001tax rate hearing to order. Could I get an adoption of the agenda, please? >> I move to adopt the agenda as presented. >> I get a second. >> Second. >> All those in favor, please raise your right hand and say, "I." >> I. >> We'll have a presentation. Dr. Herzog. Well, good evening. It's my pleasure to present tonight on our uh 2025 uh tax rate. I've got a uh a short presentation for you about 10 minutes or so. Opportunity for questions after that, then we'll open up the uh the formal hearing at that point. Um I want to start with just an overview of the assessed value of our school district. It's a big driver in terms of setting our tax rate. Um this slide table that represents the four key areas um of our
002assessed value. There's really two, real estate and personal property. Real estate's broken out into three areas. Residential, agricultural, and the utility industrial, which is commonly referred to as commercial. And then personal property is all of our cars, boats, trailers, etc. makes up that total. You can see the number that's circled on that slide. about 3.569 billion dollars is our assessed value for 2025. That is an increase over the 2024 assessed value where it came in about $3.4 billion. This slide is really the chart is the same exact information that you saw on the previous slide just in a graphical form. It does a good job, I think, of illustrating that residential is by far the largest driver of our assessed value in our school district. We have almost 70% of our assessed value. After that,
003we have about 17% commercial, about 13% personal property. And then a is not zero. It's just a fraction of a percent is farmland. Here in LSRC, I do want to draw your attention to the right side, those two circular areas. Those are very very important numbers in terms of our assessed value. The top number shows the actual increase total increase of about 168 million in assessed value from 2024 to 2025. The bottom number is how much of that is new construction and improvements. That is a record number of new construction for LSR7. Just to put in perspective, that that new construction number is about 67 million dollars more than it was last year. And The reason why that is a very very important number is when we submit to the state auditor's office for them
004to give us our tax rate ceiling for the year, we back out, they back out that new construction value. So this slide really represents the 2025 adjusted assessed value once you back out new construction. So once you back out new construction off of our 2025 assessed value, you're really looking at about a 48 million increase. It's only about 1 4% increase from 2024 to 2025. So relatively low percent increase once you back out all of that new construction. So what does that result in? So in terms of a tax rate, I do want to take you to this chart pretty much left to right. So I want to start on the left and what that column on the left represents is what our tax rate ceiling is. What it would be if we had no
005voluntary roll backs at all. So far left top corner 4.647 6473. That would be our tax rate ceiling if we had no voluntary roll backs of any kind. And then if you move further down, debt service.9921. If we did not take the voluntary roll back in debt service, that would be the debt service levy as well for a grand total there at the bottom of 5.6394. That's if we had no roll backs. The next column over, okay, the only difference in those first two columns is the illustration for general and capital projects where we move out the five cents. So you'll notice that general in column two is 5 cents lower and we move that down to capital projects. We choose to do that in LSR7. In the eyes of the state, those top three
006rows are the same. That's all your operating levy. We choose to move 5 cents down into capital projects. Third column over voluntary roll back. This is an incredibly important column for us in LSR7. Now first thing I will say is that voluntary roll back is not voluntary this year. That we required in a reassessment year that we have to take that roll back as well. So even though it says voluntary roll back, we chose to do it at one point but it is not voluntary for this year. So that's 6524 is going to be rolled back out of general. And then also in debt service uh.121 we are going to roll that back which because we've committed to our taxpayers to keep debt service flat at 87 cents. So that's why that is a roll
007back there as well. Next column over Prop C. Okay. So we have a partial Propscy waiver but we still require to take a a a partial Propscy roll back. So that number of 1258 the actual calculation for the Props Cy roll back is 3258. We have a 20 cent partial waiver. So if you back out that 20 cent partial waiver we are required to do a 0.1258 roll back for Prop C this year as well. So I'll spend a little more time on the on the last two columns. So the last tax rate column that is those are the rates that we are recommending for the 2025 tax year 3.8191 in general 05 in capital uh for a total operating levy of 3.8691 with a debt service levy of 087. So a grand total of
0084.7391 would be the tax levy for 2025. If you move to the far right, those numbers represent the revenue that we will generate based on those tax rates. Now, I think it's important to note that's that's based on a 100% collection rate. So, if we collected 100% of our taxes, those revenues in the far right are what the district would realize. We typically don't collect 100%. We are closer on average to about 96% collection. So, those numbers will be lower, but that's estimated revenue assuming we collected 100%. Uh the next three slides really are are um are here for the purpose of helping a taxpayer understand what their tax bill would look like and where it comes from. So when taxpayers get their their assessment notice or reassessment notice, there's a market value on that
009document. Okay? In order to calculate the tax bill, you change that market value into an assessed value. And these ratios on here show you how that's done. So residential is assessed at 19%. commercial at 32, a farmland at 12, and then personal property at 33 and a third. So using that, a taxpayer would get their market value. And if you kind of move left to right here, you get your market value. Whatever classification percentage your your property is in, you would just multiply by that market value to get your assessed value. Take that times our levy of 4.7391 and divide by 100. that will give a taxpayer their tax. This next slide illustrates even better, I think, what this looks like for a homeowner. So, uh, we chose $100,000 in market value, um, because it's
010easily scalable. So, we can talk about what it looks like for $100,000 and scale that to what it be for a taxpayer with a a different value on their home. Top row is all 2024 rates to compare to the 2025 rate on the bottom. So, let's uh work left to right on the bottom. So, $100,000 home. If you figured out the assessed value, you take the 100,000 times 19% to get an assessed value of $19,000 times our tax rate of 4.7391 divided by 100 would be a tax bill of $90043 for a $100,000 property. So, if you had a $400,000 property, you just take that that $90043 times four and give you roughly a $3600 tax bill for a $400,000 property. So, increase uh for 2025 in taxes, it's a relatively low increase because we
011are raising the levy just slightly. Uh 0.0082. So, a fraction of a penny is what is changing. So, $100,000 home would rise in your taxes by 156. Uh last two slides really are to illustrate some comparisons. So this one compares our rate, our tax rate uh to what it was back in FY15 and then throughout those years as well. Um this is what you would expect to see because LSR7's assessed value in 20 FY15 2014 15 school year was much lower than it is now. The assessed value has gone up over time. So as said we have to roll back our levy when the assessed value goes up. So we've dropped it from over $6 in FY15 all the way down to 417391 this year. And then finally, we do compare ourselves to other school
012districts around around us uh that are like uh size school districts. So all these school districts on here, so LSR7 is the far left, Blue Springs is next, Independence, Liberty, North Kansas City, and then Park Hill. So, as you can see, those school districts are all similar in size, meaning they have 10,000 or more students. All those school districts do. Um, and just as a comparison point, we we do have the lowest levy of that group. That is the end of the presentation. So, at this point, I would open it up for any questions. Dr. Book, >> just want to add one more thing. So when you saw the slide, it says it went up by the assessed valuation went up by 1.4%. That's lower than the rate of inflation was on December. So December
013it was 2.9%. So when it's lower than the rate of inflation, that's when it goes up. If it was higher than the rate of inflation, our tax rate would go down. Obviously, that CPI, we can never collect more than 5% growth. Um, so if at that there's only been two years in my career that's been higher than that. That was the beginning of this decade where it was above 5%. We were capped at 5%. So, it's going up at um 8/10en of a one penny um because 1.4% is lower than a 2.9% inflation rate last December. And so, what Dr. Herzog has to do is do the calculation, send it off to the state, and the state uh reviews it and says, "Yes, this is right or no, it's not." They send it back the
014same day saying this is 100% correct. >> Board member Dawson, >> thank you. Uh thank you for that presentation. I appreciate the details. Um so you mentioned the um collection rate uh is realistically not 100%. So when you're doing your annual budget um what percentage collection rate do you assume in the budget? >> So we assume close to a 96% collection rate because that's about a three-year average for us. Um you know prior to three years ago it was a little bit higher. Uh but couple years ago it was below 95% collection rate. So it recently, but we have seen that on the rise a little bit. So, we felt like 96% was a good estimate on collection. >> Thank you, >> board member Haley. >> Thank you. Uh Dr. Herzog, I have a question
015about the local tax uh district tax rate comparison graph that you have here. It shows uh the uh the rate for the other districts, but it doesn't show their assessed value. Um, I think that would be a good comparison to to understand because they may have a much lower assessed value than we do. So, if we're going to compare these numbers, I would I would be interested in seeing that. >> We could definitely get that. >> Thank you. >> Any other board members with questions related to this presentation? That being the case, if there are any questions or comments from the audience. >> Uh, yes sir. So yes, you're correct. So your tax rate's fixed, but it the formula pretends that you would have paid it. So that credit part that you're going to get,
016it's it's in the calculation. So we will actually receive less because you have a credit, but the formula shows it like we're going to get it, but we won't. Um so the longer um you own your home and you're in that program. This happened in California. I have an uncle lives there. He's had the same house for almost three decades. He's still paying the same price as he did three decades ago. Correct. So that gap gets bigger and bigger and that will be a a small issue for us revenue-wise now in a future year it'll be a bigger issue for us. >> We have never seen the data yet. So we do not know we do not know how many pe no. >> We'd love to know that. Please So when we we have to
017do it on the cumulative. So you're right. So my home went up double percent this year, but the average for all of our assessment went up 1.4%. My home's home went up much higher than that. Um, >> the entire district went one up commercial, personal property and housing combined went up 1.4%. >> Thank you, sir. >> Okay. If there are no more additional questions or comments, I officially declare the tax rate hearing closed. Meeting adjourned. All right.