Athens electors okay line of credit
Voters at Monday’s Athens School District annual meeting authorized the Athens Board of Education to borrow up to $2 million from Forward Bank, Athens, if a Tuesday, Nov. 8, operations referendum fails and the district runs short of cash. Athens School District faces a $842,000 budget shortfall in this year’s 2022-23 school year if the operations referendum fails. The school district is asking voters in the Nov. 8 election to approve two referendum questions– one for operations and the other for capital improvements.
The school district is seeking a phased-in recurring operations referendum to exceed its revenue limit by $900,000 in 2022-23 and $770,000 in 2023-24 for a total of $1.67 million. The referendum has no end date.
School district business manager Beth Steinke said if the operations referendum fails Athens School District will need to borrow money for the 2022-23 school year and also try to pass an operations referendum again on April 4, 2023.
“Passage of the operational referendum is crucial to continue operating the school,” Steinke said. “The estimated revenues for operating Maple Grove Charter School exceeded the expenses in the 2021-22 school year.” Athens School District has seen its average enrollment drop from 524 in 2010-11 to 413 in 2022-23. Its revenue limit has at the same time shrunk from $5.5 million to $4.8 million. Athens School District acquired Maple Grove Charter School in the town of Hamburg in March of 2022, but the school district isn’t able to count all 90 of Maple Grove’s students for revenue limit purposes because the state uses a three-year rolling average formula.
After three years, the school district will be able to count all students attending Maple Grove Charter School and will see its revenue cap expand. The school district, however, needs to find a way to financially survive over the next few years.
Athens voters provided the school board with a backup plan of being able to borrow money from Forward Bank if the operations referendum fails on Nov. 8. With this line of credit, the school district will be able to pay teachers and fund student programs.
Elise Murn, consultant for R.W. Baird, said the school district operations tax levy with an approved referendum would be $2,634,646, $900,000 more than if the referendum fails. Murn projected an $8.66 operations school tax rate in 2022-23 with an approved referendum. The projection assumes a 10 percent increase in Athens School District value to $328 million. An operations tax rate with a failed referendum would be $5.70 in the same tax year. This projection assumes a two percent increase in school district value to $304 million.
These tax rate projections do not include the impact of a proposed school building referendum.
A second question on the Nov. 8 referendum ballot will ask voters to approve general obligation bonds not to exceed $5,525,000 for capital improvements.
The school district’s plans are to use the capital improvements referendum money to pay for a new Athens High School track and retaining wall in front of the home football bleachers, new Athens Elementary School playground, a new roof and backup generator at Maple Grove Charter School and new upgrades to the CTE (Career and Technical Education) classroom and rooftop HVAC (Heating, Ventilation and Air Conditioning) units in the schools.
Andrea Sheridan, Athens schools superintendent, said she plans to hold community referendum meetings during the weeks of Oct. 17 and Oct. 24 leading up to the Nov. 8 election.
In other news:
n The Athens school board held its regular monthly meeting on Monday, following the budget hearing and annual meeting. School board members voted to appoint Tucker Diethelm as a new school board member to replace Kenny Ellenbecker, who resigned last month to take care of his health and spend more time with his family. Diethelm will take his oath of office at the October school board meeting.
n School board members voted to hire Kaylin Byer as an administrative assistant at Maple Grove Charter School and give school district administration the authority to hire a new paraprofessional at Maple Grove Charter School before the October school board meeting.
