Board approves levy for retiree health care

Staff

Published Tuesday, August 19, 2008

The 2009 levy paid by taxpayers to the school district could go up again, but details have yet to be finalized.

The Albert Lea School Board Monday unanimously approved a bond levy of $6.1 million to cover retiree health insurance premiums. Though the levy was approved, it is not set in stone.

The approval was to get the bond levy into preliminary tax levy calculations released Sept. 8 for taxes payable in 2009, according to Director of Finance and Operations Larry Kellogg, but the school board can still decide if it wants to keep it there.

The final decision has to be made by the end of November in time for the truth in taxation meeting Dec. 2, he said. If the school board didn’t take action soon it would have to wait another year.

“Obviously we’re going to have to have a lot more discussion on this,” said school board Vice Chairman Bill Villarreal.

The contracts of several bargaining units for staff at the district include provisions for the district to pay partial health insurance premiums after a staff member retires. Kellogg said the district contributes the premium amount a staff member retires with through his retirement.

Because that can end up totaling a lot of money, the Minnesota Legislature last session allowed districts to issue bonds to cover future health care obligations.

The district approved Monday to sell bonds for $6.1 million to cover most of the obligation. According to an actuarial study, the district could see a liability of $6.65 million. The Legislature approved school districts to levy up to the liability amount.

“It’s an important decision the board is making, and they don’t want to make it lightly,” Kellogg said, adding there will be much discussion between now and November before a final decision is made.

School board Chairman Ken Petersen said the district’s budget advisory committee — made up of taxpaying citizens — recommended the levy amount.

“Balancing our budget is always a challenge,” he said.

A repayment schedule was not approved yet. Three options were presented to the school board. The first pays only the interest on the bond until existing obligations — to pay for the building of a new high school — are fully retired, then payments would be made on the new bond. It is a 12-year repayment plan wrapped around existing debt that would be paid off three years after payments on the principal start. This would cost the average taxpayer — based on a $100,000 home — an extra $22 on 2009 taxes.

The second repayment schedule is a 10-year repayment schedule paying principal and interest, increasing the obligation to tax payers a little more in early years. The average taxpayer would pay an extra $49 on 2009 taxes.

The third plan would make payments on the full $6.1 million over 20 years until the bond is paid off. It would cost the average taxpayer an additional $32 in 2009.

The district could take up to 30 years to repay the bond.

In other business, the school board:

Presented Peggy Bennett with a plaque honoring her ambition and work in using SMART Boards over the past two years.

Unanimously approved a district improvement goal relating to student achievement.

The goal states, “In 2008-2009, a higher percentage of students averaged across grades two through 10 will meet or exceed their reading and/or math targets as measured by fall-to-spring summary results from MAP (Measures of Academic Progress) tests than they did in the 2007-2008 school year.”

The goal’s focus on MAP data aims to lead to higher proficiency on the Minnesota Comprehensive Assessment Series II tests overall.

Approved Type 3 Vehicle Driver Requirements for school bus and van drivers. This includes inspection and training procedures and instructions. The Minnesota State Patrol came out with three certification and inspection sheets. The new law for requirements becomes effective Sept. 1.

Approved food service bakery and dairy bids for the 2008-09 school year. Pan-O-Gold was approved for bakery and Sampson Dairy Foods was approved for dairy services.

Approved individual contracts for the 2008-09 school year. The contracts were for the Area Learning Center student monitor/assistant and the elementary scheduling clerk.

Approved four nonresident agreements. All four students requested transfers to neighboring school districts.

Approved the revised policy for development, adoption and implementation of policies.

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