2010 Truth in Taxation

Truth in Taxation ReportISD 51, Foley, MinnesotaDecember 14, 2010

Presenter:

Michelle Czech, Director of Finance

Truth in Taxation Law

Minnesota’s Truth in Taxation Law requires that cities, counties and school districts follow certain steps before adopting a tax levy for the following year. One important part of that law requires a mailed notice to each property owner in the county, which describes the tax levies proposed by the city, county and school district and what percent increase (decrease) such a levy would mean in dollars.

Truth in Taxation Public Hearing

Part 2 of the law - “Truth in Taxation” Public hearing for each taxing jurisdiction Specific type of public notice

Tonight is the school district’s public hearing

Requirements of Truth inTaxation Hearing

1. Tax levy must be for taxes payable 2011 2. Discussion must include:

Current budget Proposed percent increase/decrease of levy Reasons for the increase/decrease

4. Public must be given time to comment

Minnesota Statute 275.065

Judge Randy PetersonFormer SenatorEducation Finance Committee

“As a practical matter, school districts really don’t have very much authority, any meaningful authority anyway, over their local taxing decisions. With the exception of decisions to build school buildings and the excess-levy referendums...school district taxing decisions are pretty much a matter of state law...”

School District Budget

Current School Year2010-2011

School District Funds

General Fund

Community Education Fund

Food Service Fund

Building Fund

Debt Service Fund

Budget 2010-2011

FUND DESCRIPTIONPROJECTED REVENUES

PROJECTED EXPENDITURES DIFFERENCE

2010 Total Fund Balance

General 14,314,616.00$ 14,806,779.00$ (492,163.00)$ 4,853,860.49$

Food Service 877,100.00$ 861,278.00$ 15,822.00$ 228,314.99$

Community Service 500,908.00$ 480,191.00$ 20,717.00$ 74,677.90$

Building Fund 500,000.00$ 1,585,500.00$ (1,085,500.00)$ 3,395,094.19$

Debt Service 2,825,194.00$ 2,692,848.00$ 132,346.00$ 5,780,211.36$

General Fund Based on student

enrollment Local operating

levies Transportation Special Education Capital Health and Safety Federal Grants

End of Year Adjusted Average Daily Membership

1580

1600

1620

1640

1660

1680

1700

1720

1740

1760

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

General Fund by Department

Transportation5%

Intermediate25%

High School/ALC20%

Elementary24%

Maintenance9%

Activities5%

Districtwide11%

General Fund Salaries

Salaries82%

Other18%

Community ED Fund Based on the adult

population in the District

Early Childhood is based on the number of children under 5 years of age

Participation Fees

FOOD SERVICE FUND

Based on Federal Grant of free/reduced lunch

Based on student participation

Other District Funds

Building Fund One day bond sales Elementary building project

DEBT SERVICE FUND Based on Maximum Effort Loan through

2019 Pay the District’s Bond Payments

Schools District Levy

2010 Payable 2011

2011-2012 School Year

Authority for School Levies

Set by State Formula

Board Approved within State Law

Voter Approved

How Your School Taxes Are Spent

Actual Dollars Percent

General Fund Levy Includes: 806,975.52$ 21.5%Learning Levy, Career and Technical, Safe Schools,Lease Levy, Health and Safety, Deferred Maintenance,Operating Capital, Integration, Reemployment, Transition, and Equity

Community Education Levy Includes: 98,424.47$ 2.6%Youth Enrichment Programming, Early Childhood, and HomeVisiting

Debt Service Levy Includes:Repayment of prinicipal and interest on district debt through bonds, Capital 2,846,755.00$ 75.9%Capital Loan Program

Total Levy 3,752,154.99$ 100%

Levy is Increasing by

$71,403Or

1.94%

Debt Service Levy 75.9%

Community Education Levy 2.6%

General Fund Levy 21.5%

Levy Percentage by Fund

Levy Changes for Pay 2011

Increase of $132,452 in Debt

Service

Decrease of $40,726 in Health &

Safety- General Levy

General Education Aid & Levy

Aid93%

Levy7%

2011 2011 PROPERTY TAX 2011

DESCRIPTION REVENUE LEVY SUPPORT EXPENDITURES

HEALTH & SAFETY $ 63,991.00 $ 39,887.99 100% $ 66,200.00

OPERATING CAPITAL $ 373,235.00 $ 149,988.84 40% $ 476,500.00

DEFERRED MAINTENANCE $ 75,101.00 $ 62,244.50 83% $ 7,000.00

SAFE SCHOOLS $ 58,530.00 $ 57,766.80 100% $ 57,996.00

DISABLED ACCESS $ - $ -   $ -

GIFTED AND TALENTED $ 23,139.00 $ -   $ 23,139.00

STAFF DEVELOPMENT-BLDG $ - $ -   $ 50,500.00

ACTIVITIES-DESIGNATED $ - $ -   $ 185,000.00

SEVERANCE-DESIGNATED $ - $ -   $ -

ALT LEARNING CENTER $ 65,000.00 $ -   $ 88,169.00

UNRESERVED+BASIC SKILLS $ 13,655,620.00 $ 497,087.39 4% $ 13,852,275.00

TOTAL $ 14,314,616.00 $ 806,975.52   $ 14,806,779.00

Detail of General Fund

2011 2011 PROPERTY TAX 2011

  REVENUE LEVY SUPPORT EXPENDITURES

ECFE $ 103,199.00 $ 30,462.09 30% $ 94,333.00

COMMUNITY EDUCATION $ 357,861.00 $ 67,962.38 19% $ 346,010.00

TOTAL $ 461,060.00 $ 98,424.47 21% $ 440,343.00

COMMUNITY EDUCATION

Debt Service Aid & Levy

Aid4%

Levy94%

Causes of Property Tax +/-

1. Changes in market values.

2. Changes in class rates/history.

3. Changes in state formula.

4. Voter approved Referendums.

Changes in Market Value

Market Values are final Discussed at:

Local Board Review County Board of Equalization

Final Taxable Market Value May reflect a reduction (limited value law)

May exclude improvements to property

ISD 51 Resolution