FAQ

What is a bond?

A bond is essentially a loan. When you vote yes, you are agreeing that we, the taxpayers, will pay back a loan that the school district will take out. With a bond, there are origination fees and interest charged.  The cost of the origination fee and the bond for the projects will be about $9.4 million.  The rate of interest on this bond is expected to be about 2.87%.

Why now?

A majority of the people who responded to the District community survey of February 2018 indicated they wanted the school district to do something about our facility needs as soon as possible or within the next 2-5 years.
Many of the projects are urgent needs. If we do not preemptively address them now, we may need to address them in an emergency, which will cost more and be more disruptive to student learning. 

Also, the cost of construction rises each year, so these same projects will cost more if we wait. 

Didn't we just approve a school tax in 2016? 

In 2016, the community approved an operating levy.  The operating levy helps pay for the day-to-day costs of educating kids--classroom materials, teachers, and technology.  

This building bond specifically asks voters to support building projects. 

Both require voter approval, but the funds from the 2016 levy cannot be used for building projects, and the funds from the 2018 bond could not be used toward the ongoing costs of classroom instruction. 

Where did the $9.42 million amount come from? 

The district will borrow up to $9.42 million.  This amount was the total cost of all the projects the district has identified on their website at winonaschools.org/referendum2018 The amount for the projects includes a 25-30% safety margin to allow for problems they may find once they start opening up walls to address plumbing, electrical, and asbestos. The district does not have to borrow the full amount (they will likely reduce it by the amount of the W-K safety grant, about $300K). If the projects cost less than the estimate, they can use the money to pay down the debt sooner and decrease that per month tax, or they can pay for another building project that is similar to the ones listed on the ballot.

How does $3/month on a $150,000 home for 4 years pay for a $9.42 million bond? 

After 20 years, the middle school bond will be paid off this winter.  The tax for this referendum would collect the same amount that had been paid per property on the middle school bond, plus that additional $3/month on a $150,000 home.

I'm seeing other amounts than $9.42 million, can you explain that? 

$9.42 million is the cost of all of the projects identified by the district plus the cost of originating the bond and is what is listed on the ballot, because interest fees cannot be predicted with 100% accuracy. 
The bond will likely cost up to another $700,000 in interest, meaning the total cost would be somewhere around $10.1 million. 
The district received a $316,447 safety grant to pay for the W-K vestibule that had been part of the referendum list.  This amount will likely be subtracted from the amount the district will borrow, making it $9.1 million.  It is too late to change the ballot language to reflect this. 

The estimated cost per property will pay for both the bond and the interest. 

How do we know that they'll really spend the money the way they say they will?

The language on the ballot is like a contract between the taxpayers and the district. You'll notice that the ballot lists many projects. The amount of the bond is the sum of the projected costs of all the projects (detailed at winonaschools.org/referendum2018). The district legally cannot spend the money on something that isn't listed on the ballot. 

Related note: the language "Acquisition and betterment of school sites and facilities" was required by the State of MN.  The district would have preferred language indicating that they will acquire materials and pay for labor that would improve school sites and facilities.

Why don't they just find a way to fit this in the budget? Couldn't they have planned for these costs? 

School districts in Minnesota often turn to their local citizens to help with building needs.  The state money restricted to buildings pays for things like kitchen health inspections and recharging fire extinguishers in addition to building maintenance, and it's not enough to address larger projects. The state also provides some unspecified spending that most districts spend on students--extra class sections for large grades, more resources for students, and, in WAPS' case, busing students from one mile away from school instead of the state-mandated two miles.  To use this funding for large projects would mean cutting back on that other use of funds.

Why should we agree to pay for this bond?

Voting yes to this question simply means you do not want to continue to ask kids in wheelchairs to go in the back door. That you think 1930s plumbing and electrical work is due for an update.  That you think a high school parking lot that serves students, our community, and visitors to our community should not be crumbling. That you feel minimum security for school entrances is not enough protection for our children. 

This is our chance to do something real now--a small step toward keeping our schools strong. 

But we already paid for the security camera entrances...

The cameras at entrances are a small part of the security for the buildings.  While the district paid for them out of the general fund, they also approved paying back the general fund for their cost if the bond passes. The bond funds will also make sure that visitors must check in with the office before they continue on into the building.

The estimated cost for the projects is high.  
Didn't a couple recent projects come far under the estimated cost? 

The district cannot know the cost of all possible complications for a project. They cannot go back and ask the community for more money for the same project if, for example, the masonry around the door frame crumbles when they try to replace the door, and they have to replace the masonry. So they estimate more than the average expected cost of a project. Some projects will likely be less than estimated.  Some may be a bit more.  Any money remaining after all the listed projects are completed (see ballot language below) can be used to pay down the bond.

But I don't have kids in public school...

Public school students will grow up to be our local economy--working in the banks, the hospital, the senior care facilities, the many business that keep our community vibrant.  A safe and healthy school environment means fewer distractions, which means better education for our future neighbors and fellow citizens. Even if they leave the area, they will carry the legacy of our community with them.