1. Park Hill School District August 9, 2012 2012-2013 Tax Rate

3. Impact: Tax Bill on a $200,000 Home SCHOOL DISTRICT2011 TAX LEVYTAX BILLTax Bill ∆ Center 58$6.5751$2,499$0 Hickman Mills C-1$6.3217$2,402-$96 Raytown C-2$6.3200$2,402-$97 Lee's Summit R-VII$6.2979$2,393-$105 Liberty 53$6.0950$2,316-$182 Grandview C-4$5.8936$2,240-$259 North Kansas City 74$5.8898$2,238-$260 Blue Springs R-IV$5.7286$2,177-$322 Independence 30$5.5800$2,120-$378 Fort Osage R-I$5.5000$2,090-$409 Park Hill$5.4133$2,057-$441 Platte Co. R-III$4.5288$1,721-$778

8. 2011-2012 Park Hill School District Tax Levy Fund2011-2012 Levy Fund 1 – Operational/Incidental$4.7573 Fund 2 – Special Revenue/Teachers$0.0000 Fund 4 – Capital Projects$0.0453 Operational Levy$4.8026* Fund 3 – Debt Service$0.6107 TOTAL LEVY$5.4133 *Operational Levy of $4.8026 was not set to 2011-2012 Tax Ceiling

9. Tax Levy Terminology Tax LevyAuthority2011-2012 Amount 2012-2013 Amount OPERATING Maximum Authorized Levy Based on last voter approved levy rate Does not change until new election Local Voters $4.9970 Tax Rate Ceiling Adjusted annually by State Auditor due to application of Hancock Amendment, Senate Bill 711 and/or voluntary rollbacks State Auditor $4.9117$4.9264 Actual Levy Adjusted annually by local Board of Education Local Board of Education $4.8026TBD DEBT SERVICE Tax Rate Ceiling Adjusted annually by State Auditor based upon district’s upcoming debt obligations State Auditor $0.6741$0.9203 Debt Service Levy Adjusted annually by local Board of Education to pay back debt (bonds) Local Board of Education $0.6107TBD Voluntary Rollback Voluntary Rollback

10. Assessed Valuation Change Property2011-20122012-2013*Change% Real Estate 1,142,636,144 1,143,589,936 953,7920.1% Residential 780,860,902 781,842,046 981,1440.1% Agriculture 1,081,562 1,043,365 -38,197-3.5% Commercial 360,049,387 359,774,547 -274,840-0.1% Railroad & Utility 644,293 929,978 285,68544.3% Personal Property 297,801,671 323,859,62826,057,9578.8% Personal 297,167,092 322,952,753 25,785,6618.7% Railroad & Utility 634,579 906,875 272,29642.9% TOTAL 1,440,437,815 1,467,449,564 27,011,7491.9% * Includes $12,081,154 in new construction & improvements

11. Reassessment of Real Property Changes in Personal Property New Growth $1,440,437,815 2011 $1,440,437,815 2012 Reassessment of Existing Property -$11,127,362* Changes in Personal Property $ 26,057,957 New Growth (Construction & Improvements) $12,081,154 $1,467,449,564 *Results in an increase in the tax ceiling to offset effects of negative reassessment (Hancock Amendment) Assessed Valuation Change

12. FY2013 Budget FY2013 budget was created anticipating an increase in the tax levy to the operating ceiling and with no increase in the debt service levy. $4.9117 = Operational $0.6107 = Debt Service After final assessed valuation figures from the county, the tax rate ceiling moved up from $4.9117 to $4.9264 (+$0.0147).

13. $68.5 $67.3 $68.8 Scenario 3 Approved FY2013 Budget FY2013 Operational Revenue (in millions) Scenario 1 No Tax Rollup Scenario 2 Tax Rate Ceiling Operational Revenue Impact of Assessed Valuation Decrease Preliminary Calculation Current Levy = $4.8026 $1,200,000 Revenue Shortfall $300,000 Unbudgeted Revenue

14. FY2013 Budget Scenario 1 – No Tax Rollup Outcome Results in $1.2 million revenue shortfall $0 annual tax increase to homeowner with $200,000 home Proposed Action(s) Reduce FY2013 & FY2014 expenditure budgets by $1.2 million OR Decrease operating fund balance by additional 1% (19%) Reduce FY2014 expenditure budget by $1.2 million

15. FY2013 Budget Scenario 2 – Tax Rollup to Ceiling Outcome Less Deficit Budget Consistent with Long-Range Budget Plan $47 annual tax increase to homeowner with $200,000 home Proposed Action Utilize tax rollup to balance budget Continue to use rollup to fund FliP Project in 2013-2014 & 2014-2015 Use for fund balance stabilization FY2013 deficit budget shows a 1% decrease in fund balances

16. FY2013 Budget Scenario 3 – Rollup to $4.8817 Outcome Matches anticipated revenue for FY2013 budget $0.0447 voluntary rollback for two years (SB 711) $30 annual tax increase to homeowner with $200,000 home Proposed Action(s) Move forward with FY2013 budget as planned Make budget assumption for no tax ceiling increases for 2013-2014

17. Tax Rate Hearing August 23, 2012 7:00 PM Notices have been posted per MO Revised Statutes 67.110 Public notice uses the tax rollup to ceiling scenario (Scenario 2) which provides Board of Education most flexibility and transparency

18. Park Hill School District August 9, 2012 2012-2013 Tax Rate