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The Pipestone Area School (PAS) Board during its Dec. 15 meeting approved a 2026 property tax levy of $4,428,218, which is an increase of $130,535, or 3.04 percent. The total levy includes a $2,289,247 debt service levy, a $2,024,027 general fund levy and a $114,944 community service levy.
The levy is the maximum allowed by the state based on a formula that takes into account student counts, property valuations and other factors. In September, the School Board set the preliminary levy at the maximum allowed amount, which was $4,225,563.45 and would have been a 1.68 percent decrease. Figures in the formula used to calculate the levy were since updated and approving the maximum preliminary amount in September allowed the School Board to adjust the final levy accordingly.
“That’s why you always approve the max, because if you don’t approve the max, then once they make those changes you wouldn’t be able to,” said PAS Business Manager Jacque Kennedy.
School Board members approved the final levy following the annual truth in taxation hearing. State statute requires that such hearings be held and that the budget and levy be discussed and public input be allowed prior to the final levy being approved. No community members spoke during the truth in taxation hearing, but Superintendent Klint Willert presented information about the budget and levy.
School Board member Tyler Fruechte asked following the truth in taxation hearing what measures the School Board could take if it ever wanted to approve less than the maximum levy amount allowed.
Willert said he’d never been asked that question before, but that if the School Board wanted to levy less than the maximum amount, it would have to consider what it didn’t want to levy for. He referred to a slide presented during the truth in taxation presentation that showed the various components of the overall levy including operating capital, long-term facility maintenance, community education, career and technical education, leases, debt, bond, capital projects, voter approved operating referendums and others.
School districts are different than other taxing entities such as cities and counties because their fiscal year begins July 1, so they approve their budgets in June rather than December. In June, the School Board approved a fiscal year 2026 budget with projected general fund expenditures of $17,995,471 and revenue of $16,949,435, leaving a deficit of $1,046,036. The food service fund had projected expenses of $1,084,865 and revenue of $1,140,470, leaving a surplus of$55,605.
The community service fund had projected expenses of $225,120 and revenue of $289,710, leaving a surplus of $64,590. The building construction fund had projected expenses of $1,739,726 and revenue of $23,449, leaving a deficit of $1,716,277. The debt service fund had projected expenses of $2,185,850 and revenue of $,2,208,769, leaving a surplus of $22,919.