6.1. SR 09-15-2014 �i
EOty lk Request for Action
River
To Item Number
Mayor and City Council 6.1
Agenda Section Meeting Date Prepared by
Presentations,Awards September 15, 2014 Cal Portner, City Administrator
and Recognition
Item Description Reviewed by
ISD #728 Superintendent Presentation
Reviewed by
Action Requested
Receive presentation form Dr. Mark Bezek, Superintendent of Elk River Area Schools.
Background/Discussion
Dr. Bezek has requested to provide a presentation to the City Council regarding the forthcoming school
district referendums.
Financial Impact
N/A
Attachments
■ N/A
p 0 W I R I I a
ATURE
ELK RIVER AREA SCHOOL
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AUDITORIUMS EA ' 1 A 1
VOTE NOVEMBER 41 2014
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We listened, now we're acting.
For several months the ISD 728 School Board and many district officials engaged in a series of dialogues with parents
and residents regarding their hopes, ideas and expectations.Additionally, more voices were heard thanks to a recent
district-wide survey that garnered nearly 2,000 responses. With those conversations and survey results firmly in mind,
ISD 728 will be moving forward with a bond and levy campaign.
When you go into the voting booth November 4, ISD 728 will have two questions on the ballot.
Question 1 * * * * Question 2
The first question would raise approximately$5.9 million, The second question will ask for approval for$98.03
$409.67 per student, in annual operating levy money. Here's million in new bonding money that would be used to:
how the School Board anticipates the money will be spent:
Build a third classroom wing at Rogers High
>> Open and operate newly constructed learning School to solve a significant over-crowding issue
spaces addressed in ballot question two, that demographics suggest will continue well into
— Cost:$2.3 million the future.
>> Hire teachers to reduce class size throughout » Build a new E-8 school in Otsego on land ISD
ISD 728. Cost:$1 million 728 already owns. Opening this school would also
alleviate over-capacity enrollments at: Otsego
» Improve technology, including: hardware, software, Elementary, Rogers Elementary, Hassan Elementary
technology staff and tech training far teachers. and Rogers Middle School.
A frequent point made by parents and residents
has been that they view up to date technology as >> Build auditoriums at Rogers High School and
essential. Cost:$2.6 million Zimmerman High School.
Make classroom and other facilities improvements and
upgrades at Zimmerman and Elk River high schools.
If voters do not approve Question 1 » Build additions at elementary schools in Rogers
THE PROJECTS IN QUESTION 2 and Zimmerman that would be dedicated to district
WILL NOT MOVE FORWARD early education programs.
even if voters approve Question 2 » Improve security at seven schools across the district.
Remove and replace portable classrooms with
permanent structures district-wide.
Tube www.elkriver.kl2.mn.us/"l)trongS,chools
ELK RIVER AREA SCHOOL DISTRICT
Our r n is torT 1 r, r O.W our diverse learners, to shape their futures,
to accomplish their dreams and to contribute positively to our r and global communities.
What's it going to cost?
If voters approve both questions, taxes on a $250,000 home would go up about$42 per year, or about
$3.50 per month.
All commercial, industrial and apartment building taxes would go down.According to ISD 728's financial
advisor, Ehlers and Associates, the relatively low additional tax impact, including commercial and industrial
tax reductions is the result of several factors including the fact that local taxpayers won't be paying the
bonds alone; the state of Minnesota will be paying about 40-41 cents on each dollar of bonding.
The state would also pay about a 30%of the$5.9 million ($409.67 per student) operating levy question.
What happens if both questions fail?
Considering student enrollment growth trends and current and future space needs, as well as comments from parents
and residents, the school board has determined new learning spaces must be built. The classroom addition at
Rogers Nigh School as well as additions at two of the three southern elementary schools would address urgent E-12
classroom space needs. These projects would cost $22 million and would be funded via lease levy, with NO state
funding assistance.
If both questions fail ... the tax increase on a $22 million lease levy (pay as you go)
is estimated by Ehlers and Associates to be $79 annually on a $250,000 home versus
$42 annually for the voter-approved bond and levy projects in Questions I and 2.
The School Board prefers the voter-approved bond/levy approach because it has less tax impact thanks to state
assistance.A voter-approved bond would also address more needs with a smaller tax increase.
What can you do?
Make informed decisions November 4. Learn the facts. Invite us to your neighborhood gathering or club meeting
to get the facts firsthand. Share the information with your family, friends and neighbors.
Continue to watch www.elkriver.k12.mn.usfStrongSchools, face book.comlisd728 and twitter.comlisd728
for on-going updates and more information all the way to election day.
Prepared and paid for by Independent School District 728,Elk River Area School District 728,815 Highway 10,Elk River,VIN 55330.This publication is not circulated on behalf of any candidate or ballot question.
1 ;trite 0 �t www.elkriver.kl2.mn.us/StrongSchools
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PRELIMINARY INFORMATION-FOR DISCUSSION ONLY 0//5 1
Elk River School District No. 728 June 25,2014
Analysis of Tax Impact for Potential Facility and Operating Referendum Scenarios
Scenario 2:$22.7 Mill.Lease Financing;Alt. Facilities All Non-Bond Levy; No Operating Referendum Increase
Increase in Net Decrease Increase in Net Change
Taxes for in Other Debt/ Operating in Tax
Lease Levy Facilities Levies Referendum Levies
$2,063,930 $0 $0 $2,063,930
Estimated Tax Rates Payable in 2015*
Market Value Rate 0.00000% 0.00000%
Tax Capacity Rate 3.35% 0.00% 3.35%
Estimated Estimated Change in
Type of Property Market Value Taxes Payable in 2015
$125,000 $33 $0 $0 $33
200,000 61 0 0 61
Residential 250,000 79 0 0 79
Homestead 300,000 97 0 0 97
350,000 115 0 0 115
400,000 134 0 0 134
450,000 151 0 0 151
600,000 209 0 0 209
750,000 272 0 0 272
$250,000 $142 $0 $0 $142
Commercial/ 500,000 310 0 0 310
Industrial + 800,000 511 0 0 511
1,000,000 645 0 0 645
2,000,000 1,315 0 0 1,315
$500,000 $209 $0 $0 $209
Apartments 1,250,000 523 0 0 523
2,000,000 837 0 0 837
* The figures in the table are based on school district taxes for the operating referendum,debt service,and other facility-related
purposes only(lease levy, health and safety, and alternative facilities),and do not include tax levies for other purposes. Tax
changes shown above are gross changes, not including the impact of the state Property Tax Refund("Circuit Breaker")
program.
+ For commercial-industrial property in Anoka and Hennepin Counties,the tax impact would be less than shown above,due to
the impact of the Twin Cities Fiscal Disparities Program.
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PRELII1f;NARY WFORMATlOW-FOR DISCUSSION ONLY q//.S-//C-)
Elk River School Distftt No. 728 dune 27,2014
Analysis of Tax Impact for potential (Facility and Operating Referendum Scenarios
Scenario 1:$98 Mill.Building Bonds;Alt.Facilities All Bonds Thru FY21; Increase in operating Ref.to$760
Increase in Net Decrease Increase in Net Change
Taxes for in Other Debt( Operating in Tax
New Bonds Facilities Levies Referendum Levies
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$1,565,554 -$5,149,536 $4,062,438 $478,456
Estimated Tax Rates Payable in 2015* n
Market Value Rate 0.07153% 0.07153%
Tax Capacity Rate 2.54% -8.36% -5.82%
Estimated Estimated Change in
L Type of property Market Value Taxes Payable in 2015
— $125,000 $25 -$83 $89 $31 --
200,000 46 -151 143 38
Residential 250,000 60 -197 179 42
Homestead 300,000 74 -242 215 47
350,000 87 -288 250 49
400,000 101 -333 286 54
450,000 114 -376 322 60
600,000 159 -522 429 66
750,000 206 -679 536 63
$250,000 $108 -$355 $179 -$68
Commercial/ 500,000 235 -773 358 -180
Industrial+ 800,000 388 -1,275 572 -315
1,000,000 489 -1,609 715 -405
2,000,000 997 -3,281 1,431 -853
$500,000 $159 -$522 $358 -$5
Apartments 1,250,000 397 -1,306 894 -15
2,000,000 635 -2,090 1,431 -24—J
The figures in the table are based on school district taxes for the operating referendum,debt service,and other facility-related
purposes only(lease levy, health and safety,and alternative facilities),and do not include tax levies for other purposes. Tax
changes shown above are gross changes,not including the impact of the state Property Tax Refund("Circuit Breaker")
program.
+ For commercial-industrial property in Anoka and Hennepin Counties,the tax impact would be less than shown above, due to
the impact of the Twin Cities Fiscal Disparities Program.
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