Early estimate shows 60 percent increase to debt service levy

MARTINSVILLE — The Metropolitan School District of Martinsville (MSD) will be raising taxes, the only question that remains is how much.

Last Thursday evening, the school district hosted four back-to-back meetings, finishing with the regularly scheduled board meeting. But the first three were all about tax dollars, including a budget hearing, a bond hearing and an additional appropriation hearing.

Jay Staley, from accounting firm Baker Tilly Municipal Advisors, gave a presentation to the board on the school’s budget, including the need to generate more funding. The proposed 2024 budget sits at $57 million, compared to $51.6 million in 2023 and $47.1 million in 2022.

As part of the 2024 budget, the district is hoping to tackle a number of construction and capital projects that are much needed in the district.

According to Staley, a facility assessment was recently performed that “identified about $95 million in construction needs.”

“And that was if they were bid out and performed this past summer,” he said. “And so, as we know, inflation takes ahold.”

In addition, that number is “just construction costs,” he added. “It’s not the soft costs that go along — the equipment, other things you may need.”

To start tackling the projects on its list, the school district is looking to take out a general obligation (GO) bond for $6.1 million and to raise its debt ceiling to help pay for additional construction projects.

The advertised proposal is to increase the debt service levy from $0.2491 up to $0.3999, an increase of 60.5 percent.

According to Staley, MSD has “the lowest tax rate among your peers” for 2023, behind all public school districts not only in the county but across Central Indiana.

Between its operations and its debt service, MSD combined levy rate sits at $0.6530. Mooresville Schools sits at $0.7874, Eminence Schools is at $0.8961, and Monroe-Gregg School Corp. is at $1.0700.

If MSD approves the maximum levy it has requested, the combined levy would total $0.8038.

By raising the levy, the school district — which is still contending with declining enrollment — will be able to increase its capital funding along with its credit rating, thereby paving the way to take out more capital improvement loans.

The school district published a list of 88 capital projects totaling nearly $23 million it has planned for 2024, which includes more than $10 million in HVAC work alone at 10 different district buildings.

Other big ticket items include $2.2 million for partial roof replacement at Martinsville High, $1.5 million to replace bleachers at the high school and $2 million for roof replacement at John R. Wooden Middle School.

But that leaves more than $70 million in construction and capital needs the school district still has on its radar.

To help prioritize those needs, the district will be forming committees and soliciting community participation in order for the Martinsville community to help shape the future of the district.

The school board will formally adopt its proposed budget on Thursday, Oct. 12, at 7 p.m. at the Central Education Center, 389 E. Jackson St. in Martinsville.

~ By Stephen Crane | Reporter | Published September 28, 2023 in The Morgan County Correspondent