ISD 84 â Sleepy Eye
LaCrescent-Hokah School District 2013 Payable 2014
Truth In Taxation Public Meeting 7:00 p.m. December 18, 2013
at the HS/MS Media Center 1301 Lancer Blvd. LaCrescent, MN 55947
ISD #300 Truth in Taxation Public Meeting Each taxing jurisdiction is required to hold a public meeting. You are here tonight as part of the school district’s public meeting process.
ISD #300 Requirements of the Truth in Taxation Public Meeting
1. Provide and discuss information on the budget (2013-2014). 2. Discuss proposed property tax levy for taxes payable calendar year 2014 3. Public must be given a reasonable amount of time to comment on the proposed property tax levy and budget and to ask questions. - Minnesota Statute 275.065
ISD #300 Points to Remember: 1.
2. 3.
Revenue formulas are set by the State Legislature except for voter approved referendums. Local Levy and State Aid mix are set by the State Legislature. An increase in local taxes does not necessarily mean an increase in revenues for the school district.
ISD #300 School District Budget Current School Year 2013-2014
Fund Accounting Overview 2013-2014 GENERAL FUND (Fund 01) • Revenue is based on student enrollment • The local referendum levy is part of the General Fund • Provides for classroom instruction, instructional supplies and equipment, and other educational activities • Special Education, and State / Federal Mandated Programs • Extra-curricular Activities • Pupil Transportation • Facilities Operation and Maintenance • Capital Expenditures and Improvements • Health and Safety Code Compliance FOOD SERVICE (Fund 02) • School Breakfast and Lunch Program
Fund Accounting Overview (cont.) 2013-2014 COMMUNITY SERVICE (Fund 04) • Levy is based on adult population in the District • Early childhood levy is based on the number of children under 5 years of age • Provides for enrichment programs for any age level that are not part of the K-12 education program • Early Childhood Family Education • School Readiness • Adult Basic Education DEBT SERVICE (Fund 07) • Based on annual debt retirement schedules for the district’s outstanding bonded indebtedness. Annual levy is for the payment of principal and interest on bonds as due. Current debt is a result of the voter approved Bond Issue for the 1999A general obligation school building bonds.
Fund Accounting Overview (cont.) 2013-2014 Post-Employment Benefits Irrevocable Trust Fund (Fund 45) • This trust fund is used for reporting resources set aside and held in an irrevocable trust arrangement for post-employment benefits. District contributions to this fund must be expensed to an operating fund. Post-Employment Benefits Debt Service Fund (Fund 47) • Activity to record levy proceeds and the repayment of the Other Post-employment Benefits (OPEB) bonds will be accounted for in this fund. Based on annual debt retirement schedules for the district’s outstanding bonded indebtedness. Annual levy is for the payment of principal and interest on bonds as due.
ISD #300 Revenue Budget 12-13 actual
13-14 budget
% change
General Fund
12,583,512
12,229,121
-2.8%
Food Service
638,057
605,300
-5.1%
Community Service
620,012
569,014
-8.2%
Debt Service
649,113
725,223
11.7%
19,928
15,000
-24.7%
149,133
161,662
8.4%
14,659,755
14,305,320
-2.4%
Irrevocable Trust OPEB
OPEB Debt Service
ISD #300 General Fund Revenue Budget Where Do Our School Revenues Come From?
ISD #300 Expenditure Budget 12-13 actual
13-14 budget
% change
General Fund
12,587,851
13,364,682
6.2%
Food Service
617,674
707,394
14.5%
Community Service
553,888
589,605
6.4%
Debt Service
692,063
692,188
0.0%
Irrevocable Trust OPEB
151,122
128,034
-15.3%
OPEB Debt Service
163,995
160,070
-2.4%
14,766,593
15,641,973
5.9%
ISD #300 HOW ARE GENERAL FUND DOLLARS SPENT? Expenses incurred in the operation of the district are paid from the General Fund. The following schedule relates how the dollars allocated to the General Fund are spent:
District and School Administration District Support Services Regular Instruction Vocational Instruction Special Education and Alternative Delivery Instruction Instructional Support Services Pupil Support Services Site, Buildings, and Equipment Fiscal and Other Fixed Cost Programs Total General Fund
6.4% 2.3% 43.6% 1.2% 20.7% 5.9% 7.7% 11.9% 0.4% 100.0%
ISD #300 General Fund Expenditure Budget What Do Our Expenditures Pay For?
ISD #300 Projected General Fund Balance at June 30, 2014 Restricted Staff Development Deferred Maintenance Health & Safety Operating Capital Alternative Learning Center
115,477 (1,112) 230,868 64,536
Gifted and Talented Safe Schools Crime Levy
29,481 150,127
Assigned
112,241
Unassigned
1,934,727
Total
2,636,345
ISD #300 School District Levy 2013 Payable 2014 2014-2015 School Year Fiscal Year 2015
ISD #300 Authority for School Levies
A School District Tax Levy must be either: Set by State Formula -or Voter Approved
ISD #300 Factors Impacting Tax Change Issues Driven by Legislative Decisions: Change in sales ratio (impacting ANTC) Change in tax capacity rate structure Laws mandating code compliance (Health & Safety and Buildings)
Issues Determined by District Voters: Voter approved building bond issue Voter approved excess levy referendum
ISD #300 Factors Impacting Tax Change (cont.) Local Factors:
Inflationary pressure on real estate market Abatements Property improvements not previously taxed Change in individual assessed market value Possible change in property classification (e.g. homestead to rental)
ISD #300 How will your 2014 school taxes be spent? General Fund Provides additional funding for district instructional programs by means of the approved excess referendum. Also provides funds for operating capital expenses, including facilities, instructional, textbooks and technology. Includes Safe Schools and Health & Safety project levies. Community Education Fund Levy for Community Education Programs: Debt Service Levy for repayment of principal and interest on district building debt: OPEB Debt Service Levy for repayment of principal and interest on district OPEB debt: Total Levy Before Credits:
Percent
55% 7% 31% 7% 100.0%
ISD #300 LEVY LIMITATION AND CERTIFICATION 2013 Payable 2014 Comparison of Certified Payable 2013 Levy with Proposed Payable 2014 Levy GROSS LEVIES BY FUND General Fund Community Services Debt Redemption OPEB Debt Redemption Total
ACTUAL 12 PAY 13 1,388,536.06 146,394.59 691,149.23 161,722.92 2,387,802.80
PROPOSED 13 PAY 14 1,201,752.03 149,737.61 692,167.30 163,066.10 2,206,723.04
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
(186,784.03) 3,343.02 1,018.07 1,343.18
-13.45% 2.28% 0.15% 0.83%
(181,079.76)
-7.58%
ISD #300 What are the main variables that cause property tax increases and decreases? • • • •
Changes in market values, classification or class rates Change in property tax credits Voter approved referendums Increases or decreases in levy amounts caused by changes in state funding formulas
ISD #300 What are the main variables that cause property tax increases and decreases? (cont.) • •
The value of your property may increase or decrease The value of other properties may increase or decrease and change the share that your property is of the total tax base, whether your property’s value changed or not.
ISD #300 Whereas, Pursuant to Minnesota Statutes the School Board of LaCrescentHokah School District, LaCrescent, Minnesota, is authorized to make the following proposed tax levies for general purposes: General Fund $1,201,752.03 Community Service 149,737.61 Debt Service 692,167.30 OPEB Debt Service 163,066.10 Total Proposed School Tax Levy $2,206,723.04 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2013 to be collected in 2014 is set at $2,206,723.04. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
Truth In Taxation Public Meeting 7:00 p.m. December 18, 2013
at the HS/MS Media Center 1301 Lancer Blvd. LaCrescent, MN 55947
ISD #300 Truth in Taxation Public Meeting Each taxing jurisdiction is required to hold a public meeting. You are here tonight as part of the school district’s public meeting process.
ISD #300 Requirements of the Truth in Taxation Public Meeting
1. Provide and discuss information on the budget (2013-2014). 2. Discuss proposed property tax levy for taxes payable calendar year 2014 3. Public must be given a reasonable amount of time to comment on the proposed property tax levy and budget and to ask questions. - Minnesota Statute 275.065
ISD #300 Points to Remember: 1.
2. 3.
Revenue formulas are set by the State Legislature except for voter approved referendums. Local Levy and State Aid mix are set by the State Legislature. An increase in local taxes does not necessarily mean an increase in revenues for the school district.
ISD #300 School District Budget Current School Year 2013-2014
Fund Accounting Overview 2013-2014 GENERAL FUND (Fund 01) • Revenue is based on student enrollment • The local referendum levy is part of the General Fund • Provides for classroom instruction, instructional supplies and equipment, and other educational activities • Special Education, and State / Federal Mandated Programs • Extra-curricular Activities • Pupil Transportation • Facilities Operation and Maintenance • Capital Expenditures and Improvements • Health and Safety Code Compliance FOOD SERVICE (Fund 02) • School Breakfast and Lunch Program
Fund Accounting Overview (cont.) 2013-2014 COMMUNITY SERVICE (Fund 04) • Levy is based on adult population in the District • Early childhood levy is based on the number of children under 5 years of age • Provides for enrichment programs for any age level that are not part of the K-12 education program • Early Childhood Family Education • School Readiness • Adult Basic Education DEBT SERVICE (Fund 07) • Based on annual debt retirement schedules for the district’s outstanding bonded indebtedness. Annual levy is for the payment of principal and interest on bonds as due. Current debt is a result of the voter approved Bond Issue for the 1999A general obligation school building bonds.
Fund Accounting Overview (cont.) 2013-2014 Post-Employment Benefits Irrevocable Trust Fund (Fund 45) • This trust fund is used for reporting resources set aside and held in an irrevocable trust arrangement for post-employment benefits. District contributions to this fund must be expensed to an operating fund. Post-Employment Benefits Debt Service Fund (Fund 47) • Activity to record levy proceeds and the repayment of the Other Post-employment Benefits (OPEB) bonds will be accounted for in this fund. Based on annual debt retirement schedules for the district’s outstanding bonded indebtedness. Annual levy is for the payment of principal and interest on bonds as due.
ISD #300 Revenue Budget 12-13 actual
13-14 budget
% change
General Fund
12,583,512
12,229,121
-2.8%
Food Service
638,057
605,300
-5.1%
Community Service
620,012
569,014
-8.2%
Debt Service
649,113
725,223
11.7%
19,928
15,000
-24.7%
149,133
161,662
8.4%
14,659,755
14,305,320
-2.4%
Irrevocable Trust OPEB
OPEB Debt Service
ISD #300 General Fund Revenue Budget Where Do Our School Revenues Come From?
ISD #300 Expenditure Budget 12-13 actual
13-14 budget
% change
General Fund
12,587,851
13,364,682
6.2%
Food Service
617,674
707,394
14.5%
Community Service
553,888
589,605
6.4%
Debt Service
692,063
692,188
0.0%
Irrevocable Trust OPEB
151,122
128,034
-15.3%
OPEB Debt Service
163,995
160,070
-2.4%
14,766,593
15,641,973
5.9%
ISD #300 HOW ARE GENERAL FUND DOLLARS SPENT? Expenses incurred in the operation of the district are paid from the General Fund. The following schedule relates how the dollars allocated to the General Fund are spent:
District and School Administration District Support Services Regular Instruction Vocational Instruction Special Education and Alternative Delivery Instruction Instructional Support Services Pupil Support Services Site, Buildings, and Equipment Fiscal and Other Fixed Cost Programs Total General Fund
6.4% 2.3% 43.6% 1.2% 20.7% 5.9% 7.7% 11.9% 0.4% 100.0%
ISD #300 General Fund Expenditure Budget What Do Our Expenditures Pay For?
ISD #300 Projected General Fund Balance at June 30, 2014 Restricted Staff Development Deferred Maintenance Health & Safety Operating Capital Alternative Learning Center
115,477 (1,112) 230,868 64,536
Gifted and Talented Safe Schools Crime Levy
29,481 150,127
Assigned
112,241
Unassigned
1,934,727
Total
2,636,345
ISD #300 School District Levy 2013 Payable 2014 2014-2015 School Year Fiscal Year 2015
ISD #300 Authority for School Levies
A School District Tax Levy must be either: Set by State Formula -or Voter Approved
ISD #300 Factors Impacting Tax Change Issues Driven by Legislative Decisions: Change in sales ratio (impacting ANTC) Change in tax capacity rate structure Laws mandating code compliance (Health & Safety and Buildings)
Issues Determined by District Voters: Voter approved building bond issue Voter approved excess levy referendum
ISD #300 Factors Impacting Tax Change (cont.) Local Factors:
Inflationary pressure on real estate market Abatements Property improvements not previously taxed Change in individual assessed market value Possible change in property classification (e.g. homestead to rental)
ISD #300 How will your 2014 school taxes be spent? General Fund Provides additional funding for district instructional programs by means of the approved excess referendum. Also provides funds for operating capital expenses, including facilities, instructional, textbooks and technology. Includes Safe Schools and Health & Safety project levies. Community Education Fund Levy for Community Education Programs: Debt Service Levy for repayment of principal and interest on district building debt: OPEB Debt Service Levy for repayment of principal and interest on district OPEB debt: Total Levy Before Credits:
Percent
55% 7% 31% 7% 100.0%
ISD #300 LEVY LIMITATION AND CERTIFICATION 2013 Payable 2014 Comparison of Certified Payable 2013 Levy with Proposed Payable 2014 Levy GROSS LEVIES BY FUND General Fund Community Services Debt Redemption OPEB Debt Redemption Total
ACTUAL 12 PAY 13 1,388,536.06 146,394.59 691,149.23 161,722.92 2,387,802.80
PROPOSED 13 PAY 14 1,201,752.03 149,737.61 692,167.30 163,066.10 2,206,723.04
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
(186,784.03) 3,343.02 1,018.07 1,343.18
-13.45% 2.28% 0.15% 0.83%
(181,079.76)
-7.58%
ISD #300 What are the main variables that cause property tax increases and decreases? • • • •
Changes in market values, classification or class rates Change in property tax credits Voter approved referendums Increases or decreases in levy amounts caused by changes in state funding formulas
ISD #300 What are the main variables that cause property tax increases and decreases? (cont.) • •
The value of your property may increase or decrease The value of other properties may increase or decrease and change the share that your property is of the total tax base, whether your property’s value changed or not.
ISD #300 Whereas, Pursuant to Minnesota Statutes the School Board of LaCrescentHokah School District, LaCrescent, Minnesota, is authorized to make the following proposed tax levies for general purposes: General Fund $1,201,752.03 Community Service 149,737.61 Debt Service 692,167.30 OPEB Debt Service 163,066.10 Total Proposed School Tax Levy $2,206,723.04 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2013 to be collected in 2014 is set at $2,206,723.04. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
