HCS approves increase in tax asking of $205,889

    HARLAN – The Harlan Community Schools has approved a 2021-22 budget that calls for a steady levy but an increase in tax asking for expenses associated with its management fund and from property valuation increases.
    The HCS Board of Education Tuesday, March 23 unanimously approved the proposed budget, with a tax asking increase of $205,889.
    While the overall school levy will remain the same at $12.30 per $1,000 taxable valuation, the district’s general fund levy will decrease by 24 cents from $10.69 to $10.45 per $1,000 valuation.  The district’s management fund levy will increase from 61 cents to 85 cents per $1,000 taxable valuation.
    The district’s Physical Plant and Equipment Levy, which funds school maintenance and improvements, remains steady at $1 per $1,000 taxable valuation.
    HCS Director of Finance Brian Gubbels said of the $205,889 in increased tax revenues, $147,500 is an increase in the management levy with the remaining due to property valuation increases.
    Total taxes levied on property increases to $7,002,444 next year from the current re-estimated $6,796,555.
    “We increased the management levy to strengthen the management fund balance to prepare for the potential of offering early retirement packages in the future,” said Gubbels.  
    “Our property insurance costs have also taken an increase and this allows us to prepare for that.”
    Early retirement incentives save the district substantial funds annually if it replaces retiring teachers with those who may not have comparable salaries and benefits.
    Taxable property valuations for the present year are $559,003,913, and are anticipated to be at $575,178,817 next year, an increase of $16,174,904 – the driving force for additional tax dollars.
    Other highlights of the approved budget include:
    •  The cash reserve levy will be $840,000, which is the same as the prior year.  This is used to fund the special education deficit and other SBRC requests, as well as to keep the district cash flow in a solid position.
    •   The budget guarantee will be $77,397.  The budget guarantee helps with the funding decrease that comes from loss of enrollment.
    •  All bond payments will be paid with transfers from the district’s sales tax (SAVE penny) proceeds.  The district’s general obligation bond will be paid off in fiscal year 2023, and the revenue bond will be paid off in fiscal year 2029.
    Total expenditures in the current year are re-estimated at $21,302,508 and are proposed at $21,530,489 next year.  
    The ending fund balance is estimated to be $5,001,937, higher than the current year’s $4,705,934.