NCSD School Board discusses 2018 budget, tax rate

The Newton Community School District’s proposed budget for 2018 took center stage during much of Monday’s board meeting.

The board shared ideas and considered different options during a lengthy discussion led by Director of Business Services Gayle Isaac. As it currently stands, the total proposed budget for 2018 adds up to about $73.1 million.

The general fund accounts for more than $31 million, and of that, more than $21 million is proposed for instruction in the classroom. Other general fund expenses include administration, maintenance and student transportation.

The total budget in 2016 was about $27 million less than the proposed budget for 2018. This seemingly large spike is the result of costs for the new Berg Middle School. Budget distributions for the general fund have remained relatively constant over the last several years.

The proposed instructional support income surtax rate is 7 percent, up from the current rate of 5 percent. Under the new proposal, the property tax rate will see a slight decrease. The current rate is $15.76 per $1,000 of taxable value, and the proposed rate for 2018 is $15.74.

Board member Josh Cantu said one of the things the board discussed when looking at taxes and talking to community members was keeping a mostly steady tax rate.

Board President Travis Padget reiterated that line of thinking. He said it is about taking care of the school district but also being fiscally responsible for community members and business owners.

The proposed budget includes a cash reserve levy of $300,000. This money would be used to help pay the district’s bills during the summer months of July and August when Department of Education funds are not coming in, Isaac said.

Even though there is no school during these months, the district still has expenses like custodial staff, utility bills and buses for summer sports. There are also maintenance projects expected in the summer. The $300,000 would provide the district with a cushion, Isaac said.

The district’s spending authority is about $4.7 million. However, NCSD’s fund balance will sit at an estimated $1.6 million by the end of this year, according to Isaac. The fund balance is essentially the amount of cash on hand that the district actually has to spend.

The school board approved April 10 for a public hearing on the proposed budget. The public hearing is scheduled for 6:45 p.m. at the EJH Beard Administration Center. Residents who wish to speak for or against the budget may do so at that time.

Following the public hearing, the board will take action on certifying the budget. If the budget is approved, Isaac will submit the paperwork to the county auditor and upload the documents to the Iowa Department of Management.

The complete proposed budget will be published in the Newton Daily News 10-20 days before the public hearing.

Contact Justin Jagler at 641-792-3121 ext 6532 or jjagler@newtondailynews.com