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| School tax levy for 2009 will go down |
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| Friday, 12 September 2008 | |
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Cliff Buchan News Editor A proposed property tax levy for residents of the Forest Lake Area School is now in place — well, sort of. Meeting in special session Thursday night, the school board voted 6-0 with one member absent to approve the proposed levy with the understanding adjustments will be factored in before the board acts in December to ratify the final levy for property taxes to be collected in 2009. “This is still a work in progress,” said Larry Martini, director of business services. Although several key elements of the levy are to be determined, Martini predicted the school tax levy would be smaller than the levy approved a year ago. Some $500,000 in unknown expenses will fall to levy categories and must be added, perhaps by the end of the month, Martini said. Once that happens, the district will see a proposed tax levy of approximately $16.2 million payable in 2009. That compares to $16.3 million that the district certified for collection in 2008. The changes The $500,000 of the unknown spending falls in three areas, Martini said. The district is still finalizing a lease with the Forest Lake Area Athletic Association for ice time rental at the new sports center complex in Forest Lake. The district will also lease space to relocate its off-site special education (transition and day treatment) programs to the Arthur’s Furniture Building, 467 W. Broadway Ave. The store is going out of business and the building has been sold to Gaughan Companies which will in turn lease the facility to the district. The two leases are expected to be in the area of $250,000 as an expense in the building lease area. A third component is a $10,000 expense for fees related to golf course rentals for use by the secondary school golf programs. The district is also projecting to add $220,000 of lease expense to the health and safety area. Martini said the department of education is now reviewing proposed projects for funding eligibility. The remaining $30,000 of unknown levy expense will be assigned to the ice arena deficit levy. The deficit is tied to final district expenses related the Maroon and Gold Ice Arena operation which is being phased out this fall with the opening of the FLAAA sports center. Other factors The final property tax levy for 2009 will also see negative and positive impacts from state and local decisions. On the positive side, a bond refinancing program that secured lower interest rates for district debt service will mean a drop in the funds needed to cover bond payments in 2009. Debt service payments will decrease by $323,783 in 2009. Over the course of the bond issuance period, Martini said district taxpayers should see more than $1 million in savings. That action drew praise from board member Rob Rapheal. “This is a reflection of the good work of your department,” he said to Martini. On the down side, actions by the state legislature in 2008 will result in some funding shifts from state aid to local property taxes. Under those state mandated shifts, just under $120,000 in Community Service funds for Early Childhood Family Education and School-Age Care have been shifted from state aid to the local property tax base. District property taxes will also be hit harder in 2009 for the local share of funds to support the Q-Comp alternative compensation program for teachers. That property tax hit will grow by $127,585 in 2009 as part of the general fund levy. For 2008, the alternative compensation levy was $516,857 with the amount growing to $644,442 for taxes in 2009. Social Bookmarking ...       |
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