florida surplus asset fund trust · 2 •at the meeting, you must present: o current year budget...
TRANSCRIPT
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TRUTH IN TAXATION 101
MASBO FALL CONFERENCE
STEVE PUMPERVice President
PMA FINANCIAL NETWORK, LLC
November 15, 2019
✓ Requirements
✓ Additional Content
✓ Referendum
✓ Sample Presentation
AGENDA
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• Meeting must be after November 24
• Must be before Final Levy Certification
o May be at the same meeting as Final Levy Certification
o Deadline for 2019 is December 30th
• Meeting must be 6:00 p.m. or later
• Time & location of meeting, plus contact information, must be given to County Auditor prior to Tax Notices being sent out
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REQUIREMENTS
MN STATUTE 275.065 , SUB 3
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• At the Meeting, you must present:
o Current Year Budget Information
o Proposed Levy Information
• The Public must be allowed to speak at the meeting
o Roberts Rules of Order may be used for Public Comment
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REQUIREMENTS
MN STATUTE 275.065 , SUB 3
Two slide presentation…
• Budget
• Levy
Let the Public Speak
Don’t let it end there…..
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REQUIREMENTS
PRETTY SIMPLE, RIGHT?
• Has your District received the MDE Finance Award?
o TELL THEM!!!
• Have you received the ASBO Meritorious Budget Award?
o TELL THEM!!!
• Taxes going up?
o Why?
• Taxes going down?
o Celebrate!!!
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ADDITIONAL CONTENT
USE THIS OPPORTUNITY TO TELL YOUR STORY
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• Help create the headlines for your local newspaper
• Solicit the help of your District’s Communication Team
• Use your website
• Use your District’s newsletter
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ADDITIONAL CONTENT
USE THIS OPPORTUNITY TO TELL YOUR STORY
ADDITIONAL CONTENT
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ADDITIONAL CONTENT
✓ Clean Audit
✓ No Audit Findings (how many years?)
✓ Tax Base Growth/Decline
✓ Sales Ratio Growth/Decline
✓ Tax Comparisons to other Districts
✓ District’s Taxes over Time
✓ District’s Fund Balance over Time
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ADDITIONAL CONTENT
OTHER ITEMS OF INTEREST
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• Result and effect of an Operating Referendum
• Result and effect of a Technology Referendum
• Result and effect of a Bond Referendum
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ADDITIONAL CONTENT
SPECIAL ITEMS OF INTEREST
• Keep it VERY high level
• District receives revenue from State, Federal, and Local Sources
• Student Enrollment drives most Funding Formulas
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ADDITIONAL CONTENT
FINANCE 101
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Property Taxes18%
State Aid71%
Federal Aid4%
Other7%
FY20 Budgeted Revenues By Source
SAMPLE PRESENTATION
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• Tax Base often determines how much each entity will fund
• Increase in local taxes does not always equate to increase in funds received by District
• Increase or Decrease in Tax Base affects how much each property owner pays
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ADDITIONAL CONTENT
FINANCE 101
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INCREASING TAX BASE
Taxpayer 250%
Taxpayer 150%
2 Taxpayers
Taxpayer 225%
Taxpayer 425%
Taxpayer 325%
Taxpayer 125%
4 Taxpayers
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INCREASING TAX BASE
Single Homeowner
Other Taxpayers
Current Tax Base
Single Homeowner
Other Taxpayers
Increase in Tax Base
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ENROLLMENT
1,750
1,800
1,850
1,900
1,950
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
AdjustedADM
1,811.26 1,805.70 1,827.91 1,901.00 1,905.00 1,906.00
Enrollment
• Summer of 2019
o Wildwoods Development
o 50 New Single Family Homes
o Fox Hollow Development
o 36 Unit Mix of Townhomes and Senior Living Apartments
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ENROLLMENT
PERSONALIZE IT
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MARKET VALUE
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
2014 2015 2016 2017 2018
Market Value $914,281,100 $1,020,891,835 $1,074,186,900 $1,102,419,800 $1,147,783,300
Market Value
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• Summer of 2019
o Wildwoods Development
o 50 New Single Family Homes
o Fox Hollow Development
o 36 Unit Mix of Townhomes and Senior Living Apartments
o Fleet Farm Opened
o New Caribou in Town! ☺
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ENROLLMENT
PERSONALIZE IT
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SALES RATIO
75%
80%
85%
90%
95%
100%
2014 2015 2016 2017 2018
Sales Ratio 97.4% 92.1% 95.6% 95.7% 89.7%
Sales Ratio
• Some funding is all State Aid
o Education Formula Allowance
o $6,438 per pupil unit in FY20
o $6,567 per pupil unit in FY21
• Some funding is all Local Tax
o Reemployment Insurance
• Some funding is a mix between the two
o Capital Funding
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LOCAL TAX VS. STATE AID
LOCAL TAX VS. STATE AID
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• Legislature’s attempt at being fair with differences in communities’ ability to pay
• Function of total District’s property value per student
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LOCAL TAX VS. STATE AID
LOCAL TAX PERCENTAGE
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LOCAL TAX VS. STATE AID
PAY 19 PAY 20
TOTAL REVENUE $1,439,249 $1,458,357
ADDITIONAL
REVENUE$19,108
LOCAL TAX % 26% 29%
STATE AID $1,065,044 $1,035,433
LOCAL TAX $374,205 $422,924
ADDITIONAL LOCAL
TAX$48,719
CAPITAL FUNDING
REFERENDUM
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REFERENDUM
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• County must mail notices between November 10 and November 24
• Impacts of November Elections are NOT included on Proposed Tax Statement
• If there is an election, a notice will be on the Tax Statement saying Taxes may be higher than amount shown
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ADDITIONAL CONTENT
PROPOSED TAX STATEMENT
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PROPERTY TAX STATEMENT
School District
Election Notice
“Your school district was scheduled to hold a referendum at the
November general election. If the referendum was approved by
the voters, the school district’s voter approved property tax for
2019 may be higher then the proposed amount shown on this
notice.”
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ELECTION NOTICE
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Voters Approved $275 Per Pupil
Increase in Operating Referendum
• Projected Annual Increase of $57 on a $250,000 Home
• Agricultural Land valued at house, garage and 1 acre
• No tax impact for Seasonal Recreational property
• Not reflected on your Proposed Tax Statement
• Tax Calculator available on District’s Website
o www.spruceville.org
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REFERENDUM
NOVEMBER 5, 2019
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REFERENDUM MARKET VALUE
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
2014 2015 2016 2017 2018
ReferendumMarket Value
$784,106,700 $870,778,300 $919,960,400 $941,505,500 $994,271,400
Referendum Market Value
Voters Approved $56,000,000
School Building Bonds (Juniper Middle School)
• Projected Annual Increase of $68 on a $250,000 Home
• Agricultural Property receives School Ag Credit
• Not reflected on your Proposed Tax Statement
• Tax Calculator available on District’s Website
o www.spruceville.org
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REFERENDUM
NOVEMBER 5, 2019
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State Aid Pays for a Percentage of
School Taxes on Ag Land
• 40% for Taxes Payable in 2019
• 50% for Taxes Payable in 2020
• 55% for Taxes Payable in 2021
• 60% for Taxes Payable in 2022
• 70% for Taxes Payable in 2023 and thereafter
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REFERENDUM
SCHOOL BOND AGRICULTURAL CREDIT
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$0
$100
$200
$300
$400
$500
$600
$700
($000)
20 Year Debt Service With New Bonds
Current Debt With New Bonds
ADDITIONAL CONTENT
Truth in Taxation Presentation
December 9, 2019 | 6:30 PM
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SAMPLE PRESENTATION
SPRUCEVILLE ISD 999
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• Mary Elm – Director of Finance & Operations
• John Oak – Accountant
o Received MDE School Finance Award for 8 Straight Years
o Awarded the ASBO Meritorious Budget Award in 2018
o Clean Audit Opinion by Independent Auditors for FY’s 2007-2019
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SAMPLE PRESENTATION
DISTRICT FINANCE STAFF
• Presentation of the current school year budget
• Presentation of the proposed tax levy
• Public comment must be allowed
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SAMPLE PRESENTATION
SCHOOL DISTRICT REQUIREMENTS
June-July: District provides data to MDE
August: Set date and location of levy hearing
September: School Board certifies proposed levy
November: County mails levy notices
December: Public Hearing & Certify final tax levy
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SAMPLE PRESENTATION
LEVY CALENDAR
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Our school district is required to use a “Fund Accounting” system, thus we account for our revenues and expenditures using five separate funds:
• General Fund *
• Food Service Fund
• Community Service Fund *
• Building Construction Fund
• Debt Service Fund *
* These Funds have a Tax Levy Component
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SAMPLE PRESENTATION
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Fund Revenue Expense
General Fund 9,710,887$ 9,509,320$
Food Service 509,376$ 495,660$
Community Service 445,355$ 444,270$
Construction 1,500$ 1,662,143$
Debt Service 814,643$ 832,770$
Total 11,481,761$ 12,944,163$
2020 Budget Summary By Fund
SAMPLE PRESENTATION
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General Fund85%
Food Service Fund4%
Community Service Fund
4%
Construction Fund0%
Debt Service Fund7%
FY20 Budgeted Revenues By Fund
SAMPLE PRESENTATION
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Property Taxes18%
State Aid71%
Federal Aid4%
Other7%
FY20 Budgeted Revenues By Source
SAMPLE PRESENTATION
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General Fund74%
Food Service Fund4%
Community Service Fund
3%
Construction Fund13%
Debt Service Fund6%
FY20 Budgeted Expenditures By Fund
SAMPLE PRESENTATION
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ADMINISTRATION5%
DISTRICT SUPPORT SERVICES
4%
ELEM. & SEC. REGULAR
INSTRUCTION34%
VOCATIONAL EDUC.
INSTRUCTION1%
SPECIAL EDUC. INSTRUCTION
12%
COMMUNITY ED. SERVICES
3%
INST. SUPPORT SERVICES
2%
PUPIL SUPPORT SERVICES
11%
SITES & BUILDINGS21%
FISCAL & OTHER FIXED COST PROG.
7%
FY 20 Budgeted Expenditures by Program
SAMPLE PRESENTATION
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Actual Levy Proposed Levy Percent
Levy Category Payable in 2019 Payable in 2020 Change Change
Local Optional Revenue $347,017 $352,063 $5,046 1%
Voter Approved Referendum $166,653 $173,108 $6,454 4%
Board Approved Referendum $0 $0 $0 0%
Capital Project Referendum $239,943 $253,639 $13,696 6%
Equity $116,292 $118,099 $1,807 2%
Student Achievement $26,237 $25,859 -$378 -1%
Operating Capital $124,095 $132,862 $8,768 7%
Achievement and Integration $9,748 $9,245 -$502 -5%
Reemployment Ins. $10,000 $10,000 $0 0%
Health & Safety $56,350 $0 -$56,350 -100%
Deferred Maintenance $65,920 $0 -$65,920 -100%
Long-Term Facilities Maintenance (LTFM) $0 $152,652 $152,652 100%
Safe Schools $37,080 $37,094 $14 0%
Career/Tech. $35,617 $38,770 $3,152 9%
Building Lease $9,800 $9,770 -$30 0%
Adjustments for Facility Bonds -$57,429 $0 $57,429 -100%
Adjustments for Prior Years -$14,004 $18,160 $32,164 230%
Total - General Fund $1,173,320 $1,331,322 $158,003 13.47%
General Fund
SAMPLE PRESENTATION
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Actual Levy Proposed Levy Percent
Levy Category Payable in 2019 Payable in 2020 Change Change
Basic Community Education $50,976 $50,976 $0 0%
Early Childhood Family Education $29,963 $19,301 -$10,662 -36%
Disabled School Age Care $0 $10,000 $10,000 100%
Home Visiting $600 $560 -$40 -7%
Adjustments for Prior Years -$400 -$92 $308 -77%
Total - Community Service Fund $81,139 $80,745 -$394 -0.49%
Community Service Fund
SAMPLE PRESENTATION
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Actual Levy Proposed Levy Percent
Levy Category Payable in 2019 Payable in 2020 Change Change
Voter Approved Debt Service $795,587 $796,947 $1,360 0%
Facility Bonds $60,060 $0 -$60,060 -100%
Debt Excess Adjustment -$35,517 -$49,639 -$14,122 -40%
Total - Debt Service Fund $820,130 $747,308 -$72,822 -8.88%
Debt Service Fund
SAMPLE PRESENTATION
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Actual Levy Proposed Levy Percent
Payable in 2019 Payable in 2020 Change Change
Total Levy - All Funds: $2,074,589 $2,159,376 $84,787 4.09%
All Funds
SAMPLE PRESENTATION
Additional Revenue due to Tax Base Growth
• Capital Project Referendum $ 13,696
Shift from State to Local due to Tax Base Growth
• Operating Capital $ 8,768
o $1,000 Additional dollars to District
o 53% Local Burden in Pay 2016
o 57% Local Burden in Pay 2017
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SAMPLE PRESENTATION
MAJOR CHANGES
• Prior Year Adjustments $ 18,350
• Total of Major Changes $ 71,196
• Total Increase $ 84,787
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SAMPLE PRESENTATION
MAJOR CHANGES
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However:
• Referendum Market Value Increases by 2.41%
• Net Tax Capacity Increases by 5.28%
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SAMPLE PRESENTATION
TOTAL LEVY INCREASES BY 4.09%
If property valuation is the same from 2019 to 2020, the estimated impact is a decrease in school district taxes.
Home Value Tax Decrease %
$100,000 (2.63) (0.92%)
$150,000 (3.77) (0.81%)
$200,000 (4.91) (0.76%)
$250,000 (6.04) (0.74%)
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SAMPLE PRESENTATION
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$393
$527
$556
$575
$588
$623
$627
$654
$734
$957
$0 $200 $400 $600 $800 $1,000 $1,200
ELMVILLE ISD 988
OAKVILLE ISD 987
SPRUCEVILLE ISD 999
ASHVILLE ISD 985
MAPLEVILLE ISD 984
BIG TREE AVERAGE
APPLEVILLE ISD 983
BIRCHVILLE ISD 986
FIRVILLE ISD 982
COTTONVILLE ISD 981
Total School Property Taxes on a Home with a Market
Value of $150,000 for Taxes Payable in 2019Big Tree Conference Schools
SAMPLE PRESENTATION
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Other factors that may affect your individual property tax statement include:
• Increase or decrease in assessed valuation
• New Elections
• Other taxing entities
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SAMPLE PRESENTATION
Minnesota provides the potential for tax relief to Home Owners and Renters
Download forms and instructions at www.taxes.state.mn.us
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SAMPLE PRESENTATION
RECOMMENDED
LEVY CERTIFICATION AMOUNT
$12,456,791.87
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SAMPLE PRESENTATION
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PUBLIC COMMENT
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SAMPLE PRESENTATION
STEVE PUMPER
612-509-2565
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CONTACT INFORMATION
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