The Navajo County Community College District Governing Board met Tuesday and approved a $38.5 million preliminary budget for the 2015-16 fiscal year. The board also set a date for a truth-in-taxation hearing to accommodate the increase in the primary tax levy by two percent.

According to Northland Pioneer College Vice President of Administrative Services Blaine Hatch, the preliminary budget reflects a 6.7 percent decrease from last year’s budget, with revenues expected to increase $1.1 million compared to the current fiscal year.

General fund expenditures are listed at just over $24 million, down $824 from last year. Overall revenues are expected to increase compared to the current fiscal year by a total of about $1 million, or three percent of the general fund. Equalization state funding is also expected to increase in fiscal year 2015-16 by approximately $551,000 while operational state aid is expected to decline by $36,000 for a net increase of $515,000.

The $1 increase in tuition is estimated to generate $50,000 in additional revenue, with course fees set at a rate calculated to offset expendable supplies and equipment.

The state STEM (Science, Technology Engineering and Mathematics) aid formula calls for a $30,000 reduction in funding in the fiscal year ending June 30, 2016, however equipment purchases identified for the fiscal year will be tied to the actual state appropriation.

In providing information for the proposed increase in the current tax levy, Hatch explained that the current primary property tax levy stands at $14,035,754 and the increase would generate an additional $473,602. This would bring the primary property tax levy on a home valued at $100,000 to $174.23, up $3.42 from this year.

Hatch noted, “The property tax valuation continues to decline, but any growth in property tax levy associated with new construction is estimated to be approximately $150,000.”

The board also approved the preliminary capital budget, which guides the capital project planning for the next three years.

According to Hatch, funding has been identified as a combination of current fund balances with a specific designation from the board for reserving the fund balances for future purposes, and from ongoing general fund operating revenues.

“Staff anticipates the STEM funding will be used for capital equipment purchases and has included this revenue source for future planning, however, in the event that STEM funding is not appropriated in the future, sufficient fund balance is available,” Hatch said.

For fiscal year 2015-16, the funding amount will drop from nearly $7.8 million to $5.1 million, increase to $10 million for 2016-17, then drop again to $9.4 million for 2017-18. While there is no new construction planned for the next three years, those funds will be used toward building maintenance, instruction in arts and science, CTE (career and technical education) and nursing, and administrative and student services.

A truth-in-taxation hearing is scheduled for 10 a.m. on Tuesday, May 19, to be followed by the regular board meeting.

In other business, the board approved the mutual aid compact, an agreement that defines the emergency management terms and procedures that would be used among participating parties for dispatching mutual aid assistance to any affected area in accordance with local ordinances, resolutions, emergency plans or agreements.