Information and Resources

Review and Comments

Community Survey and Results

The Byron School Board reached out to all District residents to gather input regarding potential facility updates and expansion with a community-wide survey (September 2019) . To assist with data gathering efforts, the district contracted with School Perceptions LLC, an independent firm with expertise in conducting school district surveys.

What is Debt Service Equalization?

The Debt Service Equalization program began in 1993, offers state aid to certain school districts (about 10%) to help them repay debt used to construct or renovate school buildings and other facilities. This aid is intended to help offset or “equalize” variations in school district property taxes due to districts’ varying levels of property wealth. Because Byron has a low tax-base wealth per student and relatively high debt for capital projects, we are one of the districts that qualify for this aid. If the voters approve bonds, they would be repaid over 20 years, through a combination of state aid and local property tax levies. Ehlers' estimates that state debt equalization aid will finance approximately 42 percent of the debt service payments on the bonds over the 20 year period.

What would does the finance schedule look like WITH and WITHOUT Debt Service Equalization?

With Debt Service Equalization Aid

Without Debt Service Equalization Aid

Why is there such a big difference?
- Since the existing debt generates only 19% aid (because the majority is in the first tier of aid) while the new debt generates 42% (mostly in the second tier), it magnifies the difference between the aid and the no aid scenarios when eliminating aid on both existing and proposed bonds.
  - Learn more here.

What is the Ag2School Tax Credit?

Minnesota’s large amount of agriculture and timber land has impacted the funding schools receive from communities for their facilities and led lawmakers to take steps to provide support to taxpayers and students. Learn more here.

What are the results of past referendums?

History of voting on bond/operating referendums.

What is the difference between a Levy and Bond?

A levy is supplemental to the general fund and the general fund pays for the operation of the school district. It includes salaries and benefits, supplies and equipment, materials and utilities, fuel and extracurricular. A bond is specific to building improvements or specific to do remodels or to build new construction.

Minnesota Statutes, section 123B.02, subdivisions 1-2 and 7-8, give school boards of independent school districts the authority to conduct school district business that relates to school facilities. The school district must provide school facilities for all resident students and, as authorized by voters or statute, may issue bonds and levy to pay for school facilities. Minnesota Statutes, section 475.52, subdivision 5, authorizes school districts to issue bonds for the acquisition or improvement of school facilities, including gymnasiums, athletic fields, stadiums, garages, academic instruction, physical and vocational education, and administration. A school district may acquire sites for school buildings or garages using the power of eminent domain if necessary (Minn. Stat. § 123B.51, subd. 1, and § 123B.74). The school district may also authorize the use or lease of school facilities for other purposes (subdivisions 2-4).

Sources:

Minnesota Statutes, section 123B.02, subdivisions 1-2, 7-8

Minnesota Statutes, section 123B.51, subdivisions 1-4

Minnesota Statutes, section 123B.74

Minnesota Statutes, section 475.52, subdivision 5

What is the district's current credit rating?

S&P Global Ratings recently affirmed Byron Public Schools credit rating. Learn more here.

What is the Finance and Facilities Committee?

The Byron Finance and Facilities Committee (FFC) participates in general financial and facilities planning for the Byron Public Schools. In order to maintain the high standards set by Byron School Board, the FFC focuses on ways to enhance available resources to achieve our district's mission. Learn more here.

What is and how does Open Enrollment work?

Open enrollment is Minnesota’s public school choice option that allows students and parents to have access to schools that are not within their resident district. By law (Minn. Stat. § 124D.03), this program allows student enrollment from one school district into another. Learn more here.

Does Open Enrollment impact Debt Service Equalization Aid?

Yes. Debt Equalization Aid is intended to help offset or “equalize” variation in school district property taxes due to districts’ varying levels of property wealth. Byron is a district that has lower property wealth per pupil (total property value of the district divided by total adjusted pupil units) and higher voter approved debt for capital projects are eligible for aid. As the number of students served increases, including open enrolled students, property wealth per pupil is reduced, as there are more students to spread the total value. As property wealth per pupil is reduced, the level of state aid increases in Byron.

In fiscal year 2019 Byron Public Schools served 414.68 open enrolled opt in students, which lowers the property wealth per pupil. This is measured against the state average adjusted net tax capacity to determine aid. The debt levy that qualifies for the equalization program must exceed 15.74% of a districts’ tax base each year. Currently, Byron has sufficient debt payments that exceed this local effort and therefore qualifies for debt equalization aid.

With the passage of a proposed $58 million bond issue, a greater percent of Byron's debt payments will qualify for aid. As a result, the number of open enrolled students has a notable impact on the amount of debt equalization aid the district will receive. A loss in debt equalization aid results in a corresponding increase in debt service taxes, given that the principal and interest payments on the existing debt remains constant.

ESTIMATED DEBT EQUALIZATION AID EXAMPLE

What are the timelines and processes for a referendum?

Review current timelines and processes here.

Demographic Study

An enrollment study was conducted by Hazel Reinhardt in 2017. Learn more here.

Guide For Planning Minnesota Construction Projects

The state of Minnesota has the constitutional responsibility for education and the equality of opportunity for students to learn and that includes the physical environment that school facilities provide for learning and teaching. Decisions on school construction projects in Minnesota are a state and local school district matter and there have been and are laws, rules, codes, standards, and guidelines governing the school construction process that go back to the 1800s. Similarly, there are laws, rules, codes, standards, and guidelines governing the construction of homes and commercial buildings, health hospital and nursing home practices, food preparation in restaurants, purification of water, road improvements, and practices by doctors, lawyers, government agencies, and businesses. Learn more here.