BELTON - A tax ratification election called by the Belton school district will be from 7 a.m. to 7 p.m. Saturday at the Harris Community Center, 401 N. Alexander St.

At stake is a maintenance and operations tax rate of $1.17 - a 13-cent increase from the previous rate of $1.04.

Combined with a $0.241 interest and sinking fund rate (for capital improvements from the past) the total tax rate will be $1.411 per $100.

The 13-cent increase amounts to an additional tax of $10.83 per month or $130 per year on a $100,000 home claiming homestead exemption.

Taxes would not go up for those 65 or older who have frozen tax bills on their primary residence, district officials said.

The tax will support a general fund budget of $61.9 million for 2008-09, a $3.7 million child nutrition budget, a $7.5 million debt service and $73,500 revenue bond.

Eric Haugeberg, assistant superintendent for Support Services said the $1.04 rate does not give the district enough to accomplish budget priorities and keep it functioning at the current quality level.

Major cost increases have been in utilities and the cost of fuel, he said.

The tax hike also will fund a 4 percent average salary increase for all employees and an increase for teachers with five or more years of service.

Haugeberg said the pay raise would make Belton ISD competitive with other school districts the same size in Texas and particularly with other districts in Bell County.

During the 2005-06 school year the Legislature reduced the property tax rate cap for maintenance and operations from $1.50 to $1 for all public school districts. It added a possible four cents enrichment to make it a total of $1.04. The legislation allows districts to raise the maintenance and operations portion of their tax rate to a ceiling of $1.17 - but only with voter approval.

Since the Belton district is considered a property poor district the state reimburses it $1.20 for every dollar it raises in tax revenues. The payment is tied to enrollment.

Haugeberg said in September the state reimbursement per-pupil was frozen by state law at 2006 levels with no factor for inflation.

If while operating within the $1.04 cap the district receives more revenue than the previous year because of increased appraisals or an expanded tax base, then the state reduces the amount it sends based on enrollment. It effectively offsets any increase.

“We’re getting the same amount of money we were getting per student that we were getting a few years ago while the costs of everything have gone up,” Haugeberg said.

Dr. Vivian Baker, superintendent of schools, said if the tax increase is approved the district should be able to operate within the rate for the next four to five years.

Belton property owners interviewed looked at the tax increase with pros and cons.

John McCormick said the district has been behind in salaries for employees for some time and needs to play catch-up.

“If we want quality education for these kids we need to keep quality teachers in the system,” McCormick said.

McCormick said a lot has been spent on the county jail but money needs to be spent educating youngsters and providing them with suitable after-hour activities so they don’t end up in the judicial system and ultimately in jail.

“Thank God we don’t pay our teachers by the hour,” he said. “If you are out at 6 a.m. or 7 p.m. you can see athletic coaches with the kids and teachers working with after-hours programs.”

Harry Roberts said he greeted the news of a tax hike darkly.

“It makes me want to vote against it,” Roberts said. “Especially as a retiree on a fixed income. We only get a 2 percent raise on our retirement fund that doesn’t come close to catching up with the cost of living.”

David Taylor of Belton said the 13-cent hike doesn’t sound like much.

“But when you go adding it up it’s the most I’ve seen,” Taylor said.

Taylor said he could understand the district’s need with the cost of energy going so high. But he said taxpayers are faced with the same increases plus anxiety from national economic turmoil.

Haugeberg said 817 early voting ballots have been returned. He said it is difficult to compare that number to prior elections.

“This particular tax referendum is a new requirement of a new system,” he said. “Prior elections have been bond issues for capital improvements. These elections coincided with the May election of a new board of trustees.”

Next on the horizon for the Belton district is a bond election in May 2009 to consider building a new middle school near U.S. 190 and Loop 121. Estimates have been in the range of $35 million.

There are other items from a top 10 list of priority needs that could be considered at that election.

Haugeberg said two or three long-range planning meetings would be held during the fall semester to firm up those plans.

hclark@temple-telegram.com