North Kansas City Schools sets 2026 tax rate, adopts updated budget and approves insurance renewals

The North Kansas City Schools Board of Education on Sept. 30 approved the district’s final tax rate for fiscal 2026, adopted an updated September budget reflecting stronger-than-expected revenue, and authorized annual renewals of property, liability and workers’ compensation insurance.

Treasury and tax rate

Matt Fritz, presenting the tax-rate package and budget updates, said: "Each year before October 1, the board of education is required to set tax rates for, by fund for the upcoming year." Fritz told the board the district’s operating levy was calculated at 4.0643 mills after a required rollback of 0.2438 mills; the debt-service levy was 1.43 mills, for a combined rate of 5.4943 mills, a 0.1214-mill reduction from the previous year. The board set that rate by voice vote.

Why it matters

Fritz said assessed valuation rose substantially since the June estimates, increasing by $303,700,000 and producing about $13,500,000 more in tax revenue than projected in the adopted June budget. The September update also reflects a higher state funding estimate after the district used the full $71.45 per pupil foundation amount now in effect.

Budget changes and fund balance

The board adopted the revised September budget to incorporate new revenue and expenditure estimates. Key changes Fritz identified: - Assessed valuation: +$303,700,000 vs. June estimate (source: September update). - Additional tax revenue estimated: +$13,500,000 vs. June estimate. - State foundation funding estimate increased by $3,700,000 with full $71.45 per pupil assumed. - Salaries and benefits increased by $4,400,000 compared with the June projection to account for previously approved contingency language. - Purchase-of-services lines increased about $450,000 (insurance-related costs).

Fritz said the district’s projected fund balance at 6/30/2025 is about 23.25% (up from the June estimate of about 20.87%), and the projected fund balance at the end of next year is 18.4% (was 17.1% in the June projection).

Insurance renewals

Fritz reviewed the district’s property, liability and workers’ compensation renewals and told the board that premiums will rise by approximately $691,000 — from about $4.4 million to $5.1 million — year over year. He identified two principal drivers: increased exposures (the district has "more stuff and more things to cover") and higher rates on several lines. Line-item changes he cited include a 23% increase for workers’ compensation, a 19% rise in education legal liability, a 7% increase in umbrella coverage and smaller changes elsewhere. Fritz said Lockton served as the district’s insurance broker after a recent procurement. The board approved the renewals by voice vote.

Board procedure and votes

The agenda and the consent agenda (26 items, with one item separated for individual consideration) were approved by voice vote earlier in the meeting. Motions in the meeting were made and seconded; the meeting recorded voice votes with "all those in favor, say 'yes,'" and did not record a roll-call vote tally in the transcript. Where the transcript records a named speaker making a motion, the article notes that; otherwise mover/second are listed as not specified in the record.

What the board said

Fritz: "The district’s property and liability and workers’ compensation insurance policies expire on September 30, today." He described the year-over-year premium changes and said the estimates were included in the updated budget the board was being asked to adopt.

Next steps

Fritz told the board the finance team is working with independent auditors RSM on the fiscal-year audit and will present the final audit to the board and the Missouri Department of Elementary and Secondary Education by the statutory due date. The board directed staff to continue monitoring insurance claims and to enhance safety and injury-prevention work to address rising workers’ compensation costs, including additional safety programming with the broker.

Votes at a glance

- Approval of agenda: motion made and seconded; passed by voice vote (record: voice vote; mover/second not specified in transcript). - Consent agenda (26 items): motion made and seconded; passed by voice vote (one item taken for separate consideration and approved separately). - Approval of proposed tax rate (operating levy 4.0643; debt levy 1.43; total 5.4943 mills): motion made and seconded; passed by voice vote. - Adoption of updated September final budget (reflecting revenue and expenditure changes described above): motion made and seconded; passed by voice vote. - Authorization of insurance renewals (property, liability, workers’ compensation and related lines): motion made and seconded; passed by voice vote.

All recorded actions in the meeting were approved by voice vote; the transcript does not include a roll-call roll or an itemized numeric vote tally for these motions.