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District staff brief board on preliminary FY27 levy showing small overall increase
Summary
Finance staff presented preliminary fiscal‑year 2027 levy estimates showing a modest overall levy increase driven by general fund components and long‑term facilities needs; final numbers will return in two weeks.
Jerder Holmgren, presenting levy estimates on Sept. 9, told the Lakeville Area School Board the numbers discussed were preliminary data recently received from the Minnesota Department of Education and would return for board action in two weeks.
"So the levy information we're gonna talk about, is for the fiscal year '27," Holmgren said, noting the board must take a preliminary action in September to meet county deadlines and will hold the Truth‑in‑Taxation hearing in December.
Holmgren walked the board through how market value, net tax capacity, sales ratio and adjusted net tax capacity combine to determine levy capacity. He said sales ratios (the relationship between sale price and assessed value) and the state's equalization process drive the adjusted net tax capacity used to compute tax levies. He described the state’s adjustments as an equalization step that can materially increase the calculated tax base.
On line‑item components, Holmgren said the district expects small changes across operating levies (local optional revenue, operating referendum and equity components) and noted a projected $1.3 million increase in operating levies and roughly $2.3 million in capital components for fiscal 2027. He highlighted vocational funding increases tied to teacher licensure in career and technical education programs, which allowed higher vocational revenue this year.
Holmgren said community education figures include aid offsets that can make levy lines fluctuate without representing net cuts in services. He also explained debt service is projected to decline as existing debt amortizes and the district under‑levied in prior years to return funds to taxpayers; overall the debt service levy shows a multi‑million dollar reduction.
As a result of all funds combined, Holmgren said the draft levy totals an approximate 0.25% increase districtwide, though property owners’ actual tax bills will vary based on new construction and property growth in specific neighborhoods.
Board members asked clarifying questions about timing and follow‑up. Holmgren said staff will return Sept. 23 with updated numbers for formal action and that state adjustments received after the presentation could tweak the totals. No formal vote was taken at the Sept. 9 meeting.
