SYRACUSE - Taxpayers in the Wawasee School District shouldn't be alarmed by a big advertised increase in the school's Capital Projects Fund.

That was the message at Tuesday evening's budget work session.

Director of Finance Jim Evans told board members that this year's budget process has been complicated by several factors, including the state's financial picture, budget shortfalls and uncertainties concerning assessed valuation.

For those reasons, Wawasee is advertising a CPF of $3,804,180 for 2003. By contrast, the 2002 levy for capital projects was $1,643,271.

Evans emphasized that $3.8 million will not be collected.

He explained that every year during the budget process, the school advertises rates higher than they anticipate collecting. Once a rate is advertised, by law it can't be raised. It can be - and virtually always is - lowered.

In 2002, for example, the advertised CPF was $2,020,283. After review by state tax commissioners, the actual levy ended up at $1.6 million.

This year is unique, however, because school officials simply don't know what the assessed valuation of property in the district will be.

A lawsuit and subsequent action by the state legislature have forced Indiana to change to a market-based formula for assessing property for taxing purposes.

Last year, assessed valuation of property in the Wawasee district was $745 million. For the purpose of advertising budgets this year, the county assessor advised Wawasee and other county school districts to assume assessed valuation at 80 percent of last year's.

"We're advertising the CPF significantly higher," Evans said. "We will establish the real rate after we know what the reassessment is."

He said there are no significant capital improvements planned for 2003, only maintenance of existing facilities. It follows that the 2003 CPF levy should be similar to 2002.

Evans also noted that the CPF is the only part of the budget where there is much local control. Other funds - the general fund, for example - are largely controlled by the state.

Here are the 2003 budget amounts to be advertised, followed by the 2002 actual budget amounts and their corresponding tax rates.

2003 Advertised

General Fund $9,090,058

Debt Service $4,470,285

Capital Projects $3,632,621

Transportation $1,553,624

Bus Replacement $245,948

Spec. Ed. Preschool $125,000

Total $19,117,536

2002 Actual

General Fund $7,254,239

Debt Service $4,039,241

Capital Projects $1,643,271

Transportation $1,219,970

Bus Replacement $293,628

Spec. Ed. Preschool $24,593

Total $14,474,942

The advertised budget passed unanimously.

The board approved a resolution to transfer funds from the CPF to the general fund for operating expenses.

Previously illegal, the transfer was allowed by state legislation to help school districts offset shortfalls in state disbursements.

A total of $244,441 was transferred, requiring a second resolution to reduce appropriations in the CPF by a like amount.

The board also:

• Approved the child-raising leave request of half-day music teacher Kristina Stump for the 2002-03 school year.

• Approved the employment of Brenda Sumwalt to replace Stump during her leave.

• Approved the resignation of Kenny Williamson, Wawasee High School custodian.

• Approved the termination of Kevin Taylor, Wawasee Middle School custodian.

• Approved the transfer of John Glover, full-time custodian, to Wawasee High School from North Webster School. [[In-content Ad]]