2023 District 7 Bond Proposal

Community Created Plan

Q: How was the community involved in developing this plan?
The plan that voters will consider was recommended by Engage D7, a citizens group made up of businessmen and women, teachers, staff, parents, and other residents interested in the District. In addition to the participants’ own input, the Committee consulted architects, engineers for additional information to help in its work. Participants met to learn more about the challenges facing the District to find solutions to improve District facilities. More than 250 individuals took part in the Engage D7 program this past fall.

The D7 bond proposal incorporates the recommendations provided by the community engagement participants and survey data, as well as the current financial reality and future outlook of the community and the District. 

This study concluded that District school buildings need repairs, safety improvements and other renovations. The recommendations included:

• Ensure funding is in place to allow for critically-needed projects to begin in 2024. 
• Ensure all D7 schools have up-to-date safety and security features, including secure entryways at every building.
• Proactively maintain and update building infrastructure items like roofs, windows, electrical systems, plumbing and HVAC systems.

For more information on how the D7 plan was developed, visit http://ecusd7.org/engage-district-7/

Bond Issue Projects

Q: What is the Edwardsville D7 bond issue, and what will it provide?
The Edwardsville D7 school board is asking residents to vote on a proposed $100 million zero-tax-rate-change bond issue on April 4.  If approved, the bond issue will address identified facility needs, essential safety and security upgrades and other identified critical maintenance needs and provide an improved learning environment for students. The Edwardsville D7 bond issue is a zero-tax-rate change bond issue and will not change the tax rate. 

Q: What specific building changes are planned?
All D7 schools will have improvements to address safety and security and critical building needs. If the bond referendum is passed by voters, the sale of bonds would provide D7 with the resources to begin the projects listed below:

• Secure double entries at all D7 schools
• A partial renovation and rebuild at Lincoln Middle School
• Remediation of asbestos and construction of new classrooms and gymnasium at Hamel Elementary School
• Complete repairs related to moisture infiltration and possible settlement at Midway Elementary School
• Complete an addition of 7,000 square feet to the Commons at Edwardsville High School

(*Secondary priority projects listed below to be completed after top priority projects listed above are completed)

• Updates and renovations to playgrounds at all elementary schools*
• Renovations to gymnasiums at Glen Carbon and Leclaire elementary schools*
•  Construction of a new gymnasium at Columbus Elementary School* 
• Renovations to the media center at Woodland Elementary School*
• Renovation and new location of the media center at Columbus Elementary School*
•  Construction of a new media center at Edwardsville High School* 

Click here for a complete overview of projects.

Q: Why does Lincoln Middle School need renovations and new construction?
In the summer of 2022, we engaged with a local construction firm to conduct a building analysis of all buildings within the D7 footprint. During that analysis, the firm discovered a collapsed sewer drain underneath the large gymnasium. After doing further analysis, the best path forward was determined to be a combination of new construction, demolition, and renovation of the existing building. This provided D7 with the opportunity to maintain the current location and neighborhood ‘feel’ of the building, remedy the issues discovered, and provide students within the Lincoln Middle attendance area with the opportunity to attend school in a new state-of-the-art facility.

Q: Why is Lincoln Middle School being renovated/rebuilt on the same site instead of building a new one on a different site?
This really stemmed from our community engagement sessions and listening to our community wanting to keep Lincoln at its current location because of its central location, walkability as well as its proximity to Woodland Elementary School. 

Q: What happens if economic conditions change and prices for projects increase?
The proposed bond issue addresses identified needs for the district, however the list could possibly be modified due to changing financial conditions. With today’s economy, if the proposal is approved by the voters, the District will be diligent to protect the taxpayer’s investment while completing the identified projects in the bond issue proposal.

Q: Beyond improving our schools, how will the bond issue help the community?
Public schools in our area go back for more than 159 years. For many generations, providing high quality schools has been a source of pride for us. Schools are the backbone of our community.  Improving our school building now will benefit many future generations of students and homeowners. 

Q: Why should we do this work now and not wait until later?
Just as homeowners must sometimes spend money to maintain their homes, the District must spend money to protect the investment that the community has made in its schools and neighborhoods. If approved, the bond issue will allow us to help protect the financial future of our District, continue to provide outstanding schools for our students, and allow D7 to remain a source of pride in our community.

Investing in updated and improved buildings will benefit many future generations of students and homeowners. The facilities will be more efficient to operate thus saving our District money. It is good financial and educational planning.

Historically, any type of tax question that has been posed to voters in D7 has not passed on the first ballot. In order to attempt to pass a no-tax increase proposal, we would need to place it on the April 2023 election, or the April 2025 election (there is no fall 2023 election and it would not likely pass in a general election year). As a result, we are proposing it be placed on the April 4, 2023 ballot. 

Finances/Zero-Tax-Rate Change

Q: How do school districts fund facility projects?
Issuing bonds is the main mechanism that school districts have to respond to two specific areas as it relates to funding major projects: growth and aging buildings. Anytime a school district issues bonds, there are multiple ways the district can structure the repayment. District #7 has continually worked to maintain a steady debt service rate while maximizing the availability of funds needed to either build new buildings or renovate aging buildings. Moving forward, the district will continue to restructure any debt accumulated through general obligation bonds or health/life/safety bonds so that our taxpayers do not see any fluctuations in the debt service tax rate and the tax rate for District #7 taxpayers is predictable while allowing the District to provide high quality facilities that meets the needs of our students and teachers.  

Q: Can you explain how this is a ‘no-tax increase’ bond issue?
Bonds which are issued for capital projects work much the same way a home mortgage works. The amount of bonds which are available for school districts to borrow is based on the overall assessed value of the school district. For K-12 districts in Illinois, 13.8% of the district’s assessed value may be borrowed for the purposes of capital projects. As of July 1, 2023, D7 had a borrowing capacity of $168 million with approximately $68 million in outstanding bonds. The district currently pays off approximately $15 million in debt service each year. 

 As far as repayment goes, bonds are structured so that certain percentages of the payment go toward the principal borrowed and certain percentages go toward interest. Bonds can be restructured much like you can refinance your house. By restructuring the bonds, D7 is able to borrow money but keep the payment the same. 

Q: How much are these updates expected to cost?
The amount budgeted for all projects is currently $100 million. Given where the district is in planning the projects, contractors are building in multiple contingencies which is causing the estimated cost to be higher than $100 million. As a result, the district has also prioritized the projects so that the ones which have been determined by our community to be the highest priorities for completion (safety and security, infrastructure) will be the ones completed first. 

Q: Does the proposed bond issue increase the bond and interest property tax levy?
No. The proposed bond issue will not change the District’s bond and interest property tax levy — it will remain the same and not increase.  It is a zero-tax-rate-change bond proposal. 

Q: Why is this a zero-tax-rate-change proposal? How can this work be completed without raising the tax rate?
Our District has a unique opportunity to complete the needed building updates without changing the portion of the tax rate used for paying down D7 debt. As previous debt is paid off, the district can take on new debt without changing the tax rate homeowners pay. This is similar to taking out a home equity loan to make major home repairs or updates while keeping your mortgage payment the same. It is important to understand that, for any given year, the amount of property taxes you pay to support our schools might change based on changes in the assessed valuation of your property. The tax rate for debt retirement will not change if voters approve our proposal. 

Q: Will the zero-tax rate-change be reflected on my next tax statement?
No. If the bond proposal is approved at the April 4, 2023 election, there will be no change to the projected tax rate for paying debt service on the District’s bonds for the 2023 tax cycle. The bonds approved at the April 4, 2023, election will not be incorporated into the district tax rate until the 2024 tax cycle. Given that this is a zero-tax rate-change, the debt service rate portion of the District #7 tax on the 2024 tax bill would be the same as the 2023 tax bill.

Q: Why do these school renovations now?
We have the opportunity to renovate our existing buildings to improve safety and security, provide an improved learning environment, and protect the investment in our homes, without changing our property tax rate. There are school districts all over the state and nation that wish they could make these kinds of needed improvements without increasing their tax rate. The Board of Education placed the issue on the ballot for April 2023 because there is no November 2023 election. Waiting longer to ask for voter approval would delay renovations and other critical needs and we have the opportunity to renovate now without increasing the tax rate. 

Q: What happens if this proposal is not approved by voters on April 4?
The cost for needed repairs and updates will continue to increase as our buildings age, and students will continue to attend schools that are not equitable across the district. Any future bond proposals will likely require a tax rate increase from the community instead of the zero-tax-rate-change opportunity in April.

Election Day & Voting Information

Q: When was the last time D7 asked for bond funding for facilities?
April 17, 2007

Q: What is a bond issue?
Simply put, a bond is much like a personal home loan, and is a way for government entities, such as school districts, to borrow money for large projects and repay them with future tax proceeds. An individual generally approaches a financial institution for a mortgage because they don’t have the means to pay for their home with one large initial payment. 

Q: When is the election?
Election Day is Tuesday, April 4, 2023. The Edwardsville D7 bond proposal requires a simple majority (50.0% + 1 to pass). It is important for every voter to become informed and understand the proposal on the ballot, and then exercise their right to vote. EVERY SINGLE VOTE IS IMPORTANT. That’s why it is crucial that you remember to vote on that day and remind all of your friends and family to do the same.  If you are not registered to vote, March 7 is the last day to register to vote before Grace Period Registration begins on March 8. 

Q: Who is eligible to vote?
All registered voters in the Edwardsville D7 School District are eligible to vote in this election. Local residents may also request absentee ballots and find a complete list of election dates by contacting the Madison County Clerk’s office or visiting their website for additional information.

www.madisoncountyil.gov/departments/county_clerk/elections/voters.php

Q: When does early voting begin?
Early voting begins Feb. 23 by mail and also the first day for in-person early voting. For a complete list of voting dates and voting locations please, visit the County Clerk’s website listed above. 

Q: How will the proposal appear on the ballot?
By law, the bond issue must appear on the ballot in the following form:

Shall the Board of Education of Edwardsville Community Unit School District Number 7, Madison County, Illinois, improve the sites of, build and equip additions to and alter, repair, and equip school buildings, including constructing security improvements and secured entryways, and issue bonds of said School District to the amount of $100,000,000 for the purpose of paying the costs thereof? 

If you want to see what projects are planned by building, click here to see that document.

Dr. Shelton gave a final presentation on the bond proposal at the March 27 Board of Education meeting.

View the PowerPoint here: District #7 BOE Bond Update.pptx

Many questions were also asked by board members in regards to the projects planned and finances. Watch the meeting HERE (bond proposal presentation begins at 47:40).

5 Facts About District #7’s Bond Proposal (mailed to all District 7 residents on 3/6/23)

PDF

Community members were invited to a Lincoln Informational Night and Open House on Thursday, February 16.

Following a presentation by Dr. Shelton, tours of Lincoln Middle School were given by current students.

You can view the slides from the presentation here: Lincoln Middle School Comm Engagement 2.16.23.pptx

For information on voting in Madison County, visit the clerk’s office page:

https://www.madisoncountyil.gov/departments/county_clerk/elections/index.php