$113M budget will raise taxes 2.6%

SOUTH COVENTRY » The Owen J. Roberts School Board Monday unanimously adopted a $113 million budget for the 2020-21 school year that will raise property taxes by 2.6%.

The tax rate will increase by .8308 mills from 31.9550 mills to 32.7858 mills.

The average assessed value of the district’s residential properties is $184,318. Based on this average, tax bills will increase by $153 from $5,890 to $6,043, according to the budget text.

According to the budget, for the last five years Owen J. Roberts has raised taxes by the maximum allowed by the state and, in two of those years, more than the maximum, using “exceptions” for higher tax rates written into the Act 1 law.

Board member Paul Friel, who head’s the school board’s finance committee, said the district “adapted quickly to a new economic reality in 2020” with the coronavirus pandemic’s undermining of local tax revenues — creating a $2.5 million deficit.

Local funds provide more than 78 percent of all revenues to fund the budget.

In fact, he said, the budget is most likely to face a deficit for the next three years.

“We believe the most significant economic impacts most likely will be felt next year,” said Friel.

That’s why some of the savings the district enjoyed as a result of schools being shut down due to the pandemic “will be used to make up for the shortfalls over the next three years.”

Even so, the finance committee and ultimately the board cut $3.1 million of proposed spending in an effort to balance the budget, said Friel.

The capital budget was also cut with the exception of the $2 million needed to replace the failed HVAC system at Owen J. Roberts High School.

“Other nearby districts are taking a shorter-term view, cutting programs and staff to keep from raising taxes, but we think that will make things worse next year,” said Friel.

Raising taxes in the coming budget “is the most prudent path forward due to the uncertainty of local revenues,” Friel said.

“We will begin immediately to budget for the next year,” he said, noting “we look to set zero tax increase as a base for next year.”

One positive of the pandemic is historically low interest rates, which is why the board also voted to refinance as much as $65 million in debt that will save $110,000 in the coming year and $1.7 million over the course of the bonds, he said.

The vote came amidst a three-hour meeting that had a full agenda and more than 600 people attending online.

Several of those had a few thoughts to share on the budget.

“How can other local districts manage to have a zero percent tax increase when we’ve had an increase for the past five years?” asked Brian Budd of East Coventry.

“The budget and taxes have gone up every year since 2014,” observed Lori Hernandez Anaaldama of West Vincent. “It doesn’t seem sustainable, especially in these times.”

“Built into this budget are the salaries of numerous over-paid administrators who should be removed from their jobs starting with Dr. Lloyd,” said Cynthia Zoccali of East Vincent.

“Five years in a row, taxes have gone up,” said Hesham Osman. “Does the district have a long-term plan to reduce these tax hikes?”

But not everyone opposed the budget.

“I appreciate the board making the decision to get ahead of it now, and choosing to do this over cutting teachers or programs,” said Erin Marcellus of North Coventry.