M&O Tax Rate Compression

         *  25-26 M&O – $0.6669;  26-27 M&O-$0.6519 ($0.6819 with VATRE)

         *  M&O tax rate compressed $0.015 from 25-26 to 26-27

         *  Proposed VATRE would recapture the $0.015 and add an additional $0.015

Increase in local tax collections of approximately $270,000

         *  Applying the Tier II state funding formula, state revenue generated would be around $330,000

         *  Total projected revenue from the VATRE would be approximately $600,000.

Once these three pennies are adopted, they will provide additional revenue each fiscal year.

Current plan is to apply approximately $400,000 to salaries, with the largest amount going to increasing salaries for support personnel.

The M&O tax increase on a $100,000 home is approximately $53.40 over last year.