Rockford Area Schools

Transcription

1 Rockford Area Schools Referendum Presentation Given prior to the November 6 th, 2018 Election Neutral, District-Prepared Material. Prepared and paid for by Independent School District No. 883 Rockford Area Schools 6051 Ash Street, Rockford, MN

2 UNDERSTANDING TERMS Referendum vs. Bond vs. Levy vs. Aid? Referendum means a VOTE of the public Levy is a locally collected revenue that must be spent a specific way (i.e. Levy =Learning People and Program related expenses) Bond is revenue collected toward a specific area (i.e. building, grounds or infrastructure related expense Bond = Building - it cannot be used toward salary or benefits) Aid is revenue that comes to the school district from either state or federal sources NOTE : None of the scenarios can make it more than 5 years without careful budget management. The Rockford Area Schools MUST have enrollment growth or stability to keep us from future cuts (this is the same for every district unless they have significant local support (levies) or enrollment growth (thus more state aid)

3 Local Rockford Area Schools taxes in support of K-12 education During the decade of the 90 s ( ) the average voter approved levy in the Rockford Area Schools was only $3.19 PPU Over the next decade ( ) the average voter approved levy (General Fund use) in the Rockford Area Schools was $51.57 PPU And for the past seven years the average voter approved levy has reached $ PPU in the Rockford Area Schools PPU = Per Pupil Unit

4 A few state-wide school funding facts In total, over the past 25 years, voters in Minnesota have approved 69% of school referendum elections (levy & bond). In 1993, average referendum authority was $332 per pupil. For Fiscal Year , average referendum plus local optional revenue authority is $1,202 per pupil. That $1,202 per pupil is equal to 19% of general education formula allowance district need to run their schools.

5 BOND Election History Compared with our Nine Neighboring Districts Rockford $27,000,000 Buffalo $33,050,000 Delano $65,000,000 Elk River $98,030,000 Wayzata $109,645,000 Westonka $52,875,000 (Plus Alternative (2 elections in 2011 Facilities Bond) & 2016) Saint Michael - $36,000,000 Orono $39,400,000 Albertville Osseo None (But lots of Alternative Facilities Bonds, which don t require voter approval)

6 Bond refunds save our local taxpayers over 3 million dollars Since July 1, 2010, we have refunded 3 different bonds: Once in Nov we refunded the 2001 bonds, once in May 2012 we refunded the 2002 bonds, and once in Nov we refunded the 2006A bonds. This is a total debt service savings of $3,131,254 that was refunded to local our Rockford Area Schools taxpayers! As far as the district s debt burden, here is what Standard & Poor's stated in the rating report on our 2015 bonds: As a percentage of market value, we consider overall net debt moderate, at 5.8%. $6,353. Amortization is fairly rapid, with 68% of the district's direct debt scheduled to be retired within 10 years. We currently have a AA+ credit rating

7 Budget Cuts already made in = $500,000 ES/HS Elem Ed/Sped/HS Certified Staff 3.25 FTE $ 213, Athletics/District #284 Support Position 2 FTE $ 70, Athletics Trainer grant $ 4, Athletics Fee Increases $ 16, District Non-Aligned staff: 2 FTE $ 111, District Transportation Reduction in trips $ 5, District Supplies Reduction in supplies $ 12, ES/MS/HS Field Trips Reduction in field trips $ 7, District Food Reduction in food $ 3, District Copies Reduction in copies $ 8, District Deferred Maintenance Reserve freeze on reserve $ 50, $ 500,000.00

8 Sale Of District Assets In 2018 the Board of Education voted to sell assets to head off major reductions in district staffing 60 acres of land in Corcoran was sold The sale generated... $1,430,000

9 The last successful LEVY vote in the Rockford Area Schools was in.

10 LOCAL REVENUES COLLECTED We currently do not have a voter approved levy (we only have a Board Approved Referendum ($300) and Local Optional Revenue of ($424) OR $724 total referendum authority for the Rockford Area Schools) The State Average is $1,357

11 The Basic Funding Formula Has NOT Kept up with Inflation!

12 revenue Rankings (Per Pupil Unit) Rockford Area Schools is ranked 294 th lowest out of 330 school districts in Minnesota with total $9,576 per pupil unit

13 State of Minnesota Revenue Rankings (PPU Per Pupil Unit) $7,334 PPU in General Education (Ranking 244 th of 330 other districts) $869 PPU in Special Education (Ranking 245 th of 330 other districts) $649 PPU in Facilities (Ranking 279 th of 330 other districts)

14 Special Education Costs are Rising FAST! In the Rockford Area Schools the cost of Special Education services reached $2,676,056 in fiscal year The unfunded portion of this mandate reached $649 PPU or $1,184,949 annually

15 Annual Taxpayer Cost for the Local School District's Operating Levies (Property taxes paid in 2018 for the school year.)

16 Rockford School District No 883 Voter/Board Approved Referendum Authority Per Pupil Unit FY (Includes Local Optional Revenue) Group Average $ 1, Rockford $ Variance $ (941.49) Note: Data Source is the Minnesota Department of Education $3,000 $2,500 $2,121 $2,391 $2,439 $424 $424 $2,000 $1,500 $1,000 $500 $724 $724 $724 $424 $424 $424 $1,079 $424 $655 $1,191 $424 $767 $1,801 $424 $1,377 $424 $1,697 $1,967 $2,015 $1,665 $424 $1,241 $1,371 $420 $951 $0 $300 $300 $300 Voter and/or Board Approved Referendum Source: MDE FY 19 WhatIf (all revenues converted to per pupil unit) Local Optional Revenue

17 Rockford School District No 883 Voter/Board Approved Referendum Authority Per Pupil Unit FY (Includes Local Optional Revenue) $3,000 Group Average $ 1, Rockford $ Variance $ (941.49) Note: Data Source is the Minnesota Department of Education STATE AVERAGE $2,500 ROCKFORD $2,121 $2,391 $2,439 $424 $424 $1371 $2,000 $1,500 $1,000 $500 $724 $724 $724 $724 $424 $424 $424 $1,079 $424 $655 $1,191 $424 $767 $1,801 $424 $1,377 $424 $1,697 $1,967 $2,015 $1,665 $424 $1,241 $1,371 $420 $951 $0 $300 $300 $300 Voter and/or Board Approved Referendum Source: MDE FY 19 WhatIf (all revenues converted to per pupil unit) Local Optional Revenue

18 SOME ASSUMPTIONS Assume (Stable Enrollment) Land Sale of 1.43 million Assume (+1% Revenue Annually from the State of Minnesota) Assume (+3% Expenses Increase Annually): 10 year past history of cost increases in energy, fuel, transportation, special education, supplies, legal costs, technology, salaries, insurance and benefits

19 Fund Balance Goal OR Statutory Operating Debt?

20 School District Question 1 Approval of School District Referendum Revenue Authorization The board of Independent School District No. 883 (Rockford Area Schools) has proposed to increase its general education revenue by $ per pupil. The proposed referendum revenue authorization would be applicable for 7 years unless otherwise revoked or reduced as provided by law. Yes No Shall the increase in the revenue proposed by the board of Independent School District No. 883 be approved? BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE.

21 Maintain and attract quality staff! New Teaching Staff for in the Rockford Area Schools If we hope to maintain a quality school district we must hire and retain staff and strengthen programming and carefully consider the competition from neighboring school districts.

22 Rockford Area Schools Technology Expenses $ 445,624 Comes out of the General Fund annually to support technology initiatives in the school district Staff Expenses Hardware Software Repairs Supplies

23 School District Question 2 Approval of Capital Project Levy Authorization to Fund Technology The board of Independent School District No. 883 (Rockford Area Schools) has proposed a capital project levy authorization in the amount of % times the net tax capacity of the school district. The proposed capital project levy authorization will raise approximately $400,000 for taxes payable in 2019, the first year it is to be levied, and would be authorized for 10 years. The estimated total cost of the projects to be funded over that time period is approximately $ 4,000,000. The money raised by this authorization will provide funds for the acquisition, installation, replacement, support and maintenance of software, computers, mobile devices, improved technology, technology systems, networks, infrastructure, office and instructional technology, and related training. Yes No Shall the increase in the revenue proposed by the board of Independent School District No. 883 be approved? BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE.

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25 Raised to institute new technology initiatives PLUS reduce a portion of the general fund expenses currently taken out of the general 3.576% to raise $400,000 annually

26 New Initiatives in Technology A three year life cycle Rockford High School: Take home Chromebooks for all students in grades 9 12 Rockford Middle School - Center for Environmental Studies: Chromebook Carts for all classrooms grades 5 8 Rockford Elementary Arts Magnet School: Chromebook Carts 1 for every 2 classrooms in grade 3 & 4 Tablet Carts - 1 for every 2 classrooms in grade K 2 Staff laptops and computers

27 Infrastructure and other upgrades Remaining computer labs Classroom technologies (interactive boards, document cameras, projectors) Network/Wireless Infrastructure Telecommunications, printers, other peripherals

28 Three Tax Forms to consider Special Property Tax Refund Minnesota Homestead Credit Refund Senior Citizen Property Tax Deferral

29 Special Property Tax Refund If your total property taxes increase by more than 12 percent and more than $100 from one year to the next, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund. To determine eligibility and refund amounts complete Minnesota tax form M1PR ( Available online at ).

30 Minnesota Homestead Credit Refund If your adjusted gross income is less than approximately $110,650, you may qualify for the Homestead Credit Refund (also known as the Circuit Breaker refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below. Available each year to owners of homestead property - Applies only to the taxes attributable to the house, garage, and one acre on agricultural homestead property Available to all owners of residential homestead and agricultural homestead property with household incomes of less than $110,650 Refund is on a sliding scale, based on your income and your total property tax burden The maximum refund is $2,710 - Average refund was $853 for property tax year Also available to renters To determine eligibility and refund amounts, complete Minnesota tax form M1PR (available online awww.revenue.state.mn.us).

31 Senior Citizen Property Tax Deferral If you are 65 years or older and have a household income of $60,000 or less, you may be eligible to defer a portion of the property taxes on your home, through the Senior Citizen Property Tax Deferral Program. Some basic facts about this program are summarized below. It limits the maximum amount of property tax you pay to 3 percent of your total household income, and It provides predictability; the amount of tax you pay will not change for as long as you participate in this program. For more information go to: Under the General Information heading, click on Fact Sheets and then click on Senior Citizen Property Tax Deferral.

32 Why do we continue to ask our local voters for financial support?

33 It s for our STUDENTS!

34 Thank You for your support of all our students and families in the Rockford Area Schools Neutral, District-Prepared Material. Prepared and paid for by Independent School District No Rockford Area Schools 6051 Ash Street, Rockford, MN