CHERRY TWP — The Moniteau School Board on Monday night approved a $21.53 million budget and a 0.7-mill property tax hike for the 2016-17 school year.

That budget is up from the current one of $20.38 million.

The new millage rate will be 87.62. A mill generates $1 for each $1,000 of a property’s assessed value. The current tax rate is 86.92 mills.

John D’Amore, district business manager, said the new millage rate will bring in about $46,728 more for the district.

The average homeowner in the district will pay $9.98 more in real estate taxes with the new rate, D’Amore said.

“Our business manager is extremely competent,” said board President Kathy McBride. “For the projects we have going on and to have such a small tax increase, it’s amazing.”

D’Amore said the new budget does not use money from the fund balance for operating expenses. However, it does include $893,443 from the fund balance for non-annually recurring expenses. These include bleachers and drainage improvement at the high school stadium, refurbishing the water wells at Dassa McKinney Elementary School, oil tank replacement at the high school, roof maintenance at the high school, and new furniture for the high school cafeteria.

The new budget also uses $100,000 from the fund balance to maintain a budgetary reserve for unanticipated expenses.

“The district has made good use of funding with a fiscally conservative approach,” said D’Amore.

The budget has an increase of $417,047 in retirement costs and an increase of $108,556 in benefits costs. The district has little control over these costs.

D’Amore said 64.7 percent of the budget is staff salaries and benefits, 32.2 percent is fixed costs and only 3.1 percent is discretionary costs.

“The state hasn’t resolved the state budget. We still don’t know what the state’s contribution will be,” D’Amore said. “The district consistently makes the best possible decision considering the uncertainty and inconsistencies of state funding support.”

In other business, the board:

Approved a contract with Youngblood Paving to do crack sealing on parking lots at Dassa McKinney Elementary and Moniteau High School for $10,125.

Approved two more years and a 3 percent rate increase on a contract with the Campbell Bus Co. to add recorders to all buses including full-size, vocational-technical, spare full-size and small buses. The additional years are 2018-19 and 2019-20.