Agree to Fiscal Year 2015 budget planning process; and provide direction on budget planning. Agenda

Transcription

1 SCHOOL BOARD WORK SESSION DECEMBER 10, :30 PM EDUCATIONAL SERVICE CENTER - FORUM ROOM, RD AVENUE NORTH, MAPLE GROVE FACILITATOR: TIM WILSON Purpose: Outcomes: The purpose of School Board Work Sessions is to build trust and teamwork and to exchange information in order to facilitate efficient and effective decision-making at Regular Board meetings. Agree to Fiscal Year 2015 budget planning process; and provide direction on budget planning. 1. 6:30 PM A. Check-In 2. 6:40 PM Agenda A. Long-range financial planning model and framework; Kim Riesgraf; Kelly Benusa B. Fiscal year 2015 financial situational analysis 4 1. Review past budget planning processes and past board budget actions 5 2. Review fiscal year 2014 budget detail 6 3. November state budget forecast Benchmark districts District historical budget trends District cost drivers District 5-year enrollment projections 116 C. Fiscal year 2015 budget planning; Kim Riesgraf; Kelly Benusa 1. Fiscal year 2015 budget planning timeline Financial forecasting model Budget goals and target recommendations D. Next steps - Communication; Kate Maguire E. Board discussion and direction; Board Members 3 Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams, contribute to community, and engage in a lifetime of learning.

2 3. 8:10 PM A. Planning for January 7, 2014 Organizational Meeting; Kate & Board Members 4. 8:25 PM A. Check Out and Adjourn 120 Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams, contribute to community, and engage in a lifetime of learning.

3 ISD Osseo Area Schools Long-Range Financial Model (LRFM) and Annual Budget Framework The district mission is placed in the center to reflect that it is at the core of the model. The ovals ring reflects the operationalizations of the strategic priorities in the annual budget cycle facilitated by our systems budget managers. The outer boxes ring reflects long-range financial planning directed by the school board. In the model, the long-range financial forecast is used as a tool to identify annual operating budget targets that result in a financially sustainable plan. These budget targets are considered when strategic priorities are operationalized in department work plan and the annual budget recommendation. School board establishes strategic plan priorities -Annually Long-Range Financial Planning Guiding Principles Mission/Strategic Plan - Our model and framework will align with our system's Mission and Strategic Plan. Legal - Our work will comply with legal requirements and School Board policies. Process - We will use a data-driven, collaborative decision-making process. Resources - Our model and framework will guide the distribution of resources in priority order, based on data, research and strategic priorities. Communication - Our work will be communicated to our school community. 1. Review strategic plan annual priorities and link to department(s) work and consider LRFM guiding principles. 2. Review & revise dept. continuous improvement plan goals & identify goal measurements Long -range financial forecast Review & update financial policies Complete multi-year financial forecasts - Ehler's Model Analyze financial condition (general operating/transportation, capital, fund balance) Financial recommendations 3 Board approves annual budget(s) adjustments and adopt budget for upcoming fiscal year 6. Monitor and Report Budget Results Accept mid-year budget and yearend audit results 5. Gather feedback on budget planning process Adjust process based on performance evaluation results OUR MISSION is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning 4. Develop annual budget recommendations based on board budget target 3. Review & revise department organization chart, as needed, to support dept. continuous improvement plan goals - consider budget adjustments & goals Board identifies annual budget targets Review current, basic/minimum level, & adjusted budget levels (budget scenarios) Use financial forecasts to assess fiscal sustainability Determine annual budget target for budget development Board identifies annual capital improvements Review general 10-year facilities plan Recommend annual detailed plan Determine annual budget target for budget development Prepared for School Board Work Session 12/10/2013

4 PROGRAM EFFICIENCY, ABANDONMENT, AND REDIRECTION (PEAR) NARRATIVE PEAR Proposal: PEAR Reference Number: Director/Budget Manager: (brief statement of proposed adjustment) Fiscal Year: Division/Department: 1. What budgeted resources would be adjusted (FTE and budget amount)? (copy information to the appropriate yellow columns on the LRFP PEAR worksheet). 2. Will current services be eliminated, reassigned or to what extent are other resources available to maintain current services (grants or other funds)? Are there any productivity improvements that will offset the reduction? 3. Impact of Proposal a. What is the expected impact of this proposal on current services and/or the strategic plan? (Copy information to the Impact of Proposal column on the LRFP PEAR worksheet). b. What other divisions or departments will be affected by your proposal? c. Have you consulted with them to determine their concerns and given them consideration? d. Briefly describe the feedback received from other departmental leaders and impacted stakeholders. 4. Are any legal requirements, mandates, or School Board policies affected by this reduction? Yes or No If yes, please list. Revised 11/1/13 4

5 Fiscal Years 2010 to 2015 School Board Approved Budget Adjustments Impacting Programs and Services Revenue Adjustment Decisions Increase (Decrease) Actual FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Budgeted FY 2014 Projected FY 2015 $ 9,084,554 Increase in voter approved operating referendum $ 274,556 $ 532,208 $ 629,616 $ 578,742 $ 664,650 Increase in voter approved inflation on operating referendum $ 1,230,962 Operating Capital Transfer $ (13,416,023) $ 13,416,023 Revenue Subtotal $ (11,910,505) $ 13,948,231 $ 629,616 $ 578,742 $ 664,650 $ 9,084,554 Recognition of one-time general education fiscal stabilization component of Federal stimulus Act (ARRA) Expenditure Adjustment Decisions Increase (Decrease) Actual FY 2010 Actual FY 2011 Actual FY 2012 Actual FY 2013 Budgeted FY 2014 Projected FY 2015 $ (1,652,133) $ (824,234) $ (681,891) $ (706,304) $ (700,803) $ (722,655) OPEB Contributions from Trust Accounts to General Operating Fund One-time general education fiscal stabilization component of Federal stimulus Act (ARRA) used to pay for existing staff, in order $ (13,416,023) $ 13,416,023 to preserve fund balance $ (608,696) Alignment enrollment with staffing 5 $ 1,652,952 $ 61,986 $ 64,310 $ 57,826 $ 59,705 $ (1,405,606) Board approved additions up to $2 million (12 classroom FTE, 4.5 all day kindergarten FTE, 2 assistant principals) Transfer technology salaries and benefits to Capital - one year only, in order to preserve fund balance $ 1,000,000 $ 37,500 $ 33,719 $ 34,815 Board approved additions of $1 million (11.8 classroom FTE, 1.2 FTEall day kindergarten, 2 FTE behavior intervention teachers) $ (4,362,576) $ 4,362,576 One-Time Education Jobs and Medical Assistance used to pay for existing staff, in order to preserve fund balance $ (3,032,463) Board approved $3,032,463 reductions ($1,000,000 for programs and $2,032,463 for aligning enrollment with staffing) $ (3,074,509) Board approved $3,074,509 reductions ($2,135,157 non-instructional and $939,382 instructional programs and services) Expenditure Subtotal $ (15,676,852) $ 9,882,165 $ 3,337,065 $ (3,636,957) $ (3,683,768) $ (628,136) Net Gain (Loss) $ 3,766,347 $ 4,066,066 $ (2,707,449) $ 4,215,699 $ 4,348,418 $ 9,712,690 School Board Work Session 11/20/12

6 ANNUAL BUDGET FISCAL YEAR 2014 MISSION Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. Kate Maguire, Superintendent Kim Riesgraf, Assistant Superintendent, Administration Kelly Benusa, Director of Business Services 6

7 FISCAL YEAR 2014 BUDGET Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 7

8 Osseo Area Schools Independent School District 279 Annual Budget Fiscal Year 2014 TABLE OF CONTENTS I. INTRODUCTORY SECTION Executive Summary Long-Range Financial Planning (LRFP) Model Program Efficiency, Abandonment, and Redirection (PEAR) Narrative II. ORGANIZATIONAL SECTION School Board and Administration School District Profile Schools and Addresses School District Map Mission and Strategic Plan Organizational Chart Budget Summary by Division III. FINANCIAL SECTION Budget Calendar Budget Planning Timelines Financial Policy and Administration Revenue, Expenditure, and Fund Balance Projections for All Funds General/Transportation Fund Revenue, Expenditure, and Fund Balance Projections Fund Revenue Summary Expenditure Summary by Object Expenditure Summary by Program 3-Year Comparison Expenditures by Program Expenditures Instructional Versus Non-Instructional Food Service Fund Revenue, Expenditure, and Fund Balance Projections Expenditure Summary by Object Community Service Fund Revenue, Expenditure, and Fund Balance Projections Expenditure Summary by Object 8

9 Capital Expenditure Fund Revenue, Expenditure and Fund Balance Projections Expenditure Summary by Object FY 2014 Capital Budget FY 2014 Facilities Improvements Landsales FY 2014 Alternative Facilities FY 2014 Alternative Facilities 10-Year Plan Debt Service Fund Revenue, Expenditure and Fund Balance Projections IV. INFORMATIONAL SECTION Budget Memo to School Board FY 2015 Budget Planning Base and Recommended Tactics June 18, 2013 Enrollment Projections Resource Allocations Staff ESP Hours Staff Development Supplies/Expenses V. BENCH MARK COMPARISONS Per Pupil Comparison with Bench Mark Districts Percent of Effective Expenditure for Instruction PK-12 Operating Expenditure District & School Administrative Expenditure Transportation Expenditure Capital Expenditure Food Service Community Service Expenditure Debt Service 9

10 INTRODUCTORY SECTION ISD Osseo Area Schools is located in the northwest section of Hennepin County. The area served by our school district has a population of 136,896 residents representing a variety of ethnic, religious and economic backgrounds. This diverse community is one in which parents, students, and staff are committed to student learning through a collaborative culture with a focus on results. Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 10

11 DATE: June 18, 2013 TO: FROM: Members of the ISD 279 Osseo Area Schools Community Kim Riesgraf, Assistant Superintendent Administration Kelly Benusa, Director Business Services We are pleased to present this Fiscal Year (FY) 2014 budget for ISD Osseo Area Schools. This memo describes the Fiscal Year 2014 budget year, which begins July 1, 2013 and ends June 30, The annual budget is an important part of overall school district planning. The budget planning for this Fiscal Year intentionally aligns resources with our district s strategic plan to move forward our mission, which is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. The entire budget has been compiled into this single document using a pyramid approach so that readers may progress from an overview to greater levels of detail. This budget format communicates budget detail and serves as a reference document. The budget document is organized into six major sections: Introductory Section, Organizational Section, Financial Section, Informational Section, and Benchmark Comparisons. Each section presents information for the general/transportation, food service, community services, capital, and debt service funds. It also includes the State-approved ten-year plan for the alternative facilities levy program. To make the budget more understandable, charts and graphs are utilized wherever appropriate. Budget Management As required by the State of MN Uniform Financial Accounting Reporting System (UFARS), the school district s budget is divided into separate funds for the purpose of control and separation of various expenditure areas. Each of the different funds constitutes a complete accounting entity. More specific information regarding the different funds may be found in the Financial Section under the heading of Financial Policy and Administration. General/Transportation Fund The largest of all the funds, the General/Transportation Fund pays for most of the operating expenses of the school district. Included in this fund are such things as salaries and fringe benefits, instructional and maintenance supplies, utilities, insurance, professional development, contracted transportation services, etc. Allocations are made to the buildings for building principals and/or site supervisors to administer. Specific information regarding allocations may be found in the Informational Section. 1 11

12 Food Service Fund This fund is intended to be a self-supporting fund (i.e. the food service fund receives no levy support). Revenues are derived from breakfast and lunch fees, and federal and state aid. However, if expenditures exceed revenues and a deficit occurs, the general/transportation fund would be required to subsidize this fund in order to make up the deficit. Included in the food service fund is the cost of salaries, benefits, food and serving supplies, and the equipment necessary to provide breakfast and lunch programs for students. Community Service Fund The community service fund is used for programming that serves residents in the areas of recreation, civic activities, nonpublic students, adult or early childhood programs, K-6 extended day programs, or other similar services. Examples of community service programs include Early Childhood Family Education, Kidstop, Adult Basic Education, and Community Education. For the most part, funding for the community service program is categorical in nature (i.e. funds received for specific programs). Capital Expenditure Fund The capital expenditure fund has been folded into the general fund as a separate expenditure category. However, for simplicity and clarity, we still track capital expenditure revenue and expenditures as a separate fund. Included in this fund are expenditures for technology, health and safety projects, major repair, remodeling and leasing of facilities, improvements to sites, and equipment. Operating capital is determined by a formula based on the age of the school buildings in the district, and health/safety by allowable expenses in defined categories. Debt Service Fund The debt service fund is used to account for the accumulation of resources for, and payment of, general obligation bonds, interest, and related costs. BUDGET PROCESS In Fiscal Year 2013, the district implemented a long-range financial planning process for developing the annual budget. This process was developed in Fiscal Year 2012 and implemented in Fiscal Year 2013 for the FY 2014 budget process. The budget planning steps began in November 2012, using the Long-Range Financial Model (LRFM) and Annual Budget Framework and the FY 2014 Budget Planning Timeline. The following key budget considerations were used during the FY 2014 budget reduction process: Outcomes for budget reduction process Create budget reduction recommendations that align with our system s Mission and Strategic Plan. Involve school and community stakeholders in determining how to provide a quality education using fewer resources. Provide budget recommendations for school board approval that achieve a school district budget that maintains required fund balance. 2 12

13 Budget reduction proposal process - 1. The system has identified legally required and mandated essential services and programs. These will not be considered for reduction. 2. The analysis of budget reductions will be based on a review of the effectiveness of specific programs or services. Information will be used to determine which program or initiatives are not getting expected results and should be considered for budget reductions. 3. The third analysis of budget reductions will consider the basic requirements for providing the educational program at sites. This analysis will establish the base quality education level that the district does not want to go below and the essential support services required to deliver the base. 4. School board policies will be considered to determine if they exceed legally required and mandated essential services and programs or the basic requirements for providing the education program. Do board policies and regulation have financial implications? If so, which policies and/or regulations might be changed? 5. All proposed reductions will be evaluated using the Program Efficiency Abandonment and Redirection (PEAR) process. The process considers the impact of the reduction, elimination, or restructuring of services on the education programs. 6. Staff and citizen idea input will be solicited and shared with budget managers for consideration in the budget planning process. 7. Stakeholder survey will be used to determine which programs are seen as essential for the community and which programs are not. In addition, the capital budget planning process included facility and capital needs assessment and presentation of a 10-year capital budget proposal. The school board reviewed the proposals at several work sessions in December 2012, January 2013 and February The public provided input on financial priorities via a survey in December Public feedback on the proposals was obtained in February through community forums and correspondence. The school board approved budget reductions of $3,074,509 for the general operating/transportation budget on March 5,

14 Fiscal Year 2014 Highlights As shown in the charts below (all funds included), the budget proposal is a negative budget. More specific detail for each fund is displayed in the Financial Section, and additional comparative information is contained in the Informational Section. Revenue Budget FY 2014 Budget FY 2013 Budget Increase (Decrease) % Change General/Transportation * $ 201,320,803 $ 198,492,881 $ 2,827, % Capital/Land Proceeds 10,908,216 11,285,055 (376,839) -3.34% Total General Fund 212,229, ,777,936 2,451, % Food Service 10,715,605 10,743,402 (27,797) -0.26% Community Service 11,994,657 11,954,344 40, % Debt/OPEB Service 20,714,880 20,796,047 (81,167) -0.39% Total All Funds $ 255,654,161 $ 253,271,729 $ 2,382, % Expenditure Budget FY 2014 Budget FY 2013 Budget Increase (Decrease) % Change General/Transportation * $ 203,140,893 $ 206,056,816 $ (2,915,923) -1.42% Capital/Land Proceeds 10,095,046 9,814, , % Total General Fund 213,235, ,871,186 (2,635,247) -1.22% Food Service 11,383,147 11,173, , % Community Service 12,811,988 12,529, , % Debt/OPEB Service 20,713,865 20,541, , % Total All Funds $ 258,144,939 $ 260,115,457 $ (1,970,518) -0.76% Revenue/Expenditure Comparison FY 2014 Revenue FY 2014 Expenditure Increase (Decrease) % Change General/Transportation * $ 201,320,803 $ 203,140,893 $ (1,820,090) -0.90% Capital/Land Proceeds 10,908,216 10,095, , % Total General Fund 212,229, ,235,939 (1,006,920) -0.47% Food Service 10,715,605 11,383,147 (667,542) -5.86% Community Service 11,994,657 12,811,988 (817,331) -6.38% Debt/OPEB Service 20,714,880 20,713,865 1, % Total All Funds $ 255,654,161 $ 258,144,939 $ (2,490,778) -0.96% * Excludes federal and state special funded projects 4 14

15 General/Transportation Fund The combined revenue and expenditure change for the General/Transportation Fund is a net decrease of $1.8 million. This represents a planned spend down of fund balance for FY General fund revenue is projected to increase 1.42% or $2.8 million for Fiscal Year The majority of the increases are the result of adjustments to several revenue categories. General education aid is anticipated to increase by 1.5% or $1.9 million for FY Other Post-Employment Benefits (OPEB) pay as you go levy is attributing $600,000 of new revenue. Tax abatements are increasing almost $503,000. The operating referendum allowance for FY 2014 is increasing nearly $198,000, as a result of the voter approved inflation factor being applied to the existing referendum authority. Third party billing revenue is anticipated to increase by $236,000 due to program growth. These increases are being partially offset by special education revenue decreasing $710,000, due mainly to prior year adjustments for FY 2012 that affect FY 2013 revenues. General fund expenditure budget is projected to decrease 1.42% or $2.9 million for Fiscal Year The decrease in the expenditure budget reflects the $3,074,509 reduction in programs and services in order to align staffing with projected enrollment decline and preserve fund balance. Changes in expenditures are the result of adjustments in several expenditure categories. Salaries Salaries are decreasing $3.7 million from the previous year. The reduction is attributed to several factors. The Board approved $2.1 million of staffing reductions to align with enrollment and reduction in programs and services in order to preserve fund balance. The entire employee cost is allocated to salaries, but will be split between salaries and benefits at midyear when amounts are known. This causes a larger reduction in salaries for the adopted budget than what will actually be realized. The one-time stipend in the teacher contract, which was paid in FY 2013, of $1.1 million will not carry forward into the FY 2014 budget. The medical loss ratio or MLR rebate of $300,000 was only for FY 2013, so the expenditure and revenue will not be occurring in FY Attrition and allocation of staff, along with retirees for FY 2014 will save the district an estimated $2.1 million. These reductions are partially offset by $1.9 million of roll up cost for salaries. 5 15

16 Benefits Benefits are increasing $881,000 or 2.1% from the previous year. The increase is attributed to several factors. Medical insurance is increasing 6% or more than $1.6 million, due to the likely imposition of a penalty from HealthPartners. HealthPartners in allowed, by law, to impose the penalty because five school district employee groups voted to move from the district-administered plan to a non-district administered plan. Employer TRA is increasing $780,000 due to the rates increasing from 6.5% to 7% beginning July 1, Workers compensation is increasing $126,000 or 15% due to industry needs rather than a direct correlation to claims reported or paid. Increases are being partially offset by a decrease of $1,020,000 in health care savings (HSA) for the teacher retiree contract provision being sunset in FY Employer portion of long term disability and life insurance premiums is anticipated to decrease by $159,000 due to the renewal of both plans for FY The remaining decrease of $446,000 can be attributed mostly to allocation and attrition of staff to both grants and the general operating fund. Purchased services Purchased services and supplies are being increased $94,000 or 0.34%. The main increases occurred in several areas. The transportation contract approved by the Board in the spring of 2013 was $584,000 or 2.49% increase. Tuition projected increases of $500,000 to align tuition costs with trend. The two areas of increase (noted previously) are being mostly offset by areas of decreased budget capacity. The overall decrease of $990,000 is mainly attributed to the $824,000 in Board-approved budgetary reductions in areas such as tuition, transportation, staff development, and consulting for FY Supplies Supplies and other expenditures are decreasing $209,000 from the previous year. The decrease is attributed to two main areas. The federal indirect chargeback rate increased from 1.6% in FY 2013 to 4% for FY 2014 resulting in additional charges of $157,000. FY 2014 budget reductions of $160,000 are identified in this area. These decreases are slightly offset by other areas of increase; most notable is the projected 4% fuel cost increase of almost $43,000. Food Service Revenues for food service are projected to decrease 0.26% for FY Overall, the food service fund is projecting a decrease of ($667,542). 6 16

17 Community Service Overall, community service is projecting a decrease in fund balance of ($817,331). Therefore, the 0.34% increase in revenue will be applied to the 2.25% increase in expenditures. The main reason for the increase in expenditures is increased operating costs for programs and services being offered for FY Capital/Land Proceeds The decrease in revenue can be attributed to the Bather property proceeds recognized in FY This, together with the 8.06% increase in expenditures, results in an $813,170 planned surplus in the Capital/Land Proceeds Fund. Debt Service The (0.39%) revenue decrease reflects fewer required levies for debt service payments. The 0.84% increase in expenditures is due to the calculation of annual payments of principal and interest pertaining to the debt service requirements as per schedule. The net change in fund balance is projected to increase $1,015. Student Enrollment Student enrollment is basic to the funding formula used by the State to determine how much revenue the District will get for its general/transportation fund. Therefore, the projection and tracking of student enrollment is a very important part of the budget process. Enrollment (Average Daily Membership) for the Past 10 Years FY 2014 Budgeted FY 2013 Budgeted FY 2012 Actual FY 2011 Actual FY 2010 Actual FY 2009 Actual FY 2008 Actual FY 2007 Actual FY 2006 Actual FY 2005 Actual 11,283 11,341 11,264 11,325 11,199 11,039 11,380 11,539 11,378 11,308 9,273 9,258 9,327 9,447 9,765 9,971 10,390 10,544 10,565 10,463-5,000 10,000 15,000 20,000 25,000 Early Childhood - Elementary Secondary 7 17

18 The graph on the previous page shows the number of students enrolled in ISD 279 each year since Overall enrollment decreased 5.4% during this time. The average change for Osseo s benchmark public school districts (Anoka-Hennepin, Elk River, North Saint Paul, Robbinsdale, Rochester, Rosemount-Apple Valley-Eagan, South Washington, and Wayzata) in public school enrollment from FY 2005 to FY 2012 was a decrease of 2.1%. An analysis of the enrollment trends highlights the following factors: 1. The birthrate in Hennepin County appears to have leveled off. Since the district s kindergarten enrollment has historically been directly related to the Hennepin County live birthrate, one would conclude that the district s kindergarten enrollment would likewise follow this trend. 2. More school age children in our district are attending other public school districts and charter schools, while others continue to attend non-public schools. This results in a loss of students to the District and is evident in the elementary level decline over the past ten years. 3. The growth and development of new residential areas in both Brooklyn Park and Maple Grove has slowed, resulting in fewer new families in our area. Economic Condition and Outlook Osseo Area Schools intentionally focuses efforts of staff and other resources to identify available financial resources that are available in order to maximize revenue. With the exception of the voter-approved operating referendum and bond referendum, the District is dependent on the State of Minnesota for its revenue authority and state aid. Recent experience demonstrates that legislated revenue for education has not been sufficient to meet instructional program needs and increased costs due to inflation. The State continues to face substantial challenges balancing revenues and expenditures. In order to address State cash flow needs, the legislature imposed school aid payment and property tax recognition shifts, reducing cash flows for public school districts. A plan to pay back these shifts has been implemented and some of the shifts have been decreased. The Legislature, in 2013, approved an increase in the general education formula for FY 2014 and FY 2015 of 1.5 percent for each fiscal year. 8 18

19 Numerous factors affect public school finance and need to be monitored on an on-going basis, such as: State aid versus local tax payer funding for programs and services Economic factors, such as unemployment and overall revenue collections by the state Mandated programs that are not fully funded, such as special education Compliance and implementation of governmental pronouncements Impact to local tax payers for operating referendum requests Impact to local tax payers for capital projects levy requests Increased competition for students from other public schools as well as charter schools Housing development and growth Enrollment trends Health insurance cost increases Pension obligations, both local and state Management of federal grants and other special funded state programs Technology Technology is increasingly used to connect people to resources for the purposes of learning and working. The previous Technology Plans spoke directly to this mission by providing for infrastructure improvements, including a fiber-optic communications backbone, modernized communications closets, hardware standards, a tech-refresh plan and the expansion of the district website. The current Technology Integration Plan identifies specific steps designed to meet the identified goals and objectives: 1. A service catalog is available that describes the professional development opportunities that exist as well as the hardware and software services that are available. 2. Customers and I2T2 staff utilize an online help desk and knowledge base systems to manage technology support requests. 3. Parents and families regularly access online resources. 4. The school district has a roadmap to go paperless. 5. At least some students at each K-12 site regularly use their own technology devices for instructional purposes. These goals continue the concept of increasing communications capacity but, in addition, focus on the needs to better prepare teachers, students, administrators, and district support staffs to better utilize technology for instruction, communication, and management purposes. The link to the actual plan on the website is:

20 STUDENT ASSESSMENT AND TESTING The District uses student assessment data in many ways. District 279 uses the Northwest Evaluation Associate Achievement Measures of Academic Progress to measure student s movement towards meeting the state tests required for graduation. The class of 2012 had to meet three state test requirements to graduate. These tests are named the Minnesota GRAD tests. The GRAD tests help us to measure our end product, our graduates. MINNESOTA GRAD TESTS The following graph shows the percentage of students who met the GRAD test graduation requirement in each of the three tested areas. A great majority of the District s students pass the GRAD tests on their first or second try. The small percentages of students who have not met their GRAD test requirements by the end of twelfth grade are primarily students in the Special Education or the English Language Learners program. Percent of Students Who Have Met the GRAD Test Requirements Class of Percent of Students Reading Writing Math 50 GSY

21 The district mission is placed in the center to reflect that it is at the core of the model. The ovals ring reflects the operationalizations of the strategic priorities in the annual budget cycle facilitated by our systems budget managers. The outer boxes ring reflects long-range financial planning directed by the school board. In the model, the long-range financial forecast is used as a tool to identify annual operating budget targets that result in a financially sustainable plan. These budget targets are considered when strategic priorities are operationalized in department work plan and the annual budget recommendation. E. Board approves annual budget(s) adjustments and adopt budget for upcoming fiscal year Monitor and Report Budget Results Accept mid-year budget and yearend audit results ISD Osseo Area Schools Long-Range Financial Model (LRFM) and Annual Budget Framework 1. Review strategic plan annual priorities and link to department(s) work and consider LRFM guiding principles. 5. Gather feedback on budget planning process (new) Adjust process based on performance evaluation results A. School board establishes strategic plan priorities -Annually OUR MISSION is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning 2. Review & revise dept. work plan goals & identify goal measurements (new) 4. Develop annual budget recommendations based on board budget target 3. Review & revise department organization chart (new), as needed, and personnel complement (new) to support dept. work plan goals - consider budget adjustments & goals Long-Range Financial Planning Guiding Principles Mission/Strategic Plan - Our model and framework will align with our system's Mission and Strategic Plan. Legal - Our work will comply with legal requirements and School Board policies. Process - We will use a data-driven, collaborative descision-making process. Resources - Our model and framework will guide the distribution of resources in priority order, based on data, research and strategic priorities. Communication - Our work will be communicated to our school community. B. Long -range financial forecast (new) Review & update financial policies Complete multi-year financial forecasts - Ehler's Model Analyze financial condition (general operating/transportation, capital, fund balance) Financial recommendations C. Board identifies annual budget targets Review current, basic/minimum level, & adjusted budget levels (budget scenarios) Use financial forecasts to assess fiscal sustainability Determine annual budget target for budget development D. Board identifies annual capital improvements Review general 10-year facilities plan Recommend annual detailed plan Determine annual budget target for budget development School Board Work Session 11/20/2012

22 PROGRAM EFFICIENCY, ABANDONMENT, AND REDIRECTION (PEAR) NARRATIVE PEAR Title: PEAR Reference Number: Director/Budget Manager: (brief statement of proposed adjustment) Fiscal Year: Division/Department: 1. Briefly describe the PEAR Proposal (copy information to the PEAR Proposal column on the LRFP PEAR worksheet). 2. What budgeted resources would be reduced (FTE and budget amount)? (copy information to the appropriate yellow columns on the LRFP PEAR worksheet). 3. To what extent are other resources available to maintain current services (grants or other funds)? What productivity improvements will offset the reduction? How will existing duties be assigned or eliminated? 4. What is the expected impact of this proposal on current services and/or the strategic plan? (Copy information to the Impact of Proposal column on the LRFP PEAR worksheet). 5. What other divisions or departments will be affected by your proposal? Have you consulted with them to determine their concerns and given them consideration? Briefly describe the feedback you received from other departmental leaders and impacted stakeholders. 6. What legal requirements, mandates, or School Board policies may be affected by this reduction? Revised 12/6/12 22

23 ORGANIZATIONAL SECTION The ISD 279 School Board is comprised of six individuals elected at large from the district. Board members serve four-year terms, which are staggered so that only three members are selected in any one election. Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 23

24 ISD 279 Osseo Area Schools School Board and Administrators Fiscal Year 2014 Annual Budget School Board Chairperson... Dean Henke Vice Chairperson...Teresa Lunt Clerk... Tammie Epley Treasurer... Jim Burgett Director... Linda Etim Director... Jacki Girtz Superintendent s Cabinet Superintendent of Schools... Kate Maguire Assistant Superintendent: Administration... Kim Riesgraf Assistant Superintendent: Leadership, Teaching & Learning... Teri Staloch Executive Director: Human Resources... Judy McDonald Executive Director: Community Engagement... Brian Siverson-Hall Director: School/Community Relations...Barbara Olson Chief Technology Officer... Tim Wilson School District General Counsel... Margaret Westin Building Principals Maple Grove Senior High School...Sara Vernig Osseo Senior High School...Bob Perdaems Park Center Senior High International Baccalaureate World School... Kelli Parpart Osseo Alternative Learning Center... TBD Brooklyn Junior High School... Kim Monette Maple Grove Junior High School... Lisa Hartman North View Junior High International Baccalaureate World School... John Groenke Osseo Junior High School... Brian Chance Basswood Elementary School... Patrick Smith Birch Grove Elementary School for the Arts... Jeff Zastrow Cedar Island Elementary School... Dan Wald Crest View Elementary School... Suzette Erickson Edinbrook Elementary School...Nanette Yurecko Elm Creek Elementary School... Jim Meyer Fair Oaks Elementary School... Phil Sadler Fernbrook Elementary School... Jeremy Willey Garden City Elementary School... Todd Tischer Oak View Elementary School... Ann Mock Palmer Lake Elementary School... Tim Brown Park Brook Elementary School... Scott Taylor Rice Lake Elementary School... Mark French Rush Creek Elementary School... Don Johnson Weaver Lake Elementary: A Science, Math, and Technology School... Dennis Palm Woodland Elementary School... Linda Perdaems Zanewood Community School...Carol Rowan 24

25 ISD Osseo Area Schools District Profile Fiscal Year 2014 Annual Budget ISD Osseo Area Schools is an award-winning school system that inspires and prepares all students with the confidence, courage, and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. ISD 279 is the fifth-largest school district in the state, serving all or parts of Brooklyn Center, Brooklyn Park, Corcoran, Dayton, Maple Grove, Osseo, Plymouth, and Rogers. The district serves more than 20,000 students, kindergarten through grade 12, in 17 elementary schools (PreK-6), four junior highs (7-9), three senior highs (10-12), an area learning center, two early childhood centers, two special program sites, and an adult education/enrollment center. Community education classes serve lifelong learners from birth through senior citizens. The district is known for excellence in areas ranging from academics and arts to sports and finance. ISD 279 is the only Minnesota school district honored as one of the nation s Best Communities for Music Education every year since The district is home to three National Blue Ribbon elementary schools: Cedar Island (1990); Park Brook (1997); and Rush Creek (2007). Woodland Elementary was named a Minnesota School of Excellence (2011) and a Family Friendly School (2009). Magnet schools have earned state and national recognition as Schools of Excellence or Schools of Distinction. The district s careful stewardship of taxpayer funds has been recognized by the Minnesota Department of Education and the Association of School Business Officials International. Osseo is the only school district in the nation that has earned certification as an authorized training site for the International Society for Technology in Education, sharing that status with prestigious companies such as Intel, Verizon, PBS, and Adobe. ISD 279 has what parents want in an excellent school district, according to SchoolMatch, a national school evaluation company. Magnet schools allow students to deepen their learning in special focus areas. At Weaver Lake Elementary: A Science, Math & Technology School, students discover the scientists in themselves through inquiry-based, hands-on classroom science and math activities, using current technology and equipment for collecting and analyzing data. Birch Grove School for the Arts offers students opportunities to achieve through the integration of fine arts, dance, drama, and music. At the secondary level, North View Junior High (7-9) and Park Center Senior High (10-12) offer the International Baccalaureate (IB) Middle Years and Diploma Programmes, recognized worldwide for their challenging international education and rigorous assessment programs. Brooklyn Junior High offers a STEM magnet program that is expanding, as planned, to a full-school STEAM (STEM plus Arts) program, starting with the school year. Osseo Senior High s popular health science offerings have expanded into a full health science magnet program. 25

26 Gifted Education programs serve the academic, social and emotional needs of gifted/talented learners. Every high school, plus Brooklyn Junior High, offers college-level courses through the Advanced Placement program. Co-curricular offerings build character, stretch minds, and challenge the body. Students have been recognized as state champions in various sports; Minnesota State High School League Academic Excellence award winners; state qualifiers in multiple sports; All-Conference musicians; and the Hennepin Theater Trust Spotlight Award. ISD 279 students reflect the global community, coming from homes where more than 80 dialects or languages other than English are spoken. Diverse demographics contribute to rich, real-life learning environments that prepare students for the 21 st century workplace. Preschool is offered at both early childhood centers and four elementary schools. All-day kindergarten options (some tuition-based) and/or before- and after-school child care (gr. K-6) are available at all elementary sites. For more information, please call or 4/13 26

27 ELEMENTARY SCHOOLS ALL area codes are 763 BASSWOOD ELEMENTARY Bass Lake Road Maple Grove, MN FAX: BIRCH GROVE ELEMENTARY SCHOOL FOR THE ARTS 4690 Brookdale Drive Brooklyn Park, MN FAX: CEDAR ISLAND ELEMENTARY 6777 Hemlock Lane Maple Grove, MN FAX: CREST VIEW ELEMENTARY 8200 Zane Avenue North Brooklyn Park, MN FAX: EDINBROOK ELEMENTARY 8925 Zane Avenue North Brooklyn Park, MN FAX: ELM CREEK ELEMENTARY 9830 Revere Lane North Maple Grove, MN FAX: FAIR OAKS ELEMENTARY th Avenue North Brooklyn Park, MN FAX: FERNBROOK ELEMENTARY 9661 Fernbrook Lane Maple Grove, MN FAX: GARDEN CITY ELEMENTARY th Avenue North Brooklyn Center, MN FAX: OAK VIEW ELEMENTARY 6710 East Fish Lake Road Maple Grove, MN FAX: PALMER LAKE ELEMENTARY 7300 West Palmer Lake Drive Brooklyn Park, MN FAX: PARK BROOK ELEMENTARY 7400 Hampshire Avenue North Brooklyn Park, MN FAX: RICE LAKE ELEMENTARY th Avenue North Maple Grove, MN FAX: RUSH CREEK ELEMENTARY 8801 County Road 101 Maple Grove, MN FAX: WEAVER LAKE ELEMENTARY: A SCIENCE, MATH, AND TECHNOLOGY SCHOOL Weaver Lake Road Maple Grove, MN FAX: WOODLAND ELEMENTARY 4501 Oak Grove Pkwy. Brooklyn Park, MN FAX: ZANEWOOD COMMUNITY SCHOOL 7000 Zane Avenue North Brooklyn Park, MN FAX: SECONDARY SCHOOLS ALL area codes are 763 BROOKLYN JUNIOR HIGH 7377 Noble Avenue North Brooklyn Park, MN FAX: MAPLE GROVE JUNIOR HIGH 7000 Hemlock Lane Maple Grove, MN FAX: MAPLE GROVE SENIOR HIGH 9800 Fernbrook Lane Maple Grove, MN FAX: NORTH VIEW JUNIOR HIGH INTERNATIONAL BACCALAUREATE WORLD SCHOOL th Avenue North Brooklyn Park, MN FAX: OSSEO AREA LEARNING CENTER 7300 Boone Avenue North Brooklyn Park, MN FAX: OSSEO JUNIOR HIGH rd Avenue North Osseo, MN FAX: OSSEO SENIOR HIGH 317 Second Avenue N.W. Osseo, MN FAX: PARK CENTER SENIOR HIGH INTERNATIONAL BACCALAUREATE WORLD SCHOOL 7300 Brooklyn Boulevard Brooklyn Park, MN FAX:

28 EARLY CHILDHOOD PROGRAMS EARLY CHILDHOOD FAMILY EDUCATION Arbor View Early Childhood Ctr Fernbrook Lane Maple Grove, MN FAX: Willow Lane Early Childhood Ctr Perry Avenue North Brooklyn Center, MN FAX: EARLY CHILDHOOD SPECIAL EDUCATION Willow Lane Early Childhood Ctr Perry Avenue North Brooklyn Center, MN FAX: Arbor View Early Childhood Ctr Fernbrook Lane Maple Grove, MN FAX: ADDITIONAL PROGRAMS OSSEO SECONDARY TRANSITION CENTER 7105 Northland Terrace Suite 102 Brooklyn Park, MN FAX: ADULT EDUCATION CENTER (ABE, GED, ELL Programs) Adult Education Center 7051 Brooklyn Boulevard Brooklyn Center, MN FAX: ACHIEVE 7600 Boone Avenue N, Suite 72 Brooklyn Park, MN FAX: CBVAT 7600 Boone Avenue N, Suite 70 Brooklyn Park, MN FAX: ENROLLMENT CENTER 7051 Brooklyn Blvd. Brooklyn Center, MN FAX: Educational Service Center rd Avenue North Maple Grove, Minnesota FAX: April

29 29

30 30

31 31

32 6/3/2013 School District General Counsel School Board Superintendent of Schools Director School/Community Relations Executive Director: Human Resources Asst. Superintendent: Administration Asst. Superintendent: Leadership, Teaching & Learning Executive Director: Community Engagement Chief Technology Officer Director: Human Resources (Labor Relations) Director: Food & Nutrition Director: Student Services Principals POSA Coordinator: Facilities & Volunteers Coordinator: Information Systems Director: Human Resources Supervisor: Food & Nutrition Asst. Director: Student Services Assistant Principals Activities Coordinators Program Manager: Facilities & Volunteers Coordinator: Instructional Media Coordinator: Total Compensation and HRIS Director: Business Services District Nurse Director: Educational Equity Director: Curriculum Instruction & Educational Standards Coordinator: Marketing & Enrichment Technology Integration Specialists Coordinator: Employee Serv & Performance Mgmt Coordinators: Accounting/Payroll Homeless Liaison American Indian Ed Specialists Coordinator: Curriculum and Instruction Program Manager: Youth Enrichment & Academics Coordinator: Network Services Accountant Wellness Manager Coordinators: English Learners Coordinator: Career & Tech Ed Coordinator: Center for Enrollment Services Coordinator: Technical Support Services 32 Coordinator: Purchasing & Warehouse Coordinators: Special Education Bilingual Cultural Liaisons ATPPS Facilitators Coordinator: Programs & Operations Director: Operations/ Facilites Accountant: Student Services Student Learning Advocates Staff Dvlpmt Assessment Specialist Coordinator: Publications Coordinator: Health & Safety/ Workers Comp Equity Teachers Coordinators: PreK-12 Operations Coordinator: Early Childhood Education Coordinator: Building and Grounds Principals Director: Research, Assessment & Accountability Coordinator: Adult Basic Ed Coordinator: Transportation Assistant Principal Coordinator: Data and Assessment Coordinator: 21st Century and Targeted Services Coordinator: Custodial Coordinator: Research, Assess & Accountability ISD 279 Osseo Area Schools Integrated Organizational Chart Human & Administrative Resources Team (HART) Department of Leadership, Teaching and Learning (DLTL) Community Engagement (CEn) Instructional & Information Technology Team (I2T2)

33 General Operating/Transportation Budget Division of Community Engagement (CEn) Departments FY 2014 Budget $2,011,508-1% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($174,438) - 6% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. Office of Superintendent The superintendent is the chief executive officer of the organization and reports to the school board. The superintendent's office functions as a key communicator for the organization and makes high-level decisions about policy and strategy. The office manages school board, superintendent, general counsel, school elections and district initiative budgets. Community Engagement The Community Engagement Department provides administrative and leadership support to the Osseo Area Schools System through the School Board, Superintendent s office, Community Relations, Publications, and the Enrollment Center. 33 FY 2014 Budget FY 2014 Budget FY 2014 Budget $824,617 FY 2014 Budget % of General Operating/Transportation Budget 0.40% % of General Operating/Transportation Budget Per Pupil Cost $34.84 Per Pupil Cost Full Time Equivalent (FTE) 4.00 Full Time Equivalent (FTE) $887, % $ Change From Prior Year Change From Prior Year - Reduce general supplies - Reduce enrollment center substitute nurse hours - Reduce advertising and printing - Reduce casual labor - Reduce dues and membership - Reduce staff training and travel - Reduce contracted services

34 General Operating/Transportation Budget Division of Community Engagement (CEn) Departments FY 2014 Budget $2,011,508-1% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($174,438) - 6% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. Community Relations The Community Relations Department designs and implements a comprehensive communications program that is systematic, two-way, and aligned with the school district s strategic plan. 34 FY 2014 Budget FY 2014 Budget % of General Operating/Transportation Budget Per Pupil Cost Full Time Equivalent (FTE) $299, % $ Change From Prior Year - Reduce general supplies - Reduce postage, advertising, and printing - Reduce contracted services

35 General Operating/Transportation Budget Division of Leadership, Teaching and Learning (DLTL) Departments FY 2014 Budget $125,018,039-62% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($1,861,694) - 60% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. DLTL Operations and Sites DLTL Operations is responsible for developing, implementing, managing, and evaluating operational and management support systems for elementary and secondary sites and system level efforts. Curriculum Instruction and Educational Standards (CIES) CIES provides staff development in the areas of curriculum, instruction, and assessment; leads program improvement processes to align curriculum, instruction, and assessment; and ensures high quality instruction that leads to increased student learning and equitable achievement gains. 35 FY 2014 Budget FY 2014 Budget FY 2014 Budget $79,637,650 FY 2014 Budget % of General Operating/Transportation Budget 39.20% % of General Operating/Transportation Budget Per Pupil Cost $3, Per Pupil Cost Full Time Equivalent (FTE) 1, Full Time Equivalent (FTE) $4,359, % $ Change From Prior Year Change From Prior Year - Eliminate.5 FTE of curriculum coordinator for music, restructure - Eliminate 1 FTE of curriculum coordinator for gifted education, music coordination restructure gifted education coordination - Reduce school-level staff development training - Eliminate 1 FTE of teacher on special assignment, restructure - Reduce DLTL supplies curriculum support - Reduce capacity for transportation for in-district educational - Reduce secondary teacher support allocation from gifted programming education (.2 FTE at each Junior High) - Reduce weekend/holiday events and other transportation and - Reduce.2 FTE of Senior High Autonomous Learning Program supplies for athletics support - Reduce 1.58 FTE of classroom teachers - Reduce district-level staff development training - Reduce 1.33 FTE of K-13 Educational Support Professionals (ESP) - Fewer days for teacher extended contracts

36 General Operating/Transportation Budget Division of Leadership, Teaching and Learning (DLTL) Departments FY 2014 Budget $125,018,039-62% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($1,861,694) - 60% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. Educational Equity Research, Assessment, and Accountability The Department of Educational Equity creates transformational change in the system to ensure equitable student achievement by building system-wide capacity to de-institutionalize racial inequity, in order to improve cultural relevancy and to effectively implement the common practices of schools and systems that achieve and sustain equitable student achievement. The English Learning program is administered through the department to assist English Learner students with the attainment of English language proficiency in order to meet the same challenging state academic standards all students are expected to meet. 36 The Research, Assessment, and Accountability department provides excellence in education through data-supported decision making and enhances student learning by serving the needs of administration, staff, parents, and students for: quality, timely achievement and survey data in forms useful for decision making and improvement planning, support of data interpretation and use, and management and support of mandated and local assessment. FY 2014 Budget FY 2014 Budget FY 2014 Budget $4,876,912 FY 2014 Budget % of General Operating/Transportation Budget 2.40% % of General Operating/Transportation Budget Per Pupil Cost $ Per Pupil Cost Full Time Equivalent (FTE) Full Time Equivalent (FTE) $590, % $ Change From Prior Year - Eliminate 2.7 FTE of English Learner (EL) positions - Reduce site testing support - Reduce instructional supplies Change From Prior Year

37 General Operating/Transportation Budget Division of Leadership, Teaching and Learning (DLTL) Departments FY 2014 Budget $125,018,039-62% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($1,861,694) - 60% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. 37 Student Services provides services and support to all students to ensure access to and the provision of a free and appropriate public education. Student Services includes special education, counseling and guidance, health services, and other student support services. Special Education FY 2014 Budget Student Services Other Student Support FY 2014 Budget FY 2014 Budget $32,640,651 FY 2014 Budget $2,912,703 % of General Operating/Transportation Budget 16.07% % of General Operating/Transportation Budget 1.43% Per Pupil Cost $1, Per Pupil Cost $ Full Time Equivalent (FTE) Full Time Equivalent (FTE) Change From Prior Year Change From Prior Year - Reclassify full services special education teacher costs to 3rd No significant changes made from previous year's budget. party billing - Reduce 1 FTE of Developmental Adaptive Physical Education (DAPE) teacher - Restructure elementary setting IV special education services - Restructure special education summer and contracted services capacity - Reduce FTE of special education teachers/esps - Reduce 1 FTE of technology integration specialist - 5 fewer days for autism behavior teachers - Reduce.97 FTE of clerical positions; reclassify a clerical position

38 General Operating/Transportation Budget Division of Human Administrative Resources Team (HART) Departments FY 2014 Budget $73,514,917-36% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($890,804) - 29% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. FY 2014 Budget adjustment explained in Fiscal Year 2014 Budget Memo to Board Members and Superintendent Maguire dated June 18, adjustment detail is listed in each department's budget summary under the change from prior year section. Human Resources Human Resources plans for, develops and secures human capital for the organization, delivers employment services, ensures compliance and internal and external employment credibility. Employee Benefits Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate area, since the District does not use benefit accounting. 38 FY 2014 Budget FY 2014 Budget FY 2014 Budget $1,193,218 FY 2014 Budget $40,871,407 % of General Operating/Transportation Budget 0.59% % of General Operating/Transportation Budget 20.12% Per Pupil Cost $50.41 Per Pupil Cost $1, Full Time Equivalent (FTE) Full Time Equivalent (FTE) - Change From Prior Year Change From Prior Year - Eliminate 1 FTE of labor relations analyst position, additional duties - Medical insurance increase of 6% from Health Partners penalty from reduced position assigned to existing staff due to a change in provider for a number of employee groups - Adjust chargeback for services to other funds to a non-district sponsored plan - Teacher retiree payout of $17,000 for 60 FTEs for FY 2013 only - TRA rate increase from 6.5% to 7.0%, effective July 1, Employer portion of long-term disability and life insurance premium reductions of 25% and 13%, respectively, based on renewal of both plans for FY Workers compensation estimated 15% rate increase due to industry needs rather than a direct correlation to claims reported or paid for FY 2014

39 General Operating/Transportation Budget Division of Human Administrative Resources Team (HART) Departments FY 2014 Budget $73,514,917-36% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($890,804) - 29% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. FY 2014 Budget adjustment explained in Fiscal Year 2014 Budget Memo to Board Members and Superintendent Maguire dated June 18, adjustment detail is listed in each department's budget summary under the change from prior year section. Administration Administration works closely with schools and district administration in planning facilities, operating, nutrition services, and providing financial services, student services, and student transportation. The budget focuses on providing professional development for HART administration consulting and legal services for district wide priorities and general liability insurance. Business Services and Warehouse Business Services plans, develops, secures, and effectively manages fiscal resources in compliance with internal and external accountability requirements, which encompass accounting, accounts payable, payroll, purchasing, and warehouse, to support the education of all students. 39 FY 2014 Budget FY 2014 Budget FY 2014 Budget $2,181,765 FY 2014 Budget $411,783 % of General Operating/Transportation Budget 1.07% % of General Operating/Transportation Budget 0.20% Per Pupil Cost $92.18 Per Pupil Cost $17.40 Full Time Equivalent (FTE) 3.70 Full Time Equivalent (FTE) Change From Prior Year Change From Prior Year No significant changes made from previous year's budget. - Eliminate 1 FTE of accounts payable clerical position, additional duties from reduced position assigned to existing staff - Adjust chargeback for services to other funds - Restructure media and interschool delivery services - Federal indirect chargeback rate increased from 1.6% in FY 2013 to 4% in FY 2014

40 General Operating/Transportation Budget Division of Human Administrative Resources Team (HART) Departments FY 2014 Budget $73,514,917-36% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($890,804) - 29% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. FY 2014 Budget adjustment explained in Fiscal Year 2014 Budget Memo to Board Members and Superintendent Maguire dated June 18, adjustment detail is listed in each department's budget summary under the change from prior year section. Custodial and Maintenance provides district-wide administration of custodial services, site level operations of 34 facilities including utilities, and prepares the building for staff, students and community members. The maintenance team members are the stewards of the physical plant and grounds for all district facilities. It is our responsibility to design and conduct proactive preventive maintenance systems and strategies, respond to breakdowns in mechanical systems and design and operate energy efficient mechanical systems. 40 Custodial and Maintenance Transportation Transportation develops and oversees transportation services with sound fiscal resources to provide transportation to all eligible students in a safe and efficient manner with students arriving to school prepared and ready to learn. FY 2014 Budget FY 2014 Budget FY 2014 Budget $11,435,596 FY 2014 Budget $17,421,148 % of General Operating/Transportation Budget 5.63% % of General Operating/Transportation Budget 8.58% Per Pupil Cost $ Per Pupil Cost $ Full Time Equivalent (FTE) Full Time Equivalent (FTE) Change From Prior Year Change From Prior Year - Reclassify 3.67 FTE of custodial/maintenance staff to other funds - Reduce late activity buses by 33% - Eliminate 2.9 FTE of custodial positions, restructure custodial - Reduce 1.26 FTE of ESPs services - Transportation contract award increased 2.49% for FY Reduce custodial supply budget - Reduce contracted repair capacity

41 General Operating/Transportation Budget Division of Instructional and Information Technology Team (I2T2) Departments FY 2014 Budget $2,596,429-1% of total General Operating/Transportation budget $203,140,893 FY 2014 Reduction ($147,573) - 5% of total General Operating/Transportation reduction ($3,074,509) Reduction detail is listed in each department's budget summary under change from prior year section. Instructional and Information Technology I2T2 ensures equitable and reliable technology access, facilitate ongoing support and training, and to explore and develop new technology opportunities for students, families, and employees. 41 FY 2014 Budget FY 2014 Budget % of General Operating/Transportation Budget Per Pupil Cost Full Time Equivalent (FTE) $2,596, % $ Change From Prior Year - Eliminate 2 FTE of technology support - Reduce casual labor

42 FINANCIAL SECTION The accounting procedures and standards utilized by ISD 279 Osseo Area Schools comply with the Minnesota Uniform Financial Accounting and Reporting System (UFARS). Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 42

43 ISD 279 Osseo Area Schools Budget Calendar Fiscal Year 2014 Annual Budget Due Date Site and Program Allocations Distributed for Salaries (100 objects) March 7 Budget Material Prepared by Business Services sent to Budget Managers Memo: FY2014 Budget Instructions and Electronic Document Week of March 18 Budget Requests for Sites, Departments, and/or Programs due to Respective Cabinet Members: Division of Leadership, Teaching and Learning (DLTL) April 2 Human and Administrative Resource Team (HART) April 2 Instructional & Information Technology Team (I2T2) April 2 Community Engagement (CEn) April 2 Food Service April 2 Community Education April 2 Fiscal Year 2014 Budget Working Document due to the Director of Business Services April 12 Presentation of Proposed Budget and Board Review: Review with Superintendent and Cabinet May 22 Budget Document Sent to Board May 28 Presentation and Review with Board June 3-7 Board Approval June 18 43

44 44 ISD Osseo Area Schools FY 2014 Budget Planning Timeline Key: Black Font - Budget Process, Blue Font - Board Action General Fund Operating/Transportation Budget April July 2012 Pre-Planning Strategic Priority Results and Long Range Financial Planning November 15, :00 PM FISCAL Meeting November 20, :00 PM 8:00 PM School Board Work Session School Board Regular Meeting Pre-Planning Review budget planning process Accept FY 2012 Audit Results December 4, :00 PM December 10, 2012 School Board Regular Meeting Approve FY 2014 Maximum Levy Limitation Certification Provide direction to budget managers December 11, :00 PM December 13, 2012 December 14, 2012 School Board Work Session Continue Budget Planning Review budget trends, ernollment projections & estimated fund balances Review time frame for detailed (FY 2014) and broad budget planning (FY 2015) Determine budget assumptions and estimates for revenues, expenditures, adjustments and fund balance Review state financial outlook, benchmark budget assumptions and revenue opportunites (voter approved operating referendum or capital projects levy) Identify budget goals/targets Learning Leaders - gather feedback Launch online budget survey January 8, :00 PM December, February, 2013 January 10, 2013 January 11, 2013 January 24, 2013 January 29, :00 PM February 5, :00 PM Regular School Board Meeting School Board Work Session Regular School Board Meeting FY 2014 Budget Development Feedback Staff input - Cabinet, Budget managers & Learning Leaders Community feedback - FISCAL Advisory Team, "We Listen" address Budget Managers - submit completed packages to Cabinet point person Close online budget survey Long Range Financial Planning Design Team review Continue Budget Planning - share survey results & proposed budget packages February 6, 7 and 11, 2013 Community forums February 19 & 27, :00 PM February 19, :00 PM March 5, :00 PM May - June, 2013 School Board Work Session Regular School Board Meeting FY 2014 Budget Development Review of FY 2014 Budget Development Input and Feedback Approve FY 2013 mid-year budget adjustment Regular School Board Meeting Approval of original adopted Operating Capital budget for FY 2014 Approval of General Operating/Transportation FY 2014 adjustments Review budget based on legislative changes. Make adjustment if necessary. June 18, :00 PM Regular School Board Meeting Approval FY 2014 General Operating/Transportation budget July, 2013 Prepare for FY 2013 Audit 11/20/2012 Revised 12/10/2012 Revised for 12/11/2012, 1/29/2013, 2/19/2013 School Board Meetings

45 ISD 279 Osseo Area Schools Financial Policy and Administration Fiscal Year 2014 Annual Budget Overview This section details the financial policy of the ISD 279 (the District) as it relates to budgeting and financial management & reporting issues. Many of the financial policies and procedures are statutory. Reporting Entity The financial reporting entity includes all the funds, departments, agencies, board and other organizations that comprise the District. There are no component units (legally separate entities for which the primary government is financially accountable). Extracurricular student activities are determined primarily by student participants under the guidance of an adult and are generally conducted outside of school hours. In accordance with Minnesota Statutes, the District s School Board has elected not to control or be otherwise financially accountable with respect to the underlying extracurricular activities. Accordingly, the extracurricular student activity accounts are not included in the financial statements. Financial Controls Management of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles and with Minnesota Uniform Financial Accounting and Reporting Standards (UFARS). The internal control structure 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 costs and benefits requires estimates and judgments by management. Description of Funds The existence of the various District funds has been established by the Minnesota Department of Education. Each fund is accounted for as an independent entity. Descriptions of the funds are as follows: Major Governmental Funds General Fund used to account for all financial resources except those required to be accounted for in another fund. The District s General Fund maintains two accounts: 1. Operating Account used to account for the general operations of the District, including pupil transportation activities. 2. Capital Expenditure Account used to account for the maintenance of facilities, equipment purchases, health and safety projects, and disabled accessibility projects. 45

46 Budgeting Capital Projects-Building Construction Fund used to account for financial resources used for the acquisition or construction of major capital facilities authorized by levy or bond issue. Debt Service Fund Debt service funds are used to account for the accumulation of resources for, and payment of, general obligation bonds, interest, and related costs. The General Obligation Bonds Debt Service Account is used for the debt service on all general obligation bonds except for the 2009A Taxable Other Post-Employment Benefits (OPEB) Bond issue for which a separate Other Post-Employment Benefit Bonds Debt Service Account is established. Nonmajor Governmental Funds Food Service Special Revenue Fund used to account for food service revenues and expenditures. Community Service Special Revenue Fund used to account for services provided to residents in the areas of recreation, civic activities, nonpublic pupils, adult or early childhood programs, K-6 extended day programs, or other similar services. Proprietary Funds Internal Service Funds The internal service funds account for the financing of goods or services provided by one department to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The District has three internal service funds. The District s internal service funds include financing for self-insurance of the employee dental insurance program, retirement incentive pay, and post-employment benefits revocable trust activity. Fiduciary Funds Employee Benefit Trust Funds These funds are used to administer resources received and held by the District as the trustee for others. These funds include the District s Flexible Benefit Plan. (Internal Revenue Code 125 Cafeteria Plan) and the Post-Employment Benefits irrevocable Trust Fund (Internal Revenue Code 501 (c) 9). The Post-Employment Benefits Irrevocable Trust Fund includes assets held in an irrevocable trust and a revocable trust to fund post-employment healthcare benefits of eligible employees. Agency Fund This fund is established to account for cash and other assets held by the District as the agent for others. This fund is used to account for a local collaborative time study grant. In addition, the District maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the School Board. The budget for each fund is prepared on the same basis of accounting as the fund financial statements. Each June, the School Board adopts an annual budget for the following fiscal year for the General (including separate budgets for the Operating, Transportation, and Capital Expenditure Accounts), Food Service Special Revenue Fund, Community Service Special Revenue Fund, General Obligation 46 2

47 Bonds Debt Service Account, and Other Post-Employment Benefits Bonds Debt Service Account. An annual budget is not adopted for the Capital Projects-Building Construction Fund because project length financial plans are adopted in accordance with bond issue authorization. A mid-year amendment is made to the budget annually. Unencumbered expenditure appropriations lapse at year-end. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not represent expenditures or liabilities. Encumbrances outstanding at year-end are re-appropriated in the ensuing year s budget, and the related expenditures are recorded in the ensuing year. Measurement Focus of Accounting The measurement focus of a fund determines what the fund measures. All governmental fund types and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Proprietary Funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets (if any). Basis of Accounting A fund s basis of accounting determines when a transaction or event is recognized in the fund s operating statement. All governmental fund types, expendable trust funds, and agency funds use the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: Revenue Recognition Revenue is recognized when it becomes measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Recording of Expenditures Expenditures are generally recorded when a liability is incurred, except for interest and principal on long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. Internal service and fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The District applies only those applicable pronouncements of the Financial Accounting Standards Board issued on or before November 30, 1989 in accounting and reporting for its proprietary operations. 47 3

48 Cash and Investments Cash and temporary investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Cash and investments held by trustee include balances held in segregated accounts that are established for specific purposes. In the Internal Service Funds, trust accounts are established to finance future OPEB obligations. In the Employee Benefit Trust Funds, trust accounts are established for flexible benefits and OPEB payable to employees. Interest earned on these investments was allocated directly to those accounts. Short-term, highly liquid debt instruments (including commercial paper, banker s acceptances, and U.S. Treasury and agency obligations) purchased with a remaining maturity of one year or less are reported at amortized cost. Other investments are reported at fair value. Receivables All receivables are shown net of any allowance for uncollectibles. No allowances for uncollectible have been recorded. The only receivables not expected to be collected within one year are current property taxes receivable. Inventories Inventories are recorded using the consumption method of accounting and consist of purchased food, supplies, and surplus commodities received from the federal government. Food and supply purchases are recorded at invoice cost, computed on a first-in, first-out method. Surplus commodities are stated at standardized costs, as determined by the U.S. Department of Agriculture. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Prepaid items are reported using the consumption method and recorded as expenditure at the time of consumption. Property Taxes The majority of District revenue is determined by statutory funding formulas. The total revenue allowed by these formulas is allocated between property taxes and state aids by the Legislature based on education funding priorities. Generally, property taxes are recognized as revenue by the District in the fiscal year that begins midway through the calendar year in which the tax levy is collectible. To help balance the state budget, the Minnesota Legislature utilizes a tool referred to as the tax shift, which periodically changes the District s recognition of property tax revenue. The tax shift advance recognizes cash collected for the subsequent year s levy as current year revenue, allowing the state to reduce the amount of aid paid to the District. While, total revenue and fund balance are not significantly affected by the tax shift, the District s cash position is directly impacted. Property tax levies are certified to the County Auditor in December of each year for collection from taxpayers in May and October of the following calendar year. In Minnesota, counties act as collection agents for all property taxes. The county spreads all levies over taxable property. Such taxes become a lien on property on the following January 1. The county remits taxes to the District at 48 4

49 periodic intervals, as they are collected. A portion of property taxes levied is paid by the State of Minnesota through various credits, which are included in revenue from state sources in the financial statements. Taxes which remain unpaid are classified as delinquent taxes receivable. Revenue from these delinquent property taxes that is not collected within 60 days of year-end is deferred in the fund financial statements because it is not known to be available to finance the operations of the District in the current year. No allowance for uncollectible taxes is considered necessary. Capital Assets Capital assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The District maintains a threshold level of $5,000 or more for capitalizing capital assets. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public school purposes by the District, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from 20 to 50 years for land improvements and buildings, and 5 to 15 years for furniture and equipment. Capital assets not being depreciated include land and construction in progress. The District does not possess any material amounts of infrastructure capital assets, such as sidewalks and parking lots. Such items are considered to be part of the cost of buildings or other improvable property. Statement of Cash Flows For purposes of the statement of cash flows, the District considers all highly liquid debt instruments with an original maturity from the time of purchase of three months or less to be cash equivalents. The proprietary fund s equity in the District-wide cash and investment management pool is considered to be cash equivalents. Deposits and Investments Deposits In accordance with applicable Minnesota Statutes, the District maintains deposits at depository banks authorized by the School Board, including checking accounts, savings accounts, and non-negotiable certificates of deposits. The following is considered the most significant risk associated with deposits: Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the District s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated A or better; revenue obligations rated AA or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as 49 5

50 Investments collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The District s deposit policies do not further limit depository choices. Investments are subject to various risks, the following of which are considered the most significant: Custodial Credit Risk For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the District would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Although the District s investment policies do not directly address custodial credit risk, it typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. Credit Risk This is the risk that an insurer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the District s investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated A or better; revenue obligations rated AA or better; general obligations of the Minnesota Housing Finance Agency rated A or better; bankers acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreement and securities lending agreements with financial institutions qualified as a depository by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The District has an internal investment policy that limits investment choices and addresses these potential risks beyond the statutory limitations described above. The District s policy requires that investments be diversified to avoid unreasonable risks inherent in over investing in specific instruments, individual financing institutions, or maturities. No more than 66 percent of the total portfolio can be placed with any one depository. The maximum percentage, in which the portfolio can be invested, in specific instruments, is as follows: U.S. treasury obligations 100 % U.S. government agency securities and Instrumentalities of government sponsored corporations 75 % Repurchase agreements 25 % Certificates of deposit FDIC covered 100 % Certificates of deposit savings and loans 75 % Local government investment pool 75 % Money market fund 75 % 50 6

51 Concentration Risk This is the risk associated with investing a significant portion of the District s investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. Interest Rate Risk This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The District s investment policies do not limit the maturities of investments; however, the District considers such things as interest rates and cash flow needs when purchasing investments. Long-Term Obligations Bond premiums and discounts are deferred and amortized over the life of the bonds using the straightline method. Bond issuance costs, if material, are reported as deferred charges and amortized over the term of the related debt. Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Post-Employment Severance Benefits The District provides post-employment severance benefits to certain eligible employees. The District finances these obligations with an internal service fund. The District maintains various early retirement incentive payment plans for its employee groups. The amount of the early retirement incentive payment is calculated by converting a portion of accrued sick leave, by computing a benefit based solely on years of service, or a combination of both. No employee can receive a payment exceeding one year s salary. All of the post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements. The District has established a separate Retirement Incentive Pay Internal Service Fund to account for the post-employment severance benefits. The benefits are funded as the liability is incurred on an actuarially determined basis. In addition to the funding of accumulated benefits already earned, the District s funding policy requires an annual contribution of an amount equal to the current year service cost adjusted for any amortization. As part of the actuarial valuation, the projected unit credit actuarial cost method is used. A discount rate (equal to the current interest rate on the District s investments) is used to discount the obligation. Risk Management The District is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and workers compensation for which the District carries commercial insurance. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. There were no significant reductions in the District s insurance coverage in fiscal year The District maintains the Dental Self-Insurance Internal Service Fund to account for and finance its uninsured risk of loss for an employee dental plan. The Internal Service Fund is funded by the 51 7

52 District and employee contributions and interest income. The District pays for claims by an individual up to $1,000. Although the District only pays up to $1,000 per individual per year, there is a possibility for loss if claims exceed premiums collected. The District does not expect this occurrence would have a material financial effect on the District. Post-Employment Healthcare Benefit Plan The District Provides post-employment healthcare benefits to certain eligible employees. The District provides these benefits in a single-employer defined benefit healthcare plan administered by the District. All of the post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements. These benefits are summarized as follows: Other Post Employment Medical Plan All retirees of the District have the option to continue their medical coverage into retirement. Retirees must pay the full district premium rate for their coverage and dependent coverage. Coverage in the District s plan ends at age 65. Teachers Post Employment Medical Plan For teachers with 15 continuous years of service, they are eligible to receive a contribution towards the teacher s health insurance after retirement from age 55 to 65. The amount will be determined by multiplying the teacher s daily rate of pay at the time of retirement times the number of the teacher s accumulated sick leave days in excess of 123 days as of the date of retirement. However, the total amount will not exceed $37,800. The monthly district contribution toward the premium will be determined using the cumulative total amount earned divided by the number of months until the teacher qualifies for Medicare. The benefit amount will not exceed 100 percent of the premium of the insurance plan selected by the teacher. If the teacher s full time equivalent (FTE) status is not full-time at the time of retirement, the benefit will be prorated according to the teacher s current FTE. Administrators Post Employment Medical Plan The District pays for full medical plan coverage after retirement for certain administrators and their spouses and dependents up to age 65. Flexible Benefit Plan The District has a flexible benefit plan which is classified as a cafeteria plan under 125 of the Internal Revenue Code. All employee groups of the District are eligible if and when the collective bargaining agreement or contact with their group allows eligibility. Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the flexible benefit plan for healthcare and dependent care benefits. Before the beginning of the flexible benefit plan year, each participant designates a total amount of pre-tax dollars to be contributed to the flexible benefit plan during the year. At June 30, the District is contingently liable for claims against the total amount of participants annual contributions to the medical reimbursement portion of the flexible benefit plan, whether or not such contributions have been made. Payments of insurance premiums (health, dental, life, and disability) are made by the District directly to the designated insurance companies. These payments are made on a monthly basis and are accounted for in the General Fund. 52 8

53 Amounts withheld for medical reimbursement and dependent care are paid by the District to a trust account maintained by an outside administrator on a monthly basis. Payments are made by the outside administrator to participating employees upon submitting a request for reimbursement of eligible expenses incurred by the employee. The medical reimbursement and dependent care activity is included in the financial statements in the Post-Employment Benefits Revocable Trust Internal Service Fund, Flexible Benefit Plan and the Post-Employment Benefits Irrevocable Trust Fund. All property of the flexible benefit plan and income attributable to that property is solely the property of the District, subject to the claims of the District s general creditors. Participants rights under the plan are equal to those of general creditors of the District in an amount equal to eligible healthcare and dependent care expenses incurred by the participants. The District believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Restricted Assets Restricted assets are cash and cash equivalents and the related interest receivable whose use is limited by legal requirements such as a bond indenture. Restricted assets are reported only in the districtwide financial statements. In the fund financial statements these assets have been reported as cash and investments held by trustee and the interest receivable is included within accounts and interest receivable. 53 9

54 ALL FUNDS Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 54

55 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

56 GENERAL/TRANSPORTATION FUND Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 56

57 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

58 GENERAL/TRANSPORTATION FUND REVENUE SUMMARY Revenue (by source) FY 2012 Actual FY 2012 Revenue Per AMCPU FY 2013 Revised Budget FY 2013 Revenue Per AMCPU FY 2014 Adopted Budget FY 2014 Revenue Per AMCPU Local Property Taxes $ 44,235,803 $ 1,861 $ 39,994,148 $ 1,687 $ 41,400,488 $ 1,749 Investment Earnings and Other 3,881, ,090, ,270, State Sources 147,657,186 6, ,407,944 6, ,649,325 6,661 Total Revenue $ 195,774,986 $ 8,235 $ 198,492,881 $ 8,372 $ 201,320,803 $ 8,506 Total Adjusted Marginal Cost Pupil Unit (AMCPU) 23,774 23,709 23,669 FY 2014 Adopted Budget % Local Property Taxes 78.3% 1.1% Investment Earnings and Other State Sources June 18, 2013

59 GENERAL/TRANSPORTATION FUND EXPENDITURE SUMMARY BY OBJECT Expenditures (by object) FY 2012 Actual FY 2012 Expenditures Per AMCPU FY 2013 Revised Budget FY 2013 Expenditures Per AMCPU FY 2014 Adopted Budget FY 2014 Expenditures Per AMCPU Budget Percent Change Salaries $ 128,685,283 $ 5,413 $ 128,527,234 $ 5,421 $ 125,861,054 $ 5, % Benefits 38,913,133 1,637 43,917,857 1,852 43,778,914 1, % Purchased Services 24,472,212 1,029 28,186,954 1,189 28,268,521 1, % Supplies, Materials & Other 4,638, ,424, ,232, % Total Expenditures $ 196,709,278 $ 8,274 $ 206,056,816 $ 8,691 $ 203,140,893 $ 8, % Total Adjusted Marginal Cost Pupil Unit (AMCPU) 23,774 23,709 23,669 FY 2014 Adopted Budget % 21.5% Salaries Benefits 13.9% Purchased Services Supplies, Materials & Other 2.6% June 18, 2013

60 GENERAL/TRANSPORTATION FUND EXPENDITURE SUMMARY BY PROGRAM Expenditures (by program) FY 2012 Actual FY 2012 Expenditures Per AMCPU FY 2013 Revised Budget FY 2013 Expenditures Per AMCPU FY 2014 Adopted Budget FY 2014 Expenditures Per AMCPU 60 Administration $ 9,749,809 $ 410 $ 8,156,335 $ 344 $ 7,584,734 $ 320 District Support Services 5,038, ,196, ,798, Elementary and Secondary Regular Instruction 98,478,131 4,142 76,593,497 3,231 73,097,368 3,088 Vocational Education Instruction 3,209, ,992, ,008, Special Education Instruction 39,868,130 1,677 33,790,421 1,425 33,769,971 1,427 Instructional Support Services 6,556, ,457, ,786, Pupil Support Services 4,634, ,732, ,746, Transportation 15,521, ,919, ,421, Sites and Buildings 13,252, ,682, ,435, Fiscal and Other Fixed Cost Programs 338, * 40,536,157 1,710 * 41,492,407 1,753 Total Expenditures $ 196,647,737 $ 8,271 $ 206,056,816 $ 8,692 $ 203,140,893 $ 8,582 Total Adjusted Marginal Cost Pupil Unit (AMCPU) 23,774 23,709 23,669 * Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

61 FY 2014 Total General/Transportation Fund Expenditures by Program = $203,140, Administration - 3.7% * Administration includes the cost for general, instructional and school site administration - school board, superintendent, principals and directors of instructional areas. District Support Services - 2.4% * District Support Services includes the cost for general administrative support - administration, community relations, business services, human resources and information systems. Elementary and Secondary Regular Instruction % * Elementary and Secondary Regular Instruction includes the cost related with the teaching of students, the interaction between teachers and students in the classroom and co-curricular activities at the kindergarten, elementary and secondary levels. 36.0% 2.4% 3.7% 16.6% Fiscal and Other Fixed Cost Programs % ** Fiscal and Other Fixed Cost Programs includes the cost for fiscal and fixed cost activities. Employee benefits are centrally budgeted. At yearend, employees budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. 20.5% 3.8% 5.6% 8.6% 1.8% Sites and Buildings - 5.6% * Sites and Buildings includes the cost of facilities - operations, utilities, repair, remodeling, maintenance, and grounds of the school district. Transportation - 8.6% Transportation includes cost related to transporting of students to and from school or between schools for instructional purposes. Vocational Education Instruction - 1.0% * Vocational Education Instruction includes the cost related to career and technical educational courses for students future employability. 1.0% Special Education Instruction % * Special Education Instruction includes the cost for activities providing learning experiences for students with disabilities, birth through age 21. * Excludes employee benefits ** Includes employee benefits which are mainly attributed to elementary and secondary regular instruction Pupil Support Services - 1.8% * Pupil Support Services includes the cost of support services provided to students - counseling, health services, and enrollment center. Instructional Support Services - 3.8% * Instructional Support Services includes the cost of activities for assisting the instructional staff with the content and process of providing learning experiences for students - curriculum development, research assessment and accountability, technology, and staff development. June 18, 2013

62 FY 2014 Total General/Transportation Fund Expenditures = $203,140,893 Instructional vs. Non-Instructional Instructional Expenditures % Instructional Expenditures include the following programs: elementary and secondary regular instruction, vocational education instruction, special education, instructional support services, pupil support services and fiscal and other fixed cost programs. $161,900, $41,240,309 Non-Instructional Expenditures % Non-Instructional Expenditures include the following programs: administration, district support services, transportation and sites and buildings. June 18, 2013

63 FOOD SERVICE FUND Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 63

64 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

65 FOOD SERVICE FUND EXPENDITURE SUMMARY BY OBJECT Expenditures (by object) FY 2012 Actual FY 2013 Revised Budget FY 2014 Adopted Budget Budget Increase (Decrease) Budget Percent Change Salaries $ 3,728,250 $ 3,783,907 $ 3,788,377 $ 4, % Benefits 1,043,394 1,062,329 1,086,418 24, % Purchased Services 859, , ,652 93, % Supplies, Materials & Other 5,075,784 5,459,562 5,546,700 87, % Total Expenditures $ 10,706,589 $ 11,173,544 $ 11,383,147 $ 209, % FY 2014 Adopted Budget % 48.7% 9.5% 8.4% Salaries Benefits Purchased Services Supplies, Materials & Other June 18, 2013

66 COMMUNITY SERVICE FUND Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 66

67 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

68 COMMUNITY SERVICE FUND EXPENDITURE SUMMARY BY OBJECT Expenditures (by object) FY 2012 Actual FY 2013 Revised Budget FY 2014 Adopted Budget Budget Increase (Decrease) Budget Percent Change Salaries $ 8,953,233 $ 7,976,874 $ 7,993,160 $ 16, % Benefits 2,142,204 2,125,212 2,247, , % Purchased Services 1,636,492 1,256,417 1,362, , % Supplies, Materials & Other 1,372,722 1,171,105 1,209,650 38, % Total Expenditures $ 14,104,651 $ 12,529,608 $ 12,811,988 $ 282, % FY 2014 Adopted Budget % 17.5% Salaries Benefits 9.3% 10.6% Purchased Services Supplies, Materials & Other June 18, 2013

69 CAPITAL EXPENDITURE FUND Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 69

70 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

71 CAPITAL/LAND PROCEEDS EXPENDITURE FUND SUMMARY BY OBJECT Expenditures (by object) FY 2012 Actual FY 2013 Revised Budget FY 2014 Adopted Budget Budget Increase (Decrease) Budget Percent Change Facilities/Equipment $ 9,573,847 $ 8,712,242 $ 8,905,046 $ 192, % Health & Safety 1,329, ,011 1,190, , % Total Expenditures $ 10,903,454 $ 9,661,253 $ 10,095,046 $ 433, % FY 2014 Adopted Budget % Facilities/Equipment Health & Safety 11.8% June 18, 2013

72 ISD 279 Operations Capital Budget FY 2014 Department of Leadership Teaching and Learning (DLTL) Instructional and Information Technology Team (I2T2) Human and Administrative Resources Team (HART) Curriculum $ 1,329,089 Tech/Media Software $ 10,000 ADA Expenses $ 30,000 Equip New $ 25,358 Rplc Equipment 348,038 Equipment /Lease 949,855 Facilities Repair 190,000 Staff 99,048 Text Book Rplc 85,000 License Fees 580,000 City Assessments 15,000 Leases 155,000 Staff 434,509 Cust/Maint Equip. Replace 150,000 Staff 102,847 Rental Equipment 436,000 Sys Equip Contingency Repl. 20,845 Activities Equipment 55,000 Media Print Materials 110,000 Sys Equip Contingency New 20,845 Student Serv Equipment 3,710 Self Insure Equip. Replace 15, Equipment 2,000 H/R Equipment 1,000 Admin/Whs/Purch Equip. Repl. 41,810 Community Engagement $ 2,078,684 $ 2,520,364 $ 486,500 $ 124, Health & Safety Levy Lease Levy Physical Hazards $ 110,000 Activities Facl. Lease $ 195,093 Other Hazards $ 50,000 Timberland 172,902 Environmental Mgmt $ 375,000 Dane Technologies 162,250 Fire Safety $ 540,000 Interm ,258,686 Asbestos $ 120,000 $ 1,195,000 $ 1,788,931 $ $ $ $ 5,209,954 1,195,000 1,788,931 8,193,885

73 ISD 279 Operating Capital Budget DLTL Division Detail 73 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET INSTRUCTIONAL SUPP SERV DIR CURR / ED STANDARDS EQUIPMENT 5,000 INSTRUCT MUSIC COORD, MUSIC CONTR REP - EQUIP 30,000 INSTRUCT MUSIC COORD, MUSIC EQUIPMENT 55,000 CAREER AND TECHNICAL ED COORD CAREER AND TECH TEXTBOOKS 15,000 CAREER AND TECHNICAL ED COORD CAREER AND TECH EQUIPMENT 10,000 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS LICENSED SUPPORT 84,571 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS FICA/MEDICARE 6,470 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS TRA 5,495 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS EMPLOYEE INSURANCE 2,032 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS LIFE 114 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS DENTAL 348 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS DISABILITY INCOME 318 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS SHELTERED ANNUITIES 1,500 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS EMPLOYER HLTH REIM 1,436 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS WORKERS COMP 383 CURRICULUM DEVELOPMENT DIR CURR / ED STANDARDS UNEMPLOYMENT 180 GENERAL WOODLAND EQUIPMENT 6,877 GENERAL EDINBROOK EQUIPMENT 6,025 GENERAL BIRCH GROVE EQUIPMENT 3,915 GENERAL CRESTVIEW EQUIPMENT 3,207 GENERAL WEAVER LAKE EQUIPMENT 5,540 GENERAL FAIR OAKS EQUIPMENT 3,276 GENERAL GARDEN CITY EQUIPMENT 3,215 GENERAL PALMER LAKE EQUIPMENT 4,760 GENERAL PARK BROOK EQUIPMENT 2,404 GENERAL ZANEWOOD EQUIPMENT 4,061 GENERAL CEDAR ISLAND EQUIPMENT 3,747

74 ISD 279 Operating Capital Budget DLTL Division Detail 74 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET GENERAL RUSH CREEK EQUIPMENT 6,586 GENERAL ELM CREEK EQUIPMENT 4,170 GENERAL RICE CREEK EQUIPMENT 5,438 GENERAL BASSWOOD EQUIPMENT 6,946 GENERAL FERNBROOK EQUIPMENT 5,921 GENERAL WOODLAND EQUIPMENT 3,651 INSTRUCTIONAL ADMIN DIR CURR / ED STANDARDS EQUIPMENT LEASED 6,500 TEXT BOOK REPLACEMENT DIR CURR / ED STANDARDS TEXTBOOKS 85,000 GENERAL DIR CURR / ED STANDARDS EQUIPMENT LEASED 85,500 GENERAL DIR CURR / ED STANDARDS TEXTBOOKS 429,089 GENERAL DIR CURR / ED STANDARDS COMPUTER SOFTWARE 100,000 GENERAL DIR CURR / ED STANDARDS REPLACEMENT EQUIPMENT 120,000 GENERAL DIR CURR / ED STANDARDS EQUIPMENT LEASED 63,000 GENERAL DIR CURR / ED STANDARDS EQUIPMENT 800,000 ATHLETICS-BOYS&GIRLS PRINCIPAL ON SPECIAL ASSIGNMENT EQUIPMENT 25,000 GENERAL OSH EQUIPMENT 10,346 GENERAL BJH EQUIPMENT 6,611 GENERAL OJH EQUIPMENT 7,990 GENERAL NVJH EQUIPMENT 4,990 GENERAL PCSH EQUIPMENT 9,550 GENERAL MGSH EQUIPMENT 11,622 GENERAL MGJH EQUIPMENT 11,178 GENERAL ALC EQUIPMENT 1,012 GENERAL ACHIEVE EQUIPMENT 3,098 GENERAL OSTC EQUIPMENT 612 $ 2,078,684

75 ISD 279 Operating Capital Budget Instructional & Informational Technology Division Detail 75 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET INFO SYSTEMS COORD INFO SYSTEMS RENTAL EQUIPMENT 435,000 INFO SYSTEMS COORD INFO SYSTEMS REPLACEMENT EQUIPMENT 7,000 INFO SYSTEMS COORD INFO SYSTEMS DUES & MEMBERSHIPS 57,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER LICENSED SUPPORT 81,216 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER NON INSTRUCTIONAL SUPPORT 235,930 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER FICA/MEDICARE 24,300 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER PERA 16,900 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER TRA 5,227 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER EMPLOYEE INSURANCE 48,284 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER LIFE 451 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER DENTAL 1,914 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER DISABILITY INCOME 1,259 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER SHELTERED ANNUITIE 3,750 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER EMPLOYER HLTH REIMB 12,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER WORKERS COMPENSATION 3,278 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER RENTAL EQUIPMENT 1,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER COMPUTER SOFTWARE 10,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER LIBRARY BKS 110,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER REPLACEMENT EQUIPMENT 6,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER EQUIPMENT-LEASED 500 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER EQUIPMENT 10,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER TECHNOLOGY EQUIPMENT 40,000 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER CAPITAL LEASE 879,243 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER INTEREST ON CAPITAL LEASE 7,112 NETWORK SUPPORT CHIEF TECHNOLOGY OFFICER DUES & MEMBERSHIPS 523,000 $ 2,520,364

76 ISD 279 Operating Capital Budget HART Division Detail 76 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET CUSTODIAL COORD, CUST REPLACEMENT EQUIPMENT 75,000 MAINTENANCE COORD, MAINT REPLACEMENT EQUIPMENT 75,000 ERGONOMICS DIR, FACILITIES & TRANSP EQUIPMENT 2,000 FACILITIES DIR, FACILITIES & TRANSP SITE ASSESSMENTS 15,000 FACILITIES DIR, FACILITIES & TRANSP BUILDING IMPROVEMENTS 160,000 FACILITIES DIR, FACILITIES & TRANSP REPLACEMENT EQUIPMENT 20,000 FACILITIES DIR, FACILITIES & TRANSP EQUIPMENT 10,000 ADMIN ASST SUPT ADMIN REPLACEMENT EQUIPMENT 20,845 ADMIN ASST SUPT ADMIN EQUIPMENT 20,845 ADMIN ASST SUPT ADMIN SELF INSURANCE 15,000 BUSINESS SERVICES DIR, BUSINESS SERVICES REPLACEMENT EQUIPMENT 8,000 BUSINESS SERVICES DIR, BUSINESS SERVICES EQUIPMENT 2,000 PURCHASING COORD, PURCHASING REPLACEMENT EQUIPMENT 500 WAREHOUSE COORD, PURCHASING REPLACEMENT EQUIPMENT 31,310 HR DIRECTOR, HR EQUIPMENT 1,000 ADA COORD, HEALTH SAFETY PROF & TECHNICAL 4,000 ADA COORD, HEALTH SAFETY GENERAL SUPPLIES 1,000 ADA COORD, HEALTH SAFETY SITE IMPROVEMENTS 15,000 ADA COORD, HEALTH SAFETY BUILDING IMPROVEMENTS 5,000 ADA COORD, HEALTH SAFETY EQUIPMENT 5,000 $ 486,500

77 ISD 279 Operating Capital Budget Community Engagement Division Detail 77 FY 2014 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION BUDGET SUPERINTENDENT SUPERINTENDENT EQUIPMENT 18,000 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS NON INSTUCTIONAL SUPPORT 74,270 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS FICA/MEDICARE 5,680 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS PERA 5,385 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS EMPLOYEE INSURANCE 6,977 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS LIFE 106 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS DENTAL 348 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS DISABILITY INCOME 296 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS RSP 880 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS WORKERS COMPENSATI 767 COMMUNITY RELATIONS DIR, COMMUNITY RELATIONS EQUIPMENT 2,358 PRODUCTIONS DIR, COMMUNITY RELATIONS EQUIPMENT 5,000 $ 120,067

78 ISD 279 Operating Capital Budget Health/Safety Levy Detail 78 PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET HEALTH & SAFETY COORD, HEALTH SAFETY PROF & TECHNICAL 5,000 HEALTH & SAFETY COORD, HEALTH SAFETY GENERAL SUPPLIES 20,000 HEALTH & SAFETY COORD, HEALTH SAFETY SITE IMPROVEMENTS 5,000 HEALTH & SAFETY COORD, HEALTH SAFETY BUILDING IMPROVEMENTS 75,000 HEALTH & SAFETY COORD, HEALTH SAFETY EQUIPMENT 5,000 HEALTH & SAFETY COORD, HEALTH SAFETY CONSULTING FEES/FE 40,000 HEALTH & SAFETY COORD, HEALTH SAFETY GENERAL SUPPLIES 5,000 HEALTH & SAFETY COORD, HEALTH SAFETY BUILDING IMPROVEMENTS 5,000 HEALTH & SAFETY COORD, HEALTH SAFETY GENERAL ADMINISTRATORS 96,205 HEALTH & SAFETY COORD, HEALTH SAFETY CONTRACT ASSIGNMEN 2,000 HEALTH & SAFETY COORD, HEALTH SAFETY NON INSTRUCTIONAL SUPPORT 90,195 HEALTH & SAFETY COORD, HEALTH SAFETY OTHER SALARY PAYME 14,000 HEALTH & SAFETY COORD, HEALTH SAFETY FICA/MEDICARE 16,035 HEALTH & SAFETY COORD, HEALTH SAFETY PERA 15,200 HEALTH & SAFETY COORD, HEALTH SAFETY TRA 1,000 HEALTH & SAFETY COORD, HEALTH SAFETY EMPLOYEE INSURANCE 15,004 HEALTH & SAFETY COORD, HEALTH SAFETY LIFE 266 HEALTH & SAFETY COORD, HEALTH SAFETY DENTAL 696 HEALTH & SAFETY COORD, HEALTH SAFETY DISABILITY INCOME 746 HEALTH & SAFETY COORD, HEALTH SAFETY RSP 880 HEALTH & SAFETY COORD, HEALTH SAFETY EMPLOYER HLTH REIMB 1,789 HEALTH & SAFETY COORD, HEALTH SAFETY WORKERS COMPENSATION 907 HEALTH & SAFETY COORD, HEALTH SAFETY CONSULTING FEES/FE 63,997 HEALTH & SAFETY COORD, HEALTH SAFETY TELEPHONE/COMMUNICATION 1,080 HEALTH & SAFETY COORD, HEALTH SAFETY BUSINESS TRAVEL 2,000 HEALTH & SAFETY COORD, HEALTH SAFETY STAFF DEVELOPMENT TRAVEL 2,000 HEALTH & SAFETY COORD, HEALTH SAFETY OUT OF STATE TRAVE 1,000 HEALTH & SAFETY COORD, HEALTH SAFETY GENERAL SUPPLIES 25,000 HEALTH & SAFETY COORD, HEALTH SAFETY EQUIPMENT 25,000 HEALTH & SAFETY COORD, HEALTH SAFETY CONSULTING FEES/FE 20,000 HEALTH & SAFETY COORD, HEALTH SAFETY CONTR REP - BLDG 100,000 HEALTH & SAFETY COORD, HEALTH SAFETY CONSULTING FEES/FE 190,000 HEALTH & SAFETY COORD, HEALTH SAFETY GENERAL SUPPLIES 10,000 HEALTH & SAFETY COORD, HEALTH SAFETY BUILDING IMPROVEMENTS 320,000 HEALTH & SAFETY COORD, HEALTH SAFETY EQUIPMENT 20,000 $ 1,195,000

79 ISD 279 Lease Levy Detail PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 35,000 ATHLETIC FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 8,000 ATHLETIC FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 11,000 ATHLETIC FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 4,400 ATHLETIC FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 40,500 FACILITIES DIR, FACILITIES & TRANSP RENTAL LAND & BLDGS 431,345 FACILITIES DIR, FACILITIES & TRANSP PMTS TO MN SCHOOL 250,000 FACILITIES DIR, FACILITIES & TRANSP PMTS TO MN SCHOOL 1,008,686 $ 1,788,931 79

80 ISD 279 Operating Capital Budget Land Proceeds Detail PROGRAM BUDGET MANAGER ACCT NUMBER DESCRIPTION FY 2014 BUDGET LAND PROCEEDS DIR, FACILITIES & TRANSP SITE IMPROVEMENTS 218,000 LAND PROCEEDS DIR, FACILITIES & TRANSP BUILDING IMPROVEMENTS 1,687,500 $ 1,905,500 80

81 81 Facilities Improvements Landsales FY / Description Facility Est. Cost Security Entrance OALC $ 50,000 Art Room Remodel OSH $ 25,000 Auditorium Scene Shop Storage System OSH $ 25,000 Dark Room Renovation OSH $ 25,000 Baseball/Softball field lighting OSH $ 50,000 Auditorium Sound System MGJH $ 15,000 Auditorium Sound System Replacement MGSH $ 15,000 Instrument Storage NVJH $ 35,000 Instrument Storage OSH $ 40,000 Music Suites Sound Abatement, Music Department PCSH $ 40,000 Text Book Storage System, English Department OSH $ 35,000 Front Office Reconfigure ARB $ 8,000 Primex Clock System AEC $ 5,000 Key Card access (2 doors) BW $ 5,000 Landscaping Elementary $ 50,000 Landscaping Secondary $ 50,000 Irrigation for Planters WVR $ 1,000 Move and Update Auditorium Exterior Sign OSH $ 2,500 Playground Canopy WL $ 10,000 Monument Retro Fit BW, OAK, RC, WVR, FB, WD Elementary $ 102,000 Telephone system system $ 500,000 Generators system $ 250,000 Lockset replacement system $ 50,000 Irrigation for West side (Zane) NVJH $ 5,000 Door Replacement 2nd Floor NVJH $ 12,000 Remodel Achieve $ 500,000 Total $ 1,905,500

82 82 Alt. Facilities Levy Projects FY2014 Description Facility crs Est. Cost Auditorium Stage Light Fixtures OJH $ 2,500 Auditorium Stage Rigging Upgrade and Repair MGJH $ 5,000 Counter top replace Café and Lounge GC $ 1,500 Counter Top/Fixtures, Classrooms CV $ 15,000 Counter Top/Fixtures, Classrooms FO $ 15,000 Counter Top/Fixtures, Staff Lounge BW $ 1,000 Exterior Wall Rehabilitation EB $ 221,000 Flooring Replacement, Gym RC $ 75,000 Ceiling/Light Fixture Gym & Café CI $ 5,000 Paging System GC $ 1,500 Paging System OSH $ 1,500 Paving Rehab NVJH $ 92,000 Paving Rehab OSH $ 143,000 Paving Rehab Concrete Pillar and Side Walk Repair (Front Entrance) EC $ 15,000 Paving Rehab Main Entrance Concrete MGJH $ 8,000 Paving Rehab North Lot and Drive RL $ 77,000 Paving Rehab Repair Tennis Court Cracks MGSH $ 5,000 Paving Rehab Sidewalk repairs BW $ 10,000 Paving Rehab Sidewalk repairs WVR $ 4,000 Paving Rehab Sidewalk Replacement CI $ 5,000 Paving Rehab Sidewalk Replacement RC $ 8,000 Paving Rehab Sidewalk Replacement WD $ 4,000 Paving Rehab Sidewalk to Entrance D MGSH $ 10,000 Paving Rehab Sidewalk to Parking lot CV $ 4,000 Paving Rehab South West Lot OAK $ 130,000 Paving Rehab West Side Walk (Bus Drop Area) MGJH $ 10,000 Plumbing Replacement PCSH $ 75,000 Plumbing Renovate Bathrooms in SPED and Stu. Serv. Offices OSH $ 26,500 Plumbing Restroom/Locker Rm Fixtures NVJH $ 15,000 Roof Replacement OAK $ 1,311,584 Roof Replacement OSH $ 750,000 Roof Wet Insulation Replacement Dist. Wide $ 50,000 Alt. Facilities Levy Total $ 3,097,084 Funding Source $ 2,631,084 Pay 13 / FY14 AF Levy $ 466,000 FY12 LevyBal. Fwd $ 3,097,084

83 83 Alt. Facilities Bond Projects FY2014 Description Facility crs Est. Cost Ceiling/Lights OSH $ 75,000 Enlarge Door from Rec to Café GC $ 2,500 Flooring - CRC Carpet OSH $ 8,000 Flooring Replace 5 classrooms/media CV $ 24,500 Flooring Replacement 16 Rms OSH $ 85,000 Flooring Replacement 3rd Floor PCSH $ 85,000 Flooring Replacement Café PCSH $ 25,000 Locker Replacement, Boys PE Locker Replacement OJH $ 50,000 Mechanical A/C Units Replacement EB $ 655,000 Mechanical Boiler Replacement OE $ 600,000 Mechanical Boiler Replacement WL $ 575,000 Mechanical Replace AC Unit for Office/FACS MGSH $ 90,000 Mechanical Vent. Sys Balance/Repair WVR $ 25,000 Auditorium Stage Rigging Upgrade and Repair MGSH $ 5,000 Auditorium Stage Rigging Upgrade and Repair OSH $ 20,000 Light Pole Replacement Dist. Wide $ 20,000 Locker Replacement, Boys PE Locker Replacement PCSH $ 50,000 Paint Gym CV $ 15,000 Paint Rehabilitation CV $ 20,000 Paint Rehabilitation EC $ 30,000 Paint Rehabilitation OSH $ 120,000 Roll Door Replacement in Kitchen PB $ 5,000 Roof Replacement OJH $ 474,630 Alt. Facilities Bond Total $ 3,059,630 Funding Source $ 2,385,000 AF Bond 6/2011 $ 674,630 FY12 Bond Bal. Fwd $ 3,059,630

84 84 FY2016 thru FY2019 Alt. Facilities Levy/Bond Description Facility Fund Annual Est. MGJH,NVJH,MGSH, Roof Repair BW Levy/Bond $ 2,200,000 Pavement Rehabilitation OSH,PCSH,MGJH, Levy/Bond $ 1,000,000 Concrete Walk Replacement PB,MGSH,MGJH,CV, BG,FO Levy/Bond $ 75,000 Exterior Wall Rehabilitation FB,MGJH,OJH,FO Levy/Bond $ 1,350,000 Water Heater/Softner Replacement OJH,GC,ARB,NVJH, PB Levy/Bond $ 250,000 Flooring Replacement MGSH,MGJH,WD Levy/Bond $ 200,000 Ceiling and Light Replacement OSH,PCSH,BJH Levy/Bond $ 450,000 Boiler Replacement OJH,GC,ARB,NVJH, PB Levy/Bond $ 600,000 Steam Trap Replacement OJH,GC,NVJH, PB Levy/Bond $ 100,000 Paint Restoration OSH,RL,EC,RC,BJH Levy/Bond $ 180,000 Plumbing/ Steam traps FO,BG,ZW,CV,OJH Levy/Bond $ 200,000 A/C Unit Replacement BW,RC Levy/Bond $ 100,000 Exhaust Fan Rpl. & Duct Cleaning OJH,OSH,PCSH,BJH, NVJH Levy/Bond $ 50,000 $ 6,755,000 (See Ehlers financial plan for annual funding source split between levy and Bond) Annual Est. for FY 2020 and FY 2021 Alt. Facilities Levy Description Facility Fund Roof Repair CV,PCSH,BJH,ARB Levy $ 2,000,000 Pavement Rehabilitation MGSHtrack,FB,PL,ICE, PCSHtrack,CI, Levy $ 1,000,000 Mechanical Equipment Replace OSH,OJH Levy $ 200,000 Exterior Wall Rehabilitation ESC,OJH,BJH,PCSH Levy $ 1,000,000 Recommissioning OSH,OJH Levy $ 100,000 Plumbing/ Steam traps CI,NVJH $ 100,000 Painting EB,FB,MGJH,NVJH Levy $ 150,000 $ 4,550,000 Annual Est. FY 2022 Alt. Facilities Levy Description Facility Fund Roof Repair CV,OALC, OSH, FO Levy $ 2,000,000 Pavement Rehabilitation PB,ZW,ARB, Levy $ 1,000,000 Mechanical Equipment Replace MGJH Levy $ 200,000 Exterior Wall Rehabilitation MGSH Levy $ 1,000,000 Recommissioning OSH,OJH Levy $ 200,000 Plumbing/ Steam traps CI,PL,OAK Levy $ 136,500 Painting BG,PL,FO Levy $ 150,000 $ 4,686,500 Annual Est. FY 2023 Alt. Facilities Levy Description Facility Fund Roof Repair CV,OALC, OSH, FO Levy $ 2,000,000 Pavement Rehabilitation EC,RC,BG,CI,FO,WD Levy $ 1,000,000 Mechanical Equipment Replace WVR, OAK Levy $ 200,000

85 85 Exterior Wall Rehabilitation MGSH Levy $ 1,000,000 Recommissioning GC,FO,PB,PL Levy $ 200,000 Plumbing WVR, FB,EB $ 277,095 Painting GC,ZW,CV,CI Levy $ 150,000 $ 4,827,095 FY 2014 $ 6,156,714 FY 2015 $ 7,178,000 FY 2016 $ 6,755,000 FY 2017 $ 6,755,000 FY 2018 $ 6,755,000 FY 2019 $ 6,755,000 FY 2020 $ 4,550,000 FY 2021 $ 4,550,000 FY 2022 $ 4,686,500 FY 2023 $ 4,827,095 Total $ 73,458,999

86 DEBT SERVICE FUND Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 86

87 REVENUE, EXPENDITURE, AND FUND BALANCE PROJECTIONS General/ Transportation Fund Food Service Fund Community Service Fund Capital/Land Proceeds Fund Debt Service/ OPEB Debt Fund Total Total Fund Balance, June 30, 2012 * $ 46,184,368 $ 3,106,891 $ 2,432,297 $ 4,264,414 $ 3,753,106 $ 59,741,076 FY 2013 Budgeted Revenue 198,492,881 10,743,402 11,954,344 11,285,055 20,796, ,271,729 FY 2013 Budgeted Expenditures 206,056,816 11,173,544 12,529,608 9,661,253 20,541, ,962,340 Projected Fund Balance, June 30, ,620,433 2,676,749 1,857,033 5,888,216 4,008,034 53,050,465 Revenue (by source) Local Property Taxes 41,400,488-1,904,477-20,704,380 64,009,345 Investment Earnings and Other 2,270,990 4,756,828 9,037,433 2,625,786 10,500 18,701,537 State Sources 157,649, ,242 1,052,747 8,282, ,414,744 Federal Sources - 5,528, ,528,535 Total Revenue 201,320,803 10,715,605 11,994,657 10,908,216 20,714, ,654,161 Expenditures (by program) Administration 7,584, ,584,734 District Support Services 4,798, ,798,831 Elementary and Secondary Regular Instruction 73,097, ,097,368 Vocational Education Instruction 2,008, ,008,360 Special Education Instruction 33,769, ,769,971 Instructional Support Services 7,786, ,786,090 Pupil Support Services 3,746, ,746,388 Transportation 17,421, ,421,148 Sites and Buildings 11,435, ,435,596 Fiscal and Other Fixed Cost Programs ** 41,492, ,492,407 Food Service - 11,383, ,383,147 Community Service ,811, ,811,988 Capital Outlay ,095,046-10,095,046 Debt Service ,713,865 20,713,865 Total Expenditures 203,140,893 11,383,147 12,811,988 10,095,046 20,713, ,144, Estimated Ending Fund Balance, June 30, 2014 $ 36,800,343 $ 2,009,207 $ 1,039,702 $ 6,701,386 $ 4,009,049 $ 50,559,687 * Total fund balance, June 30, 2012 for the General/Transportation Fund does not include special projects carryover from previous years. ** Employee benefits are centrally budgeted. At year-end, employee benefits budget and actual amounts are allocated to the appropriate program area, since the District does not use benefit accounting. June 18, 2013

88 INFORMATIONAL SECTION Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 88

89 FY 2014 BUDGET June 18, 2013 Page 1 TO: FROM: Board Members and Superintendent Maguire Kim Riesgraf, Assistant Superintendent of Administration and Kelly Benusa, Director of Business Services DATE: June 18, 2013 RE: FISCAL YEAR 2014 BUDGET The purpose of this memo is to recommend the acceptance of the proposed budget for Fiscal Year 2014 (FY 2014). We have collected and processed all of the revenue and expenditure data for the budget; therefore, this portion of the budget is based on calculated numbers instead of percentage estimates. The proposed budget is introduced by comparing the original projection sheet that was used in the budget development process to the proposed budget. Attached are copies of the original projection sheet and the proposed budget. The proposed budget comparison shows estimates for revenue at the top of the Fiscal Year (FY) 2015 Budget Planning Scenario Base Financial Forecast. The estimate is that we will receive $2.8 million more revenue for Fiscal Year 2014 than the February 19, 2013 estimate for FY 2014, or an additional increase of 1.42%. General education aid is anticipated to increase by 1.5% or $1.9 million for FY Other Post-Employment Benefits (OPEB) pay as you go levy is attributing $600,000 of new revenue. Tax abatements are increasing almost $503,000. The operating referendum allowance for FY 2013 is increasing nearly $198,000, as a result of applying the voter approved inflation factor to the existing referendum authority. Third party billing revenue is anticipated to increase by $236,000 due to program growth. These increases are being partially offset by special education revenue decreasing $710,000, due mainly to prior year adjustments for FY 2012 that affect FY 2013 revenues. The estimated FY 2014 expenditure budget is shown in the center of the Fiscal Year (FY) 2015 Budget Planning Scenario Base Financial Forecast 89

90 FY 2014 BUDGET June 18, 2013 Page 2 and in the table below. The estimated expenditure budget is almost $4.8 million less than was projected on February 19, 2013 based on an adjusted 3.25% (from 3.75%) expenditure planning assumption. Included in the budget is the $574,509 of staffing reduction to align with enrollment and the $2.5 million reduction in programs and services in order to preserve fund balance. Below is an explanation of the differences by category of expenditure for a total reduction of $3,074,509. Salaries - decrease of ($7,891,583) Increase of Decrease of Reduce budget capacity for FY 2014 budget $(2,090,543) reductions One-time stipend in the teacher contract for FY $(1,133,327) 2013 only Medical loss ratio (MLR) rebate for FY 2013 only $ (307,308) Settlements < 3.25% (includes allocation/attrition) $(4,360,405) total FTE reductions taken in salary for adopted budget and realigned with benefits at mid-year revision for FY 2014 Benefits - decrease of ($513,010) Medical insurance increase of 6% from HealthPartners penalty due to five employee groups voting to move to a non-district $1,641,974 administered plan Teacher retiree payout of $17,000 for 60 FTEs for $(1,020,000) FY 2013 only TRA rate increase from 6.5% to 7.0%, effective July 1, 2013 $ 780,390 Employer portion of long-term disability and life insurance premium reduction based on renewal of $ (159,064) both plans for FY 2014 Workers compensation estimated 15% rate increase due to industry needs rather than a direct $ 126,085 correlation to claims reported or paid Other items combined < 3.25% (PERA, Unemployment, Special Funded Projects benefit chargeback, and other benefits) total FTE reductions taken in salary for adopted budget and $(1,882,395) realigned with benefits at mid-year revision for FY 2014 Purchased Services - decrease of $(822,179) Reduce budget capacity for FY 2014 budget reductions $ (823,500) Transportation contract award increased 2.49% for FY 2014 $ 584,417 Tuition projected increase to align tuition costs with trend $ 500,000 Other Purchased Services < 3.25% - purchased services remained at 0% for FY 2014 budgeting $ (1,083,096) 90

91 FY 2014 BUDGET June 18, 2013 Page 3 Other Services - decrease of $(385,997) Reduce budget capacity for FY 2014 budget reductions Federal indirect chargeback rate increased from 1.6% in FY 2013 to 4% for FY 2014 Other Services < 3.25% - other services remained at 0% for FY 2014 budgeting $ (160,466) $ (157,016) $ (68,515) The net effect of the revenue and expenditure budget variance on the General Operating/Transportation Fund budgets results in an anticipated operating deficit of ($1.8) million for FY The impact of this budget is a projected fund balance of $36.8 million in FY Our projection shows an estimated ending fund balance for FY 2014 as a percent of expenditures at 18.12% or 9.4 weeks of operations. Therefore, applying the 5% fund balance policy the District would be within the desired parameters for FY We are making the following recommendation regarding the FY 2014 budget: 1. Accept the Proposed Budget We have applied a tactic to reduce the expenditure trend to 3.25%. However, for planning purposes, a 3.75% expenditure budget assumption should be used for future years until a five year trend indicates an adjustment to this assumption. 91

92 ISD Osseo Area School FY 2015 Budget Planning Scenario - Base Financial Forecast Revised Budget 2013 Adopted Budget 2014 Proj 2015 Proj 2016 Proj 2017 Proj 2018 Baseline Actual 2010 Actual 2011 Actual 2012 Revenues $185,308,981 $197,252,136 $195,774,986 $198,492,881 $201,320,803 * $201,629,113 $204,280,812 $205,002,099 $205,342,594 Expenditures $176,880,009 $189,458,717 $196,709,278 $206,056,816 $203,140,893 $210,758,676 $214,228,170 $217,623,323 $220,560,843 Baseline operating balance (pre-tactic) $38,620,433 $36,800,343 $27,670,780 $24,997,114 $16,846,642 $6,662,950 Tactics related to revenue Operating levy referendum revenue $0 Revenue assumption increase 1.5% $3,000,000 Other Tactics related to expenditures Cost containment - purchased services Operational reductions ($4,000,000) ($4,000,000) ($4,000,000) ($5,000,000) Enrollment alignment adjustment ($273,693) ($470,751) ($1,034,558) $137,176 Other - reduce trend to 3.25% 92 Baseline operating balance (post tactic) Fund Balance (beginning of year) $30,896,269 $39,325,241 $47,118,660 $46,184,368 $38,620,433 $36,800,343 $34,944,473 $29,467,865 $21,881,200 Fund Balance (end of year) $39,325,241 $47,118,660 $46,184,368 $38,620,433 $36,800,343 $34,944,473 $29,467,865 $21,881,200 $11,525,774 Change in fund balance $8,428,972 $7,793,419 ($934,292) ($7,563,935) ($1,820,090) ($1,855,870) ($5,476,607) ($7,586,666) ($10,355,425) Fund Balance Target Fund Balance as a % of Budgeted/Projected Expenditure 18.74% 18.12% 16.92% 14.05% 10.29% 5.34% 5% of Budgeted/Projected Expenditures Minimum $ 10,302,841 $ 10,157,045 $ 10,537,934 $ 10,711,409 $ 10,881,166 $ 11,028,042 * Baseline Revenue Assumption 0.00% For all years, except FY 2014 and FY % increase each year Expenditure Assumption 3.75% School Board Meeting 6/18/2013

93 ISD Osseo Area School FY 2015 Budget Planning Scenario - Includes Tactics Related to Revenue Financial Forecast Revised Budget 2013 Adopted Budget 2014 Proj 2015 Proj 2016 Proj 2017 Proj 2018 Baseline Actual 2010 Actual 2011 Actual 2012 Revenues $185,308,981 $197,252,136 $195,774,986 $198,492,881 $201,320,803 * $201,629,113 * $213,792,014 $214,688,025 $215,206,188 Expenditures $176,880,009 $189,458,717 $196,709,278 $206,056,816 $203,140,893 $210,758,676 $217,284,860 $223,817,473 $229,976,221 Baseline operating balance (pre-tactic) $38,620,433 $36,800,343 $27,670,780 $37,822,632 $30,250,360 $17,633,972 Tactics related to revenue Operating levy referendum revenue** $9,317,212 Revenue assumption increase 1.5% $3,000,000 Other Tactics related to expenditures Cost containment - purchased services $0 $0 $0 $0 Operational reductions $0 $0 $0 $0 Enrollment alignment adjustment ($273,693) ($470,751) ($1,034,558) $137,716 Other - reduce trend to 3.25% ($1,053,793) ($1,086,424) ($1,119,087) ($1,149,881) Baseline operating balance (post tactic) Fund Balance (beginning of year) $30,896,269 $39,325,241 $47,118,660 $46,184,368 $38,620,433 $36,800,343 $41,315,478 $39,379,807 $32,404,005 Fund Balance (end of year) $39,325,241 $47,118,660 $46,184,368 $38,620,433 $36,800,343 $41,315,478 $39,379,807 $32,404,005 $18,646,138 Change in fund balance $8,428,972 $7,793,419 ($934,292) ($7,563,935) ($1,820,090) $4,515,135 ($1,935,670) ($6,975,802) ($13,757,868) 93 Fund Balance Target Fund Balance as a % of Budgeted/Projected Expenditure 18.74% 18.12% 19.63% 18.16% 14.55% 8.10% 5% of Budgeted/Projected Expenditures Minimum $ 10,302,841 $ 10,157,045 $ 10,537,934 $ 10,864,243 $ 11,190,874 $ 11,498,811 * Baseline Revenue Assumption 0.00% For all years, except FY 2014 and FY % increase each year Expenditure Assumption 3.75% Note tactic to reduce trend beginning in FY 2014 **Revoke and Replace Levy Assumption School Board Meeting 6/18/2013

94 94 ADM Data (From June MARSS Report) * * * * * Kindergarten 1,605 1,521 1,429 1,544 1,479 1,559 Gr 1 1,653 1,683 1,576 1,543 1,664 1,581 Gr 2 1,665 1,598 1,640 1,591 1,568 1,625 Gr 3 1,547 1,620 1,578 1,628 1,609 1,530 Gr 4 1,652 1,534 1,585 1,603 1,640 1,570 Gr 5 1,616 1,626 1,498 1,602 1,592 1,581 Gr 6 1,622 1,614 1,548 1,481 1,561 1,528 Kind - Gr 6 11,360 11,196 10,854 10,992 11,113 10,974 - Grade 7 1,701 1,627 1,553 1,510 1,434 1,508 Grade 8 1,695 1,729 1,595 1,521 1,503 1,397 Grade 9 1,779 1,699 1,651 1,599 1,559 1,489 Gr 7 - Gr 9 5,175 5,055 4,799 4,630 4,496 4,394 - Grade 10 1,781 1,761 1,651 1,654 1,583 1,528 Grade 11 1,774 1,703 1,741 1,641 1,615 1,536 Grade 12 1,815 1,873 1,778 1,842 1,744 1,759 Gr 10 - Gr 12 5,370 5,337 5,170 5,137 4,942 4,823 - Kind - Gr 12 21,905 21,588 20,823 20,759 20,551 20,191 - Spring Enrollment Data (From Information Systems Prior June 1 Enrollment Report) Kindergarten 1,674 1,595 1,486 1,596 1,540 Gr 1 1,670 1,673 1,576 1,547 1,682 Gr 2 1,659 1,598 1,644 1,600 1,573 Gr 3 1,561 1,627 1,586 1,619 1,614 Gr 4 1,650 1,536 1,594 1,585 1,623 Gr 5 1,632 1,605 1,491 1,599 1,570 Gr 6 1,624 1,612 1,533 1,479 1,557 Kind - Gr 6 11,470 11,246 10,910 11,025 11, Grade 7 1,689 1,604 1,533 1,488 1,418 Grade 8 1,672 1,689 1,578 1,495 1,482 Grade 9 1,752 1,658 1,621 1,580 1,528 Gr 7 - Gr 9 5,113 4,951 4,732 4,563 4, Grade 10 1,730 1,710 1,633 1,637 1,549 Grade 11 1,729 1,666 1,696 1,612 1,563 Grade 12 1,745 1,790 1,678 1,757 1,661 Gr 10 - Gr 12 5,204 5,166 5,007 5,006 4, Kind - Gr 12 21,787 21,363 20,649 20,594 20, Change Kind - Gr (10,974) Gr 7 - Gr 9 (62) (104) (67) (67) (68) (4,394) Gr 10 - Gr 12 (166) (171) (163) (131) (169) (4,823) Kind - Gr 12 (118) (225) (174) (165) (191) (20,191) * = January Final ADM Summary Report

95 Student Enrollment Projections Tab School B-3 PreK Kdgn Total BW BG CI CV EB EC FO FB GC OAK PL PB RL RC WVR WD ZW Elem Total Total BJH MGJH NVJH OJH OALC J.H. Total Total MGSH OSH PCSH OALC S.H. Total District K-12 Total Check Setting 4 Spec Ed Total ACHIEVE OSTC Early Childhood Spec Ed B-3 PreK Total ECSE (ARB) ECSE (WL) ECSE Total Staffing March 1, 2013

96 Allocations Master Summary Licensed FTE rev tab 6 Funding Source BASE FTE (Classroom) Compensatory FTE (includes System Comp) Comm Engagemnt DLTL FTE Site Total BW BG CI CV EB EC FO FB GC OAK PL PB RL RC WVR WD ZW Campus (BIT, LMS, GE, PE/Music, CTE, DEI, EL, Title I) Student Serv (Spec Education & Support Services) Other Licensed Tch Support ELEM TOTALS BJH MGJH NVJH OJH MGSH OSH PCSH OALC SEC TOTALS ACHIEVE CBVAT ENR CTR ECSE OSTC PROGM TOTALS Fund Source TOTAL ATPPS allocations are not included in this document. - Title I allocated staff are included in the DLTLcolumn. - Title 1 dollars are converted to average FTE and are included in the 'Other' column. See title I allocation documents for staffing parameters. Match the column color above to guide the correct placement of FTE in the staffing database. 96 Staffing March 1, 2013

97 13-14 Allocations Administration rev Site Projected Enrollment Principal Assistant Principal BW BG CI CV EB EC FO FB GC OAK PL PB RL RC WVR WD ZW Campus Elem Total Admin Assist. Business Mgr. Site Coord. Activity Coord. Police Liaison Support BJH yes -1 MGJH yes -1 NVJH yes -1 OJH yes -1 Junior High Total MGSH yes -1 OSH yes -1 PCSH yes -2 OALC * yes-pc Senior High Total ACHIEVE 1.00 ECSE 1.00 OSTC 1.00 Special Education Site-Based Total 3.00 ECFE 1.00 ABE 1.00 Enroll Ctr 1.00 Community Engagement Site- Based Total 3.00 TOTALS New this year!! Administrative positions will be captured in the Salaried Teacher & Management Database. "Other"/Gray column These positions have been entered for you already. You will need to confirm the accuracy of these positions listed in the database. *Note: OALC receives business support from K-12 Operations Coordinator staff. Note: Police Liaison positions are contracted employees. These positions are not included in the staffing database because they are not district employees. 97 Staffing March 1, 2013

98 13-14 Allocations Administrative Support Staff 98 Site Projected Enrollment Resource Manager Elem School Secretary IV-A / 219 BW BG CI CV EB EC FO FB GC OAK PL PB RL RC WVR WD ZW Campus 1423 Elem Total Jr & Sr High Admin Secretary IV-B / 260 Jr. High Counseling Secretary II-A / 212 Sr. High Registrar IV-B / 260 Sr. High Activities Secrtary IV-A / 219 Site Secretary (admin discretion) II-A / 212 Site Secretary III-A / 212 Site Secretary III-B / 260 Site Secretary II-B / 260 BJH MGJH NVJH OJH Junior High Total MGSH OSH PCSH OALC Senior High Total ACHIEVE ECSE OSTC Special Education Site-Based Total ECFE 2.00 ABE 1.00 Enroll Ctr Community Engagement Site- Based Total TOTALS New this year!! Administrative support positions will be captured in the ESP / Hourly Staff Database. These positions are show above in gray shaded celss. Orange text indicates a change from previous year. These positions have been entered for you already. You will need to confirm the accuracy of these positions listed in the database. Staffing March 1, 2013

99 Allocation Basis & Parameters Educational Support Professional (ESP) Calculation of Available Hours 645 ESP hours were available for school year for K-12 distribution 8 ESP hours are being reduced for * 637 ESP Hours Available *A reserve is held back from the 637 hours prior to calculating distribution to sites. This allows additional hours to be allocated prior to the start of the school year where updated enrollment data dictates. The reserve is also used for emergency ESP needs throughout the school year. Distribution of Available Hours The ESP hours that are available are distributed to elementary and secondary according to projected enrollment. A distribution factor is determined by dividing the total number of hours available by the total K-12 projected enrollment and applying this factor to the total number of elementary students and the total number of secondary students. Example calculation below: If is the total number of students at elementary sites 9283 is the total number of students at secondary sites is the total K-12 enrollment If 645 is the total number of hours being distributed in the initial allocation Then 645/20439 = this is the distribution factor x = 352 hours available for elementary sites 9283 x = 293 hours available for secondary sites Elementary Allocation Model The elementary allocation model is based on a base of 16 ESP hours for the first 550 students. A per student differential is determined and added to the base of 16. Distributed hours are rounded to the nearest quarter (1/4) hour. Secondary Allocation Model The secondary allocation model is based on a base of 24 ESP hours for the first 500 students. An additional nine hours is added to each of the three senior high schools for such tasks as graduation, transcripts, parking lots, uncontrolled entrances, credit recovery, additional after-hours student supervision, etc. A per student differential is determined and added to the base of 24 ESP hours plus additional hours. Distributed hours are rounded to the nearest quarter (1/4) hour. Use of ESP Hours at Sites The allocation models allow for flexibility at the building level to satisfy the unique needs of each building. Building leaders will determine the use of the ESP hours allocated to sites. 99 Staffing March 1, 2013

100 Allocation Basis & Parameters Educational Support Professional (ESP) Note: PELRA defines public employee as one whose service exceeds the lesser of 14 hours per week or 35% of the normal workweek in the E.S.P. unit (10 ½ hours per week). Thus, 10 ½ hours per week is the minimum number of hours an E.S.P. must work to earn and maintain contract privileges. An E.S.P. earns health insurance benefits at 30 hours per week. Conversion of ESP Hours ESP hours allocated to sites are class I ESP hours. Buildings may convert class I ESP hours to class II ESP hours or to AESP employee classifications using conversion chart below: Note: Conversion is allowed ONLY to other ESP classifications or AESP employee classifications. Conversion to AESP classification is intended for the purpose of buying up to a full position only. See chart below for allowable conversions Conversions Using ESP Hours Hours / Position Converting To Class II ESP Allocated ESP Hours Needed 1:1 conversion (up to 6 hours per site) Class II A AESP (8 hour/day; 212 days) 9.50 Class III A AESP (8 hours/day; 212 days) Class II B AESP (8 hours/day; 260 days) Class IVA AESP Resource Mgr (8 hours/day; 219 days) Class IVB AESP (8 hours/day; 260 days) Class V AESP (8 hours/day; 260 days) ESP Reserve There are fewer ESP hours available for in reserve. This was intentional in order to push out more hours to sites up front. This small reserve is kept for possible distribution where needed due to updated enrollment data prior to the start of the school year and for emergency purposes. Submit requests in writing to the DLTL assistant superintendent for unforeseen needs that surface during the school year. Indicate the hours being requested per day and length of time the additional staff allocation will be needed when making this request. Please contact Anne Ramsey for questions. 100 Staffing March 1, 2013

101 101 FY2014 STAFF DEVELOPMENT 5/2/2013 FY 2014 Set-aside Calculation ADM WADM K (@.612 per ADM) 1, $ (@1.115 per ADM) 4,880 5, $ (@ 1.06 per ADM) 4,614 4, (@ 1.30 per ADM) 9,133 11,873 25% District Total 20,202 23,169 25% Exemplary Set-aside = 2% * $5,224 * 23,169 AMCPU = $ 2,420,680 Total District (25%) Exemplary (25%) Total FY 2014 BUDGET 605, ,170 2,420, Sub Days SEM (44 days) 128,300 CATS (20 days) 2,660 2,660 Spec Ed Allocation (50 days) 6,695 OSTC Allocation - MOVED TO FED 0 2. Bldg Staff Dev Allocations (Travel/Other Assign) Elementary Allocation 29,968 Vocational Allocation (CIES - Julie Halverson) 12, District Staff Develop TIES Training 70,000 70, Staff Center (Community Engagement) Staff Dev Travel 9, Teacher Mentor (CIES - Candace Gordon) Other Assign 17,266 17, District Curriculum (DLTL) Travel Expense 30,000 30,000 Food 1,000 1, District Initiatives(Supt.) 30,912 30, Exemplary Grants (CIES - Candace Gordon) 40,000 40, Program Improvement (PIP - Curriculum Writing) Prof & Tech Services 1,200 1,200 Business Travel 5,000 5,000 Sub Days (874 days) 52,402 52,402 Other Assign (Writing Time) 50,000 50, Elementary Division Allocation (DLTL) Asst. Supt.'s Allocation 17,327 17,327 Other Assign 320 Principal's Conference Fund 27, Secondary Division Allocation (DLTL) Asst. Supt.'s Allocation 40,493 Principal's Conference Fund 27, District Adm Allocation (Board, Supt., Admin.) Board Travel 16,500 16,500 Travel 10,486 10,486 Staff Dev Travel 25,471 25, DLTL District Instruction Staff Expense 284, , I2T2 - Media Staff Expense 4,124 4,124 Prof & Tech Services I2T2 - Tech Management Travel Expense 16,108 16, Staff Costs for Inservice Days (Year-End JE) ($473 * 1411 staff * 5 days) District (2/5) 1,334,806 1,334,806 Building (3/5) 2,002, Gifted and Talented - SEM (10% of salary for 13.5 teachers) 117, Curriculum Specialists ($473 * 3.05 teachers * 191 days) 528, ,098 TOTAL BUDGET 1,851, ,276 4,940,938

102 102 SUPPLIES/EXPENSES ALLOCATION WORKSHEET 03/14/13 (Object Codes - 300's, 400's, & 800's) 0.0% INCREASE DIVISION OF LEADERSHIP, TEACHING, AND LEARNING FY 2013 ALLOCATION FY 2014 ALLOCATION Per pupil Total Per pupil Budget Total Amount Allocation Amount Adjust Allocation Change Elementary (staffing projections) 11,051 11, Junior High 4,402 4, OALC Senior High 4,526 4, Enrollment 20,124 20, Asst. Supt. - Elementary XXX-000 $3.79 $41,926 $3.79 $41,952 $26 Asst. Supt. - Secondary XXX-000 $5.94 $91,093 $ ,389 ($37,704) DLTL - K XXX-000 $9,848 $9, Base Elementary 01-XXX-XXX-000-XXX-000 $56.75 $627,144 $56.75 (8,000) $620,166 ($6,978) Junior High 01-XXX-XXX-000-XXX-000 $62.52 $275,213 $62.52 $277,589 $2,376 OALC XXX-000-XXX-000 $ $55,838 $ $55,838 $0 Senior High 01-XXX-XXX-000-XXX-000 $69.98 $316,736 $69.98 $318,269 $1, Staff Develop Sub & Other Assign Days (DLTL & Site) 01-XXX XX-000 $124,514 $124,514 [ $0 Staff Develop Fund (DLTL & Site) 01-XXX XX-000 $160,629 (50,000) $110,629 ($50,000) Staff Develop Fund (Exemplary) $29,968 $29,968 $0 PLC Staff - (Exemplary) XX-103 $30,000 $30,000 $0 PLC Staff Development - (Exemplary) XX-103 $15,000 $15,000 $0 4. Special Assignments/Contingency District Sub Days $29,458 0 $29,458 $0 District Other Assginment Days XX-000 $44,644 0 $44, Extra-curricular Athletics and Activities 01-3XX-29X-000-XXX-XXX $420,471 (13,500) $406,971 ($13,500) Transportation 01-3XX-29X XXX $399,117 (110,000) $289,117 ($110,000) 7. Copier Maintenance Elementary $137,617 $137,617 $0 Secondary $116,575 $116,575 $0 OALC $14,185 $14, Principal's Prof Dues Elementary $15,600 $15,600 $0 Secondary $16,600 $16,600 $0 CIES $6,133 $6,133 $0 9. Principal's Nat'l Conf Professional Development Account $45,000 0 $45,000 [ $0 10. DLTL Transfer of Staff Development Funds to Supplies 01-xxx-xxx-000-xxx-000 $40,000 0 $40,000 $0 11. Commencement 01-xxx- $53,698 $53,698 $0 12. Homebound Instruction $45,754 $45,754 TOTAL $3,162,761 (181,500) $2,948,513 ($214,248) on staff development worksheet TOTAL STAFF NON-STAFF DLTL PD 355, , ,597 Site PD 0 (allocated later (based on teacher FTE)) Activities 696, ,088 Site Supply 1,526, ,526,258 DLTL Supply 371, , ,056 $2,948, ,514 2,613,999 Item 11 supply allocation 2014.xlsx

103 BENCHMARK COMPARISONS SECTION Our mission is to inspire and prepare all students with the confidence, courage and competence to achieve their dreams; contribute to community; and engage in a lifetime of learning. 103

104 104 FISCAL YEAR 2012 BENCHMARK COMPARISONS PERCENT OF EFFECTIVE EXPENDITURES FOR INSTRUCTION ST. PAUL 79.40% ROSEMOUNT-APPLE VALLEY- EAGAN 78.60% MINNEAPOLIS 78.20% OSSEO 77.20% ANOKA-HENNEPIN 77.00% NORTH ST. PAUL 76.30% ELK RIVER 75.90% SOUTH WASHINGTON COUNTY 74.60% ROCHESTER 72.20% ROBBINSDALE 71.10% 66.00% 68.00% 70.00% 72.00% 74.00% 76.00% 78.00% 80.00% 82.00% Source: Minnesota Department of Education School District Profiles Report April 15, 2013

105 105 FISCAL YEAR 2012 BENCHMARK COMPARISONS TOTAL PK-12 OPERATING EXPENDITURES DISTRICT COST PER STUDENT RANK MINNEAPOLIS $13,222 1 ST. PAUL $12,641 2 OSSEO $10,973 3 ROBBINSDALE $10,466 4 ROSEMOUNT-APPLE VALLEY-EAGAN $10,050 5 NORTH ST. PAUL $9,681 6 ANOKA-HENNEPIN $9,592 7 ELK RIVER $9,137 8 SOUTH WASHINGTON COUNTY $9,097 9 ROCHESTER $9, AVERAGE $10,396 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

106 106 FISCAL YEAR 2012 BENCHMARK COMPARISONS TOTAL DISTRICT & SCHOOL ADMINISTRATION/SUPPORT SERVICES* DISTRICT COST PER STUDENT RANK MINNEAPOLIS $995 1 ST. PAUL $935 2 ROCHESTER $878 3 OSSEO $837 4 NORTH ST. PAUL $796 5 ROBBINSDALE $764 6 ROSEMOUNT-APPLE VALLEY-EAGAN $754 7 ELK RIVER $705 8 SOUTH WASHINGTON COUNTY $696 9 ANOKA-HENNEPIN $ AVERAGE $781 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

107 107 FISCAL YEAR 2012 BENCHMARK COMPARISONS TRANSPORTATION EXPENSE* DISTRICT COST PER STUDENT RANK MINNEAPOLIS $797 1 ROBBINSDALE $777 2 OSSEO $748 3 ST. PAUL $666 4 ROCHESTER $614 5 SOUTH WASHINGTON COUNTY $600 6 NORTH ST. PAUL $573 7 ANOKA-HENNEPIN $565 8 ROSEMOUNT-APPLE VALLEY-EAGAN $507 9 ELK RIVER $ AVERAGE $627 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

108 108 FISCAL YEAR 2012 BENCHMARK COMPARISONS CAPITAL EXPENDITURES* DISTRICT COST PER STUDENT RANK ROBBINSDALE $713 1 ELK RIVER $450 2 SOUTH WASHINGTON COUNTY $420 3 ANOKA-HENNEPIN $416 4 MINNEAPOLIS $396 5 NORTH ST. PAUL $378 6 OSSEO $358 7 ROSEMOUNT-APPLE VALLEY-EAGAN $288 8 ROCHESTER $241 9 ST. PAUL $ AVERAGE $386 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

109 109 FISCAL YEAR 2012 BENCHMARK COMPARISONS PUPIL FOOD SERVICE EXPENSE* DISTRICT COST PER STUDENT RANK ST. PAUL $619 1 ROBBINSDALE $521 2 OSSEO $514 3 NORTH ST. PAUL $507 4 ELK RIVER $455 5 ROCHESTER $443 6 SOUTH WASHINGTON COUNTY $441 7 ANOKA-HENNEPIN $432 8 ROSEMOUNT-APPLE VALLEY-EAGAN $414 9 MINNEAPOLIS $ AVERAGE $476 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

110 110 FISCAL YEAR 2012 BENCHMARK COMPARISONS COMMUNITY SERVICES EXPENSES* DISTRICT COST PER STUDENT RANK NORTH ST. PAUL $708 1 OSSEO $677 2 MINNEAPOLIS $662 3 SOUTH WASHINGTON COUNTY $660 4 ROBBINSDALE $639 5 ST. PAUL $630 6 ROCHESTER $557 7 ANOKA-HENNEPIN $480 8 ELK RIVER $433 9 ROSEMOUNT-APPLE VALLEY-EAGAN $ AVERAGE $578 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

111 111 FISCAL YEAR 2012 BENCHMARK COMPARISONS DEBT SERVICE EXPENSES* DISTRICT COST PER STUDENT RANK ROBBINSDALE $3,292 1 MINNEAPOLIS $2,023 2 ELK RIVER $1,938 3 SOUTH WASHINGTON COUNTY $1,464 4 NORTH ST. PAUL $1,104 5 OSSEO $1,035 6 ST. PAUL $1,033 7 ROSEMOUNT-APPLE VALLEY-EAGAN $664 8 ROCHESTER $613 9 ANOKA-HENNEPIN $ AVERAGE $1,372 * Source: Minnesota Department of Education School District Profiles Report April 15, 2013

112 Minnesot Budget & Economic Forecast At a Glance November 2013 FOR IMMEDIATE RELEASE Minnesota s Budget Outlook Improves K-12 Shifts Completely Repaid; $825 Million Projected Balance Remains $1.086 Billion Balance Projected for FY Changes in forecast general fund revenue and expenditures for the current biennium have increased the projected balance for FY from $47 million to $1.086 billion. Forecast revenues have increased $787 million (2.0 percent), while projected spending is $247 million (0.6 percent) lower. A net reduction in general fund reserves added an additional $5 million to the bottom line. K-12 Shifts Completely Repaid, $825 Million Balance Remains. As in recent forecasts, current law requires any forecast balance be used to repay K- 12 shifts. The first $246 million of the balance will be used to complete repayment of the K-12 school property tax recognition shift. Additionally, $15 million is transferred to the state airports fund, restoring money originally borrowed in This forecast completes repayment of accounting shifts from prior budget solutions, reducing the forecast balance to $825 million. FY General Fund Forecast ($ in millions) November $ Change Beginning Balance $1,712 $0 Revenues 39, Spending 38,807 (247) Cash & Budget Reserve 1,011 5 Stadium Reserve 18 (9) Forecast Balance $1,086 $1,038 School Shift Buyback Repay Airports Fund 15 - Budgetary Balance $ U.S. Real GDP Annual Percent Change Feb '13 Nov ' Source: Global Insight (GI) Minnesota s Economy Remains Strong, State Revenues Benefit. The state s unemployment rate fell to 4.8 percent in October, the lowest level since the recession began in December 2007 and a full two and a half percentage points lower than the nation. Stronger employment and income growth continue to contribute to forecast revenue growth in FY Higher income and corporate tax estimates are the source of almost all of the additional forecast revenue. This improvement, however, is not without risk. To date, only four months of revenues have been collected out of the twenty-four months of the current budget period. 0 U.S. Economic Outlook is Slightly Weaker. Global Insight expects moderate CY economic growth to extend through the biennium. Real GDP growth is now expected to be 1.7 percent in 2013, 2.5 percent in 2014 and 3.1 percent in February s baseline forecast had called for 1.9 percent growth in 2013, followed by 2.8 percent and 3.3 percent growth in 2014 and 2015 respectively. Uncertainty surrounding federal budget and debt ceiling discussions and possible revisions to recent positive economic reports are the most significant near-term threats to the U.S. outlook. 10% 8% 6% 4% 2% Unemployment Rate Monthly, Seasonally Adjusted U.S. Minnesota = U.S. Recession 0% '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 Source: MN Department of Employment and Economic Development (DEED) FY Revenue Forecast ($ in millions) October November $ Change Individual Income $18,876 $19,372 $496 Sales 10,130 10, Corporate 2,422 2, Statewide Property 1,685 1,670 (16) All Other Revenues 3,514 3, Total Tax Revenues $36,627 $37,451 $824 All Other Revenues, Transfers 1,785 1,758 (37) Total Revenues $38,422 $39,209 $787 CONTACT: John Pollard, Legislative & Communications Director , john.pollard@state.mn.us Complete Forecast & Supporting Budget Documents: 112