CEDAR FALLS — Tax collections are expected to grow by just under 1 percent, but property owners will likely see a drop in the Cedar Falls Community Schools’ portion of their tax bills.
The Board of Education on Monday approved an $85.31 million 2018-19 budget, including the increased tax askings.
A total of $27.8 million will be collected from district property taxpayers for the fiscal year starting July 1, or $27,698 more than during the current year. More than half of that amount is determined by a funding formula with the remainder divided between voter- and board-approved tax levies.
“The board really only has control over about 15 percent of the total tax asking this year,” said Doug Nefzger, the district’s director of business affairs. That includes funding for dropout prevention, cash reserves, management fund, the board-approved physical plant and equipment levy and the state’s budget guarantee.
Despite growing tax collections, the property tax rate of $13.95 per $1,000 of taxable value is a 32-cent drop from this year’s rate.
“Our assessed valuation grew and the rollback changed,” said Nefzger. The rollback is a state-determined percent of assessed value taxes are calculated on. “The actual value that’s taxed is slightly less next year.”
As a result, “if your home value hasn’t changed, you’ll be paying slightly less,” he added.
For the owner of a $100,000 home, taxes would drop $36.94 to $708.78 on the district’s portion of the bill. Taxes would drop by $73.87 to $1,485.52 on a $200,000 home and by $110.81 to $2,260.26 on a $300,000 home.
Taxes also are expected to drop on commercial/industrial, multi-residential and agricultural properties. Properties valued at $300,000 would see a drop of $87.96 to $3,765.67 for commercial/industrial and a drop of $237.54 to $3,294.96 for multi-residential. For 240 acres of agricultural land, taxes would drop $60 to $2,568.60.
The budget is down from $101.08 million for the current year.
Along with tax revenues, next year’s budget includes $31.83 million in supplemental state aid, $130,000 in instructional support state aid, $741,365 in commercial and industrial state tax replacement, and $4.94 million in other state funding sources.
Estimated local funding totals $7.21 million. It includes tuition and transportation dollars, earnings on investments, nutrition program sales, student activities and sales, and miscellaneous revenue. Combined federal revenues are projected at $2.84 million.
The board also approved an amendment to the current fiscal year budget. “This is for the instructional portion of the budget,” said Nefzger.
The increase from $42.75 million to $43.58 million paid for technology equipment last July that was originally supposed to arrive a month earlier, in the prior fiscal year.