City schools don’t expect tax increase

New Albany school officials presented a proposed budget of about $25.4 million for the 2020-2021 year, which will not necessitate a tax increase, at a public hearing Monday.

The budget is only slightly higher than the budget for the current year and Director of Accounting Services Suzanne Coffey said new growth in assessed value in the city should more than cover that increase.

“Our assessed value looks positive. We do not plan to have a tax increase,” she said, adding that the current tax rate of 67.71 mills should continue.

She said the district tries to retain a reserve fund of about $1.5 million and next year should end at about that.

“We still don’t have a state-approved budget. We were very conservative in our calculations and we followed MDE guidance on how to budget,” she said.

The district has 315 employees with benefits and Coffey said health insurance for them may increase five percent in January. That is included in the budget in case it does happen. The cost per employee per month is $378 paid by the district.

Included in the past year’s budget, but not next year, was the $7.5-million school renovation project that upgraded the school facilities.

The total tax request from the city for district operations is about $4.8 million with $1 million added to pay for the general obligation bond for renovation and $287,000 for a recurring three-mill originally established for transportation, but now used for other needs at times.

About half the district’s revenue comes from state funds, which have not yet been approved by the legislature this year. Superintendent Dr. Lance Evans said, at least partly due to that, “We are being very conservative with taxpayers’ money,” adding they were trying to be prepared in case a situation arises where things get worse.

Concerning the conservative budgeting, Coffey reassured trustees that “We have not cut any services at all.”

About one-third of the revenue is from local sources and about one-eighth from federal money.

More than half the expenses are for instruction and less than one-third goes for support services. About three percent is for non-instructional services and about the same amount for debt service.

Coffey said she has to have the budget to city officials by Aug. 15 so the board may have to hold a special meeting to approve it. It cannot be voted on at the same time the public hearing is held.

In the past, the district has been able to make last-minute changes, if needed.

By law, city aldermen have to grant the amount of tax revenue the schools ask for. The schools seek a dollar amount and it is up to the city to convert that into a tax millage rate based on the total assessed value of the city and how much each mill would bring in.

People living in the added territory of the district outside the city limits do pay city school tax but, contrary to the belief of some, they do not pay both city and county school tax. The tax notices sent in the mail state which is which.