A hearing to talk about a tax rate increase will be held Monday by the St. Joseph School District.
“We have the yearly tax rate hearing. You’re required to do this by statute before September 1 to set your rates for the upcoming fiscal year, 16-17 in this case,” said Dr. Robert Newhart, Superintendent with the St. Joseph School District. “We’ve taken a hard analysis and a hard look at our financial and our tax rate structure.”
Newhart said the district is looking to increase its debt service levee by 26 cents which would bring it up to a total of 57 cents. The suggested increase does not need voter approval.
“Part of the reason they were able to keep that levee at the present 31 cents from the 15-16 school year was that they were subsidizing it from operating, in the tune of 500 to $750,000,” Newhart said.
Newhart said the increase is needed to help offset the difference the debt service is needing to make payments for not only this year but calendar years 2017 and 2018.
“What I want to make sure the public understands is we’re trying to be as transparent as possible with this and it’s a corrective action step that is a responsible step that the board has authorization to make,” Newhart said. “It would take our debt service up to the debt service ceiling which needs to be done.”
Newhart said it’s necessary because the operating funds need to be used for operating and not for the debt service.
“26 cents on $100,000 assessed valuation is roughly $260 a year or $21 a month,” Newhart said. “It all is relevant to the property you own.”
The tax rate hearing will be held Monday at 6 p.m. at the St. Joseph School District downtown office located at 925 Felix St in the Board Conference Room. After the hearing the floor will be opened up for public comments.
“This can be done by statute, by board approval, they have the legal authorization to do it and they have the legal responsibility to be responsible to the school district’s debt and it’s a determination they can make and should make,” Newhart said. “After this anything else. An increase in any operating or debt service would have to be by voter approval.”