By the Numbers: District 197's $3.5 Million Levy Request

What is the levy referendum?

The District 197 levy referendum on the ballot Nov. 8 will ask voters to renew an existing $1.7 million levy that is expiring next year, and increase that levy by $1.8 million to raise $3.5 million a year.

Why is the district asking for this?

If voters don’t pass the question, the district says it will face $3.2 million in cuts from the projected 2012-2013 school year budget. By filling that gap, the district buys time for district redesign initiatives to be developed with the help of the to lower the cost of education in the long run.

How much will it cost me?

The increased levy’s impact would increase residential property taxes $35 a year for every $100,000 in home value; $89 a year for a home valued at $250,000.

Yeah, but how much TOTAL?

For a $250,000 home, that brings the total district impact on property tax statements from about $772 to $861.

The state average is $935. Residents with a $250,000 home in the Apple Valley-Eagan-Rosemount School District pay $1,239, according to district data. In Farmington, where the district is growing and expanding facilities, the average is $1,668 a year. In Roseville, they pay $857.

Out of 48 districts in the metro area, District 197 residents have the fourth-smallest tax burden from their school district, and would increase, if all other districts held steady, to seventh from the bottom if the levy passed. That data is provided by Ehlers, a public finance firm in the Twin Cities, and is available on the district website by clicking the Elections button, then "How do we compare?" on the side rail.

Can District 197 residents absorb a tax increase?

The economy continues to take its toll on taxpayers throughout the district. Last year in District 197 there were 147 sheriff sales, according to the county’s Geographic Information Services. In Q1 of this year, there were 38; Q2, 47; and Q3, 35. Before 2009, foreclosures targeted those who bought risky, non-traditional mortgages. Since then, foreclosures have mostly targeted homeowners with fixed rate mortgages that can no longer afford their payments due to financial hardship, according to Dakota County’s Office of Planning and Analysis. While Mendota Heights has had the lowest number of foreclosures in the county among large cities, Eagan has one of the highest.

On the other side, the district receives about 63 percent of its funding from the state, a number that has declined over the years. State funding has not increased over past years to match the rising costs of operation, including a net bump of about $173,000 this year. The district made cuts and increased some revenue to take about $1.9 million off the budget last year, and the .

Where does the money go?

Eighty percent of the district’s costs are tied up in salaries and benefits for everyone from teachers, to administrators to bus drivers and food workers.  About 12 percent is dedicated to purchases such as utilities and gas. The remainder is spent on supplies (4 percent) and dedicated funds for capital maintenance (4 percent).

What does that mean in terms of potential budget cuts?

Last year the district sought to cut $2.5 million and considered proposals to close Mendota Elementary, shift to a six-period day at the high school, eliminate elementary school counselors and place advertisements in school hallways, to name a few. Each of those options was rejected. Most of the impact was dealt in the form of $1.8 million in increased class sizes, cuts to support staff, some small revenue increases, and a dip into reserves, which now stand at about 2 percent of the yearly operating budget.

Sources: District 197, Dakota County