Friday, October 15, 2010

Referendum Update 10/15

Districts across the State have received their certification of aid from the Department of Public Instruction (DPI). With these numbers now known, districts have a much easier time predicting the potential effects of a new referendum. Based on the amount of State aid, the District's equalized property values, and the number of students in the building, we have determined that the mill rate for this school year (effective November 1st) is 13.7 (this is up from the predicted 12.4-12.8 because of the sharp drop in equalized property values and the loss of some State aid).
This increase in mill rate is due to a couple of factors. First, the District's equalized property value fell sharply by approximately $2 million (this figure was provided to Districts during the first week of October); this in conjunction with a decrease of $100,000.00 in State aid and higher building bond payments than in previous years, caused the overall increase in the levy and corresponding mill rate.

What effect does this have on the proposed referendum?
First of all, the levy predictions have changed from what was previously given. In the first year of the new referendum (2011-2012) the predicted mill rate is: 15.0 (the previous prediction was 14.0-14.5). The predicted mill rate for for the second (2012-13) and third (2013-14) year of the proposed referendum are: 13.4 and 13.8 respectively.
It is important to emphasize that the largest increase in property taxes for school purposes will be from last year to this year. This would have happened REGARDLESS of plans to go to voters with a new referendum. Please keep in mind that the new referendum will not take effect until next school year (2011-2012)and that the relative cost to taxpayers if the new referendum passes is going to be roughly the same as was originally predicted.


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