Understanding Perham-Dent Public School Budget Cycle
Discover insights into the budget cycle and tax levy process of Perham-Dent Public School for managing finances and setting property taxes payable in 2025. Learn about the importance of Truth in Taxation meetings, the distinction between budget approval and tax levy certification, and the specific budget information and fund allocation for the school district.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
PERHAM-DENT PUBLIC SCHOOL Public Hearing for Taxes Payable in 2025
Why have a Truth in Taxation Meeting? Truth in Taxation Law, passed in 1989 MS 275.065 Tax Statement Counties must send out proposed property tax statement in November based on proposed tax levies set by all taxing jurisdictions (counties, cities, townships, school district, etc.) Public Hearing Most taxing jurisdictions must hold a public hearing prior to certifying the final levy and discuss: Payable 2025 Levy Fiscal Year 2025 Budget Public Comments
Budget Cycle vs. Tax Levy Budget Cycle vs. Tax Levy Unlike cities and counties, a school district does not set its budget when setting the tax levy Budget School fiscal year is July 1 through June 30 Final budget is approved in June six months later Mid-year budget revisions in January Property Tax Levy Final levy is set in December Property taxes are levied on a calendar year basis
2024 2024 Payable Payable 2025 2025 Levy Levy For For School Year Or Or 2026 ( (FY26) 2025 2025- -2026 2026 School Year Fiscal Year Fiscal Year 2026 FY26)
Budget Information Budget Information Because approval of the budget lags behind certification of the tax levy by six months, only current year budget information will be presented at this hearing
Budget Information Budget Information All school district budgets are divided into separate funds, based on purposes of revenue, as required by law For Perham-Dent Public Schools: General Fund Food Service Fund Community Service Fund Debt Service Fund OPEB Trust Fund
Perham Perham- -Dent School District Dent School District 2024 2024- -2025 Budgeted 2025 Budgeted Revenues Revenues and Expenditures and Expenditures GENERAL FUND REVENUES Local Property Tax $ 2,767,061 Other Local Revenue $ 768,343 Revenue from State Sources $ 18,738,755 Revenue from Federal Sources $ 314,395 $ 22,588,554 EXPENDITURES $ 21,761,568 PROJECTED NET CHANGE IN FUND BALANCES $ 826,986
Perham Perham- -Dent School District Dent School District 2024 2024- -2025 2025 Budgeted Revenues and Expenditures Revenues and Expenditures Budgeted Food Service Fund Community Service Fund Debt Service Fund OPEB Trust Fund $ 1,756,100 $ 531,410 $ 2,964,223 $ 30,000 REVENUES $ 1,667,644 $ 551,231 $ 2,972,100 $ 142,000 EXPENDITURES NET CHANGE IN FUND BALANCE $ 88,456 $ (19,821) $ ( 7,877) $ (112,000)
2024 2024- -2025 District Wide District Wide Budgeted Revenue Budgeted Revenue 2025 $30,000 $531,410 $2,964,223 $1,756,100 General Fund Food Service Fund Community Service Fund Debt Service Fund OPEB Trust Fund $22,588,554
2024 2024- -2025 District Wide District Wide Expenditure Budget Expenditure Budget $551,231 $2,972,100 2025 $142,000 $1,667,644 $21,761,568 General Fund Community Service Fund OPEB Trust Fund Food Service Fund Debt Service Fund
2024 2024- -2025 General Fund General Fund Budgeted Revenue Budgeted Revenue 2025 Other Local Revenue 4% Revenue from Federal Sources 1% Local Property Tax 12% Revenue from State Sources 83%
2024 2024- -2025 General Fund General Fund Budgeted Expenditures Budgeted Expenditures 2025 Other 1% Equipment, Building,& Grounds 3% Purchased Services 16% Supplies & Materials 4% Employee Benefits 18% Salaries & Wages 58%
Proposed Tax Levy Proposed Tax Levy Information Information
How is my property tax How is my property tax determined? determined?
What Impacts Your Tax Bill? Change Change in value to in value to the individual property the individual property Change in total value of all property in the Change in total value of all property in the district district Increases or decreases in levy amounts Increases or decreases in levy amounts caused by changes in state funding formulas, caused by changes in state funding formulas, local needs and costs, voter local needs and costs, voter- -approved referendums and other factors. referendums and other factors. approved
Know Your Valuation Property classification and market value Sent Spring 2023; cannot change value Watch for 2024 statement in SPRING and where to appeal
INDEPENDENT SCHOOL DISTRICT NO. 549 2024 PAYABLE 2025 Taxes Paid 2024 Calendar Year for the 2024-25 School Year FUND AND LEVY COMPONENT 2024 Payable 2025 2023 Payable 2024 DIFFERENCE GENERAL FUND LOCAL OPTIONAL REVENUE - Tier I LOCAL OPTIONAL REVENUE - Tier II EQUITY TRANSITION OPERATING CAPITAL ACHIEVEMENT AND INTEGRATION REEMPLOYMENT SAFE SCHOOLS CAREER TECHNICAL LONG TERM FACILITY MAINTENANCE (LTFM)* BUILDING/LAND LEASE ADJUSTMENTS $ $ $ $ $ $ $ $ $ $ $ $ 535,260.00 756,500.80 295,775.75 70,172.58 362,474.18 40,660.81 2,500.00 64,231.20 144,599.70 370,379.53 201,057.00 (251,712.10) $ $ $ $ $ $ $ $ $ $ $ $ 549,060.00 776,004.80 303,149.75 71,981.76 302,527.07 51,423.20 5,000.00 65,887.20 142,947.05 360,057.86 201,057.00 (62,034.19) (13,800.00) $ (19,504.00) $ (7,374.00) $ (1,809.18) $ 59,947.11 $ (10,762.39) $ (2,500.00) $ (1,656.00) $ 1,652.65 $ 10,321.67 $ $ (189,677.91) $ - TOTAL GENERAL FUND LEVY $ 2,591,899.45 $ 2,767,061.50 (175,162.05) $
School District Tax Levy Possible reasons for changes: Change in enrollment numbers Change in valuation of property in district Equalization aid depends on district property wealth per pupil Local decisions and requirements Adjustment for prior years (estimate to actual) Legislative changes
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: Local Optional Revenue Tier I Change = $ (13,800.00) Tier I Change = $ (13,800.00) Tier II Change: Tier II Change: = $ (19,504.00) $ (19,504.00) Use of Funds Use of Funds: General Operating Expenses Reason for Increase Reason for Increase: Funding for this program is provided through a combination of state aid and local tax levies Change in enrollment No Tier 1 or Tier 2 state aid received
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: Operating Capital Change: Change: = $ 59,947.11 $ 59,947.11 Use of Funds Use of Funds: Improve and Repair School Sites and Buildings, Special Assessments, Technology Equipment, Textbooks, Vehicles, Etc. Reason for Increase Reason for Increase: Shift between amount of Aid vs Levy The amount of Aid from MDE decreased
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: Long Term Facility Maintenance Change: Change: = $ 10,321.67 Use of Funds Use of Funds: Deferred capital expenditures and maintenance projects necessary to prevent further erosion of facilities, health and safety projects and increase accessibility of school facilities Reason for Increase Reason for Increase: Increase in average building age
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: General Fund Adjustments Change: Change: = $ (189,677.91) Use of Funds Use of Funds: General Operating Expenses Reason for Decrease Reason for Decrease: Initial levies are best estimates with prior year levy adjustments calculated by state for up to three years, FY23 LTFM Adjustment for building age
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: General Fund Adjustments Adjustments FY2025 Equity Adjustment FY2023 LOR Tier 1 Adjustment FY2025 LOR Tier 1 Adjustment FY2025 LOR Tier 2 Adjustment FY2023 LOR Tier 2 Adjustment FY2023 Equity Adjustment FY2025 Transition Adjustment FY2023 Transition Adjustment FY2025 Operating Capital Adjustment FY2023 Operating Capital Adjustment FY2023 Achievement & Integration Adjustment FY2025 Achievement & Integration Adjustment FY2023 Reemployment Adjustment FY2023 Safe School Adjustment FY2025 LTFM Equal Adjustment FY2024 LTFM Equal Adjustment FY2023 LTFM Equal Adjustment Pay 22 Lease Adjustment Advance Abatement Adjustment TOTAL ADJUSTMENTS $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (6,183.15) 25,926.84 (11,280.00) (15,942.40) 32,342.72 12,650.40 (1,478.80) 3,000.09 (904.27) 1,337.82 (3,447.80) (1,129.60) (2,021.25) 2,746.08 (7,397.10) (2,973.99) (276,285.43) (460.32) (211.94) (251,712.10)
2024 PAYABLE 2025 Taxes Paid 2024 Calendar Year for the 2024-25 School Year FUND AND LEVY COMPONENT 2024 Payable 2025 2023 Payable 2024 DIFFERENCE COMMUNITY SERVICE FUND BASIC COMMUNITY ED ECFE ADJUSTMENTS TOTAL COMM SERVICE LEVY $ $ $ $ 92,570.02 80,267.23 (155.70) 172,681.55 $ $ $ $ 92,570.02 67,574.61 (3,354.18) 156,790.45 $ 12,692.62 $ 3,198.48 $ 15,891.10 $ - DEBT SERVICE LEVY DEBT SERVICE $ 2,963,510.33 $ 2,964,222.63 $ (712.30) TOTAL LEVY $ 5,728,091.33 $ 5,888,074.58 (159,983.25) $
EXPLANATION OF LEVY CHANGES EXPLANATION OF LEVY CHANGES Category: Category: ECFE Change: Change: = $ 12,692.62 Use of Funds Use of Funds: ECFE Programming Reason for Increase Reason for Increase: Shift in State Aid versus Levy
TAX IMPACT TAX IMPACT
Permanent law enacted in 2017 Affects all existing Fund 7 debt levies, except OPEB bonds Reductions for farmers and timber owners Will remain at 70% in 2025 The revenue for Ag2School comes from state income, sales and other tax revenue
State Property Tax Refunds State Property Tax Refunds The State of Minnesota has two tax refund programs and one tax deferral program available for owners of homestead property Minnesota Property Tax Refund (aka Circuit Breaker Refund) Special Property Tax Refund Senior Citizen Property Tax Deferral
State Property Tax Refunds State Property Tax Refunds For help with the forms and instructions: Consult your tax professional, or Visit the Department of Revenue website at www.taxes.state.mn.us
Next Steps Next Steps Board will accept public comments and questions on proposed levy Board action to certify the 2025 school tax levy
QUESTIONS? Thank you for attending this hearing.
