Planning has started anew for how to go about bringing schools up to snuff in USD 257.
Will there be new structures, remodel and update of what we have or some combination?
The district has hired a Wichita architectural firm to give advice, and enlisted citizens to weigh in from every perspective.
Transparency is the watchword.
Anytime any public body does anything of consequence, the ultimate consideration is what does it cost and how will it be paid.
All governing bodies have a common mechanism for raising money to upgrade schools, improve roads or add substantially to a department: general obligation bonds. Once issued, the bonds require annual payments, almost exclusively from property tax assessments. Although that may not be fair because ownership of property does not always equate to wealth, property taxes are the means to provide stable revenue year after year.
The other two legs of the public fiscal stool, sales and incomes taxes, can vary from year to year. And, neither is directly available to school districts.
Assessment of property taxes is the backbone of all local bodies’ general fund revenue, that which pays salaries, buys materials and takes of all other needs.
EVEN SO, other means of financing are available that board of education members should consider. The primary one is distribution of property tax revenue raised on behalf of Allen County.
The county will begin receiving a payment in lieu of taxes of $250,000 a year for 10 years when the EDP Renewables wind farm reaches its target of generating 200 megawatts of power in 2019.
In year 11, when a state-imposed property tax exemption expires, annual property taxes, according to models EDP has researched, will be about $1.2 million a year.
Current commissioners resolved on Nov. 21 they would contribute a sizeable portion of what they receive to the three school districts in Allen County. USD 256 (Moran-Elsmore) will be the main recipient, it having within its district the lion’s share of the wind farm.
Whatever might be sent the way of 257 would not be nearly enough to meet amortization of a local bond issue of any magnitude. But, it would be welcome, and helpful.
A second way to reduce the burden on property taxpayers could be to approach a portion of the issue through lease-purchase. USD 258 avoided a property tax increase in such a manner to finance its comprehensive sports complex on the east edge of Humboldt.
Other creative financial approaches may be available if people put their heads together.
We are a long way from a full-blown proposal, whatever it may be, but USD 257 is on the right track because it’s involving well-intentioned folks who promise to answer tough questions and give voters a solid, well-researched proposal to decide.
— Bob Johnson
