The Marshalltown School Board approved next fiscal year’s budget at a special meeting Monday evening, including a 34-cent property tax increase.

That means the school’s property tax rate for residents, set to jump from the current $17.99 per $1,000 taxable valuation to $18.33, will be at the same level it was in 2016.

“This is a 1.9 percent increase over the current year,” district Finance Director Paulette Newbold said.

In all, the district expects to spend about $82.3 million, leaving an estimated fund balance of $10.7 million at the end of next fiscal year.

The school budget that passed Monday came with no “tweaks or changes,” as board Vice President Janelle Carter put it, since it was initially proposed weeks ago.

Various local governments have gone in different directions when it comes to their property tax rates for FY 2020, which begins on July 1. Along with the school’s 34-cent increase, the Marshalltown City Council increased its rate 10 cents.

However, Marshall County’s overall property tax rate is set to decrease about 11 cents, as is the Iowa Valley Community College district rate.

“The consolidated tax rate for individuals who live within the city of Marshalltown and within the Marshalltown School District is estimated to go up about 2 cents,” Newbold said of the total property tax rate starting July 1.

The consolidated rate includes the tax rates of the school, county, city, Iowa Valley Community College District and more. It is currently at $40.95 per $1,000 taxable valuation for Marshalltown residents.

Marshalltown Schools officials have said there are several reasons the tax increase is needed. One is the district’s participation in the state budget guarantee program.

The property tax-funded budget guarantee program is meant to protect school districts with declining enrollment. Schools get much of their funding through per-pupil dollars from the state.

About 93 students left Marshalltown Schools this school year, each taking with them about $6,700 in school funding.

Superintendent Theron Schutte previously said many of those students were likely lost due to families moving after the July 19 tornado.

The state per-pupil funding increase approved earlier this year did not do enough to offset the lost per-pupil revenue. Therefore, Marshalltown Schools is one of several districts in the state which must participate in the budget guarantee program under Iowa law.

Another reason Marshalltown Schools officials said the property tax increase is needed is to increase the district’s ability to handle financial demands, also known as its solvency ratio.

Newbold previously said the district’s current solvency ratio is about 2.5 percent. The goal is to incrementally raise that number up to the 8-10 percent range.

The next Marshalltown School Board meeting is set for 5 p.m. April 15 at the Central Administration Office, 1002 S. Third Ave.

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Contact Adam Sodders at

(641) 753-6611 or

asodders@timesrepublican.com