Welcome

Overview Overview of the referendum questions that the school board has authorized Explanation of need for passing these questions Questions

1st Voter approved referendum was 11-6-01 for $560 per pupil History 1st Voter approved referendum was 11-6-01 for $560 per pupil

History Renewed on 11-3-09 at 567.49 with a second question for $70.00 per pupil unit which brought the total to $637.49 Voter approved levies

History Teachers, Textbooks, and Technology was a phrase coined in the original referendum. ACT – Activities, Curriculum/Class size, & Technology was coined for the renewal and activity levy Keep class sizes low Annually purchase books for a department Update technology Activities

History Total voter approved levy per pupil unit in Fiscal year 16 was $772 State average was $1161 Legislation changed the calculation of levy in 2014. Changed from resident students to students attending ISD 361. Hold harmless changed the amount to roughly $770 / pupil unit.

History Legislation currently allows districts to levy $424 without voter approval. That is why we are revoking $347.55

Future Question #1 Voter approved levy for $834 (annually subject to inflation, District $760 $ Rec. Dept. $74) Previous $347.55 + new $486.45 In addition the $424 Total: $1,258 (District $1184 & Rec. Dept. $74) compared to $772 last year (increase of $486 per student

Future Question 1 = $1258 ISD 361 = $1,184/pupil attending Recreation Department = $74/pupil attending $559,904 in new revenue $453, 807 Local levy $ 106,097 State Aid

Why do we need this? Over the past 15 years, the general education revenue increases have not kept up with inflation and rising educational costs If it had, it would be nearly $600 more per pupil unit. Original levy brought in approximately $967, 859 Today it brings in approximately $803,865

Why do we need this? The Activity Levy (question 2) originally brought in $110,923 Today it brings in $99,157

What will the funds be used for? Approximately $140,000 in budget deficit for 2016 -17. -Reductions have occurred over the past 2 years -Increased some class sizes -Absorbed some support services Technology upgrades – approximately $170,000 per year (3 years) - Computer lease is up and devices are 6 years old - Ipads are in need of replacement - phone system is nearing 20 years old and getting hard to get parts approximately $125,000 (estimate it wont be supported in next 5 years) - Tech staff support

What will the funds be used for? Transportation needs - $106,000 per year Curriculum – reduced by about $50,000 what we have been allocating compared to 3 years ago Help fund ALC, Preschool, extra programs that we may wish to continue Approximately $15,000 new revenue for Recreation Department

Bond $1.75 million Question # 2 10 year bond Solely for Bronco Arena Receive approximately $1,692,904 after fees

Bond $1.75 million Replace arena floor and piping - $1 million - 1.3 million Bathroom remodels Air exchange Locker room upgrades * List of needs is larger than bond amount

Tax Impact Question 1 Question 2 Residential Homestead   Question 1 Question 2 Residential Homestead Estimated Market Value Proposed Authority Net change Annual Bond authority Total Net Change $50,000 $61 $43 $7 $50 $100,000 $121 $84 $17 $101 $150,000 $182 $127 $30 $157 $200,000 $242 $169 $212

Tax Impact Question 1 Question 2 Commercial / Industrial   Question 1 Question 2 Commercial / Industrial Estimated Market Value Proposed Authority Net change Annual Bond authority Total Net Change $50,000 $61 $43 $18 $100,000 $121 $84 $36 $120 $250,000 $303 $211 $101 $312 $500,000 $605 $421 $219 $640

Tax Impact Question 1 Question 2 Seasonal Recreational Residential   Question 1 Question 2 Seasonal Recreational Residential Estimated Market Value Proposed Authority Net change Annual Bond authority Total Net Change $50,000 $0 $12 $100,000 $24 $150,000 $36 $300,000 $71

Misc: Do all businesses pay on the referendum?  Are some businesses large enough that they get out of paying?

Misc: All businesses pay on the referendum regardless of market value.  We think it is important to note though that the 2017 Legislature passed a modification to the statewide business tax that excluded the first $100,000 in value for Commercial/Industrial Property.  This exclusion applies only to the statewide business tax and is unrelated to school taxes, but it does mean that all business will see a reduction in overall taxes.  The reduction is equal to approximately $690 on business property valued at $100,000 and above (below valuations of $100,000 the tax reduction is proportionately less).

Misc: Elementary Class sizes K – 20, 22, 12, 18 = 18 1 - 21, 20, 20, 20 = 20.25 2 – 23, 24, 24 = 23.67 3 - 20, 21, 21, 21 = 20.75 4 - 26, 27, 26 = 26.33 5 - 22, 20, 23 = 21.67

Misc: Absentee voting 1) Visit FHS between 8 – 4, M- F (business office) 2) Call ISD 361 – 283-2571 ext. 194, mail you a voter identification form, once returned mail you the actual ballot.

Misc: If the referendum passes, what percentage is actually paid by businesses and what percentage is paid by homeowners.? The same question with the bond, what falls on businesses and what is noncommercial. Response: Below is the Payable 2016 distribution of property types for the various tax bases. This is the most recent year that we have this distribution, but not much should have changed. You can see for the Referendum Market Value (RMV), the business will pay approximately 20% of the operating referendum and approximately 26% of the debt service on the bond issue (which is spread on Net Tax Capacity (NTC))

Misc:

Misc: Will the new transmission line going through Koochiching County generate additional revenue for the school district? Response: The transmission line will generate new money for the county on an annual basis and the schools will receive new money from the county, but the result is less money from the state which makes this revenue neutral for school districts. It just changes who we are getting money from.

Questions?