Monday evening members of the Superior Board of Education approved a total tax levy of 1.111785 down from 1.186505 last year. This year’s levy is the lowest asking rate in the past six years. However, it does represent a three percent increase in local tax revenue because valuation has increased. Thus tax bills will be higher.
The asking will generate approximately $204,000 more than last year.
The levy is expected to generate $6,780,504 of this total $565,657 will be used to pay for the elementary school building construction bond.
Property tax generate most of teh local revenue which accounts for 55 to 65 percent of the total funds needed by the school. Carline taxes, public power sales tax and motor vehicle tax also contribute.
State receipts account for 20 to 30 percent of the revenue and federal funds add another five to 10 percent.
State aide to schools in Nebraska has fluctuated wildly since 2009-10 in which the district received $2 million in state aid. In 2016-17, the district received almost nothing in state aid. State aid in the amount of $1,018,332 is expected for this school year. This is $123,068 more than last year.
Besides state aid, money from the state is also received for special education.
Tax money provides money for the for the general fund, the bond fund, special building fund and the qualified capital purpose fund referred to in conversation as QCPUF.
The General Fund finances all facets of services rendered by the school district and expenditures are limited by statute. The tax levy for this fund is restricted.
The General Fund cannot be used to purchase buildings or land for the district, those are functions of the Special Building Fund. This General Fund is a taxing fund and the levy is restricted to $1.05.
The levy for Superior’s General Fund will be .92750 this year. It is by far the largest of all the school funds and expenditures from it are approved monthly by the board of education.
The Nebraska Unicameral updated the Qualified Capital Purpose Undertaking Fund (QCPUF) in May expanding what it may be used to do.
It may be established for the removal of environmental hazards, the reduction or elimination of accessibility barriers in school district buildings, the repayment of a qualified zone academy bond issued for a qualified capital purpose, modifications for life safety code violations, life safety hazards, school safety infrastructure concern, or mold which exists within one or more existing school buildings or the school grounds of existing school buildings controlled by the school district. The QCPUF Fund is a taxing fund and not part of $1.05 cap. Since April, 2016, the tax levy for this fund has been restricted to three cents.
Valuation Continues to Increase
Valuation increased from $554,212,197 last year to $581,922,807 this year. A change of 10 percent. For the school that means each penny levied will generate 10 percent more revenue. This year one penny on the levy will generate $60,988.
The school district’s valuations have increased more than 100 percent from 2010 to 2023. During those years, valuation dropped four years, three were consecutive 2016-17: (-7.43 percent); 2018-19 (-4.71 percent) 2019-20 ( -5.91 perent) 2020-21 (5.92 percent) and 2021-22( -3.50 percent). However, those drops were after an increase of 30 percent in 2014-15 and more than 24 percent in 2015-16.
There is some concern amongst board members that valuation could drop again.
Property tax request is also influenced by state aid. As valuation increases, state aid generally decreases, thus increase money needed from property tax.
Future Year Budget Projections
Carl Dietz, Northland Securities Inc., reviewed financial planning and tax requests with the board of education Aug. 20 during a budget workshop. From 2019 to 2023 the district spent $1.2 million more than it received. During that time the junior-senior high school was reroofed and the remodeling of the front entrance, administrative offices, rest room and locker rooms was completed. The project focused on school safety and replacing fragile plumbing.
During the same time period, a focused curriculum effort began to improve scholastic performance.
Dietz projected the district’s revenue should outpace expense for the next two years. Last year’s income helped replenish the school’s cash reserve. Part of this year’s goal is to replenish the QCPUF fund.
Budget Asking Increased
By law, Nebraska schools are restricted in the amount they can increase their budget each year. Thus, administrators encourage boards to increase the budget asking each year, even if it is not immediately required.
Members of the board voted unanimously to increase the schools’ budget authority up to seven percent. Supt. Whetzal does not expect to use it this year. However, things can change rapidly as the Unicameral considers property tax changes and school finance. The seven percent budget increase paves the way for increase tax asking next year if needed.
Payroll Costs Increase
Payroll expenses increase $600,000 this year. A fifth grade position and a upper level science position were filled. Both were vacant last year. A full-time speech language pathologist was added. Two staff members now fill positions which were purchased from ESU 9 last year. Overall the change is expected to increase services and decrease the overall cost. Payroll is projected to increase 3.5 percent annually. It includes fringe benefits like health insurance. A family insurance plan costs the district $16,000 this year.
Other Business
August general fund expenditures in the amount of $814,570.85 were approved. Morgan Kroeger was appointed treasurer. She replaces Kim Williams who has served as the district’s treasurer for many years.
Stephanie Corman - activities director, Logan Christiancy- technology coordinator, and Cody Fierstein, head of maintenance, demonstrated computer software being used to manage the school’s schedule and assets. Lots of time is being invested in entering school related data. For example, every HVAC unit, fan, light, vehicle etc, with purchase date, its location, service related information is entered. Perhaps, of most interest to students, is the tracking of vehicles. Routes are recorded, time waiting at a location, how fast it is traveling and where it stops, miles traveled, etc. are recorded.
The data collected can be used to generate reports needed for special education reimbursement, maintenance schedules and determining when a vehicle should be retired.
Fall testing has begun at both the elementary and secondary levels.
Megan McMeen, the school nurse, is offering a dual credit CNA and Med Aid class for interested students. Four students have enrolled in the CNA class and two in the Med Aide.
Sixth grade to 12th grade enrollment now stands at 216 students. There are 24 sixth grade students, 33 in both seventh and eight grade, 29 freshmen, 27 sophomores, 40 juniors and 30 seniors.
The numbers of girls and boys in the ninth, tenth and eleventh grades determine what class the school’s athletic teams compete with. Superior’s winter sports classifications have not yet been determined.
Zach Gowen, from CoolSpeak, is to speak to students Sept. 18. He is a paraplegic. As a motivational speaker, his focus will be perseverance, positive school culture and goal setting.
The board entered into executive session to discuss personnel shortly after 9 p.m. before adjourning.
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