Operating Levy Renewal - 2013

Levy versus Bond

Levy = Learning

Bond = Building

Declining Enrollment

Student enrollment is the key driving factor for revenue from the State of Minnesota and revenue generated by local operating levies.

Number of Hastings Students

5100Student

s

4600Student

s

Back to the Classroom

Teachers returned to the classroom:

Year Teachers

2005 282

2013 306

In 2003, the Hastings School District was operating in the red. We made a promise that we would lower class sizes when we became financially stable. Our enrollment has continued to decline and we have continued to add teaching staff. We have kept our promise!

2009/10 2016/17$28,300,000

$28,400,000

$28,500,000

$28,600,000

$28,700,000

$28,800,000

$28,900,000

Question: How does an extra $78 per pupil from the State of Minnesota result in less money for our district?

Answer: We have fewer students.

Note: The taxes have increased an average of $8.86 each year, over a thirteen year period. During that time the Hastings Community supported the following projects:

2001 $43.6 Million High School - Bond2003 Operating Levy2004 $5.4 Million Electrical & HVAC improvements at JFK and

Pinecrest Elementary - Bond2005 Operating Levy2006 $1.2 Million Library/Media Center at JFK Elementary – Bond2009 $19.2 Million Low Interest Bond Projects – Bond2011 Renewal of Operating Levy

School District - Property Tax History 2000 vs. 2013

Referendum Revenue

The State of Minnesota will help to pay for our operating levies more than ever before. School District Property taxes will not increase with a “Yes” vote on the renewal of the operating levy.

Local Tax Burden

Local Tax Burden

State Aid = $209,143

State Aid =

$1,150,045

Taxpayer Burden

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

6,000,000

6,500,000

7,000,000

7,500,000

8,000,000

8,500,000

Taxpayer Burden

The school district has structured the operating levy to increase by the state rate of inflation (estimated at 1.5% - 1.8%) annually.

Because the State of Minnesota is helping with the tax burden, it will take an estimated 8 years, for the tax burden to reach the level taxpayers were responsible for in 2012.

Current Taxpayer Burden $8.1 Million

What this means to Taxpayers…

Tax Impact of the State Equalization Formula

Impact on the Taxpayers

Declining Enrollment/City Growth

Question: Student enrollment has declined while the population of the City has increased, what does this mean for the taxpayers? Answer: There are more people to share the cost of the tax burden.

2003 2013

District Enrollment 5,100 4,600

City Population 19,692 22,246

2,500

7,500

12,500

17,500

22,500

5,100

4,600

19,692

22,246

City of Hastings Population

School District Enrollment

2013 Ballot

Language

School District Taxes will decrease with a yes vote. However, legally the ballot has to state that there is a tax increase because the levy amount will increase by the state inflationary rate over the life of the levy.

You decide…

Ballot Question Tax Impact