Because the district’s 18 non-homestead mills were subject to a Headlee Rollback for the 2016 tax levy, the Van Buren Public Schools is able to levy only 17.17822 mills and thus will lose more than $110,000.
That would be if the voters approved just the 18 mills which is expiring in December.
At the July 18 regular meeting of the school board, the board agreed to ask voters in the Nov. 8 general election for renewal of 18 mills plus an additional two mills for eight years.
That would be 20 mills, $20 for each $1,000 of taxable value.
This levy is for non-homestead property only. Homestead is considered a property owner’s home. Non-homestead is rental property, business property, and vacation homes.
The 20 mills approval would let the district levy the full 18 mills allowed and leave a “cushion” so the district could keep levying the 18 mills to cover any other rollbacks over the years. Board members discussed the term “cushion” and they didn’t like it because it is confusing and won’t use it in promoting the millage vote for the Nov. 8 election.
They also stressed they are only allowed to levy 18 mills even though they will have 20 mills approved.
Finance Director Shareen Barker explained with the inception of Proposal A in 1994, property taxes paid by Michigan homeowners were dramatically reduced and future increases were limited.
Property was classified into homestead and non-homestead.
Property that is not a homestead and not qualified agricultural property can be assessed up to an additional 18 mills non-homestead operating purposes. Van Buren School voters approved a renewal of the 18 mills non-homestead operating millage on Nov. 8, 2011, which expires with the December 2016 levy.
A non-homestead operating millage renewal must be passed by voters before June 30, 2017, Barker said.
She said the district would lose $9,091,374 without the 18 mills – 20% of the district’s revenue.
They decided to seek the 20-mill approval for eight years so it would come back during a Presidential election when more voters turn out. Vice president Martha Toth said it was during a Presidential election that voters approved construction of the high school.
“A lot of districts have this in place,” said Barker. “Gives us a little cushion … wiggle room that we wouldn’t have otherwise.”
Barker said the district has been levying 18 mills for the last 10 years but fell into the rollback this year.
“This is the first rollback we’ve had,” Toth said.
Barker said the district will receive $7,667 per student this school year. That is $2,045.87 from non-homestead taxes and $5,621.13 from the state.
“We can’t afford to lose $8 million,” Trustee Sherry Frazier said. “We’re trying for November and if it did not pass, go in the spring.”
In other business at the July 18 meeting, the board:
• Approved a Michigan High School Athletics Association resolution for a cooperative Ice Hockey Team with Huron High School in New Boston. The sport is currently not available at BHS. The agreement commences Oct. 31. Both high schools are Class A, with Huron having 886 students and Van Buren 1,747 students, according to the resolution. It will be self-funded, with a payment of $1,000 per player. The money is paid up-front to Huron. Huron will coach the team and provides the transportation to games from the Brownstown arena where they practice. There will be varsity letters. There is no JV team. Several BHS players are already playing at Huron and they are trying to get a big enough team to compete;
• Heard Trustee Frazier report that the attorney fees for this month are $50,900 and the total for attorney fees is $315,000, so far. She again stated she is against spending so much money on attorneys, which takes funds away from instruction. Later in the meeting she asked for a future report on the Savage teacher situation. “We want to get a resolution”; and
• Was reminded of upcoming meetings on Aug. 8 (regular) and Aug. 15 (work/study), with a special meeting possible on July 25 to approve a contract. Also, School Supt. Pete Kudlak has set a meeting for 7 p.m. Thursday, July 21, at the BHS Commons to get public input on what parents want in a new BHS principal.
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