2010 truth in taxation
TRANSCRIPT
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Truth in Taxation ReportISD 51, Foley, MinnesotaDecember 14, 2010
Presenter:
Michelle Czech, Director of Finance
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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.
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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
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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
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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...”
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School District Budget
Current School Year2010-2011
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School District Funds
General Fund
Community Education Fund
Food Service Fund
Building Fund
Debt Service Fund
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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$
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General Fund Based on student
enrollment Local operating
levies Transportation Special Education Capital Health and Safety Federal Grants
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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
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General Fund by Department
Transportation5%
Intermediate25%
High School/ALC20%
Elementary24%
Maintenance9%
Activities5%
Districtwide11%
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General Fund Salaries
Salaries82%
Other18%
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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
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FOOD SERVICE FUND
Based on Federal Grant of free/reduced lunch
Based on student participation
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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
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Schools District Levy
2010 Payable 2011
2011-2012 School Year
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Authority for School Levies
Set by State Formula
Board Approved within State Law
Voter Approved
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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%
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Levy is Increasing by
$71,403Or
1.94%
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Debt Service Levy 75.9%
Community Education Levy 2.6%
General Fund Levy 21.5%
Levy Percentage by Fund
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Levy Changes for Pay 2011
Increase of $132,452 in Debt
Service
Decrease of $40,726 in Health &
Safety- General Levy
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General Education Aid & Levy
Aid93%
Levy7%
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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 5.6% $ 14,806,779.00
Detail of General Fund
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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
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Debt Service Aid & Levy
Aid4%
Levy94%
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Causes of Property Tax +/-
1. Changes in market values.
2. Changes in class rates/history.
3. Changes in state formula.
4. Voter approved Referendums.
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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
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ISD 51 Resolution