Wednesday, July 9, 2008

Property tax bills for residents of Moon and Crescent will go up by 4.4 percent -- the maximum increase allowed under state law -- because of a $58 million Moon Area School District budget adopted Monday.

The school board approved an annual real estate tax rate of 20.47 mills, by 5-3 vote. School directors Benjamin Bonham, Jeffrey Bussard and Mark Limbruner dissented on the 0.86-mill increase. Bonham and Limbruner voted against the budget. School director Carol Cellini was absent.

The tax increase means a resident with a home assessed at $100,000 will pay $2,047 in school taxes, $86 more than last year.

This is the first year the district will receive a $957,000 share of gambling proceeds from the state for distribution to qualified homeowners in the form of homestead exemptions. Those homeowners will receive a tax reduction of about $144.

Moon resident Edwin Nelson, a former township supervisor, said after this week's meeting he's anxious about the tax hike.

"It looks like we're going to have a 0.86-mill increase every year until someone has the guts to vote this board out of office," Nelson said.

The increase represents the maximum allowed without holding a community referendum.

School board member Nick Pollock asked finance director Alan Bennett what consequences might occur if the board did not raise taxes.

"Your option would be significant cutbacks, or convincing the public to have a referendum" later to approve higher increases, Bennett said.

Superintendent Donna Milanovich said the budget was "very difficult to formulate due to increasing costs." Bennett said district officials cut about $1.2 million in proposed expenditures.

"We've done about as good a job with this budget as we could," said Bennett, who added the increase makes the budget "fiscally responsible."

Board member Mark Ulven said about 68 percent of the budget is salaries and benefits determined by contract with staff, including an increase of $1.1 million for employee salary and benefit increases.

The budget includes a five-year lease-purchase agreement of $1 million for social studies curriculum and technology purchases, as well as $325,000 additional for vehicle fuel and utility costs for school buildings.