Mill Levy Override
What is a Mill Levy Override?
A Mill Levy Override (MLO) is a voter-approved property tax that adds mills to a property tax bill. A school district MLO provides additional funding beyond what the state allocates. MLO funds support operational costs such as teacher salaries, student programs, technology, and other essential services.
In this case, the school will use the MLO for staff compensation.
How much will the Mill Levy Override be?
10-mills which equates to $600,000.
What will the $600,000 be used for?
Atrract and retain teachers and staff. The graph below shows how Mancos School District (MSD) compares with surrounding districts:
If the mill levy override passes, will it sunset?
No. This ensures sustainability for staff compensation.
Does MSD currently have an MLO?
Yes. MSD currently has a 1.03-mill MLO that generates approximately $58,000 per year, which is primarily allocated for technology needs.
How much will the MLO Cost a Property Owner?
The MLO is estimated to cost $23.70 a month for a $400,000 home value.
Have cost efficiences been maximized across the district?
MSD has a strong record of financial stewardship, including:
> Increasing fund balances from $1.7 million to $3.1 million in four years.
> Raising teacher salaries by 18.25% over three years without a tax increase.
With limited increases in state funding that do not keep pace with inflation and the rising costs of educational services, healthcare, competitive salaries, and nearly all other expenses, the school district is actively seeking additional funding initiatives.
Arguments for:
- By increasing staff pay, the district is more competitive and can retain and attract quality staff.
- Revenue generated from the mill levy override goes directly to the school district.
- When voters approve a mill levy override, you are directly investing in Mancos Schools, showing strong support for quality educators, staff, and quality education.
- This commitment helps address funding gaps caused by limited state funding increases.
Arguments against:
- Not a good time
- Increase tax burden on property owners
How much will staff salaries increase if the MLO is passed? When will staff see increases? How will wage and salary increases be determined?
* Current Year: If the MLO passes, staff can anticipate a stipend of approximately 8-10% of their current pay in May, 2026. How does this work? When an MLO passes in November, the county receives the funds in February which allows the school district to give a one-time stipend to staff in May of the current school year.
* Future Years: If the MLO passes, a stakeholder's committee (staff, school leaders, community members) will convene to determine how to distribute the $600,000 to staff salaries and wages. Overview of process:
> Committee work starts in November
> Determine guiding principles and criteria for recommendations
> Analyze and develop salary and wage schedules
> Recommend a new salary and wage schedule to the superintendent and Board of Education by the end of the 2025-2026 financial year.
> Monitor use of MLO funds over the years.
How much is $600,000 relative to the annual school budget?
> $600,000 is only 7% of total budget (8.6 million)
> Salaries and wages make up approximately 75% of the total budget
Will the school district receive $600,000 every year?
Not necessarily. This is the minimum amount but may increase to reflect current economic conditions. The ballot language states, "$600,000 for collection in 2026, and grow annually by inflation thereafter."