WFHB Bloomington Community Radio
Podcast: Play in new window | Download (Duration: 5:41 — 3.9MB)
The Richland Bean Blossom Community School Board has approved contracting with investment bankers George K Baum and Company to assist with its finances.
In last night’s school board meeting, Superintendent Mike Wilcox acknowledged the budget is his responsibility. But, he said “a second pair of eyes is greatly appreciated.”
According to School Board Vice President Dana Kerr, the R-BB school corporation will pay George K. Baum and Company seven thousand dollars up front to analyze past budgets. The school corporation will pay another one-thousand, six-hundred dollars a month for ongoing auditing.
Wilcox and the school board have come under scrutiny in the wake of an error Wilcox made in filing financial documents with the Department of Local Government Finance. The error came to light when area residents were caught off guard by increased property tax bills. The error has resulted in a $1.1 million increase in property tax collection for RBB.
According to Monroe County Auditor Cathy Smith, the error meant the school system ended up with a tax rate of 72.8 cents per every $100 of assessed value, when the rate should have been 61 cents per $100. According to Smith, 10,600 tax bills were overcharged.
Area residents attending last night’s board meeting spoke out against the contract, and the error that prompted it.
Area resident Dave Jenner, who has two children in RBB schools, took Wilcox and the board to task over the contract. Area resident Katelynn Owen expressed concern that the cost of the financial services contract will be yet another burden on taxpayers. Cathy Abel is a Bean Blossom Township resident and taxpayer. She told the school Board in April that her tax bill had increased 14 percent. Last night, she said the board has lost the confidence of the community.
Abel was followed by unidentified man who said “All I ask is that you just resign.” It was unclear if his request was meant for Wilcox, the board, or both.
Another audience member warned the board, “November is coming.”
Without referencing any specific public comment, Board member Jimmy Durnil cautioned the public about judging the board without having all the facts. For his part, Superintendent Wilcox said he hated “…all that has happened.”
Board Vice President Dana Kerr addressed the tax error in a statement provided to Indianapolis journalist Kara Kenny of RTV6 on May 10. He said “the increased funds must be used for debt service only.”
The Tax Error Statement went on to say the extra money has allowed RBB to restructure new bonds meant to fund several projects already approved for Edgewood Primary and Intermediate schools.
