Look out below

Medford school tax rate projected to drop by close to 10% this year

News Editor

Rising equalized values is leading to drops in the tax rate for Medford Area Public Schools property owners.

At Monday night’s school district annual meeting, the finance director Audra Brooks presented a budget calling for $34.3 million in spending with a local tax levy of $6,050,390. The levy is up $143,688 from last year, a 2.43% increase in actual levy dollars. However, thanks to a projected 12% increase in the equalized value for the district the tax rate is expected to drop from the current $6.07 per $1,000 of equalized value to a projected $5.52 per $1,000 of equalized value.

What this will mean is that the owner of a $150,000 home in the district paid about $911 in the school portion of their property taxes last year and will pay $828 in school taxes this year. This works out to be a 9.06% drop and is on top of the 25.4% drop that occurred in last year’s tax levy, that drop had been driven by the district paying off previous debt.

“We are the lowest in the area,” Brooks said, noting that Medford’s tax rate is well below that of surrounding districts as well as the state average of $8.67 per $1,000 of equalized value.

See SCHOOL TAX on page 4

$1,249.50 Amount of school taxes on a home with an equalized value of $150,000 in the Medford Area Public School District “Mill rates have dropped across the state and we are seeing that trend here,” Brooks said.

Brooks cautioned that the projected tax rate is based on the preliminary equalized values released by the state in mid-August. The state finalizes those numbers in October. The school board will set the final tax rate at the October meeting. At last year’s annual meeting the projected rate was $6.24 per $1,000 of equalized value but dropped to $6.07 per $1,000 of equalized value when the final levy was adopted.

According to Brooks, she applied about $400,000 in federal Elementary and Secondary School Emergency Relief (ESSER) funds to the budget. In the current state budget the legislature did not include additional funding for school districts and instead directed them to use the federal ESSER dollars to supplement their budgets.

Brooks said there is still concern about the fiscal cliff this is setting up for districts as they are being forced to use one-time federal grant money to cover ongoing operational expenses.

On the positive side, Brooks said that the district was able to add about $965,000 to its fund balance reserves at the end of the fiscal year on June 30. This brings the district’s reserves to $6,968,271 which is at 20.90%.

The fund balance is used throughout the year to assist with cash flow for the district and a strong fund balance reduces the need for short-term borrowing.

“We have a nice, healthy fund balance,” Brooks said, noting that at nearly 21% that is in her comfort level for the district’s finances giving them a cushion if something unexpected occurs.

Brooks also highlighted that the district has just $652,900 in outstanding debt. Following the failed referendum last spring, school board members approved borrowing $805,600 with an interest rate of $1.5% to do immediately needed projects. Unlike referendum debt which is added to the levy limit, this debt is repaid as part of district’s allowed levy. Brooks noted the budget presented at the meeting does not include levying any dollars toward referendum debt.

Later in the meeting, school district electors present voted unanimously to adopt the tax levy and mill rate with the understanding the board will finalize that action when the final state numbers are released in October.

Board wages

School board members will get a $25 raise per board meeting attended and a $15 raise for attending committee meetings they are assigned to be on.

Electors approved the increase as part of the annual meeting review of board wages. Previously, board members were paid as follows: $100 per board meeting for board president, $95 per board meeting for clerk, and $75 per board meeting for other members with committee meeting pay at $45 per meeting.

Given that it has been at least 10 years since the rate was last changed, Stetsonville resident Pat Sullivan made the motion to increase the wages to $125 for board president, $120 for clerk, $100 for other board members and $60 for committee meetings. Brian Hallgren seconded the motion.

During the annual meeting any school district resident may make a motion, participate in discussion and vote on an item.

Board member Don Everhard asked if there was data to compare to other neighbors. Board president Dave Fleegel said that they have not done any survey but that it varies around the state. He noted that in some bigger districts being on the board is more of a full time job compared to smaller districts.

“None of us are here for the paycheck,” Fleegel said, noting though that the positions take time. “It is something we volunteer to run for,” he said.

He noted that it is awkward to discuss raising their pay. Sullivan agreed, but noted that he made the motion not as superintendent but as a taxpayer in the school district.

Hallgren noted the district has been able to attract quality board members to run, but said improving compensation could attract someone to take time out of their schedule to serve.

Electors at the meeting approved the new wages on a voice vote with no opposed.

Electors at the annual meeting were also asked to approve the following routine resolutions. Electors: Approved establishing the line of credit for the 2022-2023 school year with AbbyBank at a rate of 4.25%. The short term borrowing is used for cash flow and to cover payroll and expenses between the time when the district receives tax settlements and when the state aid payments are made. The interest cost incurred for the borrowing is covered by the Rural Virtual Academy.

Approved giving the board the authority to purchase property necessary for school district purposes.

Approved authorizing lease of buildings for the Rural Virtual Academy in Medford and Mosinee.

Set the board member salaries at $100 per meeting for the president, $95 per meeting for the clerk, and $75 per meeting for other board members. All board members will be paid $45 per meeting for committees they are assigned to attend. This is unchanged over last year.

Set the date for the next annual meeting to be between May 15 and Oct. 31, 2023.

2021$828

2022