ITEM 1 attachmentsVOTE NOVEMBER 43 2014
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 * * * *
The first question would raise approximately $5.9 million,
$409.67 per student, in annual operating levy money. Here's
how the School Board anticipates the money will be spent:
» Open and operate newly constructed learning
spaces addressed in ballot question two.
Cost: $2.3 million
Hire teachers to reduce class size throughout
ISD 728. — Cost: $1 million
» Improve technology, including: hardware, software,
technology staff and tech training for teachers.
A frequent point made by parents and residents
has been that they view up to date technology as
essential. — Cost: $2.6 million
If voters do not approve Question 1
THE PROJECTS IN QUESTION 2
WILL NOT MOVE FORWARD
even if voters approve Question 2
Question 2 * * * *
The second question will ask for approval for $98.03
million in new bonding money that would be used to:
» Build a third classroom wing at Rogers High
School to solve a significant over -crowding issue
that demographics suggest will continue well into
the future.
» Build a new E-8 school in Otsego on land ISD
728 already owns. Opening this school would also
alleviate over -capacity enrollments at: Otsego
Elementary, Rogers Elementary, Hassan Elementary
and Rogers Middle School.
» Build auditoriums at Rogers High School and
Zimmerman High School.
» Make classroom and other facilities improvements and
upgrades at Zimmerman and Elk River high schools.
» Build additions at elementary schools in Rogers
and Zimmerman that would be dedicated to district
early education programs.
» Improve security at seven schools across the district.
» Remove and replace portable classrooms with
permanent structures district -wide.
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 High 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 1 and 2.
-1
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 iivrwww.elkriver.k12,mn.us/StrongSchools, facebook.com/isd728 and twitter.com/isd728
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, MN 55330. This publication is not circulated on behalf of any candidate or ballotquestion.
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CoREUMWARV WVOR61 ATi 9019 - FOR DOSC USMON 0MLY
Estimated
Elk Riven Schaal District No. 728
Estimated Change in
jun(327, 2014
Analysis of Tax 901PRO f®r Potential Facility and Operating Referendum Scenadas
I
Scenario 1. $98 liEU. Building Bonds; Alto Facilities All Bonds Thru FY21; Increase in (Operating Remo to $760
Increase in Net Decrease Increase in
Net Change
Taxes for in Other Debi/ Operating
in Tape
New Bonds Facilities Levies Referendum
Levies
$1,565,554 -$5,149,536 $4,062,438
$478,156
EstYimaterLl Ta;� Raucm ��a���a�,9e un X0`95°'
-151 143
(l awllmt V, a- 1U(,:, GRenLG 0.07153%
0.07153%
u OK Ou[P WRY WliG 2.54% -8.36%
-5.82%
The figures in the table are based on school district taxes for the operating referendum, debt service, and other facility -relater
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.
T 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.
E H L E R
LEADERS IN PUBLIC FINANCE Taxlmpact 14p
Estimated
Estimated Change in
Type of pvopor��y
-- Market Value
I
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
$106
-$355 $179
-$68
Commercial/
500,000
235
-773 358
-180
Industrial `
800,000
3800
-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
The figures in the table are based on school district taxes for the operating referendum, debt service, and other facility -relater
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.
T 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.
E H L E R
LEADERS IN PUBLIC FINANCE Taxlmpact 14p
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Elk River School District No. 728 July 24, 2014
Estimated Impact for Proposed November 2014 Ballot Questions
Question
1 2
Net Decrease
Net Change
Description
Increase in Building Bonds
in Other Debt &
in Tax
Taxes Payable in 2015
Operating $98,030,000
Facilities Levies**
Levies
$89
Referendum
-$83
$30
Change in Tax Levy Payable in 2015
$4,060,438 $1,511,038
-$4,062,438
$1,509,039
Estimated Tax Rates Payable in 2015*
36
Residential
250,000
Market Value Rate
0.07153%
-197
0.07153%
Tax Capacity Rate
2.45%
-8.36%
-5.91%
* 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")
*" If the proposed ballot questions are approved, the district will make reductions in other tax levies payable in 2015, leading to
a net reduction in those levies as show in this column. The primary reduction will be in the alternative facilities "pay-as-you-
go" levy. These reductions will offset most of the tax increases from the proposed ballot questions.
+ 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.
'"` For agricultural homestead property, a value of $200,000 was assumed for the house, garage, and one acre.
EHLERS
Taxim act 14Voteb
n. LEADERS IN PUBLIC FINANCE p
Estimated
Estimated Change in
Type of Property
Market Value
Taxes Payable in 2015
$125,000
$89
$24
-$83
$30
200,000
143
44
-151
36
Residential
250,000
179
58
-197
40
Homestead
300,000
215
71
-242
44
350,000
250
84
-288
46
400,000
286
98
-333
51
450,000
322
110
-376
56
600,000
429
153
-522
60
750,000
536
199
-679
56
$250,000
$179
$104
-$355
-$72
Commercial/
500,000
358
227
-773
-188
Industrial +
800,000
572
374
-1,275
-329
1,000,000
715
472
-1,609
-422
2,000,000
1,431
962
-3,281
-888
$500,000
$358
$153
-$522
-$11
Apartments
1,250,000
894
383
-1,306
-29
2,000,000
1,431
613
-2,090
-46
$300,000
$143
$57
-$193
$7
Agricultural
500,000
143
81
-276
-52
Homestead **
1,000,000
143
142
485
-200
1,500,000
143
204
-694
-347
2,000,000
143
265
-903
-495
Agricultural
$4,000
$0.00
$0.98
-$3.34
-$2.36
Non -Homestead
5,000
0.00
1.23
-4.18
-2.95
(dollars per acre)
6,000
0.00
1.47
-5.01
-3.54
8,000
0.00
1.96
-6.69
-4.73
10,000
0.00
2.45
-8.36
-5.91
* 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")
*" If the proposed ballot questions are approved, the district will make reductions in other tax levies payable in 2015, leading to
a net reduction in those levies as show in this column. The primary reduction will be in the alternative facilities "pay-as-you-
go" levy. These reductions will offset most of the tax increases from the proposed ballot questions.
+ 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.
'"` For agricultural homestead property, a value of $200,000 was assumed for the house, garage, and one acre.
EHLERS
Taxim act 14Voteb
n. LEADERS IN PUBLIC FINANCE p