PONTIAC — The future of the Pontiac grade school district’s finances will be in the hands of voters in February.

The Pontiac Elementary School District 429 board voted unanimously Thursday night to put a tax rate increase referendum on Feb. 2 ballot. Voters will be asked to raise the maximum tax rate from the current $3.03 per $100 equalized assessed valuation to $3.53 per $100 EAV.

For a $150,000 home, the school district’s tax bill would increase from $1,515 to $1,765.

This tax rate would be in effect for four years.

Superintendent Steve Graham said the increase is needed simply because expenses are increasing and revenue is decreasing.

“We are one third into the school year and the state owes us over $500,000 in payments,” he said. “State aid is expected to decrease while expenses continue to increase by 4.5 percent every year.”

If the tax increase is rejected, the district will have to look at cutting staff, he said.

“I see this as a vote for the kids,” said board member Cheri Lambert.

Livingston County is under the Property Tax Extension Limitation Law, which limits the growth of a taxing body’s levy — the total amount it seeks in property taxes — to 5 percent or the rate of inflation as defined by the  Consumer Price Index, whichever is less. The latest figure for CPI growth was 0.1 percent.

“Without additional assistance from the taxpayers, we are going to start to have some issues as the debt is going to have an impact on our students,” said board President Mike Fairfield.

The board finance committee previously met to discuss raising the tax rate by 30 cents, 50 cents and 70 cents.

Officials opted to go with the 50-cent increase because it would leave the district with a surplus of about $2.2 million in the education fund by 2014. Under the current tax rate, the district is facing a deficit of $1.2 million in the fund by 2014.