MONROE - Taxpayers in the Monroe school district will see a 2 percent reduction in their school-related property taxes once the school board approves an adjusted 2017-18 budget next week, but declining enrollment has officials worried about a dwindling revenue limit base.
At its annual meeting Monday, the Monroe school board approved a $29.7 million budget that includes a $260,000 deficit based on expenses from the district's new phone system and security cameras that were scheduled to be paid for last year as part of the three-year referendum but spilled over into this year.
There is a $200 increase per student in categorical state aid this year and an additional $204 per student added in 2018-19. The district will receive $1.2 million in categorical aid for 2017-18, which is a spike from $737,000 last year. The state will pay another $200 per pupil this year in a separate aid, which has ranged between $200 to $450 per pupil in the last several years, according to Monroe Business Administrator Ron Olson.
Olson said the per-pupil state aid cost, final property valuation and tax rates were not considered in the district's preliminary budget because they were not available until mid-October.
"As long as the tax revenue limit base doesn't increase, we are not going to make up enough in per-pupil state aid to help us go forward," Olson said. "The erosion of our revenue base is caused by declining enrollment."
At 2,411, the district has 26 fewer students this year compared to last year. Its revenue limit is $24.8 million.
Olson said the district will carry over $424,253 to next school year to cover a bigger deficit.
"We have $357,000 less in base revenue limit," Olson said. "Next year we will have $600,000 less in our revenue limit base. We had to carry over dollars from the first year of the referendum because of our declining enrollment. That is why we went to a referendum, are in a referendum cycle and will continue in a referendum cycle."
In the 2017-18 preliminary budget approved at the annual meeting, the district's total levy of $12.6 million is an increase of 0.34 percent from last year. However, with the new property valuations and state aid, Olson said the board will approve an adjusted budget on Monday with a $12.7 million levy, which is a 0.81 percent increase compared to last year. The tax rate will be 2 percent less than last year, or $11.51 per $1,000 of a home's assessed value. A home valued at $100,000 will pay $1,151.79 in school taxes, which is $23.50 less than last year.
The state budget for 2018-19 includes $125 per freshman student at Monroe High School for wireless devices and provides an additional $20,000 to help the district hire a social worker. There are also mental health and bullying competitive grants and partnerships available for 2018-19.
Total revenues, at $29.5 million this year, are expected to decrease by $44,323 compared to 2016-17. The district's food service department is carrying over $80,000 from last year to help with new equipment purchases, including 11 new lunch room tables for Parkside Elementary School and seven new lunch tables for MHS. The district also is looking at purchasing a new oven and warmer for the high school.
"For food service to be in the black is very uncommon for a lot of districts and for them to be able to pay for some of their equipment is a great position for us."
The district has $2.5 million in debt they are paying back for the additions made to schools over the past 20 years, including the auxiliary gym and the Performing Arts Center at the high school.
After the 2018-19 school year, Olson said the district will have most of the debt money paid on the school renovations, plus $1 million for Wisconsin Retirement System debt.
"Since we won't have the debt of a $1.5 million payment to pay off buildings, there may be something else we may want to be doing to make our buildings last another 20 years," he said.
At its annual meeting Monday, the Monroe school board approved a $29.7 million budget that includes a $260,000 deficit based on expenses from the district's new phone system and security cameras that were scheduled to be paid for last year as part of the three-year referendum but spilled over into this year.
There is a $200 increase per student in categorical state aid this year and an additional $204 per student added in 2018-19. The district will receive $1.2 million in categorical aid for 2017-18, which is a spike from $737,000 last year. The state will pay another $200 per pupil this year in a separate aid, which has ranged between $200 to $450 per pupil in the last several years, according to Monroe Business Administrator Ron Olson.
Olson said the per-pupil state aid cost, final property valuation and tax rates were not considered in the district's preliminary budget because they were not available until mid-October.
"As long as the tax revenue limit base doesn't increase, we are not going to make up enough in per-pupil state aid to help us go forward," Olson said. "The erosion of our revenue base is caused by declining enrollment."
At 2,411, the district has 26 fewer students this year compared to last year. Its revenue limit is $24.8 million.
Olson said the district will carry over $424,253 to next school year to cover a bigger deficit.
"We have $357,000 less in base revenue limit," Olson said. "Next year we will have $600,000 less in our revenue limit base. We had to carry over dollars from the first year of the referendum because of our declining enrollment. That is why we went to a referendum, are in a referendum cycle and will continue in a referendum cycle."
In the 2017-18 preliminary budget approved at the annual meeting, the district's total levy of $12.6 million is an increase of 0.34 percent from last year. However, with the new property valuations and state aid, Olson said the board will approve an adjusted budget on Monday with a $12.7 million levy, which is a 0.81 percent increase compared to last year. The tax rate will be 2 percent less than last year, or $11.51 per $1,000 of a home's assessed value. A home valued at $100,000 will pay $1,151.79 in school taxes, which is $23.50 less than last year.
The state budget for 2018-19 includes $125 per freshman student at Monroe High School for wireless devices and provides an additional $20,000 to help the district hire a social worker. There are also mental health and bullying competitive grants and partnerships available for 2018-19.
Total revenues, at $29.5 million this year, are expected to decrease by $44,323 compared to 2016-17. The district's food service department is carrying over $80,000 from last year to help with new equipment purchases, including 11 new lunch room tables for Parkside Elementary School and seven new lunch tables for MHS. The district also is looking at purchasing a new oven and warmer for the high school.
"For food service to be in the black is very uncommon for a lot of districts and for them to be able to pay for some of their equipment is a great position for us."
The district has $2.5 million in debt they are paying back for the additions made to schools over the past 20 years, including the auxiliary gym and the Performing Arts Center at the high school.
After the 2018-19 school year, Olson said the district will have most of the debt money paid on the school renovations, plus $1 million for Wisconsin Retirement System debt.
"Since we won't have the debt of a $1.5 million payment to pay off buildings, there may be something else we may want to be doing to make our buildings last another 20 years," he said.