SOUTH WAYNE - Black Hawk district residents will see a decline of about 26 percent in their tax rate for the 2010-11 school year.
At the district's annual meeting Monday, residents approved a tax rate of $9.28, which is $3.25, or about 26 percent, lower than the 2009-10 tax rate of $12.53.
Superintendent Charles McNulty said the tax rate went down because the non-recurring referendum passed by residents in 2007 has ended.
The $9.28 tax rate means that a South Wayne school district resident with a home valued at $100,000 will pay $928 in school taxes, compared to $1,253 last year. A farm valued at $300,000 would be assessed $2,784 in school district taxes.
The 2010-11 tax levy, or the total amount district residents will pay of the 2010-11 budget, is about $1.5 million. That is about $575,000, or 27 percent, less than last year's tax levy of about $2.1 million. McNulty said the decline in the levy was also due to the end of the non-recurring referendum.
The 29 district residents who attended the meeting also approved the 2010-11 budget of about $5.4 million, which is about $200,000 less than the 2009-10 budget of $5.6 million.
Because two referendums to allow the district to exceed state-mandated revenue caps failed this year, the district cut three staff positions. The district cut a physical education teaching position and two aide positions.
Even with the cuts, the district still plans to use about $300,000 from its fund balance of almost $1.3 million to make up for an expected deficit this year, McNulty said. District residents had told the board during discussions about the proposed spring referendum that the district should use some of its fund balance to offset the expected deficit. McNulty said the district decided to use some of the fund balance to make up the deficit.
McNulty told residents the district could use some of the fund balance this year and some next year. However, the district doesn't want to reduce the fund balance too much because it hurts the district's ability to borrow money if there's an emergency.
In other business, residents approved a resolution by a vote of 26-3 to elect school board members on a district-wide basis rather than by areas. The school district, which includes parts of Browntown, South Wayne and Gratiot, elected board members based on eight areas within the district. The elections were done that way to make sure all of the communities were represented on the board.
Residents also voted 25-4 to reduce the number of board members from nine to seven.
The resolutions will take effect following individual elections. McNulty said one board seat has been empty for about a year and one board member doesn't plan to run for another term. He said that would bring the number of board members to seven and that no one will be removed from the board before the end of their term.
At the district's annual meeting Monday, residents approved a tax rate of $9.28, which is $3.25, or about 26 percent, lower than the 2009-10 tax rate of $12.53.
Superintendent Charles McNulty said the tax rate went down because the non-recurring referendum passed by residents in 2007 has ended.
The $9.28 tax rate means that a South Wayne school district resident with a home valued at $100,000 will pay $928 in school taxes, compared to $1,253 last year. A farm valued at $300,000 would be assessed $2,784 in school district taxes.
The 2010-11 tax levy, or the total amount district residents will pay of the 2010-11 budget, is about $1.5 million. That is about $575,000, or 27 percent, less than last year's tax levy of about $2.1 million. McNulty said the decline in the levy was also due to the end of the non-recurring referendum.
The 29 district residents who attended the meeting also approved the 2010-11 budget of about $5.4 million, which is about $200,000 less than the 2009-10 budget of $5.6 million.
Because two referendums to allow the district to exceed state-mandated revenue caps failed this year, the district cut three staff positions. The district cut a physical education teaching position and two aide positions.
Even with the cuts, the district still plans to use about $300,000 from its fund balance of almost $1.3 million to make up for an expected deficit this year, McNulty said. District residents had told the board during discussions about the proposed spring referendum that the district should use some of its fund balance to offset the expected deficit. McNulty said the district decided to use some of the fund balance to make up the deficit.
McNulty told residents the district could use some of the fund balance this year and some next year. However, the district doesn't want to reduce the fund balance too much because it hurts the district's ability to borrow money if there's an emergency.
In other business, residents approved a resolution by a vote of 26-3 to elect school board members on a district-wide basis rather than by areas. The school district, which includes parts of Browntown, South Wayne and Gratiot, elected board members based on eight areas within the district. The elections were done that way to make sure all of the communities were represented on the board.
Residents also voted 25-4 to reduce the number of board members from nine to seven.
The resolutions will take effect following individual elections. McNulty said one board seat has been empty for about a year and one board member doesn't plan to run for another term. He said that would bring the number of board members to seven and that no one will be removed from the board before the end of their term.