Know the Facts About
Question 1 and Question 2
K I D S
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Vote April 6, 2021
About Question 1 and Question 2 Question 1 and Question 2 are proposals designed to provide long term financial stability for the Grandview C-4 School District by balancing the budget, maintaining the ability to pay teachers a competitive salary, and enabling the district to continue its program of keeping buildings well maintained with up-to-date learning spaces.
Costs
Where the money is going....
WHAT WILL QUESTION 1 COST HOMEOWNERS?
Q1 Question 1 seeks to create and maintain a competitive salary and benefits package that is imperative to recruit and retain quality personnel.
HOME VALUE
Salaries and benefits account for approximately 80% of the operating budget. The remaining 20% is comprised of goods and services that, in general, will continue to experience increased costs in the coming years.
Q2 Question 2 is a no tax rate increase bond issue for $45-million. The funds will be used to provide various improvements to the District which include: Renovating Grandview High School’s industrial technology area Renovating Grandview High School's Bulldog Stadium visitor side Remodeling Grandview High School's cafeteria Renovating the District fine arts area Completing district athletic facility improvements Remodeling restrooms and completing a new gym and fine arts addition to the Martin City school Installing new windows at Grandview Middle School and Meadowmere Elementary Completing playground improvements Renovating locker rooms at all middle and high school sites (to the extent funds are available) complete HVAC improvements, camera system replacement, install card key access system, roof repairs and replacement, hallway, floor and ceiling improvements, plus other small projects (such as musical instrument purchase) and improvements to the existing facilities of the District
Safety and Security 14%
Extra & Co-Curricular Enhancements 7%
CURRENT ANNUAL COST
.60 CENT INCREASE ANNUAL COST
AN ANNUAL INCREASE OF
$70,000
$573
$652
$79
$90,000
$736
$839
$103
$110,000
$900
$1025
$125
$130,000
$1064
$1212
$148
$150,000
$1227
$1398
$171
$170,000
$1391
$1585
$194
$1554
$1771
$217
$210,000
$1718
$1957
$239
$230,000
$1882
$2144
$262
$250,000
$2045
$2330
$285
$2454
$2796
$342
$190,000
$300,000
WILL QUESTION 2 RAISE MY TAXES?
Question 2 will not raise taxes. It is a no tax increase bond issue.
Ballot Language Question 1 Shall the Board of Education of the Consolidated School District No. 4 of Jackson County, Missouri, be authorized to increase the operating tax levy by $0.6000 per one hundred dollars of assessed valuation for the purpose of attracting and retaining quality certified and support staff, and meeting additional operating expenses? (If this proposition is approved, the adjusted operating levy of the District is estimated to increase by $0.6000 from $4.3057 currently, to $4.9057 per one hundred dollars of assessed valuation for the 2021 Tax Year and can be applied to the assessed valuation each year thereafter.)
Roofs and HVAC 27%
YES NO Classroom/Restroom Enhancements 52%
Question 2 Shall the Board of Education of the Consolidated School District No. 4 of Jackson County, Missouri, without an estimated increase in the current debt service property tax levy, borrow money in the amount of Forty-Five Million Dollars ($45,000,000) for the purpose of providing funds without limitation for various improvements to the high school industrial technology area, stadium visitor side renovation, cafeteria remodel, fine arts area renovations; complete athletic facility improvements; remodel restrooms and complete a new gym and fine arts addition to the Martin City School; install new windows at Grandview Middle School and Meadowmere Elementary; complete playground improvements; renovate locker rooms at all secondary sites; to the extent funds are available, complete HVAC improvements, camera system replacement, card key access system installation, roofing repairs and replacement, hallway and floor and ceiling improvements plus other small projects (such as musical instrument purchase) and improvements to the existing facilities of the District; and issue general obligation bonds for the payment thereof? If this proposition is approved, the adjusted debt service levy of the School District is estimated to remain unchanged at $1.0500 per one hundred dollars of assessed valuation of real and personal property. YES NO
2
FAQ's
QUESTION 1
QUESTION 2 Q: What is an operating tax levy? A: A property tax levy is the amount of property tax dollars a school district requires in order to operate the district for the upcoming school year.
Q: Why is an operating tax levy important for a school district? A: Property taxes are the primary funding source for school districts and account for 46% of the Grandview C-4 School District’s funding for general operations. A district relies on a property tax levy, either through extending a current levy or by a levy increase, to match revenues with increasing expenditures such as cost of living, services and materials. Q: How is a property tax levy calculated? A: The tax levy is determined utilizing a calculation that considers the previous year’s tax rate, the current Consumer Price Index, the assessed value (AV) of the properties within the district’s boundaries, and new growth of properties within the district’s boundaries. Q: Will a “no” vote on a property tax levy increase lower taxes? A: NO, the current tax rates would remain in effect and would be calculated as outlined above.
Q: What is a bond issue? A: A bond issue is a traditional way for schools to borrow money to pay for capital projects that are too costly for a typical budget. In Missouri, this requires voter approval even if the bond issue will not raise the tax rate. Q: How does a bond issue work? A: When voters approve a bond issue, the school district sells bonds to a purchaser who offers the lowest interest rate. These funds are used to complete the project and the debt is paid back over time. It is similar to a home loan. Q: How can there be no tax increase when a bond issue passes? A: Each year the district pays off old debt from past bond issues. As the loan balance decreases, the district can borrow more and pay it back from existing revenue sources such as growth in assessed valuation and low interest rates. To generate additional revenue, the existing tax rate is extended, but not increased. Q: Will a “no” vote on a no tax increase issue lower taxes? A: NO, the current tax rate will not be lowered if the bond issue fails. Q: Can the money generated by passing a no tax increase bond issue be
Q: What does Grandview C-4 School District have on the April ballot? A: There is also a .60 cent proposed tax levy increase on the ballot that will be labeled as Question 1. The ballot also has a NO TAX INCREASE bond issue that will be labeled as Question 2. Q: Will the district’s .60 cent levy increase change the tax rate? A: Yes, the increase will be based on the county’s assessed market value of your property. For an estimated annual increase please see this chart.
Q: If the tax levy increase passes how will the funds be used? A: The additional funds will be used to support the general operations of the district. Salaries and benefits account for approximately 80% of the operating budget. The funds will be used to maintain our competitive salary and benefit package, thereby enabling the district to attract and retain quality staff to educate our students. The remaining 20% is comprised of goods and services that, in general, will continue to experience increased costs in the coming years.
used for things other than capital expenses? A: NO, it cannot be used for salaries, supplies, utilities, etc. Q: What does Grandview C-4 have on the April ballot? A: It has a NO TAX INCREASE bond issue on the April 6 ballot that will be labeled as Question 2. There is also a .60 cent proposed tax levy increase on the ballot that will be labeled as Question 1. Q: Will the district’s NO TAX INCREASE bond issue change the tax rate. A: NO, whether it passes or fails the tax rate will remain the same. If it passes, the tax will be extended from its current end date. Q: What are the financial reasons for passing this issue in the District? A: Without bond money, the need for facility improvements and upgrades still exists - the only other place for the money to come from is the operating budget which supports our current programs, salaries, etc. Deep cuts would need to be made to finance the costly projects generally reserved for bond money. Q: If the bond passes, how is the distribution of the money determined? A: The Facilities Improvement Team, made up of board members, administrators and maintenance managers, has assessed the needs for capital repairs and improvements throughout the district and put forward a plan based on need, manageability, long term impact and other factors and made a comprehensive plan for the distribution of the funds based on projected costs. 3
Economic Impact
www.grandviewc4.net
Based on a three-year forecast, the future financial health of the district is dependent on either an increase in revenues or a reduction in expenses. Property taxes and State Aid are the largest sources of revenue for the district. The district is not experiencing a significant amount of new construction, and we are limited in the tax revenue increase that is allowed on existing properties. The pandemic resulted in a reduction in State Aid last year and the beginning of this year. While State Aid may be restored by the end of the current year, we do not anticipate sizable increases for the foreseeable future. A competitive salary and benefits package is imperative to recruit and retain quality personnel. The ongoing increases that will preserve our current competitive position exceed the anticipated increases in revenues. Salaries and benefits account for approximately 80% of the operating budget. The remaining 20% is comprised of the cost of goods and services that will continue to increase in the coming years. It’s been 17 years since the district has asked taxpayers for an increase. In 2004, district taxpayers approved a tax levy increase. Through sound fiscal practices, we have maximized the use of that increase to stabilize district finances well beyond the years that were initially projected.
Published and paid for by the Grandview C-4 School District