As Austin property owners in possession of their 2001 proposed tax statements already know, the Austin School Board expects a tax levy increase this year of 5.

Tuesday, December 05, 2000

As Austin property owners in possession of their 2001 proposed tax statements already know, the Austin School Board expects a tax levy increase this year of 5.5 percent, or a $4.5 million levy mandated by state statute.

During Monday night’s Truth in Taxation meeting, Darwin Viker, a certified public accountant with Larson Allen Weishair & Co., presented the proposed budget and levy specifics to schools Superintendent James Hess and the board.

The proposed preliminary budget for 2001 includes $38.35 million in revenues and $38.42 million in expenditures, making the fund balance $13.5 million.

Viker explained that $200,000 will be transferred from the general fund to the community service fund, putting both funds in the black.

Expenditures in the debt service fund will not be included in the levy because in past years the school district has been able to make its principal and interest payments.

One major expenditure included in the budget has been the efforts required to bring the high school annex smokestack into safety compliance. This effort cost the district $450,000 to $500,000 from the general reserve subfund alone.

Levy adjustments are based upon a state formula, as board member and board Vice Chairwoman Amy Baskin pointed out.

Viker explained that the general rate of taxation – 0.3241 for 2001 – changes because of the state legislators. This rate must be multiplied by the net tax capacity ($12.94 million), which is the value of property in the district.

The formula allowance, $3,964 for 2001, is multiplied by student counts to arrive at total revenue from state aid.

Health and safety (such as the smokestack) and re-employment insurance costs are the major local fluctuating expenditures.

Health insurance and benefit expenses are down because they originally were set up for retired employees in a certain window of time – 1993. As individuals turn 65, their costs drop from the budget.

If an individual’s property market value remained relatively the same, they should expect to pay an additional 5.5 percent in taxes in the 2000-2001 fiscal year. Changes in market value or property improvements will affect the rate.

The final levy will be adopted at 4:30 p.m. Monday in the City Council Chambers.