CEDAR FALLS COMMUNITY SCHOOL DISTRICT. Annual District Financial Report December 10, 2018

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1 CEDAR FALLS COMMUNITY SCHOOL DISTRICT Annual District Financial Report December 10, 2018

2 Where to Begin - Legal Basics Home Rule Governing body has authority to take any action as long as it is not prevented by state or Federal law Applies to cities and counties Dillon s Rule Governing body has the authority to take action only if specifically stated in the law Applies to Iowa public school districts, AEA s and community colleges 2017 passage of HF573 provides some wiggle room but did not grant full Home Rule status

3 Fund Accounting CFCSD Funds General Fund Includes Instructional Support Levy Management Fund Capital Projects Fund (G.O. Bonds) Secure A Vision for Education (Statewide 1 sales tax) Physical Plant & Equipment Levy Activity Fund Nutrition Fund Debt Service Fund Trust & Agency Funds

4 Goals & Principals of Iowa School s Foundation Formula (General Fund) Equity in expenditures Property tax relief Equalization of method of taxation Uniform state aid allocation formula Predictable Pupil-driven Provide for local discretion and incentives ESTABLISHES MAXIMUM SPENDING CONTROL Same formula for all Iowa K-12 public schools and AEA s

5 1. Enrollment Four Key Factors Iowa Public School Foundation Formula Number of students enrolled on October 1 st determines budget and spending authority for the following school year 2. Equalization Legislature established a law that cost per student across the state will be nearly equal to ensure every student equal access to a quality education

6 FY18 Iowa Public Schools District Cost per Pupil = $6,664 per pupil 171 > $6,664 per pupil Cedar Falls = $6,671 0 FY18 District Cost per Pupil

7 FY18 Iowa Public Schools District Cost per Pupil $6,860 FY18 District Cost per Pupil $6,840 $6,820 $6,800 $6,780 $6,760 $6,740 $6,720 $6, = $6,664 per pupil 172 > $6,664 per pupil $6,680 $6,660 $6,640 Cedar Falls

8 Four Key Factors Iowa Public School Foundation Formula 3. Supplemental State Aid Growth (SSA) Legislature & Governor control the annual increase in dollars available per student Basically the State Foundation Formula is the Cost per Student x State percent of growth (SSA) x Oct. 1 st enrollment State foundation formula sets the expenditure ceiling for each school district s total spending authority and tells the school district how to fund its spending authority.

9 Spending Authority (General Fund) Spending Authority is similar to the maximum limit on a credit card. Maximum limit does not necessarily mean you have the cash to spend to that limit. Spending authority is a calculation. It does not generate its own cash. Any unused spending authority (permission) carries forward to the following fiscal year.

10 Spending Authority Calculation (General Fund) Combined District Cost + SBRC Dropout Prevention + SBRC Allowable Growth (increased enrollment, ELL, other misc.) + SBRC Special Education Deficit Allowable Growth + 4 yr. old pre-school funding + Instructional Support Levy + Other miscellaneous income + Previous year unspent budget authority = Maximum Authorized Budget - Expenditures = Unspent Authorized Budget Balance

11 Cedar Falls CSD Unspent Authorized Budget Worksheet Line 32 = Legal Limit on General Fund Spending Authority Data Source Actual FY15 Actual FY16 Actual FY17 Actual FY18 1 Formula AidLevy 4.3/5.1 Regular Program District Cost 30,967,044 31,666,807 33,333,756 34,334,303 2 Formula AidLevy 4.8/5.2 Regular Program Budget Adjustment Formula AidLevy 4.11/5.3 Supplementary Weighting District Cost + 439, , , ,028 4 Formula AidLevy 4.14/5.4 Special Ed District Cost + 3,659,185 3,889,933 4,043,914 4,601,723 5 Formula AidLevy 4.22/5.5 Teacher Salary Supplement District Cost + 2,611,037 2,670,602 2,812,555 2,897,700 6 Formula AidLevy 4.30/5.6 Professional Development Suppl District Cost + 310, , , ,218 7 Formula AidLevy 4.38/5.7 Early Intervention Supplement District Cost + 308, , , ,240 8 Formula AidLevy 4.46/5.8 Teacher Leadership Supplement District Cost ,663,806 9 Formula AidLevy 4.49/5.9 AEA Special Ed Support + 1,538,702 1,579,693 1,660,185 1,729, Formula AidLevy 4.54/5.10 AEA Special Ed Support Adjustment Formula AidLevy 4.60/5.11 AEA Media Services + 270, , , , Formula AidLevy 4.63/5.12 AEA Educational Services + 302, , , , Formula AidLevy 4.66/5.13 AEA Sharing District Cost Formula AidLevy 4.74/5.14 AEA Teacher Salary Suppl District Cost + 196, , , , Formula AidLevy 4.82/5.15 AEA Professional Dev Suppl District Cost + 22,548 23,087 24,190 25, Board/SBRC AidLevy 5.17 SBRC Modified Suppl Amt Dropout Prev + 744, , , , Board/SBRC SBRC SBRC Modified Supplemental Amt Other #1 + 80, , ,596 98, Board/SBRC SBRC SBRC Modified Supplemental Amt Other # , , , , SBRC SBRC/DE Special Ed Deficit Modified Suppl Amt + 675, , , , SBRC SBRC/DE Special Ed Positive Balance Reduction Board/SBRC SBRC/DE AEA Special Ed Positive Balance Board/SBRC SBRC Allowance for Construction Projects SBRC SBRC Unspent Allowance for Construction Auditor AidLevy 5.18 Enrollment Audit Adjustment , Calculated AidLevy 5.16 AEA Prorata Reduction - 198, , , , Calculated Calculated Maximum District Cost = 42,243,285 44,111,794 46,108,175 48,616, Board/Vote AidLevy 7.35 Total Preschool Foundation Aid + 388, , , , Board/Vote AidLevy Instructional Support Authority + 2,399,326 2,444,994 2,549,366 2,660, Board AidLevy 11.3 Ed Improvement Authority Board See Note 1 Other Miscellaneous Income + 7,446,734 5,873,635 7,673,278 5,942, Calculated Calculated Unspent Auth Budget - Previous Year + 9,191,056 8,630,990 8,609,170 8,533, Calculated Calculated Maximum Authorized Budget = 61,668,725 61,473,957 65,365,109 66,230, Board See Note 2 Expenditures - 53,037,735 52,864,787 56,831,461 58,534, Calculated Calculated Unspent Authorized Budget (UAB) = 8,630,990 8,609,170 8,533,648 7,695,692

12 4. Balance Four Key Factors Iowa Public School Foundation Formula The ratio of property tax & state aid supporting a district s budget varies by district. Property rich districts will receive less state aid. Uniform Levy - $5.40/$1,000 State Foundation Percentage to 87.5% level Supplemental State Aid covers property tax increase as a result of an increase in cost per pupil Additional Levy varies from district to district

13 Cedar Falls 2017/18 Cost per Pupil = $6, % $ 838 per Student Additional Levy Combined District Cost Foundation Dollar Level State Foundation Aid = Foundation Dollar Level Uniform Levy 62.82% $4,191 per Student Foundation dollar cost per pupil as set by the State of Iowa x Weighted Enrollment - Uniform Levy + SSA Prop Tax Replacement Payment 24.61% $1,642 per Student Uniform Levy = $5.40 per $1,000 assessed valuation x school district assessed valuation

14 Other District Funds All other District funds are restricted (specific purpose) Cannot be used to support the General Fund Management Capital Projects (New beginning in FY17) Secure A Vision for Education (SAVE) (Statewide 1 sales tax) Physical Plant & Equipment Levy Activity Nutrition Debt Agency & Trust

15 Purpose This report will provide information on: Individual fund revenue & expenditures Individual fund balances General Fund key financial indicators

Ratio #3 Unspent Budget Authority #3A Unspent Budget Authority Ratio #4 Annual Unspent Budget Authority Ratio #5 Salaries & Benefits to

16 General Fund Key Financial Indicators The Iowa Association of School Boards (IASB) has developed key financial indicators to create a snapshot of a District s financial health Key General Fund dashboard indicators include: #1 Certified Enrollment #2 Financial Solvency Ratio #3 Unspent Budget Authority #3A Unspent Budget Authority Ratio #4 Annual Unspent Budget Authority Ratio #5 Salaries & Benefits to Total Budget Ratio Background Color Green = Increase of 0.01% or greater Yellow = 0.00 to 5.00% decrease Orange = Greater than 5.00% decrease

10/2015 10/2016 10/2017 10/2018 Certified Enrollment OE In Tuition In

17 Enrollment History Key Trend Dashboard Indicator #1 Students 5,600 5,400 5,200 5,000 4,800 4,600 4,400 4,200 4,000 10/ / / / / / / /2018 Certified Enrollment OE In Tuition In Increase of 9.5% over the last 8 years. 4 year old pre-school students not included.

18 Iowa Schools Certified Enrollment Percentage Oct to Oct % 100% 80% 60% 40% 20% Cedar Falls % increase 22nd largest increase in Iowa 0% -20% %

19 CFCSD Enrollment Projections Students 6,300 6,100 5,900 5,700 5,500 5,300 5,100 4,900 4,700 4,500 Oct 2007 Oct 2008 Oct 2009 Oct 2010 Oct 2011 Oct 2012 Oct 2013 RSP & Associates projections Updated Jan Oct 2014 Oct 2015 Projected Oct 2016 Oct 2017 Actual Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022 Oct 2023 Oct 2024 Oct 2025 Oct 2026

20 CAR General Fund Balance Millions $16 $14 $12 $10.95 $12.26 $14.04 $13.34 $11.94 $11.89 $12.16 $10 $8 $6 $5.37 $6.33 $8.02 $7.10 $5.48 $4.88 $5.27 $4 $2 $ Total Assets (Cash/Receivables/Inventory) Fund Balance (Assets less Payables) $275,119 increase in cash on hand and $393,177 increase in fund balance.

21 General Fund Revenue/Expenditure History Includes Instructional Support Fund Millions $65 $60 $55 $50 $45 $46.33 $45.15 $50.44 $49.49 $53.68 $52.12 $51.99 $53.04 $52.86 $51.25 $56.22 $56.83 $58.93 $58.53 $40 $35 $ Revenue Expenditures Revenue increased by $2,702,918 and expenditures increased by $1,703,092 from to

22 ISL (only) Revenue/Expenditure Detail Millions $3.0 $2.8 $2.6 $2.4 $2.2 $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $2.74 $2.61 $2.52 $2.41 $2.36 $2.20 $2.29 $2.27 $2.15 $2.12 $2.01 $2.06 $2.07 $ Revenue Expenditures

23 History of General Fund Revenue Millions $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 $2.12 $2.28 $2.18 $1.79 $2.08 $2.15 $2.36 $32.31 $25.33 $31.65 $24.48 $27.33 $28.30 $24.62 $7.04 $3.65 $6.99 $5.20 $3.20 $3.58 $3.67 $16.14 $17.18 $19.13 $17.51 $17.21 $18.62 $ Local - Prop Tax Local - Other State Federal

24 History of General Fund Revenue 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5.10% 3.55% 4.06% 3.99% 4.20% 4.06% 3.60% 53.15% 48.55% 47.19% 52.44% 55.23% 56.29% 54.83% 6.91% 13.86% 13.11% 9.97% 6.99% 6.53% 6.19% 34.85% 34.05% 35.64% 33.60% 33.58% 33.12% 35.38% Local - Prop Tax Local - Other State Federal Due to rounding percentages may not total 100.0%

25 Financial Solvency Ratio Key Trend Dashboard Indicator #2 16% 14% 12% 10% 8% 10.69% 11.90% 13.66% 12.59% 9.78% 7.94% 8.42% 6% 4% 2% 0% Assigned & unassigned fund balance/general fund revenue less AEA flow thru. Measures the District s fund equity position. IASB recommended minimum 5%. Goal 10%

26 History of Unspent Budget Authority (In Dollars) Key Trend Dashboard Indicator #3 Millions $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $9.19 $8.89 $8.63 $8.61 $8.34 $8.53 $7.89 $8.13 $7.83 $7.93 $7.96 $7.70 $7.26 $ Total Unspent Authority Unassigned/Unrestricted Unspent Authority

27 History of Unspent Budget Authority Ratio Key Trend Dashboard Indicator #3A 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 14.87% 15.23% 15.02% 14.28% 13.69% 14.00% 14.00% 13.28% 12.69% 12.89% 13.06% 12.17% 11.62% 10.86% Total Unspent Authority Ratio Unassigned/Unrestricted Unspent Authority Ratio A goal of 10% unassigned/unrestricted unspent authority over expenditures ($6.62 million) is desired. District is at 10.86% for

28 Annual Unspent Budget Authority Ratio Key Trend Dashboard Indicator #4 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% -2.00% 2.92% 1.98% 0.58% % -0.13% -1.07% -1.45% Measures the annual amount in UAB as a percentage of expenditures each year.

29 Net Fund Balance As a Percentage of Unspent Authority 80% 75% 70% 65% 60% 55% 50% 45% 40% Measures the percent of the District s ability to finance it s unspent budget authority.

30 General Fund - Days Net Cash Ratio Days /30/12 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18 Cash & investments/avg. daily cash expenditures. A goal of 90 days is desired.

31 Net Fund Balance As a Percentage of Expenditures 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Measures the percent of the District s cash available to cover non-funded months. Goal 10%

32 Salaries & Benefits to Total Expenditures Ratio Key Trend Dashboard Indicator #5 85.0% 83.80% 83.77% 83.0% 82.64% 81.0% 80.30% 80.07% 79.89% 81.66% 79.0% 78.77% 77.0% 77.85% 75.0% 74.33% 74.74% 73.0% Measures the percent of the District s budget dedicated to labor costs.

33 History of Assessed Valuation Billions $2.2 $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Basic Valuation Valuation w/ TIF Basic Valuation increased 10.35% from FY17 to FY18 & 54.70% over the past 10 years. Valuation w/ TIF increased 3.19% from FY17 to FY18 & 45.13% over the past 10 years.

34 General Fund Combined District Cost 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% Property Tax/State Aid History 62.84% 63.08% 63.76% 63.93% 61.79% 62.82% 58.83% 41.17% 37.16% 38.21% 36.92% 36.24% 36.07% 37.18% State Aid Property Tax

35 Financial Dashboard All Iowa Schools Oct. 1, 2017 Certified Enrollment FY17 Solvency Ratio FY17 UBA Per Pupil Rank = 17 th Largest CF = 5,127.5 (10/1/17) 5,237.6 (10/1/18) % -4.5% Rank = 288 out of 330 State Avg. = 17.83% CF = 7.94% Fy % Fy18 +$24,488 -$262 Rank = 264 out of 330 State Avg. = $3,178 CF = $1,658 Fy17 $1,501 Fy18 FY18 Valuation per Pupil FY18 General Fund Tax Rate FY18 Total Tax Rate $1,260,406 $162,804 Rank = 176 out of 330 State Avg. = $407,725 CF = $365,653 Fy18 $380,734 Fy19 $ $ Rank = 130 out of 330 State Avg. = $ CF = $ Fy18 $ Fy19 $ $ Rank = 127 out of 330 State Avg. = $ CF = $ Fy18 $ Fy19

36 Financial Dashboard 25 Largest Iowa Schools Oct. 1, 2017 Certified Enrollment FY17 Solvency Ratio FY17 UBA Per Pupil 1 (33,057.4) 25 (3,723.4) Rank = 17 th Largest CF = 5,127.5 (10/1/17) 5,237.6 (10/1/18) +22.5% +2.8% Rank = 21 out of 25 Average = 13.09% CF = 7.94% Fy % Fy18 +$4,567 -$262 Rank = 12 out of 25 Average = $1,960 CF = $1,658 Fy17 $1,501 Fy18 FY18 Valuation per Pupil FY18 General Fund Tax Rate FY18 Total Tax Rate $595,820 $168,466 Rank = 5 out of 25 Average = $298,955 CF = $365,653 Fy18 $380,734 Fy19 $ $ Rank = 4 out of 25 Average = $ CF = $ Fy18 $ Fy19 $ $ Rank = 4 out of 25 Average = $ CF = $ Fy18 $ Fy19

37 General Fund Tax Rate $14.00 $13.00 Per $1,000 Assessed Valuation $12.00 $11.00 $10.00 $9.00 $8.00 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Cedar Falls 25 Largest Avg State Avg

38 Total Tax Rate $17.00 $16.00 Per $1,000 Assessed Valuation $15.00 $14.00 $13.00 $12.00 $11.00 $ Cedar Falls 25 Largest Avg State Avg

39 Net Assessed Value per Student $450,000 $430,000 $410,000 $390,000 $370,000 $350,000 $330,000 $310,000 $290,000 $270,000 $250, Cedar Falls 25 Largest Avg State Avg TIF Valuation Not Included

40 History of Supplemental State Aid 6% (Allowable Growth) 5% 4% 3% 2% 1% 0% State Avg. Cedar Falls One Time Funds

Other District Funds (Restricted) Other District funds: Management Capital Projects Fund Secure A Vision for Education (SAVE) (Statewide 1 sales tax) Physical Plant & Equipment Levy (PPEL) Debt

41 Other District Funds (Restricted) Other District funds: Management Capital Projects Fund Secure A Vision for Education (SAVE) (Statewide 1 sales tax) Physical Plant & Equipment Levy (PPEL) Debt Activity Nutrition These are restricted use funds that are subject to laws and regulations established by the Code of Iowa and Iowa Administrative Code. Definitions: Total Assets = Cash, Receivables and Inventory on hand. Fund Balance = Total Assets minus Payables and Accrued Expenses due.

42 Management Fund Restricted fund Board of Education Controlled Used for property/liability/auto/workers compensation/etc. insurance premiums Property loss (deductible only) Unemployment payments Early severance benefits (not used)

43 Management Fund Thousands $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $1,145 $1,209 $1,200 $1,127 $1,071 $1,074 $1,063 $1,005 $1,072 $948 $942 $1,000 $938 $ / / / / / / /18 Total Assets Fund Balance

44 Secure A Vision for Education (SAVE) Restricted fund Formally Local Option One Cent Sales Tax Construction, remodeling, repairing and furnishing of new or existing buildings Purchase or improve school grounds Procure or open roads to buildings Emergency repairs Payment of principle and interest or retirement of general obligation bonds

45 SAVE - Revenue/Expense History Fiscal Year Ending June 30 Beginning Balance Sales Tax Revenue Interest Sale of BAN's/ Bonds Other Revenue Total Available Project Expense BAN/Bond Payment (P & I) EOY Balance Less Req. Bond Reserve Net Available 2000 $3,398 $2,389,728 $63,619 $5,000,000 $0 $7,456,745 $656,624 $0 $6,800, $6,800,121 $3,139,300 $515,092 $680,967 $11,135,480 $2,804,086 $250,300 $8,081, $8,081,094 $3,289,359 $445,141 $357,970 $12,173,564 $5,800,954 $250,300 $6,122, $6,122,310 $3,415,544 $356,005 $331,387 $10,225,246 $3,224,358 $5,250,300 $1,750, $1,750,588 $3,575,011 $22,946 $118,184 $5,466,729 $1,250,748 $0 $4,215, $4,215,981 $3,418,807 $85,233 $235,256 $7,955,277 $3,983,234 $0 $3,972, $3,972,043 $4,090,224 $217,071 $5,046,303 $3,300 $13,328,941 $8,263,024 $147,594 $4,918, $4,918,323 $3,839,801 $260,884 $0 $9,019,008 $2,256,054 $175,400 $6,587, $6,587,554 $4,376,493 $272,527 $0 $11,236,574 $2,265,992 $5,175,400 $3,795, $3,795,182 $4,516,507 $170,853 $10,016,194 $17,500 $18,516,236 $3,547,264 $240,564 $14,728, $14,728,408 $4,514,284 $186,794 $56,616 $19,486,102 $13,258,036 $265,682 $5,962, $5,962,384 $3,607,002 $44,403 $20,500,000 $1,365 $30,115,154 $5,119,637 $10,563,845 $14,431,672 $1,834,533 $12,597, $14,431,672 $3,672,221 $85,127 $20,900 $18,209,920 $4,925,138 $1,835,232 $11,449,550 $1,834,533 $9,615, $11,449,550 $4,468,108 $48,818 $0 $15,966,476 $8,731,307 $1,770,141 $5,465,028 $1,834,533 $3,630, $5,465,028 $4,227,019 $49,678 $9,999,287 $39,920 $19,780,932 $7,415,222 $3,331,454 $9,034,256 $2,829,533 $6,204, $9,034,256 $4,613,875 $35,647 $0 $13,683,778 $1,958,675 $3,272,592 $8,452,511 $2,829,533 $5,622, $8,452,511 $4,682,586 $41,635 $1,398 $13,178,130 $341,056 $2,775,355 $10,061,719 $2,829,533 $7,232, $10,061,719 $4,831,500 $52,038 $0 $14,945,257 $1,781,175 $4,979,369 $8,184,713 $995,000 $7,189, $8,184,713 $4,791,570 $113,601 $1,450,319 $14,540,203 $1,812,585 $3,557,801 $9,169,817 $995,000 $8,174,817 Totals $75,458,939 $3,067,112 $50,561,784 $3,315,082 $79,395,169 $43,841,329

46 Secure A Vision for Education (SAVE) Formally Local Option One Cent Sales Tax Millions $14 $12 $10 $8 $6 $4 $12.46 $11.45 $9.62 $6.12 $5.47 $3.63 $9.65 $9.03 $6.20 $8.47 $8.45 $5.62 $10.26 $10.06 $8.19 $8.18 $7.23 $7.19 $9.21 $9.17 $8.17 $2 2011/ / / / / / /18 Total Assets Fund Balance Unrestricted Fund Balance

31% New High School 1.60% Lincoln 12.28% High School 9.

47 History of SAVE Fund Expense (2000 to 2018) Orchard Hill 1.98% North Cedar 0.64% Peet 15.43% Southdale 14.23% Aldrich 2.31% New High School 1.60% Lincoln 12.28% High School 9.81% Holmes 14.93% Hansen 17.00% Cedar Heights 9.53% District Wide/Legal 0.27%

48 Statewide School Infrastructure Sales & Service Tax Projected Future Fund Balance (Cash Basis) Millions $14.00 $12.00 $12.18 $10.00 $8.00 $6.00 $4.00 $2.00 $9.17 $9.33 $8.17 $8.33 $5.38 $4.38 $2.79 $1.79 $4.29 $3.29 $5.47 $4.47 $6.88 $5.88 $8.07 $7.07 $9.49 $8.50 $10.72 $9.72 $0.00 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Total Fund Balance Net Available Fund Balance As of November Projections do not include future projects.

49 Outstanding Revenue Bond Debt $20,000,000 $18,000,000 Balance due as of June 30 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 Series 2016 bond callable at par after Dec. 31, 2021 $4,000,000 $2,000,000 Series 2013 bonds are now callable $0 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Series 2013 $9.95 Million (2.375% TIC) Series 2016 $15.58 Million Refi (2.100% TIC)

50 Physical Plant & Equipment Levy (PPEL) Restricted fund with two parts Board of Education Controlled up to $0.33/$1,000 (regular) Voter approved additional $1.34/$1,000 levy Voters approved extension of levy on December 6, 2016 Levy now expires at the end of the school year Can be used for: Purchase or improvement of grounds Construction, repairing or remodeling of schoolhouses or roads to schoolhouses including debt for same Purchase or lease of equipment greater that $500 per unit Technology bundling included Purchase or lease of school buses or other vehicles Leasing or renting of facilities

51 Physical Plant & Equipment Levy (PPEL) Millions $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $2.23 $2.83 $2.80 $2.68 $2.29 $3.42 $2.79 $3.40 $3.18 $4.18 $4.06 $3.83 $3.99 $1.5 $1.54 $ / / / / / / /18 Total Assets Fund Balance

52 Debt Service Levy Voters of a school district may approve bonded indebtedness for a period of up to 20 years Proceeds from the sale of General Obligation Bonds are deposited in the Capital Project Fund (31) to be used for the cost of the approved project Revenue from the Debt Service Levy (40) are deposited in the Debt Service Fund to be used to retire principal and interest on the bonds

Debt Service Levy Thousands $350 $300 $250 $200 $150 $100 $50 $0 2011/12

53 Debt Service Levy Thousands $350 $300 $250 $200 $150 $100 $50 $0 2011/ / / / / / /18 Total Assets Fund Balance

Bonds callable after 6/30/2026 $5,000,000 $0 Jun 30 2018 Jun 30 2019 Jun 30 2020 Jun 30 2021 Jun 30 2022 Jun 30 2023 Jun

54 Outstanding General Obligation Bond Debt $35,000,000 $30,000,000 Balance due as of June 30 $25,000,000 $20,000,000 $15,000,000 $10,000, year bond paid in 19 years. Bonds callable after 6/30/2026 $5,000,000 $0 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Series 2017 $32.00 Million (3.078% TIC)

55 Projected Current Debt Service Tax Rate $1.20 Tax Rate per $1,000 Assessed Value $1.10 $1.00 $0.90 $0.80 $0.70 Bonds callable after 6/30/2026 $0.60 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 1% Annual Assessed Value Increase 2% Annual Assessed Value Increase 3% Annual Assessed Value Increase Total District assessed valuation has increased an average of 2.17% over the last 5 years, 4.08% over the last 10 years.

56 Activity Fund Restricted fund Account for student-related activities Admissions Activity Fees Student Dues Student Fund Raising Events Student related co-curricular or extra-curricular activities

57 Activity Fund Thousands $700 $650 $600 $550 $500 $588 $584 $629 $615 $608 $580 $571 $568 $638 $612 $603 $585 $545 $528 $450 $ / / / / / / /18 Total Assets Fund Balance

58 Nutrition Fund Restricted fund Considered an Enterprise Fund Business type activity Fund for which a fee is charged to external users for good or services Account for all transactions for nutrition programs authorized under Iowa Code Chapter 283A

59 Nutrition Fund Thousands $1,500 $1,300 $1,100 $900 $700 $500 $300 $1,297 $794 $788 $973 $877 $723 $721 $721 $770 $730 $722 $647 $634 $532 $491 $ / / / / / / /18 Total Assets Fund Balance Fund Balance w/o Pension

60 Summary As of June 30, 2018 District s financial condition: District General Fund cash balance Increase of $275,115 from June 30, 2017 Days Net Cash Ratio 70 unchanged from 6/30/17 Unspent budget authority (UBA) decreased by $837,976 UBA Ratio 13.06% FY % FY18 UBA will decrease in FY19 & FY20 with the opening of Aldrich Elementary District applied to the School Budget Review Committee for initial staffing & supply costs Increases in enrollment without increases in supplemental state aid (allowable growth) puts more pressure on general fund Continued requirements and changes in enrollment and curriculum may necessitate additional staff

61 Summary Special Education District continues to meet the needs of students Medicaid funding helped reduce special education expenses Net FY18 receipts = $1,109,034 FY18 deficit = $467,283 Projected FY19 deficit = $520,448

62 Summary We must continue to closely monitor budget and funding changes in order to make decisions that Maintain a positive learning environment Maintain a positive financial condition

63 Special thank you to Business Office Staff: Denelle Gonnerman Jana Speck Lisa Voves Michelle Weber Lori Wiley and Carrie DeBerg Administration Board of Education Questions?

CEDAR FALLS COMMUNITY SCHOOL DISTRICT

CEDAR FALLS COMMUNITY SCHOOL DISTRICT District Financial Report February 10, 2014 IASB Key Financial Dashboard Indicators #1 Certified Enrollment #2 Financial Solvency Ratio #3 Unspent Budget Authority