WHAT IS A BOND?

A bond is similar to a home mortgage. It is a contract to repay borrowed money with interest over time. Bonds are sold by a school district to competing lenders to raise funds to pay for the costs of construction, renovations and equipment. Many school districts utilize bonds to finance renovations and new facilities.

HOW CAN BOND FUNDS BE USED?

Bond funds can be used to pay for new buildings, additions and renovations to existing facilities, land acquisition, technology infrastructure and equipment for new or existing buildings. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel and insurance.

HOW DOES THE BOND REPAYMENT LEVY WORK?

The Financials section of this website explains the financial plan in detail. If the new bond issue passes, the district's two existing bond repayment and the new repayment will be merged into a single 20-year plan with a stable annual tax levy of 30-31 cents per $100 of valuation.  

Over time, the levy or the term of repayment may be reduced by valuation growth in the community or refinancing bonds to get a more favorable rate. For instance, refinancing the current bonds in 2019 saved the district over $209,000.  

WILL FREEMAN'S ENROLLMENT KEEP GROWING?

Although enrollment growth is never guaranteed, Freeman's history and location suggest more growth is likely. When Freeman was established in 1998, the K-12 enrollment was 315 students. Currently, we have 470 K-12 students enrolled plus about 30 preschoolers. In the past 15 years, Freeman's K-12 enrollment has grown by 30% due to increases in both resident and option students. With its proximity to Lincoln and Beatrice, the Adams and Filley communities are attractive areas to live and raise children. As homes become available in our area, they are quickly sold and plans for additional housing in the Freeman district are being developed. These trends will likely continue.

CAN FREEMAN'S ENROLLMENT BE CONTROLLED?

Enrollment of resident students can't be limited; option enrollment can be limited within the boundaries of the state law. The Board can set capacity limits for option students at each grade level and does so each March. Freeman's current capacity limits are designed for two sections per grade in grades K-6, a preschool capacity of approximately 30, and a secondary grade capacity of 46 per grade.

WHY ARE OPTION STUDENTS BENEFICIAL?

Freeman is fortunate to be a positive net option district, that is, more students are opting in than opting out. This year our net option number is plus 91. Additional state aid of approximately $11,000 per option student means a boost in state funds to Freeman of about $1,000,000. In addition, our higher enrollment allows for additional curricular and extracurricular opportunities that smaller schools may be unable to provide. Greater opportunities benefit both resident and option students.

WHY IS ADDITIONAL PRESCHOOL SPACE PART OF THE PLAN?

Freeman currently enrolls 25-30 preschool students per year and that number may grow over time.  Our current space limits our pre-school program to morning and afternoon 3.25-hour sessions.  Additional space will allow for increased capacity and allow us to consider other programming choices.  

HOW MANY BONDS ARE THE TAXPAYERS OF FREEMAN PAYING ON? WHEN DO THEY EXPIRE?

The Freeman district is currently paying on existing bonds from 2006 and 2012.  If the new bond issue passes,  all three bonds would be merged into a single 20-year repayment plan with a stable annual levy.

IS THIS THE RIGHT TIME TO RUN A BOND WITH THE CURRENT ECONOMY?

There’s no perfect time to propose a bond issue.  Bond interest rates may be lower in the future, but construction costs are likely to continue to increase.  However, if bond interest rates do fall, we can refinance the bonds, as we did in 2019, resulting in a lower levy or shorter repayment term. 

HOW CAN I GET MORE INFORMATION REGARDING THE BOND ISSUE?

Information will be available via this website and social media. Informational flyers and brochures will be prepared and will be shared throughout the district. There was coverage of the bond project in the January 9th edition of The Voice News. If you would like more information, you may also reach out to the school or a board member.