Yellowstone County, USA. Fiscal Year. Adopted Budget.

Transcription

1 Yellowstone County, USA Adopted Budget Fiscal Year

2 ANNUAL OPERATING BUDGET Of BILLINGS PUBLIC SCHOOLS Billings, Montana For the period July 1, 2008 through June 30, 2009 Prepared by Financial Services

3 TABLE OF CONTENTS 1 Introductory Section 2 Executive Summary 2 Significant Budget Changes 2 New Way of Thinking 2 Major Goals and Objectives 3 Overview of Budgeted Funds 3 Budget Process 3 Summary of Revenues 3 State of Montana 4 Yellowstone County 4 District Revenue 5 Summary of Expenditures 6 Budget Comparisons and Forecast of Budgeted Funds 7 General Fund 8 Transportation Fund 9 Tuition Fund 10 Retirement Fund 11 Adult Education Fund 12 Technology Fund 13 Flexibility Fund 14 Debt Service Fund 15 Building Reserve Fund 16 Overview of Non-Budgeted Funds 17 Elementary District Non-Budgeted Funds 18 High School District Non-Budgeted Funds 19 Student Enrollment Trends and Forecast 20 Tax Base and Rate Trends 21 Personnel Resource Changes 22 Changes in Debt of Billings Public Schools 22 Long-Term Debt 23 General Obligation Debt 23 Notes Payable-State Board of Investments 24 Academic Efficiency of Dollars Spent 26 Profile of Billings Public Schools 27 Organizational Chart 28 Meritorious Budget Award FY07 Budget 29 Organizational Section 30 Profile of Billings, Montana 30 History of Billings Public Schools 31 Instructional Sites and Enrollment 32 Organizational Chart 33 Mission Statement 33 Election and Purpose of the Board 34 Financial Management Policy 34 Goals 34 Budget and Program Planning 34 Accounting System Design 34 Budgeted and Non-Budgeted Funds

4 35 Assessment 35 Budget Adjustments 35 Budget Development Process 36 Major Goals and Objectives 37 Budget Meeting 37 Budget Calendar 39 Capital Improvement Program 39 Types of Funds 39 Revenue Account Structure 39 Expenditure Account Structure 40 Budgeted Funds 41 Non-Budgeted Funds 41 Proprietary Fund 42 Financial Section 43 Significant Revenue Sources 43 State of Montana 44 Yellowstone County 44 District Revenue 44 Significant Expenditure Sources 44 Salaries 44 Benefits 44 Professional and Technical Services 44 Property Services 44 Purchased Services 44 Supplies and Materials 44 Property and Equipment 45 Other Objects 45 Other Use of Funds 46 Overview of Presentation 47 All Budgeted Funds 47 By Object 48 By Function 50 Analysis of Revenues 52 Analysis of Expenditures 54 All Elementary District Budgeted Funds 56 All High School District Budgeted Funds 58 General Fund 61 Transportation Fund 64 Tuition Fund 67 Retirement Fund 70 Adult Education Fund 73 Technology Fund 76 Flexibility Fund 79 Debt Service Fund 82 Building Reserve Fund 85 Non-Budgeted Funds 86 All District-wide Non-Budgeted Funds Combined 87 All Elementary District Non-Budgeted Fund Combined 88 Elementary District Miscellaneous Programs Fund 89 Elementary District Compensated Absence Fund 90 Elementary District Building Fund 91 Elementary District Student Extracurricular Activities Fund

5 92 Elementary District Private Purpose Trust Fund 93 All High School District Non-Budgeted Funds Combined 94 High School Food Services Fund 95 High School District Miscellaneous Fund 96 High School District Traffic Education Fund 97 High School District Lease-Rental Fund 98 High School District Compensated Absence Fund 99 High School District Building Fund 100 High School District Self Insurance Fund-Health 101 High School District Self Insurance Fund-Liability 103 High School District Interlocal Agreement Fund 103 High School District Extracurricular Activities Fund 104 High School District Private Purpose Trust Fund 105 Combined Budgeted and Non-Budgeted Funds 106 Proprietary Funds 107 Capital Projects 107 Capital Improvement Plan 109 Completed Capital Improvement Projects 110 Current Debt Obligations 110 Long-Term Debt 110 General Obligation Debt 111 Notes Payable-State Board of Investments 111 Post-Retirement Healthcare Plan 113 Informational Section 114 Assessed Value and Estimated Actual Value of Billings Public Schools 115 Property Tax Rates and Collections 116 Impact of Budget on Taxpayers 117 Bond Amortization Schedule 118 Budget Forecast beyond the Budget Year 118 General Fund Forecast 119 Transportation Fund Forecast 120 Tuition Fund Forecast 121 Retirement Fund Forecast 122 Adult Education Fund Forecast 123 Flexibility Fund Forecast 124 Debt Service Fund Forecast 125 Building Reserve Fund Forecast 126 Student Enrollment History 127 Enrollment Forecast 128 Personnel Resource Allocations 129 Performance Measures 129 Billings Public Schools AYP Results 133 Comprehensive Education Plan 133 ACT Composite Scores 134 Past and Future Direction of Billings Public Schools 136 Glossary of Key Terms

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7 Executive Summary The following Executive Summary presents highlights of the fiscal year 2009 budget for Billings Public Schools. The Board of Trustees adopted the FY09 budget on August 22 nd, The Executive Summary provides general information on all budgeted funds, non-budgeted funds, trends, projections, enrollment, personnel allocation, and student achievement. The FY09 Budget Presentation Book will serve as a decision-making guide for Billings Public Schools. Budget Changes This year the District will continue the gradual implementation of a new budget development process called Budgeting for Results. Budgeting for Results enables Billings Public Schools to align resources with a clear set of measurable District-wide results, or goals. Desired outcomes in initiating Budgeting for Results includes developing a balanced budget that funds the programs and activities most likely to deliver the best results for students and creating an easily understood budget for District taxpayers. New Way of Thinking Traditionally, the budget focused on cuts rather than results. Under this method, the Superintendent and District staff will make budget recommendations to the Board. When the Board couldn t fund everything it did the year before, board members were forced to decide what to cut until expenditures fit the available revenue. This kind of approach does not always consider whether programs which make a difference for all students to be successful are being funded. In Budgeting for Results, the District will fund only the programs that fund student achievement across the District. Essentially, the Board of Trustees will decide what to keep instead of what to cut. Major Goals and Objectives The following 6 District-wide results have been adopted by the Board of Trustees for FY07 and will continue to be phased into FY09. Please refer to the Informational Section for further details. 1. Student Competence: All students are competent in the core subjects of reading, writing, math, and science at a level appropriate to their age and ability and have appropriate options for education other than core subjects. 2. Student Post-Secondary Readiness: All graduates are employable and/or ready to succeed in their post-secondary education or training. 3. Student Well-Roundedness: All students become well-rounded citizens. 4. Student Enthusiasm: All students are enthusiastic about learning, now and later in life. 5. Student Safety: All students are safe at school and on their way to it. 6. District Fiscal Responsibility: The District earns the public s trust by spending resources wisely and acting in the best interest of students. 2

8 Overview of Budgeted Funds Billings Public Schools is separated into two distinct governmental entities. The legal names of these school districts are Billings Elementary School District 2 and Billings High School District 2. The Elementary District encompasses grades K-8, while the High School District includes grades Although the District is managed as one entity, both the Elementary and the High School District maintain separate budgeted funds. The District maintains nine individual governmental fund budgets for each District, as follows: General Fund, Transportation Fund, Tuition Fund, Retirement Fund, Adult Education Fund, Technology Fund, Flexibility Fund, Debt Service, and Building Reserve Fund. The funds included in this budget include all budgeted governmental funds maintained by Billings Public Schools as well as non-budgeted funds. Budget Process The preparation of the budget begins in August with the development of the budget calendar. The budget calendar is a schedule of all critical budget-related activities and serves as a communication device between District staff, the School Board, and the community. It includes a list of responsibilities of the District as well as the corresponding month and group or person responsible for completion. Between July 1 st and August 4 th of each year, the Clerk shall publish a notice stating the date, time, and place trustees will meet for the purpose of considering and adopting a final budget for the District. Any taxpayer in the District may appear at the meeting and be heard for or against any part of the budget. The Board must adopt a final budget not later than the fourth (4 th ) Monday in August. Summary of Revenues The operating budget is comprised of three major revenue sources: state, county, and district revenue. Billings Public Schools averages about 45% of their funding from the state, 25% from local property taxes, 10% from county sources, 9% from non-tax local sources, and 11% from Federal sources. Montana s state funding formula for schools is based on enrollment. Total revenue for all budgeted funds in FY09 is projected at $116,420,584. The FY09 adopted budget forecasts an increase in revenues of $3,461,896 or 3.06% from FY08. The following chart presents a summary comparison of the sources of revenue included in this budget. FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 51,974,099 54,912,828 56,752,803 61,774,304 64,890,670 67,287,823 Yellowstone County 12,263,328 13,048,692 11,391,514 12,037,154 12,709,341 13,982,975 District Revenue 33,782,148 33,641,594 35,633,171 32,784,421 35,358,676 35,149,786 Federal Grants 170, Total Revenues $ 98,190,196 $ 101,603,114 $ 103,777,488 $ 106,595,880 $ 112,958,688 $ 116,420,584 State of Montana State revenue contributions are calculated using student enrollment figures. From these counts, Average Number Belonging (ANB) is calculated. ANB is then used to calculate the per-student entitlement and special education funding that, combined with the basic entitlement, makes up the General Fund budget levels for the following school year. Basic entitlement is the minimum funding the District receives. Funding is heavily reliant on enrollment. The District will receive approximately $67,287,823 in State Revenues in FY09, an increase of $2,397,153 from the previous year. Schools received $180 million of new state money to be distributed in FY08 and FY09 through the budget passed by a special session of the Montana 3

9 Legislature in May, The state has seen an approximate 14% increase of state educational funds. Part of the funding goes directly to reduce local property taxes which actually offer no net increase in funding. Another $30 million are one-time funds designated for building maintenance and capital investment. These funds cannot be used to increase teacher or staff salaries or to fund on-going programs. Billings Public Schools received approximately $2.5 million in one-time funds strictly to fund the new full-day kindergarten program in the District. Yellowstone County Property taxes and fees in lieu of taxes are the major source of county revenues. Property taxes are computed using a mathematical procedure called a mill rate. Forecasts of future county funding are uncertain at this time due to the economic condition of the state. With the local permissive (non-voted) tax levy, Yellowstone County revenue is expected to increase from $12,709,341 to $13,982,975, an increase of $1,273,634. The permissive levies fund the tuition, transportation, and retirement funds. District Revenue District revenue is funded by non-levy revenues such as interest earnings, rental of buildings, property tax reimbursements, coal gross proceeds tax, Montana oil and gas tax, and tuition. Billings Public Schools passed its first General Fund mill levy since 2002 on May 8 th, Voters approved a $1.4 million elementary levy and a $2.9 million high school levy. District revenue is expected to decrease by approximately.59% in FY09. $140,000,000 All Budgeted Funds Revenues $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- Actual Actual Actual Actual Actual Budget FY04 FY05 FY06 FY07 FY08 FY09 State of Montana Yellowstone County District Revenue 4

10 Summary of Expenditures The operating budget is comprised of 9 major objects: Salaries, Benefits, Professional and Technical Services, Property Services, Purchased Services, Supplies and Materials, Property and Equipment, Other Objects, and Other Use of Funds. Top 6 Budgeted Funds Expenditures FY04 FY05 FY06 FY07 FY08 FY09 Budget Actual Actual Actual Actual Actual Supplies/Materials Purchased Services Property Services Professional & Technical Services Benefits Salaries $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 The largest expenditure in the District is salaries, followed by benefits. Salary expenses are paid out of the General Fund, Transportation Fund, Adult Education Fund and the Flexibility Fund. The General Fund alone spends approximately 77.88% of its budget on salaries. Salary expenditures are expected to increase by $2,195,049 in FY09 due to District-wide salary increases. Benefits are the second largest expenditure in the District. Billings Public Schools continues to pay the single premium rate for health and life insurance premiums for employees. Single premium rates have risen from $465 per full-time employee to $476 per full-time employee. Total expenditures for all budgeted funds in FY09 are anticipated to be $118,618,196. The FY09 adopted budget forecasts $3,248,381 or a 2.81% increase in expenditures. The chart below presents a summary comparison of expenditures by object included in this budget. FY04 FY05 FY06 FY07 FY08 FY09 Actual Actual Actual Actual Actual Budget Salaries 60,740,106 63,456,032 66,849,106 68,374,840 74,415,125 76,610,174 Benefits 16,773,725 17,266,324 18,694,636 19,709,121 22,152,238 23,185,141 Professional & Technical Services 1,082, , ,400 1,243,083 1,357,243 2,261,518 Property Services 3,229,936 3,039,109 3,243,998 3,108,580 3,521,439 3,323,262 Purchased Services 5,166,889 5,592,991 5,792,696 5,978,854 5,974,431 6,709,089 Supplies/Materials 3,433,628 2,392,595 3,058,115 4,397,843 3,991,687 4,560,000 Property & Equipment 3,101,820 4,079,413 3,905,411 1,094,952 1,050,550 1,064,457 Other Objects 2,430,936 4,405,225 2,810,780 2,871,082 2,907, ,376 Other Use of Funds - 1,193, ,178 Total Expenditures $ 95,959,458 $ 102,333,152 $ 105,333,144 $ 106,778,355 $ 115,369,815 $ 118,618,196 5

11 Budget Comparisons and Forecast of Budgeted Funds The following combined statement of revenues, expenditures and changes in fund balance represent all nine budgeted funds collectively. Budget comparisons of the current year to budget year along with budget forecasts through FY12 of all nine budgeted funds follow. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Budgeted Funds Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 51,974,099 54,912,828 56,752,803 61,774,304 64,890,670 67,287,823 Yellowstone County 12,263,328 13,048,692 11,391,514 12,037,154 12,709,341 13,982,975 District Revenue 33,782,148 33,641,594 35,633,171 32,784,421 35,358,676 35,149,786 Federal Grants 170, Total Revenues $ 98,190,196 $ 101,603,114 $ 103,777,488 $ 106,595,880 $ 112,958,688 $ 116,420,584 Salaries 60,740,106 63,456,032 66,849,106 68,374,840 74,415,125 76,610,174 Benefits 16,773,725 17,266,324 18,694,636 19,709,121 22,152,238 23,185,141 Professional & Technical Services 1,082, , ,400 1,243,083 1,357,243 2,261,518 Property Services 3,229,936 3,039,109 3,243,998 3,108,580 3,521,439 3,323,262 Purchased Services 5,166,889 5,592,991 5,792,696 5,978,854 5,974,431 6,709,089 Supplies/Materials 3,433,628 2,392,595 3,058,115 4,397,843 3,991,687 4,560,000 Property & Equipment 3,101,820 4,079,413 3,905,411 1,094,952 1,050,550 1,064,457 Other Objects 2,430,936 4,405,225 2,810,780 2,871,082 2,907, ,376 Other Use of Funds - 1,193, ,178 Total Expenditures $ 95,959,458 $ 102,333,152 $ 105,333,144 $ 106,778,355 $ 115,369,815 $ 118,618,196 Net Revenues (Expenditures) $ 2,230,739 $ (730,038) $ (1,555,655) $ (182,475) $ (2,411,127) $ (2,197,612) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 1,193, ,175,695 Increase (Decrease) of Reserve for Encumbrances (810,349) (7,382) 255,891 25,347 (338,894) - Material Prior Period Revenue Adjustment 550, ,344 2, ,183 - Total Transfers To (From) Fund Balance $ (259,522) $ 1,186,521 $ 263,235 $ 27,711 $ 228,289 $ 2,175,695 Beginning Fund Balance $ 12,990,519 $ 14,961,736 $ 15,418,219 $ 14,125,798 $ 13,971,034 $ 11,788,196 Ending Fund Balance $ 14,961,736 $ 15,418,219 $ 14,125,798 $ 13,971,034 $ 11,788,196 $ 9,590,584 Note: The $ (2,197,587) in FY09 is cash reappropriated. At the end of each fiscal year, after considering any unpaid obligations, the remainder is referred to as fund balance. Cash re-appropriated is the difference between the end-of-year fund balance and the amount reserved for operations. 6

12 General Fund The General Fund is the largest fund and is the chief reporting vehicle for current operations. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 63,440,003 65,688,246 67,987,334 70,366,891 72,829,732 Yellowstone County District Revenue 29,777,073 29,758,700 30,800,254 31,878,263 32,994,002 Total Revenues $ 93,217,076 $ 95,446,945 $ 98,787,589 $ 102,245,154 $ 105,823,735 Salaries 72,641,956 74,335,300 76,565,359 78,479,493 80,441,481 Benefits 8,950,726 9,348,981 10,751,328 12,364,027 13,600,430 Professional & Technical Services 1,217,200 1,725,163 1,742,415 1,759,839 1,775,678 Property Services 3,212,384 3,267,835 3,300,513 3,333,518 3,336,852 Purchased Services 2,088,848 2,181,995 2,203,815 2,225,853 2,248,112 Supplies/Materials 3,729,382 4,049,965 4,454,961 4,900,457 5,390,503 Property & Equipment 294, , , , ,740 Other Objects 213, , , , ,184 Other Use of Funds - 24, Total Expenditures $ 92,348,762 $ 95,446,946 $ 99,578,046 $ 103,673,211 $ 107,457,980 Net Revenues (Expenditures) $ 868,314 $ (0) $ (790,457) $ (1,428,057) $ (1,634,245) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments 468, Increase (Decrease) of Reserve for Encumbrances (372,690) Total Transfers To (From) Fund Balance $ 95,369 $ - $ - $ - $ - Beginning Fund Balance $ 3,921,867 $ 4,885,550 $ 4,885,550 $ 4,095,093 $ 2,667,036 Ending Fund Balance $ 4,885,550 $ 4,885,550 $ 4,095,093 $ 2,667,036 $ 1,032,791 General Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 7

13 Transportation Fund The Transportation Fund is used to pay for the transportation of students between home and school. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 955,059 1,048,477 1,069,447 1,090,836 1,112,652 Yellowstone County 762, , , , ,378 District Revenue 2,353,363 3,284,395 3,350,083 3,417,085 3,536,682 Total Revenues $ 4,070,984 $ 5,196,372 $ 5,313,252 $ 5,432,923 $ 5,606,713 Salaries 897, , , ,115 1,013,843 Benefits 219, , , , ,968 Professional & Technical Services 7,223 11,297 11,636 11,927 12,225 Property Services Purchased Services 3,381,780 3,802,884 3,916,971 4,014,895 4,115,268 Supplies/Materials 43, , , , ,971 Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 4,550,564 $ 5,196,372 $ 5,352,263 $ 5,486,070 $ 5,623,222 Net Revenues (Expenditures) $ (479,579) $ 0 $ (39,011) $ (53,147) $ (16,509) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments 46, Increase (Decrease) of Reserve for Encumbrances 36, Total Transfers To (From) Fund Balance $ 83,107 $ - $ - $ - $ - Beginning Fund Balance $ 768,985 $ 372,513 $ 372,513 $ 333,502 $ 280,355 Ending Fund Balance $ 372,513 $ 372,513 $ 333,502 $ 280,355 $ 263,846 Transportation Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 8

14 Tuition Fund The Tuition Fund is used to pay tuition for Billings Public Schools students attending other districts. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 65,008 22,500 46,853 48,259 49,224 Yellowstone County District Revenue 417, , , , ,594 Total Revenues 482, , , , ,818 Salaries Benefits Professional & Technical Services Property Services Purchased Services 390, , , , ,396 Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures 390, , , , ,396 Net Revenues (Expenditures) 91,750 (251,839) (19,277) (19,194) (19,578) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 251, Material Prior Period Revenue Adjustment 2, Total Transfers To (From) Fund Balance 2, , Beginning Fund Balance 157, ,838 - (19,277) (38,470) Ending Fund Balance 251,838 - (19,277) (38,470) (58,048) Tuition Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 9

15 Retirement Fund The Retirement Fund is used to pay the District s portion of Social Security, Teachers Retirement, Public Employees Retirement, and Unemployment Insurance for all District employees. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana Yellowstone County 11,946,780 13,119,475 13,032,916 13,423,904 13,826,621 District Revenue 87,690 80,525 90,177 92,882 95,669 Total Revenues $ 12,034,469 $ 13,200,000 $ 13,123,093 $ 13,516,786 $ 13,922,290 Salaries Benefits 12,875,340 13,200,000 13,208,205 13,604,451 14,012,585 Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 12,875,340 $ 13,200,000 $ 13,208,205 $ 13,604,451 $ 14,012,585 Net Revenues (Expenditures) $ (840,871) $ - $ (85,112) $ (87,665) $ (90,295) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ - Beginning Fund Balance $ 4,415,579 $ 3,574,708 $ 3,574,708 $ 3,489,597 $ 3,401,932 Ending Fund Balance $ 3,574,708 $ 3,574,708 $ 3,489,597 $ 3,401,932 $ 3,311,637 Retirement Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 10

16 Adult Education Fund The Adult Education Fund is used to fund the adult education program. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 3,596-15,325 15,632 15,944 Yellowstone County District Revenue 1,188,685 1,700,505 1,213,972 1,238,251 1,263,016 Total Revenues $ 1,192,281 $ 1,700,505 $ 1,229,297 $ 1,253,883 $ 1,278,961 Salaries 786, , , , ,329 Benefits 85, ,779 83,055 84,717 86,411 Professional & Technical Services 18,149 34,509 31,079 31,701 32,335 Property Services 4,076 54,552 12,677 12,931 13,189 Purchased Services 113, , , , ,524 Supplies/Materials 152,961 64, , , ,876 Property & Equipment - 59, , , ,940 Other Objects - 2,650 1,485 1,515 1,545 Other Use of Funds - 540, Total Expenditures $ 1,160,810 $ 2,100,000 $ 1,358,276 $ 1,385,441 $ 1,413,150 Net Revenues (Expenditures) $ 31,471 $ (399,495) $ (128,979) $ (131,558) $ (134,190) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 26, Residual Equity Transfer (296,000) 377, Increase (Decrease) of Reserve for Encumbrances (3,111) Total Transfers To (From) Fund Balance $ (272,361) $ 377,603 $ - $ - $ - Beginning Fund Balance $ 1,375,809 $ 1,134,920 $ 735,424 $ 606,445 $ 474,887 Ending Fund Balance $ 1,134,920 $ 735,424 $ 606,445 $ 474,887 $ 340,697 Adult Education Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 11

17 Technology Fund The Technology Fund is used for the purchase, rental, repair, maintenance, and depreciation of technological equipment. The Technology Fund cannot be forecast because of the unpredictable nature of funding which is based on the sale of resources off of school trust land. For that reason, the combined statement of revenues, expenditures and changes in fund balance is shown rather than a forecast. FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana - 311, , ,977 89, ,516 Yellowstone County District Revenue 4,203 7,988 9,837 10,357 4,767 - Federal Grants 170, Total Revenues $ 174,824 $ 319,222 $ 488,329 $ 467,333 93, ,516 Salaries 1, Benefits Professional & Technical Services - 21, , ,415 Property Services Purchased Services - 10,729 3, Supplies/Materials 199,621 82, , ,721 41,659 78,974 Property & Equipment 42,132 46, ,310 48,246 3, ,741 Other Objects Other Use of Funds Total Expenditures $ 242,873 $ 161,333 $ 625,147 $ 481,176 45, ,130 Net Revenues (Expenditures) $ (68,049) $ 157,889 $ (136,818) $ (13,842) 48,476 (195,614) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,614 Increase (Decrease) of Reserve for Encumbrances - 1,350 (1,350) - - Total Transfers To (From) Fund Balance $ - $ 1,350 $ (1,350) $ - $ - $ 195,614 Beginning Fund Balance $ 207,957 $ 139,908 $ 299,147 $ 147,138 $ 195,614 $ 195,614 Ending Fund Balance $ 139,908 $ 299,147 $ 160,980 $ 195,614 $ 244,090 $ (0) Technology Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY04 FY05 FY06 FY07 FY08 FY09 Budget Actual Actual Actual Actual Actual 12

18 Flexibility Fund The Flexibility Fund is a "special fund" authorized by the 2002 legislature and funded by the State, allowing districts wide latitude in spending. It is funded using a discretionary grant from the state. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 332, , , , ,390 Yellowstone County District Revenue 15,209-6,200 6,386 6,578 Total Revenues $ 347,766 $ 335,084 $ 346,311 $ 351,598 $ 356,968 Salaries 88, , , , ,605 Benefits 20,692 83,425 41,808 43,062 44,354 Professional & Technical Services 96, ,133 99, , ,836 Property Services Purchased Services Supplies/Materials - 189, Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 206,387 $ 964,980 $ 331,601 $ 341,549 $ 351,795 Net Revenues (Expenditures) $ 141,379 $ (629,896) $ 14,710 $ 10,050 $ 5,173 TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer 296, , Increase (Decrease) of Reserve for Encumbrances Total Transfers To (From) Fund Balance $ 296,000 $ 629,896 $ - $ - $ - Beginning Fund Balance $ 192,517 $ 629,897 $ 0 $ 14,710 $ 24,760 Ending Fund Balance $ 629,897 $ 0 $ 14,710 $ 24,760 $ 29,933 Flexibility Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 13

19 Debt Service Fund The Debt Service Fund is used to pay interest and principal on outstanding bonds and special improvement district assessments. There are no plans for debt at this time. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana 5,348-2,469,190 2,469,190 1,485,431 Yellowstone County District Revenue 1,468,326-3,461,760 3,461,760 1,886,519 Total Revenues 1,473,674-5,930,950 5,930,950 3,371,950 Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects 2,693,750 27,710 5,930,950 5,930,950 3,394,338 Other Use of Funds Total Expenditures 2,693,750 27,710 5,930,950 5,930,950 3,394,338 Net Revenues (Expenditures) (1,220,076) (27,710) (22,388) - (22,388) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 27, Material Prior Period Revenue Adjustment 22, Total Transfers To (From) Fund Balance 22,388 27, Beginning Fund Balance 1,247,787 50,098 $ 22,388 $ 22,388 $ 22,388 Ending Fund Balance 50,098 22,388 $ 22,388 $ 22,388 $ (0) The District is proposing a 10-year $35,000,000 general obligation bond in the elementary district and a 2-year $4,825,000 general obligation bond in the high school district in September of Combined, the bonds would cost the average tax payer with a $200,000 home and estimated annual tax increase of $ Debt Service Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 14

20 Building Reserve Fund The Building Reserve Fund is used to pay for major maintenance, remodeling, and building projects. FY08 FY09 FY10 F11 FY12 REVENUES Actual Budget Forecast Forecast Forecast State of Montana Yellowstone County District Revenue 46, Total Revenues $ 46,326 $ - $ - $ - $ - Salaries Benefits Professional & Technical Services 17, Property Services 304, Purchased Services Supplies/Materials 23, Property & Equipment 751, , Other Objects Other Use of Funds Total Expenditures $ 1,098,317 $ 693,058 $ - $ - $ - Net Revenues (Expenditures) $ (1,051,992) $ (693,058) $ - $ - $ - TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 1, Residual Equity Transfer - 693, Total Transfers To (From) Fund Balance $ 1,039 $ 693,034 $ - $ - $ - Beginning Fund Balance $ 1,744,011 $ 693,058 $ - $ - $ - Ending Fund Balance $ 693,058 $ 0 $ - $ - $ - Building Reserve Fund Revenue vs. Expenditure Trend Total Expenditures Total Revenues FY08 FY09 FY10 F11 FY12 Forecast Forecast Forecast Budget Actual 15

21 Overview of Non-Budgeted Funds In an effort to create complete financial transparency, Billings Public Schools has included an overview of the District s non-budgeted funds. Combined statements of revenues & expenditures for each non-budgeted fund in the District can be found in the Financial Section. The following combined statement of revenues & expenditures represent all non-budgeted funds collectively. All elementary non-budgeted funds as well as all high school non-budgeted funds conclude the overview. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Billings Public Schools Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 13,012,994 12,541,845 12,113,552 12,087,584 Other Sources 367, ,559 2,459, ,214 State of Montana 2,098,052 4,939,644 4,345,751 2,144,708 Yellowstone County District Revenue 22,177,681 22,956,648 24,609,676 24,783,424 Total Revenues $ 37,655,727 $ 40,685,696 $ 43,528,007 $ 39,117,930 Salaries 8,509,830 9,053,024 8,885,777 8,594,187 Benefits 2,210,735 2,277,238 2,263,267 2,228,710 Professional & Technical Services 17,347,135 15,907,568 16,504,741 11,814,323 Property Services 886, ,664 1,076, ,543 Purchased Services 1,607,531 4,460,595 2,901,930 2,098,230 Supplies/Materials 4,761,951 3,329,159 5,399,655 12,067,334 Property & Equipment 8,620,253 2,064,241 2,025, ,500 Other Objects 259, , , ,405 Other Use of Funds 232, , , ,747 Total Expenditures $ 44,436,134 $ 38,500,961 $ 39,733,906 $ 38,445,979 Net Revenues (Expenditures) $ (6,780,407) $ 2,184,735 $ 3,794,101 $ 671,951 TRANSFERS TO (FROM) FUND BALANCE Increase/Decrease of Reserves for Inventories (10,572) (67,512) (10,806) (41,579) Increase/Decrease of Reserves for Encumbrances (16,346) (15,138) 125,616 - Material Prior Period Revenue Adjustments 37, ,009 Residual Equity Transfer 9,722 25,064 26,502 12,248,002 Total Transfers To (From) Fund Balance $ 20,407 $ (57,586) $ 141,312 $ 12,252,431 16

22 Elementary District Non-Budgeted Funds BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 9,951,400 9,464,611 9,176,496 9,681,322 Other Sources 247,540 47,559 2,403,275 97,214 State of Montana 1,663,360 3,416,903 3,813,625 2,066,551 Yellowstone County District Revenue 1,537,416 2,117,105 2,178,078 2,244,101 Total Revenues $ 13,399,716 $ 15,046,178 $ 17,571,474 $ 14,089,189 Salaries 6,892,705 7,401,427 7,589,774 7,181,708 Benefits 1,904,102 1,995,241 2,027,761 1,976,498 Professional & Technical Services 801, , , ,871 Property Services 275, , , ,848 Purchased Services 648, , , ,684 Supplies/Materials 1,961,883 1,753,764 2,266,342 7,659,486 Property & Equipment 8,173,510 1,394,975 1,497, ,440 Other Objects 48,451 76, , ,471 Other Use of Funds 183, , , ,877 Total Expenditures $ 20,890,292 $ 14,288,732 $ 15,178,380 $ 18,777,882 Net Revenues (Expenditures) $ (7,489,733) $ 756,883 $ 2,450,180 $ (4,688,693) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment Residual Equity Transfer 9,722 25,064 26,502 6,273,155 Increase (Decrease) of Reserve for Encumbrances 15,138 (15,138) 125,616 - Total Transfers To (From) Fund Balance $ 25,000 $ 9,926 $ 152,118 $ 6,273,155 17

23 High School District Non-Budgeted Funds BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 3,061,594 3,087,070 2,937,056 2,406,261 Other Sources 119, , ,456 5,000 State of Montana 434,692 1,507, ,126 78,157 Yellowstone County District Revenue 20,639,422 20,845,773 22,147,325 22,539,323 Total Revenues $ 24,255,168 $ 25,640,584 $ 26,229,962 $ 25,028,741 Salaries 1,363,758 1,693,459 1,554, ,577 Benefits 206, , ,338 86,725 Professional & Technical Services 16,576,500 15,266,517 16,098,731 14,216,095 Property Services 376, , , ,641 Purchased Services 1,080,105 2,303,388 2,466, ,851 Supplies/Materials 3,273,218 3,245,888 3,182,324 5,353,740 Property & Equipment 452, , , ,903 Other Objects 168, , ,100 92,416 Other Use of Funds 48,071 39,843 17, ,133 Total Expenditures $ 23,545,842 $ 24,242,135 $ 24,886,042 $ 21,987,081 Net Revenues (Expenditures) $ 709,326 $ 1,427,852 $ 1,343,921 $ 3,041,660 TRANSFERS TO (FROM) FUND BALANCE Increase/Decrease of Reserves for Inventories (10,572) (67,127) (10,806) (41,579) Increase/Decrease of Reserves for Encumbrances (31,484) (385) - - Material Prior Period Revenue Adjustments 37, ,009 Residual Equity Transfer ,974,847 Total Transfers To (From) Fund Balance $ (4,593) $ (67,512) $ (10,806) $ 5,979,277 18

24 Student Enrollment Trends and Forecast Enrollment forecasts are computed through a linear regression model. Future values are extrapolated to extend a straight line that best describes the existing historical data. The following chart illustrates previous and current enrollment in Billings Public Schools. These figures are taken from the annual October count of students. Billings Public Schools Historical Enrollment Per Calendar Year Elementary District 10,166 10,197 10,154 10,136 10,117 10,078 9,943 9,947 10,201 High School District 5,524 5,535 5,624 5,601 5,599 5,626 5,613 5,467 5,280 Total Enrollment 15,690 15,732 15,778 15,737 15,716 15,704 15,556 15,414 15,481 The following graph depicts the forecast of total enrollment in the District through calendar year Enrollment is projected to drop slightly through the calendar year ,000 15,500 Billings Public Schools Total Enrollment History and Forecast y = x ,000 14,500 14,000 Total Enrollment Linear (Total Enrollment) 13,

25 Tax Base and Rate Trends The amount of property tax in Montana is not determined solely by the property's value and is a complicated formula. All residential properties receive a homestead exemption. The homestead exemption incrementally increased from 2003 and is now 34 percent. The property's taxable market value is then multiplied by a tax rate, set by the legislature, to determine its taxable value. The taxable value is then multiplied by the mill levy. Example: Take a home with a market value of $200,000. A 34 percent homestead exemption is applied to reduce the net assessed value to $68,000. The $68,000 is multiplied by the tax rate of 3.46 percent, which yields a taxable value of $4, The $4, is multiplied times the mills. In this example, let's assume it's a total of mills, which would provide for property taxes of $ for the tax year. The following chart displays a typical homeowner s property tax burden for eight years. BILLINGS PUBLIC SCHOOLS TOTAL IMPACT OF CURRENT MILLS Fiscal Year Market Value of Home $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Less Homestead Exemption 62,000 62,000 62,800 64,000 65,200 66,400 68,000 68,000 Taxable Market Value 138, , , , , , , ,000 Taxable Valuation of Home 4,775 4,775 4,747 4,706 4,664 4,623 4,567 4,567 Total Property Tax $ 902 $ 1,007 $ 1,010 $ 997 $ 993 $ 883 $ 885 $ 878 Tax Burden of Average Homeowner $1,007 $1,010 $997 $993 $902 $883 $885 $ Total Property Tax 20

26 Personnel Resource Changes The following chart illustrates 6 years of the District s staffing level FTE (Full-Time Equivalency). BILLINGS PUBLIC SCHOOLS District Staffing Levels FY04 FY05 FY06 FY07 FY08 FY09 EMPLOYEE GROUPS FTE FTE FTE FTE FTE Budget Administration Support Staff Certified Staff 1, , , , , , Contract Support Staff Operation and Maintenance Other Non-Union Total FTE 1, , , , , , The District s staffing levels have decreased from FY08 by FTE, most notably in support staff, and certified staff. District FTE was reduced largely through attrition. The District has closed one elementary school due to budgetary concerns. Rimrock Elementary school was reopened as a kindergarten center in FY08 and closed again for FY09. Beartooth Elementary school reopened last year as a k-6 school after being closed for six years to save funding. That school remains open as a step toward returning to neighborhood schools. 1, Billings Public Schools Staffing Trend 1, , , , , , , FY04 FY05 FY06 FY07 FY08 FY09 Total FTE 21

27 Approximately 86% of all District staff is directly serving students as either a certified staff or in a support position. Contract Support Staff 1% Operation and Maintenance Other 7% 0% Non-Union 2% Administration 4% Support Staff 20% Certified Staff 66% FY 09 District Staff % Breakdown Changes in Debt of Billings Public Schools The amount of total indebtedness of the District cannot exceed a legal limit of 50% of the combined taxable value of both the High School and the Elementary Districts. This includes other debts the District is paying off through debt service. In FY09, the combined taxable value of both districts is $380,447,477. Long-Term Debt BILLINGS PUBLIC SCHOOLS Long-Term Debt Year Ended June 30, 2008 Balance Balance Due Within July 1, 2007 Additions Retirements June 30, 2008 One Year General obligation debt $ 2,615,000 $ - $ (2,615,000) $ - $ - Notes payable 327, ,564 (67,454) 668, ,143 Compensated absences 10,188,899 4,044,149 (3,392,768) 10,840,280 1,084,028 Service credit and termination pay benefits 3,393,708 4,016,296 (2,627,003) 4,783,001 - Other post employment benefits 1,491,000 2,736,000 (1,174,000) 3,053,000 - $ 18,015,683 $ 11,205,009 $ (9,876,225) $ 19,344,467 $ 1,219,171 22

28 General Obligation Debt The District issued $10,000,000 in general obligation bonds during fiscal year 2004 to provide funds for the remodel of certain elementary buildings. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows: BILLINGS PUBLIC SCHOOLS General Obligation Debt Year Ended June 30, 2008 Original Interest Balance Amount Term Rate June 30, elementary bonds $ 10,000,000 4 years % $ - Notes Payable-State Board of Investments During June 2008, the District borrowed an additional $408,564 on the State Board of Investments loan to purchase 20 new vehicles. Interest and principal payments are due semiannually. The interest rate on the notes was 4.25% at June 30, The interest rate is adjusted in February of each year and cannot exceed 15% per annum. Annual debt service requirements to maturity for general obligation bonds and notes payable are as follows: BILLINGS PUBLIC SCHOOLS Notes Payable-State Board of Investments Year Ended June 30, 2008 Year ending Notes Payable June 30, Principal Interest 2009 $ 135,143 $ 25, ,345 21, ,003 14, ,764 8, ,954 4, , $ 668,186 $ 74,549 23

29 Academic Efficiency of Dollars Spent The No Child Left Behind Act is one of the most important federal laws regarding public education. The law is designed to hold schools accountable for the performance of students. The goal is for all children in the public school system to be proficient in reading and math by Because of this, Billings Public Schools has made a conscious decision to allocate funding by tying it to proven programming that enhances the performance of students. The idea behind the new budgeting process, Budgeting for Results (BFR), is to align resources and services with the core mission of increasing student achievement. The District will only fund programs which have been proven through empirical data to increase student achievement. Although the accountability mechanism of NCLB highlights the use of test scores to measure the District s quality of education rather than the ratio of spending-per pupil, the District has taken steps to increase spending per pupil. In FY09, the proposed budget will provide funding for approximately 15,481 students. This represents a cost of about $7,661 per student, an increase of approximately $176 from last year. The graph below shows how the District s budget, by function, will be used to support the typical student. How Will the Typical Student Use $7,661? Student Transportation 4% Athletics 2% Building Improvement/Facility Acquisition 1% Operations and Maintenance 9% Business Services 1% School Administration 7% General Administration 2% Instruction 61% Improvement of Instructional Services 5% Support Services 6% 24

30 The correlation between spending per pupil and performance is unclear; however, Billings Public Schools is making progress in raising Adequate Yearly Progress proficiency scores in reading and math. The District s high school graduates continue to excel on the ACT college entrance exam. Since FY04, Billings Public Schools graduates have scored higher on the ACT college entrance exam than the national and state of Montana average. The graph below displays the District s graduate s 5-year trend of higher than average scores. 23 ACT Composite Score 5-Year Trend Score FY04 FY05 FY06 FY07 FY08 National State District 25

31 Profile of Billings Public Schools 2009 Budget (Fiscal Year July 1, 2008 June 30, 2009) School Board Members District Administration 26

32 Organizational Chart 27

33 Meritorious Budget Award FY07 Budget 28

34 29

35 Profile of Billings, Montana Billings is located on the Yellowstone River in Yellowstone County on the eastern edge of the south-central region of Montana. The recorded history of Billings began in a settlement originally called Clark s Fork Bottom. In 1882, the Northern Pacific Railroad surveyed the area. To accommodate railroad engineers for Northern Pacific, three permanent structures were built in May of 1882.The community was soon renamed after Frederick Billings, president of the Northern Pacific Railroad. Nearly overnight, Billings grew to 2,000 inhabitants, thus earning the nickname "The Magic City" because its growth was unparalleled. Billings has experienced continued growth in the recent years, never declining in population like most of the rest of the eastern portion of the state. It has avoided this trend by being in close proximity to the mountainous regions of Wyoming and Montana, making it a tourist destination. The City of Billings encompasses about 33 square miles, while Yellowstone County covers a 2,666 square mile area. Billings is the largest city in Montana, with a population of around 101,182 people. According to the Billings Area Chamber of Commerce, the District is the second largest employer in the city of Billings. History of Billings Public Schools The first classes offered for students began in The town did not have a permanent school structure until a log schoolhouse was built in School District #2 was created the following year when a school board was elected. The first permanent school structure, called North School, began holding classes in A second school, South School, was built and opened in Billings Public Schools has since sold both buildings. 30

36 Instructional Sites and Enrollment The District s instructional program encompasses kindergarten through 12 th grade, as well as adult education. The Elementary District includes grades K-8, while grades 9-12 are included in the High School District. There are 30 main instructional sites in the District: 22 elementary, 4 middle schools, and 3 high schools. Students from West High School and Senior High School may also attend off-campus alternative classes at the Career Center. To ease overcrowding, 9 th grade students from Senior High School are bused to classes at the Lincoln Center which is also used for administrative offices and adult education. The Adult Education Center offers GED, high school diploma, pre-college, and employment skills preparation classes. Billings Public Schools Enrollment, October 2008 Elementary District Alkali Creek 375 Arrowhead 452 Beartooth 382 Bench 324 Big Sky 422 Bitterroot 316 Boulder 417 Broadwater 331 Burlington 291 Central Heights 334 Eagle Cliffs 395 Highland 298 McKinley 303 Meadowlark 542 Miles Avenue 371 Newman 277 Orchard 325 Poly Drive 298 Ponderosa 402 Rose Park 273 Sandstone 416 Washington 289 Castle Rock 727 Lewis and Clark 591 Riverside 506 Will James 544 ELEMENTARY TOTAL 10,201 High School District Senior 1,833 Skyview 1,451 West 1,996 HIGH SCHOOL TOTAL 5,280 31

37 Organizational Chart 32

38 Mission Statement In partnership with our community, our mission is to educate individuals of all ages to become caring, competent, and contributing members of the community and world. Election and Purpose of the Board The Billings Public School District actually comprises two separate school districts with a unified board of trustees. The Elementary District encompasses grades K-8 while the High School District includes grades The Board of Trustees of Billings Elementary School District 2 and Billings High School District 2 is the governmental entity established by the State of Montana to plan and direct all aspects of the District s operations, to the end that students shall have ample opportunity to achieve their individual and collective learning potentials. The legal names of these school districts are Billings Elementary School District 2, Yellowstone County, State of Montana, and Billings High School District 2, Yellowstone County, State of Montana. The Districts are classified as first-class districts and are operated according to the laws and regulations pertaining to Elementary and High School Districts. Its legal powers, duties, and responsibilities are derived from the Montana Constitution and state statutes and regulations. The School Laws of Montana and the administrative rules of the Board of Public Education and the Office of Superintendent of Public Instruction delineate the legal powers, duties, and responsibilities of the Board. Billings Elementary School District 2 is governed by a Board of Trustees consisting of seven (7) members. Billings High School District 2 is governed by the same seven (7) Elementary Board members plus two (2) Board members elected from outlying areas in the High School District. All trustees shall participate on an equal basis with other trustees in the governance of the high schools maintained by the District. Only those trustees elected from the Elementary District may participate in the governance of the elementary schools maintained by the District. Official action by Board members must occur at a duly called and legally conducted meeting. Board elections shall take place on the first (1st) Tuesday after the first (1st) Monday in May of each year. Any person who is a qualified voter of the District is legally qualified to become a trustee. After issuance of election certificates to newly elected trustees in May, and on or before the third (3rd) Saturday in May, the Board shall elect from among its members a Chair and a Vice Chair to serve one-(1)-year terms. Unless otherwise specified, all meetings will take place in the boardroom of the Lincoln Center, at 415 North 30 th in Billings. Regular meetings shall take place at 5:30 p.m. on the third (3rd) Monday of each month, or at other times and places determined by a majority vote. Between July 1 and August 4 of each year, the Clerk shall publish a notice stating the date, time, and place trustees will meet for the purpose of considering and adopting a final budget for the District. The Board approves budgets that support the immediate and long-range goals and established priorities within instructional, non-instructional, and administrative programs. The Board requires that, before presentation of a proposed budget for adoption, the Superintendent will prepare, for Board consideration, appropriate documentation supporting recommendations for meeting District needs within the limits of anticipated revenues. 33

39 Financial Management Policy Goals Since educational programs are dependent on adequate funding and the proper management of those funds, District goals can best be attained through efficient fiscal management. As trustee of local, state, and federal funds allocated for use in public education, the Board shall fulfill its responsibility to see that funds are used to achieve the purposes intended. Because of resource limitations, fiscal concerns often overshadow the educational program. Recognizing this, the District must take specific action to ensure that education remains primary. This concept shall be incorporated into Board operations and into all aspects of District management and operation. In the Districts fiscal management, the Board seeks to achieve the following goals: 1. Engage in advance planning, with staff and community involvement, to develop budgets that will achieve the greatest educational returns in relation to dollars expended. 2. Establish levels of funding which shall provide superior education for the Districts students. 3. Provide timely and appropriate information to staff that has fiscal responsibilities. 4. Establish efficient procedures in all areas of fiscal management. Budget and Program Planning The Board approves budgets that support the immediate and long-range goals and established priorities within instructional, non-instructional, and administrative programs. The Board requires that, before presentation of a proposed budget for adoption, the Superintendent will prepare, for Board consideration, appropriate documentation supporting recommendations for meeting District needs within the limits of anticipated revenues. Once adopted by the Board, the operating budget shall be administered by the Superintendents designees. Accounting System Design The District accounting system shall be established to present with full disclosure the financial position and results of the financial operations of the District funds and account groups in conformity with generally accepted accounting principles. The accounting system will conform to the accounting and reporting manual published by the Office of Public Instruction. The Board requires that financial reports reflect financial activity and status of District fund accounts and are in a format readily understandable to the Board and to the public. The District accounting system shall be organized on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. All related liabilities and residual equities or balances and changes therein are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Budgeted and Non-Budgeted Funds A budgeted fund is any fund for which a budget must be adopted in order to expend money from the fund. The General Fund, Transportation Fund, Bus Depreciation Reserve Fund, Tuition Fund, Retirement Fund, Debt Service Fund, Building Reserve Fund, Adult Education Fund, Non-operating Funds, and any other funds so designated by the Legislature are budgeted funds. 34

40 A non-budgeted fund is any fund for which a budget is not required in order to expend money on deposit in the fund. The School Food Services Fund, Miscellaneous Programs Fund, Building Fund, Lease or Rental Agreement Fund, Traffic Education Fund, Interlocal Cooperative Fund, Internal Service Fund, Impact Aid Fund, Enterprise Fund, Agency Fund, Extracurricular Fund, Endowment Fund, and any other funds so designated by the Legislature are non-budgeted funds. Assessment The Board requires appropriate interim financial statements and reports of financial position, operating results, and other pertinent information prepared to facilitate management and control of financial operations. A comprehensive audit shall be conducted annually, in accordance with Montana law and with generally accepted governmental auditing standards. The Superintendent will provide the Board with an annual assessment of budget performance for the fiscal year just ended, comparing adopted budgets to actual revenue collected and expenditures made and incurred. Budget Adjustments The Board may authorize the transfer of any amount in excess of that required in a line item to another line item within the same fund. The Board authorizes the Superintendent to transfer line item amounts within the same budgeted fund to meet special line item needs, provided the Superintendent presents to the Board for its advice and consent any proposed line item transfer the amount of which is equal to or greater than the lesser of (a) $10,000 or (b) one hundred percent (100%) of the line item. The Board and the District are limited to incurring expenditures to the total budgeted amounts for all budgeted funds as adopted in a final budget for an ensuing fiscal year. The Board, with timely notice of a public meeting and with a majority vote of those present, may declare by resolution that a budget amendment is necessary for reasons specified in , MCA. In approving such a resolution, the Board will include a statement of facts for needing a budget amendment, an estimated amount of funds needed, and the time and place the Board will meet for the purpose of considering and adopting a budget amendment. The District will apply for state financial aid to supplement an amount to be collected from local taxes. Budget Development Process Historically, the District developed the budget using a traditional budget process. This process failed to include significant community and school board trustee input. Additionally, the District was unable to measure the critical strategies and goals which make school districts successful. With that said, Billings Public Schools began developing a new budgeting process called Budgeting for Results (BFR) in The new process enables Billings Public Schools to align resources with a clear set of measurable District-wide results to deliver the best results for students. The District-wide results are the product of extensive community, parent, student, staff and board input. The 6 District-wide results are the major goals and objectives of Billings Public Schools. 35

41 Desired outcomes in initiating Budgeting for Results includes developing a balanced budget that funds the programs and activities most likely to deliver the best results for students and creating an easily understood budget for District taxpayers. With the short-timeline and significant need for baseline data to formulate indicators in fully achieving Budgeting for Results, the District developed a hybrid budgeting process for FY09. What this means is, BFR was implemented on all operational budget decisions and the traditional budget process was continued on all instructional budget decisions. As this was a difficult and confusing method in developing the budget, the District plans on fully implementing BFR for the FY10 budget. The District-wide results will remain the same for FY10. Major Goals and Objectives The following 6 District-wide results have been adopted by the Board of Trustees. The first key steps in achieving these goals are obtaining baseline data to provide a comparison for assessment. The cost of the goals cannot be estimated until a benchmark is established. 1. Student Competence: All students are competent in the core subjects of reading, writing, math, and science at a level appropriate to their age and ability and have appropriate options for education other than core subjects. Indicators for success are an increase in the percentage of the following factors: Students who demonstrate at least 1 year s worth of learning for 1 year in school. Students who demonstrate age or grade-specific proficiency in core subjects. Students who graduate in expected number of years after entering 9 th grade. Parents who are satisfied with their child s learning in school. Students in classes deemed elective, advanced, and/or intervention. 2. Student Post-Secondary Readiness: All graduates are employable and/or ready to succeed in their post-secondary education or training. Indicators for success are an increase in the percentage of the following factors: Seniors who have taken the ACT or SAT. Seniors who score at or above the national average on the ACT or SAT. Graduates who demonstrate they possess basic workplace competencies. Graduates who are either employed or enrolled in a post secondary program within 1 year of graduating. 3. Student Well-Roundedness: All students become well-rounded citizens. Indicators for success are an increase in the percentage of the following factors: Students participating in extracurricular and volunteer activities. Students who indicate they are avoiding risky and/or unhealthy behaviors. 36

42 Eligible students and recent graduates who vote. 4. Student Enthusiasm: All students are enthusiastic about learning, now and later in life. Indicators for success are an increase in the percentage of the following factors: Students who report that they enjoy school and learning. Students who earn more than the minimum number of academic credits during the school year. 5. Student Safety: All students are safe at school and on their way to it. Indicators for success are an increase in the percentage of the following factors: Parents, students, and staff who report that they feel safe at school. Rate of reported criminal activity at school buildings. District facilities that are judged to be structurally safe. 6. District Fiscal Responsibility: The District earns the public s trust by spending resources wisely and acting in the best interest of students. Indicators for success are an increase in the percentage of the following factors: Billings residents who believe the District is spending their tax dollars wisely. Ratio of current year expenses to current year revenues. Budget Meeting Between July 1 and August 4 of each year, the Clerk shall publish a notice stating the date, time, and place trustees will meet for the purpose of considering and adopting a final budget for the District, stating that the meeting of the trustees may be continued from day to day until final adoption of a District budget and stating that any taxpayer in the District may appear at the meeting and be heard for or against any part of the budget. This notice shall be published in newspapers of general circulation in the Billings area. On the date and at the time and place stated in the published notice (on or before August 15), trustees shall meet to consider all budget information and any attachments required by law. The meeting may continue from day to day; however, the Board must adopt a final budget not later than the fourth (4th) Monday in August. Budget Calendar The preparation of the budget begins in August with the development of the budget calendar. The budget calendar is a schedule of all critical budget-related activities and serves as a communication device between District staff, the School Board, and the community. It includes a list of responsibilities of the District as well as the corresponding month and group or person responsible for completion. 37

43 August Responsibility 1. Gather student, personnel, program, cost, and economic data. Chief Financial Officer (CFO) 2. Develop the proposed budget calendar. September 1. Orientation & planning meeting with the school board and other groups Superintendent directly involved with the budget process. CFO 2. Develop assumptions for revenue and expenditure forecast. Central Office Leadership Team (COLT) 3. Develop a five-year enrollment forecast. 4. Develop a five-year revenue and expenditure forecast. October 1. Fall enrollment count. COLT 2. Update revenue forecast with fall enrollment count. Board of Trustees 3. Board of trustees and Central Office Leadership Team retreat. Superintendent November - December 1. Board discussion on budgeting for outcome. CFO 2. Refine revenue and expenditure forecast. Board of Trustees 3. Develop FTE salary data. January - February 1. Calculate the maintenance of effort. COLT 2. Prepare expenditure requests for operating and capital budgets. Staff 3. Submit expenditure requests. CFO 4. Spring enrollment counts. Board of Trustees 5. Update revenue forecast with spring enrollment count. Negotiation Team 6. Consolidate expenditure requests into overall district totals. 7. Project staffing, salary, and benefit costs. 8. Develop preliminary revenue estimates by sources of revenue. 9. Plan and initiate collective bargaining negotiations. 10. Board reviews community response and makes decision regarding levy election. March 1. Trustee candidate filing deadline. Board of Trustees 2. Review of expenditure request and estimated revenues. COLT 3. Board work session. 4. Discuss expenditure requests and adjust as necessary to balance with revenues. 5. Preliminary budget data sheets from the Office of Public Instruction public discussion. April 1. Resolution for school election deadline. Board of Trustees 2. Finalize district-wide results. Staff 3. Pepare budget document and appropriate supplementary information. 4. Present complete budget document to the school board. May 1. Board reorganization. Board of Trustees 2. Review and hold public hearing on proposed budget. 3. Make revisions on proposed budget as appropriate. June 1. Tenured and non-tenured teacher notice of termination or reelection. CFO 2. Fiscal year end. Human Resource Services 3. Trustees may adopt a resolution for a budget amendment due to causes other than a usual enrollment increase. July 1. Publish notice of final budget hearing. Clerk 2. Preliminay budget to the board. August 1. Update revenue estimates with new information from the tax CFO assessor, state legislature, department of education, and federal Board of Trustees government agencies. 2. Board of Trustees adopt budget. 3. Close out accounts for the year completed. 4. Trustees Financial Summary due to County Superintendent. 5. Budget report due to the County Superintendent. 38

44 Capital Improvement Program Billings Public Schools currently does not have a recognized Capital Improvement Program (CIP) in place. In recognizing the many benefits a CIP provides, the District is currently in the planning stages of implementing a capital improvement plan. This includes purchasing capital improvement software, forming committees and writing policy. Policy awaiting Board approval is as follows: A five-year Capital Improvement Program will be updated annually and include the cost of construction and operating expenditures. No Capital Improvement Project will be authorized until full cash funding has been established to finance the project. Operating cost of new capital will be reviewed as part of the five-year Capital Improvement Program. Annual expenditure increases will include the cost of maintaining and operating new Capital Improvement Projects brought on-line during the previous fiscal year. The District does not yet implement a CIP; however year-to-year capital projects are planned through various committees and approved by the Board of Trustees. Types of Funds Billings Public Schools establishes a number of separate accounting entities as legally required. The District organizes and operates its accounting system on a fund basis. Each fund is a selfbalancing set of asset, liability, fund equity, revenue, and expenditure accounts to record the flow of cash and other financial resources for a specific purpose or activity. Each fund is accounted for separately. Revenue Account Structure Billings Public Schools revenue account structure is as follows: Revenue Account Structure The account structure for revenue accounts consists of a three digit fund number and a four digit source account. A three digit project reporter is also used for special accounting and reporting purposes. The account structure includes the following dimensions: XXX XXXX XXX Fund Subsidiary Source Project Reporter The first digit of the subsidiary source account number designates the first level of reporting for one of the following six broad categories of revenue sources. The next three digits provide additional summary levels within one of the six categories = Revenue from local sources 2000 = Revenue from county sources 3000 = Revenue from state sources 4000 = Revenue from federal sources 5000 = Other financing sources 6000 = Adjustments to beginning fund balance Expenditure Account Structure Expenditure accounts have a normal debit balance and are used to describe all of the financial resources used during a fiscal year. These accounts are nominal accounts and always begin each 39

45 fiscal year with a zero balance. The account structure for expenditure and other uses accounts includes the following dimensions: XXX xx XXX XXXX XXX XXX Fund Oper Unit Program Function Object Project Reporter Fund: The fund account structure consists of a three digit number. The first digit designates whether the fund is used in (1) the Elementary District or (2) the High School District. The next two digits identify the fund. Operational Unit: The Oper Unit dimension is used as a means of segregating costs by building structure or department. Program: A program is a plan of activities and procedures designed to accomplish a predetermined objective or set of objectives. This dimension provides the District the framework to classify expenditures by program for cost determination purposes. Function: The function dimension describes the type of activity within the fund and program. Expenditures are classified by function to provide comparability and to assist in decision making. Object Code: The object code refers to the good or service obtained. Project Reporter: The project reporter code can be configured in any manner to meet user needs. Budgeted Funds 1. General Fund: Used for the purpose of financing general maintenance and operational costs of a district not financed by other funds. 2. Transportation Fund: Used for the purpose of financing the maintenance and operation of district school buses, contracts with private carriers for school bus service, individual transportation contracts, and any amount necessary for the purchase, rental, or insurance of yellow school buses or operation of the transportation program. 3. Tuition Fund: Used to finance tuition costs for Elementary and High School District students attending schools or detention centers outside their district. 4. Retirement Fund: For the purpose of financing the employer s contribution to the Teachers Retirement System (TRS), the Public Employees Retirement System (PERS), Unemployment Compensation and Social Security. 5. Adult Education Fund: For the purpose of financing adult education with student fees and District mill levies. 6. Technology Fund: To purchase, rent, repair, and maintain technological equipment and to provide technical training for District personnel. 7. Flexibility Fund: For the purpose of paying salaries, operating expenses, building expenses, and purchasing supplies and equipment. 8. Debt Service Fund: For the purpose of paying interest and principal on outstanding bonds and special improvement District (SID) assessments. 9. Building Reserve Fund: For the purpose of financing voter approved building or construction projects funded with District mill levies. 40

46 Non-budgeted Funds 1. Miscellaneous Programs Fund: Used to account for Federal, State and local grants and indirect cost monies received by the District. 2. Compensated Absence Fund: The District established the Compensated Absence Fund to pay any accumulated amount of sick and vacation leave to non-teaching and administrative personnel upon termination of employment. 3. Building Fund: The Building Fund is used to account for the financial resources segregated for the acquisition, construction or repair of major capital facilities. 4. Extracurricular Activities Fund: The Student Extracurricular Activities Fund is used to account for revenue and expenditures involved with extracurricular activities. 5. Private Purpose Trust Fund: The Private Purpose Trust Fund is a Fiduciary Fund. 6. School Food Services Fund: This fund is used to account for the District s food service program. 7. Traffic Education Fund: This fund accounts for expenditures related to Drivers Education and the related tuition charged. 8. Lease-Rental Fund: The Lease-Rental Fund accounts for the revenues and expenditures related to the lease or rental of school property. 9. Self Insurance Fund-Health: This fund is used to account for the insurance premiums collected and claims paid out for employees, retirees and ex-employees on the COBRA plan. 10. Self Insurance Fund-Liability: This fund accounts for revenues collected and deductibles paid out for property and liability claims. 11. Interlocal Agreement Fund: This Fund enables the District to cooperate with other local governmental units on a basis of mutual advantage to provide services and facilities in a manner influencing the needs and development of local communities. Proprietary Fund 1. Internal Service Fund: Used to accumulate and allocate costs internally among the District s various functions. When the District charges customers for the services it provides, whether to outside customers or to other departments of the District, these services are generally reported in proprietary funds. The District uses three internal service funds to account for services provided to the other funds of the District: 1) Warehouse: This fund is used to account for supplies, equipment, and printing provided to other departments of the District. 2) Self Insurance-Health: This fund is used to account for the insurance premiums collected and claims paid out for employees, retirees, and exemployees on the COBRA plan. 3) Self Insurance-Property: This fund is used to account for revenues collected and deductibles paid out for property and liability claims. The Internal Service funds are combined into a single, aggregated presentation. 41

47 42

48 Significant Revenue Sources Montana schools average about 45% of their funding from the state, 25% from local property taxes, 10% from county sources, 9% from non-tax local sources, and 11% from Federal sources. The exact percentage that a district receives from each source depends upon the economic and population conditions of the district. Montana s state funding formula for schools is based on enrollment. Districts with higher enrollment receive more state funding. This shifts the burden of funding education to local residential and small business property taxpayers. Montana depends on local taxpayers the heaviest when it comes to funding the budget. According to U.S Census data, Montana ranked 38 th in the nation for the amount of state revenue per pupil allocated for K-12 education. In 1889, the federal government granted 5.2 million acres of land across Montana for school support. The state Board of Land Commissioners oversees the management of school trust land. The Land Board decides the best means in generating revenue from school trust lands for the trust. Income and interest earnings from school trust lands are set side in a Guarantee Account and appropriated to fund K-12 BASE aid. The Legislature builds these school trust funds into its revenue estimates for schools. If income and interest earnings from the school trust lands exceed the revenue estimates, the state general fund obligation for schools is reduced. The operating budget is comprised of three major revenue sources: state, county, and district revenue. State of Montana: State revenue contributions are calculated using student enrollment figures. In October and February each year, the District reports the number of students enrolled to the Office of Public Instruction (OPI). From these counts, Average Number Belonging (ANB) is calculated. ANB is then used to calculate the per-student entitlement and special education funding that, combined with the basic entitlement, makes up the General Fund budget levels for the following school year. Basic entitlement is the minimum funding the District receives. The rates are determined by the Legislature. Basic entitlement for each high school district is $243,649 in FY09. Each elementary district with an approved 7 th and 8 th grade program will receive $21,922 for grades K-6, plus $62,083 for grades 7-8. Since funding is heavily reliant on enrollment, declining enrollment could place pressure on the District s budgets when the cost of providing an education does not decrease at the same rate as declines in enrollment. Billings Public Schools ANB 7-Year Trend Elementary District High School District 9,972 9,956 9,873 9,828 9,807 10,318 10,271 5,628 5,698 5,749 5,724 5,722 5,707 5,652 FY03 FY04 FY05 FY06 FY07 FY08 FY09 43

49 Yellowstone County: Property taxes and fees in lieu of taxes are the major source of county revenues. Property taxes are computed using a mathematical procedure called a mill rate. Forecasts of future county funding are uncertain at this time. District Revenue: Funded by non-levy revenues such as interest earnings, rental of buildings, property tax reimbursements, coal gross proceeds tax, Montana oil and gas tax, and tuition. The District is required to budget the same amount of non-levy revenue as actually received the previous year. Exceptions require that coal gross proceeds tax, property tax reimbursements and Montana oil and gas tax must instead be estimated using information provided by the state. The spike in revenue in FY06 was the result of a budget amendment in the General Fund of $1,113,660. District revenue, when combined with both Districts, declined in FY07 by $2,848,750 due to letting the Elementary District Building Reserve mill levies lapse which was valued at $2,000,000, annually. Significant Expenditure Sources The operating budget is comprised of 9 major objects: Salaries, Benefits, Professional and Technical Services, Property Services, Purchased Services, Supplies and Materials, Property and Equipment, Other Objects, and Other Use of Funds. The largest expenditure in the District is salaries, followed by benefits. Salary expenses are paid out of the General Fund, Transportation Fund, Adult Education Fund and the Flexibility Fund. The General Fund alone spends approximately 78% of its budget on salaries. Benefits are paid out of the General Fund, Transportation Fund, Retirement Fund, Adult Education Fund and the Flexibility Fund. The Retirement Fund expends 100% of its budget on benefits. Salaries: Amounts paid to employees of the District who are considered to be in positions of a permanent nature or hired temporarily, including personnel substituting for those in permanent positions. Salary expenditures are expected to increase by $6,183,717 in FY08. Benefits: Amounts paid by the District on behalf of employees in accordance with federal and state law or by collective bargaining agreements. Professional and Technical Services: Services which by their nature can be performed by persons or firms with specialized skills and knowledge. Included are the contracted services of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, accountants, etc. Property Services: Services purchased to operate, repair, maintain, and rent property owned and/or used by the District. These services are performed by persons other than District employees. Purchased Services: Amounts paid for services rendered by organizations or personnel not on the payroll of the District other than Professional and Technical Services or Property Services. Supplies and Materials: Amounts paid for items of an expendable nature that are consumed, worn out, or deteriorated in use; or items that lose their identity through fabrication or incorporation into different or more complex units or substances. Property and Equipment: Amounts paid for property and equipment acquisition including: land, land improvements, buildings, major construction services, major equipment, and computer hardware. 44

50 Other Objects: Amounts paid for goods and services not otherwise classified above. Other Use of Funds: This object is reserved for unusual and nonrecurring expenditures. 45

51 Overview of Presentation Billings Public Schools is separated into two distinct governmental entities, the Elementary District and the High School District. The Elementary District encompasses grades K-8, while the High School District includes grades Both the Elementary and the High School District maintain separate budgeted funds. The District maintains 9 individual governmental fund budgets for each District, as follows: General Fund, Transportation Fund, Tuition Fund, Retirement Fund, Adult Education Fund, Technology Fund, Flexibility Fund, Debt Service, and Building Reserve Fund. The District s budget presentation can easily become confusing with the large number of funds. For this reason, a flowchart has been added below to guide the reader to the flow of information. Summary and Analysis of All Budgeted Funds Summary and Analysis of All Elementary Funds Summary and Analysis of All High School Funds Presentation General Fund Presentation Transportation Fund Presentation Tuition Fund Presentation Retirement Fund Presentation Adult Ed. Fund Presentation Technology Fund Presentation Flexibility Fund Presentation Debt Service Fund Presentation Building Reserve Fund Elementary General Fund Elementary Transportation Fund Elementary Tuition Fund Elementary Retirement Fund Elementary Adult Ed. Fund Elementary Technology Fund Elementary Flexibility Fund Elementary Debt Service Fund Elementary Building Reserve Fund High School General Fund High School Transportation Fund High School Tuition Fund High School Retirement Fund High School Adult Ed. Fund High School Technology Fund High School Flexibility Fund High School Debt Service Fund High School Building Reserve Fund 46

52 All Budgeted Funds By Object BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Budgeted Funds Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 51,974,099 54,912,828 56,752,803 61,774,304 64,890,670 67,287,823 Yellowstone County 12,263,328 13,048,692 11,391,514 12,037,154 12,709,341 13,982,975 District Revenue 33,782,148 33,641,594 35,633,171 32,784,421 35,358,676 35,149,786 Federal Grants 170, Total Revenues $ 98,190,196 $ 101,603,114 $ 103,777,488 $ 106,595,880 $ 112,958,688 $ 116,420,584 Salaries 60,740,106 63,456,032 66,849,106 68,374,840 74,415,125 76,610,174 Benefits 16,773,725 17,266,324 18,694,636 19,709,121 22,152,238 23,185,141 Professional & Technical Services 1,082, , ,400 1,243,083 1,357,243 2,261,518 Property Services 3,229,936 3,039,109 3,243,998 3,108,580 3,521,439 3,323,262 Purchased Services 5,166,889 5,592,991 5,792,696 5,978,854 5,974,431 6,709,089 Supplies/Materials 3,433,628 2,392,595 3,058,115 4,397,843 3,991,687 4,560,000 Property & Equipment 3,101,820 4,079,413 3,905,411 1,094,952 1,050,550 1,064,457 Other Objects 2,430,936 4,405,225 2,810,780 2,871,082 2,907, ,376 Other Use of Funds - 1,193, ,178 Total Expenditures $ 95,959,458 $ 102,333,152 $ 105,333,144 $ 106,778,355 $ 115,369,815 $ 118,618,196 Net Revenues (Expenditures) $ 2,230,739 $ (730,038) $ (1,555,655) $ (182,475) $ (2,411,127) $ (2,197,612) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 1,193, ,175,695 Increase (Decrease) of Reserve for Encumbrances (810,349) (7,382) 255,891 25,347 (338,894) - Material Prior Period Revenue Adjustment 550, ,344 2, ,183 - Total Transfers To (From) Fund Balance $ (259,522) $ 1,186,521 $ 263,235 $ 27,711 $ 228,289 $ 2,175,695 Beginning Fund Balance $ 12,990,519 $ 14,961,736 $ 15,418,219 $ 14,125,798 $ 13,971,034 $ 11,788,196 Ending Fund Balance $ 14,961,736 $ 15,418,219 $ 14,125,798 $ 13,971,034 $ 11,788,196 $ 9,590,584 Note: The $ (2,175,695) in FY09 is cash reappropriated. At the end of each fiscal year, after considering any unpaid obligations, the remainder is referred to as fund balance. Cash re-appropriated is the difference between the end-of-year fund balance and the amount reserved for operations. 47

53 By Function For comparative purposes, the FY08 budget, per fund, with expenditures by function follows. Billings Public Schools traditionally budgets per expenditure object rather than by function as the District is required to report expenditures to the state of Montana by object. The remainder of the presentation will display expenditures by object. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures by Function and Changes in Fund Balance All Budgeted Funds by Function Adopted Budget FY09 REVENUES General Transportation Tuition Retirement Education State of Montana 65,688,246 1,048,477 22,500 - Yellowstone County 863,500 13,119,475 District Revenue 29,758,700 3,284, ,661 80,525 1,700,505 Total Revenues $ 95,446,945 $ 5,196,372 $ 348,161 $ 13,200,000 $ 1,700,505 Adult Instruction 60,939, ,000 9,098, ,536 Support Services 6,435, ,826 85,621 Improvement of Instructional Services 5,264, ,427 5,350 General Administration 1,925, , School Administration 7,031, ,200, ,591 Business Services 1,311, ,822 - Operations and Maintenance 10,380, ,692 49,747 Student Transportation 5,509 5,196, ,545 - Support Services Central Community Services 6, ,000 Extracurricular Activities 11, ,641 - Athletics 1,825, ,132 - Building Improvement/Facility Acquisition 146, ,230 Capital Leases & INTERCAP 161, General Obligation Bonds/Assessments Undistributed ,915 Total Expenditures $ 95,446,945 $ 5,196,372 $ 600,000 $ 13,200,000 $ 2,100,000 Net Revenues (Expenditures) $ 0 $ 0 $ (251,839) $ (0) $ (399,495) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer , ,603 Increase (Decrease) of Reserve for Encumbrances Material Prior Period Revenue Adjustment Total Transfers To (From) Fund Balance $ - $ - $ 251,838 $ - $ 377,603 Beginning Fund Balance $ 4,885,550 $ 372,513 $ 251,838 $ 3,574,708 $ 1,134,920 Ending Fund Balance $ 4,885,550 $ 372,513 $ - $ 3,574,708 $ 735,425 48

54 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures by Function and Changes in Fund Balance All Budgeted Funds by Function - Continued Adopted Budget FY09 Debt Building REVENUES Technology Flexibility Service Reserve State of Montana 193, , Yellowstone County - District Revenue Total Revenues $ 193,516 $ 335,084 $ - $ - Instruction 389, , Support Services Improvement of Instructional Services General Administration School Administration Business Services Operations and Maintenance Student Transportation Support Services Central Community Services Extracurricular Activities Athletics Building Improvement/Facility Acquisition ,058 Capital Leases & INTERCAP General Obligation Bonds/Assessments ,710 - Undistributed Total Expenditures $ 389,130 $ 964,980 $ 27,710 $ 693,058 Net Revenues (Expenditures) $ (195,614) $ (629,896) $ (27,710) $ (693,058) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer 195,614 $ 629,896 $ 27,710 $ 693,034 Increase (Decrease) of Reserve for Encumbrances Material Prior Period Revenue Adjustment Total Transfers To (From) Fund Balance $ 195,614 $ 629,896 $ 27,710 $ 693,034 Beginning Fund Balance $ 195,614 $ 629,897 $ 50,098 $ 693,058 Ending Fund Balance $ 0 $ 0 $ 22,388 $ 0 49

55 Analysis of Revenues $140,000,000 All Budgeted Funds Revenues $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- Actual Actual Actual Actual Actual Budget FY04 FY05 FY06 FY07 FY08 FY09 State of Montana Yellowstone County District Revenue The District will receive approximately $67,287,823 in State Revenues in FY09, an increase of $2,397,153 from the previous year. Schools received $180 million of new state money over a two year period through the budget passed by a special session of the Montana Legislature in May, The state sees an approximate 14% increase of state educational funds. Part of the funding goes directly to reduce local property tax which actually offers no net increase in funding. Another $30 million are one-time funds designated for building maintenance and capital investment. These funds cannot be used to increase teacher or staff salaries or to fund on-going programs. Billings Public Schools received approximately $2.5 million in one-time funds in FY08 to fund a new full-day kindergarten program in the District. Yellowstone County revenue is expected to increase from $12,709,341 to $13,982,975, an increase of 10 percent, through permissive levies. The permissive levies fund the tuition, transportation, and retirement funds. Billings Public Schools passed its first General Fund mill levy since 2002 on May 8 th, Voters approved a $1.4 million elementary levy and a $2.9 million high school levy. District revenue is expected to decrease slightly in FY09. Approximately 82% of the District s total revenues are allocated to the General Fund. The General Fund is the chief reporting vehicle for current operations. Retirement Fund 11.33% Tuition Fund 0.30% Transportation Fund 4.46% Adult Ed. Fund 1.48% Technology Fund 0.17% Flexibility Fund 0.29% General Fund 81.96% FY09 Revenue Distribution 50

56 The following charts present 6-year District revenue trends for all major revenue sources. State of Montana Revenue Trend FY09 FY08 FY07 FY06 FY05 FY04-20,000,000 40,000,000 60,000,000 80,000,000 Yellowstone County Revenue Trend FY09 FY08 FY07 FY06 FY05 FY04-5,000,000 10,000,000 15,000,000 District Revenue Trend FY09 FY08 FY07 FY06 FY05 FY04 31,000,000 32,000,000 33,000,000 34,000,000 35,000,000 36,000,000 51

57 Analysis of Expenditures Top 6 Budgeted Funds Expenditures FY04 FY05 FY06 FY07 FY08 FY09 Budget Actual Actual Actual Actual Actual Supplies/Materials Purchased Services Property Services Professional & Technical Services Benefits Salaries $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 The largest expenditure in the District is salaries. The salary expenses are paid out of the General Fund, Transportation Fund, Adult Education Fund, and the Flexibility Fund. The General Fund alone spends approximately 77.88% of its budget on salaries. Billings Public schools is one of the highest paying districts for teachers in the state of Montana. Benefits are the second largest expenditure in the District. Billings Public Schools continues to pay the single premium health and life insurance premiums for employees. Premiums have risen from $465 per full-time equivalent to $476 in one year. Since FY04, benefit costs increased more rapidly than salary costs. Benefit costs have increased 32% since FY04 while salary costs have increased just 23%. The benefit increases are largely due to increasing costs of health insurance. $80,000,000 Salary and Benefit Trend $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 Salaries Benefits $20,000,000 $10,000,000 Actual Actual Actual Actual Actual Budget FY04 FY05 FY06 FY07 FY08 FY09 52

58 Another method of analyzing expenditures is to show how the operating budget relates to a typical student. In FY09, the proposed budget will provide funding for approximately 15,481 students. This represents a cost of about $7,661 per student, an increase of approximately $176 from last year. The graph below shows how the District s budget, by function, will be used to support the typical student. How Will the Typical Student Use $7,661? Student Transportation 4% Athletics 2% Building Improvement/Facility Acquisition 1% Operations and Maintenance 9% Business Services 1% School Administration 7% General Administration 2% Instruction 61% Improvement of Instructional Services 5% Support Services 6% 53

59 All Elementary District Budgeted Funds BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Elementary District Budgeted Funds Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 31,116,000 33,827,183 35,266,100 38,132,035 40,670,198 42,309,731 Yellowstone County 8,183,781 8,765,665 6,871,735 7,802,022 8,170,373 8,906,000 District Revenue 19,595,526 20,854,500 22,114,846 20,622,882 20,795,278 20,084,602 Federal Grants 101, Total Revenues $ 58,996,627 $ 63,447,348 $ 64,252,681 $ 66,556,939 $ 69,635,849 $ 71,300,333 Salaries 38,005,848 39,633,643 41,972,810 42,975,129 47,085,272 47,993,156 Benefits 10,830,101 10,966,619 11,955,885 12,424,011 14,170,970 14,700,786 Professional & Technical Services 437, , , , ,657 1,112,805 Property Services 1,749,260 1,695,284 1,819,037 1,701,667 1,864,382 1,977,719 Purchased Services 2,793,537 3,006,937 3,093,414 3,137,451 3,110,750 3,645,196 Supplies/Materials 1,912,136 1,002,034 1,599,833 2,072,456 1,721,279 2,187,334 Property & Equipment 2,051,060 1,973,485 1,910, , , ,571 Other Objects 249,954 2,779,297 2,739,376 2,782,998 2,819, ,190 Other Use of Funds - 210, ,759 Total Expenditures $ 58,029,290 $ 61,679,913 $ 65,557,209 $ 66,375,048 $ 71,878,463 $ 72,298,517 Net Revenues (Expenditures) $ 967,337 $ 1,767,435 $ (1,304,527) $ 181,892 $ (2,242,614) $ (998,183) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 210, ,160 Increase (Decrease) of Reserve for Encumbrances (745,785) (105,446) 58,199 5,553 (37,297) - Material Prior Period Revenue Adjustment 482, ,344 2, ,189 - Total Transfers To (From) Fund Balance $ (263,561) $ 104,783 $ 65,543 $ 7,706 $ 305,892 $ 998,160 Beginning Fund Balance $ 7,322,830 $ 8,026,606 $ 9,898,824 $ 8,659,840 $ 8,849,437 $ 6,912,715 Ending Fund Balance $ 8,026,606 $ 9,898,824 $ 8,659,840 $ 8,849,437 $ 6,912,715 $ 5,914,531 In 2001, voters approved a five-year building reserve levy in the Elementary District for $2,000,000 per year. FY06 was the final year of the levy. The District spent down the Building Reserve fund balance to just $310,272 FY08, which is reflected in the significant drop in the Elementary District s ending fund balance. Elementary District expenditures continue to exceed revenues, forcing reserves in the transportation, tuition, and retirement funds to be spent down. 54

60 Elementary District Revenues vs. Expenditures $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 Actual Actual Actual Actual Actual Budget FY04 FY05 FY06 FY07 FY08 FY09 Total Revenues Total Expenditures The following two charts illustrate the Elementary Districts revenue and expenditure trends since FY04. $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Elementary District Revenue FY04 FY05 FY06 FY07 FY08 FY09 State of Montana Yellowstone County District Revenue FY09 FY08 FY07 FY06 FY05 FY04 Elementary District Expenditures Millions Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Other Objects Property & Equipment Other Use of Funds 55

61 All High School District Budgeted Funds BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All High School District Budgeted Funds Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 20,858,100 21,085,645 21,486,703 23,642,269 24,220,472 24,978,091 Yellowstone County 4,079,548 4,283,027 4,519,780 4,235,132 4,538,968 5,076,975 District Revenue 14,186,622 12,787,094 13,518,325 12,161,540 14,563,400 15,065,185 Federal Grants 69,301 - Total Revenues $ 39,193,570 $ 38,155,766 $ 39,524,808 $ 40,038,941 $ 43,322,840 $ 45,120,251 Salaries 22,734,257 23,822,390 24,876,296 25,399,711 27,329,854 28,617,018 Benefits 5,943,623 6,299,704 6,738,753 7,285,110 7,981,268 8,484,355 Professional & Technical Services 645, , , , ,586 1,148,714 Property Services 1,480,677 1,343,825 1,424,961 1,406,913 1,657,056 1,345,543 Purchased Services 2,373,352 2,586,054 2,699,282 2,841,403 2,863,681 3,063,893 Supplies/Materials 1,521,491 1,390,561 1,458,283 2,325,388 2,270,408 2,372,666 Property & Equipment 1,050,759 2,105,927 1,995, , , ,886 Other Objects 2,180,982 1,625,928 71,404 88,084 87, ,186 Other Use of Funds - 983, ,418 Total Expenditures $ 37,930,167 $ 40,653,240 $ 39,775,939 $ 40,403,308 $ 43,491,352 $ 46,319,679 Net Revenues (Expenditures) $ 1,263,404 $ (2,497,473) $ (251,131) $ (364,367) $ (168,512) $ (1,199,428) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 983, ,199,427 Increase (Decrease) of Reserve for Encumbrances (64,564) 98, ,692 19,795 (301,597) - Material Prior Period Revenue Adjustment 68, ,994 - Total Transfers To (From) Fund Balance $ 4,040 $ 1,081,738 $ 197,692 $ 20,005 $ (77,602) $ 1,199,427 Beginning Fund Balance $ 5,667,687 $ 6,935,131 $ 5,519,395 $ 5,465,956 $ 5,121,594 $ 4,875,482 Ending Fund Balance $ 6,935,131 $ 5,519,395 $ 5,465,956 $ 5,121,594 $ 4,875,482 $ 3,676,055 In 2001, voters approved a five-year building reserve levy in the High School District for $1,000,000 per year. FY06 was the final year of the levy. The District spent down the remainder of the Building Reserve fund balance to $382,786 in FY08 and will exhaust the fund balance in FY09. Expenditures in the High School District continue to exceed revenues, forcing reserves to be spent down in the technology, retirement, and tuition funds. 56

62 $50,000,000 $48,000,000 $46,000,000 $44,000,000 $42,000,000 $40,000,000 $38,000,000 $36,000,000 $34,000,000 $32,000,000 $30,000,000 High School District Revenues vs. Expenditures Actual Actual Actual Actual Actual Budget FY04 FY05 FY06 FY07 FY08 FY09 Total Revenues Total Expenditures The following two charts illustrate the High School Districts revenue and expenditure trends since FY04. $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- High School District Revenue FY04 FY05 FY06 FY07 FY08 FY09 State of Montana Yellowstone County District Revenue High School District Expenditures FY09 FY08 FY07 FY06 April Streeter FY05 FY04 $- $10 $20 $30 $40 $50 Millions Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds 57

63 General Fund The General Fund is the largest fund and is the chief reporting vehicle for current operations. The general fund is funded through state aid, property tax, and non-levy revenue. Property taxes are computed using a mathematical procedure called a mill rate. Billings Public Schools passed its first General Fund mill levy since 2002 on May 8 th, Voters approved a $1.4 million elementary levy and a $2.9 million high school levy. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance General Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 49,883,497 50,641,647 53,649,286 58,052,475 63,440,003 65,688,246 Yellowstone County District Revenue 25,194,121 24,925,436 25,929,990 26,502,085 29,777,073 29,758,700 Total Revenues $ 75,077,618 $ 75,567,083 $ 79,579,276 $ 84,554,560 $ 93,217,076 $ 95,446,945 Salaries 59,292,945 61,688,341 65,180,174 66,680,872 72,641,956 74,335,300 Benefits 5,640,897 6,310,818 7,219,898 7,581,197 8,950,726 9,348,981 Professional & Technical Services 1,013, , ,650 1,201,552 1,217,200 1,725,163 Property Services 3,077,658 2,981,935 3,147,289 3,076,630 3,212,384 3,267,835 Purchased Services 2,068,690 1,624,493 1,823,186 2,098,606 2,088,848 2,181,995 Supplies/Materials 2,924,043 1,968,350 2,370,210 3,509,346 3,729,382 4,049,965 Property & Equipment 234, , ,727 56, , ,428 Other Objects 356, , , , , ,016 Other Use of Funds ,262 Total Expenditures $ 74,609,660 $ 75,773,059 $ 80,848,989 $ 84,393,324 $ 92,348,762 $ 95,446,946 Net Revenues (Expenditures) $ 467,959 $ (205,976) $ (1,269,713) $ 161, ,314 $ (0) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments 169, ,344 2, ,059 - Increase (Decrease) of Reserve for Encumbrances (818,736) (47,275) 68, ,191 (372,690) - Total Transfers To (From) Fund Balance $ (649,365) $ (46,860) $ 76,246 $ 253,554 $ 95,369 $ Beginning Fund Balance $ 5,134,787 $ 4,953,381 $ 4,700,545 $ 3,507,078 $ 3,921,866 $ 4,885,549 Ending Fund Balance $ 4,953,381 $ 4,700,545 $ 3,507,078 $ 3,921,867 $ 4,885,549 $ 4,885,549 58

64 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District General Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 30,296,518 30,730,556 32,937,260 35,814,841 39,792,259 41,316,625 Yellowstone County District Revenue 15,659,143 15,457,555 16,096,817 16,413,280 17,420,585 17,367,643 Total Revenues $ 45,955,660 $ 46,188,111 $ 49,034,077 52,228,121 57,212,844 $ 58,684,268 Salaries 37,031,148 38,449,792 40,983,447 42,131,787 46,107,990 46,745,530 Benefits 3,540,087 3,948,924 4,534,546 4,823,373 5,749,304 6,001,344 Professional & Technical Services 400, , , , , ,424 Property Services 1,686,777 1,680,069 1,759,036 1,690,992 1,837,127 1,964,739 Purchased Services 1,053, , , , ,573 1,093,404 Supplies/Materials 1,665, ,080 1,207,928 1,840,516 1,636,345 1,766,386 Property & Equipment 6, ,439 25,238-1,299 Other Objects 249, ,614 77, , , ,880 Other Use of Funds ,262 Total Expenditures $ 45,634,306 $ 46,320,009 $ 50,069,551 $ 52,124,132 $ 56,983,444 $ 58,684,268 Net Revenues (Expenditures) $ 321,354 $ (131,898) $ (1,035,474) $ 103,989 $ 229,400 $ (0) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments 112, ,344 2, ,755 - Increase (Decrease) of Reserve for Encumbrances (746,743) (107,212) 52,072 8,516 (54,571) - Total Transfers To (From) Fund Balance $ (633,875) $ (106,983) $ 59,416 $ 10,669 $ 232,184 $ - Beginning Fund Balance $ 4,121,353 $ 3,808,832 $ 3,569,951 $ 2,593,893 $ 2,708,551 $ 3,170,134 Ending Fund Balance $ 3,808,832 $ 3,569,951 $ 2,593,893 $ 2,708,551 $ 3,170,134 $ 3,170,134 59

65 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District General Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 19,586,980 19,911,091 20,712,026 22,237,634 23,647,743 24,371,621 Yellowstone County District Revenue 9,534,978 9,467,881 9,833,173 10,088,804 12,356,489 12,391,056 Total Revenues $ 29,121,958 $ 29,378,972 $ 30,545,199 $ 32,326,439 $ 36,004,232 $ 36,762,677 Salaries 22,261,797 23,238,549 24,196,727 24,570,968 26,533,966 27,589,770 Benefits 2,100,810 2,361,894 2,685,352 2,757,829 3,201,422 3,347,637 Professional & Technical Services 612, , , , , ,739 Property Services 1,390,880 1,301,866 1,388,252 1,363,674 1,375,257 1,303,096 Purchased Services 1,015, , ,995 1,105,586 1,139,275 1,088,591 Supplies/Materials 1,258,600 1,132,269 1,162,282 1,668,829 2,093,037 2,283,578 Property & Equipment 228, ,615 47,288 31, , ,129 Other Objects 107,024 81,653 71,109 88, , ,136 Other Use of Funds Total Expenditures $ 28,975,354 $ 29,453,050 $ 30,779,438 $ 32,269,192 $ 35,365,318 $ 36,762,677 Net Revenues (Expenditures) $ 146,604 $ (74,078) $ (234,239) $ 57,246 $ 638,914 $ - TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 56, ,305 - Increase (Decrease) of Reserve for Encumbrances (71,992) 59,937 16, ,675 (318,119) - Total Transfers To (From) Fund Balance $ (15,490) $ 60,123 $ 16,829 $ 242,885 $ (136,815) $ - Beginning Fund Balance $ 1,013,433 $ 1,144,548 $ 1,130,593 $ 913,184 $ 1,213,315 $ 1,715,415 Ending Fund Balance $ 1,144,548 $ 1,130,593 $ 913,184 $ 1,213,315 $ 1,715,415 $ 1,715,415 60

66 Transportation Fund The Transportation Fund is used to pay for school-to-home transportation of students. The fund is financed with state, county, and District revenue. The District revenue includes fees paid by students that live within the District s fee-paying boundary. Transportation fund expenditures include a contract with First Student Transportation. The contract requires $ per bus per day, plus excess mileage over 60 miles, plus excess hours over 3.5 per bus per day. The District provides the contractor with excessive cost. Billings Public Schools reimburses the contractor any incremental cost on the price of diesel fuel above the price of $1.65 per gallon. Conversely, the contractor reimburses the District any savings gained by a drop in fuel prices below $1.18 per gallon of diesel fuel. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Transportation Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 891, , ,627 1,669, ,059 1,048,477 Yellowstone County 657, , , , , ,500 District Revenue 2,535,099 2,360,183 2,279,565 2,226,329 2,353,363 3,284,395 Total Revenues $ 4,084,539 $ 4,059,278 $ 4,056,213 $ 4,681,038 $ 4,070,984 $ 5,196,372 Salaries 590, , , , , ,884 Benefits 130, , , , , ,957 Professional & Technical Services 14,200 10,303 9,678 8,110 7,223 11,297 Property Services Purchased Services 2,913,698 3,194,007 3,288,323 3,304,789 3,381,780 3,802,884 Supplies/Materials 48,748 2,208 17,945 1,902 43, ,475 Property & Equipment 9,145-12, , Other Objects Other Use of Funds - 460, Total Expenditures $ 3,706,669 $ 4,450,736 $ 4,185,792 $ 4,443,131 $ 4,550,564 $ 5,196,372 Net Revenues (Expenditures) $ 377,869 $ (391,458) $ (129,579) $ 237,907 $ (479,579) $ 0 TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments ,199 - Increase (Decrease) of Reserve for Encumbrances - - 8,800 (2,912) 36,907 - Total Transfers To (From) Fund Balance $ - $ - $ 8,800 $ (2,912) $ 83,107 $ - Beginning Fund Balance $ 668,358 $ 1,046,227 $ 654,769 $ 533,991 $ 768,985 $ 372,513 Ending Fund Balance $ 1,046,227 $ 654,769 $ 533,991 $ 768,985 $ 372,513 $ 372,513 61

67 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Transportation Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 612, , , , , ,021 Yellowstone County 441, , , , , ,000 District Revenue 1,582,049 1,428,573 1,447,377 1,913,274 1,409,082 2,097,177 Total Revenues $ 2,636,338 $ 2,551,133 $ 2,589,985 $ 3,111,620 $ 2,559,896 $ 3,364,198 Salaries 531, , , , , ,600 Benefits 116, , , , , ,193 Professional & Technical Services 11,000 9,414 8,678 7,110 6,216 9,797 Property Services Purchased Services 1,684,805 1,875,639 1,932,740 1,932,344 1,985,155 2,244,433 Supplies/Materials 22,624 1,785 10,565 1,097 23, ,675 Property & Equipment 5,145-12, , Other Objects Other Use of Funds - 210, Total Expenditures $ 2,370,989 $ 2,811,263 $ 2,720,766 $ 2,881,583 $ 2,935,017 $ 3,364,198 Net Revenues (Expenditures) $ 265,349 $ (260,131) $ (130,781) $ 230,037 $ (375,121) $ 0 TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments ,667 - Increase (Decrease) of Reserve for Encumbrances - - 8,800 (2,912) 16,957 - Total Transfers To (From) Fund Balance $ - $ - $ 8,800 $ (2,912) $ 45,625 $ - Beginning Fund Balance $ 387,319 $ 652,669 $ 392,538 $ 270,557 $ 497,682 $ 168,186 Ending Fund Balance $ 652,669 $ 392,538 $ 270,557 $ 497,682 $ 168,186 $ 168,186 62

68 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Transportation Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 279, , , , , ,456 Yellowstone County 215, , , , , ,500 District Revenue 953, , , , ,281 1,187,218 Total Revenues $ 1,448,201 $ 1,508,145 $ 1,466,228 $ 1,569,418 $ 1,511,088 $ 1,832,174 Salaries 59,054 55,794 82, , , ,284 Benefits 14,410 13,979 18,793 29,784 32,011 32,764 Professional & Technical Services 3, ,000 1,000 1,007 1,500 Property Services Purchased Services 1,228,893 1,318,368 1,355,583 1,372,445 1,396,625 1,558,452 Supplies/Materials 26, , ,442 70,800 Property & Equipment 4, Other Objects Other Use of Funds - 250, Total Expenditures $ 1,335,681 $ 1,639,473 $ 1,465,026 $ 1,561,548 $ 1,615,546 $ 1,832,174 Net Revenues (Expenditures) $ 112,520 $ (131,328) $ 1,202 $ 7,869 $ (104,458) $ (0) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments ,532 - Increase (Decrease) of Reserve for Encumbrances ,950 - Total Transfers To (From) Fund Balance $ - $ - $ - $ - $37,482 $ - Beginning Fund Balance $ 281,039 $ 393,559 $ 262,231 $ 263,434 $ 271,303 $ 204,327 Ending Fund Balance $ 393,559 $ 262,231 $ 263,434 $ 271,303 $ 204,327 $ 204,327 63

69 Tuition Fund The Tuition Fund is used to pay tuition for Billings Public Schools students attending other districts. The fund is financed with local levy and non-levy revenue. Montana state law provisions require the resident district to pay tuition in special cases. Billings Public Schools paid tuition for the education of students attending Yellowstone County Youth Services Center, the Missoula County Juvenile Detention Facility, and Yellowstone Academy. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Tuition Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 1,223 44,671 51,249 56,756 65,008 22,500 Yellowstone County District Revenue 59, , , , , ,661 Total Revenues $ 60,758 $ 353,520 $ 645,560 $ 484, , ,161 Salaries Benefits Professional & Technical Services Property Services Purchased Services 100, , , , , ,000 Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 100,000 $ 385,046 $ 454,391 $ 489, , ,000 Net Revenues (Expenditures) $ (39,242) $ (31,526) $ 191,169 $ (4,460) $ 91,750 $ (251,839) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,838 Material Prior Period Revenue Adjustment ,748 Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ 2,748 $ 251,838 Beginning Fund Balance $ 41,399 $ 2,156 $ (29,370) $ 161,800 $ 157,340 $ 251,838 Ending Fund Balance $ 2,156 $ (29,370) $ 161,800 $ 157,340 $ 251,838 $ - 64

70 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Tuition Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 614 1,051 4,197 1, Yellowstone County District Revenue 31,480 69, , , , ,211 Total Revenues $ 32,093 $ 70,811 $ 389,065 $ 267,045 $ 206,570 $ 162,211 Salaries Benefits Professional & Technical Services Property Services Purchased Services 50, , , , , ,000 Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 50,000 $ 196,865 $ 224,005 $ 207,754 $ 169,288 $ 300,000 Net Revenues (Expenditures) $ (17,907) $ (126,054) $ 165,060 $ 59,291 $ 37,281 $ (137,789) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,789 Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ - $ 137,789 Beginning Fund Balance $ 20,117 $ 2,210 $ (123,844) $ 41,216 $ 100,508 $ 137,789 Ending Fund Balance $ 2,210 $ (123,844) $ 41,216 $ 100,508 $ 137,789 $ (0) 65

71 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Tuition Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana ,620 47,052 54,790 64,268 22,500 Yellowstone County District Revenue 28, , , , , ,450 Total Revenues $ 28,664 $ 282,709 $ 256,495 $ 217,506 $ 275,675 $ 185,950 Salaries Benefits Professional & Technical Services Property Services Purchased Services 50, , , , , ,000 Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 50,000 $ 188,182 $ 230,386 $ 281,257 $ 221,206 $ 300,000 Net Revenues (Expenditures) $ (21,336) $ 94,528 $ 26,109 $ (63,751) $ 54,469 $ (114,050) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,049 Material Prior Period Revenue Adjustment ,748 - Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ 2,748 $114,049 Beginning Fund Balance $ 21,282 $ (54) $ 94,474 $ 120,583 $ 56,832 $ 114,049 Ending Fund Balance $ (54) $ 94,474 $ 120,583 $ 56,832 $ 114,049 $ - 66

72 Retirement Fund The Retirement Fund is used to pay the District s portion of Social Security, Teachers Retirement, Public Employees Retirement, and Unemployment Insurance for all District employees. Senate Bill 424, enacted by the 2003 Montana legislature, contains a provision that requires school districts to charge federal funds for employer contributions to the retirement, federal social security and unemployment insurance systems for all employees whose salaries are paid from a federal funding source. This provision was partially implemented for FY04 and was fully implemented in FY05. The retirement fund is financed primarily with a countywide levy, and to a lesser extent, investment earnings and fund balance re-appropriated. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Retirement Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana Yellowstone County 11,605,797 12,307,903 10,606,494 11,252,174 11,946,780 13,119,475 District Revenue 34,691 56,447 93,505 99,830 87,690 80,525 Total Revenues $ 11,640,489 $ 12,364,350 $ 10,699,998 $ 11,352,004 $ 12,034,469 $ 13,200,000 Salaries Benefits 10,923,999 10,694,730 11,197,806 11,843,748 12,875,340 13,200,000 Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 10,923,999 $ 10,694,730 $ 11,197,806 $ 11,843,748 $ 12,875,340 $ 13,200,000 Net Revenues (Expenditures) $ 716,490 $ 1,669,620 $ (497,808) $ (491,744) $ (840,871) $ - TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 381, Total Transfers To (From) Fund Balance $ 381,457 $ - $ - $ - $ - $ - Beginning Fund Balance $ 2,637,564 $ 3,735,511 $ 5,405,131 $ 4,907,323 $ 4,415,579 $ 3,574,708 Ending Fund Balance $ 3,735,511 $ 5,405,131 $ 4,907,323 $ 4,415,579 $ 3,574,708 $ 3,574,708 67

73 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Retirement Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana Yellowstone County 7,742,193 8,285,000 6,378,722 7,281,408 7,669,467 8,345,000 District Revenue 16,905 34,544 64,218 60,931 58,342 55,000 Total Revenues $ 7,759,098 $ 8,319,544 $ 6,442,940 $ 7,342,339 $ 7,727,809 $ 8,400,000 Salaries Benefits 7,130,809 6,821,829 7,223,129 7,423,754 8,198,977 8,400,000 Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 7,130,809 $ 6,821,829 $ 7,223,129 $ 7,423,754 $ 8,198,977 $ 8,400,000 Net Revenues (Expenditures) $ 628,289 $ 1,497,715 $ (780,189) $ (81,415) $ (471,169) $ - TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 369, Total Transfers To (From) Fund Balance $ 369,356 $ - $ - $ - $ - $ - Beginning Fund Balance $ 1,215,919 $ 2,213,564 $ 3,711,279 $ 2,931,089 $ 2,849,674 $ 2,378,505 Ending Fund Balance $ 2,213,564 $ 3,711,279 $ 2,931,089 $ 2,849,674 $ 2,378,505 $ 2,378,505 68

74 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Retirement Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana Yellowstone County 3,863,605 4,022,903 4,227,772 3,970,766 4,277,313 4,774,475 District Revenue 17,786 21,903 29,287 38,899 29,348 25,525 Total Revenues $ 3,881,391 $ 4,044,805 $ 4,257,059 $ 4,009,665 $ 4,306,661 $ 4,800,000 Salaries Benefits 3,793,190 3,872,900 3,974,677 4,419,994 4,676,362 4,800,000 Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 3,793,190 $ 3,872,900 $ 3,974,677 $ 4,419,994 $ 4,676,362 $ 4,800,000 Net Revenues (Expenditures) $ 88,201 $ 171,905 $ 282,382 $ (410,329) $ (369,702) $ - TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustments 12, Total Transfers To (From) Fund Balance $ 12,101 $ - $ - $ - $ - $ - Beginning Fund Balance $ 1,421,645 $ 1,521,947 $ 1,693,852 $ 1,976,234 $ 1,565,905 $ 1,196,203 Ending Fund Balance $ 1,521,947 $ 1,693,852 $ 1,976,234 $ 1,565,905 $ 1,196,203 $ 1,196,203 69

75 Adult Education The Adult Education Fund is used to pay for adult education. Programs to attain GED s, high school diplomas, as well as remedial college prep classes are offered. The fund is financed with local levy, tuition, and non-levy revenue. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Adult Eduation Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 85,639 19,759 21,310 14,087 3,596 - Yellowstone County District Revenue 815,372 1,368,857 1,903,240 1,834,208 1,188,685 1,700,505 Total Revenues $ 901,011 $ 1,388,617 $ 1,924,550 $ 1,848,295 $ 1,192,281 $ 1,700,505 Salaries 581, , , , , ,188 Benefits 52,848 71,044 80,838 71,684 85, ,779 Professional & Technical Services 14,315 13,115 70,987 23,832 18,149 34,509 Property Services 28,785 16,520 9,978 2,441 4,076 54,552 Purchased Services 84,501 93,152 98,578 86, , ,210 Supplies/Materials 147, , , , ,961 64,967 Property & Equipment 6,995 64, ,781 6,283-59,230 Other Objects 83 1, ,650 Other Use of Funds ,915 Total Expenditures $ 917,004 $ 1,148,605 $ 1,731,983 $ 1,364,100 $ 1,160,810 $ 2,100,000 Net Revenues (Expenditures) $ (15,993) $ 240,011 $ 192,567 $ 484,194 $ 31,471 $ (399,495) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 26,750 - Residual Equity Transfer (296,000) 377,603 Increase (Decrease) of Reserve for Encumbrances 8,387 13, ,552 (222,909) (3,111) - Total Transfers To (From) Fund Balance $ 8,387 $ 13,507 $ 204,552 $ (222,909) $ (272,361) $ 377,603 Beginning Fund Balance $ 471,493 $ 463,886 $ 717,404 $ 1,114,524 $ 1,375,809 $ 1,134,920 Ending Fund Balance $ 463,886 $ 717,404 $ 1,114,524 $ 1,375,809 $ 1,134,920 $ 735,424 70

76 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Adult Eduation Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 38,440 5,174 3,460 2, Yellowstone County District Revenue 243, , , , , ,570 Total Revenues $ 282,406 $ 378,970 $ 350,190 $ 346,647 $ 205,477 $ 402,570 Salaries 191, , , , , ,026 Benefits 21,482 24,416 25,879 20,538 28,836 27,674 Professional & Technical Services 8, ,358 3, ,710 Property Services ,379 12,480 Purchased Services 5,166 4,189 5,478 4,333 6,735 7,360 Supplies/Materials 14,900 49,792 67,775 19,882 41,421 73,653 Property & Equipment - - 5, Other Objects Other Use of Funds ,497 Total Expenditures $ 241,992 $ 322,652 $ 322,541 $ 215,972 $ 286,216 $ 500,000 Net Revenues (Expenditures) $ 40,414 $ 56,318 $ 27,649 $ 130,675 $ (80,739) $ (97,430) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment ,858 - Residual Equity Transfer ,430 Increase (Decrease) of Reserve for Encumbrances 958 (945) 38 (51) Total Transfers To (From) Fund Balance $ 958 $ (945) $ 38 $ (51) $ 5,175 $ 97,430 Beginning Fund Balance $ 93,254 $ 134,626 $ 190,000 $ 217,687 $ 348,311 $ 272,746 Ending Fund Balance $ 134,626 $ 190,000 $ 217,687 $ 348,311 $ 272,746 $ 175,316 71

77 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Adult Education Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 47,200 14,585 17,850 11,668 2,914 - Yellowstone County District Revenue 571, ,062 1,556,510 1,489, ,890 1,297,935 Total Revenues $ 618,605 $ 1,009,647 $ 1,574,360 $ 1,501,648 $ 986,804 $ 1,297,935 Salaries 389, , , , , ,162 Benefits 31,366 46,628 54,959 51,146 56, ,105 Professional & Technical Services 5,983 13,033 61,629 20,236 17,584 28,799 Property Services 28,598 15,735 9,793 1, ,072 Purchased Services 79,335 88,963 93,100 82, , ,850 Supplies/Materials 132,756 93, , , ,540 (8,686) Property & Equipment 6,995 64, ,746 6,283-59,230 Other Objects ,050 Other Use of Funds ,418 Total Expenditures $ 675,012 $ 825,953 $ 1,409,442 $ 1,148,128 $ 874,594 $ 1,600,000 Net Revenues (Expenditures) $ (56,408) $ 183,693 $ 164,918 $ 353,520 $ 112,210 $ (302,065) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment ,892 - Residual Equity Transfer (296,000) 280,173 Increase (Decrease) of Reserve for Encumbrances 7,429 14, ,514 (222,858) (3,428) - Total Transfers To (From) Fund Balance $ 7,429 $ 14,452 $ 204,514 $ (222,858) $ (277,536) $ 280,173 Beginning Fund Balance $ 378,239 $ 329,260 $ 527,405 $ 896,837 $ 1,027,499 $ 862,173 Ending Fund Balance $ 329,260 $ 527,405 $ 896,837 $ 1,027,499 $ 862,173 $ 560,108 72

78 Technology Fund The Technology Fund is used for the purchase, rental, repair, maintenance, and depreciation of technological equipment. This includes computers and computer network access and associated technical training for District personnel. The fund is financed with state money and other local, state, private, and federal funds received for the purpose of funding technology or technologyassociated training. In depreciating the technological equipment of a school district, the trustees may include in the District s budget, contingent upon voter approval of a levy, an amount each fiscal year that does not exceed 20% of the original cost of any technological equipment that is owned by the District. The amount budgeted may not, over time, exceed 150% of the original cost of the equipment. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Technology Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana - 311, , ,977 89, ,516 Yellowstone County District Revenue 4,203 7,988 9,837 10,357 4,767 - Federal Grants 170, Total Revenues $ 174,824 $ 319,222 $ 488,329 $ 467,333 93, ,516 Salaries 1, Benefits Professional & Technical Services - 21, , ,415 Property Services Purchased Services - 10,729 3, Supplies/Materials 199,621 82, , ,721 41,659 78,974 Property & Equipment 42,132 46, ,310 48,246 3, ,741 Other Objects Other Use of Funds Total Expenditures $ 242,873 $ 161,333 $ 625,147 $ 481,176 45, ,130 Net Revenues (Expenditures) $ (68,049) $ 157,889 $ (136,818) $ (13,842) 48,476 (195,614) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,614 Increase (Decrease) of Reserve for Encumbrances - 1,350 (1,350) - - Total Transfers To (From) Fund Balance $ - $ 1,350 $ (1,350) $ - $ - $ 195,614 Beginning Fund Balance $ 207,957 $ 139,908 $ 299,147 $ 160,980 $ 147,138 $ 195,614 Ending Fund Balance $ 139,908 $ 299,147 $ 160,980 $ 147,138 $ 195,614 $ (0) 73

79 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Technology Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana - 184, , ,719 54, ,441 Yellowstone County District Revenue 3,148 4,565 3,955 5,860 3,454 - Federal Sources 101, Total Revenues $ 104,468 $ 189,356 $ 291,642 $ 281,579 $ 58,337 $ 119,441 Salaries 1, Benefits Professional & Technical Services - 14,596 7, ,873 Property Services Purchased Services - 10, Supplies/Materials 171,471 56, , ,243 19,486 52,000 Property & Equipment 21,066 38,936 95,747 10, Other Objects Other Use of Funds Total Expenditures $ 193,657 $ 121,036 $ 407,029 $ 219,973 $ 19,486 $ 252,873 Net Revenues (Expenditures) $ (89,189) $ 68,320 $ (115,386) $ 61,606 $ 38,850 $ (133,432) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,432 Increase (Decrease) of Reserve for Encumbrances - 1,350 (1,350) Total Transfers To (From) Fund Balance $ - $ 1,350 $ (1,350) $ - $ - $ 133,432 Beginning Fund Balance $ 169,230 $ 80,041 $ 149,711 $ 32,975 $ 94,582 $ 133,432 Ending Fund Balance $ 80,041 $ 149,711 $ 32,975 $ 94,582 $ 133,432 $ (0) 74

80 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Technology Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana - 126, , ,258 34,219 74,075 Yellowstone County District Revenue 1,055 3,423 5,882 4,497 1,312 - Federal Grants 69, Total Revenues $ 70,356 $ 129,865 $ 196,686 $ 185,754 $ 35,531 $ 74,075 Salaries Benefits Professional & Technical Services - 7, , ,542 Property Services Purchased Services - - 3, Supplies/Materials 28,150 25,973 80, ,479 22,173 26,974 Property & Equipment 21,066 7,135 27,563 37,620 3, ,741 Other Objects Other Use of Funds Total Expenditures $ 49,216 $ 40,297 $ 218,118 $ 261,203 $ 25,905 $ 136,257 Net Revenues (Expenditures) $ 21,140 $ 89,569 $ (21,432) $ (75,448) $ 9,626 $ (62,182) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,182 Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ - $ 62,182 Beginning Fund Balance $ 38,727 $ 59,867 $ 149,436 $ 128,004 $ 52,556 $ 62,182 Ending Fund Balance $ 59,867 $ 149,436 $ 128,004 $ 52,556 $ 62,182 $ 0 75

81 Flexibility Fund This fund is a "special fund" authorized by the 2002 legislature and funded by the State. This fund allows districts wide latitude in spending. This fund allows another means for school districts to shift expenditures for expenses outside the general fund. In general, the Flexibility Fund was designed to allow school districts to spend money outside the spending caps imposed by House Bill No The revenue a school district is able to raise in support of the flexibility fund is dependent upon the wealth of the district. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Flexibility Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 248, , , , , ,084 Yellowstone County District Revenue 6,395 16,611 15,906 6,020 15,209 - Total Revenues $ 254,696 $ 341,699 $ 343,465 $ 336,068 $ 347,766 $ 335,084 Salaries 271, , , ,346 88, ,802 Benefits 25,354 40,590 28,450 26,362 20,692 83,425 Professional & Technical Services 14,410 35,374 5,440 4,910 96, ,133 Property Services - 5, Purchased Services - 282, , Supplies/Materials 46, ,367 1, ,620 Property & Equipment Other Objects - 1, Other Use of Funds Total Expenditures $ 358,340 $ 882,764 $ 344,009 $ 174,617 $ 206,387 $ 964,980 Net Revenues (Expenditures) $ (103,645) $ (541,065) $ (544) $ 161,451 $ 141,379 $ (629,896) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 460, , ,896 Increase (Decrease) of Reserve for Encumbrances - 25,036 (25,014) (22) - - Total Transfers To (From) Fund Balance $ - $ 485,036 $ (25,014) $ (22) $ 296,000 $ 629,896 Beginning Fund Balance $ 216,321 $ 112,676 $ 56,646 $ 31,089 $ 192,517 $ 629,897 Ending Fund Balance $ 112,676 $ 56,646 $ 31,089 $ 192,517 $ 629,897 $ 0 76

82 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Flexibility Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 127, , , , , ,645 Yellowstone County District Revenue 4,910 8,237 4,264 2,708 6,170 - Total Revenues $ 132,344 $ 170,881 $ 168,143 $ 167,833 $ 172,550 $ 167,645 Salaries 248, , ,790 7,407 39, ,000 Benefits 21,507 36,291 23,556-6,129 36,575 Professional & Technical Services 6,000 23, Property Services Purchased Services - 4, Supplies/Materials - 27, ,620 Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 275,963 $ 439,281 $ 176,346 $ 7,407 $ 45,784 $ 459,195 Net Revenues (Expenditures) $ (143,619) $ (268,401) $ (8,203) $ 160,426 $ 126,766 $ (291,550) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 210, ,550 Increase (Decrease) of Reserve for Encumbrances - 1,361 (1,361) Total Transfers To (From) Fund Balance $ - $ 211,361 $ (1,361) $ - $ - $ 291,550 Beginning Fund Balance $ 214,581 $ 70,962 $ 13,922 $ 4,358 $ 164,784 $ 291,550 Ending Fund Balance $ 70,962 $ 13,922 $ 4,358 $ 164,784 $ 291,550 $ 0 77

83 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Flexibility Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 120, , , , , ,439 Yellowstone County District Revenue 1,485 8,374 11,643 3,312 9,039 - Total Revenues $ 122,352 $ 170,818 $ 175,322 $ 168,235 $ 175,216 $ 167,439 Salaries 23,510 25,980 31, ,939 49, ,802 Benefits 3,847 4,299 4,894 26,362 14,563 46,850 Professional & Technical Services 8,410 11,620 5,440 4,910 96, ,133 Property Services - 4, Purchased Services - 278, , Supplies/Materials 46, ,581 1,007 - Property & Equipment Other Objects - 1, Other Use of Funds Total Expenditures $ 82,377 $ 443,483 $ 167,663 $ 167,210 $ 160,603 $ 505,785 Net Revenues (Expenditures) $ 39,975 $ (272,665) $ 7,659 $ 1,025 $ 14,613 $ (338,346) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer - 250, , ,346 Increase (Decrease) of Reserve for Encumbrances - 23,674 (23,652) (22) - - Total Transfers To (From) Fund Balance $ - $ 273,674 $ (23,652) $ (22) $ 296,000 $ 338,346 Beginning Fund Balance $ 1,740 $ 41,715 $ 42,724 $ 26,730 $ 27,733 $ 338,346 Ending Fund Balance $ 41,715 $ 42,724 $ 26,730 $ 27,733 $ 338,346 $ - 78

84 Debt Service Fund The Debt Service Fund is used to pay interest and principal on outstanding bonds and special improvement district assessments. The fund is financed with a local tax levy, state revenues, and non-tax revenues. Billings Public Schools secured a $10,000,000 bond in the Elementary District in FY04. The proceeds were used to refurbish elementary buildings. Such refurbishments included school renovations, paving projects, window replacements, and playground maintenance. The High School District was unsuccessful in gaining voter approval for building a new high school or for renovation of existing high schools. The District is considering proposing for a $35,000,000 Elementary and a $5,000,000 High School general obligation bond in FY10. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Debt Service Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 801,832 2,563,758 1,199,065 1,194,232 5,348 - Yellowstone County District Revenue 2,036,331 1,560,425 1,754,718 1,530,116 1,468,326 - Total Revenues $ 2,838,162 $ 4,124,184 $ 2,953,783 $ 2,724,348 $ 1,473,674 $ - Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects 2,073,875 4,170,920 2,661,480 2,682,250 2,693,750 27,710 Other Use of Funds - 733, Total Expenditures $ 2,073,875 $ 4,904,409 $ 2,661,480 $ 2,682,250 $ 2,693,750 $ 27,710 Net Revenues (Expenditures) $ 764,287 $ (780,225) $ 292,303 $ 42,098 $ (1,220,076) $ (27,710) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,710 Material Prior Period Revenue Adjustment ,388 - Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ 22,388 $ 27,710 Beginning Fund Balance $ 929,323 $ 1,693,611 $ 913,385 $ 1,205,689 $ 1,247,787 $ 50,098 Ending Fund Balance $ 1,693,611 $ 913,385 $ 1,205,689 $ 1,247,787 $ 50,098 $ 22,388 79

85 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Debt Service Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana - 2,071,501 1,199,065 1,194,232 5,348 - Yellowstone County District Revenue - 1,470,635 1,754,718 1,530,116 1,468,326 - Total Revenues $ - $ 3,542,136 $ 2,953,783 $ 2,724,348 $ 1,473,674 $ - Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects - 2,628,750 2,661,480 2,682,250 2,693,750 27,710 Other Use of Funds Total Expenditures $ - $ 2,628,750 $ 2,661,480 $ 2,682,250 $ 2,693,750 $ 27,710 Net Revenues (Expenditures) $ - $ 913,385 $ 292,303 $ 42,098 $ (1,220,076) $ (27,710) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,710 Material Prior Period Revenue Adjustment ,388 - Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ 22,388 $ 27,710 Beginning Fund Balance $ - $ - $ 913,385 $ 1,205,689 $ 1,247,787 $ 50,098 Ending Fund Balance $ - $ 913,385 $ 1,205,689 $ 1,247,787 $ 50,098 $ 22,388 80

86 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Debt Service Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 801, , Yellowstone County District Revenue 2,036,331 89, Total Revenues $ 2,838,162 $ 582,048 $ - $ - $ - $ - Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects 2,073,875 1,542, Other Use of Funds - 733, Total Expenditures $ 2,073,875 $ 2,275,659 $ - $ - $ - $ - Net Revenues (Expenditures) $ 764,287 $ (1,693,611) $ - $ - $ - $ - TRANSFERS TO (FROM) FUND BALANCE Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ - $ - Beginning Fund Balance $ 929,323 $ 1,693,611 $ - $ - $ - $ - Ending Fund Balance $ 1,693,611 $ - $ - $ - $ - $ - 81

87 Building Reserve Fund The Building Reserve Fund is used to pay for major maintenance, remodeling, and building projects. The fund is established upon passage of a voted levy that authorizes the levy for up to 20 years. The amount levied in one year is limited to the total authorized levy divided by the number of years authorized. Fund balance re-appropriated and non-levy revenues are also sources of funding for the Building Reserve Fund. In 2001, district voters approved a building reserve levy for five years in the Elementary and High School Districts. The approved levy amounts were $2,000,000 each year in the Elementary District and $1,000,000 each year in the High School District. In addition to the levy, the District receives non-tax revenue of approximately $20,000 in each fund. Remaining building reserve money can be carried forward and used in subsequent years. Fiscal year 2006 was the final year for the Building Reserve levies. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Building Reserve Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 61,698 48,365 34, Yellowstone County District Revenue 3,096,402 3,036,798 3,052, ,682 46,326 - Total Revenues $ 3,158,100 $ 3,085,162 $ 3,086,314 $ 147,682 $ 46,326 $ - Salaries 1,957 15,345 21,070 9, Benefits ,121 1, Professional & Technical Services 25,879 30,156 1,552 4,471 17,816 - Property Services 123,457 35,391 86,166 28, ,860 - Purchased Services - 3, Supplies/Materials 66,950 50,178 15,283 2,505 23,738 - Property & Equipment 2,808,714 3,797,770 3,158, , , ,058 Other Objects Other Use of Funds Total Expenditures $ 3,027,038 $ 3,932,469 $ 3,283,548 $ 906,997 $ 1,098,317 $ 693,058 Net Revenues (Expenditures) $ 131,062 $ (847,307) $ (197,234) $ (759,315) $ (1,051,992) $ (693,058) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment 1,039 - Residual Equity Transfer - 733, ,034 Total Transfers To (From) Fund Balance $ - $ 733,489 $ - $ - $ 1,039 $ 693,034 Beginning Fund Balance $ 2,683,317 $ 2,814,379 $ 2,700,560 $ 2,503,326 $ 1,744,011 $ 693,058 Ending Fund Balance $ 2,814,379 $ 2,700,560 $ 2,503,326 $ 1,744,011 $ 693,058 $ 0 82

88 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance Elementary District Building Reserve Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 40,294 29,571 20, Yellowstone County District Revenue 2,053,924 2,006,836 2,011,900 87,406 18,692 - Total Revenues $ 2,094,218 $ 2,036,407 $ 2,032,855 $ 87,406 $ 18,692 $ - Salaries 1,957 15,261 19,227 6, Benefits ,043 1, Professional & Technical Services 11,324 22, , Property Services 62,259 13,726 59,666 9,530 23,805 - Purchased Services - 2, Supplies/Materials 37,698 29,816 9,423 1, Property & Equipment 2,018,256 1,934,550 1,662, , , ,272 Other Objects Other Use of Funds Total Expenditures $ 2,131,576 $ 2,018,226 $ 1,752,360 $ 612,223 $ 546,499 $ 310,272 Net Revenues (Expenditures) $ (37,357) $ 18,180 $ 280,495 $ (524,817) $ (527,808) $ (310,272) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment Residual Equity Transfer ,248 Total Transfers To (From) Fund Balance $ - $ - $ - $ - $ 521 $ 310,248 Beginning Fund Balance $ 1,101,058 $ 1,063,701 $ 1,081,881 $ 1,362,376 $ 837,559 $ 310,272 Ending Fund Balance $ 1,063,701 $ 1,081,881 $ 1,362,376 $ 837,559 $ 310,272 $ 0 83

89 BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues, Expenditures and Changes in Fund Balance High School District Building Reserve Fund Budget for the Year Ending June 30th, 2009 FY04 FY05 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Actual Actual Budget State of Montana 21,404 18,794 13, Yellowstone County District Revenue 1,042,477 1,029,962 1,040,199 60,276 27,634 - Total Revenues $ 1,063,882 $ 1,048,756 $ 1,053,459 $ 60,276 $ 27,634 $ - Salaries ,843 2, Benefits Professional & Technical Services 14,555 7,907 1, ,392 - Property Services 61,198 21,665 26,501 19, ,055 - Purchased Services - 1, Supplies/Materials 29,252 20,362 5, ,216 - Property & Equipment 790,457 1,863,220 1,495, , , ,786 Other Objects Other Use of Funds Total Expenditures $ 895,463 $ 1,914,243 $ 1,531,188 $ 294,774 $ 551,818 $ 382,786 Net Revenues (Expenditures) $ 168,419 $ (865,487) $ (477,729) $ (234,498) $ (524,184) $ (382,786) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment Residual Equity Transfer - 733, ,786 Total Transfers To (From) Fund Balance $ - $ 733,489 $ - $ - $ 518 $ 382,786 Beginning Fund Balance $ 1,582,259 $ 1,750,678 $ 1,618,679 $ 1,140,950 $ 906,452 $ 382,786 Ending Fund Balance $ 1,750,678 $ 1,618,679 $ 1,140,950 $ 906,452 $ 382,786 $ 0 84

90 Non-Budgeted Funds In an effort to create complete financial transparency, Billings Public Schools has included a presentation of the District s non-budgeted funds. The inclusion of non-budgeted funds is not a requirement of the Association of School Business Officials. Billings Public Schools maintains non-budgeted funds separately in both the elementary and the high school districts. The subsequent non-budgeted funds are displayed in the following order: All District Non-Budgeted Funds combined All Elementary District Non-Budgeted Funds combined Elementary District Miscellaneous Programs Fund Elementary District Compensated Absence Fund Elementary District Building Fund Elementary Student Extracurricular Activities Fund Elementary Private Purpose Trust (spend principal & interest) Fund All High School District Non-Budgeted Funds combined High School District Food Services Fund High School District Miscellaneous Fund High School District Traffic Education Fund High School District Lease-Rental Fund High School District Compensated Absence Fund High School District Building Fund High School District Self Insurance Fund-Health High School District Self Insurance Fund-Liability High School District Interlocal Agreement Fund High School District Extracurricular Activities Fund High School District Private Purpose Trust (spend principal & interest) Fund 85

91 All District Non-Budgeted Funds Combined BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Billings Public Schools Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 13,012,994 12,541,845 12,113,552 12,087,584 Other Sources 367, ,559 2,459, ,214 State of Montana 2,098,052 4,939,644 4,345,751 2,144,708 Yellowstone County District Revenue 22,177,681 22,956,648 24,609,676 24,783,424 Total Revenues $ 37,655,727 $ 40,685,696 $ 43,528,007 $ 39,117,930 Salaries 8,509,830 9,053,024 8,885,777 8,594,187 Benefits 2,210,735 2,277,238 2,263,267 2,228,710 Professional & Technical Services 17,347,135 15,907,568 16,504,741 11,814,323 Property Services 886, ,664 1,076, ,543 Purchased Services 1,607,531 4,460,595 2,901,930 2,098,230 Supplies/Materials 4,761,951 3,329,159 5,399,655 12,067,334 Property & Equipment 8,620,253 2,064,241 2,025, ,500 Other Objects 259, , , ,405 Other Use of Funds 232, , , ,747 Total Expenditures $ 44,436,134 $ 38,500,961 $ 39,733,906 $ 38,445,979 Net Revenues (Expenditures) $ (6,780,407) $ 2,184,735 $ 3,794,101 $ 671,951 TRANSFERS TO (FROM) FUND BALANCE Increase/Decrease of Reserves for Inventories (10,572) (67,512) (10,806) (41,579) Increase/Decrease of Reserves for Encumbrances (16,346) (15,138) 125,616 - Material Prior Period Revenue Adjustments 37, ,009 Residual Equity Transfer 9,722 25,064 26,502 12,248,002 Total Transfers To (From) Fund Balance $ 20,407 $ (57,586) $ 141,312 $ 12,252,431 86

92 All Elementary District Non-Budgeted Funds Combined BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 9,951,400 9,464,611 9,176,496 9,681,322 Other Sources 247,540 47,559 2,403,275 97,214 State of Montana 1,663,360 3,416,903 3,813,625 2,066,551 Yellowstone County District Revenue 1,537,416 2,117,105 2,178,078 2,244,101 Total Revenues $ 13,399,716 $ 15,046,178 $ 17,571,474 $ 14,089,189 Salaries 6,892,705 7,401,427 7,589,774 7,181,708 Benefits 1,904,102 1,995,241 2,027,761 1,976,498 Professional & Technical Services 801, , , ,871 Property Services 275, , , ,848 Purchased Services 648, , , ,684 Supplies/Materials 1,961,883 1,753,764 2,266,342 7,659,486 Property & Equipment 8,173,510 1,394,975 1,497, ,440 Other Objects 48,451 76, , ,471 Other Use of Funds 183, , , ,877 Total Expenditures $ 20,890,292 $ 14,288,732 $ 15,178,380 $ 18,777,882 Net Revenues (Expenditures) $ (7,489,733) $ 756,883 $ 2,450,180 $ (4,688,693) TRANSFERS TO (FROM) FUND BALANCE Material Prior Period Revenue Adjustment Residual Equity Transfer 9,722 25,064 26,502 6,273,155 Increase (Decrease) of Reserve for Encumbrances 15,138 (15,138) 125,616 - Total Transfers To (From) Fund Balance $ 25,000 $ 9,926 $ 152,118 $ 6,273,155 87

93 Elementary District Miscellaneous Programs Fund The Miscellaneous Programs Fund is used to account for Federal, State and local grants and indirect cost monies received by the District. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Miscellaneous Programs Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 9,951,400 9,454,776 9,176,496 9,681,322 State of Montana 1,663,360 3,431,903 3,813,625 2,066,551 Yellowstone County District Revenue 408, , , ,817 Total Revenues $ 12,023,479 $ 13,419,099 $ 13,375,262 $ 12,180,691 Salaries 6,849,565 7,290,892 7,237,538 6,775,661 Benefits 1,902,675 1,993,864 2,011,180 2,140,372 Professional & Technical Services 546, , , ,041 Property Services 181, , , ,645 Purchased Services 611, , , ,672 Supplies/Materials 1,440,605 1,233,836 1,686,115 2,251,510 Property & Equipment 699, , , ,678 Other Objects 18,997 18,249 15,536 1,799 Other Use of Funds 183, , ,511 15,673 Total Expenditures $ 12,434,814 $ 12,163,761 $ 13,220,855 $ 12,772,051 Net Revenues (Expenditures) $ (411,336) $ 1,255,339 $ 154,406 $ (591,360) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer 9,722 25,064 26,502 2,039,580 Increase (Decrease) of Reserve for Encumbrances 15,138 (15,138) 125,616 - Total Transfers To (From) Fund Balance $ 24,860 $ 9,926 $ 152,118 $ 2,039,580 88

94 Elementary District Compensated Absence Fund The District established the Compensated Absence Fund to pay any accumulated amount of sick and vacation leave to non-teaching and administrative personnel upon termination of employment. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Compensated Absence Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue Total Revenues $ 128 $ 2 $ 2 $ - Salaries 6, Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 6,300 $ - $ - $ 95 Net Revenues (Expenditures) $ (6,172) $ 2 $ 2 $ (95) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer Total Transfers To (From) Fund Balance $ - $ - $ - $ 95 89

95 Elementary District Building Fund The Building Fund is used to account for the financial resources segregated for the acquisition, construction or repair of major capital facilities. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Building Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Other Sources 247,540 47,559 2,279,687 97,214 State of Montana Yellowstone County District Revenue 419, , , ,891 Total Revenues $ 667,063 $ 847,202 $ 3,176,262 $ 1,012,105 Salaries 1,716 6,445 2,172 1,926 Benefits Professional & Technical Services 209,727 35,038 8,518 2,024 Property Services 51,471 16,388 33,623 1,581,090 Purchased Services 88 1, Supplies/Materials 33,151 2,970 12,473 42,463 Property & Equipment 7,408,189 1,239, ,994 2,249,131 Other Objects 14,094 41, ,271 - Other Use of Funds Total Expenditures $ 7,718,468 $ 1,343,871 $ 916,087 $ 3,876,645 Net Revenues (Expenditures) $ (7,051,405) $ (496,669) $ 2,260,176 $ (2,864,540) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,329,681 Total Transfers To (From) Fund Balance $ - $ - $ - $ 3,329,681 90

96 Elementary Student Extracurricular Activities Fund The Student Extracurricular Activities Fund is used to account for revenue and expenditures involved with extracurricular activities. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Student Extracurricular Activities Funnd Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 478, , , ,606 Total Revenues $ 478,491 $ 519,043 $ 515,581 $ 548,606 Salaries 19,134 85,445 8, Benefits Professional & Technical Services 13,875 12,983 11, Property Services 12,348 16,809 5,947 1,300 Purchased Services 27,669 35,203 35,517 4,707 Supplies/Materials 373, , , ,057 Property & Equipment 5,000 4, Other Objects 15,158 16,536 19,063 2,705 Other Use of Funds Total Expenditures $ 467,132 $ 513,763 $ 461,569 $ 658,152 Net Revenues (Expenditures) $ 11,358 $ 5,280 $ 54,012 $ (109,546) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,985 Material Prior Period Revenue Adjustments Total Transfers To (From) Fund Balance $ 140 $ - $ - $ 417,985 91

97 Elementary Private Purpose Trust (spend principal & interest) Fund The Private Purpose Trust Fund is a Fiduciary Fund. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures Elementary District Private Purpose Trust Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 231, , , ,787 Total Revenues $ 231,398 $ 259,765 $ 230,938 $ 347,787 Salaries 15,990 18,645 76,064 63,782 Benefits 1,381 1,107 3,401 - Professional & Technical Services 32,088 2, Property Services 30,265 16,587 2,203 - Purchased Services 9,087 22,956 17,657 2,970 Supplies/Materials 114, , , ,326 Property & Equipment 60,371 30,995 2,772 - Other Objects Other Use of Funds Total Expenditures $ 263,578 $ 266,834 $ 262,099 $ 644,078 Net Revenues (Expenditures) $ (32,181) $ (7,069) $ (31,161) $ (296,292) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,816 Total Transfers To (From) Fund Balance $ - $ - $ - $ 485,816 92

98 All High School District Non-Budgeted Funds combined BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Non-Budgeted Funds Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 3,061,594 3,087,070 2,937,056 2,406,261 Other Sources 119, , ,456 5,000 State of Montana 434,692 1,507, ,126 78,157 Yellowstone County District Revenue 20,639,422 20,845,773 22,147,325 22,539,323 Total Revenues $ 24,255,168 $ 25,640,584 $ 26,229,962 $ 25,028,741 Salaries 1,363,758 1,693,459 1,554, ,577 Benefits 206, , ,338 86,725 Professional & Technical Services 16,576,500 15,266,517 16,098,731 14,216,095 Property Services 376, , , ,641 Purchased Services 1,080,105 2,303,388 2,466, ,851 Supplies/Materials 3,273,218 3,245,888 3,182,324 5,353,740 Property & Equipment 452, , , ,903 Other Objects 168, , ,100 92,416 Other Use of Funds 48,071 39,843 17, ,133 Total Expenditures $ 23,545,842 $ 24,242,135 $ 24,886,042 $ 21,987,081 Net Revenues (Expenditures) $ 709,326 $ 1,427,852 $ 1,343,921 $ 3,041,660 TRANSFERS TO (FROM) FUND BALANCE Increase/Decrease of Reserves for Inventories (10,572) (67,127) (10,806) (41,579) Increase/Decrease of Reserves for Encumbrances (31,484) (385) - - Material Prior Period Revenue Adjustments 37, ,009 Residual Equity Transfer ,974,847 Total Transfers To (From) Fund Balance $ (4,593) $ (67,512) $ (10,806) $ 5,979,277 93

99 High School District School Food Services Fund The Food Services Fund is used to account for the District s food service program. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High District School Food Services Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Federal Sources 1,787,361 1,781,911 2,038,342 2,051,027 State of Montana 17,589 32,713 4,371 4,500 Yellowstone County District Revenue 2,188,400 2,258,342 2,310,599 2,389,287 Total Revenues $ 3,993,350 $ 4,072,966 $ 4,353,312 $ 4,444,814 Salaries Benefits Professional & Technical Services 3,841,148 3,946,819 4,267,757 4,444,814 Property Services - - 9,894 - Purchased Services Supplies/Materials 29, ,445 - Property & Equipment - 36,883 59,651 - Other Objects Other Use of Funds Total Expenditures $ 3,870,650 $ 3,984,165 $ 4,352,752 $ 4,444,814 Net Revenues (Expenditures) $ 122,700 $ 88,801 $ 560 $ - TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer Increase/Decrease of Reserve for Inventories (10,957) 2,220 2,353 - Total Transfers To (From) Fund Balance $ (10,957) $ 2,220 $ 2,353 $ - 94

100 High School District Miscellaneous Fund The Miscellaneous Programs Fund is used to account for Federal, State and local grants and indirect cost monies received by the District. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Miscellaneous Programs Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Other Sources ,871 - Federal Sources 1,274,233 1,305, , ,234 State of Montana 273,268 1,376, ,279 73,657 Yellowstone County District Revenue 224, , , ,511 Total Revenues $ 1,772,070 $ 3,017,083 $ 1,649,550 $ 840,402 Salaries 669, , , ,400 Benefits 192, , ,286 18,202 Professional & Technical Services 129, , ,241 61,813 Property Services 77,360 24, ,923 12,930 Purchased Services 110, , ,122 30,260 Supplies/Materials 468, , , ,717 Property & Equipment 29,450 10, , ,495 Other Objects 12,635 1,525 3, Other Use of Funds 48,071 39,843 17,906 23,452 Total Expenditures $ 1,737,145 $ 1,967,403 $ 2,180,945 $ 1,344,934 Net Revenues (Expenditures) $ 34,925 $ 1,049,681 $ (531,395) $ (504,532) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,933 Increase/Decrease of Reserve for Encumbrances 385 (385) - - Total Transfers To (From) Fund Balance $ 385 $ (385) $ - $ 661,933 95

101 High School District Traffic Education Fund This fund accounts for expenditures related to Drivers Education and the related tuition charged. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Traffic Education Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana 143,835 98,185 58,476 - Yellowstone County District Revenue 218, , , ,000 Total Revenues $ 361,883 $ 290,625 $ 275,333 $ 290,000 Salaries 251, , , ,876 Benefits 1,434 1, ,700 Professional & Technical Services Property Services 21,837 22,434 10,136 27,270 Purchased Services 3,862 2,647 2,578 4,050 Supplies/Materials 32,643 20,719 21,041 39,293 Property & Equipment - 14, Other Objects Other Use of Funds ,870 Total Expenditures $ 311,652 $ 297,802 $ 240,153 $ 469,160 Net Revenues (Expenditures) $ 50,231 $ (7,178) $ 35,180 $ (179,160) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,160 Total Transfers To (From) Fund Balance $ - $ - $ - $ 279,160 96

102 High School District Lease-Rental Fund The Lease-Rental Fund accounts for the revenues and expenditures related to the lease or rental of school property. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Lease-Rental Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue Total Revenues $ 9 $ 10 $ 10 $ 3 Salaries Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ - $ - $ - $ 392 Net Revenues (Expenditures) $ 9 $ 10 $ 10 $ (389) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer Total Transfers To (From) Fund Balance $ - $ - $ - $

103 High School District Compensated Absence Fund The District established the Compensated Absence Fund to pay any accumulated amount of sick and vacation leave to non-teaching and administrative personnel upon termination of employment. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Compensated Absence Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 1, Total Revenues $ 1,013 $ 80 $ 76 $ - Salaries 42, ,073 Benefits Professional & Technical Services Property Services Purchased Services Supplies/Materials Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 42,106 $ 99 $ - $ 3,073 Net Revenues (Expenditures) $ (41,093) $ (19) $ 76 $ (3,073) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,073 Total Transfers To (From) Fund Balance $ - $ - $ - $ 3,073 98

104 High School District Building Fund The Building Fund is used to account for the financial resources segregated for the acquisition, construction or repair of major capital facilities. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Building Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Other Sources 119, , ,470 - State of Montana Yellowstone County District Revenue 640, , , ,131 Total Revenues $ 760,085 $ 510,836 $ 671,054 $ 540,131 Salaries 7,437 13,151 3,543 - Benefits Professional & Technical Services 100,000 10,081 53,477 - Property Services , , ,031 Purchased Services Supplies/Materials 19,487 5,359 4,761 6,667 Property & Equipment 415, , ,727 60,908 Other Objects Other Use of Funds Total Expenditures $ 543,144 $ 800,483 $ 449,608 $ 389,606 Net Revenues (Expenditures) $ 216,941 $ (289,647) $ 221,446 $ 150,525 TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,399 Total Transfers To (From) Fund Balance $ - $ - $ - $ 243,399 99

105 High School District Self Insurance Fund-Health This fund is used to account for the insurance premiums collected and claims paid out for employees, retirees and ex-employees on the COBRA plan. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Self Insurance Fund - Health Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 12,921,349 12,874,158 14,582,783 14,794,815 Total Revenues $ 12,921,349 $ 12,874,158 $ 14,582,783 $ 14,794,815 Salaries 58,837 70,601 72,496 81,876 Benefits 5,098 5,593 6,147 - Professional & Technical Services 12,301,473 10,978,870 11,465,554 9,617,017 Property Services Purchased Services 464,586 1,367,814 1,696,486 - Supplies/Materials 2,787 2,524 2,280 - Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 12,833,186 $ 12,425,810 $ 13,243,580 $ 9,698,893 Net Revenues (Expenditures) $ 88,163 $ 448,348 $ 1,339,203 $ 5,095,922 TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,681,876 Total Transfers To (From) Fund Balance $ - $ - $ - $ 2,681,

106 High School District Self Insurance Fund-Liability This fund accounts for revenues collected and deductibles paid out for property and liability claims. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Self Insurance Fund - Liability Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 273,328 5,735 4,660 14,575 Total Revenues $ 273,328 $ 5,735 $ 4,660 $ 14,575 Salaries Benefits Professional & Technical Services 63,936 35,325 52, Property Services 117,945 26,678 4, ,365 Purchased Services Supplies/Materials 2, Property & Equipment Other Objects Other Use of Funds Total Expenditures $ 184,719 $ 62,165 $ 57,371 $ 147,299 Net Revenues (Expenditures) $ 88,610 $ (56,430) $ (52,711) $ (132,724) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,365 Total Transfers To (From) Fund Balance $ - $ - $ - $ 146,

107 High School District Interlocal Agreement Fund The Interlocal Agreement Fund enables the District to cooperate with other local governmental units on a basis of mutual advantage to provide services and facilities in a manner influencing the needs and development of local communities. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Interlocal Agreement Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget Other Sources ,000 State of Montana Yellowstone County District Revenue 2,052,086 2,117,700 2,112,601 2,163,000 Total Revenues $ 2,052,086 $ 2,117,700 $ 2,112,601 $ 2,168,000 Salaries 271, , , ,400 Benefits 55,073 57,452 48,917 56,420 Professional & Technical Services - 108, Property Services 97,312 4, , ,000 Purchased Services 2,609 1,660,398 9,230 3,153 Supplies/Materials 1,646,851-1,683,263 1,713,798 Property & Equipment 7,848-5,995 7,500 Other Objects 10,977 5, Other Use of Funds Total Expenditures $ 2,092,322 $ 2,126,898 $ 2,065,273 $ 2,126,421 Net Revenues (Expenditures) $ (40,236) $ (9,198) $ 47,328 $ 41,579 TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer Increase/Decrease of Reserves for Inventories - (69,347) (13,159) (41,579) Increase/Decrease of Reserves for Encumbrances (31,484) Material Prior Period Revenue Adjustments 30, Total Transfers To (From) Fund Balance $ (489) $ (69,347) $ (13,159) $ (41,579) 102

108 High School District Extracurricular Activities Fund The Student Extracurricular Activities Fund is used to account for revenue and expenditures involved with extracurricular activities. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Student Extracurricular Activities Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 1,826,954 2,392,271 2,226,630 2,198,904 Total Revenues $ 1,826,954 $ 2,392,271 $ 2,226,630 $ 2,198,904 Salaries 65, ,332 54,440 25,663 Benefits 5,357 5,873 7,091 3,324 Professional & Technical Services 109, , ,132 90,511 Property Services 58,618 85,744 62,096 32,229 Purchased Services 417, , , ,696 Supplies/Materials 905, , ,653 1,954,653 Property & Equipment - 12,599 28, ,000 Other Objects 131, , ,562 91,061 Other Use of Funds ,810 Total Expenditures $ 1,693,585 $ 2,302,089 $ 2,015,269 $ 2,532,947 Net Revenues (Expenditures) $ 133,369 $ 90,182 $ 211,361 $ (334,043) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,334,043 Material Prior Period Revenue Adjustments 6, ,009 Total Transfers To (From) Fund Balance $ 6,468 $ - $ - $ 1,380,

109 High School District Private Purpose Trust (spend principal & interest) Fund The Private Purpose Trust Fund is a Fiduciary Fund. BILLINGS PUBLIC SCHOOLS Combined Statement of Revenues & Expenditures High School District Private Purpose Trust Fund Budget for the Year Ending June 30th, 2009 FY06 FY07 FY08 FY09 REVENUES Actual Actual Actual Budget State of Montana Yellowstone County District Revenue 293, , , ,931 Total Revenues $ 293,040 $ 359,121 $ 353,953 $ 304,931 Salaries 50,491 50,063 52,105 25,288 Benefits Professional & Technical Services - 1,862 4, Property Services - 1,879 3,228 1,816 Purchased Services 72, ,710 91,040 55,692 Supplies/Materials 68,641 96, , ,219 Property & Equipment - - 3,390 - Other Objects 45,632 11,402 12, Other Use of Funds Total Expenditures $ 237,334 $ 275,219 $ 281,092 $ 829,540 Net Revenues (Expenditures) $ 55,707 $ 83,902 $ 72,861 $ (524,609) TRANSFERS TO (FROM) FUND BALANCE Residual Equity Transfer ,609 Total Transfers To (From) Fund Balance $ - $ - $ - $ 624,

110 Combined Budgeted and Non-Budgeted Funds The following graph displays the 3-year trend of revenues over expenditures for both budgeted and non-budgeted funds combined. Total expenditures exceeded revenues by $7,336,903 in During the past 2 years however, the District s revenues exceed expenditures. 160,000, ,000,000 Revenues over Expenditures + 1,644, ,000, ,979, ,000, ,000,000-7,336, ,000, ,000,000 FY06 Actual FY07 Actual FY08 Actual Total Revenues Total Expenditures 105

111 Proprietary Funds The Internal Service Fund is an accounting device used to account for the financial reporting of goods or services provided by one department to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The Internal Service Fund is presented for purposes of additional analysis and is not a required part of the basic financial statements of Billings Public Schools. When Billings Public Schools charges customers for the services it provides, whether to outside customers or to other departments of the District, these services are generally reported in proprietary funds. The District maintains one proprietary fund. Three internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statement. The three internal service funds are Self Insurance-Health, Warehouse, and Self Insurance Property. The District has no business type activities. BILLINGS PUBLIC SCHOOLS Combining Statement of Revenues, Expenditures and Changes in Fund Net Assets All Internal Service Funds For the Year Ending June 30th, 2008 Self-Insurance Self-Insurance OPERATING REVENUES Warehouse Health Property Total Charges for Services $ 2,100,709 $ 13,441,959 $ - $ 15,542,668 Total Operating Revenues 2,100,709 13,441,959-15,542,668 OPERATING EXPENSES Personal services - salaries 201,031 75, ,897 Professional & technical services - benefits 48,917 6,147-55,064 Purchased professional and technical services ,228 52,228 Purchased property services 100, , ,315 Other purchased services 9, , ,331 Supplies and materials 1,696,422 2, ,699,660 Insurance claims and expenses - 11,465,554-11,465,554 Other postemployement benefits - 1,562,000-1,562,000 Miscellaneous Depreciation 40, ,545 Total Operating Expenses 2,096,787 13,740,566 57,370 15,894,723 Operating Income (Loss) 3,922 (298,607) (57,370) (352,055) NONOPERATING REVENUES (EXPENSES) Interest revenue 11,892 72,440 4,659 88,991 Loss on disposal of capital assets (8,136) - - (8,136) Total non-operating revenue (expenses) 3,756 72,440 4,659 80,855 Change in net assets 7,678 (226,167) (52,711) (271,200) Net assets - beginning 1,472,433 (163,080) 199,076 1,508,429 Net assets - ending $ 1,480,111 $ (389,247) $ 146,365 $ 1,237,

112 Capital Projects Billings Public Schools currently does not have a recognized Capital Improvement Program (CIP) in place. The District is however in the planning stages of implementing a capital improvement plan. Year-to-year projects are planned through various committees and approved by the Board of Trustees. The importance of creating a Capital Improvement Plan for the District is essential. Whether consideration is being given to build schools, or improvements to the District s infrastructure, a CIP is required to clarify Billings Public Schools priority needs and direction. With careful planning, the District can seek to spread costs and avoid a large rise in expenditures during a single year. The first round, preliminary Capital Improvement Planning phases are as follows. CIP Phase 1: Remodel McKinley Elementary School and increase capacity to 400 students. Remodel Broadwater Elementary School and increase capacity to 400 students. Build Cottonwood Elementary School with a capacity for 400 students and for potential expansion. Lease the closed Rimrock Elementary School for up to 5 years. Change the following attendance boundaries: o McKinley Elementary School o Broadwater Elementary School o Highland Elementary School o Arrowhead Elementary School o Boulder Elementary School o Meadowlark Elementary School o Burlington Elementary School o Central Heights Elementary School Justification The oldest part of McKinley Elementary was built in 1906, while Broadwater s oldest portion dates to According to JGA Architects Engineers Planners and CTA Architects Engineers, the buildings have sustained minor structural damage and need some major repairs to the roof and heating systems. Building Cottonwood Elementary on the West End of town will eliminate cross-town busing and overcrowding of some elementary schools. Enrollment boundary changes will adjust the enrollment at all the collector schools. CIP Phase 2: Increase the size of the Career Center to accommodate 1,200 students Remodel Senior High School for 1,200 students Purchase land for an elementary school on the West end (West of Meadowlark Elementary) Change the following boundaries: o Senior High School o West High School 107

113 Justification Prior to implementation of the freshman academies, Senior High was overcrowded. To alleviate crowding, freshman students attend an off-site freshman academy for half of the school day at the Lincoln Center. Portions of the interior of Senior are in poor condition with obsolete and worn-out systems. The Career Center is a technical school for students in grades 11 and 12. While an addition has been added to the Career Center in 2007, the rest of the building is aging and becoming dated. It is in need of renovation and upgrading resulting from deferred maintenance. CIP Phase 3: Consolidate Miles Avenue Elementary and Washington Elementary on Miles Avenue with capacity for 400 students Remodel Burlington Elementary for 400 students Change the following boundaries: o Miles Avenue Elementary o Washington Elementary o Burlington Elementary o Central Heights Elementary CIP Phase 4: Remodel Bitterroot Elementary and add capacity to accommodate 7 th and 8 th graders on the same campus Build a new elementary school in the Heights Remodel Bench elementary Add 7 th and 8 th grades to Cottonwood Elementary campus Change the following boundaries: o Castle Rock Middle School o Will James Middle School CIP Phase 5: Build a new West end high school with a capacity of 1,200 1,400 students Remodel Poly Drive Elementary for 400 students Determine whether to close or remodel Rose Park Elementary school Change the following boundaries: o West High School o Senior High School o New West end High School o Poly Drive Elementary o Boulder Elementary o Rose Park Elementary CIP Phase 6: Remodel West High School for 1,400-1,600 students 108

114 The Building Fund, the Building Reserve Fund, and the Technology Fund are the capital projects funds used by Montana school districts to account for all moneys and resources set aside for acquisition of fixed assets through construction and remodeling projects. Funding is financed by bond issues, special tax levies, federal funds, or major private donations. The receipt of bond proceeds or federal moneys to finance construction or acquisition of capital assets is normally recorded in the Building Fund. The Building Reserve Fund is funded with a special voted levy. During the last 7 years, the District had embarked on a major remodel and renovation project in which $20,000,000 had been budgeted for the Elementary District and $5,000,000 for the High School District. Projects completed to date in both districts include: asbestos abatement, asphalt maintenance and repair, playground maintenance, roof replacements, building bus turn-around, replacing carpets and doors, boiler replacements, furnace replacements, gym floor refinishing, classroom renovations and the addition of artificial turf and new bleachers at Daylis Stadium. These projects have impacted the District with safer schools, playgrounds and parking areas, the reduction of costly emergency repairs, reduced energy costs, and improved sporting facility for students and parents, and an aesthetically pleasing learning environment. Capital Projects Completed in FY08 Beartooth Elementary School: Total refurbishing of school including new air conditioning, heating units and furniture. Estimated cost: $800,000 Skyview High School o Replacement of the sub-basement floor due to flooding damage. Estimated cost: $0.00 (Covered by Insurance) Castle Rock Middle School o Replacement of roof. Estimated cost: $200,000 Facility Services o Replacement of operational vehicles. Estimated cost: $300,

115 Current Debt Obligations The amount of total indebtedness of the District cannot exceed a legal limit of 50% of the combined taxable value of both the High School and the Elementary Districts. This includes other debts the District is paying off through debt service. In FY08, the combined taxable value of both districts was $359,449,967. In FY09 In FY09, the combined taxable value of both districts is $380,447,477. Long-Term Debt BILLINGS PUBLIC SCHOOLS Long-Term Debt Year Ended June 30, 2008 Balance Balance Due Within July 1, 2007 Additions Retirements June 30, 2008 One Year General obligation debt $ 2,615,000 $ - $ (2,615,000) $ - $ - Notes payable 327, ,564 (67,454) 668, ,143 Compensated absences 10,188,899 4,044,149 (3,392,768) 10,840,280 1,084,028 Service credit and termination pay benefits 3,393,708 4,016,296 (2,627,003) 4,783,001 - Other post employment benefits 1,491,000 2,736,000 (1,174,000) 3,053,000 - $ 18,015,683 $ 11,205,009 $ (9,876,225) $ 19,344,467 $ 1,219,171 General Obligation Debt The District issued $10,000,000 in general obligation bonds during fiscal year 2004 to provide funds for the remodel of certain elementary buildings. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows: BILLINGS PUBLIC SCHOOLS General Obligation Debt Year Ended June 30, 2008 Original Interest Balance Amount Term Rate June 30, elementary bonds $ 10,000,000 4 years % $ - 110

116 Notes Payable-State Board of Investments During June 2008, the District borrowed an additional $408,564 on the State Board of Investments loan to purchase 20 new vehicles. Interest and principal payments are due semiannually. The interest rate on the notes was 4.25% at June 30, The interest rate is adjusted in February of each year and cannot exceed 15% per annum. Annual debt service requirements to maturity for general obligation bonds and notes payable are as follows: BILLINGS PUBLIC SCHOOLS Notes Payable-State Board of Investments Year Ended June 30, 2008 Year ending Notes Payable June 30, Principal Interest 2009 $ 135,143 $ 25, ,345 21, ,003 14, ,764 8, ,954 4, , $ 668,186 $ 74,549 Post-Retirement Healthcare Plan Billings Public Schools Post-Retirement Healthcare Plan (BPSPHP) is a single-employer defined benefit healthcare plan administered by Employee Benefit Management Services (EBMS). BPSPHP provides medical, dental, prescription drug, life, and AD&D insurance benefits to eligible retirees and their eligible dependents. A retiree who retires in accordance with state law is eligible to keep the health insurance as a retiree. Retirement eligibility is determined based on the minimum of (1) reaching age 50 with at least 5 years of membership service, or (2) reaching 25 years of membership at any age. Eligible retirees receive health care coverage through one of the three medical plans: Plan B, Plan C and the Medicare Supplement Plan. Plans B and C are available to those under age 65, while the Medicare Supplement Plan is only available to those 65 and older. The contribution requirements of plan members are established by the District s insurance committee in conjunction with Gallagher Benefit Services, Inc. The required contribution is based on projected pay-as-you-go financing requirements. For FY08, the District contributed $9.5 million to the plan for current premiums or approximately 71% percent of total premiums. Plan members receiving benefits contributed $3.9 million or approximately 29% of the total premiums. Retirees are required to pay 100% of the premiums for both the retiree and dependent coverage. Monthly contribution rates in effect for retirees under age 65 during FY08 were as follows: 111

117 Rate Tier Plan B Plan C Retiree only $ 597 $ 423 Retiree plus 1 1, Retiree plus children 1, Retiree plus family 1, The monthly contribution rate for retirees 65 and over participating in the Medicare Supplement Plan was $305 for FY08. The District s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following schedule shows the components of the District s annual OPEB cost for the year, the amount contributed to the plan, and changes in the District s net OPEB obligation to BPSPHP. Annual required contribution $ 2,604,000 Interest on net OPEB obligation 75,000 Adjustment to annual required contribution 57,000 Annual OPEB cost (expense) 2,736,000 Contributions made (1,174,000) Increase in net OPEB obligation 1,562,000 Net OPEB obligation - beginning of year 1,491,000 Net OPEB obligation - end of year $ 3,053,

118 113

119 Assessed Value and Estimated Actual Value of Billings Public Schools BILLINGS PUBLIC SCHOOLS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Six Fiscal Years Percent of Fiscal Assessed Estimated Assessed Value to Year Value Actual Value Est. Actual Value Elementary and High School Districts Combined ,851,260 8,326,463, % ,709,097 8,772,562, % ,007,830 9,076,532, % ,260,291 10,125,456, % ,044,660 11,568,394, % ,558,875 $ 11,568,394, % $360,000,000 $350,000,000 $340,000,000 $330,000,000 $320,000,000 $310,000,000 $300,000,000 $290,000,000 $280,000,000 $270,000,000 $260,000,000 Assessed Value Growth $14,000,000,000 Estimated Actual Value Growth $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 $

120 Property Tax Rates and Collections Property taxes are levied on the basis of property wealth within a taxing jurisdiction. Tax collections are determined by multiplying the value of property (the assessed or taxable value) times the tax rate (also called the mill rate ). The tax rate is set by the Montana Legislature. Each mill raises $1 in revenue for every $1,000 of taxable value. For example, a taxpayer owning a home with a taxable value of $100,000 would pay $100 in property tax for each one mill of tax rate. BILLINGS PUBLIC SCHOOLS PROPERTY TAX RATES AND COLLECTIONS Last Ten Fiscal Years (modified accrual basis of accounting) Tax Rates Percent of Fiscal Per $1000 of Tax Taxes Tax Collections Year Taxable Value Collections Levied To Taxes Levied $ 25,879,845 $ 25,747, % ,423,507 26,840, % ,566,391 26,919, % ,185,583 23,001, % ,194,262 26,311, % ,883,888 29,639, % ,934,393 30,557, % ,215,941 31,605, % ,018,064 33,273, % ,063,181 30,937, % $ 32,171,080 $ 32,269, % 115

121 The Impact of Budget on Taxpayers The amount of property tax in Montana is not determined solely by the property's value and is not an easy formula. The property's value is multiplied by a tax rate, set by the legislature, to determine its taxable value. The taxable value is then multiplied by the mill levy. Example: Take a home with a market value of $100,000. A 31 percent homestead exemption is applied to reduce the net assessed value to $69,000. The $69,000 is multiplied times the tax rate of 3.46 percent, which yields a taxable value of $2,387. The $2,387 is multiplied times the mills. In this example, let's assume it's a total of 400 mills, which would provide for property taxes of $955 for the tax year. (Multiply $2,387 by.400.) BILLINGS PUBLIC SCHOOLS TOTAL IMPACT OF CURRENT MILLS Fiscal Year Market Value of Home $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Less Homestead Exemption 62,000 62,000 62,800 64,000 65,200 66,400 68,000 68,000 Taxable Market Value 138, , , , , , , ,000 Taxable Valuation of Home 4,775 4,775 4,747 4,706 4,664 4,623 4,567 4,567 Total Property Tax $ 902 $ 1,007 $ 1,010 $ 997 $ 993 $ 883 $ 885 $

122 The following chart displays the tax burden trend for eight years for the average homeowner per mills levied each year. Tax Burden of Average Homeowner $1,007 $1,010 $997 $993 $902 $883 $885 $ Total Property Tax Bond Amortization Schedule BILLINGS PUBLIC SCHOOLS BOND AMORTIZATION SCHEDULE General Obligation Bond Year ending June 30, Principal Interest 2005 $ 3,890,000 $ 280, ,465, , ,540, , ,615,000 78,450 $ 11,510,000 $ 696,