School Bond Referendums and Home Values

On November 4th, voters in the Lexington-Richland School District Five will have the opportunity to approve or reject a bond referendum. South Carolina state law requires voter approval for the district to borrow more than eight percent of the assessed value of all property in the district. A bond referendum is an election that allows residents an opportunity to give that school district permission to borrow money to expand/renovate school buildings or build new ones.

You may ask, "what does this issue have to do with real estate?" The answer is simple; Great schools sustain great communities. Independent reports show that property values are linked to the success rate of local schools.

The Lex-Rich Five school district has consistantly been among the best in the state including top honors a few years ago as the "School District of the Year." The success of the district has definitely contributed to the growth and success of the community. However, the school district has not had the funds necessary to match the growth. The district's rating has since been downgraded from "excellent" to "good" and is in danger of slipping further. The schools have become overcrowded and are also in jeopardy of becoming technologically inferior to neighboring school districts as available funds must be redistributed to provide "band-aide" fixes to aging buildings and add unsightly sub-standard trailer classrooms. The average age of District Five facilities is 30 years and there are currently 149 trailers being used as classrooms and offices.

Those opposed to the referendum site taxes as the main objection and have published false information regarding the actual numbers in order to persuade the public. The fact is the tax increase that would result would be $14 annually per $100,000 in assessed property value.

For example:

• The average home in Richland County is valued at $163,161. The tax impact would be $22.70 per year on a home at this value.
• The average home in Lexington County is valued at $173,598. The tax impact on this home value would be $24.30 per year.

Over the past 10 years, the Lex-Rich Five district has fallen behind neighboring districts in passed referendum dollars.

Richland District One passed a $381 million referendum in 2002.

Richland District Two passed a $98.3 million bond in 2000 and another $175.5 million in 2004.

Lexington District One passed a $118 million bond in 2004.

In comparison to District Five's $243.6 million referendum two of these districts are also seeking approval of bond referendums on November 4th.

Richland District Two: $306 million referendum.

Lexington District One: $336 million referendum.

Should the Lexington-Ricland Five Bond Referendum fail to gain voters' approval again, the district will continue to fall further behind the neighboring districts and school planners would have to consider a plan that would have the schools open year round on a rotating basis to ease the overcrowding problem. Some have asked "what is the problem with portable classrooms?" I'd ask them how they would feel spending most of their day in a leaky tin box with poor acoustics, bad circulation and tempermental heating and air conditioning? If you outgrew your current home, would you build additions or upgrade to a new home or would you put your family members out in the back yard in a tin box? The poor facilities and lack of a stable teaching environment would cause good teachers to move to other districts.

If the bond is passed, the district could update schools and build new schools so that class sizes could return to a normal. This could also reduce traffic in certain areas. Overall, the District Five schools could regain an excellent rating, attract the best teachers and offer the best education possible to our youth. It is the best investment we can make for our community.

Great schools attract great teachers. Great teachers educate great citizens. Great citizens make great communities. Great communities sustain great property values.