McLean County Unit SD No. 5

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1 McLean County Unit SD No. 5 PMA Financial Planning Program Presented by Scott Smith Senior Financial Advisor PMA Securities, Inc. PMA Financial Network, Inc. February 9, 2011

2 Revenues by Source REVENUE BY SOURCE DETAIL - FY 2011 General State Aid 14.4% Other State 9.0% Federal 3.7% Other Local 6.7% Property Taxes 66.2% Education, Operations & Maintenance, Transportation, and Working Cash Funds 2

3 Key Revenue Assumptions Local Revenue Equalized Assessed Valuation (EAV) Growth 2009 Levy 3.38% growth (actual) 2010 Levy 1.9% growth 2011 Levy 0.8% growth 2012 Levy 1.5% growth 2013 Levy 2.0% growth General State Aid Foundation Level currently $6,119 No increase assumed for FY2012 $100 increase each year for FY2013-FY2016 Other State Revenue Special Education funding flat for future years 3% increases in Early Childhood, Driver Education, Bilingual Education Transportation funding reduced by 10% for FY2012 and then maintained Federal Revenue 3% increase each year in Federal programs 3

4 EAV History and Assumptions Total EAV % Change 7% 6% 6.12% 6.06% 5% 4% 3% 2% 3.38% 1.90% 1.50% 2.00% 3.00% 3.50% 3.50% 1% 0.80% 0% Actual Projected 4

5 General State Aid General State Aid Revenue (in Millions) $13.1 $16.1 $17.0 $16.2 $15.5 $15.1 $14.1 $17.4 $19.0 $ Actual Projected 5

6 Expenditures by Object FY 2011 EXPENDITURES BY OBJECT Supplies And Purchased Services Materials 4.8% 9.5% Benefits 10.7% Capital Outlay 0.2% Other Objects 4.8% Non-Capitalized Equipment 0.2% Salaries 69.7% Education, Operations & Maintenance, Transportation, Funds 6

7 Key Expenditure Assumptions Salaries Teachers FY2011 Current agreement FY2012 Step increase FY2013-FY2016 2% base increase plus step Administrators FY2011 salary freeze FY2012 and future years 2% increase each year Other Support Staff Current contracts where applicable, otherwise 2% increase each year Health Insurance FY2012 no increase FY2013 and future years 4% increase each year 7

8 Enrollment Assumptions ENROLLMENT HISTORY AND PROJECTIONS 16,000 14,000 12,000 11,760 12,213 12,452 12,594 12,861 13,056 13,147 13,410 13,611 13,884 14,161 10,000 8,000 6,000 4,000 2, Actual Projected 8

9 Certified Teaching Staff Assumptions Based on Current Staffing Ratios Additional Teaching Staff for Enrollment Growth FY FY FY FY FY Retirees (replaced each year at average Lane 3, Step 3) FY FY FY FY

10 Educational Fund $10,000.0 YEAR END FUND BALANCE (THOUSANDS) $5,000.0 $4,318 $2,192 $0.0 ($5,000.0) ($1,327) ($4,924) ($10,000.0) ($15,000.0) ($20,000.0) ($9,754) ($15,799) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY

11 Operations & Maintenance Fund YEAR END FUND BALANCE (THOUSANDS) $1,000.0 $500.0 $0.0 ($500.0) ($1,000.0) ($1,500.0) ($2,000.0) ($2,500.0) ($3,000.0) ($3,500.0) $427 $83 ($575) ($1,402) ($2,294) ($3,200) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY

12 Transportation Fund YEAR END FUND BALANCE (THOUSANDS) $1,000 $500 $0 ($500) ($1,000) ($1,500) ($2,000) ($2,500) ($3,000) ($3,500) ($4,000) $727 $97 ($669) ($1,593) ($2,582) ($3,645) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY

13 Working Cash Fund YEAR END FUND BALANCE (MILLIONS) $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 $14.5 $13.4 $12.2 $11.2 $10.1 $9.1 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY

14 Aggregate Projections Educational, O&M, Transportation, Working Cash Funds YEAR END FUND BALANCE (THOUSANDS) $20,000 $15,000 $14,552 $12,484 $10,000 $8,596 $5,000 $4,331 $0 ($5,000) ($10,000) ($1,278) ($8,156) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY

15 Aggregate Projections Aggregate View - Projection Summary $20,000,000 $14,552,057 $12,484,381 $8,596,432 $10,000,000 $4,330,802 $0 ($10,000,000) ($1,277,730) ($8,155,534) ($20,000,000)($15,429,152) ($30,000,000) ($17,948,742) ($22,066,065) ($26,961,065) ($40,000,000) ($50,000,000) ($33,293,293) Educational Operations and Maintenance Transportation Working Cash ($41,165,320) FY-End Balances Low-Point Balance 15

16 ISBE Financial Profile Score Watch Early Warning Review Recognition

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