TONTOGANY - The income tax proposal that the Otsego Local Schools Board of Education will put before voters this autumn will be decided in July.
The board was informed at its meeting on Wednesday that two resolutions declaring the need for an income tax would be available at its subsequent meeting.
In order to ascertain the rate of collection for between $1.95 million and $2 million, board member Mark Tolles suggested submitting a resolution of necessity.
Tolles predicted that it would be 0.50%.
In November, Otsego may ask voters to approve between a 0.50% or 0.75% income tax.
The board had previously asked for a $2.97 million resolution of necessity.
Treasurer Steve Carroll said the amount will be generated by an income tax of 0.788%, in accordance with the department of taxes.
According to him, that rounds down to 0.75% and would be 9.1 mills if the district chose to levy a property tax.
Carroll estimated that the 0.50% tax would bring in $1.95 million.
At the following meeting, when the board chooses whatever interest rate it intends to pursue, that sum will be confirmed.
The gathering is set to start at 6 p.m. on July 31.
It was filed on August 9.
Without the additional revenue, the district will continue to spend more than it collects over the course of the following five years, and at the conclusion of fiscal year 2027, it is anticipated that its unreserved cash balance will be $2.51 million.
$2.97 million is required for the district to continue operating profitably.
The district last put a new operating budget before voters in 2002 while levying a 1% income tax.
The district has placed levies on the ballot three times in the last ten years, only to have them removed when more money became available. Carroll noted that once, after a property tax revaluation, Nexus moved to the area, followed by the COVID grants.
A recurring income tax would be requested by the district.
The board decided on the meal rates for 2023–2024 in other business.
At the primary school, student meals will cost $3 for lunch and $1.50 for breakfast.
Students at the high school will pay $2 for breakfast and $3.25 for lunch.
Adult meals will cost $2.50 for breakfast and $4.25 for lunch.
A la carte entrees at the elementary school will cost $2.50, the high school $3, and milk will cost 50 cents each.
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