TRUTH IN TAXATION LEVY INFORMATION D E C E M B E R 2 , 2 0 1 9 - PowerPoint PPT Presentation

Marshall Public Schools District TRUTH IN TAXATION LEVY INFORMATION D E C E M B E R 2 , 2 0 1 9

Levy Cycles

Fund Accounting Overview All school districts’ budgets are divided into separate funds, as required by law. For our district, 6 funds: General Fund 1  Food Service Fund 2  Transportation Fund 3  Community Services Fund 4  Capital Outlay Fund 5  Debt Service Fund 7 

MARSHALL PUBLIC SCHOOLS DISTRICT BUDGET Comparison of 18-19 Actual and 19-20 Original Budget

MARSHALL PUBLIC SCHOOLS 2019 ACTUAL and 2020 Original BUDGET REVENUES 18-19 Actual 19-20 Original Budget % Change General Funds $29,501,751.10 $30,249,650.00 2.54% Foodservice $1,759,682.71 $1,827,300.00 3.84% Transportation $1,633,187.51 $1,658,372.00 1.54% Community Service $2,395,192.53 $2,304,253.00 -3.80% Capital Outlay $1,759,971.69 $1,708,684.00 -2.91% Debt Service $3,082,549.25 $3,363,105.00 9.10%

2019-2020 Budget Revenue Comparison by Fund 19-20 ORIGINAL BUDGET Debt Service Capital Outlay 8% 4% Community Service 6% Transportation 4% Foodservice 4% General Funds 74%

General Fund Revenues by Source 2019-2020 Federal Sources Property Tax Tuition and 3% 9% Contracts 3% Other Local Sources 3% State Sources 2018-2019 82% Federal Sources Property Tax Tuition and 3% 9% Contracts 3% Other Local Sources 3% State Sources 82%

MARSHALL PUBLIC SCHOOLS 2019 ACTUAL and 2020 Original BUDGET EXPENDITURES 18-19 Actual 19-20 Original Budget Change General Funds $29,483,339.08 $29,890,130.00 1.38% Foodservice $1,717,501.56 $1,820,050.00 5.97% Transportation $1,700,761.94 $1,733,413.00 1.92% Community Service $2,213,502.28 $2,286,003.00 3.28% Capital Outlay $1,651,929.49 $1,594,788.00 -3.46% Debt Service $2,680,947.50 $3,281,968.00 22.42%

2019-2020 BUDGET EXPENDITURES COMPARISON BY FUND 19-20 ORIGINAL BUDGET Debt Service Capital Outlay 8% 4% Community Service 6% Transportation 4% Foodservice 4% General Funds 74%

General Fund Expenditures by Program Program Amount Percent 000 Administration $900,840 3.01% 100 District Support Services $1,053,242 3.52% 200 Regular Instruction $15,195,867 50.84% 300 Vocational Instruction $616,563 2.06% 400 Special Education $5,736,509 19.19% 600 Instructional Support $2,129,625 7.12% 700 Pupil Support $1,529,112 5.12% 800 Sites and Buildings $2,632,372 8.81% 900 Fiscal and Other $96,000 0.32% 800 Sites and Buildings 900 Fiscal and Other 000 Administration 8.81% 0.32% 3.01% 100 District Support Services 700 Pupil Support 3.52% 5.12% 600 Instructional Support 7.12% 200 Regular Instruction 50.84% 400 Special Education 19.19% 300 Vocational Instruction 2.06%

General Fund Expenditures by Object Object Code Amount Percent 100 Salaries $19,849,100 66.41% 200 Benefits $5,801,405 19.41% 300 Purchased Services $3,125,823 10.46% 400 Supplies and Materials $743,595 2.49% 500 Equipment $307,147 1.03% 800 Other Expenditures $63,060 0.21% 500 Equipment 400 Supplies and Materials 800 Other Expenditures 1.03% 2.49% 0.21% 300 Purchased Services 10.46% 200 Benefits 19.41% 100 Salaries 66.41%

Independent School District #413 District Revenues and Expenditures Actual for FY 2019, Budget for FY 2020

Tax Impact-Levy Comparison

Levy Distribution by Fund OPEB Debt Service, $0.00 0% General, $3,080,612.32 42% General Debt Service, $4,163,264.74 56% Community Service, $175,229.36 2%

Factors Causing Changes from Payable 2019 to payable 2020 Many factors can cause the tax bill for an individual property to increase or decrease from year to year:  Change in market values  State legislation  Increases or decreases in enrollment  Voter approved referendums  School Board actions

Overview of Proposed Levy Payable in 2019 • The total 2020 proposed levy will increase from 2019 by $664,937.87 or 9.84% • This is the total proposed levy, individual increases will vary. • State law requires that we explain the reasons for the major increases or decreases in the levy

Explanation of General Fund Levy Changes • Total General Fund Decrease: -$419,990.98 • Category: Long Term Facilities • Decreased $411,452 • Majority of this amount is for our LTFM Bond principal and interest payment for FY2021. This was shifted from General Fund to Debt Services. • Category: Operating Capital • Decreased $8,239 • State Aid will be increasing to off set this. • Other areas increased slightly due to increase enrollment.

Explanation of Community Service Levy Changes • Total Community Service Increase : $371.28 • Category: Early Child Family Education • There was an FY2020 Early Childhood adjustment of $396.06 along with some other minor increase and decrease adjustments in other areas.

Explanation of Debt Service Levy Changes • Total Debt Service Increase: $1,219,019.26 • Category: Debt Service Aid • Increased $1,225,980 • $1,217,580 was for the 2019 new building bonds premium and interest payment for FY2021 • Category: Long Term Facilities • Increased $263,920 • Majority of this amount is for our LTFM Bond principal and interest payment for FY2021. This was shifted from General Fund to Debt Services. • Category: Debt Excess • Decreased -$265,728 • This is in excess to what we are allowed or were approved to retain.

SCHOOL BUILDING BOND AGRICULTURAL CREDIT • The Ag2School tax credit increases from 40 percent to 50 percent in 2020 and is scheduled to scale to 70 percent in 2023. This permanent law, initially enacted in 2017 by the Minnesota Legislature, affects all existing Fund 7 debt levies, except OPEB bonds. • “ Credit amount - For each qualifying property, the school building bond agricultural credit is equal to 50 percent of the property's eligible net tax capacity multiplied by the school debt tax rate determined under section 275.08, subdivision 1b. • Credit reimbursements - The county auditor shall determine the tax reductions allowed under this section within the county for each taxes payable year and shall certify that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted under section 275.29. Any prior year adjustments shall also be certified on the abstracts of tax lists. The commissioner shall review the certifications for accuracy, and may make such changes as are deemed necessary, or return the certification to the county auditor for correction. The credit under this section must be used to reduce the school district net tax capacity-based property tax as provided in section 273.1393. • Payment - The commissioner of revenue shall certify the total of the tax reductions granted under this section for each taxes payable year within each school district to the commissioner of education, who shall pay the reimbursement amounts to each school district as provided in section 273.1392.

AG2School Credit in Marshall Public School District • Total savings in Marshall Public School District in 2019 total was $304,736.36. • Total proposed savings in Marshall Public School District in 2020 total was $519,654.28. • It is important to note, this credit is not on the levy certification, but will show on the ag land owners property tax statement. This is a line item at the top of the statement.

AG2School Credit in Marshall Public School District If the AG2School Credit was included in the levy information, there would have only been a $145,283.59 or 2.1% increase in the total tax levy for 2019 Payable in 2020!

ISD 413, Marshall Whereas, Pursuant to Minnesota Statutes the School Board of Independent School District No. 413, Marshall, Minnesota, is authorized to make the following proposed tax levies for general purposes: General Fund $3,080,612.32 Community Service $175,229.36 Debt Service $4,163,264.74 Total Proposed School Tax Levy $7,419,106.42 Now Therefore, Be it resolved by the School Board of Independent School District No. 413, Marshall, Minnesota, that the amount to be levied in 2019 to be collected in 2020 is set at $7,419,106.42. The clerk of the Marshall School Board is authorized to certify the proposed levy to the County Auditor of Lyon County, Minnesota.

Proposed Levy Payable in 2020 • Schedule of events in approval of district’s 2019 (Payable 2020) tax levy  Beginning of September: Dept. of Education prepared and distributed first draft of levy limit worksheets setting maximum authorized levy  September 16 th : School board approved proposed levy amounts  Mid-November : County mailed “Proposed Property Tax Statements” to all property owners  December 2 rd : Public hearing on proposed levy at regular meeting  School board will certify final levy amounts at the December 16 th meeting.

ISD 413, Marshall Public Comments and Questions

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