Posted: 6/16/04
By Barbara Brown
The North Branch school board may ask one more time for money to avoid having to make additional cuts in the districtís budget.
Finance director Randi Johnson presented options to the district at the boardís regular June 10 meeting. The board is considering a referendum this fall, but must come to an agreement on how much to request from voters.
The district has asked three times in the past three years for operating referenda from North Branch district property owners. All have failed. Last year, voters approved a building referendum to fund the Sunrise River School.
Several months ago Johnson had said the district can expect about a $2.5 million deficit for the 2005-2006 budget if it cannot collect an additional tax from property owners.
The school board already cut $1 million from the 2004-2005 budget and took $1.8 million from its reserve fund.
Johnson presented numbers to the district for a range of referendum amounts ñ from $450 per pupil to a maximum of $886 per pupil.
A successful levy referendum at $500 per pupil would bring $2.535 million into the district.
At $500 per pupil, taxpayers in the North Branch district with a property valued at about $150,000 could expect a $146.44 annual increase in taxes, or about $13 per month.
On a $200,000 property, the taxpayer could see a $195.25 tax increase, or about $16 per month.
The amounts are based upon the referendum amount and equity revenue.
Equity used to be paid completely by the state, but now a portion would come from property taxpayers due to changes in the 2003 Legislative session.
The last referendum request would have cost the owner of a $150,000 property about $189 for the first year with a decrease to about $140 in the second year.
Should a referendum pass this Nov. 2, the state would pay about 54 percent of the levy with local taxpayers taking on 46 percent. The same split would apply to the equity rate.
The board is weighing the amount of the referendum it will seek and if it chooses to ask for $50 either up or down, it would result in $14 less or more tax impact on a $150,000 home and $18 difference on a $200,000 home.
The school board will discuss the question further when it meets in a special work session at 6 p.m. July 8. If a decision is not be made by the start of the regular board meeting at 7 p.m. that night, the board will continue discussions after the meeting.
The districtís administration would like an answer in July as to whether the school board will seek the levy referendum so it can begin disseminating information to taxpayers.
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