Alexandria

Public Schools
ISD #206
Public Hearing for Taxes
Payable in 2024 6

DECEMBER 18, 2023

P R E S E N T E D B Y:

T R E VO R P E T E R S O N
D I R E C TO R O F B U S I N E S S S E R V I C E S
 A Public Meeting…

• Between November 25th & December 28th

• At 6:00 PM or later
Minnesota • May be part of regularly scheduled meeting
• Must allow for public comments
State Law • May adopt final levy at same meeting
7

Requirements
…and Presentation of:

• Current year budget

• Proposed property tax levy
 Truth in Taxation Hearing Agenda
• Background on Property Tax Levies
• Legislative Changes that Affect the 2024 Levy
• Information on School Funding
• Budget 8

• Proposed Tax Levy for Taxes Payable in 2024

• Estimated Impact on Taxpayers
• Minnesota Property Tax Refunds
• Public Comments
 9

Background on Property Tax Levies

 Property Tax Background
• Every owner of taxable property pays property taxes to various “taxing
jurisdictions” (county, city/township, school district, special districts) in which
property is located

10
• Each taxing jurisdiction sets own tax levy, often based on limits in state law

• County sends bills, collects taxes from property owners & distributes funds
back to other taxing jurisdictions
 MN Legislature Must Set Funding for
Minnesota Public Schools
Minnesota Constitution ARTICLE XIII
MISCELLANEOUS SUBJECTS
Section 1
11
“UNIFORM SYSTEM OF PUBLIC SCHOOLS. The stability of a republican form of
government depending mainly upon the intelligence of the people, it is the duty
of the legislature to establish a general and uniform system of public schools.
The legislature shall make such provisions by taxation or otherwise as will
secure a thorough and efficient system of public schools throughout the state.”
 State Sets:
• Formulas which determine revenue
◦ Most revenue based on specified amounts per pupil

• Tax policy for local schools

Funding is
• Maximum authorized property tax levy
Highly ◦ Districts can levy less, but not more than amount
12

Regulated authorized by state, unless approved by voters in

November

State also authorizes school board to submit

referendums for operating & capital needs to
voters for approval
 Complexity of MN School District
Property Tax System
• Comprised of 39 pages of levy calculations
• Contains over 50 different revenue (aid & levy) categories
• Calculated on two property tax bases
◦ Referendum Market Value (RMV) 13
◦ Net Tax Capacity (NTC)
• Contains 4 different funds
◦ General Fund, Community Service, Debt Service, OPEB Debt Service
• Separated into two categories on property tax statements
◦ Voter Approved Levies
◦ Other Local Levies
 Levy Timeline Overview
• Proposed levy certified in September 2023

• Final levy certified in December 2023

14

• Payable 2024 means collected from taxpayers in calendar year 2024

◦ 1st half due May 15th, 2024
◦ 2nd half due October 15th, 2024

• Provides revenue for the district in Fiscal Year 2024-25

◦ July 2024 – June 2025
 Levy Timeline Overview

September 8 September 25 Mid-November December 18 December 18

15

MDE prepared &

distributed first
draft of levy limit County mailed Following hearing,
report setting School Board “Proposed Property Public hearing on School Board will
maximum approved proposed Tax Statements” to proposed levy at certify final levy
authorized levy levy amounts all property owners regular meeting amounts
 Difference in Levy Cycles
School Districts Cities, Counties
& Townships

• Budget year begins July 1st • Budget year begins January 1st 16

• 2024 taxes provide revenue for • 2024 taxes provide revenue for 2024
2024-25 fiscal year calendar year budget
 Difference in Levy Cycles
2023 2024 2025

Aug

Aug

Aug
May

May

May
Nov

Nov

Nov
Mar
Apr

Dec

Mar
Apr

Dec

Mar
Apr

Dec
Oct

Oct

Oct
Feb

Sep

Feb

Sep

Feb

Sep
Jun

Jun

Jun
Jan

Jan

Jan
Jul

Jul

Jul
Legislation

City, Township, County 17

Tax Levy Decision

Collection of Levy

Budget Year

School District

Tax Levy Decision

Collection of Levy

Budget Year
 Payable 2024 Property Tax Levy

Levy Calculation Levy Comparisons

18

Notable Levy Changes Impact on Taxpayers

 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax
Step 2
Process
__________ Step 3
Some levy categories, tax
rates & levy amounts are 19

based on referendum market

value, and some are based on Step 4
tax capacity.

Of these six steps, school Step 5

districts have control over
only one of the steps.

Step 6
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
Residential & Agricultural Homestead
20
• house, garage & 1 acre

• 1.00% up to $500,000
Step 4
• 1.25% over $500,000

Commercial

• 1.50% up to $150,000
Step 5
• 2.00% over $150,000

Agricultural Land & Buildings

• 0.50% up to $1,900,000

• 1.00% over $1,900,000

Step 6
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
County Auditor calculates tax capacity for each parcel of
property, as well as total tax capacity for each school
district.
A property’s tax capacity is
determined by multiplying the 21

property’s market value by

the relevant class rate. Class Step 4
rates are set by statute, vary
by property type, and are
uniform statewide.
Step 5

Step 6
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
County Auditor calculates tax capacity for each parcel of
property, as well as total tax capacity for each school
district.
Each category has its own
unique set of calculations. 22

Many formulas are based on a Minnesota Department of Education calculates detailed

per-pupil basis, while others Step 4 levy limits for each school district, based on formulas
approved by Legislature.
are more specific.
Operating Capital

• Based on age and square footage of Step 5

district buildings

Transportation Sparsity

• Based on attendance area and

number of square miles per Step 6
resident student
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
County Auditor calculates tax capacity for each parcel of
property, as well as total tax capacity for each school
Equity Revenue district.
23
• Based on a district’s per-pupil
revenue (basic formula, Minnesota Department of Education calculates detailed
referendum, transition, up to $300 Step 4 levy limits for each school district, based on formulas
LOR) compared to the state approved by Legislature.
average
◦ APS = $8,191.12

◦ Rural 5 th Percentile = $7,581.00

Step 5
◦ Rural 95 th Percentile = $9,691.97

Career & Technical

• 35% of eligible expenditures

Step 6
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
County Auditor calculates tax capacity for each parcel of
property, as well as total tax capacity for each school
district.
24

Minnesota Department of Education calculates detailed

Step 4 levy limits for each school district, based on formulas
approved by Legislature.

School Board adopts a proposed levy in September. After a

Step 5 public hearing, board adopts a final levy in December. Final
levy cannot be more than proposed levy, except for
amounts approved by voters.

Step 6
 City or County Assessor (Douglas & Pope County)
Step 1 determines estimated market value and property
School District classification for each parcel of property.

Property Tax Legislature sets formulas for tax capacity and school district
Step 2
Process levy limits.

__________ Step 3
County Auditor calculates tax capacity for each parcel of
property, as well as total tax capacity for each school
district.
25

Minnesota Department of Education calculates detailed

Step 4 levy limits for each school district, based on formulas
approved by Legislature.

School Board adopts a proposed levy in September. After a

Step 5 public hearing, board adopts a final levy in December. Final
levy cannot be more than proposed levy, except for
amounts approved by voters.

County Auditor divides final levy by district’s total tax

Step 6 capacity to determine tax rate needed to raise levy amount.
Sample of parcel specific notice mailed to every property
owner between November 11 & November 24 1
2
3
4

Contents: 5

• Estimated Market Value of property (1)

• Change in property value has a large impact

• Homestead Exclusion (2)

• Value excluded or deferred from taxation

26
• Taxable Market Value (3)

• Property Classification (4)

• Different tax capacity calculations for different classifications

• School Building Bond Ag Credit (5)
• Proposed property taxes compared to last year (6)
8
• By taxing jurisdiction
• By voter approved & other for school district (7) 7

• 2 separate line items, but no total

• Time & place of public meetings (8) 6
 27

Legislative Changes that

Affect the 2024 Levy
 Legislative Changes that Affect the 2024 Levy
• The 2023 Legislature addressed the next biennium for formula allowances for
the 2023-24 and 2024-25 fiscal years

• The 2023 Payable 2024 levy reflects the current General Education Basic 28
formula for the 2023-24 fiscal year of $7,138.00 per Adjusted Pupil Unit

• At this time, no legislative changes affect the 2023 Payable 2024 levy
 29

Information on School Funding

 Basic General Education Formula Lags Inflation
• Since 2002-03, state General Education Revenue formula has not kept pace
with inflation

• For Fiscal Year 2023-24, an increase of 4.00% or $275 over previous year was
approved, equal to $7,138 per pupil 30

• For Fiscal Year 2024-25, an increase of 2.00% or $143 over previous year was
approved, equal to $7,281 per pupil

Per-pupil allowance for Fiscal Year 2024-25 of $7,281 would need to increase by
another $1,355 (18.6%) to have kept pace with inflation since 2002-03, resulting
in an allowance of $8,636
 General Education Formula Allowance (2003-2025)
$9,000
$8,636
$8,500 Per pupil funding
$8,419
will trail inflation by:
$8,171
$8,000 $1,281 in FY'24 &
$7,690
$1,355 in FY'25
$7,500
$7,175
$6,906
$7,281 31
$7,000
$6,617 $7,138
$6,309 $6,454
$6,863
$6,500
$6,030
$6,728
$5,855 $6,567
$6,000 $6,312
$5,568 General Education
$6,067
$5,228 Formula Allowance
$5,500 $5,831
$4,966
$5,530 $5,638 Inflation Rate
$5,530
$5,000 $5,368
$4,966 $4,966
$4,500
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
 32

Budget

Budget
Information
__________
Because approval of school
district budget lags certification
of tax levy by six months, state
requires only current year budget
information be presented at this
hearing. A preliminary Fiscal Year
2024-25 budget will be adopted
by the School Board in June 2024.
School district budgets are divided into
separate funds, based on purposes of
revenue, as required by law.
Our District’s Funds:
• General (includes Student Activity Funds)
• Food Service
33
• Community Service
• Building Construction
• Debt Service
• Internal Service
• OPEB* Debt Service
*Other Post-Employment Benefits
 District Revenues & Expenditures
Actual for FY 2022-23 & Budget for FY 2023-24

Beginning FY 2022-23 Actual Ending FY 2023-24 Budget Projected

Fund Balance Revenues & Expenditures & Fund Balance Revenues & Expenditures & Fund Balance

FUND 7/1/2022 Transfers In Transfers Out 6/30/2023 Transfers In Transfers Out 6/30/2024

General (Restricted) * $ 545,552.67 $ 4,635,176.34 $ 4,671,927.56 $ 508,801.45 $ 5,889,591.14 $ 5,775,091.14 $ 623,301.45

General (Other) 7,501,907.00 53,678,592.64 57,487,121.34 3,693,378.30 57,112,187.42 55,683,581.09 5,121,984.63

34
Food Service 1,027,526.34 3,603,312.46 3,690,006.12 940,832.68 3,748,475.85 3,962,598.12 726,710.41

Community Service 1,282,947.07 3,566,948.75 3,759,115.00 1,090,780.82 3,199,655.05 3,604,126.64 686,309.23

Building Construction 3,681,383.03 27,827.92 3,709,210.95 - - - -

Debt Service 32,078.50 6,509,985.88 6,178,793.76 363,270.62 6,433,744.29 6,136,656.26 660,358.65

Internal Service 47,732.15 364,685.55 422,034.73 (9,617.03) 470,280.00 457,057.32 3,605.65

OPEB Debt Service (8,059.12) 742,145.34 703,927.50 30,158.72 725,315.36 691,977.50 63,496.58

TOTALS $ 14,111,067.64 $ 73,128,674.88 $ 80,622,136.96 $ 6,617,605.56 $ 77,579,249.11 $ 76,311,088.07 $ 7,885,766.60

* includes Student Activity Funds

 Revenue
- All Funds - 35

2023-24 Budget
$77,579,249.11
General Fund
Revenue 36

2023-24 Budget
$63,001,778.56
General Fund
Expenditures
- by Object - 37

2023-24 Budget
$61,458,672.23
General Fund
Expenditures
- by Program - 38

2023-24 Budget
$61,458,672.23
 Equalization Aid
• Based on Referendum Market Value (RMV) per Resident Student

• Higher RMV per Resident Student equates to less equalization aid and more
responsibility to local levy 39

• Our district calculates to be a very property-rich district

◦ This leads to limited ability to receive equalization aid and mandates the balance to be
shifted heavily toward local levy
 Referendum Market Value per Resident Pupil Unit
(Alphabetical)

$1,200,000
FY ‘25 State Median:
$601,020
$1,000,000

$995,307

$908,083
$903,511
$800,000

$829,949

$784,050

$771,197

$707,870

$674,015
$600,000

$637,701
40

$605,961

$586,023

$562,596
$527,712
$518,911
$400,000

$418,631
$200,000

$0
 Referendum Market Value per Resident Pupil Unit
(Highest to Lowest)

$1,200,000
FY ‘25 State Median:
$601,020
$1,000,000

$995,307

$908,083

$903,511
$800,000

$829,949

$784,050

$771,197

$707,870

$674,015
$600,000

$637,701
41

$605,961

$586,023

$562,596

$527,712

$518,911
$400,000

$418,631
$200,000

$0
 General Education Aid per ADM (2022-23)
(Alphabetical)
$10,500

$10,000

$10,144
$9,500

$9,000

$9,134

$8,971

$8,934

$8,915
$8,847

$8,810
42

$8,740
$8,500

$8,599

$8,536

$8,485
$8,477

$8,457
$8,368

$8,000

$8,190
$7,500

$7,000
 General Education Aid per ADM (2022-23)
(Lowest to Highest)

$10,500

$10,000

$10,144
$9,500

$9,000

$9,134
$8,971
$8,934
$8,915
43

$8,847
$8,810
$8,740
$8,500

$8,599
$8,536
$8,485
$8,477
$8,457
$8,368

$8,000
$8,190

$7,500

$7,000
 Equalization Aid
AID LEVY
$ % $ % TOTAL
Operating Capital 415,464.89 44.4% 520,636.59 55.6% 936,101.48 44

Local Optional 151,660.10 4.7% 3,108,313.02 95.3% 3,259,973.12

Equity - 0.0% 605,587.61 100.0% 605,587.61
Transition - 0.0% 66,647.15 100.0% 66,647.15
Referendum - 0.0% 2,622,688.60 100.0% 2,622,688.60

TOTAL 567,124.99 7.6% 6,923,872.97 92.4% 7,490,997.96

Equalization Aid
Aid/Levy Split for Comparable Districts
45
Based on 2022-23 Revenue
 46

Proposed Tax Levy for Taxes Payable in 2024

 Overview of Proposed Tax Levy for
Taxes Payable in 2024
• Proposed Payable 2024 tax levy is an increase from 2023 of $577,392.98

• Represents a 3.25% increase

47

• Changes by levy category and reasons for major increases & decreases in levy
are included on following slides
 Levy Category 2023 Payable 2024 2022 Payable 2023 Change from Prior Year
Proposed Levy Final Levy $ Change % Change
GENERAL
Operating Capital $ 666,414.37 $ 560,222.88 $ 106,191.49
Equity Allowance 623,894.03 614,374.38 9,519.65
Local Optional Revenue 3,259,013.60 3,212,211.86 46,801.74
Reemployment Insurance 18,090.73 70,569.49 (52,478.76)

Comparison of Referendum Revenue

Safe Schools
Lease
2,678,333.00
162,050.40
1,015,444.44
2,671,193.00
161,618.40
951,752.80
7,140.00
432.00
63,691.64

Actual Tax Levy Transition Revenue

Career & Technical
68,061.16
228,932.20
67,879.72
215,655.18
181.44
13,277.02

Payable in 2023 to Long-Term Facilities Maintenance

Alternative Teacher Compensation
1,270,680.91
374,835.37
1,267,293.48
379,098.34
3,387.43
(4,262.97)

Proposed Tax Levy

Facility & Equipment Bond (690,488.00) (692,063.00) 1,575.00
Other Post-Employment Benefits 779,655.00 804,472.00 (24,817.00)
Other & Previous Years Adjustments (144.11) (316,525.32) 316,381.21 48

Payable in 2024 TOTAL GENERAL FUND

COMMUNITY SERVICE
$ 10,454,773.10 $ 9,967,753.21 $ 487,019.89 4.89%

Basic Levy $ 260,390.32 $ 230,961.40 $ 29,428.92

Early Childhood Family Educ. 143,997.44 149,235.52 (5,238.08)
Home Visit 4,302.99 3,644.35 658.64
School Age Care 250,000.00 250,000.00 -
Other & Previous Years Adjustments 23,613.48 1,635.94 21,977.54
TOTAL COMMUNITY SERVICE FUND $ 682,304.23 $ 635,477.21 $ 46,827.02 7.37%
DEBT SERVICE
Basic Levy $ 5,640,600.00 $ 5,608,050.00 $ 32,550.00
Alternative / Capital Facilities Bonds 690,488.00 692,063.00 (1,575.00)
Long-Term Facilities Maintenance 129,728.00 132,878.00 (3,150.00)
Other Post-Employment Benefits 723,584.00 725,789.00 (2,205.00)
Other & Previous Years Adjustments 17,641.81 (284.26) 17,926.07
TOTAL DEBT SERVICE FUND $ 7,202,041.81 $ 7,158,495.74 $ 43,546.07 0.61%

TOTAL - ALL FUNDS $ 18,339,119.14 $ 17,761,726.16 $ 577,392.98 3.25%

 Overview of Proposed Tax Levy for
Taxes Payable in 2024
Proposed Tax Levy Actual Tax Levy
Payable in 2024 Payable in 2023 % Change
By Truth in Taxation Category
Voter Approved Levies $ 8,316,142.06 $ 8,164,673.43 1.86% 49

Other Local Levies 10,022,977.08 9,597,052.73 4.44%

TOTAL $ 18,339,119.14 $ 17,761,726.16 3.25%

By Tax Base
Referendum Market Value $ 6,594,990.73 $ 6,284,681.03 4.94%
Net Tax Capacity 11,744,128.41 11,477,045.13 2.33%
TOTAL $ 18,339,119.14 $ 17,761,726.16 3.25%
 Payable 2024 Property Tax Levy

Levy Calculation Levy Comparisons

50

Notable Levy Changes Impact on Taxpayers

Explanation of Levy Changes from Payable 2023
Category: General Fund – Operating Capital

Change: +$106,191.49 51

District receives revenue (aid & levy) for operating capital

Use of Funds: expenditures. Formula based on age and square footage of
buildings and pupil count. Split based on equalization formula.

Total operating capital revenue increased by only $11,191.96.

Reason for Change:
Aid split decreased $94,999.53.
Explanation of Levy Changes from Payable 2023
Category: General Fund – Lease

Change: +$63,691.64 52

Lease costs for educational, administrative and athletic spaces, as

Use of Funds:
well as principal & interest payments of COPs.

Increase is attributed to the debt service payments for COPs

Reason for Change:
(DMS & WES additions).
Explanation of Levy Changes from Payable 2023
Category: Community Service Fund – Basic Levy

Change: +$29,428.92 53

Use of Funds: Community Service Programming.

Reason for Change: Increase from $5.42 * district population to $6.35.

Explanation of Levy Changes from Payable 2023
Category: Debt Service Fund – Basic Levy

Change: +$32,550.00 54

Use of Funds: Principal & interest payments on existing bonds.

Reason for Change: Based on debt amortization schedules.

Explanation of Levy Changes from Payable 2023
Category: All Funds – Prior Year Adjustments

Change: +$356,284.82 55

Use of Funds: Various

Initial levies are based on estimates. In later years, amounts are

Reason for Change:
updated, and levies are retroactively adjusted.
Explanation of Levy Changes from Payable 2023
Category: All Funds & All Other Categories Combined

56

Change: ($10,753.89)

Use of Funds: Various

Explanation of Levy Changes from Preliminary

Category: General Fund – OPEB Previous Year Adjustments

57

Change: ($60,194.97) Resulted in 3.25% increase instead of 3.59%

 4-Year Total
Levy Change
Comparable 14 Districts
58
 Property Valuation Historical Data
Market Value Referendum Market Value Net Tax Capacity Adjusted Net Tax Capacity Sales Ratio
% Change % Change % Change % Change % Change
$ $ $ $ %
Year District State District State District State District State District State
2013 3,637,667,700 5.81% 2,655,492,300 0.91% 38,769,004 5.11% 41,090,639 7.53% 94.3%
2014 3,763,409,632 3.46% 8.59% 2,710,522,500 2.07% 6.61% 39,991,713 3.15% 7.91% 42,614,036 3.71% 10.70% 93.9% -0.42% -0.43%
59
2015 3,932,088,047 4.48% 3.10% 2,879,704,600 6.24% 5.11% 42,001,137 5.02% 3.73% 43,439,430 1.94% 2.50% 96.7% 2.98% 1.79%
2016 4,078,046,943 3.71% 4.02% 3,017,288,900 4.78% 5.25% 43,857,177 4.42% 4.31% 46,164,356 6.27% -0.93% 95.0% -1.76% 0.74%
2017 4,232,823,600 3.80% 4.13% 3,142,174,900 4.14% 6.67% 45,551,934 3.86% 4.82% 48,570,074 5.21% 11.40% 93.8% -1.26% -0.33%
2018 4,440,238,943 4.90% 5.40% 3,307,638,300 5.27% 6.61% 47,788,964 4.91% 6.33% 50,368,732 3.70% 5.71% 94.9% 1.17% 0.23%
2019 4,636,426,911 4.42% 5.80% 3,473,959,000 5.03% 6.50% 50,127,522 4.89% 5.82% 53,191,125 5.60% 6.35% 94.2% -0.74% -1.14%
2020 4,856,868,680 4.75% -0.23% 3,653,763,600 5.18% -0.13% 52,465,810 4.66% 4.37% 56,170,023 5.60% 4.27% 93.4% -0.85% -0.36%
2021 5,185,756,586 6.77% 1.12% 3,913,949,200 7.12% 5.77% 55,992,416 6.72% 1.75% 60,420,952 7.57% 1.71% 92.6% -0.86% 0.39%
2022 5,991,008,696 15.53% 4.39% 4,510,133,700 15.23% 4.89% 64,965,943 16.03% 4.18% 71,900,933 19.00% 0.71% 89.0% -3.89% -1.06%
 Adjusted Net Tax Capacity Calculation
• Net Tax Capacity (NTC) = Total tax capacity of all properties in the district
based on their property classification

• District’s NTC (from 2022) = $64,965,943 60

• Sales Ratio = 89.0%

◦ Average of property sales (estimated market value = 89.0% of sales price)

• Unlimited Adjusted Net Tax Capacity = $72,962,843 (20.76% increase from 2021)
• Adjusted Net Tax Capacity = $71,900,933 (19.00% maximum)
Levy as Percentage of Adjusted Net Tax Capacity

• Payable 2024 Levy = $18,339,119.14 / ANTC of $71,900,933 = 25.5%

• State average = 42.0% (Payable 2024 estimated) 61

= 41.1% (Payable 2023 actual)

• Comparable district average = 34.1%

 Levy as Percentage of Adjusted Net Tax Capacity (vs State Average)
50% 40.8% 41.1% 42.0%
41.6% 41.0%
45%
39.3% 39.2% 39.9%
40%
31.0% 31.2% 31.1% 30.2% 32.3%
35%
30%
30.3% 32.5% 28.9% 29.4%
25%
29.1% 30.6% 25.5%
20% 26.8%
62
15%
17.4% 16.3%
15.8%
10%
14.4% 12.3%
5%
0%
01 Pay 02

02 Pay 03

03 Pay 04

04 Pay 05

05 Pay 06

06 Pay 07

07 Pay 08

08 Pay 09

09 Pay 10

10 Pay 11

11 Pay 12

12 Pay 13

13 Pay 14

14 Pay 15

15 Pay 16

16 Pay 17

17 Pay 18

18 Pay 19

19 Pay 20

20 Pay 21

21 Pay 22

22 Pay 23

23 Pay 24
District Levy State Average Linear (District Levy) Linear (State Average)
 Levy as Percentage of Adjusted Net Tax Capacity (Comparable Districts)
50.0%

49.0%
45.0%

47.0%
40.0%

42.4%

42.0%
42.0%
38.7%
35.0%

35.8%

34.1%
32.9%
30.0%

31.4%
28.7%
25.0%

27.1%
25.9%
25.5%

20.0% 63

22.5%
20.2%

15.0%
10.0%
5.0%
0.0%
 School Property Taxes - Payable 2023
Net Tax Capacity Per Pupil
$16,000

$15,955
$15,901
$14,000

$14,365
$14,050
$12,000

$12,673
$11,821
$11,105

$11,030
$10,000

$10,185
$9,443
$8,000

$8,659
$8,100

$7,758
64

$6,962
$6,000

$6,780
$6,371
$4,000

$2,000

$0
 65

Estimate Impact on Taxpayers

 Payable 2024 Property Tax Levy

Levy Calculation Levy Comparisons

66

Notable Levy Changes Impact on Taxpayers

 Factors Impacting Individual
Taxpayers’ School Taxes

• Changes in value of individual property

Many factors can cause • Changes in total value of all property within 67
property taxes for an District
individual property to • Increases or decreases in levy amounts
increase or decrease caused by changes in state funding formulas,
from year to year local needs & costs, voter-approved
referendums & other factors
 $250,000

Impact of Property Valuations

Two properties in the district

◦ Both houses are valued at $250,000
◦ Total property value of $500,000 68

Total levy of $1,000

◦ Each property will pay $500 of levy
◦ Equal to 0.20% of property value

$250,000
 $275,000

Impact of Property Valuations

Two properties in the district

◦ Orange house value increases 10% to $275,000
◦ Blue house value increases 25% to $312,500
69
◦ Total property value of $587,500

Total levy of $1,000

◦ School District will still generate the same
amount of levy even though values increased
◦ Orange house pays less ($468)
◦ Blue house pays more ($532)
$312,500
 Impact on Taxpayer
• Following charts show examples of changes in the School District portion of
property taxes only

• Amounts for 2024 are preliminary estimates based on data available from the 70
county (final amounts could change slightly)

• 4-year comparisons are shown based on no change to property value and a 33.0%
increase in property value for residential homes over the past four years
◦ Actual changes in value may be more or less than this for any parcel of property
◦ Intended to provide a fair representation of what happened to school district property taxes over
this period for typical properties
 Estimated Changes in
$250,000 Residential Homestead Property
$1,000
School Property Taxes
$900 2021-2024
$800

$700 Based on No Changes in Property Value

$600
Valuation growth (NTC & RMV) is outpacing
$500 the increase in the district’s levy, which 71
$873 means tax rates are lower for taxes payable
$400 $820 $764 2024 compared to payable 2023
$300
$702
$200

$100

$0
Payable 2021 Payable 2022 Payable 2023 Payable 2024
 $350,000 Residential Homestead Property
Estimated Changes in
School Property Taxes
$1,400
2021-2024
$1,200

$1,000
Based on No Changes in Property Value

$800 Valuation growth (NTC & RMV) is outpacing

the increase in the district’s levy, which 72
means tax rates are lower for taxes payable
$600 $1,251 $1,175 2024 compared to payable 2023
$1,096 $1,006
$400

$200

$0
Payable 2021 Payable 2022 Payable 2023 Payable 2024
 Estimated Changes in
$500,000 Commercial / Industrial Property
School Property Taxes
$3,000
2021-2024
$2,500
Based on No Changes in Property Value
$2,000
Valuation growth (NTC & RMV) is outpacing
the increase in the district’s levy, which 73
$1,500 means tax rates are lower for taxes payable
$2,633 $2,446 2024 compared to payable 2023
$1,000
$2,331 $2,125
$500

$0
Payable 2021 Payable 2022 Payable 2023 Payable 2024
 $5,000 Agricultural Homestead Property
Estimated Changes in
School Property Taxes
$5.00 2021-2024
$4.00 Based on No Changes in Property Value

Valuation growth (NTC & RMV) is outpacing

$3.00
the increase in the district’s levy, which 74
means tax rates are lower for taxes payable
2024 compared to payable 2023
$2.00

$3.16
$2.69 $2.69 $2.44
$1.00

$0.00
Payable 2021 Payable 2022 Payable 2023 Payable 2024
 Estimated Changes in School Property Taxes 2021-2024
Based on No Changes in Property Values
Actual Taxes Payable Estimated Change in Taxes
Amounts are based on school district taxes
Estimated Taxes from from
only and do not include taxes for Type of Property
Market Value 2021 2022 2023 Payable 2021 to 2023 to
city/township, county, state, or other taxing
jurisdictions. in 2024 2024 2024
$150,000 $495 $466 $432 $397 -$98 -$35
Estimates of taxes payable in 2024 are $250,000 $873 $820 $764 $702 -$171 -$62
preliminary, based on the best data Residential $300,000 $1,062 $998 $930 $854 -$208 -$76
available. Homestead $350,000 $1,251 $1,175 $1,096 $1,006 -$245 -$90
$500,000 $1,804 $1,693 $1,580 $1,450 -$354 -$130
For all examples of properties, taxes are $1,000,000 $3,852 $3,607 $3,381 $3,098 -$754 -$283
calculated based on no changes in $100,000 $458 $427 $404 $369 -$89 -$35
estimated market value from 2021 to 2024. Commercial / $500,000 $2,633 $2,446 $2,331 $2,125 -$508 -$206
Industrial $1,000,000 $5,412 $5,024 $4,794 $4,369 -$1,043 -$425
For agricultural property, estimates of taxes 75
$10,000,000 $55,437 $51,440 $49,132 $44,764 -$10,673 -$4,368
include impact of School Building Bond
Agricultural Credit. Average value per acre $5,000 $3.16 $2.69 $2.69 $2.44 -$0.72 -$0.25
Agricultural Homestead
is total estimated market value of all land $5,500 $3.47 $2.96 $2.95 $2.68 -$0.79 -$0.27
(average value per acre of land
and buildings, divided by total acres. and buildings)
$6,000 $3.79 $3.22 $3.22 $2.93 -$0.86 -$0.29
Homestead examples do not include value $6,500 $4.10 $3.50 $3.49 $3.17 -$0.93 -$0.32
of house, garage, and one acre, for which $5,000 $6.31 $5.38 $5.36 $4.87 -$1.44 -$0.49
tax impact will be same as on a residential Agricultural Non-Homestead
$5,500 $6.94 $5.92 $5.91 $5.37 -$1.57 -$0.54
(average value per acre of land
homestead property. This calculation does $6,000 $7.57 $6.46 $6.44 $5.85 -$1.72 -$0.59
and buildings)
not include impact of Agricultural $6,500 $8.21 $6.99 $6.98 $6.34 -$1.87 -$0.64
Homestead Credit, which reduces taxes on $100,000 $410 $383 $360 $330 -$80 -$30
each parcel of agricultural homestead Apartments & Residential Non-
$1,000,000 $4,095 $3,829 $3,602 $3,297 -$798 -$305
property by varying amounts. Homestead (2 or more units)
$10,000,000 $40,954 $38,288 $36,016 $32,970 -$7,984 -$3,046
$50,000 $98 $89 $88 $79 -$19 -$9
Seasonal Recreational $100,000 $195 $177 $177 $159 -$36 -$18
Residential $250,000 $488 $443 $442 $397 -$91 -$45
$500,000 $976 $886 $884 $794 -$182 -$90
 Estimated Changes in
$250,000 Residential Homestead Property
School Property Taxes
$800
2021-2024
$700

$600 Based on 33.0% Cumulative Changes in

Property Value
$500

$400 Calculated based on changes in market value

76

$702 of 6.0% from 2021 to 2022, 13.0% from 2022

$300 $639 $641 $682 to 2023 and 11.0% from 2023 to 2024.

$200

$100

$0
$188,032 $199,314 $225,225 $250,000
Payable 2021 Payable 2022 Payable 2023 Payable 2024
 Estimated Changes in
$350,000 Residential Homestead Property
School Property Taxes
$1,200
2021-2024
$1,000
Based on 33.0% Cumulative Changes in
$800 Property Value

$600
Calculated based on changes in market value
77

of 6.0% from 2021 to 2022, 13.0% from 2022

$923 $923 $981 $1,006 to 2023 and 11.0% from 2023 to 2024.
$400

$200

$0
$263,245 $279,040 $315,315 $350,000
Payable 2021 Payable 2022 Payable 2023 Payable 2024
78
 School Property Taxes - Payable 2023
Residential Homestead - Estimated Market Value of $253,205

$1,600

$1,400

$1,437
$1,200

$1,237

$1,229
$1,210
$1,000

$1,007
$988

$955
$943
$800 79

$788
$775

$768

$755
$717
$600

$677
$671
$584

$400

$200

$0
 School Property Taxes - Payable 2023
Residential Homestead - Estimated Market Value of $253,205

$1,600

$1,400

$1,437
$1,200

$1,237
$1,229
$1,210
$1,000

$1,007
$988
$955
$943
$800 80

$788
$775
$768
$755
$717
$600
$677
$671
$584

$400

$200

$0
 School Property Taxes - Payable 2023
Residential Homestead - Estimated Market Value of $253,205
$1,200

$1,099

$1,084
$1,000

$955
$944

$905
$800

$819
$775
$600
81

$581
$400

$200

$0
 School Property Taxes - Payable 2023
Commercial / Industrial Property - Estimated Market Value of $500,000

$4,500

$4,000

$3,918

$3,843
$3,839

$3,802
$3,500

$3,000

$3,238
$2,896

$2,841

$2,827
$2,500
82

$2,484
$2,391

$2,336
$2,331

$2,000

$2,177
$2,153

$2,140
$1,500
$1,716

$1,000

$500

$0
 School Property Taxes - Payable 2023
Commercial / Industrial Property - Estimated Market Value of $500,000

$4,500

$4,000

$3,918
$3,843
$3,839
$3,802
$3,500

$3,000

$3,238
$2,896
$2,841
$2,827
$2,500
83

$2,484
$2,391
$2,336
$2,331
$2,000

$2,177
$2,153
$2,140

$1,500
$1,716

$1,000

$500

$0
 School Property Taxes - Payable 2023
Commercial / Industrial Property - Estimated Market Value of $500,000

$3,500

$3,330
$3,000

$2,850

$2,827
$2,500

$2,494
$2,331

$2,326
$2,253
$2,000
84

$1,713
$1,500

$1,000

$500

$0
 School Property Taxes - Payable 2023
One Acre Agricultural Homestead - Estimated Market Value of $5,000

$4.00

$3.50

$3.68

$3.60

$3.51
$3.47

$3.37
$3.26
$3.00

$3.18
$2.96
$2.93
$2.91
$2.50 $2.68

$2.61
$2.53

$2.36

$2.33
$2.00 $1.93 85

$1.50

$1.00

$0.50

$0.00
 School Property Taxes - Payable 2023
One Acre Agricultural Homestead - Estimated Market Value of $5,000
$4.00

$3.50

$3.68
$3.60
$3.51
$3.47
$3.37
$3.26
$3.00

$3.18
$2.96
$2.93
$2.91
$2.50

$2.68
$2.61
$2.53
$2.36
$2.33
$2.00
86
$1.93

$1.50

$1.00

$0.50

$0.00
 School Property Taxes - Payable 2023
One Acre Agricultural Homestead - Estimated Market Value of $5,000

$3.50

$3.00

$3.18
$2.50

$2.68

$2.61
$2.56
$2.50
$2.00

$2.09
$2.02
87
$1.50

$1.00

$0.74
$0.50

$0.00
 88

Minnesota Property Tax Refunds

 State Property Tax Refunds & Deferral
Homestead Credit Refund

• To qualify, you must:

89
o Own and occupy a home
o Have your home classified as a homestead with your county
o Pay or arrange to pay your property taxes

• There are two types of Homestead Credit Refunds:

o A regular refund based on your income and property taxes
o A special refund based on how much your property tax increased
o You may qualify for one or both of these refunds

84
 State Property Tax Refunds & Deferral
Regular Homestead Credit Refund

• Requirements to claim the refund: 90

o You owned and lived in your home on January 2, 2024
o Your household income for 2023 was less than $135,410

85
 State Property Tax Refunds & Deferral
Special Homestead Credit Refund

• Requirements to claim the refund: 91

o You owned and lived in the same home on January 2, 2023 and on January 2, 2024
o Your home’s net property tax increased by more than 12% from 2023 to 2024
o The net property tax increase was at least $100
o The increase was not because of improvements you made to the property

86
 State Property Tax Refunds & Deferral
Renter’s Property Tax Refund

• To qualify, all of these must be true:

92
o You have a valid Social Security Number or Individual Taxpayer Identification Number
o You are a Minnesota resident or spent at least 183 days in the state
o You lived in and paid rent on a Minnesota building where the owner was assessed property tax or made
payments in lieu of property tax
o Your household income for 2023 was less than $73,270
o You cannot be claimed as a dependent on someone else’s tax return

87
 Minnesota Property Tax Refunds
For assistance with details, forms and instructions contact:

• Your tax professional

93

• Minnesota Department of Revenue

(651) 296-4444
www.taxes.state.mn.us
 Next Steps

94
Board will accept Board will certify
public comments on 2023 property tax
proposed levy levy