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EXETER — The Wyoming Area School Board voted to raise property taxes by 3.4 percent this week — the most allowed by the state without asking for an exception or going to voters for permission.
The tax-hike decision was “certainly a step in the right direction,” said the board’s business consultant, Tom Melone.
“Although it will certainly help, it’s not the total solution to the issue,” Melone added.
Wyoming Area used approximately $2 million of its fund balance over the last few years, reducing its reserves from $4.3 million in 2013 to $2.2 million in 2016. The tax increase — to 15.9367 mills for Luzerne County properties and 78.1897 mills for Wyoming County landowners— will generate an estimated $484,000 in revenue.
The extra money will help the district meet its financial obligations, officials say. Due to debt refinancing and lower interest rates from 2014 to 2017, Wyoming Area was able to save on debt repayment. But in 2018-19, that obligation will jump approximately $903,000, to a $1.8 million payment.
“We have a huge jump in our debt service schedule, so we’ll be putting our efforts toward making funds available to help meet those requirements,” Melone said. “The challenge next year is try to keep track of expenditures and make sure we have sufficient revenues to offset that.”
The board voted unanimously on the $34.86 million budget.
Melone also said the district operated in “a very positive way” during the 2016-17 school year, saying it began to “turn the tide a little.”
In an effort to continue that trend, the district is purchasing supplies on an as-needed basis.
“We’ve also been able to reduce bid amounts because we’re trying to minimize the inventory available at the district,” Melone said after board member Carl Yorina noted a nearly $10,000 drop in total cost of supply bids for 2017-18.
In other business:
• There will be no increase in the price of school meals during the upcoming school year. Breakfast for elementary school students will cost $1.40, and lunch will cost $2.25. Breakfast for secondary school students will cost $1.55, and lunch will be $2.50.
