Levy up 15 percent

The Brainerd School Board certified its 2010 preliminary levy Monday at nearly $16 million, a 15.1 percent increase from last year.

Steve Lund, director of business services, explained to board members that the increase mostly reflects the district's board-approved OPEB Trust levy, a $2.2 million addition for next year. Without it, the district's annual levy would reflect a .09 percent decrease, Lund said.

Lund said the preliminary levy figures also are based on other factors, including the continuing rise of property market value in the district, the district's debt service and declining enrollment over the last few years.

The district's existing $199 per pupil voter-approved operating levy decreased from $1.6 million to $1.36 million. Lund said the Minnesota Department of Education bases the figure on the district's recent history of declining student enrollment.

Lund said estimated market value for property in the district increased to $5.6 billion in 2008, a 7 percent increase. This was at a slower rate than in other years, which ranged from 10-13 percent in the early to mid-2000s but also reflects a larger increase than the 4 percent statewide average growth of the market value of school district property. Lund said he suspects the district will experience a very small increase, if any, in market value of property in 2009 since it seems this area is lagging about a year behind state trends.

While a 15.1 percent levy increase is higher than last year's levy increase of 5.6 percent, Lund said the district's annual levy has ranged from 15 percent to 18 percent of the district's total budget since 2005. The 2010 preliminary levy reflects 17 percent of the district's total revenues, excluding the OPEB Trust.

He reminded board members that the district's OPEB levy expires in 13 years, as does the district's voter-approved debt service of $6.47 million, which includes the 2003 bond to construct Forestview Middle School and other building remodeling projects.

Seasonal property owners are excluded from paying for voter-approved school operating levies, but all property owners, including seasonal property owners, will be levied for the OPEB Trust.

JODIE TWEED may be reached at jodie.tweed@brainerddispatch.com or 855-5858.