TONTOGANY – It’s no longer a question of when, but of how much additional funds Otsego Local Schools will ask of its residents.
At a June 15 special member, board members took the first step to placing an income tax on the Nov. 7 ballot.
The board approved a resolution of necessity, asking the Wood County auditor what income tax is needed to collect $2.97 million dollars.
The answer should be 0.75%, said Treasurer Steve Carroll.
The board, however, leaned toward asking voters to support a 0.50% income tax.
The board hopes to have the subsequent tax amount at its June 28 meeting, which will start at 7:30 p.m.
An income tax is the safest revenue stream, Carroll said, and is the fairest tax.
The district’s request would be a continuing tradition income tax, he said.
Without the extra income, the district will continue to spend more than it takes in for each of the next five years and is expected to reduce its unreserved cash balance to $2.51 million at the end of fiscal year 2027.
Carroll provided a five-year forecast for a 0.25%, 0.50%, and 0.75% income tax.
A 0.25% income tax is expected to generate $992,472 by the time full collection is made in fiscal year 2026; the 0.50% would collect $1.04 million and the 0.75% would generate $2.97 million.
All three will increase revenues over expenditures in fiscal year 2025.
“It’s been a really, really long time since we’ve asked. We’ve been very lucky,” said board President Brad Anderson.
The last time the district asked voters for new operating money was in 2002 with a 1% income tax, said Superintendent Kevin O’Shea.
“I don’t know if we want to kick the can down the road any longer,” said board member Jamie Harter.
It’s not easy to get an income levy passed and the current economic climate is not great, he said, but to wait is to delay.
We need to clearly articulate what the additional funds will do for us, Harter added.
“This money is to keep things going. This is to continue to provide the best education we can for our kids,” Carroll said.
“I want to see it continue to improve and not just maintain,” said board President Brad Anderson.
“We have one of the lowest per pupil costs of any district in the area,” O’Shea said.
Three times in the last 10 years the district put a levy on the ballot only to pull it off when additional funds became available. One time was after a re-evaluation of property tax, then Nexus came to town, and finally the COVID grants, Carroll said.
“The time’s come,” Harter said.
Carroll warned that last year’s grain prices were high, which helped create a $500,000 jump in income tax collection. Farmers are expected to make less this year, he said.
Anderson suggested asking for 0.75% this fall and if it fails, come back with 0.50% next spring.
Board member Mark Tolles immediately shook his head in dissent and said such a move would hit the credibility of the district.
Also at the meeting, the board:
• Heard a request from board member Jessica Mehl that the district create a no-activities period for when families can take vacation.
A lot of families have kids in multiple sports and it’s difficult to plan vacations, she said.
It is too late to do anything this year, but he will try for the first two weeks of July in 2024, O’Shea said.
• Heard Carroll say after the facilities bond is paid off in 2031, the district will not have any debt.
Anderson warned the district was one subdivision away from needing more classrooms.
That is something that needs to be considered, he said.
Carroll said once a developer buys land, the district is in trouble as it can’t add to facilities as quickly as houses can go up.
• Learned fuel cost for buses is per mile is 28 cents, maintenance/repair cost per mile is 16 cents, and staff cost is $1.10 per mile.
The cost per rider is $755, which is the second lowest in the area.
The investment in the propane tank was paid off in six months rather than the couple years originally expected, Carroll said.
• Approved the retirements of Ryan Braucksieck, custodian, and Tina Helle, art teacher.
• Gave one-year contracts for the 2023-24 school year to Katie Brannan and Leah Croce as special education preschool teachers; and Olivia Schaffer as junior high/high school choir director.
