Ask amount comes down after failure in spring
By Dave Fidlin
Correspondent
The Waterford Graded School District is going back to voters and seeking the authority to exceed the state’s tax levy caps in another attempt at an operating referendum question.
At a special School Board meeting held Aug. 22, WGSD officials unanimously approved going back to referendum with a non-recurring $3 million request that would span four years.
In April, WGSD tried unsuccessfully to obtain voter approval to exceed the state levy caps in a $4 million non-recurring referendum question, with the same four-year timeframe in place.
As a result of the failed referendum, WGSD officials got out their scalpels and made several cuts to the expense side of the financial ledger.
Superintendent Tony Spence outlined some of the trims at the recent board meeting to cover an anticipated $2.4 million deficit.
Budget cuts included staff reductions, employee benefit changes and amendments to insurance coverage. To boost revenue, the district has increased user fees for facility rentals and extracurricular activities.
“We were able to be as pennywise as we could be in that window, but even with all of our savings, there’s still a deficit that we have not covered,” Spence said.
The district has been tapping into reserve funds typically cordoned off within its fund balance, Spence reported.
“There’s a lot that was done to get us to this point, and there’s still potentially more to do,” he said.
The total fund balance in the 2024-2025 school year is expected to encompass 17.6% of the broader budget. It could go down to 12.5% next year if additional revenue is not funneled into the budget. Board policy states the fund balance should be at 25% of the total budget.
Spence and the board hashed over several funding scenarios for a new four-year non-recurring operating referendum question. Figures of $2.5 million, $3 million and $3.5 million were all on the table at the recent board meeting.
Ultimately, the board opted for a middle-of-the-road approach with the $3 million annual option.
While there are a number of variables in play, Spence also did give a rough estimate of the tax impact of a $3 million annual referendum, if it is approved by a majority of voters.
WGSD’s mill rate would increase about 25 cents, or $25 per $100,000 of equalized valuation.
Multiplied out further, the owner of a home valued at $300,000 – which is more in line with local figures – could pay an additional $75 on upcoming tax bills if the referendum passes.
Spence said there are a number of caveats to the figure, and the numbers could be adjusted further as additional information – including home value increases – come into sharper focus.
“That’s the anticipated amount, but there are always various factors,” Spence said. “We did include the anticipated increase home values, on average.”
He added, “These are always an estimated amount, but I feel confident.”
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