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Lakeville board approves preliminary 2025 levy as district eyes November referendum

Lakeville Area Schools Board of Education · September 25, 2024
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Summary

The Lakeville Area Schools Board voted 6–0 to approve a preliminary levy for pay-25, setting maximum levy figures now to preserve options for a potential operating levy on the November ballot; district officials said lower enrollment drove a modest net decrease in levy components.

The Lakeville Area Schools Board of Education voted unanimously to approve the district’s preliminary levy for calendar year 2025, a step officials said preserves the board’s flexibility while the district proceeds with outreach on a separate operating levy question this fall.

District operations lead Bill Holmgren told the board the preliminary levy is being certified at its maximum now so the district can add an operating levy later if voters approve it in November. “We’ll ask you to approve it at the maximum,” Holmgren said. The board then voted 6–0 to adopt the preliminary pay-25 levy.

Why it matters: The levy underpins restricted portions of the district budget — including equity revenue, referendum and capital components, and debt service — and will help shape tax statements and budget planning ahead of a December truth-in-taxation hearing. Holmgren walked the board through the components the state uses to calculate levies (market value, net tax capacity and the sales ratio) and said the district is seeing a lower adjusted net tax capacity driven primarily by slower housing and enrollment growth.

Board members pressed Holmgren on the district’s enrollment assumptions and the size of possible gaps. Director Thompson said the district’s community contributes roughly $78 million in levies toward an overall operational budget the board discussed as roughly $283 million, and asked what levers the board could use to reduce its portion of that total. Holmgren identified referendums and the capital projects levy as the primary local levers and warned that lower enrollment has produced a negative adjustment that creates a gap the district will need to manage in fiscal 2026.

Officials provided key figures: the board discussed roughly $24 million in existing operating levies, an adjusted-net-tax-capacity figure Holmgren cited during the presentation, and the district’s estimate that the average-valued home would face about $13 per month in tax impact if the referendum passes. Holmgren also outlined the timeline: the district must finalize levy paperwork to the county the following day, will hold a truth-in-taxation hearing on Dec. 17, and will certify final levy figures at that December meeting.

Acting Superintendent Dr. Emily McDonald told the board the district is conducting community forums and will post an on-demand presentation and a tax-impact calculator on the district website so residents can find specifics. “Early voting starts September 20th, and election day is on November 5th,” McDonald said, and she encouraged residents to consult the district FAQ or contact the district with questions.

What’s next: The board approved the preliminary levy; if voters approve an operating levy in November, the district would incorporate that outcome into its December certification and truth-in-taxation hearing.