Lyle school issue draws taxing questions

Published 12:00 am Friday, September 20, 2002

Questions about how much Lyle property taxes in the school district would increase during the proposed 25-year $11.1 million school construction bond have flooded school board members in and outside of their meetings.

The new construction would bring elementary classrooms up to state code, include new science rooms, a media center with Internet access and a gymnasium for Lyle Public School.

Ehlers and Associates, Inc., was hired by the district and has estimated the increase. But the estimated numbers by the bonding company cannot predict how property values will change, said Woody Vereide, Mower County auditor.

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The county itself does not estimate the cost of a proposed bond, Vereide said. The school hires a bonding company, such as Ehlers, to estimate the cost.

The county is made aware of the bond vote and that the school is holding a special election. The Lyle School Board approved a bond resolution Monday night and notified Mower and Freeborn counties.

Ehlers and Associates estimated the tax capacity rate to be at 65.82 percent. That rate could drop or could increase during the 25-year bond, but it predicted the rate would be closer to 60 percent.

Homestead owners in town are taxed on their property. Farmers are taxed on their homestead, property and other buildings on the premises. To figure out how much taxes will increase, homeowners have to look at the tax capacity rate. The rate is then applied to their individual property value. When paying property taxes, residents pay the school levy, plus other county levies. That money is then distributed to county programs and school districts, Vereide said.

The tax capacity rate -- once determined -- is the same for all property owners, but the dollar amount applied to each case varies.

"Until we know the total net tax capacity and plug the numbers, it's impossible to say exactly how much individual taxes will go up," Vereide said.

Cari Quam can be reached at 434-2235 or by e-mail at cari.quam@austindailyherald.com