Davis School Board eyes tax hike

Davis School Board eyes tax hike
Clipper
FARMINGTON — The Davis Board of Education is seeking public input at its Aug. 7 meeting. The board is considering voting to expand its Voted Leeway property tax to the maximum limit allowed — something that could bring about $2 in state funds for every local dollar raised.

What that means for Davis schools is if the county pulls in an increase of $1.87 million in property taxes, then an additional $3.5 million will come from state tax monies. That’s money which the board members agreed the district could not afford to lose.

“One of the messages we keep hearing from our legislators over and over when we ask them for more funding is, ‘You are not fully utilizing the funding opportunities that are yours now,’” said board member Bill Moore. “So we need to step up to the plate.”

In past years taxes have been kept low because as house values increase taxes rates could be lowered to maintain the same level of funding. “Our system in the state of Utah is not rate-driven. It is revenue-driven,” said Bruce Williams assistant superintendent and business administrator.

The maximum tax rate is set by the county, and the current rate is below that maximum. “We are at a point now where we have to raise those rates up…or we will lose money,” Williams said.

Board members accepted the first proposal of the possible tax increase Tuesday night for the 2007-2008 budget, but will have to wait for final approval later. The increase would actually boost four tax levies, the Voted Leeway, Board Leeway, Reading Achievement and Transportation, said Williams.

The Voted Leeway Levy is used for general supplies, textbooks, computer equipment and to fund the capital impact of new schools on the operating budget. If the increase is approved, it would generate $1.3 million for the district. If it is not approved, the district would lose $2.7 million, Williams said.

For example, three new schools are opening this fall: Syracuse High School, Ellison Park in Layton and Snow Horse in west Kaysville.

The Board Leeway Levy is earmarked for class-size reduction. This levy would generate $331,000 if approved. Without it, the district would lose $683,000.

The Reading Achievement Levy is used to raise funds for the K-3 reading program, and finally the Transportation Levy is used to fund hazardous bus routes, activity buses, field trips and purchasing of new buses.

“The reason we want to do that is that for three years after the maximum levy is put into place, we can operate as though we’re at maximum even though the certified tax rate falls for three years. If we don’t increase it, state revenue falls off,” Williams said.

If the board approves the local tax increase, it would mean homeowners would pay an additional $17 a year on a $190,000 home, which is estimated to be a median-priced home in Davis County. Board members are trying to be cautious about raising property taxes, but they need the money for the $555 million budget for the 2007-2008 year to work.

“We also need to point that out to the public; that the Legislature has directed us when it comes to funding to be responsible,” Tamara Lowe, board vice president, said.