August 23, 2007

FY 2007/2008 Tax Levy

• Special Administrative Board of the Transitional School District of the City of St. Louis, as a political subdivision, is authorized to set tax levies

• Public notice must be posted one week prior to public hearing

• Tax levies are set annually

• Proposed tax rates must be submitted to the State Auditor by Sept 1st (certification)

FY 2007/2008 Tax Levy

Points of interest• This was the year for reassessments• Increase in real estate (25% residential,

19% commercial ) • 5% decrease in personal property

(4th straight year for declines)• There was also a $66m ( 87%) increase

in TIF assessments ($76m to $142m)

FY 2007/2008 Tax Levy

Points of interest (contin)

• Anticipated increase in protested taxes

• Increase in foreclosed property

• Last operating levy increase was 1991

FY 2006/2007 Tax Levy

The tax levy should be apportioned as follows:

$0.0000 Teachers Fund $3.1322 Incidental Fund $ .0000 Capital Projects Fund$ .6211 Debt Service Fund

 $3.7533* Total per each $100 of assessed valuation

* As reviewed by State Auditor’s office

FY 2007/2008 Tax Levy

FY 2007/2008 Tax Levy

• Prior year tax rate:

$0.0000 Teachers

$3.3982 Incidental

$0.0000 Capital

$3.3982 Operating

$0.6211 Debt

$4.0193Total rate

• Proposed tax rate:

$0.0000 Teachers

$3.1322 Incidental

$0.0000 Capital

$3.1322 Operating

$0.6211 Debt

$3.7533 Total rate

($0.2660)

Why is there a decrease in the tax rates when assessed values have increased significantly this year?

• There is an involuntary rollback of the General Operating rate of $.2660 to limit the amount of revenue growth permitted by State law.

• General Operating voter approved tax rate ceiling $3.75

• The proposed rate is $0.6178 below the ceiling

FY 2007/2008 Tax Levy

FY 2007/2008 Tax Levy

Why is the debt service rate being maintained at $0.6211?

• This rate will allow the District to retire bonds early, which will save interest and reduce principal expenses

• Anticipated savings of approx. $10.4m over 18 years

• Reserves sufficient to pay current year debt and maintain a full year's reserve

FY 2007/2008 Tax LevyImpact of proposed rates on taxpayer:

Residential Property FY07 FY08 Levy Monthly AnnualReal Estate assessed valuation ** $100,000 $124,940

subclass rate 19% 19%

Real estate tax base 19,000 23,739

per $100 assessed valuation 190 237

Operating Levy 3.3982 3.1322 -0.266Debt Levy 0.6211 0.6211 0GOB/Debt levy 4.0193 3.7533 -0.266

Total School tax bill 763.67$ 890.98$ 10.61$ 127.31$

** assessed value adjustments made to bring in proximity to market values

Diff

Other discussion points

• Tax collection rate of 92% (per FY06 audit)• Current year revenue loss of $12m ($148m vs.

$164m)• One cent levy = $438,296

FY 2007/2008Tax Levy

FY 2007/2008 Tax Levy

Special Administrative Board approval of Resolution

Setting the Tax Rate

Appendix

FY 2007/2008 Tax Levy ASSESSED VALUATION CURRENT TAX YEAR PRIOR TAX YEAR (BY CATEGORIES) (2007) (2006) Real Estate * $3,267,171,071 $2,701,765,429 Personal Property 752,468,667 789,955,366 Machinery & Tools 286,014,328 291,387,611 State Assessed Railroads Utilities and Communications 77,308,939 77,653,209 TOTALS $4,382,963,005 $3,860,761,615 ============= ============= ___________________________ *Residential and Commercial Property The following taxes are proposed: AMOUNT OF PROPERTY PROPOSED TAX

FUND TAX REVENUE BUDGETED RATE PER $100 Teachers $ - 0 - $0.0000 Incidental 123,554,851 (1) 3.1322 Capital Projects - 0 - 0.0000 Debt Service 24,500,324 .6211 TOTALS $148,055,175 (2) $3.7533 ============== ======= Special Administrative Board of the Transitional School District of the City of St. Louis BY: ENOS K. MOSS CFO/TREASURER

(1) $2.4m or 2% of increase are from new construction and $3.1m or 2.6% are from reassessments (2) Based on 90% collection rate