Otsego Local Schools Board Considers Income Tax Request for Community Support

 Introduction:

The Otsego Local Schools Board of Education recently convened to discuss an important matter that will impact the district's financial stability and future operations. The board is currently deliberating an income tax request that will be presented to voters in the upcoming fall elections. This article aims to provide an overview of the key points discussed during the meeting, including the proposed income tax rates, the district's financial situation, previous funding attempts, meal prices for the next academic year, and recognition of a state champion athlete.

Proposed Income Tax Rates: During the meeting, board member Mark Tolles proposed two resolutions of necessity for an income tax, with one resolution aimed at determining the collection rate for an amount between $1.95 million and $2 million. The assumption is that the rate will be set at 0.50%, although the final decision will be made in the next meeting. The board has been considering two options: a 0.50% or a 0.75% income tax to be presented to voters in November. The previous request was for a resolution of necessity for $2.97 million.

Financial Situation and Need for Additional Income: According to Treasurer Steve Carroll, the department of taxation estimates that a 0.788% income tax would generate the requested $2.97 million. However, this amount has been rounded down to 0.75% for ease of calculation. If the district were to opt for a property tax instead, this rate would be equivalent to 9.1 mills. Carroll also mentioned that the 0.50% income tax is expected to collect $1.95 million, and the exact amount will be confirmed in the next meeting. Without the additional income, the district anticipates spending more than its revenue for the next five years, leading to a reduction in its unreserved cash balance to $2.51 million by the end of fiscal year 2027. To maintain financial stability, the district requires $2.97 million.

Previous Funding Attempts and Considerations: The district has not sought new operating money since 2002 when a 1% income tax was requested from voters. In the past decade, there have been three instances where the district put a levy on the ballot but later withdrew it due to the availability of additional funds. These instances occurred after a re-evaluation of property tax, the arrival of Nexus, and the receipt of COVID grants. The current income tax request aims to provide ongoing financial support for the district's operations.

Meal Prices for the 2023-24 School Year: The board also addressed meal prices for the upcoming academic year. At the elementary level, student breakfast will cost $1.50, and lunch will be priced at $3. At the high school, student breakfast will be $2, and lunch will be $3.25. Adult breakfast will be $2.50, and lunch will be $4.25. Additionally, milk will be priced at 50 cents, and a la carte entrées at the elementary and high school will be $2.50 and $3, respectively.

Recognition of State Pole Vault Champion: During the meeting, the board took the opportunity to recognize Dakota Kiefer, the state pole vault champion. Dakota will continue his athletic career at Youngstown State University in the fall. As a tribute to his achievements, his name will be added to the sign of state champions located in front of the high school.

Conclusion: The Otsego Local Schools Board of Education's recent meeting highlighted the district's ongoing efforts to secure additional funding through an income tax request. The proposed rates and financial considerations were discussed, emphasizing the need for community support to maintain the district's financial stability. The meeting also addressed meal prices for the upcoming academic year and recognized the accomplishments of Dakota Kiefer, the state pole vault champion. The board's decision on the income tax request will be finalized in the next meeting, ensuring the district's continued ability to provide quality education and support to its students.