Web posted
Tuesday, August 26, 2008
Schools approve budget
Tax rate increase, along with a bond issue, will cost the average homeowner $71.30 more per year in taxes.
By FOSS FARRAR
Traveler Staff Writer
reporter@arkcity.net
The local school board Monday night adopted a $19.4 million budget and gave teachers and other USD 470 district employees a 3.5 percent to 3.6 percent salary increase.
Before the board approved the 2008-09 school district budget, it asked for any public comment, but no one but a member of the press showed up for the meeting.
The adopted budget will increase the mill levy rate for residents in the district by 6.2 mills. The mill rate increase would increase property taxes on a $100,000 home by $71.30, according to Cowley County Clerk Karen Brooks.
At a July meeting, the administration had recommended an increase of 8.2 mills for this year's budget. But at that meeting, the school board tabled the proposal and asked administrators to trim its operating budget.
Administrators brought back the new version at the board's Aug. 11 hearing and approved publication of the revised budget. It was adopted Monday night.
"We kept the mill levy rate at what we promised voters for our $36 million bond issue project," Campbell said.
The adopted budget includes a 37 percent decrease in "general administration" costs, while keeping instructional budget about the same as it has been for the past few years, Campbell noted Monday night.
The administration budget could be cut because last year's budget included money for supplies and furnishings for the new district offices, he said. Capital outlay costs also have been decreased significantly because of last year's road and parking lot project at Arkansas City Middle School. The project on C Street was to accommodate a planned overpass project over railroad tracks just east of the middle school on Kansas Avenue.
The two-year teacher agreement approved by the board is the result of collective bargaining between the district administration and the Arkansas City Teachers Association.
Besides receiving a 3.62 percent pay increase, teachers will have a total benefits increase of 4.79 percent, Campbell said. That includes health care and other benefits.
The board also approved a 3.5 percent pay increase to non-teacher district staff.
In addition, those employees who have between 20 and 24 years experience with the district -- and have spent the last five years with USD 470 -- will be paid a longevity bonus equal to 3.5 percent of their base contract salary for the current year.
Employees who have more than 24.5 years of experience with the district are to receive a longevity bonus of 4.5 percent of their base salary.
Associate Superintendent Jan Voss updated the district's enrollment figures. She told the board that total enrollment now stands at 2,846, an increase of about 60 students since Aug. 20. A year ago at this time, enrollment was 2,890.
"But it wasn't the 11th day of attendance -- which comes this year on Friday -- and we ended up dropping some students after we received requests for their records from other schools," Voss said. "This year, we are paying more attention and taking students off our rolls as soon as the request from other schools is made."
The board also tabled a previous recommendation to proceed with a repurchase investment of $35.8 million in bond funds. The bonds were purchased for a district-wide schools renovation project, approved by voters in March.
At a meeting on Aug. 11, the board had approved bid specifications from PiperJaffray, the district's bond counsel, and the seeking of bids for a Full Flex Repurchase Agreement for the investment of bond proceeds. Bids were to be brought back to the board by Aug. 25.
But because of a "challenging financial market," school administrators suggested the board keep its bond proceeds in a Kansas Municipal Investment Pool and table the plan to enter a repurchase agreement.
"Due to financial problems in the market, financial providers are running short of collateral and are not willing to invest in full flex agreements at this time," Assistant Superintendent J.K. Campbell told the board.
The MIP where bonds are now held generates approximately 2.19 percent interest, Campbell said today.
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