ISD 911 – Cambridge-Isanti School District Presented By: Robyn Vosberg-Torgerson Director of...
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ISD 911 – Cambridge-Isanti School District Truth in Taxation December 18, 2014 Presented By: Robyn Vosberg-Torgerson Director of Finance and Operations
ISD 911 – Cambridge-Isanti School District Presented By: Robyn Vosberg-Torgerson Director of Finance and Operations
ISD 911 Cambridge-Isanti School District Presented By: Robyn
Vosberg-Torgerson Director of Finance and Operations
Slide 2
ISD 911 Cambridge-Isanti School District Truth in Taxation Law
Minnesotas Truth in Taxation Law began back in 1988. Requires
cities, counties and school districts to follow two important steps
before adopting a tax levy for the following year. Mailed Notice to
each property owner in the county including: Tax levies proposed by
city, county, and school district What percent increase/(decrease)
such a levy would mean in dollars Pertains to a Truth in Taxation
public hearing for each taxing jurisdiction, including a specific
public notice. You are here tonight as part of the school districts
public hearing process.
Slide 3
ISD 911 Cambridge-Isanti School District Requirements of the
Truth in Taxation Hearing Current budget must be discussed.
Discussion of taxes payable for the next year (2015). Provide and
discuss information on the sources of revenue, and the distribution
of the revenue and expenditures. The proposed percent increase
(decrease) and the reasons for the change. Public must be given
time to comment and ask questions. - Minnesota Statute 275.065
Slide 4
ISD 911 Cambridge-Isanti School District Current School Year
2014-2015
Slide 5
ISD 911 Cambridge-Isanti School District
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How Does Our District Compare? Total Property Tax Revenue per
Average Daily Membership (ADM) District 911$ 379 per ADM Metro
Average$ 2,101 per ADM State Wide$ 1,608 per ADM (2012-2013
Data)
Slide 11
ISD 911 Cambridge-Isanti School District How Does Our District
Compare? Total Operating Expenditures per Average Daily Membership
(ADM) District 911$ 8,263 per ADM Metro Average$10,650 per ADM
State Wide$10,124 per ADM (2012-2013 Data)
Slide 12
ISD 911 Cambridge-Isanti School District
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Slide 14
School District Levy 2014 Payable 2015 2015-2016 School Year
Fiscal Year 2016
Slide 15
ISD 911 Cambridge-Isanti School District Contrast of
City/Township/County Levy Cycle to School District Levy Cycle
Slide 16
ISD 911 Cambridge-Isanti School District Key Steps in
Determining School District Property Taxes County Assessor
determines the market value for each piece of property in the
county. The legislature establishes formulas to determine how much
of the taxes should be paid by each type of property
Slide 17
ISD 911 Cambridge-Isanti School District Key Steps in
Determining School District Property Taxes County Auditor
calculates tax capacity for each parcel of property and the total
tax capacity for each school district. The legislature sets
formulas that determine school district levy limits or the maximum
amounts of taxes that districts can levy in each category.
Slide 18
ISD 911 Cambridge-Isanti School District Key Steps in
Determining School District Property Taxes Minnesota Department of
Education (MDE) calculates detailed levy limits for each school
district based on formulas approved by the Legislature. The School
Board adopts a proposed levy in September, based on the limits set.
After a public hearing, the Board adopts the final levy in
December.
Slide 19
ISD 911 Cambridge-Isanti School District Key Steps in
Determining School District Property Taxes The County Auditor
divides the final levy by the districts total tax capacity to
determine the tax rate needed to raise the proper levy amount. The
Auditor multiplies this tax rate times each propertys tax capacity
to determine the school tax for that property.
Slide 20
ISD 911 Cambridge-Isanti School District Legislation breaks
property into numerous categories Residential Homestead Non
Homestead Apartments Commercial/Industrial Seasonal Recreational
Agricultural Homestead Non Homestead Other
Slide 21
ISD 911 Cambridge-Isanti School District School District Funds
The school district has three different funds that include tax levy
as a source of revenue. General Fund Community Service Fund Debt
Service Fund
Slide 22
ISD 911 Cambridge-Isanti School District General Fund Levy
Career and Tech Safe Schools Operating Capital Deferred Maintenance
Building Lease Health and safety Equity Transition Location
Equity/Local Optional Revenue Board Approved Referendum
Slide 23
ISD 911 Cambridge-Isanti School District Community Service Fund
Levy Accounts for the lifelong learning programs in the District
Levy are based on: a)Adult population of the District b)Early
childhood levy is based on the number of children under 5 years of
age
Slide 24
ISD 911 Cambridge-Isanti School District Debt Service Fund Levy
Levy to pay off principal and interest payments for building
projects approved by the voters and alternative facility bonds
which relate to health and safety projects Based on the annual debt
retirement schedules
Slide 25
ISD 911 Cambridge-Isanti School District School District Funds
The School District has three other funds that do not include tax
levy as a source of revenue and we are the fiscal host or contract
for three cooperatives. Food Service Fund Building Construction
Fund Internal Service Fund Cooperatives: Oak Land Vocational
Cooperative ECMECC Rum River Special Education Cooperative
Slide 26
ISD 911 Cambridge-Isanti School District How are your School
Property Taxes Spent? General Fund43.68% Community Service Fund
2.54% Debt Service Fund53.78% Total Levy Before Credits100.00%
Slide 27
ISD 911 Cambridge-Isanti School District The School District
Levy is increasing by : $2,343,083.58 Or24.87%
Slide 28
ISD 911 Cambridge-Isanti School District The School District
Levy is Increasing in the General Fund by: $2,064,714.80 Decreasing
in the Community Service Fund by: ($18,122.31) Increasing in the
Debt Service Fund by: $296,491.09
Slide 29
ISD 911 Cambridge-Isanti School District School District Levy
Why did the dollar levy increase/(decrease) the amount that it did?
Legislation Levy Ratio Health and Safety Change in Population
Change in Building age Debt Service Payment Schedule
Slide 30
ISD 911 Cambridge-Isanti School District What are the main
variables that caused our property tax increases and
decreases?
Slide 31
ISD 911 Cambridge-Isanti School District History 2013 - Present
2013 Legislature $300 $212 Bond Referendum Alternative Facility
Bond 2014 Legislature Additional $212 Health & Safety Lease
Levy
Slide 32
ISD 911 Cambridge-Isanti School District General FundFY 2015FY
2016Change Category Prior Year Levy (Payable 2014) Total Proposed
Levy (Payable 2015) FY 2016 over FY 2015
Equity442,536.89469,780.7327,243.84 Location
Equity714,258.241,383,243.26668,985.02
Transition26,472.2925,642.20(830.09) 1st Tier Board Approved
Referendum 585,771.38567,206.84(18,564.54) Equity & Transition
Adjustments(159.85)44,983.1445,142.99 Total RMV
Levies1,768,878.952,490,856.17721,977.22
Slide 33
ISD 911 Cambridge-Isanti School District General Fund FY 2015FY
2016Change Category Prior Year Levy (Payable 2014) Total Proposed
Levy (Payable 2015) FY 2016 over FY 2015 Student
Achievement64,184.6660,723.11(3,461.55) Operating
Capital280,237.18282,346.622,109.44
Reemployment75,000.0060,000.00(15,000.00) Safe
Schools203,157.00199,440.00(3,717.00) Career
Technical62,389.1745,318.05(17,071.12) OPEB
Levy65,000.0074,655.009,655.00 Health &
Safety240,347.451,327,927.551,087,580.10 Deferred
Maintenance194,790.57197,428.402,637.83 Building
Lease286,646.10521,129.11234,483.01
Adjustments(167,035.94)(121,514.07)45,521.87 Total Gen Fund NTC
Levies1,304,716.192,647,453.771,342,737.58 TOTAL GENERAL
FUND3,073,595.145,138,309.942,064,714.80
Slide 34
ISD 911 Cambridge-Isanti School District Community ServicesFY
2015FY 2016Change Category Prior Year Levy (Payable 2014) Total
Proposed Levy (Payable 2015) FY 2016 over FY 2015 Basic Community
Ed.172,381.67172,968.86587.19 Early Childhood
Family74,593.9569,346.71(5,247.24) Home
Visiting3,408.003,424.0016.00 Adults w/ Disabilities13,394.00 0.00
School Aged Care40,000.00 0.00
Adjustments13,320.41(157.85)(13,478.26) Total Comm.
Services317,098.03298,975.72(18,122.31)
Slide 35
ISD 911 Cambridge-Isanti School District Debt Service FY 2015FY
2016 Change Category Prior Year Levy (Payable 2014) Total Proposed
Levy (Payable 2015) FY 2016 over FY 2015 Initial General Debt
Svc6,244,572.106,514,607.26270,035.16 Reduction for Debt
Excess(186,641.91)(226,569.49)(39,927.58)
Adjustments(26,754.26)39,629.2566,383.51 Total Debt
Service6,031,175.936,327,667.02296,491.09
Slide 36
ISD 911 Cambridge-Isanti School District What are the main
variables that caused the changes between the preliminary levy and
the final levy?
Slide 37
ISD 911 Cambridge-Isanti School District Preliminary LevyFinal
LevyChange General Fund$4,790,944.11$5,138,309.94 $347,365.83
Community Service Fund$298,975.72 $0 Debt Service Fund$6,327,667.02
$0 Total Levy$11,417,586.85$11,764,952.68$347,365.83 Percent Change
over Prior Year21.18%24.87%3.69%
Slide 38
ISD 911 Cambridge-Isanti School District General Fund
SeptemberDecemberChange CategoryPreliminary LevyFinal Levy
Equity471,751.69469,780.73(1,970.96)
LER/LOR1,389,046.651,383,243.26(5,803.39)
Transition25,749.7825,642.20(107.58)
Referendum569,586.57567,206.84(2,379.73) Safe
Schools203,869.80199,440.00(4,429.80) Career
Technical43,936.3945,318.051,381.66 Health &
Safety1,280,553.411,327,927.5547,374.14 Building
Lease282,049.11521,129.11239,080.00
Adjustments(150,752.54)(76,531.05)74,221.49 TOTAL
CHANGE347,365.83
Slide 39
ISD 911 Cambridge-Isanti School District Tax Capacity Rate
Trend
Slide 40
ISD 911 Cambridge-Isanti School District Market Value Rate
Trend
Slide 41
ISD 911 Cambridge-Isanti School District Example Market Value
Taxes Payable 2014 Taxes Payable 2015Change 20142015% Chg.Total
Dollars% $125,000125,0000.00%$658$785$12719.3%
125,000131,2505.00%658824$16625.2%
125,000143,75015.00%658904$24637.4%
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ISD 911 Cambridge-Isanti School District
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Available Property Tax Refunds for Interested Parties
Slide 45
ISD 911 Cambridge-Isanti School District Refunds Two different
refunds available from the State. Both may reduce your net taxes;
however YOU MUST COMPLETE THE FORMS For help with the forms and
instructions contact: Your tax professional Minnesota Department of
Revenue (651) 296-3781 or (800) 652-9094 Automated(651) 296-4444
(800) 657-3676 www.taxes.state.mn.us
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ISD 911 Cambridge-Isanti School District Refunds Homestead
Credit Refund (for Homeowners) 1. Household income up to $105,500
(2013) 2. You owned and lived in your home on January 2, 2015
Maximum Refund is $2,657 for 2013. Form M1PR
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ISD 911 Cambridge-Isanti School District Refunds Special Refund
1. No income limitations 2. Must reside in home on both January 2,
2014 & January 2, 2015 3. Net property tax must increase 12%
AND more than $100 over prior year The maximum special refund a
homeowner can receive is $1,000. Form M1PR Schedule 1
Slide 48
ISD 911 Cambridge-Isanti School District Questions and
Comments