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

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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

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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%

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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

3 815 134 3 997 479 4 8%

Community Service Fund

3,815,134 3,997,479 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 18th in spending for regular instruction – Ranks 31st in spending for district administration – Ranks 39th in spending for school administration – Ranks 35th in spending for operations and maintenance

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How does District 834 Compare?

• Total Operating Expenditures per Average

D il M b hi (ADM) Daily Membership (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

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Key Steps in Determining School District Property Taxes

There are seven key steps in the process to d t i Di t i t t t determine District property taxes:

(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)

R id ti l H t d – Residential Homestead

• 1% up to $500,000 value
• 1.25% over $500,000 value

– Apartment rates

• Regular and Small City

1.25%

• Low‐income

0.75%

C i l I d i l P bli U ili – Commercial – Industrial – Public Utility

• Up to $150,000

1.5% Local

• Over $150,000

2.0% Local

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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

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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.)

l $ d f bl

• Total $29,539,502.30 or ‐7.1% decrease from Payable

2012

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Local Levy Trends

Millions

District 834 - Total Local Levy

27 28 29 30 31 32 26 2009 2010 2011 2012 2013 Tax Year

Levy as Percent of Total Budget

50.0%

District 834 - Levy as Percent of Total Budget

26.1% 26.7% 28.5% 25.4% 28.7% 30.0% 40.0% 20.0% 2008-09 2009-10 2010-11 2011-12 2012-13 Fiscal year

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The Homestead Credit Shift

• The 2011 legislature repealed the Homestead

M k t V l C dit Market Value Credit

• In its place, the Legislature implemented a

Homestead Market Value Exclusion

The Homestead Credit Shift

• New Law ‐ homestead market value exclusion

R d th l l ti f “t it ” id ti l – Reduces the calculation of “tax capacity” on residential 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 h l d h l b ( ) f – The exclusion reduces the total tax base (tax capacity) for the political subdivision and therefore affects tax rates and the taxes of all properties

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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 332,000 316,500

• 4.67%

Stillwater Township 332,000 316,500 4.67% West Lakeland 361,600 335,900

• 7.11%

Afton 334,700 330,800

• 1.17%

Bayport 162,500 141,900

• 12.68%

Hugo 191,900 180,400

• 5.99%

Lake Elmo 316,700 314,400

• 0.73%

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 247 400 222 200 10 19% Woodbury 247,400 222,200

• 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

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Education Property Tax Calculation

• Education tax = tax capacity + referendum –

credit

– $659+ $498 = $1157

Summary of Residential School Property Taxes – District 834

Taxes Payable Taxes Payable Payable 2012 Payable 2013 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% $ $ $ $ $ Market Value Change Other examples are on page 16 of Truth in Taxation packet $300,000 $285,000

• 5.00%

$1,199 $1,098

• $101
• 8.4%

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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

599 999 1,199 1,998 549 916 1,098 1,830

500 1,000 1,500 2,000

Property Tax Payable

3 013 2013 2 012 2012

500 142,500 237,500 285,000 475,000

2013 201 20 2012 201 20

(150,000 - 2012) (250,000 - 2012) (300,000 - 2012) (500,000 - 2012) Market Value

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District 834 – Net Tax Capacity Trend

Millions

District 834 - Net Tax Capacity

78 80 82 84 86 88 90 92 94 74 76 78 2007 2008 2009 2010 2011 Tax Year

District 834 – Market Value Trend

Billions

District 834 - Referendum Market Value

7 7 7 8 8 8 8 8 7 7 7 2007 2008 2009 2010 2011 Tax Year

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District 834 – Tax Capacity Rate Trend

District 834 - Property Tax Capacity Rate

17.714% 19.734% 20.300% 22.333% 21.968% 36.548% Tax Rate 0.000% 2009 2010 2011 2012 2013 Tax Year

District 834 – Market Value Rate Trend

District 834 - Referendum Market Value Rate

0.12623% 0.12034% 0.15894% 0.17626% 0.16578% 0 10000% 0.20000% 0.30000% 0.40000% 0.50000% 0.60000% Tax Rate 0.00000% 0.10000% 2009 2010 2011 2012 2013 Tax Year

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Washington County School District Comparisons

Comparison of Washington County School Districts Payable 2013 Referendum Tax Rate

0.05000% 0.10000% 0.15000% 0.20000% 0.25000% 0.30000% 0.35000% *For referenced districts, referendum tax rates do not reflect changes from the outcome of the November elections 0.00000% Hastings White Bear Lake

• So. Wash.

Co Mahtomedi Forest Lake No. St. Paul Stillwater Chisago Lakes

Washington County School District Comparisons

Comparison of Washington County School Districts Payable 2013 Tax Capacity Rate

5.000% 10.000% 15.000% 20.000% 25.000% 30.000% 35.000% 40.000% 45.000% 0.000%

• So. Wash. Co Mahtomedi
• No. St. Paul

White Bear Lake Chisago Lakes Hastings Forest Lake Stillwater

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Property Tax Refunds

• Regular Refunds

– Household income up to $100,780 – Refund up to $2,460 – Form M1‐PR

Property Tax Refunds

• Special Refund

– No income limitations – No income limitations – Net property tax must increase more than 12% from 2012 to 2013 and increase must be at least $100 and not attributable to new improvements – Refund is 60% of increase over 12% to a maximum

• f $1,000

Form M1 PR Schedule 1 – Form M1‐PR Schedule 1

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Final Levy Certification

• Board of Education will certify a final levy

f ll i bli t thi i following public comment this evening

Key Messages

• District 834 is relatively a low spending district

compared to other metro districts, targeting resources to the classroom

• Tax capacity and market value continues to

decline

• Pay 2013 Levy decreased $2.2 million or 7.1%

due

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Key Messages

• Tax rates decreased 1.6% for tax capacity tax

t d 5% f f d t t rate and 5% for referendum tax rate

• Compared to other Washington County school

districts, District 834 is second from lowest for referendum tax rate and the lowest for tax capacity tax rate p y

References / Resources

Minnesota Department of Education http://education.state.mn.us Minnesota Department of Revenue (651) 296-3781 www.taxes.state.mn.us Washington County http://www.co.washington.mn.us Stillwater Area Public Schools Stillwater Area Public Schools http://www.stillwaterschools.org

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For More Information

• Visit www.stillwater.k12.mn.us and click on

Fi Finance

• Or contact the Finance Department

– 651‐351‐8321 – queenerr@stillwater.k12.mn.us