Lee s Summit R-VII School District Annual Budget. We prepare each student for success in life.

Transcription

1 Lee s Summit R-VII School District Annual Budget We prepare each student for success in life. Stansberry Leadership Center 301 NE Tudor Road Lee s Summit, MO

2 ANNUAL BUDGET OF THE LEE S SUMMIT R-7 SCHOOL DISTRICT JACKSON/CASS COUNTY LEE S SUMMIT, MISSOURI FOR THE FISCAL YEAR

3 EXECUTIVE SUMMARY TABLE OF CONTENTS Message from the Superintendent... 3 Introduction... 4 Comprehensive School Improvement Plan CSIP... 5 District Priorities... 6 District Overview... 7 Personnel Resources Performance Results Budget Overview Budget Calendar Fund Accounting Budget Considerations for Revenue Expenditures Budget Schedules Fund Balance Budget Forecast Property Taxes Board Members and Administrators Meritorious Budget Award ORGANIZATIONAL SECTION Mission Statement District Entity Size and Scope Reporting Governance About the School Board Board Members District Administrators Organizational Chart District Map School Information Comprehensive School Improvement Plan CSIP Measurement Basis of Accounting Classification of Revenue and Expenditures Classification of Revenue by Object Classification of Expenditures by Fund Classification of Expenditures by Function Classification of Expenditures by Object The Budget Process Budget Alignment Budget Planning Budget Calendar Budget Adoption Financial Accountability Local Revenue Sources i

4 Summary of Significant Accounting Policies Reporting Entity Fund Accounting Basis of Accounting Inventories Cash and Temporary Investments Taxes Changes in Long Term Debt Employee Compensation Pension Plans Deferred Compensation Plan Post-Employment Benefits Insurance Program FINANCIAL SECTION Significant Revenue Sources Revenue Revenue Forecast Significant Expenditure Categories Expenditures Expenditure Forecast Budget Schedules Combined District Funds General (Incidental) Fund Restricted Insurance Fund Teachers (Special Revenue) Fund Debt Service Fund Bond Fund Capital Projects Fund Long Range Capital Improvement Plan Nutrition Services Fund Before and After School Services Fund Student Activity Fund Fund Balance/Fund Balance Forecast INFORMATIONAL SECTION Assessed Valuation Property Tax Rate Calculation Property Taxes Assessed Valuation / Market Value Property Tax Market Value Estimations Property Tax Levy and Collections Alternative Tax Collections Enrollment History and Projections Applied Economics Projection Scope Applied Economics Process Applied Economics Conclusions Program Capacity and Enrollment Estimates ii

5 Budget Allocations Building Allocations Equipment Allocations Budget Allocation Summary Debt Service Debt Service/Lease Principal and Interest Detail of Outstanding Bonds/Lease Purchase Projects Funded by General Obligation Bonds Highly Qualified Staff Staffing History Summary (FTE) Degrees of Certified Staff Professional Staff with Advanced Degrees Years of Experience Professional Staff Staff Retention Key Student Performance Indicators ACT Drop-out/Free-Reduced Meals Graduates/Student Attendance Rate MAP Results School Calendar Glossary iii

6 A special THANK YOU to the exceptionally talented R-7 students and staff for sharing their artwork featured throughout the budget.

7 EXECUTIVE SUMMARY Lilly W., Lee's Summit High School Courtney M., Lee's Summit High School The Executive Summary is the first major section of the school budget document. It highlights important information contained within the budget. Users may rely on this section for an overview-summary of the entire budget document. 1

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9 SUPERINTENDENT S MESSAGE Dear Lee s Summit R-7 Community, Our district s budget was developed with the input of a number of R-7 employees and community groups as well as being reviewed and approved by our Board of Education. The goal of this budget is to support our district s mission: To prepare each student for success in life. To help ensure that student success is at the heart of our budget, we maintain a constant focus on financial planning and good stewardship of our district s resources. Our district continues to grow in enrollment with our student count reaching 18,157 for This is a 230-student jump over our previous year s enrollment and continues an ongoing growth trend. Planning to meet the needs of our increasing student population is an important aspect of this budget as well as our district s Comprehensive Facility Master Plan. The Lee s Summit R-7 budget is also aligned to our Board of Education s priorities for this school year. The three priorities include student achievement, learning environments and communication. They are listed below. 1. Increase the learning and achievement of every child through the development of a comprehensive academic framework informed by the needs of our students, the district s strategic plan and the 2016 Academic Systems Review. 2. Ensure equitable access to 21st century learning environments by engaging stakeholders in a process to update the district s Comprehensive Facility Master Plan to meet the instructional and programming needs of all pre-k-12 students. 3. Strengthen public trust in the district s governance leadership team by systemically enhancing communication, involvement and collaboration to ensure constructive engagement within the school district community. This budget publication is designed to help our district be more transparent by providing readily available financial information in an understandable format. I appreciate your interest in our district and our annual budget. Our involved families and supportive community members are truly the foundation of our district s success, and we greatly appreciate you. Yours in the work, Dr. Dennis Carpenter, Superintendent of Schools Dennis L. Carpenter, Ed.D. Superintendent 3

10 INTRODUCTION The following document represents the Annual Budget for the Lee s Summit R-7 School District (District) for the fiscal year, beginning on July 1, 2017 and ending on June 30, For compliance with state law and local best practice to provide transparent and useful financial information, it is the District s responsibility to develop an annual budget for approval by the Board of Education. Budgeting is a continual process involving community stakeholders, staff, site and department leadership, administration, and the Board of Education. The purpose of this document is to provide a planning mechanism for District leadership consistent with the District s mission, vision, commitments and comprehensive school improvement plan (CSIP-Destination 2021). MISSION We prepare each student for success in life. VISION Lee s Summit R-7 is an exemplary school district, graduating students who are college and career ready with the competitive advantage necessary to be successful. Lee s Summit R-7 reflects a culture of respect and acceptance. Collaboration is an expectation that fosters mutual understanding and a focus on student achievement and staff development. Lee s Summit R-7 encourages innovation and creativity, recognizing student learning as our fundamental purpose. COMMITMENTS We commit to: Engaging students in research-based programs in a technology-rich environment. Embracing open, honest two-way communication. Promoting continuous improvement through data-driven decision-making. Sustaining positive relationships among students, staff, families and community members. Ensuring a rigorous and relevant learning experience that leads to success for each student. Partnering with students in identifying and achieving their learning goals. Continuing a safe and caring environment. 4

11 DESTINATION COMPREHENSIVE SCHOOL IMPROVEMENT PLAN The Lee s Summit R-7 Comprehensive School Improvement Plan or CSIP provides a guide for our school district with its major emphasis on student achievement. Developed by a community team and approved by the Board of Education, the CSIP focuses on five areas governance; student performance; highly qualified staff; facilities, support and instructional resources; and parent and community involvement. The five-year plan includes a number of components to guide all efforts, includes goals and tasks to improve, enhance accountability and is also part of the district s evaluation process through the State of Missouri. The school year is the second year of the District s most recently developed CSIP Destination The five areas of the CSIP, including the goals for each focus area are listed below including the budget allocation by goal. Governance Goal One: Vision and Accountability: In collaboration with administration, the Board will establish and monitor annual goals for student achievement and instruction, as well as efficient and effective operations and fiscal planning. Goal Two: Policy and Community Leadership: Through collaboration among the board and administration; establish and maintain policies and procedures that create a foundation for maximizing student achievement and managing district resources effectively. Goal Three: Board and Superintendent Team: The Board and Superintendent will respectively govern and administer the school district in a collaborative manner that leads to a positive impact on student achievement and efficient and effective operations Budget Allocation: $24,295 Student Performance Goal One: Each student will be provided a personalized learning experience that creates student ownership of learning thereby demonstrating growth in student achievement Budget Allocation: $1,045,970 Goal Two: The District will increase student connectedness and engagement to the school experience Budget Allocation: $2,280,000 Goal Three: Students will demonstrate academic achievement as measured by identified targets at the district, elementary and secondary levels Budget Allocation: $49,500 5

12 Highly Qualified Staff Goal One: Attract and retain quality staff while increasing gender and ethnic diversity ten percent each year Budget Allocation: $7,867,142 Goal Two: Provide high quality professional learning that prepares each staff member to successfully support an inclusive learning environment Budget Allocation: $963,233 Facilities, Support and Instructional Resources Goal One: Develop and evaluate the annual budget for alignment of district resources with the Comprehensive School Improvement Plan, Comprehensive Facilities Master Plan and other budget planning processes to ensure compliance with the Board of Education targeted financial fund balance reserves Budget Allocation: $90,000 Parent and Community Involvement Goal One: Increase the number of community members volunteering in individual school and district locations by enhancing relationships and more fully engaging citizens Budget Allocation: $66,807 Goal Two: Increase contributions of time, talent and treasure to Lee's Summit R-7 programs and organizations that supplement and support the mission of the school district. Goal Three: Develop creative global communication vehicles to promote, facilitate and enhance family, community and business engagements Budget Allocation: $12,000 Additional CSIP information is available at: DISTRICT PRIORITIES Annually the Board of Education collaborates with the Superintendent s Leadership Team to define annual priorities. Building upon the district s tradition of excellence and continuous improvement in student learning, the Board of Education commits to the following priorities for the school year. 1. Increase the learning and achievement of every child through the development of a comprehensive academic framework informed by the needs of our students, the district s strategic plan and the 2016 Academic Systems Review. 2. Ensure equitable access to 21st century learning environments by engaging stakeholders in a process to update the district s Comprehensive Facility Master Plan to meet the instructional and programming needs of all pre-k-12 students. 6

13 3. Strengthen public trust in the district s governance leadership team by systemically enhancing communication, involvement and collaboration to ensure constructive engagement within the school district community. These goals align with the focus of the district s strategic plan. While each Board priority is championed by a member of the Superintendent's Leadership Team with the guidance of the Superintendent, a variety of individuals contribute to the development of recommendations and all work associated with these priorities. The Superintendent s Leadership Team will provide regular updates to the Board of Education to allow the Board to monitor the work associated with the priorities while also affording the opportunity for Board member inquiry and contribution. The timeline is as follows: Monthly informal updates via Board Update Quarterly formal presentations to the Board at Monthly Meeting September 22, 2017 October 26, 2017 November 10, 2017 January 18, 2018 December 8, 2017 April 12, 2018 March 9, 2018 June 14, 2018 May 11, 2018 DISTRICT OVERVIEW The Lee s Summit R-7 School District, in its present form was reorganized when 16 rural elementary districts combined with the Greenwood School District and the Lee s Summit City School District. When this reorganization occurred in 1949, the newly formed Reorganized School District No. 7 of Jackson County s enrollment totaled 1,200 students. Today, the District (more commonly known as the Lee s Summit R-7 School District or just R-7) provides education for approximately 18,157 students in kindergarten through grade 12. The District s pre-kindergarten early education center will provide services to approximately 359 students for school year The District is an accredited district in Missouri and covers over 117 square miles. The boundaries of the District encompass the communities of Lee s Summit, Greenwood, Lake Lotawana, and Kansas City, Missouri. The District boundaries incorporate parts of Jackson County, Missouri and a small portion of Cass County, Missouri. The District s enrollment has shown continued growth during the past ten years. An increase of 230 students is projected for the school year when compared to the September 2016 student enrollment. The following chart provides actual enrollment, expressed in student headcount, since 2006 and projected enrollment through The district is projected to continue steady student enrollment growth through the school year when total district enrollment is anticipated to reach 20,298 students. 7

14 K-12 ENROLLMENT - HISTORICAL & PROJECTED 25,000 20,000 15,000 16,734 20,298 10,000 5,000 0 The District s facilities currently include the following: 18 elementary (grades K-6) schools, three middle (grades 7-8) schools, three high (grades 9-12) schools; one alternative school, one technology center, one special services center and one early childhood center. In addition to these school buildings, the District owns and maintains six support facilities providing administrative, operational and educational services. The following chart shows the K-12 school building sites, with program capacity and projected student enrollment beginning with through the school year. 8

15 STUDENT ENROLLMENT SCHOOL YEARS TO % Actual Actual Actual Actual Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Program Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. ELEM ENTARY SCHOOLS: Capacity Cedar Creek Greenwood Hawthorn Hill Hazel Grove Highland Park Lee's Summit Longview Farm Mason Meadow Lane Pleasant Lea Prairie View 1,151 1, Richardson Summit Pointe Sunset Valley Trailridge Underwood Westview Woodland Other TOTAL ELEMENTARY: 11,301 9,186 9,147 9,215 9,268 9,338 9,377 9,403 9,421 9,445 9,497 9,608 9,750 9,937 10, % 0.02% 0.74% 0.58% 0.76% 0.42% 0.28% 0.19% 0.25% 0.55% 1.17% 1.48% 1.92% 1.77% MIDDLE SCHOOLS: Bernard Campbell 1, ,047 1,073 1,078 1,114 1,119 1,093 1,079 1,074 Pleasant Lea 1, Summit Lakes 1, ,018 1,101 1,121 1,104 1,099 1,156 1,179 1,181 1,129 1,090 1,121 1,140 Other TOTAL MIDDLE SCHOOL: 3,366 2,791 2,758 2,742 2,857 2,944 2,976 3,076 3,157 3,211 3,257 3,199 3,137 3,143 3, % 1.36% -0.58% 4.19% 3.05% 1.09% 3.36% 2.63% 1.71% 1.43% -1.78% -1.94% 0.19% 0.70% HIGH SCHOOLS: Lee's Summit 2,166 1,799 1,794 1,778 1,794 1,699 1,746 1,758 1,783 1,862 1,846 1,919 1,931 1,956 1,970 Lee's Summit North 2,166 1,912 1,849 1,856 1,902 1,889 1,930 1,943 2,026 2,127 2,236 2,309 2,362 2,366 2,366 Lee's Summit West 2,285 1,812 1,898 1,991 2,080 2,118 2,215 2,321 2,406 2,444 2,497 2,504 2,571 2,551 2,518 Other TOTAL HIGH SCHOOL: 6,617 5,653 5,705 5,790 5,802 5,875 6,063 6,194 6,386 6,601 6,746 6,898 7,032 7,040 7, % 0.56% 1.49% 0.21% 1.26% 3.20% 2.16% 3.10% 3.37% 2.20% 2.25% 1.94% 0.11% -0.28% DISTRICT K-12 TOTAL 21,284 17,630 17,610 17,747 17,927 18,157 18,416 18,673 18,964 19,257 19,500 19,705 19,919 20,120 20,298 STUDENTS +/ GROWTH % 0.17% -0.02% 0.78% 1.01% 1.28% 1.43% 1.40% 1.56% 1.55% 1.26% 1.05% 1.09% 1.01% 0.88% 9

16 PERSONNEL RESOURCES Personnel costs account for approximately 80% of the District s operating expenditures. To provide support for the students, the District employs over 2,500 teachers, support personnel and administrators. During the past five years, the Board of Education has demonstrated a commitment to provide staffing to meet the needs of students and District operation. The budget includes an increase of FTE (Full Time Equivalent) positions. FIVE-YEAR STAFFING ADDITIONS BY CATEGORY OF POSITION YEAR ADMINISTRATIVE* OTHER CERTIFIED** TEACHER SUPPORT*** TOTAL Yr. Total NOTES: *Ninety-eight percent of total added administrative positions during FY14 to FY18 are school site administrative positions. **Other Certified positions include school counselors, library media specialists, instructional/curriculum specialists, parent educators, behavior coaches, school improvement coordinators, speech/language pathologists, school psychologists, physical or occupational therapists, special services process coordinators. ***Support positions include direct classroom teacher support, student instruction assistance and operational positions in nutrition services, transportation and facilities. PERFORMANCE RESULTS The Lee s Summit R-7 School District, a professional learning community, continues efforts to be a leader in the field of public education and has a long-standing tradition of academic excellence. The following achievements highlight this focus on academic excellence. Mason Elementary students inspire a new $1 million first ever outdoor interactive exhibit, Simple Machines at Play, at Kansas City s Science City. 10

17 Summit Lakes Middle School students capture championship in CyberPatriot nationals. All three high school robotics team quality for national competition, two schools also win first at state-wide competition. Lee s Summit West High School robotics team wins top international award in China tourney. Three Lee s Summit West High School students earned the top score on the ACT. Thanks to a partnership with the University of Central Missouri, the R-7 School District is opening a groundbreaking new facility in The Missouri Innovation Campus, home to Summit Technology Academy, has received national recognition for reshaping the way students experience education, accelerating the time it takes students to complete a four-year college degree and significantly reducing college debt. The unique programs located at this new school provide students with jobready skills that are highly sought after by business. Lee's Summit R-7 students scored above state and national averages on the ACT exams. They also scored above the state average in each area tested and each grade level as part of the 2016 Missouri Assessment Program (MAP) tests. Lee's Summit R-7 is home to three Missouri Teachers of the Year and has had 13 staff members named Teacher of the Year finalist in the state's prestigious program. A $40 million bond issue was approved by close to 80 percent of school district voters during April In addition to a new Missouri Innovation Campus, the issue is funding school improvements in the areas of classroom instruction, safety and security, health and wellness, ADA access renovations and special education as well 11

18 as maintenance projects designed to protect the district s investment in its schools. Also included are playground safety upgrades for all elementary schools soft play areas and replacement of deteriorated play equipment. Approximately 81 percent of the R-7 Class of 2017 indicated college plans, according to a spring survey of graduates. The Class of 2017, a total of 1,428 graduates, was also offered over $28 million in college scholarship potential. All three R-7 high schools offer the International Baccalaureate program, a rigorous curriculum only offered in 12 Missouri high schools. Community, parent and staff contributions to the district remain at a high level through the Lee's Summit Educational Foundation, PTAs and other parent booster organizations. PROGRAMS OUTSTANDING COMMUNITY SUPPORT & Lee's Summit West Robotics Team in China 12

19 INVOLVEMENTROUND 84% OF20 1 Visit for additional student performance data. BUDGET OVERVIEW Missouri state statutes require school districts to prepare an annual budget to provide for the instructional and support operations of the school district. Section , RSMo., requires an annual budget including components identified in the law. The budget development, implementation, and maintenance process is a year-round process. 13

20 Beginning in December, budget packets are made available electronically to all budget managers within the District. The budget managers use their budget allocation to enter their proposed budgets into the budget allocation worksheet. In addition, budget managers have the opportunity to request additional human resources, operating funds, technology, and/or capital projects by completing the appropriate non-allocated request. Based on the projected revenues, the expenditure budget may be adjusted taking into account the needs of the schools and input from the Board, school principals, administrative staff, district-wide teams, parents, and other community members before it is presented to the Board in June for approval prior to the new fiscal year. The budget is amended throughout the year, as needed. BUDGET CALENDAR June 1, 2017 Finance Work Session - Board of Education Budget Guidelines Review - Superintendent's Leadership Team July - August 2017 Jackson/Cass Preliminary Assessed Values Provided by County Assessor Jackson/Cass County Assessor's Office Board of Equalization Assessment Appeals September 2017 Jackson/Cass Final Assessed Values Provided by County Assessor Community/Public Tax Rate Hearing and approval of the 2017 Tax Rate - Board of Education Finance Work Session - Board of Education Amended Budget - Board of Education Enrollment estimates confirmed for school year October Budget enrollment projections and allocation revision December 2017 Non-Allocated Request process review (Human Resources, Operation, Instruction, Technology, Capital) - SLT January Budget Assumptions, demographics and enrollment projections February - March 2018 Non-Allocated Request approval review (Human Resources, Operation, Instruction, Technology, Capital) - SLT Preliminary Budget revenues, expenses, fund balances estimates Finance Winter Work Session - Board of Education Purchase Order submittal deadline April - May 2018 TEAM Lee's Summit (Salary, Benefits and Quality of Work Life recommendations) June 2018 Finance Summer Work Session - Board of Education Amend the Final Budget - Board of Education Approve the Preliminary Budget - Board of Education 14

21 FUND ACCOUNTING Missouri statutes, in conjunction with generally accepted accounting principles (GAAP) and in accordance with the definitions of the Governmental Accounting Standards Board (GASB) statement on principles on fund accounting systems, have been very specific in certain areas of public school finance. These laws prescribe the duties of the treasurer and secretary of the Board of Education, establish specific funds which must be used in the district accounting process, and place certain limits upon the use of revenue and expenditure transactions allowed in these various funds. As a result, the utilization of available money is limited to only the prescribed fund and in the authorized accounting process. For the school year, there have been no significant Board policy or state regulation changes impacting this budget presentation. The Lee s Summit R-7 School District accounts for revenues and expenditures in nine specific funds, which collapse into five major funds: Incidental, Teachers, Debt Service, Capital Projects and Restricted. General Fund: Incidental Fund Groups for Generally Accepted Accounting Principles Restricted Fund: Nutrition Services Student Activities Before and After School Services Insurance Reserve Special Revenue Fund: Teachers Debt Service Fund: Debt Service Capital Projects Fund: Capital Projects Bond State Required Funds: Incidental Teachers Debt Service Capital Projects Fund 1: Incidental (General) - Used to account for all financial resources except those required to be accounted for in another fund. Transactions are general operating expenditures. Fund 2: Teachers (Special Revenue) - Used to account for revenue legally restricted to certified salaries, health insurance, benefits and out-of-district tuition. Fund 3: Debt Service - Restricted for the accumulation of resources for and the payment of general long-term debt principal, interest and fees. Fund 4: Capital Projects - Restricted to activities related to the acquisition of or construction/remodeling/ renovation of major capital assets/properties and bond expenses. 15

22 Fund 5: Restricted - Includes Nutrition Services, Before & After School Services, and extracurricular (student activity) accounts for expenditures from non-taxpayer resources. The District s budget for the fiscal year includes total revenues, expenses and fund balances as a whole and for each of the District funds. Detailed fund schedules provide additional information on the programs within each fund and include comparison information as required by state law as a minimum. The detailed budget schedules provide revenue and expense information consistent with the Missouri Accounting Manual published by the Department of Elementary and Secondary Education (DESE). Revenues are summarized by object and source, while expenses are summarized by fund, function and object. REVENUE BUDGET CONSIDERATIONS FOR The total revenue budget for is estimated to increase by $4.8 million (2.06%) to a total of $242 million when compared to the revenue projection. The significant operating fund revenue components, which account for slightly over 87 percent of the operating revenue in the budget, are received in the three revenue areas identified below: Local Property Taxes Increase estimated at $2.5 million (2.9% increase) Local property tax revenue is recorded in the General, Debt Service and Capital Projects fund, based on the levy apportioned to each fund. The budget includes an estimated total levy of $5.8618, a decrease from the school year. The tax rate was calculated using an assessed valuation of $1,942,772,167, a 6.24 percent increase from the prior year s certified assessed values. The increase in assessed value is projected to result from increases in new construction, as 2017 is a reassessment year. The new construction increase has been estimated by the District, using housing permit data provided by the City of Lee s Summit. The District also expects a slight increase in personal property values. The final tax rate will be established, using forms provided by the Missouri State Auditor s Office, after certified values from Jackson and Cass Counties are provided, prior to October 1, 2017, as required by Missouri Statute. Local tax collection is budgeted at a rate of 95.5 percent of total taxes assessed. Proposition C Sales Tax Increase estimated at $401,751 (2.41% increase) The Missouri Department of Elementary and Secondary Education estimates the amount of funding per weighted ADA (WADA) will be approximately $988, an increase of approximately nine dollars per WADA from the prior year. For , the District is budgeting $988 per previous year WADA, which results in a projected increase in this revenue area due to increased student enrollment and an increase in the per student amount. All Proposition C sales tax revenue is recorded in the Teachers Fund. State Basic Formula Minimal increase estimated at $72,215 (0.10% increase) 16

23 Basic Formula revenues (including the Classroom Trust Fund) are projected using a State Adequacy Target (SAT) of $6,200. This category of revenue shows a slight increase due to student enrollment growth. The calculation includes a decrease in the dollar value modifier (DVM) from in to for A total enrollment growth of 230 students (1.28 percent increase from the school year enrollment). The official student enrollment number is based on the last Wednesday in September, consistent with reporting to the Missouri Department of Elementary and Secondary Education. All Basic Formula revenue is recorded in the Teachers Fund. Other categories of revenue are estimated based on historical and prior year receipt patterns and District allocations of revenue, impacting the General, Teachers, Capital Projects and Debt Service Funds. Specifically: Other local revenue is budgeted to increase in revenue categories of other taxes and miscellaneous local sources including nutrition services. County increases are indicative of state assessed utility changes. Other state revenues are expected to decrease primarily due to a reduction in state funds available to reimburse for high cost special education students. Federal revenue shows an increase based on the reimbursement from energy grant funds for the purchase of compressed natural gas buses. Revenue in the Nutrition Services Fund is impacted by an increase in student meal prices ranging from five to ten cents. The prices for adult meals increased by 15 cents for regular meals and 50 cents for premier meals. The department is estimating student and adult participation to remain consistent with prior year numbers. Revenue in the BASS Fund is impacted by the number of children participating in programs offered. The BASS program did not increase tuition fees for the school year. It is anticipated the number of children serviced by the program will remain consistent. Revenue in the Student Activity Fund is expected to remain stable, with the exception of a slight reduction due to the elimination of a $10 programming/activity fee for middle and high school students. The graph identifies the percent of revenue for the school year by source of funds. 17

24 The table below provides a comparison of total revenue for school years FY14 to FY18. TOTAL REVENUE FY14 FY15 FY16 FY17 FY18 CHANGE FY17 TO FY18 ACTUAL ACTUAL ACTUAL PROJECTED BUDGET $$$ %%% LOCAL Property Tax $105,703,279 $106,771,838 $108,915,185 $113,382,076 $117,640,406 $4,258, % Proposition C $14,831,594 $15,452,501 $15,947,083 $16,680,976 $17,082,727 $401, % Restricted Funds $11,660,626 $11,946,943 $12,700,337 $12,472,452 $12,688,464 $216, % Interest Earnings $4,293,013 $5,446,037 $6,448,880 $2,058,444 $2,053,310 -$5, % Other Local $3,659,464 $3,099,483 $3,821,236 $4,896,451 $4,665,818 -$230, % TOTAL LOCAL $140,147,976 $142,716,802 $147,832,721 $149,490,399 $154,130,725 $4,640, % TOTAL COUNTY $3,550,918 $3,902,156 $4,023,669 $4,164,239 $4,398,080 $233, % TOTAL STATE $64,028,163 $66,865,433 $69,130,251 $74,370,267 $73,802,635 -$567, % TOTAL FEDERAL $8,025,067 $9,368,116 $8,732,095 $9,251,108 $9,829,460 $578, % TOTAL UNRESTRICTED REVENUE $215,752,123 $222,852,506 $229,718,736 $237,276,012 $242,160,900 $4,884, % BOND SALE/ REFUNDING $29,345,000 $71,780,000 $40,000,000 $0 $0 $0 0.00% EXPENDITURES All funds where salary and benefits are recorded are impacted by the salary and benefit changes approved for the school year and listed below, including the following funds: General (Incidental), Special Revenue (Teachers), Nutrition Services, BASS and Student Activity. The budget includes salary and related benefit increases of $5.2 million for District employees. Employee salary schedules base increases are indicated in the table below, employees did not receive step movement for longevity. Schedule Base Increase Percent Increase Administrator $0.80 per hour 3.32% Professional $0.59 per hour 3.46% Support $0.35 per hour 3.46% Teacher $1,500 annual 3.57% Salary adjustments provided to District employees earning advanced degrees. Targeted salary increases for extra duty contracts, with non-scheduled salary increases tied to the average total salary increase. The salary impact is estimated at $576,148. A salary schedule was formalized for various types of hourly pay for certified and support staff. In addition, salaries were development for online class instructors and for instructors of college credit courses. The estimated increase to implement this hourly salary schedule equals $182,

25 Total district-wide additional net FTE staff positions, an estimated cost increase of $1,863,144. The budget impact is offset by redirection of $758,149 in existing resources, resulting in a net budget expense increase of $1,104,995. Benefit increases include a projected eight percent for health insurance for the plan year beginning on January 1, In addition, the budget includes increases in benefits tied to salary including state-mandated retirement, social security/medicare, life insurance and disability insurance. Total budgeted expenditures in the operating funds increased by $7.9 million or 4.17 percent from the projected budget due to increases in employee salaries, additional staff, benefits, increases in general instructional materials, supplies and other site operating expenses due to student enrollment growth and operational increases. The increases for expenses other than salary and benefit will impact the General (Incidental) fund. The District budgeted for a $1.5 million decrease in the Operating (combined General and Teachers) fund balance for the year. This decrease will make the projected ending reserve balance percent, which remains well above the targeted minimum fund balance of 15 percent. The ending fund balance is equivalent to 3.33 months of operating expenses. The Capital Projects fund budget includes estimated expenses of $7.8 million and includes lease purchase payments for multiple projects approved in prior years. Expenditures include funding for instructional, music and regular equipment budgeted at the site level on a per student allocation. District-wide needs are restricted to funding for the Capital Projects Team, equipment tied to additional staff positions, and funds to repay the lease purchase of technology, compressed natural gas (CNG) school buses, facility site and CNG maintenance vehicles. Funding in the Capital Fund is achieved through the resources provided by a $0.05 levy and a budgeted transfer from the Incidental Fund to the Capital Projects fund. The District was able to address a number of maintenance projects with revenue received from the 2015 bond issue, to preserve and build the fund balance in the Capital Projects fund. During the school year, the process to revise the District s Comprehensive Facility Master Plan (CFMP) will begin, consistent with the Board of Education s priority number 2. Updated student demographic data will be received during November 2017 and will be the primary focus for the District s short term (one to three years) planning to address facility space needs. For the school year, student enrollment uses approximately 85 percent of the district-wide school site capacity. With projected student enrollment increases, facility needs are an immediate concern. To address the board of education s priority number 2, a CFMP team will be established and will begin addressing identified parameters in terms of 21 st century learning spaces. Previously identified major building projects including elementary, middle and high schools are expected to be part of the CFMP team s planning work. The District currently has two parcels of land designated as future school sites. Funding for the projects identified in the CFMP will be primarily from general obligation bonds. 19

26 In the Bond Fund, the remaining bond proceeds from the issue approved by voters in April 2015, approximately $5.2 million will be used to complete the remaining projects identified at the election, with the remaining bond proceeds prioritized by the board of education during the school year. The budget includes the balance of the 2015 bond issue resources as a current year expense. The Debt Service Fund expenses for are increased by approximately $41.3 million dollars for a payment related to a prior year refunded bond. The funds to make this payment reside in the Debt Service fund balance. Section , RSMo, and administrative interpretations provide for several interfund transfers that a school district may make. The budget includes interfund transfers from the General Fund to the Teachers Fund for expenses in the Teachers Fund in excess of current revenue. This transfer is required for statutory compliance since the Teachers Fund has a zero beginning fund balance and statutes require the District to transfer an amount sufficient to cover all expenditures that are not covered by another source of revenue. An interfund transfer is also budgeted from the General Fund to the Capital Projects Fund for expenses not covered by another source of revenue. The annual amount of transfer is capped at a maximum of $162,326 or 7% multiplied by the SAT, multiplied by the WADA. This calculation is performed by DESE and finalized on June 30, The preliminary transfer amount calculated by DESE for is $7,496,503 with the District budgeting a transfer of $2,641,989 based on the amount of expenses. The table below provides a comparison of total expenses for school years FY14 to FY18. 20

27 The graph provides the expenditure areas and percent of total budget. For comparison purposes with other local school districts, the graph includes data collected by the Department of Elementary and Secondary Education on an expense per average daily attendance (ADA) basis. The data from is the latest data available at the time of budget preparation. 21

28 BUDGET SCHEDULES The following pages present the budget schedules for all budgeted funds within the District. In each schedule, information is presented for the four prior years, the budget year and three projected budget years. The schedules are presented for all funds in the District, followed by the detail for each individual fund. 22

29 Actual COMBINED ALL DISTRICT FUNDS Actual Actual Budget Proposed Projected Projected Projected EXPENDITURES (Continued) School Administration Employee Salaries & Benefits $6,919,066 $7,483,147 $7,822,216 $7,871,414 $8,186,271 $8,372,236 $8,557,662 $8,739,214 Purchased Services $88,299 $105,427 $112,774 $119,887 $120,247 $123,290 $128,516 $135,514 Materials & Supplies $151,710 $142,252 $163,410 $227,546 $228,274 $234,004 $243,875 $257,104 Equipment Central Services Employee Salaries & Benefits $4,669,617 $5,491,792 $6,605,758 $6,050,962 $6,293,001 $6,533,075 $6,761,582 $6,965,130 Purchased Services $1,741,038 $2,108,726 $3,013,910 $4,308,679 $4,321,605 $4,430,233 $4,526,871 $4,602,622 Materials & Supplies $1,429,753 $347,133 $240,334 $546,621 $548,370 $562,134 $585,848 $617,627 Equipment $341,828 $29,218 $86,775 $90,831 $90,849 $90,868 $90,886 $90,904 Operation and Maintenance Employee Salaries & Benefits $12,021,294 $12,189,467 $11,895,900 $11,996,157 $12,746,003 $13,291,610 $13,705,597 $14,121,545 Purchased Services $1,725,888 $1,990,299 $1,699,314 $3,213,047 $3,222,686 $3,304,233 $3,444,307 $3,631,866 Materials & Supplies $4,717,709 $4,879,422 $4,248,502 $4,647,766 $4,662,639 $4,779,671 $4,981,301 $5,282,347 Equipment $1,732,247 $1,769,322 $200,097 $181,194 $181,231 $181,267 $181,303 $181,339 Transportation Services Employee Salaries & Benefits $6,293,263 $6,519,596 $6,719,041 $6,883,647 $7,578,992 $7,730,466 $8,168,807 $8,731,891 Purchased Services $857,330 $814,059 $729,578 $895,661 $898,348 $921,080 $960,127 $1,012,410 Materials & Supplies $965,648 $1,058,066 $1,063,155 $1,280,537 $1,284,635 $1,316,879 $1,372,432 $1,446,880 Equipment $1,731,341 $1,805,330 $2,492 $1,695,977 $10,000 $10,250 $10,506 $10,769 Nutrition Services Employee Salaries & Benefits $3,588,533 $3,839,696 $3,917,978 $3,974,747 $4,130,496 $4,192,453 $4,255,340 $4,319,170 Purchased Services $89,384 $134,476 $118,716 $95,894 $88,700 $90,000 $91,314 $92,647 Materials & Supplies $2,972,196 $3,080,732 $3,051,366 $2,985,325 $3,357,000 $3,404,669 $3,451,994 $3,503,774 Equipment $218,464 $57,192 $63,940 $117,290 $75,000 $76,050 $77,107 $78,264 Community Services Employee Salaries & Benefits $3,470,657 $3,853,211 $3,967,858 $3,967,744 $4,106,616 $4,208,116 $4,308,819 $4,406,008 Purchased Services $166,184 $273,575 $236,843 $230,852 $231,545 $233,996 $236,265 $238,226 Materials & Supplies $354,570 $371,593 $324,406 $473,652 $475,167 $483,312 $490,594 $496,429 Equipment $61,781 $69,244 $5,040 $5,995 $5,996 $5,997 $5,999 $6,000 Site/Facility Improvements Construction Contracts $1,226,003 $890,678 $12,077,093 $20,756,121 $6,739,372 $5,325,994 $5,405,884 $5,486,972 Equipment $24,101 $53,572 $2,377,995 $1,134,922 $103,400 $100,000 $100,000 $100,000 Land Purchase $100,000 $3,091,375 $60,000 Purchased Services $407,570 $26,518 Bond and Lease Payments Bond/Lease Principal $42,441,347 $45,641,448 $41,594,295 $18,667,335 $61,309,985 $18,616,625 $17,082,949 $16,790,108 Bond/Lease Interest $9,419,234 $8,710,739 $9,162,802 $8,839,664 $8,361,761 $5,693,681 $5,196,996 $4,735,644 Other Costs $227,575 $443,310 $143,139 $4,292 $10,000 $10,000 $10,000 $10,000 TOTAL EXPENDITURES $237,902,578 $250,078,461 $265,181,306 $255,205,105 $290,098,178 $248,408,119 $251,755,903 $256,549,216 FUND BALANCE Beginning Fund Balance $105,016,182 $112,210,728 $156,764,773 $161,302,203 $143,373,110 $95,435,832 $95,532,552 $99,422,184 Excess Revenue/Expense $7,194,545 $44,554,046 $4,537,430 -$17,929,093 -$47,937,278 $96,720 $3,889,632 $4,392,271 ENDING FUND BALANCE $112,210,728 $156,764,773 $161,302,203 $143,373,110 $95,435,832 $95,532,552 $99,422,184 $103,814,455 23

30 GENERAL (INCIDENTAL) FUND The General Fund accounts for general activities or other activities except those required to be accounted for in the Special Revenue, Debt Service or Capital Projects. Actual GENERAL (INCIDENTAL) FUND Actual Actual Budget Proposed Projected Projected Projected REVENUE Local Property Tax $81,654,664 $82,947,422 $84,155,964 $87,489,707 $90,574,958 $92,602,406 $94,056,920 $95,289,153 Other Tax $979,583 $1,107,977 $1,796,675 $1,210,031 $2,096,957 $2,028,265 $2,046,519 $2,201,943 Interest $820,861 $745,036 $708,251 $742,467 $771,700 $784,750 $794,598 $805,000 Other Miscellaneous $507,795 $2,134,016 $2,317,327 $3,768,420 $3,527,000 $3,894,559 $4,185,316 $4,353,249 County Fines, Forfeitures $12,513 $14,366 $7,217 State Assessed Utility $2,521,375 $2,758,942 $2,854,670 $2,909,914 $3,056,879 $3,178,727 $3,305,432 $3,437,188 State Transportation $1,781,606 $2,059,419 $1,562,476 $1,214,750 $1,215,000 $1,215,608 $1,216,215 $1,216,823 Early Special Education $1,842,843 $2,218,677 $2,883,505 $3,142,525 $930,631 $1,058,593 $1,175,038 $1,233,790 Other $819,992 $887,494 $777,125 $859,272 $1,055,002 $1,092,536 $1,135,763 $1,371,531 Federal Medicaid/Title/Grants $1,571,720 $2,448,450 $2,184,658 $1,229,196 $1,144,693 $1,666,424 $1,885,829 $2,122,784 Special Education $3,351,502 $3,833,313 $3,367,165 $3,156,484 $2,827,794 $2,864,260 $2,885,618 $2,905,880 Other $1,000 $750 $2,960 $347,288 $532,992 $607,611 $763,309 TOTAL REVENUES $95,864,453 $101,156,112 $102,615,782 $105,725,725 $107,547,902 $110,919,120 $113,294,859 $115,700,650 EXPENDITURES Instructional Services Employee Salaries & Benefits $10,549,459 $10,700,099 $12,743,198 $12,934,616 $14,377,755 $15,114,336 $15,679,489 $16,143,556 Purchased Services $2,006,743 $4,591,454 $2,561,556 $2,385,097 $2,378,256 $2,412,455 $2,434,655 $2,445,683 Materials & Supplies $2,963,152 $2,787,350 $2,966,193 $2,834,130 $2,874,743 $2,922,322 $2,996,429 $3,018,765 Student Support Services Employee Salaries & Benefits $3,487,352 $2,983,958 $3,819,873 $4,282,163 $4,472,830 $4,648,970 $4,816,256 $4,964,556 Purchased Services $95,405 $199,297 $254,457 $219,357 $220,015 $225,582 $235,145 $247,950 Materials & Supplies $142,587 $106,838 $83,936 $106,245 $106,585 $109,260 $113,869 $120,046 Instruction Support Services Employee Salaries & Benefits $906,673 $597,967 $1,011,638 $1,024,716 $1,081,559 $1,124,150 $1,164,601 $1,200,461 Purchased Services $582,678 $1,031,377 $786,761 $758,961 $758,417 $773,871 $787,136 $796,082 Materials & Supplies $706,750 $569,198 $726,333 $781,195 $783,695 $803,366 $837,256 $882,673 General Support Services Employee Salaries & Benefits $376,110 $462,815 $451,966 $405,189 $428,663 $445,544 $461,576 $475,789 Purchased Services $802,734 $684,982 $532,771 $707,566 $752,027 $771,059 $787,989 $801,255 Materials & Supplies $61,911 $19,955 $20,164 $93,275 $93,573 $95,922 $99,969 $105,391 24

31 Within the General Fund, the District maintains a restricted fund balance, currently a reserve for health insurance future liability tied to the contract termination. For the school year, the Board of Education approved a transfer of $900,000 from the restricted insurance fund to the General Fund to support the salary improvements. Local REVENUE Actual Actual Actual Budget Proposed Projected Projected Other $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 TOTAL REVENUES $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 EXPENDITURES Transfer $0 $0 $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $0 $0 $0 $0 $0 $0 $0 $0 FUND BALANCE RESTRICTED INSURANCE FUND Projected Beginning Fund Balance $0 $1,809,175 $1,910,960 $2,671,404 $2,671,404 $1,771,404 $1,771,404 $1,771,404 Excess Revenue/Expense $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 Transfer In/(Out) -$900,000 ENDING FUND BALANCE $1,809,175 $1,910,960 $2,671,404 $2,671,404 $1,771,404 $1,771,404 $1,771,404 $1,771,404

32 NUTRITION SERVICES FUND The Nutrition Services Fund is a restricted fund within the General (Incidental) fund for state reporting purposes. This fund is used to account for all revenue and expenses associated with providing food services for students. The Nutrition Services program is a self-supporting program and is currently not supplemented with operational funds. Actual NUTRITION SERVICES FUND Actual Actual Budget Proposed Projected Projected Projected Local Food Sales $4,624,348 $4,632,068 $4,750,074 $4,734,470 $5,140,500 $5,173,222 $5,206,658 $5,240,310 Other Miscellaneous $1,436 $4,263 $10,486 $9,190 $10,000 $10,500 $10,500 $10,500 State Breakfast/Lunch $68,261 $53,738 $54,457 $86,583 $97,376 $97,493 $97,611 $97,729 Federal Breakfast Program $407,033 $451,636 $445,020 $586,485 $585,120 $605,872 $627,437 $649,769 Lunch Program $1,723,311 $1,727,319 $1,759,640 $1,846,743 $1,852,880 $1,918,598 $1,986,887 $2,057,603 Other $2,632 $2,707 $21,142 $3,211 $3,200 $3,500 $3,500 $3,500 TOTAL REVENUES $6,827,020 $6,871,732 $7,040,820 $7,266,683 $7,689,076 $7,809,185 $7,932,593 $8,059,411 EXPENDITURES Nutrition Services Employee Salaries & Benef $3,588,533 $3,839,696 $3,917,978 $3,974,747 $4,130,496 $4,192,453 $4,255,340 $4,319,170 Purchased Services $89,384 $134,476 $118,716 $95,894 $88,700 $90,000 $91,314 $92,647 Materials & Supplies $2,972,196 $3,080,732 $3,051,366 $2,985,325 $3,357,000 $3,404,669 $3,451,994 $3,503,774 Equipment $218,464 $57,192 $63,940 $117,290 $75,000 $76,050 $77,107 $78,264 TOTAL EXPENDITURES $6,868,576 $7,112,095 $7,152,000 $7,173,256 $7,651,196 $7,763,173 $7,875,756 $7,993,855 FUND BALANCE Beginning Fund Balance $2,153,863 $2,112,307 $1,871,943 $1,760,763 $1,854,189 $1,892,069 $1,938,082 $1,994,919 Excess Revenue/Expense -$41,556 -$240,364 -$111,180 $93,426 $37,880 $46,012 $56,837 $65,556 ENDING FUND BALANCE $2,112,307 $1,871,943 $1,760,763 $1,854,189 $1,892,069 $1,938,082 $1,994,919 $2,060,474 26

33 BEFORE AND AFTER SCHOOL SERVICES (BASS) FUND The BASS fund is a restricted fund within the General Fund for state reporting purposes. The revenue and expenses for this program are accounted for in the BASS fund. The BASS program is a self-supporting program and is currently not supplemented with operational funds. STUDENT ACTIVITY FUND The Student Activity Fund, used to account for assets held by the school district in a trustee capacity for student activities is a restricted fund within the General Fund for state reporting purposes. Local Actual Actual Actual Budget Proposed Projected Projected Projected Other Miscellaneous $4,205,097 $4,406,687 $4,767,601 $4,701,249 $4,700,000 $4,725,000 $4,748,719 $4,796,206 TOTAL REVENUES $4,205,097 $4,406,687 $4,767,601 $4,701,249 $4,700,000 $4,725,000 $4,748,719 $4,796,206 Student Activity STUDENT ACTIVITY FUND Employee Salaries & Benefit $ 199,455 $ 288,807 $ 370,048 $ 323,468 $ 328,320 $ 330,982 $ 335,583 $ 340,616 Purchased Services $ 1,535,607 $ 1,700,033 $ 1,778,428 $ 1,739,666 $ 1,740,000 $ 1,750,000 $ 1,764,725 $ 1,775,000 Materials & Supplies $ 2,435,480 $ 2,442,323 $ 2,512,283 $ 2,604,211 $ 2,581,000 $ 2,599,000 $ 2,601,920 $ 2,641,234 Equipment $ 87,223 $ 70,781 $ 65,701 $ 103,819 $ 100,000 $ 100,000 $ 100,000 $ 100,000 TOTAL EXPENDITURES $4,257,765 $4,501,944 $4,726,460 $4,771,165 $4,749,320 $4,779,982 $4,802,228 $4,856,850 FUND BALANCE Beginning Fund Balance $2,077,803 $2,025,134 $1,929,877 $1,971,019 $1,901,103 $1,851,783 $1,796,801 $1,743,292 Excess Revenue/Expense -$52,669 -$95,257 $41,141 -$69,915 -$49,320 -$54,982 -$53,509 -$60,644 ENDING FUND BALANCE $2,025,134 $1,929,877 $1,971,019 $1,901,103 $1,851,783 $1,796,801 $1,743,292 $1,682,648 27

34 TEACHERS (SPECIAL REVENUE) FUND The Teachers (Special Revenue) Fund accounts for expenditures for certificated employees involved in administration and instruction. It includes revenues restricted by the State for the payment of certificated salaries. SPECIAL REVENUE (TEACHERS) FUND Actual Actual Actual Budget Proposed Projected Projected Projected REVENUE Local Prop C Sales Tax $14,831,594 $15,452,501 $15,947,083 $16,680,976 $17,082,727 $17,327,655 $17,766,910 $18,210,556 Other Miscellaneous $542,411 $578,941 $835,716 $865,813 $838,818 $897,535 $960,363 $1,027,588 County Fines, Forfeitures $114,858 $146,667 $132,317 $194,838 $164,761 $181,237 $199,361 $219,297 State Basic Entitlement $57,404,484 $59,741,574 $62,240,455 $67,239,663 $66,717,189 $69,205,084 $72,150,584 $74,088,161 Early Special Education $373,966 $2,145,780 $2,356,223 $2,615,408 $2,746,178 Other $1,993,376 $1,773,822 $1,504,144 $1,328,853 $1,500,000 $1,500,000 $1,495,012 $1,300,000 Federal Medicaid/Title/Grants $186,203 $264,092 $549,308 $1,361,494 $1,823,884 $1,567,230 $1,654,930 $1,774,188 Special Education $175,108 $306,600 $289,800 $293,250 $293,940 Other $205 $1,200 TOTAL REVENUES $75,073,132 $77,957,598 $81,209,023 $88,221,911 $90,579,759 $93,324,764 $97,135,818 $99,659,908 EXPENDITURES Instructional Services Employee Salaries & Benefits $90,323,757 $96,759,751 $97,503,197 $100,291,793 $104,988,719 $106,983,504 $109,016,191 $111,087,499 Purchased Services $1,665,999 $1,392,743 $2,826,545 $2,697,416 $2,724,390 $2,763,077 $2,801,483 $2,843,506 Student Support Services Employee Salaries & Benefits $3,546,989 $3,458,857 $3,528,905 $3,876,201 $4,011,868 $4,088,093 $4,165,767 $4,244,917 Purchased Services Instruction Support Services Employee Salaries & Benefits $3,096,525 $3,316,157 $3,158,380 $3,170,864 $3,281,844 $3,344,200 $3,407,739 $3,472,486 Purchased Services $363,457 $403,036 $407,067 $412,847 $418,586 $424,865 General Support Services Employee Salaries & Benefits $1,184,727 $1,212,610 $1,530,386 $1,453,303 $1,504,168 $1,532,747 $1,561,870 $1,591,545 Purchased Services $500 $500 $500 $500 $500 School Administration Employee Salaries & Benefits $5,712,453 $6,136,389 $6,457,873 $6,466,981 $6,693,326 $6,820,499 $6,950,088 $7,082,140 Central Services Employee Salaries & Benefits $407,654 $308,970 $311,290 $367,101 $379,950 $387,169 $394,525 $402,021 Purchased Services $12,034 $35,428 $35,782 $36,290 $36,795 $37,347 Community Services Employee Salaries & Benefits $41,302 $177,710 $187,181 $194,275 $201,075 $204,895 $208,788 $212,755 Purchased Services $1,360 $1,224 $1,300 $1,300 $1,300 $1,300 TOTAL EXPENDITURES $105,979,407 $112,763,186 $115,880,609 $118,958,123 $124,229,989 $126,575,121 $128,963,632 $131,400,880 FUND BALANCE Beginning Fund Balance $0 $0 $0 $0 $0 $0 $0 $0 Excess Revenue Over Expense -$30,906,275 -$34,805,589 -$34,671,586 -$30,736,211 -$33,650,230 -$33,250,357 -$31,827,814 -$31,740,972 Transfers In/(Out) $30,906,275 $34,805,589 $34,671,586 $30,736,211 $33,650,230 $33,250,357 $31,827,814 $31,740,972 ENDING FUND BALANCE $0 $0 $0 $0 $0 $0 $0 $0 28

35 CAPITAL PROJECTS FUND Capital expenditure budgeted in the Capital Projects fund include school and program based expenditures, various equipment lease payments, technology, general equipment, school buses and other vehicles, and major facility repairs. Local REVENUE Actual Actual Actual Budget Proposed Projected Projected Projected Property Tax $825,997 $829,505 $865,497 $897,275 $955,070 $973,491 $1,002,696 $1,012,724 Other Tax $2,016,131 $2,515,629 $2,487,367 $2,512,106 $3,539,445 $3,871,475 $3,916,768 $3,796,110 Interest $14,399 $19,548 $41,362 $34,345 $35,200 $37,205 $39,000 $41,000 Other Miscellaneous $1,026,903 $557,391 $180,147 $418,440 $300,000 $55,000 $53,205 $51,205 County State Assessed Utility $42,802 $45,572 $30,229 $30,782 $54,610 $56,787 $59,050 $61,404 State Other $594 Federal Medicaid/Title/Grants $153,468 $468,000 Other $300,000 $400,000 TOTAL REVENUES $4,226,233 $4,121,113 $3,604,601 $4,293,542 $5,352,325 $4,993,958 $5,070,719 $4,962,443 EXPENDITURES Instructional Services Equipment $482,060 $414,622 $541,534 $615,995 $693,436 $693,575 $693,714 $693,853 Student Support Services Equipment $1,495 Instruction Support Services Equipment $18,740 $54,323 $22,941 $15,090 $15,093 $15,096 $15,099 $15,102 General Support Services Equipment $998,485 $7,183 $15,296 $25,460 $25,465 $25,470 $25,475 $25,480 Central Services Equipment $341,828 $29,218 $86,775 $90,831 $90,849 $90,868 $90,886 $90,904 Operation and Maintenance Equipment $1,732,247 $1,769,322 $200,097 $181,194 $181,231 $181,267 $181,303 $181,339 Transportation Services Equipment $1,731,341 $1,805,330 $2,492 $1,695,977 $10,000 $10,250 $10,506 $10,769 Community Services Equipment $61,781 $69,244 $5,040 $3,925 $5,996 $5,997 $5,999 $6,000 Site and Facility Improvements Construction Contracts $1,226,003 $653,638 $467,867 $314,006 $1,516,520 $5,037,703 $5,405,884 $5,486,972 Equipment $24,101 $43,042 $65,243 $103,400 $100,000 $100,000 $100,000 Lease Payments Principal $2,906,347 $3,101,448 $4,839,295 $4,877,335 $4,784,984 $3,801,625 $3,267,949 $3,195,108 Interest $735,258 $678,468 $586,896 $494,606 $403,986 $313,982 $236,997 $169,845 TOTAL EXPENDITURES $10,258,191 $8,625,838 $6,768,233 $8,381,158 $7,830,960 $10,275,832 $10,033,812 $9,975,372 FUND BALANCE CAPITAL PROJECTS FUND Beginning Fund Balance $16,372,600 $14,194,526 $13,685,342 $13,687,988 $13,085,059 $13,248,413 $10,740,628 $8,593,234 Excess Revenue Over Expense -$6,031,958 -$4,504,725 -$3,163,631 -$4,087,615 -$2,478,635 -$5,281,874 -$4,963,093 -$5,012,929 Transfers In/(Out) $3,853,885 $3,995,541 $3,166,277 $3,484,686 $2,641,989 $2,774,088 $2,815,700 $2,857,935 ENDING FUND BALANCE $14,194,526 $13,685,342 $13,687,988 $13,085,059 $13,248,413 $10,740,628 $8,593,234 $6,438,240 29

36 SITE AND FACILITY IMPROVEMENT DETAILS LOCATION PROJECT TYPE PROJECT DESCRIPTION TOTAL PROJECT COST BASS CAP Replace kitchen and bathroom tile flooring $3,000 BCMS EQUIP Upgrade sound system in Commons-Stage/Fieldhouse $44,800 CCE CAP Even out concrete where old playground equipment removed and add 4 large picnic tables - Orig Request $24,089 $15,000 GWE CAP Replace fence around front of building and playground $7,500 HGE CAP Paint Rms 121, 201, 224, 225, 230, 227, 226, 231, 229, Stairwell 200, Stairwell 06, Exterior cafe doors & Kids Country door $15,155 HHE CAP New epoxy floor for bathroom - Rm 151 $2,751 HHE CAP New epoxy floor for bathroom - Rm 152 $2,751 HPE CAP Remodel and update front office space $22,624 LFE CAP Replace carpet in 6th grade pod $19,770 LSE CAP Replace carpet in Rms 3, 6, 19, 21 $16,506 LSHS CAP Strip, sand B gym floor, add new graphic, recoat $56,000 LSNHS EQUIP Exterior Cyclone vacuum system installed in Engineering & Industrial Technology Lab $33,600 LSWHS CAP Upgrade PE workout facility - $90k orig request $35,000 LSWHS EQUIP 6 new cameras to be placed in specified locations to increase student, staff and patron safety $10,000 MAE CAP Paint burlap wall and hang 8 ft white board in Rm 14 $2,125 MAE CAP Replace 8 ft white board in Rm 49 $625 MLE CAP Bathroom floors and corridor that connects the restrooms needs new epoxy - Rms 130, 129, 205, 163, 165, 134D $14,408 MP CAP Install chain link fencing with black vinyl around playground $9,000 PLE CAP Replace carpet in Rms 110, 107, 106, 108, 112 $25,272 PLMS EQUIP New digital clock system $15,000 PVE CAP Replace carpet and tile in Rms 54, 60-66, 70-73, $35,000 RHE CAP Replace carpet in main office & library office $21,294 SLMS CAP Add storage container similar to what is being used at TRANS and high schools. Small concrete sidwalk would be needed $5,000 SPE CAP Replace carpet in 4th grade pod, 6th grade pod - Orig Request - $38,778 One pod approved $19,389 SVE CAP Replace carpet in Rms B-143, B-147, B-146, B-144, B-122, B-126, B-125, B-121, A-128 and install 6' x 9' water hog mat for hallway by $2,000 playground - Orig Request $55,020 Only waterhog approved SVE CAP Paint inside wall and oustide wall with railing for Rms C-132, A- 122, A-123 $2,009 SVE CAP Repair concrete outside of the gym and medically fragile room $1,246 TRE CAP Replace bathroom partitions that have become rusted and could be dangerous $8,800 UWE CAP Replace carpet in Rms 163, 164, 165, 166, Main Office Hall, Office/Conference Room $29,208 WLE CAP Repair/Replace kitchen floor and kitchen restroom floor $17,766 WVE CAP Replace 205 ft of 5 ft tall wood fencing section with chain link fence $5,000 DISTRICT CAP Contingency (Capital Projects Team) $2,401 DISTRICT CAP Roofing/Paving Contracts $500,000 DISTRICT CAP Special Projects (Projects Determined as Needs Arise During Year) $619,920 30

37 BOND FUND The Bond Fund is a sub-fund within the Capital Projects Fund and is maintained as a separate fund with its own revenue sources and expenses. In April 2015 voters approved a $40 million bond issue to address numerous school-community identified needs. The budget includes expenses for the remaining bond resources. During the school year and continuing into , the District will develop a Comprehensive Facility Master Plan (CFMP) that will include planning for future facilities. At this time, no bond issues are planned impacting the budgets through fiscal year Local Actual Actual Actual Budget Proposed Interest $32,524 $54,243 $6,000 Bond Premium $4,534,394 Sale of Bonds $40,000,000 Projected Projected Projected TOTAL REVENUES $0 $0 $44,566,918 $54,243 $6,000 $0 $0 $0 EXPENDITURES General Obligation Bond BOND FUND Construction $209,291 $11,609,226 $20,442,115 $5,222,852 $288,291 Equipment $10,540 $2,377,995 $1,069,679 Land $100,000 $3,091,375 $60,000 Purchased Services $407,570 $26,518 TOTAL EXPENDITURES $0 $319,831 $17,486,166 $21,598,312 $5,222,852 $288,291 $0 $0 FUND BALANCE Beginning Fund Balance $288,291 $288,291 -$31,540 $27,049,212 $5,505,143 $288,291 $0 $0 Excess Revenue/Expense $0 -$319,831 $27,080,752 -$21,544,069 -$5,216,852 -$288,291 $0 $0 ENDING FUND BALANCE $288,291 -$31,540 $27,049,212 $5,505,143 $288,291 $0 $0 $0 Missouri Innovation Campus Mason Gym 31

38 DEBT SERVICE FUND The Debt Service Fund budget includes the necessary expenditures for retirement of the school year s bonded debt, including an additional $41.3 million for bond issues previously refunded. The refunded bond issues will be paid from escrowed cash which is part of the Debt Service fund balance. Revenue in the debt service fund is provided by a $1.07 levy, investment earnings and state assessed utility revenue allocated to this fund. At the end of the 2018 calendar year, the District will have $142,290,000 in outstanding general obligation bonds. 32

39 The table below provides the amount of outstanding general obligation bonds of the existing bond issues. At the end of the 2018 calendar year, the District will have $142,290,000 in outstanding general obligation bonds. The latest bond issue was voted in 2015 and issued during 2015 and The changes in debt will be impacted solely by the pay-off of current issues each year pending any future refunding opportunities. Future bond issues are not planned at this time through the school year. Calendar Year Series 2005/2015 Series 2006/2014 General Obligation Bond Principal Outstanding by Issue Series 2008/2015 Series 2010A Series 2010B Series 2012A Series 2012B Series 2015B/ 2016 Total Principal Outstanding 2018 $3,760,000 $2,750,000 $4,325, $585,000 $2,130,000 - $13,550, $6,000,000 $675,000 $5,350, $600,000 $2,190,000 - $14,815, $6,100,000 $1,375,000 $3,500, $600,000 $2,240,000 - $13,815, $1,975,000 $670,000 $8,035, $625,000 $2,290,000 - $13,595, $2,760,000 $5,670, $2,370,000 - $10,800, $2,535,000 $5,925,000 $1,228, $9,688, $3,235,000 $2,725,000 $1,270, $7,230, $3,370,000 $2,925,000 $1,315, $7,610, $3,500,000 $3,250,000 $1,360, $8,110, $2,300,000 - $6,447, $8,747, $3,500,000 $1,405, $4,905, $1,460, $1,460, $1,515, $1,515, $ $9,250,000 $9,250, $9,750,000 $9,750, $10,250,000 $10,250, $10,750,000 $10,750,000 Totals $17,835,000 $20,870,000 $47,505,000 $9,553,000 $6,447,000 $2,410,000 $11,220,000 $40,000,000 $155,840,000 Estimates of the legal bonding debt limit (15% of assessed value) and the amount of bonding capacity (legal limit less outstanding general obligation debt) are shown in the graph below. 33

40 FUND BALANCE The Board of Education has set a minimum target of 15 percent for the fiscal year ending fund balance. This percent was determined based on the analysis of cash flow of actual revenue and expenditure patterns over a period of several years. The ending fund balance is particularly important to the Lee s Summit R-7 District because a significant percent of the district s revenue comes from local property tax. Taxpayers are billed in mid-november by the counties for the calendar year taxes, with the tax payment due on or before December 31. The fund balance is used to provide cash flow for the District to meet expenditure obligations in the months of July through December, before the bulk of the tax revenue is collected. The District maintains a zero fund balance in the Teacher s Fund. Teacher s fund expenses are funded through state aid revenues, Prop C sales tax, miscellaneous local revenues and by a budgeted transfer from the Incidental Fund. The following graph provides both the operating fund balance with the 15 percent minimum balance represented. While the fund balance projections show a slight decrease, the fund balance is well in excess of the minimum required fund balance. BUDGET FORECAST The District is continually planning, analyzing and revising budget estimates. Multiple year revenue, expense and fund balances are projected to position the District to evaluate the short and long term impact of decisions on District resources. For the next three fiscal years, (FY19 through FY21), the District is conservatively estimating revenue increases at an average of 2.52% per year and expenditure increases at an average of 2.17% per year. Both revenues and expenditures are estimates using projected variables including assessed value, tax rate, enrollment, all categories of revenue and expense, including anticipated salary schedule step movement, additional staff and benefit cost increases. 34

41 PROPERTY TAXES Historically, property tax revenue has represented a significant source of operating revenue for the school district at approximately 44 percent of total operating revenues. Personal, Residential, Commercial, and Agricultural property are all subject to property tax assessment. The tax burden of an individual taxpayer is determined by multiplying the levy rate by each $100 of assessed valuation. As illustrated in the table below, the property tax on a $100,000 home is currently only $45.24 (3.9%) lower than in fiscal year Market Value of Property Assessed Value* Tax Levy Rate Annual Property Tax Due Cumulative Change from FY07 Percent Change Year * $100,000 $19,000 $ $1, ($12.79) -1.14% * $100,000 $19,000 $ $1, ($15.52) -1.39% * $100,000 $19,000 $ $1, ($2.98) -0.27% * $100,000 $19,000 $ $1, ($5.72) -0.51% $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % A major portion of the District s assessed value results from residential real estate. This graph shows 68 percent of the total assessed value or $1.3 billion is based on residential real estate value. 35

42 The table presented below provides the tax rate by fund. Incidental (General) Special Revenue (Teacher's) Debt Service Capital Projects Total * $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ *Estimated TAX RATE BY FUND The Missouri Department of Elementary and Secondary Education provides comparison data to identify the relative wealth of the district based on assessed value per ADA. The chart below provides this comparison data for Lee s Summit R-VII and five other local comparable districts. For information purposes, the statewide assessed value per ADA is also included. The school year is the most recent information available published by DESE. 36

43 BOARD MEMBERS AND DISTRICT ADMINISTRATION BOARD OF EDUCATION Bob White... President Julie Doane...Vice-President Dennis Smith... Member Phyllis Balagna... Member Adam Rutherford... Member Kim Fritchie... Member Jackie Clark... Member SUPERINTENDENT S LEADERSHIP TEAM Dennis Carpenter, Ed. D...Superintendent Katie Collier, Ed. D..Associate Superintendent, Instruction & Leadership Judy Hedrick, Ed. D... Associate Superintendent, Business Services & Operations Jeff Miller, Ed. D Associate Superintendent, Human Resources Jennifer Kephart, Ed. D...Assistant Superintendent, Elementary Instruction Emily Miller, Ed. D......Assistant Superintendent, Special Services David Sharp, Ed. D... Assistant Superintendent, Secondary Instruction Amy Gates, Ed. D....Executive Director, Technology Janice Phelan..Executive Director, Communications 37

44 38

45 ORGANIZATIONAL SECTION The Organizational Section of the school budget document describes the District s organizational and management structure as well as the policies and procedures governing its administrative and financial operations. M. Eidson, Lee's Summit North High School Christina B., Campbell Middle School N. Wood, Lee's Summit High School K. Cadwell, Lee's Summit High School 39

46 MISSION STATEMENT Lee s Summit R-7 School District prepares each student for success in life. OUR VISION: Lee s Summit R-7 is an exemplary school district, graduating students who are college and career ready with the competitive advantage necessary to be successful. Lee s Summit R-7 reflects a culture of respect and acceptance. Collaboration is an expectation that fosters mutual understanding and a focus on student achievement and staff development. Lee s Summit R-7 encourages innovation and creativity, recognizing student learning as our fundamental purpose. Aunnuka J, Lee's Summit High School DISTRICT COMMITMENTS: Engaging students in research-based programs in a technology-rich environment. Embracing open, honest two-way communication. Promoting continuous improvement through data-driven decision-making. Sustaining positive relationships among students, staff, families and community members. Ensuring a rigorous and relevant learning experience that leads to success for each student. Partnering with students in identifying and achieving their learning goals. Continuing a safe and caring environment. 40

47 DISTRICT ENTITY The legal name of the District Reorganized School District Number 7 of Jackson County, Missouri--is a direct result of the manner in which the district was formed in The 117-square-mile Lee s Summit R-7 School District is recognized as one of the top educational systems in the state and nation. Located in the southeast portion of the Kansas City metropolitan area, the district serves the communities of Lee s Summit, Greenwood, Lake Lotawana and Lake Winnebago as well as unincorporated areas of eastern Jackson County and also includes a small portion of Blue Springs and Kansas City municipalities. On the southwestern side of the District, the boundaries extend slightly into northern Cass County. The District is a fiscally independent political subdivision of the State of Missouri that may levy and collect taxes within the limitations of the Missouri state statutes. Section , RSMo, provides authority for the District to disburse funds only for the purposes for which they were levied, collected and received. SIZE AND SCOPE The Lee s Summit R-7 School District has gained an annual average of 178 new students since , with kindergarten through grade 12 enrollment for anticipated at 18,157 and projected though The District also provides services to approximately 350 pre-kindergarten students. Recognized nationally for its quality educational programs and a commitment to success for all students, the R-7 School District has good reason to attract its many new residents. Involved parents and a supportive community are key in the school district s ability to provide excellent educational opportunities in a caring learning environment. Lee s Summit R-7 citizens understand that quality schools are the foundation of a strong and economically sustainable community. 41

48 The district currently includes 18 elementary schools, three middle schools, three high schools, an alternative secondary school, a secondary technology academy, an early education center and a special-education day-treatment center, and numerous support facilities serving students in grades pre-kindergarten through grade 12. The R-7 School District has won Missouri s Distinction in Performance Award, the state s highest recognition for academic achievement. The district exceeded the criteria for this prestigious award by earning a perfect score on the Missouri performance indicators every year since the program began. Lee s Summit was featured in BusinessWeek magazine as Missouri s Best Place in America to Raise Kids. Only one town was selected from each state, with the most important factors in the analysis being considered: school performance, affordability and safety. Money magazine named Lee s Summit R-7 schools as seventh best in the nation in its annual Best Places to Live issue focusing on the nation s top 100 small cities. REPORTING Every district in the state of Missouri is required to file an Annual Secretary of the Board Report (ASBR) with the Missouri Department of Elementary and Secondary Education (DESE) by August 15 of each year. The ASBR must be subsequently updated to be consistent with the final audited financial reports. The financial operations of the district are established within the parameters of all federal, state and local reporting requirements. An annual audit is performed at the direction of the Board of Education with direct reporting of audit results to a community-based audit review team, also facilitated by Board of Education members. The audit review team performs an in-depth review of the audit process, audit report and accompanying letter to district management. As part of an ongoing emphasis on transparency, the audit review team meets at a public session prior to the audit report being considered for approval by the full Board of Education. Both the audit review team and Board of Education are provided responses to areas identified in the management letter in need of response or practice changes. In addition to the annual external audit, the Board of Education provides resources for internal control reviews of all school sites on a three-year rotation basis. These internal control reviews are performed by an external auditing firm and include all areas at the school sites where money is received, including the school office, cafeteria and library. Following the internal control on-site review, a comprehensive report is provided to the site. The report includes the internal control practices reviewed, the practices consistent with good internal control 42

49 procedures and the internal control practices needing improvement. During the past ten years, the external auditors have not identified any major misrepresentations or internal control concerns within the school district. Every school district in the state of Missouri is also required to file audited financial reports with DESE by December 31 annually. The auditor s management letter and board of education minutes approving the audit report are required to be submitted to DESE when available. The District is required to submit a data collection form and reporting package to the Federal Audit Clearinghouse at the U.S. Bureau of Census within the earlier of thirty days from receipt of the audit report or nine months after the end of the audit period. The reporting package consists of the complete audit and a summary schedule of prior audit findings and a corrective action plan for the current year audit. GOVERNANCE The District is governed by a seven-member board of education. Board members are elected at-large. Each director must be a voter of the District who has resided within the state for one year preceding election or appointment and who is at least 24 years of age. All directors hold their offices for three years and until their successors are duly elected and qualified, provided they maintain the qualifications for board of education members. The role of the Board of Education is to exercise general supervision over the District and to ensure the schools are maintained as provided by state statutes, rules and regulations of the Missouri State Board of Education and the Missouri Department of Elementary and Secondary Education (DESE), and the policies, rules, and regulations approved by previous boards of education. In addition, the Board is accountable to the electorate and is responsible to provide for the educational needs of students within the financial constraints of the District. Abby R, Lee s Summit North High School 43

50 ABOUT THE SCHOOL BOARD BOARD OF EDUCATION School board members must be a resident of the school district and have resided within the state for one year at the time of election or appointment and be at least 24 years of age. The term of a member is three years. The Board has full legislative authority and control of the District as provided for in state law. The Lee s Summit R-7 Board of Education meets once per month at 7:00 p.m. at the Stansberry Leadership Center, 301 NE Tudor Road, Lee s Summit, Missouri. Agendas are available prior to Board meetings and are posted on the District web site: The agenda for each regular meeting of the Board of Education will include a designated time for Comments from the Public. The purpose of this item is to permit members of the public to speak, within time limitations, on matters included in the current agenda. The Board of Education may also elect to offer a time for Comments from the Public during Board workshops. Citizens desiring to address the Board during Comments from the Public will advise the superintendent or the President of the Board prior to the starting time of the meeting. The request will be made in writing on a form provided by the district and will include the name, address, telephone number of the speaker, name of organization represented (if any), and a brief description of the topic to be addressed. A time allocation, not to exceed 20 minutes at a meeting, will be provided for Comments from the Public. The Board President will advise the audience at the beginning of Comments from the Public of the guidelines to be followed during this time. Speakers will be advised that their speaking time will be limited as directed by the Board President. Speakers will be advised that comments must be limited to items which directly relate to the Board agenda. The Board President will have the authority to discontinue any presentation which violates any of the public participation guidelines. Correspondence to school board members may be directed to Board Secretary Linda Ismert, linda.ismert@lsr7.net, 301 NE Tudor Road, Lee s Summit, MO

51 BOARD OF EDUCATION MEMBERS Bob White, President First Elected: 2013 Term Expires: 2019 Julie Doane, Vice President First Elected: 2015 Term Expires: 2018 Phyllis Balagna, Member First Elected: 2012 Term Expires: 2019 Jackie Clark, Member First Elected: 2017 Term Expires: 2020 Kim Fritchie, Member First Elected: 2017 Term Expires: 2020 Adam Rutherford, Member First Elected: 2015 Term Expires: 2018 Dennis Smith, Member First Elected: 2017 Term Expires: 2020 Linda Ismert, Executive Assistant BOE/ Superintendent 45

52 DISTRICT ADMINISTRATORS Dr. Dennis L. Carpenter Superintendent Dr. Katie Collier Associate Superintendent Instruction & Leadership Dr. Judy Hedrick Associate Superintendent Business Services & Operations Dr. Jeff Miller Associate Superintendent Human Resources Dr. Jennifer Kephart Assistant Superintendent Elementary Instruction Dr. Emily Miller Assistant Superintendent Special Services Dr. David Sharp Assistant Superintendent Secondary Instruction Dr. Amy Gates Executive Director Technology Janice Phelan Executive Director Community Relations 46

53 ORGANIZATIONAL CHART *Superintendent s Leadership Team 47

54 Link to map and other street/school finding tools is available at: 48

55 SCHOOLS Locations/Start and Stop Times PreK Elementary Great Beginnings Early Education (Pre-K) Hours: 9:00 am-12:00 pm, 1:00 pm 4:00 pm Address: 905 NE Blue Stem Dr, Lee s Summit, MO Office: Kerry Boehm, Director Cedar Creek Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 2600 SW Third Street, Lee s Summit, MO Office: Jen Opie, Principal Greenwood Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 805 W Main, Greenwood, MO Office: Carrie Jackson, Principal Hawthorn Hill Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 2801 SW Pryor Rd, Lee s Summit, MO Office: Carol Germano, Principal Hazel Grove Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: 2001 NW Blue Parkway, Lee s Summit, MO Office: Kristen Merrell, Principal Highland Park Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 400 SE Millstone Avenue, Lee s Summit, MO Office: Jodi Mallette, Principal Lee s Summit Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 110 SE Green Street, Lee s Summit, MO Office: Tracy Sample, Principal Longview Farm Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: 1001 SW Longview Park Dr, Lee s Summit, MO Office: Kim Hassler, Principal Mason Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: Colbern Rd, Lee s Summit, MO Office: Beth Ratty, Principal Meadow Lane Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 1421 NE Independence, Lee s Summit, MO Office: Dr. Sheryl Cochran Principal Pleasant Lea Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: 700 SW Persels, Lee s Summit, MO Office: Aaron Barnett, Principal Prairie View Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 501 SE Todd George Rd., Lee s Summit, MO Office: Amy Fennewald, Principal Richardson Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 800 NE Blackwell Rd., Lee s Summit, MO Office: Lisa Detig, Principal Summit Pointe Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: E. 147 th Street, Kansas City, MO Office: Dr. Heather Kenney, Principal Sunset Valley Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: 1850 SE Ranson Road, Lee s Summit, MO Office: Greg Johnson, Principal Trailridge Elementary (Grades K-6) Hours: 8:20 am-3:20 pm Address: 3651 SW Windemere Dr., Lee s Summit, MO Office: Jeff Scalfaro, Principal 49

56 Elementary (continued) SCHOOLS Locations/Start and Stop Times Underwood Elementary (Grades K-6) Woodland Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Hours: 9:00 am-4:00 pm Address: 1125 NE Colbern Rd., Lee s Address: S Smart Rd., Lee s Summit, MO Office: Summit, MO Office: Dr. Anna McGraw, Principal Dr. Stacy James, Principal Westview Elementary (Grades K-6) Hours: 9:00 am-4:00 pm Address: 200 North Ward Rd., Lee s Summit, MO Office: David Boulden, Principal Middle Schools Campbell Middle School (Grades 7-8) Hours: 7:40 am-2:35 pm Address: 1201 NE Colbern Rd., Lee s Summit, MO Office: Dr. Sherri Lewis, Principal Pleasant Lea Middle School (Grades 7-8) Hours: 7:30 am-2:25 pm Address: 630 SW Persels, Lee s Summit, MO Office: Dr. Janette Miller, Principal Summit Lakes Middle School (Grades 7-8) Hours: 7:30 am-2:25 pm Address: 3500 SW Windemere Dr., Lee s Summit, MO Office: David Mitchell, Principal High Schools Lee s Summit High School (Grades 9-12) Hours: 7:30 am-2:23 pm Address: 400 SE Blue Parkway, Lee s Summit, MO Office: Dr. John Faulkenberry, Principal Lee s Summit North High School (Grades 9-12) Hours: 7:30 am-2:23 pm Address: 901 NE Douglas, Lee s Summit, MO Office: Dr. Jeff Meisenheimer, Principal Lee s Summit West High School (Grades 9-12) Hours: 7:30 am-2:23 pm Address: 2600 SW Ward Rd., Lee s Summit, MO Office: Dr. Chad Hertzog, Principal Summit Ridge Academy (Grades 7-12) Hours: 7:30 am-1:30 pm Address: 2620 SW Ward Rd, Lee s Summit, MO Office: Andy Campbell, Principal Summit Technology Academy (Grades 11-12) Hours: 7:55 10:00 am; 11:50 am-1:55 pm Address: 777 NW Blue Parkway, Lee s Summit, MO Office: Elaine Metcalf, Director Eve M, Lee's Summit North High School 50

57 DESTINATION COMPREHENSIVE SCHOOL IMPROVEMENT PLAN The Lee s Summit R-7 Comprehensive School Improvement Plan or CSIP provides a guide for our school district with its major emphasis on student achievement. Developed by a community team and approved by the Board of Education, the CSIP focuses on five areas governance; student performance; highly qualified staff; facilities, support and instructional resources; and parent and community involvement. The five-year plan includes a number of components to guide all efforts, includes goals and tasks to improve, enhance accountability and is also part of the district s evaluation process through the State of Missouri. The school year is the second year of the District s most recently developed CSIP Destination The five areas of the CSIP, including the goals for each focus area are listed below including the budget allocation by goal. Governance Goal One: Vision and Accountability: In collaboration with administration, the Board will establish and monitor annual goals for student achievement and instruction, as well as efficient and effective operations and fiscal planning. Goal Two: Policy and Community Leadership: Through collaboration among the board and administration; establish and maintain policies and procedures that create a foundation for maximizing student achievement and managing district resources effectively. Goal Three: Board and Superintendent Team: The Board and Superintendent will respectively govern and administer the school district in a collaborative manner that leads to a positive impact on student achievement and efficient and effective operations Budget Allocation: $24,295 Student Performance Goal One: Each student will be provided a personalized learning experience that creates student ownership of learning thereby demonstrating growth in student achievement Budget Allocation: $1,045,970 Goal Two: The District will increase student connectedness and engagement to the school experience Budget Allocation: $2,280,000 Goal Three: Students will demonstrate academic achievement as measured by identified targets at the district, elementary and secondary levels Budget Allocation: $49,500 51

58 Highly Qualified Staff Goal One: Attract and retain quality staff while increasing gender and ethnic diversity ten percent each year Budget Allocation: $7,867,142 Goal Two: Provide high quality professional learning that prepares each staff member to successfully support an inclusive learning environment Budget Allocation: $963,233 Facilities, Support and Instructional Resources Goal One: Develop and evaluate the annual budget for alignment of district resources with the Comprehensive School Improvement Plan, Comprehensive Facilities Master Plan and other budget planning processes to ensure compliance with the Board of Education targeted financial fund balance reserves Budget Allocation: $90,000 Parent and Community Involvement Goal One: Increase the number of community members volunteering in individual school and district locations by enhancing relationships and more fully engaging citizens Budget Allocation: $66,807 Goal Two: Increase contributions of time, talent and treasure to Lee's Summit R-7 pro- grams and organizations that supplement and support the mission of the school district. Goal Three: Develop creative global communication vehicles to promote, facilitate and enhance family, community and business engagements Budget Allocation: $12,000 Additional CSIP information is available at: DISTRICT PRIORITIES Annually the Board of Education collaborates with the Superintendent s Leadership Team to define annual priorities. Building upon the district s tradition of excellence and continuous improvement in student learning, the Board of Education commits to the following priorities for the school year. 1. Increase the learning and achievement of every child through the development of a comprehensive academic framework informed by the needs of our students, the district s strategic plan and the 2016 Academic Systems Review. 2. Ensure equitable access to 21st century learning environments by engaging stakeholders in a process to update the district s Comprehensive Facility Master Plan to meet the instructional and programming needs of all pre-k-12 students. 3. Strengthen public trust in the district s governance leadership team by systemically enhancing communication, involvement and collaboration to ensure constructive engagement within the school district community. 52

59 These goals align with the focus of the district s strategic plan. While each Board priority is championed by a member of the Superintendent's Leadership Team with the guidance of the Superintendent, a variety of individuals contribute to the development of recommendations and all work associated with these priorities. The Superintendent s Leadership Team will provide regular updates to the Board of Education to allow the Board to monitor the work associated with the priorities while also affording the opportunity for Board member inquiry and contribution. The timeline is as follows: Monthly informal updates via Board Update Quarterly formal presentations to the Board at Monthly Meeting September 22, 2017 October 26, 2017 November 10, 2017 January 18, 2018 December 8, 2017 April 12, 2018 March 9, 2018 June 14, 2018 May 11, 2018 Ben S., Lee's Summit High School 53

60 MEASUREMENT BASIS OF ACCOUNTING The District has elected to use a modified cash basis of accounting. The cash basis of accounting is a basis of accounting other than generally accepted accounting principles. The District uses the modified cash basis of accounting for revenues and expenditures for both accounting and budgeting. This basis of accounting is used for all governmental type funds of the District. Basis of accounting is a reference to when financial events are recorded, such as the timing for recognizing revenues, expenses and their related assets and liabilities. Under the District s cash basis of accounting, revenues and expenses and related assets and liabilities for all activities are recorded when they result from cash transactions. CLASSIFICATION OF REVENUE AND EXPENDITURES The Missouri Department of Elementary and Secondary Education has adopted a system of accounting for the classification of revenue and expenditures based on generally accepted accounting principles. Revenues and expenditures are classified by a combination of three dimensions: fund, function, and object. The revenue function code identifies the source of the revenue, such as local, county, state, or federal. The revenue object code identifies the specific source of revenue, such as taxes, student activities, or grants. The expenditure function code describes the action, purpose, or program for which activities are performed. The expenditure object code identifies the service or commodity obtained such as salaries, supplies, or travel. Miranda, Lee's Summit North High School The annual report submitted to DESE must be completed with financial information consistent with the revenue and expenditure codes developed by the Department. Accordingly, revenue and expenditures are presented with these formats in the following pages. 54

61 CLASSIFICATION OF REVENUE: BY OBJECT 5100 County Revenue Object Code Object Name Description 5111 Current Tax Taxes on real and personal property within the district for the current year Delinquent Tax Revenue from prior year real and personal property taxes Proposition C Amounts received from the state from a one cent state sales tax, collected and distributed in accordance with Section , RSMo Financial Institution Tax Taxes levied on the intangible assets of financial institutions M&M Surtax Surcharge on commercial real estate to replace revenue lost due to the elimination of merchants & manufacturing businesses inventory tax In Lieu of Tax Amounts received for property taken off the tax rolls Transportation Fees from Patrons Amounts received from parents for transportation of students in the District Earnings on Interest earned on deposits and investments. Investments 5151 Sales to Pupils 5161 Sales to Adults 5165 Food Service Non- Program Amounts received from students for the sale of meals served under the National School Lunch and Breakfast Programs. Amounts received from adults for the sale of meals served under the National School Lunch and Breakfast Programs. Amounts received from special Milk Program milk sales, the sale of extra milk, ala carte, snack bar, vending, banquets, after school snack program Student Activities All revenue from student activities Community Services Revenues from activities performed by the District as community services, not directly related to providing an education for pupils Other Local Revenue All other revenue from local sources not covered by other defined revenue codes County Revenue Object Code Object Name Description 5211 Fines, Escheats, Etc State Assessed Utilities 5237 Other County Revenue Revenue from Jackson and Cass Counties for fines, foreclosures and unclaimed taxes. Levy revenue on the assessed valuation of railroad and utility properties as assessed by the state. Revenue received to reimburse the District for expenses included in the COMBAT grant. 55

62 5300 State Revenue Object Code Object Name Description 5311 Basic Formula Amounts received from the State Foundation Formula (the calculated apportionment amount plus or minus prior year corrections). Excludes Classroom Trust Fund Transportation Amounts received from the state for transportation of school children Early Childhood Special Education Early Childhood Special Education Amounts received from the state to provide for early childhood special education programs Classroom Trust Fund Amounts received from the Gaming portion of funding for the State Foundation Formula Education Screening Revenue to provide for Early Childhood Screening and Parents as Teacher programs. Program/PAT 5332 Career Education Amounts received from the state that represent reimbursement for career and technical education Food Service Revenue from state for school lunch programs Residential Placement/Excess Cost 5381 High Need Fund Special Education 5397 Other State Revenue Amounts received for children in residential placements through the Missouri Department of Mental Health or Division of Family Services. Reimbursement for expenditures made on behalf of students with disabilities when the current expenditure per eligible pupil exceeds three times the District s average. All other revenue from the state not covered by the above revenue codes Federal Revenue Object Code Object Name Description 5412 Medicaid Reimbursement for Medicaid services ROTC Reimbursement for reserve officer training programs Individuals with Disabilities Education Act Amounts received through the Individuals with Disabilities Education Act (IDEA) grant for providing special education and related services to students with 5442 Early Childhood Special Education ECSE) 5445 School Lunch Program 5446 School Breakfast Program disabilities. Amounts received for ECSE programs. Amounts received directly through DESE for the National Food Lunch Program. Amounts received directly through DESE for the National Food Breakfast Program Title I Amounts received through the Title I programs Title III English Amounts received through the state for teaching Language English to limited English proficient children and for Acquisition immigrant children. Object Code Object Name Description 5465 Title II, Part A & B, ESEA Teacher and Principal Training and Recruitment students in mathematics and science Other Federal Revenue Funds used to improve teacher and principal quality, increase the number of highly qualified teachers and principals and improve the academic achievement of All other federal revenue not covered by the above revenue codes. 56

63 Other Revenue Object Code Object Name Description 5611 Sale of Bonds Amounts received as principal from the sale of bonds Sale of School Amounts received from the sale of school buses. Buses 5651 Sale of Property Amounts received from the sale of real and personal property Refunding Bonds Proceeds from a refunding of general obligation bonds. CLASSIFICATION OF EXPENDITURES: BY FUND Governmental Funds Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they are to be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the District s principal governmental funds: Incidental (General) Fund: Accounts for general activities or other activities except those required to be accounted for in the Special Revenue, Debt Service or Capital Projects. Teachers (Special Revenue) Fund: Accounts for expenditures for certificated employees involved in administration and instruction. It includes revenues restricted by the State for the payment of certificated salaries. Debt Service Fund: Accounts for the accumulation of resources for, and the payment of principal, interest, and fiscal charges on general long-term debt. Capital Projects Fund: Accounts for the proceeds of long-term debt and other revenues designated for acquisition or construction of major capital assets and other capital outlay purchases required by law or the Missouri Department of Elementary and Secondary Education to be reported in the Capital Projects Fund. 57

64 CLASSIFICATION OF EXPENDITURES: BY FUNCTION The expenditure functions of the districts in Missouri are categorized into five general areas: Instruction, Support Services, Community Services, Facilities Acquisition and Construction, and Debt. Each of these categories is further classified into sub-functions based on schools, programs, services, and areas of responsibility Instruction Instruction includes the activities dealing directly with the teaching of pupils or the interaction between teachers and pupils. Teaching may be provided for pupils in a school classroom, in another location such as a home or hospital, and in other learning situations such as those involving co-curricular activities. Also included are the activities of aides or assistants who assist in the instructional process Support Services Support services are those services which provide administrative, technical (such as guidance and health), and logistical support to facilitate and enhance instruction, and to a lesser degree, community services. Support services exist as adjuncts for the fulfillment of instructional objectives Community Services Community services consist of those activities concerned with providing services to the community as a whole or for some segment of the community Facilities Acquisition and Construction Services Those activities concerned with the acquisition of land and buildings, remodeling buildings, the construction of buildings and building additions, initial installation and extensions of service systems, and other built-in equipment and improvements to sites Long and Short Term Debt Activities servicing the debt of the District. 58

65 CLASSIFICATION OF EXPENDITURES: BY OBJECT The expenditure object code identifies the type of service or commodity obtained such as salaries, supplies, or travel. Listed below are the six major expenditure object categories used for all expenses within the school district Salaries Amounts paid to employees of the district, including all regular, full time, part time, or hourly staff. Salary includes gross wages for services rendered while an employee of the district Employee Benefits Amounts paid by the district for benefits on behalf of employees. These amounts are not considered salary but are included in the overall compensation provided to employees Purchased Services-Amounts paid for services rendered by contractors, vendors or others not considered employees of the district Supplies Amounts paid for material items of an expendable nature that are consumed, worn out, deteriorated by use, or items that lose their identity through fabrication or incorporation into different or more complex units or substances Capital Outlay Expenditures for the acquisition of capital assets or additions to capital assets. They are expenditures for land or existing buildings, improvements of grounds, construction of buildings, additions to buildings, remodeling of buildings, and equipment. This category includes expenses for the principal and interest payment for lease purchases. The threshold for expenses to be categorized as capital projects is an item cost of $1,000 or more Long and Short Term Debt Expenditures for the retirement of debt, the payment of interest on debt, and the payment of fees. Lauren S., Lee's Summit High School 59

66 THE BUDGET PROCESS The Lee s Summit R-7 Board of Education provides the leadership for the budget process structure which includes a successful mechanism for fair and equitable distribution of district resources. Through this mechanism, district-wide budget managers request staffing as well as operational, capital projects, technology and/or new program resources. This annual process has served the district well for several years and involves all schools and departments. These school and department leaders analyze needs in conjunction with their individual site teams and submit requests through a standardized process. The Superintendent s Leadership Team, which includes representatives from all functional areas within the district, and other teams such as Capital Projects and Technology, review requests and develop recommendations for Board of Education consideration and approval. These budget requests are incorporated into short- and longrange budget planning processes which are shared with both internal and external stakeholders. In addition, the Lee s Summit R-7 Board of Education dedicates time on a semi-annual basis to budget and finance work sessions where they learn more about the district s budgeting processes. Through this process, the Board of Education sets the district s budget timelines on an annual basis. During the annual budget approval, the Board reviews prior year budget estimates and allows for budget amendments to influence future budgets where necessary. The information is also shared on a regular basis with community, parents and business leaders through groups such as the R-7 Citizens Advisory Committee and Business Roundtable. This process has successfully provided the resources to maintain pupil-teacher ratios across the district from 22.6:1 in 2014 to 22.2:1 in 2017 at the K-6 grade levels. At the middle schools, the average class size for 2017 was 20.8 and at the high school level, the average class size was

67 BUDGET ALIGNMENT The Lee s Summit R-7 Comprehensive School Improvement Plan (CSIP) is developed through a district team comprised of Board of Education members, community representatives and staff members. This community group meets on a regular basis to develop action plans in five major focus areas, including governance; student performance; highly qualified staff; facilities, support and instructional resources; and parent and community involvement. The new CSIP plan will guide District operation through Members of an approximately 40- person Comprehensive School Improvement team developed the five focus areas into goals, strategies and action steps for each area. To ensure accountability, the action steps are placed on a timeline and reviewed annually by the CSIP Team, the Superintendent's Leadership Team and the Board of Education. Destiny C., Lee s Summit North High School The CSIP process requires each strategy and action step to include an implementation timeline which can span multiple fiscal years with an accompanying estimate of budget resources needed for each action step. The CSIP budgeting function further identifies currently budgeted resources and needed additional resources by year and by focus area. To keep the five-year plan up-to-date, the CSIP Team recommends annual revisions to the Board of Education during a summer work session. Board members review each annual action step and progress toward each CSIP goal prior to approval of CSIP changes. In addition, the Board of Education establishes priorities for CSIP action steps annually through the use of the school district s Superintendent/Board of Education Agreement and action items. Board members also receive a mid-year status report of activities and progress for each task included in the Superintendent/Board Agreement. BUDGET PLANNING In order to make the best use of district resources, the Lee s Summit R-7 Board of Education established a process for quality focus teams and process action teams. Through this process, the district is better able to monitor and evaluate programs, initiatives and activities. These district teams work in conjunction with and in addition to other established district teams including the Instructional Operations Team, Comprehensive School Improvement Team, Superintendent s Leadership Team and site teams to determine if programs, initiatives and activities are essential, effective and efficient. 61

68 This approach to program evaluation provides for a continual cycle of study, planning, implementation and evaluation. This cycle also allows for restructuring or discontinuing of programs, initiatives and/or activities as we seek to prepare our students for success with available resources. BUDGET CALENDAR 62

69 BUDGET ADOPTION One of the primary responsibilities of the Board of Education is to secure adequate resources to fund a quality program of education in the school district. Budget planning and preparation is a continual process. The annual school budget represents a written document presenting the Board's plan for allocation of available financial resources into an explicit expenditure plan to sustain and improve the educational function of the school district. It is a legal document describing the programs to be conducted during the fiscal year and is the basis for the establishment of tax rates for the district. The Board of Education receives reports on these consistent processes on at least a semi-annual basis. During work sessions, Board of Education members are provided with both qualitative and quantitative data which enables the Board to give direction for adjustments to programs and determine subsequent budget impacts. The district has implemented, with Board of Education input and approval, numerous cost containment strategies and best practices to address operating fund balances. Since 2004 when the operating fund balance was approximately percent, these strategies have contributed to positive operating fund balances projected at percent in the current school year. Using these processes and involving numerous stakeholders has allowed the district to positively impact students while continuing to serve as good stewards of our community s financial resources. The Board designates the superintendent to serve as the budget officer of the district. As budget officer, the superintendent directs the planning and preparation of the budget and will submit the budget to the Board of Education for approval. The superintendent will present the Board the final budget proposal before the new fiscal year begins, as provided by law. The Board may revise the items contained therein and will at that meeting adopt the portion of the budget dealing with the salary schedule and the needed tax rate for the district. The Board will conduct at least one public hearing regarding the proposed budget and taxation rate. The annual budget document shall present a completed financial plan for the ensuing fiscal year and shall include at least the following statutory requirements: Damien C, Lee's Summit High School A budget message describing the important features of the budget and major changes from the preceding year. 63

70 Estimated revenues to be received from all sources for the fiscal year, with a comparative statement of actual or estimated revenues for the two years next preceding, itemized by year, fund and source. Proposed expenditures for each function or program within the district, with a comparative statement of actual or estimated expenditures for the two years preceding, itemized by year, function and object. The amount required for the payment of interest, amortization and redemption charges on the debt of the school district. A general budget summary. In no event shall the total proposed expenditures from any fund exceed the estimated revenues to be received plus any encumbered balance or less any deficit estimated for the beginning of the fiscal year. Upon the recommendation of the superintendent, the Board will approve a system of internal accounting to ensure proper financial accounting of revenues and expenditures. The adopted budget of the Lee s Summit R-7 School District serves as the control to direct and limit expenditures in the district. Overall responsibility for assuring control rests with the superintendent. However, each budget manager is responsible for ensuring all expenditures are approved and are consistent with effective, efficient, essential budgeting practices. The total amounts that may be expended during the fiscal year are set forth in the budget. The total budgeted expenditure for each program is the maximum amount that may be expended for that classification of expenditures during the school year unless a budget transfer is recommended and approved by the Board of Education, which may occur during the fiscal year. The Board of Education may also consider final budget amendments in June, annually. The Board will review the financial condition of the district on a monthly basis. The monthly reconciliation statement will show the year-to-date revenue received, the year- to-date expenses compared to the budget by fund, the percent of revenue/expense to budget and the fund balance percent. FINANCIAL ACCOUNTABILITY The Board of Education has effectively implemented policies governing the district s accounting, auditing and financial reporting including fraud and purchasing/bidding policies. The financial operations of the district are established within the parameters of all federal, state and local reporting requirements. An annual audit is performed at the direction of the Board of Education with direct reporting of audit results to a community-based audit review team, also facilitated by Board of 64 Elizabeth H., Lee's Summit High School

71 Education members. The audit review team performs an in-depth review of the audit process, audit report and accompanying letter to district management. During the school year, the district was randomly selected for audit by the Missouri State Auditor s Office (SAO). The review from the SAO lead to recommendations in five areas of district operation. The Board of Education responded to each SAO recommendation and directed practice changes where applicable and necessary. The SAO gave the district an audit rating of good. The Board of Education appoints a Finance Committee comprised of two Board members, the superintendent and associate superintendent of business and operations. These team members are tasked with the monthly review of revenue, expense, fund balance, investments and finance/facility issues. The Board of Education Finance Committee members report to the full Board of Education during the regular monthly meeting and include the detailed accounting of the items discussed during the finance meeting. The Board of Education dedicates a portion of each monthly meeting to finance. In addition, annual work sessions are held to discuss and determine short- and longterm finance and facility planning. Per Board of Education policy DB, the adopted budget serves as the control to direct and limit expenditures in the district. Overall responsibility for assuring control rests with the superintendent, who will establish procedures for budget control and reporting throughout the district. All moneys received by the school district shall be disbursed only for the purposes for which they are levied, collected or received. The Board of Education has set a minimum goal of 15 percent for the fiscal year ending fund balance. LOCAL REVENUE SOURCES The school year revenue budget includes estimates for tuition paid by surrounding school districts sending their students to attend Summit Technology Academy (STA). Approximately 202 students attend the half-day program at the tuition rate of $1,750 per student. The enrollment at STA for students from other school districts is projected to remain consistent over the next four budget years. The Missouri Innovation Campus, home of STA, will provide a partnership with the University of Central Missouri (UCM). UCM will be renting facility space for its programs which will be another source of revenue for the school district. The amount of revenue will be determined following building completion, not finalized at the time of budget preparation. 65

72 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Lee s Summit R-7 School District was established under the Statutes of the State of Missouri. The District operates as a "six director" district (with seven members of the Board of Education) as described in Chapter 162, of the Revised Statutes of Missouri. REPORTING ENTITY The financial reporting entity consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity s financial statements to be misleading or incomplete. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. Financially accountable means the primary government is accountable for the component unit and the primary government is able to impose its will or the component unit may provide financial benefits or impose a burden on the primary government. In addition, component units can be other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity s financial statements to be misleading or incomplete. Based upon the application of these criteria, the District has determined that no other outside agency meets the above criteria and, therefore, no other agency has been included as a component unit in the District s budget. In addition, the District is not aware of any entity which would exercise such oversight that would classify the District as a component unit of the entity. FUND ACCOUNTING The accounts of the District are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are summarized by providing a separate set of self-balancing accounts that include the assets, liabilities, and fund balances arising from revenues and expenditures. 66

73 The General (Incidental) Fund is used to account for all financial resources except those required to be accounted for in another fund. This fund accounts for transactions involving local taxes; Foundation Program payments such as Basic Formula, Transportation, Early Childhood Special Education, Career Ladder, Educational Screening Entitlement/PAT, and Vocational/At- Risk; along with various other transactions associated with federal projects. The Special Revenue (Teachers) Fund is used to account for revenue sources Katie L., Lee's Summit High School legally restricted to expenditures for the purpose of teachers' salaries and benefits and tuition payments to other school districts. The Capital Projects Fund is used to account for all facility acquisition, construction, lease purchase principal and interest payments, and other capital outlay expenditures. Expenditures for ordinary repairs to school property are not expensed to the Capital Projects Fund. Capital expenditures are defined as expenses paid or incurred for the acquisition or repair of assets that will remain useful for more than one year. Revenue placed in the Capital Projects Fund comes from the following sources: tax rate set in the Capital Projects Fund bond sale proceeds net insurance recoupment for a capital loss money received from the sale of capital assets including real estate, furniture, and equipment inter-fund transfers money received from any other source for buildings, equipment, lease purchase obligations, or other capital purposes The Debt Service Fund is used to account for the resources accumulated for and the payment of long-term debt. Amounts in the Debt Service Fund are generated from the Debt Service Fund tax levy and are used solely to retire bonded debt. Paying agent fees are included as an expense of the Debt Service Fund. Other expenses associated with the issuance of bonds are paid from the various funds based on the type of bond issue (a new issue or a refunded issue). 67

74 The Student Activities Fund is used to account for monies held by the District in a trustee capacity for individual student groups. The school board is responsible for all student activity funds in the district and are budgeted and controlled in the same manner as other governmental funds. The Child Nutrition Services Fund is used to account for all Child Nutrition program transactions (school meals) as well as Federal and State free and reduced student lunches and is budgeted and controlled in the same manner as all other funds. BASIS OF ACCOUNTING 68 The District's policy is to operate its budget and monthly financial statements on the modified cash basis of accounting. Revenues are recognized in the accounting period in which they are received. Expenditures are recognized in the accounting period in which the expense is made. INVENTORIES Inventories are valued at average cost and consist of purchased food, Meghan F., Lee s Summit North High School supplies and donated government commodities. The cost is recorded as an expenditure at the time the inventory is delivered to the ordering budget manager. Reporting inventories are equally offset by a fund balance reserve, which indicates they are unavailable for appropriation. Changes are made at year-end in accordance with the physical inventory and reconciliation to the general ledger. CASH AND TEMPORARY INVESTMENTS The District maintains a cash and temporary investment pool that is available for use by all funds except the Debt Service Fund. State law requires that all deposits of the Debt Service Fund be maintained in a separate account. The District also keeps bond issue funds in a separate account. Investments of the pooled accounts consist primarily of repurchase agreements, carried at fair value, which approximates cost. Interest income, when earned, is allocated to individual funds based upon cash and temporary balances. Missouri statutes require that all deposits with financial institutions be collateralized. The Board authorizes the treasurer and the finance department to direct the investment management of district funds not needed for the daily operation of the district. Board policy outlines the type(s) of allowable investments and other pertinent requirements for the investment of district funds. Monthly, the Board of Education reviews a list of investments.

75 TAXES Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on November 1 and are payable by December 31. All unpaid taxes become delinquent January 1 of the following year. The county collects the property taxes and remits them to the District on a weekly basis. The majority of these tax revenues are received in late December and through mid-february. CHANGES IN LONG-TERM DEBT Article VI, Section 26(b), Constitution of Missouri, limits the outstanding amount of authorized general obligation bonds of a district to fifteen percent of the assessed valuation of a district, including state-assessed railroad and utilities. EMPLOYEE COMPENSATION The salary payment schedule of the District requires the payment of salaries and benefits over a twelve-month period for all employee groups. The payrolls for the final three months of the fiscal year are included as expense for the applicable fiscal year. PENSION PLANS The District contributes to the Public School Retirement System of Missouri (PSRS), a cost sharing multiple employer defined benefit pension plan. Positions covered by the PSRS are not covered by Social Security. PSRS benefit provisions are set forth in Chapter , RSMo. PSRS members are required to contribute 14.5 percent of their annual covered salary and district-paid health and dental insurance premium. The District is required to contribute a matching amount. The contribution requirements of members and the District are established and may be amended by the PSRS Board of Trustees. The District also contributes to the Public Education Employee Retirement System of Missouri (PEERS), a cost sharing multiple-employer defined benefit pension plan for eligible employees. PEERS provides retirement and disability benefits to employees of the District who work 20 or more hours per week and who do not contribute to the PSRS. Certain part-time certified employees may be covered by this plan. Benefit provisions are set forth in Chapter , RSMo. PEERS members are required to contribute 6.86 percent of their annual covered salary and the District is required to contribute a matching amount. DEFERRED COMPENSATION PLAN The District offers all employees a choice of deferred compensation plans created in accordance with Internal Revenue Code Sections 457(b) or 403(b) through the CSD Retirement Trust. 69

76 POST EMPLOYMENT BENEFITS The District provides COBRA benefits u nder the Consolidated Omnibus Budget Reconciliation Act (COBRA), to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The District utilizes a third party administrator to manage the day-to-day operations of the COBRA and retiree benefits. The District offers continued healthcare benefits to retired employees who elect to participate. The retiree pays the premium. There is no additional charge to the District for this state-law mandated benefit. INSURANCE PROGRAM The District, along with various other local school districts, participates in the Missouri United School Insurance Council ("MUSIC"), an insurance association for workers' compensation, general liability, and property casualty insurance. MUSIC requires an annual premium payment to cover estimated claims payable and reserves for claims for each entity. Part of the assessment purchases group excess insurance contracts. INTERFUND TRANSFERS Section , RSMo, and administrative interpretations provide for several interfund transfers that a school district may make. The budget includes interfund transfers from the General Fund to the Teachers Fund. This transfer is required for statutory compliance since the Teachers Fund has a zero beginning fund balance and statutes require the District to transfer an amount sufficient to cover all expenditures that are not covered by another source of revenue. An interfund transfer is also budgeted from the General Fund to the Capital Projects Fund for expenses not covered by another source of revenue. The annual amount of transfer is capped by DESE, with the calculation performed by DESE and finalized on June 30, The preliminary transfer amount calculated by DESE for is $7,496,503 with the District budgeting a transfer of $2,641,989. FUND BALANCE Fund balance has been a continual area of focus for the Board of Education and administrative team. Using an analysis of cash flow, the Board of Education has set a minimum fund balance at 15% of operating expenditures. A balance of 15% or more allows the District to meet its expenditure obligations during the months (July through December, annually) of the fiscal year in which minimal revenue is received. 70

77 FINANCIAL SECTION Budgets are financial planning and decision-making documents. The Financial Section is the heart of the budget document. The budget financial schedules present the adopted budget compared to the past actual revenues and expenditures. L. Holderman, Lee's Summit West High School A. Lock, Lee's Summit West High School Tori Barnes, Campbell Middle School L. Turner, Lee's Summit West High School 71

78 The District adheres to the same system of accounting for budgeting and recording of actual revenues and expenses. Annually, the District is required to report to the Missouri DESE on revenue by object and expenditures by function and by object. The District also utilizes additional program codes to further identify specific revenues and expenses. The District uses budget manager/security codes to restrict access to accounts and to route and secure approval of purchasing transactions. SIGNIFICANT REVENUE SOURCES The following explanations cover the major local, county, state and federal revenues which are allocated to the General, Teachers, Debt Service and/or Building Funds according to the tax levy associated with each fund or at the discretion of the Board of Education. Other revenues are particular to the funds that they support. Property Taxes Funds derived from taxing the assessed values of real and personal property within the District based upon the authorized tax levy. The growth in property taxes has been budgeted based on the estimated assessed value, the type of assessment growth and the projected tax levy using the historic rate of collection. Sales Taxes (Proposition C) Funds received from the state based upon the portion of the state sales tax appropriated to school districts. Even though these funds are received from the state, they are considered a local source of revenue. The District is required to roll back the local tax levy equivalent to 50 percent of the sales tax revenue received the prior year. This allocation is based on a per student amount determined on an annual basis. Sales taxes have been budgeted based on conservative growth per WADA using the projected increases in student attendance. Basic Formula Amount received from the state based upon the State Foundation Formula. This estimate is based on average daily student attendance, a State Adequacy Target (SAT) of $6,200. The final SAT for the school year was calculated at $6,199. Classroom Trust Fund Amount received from the state based upon the State Foundation Formula attributable to gaming proceeds is estimated to remain unchanged from the prior year. Federal Funds Funds received from various federal sources for categorical programs comprise virtually all of the federal funds received by the District, overall, approximately 4% of the budgeted revenue. This source of revenue remains unchanged as a percent of the total revenue budget. 72

79 REVENUE The total revenue budget for is estimated to increase by $4.8 million (2.06%) to a total of $242 million when compared to the revenue projection. The significant operating fund revenue components, which account for slightly over 87 percent of the operating revenue in the budget, are received in the three revenue areas identified below: Local Property Taxes Increase estimated at $2.5 million (2.9% increase) Local property tax revenue is recorded in the General, Debt Service and Capital Projects fund, based on the levy apportioned to each fund. The budget includes an estimated total levy of $5.8618, a decrease from the school year. The tax rate was calculated using an assessed valuation of $1,942,772,167, a 6.24 percent increase from the prior year s certified assessed values. The increase in assessed value is projected to result from increases in new construction, as 2017 is a reassessment year. The new construction increase has been estimated by the District, using housing permit data provided by the City of Lee s Summit. The District also expects a slight increase in personal property values. The final tax rate will be established, using forms provided by the Missouri State Auditor s Office, after certified values from Jackson and Cass Counties are provided, prior to October 1, 2017, as required by Missouri Statute. Local tax collection is budgeted at a rate of 95.5 percent of total taxes assessed. Proposition C Sales Tax Increase estimated at $401,751 (2.41% increase) The Missouri Department of Elementary and Secondary Education estimates the amount of funding per weighted ADA (WADA) will be approximately $988, an increase of approximately nine dollars per WADA from the prior year. For , the District is budgeting $988 per previous year WADA, which results in a projected increase in this revenue area due to increased student enrollment and an increase in the per student amount. All Proposition C sales tax revenue is recorded in the Teachers Fund. State Basic Formula Minimal increase estimated at $72,215 (0.10% increase) Basic Formula revenues (including the Classroom Trust Fund) are projected using a State Adequacy Target (SAT) of $6,200. This category of revenue shows a slight increase due to student enrollment growth. The calculation includes a decrease in the dollar value modifier (DVM) from in to for A total enrollment growth of 230 students (1.28 percent increase from the school year enrollment). The official student enrollment number is based on the last Wednesday in September, consistent with reporting to the Missouri Department of Elementary and Secondary Education. All Basic Formula revenue is recorded in the Teachers Fund. Other categories of revenue are estimated based on historical and prior year receipt patterns and District allocations of revenue, impacting the General, Teachers, Capital Projects and Debt Service Funds. Specifically: 73

80 Other local revenue is budgeted to increase in revenue categories of other taxes and miscellaneous local sources including nutrition services. County increases are indicative of state assessed utility changes. Other state revenues are expected to decrease primarily due to a reduction in state funds available to reimburse for high cost special education students. Federal revenue shows an increase based on the reimbursement from energy grant funds for the purchase of compressed natural gas buses. Revenue in the Nutrition Services Fund is impacted by an increase in student meal prices ranging from five to ten cents. The prices for adult meals increased by 15 cents for regular meals and 50 cents for premier meals. The department is estimating student and adult participation to remain consistent with prior year numbers. Revenue in the BASS Fund is impacted by the number of children participating in programs offered. The BASS program did not increase tuition fees for the school year. It is anticipated the number of children serviced by the program will remain consistent. Revenue in the Student Activity Fund is expected to remain stable, with the exception of a slight reduction due to the elimination of a $10 programming/activity fee for middle and high school students. REVENUE FORECAST Budget forecasting is an essential tool for long term planning of the District's funds. Revenue projections are based on information currently available and certain estimates are based on historical information. The projections have been carefully reviewed; however, actual results may vary from the forecasts. The District evaluates the revenue forecasts on a continual basis in order to provide the most current information available based on new information presented to the District. Variations between actuals and forecasts could have a positive or negative impact. Below is a summary of the major revenue assumptions used to project the through estimates: 1. The forecast for and (non-reassessment years) is based on an estimated increase in assessed valuations of 1.00%. For the school year, the assessed value is expected to increase by 3%. The changes in assessed value are projected to impact the tax rate slightly for each of these budget years. The projected rates are: $ for , $ for and $ for The assessed values and tax rates will impact the General Fund, Debt Service Fund and Capital Projects Fund, as each of these funds have a tax rate associated with the fund. 2. The Foundation Formula and Classroom Trust revenue forecast factors are estimated to increase slightly at an average of 0.70% each year. Projected student enrollments are used to determine WADA. 3. Proposition C sales tax revenue is expected to increase by approximately 2% 74

81 based on increasing student enrollment numbers and modest projections in the per student amount (WADA), estimated on historical trends for this revenue source. 4. Other county, state and federal revenues remain relatively flat. 5. Revenue in the Nutrition Services Fund is impacted by anticipated student meal price increases ranging from approximately five to ten cents. The department is estimating student and adult participation to remain consistent. 6. Revenue in the BASS Fund is impacted by the number of children participating in programs offered. The BASS program is not expecting to increase tuition fees through The number of children serviced by the program is projected to remain relatively stable. 7. Revenue in the Student Activity Fund is expected to remain stable. SIGNIFICANT EXPENDITURE CATEGORIES Salaries Amounts paid to employees for services rendered. The budgeted combined overall increase of approximately 2.8 percent resulted from the salary adjustments given to District employees for education and salary schedule improvements. Benefits Amounts paid on behalf of employees for retirement, Medicare, medical insurance, workers compensation, unemployment compensation, life and disability insurance, and tuition reimbursement. The total budget for benefits is expected to remain stable due to changes to worker s compensation made at the beginning of the fiscal year. Purchased Services Services that are professional and technical in nature. These expenditures are budgeted to remain consistent with prior year. Supplies Expenditures for all supplies for the District. Supply costs are expected to increase. This increase is due to the increase in food costs, utility costs, supply costs and staffing levels. Capital Outlay Expenditures for the acquisition of fixed assets, including land, buildings and major equipment. Long and Short Term Debt Expenditures for the retirement of debt, the payment of interest on debt, and the payment of fees. EXPENDITURES All funds where salary and benefits are recorded are impacted by the salary and benefit changes approved for the school year and listed below, including the following funds: General (Incidental), Special Revenue (Teachers), Nutrition Services, BASS and Student Activity. The budget includes salary and related benefit increases of $5.2 million for District 75

82 employees. Employee salary schedules base increases are indicated in the table below, employees did not receive step movement for longevity. Schedule Base Increase Percent Increase Administrator $0.80 per hour 3.32% Professional $0.59 per hour 3.46% Support $0.35 per hour 3.46% Teacher $1,500 annual 3.57% Salary adjustments provided to District employees earning advanced degrees. Targeted salary increases for extra duty contracts, with non-scheduled salary increases tied to the average total salary increase. The salary impact is estimated at $576,148. A salary schedule was formalized for various types of hourly pay for certified and support staff. In addition, salaries were development for online class instructors and for instructors of college credit courses. The estimated increase to implement this hourly salary schedule equals $182,000. Total district-wide additional net FTE staff positions, an estimated cost increase of $1,863,144. The budget impact is offset by redirection of $758,149 in existing resources, resulting in a net budget expense increase of $1,104,995. Benefit increases include a projected eight percent for health insurance for the plan year beginning on January 1, In addition, the budget includes increases in benefits tied to salary including state-mandated retirement, social security/medicare, life insurance and disability insurance. Total budgeted expenditures in the operating funds increased by $7.9 million or 4.17 percent from the projected budget due to increases in employee salaries, additional staff, benefits, increases in general instructional materials, supplies and other site operating expenses due to student enrollment growth and operational increases. The increases for expenses other than salary and benefit will impact the General (Incidental) fund. The District budgeted for a $1.5 million decrease in the Operating (combined General and Teachers) fund balance for the year. This decrease will make the projected ending reserve balance percent, which remains well above the targeted minimum fund balance of 15 percent. The ending fund balance is equivalent to 3.33 months of operating expenses. The Capital Projects fund budget includes estimated expenses of $7.8 million and includes lease purchase payments for multiple projects approved in prior years. Expenditures include funding for instructional, music and regular equipment budgeted at the site level on a per student allocation. District-wide needs are restricted to funding for the Capital Projects Team, equipment tied to additional staff positions, and funds to repay the lease purchase of technology, compressed natural gas (CNG) school buses, facility site and CNG maintenance vehicles. Funding in the Capital Fund is achieved through the resources provided by a $0.05 levy and a budgeted transfer from the Incidental Fund to the Capital Projects fund. The District was able to address a number 76

83 of maintenance projects with revenue received from the 2015 bond issue, to preserve and build the fund balance in the Capital Projects fund. During the school year, the process to revise the District s Comprehensive Facility Master Plan (CFMP) will begin, consistent with the Board of Education s priority number 2. Updated student demographic data will be received during November 2017 and will be the primary focus for the District s short term (one to three years) planning to address facility space needs. For the school year, student enrollment uses approximately 85 percent of the district-wide school site capacity. With projected student enrollment increases, facility needs are an immediate concern. To address the board of education s priority number 2, a CFMP team will be established and will begin addressing identified parameters in terms of 21 st century learning spaces. Previously identified major building projects including elementary, middle and high schools are expected to be part of the CFMP team s planning work. The District currently has two parcels of land designated as future school sites. Funding for the projects identified in the CFMP will be primarily from general obligation bonds. In the Bond Fund, the remaining bond proceeds from the issue approved by voters in April 2015, approximately $5.2 million will be used to complete the remaining projects identified at the election, with the remaining bond proceeds prioritized by the board of education during the school year. The budget includes the balance of the 2015 bond issue resources as a current year expense. The Debt Service Fund expenses for are increased by approximately $41.3 million dollars for a payment related to a prior year refunded bond. The funds to make this payment reside in the Debt Service fund balance. Section , RSMo, and administrative interpretations provide for several interfund transfers that a school district may make. The budget includes interfund transfers from the General Fund to the Teachers Fund for expenses in the Teachers Fund in excess of current revenue. This transfer is required for statutory compliance since the Teachers Fund has a zero beginning fund balance and statutes require the District to transfer an amount sufficient to cover all expenditures that are not covered by another source of revenue. An interfund transfer is also budgeted from the General Fund to the Capital Projects Fund for expenses not covered by another source of revenue. The annual amount of transfer is capped at a maximum of $162,326 or 7% multiplied by the SAT, multiplied by the WADA. This calculation is performed by DESE and finalized on June 30, The preliminary transfer amount calculated by DESE for is $7,496,503 with the District budgeting a transfer of $2,641,

84 EXPENDITURE FORECAST Expenditure projections are based on information currently available regarding the identified future needs of the District and historical spending patterns. The projections have been carefully reviewed; however, actual results may vary from the forecasts. The District also evaluates the expense forecasts on a continual basis in order to provide the most current information available based on new information and factors impacting the forecasting process. Variations between actuals and forecasts could have a positive or negative impact. Below is a summary of the major expenditure assumptions used to project the through estimates. Salary and benefit assumptions impact the General, Teachers, Nutrition Services, BASS and Student Activity Funds: 1. Expense budgets include equivalent salary schedule step increases averaging approximately two percent per year. 2. Salary and benefit cost for additional staff, based on projected student enrollment growth and other District factors, estimated at an average increase of 0.85%. 3. Health insurance increases estimated at eight percent per year. 4. In the General Fund, minimal increases in materials and supplies tied to student enrollment growth. 5. At this time, increased expenses are planned in the Capital Projects Fund in anticipation of the completion of the long-range Capital Improvement Plan during the school year. Lease purchase principal and interest payments will continue, at declining levels, through the school year. 6. The Debt Service Fund reflects the principal and interest payments based on current outstanding debt. 7. The Bond Fund shows expense of $288,291 for the school year which represents the remaining resources generated by the 2015 bond issue. At this time, no additional general obligation bonds are scheduled through the school year. 78

85 BUDGET SCHEDULES The following pages present the budget schedules for all budgeted funds within the District. In each schedule, information is presented for the four prior years, the budget year and three projected budget years. The schedules are presented for all funds in the District, followed by the detail for each individual fund. Actual COMBINED ALL DISTRICT FUNDS Actual Actual Budget Proposed Projected Projected Projected REVENUE Local Property Tax $100,157,328 $101,530,561 $103,543,970 $107,586,948 $111,968,512 $114,408,616 $116,517,316 $117,974,154 Prop C Sales Tax $14,831,594 $15,452,501 $15,947,083 $16,680,976 $17,082,727 $17,327,655 $17,766,910 $18,210,556 Other Tax $5,545,951 $5,241,277 $5,371,215 $5,795,128 $5,671,895 $5,735,588 $5,799,998 $5,865,132 Interest $4,293,013 $5,446,037 $6,448,880 $2,058,444 $2,053,310 $2,054,337 $2,055,364 $2,056,392 Nutrition Services $4,624,348 $4,633,357 $4,760,086 $5,688,958 $5,150,500 $5,183,722 $5,217,158 $5,250,810 Other Miscellaneous $10,695,741 $10,413,069 $11,761,487 $11,679,945 $12,203,782 $12,627,412 $13,071,208 $13,369,973 Sale/Refunded Bonds $29,345,000 $71,780,000 $40,000,000 $0 $0 $0 $0 $0 County Fines, Forfeitures $127,371 $161,033 $139,534 $194,838 $164,761 $181,237 $199,361 $219,297 State Assessed Utility $3,423,547 $3,741,123 $3,884,135 $3,969,401 $4,233,319 $4,402,060 $4,577,527 $4,759,988 State Basic Entitlement $57,404,484 $59,741,574 $62,240,455 $67,239,663 $66,717,189 $69,205,084 $72,150,584 $74,088,161 Transportation $1,781,606 $2,059,419 $1,562,476 $1,214,750 $1,215,000 $1,215,608 $1,216,215 $1,216,823 Early Special Education $1,842,843 $2,218,677 $2,883,505 $3,516,491 $3,076,411 $3,414,816 $3,790,446 $3,979,968 Other $2,999,230 $2,845,763 $2,443,815 $2,399,362 $2,794,035 $2,830,029 $2,868,386 $2,909,260 Federal Medicaid/Title/Grants $1,757,923 $2,861,009 $2,733,966 $2,590,690 $2,968,577 $3,233,653 $3,540,759 $3,896,972 Nutrition Services $2,132,975 $2,181,662 $2,225,802 $2,436,439 $2,441,200 $2,527,970 $2,617,824 $2,710,872 Special Education $3,351,502 $3,838,313 $3,367,165 $3,331,592 $3,134,394 $3,154,060 $3,178,868 $3,199,820 Other $782,667 $487,131 $405,161 $892,387 $1,285,288 $1,002,992 $1,077,611 $1,233,309 TOTAL REVENUES $245,097,123 $294,632,506 $269,718,736 $237,276,012 $242,160,900 $248,504,839 $255,645,535 $260,941,487 EXPENDITURES Instructional Services Employee Salaries & Benefits $101,078,270 $107,748,656 $110,616,443 $113,576,395 $119,694,794 $122,428,823 $125,031,263 $127,571,671 Purchased Services $5,208,349 $7,684,229 $7,166,529 $6,822,180 $6,842,646 $6,925,531 $7,000,863 $7,064,188 Materials & Supplies $5,398,631 $5,229,674 $5,478,476 $5,438,340 $5,455,743 $5,521,322 $5,598,349 $5,659,999 Equipment $502,758 $457,663 $468,922 $693,298 $793,436 $793,575 $793,714 $793,853 Student Support Services Employee Salaries & Benefits $7,034,341 $6,442,815 $7,348,779 $8,158,363 $8,484,698 $8,737,064 $8,982,023 $9,209,473 Purchased Services $95,405 $199,297 $254,457 $219,357 $220,015 $225,582 $235,145 $247,950 Materials & Supplies $142,587 $106,838 $83,936 $106,245 $106,585 $109,260 $113,869 $120,046 Equipment $1,495 Instruction Support Services Employee Salaries & Benefits $4,064,044 $3,914,125 $4,170,017 $4,195,580 $4,363,403 $4,468,350 $4,572,340 $4,672,947 Purchased Services $582,678 $1,031,377 $1,150,218 $1,161,998 $1,165,484 $1,186,718 $1,205,721 $1,220,946 Materials & Supplies $706,750 $569,198 $726,333 $781,195 $783,695 $803,366 $837,256 $882,673 Equipment $18,740 $54,323 $22,941 $15,090 $15,093 $15,096 $15,099 $15,102 General Support Services Employee Salaries & Benefits $1,560,837 $1,675,424 $1,982,352 $1,858,492 $1,932,831 $1,978,291 $2,023,446 $2,067,334 Purchased Services $802,734 $684,982 $532,771 $708,066 $752,527 $771,559 $788,489 $801,755 Materials & Supplies $61,911 $19,955 $20,164 $93,275 $93,573 $95,922 $99,969 $105,391 Equipment $998,485 $7,183 $15,296 $25,460 $25,465 $25,470 $25,475 $25,480

86 Actual COMBINED ALL DISTRICT FUNDS Actual Actual Budget Proposed Projected Projected Projected EXPENDITURES (Continued) School Administration Employee Salaries & Benefits $6,919,066 $7,483,147 $7,822,216 $7,871,414 $8,186,271 $8,372,236 $8,557,662 $8,739,214 Purchased Services $88,299 $105,427 $112,774 $119,887 $120,247 $123,290 $128,516 $135,514 Materials & Supplies $151,710 $142,252 $163,410 $227,546 $228,274 $234,004 $243,875 $257,104 Equipment Central Services Employee Salaries & Benefits $4,669,617 $5,491,792 $6,605,758 $6,050,962 $6,293,001 $6,533,075 $6,761,582 $6,965,130 Purchased Services $1,741,038 $2,108,726 $3,013,910 $4,308,679 $4,321,605 $4,430,233 $4,526,871 $4,602,622 Materials & Supplies $1,429,753 $347,133 $240,334 $546,621 $548,370 $562,134 $585,848 $617,627 Equipment $341,828 $29,218 $86,775 $90,831 $90,849 $90,868 $90,886 $90,904 Operation and Maintenance Employee Salaries & Benefits $12,021,294 $12,189,467 $11,895,900 $11,996,157 $12,746,003 $13,291,610 $13,705,597 $14,121,545 Purchased Services $1,725,888 $1,990,299 $1,699,314 $3,213,047 $3,222,686 $3,304,233 $3,444,307 $3,631,866 Materials & Supplies $4,717,709 $4,879,422 $4,248,502 $4,647,766 $4,662,639 $4,779,671 $4,981,301 $5,282,347 Equipment $1,732,247 $1,769,322 $200,097 $181,194 $181,231 $181,267 $181,303 $181,339 Transportation Services Employee Salaries & Benefits $6,293,263 $6,519,596 $6,719,041 $6,883,647 $7,578,992 $7,730,466 $8,168,807 $8,731,891 Purchased Services $857,330 $814,059 $729,578 $895,661 $898,348 $921,080 $960,127 $1,012,410 Materials & Supplies $965,648 $1,058,066 $1,063,155 $1,280,537 $1,284,635 $1,316,879 $1,372,432 $1,446,880 Equipment $1,731,341 $1,805,330 $2,492 $1,695,977 $10,000 $10,250 $10,506 $10,769 Nutrition Services Employee Salaries & Benefits $3,588,533 $3,839,696 $3,917,978 $3,974,747 $4,130,496 $4,192,453 $4,255,340 $4,319,170 Purchased Services $89,384 $134,476 $118,716 $95,894 $88,700 $90,000 $91,314 $92,647 Materials & Supplies $2,972,196 $3,080,732 $3,051,366 $2,985,325 $3,357,000 $3,404,669 $3,451,994 $3,503,774 Equipment $218,464 $57,192 $63,940 $117,290 $75,000 $76,050 $77,107 $78,264 Community Services Employee Salaries & Benefits $3,470,657 $3,853,211 $3,967,858 $3,967,744 $4,106,616 $4,208,116 $4,308,819 $4,406,008 Purchased Services $166,184 $273,575 $236,843 $230,852 $231,545 $233,996 $236,265 $238,226 Materials & Supplies $354,570 $371,593 $324,406 $473,652 $475,167 $483,312 $490,594 $496,429 Equipment $61,781 $69,244 $5,040 $5,995 $5,996 $5,997 $5,999 $6,000 Site/Facility Improvements Construction Contracts $1,226,003 $890,678 $12,077,093 $20,756,121 $6,739,372 $5,325,994 $5,405,884 $5,486,972 Equipment $24,101 $53,572 $2,377,995 $1,134,922 $103,400 $100,000 $100,000 $100,000 Land Purchase $100,000 $3,091,375 $60,000 Purchased Services $407,570 $26,518 Bond and Lease Payments Bond/Lease Principal $42,441,347 $45,641,448 $41,594,295 $18,667,335 $61,309,985 $18,616,625 $17,082,949 $16,790,108 Bond/Lease Interest $9,419,234 $8,710,739 $9,162,802 $8,839,664 $8,361,761 $5,693,681 $5,196,996 $4,735,644 Other Costs $227,575 $443,310 $143,139 $4,292 $10,000 $10,000 $10,000 $10,000 TOTAL EXPENDITURES $237,902,578 $250,078,461 $265,181,306 $255,205,105 $290,098,178 $248,408,119 $251,755,903 $256,549,216 FUND BALANCE Beginning Fund Balance $105,016,182 $112,210,728 $156,764,773 $161,302,203 $143,373,110 $95,435,832 $95,532,552 $99,422,184 Excess Revenue/Expense $7,194,545 $44,554,046 $4,537,430 -$17,929,093 -$47,937,278 $96,720 $3,889,632 $4,392,271 ENDING FUND BALANCE $112,210,728 $156,764,773 $161,302,203 $143,373,110 $95,435,832 $95,532,552 $99,422,184 $103,814,455 The total fund balance shows a decrease from to due to the Debt Service fund balance reducing for a refunded bond payment during FY18 of approximately $43 million, a planned reduction in the General Fund of approximately $700,000, and a reduction in the Bond Fund for expending the majority of the remaining bond resources. Based on projections, the total fund balance will be increasing through FY21. 80

87 GENERAL (INCIDENTAL) FUND The General Fund accounts for general activities or other activities except those required to be accounted for in the Special Revenue, Debt Service or Capital Projects. Local REVENUE Actual Actual Actual Budget Proposed Projected Projected Projected Property Tax $81,654,664 $82,947,422 $84,155,964 $87,489,707 $90,574,958 $92,602,406 $94,056,920 $95,289,153 Other Tax $979,583 $1,107,977 $1,796,675 $1,210,031 $2,096,957 $2,028,265 $2,046,519 $2,201,943 Interest $820,861 $745,036 $708,251 $742,467 $771,700 $784,750 $794,598 $805,000 Other Miscellaneous $507,795 $2,134,016 $2,317,327 $3,768,420 $3,527,000 $3,894,559 $4,185,316 $4,353,249 County Fines, Forfeitures $12,513 $14,366 $7,217 State Assessed Utility $2,521,375 $2,758,942 $2,854,670 $2,909,914 $3,056,879 $3,178,727 $3,305,432 $3,437,188 State Transportation $1,781,606 $2,059,419 $1,562,476 $1,214,750 $1,215,000 $1,215,608 $1,216,215 $1,216,823 Early Special Education $1,842,843 $2,218,677 $2,883,505 $3,142,525 $930,631 $1,058,593 $1,175,038 $1,233,790 Other $819,992 $887,494 $777,125 $859,272 $1,055,002 $1,092,536 $1,135,763 $1,371,531 Federal Medicaid/Title/Grants $1,571,720 $2,448,450 $2,184,658 $1,229,196 $1,144,693 $1,666,424 $1,885,829 $2,122,784 Special Education $3,351,502 $3,833,313 $3,367,165 $3,156,484 $2,827,794 $2,864,260 $2,885,618 $2,905,880 Other $1,000 $750 $2,960 $347,288 $532,992 $607,611 $763,309 TOTAL REVENUES $95,864,453 $101,156,112 $102,615,782 $105,725,725 $107,547,902 $110,919,120 $113,294,859 $115,700,650 EXPENDITURES Instructional Services Employee Salaries & Benefits $10,549,459 $10,700,099 $12,743,198 $12,934,616 $14,377,755 $15,114,336 $15,679,489 $16,143,556 Purchased Services $2,006,743 $4,591,454 $2,561,556 $2,385,097 $2,378,256 $2,412,455 $2,434,655 $2,445,683 Materials & Supplies $2,963,152 $2,787,350 $2,966,193 $2,834,130 $2,874,743 $2,922,322 $2,996,429 $3,018,765 Student Support Services Employee Salaries & Benefits $3,487,352 $2,983,958 $3,819,873 $4,282,163 $4,472,830 $4,648,970 $4,816,256 $4,964,556 Purchased Services $95,405 $199,297 $254,457 $219,357 $220,015 $225,582 $235,145 $247,950 Materials & Supplies $142,587 $106,838 $83,936 $106,245 $106,585 $109,260 $113,869 $120,046 Instruction Support Services Employee Salaries & Benefits $906,673 $597,967 $1,011,638 $1,024,716 $1,081,559 $1,124,150 $1,164,601 $1,200,461 Purchased Services $582,678 $1,031,377 $786,761 $758,961 $758,417 $773,871 $787,136 $796,082 Materials & Supplies $706,750 $569,198 $726,333 $781,195 $783,695 $803,366 $837,256 $882,673 General Support Services Employee Salaries & Benefits $376,110 $462,815 $451,966 $405,189 $428,663 $445,544 $461,576 $475,789 Purchased Services $802,734 $684,982 $532,771 $707,566 $752,027 $771,059 $787,989 $801,255 Materials & Supplies $61,911 $19,955 $20,164 $93,275 $93,573 $95,922 $99,969 $105,391 School Administration GENERAL (INCIDENTAL) FUND Employee Salaries & Benefits $1,206,534 $1,346,758 $1,364,343 $1,404,433 $1,492,945 $1,551,737 $1,607,574 $1,657,074 Purchased Services $88,299 $105,427 $112,774 $119,887 $120,247 $123,290 $128,516 $135,514 Materials & Supplies $151,710 $142,252 $163,410 $227,546 $228,274 $234,004 $243,875 $257,104 81

88 Actual GENERAL (INCIDENTAL) FUND Actual Actual Budget Proposed Projected Projected Projected EXPENDITURES (Continued) Central Services Employee Salaries & Benefits $4,261,963 $5,182,822 $6,294,468 $5,683,861 $5,913,051 $6,145,906 $6,367,057 $6,563,109 Purchased Services $1,741,038 $2,108,726 $3,001,876 $4,273,251 $4,285,822 $4,393,942 $4,490,077 $4,565,275 Materials & Supplies $1,429,753 $347,133 $240,334 $546,621 $548,370 $562,134 $585,848 $617,627 Operation and Maintenance Employee Salaries & Benefits $12,021,294 $12,189,467 $11,895,900 $11,996,157 $12,746,003 $13,291,610 $13,705,597 $14,121,545 Purchased Services $1,725,888 $1,990,299 $1,699,314 $3,213,047 $3,222,686 $3,304,233 $3,444,307 $3,631,866 Materials & Supplies $4,717,709 $4,879,422 $4,248,502 $4,647,766 $4,662,639 $4,779,671 $4,981,301 $5,282,347 Transportation Services Employee Salaries & Benefits $6,293,263 $6,519,596 $6,719,041 $6,883,647 $7,578,992 $7,730,466 $8,168,807 $8,731,891 Purchased Services $825,605 $814,059 $729,578 $895,661 $898,348 $921,080 $960,127 $1,012,410 Materials & Supplies $965,648 $1,058,066 $1,063,155 $1,280,537 $1,284,635 $1,316,879 $1,372,432 $1,446,880 Community Services Employee Salaries & Benefits $1,000,257 $1,163,275 $1,277,656 $1,248,776 $1,141,040 $1,197,253 $1,251,973 $1,302,474 Purchased Services $54,362 $95,326 $41,562 $53,985 $62,435 $63,628 $64,628 $65,312 Materials & Supplies $188,639 $186,084 $154,251 $226,094 $288,717 $294,214 $298,868 $301,827 TOTAL EXPENDITURES $59,353,513 $62,864,002 $64,965,011 $69,233,778 $72,802,324 $75,356,886 $78,085,356 $80,894,464 FUND BALANCE Beginning Fund Balance $55,287,426 $57,038,207 $56,529,187 $56,342,094 $58,613,144 $57,966,503 $57,504,292 $58,070,280 Excess Revenue Over Expense $36,510,940 $38,292,110 $37,650,771 $36,491,946 $34,745,578 $35,562,234 $35,209,503 $34,806,186 Transfers In/(Out) -$34,760,159 -$38,801,130 -$37,837,863 -$34,220,897 -$35,392,219 -$36,024,445 -$34,643,514 -$34,598,907 ENDING FUND BALANCE $57,038,207 $56,529,187 $56,342,094 $58,613,144 $57,966,503 $57,504,292 $58,070,280 $58,277,559 The General Fund Balance is estimated to decrease from FY17 to FY18 by approximately $700,000. The reduction in fund balance is a planned reduction in the District s short and long term budget estimates to provide the salary increases and added staff for FY18. Conservative revenue and expense projections through FY21 will cause the fund balance to fluctuate each year and it will remain significantly above the minimum 15% balance needed. Within the General Fund, the District maintains a restricted fund balance, currently a reserve for health insurance future liability tied to the contract termination. For the school year, the Board of Education approved a transfer of $900,000 from the restricted insurance fund to the General Fund to support the salary improvements. RESTRICTED INSURANCE FUND Actual Actual Actual Budget Proposed Projected Projected REVENUE Local Other $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 TOTAL REVENUES $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 Projected EXPENDITURES Transfer $0 $0 $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $0 $0 $0 $0 $0 $0 $0 $0 FUND BALANCE Beginning Fund Balance $0 $1,809,175 $1,910,960 $2,671,404 $2,671,404 $1,771,404 $1,771,404 $1,771,404 Excess Revenue/Expense $1,809,175 $101,785 $760,444 $0 $0 $0 $0 $0 Transfer In/(Out) -$900,000 ENDING FUND BALANCE $1,809,175 $1,910,960 $2,671,404 $2,671,404 $1,771,404 $1,771,404 $1,771,404 $1,771,404

89 TEACHERS (SPECIAL REVENUE) FUND The Teachers (Special Revenue) Fund accounts for expenditures for certificated employees involved in administration and instruction. It includes revenues restricted by the State for the payment of certificated salaries. This fund will continue to operate with a zero fund balance. SPECIAL REVENUE (TEACHERS) FUND Actual Actual Actual Budget Proposed Projected Projected Projected REVENUE Local Prop C Sales Tax $14,831,594 $15,452,501 $15,947,083 $16,680,976 $17,082,727 $17,327,655 $17,766,910 $18,210,556 Other Miscellaneous $542,411 $578,941 $835,716 $865,813 $838,818 $897,535 $960,363 $1,027,588 County Fines, Forfeitures $114,858 $146,667 $132,317 $194,838 $164,761 $181,237 $199,361 $219,297 State Basic Entitlement $57,404,484 $59,741,574 $62,240,455 $67,239,663 $66,717,189 $69,205,084 $72,150,584 $74,088,161 Early Special Education $373,966 $2,145,780 $2,356,223 $2,615,408 $2,746,178 Other $1,993,376 $1,773,822 $1,504,144 $1,328,853 $1,500,000 $1,500,000 $1,495,012 $1,300,000 Federal Medicaid/Title/Grants $186,203 $264,092 $549,308 $1,361,494 $1,823,884 $1,567,230 $1,654,930 $1,774,188 Special Education $175,108 $306,600 $289,800 $293,250 $293,940 Other $205 $1,200 TOTAL REVENUES $75,073,132 $77,957,598 $81,209,023 $88,221,911 $90,579,759 $93,324,764 $97,135,818 $99,659,908 EXPENDITURES Instructional Services Employee Salaries & Benefits $90,323,757 $96,759,751 $97,503,197 $100,291,793 $104,988,719 $106,983,504 $109,016,191 $111,087,499 Purchased Services $1,665,999 $1,392,743 $2,826,545 $2,697,416 $2,724,390 $2,763,077 $2,801,483 $2,843,506 Student Support Services Employee Salaries & Benefits $3,546,989 $3,458,857 $3,528,905 $3,876,201 $4,011,868 $4,088,093 $4,165,767 $4,244,917 Purchased Services Instruction Support Services Employee Salaries & Benefits $3,096,525 $3,316,157 $3,158,380 $3,170,864 $3,281,844 $3,344,200 $3,407,739 $3,472,486 Purchased Services $363,457 $403,036 $407,067 $412,847 $418,586 $424,865 General Support Services Employee Salaries & Benefits $1,184,727 $1,212,610 $1,530,386 $1,453,303 $1,504,168 $1,532,747 $1,561,870 $1,591,545 Purchased Services $500 $500 $500 $500 $500 School Administration Employee Salaries & Benefits $5,712,453 $6,136,389 $6,457,873 $6,466,981 $6,693,326 $6,820,499 $6,950,088 $7,082,140 Central Services Employee Salaries & Benefits $407,654 $308,970 $311,290 $367,101 $379,950 $387,169 $394,525 $402,021 Purchased Services $12,034 $35,428 $35,782 $36,290 $36,795 $37,347 Community Services Employee Salaries & Benefits $41,302 $177,710 $187,181 $194,275 $201,075 $204,895 $208,788 $212,755 Purchased Services $1,360 $1,224 $1,300 $1,300 $1,300 $1,300 TOTAL EXPENDITURES $105,979,407 $112,763,186 $115,880,609 $118,958,123 $124,229,989 $126,575,121 $128,963,632 $131,400,880 FUND BALANCE Beginning Fund Balance $0 $0 $0 $0 $0 $0 $0 $0 Excess Revenue Over Expense -$30,906,275 -$34,805,589 -$34,671,586 -$30,736,211 -$33,650,230 -$33,250,357 -$31,827,814 -$31,740,972 Transfers In/(Out) $30,906,275 $34,805,589 $34,671,586 $30,736,211 $33,650,230 $33,250,357 $31,827,814 $31,740,972 ENDING FUND BALANCE $0 $0 $0 $0 $0 $0 $0 $0 83

90 DEBT SERVICE FUND The Debt Service Fund accounts for the accumulation of resources for, and the payment of principal, interest, and fiscal charges on general long-term debt. The current (excluding the refunded payment due this year) and future debt payments remain consistent over the next three projected budget years. These levels of principal and interest payments will be funded by the projected levy of $1.07 which remains unchanged through Actual Actual DEBT SERVICE FUND Actual Budget Proposed Projected Projected Projected REVENUE Local Property Tax $17,676,667 $17,753,634 $18,522,509 $19,199,966 $20,438,484 $20,832,719 $21,457,700 $21,672,277 Other Tax $2,550,237 $1,617,671 $1,087,173 $2,072,992 $35,493 $35,848 $36,710 $37,078 Interest $3,457,753 $4,681,452 $1,132,350 $1,227,389 $1,240,410 $977,382 $968,561 $989,187 Other Miscellaneous $43,670 Refunded Bonds $29,345,000 $71,780,000 County State Assessed Utility $859,370 $936,609 $999,237 $1,028,705 $1,121,829 $1,166,546 $1,213,045 $1,261,397 Federal Other $482,462 $486,131 $404,411 $488,227 $470,000 $470,000 $470,000 $470,000 TOTAL REVENUE $54,371,489 $97,255,498 $22,189,350 $24,017,280 $23,306,216 $23,482,495 $24,146,016 $24,429,939 EXPENDITURES Bond Payments Bond Principal $39,535,000 $42,540,000 $36,755,000 $13,790,000 $56,525,000 $14,815,000 $13,815,000 $13,595,000 Bond Interest $8,683,977 $8,032,271 $8,575,906 $8,345,057 $7,957,775 $5,379,699 $4,959,999 $4,565,799 Other Costs $227,575 $443,310 $4,825 $4,292 $10,000 $10,000 $10,000 $10,000 TOTAL EXPENDITURES $48,446,552 $51,015,581 $45,335,731 $22,139,349 $64,492,775 $20,204,699 $18,784,999 $18,170,799 FUND BALANCE Beginning Fund Balance $27,420,810 $33,345,747 $79,585,664 $56,439,282 $58,317,213 $17,130,654 $20,408,450 $25,769,467 Excess Revenue/Expense $5,924,937 $46,239,917 -$23,146,381 $1,877,931 -$41,186,559 $3,277,796 $5,361,017 $6,259,140 ENDING FUND BALANCE $33,345,747 $79,585,664 $56,439,282 $58,317,213 $17,130,654 $20,408,450 $25,769,467 $32,028,607 The Debt Service Fund Balance will decrease from the FY17 to FY18 fiscal year due to the payment of approximately $41.3 million during from the fund balance for a prior year refunded bond payment. 84

91 The table below provides the amount of outstanding general obligation bonds of the existing bond issues. At the end of the 2018 calendar year, the District will have $142.3 million in outstanding bonds and available bond capacity of $105.9 million. The latest bond issue was voted in 2015 and issued during 2015 and The changes in debt will be impacted solely by the pay-off of current issues each year pending any future refunding opportunities. Future bond issues are not planned at this time through the school year. The District s debt capacity, tied to assessed value, is projected to increase conservatively through 2030 while the amount of existing general obligation debt will be decreasing as outstanding bonds are paid-off. Based on current projections, without any additional bond issuance, the District will have sufficient bond capacity by 2021 of approximately $200 million. 85

92 BOND FUND PROJECTS In April 2015 voters approved a $40 million bond issue to address numerous schoolcommunity identified needs. Projects included construction of a new Summit Technology Academy / Missouri Innovation Campus as well as improvements at schools throughout the district. The school building improvements are in the areas of classroom instruction, safety and security, health and wellness, ADA (Americans with Disabilities Act) access renovations and special education. Playground upgrades to all elementary schools soft play areas and replacement of deteriorated play equipment to enhance student safety were also funded. Numerous maintenance projects at schools will continue to be impacted through the school year and school year. The budget includes expenses for a majority of the remaining bond resources to finish projects at the Lee s Summit Elementary kitchen, Lee s Summit High School flooring project, Mason Elementary two-classroom addition, Hazel Grove kitchen renovation and the Missouri Innovation Campus. Projects for the uncommitted bond resources will be prioritized and approved by the Board of Education during Local Actual Actual Actual Budget Proposed Interest $32,524 $54,243 $6,000 Bond Premium $4,534,394 Sale of Bonds $40,000,000 Projected Projected Projected TOTAL REVENUES $0 $0 $44,566,918 $54,243 $6,000 $0 $0 $0 EXPENDITURES General Obligation Bond BOND FUND Construction $209,291 $11,609,226 $20,442,115 $5,222,852 $288,291 Equipment $10,540 $2,377,995 $1,069,679 Land $100,000 $3,091,375 $60,000 Purchased Services $407,570 $26,518 TOTAL EXPENDITURES $0 $319,831 $17,486,166 $21,598,312 $5,222,852 $288,291 $0 $0 FUND BALANCE Beginning Fund Balance $288,291 $288,291 -$31,540 $27,049,212 $5,505,143 $288,291 $0 $0 Excess Revenue/Expense $0 -$319,831 $27,080,752 -$21,544,069 -$5,216,852 -$288,291 $0 $0 ENDING FUND BALANCE $288,291 -$31,540 $27,049,212 $5,505,143 $288,291 $0 $0 $0 The fund balance in the Bond Fund will decrease for the planned bond expenses during for the remaining resources provided in the 2015 issue. All bond resources are expected to be expended by the end of , with no immediate plans for any additional bond resources through the school year. 86

93 CAPITAL PROJECTS FUND Capital expenditure budgeted in the Capital Projects fund include school and program based expenditures, various equipment lease payments, technology, general equipment, school buses and other vehicles, and major facility repairs. Local REVENUE Actual Actual Actual Budget Proposed Projected Projected Projected Property Tax $825,997 $829,505 $865,497 $897,275 $955,070 $973,491 $1,002,696 $1,012,724 Other Tax $2,016,131 $2,515,629 $2,487,367 $2,512,106 $3,539,445 $3,871,475 $3,916,768 $3,796,110 Interest $14,399 $19,548 $41,362 $34,345 $35,200 $37,205 $39,000 $41,000 Other Miscellaneous $1,026,903 $557,391 $180,147 $418,440 $300,000 $55,000 $53,205 $51,205 County State Assessed Utility $42,802 $45,572 $30,229 $30,782 $54,610 $56,787 $59,050 $61,404 State Other $594 Federal Medicaid/Title/Grants $153,468 $468,000 Other $300,000 $400,000 TOTAL REVENUES $4,226,233 $4,121,113 $3,604,601 $4,293,542 $5,352,325 $4,993,958 $5,070,719 $4,962,443 EXPENDITURES Instructional Services Equipment $482,060 $414,622 $541,534 $615,995 $693,436 $693,575 $693,714 $693,853 Student Support Services Equipment $1,495 Instruction Support Services Equipment $18,740 $54,323 $22,941 $15,090 $15,093 $15,096 $15,099 $15,102 General Support Services Equipment $998,485 $7,183 $15,296 $25,460 $25,465 $25,470 $25,475 $25,480 Central Services Equipment $341,828 $29,218 $86,775 $90,831 $90,849 $90,868 $90,886 $90,904 Operation and Maintenance Equipment $1,732,247 $1,769,322 $200,097 $181,194 $181,231 $181,267 $181,303 $181,339 Transportation Services Equipment $1,731,341 $1,805,330 $2,492 $1,695,977 $10,000 $10,250 $10,506 $10,769 Community Services Equipment $61,781 $69,244 $5,040 $3,925 $5,996 $5,997 $5,999 $6,000 Site and Facility Improvements Construction Contracts $1,226,003 $653,638 $467,867 $314,006 $1,516,520 $5,037,703 $5,405,884 $5,486,972 Equipment $24,101 $43,042 $65,243 $103,400 $100,000 $100,000 $100,000 Lease Payments Principal $2,906,347 $3,101,448 $4,839,295 $4,877,335 $4,784,984 $3,801,625 $3,267,949 $3,195,108 Interest $735,258 $678,468 $586,896 $494,606 $403,986 $313,982 $236,997 $169,845 TOTAL EXPENDITURES $10,258,191 $8,625,838 $6,768,233 $8,381,158 $7,830,960 $10,275,832 $10,033,812 $9,975,372 FUND BALANCE CAPITAL PROJECTS FUND Beginning Fund Balance $16,372,600 $14,194,526 $13,685,342 $13,687,988 $13,085,059 $13,248,413 $10,740,628 $8,593,234 Excess Revenue Over Expense -$6,031,958 -$4,504,725 -$3,163,631 -$4,087,615 -$2,478,635 -$5,281,874 -$4,963,093 -$5,012,929 Transfers In/(Out) $3,853,885 $3,995,541 $3,166,277 $3,484,686 $2,641,989 $2,774,088 $2,815,700 $2,857,935 ENDING FUND BALANCE $14,194,526 $13,685,342 $13,687,988 $13,085,059 $13,248,413 $10,740,628 $8,593,234 $6,438,240 87

94 SITE AND FACILITY IMPROVEMENT DETAILS LOCATION PROJECT TYPE PROJECT DESCRIPTION TOTAL PROJECT COST BASS CAP Replace kitchen and bathroom tile flooring $3,000 BCMS EQUIP Upgrade sound system in Commons-Stage/Fieldhouse $44,800 CCE CAP Even out concrete where old playground equipment removed and add 4 large picnic tables - Orig Request $24,089 $15,000 GWE CAP Replace fence around front of building and playground $7,500 HGE CAP Paint Rms 121, 201, 224, 225, 230, 227, 226, 231, 229, Stairwell 200, Stairwell 06, Exterior cafe doors & Kids Country door $15,155 HHE CAP New epoxy floor for bathroom - Rm 151 $2,751 HHE CAP New epoxy floor for bathroom - Rm 152 $2,751 HPE CAP Remodel and update front office space $22,624 LFE CAP Replace carpet in 6th grade pod $19,770 LSE CAP Replace carpet in Rms 3, 6, 19, 21 $16,506 LSHS CAP Strip, sand B gym floor, add new graphic, recoat $56,000 LSNHS EQUIP Exterior Cyclone vacuum system installed in Engineering & Industrial Technology Lab $33,600 LSWHS CAP Upgrade PE workout facility - $90k orig request $35,000 LSWHS EQUIP 6 new cameras to be placed in specified locations to increase student, staff and patron safety $10,000 MAE CAP Paint burlap wall and hang 8 ft white board in Rm 14 $2,125 MAE CAP Replace 8 ft white board in Rm 49 $625 MLE CAP Bathroom floors and corridor that connects the restrooms needs new epoxy - Rms 130, 129, 205, 163, 165, 134D $14,408 MP CAP Install chain link fencing with black vinyl around playground $9,000 PLE CAP Replace carpet in Rms 110, 107, 106, 108, 112 $25,272 PLMS EQUIP New digital clock system $15,000 PVE CAP Replace carpet and tile in Rms 54, 60-66, 70-73, $35,000 RHE CAP Replace carpet in main office & library office $21,294 SLMS CAP Add storage container similar to what is being used at TRANS and high schools. Small concrete sidwalk would be needed $5,000 SPE CAP Replace carpet in 4th grade pod, 6th grade pod - Orig Request - $38,778 One pod approved $19,389 SVE CAP Replace carpet in Rms B-143, B-147, B-146, B-144, B-122, B-126, B-125, B-121, A-128 and install 6' x 9' water hog mat for hallway by $2,000 playground - Orig Request $55,020 Only waterhog approved SVE CAP Paint inside wall and oustide wall with railing for Rms C-132, A- 122, A-123 $2,009 SVE CAP Repair concrete outside of the gym and medically fragile room $1,246 TRE CAP Replace bathroom partitions that have become rusted and could be dangerous $8,800 UWE CAP Replace carpet in Rms 163, 164, 165, 166, Main Office Hall, Office/Conference Room $29,208 WLE CAP Repair/Replace kitchen floor and kitchen restroom floor $17,766 WVE CAP Replace 205 ft of 5 ft tall wood fencing section with chain link fence $5,000 DISTRICT CAP Contingency (Capital Projects Team) $2,401 DISTRICT CAP Roofing/Paving Contracts $500,000 DISTRICT CAP Special Projects (Projects Determined as Needs Arise During Year) $619,920 The fund balance in the Capital Projects fund will increase slightly from FY17 to FY18 due to a reduction in planned expenses. 88

95 LONG RANGE CAPITAL IMPROVEMENT PLAN During the school year, the District will begin the process to develop a ten year comprehensive facility master plan (CFMP) and a comprehensive capital improvement plan. While the district has had some planning documents in place, they are not sufficient to address future facility needs tied to enrollment changes, a systematic approach to capital improvements, plans for current facility use, changes needed to facilities that will better support and enhance student learning or changes needed to address educational program needs. The development of these plans will require comprehensive financing plan development. Funding in the Capital Projects fund has been limited for many years with current year revenue from a five-cent levy, M&M taxes and a transfer from the General (Incidental) Fund. Discretionary revenue which can be recorded in the Capital Projects Fund is limited by state law and DESE regulation. The Board of Education will need to develop a long-range financing plan tied to the CFMP and the long range capital improvement plan which could include funding from general obligation bonds and/or lease purchase revenue to supplement the existing sources of revenue. C. Jones, Lee's Summit West High School 89

96 PROPRIETARY FUNDS Proprietary funds are used to account for the District s ongoing activities similar to businesses found in the private sector. These funds are considered self-supporting in that the services rendered by the program are generally financed through user charges or on a cost reimbursement basis. The Lee s Summit R-VII School District categories two programs, accounted for in separate funds, as proprietary. These two programs are Nutrition Services and Before and After School Services (BASS). NUTRITION SERVICES FUND The Nutrition Services department s mission to provide food service program meal opportunities that meet the nutritional needs of students in grades PreK 12 at an affordable cost, encouraging healthy eating habits, personal fitness and proper dietary choices. The revenue and expenses for the Nutrition Services department are provided in the chart below. Actual NUTRITION SERVICES FUND Actual Actual Budget Proposed Projected Projected Projected Local Food Sales $4,624,348 $4,632,068 $4,750,074 $4,734,470 $5,140,500 $5,173,222 $5,206,658 $5,240,310 Other Miscellaneous $1,436 $4,263 $10,486 $9,190 $10,000 $10,500 $10,500 $10,500 State Breakfast/Lunch $68,261 $53,738 $54,457 $86,583 $97,376 $97,493 $97,611 $97,729 Federal Breakfast Program $407,033 $451,636 $445,020 $586,485 $585,120 $605,872 $627,437 $649,769 Lunch Program $1,723,311 $1,727,319 $1,759,640 $1,846,743 $1,852,880 $1,918,598 $1,986,887 $2,057,603 Other $2,632 $2,707 $21,142 $3,211 $3,200 $3,500 $3,500 $3,500 TOTAL REVENUES $6,827,020 $6,871,732 $7,040,820 $7,266,683 $7,689,076 $7,809,185 $7,932,593 $8,059,411 EXPENDITURES Nutrition Services Employee Salaries & Benef $3,588,533 $3,839,696 $3,917,978 $3,974,747 $4,130,496 $4,192,453 $4,255,340 $4,319,170 Purchased Services $89,384 $134,476 $118,716 $95,894 $88,700 $90,000 $91,314 $92,647 Materials & Supplies $2,972,196 $3,080,732 $3,051,366 $2,985,325 $3,357,000 $3,404,669 $3,451,994 $3,503,774 Equipment $218,464 $57,192 $63,940 $117,290 $75,000 $76,050 $77,107 $78,264 TOTAL EXPENDITURES $6,868,576 $7,112,095 $7,152,000 $7,173,256 $7,651,196 $7,763,173 $7,875,756 $7,993,855 FUND BALANCE Beginning Fund Balance $2,153,863 $2,112,307 $1,871,943 $1,760,763 $1,854,189 $1,892,069 $1,938,082 $1,994,919 Excess Revenue/Expense -$41,556 -$240,364 -$111,180 $93,426 $37,880 $46,012 $56,837 $65,556 ENDING FUND BALANCE $2,112,307 $1,871,943 $1,760,763 $1,854,189 $1,892,069 $1,938,082 $1,994,919 $2,060,474 The fund balance in the Nutrition Services fund will increase slightly from FY17 to FY18 due to an increase in revenue, tied to an increase in meal prices for FY18. 90

97 BEFORE AND AFTER SCHOOL SERVICES (BASS) FUND The mission of Before and After School Services (BASS) is to provide support to families by caring for their children during out of school time in a safe, nurturing, fun and educational environment. Established in 1996, BASS, previously only known as Kids Country, is comprised of three fee based programs and one no-cost program serving children ages 3 to 21. Programs begin at 6:30 am and end at 6:00 pm. Child care is also provided on early release, snow days, and most nonschool days. Quality staff supervise and facilitate activities and curriculum while building positive relationships with students and families. Summer programming offers age-appropriate field trips, children s choice of activities, and stimulating and educational curriculum. The fund balance in the BASS fund will decrease slightly from FY17 to FY18 due to flat revenue but with increasing expenses, primarily for salaries and benefits for FY18. 91

98 FIDUCIARY FUNDS Fiduciary funds are used to account for assets held by the school district in a trustee capacity. Within the Lee s Summit R-VII School District, student activities are classified as fiduciary funds and accounted for in a separate Student Activity fund. Local Actual Actual Actual Budget Proposed Projected Projected Projected Other Miscellaneous $4,205,097 $4,406,687 $4,767,601 $4,701,249 $4,700,000 $4,725,000 $4,748,719 $4,796,206 TOTAL REVENUES $4,205,097 $4,406,687 $4,767,601 $4,701,249 $4,700,000 $4,725,000 $4,748,719 $4,796,206 Student Activity STUDENT ACTIVITY FUND Employee Salaries & Benefit $ 199,455 $ 288,807 $ 370,048 $ 323,468 $ 328,320 $ 330,982 $ 335,583 $ 340,616 Purchased Services $ 1,535,607 $ 1,700,033 $ 1,778,428 $ 1,739,666 $ 1,740,000 $ 1,750,000 $ 1,764,725 $ 1,775,000 Materials & Supplies $ 2,435,480 $ 2,442,323 $ 2,512,283 $ 2,604,211 $ 2,581,000 $ 2,599,000 $ 2,601,920 $ 2,641,234 Equipment $ 87,223 $ 70,781 $ 65,701 $ 103,819 $ 100,000 $ 100,000 $ 100,000 $ 100,000 TOTAL EXPENDITURES $4,257,765 $4,501,944 $4,726,460 $4,771,165 $4,749,320 $4,779,982 $4,802,228 $4,856,850 FUND BALANCE Beginning Fund Balance $2,077,803 $2,025,134 $1,929,877 $1,971,019 $1,901,103 $1,851,783 $1,796,801 $1,743,292 Excess Revenue/Expense -$52,669 -$95,257 $41,141 -$69,915 -$49,320 -$54,982 -$53,509 -$60,644 ENDING FUND BALANCE $2,025,134 $1,929,877 $1,971,019 $1,901,103 $1,851,783 $1,796,801 $1,743,292 $1,682,648 The fund balance in the activity fund is projected on a decreasing trend as expenses are outpacing the growth in revenue. This fund is funded from revenue generated from student sources, with increased efforts in fundraising, donations and athletic event gate receipts. 92

99 FUND BALANCE/FUND BALANCE FORECAST Fund balance has been a continual area of focus for the Board of Education and administrative team. Using an analysis of cash flow, the Board of Education has set a minimum fund balance at 15% of operating expenditures. A balance of 15% or more allows the District to meet its expenditure obligations during the months of the fiscal year in which minimal revenue is received. The cash flow chart below represents the typical pattern of revenues and expenditures in Lee s Summit R-7. Past significant budget reductions and cost containment strategies have provided a positive impact on the operating fund balance beginning in the school year. Economic factors, as well as conservative expenditure patterns have provided the opportunity for the District to address targeted salary and benefit improvements to recruit and retain staff providing a planned reduction in the percent of fund balance. The fund balance graph below shows the changes in fund balance and identifies the minimum 15 percent fund balance. The fund balance, while projected to decline slightly in terms of percent, remains well above the minimum fund balance required. *Budgeted 93

100 INFORMATIONAL SECTION Budgets are financial planning and decision-making documents. The Financial Section is the heart of the budget document. The budget financial schedules present the adopted budget compared to the past actual revenues and expenditures. Brandon H., Lee's Summit High School Daniella A., Lee's Summit High School Caitlin D., Lee s Summit High School 94

101 ASSESSED VALUATION The Lee s Summit R-7 School District encompasses areas both in Cass and Jackson Counties in Missouri. Annually, the district receives revised assessment numbers in September, after Board of Equalization adjustments. In accordance with state law, the District conducts a community tax rate public hearing and the Board of Education approves the tax rate to be levied. Per state law, the District s tax levy is rolled-up or rolled-back based on increases or decreases in certified assessed valuation. All taxable real and personal property is to be assessed annually by the County Assessor and re-assessed in odd-numbered years. Assessed value to market value is established by Missouri law at the following values: Agriculture 12%, Residential 19%, Commercial 32%, Personal Property 33 1/3%. Tax bills to property owners are calculated by taking the market value multiplied by the classification percentage to determine the assessed value and multiplying it by the levy rate per $100 of assessed value. Unpaid taxes after January 1 are considered delinquent. PROPERTY TAX RATE CALCULATION The tax rates by fund, calculated pursuant to state law and regulation, are shown in the table below. Incidental (General) Special Revenue (Teacher's) Debt Service Capital Projects Total * $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ *Estimated TAX RATE BY FUND 95

102 The following table and graph includes the total assessed and market values of property with the applicable yearly percent change and the ratio or market to assessed value. For fiscal years FY19 to FY21, the assessed value projected growth is one percent in non-reassessment (even-numbered) years and three percent in reassessment (odd-numbered) years. ASSESSED VALUATION/MARKET VALUE HISTORY OF TAXABLE PROPERTIES Year Assessed Valuation Percent Change Market Value Ratio * $2,041,276, % $9,328,273, % * $2,021,065, % $9,235,914, % * $1,962,199, % $8,966,906, % * $1,942,772, % $8,878,125, % $1,828,705, % $8,352,865, % $1,771,219, % $8,064,532, % $1,670,461, % $7,661,219, % $1,682,183, % $7,665,751, % *Estimated 96

103 The average assessed valuation per pupil for the R-7 District, based on an assessment of $1,942,772,167 and a budgeted enrollment of 18,157 is $106,998 for fiscal year FY18. This compares to $102,008 assessed valuation per pupil for FY17. The assessed value per pupil has shown an overall increase each year since The chart below provides the assessed value per ADA for comparison school districts and the state average for the school year (the latest data available at the time of budget preparation. 97

104 PROPERTY TAX MARKET VALUE ESTIMATIONS The actual and projected assessed values are provided in the table below by type of assessed value, using the statutorily mandated assessment rate. Residential Real Estate Assessed Valuation Assessment Rate Year Market Value * $1,391,854, % $7,325,548, * $1,378,073, % $7,253,018, * $1,337,935, % $7,041,765, * $1,324,688, % $6,972,045, $1,246,100, % $6,558,425, $1,225,817, % $6,451,668, $1,151,245, % $6,059,185, $1,137,678, % $5,987,779,979 Agricultural/Horticultural Real Estate Year Assessed Valuation Assessment Rate Market Value * $3,206, % $26,718, * $3,174, % $26,454, * $3,082, % $25,683, * $3,051, % $25,429, $2,855, % $23,799, $3,092, % $25,770, $2,999, % $24,995, $3,024, % $25,203,158 Year Assessed Valuation 98 Assessment Rate Market Value * $298,022, % $931,321, * $295,072, % $922,100, * $286,477, % $895,243, * $283,641, % $886,379, $250,376, % $782,427, $234,013, % $731,293, $226,404, % $707,514, $225,837, % $705,740,909 *Estimated Utility/Industrial Real Estate

105 PROPERTY TAX MARKET VALUE ESTIMATIONS Year IMPACT OF DISTRICT TAX RATE ON TAXPAYERS Market Value of Property Assessed Valuation Assessed Value* Assessment Rate Tax Levy Rate Market Value * $348,193, % $1,044,683, * $344,745, % $1,034,340, * $334,704, % $1,004,213, * $331,390, % $994,271, $329,371, % $988,213, $285,238, % $855,800, $289,812, % $869,524, $315,644, % $947,027,303 *Estimated Personal Property Annual Property Tax Due Cumulative Change from FY07 Percent Change Year * $100,000 $19,000 $ $1, ($12.79) -1.14% * $100,000 $19,000 $ $1, ($15.52) -1.39% * $100,000 $19,000 $ $1, ($2.98) -0.27% * $100,000 $19,000 $ $1, ($5.72) -0.51% $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % $100,000 $19,000 $ $1, $ % 99

106 PROPERTY TAX LEVY AND COLLECTIONS Year Total Levy Assessed Valuation Total Revenue from Taxes Revenue Collected** Tax Collection Rate * $ $2,041,276,544 $118,896,194 $113,545, % * $ $2,021,065,885 $117,427,970 $112,143, % * $ $1,962,199,889 $115,302,790 $110,114, % * $ $1,942,772,167 $113,881,419 $108,756, % $ $1,828,705,105 $109,643,672 $107,586, % $ $1,771,219,825 $105,941,971 $103,543, % $ $1,670,461,658 $102,218,890 $101,660, % $ $1,682,183,866 $101,985,761 $100,157, % *Estimated for budget purposes. **Collections include the total of current and delinquent property taxes collected less the fees retained by the County Collectors. Actual collections used for school years through Estimated collections for through ALTERNATIVE TAX COLLECTIONS A one percent state-wide sales tax voted as Proposition C is paid by the State of Missouri based on the prior year weighted ADA. While the funds are paid by the state, the revenue is considered a local revenue. The following table provides the amount of Prop C revenue. Actual Actual PROPOSITION C SALES TAX Actual Budget Proposed Projected Projected Projected $14,831,594 $15,452,501 $15,947,083 $16,680,976 $17,082,727 $17,327,655 $17,766,910 $18,210,

107 ENROLLMENT The Lee s Summit R-7 School District Staff, along with demographer-applied Economics, annually projects current and future enrollment figures using as a baseline the last Wednesday in September enrollment count submitted to the Missouri Department of Elementary and Secondary Education. Included in the process are cohort growth and construction patterns for the school district. This enrollment estimating process, including local city and county officials, the development community, site leadership and R-7 staff allows for annual long-range financial planning, accurate budget estimates, appropriate staffing and prediction of necessary future Comprehensive Facility Master Plan building and capital needs. APPLIED ECONOMICS ENROLLMENT PROJECTION SCOPE Enrollment Trends Grade and level characteristics Geographic distribution Special programs Demographic Characteristics Population characteristics Household type and age structure Housing supply and occupancy rates Residential Development Impacts Current development activity Housing market conditions Future development potential Enrollment Projections District Sub-district Planning Support Facilities Attendance Areas Programs 101

108 APPLIED ECONOMICS ENROLLMENT PROJECTION PROCESS August September Perform field research on development activity and trends including a windshield survey of active developments, and meetings with land owners, developers and local real estate professionals Meet with representatives of the planning departments from each of the six jurisdictions served by LSR-7 to obtain information on active and near-term future developments / new jobs Obtain housing market information and near-term forecasts from Landmarketing, along with birth rate, housing vacancy rate and permitting activity from various public sources Obtain current year student information from the District, and incorporate it and the information from above into the district and subdistrict enrollment models Develop projections of housing absorption for the District and then allocate that absorption to active and future development projects Develop district-level projections of housing units, households, population and school-age population and enrollment by grade October November Develop sub-district projections of housing units, student generation rates and enrollment by planning area Repeat above to adjust and calibrate the models, prepare and review projections and perform quality control checks Transmit draft numerical results to District staff for review and then prepare and transmit the draft report Revise projections, prepare the final report and perform add-on tasks as requested 102

109 The district has seen an increase in student enrollment over the past ten years. The current year student enrollment is projected to increase by 230 students when compared to the school year. The official fiscal year budget enrollment is determined on the last Wednesday in September. Current enrollment projections for the next three years (FY19 through FY21) shows an average increase of 269 students per year. APPLIED ECONOMICS ENROLLMENT CONCLUSIONS Enrollment is likely to continue to grow over the next 10 years with most of the increase being in the upper grades until near the end of the projection period The aging of the existing population will likely offset much of the increase in the school-age population from new housing unless the level of construction increases Single family construction activity is increasing currently, but may remain constrained by the lack of affordable options whereas multifamily construction is likely to expand Current and future enrollment by school shows trends that modification of attendance areas and new facilities may be required as development continues and the school-age population shifts outward The District has great potential for future growth and is very well situated relative to emerging economic growth giving rise to the possibility of accelerated growth again in the future 103

110 ACTUAL/PROJECTED ENROLLMENT BY SCHOOL FY14 TO FY27 100% Actual Actual Actual Actual Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Proj. Program Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. Enroll. ELEM ENTARY SCHOOLS: Capacity Cedar Creek Greenwood Hawthorn Hill Hazel Grove Highland Park Lee's Summit Longview Farm Mason Meadow Lane Pleasant Lea Prairie View 1,151 1, Richardson Summit Pointe Sunset Valley Trailridge Underwood Westview Woodland Other TOTAL ELEMENTARY: 11,301 9,186 9,147 9,215 9,268 9,338 9,377 9,403 9,421 9,445 9,497 9,608 9,750 9,937 10, % 0.02% 0.74% 0.58% 0.76% 0.42% 0.28% 0.19% 0.25% 0.55% 1.17% 1.48% 1.92% 1.77% MIDDLE SCHOOLS: Bernard Campbell 1, ,047 1,073 1,078 1,114 1,119 1,093 1,079 1,074 Pleasant Lea 1, Summit Lakes 1, ,018 1,101 1,121 1,104 1,099 1,156 1,179 1,181 1,129 1,090 1,121 1,140 Other TOTAL MIDDLE SCHOOL: 3,366 2,791 2,758 2,742 2,857 2,944 2,976 3,076 3,157 3,211 3,257 3,199 3,137 3,143 3, % 1.36% -0.58% 4.19% 3.05% 1.09% 3.36% 2.63% 1.71% 1.43% -1.78% -1.94% 0.19% 0.70% HIGH SCHOOLS: Lee's Summit 2,166 1,799 1,794 1,778 1,794 1,699 1,746 1,758 1,783 1,862 1,846 1,919 1,931 1,956 1,970 Lee's Summit North 2,166 1,912 1,849 1,856 1,902 1,889 1,930 1,943 2,026 2,127 2,236 2,309 2,362 2,366 2,366 Lee's Summit West 2,285 1,812 1,898 1,991 2,080 2,118 2,215 2,321 2,406 2,444 2,497 2,504 2,571 2,551 2,518 Other TOTAL HIGH SCHOOL: 6,617 5,653 5,705 5,790 5,802 5,875 6,063 6,194 6,386 6,601 6,746 6,898 7,032 7,040 7, % 0.56% 1.49% 0.21% 1.26% 3.20% 2.16% 3.10% 3.37% 2.20% 2.25% 1.94% 0.11% -0.28% DISTRICT K-12 TOTAL 21,284 17,630 17,610 17,747 17,927 18,157 18,416 18,673 18,964 19,257 19,500 19,705 19,919 20,120 20,298 STUDENTS +/ GROWTH % 0.17% -0.02% 0.78% 1.01% 1.28% 1.43% 1.40% 1.56% 1.55% 1.26% 1.05% 1.09% 1.01% 0.88% 104

111 BUDGET ALLOCATIONS The Lee s Summit R-7 School District budget allocations are based on projected student enrollments using a per student allocation for various budget line items for school site locations. The budget allocation per student varies by grade level. The general and music equipment allocations incorporate grade level and age of facility to determine the yearly allocation. School building allocations may be revised using actual student enrollment following the official last Wednesday in September date. District department allocations remain consistent each year. Changes in department budget allocations are requested through the annual non-allocated budget request process. 105

112 SCHOOL BUDGET ALLOCATIONS Cedar Creek Greenwood Hazel Grove Hawthorn Hill Highland Park Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 6,571 $ 5,512 $ 6,508 $ 6,699 $ 6,941 Supplies Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 16,232 $ 13,616 $ 16,074 $ 16,547 $ 17,146 Technology $ 1,263 $ 1,060 $ 1,251 $ 1,288 $ 1,334 Miscellaneous $ 1,263 $ 1,060 $ 1,251 $ 1,288 $ 1,334 Middle School Implementation Repairs (No replacement, ONLY repair) $ 842 $ 706 $ 834 $ 858 $ 890 Printing (Outsourced, not paper) $ 1,053 $ 883 $ 1,042 $ 1,073 $ 1,112 Postage $ 840 $ 705 $ 832 $ 857 $ 888 Local Mileage (Principal $0.535 per mile $ 577 $ 484 $ 571 $ 588 $ 609 Student Travel $ - $ - $ - $ - $ - Dues Memberships (IB) $ - $ - $ - $ - $ - Field Trips (Admission) $ 421 $ 353 $ 417 $ 429 $ 445 Other Purchased Services $ - $ - $ - $ - $ - Media Services (Restricted in Elementary Only) Books Base $ 3,270 $ 3,270 $ 3,270 $ 3,270 $ 3,270 Books $ 7,159 $ 6,005 $ 7,089 $ 7,298 $ 7,562 Supplies Base $ 1,226 $ 1,226 $ 1,226 $ 1,226 $ 1,226 Media Base $ 1,635 $ 1,635 $ 1,635 $ 1,635 $ 1,635 New School (each of 1st 2 yrs) $ - Sub-Total Media Services Only: $ 13,291 $ 12,137 $ 13,221 $ 13,430 $ 13,694 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 1,558 $ 1,307 $ 1,543 $ 1,588 $ 1,646 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 2,271 $ 1,905 $ 2,249 $ 2,315 $ 2,399 Equipment Music Equipment (RESTRICTED) Equipment New/Replacement (Place in Fund 431) $ 8,760 $ 7,348 $ 8,675 $ 8,930 $ 9,253 Sub-Total Equipment: $ 8,760 $ 7,348 $ 8,675 $ 8,930 $ 9,253 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 54,942 $ 47,076 $ 54,468 $ 55,890 $ 57,691 Per Student $ $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 4,820 $ 4,044 $ 4,774 $ 4,914 $ 5,092 Revised Grand Total for 600 Budget Manager: $ 59,763 $ 51,120 $ 59,242 $ 60,804 $ 62,783 Elementary Music Equipment Allocation (District-wide Account) $4,341 $3,642 $4,299 $4,426 $4,586 5% Withholding for Technology $ 2,988 $ 2,556 $ 2,962 $ 3,040 $ 3,139 Total Budget Allocation for Enrollment FY18 $ 56,774 $ 48,564 $ 56,280 $ 57,764 $ 59,

113 SCHOOL BUDGET ALLOCATIONS Lee's Summit Longview Farm Mason Meadow Lane Pleasant Lea Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 3,764 $ 7,618 $ 6,150 $ 7,031 $ 7,273 Supplies Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 9,298 $ 18,817 $ 15,192 $ 17,367 $ 17,966 Technology $ 724 $ 1,464 $ 1,182 $ 1,351 $ 1,398 Miscellaneous $ 724 $ 1,464 $ 1,182 $ 1,351 $ 1,398 Middle School Implementation Repairs (No replacement, ONLY repair) $ 482 $ 976 $ 788 $ 901 $ 932 Printing (Outsourced, not paper) $ 603 $ 1,220 $ 985 $ 1,126 $ 1,165 Postage $ 481 $ 974 $ 787 $ 899 $ 930 Local Mileage (Principal $0.535 per mile $ 330 $ 669 $ 540 $ 617 $ 638 Student Travel $ - $ - $ - $ - $ - Dues Memberships (IB) $ - $ - $ - $ - $ - Field Trips (Admission) $ 241 $ 488 $ 394 $ 450 $ 466 Other Purchased Services $ - $ - $ - $ - $ - Media Services (Restricted in Elementary Only) Books Base $ 3,270 $ 3,270 $ 3,270 $ 3,270 $ 3,270 Books $ 4,101 $ 8,298 $ 6,700 $ 7,659 $ 7,923 Supplies Base $ 1,226 $ 1,226 $ 1,226 $ 1,226 $ 1,226 Media Base $ 1,635 $ 1,635 $ 1,635 $ 1,635 $ 1,635 New School (each of 1st 2 yrs) Sub-Total Media Services Only: $ 10,233 $ 14,430 $ 12,832 $ 13,791 $ 14,055 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 892 $ 1,806 $ 1,458 $ 1,667 $ 1,724 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 1,301 $ 2,633 $ 2,126 $ 2,430 $ 2,514 Equipment Music Equipment (RESTRICTED) Equipment New/Replacement (Place in Fund 431) $ 5,018 $ 6,406 $ 8,199 $ 9,373 $ 9,696 Sub-Total Equipment: $ 5,018 $ 6,406 $ 8,199 $ 9,373 $ 9,696 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 34,091 $ 58,965 $ 51,815 $ 58,354 $ 60,155 Per Student $ $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 2,761 $ 5,588 $ 4,512 $ 5,157 $ 5,335 Revised Grand Total for 600 Budget Manager: $ 36,852 $ 64,553 $ 56,326 $ 63,511 $ 65,490 Elementary Music Equipment Allocation (District-wide Account) $2,487 $2,012 $4,063 $4,645 $4,805 5% Withholding for Technology $ 1,843 $ 3,228 $ 2,816 $ 3,176 $ 3,274 Total Budget Allocation for Enrollment FY18 $ 35,010 $ 61,325 $ 53,510 $ 60,335 $ 62,

114 SCHOOL BUDGET ALLOCATIONS Summit Sunset Prairie View Richardson Pointe Valley Trailridge Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 11,382 $ 8,001 $ 7,516 $ 5,997 $ 5,959 Supplies Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 28,114 $ 19,762 $ 18,564 $ 14,814 $ 14,719 Technology $ 2,188 $ 1,538 $ 1,445 $ 1,153 $ 1,145 Miscellaneous $ 2,188 $ 1,538 $ 1,445 $ 1,153 $ 1,145 Middle School Implementation Repairs (No replacement, ONLY repair) $ 1,459 $ 1,025 $ 963 $ 769 $ 764 Printing (Outsourced, not paper) $ 1,823 $ 1,282 $ 1,204 $ 961 $ 955 Postage $ 1,456 $ 1,023 $ 961 $ 767 $ 762 Local Mileage (Principal $0.535 per mile $ 999 $ 702 $ 660 $ 526 $ 523 Student Travel $ - $ - $ - $ - $ - Dues Memberships (IB) $ - $ - $ - $ - $ - Field Trips (Admission) $ 729 $ 513 $ 482 $ 384 $ 382 Other Purchased Services $ - $ - $ - $ - $ - Media Services (Restricted in Elementary Only) Books Base $ 4,906 $ 3,270 $ 3,270 $ 3,270 $ 3,270 Books $ 12,399 $ 8,715 $ 8,187 $ 6,533 $ 6,491 Supplies Base $ 1,840 $ 1,226 $ 1,226 $ 1,226 $ 1,226 Media Base $ 2,453 $ 1,635 $ 1,635 $ 1,635 $ 1,635 New School (each of 1st 2 yrs) Sub-Total Media Services Only: $ 21,597 $ 14,847 $ 14,319 $ 12,665 $ 12,623 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 2,698 $ 1,897 $ 1,782 $ 1,422 $ 1,413 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 3,934 $ 2,765 $ 2,597 $ 2,073 $ 2,059 Equipment Music Equipment (RESTRICTED) Equipment New/Replacement (Place in Fund 431) $ 15,173 $ 10,665 $ 6,320 $ 5,043 $ 7,944 Sub-Total Equipment: $ 15,173 $ 10,665 $ 6,320 $ 5,043 $ 7,944 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 93,740 $ 65,558 $ 58,258 $ 47,727 $ 50,393 Per Student $ $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 8,349 $ 5,869 $ 5,513 $ 4,399 $ 4,371 Revised Grand Total for 600 Budget Manager: $ 102,089 $ 71,427 $ 63,771 $ 52,126 $ 54,764 Elementary Music Equipment Allocation (District-wide Account) $7,520 $5,286 $1,985 $1,584 $3,937 5% Withholding for Technology $ 5,104 $ 3,571 $ 3,189 $ 2,606 $ 2,738 Total Budget Allocation for Enrollment FY18 $ 96,985 $ 67,856 $ 60,582 $ 49,520 $ 52,

115 SCHOOL BUDGET ALLOCATIONS Elem Underwood Westview Woodland Total Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 6,252 $ 4,989 $ 4,785 $ 118,948 Supplies $ - Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 15,444 $ 12,324 $ 11,819 $ 293,815 Technology $ 1,202 $ 959 $ 920 $ 22,865 Miscellaneous $ 1,202 $ 959 $ 920 $ 22,865 Middle School Implementation $ - Repairs (No replacement, ONLY repair) $ 801 $ 639 $ 613 $ 15,242 Printing (Outsourced, not paper) $ 1,002 $ 799 $ 767 $ 19,055 Postage $ 800 $ 638 $ 612 $ 15,212 Local Mileage (Principal $0.535 per mile $ 549 $ 438 $ 420 $ 10,440 Student Travel $ - $ - $ - $ - Dues Memberships (IB) $ - $ - $ - $ - Field Trips (Admission) $ 401 $ 320 $ 307 $ 7,622 Other Purchased Services $ - $ - $ - $ - Media Services (Restricted in Elementary Only) Books Base $ 3,270 $ 3,270 $ 3,270 $ 60,502 Books $ 6,811 $ 5,435 $ 5,213 $ 129,578 Supplies Base $ 1,226 $ 1,226 $ 1,226 $ 22,688 Media Base $ 1,635 $ 1,635 $ 1,635 $ 30,251 New School (each of 1st 2 yrs) $ - $ - Sub-Total Media Services Only: $ 12,943 $ 11,567 $ 11,345 $ 243,020 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 1,482 $ 1,183 $ 1,134 $ 28,200 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 2,161 $ 1,724 $ 1,654 $ 41,110 Equipment Music Equipment (RESTRICTED) Equipment New/Replacement (Place in Fund 431) $ 8,335 $ 6,651 $ 6,379 $ 148,168 Sub-Total Equipment: $ 8,335 $ 6,651 $ 6,379 $ 148,168 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 52,574 $ 43,190 $ 41,675 $ 986,562 Per Student $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 4,586 $ 3,660 $ 3,510 $ 87,254 Revised Grand Total for 600 Budget Manager: $ 57,160 $ 46,850 $ 45,185 $ 1,073,815 Elementary Music Equipment Allocation (District-wide Account) $4,131 $3,296 $3,161 $70,205 5% Withholding for Technology $ 2,858 $ 2,342 $ 2,259 $ 53,691 Total Budget Allocation for Enrollment FY18 $ 54,302 $ 44,507 $ 42,926 $ 1,020,

116 SCHOOL BUDGET ALLOCATIONS Middle School Campbell Pleasant Lea Summit Lakes Total Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 39,881 $ 40,550 $ 49,952 $ 130,383 Supplies Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 57,808 $ 58,777 $ 72,406 $ 188,991 Technology $ 2,195 $ 2,232 $ 2,750 $ 7,177 Miscellaneous $ 2,927 $ 2,976 $ 3,666 $ 9,569 Middle School Implementation $ 10,400 $ 10,400 $ 10,400 $ 31,200 Repairs (No replacement, ONLY repair) $ 2,195 $ 2,232 $ 2,750 $ 7,177 Printing (Outsourced, not paper) $ 9,659 $ 9,821 $ 12,098 $ 31,578 Postage $ 3,659 $ 3,720 $ 4,583 $ 11,962 Local Mileage (Principal $0.535 per mile $ 1,924 $ 1,957 $ 2,410 $ 6,291 Student Travel $ - $ - $ - $ - Dues Memberships (IB) $ - $ - $ - $ - Field Trips (Admission) $ - $ - $ - $ - Other Purchased Services $ 1,680 $ 1,680 $ 1,680 $ 5,040 Media Services (Restricted in Elementary Only) Books Base $ 7,767 $ 7,767 $ 7,767 $ 23,302 Books $ 15,367 $ 15,625 $ 19,248 $ 50,240 Supplies Base $ 2,862 $ 2,862 $ 2,862 $ 8,585 Media Base $ 4,497 $ 4,497 $ 4,497 $ 13,490 New School (each of 1st 2 yrs) Sub-Total Media Services Only: $ 30,493 $ 30,751 $ 34,374 $ 95,617 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 2,927 $ 2,976 $ 3,666 $ 9,569 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 10,874 $ 11,057 $ 13,620 $ 35,551 Equipment Music Equipment (RESTRICTED) $ 9,057 $ 9,209 $ 11,345 $ 29,611 Equipment New/Replacement (Place in Fund 431) $ 18,562 $ 18,873 $ 23,250 $ 60,685 Sub-Total Equipment: $ 27,620 $ 28,083 $ 34,594 $ 90,296 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 204,241 $ 207,211 $ 248,949 $ 660,401 Per Student $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 10,196 $ 10,367 $ 12,770 $ 33,333 Revised Grand Total for 600 Budget Manager: $ 214,437 $ 217,578 $ 261,719 $ 693,734 Elementary Music Equipment Allocation (District-wide Account) 5% Withholding for Technology $ 10,722 $ 10,879 $ 13,086 $ 34,687 Total Budget Allocation for Enrollment FY18 $ 203,715 $ 206,699 $ 248,633 $ 659,

117 SCHOOL BUDGET ALLOCATIONS Summit Summit Senior High Ridge Acad. Tech. Acad. LSHS LSNHS LSWHS Total Location (Building Number): Enrollment: Textbooks Textbooks (Unrestricted) $ 5,653 $ 10,000 $ 104,210 $ 115,864 $ 130,439 $ 366,166 Supplies Instructional (includes Art, Music, PE, Rem Reading, Paper) $ 4,975 $ 90,472 $ 136,008 $ 150,145 $ 167,183 $ 548,783 Technology $ 4,167 $ 4,633 $ 5,195 $ 13,995 Miscellaneous $ 8,483 $ 8,033 $ 9,724 $ 10,811 $ 12,122 $ 49,173 Middle School Implementation Repairs (No replacement, ONLY repair) $ 2,019 $ 900 $ 5,556 $ 6,178 $ 6,927 $ 21,580 Printing (Outsourced, not paper) $ 303 $ 29,796 $ 33,128 $ 37,144 $ 100,371 Postage $ 505 $ 1,200 $ 13,891 $ 15,444 $ 17,317 $ 48,357 Local Mileage (Principal $0.535 per mile $ 521 $ 2,063 $ 7,238 $ 8,047 $ 9,023 $ 26,892 Student Travel $ 1,389 $ 1,544 $ 1,732 $ 4,665 Dues Memberships (IB) $ 6,946 $ 7,722 $ 8,658 $ 23,326 Field Trips (Admission) $ - $ - $ - $ - Other Purchased Services $ 43,783 $ 22,998 $ 1,389 $ 1,544 $ 1,732 $ 71,446 Media Services (Restricted in Elementary Only) Books Base $ 3,000 $ 16,352 $ 16,352 $ 16,352 $ 52,056 Books $ 33,334 $ 37,062 $ 41,555 $ 111,952 Supplies Base $ 8,176 $ 8,176 $ 8,176 $ 24,528 Media Base $ 8,994 $ 8,994 $ 8,994 $ 26,981 New School (each of 1st 2 yrs) Sub-Total Media Services Only: $ 3,000 $ 66,856 $ 70,584 $ 75,077 $ 215,517 Staff Development (To include inservice/materials, registrations, travel, substitutes. Sub days $136) $ 1,514 $ 4,460 $ 20,142 $ 22,394 $ 25,109 $ 73,619 Supplemental Pay (Curriculum, School Improvement, Supervision) $ 10,384 $ 2,640 $ 43,146 $ 47,971 $ 53,787 $ 157,928 Equipment Music Equipment (RESTRICTED) $ 20,048 $ 22,290 $ 17,495 $ 59,833 Equipment New/Replacement (Place in Fund 431) $ 1,643 $ 38,771 $ 43,107 $ 29,737 $ 113,258 Sub-Total Equipment: $ 1,643 $ - $ 58,819 $ 65,397 $ 47,231 $ 173,091 OVERALL ALLOCATION FORMULA: GRAND TOTALS: $ 82,781 $ 142,766 $ 509,277 $ 561,406 $ 598,677 $ 1,894,907 Per Student $ $ $ $ Additions to Budget: (RESTRICTED TO TRANSPORTATION COSTS) Non-athletic Student Travel $ 5,655 $ 4,234 $ 43,929 $ 48,842 $ 54,763 $ 157,423 Revised Grand Total for 600 Budget Manager: $ 88,436 $ 147,000 $ 553,207 $ 610,248 $ 653,440 $ 2,052,330 Elementary Music Equipment Allocation (District-wide Account) 5% Withholding for Technology $ - $ 27,660 $ 30,512 $ 32,672 $ 90,845 Total Budget Allocation for Enrollment FY18 $ 88,436 $ 147,000 $ 525,546 $ 579,736 $ 620,768 $ 1,961,

118 EQUIPMENT BUDGET ALLOCATIONS New/Replace/ Replacement New/Replace/Repair Furniture/Equipment Music Building Repair/Furn of Music Building Age Student Age Equipment** Equipment Index: Weight Class Enroll Class Allocation Allocation* Weight Class Elem Middle Senior Summit Ridge Academy $ 1,643 1 $ 8.63 $ $ Project Lead The Way $ 81,718 2 $ $ $ Parents As Teachers $ 1,634 3 $ $ $ Early Childhood Center $ 4,904 District-Wide (Elem Strings/Instrum/ Band and MS Strolling Strings) $ 11,139 Elementary Replacement of Music Equipment Cedar Creek $ 8,760 $ 4,341 Index: Weight Greenwood $ 7,348 $ 3, Hazel Grove $ 8,675 $ 4,299 Weight Class Elem Middle Senior Hawthorn Hill $ 8,930 $ 4, $ 1.69 $ 2.02 $ 2.36 Highland Park $ 9,253 $ 4, $ 3.37 $ 4.05 $ 4.72 Lee's Summit $ 5,018 $ 2, $ 8.43 $ $ 8.26 Longview Farm Elementary $ 6,406 $ 2, $ Mason $ 8,199 $ 4,063 Meadow Lane $ 9,373 $ 4,645 Pleasant Lea $ 9,696 $ 4,805 Building Age Class Definition-Equipment Prairie View $ 15,173 $ 7,520 Class Years Open Richardson $ 10,665 $ 5, Summit Pointe $ 6,320 $ 1, Sunset Valley $ 5,043 $ 1, or More Trailridge $ 7,944 $ 3,937 Underwood $ 8,335 $ 4,131 Westview $ 6,651 $ 3,296 Woodland $ 6,379 $ 3,161 Building Age Class Definition for Music Sub-total 9,322 $ 148,168 $ 70,205 Elem/MS HS Class Years Open Yrs Open Middle School B. Campbell $ 18,562 $ 9, Pleasant Lea $ 18,873 $ 9, or More Summit Lakes 3 1,121 3 $ 23,250 $ 11, or More Sub-total 2,926 $ 60,685 $ 29,611 Notes: *Music Allocations are restricted and have Senior High the following parameters: LSHS 4 1,699 3 $ 38,771 $ 20,048 1 If a building is less than 1 year old, no funding is LSNHS 4 1,889 3 $ 43,107 $ 22,290 allocated since funding w as part of building start-up. LSWHS 3 2,118 2 $ 29,737 $ 17,495 2 At the secondary level, minimum funding is $5,000 at Middle School and $10,000 at Sub-total 5,706 $ 111,615 $ 59,833 the Senior High level. 3 Repairs have a separate budget and approved Grand Total 18,071 $ 410,366 $ 170,789 by District Music Coordinator. **EQUIPMENT is defined as items costing more than $1,000 per unit. 112

119 BUDGET ALLOCATION SUMMARY Total Budget Resp. Budget Manager Allocation 101 Superintendent $ 91, Board of Education $ 180, Community Relations $ 66, Lee's Summit Educational Foundation $ 24, Partners In Education $ 39, Asst Supt/Instruction-Leadership $ 561, Asst Supt/Elementary $ 469, Special Services $ 414, Special Services Contracted Educational Services $ 965, Miller Park $ 27, Athletics $ 412, Media Services $ 177, Assistant Supt/Secondary $ 830, Music Coordinator $ 135, Testing $ 201, Curriculum $ 68, Asst Supt Human Resources $ 503, Professional Development $ 68, PDC 1% Funds $ 597, Technology $ 1,941, Data Processing $ 220, Instructional Technology $ 85, Career & Technical Education $ 841, Student Services $ 118, Student Services (Homebound) $ 115, Student Services (Homeless) $ 187, Associate Supt Business & Operations $ 1,863, Aquatic Center $ 196, Facilities $ 2,153, Finance $ 119, Transportation $ 1,521, Purchasing $ 890, Environmental/Risk Mgr $ 18, Parents As Teachers $ 45, Early Childhood $ 60, Hilltop $ 20,000 Restricted Funds $ 15,368,697 Department Budget Managers Subtotal $ 31,602,295 District-Wide Subtotal $ 254,855,225 Building-Level Budget Managers Subtotal $ 3,640,658 Grand Total Budget $ 290,098,

120 DEBT SERVICE Under Article VI, Section 26(b) of the Constitution of Missouri, the Lee s Summit R-7 School District may incur indebtedness for authorized school district purposes not to exceed 15 percent of the valuation of taxable tangible property in the District according to the last completed assessment. The legal principal debt limit is calculated at $250,569,249. With the amount of outstanding bond principal and the Debt Service fund balance, the district is under the debt capacity by $105,900,665 for DEBT SERVICE DETAIL FOR BOND PAYMENTS Series Principal Interest Total 2005/2015 $3,760,000 $1,734,200 $5,494, /2014 $2,750,000 $861,900 $3,611, /2015 $4,325,000 $2,292,375 $6,617, A $0 $510,204 $510, B $0 $353,297 $353, A $585,000 $48,200 $633, B $2,130,000 $337,600 $2,467, B $0 $600,000 $600, $0 $1,220,000 $1,220,000 Refunded Bonds $42,975,000 $0 $42,975,000 Fees $10,000 TOTAL $56,525,000 $7,957,775 $64,492,775 Various sections of Missouri law (Sections 8.231, , , ) provide authority for school districts to incur debt. The lease purchase principal and interest payments are funded through the Capital Projects fund DETAIL FOR LEASE PURCHASE PAYMENTS Type Principal Interest Total Copiers $314,353 $8,586 $322,939 DNR Loans $350,426 $47,640 $398,066 Electric Truck $10,002 $0 $10,002 Energy Loan $350,000 $104,428 $454,428 Energy Loan $625,000 $44,950 $669,950 Facility Site $61,069 $8,541 $69,610 Facility Vehicles $201,608 $18,088 $219,697 School Buses $1,803,291 $163,807 $1,967,097 Technology $1,069,236 $7,946 $1,077,181 Totals: $4,784,984 $403,986 $5,188,

121 For planning purposes, this table identifies the amount of general obligation principal and interest through the pay-off of the current outstanding bonds. Fiscal Year Series 2006/ 2014 Series 2008/2015 Debt Service (Principal & Interest) By Issue Series 2010A Series 2010B Series 2012A Series 2012B Series 2015B Series 2016 Total Debt Payments $3,611,900 $55,086,576 $510,204 $353,295 $633,200 $2,467,600 $600,000 $1,220,000 $64,482, $1,430,300 $12,983,700 $510,204 $353,295 $636,500 $2,460,700 $600,000 $1,220,000 $20,194, $2,116,800 $10,905,200 $510,204 $353,295 $624,500 $2,445,000 $600,000 $1,220,000 $18,774, $1,356,800 $11,060,200 $510,204 $353,295 $637,500 $2,422,800 $600,000 $1,220,000 $18,160, $3,426,700 $6,441,150 $510,204 $353,295 - $2,434,100 $600,000 $1,220,000 $14,985, $3,063,700 $6,543,750 $1,738,204 $353, $600,000 $1,220,000 $13,518, $3,639,200 $3,166,000 $1,718,804 $353, $600,000 $1,220,000 $10,697, $3,644,800 $3,284,250 $1,699,288 $353, $600,000 $1,220,000 $10,801, $3,640,000 $3,521,500 $1,676,170 $353, $600,000 $1,220,000 $11,010, $6,079,000 $5,117,272 $6,800, $16,820,000 $38,610,000 $73,426,568 Totals $25,930,200 $119,071,326 $14,500,758 $9,979,953 $2,531,700 $12,230,200 $22,220,000 $49,590,000 $256,054,137 For planning purposes, this table identifies the amount of lease principal and interest through the pay-off of the current lease purchases. These lease purchases are expensed from the Capital Projects Fund. Fiscal Year Copiers DNR Loans Electric Truck Energy Loan Energy Loan Facility Site Facility Vehicles School Buses Technology Total $322,939 $398,066 $10,002 $454,428 $669,950 $69,610 $219,697 $1,967,097 $1,077,181 $5,188, $322,938 $398,066 $10,476 $478,116 $649,606 $69,610 $219,697 $1,967,097 $0 $4,115, $0 $398,066 $10,963 $604,438 $235,075 $69,610 $219,697 $1,967,097 $3,504, $398,066 $11,490 $494,343 $204,650 $69,610 $219,697 $1,967,097 $3,364, $0 $12,034 $495,879 $370,949 $69,610 $219,697 $1,967,097 $3,135, $12,604 $0 $190,365 $69,790 $219,697 $0 $492, $13,198 $0 $0 $0 $13, $12,825 $12, $968 $

122 PROJECTS FUNDED BY GENERAL OBLIGATION BONDS FOR BONDS OUTSTANDING AS OF Issue Projects Amount Construction Stansberry Leadership Center $8,588,066 Construction Summit Pointe Elementary $13,892,434 High School Remodel/Renovation (at all three high school sites) $1,879,563 Middle School Remodel/Renovation (at all three middle school sites) $5,116,799 Non-allocated Budget Requests/Capital Projects Team $2,000,000 Purchasing/Distribution/Warehouse Addition $1,919,914 School bus purchase $500,000 Technology Equipment $2,000,000 $35,896, Issue Projects Amount Aquatic Center $10,851,960 Classroom Additions to Provide All-Day Kindergarten $10,987,421 Construction Sunset Valley Elementary $15,865,869 Elementary School Remodel/Renovation (Mason, Hazel Grove) $3,973,996 Great Beginnings Addition $566,738 Land Purchase for Future School Sites $1,374,436 Lee's Summit West High School Addition $6,459,254 Miller Park Renovation $2,372,362 Non-allocated Budget Requests/Capital Projects Team $2,350,000 Remodel classrooms at Lee's Summit North High School $1,041,246 School bus purchase $500,000 Technology Equipment $2,138,000 $58,481,

123 PROJECTS FUNDED BY GENERAL OBLIGATION BONDS FOR BONDS OUTSTANDING AS OF Issue Projects Amount Gymnasium Addition at Campbell Middle School $2,146,891 High School tennis courts/stadium turf $3,338,462 Middle School Site Land Acquisition $960,336 Non-allocated Budget Requests/Capital Projects Team $2,375,928 Performance Contract $250,000 Remodel at Pleasant Lea Middle School $274,675 Remodel/Addition at Lee's Summit High School $2,263,825 Renovation/Remodel at two sites (Hazel Grove/Great Beginnings) $1,680,964 Replace track surface at Middle School tracks $350,000 School bus purchase $800,000 Softball playing field at Lee's Summit North High School $888,572 Technology Equipment $2,000,000 $17,329, A Refunded 2003 Bonds & 2012B Refunded 2004 Bonds Projects Amount Addition Meadow Lane Elementary $2,148,301 Construction Longview Farms Elementary $9,554,812 Middle School Addition (Pleasant Lea and Summit Lakes) $4,972,503 Non-allocated Budget Requests/Capital Projects Team $1,600,000 Performance Contract $1,000,000 Remodel at High Schools (all three school sites) $417,774 School bus purchase $600,000 Technology Equipment $2,171,610 $22,465, B/2016 Issue District-wide Mechanical $3,200,000 District-wide Paving $1,500,000 District-wide Roofing $1,600,000 District-wide Site Improvements (28 locations) $12,935,000 Playground Safety Improvements (Surface and Equipment) $3,265,000 Summit Technology Center/Missouri Innovation Campus $17,500,000 $40,000,

124 HIGHLY QUALIFIED STAFF The Comprehensive School Improvement Plan (CSIP) includes a focus on an effort to attract and retain a highly qualified teaching and support staff. Regular meetings of certified staff are held in a collaborative environment to support the district Professional Learning Communities. Measurable indicators and effective action plans are used to meet district strategies, tasks and Professional Development program needs. The district, through TEAM Lee s Summit, the Superintendent s Leadership Team and Board of Education, remains committed to providing competitive salaries that are in the top third of Kansas City Metro area schools. The FY18 Budget includes base salary and benefit increases and an additional FTE (full time equivalent) staff positions. The District provides a comprehensive benefits package for all regular employees representing approximately 25% of the total compensation package. Retirement and employee insurance are the major expenses in the Benefit category, accounting for 89% of the total amount spent for benefits. The District is required to match contributions to the state retirement system for eligible employees, currently at the rate of 14.50% for Teacher Retirement and 6.86% for Non-Certificated staff. It is anticipated that the matching contribution percent required by the District will not increase for the next few budget years. The District has also taken a proactive approach to employee insurance in order to minimize the impact on budgeted expenses. The District opened an employee health center during the school year for employees, dependents and retirees covered on one of the District s health insurance plans. The health center also provides services for employees injured at work to reduce impact of workers compensation costs on the District budget. Key selected staff-related information is included in the table and graphs below, including the changes in full time equivalent employees, degree level of certified staff, district and state comparison of staff with Master-level and above degrees, district and state comparison of professional staff experience and district s retention percentages of certified and support staff. STAFFING HISTORY SUMMARY FTE (Full Time Equivalent) Employees Budget Budget Budget Budget Budget Administrators/District wide Managers Custodians & Maintenance Personnel Health Services Before & After School Services Nutrition Services Secretaries and Library Clerks Teacher Aides, Paraprofessionals, School Site Support Teacher Assistants, Parent Educators, Therapists Teachers, Counselors, Library Media Specialists Technology Transportation TOTAL FTE: 2, , , , ,

125 *Advanced degrees defined as Masters degree or higher. 119

126 120

127 ACT KEY STUDENT PERFORMANCE INDICATORS The ACT Program is a comprehensive system for collecting and reporting information about students planning to enter post-secondary education. The ACT is designed to assess the general educational development of high school students and readiness for success with college-level work. It consists of four major components: English, Math, Reading and Scientific Reasoning. Key findings include: For six straight year ( ), the average ACT composite score was 23.0 or higher. Lee s Summit students consistently scored higher than Missouri and national averages. The percent of graduates taking the ACT in Lee s Summit when compared to Missouri for years 2013 through 2016 is provided in the table below. Year Lee s Summit R-7 Missouri % 64.80% % 66.10% % 67.60% % 91.70% Beginning in the spring of 2015 all juniors in the state of Missouri were provided an ACT during the school day at no cost to students or districts. As a result, beginning in 2016 a new set of data is available inclusive of results from the all-junior census testing. 121

128 DROPOUT RATE According to a number of sources, students who drop out of high school are ineligible for 90 percent of jobs in the United States and a high school graduate s lifetime income is 50 to 100 percent higher than students who do not complete their high school education. In Lee s Summit R-VII, the dropout rate has been consistently lower than the Missouri average. For the school year, the dropout rate remained consistent at 1.2 percent. FREE/REDUCED PRICED MEALS The number of students eligible for free/reduced price meals is increasing in the Lee s Summit R-7 District and has increased by approximately 75 percent in the last ten years. Children eligible for free/reduced price meals generally come from low-income households. The District s building principals and instructional teams analyze this date on a regular basis to provide additional support and resources to students. 122

129 GRADUATION RATE The Lee s Summit graduation rate continues to be significantly above the state's graduation rate. In the school year, Lee s Summit had a graduation rate of 94.6 percent, compared to the Missouri average of 89.1 percent. STUDENT ATTENDANCE Student attendance is the District s basis for receipt of state aid and local Proposition C tax revenue. The District s attendance rate is significantly above the state average. In the school year, the attendance rate was 92.8 percent compared to the Missouri average of 89.7 percent. 123

130 MISSOURI ASSESSMENT PROGRAM (MAP) The Missouri Assessment Program (MAP) is mandated by the Outstanding Schools Act of As a result of this Act, the State Board of Education directed the Department of Elementary and Secondary Education (DESE) to identify the knowledge, skills and competencies that students should acquire and to assess student progress toward those academic standards. Students in grades 3-8 take the MAP Grade Level Assessments annually and are tested in the areas of English language arts and mathematics. Students in grades 5 and 8 also complete a science assessment. 124

131 SCHOOL YEAR CALENDAR 125