Dassel-Cokato Schools 2013 School Support Levy November 5, 2013

Our Current School Support Levy Will expire after the 2014 – 15 school year. Is $ / student Is used for a variety of expenses including: Reducing class size Updating technology so that our students are ready to compete in the 21st Century workplace. Providing technical college and college credit classes. Off-setting bus fuel and heating costs. Enhancing foreign language opportunities for high school students. More students will be able to enroll in Spanish in than in previous years.

Current Levy Uses Continued Expanding science and math opportunities for high school students. Updating Media Center book collections. Providing support to students who struggle academically so that they can reach their highest potential. Hiring additional coaches and advisors as needed based upon student numbers

Proposed School Support Levy Will replace the last year of our current levy and last for 10 years with a small inflationary increase each year based upon the Consumer Price Index Will increase our annual revenue by $450,000. Includes $438 / pupil of voter approved levy and $212 / pupil of location equity aid for a total of $650 / pupil. Will be used to continue the efforts that we have in place including those previously listed. Should allow us to remain financially stable into the foreseeable future.

What is the tax impact of the proposed levy? Taxable Market Value Annual Tax Impact Current Levy Annual Tax Impact Proposed Levy Difference Residential Homestead $50,000 $75,000 $100,000 $125,000 $150,000 $ 175,000 $200,000 $225,000 $250,000 $500,000 $750,000 $1,000,000 ($29.57) ($44.35) ($59.13) ($73.91) ($88.70) ($ ) ($118.26) ($133.05) ($147.83) ($295.66) ($443.49) ($591.32) $33.10 $49.65 $66.20 $82.76 $99.31 $ $ $ $ $ $ $ $3.53 $5.30 $7.07 $8.85 $10.61 $ $14.15 $15.91 $17.68 $35.36 $53.04 $70.73 Commercial/ Industrial $250,000 $500,000 $1,000,000 $5,000,000 ($147.83) ($295.66) ($591.32) ($2,956.59) $ $ $ $3, $17.68 $35.36 $70.73 $ Agricultural 80 Acres $ 624,000 Homestead * 160 Acres $1,104, Acres $2,064, Acres $3,984,000 ($88.70) $99.31 $10.61 Tax impact is based on a $438 / pupil voter approved levy and a $212 / pupil location equity aid levy.

Why is the tax impact so low? During the 2013 legislative session the legislature passed a bill that improved equalization for property poor districts such as Dassel-Cokato. Equalization on the current levy is about 41%. Equalization on the proposed levy will be about 58%. For every dollar raised through the levy 58 cents comes from the state tax base and 42 cents comes from the local tax base.

What is Location Equity Aid? During the 2013 legislative session the legislators created a category of funding called Location Equity Aid. Our district qualifies for $ / pupil of Location Equity Aid. Location Equity Aid is automatically levied on local taxpayers and equalized by the state just like a voter approved levy (58% state tax base and 42% local tax base). The total levy amount will equal $650/pupil ($ $212.00) but only $ needs to be approved through a vote

How does local school tax effort compare with surrounding communities?

How does our current school support levy compare to surrounding schools? State Average$ Hutchinson$ Delano$ Annandale$ Maple Lake$ Litchfield$ HLWW$ Dassel-Cokato$ Rockford$395.00

In Summary On November 5 voters will be asked whether or not they approve of a $438 / pupil school support levy. If approved the total school support levy will be $650 / pupil because we will be receiving $212 / pupil in equity aid. $438 + $212 = $650 Annual impact on a $175,000 house will be $12.38 and will bring in additional revenue of $450,000 / year.