The Oconomowoc Area School District Board members adopted a budget and certified a tax levy resulting in the lowest mill rate in the District’s history. The Fund 10 Operating Budget totals $74.2 million which is supported by a $44.4 million tax levy. The property tax levy is the local portion of State-local funding partnership better known as Revenue Limit Authority. The State is providing funding of $15.9 million through Equalization Aid. The combination of State Equalization Aid and the local property tax account for 81.2% of the District’s overall revenues.
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Equalization Aid
The District’s Revenue Limit Authority benefited this year with a significant increase in State Equalization Aid. The increased Aid provided a favorable result for our community shifting more of the State-local funding partnership to the State, lowering the property tax levy. Historically, this is the greatest amount of Equalization Aid the District has received.
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ESSER Funding
The District continues to rely on federal funding through ESSER grants to balance its operating budget. For 2022-23, ESSER grant claims accounted for $1.3 million in revenue. The budget for 2023-24 utilizes $2.9 million to fund ongoing operations. After this year, the District estimates that $600,000 of ESSER funds will remain. ESSER funds must be fully used by September 2024.
Mill Rate
Overall, the 2023-24 budget increased 3.2% over the 2022-23 budget, but decreased .1% compared with 2022-23 actual results. The mill rate dropped $2.16, from $8.25 to $6.09 per $1000 of equalized property values. A 18.1% increase in property values throughout the District (inclusive of a 2.72% increase due to net new construction) contributed to the District’s historically low mill rate.
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School Levy Tax Credit
For 2024 tax bills, the State provided property tax relief with a funding increase of 27% in the School Levy Tax Credit (SLTC). The SLTC impact results in a larger credit to the school levy on a homeowner’s tax bill, which reduces the school district’s portion of their tax bill. The increased State levy funding significantly reduces OASD’s tax levy burden when compared with 2022-23.
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2022-2023
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2023-2024
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$ Difference
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% Difference
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Total Tax Levy
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$64,971,796.98 |
$56,574,819.11 |
-$8,396,977.87 |
-12.9% |
Tax Levy Credit
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$10,174,797.00 |
$13,373,690.00 |
$3,198,893.00 |
31.4% |
Net Levy
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$54,796,999.98 |
$43,201,129.11 |
-$11,595,870.87 |
-21.2% |
Summary
Each October, the Board must adopt the budget, certify the tax levy, and establish the tax rate after the Department of Revenue determines property values in the District and the State certifies Equalization Aid (it’s portion of educational funding). Tax bills are sent to property owners in December.
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The 2023-24 budget is balanced, while incorporating key initiatives, through careful control of costs and strategic allocation of limited resources. This budget supports the instructional mission of OASD as demonstrated by sustaining these key initiatives:
- Pupil-to-teacher ratios which are appropriate for each grade, and which support a positive environment for learning.
- A Response to Intervention (RTI) system that meets the needs of all learners and decreases the need for referral to special education.
- Intervention time to address learning achievement gaps and maintenance of the RTI facilitator roles at the intermediate level to coordinate math and literacy interventions and build staff capacity.
- Consistent annual funding for curriculum materials, instructional technology, and staff development, all which place OASD among the leading school districts in Wisconsin.
- A technology plan that supports a 1:1 student-to-device ratio in grades 5K through 12 and 5 iPads per classroom in 4K. The technology plan also provides reliable student access and use of mobile technology supported by OASD’s high-speed fiber network and wireless infrastructure.
- Continued support of a student life-ready competencies screener, Life Ready curriculum, and pertinent staff professional development.
- Student mental health and well-being is supported through community partnerships with GALS Institute and Family Services of Waukesha, and a Student and Family Assistance Program (SFAP).
- Student services staffing aligned with a staffing metric that balances caseloads and provides support for students.
- Continued support for Achievement Via Individual Determination (AVID) at OHS.
- Maintenance of a two Alternative Education position at OHS and a coordinator position to lead the Resilient Schools initiative responding to student needs and providing coaching to build staff capacity.
- Continuance of a Dean of Students role at the intermediate schools to work collaboratively with building leaders to ensure all students have opportunities to achieve at high levels academically, socially, and emotionally. The Dean of Students (1) assists with the daily operation of the school with an emphasis on Restorative Justice and Positive Behavioral Interventions and Supports (PBIS); (2) provides leadership and is a resource for the Student Services Team in providing a data-driven Multi-Level System of Support (MLSS); and (3) promotes an inclusive learning community that supports social interaction, active engagement in learning and self-motivation.
- Continued support of the Athletic Strategic plan with an athlete development and student leadership position at OHS, along with an additional leadership course for students.
- A commitment to facility preventative maintenance, renovation, infrastructure improvements, and long-term capital project funding.
- A sustainable educators’ compensation model that provides competitive compensation and attracts and retains OASD’s high-quality certified staff.
- Competitive salaries and benefits for all employee groups.
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Moody’s Investors Service assigned a Aa2 rating to Oconomowoc Area School District, WI’s General Obligation Promissory Notes, Series 2023 with an estimated par amount of $15 million. Moody’s maintains the District’s Aa2 issuer rating along with the Aa2 ratings assigned to previously issued general obligation bonds and notes. The Aa2 rating reflects the District’s strong economic fundamentals including its above average resident incomes and full value per capita. Additionally factored are the District’s stable operations which have led to a build up of healthy available fund balance and liquidity.
Less than 15 districts with Moody’s ratings have a Aaa rating, which is the only rating better than Aa2.
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