Both the Salem Grade and High School Boards Monday night voted to hold Truth in Taxation hearings at their December meetings to clear the way for an increase in the property tax levy of over 5 percent.
Normally, tax caps would prevent that large of an increase, but not this year due to the high cost of inflation. That is compounded by the big increase in home prices and the amount of new construction. But the increase is not expected to raise the school portion of the property tax for those with unchanged assessments.
The Salem High School Board is proposing a 6.8-percent levy increase that would bring the district an additional $250,000 in revenue this year. Superintendent Dr. Brad Detering says under tax caps if they limit their increase to 4.99-percent, they are looking at a loss of revenue not only this year but in future years.
“If we don’t we’re looking at a loss of over $60,000 every year into perpetuity so it becomes a large figure and when you start looking at it’s tough to go any other than that. We understand there are difficulties with inflationary costs for all of our taxpayers. That’s why we want to have thoughtful dialog and take a look at the math behind it and come to a fair and equitable solution for everyone.”
The Salem Grade School Board will seek a 5.8-percent property tax levy increase in their truth in taxation hearing. That will bring the district $145,000 more in the coming year. Superintendent Dr. Leslie Foppe explained what the district would lose if they limited the increase to stay below the truth in taxation level.
“If we decide to go with the 4.99, we would lose $20,500. In the next year that would equal $41,000. The third year it would equal $85,000. Up to the year 2030, that would be $204,000 that the district didn’t capture that would never be captured again.”
Foppe says the extra funding could be used to add more paraprofessionals to assist students and staff.
The Salem Grade School Truth in Taxation hearing will be held at six pm at the start of their next school board meeting on December 13th.
The Salem Community High School Truth in Taxation hearing will be at seven pm at the start of their next regular meeting on December 19th.
In agreeing to hold the Truth in Taxation Hearing, members of both boards noted they could still lower the levies, but if they didn’t schedule a Truth in Taxation Hearing it would not be possible to approve a levy above 4.99-percent.
