With approval of $35 million worth of school projects this past April, USD 257 taxpayers expected to see a tax increase in next years budget.
Yes, that tax increase is coming, but thankfully, at a much lower rate than expected.
Thats because interest rates for the bonds came in very low, translating into an increase of 18.884 mills, compared to the original estimates of 21.72 mills, to fund the construction.
For the owner of a $70,000 house, that amounts to $152 a year instead of $174.85 in increased property taxes.
And when it comes to funding everything else, the district is maintaining its current tax rate. The budget actually calls for a very slight decrease, with a tax rate of 43.441 mills this year compared to 43.536 last year.
For the owner of a $70,000 house, that amounts to $349.70 a year, a savings of about 76 cents compared to last year.
But one school board member said shed like to see even more savings, and expressed disappointment with the district for increasing its local-option budget (LOB) authority. The board voted in June to match other districts across the state in granting itself that authority, but board members said at the time they didnt intend to use it. However, this years budget allows the district to spend an additional $300,000 under the LOB. Tax rates wont increase, but the district could have lowered its mill levy by 2 or 3 mills otherwise
The tax rate isnt being increased but its raising more money and I have a problem with that, board member Jennifer Coltrane said. Voters graciously agreed to allow us the bond project. We could drop their taxes by 2 or 3 mills.
But increasing the districts LOB authority allows USD 257 to save about 60 cents on the dollar from the state, Superintendent Stacey Fager explained.
Its advantageous to the district, Fager said. I feel weve shown great respect to our patrons and our taxpayers. Were able to maintain a flat mill levy rate plus lower our bonded interest rate by almost 3 mills. To me that sounds like a great deal for our taxpayers.
THE BUDGET is based on enrollment numbers, which arent finalized until late September. The state contributes to USD 257s budget based on a per-pupil amount, with consideration given to factors like the number of students receiving free or reduced-price meals.
USD 257, like most districts in Southeast Kansas, has faced declining enrollment for many years. Fager expects that trend to continue, and estimated the district should have about 17 fewer students in the coming school year.
For budget purposes, the district predicts an adjusted full-time equivalent enrollment of about 1,224.
That means the general fund is expected to bring $10,107,048 in revenue to the district; of that, $941,939 will come from local taxes. The LOB will bring another $3,384,880 (an increase of about $370,000 compared to last year), with $846,217 coming from local taxes.
