Request for an Increase to the Fund 1, Incidental Fund Why the - PowerPoint PPT Presentation

Factual Information Concerning the Districts Request for an Increase to the Fund 1, Incidental Fund Why the Chillicothe R-II Board of Education is requesting this investment at this time Election Date: Tuesday, April 7, 2020

Ballot Language Which Will Appear on Ballot "Shall the Board of Education of Chillicothe R-II School District, Livingston County, Missouri be authorized (1) beginning in 2020, to increase the operating tax levy for school operating purposes by sixty-eight cents ($0.68) per one hundred dollars of assessed valuation, and (2) beginning in 2023, to increase the operating tax levy for school operating purposes by another twelve cents ($0.12) per one hundred dollars of assessed valuation, which will replace an operating tax levy in the same amount that will expire by its terms in 2023. If this question is approved, the adjusted operating levy of the District is estimated to be $4.43 per one hundred dollars of assessed valuation."

What revenue will be generated? • If approved, the district will generate approximately $935,000 in additional revenue. With current revenue collections of $22,238,217, an additional $935,000 would equate to a 4.2% increase in revenues for the Chillicothe R-II School District. • These additional funds will allow the district to recruit, and keep, the best instructional and support staff to serve the needs of our students.

Chillicothe R-II Levy • Currently, the total adjusted tax rate for the Chillicothe R-II School District is $4.710 per $100 assessed valuation. ($3.63 incidental, $.9660 debt service, and $.12 capital projects.) • With approval of the levy, the levy will increase to $5.396 per $100 assessed valuation ($4.43 incidental and $.9660 debt service.)

How does that compare? District Fund 1 Fund 3 Fund 4 Total Incidental Debt Capital Adjusted Service Project Tax Rate Chillicothe R-II $3.6300 $.9660 $.1200 $4.716 Carrollton R-VII $3.5744 $.0000 $1.3407 $4.9151 Maryville R-II $4.1558 $.7900 $.1199 $5.0657 Brookfield R-III $4.4432 $.66000 $.0000 $5.1032 Kearney R-I $4.0242 $1.1902 $.0000 $5.2144 ExcelsiorSprings 40 $4.1291 $1.1453 $.0000 $5.2744 Lathrop R-II $4.3353 $.9725 $.0000 $5.3078 Liberty 53 $4.5285 $1.5665 $.3600 $6.4550

Additional Comparison (Fund 1) District Fund 1: Operational Levy Chillicothe R-II $3.6300 Tina – Avalon R-II $3.7470 Hale R-I $4.0016 Southwest Livingston $4.4700 Tri-County R-VII $4.5482 Breckenridge R-I $4.6113 Livingston Co. (Chula) $5.0489 Grundy Co. R-V $5.9207 Laredo R-VII $5.9936

What will be the financial impact on families? Proposed Monthly Real Estate Assessment Assessed Annual Levy Ratio Value Levy Amount 0.68 Home Value $50,000.00 19.00% $9,500 $64.60 $5.38 $75,000.00 19.00% $14,250 $96.90 $8.08 $100,000.00 19.00% $19,000 $129.20 $10.77 $125,000.00 19.00% $23,750 $161.50 $13.46 $150,000.00 19.00% $28,500 $193.80 $16.15 $200,000.00 19.00% $38,000 $258.40 $21.53

What will be the financial impact on families? Assessment Assessed Annual Levy Farm Ratio Value Levy Amount 0.68 Farm Value $150,000.00 12.00% $18,000.00 $122.40 $10.20 $250,000.00 12.00% $30,000.00 $204.00 $17.00 $500,000.00 12.00% $60,000.00 $408.00 $34.00 $750,000.00 12.00% $90,000.00 $612.00 $51.00 $1,000,000.00 12.00% $120,000.00 $816.00 $68.00

Why is the district making the request at this time? • The district had $15,391,891 in Fund 1 and Fund 2 expenditures during the 2001-02 school year. In 2018-2019, the district had $20,359,217 in expenditures. This is a 32.27% increase in expenditures. • During the same time period, revenues increased from $15,427,578 to $19,774,970, which is a 28.18% increase in revenues. • The value of $15,391,891 of expenditures in 2001 is equal to $23,453,303 in 2019, which is $3,094,086 less than our current expenditures. • The district is requesting the levy increase to generate roughly $935,000 to close the gap.

Districts Recent Efforts • Transportation – Three fewer bus routes & aging bus fleet • For the first time, the district has requested State Adequacy Target Formula Funds for Pre-K students. • Replacement of old district office with new energy efficient facility. This facility will be built with an insurance payment, and local funds will not be used for the construction of the building. • Sale of Central and Garrison Schools • Building supplies budgets were cut by 10%, for the 2019-2020 budget, despite having an additional 30-40 students.

Salary Facts – 2018 DESE Report Card Teachers with Masters Average Teacher Degrees or Higher Salary Missouri: 58.4% Missouri: $49,302 Chillicothe: $46,841 Chillicothe: 66.5% Average Average Years of Administrator Salary Experience Missouri: $92,378 Missouri: 12.4 Years Chillicothe: $88,399 Chillicothe: 15. 2 Years

Levy History • 1992 – a $0.36 operating levy was passed for operational purposes. • 1998 – a $0.79 Proposition C Waiver was passed with funds to be used for a Lease Purchase agreement for the construction of a new high school. The Tax Rate Ceiling became $3.54 per $100 assessed valuation. When were Bond Issues (for construction purposes) approved by District Voters? • 2002 – conversion of 1998 Lease Purchase • 2016 – construction of new Elementary School and other school enhancements

Why do we need to close the gap? • Imagine the school district is your home. Currently the district is spending money out of its savings account, (district reserves), to pay for its operational costs. This works until the reserves are depleted. Then the only option is to cut expenditures, which means fewer teachers, larger class sizes, and reduction in student achievement.

Questions? Election Day – April 7