Ark Valley News - School district proposes property tax hike

School district proposes property tax hike
By Chris Strunk
Last Updated: August 06, 2015

The Valley Center school district is proposing a property tax increase for 2015-16 and officials are floating the possibility of a bond issue for building improvement projects.

Neither measure has been approved.

The school board on Aug. 3 voted 7-0 to publish a budget for next year that includes an overall property tax mill levy of 62.304 mills, up from 59.894 mills in 2014-15. That's an increase of 2.41 mills. If the budget is approved, the owner of a $150,000 home in the school district will pay about $43 more in taxes next year.

The increased tax revenue will be used for general operations.

Superintendent Cory Gibson said state funding for 2015-16 is based on 20014-15 expenses, thanks to a new block grant system Kansas lawmakers approved earlier this year. The system freezes funding for the next two years.

Gibson said the district is expecting about 50 additional students this school year.

The budget seeks the authority to spend about $34.5 million next year. The budget is expected to see sharp increases in capital outlay and KPERS transfers. The additional property taxes essentially make up for the loss of state aid, officials said, raising about $295,000, based on assessed property valuation, which increased by about 2 percent.

In the budget, the district has one additional elementary teacher and all teachers, administrators and staff will receive pay raises.

A public hearing on the budget will take place at 6:55 p.m. Aug. 17. After the hearing, the board will give a final vote on the spending plan.

Also this week, Gibson started a discussion on the possibility of seeking a bond issue for facility improvements in the district.

Specifically, Gibson said he is concerned about the lack of storm shelters in three buildings — Wheatland, the middle school and the intermediate school — as well as aging infrastructure and growing elementary populations.

"I believe it is time for our community to review these needs and determine how a bond issue may assist us in making our schools safer, more secure and adequate for the years to come," Gibson said.

The district's last bond issue was in 2008, which raised money to build a new high school, District Office, softball and baseball diamonds and a transportation building and make improvements to nearly every other facility in the district. The $57 million bond issue is scheduled to be paid off in 2028.

However, the board began considering this week whether to refinance those bonds, extend them for five years and make room for an additional bond issue. The board looked at two scenarios — $15 million and $19 million. Both would extend the payoff to 2036 without increasing the current property tax mill levy. The higher bond issue assumes that state aide on debt service after 2016 would be 45 percent as opposed to 28 percent.

"The timing might be right for the community to look at our facility needs," Gibson said. "… It's a community decision."

Whether or not the district seeks another bond issue, which would have to face a public vote, the board likely will restructure the 2008 bond to extend the payoff date another five years. If left alone with no increase in taxes, the district's bond and interest fund would go into the red in 2024, thanks in part to slower than anticipated increases in the overall property valuation.

In other business Aug. 3, the board:

•Approved a supplemental contract for Tammy Venning (Tier 2 mentor, Wheatland, $500, Aug. 6).

•Approved the hiring of Crystal Reyes (nurse aide, Abilene, $12 per hour, Aug. 12), Rose Babcock (bus driver, $12.60 per hour, Aug. 7), Rudy Wildman (bus driver, $11.20 per hour, Aug. 7) and Sheila Shul (Title 1 aide, intermediate school, $10.20 per hour, Aug. 12).

•Accepted resignations from Christina Wallman (Title 1 aide, intermediate school, July 15), Donna Kinkaid (library aide, West, July 13), Paul Davis IV (lunch aide/custodian, Abilene, July 24), Juanita Capps (cook, Aug. 1), Steve Duarte (custodian, middle school, July 30), Heidi Miller (bus driver, July 24) and Cara Weishaar (at-risk aide, Abilene, July 23).

•Approved a transfer for Melissa Fehrenbach (from 3.5 hours to 8 hours, administrative assistant, middle school, $11.45 per hour, July 30).