Agenda Item
Meeting Date:
8/10/2017 - 7:00 PM  
Information - Presentations  
7.1 2017-2018 Tax Levy (Information)  
Comprehensive School Improvement Plan Reference:
Focus Area: Financial
Key Requirements: Maintain a sound fiscal position with transparency, integrity and efficiency while supporting the strategic goals of the district.
DEA - Revenues from Tax Sources  
Provide Name(s) of Attachments:
File Attachment:
Preliminary 2017-18 Tax Rate Information.pdf
Provide Background Details and Rationale:
Platte County has provided the Park Hill School District with preliminary certified assessed values for 2017 real and personal property. The aggregate assessed values increased by $110.5 million (7.0%) over last year. The total assessed valuation for 2017 is $1,684,334,510. New construction and improvements accounted for $37.9 million in new assessed valuation, and assessments on existing real property increased by $67.0 million. In addition, assessed valuation for personal property increased by $5.5 million.

District voters last approved an increase in the district’s operating tax rate in 2002. At that time, the voters approved an operating tax levy of $4.9970. Due to voluntary rollbacks and the application of the Hancock Amendment, the Park Hill Board of Education has approved a levy lower than $4.9970 every year since the 2004-2005 school year.

In August, 2016, the Board of Education approved an operating tax levy equal to the 2016 tax rate ceiling of $4.9183. This represented a tax rate decrease of $0.036 from the prior year.

In July, 2017, the Missouri State Auditor lowered the district’s tax rate ceiling for $4.9183 to $4.8964 due to the district's receipt of revenues from state assessed utilities exceeding the estimated amount in the 2016-2017 school year.

Applying the Missouri’s Hancock Amendment, in which reassessment is to be “revenue neutral,” results in an additional decrease in Park Hill School District’s tax rate ceiling from $4.8964 to $4.7928. The decrease in the levy was due to the positive reassessment of the real property values in 2017 over the values in 2016.

For the thirteenth consecutive year, the tax rate ceiling ($4.7928) is below the last voter approved tax levy of $4.9970.

The Board of Education was unable to set the levy at the time they approved the 2017-2018 budget because the Platte County Board of Equalization and State Auditor’s Office had not concluded their work in June, 2017 when state law requires the Board of Education to approve a budget for the following year. State law also requires the Board of Education to set the tax rate by August 31 of each school year. The Board of Education has approved the 2017-2018 school district budget assuming (1) an overall increase in aggregate assessed valuation of 1.5%; and (2) the rate tax ceiling remaining at $4.9183. Based upon the certified information provided by the County Clerk in August, 2017, the aggregate assessed valuation increased by 7.0% which will result in approximately $2.1 million in un-budgeted operating revenue. This is expected to be $4.0 million more in current total tax revenue than received last fiscal year.

The state auditor has set the allowable debt service tax rate at $0.9331. This is primarily based upon debt obligations in upcoming calendar years, including new debt approved by voters in April, 2017. It is recommended (and budgeted) that the Board of Education voluntarily reduce this levy by $0.3224 to $0.6107. This is consistent with the “No-Tax-Increase” pledges made in 2006, 2011 and 2017 years in which the voters approved the sale of general obligation bonds. A debt service tax levy of $0.6107 has been used in projections in subsequent years as well as the district plans for future facility needs.

The Board will take action on a recommended levy during a public hearing at the August 24, 2017 Board meeting.

Notification via local posting of the tax rate hearing is required by state law. These postings do not obligate the Board of Education to approve a specific tax rate but serve to notify the public of the public hearing.
Provide Funding Source and Estimated Cost:
The Board will be asked to take action on a recommended levy during a public hearing at the August 24, 2017 Board meeting.  
Recommended By:
Signed By:
Dr. Paul Kelly - Assistant Superintendent
Signed By:  
Dr. Jeanette Cowherd - Superintendent