Southgate board approves 2025–26 budget, certifies tax rate request

The Southgate Community School District Board of Education on June 24 approved the district’s 2025–26 original budget, adopted a final amendment to the 2024–25 budget and certified the Truth in Taxation form L‑4029 to request levy rates for the coming tax year.

Staff member Stan presented the proposed 2025–26 budgets for the general fund, food service fund and community services fund and walked the board through revenue and expenditure assumptions, millage requests and projected fund balances. “I am here tonight to present the 2025–26 proposed original budgets for our general fund, our food service fund, and our community services fund,” Stan said.

The board’s action set the nonhomestead operating levy at 18 mills (expected to raise about $6,290,000), a 6‑mill levy on commercial personal property, a debt levy of 5.85 mills (projected to generate $5,357,726 for bond principal and interest) and a sinking‑fund levy of 1.8721 mills. Board members approved the L‑4029 tax form certifying those requests.

Why it matters: the approved millages fund day‑to‑day operations, transportation, food service and debt service on voter‑approved bonds. Stan told the board the district’s projected general‑fund balance as a percentage of prior‑year expenditures is 30.67 percent, well above the district’s 10 percent policy minimum.

Key figures and assumptions presented by staff included a projected increase in the state foundation allowance from $9,608 per pupil to $10,000 per pupil (a $392 increase), an anticipated enrollment increase of about 50 pupils, the elimination of a one‑time lease revenue tied to Beacon that reduced local revenue, and an uptick in special‑education reimbursements. Stan presented an estimated ending general‑fund balance of $17,730,317 for the proposed original 2025–26 budget and noted projected total revenue of $65,583,486 and total expenses of $65,561,675 as shown in the presentation.

Board action and process: the board approved a final amended budget for fiscal 2024–25 and then approved the 2025–26 original budgets and the L‑4029 tax form by voice votes. Dr. Pomponio made the motions to approve the 2024–25 final amendment and the 2025–26 original budget; motions were supported and adopted by the board with no opposition voiced during the roll calls.

During questions, a board member asked about the increase in transportation costs. Stan said the budget includes a planned increase of roughly $10,000 and that the district’s transportation contract contains an annual escalation clause of 3 percent.

The board also discussed the loss of roughly $1.2 million in local revenue tied to the discontinued lease at Garish; staff said that drop is the largest local revenue decrease reflected in the proposed budget.

Looking ahead: staff said several items remain uncertain, including the final state foundation allowance and the official October pupil count; the district will return at later meetings if adjustments are required.

Ending: The budget approvals and L‑4029 certification formally authorize the district’s levy requests and spending plan for 2025–26; staff will continue to monitor enrollment and state aid developments and report back as necessary.