Budget Planning February 22, 2016 Board of Education Meeting

Transcription

1 Budget Planning February 22, 2016 Board of Education Meeting Working Budget Topics: Tax Levy Limit Calculation, Debt Service & Bus Proposition

2 Tax Levy Limit This is the 5 th year of the tax levy limit or cap Based on the state s formula, our maximum allowable limit is a 3.48 percent increase over the current year s tax levy. As you can see, it s not 2 percent This figure is a threshold that determines what level of voter support is needed If the proposed tax levy increase is within the threshold, a simple majority (more than 50 percent) is needed. If the proposed increase exceeds the threshold, 60 percent voter approval is required. 2/23/2016 1

3 Exclusions in the Formula Taxes that school districts levy to pay for certain expenses are exempt from the lax levy limit calculation. After a school district calculates its limit, it is then required to add these exclusions to that amount to get to the maximum allowable tax levy. Exclusions in the formula include: Voter-approved local capital expenditures Increases in the state-mandated employer contribution rates for teacher and employee pensions that exceed two percentage points. Court orders/judgments resulting from tort actions of any amount that exceeds 5 percent of a district s current tax levy. Tax certioraris are not exempt. 2/23/2016 2

4 Exclusions in the Formula The only exclusion available to Mohonasen for is the Capital Tax Levy Exclusion Amount of the exclusion is the difference between voter approved Capital Expenses (construction projects and bus purchases) and the aid received for those same expenses. ESTIMATED - total approved Capital Expenses in are $3,884,186. ESTIMATED - total aid to be received related to these expenses is $2,811,099. $1,073,087 is the allowable exclusion that is be factored into the tax levy limit calculation. 2/23/2016 3

5 Calculating the Capital Exclusion Non-Project Current Project ESTIMATED Total ESTIMATED Capital Debt $2,311,168 $1,169,948 $3,481,116 Bus Debt $403,070 $0 $403,070 Total Debt $2,714,238 $1,169,948 $3,884,186 Building Aid $1,979,376 $583,703 $2,563,079 Bus Aid $248,020 $0 $248,020 Total Aid $2,227,396 $583,703 $2,811,099 Capital Exclusion $486,842 $586,245 $1,073,087 2/23/2016 4

6 PROJECTED Mohonasen Tax Levy Limit Calculation Prior year tax levy $25,189,220 Tax base growth factor (if any)* X Payments in lieu of taxes (PILOTs) receivable during prior year + $0 Taxes levied for exemptions during prior year (not ERS & TRS) - $377,888 Adjusted Prior Year Tax Levy = $24,962,467 Allowable levy growth factor (lesser of 2% or CPI) X Payments in lieu of taxes (PILOTs) receivable in coming year - 0 Available carryover (if any) + 0 Tax Levy Limit = $24,992,422 Coming School Year Exclusions + $1,073,087 Maximum Allowable Tax Levy (requiring simple majority approval of more than 50% of voters) = $26,065,510 Maximum allowable tax levy increase (percentage) 3.48% *provided by NYS Tax & Finance Dept. 2/23/2016 5

7 Off-Set* of Capital Exclusion - Estimated Calculated Exclusion Potential "Off-Set" Updated Exclusion with "Off-Set" Capital Exclusion Levy Limit Calculation $1,073, % $300,000 $773, % *Off-set would be funded by Debt Service Account, final amount will be approved by Board of Education 2/23/2016 6

8 PROJECTED Mohonasen Tax Levy Limit Calculation Prior year tax levy $25,189,220 Tax base growth factor (if any)* X Payments in lieu of taxes (PILOTs) receivable during prior year + $0 Taxes levied for exemptions during prior year (not ERS & TRS) - $377,888 Adjusted Prior Year Tax Levy = $24,962,467 Allowable levy growth factor (lesser of 2% or CPI) X Payments in lieu of taxes (PILOTs) receivable in coming year - 0 Available carryover (if any) + 0 Tax Levy Limit = $24,992,422 Coming School Year Exclusions + $773,087 Maximum Allowable Tax Levy (requiring simple majority approval of more than 50% of voters) = $25,765,510 Maximum allowable tax levy increase (percentage) 2.29% *provided by NYS Tax & Finance Dept. 2/23/2016 7

9 Assessed Value vs. Full Value Scenario 1 No Off-Set to Capital Expenses Town Assessed Value Equalization Rate Full Value/Market Value Current Tax Rate (per $1,000 of assessed value) Total Current Taxes Tax Rate with 3.48% Tax Levy Rotterdam $150, % $150,000 $17.25 $2,590 $17.85 $.60 increase Guilderland $132,000 88% $150,000 $19.60 $2,590 $20.28 $.68 increase Colonie $101, % $150,000 $25.55 $2,590 $26.41 $.86 increase Total Taxes with 3.48% Tax Levy $2,677 $87 increase $2,677 $87 increase $2,677 $87 increase 2/23/2016 8

10 Assessed Value vs. Full Value Scenario 2 Off-Set Capital Expenses estimate $300,000 Town Assessed Value Equalization Rate Full Value/Market Value Current Tax Rate (per $1,000 of assessed value) Total Current Taxes Tax Rate with 3.48% Tax Levy Rotterdam $150, % $150,000 $17.25 $2,590 $17.64 $.39 increase Guilderland $132,000 88% $150,000 $19.60 $2,590 $20.04 $.44 increase Colonie $101, % $150,000 $25.55 $2,590 $26.13 $.58 increase Total Taxes with 3.48% Tax Levy $2,647 $57 increase $2,647 $57 increase $2,647 $57 increase 2/23/2016 9

11 Tax Rebates Potential rebate of $185 Rebate checks projected to be mailed by October 31 st Criteria Need to be receiving STAR exemption Household income of less than $200,000 District must be tax cap compliant Rebate can not be greater than tax bill 2/23/

12 Pupil Transportation PROPOSED Bus Purchase Requests 5 - Full size 66 passenger buses Proposition Amount = $560,000 Less State Share of Trans. Aid 68.4% = ($383,040) Est. Budget Impact District Share over 5 years = $176,960 (approx. $35,392 per year) No impact to budget - Debt/bond payments and state aid payments begin school year following a bus purchase, in this case Would increase current bus payment by approximately $10,000. 2/23/

13 Pupil Transportation PROPOSED Bus Purchase Requests Other factors to consider: Maintenance costs of buses, larger cost for older buses Increased potential for large repair costs with older buses New buses are more efficient, environmentally conscious New buses have camera systems and other, newer safety features, including LED strobe lights and child check safety feature Camera systems $2,500 per bus Transportation aid continues to decrease: From 79% to 68.4% in last five years Bus fleet replacement schedule 2/23/

14 Board of Education Vacancies Two (2) at large seats Three-year terms At least 35 signatures required on petition Petitions will be available in the District Office, March 22 Petitions are due back to the District by Monday, April 18 at 5 p.m. 2/23/

15 Questions and Discussion 2/23/

16 Next Steps Next BOE Meeting: March 8, 2016, 7 p.m. : State Aid? General Support (Operations & Maintenance, Transportation) Working budget presentations will continue through March & April Contact your elected representatives Need tips? Ideas? Contact info? Go to Ask your elected leaders: What is the plan for NY s schools? April 19, 2016: Adoption of budget proposal May 17, 2016: Annual Budget Vote & BOE Election 2/23/