School District Taxes May Go Down Sooner Than Expected

Ankeny School District taxpayers may see some relief quicker than originally anticipated.

Ankeny School District Superintendent Matthew Wendt gave the Board of Education an update regarding the district’s finances during the board’s regular meeting Monday night. Fiscal year 2012 school tax rates were lowered by $1.27 per $1,000 of assessed valuation, according to Wendt’s report.

The rate had been increased to $2.51 the year prior.

“I know (the district has) taken some abuse over the tax increase, but it’s really going to be fun from here on out, because our financial situation is going to improve and at the same time you’re going to be able to reduce tax rates,” said Craig Hansel, the district’s chief financial officer.

Wendt said the decrease could happen due to cost-cutting measures taken in previous years and higher than projected revenues. Because of this, the one-time temporary tax increase for district residents could be erased at a more rapid pace than first projected.

The school board also decided Monday night to borrow money from its facilities fund in order to weather the district's recent lack of state funding.

The board approved an interfund borrowing resolution at its regular meeting, which school officials said has been typical procedure because of a lack of state aid and property tax revenues during the summer months.

“We continue to have monthly payrolls, we purchase all the supplies and materials for the following school year – there’s a lot of cash outlay,” said Craig Hansel, the school district’s chief financial officer.

Hansel projected the district would have run short by nearly $3 million.

The action taken by the board allows the district to borrow money from its building and facilities fund at a low interest rate, rather than from an outside source, Hansel explained.

“When we get our first property tax distribution in October, we always repay these dollars and we haven’t had to use them again for the rest of the year,” Hansel said.

Board Member Todd Shafer wondered why such borrowing was necessary when the district’s budget is set for 12 months.

Hansel said because cash reserves haven’t been adequate enough, the in-house loan was needed.

“Our fund balance has not been very healthy and that’s why we’ve had the taxation policies we’ve had in place to improve our fund balance and once that does improve in the next year or two, we’ll stop interfund borrowing at that point,” Hansel said.

Other updates to the board included:

• Brief progress reports made with ongoing construction projects. Don Peterson, director of facilties construction and development, reported that projects have been coming along as scheduled. Wendt mentioned an issue has come up with the terrazzo floor in the common area of Ankeny Centennial High. Wendt said there were minor “dips” in the flooring “about the depth of four sheets of paper” stacked on top of one another. He said he could not provide any additional information other than it would be remedied sometime during the year when students are on an extended break from school.

• Director of Information Technology Brad Johnson presented a report on the district’s technology plan. Johnson’s report cited several areas of recent improvements like upgrading Internet bandwidth, wireless system upgrades and computer replacements, which are currently being replaced on a cycle of five years. Shafer mentioned the department should look into leasing equipment on a four-year basis.

• Review of the district’s five legislative priorities. Board Member Andrew Martin said he’d like to see a sixth added regarding “when and how school funding occurs” with the state legislature.