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District closer to tax increase
By Ray Weikal
It looks more likely that Park Hill School District property owners will be paying higher taxes this year.
The Board of Education approved a $150.4 million spending budget for 2008-2009 during its June 26 meeting. The budget was compiled by Chief Financial Officer Paul Kelly under the assumption that a nearly 5-cent levy increase will be approved by board members in August.
Every year, state officials let school districts know what they will be allowed to ask from taxpayers, Kelly explained. In 2007, the district actually set the levy at $4.65, which was about 4 cents below the state-mandated maximum, Kelly said.
Recently, Kelly was informed that Park Hill School District’s new tax ceiling is $4.69 per $100 of taxable valuation. District officials want to increase the levy to the maximum allowable.
“This budget has been proposed to close that gap,” Kelly said.
A new state law will freeze local property tax rates starting this fall. If the district doesn’t move fast to reclaim the “voluntary rollback,” Kelly said, it won’t be able to increase rates without a public vote.
If approved, the tax rate increase would amount to another $17 from the owner of a $200,000 home, Kelly estimated.
The 1-cent tax rate ceiling increase approved by the state for Park Hill School District is unusual, Kelly said. The reason for the change is that the district has not received as much money from utility and railroad taxes as was assumed by state officials, Kelly said.
“We ended up not getting all the revenue,” he said. “This is the first time I can remember that this has occurred to us.”
The state’s utility and railroad tax assumptions plus mandated rollbacks have meant consistently lower tax levies since 2002 in the school district, Kelly explained.
The state’s largess could easily disappear next year, according to Superintendent Dennis Fisher. District officials never just assume that the tax rate ceiling will remain the same, Fisher said.
“They could raise it again, and they can lower it again,” he said.
Kelly asked the Board of Education to consider setting aside the tax rate increase as a capital projects levy and using the money for improvements to facilities and equipment.
“We see an ongoing need for capital projects,” Kelly said.
Board member Fred Sanchez quizzed Kelly about whether the money would be better spent on other areas that are being impacted by inflation, like fuel and food costs.
“The cost per student continues to rise,” Sanchez said. “The cost per student certainly includes more than capital, would you agree?”
District officials believe that long-term investments are a wiser choice, Kelly replied.
“Capital would be an item with some longevity to it,” he said.
Staff writer Ray Weikal can be reached at 389-6637 or rayweikal@npgco.com.
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The Board of Education approved a $150.4 million spending budget for 2008-2009 during its June 26 meeting. The budget was compiled by Chief Financial Officer Paul Kelly under the assumption that a nearly 5-cent levy increase will be approved by board members in August.
Every year, state officials let school districts know what they will be allowed to ask from taxpayers, Kelly explained. In 2007, the district actually set the levy at $4.65, which was about 4 cents below the state-mandated maximum, Kelly said.
Recently, Kelly was informed that Park Hill School District’s new tax ceiling is $4.69 per $100 of taxable valuation. District officials want to increase the levy to the maximum allowable.
“This budget has been proposed to close that gap,” Kelly said.
A new state law will freeze local property tax rates starting this fall. If the district doesn’t move fast to reclaim the “voluntary rollback,” Kelly said, it won’t be able to increase rates without a public vote.
If approved, the tax rate increase would amount to another $17 from the owner of a $200,000 home, Kelly estimated.
The 1-cent tax rate ceiling increase approved by the state for Park Hill School District is unusual, Kelly said. The reason for the change is that the district has not received as much money from utility and railroad taxes as was assumed by state officials, Kelly said.
“We ended up not getting all the revenue,” he said. “This is the first time I can remember that this has occurred to us.”
The state’s utility and railroad tax assumptions plus mandated rollbacks have meant consistently lower tax levies since 2002 in the school district, Kelly explained.
The state’s largess could easily disappear next year, according to Superintendent Dennis Fisher. District officials never just assume that the tax rate ceiling will remain the same, Fisher said.
“They could raise it again, and they can lower it again,” he said.
Kelly asked the Board of Education to consider setting aside the tax rate increase as a capital projects levy and using the money for improvements to facilities and equipment.
“We see an ongoing need for capital projects,” Kelly said.
Board member Fred Sanchez quizzed Kelly about whether the money would be better spent on other areas that are being impacted by inflation, like fuel and food costs.
“The cost per student continues to rise,” Sanchez said. “The cost per student certainly includes more than capital, would you agree?”
District officials believe that long-term investments are a wiser choice, Kelly replied.
“Capital would be an item with some longevity to it,” he said.
Staff writer Ray Weikal can be reached at 389-6637 or rayweikal@npgco.com.