Saturday, July 21, 2001
Kings considers incremental levy
At peak, it would raise $3.8M
By Sue Kiesewetter
Enquirer Contributor
DEERFIELD TWP Del Landis doesn't like to give any government agency his hard-earned money until it's needed.
So when the Kings Board of Education determined more funds were needed to operate, he asked fellow board members to consider an incremental tax levy. He believes the community might be more willing to support it rather than the traditional 5.9 mill levy the board had considered.
Voters might be asked Nov. 6 to approve an incremental levy that begins at 3.9 mills and gradually increases to 6.5 mills by 2004. At its peak, the levy would raise about $3.8 million annually, Kings Treasurer Michael Mowery said.
With a typical levy, more money is raised in the first few years than is needed. Usually that money is invested and cash reserves are built. As expenses increase with inflation, those reserves are used to balance the budget, Mr. Mowery said. With the proposed levy, less money is collected in the first few years.
We did everything we could to minimize the impact, Mr. Landis said. We don't take money until it's needed.
Expenses now exceed revenues and the district is dipping into reserves to balance this year's and next year's budgets, Mr. Mowery said. Revenue from the state is expected to increase by 1 percent $67,000 this year and $97,000 for the 2002-03 school year. Expenses are increasing by about 4.4 percent annually.
The district ended the fiscal year last month with a $3 million balance that is expected to decrease to $2 million by June 2002. Without additional dollars or program cuts, the district would be facing a deficit the following year, Mr. Mowery said.
The gradually increasing levy would cost the owner of a $100,000 house about $119 in 2002, $159 in 2003 and $199 in 2004 and beyond, Mr. Mowery said.
We've gone eight years without a levy, Superintendent David Query said. It's time.
A vote to put the issue on the ballot is set for Aug. 14.
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