Taxpayers can comment on proposed tax rate for NCSD on March 24

Taxpayers will get to tell the Newton school board what they think of the possible fiscal year 2026 levy rates at an upcoming public hearing. Elected officials on Feb. 24 voted to set the public hearing date on March 24 for the proposed tax levy for next school year’s budget. The overall tax levy is the same from last year.

Tim Bloom, director of business services, explained many of the fiscal year 2026 budget details last week during the school board meeting. Bloom also explained that this specific public hearing will cover the levy rates and not the budget itself. The rates are what taxpayers will pay. The budget is what those taxes pay for.

“You get to have two public hearings: One for the tax rate and then one for the certified budget,” Bloom said. “…This one is anticipating the governor signs a 2 percent increase for SSA. This keeps our tax rate at the same. If you look at the overall rate it’s $15.86114. That was our rate from the year before.”

The school district’s debt service levy revenue is increasing from about $2,612,000 to $2,639,000. The major increase to the district’s fiscal year 2026 budget is the voter-approved PPEL levy, which increased from $0.67 to $1.34. Which means the district is taking in $1.4 million as opposed to more than $714,000 last year.

Of note, the amount levied from the instructional support levy is increasing from $47,673 to $357,193.

However, the general fund levy revenue for the Newton Community School District is actually decreasing. Instead of taking in $9.8 million, the district will have $9.1 million to work with in fiscal year 2026. Bloom said the school’s balance should have full reserves and rainy day funds.

According to school board documents, the percent change in property taxes for residential properties with an actual/assessed value of $100,000/$110,000 is more than 12 percent; for commercial properties with an actual/assessed value of $300,000/$330,000, the change is 14 percent.

Bloom explained the rollback — a factor he said is often forgotten about — has attributed to this percent change.

“You don’t pay 100 percent property taxes on your property,” he said. “It’s rolled back a percentage, so it’s really about 50 percent. Also, the proposed tax is assuming a 10 percent increase in values. I’m not sure all your houses went up 10 percent in value, but (the district’s) overall tax valuation went up 1.32 percent.”

Other options that the school board entertained from staff were much higher proposals, including one with a $16.97 total tax rate and another with a $17.87 total tax rate. Bloom recommended the school board approve the first option of approximately $15.86. The board voted unanimously in favor of the first levy rate.

“I would like to be reasonable,” Bloom said.