Lake Villa SD #41. PMA Financial Planning Program Presented by Mike Frances, Senior Financial Consultant PMA Financial Network, Inc.

Transcription

1 Lake Villa SD #41 PMA Financial Planning Program Presented by Mike Frances, Senior Financial Consultant PMA Financial Network, Inc.

2 Updated Information FY 2014 Audited Financial Report (AFR) FY 2015 District Budget (updated 1/23/15 for possible amendments) 2014 Consumer Price Index (.8%) for 2015 Levy, which directly impacts the June 2016 (FY16) and September 2016 (FY17) collections Fall 2014 enrollment projections Current & projected enrollment Current & projected staffing All assumptions reviewed and updated (1/20/15) 2

3 $27,403,974 Includes: Educational, Operations & Maintenance, Transportation, Illinois Municipal Retirement Fund, Tort and Working Cash Funds 3

4 Revenue Assumptions Property Taxes 4

5 Revenue Assumptions Property Taxes 5

6 Revenue Assumptions Property Taxes 6

7 Revenue Assumptions General State Aid FY12 Entitlement funded at 95%; FY13 FY 15 funded at 89%; Future years assume 89% funding 7

8 Revenue Assumptions General State Aid FY12 Entitlement funded at 95%; FY13 FY 15 funded at 89%; Future years assume 89% funding 8

9 Revenue Assumptions Local Revenues tied to enrollment changes Additional revenues projected for AMEX, E-Rate and 1:1 fees State & Federal Revenues FY15 Budget Other revenues held at FY15 Budget amounts Note: The fourth FY15 categorical payment is in doubt (approximately $450,000) and will not be certain until late June 9

10 $28,393,582 Includes: Educational, Operations & Maintenance, Transportation, Illinois Municipal Retirement Fund, Tort and Working Cash Funds 10

11 Salaries Expenditure Assumptions Current contract through FY15 FY16 FY20 subject to negotiations Base model includes 2.25% increase per year Does not include Cost Shift ~$63,000 if imposed in FY16 Health benefits increased 13% per year Special Ed tuition increased 4% per year OM expenditures reduced in FY15 by $350,000 Transportation purchased services increased 2% per year FY15 Budget reviewed for amendment Most other expenditures increased 1.5% per year Adjustments made for 1:1 initiative, costs of fiber backbone, online registration software, reduced KDG mid-day transportation costs, & maintenance projects 11

12 Enrollment & Staffing Assumptions Actual enrollment per Fall Housing Report; Projected enrollment per District NOTE: The July 2014 report counted the Pre_K students twice 12

13 Enrollment & Staffing Assumptions 13

14 REVENUE BUDGET Educational Fund - Projection Summary REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg Local $14,273,890 $14,480, % $14,533, % $14,861, % $15,246, % $15,619, % State $6,168,165 $6,595, % $6,614, % $6,351, % $6,045, % $5,415, % Federal $1,044,897 $1,034, % $1,024, % $1,013, % $1,007, % $1,001, % Other $408,260 $408, % $408, % $408, % $408, % $408, % TOTAL REVENUE $21,895,212 $22,519, % $22,580, % $22,635, % $22,707, % $22,445, % EXPENDITURES Salary and Benefit Costs $17,159,834 $17,314, % $17,933, % $18,482, % $19,246, % $20,081, % Other $5,415,707 $5,544, % $5,480, % $5,630, % $5,785, % $5,945, % TOTAL EXPENDITURES $22,575,541 $22,859, % $23,413, % $24,113, % $25,032, % $26,026, % SURPLUS / DEFICIT ($680,329) ($339,757) ($833,702) ($1,478,064) ($2,325,267) ($3,581,848) OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($700,263) ($359,691) ($853,636) ($1,497,998) ($2,345,201) ($3,601,782) BEGINNING FUND BALANCE $10,476,058 $9,775,795 $9,416,104 $8,562,469 $7,064,471 $4,719,270 PROJECTED YEAR END BALANCE $9,775,795 $9,416,104 $8,562,469 $7,064,471 $4,719,270 $1,117,489 FUND BALANCE AS % OF EXPENDITURES 43.30% 41.19% 36.57% 29.30% 18.85% 4.29% FUND BALANCE AS # OF MONTHS OF EXPEND

15 Aggregate - Projection Summary BUDGET REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $18,372,080 $18,833, % $19,141, % $19,531, % $19,973, % $20,405, % State $7,554,946 $7,931, % $7,895, % $7,659, % $7,378, % $6,776, % Federal $1,068,688 $1,058, % $1,048, % $1,037, % $1,031, % $1,025, % Other $408,260 $408, % $408, % $408, % $408, % $408, % TOTAL REVENUE $27,403,974 $28,231, % $28,494, % $28,636, % $28,792, % $28,615, % EXPENDITURES Salary and Benefit Costs $18,210,957 $18,387, % $19,027, % $19,607, % $20,402, % $21,269, % Other $10,182,625 $9,960, % $9,921, % $10,149, % $10,383, % $10,623, % TOTAL EXPENDITURES $28,393,582 $28,347, % $28,949, % $29,756, % $30,785, % $31,892, % SURPLUS / DEFICIT ($989,608) ($116,745) ($455,084) ($1,120,399) ($1,993,276) ($3,277,612) OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) ($17,434) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES ($17,434) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($1,007,042) ($136,679) ($475,018) ($1,140,333) ($2,013,210) ($3,297,546) BEGINNING FUND BALANCE $16,138,391 $15,131,349 $14,994,670 $14,519,652 $13,379,319 $11,366,109 PROJECTED YEAR END BALANCE $15,131,349 $14,994,670 $14,519,652 $13,379,319 $11,366,109 $8,068,563 FUND BALANCE AS % OF EXPENDITURES 53.29% 52.90% 50.16% 44.96% 36.92% 25.30% FUND BALANCE AS # OF MONTHS OF EXPEND Includes: Educational, Operations & Maintenance, Transportation, Illinois Municipal Retirement Fund, Tort and Working Cash Funds 15

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17 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY-END BALANCES $15,131,349 $14,994,670 $14,519,652 $13,379,319 $11,366,109 $8,068,563 FUND BALANCE AS % OF EXPENDITURES 53.29% 52.90% 50.16% 44.96% 36.92% 25.30% FUND BALANCE AS # OF MONTHS OF EXPEND FY-END W/O EARLY TAXES $6,353,287 $6,107,564 $5,482,377 $4,147,486 $1,914,194 ($1,607,284) FUND BALANCE AS % OF EXPENDITURES 22.38% 21.55% 18.94% 13.94% 6.22% -5.04% FUND BALANCE AS # OF MONTHS OF EXPEND (0.05) 17

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19 Operations and Maintenance Fund - Projection Summary BUDGET REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $2,665,646 $2,789, % $2,820, % $2,852, % $2,885, % $2,916, % State $123,612 $0-100% $0 $0 $0 $0 Federal $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 TOTAL REVENUE $2,789,258 $2,789, % $2,820, % $2,852, % $2,885, % $2,916, % EXPENDITURES Salary and Benefit Costs $413,526 $426, % $439, % $454, % $469, % $486, % Other $2,349,549 $2,138, % $2,118, % $2,149, % $2,182, % $2,214, % TOTAL EXPENDITURES $2,763,075 $2,564, % $2,558, % $2,604, % $2,651, % $2,701, % SURPLUS / DEFICIT $26,183 $225,456 $262,500 $248,272 $233,380 $215,536 OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) $7,500 $0 $0 $0 $0 $0 Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES $7,500 $0 $0 $0 $0 $0 SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES $33,683 $225,456 $262,500 $248,272 $233,380 $215,536 BEGINNING FUND BALANCE $2,031,040 $2,064,723 $2,290,179 $2,552,679 $2,800,951 $3,034,331 PROJECTED YEAR END BALANCE $2,064,723 $2,290,179 $2,552,679 $2,800,951 $3,034,331 $3,249,867 FUND BALANCE AS % OF EXPENDITURES 74.73% 89.31% 99.79% % % % FUND BALANCE AS # OF MONTHS OF EXPEND

20 BUDGET Transportation Fund - Projection Summary REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $601,651 $742, % $951, % $969, % $984, % $1,005, % State $1,263,169 $1,335, % $1,281, % $1,307, % $1,333, % $1,360, % Federal $23,791 $23, % $23, % $23, % $23, % $23, % Other $0 $0 $0 $0 $0 $0 TOTAL REVENUE $1,888,611 $2,101, % $2,256, % $2,300, % $2,342, % $2,390, % EXPENDITURES Salary and Benefit Costs $13,255 $13, % $14, % $14, % $15, % $16, % Other $2,287,500 $2,146, % $2,189, % $2,232, % $2,277, % $2,323, % TOTAL EXPENDITURES $2,300,755 $2,159, % $2,203, % $2,247, % $2,293, % $2,339, % SURPLUS / DEFICIT ($412,144) ($58,401) $53,042 $52,575 $49,404 $51,035 OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) $0 $0 $0 $0 $0 $0 Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES $0 $0 $0 $0 $0 $0 SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($412,144) ($58,401) $53,042 $52,575 $49,404 $51,035 BEGINNING FUND BALANCE $530,425 $118,281 $59,880 $112,922 $165,497 $214,901 PROJECTED YEAR END BALANCE $118,281 $59,880 $112,922 $165,497 $214,901 $265,937 FUND BALANCE AS % OF EXPENDITURES 5.14% 2.77% 5.12% 7.36% 9.37% 11.37% FUND BALANCE AS # OF MONTHS OF EXPEND

21 Municipal Retirement/Social Security Fund - Projection Summary BUDGET REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $628,698 $608, % $613, % $614, % $616, % $617, % State $0 $0 $0 $0 $0 $0 Federal $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 TOTAL REVENUE $628,698 $608, % $613, % $614, % $616, % $617, % EXPENDITURES Salary and Benefit Costs $624,342 $632, % $639, % $655, % $670, % $685, % Other $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $624,342 $632, % $639, % $655, % $670, % $685, % SURPLUS / DEFICIT $4,356 ($24,389) ($26,714) ($40,843) ($53,911) ($68,306) OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) $0 $0 $0 $0 $0 $0 Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES $0 $0 $0 $0 $0 $0 SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES $4,356 ($24,389) ($26,714) ($40,843) ($53,911) ($68,306) BEGINNING FUND BALANCE $501,512 $505,868 $481,479 $454,765 $413,922 $360,011 PROJECTED YEAR END BALANCE $505,868 $481,479 $454,765 $413,922 $360,011 $291,705 FUND BALANCE AS % OF EXPENDITURES 81.02% 76.11% 71.06% 63.14% 53.72% 42.54% FUND BALANCE AS # OF MONTHS OF EXPEND

22 Working Cash Fund - Projection Summary BUDGET REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $72,198 $79, % $86, % $93, % $100, % $105, % State $0 $0 $0 $0 $0 $0 Federal $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 TOTAL REVENUE $72,198 $79, % $86, % $93, % $100, % $105, % OTHER FIN. SOURCES/USES Transfer Among Funds (Net) ($5,000) $0 $0 $0 $0 $0 Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES ($5,000) $0 $0 $0 $0 $0 BEGINNING FUND BALANCE $2,599,356 $2,666,554 $2,745,750 $2,831,833 $2,925,261 $3,026,148 PROJECTED YEAR END BALANCE $2,666,554 $2,745,750 $2,831,833 $2,925,261 $3,026,148 $3,131,925 22

23 BUDGET Tort Fund - Projection Summary REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $129,997 $132, % $137, % $140, % $140, % $140, % State $0 $0 $0 $0 $0 $0 Federal $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 TOTAL REVENUE $129,997 $132, % $137, % $140, % $140, % $140, % EXPENDITURES Salary and Benefit Costs $0 $0 $0 $0 $0 $0 Other $129,869 $131, % $133, % $135, % $137, % $139, % TOTAL EXPENDITURES $129,869 $131, % $133, % $135, % $137, % $139, % SURPLUS / DEFICIT $128 $1,149 $3,707 $4,233 $2,231 $193 OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) $0 $0 $0 $0 $0 $0 Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES $0 $0 $0 $0 $0 $0 SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES $128 $1,149 $3,707 $4,233 $2,231 $193 BEGINNING FUND BALANCE $0 $128 $1,277 $4,984 $9,217 $11,448 PROJECTED YEAR END BALANCE $128 $1,277 $4,984 $9,217 $11,448 $11,641 FUND BALANCE AS % OF EXPENDITURES 0.10% 0.97% 3.73% 6.79% 8.31% 8.32% FUND BALANCE AS # OF MONTHS OF EXPEND

24 Projections with Alternate 1.25% Salary Increases Aggregate - Projection Summary BUDGET REVENUE / EXPENDITURE PROJECTIONS FY 2015 FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg FY 2020 % chg REVENUE Local $18,372,080 $18,833, % $19,143, % $19,536, % $19,986, % $20,428, % State $7,554,946 $7,931, % $7,895, % $7,658, % $7,378, % $6,776, % Federal $1,068,688 $1,058, % $1,048, % $1,037, % $1,031, % $1,025, % Other $408,260 $408, % $408, % $408, % $408, % $408, % TOTAL REVENUE $27,403,974 $28,231, % $28,495, % $28,641, % $28,804, % $28,637, % EXPENDITURES Salary and Benefit Costs $18,210,957 $18,238, % $18,727, % $19,151, % $19,786, % $20,489, % Other $10,182,625 $9,960, % $9,921, % $10,149, % $10,383, % $10,623, % TOTAL EXPENDITURES $28,393,582 $28,198, % $28,649, % $29,300, % $30,169, % $31,113, % SURPLUS / DEFICIT ($989,608) $32,394 ($153,505) ($658,974) ($1,365,586) ($2,475,829) OTHER FINANCING SOURCES/USES Transfer Among Funds (Net) ($17,434) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) Sale of Bonds $0 $0 $0 $0 $0 $0 Other Financing Sources $0 $0 $0 $0 $0 $0 Other Financing Uses $0 $0 $0 $0 $0 $0 TOTAL OTHER FIN. SOURCES/USES ($17,434) ($19,934) ($19,934) ($19,934) ($19,934) ($19,934) SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($1,007,042) $12,460 ($173,439) ($678,908) ($1,385,520) ($2,495,763) BEGINNING FUND BALANCE $16,138,391 $15,131,349 $15,143,809 $14,970,371 $14,291,462 $12,905,942 PROJECTED YEAR END BALANCE $15,131,349 $15,143,809 $14,970,371 $14,291,462 $12,905,942 $10,410,179 FUND BALANCE AS % OF EXPENDITURES 53.29% 53.70% 52.25% 48.78% 42.78% 33.46% FUND BALANCE AS # OF MONTHS OF EXPEND

25 Projections with Alternate Salary Increases FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY-END BALANCES $15,131,349 $15,143,809 $14,970,371 $14,291,462 $12,905,942 $10,410,179 FUND BALANCE AS % OF EXPENDITURES 53.29% 53.70% 52.25% 48.78% 42.78% 33.46% FUND BALANCE AS # OF MONTHS OF EXPEND FY-END W/O EARLY TAXES $6,353,287 $6,256,703 $5,933,095 $5,059,629 $3,454,027 $734,332 FUND BALANCE AS % OF EXPENDITURES 22.38% 22.19% 20.71% 17.27% 11.45% 2.36% FUND BALANCE AS # OF MONTHS OF EXPEND

26 The information contained herein is solely intended to suggest/discuss potentially applicable financing applications and is not intended to be a specific buy/sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a definitive written agreement. The analysis or information presented herein is based upon hypothetical projections and/or past performance that have certain limitations. No representation is made that it is accurate or complete or that any results indicated will be achieved. In no way is past performance indicative of future results. Changes to any prices, levels, or assumptions contained herein may have a material impact on results. Any estimates or assumptions contained herein represent our best judgment as of the date indicated and are subject to change without notice. Examples are merely representative and are not meant to be all-inclusive. The information set forth herein was gathered from sources which we believe, but do not guarantee, to be accurate. Neither the information, nor any options expressed, constitute a solicitation by us for purposes of sale or purchase of any securities or commodities. Investment/financing decisions by market participants should not be based on this information. You should consider certain economic risks (and other legal, tax, and accounting consequences) prior to entering into any type of transaction with PMA Securities, Inc. or PMA Financial Network, Inc. It is imperative that any prospective client perform its own research and due diligence, independent of us or our affiliates, to determine suitability of the proposed transaction with respect to the aforementioned potential economic risks and legal, tax, and accounting consequences. Our analyses are not and do not purport to be appraisals of the assets, or business of the District or any other entity. PMA makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax, or accounting effects of consummating a transaction. PMA cannot be relied upon to provide legal, tax, or accounting advice. You should seek out independent and qualified legal, tax, and accounting advice from outside sources. If posted on a webpage, this information has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. Serv ices offered by PMA Securities, Inc. and this registered representative presenter, in particular, are available only in the following state: IL. This information is not an advertisement of services available in any state other than those listed above. Copyright 2015 PMA Financial Network, Inc. 26