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SV school district: Error creates tax hiccup

By Gentry Braswell and Keith J. Allen
Herald/Review
Published/Last Modified on Sunday, Sep 30, 2007 - 05:14:07 am MST

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SIERRA VISTA — An error in the Sierra Vista school district’s calculations for the 2006 fiscal year has created a higher than expected increase in the 2007 fiscal year tax bills to the district’s residents.

As a result, the district fielded a number of calls last week from taxpayers questioning their property tax notices.

A memo released by the school district late Friday stated a clerical error overrepresented the expected state aid revenues in the 2006 fiscal year by $4,336,402.

Because of the error, there was a primary school district operations fund deficit in 2006 that had to be accounted for, in addition to the district’s predicted rate increase for its 2007 levy, according to the district.

This caused the higher tax increase, the district said.

In its memo, the district stated it made every effort to maintain a steady tax rate, which accounted for the shortfall that was caused by the clerical error.

Michelle Quiroz, the district’s business manager, said the district worked to minimize the impact of the error after learning about it last year, working with the Cochise County Treasurer’s Office and Arizona Department of Education to do so. This included, she said, getting an advance on state aid.

Quiroz said the issue doesn’t have anything to do with the budget override the district has in place, and she said the Cochise County Treasurer’s Office isn’t at fault.

“It’s really a revenue issue,” she said.

In her explanation, she said the school district sets its budget expenditures every year, but in 2006 the revenues from the state to help pay for those expenditures were miscalculated. The miscalculation dropped the tax rate in 2006, too. At the same time, she said, the district didn’t receive the state aid that was predicted because of the error.

The 2007 tax rate was increased to make up for the lost tax revenue in the 2006 fiscal year, Quiroz said.

The district says the tax increase did not fall within the regulations of the Truth in Taxation Notice since it was due to a shortfall in revenues, so governing board approval was not required.

Quiroz intends to explain the situation at the governing board meeting on Tuesday.

Homeowner Marc Tibesar was one of those who had questions after receiving his tax bill last week. He said his home is assessed at a full cash value of $91,000, and his total 2007 tax bill increased by $200 when compared to the year before.

Nearly $100 of that increase was for his school district tax, he said.

“I’d like them to fix the tax bill. I don’t want them to explain their mistakes, I just want them to fix the tax bill and get it back to a reasonable rate,” Tibesar said.

HERALD/REVIEW reporter Gentry Braswell can be reached at 515-4680 or by e-mail at gentry.braswell@svherald.com. Herald/Review Managing Editor Keith J. Allen can be reached at 515-4610 or keith.allen@svherald.com.

By the numbers

Because of a clerical error, the tax rate for the Sierra Vista school district was incorrect for 2006-2007 fiscal year. In an effort to make up for that error, the district has adjusted the tax rate in the 2007-2008 fiscal year. Here’s a breakdown of the numbers involved in this issue.

State aid revenues

• $26,506,477 — What the district had calculated it would received in the 2006-2007 fiscal year

• $22,170,075 — What the district actually was entitled to receive from the state in 2006-2007 fiscal year

• $4,336,402 — Difference between the calculated and actual figures.

Tax rates

• 2005-2006 — $5.1361 per $100 of assessed value

• 2006-2007 — $3.9221 per $100 of assessed value

• 2007-2008 — $6.5785 per $100 of assessed value

According to the district, if its calculations were correct, the 2006-2007 fiscal year’s tax rate should have been $5.6676 per $100 of assessed value.

Source: Sierra Vista Unified School District

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Michael David Schwers wrote on Oct 14, 2007 2:35 PM:

" A "shill" I am indeed for the SV School District Mr Murray, Wenc or the mystery writer whom responded to my posting. Quite frankly, there's nothing better than a short-sighted reactionary response to a logical arugument. Frankly I would enjoy a public debate with an educated man such as yourself. Your Marine Corps Officers Commission was granted due in part to a college and most likely publicly funded education. Last time I hit the SV city limit sign, it didn't say anything about persons under the age of 60 not being welcome. Perhaps this is Sierra Vista's dirty little secret. "

AzLuna wrote on Oct 6, 2007 10:26 AM:

" To "come on people", not eveyone knows about this waiver you are talking about. I guess you take the passive approach to having to pay for other people's mistakes. I don't. Thanks Dick, now I have something to look forward to and prepare for. Better update my resume and start looking for another job to supplement for the increased payments to come. Yaay! "

Dick wrote on Oct 6, 2007 3:42 AM:

" To: AZLuna You're in for a shock. Your mortgage payments will increase next year to make up for the coming deficit in your tax/insurance escrow fund which will occur after your escrow fund pays for this tax hit. The bigger payments will almost certainly stay higher for 12-18 months. Maybe the school board would like to help you with these higher payments. Remember to vote, until the entire current board is replaced. It's your only hope. If the board did not realize what was happening, they shoud go....all of them. No incumbents survive. "

come on people wrote on Oct 5, 2007 10:14 PM:

" I wish everyone would quit bellyaching and suck it up. The taxes are so low in this state, that even with the increase, they're still low. It's not forever, either. For those on fixed incomes, there is a waiver you can file to reduce your taxes, so you don't feel the pinch as much. We've all got to do our part to make sure our kids are educated in the best way we can. "

to bottomley wrote on Oct 5, 2007 3:28 PM:

" HI, this is your petition signature collector from the good ole motorcycle days in the wash. How are you? Hope everything is fine. The tax hike is outrageous. Why is the city starting on the park in the wash outside of the city limits at the expense of the city taxpayers? They will tell you the cost is negligible but don't seem to include things like city manager and planner salaries, title fees, construction, etc. Especially when the county people do not want the city there? Good questions to ask of our elected officials. "

AzLuna wrote on Oct 5, 2007 3:00 PM:

" Here we go! Having to pay for some one elses mistake! I'm tired of doing that! Thank goodness our tax payments come out of our mortgage otherwise we would be hurting big time!!! Thanks alot! "

Angry taxpaper wrote on Oct 5, 2007 12:37 PM:

" Being a widow and property owner on a fixed income, I feel this outrageous math error is a disgrace. How is this going to be fixed ? Sierra Vista taxpapers arise and make your voices heard. Do not stand by and do nothing. "

Angry Taxpayer-Buena Alumn wrote on Oct 5, 2007 9:19 AM:

" My taxes went up about $300 which means my mortgage with everyone else is going up now. To New Homebuyer: It sounds like you bought new construction and the taxes were land only before. From what I have heard from others (and this forum) taxes only went up about 25-30%. James, I went to school with you from elementary at Carmichael on through HS. I think it's terrific that you are a teacher. Not every student in the SV school district is an idiot, only the students that don't want to learn. If parents don't encourage it... "

stop tax abuse wrote on Oct 4, 2007 8:15 PM:

" to M. Schwers: Might you be a shill for the school district to seemingly not have any respect for the taxpayers? Do you know for a fact everyone can afford a sudden increase? Do you not care that the district BLATANTLY AVOIDED notice to the public because that is their self-interested interpretation of the law and rules? Apparently you support dictatorship like government traits. "

James Moffett/Teacher wrote on Oct 2, 2007 10:02 PM:

" As a teacher, I would like to reiterate the comments of my colleagues. SVPS teachers work extremely hard to educate students. We work long hours for little pay, because we love what we do. This is not an issue of teacher incompetence. I for one am sick of the negativity in this town towards education and the lack of respect teachers receive. Someone at the district level made a huge mistake. I understand your anger, but realize this has nothing to do with us. It affects us just as it affects you. "

Michael David Schwers wrote on Oct 2, 2007 8:52 PM:

" As the author of the editorial some years ago that chastised Ron Murray and Tony Wenc for their narrow-minded points of view regarding the override, I am absolutely appauled at the behavior exhibited by people who place more value on their senior discount at the Golden Corral than on the value of education. So a "hiccup" on your tax bill has you all up in arms and screaming for justice. Have you taken the time to see exactly where the state of Arizona stands in overall academic performance? According to http://www.morganquitno.com, Arizona came in dead last. "

Meeting tonight wrote on Oct 2, 2007 8:36 AM:

" There is a meeting tonight at the high school about this issue. I say all the concerned residents need to show up to show them we're not just going to sit by and take this. "

Taxpayer wrote on Oct 1, 2007 10:36 PM:

" The correct email for our elected representative is jpaton@azleg.gov My question: Is this clerical error "taxation without representation"? "

Taxed to the Max wrote on Oct 1, 2007 10:29 PM:

" jpaton@zleg.gov This is the email for our elected state representative. Let's all email him about that little "clerical error". It is his job to look into these matters. I'm going to do just that. The SVPS expect us to just let things go. They need the book, "Easy Math for Dummies". "

recall them wrote on Oct 1, 2007 9:40 PM:

" Go to the school board meeting Tues. Oct. 2, 7 pm. Give them an earful, but don't let them get away with it by showing you some 'dazzling' powerpoint presentation to 'explain' this. Also, recall the school board and have Humburg fired, she is the supervisor making over $100k that is incompetent. Wake up Sierra Vista, we are being raked over the coals time and again. Tucsonans put on the ballot to overturn a $14 a month sewer increase.... "

New Homeowner wrote on Oct 1, 2007 7:11 PM:

" I am a new homeowner and my tax bill went from $292 last year to $1452 this year!!! I'm in shock!!! I agree that cutting back would be a better solution than this increase. It makes me remorseful of buying a home in Sierra Vista! "

Wondering wrote on Oct 1, 2007 6:57 PM:

" Is Braswell, or Allen going to investigate this further, and be so bold as to name names, as to who made this major misscalculation? "

Anne G. wrote on Oct 1, 2007 10:11 AM:

" "Tax hiccup" is a ridiculous way to describe this grotesque mistake. The amount I am required to pay for the SVSD this year has increased by nearly 40% and has a huge effect on my tax bill. It is not appropriate to make the property owners make up for mistakes and too costly programs. How about cutting back this year to make up for the deficit? That's what I have to do when I overspend. "

Chris Sterner wrote on Oct 1, 2007 9:27 AM:

" This is absurd! Tax payers should have been informed of this dramatic "increase" before we received our annual tax notifications. My taxes have increased a whooping 23% ($400) in a single year! If my $400 increase is the middle of the road and there are around 50,000 residents in the county it comes to a 20 million dollar increase in one year. How does this translate into the $4 Million dollar deficit???? Mistakes like this are unacceptable! Looks like we need to relook at our representation. "

To Mr. Bottomley wrote on Oct 1, 2007 8:50 AM:

" You are correct. Another way should be found. Why can't the City get involved. They are spending all kinds of money on "nice" little amenities. Maybe that money could be rolled in to offset at least half of the shortfall. How about all the money the City plans to spend on that Garden Canyon linear park? They are hiring consultants when your bill went up over 25%. Outrageous. How about all those multi-use paths. Rally nice but they get VERY LITTLE use. Stop spending. Give my money back! "

Hanz wrote on Oct 1, 2007 6:55 AM:

" Real harm has been done here to folks who bought real estate this year. Buyers are paying extra tax which really belongs to the sellers. This "hiccup" deserves an investigation from an outsite authority. The school board and administration either knew or should have known about this grevious error and should have communicated ASAP to the community so as to mitigate additional damages to real estate buyers. But no.....we find out when the bill arrives in the mail. The board and administration should all be fired or at least have the integrity to resign. "

Jeff Andrzejewski wrote on Sep 30, 2007 9:19 PM:

" Here is some math for you. The distric also took 2.5% from the 3-4% raise to teachers and we just recieved our $375 check after taxes. "

Teacher and tax payer wrote on Sep 30, 2007 8:37 PM:

" I would like for all those making comments to recognize that the district office staff is not "teaching" the students. Teachers are, and we are just as much at the mercy of the system as everyone else! Please don't insinuate that teachers are incompetent due to a budget issue that was completely out of our hands! "

Taking advantage of homeowners... wrote on Sep 30, 2007 7:07 PM:

" They learned about this last year and they're just now telling the homeowners??! I want to know what they are going to do to fix the situation, that doesn't involve taking advantage of homeowners. Yet another example of this town's incompetence. "

Taxpayer wrote on Sep 30, 2007 7:07 PM:

" The "two" reporters could have done a bit more legwork, and let us know who messed up/misculated. I used a different word, that had to do with a certain type of fastener, but that isn't allowed on this site. "

Harvey Norton wrote on Sep 30, 2007 5:38 PM:

" The explaination of why taxpayers were not notified before they recieved thier tax bills is unacceptable. The Notice of Trith in Taxation law did not prevent the school district from giving taxpayers advancec notice! The SVSD Superinrendent failed the taxpayers by not doing so and shopuld be held accountable. I have lost confidence in the adnistrations and the governing board's competency to run our schools. "

Ron Murray wrote on Sep 30, 2007 4:52 PM:

" This is more than "a revenue issue." It is a serious error by people we pay to get it right, followed by rules interpretation to avoid telling us about it at a time when we might have taken action to avoid it. As a result of the error, which apparenetly escaped oversight that even an inexperienced business would have had in place, we spent $4,336,402 more than was authorized. Now, we are must pick up the tab. I am willing to do so once the present administrators are replaced with competent people. "

ken jones wrote on Sep 30, 2007 4:05 PM:

" well, as usual, sierra vista is squeezing every penny outta the people. this town is a joke and so are the people running it. just like southwest gas is reaming all of us, this city government is ripping us off, filling their pockets just like southwest gas. and library? thats a joke too. "

ken jones wrote on Sep 30, 2007 4:02 PM:

" well, as usual, sierra vista is squeezing every penny outta the people. this town is a joke and so are the people running it. "

Angry wrote on Sep 30, 2007 4:01 PM:

" Clerical error?? That's the cover story for "we wasted your money and now we want more." "

Interesting wrote on Sep 30, 2007 3:57 PM:

" I agree. how convenient that they said nothing about this hiccup until the tax bills went out. "

Need A Math Class?? wrote on Sep 30, 2007 3:43 PM:

" Someone needs to reevaluate this employee's competence. It appears the taxpayer gets no say, and no notice in which to prepare, for a suddenly inflated tax bill. Like Marc Tibesar, the homeowner quoted in the article, I'm not interested in explanations. I just want the situation remedied in a more fair manor! Like many others, I live on a fixed income so I calculate my spending carefully. My planning DID NOT consider having to cover someone else's mistake! "

Jim Byrd wrote on Sep 30, 2007 3:20 PM:

" So our rate should be in the $5.7 range next year since this year's rate is a current rate plus the make-up portion. This story needs to be simplified. The way I understand it is someone at the school district messed-up and charged us too little last year. Then someone else took it upon herself to charge us more this year. I don't care what regulation allowed her to do this; we should have been told of the mess-up and that they were going to increase our taxes before they did it. "

Linda wrote on Sep 30, 2007 1:16 PM:

" My tax bill went up by over $500.00 for a year. That is a substaintial amount of increase. One of the reasons people find Sierra Vista an atractive place to live is the low taxes. This increase is outrageous! Deficit or not, lets keep the property taxes down. People have not made that much of an increase in wages to account for the difference in the tax increase. "

Concerned wrote on Sep 30, 2007 11:59 AM:

" So where was the auditing which would have caught this error? What is the status of the employee(s) who made the error? I agree with Marc Tibesar. My bill went up over $400 and with all of the other increases in todays ecomony it becomes increasingly hard to make ends meet, especially with such a short time to come up with the extra. Some forewarning would have been very helpful. "

A.G. wrote on Sep 30, 2007 11:06 AM:

" Fire the clerks and let the students do the calculations. At least they can do simple math. PATHETIC PATHETIC PATHETIC! "

tax abuse wrote on Sep 30, 2007 10:38 AM:

" They can charge whatever they want and call it a "clerical error"? This is tax abuse. Mistakes like this should not happen. This should be investigated by somebody at a higher level. Where is the oversite. Why didn't the school board know about this? Or did they? "

Barry B. wrote on Sep 30, 2007 9:47 AM:

" Unbelievable! Is this the same school system making this mistake that is teaching our children? Would a corporation get away with publicly admitting this kind of error? The administration that made this mistake is overpaid and should have their business practices re-examined. "

not buying it wrote on Sep 30, 2007 9:46 AM:

" The district's excuse is pathetic. Trying to pull the wool over the taxpayers. Either deceit or utter incompetence is happening by Humburg and the finance dept. My whole tax bill went up 26.5%, most due to SVPS. Why was this hidden from the public until AFTER the bills went out?? I hardly call this increase a "hiccup." "

Extremely disappointed wrote on Sep 30, 2007 8:46 AM:

" Throughout the article the party who made the error was conveniently omitted. This is absolute trash, even if they didn't have to notify the board, you think they would have the common decency to allow the taxpayers to be advised of this situation before they just received a higher tax bill. Totally unacceptable, all this does is show that the district will deceive and hide when given the opportunity. I am very disappointed in the accounting office and this district. I regret voting for the override now when you see this kind of fiscal irresponsibility. "

no name wrote on Sep 30, 2007 7:46 AM:

" They make an "error" and we all pay for it--literally! Don't blame tax payer for being skeptical about school budget issues with "errors" like this. "

Taxpay wrote on Sep 30, 2007 7:26 AM:

" The person or persons that miscalculated should have been fired immediately, when it was discovered. Apparently they aren't qualified to do that job. "

Edward Bottomley wrote on Sep 30, 2007 6:58 AM:

" Originally a qualified accountant, I am appalled at this situation with our property taxes. Someone's head should be rolling and a better way should have been (or still should be found of handling the matter). Two friends and I with whom I have discussed our recently received tax bills all have increases of between 25-30%. This exorbitant increase shouldn't be allowed in one year! It gives those who are on the financial edge a huge problem, no advanced warning, no explanation accompanying the bill and, worst of all, not much time to find the extra cash!! "

politically incorrect wrote on Sep 30, 2007 6:25 AM:

" and these are the people teaching math to kids? it's no wonder..... "

Tom G wrote on Sep 30, 2007 6:12 AM:

" Should anyone be surprised? The kids they "educate" can't add or spell either. Now they want more of our money to continue their incompetence. "

JP wrote on Sep 30, 2007 5:51 AM:

" 3 comments for Ms. Quiroz: 1. You can't add. 2. You will spend/waste all the money you think you are getting, this is not a budget. 3. This explains why the gang graffiti is misspelled. "