Frequently Asked Questions

These questions and answers are from the initial election in 2023 and are included here for historical context. Proposition 3 PASSED with 66.3% of voters supporting the measure.

With Prop 3, Rockwood is planning for a fiscally responsible, debt-free, dedicated funding source for safety, technology and facilities.

Rockwood looks to fund this type of school maintenance without increasing the tax rate or issuing a bond issue referendum. It’s a long-range plan that would essentially result in a transfer of funds from Debt Service to Capital Projects to pay for annual needs.

What is Prop 3?

Proposition 3, if passed, would authorize the district to increase the Operating tax levy in the Capital Projects Fund by $0.54 over two years. The district would concurrently reduce the Debt Service levy by $0.54, resulting in zero-tax-rate increase.

This zero-tax-increase levy transfer would be done in two phases over a two-year period, resulting in over $26 million in annual operating funds when fully phased in. Prop 3 would provide this dedicated annual funding source without issuing new bonds, which is a fiscally-responsible use of taxpayer dollars in the current interest rate environment.

Prop 3 will appear on the November 7, 2023 ballot and will require a simple majority (50 percent + 1) to pass.

The dedicated funds would be used for ongoing safety, technology and facility updates at every school (including Early Childhood, the Center for Creative Learning and the Pathways Wellness Center) as well as additional buildings like transportation and support facilities. Examples of ongoing updates include:

  • Security cameras
  • Security systems
  • Radio communications
  • Device upgrades for students and staff
  • Cybersecurity and data protection upgrades
  • HVAC
  • Roofing
  • Flooring
  • Parking lots
  • Playgrounds

These funds may NOT be used for daily operating expenses (i.e. salaries, utilities and supplies) or for new facilities or significant additions to existing facilities. Our cycle maintenance addresses 37 buildings that cover more than 3.8 million square feet across the district (the equivalent of three Busch Stadiums), all of which require maintenance on a regular schedule that costs approximately $30 million each year. The average age of our schools is 47 years old. There are only two schools that are less than 20 years old (Eureka Elementary and Fairway Elementary). Nineteen (19) schools are between the ages of 44 and 85 years old.

While the needs of our facilities as well as technology and safety will constantly change, we currently forecast that approximately 20% (or $6 million) of the Prop 3 transition of $0.54 cents will be allocated to technology for student, staff and infrastructure refresh when the transition is fully phased in and 5% (or $1.5 million) will be allocated to safety hardware and equipment needs. The remaining 75% (or $19.5 million) will be allocated to our facility cycle maintenance needs that would include, among other items, HVAC, roofing and hard surface paving. The allocations could certainly change between years based on the needs and priorities within these three areas.

Safety

When addressing safety needs and prioritizing safety, we carefully consider the impact on students and staff. We also look at areas where we have gaps. For example, our current radios do not have the capability to communicate outside of the school. Purchasing radios that would enable us to communicate across the district in an emergency, particularly in areas where we may not have optimal cell coverage, has been identified as a priority.

Technology

Technology expenditures are prioritized based on classroom technology equipment standards and the establishment of refresh cycles for staff devices, student devices and technology infrastructure. These standards and refresh cycles are created with input from the Rockwood community and established industry guidelines. For example, students in 5th grade typically receive new Chromebooks to use throughout middle school and students in 9th grade typically receive new Chromebooks to use throughout high school. That refresh did not happen last school year and will not happen this school year.

The Technology Department also researches current trends and new technologies that could enhance the learning environment for teachers and students.

Facilities

This is done through an annual facilities review as part of our Five-Year Forward-Looking Capital Plan. Members of the facility and finance teams visit and visually inspect each building every fall and speak with building leadership about facility needs, which are subsequently prioritized based on a variety of factors.

For school districts, funding for the acquisition and improvement of capital assets is either in the form of issuing general obligation bonds (long-term debt) or having a dedicated operational tax levy in the Capital Fund. When a school district issues general obligation bonds, the district receives the proceeds of the bonds and agrees to pay back the bondholders, normally over the course of 20 years. Payments to the bondholders include the borrowing costs in the form of interest. When a school district has a dedicated operational tax levy in the Capital Fund, the district receives the levied taxes each year and has the ability to address its safety, technology and cycle maintenance needs without incurring interest costs.

This long-term plan was initially discussed in 2014, crafted in 2016 and embedded in the district’s strategic plan, The Way Forward, in 2018.

The zero-tax-rate increase levy transfer has been a part of a four-step plan to reduce debt and maintain the district’s safety, technology and facilities on a pay-as-you-go method. We are currently at STEP 3, and the passing of Prop 3 authorizes the district to proceed with STEP 4.

  1. STEP 1: Continue to pay down our existing bond issue debt.
  2. STEP 2: As the district addresses ongoing capital improvements, the debt will be layered so the total principal and interest payment can be made with a lower tax rate.
  3. STEP 3: When the tax rate is able to be lowered, we will ask voters for permission to move these cents into our building fund, dedicated to the upkeep of safety, technology and the maintenance of our facilities. This move will not increase the tax rate.
  4. STEP 4: After voter approval, these funds will be moved to the building fund in order to pay for annual cycle safety, technology and facility needs.

If passed by voters, 36 cents would be moved from Debt Service to Capital Projects in tax year 2024, and 18 cents would be moved from Debt Service to Capital Projects in tax year 2025. In the first year, this transfer would generate approximately $17 million for safety, technology and facilities. The following year, once the transfer is fully phased in, the annual amount generated for cycle updates and maintenance would be approximately $26-27 million.

This would be accomplished without raising the district’s tax rate.

If passed, Prop 3 would be phased in over a two-year period beginning with tax year 2024 (generating approximately $17 million) and ending with tax year 2025 (fully phased in, generating approximately $26-27 million each year moving forward), allowing the district to address ongoing technology, safety and cycle maintenance needs without raising taxes.

Returning to a cycle of technology and safety refreshes and upgrades would be part of the annual use of these funds beginning with year one. From a facility cycle maintenance standpoint, our facilities team evaluates each building’s needs every year with building administration, updating the priorities at each building.

The priority projects that are on each school’s website are the current priorities that the passage of Prop 3 would allow the district to begin addressing. However, each year, those priorities and the timeline of when a project is completed may change for a variety of reasons.

In addition, if Prop 3 passes, collections in the Capital Projects Fund would not begin until December 2024. Facility maintenance projects, such as HVAC and roofing replacements, are normally completed during the summer when students are out of the building, so the first year of facility projects would likely not begin until the summer of 2025.

On May 18, at the Capital Planning Work Session, a presentation to the Board included this slide (see below) which generally outlines the allocation of funds for the first year (2024/2025).

Again, as we evaluate the needs in our buildings on an annual basis, this list may need to be adjusted. Please know that if Prop 3 passes, we will be sharing details on the district website as to the list of annual projects funded, beginning with year one, which will be the 2024/2025 school year.

How Will Prop 3 Affect Me?

By voting yes, stakeholders are not voting for a tax increase. They are voting to give Rockwood permission to move funds from Debt Service to Capital Projects to fund improvements for safety, technology and building maintenance, equipment and improvements. The ballot language is clear that this will not result in a tax rate increase:

...resulting in the total tax levy of the District to remain unchanged.

We would be transferring, penny for penny, from the Debt Service Fund to the Capital Projects Fund if Prop 3 is passed.

Here is a comparison from last year (2022) that shows the expenditure per student in Rockwood compared to other St. Louis County school districts. Given that the latest district rankings by Niche.com show that Rockwood is the fifth best performing district in Missouri and that we have one of the lowest per pupil expenditures, that demonstrates that Rockwood taxpayers are getting a lot of bang for their buck.

Other points of pride that demonstrate the level of education our students are receiving include that Rockwood has 34 Rockwood students representing all four district high schools who have been named semifinalists for the National Merit Scholarship Program. With 23 semifinalists, Marquette has the highest number of any school in the state of Missouri, public or private. Overall, Rockwood contributed nearly 12 percent of the 292 National Merit Scholarship semifinalists from Missouri this year. Also, the Rockwood Class of 2023 had 279 students who scored a 30 or higher on the ACT and 68% of students in the Class of 2023 earned at least one college credit during their high school career.

On Sept. 28, 2023, the Rockwood Board of Education voted to lower the district’s tax rate to $3.8907. This is a decrease of 25.76 cents from last year’s tax rate of $4.1483.

Within the overall rate of $3.8907, there are four rates that correspond to each of the four school funds: Incidental ($1.2967), Teachers ($1.8340), Debt Service ($0.6800) and Capital Projects ($0.0800). Because the Debt Service rate will decrease penny for penny (down to $0.1400 when fully phased in) as the Capital Projects rate increases (to $0.6200 when fully phased in) if Prop 3 passes, the overall tax rate will remain the same.

Rockwood is committed to professional, prudent and conservative financial management, which includes the involvement of community business leaders, taxpayers, parents, teachers, staff and administrators, with oversight by the Board of Education.

The Rockwood School District is the only district in the state of Missouri to hold all four of the following financial recognitions:

  1. AAA Rating with Standard & Poor’s. Rockwood is one of only four districts in the state to hold this rating.
  2. Rockwood has earned the ASBO Meritorious Budget Award for 23 straight years. It is currently one of only seven school districts in the state to receive the award.
  3. Rockwood has earned the Certificate of Excellence (COE) in financial reporting from the ASBO for 18 straight years. It is currently one of only four districts in the state to receive the award.
  4. Rockwood has earned the Certificate of Achievement for Excellence in financial reporting from the Government Finance Officers Association of the United States and Canada (GFOA). Rockwood has received this recognition for 18 straight years.

In addition, the district consistently receives a top-level (unmodified) opinion in our annual independent audits and the district’s director of finance has earned certification for fiscal credibility.

In the future, Rockwood may still pursue bond issues in order to fund large-scale special projects, such as the new Eureka Elementary that was finished in 2019. Our efficient management of projects funded by the bond issues passed by voters in 2015 and 2017 have allowed us to complete all of our planned projects around the district as well as a number of unplanned projects.

We continue to aggressively pay down our debt. We are reducing our debt by $34 million in 2023-2024, and we expect our debt balance at June 30, 2024 to be $86 million, the lowest since 1995. We were recently able to save taxpayers nearly $400,000 by refinancing some existing bonds, which brings the total interest cost savings through refinancing for Rockwood to more than $13 million over the last 12 years.

Rockwood would still need to fund $30 million in annual safety, technology and facility needs, so that may mean going out for another bond issue or raising taxes. We want to move away from utilizing bond funds for annual updates so that 100% of the proceeds can go to our schools instead of to banks in the form of interest. Prop 3 is a zero-tax-rate-increase using tax dollars it already receives to address those annual needs.

Why is Prop 3 Important for Rockwood?

The need is still there and is actually greater than it was last year, given the rise in interest rates.

Twenty-three percent of Rockwood voters cast a ballot in the April 2022 election and the proposition failed 51% (no) to 49% (yes). A post-election survey revealed that many who voted against it indicated they lacked information, didn’t understand the transfer or thought it was a tax increase.

The district could have come back this year with a bond issue to fund annual safety, technology and maintenance needs, but that would have cost taxpayers millions in unnecessary interest and it would be a short-term fix to an annual, ongoing issue. Rockwood has 34 schools and 3.8 million square feet of facilities that cost approximately $30 million each year to maintain. Reallocating tax dollars now being used to reduce debt to fund annual needs can be accomplished without increasing the tax rate and without taking on additional debt. It is a fiscally-responsible way to address those annual needs.

In Rockwood, we understand that updated technology and spacious, well-maintained schools are necessary to equip students with the tools for success. The passage of Prop 3 would provide a pay-as-you-go funding method for these ongoing needs, allowing Rockwood to be more efficient with the tax dollars we receive. With Prop 3, the dedicated source of revenue in the Capital Projects Fund would allow security and technology upgrades as well as ongoing maintenance projects to be completed without issuing long-term debt. The resulting avoidance of interest expense means that 100 percent of the tax dollars collected in that fund could be applied to our safety, technology and facility needs. In other words, a larger portion of your tax rate will go directly to our schools and less will go to banks in the form of bond interest.

While the needs of our facilities as well as technology and safety will constantly change, we currently forecast that approximately 20% (or $6 million) of the Prop 3 transition of $0.54 cents will be allocated to technology for student, staff and infrastructure refresh when the transition is fully phased in (tax year 2025) and 5% (or $1.5 million) will be allocated to safety hardware and equipment needs. The remaining 75% (or $19.5 million) will be allocated to our facility cycle maintenance needs that would include, among other items, HVAC, roofing and hard surface paving. The allocations could certainly change between years based on the needs and priorities within these three areas.

How Will Prop 3 Affect Rockwood’s Existing Debt?

As a result of strategic refinancing and aggressively paying down our debt, we are in a position to reallocate tax dollars from principal and interest expense (Debt Service Levy) to the district’s operating expenses (Capital Projects Levy) and address the immediate safety, technology and facility needs across the district. Moving to a pay-as-you-go funding method for annual items has been part of the district&rquo;s long-range financial plan since 2014. By law, we need to ask voter permission to reallocate these funds for a different purpose. Prop 3 would allow us to do so without raising the overall tax rate.

No, we will pay our existing debt within the current maturity schedules and the planned Debt Service Levy of $0.14, if approved, will be sufficient to satisfy those obligations. Reducing the amount of money that is going toward debt will not change the amount we pay in interest. Our interest cost on existing debt is fixed. We are always looking to save taxpayer dollars. In fact, Rockwood is proactive in looking to reduce its interest cost in the form of refunding or prepayments if the interest rate environment is favorable to do so. Rockwood has saved over $13 million taxpayer dollars in refinancing since 2009.

We are always looking to save taxpayer dollars. In fact, Rockwood is proactive in looking to reduce its interest cost in the form of refunding or prepayments if the interest rate environment is favorable to do so. Rockwood has saved over $13 million taxpayer dollars in refinancing since 2009. Here are recent examples of refinancing and what it saved taxpayers:

  • FY16 - $38.9 million refunding of existing debt, saving $3.6 million dollars;
  • FY18 - $26.7 million refunding of existing debt, saving $1.3 million dollars;
  • FY22 - $16.0 million prepayments and defeasance of existing debt, saving $4.1 million dollars.

The reallocation of the tax levy from Debt Service to Capital Projects will establish a funding stream for district safety and security upgrades, technology device and infrastructure refreshes, and facilities maintenance to fund these purchases without issuing bonds and incurring debt. This will result in both the avoidance of interest expense and more efficiencies in facilities management.

The Rockwood School District has paid over $40 million in interest expense over the past five years. Interest expense will continue to be incurred on bond debt that is already outstanding. However, no additional interest expense will be paid on purchases made with Prop 3 funding. The remaining debt service levy will still allow us to pay our remaining debt obligations on schedule with interest expense over the next five years on existing bonds around $14.5 million.

Rockwood’s existing debt is set to be paid off in 2038-2039. The debt service levy would only be reduced if the district didn’t incur any additional debt or issue any new bonds over the next 15 years. If Prop 3 fails, asserting the tax rate would go down is not realistic because the district has to maintain 37 buildings at a cost of more than $30 million each year, so the need will always be there.

The average age of our schools is 47 years old and our cycle maintenance addresses 37 buildings that cover more than 3.8 million square feet across the district (the equivalent of three Busch Stadiums or 66 football fields). It costs approximately $30 million annually to address the safety, technology and facility needs across the district.

Imagine buying a 47-year-old home and not expecting to do any maintenance on it for 15 years. That is simply not realistic.

Funds from the last bond issue (Prop T) passed by voters in 2017 were depleted by projects completed this summer. If we don’t have dedicated funding, we would need to continue to go to the voters for bond issues, which (if passed) would accrue additional interest.

Also, paying for significant new additions to district facilities, whether it be a large building addition or a new building, generally requires a bond issue for adequate funding. There are no current plans for significant new additions to our facilities. However, we simply cannot predict that there won’t be a need for additional facilities over the next 15 years when there will be a need for a bond issue, which would also prevent the Debt Service levy from decreasing.

The levy transfer is reallocating tax dollars the district already receives from debt service to capital projects that allow for effective long-term safety, technology and facility maintenance planning without incurring additional debt and paying interest. This will not affect the overall tax rate and is not a tax rate increase. Prop 3 is about transitioning to a dedicated funding stream to ensure 100% of the revenue received goes back into our buildings through safety, technology and facility maintenance needs without increasing the overall tax rate.

What Else Should I Know About Prop 3?

School financing is broken down into four fund categories. Each fund category can only be used for specific items under Missouri law. Each category has a coordinating tax rate that is set annually. Currently, the tax rate associated with Rockwood’s Debt Service Fund is more than necessary thanks to aggressively paying down the debt, higher assessed values and taking advantage of strategic refinancing opportunities to save taxpayer dollars.

The long-range strategic plan has called for a transfer of funds from Debt Service to Capital Projects, and that can only be done through voter approval.

Restructuring the tax rate will allow the district to allocate annual resources to safety, technology and facilities with zero change to the overall tax rate.

Rockwood has traditionally funded our safety, technology and cycle maintenance needs by issuing general obligation bonds. The current Debt Service levy of $0.6800 provides the funding for the repayment of principal and interest on our outstanding debt. Based on the higher interest rate environment and the responsible structuring 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.

Going to the voters for a bond issue every two to five years to fund annual safety, technology and facility needs is not a fiscally-responsible way to fund these types of expenses. Each election costs taxpayer dollars, regardless of the outcome. Each successful election involving a bond issue costs taxpayers millions of dollars in interest on those bonds to fund annual expenditures. In the last five years, Rockwood has spent over $40 million in interest on its debt.

Restructuring the tax levy, without raising the overall rate, is the most fiscally-responsible way to fund annual projects and ensure the district is being good stewards of taxpayer dollars. Missouri law dictates that the district needs voter approval in order to do that.

Additionally:

  • The district would still need to go to the voters for any new facilities or significant additions to existing facilities in the future.
  • Rockwood is the only district in Missouri to hold a AAA rating, the Meritorious Budget Award and two certificates of excellence for its financial reporting.
  • The zero-tax-increase levy transfer has been part of the long-range financial plan since 2014.

There is no expiration on the levy transfer because these annual needs will not go away. With a bond issue, “one-time” projects are identified and funded by the bonds. We are looking to fund ongoing safety, technology and facility cycle maintenance needs across the district on an annual basis, without borrowing funds and incurring interest.

Prop 3 does not provide funding to catch up on all projects, which will then no longer be required (and expire). Technology and safety updates will be ongoing as those items are ever-changing and improving. The life of a Chromebook is approximately five to six years, for example. With 3.8 million square feet of space to maintain, the district will continue to have needs with regard to facilities on an annual basis. Those needs include, but are not limited to, HVAC, flooring, roofing, paving, elevators and ADA lifts, as well as playground equipment. As our buildings age, there will not come a time when we no longer have to pay for these items.

Prop 3 provides only enough funding to allow the district to address ongoing annual needs to the tune of $26-27 million. It will do so without borrowing funds and incurring interest. We are simply reallocating tax dollars we are already receiving. This is the most fiscally responsible way to fund these ongoing needs.

School districts cannot receive a “windfall” when assessed values go up. Missouri school districts are limited to revenue growth by the Consumer Price Index (CPI) or 5% (whichever is lower), commonly referred to as the Hancock Amendment. In fact, at the Tax Rate Hearing in Sept., the Rockwood School Board LOWERED the district’s overall tax rate this year by $0.25 to $3.8907 to offset rising property values, as required by Missouri’s Hancock Amendment. This is the lowest Rockwood’s overall tax rate has been since 1990, and it is one of the lowest overall school district rates in St. Louis County.

Rockwood received a total of $11.4 million one-time funds approved through federal legislation to provide financial assistance during the COVID-19 pandemic to spend over the course of three school years. The funds were allocated and most of the allocated funds have been spent. We expect to spend our entire allocation of ESSER III funds by September 30, 2024.

Here is a comparison from last year (2022) that shows the expenditure per student in Rockwood compared to other St. Louis County school districts. Given that the latest district rankings by Niche.com show that Rockwood is the fifth best performing district in Missouri and that we have one of the lowest per pupil expenditures, that demonstrates that Rockwood taxpayers are getting a lot of bang for their buck.

Other points of pride that demonstrate the level of education our students are receiving include that Rockwood has 34 Rockwood students representing all four district high schools who have been named semifinalists for the National Merit Scholarship Program. With 23 semifinalists, Marquette has the highest number of any school in the state of Missouri, public or private. Overall, Rockwood contributed nearly 12 percent of the 292 National Merit Scholarship semifinalists from Missouri this year. Also, the Rockwood Class of 2023 had 279 students who scored 30 or higher on the ACT and 68% of students in the Class of 2023 earned at least one college credit during their high school career.

Registered Missourians who expect to be prevented from going to their polling place on Election Day may vote absentee beginning six weeks prior to an election. Options include voting by mail or in person. For additional details about absentee voting, visit the St. Louis County Board of Elections website or the Jefferson County Board of Elections website.