Officials answer questions about school tax levies
Staff reporter
When USD #408 taxpayers recently opened their property tax statements, some were concerned about what they saw — an increase from 2005 to this year in the bond and interest mill levy.
The school district promoted and the public approved a multimillion dollar building project this past spring. The buildings to be constructed include an indoor swimming pool, tournament-size gymnasium, and fine arts complex.
Further scrutinizing revealed the total USD 408 mill levy did not increase. In fact, it was reduced by 0.39 mills.
So why the increase in the bond and interest mill levy?
USD 408 Superintendent Lee Leiker explained it this way.
"The district is paying off an old bond while starting a new bond project," Leiker said.
The old bond was for the new middle school building and improvements to the high school. That mill levy was set at 10.436.
By the time the new buildings are completed, the old bond will be retired.
"So this year and next we will be paying on two bonds," Leiker said. "After that we'll go back to the original bond and interest amount."
To keep the overall tax rate for the district in check, another fund was reduced.
The school district has three funds from which to draw — general, bond and interest, and other. The "other" fund, according to Marion County Clerk Carol Maggard and Leiker, is a supplement of the school district's general fund.
"The board planned for this expense," Leiker said, by purchasing items ahead of schedule. In preparation for the two bond payments, the board reduced the supplemental fund from 15.765 to 8.531 mills or roughly $720,000.
So what was cut?
"By being conservative, the board was able to plan for this expense without cutting anything," Leiker said.
The general fund receives 20 mills or roughly $1,992,380, which is a state requirement. The bond and interest fund is at 17.631 mills or $1,756,382, and 8.531 mills or $849,849 is available in the "other" fund.
The general fund remained the same at 20 mills, bond and interest increased from 10.436 to 17.631, and the "other" or supplemental fund decreased from 15.765 to 8.531 mills.
The old bond will be retired in the latter part of 2007, Leiker said. The new bond and interest mill levy will be the same as the former bond and interest at 10.436 mills.
"We promised not to increase the overall tax levy and we haven't," Leiker said.
