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Members of Keep Improving Douglas Schools decided
to take on the task of explaining to voters why
Douglas County School District needs a bond to pay
for about $40 million in capital improvement
projects.
"Doing the research on how people really feel
about the school board and the district and trying
to educate everyone is going to be key," committee
chair Johnelle Prado told members on Feb. 7 at
Douglas High School. "We're going to need a bond
committee that's willing to work very hard to
start selling this. We're in an uphill battle in
the mud."
In September, the school board approved the
formation of the committee to explore funding
options for the district's capital improvement
projects, exceeding $100,000.
The district levies 85 cents per $100 of assessed
value in property tax. Ten cents of that is a
special debt service tax guaranteed by outstanding
bond payments.
With that debt service tax revenue comes a special
governmental services tax that helps fund the
district's capital improvement projects. When the
district's existing bonds retire in 2011, they
will lose that 10 cent tax rate and the
governmental services tax. If a new bond is passed
by voters, it will replace the old bond, and the
district will hold onto that revenue.
District officials have said passing a bond will
not raise property tax but will only preserve the
current tax rate.
The question is whether denying a bond would lower
property owners' tax bills by 10 cents per $100 of
assessed value, or if that tax rate would be used
by other county entities.
Assistant Douglas County Manager Michael Brown
said Nevada law allows county entities to grab tax
rates lost by other entities.
"If the school district loses that rate, the
proceeds from the debt service tax will be shared
proportionately by county entities who receive
revenue from property tax," said Brown.
Some county entities have not levied their maximum
allowed property tax rate and would likely grab
the school district's 10 cents if lost. For
example, a county district currently levies 12
cents per $100 of assessed value. They are allowed
to levy 21 cents, and could add the school
district's loss towards that difference.
"The tax bill for long-time homeowners in Douglas
County won't change, but allocation will change,"
said Marty Johnson, the school district's
financial consultant.
Since their inception, Keep Improving Douglas
Schools has been working on a project priority
list. Tier one of that list includes 45 projects
totaling about $33 million. Top priorities are
replacing the outside lights at Douglas High
School, replacing the back-up generator at Jacks
Valley Elementary School, re-keying all schools so
that teachers can lock classroom doors from the
inside, replacing original underground gas lines
at Gardnerville Elementary School and renewing
fire alarm systems and panels district-wide.
Because the school district is prohibited by law
to advocate for a bond, members of Keep Improving
Douglas Schools will be the ones tasked with going
from door to door trying to convince voters that a
new bond is justified.
"I want to be part of something that has potential
to pass," said committee member James Settelmeyer.
"And doing that you have to be willing to give a
110 percent."
Members decided that a continuation bond, rather
than a traditional bond, would benefit the school
district most.
"The continuation bond gives you more flexibility
because the amount of money you're going to get is
more open-ended," said Johnson.
Where a traditional bond allocates a fixed sum of
money, a continuation bond allows the amount
issued to change based on current revenue streams.
If the targeted amount increases, more money can
be issued. Conversely, if the targeted amount
becomes less, any additional money issued can be
rolled over towards lower priority projects.
If, following the recommendation of the committee,
the Douglas County School Board gets a bond
measure on the ballot for November's election, it
will be voters and not committee members deciding
how the school district funds its capital
improvement projects.
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