Taxation HearingEastern Carver County Schools

December 12, 2013

Requirement for Tax Hearing• Held during regular meeting at 6:00 p.m. or later• All school districts must hold a meeting• Levy may be adopted at same meeting• Review of current year budget• Prior year actual revenue and expense• Proposed levy discussed including:

– Percent increase– Specific purpose and reasons for increases

• Public allowed to comment

Agenda• Background

– School Funding– Property Tax Levies– Budgets

• District Financials– 2013 Actual– 2014 Adopted Budget

• Proposed Taxes – 2013 Payable 2014 Levy• Public Comment

Background

School District Revenues & Taxes

• State sets funding formulas• State sets tax policy for school districts• State sets maximum authorized property tax levy• State authorizes school board to submit referendums

for operating and capital needs to voters for approval

State Funding per Pupil Unit

YearGross Formula

Allowance

Changes in Pupil

Weighting

Net Increase Excluding Roll-ins

Net Percent Increase

2004-05 $4,601 $0 0.0%2005-06 4,783 182 4.0%2006-07 4,974 191 4.0%2007-08 5,074 100 2.0%2008-09 5,124 50 1.0%2009-10 5,124 0 0.0%2010-11 5,124 0 0.0%2011-12 5,174 50 1.0%2012-13 5,224 50 1.0%2013-14 5,302 78 1.5%2014-15 5,806 $424 80 1.5%Average (10 years)

Fund Accounting

Components• Record revenues and

expenses in different funds

• Each fund has a definite purpose

• Tax levy is one source of revenue for some of the funds

Fund Categories• General• Food Service• Community Service• Building

Construction• Debt Service• Trust• Internal Service

How are School Taxes Spent?General 48.91% Provides funding for regular and special

education instructional programs, transportation,

equipment, building maintenance and health & safety

Community Service 1.90%

Levy for community education services

Debt Service – General & OPEB 49.19%

Levy for principal & interest

Total 100.0%

General Levy

• Student enrollment• Voter approved operating referenda• Transportation• Career and Technical• Safe Schools• Facilities

– Building age & square footage– Operating Capital – Health & Safety– Alternative Facilities

Community & Debt Service Levies

• Community Service– Based on adult population of District– Early childhood based on number of children < 5 years

• Debt Service– Levy to pay principal & interest– Voter approved building projects– Alternative facility bonds

Financials2013 Actual and 2014 Adopted Budget

FY 2013 Actual

FundFY 2012

Fund Balance

FY 2013 Revenue

FY 2013 Expense

FY 2013 Fund

Balance

General 14,282,689 90,426,057 90,168,253 14,540,493

Food Service 756,462 4,845,068 4,664,837 936,693

Community Service 686,484 8,117,645 7,945,233 858,896

Capital Projects & Building Fund

10,403,267 11,182 2,813,988 7,600,461

Debt Service * 48,907,989 91,545,046 66,077,829 74,375,206

Proprietary & Trust 6,154,980 2,275,280 1,428,466 7,001,794

Total 81,191,871 197,220,278 173,098,606 105,313,543

* Revenue includes refunding of 2007A bonds     

FY 2014 Adopted Revenue Budget

Gen-eral

Fund$94,389,38569%

Food Ser-vice Fund

$4,773,3203%

Com-mu-nitySer-vice Fund

$7,920,8186%

Con-struc-tion Fund0%

Debt Ser-vice Fund

$19,416,56614%

OPEB Debt Ser-vice Fund

$716,3371%

Trust Funds$ 9,790,400

7%

2013-2014 Revenues by Fund

FY 2014 Adopted Expense Budget

General Fund

$96,895,057 69%

Food Service

Fund$4,929,5

283%

Com-munity

Svc Fund

$7,847,3266%

Construc-tion Fund$4,677,1

57 3%

Debt Service

Fund$17,145,

316 12%

OPEB Debt Service Fund$733,550

1% Trust Funds$8,391,392

6%

2013-2014 Expenditures By Fund

FY 2014 General Fund Revenue Sources

Local Property Taxes $17,678,84719%

State Sources 71,772,13876%

Federal Sources 2,681,375 3%

Other2,257,025

2%

FY 2014 General Fund Expense Categories

Salaries$61,382,28663%

Employee Benefits $16,044,73617%

Purchased Services $13,588,77414%

Supplies & Materials $3,707,2024% Capital Outlay

$1,920,5112%

Other Expenditures $251,5480%

Proposed Taxes

School District Tax LevyCategory 2012 Pay 2013

FY 20142013 Pay 2014

FY 2015Difference % Change

General Fund RMV Levies

13,713,909 12,510,886 -1,203,023 -8.8%

General Fund NTC Levies

4,762,166 6,277,860 1,515,694 31.8%

Total General Fund

18,476,075 18,788,746 312,671 1.7%

Community Service

820,806 731,301 -89,505 -10.9%

Debt Service 18,400,154 18,122,401 -277,753 -1.5%

OPEB 715,837 770,490 54,653 7.6%

Total Levy 38,412,872 38,412,938 66 0.0%

District 112 Levy

05Pay06 FY2007

06Pay07 FY2008

07Pay08 FY2009

08Pay09 FY2010

09Pay10 FY2011

10Pay11 FY2012

11Pay12 FY2013

12Pay13 FY2014

13Pay14 FY 2015

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,0006,

966,

946

10,7

88,4

44

11,3

38,6

29

11,2

48,5

30

11,2

22,6

87

12,0

40,7

66

13,2

69,0

98

13,7

13,9

09

9,78

0,63

5

3,678,209

4,460,3854,913,359 4,648,102 5,598,342

5,584,363 3,958,4354,762,166

9,008,111

741,164

774,018699,168 797,297

850,691834,804 777,901

820,806 731,301

12,6

87,4

60

16,2

11,6

33

17,9

74,3

49

18,5

29,1

42

18,0

06,6

33

18,9

37,9

43

20,0

74,6

92

19,1

15,9

91

18,8

92,8

91

Gen-Voter Approved General-Non Voter Approved Community Ed Debt Service

Property Taxes by Year & TypePayable

YearSchool Year

Residential Homestead

Commercial Industrial

Agricultural Land & Bldg

2003 2003-04 1,466 2,269 599

2004 2004-05 1,585 2,375 589

2005 2005-06 1,433 2,139 527

2006 2006-07 1,399 2,089 515

2007 2007-08 1,624 2,372 558

2008 2008-09 1,623 2,379 564

2009 2009-10 1,590 2,337 558

2010 2010-11 1,611 2,365 563

2011 2011-12 1,830 2,693 645

2012 2012-13 1,941 2,864 689

2013 2013-14 2,028 2,978 709

2014 2014-15 2,026 3,022 744

$285

,000

Pro

pert

y V

alue

Historical School District Property Tax$2

85,0

00 P

rope

rty

Pay 03

Pay 04

Pay 05

Pay 06

Pay 07

Pay 08

Pay 09

Pay 10

Pay 11

Pay 12

Pay 13

Pay 14

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Residential Commercial Farm

School District Levies69.9% of Total School District

Levies are Voter Approved

The school board only has control over 10.8% of the District’s total levy

Voter Approved Referendum

19.09%Non-Voter Ap-proved General

23.43%

Voter Approved Capital Projects6.38%

Non-Voter Community Services 1.90%

Voter Approved Debt

44.44%

Non-Voter Approved Debt4.76%

Levy Certification – FY 2015Eastern Carver County Schools

General Fund $18,788,746.12

Community Education $731,300.56

Debt Service $18,892,891.42

Total $38,412,938.10

Public Comment

Contact

DeeDee Kahring

Director of Finance & Operations

952-556-6261

kahringd@district112.org