2010 Truth in Taxation

Truth in Taxation Report ISD 51, Foley, Minnesota December 14, 2010 Presenter: Michelle Czech, Director of Finance

Truth in Taxation Law
Minnesota’s Truth in Taxation Law requires that cities, counties and school districts follow certain steps before adopting a tax levy for the following year. One important part of that law requires a mailed notice to each property owner in the county, which describes the tax levies proposed by the city, county and school district and what percent increase (decrease) such a levy would mean in dollars.

Truth in Taxation Public Hearing
Part 2 of the law - “Truth in Taxation”
Public hearing for each taxing jurisdiction
Specific type of public notice
Tonight is the school district’s public hearing

Requirements of Truth in Taxation Hearing
1. Tax levy must be for taxes payable 2011
2. Discussion must include:
Current budget
Proposed percent increase/decrease of levy
Reasons for the increase/decrease
4. Public must be given time to comment
Minnesota Statute 275.065

Judge Randy Peterson Former Senator Education Finance Committee
“ As a practical matter, school districts really don’t have very much authority, any meaningful authority anyway, over their local taxing decisions. With the exception of decisions to build school buildings and the excess-levy referendums...school district taxing decisions are pretty much a matter of state law...”

School District Budget Current School Year 2010-2011

School District Funds
General Fund
Community Education Fund
Food Service Fund
Building Fund
Debt Service Fund

Budget 2010-2011

General Fund
Based on student enrollment
Local operating levies
Transportation
Special Education
Capital
Health and Safety
Federal Grants

End of Year Adjusted Average Daily Membership

General Fund by Department

General Fund Salaries

Community ED Fund
Based on the adult population in the District
Early Childhood is based on the number of children under 5 years of age
Participation Fees

FOOD SERVICE FUND
Based on Federal Grant of free/reduced lunch
Based on student participation

Other District Funds
Building Fund
One day bond sales
Elementary building project
DEBT SERVICE FUND
Based on Maximum Effort Loan through 2019
Pay the District’s Bond Payments

Schools District Levy
2010 Payable 2011
2011-2012 School Year

Authority for School Levies
Set by State Formula
Board Approved within State Law
Voter Approved

How Your School Taxes Are Spent

Levy is Increasing by $71,403 Or 1.94%

Levy Percentage by Fund

Levy Changes for Pay 2011
Increase of $132,452 in Debt Service
Decrease of $40,726 in Health & Safety- General Levy

General Education Aid & Levy

Detail of General Fund $ 14,806,779.00 $ 806,975.52 $ 14,314,616.00 TOTAL $ 13,852,275.00 4% $ 497,087.39 $ 13,655,620.00 UNRESERVED+BASIC SKILLS $ 88,169.00 $ - $ 65,000.00 ALT LEARNING CENTER $ - $ - $ - SEVERANCE-DESIGNATED $ 185,000.00 $ - $ - ACTIVITIES-DESIGNATED $ 50,500.00 $ - $ - STAFF DEVELOPMENT-BLDG $ 23,139.00 $ - $ 23,139.00 GIFTED AND TALENTED $ - $ - $ - DISABLED ACCESS $ 57,996.00 100% $ 57,766.80 $ 58,530.00 SAFE SCHOOLS $ 7,000.00 83% $ 62,244.50 $ 75,101.00 DEFERRED MAINTENANCE $ 476,500.00 40% $ 149,988.84 $ 373,235.00 OPERATING CAPITAL $ 66,200.00 100% $ 39,887.99 $ 63,991.00 HEALTH & SAFETY EXPENDITURES LEVY SUPPORT REVENUE DESCRIPTION 2011 2011 PROPERTY TAX 2011

COMMUNITY EDUCATION $ 440,343.00 21% $ 98,424.47 $ 461,060.00 TOTAL $ 346,010.00 19% $ 67,962.38 $ 357,861.00 COMMUNITY EDUCATION $ 94,333.00 30% $ 30,462.09 $ 103,199.00 ECFE EXPENDITURES LEVY SUPPORT REVENUE 2011 2011 PROPERTY TAX 2011

Debt Service Aid & Levy

Causes of Property Tax +/-
1. Changes in market values.
2. Changes in class rates/history.
3. Changes in state formula.
4. Voter approved Referendums.

Changes in Market Value
Market Values are final
Discussed at:
Local Board Review
County Board of Equalization
Final Taxable Market Value
May reflect a reduction (limited value law)
May exclude improvements to property

ISD 51 Resolution

2010 Truth in Taxation

by dvoigt51

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2010 Truth in Taxation Presentation Transcript