Superintendent Dr. Mike Slagle reported on the Proposition RP-1 tax levy transfer, which will be on the April 4, 2023, ballot.
"One of the top priorities of our new strategic plan is a commitment to the recruitment and retention of teachers and staff in this school district. One of the ways in which we identified to help with that was to improve our total compensation structure. In our November work session, we discussed three options the Board had for the total compensation structure. One option was to do nothing at the current time, a second option was to create capacity by raising the operation tax levy, and the third option was to raise capacity by transferring some current debt service levy to the operating levy for a zero net overall tax levy impact to property owners. At the November meeting, we discussed the merits of each option, and you gave us direction at that meeting for an approach that raises capacity for total compensation improvement by transferring some current debt service levy to the operating levy for a zero net impact to property owners.
"At our special meeting on Jan 12, you approved a resolution that transfers some current debt service levy to the operating levy on the ballot for April. During our discussions on Jan 12, you asked for some clarifying information on what that could mean for a future debt service levy, should another bond issue election become necessary in 2027. We have worked with Stifel Financial Advisors to address your questions.
"In our current Long Range Facility Plan, which the Board approved in 2020, the following items were projected for our next set of facility needs: Elementary School #8, Career Oriented Programs, and Facility Maintenance. We are scheduled to formally review and renew our Long Range Facility Plan in a couple of years. Dr. Pettengill is currently leading an informal review with a subcommittee of members of our citizens' advisory committee. The current trend is that Elementary School #8 will likely not be needed in the timeframe approved by the last LRFP. However, a more in-depth analysis of our facilities will take place in the next 24 months.
"Assuming all facilities in the current LRFP are needed, and a bond issue election of about $50M was placed on the ballot in 2027, current projections suggest that we would need a debt service levy increase of about 20 cents.
"Assuming that not all the facilities in the current LRFP are needed, a bond issue election of less than 50M would suggest a debt service levy increase of fewer than 20 cents.
"Current projections indicate no changes in the debt service levy if a future Board of Education does not want to place a bond election on a ballot in 2027.
"If a future bond election was pushed off to 2031, current projections suggest the potential for a no-tax rate bond election in the amount of about 30 million.
"As we noted in our presentation to you in November and again two weeks ago, moving some of our debt service capacity to the operation side results in a zero net increase to property owners, but could use some of our capacity for a future bond election. The next bond election is still several years away, and I am confident in our ability to manage and plan for the future with the help of a future Board of Education, our financial advisors, and the LRFP committee."
April 2023 Tax Rate Transfer Flyer