Otsego to try for 5-year income tax

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TONTOGANY – Otsego Local Schools will be back on the ballot asking for support for an income tax.

The district in March will ask voters to support a five-year 0.50% income tax.

A similar request, except it was for a continuing term, failed in November by 145 votes.

The new plan is to keep it simple and use more methods to communicate.

“We need to get more information out there and be more specific about where the funds are going,” said Superintendent Kevin O’Shea at Monday’s special board meeting.

He said levy supporters are going to need to knock on doors and put a flier in everyone’s hand.

Board member Jamie Harter agreed.

When you take the time to go door to door, it hits home, he said.

O’Shea said the Otsego Citizens Support Committee put out a survey on Friday, and as of the Monday night meeting, 115 responses had been received.

He said the major concerns were about transparency – that the levy had been introduced without adequate public awareness — and affordability.

Many suggestions included improving communication strategies, such as providing more information in advance, clearer explanations of the levy’s purpose, and holding more public meetings with sufficient notice, according to survey results.

Suggestion were made for ways to increase revenues including changes in transportation, higher fees for extracurriculars and athletics and exploring a property tax.

Board President Brad Anderson said discussing a property tax is a non-starter.

Ways to decrease expenses included the reduction of extracurriculars with a focus on athletics and music, cutting staff and field trips and restricting building access (and charging fees for usage).

The consensus was that diverse communications methods, early engagement and detailed information is crucial, O’Shea said.

“It’s important to hear the criticism and address it,” he said.

Sixty-six percent of respondents have children in the district, 92% owned single-family home and 13% owned farmland.

“This was a good starting point to hear some of this feedback,” O’Shea said about the survey.

He suggested the district set benchmarks at 90 days before the election, 60 days and 30 days.

He explained the law does not allow him to be out in the community promoting a levy and warned that employees and board members also cannot voice support while on the clock.

“We can only present factual information,” he said.

Harter suggested O’Shea explain the law in his newsletter and added there needs to be more information on the importance of what the levy would have done for the district.

He said the confusion surrounding this levy was concerning.

“We thought we made it clear … but it wasn’t always interpreted to being clear,” he said.

Anderson said he heard comments on everything that was mentioned in the survey.

“We have the responsibility for getting the information out there,” he said. “There’s also the responsibility of others to be informed.”

There also was concern about a lifelong commitment to a continuing tax, O’Shea said.

The consensus of the board was to ask for a five-year income tax and then reevaluate where the district is.

Board member Gordon Digby pointed out the Nexus pipeline lawsuits have not been settled, there is a proposed solar farm in Weston, and state funding may change.

“This does show we’re acknowledging those things could happen,” Anderson said, and added the bond issues for the high school and elementary will be paid off in the next decade, meaning savings for property owners.

The need has not gone away.

“It’s been good, why isn’t it good now?” is a question Anderson said he has heard.

Expenses continue to outpace revenues. Without the extra income, the district will continue to spend more than it takes in for each of the next five years and is expected to reduce its unreserved cash balance to $1.115 million at the end of fiscal year 2028.

Board member Jessica Mehl said a lot of people have moved into the district since the last request for funding, which was an income tax in 2002.

The last property tax request was in 1987.

Mehl said having a five-year request gives the board the opportunity to prove its fiscal responsibility.

The 0.50% income tax will appear on the March 19 presidential primary election. If it passes, taxes won’t be collected until January 2025.

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