Foley Public Schools

Truth in Taxation Timeline 2015 Pay 2016 Levy for School Year or FY2017

When are my property taxes due? Most property taxes are due on May 15 and October 15 (paid in equal installments). If your total property tax is $250 or less, the full amount is due on May 15. If your property is classified as agricultural, the second payment is not due until November 15.

Truth in Taxation Law Began in 1988 Two steps for counties, cities and schools - Mail notice to each property owner with percentage increase/decrease in dollars - Truth in Taxation public hearing is required

Agenda School District Fund Information Presented Current Year Adopted Budget Presented Proposed Property Tax Levy Presented Percentage Increase/Decrease of Levy Discussed Opportunity for Public Inquiry Given

School District Funds General Fund Food Service Fund Community Education Fund Building Fund Debt Service Fund

Budget Fund Description Projected Revenue Projected ExpendituresDifference 6/30/15 Fund Balance General $16,975,465$16,973,0122,453$6,688,506 Food Service $1,035,697$1,030,123$5,574$286,933 Community Service $567,922 $0 $90,230 Building Fund $100,000$187,780($87,780)$1,158,759 Debt$3,706,940$3,444,680$262,260$104,423

General Fund Based on student enrollment Local operating levies Transportation Special Education Capital Health & Safety Federal Grants

Adjusted ADM’s

General Fund Departmental Expenses

General Fund Expenses by Category

Food Service Fund Based on: Federal Grant of free/reduced lunch Student participation

Community Education Fund Based on the adult population in the District Early Childhood is based on the number of children under 5 years of age. Participation Fees

Building and Debt Service Funds Building Fund Debt Service Fund Based on Maximum Effort Capital Loan through 2019 Pay the District’s Bond Payments $ 187,780 Spent on two International Busses

School District Levy 2015 Payable School Year, i.e., FY17

2015 Payable 2016 Levy

Levy by Fund

Voter Approved vs. Other Levies

Total Levy Increase $4,155 or.094%

How do we minimize the impact on the local taxpayer while adequately funding our education programs? Is there a way to not ask for taxpayer help now, but build taxpayer trust so the support is there when needed?

Causes of Property Tax +/- Changes in market values. Changes in class rates/history. Changes in state formula. Voter approved referendums.

What causes property taxes to vary by type of property? Some properties are eligible for “exclusions”. The primary cause of variation in property tax burdens is Minnesota’s classified property tax system. In a classified system, each class of property is assigned one or more class rates. The property’s taxable market value is multiplied by the class rate(s) to determine the property’s tax base, technically called its net tax capacity. The state general tax and school district operating referendum levies apply to some types of property but not to others. All voter-approved levies, except school district levies for bonded debt, are levied on Referendum Market Value. School district levies for bonded debt are levied on the net tax capacity of all types of property.)

Exclusions and credits Homestead market value exclusion - $30,000 Disabled Veterans - $300,000 Agricultural market value credit

2015 Payable 2016 Levy Referendum Market Value$427,292 Net Tax Capacity $4,014,293

Safe Schools money can be used for the following purposes: (1) to pay for the costs incurred for the salaries, benefits and transportation of peace officers and sheriffs for liaison in services in the district’s schools; (2) to pay for the costs for a drug abuse prevention program as defined in section Subdivision 3, paragraph (e) in the elementary schools; (3) to pay for the costs for a gang resistance education training curriculum in the district’s schools; (4) to pay for the costs of security in the district’s schools and on school property; (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken by the school district; (6) to pay costs for licensed school counselors, licensed school nurses, licensed social workers, licensed school psychologists, and licensed alcohol and chemical dependency counselors to help provide early responses to problems; (7) to pay for facility security enhancements including laminated glass, public announcement systems, emergency communications devices, and equipment and facility modifications related to violence prevention and facility security; (8) to pay for costs associated with improving the school climate; or (9) to pay costs for colocating and collaborating with mental health professionals who are not district employees or contractors.

Options: 1.Approve the Maximum as laid out earlier in the presentation -.094% increase 2.Reduce the Safe Schools levy by $4, – 0% increase - Selected

4. Ability to increase Local Optional Revenue by increase dollars per student claimed up to 424., Things to think about: 1.Voter approval for more authority for One Day Bonds to retain ability to issue the bonds in 2016, 2017 and Taxpayers will enjoy a massive decrease in their tax burden after Cushioned by projected increase in Long Term Facilities Maintenance Revenue

In January budget revision: In addition to a revision of the regular General Fund revenues and expenses, we will reveal a FY16-18 short term plan as well as a long-term view for our facilities, including: Deferred Maintenance Operating Capital Long-term facilities maintenance program revenues Building Construction Fund Food Service Fund Balance “Assigned” Fund Balance for future needs

1.Could Zero out Safe Schools in September, 2016, e.g. a)Reduce the Safe Schools levy by $72,576 to $0 b)increase the dollars per students claimed for Local Optional Revenue LOR) from 124 to 142 (an increase of 18) c)Result: i.an increased levy for LOR of $34, ii.increased State Aid for LOR of $38, iii.a total levy of $4,403,268 iv.a reduction of taxes levied of $ or a reduction of.77% v.No reduction in total revenues received by the district.

Questions Opportunity for public inquiry.