Oconomowoc Area School District Mill Rate Drops by $0.30 to $9.76
OASD School Board Unanimously Approves 2016-17 Budget and Levy
OCONOMOWOC, WI – October 28, 2016. Oconomowoc residents will see a drop in the school tax rate, thanks to enrollment growth and increased property values in the area.
On Thursday, the Oconomowoc Area School District school board unanimously approved the 2016-17 budget with a lower tax rate than last year. Under the new budget, the mill rate is $9.76 per $1,000 of equalized property value. The mill rate is $0.30 less than the previous year - a decrease of 2.98% percent.
Under the 2016-17 tax rate, the owner of a $200,000 home would pay approximately $1,952 on the school district portion of their tax bill, about $60 less than last year.
“Growing in enrollment while at the same time having the tax rate decrease is certainly a nice problem to have,” said Superintendent of Schools Roger J. Rindo, Ed.D. “Responsible budgeting and continued strong fiscal management on the Board’s part continues to keep the District in as solid a financial position as possible.”
The school board approved a final general fund operating budget of $60,963,000 for the 2016-17 school year, and a tax levy of $50,110,911 to support that budget.
“The district’s strong enrollment growth was offset by increasing equalized property values and the state funding a greater share of the revenue limit, through the increase in equalization aid,” said Beth Sheridan, Director of Business Services. The district budgeted for zero enrollment growth, but enrollment grew by 109 students, according to the 3rd Friday count in September.
Equalized property values grew, which helped to offset the impact of student enrollment growth on property taxes. The district budgeted for 2.5% growth, and the actual growth rate was 3.0%, spreading the tax burden across a larger tax base. “The total amount that we are taxing remains the same as last year, but the mill rate (tax rate) will go down by $0.30 for taxpayers this year,” said Sheridan.
Understanding Revenue Limits
School districts operate under revenue limits set by the state, establishing a partnership between state and local funding sources. The revenue limit can be considered a “pie” with two pieces: general state aid and the local tax levy.
The maximum amount of revenue allowed to districts from these two sources is determined by the state’s revenue limit formula that considers enrollment over a period of three years and an allowable dollar amount per student. When one piece of the pie increases, the other piece decreases accordingly.
It’s important to know that an increase in state aid does not equate to a windfall to the school district. An increase in the state aid portion of the “revenue limit pie” means that less is required in the other portion of the equation, the local levy. These two factors balance each other out and the levy decreases if state aid increases.
Fiscal Responsibility to the Community
One of the District’s commitments to the community is to demonstrate fiscal responsibility by utilizing resources efficiently and effectively. The 2016-17 budget supports identified strategic initiatives, including:
- Certified staff compensation and FTE levels approved in May.
- Competitive employee benefits.
- 1:1 Chromebook initiative at OHS, Nature Hill Intermediate and Silver Lake Intermediate schools.
- Summer Academy professional development.
- Elementary math curriculum adoption and related teacher training.
- Expansion of pilot program for modernized learning spaces at all school sites.
- Continued expansion and support of Universal Design for Learning framework district-wide.
We are thankful for our supportive parents and community, who continue to provide the resources for us to Empower a Community of Learners and Leaders!
