The Watson Chapel School District will seek an increase of 5 mills in a special election April 10.
The school board unanimously approved a resolution recommended by Superintendent Danny Hazelwood in a special meeting Monday night.
The measure calls for a special election April 10 that will ask voters to approve a 5 mill increase to the current district millage rate of 31.80.
Of the 5 mills, 2.70 would be used for maintenance and operations and could include bonuses and raises, while 2.3 mills would be for building projects, Hazelwood said. Previously, building a new middle school has been suggested.
The board vote also included the approval of a Proposed Budget of Expenditures with Tax Levy for Fiscal Year Beginning July 1, 2013, to June 30, 2014.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“The total proposed school tax levy of 36.80 mills represents an increase of 2.70 mills in maintenance and operation mills and an increase of 2.30 mills in debt service mills for a total increase of 5.00 mills over the rate presently being collected,” the text of the budget said.
Hazelwood explained the reasoning behind the 2.70 maintenance and operation mills increase proposal.
“The purpose of the 2.70 for maintenance and operations is to use the funds for whatever we might need, including bonuses and raises,” Hazelwood said. “We need to get our teachers on board and this is the best way that I know how. The 2.3 mills is for our building projects.”
The board approved resolution states that under Arkansas law, a school board must submit to the voters the tax rate necessary to provide funds to meet the requirements of its budget for the next fiscal year and that the board is authorized to hold a special election to consider an increase in the district millage rate.
“The Board hereby authorizes the President of the Board to petition the County Board of Election Commissioners of Jefferson County to call a special election to be held on April 10, 2012, for the purpose of considering a rate of tax sufficient to support its proposed budget, including the proposed issuance of bonds,” the resolution reads. “This special election will, subject to the approval of the voters, permit the District to proceed promptly with the sale and issuance of the proposed bonds in the principal amount of $4,015,000.”
Hazelwood first discussed the possibility of asking for a millage increase during the December meeting of the school board, saying the increase will help to pay for building projects over the next five years, including the construction of a new middle school.
Budget details
Stephens Inc. of Little Rock was retained by the school district to be its fiscal agent in connection with the sale and issuance of the proposed bonds.
Stephens senior vice president for public finance Jack Truemper briefed the school board and Hazelwood on the details of the resolution and proposed budget.
“A proposed budget is usually approved during a school board’s June or July meeting prior to the annual school board election in September or in this case as part of a proposed millage increase,” Truemper said. “The proposed budget must be published one time no later than 60 days prior to the special election. So, it needs to be published in the newspaper by this Friday to be in time.”
The proposed budget for fiscal year 2013-2014 includes $14,175,000 for salary fund expenditures; $3,150,000 for instructional expense; $4,200,000 for maintenance and operation expense; $1,575,000 for pupil transportation expense; $1,050,000 for other operating expense; $375,558 for bonded debt payment and $3,900,000 for building fund expense.
“To provide for the foregoing proposed budget of expenditures, the Board of Directors proposes a total school tax rate (state and local) of 36.80 mills on the dollar of the assessed value of taxable property located in this School District,” said the text of the proposed FY2013-2014 budget.
“The total proposed school tax levy of 36.80 mills includes 28.80 mills specifically voted for general maintenance and operation, 5.70 mills voted for debt service previously voted as a continuing levy pledged for the retirement of existing bonded indebtedness, and 2.30 new debt service mills,” said the budget text. “The 2.30 new debt service mills plus the 5.70 existing debt service mills, which debt service mills will continue after the retirement of the bonds to which now pledged, will be a continuing debt service tax until the retirement of proposed bonds to be issued in the principal amount of $4,015,000 and which will mature over a period of 31 years and will be issued for the purpose of purchasing land, erecting and equipping new school facilities and making additions and improvements to existing facilities. The surplus revenues produced each year by debt service millage may be used by the District for other school purposes.”
Millages explained
Other Jefferson County school district millage rates include Dollarway at 40.80 mills; Pine Bluff at 41.70 mills; and White Hall at 39.20 mills.
The Arkansas Assessment Coordination Department provides an example of how much each one-mill increase will cost an average taxpayer in taxes.
“To calculate the tax take the house value you have chosen, $75,000 for example, and multiply this value by 20%, which is the assessment level. In this case it would be $15,000. Multiply the $15,000 times one mill or .001, which is $15. So, it can be stated that a one mill increase on a $75,000 home will cost the taxpayer an additional $15 a year in taxes.”