Presentation on theme: "1 Operating Referendum WHAT YOU NEED TO KNOW. 2 What is an operating referendum? An operating referendum provides additional revenue for: Instructional."— Presentation transcript:
1 Operating Referendum WHAT YOU NEED TO KNOW
2 What is an operating referendum? An operating referendum provides additional revenue for: Instructional Supplies (textbooks, workbooks, paper, etc.) Salaries and Services directly related to the educational process (teachers, secretaries, custodians, bus drivers, administrators, etc) Utilities (gas, heat, electricity) Basic Building Maintenance Transportation (fuel, bus maintenance and repair)
3 How is an operating referendum different than a building bond? A building bond provides one time revenue that can only be used for major building renovation or new construction.
4 How is taxation for an operating referendum different than a building bond? Unlike building bonds: Agricultural properties will pay taxes based solely on the value of their house, garage, and one acre of surrounding ag land. Seasonal recreational residential properties (cabins) do not pay taxes on operating referendum. Taxable property is dictated by Minnesota tax codes.
5 Why do we need an operating referendum? The current operating referendum will expire in 2009.
6 Why do we need an operating referendum? The State of Minnesotas basic education aid has been frozen. Basic State Percentage School Year Funding Per-Pupil Increase 2002-03 $4601 2003-04 $4601 0.00% 2004-05 $4601 0.00% 2005-06 $4783 3.96% 2006-07 $4974 3.99% 2007-08 $5073 1.99% 2008-09* $5174 1.99% 2009-10 $5124 -0.97% 2010-11 $5124 0.00% Yearly Average Increase 1.37% *Includes one-time $50 per-pupil funding
7 Why do we need an operating referendum? The districts enrollment has been declining, which results in a decrease in state funding. First Day of School K-12 Enrollment 2002-03 996 2003-041005 2004-05 987 2005-061002 2006-07 957 2007-08 957 2008-09 887 2009-10 866 2010-11* 834 2011-12* 814 2012-13* 790 *Projected based on pre-school population and historical trends
8 Why do we need an operating referendum? Projected 2010-11 expenditures and revenue leave a shortfall. Revenue$6,930,574 Expenditures ($8,332,833) Shortfall ($1,402,259)
9 What is the board asking voters to consider? The school board is asking voters to consider an operating referendum of $1200 per pupil unit for six years, beginning in the 2010-11 school year. If approved, the referendum would provide an estimated $1,393,853 in funding per year to help meet the $1,402,259 projected shortfall.
10 How do we utilize our financial resources? 2008-09 Expenses
11 Have we been prudent with our resources? The district has focused on fiscally prudent budgeting and planning to make the 2002 operating levy last the full seven years of voter approved levy authority. The Minnesota Department of Education has recognized the District for five consecutive years with the School Finance Award. It is given to districts that demonstrate fiscal health and compliance with state statutes.
12 What reductions have been made since 2002? Even with the passage of the 2002 operating referendum, the district still needed to make the following reductions in order to maintain a balanced budget. 8.2 Teachers 4.0 Paraprofessionals 1.0 District Office 1.0 Curriculum Coordinator 0.5 Administrator 0.5 Custodian 0.4 Counselor Closed and repurposed the Elysian building
13 What will the operating referendum be used for? The operating referendum will be used to maintain current programming.
How do our school taxes compare to neighboring districts? Comparison of school taxes on a home with taxable market value of $115,000 14
How do our school taxes compare to neighboring districts? Comparison of school taxes on a home with taxable market value of $220,000 15
16 What will the operating referendum cost property owners? Types of Properties: Residential, Farmstead, Apartments, and Commercial-Industrial Property Taxable 2009 2010 Estimated Market Value Expiring Levy Proposed Levy Net Increase $50,000 $46$118 $72 $75,000 $69$178 $109 $100,000 $92$237 $145 $125,000 $115$296 $181 $150,000 $138$355 $217 $160,000 $147$379 $232 $175,000 $161$414 $253 $200,000 $184$474 $290 $250,000 $230$592 $362 $300,000 $276$710 $434 $350,000 $322$829 $507 $400,000 $368$947 $579
What would our taxes have been this year with the proposed levy in place? Comparison of school taxes on a home with taxable market value of $115,000 17
What would our taxes have been this year with the proposed levy in place? Comparison of school taxes on a home with taxable market value of $220,000 18
19 What would happen if the district dissolved? If we close our schools, the borders of neighboring districts would be redrawn to include property in our district. Tax payers would pay school taxes to their new district.
What will happen if the operating referendum does not pass? 20 If the operating referendum does not pass, the district faces a projected $1.4 million shortfall. During the 2010-11 school year, the school board would met this shortfall by: Spending the entire projected general fund balance of $637,000 Making budget reductions of $765,000 During the 2010 calendar year, the school board would again ask voters to consider an operating referendum. If that referendum also fails, the school board would need to make further reductions of at least $637,000 beginning in the 2011-2012 school year.
What will happen if the operating referendum does not pass? 21
What will happen if the operating referendum does not pass? 22
When & Where Do I Vote? Polls will be open from 7:00 a.m. to 8:00 p.m. on Tuesday November 3, 2009. Elysian Building, Gymnasium Elysian Township & City of Elysian, Precincts 1 & 2 Jamestown Township, Blue Earth County Janesville Township, Waseca County Morristown Building, Gymnasium Blooming Grove Township, Waseca County Morristown Township & City of Morristown Shieldsville Township, Rice County City of Warsaw Waterville Building, Elementary Gymnasium Cordova Township, Le Sueur County Iosco Township, Waseca County Kilkenny Township & City of Kilkenny Ward 1 Waterville Township & City of Waterville 23
Want to know more? County Auditors WEM School Board Members Blue Earth507-304-4182 Andrea Jewison507-362-8516 Le Sueur507-357-2251 Tom Little507-362-8772 Rice507-332-6104 Gary Michael507-362-8466 Waseca507-835-0610 Pat Nusbaum507-267-4327 Roy Schmidtke507-685-4276 EHLERS and Associates Toya Schmidtke507-362-8394 Educational Team 800-552-1171 Jay Schneider507-362-4971 Check out our website at: Administration507-362-4432 www.wem.k12.mn.us Joel Whitehurst, Superintendent Randy Mediger, Principal (K-4) Bernardine Sauter, Principal (5-8) John Kaplan, Principal (9-12) 24 Click on the WEM Property Tax Information Website link and use the interactive calculator to see the tax impact of the operating referendum on your property.
November 3, 2009 Operating Levy Referendum Be Informed and VOTE 25