REGIONAL – Despite requests to reconsider an increase in the school levy, the St. Louis County School Board opted to certify the levy as approved on a 5-2 vote at its Nov. 24 meeting. Board members Troy Swanson and Nancy Wall Glowaski had voted against the levy increase, which includes an additional $424 per pupil through the state’s new Local Optional Revenue program.

Both Dave Glowaski and Steven Herr spoke to the board during Monday’s Truth-In-Taxation hearing, urging the board to reconsider the levy increase.

Glowaski, who lives in Orr, noted that the district had anticipated a $1 million-plus surplus as a result of its restructuring plan.

But that surplus never materialized and the district, which had said it would not need additional operating levies, has now added two levies in two years, Glowaski said.

“A lot of folks are on fixed incomes and can’t afford the increase in taxes,” Glowaski told the Timberjay following the hearing.

Herr, who resides in the Cook area, prefaced his remarks by saying he had recently attended a strategic planning session and been impressed by the ideas expressed and the pride students had in their schools.

One of the goals outlined at the meeting was to build more community confidence in the school district and work as a team with communities served by the district.

Herr suggested a good start on that goal would be for the board to consider the impact that levy increases have on communities.

Approving a one-year levy that attempts to fund everything for the next five years was a lot for communities to absorb, he said. He recommended the board determine what was essential for the next year and scale back the levy accordingly.

Overall, the levy totals $8.54 million, an increase of $734,828 or 9.4 percent. But the biggest portion of the increase falls on local residents. Both the excess operating levy and Local Optional Revenue levy do not apply to seasonal or recreational properties.

Along with other increases in the operating levy and the district’s equity, the levy portion that applies to full-time residents will rise to $1.59 million, an increase of $934,323.

Legislators

enact changes

The new revenue streams for the school district stem from legislation enacted in 2013 and 2014 by state legislators.

In 2013, legislators gave districts the authority to levy up to $300 per pupil without seeking voters’ approval.

They increased that amount to $724 in 2014 by creating the Local Optional Revenue program that lets districts obtain an additional $424 per student.

According to School Finance Director Tom Melcher of the state Department of Education, Local Optional Revenue is subtracted dollar for dollar off of referendum revenue if a district has enough referendum revenue to take the subtraction from.

“Districts specify the revenue per pupil they want as one of many data items they submit online to MDE during the summer levy calculations,” Melcher wrote in an email to the Timberjay. “The district school board confirms that they want this revenue when they certify their levy. Districts can opt for less than the maximum $424 per student.”

Melcher reported that 295 school districts have requested the full $424 per pupil, 13 have requested less than $424 and 24 have not requested Local Optional Revenue.

Although the state provides some equalization on the additional dollars, the St. Louis County School District does not qualify for assistance so taxpayers will bear the full cost of the Local Optional Revenue levy hike.

Board member Glowaski said she tried to convince other board members to support her on reducing the levy increase or not taking any of the Local Optional Revenue funds, but couldn’t get enough support to swing the change.

“I’m really disappointed that we went for the maximum when people in our communities are already struggling with their taxes,” she said.

Swanson also attempted to get the board to reconsider the levy, suggesting the district reduce the Local Optional Revenue levy to $100 per pupil. He said the increased taxes placed a hardship on area businesses. “For businesses, that’s an additional $111 for every $100,000,” he said.

He also noted that although most of the tax revenue will be raised in Tower, Cook, Orr and the surrounding area, most of it will be going to other communities. Northeast Range in Babbitt needs about $5 million in improvements, according to Swanson, including work related to the school pool and a new roof for the building.

Business Manager Kim Johnson said some relief could be coming in the future.

The Legislature has established a fund using taconite dollars that can be used to pay down the bond debt that St. Louis County School District incurred for its restructuring. The district can apply for funding in 2015. Although it’s uncertain how much the district will receive, there has been talk of $2 million or more on an annual basis to reduce the $78.8 million in bonds and interest that the district is paying for its restructuring project.

Homeowners will actually see some reduction in the bond debt in 2015 because some of the bonds were refinanced at a lower interest rate.

Other business

In other business on Monday, the board:

• Took no action on a proposal to purchase and install bronze plaques at each school recognizing the board members, superintendent, business manager, Johnson Controls, Krause Construction and Architectural Resources Inc. for their role in building new and remodeled schools. Cost of the plaques was estimated at roughly $10,000. The proposal also included a plaque for the Cherry School, the recently completed expansion of that school recognizing key partners in that project.

• Heard the Field Township was working with the Minnesota Department of Natural Resources to provide adjoining land for use as a school forest for the North Woods School.

• Took no action on a request for the board to approve a school song for North Woods School.

• Approved the calendar for school board meetings in 2015. The first meeting will be Jan. 5 at the district office in Virginia. Meetings will begin at 5 p.m. unless otherwise noted.

• Okayed a memorandum of understanding in the teachers’ contract that provides $1,750 per year in additional pay for Tower-Soudan teachers who agree to teach two classes of students during a single classroom period.

• Hired Taylor Sauter as a health assistant at Cherry School and Lenny Johnson as Community Education coordinator at South Ridge School. In related business, custodian James Stell was reassigned from Tower-Soudan to South Ridge for an additional three hours per day, effective Dec. 22.

• Corrected language in a motion to offer Tiffany Clemenson a paraprofessional contract.