Public School Bonds are a type of loan that school districts issue to raise funds for large capital projects like building, renovating, or repairing schools and other facilities.

School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars needed for building projects. Essentially, the voters are asked to give permission for the district to take out a loan and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can decide whether or not they want their tax contributions to pay for proposed facility projects.

Bond funds can be used to pay for new buildings, additions, and renovations to existing facilities, land acquisition, technology infrastructure, and equipment for new or existing buildings. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel, and insurance.

Missouri school districts are funded by three major sources: Federal, State, and Local, with the vast majority of district funds being supplied by Local and State sources. Two factors that drive school finance in Missouri are enrollment and local property values. 

School property taxes are determined by a tax rate approved each year by the Board of Education. The district establishes two separate rates: one for operating expenses and one for debt repayment. Together, these rates are often referred to as the district’s total tax rate.

• Operating Funds are used to fund the day-to-day operations of a school district, including teacher and staff salaries; utilities; student services and curriculum; professional development; and facility maintenance and management.
• Debt Service Funds are generated from the sale of voter-approved bonds. These funds are restricted to use only for projects such as the construction of new facilities; additions and renovations to existing facilities; safety and security projects; and purchase of capital expense items such as buses and large technology expenses.

School districts have no control over and do not set local property values. Actual property values are reassessed in every odd year by your local County Assessor's office, who receives guidance and oversight from the State Tax Commission. 

This proposal is a no-tax-increase bond; that is, it would extend the district’s debt while maintaining our current debt service tax levy. Each year, the district recalculates the amount needed to be levied in Debt Service to pay the next year's principal and interest payments on our debt, with some cushion built in for extreme circumstances. The 2026 Bond Issue only proposes an extension in debt that would allow us to maintain a close or almost exact debt service levy.