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ARDEN HILLS CITY COUNCIL WORK SESSION SEPTEMBER 20, 2010 2 Greg Madsen explained that the school district wanted to advise the Council that they will be seeking renewal of a no -tax increase levy. He then reviewed several facts about the success of the Mounds View school district: high performing, residents care deeply about the quality of the schools, above average ACT scores for Mounds View students, Irondale and Mounds View have been named by Newsweek in the top 5% of the schools in the nation, and district students perform one to three grade levels above national norms on standardized tests. Mr. Madsen further stated that a community survey was conducted in the spring and 83% of the community residents believe the quality of Mounds View Schools education is excellent l good; 85% believe they receive a good value from their investment; 80% would be proud to recommend the Mounds View schools to others. Mr. Madsen stated the $6 million expiring levy was approved in 2003 and makes up 5% of the total operating budget. He reviewed the decline in state funding to schools pointing out that in 2007 Minnesota spent 1.3% less than the national average per pupil. In 1995, Minnesota ranked 15 in school spending. In 2007, Minnesota had dropped to 42 in the nation. Mr. Tynjala referred to the community survey and explained that 87% of residents believe the budget problems are likely to get worse in the next few years. The school district has made the following reductions since the 2003 levy: closed two schools, cut 160 teachers at a savings of $7.1 million, and cut 33 staff members at a savings of $3.1 million. Additional cost saving measures include: the refund of long -term debt for interest savings of $4.5 million, $800,000 savings in energy expenses, and an increase in user fees such as facility rentals and bus fees. Mr. Tynjala reviewed additional costs containing measures such as budget reductions, controlling administrative costs, and settling labor contracts in mid market. He explained the 2003 levy will expire in 2011 at which time the schools will stop receiving about $6 million a year. The school board decided to ask voters to renew this levy with no increase in taxes. The impact of the 2003 levy was $76 for every $100,000 of taxable market value annually and in 2010 it will be $70 for every $100,000 of taxable market valuable annually. He stated that 90% of the school districts in the state have voter approved levies and rely on those levies for crucial funding. He explained that a successful levy will maintain class sizes and programs, does not provide extras, and will not prevent future reductions as funding conditions are unpredictable. Councilmember Grant commented that he does hear negative comments from residents regarding the bus fees. Superintendent Hoverman explained that the bus fees do not cover the entire transportation cost. Councilmember Holden questioned what percentage of their budget is for salaries. Superintendent Hoverman replied that 80% goes to salaries.