Truth I n Taxation Public Meeting Time 6:00pm Date 12/5/2019 at - - PowerPoint PPT Presentation

2019 Payable 2020

Truth I n Taxation Public Meeting

Time 6:00pm Date 12/5/2019 at the Winona City Hall 207 Lafayette St # 3533 Winona, MN 55987

Minnesota’s Truth in Taxation Law requires that cities, counties and school districts follow certain steps before adopting a tax levy for the following year.

• The law requires a mailed notice to each property owner in the county, which describes the tax

levies proposed by the city, county and school district and what percent increase (decrease) such a levy would mean in dollars.

• School districts are required to hold a single meeting in which the public is allowed to speak and

the budget and levy is discussed. This meeting may be part of a regularly scheduled meeting but must occur after 6:00 P .M.

• The meeting date and location must be provided at the same time or prior to certifying the

proposed property tax levy. The meeting date must be between November 25 and December 27.

• You are here tonight as part of the school district’s public meeting process.

T r uth in T axation L aw

1.

Discuss proposed property tax levy for taxes payable 2020

2.

Provide and discuss information on the current budget (2019- 2020).

3.

Public must be given a reasonable amount of time to comment

• n the proposed property tax levy and budget and to ask

questions.

• Minnesota Statute 275.065

Re quir e me nts of the T r uth in T axation Public Me e ting

1.

Revenue formulas are set by the State Legislature except for voter approved referendums.

2.

Local Levy and State Aid mix are set by the State Legislature.

3.

An increase in local taxes does not necessarily mean an increase in revenues for the school district.

• Minnesota Statute 275.065

Points to Re me mbe r

Levy Cycles

School District Budget Current School Year 2019-2020

Winona Area School District

All school districts’ budgets are divided into separate funds, as required by law. For our District, there are 7 funds:

• 1. GENERAL FUND (Fund 01)
• Revenue is based on student enrollment
• The local referendum levy is part of the General Fund
• Provides for classroom instruction, instructional supplies and equipment, and other educational

activities

• Special Education, and State / Federal Mandated Programs
• Extra-curricular Activities
• Pupil Transportation
• Facilities Operation and Maintenance
• Capital Expenditures and Improvements
• Health and Safety Code Compliance

F und Ac c ounting Ove r vie w

• 2. FOOD SERVI CE (Fund 02)
• School Breakfast and Lunch Program
• 3. COMMUNI TY SERVI CE (Fund 04)
• Levy is based on adult population in the District
• Early childhood levy is based on the number of children under 5 years of age
• Provides for enrichment programs for any age level that are not part of the K-12 education program
• Early Childhood Family Education
• School Readiness
• Adult Basic Education
• 4. DEBT SERVI CE (Fund 07)
• Based on annual debt retirement schedules for the district’s outstanding bonded indebtedness. Annual

levy is for the payment of principal and interest on bonds as due. Current debt is a result of the voter approved Bond Issue for 2018.

F und Ac c ounting Ove r vie w

• 5. NON-OPERATI NG FUND (Fund 06)
• Record all operations of the district’s building construction program
• Funded by sale of bonds, capital loans, or major capital project costing $2,000,000 or more
• 6. FI DUCI ARY FUND (Fund 45)
• Irrevocable trust funds related to Post-Employment Benefits
• 7. PROPRI ETARY FUND (Fund 20)
• This fund is no longer used as of July 1, 2019
• Not a required fund

F und Ac c ounting Ove r vie w

18-19 Actual 19-20 Budget Percent Change General Fund 44,112,921 41,069,784

• 6.90%

Food Service 1,646,382 1,755,500 6.63% Community Service 2,014,725 2,018,796 0.20% Debt Service 1,949,523 2,957,996 51.73% Non-Operating 9,825,596 1,036,346

• 89.45%

Fiduciary 389,048 526,099 35.23% Proprietary 212,967

• 100.00%

Totals 60,151,160 $ 49,364,522 $

• 17.93%

2019-2020 BUDGET OVERVIEW REVENUES

Winona Ar e a Sc hool Distr ic t

General Fund Revenue Budget

Where Do Our School Revenues Come From?

Local Taxes 22.0% Other Local 3.3% State Aid 71.1% Federal Aid 3.6%

Winona Ar e a Sc hool Distr ic t

18-19 Actual 19-20 Budget Percent Change General Fund 42,302,043 40,707,297

• 3.77%

Food Service 1,750,336 1,787,334 2.11% Community Service 1,915,884 1,968,402 2.74% Debt Service 2,156,748 2,798,935 29.78% Non-Operating 1,239,038 4,597,661 271.07% Fiduciary 898,653 863,099

• 3.96%

Proprietary 204,262

• 100.00%

Totals 50,466,964 $ 52,722,729 $ 4.47% 2019-2020 BUDGET OVERVIEW EXPENDITURES

Winona Ar e a Sc hool Distr ic t

HOW ARE GENERAL FUND DOLLARS SPENT?

Expenses incurred in the operation of the district are paid from the General Fund. The following schedule relates how the dollars allocated to the General Fund are spent:

District & School Administration 3.6% District Support Services 3.1% Regular Instruction 34.6% Vocational Instruction 0.7% Special Education Instruction 27.0% Instructional Support Services 5.5% Pupil Support Services 13.3% Sites-Buildings, Equipment 12.1% Fiscal and Other 0.0% 100.0%

Winona Ar e a Sc hool Distr ic t

General Fund Expenditure Budget

What Do Our Expenditures Pay For?

Salary & Wages 55.4% Employee Benefits 19.5% Purchased Service 18.9% Supplies & Materials 3.9% Capital Expenditure 2.2% Other Expense 0.1%

Winona Ar e a Sc hool Distr ic t

School District Levy

• 2019 Payable 2020
• 2020-2021 School Year
• Fiscal Year 2021

Winona Ar e a Sc hool Distr ic t

Authority for School Levies

A School District Tax Levy must be either:

• Set by State Formula
• or-
• Voter Approved

Winona Ar e a Sc hool Distr ic t

Factors I mpacting Tax Change

I ssues Driven by Legislative Decisions:

• Change in sales ratio (impacting ANTC)
• Change in tax capacity rate structure
• Laws mandating code compliance (Health & Safety

and Buildings)

I ssues Determined by District Voters:

• Voter approved building bond issue
• Voter approved excess levy referendum

Winona Ar e a Sc hool Distr ic t

Factors I mpacting Tax Change ( cont .)

Local Factors:

• Inflationary pressure on real estate market
• Abatements
• Property improvements not previously taxed
• Change in individual assessed market value
• Possible change in property classification (e.g.

homestead to rental)

Winona Ar e a Sc hool Distr ic t

How will your 2020 school taxes be spent?

Percent General Fund Provides additional funding for district instructional programs by means of the approved excess referendum. Provides funds for operating capital expenses, building/land lease, and Health & Safety costs: 70.5% Community Education Fund Levy for Community Education Programs: 4.2% Debt Service Levy for repayment of principal and interest on district debt: 25.3% Total Levy Before Credits: 100.0%

Winona Ar e a Sc hool Distr ic t

GROSS LEVIES ACTUAL PROPOSED DOLLAR PERCENT BY FUND 18 PAY 19 19 PAY 20 DIFFERENCE DIFFERENCE General Fund 8,953,406.91 9,159,979.81 206,572.90 2.31%

Community Services 559,976.36 541,843.98 (18,132.38)

• 3.24%

Debt Redemption 3,865,542.57 3,299,709.84 (565,832.73)

• 14.64%

Total 13,378,925.84 13,001,533.63 (377,392.21)

• 2.82%

Comparison of Certified Payable 2019 Levy with Proposed Payable 2020 Levy

LEVY LIMITATION AND CERTIFICATION 2019 Payable 2020

Winona Ar e a Sc hool Distr ic t

Category Pay 2019 Pay 2020 Change General Fund Operating Capital 365,361.00 323,477.00 (41,883.00) Leases 368,302.00 538,026.00 169,724.00 Long Term Facilities 1,215,677.00 1,538,416.00 322,739.00 Local Optional 1,248,426.00 1,984,212.00 735,786.00 Referendum Voter App 4,371,691.00 3,522,705.00 (848,986.00) Equity and Transition 359,734.00 336,107.00 (23,627.00) Other General Fund 1,024,215.91 917,035.81 (107,180.10) Sub-Total 8,953,406.91 9,159,978.81 206,572.90 Community Service 559,976.36 541,843.98 (18,132.38) Debt Service 3,865,542.57 3,299,709.84 (565,832.73) Total Change (377,392.21) Major Changes to Levy Categories

Winona Ar e a Sc hool Distr ic t

What are the main variables that cause property tax increases and decreases?

• Changes in market values, classification or class

rates

• Change in property tax credits (e.g. change in

Homestead Benefit from a credit to an exclusion)

• Voter approved referendums
• Increases or decreases in levy amounts caused by

changes in state funding formulas

Winona Ar e a Sc hool Distr ic t

What are the main variables that cause property tax increases and decreases?

( c ( con

• nt .)
• The value of your property may increase or

decrease

• The value of other properties may increase or

decrease and change the share that your property is of the total tax base, whether your property’s value changed or not.

• School Board Actions.

Winona Ar e a Sc hool Distr ic t

Whereas, Pursuant to Minnesota Statutes the School Board of

Winona Area School District, Winona, Minnesota, is authorized to make the following proposed tax levies for general purposes: Maintenance (General Fund) $ 9,159,979.81



Includes Referendum

Community Service 541,843.98 Debt Service 3,299,709.84

Total Proposed School Tax Levy $13,001,533.63

Approval of the $13,001,533.63 levy will take place at the December 19, 2019 School Board Meeting at 6:00pm.

Winona Ar e a Sc hool Distr ic t

Questions?

Winona Ar e a Sc hool Distr ic t

Public Comment

Winona Ar e a Sc hool Distr ic t