James believes Prop W would provide necessary improvements without raising taxes

By Neal A. Johnson, UD Editor
Posted 1/31/24

LINN   —   Linn R-2 Superintendent Bob James is confident in the district’s plan to secure bond funding through Prop W in the April 2 election.

“The best part about …

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James believes Prop W would provide necessary improvements without raising taxes

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LINN    Linn R-2 Superintendent Bob James is confident in the district’s plan to secure bond funding through Prop W in the April 2 election.

“The best part about this is that we’re not looking to increase our tax rate for this,” said James, a 1994 graduate of Linn High School. “There is an optimal debt service tax rate for schools. Prior leaders in the community and the school boards were very forward-thinking in adopting $1.05. Our debt service rate is actually designed to bond every five to seven years. That $1.05 is the formula answer to how you can continue to progress, take care of your facilities, and build and maintain what you need. It’s the gold standard, and we already have that here. It’s worked. I don’t want to change that at all. Regardless of whatever people believe is the impetus for whatever you believe the condition of our economy is, I think anyone would argue they would like to have more money and spend less, so I’m not interested in moving forward with anything that would increase our tax rate to take on the projects.”

James noted the name of the bond issue was almost “Question” instead of Prop W. “I almost made a mistake when we had the bond language created,” he said. “In my ignorance and inexperience, I didn’t realize that that is when you name a ballot measure. When they say ballot language, they literally mean what’s written on the ballot that people will fill out.”

The weekend after board members approved the project, James thought about the next steps, and curiosity reared its head. “What are we going to put on yard signs? That’s important because I want people to understand what we’re trying to do based on the yard sign,” he added.

Drawing on experience in Jefferson City when a ballot measure was proposed to fund Jefferson City and Capital City high schools, James recalled the signs read, “J+C,” which he said generated interest in the project.

That led to Prop W, which has a dual meaning. “We want people to think of W for Wildcats, but it’s also W for Win because we believe this will be a win for our kids,” said James. “In addition to yard signs and other outdoor materials, we’re going to create trifold flyers we can hand out that explain everything we want to do.”

Here’s the official ballot language:

“Shall Osage County R-II School District issue its general obligation bonds in the amount of $9,500,000 for the purpose of acquiring, constructing, improving, repairing, renovating, furnishing and equipping school facilities and sites, in order of priority:

• Safety and security improvements at the Elementary School

• Construction of a building that allows for the removal of Middle School students from the Fieldhouse basement

• Installation of a cooling system at the Fieldhouse

• Site improvements of District driveways and parking lots

• Upgrades to playground equipment at the Upper Elementary School

• Improvements to athletic facilities

• Acquisition of property currently leased by the District?

If this question is approved, the District’s debt service property tax levy is estimated to remain unchanged at $1.05 per one hundred dollars of assessed valuation of real and personal property.”

James explained the items included as priorities are dependent on funding. “We would love to do everything on that list, but we have to be responsible stewards of the community’s funds,” he added.

Linn Elementary’s safety and security are the top priority. James noted the plan would be to enhance current security measures. “We do have some things in place, but we want to add a secondary layer to protect our students further,” he said, though specific details will not be publicized beyond installing additional cameras. “All schools think about how you improve security and maintain a welcoming atmosphere. In this case, my argument would be that we’re going to have to work on that, but we’re just prioritizing safety.”

A steering committee of about 30 people representing local businesses, the community, and the district has worked with the school board and administrators to prioritize projects. The only exception was moving students out of the fieldhouse basement. “The school board led that, but the steering committee agreed with the priority,” said James.

He noted that when the Thurman Willett Fieldhouse was built in 1968, there was no plan to teach students in the basement. “Many people don’t know that the original plans had a separate building that just had classrooms,” said James. “Most people don’t know that it was after construction costs mounted that (board members) said, ‘You know, we could really get those same classrooms if we just converted what was intended to be a dirt floor basement,’ where we have middle schoolers now. The original plan was a dirt-floor basement with mechanical, electrical, and plumbing. That’s what it was for. The original building, where we have the oak tree with the Wildcat, would have been right up against the wall where we have board meetings now.”

James acknowledged that generations of students have studied in the basement. “Economic circumstances dictated what they had to do, and they made the most of what they had,” he said. “It’s worked pretty well, but we need to make a change for several reasons. God forbid we have any real emergency out there. We have two narrow four-and-a-half-foot corridors and one exterior hall that runs directly into the exterior of the elementary. So, we have some very objective and fundamental reasons to prioritize kids coming out of there.”

James likened the need for improvements to personal advances. “I’m definitely not driving the same car I did in the 90s,” he said, adding the same is true of farmers, who as a collective are not using the same equipment as those in 1968. “I think the tools we used 50 years ago are not remotely the tools that we should be using now. I honestly think our families are going to get that. Again, this will not have an impact with a no-tax-rate change. If we can do it within the confines of our current budget, I think we’ll be supported very well; at least, I feel that way, having returned to Linn. I feel our community supports us a great deal here. We’re going to work on getting the kids out of the basement. That will look like an addition to the high school building in some way. The lead horse that came out of the steering committee was a connector between our current Ag building and the high school. That seems to be the most popular, but we’ll get some additional feedback from the community.”

James added that he intends to reach out between February and April and provide information to anyone who wants it. He offered to visit clubs and civic organizations to outline the district’s plan.

Another priority is cooling the fieldhouse to mitigate very hot summer events such as graduation. James said he received various HVAC bids, ranging from $800,000 to $2 million. It will come down to cost and the type of system put in place.

“I think when most people hear we’re putting air conditioning, they think of it like their home,” he said. “It’s 72 degrees in here, so I’m going to set it to 70. And then, in a few minutes, it’s going to be 70 degrees. And here, meanwhile, as a dad, I’m saying, ‘Hey, why don’t you take off the hoodie, buddy? How about you put it on a pair of shorts? I’m looking at it as a way to reduce costs at home.”

It doesn’t work that way at the fieldhouse. “The reason that we phrased it as a cooling system and not HVAC is because we won’t have the touch-point control we have in our home,” said James, noting that the system would cost $2 million. “When you’re looking at a budget, $2 million would be about 22% of our total bond just for HVAC, so we’re going to look at options, from most expensive to least expensive. The less costly options are systems that would remove humidity from the air. A drier heat seems to work for people in Arizona. Then there’s air circulation. We will end up somewhere between removing humidity and improving air circulation, and probably that touch-point control. Bids will tell us where we fall.

“We don’t want our community to sit at graduation over a towel that was soaked when they left because they’re sweating so bad,” James added. “We want to cool the air some way; that might mean that instead of 93 degrees in there, it’s 78. It might not be touch-point control, but it is mitigating the heat in some way.”

James noted that driveway and parking lot improvements are important as the district continues to improve its facilities. “We have run into issues with parking during football and track,” he said, adding the steering committee and board members are considering options to create additional parking areas.

He is also considering long-range changes to the ball diamond and building a concession stand between the field and track for easier access by fans.

In the long run, James believes attendance will continue to grow at sporting events. “We’re going to put more butts in seats in the next 20 years,” he added. “That means we’re going to have to add more seats so our parents, students, and fans can cheer on our softball and baseball teams.”

As previously reported, the board agreed with James’ recommendation to use a lease purchase plan to improve the track facility. “The reason I would even look at a lease purchase is because we are limited by statute to borrow 15 percent of our assessed valuation, which is at $84 million and some change,” James noted at the November meeting. “That puts us at about $12.6 million (we can borrow), but we owe money on the elementary building, and that limits what we can bond.”

The loan is financed through the Missouri Health and Educational Facilities Authority (MOHEFA).

Board members agreed to use the firm of Stifel, Nicolaus & Company of Kansas City as the bond underwriter and the firm of Gilmore & Bell, P.C., of Kansas City, as bond counsel.

In November, Stifel Finance Managing Director Joe Kinder told the board that the school would only pay Stifel Finance if bonds were issued. In that case, the Jefferson City financial company would auction bonds to 400,000 investor accounts to gain the highest possible price in $5,000 increments.

Regarding debt service, about 90% of revenues come from locally-assessed valuation. “We try to accurately project your assessed valuation because we don’t want to get you in big trouble and have you pay off a bunch of debt you can’t get back,” Kinder said in November. “We also don’t want to leave money on the table by being overly conservative.”

Kinder said he prepared bonding scenarios for the next two years, with $9 million in 2024 and $7 million in 2029. “That is going to allow you to pay back the bonds and have projected growth in the debt service fund of 2.9 percent,” he added.

After the initial five years, the district would be set up to run another bond issue every 5-7 years for $6-$8 million to recoup bonding capacity over time. In the next 10-12 years, Linn could have a capacity of $20-$25 million for improvements.

As it stands, the district has long worked on a base operating tax levy of $2.75 per $100 assessed valuation. “We are at the state minimum, and I understand why,” said James. “I won’t gig our community. When taxpayers were betrayed, their confidence was broken. All they can do is say, ‘I’m gonna give you the minimal amount necessary so that you can’t do that again,’ and I get that.”

James added that is the very reason the district needs its debt service levy of $1.05.

“Our operating levy is the minimum wage for a school district,” he explained. “So, if we were to hire a new school district, as a community — I’m talking as a superintendent here — if we were to put an ad in the paper that said, ‘looking for a new school district,’ the salary we would need to put in there is minimum wage. You can do some things at minimum wage; I don’t know that you can do extraordinary things at minimum wage. What I hope to do with our current operational tax rate is regain the confidence in our community.”

James acknowledges the district has faced scrutiny over the years from the public because of indiscretions but believes the community supports Linn R-2. “Maybe I’m being naive, but I think they’ll support us,” he said. “What we have to do with this bond is show them what we can do when they give us an opportunity. We can never play with trust. We want to do extraordinary things. The best way to destroy any opportunity to do that is for the people you’re trying to do it with not to trust you. I am more than a bit anxious about making the most of every copper penny that we could possibly get from this bond election. I want every visitor to say, ‘Wow, man, look at what they’ve done. I can’t wait to see what we’re doing next.’ This bond is part of a 20-year long-range plan for facilities. Board members and I understand that if we don’t do well with this one, you forget about phase two and phase three.”

Prop W will be the only issue for Linn R-2 on the April 2 ballot. “We truly believe this is in the best interest of our long-term goals,” said James. “It’s a ‘Win’ for everyone because no one’s taxes will increase for substantial progress.”