BY JILL TATGE-ROZELL
jrozell@kenoshanews.com

WHEATLAND — Residents of the Wheatland Center School District approved a 3.7 percent increase in the tax levy Tuesday night, though it could be increased further if voters approve a referendum later this month to exceed the state revenue cap.

The 2009-10 levy presented at the annual meeting is up $105,446, from $2,873,235 to $2,978,681. It is made up of $2,582,260 to support general operations, $376,321 to retire building referendum debt and $20,000 to support the community service fund.

The corresponding tax rate is estimated to be $6.73 per $1,000 of equalized property value. Given this, the taxes on a $200,000 home would be $1,346.

“If the referendum passes (on Oct. 27) the levy can change,” said board president Chris Serak.

If voters allow the district to exceed the revenue cap by $300,000, the levy will increase by that amount. This would change the estimated tax rate to $7.40 per $1,000 of value, and the taxes on a $200,000 would then be $1,480.

The levy will support general fund expenditures of $5,645,400, which the board managed to trim by $41,960, from $5,687,360 this year.

Estimated revenues are anticipated to be $5,257,161, and the district will use $388,239 from its fund balance under the budget presented Tuesday to cover the difference between revenues and expenditures.

This will leave the district’s fund balance, which it worked to re-establish by exceeding the revenue cap for the last several years, at an estimated $125,205.

“That is totally not acceptable,” interim administrator Conrad Chaffee said, adding that is why it is so important the community continue to allow the district to exceed the revenue limit.

Chaffee said the main reason the district must dip into its fund balance is a decrease in state aid. State aid is projected to fall $88,010, or 3.8 percent, from $2,293,045 to $2,205,035.

“This fiscal year the state will again reduce general state aids as it tries to deal with its own financial problems,” Chaffee said. “This will force school districts across the state to reduce costs, use portions of fund balances and conduct referendums.”

Open enrollment out of the district is also having a negative effect. Ninety-five students living in the district are attending other schools, while only 19 from outside the district are at Wheatland. This corresponds with a loss of $612,085 and a gain of $122,417, or a total net loss of $489,668.

“It is our goal to reverse that,” said Serak.

Board member Kandi Horton said most of the students who attend other schools have never been at Wheatland — i.e., families who have moved into the district but have kept their children in the schools where they started.