Mt. Pleasant School District property tax levy drops by 1.5 cents per $1,000 taxable valuation

By BROOKS TAYLOR

Mt. Pleasant News

Mt. Pleasant Community School District?s property tax levy will show a miniscule drop of 1.5 cents per $1,000 taxable valuation, according to Ed Chabal, director of finance.

Chabal presented the budget during Monday night?s regular meeting of the Mt. Pleasant School Board. The fiscal 2015 property tax levy will be $13.857 per $1,000 valuation, compared to fiscal 2014?s rate of $13.872.

The levy will generate $6,760,248 in property tax revenue with $5,381,339 earmarked for the general fund. Mt. Pleasant also has a management fund levy ($0.47 per $1,000 taxable valuation), voter-approved physical plant and equipment levy ($0.26); board-approved physical plant and equipment levy ($0.33) and debt service levy ($1.69). The cap on the debt service levy is $2.70 per $1,000 taxable valuation.

Through property taxes, funds from other school districts and the income surtax, Mt. Pleasant will receive $8,257,020 in revenue during fiscal 2015, or 37.48 percent of its total revenue. Another $12.9 million will come from state funding and grants (58.5 percent of the total revenue) and $890,000 through federal sources.

Mt. Pleasant also has a cash reserve levy which can be used for financial emergencies, such as the state-mandate across-the-board cuts in fiscal 2010 when the district lost nearly $1,000,000 in state funding. For the next fiscal year, the cash reserve levy will be set at $775,000.

Finally, Mt. Pleasant is one of Iowa?s school districts which has the instructional support program, funded by a combination of income surtax and property tax. The state also used to contribute to the program but has not funded it for several years.

State school districts with the instructional support levy, which funds at-risk program and elementary guidance, can levy up to 10 percent of their total regular program cost. Mt. Pleasant levies six percent. The levy is a combination of property tax and an income surtax (with a maximum of 20 percent, Mt. Pleasant?s surtax is 5 percent). The instructional support levy provides $519,082 ? $443,513 through the income surtax and $75,569 from property tax.

Chabal noted that the taxable valuation of the district dropped by 1.15 percent or $5.66 million. That was primarily due to a 5 percent rollback for commercial property taxable valuation and a drop in the farmland taxable valuation from 59.93 percent to 43.4 percent. What that means is that commercial property for fiscal 2015 will be taxed at 95 percent of its assessed valuation (it drops to 90 percent in fiscal 2016) and farmland will by taxed at 43.4 percent of its assessed valuation.

The rollback on residential property increased from 52.8 to 54.4 percent, so residential property will be taxed at 54.4 percent of its assessed valuation compared to 52.8 percent this year.

A house with an assessed valuation of $110,630 will yield $834 in Mt. Pleasant School District property taxation in fiscal 2015, an increase of $23 from fiscal 2013-14.

Meanwhile, a commercial entity with an assessed valuation of $71,190 will be taxed $937, a decrease of $51 from the last fiscal year.

Finally, 40 acres of farmland in Marion Township will be taxed $739, a drop of $47.

Chabal also presented a chart including fiscal 2015 property tax levy comparisons with 14 area schools. Mt. Pleasant had the fourth lowest levy of the districts. School districts used in the comparison were Albia, Burlington, Central Lee, Danville, Fairfield, Keokuk, Mediapolis, Oskaloosa, Ottumwa, Pekin, Sigourney, Tri-County, WACO and Winfield-Mt. Union.

He also presented a 20-year history of the school district?s property tax levy. During those 20 years, the levy has ranged from $11.96 per $1,000 taxable valuation to $14.52.

The district?s fiscal 2014-15 budget shows expenditures of $32,477,370, up nearly $2 million from the $30,554,594 during the current fiscal year. The budget also includes a beginning fund balance of $5,136,980 and an ending fund balance of $5,197,242.

In other business, the board accepted a number of resignations including that of Paul Beatty, director of instruction. Beatty had been an elementary principal before assuming the director?s post. In his resignation letter, Beatty said he has accepted a post with the Mississippi Bend Area Education Agency. Beatty?s resignation is effective June 26.

Others resigning included Denae Meek, ninth-grade volleyball; Sally Fager, Van Allen one-on-one para-professional; Ardie Carlson, Lincoln Elementary School secretary; Cadey Nichting, varsity assistant volleyball; Bev Alderson, middle school math; Nichole Ellington, middle school one-on-one para-professional, and Boris Miranda, high school Spanish/middle school ELL.

Contracts were approved for Andrew Grove, high school vocal music/show choir; Ronnie Ashton, eighth-grade football; Sonja Schwenker, assistant varsity softball; Trenton Keefer, eighth-grade football; and Joni Manning, Van Allen fourth grade.

Superintendent of Schools Mike Wells, in his report, said the district has received $978,100 in state this year. The largest is the teacher leadership and compensation grant, a three-year grant, which amounts to $607,000 for each of the three years. Another $130,000 in state grants are pending.

He said the district will be much more aggressive next year in pursuing grants, noting that strategic planning dominated the current school year.

Mt. Pleasant School Board members meet again in regular session Monday, May 12, at 7 p.m. in the high school media center.