Baldwin City school board trims back budget, defers action on community center

The Baldwin City school board on Monday approved a budget that trimmed about $80,000 from the 2016-2017 budget approved for publication earlier this month.

The board unanimously passed the budget with a property tax levy of 63.674 mills, which is 2.043 mills less than the 2015-2016 mill rate. At that rate, the school district’s share of taxes on a $200,000 home would be $1,414.

The last-minute budget cut was made to the district’s bond and interest fund. Superintendent Paul Dorathy and district financial director Cynde Frick said they recommended a 1-mill decrease in that fund to hedge against a possible large mill levy increase after the Kansas Supreme Court rules on the constitutional question of the state adequately funding K-12 education and the Kansas Legislature’s response to such a ruling. However, they agreed that another mill reduction to the bond and interest fund would be sustainable.

That was what the board chose to do, noting the 2017 property tax increases approved in Baldwin City and Douglas County budgets.

In the other big item on the agenda, the board tabled until next month any decision about raising the Baldwin City Recreation Commission’s mill levy by 2.75 mills to help pay for a new community center.

The board also agreed the district would work with BCRC Director Steve Friend on a mailing to be sent to all district households before the board’s Sept. 19 meeting, which would explain why the district is involved in the community center project and the options before the district.

The board is involved because the BCRC has no taxing authority. Thus, the board approves its annual 4-mill levy that supports BCRC’s operating budget, and another 1 mill for its salaries and benefits. It would likewise have to approve the 2.75 mills, which would pay for half of the $5 million community center.

The Baldwin City Council has approved putting a Feb. 7, 2017, referendum before city voters on a half-cent sales tax that would provide the other $2.5 million needed to build the community center.

As district legal counselor Brad Finkeldei explained, the state statute school allowing the board to increase the BCRC’s mill levy for the community center doesn’t require, or allow, a districtwide referendum on that decision unless there was a successful protest petition.

The “weird” state statute also doesn’t allow the school board to pass a mill levy increase conditional on city voters approving the sales tax, nor to ever rescind the mill levy increase — even should the sales tax be rejected, Finkeldei said. The tax would be subject to a possible protest petition annually, as is the BCRC’s current property tax assessment, he said.

The added BCRC mill levy authority would not sunset when the community center debt was retired, although future BCRC boards would not have to levy the tax, Finkeldei said.

That information leaves the board with the options of refusing to increase property taxes for the community center, approving the tax increase or passing a nonbonding resolution of its intent to approve a tax increase if city voters approve the sales tax increase.

Although a nonbonding resolution would avoid the prospect of the added mill levy remaining in place should city voters reject the sales tax, it did set up opposite possibility should the board defer action on the property tax hike. City voters could approve the sales tax, only to have district voters reject the property tax increase in a subsequent referendum following a protest petition, Finkeldei said.

With the hope the mailing would help the public better understand the complexity of the issue, the board agreed to table the issue for a month.

In other business, the board:

• Approved the refinancing of $8.8 million in bonds dating from 2008, 2009 and 2010, which will save the district $309,000.

• Learned of issues with online enrollment, which the district is working through. Dorathy said an evaluation would be made later in the school year about whether the district would look for another software provider for next year.