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Operating Referendum

WHAT YOU NEED TO KNOW

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What is an operating referendum?An operating referendum provides

additional revenue for:• Instructional Supplies (textbooks,

workbooks, paper, etc.) • Salaries and Services directly

related to the educational process (teachers, secretaries, custodians, bus drivers, administrators, etc)

• Utilities (gas, heat, electricity)• Basic Building Maintenance• Transportation (fuel, bus

maintenance and repair)

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How is an operating referendum different than a building bond?

A building bond provides one time revenue that can only be used for major building renovation or new construction.

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How is taxation for an operating referendum different than a building bond?Unlike building bonds: • Agricultural properties will pay

taxes based solely on the value of their house, garage, and one acre of surrounding ag land.

• Seasonal recreational residential properties (cabins) do not pay taxes on operating referendum.

Taxable property is dictated by Minnesota tax codes.

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Why do we need an operating referendum?

The current operating referendum will expire in 2009.

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Why do we need an operating referendum?

The State of Minnesota’s basic education aid has been frozen. Basic State PercentageSchool Year Funding Per-Pupil Increase2002-03 $46012003-04 $4601 0.00%2004-05 $4601 0.00%2005-06 $4783 3.96%2006-07 $4974 3.99%2007-08 $5073 1.99%2008-09* $5174 1.99%2009-10 $5124 -0.97%2010-11 $5124 0.00%Yearly Average Increase 1.37%*Includes one-time $50 per-pupil funding

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Why do we need an operating referendum?

The districts enrollment has been declining, which results in a decrease in state funding.First Day of School K-12 Enrollment

2002-03 996 2003-04 1005 2004-05 987 2005-06 1002 2006-07 957 2007-08 957 2008-09 887 2009-10 866 2010-11* 834 2011-12* 814 2012-13* 790 *Projected based on pre-school population and historical

trends

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Why do we need an operating referendum?

Projected 2010-11 expenditures and revenue leave a shortfall.

Revenue $6,930,574Expenditures ($8,332,833)Shortfall ($1,402,259)

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What is the board asking voters to consider?

The school board is asking voters to consider an operating referendum of $1200 per pupil unit for six years, beginning in the 2010-11 school year.

If approved, the referendum would provide an estimated $1,393,853 in funding per year to help meet the $1,402,259 projected shortfall.

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How do we utilize our financial resources?

2008-09 Expenses

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Have we been prudent with our resources?

The district has focused on fiscally prudent budgeting and planning to make the 2002 operating levy last the full seven years of voter approved levy authority.

The Minnesota Department of Education has recognized the District for five consecutive years with the School Finance Award. It is given to districts that demonstrate fiscal health and compliance with state statutes.

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What reductions have been made since 2002?Even with the passage of the 2002 operating

referendum, the district still needed to make the following reductions in order to maintain a balanced budget.

•8.2 Teachers•4.0 Paraprofessionals•1.0 District Office •1.0 Curriculum Coordinator•0.5 Administrator•0.5 Custodian•0.4 Counselor•Closed and repurposed the Elysian building

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What will the operating referendum be used for?

The operating referendum will be used to maintain current programming.

How do our school taxes compare to neighboring districts?

Comparison of school taxes on a home with taxable market value of $115,000

$0

$100

$200

$300

$400

$500

$600

WEM

$19

3

NRHEG $23

9

Cleve

land

$288

Mon

tgom

ery-Lo

nsda

le $3

22

Faribau

lt $35

1

Group

Ave

rage

$36

9

United S

outh

Centr

al $3

83

Med

ford

$42

3

Wase

ca $

438

LeCen

ter $

444

JWP $

449

Bloom

ing P

rairie

$537

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How do our school taxes compare to neighboring districts?

Comparison of school taxes on a home with taxable market value of $220,000

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What will the operating referendum cost property owners?

Types of Properties: Residential, Farmstead, Apartments, and Commercial-Industrial Property

Taxable 2009 2010 Estimated

Market Value Expiring Levy Proposed Levy Net Increase

$50,000 $46 $118 $72 $75,000 $69 $178 $109 $100,000 $92 $237 $145 $125,000 $115 $296 $181 $150,000 $138 $355 $217 $160,000 $147 $379 $232 $175,000 $161 $414 $253 $200,000 $184 $474 $290 $250,000 $230 $592 $362 $300,000 $276 $710 $434 $350,000 $322 $829 $507 $400,000 $368 $947 $579

What would our taxes have been this year with the proposed levy in place?

$0

$100

$200

$300

$400

$500

$600

Comparison of school taxes on a home with taxable market value of $115,000

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What would our taxes have been this year with the proposed levy in place?

Comparison of school taxes on a home with taxable market value of $220,000

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What would happen if the district dissolved?

If we close our schools, the borders of neighboring districts would be redrawn to include property in our district.

Tax payers would pay school taxes to their new district.

What will happen if the operating referendum does not pass?

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If the operating referendum does not pass, the district faces a projected $1.4 million shortfall. During the 2010-11 school year, the school board would met this shortfall by:

• Spending the entire projected general fund balance of $637,000

• Making budget reductions of $765,000

During the 2010 calendar year, the school board would again ask voters to consider an operating referendum.

If that referendum also fails, the school board would need to make further reductions of at least $637,000 beginning in the 2011-2012 school year.

What will happen if the operating referendum does not pass?

Increase 8/24/2009 Salary (Decrease) (Cost in

& Benefits Supplies Transportation Utilities Other Revenue Lieu) TotalGeneral ReductionsOne Administrator $94,720 $94,720Share/Part-Time Superintendent $30,000-$50,000 $30,000-$50,000One Athletic Director $42,495 $42,495Reduce to 2 Sections 1-6 (Estimated Class Size 25-34) Reduce 5 Teachers $324,021 $324,021Change to All Day Every Other Day Kindergarten Reduce 1 Teacher $61,868 $61,868One Media Specialist $63,463 $63,463One Secretary $20,000 $20,000Director of Transportation/Bus Mechanic $48,599 $48,599Food Service Director $44,621 $44,621Director of Buildings and Grounds $59,205 $59,205One Custodian $38,170 $38,170Estimated Value of Bus Fleet $300,000 $300,000 **Reduce Bus Service $14,000 $14,000Close Morristown Building Utilities $86,500 $86,500 Support Staff Reductions $77,255 $77,255 Shuttle Bus & Staff Travel $17,535 $17,535 Cost to Lease 8 Portable Classrooms (3 year lease) ($111,780) ($111,780) One-time Set-up Costs Portable Classrooms ($286,593) ($286,593) **Outsource Business Office $140,257 ($75,000) $65,257Utilize a Four Day Week $20,000 $90,000 $110,000NWEA Testing $8,500 $8,500Newsletter $16,000 $16,000

* Schedule is preliminary and is subject to change. Information provided is based on known costs from the unaudited 08-09 school year. Portable classroom costs arebased on a quote obtained from Innovative Modular Solutions. Bussiness Office outsourcing costs are based on a quote from School Management Services.** Represents a one-time revenue or (expense).

Potential Budget Reductions for 2010-11*

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What will happen if the operating referendum does not pass?

Increase 8/24/2009 Salary (Decrease) (Cost in

& Benefits Supplies Transportation Utilities Other Revenue Lieu) TotalProgram EliminationsCounseling $178,003 $370 $178,373Art $120,576 $4,060 $124,636Ag $58,218 $6,147 $64,365FACS $94,319 $1,670 $95,989 Vocational Levy Revenue (Ag and FACS) ($18,397) ($18,397)Industrial Technology $57,114 $4,487 $61,601Band $42,550 $4,101 $46,651Choir $83,106 $6,176 $89,282Physical Education $166,280 $5,066 $171,346Technology $69,813 $69,813Spanish $61,920 $323 $62,243Challenge Program $18,000 $18,000Police Liaison Officer $28,500 $28,500

Athletics/CoCurricular ReductionsEliminate JH Athletics $55,629 $7,183 ($7,000) $55,812Reduce HS Athletics 10% $16,396 $5,544 $21,940Increase Fees $5,000 $5,000Eliminate JH Activities $3,864 $45 $3,909Eliminate HS Activities $25,858 $5,522 $31,380

Totals $2,165,320 $50,694 $407,535 $86,500 $18,000 ($20,397) ($473,373) $2,234,279-$2,185,320 -$2,254,279

* Schedule is preliminary and is subject to change. Information provided is based on known costs from the unaudited 08-09 school year. Portable classroom costs arebased on a quote obtained from Innovative Modular Solutions. Bussiness Office outsourcing costs are based on a quote from School Management Services.** Represents a one-time revenue or (expense).

Potential Budget Reductions for 2010-11*

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When & Where Do I Vote?Polls will be open from 7:00 a.m. to 8:00 p.m.

on Tuesday November 3, 2009.

Elysian Building, GymnasiumElysian Township & City of Elysian, Precincts 1 &

2Jamestown Township, Blue Earth CountyJanesville Township, Waseca County

Morristown Building, GymnasiumBlooming Grove Township, Waseca CountyMorristown Township & City of Morristown Shieldsville Township, Rice County City of Warsaw

Waterville Building, Elementary GymnasiumCordova Township, Le Sueur CountyIosco Township, Waseca CountyKilkenny Township & City of Kilkenny Ward 1Waterville Township & City of Waterville 23

Want to know more?County Auditors WEM School Board Members Blue Earth 507-304-4182 Andrea Jewison 507-362-8516 Le Sueur 507-357-2251 Tom Little 507-362-8772 Rice 507-332-6104 Gary Michael 507-362-8466 Waseca 507-835-0610 Pat Nusbaum 507-267-4327

Roy Schmidtke 507-685-4276EHLERS and Associates Toya Schmidtke 507-362-8394 Educational Team 800-552-1171 Jay Schneider 507-362-4971

Check out our website at: Administration 507-362-4432 www.wem.k12.mn.us Joel Whitehurst, Superintendent

Randy Mediger, Principal (K-4) Bernardine Sauter, Principal

(5-8) John Kaplan, Principal (9-12)24

Click on the WEM Property Tax Information Website link and use the interactive calculator to see the tax impact of the operating referendum on your property.

November 3, 2009

Operating Levy Referendum

Be Informed and VOTE

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