School Board Caps Potential Tax Increase at 1.7 Percent

The Board of School Directors voted not to take retirement exceptions for the 2012-13 school year, therefore capping a tax increase at 1.7 percent. The board also received updates on the ongoing Springton Lake renovations at its Dec. 15 meeting.

Board Votes 'No' On Act 1 Exception

In a unanimous vote at Thursday night's meeting, the school board approved a decision to not take the Act 1 retirement exception to which the school district is entitled, thereby capping any 2012-13 tax increase at 1.7 percent.

The reviewed 2012-13 revenue budget includes a 1.7 percent tax increase, or a $78 tax increase for the average residential assessment, according to the school board. RTMSD qualifies for a retirement exception, under which the district would be permitted to raise taxes an additional 1.2 percent to pay for retirement funding for teachers—for a total of a 2.9 percent increase, or a $130 increase on an average residential assessment.

Taking the retirement exception would not tie the district to a 2.9 percent tax increase, but it would raise the tax increase cap from 1.7 percent to 2.9 percent, school board member Bill O'Donnell said after the meeting.

The board, however, unanimously voted not to take the exception.

"At this time, we're saying we can make the required payments to PSERS [Public School Employees' Retirement System] without that increase," O'Donnell said. "… Understanding the environment that the taxpayers are living in, if we have any tax increase we want to make sure it's as minimal as possible. We believe we can live within the Act 1 index this year, and we didn't need the additional tax revenues. … We heard our residents."

While the district could have taken the exception and still chosen to keep taxes below the 1.7 percent mark, not taking the exception communicates the board's intent to residents more clearly, O'Donnell said.

"In the past, we've taken exceptions and not used them, and residents hear the higher rate and react to that, though it was never our intention [to use the increase,]" he explained. "So we've changed the way we do this … so that our residents don't get a misperception of our intent."

The actual tax increase for the 2012-13 school year is not yet decided, Director of Management Services Grace Eves said.

According to a report from Eves to the school board, dated Dec. 6, the board has requested three tax scenarios—increases of zero percent, 1 percent and 1.7 percent—to be presented at a future Finance Committee meeting. The administration will use fund balance to balance the budget.

Springton Lake Construction Updates

Dennis Cini, project manager for the upgrades to , updated the board on progress made at the site.

The auditorium is now complete and the pool is active, and flooring in the middle school's lobby should be completed by the first week of January, Cini said. The music suite is in-process and should be usable by mid-January.

The contractors intend to use the upcoming school holiday to continue working.

"The only day they're off, I think, is the day after Christmas," Cini said. "Other than that, they'll be working the whole holiday."