FY 19 Preliminary Budget

Transcription

1 FY 19 Preliminary Budget Striving to provide top notch finance and logistical support to acheive world-class personalized learning for every student. Independent School District th Street, Lakeville, MN Dakota County and Scott County ISD194.org

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3 Table of Contents Page Letter of Transmittal i Board of Education and Executive Cabinet 1 Organization Chart 2 Schools and Principals 3 Enrollment 4 Staffing 5 Level One Summary of All Funds 6 Level Two Summary of General Fund 8 Level Three Summary of Individual Funds Special Revenue Funds Food Service 10 Community Service 11 Capital Projects Building Construction Fund 12 Regular Debt Service 13 Self Insured Dental Internal Service Funds 14 Agency and Trust Funds 15 Appendix General Fund Revenues by Source 16 General Fund Spending by Site 17 Budget Timeline 18 Capital Funding Summary of Sources and Uses 19 Capital Funding Details 20 Finance Profile and Benchmarks 22

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5 th Street West Lakeville, MN Phone: (952) Fax: (952) June 26, 2018 To the Board of Education, citizens, and employees of Independent School District #194 INTRODUCTION Pursuant to the Minnesota Statute 123B.77, we are pleased to submit the District s for your review and approval. This budget has been developed with considerable input from the Board of Education, the District s members of the Superintendent s Cabinet, and the District s learning leaders. It was prepared in accordance with the budget planning guidelines reviewed by the District s Finance Advisory Council and Board of Education in January and February This budget seeks to continue to support the District s mission of partnership of students, families, staff, and community committed to excellence and keep expenditures and taxpayer burden to a minimum. This budget has been designed to give readers a better understanding of the financial structure and budgeting process of the District. All budgets have been organized using a pyramid approach so readers may progress from an overview to greater levels of detail (macro to micro). This approach starts with a summary of all fund categories and then presents individual funds. Readers are able to work their way down the pyramid and budget details become more specific as they move from the beginning to the end of the document. REPORTING ENTITY AND ITS SERVICES The District is an instrumentality of the state of Minnesota established to function as an educational institution. The District is a fiscally independent entity and has the exclusive responsibility and accountability for the decisions it makes. It has statutory authority to adopt its own budget, levy taxes, and issue bonded debt without the approval of another government. A Superintendent is appointed by the Board of Education and is responsible for administrative control of the district. The District is an award winning school district in the southern Twin Cities Metropolitan Area. The District serves approximately 11,000 students in Dakota and Scott counties and covers 86 square miles, including most of Lakeville, parts of Burnsville, and Elko New Market, and portions of Eureka, Credit River, New Market, and Spring Lake townships. The District is organized by elementary schools serving students in kindergarten through grade 5, middle schools serving grades 6 8, and the high schools serving grades The district operates 16 educational facilities: 2 high schools, an Area Learning Center, 3 middle schools, 8 elementary schools, 1 early education program, Community Education and Minnesota Center for Advanced Professional Studies site, and 1 online program, LinK12. REPORT FORMAT This budget format is based on standards established in 2013 when the report was reformatted. The budget document is presented in three parts: 1. Introductory Section: Contains this transmittal letter, the list of Board of Education members and the Superintendent s Executive Cabinet members. 2. Financial Section: Organized into four levels, using a pyramid approach to provide a further level of detail in each level. The four levels are as follows: i. Level One Summary of All Funds ii. Level Two Summary of General Fund iii. Level Three Summary of Individual Funds iv. Level Four Summary of Individual School/Sites 3. Informational Section: Provides selected financial, demographic, and economic data. i

6 FINANCIAL AND BUDGETARY CONTROL The management of the District is responsible for establishing and maintaining internal controls designed to ensure that the are protected from theft, misuse or losses. The internal control system is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of the costs and benefits requires estimates and judgments by management. The District s budget process is based on the development of a budget projection model that attempts to project resources and expenses over a multiple year period. The budget projection is used by the Board of Education and the administration to determine budget parameters and staffing guidelines. This budget has been prepared in accordance with the budget parameters and personnel staffing guidelines approved by the Board of Education. Legal budgetary control is at the fund level; however, directors, principals, coordinators and other budget managers are responsible for monitoring their individual budgets within each of the funds. All appropriations lapse at fiscal year end. DISTRICT MISSION AND STRATEGIC PLAN Mission Statement Independent School District #194 is a partnership of students, families, staff, and community committed to excellence. Vision Statement World class, personalized learning ensuring success for every student. ii

7 FISCAL SUMMARY The following is a summary listing of the budget for each of the fund groups contained in the : Projected Revenues Estimated Fund Fund Balance Over/Under Fund Balance Fund Number Jul y 1, 2018 Revenues Expenditures Expenditures June 30, 2019 General 01 16,599, ,244, ,175,278 (930,440) 15,669,074 Food Servi ce 02 1,768,986 5,440,972 5,435,887 5,085 1,774,071 Communi ty Servi ce ,986 6,802,639 7,147,922 (345,283) 609,703 Bui l di ng Cons tructi on 06 9,551,595 40,000 4,480,000 (4,440,000) 5,111,595 Debt Servi ce 07 3,337,706 17,006,741 17,403,125 (396,384) 2,941,322 Trus t , , ,750 19, ,210 Sel f Ins ured Denta l Pl a n ,051 1,320,000 1,300,000 20, ,051 FINANCIAL PROSPECTS FOR FUTURE YEARS 33,125, ,530, ,597,962 (6,067,772) 27,058,026 With the exception of the voter approved operating levy and capital projects levy, the District is dependent on the state of Minnesota for its revenue authority. Over the past decade, state funding for education has not kept pace with inflation. Increases to the basic general education formula allowance were significantly less than inflation. In , with improvements in the state s budget, the 2013 Legislature provided the equivalent of 1.5 percent and 2.0 percent per pupil unit annual increases to the basic general education formula allowance for the and school years respectively, and new funding for full day kindergarten. In 2014, based on a projected surplus of $1.23 billion, the 2014 Legislature adopted a supplemental budget which included a $25 per pupil unit increase to the basic general education formula allowance. With continued improvements in the State s economy, the 2015 Legislature approved a 2 percent increase to the basic general education formula allowance for the and school years during the June 2015 special session. This current legislation appropriated a 2.0% increase in general education formula allowance each year for the and school years. These funding increases from the state along with the additional funds from the passage of the November 2015 operating levy and capital levy enable the district to maintain quality programs and not have to make significant budget adjustments for the school year. ACKNOWLEDGEMENTS This budget document requires many hours of preparation, deliberation, and review on the part of the Board of Education, Finance Advisory Council members, superintendent, budget managers,and members of the finance department. Many thanks go to all involved for their efforts in preparing this important budget document. Respectfully, Michael A. Baumann Andrew A. Sarnow Joseph M. Bertram Superintendent Executive Director of Business Services Controller iii

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9 Board of Education and Executive Cabinet: Board of Education Name Term on Board Expires Position Michelle Volk December 31, 2018 Chairperson Terry Lind December 31, 2020 Vice Chairperson Jim Skelly December 31, 2018 Clerk Bob Erickson December 31, 2020 Treasurer Judy Keliher December 31, 2020 Director Kathy Lewis December 31, 2018 Director The six board members are elected at large during the general municipal elections that are held biennially in odd numbered years; they serve four year terms. Each year, as required by law, the board elects a chair, vice chair, a clerk, and a treasurer. Board of Education (BOE) meetings are usually held twice a month. Minutes of BOE meetings (and the Committee of the Board meetings) are posted to the BOE website after their approval at the following month s BOE meeting at Executive Cabinet Name Michael Baumann Andrew Sarnow Tony Massaros Dr. Emily McDonald Renae Ouillette Position Superintendent Executive Director of Business Services Executive Director of Administrative Services Assistant Superintendent of Teaching and Learning Executive Director of Special Education and Student Services The Superintendent s Executive Cabinet provides leadership to facilitate the successful operations of District programs, activities, and services within the parameters of Board of Education policy. 1

10 Lakeville Area Public Schools Preliminary Budget Organization Chart: 2

11 Schools and Principals: The District is organized by elementary schools serving students in kindergarten through grade 5, middle schools serving grades 6 8, and the high schools serving grades The District operates 16 educational facilities: 2 high schools, an Area Learning Center, 3 middle schools, 8 elementary schools, 1 early education program, Community Education, and 1 online program, LinK12. Elementary Schools School Abbreviation Principal Cherry View Elementary CVE Paul Helberg Christina Huddleston Elementary CHE Jill Kelly Eastview Elementary EVE Taber Akin John F. Kennedy Elementary JFK Elizabeth Anderson Lake Marion Elementary LME Bret Domstrand Lakeview Elementary LVE Peter Otterson Oak Hills Elementary OHE Wade Labatte Orchard Lake Elementary OLE Marilynn Smith Middle Schools School Abbreviation Principal Century Middle School CMS Jason Bakke Kenwood Trail Middle School KTMS Kathleen Eisenthal McGuire Middle School MMS Joshua Alexander High Schools School Abbreviation Principal Lakeville North High School LNHS Marne Berkvam Lakeville South High School LSHS John Braun Area Learning Center ALC Jodi Danielson Online Schools School Abbreviation Principal LinK12 Lakeville Online L12 Heather Rabanus 3

12 Enrollment: With a population of approximately 11,200 students, is currently the twelfth largest public school district in Minnesota. The District s enrollment has remained stable over the previous five years, with changes less than 1 percent year to year. Going forward the district is projects modest enrollment increases of approximately 1.5 percent annually. This is the result of heavy construction and development in the District over the last few years. Enrollment History and Projections Enrollment 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 10,978 10,915 10,868 10,993 11,110 11,228 11,410 11,548 11,728 11, ,859 3,782 3,753 3,875 3,824 3,979 4,067 4,141 4,236 4,396 2,632 2,554 2,576 2,599 2,674 2,708 2,725 2,713 2,756 2,747 3,713 3,778 3,700 3,704 3,701 3,654 3,715 3,776 3,802 3, Fiscal Year Grades 9 12 Grades 6 8 Grades 1 5 Kindergarten Total (Includes Pre K) Outgoing classes (graduates) are expected to be larger than incoming kindergarten classes by 157 in FY19. This long standing trend has created an enrollment gap that is showing improvements, as new housing and developments are going up throughout the community. Open enrollment supplements this deficit as the district had a positive gap between incoming students from outside of the district and resident students attending other districts Kindergarten Grade Enrollment Gap (292) (305) (260) (296) (226) (157) (201) (166) (165) (154) 4

13 Staffing: Below is a breakout of the District s general fund staff by Site/Department. Administrative Instructional Support School Name Executive Cabinet Non-Affiliate Principal Dean Classroom Teacher Counselor Nurses English Learner Special Education TOSA LEAF Custodian Total FTEs Elementary Schools Cherry View Eastview Christina Huddleston John F. Kennedy Lake M arion Lakeview Oak Hills Orchard Lake Early Childhood Special Education Total Elementary Schools M iddle Schools Century Kenwood Trail McGuire Total M iddle Schools High Schools Lakeville North High School Lakeville South High School Area Learning Center Total High Schools Online Schools Link Total Online Schools Support Departments Buildings and Grounds Business Services Communications Instructional Technology Human Resources Data Analytics Special Education and Student Services Superintendent Office Teaching and Learning Equity and Innovation Teacher Development and Evaluation Total Support Departments Grand Total ,

14 Summary of All Funds (continued) All Funds 6

15 Summary of All Funds (continued) All Funds Funds Overview Below is a summary of all the governmental funds, internal service funds and fiduciary funds of the District. The governmental funds included are the general fund, special revenue funds which include food service, and community service, building construction fund, and the regular debt service fund. This summary provides an overview of the financial information for all of the district funds. Detailed analysis of the individual funds follows this page. Projected Revenues Estimated Fund Fund Balance Over/Under Fund Balance Fund Number Jul y 1, 2018 Revenues Expenditures Expenditures June 30, 2019 General 01 16,599, ,244, ,175,278 (930,440) 15,669,074 Food Servi ce 02 1,768,986 5,440,972 5,435,887 5,085 1,774,071 Communi ty Servi ce ,986 6,802,639 7,147,922 (345,283) 609,703 Bui l di ng Cons tructi on 06 9,551,595 40,000 4,480,000 (4,440,000) 5,111,595 Debt Servi ce 07 3,337,706 17,006,741 17,403,125 (396,384) 2,941,322 Trus t , , ,750 19, ,210 Sel f Ins ured Dental Pla n ,051 1,320,000 1,300,000 20, ,051 33,125, ,530, ,597,962 (6,067,772) 27,058,026 Millions FY FY FY FY FY FY FY FY FY FY General Fund All Funds 7

16 General Fund Operating Fund Fund Overview The general fund is the primary operating fund of the district and accounts for the revenues and expenditures associated with providing a public education to children. Below is a summary of the actual and budgeted general fund activity for the through school years with revenues reported by the source and expenditures reported by object Actual Actual Actual Final Budget Prelim Budget Revenues Other 2,685,663 3,794,336 4,297,982 2,540,000 2,890,000 State sources 90,270,231 90,629,653 95,819,360 97,585, ,126,998 Property taxes 19,565,556 20,793,410 26,047,700 26,342,803 29,469,840 Federal sources 2,390,604 2,508,217 2,729,768 2,776,536 2,758,000 Total revenue 114,912, ,725, ,894, ,244, ,244,838 Expenditures Salaries and wages 64,340,579 67,610,407 73,059,539 76,045,478 78,085,019 Employee benefits 26,275,834 28,431,954 29,128,454 31,337,565 32,454,196 Purchased services 12,263,866 13,068,642 15,010,087 15,142,999 16,024,238 Supplies and materials 2,839,559 3,206,908 3,943,756 4,446,709 4,272,546 Capital expenditures 3,152,985 2,897,170 4,117,458 5,157,882 5,244,775 Other expenditures (275,547) 884,099 1,237, ,689 1,094,504 Total expenditures 108,597, ,099, ,496, ,900, ,175,278 Net change in fund balances 6,314,778 1,626,436 2,398,192 (3,655,357) (930,440) Fund balances Beginning of year 9,915,465 16,230,243 17,856,679 20,254,871 16,599,514 End of year 16,230,243 17,856,679 20,254,871 16,599,514 15,669,074 The General Fund revenue is projected to increase by $7.0 million, or 5.4% from the Final FY18 budget. Increases in State sources and Property Taxes of $3.5 million and $3.1 million respectively, make up the majority increases. Below are the details explaining this increase: Property Taxes largely increased as the result of 4 main factors: 1) Increase in the estimated pupil units used in FY18 Property Taxes Levy of 370 (3.2%) over the FY17 Property Taxes Levy Calculations. This increased the total levy by approximately $780 thousand. 2) Inflation increase of approximately 2.0% on the voter approved referendum. This resulted in approximately $250 thousand increase. 3) Last year of phasing in Long Term Facilities Maintenance (LTFM) formula allowance from $292.00/Pupil Unit in Pay 17 to $380.00/Pupil Unit in Pay 18. This increased the property tax levy by approximately $610 thousand. 4) Net effect of adjustments from the Pay17 to the Pay18 levy resulted in an increase of property taxes of roughly $870 thousand. State Aids increase is the effect of 3 main factors: 1) Increase of general education per pupil formula allowance by $124 (2.0%) from $6,188 in fiscal year 18 to $6,312 in fiscal year 19. This increase generated an additional $1.5 million in state aids. 2) Increase of approximately 240 pupil units from fiscal year 18 to fiscal year 19. The additional pupil units generated an additional $1.5 million in state aids. 3) Increase in special education fund of approximately $500 thousand. Total General Fund expenditure is projected to increase by $4.1 million, or 3.2% from the Final FY18 budget. The majority of the increase is in the salary and benefits categories related to the increase in negotiated and anticipated contract settlements and an increase in health insurance costs. 8

17 General Fund (continued) Operating Fund Fund Balance Below is a summary of the general fund balances: Actual Actual Actual Final Budget Prelim Budget Non Spendable 185, , , ,000 Assigned 1,960,472 6,630,391 4,816, ,440 3,623,507 Restricted 1,394,439 1,277,021 1,379,802 1,500,000 1,200,000 Unassigned 12,689,994 9,642,853 13,399,564 13,719,074 10,845,567 Total Fund Balance 16,230,243 17,856,679 20,254,871 16,599,514 15,669,074 Total expenditures 108,597, ,099, ,496, ,900, ,175,278 Fund balance as a percent of expendit 11.69% 8.31% 10.59% 10.32% 7.91% The proposed budget has a shortfall of revenues under expenditures of approximately $1.0 million. This shortfall will be mitigated by the use of the assigned fund balance. The June 30, 2019 unassigned fund balance after covering the shortfall will be at approximately 7.9% of the General Fund expenditures which is within the range of the District's fund balance policy (5%) and consistent with the 5 year plan presented to the Board of Education. Fund Balance as a Percent of Expenditures History 160,000, % Expenditures 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000, ,597, % 116,099, % 126,496, ,900, % 10.32% 137,175, % 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% Fund Balance Percentage 20,000, % % Total expenditures Fund balance as a percent of expenditures 9

18 Food Service Fund Special Revenue Fund Fund Overview The Food Service Special Revenue Fund is used to account for the district s food and nutrition program, which provides high quality, nutritious breakfasts and lunches for students. The Food Service Special Revenue Fund is self sustaining. All costs of the food and nutrition programs are covered by receipts from sales to students and adults, and reimbursements from federal and state governments. Below is a summary of the food service special revenue fund activity with revenues reported by the source and expenditures reported by object Actual Actual Actual Final Budget Prelim Budget Revenues Other 3,849,777 3,752,104 3,817,066 3,845,598 3,866,707 Federal sources 1,248,091 1,279,634 1,432,498 1,332,558 1,343,165 State sources 175, , , , ,100 Total revenue 5,273,115 5,252,977 5,474,395 5,412,590 5,440,972 Expenditures Salaries and wages 1,831,761 1,948,572 1,791,863 1,938,443 1,904,372 Employee benefits 454, , , , ,188 Purchased services 345, , , , ,200 Supplies and materials 2,330,757 2,364,712 2,327,080 2,310,226 2,338,127 Capital expenditures 19, , , , ,000 Other expenditures 10 7,703 8,850 7,500 5,000 Total expenditures 4,982,107 5,452,999 5,236,443 5,419,785 5,435,887 Net change in fund balances 291,009 (200,022) 237,952 (7,195) 5,085 Fund balances Beginning of year 1,447,242 1,738,251 1,538,229 1,776,181 1,768,986 End of year 1,738,251 1,538,229 1,776,181 1,768,986 1,774,071 Revenue projections are expected to be in line with the projected fiscal year 2018, adjusted for enrollment changes and other trends. Expenditures are to increase slightly over fiscal year 2018, primarily due to two factors: 1) Increase in benefit costs specifically health insurance and 2) Increase in Supplies and materials, which is primarily the purchase of food and milk due to inflationary increases. The total fund balance is not projected to create an excess funds as defined by federal guidelines. 10

19 Community Service Fund Special Revenue Fund Fund Overview The Community Service Special Revenue Fund is used to account for services provided to residents in the areas of recreation, civic activities, nonpublic pupils, adult, and early childhood programs, or other similar services. The Community Service Special Revenue Fund is required to be self sustaining, in which all fees, sales and other reimbursements are expected to cover the operating costs associated with this fund. Below is a summary of the Community Service Special Revenue Fund activity, with revenues reported by the source and expenditures reported by object Actual Actual Actual Final Budget Prelim Budget Revenues Other 4,052,807 4,460,284 4,507,132 4,766,000 4,849,067 State sources 651, , , , ,120 Property taxes 951, , ,978 1,122,700 1,171,461 Federal sources 11,737 6,995 12,648 5,900 6,991 Total revenue 5,667,605 6,121,924 6,335,058 6,601,800 6,802,639 Expenditures Salaries and wages 3,402,289 3,515,179 3,502,715 3,868,550 4,073,383 Employee benefits 1,328,232 1,402,162 1,371,184 1,471,540 1,594,051 Purchased services 865, , , , ,294 Supplies and materials 229, , , , ,744 Capital expenditures 85,577 37,751 28, , ,450 Other expenditures (32,464) 61,132 77,334 Total expenditures 5,878,786 5,947,983 5,958,823 6,836,740 7,147,922 Net change in fund balances (211,181) 173, ,235 (234,940) (345,283) Fund balances Beginning of year 850, , ,691 1,189, ,986 End of year 639, ,691 1,189, , ,703 Total revenue is projected to increase by $200,839. Fees and tuition account for $182,167 of the increase and includes growth in enrollment. It also includes a prior year positive adjustment in the School Age Care Special Needs Levy. Total expenditures are projected to increase by $311,182. Salaries and wages account for $177,832 of the increase and include additional staff for expanded programming. Additional expenditures are planned within the purchased services, supplies and materials, as well as capital expenditures budgets of General Community Education for security upgrades, technology replacement, furniture replacement, and potential expansion of the playground at Crystal Lake Education Center (CLEC). The fund balance is projected to be at $609,703 (or $486,804 excluding the reserve for severance) at the end of This amount, excluding reserve for severance, represents 6.8% of total expenditures. The Community Service Fund balance is restricted for categorical programs. 11

20 Building Construction Fund Capital Projects Fund Fund Overview Up through school year, the Capital Projects Building Construction Fund is used to account for financial resources used for the acquisition or construction of major capital facilities authorized by bond issue and state approved alternative facility projects supported by property tax levy. Effective July 1, 2016, alternative facility projects will be supported by the newly created Long Term Facilities Maintenance (LTFM) Program. The revenues and expenditures for LTFM projects must be reported in the general fund if they are supported by local property taxes. LTFM projects revenues and expenditures must be reported in the capital projects building construction fund if they are funded by bond proceeds Actual Actual Actual Final Budget Prelim Budget Revenues Other 5,492 11,385 34,426 50,000 40,000 Expenditures Salaries and wages 91,086 77,321 Employee benefits 35,077 29,869 Purchased services 377, , ,385 90, ,000 Capital expenditures 2,042,285 3,149,232 3,259,929 4,480,000 3,584,000 Total expenditures 2,545,856 3,713,928 3,593,314 4,570,000 4,480,000 Revenue over expenditures (2,540,364) (3,702,543) (3,558,888) (4,520,000) (4,440,000) Other financing sources (uses) Debt issuances 6,264,746 10,500,000 Net change in fund balances (2,540,364) 2,562,203 (3,558,888) 5,980,000 (4,440,000) Fund balances Beginning of year 7,108,644 4,568,280 7,130,483 3,571,595 9,551,595 End of year 4,568,280 7,130,483 3,571,595 9,551,595 5,111,595 The Building Construction Fund is used to record all operations of a district's building construction program that are funded by the sale of bonds, capital loans, or the Alternative Bonding Program (including levies). In fiscal year the District issued $6.2 million of General Obligation bonds to partially fund its deferred maintenance projects in FY17 and FY18. Consistent with prior practice, the district issued General Obligation bonds in FY18 in the amount of $10.5 million to partially fund deferred maintenance projects in FY19 and FY20 school years. A detailed list of planned projects is presented in the appendices of this publication. 12

21 Regular Debt Service Fund Debt Service Fund Fund Overview Funding for debt service is controlled in accordance with each outstanding debt issue s financing schedule. The resources of the Debt Service Funds are dedicated to the payment of outstanding debt obligations of the district Actual Actual Actual Final Budget Prelim Budget Revenues State Sources 12,399 20, , , ,777 Property Taxes 15,441,450 16,317,270 16,519,169 16,034,241 16,187,964 Federal sources 409, , , , ,000 Other 44, , ,434 90,000 60,000 Total revenue 15,908,011 16,886,510 17,364,146 16,807,748 17,006,741 Expenditures Principal 9,155,000 12,990,000 10,710,000 11,140,000 11,935,000 Interest 6,896,033 6,581,483 6,666,769 5,614,775 5,463,125 Fiscal charges and other 7, ,556 4, ,000 5,000 Total expenditures 16,058,283 19,842,039 17,380,819 16,854,775 17,403,125 Revenue over expenditures (150,272) (2,955,529) (16,674) (47,027) (396,384) Other financing sources (uses) Debt issuances 65,080,931 Debt refunding payments (61,855,000) Total other financing sources (uses) 65,080,931 (61,855,000) Net change in fund balances (150,272) 62,125,402 (61,871,674) (47,027) (396,384) Fund balances Beginning of year 3,281,276 3,131,005 65,256,406 3,384,733 3,337,706 End of year 3,131,005 65,256,406 3,384,733 3,337,706 2,941,322 The Debt Service Fund is used to record revenues and expenditures for a school district's outstanding bonded indebtedness. In fiscal year the district issued two refunding bonds: 2008A and 2006D. The new bond issues will be used to refinance a prior bond issue at lower interest rates resulting in reduction in property taxes of $7.7 million over the maturity of the bonds. Additionally, the District also issued General Obligation bonds in the amount of $6.2 million in fiscal year 16 to fund its deferred maintenance projects for fiscal years 2017 and 2018, and $10.5 million in fiscal year 2018 to fund its deferred maintenance projects for fiscal years 2019 and The District's total General Obligation bonds as of June 30, 2018 is $119,515,000. Issue Interest Issue Principal Due in Due in Issue Date Rate (%) Amount Maturities Outstanding One Year One Year (Int) 2010A Alternative Facilities 06/16/ ,800, ,800, , B Alternative Facilities 05/17/ ,720, ,720, , D Refunding 11/06/ ,885, ,055,000 8,315,000 1,802, A Alternative Facilities 06/25/ ,065, ,065, , A Alternative Facilities 11/24/ ,910, ,905, ,000 38, A Refunding 05/05/ ,305, ,905,000 3,125,000 2,245, B Facilities Maintenance 05/05/ ,660, ,660, , A Facilities Maintenance 02/01/ ,405, ,405, , ,515,000 11,935,000 5,463,125 13

22 Internal Service Fund Proprietary Funds Fund Overview Internal Service Funds account for the financing of goods or services provided by one department to other departments, agencies of the government, or to other governments, on a cost reimbursement basis. The District maintains one Internal Service Fund to report activities related to a self insured dental plan Actual Actual Actual Final Budget Prelim Budget Revenues Self Insured Dental Plan 1,160,243 1,190,993 1,247,833 1,300,000 1,320,000 Total revenue 1,160,243 1,190,993 1,247,833 1,300,000 1,320,000 Expenditures Employee Benefits Self Insured Dental Plan 1,182,284 1,176,471 1,266,234 1,280,000 1,300,000 Total expenditures 1,182,284 1,176,471 1,266,234 1,280,000 1,300,000 Net change in fund balances (22,041) 14,521 (18,401) 20,000 20,000 Fund balances Beginning of year 551, , , , ,051 End of year 529, , , , ,051 Activity in the Internal Service Fund is expected to remain stable and consistent with prior years and is projected to increase by approximately $20,

23 Agency and Trust Funds Fiduciary Fund Fund Overview Trust funds are used to account for assets held in trust by the District for the benefit of individuals or other entities. The District maintains two trust funds: 1) an employee benefit trust fund used to report resources received and held by the District as the trustee for employees participating in the District s flexible benefit plan, and 2) a scholarship trust fund Actual Actual Actual Final Budget Prelim Budget Revenues Employee Health Care Expense Account 512, , , , ,000 Scholarships , ,381 1,000 10,000 South of the River Learning Academy 90,952 81,953 68,743 85,000 80,000 Total revenue 604, , , , ,000 Expenditures Employee Health Care Expense Account 501, , , , ,000 Scholarships 1, , ,209 1,000 1,000 South of the River Learning Academy 78,353 62,635 74,824 79,750 79,750 Total expenditures 581, , , , ,750 Net change in fund balances 23,017 38, ,250 19,250 Fund balances Beginning of year 274, , , , ,960 End of year 297, , , , ,210 This fund is self sufficient and has three functions to account for: 1) Reimbursement of healthcare and dependent care expenses to employees. 2) SORLA (South of the River Learning Academy) a week long professional development workshop for districts in the south Metro area. 3) Donations presented to the District in the form of scholarships. 15

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25 Appendix

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27 General Fund Revenues by Source: UFARS Code UFARS Code Description Final Budget Prelim Budget Difference Property taxes R001 Property Tax Levy 26,166,870 29,293,907 3,127,037 R010 County Apportionment 175, ,933 Total Property taxes 26,342,803 29,469,840 3,127,037 Other R021 Tuition and Reimbursements from Minnesota School Districts 35,000 60,000 25,000 R040 Tuition from Patrons 15,000 10,000 (5,000) R050 Fees from Patrons 1,345,000 1,170,000 (175,000) R060 Admission and Student Activity Revenue 215, ,000 (55,000) R071 Medical Assistance Revenue from MN Department of Human Services 250, ,000 R092 Interest Earnings 5,000 70,000 65,000 R093 Rent 190, ,000 (30,000) R096 Gifts and Bequests 30,000 30,000 R099 Miscellaneous Revenue from Local Sources 485, , ,000 Total Other 2,540,000 2,890, ,000 State sources R201 Endowment Fund Apportionment 377, ,878 42,585 R211 General Education Aid 79,039,685 82,154,613 3,114,928 R212 Literacy Incentive Aid 621, ,631 (8,728) R213 Shared Time Aid 13,442 10,314 (3,128) R227 Abatement Aid 10,817 20,886 10,069 R300 State Aids Received from Minnesota Department of Education 3,110,176 2,803,467 (306,709) R317 Long Term Facilities Maintenance (LTFM) State Aid 403, , ,085 R360 State Aid for Special Education 14,009,697 14,552, ,390 R370 Other Revenue from Minnesota Department of Education 120 (120) Total State sources 97,585, ,126,998 3,541,372 Federal sources R400 Federal Aids Received through Minnesota Department of Education 2,776,536 2,758,000 (18,536) Total Federal sources 2,776,536 2,758,000 (18,536) Grand Total 129,244, ,244,838 6,999,873 16

28 General Fund Spending by Site: Projected Spending Number School Name Enrollment Capacity Final Budget Prelim Budget Difference per Student Elementary Schools 596 Cherry View ,356,975 5,513, ,715 9, Eastview ,773,447 6,092, ,336 8, Christina Huddleston ,071,905 5,112,962 41,057 10, John F. Kennedy ,551,958 5,718, ,264 9, La ke Ma rion ,345,943 5,683, ,858 8, La kevi ew ,558,532 5,460,156 (98,376) 8, Oak Hills ,871,696 5,523, ,854 8, Orcha rd La ke ,866,548 3,767,751 (98,797) 8,544 Total Elementary Schools 4,689 5,074 41,397,004 42,872,915 1,475,911 9,143 Middle Schools 105 Century ,957,267 7,620, ,377 7, Kenwood Tra i l ,837,728 7,304, ,292 9, McGui re 961 1,024 7,521,125 7,994, ,345 8,319 Total Middle Schools 2,709 2,842 21,316,120 22,919,134 1,603,014 8,460 High Schools 028 Lakeville North High School 1,725 2,176 14,665,475 14,887, ,676 8, Lakeville South High School 1,768 1,958 15,137,919 15,725, ,421 8, Area Learning Center ,152,556 1,106,783 (45,773) 11,529 Total High Schools 3,589 4,224 30,955,950 31,719, ,324 8,838 Online Schools 090 Li nk12 65 n/a 597, ,295 (119,239) 4,982 Total High Schools , ,295 (119,239) 4,982 Total All Schools 11,052 12,140 94,266,608 97,989,618 3,723,010 8,866 17

29 Lakeville Area Public Schools Preliminary Budget Budget Timeline: 18

30 Capital Funding Summary of Sources and Uses: Operating Capital Available Funds State Aid Operating Capital Aid Property Taxes Levy Operating Capital Levy FY2017 Operating Capital Adjustment FY2015 Operating Capital Adjustment Building Lease Levy Building Lease Adjustment Total Property Taxes Levy Total Available Funds Summary of Expenditures Building Leases 911,923 1,827,160 Curriculum Materials 250,000 TIES Annual Fees 650,000 DSCIT Staffing 658, ,056 Capital and Operating Leases 645,000 (20,022) Total Expenditures 3,115,201 4,164 Reserves and contingency 30, ,527 (293,091) 1,318,634 3,145,794 3,145,794 Long Term Facilities Maintenance (LTFM) Available Funds State Aid LTFM Aid Property Taxes Levy LTFM Levy Equal LTFM Equal Adjustment LTFM Unequal Adjustment Health and Safety Adjustment Total Property Taxes Levy G.O. Facilities Maintenance Bonds Summary of Expenditures Other Hazardous Materials 55, ,122 Fire Safety 340,000 Accessibility 40,000 Building Envelope 175,000 1,867,803 Building Hardware and Equipment 1,195,000 4,495 Electrical 1,020,000 35,784 Interior Surfaces 1,065,000 (223,407) Plumbing 450,000 1,684,675 Professional Services and Salary 200,000 Roof Systems 725,000 4,942,203 Site Projects 1,915,000 Total Available Funds 7,180,000 Total Expenditures 7,180,000 Capital Project Levy Available Funds State Aid Capital Projects Aid Property Taxes Levy Capital Projects Levy Total Available Funds Summary of Expenditures Digital Tools for Learning 1,710,082 STEM Resources 399,019 Security Emergency Management 114,006 2,223,107 2,223,107 Total Expenditures 2,223,107 19

31 Capital Funding Details: Operating Capital Item/Description Category Amount Community Education Juniper Path Building Building Leases 125, Hasse Arena (Ice Sheet/Hockey Arena) Building Leases 330, ISD 719 Minnesota School Of Business (MNCAPS) Building Leases 89, ISD 917 Alliance Education Center Building Leases 88, ISD 917 Cedar School Building Leases 40, ISD 917 Lebanon Education Center Building Leases 70, Lakeville South High School Athletic Turf Lease Payment Building Leases 144, Ties (Administrative Offices) Building Leases 22, District Multifunction Printer/Copier Leases Capital and Operating Leases 190, Generators Lease Payment Capital and Operating Leases 235, Ice Time Boys And Girls Hockey Capital and Operating Leases 220, Reserves And Contingency For Unplanned Expenses Contingency 30, Curriculum Materials Elementary and Secondary Curriculum Materials 125, Curriculum Materials Secondary Curriculum Materials 125, DSCIT Staffing (Salary and Benefits) DSCIT Staffing 658, TIES Annual Fees TIES Annual Fees 650, Total 3,145,

32 Capital Funding Details (continued): Long Term Facilities Maintenance (LTFM) Project Location Category Amount Main Entry ALC Accessibility 40, Exterior Doors CHE Building Envelope 175, Bleachers, Door and Hardware, Clock System, Elevator KTMS Building Hardware, Equipment 775, Partial Door and Hardware, Clock System CVE Building Hardware, Equipment 135, Partial Door and Hardware, Clock System LVE Building Hardware, Equipment 135, Technology Cabling JFK Building Hardware, Equipment 150, Electrical Feeder and Panel, Interior Lighting JFK Electrical 550, Game Gym and Commons LNHS Electrical 200, Gym Lighting CVE Electrical 60, Gym Lighting LVE Electrical 60, Pool Lighting KTMS Electrical 150, Fire Alarm System LME Fire Safety 75, Fire Suppression System JFK Fire Safety 265, Ceilings JFK Interior Surfaces 275, Flooring LSHS Interior Surfaces 525, Flooring DO Interior Surfaces 85, Interior Painting DO Interior Surfaces 30, Restroom Partitions CVE Interior Surfaces 75, Restroom Partitions LVE Interior Surfaces 75, Fuel Oil Tank Removal OLE Other Hazardous Materials 55, Plumbing Fixtures CVE Plumbing 225, Plumbing Fixtures LVE Plumbing 225, Professional Services and Salary FPP Professional Services 200, Game Gym LNHS Roof Systems 500, Roof KTMS Roof Systems 225, Paving and Parking Lot Lighting CVE Site Projects 800, Paving and Parking Lot Lighting OLE Site Projects 450, Paving and Resurfacing LVE Site Projects 200, Playground CHE Site Projects 150, Playground CVE Site Projects 150, Structural Stoop ALC Site Projects 40, Track Sealcoat LSHS Site Projects 125, Total 7,180,

33 Finance Profile and Benchmarks: Below is a table which details the Average Daily Membership (ADM) served, as well as the per ADM Revenue and Expenses of several Minnesota School Districts. The district chosen are comparable to our District in size, economic make up or a neighboring District. Please note all data is as of the fiscal year ended June 30, ADM Revenues Expenses ISD No. District Name Served State Rank Per ADM Rank Per ADM Rank 625 St. Paul 36, , , Minneapolis 35, , , Burnsville 9, , , Robbinsdale 12, , , Bloomington 10, , , Eden Prairie 8, , , Mounds View 11, , , Osseo 20, , , Hopkins 6, , , North St. Paul 10, , , White Bear Lake Schools 8, , , Anoka Hennepin 38, , , Edina 8, , , South Washington County 18, , , Rosemount, Apple Valley, Eagan 27, , , Wayzata 11, , , Stillwater Area 8, , , Shakopee 8, , , Eastern Carver County 9, , , Lakeville 10, , , Minnetonka 10, , , Prior Lake Savage Area 8, , , Farmington 7, , , n/a Statewide Average 12,116 12,457 22

34 Finance Profile and Benchmarks (continued): 23

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