HUDSON CITY SCHOOL DISTRICT

Transcription

1 HUDSON CITY SCHOOL DISTRICT Budget Workshop Considerations, Trends & Tax Levy Presented By: Sharifa Carbon School Business Administrator March 11, 2019

2 Superintendent Dr. Maria J. Suttmeier Board of Education Carrie Otty - President Willette Jones - Vice President Maria McLaughlin Sage Carter Linda Hopkins Lucinda Segar Charles Parmentier

3 WE ARE HUDSON!

4 10.00% 9.80% Hudson City School District Tax Levy Trend Proposed 9.00% 8.00% 7.00% 6.00% 5.00% Allowable Levy: 5.3% 4.79% Allowable Levy: 3.85% 4.00% 3.00% 2.00% 2.78% 2.17% 1.75% Allowable Levy: 2.81% 2.15% 2.19% 3.25% 2.50% 1.00% 0.00% Tax Inc 9.80% 2.78% 4.79% 2.17% 1.75% 2.15% 2.19% 3.25% 2.50%

5 Key Points to Remember Hudson City School District taxpayers will qualify to receive a tax rebate check in , as the District will stay within the tax cap of 2.5% In response to rising property taxes, the property tax cap was designed to limit the amount of taxes that school districts can levy The District has stayed within the limits of the tax cap every year since its inception In 3 of the 8 years of the property tax cap, the Hudson City School District has levied less than the maximum allowable levy

6 Tax Cap Calculation: 5 Key Factors Current Year Tax Levy Tax Base Growth Factor (NYS Tax & Finance) CPI (Consumer Price Index) Inflation Rate PILOT Payments (Payments in Lieu of Taxes) Capital & Retirement Exclusions

7 Tax Cap Calculation: 5 Key Factors 1. Current Year Tax Levy: This is our starting point The District has asked the taxpayers for less than the maximum allowable levy for 2 consecutive budgets This places our starting revenue $270K lower for Tax Base Growth Factor (NYS Tax & Finance): This is the first multiplier applied to our current tax revenue The factor is specific to each school district and municipality The growth factor reflects the growth in the tax base of the District Changes in assessments DO NOT impact the tax base growth factor 3. CPI (Consumer Price Index) Inflation Rate The second and final multiplier applied to adjusted prior year tax levy 2% is the maximum inflation factor allowed, regardless of actual inflation For the past 2 years, inflation has been higher than the 2% cap 4. PILOT Payments: Current Year vs. Next Year Anticipated 5. Exemptions - Capital & Retirement: Current Year vs. Next Year

8 Hudson City School District Inflation (CPI) Trend Year 1 of Tax Cap (2013) Proposed Actual CPI: 2.13% Actual CPI: 2.44% 1.50% 2.00% 1.46% 1.62% 1.26% 2.00% 2.00% CPI 1.50% 2.00% 1.46% 1.62% 0.12% 1.26% 2.00% 2.00% 0.12%

9 Hudson City School District Tax Base Growth Factor Trend Year 1 of Tax Cap (2013) Proposed *The tax base growth factor is determined by NYS Tax & Finance *The growth factor is based on prior year tax roll information Growth Factor 0.13% 0.97% 0% 0.32% 1.40% 1.44% 1.83% % % 0.97% 0% 0.32% 1.40% 1.44% 1.83% 0.50%

10 Tax Base Growth Factor: % of District Full Value By Town/City 9.51% 3.40% 5.71% 32.50% Hudson Claverack Ghent Greenport Livingston Stockport 31.23% Taghkanic 1.95% 15.71%

11 Hudson City School District Inflation (CPI) Trend vs. Allowable Levy Year 1 of Tax Cap (2013) Proposed 2.78% Allowable Levy: 5.3% 0.13% 4.79% 0.97% 2.17% 0% 1.75% 2.15% 2.19% Tax Inc 2.78% 4.79% 2.17% 1.75% 2.15% 2.19% 3.25% 2.50% CPI 1.50% 2.00% 1.46% 1.62% 0.12% 1.26% 2.00% 2.00% Growth Factor 0.13% 0.97% 0% 0.32% 1.40% 1.44% 1.83% 0.50% 0.32% Allowable Levy: 2.81% 1.40% 1.44% Allowable Levy: 3.85% 3.25% 1.83% 2.50% 0.50%

12 How would a tax levy increase affect an individual tax bill with an assessed value of $100,000? Assessed Tax Paid 2.5% Levy Value Increase Difference Hudson $100,000 $2, $2, $50.00 Claverack $100,000 $1, $1, $47.00 Ghent $100,000 $1, $1, $42.00 Greenport $100,000 $1, $1, $39.00 Livingston $100,000 $1, $1, $46.00 Stockport $100,000 $1, $1, $47.00 Taghkanic $100,000 $1, $1, $38.00 Assumptions: No STAR exemptions No change in assessed values No change in full values No change in equalization rates

13 How would a tax levy increase affect an individual tax bill with an assessed value of $200,000? Assessed Tax Paid 2.5% Levy Value Increase Difference Hudson $200,000 $4, $4, $ Claverack $200,000 $3, $3, $94.00 Ghent $200,000 $3, $3, $84.00 Greenport $200,000 $3, $3, $78.00 Livingston $200,000 $3, $3, $91.99 Stockport $200,000 $3, $3, $94.00 Taghkanic $200,000 $3, $3, $76.00 Assumptions: No STAR exemptions No change in assessed values No change in full values No change in equalization rates

14 How would a tax levy increase affect an individual tax bill with an assessed value of $300,000? Tax Paid 2.5% Levy Increase Difference Hudson $300,000 $6, $6, $ Claverack $300,000 $5, $5, $ Ghent $300,000 $5, $5, $ Greenport $300,000 $4, $4, $ Livingston $300,000 $5, $5, $ Stockport $300,000 $5, $5, $ Taghkanic $300,000 $4, $4, $ Assumptions: No STAR exemptions No change in assessed values No change in full values No change in equalization rates

15 PROPERTY (RE)ASSESSMENTS: What Taxpayers Need To Know School Districts have no role in this process The Property Tax Cap Calculation limits the amount of tax revenue districts can levy The Tax Cap Calculation is completely formula-driven Property assessments and changes are not a factor in the tax cap formula Regardless of the size and change in the budget, school districts can only ask taxpayers to contribute a limited amount of money.

16 QUESTIONS?