“Why don’t we just maintain it ourselves?” asked John Harrington.
Schultz and Wellen rebutted that if the district took over maintenance of the field it currently leases from the City, that would open the familiar situation of improving non-owned property. The owner can always declare that the “improvements” made at lessee’s expense were not needed.
In any event, it’s uncertain whether any amount of maintenance or improvement will solve chronic problems.
“There are underlying conditions there that will be a problem for a long time,” said Schultz.
2. Use the field at Ellendale.
The ballfield at Ellendale is currently being used by the Junior High. Its disadvantages are that it has no homerun fence, there is no available parking, and dugouts and other construction is needed to make it satisfactory for Varsity Softball.
3. Build a new softball field on NRHEG’s western property in New Richland.
Activities Director Dan Stork and Softball Coach Wendy Schultz suggested to the Facilities Commitee that the district investigate the feasibility of building a new softball field on NRHEG’s western New Richland property.
Supt. Wellen announced to the board that an area engineering firm has been contacted and is willing to examine the property at no initial expense, and then for “a few hundred at most” to give an initial cost evaluation of such a project.
“No board action is required here,” said Wellen, “but I wanted to have your input on this.”
Wellen was encouraged to proceed. Board members agreed that since not much money was involved, it would be good to know how practical such a solution might be, whether or not the board actually decided on this option.
“Even if we were (to build a new field), we’re still going to have to do something for the coming year,” said Wellen pointedly.
Audit
A representative from auditing firm Eide Bailly walked board members through the audit of the 2011 budget, at a meeting of the NRHEG School Board Monday, Dec. 5, concurrent with the annual Truth in Taxation Hearing. He commented that the fund balances were up to the levels they were before 2007.
“So we did good?” asked John Harrington.
Yes, the district has “done good.” The only criticism the auditor’s rep could find was that the district’s Community Services balance was high.
He explained that if a district shows too high a positive balance for too long, the levy limit will be cut proportionally.
“The Government doesn’t like you to be fiscally responsible,” he added dryly.
Supt. Wellen reminded the board that “breaking even” is the ideal.
Undesignated fund balance was up because of the operating referendum. But the designated fund balance is high because the district hasn’t been making the effort lately to spend it down.
According to the audit results, NRHEG is “consistently below State average in cost per pupil.”
Truth in Taxation Hearing
Supt. Wellen presented the annual budget and real estate tax review.
The NRHEG District budget is comprised of five funds:
1. General fund
2. Food service fund
3. Community service fund
4. Debt service fund
5. Student Activity fund
The General Fund encompasses salaries, benefits, supplies, other costs for instruction, administration, transportation, custodial services, etc. Also it includes insurance, utilities, other purchased services, and annual capital expenses. It accounts for approximately 86 percent of operating expenses in 2011-2012.
The Food Service Fund accounts for all expenses of the breakfast and lunch programs.
The Community Service Fund accounts for expenses of educational and recreational programs not part of the “regular” K-12 and special education programs, such as Early Childhood Family Education.
The Debt Service Fund covers for principal and interest payments on the district’s voter-approved building bonds or Board approved bonds.
The Student Activities Fund revenues and expenses for student activities, i.e., Fundraisers, Homecoming. This fund is basically “money in, money out.”
2011-12 Budget by Fund
Revenues
Fund Budget %
General $8,211,207 85.9%
Food Service $401,800 4.2%
Comm. Serv. $183,925 1.9%
Debt Serv. $687,927 7.2%
Student Activity $71,500 0.7%
Scholarships $4,000 0.1%
Total $9,560,359
Expenditures
Fund Budget %
General $8,183,982 86.4%
Food Service $400,311 4.2%
Comm.Serv. $142,082 1.5%
Debt Serv. $670,560 7.1%
Student Activity $71,500 0.7%
Scholarship $4,000 0.1%
Total $9,472,435
The expenditures came just under the revenues this year for a desirable balance.
Bad news for taxpayers this year:
The Legislature sets the formulas for tax capacity. These formulas determine how much of the tax burden will fall on different types of property.
Next year, the homestead market value credit that the state paid to reduce qualifying homeowner’s taxes is going away and is being replaced with a “HOMESTEAD MARKET VALUE EXCLUSION” that will reduce the taxable value of qualifying homesteads. This change will increase the taxes on most properties and is independent of any action taken by local governments.
By eliminating the homestead market value credit, the state saves approximately $260 million, which helps to balance the state’s budget. Local governments do not have the legal authority to undo this state law change.
Supt. Wellen recommended that taxpayers visit Steele County’s website, http://www.co.steele.mn. us/truth_in_taxation_information. html for more information.
The state did not change the property tax refund calculations. Affected homeowners with household incomes below $100,780 or whose taxes increase by more than 12% or $100 (whichever is greater) may apply for the state’s property tax refund and, if qualified, will get some of the increase refunded. The form to apply for the state’s property tax refund is the M1PR and is available at: http://taxes.state.mn.us/pages/ current_forms.aspx.
Comparison of levy amounts
Year Levy Amt. Change
2009 pay 2010 $1,315,781.82 -4.60% w/referendum
2010 pay 2011 $1,353,301.69 1.98% ¼ of new Health/Safety
2011 pay 2012 $1,383,673.05 2.24%
The district also held a work session Monday, December 12 to discuss enrollment projections, building organization to accommodate enrollment changes, administration alignment, budgeting and other issues. Results of the work session will be brought up at the regular December meeting on Monday, December 19.
