Financial Section III

Transcription

1 Financial Section III ANNUAL BUDGET SECTIONS EXECUTIVE SUMMARY ORGANIZATIONAL SECTION FINANCIAL SECTION INFORMATIONAL SECTION s are financial planning and decision-making documents. They contain information to assist public officials with revenue-raising and spending decisions. Because budgets are financial documents, they place heavy emphasis on the presentation of financial data and more specifically, budgetary data. This Financial Section presents the heart of the school budget document - the budget financial schedules. These schedules present the past, present and future budgets for our school district. Financial Section 79

2 In the pages that follow, the reader is provided with additional, detailed analysis and discussion regarding the budget and beyond, for each individual fund. These individual budgets are influenced by trends, events and initiatives as well as financial and demographic changes specific to that fund. Obviously, some of these influence all funds across the District. Among them are enrollment growth, state funding (BASE) and Bond Olathe Public Schools is a District of growth having increased in size every consecutive year since its consolidation in With increasing enrollment comes increasing pressure for additional revenue to provide adequate learning spaces and experiences. On July 1, 2017, a new funding formula went into effect for Kansas school districts, replacing a Block Grant under which our funding, as well as the funding of all districts across Kansas, were essentially frozen at funding levels. While providing much needed additional funding, this new formula produces less per pupil funding than our district had prior to the funding declines that began in The following pages show the budget schedules for all budgeted funds within the District. In each schedule, information for four prior years, the budget year for and projected budgets for the following three years are presented. Olathe Public Schools Annual All District Funds by Function and Object The format for the budget schedules is presented in summarized form followed by detail. The following schedules are provided: Proposed Motor/w Vehicles Taxes 9,407,385 9,484,361 9,697,308 10,060,671 10,305,994 10,339,187 10,394,458 10,429,349 Tuition 250, , , , , , , ,611 Fees 2,000,547 2,100,118 2,128,477 2,101,502 2,124,253 2,149,896 2,176,015 2,202,626 Meal Sales 6,414,670 6,629,024 6,703,924 6,544,561 8,244,443 8,326,887 8,410,156 8,494,258 Contributions and Donations 810, , , , , , , ,258 Other 1,931,650 21,349,356 46,305,384 49,164,750 44,248,347 44,362,355 44,558,920 44,788,402 Reimbursements 4,969,758 5,856,021 6,325,139 3,746,796 4,224,250 4,308,735 4,394,910 4,482,808 Revenue From Other Funds 786,037 1,339,102 1,502,221 1,316,451 1,230,500 1,027,807 1,027,807 1,027,807 County Ad Valorem Tax 73,309,420 76,285,122 83,848,835 94,505,574 91,584,224 91,999,880 92,797,897 93,434,855 State General State Aid 160,206, ,352, ,684, ,682, ,219, ,791, ,449, ,049,549 Supplemental State Aid 27,920,506 27,920,506 27,270,578 24,648,037 29,744,548 30,339,439 30,946,228 31,565,152 Special Education Aid 25,504,119 26,392,649 26,628,245 27,808,476 31,983,015 32,615,513 33,268,191 33,935,139 KPERS State Aid 0 15,910,354 15,546, Capital Outlay State Aid 0 2,144, Federal Medicaid/Grants/Title Programs 12,183,192 11,296,456 11,685,559 12,672,431 16,056,813 12,935,120 12,998,049 12,932,533 Child Nutrition Aid 5,053,024 5,425,216 5,633,276 5,452,173 5,712,665 5,712,665 5,712,665 5,712,665 Federal Tax Credits 2,891,327 2,837,371 2,775,310 2,698,682 2,787,860 1,909,892 1,085, ,955 Other , , TOTAL 333,639, ,399, ,346, ,646, ,597, ,977, ,365, ,124,966 Instructional Services Employee Salaries & Benefits 158,700, ,558, ,349, ,870, ,890, ,486, ,372, ,336,234 Insurance 26, , , , , , , ,794 Professional & Technical Services 431, , , ,185 1,762,648 1,758,186 1,769,554 1,774,835 Other Purchased Services 2,835,161 3,212,076 3,855,200 4,032,815 4,607,951 4,578,269 4,581,332 4,590,186 Supplies & Materials 4,088,790 4,293,510 4,746,798 5,002,551 6,741,706 6,976,882 6,760,461 6,563,574 Textbook & Instructional Resources 1,854,209 1,622,771 1,793,042 1,750,915 1,872,243 1,905,400 1,942,853 1,906,832 Equipment 9,195,778 4,658,931 3,023,329 5,351,456 7,295,106 4,058,429 4,080,348 3,644,790 Other 7,442 10,738 13,647 17,968 22,500 22,838 23,180 23,528 Support Services- Students Employee Salaries & Benefits 19,819,455 20,475,368 21,171,963 23,043,398 24,166,666 24,636,093 25,114,640 25,602,985 Professional & Technical Services 308, , , , , , , ,588 Other Purchased Services 110,952 48,709 48,674 52,870 59,913 62,703 62,320 61,767 Supplies & Materials 76, , , , , , , ,780 Equipment 29,113 41,276 29,724 51,276 39,296 39,296 39,296 39,296 Other 0 2,058 4,612 6,462 5,800 5,800 5,800 5,800 Support Services- Instruction Employee Salaries & Benefits 9,278,108 8,874,448 9,064,782 10,344,463 10,848,930 11,041,674 11,251,947 11,481,185 Professional & Technical Services 343, , , , , , , ,016 Other Purchased Services 63,250 82,643 69,051 93,633 74,625 82,669 84,974 80,873 Supplies & Materials 999,331 1,084,413 1,121,427 1,186,905 1,411,626 1,288,167 1,319,873 1,339,889 Equipment 18,500 22, ,297 64,200 1,008, , , ,544 Other Financial Section

3 All District Funds by Function and Object Proposed (continued) Support Services- General Administration Employee Salaries & Benefits 1,031,071 1,485,894 1,547,798 1,530,632 1,639,586 1,672,338 1,705,744 1,739,819 Insurance 258, , , , , , , ,666 Professional & Technical Services 160, ,740 73,786 29,551 57,000 57,000 57,000 57,000 Other Purchased Services 52,830 69, , ,432 89,620 89,620 89,620 89,620 Supplies & Materials 85,036 85,909 82,080 61,975 69,600 69,600 69,600 69,600 Equipment 1, ,210 1, Other 23,805 25,044 53,552 49,995 58,000 58,000 58,000 58,000 Support Services- School Administration Employee Salaries & Benefits 15,213,413 17,014,830 17,857,486 19,240,293 20,449,921 20,858,036 21,274,332 21,698,972 Professional & Technical Services 16,638 15,520 16,582 22,936 24,100 24,594 25,078 25,580 Other Purchased Services 156, , , , , , , ,233 Supplies & Materials 5,792 6,138 23,228 6,541 9,550 9,122 9,103 9,258 Equipment 2,700 1,204 3,351 2,288 2,850 2,850 2,850 2,850 Central Services Employee Salaries & Benefits 5,484,096 6,058,676 6,543,127 6,131,371 6,415,832 6,542,563 6,671,828 6,803,679 Insurance 169, , , , , , , ,007 Contracted Services-Copiers 907,770 1,000,486 1,078,073 1,842,678 1,307,079 1,227,217 1,458,991 1,331,096 Professional & Technical Services 547,774 1,619,705 1,727,186 2,112,945 2,437,920 2,438,040 2,438,162 2,438,287 Other Purchased Services 62,503 44,985 14,258 90, , , , ,850 Supplies & Materials 87,866 90,288 85,060 88, , , , ,800 Equipment 4,374 45, ,834 15,793 39,937 39,954 39,972 39,990 Other 73,344 15,376 18,656 19,496 55,300 55,300 55,300 55,300 Operations & Maintenance Services Employee Salaries & Benefits 12,023,642 11,461,445 10,942,168 11,911,242 14,708,959 14,997,698 15,292,532 15,593,097 Insurance 718, , , , , , , ,657 Repairs & Contracted Services 1,700,279 1,685,197 1,717,165 3,233,615 6,138,621 2,921,980 2,612,451 2,891,018 Professional & Technical Services 1,701,350 2,599,812 3,565,801 3,902,224 2,200, , , ,231 Other Purchased Services 780, , , , , , , ,186 Supplies & Materials 1,437,705 1,234,941 1,050,986 1,551,699 2,167,756 2,212,805 2,177,576 2,186,144 Utilities 6,323,925 6,365,373 6,717,085 6,989,397 8,215,595 8,216,981 7,724,159 7,231,037 Transportation Fuel 11,442 8,356 7,106 7,287 6,800 6,868 6,937 7,006 Other 1,151 1,158 1, ,000 1,000 1,000 1,000 Equipment 435, , , ,590 1,000, , , ,861 Transportation Services Employee Salaries & Benefits 50,978 52,027 85, , , , , ,052 Transportation Services 10,216,370 11,628,848 12,000,499 13,009,587 15,048,185 15,243,577 15,467,539 15,698,383 Other Purchased Services 5, ,500 4,568 4,636 4,706 Supplies & Materials 1, ,735 2,500 2,500 2,500 2,500 2,500 Transportation Fuel 827, , , ,616 1,030,800 1,045,412 1,060,256 1,075,337 Food Services Employee Salaries & Benefits 5,309,777 5,436,085 5,535,679 6,424,413 6,925,750 7,131,273 7,342,961 7,560,999 Professional & Technical Services 152, , , , , , , ,789 Other Purchased Services 77, , , , , , , ,253 Supplies & Materials 6,179,678 6,227,973 6,340,625 6,104,851 6,867,240 6,437,572 6,469,888 6,591,567 Equipment 276, , , , , , , ,029 Site Improvements Benefit District Charges 746, , , ,695 1,420, ,711 1,045,229 1,095,784 Purchased Property Services 4,188 9,959 75,867 18,484 34,770 43,040 32,098 36,636 Facilities and Construction Services Site Acquisitions 698, , , ,936 1,500,000 1,500,000 1,500,000 1,500,000 Facility Improvement While the adequacy of funding is still under review by the Kansas Supreme Court and we remain hopeful for additional income in the future, future budgets have been conservatively prepared assuming no additional funding ordered by the Supreme Court. In, one of the District s key focuses will be completion of projects promised as part of Bond 2016 that was passed by voters in June, This $156 million worth of projects includes a tenth middle school, thirtysixth elementary and renovations of all buildings. Summit Trail Middle School, our tenth middle school, will open August, Construction continues on Canyon Creek Elementary, our 36th elementary school, and is expected to open August, These projects are critical to providing positive learning spaces for students to excel. Note: All District Funds does not include the Flow-Through Funds (KPERS, Extraordinary Growth, Cost of Living and Agency) or Construction Funds. Repairs & Contracted Services 1,302,641 2,394,981 1,360, ,980 3,000,000 1,744,298 1,802,426 2,182,241 Bond & Interest Payments Bond Principal Payments 28,182,945 29,707,945 30,447,944 29,932,945 28,407,945 29,117,945 30,482,945 33,247,945 Bond Interest Payments 21,991,140 20,898,349 21,833,097 23,119,466 24,867,716 22,744,508 21,000,614 18,650,106 Other Bond Costs 148,956 91, , ,548 1,750, , , ,001 TOTAL 333,838, ,888, ,939, ,286, ,729, ,109, ,575, ,848,663 Beginning Fund Balance 87,633,735 87,435,075 99,035, ,895, ,255, ,123, ,241, ,280,888 Excess of over (198,661) 27,510,823 32,406,858 11,359,526 (8,132,336) 868,096 (3,210,219) (7,723,696) Transfer to Operating Fund(s) (195,282) (28,127,561) (4,959,652) (269,312) (250,000) Transfer to KPERS 0 (15,910,354) (15,546,581) Transfer from Capital Outlay 0 0 4,747, Transfer from Operating Fund(s) 195,282 28,127, , , , , , ,000 ENDING FUND BALANCE 87,435,074 99,035, ,895, ,255, ,123, ,241, ,280, ,807,192 Financial Section 81

4 State General Aid is increasing due to the increase in per pupil funding from $4,006 to $4,165. are increasing mainly as a result of compensation increases. After minimal increases in compensation since 2014 under the Block Grant, the District invested its increased funding into returning staff through competitive salaries. FORECAST While total revenues have significantly increased for as a result of additional state funding (BASE), only smaller incremental changes are expected through. will follow a similar pattern. Olathe Public Schools Annual Operating/Dependent Funds by Function and Object Proposed Motor/Recreational Vehicles Taxes 4,387,770 4,384,191 3,865,904 4,227,850 4,132,589 4,256,567 4,384,264 4,515,792 Tuition 172, , , , , , , ,405 Other 540, ,137 1,106, , , , , ,245 Reimbursements 4,969,758 5,856,021 6,325,139 3,746,796 4,224,250 4,308,735 4,394,910 4,482,808 County State Federal Instructional Services Ad Valorem Tax 27,879,681 33,639,137 31,923,402 42,057,941 36,243,379 37,693,114 39,200,839 40,768,872 General State Aid 143,484, ,499, ,897, ,198, ,227, ,227, ,227, ,227,693 Supplemental State Aid 27,920,506 27,920,506 27,270,578 24,648,037 29,744,548 30,339,439 30,946,228 31,565,152 Special Education Aid 25,504,119 26,392,649 26,628,245 27,808,476 31,983,015 32,615,513 33,268,191 33,935,139 KPERS State Aid 0 15,910,354 15,546, Capital Outlay State Aid 0 2,144, Medicaid/Grants 7,959,557 7,025,443 7,106,968 7,523,192 7,187,060 7,277,059 7,339,988 7,274,472 Other , , TOTAL 242,818, ,566, ,265, ,182, ,677, ,626, ,681, ,699,578 Employee Salaries & Benefits 154,724, ,703, ,375, ,987, ,903, ,543, ,256, ,043,231 Professional & Technical Services 318, , , , , , , ,533 Other Purchased Services 2,757,841 3,179,551 3,806,478 3,998,823 4,521,900 4,522,014 4,522,566 4,523,162 Supplies & Materials 3,646,073 3,753,395 3,976,805 4,416,580 4,931,639 4,920,435 4,931,561 4,933,270 Equipment 139, , , , , , , ,868 Other 7,442 10,738 13,647 17,968 22,500 22,838 23,180 23,528 Support Services- Students Employee Salaries & Benefits 19,802,772 20,467,198 21,162,455 23,042,127 24,163,877 24,633,207 25,111,915 25,600,185 Professional & Technical Services 293, , , , , , , ,223 Other Purchased Services 83,190 32,315 23,028 27,761 38,260 38,568 38,687 38,627 Supplies & Materials 46, , , , , , , ,146 Equipment 29,113 41,276 29,724 51,276 39,296 39,296 39,296 39,296 Other 0 2,058 4,612 6,462 5,800 5,800 5,800 5,800 Support Services- Instruction Employee Salaries & Benefits 8,892,486 8,532,317 8,896,840 10,195,233 10,762,294 10,952,649 11,160,461 11,387,164 Professional & Technical Services 286, , , , , , , ,407 Other Purchased Services 52,251 72,729 57,171 61,451 66,400 65,240 65,695 65,896 Supplies & Materials 958, ,962 1,005,919 1,054,224 1,080,538 1,095,074 1,100,920 1,092,177 Equipment 4,451 11,150 6,447 4,198 8,500 8,500 8,500 8,500 Other Support Services- General Administration Employee Salaries & Benefits 1,031,071 1,485,894 1,547,798 1,530,632 1,637,586 1,670,338 1,703,744 1,737,819 Professional & Technical Services 160, ,740 73,786 29,551 57,000 57,000 57,000 57,000 Other Purchased Services 52,830 69, , ,432 89,620 89,620 89,620 89,620 Supplies & Materials 85,036 85,909 82,080 61,975 69,600 69,600 69,600 69,600 Equipment 1, ,210 1, Other 23,805 25,044 53,552 49,995 58,000 58,000 58,000 58,000 Support Services- School Administration Employee Salaries & Benefits 15,032,976 16,846,210 17,650,118 19,046,179 20,221,621 20,625,039 21,036,511 21,456,197 Professional & Technical Services 16,638 15,520 16,582 22,936 24,100 24,594 25,078 25,580 Other Purchased Services 156, , , , , , , ,233 Supplies & Materials 5,385 4,839 22,097 5,956 8,050 8,050 8,050 8,050 Equipment 2,700 1,204 3,351 2,288 2,850 2,850 2,850 2,850 Central Services Employee Salaries & Benefits 5,407,768 5,986,118 6,400,013 5,988,084 6,271,266 6,396,691 6,524,625 6,655,118 Professional & Technical Services 540,758 1,611,826 1,719,991 2,104,945 2,429,920 2,429,920 2,429,920 2,429,920 Other Purchased Services 62,503 44,985 14,258 90, , , , ,850 Supplies & Materials 84,302 85,372 80,940 85, , , , ,300 Equipment 0 42,163 37,996 11,574 35,700 35,700 35,700 35,700 Other 73,344 15,376 18,656 19,496 55,300 55,300 55,300 55,300 Operations & Maintenance Services Employee Salaries & Benefits 11,770,513 8,919,024 2,586,574 43,855 44,225 44,670 45,443 46,066 Professional & Technical Services 1,701,350 2,599,812 3,565,801 3,902,224 2,200, , , ,231 Other Purchased Services 763, , , , , , , ,610 Supplies & Materials 145, ,322 83, ,547 1,167,756 1,148,187 1,161,986 1,159,407 Utilities 6,172,202 6,228,579 6,577,028 6,845,688 8,066,595 8,065,001 7,569,140 7,072,917 Equipment 4,488 3,226 13,620 9,323 2,360 2,360 2,360 2,360 Transportation Services Employee Salaries & Benefits 50,978 52,027 85, , , , , ,052 Transportation Services 10,194,394 11,607,754 11,977,286 12,985,268 15,027,385 15,221,737 15,444,607 15,674,304 Other Purchased Services 5, ,500 4,568 4,636 4,706 Supplies & Materials 1, ,735 2,500 2,500 2,500 2,500 2,500 Transportation Fuel 827, , , ,616 1,030,800 1,045,412 1,060,256 1,075,337 TOTAL 246,417, ,833, ,283, ,012, ,365, ,917, ,682, ,529,639 Beginning Fund Balance 21,545,213 17,751,207 19,367,132 18,337,219 19,238,104 20,299,764 21,009,137 20,007,713 Excess of over (3,598,724) 17,733,334 9,982,212 1,170,197 1,311, ,373 (1,001,424) (2,830,061) Transfer To Operating Fund(s) (195,282) (28,127,561) (212,598) (269,312) (250,000) Transfer to KPERS 0 (15,910,354) (15,546,581) Transfer from Capital Outlay 0 0 4,747, Transfer from General Fund 0 27,920, ENDING FUND BALANCE 17,751,207 19,367,132 18,337,219 19,238,104 20,299,764 21,009,137 20,007,713 17,177, Financial Section

5 Restricted/Independent Funds by Function and Object Motor/Recreational Vehicles Taxes 43,549 48,396 48,718 46,507 37,679 41,447 45,592 50,151 Tuition 77, ,861 63,421 79,604 80,000 80,400 80,802 81,206 Fees 2,000,547 2,100,118 2,128,477 2,101,502 2,124,253 2,149,896 2,176,015 2,202,626 Meal Sales 6,414,670 6,629,024 6,703,924 6,544,561 8,244,443 8,326,887 8,410,156 8,494,258 Contributions and Donations 810, , , , , , , ,258 Other 1,162,651 20,467,225 35,941,144 40,134,677 42,509,755 42,524,041 42,538,469 42, 553, 041 Revenue From Other Funds 786,037 1,339,102 1,502,221 1,316,451 1,230,500 1,027,807 1,027,807 1,027,807 County Ad Valorem Taxes 365, , , , , , , ,659 State State Aid 159, , , , , , , ,217 Federal: Grants/Title Programs 4,223,635 4,271,013 4,578,591 5,149,239 8,869,753 5,658,061 5,658,061 5,658,061 Child Nutrition Aid 5,053,024 5,425,216 5,633,276 5,452,173 5,712,665 5,712,665 5,712,665 5,712,665 TOTAL 21,097,218 41,751,904 58,057,316 62,220,328 70,169,639 66,940,599 67,090,841 67,265,947 Instructional Services Employee Salaries & Benefits 3,976,200 13,855,267 34,974,505 40,882,836 43,986,836 40,942,699 41,115,269 41,293,003 Insurance 26, , , , , , , ,794 Federal and Food Services funds are the largest sources of these revenues, which combined are projected to increase in. Similarly, expenditures of Federal and Food Services funds are projected to increase in. FORECAST Total revenues and expenditures are expected to be relatively flat after experiencing an increase in for the addition of several, multi-year grants. Professional & Technical Services 112, ,492 71, ,914 1,357,691 1,347,812 1,353,654 1,353,302 Other Purchased Services 77,320 32,526 48,722 33,992 86,051 56,255 58,766 67,024 Supplies & Materials 442, , , ,971 1,810,067 2,056,447 1,828,900 1,630,304 Textbooks & Instructional Resources 1,854,209 1,622,771 1,793,042 1,750,915 1,872,243 1,905,400 1,942,853 1,906,832 Equipment 88,285 74, , , , , , ,817 Support Services- Students Employee Salaries & Benefits 16,683 8,170 9,508 1,271 2,789 2,885 2,725 2,800 Professional & Technical Services 15,282 18,874 25,802 20,323 17,335 21,153 19,604 19,364 Other Purchased Services 27,762 16,394 25,646 25,108 21,653 24,136 23,632 23,140 Supplies & Materials 29,348 20,664 19,269 20,104 19,520 19,631 19,752 19,634 Support Services- Instruction Employee Salaries & Benefits 385, , , ,230 86,636 89,025 91,486 94,021 Professional & Technical Services 56, , , , , , , ,609 Other Purchased Services 10,999 9,914 11,881 32,182 8,225 17,429 19,279 14,978 Supplies & Materials 41, , , , , , , ,711 Support Services- General Administration Employee Salaries & Benefits ,000 2,000 2,000 2,000 Insurance 258, , , , , , , ,666 Support Services- School Administration Employee Salaries & Benefits 180, , , , , , , ,775 Supplies & Materials 407 1,299 1, ,500 1,072 1,053 1,208 Other Purchased Services Central Services Employee Salaries & Benefits 76,328 72,558 82,287 79,300 79,300 79,300 79,300 79,300 Insurance 169, , , , , , , ,007 Professional & Technical Services 7,017 7,880 7,195 8,000 8,000 8,120 8,242 8,367 Other Purchased Services Supplies & Materials 3,564 4,915 4,120 3,500 3,500 3,500 3,500 3,500 Equipment 4,374 3,072 1,938 2,500 2,500 2,500 2,500 2,500 Operations & Maintenance Services Employee Salaries & Benefits 253, , , , , , , ,000 Insurance 718, , , , , , , ,657 Repairs & Contracted Services 15,956 12,708 16,551 2,563 45,700 45,700 45,700 45,700 Other Purchased Services 17,514 15,221 13,913 18,818 19,000 19,190 19,382 19,576 Utilities 151, , , , , , , ,120 Transportation Fuel 11,442 8,356 7,106 7,287 6,800 6,868 6,937 7,006 Other 1,151 1,158 1, ,000 1,000 1,000 1,000 Transportation Services Supplies & Materials Transportation Services 21,976 21,095 23,213 24,319 20,800 21,840 22,932 24,079 Food Services Employee Salaries & Benefits 5,309,777 5,436,085 5,535,679 6,424,413 6,925,750 7,131,273 7,342,961 7,560,999 Professional & Technical Services 152, , , , , , , ,789 Other Purchased Services 77, , , , , , , ,253 Supplies & Materials 6,179,678 6,227,973 6,340,625 6,104,851 6,867,240 6,437,572 6,469,888 6,591,567 Equipment 276, , , , , , , ,029 Site Improvements Purchased Property Services 4,188 9,959 75,867 18,484 34,770 43,040 32,098 36,636 TOTAL 21,052,399 31,618,979 53,167,861 59,447,069 67,037,934 63,729,291 64,046,974 64,448,067 Beginning Fund Balance 6,217,758 6,457,860 16,797,839 21,899,893 24,942,463 28,324,167 31,785,475 35,079,343 Excess of over 44,819 10,132,924 4,889,456 2,773,259 3,131,704 3,211,309 3,043,868 2,817,882 Transfer From Operating Fund(s) 195, , , , , , , ,000 ENDING FUND BALANCE 6,457,859 16,797,839 21,899,893 24,942,463 28,324,167 31,785,476 35,079,342 38,147,225 Financial Section 83

6 Capital Outlay and Bond and Interest funds make up the majority of these revenues. The decrease in projected revenue is mainly caused by the decrease in Federal tax credits Both Capital Outlay and Bond and Interest expenditures are projected to decrease due to the unusually high expenditures for capital projects and the purchase of technology in. FORECAST Debt Service expenditures will remain near levels. Capital expenditures will return to pre- levels. Capital Improvement includes both Capital Outlay & Construction. Olathe Public Schools Annual Capital Improvement & Debt Service by Function and Object Proposed Motor/Recreational Vehicles Taxes 4,976,066 5,051,774 5,782,686 5,786,314 6,135,726 6,041,174 5,964,603 5,863,407 Other 228, ,994 9,257,355 8,342, ,941 1,102,904 1,277,929 1,486,116 County Ad Valorem Taxes 45,064,292 42,257,703 51,612,198 52,113,281 55,018,036 53,951,676 53,206,459 52,236,324 State State Aid 16,563,206 13,696,838 18,596,277 17,303,134 14,834,898 14,404,634 14,059,215 13,656,640 Federal Federal Tax Credits 2,891,327 2,837,371 2,775,310 2,698,682 2,787,860 1,909,892 1,085, ,955 TOTAL 69,723,442 64,080,680 88,023,826 86,243,677 79,750,461 77,410,279 75,593,400 74,159,440 Instructional Services Support Services - Instructional Central Services Equipment 8,967,645 3,987,617 2,202,634 4,554,792 6,500,000 3,242,537 3,265,776 2,836,105 Equipment 14,049 11,590 94,850 60,001 1,000, , , ,044 Employee Salaries & Benefits ,827 63,986 65,266 66,572 67,903 69,261 Contracted Services- Copiers 907,770 1,000,486 1,078,073 1,842,678 1,307,079 1,227,217 1,458,991 1,331,096 Equipment- Technology ,900 1,720 1,737 1,754 1,772 1,790 Operations & Maintenance Services Employee Salaries & Benefits 0 2,102,726 8,115,111 11,617,387 14,414,734 14,703,028 14,997,089 15,297,031 Repairs & Contracted Services 1,684,324 1,672,489 1,700,614 3,231,052 6,092,921 2,876,280 2,566,751 2,845,318 Supplies & Materials 1,292,630 1,080, , ,152 1,000,000 1,064,618 1,015,590 1,026,736 Equipment 431, , , , , , , ,501 Site Improvements Benefit District Charges 746, , , ,695 1,420, ,711 1,045,229 1,095,784 Facilities and Construction Services Site Acquisitions 698, , , ,936 1,500,000 1,500,000 1,500,000 1,500,000 Facility Improvement Repairs & Contracted Services 1,302,641 2,394,981 1,360, ,980 3,000,000 1,744,298 1,802,426 2,182,241 Bond & Interest Payments Bond Principal Payments 28,182,945 29,707,945 30,447,944 29,932,945 28,407,945 29,117,945 30,482,945 33,247,945 Bond Interest Payments 21,991,140 20,898,349 21,833,097 23,119,466 24,867,716 22,744,508 21,000,614 18,650,106 Other Bond Costs 148,956 91, , ,548 1,750, , , ,001 TOTAL 66,368,198 64,436,115 70,488,635 78,827,606 92,326,161 80,462,864 80,846,062 81,870,957 Beginning Fund Balance 59,870,764 63,226,008 62,870,573 75,658,708 83,074,778 70,499,078 67,446,494 62,193,832 Excess of over 3,355,244 (355,435) 17,535,190 7,416,070 (12,575,700) (3,052,585) (5,252,662) (7,711,517) Transfer to General Fund 0 0 (4,747,054) ENDING FUND BALANCE 63,226,008 62,870,573 75,658,708 83,074,778 70,499,078 67,446,494 62,193,832 54,482, Financial Section

7 County State Flow Through Funds by Function and Object Proposed Motor/Recreational Vehicles Taxes 1,724,773 1,757,858 1,839,034 1,993,935 1,980,412 3,019,358 2,768,912 2,439,765 Other Ad Valorem Taxes 13,308,064 15,706,504 15,337,757 20,014,777 26,653,791 32,115,639 29,107,932 25,172,459 State Aid 18,887, ,486,840 33,897,133 34,575,076 35,266,577 35,971,909 TOTAL 33,920,369 17,464,363 17,176,791 46,495,552 62,531,336 69,710,072 67,143,422 63,584,133 State Reimbursement 34,174,890 33,541,633 32,363,026 46,614,550 63,101,583 69,710,072 67,143,422 63,584,133 TOTAL 34,174,890 33,541,633 32,363,026 46,614,550 63,101,583 69,710,072 67,143,422 63,584,133 Beginning Fund Balance 750, , , , , Excess of over (254,521) (16,077,270) (15,186,235) (118,998) (570,247) Transfer From General Fund 0 15,910,354 15,546, ENDING FUND BALANCE 495, , , , Financial Section 85

8 Operating/ Dependent All District Fund Types Summary Approved s by Function and Object All District Funds Restricted/ Independent Capital Improvement & Debt Service Motor/Recreational Vehicles Taxes 4,132,589 37,679 6,135,726 10,305,994 Tuition 170,000 80, ,000 Fees 0 2,124, ,124,253 Meal Sales 0 8,244, ,244,443 Contributions and Donations 0 880, ,762 Other 764,650 42,509, ,941 44,248,347 Revenue From Other Funds 0 1,230, ,230,500 Reimbursements 4,224, ,224,250 County Ad Valorem Tax 36,243, ,809 55,018,036 91,584,224 State General State Aid 178,227, ,227,689 State Aid 0 157,020 14,834,898 14,991,918 Supplemental State Aid 29,744, ,744,548 Special Education Aid 31,963, ,963,719 KPERS State Aid 19,296 19,296 TOTALS Federal Medicaid/Grants 7,187, ,187,060 Grants/Title Programs 0 8,869, ,869,753 Child Nutrition Aid 0 5,712, ,712,665 Federal Tax Credits 0 0 2,787,860 2,787,860 TOTAL 292,677,180 70,169,639 79,750, ,597,280 Instructional Services Employee Salaries & Benefits 183,903,446 43,986, ,890,282 Insurance 0 259, ,145 Professional & Technical Services 404,957 1,281, ,686,496 Other Purchased Services 4,521, , ,015,989 Supplies & Materials 4,931,639 1,490, ,422,191 Textbooks & Instructional Resources 0 1,872, ,872,243 Equipment 688, ,500,000 8,188,583 Other 22, ,500 Support Services- Students Employee Salaries & Benefits 24,163,877 2, ,166,666 Professional & Technical Services 318,808 17, ,143 Other Purchased Services 38,260 41, ,433 Supplies & Materials 150, ,055 Equipment 45, ,096 Support Services- Instruction Employee Salaries & Benefits 10,762,294 86, ,848,930 Professional & Technical Services 417, , ,185 Other Purchased Services 66,400 30, ,670 Supplies & Materials 1,080, , ,389,581 Equipment 8, ,500 Support Services- General Administration Employee Salaries & Benefits 1,637,586 2, ,639,586 Insurance 0 385, ,000 Professional & Technical Services 57, ,000 Other Purchased Services 89, ,620 Supplies & Materials 69, ,600 Other 58, ,000 Support Services- School Administration Employee Salaries & Benefits 20,221, , ,449,921 Professional & Technical Services 24, ,100 Other Purchased Services 156, ,200 Supplies & Materials 8,050 1, ,550 Equipment 2, , Financial Section

9 Operating/ Dependent All District Fund Types Summary Approved s by Function and Object All District Funds Restricted/ Independent Capital Improvement & Debt Service (continued) Central Services Employee Salaries & Benefits 6,271,266 79,300 65,266 6,415,832 Insurance 0 173, ,007 Professional & Technical Services 2,429,920 8, ,437,920 Other Purchased Services 140,850 3, ,350 Supplies & Materials 122,300 2, ,800 Contracted Services - Copiers 0 0 1,307,079 1,307,079 Equipment-Technology 0 0 1,737 1,737 Equipment 35, ,700 Other 55, ,300 TOTALS Note: All District Funds do not include the Flow-Through Funds (KPERS, Extraordinary Growth, Cost of Living and Agency) or Construction Funds. Operations & Maintenance Services Employee Salaries & Benefits 44, ,000 14,414,734 14,708,959 Insurance 0 715, ,316 Repairs & Contracted Services 0 45,700 6,092,921 6,138,621 Professional & Technical Services 2,200, ,200,231 Other Purchased Services 805,610 19, ,610 Supplies & Materials 1,167, ,000,000 2,167,756 Utilities 8,066, , ,215,595 Transportation Fuel 0 6, ,800 Other 0 1, ,000 Equipment 2, ,263 1,000,623 Transportation Services Employee Salaries & Benefits 109, ,358 Transportation Services 15,027,385 20, ,048,185 Other Purchased Services 4, ,500 Supplies & Materials 2, ,500 Transportation Fuel 1,030, ,030,800 Food Services Employee Salaries & Benefits 0 6,925, ,925,750 Professional & Technical Services 0 495, ,000 Other Purchased Services 0 279, ,000 Supplies & Materials 0 6,867, ,867,240 Equipment 0 285, ,000 Site Improvements Benefit District Charges 0 0 1,420,500 1,420,500 Facilities and Construction Services Site Acquisitions 0 0 1,500,000 1,500,000 Facility Improvement Repairs & Contracted Services 0 0 3,000,000 3,000,000 Bond & Interest Payments Bond Principal Payments ,407,945 28,407,945 Bond Interest Payments ,867,716 24,867,716 Other Bond Costs 0 34,770 1,750,000 1,784,770 TOTAL 291,365,520 67,037,934 92,326, ,729,615 Beginning Fund Balance 19,238,104 24,942,463 83,074, ,255,346 Excess of over 1,311,660 3,131,704 (12,575,700) (8,132,336) Transfer from General Fund 0 250, ,000 ENDING FUND BALANCE 20,549,764 28,324,167 70,499, ,373,009 A detailed analysis and discussion of each of these fund types appears on the following page. Financial Section 87

10 The Operating/Dependent funds represented in this group are: General, Supplemental General and all State identified Special Revenue funds that receive the majority of their revenue through General and Supplemental General fund transfers. While the Special Revenue funds in this group do have some fund specific revenue, it accounts for a small percentage of the total fund revenue. Trends of Major Revenue Sources Over the past few years the District has experienced shifts in the receipt of District revenues. The state of Kansas approved a uniform property tax levy in For the fiscal year the levy was 35 mills. By state legislature this was reduced to 27 mills in and 20 mills for The current mill levy has remained at 20 mills. Because of this property tax reduction, a significant shift of lowering the County Ad Valorem revenue to increasing the State General Aid revenue occurred. Operating & Dependent Funds Summary Approved s by Function and Object General Fund & LOB At Risk 4 Yr. & K-12 Bilingual Virtual Education Professional Development Motor/Recreational Vehicles Taxes 4,132, Tuition Other 0 56, , ,300 Reimbursements 4,224, County Ad Valorem Tax 36,243, State General State Aid 177,773, ,000 Supplemental State Aid 29,744, Special Education Aid 31,963, KPERS State Aid Federal Medicaid/Grants Total 284,082,088 56, , ,300 Instructional Services Employee Salaries & Benefits 122,859,159 13,917,487 4,363,025 90,050 0 Professional & Technical Services 127, ,657 13, Other Purchased Services 3,225,125 2, Supplies & Materials 4,381, , ,100 0 Equipment 623,153 32, Other Support Services- Students Employee Salaries & Benefits 11,131, , Professional & Technical Services 37, Other Purchased Services 29, Supplies & Materials 100, Equipment 5, Support Services - Instruction Employee Salaries & Benefits 10,331,900 18,700 52, ,850 Professional & Technical Services 225, ,450 Other Purchased Services 53,000 7,600 5, Supplies & Materials 1,067,738 3, Equipment 8, Support Services- General Administration Employee Salaries & Benefits 1,637, Professional & Technical Services 57, Other Purchased Services 89, Supplies & Materials 69, Other 58, Support Services- School Administration Employee Salaries & Benefits 18,428, , Professional & Technical Services Other Purchased Services 139,100 1, Supplies & Materials Equipment Central Services Employee Salaries & Benefits 6,271, Professional & Technical Services 2,429, Other Purchased Services 140, Supplies & Materials 122, Equipment 35, Other 55, Operations & Maintenance Services Employee Salaries & Benefits Professional & Technical Services 2,179, Other Purchased Services 805, Supplies & Materials 1,074,156 90, Utilities 7,895,640 14, Equipment 2, Transportation Services Employee Salaries & Benefits 109, Transportation Services 4,155,700 84, Other Purchased Services Supplies & Materials 2, Transportation Fuel 600, TOTAL 200,567,212 14,879,594 4,435,400 92, ,300 Beginning Fund Balance 3,668, ,000 50,000 15,000 50,000 Excess of over 83,514,876 (14,823,594) (4,435,400) (41,250) 0 Transfer to Operating Funds (82,709,612) 14,823,594 4,435,400 41,250 0 ENDING FUND BALANCE 4,474, ,000 50,000 15,000 50, Financial Section

11 Operating & Dependent Funds Summary Approved s by Function and Object Parents as Teachers Special Education Career & Technical Education Contingency Reserve TOTALS Motor/Recreational Vehicles Taxes ,132,589 Tuition , ,000 Other 5, ,450 11, ,650 Reimbursements ,224,250 County 0 Ad Valorem Tax ,243,379 State 0 General State Aid 403, ,227,689 Supplemental State Aid ,744,548 Special Education Aid ,963,719 KPERS State Aid 0 19, ,296 Federal 0 Medicaid/Grants 0 7,030, , ,187,060 Total 408,948 7,415, , ,677,180 Instructional Services Employee Salaries & Benefits 0 34,822,505 7,851, ,903,446 Professional & Technical Services 0 68, ,957 Other Purchased Services 0 1,261,450 32, ,521,900 Supplies & Materials 0 235, , ,931,639 Equipment 0 28,000 5, ,583 Other , ,500 Support Services- Students Employee Salaries & Benefits 654,800 12,072, , ,163,877 Professional & Technical Services 16, , ,808 Other Purchased Services 6,000 2, ,260 Supplies & Materials 3,000 46, ,055 Equipment 0 39, ,096 Support Services- Instruction Employee Salaries & Benefits 0 210, ,762,294 Professional & Technical Services 0 15, ,385 Other Purchased Services ,400 Supplies & Materials 0 9, ,080,538 Equipment ,500 Support Services- General Administration Employee Salaries & Benefits ,637,586 Professional & Technical Services ,000 Other Purchased Services ,620 Supplies & Materials ,600 Other ,000 Support Services- School Administration Employee Salaries & Benefits 0 1,366, , ,221,621 Professional & Technical Services 0 24, ,100 Other Purchased Services 0 14,400 1, ,200 Supplies & Materials 0 8, ,050 Equipment 0 2, ,850 Central Services Employee Salaries & Benefits ,271,266 Professional & Technical Services ,429,920 Other Purchased Services ,850 Supplies & Materials ,300 Equipment ,700 Other ,300 Operations & Maintenance Services Employee Salaries & Benefits , ,225 Professional & Technical Services 0 21, ,200,231 Other Purchased Services ,610 Supplies & Materials 0 0 3, ,167,756 Utilities 0 115,400 41, ,066,595 Equipment ,360 Transportation Services Employee Salaries & Benefits ,358 Transportation Services 0 10,786, ,027,385 Other Purchased Services 0 0 4, ,500 Supplies & Materials ,500 Transportation Fuel 0 430, ,030,800 TOTAL 680,608 61,845,030 8,539, ,365,520 Beginning Fund Balance 59,095 5,509,972 50,000 9,735,051 19,238,104 Excess of over (271,660) (54,429,927) (8,201,385) 0 1,311,660 Transfer to Operating Funds 262,566 54,945,417 8,201, ENDING FUND BALANCE 50,000 6,025,462 50,000 9,735,051 20,549,764 The overall impact of this shift on the revenue flow to the District is zero. The State School District Finance and Quality Performance Act required the state to equalize through State General Aid any reduction in revenue from the uniform property tax. Although the County Motor Vehicle property tax was decreased state wide, the growth in numbers of vehicles within our District tax base continues to increase. The overall trend in motor vehicle revenue has remained constant. Riders in Family Annual Payment Per Rider Prior to July 1 (25% Discount) After July 1 (Full Price) First Child $ $ Second Child $ $ Third Child $ $ Riders in Family Semester Payment Per Rider Prior to July 1 (5% Discount) After July 1 (Full Price) First Child $ $ Second Child $ $ Third Child $ $ Note: The second child in a family receives a 10% discount. The third child in a family receives a 20% discount. All other riders from a family receive free transportation. Transportation State Requirements The Board of Education of a school district may provide transportation for students living 2.5 miles or more from school. Approximately 6,800 students in Olathe will meet this criterion in. Policy The Olathe Board of Education complies with the state statute and currently provides additional services to the students in the District. Bus transportation may be available on a spaceavailable, first-come, firstserve basis for parents who wish to pay for students who live less than 2.5 miles. For those schools where regular bus routes currently exist, bus transportation may be available and fees apply for: Elementary students living 1 to 2.5 miles from school. Secondary students living 1.5 to 2.5 miles from school. Students who live within a transportation safety variance area. For those who register and pay for service by July 1st The only space available after July 1st will be on a first-come, first-serve basis and is not guaranteed. Payrider Service The base rate for bus transportation is $290 per school year, but various discounts may apply. Students with approved free or reduced lunch program applications receive free transportation on a space-available, firstcome, first-serve basis, where regular bus routes currently exist. All other District payrider conditions and requirements remain applicable. Financial Section 89

12 The General fund of a district is the fund from which operating expenses are paid and to which is deposited general state aid, proceeds from the levy at the uniform general fund tax rate, payments relating to transfer of territory, federal Impact Aid funds and other monies specified by law. The purpose is to track the expenditures necessary to carry out the educational opportunities and associated operating costs related to the school District. While a portion of the General fund revenue comes from local property taxes, all revenue is determined and structured by state legislation. General Fund Detail (Includes General and Supplemental General Funds) by Function and Object Proposed Motor/Recreational Vehicles Taxes 4,387,770 4,384,191 3,865,904 4,227,850 4,132,589 4,256,567 4,384,264 4,515,792 Student Tuition Other 0 96, , Reimbursements 4,969,758 5,856,021 6,325,139 3,746,796 4,224,250 4,308,735 4,394,910 4,482,808 County State Ad Valorem Tax 27,879,681 33,639,137 31,923,402 42,057,941 36,243,379 37,693,114 39,200,839 40,768,872 General State Aid 143,083, ,095, ,897, ,728, ,773, ,773, ,773, ,773,603 Supplemental State Aid 27,920,506 27,920,506 27,270,578 24,648,037 29,744,548 30,339,439 30,946,228 31,565,152 Special Education Aid 25,493,790 26,369,816 26,617,578 27,800,879 31,963,719 32,602,993 33,255,053 33,920,154 KPERS State Aid 0 15,910,354 15,546, Capital Outlay State Aid 0 2,144, Federal TOTAL 233,735, ,416, ,821, ,210, ,082, ,974, ,954, ,026,381 Instructional Services Employee Salaries & Benefits 111,498, ,517, ,101, ,828, ,859, ,316, ,822, ,379,122 Professional & Technical Services 88,983 61,267 50,770 93, , , , ,225 Other Purchased Services 2,200,891 2,497,368 2,831,489 2,889,290 3,225,125 3,225,125 3,225,125 3,225,125 Supplies & Materials 3,273,098 3,310,527 3,443,685 3,860,144 4,381,994 4,381,994 4,381,994 4,381,994 Equipment 40, , , , , , , ,153 Support Services- Students Employee Salaries & Benefits 8,686,152 8,893,958 9,436,652 10,128,165 11,131,550 11,354,181 11,581,265 11,812,890 Professional & Technical Services 69,283 74,611 88,211 32,341 37,000 37,000 37,000 37,000 Other Purchased Services 72,153 20,784 13,628 17,072 29,560 29,560 29,560 29,560 Supplies & Materials 0 74,320 74,670 77, , , , ,480 Equipment 0 2,058 4,612 6,462 5,800 5,800 5,800 5,800 Support Services- Instruction Employee Salaries & Benefits 8,441,772 8,081,508 8,423,673 9,713,946 10,331,900 10,538,538 10,749,309 10,964,295 Professional & Technical Services 203, , , , , , , ,435 Other Purchased Services 43,484 50,899 49,947 43,098 53,000 53,000 53,000 53,000 Supplies & Materials 953, , , ,877 1,067,738 1,067,738 1,067,738 1,067,738 Equipment 4,451 11,150 6,447 4,198 8,500 8,500 8,500 8,500 Other Support Services- General Administration Employee Salaries & Benefits 1,031,071 1,485,894 1,547,798 1,530,632 1,637,586 1,670,338 1,703,744 1,737,819 Professional & Technical Services 160, ,740 73,786 29,551 57,000 57,000 57,000 57,000 Other Purchased Services 52,830 69, , ,432 89,620 89,620 89,620 89,620 Supplies & Materials 85,036 85,909 82,080 61,975 69,600 69,600 69,600 69,600 Equipment 1, ,210 1, Other 23,805 25,044 53,552 49,995 58,000 58,000 58,000 58, Financial Section

13 The Supplemental General fund, often referred to as the Option (LOB), is the other operating fund for the District. As a general principle, the law provides that, in addition to the General fund funding, a school district may approve LOB spending in any amount up to 33.0% of its State Financial Aid. School districts may spend LOB revenues for any purpose for which expenditures from the General fund are authorized or the revenues may be transferred to any program-weighted or special revenue fund of the district. property taxes and state aid. Instructional/Operational Salaries/Benefits FORECAST BASE is scheduled to increase each year, resulting in an increasing legal maximum budget. Reduction of expenditures and/or revenue enhancement will be a priority in order to balance future budgets. General Fund Detail (Includes General and Supplemental General Funds) by Function and Object (continued) Support Services- School Administration Employee Salaries & Benefits 13,540,338 15,218,723 15,961,277 17,257,298 18,428,996 18,797,576 19,173,527 19,556,998 Other Purchased Services 138, , , , , , , ,100 Central Services Employee Salaries & Benefits 5,407,768 5,986,118 6,400,013 5,988,084 6,271,266 6,396,691 6,524,625 6,655,118 Professional & Technical Services 540,758 1,611,824 1,719,579 2,104,466 2,429,920 2,429,920 2,429,920 2,429,920 Other Purchased Services 62,503 44,985 14,258 90, , , , ,850 Supplies & Materials 84,302 84,710 80,940 85, , , , ,300 Equipment 0 42,163 37,996 11,574 35,700 35,700 35,700 35,700 Other 73,344 15,376 18,656 19,496 55,300 55,300 55,300 55,300 Operations & Maintenance Services Employee Salaries & Benefits 11,730,606 8,878,331 2,544, Professional & Technical Services 1,685,343 2,582,640 3,549,543 3,884,294 2,179, , , ,031 Other Purchased Services 763, , , , , , , ,610 Supplies & Materials 95, ,134 51, ,322 1,074,156 1,074,156 1,074,156 1,074,156 Utilities 6,020,657 6,086,326 6,432,332 6,671,718 7,895,640 7,895,640 7,395,640 6,895,640 Equipment 4,488 3,226 13,620 9,323 2,360 2,360 2,360 2,360 Transportation Services Employee Salaries & Benefits 50,978 52,027 85, , , , , ,052 Transportation Services 2,911,186 3,353,596 3,510,369 3,735,530 4,155,700 4,155,700 4,155,700 4,155,700 Supplies & Materials 1, ,735 2,500 2,500 2,500 2,500 2,500 Transportation Fuel 526, , , , , , , ,181 TOTAL 180,569, ,411, ,868, ,146, ,567, ,488, ,478, ,537,871 Beginning Fund Balance 4,898, ,087 2,789,116 1,728,196 3,668,986 4,224,250 4,933,623 3,932,199 Excess of over 53,165,912 75,004,312 68,953,531 77,064,009 83,514,876 84,485,843 84,476,524 84,488,510 Transfer to Operating Funds (57,098,759) (85,191,436) (59,214,924) (75,123,220) (82,959,612) (83,776,469) (85,477,948) (87,318,570) Transfer to KPERS 0 (15,910,354) (15,546,581) Transfer from Capital Outlay 0 0 4,747, Transfer from General Fund 0 27,920, ENDING FUND BALANCE 966,087 2,789,116 1,728,196 3,668,986 4,224,250 4,933,623 3,932,199 1,102,139 Proposed Internally, General and Supplemental General Funds are commingled with 33.0% of their combined line items being allocated to the Supplemental Fund. For that reason, discussions of revenue, expenditures and forecasts apply to both funds. Financial Section 91

14 State Aid passed through the General Fund Instructional Salaries/Benefits FORECAST Relatively flat revenue and expenditure levels. Kansas Pre-K: 4-Year-Old At-Risk fund tracks revenues and expenditures for students enrolled in this program. Students must meet an age requirement and must be identified as at-risk by using any one of the following categories: poverty, single-parent family, DCF referral, teen parent, parents lacking high school diploma, enrolled through a migrant program, limited English proficiency, or developmentally or academically delayed based on assessments. The District is currently approved for 144 students or 72.0 FTE. Olathe Public Schools Annual The K-12 At-Risk fund is used to track revenue and expenditures for students identified as at-risk. Funding is based on the number of students in the District eligible for Child Nutrition Program Benefits for Free or Reduced Meals. The purpose of at-risk funding is to provide at-risk students with additional educational opportunities and instructional services to increase their academic achievement. These opportunities for instructional services must be in addition to the services currently offered to the general population. Some examples of an at-risk program include: extended year, extended day, alternative schools, drop-out prevention and tutorial assistance. 92 Financial Section

15 4-Year Old & K-12 At Risk Funds by Function and Object Proposed Other 68,418 76,873 64,039 55,848 56,000 56,000 56,000 56,000 Federal TANF , TOTAL 68,418 76,873 64, ,423 56,000 56,000 56,000 56,000 Instructional Services Employee Salaries & Benefits 6,443,872 4,295,475 4,201,736 15,029,854 13,917,487 14,195,837 14,479,753 14,769,349 Professional & Technical Services 102, , , , , , , ,633 Other Purchased Services 2, ,863 1,808 2,400 2,024 2,077 2,167 Supplies & Materials 84, ,105 98, , , , , ,227 Equipment 5,443 3,670 19,259 16,509 32,130 22,633 23,757 26,173 Support Services- Students Employee Salaries & Benefits 89,508 89,535 89, , , , , ,304 Professional & Technical Services Other Purchased Services Supplies & Materials Support Services- Instruction Employee Salaries & Benefits 20,739 20,435 21,126 17,283 18,700 19,074 19,455 19,845 Professional & Technical Services 0 0 1, Other Purchased Services 4,073 3,503 2,116 1,760 7,600 3,826 4,395 5,274 Supplies & Materials ,125 3,000 1,708 2,278 2,329 School Administration Employee Salaries & Benefits 157, , , , , , , ,313 Professional & Technical Services Other Purchased Services , Operations & Maintenance Employee Salaries & Benefits Supplies & Materials 47,193 46,653 29,531 92,417 90,400 70,783 84,533 81,905 Utilities 11,979 10,484 6,213 8,620 14,200 9,678 10,833 11,570 Transportation Services Transportation Services 53,892 59,133 55,103 50,648 84,950 63,567 66,388 71,635 Other Purchased Services 5, TOTAL 7,028,569 4,955,240 4,908,054 15,869,588 14,879,594 15,096,842 15,421,073 15,728,339 Beginning Fund Balance 99, , , , , , , ,000 Excess of over (6,960,151) (4,878,367) (4,844,015) (15,697,165) (14,823,594) (15,040,842) (15,365,073) (15,672,339) Transfer From General Fund(s) 6,960,199 4,878,367 4,844,015 15,697,165 14,823,594 15,040,842 15,365,073 15,672,340 ENDING FUND BALANCE 100, , , , , , , ,000 In there was a significant increase in expenditures and a corresponding increase in the transfer from the General Fund. This is the result of an accounting change in which all at risk salaries and benefits were charged to this fund not just an amount equal to state aid for at risk students. Financial Section 93

16 State Aid passed through the General Fund and General Fund Support Instructional Salaries/Benefits FORECAST Increasing expenditures will cause the need for increasing transfers from the General Fund. The Bilingual Education fund tracks the expenditures for the District s English Language Learners (ELL) program. ELL is for students whose first language is something other than English, who receive Olathe Public Schools Annual language assistance at their school. The major source of revenue is a transfer from the General fund. Bilingual Fund by Function and Object Proposed County State Federal TOTAL Instructional Services Employee Salaries & Benefits 3,589,987 3,579,923 3,596,828 4,295,200 4,363,025 4,450,286 4,539,291 4,630,077 Professional & Technical Services 25,978 27,048 21,940 6,342 13,325 13,458 13,593 13,729 Support Services- Instruction Employee Salaries & Benefits 52,200 39,760 44,076 49,749 52,750 53,805 54,881 55,979 Professional & Technical Services Other Purchased Services 3,220 13,087 2,031 12,000 5,800 5,858 5,917 5,976 Supplies & Materials TOTAL 3,671,762 3,660,562 3,666,108 4,364,170 4,435,400 4,523,912 4,614,192 4,706,275 Beginning Fund Balance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Excess of over (3,671,762) (3,660,562) (3,666,108) (4,364,133) (4,435,400) (4,523,912) (4,614,192) (4,706,275) Transfer From General Fund(s) 3,671,762 3,660,562 3,666,108 4,364,133 4,435,400 4,523,912 4,614,192 4,706,275 ENDING FUND BALANCE 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50, Financial Section

17 The Virtual Education fund tracks the expenditures for the online education courses provided for District students. Unlike many Districts where the intent is to entice students from other Districts to pay for their online courses, the virtual courses designed in Olathe are provided to enhance the opportunities for local students to expand their educational opportunities during their high school experience. The only source of revenue is from the General Fund transfer. State Aid passed through the General Fund and additional General Fund Support Instructional Salaries/Benefits FORECAST In the total expenditures for instructors stipends will increase to reflect program growth and will grow minimally through. Virtual Education Fund by Function and Object Proposed Other 6,075 58,319 52,554 43,593 51,500 52,015 52,535 53,061 TOTAL 6,075 58,319 52,554 43,593 51,500 52,015 52,535 53,061 Instructional Services Employee Salaries & Benefits 76,899 47,654 84,253 75,062 90,050 91,851 93,688 95,562 Other Purchased Services Supplies & Materials 11,013 8, ,100 1,130 1,199 1,476 TOTAL 87,913 56,420 85,509 75,949 92,750 93,587 95,499 97,656 Beginning Fund Balance 10,000 10,000 68,695 35,740 15,000 15,000 15,000 15,000 Excess of over (81,838) 1,898 (32,955) (32,356) (41,250) (41,572) (42,964) (44,596) Transfer From General Fund(s) 81,838 56, ,616 41,250 41,572 42,964 44,596 ENDING FUND BALANCE 10,000 68,695 35,740 15,000 15,000 15,000 15,000 15,000 Financial Section 95

18 State Aid and Sources Training Materials and Employee Support Services In, the District received Professional Development State Aid for the first time in several years. To increase the District s State Aid Reimbursement potential, Staff Development stipends were moved from the General Fund to the Professional Development Fund. FORECAST Flat revenue and expenditure budgets will maintain a consistent fund balance. The Professional Development fund tracks the planned learning opportunities provided to certified personnel employed by the District for purposes of improving the performance of such personnel in already held or assigned positions. Our educators and staff members are dedicated, quality professionals committed to life-long learning. Our teachers believe in seeking out the best strategies for teaching children and staff members are continually updating their skills to better serve the students and the public. All staff members are involved in staff development opportunities, often after school hours and in the summer. Olathe Public Schools Annual Several days are provided before school starts and during the school year for staff training. During these times, staff learn new techniques to improve instruction for children. The Professional Development fund is used to account for state aid revenues that are provided for teacher in-service training programs. In the school year, state aid for this fund was eliminated, but was reinstated in. The source of revenue predominantly comes from local sources. Professional Development Fund by Function and Object Proposed Other 109, , , , , , , ,300 State State Aid ,929 50,000 50,000 50,000 50,000 TOTAL 109, , , , , , , ,300 Support Services- Instructional Employee Salaries & Benefits 146, , , , , , , ,093 Professional & Technical Services 82,159 99,624 54, , , , , ,250 Other Purchased Services 1,475 5,241 3,077 4, ,556 2,383 1,646 Supplies & Materials 123 7, , ,828 21,104 12,311 TOTAL 230, , , , , , , ,300 BEGINNING FUND BALANCE 50,000 50,000 50,000 89,367 50,000 50,000 50,000 50,000 Excess of over (120,857) (135,623) 39,368 (106,676) Transfer From General Fund(s) 120, , , ENDING FUND BALANCE 50,000 50,000 89,367 50,000 50,000 50,000 50,000 50, Financial Section

19 Parents as Teachers is a state program that helps parents understand the development of their children ages birth to 36 months. Areas discussed and monitored include speech and language, motor development and social and intellectual development; parenting and family well-being. Parents are visited in their homes, resources centers are available, developmental screenings are conducted and group connections are provided. Involving parents in our school system early and helping them understand their child s development helps prepare parents and their children for school success. The majority of revenue received is from state aid. State Aid Parent Educator Salaries/Benefits FORECAST Flat revenue and expenditure budgets will maintain a consistent fund balance. Parents as Teachers (Olathe Only) by Function and Object Other 32,646-35,700 4,500 5,000 5,100 5,202 5,306 State State Aid 400, , , , , , ,948 Other Federal Other , TOTAL 433, , , , , , , ,254 Support Services- Students Employee Salaries & Benefits 622, , , , , , , ,544 Professional & Technical Services 1, ,236 15,939 16,808 7,809 7,904 8,003 Other Purchased Services 9,477 9,056 6,878 7,567 6,000 6,060 6,121 6,182 Supplies & Materials 1,715 13,181 17,688 21,396 3,000 3,030 3,060 3,091 Equipment , Other Support Services- Instruction Proposed Employee Salaries & Benefits Professional & Technical Services Supplies & Materials TOTAL 634, , , , , , , ,820 Beginning Fund Balance 55,975 82,646 64,822 50,001 59,095 50,000 50,000 50,000 Excess of over (201,288) (244,805) (237,810) (248,152) (271,660) (262,567) (262,566) (262,566) Transfer From General Fund(s) 227, , , , , , , ,566 ENDING FUND BALANCE 82,646 64,822 50,001 59,095 50,000 50,000 50,000 50,000 Financial Section 97

20 The Special Education fund is used to track revenues and expenditures that are directly related to Special Education programs. Placement in special services is based on student eligibility and need with processes to determine eligibility for special education and related services available in each school. Services are provided to students with special needs in the following exceptionality areas defined by the Individuals with Disabilities Education Act (IDEA): Autism, Deaf-Blindness, Deafness, Emotional Disturbance, Hearing Impairment, Intellectual Disability, Multiple Disabilities, Orthopedic Impairment, Other Health Impairment, Specific Learning Disability, Speech or Language Impairment, Traumatic Brain Injury, or Visual Impairment. To meet the needs of children with exceptionalities, services are provided by certified special education teachers. Related services personnel include: occupational and physical therapists, music therapists, school psychologists, school social workers, speech/language pathologists, audiologists, school nurses and assistive technology specialists. In addition, preschool services for children with special needs are available beginning at age three. Special Education Fund by Function and Object Other 305, , , , , , , ,481 State Deaf/Blind Aid 10,329 22,833 10,667 7,597 19,296 12,520 13,138 14,985 Federal Medicaid/Grants In Aid 7,831,680 6,880,232 6,938,025 7,383,283 7,030,357 7,117,222 7,176,954 7,108,178 TOTAL 8,147,955 7,188,674 7,265,288 7,714,936 7,415,103 7,465,109 7,531,716 7,470,643 Instructional Services Employee Salaries & Benefits 29,265,596 29,397,607 29,979,368 33,042,312 34,822,505 35,518,955 36,229,334 36,953,921 Professional & Technical Services 61,203 44,309 62,503 48,300 68,000 69,360 70,747 72,162 Other Purchased Services 547, , ,316 1,076,866 1,261,450 1,261,450 1,261,450 1,261,450 Supplies & Materials 134, , , , , , , ,349 Equipment 25,535 17,837 23,028 24,956 28,000 28,000 28,000 28,000 Support Services-Student Employee Salaries & Benefits 10,405,047 10,857,539 10,992,618 12,022,036 12,072,326 12,313,773 12,560,048 12,811,249 Professional & Technical Services 222, , , , , , , ,220 Other Purchased Services 1,560 2,475 2,450 2,450 2,700 2,700 2,700 2,700 Supplies & Materials 44,954 36,869 36,835 43,195 46,575 46,575 46,575 46,575 Equipment 29,113 41,276 29,724 27,407 39,296 39,296 39,296 39,296 Support Services- Instruction Employee Salaries & Benefits 231, , , , , , , ,953 Professional & Technical Services ,000 15,000 15,000 15,000 Supplies & Materials 4,660 7,134 7,928 9,870 9,800 9,800 9,800 9,800 Proposed 98 Financial Section

21 State Aid passed through the General Fund, General Fund Support and Federal Aid (continued) Special Education Fund by Function and Object Proposed Instructional Salaries/ Benefits, Student Support Services and Transportation Services Support Services- School Administration Employee Salaries & Benefits 1,184,594 1,232,537 1,264,595 1,367,963 1,366,200 1,393,524 1,421,394 1,449,822 Professional & Technical Services 16,638 15,134 16,546 22,936 24,100 24,582 25,074 25,575 Other Purchased Services 14,699 14,785 13,163 10,696 14,400 14,400 14,400 14,400 Supplies & Materials 5,385 4,839 22,097 5,956 8,050 8,050 8,050 8,050 Equipment 2,700 1,204 3,351 2,288 2,850 2,850 2,850 2,850 Operations & Maintenance Services Employee Salaries & Benefits Professional & Technical Services 16,006 17,172 16,258 17,930 21,200 21,200 21,200 21,200 Utilities 105, , , , , , , ,463 Transportation Services Employee Salaries & Benefits Transportation Services 7,229,316 8,195,025 8,411,815 9,199,091 10,786,735 11,002,470 11,222,519 11,446,969 Supplies & Materials Transportation Fuel 300, , , , , , , ,319 TOTAL 49,848,496 51,452,196 52,885,775 58,057,610 61,845,030 63,048,237 64,275,508 65,527,325 Beginning Fund Balance 6,595,301 6,707,422 6,459,447 6,498,863 5,509,972 6,025,462 6,025,462 6,025,462 Excess of over (41,700,541) (44,263,522) (45,620,487) (50,342,674) (54,429,927) (55,583,128) (56,743,792) (58,056,682) Transfer From General Fund(s) 41,812,662 44,015,547 45,659,902 49,353,783 54,945,417 55,583,127 56,743,793 58,056,682 ENDING FUND BALANCE 6,707,422 6,459,447 6,498,863 5,509,972 6,025,462 6,025,462 6,025,462 6,025,462 FORECAST assumed to slightly decrease in and remain relatively flat thereafter with expenditures increasing with enrollment increases. Reduction of expenditures and/or revenue enhancement must be a priority in order to balance future budgets and avoid increases in transfers from the General Fund. Financial Section 99

22 The Career and Technical Education fund is used to track expenditures that are directly related to Career and Technical Education (CTE) programs. Courses in Career and Technical Education give students the opportunity to explore career interests in preparation for being college and career ready. Career and Technical education credits may be applied toward high school graduation in a variety of career pathway options. Construction, Culinary Arts, Automotive Technology, Automotive Collision Repair, Welding, and CNA are offered as two-year center-based programs to juniors and seniors. Additionally, many of Olathe s 21st Century high school programs enjoy direct links to Career and Technical Education. Career and Technical Education Fund by Function and Object Proposed Tuition- Other School Districts 172, , , , , , , ,405 Other 17,698 8,749 10,160 12,735 11,400 11,628 11,861 12,098 State State Aid (668) Federal Grants 127, , , , , , , ,294 TOTAL 317, , , , , , , ,940 Instructional Services Employee Salaries & Benefits 3,849,570 3,865,679 4,411,327 4,716,580 7,851,220 7,970,722 8,092,051 8,215,200 Professional & Technical Services 40,248 54,930 51,970 1, Other Purchased Services 7,307 9,340 13,477 30,339 32,325 32,810 33,302 33,802 Supplies & Materials 142, , , , , , , ,223 Equipment 68,196 14,214 2,718 6,413 5,300 5,380 5,460 5,542 Other 7,442 10,738 13,647 17,968 22,500 22,838 23,180 23,528 Support Services- Student Employee Salaries & Benefits , , , , ,198 Professional & Technical Services 0 0 4,000 7, Support Services- Instruction Employee Salaries & Benefits Professional & Technical Services Support Services- School Administration Employee Salaries & Benefits 150, , , , , , , ,064 Professional & Technical Services Other Purchased Services 2,536 2,257 1,929 1,580 1,700 1,726 1,751 1,778 Central Services Professional & Technical Services Supplies & Materials Financial Section

23 Federal Aid, State Aid passed through the General Funds, and other School Districts participation fees Career and Technical Education Fund by Function and Object Proposed (continued) Operations & Maintenance Services Employee Salaries & Benefits 39,907 40,679 41,739 43,855 43,800 44,457 45,124 45,801 Professional & Technical Services Supplies & Materials 2,790 2,535 2,396 2,808 3,200 3,248 3,297 3,346 Utilities 34,451 30,714 29,438 36,847 41,355 41,975 42,605 43,244 Transportation Services Other Purchased Services ,500 4,568 4,636 4,706 Transportation Fuel TOTAL 4,346,101 4,393,139 4,979,433 5,423,050 8,539,626 8,669,454 8,801,264 8,935,051 Beginning Fund Balance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Excess of over (4,028,200) (4,089,998) (4,609,313) (5,102,657) (8,201,385) (8,324,450) (8,449,361) (8,576,111) Transfer From General Fund(s) 4,028,200 4,089,998 4,609,313 5,102,657 8,201,385 8,324,450 8,449,360 8,576,112 ENDING FUND BALANCE 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Instructional Salaries/ Benefits FORECAST Steady increase in revenues paralleling enrollment growth with corresponding increase in expenditures resulting in little change in fund balance Financial Section 101

24 No Planned Olathe Public Schools Annual No Planned The Contigency Reserve Fund is 4.9% of the General Fund for. A Contingency Reserve fund is created in each school district. This fund consists of money deposited therein or transferred thereto according to law. A district is authorized to transfer money from its general fund to the Contingency Reserve fund. Previous to 2014, this limit had been statutorily set at 10.0%. If the amount in the fund exceeds the statutory cap due to a decrease in enrollment, the district may maintain the excess amount in the fund until the amount is depleted by expenditures from the fund. Money may be spent from this fund for financial contingencies as determined by the school district s Board of Education. The purpose of the Contingency Reserve fund is to provide for District expenditures that were not planned for during the adoption of the budget at the beginning of the year. One of the Board s Goals is to create a balanced budget and to live within that budget. With successful budget management, the approved budget should address all the prioritized goals and objectives identified in the development process that lead to a balanced budget proposal. With this understanding and the exception of cash flow protection, it is not anticipated the Contingency Reserve fund should be needed to assist with the funding of District goals and objectives. The Contingency Reserve fund has been budgeted at 4.9% for this year. Contingency Reserve Fund by Function and Object Proposed County State Federal TOTAL Instructional Services Employee Salaries & Benefits Other TOTAL Beginning Fund Balance 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 Excess of over Transfer From General Fund(s) ENDING FUND BALANCE 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735,051 9,735, Financial Section

25 Financial Section 103

26 The Restricted/Independent funds represent all the other funds accounted for on the Treasurer s Report and associated with the State ing process. While some of these funds may receive transfers from the General and Supplemental General funds, they historically have received a small percentage of revenue in this manner and receive almost 100% of the necessary funding through user fees, separate levy authority and/or from other state/federal agencies. Federal Summer School Restricted/Independent Funds Summary Approved s by Function and Object Driver Training Food Service Health Care Reserve Risk Management Workers Compensation Textbook & Student Materials Gifts & Grants Motor/Recreational Vehicles Taxes ,679 37,679 Tuition 0 80, ,000 Fees , ,014, ,124,253 Meal Sales ,244, ,244,443 Contributions and Donations , ,762 Other ,000 41,081, , , ,509,755 Revenue From Other Funds ,230, ,230,500 County Ad Valorem Taxes , ,809 State State Aid , , ,020 Federal Grants/Title Programs 8,869, ,869,753 Child Nutrition Aid ,712, ,712,665 TOTAL 8,869,753 80, ,000 14,577,128 41,081, ,549 1,230,500 2,036, , ,488 70,169,639 Instructional Services Employee Salaries & Benefits 5,285,491 76,400 59, ,956, ,000 84, , ,986,836 Insurance , , ,145 Professional & Technical Services 1,259,540 4, , ,281,539 Other Purchased Services 68, , ,089 Supplies & Materials 1,376, , , ,490,552 Textbooks & Instructional Resources ,872, ,872,243 Equipment Support Services- Students Employee Salaries & Benefits , ,789 Professional & Technical Services , ,335 Other Purchased Services 21, , ,173 Supplies & Materials Support Services- Instruction Employee Salaries & Benefits 64,000 4, , , ,636 Professional & Technical Services 164, , ,800 Other Purchased Services 8, , ,270 Supplies & Materials 236, , ,043 Support Services- General Administration Employee Salaries & Benefits , ,000 Insurance , ,000 Special Liability TOTALS 104 Financial Section

27 Federal Summer School Restricted/Independent Funds Summary Approved s by Function and Object Driver Training Food Service Health Care Reserve Risk Management Workers Compensation Textbook & Student Materials Gifts & Grants Special Liability (continued) Support Services- School Administration Employee Salaries & Benefits 133, , , ,300 Supplies & Materials 1, ,500 Other Purchased Services Central Services Employee Salaries & Benefits , ,300 Insurance , ,007 Professional & Technical Services ,000 2, ,000 Other Purchased Services , ,500 Supplies & Materials , ,500 Operations & Maintenance Services Employee Salaries & Benefits , ,000 Insurance , ,316 Repairs & Contracted Services , ,700 Other Purchased Services , ,000 Utilities , ,000 Transportation Fuel 0 0 6, ,800 Other 0 0 1, ,000 Transportation Services Supplies & Materials Transportation Services 20, ,800 Food Services Employee Salaries & Benefits ,850, , ,925,750 Professional & Technical Services , ,000 Other Purchased Services , ,000 Supplies & Materials ,867, ,867,240 Equipment , ,000 Site Improvements Purchased Property Services , ,770 TOTAL 8,640,792 85, ,800 14,944,990 37,956, ,310 1,027,807 2,029, , ,000 67,037,934 Beginning Fund Balance (228,960) 324, ,141 2,415,560 16,371, ,889 1,800,000 2,060, , ,534 24,942,463 Excess of over 228,960 (5,000) (27,800) (367,862) (3,124,881) 5, ,693 7,147 (12,042) (24,512) 3,131,704 Transfer From General Fund(s) , ,000 ENDING FUND BALANCE 0 319, ,341 2,297,698 19,496, ,128 2,002,693 2,068, , ,022 28,324,167 TOTALS A detailed analysis and discussion of each of these funds appears on the following pages. Financial Section 105

28 The Federal fund tracks specific programs that are funded by the federal government. Programs include Head Start, Title I, Title II, Title III, Early Childhood, Title VIB, Homeless. Examples of target specific programs include helping disadvantaged children meet higher standards, preventing violence in and around schools, preventing the illegal use of alcohol, fostering a safe and drug-free learning environment, increasing student academic achievement through strategies such as improving teacher and principal quality and special education programs to support students with disabilities. Federal Fund by Function Proposed Federal: Grants/Title Programs 4,223,635 4,271,013 4,578,591 5,149,239 8,869,753 5,658,061 5,658,061 5,658,061 TOTAL 4,223,635 4,271,013 4,578,591 5,149,239 8,869,753 5,658,061 5,658,061 5,658,061 Instructional Services Employee Salaries & Benefits 3,441,708 3,526,914 3,746,771 4,307,043 5,285,491 2,232,363 2,395,686 2,563,907 Professional & Technical Services 1, ,767 28,509 1,259,540 1,259,540 1,259,540 1,259,540 Other Purchased Services 54,062 17,575 33,046 9,951 68,051 37,016 38,340 47,802 Supplies & Materials 123, , , ,475 1,376,830 1,596,333 1,388,647 1,185,769 Equipment ,436 30, ,426 16,756 12,060 Support Services- Students Employee Salaries & Benefits 10,438 8,170 6,212 1, Professional & Technical Services 3,765 4,226 3,367 6, ,456 3,485 2,447 Other Purchased Services 27,762 16,394 25,646 25,108 21,653 24,136 23,632 23,140 Supplies & Materials 1,700 1, Support Services- Instruction Employee Salaries & Benefits 272, , , ,274 64,000 65,920 67,898 69,935 Professional & Technical Services 56,585 70, , , , , , ,418 Other Purchased Services 10,999 9,914 11,881 32,182 8,225 17,429 19,279 14,978 Supplies & Materials 26,832 43,375 30,211 40, , , , ,229 Support Services- School Administration Employee Salaries & Benefits 125, , , , , , , ,551 Supplies & Materials 407 1,299 1, ,500 1,072 1,053 1, Financial Section

29 Federal Title Programs and Grants Instructional Salaries/Benefits Federal Fund by Function Proposed (continued) Transportation Services Transportation Services 21,976 21,045 23,213 24,319 20,800 21,840 22,932 24,079 TOTAL 4,177,943 4,243,659 4,509,604 5,073,627 8,640,792 5,658,061 5,658,062 5,658,062 Beginning Fund Balance (446,606) (400,913) (373,559) (304,572) (228,960) Excess of over 45,692 27,354 68,987 75, , Anticipated Revenue for Encumbered ENDING FUND BALANCE (400,913) (373,559) (304,572) (228,960) DISTRICT GRANTS Grants Total $11.4 Million $2,266,267 Title IA federal grant to provide reading and math teachers and teaching assistants in Title I schools. $5,005,725 Title VI B Pass-Through federal grant to support students with disabilities through special education and related services. $1,015,691 Head Start PA22 federal grant for general operating expenses such as materials and salaries. $267,952 Title 1 Part D, Subpart 2 funds from the federal government to support programming in Johnson County Detention Center and Project Choices, a partnership with the Johnson County Department of Corrections, which educates students involved in the court system and TLC. $532,436 Title IIA Teacher Quality federal grant providing professional development to update instructional skills for educators and the Class Size Reduction Program federal grant to help reduce the number of pupils in Title I Kindergarten through third grade classrooms. $112,000 Title IC Migrant federal grant to provide support (reading and English as a Second Language focus) for qualified migrant students in the district. $145,814 Title VI B Continuous Improvement federal grant to support staff development and the implementation of special service programs in the areas of collaborative teaching, positive behavioral practices and autism. $284,936 Title III English Language Acquisition federal grant to hire additional English Language Learner (ELL) staff and provide professional development for teachers who have ELL students in their classrooms. $71,201 Title IVA federal grant to assist in expanding programs such as music, art, STEM, computer science, accelerated learning, history, and civics courses, as well as expand access to college and career guidance and counseling. $147,298 Early Childhood Pass-Through grant providing federal funding to support students with disabilities via early childhood special education and related services. $139,909 Carl Perkins Improvement federal grant used to improve career and technical programs including family and consumer science, industrial technology, business and computer programs. $337,038 The Olathe Public Schools Foundation provided classroom grants for innovation learning projects, extended learning grants for after-school and evening programs that impact student achievement. $30,378 The Johnson County ATF (Alcohol Tax Fund) grant by the Drug and Alcoholism Council to enhance student and family protective factors through the family strengthening initiatives of Guiding Good Choices, Families and Schools Together and the Parent Education Preparation Program (PEPP). $38,500 Education for Homeless Children and Youth federal grant to ensure that all homeless children and youth have equal access to the same public education provided to other children and youth. Grant activities include tutoring, parent education and training, and other emergency support services for students (medical aid and clothing) $165,124 Grant funds from multiple sources are used by Parents as Teachers to provide PAT Supporting Care Provider services to childcare providers in Johnson, Leavenworth, and Wyandotte Counties. $335,953 Head Start PA 23 federal grant for start-up and operating cost for two new Head Start classrooms. $17,976 Head Start PA 20 federal grant to train Head Start staff. $55,916 Grants from various area businesses and organizations awarded to District educators who have fulfilled the grants requirements. $332,695 The JCCC College Now Grant is awarded to Olathe Public Schools annually for their participation in the College Now concurrent enrollment partnership. It is based on the number of college credit hours earned by students enrolled in eligible classes at each high school. $30,473 Fund-A-Need Grants, administered by the Olathe Public Schools Foundation, offers insight into classroom needs as seen by teachers. Parents, alum, staff, or interested donors fund specific needs identified by teachers. $19,685 Kansas Volunteer Commission Grant used to support the 2018 Kansas STEM (Science, Technology, Engineering and Mathematics) Mentoring Initiative. $20,000 The Battle of the Brains Grant is awarded by Burns & McDonnel to Olathe Public Schools to enhance STEM education at the high school level with funding for science equipment, science outreach, travel expenses for field trips, and professional experiences. $16,450 Kansas Masonic Foundation Grant used to create statewide literacy centers that will have an impact on all Kansans and facilitate literacy programming in local communities. $10,000 The Greater Kansas City Community Foundation Grant from the Hispanic Development Fund focuses on increasing academic achievement and college readiness. $5,000 CenturyLink Foundation Grant aimed at breaking down barriers that accompany the world of technology and provide tools necessary for active learning based on STEAM activities, project based learning, and problem solving. $3,211,692 The Literacy Network of Kansas (LiNK) Grant was funded through the Federal Striving Readers Comprehensive Literacy Initiative in partnership with the Univeristy Center for Research on Learning. The grant funds birth through grade 12 to improve literacy growth and development. FORECAST and expenditures will return to levels after the increase caused by the LiNK Grant noted on this page. Financial Section 107

30 Student Fees and Community Scholarship Donations Instructional Salaries/Benefits and Transportation Services FORECAST Relatively flat revenues and increasing expenditures will result in small decreases in fund balances through. The Summer School fund tracks the expenses associated with programs established by the Board of Education during summer months for the purpose of giving remedial instruction or conducting special projects and activities designed Olathe Public Schools Annual to enrich and enhance the educational experience of pupils. The program is fee based and provides opportunities for students to continue their learning in a relaxed and fun atmosphere. Summer School Fund by Function and Object Tuition 77, ,861 63,421 79,604 80,000 80,400 80,802 81,206 TOTAL 77, ,861 63,421 79,604 80,000 80,400 80,802 81,206 Instructional Services Employee Salaries & Benefits 51,670 56,835 45,226 72,427 76,400 78,692 81,053 83,484 Professional & Technical Services 0 0 2,465 3,096 4,000 4,120 4,244 4,371 Other Purchased Services Supplies & Materials Student Support Services Employee Salaries & Benefits Support Services - Instruction Employee Salaries & Benefits 9,849 4,953 4,242 4,034 4,600 4,738 4,880 5,027 Other Purchased Services Transportation Services Transportation Services TOTAL 61,520 62,539 52,415 79,556 85,000 87,550 90,177 92,882 Beginning Fund Balance 242, , , , , , , ,029 Excess of over 15,957 55,323 11, (5,000) (7,150) (9,375) (11,676) Transfer From General Fund(s) ENDING FUND BALANCE 258, , , , , , , ,353 Proposed Reduction of expenditures and/or revenue enhancement will be a priority in order to balance future budgets. 108 Financial Section

31 The Driver Training fund tracks the expenditures associated with the driver education courses provided throughout the year for students of appropriate age. The state provides aid at a variable rate per student each year. The remaining revenue is received from student fees. State Aid and Student Fees Instructional Salaries/Benefits FORECAST Slightly increasing revenues with an offsetting increase in expenditures resulting in declining fund balances. Driver Training Fund by Function and Object Proposed Fees 128, , , , , , , ,339 State State Safety Aid 50,321 37,647 66,552 60,544 52,000 54,600 57,330 60,197 TOTAL 179, , , , , , , ,535 Instructional Services Employee Salaries & Benefits 90, , , ,417 59,000 59,590 60,186 60,788 Supplies & Materials 1,997 1,510 1,394 1,287 7,200 7,200 7,200 7,200 Support Services- School Administration Employee Salaries & Benefits 36,122 31,104 39,932 30,190 70,100 70,801 71,509 72,224 Operations & Maintenance Services Employee Salaries & Benefits 0 2, Repairs & Contracted Services 15,956 12,708 16,551 2,563 45,700 45,700 45,700 45,700 Transportation Fuel 11,442 8,356 7,106 7,287 6,800 6,868 6,937 7,006 Other 1,151 1,158 1, ,000 1,000 1,000 1,000 TOTAL 156, , , , , , , ,918 Beginning Fund Balance 115, , , , , , ,282 94,355 Excess of over 22,129 4,823 6,263 8,411 (27,800) (21,059) (13,927) (6,383) Transfer From General Fund(s) ENDING FUND BALANCE 137, , , , , ,282 94,355 87,973 Reduction of expenditures and/or revenue enhancement will be a priority in order to balance future budgets. Financial Section 109

32 State and Federal meal reimbursements and student meal charges Employee Salaries/Benefits, food purchases, equipment repair, and merchant fees to process online payments. FORECAST Steady increase in both revenues and expenditures as a result of increasing enrollment. The Food Service fund is established pursuant to state law to account for all monies received and expended for the food service program. This program is administered according to the state plan of child nutrition operations under which federal funds are received pursuant to federal acts relating to child nutrition. Olathe Public Schools Annual The programs are administered and meals are served on a non-profit basis. While the majority of revenue is from user purchases, additional amounts are received from Child Nutrition Programs, Federal and State reimbursement funds and transfers from the General Fund. Food Service Fund by Function and Object Meal Sales 6,414,670 6,629,024 6,703,924 6,544,561 8,244,443 8,326,887 8,410,156 8,494,258 Other 413, , , , , , , ,605 State State Aid 109, , , , , , , ,020 Federal Child Nutrition Aid 5,053,024 5,425,216 5,633,276 5,452,173 5,712,665 5,712,665 5,712,665 5,712,665 TOTAL 11,990,890 12,772,749 12,927,717 12,664,464 14,577,128 14,664,722 14,753,193 14,842,548 Operations & Maintenance Other Purchased Services 17,514 15,221 13,913 18,818 19,000 19,190 19,382 19,576 Utilities 151, , , , , , , ,120 Food Services Employee Salaries & Benefits 5,251,249 5,343,628 5,428,714 6,349,413 6,850,750 7,056,273 7,267,961 7,485,999 Professional & Technical Services 152, , , , , , , ,789 Other Purchased Services 77, , , , , , , ,253 Supplies & Materials 6,179,678 6,227,973 6,340,625 6,104,851 6,867,240 6,437,572 6,469,888 6,591,567 Equipment 276, , , , , , , ,029 TOTAL 12,106,123 12,515,980 12,723,611 13,353,320 14,944,990 14,530,291 14,799,185 15,192,333 Beginning Fund Balance 1,874,527 1,954,576 2,418,401 2,835,104 2,415,560 2,297,698 2,682,129 2,886,137 Excess of over (115,233) 256, ,105 (688,856) (367,862) 134,431 (45,992) (349,785) Transfer From General Fund(s) 195, , , , , , , ,000 ENDING FUND BALANCE 1,954,576 2,418,401 2,835,104 2,415,560 2,297,698 2,682,129 2,886,137 2,786, Financial Section

33 The Health Care Reserve fund is used to track the reserve for run-out claims should the District choose to change insurance providers. Health Care Reserve Fund by Function and Object Other 0 18,990,779 34,669,437 38,755,877 41,081,230 41,081,230 41,081,230 41,081,230 TOTAL 0 18,990,779 34,669,437 38,755,877 41,081,230 41,081,230 41,081,230 41,081,230 Instructional Services Employee Salaries & Benefits 0 9,816,491 30,419,917 35,807,876 37,956,349 37,956,349 37,956,349 37,956,349 TOTAL 0 9,816,491 30,419,917 35,807,876 37,956,349 37,956,349 37,956,349 37,956,349 Beginning Fund Balance 0 0 9,174,288 13,423,807 16,371,808 19,496,689 22,621,570 25,746,451 Excess of over 0 9,174,288 4,249,520 2,948,001 3,124,881 3,124,881 3,124,881 3,124,881 Transfer From General Fund(s) ENDING FUND BALANCE 0 9,174,288 13,423,807 16,371,808 19,496,689 22,621,570 25,746,451 28,871,332 Under a new health plan beginning, the reserve was carried as a liability rather than a fund balance. In the plan structure was changed again and a reserve was re-established. FORECAST are increasing at a higher rate than projected expenditures for. Both revenues and expenditures are expected to remain flat through, resulting in a growing fund balance. Financial Section 111

34 General Fund Support General Liability and Property Premiums FORECAST Slight increase in both revenues and expenditures resulting in little change in fund balance. The Risk Management fund provides for the protection of District resources and promotes the safety of students, staff and the public. Effective oversight and management of the fund assists with minimizing the District s exposure to liability and provides sound loss control Olathe Public Schools Annual practices. Funds transferred from the General fund (primary funding source) to the Risk Management fund are utilized for the purchase of insurance, payment of claims, as well as related costs arising from legal action and settlement. Risk Management Fund by Function and Object Other 748, , , , , , , ,564 TOTAL 748, , , , , , , ,564 Instructional Services Insurance 26, , , , , , , ,794 Central Services Professional & Technical Services 5,713 6,613 6,000 6,000 6,000 6,120 6,242 6,367 Operations & Maintenance Insurance 718, , , , , , , ,657 TOTAL 750, , , , , , , ,818 Beginning Fund Balance 838, , , , , , , ,326 Excess of over (2,239) (1) (328) 1,497 5,239 1,932 (8,734) (23,254) Transfer From General Fund(s) ENDING FUND BALANCE 836, , , , , , , ,072 If the fund balance begins to decline significantly, the District will opt to reduce expenditures. Funds for worker s compensation are allocated to each different job division code. See job categories under expenditures in the following chart. All medical bills are run through a re-pricing company which assists the District in receiving the lowest medical fees possible within the designated group of providers. consist of payments made to doctors and specialists as well as to pharmacies for prescription drugs. Professional fees are paid to the District s third party administrator, Thomas McGee and the Kansas State Department of Labor for assessment fees. The Worker s Compensation Reserve fund is self insured by the District. In addition, the District is covered by an excess insurance policy through Safety National that provides coverage for any single event that exceeds $400,000. Expenses are also incurred for operating costs and ergonomic equipment. 112 Financial Section

35 General Fund Support Employee Worker s Compensation Claims Worker s Compensation Fund by Function and Object Proposed Transfer From General Fund(s) 786,037 1,339,102 1,502,221 1,316,451 1,230,500 1,027,807 1,027,807 1,027,807 TOTAL 786,037 1,339,102 1,502,221 1,316,451 1,230,500 1,027,807 1,027,807 1,027,807 Instructional Services Employee Salaries & Benefits 235, , , , , , , ,000 Support Services- Students Employee Salaries & Benefits 3, , ,500 2,500 2,500 2,500 Support Services- Instructional Employee Salaries & Benefits 4,498 41,953 7,706 8,207 7,000 7,000 7,000 7,000 General Administration Employee Salaries & Benefits ,000 2,000 2,000 2,000 School Administration Employee Salaries & Benefits 19,278 15,473 50,333 42,530 25,000 25,000 25,000 25,000 Central Services Employee Salaries & Benefits 76,328 72,558 82,287 79,300 79,300 79,300 79,300 79,300 Insurance 169, , , , , , , ,007 Professional & Technical Services 1,304 1,267 1,195 2,000 2,000 2,000 2,000 2,000 Supplies & Materials 3,564 4,915 4,120 3,500 3,500 3,500 3,500 3,500 Equipment 4,374 3,072 1,938 2,500 2,500 2,500 2,500 2,500 Operations & Maintenance Services Employee Salaries & Benefits 253, , , , , , , ,000 Food Services Employee Salaries & Benefits 58,528 92, ,965 75,000 75,000 75,000 75,000 75,000 TOTAL 828,976 1,041,490 1,202,221 1,016,451 1,027,807 1,027,807 1,027,807 1,027,807 Beginning Fund Balance 945, ,388 1,200,000 1,500,000 1,800,000 2,002,693 2,002,693 2,002,693 Excess of over (42,939) 297, , , , Transfer From General Fund(s) ENDING FUND BALANCE 902,388 1,200,000 1,500,000 1,800,000 2,002,693 2,002,693 2,002,693 2,002,693 FORECAST Relatively flat revenues and expenditures. Financial Section 113

36 Student Instructional Material Fees New and replacement textbooks and associated instructional resources. FORECAST Relatively flat revenues and expenditures. The Instructional Materials and Resource Fee is collected on a yearly basis from all enrolled students. The authority for a school district to collect this fee is provided in Kansas Statutes (No ) and (No Fees). The Olathe Board of Education establishes these fees on an annual basis. The fee amount is published annually in the District Parent Calendar/ Handbook and on the District website. The amount is prorated based on the date the student is enrolled and reduced by 50% for students enrolled in school three hours per day or less. If the student leaves the District a refund is made based on the remaining quarters. Per Kansas Statute No , the Board of Education of any school district may purchase, for the use of the pupils of the Olathe Public Schools Annual district, any of the following: Workbooks and material which are supplemental to textbooks used in specific courses Specialized clothing and towels for use in physical education, shop and science courses Musical instruments for use in band or orchestra Instructional materials for the use of technology in specific courses Materials or supplies which are consumed in specific courses or projects or in which the pupil may retain ownership upon completion of such courses or projects. Textbook and Student Materials Fund by Function and Object Instructional Materials Fees 1,871,850 1,968,583 2,010,539 1,994,310 2,014,253 2,034,396 2,054,740 2,075,287 Other 0 16,231 19,276 21,759 21,976 22,196 22,418 22,642 TOTAL 1,871,850 1,984,814 2,029,815 2,016,069 2,036,229 2,056,592 2,077,158 2,097,929 Instructional Services Employee Salaries & Benefits 59,482 59,141 79,088 81,954 84,413 86,945 89,554 92,240 Supplies & Materials Textbooks & Instructional Resources 1,854,209 1,622,771 1,793,042 1,750,915 1,872,243 1,905,400 1,942,853 1,906,832 Support Services- Instructional Supplies & Materials 10,536 66,212 72,640 78,428 72,427 74,498 75,118 74,014 TOTAL 1,924,227 1,748,124 1,944,771 1,911,297 2,029,083 2,066,844 2,107,524 2,073,086 Beginning Fund Balance 1,686,850 1,634,472 1,871,161 1,956,206 2,060,977 2,068,124 2,057,872 2,027,505 Excess of over (52,378) 236,689 85, ,771 7,147 (10,252) (30,366) 24,843 Transfer From General Fund(s) ENDING FUND BALANCE 1,634,472 1,871,161 1,956,206 2,060,977 2,068,124 2,057,872 2,027,505 2,052, Financial Section

37 The Gifts and Grants fund is used to track the revenues and expenditures that are not included in other funds. The only monies reported in this fund are monies administered at the district level. Activity funds at the building level or federal grants are not included. Examples of funds included are: Drug prevention grants Gifts and Grants Fund by Function and Object from cities or counties, gifts from booster clubs, gifts from individuals, gifts from foundations, gifts from businesses and gifts from other government units not included in the budget. Contributions & Donations 810, , , , , , , ,258 TOTAL $810,641 $808,991 $953,765 $879,530 $880,762 $904,685 $888,326 $891,258 Instructional Services Employee Salaries & Benefits 97,687 96,074 73, , , , , ,235 Professional & Technical Services 111, ,147 66,995 91,310 94,151 84,152 89,871 89,391 Other Purchased Services 23,258 14,281 15,676 24,041 17,999 19,239 20,426 19,222 Supplies & Materials 317, , , , , , , ,336 Equipment 88,285 74, , , , , , ,756 Support Services - Student Employee Salaries & Benefits 3, Professional & Technical Services 11,517 14,648 22,436 13,723 16,935 17,698 16,119 16,917 Supplies & Materials 27,648 19,188 19,269 20,104 19,520 19,631 19,752 19,634 Support Services - Instructional Employee Salaries & Benefits 99,066 88,022 30,410 10,715 11,036 11,367 11,708 12,060 Professional & Technical Services ,493 17,011 16,439 24,314 19,255 20,003 21,190 Supplies & Materials 3,729 39,864 12,657 13,614 22,045 16,105 17,255 18,468 Community Services Supplies & Materials 4,188 9,959 75,867 18,484 34,770 43,040 32,098 36,636 TOTAL $787,663 $865,269 $964,066 $872,864 $892,804 $923,847 $904,397 $915,145 Beginning Fund Balance 702, , , , , , , ,685 Excess of over 22,978 (56,278) (10,301) 6,666 (12,042) (19,161) (16,072) (23,887) Transfer From General Fund(s) ENDING FUND BALANCE $725,873 $669,595 $659,294 $665,960 $653,918 $634,757 $618,685 $594,798 Grants and Donations Expenditure levels are driven by the outlined Grants purpose in addition to carryover dollars from prior years projects. FORECAST As revenues rise or decline, it is expected that expenditures will do the same. It is not an expectation of the district to maintain a balance in this fund. Balances are the result of prior year carryover. Financial Section 115

38 Property Taxes General Liability Insurance Premiums The Special Liability fund is used to pay the cost of the District s liability insurance premiums. In addition, the cost of any Olathe Public Schools Annual liability claims, including the cost of providing a defense, may be paid from this fund. Special Liability Fund by Function and Object Motor/Recreational Vehicles Taxes 43,549 48,396 48,718 46,507 37,679 41,447 45,592 50,151 County Ad Valorem Taxes 365, , , , , , , ,659 TOTAL 408, , , , , , , ,810 Support Services- General Admin. Insurance Premiums 258, , , , , , , ,666 TOTAL 258, , , , , , , ,666 Beginning Fund Balance 258, , , , , , , ,161 Excess of over 150, ,346 (24,840) 17,109 (24,512) 7,687 43,452 83,144 Transfer From General Fund(s) ENDING FUND BALANCE 408, , , , , , , ,305 Proposed FORECAST Steady increase in tax revenue from increasing assessed valuations more than offset increases in insurance premiums. 116 Financial Section

39 The Capital Improvement and Debt Service funds represent revenues and expenditures related to the capital improvements of District facilities. The Capital Outlay fund supports ongoing maintenance and renovations, while the Construction funds are related to bond elections approved for the construction of new schools and major additions to existing facilities. The Construction funds receive their revenue from the sale of bonds approved through bond elections from the community. The payback of those bond sales occurs through the Bond and Interest fund. For this reason, while we show the expenditures for construction, we do not include the expenditures in the summary sheets because that expense is already captured in the bond and interest payments. Capital Improvements and Debt Service Funds Summary Approved s by Function and Object Capital Improvements & Debt Retirement Funds Capital Outlay Bond & Interest Special Assessment TOTALS *Construction Motor/Recreational Vehicles Taxes 2,011,604 4,023, ,121 6,135,726 0 Other 973, ,941 1,100,000 County Ad Valorem Taxes 18,175,325 35,972, ,607 55,018,036 0 State State Aid 4,911,927 9,922, ,834,898 0 Federal Federal Tax Credits 0 2,787, ,787,860 0 Other Bond Proceeds Total 26,072,797 52,705, ,728 79,750,461 1,100,000 Instructional Services Equipment 7,500, ,500,000 0 Facility Technology Improvements ,000,000 Central Services 0 Employee Salaries & Benefits 65,266 65,266 Contracted Services- Copiers 1,307, ,307,079 0 Equipment- Technology 1, ,737 0 Operations & Maintenance Services 0 Employee Salaries & Benefits 14,414, ,414,734 0 Repairs & Contracted Services 6,092, ,092,921 0 Supplies & Materials 1,000, ,000,000 0 Equipment 998, ,263 0 Site Improvements 0 Benefit District Charges 0 0 1,420,500 1,420,500 0 Facilities and Construction Services Site Acquisitions 1,500, ,500, ,000 New Facility Construction ,730,000 Facility Improvements ,850,000 Facility Improvement 0 Repairs & Contracted Services 3,000, ,000,000 0 Bond & Interest Payments Bond Principal Payments 0 28,407, ,407,945 0 Bond Interest Payments 0 24,867, ,867,716 0 Other Bond Fees 0 1,750, ,750,000 0 TOTAL 35,880,000 55,025,661 1,420,500 92,326,161 38,080,000 Beginning Fund Balance 14,426,997 67,543,144 1,104,637 83,074,778 72,706,298 Excess of over (9,807,203) (2,319,725) (448,772) (12,575,700) (36,980,000) Transfer From General Fund(s) ENDING FUND BALANCE 4,619,794 65,223, ,865 70,499,078 35,726,298 *This Construction Fund tracks all expenditures associated with bond sales which were previously approved by the community in a Bond Election. The repayment of the bonds is reflected in the Bond and Interest Fund column. Since it would be a duplication of dollars to combine both the repayment of the bonds and the actual expenditure of the bond sales, we have removed the Construction Fund column from the Capital Improvement and Debt Service totals. Financial Section 117

40 property taxes and State Aid. Olathe Public Schools Annual Facility renovations, operational maintenance, technology replacement cycles, furniture replacement cycles, document imaging and student/ support equipment. FORECAST will continue to increase due to restoration of state aid on Capital Outlay, maintaining a Capital Outlay mill rate to 8.0 mills and assessed valuation growth. The Capital Outlay fund is used for the purpose of acquisition, construction, remodeling, additions, furnishing and equipping facilities necessary to carry out the mission of the District. Olathe Public Schools published a resolution specifying a five-year period for up to 8.0 mills on December 4, This resolution went into effect with the fiscal year and will require republication in December, The Capital Outlay fund s only revenue is from local sources. Capital Outlay Fund by Function and Object Proposed Motor/Recreational Vehicles Taxes 1,293,325 1,087,074 1,680,098 1,501,402 2,011,604 2,071,952 2,134,111 2,198,134 Other 227, , ,494 3,809, ,941 1,102,904 1,277,929 1,486,116 County Ad Valorem Taxes 14,291,983 9,501,501 16,482,728 17,895,103 18,175,325 18,720,585 19,282,202 19,860,668 State Capital Outlay State Aid 2,378, ,747,054 4,961,879 4,911,927 4,911,927 4,911,927 4,911,927 TOTAL 18,191,470 10,825,569 23,176,373 28,167,695 26,072,797 26,807,368 27,606,169 28,456,845 Instructional Services Equipment 8,967,645 3,987,617 2,202,634 4,554,792 6,500,000 3,242,537 3,265,776 2,836,105 Instructional Support Services Equipment 14,049 11,590 94,850 60,001 1,000, , , ,044 Central Services Employee Salaries & Benefits ,827 63,986 65,266 66,572 67,903 69,261 Contracted Services 907,770 1,000,486 1,078,073 1,842,678 1,307,079 1,227,217 1,458,991 1,331,096 Equipment ,900 1,720 1,737 1,754 1,772 1,790 Operations & Maintenance Services Employee Salaries & Benefits 0 2,102,726 8,115,111 11,617,387 14,414,734 14,703,028 14,997,089 15,297,031 Repairs & Contracted Services 1,684,324 1,672,489 1,700,614 3,231,052 6,092,921 2,876,280 2,566,751 2,845,318 Supplies & Materials 1,292,630 1,080, , ,152 1,000,000 1,064,618 1,015,590 1,026,736 Equipment 431, , , , , , , ,501 Facilities and Construction Services Site Acquisitions 698, , , ,936 1,500,000 1,500,000 1,500,000 1,500,000 Facility Improvement Repairs & Contracted Services 1,302,641 2,394,981 1,360, ,980 3,000,000 1,744,298 1,802,426 2,182,241 TOTAL 15,298,468 13,165,319 16,666,593 24,482,952 35,880,000 27,149,700 27,817,274 28,377,121 Beginning Fund Balance 8,426,277 11,319,278 8,979,528 10,742,254 14,426,997 4,619,794 4,277,462 4,066,356 Excess of over 2,893,001 (2,339,750) 6,509,781 3,684,742 (9,807,203) (342,332) (211,106) 79,724 Transfer to General Fund 0 0 (4,747,054) ENDING FUND BALANCE 11,319,278 8,979,528 10,742,254 14,426,997 4,619,794 4,277,462 4,066,356 4,146,080 It is not the expectation of the District to increase fund balances, but rather keep them relatively flat. With the continued passage of bond issues, the District intends on preserving Capital Outlay funds for annual maintenance and lease expenses. In other words, bond proceeds will fund the District s Capital Improvement Plan (CIP), with minimal reliance on Capital Outlay funds. 118 Financial Section

41 The Bond and Interest fund makes principal and interest payments on long-term debt obligations. Currently, the District is making payments on fourteen separate refunding and bond issues. The actual amortization schedules for the outstanding general obligation bonds in the District may be found in the Informational Section of this document. Property Taxes, State Aid and Federal Tax Credit Principal and Interest Payments on Bonds FORECAST Issuance of $129 million in General Obligation Bonds in 2016 and the issuance of $62 million in 2017 increased debt service requirements for several years. However, stronger than anticipated assessed valuation growth has allowed for a decrease in the mill rate. Bond and Interest Fund by Function and Object Proposed Motor/Recreational Vehicles Taxes 3,543,491 3,849,286 3,972,594 4,148,804 4,023,001 3,848,562 3,708,521 3,545,308 Other ,990,861 4,532,955 0 County Ad Valorem Taxes 29,799,450 31,718,861 34,008,518 33,972,062 35,972,104 34,412,338 33,160,150 31,700,759 State State Aid 14,184,827 13,696,838 13,849,223 12,341,255 9,922,971 9,492,707 9,147,288 8,744,713 Federal Federal Tax Credits 2,891,327 2,837,371 2,775,310 2,698,682 2,787,860 1,909,892 1,085, ,955 TOTAL 50,419,863 52,102,356 63,596,506 57,693,758 52,705,936 49,663,498 47,101,154 44,907,735 Bond & Interest Payments Bond Principal Payments 28,182,945 29,707,945 30,447,944 29,932,945 28,407,945 29,117,945 30,482,945 33,247,945 Bond Interest Payments 21,991,140 20,898,349 21,833,097 23,119,466 24,867,716 22,744,508 21,000,614 18,650,106 Other Bond Costs 148,956 91, , ,548 1,750, , , ,001 TOTAL 50,323,041 50,698,155 52,979,033 53,377,959 55,025,661 52,362,453 51,983,559 52,398,052 Beginning Fund Balance 51,108,851 51,205,672 52,609,873 63,227,345 67,543,144 65,223,419 62,524,464 57,642,059 Excess of over 96,822 1,404,201 10,617,473 4,315,799 (2,319,725) (2,698,955) (4,882,405) (7,490,317) Transfer From General Fund(s) ENDING FUND BALANCE 51,205,672 52,609,873 63,227,346 67,543,144 65,223,419 62,524,464 57,642,059 50,151,741 Bond 2016 On June 7, 2016, Olathe Public Schools passed a bond issue. The $156 million of new authority will fund projects along four threads: growth, safety and security, technology and aging facilities. Among these projects is the construction of the District s tenth middle school. It is the expectation of the District to maintain a fund balance that aligns with the plan of finance for all outstanding bonds. As debt declines, so too will fund balance. Financial Section 119

42 Property Taxes City and County Special Assessment in Benefit Districts FORECAST With the addition of the Hedge Lane Benefit District, revenues will increase in to offset the corresponding payment schedule. The Special Assessment fund pays for public improvements benefiting real property owned by the District. This fund is used to account for tax monies collected and distributed to other taxing municipalities Olathe Public Schools Annual to pay the District s portion of special assessment taxes on District-owned property. The fund is established and maintained in accordance with applicable state statutes. Fund balances are projected to decrease mirroring the decrease in special assessment obligations. Special Assessment Fund by Function and Object Proposed Motor/Recreational Vehicles Taxes 139, , , , , , , ,965 County Ad Valorem Taxes 972,859 1,037,340 1,120, , , , , ,896 TOTAL 1,112,110 1,152,754 1,250, , , , , ,861 Site Improvements Benefit District Charges 746, , , ,695 1,420, ,711 1,045,229 1,095,784 TOTAL 746, , , ,695 1,420, ,711 1,045,229 1,095,784 Beginning Fund Balance 335, ,058 1,281,172 1,689,108 1,104, , , ,416 Excess of over 365, , ,937 (584,471) (448,772) (11,298) (159,151) (300,923) Transfer From General Fund(s) ENDING FUND BALANCE 701,058 1,281,172 1,689,108 1,104, , , , , Financial Section

43 The Construction fund is used to track the actual expenses associated with projects included in community approved bond elections. After a successful bond election, bonds are sold as funds are needed to complete projects in a timely manner. The proceeds from the bond sales are invested and drawn down on a monthly basis to pay associated invoices. While the funds are identified as Construction, they are also used to track bond fees, technology and other related costs associated with the successful completion of constructing new facilities, additions, major renovations and maintenance projects. Bond Sales New facility construction, current facility additions/renovations, major facility maintenance and technology infrastructure and expansion. FORECAST With the influx of $61.7 million from the December, 2017 bond sale, Construction Funds were at a high point in, but continue to decline as construction progresses. Construction Fund by Function and Object Proposed Other 350, , , ,353 1,100, , , ,000 Other Bond Proceeds ,800,000 63,007, ,000,000 0 TOTAL 350, , ,103,985 63,794,095 1,100, ,000 20,510, ,000 Instructional Services Facility Technology Improvements 4,024,681 2,725,910 10,988,726 10,807,105 5,000,000 5,000,000 2,500,000 5,000,000 Facilities and Construction Services Site Acquisitions 215, ,791 3,023, , , , New Facility Construction 15,273,920 47,374,292 47,725,768 28,139,082 15,730,000 1,500, Facility Improvements 56,197,720 20,789,240 23,970,011 16,444,309 16,850,000 15,000,000 13,580,000 11,850,000 Debt Service Bond Fees , ,000 0 TOTAL 75,712,278 70,996,232 85,855,839 55,511,990 38,080,000 21,700,000 16,145,000 16,850,000 Beginning Fund Balance 163,216,655 87,854,474 17,176,048 64,424,194 72,706,298 35,726,298 14,701,298 19,066,298 Excess of over (75,362,181) (70,678,426) 47,248,146 8,282,104 (36,980,000) (21,025,000) 4,365,000 (15,925,000) Transfer From General Fund(s) ENDING FUND BALANCE 87,854,474 17,176,048 64,424,194 72,706,298 35,726,298 14,701,298 19,066,298 3,141,298 Fund balances are expected to decrease as a result of projects being completed. Financial Section 121

44 As noted on the preceding pages, the District s Capital Improvement Plan (CIP) is being financed through bond proceeds. CIP projects are currently being funded through the 2013 and 2016 Bond funds. The 2013 and 2016 Bond finance portion of the plan focuses on improvement projects falling into four threads: growth, safety and security, technology and aging facilities: Thread Includes Bond 2013 Bond 2016 Growth Safety and Security Olathe West High School; Elementary #36; Land; Elementary Additions; Middle School #10; Millcreek Center Renovation; Middle School Additions Safe and Secured Entrances (including classrooms without doors); Elementary Lockers; Additional Safety and Security Features $138,980,000 $51,200,000 $32,722,000 $9,830,000 Technology Aging Facilities Aged Equipment; Upgraded/Enhanced Digital Classrooms; Foundation Enhancement; Network, Wireless and Peripheral Hardware HVAC; Exterior Projects; Interior Projects; Bathrooms; Specialized Instructional Space; Instructional Support Space; Activity Centers Renovation $25,000,000 $43,815,000 $48,098,000 $51,155,000 Total $244,800,000 $156,000,000 The 2013 and 2016 Bond projects are currently in various stages of completion and are anticipated to take another two to three years to complete with the final projects being completed in 2020 or Olathe Public Schools traditionally utilizes bond funds to fund capital improvement plans in order to minimize the impact on the operating budget. However, this plan calls for the construction of new facilities to accommodate student population growth which will require operating funds to staff and equip these buildings. These additional costs have been considered in the development of the operating budget projections. 122 Financial Section

45 Growth Thread Capital Improvement Plan (CIP) Bond 2013 Utilized through % Spent Bond 2016 Utilized through Olathe West High School $114,380,000 $114,380, % $14,830,000 $14,830, % Summit Trail Middle School - - $29,500,000 $29,500, % Canyon Creek Elementary $13,000,000 $13,000, % $4,000,000 $4,000, % Elementary Additions AC, MP $600,000 $600, % - - Support Building Addition ODAC - - $870,000 $870, % Land (2013 -HS #6, MS #10) (2016 -Elem #36) $11,000,000 $11,000, % $2,000,000 $2,000, % Safety and Security Thread % Spent Subtotal-Growth $138,980,000 $138,980, % $51,200,000 $51,200, % Safe & Secured Entrances 28 schools, 3 support buildings $29,250,000 $29,250, % $7,500,000 $7,500, % Additional Security Features 48 schools, 8 support buildings $2,010,000 $2,010, % $1,230,000 $1,230, % Lockers 22 schools $1,462,000 $1,462, % $1,100,000 $1,100, % Technology Thread Subtotal-Safety and Security $32,722,000 $32,722, % $9,830,000 $9,830, % Aged Equipment Replacement District Wide $4,500,000 $4,500, % $16,565,000 $11,950,000 72% Upgrade/Enhance Digital Classrooms District Wide $5,250,000 $5,250, % $7,550,000 $3,275,000 43% Foundation Enhancement District Wide $10,000,000 $10,000, % $13,250,000 $8,850,000 67% Network Hardware District Wide $3,000,000 $3,000, % $3,500,000 $1,700,000 49% Wireless Hardware District Wide $1,750,000 $1,750, % $2,950,000 $1,950,000 66% Peripheral Hardware District Wide $500,000 $500, % - - Aging Facilities Thread Subtotal-Technology $25,000,000 $25,000, % $43,815,000 $27,725,000 63% HVAC 14 schools, 3 support bldgs $7,585,000 $7,585, % $4,555,000 $2,100,000 46% Exterior Finishes District Wide $5,763,000 $5,763, % $6,500,000 $3,250,000 50% Interior Finishes District Wide $12,025,000 $12,025, % $11,750,000 $5,425,000 46% Bathrooms 19 schools, 1 support bldg $1,167,000 $1,167, % - - Specialized Instructional Spaces 12 schools, 2 support bldgs $10,390,000 $10,390, % $4,500,000 $3,200,000 71% Instructional Support Spaces IRC,WD $1,700,000 $1,700, % - - Site Improvement 5 MS track renovations - - $1,400,000 $1,400, % Activity Centers Renovations ODAC,CBAC $9,468,000 $9,468, % $1,100,000 $1,100, % Property Renovation 11 schools - - $3,850,000 $3,850, % Support Building Renovation MCC - - $17,500,000 $17,500, % Subtotal-Aging Facilities $48,098,000 $48,098, % $51,155,000 $37,825,000 74% GRAND TOTAL $244,800,000 $244,800, % $156,000,000 $126,580,000 81% All 2013 Bond projects will be fully completed by year end with the exception of Canyon Creek (elementary #36) with slated completion in Bond 2016 projects began in with the final projects being completed in 2020 or Financial Section 123

46 property taxes and KPERS State Aid. State Reimbursement The Flow Through funds are funds for which the District simply acts as the fiscal agent for dollars moving from a revenue source to a state reimbursement. In the case of the Kansas Public Employee Retirement (KPERS) fund, the state pays each school District the State s portion of the monthly KPERS contribution for all participating employees. After these funds are received in the school district s financial accounts, per state statute the funds are to be returned to the state via a wire transfer within 24 hours. In essence, the funds simply make a round trip from the State s financial accounts, to the school district s financial accounts across the state and back again. NOTE: A detailed analysis and discussion of each of the Flow Through Funds appears on the following pages. Flow Through Funds Summary Approved s by Function and Object Flow Through Funds KPERS Extraordinary Cost of Growth Living TOTALS Motor/Recreational Vehicles Taxes 0 1,192, ,605 1,980,412 County Ad Valorem Taxes 0 18,434,552 8,219,239 26,653,791 State KPERS Aid 33,897, ,897,133 TOTAL 33,897,133 19,627,359 9,006,844 62,531,336 Other State Reimbursement 33,897,133 20,000,000 9,204,450 63,101,583 TOTAL 33,897,133 20,000,000 9,204,450 63,101,583 Beginning Fund Balance 0 372, , ,247 Excess of over 0 (372,641) (197,606) (570,247) Transfer From General Fund(s) ENDING FUND BALANCE Kansas Public Employees Retirement System (KPERS) Fund by Function and Object Proposed State KPERS Aid 18,887, ,486,840 33,897,133 34,575,076 35,266,577 35,971,909 TOTAL 18,887, ,486,840 33,897,133 34,575,076 35,266,577 35,971,909 Other State Reimbursement 18,887,533 15,910,354 15,546,581 24,486,840 33,897,133 34,575,076 35,266,577 35,971,909 TOTAL 18,887,533 15,910,354 15,546,581 24,486,840 33,897,133 34,575,076 35,266,577 35,971,909 Beginning Fund Balance Excess of over 0 (15,910,354) (15,546,581) Transfer From General Fund(s) 0 15,910,354 15,546, ENDING FUND BALANCE Financial Section

47 The Extraordinary Growth fund provides the legal vehicle to levy taxes approved by the State Board of Tax Appeals and reimburses the revenue back to the state. A school district is authorized to seek approval from State Board of Tax Appeals for authority to levy a property tax to pay certain costs associated with commencing operation of new school facilities. In order to seek authority, the school district must have begun operation of one or more new facilities in the preceding or current school year, or both; have adopted at least 25% Supplemental General fund; and have had extraordinary enrollment growth as determined by the State Board of Education. Under the procedure, the school district applies to State Board of Tax Appeals for authority to levy a property tax for an amount equal to the cost of operating the new facility that is not financed from any other source provided by law. for this increased budget authority can occur in either the General and/or Supplemental General funds. Property Taxes State Reimbursement FORECAST The opening of Olathe West High School caused a significant increase in funding in and to help offset the large increase in opening a fifth high school. The opening of Summit Trail Middle School in and Canyon Creek Elementary School in will cause an increase in funding that will then decrease through. Extraordinary Growth Fund by Function and Object Proposed Motor/Recreational Vehicles Taxes 988,128 1,130,845 1,082,648 1,060,262 1,192,807 2,017,398 1,749,919 1,403,449 County Ad Valorem Taxes 8,348,895 8,191,968 8,551,279 13,598,199 18,434,552 23,756,673 20,606,864 16,526,873 TOTAL 9,337,023 9,322,814 9,633,927 14,658,461 19,627,359 25,774,071 22,356,783 17,930,322 Other State Reimbursement 9,508,006 9,508,006 9,508,006 14,508,006 20,000,000 25,774,071 22,356,783 17,930,322 TOTAL 9,508,006 9,508,006 9,508,006 14,508,006 20,000,000 25,774,071 22,356,783 17,930,322 Beginning Fund Balance 452, ,457 96, , , Excess of over (170,983) (185,192) 125, ,455 (372,641) Transfer From General Fund(s) ENDING FUND BALANCE 281,457 96, , , During the 2013 legislative session, changes were made to the annual calculation of a district s authority. Rather than a threeyear period or tail being utilized to take the granted authority from 100% to zero at 25% less per year, a sixth year tail was implemented at an annual decrease of 15%. Financial Section 125

48 Property Taxes State Reimbursement FORECAST Only minor changes in Johnson County wealth after relative to the state average, leading to a small increase in revenue. The Cost of Living (COLA) fund provides the legal authority to levy a local tax that reimburses back to the state all revenue collected. Districts with higher than average cost of living indexes are granted the authority to levy a local tax to support the anticipated higher salaries necessary to be competitive in the geographic area. Olathe Public Schools Annual The maximum state wide amount for this authority is 5.00% of the General Fund. Based on cost of living factors, Olathe s maximum authority for is 4.59%, up from 4.26% in. The approved budget for uses all of this authority. Cost of Living Fund by Function and Object Proposed Motor/Recreational Vehicles Taxes 736, , , , ,605 1,001,960 1,018,993 1,036,316 County Ad Valorem Tax 4,959,168 7,514,536 6,786,477 6,416,578 8,219,239 8,358,966 8,501,068 8,645,587 TOTAL 5,695,813 8,141,549 7,542,864 7,350,251 9,006,844 9,360,926 9,520,061 9,681,902 Other State Reimbursement 5,779,351 8,123,273 7,308,439 7,619,704 9,204,450 9,360,926 9,520,061 9,681,902 TOTAL 5,779,351 8,123,273 7,308,439 7,619,704 9,204,450 9,360,926 9,520,061 9,681,902 Beginning Fund Balance 297, , , , , Excess of over (83,538) 18, ,425 (269,453) (197,606) Transfer From General Fund(s) ENDING FUND BALANCE 214, , , , For, Olathe Public Schools is experiencing an increase in COLA related Ad Valorem taxes. This is caused by an increase in COLA authority. This authority was increased due to the decrease in the State average home prices vs. our average home price in. In other words, Olathe s cost of living has increased, thus increasing the need to levy taxes to cover a higher cost of living. 126 Financial Section

49 The Agency fund (Building Student Activities) provides for monies for student activities outside the classroom which complement the curriculum. These activities include those of student clubs and organizations. The students in the clubs or organizations not only participate in the activities of the group, but they are also involved in the management of the activities as well as the disbursement of the organizations funds. from these funds are subject to the approval of the student organization and its sponsor, not the School District s Board of Education. are obtained through student sources including selling of products, selling of tickets for an activity, providing a service for a fee, small donations and other student money-making activities. Funds are used to accomplish the goals determined by the student organization. Student Fundraising and Community Donations Student Activities FORECAST As revenues rise slightly, it is expected that expenditures will do the same. Agency Fund Summary (Building Student Activities) by Function and Object Agency Fund Proposed Student Activity Revenue 4,436,370 4,837,978 4,723,687 5,064,305 4,765,585 4,847,889 4,850,366 4,882,036 Other Sources 14, ,764 1,030 1,199 1,498 TOTAL 4,451,073 4,838,332 4,723,687 5,064,305 4,769,349 4,848,918 4,851,565 4,883,534 Instructional Services Employee Salaries & Benefits 39,227 38,604 32,872 48,553 39,814 39,961 40,300 42,157 Supplies & Materials 4,288,959 4,576,633 4,527,459 5,177,767 4,642,704 4,731,141 4,769,768 4,830,345 TOTAL 4,328,186 4,615,237 4,560,331 5,226,320 4,682,518 4,771,102 4,810,068 4,872,502 Beginning Fund Balance 1,543,002 1,665,889 1,888,985 2,052,340 1,890,325 1,977,155 2,054,972 2,096,469 Excess of over 122, , ,356 (162,016) 86,831 77,816 41,497 11,032 Transfer From General Fund(s) ENDING FUND BALANCE 1,665,889 1,888,985 2,052,340 1,890,325 1,977,155 2,054,972 2,096,469 2,107,501 Financial Section 127

50 In State Aid was replaced with the Temporary Assistance for Needy Families (TANF) federal funds. Olathe Public Schools Annual Majority of all funds flow through the Consortium to Districts in support of local programs. Fund balances are driven by Consortium financial decisions and not the Olathe School District. Parents as Teachers is a state program that helps parents understand the development of their children ages birth to 36 months. Areas discussed and monitored include speech and language, motor development and social and intellectual development; parenting and family well-being. Parents are visited in their homes, resources centers are available, developmental screenings are conducted and group connections are provided. Involving parents in our school system early and helping them understand their child s development helps prepare parents and their children for school success. The majority of revenue received is from state aid. This particular fund tracks the financial activity of the Consortium which oversees the Parents as Teachers program for four local school districts. While the District has representation in the Consortium s activities, it only acts as the fiscal agent when it comes to financial management, grant writing and oversight. Fiscal Agent Fund Summary (Parents as Teachers Consortium) by Function and Object Fiscal Agent Fund Proposed Other 170,355 91, , , , , , ,527 State PAT State Aid 766, , , , , , ,994 Federal TANF , , TOTAL 936,968 1,052, ,035 1,324,556 1,198,199 1,213,098 1,228,204 1,243,520 Support Services- Students Employee Salaries & Benefits 155, , , , , , , ,875 Professional & Technical Services 18,122 10,525 62,920 21,939 59,875 59,276 58,683 58,097 Other Purchased Services 610, , , , , , , ,677 Supplies & Materials 18,221 74,511 6,790 9,540 14,763 14,616 14,470 14,325 Equipment 39,564 15,593 70,805 5,957 16,000 15,840 15,682 15,525 Other 4,600 7,609 44,025 9,785 20,775 20,567 20,362 20,158 TOTAL 846, , ,592 1,039,808 1,228,648 1,218,550 1,233,553 1,248,657 Beginning Fund Balance 205, , , , , , , ,761 Excess of over 90, ,025 (71,558) 284,748 (30,449) (5,452) (5,350) (5,136) Transfer From General Fund(s) ENDING FUND BALANCE 295, , , , , , , , Financial Section

51 Financial Section 129

52 II. Long Term Debt Obligations Olathe Public Schools Annual In planning for bonded indebtedness, the District adopted the following debt management procedures which are periodically reviewed and amended as appropriate. An overriding goal in developing all practices and procedures dealing with debt issuance is to maintain or upgrade the District s credit ratings. It shall be the practice or procedure to: A. Analyze a pay as you go approach for any capital need prior to considering borrowing. B. Limit the repayment of any borrowing to no more than the design life or appreciable life of the items being financed. C. Use credit enhancement only when it results in a net present value reduction of interest expense when compared to the cost of the credit enhancement. D. Prior to entering into a new indebtedness, conduct an analysis to determine the impact on the financial condition of the District and to aid in developing the structure of principal repayment schedule. This analysis shall include, but not be limited to: current and future tax impact projected increase in tax base state aid population trends capital needs of underlying and overlapping governmental jurisdictions interest rate environment E. Analyze the availability and appropriateness of legal financing alternatives pursuant to Kansas law and Federal regulations, including, but not limited to, general obligation notes and bonds, lease financing, certificates of participation and no fund warrants. F. Support state and federal legislation that provides the District with flexibility in its financing needs. G. Support appropriate economic and commercial development and consider the consequences of any tax abatements proposed by the county or a city within the District. H. Support intergovernmental cooperation in the consideration and issuance of governmental public purpose debt. I. Consider conservative financial ratios in the following categories: aggregate unencumbered fund balances direct debt to tangible assessed valuation ratio direct overlapping debt to tangible assessed ratio debt per capita ratio debt service fund levy, as a percentage of total expenditures 130 Financial Section

53 II. Long Term Debt Obligations J. Constantly monitor the market to determine when there are sufficient net present value interest savings, as determined by the District, to be derived from refunding any of its outstanding obligations. K. Consider any new and innovative financing techniques that provide economic benefits to the District and its patrons yet balancing the conservative fiscal attitude of the District. The following schedule is the STATEMENT OF INDEBTEDNESS filed with the state of Kansas each year as part of the state budget documents. In accordance with Kansas state statute, the aggregate amount of bonds outstanding at any one time cannot exceed 14% of the assessed valuation of taxable tangible property within the school district s geographical borders. However, the Kansas State Board of Education can issue an order authorizing a school district to vote and issue bonds in an amount exceeding the general 14% limitation. Olathe Public Schools has obtained such orders. Issue Purpose of Debt Date of Issue Interest Rate% Statement of Indebtedness Amount of Bonds Issued Amount Outstanding 07/01/18 Date Due Amount Due Amount Due July-December 2019 Interest Principal Interest Principal Interest Principal 2008A GO Bonds 02/15/ % 50,000,000 2,460,000 Mar/Sept Sept 680,175 2,460, A GO/BAB Bonds 06/01/ % 95,000,000 10,170,000 Mar/Sept Sept 4,069,070 4,995,000 1,976,468 5,175, B GO Refunding 06/01/ % 21,900,000 1,665,000 Mar/Sept Sept 33,300 1,665, A GO/BAB Bonds 07/01/ % 26,500,000 4,475,000 Mar/Sept Sept 1,119,815 1,450, ,314 1,490, C GO Refunding 07/01/ % 20,510,000 10,020,000 Mar/Sept Sept 300,600 5,010, ,200 5,010, A GO/QSCB Bonds 05/24/ % 6,000,000 4,328,220 Mar/Sept Sept 273, , , , A GO Bonds 03/26/ % 11,000,000 10,465,000 Mar/Sept Sept 286, , , , B GO/QSCB Bonds 03/26/ % 17,500,000 17,500,000 Mar/Sept Sept 708, , C GO Bonds 08/20/ % 204,385,000 31,270,000 Mar/Sept Sept 9,454,988 5,475,000 4,672,744 5,690, A GO Bonds 09/15/ % 129,070, ,080,000 Mar/Sept Sept 4,465,426 6,395,000 2,200,738 8,020, B GO Refunding 09/15/ % 197,870, ,870,000 Mar/Sept Sept 493, ,569 2,495, C GO Refunding 09/15/ % 61,150,000 61,150,000 Mar/Sept Sept A GO Bonds 12/21/ % 61,730,000 61,730,000 Mar/Sept Sept 2,982, ,248, , B GO Refunding 12/21/ % 17,765,000 17,765,000 Mar/Sept Sept TOTALS $554,948,220 $24,867,718 $28,407,945 $11,870,615 $28,908,972 The aggregate amount of bonds which the District can issue without authority from the State Board of Education is 14.0% of the District s assessed valuation. During, that equated to $328,423,682. Outstanding principal indebtedness will increase $31.1 million from to ; the net effect of a $61.7 million 2017A bond issuance less principal payments and refunding of series 2010A bonds. As of June 30, 2018, the District had outstanding issues totaling $554,948,220 (22.60% of the District s assessed valuation). The District also has another $20,000,000 of unissued authority. Financial Section 131

54 II. Long Term Debt Obligations Olathe Public Schools Annual Debt Service Since 1965, Olathe Public Schools has passed 17 bond referendums totaling $1,051,360,000. The most current election occurred June 7, The public supported a $156,000,000 Capital Improvement plan with 72.2% of the voters approving. The District currently has fourteen outstanding bond issues. Other Post-Employment Benefits Beginning with , based on compliance requirements from GASB Statements 74 and 75, the District began reporting the costs and financial obligations provided our retired staff. The most significant post-employment benefit (OPEB) impacting the District will be with health insurance. For, the District s annual OPEB cost, the annual OPEB cost contributed to the plan and the net change in obligation for the year was $1,987,568, $1,392,859 and $15,603,467, respectively. The District funds the obligation on a pay-as-you-go basis, as cash is expended towards the liability. Ratio of District Bond Indebtedness to Assessed Valuation Note: In 2017, the District sold $61.7 million in General Obligation bonds. In addition, one Advanced Refunding occurred involving the 2010A Bond Series. The sale and refunding increased the number of outstanding issues to fourteen. 132 Financial Section

55 III. Fund Balance Reserves In the fund financial statements, governmental funds report fund balance in the following classifications: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed fund balances include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the Board of Education. Assigned fund balances include amounts that are constrained by the District management s intent to be used for specific purposes, but are neither restricted nor committed. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts is considered to be spent first. When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balance is available, the following is the order in which resources will be expended: committed, assigned and unassigned. The following is the detail for fund balance classifications in the June 30, 2017 financial statements: Major Governmental Cash Balance Reserves General Fund Supplemental General Fund Special Education Fund Bond and Interest Fund Capital Outlay Fund 2013 Construction Fund 2016 Construction Fund Nonmajor Governmental Funds Total Governmental Funds Fund Balances: Nonspendable Inventory $64, $64,215 Restricted for: Special Education Debt Retirement ,227, ,689,107 64,916,452 School Construction and Equipment ,044,672 54,379,522-64,424,194 Instruction ,809,319 14,809,319 Instructional Support Staff Operations and Maintenance , ,424 Assigned for: Special Education Instruction - - 6,682, ,682,883 School Construction and Equipment ,231, ,231,553 Operations and Maintenance 84, ,860 Instruction 203,780 1,728, ,100 2,442,075 Central Services 107, ,470 Student Support ,863 13,353 Other Support Services 21, ,199 Instructional Support Services 79, ,175 80,353 Unassigned: (304,572) (304,572) TOTAL FUND BALANCES $561,192 $1,728,195 $6,682,883 $63,227,345 $11,231,553 $10,044,672 $54,379,522 $17,238,416 $165,093,778 Financial Section 133

56 KSA 72-64c01: Sixty-five percent of moneys to be spent on instruction. (a) It is the public policy goal of the state of Kansas that at least 65% of the moneys appropriated, distributed or otherwise provided by the state to school districts shall be expended in the classroom or for instruction. (b) All moneys attributable to the increase in the amount of base state aid per pupil under the provisions of this act shall be expended in the classroom or for instruction. (c) Superseded (d) As used in this section, instruction means the activities dealing directly with the interaction between teachers and students and may be provided in a school classroom, in another location such as a home or hospital and in other learning situations such as those involving co-curricular activities. Instruction also may be provided through the internet, television, radio, computer, multimedia telephone, correspondence that is delivered inside or outside the classroom and other teacherstudent settings or through other approved media. Instruction also includes the activities of aides or classroom assistants of any type including, but not limited to, clerks, graders and teaching machines which assist in the instructional process. IV. Financial Performance Functional Expenditure Percentages The following graph reflects all (the most recent data available from the state of Kansas) Operating/Dependent fund expenditures. This graph compares the percentage of expenditures within each functional area. A key observation is that 72.6% of the total expenditures went towards Classroom Instruction, Student/ Instructional Support from Counseling, Nursing and Library Media services. 100% Comparison of Olathe s Distribution of Operating with State Averages The following graph compares Olathe s actual expenditures with state averages. The data was converted to dollar amounts to show how Olathe s allocation of $3,852 per student is spread out over the major functional categories. [Note: $3,852 was the Base State Aid Per Pupil for the school year.] 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Olathe Public Schools Annual 72.6% Expenditure percentages Food Services Transportation Services Other Support Services Operations & Maintenance School Administration General Administration Instructional, Student Support Services, Instructional Support Staff Currently, there is a great debate in the State of Kansas as to what expenditures should be included under this definition. Olathe Public Schools has consistently measured the percentage of expenditures spent for instruction, as well as instructional support and student support services and believes this must accurately reflect what has been spent as instruction. The percentage of budget Olathe spends in the categories for Instruction, Student Support Services, School Administration, Transportation and Other Support Services (Business, Human Resources, Student Services, Planning and Technology) are higher than state averages. The percentage of budget Olathe spends in the categories of General Administration, Operations and Maintenance, Instructional Support Staff, and Food Services are lower than state averages. 134 Financial Section

57 IV. Financial Performance $4,000 $3,500 $3,000 Comparison of Olathe s Distribution of Operating with State Averages State Olathe $2,500 $2,000 $1,500 $1,000 $500 $ Instruction Services Student Support Instructional Support Staff General Administration School Administration Operations & Maintenance *Data is from, the most current year for which state comparative data is available. Transportation Services Other Support Food Services Community & Adult Services Historical Comparison of Per Pupil Adjusted for CPI This graph compares the actual expenditures of the combined General funds per student in Olathe since The top line shows the actual real dollar expenses while the bottom line adjusts for Consumer Price Index. The CPI adjusted real spending power per student leveled off since the new Education Finance and Quality Performance Act of Dollar Adjusted for CPI Financial Section 135

58 136 Financial Section