MONROE - The Monroe school board is looking to lessen the tax pain district residents will feel by asking for $600,000 less than it is allowed under last year's referendum.
The board Monday approved a proposed general fund budget of slightly more than $30 million for the 2008-2009 school year to take to the district annual meeting Oct. 20. That is about a 3 percent increase over last year's budget of $29.2 million.
The budget means a total tax levy of $11.5 million, a 1.1 percent decrease from last year's levy. The levy for general operations is $7.9 million, a 4.4 percent decrease from last year's levy.
That will translate to a tax rate of $11.45 per $1,000 of assessed value, a decrease of 4.9 percent from last year. The owner of a $120,000 home, for example, will pay $1,374 in school taxes for 2008-2009, instead of the $1,445 for 2007-2008. The owner of a $500,000 farm will pay $5,725 instead of $6,020 for last year.
The tax rate is based on an estimated 4 percent increase in the district's total equalized valuation. District Manager Ron Olson said he anticipates property in the district to top $1 billion in value for the first time this year. Final numbers won't be available until October.
There were several factors contributing to the decision to limit the amount levied via referendum authority:
• Enrollment is higher than was projected before the referendum, meaning the district will get more in state aid.
• Higher enrollment also means the district can levy more, decreasing the need for using the full referendum authority.
• The district was able to save money through staff turnover and retirements. Another boost was a 7 percent increase in health insurance for staff instead of the expected 12.5 percent.
Olson said it is important to show taxpayers the district is being financially responsible and not abuse its referendum authority. In April 2007, district voters approved a four-year referendum that allowed the district to exceed state-imposed revenue caps by $1.35 million the first year, $1.5 million this year, $2.3 million next year and $3.2 million the following year.
The proposed budget includes an additional $900,000 allowed by the referendum, a reduction of about 40 percent of the $1.5 million allowed. That will save district taxpayers about 60 cents per $1,000 of value.
Board member Amy Bazley asked if by not levying the full amount allowed this year, the district might find itself in a worse situation next year and have to explain a jump in taxes.
Olson said he considered that scenario as he was putting together the budget.
"It's tough to get referendum authority," he said, adding there is a school of thought that "you use it or lose it."
However, a weak economy makes it especially important to show financial restraint, he said.
"It's important we show them (taxpayers) if we don't need those dollars, we won't use them," he said.
District Administrator Larry Brown concurred.
"Tonight's decision by the Board of Education shows the commitment to our District Improvement Plan ... It is also a clear indicator of the Board of Education's and administration's sensitivity to our current economic times and the burdens of our local taxpayer," Brown said in a press release announcing the budget decision.
Numbers could change between now and Oct. 20, when the board is set to formally adopt the proposed budget.
"There's still pieces of the puzzle to come in," Olson said, referring to official valuation and state aid numbers.
But he promised the district will continue to work to keep spending in check to meet its goal of coming in under budget. For the 2007-2008 school year, the district was able to come in about 6.5 percent under budget for expenses, which Olson attributed to the entire staff being cautious about saving money.
That effort will continue.
"Our attitude toward spending is not going to change," he said.
The board Monday approved a proposed general fund budget of slightly more than $30 million for the 2008-2009 school year to take to the district annual meeting Oct. 20. That is about a 3 percent increase over last year's budget of $29.2 million.
The budget means a total tax levy of $11.5 million, a 1.1 percent decrease from last year's levy. The levy for general operations is $7.9 million, a 4.4 percent decrease from last year's levy.
That will translate to a tax rate of $11.45 per $1,000 of assessed value, a decrease of 4.9 percent from last year. The owner of a $120,000 home, for example, will pay $1,374 in school taxes for 2008-2009, instead of the $1,445 for 2007-2008. The owner of a $500,000 farm will pay $5,725 instead of $6,020 for last year.
The tax rate is based on an estimated 4 percent increase in the district's total equalized valuation. District Manager Ron Olson said he anticipates property in the district to top $1 billion in value for the first time this year. Final numbers won't be available until October.
There were several factors contributing to the decision to limit the amount levied via referendum authority:
• Enrollment is higher than was projected before the referendum, meaning the district will get more in state aid.
• Higher enrollment also means the district can levy more, decreasing the need for using the full referendum authority.
• The district was able to save money through staff turnover and retirements. Another boost was a 7 percent increase in health insurance for staff instead of the expected 12.5 percent.
Olson said it is important to show taxpayers the district is being financially responsible and not abuse its referendum authority. In April 2007, district voters approved a four-year referendum that allowed the district to exceed state-imposed revenue caps by $1.35 million the first year, $1.5 million this year, $2.3 million next year and $3.2 million the following year.
The proposed budget includes an additional $900,000 allowed by the referendum, a reduction of about 40 percent of the $1.5 million allowed. That will save district taxpayers about 60 cents per $1,000 of value.
Board member Amy Bazley asked if by not levying the full amount allowed this year, the district might find itself in a worse situation next year and have to explain a jump in taxes.
Olson said he considered that scenario as he was putting together the budget.
"It's tough to get referendum authority," he said, adding there is a school of thought that "you use it or lose it."
However, a weak economy makes it especially important to show financial restraint, he said.
"It's important we show them (taxpayers) if we don't need those dollars, we won't use them," he said.
District Administrator Larry Brown concurred.
"Tonight's decision by the Board of Education shows the commitment to our District Improvement Plan ... It is also a clear indicator of the Board of Education's and administration's sensitivity to our current economic times and the burdens of our local taxpayer," Brown said in a press release announcing the budget decision.
Numbers could change between now and Oct. 20, when the board is set to formally adopt the proposed budget.
"There's still pieces of the puzzle to come in," Olson said, referring to official valuation and state aid numbers.
But he promised the district will continue to work to keep spending in check to meet its goal of coming in under budget. For the 2007-2008 school year, the district was able to come in about 6.5 percent under budget for expenses, which Olson attributed to the entire staff being cautious about saving money.
That effort will continue.
"Our attitude toward spending is not going to change," he said.