Sparta board backs $7.00 mill rate for annual meeting, approves $2.5 million cash-flow borrowing option

At the Sparta Area School District board meeting on 2025-09-22, Miss Houser, a district staff presenter, reviewed the proposed 2025–26 operating budget and asked the board to recommend a tax levy mill rate to publish ahead of the Oct. 21 annual meeting. After discussion and two roll-call votes, the board agreed to present a $7.00 total mill rate to voters for the annual meeting and separately approved a short-term cash-flow borrowing resolution not to exceed $2,500,000.

Houser summarized the district's finance picture: the district ended the prior year about $300,000 positive; projected revenue for 2025–26 is down roughly $600,000 while expenses are projected to rise about $800,000, creating a projected deficit of about $1.1 million. The board had set aside $1.5 million in reserves for revenue stabilization; using roughly $1.1 million of that would leave an estimated fund balance of about $9.5 million, which Houser said is roughly in line with the board’s 18% fund-balance policy and necessary for cash flow.

Houser presented three levy options that combine the revenue-limit (operations) levy, a debt-service levy linked to the facility referendum, and a community-service levy. She said the operations (revenue-limit) component would amount to roughly $2.83 per $1,000 of equalized property value under current estimates. The district’s facility referendum debt component was presented as a roughly $3.49 debt-service mill rate tied to previously approved referendum obligations.

Board members debated tradeoffs between short-term tax stability and using the district’s ability to levy additional debt-service now to reduce long-term borrowing costs and create state aid advantages next year. Houser explained that increasing debt service this year could produce additional state aid next year and make a future operating referendum’s local net impact smaller; several board members characterized that approach as a lever that can be shifted between debt and operations.

The board first voted on a motion to present a $7.10 mill rate to the annual meeting. The motion failed on a 3–4 roll call (Yes: Dr. Burnett, Mr. Wells, Mr. Burns Gilbert; No: Mrs. Lopez, Mr. McKenna, Mr. Gonkey, Ms. Behrens). A subsequent motion to present a $7.00 mill rate passed 6–1 (Yes: McKenna, Burnett, Behrens, Gonkey, Burns Gilbert, Wells; No: Lopez). The board then approved the budget posting as presented by a 6–1 vote (Lopez dissenting).

On a separate agenda item, the board approved a resolution authorizing taxable cash-flow borrowing not to exceed $2,500,000, with roll-call approval 7–0. Later in the meeting the board voted 7–0 to move into closed session pursuant to Wisconsin Statutes 19.85(1)(c) to consider employment and performance data for public employees; no public details were discussed after the closed session vote on the record.

No final operating referendum was approved at the meeting; Houser and members noted that an operating referendum could be necessary for the 2026–27 fiscal year because the current operating referendum amount ($750,000) will expire and projected budget pressures could require additional local revenue. Houser said final numbers for the current budget and levy will be certified around Oct. 15 and that the dollar amounts published now for the annual meeting notice may change slightly before the district’s final levy certification.

The board did not adopt additional budget policy changes at the meeting. Members asked administrators to continue refining projections, monitor enrollment and property value updates, and prepare communications for the annual meeting.