The North Little Rock School District has sent a special election request to the Arkansas Department of Education for a potential millage extension.
Keith McGee, interim superintendent of the 8,000-student school district, said the district is in the beginning stages of asking voters for a seven- or eight-year extension. McGee said the request was sent on behalf of the school board, which is looking to refinance its debt and the millage extension is a big part of the process.
"It would allow us to generate funds for construction and lower our debt payments by $1 million a year," McGee said. "Some of the projects we are looking at is Ole Main and an upgrade to the middle school."
Financial adviser Scott Beardsley said the current millage rate is set to expire in 2042. He said now is a good time for a millage extension because interest rates are low, allowing the district to potentially refinance its debt.
North Little Rock School District voters approved a 7.4-mill property tax increase in a special election in 2012, which allowed the district to carry out a $265.5 million school construction and renovation plan over the next five years. The renovation plan was one of the largest and most comprehensive plans in the state's history.
The school-tax rate increased from 40.9 mills to 48.3 mills. The millage increase costs the owner of a $100,000 home in North Little Rock an annual school tax bill of $966.
A mill is one-tenth of a cent. Each mill produces $1 in taxes for every $1,000 of assessed valuation. Counties assess real property at 20% of its appraised value, and that value is multiplied by the millage rate to determine taxes.
The $5.3 million generated annually by the school-tax increase was paired with $8.3 million a year in savings from the district's operating budget to finance a $200 million construction bond issue that will be paid off over 31 years.
McGee said a special election request must get approval from the Arkansas Department of Education and Gov. Asa Hutchinson's office, and then a decision from the school board must be made on a millage decision.
"We are awaiting feedback right now from the [Department of Education]," he said. "We know we aren't the only district asking for a special election. If we can't do a special election, then we will plan for a later date.
"We are in the early stages of this."
Beardsley said the Arkansas Department of Education hasn't been approving special elections so far this year, and that this is simply an inquiry to see when that might start again.
He said Friday that school district officials had not received a response.
Metro on 05/25/2020