Homeowners can expect dip in property tax

Homeowners in the Glendale Union High School District should see some tax relief next year.

The Glendale Union governing board approved its budget for the 2008-09 school year at a meeting Wednesday evening.

The district's administrator of finance, Gene Dudo, presented the details of the budget and said he expects that an owner of a $100,000 home should see a savings of about $30 for the year.

That break will happen, in part, because the district has repaid more of its bonds and reduced its debt, Dudo said.

The $115 million budget is 1.6 percent larger than the budget for the 2007-08 school year. The majority of the budget increase will pay for employee raises of 0.25 percent.

Much of Wednesday's discussion over the new budget centered on rising utility costs.

Under state law, school districts are allowed to pay for a portion of their utility bills by using local property taxes. But under voter-approved Proposition 301, districts can no longer use these taxes to pay for excess utilities after the 2008-09 school year.

"Excess utility" is a utility cost that exceeds the district's budget limit each year.

Dudo said Glendale Union has made several efforts in recent years to become more energy efficient, such as converting all air-conditioning units to new energy-efficient units and using more energy-efficient lighting.

And next year, a new phone system is expected to offer additional savings.

But rate increases from electric companies have offset these efforts to become more energy-efficient, Dudo said.

"Excess (utilities) isn't that school districts go out and woefully spend utility dollars," he said. "We are fighting rate increases."

Five years ago, the district spent about $3.8 million on utilities. For 2008-09, it will spend more than $7 million.

"We're paying more and more for electricity even though we're doing our best to save," governing-board member Kevin Clayborn said.

The state Legislature is expected to create a new funding formula for utilities that would go into effect for the 2009-10 school year, Dudo said.