1. St. Francis Public School Proposed Levy Payable 2018

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

3. State Historical Information
Minnesota Statute 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

4. 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

5. The Levy Cycle PAY Certified FY 2019 December 2017 2017 2018
B Budget
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)

6. LEVY CYCLE

7. Average Daily Membership

8. Average Daily Membership

9. 16-17 Revised Budget Revenues General Fund

10. 16-17 Revised Expense General Fund by Object Series $$51,643,544

11. 17-18 Adopted General Fund

12. 17-18 Adopted General Fund Revenues

13. 17-18 Adopted General Fund Budget by Object Series

14. 17-18 Adopted Budget

15. 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

16. HISTORICAL LEVY LIMITATION

17. 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.

18. 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

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

20. General Fund Proposed Levy

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

22. Community Service Proposed Levy

23. 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

24. Debt Service Fund Levy

25. Pay 2018 Proposed Levy by Fund

26. TRUTH AND TAXATION CATEGORIES

27. 2017 PAY 2018 TNT CATEGORY

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

29. Market Value

30. 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 would need to increase by another $626 (10.3%) to have kept pace with inflation

31. General Education Formula

32. 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

33. 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.

34. 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.