ISD #2184, Luverne, MN Truth in Taxation Report December 18, 2014

Truth in Taxation Requires a school district to announce the time and place of a public meeting to discuss the proposed property tax levy and current budget.

Current Budget The school district has eight different revenue and expenditure funds. Tax levy is one of the primary sources of revenue for five of them. 1.GENERAL FUND LEVY - includes Transportation and Capital Outlay a.Based on student enrollment. b.The local referendum levy is also part of this fund. c.Transportation - to and from school d.Transportation - Special Education e.Provides funding for facilities maintenance and instructional equipment. f.Provides funds for Health and Safety code compliance, asbestos removal, underground storage tank replacement, and safety requirements.

2.COMMUNITY EDUCATION FUND LEVY a.Based on the adult population in the District. b.Early Childhood levy is based on the number of children under 5 years of age. 3.DEBT SERVICE FUND LEVY Based on annual debt retirement schedules. Annual levy is what is needed to pay off bonds. Current debt is a result of the voter approved Bond Issue for the Elementary School Building. The School Board refunded these bonds in the fall of 2014, saving approximately $140,000 in interest. The last payment will be February 2018.

Operating Referendum Levies The Luverne School District has two operating referendums $401.27/RMCPU - Our local residents voted in the fall of (2011) to renew this referendum. $700/RMCPU was approved in 2006 and will expire in (Will require an election in November, 2015, to renew) Referendum Levy Authority $467, and Referendum Aid $573, = $1,040,194.94

REVENUE SOURCES 13% LOCAL 76% STATE 4% FEDERAL 7% SALES & OTHER

REVENUE BUDGET –FUND ACTUAL PRELIM GENERAL $10,974,802 $11,011,479 FOOD SERVICE 595, ,764 TRANSPORTATION 813, ,325 COMMUNITY ED 496, ,109 CAPITAL OUTLAY 370, ,285 DEBT SERVICE 1,011,433 1,012,749 TRUST 59,158 68,125 CHILD GUIDE 47,907 48,000 TOTAL $14,368,438 $14,373,836

EXPENDITURE BUDGET –FUND ACTUAL PRELIM GENERAL $10,559,162 $ 11,175,497 FOOD SERVICE 609, ,846 TRANSPORTATION 638, ,407 COMMUNITY ED 442, ,532 CAPITAL OUTLAY 489, ,919 DEBT SERVICE 1,016,250 1,016,250 TRUST 111,932 26,885 CHILD GUIDE 45,401 48,504 TOTAL $13,912,587 $14,639,840

Summary of Economics 1.After several years of declining enrollment, Luverne’s enrollment has remained constant – , –1, –1, , –1,198

2. The state’s normal hold back of 10% has been reinstated in The June 30, 2014, fund balance included $453,209 State Aid Receivables and $71,964 Tax Shift, totaling an amount due from the state of $525,173. However, on June 30, 2012, the total aid and tax shift held by the state was $3,300, State Formula Allowance $5, $5, $5, $5, $5,831 State Adj &Pupil Weighting Chg

State Weightings for Pupil Units FY FY 2015 & Later Pre-Kgn Hcp Kgn Reg Kgn Grades Grades Grades

2014 Pay 2015 Levy FundPay 14 LevyPay 15 LevyInc/Dec.% General$1,392,494.31$1,323, $68, Com Serv$ 97,503.75$ 102, $ 4, Debt Serv$1,012,563.16$1,030, $17, Total$2,502,561.22$2,456, $46,