SJSD breaks down costs of Proposition Two

A bond proposal showing up on the April 8 municipal election ballots would allow voters to deny or approve a 60 cent tax increase.

The increase would be part of a potential 20 year bond to pay for the construction of two new high schools for the St. Joseph School District.

One thing SJSD is trying to explain to taxpayers, is how that 60 cent increase would affect the taxes they are currently paying.

"So if you have a $200,000 home...You do not pay the taxes on the $200,000," said Dr. Gabe Edgar, SJSD superintendent. "You pay taxes on the residential cost and what that is, which is 19%."

The monthly expense for the levy increase on a $200,000 home would equate to $19.

The formula also does the same for personal, commercial and different types of agricultural property. 

If approved, SJSD's debt service would also raise from 50 cents to $1.11. 

Although the tax levy is calculated for 20 years to support the bond, Edgar believes it won't last that long. 

Right now, ballot language for the April election suggests the levy is for one high school. 

Edgar said, having the specific ballot language is just one-step in the different elements that play into the implementation of the two high school plan.

"The cost and the reason why we can't put two on the ballot at same time, is because our bonding capacity is not large enough," said Edgar. "Right now, you see the cost of what we're putting on the ballot is $157 million. And, I would anticipate the next time around. You know, you're looking at five, six years down the road, you're looking at $180 million, $190 million."

Some contributing factors for the specifics of the tax, has to do with the economy. 

"We looked at this back in 2019, we're talking less than $100 million," said Edgar. "It's not going to get any cheaper, and you know, the students at the St. Joe School District deserve it."

A proposition for a second high school wouldn't be added to ballots until after the construction is finished for the first high school. 

"Now, if they are progressive and make pre-payments, I would anticipate you could look at something in 2031," said Edgar. "So you're going to have one built on the ground in the fall of 2028 and then two to three years later, you'll be talking about the next."

Edgar said he understands the communities reservations when it comes to paying more taxes, however, notes that the increase will benefit students in many ways. 

"There's a lot of give and take," said Edgar. "But I think just bringing the learning to the 21st century, we're behind in a lot of areas. This will allow us to kind of, pole vault into the future, so to speak."

If the proposition is approved, Edgar said ground would be broken for construction this next summer. 

News-Press NOW will continue to provide more in-depth reports about Proposition Two ahead of Election Day.