Concerned community members gathered at Michigan City High School Thursday evening for a public information session regarding a property tax levy recently proposed by Michigan City Area Schools.
In a presentation provided by Lance Werner, chief financial officer for MCAS, and Todd Samuelson, a representative from Umbaugh and Associates accounting firm, the public was informed of the various reasons the board elected to proceed with the referendum.
For the past few years, the school has been experiencing increasing financial troubles caused by decreasing revenue. According to the presentation, this decrease is largely due to property tax caps, tax reform, an end to stimulus funds, declining enrollment and county tax issues.
In attempts to balance the budget, the district has made $3.2 million in cuts over the last two years, primarily in staff cuts.
According to future projections, “anticipated expenditures will out-pace anticipated revenues,” Samuelson said. “We all know what that leads to, reduction in staff and larger classrooms.”
Samuelson further estimates that “absent any type of revenue enhancement,” the district’s general fund in 2020 will show a $40 million deficit.
The “revenue enhancement” proposed by the school board is a temporary property tax increase of a maximum of 17 cents per $100 of net assessed value, generating $5,578,000 for the school corporation. Voters will decide this issue in a special election scheduled for November 13.
The ballot question will read, “For the seven calendar years immediately following the holding of the referendum, shall Michigan City Area Schools impose a property tax rate that does not exceed 17 cents per 100 dollars of assessed valuation and that is in addition to all other property tax levies imposed by the school corporation?”
Samuelson reminded the public that the increase is not 17 percent and that the increase is figured after deductions have been subtracted from the fair market value. For example, the yearly tax impact on a home valued at $100,000 would be $55.68, or $4.64 per month.
He also stated that this will be a temporary increase, impacting taxes from 2014 to 2020.
Samuelson further estimates that “absent any type of revenue enhancement,” the district’s general fund in 2020 will show a $40 million deficit.
The “revenue enhancement” proposed by the school board is a temporary property tax increase of a maximum of 17 cents per $100 of net assessed value, generating $5,578,000 for the school corporation. Voters will decide this issue in a special election scheduled for November 13.
The ballot question will read, “For the seven calendar years immediately following the holding of the referendum, shall Michigan City Area Schools impose a property tax rate that does not exceed 17 cents per 100 dollars of assessed valuation and that is in addition to all other property tax levies imposed by the school corporation?”
Samuelson reminded the public that the increase is not 17 percent and that the increase is figured after deductions have been subtracted from the fair market value. For example, the yearly tax impact on a home valued at $100,000 would be $55.68, or $4.64 per month.
He also stated that this will be a temporary increase, impacting taxes from 2014 to 2020.
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http://www.heraldargus.com/articles/2013/08/23/news/local/doc5216d24732bba049927167.txt
