During the USD 249 school board meeting on April 12, 2021, the district announced it will be
able to redeem the district bonds entirely next fiscal year. This will eliminate the 5.541 mills
currently levied in the Bond & Interest fund for Frontenac School District taxpayers. These 25
year bonds originated in 2005 but after refinancing they can be paid off in calendar year 2021.
The Bond and Interest mill levy for the district has been decreasing over the last couple
decades. In 2002-03, the Bond and Interest mill levy was 11.875. In 2005-06, with the new
2005 bond issue, the bond and interest mill levy was 8.554 and remained at that level for a
while. The last several years the bond and interest mill levy has been in the 5.541 range.
Refinancing and assessed valuation increases have allowed for a 3 mill reduction since the
bonds originated in 2005. Now with the payoff, the remaining 5.541 mills will be eliminated.
Also at the April board meeting, the USD 249 Board approved a Local Option Budget (LOB)
Resolution. The resolution states that the board of education shall be authorized to adopt a
local option budget in each school year in an amount not to exceed 33% of the amount of total
foundation aid. This resolution allows the Board the authority to increase the LOB from the
current 30% to a maximum of 33% in any year when the school budget is adopted. If the board
chose to exercise the full 33% LOB for the next fiscal year, it would increase the mills levied in
the LOB fund by a little over 2 mills, assuming state aid remains the same. The net result of this
action, when combined with the elimination of the Bond and Interest millage, would allow the
USD 249 Board of Education to pass on a little over 3 mill tax reduction to the taxpayers of USD
249. Reducing the district overall mill levy 3 mills is projected to make USD 249 the lowest mill
levy of the school districts in the area. The net tax savings of a 3.3 mill levy reduction for
USD 249 tax payers on a $100,000 appraised value home would be $37.95 annual savings.
Utilizing the 33% LOB would create an extra $225,000 in the district’s budget. Because USD
249 receives 78% LOB state aid, an estimated $175,000 will come from the state. The
remaining 22% equals $50,000 coming from local real estate taxes of residents and businesses
in the USD 249 School District. These additional funds will be used to hire additional staff in the
form of a school resource officer, an elementary physical education teacher, public information
director, and a MTSS teacher.
The elimination of the Bond and Interest Mill Levy at a time when the district can access
additional funds through the LOB Mill Levy while still being able to pass on an over 3 mill
decrease to taxpayers creates multiple opportunities for the district. The district is very excited
to be able to reduce taxes for our patrons to possibly the lowest in the area, while also
accessing state aid that will allow for additional staff necessary to keep Frontenac as one of the
top districts in Kansas.