Nell Holcomb officials talk about effect of tax waiver

About 30 people attended the Nell Holcomb School District's second town-hall meeting Monday, where residents could ask questions about a proposed sales tax rollback waiver.

The measure -- Proposition 2 -- will be on the April 7 ballot. If approved, it would eliminate the mandated Proposition C rollback.

Enacted in 1982, Proposition C is a one-cent, statewide sales tax for education with a corresponding property tax reduction for school districts. Revenue generated by Proposition C was intended to roll back, or reduce, property taxes by an amount equal to one-half the amount each school district receives via the sales tax revenue at the state level.

The amount of rollback on average for the past 10 years at Nell Holcomb has been about 10 percent of the total tax, which equals $120,000 to $150,000, depending on the year, officials said.

With the passage of Proposition 2, the district's tax rate would be raised to $3.60 per $100 of assessed valuation. The current rate is $3.2581.

For the owner of a $150,000 home, the 35-cent levy increase per $100 of assessed valuation would equate to an annual increase of $99.75 in residential property taxes, according to the district.

A parent at the meeting questioned whether the $3.60 tax rate would be enough for the district in the coming years or a temporary fix.

Superintendent Darryl Pannier said along with the tax-rate increase, the district will continue making small cuts when possible and will keep looking at whether someone who retires needs to be replaced.

"What we're looking at here is not necessarily a Band-Aid," Pannier said. "I think we're looking at a fix that will last us for a while."

During the past several years, the district has seen a 15 percent decrease in enrollment in its kindergarten through eighth-grade population. The school had about 325 students in the fall of 2006, compared to 275 students last fall.

Officials estimate the loss of 50 students has cost the district $500,000 in revenue during the past several years because the state provides a set amount per student.

With decreases in the amount of state and federal funding and the decrease in enrollment, Pannier said the district no longer can afford to roll the money back to residents.

Since the proposition was enacted in 1982, more than 400 districts in Missouri waived the rollback, allowing the districts to use money generated by the sales tax in addition to the tax levy funds based on assessed valuation.

School board president Blake Tiemann said the board didn't want to ask for help, but the district's reserves are being depleted to make up for the funding shortfall.

"We were trying to weather the storm through," he said. "But we feel like it's in the best interest of the district for us to keep some reserves on hand."

klamb@semissourian.com

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