Mill Levy Override: Frequently Asked Questions

Public school districts, including Eaton School District, receive the majority of their funding from the state (0-20%) and local property taxes (78 to 98%), with a small amount from federal sources (2%). Funding for districts is provided first by local revenue sources (property and ownership taxes). The state covers the remainder based on a per-pupil formula set forth in the School Finance Act. In Eaton, this ranges from 0% to 20% of the total funding. The formula starts with a base amount for each district and adds factors that reflect district characteristics and demographics, attempting to make adjustments for equity. 

Colorado allows individual school districts to ask voters to approve funding that goes beyond the state distribution through voter-approved tax revenue funding.

• Bonds may be used only for capital expenditures, such as major repairs, renovations, additions to schools, and new schools. Bonds are not included in the district’s general fund and cannot be used for operating costs, such as salaries and benefits.
• Overrides (also known as mill levy overrides, or MLOs) are generally used to fund operating expenses such as salaries and benefits, instructional programs, and classroom technology. Overrides are added to the general fund. However, MLO funds must be used as specifically outlined in ballot language. 

A mill levy override, or MLO, is a taxpayer-supported funding mechanism used by school districts to fund ongoing expenses such as student programs, equipment, and competitive staff salaries. MLO funds are collected for the District as property taxes.

The estimated tax impact of the MLO is $8.81 per month per $500,000 of a home’s actual value.  The energy sector will cover 70% of the MLO cost. These numbers are based on updated assessed value information provided by Weld County.

The formula: actual value times .0705 gives you assessed value.

Assessed valued times by .001 equals one mil.

One mil times three gives you 3 mils for an annual expense.

Annual expense divided by 12 for a monthly expense.

$500,000 x .0705 = $35,250 (assessed value)

$35,250 × .001 = $35.25 annual cost per mil

$35.25 x 3 mils = $105.75 annual expense

$105.75 / 12 months = $8.81 monthly expense

All funds from the MLO stay local. None of the money goes back to Denver.

In 2006, the MLO was targeted for technology to improve school safety through the installation of cameras. Since then, the district has followed through by installing more than 309 cameras to help ensure student safety in every building and on school buses.

The district also proposed and delivered on all-day kindergarten. 

It has maintained Chromebooks on a regular replacement cycle, along with other electronic equipment that supports our performing arts programs. In addition, the district has installed state-of-the-art screens in classrooms across the district, as promised, and continues to maintain them with district staff.

Finally, the district has worked to keep class sizes lower and has helped mitigate the growing salary gap with larger neighboring districts.

In 2019, the school district focused on student services. The MLO funded support for student safety by funding two campus monitor positions. We continue to maintain these positions today, as promised.  However, the shared cost of the three School Resource Officers (SROs) is a district expense not covered in the 2019 MLO. 

Additionally, MLO funds were used to support the addition of assistant principals at Eaton Elementary School (EES) and Benjamin Eaton Elementary School (BEES), as promised. Both of these positions will be fully staffed next year.

Recognizing the growing mental health needs of our students, the district invested in additional mental health professionals, including psychologists, and expanded support through our partnership with North Range Behavioral Health. This generation of students continues to face significant emotional challenges influenced by social and environmental factors, and these supports are critical.  

The district also followed through on its commitment to strengthen staff support by adding a Human Resources technician to manage increased responsibilities and the growing complexities of human resources and compliance.

The MLO has also helped to modestly increase staff salaries. 

Finally, the MLO helps the district manage the rapidly increasing cost of health insurance, allowing us to maintain competitive benefits for our staff while remaining fiscally responsible.

There are many anticipated benefits, including:

• Retaining the proven and talented teaching staff
• Recruiting the cream of the crop of new teachers
• Attacking the best teachers from the region
• Protecting our high-performing and highly sought-after schools
• Increasing successful CTE programs
• Creating new CTE and Career Pathways for students through public input
• Providing students with an alternative to a four-year college
• Providing career certificates for students while in high school
• Improving safety and security training with our fire and PD partners
• Attracting and retaining quality teachers and staff at all levels of their careers
• Protecting property values through quality schools

The District will make presentations to local organizations, host community information meetings, keep our website up to date, and conduct a public opinion survey. Your participation is greatly appreciated.  The district will monitor the informational email address [email protected] to answer community questions.