The Waterloo School District recently announced a proposed tax levy for 2024, with a notably larger request compared to last year largely due to the rising cost of labor in education.

A public notice item on page 3C in this week’s issue of the Republic-Times concerns the levy, comparing it to last year’s property taxes extended by the district.

In total, the requested property taxes for 2024 are estimated at $29,097,960. Taxes for 2023 stood at $26,192,850, indicating an increase of 11.09 percent from last year to this year.

As Waterloo Superintendent of Schools Brian Charron pointed out at a public hearing for the district’s tax levy increase last year, 2023 marked the first time since 2019 the district requested an increase in the tax levy greater than 5 percent.

This figure is notable as it pertains to the Property Tax Extension Limitation Law, otherwise known as PTELL, which limits the amount of tax extensions for taxing districts to 4.99 percent, with a larger increase requiring a public hearing.

The $29.1 million levy for 2024 includes $24,244,343 from “corporate and special purpose property taxes to be levied” – increased by 12.3 percent from last year’s $21,588,545 – as well as $4,853,617 “property taxes to be levied for debt service and public building commission leases” – increased by 5.41 percent from last year’s $4,604,305.

As Charron clarified, the former figure represents taxes which are put toward the district’s education, maintenance and various other finds while the latter figure is money put toward repaying bonds sold in the past – chiefly for construction of Waterloo High School.

Charron also offered further context for the increase to the tax levy.

As far as the tax rate is concerned, Charron said the levy would allow that, for every $100 of assessed value, $2.19 goes to the district’s education fund, $0.50 goes to operation and maintenance, $0.20 goes to transportation, $0.05 goes to the working cash fund and $0.05 goes to the health/life safety fund.

He spoke particularly on the education fund, remarking that the district is looking to reach the cap previously set by voters in 2006.

“There’s limits on what we can get, but our rate last year for the ed fund dropped to $2.08, and we would like to get the $2.19 that voters approved,” Charron said.

Further on the tax rate, Charron said the district has taken into consideration the tax rates of neighboring and comparable districts.

He likewise did so at the 2023 tax levy hearing, providing a chart to the audience that placed the district’s then-rate of $4.26 in-line with most other referenced districts whose rates ranged from $3-6.

Charron additionally noted the district’s tax rate has been going down for some time.

When it comes to the need for the sizable tax levy increase, Charron pointed to the cost of labor, a key topic of discussion at several school board meetings this year as the district has sought to stay competitive with other districts regarding educator salaries.

“The biggest thing that we are battling with is the increased cost of labor, whether that is labor from contracts that we’re executing for maintenance and construction projects or the cost of labor with our own employees,” Charron said. “The board has made effort to not lose ground with where our employee compensation is compared to other districts in the area that are like us and, in particular, our neighboring districts.”

Also noteworthy as a cost within the district are a number of substantial projects ranging from ongoing major renovations and additions at W.J. Zahnow Elementary to HVAC and roofing work at several schools, window replacement at Waterloo Junior High School and pavement improvements around the district.

Charron also remarked that the district itself is encountering inflation much like individual citizens are.

A public hearing on this proposed tax levy will take place in the Waterloo High School library on Dec. 16 at 7 p.m., prior to the regular school board meeting.