Although the Moniteau School Board passed its budget with a tax hike, the increase is less than was included in the proposed budget the board passed in May.

The new budget will see the district spending $22,082,666 for the 2018-19 school year, which would include an increase of 2 mills in property tax and a planned deficit of $247,684.

In its proposed budget passed in May, the board was looking at a 3.01 mill increase and a deficit of more than $300,000.

Despite a 6-2 vote in May, board members found the latest budget more agreeable, accepting it with a 9-0 vote.

Shortly before the vote, board member JoAnn Duke spoke in favor of the budget on behalf of the finance committee.

“We unanimously agree that this is the way we should go and recommend it to the board members that this is the way they should follow suit,” Duke said.

Duke said the tax increase was necessary, and the general fund balance is helping with the additional costs. She said newly added costs of security were also a factor in raising the tax rate.

“You have to do what you have to do,” Duke said. “You have to be prudent when you spend your money.”

The real estate tax of 90.62 mills is $9.062 for each $100 of the assessed value of taxable property.

“For most, the average assessment of homes in this district, it will almost be a negligible cost. Less than $3 per month,” Duke said.

John D'Amore, the district's business manager, said the median assessed value for a homestead is $14,460. On average, homeowners who live in their home, will see about a $29 increase from $1,282 to $1,311 in their tax bills.

The district also approved use of $547,684 of the district's fund balance with $300,000 as a budgetary reserve. The remaining $247,684 will be used to pay non-annually recurring costs to cope with the deficit.

D'Amore said using the general fund balance has to be done strategically. Part of the plan for reducing the impact of next year's budget is to pay for five retirees' health insurance at a cost of $78,000.

“Whenever we committed the assigned fund balance we had for an existing obligation, we could take it off our budget,” D'Amore said. “It's venturing into trying to incorporate the fund balance more proactively.”

Overall, D'Amore said factors like more favorable insurance quotes and a vacant position that the district plans to leave unfilled, contributed to the reduction in anticipated shortfalls for next year.

D'Amore said he was satisfied with the transparency of the budget and next year's increase.

“Our budget's always about reality. It's not a lot of fluff,” D'Amore said. “When our budget goes up, you can see exactly why and where.”