PROPOSITION C.A.R.E.

What is Proposition C.A.R.E.? Proposition C.A.R.E. is a NO TAX INCREASE bond issue that will utilize the portion of the current tax revenue that is solely designated to repay bonds. The levy will be extended, but not increased.  The projects supported by these bonds will help to keep district facilities safe, secure and up-to-date.

Projects include the following areas: 

  • Adding 6 classrooms split between the high school and elementary sides.  

  • LED interior lighting throughout all buildings.

  • Exterior lighting in parking lots.

  • New interior doors in the elementary.

  • Paving of driveways and parking lots.

  • Renovate the old gym.

  • Install drainage systems.

  • Upgrade the baseball field.

  • New storage shed for equipment.

Frequently Asked Questions

  1. What is a bond issue?

A bond issue is a traditional way for schools to borrow money to pay for major school maintenance and repair projects, such as replacing old roofs or HVAC units or making upgrades to worn-out areas.

  1. How does a bond issue work?

When voters approve a bond issue, the Silex R-I School District obtains bids and sells bonds to the purchaser who offers the lowest interest rate. The district uses the funds to complete the capital projects and pays back the debt over time. This process is similar to a home loan. When you purchase a home, you borrow money at a specific interest rate. You make payments on that loan, which include principal and interest, over a period of years. A certain amount of your regular income is budgeted to make those payments.

  1. How do schools use bond issues to benefit students?

Bond issues allow schools to pay for costly repairs and renovation over time instead of having to pay all at once. They also allow schools to devote most of their day-to-day operating budgets for classroom instruction instead of major repair work.

  1. How can we complete these projects without raising taxes?

Each year, the school district pays off old debt from previous bonds. As our loan balance decreases, we are able to borrow more money and pay it back using revenue from the existing tax rate.

  1. If Prop C.A.R.E. does not pass, will our tax rate go down?

No. Whether the proposition passes or fails, the tax rate will remain unchanged.

  1. What would happen if it does not pass?

Some maintenance and repair work would have to be deferred and most school renovation projects would be postponed indefinitely. The most critical maintenance and repair needs would still have to be addressed. To pay for this, more money would have to be spent from the day-to-day operating budget (the part that normally pays for classroom instruction, teachers, staff and supplies).

  1. Can the funds be used in any other way?

No. Money from bond issues can only be used for capital expenditures such as major maintenance, repair, and renovation costs. Bond funds may not be used for operating expenses such as salaries, benefits, transportation costs, utilities, textbooks, or other supplies.

  1. What is the financing proposal of the Silex R-I School District?

The Board of Education is seeking voter approval at the April 6, 2021 election for a $5,000,000 general obligation bond issue that extends but does not increase the current $0.9629 debt service levy of the District.  The proceeds from these bonds are to be used for the purpose of providing funds to implement safety and security improvements, including interior and exterior lighting and new interior doors; to construct, equip, and furnish six additional classrooms; to pave driveways and parking lots; to renovate the old gymnasium; to install new drainage systems; to upgrade the baseball field; to the extent funds are available, complete other repairs and improvements to the existing facilities of the District.

  1. What is a general obligation bond and how does it relate to the financing for this project?

Under Missouri law the only way a School District can legally borrow money for school facilities’ improvements or construction on a full faith and credit basis is to seek voter approval of a general obligation bond issue.  A “general obligation” means that the School District can and must levy sufficient taxes to repay the principal and interest associated with the bonds.  With voter approval of at least a four-sevenths majority at the April 6, 2021 election, the District can then sell the $5,000,000 of bonds in increments of $5,000.  This financing process gains access to numerous investors at favorable terms compared to what would happen if the District were dependent upon a single lender to supply the funding. The interest earned by the investors is exempt from federal and state of Missouri income taxes.  With the interest being tax-exempt, the actual rate the District must pay is much lower than would otherwise be the case for a typical loan.  Based upon current interest rates in the municipal bond market the average interest rate is expected to be less than 3.00%.

  1. How can the $5,000,000 general obligation bond issue be referred to as a no tax increase program?

The current $0.9629 debt service fund levy is adequate to repay the existing bonds plus the $5,000,000 of new bonds by extending the levy twelve years or less (from Fiscal Year ending 2029 to 2041), but not increasing it above the current level.  This is feasible due to growth in assessed valuation; interest savings over the past eighteen years totaling $845,026 from previous bond refinancing, prepayments of principal, and participation in zero interest bond programs; and very low interest rates in the current municipal bond market.

  1.  Can the District pay the bonds off early to save interest expense?

Yes, the bonds will contain optional redemption (call) features that enable the District to prepay them at no penalty in the event fund balances become large enough for that to occur.  The call feature also provides the District the opportunity to refund the bonds to take advantage of lower interest rates in the future, if the overall economic conditions create that set of circumstances. 

  1. Will local investors have an opportunity to purchase the Bonds?

Yes, the bonds will be available to local investors prior to being offered to others.  If you are interested in purchasing some of the bonds, let the District offices know and they will insure you are contacted after the election.

  1.  What type of rating will the general obligation bonds have?

The District can expect to receive an AA+ rating by S&P Global Corporation on the general obligation bonds.  Missouri school districts issuing general obligation bonds for construction purposes are eligible in most cases to participate in the State of Missouri Direct Deposit Program.  This program provides each issuer with an AA+ rating.

  1. How do I register to vote?

The election will be held on Tuesday, April 6, 2021. Polls will be open from 6 a.m.-7 p.m. Registration forms and absentee ballots are available at lcclerk.com. Absentee ballot requests also may be made in writing by April 2nd to the Lincoln County Clerk’s Office, 201 Main Street, Troy, Missouri 63379.

Current Conditions

Curent Conditions

New School Plans

New School Plans

Primary Objectives

  • Remove trailers and construct (6)

    new classrooms (2) elementary and

    (4) high school

  • Complete renovation of old gym

    (including a new roof)

  • Upgrade to LED lighting

  • Install concrete and asphalt

    throughout parking lots

  • Upgrade baseball field

  • Replace corridor doors in elementary school

  • Diverge water at the playground

  • Replace existing storage shed

YOUR VOTE MATTERS!

Below is the official ballot language that will appear on the April 6, 2021, ballot as required by Missouri State law. 

Shall the Board of Education of the Silex R-I School District, Missouri, without an estimated increase in the current debt service property tax levy, borrow money in the amount of Five Million Dollars ($5,000,000) for the purpose of providing funds to implement safety and security improvements, including interior and exterior lighting and new interior doors; to construct, equip, and furnish six additional classrooms; the paving of driveways and parking lots; to renovate the old gymnasium; to install new drainage systems; to upgrade the baseball field; to the extent funds are available, complete other repairs 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 $0.9629 per one hundred dollars of assessed valuation of real and personal property.

This is a NO-TAX-INCREASE bond issue.  Therefore, voters will see no impact on the current tax rate ($4.22) from the School District. 

Due to the fiscal responsibility of the Board of Education and partnership with our bond underwriter, the District has been able to take advantage of low interest rates as we re-structure and repay the debt of the District. With the pre-payment of bonds, the District has been able to SAVE taxpayers in excess of 14 million dollars since 1997.

Any questions may be directed to Superintendent Rod Hamlett at rodhamlett@silex.k12.mo.us

Tomorrow is election day! Please remember to go vote. The polls are open on Tuesday from 6:00 a.m. to 7:00 p.m. You can also go to the courthouse in Troy today until 5:00 p.m. Thank you!

Vote

Kay Hall

Miller

Vehige

Hall

Norton

Carnahan