To increase capital project funds, which are used by the district for maintenance, the Rockwood Board of Education voted 6-0 to place Proposition 3 on the Nov. 7, 2023 ballot and will need a simple majority to pass.

Prop 3 aims to raise more funds for these projects while saving money for taxpayers.

“Prop 3 is a zero-tax-rate increase levy transfer. If passed, it would authorize the district to increase the operating tax levy in the Capital Projects fund by $0.54. The district would subsequently reduce the Debt Service levy by $0.54, resulting in a zero-tax-rate increase. This would be done in two phases over a year, and the resulting operating funds will provide for dedicated annual funding without borrowing funds, saving taxpayer dollars on interest,” Chief Communication Officer, Mary LaPak said. 

Prop 3 is not a bond issue, but a no-tax levy transfer. In other words, a way to move money from one fund to another without increasing taxes, but helping boost funds in a specific area. Prop 3 would move funds from the Debt Service levy to the Capital Project funds. This saves money for taxpayers, as it doesn’t increase taxes, but also doesn’t cost interest like a bond issue. The proposition will raise approximately $26-27 million annually once fully phased in.  

“The resulting funds will be used for safety items like two-way radios and security cameras; technology items like new devices for students and cybersecurity upgrades; facility maintenance like new HVAC systems, new flooring, new roofing, improvements to athletic fields and playgrounds,” LaPak said.

Chief Financial Officer Cyndee Byous said, while addressing the BOE on Aug. 17, that the current funding resources are not enough for Rockwood maintenance and refresh needs. She also said that the last bond issue, Prop T, was depleted while completing projects this summer. 

A bond issue is a bond, given by the government to an organization, that is a loan and paid off with interest. In Rockwood, taxpayers typically pay off bonds with interest. With Prop 3, taxpayers wouldn’t be paying for the interest, which ends up saving them a lot of money. It also would increase the funds for the district’s maintenance and refreshment needs, without increasing tax rates.

“Rockwood has traditionally funded our safety, technology, and cycle maintenance needs by issuing general obligation bonds. The current Debt Service levy of $0.68 provides the funding for the repayment of principal and interest on our outstanding debt. Based on current economic conditions and the structure of our outstanding debt, the district is in a position to transfer a portion of our Debt Service levy to the Operational levy in the Capital Fund without increasing the overall tax rate,” LaPak said. 

Last year a similar proposition, Prop P, was placed on the ballot. But failed to pass, as 50.88% of voters voted against it. It was later revealed through a survey that people voted against it due to a lack of information about it. Prop P was very similar to Prop 3, it had the same no-tax levy transfer policy as Prop 3. The only real difference was that Prop P failed to convince voters about its full use.

“Proposition 3 is very similar to Proposition P which was on the ballot in April 2022. It is needed now because funding from the last passed ballot initiative, Prop T in 2017, was depleted this summer and the Board engaged in work sessions before deciding to go back to the voters with the zero-tax-rate increase tax levy transfer. The district feels this is the most responsible way to fund these annual items without incurring interest or raising the tax rate. One difference with Prop 3 is that we will be sharing specific projects that are priorities at each school that will be funded if Prop 3 passes. We are finalizing those items and they will be posted in the coming weeks on the district website under rsdmo.org/Prop 3,” LaPak said.