WARREN TOWNSHIP SCHOOL DISTRICT2013 – 2014 PROPOSED BUDGET

Dr. Tami Crader, Superintendent of SchoolsWarren Township Board of Education

Mrs. Patricia Leonhardt, Business Administrator/Board Secretary

SCHOOL DISTRICT BUDGETING

SESSION 4 OF 4REVENUE CALCULATIONS

FEBRUARY 25, 2013

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

The two largest revenue sources are the Local Tax Levy and State Aid.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

STATE AIDThe ‘norm’ is to budget General Fund (Fund 10) state aid LEVEL to the amount received the prior

year.For the 2012/13 School Year, this amount was

$1,187,441.

(This year, the actual amount will be announced on Thursday, Feb. 28.)

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVYThe base tax levy increase for the General Fund

(Fund 10) is 2%.Additionally, additional tax levy growth is allowed for banked cap (tax levies below cap for 2011-12 and 2012-13), and well as certain adjustments. For purposes of this presentation, the example

increase will be 2%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVY – EXAMPLE

2012-13 Tax Levy - $37,026,216Adjusted by 2% - $ 37,766,740

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

The total assessed value for the ratables in the township changes every year.

For 2012/13, this dollar amount was $4,007,517,982

For 2013/14, this dollar amount is $4,112,508,628, a growth of 2.62%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

The value of the average residential property in the township changes every year.

For 2012/13, this value was $625,650

For 2013/14, this value is $643,250, a growth of 2.81%.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVY – What does this mean for the homeowner?

The total township tax levy is divided by the total assessed value of property in the township to arrive at the school tax per $100 of assessed

valuation.

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVY – EXAMPLE

$ 37,766,740 (Gen Fund Tax Levy) * $100$ 4,112,508,628 (Total Assessed Value)

Result .918 per $100 assessed value

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVY – EXAMPLE

$ 603,833 (Debt Service Tax Levy) * $100$ 4,112,508,628 (Total Assessed Value)

Result .015 per $100 assessed value

So total is .933 per $100 (.918 plus .015)

SCHOOL DISTRICT BUDGETING – REVENUE CALCULATIONS

TAX LEVY – EXAMPLE (con’t)Using the 2013 average assessed residential

value of $643,250, the total tax levy would be $6,002.

(.933 * 6,432.50)