Waconia school board sets tax levy for 2023

The state sets tax policy and levy limits for local public schools. The local tax levy is based on many state-determined formulas, plus voter approved referendums.

District 110’s tax levy is generally flat for 2023 – a total increase of just over $14,000, or .08 percent, according to Ra Chhoth, director of finance and operations.

The general fund is up about $403,000 due to a voter approved operating referendum that includes authority for an annual inflationary increase. That increase is largely offset by a reduction in the district’s debt service fund.

ISD 110 has sustained generally flat budgets the past few years as guided by the district’s statutory operating debt (SOD) recovery plan, while benefitting from additional revenues authorized in a voter-approved operating levy in 2020.

Chhoth noted that many factors can cause a tax bill to increase or decrease from year to year. One of those is changes in property value. For an individual or family with a home value of $400,000 the total estimated school tax from the 2023 tax levy is projected to be $1,776.

The school district’s fiscal year coincides with the school year, running July 1 through June 30, so 2023 taxes won’t provide additional revenue until the 2023-2024 school budget year. The budget process for next school year will start in January 2023 and the budget is typically adopted in June.

State funding accounts for about 80 percent of most public schools’ general expenses, and the Waconia school district’s total budget for the current year amounts to about $64.2 million. About $52.7 million of that is in the general fund, the bulk of which goes to teacher salaries and benefits, also educational services, supplies and equipment. Nearly $9.7 million is for debt service, $2.4 million for food service, about $3.1 for community education, and the remainder in other funds, such as internal expenses, building construction and trusts. No major construction projects are planned this year.

In other business, the school board recently conducted a mid-year evaluation of new Superintendent Brian Gersich. In an evaluation summary shared at the Dec. 19 meeting, Board Chair Dana Geller stated, “Superintendent Gersich has proven himself to be a successful leader for ISD 110 thus far… All goals are actively in progress and the school board notes that Superintendent Gersich is making great strides in all areas.”

Some of the focus areas include a comprehensive budget plan initiative to move ISD 110 out of SOD, an audit of current facilities, and transparent communication with all stakeholders.

The Dec. 19 regular meeting also marked the final meeting for four outgoing board members, including Mike Bullis (2011-2022), Rachel Myers (2019-2022), Brian Rothstein (2011-2019; 2021-2022), and Jackie Johnson (2019-2022).

The four outgoing members were presented with a lifetime pass to Waconia activities as a show of appreciation for their years of service and a way for them to stay active and engaged in our school community.