HISD holds line on tax rate

A public hearing for the Hedley Independent School District lasted for nearly an hour Monday night as school trustees debated the need to raise the tax rate by one penny.
Enterprise publisher Roger Estlack, the only member of the public at the meeting, asked some basic questions about the school’s proposed 2010-2011 budget, which Superintendent Eric Hough said totaled $1.679 million compared to $1.767 million for the current budget.

“It’s about a five percent decrease, and we’ve decreased almost everything, particularly payroll,” Hough said.

The overall budget was projected to have a $17,643 surplus, but that included revenue from a proposed increase in the debt portion of the school’s tax rate from $0.06 to $0.07 per $100 valuation.

“If we leave the tax rate the same, we will be about $9,000 short in making our bond payment and will have to take that money from our fund balance,” Hough said.
Trustee Tonja Ruthardt expressed concern about raising the tax rate.

“I think these little old people in Hedley are about taxed out,” she said.

“I understand that it’s tough economically, but it’s tough for the school, too,” Hough said, noting that people over the age of 65 can have their taxes frozen.

Trustee Lana Ritchie said she felt the community had voted for the bond issue several years ago and would understand the need to pay for it, but Trustee James Edward Potts raised concerns about the current economy and said that a tax increase would offend some of the district’s largest taxpayers to the extent that they might not donate to school fundraisers.

“I’d rather have to raise it two cents next year than one cent this year,” Potts said.

After the board closed its public hearing and moved into an open session, Ritchie moved to set the tax rate at $1.11 per $100 valuation with $1.04 for maintenance and operations and a debt rate of $0.07. Her motion died for lack of a second.

Ruthardt then moved to maintain the current tax rate of $1.10 with $1.04 for maintenance and operations and a debt rate of $0.06. She, Potts, Karen Watt, and Bonnie Brown voted for the measure; and Ritchie and Ted Wright abstained.

In other school business, the board approved the 2010-2011 budget and authorized amendments to the 2009-2010 budget. Trustees also gave approval to a human sexuality education program, “The Truth Straight Up,” that is free to the school and which parents will be given the option to allow their kids to attend.

In his superintendent’s report, Hough said Hedley’s enrollment stands at about 130 students and he said $8,500 had been raised from two private donors for a new basketball scoreboard.