Schools

Howell Board Approves Increased Tax Rate For Fiscal Year 12

By a 4-3 vote the Francis Howell Board of Education approved a tax rate of $5.1852 for next year.

The Francis Howell Board of Education approved a new tax rate that will impact fiscal year 2012.

By a 4-3 vote, the Board of Education raised the tax rate to $5.1852—up from the 2010 rate of $5.0008. Board Director Mark Lafata, Treasurer Mike Hoehn and President Mike Sommer voted no on the rate.

Using Francis Howell Chief Financial Officer Kevin Supple's basic formula that a nickel on the tax rate is worth $1 million, the rate will generate additional revenue of more than $3 million.

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As has been the plan all along, the District still maintains revenue neutrality with the increased rate. Supple's presentation Thursday night at the Board of Education meeting showed the District is relying more heavily on local funds for revenue. In 2002, 63 percent of all revenue was from local funds. The 2012 projections have seen that number jump to 71 percent. 

Supple said the reason for the increase was to offset decreases in revenue from a variety of avenues. State and federal funding continues to decline and have often been unpredictable as to when they will dole out funds. Property taxes went down nine percent in 2009 and another three percent in 2011. 

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The new rate wasn't approved with ease. Several Board members had objections to the increase. 

While the rate that was approved is revenue neutral, meaning the District will receive the same revenue in 2012 as it will in 2011, the end result is a profit. Thanks to some additional unplanned state funding for the current fiscal year, the District will be operating at a profit this year. By making things revenue neutral and going with the $5.18 increase, the revenue level will remain the same which will enable the District to make money by keeping expenditures down. 

According to Supple's forecast, the District will hit a financial quagmire in coming years. Revenue is expected to keep dropping while expenses rise. Financial year 2016 has a nearly $15 million loss of money. 

One of the issues Thursday night with the tax rate dealt with a tax levy. A $.20 tax levy is on the books until fiscal year 14. Once the levy expires, the District will be facing a shortfall of, again, using Supple's rate, about $4 million. There were several proposals Thursday that would have the District wean itself off the levy so that when it does expire, it won't be a huge blow.

Hoehn proposed a tax rate of $5.1352. He said that rate would still keep things revenue neutral, still turn a profit, but would reduce the burden on taxpayers. His proposal was voted down with Directors Cynthia Bice, Amy McEvoy, Marty Hodits, and Lafata leading the no votes. 

Lafata said the District was trying to take advantage of tax payers. 

“It’s time for us to take a stand," Lafata said. "I’m not for us raising our taxes. I’m not for it.”

The longtime Board member motioned to have the tax rate remain the same. He did not receive a second. 

Lafata said that he didn't think the money generated by the increased tax rate would help things because it's just going to sit in the bank. Lafata also pointed out that Francis Howell has a higher tax rate than nearby Districts—Orchard Farm, St. Charles City, Fort Zumwalt and Wentzville all have rates between $4.55 and $4.58. Supple said the rate has been higher for a few years, partly because Francis Howell doesn't get revenue from Mid Rivers Mall or casinos like other districts. He also disagreed that the money wouldn't help. Supple said that money produces results.

Superintendent Dr. Pam Sloan gave an impassioned plea to approve the $5.18 tax levy to help out the District. Sloan said that with the heavy reductions made to the budget prior to the start of school this year, things have been difficult. Teachers are working with more kids and working more hours.

Sloan said that poverty is on the rise and the only way to get out of poverty is through education. 

According to Supple's research, a home valued at $195,000, the median value for the district, would receive a savings of $20 if the tax rate were $5.13 as opposed to $5.18. Sloan said she would be happy to give up the extra $20 to help out. 

"I would be willing to give the district my money to continue to provide the education we have," Sloan said. 

Lafata disagreed that money provides education. He cited numbers that show private schools cost per child is less than that of public schools. Sloan thought outerwise. 

"It’s too tight to do the work that needs to be done," Sloan said. 

After the long debate, the $5.18 rate was put up for vote and passed 4-3. 


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