Willmar Public Schools Willmar Public Schools Preliminary Levy Certification 2020 Payable 2021 September 28, 2020
Willmar Public Schools Willmar Public Schools What is the levy? • A levy is the amount of money a school district intends to raise from property taxes in the upcoming year. • School district levies are limited by state statute and are either based on statutory formulas or provide revenue for specific costs. • The estimated data provided by districts determines which programs a district can levy for and how much revenue the levies will generate. 2
Willmar Public Schools Willmar Public Schools What is the levy? What does it do for us? • Provides about 10% of our overall operating revenues • Includes voter-approved levies as well as state-authorized levies • Allows the District to provide quality educational programming NOTE: Picture taken prior to COVID-19 3
Willmar Public Schools Willmar Public Schools School Funding is Highly Regulated • State sets formulas which determine revenue; most revenue is based on specific amounts per pupil • State sets tax policy for local schools • State sets maximum authorized property tax levy • State authorizes school board to submit referendums for operating and capital needs to voters for approval 4
Willmar Public Schools Willmar Public Schools What is levy certification? • A process that involves communication between the Minnesota Department of Education (MDE), school districts, and county auditors to verify the appropriate amount of property taxes that counties should collect from tax payers on behalf of schools. • The preliminary certification by the School Board is the first step of a process that will result in the assessment of taxes on local property taxpayers. • Final levy cannot be more than preliminary levy, except for amounts approved by voters. 5
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Key Dates for Levy Certification Date Description Summer 2020 MDE collects data from school districts using the Levy Information System September 8, 2020 MDE releases levy limits to school districts September 30, 2020 Deadline for school districts to submit levy changes to MDE Deadline for school boards to certify preliminary property tax levies to home county auditor November 24, 2020 Deadline for county auditor to prepare and county treasurer to deliver by mail a notice of proposed property taxes for all taxing authorities to each tax payer Nov 25–Dec 28, 2020 Truth in Taxation hearing must be held after Nov 24, but before the final levy is adopted • Meeting must take place at 6:00pm or later and the public must be allowed to speak December 28, 2020 Deadline for school districts to certify final adopted levies to home county auditor 6
Willmar Public Schools Willmar Public Schools The Levy Cycle Certified in 2020 PAY 2021 for FY 2022 Property owners pay School districts record School Board adopts taxes to counties in May funds collected in final levy in December 2021 and October 2021. calendar year 2021 as 2020. Counties remit these revenues in school fiscal funds to school districts. year 2022. 7
Willmar Public Schools Willmar Public Schools Certification Options • School boards have two options for certification to counties: • Maximum dollar amount • In this case, the county will pick up any late changes made by MDE after certification by the School Board. • Specific dollar amount • In this case, the levy is locked in to a specific dollar amount. • To pick up late changes, the School Board would need to recertify the preliminary levy before September 30. • There are currently no more meetings scheduled in September. 8
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Preliminary 2020 Payable 2021 Levy The preliminary levy for 2020 Payable 2021 decreased $4,693.06 or 0.06% compared to the current levy. Pay 2020 Pay 2021 Change Category (FY 21) (FY 22) $ % Referendum $112,119.14 $120,147.74 $8,028.60 7.16% 4,038,414.47 4,102,896.21 64,481.74 1.60% General 397,848.34 357,060.56 (40,787.78) -10.25% Community Education Debt Service 3,621,077.51 3,584,661.89 (36,415.62) -1.01% TOTAL $8,169,459.46 $8,164,766.40 ($4,693.06) -0.06% 9
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Preliminary 2020 Payable 2021 Levy 10
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Referendum Levy Pay 20 (FY 21) Pay 21 (FY 22) Change $ Change % Limitation Voter Approved Referendum $115,372.06 $117,676.39 $2,304.33 2.00% Components Tier Adjustment (3,252.92) 2,471.35 5,724.27 -175.97% Adjustments TOTAL $112,119.14 $120,147.74 $8,028.60 7.16% 11
General Fund Levies Willmar Public Schools Pay 20 (FY 21) Pay 21 (FY 22) Change $ Change % Limitation Achievement & Integration $304,029.74 $309,171.55 $5,141.81 1.69% Components Equity 463,793.19 473,564.19 9,771.00 2.11% Local Optional 1,700,353.11 1,734,314.31 33,961.20 2.00% Operating Capital 237,791.08 254,584.25 16,793.17 7.06% Safe Schools 169,084.08 165,751.20 (3,332.88) -1.97% Career & Technical 150,780.94 154,950.63 4,169.69 2.77% Building/Land Lease 10,671.99 11,544.96 872.97 8.18% Transition 91,720.56 93,552.50 1,831.94 2.00% Reemployment 18,470.62 35,000.00 16,529.38 89.49% Econ Dev. Abatement 77,634.20 62,133.16 (15,501.04) -19.97% Long-term Facilities 842,595.21 818,073.65 (24,521.56) -2.91% Adjustments Achievement & Integration 8,281.70 3,977.89 (4,303.81) -51.97% Equity (4,030.22) (3,652.84) 377.38 -9.36% Local Optional (10,638.04) (9,550.46) 1,087.58 -10.22% Board Approved Referendum (2,240.83) 0.00 2,240.83 -100.00% Operating Capital (15,442.48) (82.51) 15,359.97 -99.47% Safe Schools (473.76) 936.36 1,410.12 -297.64% Transition (809.14) (726.43) 82.71 -10.22% Reemployment (15,529.36) 15,020.49 30,549.85 -196.72% Econ Dev. Abatement (14,079.76) (31,928.00) (17,848.24) 126.77% Career & Technical 19,075.98 15,290.93 (3,785.05) -19.84% Abatement (1,306.41) 3,502.70 4,809.11 -368.12% Long-term Facilities 9,085.35 (2,384.89) (11,470.24) -126.25% Lease Pay 17 (215.83) 56.25 272.08 -126.06% Other (187.45) (203.68) (16.23) 8.66% 12 TOTAL $4,038,414.47 $4,102,896.21 $64,481.74 1.60%
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Community Education Levy Pay 20 (FY 21) Pay 21 (FY 22) Change $ Change % Limitation Basic Community Ed $194,067.30 $194,067.30 $0.00 0.00% Components ECFE 69,961.57 69,852.04 (109.53) -0.16% Home Visiting 1,855.67 1,999.95 144.28 7.78% School Age Care 112,776.76 102,163.42 (10,613.34) -9.41% Adjustments ECFE 522.83 (136.68) (659.51) -126.14% Home Visiting 5.28 (0.90) (6.18) -117.05% School Age Care 18,819.38 (11,249.90) (30,069.28) -159.78% Abatement (160.45) 365.33 525.78 -327.69% TOTAL $397,848.34 $357,060.56 -$40,787.78 -10.25% • School Age Care is estimated and adjusted based on budgeted and actual numbers 13
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Debt Service Levy Pay 20 (FY 21) Pay 21 (FY 22) Change $ Change % Limitation Bonds $3,794,270.00 $3,791,225.00 ($3,045.00) -0.08% Components Debt Excess (171,898.61) (210,804.55) (38,905.94) 22.63% Adjustments Abatement (1,293.88) 4,241.44 5,535.32 -427.81% Reduction for Debt Excess 0.00 0.00 0.00 -% GDS Other Net Offset 0.00 0.00 0.00 -% TOTAL $3,621,077.51 $3,584,661.89 ($36,415.62) -1.01% • The District is required to levy 105% of the scheduled debt service payments • Excess funds accumulate due to levying at 105%. The levy is reduced based on a calculation by MDE for excess funds. 14
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Preliminary 2020 Payable 2021 Levy Pay 2020 Pay 2021 Change Category (FY 21) (FY 22) $ % $112,119.14 $120,147.74 $8,028.60 7.16% Referendum 4,038,414.47 4,102,896.21 64,481.74 1.60% General Community Education 397,848.34 357,060.56 (40,787.78) -10.25% 3,621,077.51 3,584,661.89 (36,415.62) -1.01% Debt Service TOTAL $8,169,459.46 $8,164,766.40 ($4,693.06) -0.06% Recommendation : Certify the “maximum” so the levy can be updated for MDE changes prior to the final certification in December. 15
Still Needs to be Willmar Public Schools Willmar Public Schools Updated Next Steps • Truth in Taxation hearing: • Monday, December 14, 2020 at 6:00pm • Board Room at Willmar Education & Arts Center (WEAC) • Final Levy Certification by the School Board : • Monday, December 14, 2020, following the presentation of the Truth in Taxation information • Board Room at Willmar Education & Arts Center (WEAC) 16
Willmar Public Schools Willmar Public Schools Questions? Kathryn Haase, Director of Business & Finance haasek@willmar.k12.mn.us (320) 231-8511 17
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