Shall the Board of Education of the School District of Jennings, St. Louis County, Missouri, borrow money in the amount of eleven million five hundred thousand dollars ($11,500,000) for the purpose of acquiring, constructing, renovating, repairing, improving, furnishing and equipping schoolhouse sites, buildings and related facilities, 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 increase from $0.51 to $0.98 per one hundred dollars assessed valuation of real and personal property.
Q. What is the difference between a bond issue and a tax levy?
A. A bond issue is used when a school district wants to make capital improvements or purchase large amounts of equipment. The Jennings School is currently proposing a bond issue to the April 5, 2011 election. A bond is essentially a long-term loan and is similar to a mortgage. In effect. Jennings School District is given an advance by investors who purchse District bonds. In return, Jennings School District promises to pay investors a specific rate of interst on their funds until the principal part of their original loan has been completely repaid, generally during a period of 20 years or less. On the other hand, normal operating funds are received from the operating tax levy, a separate voter-approved levy. This fund pays for salaries, utilities, supplies etc.
Q. Would the tax rate increase if Proposition J passes?
Yes. Voter approval of the $11.5 million bond issue would increase the District's current debt service tax rate of .51 cents to .98 cents. If approved, an owner of a $50,000 house would pay an additional $44.65 per year. For a $70,000 house, it would be $62.51 per year, and for a $90,000 house it would be $80.37 per year.
Q. How many "Yes" votes are required for Proposition J to pass?
A. A four-sevenths (57.2%) majority is required for passage of Proposition J.