Murray County Central Schools Levy Referendum Details
Learn about the capital project levy referendum for Murray County Central Schools, ISD No. 2169, scheduled for May 9, 2023. The referendum aims to generate revenue for technology and capital projects through local property tax levies, with taxes spread based on net tax capacity. Explore the background, purpose, and impact of the levy authorization, and understand the reliance on referendums for funding in the education sector. Discover how districts like Murray County Central bridge funding gaps and the breakdown of tax base by property type.
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Presentation Transcript
Capital Project Levy Background & Election Information Murray County Central Schools, ISD No. 2169 May 9, 2023 Election
Capital Project Levy (CPL) Referendum Allows districts to generate additional revenue for technology and capital projects Election ballot question, stated tax rate Revenue provided through local property tax levies Taxes spread on Net Tax Capacity (All taxpayers pay, but may pay different amounts based on the type of property) Revenue may be used for items consistent with the ballot language Annual levy, maximum length of 10 years 2
Reliance on Referendums Since 2002-03, state General Education Revenue formula has not kept pace with inflation If allowance increased with inflation each year, it would be $1,263 higher, or $8,126 for Fiscal Year 2022-23 2022-23 2002-03 2022-23 Legislature approved 2.0% ($135 per pupil) increase for Fiscal Year 2022-23 3
Reliance on Referendums Other funding sources (e.g., special education) also have not kept pace with inflation Only options for districts to bridge funding gap are to cut budgets or request operating referendum and/or capital project levy revenue authority from voters; most districts have done both 5
Tax Base by Property Type School District: Murray County Central (ISD # 2169) Assessment Year 2021 (Taxes Payable 2022) Tax Base by Property Type Percent of Total Referendum Market Value Percent of Total Net Tax Capacity* Percent of Total Market Value Totals 1,534,278,897 100.0% 304,068,916 100.0% 13,403,758 100.0% Residential Homestead Other Residential Commercial / Industrial Non Qualifying Agricultural Qualifying Agriculture Seasonal Recreational TIF & FD 171,387,426 26,184,000 69,819,200 37,810,940 1,176,074,431 53,002,900 11.2% 1.7% 4.6% 2.5% 76.7% 3.5% 169,941,128 25,887,225 69,819,200 37,200,063 55.9% 8.5% 23.0% 12.2% 0.0% 0.4% 1,417,165 274,495 1,296,806 295,735 9,615,519 534,550 -30,512 10.6% 2.0% 9.7% 2.2% 71.7% 4.0% -0.2% - 1,221,300 *Totals include TIF & Fiscal Disparities adjustments 6
District Specific Information May 9, 2023 ballot question Question 1: Capital Project Levy Authorization Authorize capital project levy in the amount of 3.499% times the NTC of the District Raises approximately $530,000 annually, beginning with taxes payable in 2024/Fiscal Year 2024-25 Levy authority would expire after 10 years 7
Tax Impact Annual Revenue $530,000 Estimated Annual Taxes Payable in 2024 for Capital Project Levy* Type of Property Estimated Market Value $50,000 75,000 100,000 125,000 150,000 175,000 200,000 250,000 300,000 400,000 500,000 $10 16 25 35 44 54 63 82 101 140 175 Residential Homestead $50,000 100,000 250,000 500,000 $26 52 149 324 Commercial/ Industrial 8
Tax Impact Annual Revenue $530,000 Estimated Annual Taxes Payable in 2024 for Capital Project Levy* Type of Property Estimated Market Value Agricultural Homestead ** $4,000 5,000 6,000 7,000 8,000 $0.70 0.87 1.05 1.22 1.40 (average value per acre of land & buildings) Agricultural Non-Homestead ** (average value per acre $4,000 5,000 6,000 7,000 8,000 $1.40 1.75 2.10 2.45 2.80 of land & buildings) 9
May 9, 2023 Election Timeline Publish election notice Between May 12th - 19th By May 5th Twice by May 2nd May 9th Canvass results of special election Post sample ballot (between 3rd & 10th day following election) 12
State Property Tax Refunds & Deferral State of Minnesota has two tax refund programs & one tax deferral program available for owners of homestead property Programs may reduce net tax burden for local taxpayers, when property owners complete & submit forms For help with forms & instructions Consult your tax professional, or Visit Department of Revenue web site at www.revenue.state.mn.us 13
State Property Tax Refunds & Deferral Homestead Credit Refund Available for all homestead property, both residential & agricultural - house, garage & one acre (HGA) only Refund is sliding scale, based on total property taxes & income (maximum refund is $2,930 for homeowners & $2,280 for renters) Special Property Tax Refund Available for all homestead property, both residential & agricultural (HGA only) with a gross tax increase of at least 12% & $100 over prior year Refund is 60% of tax increase that exceeds greater of 12% or $100 (max $1,000) Senior Citizen Property Tax Deferral Allows people 65 years of age or older with household income of $60,000 or less to defer a portion of property taxes on their home Deferred property taxes plus accrued interest must be paid when home is sold or homeowner(s) dies 14
