|Q. What would happen if Proposition Safety/Renovation does not pass?|
|A. Some maintenance and repair work would possibly be deferred and most improvements, installations, and upgrades postponed. Our schools can possibly fall behind in terms of safety, technology, and upgrades without these improvements. The most critical needs probably can be addressed but at the expense of other educational progress. To pay for these repairs, money would have to be spent from the day-to-day operating budget (the funds that normally pay for classroom instruction and supplies).|
|Q. Will this bond issue raise my taxes?
|A. No, Voter approval of the $4,700,000 bond issue is not estimated to increase the District’s current debt service tax rate levy of 50 cents per $100 assessed valuation, which is dedicated to the repayment of bonds. Legally, the revenue generated by this levy can only be used to pay the interest and principal on the existing and new bonds without an increase. Multiple factors allow for this no tax increase, including:
The District has completed five refundings and three prepayments of existing debt over the past 26 years saving the District over $2,620,000 in future interest and, therefore, creating more room for additional bond payments.
The interest rates available in the current municipal bond market are historically very low which is favorable to the issuance of bonds at this time.
Due to participation in the Missouri Direct Deposit Program, the bonds are expected to receive an AA+ rating from Standard and Poor’s which makes them favorable to potential purchasers.
Under conservative assumptions, the District’s current levy already produces sufficient revenues to support the District’s existing debt as well as the proposed bond issue.
|Q. How does our tax rate compare to surrounding areas?|
|A. Potosi R-III Schools has the second lowest tax rate of the area schools.|