WARREN TOWNSHIP SCHOOL DISTRICT 2013 – 2014 PROPOSED BUDGET Dr. Tami Crader, Superintendent of Schools Warren Township Board of Education Mrs. Patricia Leonhardt, Business Administrator/Board Secretary

SCHOOL DISTRICT BUDGETING SESSION 4 OF 4 REVENUE CALCULATIONS FEBRUARY 25, 2013

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS The two largest revenue sources are the Local Tax Levy and State Aid.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS STATE AID The ‘norm’ is to budget General Fund (Fund 10) state aid LEVEL to the amount received the prior year. For the 2012/13 School Year, this amount was $1,187,441. (This year, the actual amount will be announced on Thursday, Feb. 28.)

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY The base tax levy increase for the General Fund (Fund 10) is 2%. Additionally, additional tax levy growth is allowed for banked cap (tax levies below cap for and ), and well as certain adjustments. For purposes of this presentation, the example increase will be 2%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY – EXAMPLE Tax Levy - $37,026,216 Adjusted by 2% - $ 37,766,740

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS The total assessed value for the ratables in the township changes every year. For 2012/13, this dollar amount was $4,007,517,982 For 2013/14, this dollar amount is $4,112,508,628, a growth of 2.62%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS The value of the average residential property in the township changes every year. For 2012/13, this value was $625,650 For 2013/14, this value is $643,250, a growth of 2.81%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY – What does this mean for the homeowner? The total township tax levy is divided by the total assessed value of property in the township to arrive at the school tax per $100 of assessed valuation.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY – EXAMPLE $ 37,766,740 (Gen Fund Tax Levy) * $100 $ 4,112,508,628 (Total Assessed Value) Result.918 per $100 assessed value

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY – EXAMPLE $ 603,833 (Debt Service Tax Levy) * $100 $ 4,112,508,628 (Total Assessed Value) Result.015 per $100 assessed value So total is.933 per $100 (.918 plus.015)

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS TAX LEVY – EXAMPLE (con’t) Using the 2013 average assessed residential value of $643,250, the total tax levy would be $6,002. (.933 * 6,432.50)