FICTION
The principal and interest payments on bond issues are credited to the debt service fund – not the operating budget.  

The Rockwood School District tax levy includes two components:

1. the general operating funds component of $3.7830 which is designated to fund the general school operations (teacher salaries, new curriculum, student resources, district programs, etc.) and
2. the debt service component of $0.6800.  The debt service portion of the tax levy is restricted to the retirement of interest and principal on the bond issue (capital improvements, building new classrooms, safety measures, some technology, etc.)

These two components of the tax levy combine for Rockwood’s levy of $4.4630 per $100 of assessed valuation.  These two components are voted on independently by voters when any tax referendum is placed on the ballot. 

It is important to note that Prop R will not raise taxes, if approved by voters.  The current 68 cent debt service levy will be in effect until 2027, even if the voters do not approve the April 3, 2012 bond issue. If voters approve Prop R, it will not extend the district's current level of bond indebtedness - meaning you will continue to pay the same 68 cent debt service levy until 2027.

Missouri Revised Statute Section 165.011 states:  “Money derived from taxation for the retirement of bonds and the payment of interest thereon shall be credited to the debt service fund, which shall be maintained as a separate bank account.”  The Rockwood School District maintains these funds in a separate debt service fund as can be seen in the district’s comprehensive annual financial report. 

Districts in Missouri are further prohibited from paying principal and interest from general operating funds.  Rockwood follows this policy; no expenditures for principal and interest are paid for from the general operating funds.