Maintaining Good Schools - Bond Issue Facts

Pattonville's Facilities Plan 2006/Zero Tax Rate Increase Bond Issue

The Pattonville Board of Education asked voters to approve a $19 million no tax rate increase bond issue during the Nov. 7, 2006, election to fund improvements and repair projects included in the plan. The Pattonville community supported the bond issue with 76 percent favorable vote.

Click here to view the complete building-by-building list of projects that were approved and are in the process of being completed in the Pattonville's new facilities plan. The $19 million cost includes estimates for all the actual construction costs, plus fees and contingency funds for professional services such as architectural design and construction project management. The projects on the lists that will be funded with a bond issue were selected as priorities by parents, staff and community members at each school. Items which have "future or operations" will be reconsidered at a future time or will be completed through Pattonville's normal operating budget.

What is a bond issue?

Typically, school districts use bond issues to fund large and long-range construction, maintenance or repair projects that would be too costly to cover with existing budget funds. In a bond issue, a school district borrows money by issuing promissory notes that it will repay its investors. In a no tax rate increase bond issue, school districts are able to fund repayment of the bonds through its existing budget, without raising its tax rate that is devoted to paying down debts.

What is a no tax rate increase bond issue?

A no tax rate increase bond issue works much like a home equity loan, where a homeowner who pays down his debts is able to spend up to his credit limit again for new projects without paying more in his monthly loan payment.