Rather than switch to a 100 percent collection in the summer, Oxford Schools will continue, for the time being, collecting half of its local property taxes in the summer and half in the winter.
The school board was considering switching to a summer tax collection beginning next year, but decided Monday evening to postpone making a decision.
‘We wanted to give the community more time to prepare and see if we can phase it in,? said Superintendent Dr. William Skilling.
The switch would not have changed the amount of tax money the district receives. It would have only changed when the taxes are collected.
Officials are going to discuss the potential change at the three community forums they plan to hold in March, but not make any decisions until May.
‘It doesn’t mean that we’re definitely going to do this,? Skilling said. ‘We want to give the public time to speak to the issue in March. But if we do this, by approving it in May, that gives people at least 15 months to get ready.?
In order to begin collecting 100 percent of its taxes in summer 2010, the board would have had to act before Dec. 31.
Skilling indicated a 100 percent summer tax collection would help the district with ‘cash flow? issues stemming from when it receives its regular payments from the state and prevent it from having to borrow money at certain times just to pay the bills.
‘We have to pay all of our expenses for a month and then the state aid payment comes later,? he explained. ‘Two years ago, when our fund balance wasn’t as good as it is today, we paid $130,000 in interest because we had to borrow money.?
If the proposed 100 percent summer payment were to be implemented, it would affect the district’s 17.9946-mill operating tax on all non-homestead properties such businesses, rental properties and second homes.
It would also impact the 7-mill tax the district collects from both homestead and non-homestead property owners to pay off its bond debt.
Property owners currently pay 50 percent of these millages on their summer bill from the township and the other half on their winter township bill.
Skilling noted school taxes are split 50/50 in Oxford and Addison, but not in Brandon, Metamora, Dryden and Hadley, all of which levy everything in the summer.