Lebanon R-3 Board Tables Tax Rate Decision, Approves High School Change Order

The Lebanon R-3 Board of Education met Tuesday evening for a meeting dominated by discussion over the district’s 2026 property tax levy, along with action on the district budget and Lebanon High School construction project. The board ultimately did not set the 2026 tax rate Tuesday night, instead voting unanimously to table the issue until an August 26 study session.

Tax Rate Draws Lengthy Public Discussion

The district opened its annual tax-rate hearing with CFO Adam Dameron reviewing the district’s financial position and administration’s recommendation.

The administration proposed maintaining a total levy of $4.4650 per $100 of assessed valuation, the same total rate as 2025. Under that proposal, the operating levy would be $3.4987 and the debt-service levy would be $0.9663. The district’s 2026 assessed valuation was reported at approximately $438.1 million, up about $7.9 million, or 1.85%, from the previous year.

Administration also discussed the possibility of eventually asking voters to approve what it described as a no-tax-rate-increase fund transfer, moving levy authority from debt service to operations. That could potentially go before voters later in FY27 and would allow more locally generated revenue to support salaries, instruction, transportation, utilities and other operating expenses.

Several residents, employees, parents and former district officials addressed the board during the hearing. The speakers included people who argued against lowering the levy, citing the district’s financial challenges, previous voter support for school funding and concerns that additional revenue reductions could eventually affect staffing, programs and services. The district has already made approximately $3 million in expenditure reductions in the FY27 budget.

The board discussion that followed centered heavily on the distinction between the operating levy and debt-service levy.

One argument presented by board members was that debt-service revenue legally cannot be used for classroom operations, salaries or other operating expenses. Discussion also returned to the language presented to voters with the district’s 2024 bond issue, which estimated the debt-service levy would remain at approximately 85 cents.

Administration, however, argued that retaining the available levy provides financial flexibility. District officials said the district faces uncertain state and federal funding, inflationary pressures and the possibility of additional reductions if revenues do not keep pace with expenses.

A motion was eventually made to establish:

Incidental levy: $2.6987Teachers Fund levy: $0.8000Total operating levy: $3.4987Debt-service levy: $0.8536Total levy: $4.3523

That would have placed the total levy about 13.77 cents below the $4.49 voter-approved ceiling. However, the motion received no second and therefore died without a vote.

The board then moved to postpone the decision.

The board voted 7-0 to table setting the 2026 tax levy until its August 26 study session.

So, despite the tax rate appearing as an action item on Tuesday’s agenda, no 2026 tax rate was actually adopted at this meeting.

FY27 Budget Letter Approved

The board unanimously approved the district’s FY2026-27 Budget Letter.

District officials described a difficult financial environment that included approximately $1 million less in state revenue than had been budgeted during FY26, slower-than-expected local revenue growth and uncertainty surrounding federal funding. The FY27 budget already contains approximately $3 million in expenditure reductions.

Officials said classroom instruction remains the priority. The district maintained a 1% cost-of-living adjustment and eligible salary steps, but some other priorities have been paused or reduced, including bus purchases and preventive maintenance spending.

The board approved the Budget Letter 7-0.

Lebanon High School Construction

The board also received an update on the ongoing Lebanon High School construction project.

Work continues on exterior brick and cladding, while renovations to the science classroom wing were nearing completion. Officials said those classrooms were expected to be available to teachers for the beginning of the school year. Window replacement was also underway in the math wing, although some glass remained delayed.

The board considered Change Order #5 totaling $81,739.

The largest component, $75,388, is for renovation of restrooms outside the cafeteria. Officials described deteriorating equipment and partitions, flooring problems, dated plumbing fixtures and plumbing work that would be required in the area. The restrooms had initially been left outside the project’s scope because of concerns about exceeding the construction budget. Officials told the board the project ultimately came in under budget and sufficient contingency remained.

Additional work included electrical revisions and modifications involving HVAC ductwork and ceiling height.

The board approved Change Order #5 for $81,739 by a 7-0 vote.

Consent Agenda

The board unanimously approved its consent agenda, which included the July meeting minutes, monthly financial reports, employee residency waivers, the 2026-27 Assessment Plan, agreements with Missouri Baptist University and Grand Canyon University, the district’s Special Education Local Compliance Plan, a Drury University field experience/internship agreement and declaration of surplus property.

The vote was 7-0.

Culture, Climate and District Communications

District staff presented an update on the district’s CSIP goal involving positive culture and climate.

The district has worked to improve staff support, internal and external communication and processes for responding to staff and family needs. Staff reported that approximately 70% of respondents identified communication as a district strength, while approximately 64% identified a caring culture as a strength.

Plans for the coming year include implementing the district’s internal and external communication plan, continuing ADA accessibility work, improving family access to resources and self-service tools and making points of contact and district processes easier to understand.

The communications strategy will also emphasize transparency and consistency while highlighting students, employees and positive developments within Lebanon schools.

Summer Experience

The board received a positive report on the district’s 2026 Summer Experience program.

Although overall enrollment was approximately 55 students lower, the district averaged about 20 more students attending each day compared with the previous year. Because summer-school funding is tied heavily to attendance, officials highlighted that increase as particularly important.

Transportation remained similar to the previous summer, with 20 daily routes, five special education routes and more than 30,000 total summer miles.

Academic assessments also showed student growth. For example, among kindergarten students assessed on one early math skill, 17 students began at the entry level compared with eight at the end of the four-week program.

Parent feedback was described as strong, and officials said no responding parent reported that the program failed to meet expectations this year. The district’s administrative internship component also provided 281 hours of experience working directly with principals during Summer Experience.

Student Attendance Improves

The district also reported improvement in student attendance.

Five of the district’s six buildings improved their attendance, and overall district attendance increased slightly. Administrators described it as the district’s highest overall level in at least several years.

The district said its attendance strategy includes more frequent communication, recognition of good attendance, additional support and accountability for students struggling with attendance, better data for administrators and increased engagement with parents and students.

Preparing for the New School Year

Superintendent Dr. David Schmitz reported that New Teacher Institute was underway August 11-13. He noted that the number of new employees needing onboarding was not increasing, which he viewed as a positive sign for employee retention.

The district’s All Staff Convocation is August 21, with this year’s theme centered on “Moments Matter.”

The first day of school is August 25. Back-to-school mailers were also arriving in district families’ mailboxes.