Why a Debt-Free Mill:
PSD is seeking a Debt-Free Mill to create a dedicated revenue source to improve and extend the useful life of the district’s buildings. This funding will also allow the district to reprioritize more of its general fund for recruitment and retention of teachers and staff, classroom resources, career and technical education, and neighborhood schools.
Specifically, funds would be used to:
- Attract and retain exceptional teachers and staff
- Expand career and technical education spaces and update curriculum, resources, and classroom materials - including materials for the arts, music, physical education, athletics, library books and technology - to better prepare students for their future; and create replacement cycles for things like our bus fleet
- Maintain aging school buildings to extend their useful life, including installing air conditioning in buildings that do not currently have it
- Support neighborhood schools
Without this mill levy, PSD does not have a sufficient dedicated ongoing funding source to fund the items listed above.
Frequently Asked Questions
More information is also available on the 2024 Mill Levy web page.
Debt-Free Mill Levy
What is the Debt Free Schools Act?
The was created by the Colorado State Legislature in 2019 as a mechanism for school districts to collect ongoing funding for building maintenance and infrastructure needs. Historically, school districts in Colorado have sought bond measures to support the maintenance of their buildings, which require that districts pay interest on the bond funds collected. The Debt Free Mill Levy creates an ongoing funding stream that does not require the district to pay interest. Therefore, it is a more fiscally responsible way to fund maintenance, particularly since maintaining our buildings will always be a need.
How much will the mill levy provide to the district??
The mill levy would provide the district an additional $49 million per year. This funding would be in addition to per-pupil funding from the state. School districts are allowed to seek voter approval for additional funding to address priorities such as teacher recruitment and retention, classroom support, and building maintenance.
How will this funding be used??
It is anticipated that approximately $21.5 million of qualifying expenses currently paid for from PSD’s general fund will be allocated to the mill levy to allow an equivalent amount of funding in the general fund to be re-prioritized for salaries, classroom materials, career and technical education, and neighborhood schools, which will directly benefit classrooms and students. Approximately $22.9 million will be dedicated to necessary building maintenance and repairs in our forty-nine schools. The final $4.6 million will be allocated to district-authorized charter schools, which is required by state law.
How will my school benefit if this measure is passed??
See how the mill levy will impact your school in this table. >>
This table outlines facilities maintenance projects that are slated for completion in the first five years of the mill, should the measure pass. PSD will prepare maintenance plans for improvements in each of our schools on five year intervals. These maintenance plans will be posted to the PSD website as they are finalized in the future.
What is the financial impact if this mill levy passes for homeowners and businesses?
The financial impact of this mill levy on homeowners if the mill passes is as follows:
Residential Home Value | Tax Increase per Year | Tax Increase per Month |
$300,000 | $75.63 | $6.30 |
$400,000 | $100.84 | $8.40 |
$500,000 | $126.05 | $10.50 |
$600,000 | $151.26 | $12.60 |
$700,000 | $176.47 | $14.70 |
For businesses, which are assessed at a rate of 27.9% compared to 6.7% for residential properties, the tax increase would be $113.92/year per $100,000 of non-residential value.
What is the financial impact if this mill levy fails for homeowners and businesses?
The financial impact of this mill levy on homeowners if the mill fails is as follows:
Residential Home Value | Tax Decrease per Year | Tax Decrease per Month |
$300,000 | $110 | $9.16 |
$400,000 | $147 | $12.25 |
$500,000 | $184 | $15.33 |
$600,000 | $220 | $18.33 |
$700,000 | $258 | $21.50 |
For businesses, which are assessed at a rate of 27.9% compared to 6.7% for residential properties, the tax decrease would be $166/year per $100,000 of non-residential value
Why is the amount that taxes will decrease if the mill fails higher than the amount they will increase if the measure passes?
In 2024, PSD will be paying off debt associated with a bond that was passed years ago. Because the district will no longer be paying off this bond, it can collect $29 million without increasing the tax rate. To reach $49 million, as proposed in this mill levy, the district must collect an additional $20 million in tax, which results in the tax rate increase associated with this measure. If the measure fails, PSD’s tax rate will drop because the district will no longer be paying tax on a bond and it will also not be collecting additional mill levy funding, meaning the tax increase and tax decrease will be different numbers.
Why does the ballot question include an inflation adjustment?
Many of the district’s expenses are increasing annually by inflation, and some expenses, including building maintenance and fuel for buses, sometimes increase more than the inflation rate. The mill levy would allow the annual amount to be adjusted using the Consumer Price Index for our region to help account for inflation on building maintenance, equipment replacement and other expenses that the district must address on a continual and annual basis.
What happens if the mill fails??
Should the mill levy fail, the district will face cutting both programs and staff to pay for the necessary maintenance of our buildings. The district has more than $650 million in identified maintenance needs in our buildings today. This does not include the cost of maintaining things like asphalt, playgrounds, irrigation and systems on our campuses outside of our buildings. These maintenance needs will only continue to grow over time. Additionally, should the mill fail, there will be insufficient funding available to install air conditioning in those buildings that do not currently have it.
Should the mill fail, PSD will also continue to operate with insufficient funding to replace curricular and classroom materials, like art supplies, musical instruments, athletic equipment, and things like school buses. PSD will also not have sufficient funding to renovate our buildings to renovate educational spaces without this mill levy funding.
Should the mill fail, taxes paid by homeowners and business owners for PSD will decrease.
Are we going to revisit closing schools??
At this time, the district is not considering closing schools. However, should enrollment continue to decline as anticipated, it is possible that the district may need to consider closures in the future. To assist with long-range planning, the district will convene a standing comprehensive planning committee that will be charged with monitoring facility use and making recommendations to the district regarding things like boundary modifications on an ongoing basis.
$1 billion in facilities needs seems like a big number. What is included in it??
PSD has identified approximately $650-700 million in maintenance needs to keep the mechanical systems of our buildings up to date and operating. It will also cost between $250 million and $300 million to install air conditioning in those buildings that do not currently have it. Installing solar on buildings where it is financially feasible is anticipated to cost approximately $6.4 million.
In addition to these costs, we anticipate needing several million dollars to maintain the exteriors of our buildings, including maintenance and repair of things like irrigation systems, asphalt, and playgrounds. These anticipated costs are based on known needs as of 2024. Over time, we know that we will experience additional building maintenance needs as well emergent needs that are not included in these totals.
Why is the $49 million being sought in perpetuity??
The district will always need to maintain its school buildings, support the replacement of curricular materials, renovate our buildings to provide learning environments that prepare students for the future, and provide market salaries to its staff. Making this mill funding available in perpetuity will help to ensure that the district has sufficient funds for the above priorities into the future.
Will charter schools receive additional funding from this??
Yes. State law requires a portion of locally approved mill levies or bonds to be shared with charter schools. The district estimates $4.6 million will be provided to charter schools that are authorized by PSD if voters approve the measure.
Will there be an oversight committee if this measure is successful?
Yes. PSD will establish a mill levy oversight committee of staff and community members if the measure is successful. In addition, as part of its fiscal accountability and transparency, the district publishes its annual budget and an independent audit on its web site. All Board of Education meetings are open to the public and include an opportunity to address the school board.
The district’s graduation rate is high and literacy scores are higher than ever. Why is the district seeking more funding??
We are proud of the incredible results that we are seeing as a district. These results are made possible by our dedicated staff, the hard work of our students, and the support of families and the community. To maintain the robust programming and opportunities that we are currently providing to our students, PSD must find sources of ongoing funding that can be dedicated to addressing our building maintenance needs and that can be used to update our classroom materials over time.
Without this dedicated ongoing source of funding, PSD faces the need to make cuts to the programming that we offer students that is currently leading to their success. We would also face cuts to staffing that would change the levels of support that our students receive in their learning.
Property Taxes and School Funding
Property taxes in our region have increased. Doesn’t this money go to schools??
The Colorado School Finance Act establishes the amount of total program funding that each district in the state receives. This total program funding includes a local contribution, collected from local property and special use taxes, and state funding. When local property tax collections increase, the state lowers its contribution to the total program funding proportionally. Said another way, if local funding increases, state funding decreases by the same amount. Therefore, increases in local tax collections do not result in additional funding being allocated to schools.
Why doesn't an increase in assessed valuation and local property tax collected result in more funding for PSD overall??
The state’s School Finance Act sets the annual funding amount for each district across Colorado. Once this funding amount is set, it does not change even if local property taxes increase. If local property tax collections increase, the state will automatically reduce its contribution to the district’s annual funding allocation.
PSD Budget and Enrollment
Why are we a floor-funded district?
Colorado’s School Finance Formula includes two primary factors that increase the amount of per pupil funding that districts can receive.
One of those factors is a size factor, which provides additional funding for small districts in our state. PSD does not qualify for this factor because our district is too large.
The second factor that can increase the per pupil allocation that districts receive from the state is the cost of living factor. This factor increases funding for districts in regions with high costs of living, such as the Denver metropolitan area. PSD does not qualify for this cost of living factor.
As a result, PSD receives the minimum per pupil funding allocation outlined in the state funding formula, making the district a “floor funded district.”
What is causing some of the district’s recent budget challenges?
The district has been experiencing declining enrollment over the past decade. Both Larimer County, the national census, and the district’s data show declining birth rates in our region.
The incoming kindergarten class in PSD’s neighborhood schools is one of the smallest in more than 10 years. Since school funding is allocated in Colorado on a per-pupil basis, declining enrollment means the district and individual schools receive less funding to provide comprehensive programming at schools and maintain buildings.
What is causing the decline in enrollment in PSD? Are families choosing charter schools?
Birth rates in our district area have been declining for many years.
The district’s entering kindergarten class, in our non-charter schools, has approximately 1,400 students, compared to the more than 2,500 students in our 12th grade class. Some families in our district are choosing to attend charter schools. PSD has five district-authorized charter schools.
All schools in our district, including charters, are being impacted by declining birth rates.
What happens if enrollment continues to decline in PSD?
Passing a mill levy would help PSD to mitigate the long-term impacts of enrollment decline on the district’s funding. However, if enrollment continues to decline precipitously, as projected, it is still possible that PSD will need to consider school consolidation or closure some time in the future. There are no immediate plans, however, to reopen consolidation or closure discussions.
We have heard the reason for school consolidation was about preventing a reduction in services in schools, not about funding. Is this true?
These are one in the same. As enrollment declines in schools, the funding allocated to these schools also declines because funding is allocated per pupil in Colorado. Less funding means that schools must reduce services to students, including things like specials (i.e. art, music, physical education), and counseling, etc.
How is PSD demonstrating fiscal responsibility to taxpayers?
The district cut $6.6 million in staffing and operating budget last year to balance the district’s decreasing budget as a result of anticipated declining enrollment. Additionally, PSD is continually monitoring for opportunities to create financial efficiencies in our system. 86% of PSD’s budget goes to staffing, meaning that reductions in budget result in reductions to staff, programming, and services.
PSD is also seeking a mill, not a bond, to provide an ongoing and sustainable source of revenue for costs that will be ongoing year over year into the future (i.e. building maintenance, replacement cycles for curricula, materials, etc.).
Why is the district seeking a mill and not a bond?
Historically, Colorado school districts have funded maintenance using one-time funds approved by voters in the form of bonds. Because these are one-time funds, completing repairs using them is the equivalent of mortgaging the cost of those repairs over a 24-year period while the district pays off the bond debt. A mill levy, by contrast, would provide ongoing funding that could be used every year to address district maintenance needs. This is a more fiscally responsible way to fund costs that we know will continue year over year into the future.
When was the district’s last bond and what did it fund?
The last bond to pass that included maintenance was the 2016 bond, which provided a limited amount of funding for one-time use in addressing maintenance needs. This funding is sunsetting.
The 2016 bond allowed the district to build three new schools and renovate a fourth by adding a wing. There was also $40 million in maintenance to existing buildings included in this voter-approved measure.
Additional Questions
We have a 92% retention rate among teachers. Is there really a retention challenge??
In order to retain our talented staff, including not just our teachers, but our classified and administrative staff, it is important that PSD pay its employees at market rates. Currently, PSD’s salaries are below market rates. Without this mill levy funding, the district will continue to struggle to provide our staff with market wages.
Why did PSD leadership receive salary increases for the 2023-24 school year??
The district has committed to ensuring that all employee groups (teachers, classified, and administrative staff) are paid at market rates. As part of this effort, all PSD employees received salary increases for the 2023-24 school year. Adjustments made to leadership salaries in the previous school year addressed a significant gender pay equity gap in the leadership team. Even with these adjustments, the cabinet team's salaries remain below market, as does that of the superintendent, who received no salary increase for the 2024-25 school year.
Why doesn’t PSD eliminate School of Choice??
Offering School of Choice is required by state law in Colorado. PSD cannot eliminate School of Choice.
Supporting and Opposing Points
Those who support the mill levy say:
- PSD needs an ongoing, sustainable source of funding to pay for building maintenance, which is needed annually, and to fund necessary replacement cycles for things like school buses, musical instruments, curricular materials, physical education and athletic equipment, technology, and security equipment, etc.
- PSD’s teachers and staff should be paid at market rates to attract and retain top talent to support our students.
- PSD needs funding to renovate classrooms and buildings to ensure that these spaces are adequately equipped, safe, and productive learning environments to best prepare students for the future.
Those who oppose the mill levy say:
- Taxes are already high for residents and businesses in the district and should not be increased any more.
- PSD has already received funding from local voters, for example in a bond measure in 2016 and in a mill levy override for increases to teacher and classified salaries in 2019. The district does not need additional funding.
- It would have been more fiscally responsible for PSD to close under-enrolled schools before asking voters for additional funding.