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 Tax Base and Levy Trends 5

School District Levy Limitation and Certification Calendar 7

Dates of Importance for the November 8, 2016 Referendum Elections 12

Truth in Taxation 13

Department of Education Website 14

Data Collection Systems 15

ADM/LEP Reporting System 15

View Estimated ADM and EL Counts 16

Sum School Adjusted ADM and Authorized Submission 17

Long-Term Facilities Maintenance / Health and Safety Reporting System 16

Levy Information System 21

Health Benefits and OPEB 22

Pupil Transportation 23

Elementary and Secondary Sparsity 24

Building/Land Lease 25

Debt Service 27

General and Community Services 29

Levy Information Status 32

Spreadsheet Data on MDE Website 33

Referendum Phaseout Details Through Calendar Year 2015 Elections 34

Referendum Cap Inflation Adjustment 35

Tax Replacement Aid Spreadsheet 36

Sparsity Revenue: 2014-15 Spreadsheet 37

Building Age Report: 2014-15 38


Table of Contents (continued)

Minnesota Funding Reports 39

Aid Entitlement Reports 40

FY 2017 General Education Aid Report 41

FY 2015 General Education Aid Report 44

FY 2017 Compensatory Revenue Report 45

Q Comp Enrollment Calculation…… 46

14-15 Career Technical Education Final Levy Adjustment Update…… 47

FY 2017 Integration Revenue Report…… 48

FY 2017 Capital Health and Safety Aid Report 49

Abatement Aid Report 50

Levy Limit and Certification Reports 51

Adjustment to School Tax Report 52

Data Submitted by County Auditors on Paper Forms 53

School Tax Report, 2013 Payable 2014 54

School Tax Abatement Report, Calendar Year 2015 55

School Tax Abatement Six-Month Supplement Report 56

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 . Questions on specific levy components should be directed as follows:

Program Area / Contact / Phone / Email
ADM and EL Projections / Jeanne Krile / 651-582-8637 /
Career and Technical Education Levy / Jan Carlson / 651-582-8342 /
General Education Revenue, Referendum Levies / Michael Schwartz
Jon VanOeveren / 651-582-8399
651-582-8375 /

Alternative Teacher Compensation Revenue / David Lobejko / 651-582-8383 /
Miscellaneous Levies including: Reemployment, Safe Schools, Judgment, Health Benefits, Reorganization Retirement/Severance, Economic Dev Abate, and Admin Services / David Lobejko / 651-582-8383 /
Non-public Transportation Revenue / Greg Sogaard / 651-582-8858 /
Community Education, ECFE, Home Visiting, School-Age Care and Integration Revenues / Jan Carlson / 651-582-8342 /
Other Postemployment Benefits (OPEB) / Jan Carlson / 651-582-8342 /
Long-Term Facilities Maintenance Revenue, Capital Expenditure and Debt Service Levies / Lonn Moe / 651-582-8569 /
Building/ Land Lease Levy, Swimming Pool Levy, Ice Arena Levy, Consolidation Transition Revenue, Reorganization Operating Debt, and Taconite Adjustments / Bill Kiesow / 651-582-8801 /

CLASS RATES USED IN COMPUTING NET TAX CAPACITY

Property Tax Class / Tax Rate
Pay 2016 / Tax Rate
Pay 2017 / Subject to
State Levy?
Residential Homestead (1a) & Migrant Housing (1d)
Up to $500,000
Over $500,000
Disabled homestead up to $50,000 (1b) / 1.00%
1.25%
0.45% / 1.00%
1.25%
0.45% / No
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 /
1.00%
1.25%
1.25%
1.25%
.75%
.25% /
1.00%
1.25%
1.25%
1.25%
.75%
.25% / No
Commercial-Industrial-Public Utility (3a)
Up to $150,000
Over $150,000
Other public utility machinery
Electric generating machinery /
1.50%
2.00%
2.00%
2.00% / 1.50%
2.00%
2.00%
2.00% / Yes
Yes
Yes
No
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) / 0.50%
1.00%
1.25% / 0.50%
1.00%
1.25% / No
No
Yes
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 / 1.00%
1.25%
1.00%
1.25% / 1.00%
1.25%
1.00%
1.25% / Yes1
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)) / 1.25%
1.50%
1.00%
1.25%
1.25%
1.50%
1.25% / 1.25%
1.50%
1.00%
1.25%
1.25%
1.50%
1.25% / No
Agricultural Homestead (2a)
House, Garage and One Acre
Up to $500,000
Over $500,000
Land and Buildings
Up to $2,050,000 (Up to $2,140,000 for Pay16)
Over $2,050,000 (Over $2,140,000 for Pay16)
Agricultural Non-Homestead and Timberland (2b) / 1.00%
1.25%
0.50%
1.00%
1.00% / 1.00%
1.25%
0.50%
1.00%
1.00% / No
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.

SCHOOL DISTRICT TAX BASE AND LEVY TRENDS

STATE TOTALS / AMOUNT / PERCENT CHANGE
Market Value (in billions)
2004 / 411.7 / 13.4%
2005 / 464.0 / 12.7%
2006 / 518.9 / 11.8%
2007 / 561.5 / 8.2%
2008 / 581.0 / 3.5%
2009 / 582.1 / 0.2%
2010* / 568.1 / -2.4%
2010** / 531.1 / -8.8%
2011** / 522.0 / -1.7%
2012** / 515.3 / -1.3%
2013** / 545.5 / 5.9%
2014** / 592.9 / 8.7%
2015** / 610.6 / 3.0%
Referendum Market Value (does not reflect exclusion)(in billions)
2004 (b) / 358.4 / 13.2%
2005 (b) / 402.1 / 12.2%
2006 (b) / 446.4 / 11.0%
2007 (b) / 478.9 / 7.3%
2008 (b) / 486.7 / 1.6%
2009 (b) / 471.4 / -3.1%
2010 / 446.5 / -5.3%
2011 / 434.9 / -2.6%
2012 / 417.7 / -4.0%
2013 / 421.4 / 0.9%
2014 / 449.8 / 6.7%
2015 / 472.4 / 5.0%
Net Tax Capacity
2004 (a) / 4,410,081,320 / 12.9%
2005 (a) / 4,953,502,699 / 12.3%
2006 (a) / 5,540,161,802 / 11.9%
2007 (a) / 5,984,630,653 / 8.0%
2008 (a) / 6,212,181,699 / 3.8%
2009 (a) / 6,241,705,585 / 0.5%
2010* / 6,019,613,216 / -3.6%
2010** / 5,735,119,057 / -8.1% (09 to 10)
2011** / 5,646,621,985 / -1.5%
2012** / 5,579,057,073 / -1.2%
2013** / 5,864,371,627 / 5.1%
2014** / 6,328,191,979 / 7.9%
2015** / 6,564,385,498 / 3.7%

(a) Excludes JOBZ valuation

* Before Market Value Exclusion

** After Market Value Exclusion

SCHOOL DISTRICT TAX BASE AND LEVY TRENDS (continued)

Average Sales Ratio
2004 / 81.50% / 0.7%
2005 / 82.80% / 1.6%
2006 / 84.50% / 2.1%
2007 / 88.30% / 4.5%
2008 / 91.30% / 3.4%
2009 / 94.90% / 3.9%
2010 / 98.70% / 4.0%
2011 / 98.80% / 0.1%
2012 / 98.10% / -0.7%
2013 / 93.70% / -4.5%
2014 / 93.30% / -0.4%
2015 / 94.97% / 1.8%
Adjusted Net Tax Capacity
2004 (a) / 5,386,446,668 / 11.9%
2005 (a) / 5,954,887,534 / 10.6%
2006 (a) / 6,554,390,846 / 10.1%
2007 (a) / 6,775,729,243 / 3.4%
2008 (a) / 6,800,159,077 / 0.4%
2009 (a) / 6,555,622,984 / -3.6%
2010 (a) / 5,806,925,965 / -11.4%
2011 (a) / 5,709,940,559 / -1.7%
2012 (a) / 5,664,825,992 / -0.8%
2013 (a) / 6,091,347,874 / 7.5%
2014 (a) / 6,743,123,307 / 10.7%
2015 (a) / 6,911,737,976 / 2.5%
Total Certified Levy Before Credits
2004 Pay 2005 / 1,440,731,100 / 6.1%
2005 Pay 2006 / 1,675,412,400 / 16.3%
2006 Pay 2007 / 1,836,768,800 / 9.6%
2007 Pay 2008 / 1,977,862,300 / 7.7%
2008 Pay 2009 / 2,126,937,400 / 7.5%
2009 Pay 2010 / 2,196,356,600 / 3.3%
2010 Pay 2011 / 2,240,361,600 / 2.0%
2011 Pay 2012 / 2,279,658,400 / 1.8%
2012 Pay 2013 / 2,316,384,400 / 1.6%
2013 Pay 2014 / 2,356,123,300 / 1.7%
2014 Pay 2015 / 2,469,286,500 / 4.8%
2015 Pay 2016 / 2,641,453,600 / 7.0%
2016 Pay 2017* / 2,697,207,700 / 2.1%
(*Estimate)

(a) Excludes JOBZ valuation

2

SCHOOL DISTRICT

LEVY LIMITATION AND CERTIFICATION CALENDAR

2016 Payable 2017 Levy

July 28, 2016

March 15, 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.
June 17, 2016 / Deadline for districts to submit Career and Technical estimated expenditures.
June 30, 2016 / 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 / Department of Revenue certifies final 2015 adjusted net tax capacity for each district before this date.
n/a / Deadline for board resolution adopting a population estimate for community education and/or adult basic education revenue.
n/a / Deadline to submit population estimated for community education and/or adult basic education revenue to the State Demographer.
n/a / Deadline for school districts to submit requests for a debt service loan.
n/a / 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.
July 15, 2016 / Deadline for county auditors to submit Six-Month Supplemental School Tax Abatement Report for current year to MDE, School Finance.
July 31, 2016 / Deadline for school districts to submit annual Long-Term Facilities Application - including school board certified revenue projection and expenditures, and statement of assurances.
August 15, 2016 / 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 / 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.
n/a / 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.
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 / Deadline for districts to submit Career and Technical actual expenditure changes for 15-16 for levy report.
n/a
August 29, 2016 / 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
August 31, 2016 / Last day a district may make changes via Health and Safety website.
September 8, 2016 / Deadline for MDE to certify levy limitations to school districts.
September 15, 2016 / Deadline for districts to request approval from the commissioner to retain debt excess.
September 16, 2016 / Deadline to adjust the 2016 Payable 2017 maximum costs for Health and Safety projects.
September 30, 2016 / Deadline to pass a board resolution to convert existing referendum authority from voter-approved to board-approved or to authorize new board-approved 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.*
October 7, 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.
October 28, 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). **
n/a / Deadline for school districts holding referendum elections on November 8 to provide copy of first class mail notice to county auditors and to MDE.**
November 1, 2016 / Annual Community Education Report is due.
November 2, 2016 / MDE, Division of School Finance, removes ECFE and home visiting levy authorities from levy report if ECFE Annual Reports are not received.
n/a / Last day districts may submit finalized information for OPEB bonding levy authority.
November 8, 2016 / General election day.
·  Referendum elections can be held only on this date (except by mail-in ballot). **
·  Minnesota Statues, section 126C.17, subdivision 9.
November 24, 2016 / 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.
After November 24, 2016, but before final levy is adopted / 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.
Five working days after December 20, 2016 (December 28, 2016) / 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.
December 30, 2016 / 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.
December 31, 2016 / Deadline for districts to submit FY 2015 actual building/land lease costs via Levy Information System.
January 7, 2017 / Deadline for school districts to notify MDE of final certified levies.
February 1, 2017 / Deadline for county auditors to submit School Tax Abatement Report for previous year to MDE.
April 1, 2017 / Deadline for county auditors to submit School Tax Report to MDE.

DATES OF IMPORTANCE FOR THE