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School debt payments end in 2022

Tax rate could drop before referendum

By Bert Lehman


If voters don’t pass a school referendum before 2022, the Clintonville School District could find it difficult to get one passed later.

The district’s tax rate is projected to drop without a referendum.

The referendum seeks funding for building a new middle school and other projects,

Michele Wiberg, chief sales and marketing officer for PMA Securities, told the Clintonville School Board on July 6, that once the district’s current debt is paid off, the tax rate could potentially decrease by several dollars.

The district will pay off its current outstanding debt by the end of 2022.

If that happens, Wiberg said it would be more difficult to get a school referendum passed after 2022.

This would be because a referendum going to the voters at that time would mean an increase in the tax rate of several dollars.

“This is going to be a whole different question two years from now,” Wiberg said.

She said that is why it is “timely” now to try to get the referendum passed.

20 years since voters passed referendum

“The district hasn’t come to the taxpayers really all that often, and it’s been 20 years since there’s actually been a successful referendum in Clintonville,” Wilberg said.

A referendum for $2.5 million was passed by taxpayers in 1996.

The funds from this referendum were used to make ADA improvements in the district, as well as district-wide maintenance projects.

Another referendum was passed in 2000 for the construction of Clintonville High School. This referendum was for $22.9 million.

A second referendum, this one to exceed the revenue limit, was also passed in 2000 for $650,000, with the funds being used for operating and maintenance costs related to new facilities.

The last three school referendums that went to voters were defeated. The first defeat was in 2007, when voters rejected a $10.7 million referendum for building improvements, including HVAC upgrades and maintenance projects.

That same year, voters rejected a $2.9 million referendum to exceed the revenue limit, in which the funds would have been designated to maintain instructional services, co-curricular opportunities and investment in district facilities and technology.

The last referendum that failed was in 2017, when voters rejected a $24.9 million referendum to build a new elementary school.

Tax rate trends

Wiberg also shared information about the 10-year trend for the Clintonville School District property tax rate.

In 2011, the tax rate was $13.17 per $1,000 of equalized value, and it dropped to $11.32 in 2012.

Since 2012, the mill rate has remained stable, and dropped each year from 2015 through 2020. The current mill rate is $10.75.

Because the Clintonville School District hasn’t had a successful referendum since 2000, Wiberg said the district doesn’t have a lot of outstanding debt.

After the district makes its 2020 payments on debt, the remaining debt balance will be just under $2.3 million, which equates to 3% of the district’s debt capacity.

She added that the district has prepaid a portion of its outstanding debt over the past several years. By prepaying some of its debt, the district has reduced its interest cost on that debt by $35,445.

She said the proposed base plan of a $37 million referendum would equate a $45 annual increase in property taxes per $100,000 of fair market value. This equates to $3.75 per month.

If the referendum amount were to be reduced to $35 million, it would equate to a $30 annual increase, or $2.50 per month. A $33 million referendum would equate to a $15 annual increase, or $1.25 per month. A $31 million referendum would see no increase in the tax rate.

Potential dates for referendum

The earliest potential date the district could ask a referendum question of the voters is Nov. 3, and the question has to be set by Aug. 25.

School board member Mark Zachow asked if the referendum could be pushed to April 2021, and still not have the current debt paid off, so it would appear that passing the proposed referendum would leave the tax rate fairly even.

Wiberg said the April 2021 election would be the final opportunity for the district to get approval for the proposed referendum before the current debt is paid off and the tax rate drops.

School board member Ben Huber said in 2016 40% of district residents said they would not vote in favor of any form of a school referendum, and that current survey results indicate there are still 40% who will not support a school referendum under any condition.

“For those people, I think it’s almost a lost cause. It’s those 13-15% that are undecided that you really have to reach,” Huber said.

Tough sale during pandemic

Huber said if the school district decides to include the referendum question on the Nov. 3 ballot, it may be a “tough sell” to get district residents to vote in favor of the referendum if students are not attending school in person at that time due to COVID-19.

Based on comments provided by survey participants, school board member Kris Strauman said she thinks there are a lot of questions that need to be answered for district residents.

“They’re very valid questions,” Strauman said. “The COVID thing is real. We got to talk about it and we have to present things to people.”

From the beginning Strauman said one of the keys to a referendum passing is that it can not increase the tax rate for taxpayers.

Board members were told the amount requested in the referendum can be reduced to where there would be no increase in property taxes for residents in the district. How the amount of the referendum is determined will depend on the priorities of the district and its residents.

Cost of a gym

Huber said if the amount of the referendum is cut by $6 million, large items would have to be cut from the plan. He cited eliminating a gym at a proposed new middle school as an example.

Superintendent David Dyb said he has been with the district for only three years, but he knows the district has a trend of not raising taxes. He then asked if district residents are willing to give up a cup of coffee a month.

“That’s what it’s down to,” Dyb said. “If not, we have to give something big up. What are you willing to give up? And is a cup of coffee worth a $6 million gym.”

Dyb acknowledged that the COVID-19 pandemic is an unknown in the referendum process.
He said it is important to inform residents as to how approving a referendum would impact the school district.

“How is it going to improve academics? How is it going to enhance or maintain opportunities for our children? That’s the story we have to tell,” Dyb said.

“We need to maybe work on educating our older people, you know, the ones who are worried about this. To show them exactly why they should want to invest in this,” said Clintonville School Board President Lori Poppe.

The Clintonville School Board will continue to discuss how to move forward with getting a referendum approved by taxpayers.

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