Carmichaels adopts budget with tax increase
CARMICHAELS – Carmichaels Area School Board adopted its 2016-17 budget Thursday night, increasing property taxes by 0.84 of a mill primarily to pay for the debt incurred for the school renovation projects.
The board approved a budget of $16.46 million, which is about $184,000 less than the tentative budget approved last
month.
The budget will increase the tax rate to 24.24 mills. A person whose property is valued at $50,000 will see an increase in his tax bill
of $42.
The 0.84-mill tax increase was the maximum the district was allowed to increase taxes under the inflationary index established by the state Taxpayer Relief Act.
The district this year did apply for and received exceptions from the state for increased retirement and special education spending that would have permitted it raise taxes by 1.46 mills. However, it chose to limit the increase to the index.
“We applied for the exceptions just in case the board decided to go that route,” Superintendent John Menhart said. “But right now, they didn’t feel the need to do that.”
The budget will fund all existing programs, Menhart said.
Most of the revenue raised from the tax hike will be earmarked to pay the debt on $26 million in bonds issued for the school renovation projects, he said.
The board earlier said it would raise taxes to the inflationary index for several years to cover the costs of the debt of school renovations.
Other increases in spending in the budget include retirement costs, which rose by about $230,000, and special education costs, which jumped about $116,000, business manager Amy Todd said. The district also expects to see an increase in cyberschool costs, though that often fluctuates, Menhart said, because students frequently enter and leave the cyber program.
Property owners eligible for the homestead or farmstead exception this year will receive $234.70 from the distribution of state gaming revenue. This is about $1.65 more than last year.
Menhart also reported Friday that work on the elementary renovation project appears to be slightly ahead of schedule.
In April, the board awarded $4.6 million in contracts for the project, which includes replacement of the roof and exterior doors, upgrades to mechanical and electrical systems, installation of LED lights and upgrades to restrooms to make then ADA compliant.
A new, secure main entrance also is being constructed that will require visitors to be “buzzed in” through a locked door.
The renovation project is expected to be substantially completed Aug. 19, in time for the staff to prepare the building for the start of school, Menhart said.