St. Francis Public School Proposed Levy Payable 2018

AGENDA Background on School Funding, Property Tax Levies and Budgets Information on District’s Budget Proposed Pay 2018 Levy Public Questions and Comments

State Historical Information Minnesota Statute 275.065 began in 1988 Mailed notice to each property owner Levy amount and impact Public meeting Present current budget and proposed levy Opportunity for community comment Notification of Truth and Taxation Meeting Certification of Levy in December following meeting

LEVY CERTIFICATION PROCESS July/August - Submission to Department of Education September – Preliminary Levy Certification County mailed proposed tax statements Truth in taxation hearing December - Final levy certification by School Board

The Levy Cycle PAY Certified FY 2019 December 2017 2017 2018 B Budget 2018-2019 2017 2018 Property owners pay taxes in May 2018 & October 2018 based on the levy certified in December 2017 Reconciliation entries are required since tax receipts fall into 2 different fiscal year and must be FY19 District Board adopts final levy in December 2017-Levy process starts in July 2017 (summer levy)

LEVY CYCLE

Average Daily Membership

Average Daily Membership

16-17 Revised Budget Revenues General Fund

16-17 Revised Expense General Fund by Object Series $$51,643,544

17-18 Adopted General Fund

17-18 Adopted General Fund Revenues

17-18 Adopted General Fund Budget by Object Series

17-18 Adopted Budget

HISTORICAL LEVY LIMITATION Pay 2013 Certified Amount = $10,814,467.69 Pay 2014 Certified Amount = $11,102,576.44 Pay 2015 Certified Amount = $10,984,900.26 Pay 2016 Certified Amount = $11,324,137.90 Pay 2017 Certified Amount = $11,740,129.20 Pay 2018 Proposed Amount = $ 8,304,210.89

HISTORICAL LEVY LIMITATION

State Funding Authorization State sets formulas which determine revenue; most revenue is based on specified amounts per pupil. State sets tax policy for local schools. State sets maximum authorized property tax levy. State authorizes school board to submit referendums for operating and capital needs to voters for approval.

Community Service Fund Debt Service Fund OPEB Debt Service Fund LEVY FUND TYPES General Fund Community Service Fund Debt Service Fund OPEB Debt Service Fund

GENERAL FUND LEVY Safe Schools Career and Tech Alternative Teacher Compensation Capital Health and Safety Building/Land Lease LTFM Long Term Facilities Maintenance Reemployment

General Fund Proposed Levy

COMMMUNITY SERVICE LEVY Community Service Early Childhood Education Home Visits School Age Care

Community Service Proposed Levy

DEBT SERVICE FUNDS Alternative Facilities Debt 2010 B Bond Series 2014A Bond Series General Obligation Refunding Debt 2015A G.O. Bond Series Facilities Maintenance 2016A Maintenance Bond OPEB Debt-Final Payment Issued

Debt Service Fund Levy

Pay 2018 Proposed Levy by Fund

TRUTH AND TAXATION CATEGORIES

2017 PAY 2018 TNT CATEGORY

Variables Impacting Property Tax Changes in market values Changes in class rates/history State adjustments, enrollment changes Voter approved referendums

Market Value

General Education Formula Since 2003, the state General Education Revenue formula has not kept pace with inflation. For FY 2016 and FY 2017, Legislature approved an increase of 2% per year $117 per pupil unit in FY 2016 An additional $119 for FY 2017 Per-pupil allowance for Fiscal Year 2017 would need to increase by another $626 (10.3%) to have kept pace with inflation

General Education Formula

Funding Options Other funding sources (e.g., special education, capital funds) also have not kept pace with inflation Primary options for districts to bridge the funding gap are to cut budgets or increase referendum revenue; most districts have done both

2017 Payable 2018 Levy Review General Fund $5,759,668.12 Community Services $ 378,839.77 Debt Service $2,165,703.00 Total Proposed Tax Levy $8,304,210.89 Request to certify the maximum, which allows flexibility until the final levy is approved in December.

Next Steps School Board will accept public comment and questions on proposed levy. Truth in Taxation Meeting scheduled for December 11, 2017 at 7:00 pm. School Board will Authorize Final Levy Certification December 11, 2017.