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Orange School Board OKs levy for ballot
(by Sali McSherry - July 28, 2011)
Orange School Board OKs levy for ballot
By SALI McSHERRY
The Orange School Board unanimously agreed Monday on a 5-mill operating levy to be placed on the November ballot.
The levy would generate an estimated $5 million a year and cost an estimated $153 annually per $100,000 of property valuation, according to school district Treasurer L. Gregory Slemons.
On Saturday, the board met to consider several millage rates, ranging from 4.5 mills to 6 mills. While the school board decided earlier in the year to put a levy on the ballot, members said they didn't want to make a determination on the millage until they knew how much the additional cuts to the district would total in the new state budget that was completed at the end of June.
The district wanted to be fair to taxpayers and students and didn't want to ask for too much or too little, Mr. Slemons said. That's why the board held off for so long in setting the millage rate, he said.
Due to cuts in the state budget, Orange schools are slated to lose $700,000 in fiscal year 2012 and $1.075 million in fiscal 2013 due to the elimination of the tangible personal property tax and electric deregulation reimbursements, Mr. Slemons said. The district is projected to lose a total of $5.9 million through fiscal 2016, he said.
It's been seven years since there was a levy on the ballot, he said. The Orange district extended its levy cycle three years beyond officials' original four-year projection, he said.
"Although we have already reduced expenditures by $1.4 million and we will continue to reduce costs, it is critical to pass the November operating levy," said Superintendent Nancy Wingenbach.
The district will have to remain diligent in being fiscally responsible to maintain its AAA from Standard & Poor's and a rating of Aaa from Moody's Investors Service, the best rating possible, and which allows the district to borrow at lower interest rates, Mr. Slemons said.
In 2007, the district saved taxpayers $1 million in future interest payments by refinancing its outstanding bonds, Mr. Slemons said. Also, the district will receive revenue because money set aside for funding will be in an account-earning interest. This groundbreaking process would not have been possible without the district's AAA financial rating, he said.
With unique financing of the new Brady Middle School gymnasium, the district was able to cut back on expenditures and increase revenue, Mr. Slemons said. Rather than pay for the facility upfront, Orange sold notes to a private investment group and is paying the loan back over 10 years. The federal stimulus plan is paying the interest on the loan, so it is nostt costing Orange schools any additional funds beyond what was borrowed, he said.
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