Sugar-Salem School District #322 September 2016

Feb 2017 – Interest Payment $11,150 Sept 2017 – Principal Payment $1,115,000 Feb 2018 – Interest Payment $11,150 Total Repayments: $1,137,300 If we receive 100% of our taxes this year we will not have to levy for any of this in the school year – this will reduce the levy rate to our patrons significantly.

District Budget Market Value of District =Levy Rate $ 1,385,752 $264,491,416 = $ 1,158,888 $264,491,416 = With Emergency Levy No Emergency Levy

1.Superintendent & business manager create the budget together. 2.School Board – Reviews Budget 3.Budget Hearing is held in June Patrons are Welcome to Attend 4.Business Manager Certifies the Budget Amount to the County in August – this is the final amount

The County Assessor sets the property values at fair market value each year. Each property is inspected in person every 5 years. Contact your county assessor if you have questions or would like to appeal their decision.

YearLevy Rate Tax Year Levy Rate

1 st half of taxes = December 20 th 2 nd half of taxes = June 20 th The School District receives this money in January and July

1.Fremont Teton Jefferson Madison Sugar-Salem Ririe

Currently, home owners in the state of Idaho can get an exemption of up to ½ the value of 1 acre of land and the market value of their primary residence, with an upper limit of $94,745 in Exemption for $50,000 Home/Land = $25,000 Exemption for $100,000 Home/Land = $50,000 Exemption for $200,000 Home/Land = $94,745 Exemption amount is calculated each year

1.Circuit Breaker Tax reduction for qualified individuals 2.Tax deferral for qualified individuals These are primarily for low income and elderly individuals

There are tax exemptions for “personal property” used in a business if the value of these items is under $3,000.

If a farmer successfully qualifies their land as “agricultural land” then the assessment on this land is between $25/acre and $700/acre. Their tax bill is determined by the assessed value, not the market value. The State determines these rates each year and they vary according to how the land is used.

Bond – up to 5% of full market value ($264,491,416 x.05 = $13,224,570) Plant Facility Levy – less than.4% taxable market value 1 st year (capped by ballot) ($199,285,677 x.004 = $797,142) Supplemental Levy – No limit Based on 12/31/15 Market Value

1.Acquire, purchase or improve a school site 2.Build a schoolhouse or other building 3.Demolish or remove a school building 4.Add to, remodel or repair any existing building 5.Furnish and equip any building – lighting, heating, ventilation and sanitation facilities and appliances necessary to maintain and operate the buildings of the district 6.Purchase school buses 7.Acquire, develop or renovate school facilities to establish, create and develop renewable energy systems

Same as a bond with the following additions: 1.Lease and lease purchases for any of the areas approved in bond uses 2.Repay loans from commercial lending institutions to pay for the construction of school plant facilities

For all lawful expenses of maintaining and operating the schools within the district

1.Bonds – unlimited 2.Plant Facility Levy – 1 at a time 3.Supplemental Levy – 1 at a time

1.Bond – 2/3 Majority 2.Plant Facility Levy a. 55% if less than.2% market value b. 60% if.2%-.3% market value c. 2/3 if.3% -.4% market value 3. Supplemental Levy – Simple Majority If a bond does not pass you must wait a minimum of 6 months before you can vote on another bond.

1.Receive the money up front 2.State of Idaho Bond Levy Equalization Payment pays at least *10% of the interest cost over the life of the bond to qualifying districts 3.District can have multiple bonds *Complex formula changes this amount every year (It is $278,885 or about 24% of debt repayments in FY17)

1. The district is in debt 2. Issuance costs were $55,000 (lawyer, banker, misc. fees) 3. Interest Costs of $175, Continuing Disclosure Cost ($2,500/year per bond) 5. Material Event Disclosure Cost ( $500 per event) 6.Longer legal process 7.Restrictions on uses of money

1.No interest payment 2.The district is not in debt 3.No issuance or continuing costs 4.Shorter and simpler legal process 5.Supplemental levies give more freedom for uses of the money

1.Collection of money is slower 2.No State Equalization Money 3.Restricted uses of plant facility levy 4.May not collect 100% of money* 5.Can only have 1 of each type at a time *Our collection rate has ranged between % since 2007

For March 14 th Election: 1.Board Approval – By January 4 th 2.Certify Wording before January 17 th 3.Election – March 14 th For May 16 th Election: 1.Board Approval – By March 1 st 2.Certify Wording before March 24 th 3.Election – May 16 th

March, May or August Election: January of 2018 November Election: January of 2019

115 Districts in Idaho 94 Districts have Supplemental Levies 53 Districts have Plant Facility Levies 74 Districts have Bonds 67 Districts have a bond and a levy 10 Districts have multiple bonds As of 12/31/15