Frequently Asked Questions
QUESTION: What is a bond issue?
ANSWER: A bond issue is a way to borrow money to fund capital projects. This requires voter approval. Capital projects include building new schools, school renovations and certain technology costs. Money generated from bonds cannot be used for salaries or other operating expenses of the buildings. The best way to remember how bonds money can be used is to remember that BONDS are for BUILDINGS.
QUESTION: Where does the money come from to pay for bonds?
ANSWER: Bayless is asking to sell bonds on a NO TAX INCREASE basis. When the voters approve a bond issue, the school district then obtains bids and sells bonds to the purchaser that offers the lowest interest rate. The district pays back the bond debt over a period of years, usually around 20 years. We use the tax money that is already being paid to the district to make payments on the bond debt. This allows us to borrow money without raising taxes.
This process is similar to a home loan. When you purchase a home, you borrow money at a specific interest rate. You make payments on that loan, which include principal and interest, over a period of years. In order to make those payments, you dedicate a certain amount of your income to retiring that debt.
QUESTION: How can we sell bonds without increasing the tax rate?
ANSWER: Each year, the district retires, or pays off, old debt from previous bond issues and our assessed value usually grows. As that happens, we are able to fund new debt using existing tax money without increasing our tax rate.
This is similar to what happens when you take out a home equity loan. You continue to make those monthly payments, which have not increased, but you have “added” new debt, which may extend the period of time it will take to pay off the entire loan.
QUESTION: Why does Bayless seek bond issues every few years?
ANSWER: This method of funding allows us to pay for building projects that are expensive and have a “usable life” that is similar to the “life” of the loan.
Bayless School buildings are in good shape, but they have aged. To keep our facilities up to date and in good working order, we must renovate and improve them from time to time. Like all structures, these facilities require regular maintenance, upgrading and renovation.
QUESTION: For what purpose will the bond money be used?
ANSWER: To put it simply, Prop 1 is for building additional Junior High School classrooms and improving our facilities. The money from bonds issued as a result of the April 2nd election will be used to upgrade facilities across our entire campus. You can see the scheduled building improvements HERE.
QUESTION: Bayless recently passed Prop S, why aren't these building expenses included in our operating budget?
ANSWER: Operating funds are used to support salaries and benefits, transportation costs, utilities, textbooks or other teaching supplies needed to run a school district. We also use some operating funds for the maintenance and upkeep of facilities. However, funding larger projects and new construction would demand too much money from our operating fund. That is why bonds are used. Money from bond Issues can only be used for capital (building) projects.
QUESTION: Will any of the bond issue funds go toward areas other than building needs?
ANSWER: Although building needs are important, many people are more interested in finding the funds to hire experienced teachers of exceptional quality to educate their children.
Bond issues allow Bayless to free money from our annual operating budget to provide for needed building maintenance and capital improvements, so we can keep a higher percentage of our operating budget to pay for teacher salaries and benefits.
The state of Missouri makes it very clear that the money from bond issues can ONLY be used for capital expenditures such as: building new schools, school renovations, and technology costs. By law, bond funds MAY NOT be used for operating expenses such as: salaries and benefits, transportation costs, utilities, textbooks or other supplies.
QUESTION: Why do schools ask to issue bonds in order to borrow money?
ANSWER: Bonds provide a way for the school to get a low interest loan which is funded by outside investors. School bonds are very attractive to investors because it is very unlikely that a school would default on a loan. In particular, Bayless School District has a AA- bond rating which is among the very highest earned. Bonds are interest sensitive. Right now, interest rates are very favorable to schools seeking bond money.
QUESTION: What happens if the bond election is unsuccessful?
ANSWER: The overcrowding and inefficiency of our High School and Junior High will continue. In addition, young families who might consider moving to Bayless may choose to find housing in a neighboring district that provides better facilities for their children. Issues with our buildings will not go away by themselves. Eventually, a larger bond issue and, perhaps, a tax increase will be required to do major repairs and construction.
QUESTION: Why is Bayless' assessed valuation so low?
ANSWER: Assessed valuation represents the total value of all real-estate in our district. Bayless is a geographically smaller school district, covering about four square miles. Our district is mostly single-family houses, with few commercial buildings and almost no industry. These are very desirable attributes for a neighborhood. Bayless is an attractive and affordable community for home buyers.
QUESTION: Why doesn't Bayless merge with another district?
ANSWER: Over the years, some have argued that "bigger is better" when it comes to school districts. We disagree. Bayless benefits greatly from true local control. Our superintendent, principals and Board of Education members are known by most of our parents. In addition, our school size allow students to obtain a personalized education, where virtually all students know, and are known, by their classmates and faculty. From a financial standpoint, any merger with another school district would not necessarily involve a tax break. Finally, any merger would require approval by voters of any district involved in merging.
QUESTION: What happens if the tax proposals are unsuccessful?
ANSWER: If the Prop. 1 Bond Issue does not pass, Bayless will soon not have classroom space to properly provide services to its Junior High and High School students. As a result, young families who might consider moving to Bayless may choose to find housing in a neighboring district that provides adequate facilities for students. In addition, families already in Bayless may choose to leave. Issues with our buildings will not go away by themselves.
ANSWER: A bond issue is a way to borrow money to fund capital projects. This requires voter approval. Capital projects include building new schools, school renovations and certain technology costs. Money generated from bonds cannot be used for salaries or other operating expenses of the buildings. The best way to remember how bonds money can be used is to remember that BONDS are for BUILDINGS.
QUESTION: Where does the money come from to pay for bonds?
ANSWER: Bayless is asking to sell bonds on a NO TAX INCREASE basis. When the voters approve a bond issue, the school district then obtains bids and sells bonds to the purchaser that offers the lowest interest rate. The district pays back the bond debt over a period of years, usually around 20 years. We use the tax money that is already being paid to the district to make payments on the bond debt. This allows us to borrow money without raising taxes.
This process is similar to a home loan. When you purchase a home, you borrow money at a specific interest rate. You make payments on that loan, which include principal and interest, over a period of years. In order to make those payments, you dedicate a certain amount of your income to retiring that debt.
QUESTION: How can we sell bonds without increasing the tax rate?
ANSWER: Each year, the district retires, or pays off, old debt from previous bond issues and our assessed value usually grows. As that happens, we are able to fund new debt using existing tax money without increasing our tax rate.
This is similar to what happens when you take out a home equity loan. You continue to make those monthly payments, which have not increased, but you have “added” new debt, which may extend the period of time it will take to pay off the entire loan.
QUESTION: Why does Bayless seek bond issues every few years?
ANSWER: This method of funding allows us to pay for building projects that are expensive and have a “usable life” that is similar to the “life” of the loan.
Bayless School buildings are in good shape, but they have aged. To keep our facilities up to date and in good working order, we must renovate and improve them from time to time. Like all structures, these facilities require regular maintenance, upgrading and renovation.
QUESTION: For what purpose will the bond money be used?
ANSWER: To put it simply, Prop 1 is for building additional Junior High School classrooms and improving our facilities. The money from bonds issued as a result of the April 2nd election will be used to upgrade facilities across our entire campus. You can see the scheduled building improvements HERE.
QUESTION: Bayless recently passed Prop S, why aren't these building expenses included in our operating budget?
ANSWER: Operating funds are used to support salaries and benefits, transportation costs, utilities, textbooks or other teaching supplies needed to run a school district. We also use some operating funds for the maintenance and upkeep of facilities. However, funding larger projects and new construction would demand too much money from our operating fund. That is why bonds are used. Money from bond Issues can only be used for capital (building) projects.
QUESTION: Will any of the bond issue funds go toward areas other than building needs?
ANSWER: Although building needs are important, many people are more interested in finding the funds to hire experienced teachers of exceptional quality to educate their children.
Bond issues allow Bayless to free money from our annual operating budget to provide for needed building maintenance and capital improvements, so we can keep a higher percentage of our operating budget to pay for teacher salaries and benefits.
The state of Missouri makes it very clear that the money from bond issues can ONLY be used for capital expenditures such as: building new schools, school renovations, and technology costs. By law, bond funds MAY NOT be used for operating expenses such as: salaries and benefits, transportation costs, utilities, textbooks or other supplies.
QUESTION: Why do schools ask to issue bonds in order to borrow money?
ANSWER: Bonds provide a way for the school to get a low interest loan which is funded by outside investors. School bonds are very attractive to investors because it is very unlikely that a school would default on a loan. In particular, Bayless School District has a AA- bond rating which is among the very highest earned. Bonds are interest sensitive. Right now, interest rates are very favorable to schools seeking bond money.
QUESTION: What happens if the bond election is unsuccessful?
ANSWER: The overcrowding and inefficiency of our High School and Junior High will continue. In addition, young families who might consider moving to Bayless may choose to find housing in a neighboring district that provides better facilities for their children. Issues with our buildings will not go away by themselves. Eventually, a larger bond issue and, perhaps, a tax increase will be required to do major repairs and construction.
QUESTION: Why is Bayless' assessed valuation so low?
ANSWER: Assessed valuation represents the total value of all real-estate in our district. Bayless is a geographically smaller school district, covering about four square miles. Our district is mostly single-family houses, with few commercial buildings and almost no industry. These are very desirable attributes for a neighborhood. Bayless is an attractive and affordable community for home buyers.
QUESTION: Why doesn't Bayless merge with another district?
ANSWER: Over the years, some have argued that "bigger is better" when it comes to school districts. We disagree. Bayless benefits greatly from true local control. Our superintendent, principals and Board of Education members are known by most of our parents. In addition, our school size allow students to obtain a personalized education, where virtually all students know, and are known, by their classmates and faculty. From a financial standpoint, any merger with another school district would not necessarily involve a tax break. Finally, any merger would require approval by voters of any district involved in merging.
QUESTION: What happens if the tax proposals are unsuccessful?
ANSWER: If the Prop. 1 Bond Issue does not pass, Bayless will soon not have classroom space to properly provide services to its Junior High and High School students. As a result, young families who might consider moving to Bayless may choose to find housing in a neighboring district that provides adequate facilities for students. In addition, families already in Bayless may choose to leave. Issues with our buildings will not go away by themselves.