Butler School Board members Monday asked administrators to prepare a 2018-19 budget to be reviewed at next week’s meeting with a 1.56-mill increase in real estate taxes to be used for a capital project fund.

The request came after Superintendent Brian White told the board that he prepared an 18-year financial plan that doesn’t include a tax increase next year, but raises taxes in 2019-20.

“Our budget is balanced. I don’t need a tax increase next year,” White said.

However, he urged the board to consider financial planning for future capital projects.

“My recommendation is to start a capital fund,” White said.

A capital project fund would provide money to pay for projects without the added expense of borrowing money, he said.

He prepared information outlining the impacts of a 1.56-mill tax increase and a 3.13-mill increase.

By a showing of hands, all board members indicated they supported the 1.56-mill increase, which would raise the total millage to 102.56.

At that millage rate, taxes on a property with an assessed value of $20,000 would increase from $2,020 to $2,051, White said.

A 3.13-mill increase would raise the total millage to 104.13 and raise taxes on a $20,000 property to $2,082, he said.

Nick Morelli, business services director, said the district could use an infusion of money.

The district has overspent the budget the last couple years, the fund balance is down to 5 percent and the district bond rating has been downgraded, he said.

Board member Bill Halle suggested delaying any tax increase until a strategic plan is developed so the board knows how high of a tax increase would be needed.

Board member Alvin Vavro said a capital fund is needed to pay for projects such as roof and boiler replacements and repaving parking lots. He said having a fund in place would save the district the added cost of borrowing money when projects arise.