Re-2 School Board Certifies Mill Levy/Rate reduces by nearly 4.5 mills

At the December 13, 2023 School Board Meeting, the Garfield Re-2 Board of Directors certified the mills for the 2024 school year. This is an action that is required by the State of Colorado at the end of each year - typically prior to December 15 -  before property taxes are assessed in the following year. 

The total mill levy for the Garfield Re-2 School District for 2024 is 20.856 - a reduction of 4.460 mills from 2023. This is possible because of the significant increase in assessed valuation in the District explained Garfield Re-2 Chief Financial Consultant Jeff Blanford.

The mill levy is the "tax rate" that is applied to the assessed value of a property. One mill is one dollar per $1,000 dollars of assessed value (.001). The type of property an individual owns dictates at what rate it is assessed. The mill levy is based on the total value of all property in the district, for 2024 valued at roughly $1.3 billion -  a significant increase from $900 million in 2023. 

“As the assessed valuation goes up, the mill levy needed to collect the same amount of money goes down,” he told the Board. 

He added that even with a state-required increase in the local share of the District’s general operating fund, the increased valuation is resulting in a decrease in the mill levy rate.

“Because the assessed valuation went up, we’re getting a higher percentage from the local share. The total amount of money we receive is flat. The increase in the local share reduces the amount of the state’s contribution,” said Blanford adding that currently the state funds about 83% of Garfield Re-2’s Total Program Funding. When the required mill levy correction is final, the state’s contribution should reduce to about 60% with the local taxpayers contributing between 35-40 percent of the District's Total Program Funding.

Garfield Re2’s mill levy is composed of several parts: 7.7 mills for the Local Share of the District’s Total Program Funding, 6.853 mills for additional voter-approved taxes, 6.283 mills for school bond repayments, and 0.020 mills for abatements. 

In dollar figures, Garfield Re-2 will receive about $28 million, up from $25.3 million in local revenue. Of this, about $19.5 million will go to the general fund and about $8.4 million will go toward the bond redemption fund to repay building bonds. The state backfills the remainder of the almost $64 million general fund revenues. 

In 2023, the Colorado legislature took steps to ease property tax burdens for Colorado residents. This legislation raised the state’s actual property value deduction from $15,000 to $55,000.

Following a 1997 vote and legislative changes in 2021, the district’s mill levy has been gradually increasing. Despite a lower rate this year compared to last, the district expects an increase in net revenue.