ISD 911 – Cambridge-Isanti School District Presented By: Robyn Vosberg-Torgerson Director of Finance and Operations

ISD 911 – Cambridge-Isanti School District Truth in Taxation Law Minnesota’s Truth in Taxation Law began back in Requires cities, counties and school districts to follow two important steps before adopting a tax levy for the following year. Mailed Notice to each property owner in the county including: Tax levies proposed by city, county, and school district What percent increase/(decrease) such a levy would mean in dollars Pertains to a Truth in Taxation public hearing for each taxing jurisdiction, including a specific public notice. You are here tonight as part of the school district’s public hearing process.

ISD 911 – Cambridge-Isanti School District Requirements of the Truth in Taxation Hearing Current budget must be discussed. Discussion of taxes payable for the next year (2015). Provide and discuss information on the sources of revenue, and the distribution of the revenue and expenditures. The proposed percent increase (decrease) and the reasons for the change. Public must be given time to comment and ask questions. - Minnesota Statute

ISD 911 – Cambridge-Isanti School District Current School Year

ISD 911 – Cambridge-Isanti School District

How Does Our District Compare? Total Property Tax Revenue per Average Daily Membership (ADM) District 911$ 379 per ADM Metro Average$ 2,101 per ADM State Wide$ 1,608 per ADM ( Data)

ISD 911 – Cambridge-Isanti School District How Does Our District Compare? Total Operating Expenditures per Average Daily Membership (ADM) District 911$ 8,263 per ADM Metro Average$10,650 per ADM State Wide$10,124 per ADM ( Data)

ISD 911 – Cambridge-Isanti School District

School District Levy 2014 Payable School Year Fiscal Year 2016

ISD 911 – Cambridge-Isanti School District Contrast of City/Township/County Levy Cycle to School District Levy Cycle

ISD 911 – Cambridge-Isanti School District Key Steps in Determining School District Property Taxes  County Assessor determines the market value for each piece of property in the county.  The legislature establishes formulas to determine how much of the taxes should be paid by each type of property

ISD 911 – Cambridge-Isanti School District Key Steps in Determining School District Property Taxes  County Auditor calculates tax capacity for each parcel of property and the total tax capacity for each school district.  The legislature sets formulas that determine school district levy limits or the maximum amounts of taxes that districts can levy in each category.

ISD 911 – Cambridge-Isanti School District Key Steps in Determining School District Property Taxes  Minnesota Department of Education (MDE) calculates detailed levy limits for each school district based on formulas approved by the Legislature.  The School Board adopts a proposed levy in September, based on the limits set.  After a public hearing, the Board adopts the final levy in December.

ISD 911 – Cambridge-Isanti School District Key Steps in Determining School District Property Taxes  The County Auditor divides the final levy by the district’s total tax capacity to determine the tax rate needed to raise the proper levy amount. The Auditor multiplies this tax rate times each property’s tax capacity to determine the school tax for that property.

ISD 911 – Cambridge-Isanti School District Legislation breaks property into numerous categories Residential Homestead Non Homestead Apartments Commercial/Industrial Seasonal Recreational Agricultural Homestead Non Homestead Other

ISD 911 – Cambridge-Isanti School District School District Funds The school district has three different funds that include tax levy as a source of revenue. General Fund Community Service Fund Debt Service Fund

ISD 911 – Cambridge-Isanti School District General Fund Levy Career and Tech Safe Schools Operating Capital Deferred Maintenance Building Lease Health and safety Equity Transition Location Equity/Local Optional Revenue Board Approved Referendum

ISD 911 – Cambridge-Isanti School District Community Service Fund Levy Accounts for the lifelong learning programs in the District Levy are based on: a)Adult population of the District b)Early childhood levy is based on the number of children under 5 years of age

ISD 911 – Cambridge-Isanti School District Debt Service Fund Levy Levy to pay off principal and interest payments for building projects approved by the voters and alternative facility bonds which relate to health and safety projects Based on the annual debt retirement schedules

ISD 911 – Cambridge-Isanti School District School District Funds The School District has three other funds that do not include tax levy as a source of revenue and we are the fiscal host or contract for three cooperatives. Food Service Fund Building Construction Fund Internal Service Fund Cooperatives: Oak Land Vocational Cooperative ECMECC Rum River Special Education Cooperative

ISD 911 – Cambridge-Isanti School District How are your School Property Taxes Spent? General Fund43.68% Community Service Fund 2.54% Debt Service Fund53.78% Total Levy Before Credits100.00%

ISD 911 – Cambridge-Isanti School District The School District Levy is increasing by : $2,343, Or24.87%

ISD 911 – Cambridge-Isanti School District The School District Levy is Increasing in the General Fund by: $2,064, Decreasing in the Community Service Fund by: ($18,122.31) Increasing in the Debt Service Fund by: $296,491.09

ISD 911 – Cambridge-Isanti School District School District Levy Why did the dollar levy increase/(decrease) the amount that it did? Legislation Levy Ratio Health and Safety Change in Population Change in Building age Debt Service Payment Schedule

ISD 911 – Cambridge-Isanti School District What are the main variables that caused our property tax increases and decreases?

ISD 911 – Cambridge-Isanti School District History Present 2013 Legislature $300 $212 Bond Referendum Alternative Facility Bond 2014 Legislature Additional $212 Health & Safety Lease Levy

ISD 911 – Cambridge-Isanti School District General FundFY 2015FY 2016Change Category Prior Year Levy (Payable 2014) Total Proposed Levy (Payable 2015) FY 2016 over FY 2015 Equity442, , , Location Equity714, ,383, , Transition26, ,642.20(830.09) 1st Tier Board Approved Referendum 585, ,206.84(18,564.54) Equity & Transition Adjustments(159.85)44, , Total RMV Levies1,768, ,490, ,977.22

ISD 911 – Cambridge-Isanti School District General Fund FY 2015FY 2016Change Category Prior Year Levy (Payable 2014) Total Proposed Levy (Payable 2015) FY 2016 over FY 2015 Student Achievement64, ,723.11(3,461.55) Operating Capital280, , , Reemployment75, ,000.00(15,000.00) Safe Schools203, ,440.00(3,717.00) Career Technical62, ,318.05(17,071.12) OPEB Levy65, , , Health & Safety240, ,327, ,087, Deferred Maintenance194, , , Building Lease286, , , Adjustments(167,035.94)(121,514.07)45, Total Gen Fund NTC Levies1,304, ,647, ,342, TOTAL GENERAL FUND3,073, ,138, ,064,714.80

ISD 911 – Cambridge-Isanti School District Community ServicesFY 2015FY 2016Change Category Prior Year Levy (Payable 2014) Total Proposed Levy (Payable 2015) FY 2016 over FY 2015 Basic Community Ed.172, , Early Childhood Family74, ,346.71(5,247.24) Home Visiting3, , Adults w/ Disabilities13, School Aged Care40, Adjustments13,320.41(157.85)(13,478.26) Total Comm. Services317, ,975.72(18,122.31)

ISD 911 – Cambridge-Isanti School District Debt Service FY 2015FY 2016 Change Category Prior Year Levy (Payable 2014) Total Proposed Levy (Payable 2015) FY 2016 over FY 2015 Initial General Debt Svc6,244, ,514, , Reduction for Debt Excess(186,641.91)(226,569.49)(39,927.58) Adjustments(26,754.26)39, , Total Debt Service6,031, ,327, ,491.09

ISD 911 – Cambridge-Isanti School District What are the main variables that caused the changes between the preliminary levy and the final levy?

ISD 911 – Cambridge-Isanti School District Preliminary LevyFinal LevyChange General Fund$4,790,944.11$5,138, $347, Community Service Fund$298, $0 Debt Service Fund$6,327, $0 Total Levy$11,417,586.85$11,764,952.68$347, Percent Change over Prior Year21.18%24.87%3.69%

ISD 911 – Cambridge-Isanti School District General Fund SeptemberDecemberChange CategoryPreliminary LevyFinal Levy Equity471, ,780.73(1,970.96) LER/LOR1,389, ,383,243.26(5,803.39) Transition25, ,642.20(107.58) Referendum569, ,206.84(2,379.73) Safe Schools203, ,440.00(4,429.80) Career Technical43, , , Health & Safety1,280, ,327, , Building Lease282, , , Adjustments(150,752.54)(76,531.05)74, TOTAL CHANGE347,365.83

ISD 911 – Cambridge-Isanti School District Tax Capacity Rate Trend

ISD 911 – Cambridge-Isanti School District Market Value Rate Trend

ISD 911 – Cambridge-Isanti School District Example Market Value Taxes Payable 2014 Taxes Payable 2015Change % Chg.Total Dollars% $125,000125, %$658$785$ % 125,000131, %658824$ % 125,000143, %658904$ %

ISD 911 – Cambridge-Isanti School District

Available Property Tax Refunds for Interested Parties

ISD 911 – Cambridge-Isanti School District Refunds Two different refunds available from the State. Both may reduce your net taxes; however YOU MUST COMPLETE THE FORMS For help with the forms and instructions contact: Your tax professional Minnesota Department of Revenue (651) or (800) Automated(651) (800)

ISD 911 – Cambridge-Isanti School District Refunds Homestead Credit Refund (for Homeowners) 1. Household income up to $105,500 (2013) 2. You owned and lived in your home on January 2, 2015 Maximum Refund is $2,657 for Form M1PR

ISD 911 – Cambridge-Isanti School District Refunds Special Refund 1. No income limitations 2. Must reside in home on both January 2, 2014 & January 2, Net property tax must increase 12% AND more than $100 over prior year The maximum special refund a homeowner can receive is $1,000. Form M1PR Schedule 1

ISD 911 – Cambridge-Isanti School District Questions and Comments