1. August 23, 2007 FY 2007/2008 Tax Levy

2. Special Administrative Board of the Transitional School District of the City of St. Louis, as a political subdivision, is authorized to set tax levies Public notice must be posted one week prior to public hearing Tax levies are set annually Proposed tax rates must be submitted to the State Auditor by Sept 1 st (certification) FY 2007/2008 Tax Levy

3. Points of interest This was the year for reassessments Increase in real estate (25% residential, 19% commercial ) 5% decrease in personal property (4 th straight year for declines) There was also a $66m ( 87%) increase in TIF assessments ($76m to $142m) FY 2007/2008 Tax Levy

4. Points of interest (contin) Anticipated increase in protested taxes Increase in foreclosed property Last operating levy increase was 1991 FY 2006/2007 Tax Levy

5. The tax levy should be apportioned as follows: $0.0000Teachers Fund $3.1322 Incidental Fund $.0000Capital Projects Fund $.6211 Debt Service Fund $3.7533*Total per each $100 of assessed valuation * As reviewed by State Auditors office FY 2007/2008 Tax Levy

6. Prior year tax rate: $0.0000 Teachers $3.3982 Incidental $0.0000 Capital $3.3982 Operating $0.6211 Debt $4.0193Total rate Proposed tax rate: $0.0000 Teachers $3.1322 Incidental $0.0000 Capital $3.1322 Operating $0.6211 Debt $3.7533 Total rate ($0.2660)

7. Why is there a decrease in the tax rates when assessed values have increased significantly this year? There is an involuntary rollback of the General Operating rate of $.2660 to limit the amount of revenue growth permitted by State law. General Operating voter approved tax rate ceiling $3.75 The proposed rate is $0.6178 below the ceiling FY 2007/2008 Tax Levy

8. Why is the debt service rate being maintained at $0.6211? This rate will allow the District to retire bonds early, which will save interest and reduce principal expenses Anticipated savings of approx. $10.4m over 18 years Reserves sufficient to pay current year debt and maintain a full year's reserve

9. FY 2007/2008 Tax Levy Impact of proposed rates on taxpayer:

10. Other discussion points Tax collection rate of 92% (per FY06 audit) Current year revenue loss of $12m ($148m vs. $164m) One cent levy = $438,296 FY 2007/2008Tax Levy

11. Special Administrative Board approval of Resolution Setting the Tax Rate

12. Appendix

13. FY 2007/2008 Tax Levy