The Buffalo-Hanover-Montrose Dist. 877 School Board heard from staff that the school levy and tax rate will decrease.
The proposed levy needs to be approved by Oct. 1. Staff said that due to the number of inputs that go into the levy document, school districts have the option to approve the levy at the “maximum” to allow for any final adjustments to be made before the levy is sent to the county auditor’s office for use with the Truth in Taxation notices.
The Dist. 877 levy is currently showing a total of $12,310,331. This is a 3.72% decrease from last year or a decrease of $475,959.
Staff said there are a number of factors that affect the calculations including but not limited to enrollment, property valuations, actual expenditures in certain programs, equalizing factors set in statute, district population, and voter approved ballot questions. Specifically for this year, the reductions and additions come in the following areas:
• Greater equalization from the state in operating referendum and operating capital
• A district reduction in OPEB pay as you go levy and reemployment levy
• A reduction in the health and safety levy due to lower costs than projected
• Addition of the board authorized operating referendum
• The legislatively added student achievement levy
• Reduction in the integration levy due to lower funding levels
• Less reductions in levy for prior year adjustments than in the past year
• Programmed reduction in debt service and a higher debt excess reduction than in prior years due to lower debt service requirements
The board was told there are still a few adjustments to be made that should increase the levy in total slightly, including Career and Technical Education levy corrections and Health and Safety final adjustments. Based on preliminary numbers from the county and the proposed decrease in the levy, staff said it appears that the school tax rates will go down.
The district will host its Truth in Taxation hearing as a part of the Dec. 9 school board meeting to discuss the 2013-14 budget and the proposed 2013 Payable 2014 levy and approve the final levy.