Big Lake’s rising property valuation for tax purposes is serving the community well.
But it is a drawback for Big Lake Schools, which is seeing shrinking state aids due to the rising valuations.
That was the focus as Finance Director Angie Manuel walked the Big Lake Board of Education through their preliminary tax levy for 2020 Thursday evening.
“Overall, in 2019 we lost equalization aids from the state,” she said.
This year will be the same as the district’s tax base - based on new construction and increased valuations to properties amounting to at least 10% - will result in decreased aids.
Their proposed tax levy of $10,506,471 will show a hike of $161,864 due to need for additional revenue; the remaining $571,183 increase will be due to offsetting decreased state aids.
Their proposed tax hike for 2020 will be 7.5%, compared to a hike of 8.7% last year.
“It’s a little better than last year,” said Supt. Steve Westerberg.
The general fund levy will be $4.866,733, up from $4,227,699 last year.
The community services fund will be $391,500, up from $377,713 last year.
And their debt service levy will be $5,248,238, up from $4,781,246 in 2019.
Of the district’s approximate $44 million budget, about $34 million (77%) goes to the general fund.
The local property tax levy comprises about 12% of that fund, while state aids comprise 84%, federal and local inputs average about two percent each.
She noted the school’s debt service equalization aid from the state is gone.“We’re doing well from a tax standpoint,” remarked Board Chair Dan Nygaard.
But there are drawbacks to that, too, he noted.
The board will study the proposed preliminary tax levy over the next months before finalizing it to the county in December.
There is reason for optimism with the district’s budget for this year. The district reported last week it had gained 84 new students, and with each student comes an approximate $8,000 state aids increase.
That has resulted in the hiring of new elementary teachers and special education staffers.
BLMS Principal Mark Ernst reported his school has been enrolling new students, he reported 26 or 27 new students this fall.
Quizzed by the board as to where they are coming from, he noted, “some from the Metro and some (at BLHS) from out-of-state.
Manuel said this year’s budget is in good shape. “We budgeted for a decrease (in students) and we are well over budget.”
The board heard a presentation from high school officials on the vaping situation and programs set in place to counteract student use. See story in next week’s Tribune.