Part of the months-long process of crafting an annual budget for the Solon Community School District (SCSD) involves setting the property tax rate (levy), a set amount per $1,000 of taxable valuation. Recently property owners received a statement from Johnson County, detailing their upcoming property tax obligations, that left many confused. State law requires school districts to send a statement with the property tax rate and the district’s “asking” of the taxpayer. In addition 1,500 families (of students enrolled in the SCSD) received a letter seeking to clarify the statement.
For the new fiscal year (FY26), which begins on July 1, the SCSD is proposing a maximum property tax levy of $16.25 per $1,000 of taxable valuation, a three-cent increase over last year. The letter states last year’s published rate (ahead of the FY25 budget being finalized) was $16.28 with an actual levy of $16.22 per $1k of taxable valuation.
A public hearing is also required, which was held Thursday, March 27 in the district’s administrative offices with three residents in attendance.
District Superintendent Davis Eidahl gave a little historical reference to open the hearing.
“Going back ten years, in 2015, the district passed a general obligation bond for $25 million to build the middle school and to build the Center for Fine Arts (CFA). At that time, the property tax levy was $16.35 per $1,000. Our goal has been, with the community overwhelmingly supporting that bond, to keep our tax rate there or below, and not exceed that $16.35.” Over the past decade the levy rate has fluctuated but has not exceeded the $16.35, he said. “I think we are committed to keeping our rate below the 2015 rate.”
The Board fielded a question from a resident asking why the levy was going to increase when property assessments (valuations) continue to increase, which means more dollars for the district even without an increase in the levy.
Board Vice President Adam Haluska responded, saying, “I live in this community, I get it. It is at the forefront when we’re doing budgets. Everything’s gone up. Our whole thing is how do we keep this thing steady or level and not ask for more. How do we run a tight ship and make sure we’re not just increasing to increase. Since I’ve been on that’s been a staple that we’ve got to keep this thing (levy) down and in-check.” Haluska pointed out the school board has no control over property tax valuations, which have increased as much as 35% in recent years in some cases.
The resident asked why the Board needs to increase the levy in recognition of the steep increases in property taxes and proposed leaving the rate the same or lowering it to keep the amount closer to what property owners have been paying.
“This is the first time since I’ve been on the Board that property taxes have increased this much between this year and last year,” said Board member Dan Coons. “For our budget, just like for you, gas costs more, our transportation costs more, all these things cost more.” The past year has been problematic for the Board, Coons said.
“Property taxes didn’t creep up, they jumped up, and so we’re trying to navigate this also and brought up a really good point that I hadn’t considered.”
Coons added the state provides funding per pupil based on last October’s certified enrollment. Coons noted the district’s enrollment has remained steady even with all of the building taking place.
“It’s coming though,” said Haluska. “We’ve got to have the infrastructure in-place for when we do have more and more families coming in. We don’t want to have classrooms bursting at the seams or we don’t have enough places for them, so that was part of getting the SIS (Solon Intermediate School) building and getting some of the stuff with the middle school and even the Lakeview (elementary) improvements. It’s been steady but we know it’s (enrollment growth) coming, so to be prepared for that, budget-wise, we try to put plans together three-five-ten years ahead…what’s it going to look like?” He noted unlike many communities that are seeing enrollment declines or are stagnant, Solon is and will continue to grow.
Coons also noted legislation in the past year that increases teacher pay including higher salaries for new teachers starting out.
“That also impacts us,” he said, “So things we didn’t have before, that’s a new expense for us so that has to go into our budget as well.”
While the state provided extra dollars to go toward teacher salaries, the district is waiting for the legislature to pass their budget, and announce what increase, if any, there will be in the State Supplemental Aid this year. Typically school districts certify their budget with varying degrees of optimism or pessimism as to what the SSA will be. A 0% increase, for example, means districts will receive the same amount per pupil, based on last October’s enrollment numbers, that they did last year. A 2-1/2% increase is 2-1/2% more than the previous year, etc., etc. However the district likely won’t know for sure what the amount will be until after certifying the budget.
Coons told the resident, “You brought up valid points, I’m glad you came. This is why we want public input because we are hired to think about these things in support of the school, but also the community, and we let the community have a voice to say things like this for us to go, ‘Oh,’ and then have Pat Moore (District Finance Officer) look at it.”
“It is a concern,” said Haluska. “I’ve been on the board for nine years, it is a point of contention, and we understand Johnson County, we’re all experiencing the same things.” Much like how the Board doesn’t know what the SSA amount will be until the state tells them, so it also is for how much Johnson County is going to raise property valuations.
“We don’t know what the County’s going to do until they do it,” he said, “And it’s the same way with the State. We’re playing behind the eight ball.”