Steelville voters will decide whether to approve a no-tax increase bond issue for the Steelville R-3 School District in the upcoming April 7 municipal election.

The proposition asks voters to approve issuing bonds for $6 million, which will be used to make significant improvements to school facilities. The additional funds will not increase the tax burden on local property owners.

The language voters will see on their ballots is: “Shall Steelville R-III School District issue its general obligation bonds in the amount of $6,000,000, estimated to result in no increase to the District’s debt service property tax levy, for the purpose of constructing, improving, repairing, renovating, furnishing and equipping school sites and facilities? If this question is approved, the District’s debt service property tax levy is estimated to remain unchanged at $0.77 per $100 of assessed valuation of real and personal property.”

A bond issue is a way for school districts to borrow money used to finance significant improvement projects to facilities. In Missouri, bond issues require voter approval even if they will not raise the tax rate.

Bond issues are similar to a homeowner taking out a mortgage for major renovations, rather than paying for it all at once. 

When a district determines a need for significant capital improvements, the school board votes to place the bond issue on the ballot. In order to pass in the upcoming municipal election, the proposition requires a four-sevenths majority, which is about 57 percent. 

When a bond issue is approved, the district sells bonds to a purchaser who offers the lowest interest rate. These funds are used to complete the projects and debt is paid back over time, similar to a home loan.

Each year, the district pays off old debt from its past bond issues. As the loan balance decreases, the district can borrow more money and pay it back using revenue from the existing tax rate, rather than increasing taxes for local property owners.

Funds from bond issues can only be used for expenditures related to capital improvements. By state law, they cannot be spent on operating expenses such as salaries, textbooks, supplies, transportation, etc. 

If the bond issue fails, taxes do not decrease. The current tax rate of 77 cents per $100 of assessed valuation of real or personal property will stay the same regardless of if the issue passes or fails.

The district has several priorities when it comes to use of the funds should the issue be approved. Elementary school renovations are at the top of the list. But before any major renovations can be done, asbestos needs to be removed from the building’s ceiling.

The asbestos is in the original 1957 portion of the building, and although it’s currently managed, it needs to be professionally removed to prevent more expensive repairs in the future. 

Superintendent Steven Vetter noted that if the bond issue passes, he would like to have the asbestos removal done over the summer while students are not in the building.

Once that project is complete, the district will do drainage repairs on the elementary and middle schools to help get ahead of any potential foundation damage, flooding and mold issues. 

“Last year there were probably three occasions where during the school day, it rained to a point where it was coming in and we had to move classrooms around and desks out of classrooms,” Vetter said. “So to just not have to deal with that will be wonderful.”

In an effort to save on utility bills in the long term, the district is also looking to replace energy-inefficient windows and the exterior wall in the old section of the elementary school. This will improve insulation as well as building security.

If the bond issue passes, the elementary school will also see upgrades to its heating and cooling systems. Newer systems will provide the building with better air filtration and more precise climate control.

“Currently we’re renting and purchasing dehumidifiers, large scale ones, and we’ve had HVAC companies come in and look, and the units just won’t pull that humidity out of the air there — both because they’re old and just not built for that, but also those exterior walls that let the water in, its really impacting that as well,” Vetter said.

Classroom doors in the elementary school would also be replaced in order to upgrade security and locking mechanisms, as well as improve fire ratings.

If funds remain after the elementary school renovations, they will be used to replace the high school’s gymnasium floor and put in an ADA compliant accessible parking lot at the high school.

These projects were selected after a two-year assessment process conducted by district partners Navigate Building Solutions and Bond Architects, as well as the Facility Committee and administration. 

The group of district staff, community members, architects and engineers evaluated all of the district’s buildings in order to identify a list of needs. Following the assessment, a facilities master plan was put together based on safety, fiscal responsibility and student learning. 

“The need, over the last probably year and a half to two years, has consistently grown larger and larger at the elementary school,” Vetter said. “The building’s got a lot of life left if we take care of it.”

If the proposition is approved, the district plans to finalize designs as soon as possible. Most of the major renovations to the elementary school would take place next summer in order to limit disruptions to classes. Additional projects could begin as early as this summer.

If the bond issue fails, the proposed projects would be delayed or canceled. Funds for emergency repairs would need to come out of the district’s operating budget, meaning less money for student programs, educational materials and staffing.

The last bond issue the district issued was in 2019, and funds were used to construct a new gymnasium at the elementary school and raze the old middle and high school building, among other projects.

The district is hosting an open house from 5 to 7 p.m. on Thursday, April 2, at the elementary school. Community members are welcome to view the facilities, learn about project plans and meet with district leaders. Vetter also welcomes anyone looking to share their opinions or ask questions into his office.