Frequently Asked Questions
Q. How will the passing of this bond issue affect the school district’s tax rate?
A. The $32,000,000 general obligation bond issue on the April 4, 2023 ballot is structured in a manner that is estimated to not require any increase to the existing debt service tax levy of $1.70 per one hundred dollars of assessed valuation based upon very conservative projections for future growth in assessed valuation. The bond issue extends the current levy but does not increase it.
Q. What is the difference between bond issues and operating levies?
A. Bond issues build “brick and mortar” buildings and facility improvements while operating levies provide funding for almost all other aspects of the school district such as salaries, benefits, supplies, materials, bus fuel, utilities, etc. Bond monies can only be used for the construction, improvement, site preparation, and equipping of school buildings and facilities.
Our overall school district tax levy rate is $4.9271, which is the lowest school district tax levy rate in Jackson County. The overall rate includes our operating levy, teacher levy, and the $1.70 debt service levy.
Q. What “other repairs and improvements to existing facilities of the District” does the district have in mind with the passage of this bond issue?
A. To the extent funds are available, we have several capital needs listed here in no particular order.
- Repair and replace roofing at district facilities.
- Upgrade heating, ventilation, and air conditioning (HVAC) systems across the district, including replacement of aging equipment.
- Address chronic flooding issues with our baseball and softball fields.
- Replace rubberized gym floors at Sni-A-Bar Elementary and Prairie Branch Elementary.
- Replace rubberized playground surface at the Early Childhood Center.
- Add storage for district operations.
- Update technology network systems throughout the district.
Q. Will these bonds be issued at “par” or “premium”? What are the implications if premium bonds are issued?
A. We are advised that premium bonds will likely be in high demand by potential investors this spring and are a strong possibility for this bond issue. Ultimately, the municipal bond market and the funding needs of the District will drive whether these bonds are offered at par, premium, or a combination of the two. When issued at a premium, the investor pays more than face value for the bonds to get a higher interest rate, and that “premium” amount beyond the face value can be used by the school district on approved capital improvements. These funds are also a means to address unexpected inflationary increases in project costs. This premium amount received beyond the original figure listed in the ballot language ($32,000,000) does not count against the district’s legal debt limit and the district only repays the $32,000,000 plus interest over the life of the financing. In addition, the bonds will be eligible for refinancing or prepayment without penalty after five years due to a short call feature.
Q. What future building plans does the District have in addition to the proposed bond issue?
A. The district is committed to completing our long-range plan for Grain Valley High School that began in 2012. We estimate two to three more new construction phases, plus renovation to the original section of the building, over the next few years.
Although student enrollment in the elementary school grade levels has been flat for several years, a future uptick in elementary enrollment may trigger the need for elementary school #5. We do not expect the need for another elementary school for at least three more years.
Q. What is the timeline for the completion of the projects associated with the April 4, 2023 bond issue?
A. If the bond issue passes on April 4th, construction would begin right away. The goal is to have this project completed by the fall of 2024. Project planning is separated into three phases: Summer 2023 - demolition of the existing weight room and establish a temporary weight room; 2023-2024 school year – construction of new fieldhouse gymnasium and new weight room; Summer 2024 – renovation of PE and varsity locker rooms, and renovation of the commons/lunchroom if bids come in favorable as an alternate bid.
What other questions do you have? Email us at [email protected].