Maintenance and Operations Levy {YOUR} School District

Replacement of Expiring School Programs and Operations Levy

How Levy Dollars are Spent ?Program Area Amount % Levy

RevenuesStaff FTE

Tax Rate Vs. Assessed Valuation

20132012

20112010

20092008

20072006

20052004

2003 -

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Assessed Valuation (100 million)Tax Rate

{YOUR} M&O Tax Rates

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

3.53.393

2.87963.1732

1.8528 1.99933

2.94415

Tax Rates

Comparison of Tax Rates

Griffin

Mary

M Knigh

t

Olympia

Pioneer

Shelto

n

South

side

State Ave

rage

$-

$1.00

$2.00

$3.00

$4.00 $2.39

$3.47 $3.16 $2.33

$4.06

$2.94 $2.74

2013 Tax Rates

Tax Amount Per Student

Griffin Mary M Knight

Olympia Pioneer Shelton Southside State Average

0

500

1000

1500

2000

2500

3000

3500

$2,483

$3,487

$2,438 $2,815$2,024 $1,785 $2,093

2013 Levy

• While the 2013, {YOUR} Maintenance and Operations Tax Rate ($2.944) is comparable to the State Average ($2.74) it is below the {The Other} School District Rate ($4.06)

• Furthermore, {YOUR} School District Collects less money ($1,785) than {The Other} ($2,024) of the State Average ($2,093)

Replacement of Expiring School Programs and Operations Levy

Levy Amount Versus Levy Lid

20032004

20052006

20072008

20092010

20112012

2013 -

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

800,000.00

900,000.00

$784,576

$600,000

Levy LidLevy Amt

• Up until 2014, {YOUR} has consistently levied below the State’s maximum allowable levy amount

Replacement of Expiring School Programs and Operations Levy

Ballot Rate Versus Actual Rate

20012002

20032004

20052006

20072008

20092010

20112012

20132.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

3.1

Ballot RateActual Rate

Replacement of Expiring School Programs and Operations Levy

• Since 2003 and up until 2013, the {YOUR} Maintenance & Operations Levy Rate has been at or below the estimated rate

• Exceeding the estimated rate was only due to significant, unanticipated declines in assessed values

• Since 2003 and up until 2013, the {YOUR} Maintenance & Operations Levy Rate has been at or below $4.00 per $1,000 of assessed value

• Preliminary assessed valuation data from Pierce County:– 2014 preliminary assessed

valuations show an increase of 2.18%

• For purposes of planning an increase of 2.18% for assessed valuation will be used for 2014 and 2% annually thereafter

Replacement of Expiring School Programs and Operations Levy

Assessed Valuation

20092011

20130

5000000

10000000

15000000

20000000

25000000

Assessed Valuation#REF!#REF!

• For 2013, {YOUR}’s levy was at 87.7% of the allowable levy lid

• {YOUR} County school districts averaged 92.1% of the allowable levy lid

• Excluding Clover Park (impact aid) and Steilacoom (online school) {YOUR} County school districts averaged 94.7% of allowable levy lid

• Five districts were at 100% of allowable lid

Comparison Districts Levy as Percent of Max

Distric

t 1

Distric

t 2

Distric

t 3

Distric

t 4

Distric

t 5

Distric

t 6

Distric

t 7

Distric

t 8

Distric

t 9

Distric

t 10

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Levy % of Max

Levy % of Max

School District Comparison

Distric

t 1

Distric

t 2

Distric

t 3

Distric

t 4

Distric

t 5

Distric

t 6

Distric

t 7

Distric

t 8

Distric

t 9

Distric

t 10

0

1

2

3

4

5

6

7

8

LidLevy

• Current LID is 28.89% of “revenues”

• LID is scheduled to drop to 24.89% in 2018– Bill was introduced to reduce 1% per year

but did not pass

• If calculated LID is below voted levy amount– Board must reduce levy to LID by

resolution

Replacement of Expiring School Programs and Operations Levy

Proposed Amounts of Replacement Programs & Operations Levy (at LID)

Amount Rate2014 $31,750,000 current $4.082015 $40,100,000 proposed $5.052016 $41,900,000 proposed $5.182017 $43,800,000 proposed $5.312018 $45,700,000 proposed $5.43

School District Comparison

Distric

t 1

Distric

t 2

Distric

t 3

Distric

t 4

Distric

t 5

Distric

t 6

Distric

t 7

Distric

t 8

Distric

t 9

Distric

t 10

0

500

1000

1500

2000

2500

Levy & LEA Total Per Student

Levy per Student

Proposed Replacement Levy Amounts

Amount Proj. Rate

2014 $ Current $ 4.XX

2015 $ Proposed $ 4.XX

2016 $ Proposed $ 4.XX

2017 $ Proposed $ 4.XX

2018 $ Proposed $ 4.XX

Tax Impact Analysis

• M&O replacement levy amount• State funding assistance (LEA)• Estimated tax rate

Assessed Value of Prop

Gross Property Tax Incr.

Monthly Gross Incr.

Net Tax Increase from M&O, net of Tax

Federal Income Tax Bracket

25% 28% 33% 35%

$150,000

$200,000

$250,000

Proposed Replacement LevyImpact on 2015 Property Taxes

Home Value Est 2014 Levy ($4.XX)

Est 2015 Levy ($4.xx)

Increase over 2014

$100,000

$200,000

$300.000

Recommendation

• Support proposed levy @ $1XXX,YYY with a projected rate of $4.xx per 1,000