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The Cape Henlopen school board voted Thursday, July 10, to lower two tax rates for a combined decrease of 12 cents for each $100 of assessed property value. The average district resident can expect to save $21 each year, said Oliver Gumbs, director of business operations. The total tax rate is now $2.877 per $100 of assessed property value, he said.
Gumbs recommended the school board decrease the tuition tax rate by eight cents and the debt service tax rate by four cents. The tuition tax account has a carryover of $4.3 million.
The debt service tax rate is higher than necessary to pay principal and interest on the district’s construction debts.
The school district went to referendum in June to transfer eight cents of the debt service tax rate into current operations to help offset state funding cuts and to use $1.6 million of already-collected debt service money to build a second artificial turf field. Both changes were defeated by voters. Gumbs told school board members the adjustment they chose would give the board the option to return once again to referendum in the upcoming year. He said he could only offer the option for a year before the district would risk a finding from the state Auditor’s Office.
School board members cited the failed referendum as a reason to lower the tax rate.
Board member Gary Wray said, “The community expects a decrease. They voted for one. To not do it would be irresponsible.” Conlon said the public had voted to have the tax rate lowered and the board should follow the wishes of the public.
Board members Spencer Brittingham and Noble Prettyman and board president Esthelda Parker Selby said the board should return to referendum. Prettyman said if another referendum is held, the questions need to be concise and clearly delineate where money will be spent. Brittingham said he is optimistic the next referendum will be better understood and will pass. The board has previously blamed the failure of the referendum on complicated questions and uncertainty on the part of the public of where money will be spent.
Gumbs said if the board holds another referendum and it fails, he will recommend a further reduced debt service tax rate. Tuition tax is set by the school board each year, depending on the number of special needs students the district anticipates it will have. The debt service tax rate can be increased only by referendum.
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