How Much Would You Actually Save? Citizens Launch Calculator Ahead of R-3 Levy Decision

Citizens Group Launches Levy Calculator Ahead of Lebanon R-3 Tax Rate Decision

A group of Lebanon-area citizens has launched an online calculator aimed at helping property owners understand what a proposed rollback of the Lebanon R-3 School District tax levy could mean for their individual tax bills, as the Board of Education prepares to revisit the issue at an upcoming study session.

The 2026 tax levy became a major topic of discussion during the Board of Education’s August meeting after a proposal was made to reduce the district’s debt service levy by approximately 14 cents per $100 of assessed valuation.

The proposal did not receive a second. Rather than setting the tax rate that night, the board later voted 7-0 to table the entire 2026 tax levy decision until its August 26 study session.

The district calendar lists the School Board Study Session for Wednesday, August 26. The meeting has been moved to 5:30 p.m. at Central Office, 224 W. Commercial Street. The district’s published board calendar originally listed the August 26 study session during the day. (⁠Lebanon R-III School District)

How did the district get here?

The issue goes back to changes in property assessments and Missouri’s Hancock Amendment.

During the August tax rate hearing, district officials explained that the operating levy was reduced in 2025 after increased assessed valuations triggered a required rollback. The district’s operating levy dropped from approximately $3.65 to $3.49 per $100 of assessed valuation.

The Board of Education then increased the debt service portion of the levy. That kept more of the district’s overall local tax revenue in place, but placed those dollars in debt service rather than the operating fund.

That distinction has become central to the current debate.

Money collected through the operating levy can support the district’s day-to-day expenses, including salaries, programs and operations. Debt service revenue, however, is restricted to paying the district’s debt.

The district has discussed eventually asking voters to approve what it describes as a “no tax rate increase fund transfer.” That would move a portion of the levy from debt service into operating funds without increasing the overall tax rate. District administrators said those operating dollars could then be used for salaries and benefits, instructional programs, curriculum, transportation, utilities and other operating expenses.

The argument for rolling it back

During the August meeting, one argument from the board centered on the debt service rate voters were presented with when Proposition 4 was approved in 2024.

Proposition 4 authorized $41 million in bonds for school improvements. The ballot proposal was presented as requiring no estimated increase in the district’s debt service property tax levy, and district information at the time said the existing levy would be used to complete the projects. (⁠Lebanon R-III School District)

During the board’s August discussion, it was noted that the debt service levy had subsequently increased from approximately 85 cents to approximately 97 cents following the Hancock rollback.

The argument for returning it to the lower rate is that the district should honor what voters were told about the debt service levy and, if additional operating revenue is needed, take that question directly to voters.

One board member argued that reducing the debt service rate would not prevent the district from later asking voters for additional operating revenue after determining exactly how much is needed.

“I do think we’re all in the same boat that we want the voters to choose, and we want the voters to decide,” the board member said during the discussion.

The proposed rate discussed at the meeting would set the operating levy at $3.4987 and the debt service levy at $0.8536, producing a total levy of $4.3523 per $100 of assessed valuation. That would be approximately 13.77 cents below the $4.49 voter-approved ceiling.

The argument for keeping the current rate

The other side of the debate centers on the district’s financial position and what approximately 14 cents means when multiplied across the district’s entire assessed valuation.

District administrators told the board they have already reduced expenditures by approximately $3 million for the FY27 budget because of lower-than-anticipated state revenue, slower local revenue growth and uncertainty surrounding federal funding. The district has also paused or eliminated spending on priorities including bus purchases and preventative maintenance.

During the board discussion, the approximately $600,000 at issue was described as roughly 1% of the district’s $61 million operating budget. One board member opposing the rollback pointed to the difficulty of finding the $3 million in reductions already made and questioned the wisdom of removing another $600,000 in potential revenue.

Several members of the public also spoke against the rollback during the tax rate hearing.

One speaker illustrated the issue using a $300,000 home, estimating that the proposed reduction would save that taxpayer about $6.65 per month while reducing district revenue by approximately $613,000 overall.

District administration has recommended maintaining the current levy structure, which would preserve the possibility of later asking voters to transfer a portion of the debt service levy into the operating fund without increasing the total tax rate.

Citizens create a calculator

With the numbers and terminology surrounding the levy difficult to follow, a citizens group supporting maintenance of the current levy has created an online tool allowing property owners to calculate the estimated effect of the proposed rollback on their own taxes.

The calculator is not a Lebanon R-3 School District project. The website states that it and its accompanying information were created by a citizens group and that the district contributed no money or resources toward its creation. (⁠LR3 Levy Impact Calculator)

⁠LR3 Levy Rollback Impact Calculator

Users enter the total assessed value shown on their property tax receipt. The calculator divides that value by 100 and multiplies it by 14 cents to estimate both annual and monthly savings if the rollback is approved. It also allows users with multiple properties to calculate their combined estimated savings. (⁠LR3 Levy Impact Calculator)

The website clearly advocates against the rollback rather than presenting itself as a neutral district resource. It tells visitors that the rollback would cost the district more than $600,000 annually and encourages those who agree with maintaining the levy to contact the Board of Education.

The calculator can also generate a personalized statement showing the property owner’s assessed value and estimated savings. Users can copy or print the statement or use the site to generate an email addressed to board members. (⁠LR3 Levy Impact Calculator)

In an interview about the project, one of the citizens involved said the purpose is to give residents a way to compare what the rollback means to their own household with what the cumulative reduction would mean to the district.

“Then they can decide if that savings is worth a reduction of $600,000 to the district,” the citizen explained.

What happens next

The issue now returns to the Board of Education on Wednesday, August 26.

At the August meeting, board members specifically asked for additional time to discuss the issue rather than making the decision after roughly 30 minutes of debate. One member noted that the levy had received considerably more discussion the previous year and asked that the matter be moved to the study session for further collaboration.

The board ultimately agreed unanimously to table setting the 2026 tax levy until that study session.

The decision before the board is not whether to create an entirely new tax. The question is whether to maintain the current levy structure or reduce the debt service portion by approximately 14 cents.

Behind that seemingly small number are two competing arguments: whether the board should return the debt service levy closer to the rate presented to voters and later ask voters directly for additional operating revenue, or maintain the current levy and preserve roughly $600,000 in annual local revenue while potentially asking voters to transfer those dollars into operating funds.

For individual property owners, the citizens group’s calculator now provides a way to put their own number on that decision before the board takes it up again.Lebanon Now will continue following this story and provide updates as the Lebanon R-3 School Board considers the levy and its next steps.