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Preliminary tax figures show historic assessed-value gain; board told levy will roll back under Hancock limits
Summary
District staff presented preliminary assessed-value increases and a tax-rate outlook showing a large assessed-value gain in 2025, a 2.9% CPI cap under the Hancock Amendment and a preliminary reduction in the district's operating levy.
KIRKWOOD R-VII School District staff briefed the board on preliminary property-assessed values and the district’s preliminary tax-rate calculations, saying large assessed-value increases this year will compel a reduced operating levy under Missouri’s Hancock Amendment.
A staff presenter summarized the tax-rate process, the Hancock Amendment’s role in limiting year-to-year tax revenue growth and the district’s current calculations based on assessed-value (AV) numbers released in July. The presenter said the district must use the lowest of three metrics set by statute for allowed revenue growth; for this year the consumer price index (CPI) used by the state auditor is 2.9%.
The presenter described a strong increase in district assessed values — residential values rose about 19.5% and overall AV grew more than 16% in the projection shared with the board. Those increases, paired with the 2.9% Hancock cap, produced a projection the presenter described as a significant reduction in the operating levy: preliminary operating levy calculations showed an operating levy in the neighborhood of 2.7658 and a historically low residential levy for the district.
The presenter noted the district can capture revenue from new construction outside the Hancock cap; preliminary new-construction AV was reported at just over $19,000,000, producing roughly $694,000 in additional revenue. The district also submitted years of data to pursue recoupment for prior-year assessment reductions and expected approximately $1,000,000 in one-time recoupment revenue if approved by county/state auditors.
Staff provided operational revenue projections tied to the preliminary levy calculations. Using the preliminary AV and a conservative 97% collection assumption, the staff calculated the district’s maximum entitled revenue at $76,779,485 and estimated collected operating revenue (97% assumption, excluding debt service) of roughly $74 million, a figure slightly above earlier budget projections and about $2 million greater than last year’s operating revenue.
Board members asked about the assessor’s role, timing and mechanics. The presenter said the St. Louis County assessor issues AVs and that final numbers are expected about September 15; the county and state audit offices will then finalize levy certifications before the board must approve final rates by October 1. The presenter urged board members to monitor possible state-level changes, noting recent debate over Senate Bill 3 and county decisions tied to the measure. "There's an appetite statewide for another look at how property taxes impact local residents," the presenter said, and he urged vigilance because change at the state level could affect district revenue.
Board members asked follow-up questions about long-term planning, collection history and the effect of a historical AV spike on multiyear budgeting. The presenter said the district’s fund balance position is healthy and that staff will present updated final numbers and recoupment responses at the scheduled September board meeting. No board action was taken at this work session; staff will return with final AV numbers, recoupment determinations and a formal levy recommendation for board approval.
Ending: Staff will present final assessed values and recoupment certification when St. Louis County releases final AVs (expected Sept. 15) and will return with a formal levy recommendation for the board’s October certification.
