Cape school board passes on tax increase

Public outcry over a proposed 6-cent increase in the Cape Girardeau School District tax levy persuaded school board members Monday to leave it at $3.99 per $100 assessed valuation.

"People contacted board members and expressed themselves," superintendent Mark Bowles said at the board meeting. "Most of the feedback was nobody wants to see increased taxes."

But board members stressed that won't be an option next year unless property and real estate assessments rise and the district receives more local taxes, its primary means of support.

Under state law, the district could increase the tax levy by as much as 15 cents per $100 assessed valuation without voter approval in order to match last year's revenue. Bowles said the board weighed the district's financial needs against public sentiment.

No community members addressed the board during the tax rate hearing before the regular meeting.

The district's finances sustained a major setback this year when the city's assessed valuation didn't achieve the 3 percent growth school administrators used for budgeting. The valuation actually gained about a tenth of a percent. As a result, the district will receive $510,000 less in tax revenue than originally projected.

'Only part of the puzzle'

Earlier this month, Bowles said he recommended increasing the levy from $3.99 to $4.05 per $100 assessed valuation, which would have resulted in an additional $256,000 for the district.

Numerous complaints from community members to board members led Bowles and the school board to reconsider the proposal. Instead, they'll fall back on the district's $2.7 million in reserve funds if needed to get through the year.

"My recommendation is still $4.05, but that's only part of the puzzle. We still have to take into consideration how the community feels," Bowles said.

Although the 6-cent proposal would have increased taxes on a $100,000 home by only $11.40, area taxpayers made it clear it was an added cost they weren't willing to tolerate after the 58-cent per $100 assessed valuation tax increase voters narrowly passed last year.

The tax levy did undergo a few changes. The board approved a 9-cent increase in the debt service levy and a 9-cent reduction in the operating levy so that the overall tax levy would remain at $3.99. According to Bowles, the debt service increase was necessary in order to pay off bonds issued in 2000.

During the meeting, he pointed out that in the last few years, the district has voluntarily rolled back the tax levy so taxpayers wouldn't see any increases, losing out on the potential for several hundred thousand dollars per year.

Board president Dr. Bob Fox said voluntary reductions may not be an option next year, especially after this year's financial problems.

"We plan to spend this year educating people about the tax rate," Fox said. "If there's truly a need, I think this community will support a tax increase. But like any tax base, they need to be shown why it's necessary."

cchitwood@semissourian.com

335-6611, extension 128