NRHEG residents to vote on levy

District seeking $450 per pupil

By Jason Schoonover | Albert Lea Tribune

Published Saturday, September 19, 2009

NEW RICHLAND — New Richland-Hartland-Ellendale-Geneva school officials are preparing for citizens to vote on a tax levy to the help the school face increasing operating costs as their state payments remain the same.

“If it goes through, we do just what we said we would do: maintain our programs, build our fund balance back up to what our financial advisers recommend it should be. If it doesn’t go through, we have to take a hard look at our budget in the coming year,” said Superintendent Kevin Wellen.

The public voted on the referendum along with the 2008 elections, but it did not pass.

“The voters said no. The economy changed in the middle of the election for everybody. We didn’t have the sense of urgency, and I think our voters didn’t have the sense of urgency,” Wellen said.

However, the district did not receive any additional government funding to meet their operating costs this year.

The amount of money received from the state government lowered, and the federal government made up the cost through the federal stimulus package.

“Just because we don’t get any more revenue, doesn’t mean the cost of doing business doesn’t go up,” Wellen said. “We still have heating. We still have facilities to maintain.”

The district planned and was able to adjust for the zero increase for the 2009-10 school year. However, Wellen said the district doesn’t anticipate any additional funding for the 2010-11 school year.

The revenue for the potential levy would start coming during the next tax year.

While the school essentially received the same amount of funding, the state government frequently defers payment to the next fiscal year. Typically 10 percent is deferred, but Wellen said 27 percent of the state funds were deferred this year, which he said is close to $1.5 million.

The potential levy would last 10 years, and Wellen said the board is asking for $450 per pupil, which Wellen said will generate about $460,000 a year. Wellen said the state average is about $700 per pupil. If the district received additional funding from the state, Wellen said they could under levy.

“A miracle could happen with the state. We could get more funding. I don’t see that as a reality,” said Wellen.

The tax increase would be about $94 a year on a $100,000 home – about $8 a month, Wellen said. A $50,000 home would pay half that and a $200,000 home would pay double, he added.

In Minnesota, 57 school districts are asking for voter levies. Ashby School District is asking for $1,400 per pupil.

An operating levy doesn’t apply to agricultural land; it applies to the farmstead, Wellen said. The tax also does not apply to seasonal recreational land like a cabin.

“The board is not saying, ‘Do this or else,’ because we always look at our budget. If it passes, we’ll look at our budget. If there are opportunities to save money, we take them. If we get into a budget where we start to get tight on things, the decisions become harder,” Wellen said.

NRHEG School District hasn’t borrowed money like some school districts; the district is operating on the money they had in the bank. While it’s positive they don’t have to borrow money, Wellen said they’re losing revenue from the interest on that money.

When the area schools consolidated to form the NRHEG School District, the taxes remained under the old district system, meaning the different towns paid the taxes on their own school buildings, Wellen said. For example, Geneva residents have been paying the tax on the Geneva school building, even though it’s no longer a school. 

The tax for the former New Richland-Hartland district is scheduled to end this year, and many of the other district taxes are scheduled to end soon, too. The taxes on the Ellendale building will end in about five years.

Citizens will vote on Election Day: Nov. 3. Because there are no other elections in New Richland this year, the school will have to operate the vote.

At the meeting Wednesday, the board discussed how to operate the vote. Wellen suggested a hand tabulation rather than paying for a machine count. The board will determine whether to consolidate the voting place at the Monday meeting.

The two polling places will likely be in the two schools. During a typical election, there are 16 polling places, so Wellen said they’d have to get the word out about where the polling places are.

At the regular board meeting Monday, the board could approve an informative flier that will publicize facts about voting locations and the potential levy.

The district will hold informational sessions at the two schools. That will feature some tours of changes to the school buildings and then information about the referendum. These sessions will likely be held in October.

---

WOULD YOU LIKE TO SHARE THIS STORY?

---