Hopkins School District Plans 5.25 Percent Levy Increase

plans a 5.25 percent increase in its tax levy for taxes payable in 2012—raising the total levy to $42.4 million, according to a report presented at Thursday’s School Board meeting.

About $1.6 million, or three-quarters, of the $2.1 million increase comes from alternative facility bonds the district issued in the spring.

The school district sold $29.4 million worth of bonds in March after the Minnesota Department of Education gave the district's 10-year capital facilities plan a positive review. The money is paying for major projects in 2011 and 2012 at , , and other facilities.

The general fund is expected to grow by $544,000 to $26.1 million—a more modest 2 percent climb.

A significant part of that climb is due to the district’s equity levy— funding based on a legislatively set formula. The equity levy is extremely volatile. It was $762,000 for taxes payable in 2010 but dropped to $153,000 for 2011. In 2012, it’s expected to climb to $343,000.

The district does not yet have details on how the levy will affect the average property tax bill. That’s partly because the state and replaced it with a market value exclusion that officials across the state are still sorting through.

Hopkins staff will explain more details to taxpayers at a truth in taxation hearing scheduled for 6 p.m. Dec. 6. The board will approve the levy at its Dec. 15 meeting.