Prop Warrior F.A.C.T.S.

The Winfield R-IV School District would encourage everyone to get out and vote on April 2nd.

On this year's ballot will Warriors F.AC.T.S, which is a $14 million NO TAX INCREASE bond issue for the school district. This no tax increase will not change the current tax rate for the school district whether it passes or doesn't pass.

Based upon budget and needs of the district, we have identified the following as potential projects:

-A new Performing Arts Center at the High School

-Renovation of elementary building for expansion of Early Childhood

-New heating and cooling units (HVAC) throughout district

-Improvements to the sports complex

-Prepay existing lease financing

-Other improvements around the district including roads and parking lots

If you have any questions regarding the bond issue, please contact superintendent Rod Hamlett at rodhamlett@winfieldriv.us

Frequently Asked Questions

1. What is a bond issue?
A general obligation bond issue is a traditional way for schools to borrow money to pay for major
school maintenance and repair projects, such as replacing old roofs or HVAC units or making
upgrades to worn-out areas.

2. How does a bond issue work?
When voters approve a bond issue, the Winfield R-IV School District is authorized to borrow
money. After selling the bonds, the district uses the funds to complete the capital projects and
pays back the debt over time. 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. A certain amount of your regular income is
budgeted to make those payments.

3. How do schools use bond issues to benefit students?
Bond issues allow schools to pay for costly repairs and renovation over time instead of having to
pay all at once. They also allow schools to devote most of their day-to-day operating budgets for
classroom instruction instead of major repair work.

4. How can we complete these projects without raising taxes?
Each year, the school district pays off old debt from previous bonds. As our loan balance
decreases, we are able to borrow more money and pay it back using revenue from the existing
tax rate.

5. What would happen if Prop Warriors F.A.C.T.S. does not pass?
Some maintenance and repair work would have to be deferred and most school renovation
projects would be postponed indefinitely. The most critical maintenance and repair needs would
still have to be addressed. To pay for this, more money would have to be spent from the day-to-
day operating budget (the part that normally pays for classroom instruction, teachers, staff and
supplies).

6. If the Proposition does not pass, will our tax rate go down?
No. Whether the proposition passes or fails, the tax rate will remain unchanged.

7. Can the funds be used in any other way?
No. Money from bond issues can only be used for capital expenditures such as major
maintenance, repair, and renovation costs. The repayment of Bonds comes from the District’s
debt service fund, which can only be used for that purpose. Revenue from the debt service fund
may not be used for operating expenses such as salaries, benefits, transportation costs, utilities,
textbooks, or other supplies.

8. What is a general obligation bond and how does it relate to the financing for this project?
Under Missouri law the only way a School District can legally borrow money for school facilities’
improvements or construction on a full faith and credit basis is to seek voter approval of a
general obligation bond issue. A “general obligation” means that the School District can and
must levy sufficient taxes to repay the principal and interest associated with the bonds. With
voter approval of at least a four-sevenths (57.143%) majority at the April 2, 2024 election, the
District can then sell the $14,000,000 of bonds in increments of $5,000. This financing process
gains access to numerous investors at favorable terms compared to what would happen if the
District were dependent upon a single lender to supply the funding. The interest earned by the
investors is exempt from federal and state of Missouri income taxes. With the interest being
tax-exempt, the actual rate the District must pay is much lower than would otherwise be the
case for a typical loan. Based upon current interest rates in the municipal bond market the
average interest rate is expected to be 3.50% - 4.00%.

9. How can the $14,000,000 general obligation bond issue be referred to as a no-tax rate
increase program?
The current $1.5755 debt service fund levy is adequate to repay the existing bonds plus the
$14,000,000 of new bonds by extending the levy by four years or less (from Fiscal Year ending
2040 to 2044), but not increasing it above the current level. This is feasible due to growth in
assessed valuation, interest savings totaling $5,439,109 from previous bond refinancings, and
prepayments of principal since 1998.

10. Can the District pay the bonds off early to save interest expense?
Yes, the bonds will contain optional redemption (call) features that enable the District to prepay
them at no penalty in the event fund balances become large enough for that to occur. The call
feature also provides the District the opportunity to refund the bonds to take advantage of lower
interest rates in the future, if the overall economic conditions create that set of circumstances.

11. Will local investors have an opportunity to purchase the Bonds?

Yes, as a part of the marking process, L.J. Hart & Company will market the bonds to local banks
and financial institutions. The interest earned by the investors is exempt from federal and state
of Missouri income taxes.

12. What type of rating will the general obligation bonds have?
The District can expect to receive an AA+ rating by S&P Global on the general obligation bonds.
Missouri school districts issuing general obligation bonds for construction purposes are eligible
in most cases to participate in the State of Missouri Direct Deposit Program. This program
provides each issuer with an AA+ rating at no additional cost to the District.

13. How do I register to vote?
The election will be held on Tuesday, April 2, 2024. Polls will be open from 6 a.m.-7 p.m. The
deadline to register to vote is March 6, 2024. Registration forms and absentee ballots are
available at lcclerk.com. Absentee voting is available in person until 5:00 p.m. on April 1st at the
Lincoln County Clerk’s Office, 201 Main Street, Troy, Missouri 63379.