AVON COMMUNITY SCHOOL CORPORATION. PUBLIC HEARING on the 2013 BUDGET

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Miles Cain
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1 PUBLIC HEARING on the 2013 BUDGET August 29, 2012

2 Important Upcoming Dates August 29, 2012 Public Hearing on 2013 Budget. The 2013 Budget is (5:30 p.m.) available in booklet form for the Board. September 2, 2012 Statutory deadline for submission of Form 4B s and County Council Tax Budget Review Form for non-binding review. September 13, 2012 School Board Adoption of the 2013 Budget. The 2013 proposed budget (9:15 a.m.) will be presented at this meeting on state forms using the official format. September 15, 2012 January 2013 February 28, 2013 March 31, Adopted Budget uploaded to the Indiana Department of Local Government Finance Budget Gateway System Approximate date of local budget hearing with hearing officers from the Department of Local Government Finance. Statutory deadline for budget, rate and levy approval by the Department of Local Government Finance. Statutory deadline for the Hendricks County Auditor to provide circuit breaker estimates June & December 2013 Estimated months of property tax distributions from Hendricks County Treasurer

3 There are 6 separate funds that make up the school corporation annual budget: GENERAL FUND Used for controlling most of the operating expenses: salaries, fringe benefits, supplies, purchased services PENSION DEBT FUND Used for payment of pension debt incurred by the corporation TRANSPORTATION FUND Used for operating expenses of transporting children to and from school and school events DEBT SERVICE FUND Used for all payments of debt incurred by the corporation BUS REPLACEMENT FUND Used for purchase/lease of school buses. CAPITAL PROJECTS FUND Used for purchase & maintenance of equipment; construction & repair of buildings, land acquisition; and fees for professional services

4 Funding Flow Chart

5 2013 Budget Highlights Projects for an ADM (Average Daily Membership) of 8,288 an increase of 38 (0.46% increase) Requests a spending increase of $1.7 million an increase of 1.8% - compared to the adopted 2012 budget Requests a levy decrease of approximately $500,000 a decrease of 1.0% - compared to the adopted 2012 budget Requests a decrease in tax rate by $ a decrease of 1.5% - compared to the adopted 2012 budget Projects a decrease in Net Assessed Valuation of 2%

Total Advertised Appropriation Analysis General Fund $53,705,608 56.

7% Total Advertised Budget for 2013: $95,356,375 Total Advertised Tax Rate: $2.

6 Total Advertised Appropriation Analysis General Fund $53,705, % Transportation Fund $6,220, % Capital Projects Fund $8,304, % Total Advertised Budget for 2013: $95,356,375 Total Advertised Tax Rate: $ Debt Service Fund $24,777, % Pension Debt Fund $880, % Bus Replacement Fund $1,467, %

7 Adopted versus Approved versus Actual Budgets (proj.) 2013 (proj.) ADOPTED $94,895,804 $101,497,050 $96,790,947 $93,642,062 $95,356,608 APPROVED $91,349,874 $87,245,191 $87,180,323 $84,964,079 ACTUAL $87,291,224 $86,867,803 $84,426,568 $84,964,079 $85,388,900 DIFFERENCE -$423,421 -$2,441,235 $537,511 $424,820

8 Adopted versus Approved versus Actual Budgets $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 ADOPTED APPROVED ACTUAL $20,000,000 $ (proj.) 2013 (proj.)

9 Funding Summary Avon Community School Corporation Proposed 2013 Funding Summary FUND Actual 2010 % of Funds Actual 2011 % of Funds Adopted 2012 % of Funds Proposed 2013 % of Funds STATE SUPPORT 45,105, % 46,175, % 45,462, % 48,008, % PROPERTY TAX 31,078, % 33,211, % 47,856, % 47,382, % OTHER LOCAL TAX 5,415, % 4,092, % 2,213, % 2,160, % FEES 665, % 968, % 911, % 601, % OTHER LOCAL REVENUE 1,905, % 1,554, % 383, % 126, % INTEREST EARNED 42, % 37, % 31, % 28, % TOTAL ALL FUNDS 84,213,203 86,040,119 96,858,521 98,308,919 TOTAL EXPENDITURES 86,867,802 84,426,568 93,640,062 95,356,375 CASH BALANCE (2,654,599) 1,613,551 3,218,459 2,952,544

10 Four Categories of Spending 1. STUDENT ACADEMIC ACHIEVEMENT Examples: Classroom teacher salaries & benefits 2. STUDENT INSTRUCTIONAL SUPPORT Examples: Guidance Counselor/Principal salaries & benefits 3. Overhead and Operational Examples: Classroom software & Building maintenance 4. Nonoperational Examples: Debt obligations

11 Four Categories of Spending (cont.) General Assembly recommends 65/35 spending rule, but has not required to date.

12 Categorical Spending (adopted) 2013 (proposed) Student Academic Achievement 41% 39% 41% 42% 36% 37% Student Instructional Support 9% 9% 10% 10% 9% 9% Overhead and Operational 24% 22% 19% 18% 25% 24% Nonoperational 26% 30% 30% 30% 30% 30%

13 3-Year Capital Projects Plan Highlights Capital Projects Fund is the fund used to: Pay for the technology staff salaries and benefits Maintain/Acquire technology needs for 8,800 students (PreK 12) and approximately 1,100 staff members Maintain/Improve 2.1 million square feet of building asset space Pay for up to $1,291,584/year for Property & Casualty Insurance and Utilities

14 3-Year Capital Projects Plan Highlights 2013 CAPITAL PROJECTS FUND breakdown: Technology Operations 28.5% Maintenance of Building & Equipment 31.6% Purchase and Maintenance of Equipment 9.9% Utilities/Property & Casualty Insurance 17.9% Construction 10.6% Professional Fees 0.9% Emergency Allocation 0.6%

15 12-Year Bus Replacement Plan Highlights 12-year old buses will need to be replaced from ACSC s heavy growth years beginning in budget year 2014.

16 12-Year Bus Replacement Plan Highlights A B C D E No. of buses No. of buses to Year Total of Replacement *Amount to be owned be replaced Cost Accumulated in 2013 for future purchases , , ,244, ,016, ,920, ,992, ,336, ,672, ,805, ,596, ,928, , ,592

17 House Enrolled Act 1072 Avon Community School Corporation 2012 Property Tax Revenue Fund Certified Levy Revenue Loss To Tax Caps 2012 Projected Levy Debt Service $25,666,460 ($3,972,659) $21,693,801 Pension Bond $1,002,361 ($155,146) $847,215 Capital Projects $3,788,925 ($586,450) $3,202,475 Transportation $5,847,775 ($905,120) $4,942,655 Bus Replacement $1,120,640 ($173,453) $947,187 TOTAL $37,426,161 ($5,792,827) $31,633,334

18 House Enrolled Act 1072 Avon Community School Corporation 2012 Property Tax Revenue Fund Certified Levy Revenue Loss To Tax Caps 2012 Projected Levy Debt Service $25,666,460 $0 $25,666,460 Pension Bond $1,002,361 $0 $1,002,361 Capital Projects $3,788,925 ($2,040,336) $1,748,589 Transportation $5,847,775 ($3,149,026) $2,698,749 Bus Replacement $1,120,640 ($603,465) $517,175 TOTAL $37,426,161 ($5,792,827) $31,633,334

19 Avon Community School Corporation Data In 2012, ACSC ranks 339 th out of 357 school corporations that received funding through the Indiana Department of Education funding formula ACSC has experienced revenue reductions, as a result of circuit breaker (property tax caps), totaling $15.4 million from approved budgets for the past three years ( state approved budgets)

20 Looking Forward Governor/Presidential Election Economic Recovery Concerns Student Growth/Decline Assessed Value Increases/Decreases Foreclosures Property Tax Caps Increasing Debt Obligations through 2015 State Economy - Sales Tax, Income Tax Increased Competition - Charter Schools/ Vouchers Town/Township Merger

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