School District Bond Issues

Posted on 03/09/2020
Prop S

When school districts in Missouri and around the country need to make large capital expenditures like building new facilities or making major repairs, they have to borrow money. Bonds are the way that school districts, fire districts, ambulance districts, etc. borrow that money. When voters approve a bond issue, the district obtains bids and sells bonds to the purchaser who offers the lowest interest rate (and current rates are very low). The funds are then used to complete capital projects, and the debt is paid back 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 time. A certain amount of your regular income is budgeted to make those payments.

The other four school districts in St. Charles County have all passed a bond issue in the past three years. FHSD has not asked our voters to approve a bond issue in 12 years. For context, one of our neighboring school districts has passed four bond issues in the past ten years.

Proposition S would generate funds to address pressing facility needs at schools across the District. The bond issue would NOT raise the tax rate, and funds from a bond issue CANNOT pay for salaries, benefits, supplies, utilities, or other operating costs. Passage of Proposition S would require approval by four-sevenths of voters, or a little more than 57 percent in the April 7 election.

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