A letter from Superintendent Jerry Archer in regards to the Tax Rate Hearing August 12, 2003.

TAX  RATE  HEARING

The Avenue City R-IX Board of Education will set the tax rates for the 2003-04 school year at their regular board meeting on August 12^th at 8:00 p.m. at the school library.

Below is some information we will provide at the hearing to explain the proposed tax rates:

Assessed Valuation of Avenue City R-IX School District

Property Tax Rate per $ 100 and estimated revenue:

Revenue for 2002-03 ($ 9,855,010 divided by 100 times $ 4.3059 times 96%) =$407,373.

Projected revenue for 2003-04 ($ 11,238,960 divided by 100 times $ 4.2384 times 96%) =  $457,298.

*  These figures reflect taking the full Prop C waiver which was 16 cents less during the 2002-03 school year. 

These tax rates are subject to change until September 1, 2003, pending changes from the board of arbitration.

You will notice that we had an unusually large increase in assessed valuation for the 2003-04 school year.  The main reason for this is that Andrew County assessment ratio was only 31.67% for last year and by state law it should have been 33.33%.  The assessor was then required to increase the assessed valuation accordingly.  You will notice as the assessed valuation increase the tax levy decreases.  As you may know, even though a full waiver of Prop C was passed, the Board has not taken the full amount (last year 16 cents was not taken to keep the levy at a constant figure).  This year I am proposing to the Board that we take the full waiver or add the 16 cents to the levy.  You will notice on the figures above with the increased assessed valuation the levy will be less than last year even with adding the 16 cents to the levy.  If the Board decides not to take the full waiver (the 16 cents) the proposed levy for 2003-04 will be $4.0784 instead of $4.2384.  The main reason why I am proposing we take the full waiver or add the 16 cents is because of the state budget reductions we have received in the last two years.  With this increase in the levy amount, we are anticipating a negative budget even though we are freezing salaries and holding expenditures to a minimum.  You may also know that when a district increases their tax levy the state monies also increase.  For our district we receive about $2 in state monies for every $1 we receive in local revenue when we increase our levy. 

If you have any questions, please call me at (816)662-2305 or (660)535-6369 or attend the tax rate hearing on August 12^th at 8:00 p.m. at the school library.

Jerry Archer, Superintendent

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