KIMBERLY AREA SCHOOL DISTRICT

Transcription

1 KIMBERLY AREA SCHOOL DISTRICT 2017 ANNUAL MEETING Monday, September 25, :30 PM - Budget Hearing 7:15 PM - Annual Meeting KIMBERLY AREA SCHOOL DISTRICT Administrative Building 425 S. Washington St. Combined Locks, WI 54113

2 Agenda Year in Review Budget Development 3. What does the future hold? 4. Motion to approve Tax Levy Presented by: Becky Hansen Director of Business Services

3 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE THE YEAR IN REVIEW

4 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW STUDENT ACHIEVEMENT Kimberly High School was recognized by the Washington Post as one of the most challenging High Schools in America in May of 2017 for the 7th consecutive year Kimberly is ranked as 14th in the State and the only school in the Fox Valley recognized by the Post.

5 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW KIMBERLY ACHIEVEMENT We had a record number of AP Scholars at KHS Recognized in with 177 KHS Students being Recognized Just the beginning

6 *Data reprinted from Post Crescent October 18, 2016 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW FORWARD EXAM RESULTS FORWARD EXAM RESULTS: ENGLISH LANGUAGE ARTS FORWARD EXAM RESULTS: MATHEMATICS District Percent Proficient/Advanced District Percent Proficient or Advanced Kimberly 58.5 Neenah 55.4 Hortonville 52.6 Kaukauna 47.4 Little Chute 46.1 State 42.7 Appleton 38.8 Menasha 36 Kimberly 66.8 Kaukauna 58.9 Neenah 56.4 Hortonville 52.2 Appleton 46.4 Little Chute 43.3 State 43.7 Menasha 39.5

7 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW ACT RESULTS Class of 2016 District Year Avg. Result Kimberly Area Sch Dist Neenah School District Hortonville School District Little Chute School District Kaukauna Area Sch Dist Appleton Area School District State Average Menasha Joint Sch Dist

8 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW Fund 10 Expenditures Per Student(Headcount) $14, $12, $11, $11, $10, $10, $10, $9, $9, $10, $9, $8, $6, $4, $2, $0.00 Kaukauna Area Menasha Joint Neenah Joint Freedom Area Little Chute Area Appleton Area Hortonville Area Kimberly Area Actual $ per Student State Average

9 KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW ADDITIONAL REVENUE: No additional increase in the Revenue Limit The categorical state aid amount of $150 per pupil increased by $100 to $250/pupil. This equaled $478,250 of additional revenue or a 1% increase.

10 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE YEAR IN REVIEW $10, Revenue Limit per Member $9, $9, $9, $9, $9, $9, $9, $9, $9, $9, $9, $9, $9, $8, Appleton Area Menasha Joint Neenah Joint Hortonville Area Kaukauna Area Kimberly Area Oshkosh Area Little Chute Area Actual $ per Student State Average

11 KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE THE YEAR IN REVIEW The Kimberly Area School District continues to give our customers what they need when they need it at a cost much lower than the state average!

12 The Remainder is used for Working Capital Needs(avoid short term borrowing) KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW The District s fund balance decreased by $1,785,455 $1.8 Million was carried over for the Indoor Athletic Facility Project in The fund balanced decreased in due to using this amount for the project. $1,687,743 of the District s Fund Balance will be assigned to future expenditures Unspent School Budgets can be carried over into the future to encourage better spending Employees did not spend all the money in their Health Care Reimbursement Accounts Our self funded dental insurance has been running very well and the fund balance is reflected in the assigned amount. (This balance is being held to assist with any shortfalls if we move to self funded health)

13 IMPORTANCE OF FUND BALANCE Fund Balance is the cash reserve that is available to the district at the end of the fiscal year to be used as a contingency fund School districts need to maintain adequate financial cash reserves in order to demonstrate a strong fiscal position, solid financial planning, and sound fiscal management. Cash reserves must be adequate to protect the short-term and long-term educational opportunities for our children against some type of financial disruption Insufficient cash reserves will result in the district borrowing to meet our cash flow needs, which will result in an additional interest expense for taxpayers and fewer taxpayer dollars available for educational programming.

14 KIMBERLY AREA SCHOOL DISTRICT BUDGET DEVELOPMENT

15 Revenue Limit State statute limits the amount of revenue that a school board may acquire via the local property tax levy and state equalization aid. On average state wide, the state funds about 66% of school district budgets while local property tax funds about 34%. Factors that impact the revenue limit: Student Enrollment Per Student spending in prior years Additional funding allocated by the state

16 Equalized Aid The primary way the state supports schools is via equalized aid. The state aid formula ranks the wealth of a school district community based on their property wealth per student. Wealthier districts receive less aid and Poorer districts receive more aid. Factors that impact equalized aid: Student Enrollment Local equalized value (property value)

17 The Revenue Limit is a combination of equalized aid and property tax. As one value goes up the other will go down.

18 Head Count Building the Budget Enrollment The district is estimating an increase of 13 students for Estimate

19 Building the Budget Open Enrollment The district is estimating a flat open enrollment count Transfers In Transfers Out Net Transfer Transfers In Transfers Out Net Transfer

20 Building the Budget Equalized Value Remember that the state aid formula ranks the wealth of a school district community based on their property wealth per student. Kimberly s equalized value per student was $366,679 used for the Aid Calculation. The state average was $581,963 in Higher value( Wealthier District ) = Less Aid & Lower Value( Poorer District ) = More Aid Neenah State Average Hortonville Appleton Area Kaukauna Area Kimberly Area Menasha Little Chute Equalized Value Per student

21 Building the Budget Major Revenues FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Property Taxes 12,100,159 12,215,154 12,031,532 12,674,716 12,853,870 11,201,864 Equalization Aid 27,242,259 27,878,226 28,775,017 29,555,808 30,531,444 33,125,000 Per Pupil Aid (Src 619 & 695) 216, , , ,500 1,151,750 2,113,650 Open Enrollment 2,390,320 2,892,737 3,213,754 3,673,995 3,929,297 3,980,561 Historic and Budgeted Revenues Major Sources 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 Property Taxes Equalization Aid Per Pupil Aid (Src 619 & 695) Open Enrollment 10,000,000 5,000,000 - FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

22 Building the Budget Revenue Limit (State Aid and Fund 10 Property Tax) State Aid and Property Taxes State Aid and Property Taxes 29.5% CURRENT YEAR PROPERTY TAX 24.8% CURRENT YEAR PROPERTY TAX 70.1% EQUALIZATION AID 73.4% EQUALIZATION AID

23 Building the Budget Revenue Limit Our Revenue Limit per Pupil is still projected to be less than Revenue Limit per Member $9,800 $9,700 $9,716 $9,600 $9,500 $9,400 $9,495 $9,328 $9,416 $9,425 $9,427 $9,427 $9,300 $9,244 $9,200 $9,176 $9,100 $9,000 $8,900 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Rev Limit per Member

24 Building the Budget Tax Levy Projected to Decrease Fund $ Levy $ Levy % Increase $ Levy % Increase 10 GENERAL FUND $12,676, $12,853, % $11,201, % 39 REFERENDUM APPROVED DEBT SERVICE $3,874, $3,664, % $4,259, % 80 COMMUNITY SERVICE FUND $46, $46, % $46, % $16,598, $16,564, % $15,508, % The Levy is anticipated to decrease by -$1,056,431 or -6.38% All variables are not known yet. Still need to determine enrollment, equalized values and equalized aid dollars before setting the final levy. The state does not provide us with these numbers until October 15 th. We are already 4 months into our budget year.

25 BUILDING THE BUDGET TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION Actual Budget* Dollar Change Percent Change General Fund $7.36 $6.42 ($0.94) (12.77%) Debt Service Fund Community Service Fund Total Tax Rate $2.10 $2.44 $ % $0.03 $0.03 $0.00 0% $9.49 $8.89 ($0.60) (6.32%) * Tax rate is estimated. The actual rate can not be determined until property valuation is certified by the Department of Revenue in October.

26 Mill Rate = Tax Rate per $1000 of Equalized Property Value $11.00 $10.50 $10.24 $10.52 $10.34 $10.13 $10.00 $9.99 $9.72 $9.50 $9.39 $9.49 $9.00 $8.94 $8.89 $8.50 $8.00 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Mill Rate * Property Valuations and the corresponding Tax Rate are estimated. Actuals can not be determined until property valuation is certified by the Department of Revenue in October.

27 BUILDING THE BUDGET TAX LEVY IS BASED ON ASSUMPTIONS AT THIS POINT Revenue Limit Enrollment estimated to increase by 13 students. If more students, Revenue Cap and Tax Levy may increase Property Valuation Estimated 0% Increase. If higher, tax rate may decrease. Equalization (State) Aid If less than projected, Tax Levy will increase Business Computer Valuation. If higher than projected, Tax Levy will decrease. The above estimates will be finalized in October!

28 TAX LEVY IS BASED ON ASSUMPTIONS AT THIS POINT The tax levy and rates can not be finalized until 3 rd Friday in September enrollment numbers are finalized and approved by the State in October. Tax rate increases are based on equalized (market) value. Equalized values will not be available until mid-october. Municipalities are taxed based on assessed value not market value. The assessed value will vary between the 6 municipalities within the District s boundaries. The tax rate is based on the gross school levy (tax). The property owner also needs to subtract out the School Levy Credit to determine the net school levy. However, the school levy credit for each municipality is not determined until December.

29 Building the Budget Total Fund 10 Revenues & Expenses Total Fund 10 Revenues Fund Unaudited Budgeted $ Change % 10 GENERAL FUND $ 50,405, $ 51,550, $ 1,144, % Total Fund 10 Expenses Fund $ $ % 10 GENERAL FUND $52,191, $51,550, $640, % Based on the approved state budget, we will be receiving an additional $200/pupil in categorical aid in or $921,000. The Expenditures actually decreased due to using $1.8 million from the prior year for the indoor athletic facility. The Budget is balanced. Revenues=Expenses

30 Building the Budget General Fund Major Expense Changes Object Level Difference $52,191,057 $51,550,507 $ (640,550) SALARIES $23,275,810 $24,442,173 $ 1,166,363 EMPLOYEE BENEFITS $8,520,381 $9,322,154 $ 801,773 PURCHASED SERVICES $11,924,414 $8,498,123 $ (3,426,291) NON-CAPITAL OBJECTS $1,947,457 $2,107,236 $ 159,779 CAPITAL OBJECTS $1,547,920 $1,648,282 $ 100,362 DEBT RETIREMENT $108,248 $0 $ (108,248) INSURANCE AND JUDGEMENTS $260,275 $341,518 $ 81,243 TRANSFERS $4,333,963 $4,895,480 $ 561,517 OTHER OBJECTS $272,589 $295,541 $ 22,952 Salaries and Benefits Increased by 6.1% - Due to much higher insurance premiums and additional staff and increase in compensation Purchased Services decreased by 29% - This is due to the expensed costs for the Indoor Athletic Facility Debt Retirement Decreased by 100% due to the first lease payment for the scoreboards which will be repaid with sponsor donations over the next 5 years. Insurance and Judgements increased by 31% due to large increases in worker s compensation insurance due to some higher claims years.

31 Building the Budget BREAKDOWN OF EXPENSES BY OBJECT Fund 10 & 27 Expenses by Object Funds 10 & 27 $1,753,934 $4,062,318 $4,334,263 $343,518 $874,200 Salaries : 45.1% Benefits : 17.6% Purchased Services : 19.6% Non-Capital Items : 6.3% $12,571,291 $28,998,580 Capital Items : 2.7% Debt Services : 6.7% $11,319,596 Insurance & Judgements : 0.5% Other Objects : 1.4%

32 Building the Budget General Fund Major Expense Changes Current Staffing Additions include: 1.9 Elementary Teachers 1.0 MS Guidance Counselor 1.0 HS Tech Ed Teacher; 1.0 HS Special Ed, 0.33 HS Social Studies(17-18 School Year only), 1.33 HS Math and FACE 0.2 Elementary Music ( School Year Only) District-wide increase of Paraprofessional hours per week Current Staffing Reductions include: 1.0 MS Administrator 1.0 ACP Coordinator.5 Information Technology Staff Net Staffing Increase of: Teaching Positions & Paraprofessional Hours The staffing increases were to accommodate additional students at the High school level, Sunrise, Janssen and Woodland

33 Building the Budget OTHER FUNDS Special Project Funds Includes Fund 21 (Gifts and donations), Fund 23(State Technology Grant Money), Fund 27(Special Education Funds) Debt Service Funds Includes Fund 38 and 39 which accounts for the principal and interest payments related to the districts energy efficiency debt and referendum debt Capital Projects Funds Includes Fund 41, 45, 46 & 49 which account for financial resources involving district maintenance projects and construction of capital facilities

34 Building the Budget OTHER FUNDS Food Service Fund Fund 50 is used to record all revenues and expenditures related to our food service program Employee Benefit Trust Fund 73 accounts for the district established trust that funds employee retirement benefits the District has been obligated to pay in the future.

35 KIMBERLY AREA SCHOOL DISTRICT Post Retirement Benefit Trust Over the past several years the District has made benefit changes and put a significant amount of money into our Post Retirement Benefit Trust The district made some changes to the make up of our trust in year based on our most recent actuarial study results allowing us to continue to be prudent in funding the trust.

36 KIMBERLY AREA SCHOOL DISTRICT Post Retirement Benefit Trust Performance Beginning Balance Contributions Interest Income & Realized Gains $ 9,329,808 $ 814,008 $ 776,160 Expenses and Benefit Payments $ 586,613 Ending Balance $ 10,333,361 We will continue to allocate money in our budget towards the trust to ultimately fund all of the future retirement benefits for staff.

37 Community Service Fund (Fund 80) Used to account for Community Activities that are not directly related to School Educational Programs Smallest District Fund in terms of Budget Has a separate Tax Levy Unaudited Dollar COMMUNITY SERVICE Budget Change Revenue Tax Levy $ 46,823 $ 46,823 $-0- Fees and Other Sources $ 10,922 $ 9,294 ($1628) Total $ 57,745 $ 56,117 ($1628)

38 COMMUNITY SERVICE FUND EXPENDITURES The District maintains a Community Fitness Center that is open to all community members 6 days a week throughout the year $18,100 has been set aside to pay Fitness Center Supervisors, $23,000 for equipment maintenance and replacement All District Facilities (i.e. Gyms, auditoriums, commons, classrooms) are open to the Public Over 10,000 separate events were scheduled last school year A portion of an employee s salary and benefits ($9,222) are paid out of fund 80 to schedule and coordinate these events

39 COMMUNITY SERVICE FUND EXPENDITURES The District provides several Community Outreach Programs such as Senior Quest and Little Free Libraries A portion of an employee s salary and benefits ($4,900) has been set aside in the Community Service Fund to coordinate these programs $3,000 has been set aside for Supplies for these programs Outagamie County Funds an intervention program for youth in the Community A portion of an employee s salary ($7,294) is paid through a grant out of fund 80 to coordinate this program TOTAL BUDGETED COMMUNITY SERVICE FUND EXPENDITURES - $70,533

40 BUILDING THE BUDGET Continued Health Insurance Cost Containment The Rising cost of health insurance continues to be a major concern! The district was faced with a 34% increase in health insurance for with no other options than to change health insurance carriers and increase the amount that our employees paid out of pocket. We were able to offer a 1x Stipend to employees to offset this increase, however we will continue to face the ongoing problem in the future and it will impact the district budget as well as employees final take home pay.

41 BUILDING THE BUDGET WHAT S NEW IN ? FACILITY IMPROVEMENTS

42 BUILDING THE BUDGET WHAT S NEW IN ? Westside School Improvement The last HVAC unit was replaced at Westside.

43 BUILDING THE BUDGET WHAT S NEW IN ? JRG Commons Renovation To accommodate larger classes at JRG Middle School, the kitchen area was renovated to better accomodate the current 800+ students. The original kitchen was designed to serve only 300 students.

44 BUILDING THE BUDGET WHAT S NEW IN ? INDOOR ATHLETIC FACILITY The Indoor Athletic Facility was completed.

45 BUILDING THE BUDGET WHAT S NEW IN ? Other Significant Capital Improvements Various Paving Improvements Including Janssen Parking Lot Reconstruction to accommodate better traffic flow. Several Flooring Improvements Tennis Court Reconstruction and Paving at KHS and JRG

46 BUILDING THE BUDGET WHAT S NEW IN ? TECHNOLOGY IMPROVEMENTS Upgrades to district server and storage systems. The District continues to set aside dollars to provide mobile student computing devices to supplement our 1:1 program in 5-8 th grade and Bring Your Own Device (BYOD) to school program in Outdated computers are being replaced in many areas throughout the district. Like facilities, having a comprehensive long range plan for technology needs allows us to be prudent in making sure needed projects are funded each year

47 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE

48 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE is the first year of the biannual budget. The state budget does include additional money for public schools of $200 per student increase each year. It is positive that the state has committed more money to public education. In addition, the state has committed to spending more money on vouchers to Non-public schools. In , $22.6 million was provided for 2,992 students residing anywhere in the state outside Milwaukee and Racine and attending a private school.

49 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE The amount of money spent on school vouchers will have increased 77% since This happened while revenue limit per pupil for public schools has been cut and not increased to even where it was in The money for vouchers is reduced from the state aid the district receives and then passed on to the taxpayers. The number of students eligible for vouchers will increase each year for the next ten years.

50 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE Enrollment Growth Enrollment Trend k 5k Total Enrollment Average

51 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE Enrollment Growth The District receives less revenue per student than the state average Offset in past by the District s rapid enrollment growth As Shown in the previous graph, enrollment is significantly lower in the lower grade levels. We need to continue to monitor this and plan accordingly in future budgets.

52 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE Health Insurance Costs continue to rise If costs continue to increase, it will be exceedingly difficult to provide our employees with pay increases while providing the same level of benefits. The district, our employees, health care providers, insurance carriers and government will need to continue to work together to combat this ever increasing cost.

53 KIMBERLY AREA SCHOOL DISTRICT LOOKING TOWARDS THE FUTURE The state budget has given us additional revenue which will help our long term deficit based on declining enrollment. But with increasing costs and less students, we must continue to be conservative and prudent to keep the district in good financial condition. We will need to prioritize what is most important

54 KIMBERLY AREA SCHOOL DISTRICT 2017 ANNUAL MEETING Motion will be made to adopt a Tax Levy of $15,508,462 as presented to you, the electorate.