The Salem Community High School Board settled on a 4.99 percent levy increase after a group of several dozen residents showed up at the meeting wanting no increase in the tax levy at all. The board had originally held a Truth in Taxation Hearing to seek a 6.75 percent levy increase.
Those in attendance voiced concerns about the $ 10 million the district currently had in reserves and the lack of discussion of cuts instead of raising the tax levy. Several said the property tax increases were not sustainable and would continue to force businesses and individuals to leave the area. Gene Timm, who owns 1100 acres of farmland, said the jump in assessments for farmland is even higher than the 10-percent multiplier being imposed on other property. Roy Landers, who owns the Iron Saddle, said his property tax bill is so high he is no longer considering covering his arena used for rodeos.
Superintendent Dr. Brad Detering said the rising assessments would likely drive down the tax rate from $2.00 to $1.90 so the impact would not be as great as many were fearing. He also noted the $10 million in reserves is being spent on completing building improvements without having to issue new bonds.
Board member Shawn Morris initially moved and Mike McKinzie seconded a motion for a 6.5-percent levy increase, but when meeting resistance from other board members agreed to amend their motion to call for the 4.99 percent increase. Two board members, Sarah Meador and Joe Telford, had sought to honor the group’s request for a zero percent increase and voted no.
Detering said dropping the levy increase to 4.99 percent would cost the district $61,000 next year but close to $700,000 over the next ten years since there was now no way to recapture the growth. He said a zero percent increase would have been devastating.
“The zero percent increase, or to stay flat, would have been somewhere in the neighborhood of $265,000. The problem is, it isn’t one year. It’s every year after that. Very quickly, that actually becomes unsustainable as well. The board is committed to spending down some of the fund balances through cash-flowing projects. Perhaps some of the projects will slow down just a little bit as you garner some public input that maybe we need to relook at those. That is something that the building committee will take all of the information that came out tonight and will use that for a plan going forward.”
The board took no action on signing off on a 12-year extension for Salem’s Westside tax increment financing district and will vote next month.
The board approved early graduation after the first semester for 19 students if they meet all the requirements.
in personnel news, the board accepted the resignation of Kim Morris as special education secretary. The board promoted Nikki Niepoetter to main office secretary, filled her former role as attendance secretary with Mallory Knaak and hired Linny Meador as the new special education teacher.
Part of the crowd of unhappy residents over a proposed increase in the tax levy. Photo by Bruce Kropp.
