main content starts here2019-2020 Budget Planning: Tax Levy Limit Calculation, Debt Service & Bus Proposition

| February 26, 2019

Board of Education Meeting Presentation, February 25, 2019

Working Budget Topics:

Tax Levy Limit Calculation, Debt Service & Bus Proposition

Tax Levy Limit

  • 4.46 % is the maximum allowable limit for 2019-20 as determined by the New York State Formula
  • To exceed this limit would require a 60% or greater supermajority taxpayer vote*

* Exceeding the tax cap would also mean voters would lose their Property Tax Relief Credit for the year.

Exclusions in the Formula

  • Voter-approved local capital expenditures
  • Increases in the contribution rate to TRS (Teachers’ Retirement System) or ERS Employees’ Retirement System) over 2%
  • Certain court orders or judgments which exceed 5% of the current tax levy

Use of Debt Service Account

Actual 2018-2019

  • Calculated Capital Exclusion $1,555,357
  • Calculated Tax Levy Limit 4.63%
  • Use of Debt Service** $375,000
  • Updated Capital Exclusion $1,180,357
  • Updated Tax Levy Limit 3.21%
  • Impact of Project .79%

Proposed 2019-2020

  • Calculated Capital Exclusion $1,557,549
  • Calculated Tax Levy Limit 4.46%
  • Use of Debt Service** $175,000
  • Updated Capital Exclusion $1,382,549
  • Updated Tax Levy Limit 3.82%
  • Impact of Project .68%

Projected* 2020-2021

  • Calculated Capital Exclusion $1,475,000
  • Calculated Tax Levy Limit 2.74%
  • Use of Debt Service** $0
  • Updated Capital Exclusion $1,475,000
  • Updated Tax Levy Limit 2.74%
  • Impact of Project .24%

Projected* 2021-2022

  • Calculated Capital Exclusion $1,475,000
  • Calculated Tax Levy Limit 2.50%
  • Use of Debt Service** $0
  • Updated Capital Exclusion $1,475,000
  • Updated Tax Levy Limit 2.50%
  • Impact of Project .00%

*Projected figures are based on the assumption that the state and local growth factors will be 2% state and .5% local. However, the impact of the project will not change.

**Final amounts approved by the Board of Education

Impact on Taxpayers

Levy Limit Calculation 19-20 – estimated

  • Percentage 3.82%
  • *Dollar Impact $104.98

Tax Based Growth Factor

  • Percentage 1.14%

“True Impact” – estimated

  • Percentage 2.68%
  • *Dollar Impact $73.65

*Estimates are based on:

  • $150,000 full value home
  • No change in assessed values or equalization rates.
  • Assessed values of property are determined by the town and equalization rates are determined by the state.

Bus Proposition

  • 4 – Full size 72 passenger buses – Gasoline
  • 2 – 33 passenger buses – Gasoline

Proposition Amount = $610,000

  • Less State Share of Trans. Aid 72.1% = ($439,810)
  • District/Taxpayer Share over 5 years = $170,190
  • District/Taxpayer Impact per year = $34,038

– due to the debt that will drop off the actual new cost to taxpayers will be approximately $10,000

Note: Need for buses is determined by the Mohonasen Bus and Vehicle Replacement/Obsolescence Schedule

Board of Education Vacancies

  • Two (2) “at large” seats
  • Three-year terms
  • At least 25 signatures required on petition
  • Petitions are currently available in District Office
  • Petitions are due back to the District by Monday, April 22 at 5 p.m.

Next Steps: Upcoming BOE Meetings

March 11, 2019, 7:00 p.m.

  • BOCES, Employee Benefits and General Support (Operations & Maintenance, Transportation)

March 25, 2019, 7:00 p.m.

  •  Instruction and Revenue

April 8, 2019

  • Adoption of Budget

May 21, 2019

  • Annual Budget Vote & Board of Education Election

Download this full budget review presentation