Munster finance director warns Senate Enrolled Act 1 will alter tax‑rate math, likely increasing the rate though homeowners pay less

The School Town of Munster's finance director told the School Board Aug. 12 that changes under Senate Enrolled Act 1 will change how tax rates and assessed values interact, likely requiring the district to increase its tax rate even while residents’ bills may fall. "Senate enrolled act 1 has changed the game," Finance Director Mister Melby said, explaining that gross assessed value is expected to rise while the law's new formula will reduce net assessed value. "So something that we're gonna have to look to do is to increase the tax rate. But by increasing the tax rate, our taxpayers will actually be paying less than they currently are now with the net assessed value going down. It's just a formula." Melby reviewed the district's current fund positions and reminded the board that a three‑pay month next month will reduce cash balances. He said the district's historical tax rate targets were about $1.41 and that recent years had been below that level (about $1.26 in 2025). He urged the district and board to tell that story publicly so residents understand the mechanics behind any future tax‑rate change. Board members and Superintendent Doctor Hicks agreed the district should communicate the impacts to the community. "The more that we can talk about it in public, the more folks are not like, hey, why did you inflate this tax rate when their bill comes?" Doctor Hicks said. The finance director said the district will address the issue again at the Sept. 8 budget meeting and that, under the new law, the district will likely see decreasing cash balances between major tax draws (June to November). No formal budget action or tax‑rate change was taken at the Aug. 12 meeting.