DETROIT LAKES — $9,953,011 in property taxes for the Detroit Lakes School District for the 2024-25 fiscal year will be finalized following a Truth in Taxation hearing scheduled for Monday, Dec. 16, at 6 p.m. in the Detroit Lakes City Council Chambers. A decision is to be made.
The Detroit Lakes School Board unanimously approved the preliminary levy certification at its September meeting. The total amount represents a 2.9% increase, or about $280,000, compared to the 2024 tax bill of $9.53 million, said Jason Kuehn, director of finance and operations for the district.
“This is the lowest increase since I’ve been in this position,” Kuehn said, adding that he became the district’s finance director four years ago. “Usually it’s between 4 and 7%.”
The levy is scheduled to be authorized in 2024, but the funds generated by the levy will not be applied to the district’s budget until the 2025-26 school year. Kuehn said the district’s fiscal year actually begins on July 1, which is also the day the budget for the upcoming school year is approved, and that his office collects data such as projected enrollment for state levies. He said this is because they will start entering the information into the money information system. period facility maintenance plans, program offerings, and levies approved by the voters or board under which the school district operates;
“Currently, there is no operating levy,” Kuehn said, but the district has paid off some of its debt, including bonds purchased through a $50 million bond levy referendum approved by local voters in 2018. It is still being repaid.
Kuehn added that other data used to determine the maximum levy amount, such as property assessed value and tax classification rate, will be provided by the county and state. When completed, “it will be about a 40-page report,” he said.
“Our past practice has been to certify up to the maximum amount that we can get,” Kuehn said. This is because the final levy approved in December can be reduced from the interim levy approved in September, but cannot be increased. State Law.
Kuehn said the district’s annual budget is in the $52 million range, about 60 percent of which goes to the district’s general fund fund and the remaining 40 percent to debt service.
He said about 75% of the district’s general revenue goes toward staff salaries and benefits, and the remaining 25% goes toward other operating expenses, such as transportation and facility improvements and maintenance.
He added that about 20 percent of the district’s annual budget comes from tax collections, with the remainder coming primarily from state and federal aid. But increasing the levy “doesn’t necessarily mean more revenue for school districts,” Kuehn said.
This is because increases in levies can cause corresponding decreases in state and federal aid. “Last year was a great example of that,” he said. “Our levy increased by 7 to 8 percent, but the overall amount of revenue we generated decreased.”
A reporter for Detroit Lakes Newspapers since moving to the community in October 2000, Vicki has been promoted to Community News Lead for the Detroit Lakes Tribune and Perham Focus, effective January 1, 2022. She has covered just about every “beat” a reporter can. You’ll have assignments ranging from county commissions and city councils to entertainment, crime, and even sports. Born and raised in Madelia, Minnesota, she graduated from Hamline University, where she received a BA in English Literature (concentration in writing). Contact him at 218-844-1454 or vgerdes@dlnewspapers.com.
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