REVENUE OVERVIEW TAX LEVY CALCULATIONS OTHER BUDGET CONSIDERATIONS - PowerPoint PPT Presentation

REVENUE OVERVIEW TAX LEVY CALCULATIONS OTHER BUDGET CONSIDERATIONS

REVENUE SOURCES STATE AID HISTORY

Other Revenue Fund Balance 1.8% State Aid 2.3% 25.6% Tax Levy 70.2%

New Paltz CSD State Aid History 2008-09 to 2019-20 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0

New Paltz CSD State Aid Trend 2012 - 2020 Proposed 14.00% 13.16% 12.00% 10.00% 8.00% 6.91% 6.27% 6.00% 4.40% 4.00% 2.00% 1.93% 0.56% 0.00% -0.78% -2.00% -1.97% -2.05% -4.00% 2020 2012 2013 2014 2015 2016 2017 2018 2019 Proposed Aid Inc -1.97% 1.93% 6.91% -0.78% 13.16% 0.56% 6.27% -2.05% 4.40%

TAX LEVY HISTORY FACTORS IMPACTING TAX LEVY MAXIMUM ALLOWABLE LEVY IMPACT OF REDUCING TAX LEVY

New Paltz CSD Tax Levy Trend 2012 - 2020 Maximum 5.00% 4.43% 4.43% 4.38% 4.50% 4.24% 3.98% 4.00% 3.50% 2.84% 3.00% 2.36% 2.34% 2.50% 2.00% 1.50% 1.22% 1.00% 0.50% 0.00% 2020 2012 2013 2014 2015 2016 2017 2018 2019 Proposed Tax Inc 4.43% 4.43% 2.36% 4.24% 1.22% 2.34% 4.38% 3.98% 2.84%

Tax Cap Calculation: 5 Key Factors Current Year Tax Levy CPI (Consumer Price Tax Base Growth Factor Index) – Inflation Rate (NYS Tax & Finance) Capital & Retirement PILOT Payments Exclusions (Payments in Lieu of Taxes)

Tax Levy Limit: Maximum Allowable Levy Prior Year Tax Levy $44,565,000 x Tax Base Growth Factor 1.0056 + Payments In Lieu of Taxes Receivable in 2019-20 $442,495 - Taxes Levied For Exemptions in 2019-20 $3,629,301 = Adjusted Prior Year Tax Levy $41,627,758 X This is the ONLY Allowable Levy Growth Factor (Lesser of 2% or CPI) 1.0181 place where 2% - could be a factor in Payments In Lieu of Taxes Receivable in 2020-21 the calculation $450,000 + Available Carryover (If Any) This is the level that 0 the tax levy would = have to be reduced “TAX LEVY LIMIT” $41,931,220 to in order to qualify + for Carryover for the Coming School Year Exemptions $3,901,150 2021-22 Budget = “MAXIMUM ALLOWABLE TAX LEVY” $45,832,370 2.84%

2021-22 Tax Levy: 2020-21 Maximum Allowable Levy Assumes All Other Factors Are Unchanged Prior Year Tax Levy $45,563,242 x Tax Base Growth Factor 1.0056 + Payments In Lieu of Taxes Receivable in 2020-21 $450,000 - Taxes Levied For Exemptions in 2020-21 $3,901,150 = Adjusted Prior Year Tax Levy $42,367,246 X Allowable Levy Growth Factor (Lesser of 2% or CPI) 1.0181 - Payments In Lieu of Taxes Receivable in 2021-22 $450,000 + Available Carryover (If Any) 0 = “TAX LEVY LIMIT” $42,684,093 + Coming School Year Exemptions $3,901,150 = “MAXIMUM ALLOWABLE TAX LEVY” $46,585,243 2.24%

2021-22 Tax Levy: 2% Increase for 2020-21 Assumes All Other Factors Are Unchanged 2% Increase = Prior Year Tax Levy $45,456,300 $376,000 budget x reduction Tax Base Growth Factor 1.0056 + Payments In Lieu of Taxes Receivable in 2020-21 $450,000 - Taxes Levied For Exemptions in 2020-21 $3,901,150 = Adjusted Prior Year Tax Levy $42,259,705 X Allowable Levy Growth Factor (Lesser of 2% or CPI) 1.0181 NOTE: The percentage - increase is the same. Payments In Lieu of Taxes Receivable in 2021-22 $450,000 + However, it is Available Carryover (If Any) $385,000 LESS 0 = revenue than starting “TAX LEVY LIMIT” with the maximum $42,574,606 allowable levy for + 2020-21. Coming School Year Exemptions $3,901,150 = “MAXIMUM ALLOWABLE TAX LEVY” $46,475,756 2.24%

Other Budget Considerations Actions taken this year affect future budgets 1. Reductions in state aid are likely in 2020-21 AND 2021-22 • New York State has a revenue deficit before the COVID-19 pandemic 2. Larger increases in health insurance are likely due to COVID-19 3. Larger increases in ERS and TRS are likely due to stock market losses 4. The maximum allowable levy will most likely be lower next year.  Inflation is likely to be less than 2% next year  The tax base growth factor may also be lower next year 5. This year’s tax levy is the starting point for next year’s tax levy