How much of LSR7's budget is funded locally?
Local funds make up approximately 2/3rds of the Lee's Summit R-7 Schools budget.
What is the district's current property tax levy?
The district's current overall property tax levy of $5.31 per $100 of assessed valuation includes the operating tax levy and the debt service tax levy. The current operating tax levy ($4.24) funds operational expenses, such as teacher and staff salaries, supplies and equipment. Current debt service tax levy ($1.07) funds are used to pay interest and principal payments for general obligation bonds issued for voter-approved bond projects.
What does the April 4, 2023 ballot language mean?
When debt service levy transfers appears on the ballot, the district is asking voters: Can we shift existing tax contributions from one levy to the other without changing the overall tax rate? The April ballot reflects the district's intention to increase the operating tax levy by 20 cents and decrease the debt service tax levy by the same amount to ensure no net impact to the overall property tax levy.
What is the purpose of the levy transfer?
The Board of Education's decision follows the review of salary data from surrounding school districts, in addition to input from district stakeholder groups including the Citizens’ Advisory Committee, Business Roundtable, Team Lee's Summit and district staff.
The levy transfer is designed as a no tax rate increase approach to ensuring the school district can offer competitive staff compensation during a time of high inflation and stagnant state funding for preK-12 education. In recent years, neighboring districts have taken voter-approved actions such as levy transfers and increases to invest in salary schedules, and LSR7 has fallen behind in starting pay for teachers and other positions. Reallocating additional revenue to the operating fund would allow the district to increase staff compensation as part of the district’s goal of recruiting and retaining quality staff.
What process will the district use to determine salary recommendations for staff?
Salary recommendations in the Lee’s Summit R-7 School District are made each year by a representative group of employees before being presented to the Board of Education for consideration each spring. This collaborative process will determine the allocation of additional revenue for salaries should voters approve a levy transfer in April.
How much revenue would a levy transfer generate for the operating fund?
Shifting $.20 from the debt service levy to the operating levy is a budget reallocation that redirects approximately $5.4 million to the general operating fund on an annual basis.
Why does ballot language reference an increase?
The state requires school districts to ask for permission from our voters to move money from our debt service fund to our operating fund. Our ballot language proposes an increase of $.20 to our operating levy and a corresponding decrease of $.20 to our debt service levy to ensure no overall impact to the current property tax levy.
What is the impact of decreasing the debt service levy?
The debt service levy supports future facility needs by providing funds to pay down the general obligation bonds issued to cover capital projects such as new schools and building renovations.
While a levy transfer impacts the district’s future bonding capacity — how much the district can borrow in the future for bond projects — assessed valuation and growth projections indicate that LSR7 is in a strong position to cover its anticipated facility needs with a lower debt service tax levy.
Does approval of the April ballot item impact the district's ability to pay its existing debt?
No. Voter approval of a levy transfer does not change the terms or rates associated with previously issued debt. Because of responsible long-range debt planning, the district has adequate funds to cover its existing debt and will maintain its high AA+ bond rating.
What kind of voter approval is required?
Debt service levy transfers require a simple majority for voter approval.
When is the deadline to register to vote?
The deadline to register to vote for the April election is March 8, 2023.
