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Monroe Treasurer Explains 20-Mil Floor, Moving Funds
Thursday, February 17, 2011 3:13:04 PM - Monroe Ohio

John MacDonald and Kelley Thorpe

Photo: School Board Member John MacDonald listens while Treasurer Kelley Thorpe addresses the board.

by John Beagle

Continuing this conversation on Inside Millage and Permanent Improvement fund with Monroe Local Schools Treasurer Kelley Thorpe. 

Beagle: How do we end up with more money by moving funds?

Thorpe: We don’t initially see any additional revenue because we are above the 20-mill floor. The funds generated by the moved millage would be diverted from the general fund to the permanent improvement fund. There would not be any additional revenue or tax increases– at first. Monroe is currently at 21.03 effective mills. As property values increase, millage rates rollback. No additional money is earned by a district each year, because the rates are rolled back to generate the same dollars. However, the rates are not allowed to move beyond the 20-mill floor. Once a district rolls back to 20 mills, they start to collect additional revenue as property values increase because they can’t roll back any further.

When property values begin to climb again, we will see the additional money. By moving 1.03 mills from general fund to the PI fund, this immediately drops us to the 20-mill floor. We won’t have to wait to rollback to it. We are assuming that property values are going to begin to climb again and we will then see additional revenue – both in our general fund because we will be at the floor and in the new PI fund because of the moved mills.

Assuming that property values do regain their values, Monroe is so close to the floor that we would have hit the floor again anyway. We were on the floor before the values dropped 2 years ago. Dr. Lolli and I met with a resident this week who told us the school portion of his tax bill dropped by $200 last year and another $65 drop this year. By moving these mills, we are simply speeding up the process and taking advantage of this opportunity to establish a PI fund to help with debt payments, technology needs, and other permanent improvement needs.

The board is committed to serving the needs of Monroe’s children without overburdening the taxpayers of Monroe. We see this move as a means of delaying the need for additional levies.

Other related:

A Monroe Levy Discussion with School Treasurer Kelley Thorpe
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