HomeMy WebLinkAboutItem 07Memorandum
To: Mayor and City Council
From: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Date: August 28, 2013
Subject: School District Tax Levies
City of Lakeville
The City Council, at its August 28 work session, requested information on the school districts
proposed 2014 tax levies.
It is our understanding, based on discussions with District Business Managers that the
Districts have not received the final state aid allocations or levy limits from the Minnesota
Department of Revenue (and Education) and therefore are unable to provide 2014 tax levy
information at this time.
ISD 194 and 196 do have proposed levy referendums this fall. Referendum information from
the respective websites is attached. ISD 192 has not indicated whether or not they will seek a
referendum.
7
LEVY2O13
Our Schools Our Community Our Future
Our Schools; Our Community; Our Future
The Lakeville Area Public Schools Board of Education
approved a resolution on July 9, 2013 to hold a
special school district levy election on Tuesday,
November 5, 2013. There will be one question on
the ballot that will request approval of a revenue
increase of $540 per pupil unit. If successful, this
levy will provide $5.6 million per year for ten years.
Attend a Levy Information Session
on one of the following dates:
September 12, 2013 . 7:OOpm
September 26, 2013. 10:OOam
October 23, 2013 . 7:OOpm
Location:
Crystal Lake Education Center
16250 Ipava Avenue, Lakeville
Prepared and paid for by Independent School District 194 (Lakeville Area Public Schools),
8670 210th Street West, Lakeville, MN 55044. This publication is not circulated on
behalf of any candidate or ballot question.
November 5 2013
The funding will be used by the district to stabilize
the budget, maintain current programming,
reduce class size, and begin to integrate science,
technology, engineering and math concepts at
the elementary and middle school levels. The
net tax impact to an average $230,000 home is
approximately $167 per year or $14 per month.
For more information:
Call the Levy Information Line at 952 - 232 -2027. This is
a voicemail line. Please leave a message and you will
receive a call back.
Check the district website at www.isd194.k12.mn.us
Like the district Facebook page at
www.facebook.com/isd194
Follow us on Twitter at
https : / /twitter.com /LakevilleAreaPS
Lakeville School District No. 194
Calculation of Estimated Referendum Authority for 2014 -15
Estimated Revenue Under Prior Law
1. Voter - Approved Referendum Allowance (uncapped)
2. Res. Marginal Cost Pupil Units
3. Initial Referendum Revenue ( #1 x #2)
4. Est. Alternative Attendance Adjustment
5. Total Uncapped Revenue ( #3 + #4)
6. Est. Capped Referendum Allowance
7. Total Capped Referendum Revenue (#6 x #2)
8. Total Capped Revenue (#4 + #7)
Conversion of Revenue Under New Law
9. Adjusted Pupil Units
10. Initial Referendum Allowance ( #5 / #9)
11. Location Equity Revenue Allowance
12. Revised Referendum Allowance ( #10 - #11)
13. Standard Cap on Referendum Authority
14. Alternate Cap on Referendum Authority
15. District Cap on Ref. Authority (greater of #13 or #14)
16. Capped Referendum Allowance (lesser of #12 or #15)
17. Total Capped Referendum Revenue ( #9 x #16)
18. Total Refer. + Location Equity Rev. ( #9 x ( #11 + #16))
19. Change in Revenue with No 2013 Election ( #18 - #8)
Additional Revenue Available With 2013 Election
20. Additional Available Ref. Allowance ( #15 - #16)
21. Additional Available Revenue ( #9 x #20)
880.08
12,553.90
11, 048,436
(17,774)
11, 030, 662
880.08
11,048,436
11,030,662
11,530.00
956.69
424.00
532.69
1,845.00
956.69
1,845.00
532.69
6,141, 942
11,030,662
1,312.31
15,130, 908
EHLERS
G LEADERS IN PUBLIC FINANCE
July 24, 2013
Year Taxes are Payable
Fiscal Year
2013
2013 -14
2014
2014 -15
Payable 2013
Levy
Existing
Authority
Proposed
Authority
Total
1. Est. Adjusted Pupil Units (APU) (RMCPU for FY 14) *
12,759.58
11,530.00
2. Est. Resident Pupil Units (RPU)
11,756.81
3. Est. Net Gain (Loss) in Pupil Units - Alt. Att. (FY 14 only)
- 298.74
4. Net Referendum Authority per APU (RMCPU for FY 14)
866.45
532.69
540.00
1,072.69
5. Initial Referendum Revenue ( #1 x #4)
$11,055,538
$6,141,916
$6,226,200
$12,368,116
6. Referendum Market Value (RMV)
5,585,130,559
5,306,028,165
7. RMV per Resident Pupil Units (#6 / #2)
437,721
451
315
FIRST TIER OF REVENUE (FY 15 -)
8. Revenue per Pupil Unit (lesser of #4 or $300)
300.00
0.00
300.00
9. Revenue ( #1 x #8)
3,459,000
0
3,459,000
10. State Equalizing Factor
880 000
11. Levy Portion of Revenue (lesser of 100% or #7 / #10)
51.29%
12. Aid Portion of Revenue (100% - #11)
48.71 %
13. First Tier Aid ( #9 x #12)
1,685,023
0
1,685,023
SECOND TIER OF REVENUE (First tier for FY 14)
14. Revenue per Pupil Unit (lesser of $460 or #4 - #8)
700.00
232.69
227.31
460.00
15. Revenue ( #1 x #14)
8,931,706
2,682,916
2,620,884
5,303,800
16. State Equalizing Factor
476,000
510 000
17. Levy Portion of Revenue (lesser of 100% or #7 / #16)
91.96%
88.49%
18. Aid Portion of Revenue (100% - #17)
8.04%
11.51%
19. Second Tier Aid ( #15 x #18)
718,279
308,717
301,579
610,296
THIRD TIER OF REVENUE (Second tier for FY 14)
20. Revenue per PU ((lesser of (25% of Basic Allow) or #4) - #8 - #14)
166.45
0.00
312.69
312.69
21. Revenue ( #1 x #20)
2,123,832
0
3,605,316
3,605,316
22. State Equalizing Factor
270,000
290 000
23. Levy Portion of Revenue (lesser of 100% or #7 / #22)
100.00%
100.00%
24. Aid Portion of Revenue (100% - #23)
0.00%
0.00%
25. Third Tier Aid ( #21 x #24)
0
0
0
0
TOTALS
26. Initial Referendum Aid ( #13 + #19 + #25)
718,279
1,993,740
301,579
2,295,319
27. Tax Base Replacement Aid
98,430
98,430
0
98,430
28. FY 2015 Old Law Referendum Aid - Location Equity Aid
0
404,440
404,440
29. Net Referendum Aid (greater of 0 or ( #26 - #27) or #28)
619,849
1,895,309
301,579
2,196,889
30. Certified Referendum Levy (#5 - #27 - #29)
10,337,259
4,148,176
5,924,621
10,072,797
31. Fiscal Disparities Distribution Amount
1,106,746
1,106,746
0
1,106,746
32. Net Levy ( #30 - #31) "'
9,230,513
3,041,430
5,924,621
8,966,051
33. Taxable Referendum Market Value +
5,306,028,165
5,465,209,010
Est. Percentage change in value
- 5.00%
3.00%
34. Tax Rate for referendum ( #33/#32)
0.17396%
0.05565%
0.10841%
0.16406%
35. Aid Adjustment for Open Enrollment ( #3 x ( #29/ #1)) FY 14 Only
(14,513)
0
0
0
36. Total Referendum Aid ( #27 + #29 + #35)
703,766
1,993,740
301,579
2,295,319
37. Total Referendum Levy ( #32)
10,337,259
4,148,176
5,924,621
10,072,797
38. Total Referendum Revenue ( #36 + #37)
11,041,025
6,141,916
6,226,200
12,368,116
ESTIMATED EQUITY REVENUE
39. Est. Equity Aid
111,018
195,427
(62,207)
133,220
40. Est. Equity Levy
1,269,475
1,502,942
(478,406)
1,024,536
41. Est. Equity Revenue
1,380,493
1,698,369
(540,613)
1,157,756
42. Tax Rate for Equity Revenue (#40 / #33)
0.02393%
0.02750%
- 0.00875%
0.01875%
ESTIMATED LOCATION EQUITY REVENUE
43. Est. Location Equity Aid
0
562,534
0
562,534
44. Est. Location Equity Levy
0
4,326,186
0
4,326,186
45. Est. Location Equity Revenue
0
4,888,720
0
4,888,720
46. Tax Rate for Location Equity Revenue (#44 / #33)
0.00000%
0.07916%
0.00000%
0.07916%
ESTIMATED TOTAL REVENUE (Referendum + Equity + Location Equity)
47. State Aid ( #36 + #39 + #43)
814,784
2,751,701
239,372
2,991,073
48. Tax Levies ( #37 + #40 + #44)
11,606,734
9,977,304
5,446,215
15,423,519
49. Total Revenue ( #38 + #41 + #45)
12,421,518
12,729,005
5,685,587
18,414,592
50. Combined Tax Rate ( #34 + #42 + #46)
0.19789%
0.16231%
0.09966%
0.26197%
Lakeville School District No. 194
Estimated Referendum Revenue and Tax Rates
Proposed New Referendum Levy for 2014 -15
(Including Equity and Location Equity Revenue)
Pupils units for 2013 -14 are estimated pupil units used to compute payable 2013 taxes. Pupil units for 2014 -15 are the most recent pupil unit estimates.
Fiscal disparities distribution amounts for taxes payable in 2014 are estimated to be the same as for taxes payable in 2012.
Levy amounts shown above include the "initial levy limitation" only, and do not include adjustments for prior years' levies.
For all referendum authority, calculations are based on the total RMV of the district, excluding JOBZ property.
EHLERS
0 LEADERS IN PUBLIC FINANCE
New Referendum Revenue
$540.00 Per Pupil Unit
July 24, 2013
OpRefer 13c
Type of Property
Estimated
Market Value
Estimated Taxes for
Referendum Only*
$100,000
$108
125,000
136
150,000
163
175,000
190
200,000
217
Residential
230,000
249
Homesteads,
250,000
271
Apartments,
and Commercial-
300,000
350,000
325
379
Industrial Property
400,000
434
450,000
488
500,000
542
600,000
650
800,000
867
1,000,000
1,084
2,000,000
2,168
Lakeville School District No. 194
Analysis of Tax Impact for
Potential Referendum Levy
July 24, 2013
New Referendum Revenue
$540.00 Per Pupil Unit
Est. Market Value Rates, Taxes Payable
in 2014 (for Referendum Only)
Taxes for
Proposed Levy
0.10841%
* The figures in the table are based on school district taxes for the referendum levy
only, and do not include tax levies for other purposes. Tax increases shown above
are gross increases, not including the impact of the state Property Tax Refund
( "Circuit Breaker ") program. Many owners of homestead property will qualify for a
refund, based on their income and total property taxes. This will decrease the net
effect of the referendum levy for many property owners.
NOTE: Agricultural property will pay taxes for the proposed referendum
based only on the value of the house, garage and one acre. Seasonal
recreational residential property (i.e., cabins) will pay no taxes for the
proposed referendum.
EHLERS
0 LEADERS IN PUBLIC FINANCE
OpRefer 13c
Estimated
Type of Property Market Value
2013 to 2014
Est. Taxes Pay -
able in 2014*
$100,000
-$36
$108
$72
125,000
-44
136
92
150,000
-53
163
110
175,000
-62
190
128
Residential 200,000
-71
217
146
Homesteads, 230,000
-82
249
167
Apartments, 250,000
-89
271
182
and Commercial- 300,000
-107
325
218
Industrial Property 350,000
-125
379
254
400,000
-142
434
292
450,000
-160
488
328
500,000
-178
542
364
600,000
-213
650
437
800,000
-285
867
582
1,000,000
-356
1,084
728
2,000,000
-712
2,168
1,456
Lakeville School District No. 194
Analysis of Tax Impact for Referendum Levy
July 24, 2013
* The figures in this column are based on school district taxes for the proposed increase in referendum revenue
only, and do not include tax levies for other purposes. Tax increases shown above are gross increases, not
including the impact of the state Property Tax Refund ( "Circuit Breaker ") program. Many owners of homestead
property will qualify for a refund, based on their income and total property taxes. This will decrease the net effect
of the referendum levy for many property owners.
** The figures in this column show the estimated decrease in taxes from 2013 to 2014 (for the combination of
referendum levy, equity levy,and location equity levy), if the district did not hold a referendum electionin 2013.
The tax decrease is primarily a result of changes made by the 2013 Legislature.
NOTE: Agricultural property will pay taxes for the proposed referendum based only on the value of the
house, garage and one acre. Seasonal recreational residential property (i.e., cabins) will pay no taxes
for the proposed referendum.
EHLERS
0 LEADERS IN PUBLIC FINANCE
OpRefer 13c
Est. Decrease
in Taxes
Proposed
Increase
Additional Revenue /Pupil Unit
for Existing
$540.00
Estimated
Est. Increase in Referendum Revenue
Referendum **
$6,226,200
Net Change
Est. Market Value Tax Rate
- 0.03558%
0.10841%
in Taxes
Lakeville School District No. 194
Analysis of Tax Impact for Referendum Levy
July 24, 2013
* The figures in this column are based on school district taxes for the proposed increase in referendum revenue
only, and do not include tax levies for other purposes. Tax increases shown above are gross increases, not
including the impact of the state Property Tax Refund ( "Circuit Breaker ") program. Many owners of homestead
property will qualify for a refund, based on their income and total property taxes. This will decrease the net effect
of the referendum levy for many property owners.
** The figures in this column show the estimated decrease in taxes from 2013 to 2014 (for the combination of
referendum levy, equity levy,and location equity levy), if the district did not hold a referendum electionin 2013.
The tax decrease is primarily a result of changes made by the 2013 Legislature.
NOTE: Agricultural property will pay taxes for the proposed referendum based only on the value of the
house, garage and one acre. Seasonal recreational residential property (i.e., cabins) will pay no taxes
for the proposed referendum.
EHLERS
0 LEADERS IN PUBLIC FINANCE
OpRefer 13c
Our Children. Our Future. Our Choice.
Why a Levy Vote
State funding increases for
education have been less
than inflation for 10 years,
averaging 1.5% per year.
District 196 has made
$34 million in budget
adjustments in the last four years,
including cutting nearly 200 jobs.
Despite budget cuts and two years
of salary freezes, the district faces
a projected $30 million budget
shortfall the next two years. $4 million
in budget adjustments and efficiencies
were already identified and will be made
for 2014 -15.
2000
1500
1000
500
INDEPENDENT SCHOOL DISTRICT 196 • Rosemount -Apple Valley -Eagan Public Schools
Operating Levy Authority for 2013 -14:
South Suburban Conference Districts
LEVY VOTE
November 5, 2013
One Ballot Question
Request to revoke the existing levy and
replace it with a new 10 -year levy for $375
more per pupil. This would provide the
district an additional $10 million per year,
which equates to 3% of the district's total
annual operating budget.
What It Would Cost
The net tax impact of revoking the existing
levy and replacing it with the new levy
would be approximately $15 per month to
the owner of the average -value home in the
district which is $225,000.
If Approved
• Avoid cuts of $6 million
in 2014 -15 and lessen the
impact of a projected $20
million shortfall in 2015 -16.
• Maintain the district's "Triple
A" philosophy of academics,
the arts and athletics, and
continue to offer quality programs in
early childhood learning, STEM and
college- credit opportunities.
If Not Approved
$6 million in budget cuts for 2014 -15,
including:
• Class size increases at all grades;
• Cuts to curricular and cocurricular
programs, including gifted /talented;
• Increased participation fees, and
• Elimination of 5th grade band, 9th grade
B -team sports and the Developmental
Psychology program at the high schools.
Initiate a process to identify a projected
$20 million in additional cuts for 2015 -16.
For context, $20 million would be the
equivalent of approximately 300 teaching
positions.
For more information, go to:
www.District196.org/Levy2013
Prepared and paid for by Independent School District 196 (Rosemount -Apple Valley -Eagan Public Schools), 3455 153rd St. W., Rosemount, MN 55068.
This publication is not circulated on behalf of any candidate or ballot question.
INDEPENDENT SCHOOL DISTRICT 196 • Rosemount -Apple Valley -Eagan Public Schools
Our Children. Our Future. Our Choice.
A District of Choice
District 196 is the fourth
largest in the state, serving
150,000 residents and
27,000 students. 40% of
households have school -aged
children, 23% of students
live in poverty and 28% are
students of color. The district has an
annual operating budget of $300 million
and is regularly recognized for excellence
in financial reporting.
District 196 has highly regarded
curricular and cocurricular programs
in academics, the arts and athletics that
are state and nationally recognized.
87% of school -aged children who live
in District 196 attend District 196
schools. This capture rate of nearly
9 of 10 students is one of the highest in
the state, according to a former state
demographer.
District 196 remains a district of
choice among families moving into
the area, according to local Realtors
and property listings that highlight
"District 196 schools."
LEVY VOTE
November 5, 2013
Resident Survey
Decision Resources, Inc.
conducted a telephone
survey of 400 randomly
selected District 196
residents in July and found
that:
• 91 % rated the quality of education in
District 196 as excellent or good;
• 88% agree that District 196 provides
good value for the public's investment
in schools;
• 87% rated the performance of teachers
as excellent or good, which the pollster
reported as being among the highest
ratings in the Midwest;
• 83% believe the district does a good
job preparing students to be college -
and career -ready upon graduation, and
• 79% believe the district is held
accountable for the quality of
education provided.
For more information, go to:
www.District196.org/Levy2013
Prepared and paid for by Independent School District 196 (Rosemount -Apple Valley -Eagan Public Schools), 3455 153rd St. W., Rosemount, MN 55068.
This publication is not circulated on behalf of any candidate or ballot question.
Welcome to Independent School District 196
Rosemount -Apple Valley -Eagan
Public Schools
INDEPENDENT SCHOOL DISTRICT
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and Levies
Tax Impact Table
Net Tax Impact of Proposed Levy Question
Annual Annual
Taxable Market Taxes Taxes
Value Revoked Proposed
Levy Levy
$ 100,000 ($78) $ 160 $82
$150,000 ($118) $240 $122
S175,000 ($137) $280 $143
$200,000 ($157) $320 $163
$300,000 ($235) $479 $244
$400,000 ($313) $639 $326
$500,000 ($392) $799 $407
*Average -value home in District 196 in 201 3
Net Change
in Annual
Taxes
$184
$225,000* ($176) 5360 (approx.
Si 5 /month)
$250,000 (5196) $400 $204
Page 1 of 2
Enrolling Your Child, Employment Maps and Directories
To calculate the net tax impact for your specific property value, you can use the Tax Impact
Calculator.
http: / /www.district 1 96.org/ district /schoolboard/ Elections /20131105 /TaxlmpactTable.cfm 9/3/2013