Truth in Taxation Report December 18, 2014 ISD #2184, Luverne, MN 56156 Truth in Taxation Report December 18, 2014

Truth in Taxation Requires a school district to announce the time and place of a public meeting to discuss the proposed property tax levy and current budget.

Current Budget The school district has eight different revenue and expenditure funds. Tax levy is one of the primary sources of revenue for five of them. GENERAL FUND LEVY - includes Transportation and Capital Outlay Based on student enrollment. The local referendum levy is also part of this fund. Transportation - to and from school Transportation - Special Education Provides funding for facilities maintenance and instructional equipment. Provides funds for Health and Safety code compliance, asbestos removal, underground storage tank replacement, and safety requirements.

COMMUNITY EDUCATION FUND LEVY a. Based on the adult population in the District. b. Early Childhood levy is based on the number of children under 5 years of age. DEBT SERVICE FUND LEVY Based on annual debt retirement schedules. Annual levy is what is needed to pay off bonds. Current debt is a result of the voter approved Bond Issue for the Elementary School Building. The School Board refunded these bonds in the fall of 2014, saving approximately $140,000 in interest. The last payment will be February 2018.

Operating Referendum Levies The Luverne School District has two operating referendums $401.27/RMCPU - Our local residents voted in the fall of (2011) to renew this referendum. $700/RMCPU was approved in 2006 and will expire in 2016. (Will require an election in November, 2015, to renew) Referendum Levy Authority $467,029.85 and Referendum Aid $573,165.09 = $1,040,194.94

REVENUE SOURCES 13% LOCAL 76% STATE 4% FEDERAL 7% SALES & OTHER

REVENUE BUDGET GENERAL $10,974,802 $11,011,479 FUND ACTUAL 2013-14 PRELIM 2014-15 GENERAL $10,974,802 $11,011,479 FOOD SERVICE 595,163 625,764 TRANSPORTATION 813,189 792,325 COMMUNITY ED 496,577 458,109 CAPITAL OUTLAY 370,209 357,285 DEBT SERVICE 1,011,433 1,012,749 TRUST 59,158 68,125 CHILD GUIDE 47,907 48,000 TOTAL $14,368,438 $14,373,836

EXPENDITURE BUDGET GENERAL $10,559,162 $ 11,175,497 FUND ACTUAL 2013-14 PRELIM 2014-15 GENERAL $10,559,162 $ 11,175,497 FOOD SERVICE 609,866 621,846 TRANSPORTATION 638,729 730,407 COMMUNITY ED 442,156 472,532 CAPITAL OUTLAY 489,091 547,919 DEBT SERVICE 1,016,250 1,016,250 TRUST 111,932 26,885 CHILD GUIDE 45,401 48,504 TOTAL $13,912,587 $14,639,840

Summary of Economics 1. After several years of declining enrollment, Luverne’s enrollment has remained constant – 2010 - 1,186 2011 –1,197 2012 –1,199 2013 - 1,180 2014 –1,198

3. State Formula Allowance 2. The state’s normal hold back of 10% has been reinstated in 2014. The June 30, 2014, fund balance included $453,209 State Aid Receivables and $71,964 Tax Shift, totaling an amount due from the state of $525,173. However, on June 30, 2012, the total aid and tax shift held by the state was $3,300,412. 3. State Formula Allowance 2010-11 $5,124 2011-12 $5,174 2012-13 $5,224 2013-14 $5,302 2014-15 $5,831 State Adj &Pupil Weighting Chg

State Weightings for Pupil Units FY 2008-2014 FY 2015 & Later Pre-Kgn 1.250 1.000 Hcp Kgn 1.000 1.000 Reg Kgn 0.612 1.000 Grades 1-3 1.115 1.000 Grades 4-6 1.060 1.000 Grades 7-12 1.300 1.200

2014 Pay 2015 Levy Fund Pay 14 Levy Pay 15 Levy Inc/Dec. % General $1,392,494.31 $1,323,504.24 -$68,990.07 -4.95 Com Serv $ 97,503.75 $ 102,210.16 $ 4,706.41 4.83 Debt Serv $1,012,563.16 $1,030,511.94 $17,948.78 1.77 Total $2,502,561.22 $2,456,226.34 -$46,334.88 -1.85