Residents Weigh In on Tax Rates as Deadline Nears

Three times in the last four years, the Kirkwood School Board has set the residential tax rate for the district lower than the voter-approved limit. This year, the board of education may make changes and choose to adopt the highest permissible tax rate in the district.

In a presentation by Interim Chief Financial Officer Mike Romay, the board of education saw three separate options for the upcoming Oct. 1 deadline to establish the tax rates for the 2011-12 school year.

Although the official vote on tax rates does not take place until 5 p.m. Monday, district officials wanted to hold public meetings to gauge responses from local residents.

The Kirkwood district saw an overall drop in assessed property value (commercial and residential) of nearly 3 percent, which represents a loss of more than $32 million in property value for the entire district. In response, Romay drafted three possible scenarios for the upcoming tax rate.

The first scenario, which Romay told Kirkwood Patch would be the most fiscally responsible, would increase tax rates to the voter-approved maximum. This increase would add approximately 10 cents per $100 in residential property tax, as well as a 33-cent increase in commercial property taxes.

"Scenario No. 1 is revenue neutral," Romay said. "We can account for the loss in value by asking the residents of Kirkwood to pay the maximum allowable tax rate for this year, which is something we haven't asked of them in the past few years."

Romay warned that not increasing the tax rate, or allowing it to remain at current levels, would only force the school district to ask for an increased tax rate within a few years to account for the difference.

"If we are responsible now in raising the taxes slightly and being diligent in making cuts, we can have a district that isn't financially strapped or losing major resources," Romay said.

The second scenario represents a smaller increase in the tax rates. The second scenario would raise rates, but by roughly 50 percent of Romay's first scenario (approximately a 5-cent increase in residential property and 16 cents for commercial). This plan would result in a district loss of about $600,000 and would require spending cuts.

The final scenario Romay presented offers no change, and keeps all tax rates identical to 2010 levels. This rate could cost the district more than $1 million in operating funds, according to information gathered by Romay. The 2010 residential tax rate in Kirkwood ranks the 13th highest among St. Louis County's 22 public school districts with a levy of about $4.19 per $100 assessed value. The 2010 commercial tax rate in Kirkwood is about $5.07 per $100 assessed value. 

Director of Community Relations and Development Ginger Fletcher said the tax rate increase proposed by Romay was to account for the overall loss of property value in the area and would not give the district a larger budget.

"We were very aggressive in making cuts last year," Flecther said. "We cut $2 million from our operating budget last year in anticipation for harder times, and because we have kept the taxes low, we have the option of a small increase now to account for the budget constraints, rather than have to cut services first."

But several in attendance were unwilling to accept tax rate increases as a necessary evil. Resident and district parent Patricia Sinclair addressed the board during public comments.

"As a residential property owner, I know the burden is on me, and I'd like to know how the money is being spent," Sinclair said. "If you want us to sacrifice and give more to this great district, then you have to show us how you're spending the money, and you have to make tough sacrifices as well."

Some residents, such as Tom Haenni, spoke out against further increases.

"Kirkwood had one of the lowest value decreases in terms of property in the whole county," Haenni said. "Comparatively, we took a pretty small hit with out value, so I have to wonder why it is suddenly prudent to raise taxes, particularly at a time in which people are more strapped financially, less stable and have less buying power. We have to curb deficit spending and make some difficult cuts before we can ask our business owners and parents to shoulder an even bigger burden."

But not all of the residents in attendance spoke against possible tax rate increases. Chester Gloyd of Kirkwood welcomed the rate increases.

"I know that the school budget, as well as all of our expenditures, are available online," Gloyd said. "So those in the audience should be sure to look for those things before they say the district is hiding its expenses. I think if we want good schools, schools that excel, then we pay the price, and I support the increase. It's tough for me, it's tough for you, (it) doesn't need to be tough for the kids as well."

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