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Web posted
Tuesday, February 26, 2008
Bond issue numbers questioned
By FOSS FARRAR
Traveler Staff Writer
reporter@arkcity.net
City Commissioner Joel Hockenbury addressed the local school board Monday night, questioning the tax impact numbers in a school district brochure on a $35.8 million bond issue now before voters.
Hockenbury said that he is impressed with the school improvements made since a previous Arkansas City Public School District bond issue in 1996, but that he is "confused from figures in the brochure on the amount of tax" to the average homeowner if the current bond issue were to pass.
He questioned whether the $35-per-year cost to the average taxpayer in the school district was an accurate number. "When I figured it, it appeared to be substantially higher," Hockenbury said.
School board member Mike Walker responded that he was aware that the city had asked for the true cost of the bond and that the information provided by the district was accurate and "blessed by the state Board of Education."
"You're the first person I'm aware of that has voiced concern," Walker said.
Hockenbury addressed the board during a brief citizens forum opportunity that is made available at the start of each board meeting. Last night's meeting was held at the Lincoln school for early childhood programs.
Hockenbury said after the meeting he was speaking on the tax issue not as a city commissioner but as a private citizen.
In his brief address, he also questioned the tone of a letter the school district sent to the City last December, just a few days before city commissioners rejected the idea of creating a Tax Increment Financing District at the north edge of town. Creating the TIF district would have paved the way for a new Lowe's store as the anchor for a new shopping center.
"When evaluating the proposal at the north end of town, we received a letter from the school board with concerns the development might impact the reduced lunch program," Hockenbury said. "It seemed that would be a negative criteria. I hope that came down differently."
Ark City Superintendent of Schools Ron Ballard said today that the district's letter was not meant to impede economic progress of the city.
"We're for and enthusiastic about economic progress in the city," Ballard said.
The letter taken in its full context was a request for information on the proposed shopping center, Ballard said. In that way it could prepare measures for the safety of students heading to and from school.
Ballard said other factors, like the free lunch issue, are part of school finance that aren't necessarily shared with all citizens of the state.
If a town has a tourist attraction, for example, it may bring growth but not new population with it and that could be tough for a school district and result in less state aid.
On how the bond issue would impact taxpayers, Ballard said public school finance has a different structure than that of a city, county or community college. City officials looking at the bond issue brochure may not be aware of some of the differences.
One factor that was taken into consideration in figuring the tax to the average homeowner is that the state will pay 50 percent of the bond issue cost, Ballard said.
"Many people don't know that the state share is expected to increase in future years," he said. The district has figured in those additional state aid factors in calculating the $35 per year cost to the typical local homeowner.
The mill levy for the 1996 bond issue passed by local voters has actually decreased 10.5 mills over the years because of state aid factors, Ballard noted.
Ballard noted that the district's bond attorneys and the state board of education has approved the estimated tax figures that were made public by the district.
Hockenbury said after the meeting he planned to meet with Ballard and district attorneys on the figures.
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