Tax vote: A cost . .or an investment?

This article (and the photograph) was written by Mntezuma resident Keith Brake and can be found at http://www.clownsiniowa.com/:

Tax vote: A cost . .or an investment?

How much will the $11.5 million Montezuma school remodeling project cost you as an individual?

And would the project drive up the cost of educating our students to difficult-to-maintain levels?

An answer to the second question first, because it's simple. It comes from school superintendent Dave Versteeg, who says the cost to educate per pupil will not be impacted. He said that is because a district's indebtedness is kept separate from the cost of educating students when compiling the cost-per-pupil figures.

Versteeg notes that according to the the Iowa Association of School Boards web site, the fiscal year 2010 cost per pupil in Montezuma and neighboring districts was:

$5,768 for Montezuma;
$5,935 for North Mahaska;
$5,768 for Lynnville-Sully;
$5,783 for BGM;
$5,791 for Grinnell-Newburg.

The question of taxes is more involved. But the total tax rate won't double, or go up by one-third, as has been speculated by some in the community.
At a maximum increase of $4.05 per $1,000 of assessed valuation for the school's asking, the increase on your total tax bill would be about 13 percent. While substantial, it's not a doubling, or a one-third increase.

Versteeg issued figures based on a property tax calculator on the school's web site. And, if you go to the school's web site and plug in your assessed valuation numbers, you can get a calculation of your cost increases. The web site is www.montezuma.k12.ia.us. Then, go across the top to the right to "bond issue," then on the screen that pops up, you'll find a line for the caluclator.

The estimate you will receive is the impact the proposed school increase would have on your total tax bill. If you need help with your own numbers, you can contact the assessor or auditor's office.
For residential property assesssed at $81,950, the increase on an annual basis would be $136, or 11.9 percent.
For residential property assessed at $107,880, the increase on an annual basis would be $185, or 13.6 percent.

For residential property assessed at $150,050, the increase on an annual basis would be $265, or 13.3 percent.
What about commercial property?

And what about agricultural property?

If the issue is passed, the increase would range between $2.80 and $4.05 per $1,000 of assessed valuation.
Let's start with the maximum possible: a $4.05 increase, then go to the minimum: $2.80.

Agricutural Property
Increase per acre: $3.44 a year. @$2.80: $2.38
Monthly - 29 cents an acre. @$2.80: 20 cents a month
Daily - Less than one cent per acre at $4.05 and at $2.80.


Commercial Property
Assessed valuation $10,000.
Increased cost per year: $40.50. @$2.80: $28.00.
Per month: $3.38. @$2.80: $2.33.
Per day: 11 cents. @$2.80:8 cents.

Assessed valuation $50,000.
Increased cost per year: $202.50. @$2.80: $140.00.
Per month: $16.88. @$2.80: $11.67.
Per day: 55 cents. @2.80: 38 cents.

Assessed valuation $100,000
Increased cost per year: $405.00. @$2.80: $280.00.
Per month: $33.75. @$2.80: 23.33.
Per day: $1.11. @2.80: 77 cents.

Assessed valuation $200,000
Increased cost per year: $810.00. @2.80: $560.00.
Per month: $67.50. @$2.80: $46.67.
Per day: $2.22. @2.80: $1.53.

Assessed valuation $1 million
Increased cost per year: $4,050.00. @$2.80: $2,800.00.
Per month: $337.50. @$2.80: $233.33.
Per day: $11.10. @$2.80: $7.67.

Residential Property
Assessed valuation $75,000
Increased cost per year: $122.84. @$2.80: $84.93.
Per month: $10.24. @$2.80: $2.33.
Per day: 34 cents. @$2.80: 23 cents.

Assessed valuation $100,000
Increased cost per year: $170.34. @$2.80: $117.77.
Per month: $14.20. @$2.80: $9.81.
Per day: 47 cents. @$2.80: 32 cents.

Assessed valuation: $150,000
Increased cost per year: $265.33. @$2.80: $183.44.
Per month: $22.11. @$2.80: $15.29.
Per day: 73 cents. @$2.80: 50 cents.

Assessed valuation: $200,000
Increased cost per year: $360.32. @$2.80: $249.11.
Per month: $30.03. @$2.80: $20.76.
Per day: 99 cents. @$2.80: 68 cents.

Assessed valuation: $400,000
Increased cost per year: $740.29. @$2.80: $511.81.
Per month: $61.69. @$2.80: $42.65.
Per day: $2.03. @$2.80: $1.40.

To break it down into even simpler terms, if you own a home assessed at $100,000, and the levy comes in at the maximum of $4.05, your daily increase would be 47 cents a day . . . less than what you might spend on a fresh cup of coffee.

To get up to a $1 a day increase, ($365 a year) you would have to own residential property assessed at $202,465.

"Our school boards, including this one, have been fiscally responsible," Versteeg said. "We have a very low per pupil cost and property tax rates compared to our neighbors."

"Our school building has to be competitive with neighboring schools in order to attract new families," Versteeg said. "New families are not only good for the school's enrollment, but good for the community in terms of business and so forth," he added.

Versteeg encouraged that residents look at the issue as "an investment in our community and in our own property values. It's time to say, 'yes.'"