EDITOR:
Thank you for the article on the ongoing downturn in Platte County R-3 School District enrollment this past week.
R-3 current enrollment is actually 29 students lower than the 2019-20 school year six years ago. Enrollment isn’t just down this year, it is down in four of the last six years. The R-3 communications director/minister of propaganda Laura Hulett told you the downturn is due to a “temporary slowdown” in “housing development construction.” I did not know temporary meant six years. This same communications director sends out media releases and it is front page news when enrollment is up even the slightest amount but no press releases to keep the taxpayers informed when enrollment is down, your paper had to point it out. Where is the transparency we were promised from the school district and the communications director whose salary we are paying for?
While enrollment is down over the past six years, R-3 administrative salaries as reported to the state have increased over 1,000,000.00 (THAT’S ONE MILLION DOLLARS) dollars per year from 2020 to 2024 in the district, that’s almost 30% in five years. Total payroll at the district is up over $12 million during that same five year period, as the district has added over 80 new employees while enrollment has gone down.
Remember this when you see the media releases from R-3 telling you what good stewards of your tax dollars they are. Could a private business ever run like this?
It also appears around $8 million of your tax dollars may have been wasted in the last round of bond buying for the district debt. In June the district secured $69 million at 4.89% interest over 20 years. The district once again used the “negotiated sale” method of securing this interest rate. A “negotiated sale” is basically where the financial advisor for the district tells them this is the best rate they can secure and the district uses that rate. In October of last year when interest rates were actually higher, Park Hill used the “auction” process to secure $84 million at 3.92% over 10 years. The difference to the R-3 taxpayer would be over $8 million if we had gotten anything even close to the Park Hill rate.
I thought maybe it was just a fluke and maybe the length of time made a difference so I looked on the Missouri State Auditor website at all reported large school bonds I could find since last summer. I found 12. Not a single one had a higher interest rate than what R-3 is paying for our last bond.
All districts using the “auction” process were lower, with Columbia’s $42 million at 3.26%, Webster Groves $27 million at 4.07% and Lindbergh’s $64 million at 4.18%. All “negotiated” rates were higher with the closest to R-3 being St Charles for $30 million at 4.77%.
A rate drop of just .10 can be worth over a million dollars in savings. Why is R-3 not using the bid/auction process? One theory I have is they are OK with paying more because in a year or two they will refinance that 4.89% rate lower, and then they get to put out a press release telling you how good they are with your money. Telling us they are saving thousands of dollars in interest, which sounds great if you didn’t know they were paying more interest up front, costing you millions. Well, now you know.
On a final note, the Platte County R-3 School District is now over $35,000.00 in debt per student, continuing to be one of the highest in the state (TOP 5), even after years of stagnant enrollment. Just think how much could the district cut your property taxes if they ever decided to get their debt and spending under control?
Why would they? If they need more money I guess they can just ask the state to raise your property tax evaluation again!
I will post a link to the Missouri State Auditor website on the PlattecountyR3facts Facebook page, along with the other supporting documents for this letter.
--Kirby Holden
Rural Platte County