Loveland - August 18, 2011

The Thompson School District Board of Education voted 6-0 last night to place a Mill Levy Tax Override (property tax increase) of
$12.8 million on November’s ballot.  The Board of Education also directed staff to include a 12 year sunset clause in the Mill Levy
increase set to expire in 2024.  Another tax increase for repayment of additional bond debt was also on the table for consideration but the
board decided not to pursue it this election cycle given the other tax issues already on the local ballot.

So far, Loveland voters will see three local tax issues on the ballot this year.  The
City of Loveland TABOR override, Larimer County’s
Jail Tax Extension and now Thompson School District proposed increase in the school’s mill levy.

Thompson School district is the single largest recipient of property taxes in Loveland capturing 54% of the average property tax bill.  Of
the approximately 75 mills average mill levy on properties in Loveland, around 41.6 mills goes towards the school district for bond
repayments and general fund expenditures.

This means a property valued at $300,000 in Loveland pays $3,622 annually to the school district if commercial and just under $1,000
annually if residential.  The total combined tax liability for the value same property is today $6,679 if commercial and approximately
$1,833 if residential.  

How much a successful school mill levy override will cost Loveland property owners is not exactly known at this time.  Next week the
school district will forward to the County Assessors a request for “total value” to calculate the mill levy rate increase based on the
projected revenue increase they are seeking according to TABOR rules. Until the mill levy rate is determined the exact cost to each
taxpayer cannot be easily calculated.  If property values recover from the current down turn in the housing market, the new rate
established by today’s low values could yield much more than $12.8 million in future years.

The Meeting Report

The Board of Education limited public speaking only to the start of the meeting and limited opportunities to speak only to those who had
filled-in a request form prior to the start of the meeting.  

Before public comment was allowed, Board President Lucille Steiner told the audience she didn’t want to hear opinions or information
already presented by another speaker or previously heard by the board in order to save time.  Speaking directly to a group in the audience
gathered to address an issue for Loveland’s Classic School, she told them the board was already familiar with their issue suggesting they
limit or skip public input.

Pamela Howard, who introduced herself as the campaign manager for the “Community Coalition for Local Schools” coordinated the
speakers one by one in the order in which they presented.  Paul Mueller, who introduced himself as a local business owner, said
businesses were behind the mill levy increase followed by a school student, a senior citizen and parents who all indicated their
demographic would support a mill levy increase.  Each brought similar complaints of over crowded classrooms, poor air conditioning
and limited selection of elective courses for students due to recent budget cuts.

Austin Good, a Ft. Collins resident and President of the Loveland High School Student Government, told the board “classes that I wanted
to take were cancelled” while the mother of another student who followed him told the board her son is forced to pay $200 for an online
course not offered in the district anymore.  She said, “that $200 is already putting a strain on my already strained budget.”

Next spoke Nancy Rumfelt who was the first audience member to speak in opposition to the mill levy increase.  She told the board, “the
board of education website is abysmal for transparency.”  She complained that as a taxpayer and parent she was unable to access
necessary information regarding school finances to help her understand whether or not the mill levy increase is justified.  Rumfelt
questioned whether the district is paying for some costs of students better covered by parents.  She suggested the board postpone the
mill levy increase until after the appropriate information has been provided to the public regarding school finances.

Nancy’s husband Robert followed her presentation by questioning why the school district needs so much more money when enrollment
has been flat since 2001 yet the budget increasing annually.  He than corrected himself and said the student population did increase by
maybe 2 percent while spending has increased by approximately 6% every year.

Several more speakers in favor of the mill levy increase spoke after the Rumfelts with one woman challenging the transparency question,
“I was on the budget team and the information they gave us it was a lot…all these numbers and things we had to look at.”  Another
speaker and nineteen year veteran teacher at Thompson Valley High School told the board “I see things like broadcasting, choir, band
and other classes” as essential curriculum that cannot be cut.

Will The Community Support the Increase?

Last year the school board heard from Doug Houston and Josh Magden of George K. Baum and Co., an investment banking firm
assisting the school with the ballot measure.  Houston said off-year elections can be dangerous for school funding measures since the
ratio of seniors voting is higher.  Houston implied seniors will be the least likely demographic to support the mill levy increase.

The firm conducted a phone and mail campaign to Loveland residents for the district to “prime the pump” according to Houston’s
comments last year for presenting the mill levy override.  While the final cost of the surveys was not released at last night's meeting, the
original estimates ranged from between $30,000 to $80,000 or roughly one year of a teacher's salary.

The mail-in survey found 54% of those returning the questionnaire supported the tax increase and 42% opposed it.  However, the phone
survey that reportedly asked questions like, “what are your political leanings?” and “do you identify with the Tea Party?” had different
results.  In near parity with 48% favorable and 47% against the phone survey results are on balance negative for the district.  
Historically, voters not favoring tax increases normally decline to respond either a written questionnaire or phone call.  Mostly it is those
who favor it that respond.  This indicates the committee supporting the measure will have an uphill battle if they intend to pass the
measure by November 1, 2011.
School District Seeks Property Tax Increase
LovelandPolitics.com
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Click on pie below to see how
your property taxes are divided

Typical Loveland Property Mill Levy
(yours can be different depending on whether
you are in any water, fire or other districts in
addition to these)


32.487               THOMPSON R2-J GEN FUND
22.524                LARIMER COUNTY
9.564                  LOVELAND
9.156                  THOMPSON R2-J BOND PYMT
1.899                  THOMPSON HLTH SVC DST
1                         N COLO WATER CONS DIST
0.142                  LARIMER CO PEST CTRL DST

76.77