What does it mean for taxpayers?
A USD 402 budget hearing was held Thursday evening and although the public was invited, no one but BOE members attended.
The 2013-14 budget was approved as presented, 4-1. Board member Kim Braungardt cast the negative vote and board member Charles Garcia was absent.
The mill rate is one dollar of property tax levied against $1,000 of assessed valuation. One mill would cost a residential property owner $11.50 on a residence valued at $100,000. The current increase would be a $35.31 per year.
The district budget is comprised of four funds supported with property tax dollars; the General Fund, the Supplemental General (LOB), Capital Outlay, and Bond and Interest. The following table compares the mill levy for these funds from last year’s budget to the newly adopted budget.
The increase in the LOB is the result of a reduction in the district’s assessed valuation (a result of decrease in the dollar per barrel used in how oil leases are valued), a decrease in state aid and a lower encumbered cash carryover in the fund.
Even though the fund is titled Local Option Budget, in reality there is no “option” left for having this fund. When the base state aid to the General Fund is not increased to support on-going expenses the obligation is transferred to the LOB, which if funded by property tax.
Fund FY13 FY14
General Fund 20 20
LOB 20.852 23.929
Capital Outlay 3.260 3.260
Bond and Interest 17.834 17.834