By Jennifer Eisenbart
Editor
The Burlington Area School District got finalized numbers Jan. 24 for the potential property tax impact of a trio of referendum questions that are slated go to voters April 4.
District financial advisor Robert W. Baird and Co. calculated the mill rate numbers. The new set of numbers are strictly what will be added to a tax bill, and do not take into account the approximate $1.12 per $1,000 of property value that will drop off in 2019.
The added costs to the mill rate, if the referendum questions are approved:
- Question 1: A new middle school along with other infrastructure repairs and upgrades at a cost of $68.3 million would have an impact of $1.23 per $1,000 of property value over the life of the loan.
- Question 2: Additional athletic space at the high school at a cost of $11.7 million would have an impact of 39 cents per $1,000 of property value.
- Question 3: A new performing arts center at the high school at a cost of $14.4 million cost would have an impact of 47 cents per $1,000 of property value.
The information the district provides breaks the numbers down for each question, based on properties with values of $100,000, $200,000 and $300,000 (see sidebar).
The numbers
According to Zillow.com, the median home value for the 53105 zip code is $188,700.
In Spring Prairie, the median home value is $264,100, and in Lyons the median home value is $209,200, according to Zillow.
Those numbers help put the costs into perspective, though the actual impact will depend on each family’s property value.
The numbers that School Board Member Phil Ketterhagen provided last week and again Monday were based on the value of his own property in the Town of Burlington – $480,000.
Using that number, Ketterhagen said, his property tax would go up $529 a year if the first question passed, and a total of $1,128 a year if all three questions passed.
The original numbers Baird provided at the end of 2016 allowed for a drop of $1.12 – money coming off the tax levy from referendum-approved debt, money used to build the new Burlington High School and Winkler School.
“What I’m trying to do is counteract the perception that we’re only increasing taxes a $1.23 (per $1,000),” said Ketterhagen.
However, Smet said the current numbers are on top of the current mill rate – $10.96.
Smet said that he knows “school referendums are always a challenge.” The reason? “A minority of residents have children in the schools,” he said.
If you add in the fact the BASD portion of one person’s tax bill is the largest part, Smet said he’s aware the district could be facing an uphill battle.
And yet, BASD isn’t the only district in a bind. Many area school districts are pursuing referendums of various sizes to address infrastructure needs. Burlington’s just happens to be an amount that is almost double its annual operating budget due to scope of the projects.
Because of state aid not keeping up with the cost of inflation, Smet said, the district just has not been able to save enough to do more than keep up with immediate maintenance needs.
The district has balanced its budget through a combination of careful planning and some use of the fund balance, and has not gone to referendum for operating costs – like some schools in the state have.
Looking to the future
In addition to the $1.12 from the previous referendum debt dropping off the mill rate in 2019, the City of Burlington will close tax incremental financing district No. 3 this year. The estimated value of $159 million of the TIF will be reflected in 2018 equalized valuation afterwards.
That will combine to lower the mill rate – both by spreading taxes out over a larger tax base, and by lowering the mill rate established by the tax levy each year.
Smet said, in addition to needing to repair of replace the aging buildings, this is also the end of a buildings plan that started with the new high school and Winkler School in 2000.
“We completed one 20-year plan,” Smet explained. “We’re starting our next 20-year plan.”
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