Tax Levy Limit

Plattsburgh CSD 2013-2014

Review• Tax ‘levy limit’• Introduced 2011 – discussed as ‘trade’ for mandate

relief, but was ultimately coupled with NYC rent control legislation

• Applies to school districts and municipalities• Established tax levy ‘transition’ point (at which a

60% ‘super’ majority approval replaces the 50% ‘simple’ majority approval rate)

• Not 2%

Very brief history• 2012-2013 tax levy limit (w exclusions) was

$19,897,113 (3.01% inc.) (re-vote)• 2012-2013 tax rate was $21.56 (0.9% inc.)

Reminders: State budget deadline is 4/1 ‘Unofficial’ deadline for PCSD budget approval is 4/18Statewide budget vote/election is 5/21

Data Input #1Prior Year Tax Levy

• 2012-2013 Tax Levy = $19,863,597

Data Input #2Reserve Amount

• $0

Data Input #3Tax Base Growth Factor

Clinton County• 092201 Ausable Valley 1.0050• 092401 Beekmantown 1.0093• 163401 Chateaugay 1.0024• 093001 Chazy 1.0079• 092801 NE Clinton 1.0080• 093601 N. Adirondack 1.0022• 094001 Peru 1.0034• 091300 Plattsburgh 1.0065• 094401 Saranac 1.0128• 164601 Saranac Lake 1.0026

• “Tax Base Growth Factor: Based on Tax and Finance determination of “quantity change”, such as new construction, newly taxable status of existing property, or measurable improvements to taxable property within the boundaries of the local government or school district.”

• Automatic input into formula

Data Inputs #4 & #8PILOTs Receivable

• ‘Prior year’ is automatic input from ORPS/OSC at $136,576

• Estimate ‘coming year’ at $140,000• Certain PILOTs are tied to rental revenue, and

not reported until January/April

Data Inputs #5 & #11Local Capital Tax Levy

• Levy necessary to support capital local expenditures which included any expenditures resulting from the construction, acquisition, reconstruction, rehabilitation or improvement of school district capital facilities or capital equipment, including debt service and lease expenditures, and transportation capital debt service.

Capital Local Levy worksheet

FY 2012-2013 FY 2013-2014Expense Principal + Interest 2,386,351 Expense Principal + Interest 2,490,541

Capital Outlay 0 Capital Outlay 0Bus Purchase 0 *** Bus Purchase 0Energy Perf. Contract 0 Energy Perf. Contract 0Building and Bus Leases 0 Building and Bus Leases 0

Aid Building 2,219,359 Aid Building 2,195,193Transportation 44,823 Transportation 38,749

122,169 256,599

Data Inputs #6 & #10Tort Exclusions

• $0 for both years• Must be greater than 5% of prior year levy• Excludes tax certiorari settlements

Data Input #7Levy Growth Factor

• Possible range is 1.00 – 1.02• “Allowable levy growth factor: Lesser of 1.02 or

inflation factor (percent change in CPI for the 12 month period ending 6 months before the start of the coming fiscal year over the prior 12-month period), but never lower than 1.00.”

• Source of confusion about 2% cap?• Actual inflation figure was 2.1% (so 2% used in formula)

• Automatic input into formula

Data Input #9Carryover

• N/A in 2012-2013• Not as straightforward as difference b/w tax levy

limit and levy from prior yearSchool District Available Carryover Calculator

(for fiscal year beginning 2013)To use this calculator, you must enter information in the yellow shaded cells. Note: If your 2012-13 actual levy was equal to or more than your 2012-13 Total Levy Limit (before exclusions), there is no available carryover for 2013-14.

Please enter your school district's…

2012-13 Tax Levy Limit (before exclusions)

1) 19,877,284

1.5% of 2012-13 Total Levy Limit 2) 298,159 2012-13 Actual Amount Levied 3) 19,863,597

Difference (line 1 - line 3) 4) 13,687

Your 2013-14 available carryover is the lesser of 2) or 4)...

Data Input #12Pension Exclusion

PENSION EXCLUSIONS for 2013-2014• ERS Rate 2013-14: 20.9% • -2012-13: 18.9% • Dif. 2.0% • -2.0% • ERS Exclusion = 0.0% (below required 2.0% point increase) NO ERS Exclusion

• TRS Rate 2013-14: 16.25% • - 2012-13: 11.84% • Dif. 4.41% • - 2.0% • TRS Exclusion = 2.41% x 2012-13 Salary or 2013-14 Salary Estimate for TRS

= 2.41 % X $15,956,792 = $384,559

Summary of Formula

What does it mean?

• Only establishes point at which a 60% supermajority (rather than 50% simple majority) is required for approval… BOE can offer any budget proposal it approves.

• Already reported to OSC (3/1 deadline). Figure could change, as budget development progresses.

Data of interest

• City tax levy limit is 5.2% (levy set at max)• County tax levy limit is 3.1% (levy set at 1.3%)• In 2012 in NYS, 99% of budgets with levy

increases at or below the limit passed at first vote, and 60% which exceeded the limit passed at first vote

• In April, 2012 OSC projected NYS schools’ tax levy limit at 3%... 2013 likely higher?

Misc….

• Reported to OSC, but can be changed• OSC field-verifies 1/3 of Districts each year• Slideshow posted on District websiteI