2014 Election Ballot Mill Levy Override #3A For the Elizabeth School District Explained

1. 2014 Election Ballot Mill Levy Override #3A For the Elizabeth School District Explained

2. Todd Snidow snidow@gkbaum.com What is a Mill Levy Override? MILL LEVY OVERRIDE: Property taxes collected above the level directed by the Public School Finance Act (PSFA) of 1994. This money is locally authorized and used to address local educational priorities. • The Colorado Taxpayer Bill of Rights (TABOR) requires voter approval to collect tax revenue in excess of that required by the PSFA. • In the upcoming election, voters residing in the Elizabeth School District will be asked to authorize a Mill Levy Override in order to provide funding to partially offset state funding shortfalls and address local priorities. • State funding shortfalls (which have, over a five year period, reached a cumulative amount of ~$13 million) have impacted the quality of education, forced pay freezes and workforce reductions, severely limited the ability to maintain our infrastructure, and required large expenditures of our finite reserves.

3. Impact of Reduced Funding NEGATIVE FACTOR: The amount below the funding level required by Amendment 23 to the Colorado State Constitution. • Flat / Declining state-level standardized test scores • Pay Freezes and work force reductions • Teacher turnover grew to over 30%* • Over 100% turnover in 5 years • Greatly reduced funding for maintenance and upkeep of facilities • Upgrades to classroom and instructional technology minimized • Implementation of safety and security measures delayed *Average annual teacher turnover in Colorado is <15%

4. Can We Reduce These Impacts? The district has determined that a partial offset of the $2.6 million annual shortfall in state-level funding would do much to reduce the negative impacts on education. The board has proposed a $1 million annual mill levy override to be allocated specifically to: • Attract and retain quality teachers • Allow the district to better compete with nearby and larger districts for the best teachers. • Modernize classroom and instructional technology • Replace aging/obsolete computers and increase network capabilities • Improve safety and security for staff and students • Establish district wide School Resource Officer program in coordination with local law enforcement agencies

5. What Will it Cost Taxpayers? The School Board requests the voters approve an override $1 million annually for the next five years. • Based on the total assessed value of property within the district, this equates to an additional levy of approximately 6.6 mills. • For home owners this will equate to: • approximately $4.32 per month (or $52 annually) per $100K of assessed home value , or • approximately $180 per year for the average priced home. • For business property owners, the cost will be approximately $220 per year for each $100K of assessed property value. This amount will be collected for a period of five years and, if still required, can only be authorized to continue by a vote of the people of the district.

6. How do Voters Authorize? A vote of “YES on 3A” will authorize the district to collect $1 million per year for a period of five years in order to address specific general funding needs. • The ballot question is complex, but includes all language needed to ensure the School Board can meet the urgent operational needs of the district. • The ballot language specifies: • the maximum amount to be collected • the operational needs to be funded • the period during which this increase will be in effect, and the maximum interest rate to be paid. • a Citizen Oversight Committee will be established to monitor the use of all taxpayer dollars authorized. Carefully read the ballot question and the additional information provided in the “Blue Book” that the county will provide. Contact a board member if you have any questions or concerns.

7. Understanding the Ballot Question In order to ensure the School Board can meet the urgent operational needs of the district, the ballot question was carefully written. Though complex, it - • Meets the legal requirements of the Taxpayer Bill of Rights (TABOR) • Provides the purpose of the measure and outlines the operational needs to be funded • Contains a “sunset” provision to ensure that voters have the opportunity to assess both the impact of the additional funding and continuing need after a five year period. NOT A PERPETUAL TAX INCREASE. • Explains how funds will be controlled and transparency will be provided to the public The following slides explain all the language in the ballot question in detail.

8. The Mill Levy Override Question BALLOT QUESTION A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES INCLUDING: • PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; • PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; • PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF; PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND; AND SHALL THE DISTRICT BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?

9. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES…

10. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… TABOR Required Language TABOR: Taxpayer Bill of Rights

11. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… TABOR Required Language • Authorization for a tax levy increase.

12. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… TABOR Required Language • Authorization for a tax levy increase. • Amount to be collected in the first year.

13. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… TABOR Required Language • Authorization for a tax levy increase. • Amount to be collected in the first year. • Amount to be collected in subsequent years.

14. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… “Sunset” Provision • Specifies that the measure is authorized for only 5 years.

15. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… “Sunset” Provision • Specifies that the measure is authorized for only 5 years. • Specifies that only a vote of the people can extend the measure.

16. The Bond Question ExplainedBALLOT QUESTION 3A SHALL ELIZABETH SCHOOL DISTRICT C-1 TAXES BE INCREASED $1 MILLION IN TAX COLLECTION YEAR 2015, AND THEN REMAIN AT $1 MILLION ANNUALLY THEREAFTER THROUGH AND INCLUDING TAX COLLECTION YEAR 2019 (SUBJECT TO VOTER APPROVED REAUTHORIZATION AFTER 2019), TO BE USED FOR EDUCATIONAL PURPOSES… Purpose of Funding

17. The Bond Question ExplainedBALLOT QUESTION 3A …INCLUDING: • PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; • PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; • PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF;

18. The Bond Question ExplainedBALLOT QUESTION 3A …INCLUDING: • PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; • PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; • PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF; Voter Authorized Spending

19. The Bond Question ExplainedBALLOT QUESTION 3A …INCLUDING: • PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; • PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; • PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF; Voter Authorized Spending • Allows the district to better compete with nearby and larger districts for the best teachers.

20. The Bond Question ExplainedBALLOT QUESTION 3A …INCLUDING: • PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; • PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; • PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF; Voter Authorized Spending • Allows the district to better compete with nearby and larger districts for the best teachers. • Supports replacing aging/obsolete computers and increase network capabilities.

21. The Bond Question ExplainedBALLOT QUESTION 3A …INCLUDING: PROVIDING FUNDING TO ATTRACT AND RETAIN TALENTED TEACHERS; PROVIDING INCREASED INSTRUCTIONAL AND CLASSROOM TECHNOLOGY; PROVIDING FOR INCREASED SAFETY AND SECURITY MEASURES FOR STUDENTS AND STAFF; Voter Authorized Spending • Allows the district to better compete with nearby and larger districts for the best teachers. • Supports replacing aging/obsolete computers and increase network capabilities. • Provides for district-wide School Resource Officer (RSO) program in coordination with local law enforcement agencies

22. The Bond Question ExplainedBALLOT QUESTION 3A PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND;

23. The Bond Question ExplainedBALLOT QUESTION 3A PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND; Control and Transparency

24. The Bond Question ExplainedBALLOT QUESTION 3A PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND; Control and Transparency • Directs the establishment of a Citizen’s Oversight Committee to monitor expenditures of tax dollars authorized for collection by this measure

25. The Bond Question ExplainedBALLOT QUESTION 3A PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND; Control and Transparency • Directs the establishment of a Citizen’s Oversight Committee to monitor expenditures of tax dollars authorized for collection by this measure • Specifies that this tax is in addition to that required by the PSFA

26. The Bond Question ExplainedBALLOT QUESTION 3A PROVIDED, HOWEVER THAT SUCH EXPENDITURES SHALL BE MONITORED BY A BOARD APPOINTED CITIZEN’S OVERSIGHT COMMITTEE; AND SHALL SUCH TAX INCREASE BE AN ADDITIONAL PROPERTY TAX MILL LEVY IN EXCESS OF THE LEVY AUTHORIZED FOR THE DISTRICT’S GENERAL FUND; Control and Transparency • Directs the establishment of a Citizen’s Oversight Committee to monitor expenditures of tax dollars authorized for collection by this measure • Specifies that this tax is in addition to that required by the PSFA • Specifies these taxes augment the district’s general fund

27. The Bond Question ExplainedBALLOT QUESTION 3A AND SHALL THE DISTRICT BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?

28. The Bond Question ExplainedBALLOT QUESTION 3A AND SHALL THE DISTRICT BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? Funds above the TABOR limit

29. The Bond Question ExplainedBALLOT QUESTION 3A AND SHALL THE DISTRICT BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? Funds above the TABOR limit • Specifies that any money collected is authorized over and above any limit specified by the Taxpayer Bill of Rights.