Charles City School Board explains new levy rate

By Travis Fischer, tkfischer@charlescitypress.com

The Charles City Community School Board discussed finances of fiscal years past, present, and future during its regular meeting on Monday, April 8.

Following a short, separate meeting to hold a public hearing for the fiscal year 2024-25 budget, the board entered its regular meeting, receiving a rare public comment from the audience as Dean Grober asked about the increase in the general property tax levy for the upcoming fiscal year.

Next year’s levy is increasing 45 cents from its current rate, bringing it up to $13.38 per $1,000 in valuation. Grober asked for the reasoning behind the rate increase and how it compares with other districts.

“I’d like to know what the other schools are asking for the same deal,” said Grober.

The board explained that the primary driver of the tax increase is to make up for shortfalls in the special education deficit.

“The cost of running the special education program was more than we anticipated,” said board member Dr. David Schrodt.

Grober, who said he considers his property to be his retirement fund, asked if the district was taxing other forms of retirement income to pay for the shortfall, if renters also contribute to the budget, and if other avenues like sales tax were available. It was explained that school districts have narrow avenues for generating revenue that are set by state law.

“Property is taxed. Whoever owns the property is taxed,” said Schrodt. “We don’t control that. It’s not our choice.”

It was also explained that the Charles City school district is not unique in dealing with shortfalls in funding.

“Nashua is having the same thing,” said board member Bruce Koebrick. “If you were in Chickasaw, you would have gotten the same notice from them.”

After discussing next year’s finances, the board received a presentation from Alex Barr of Anderson, Larkin, & Co, who walked them through the FY23 audit.

Highlights of the report detailed that revenues decreased by $600,000 from the previous year, and expenditures likewise decreased by about the same amount.

Moving on to this year’s finances, Director of Finance Calli Boeckmann gave the board an update on the district’s spending and revenue for the current year.

At the district’s current rate of spending, expenditures are expected to reach $24.5 million by the end of the fiscal year, more than $2 million more than the district’s revenue for the year. The district will be able to draw from cash reserves this year to cover the shortfall, but Boeckmann warned that next year’s expected revenue dropping by $141,000 will make the financial situation even more difficult in the future.

The board also briefly discussed the recently passed state law mandating a new minimum salary for new teachers, noting that there are teachers in the district with just a few years under their belt that do not qualify for the new minimum salary and thus may end up in a position where they are making less than a brand new teacher.

In other business, Susan Leeper and Catherine White gave the board a presentation about the district’s Home School Assistance Program, a district-run program that provides assistance and coordination with home schooling families in the area.

“We are kind of the bridge between the home schooling families and the district,” said White.

The program currently services 47 students in 22 families, offering educational resources, coordinating social activities, and serving as liaisons to connect home schooled students with the district for extra-curricular programs or dual-enrollment into specific classes.

The district receives 30% of the standard per-pupil funding for each student in the program, with additional funds for the 16 students that currently dual-enroll into classes. Positive word-of-mouth about the program has even resulted in 11 students open-enrolling into Charles City from outside the district, they said.

In new business, the board approved a curriculum change, making 11th grade health a required elective course for the 2024-25 school year in order to ensure students are receiving state mandated health education.

The board also approved the 7th/8th grade band trip, taking students to Valley Fair in Shakopee, Minnesota, to perform and play.

Finally, the board revisited a proposal to enter into an agreement to have solar panels installed on school buildings. After reviewing the contract and determining that the cost/benefit of the program would be a wash at best and may even cost the district, the board decided to not follow through with the proposal.

“If we’re going to spend more money, I think it’s not a good idea,” said board member Josh Mack.

After concluding regular business, the board went into closed session to review candidates for the district’s new superintendent. The board is examining “semi-finalists” for the position and will begin to involve more public input once a field of finalists has been narrowed down.