LEVY OVERVIEW AND LEVY CERTIFICATION INFORMATION Where do all these numbers come from? Tax Levy Workshop September 2016 Tom Melcher Terri Yetter Dave Lobejko Division of School Finance 1500 Highway 36 West Roseville, MN 55113 (651) 582-8779 http://education.state.mn.us
Table of Contents Division of School Finance Contacts... 3 Class Rates Used in Computing Net Tax Capacity... 4 School District Levy Limitation and Certification Calendar... 5 Dates of Importance for the November 8, 2016 Referendum Elections... 10 Truth in Taxation... 11 Department of Education Website... 12 Data Collection Systems... 13 ADM/LEP Reporting System... 13 View Estimated ADM and EL Counts... 14 Sum School Adjusted ADM and Authorized Submission... 15 Long-Term Facilities Maintenance / Health and Safety Reporting System... 16 Levy Information System... 19 Health Benefits and OPEB... 20 Pupil Transportation... 21 Elementary and Secondary Sparsity... 22 Building/Land Lease... 23 Debt Service... 26 General and Community Services... 28 Levy Information Status... 30 Spreadsheet Data on MDE Website... 31 Referendum Phaseout Details Through Calendar Year 2015 Elections... 32 Referendum Cap Inflation Adjustment... 33 Tax Replacement Aid Spreadsheet... 34 Sparsity Revenue: 2014-15 Spreadsheet... 35 Building Age Report: 2014-15... 36 1
Table of Contents (continued) Minnesota Funding Reports... 37 Aid Entitlement Reports... 38 FY 2017 General Education Aid Report... 39 FY 2015 General Education Aid Report... 42 FY 2017 Compensatory Revenue Report... 43 Q Comp Enrollment Calculation... 44 14-15 Career Technical Education Final Levy Adjustment Update... 45 FY 2017 Integration Revenue Report... 46 FY 2017 Capital Health and Safety Aid Report... 47 Abatement Aid Report... 48 Levy Limit and Certification Reports... 49 Adjustment to School Tax Report... 50 Data Submitted by County Auditors on Paper Forms... 51 School Tax Report, 2013 Payable 2014... 52 School Tax Abatement Report, Calendar Year 2015... 53 School Tax Abatement Six-Month Supplement Report... 54 2
DIVISION OF SCHOOL FINANCE CONTACTS For technical assistance with accessing information via the MDE website, please contact David Lobejko at 651-582-8383 or david.lobejko@state.mn.us. Questions on specific levy components should be directed as follows: Program Area Contact Phone Email ADM and EL Jeanne Krile 651-582-8637 jeanne.krile@state.mn.us Projections Career and Technical Jan Carlson 651-582-8342 janice.carlson@state.mn.us Education Levy General Education Revenue, Referendum Levies Michael Schwartz Jon VanOeveren 651-582-8399 651-582-8375 michael.schwartz@state.mn.us jon.vanoeveren@state.mn.us Alternative Teacher Compensation Revenue Miscellaneous Levies including: Reemployment, Safe Schools, Judgment, Health Benefits, Reorganization Retirement/Severance, Economic Dev Abate, and Admin Services Non-public Transportation Revenue Community Education, ECFE, Home Visiting, School-Age Care and Integration Revenues Other Postemployment Benefits (OPEB) Long-Term Facilities Maintenance Revenue, Capital Expenditure and Debt Service Levies Building/ Land Lease Levy, Swimming Pool Levy, Ice Arena Levy, Consolidation Transition Revenue, Reorganization Operating Debt, and Taconite Adjustments David Lobejko 651-582-8383 david.lobejko@state.mn.us David Lobejko 651-582-8383 david.lobejko@state.mn.us Greg Sogaard 651-582-8858 greg.sogaard@state.mn.us Jan Carlson 651-582-8342 janice.carlson@state.mn.us Jan Carlson 651-582-8342 janice.carlson@state.mn.us Lonn Moe 651-582-8569 lonn.moe@state.mn.us Bill Kiesow 651-582-8801 bill.kiesow@state.mn.us 3
CLASS RATES USED IN COMPUTING NET TAX CAPACITY Property Tax Class Residential Homestead (1a) & Migrant Housing (1d) Up to $500,000 Over $500,000 Disabled homestead up to $50,000 (1b) Residential Non-Homestead Single unit (4bb) Up to $500,000 Over $500,000 1-3 units, undeveloped resident land, & unclassified mftg homes (all 4b) Apartments: Regular 4+ units (4a), including for profit hospitals Low-income rental housing (4d) Up to 100,000 Over 100,000 Commercial-Industrial-Public Utility (3a) Up to $150,000 Over $150,000 Other public utility machinery Electric generating machinery Commercial Seasonal Recreational Residential--Homestead Resorts (1c) Up to $600,000 (tier one) $600,000 to $2.3 million (tier two) Over $2.3 million (tier three) Commercial Seasonal Recreational Residential--Seasonal Resorts (4c(1)) Up to $500,000 Over $500,000 Non-Commercial Seasonal Recreational Residential--Cabins (4c(1)): Up to $500,000 Over $500,000 Qualifying Golf Courses (4c(2)) Nonprofit Community Service Oriented Organization (4c(3)) Postsecondary Student Housing (4c(4)) Manufactured Home Parks (4c(5)) Qualifying Metro Nonprofit Recreational Property (4c(6)) Certain Non-commercial Aircraft Storage Hangars (4c(7) and 4c(8)) Bed and Breakfast--up to 5 units (4c(9)) Agricultural Homestead (2a) House, Garage and One Acre Up to $500,000 Over $500,000 Land and Buildings Up to $1,900,000 Over $1,900,000 Agricultural Non-Homestead and Timberland (2b) Tax Rate Pay 2017 1.00% 1.25% 0.45% 1.00% 1.25% 1.25% 1.25%.75%.25% 1.50% 2.00% 2.00% 2.00% 0.50% 1.00% 1.25% 1.00% 1.25% 1.00% 1.25% 1.25% 1.50% 1.00% 1.25% 1.25% 1.50% 1.25% 1.00% 1.25% 0.50% 1.00% 1.00% Tax Rate Pay 2018 1.00% 1.25% 0.45% 1.00% 1.25% 1.25% 1.25%.75%.25% 1.50% 2.00% 2.00% 2.00% 0.50% 1.00% 1.25% 1.00% 1.25% 1.00% 1.25% 1.25% 1.50% 1.00% 1.25% 1.25% 1.50% 1.25% 1.00% 1.25% 0.50% 1.00% 1.00% Subject to State Levy? Miscellaneous and Iron Ore Property (5) 2.00% 2.00% Only for iron 1 For the purposes of the state general tax only, the tax rate for the first $76,000 of non-commercial class 4c(1) seasonal residential recreational property is 0.40 percent. No No Yes Yes Yes No No No Yes Yes 1 No No 4
SCHOOL DISTRICT LEVY LIMITATION AND CERTIFICATION CALENDAR 2016 Payable 2017 Levy July 28, 2016 March 15, 2016 June 17, 2016 June 30, 2016 Deadline for eligible school districts to submit locally approved integration plan and budget for FY 2017. Plan and budget should be submitted to the Minnesota Department of Education (MDE), Office of Equity and Innovation. Deadline for districts to submit Career and Technical estimated expenditures. Deadline for filing a board resolution with the commissioner requesting sparsity revenue adjustment for a school facility closed for FY 2017. Deadline for cooperative secondary facilities districts and school districts participating in an agreement for secondary education, or reorganizing under dissolution and attachment to request levy authority for severance pay and/or early retirement incentives. School districts making a transfer from the debt redemption fund to the general fund should notify the department of the amount transferred by this date. July 1, 2016 n/a n/a n/a Department of Revenue certifies final 2015 adjusted net tax capacity for each district before this date. Deadline for board resolution adopting a population estimate for community education and/or adult basic education revenue. Deadline to submit population estimated for community education and/or adult basic education revenue to the State Demographer. Deadline for school districts to submit requests for a debt service loan. 5
n/a July 15, 2016 July 31, 2016 August 15, 2016 Due date for FY 2016 Early Childhood Family Education Annual Report (ED- 01844). A district may not certify a levy for ECFE unless it has submitted the report. Deadline for county auditors to submit Six-Month Supplemental School Tax Abatement Report for current year to MDE, School Finance. Deadline for school districts to submit annual Long-Term Facilities Application - including school board certified revenue projection and expenditures, and statement of assurances. Deadline for school districts to submit Disabled Access Revenue Levy Authority Application. Deadline for consolidating districts to request levy authority for retirement incentives. Deadline for cooperative secondary facilities districts and school districts participating in an agreement for secondary education, or reorganizing under dissolution and attachment to request levy authority for severance pay and/or early retirement incentives. School districts making a transfer from the debt redemption fund to the general fund should notify the department of the amount transferred by this date. Deadline for districts to submit preliminary information on bonding for OPEB liabilities. All information must be finalized by October 27, 2016. Deadline for districts to submit Debt Service data via Levy Information System in order for it to appear on the initial levy report by September 8, 2016. (Data may be revised through September 30, 2016.) August 26, 2016 Last day to adopt resolution calling for referendum election. ** n/a n/a Last day to notify county auditors of the date of the election and the questions to be voted on. ** At least 74 days prior to election, when election is held on general Election Day. Minnesota Statutes, section 205A.07, subdivision 3. Last day to notify the commissioner of Education of the date of the election and the questions to be voted on. ** At least 74 days prior to election day, when election is held on general election day Minnesota Statutes, section 205A.07, subdivision 3a. 6
Last day for school districts to review and update the EDRS ADM and EL estimates for 2016-17, and 2017-18 for the initial levy report and forecast. Additional changes can be made for 2017-18 through September 30, 2016, for levy purposes. n/a n/a August 29, 2016 August 31, 2016 September 8, 2016 September 15, 2016 September 16, 2016 September 30, 2016 Deadline for districts to submit Career and Technical actual expenditure changes for 15-16 for levy report. Deadline for districts to submit the following data via Levy Information System. After this date, data may be revised through September 30, 2015 (but only by contacting MDE staff). Contact Information Health Benefits and Annual Postemployment Benefits (OPEB) Pupil Transportation Elementary Sparsity Secondary Sparsity Building/Land Lease Debt Service (August 15) General and Community Service Last day a district may make changes via Health and Safety website. Deadline for MDE to certify levy limitations to school districts. Deadline for districts to request approval from the commissioner to retain debt excess. Deadline to adjust the 2016 Payable 2017 maximum costs for Health and Safety projects. Deadline to pass a board resolution to convert existing referendum authority from voter-approved to board-approved or to authorize new boardapproved authority for taxes payable in 2017. Deadline for school districts to submit data changes to MDE. n/a Deadline for school boards to certify proposed property tax levies to home county auditor.* For those school districts that have reached an agreement with their home county auditor as to a delayed date for certifying the proposed levy, this date may be extended to October 7. n/a Deadline for MDE to certify school district levy limitations to county auditors.* 7
October 7, 2016 October 28, 2016 n/a November 1, 2016 November 2, 2016 n/a November 8, 2016 November 24, 2016 After November 24, 2016, but before final levy is adopted Five working days after December 20, 2016 (December 28, 2016) Deadline for school district to submit copy of proposed levies to MDE. For those school districts that have reached an agreement with their home county auditor as to a delayed date for certifying the proposed levy, this date is extended to October 10, 2016. Deadline for school districts holding referendum elections on November 8 to deliver by first class mail a notice of the referendum to each taxpayer in the district (at least 10 days prior to date of election). The notice may not be mailed to taxpayers prior to October 9 (no more than 30 days prior to election). ** Deadline for school districts holding referendum elections on November 8 to provide copy of first class mail notice to county auditors and to MDE.** Annual Community Education Report is due. MDE, Division of School Finance, removes ECFE and home visiting levy authorities from levy report if ECFE Annual Reports are not received. Last day districts may submit finalized information for OPEB bonding levy authority. General election day. Referendum elections can be held only on this date (except by mailin ballot). ** Minnesota Statues, section 126C.17, subdivision 9. Deadline for county auditor to prepare and county treasurer to deliver by first class mail a notice of proposed property taxes for all taxing authorities to each taxpayer. This notice cannot be mailed earlier than November 11. Minnesota Statutes, section 275.065, subdivision 3. Districts are required to discuss the Payable 2017 Levy and FY 2017 budget at a regularly scheduled board meeting and allow the public to speak. The meeting must take place at 6:00 p.m. or later. The district may adopt the final levy at the same meeting. Minnesota Statutes, section 275.065, subdivision 3. School districts must adopt their final property tax levy.* Deadline for school districts to certify final adopted levies to home county auditor.* Minnesota Statutes, section 275.07, subdivision 1. 8
December 30, 2016 December 31, 2016 January 7, 2017 February 1, 2017 April 1, 2017 Deadline (on or before) for school districts to submit PT Form TNT 2017 and Supplement (if applicable) to the Department of Revenue, Property Tax Division. Deadline for districts to submit FY 2015 actual building/land lease costs via Levy Information System. Deadline for school districts to notify MDE of final certified levies. Deadline for county auditors to submit School Tax Abatement Report for previous year to MDE. Deadline for county auditors to submit School Tax Report to MDE. 9
DATES OF IMPORTANCE FOR THE NOVEMBER 8, 2016 RERERENDUM ELECTIONS Source: MSBA Website Dates of importance for November 3, 2015 referendum elections are as follows: August 26, 2016 September 23, 2016 October 9, 2016 October 18, 2016 October 25, 2016 Last day to adopt resolution calling the referendum election and notify the Commissioner and county auditors. Last day to cancel a special election scheduled for General Election day. 74-day notice required First day absentee ballots must be available for November election (46 days prior to election). First day District may mail required notice (no more than 30 days prior to election). Last day to preregister for November election (at least 21 days prior to date of election). Last day to publish first notice of November election. October 28, 2016 Last day to post notice of November election (at least 10 days prior to date of the election). Campaign finance reports are due if more than $750 spent or received. November 1, 2016 November 4, 2016 November 8, 2016 Last day to publish second notice of November election. Last day to post sample ballot of November election (at least 4 days prior to date of election). Election Day. No public meetings or school events may be held between 6 p.m. and 8 p.m. Voting hours are 7 a.m. to 8 p.m. November 11-18, 2016 November 18-25, 2016 November election canvassing period. Time period for citizens to request a recount (Within 7 days of canvass). 15 days after canvass Last day to notify Commissioner of results of election. 10
TRUTH IN TAXATION 11
DEPARTMENT OF EDUCATION WEBSITE: http://education.state.mn.us Most of the supporting documentation for levy data can be found under: School Support: Data Submissions o ADM/LEP (EDRS) o Health and Safety o Levy Information System o Levy Certification System School Support: School Finance o Facilities and Technology o General Education o Integration o Levy Certification Process Data Center: Data Reports and Analytics o Minnesota Funding Reports (MFR) System o School Finance Spreadsheets 12
DATA COLLECTION SYSTEMS ADM/EL (EDRS) The district can update ADM Projections for FY 2017, FY 2018 and/or FY 2019 via EDRS. The directions are available on the web site: http://education.state.mn.us/mde/schsup/schfin/marssstuacc/avgdailymemb/index.html Districts can also view the data via EDRS. However, unless you want to make changes to the data be sure to "View" the data (Main Menu Item #1) rather than "Enter/Modify" the data (Main Menu Item #2). If you do modify the data (Main Menu Item #2) be sure to authorize the submission (Main Menu Item #3) or we will not pick up your changes. A new levy report will automatically be produced after summing & submitting FY 2017 estimates on EDRS. MAIN MENU of the ADM and EL Projections System: 13
VIEW ESTIMATED ADM AND EL COUNTS: Option #1 Use this option to view the results of your current estimates or the results of your changes. Data is shown at the district level by grade and type of ADM. Cannot change data. Dates are not updated. Date Last Changed: The date a user last viewed or updated the estimates under #2 Update. Date Authorized: The date a user last #3 Summed and Authorized the estimates. Date Last Loaded: The date MDE last uploaded these estimates into the database from which levies and entitlements are produced. New Regular Kindergarten: KG-FD Full Day KG-HD Half Day KG-LA Limited Access Full Day 14
SUM SCHOOL ADJUSTED ADM AND AUTHORIZED SUBMISSION: Option #3 Follow every update session with Sum & Authorize New district totals are displayed. NOTE: Double check the relationship between RESIDENT & ADJUSTED ADM for referendum allowance conversions. Data must be Summed and Authorized to be included in the Levy Report. Data 15-16 16-17 17-18 EXT P2, L62 P2, L63 P2, L64 ADJ P1, L47 P1, L48 P1, L49 RES P1, L36 P1, L37 P1, L38 EL NA NA P2, L114 15
FY 2018 Interim LTFM Aid Entitlement P24, L1704 P21, 1220 P21, L1224 16
DATA COLLECTION SYSTEMS Health and Safety Reporting System FY 2015, FY 2016, FY 2017 To get H & S Approved Project Summary (next page) H & S Funded = Yes + PPA + YE1 Approvals for projects $100k - $500k: YE1 = yes, pay-as-you-go YEM = yes, pay-go, multiyear YEB = yes, bonding P9, L411 P9, L407 P9, L406 P10, L703 17
Health and Safety Reporting System (Cont.) FY 2016 & 2017 District Totals: Only used for levy adjustments FY 2016 & 2018 See cap on FIN Code 352 For H&S Hold Harmless FY 2018 Asbestos, Fire Safety & Indoor Air Quality for >$100k P9, L407 FY 2018 District Total For H&S Hold Harmless: P9, L411 18
DATA COLLECTION SYSTEMS Levy Information System http://education.state.mn.us/mde/dse/datasub/levyinfo/index.html Contact Information Health Benefits and OPEB Pupil Transportation Elementary Sparsity Not in handout Secondary Sparsity Building/Land Lease Payable 2017 Building/Land Lease FY 2016 Actual Costs Building/Land Lease FY 2015 Payable 2015 Levy Adjustment Building/Land Lease FY 2015 Payable 2014 Levy Adjustment Building/Land Lease FY 2014 Payable 2014 Levy Adjustment Debt Service General and Community Services Levy Information Status Changes for the Health Benefits and OPEB, Pupil Transportation Data, Secondary Sparsity Revenue, Building/Land Lease, Debt Service and General and Community Services should be made through the Levy Information System. After October 1, 2016 any changes should be made through School Finance staff (with the exception that the Building/Land Lease FY 2016 Actual Costs and FY Levy Adjustment screens will remain open through December 31, 2016). Instructions on how to access this system can be found on the web site under Levy Certification Process. 19
Health Benefits and Annual OPEB P12, L514 P09, L387 P21, L1210 Click here to Save changes 20
Pupil Transportation P09, L393 P09, L392 P09, L390 P09, L394 P09, L396 21
Elementary and Secondary Sparsity P2, L125 22
Building/Land Lease Payable 2017 Nonjoint (stand alone) -- P11, L478, L479, L482, L483, L487, L488, L491, L492, L497, L498 Intermediate District -- P11, L462-L474 Approved Joint Lease -- P11, L480, L481, L484, L485, L489, L490, L493, L494, L499, L500 23
Building/Land Lease FY 2016 Actual Costs Used to adjust levy next year. 24
FY 2015/Payable 2015 Building/Land Lease Adjustments FY 2015/Payable 2014 Building/Land Lease Adjustments FY 2014/Payable 2014 Building/Land Lease Adjustments Nonjoint (stand alone) -- P22, L1262, L1263, L1265, L1265, L1271, L1272, L1274, L1275 Intermediate District -- P22, L1258, L1259, L1268, L1269 Approved Joint Lease -- P22, L1261, L1264, L1270, L1273 25
Debt Service Edit Bond Schedule Facility Maintenance-H&S>100 -- P13, 703 Facility Maintenance-VPK -- P13, 704 Facility Maintenance-Other -- P13, 705 Regular GO Debt -- P13, L720 Facilities Bonds -- P13, L720 Equipment Bonds -- P13, L721 OPEB Bonds -- P16, L901-L906 26
Debt Service (edit screen) For New Bond Issues 27
General and Community Services P08, L363 P08, L369 P08, L370 P08, L346 P08, L347 P03, L153 28
General and Community Services (cont.) P08, L364 P10, L425 H&S Report P12, L603 P12, L604 P13, L628 P12, L612 P12, L622 29
Levy Information Status Check for date last modified. This is the date the data was saved and made available for levy processing. 30
SPREADSHEET DATA ON MDE WEBSITE CLICK ON: Districts, Schools and Educators o School Finance General Education Referendum for: Referendum Phaseout Details Through Calendar Year 2015 Elections Estimated Cap Inflation Calculation Estimates Spreadsheet FY 2005-2023 Tax Base Replacement Aid spreadsheet CLICK ON: Data Center o Data Reports and Analytics Under School Finance Spreadsheets, click on: General Education From Subcategory drop down, choose Sparsity Revenue for: Sparsity Revenue: 2015 spreadsheet For districts with multiple high schools or elementary sparsity, FY 2015 projected sparsity revenue shown on this spreadsheet and adjusted for formula allowance changes is also used for FY 2017 and FY 2018 projected sparsity revenue OR CLICK ON: Data Center o Data Reports and Analytics Under School Finance Spreadsheets, click on: Facilities and Technology From Subcategory drop down, choose Building Age Reports for: Building Age Report: 2016 Data from this report is used in calculating your actual FY 2016 operating capital revenue and your estimated FY 2017 and FY 2018 operating capital revenue. 31
Referendum Phaseout Details Through Calendar Year 2015 Elections 32
Estimated Cap Inflation Calculation Estimates Spreadsheet FY 2005-2023 P3, L159 P4, L198 33
Tax Base Replacement Aid spreadsheet P6, L277 34
Sparsity Revenue: 2014-15 Spreadsheet P2, L133 35
Building Age Report: 2014-15 Operating Capital P3, L147 Deferred Maint / LTFM P9, L402 36
MINNESOTA FUNDING REPORTS CLICK ON: Data Center o Data Reports and Analytics Under School Finance Reports, click on: Minnesota Funding Reports (MFR) HOW TO NAVIGATE THROUGH FUNDING REPORTS: 1. From District drop down box: select school district 2. From View Reports Added drop down box: select All Reports Or those added in the last Day or Week 3. From Category drop down box: Aid Confirmation Reports Aid Entitlement Reports IDEAS Cash Simulation Reports IDEAS Combined Payment Reports IDEAS Year-End Reports Levy Limitation and Certification Reports Special Education reports (various) Student UFARS Turnaround Reports 37
MINNESOTA FUNDING REPORTS: Aid Entitlement Reports General Education Revenue 14-15, 15-16, 16-17 Compensatory Revenue Calculation 16-17 Q Comp Enrollment Calculation 16-17 Career and Technical CTE Revenue Report 14-15 Integration Revenue Report 15-16, 16-17 Capital Health and Safety Aid 14-15, 15-16, 16-17 Abatement Aid 16-17 38
FY 2017 General Education Aid Report, Page 4 P3, L155 P3, L165 P3, L158 39
FY 2017 General Education Aid Report, Page 5 P5, L232 40
FY 2017 General Education Aid Report, Page 6 P16, L1001 P16, L1005 P16, L1009 P16, L1013 41
FY 2015 General Education Aid Report, Page 8 P07, L302 42
FY 2017 Compensatory Revenue Calculation P2, L112 43
Q Comp Enrollment Calculation P8, L333 44
14-15 Career Technical Education Final Levy Adjustment Update FY 2015 Final Levy Adjustment P21, L1206 45
Integration Revenue Report FY 2017 P08, L349-L353 P08, L351 P19, L1174 46
FY 2017 Capital Health and Safety Aid Report H&S Hold Harmless P09, L411 47
Abatement Aid Report P25, L2020 P24, L2004 P25, L2016-L2019 P25, L2021-L2024 48
MINNESOTA FUNDING REPORTS: Levy Limit and Certification Reports Levy Limitation and Certification Report 16-17 Adjustment to School Tax Report 16-17 Student Data Reports District/School ADM and EL Projections 15-16, 16-17 49
MINNESOTA FUNDING REPORTS: Levy Limit and Certification Reports Adjustment to School Tax Report P23, L1327 P23, L1330 P23, L1333 P23, L1337 P24, L1414 50
DATA SUBMITTED BY COUNTY AUDITORS ON PAPER FORMS: School Tax Report, 2013 Payable 2014 School Tax Abatement Report, Calendar Year 2015 School Tax Abatement Six-Month Supplemental Report Adjustments for Tax Increment Financing Distributions 51
School Tax Report, 2013 Payable 2014 P24, L2006 P24, L2007 P24, L2008 P24, L2009 52
School Tax Abatement Report, Calendar Year 2015 P24, L2001 P24, L2002 P24, L2003 53
School Tax Abatement Six-Month Supplemental Report P25, L2057 P25, L2058 P25, L2059 54