Collier County School Board approves $1.16 billion budget, higher property tax rate

Collier County School Board members voted Tuesday to approve this year's $1.16 billion budget and a higher property tax rate. 

Board members voted unanimously to tentatively accept the proposed budget, up from last year's $1.093 billion budget.

The board approved raising its overall property tax rate to $5.0830 per every $1,000 of assessed property value, from $5.049 per $1,000 in 2018-19.

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All board members voted in favor of the proposed budget and property tax rate although the board will vote again on a final version of the budget in September.

The $5.0830 millage rate exceeds the roll-back rate, or a property tax rate as it changes from year to year, by 4.57 percent, so the district has a tax increase. 

"Just keep in mind when you look at a big budget like that, that's not necessarily revenue for the year," Bob Spencer, head of financial services for the school district, said during his presentation to the board. 

The rate includes the required local effort under state law, 2.8350, discretionary millage, 0.7480 and the capital improvement tax, 1.5000.

Spencer discussed property taxes for a typical home valued at $400,000.

A home with a homestead exemption will pay $1,944 in taxes this year. A difference of about $51 from last year due to a projected property value increase.

A home without a homestead exemption will pay $2,126 in taxes this year, about $106 more taxes than last year. 

The district's property taxes would generate proceeds of about $477.8 million.

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Six main factors make up the district's proposed budget. The general fund, which is the largest portion at $585 million, goes to everyday operations like teachers and school buses. 

Teacher salaries are still in negotiations, according to the district, and nothing is finalized yet. 

Debt service, special revenues and nutrition services fill up similar cuts of the proposed budget. Nutrition services' section is combined from federal funds and some portions of parent and student payments.

Internal services funds cover the district's health insurance for employees, the workers' compensation plan and other benefit plans. 

Board chair Roy Terry asked Spencer about the district paying off its debts early.

"In the earlier years, we were very aggressive, we paid off some debt early which I don't think any other school district had done," Spencer said. "At this point in time, they are not callable bonds."

A callable bond is a bond an issuer may redeem before it reaches the stated maturity date.

The district put into effect a plan to be debt-free by 2026, Spencer said the district is still on track. 

The budget also includes a capital projects section that goes towards maintenance, building and renovation costs.

"We are trying to save to build a new school, so we are holding onto some money in our capital funds to do that with," Spencer said.

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The district's new high school, set to open in 2023, will be built through funds from saved impact fees, Spencer said. 

Spencer said building the high school could approach a $100 million mark, so budget capacity for purchase orders is necessary. During the school's construction, Spencer said the capital funds will go down.

Collier's student budget amount breaks down to $15,055 per student after redundancies are factored out of the equation, Spencer said.