School levy to drop

The school portion of property tax bills in the Medford School District could go down slightly under a tax levy approved by electors at Monday’s school district annual meeting.

School finance director Audra Brooks reviewed the proposed budget including the portion that is covered by state aid and other revenues. Altogether, including the $11 million in revenue from open enrollment that is brought in largely by students enrolled in the Rural Virtual Academy charter school, the district total budget is about $38.2 million.

The overwhelming majority of that is funded through state aids and other revenues. As Brooks explained the portion left after the other revenues are subtracted is what is assessed to local property owners in the levy. “The more we receive in state aide, the less we tax,” Brooks said.

In the 2023-2024 school year the total levy for all funds was $8.04 million.

The proposed school levy that was approved at the annual meeting is $7,907,131 a decrease of 1.68% over last year.

Based on that levy, and the equalized value of the district going up 4.3% from last year, the projected tax rate is $5.53 per $1,000 of equalized value. This is a decrease in the tax rate of 5.71% from last year’s tax levy of $5.87 per $1,000 of equalized value.

See MEDFORD on page 4 Brooks noted that the average tax rate across all school districts in the state is $7.18 per $1,000 of equalized value and said that she expected the final tax rate for the Medford School District to actually be lower than what was projected at Monday’s annual meeting.

Brooks noted that there remain some major question marks in being able to finalize the budget. Among those is the district’s fall enrollment totals. State aid is based on student population counts which are determined in September and aid amounts are not released until October.

The other significant question, Brooks said, will be the outcome of the proposed $22.6 million school referendum for building and facilities maintenance and improvement projects including new tech ed spaces along with science and English classrooms and accessibility improvements at the high school.

Brooks said the results of the referendum vote in early November will impact the amount of the levy by adding in longterm debt service payment. She projected that the tax rate would be at about $5.99 or $6 per $1,000 of equalized value. The net impact to homeowners would be to pay about $13 more in taxes on a $100,000 home if the referendum passes.

However, Brooks noted that may even be projected higher than actual. School districts borrow funds at a lower tax-free municipal rate. She said the estimates from the school’s bond advisors for the referendum are based on interest rates of between 5% and 5.25%. Brooks noted that municipal bonds were going for between 4% and 4.25% interest rates, a full 100 basis points below Baird’s estimate. A lower interest rate would be a benefit to taxpayers with lower financing costs over the life of the bond.

The school board is required to pass a final budget and levy by the end of October. Brooks said that she will be asking the board at that meeting to approve two budgets, one based on if the referendum passes and the other based on if it does not pass. This will allow her to meet the requirements and move forward with certifying the levy and getting the information to the county in a timely manner.

In addition to the budget review, electors at the annual meeting approved the salaries for school board members. They will remain the same as last year with the board president being paid $125 per meeting, the clerk being paid $120 per meeting and other members being paid $100 per meeting for board meetings they attend. Members will be paid $60 for committee meetings they attend.

Following the annual meeting, board members met for a special school board meeting where they approved an exchange student request for a student to come from Norway this coming school year.

Board members also approved a lease agreement to lease a portion of the building at 1480 County Road XX in Rothschild for a learning center for the RVA.

The RVA previously leased a building in Mosinee for this purpose, but as RVA administrator Charlie Hecke explained that property was purchased by Valley Community Credit Union which plans to build a new office there. The RVA has until December 31 to relocate its learning center.

Heckel said they have been looking in the Hwy 39 corridor for options. The Rothschild location, located near Cedar Creek Mall, is centrally located with 198 RVA students within a 30 minute drive, 778 within an hour drive, and 1,064 students with an 1.5 hour drive of the new learning center.

Because the RVA is part of the Medford School District, the Medford School District is the entity leasing the building, although the costs of the lease and utilities of the structure are paid for through the RVA.

Heckel presented a 10-year lease on 9,200 square feet of the building that will be used year-round. He noted there is additional open space in the building that will be leased on an as-needed basis for things like state testing or for special events such as the RVA prom. He also noted that the lease has the ability to be broken after five years if the district were to decide not to renew the RVA’s charter.

The rate for the lease is $10 per square foot, with the shared utilities for the building at an additional $7 per square foot. Heckel said there is a 2.5% rental rate increase per year built into the lease agreement.

Board member Steve Deml, who represents Medford Schools on the RVA governing board, said that board appsroved the concept and location at its most recent meeting.

Board members approved the 35-page lease agreement that had been previously reviewed by the school district’s attorneys.

In other action, the board approved some last minute personal changes with new hires for interventionists, assistants and transfers for remediation assistants.