(KNZA)--The Hiawatha school board has approved for publication a proposed 2019-20 budget that calls for a 2.7 mill levy decrease.

The action came during a special meeting Wednesday evening.

The proposed budget contains an estimated tax rate of 49.704 mills, which is to generate more than $6.2 million.

Superintendent Lonnie Moser attributed the mill levy reduction to a more than $5.5 million increase in the district’s assessed valuation, growth in enrollment and increase in the base state aid per pupil.  

It’s the second year in a row the district has been able to lower the mill levy.

Moser said the mill levy for the supplemental general fund budget will decrease about three-quarters of a mill and bond and interest levy will drop two mills.  He said they plan to keep the capital outlay levy at 6 mills even though the district has the authority to levy up to 8 mills.

Board President Ian Schuetz said the bond and interest levy of 6.8 mills fulfills a promise to taxpayers to return the levy to 7.3 mills or below when the middle school bond issue was retired.  It was paid off in September of last year.

The board will consider adoption of the budget following a public hearing at their August 12 meeting.