Cuba City schools explain the mill rate and how rising property values affect taxes

Aaron Olsen, superintendent of the Cuba City School District, and Heather Dresser, the district's business manager, released a short explainer video answering how the mill rate on school property taxes is calculated and what it means for local homeowners.

In the opening, Olsen defined the mill rate as "a way to measure how much tax is charged for every $1,000 of equalized property value" and described the basic calculation: divide the district's total tax levy by the total equalized property value and multiply by 1,000. "The levy tells you how much money the district needs and the mill rate tells you how that needs to get spread across property owners," he said.

The presenters gave local context. They said the district's mill rate has trended downward in recent years and cited a figure of about $9.70 per $1,000 of equalized property value for the referenced school year (the transcript shows "2526," which appears to be a typographical error; the intended year is 2026). Using that mill rate, the video calculates that a home with $200,000 in equalized value would pay about $1,940 toward school taxes under the school district's portion of the bill.

Olsen and Dresser emphasized the difference between the levy (the total dollars the district plans to raise from property taxes) and the mill rate (the rate that apportions that levy across all taxable property). They explained that rising total property values in the district (which they say have climbed from about $431 million to over $470 million in recent years) spread a given levy over a larger base, which can lower the mill rate even if the levy increases in dollar terms.

The video also noted that voters recently approved several referendums'one for capital projects and two for operations'and that those voter-approved measures influence the levy and, by extension, the mill rate because they can spread costs over time and provide greater stability for the district's budget.

To help viewers remember the essentials, the presenters listed five key takeaways: (1) the mill rate shows tax per $1,000 of property value; (2) it depends on both the levy and total property values; (3) rising property values can push the mill rate down even if the levy rises; (4) the levy does not on its own set the mill rate; and (5) understanding the mill rate helps residents see how education is funded and shared across the community.

The video closes with a preview that the next installment will explain state aid and fund-balance concepts. The presenters encouraged residents to consult their property tax bill to see the mill rate listed for each taxing authority, including the school district.