WILMINGTON — The Wilmington City School District Board of Education voted Friday morning to remove a proposed tax levy from the March 19 primary ballot.
At a special meeting on Friday at the request of district treasurer Kim DeWeese, the school board voted unanimously to rescind the levy. The board also rescinded the transportation reduction and fees that were initially planned if the levy failed in March.
According to a news release from DeWeese, due to HB 920 (1976), “districts generally do not see a significant increase in revenue when property values rise unless there is new construction or the district falls below the ‘20 mill floor.’”
The release states the district received confirmation this week from the county auditor’s office that due to the recent increases in valuations, the school district’s effective rate is now below the 20-mill floor.
“Being ‘below the floor’ has a significant impact on how much revenue the schools receive from local property taxes,” the release states. “WCS’s Superintendent (Jim Brady) and Treasurer conferred with the Auditor’s office, as well as the Chief of Budget and School Funding, on Wednesday, January 24, to determine the approximate amount of additional revenue that the district will receive.”
DeWeese shared the draft of the updated five-year forecast that will be submitted to the state once approved by the Board of Education at the February board meeting.
“The District is now able to include in that forecast a firm number for property tax revenue that will significantly reduce the District’s annual deficit by approximately 50%,” the release states. “While the additional revenue isn’t enough to offset the annual deficit entirely, it is enough to significantly reduce it. This will allow the District to extend the current carryover funds, relieving the immediate financial stress.”
DeWeese did caution that even with the additional property tax revenue, the forecast will still show an average annual deficit of approximately $2.5 million.
“However, between the current carryover and the significant additional revenue, the Board has decided to delay asking the taxpayers for a new levy for operating funds at this time,” the release states.
The release furthers states the district committed to the following to be fiscally responsible:
● Moving the preschool to Holmes and selling the East End property. This will save the district approximately $100,000 annually in operational costs. It will also ease the transition from preschool to kindergarten.
● Continuing to utilize attrition (retirements and resignations) to adjust staffing levels each year based on current enrollment and to meet state/federal requirements for serving students with disabilities.
● Continuing to seek out additional cost-saving measures without negatively impacting the quality of services.
Brady shared that the district will be creating a ‘Cane Community Committee of caring citizens, parents, and staff to be involved in the process of fiscal planning and school progress. Through this committee, they hope to do the following:
● Foster a culture of mutual respect and dialogue
● Further the community’s understanding of school finances
● Engage the community in conversation about the state of the existing school buildings and create a shared vision for the future of the district
● Share district initiatives and school progress
The official five-year forecast will be submitted to the state and posted online as soon as the board officially approves it at the next regular meeting on Feb. 26, according to the release.
Reach John Hamilton at 937-382-2574
