ISD 84 â Sleepy Eye
LaCrescent-Hokah School District 2014 Payable 2015
Truth In Taxation Public Meeting 7:00 p.m. December 17, 2014
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 (2014-2015). 2. Discuss proposed property tax levy for taxes payable calendar year 2015 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 or board 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 2014-2015
Fund Accounting Overview 2014-2015 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.) 2014-2015 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 / Preschool • School Aged Childcare • Adult Basic Education DEBT SERVICE (Fund 07) • 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.) 2014-2015 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.
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.
ISD #300 Revenue Budget Comparison of actual 13-14 revenue budget with revised 14-15 revenue budget Revenue Budget BY FUND
ACTUAL
REVISED
DOLLAR
PERCENT
13-14
14-15
DIFFERENCE
DIFFERENCE
General Fund
12,374,198
12,070,441
(303,757)
-2.45%
Food Service
640,835
617,800
(23,035)
-3.59%
Community Services
631,000
609,167
(21,833)
-3.46%
Debt Redemption
714,143
692,167
(21,976)
-3.08%
3,161
10,600
7,439
***
166,448
163,066
(3,382)
-2.03%
14,529,785
14,163,241
(366,544)
-2.52%
OPEB Trust Account OPEB Debt Redemption Total
ISD #300 General Fund Revenue Budget Where Do Our School Revenues Come From?
revised budget 11.30.14
ISD #300 Expenditure Budget Comparison of actual 13-14 expenditure budget with revised 14-15 expenditure budget
Expenditure Budget BY FUND
ACTUAL
REVISED
DOLLAR
PERCENT
13-14
14-15
DIFFERENCE
DIFFERENCE
General Fund
13,601,241
13,167,777
(433,464)
-3.19%
Food Service
627,930
704,198
76,268
12.15%
Community Services
591,367
642,235
50,868
8.60%
Debt Redemption
691,988
690,088
(1,900)
-0.27%
OPEB Trust Account
122,856
201,351
78,495
63.89%
OPEB Debt Redemption
158,995
162,145
3,150
1.98%
15,794,377
15,567,794
(226,583)
-1.43%
Total
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
6.8% 2.7% 43.9% 1.3% 22.3% 5.7% 7.7% 9.2% 0.5% 100.0%
revised budget 11.30.14
ISD #300 General Fund Expenditure Budget What Do Our Expenditures Pay For?
revised budget 11.30.14
ISD #300 Projected General Fund Balance at June 30, 2015 Restricted Staff Development Deferred Maintenance Health & Safety Operating Capital Alternative Learning Center
0 208,833 2360 247,128 1,475
Gifted and Talented Safe Schools Crime Levy
32,525 195,146
Assigned
Unassigned Total
0
760,060 1,447,527
ISD #300 School District Levy 2014 Payable 2015 2015-2016 School Year Fiscal Year 2016
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 Board can approve excess levy referendum up to the 1st $300 per pupil
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 2015 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. 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:
Percent
Total Levy Before Credits: This is an approximate distribution depending on final certification .
57.05% 6.62% 29.50% 6.83% 100.00%
ISD #300 OPTION 1 State Department of Education calculated Maximum Levy Limitation LEVY LIMITATION AND CERTIFICATION 2014 Payable 2015 Comparison of Certified Payable 2014 Levy with Proposed Payable 2015 Levy
GROSS LEVIES BY FUND
General Fund
ACTUAL 13 PAY 14
PROPOSED 14 PAY 15
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
1,201,752.03
1,400,777.05
199,025.02
16.56%
Community Services
149,737.61
156,539.87
6,802.26
4.54%
Debt Redemption OPEB Debt Redemption
692,167.30
697,135.24
4,967.94
0.72%
163,066.10
161,383.30
(1,682.80)
-1.03%
2,206,723.04
2,415,835.46
209,112.42
9.48%
Total
ISD #300 OPTION 2 Includes under levy of General Fund Safe Schools and Community Education School Aged Child Care special needs LEVY LIMITATION AND CERTIFICATION 2014 Payable 2015 Comparison of Certified Payable 2014 Levy with Proposed Payable 2015 Levy
GROSS LEVIES BY FUND
General Fund
ACTUAL 13 PAY 14
PROPOSED 14 PAY 15
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
1,201,752.03
1,355,424.25
153,672.22
12.79%
Community Services
149,737.61
149,737.61
-
0.00%
Debt Redemption OPEB Debt Redemption
692,167.30
697,135.24
4,967.94
0.72%
163,066.10
161,383.30
(1,682.80)
-1.03%
2,206,723.04
2,363,680.40
156,957.36
7.11%
Total
ISD #300 Levy Certification History Option 1 $2,450,000 $2,400,000 $2,300,000
2.56%
2.31%
$2,350,000 2.46%
-7.58%
-1.36%
9.48%
$2,250,000 $2,200,000 $2,150,000 $2,100,000 Pay 2009 Series1 $2,251,582
Pay 2010
Pay 2011
Pay 2012
Pay 2013
Pay 2014
$2,306,992
$2,360,226
$2,328,094
$2,387,803
$2,206,723
Proposed 2015 $2,415,835
ISD #300 Levy Certification History Option 2 $2,450,000 $2,400,000 $2,350,000 $2,300,000 $2,250,000 $2,200,000 $2,150,000 $2,100,000
2.56%
2.31%
2.46%
Pay 2009 Series1 $2,251,582
-7.58%
-1.36%
7.11%
Pay 2010
Pay 2011
Pay 2012
Pay 2013
Pay 2014
$2,306,992
$2,360,226
$2,328,094
$2,387,803
$2,206,723
Proposed 2015 $2,363,680
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 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 OPTION 1 State Department of Education calculated Maximum Levy Limitation
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 1,400,777.05 Community Service 156,539.87 Debt Service 697,135.24 OPEB Debt Service 161,383.30 Total Proposed School Tax Levy $2,415,835.46 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2014 to be collected in 2015 is set at $2,415,835.46. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
ISD #300 OPTION 2 Includes under levy of General Fund Safe Schools and Community Education School Aged Child Care special needs
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 1,355,424.25 Community Service 149,737.61 Debt Service 697,135.24 OPEB Debt Service 161,383.30 Total Proposed School Tax Levy $2,363,680.40 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2014 to be collected in 2015 is set at $2,363,680.40. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
ISD #300
Questions
Truth In Taxation Public Meeting 7:00 p.m. December 17, 2014
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 (2014-2015). 2. Discuss proposed property tax levy for taxes payable calendar year 2015 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 or board 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 2014-2015
Fund Accounting Overview 2014-2015 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.) 2014-2015 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 / Preschool • School Aged Childcare • Adult Basic Education DEBT SERVICE (Fund 07) • 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.) 2014-2015 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.
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.
ISD #300 Revenue Budget Comparison of actual 13-14 revenue budget with revised 14-15 revenue budget Revenue Budget BY FUND
ACTUAL
REVISED
DOLLAR
PERCENT
13-14
14-15
DIFFERENCE
DIFFERENCE
General Fund
12,374,198
12,070,441
(303,757)
-2.45%
Food Service
640,835
617,800
(23,035)
-3.59%
Community Services
631,000
609,167
(21,833)
-3.46%
Debt Redemption
714,143
692,167
(21,976)
-3.08%
3,161
10,600
7,439
***
166,448
163,066
(3,382)
-2.03%
14,529,785
14,163,241
(366,544)
-2.52%
OPEB Trust Account OPEB Debt Redemption Total
ISD #300 General Fund Revenue Budget Where Do Our School Revenues Come From?
revised budget 11.30.14
ISD #300 Expenditure Budget Comparison of actual 13-14 expenditure budget with revised 14-15 expenditure budget
Expenditure Budget BY FUND
ACTUAL
REVISED
DOLLAR
PERCENT
13-14
14-15
DIFFERENCE
DIFFERENCE
General Fund
13,601,241
13,167,777
(433,464)
-3.19%
Food Service
627,930
704,198
76,268
12.15%
Community Services
591,367
642,235
50,868
8.60%
Debt Redemption
691,988
690,088
(1,900)
-0.27%
OPEB Trust Account
122,856
201,351
78,495
63.89%
OPEB Debt Redemption
158,995
162,145
3,150
1.98%
15,794,377
15,567,794
(226,583)
-1.43%
Total
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
6.8% 2.7% 43.9% 1.3% 22.3% 5.7% 7.7% 9.2% 0.5% 100.0%
revised budget 11.30.14
ISD #300 General Fund Expenditure Budget What Do Our Expenditures Pay For?
revised budget 11.30.14
ISD #300 Projected General Fund Balance at June 30, 2015 Restricted Staff Development Deferred Maintenance Health & Safety Operating Capital Alternative Learning Center
0 208,833 2360 247,128 1,475
Gifted and Talented Safe Schools Crime Levy
32,525 195,146
Assigned
Unassigned Total
0
760,060 1,447,527
ISD #300 School District Levy 2014 Payable 2015 2015-2016 School Year Fiscal Year 2016
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 Board can approve excess levy referendum up to the 1st $300 per pupil
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 2015 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. 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:
Percent
Total Levy Before Credits: This is an approximate distribution depending on final certification .
57.05% 6.62% 29.50% 6.83% 100.00%
ISD #300 OPTION 1 State Department of Education calculated Maximum Levy Limitation LEVY LIMITATION AND CERTIFICATION 2014 Payable 2015 Comparison of Certified Payable 2014 Levy with Proposed Payable 2015 Levy
GROSS LEVIES BY FUND
General Fund
ACTUAL 13 PAY 14
PROPOSED 14 PAY 15
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
1,201,752.03
1,400,777.05
199,025.02
16.56%
Community Services
149,737.61
156,539.87
6,802.26
4.54%
Debt Redemption OPEB Debt Redemption
692,167.30
697,135.24
4,967.94
0.72%
163,066.10
161,383.30
(1,682.80)
-1.03%
2,206,723.04
2,415,835.46
209,112.42
9.48%
Total
ISD #300 OPTION 2 Includes under levy of General Fund Safe Schools and Community Education School Aged Child Care special needs LEVY LIMITATION AND CERTIFICATION 2014 Payable 2015 Comparison of Certified Payable 2014 Levy with Proposed Payable 2015 Levy
GROSS LEVIES BY FUND
General Fund
ACTUAL 13 PAY 14
PROPOSED 14 PAY 15
DOLLAR DIFFERENCE
PERCENT DIFFERENCE
1,201,752.03
1,355,424.25
153,672.22
12.79%
Community Services
149,737.61
149,737.61
-
0.00%
Debt Redemption OPEB Debt Redemption
692,167.30
697,135.24
4,967.94
0.72%
163,066.10
161,383.30
(1,682.80)
-1.03%
2,206,723.04
2,363,680.40
156,957.36
7.11%
Total
ISD #300 Levy Certification History Option 1 $2,450,000 $2,400,000 $2,300,000
2.56%
2.31%
$2,350,000 2.46%
-7.58%
-1.36%
9.48%
$2,250,000 $2,200,000 $2,150,000 $2,100,000 Pay 2009 Series1 $2,251,582
Pay 2010
Pay 2011
Pay 2012
Pay 2013
Pay 2014
$2,306,992
$2,360,226
$2,328,094
$2,387,803
$2,206,723
Proposed 2015 $2,415,835
ISD #300 Levy Certification History Option 2 $2,450,000 $2,400,000 $2,350,000 $2,300,000 $2,250,000 $2,200,000 $2,150,000 $2,100,000
2.56%
2.31%
2.46%
Pay 2009 Series1 $2,251,582
-7.58%
-1.36%
7.11%
Pay 2010
Pay 2011
Pay 2012
Pay 2013
Pay 2014
$2,306,992
$2,360,226
$2,328,094
$2,387,803
$2,206,723
Proposed 2015 $2,363,680
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 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 OPTION 1 State Department of Education calculated Maximum Levy Limitation
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 1,400,777.05 Community Service 156,539.87 Debt Service 697,135.24 OPEB Debt Service 161,383.30 Total Proposed School Tax Levy $2,415,835.46 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2014 to be collected in 2015 is set at $2,415,835.46. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
ISD #300 OPTION 2 Includes under levy of General Fund Safe Schools and Community Education School Aged Child Care special needs
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 1,355,424.25 Community Service 149,737.61 Debt Service 697,135.24 OPEB Debt Service 161,383.30 Total Proposed School Tax Levy $2,363,680.40 Now Therefore, Be it resolved by the School Board of LaCrescent-Hokah School District, LaCrescent, Minnesota, that the levy to be levied in 2014 to be collected in 2015 is set at $2,363,680.40. The clerk of the LaCrescent-Hokah School Board is authorized to certify the proposed levy to the County Auditor of Houston County, Minnesota.
ISD #300
Questions
