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October 30,
2001
4:30 p.m. in the Board Conference Room Washington School
Committee Members
In Attendance: Board Members-Larry Brees, Valerie Umholtz
Administrative Members-Perry Soldwedel, Matt Wilkinson
Association Members-Linda Norman, Stan Mendenhall
Also in Attendance
was community observer Dan Walther.
The Finance Committee met to continue its discussion on the charge
to protect the long-term interest of the District by developing
scenarios for BOE consideration leading to a levy decision in December
2001 for the 2002-2003 school year. The focus of the discussion
was to discuss the factors that will impact the proposed increase
for the 2001 levy and the abatement action the Board will be asked
to consider at the December 17th meeting.
Issues affecting
the levy decision include:
- EAV and New
Growth Estimates
- Abatement
amount $878,587
- Salary increases
and contract negotiations
- Potential
Reduction of GSA approximately $400K
- Construction
(Washington Windows, Wilson Preschool, Building Needs Assessments)
and Life Safety Projects
- Potential
costs associated with IEA grievances
- Reducing
2 junior high positions and possibly 6-8 primary positions through
boundary changes
- Bond Debt
falling of in December 2002
Truth
In Taxation:
The committee agreed that the District must publish a Truth In Taxation
Notice and seek Board approval for such publication at the November
meeting. With the current 3.4% PTELL adjustment and projected new
construction growth dollars, the amount the District is entitled
to receive will exceed 5%. Thus the Notice is a requirement.
Determination
of Need:
The committee will recommend a 9% increase in the levy based upon
need. The County Clerk will cut the levy back to include the 3.4%
and new construction.
The following justifies the need of a 9% increase.
Projected Revenues:
$450,000 increase
in property tax
$400,000 loss in state aid
$425,000 reduction in staffing
$30,000 increase in Head Start rental
Net effect +$505,000 in revenue
Project Expenditures:
$898,000 increase
in Salaries and Benefits (5%)
$384,912 increase in purchased services and supplies (5%) and
capital outlay (3.4%), etc.
Net effect +$1.28M
Expenditures
over revenues $775,000 over prior year
Abatement:
The District has abated taxes during the last three years at the
amount of $878,587. The committee recommends the board continue
the abatement practice for the final year. It would be important,
however, for the board to realize that with the abatement the following
will be needed:
1. Utilize reserves to make up the $775,000 shortfall
2. Reduce the current budget beyond the 8-10 teaching positions.
3. Combination of 1 and 2.
With abatement, the tax rate is projected to decrease from $2.79
to $2.74 and any shortfall in revenue would require the use of reserves.
The progress made by the Finance Committee and the proposed levy
extension increase and abatement amount will be reported to the
Board in November. The Board will be asked to take action on the
levy and abatement at the December 17th meeting.
Matt Wilkinson
Business Manager
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