Jun 7, 2013 3 min read

Washington School Board on Monday unanimously approved its 2013-14 budget that includes a 3-mill tax increase.

The budget, which totals $24,863,812, will raise real estate taxes from 130 to 133 mills.

The increase was needed primarily to meet the district’s pension obligations. While the 3 mills will generate $180,000, the pension increase for the coming year will be $245,000, said Rick Mancini, director of district operations.

Last month, Washington applied to the state Department of Education to raise its tax inflation index beyond 130 mills. Although approval was given for up to 5 mills, Mancini said an increase in earned income tax revenue and some reductions allowed the district to stay with 3 mills.

Mancini said the real estate tax increase would have translated into $23.60 more for the average homeowner, but an increase in gaming revenue to the district gives property owners a $10 credit. The average homeowner will pay $13.60 more in taxes.

There are four main categories that have been driving the district’s costs in the last decade: health care, retirement, cyberschool and outside tuition to other schools.

In the past 10 years, increase in health care has been 44 percent and tuition 104 percent. The jump in cyberschool costs has been 600 percent since 2002, but Mancini said the district has actually reduced that amount now that it operates its own cyberschool.

Pension costs remains the biggest expenditure, having risen from $144,000 in 2002 to more than $1.7 million in the 2013-14 budget, a 1,100 percent increase.

Also at the meeting, board members listened to a presentation by Community Development Corp. board members Rich Cleveland, Scott Putnam and solicitor Lane Turturice.

The corporation was formed by the city about a year ago, said Cleveland, under a new state law that allows such agencies to take control of dilapidated or tax delinquent properties for development.

Known as the Land Banking Act, it allows the CDC to form an authority to “bank” properties that fall under the above categories as well as foreclosed properties and those in sheriff’s sales.

Cleveland said their plan is to set up a land bank authority. Its board must include at least one voting member who is a community resident and is a member of a civic organization but who is not a public official or municipal employee.

“We just came tonight to introduce the CDC to the board, let them know where we’re at and to start the ball rolling on an intergovernmental cooperation agreement,” said Putnam.

There are three properties that the CDC is attempting to acquire right now, Turturice said.

“Information has been sent to the board, and we’re asking them to act on that and forgive the taxes on those three properties,” said Turturice. “These are properties that are being donated to the CDC. As a condition of the donation, the taxes have to be forgiven.”

Staff writer Christie Campbell contributed to this report.