Consultant: State SCA 1 changes will cut Wes-Del's assessed value and tighten revenues

April, a consultant from Policy Analytics, told the Wes-Del Community Schools board that state changes under SCA 1 will reduce the district's net assessed value and put pressure on revenues, particularly in 2027. "A home will only be taxed at about a third of its value by 2031," she said, describing a mix of shifting homestead deductions to credits and changes to business personal property exemptions.

The consultant said SCA 1 replaces some deductions with a 10% or $300 maximum homestead credit and expands the business personal property exemption (raising the exemption to $2 million), which she said will remove an estimated $23 million from the district's net assessed value in 2027. "For the district it's about 23 million that's coming out of the net assessed value calculation in 2027," she said, and the firm modeled that as roughly a 6.2% net AV decrease for that year.

Why it matters: April showed model runs the board could use to project cash flow and levy outcomes. She said the changes will reduce revenues available to the operations and debt-service funds: in the model, the debt service fund faced about a $74,000 reduction and the operations fund about $288,000 in reduced revenue for 2026. She warned that as net assessed value shrinks, the tax rate will likely rise as a mechanical response to maintain existing levy revenue, and that districts may see flatter levy growth despite increasing tax rates.

Policy details cited during the presentation included the homestead credit mechanism (10% or $300 max), the change raising the business personal property exemption threshold to $2 million, and changes to farmland capitalization rates. April also noted the prior 30% floor for business personal property depreciation has been altered, allowing newer equipment to depreciate closer to zero and reducing taxable value for some businesses.

Board impact and next steps: April said the district's cash balances are "holding steady" but cautioned the board to prepare for a period of tighter finances: "you might need to cut back a little bit for the next 3 years until we start to see revenue growth again," she said. She recommended the board review the updated 10-year cash-flow projections when Policy Analytics completes the 2026 model and monitor pending legislative action that could alter debt-service protections.

The board did not take a formal vote on the presentation; members asked clarifying questions and thanked the consultant. The district will receive updated cash-flow materials and projections once the firm finishes modeling under the latest legislative changes.