The School District 166 school board voted to increase the school levy by 5.06 percent—the legal limit it can levy—at its December 18 meeting, pushing the taxpayer total from $1,063,000 last year to $1,117,687 in 2015.
Before the board voted they held the district’s annual Truth in Taxation meeting. Only one person from the public attended and had no comment.
Outgoing School Board Member Ann Sullivan advocated a levy hike. She compared what she paid as a Hennepin County homeowner to a Cook County homeowner living in a similarly valued house.
In Hennepin County Sullivan said her house was valued at $285,700 and she paid $826.14 in yearly school taxes. Today her home in Cook County is valued at $290,500 and she pays $237.09 in the school district approved levy. Counting the voter approved excess levy referendum levy ($59.67 per year for Sullivan) she pays $296.76 in total taxes to the school district.
Superintendent Beth Schwarz said the proposed levy increase was less than three other similar sized districts and higher than one district about Cook County’s size.
Board Chairman Jeanne Anderson said she felt comfortable with increasing the levy, noting it was going to the children. The other board members Sissy Lunde, Deb White and Sullivan echoed her comments and voted for the increase.
Superintendent Schwarz presented a 2014 expenditure analysis that explained why the district was down to $30,000 in its fund balance.
Typically school districts work to have 35 days of operating expenses in fund balance. In June of 2013 the district had 35 days of operating expenses ($1,340,000). It costs about $29,600 per day to operate the school, so the district has a little over one day of cushion.
On December 2 the School District Finance Team met and agreed to recommend that the school board pursue an operating levy in the fall of 2015. They advised the superintendent to set up a referendum task force.
Where did the money go?
Schwarz said she and Business Manager Lori Backlund looked extensively at the budget to see where the money had gone. Some items that came in over budget included $39,306 for staff development; $18,797 for the gifted/ talented program; $39,138 for propane; $19,630 for water/electric; $39,322 for athletic programs; $30,842 for the district’s commitment to hire top-notch teachers; $16,224 for district support and $37,566 for faculty improvements. These items totaled $240,809.76.
Unbudgeted items totaled $627,006.15 and included $17,282 for summer staff; $18,000 for glycol for heating system; $11,894 for lane changes (step increases); $14,133 for snow removal; $47,066 for a kindergarten teacher; $45,893 for retirement costs; $65,876 for expenses from donated funds; $139,780 to hire a second principal; $46,505 for student support; $46,551 for additional staff and benefits; $71,893 for computer capital leases and $69,775 for reimbursable propane.
“We were surprised at how much we overspent,” Schwarz said. “Am I frustrated? Yes. I am frustrated but we will hold costs down going forward,” said Schwarz.
One thing that will help is that Backlund will now do payroll as well as maintain the budget. “It will be seamless,” said Backlund, adding that it will be far easier now to trace where the money is being spent.
Following the TNT meeting the board decided to borrow $450,000 in order to meet its fiscal obligations. The interest rate cannot exceed 3 percent. The date of issuance for the loan will be January 28, 2015 and maturity date is August 25, 2015.
Resignations and recommendations
Board Member Ed Bolstad submitted a letter of resignation from the school board following some health problems. The board accepted his letter with deep regrets and wished him a speedy recovery.
Bob Brandt, Community Education driver’s education instructor was granted an hourly pay raise from $22.72 to $25 per hour, retroactive to July 1, 2014. Brandt has not received a raise in pay since 2010.
Brandt noted in his request that the Duluth school district driver education instructor received $40 per hour and the Lake County driver education instructor was paid $35 per hour. Brandt said he didn’t want paid at those rates because the students pick up that tab, but he did want to catch up to where he should have been on the current salary scale four years ago.
The board approved a recommendation to hire John Praximer as homebound instructor for the district at a rate of $26.72 per hour. When school board member Sissy Lunde asked what a homebound instructor did, Schwarz replied that some students who suffer from a long illness or have some other problems that prevent them from attending school can still attend with the aid of a homebound instructor.
Long time school bus driver Sandy Furlow submitted a letter of retirement effective December 31, 2014. The board accepted her resignation with many thanks for her tremendous service and wished her the best.
Emily Dennison was hired as an Early Childhood assistant at a rate of $13 per hour.
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