Purpose of Presentation Discussion of Current Budget (2012 13) - PDF document

Stillwater Area Public Schools Independent School District 834 Truth In Taxation Presentation Ray Queener Assistant Superintendent Business & Administrative Services December 6, 2012 Purpose of Presentation • Discussion of Current Budget (2012 ‐ 13) • Proposed Tax Levy for Taxes payable 2013 • Discussion of Proposed Percent Increase/Decrease and Reasons • Public Comment 1

Current Budget Information 2012 ‐ 13 Preliminary Budget Revenue Actual Preliminary % % of 2011-2012 2012-2013 Difference Total General Fund Levy $ 17,514,084 $ 17,937,050 2.4% 21.0% State Aid 62,305,207 61,405,646 -1.4% 71.9% Federal 3,982,571 2,917,277 -26.7% 3.4% Grants 321,035 15,000 -95.3% 0.0% Other Local Revenue 1,048,890 973,850 -7.2% 1.1% Extra/Co Curricular Fees 505,858 580,750 14.8% 0.7% Student Activities/Donations 1,590,937 1,520,000 -4.5% 1.8% General Fund $ 87,268,582 $ 85,349,573 -2.2% 100.0% Food Service Fund $ 3,745,986 $ 3,866,221 3.2% Community Service Fund 3,777,364 3,943,239 4.4% Building Construction Fund 4,002,227 2,998,024 -25.1% Debt Service Fund 10,086,664 10,077,900 -0.1% Trust and Agency Fund 25,341 - -100.0% Total Revenues $ 108,906,165 $ 106,234,957 -2.5% 2

2012 ‐ 13 Preliminary Budget Expenditures Actual Preliminary % % of 2011-2012 2012-2013 Difference Total General Fund District & School Administration $ 3,122,054 $ 3,293,018 5.5% 3.7% District Support Services 3,159,623 3,576,146 13.2% 4.0% Regular Instruction and Regular Instruction and Vocational Instruction 44,459,541 46,972,464 5.7% 52.2% Special Education 15,078,470 14,811,576 -1.8% 16.5% Instructional Support Services 4,872,233 4,261,649 -12.5% 4.7% Pupil Support Services 3,174,016 3,162,092 -0.4% 3.5% Transportation (Pupil Support) 6,490,254 5,347,481 -17.6% 5.9% Operations and Maintenance 7,402,106 7,548,958 2.0% 8.4% Prop/Liability Insurance 455,449 1,020,000 124.0% 1.1% General Fund $ 88,213,746 $ 89,993,384 2.0% 100.0% Food Service Fund $ 3,836,547 $ 3,882,377 1.2% Community Service Fund Community Service Fund 3 815 134 3,815,134 3 997 479 3,997,479 4 8% 4.8% Building Construction Fund 11,896,365 2,814,500 -76.3% Debt Service Fund 10,365,938 9,972,740 -3.8% Trust and Agency Fund 34,500 - -100.0% Total Expenditures $ 118,162,230 $ 110,660,480 -6.3% How does District 834 Compare? (2010 ‐ 11 Data) Total Operating Expenditures per Average Daily Membership (ADM) Membership (ADM) Compared to the 48 Metro School Districts • District 834: – Ranks 18 th in spending for regular instruction – Ranks 31 st in spending for district administration – Ranks 39 th in spending for school administration – Ranks 35 th in spending for operations and maintenance 3

How does District 834 Compare? • Total Operating Expenditures per Average D il M Daily Membership (ADM) b hi (ADM) – District 834 $ 9,722 per ADM – Metro Area Average $10,070 per ADM – State Average $10,237 per ADM Proposed Tax Levy Taxes Payable 2013 Funding for 2013 ‐ 14 Fiscal Year 4

Key Steps in Determining School District Property Taxes There are seven key steps in the process to d t determine District property taxes: i Di t i t t t (complete process in packet page 5) • Step 1. County Assessor • Step 2. State Legislature • Step 3. County Auditor • Step 4 State Legislature Step 4. State Legislature • Step 5. Minnesota Department of Education • Step 6. School Board • Step 7. County Auditor Class Rates • Class Rates Payable 2013 (complete table in packet page 6) – Residential Homestead R id ti l H t d • 1% up to $500,000 value • 1.25% over $500,000 value – Apartment rates • Regular and Small City 1.25% • Low ‐ income 0.75% – Commercial – Industrial – Public Utility C i l I d i l P bli U ili • Up to $150,000 1.5% Local • Over $150,000 2.0% Local 5

District 834 Proposed 2012 (Payable 2013) Property Tax Levy Pages 7 & 8 of packet (full summary in packet) (full summary in packet) • Page 7 categorizes levy by fund • Page 8 categorizes levy by voter and non ‐ voter approved – Property Values • Taxable market value decreased from $7.7 billion to $7.3 billion • Net Tax Capacity decreased from $85.1 million to $81.1 million District 834 Proposed 2012 (Payable 2013) Property Tax Levy (cont.) • General Fund – Decrease of $1,904,347 Decrease of $1 904 347 • Decrease of $73,528 Operating Capital Levy • Decrease of $173,871 for Referendum • Decrease of $1,041,227 for Abatements & Other Adjustments – Largest adjustments are in abatements & other adjustments – These are approved amounts based on actual student counts 6

District 834 Proposed 2012 (Payable 2013) Property Tax Levy (cont.) • Community Service Fund – Decrease of $6,970 • Due to changes in levy calculations for ECFE and Abatements/ Other Adjustments • Debt Service Fund – Decrease of $330,796 • Increase of $434,778 for Alternative Facilities Debt Service • Decrease of $721,665 for Initial General Debt Service • Levy reduction of $118,777 in Debt Service Excess Reduction category District 834 Proposed 2012 (Payable 2013) Property Tax Levy (cont.) • Total $29,539,502.30 or ‐ 7.1% decrease from Payable l $ d f bl 2012 7

Local Levy Trends District 834 - Total Local Levy Millions 32 31 30 29 28 27 26 2009 2010 2011 2012 2013 Tax Year Levy as Percent of Total Budget District 834 - Levy as Percent of Total Budget 50.0% 40.0% 28.7% 28.5% 30.0% 26.1% 26.7% 25.4% 20.0% 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal year 8

The Homestead Credit Shift • The 2011 legislature repealed the Homestead M Market Value Credit k t V l C dit • In its place, the Legislature implemented a Homestead Market Value Exclusion The Homestead Credit Shift • New Law ‐ homestead market value exclusion – Reduces the calculation of “tax capacity” on residential R d th l l ti f “t it ” id ti l homesteads with a market value of less than $413,000, by excluding a portion of the value from tax capacity – Formula very similar to homestead credit – maximum “exclusion” is for a $76,000 home, declining to $0 for homes with a value of $413,000 or more – The exclusion reduces the total tax base (tax capacity) for h l d h l b ( ) f the political subdivision and therefore affects tax rates and the taxes of all properties 9

Median Home Values WASHINGTON COUNTY Home Value Home Value City/Township Median 2011/Pay 2012 Median 2012/Pay 2013 Median % Chg Baytown 418,400 346,600 -17.16% May 341,200 301,800 -11.55% Stillwater Township Stillwater Township 332,000 332,000 316,500 316,500 -4.67% 4.67% West Lakeland 361,600 335,900 -7.11% Afton 334,700 330,800 -1.17% 162,500 141,900 -12.68% Bayport 191,900 180,400 -5.99% Hugo 316,700 314,400 -0.73% Lake Elmo Lakeland Shores 276,600 258,800 -6.44% Marine on St. Croix 294,600 277,800 -5.70% Stillwater City 212,400 190,700 -10.22% Oak Park Heights 188,000 165,700 -11.86% St. Mary's Point 235,500 227,700 -3.31% Lakeland 208,300 188,700 -9.41% Lake St. Croix Beach 161,000 148,900 -7.52% Woodbury Woodbury 247,400 247 400 222 200 222,200 -10.19% 10 19% Grant 332,700 319,800 -3.88% Median Average Value $271,500 $251,094 Resource: Washington County http://www.co.washington.mn.us Education Property Tax Calculation • Tax capacity = market value x class rate – $300,000 x 1% = $3,000 • Tax capacity tax = tax capacity rate x tax capacity – 21.97% x $3,000 = $659 • Referendum tax = market value x market value • Referendum tax = market value x market value referendum rate – $300,000 x 0.166% = $498 10

Education Property Tax Calculation • Education tax = tax capacity + referendum – credit – $659+ $498 = $1157 Summary of Residential School Property Taxes – District 834 Taxes Taxes Payable Payable Payable Payable Market Value 2012 2013 Change 2012 2013 % Chg. Total Total Dollars % $300,000 $300,000 0.00% $1,199 $1,156 -$43 -3.6% $300,000 $315,000 5.00% $1,199 $1,214 $15 1.3% $ $300,000 $285,000 $ -5.00% $ $1,199 $1,098 $ -$101 $ -8.4% Other examples are on page 16 of Truth in Taxation packet 11

Summary of Residential School Property Taxes – District 834 Property Tax Statement Information • Three major items affect the change in your taxes – How much will the District will be levying? • For 2013, the amount decreased 7.1% – What changed with the over ‐ all tax capacity? g p y • It decreased by approximately 5% – What changed with your individual market value? • This will vary by individual properties Education Property Tax Comparison 2,500 1,998 2,000 1,830 Property Tax Payable 1,500 1,199 1,098 999 1,000 916 2012 2013 599 012 013 549 2 3 20 500 500 20 201 201 2013 2012 0 142,500 237,500 285,000 475,000 (150,000 - 2012) (250,000 - 2012) (300,000 - 2012) (500,000 - 2012) Market Value 12

District 834 – Net Tax Capacity Trend District 834 - Net Tax Capacity Millions 94 92 90 88 86 84 82 80 78 78 76 74 2007 2008 2009 2010 2011 Tax Year District 834 – Market Value Trend District 834 - Referendum Market Value Billions 8 8 8 8 8 7 7 7 7 7 7 2007 2008 2009 2010 2011 Tax Year 13