School levy, facilities tackled at work session

The Staples-Motley School Board reviewed options for the tax levy and agreed to interview facility consulting firms at their work session Dec. 5 in Motley.

Tax levy

The board first reviewed three levy options at their Oct. 17 meeting. At that time the district was expected to end the 2015-16 fiscal year with a deficit. 

With the audit complete the district is now showing a small positive balance, so the administration wanted to update the board and developed a fourth option for them to consider. The 2016-17 fiscal year is also projected to end with a deficit.

All options involved underlevying, which is levying less than the maximum amount in the areas where they could levy without losing state dollars. It also means less money is coming to the school district for that area.

The preferred option in October increased the levy by 5.75 percent, slightly over half of the maximum levy possible with an increase of 11.77 percent.

The difference in the fourth option presented Dec. 5 was in the line item for long term facilities unequalized. This amount was increased from $209,735.39 proposed in the October option to $232,735.39. That would bring the increase in taxes to 7.11 percent. 

The board also reviewed the other underlevied areas of QComp (alternative teacher compensation) and OPEB (other post employment benefits).

QComp sets aside funds for staff development and special features like teacher mentors and professional learning groups. In both options it was underlevied by $20,000. 

Dave Hoemberg questioned the expense saying it was the third year of the program with little student improvement.

Superintendent Mary Klamm said it was too early to see definitive results because the first year of the program was organizational. 

“I think it’s well worth the investment,” said board chair Mary Freeman and noted that building principals have seen instructional improvements in the teachers. 

Roy DiGiovanni had questions about OPEB. He said the initial funding estimates were based on staff retiring at the earliest age possible. Some people don’t retire at that time and, he noted, that the possible retirement age has increased.

Freeman reminded the board that whatever OPEB funds are not levied are taken out of the general fund, when necessary. 

The increase in long term facilities unequalized was the final item in the levy discussion. 

“I think this is a good one that we don’t underlevy as much with our buildings in the shape they are in,” said Bruce Lund. 

Bryan Winkels agreed but said he understood trying to keep the levy flat and not have spikes. 

“It’s a fine line, taking care of our facilities, taking care of our taxpayers,” Winkels said. “It’s always a challenge.”

Lund referenced a report given by a consultant at the board’s Nov. 21 meeting that the overall tax burden in the Staples-Motley School District is currently below the state average and well below neighboring districts.

Chad Longbella noted that other than OPEB all of the other areas are new areas that school districts have been allowed to levy.

The consensus appeared to be to remain with the option with the 5.75 percent increase. The final decision is expected to be made at the board’s regular meeting Dec. 19, which includes the Truth in Taxation hearing. 

Facility study

Freeman began by reviewing the information from the recent enrollment projection study and other recent facility disussions. She suggested the option of hiring a consulting firm that could guide the district in “improving the learning environment for our students.”

At this point Supt. Klamm informed the board that her brother is a principal partner in Foster Jacobs & Johnson, Inc. This firm was recommended by NJPA (National Joint Powers Alliance) and gave a presentation at the Nov. 17 meeting about how the company can help the district use the demographics data as part of a facility study that would consider the educational space needed in the future.

Freeman noted that a consulting firm can help the district prioritize what maintenance issues need to be addressed immediately. It can redesign current space as well as potential additions and then give the board options.

Klamm said a consultant can also help the board put the financial pieces together, adding that right now school districts have more funding options.

Lund said he first questioned why a consultant was needed when, “We have LeRoy,” referring to LeRoy Peterson, buildings and grounds superintendent.

“Then I went to talk to LeRoy and he showed me why we need someone with more expertise,” Lund said, especially in the financing and bidding processes.

“We have three old buildings and they are getting older,” Peterson said, adding that consultants have experts on staff who deal with block buildings, with roofs, with additions.