DEXTER SCHOOLS INCREASE TAX LEVY

DEXTER -- For the first time in four years, taxpayers in the Dexter R-11 School District will see a slight increase in the school tax levy.

Members of the Dexter Board of Education approved Tuesday evening a 7-cent increase in the tax levy in an effort to pay off bonds and to get full funding under the state school foundation formula.

The tax levy was the subject of a public hearing held Tuesday evening prior to the regular board meeting. However, no one except board members, school administrators and the news media attended the 6:45 p.m. meeting.

The levy that was passed calls for an increase in the general fund of 1 cent, to $1.31; for the Special Revenue Fund levy to remain the same at $1.44; and for the Debt Service Fund to increase 6 cents to 57 cents. The total for the levy for 1999-2000 is $3.32.

"We were able to increase the levy in the General Fund 1 cent due to the passage of Amendment 2 last year, which allowed boards of education to levy $2.75 combined in the General and Special Revenue Funds," said school superintendent Ray Dowdy. "Doing this allows us to get full funding under the school foundation formula and does away with the calculated levy we were forced to use last year."

Dowdy explained to the board that the 6-cent increase in the Debt Service Fund was necessary to provide the district with the funds to pay off bonds on some capital improvements.

"This is necessary in order for us to pay off the bonds that were issued in 1989 and 1990 when we built Central and the additions the Southwest and High School," he said.

Dowdy explained that the new levy would mean that a person in the district with a house of a market value of $90,000 would pay an additional $21 in school taxes.

He also noted that the increase is still significantly below the level approved by voters in the bond issue passed in 1989. That bond issue approved a tax levy for debt service of 85 cents.

In other financial business, the board approved moving the district's banking business.

Three bids were received from local banks -- Union Planters, Mercantile, and First National Bank. After looking at all the particulars -- including investment, interest rates and service charges -- the board voted to move the district's banking business to First National Bank.