A dozen residents on Monday approved an $8.9 million tax levy for the Oconto Falls School District, an increase of 4.6 percent over last year’s levy of $8.5 million.
The levy includes referendum funding approved by voters earlier this month, estimated at $24 per $100,000 of equalized value.
Taxpayer support and state aid are the primary sources of revenue for the school district, and for the past several years, taxpayers have paid an increasing percentage of the total. For the 2014-15 school year, the district estimates the state will contribute 59.8 percent of total revenue, down from 60.7 percent a year ago, while the burden on taxpayers increased from 32.3 percent to 33.6 percent in the same time frame.
The district is slated to receive $115,000 more in state aid this year, a 1 percent increase, but Superintendent Dave Polashek called this a small part of the total budget that’s just shy of $9 million and less than the consumer price index of 1.46 percent.
The tax rate is calculated at $10.88 per $1,000 value, up almost 3 percent from last year’s $10.58. The school tax on a piece of property valued at $100,000 will be $1,088, compared with $1,058 in 2013, an increase of $30.
The tax rate factors in a projected increase in equalized value of 1.72 percent districtwide, which is good news for taxpayers. The actual tax rate increase on an individual property is projected to increase approximately 2.78 percent.
The district adopted a budget with total expenditures of $23.9 million, a 3 percent decrease from last year. The general fund, which covers most of the school’s day-to-day expenses, is projected to increase $270,000 or 1.4 percent. Personnel expenses account for a major portion of the district’s expenses; 70 percent of general fund expenditures are connected to salary and fringe benefits.
For a third year in a row, $20,000 was added to the capital expansion fund to be used for the development of outdoor facilities, including a softball complex that opened in the spring. Last week’s passage of a referendum made funds available to build a football stadium and track at the high school, and School Board President Ron Leja said the $20,000 expenditure will cover unexpected construction costs.
Unexpected costs in the 2013-14 school year required the district to use $160,000 from its fund balance. Polashek attributed this to unusual situations of paid leave for staff members and a harsh winter, which led to higher costs for snow plowing and heating, despite energy conservation measures the district implemented with an energy savings consultant, Ameresco.
On the up side, the district finished the year with a $95,000 profit in the food service department, which Polashek attributed to good management by Taher, the district’s contracted food service provider.
Oconto Falls managed the Coleman School District’s food service program last year, which lowered the district’s fixed costs. Coleman and Oconto Falls will share some staff members in 2014-15, but their programs will run independently. Polashek said the the food service profits will be used to purchase equipment for the kitchen; the funds can’t be transferred for other needs.
The school district outsourced its food service department in 2011 when faced with mounting losses that reached $67,000 to $80,000 the previous three years.
“In a period of five years, there’s just dramatic changes in how that’s turned out,” Polashek said.
A final budget and tax levy will be approved by the School Board in October, once the official enrollment and equalized valuation figures are determined.
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