SCHOOL SEEKS 51-CENT TAX HIKE; VOTER APPROVAL WOULD RESULT IN MIDDLE SCHOOL

Cape Girardeau's Board of Education will ask voters for a 51-cent tax increase on Oct. 5. Money generated would fund construction of a middle school and other improvements.

Board President John Campbell estimated the 51 cents per $100 assessed valuation would generate between $16 million and $18 million. The board would finance the building through a lease-purchase plan.

At the Monday meeting, the school board approved a resolution to place the issue on the ballot. The ballot will be filed with the county clerk today.

Six members of the board present voted in favor of the October ballot issue. Board member Gwen Bennett was absent.

Superintendent Neyland Clark presented a recommendation from the administration for the 51 cent levy hike to be on the October ballot.

Clark said: "This represents an action taken by the board that is a compromise. It certainly is stripping down the projects we proposed in April. We are slowing it down and taking it in stages."

"This is roughly half of what we asked for in April," Campbell said.

In April voters turned down a 99-cent tax increase that would have funded construction of a middle school, an elementary school, an addition to Jefferson Elementary School and other improvements to buildings in the district.

"After the April election, which failed, we got a lot of feedback from constituents," Campbell said. "We spent some time talking about this at our annual planning meeting. I think there was a consensus at that meeting that we all as a unit think we need to do something. Our facilities are in need of repair."

Clark said, "Our Achilles heel one of our weaknesses is our antiquated facilities.

"For myself, I had some concerns about the lease-purchase. It was something new and different," Campbell said. "I met with Mark Grimm, Joe Russell and Dr. Clark, and I feel a lot more comfortable with the option of lease-purchase."

The lease-purchase issue requires a simple majority to pass. General obligation bonds require a four-sevenths or two-thirds majority for approval, depending on the date the election is held.

Clark said: "We looked at a whole array of possibilities. We discussed the number of pennies to put on the ballot in October; or November or April, August or November of next year."

The October ballot seemed the best, board members agreed.

Campbell said: "The longer we put it off, the harder it will be. I don't think we want to be associated in any form or fashion with the gaming issue in November."

Cape Girardeau voters will decide Nov. 2 whether to authorize riverboat gambling here.

At the board's planning session last month in Jefferson City, Vic Slaughter, director of school finance for the state education department, told members Missouri's new funding law makes it profitable for schools to increase tax levies. The higher the local tax, the more state funds the district will receive.

Mark Grimm, bond counsel with the Gilmore-Bell company in Kansas City, talked with the board about lease-purchase.

He explained that many school districts and municipal governments use lease-purchase plans to finance capital purchases and improvements. School districts across the state, including Jackson and New Madrid, are using lease-purchase.

Grimm said about 50 percent of school district clients are financing with lease-purchase. The other half use more traditional general-obligation-bond financing.

Cape Girardeau city has about $22 million in bonds outstanding through lease-purchases, he said.

District attorney Joe Russell explained that the school board sets up a not-for-profit corporation to actually buy the building and lease it to the school district. The district pays rent on a year-by-year lease agreement until the building is paid off, usually in 20 years.

Board member Lyle Davis asked if the district should consider using a commercial lease-purchase company.

Both Grimm and Russell said as a rule the cost of the project would be higher if such a company was used.

Board member Steve Wright said: "I think if we do this and get the middle school, that will free up classrooms in other buildings. We are looking for space."

"Although we do not have a comprehensive plan, other than building a middle school," Campbell said, "I would hope to close one or more of our older facilities."

"I charge the administration to see that we get the most for that 51 cents and in the next few weeks develop a comprehensive plan of what we can do with that money."

"Also, people should be aware that we will have to talk about redistricting," said board member Ed Thompson. "I think there will be other ways to alleviate overcrowding."

Thompson expressed a concern that additional money be earmarked for building maintenance.

Campbell said some of the 51 cents could be dedicated to building maintenance. "We have some choices to make."

Following the meeting, Campbell said, "The hard part has just started."