Tax Impact of the Central Facility Plan- Is the glass half-full or half-empty?

In less than two weeks the voters of Central Community School will be asked to support a $6 million dollar bond project to address a variety of concerns with the K-12 building, which has parts of the building approaching 100 years old.  Public schools are funded through taxes and improvements to those schools are also done through taxes.  Central's current tax rate is among the bottom 20% of schools in the State of Iowa at $11.06 per $1000 of assessed value.  Approval of the $6 million facility project would bump that rate up to around $13.50 per $1000 of assessed value.  This would still keep Central below the State average and below the rate of many neighboring school districts.

While supporting this project will increase our taxes, it will also have a positive effect on our home values.  According to data from a 2013 Realtor.com survey, schools have a major impact on home values and attracting new families to your community.  Here is a summary of what was found in the survey:

• 91% of home buyers said school boundaries were important.
• 22% of home buyers state a home's proximity to a school a major factor.
• 29% of people who bought a home said the quality of the school was the deciding factor.
• 1 out of 5 buyers would pay 10% more for a home in a good school district.
• 1 out of 10 buyers would pay +20% more for a home in a good school district.
• 1 out of 3 buyers would settle for a smaller home to have access to a good school district.
• 1 out of 5 buyers would give up a garage or bedroom for a good school district. 

Another research article titled "Do Schools Affect Property Values" by Ken Corsini also shows a school has a "substantial effect on the value of homes".  This study found that during the recent housing crisis, homes with a good school weathered the falling real estate market significantly better than homes without.  This data was so compelling Corsini began using school performance as a major factor in real estate investing.

Instead of being short-sighted with an increase in taxes, I'd encourage homeowners to think about how much equity has been put into their pocket because of Central Community School District.  The studies I mentioned above found a direct correlation between great schools and higher property taxes.  For those of us with kids in the school district (or young families shopping for a community to live), we are typically willing to pay more in order to have a great school for our kids to attend.  The problem is getting voters who have lived in the community and are no longer attached to the school, to see that the school is still serving them a major benefit.  That benefit as I have stated comes in the added equity of their homes as well as attracting new families to fill vacancies created by a retiring workforce.  Who will take over our grocery store, pharmacy, movie theater, coffee shop, etc. when we have no school to draw new families into our community?  The answer to this question is found in every rural community across Iowa who has lost their school. 

I encourage all voters to take a tour of the building (every Saturday and Sunday 11:00-1:00 through April 4th) or check out our Virtual Tour Guide.  After reviewing the issues our K-12 building faces please contact the Auditor's Office to find the exact tax impact this will have on you.  For my home that will be around $20 more a month, which in my opinion is a fair trade for maintaining/increasing the overall value of my home.