Proposed levy represents drop, long-term savings

     A fiscal year 2021 property tax levy rate of $14.21976 per $1,000 of valuation was recommended by Superintendent Brian Jaeger and business manager Marcy Gillmore during a work session of the Monticello School Board March 11.

     The rate is subject to a public hearing March 23 at 6 p.m. in the Administrative Board Room, and then to board approval at the subsequent regular board meeting the same evening.

     If approved, it would represent a drop from the FY 2020 rate of $14.25219. The ’20 rate was a significant jump from the 2019 rate of $12.288.21, largely because of the bond issue passed by district voters for construction of the new middle school.

     The 2021 rate, if approved, would include an Instructional Support Levy rate of $1.09381, a PPEL levy of $0.49871, built-in debt service of $3.51645, and an income surtax rate of 1 percent.

     There was no funding levied for the management fund. As a result, the district had the opportunity to levy an additional $375,000, which will produce a savings of $140,625 on bond interest, allowing the district to pay off the bonds for the middle school earlier than expected.

     “We’ll tax for it this year,” Gillmore said of the additional levy, “and it still lowers our tax rate a little bit.

     “(The levy) goes into an escrow account until 2027. By doing this, we can save $140,625 on bond interest alone. So in the long run we’re really saving the taxpayers money.”

     Jaeger said the 2021 rate is also lower than the maximum allowed after the bond issue, $15.03. It ranks near the middle of rates for the 22 Grant Wood Area Education Agency schools.

     The tax levy rate was the only item on the work session agenda. Following that session, the board went into closed session to discuss bargaining and negotiations.