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Levy could decrease slightly due to refinanced bonds

The annual operating levy could decline slightly in Burnsville-Eagan-Savage School District 191 primarily because debt has been refinanced to lower interest rates.

The preliminary annual operating levy approved by the Board on Sept. 29 would raise about $38.3 million for the 2017-18 school year, about $644,000 less than the current year’s levy.

By Dec. 31, the school board must approve a final property tax levy which is the first step in the budgeting process for the 2017-18 school year.

The levy usually provides about 20 percent of the district's total revenue. School districts receive most of their revenue from the State of Minnesota.

Twice last year, the District 191 Board of Education was able to finance eligible bonds to lower interest rates. This is similar to when homeowners refinance their mortgages to take advantage of lower interest rates thus lowering their payments.   

Currently, the Board is in the process of refinancing a third bond that will have a positive effect on taxes for the 2018-19 school year.

“We continually review our finances to look for places we can save money and/or reduce costs,” said Lisa Rider, executive director of business services, “and we refinance bonds whenever reasonable.”

The effect of the school district's levy will vary for property owners depending upon property values. Property owners will receive tax statements from their county in November with details of their specific situations.

The district’s annual Truth in Taxation hearing will take place during the regular school board meeting at 6:30 p.m. on Thursday, Dec. 15, in the Burnsville Room, upper level, of Diamondhead Education Center, 200 West Burnsville Parkway. This is an opportunity to learn more about the district’s budget and annual operating levy and to ask questions.

 

 
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Posted: Wednesday, October 5, 2016 - 11:52