AUBURN - The city school board adopted a 2007-08 budget with a lower tax levy and rate than originally projected Tuesday.

The Auburn Enlarged City School District received some help from a more favorable final state budget and clearer concept of how an inaugural lump of Foundation Aid can be used.

The tax levy stands at $25,210,090, or 6.2 percent more than this year's $23.7 million, but about 2.2 percent of the hike is linked to the value of a payment in lieu of taxes agreement that will transfer to the tax roll.

“The shift in the PILOT represents $520,000, so the net change in tax revenue comes to 3.99 percent,” district Business Administrator Marianne O'Connor said.

The proposed base tax rate of $18.67 per $1,000 of assessed value represents a 66-cent increase, 3.6 percent more than this year's 18.01 per $1,000. Rates for other towns in the district will be released later this week, Superintendent John Plume said.

A home assessed at $100,000 would have a $1,867 tax bill, about $66 more than this year.

The $63.4 million spending plan is a $4.1 million, or 7 percent, increase over this year's $59.3 million. O'Connor pointed out that 2.4 percent comes from $1.4 million in state Foundation Aid that will be invested in new programming, which brings the operating budget increase to about 4.5 percent.

A contingency budget would cap the spending at 3.84 percent and essentially cost the district $210,000 in student and maintenance equipment purchases, she said. A public hearing on the budget is slated for May 8 with the vote to follow May 15.

The district now has some plans for the first-time Foundation Aid. About one quarter of the $1.9 million total award will go to existing programs.

“We have a task before us,” Plume said. “The state has told us there are five areas where we must apply these funds.”

Administrators consulted the district goals to come up with ideas that may fall under the guidelines of class size reduction, increased student time on task, quality initiatives for teachers and administrators, middle and high school restructuring and full-day kindergarten or universal pre-kindergarten.

More teachers to reduce class sizes, extending library hours for students and the public after school and building partnerships with nearby colleges are among the possibilities Plume presented to the board.

Plume said he would confirm which proposals are eligible for the aid and return to the board.

In other news:

* Fleming Street homeowners upset with a district land sale proposition made a second appearance to the board during the public comment period Tuesday.

The district wants to sell 19 parcels that extend well past a fence bordering the high school the respective owners of the neighboring properties. The group of homeowners argues the prices included in the public referendum that the board authorized at its last meeting are too high.

“We will not buy the parcels without meaningful negotiations with each of the property owners,” resident Jim Crowley said.

Staff writer Shane Liebler can be reached at 253-5311 ext. 248 or shane.liebler@lee.net