By a nearly 2-1 vote, voters in the Eden Valley-Watkins school district approved a property tax increase to maintain staffing and programs in the EV-W schools.
Specifically, the YES vote revokes the current levy of $82.75 per student and replaces it with a $460 per student levy, to take effect this year for taxes payable in 2024. The levy will remain in place for 10 years, unless revoked, and is subject to annual increase at the rate of inflation. The anticipated tax impact to homeowners is $14.25/month for a home valued at $250,000.
This same referendum came up for a vote one year ago, and it was defeated by an 819-to-1,216 vote, about 40/60% for/against. The school board went back to the drawing board; they worked for months to come to the same proposed request for $460 per student going forward. This year, it passed by a 729-365 vote. (The much larger voter turnout in 2022 was likely due to that being a general election year. And it should be noted that all early and absentee votes were included in the count released on election night.)
For years, the EV-W school district has maintained a healthy “fund balance,” money kept in reserve for if and when it’s needed. This has been a high priority for EV-W, especially having seen Kimball go into Statutory Operating Debt twice in recent years; this is when the fund balance is lower than the state requires, so the state steps in and makes painful financial decisions for the district until the fund balance is rebuilt to their satisfaction. After failure to pass the operating referendum last year, the EV-W district has had to dip into its fund balance to pay its fixed expenses, many of which are highly inflated this year. Had this year’s referendum failed again, the district would further spend from its fund balance for essential programs – putting the district in a precarious position financially – and make cuts to non–essential programs.
Unlike other government entities, only school districts are required to put tax increases to a vote. Nearly all of the 331 school districts in Minnesota have an operating levy, to bridge the widening gap between state funding and fixed expenditures. The average operating levy for school districts in Minnesota for 2023-24 is $1,031.
It should also be made clear that none of the funds from this operating levy (or any other school funds) is going toward a proposed new athletic complex which is a totally private, donation-based venture now in its second year.