Electorate authorizes levy

PLYMOUTH – Members of the School District’s electorate voted to authorize the School Board to levy a proposed tax of $10,628649 for 2009-10, during the Sept. 16 annual meeting.

The projected tax rate for 2009-10 is $7.89 per thousand valuation, or $789 for the owner of a $100,000 home.

Last year’s tax rate was $7.06 per thousand valuation, or an increase of 83 cents per thousand valuation this year.

Seventy school district taxpayers were present at the meeting, and the majority voted in favor of the proposed levy, which reflects an 11.78 percent increase over last year’s levy of $9,574,030.

The reason for the high increase is due to the decrease in state aid the district is to receive for 2009-10 – $619,000 less than last year.

The total levy for 2009-10 is comprised of the following components:

. Fund 10, general fund – $8,825,546. . Fund 80, community service – $250,000. . Fund 30, debt service – $1,375,838 and . Fund 38, WRS refinancing levy – $177,265.

The projected expenditure budget for Funds 10 and 27 in this year’s budget is $28,691,901.

The projected revenue limit for 2009-10 is $22,132,128 or a 2.2 percent increase over last year’s revenue limit of $21,652,119, an increase of $480,009.

The projected equalized aid reflects a 4.54 percent decrease over last year’s. The projected equalized aid for 2009-10 is $13,016,558, while last year’s certified equalized aid was $13,635,749l.

The revenue limit per student for this year is $9,221.72, reflecting a 2 percent or $200 per student increase over last year’s revenue limit of $9,021.72.

Superintendent Clark Reinke and Manager of Business Services John Miller presented an overview of the development of the district’s 2009-10 operating budget, as well as a description of the school funding formula and proposed property tax levy.

Reinke noted that last year, projections of a $900,000 budget deficit for 2009-10 surfaced. Thus, the School Board and District Leadership Team conducted strategy sessions to analyze ways to grow revenue and reduce expenses.

In January, the School Board reached consensus on methods to address the deficit. The core principles were to:

. Protect the core educational programs. . Provide for instructional leadership and . Promote professional development to enhance the instructional knowledge and skill of teachers. The deficit reduction strategies, which resulted in a $210,000 surplus, were: . Reduction in transportation services – $150,000. . Salary and benefit reductions – $190,000. . Move fifth grades to Riverview Middle School – $124,000. . Other revenue sources – $10,000. . Middle school extra-curricular activities were moved to community education – $60,000. . Student activity fees – $50,000. . Federal stimulus funds – $347,000. . Staff, services, supplies and equipment – $179,000.

. Total deficit reductions – $1,110,000.

Following this process, “In May, we thought we’d have a $240,000 surplus to apply to other areas,” Reinke said.

“But in June, in the 11th hour, the State Legislature passed its budget which decreased the anticipated revenue by more than $180 per student,” he noted. “This reduced our anticipated district revenues by another $450,000, leaving us with a new deficit of $240,000.”

In order to close the gap, the board voted to close Cascade School and to eliminate some support staff positions at Cascade. And the budget for this year was balanced.

Miller then made his presentation. He described the School District as, “low-revenue, low cost, somewhat under-capitalized, and with a very low property tax.”

Reinke added, “one of the highest achieving districts.”

Miller said that the School District’s revenue per student is among the lowest 15 percent of school districts in the state.

He compared the district with a peer group of 13 school districts and a county group of nine school districts. Regarding cost per student, he said Plymouth is the second lowest within the peer group.

As to enrollment, Miller said no student enrollment growth is projected this year for the Plymouth School District. The actual count will be taken on Friday, Sept. 19.

“We are a shrinking district and will probably continue that way for the next two to three years,” he said.

Miller said there is less than a 1 percent in growth for salary and benefits, in considering the district has less people doing the same work than it had last year.

“When we realized we faced a deficit, our School District did not wait around to save money,” Miller said. “We took steps immediately to implement strategies to save services and supplies.”

Members of the electorate had some questions. Chris Waller asked whether the board could have asked for a higher levy in order for the district to provide greater services.

“No, not in a dramatic way,” said Board President Mark Rhyan, and explained the limitations under the state revenue caps.

“The only other way is through having a referendum,” he said.

Another man asked whether some staff members received more than a 3 percent raise.

“The total package for salary and benefit increases for all teaching staff members was 3 percent,” Reinke answered.

Another voter asked about the 2 percent amount budgeted for maintenance.

“There is very little in the budget to address our long-range maintenance plan,” Reinke said. “We are doing day-to-day maintenance.”

“This is definitely a concern,” Rhyan admitted. “For the long term, this is not an approach that is prudent to take.”

Board member Sally Isely said she was opposed to the steep tax increase this year. “I would like to have taken half out of fund balance,” she noted.

Another man asked Miller if district officials had anticipated the 11.78 percent tax increase.

“The reduction in state aid was a surprise,” Miller answered. “The state had to use their federal stimulus money to fund state aid.”

Reinke agreed that the district is to receive a significant drop in state aid. In other action, members of the electorate voted unanimously for the School Board to engage legal counsel as needed during the 2009-10 school year.