After weeks of public discourse and discord, the Columbus Municipal School District approved its 2011-2012 budget and ad valorem tax request Monday night with no discussion and little fanfare.
The $43.5 million budget, which was first presented at a July 19 public hearing, includes a request of $13.39 million from the Columbus City Council. According to County Tax Assessor Greg Andrews, the request, which the city is legally obligated to honor, will result in a 2.9-mill tax increase for city residents. Based on a $100,000 home, that would mean a $28-per-year tax increase for homeowners.
Taxpayers may see additional millage increases once the city and county approve their budgets for next year. The council and the Lowndes County Board of Supervisors will approve their final budgets in September.
In a press release issued this morning, CMSD stated that the requested ad valorem taxes will not be enough to keep the district”s fund balance from decreasing. But it will allow time for them to review revenues and expenditures and come up with a “viable” cost-savings plan.
At a July 18 public hearing, CMSD Chief Financial Officer Kenneth Hughes said based on the budget, the district actually needs $14.33 million in ad valorem taxes, or a 9-mill tax increase, to operate without a shortfall.
Board members passed a resolution Monday night officially declaring a $909,818 shortfall, which “will prevent the district from meeting its financial obligations” for last year.
According to Andrews, the district has declared shortfalls nine out of the past 10 years. City Council members expressed concerns last month that if the district continues to operate under a shortfall each year, they could be taken over by the state.
Andrews said he anticipates further shortfalls in coming years, because population decreases in the city continue to cause the value of a mill to drop. One mill equaled $208,000 last year and $205,000 this year.
“That figure they”re talking about will break even, and that”s all it will do,” Andrews said of the $13.39 million ad valorem tax request. “All this is going to do is give them another year to decide what they”re going to do next year.”
The increase brings the total estimated millage to 65.87, up from 62.97 mills last year.
Carmen K. Sisson is the former news editor at The Dispatch.
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