WATERLOO -- The Board of Education Monday will consider approving a $199.25 million 2008-09 budget estimate, including a 7.25 percent increase in tax askings.

The board meets at 6 p.m. in the Education Service Center, 1516 Washington St. If approved, the budget would return to the board April 14 for a public hearing and certification.

Estimated property tax collections for Waterloo Community Schools' residents would rise $2.54 million to $37.59 million. A board memo said the property tax rate is projected to drop from $16.72 to $16.65 per $1,000 of taxable valuation.

"The decrease in property tax rate is due to the taxable property valuation for the district showing a 7.84 percent increase," according to the memo. "When the property valuation increases, it offsets the budget dollar increases."

The proposed budget, which will go into effect July 1, is $41.73 million more than the current year. Nearly all of that is due to $40 million in general long-term debt proceeds, a line item that doesn't exist in the current year's budget. Much of those proceeds will go toward making a three-year balloon payment on $35 million in tax revenue bonds the board approved for school renovation and construction projects.

State foundation aid of $56.16 million is projected to be the single largest source of revenue for the district, $1.5 million more than the current year. Districts will receive $5,546 per student next year, a 4 percent increase. However, Waterloo will receive an increase of only 2.66 percent in funding because of declining enrollment, the board memo said.

Combined revenues for tuition/transportation, earnings on investments, meals, and student activities and sales are estimated at $6.17 million. Other revenue from local sources is estimated at $11.8 million. District officials are expecting a total increase of $710,000 from all those sources compared with this year's re-estimated budget.

Foster care, educational excellence and other state funds are estimated at $7.04 million, $600,000 more than this year. Title I grants, Individuals with Disabilities Education Act funds and other federal sources are estimated at $9.28 million, $365,000 more than this year.

In other business, the board will:

n Consider approving 2008-09 instructional fee increases of $10 for kindergarten and $5 for all other students. That will bring total fees up to $20 for elementary students, $30 for middle school students and $35 for high school students. The increase, which would be the first since 1996, is being recommended after a review of costs associated with instructional fees and a comparison with other urban districts.

n Consider submitting three grant applications. Two are part of a service learning project in Maggie Mnayer's East High School advisory group to construct two bus shelters along University Avenue. The class is seeking $5,000 from Lowe's Toolbox for Education and $7,000 from the Black Hawk Gaming Association. Veridian Credit Union has already awarded the class $7,000 for a third bus shelter. The total cost will be $24,000 for the three shelters. The third grant is for $15,000 from the National Football Foundation's Play It Smart Program for East High in conjunction with the Boys and Girls Club of Black Hawk County. The grant would partially fund an academic football coach to enhance academic performance and life skills of the team. The coach would work with team members throughout the year.

n Consider approving a $32,000 bid for financial audit services with Hogan-Hansen of Waterloo. The contract amount would be for 2008 with annual increases built in until it reaches $37,000 in 2012.

n Hold a new Partners in Education signing ceremony for Lou Henry Elementary. Central Christian Church and Advance Diagnostic Imaging will become partners with the school.

Contact Andrew Wind at (319) 291-1507 or andrew.wind@wcfcourier.com.