PARK HILL SCHOOL DISTRICT 7703 NW Barry Road Kansas City, Missouri (816) FINANCIAL SECTION

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1 FINANCIAL SECTION Budgets are financial planning and decision-making documents. The Financial Section is the heart of the school budget document. The budget financial schedules present the proposed and adopted budgets for the district compared with the results of past budget plans. These 3 students from Park Hill South High School earned recognition from the Missouri Interscholastic Press Association. PARK HILL SCHOOL DISTRICT 7703 NW Barry Road Kansas City, Missouri (816)

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3 BUDGET ASSUMPTIONS Annually, Park Hill School District administration prepares a budget forecast to facilitate building the financial planning and budget preparation process for the district and to attain the stated goals and objectives of the school district. The forecast is created using assumptions that reflect a conservative understanding of future indicators that impact the financial obligations of the district. Throughout the budget preparation process, assumptions are modified to reflect new information as it becomes available. In developing the budget, the district has identified the following issues and considerations as the budget assumptions that have significantly impacted the final product. KEY BUDGET FACTORS STUDENT ENROLLMENT Student enrollment is the primary variable in preparing future budget expenditures. In addition, student enrollment is also a factor in key revenue formulas, including the state s basic foundation formula, Prop C sales tax, school lunch receipts, and community services (i.e. Adventure Club). Official K-12 enrollment for is 11,461 (+1.5%) and reflects 34 consecutive years of enrollment growth in the school district. Enrollment projections are made for future years to anticipate student/staff related expenditures. Using projection models employed by the district, K-12 enrollment for is projected to be 11,647 (+1.6%). ASSESSED VALUATION & TOTAL TAX LEVY The Aggregate Assessed Valuation (AAV) for the Park Hill School District is $1,684,334,510. The Board of Education approved a total tax rate of $ per $100 of assessed valuation in August, The two values (AAV * Tax Rate / 100) will generate approximately $88 million in total revenue, of which $78 million is operating revenue. AAV grew by 7% from the prior year and has grown by an average of 2.8% per year for the last five years. Forecasts in budget preparation will estimate 2% growth in AAV and no change in total tax rate for through No change in the district s current tax levy is planned. BUDGET ASSUMPTIONS The Park Hill School District budget assumptions are organized into four budget dimensions: Fund Balances, Revenue, Expenditures, and Debt Service. 87

4 FUND BALANCES Annually, budgetary assumptions and planning begin with the end in mind maintaining appropriate levels within operating, capital and debt service fund balances demonstrate to the public the economic stability and sustainability of the school district. Target measures for these balances have been established by the Board of Education, the Comprehensive School Improvement Plan (CSIP), Financial Focus Area Collaborative Team (FACT), and by the State Auditor. Maintaining balances at these target ranges serve as guides in the development of future budgets. Fund balances for the purposes of local/state reporting are defined as the balances within each fund at the beginning of each fiscal year (July 1). Target ranges for operating and capital fund balances are often presented as the balance on July 1 as a percentage to prior year(s) expenditures in these funds. For example, if on July 1 there is a fund balance of $20 million in operating funds, and in the prior year the district reports $100 million in operating expenditures, the operating fund balance is presented as 20%. Restricted funds are not included within fund balance calculations. The current target ranges by fund are as follows: Fund Target Range Target Range Established Operating (Fund 1 + Fund 2) 18% to 22% of prior year operating expenditures Park Hill Board of Education Debt Service (Fund 3) The debt service fund is only allowed to have Missouri State Auditor the payments required for the next calendar year and the reasonable reserve of the following year's payment. Capital Fund (Fund 4) 65% to 85% of the average of prior 3-Year capital expenditures CSIP Financial FACT Team The Park Hill School District budgeting processes include the development of budgets for the budget year ( ) and projected budgets for three years beyond the budget year ( , , ) with these target ranges as the principal budgetary goal. Budgets for future years will be developed utilizing balances from prior years and any future balance that falls outside the above ranges will be made only as a part of a long-range financial strategic plan by the Board of Education. REVENUE The state of Missouri requires that school districts report revenues by source. Each source of revenue is organized within one of six major classes: Local, County, State, Federal, Non-Current and Amounts Received From Other LEAs. Park Hill School District does not have revenue received from other LEAs. The Park Hill School District Board of Education approved the budget with $152.8 million in operating revenue. Early budget assumptions project a 2.4% increase in operating revenue, or $3.7 million in operating revenue growth. Revenue By Source School Year Board Approved Budget Budget Assumption 5100-Revenues From Local Sources 103,911, ,270, Revenue From County Sources 4,035,920 4,123,575 88

5 5300-Revenue From State Sources 38,738,917 39,931, Revenue From Federal Sources 6,141,522 6,227, Non-Current Revenue 62,120 74,544 Grand Total 152,889, ,628,724 EXPENDITURES Expenditures are often expressed by expenditure object: Salaries, Employee Benefits, Purchased Services, Supplies & Materials, Capital Outlay and Debt. The table below reflects operating expenditures, so it excludes bond expenditures and debt. The Park Hill School District Board of Education approved the budget with $153.0 million in operating expenditures. Early budget assumptions project a 3.1% increase in operating expenditures, or $4.7 million in operating expenditure growth. Expenditure by Object School Year Board Approved Budget Budget Assumption 6100-Salaries 89,506,112 92,386, Employee Benefits 25,356,055 26,331, Purchased Services 18,735,637 19,314, Supplies and Materials 10,760,726 11,043, Capital Outlay 8,709,257 8,783,618 Grand Total 153,067, ,859,624 Specific projects that account for the increases in operating expenditures include the following by district focus area: HUMAN RESOURCES Staffing for Growth (K-12, SPED) Establish Student to Administrator Ratios 2.5% Salary Increase 3.0% Employee Benefit Package Increase 2.6% Overall Compensation Increase ACADEMIC SERVICES K-4 Technology LEAD Expansion Title I Preschool Mental Health Expansion (May Include Staff) District-wide ACT Testing 89

6 OPERATIONS Deploy Capital Improvement Plan Bond Projects o Continue Work on Middle School #4, Elementary #11, Support Services and Transportation Facility o Begin Work on High School/LEAD Studio o Deploy First Year of Capital Improvements to All Schools Student Transportation Increase o Enrollment Growth o Contracted Increase TECHNOLOGY Classroom A/V Equipment Upgrades Data Storage Hardware Equipment Elementary Large Space A/V Systems Elementary Classroom Projector Replacements Elementary Student Device Expansion School Building Cabling Projects Secondary Student Laptop Replacement SCHOOL IMPROVEMENT/STUDENT SERVICES Front Entry Security Radios at Schools Stadium Safety CSIP Support Social/Emotional Learning Assessment Safety and Security Staffing During District Events DEBT SERVICE The district carries existing debt from the sale of general obligation bonds in 2010 (refinance), 2011 (new bonds), 2012 (new bonds), 2013 (refinance), 2015 (refinance), 2016 (refinance), and 2017 (new bonds). The total debt payment for is set at $11.1 million. This payment fits into the overall plan of finance the district established prior to the approval of the 2017-No-Tax-Increase bond passed in April, No increase in the current debt service levy, $0.6107, is planned for

7 PRESENTATION OF FINANCIAL DATA ORGANIZATION OF DATA PYRAMID APPROACH In this section of the budget document, financial data will be presented using a pyramid approach. A pyramid approach presents financial data initially at a very high-level view followed by progressive levels of detail. The pyramid consists of four levels. Level One - Summary of All Funds Level One Summary of All Funds Level Two Summary Data For All Operating Funds Revenue by District Fund Expenditures by District Fund Revenue by Source Expenditures by Object Revenue by District Fund Expenditure by District Fund Revenue by Source Expenditures by Object Expenditures by Function Revenue by District Fund Expenditures by District Fund Revenue by Source - Sources specify the origin of the revenue, such as local, county, state, federal or other sources. Expenditures by Object An expenditure s object identifies the service or commodity obtained such as salaries, employee benefits, purchased services, supplies or capital projects. Level Two - Summary Data for All Operating Funds Level Three Summary Data for Individual Funds Level Four Information by Administrative Unit Revenue by Source Expenditures by Object Expenditures by Function Revenue by Source Expenditures by Object Revenue by District Fund (Operating Funds) Expenditures by District Fund (Operating Funds) Revenue by Source (Operating Funds)- Sources specify the origin of the revenue such as local, county, state, federal or other sources. Expenditures by Object (Operating Funds) An expenditure s object identifies the service or commodity obtained such as salaries, employee benefits, purchased services, supplies or capital projects. Expenditures by Function (Operating Funds) Expenditures by function describe the action, purpose or program in which activities are performed such as special education services. Level Three - Summary Data for Individual Funds Revenue by Source - Sources specify the origin of the revenue such as local, county, state, federal or other sources. Expenditures by Object An expenditure s object identifies the service or commodity obtained such as salaries, employee benefits, purchased services, supplies or capital projects. 91

8 Expenditures by Function Expenditures by function describe the action, purpose or program in which activities are performed such as special education services. Level Four - Information by Administrative Unit Expenditure Administrative Units are utilized to identify the program or school in which the expenditure is being made and approved. Revenue by Source - Sources specify the origin of the revenue such as local, county, state, federal or other sources. Expenditures by Object An expenditure s object identifies the service or commodity obtained such as salaries, employee benefits, purchased services, supplies or capital projects. Following each table in the Financial Section, accounting groupings are defined to provide the reader an understanding of the organization and meaning of the data. PRESENTATION OF FISCAL YEARS Tables in the Financial Section will utilize the following data and format. School Year Financial Data Presented Actual values (audited) and posted to DESE Actual values (audited) and posted to DESE Actual values (audited) and posted to DESE Estimated values based upon actual data through May, 2018 and using estimates for June, These values are highlighted in yellow Budgeted values using annual budgeting processes. These values are highlighted in green Estimated values based upon forecasts using methodologies described below Estimated values based upon forecasts using methodologies described below Estimated values based upon forecasts using methodologies described below. 92

9 BUDGET FORECAST Budget forecasts help in the assessment of the fiscal consequences of budget proposals. Sometimes the consequences of budget decisions are not realized until subsequent years. For example, the full cost of a new program that is implemented mid-year will not be realized until the following year. The budget forecasts will also reveal the financial consequences on future year budgets of the use of non-recurring revenues to fund recurring expenditures. The Park Hill School District uses both qualitative methods and quantitative models to project future financial performance. Qualitative methods, generally considered to be expert-driven, have generally been successful with short-term financial projections by estimating annual key revenue and expenditure measures such as aggregate assessed valuation growth, enrollment growth, state revenues, and employee benefit costs. Experts include but are not limited to the Platte County Assessor, area demographic experts, Missouri s Director of School Finance, the state Governor, and external consultants. Park Hill School District also uses quantitative models that discount the expert factor and use historical data and patterns to predict future financial trends. These models are typically used to project financials beyond a single school year into years where expert opinions do not exist or have proven to be less reliable. For example, student activity accounts funded primarily by fundraising receipts and student participation are difficult to project from an expert driven qualitative approach. In this case, district-wide historical trends based upon aggregated data from prior school years are used to form a model to project future revenues, expenditures, and financial performance. Criteria that are typically used to forecast revenue and expenditures for future years include: Student Enrollment. Student enrollment is a major criterion for determining the number of staff that will be required. A student headcount is taken each September and January to provide a consistent basis for development of budget forecasting. Expenditures associated with salaries and benefits, along with the student headcount are the main factors in developing the annual budget. Salaries and benefits account for 75% of the operating budget. Projections for student enrollment are presented to the Board of Education prior to budget presentations in the Spring of each year. Local Economy. The largest source of revenue for the district is local real estate and personal property taxes (cars, boats, trailers, etc.) that are based on the assessed valuation of the property. Reassessment of all real estate and personal property every other year (odd numbered years) is the district s basis of the creation of the tax levy that generates local revenues. The district works closely with local, state and federal government entities to monitor these values. State Economy. Economic conditions in the state impact substantial revenue streams including Proposition C sales tax, state foundation formula, and transportation aid. CPI. In order to further determine expenditures beyond salary and benefit costs, expenditures are based on a Consumer Price Index (CPI) escalator. This indicator relates to current economic indicators with regard to consumables, supplies, equipment and other purchased goods. Costs for materials and supplies, as well as major capital additions or changes are an important factor in determining expenses for future school terms. Construction costs have to be calculated into the budget including increased labor and material costs, the purchase of land, professional fees, and inflation. 93

10 Competitive Salary and Compensation Environment. The Park Hill Board of Education has established the desire to maintain competitive compensation for all employee groups in the district. The district monitors trends and ranks position in salary measures compared to benchmark school districts in the greater Kansas City area. The district has adopted the Association of School Business Officials (ASBO) Meritorious Budget standards which requires three years of financial forecasts beyond the budgeted year. The qualitative methods and quantitative models described above are used to generate these forecasts which are shared with the Board of Education and public in the annual budget report and in reports throughout the school year. Park Hill School District also uses these financial forecasts to project future fund balances which serve as the key sustainability measure featured on the district s financial scorecard. Forecasting for the fiscal years through is based on historical data and other information as it becomes known. Budget forecast figures for the through school years are provided throughout the document. Forecast figures are highlighted in the financial information presented above, specifically in the Fund Balance table and commentary provided on the preceding three pages. PRESENTATION OF VALUES In order to simplify the presentation, values within tables throughout the financial section have been rounded to the nearest dollar (whole number). Subtotals and grand totals have also been rounded. In some cases, totals in the table and the sums of the numbers presented may differ slightly due to rounding, but these differences are not material, and are not deemed by the school district as misrepresentation or errors. 94

11 LEVEL ONE SUMMARY OF ALL FUNDS Level One of the pyramid approach presents a summary of all funds. This includes the revenues and expenditures for all fund types. To assist the reader, the data is organized by Revenue by District Fund, Expenditures by District Fund, Revenue by Source, and Expenditures by Object. DISTRICT FUND SUMMARY (ALL FUNDS) REVENUE BY DISTRICT FUND (ALL FUNDS) The Park Hill School District accounts for revenues in eight specific funds. FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST General Fund 84,343,352 83,251,275 85,429,467 89,129,842 96,389,396 95,532,271 97,502, ,673, Special Revenue Fund 35,919,211 39,997,154 44,957,696 46,988,694 47,807,506 48,617,606 49,441,971 50,280, Debt Service Fund 9,638,142 30,566,506 19,573,451 10,808,697 11,719,980 11,592,348 11,818,532 11,937, Capital Projects Fund 6,635,612 9,984,764 9,112,953 5,030,035 5,322,470 5,259,443 5,379,636 2,462, Student Activity Fund 2,072,639 1,495,308 2,160,259 2,260,047 2,294,536 2,329,468 2,364,954 2,400, Nutrition Services Fund 5,558,496 5,862,674 5,765,683 5,639,811 5,999,087 6,117,479 6,238,320 6,361, Bond Projects Fund 7,717 11,461 12,923 90,841,743 25,353, ,951 44, Community Services Fund 3,934,087 4,336,140 4,196,189 4,316,197 4,271,253 4,351,978 4,434,750 4,519,631 Grand Total 148,109, ,505, ,208, ,015, ,158, ,977, ,225, ,636,149 Explanation of Major Shifts from Current Year 001-General Fund. The budgeted 8.1% increase in revenue in PHSD Fund 001 for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property. 95

12 In addition, increases in revenue are expected from the Early Childhood Special Education reimbursement (fully reimbursed by the state based upon prior year qualifying expenditures), and increased allocations and reimbursement within Federal Title programs (Title I, Title II, Title III). 002-Special Revenue Fund. The 1.7% increase in Fund 002 for the school year is due to an anticipated increase in the state foundation formula, and Proposition C sales tax, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue. 003-Debt Service Fund. The 8.4% increase in revenue in Fund 003 is primarily due to the anticipated increases in the debt service portion of current property tax (increased valuation of property). A sizeable portion of this increase is due to a large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. In addition, a 2.0 % increase in assessed valuation of property has been used to budget future years. It has been budgeted that the $ debt service levy will remain unchanged. 004-Capital Projects Fund. The 5.8% increase in the capital fund is influenced by the increase in property tax due to the protested taxes in In addition, a 2.0 % increase in assessed valuation of property has been used to budget future years, which is expected 005-Student Activity Fund. The 1.5% increase in Fund 005 is due to an anticipated increase in K-12 enrollment. Activities planned by schools are expected to increase the student activity revenue, such as fundraisers. 007-Nutrition Services Fund. Fund 007 revenues are exclusively that of the school nutrition program and reflect an increase in participation and lunch prices which drive revenue higher. These increases are offset by increased expenditures due to increased participation. 008-Bond Projects Fund. The 72.1% decrease in Fund 008 is due to the unusually high amount of revenue in General Obligation Bonds sold in to support the long-range facility plan, $87.7 million. The remainder of the bonds authorized by voters in April, 2017 is anticipated to be sold during the school year ($23.3 million). This difference in the amount of bonds sold in and account for the decrease in DESE Fund 004 revenue. The additional revenue beyond the bond sales in both and is from premium on the bonds sold. 011-Community Services Fund. A slight decrease in revenue in Fund 011 is based upon conservative revenue projections and do not reflect any substantial change in programming. Tuition rates for Adventure Club and pre-school will remain unchanged in

13 Definition of Funds Fund 001 Operating Fund/General/Incidental This fund is used to account for all financial resources except those required to be accounted for in another fund. Transactions in this fund are general operating expenditures that are not grouped by another fund. Typical expenditures here include, but are not limited to support staff salaries, benefits and instructional supplies and materials. This is considered a Governmental Fund under Generally Accepted Accounting Principles (GAAP). Fund Special Revenue Fund/Teachers This fund is used to account for revenue sources legally restricted to expenditures for the purpose of certified salaries, health insurance, benefits, and tuition payments to other districts. This is considered a Governmental Fund under Generally Accepted Accounting Principles (GAAP). Fund Debt Service Fund This fund is used to account for yearly accumulation of resources for, and the payment of, general long-term debt principal, interest, and fees. This fund is classified as a Non-Operating Fund throughout the budget. This is considered a Governmental Fund under Generally Accepted Accounting Principles (GAAP). Fund Capital Projects Fund/Building This fund is used to account for facility acquisition, construction, lease purchase, and other expenditures for classroom instructional equipment and support services equipment. This is considered a Governmental Fund under Generally Accepted Accounting Principles (GAAP). Fund Student Activity Fund This fund is administered as a revenue and expenditure fund to account for specific transactions relating to services for public school pupils such as entertainment, publications, clubs, band, student council, and other extra-curricular activities. This fund is merged with the General (Incidental) Fund for final state reports. This is considered a Fiduciary Fund under Generally Accepted Accounting Principles (GAAP). Fund Nutrition Services Fund This fund is administrated as a revenue and expenditure fund to account for transactions relating to district Nutrition Services operations. This fund is merged with the General (Incidental) Fund for final state reports. This is considered a Proprietary Fund under Generally Accepted Accounting Principles (GAAP). Fund Bond Projects Fund/Capital Outlay This fund is used to account for facility acquisition, construction, lease purchase, and all other capital outlay (equipment, furniture, architectural fees, etc.) expenditures resulting from a bond issue. This fund is merged with the Capital Projects Fund/Building for final state reports. This fund is classified as a Non-Operating Fund throughout the budget. This is considered a Governmental Fund under Generally Accepted Accounting Principles (GAAP). Fund 011 Community Services Fund/Education and Child Care This fund is administrated as a revenue and expenditure fund to account for specific transactions relating to Adventure Club, Pre School, Aquatic Center, and Community Education programs. This fund is merged with Operating Fund/General (Incidental) for final state reports. This is considered a Proprietary Fund under Generally Accepted Accounting Principles (GAAP). 97

14 EXPENDITURES BY DISTRICT FUND (ALL FUNDS) The Park Hill School District accounts for expenditures in eight specific funds: ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 42,312,873 44,287,027 47,552,722 53,012,860 55,778,216 57,837,656 57,873,225 60,205, Special Revenue Fund 72,184,288 73,879,387 77,096,832 79,334,538 83,580,008 86,868,530 89,439,258 92,086, Debt Service Fund 9,356,713 28,044,555 11,407,901 12,908,279 21,868,376 11,180,817 9,740,305 9,643, Capital Projects Fund 11,873,837 13,936,628 12,001,877 5,898,218 11,342,237 9,541,486 8,455,103 4,179, Student Activity Fund 1,824,072 2,421,764 2,302,081 1,862,035 2,477,902 2,514,252 2,551,623 2,589, Nutrition Services Fund 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Bond Projects Fund 7,649,916 83,279 5,523,704 14,548,399 67,346,500 30,350,011 4,171, Community Services Fund 3,599,061 3,851,785 3,967,129 3,896,098 4,040,108 4,124,760 4,211,786 4,301,254 Grand Total 154,172, ,145, ,524, ,412, ,242, ,497, ,597, ,235,290 Explanation of Major Shifts from Current Year 001-General Fund. The 5.2% increase in DESE Fund 001 are primarily due to costs associated with the anticipated increases in student enrollment growth. These costs increases include additional support staff, materials and supplies, and student transportation. In addition to additional employees, compensation increases are also a factor in the increase. Increases are also budgeted in fixed cost items such as fuel, paper, textbooks, utilities and other items. 002-Special Revenue Fund. The budgeted increase in expenditures in Fund 002 for are due to increased certified staffing (i.e. teachers, administrators, substitute teachers) to support enrollment growth as well as a 2.6% average compensation increase for the school year. 003-Debt Service Fund. The 69.4% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. 004-Capital Projects Fund. The 92.3% increase in the capital projects fund for is utilizing capital fund balance from prior years to renovate and update existing school facilities, including safety improvements, per the district s capital improvement plan. 98

15 005-Student Activity Fund. The 33.1% budgeted increase in student activity funds is based upon planned student activities outlined at each school. 007-Nutrition Services Fund. The 14.4% budgeted increase in Fund 007 expenditures is largely due to a capital improvement project planned at Park Hill South High School. These costs will be funded by capital reserves. The budgeted increase also accounts for increased participation of students within the school lunch program resulting in higher food, supply and labor costs. Revenue to support these expenditures are generated from Nutrition Services sources, including school lunch prices, and federal revenue generated through participation in the National School Lunch Program. 008-Bond Projects Fund. The extraordinarily high increase in the budgeted costs in capital projects is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and Community Services Fund. The 3.7% budgeted increase in Fund 011 is to cover anticipated increase in costs associated with additional students in preschool, Adventure Club, and Community Education. The increase also includes compensation increases (+2.6%) for employees in these programs. A definition of funds can be found on page

16 REVENUE BY SOURCE (ALL FUNDS) In addition to funds, the Park Hill School District accounts for revenue by source. Sources specify the origin of the revenue, such as local, county, state, federal or other sources (noted as Non-Current ). ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Revenue From Local Sources 105,102, ,158, ,963, ,917, ,730, ,017, ,287, ,701, Revenue From County Sources 3,984,257 4,984,750 4,418,974 5,920,570 6,328,997 6,459,653 6,593,024 6,729, Revenue From State Sources 33,281,034 36,695,268 39,826,931 40,071,751 40,754,560 41,574,565 42,283,398 43,006, Revenue From Federal Sources 5,679,726 5,527,305 6,123,020 5,371,404 6,039,029 5,904,950 6,039,379 6,177, Non-Current Revenue 61,971 20,139,031 8,876,033 87,733,615 23,304,546 20,523 21,549 22,626 Grand Total 148,109, ,505, ,208, ,015, ,158, ,977, ,225, ,636,149 Explanation of Major Shifts from Current Year 5100-Revenue from Local Sources. The budgeted 5.9% increase in revenue from Local Sources for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property Revenue from County Sources. The 6.9% increase in revenue from county sources is projected with state assessed railroad and utility taxes Revenue from State Sources. The 1.7% increase in revenue from state sources in school year is due to an anticipated increase in the state foundation formula and classroom trust fund, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue Revenue from Federal Sources. The 12.4% increase in federal funds is anticipated in based upon increases in federal allocations in IDEA, School Lunch Program and Title Programs. All of these increases are influenced by the district s enrollment growth Non-Current Revenue. The 73.4% decrease in from non-current revenue is due to the unusually high amount of revenue in General Obligation Bonds sold in to support the long-range facility plan, $87.7 million. The remainder of the bonds authorized by voters in April, 2017 is anticipated to 100

17 be sold during the school year ($23.3 million). This difference in the amount of bonds sold in and account for the decrease in non-current revenue. Sources 5100-Revenue from Local Sources Revenue received directly by the school district, including local property taxes, Proposition C sales tax, School Nutrition Services sales, student activity and fundraising revenues, and interest on investments Revenue from County Sources Revenues collected by the county and distributed to school districts, including county fines, escheats, and state assessed railroad and utility taxes Revenue from State Sources Revenues generated by state taxes or collected by the state and distributed to school districts through various formulas based on enrollment, attendance and/or demographic variables. These revenues include the state foundation formula, classroom trust fund, transportation reimbursement, reimbursement for Early Childhood Special Education and Parents as Teachers programming Revenue from Federal Sources Revenues generated at federal level and distributed to the state and/or LEA through the state. These include Title programs, IDEA reimbursement, Medicaid, School Lunch/Breakfast reimbursement for qualifying students, and various grants Non-Current Revenue Revenues such as the sale or refunding of general obligation bonds and sale of property. A definition of funds can be found on page

18 EXPENDITURES BY OBJECT (ALL FUNDS) In addition to District Fund, the Park Hill School District also accounts for expenditures by object. An expenditure s object identifies the service or commodity obtained, such as salaries, employee benefits, purchased services, supplies or capital projects. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Salaries 78,543,011 78,543,011 81,425,364 85,242,913 89,506,112 92,386,176 95,976,099 98,473, Employee Benefits 20,774,218 20,774,218 22,488,162 23,485,599 25,356,055 26,331,991 27,523,896 28,414, Purchased Services 15,438,673 15,438,673 16,287,854 16,752,546 18,735,637 19,314,384 18,946,525 19,429, Supplies and Materials 10,556,419 10,556,419 9,880,065 10,365,303 10,760,726 11,043,455 11,327,194 11,604, Capital Outlay 19,141,970 19,141,970 13,658,577 17,402,157 28,724,257 69,060,590 38,858,038 8,623, Long- and Short-Term Debt 9,718,129 9,718,129 28,405,884 12,554,750 12,628,070 17,379,007 8,129,981 6,779,468 Grand Total 154,172, ,145, ,524, ,412, ,242, ,497, ,597, ,235,290 Explanation of Major Shifts from Current Year 6100-Salaries. The 5.0% increase in salaries budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education Employee Benefits. The 8.4% increase in employee benefits budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education. Employee benefits such as the employer s contribution to retirement, FICA and Medicare increase with increasing salary costs. Also included in the increase is an anticipated 5.0% increase in employee insurance costs Purchased Services. The 8.7% increase in purchased services are primarily due to increases in contracted student transportation budgeted for The costs also include lease cost increases for mobile units located at schools to support student enrollment growth Supplies and Materials. A 3.4% increase is budgeted in supplies and materials for fixed cost items such as fuel, paper, textbooks, utilities and other items Capital Outlay. The 277.0% increase in the budgeted costs in capital outlay is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and

19 Also, the district is utilizing capital fund balance to renovate and update school facilities, including safety improvements, per the district s capital improvement plan Long- and Short-Term Debt. The 69.3% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. Definition of Objects 6100-Salaries Amounts paid to LEA employees who are considered to be in a position of permanent nature or hired temporarily, including personnel substituting for those in permanent positions. This includes gross salary for personal services rendered while on the LEA payroll Employee Benefits Amounts paid by LEAs on behalf of employees. These amounts are over and above the gross salary. Such payments are fringe benefits and, while not paid directly to employees, are part of the cost of salaries and benefits. These charges should be distributed to functions in accordance with the salary function of the employee or group of employees Purchased Services Amounts paid for services rendered by personnel who are not on the LEA s payroll and for other services that LEAs may purchase. While a product may or may not result from the transaction, the primary reason for the purchase is the service provided in order to obtain the desired result Supplies and Materials Amounts paid for material items of an expendable nature that are consumed, worn-out, deteriorate in use, or items that lose their identity through fabrication or incorporation into different or more complex units or substances. It should be noted that a more thorough classification of expenditures would be achieved by identifying the object with the function, for example, the type of supplies, such as audiovisual supplies or classroom teaching supplies. For evaluation of a particular supply object, supplies can be broken into subdivisions such as food and other supplies in the Nutrition Services program. To determine the merit of prepared food versus raw food, two further breakouts could be used: (1) food prepared for serving and (2) unprepared food Capital Outlay Expenditures for the acquisition of capital assets or additions to capital assets. They include expenditures for land or existing buildings, improvements of grounds, construction of buildings, additions to buildings, remodeling of buildings, initial equipment, additional equipment, and replacement of equipment. Lease purchase principal and interest with intent to acquire title must be treated as Capital Outlay. It is important to differentiate between expenditure object Long- and Short-Term Debt Expenditures for the retirement of debt, the payment of interest on debt and the payment of fees. 103

20 FUND BALANCES (ALL FUNDS) The closing balances (June 30) fund balances in each Park Hill School District fund appears below. FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST General Fund 28,078,698 28,264,693 29,304,503 28,575,640 30,414,319 29,858,010 28,990,289 29,651, Special Revenue Fund Debt Service Fund 10,149,910 12,671,861 20,837,412 18,737,830 8,589,434 9,000,965 11,079,192 13,373, Capital Projects Fund 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804, Student Activity Fund 3,187,751 2,261,295 2,249,473 2,647,484 2,464,118 2,279,334 2,092,665 1,904, Nutrition Services Fund -579, , , ,606-1,387,351-1,349,677-1,265,766-1,134, Bond Projects Fund 5,582,598 5,510, ,293,344 34,300,745 4,127, Community Services Fund -182, , , ,574 1,181,719 1,408,937 1,631,901 1,850,278 Grand Total 56,380,097 59,739,474 65,423, ,025,888 88,941,838 54,422,065 49,049,625 50,450,484 SIGNIFICANT CHANGES IN FUND BALANCES No significant changes in total operating fund balances (Fund 001, 002, 004, 005, 007, 011) are planned as the district is budgeting for operating fund balances to remain between 18 and 22% of prior year expenditures. Fund 002 has no balance as it is zeroed out at the end of each fiscal year via a state-approved transfer between Fund 001 and 002. Fund 003 balances may only be used to pay debt. The district is planning for the repayment of debt through school year. Fund 007 shows a negative fund balance that resulted from prior years. This balance is absorbed into the general fund and reported as a portion of the operating fund balance. Fund 008 shows no balance in forecasted years based upon a plan to sell approved general obligation bonds at a rate by which annual expenditures on bond projects will match the amount of bonds sold in that school year. A definition of funds can be found on page

21 LEVEL TWO - SUMMARY DATA FOR ALL OPERATING FUNDS Level Two of the pyramid approach presents a summary of operating funds. Operating funds exclude debt service (Fund 003) and bond projects (Fund 008). This includes the revenues and expenditures for all fund types. To assist the reader, the data is organized by Revenues by Source, Expenditures by Object and Expenditures by Function. DISTRICT FUND SUMMARY (OPERATING FUNDS) REVENUE BY DISTRICT FUND (OPERATING FUNDS) The Park Hill School District accounts for operating revenues in six specific funds. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 84,343,352 83,251,275 85,429,467 89,129,842 96,389,396 95,532,271 97,502, ,673, Special Revenue Fund 35,919,211 39,997,154 44,957,696 46,988,694 47,807,506 48,617,606 49,441,971 50,280, Capital Projects Fund 6,635,612 9,984,764 9,112,953 5,030,035 5,322,470 5,259,443 5,379,636 2,462, Student Activity Fund 2,072,639 1,495,308 2,160,259 2,260,047 2,294,536 2,329,468 2,364,954 2,400, Nutrition Services Fund 5,558,496 5,862,674 5,765,683 5,639,811 5,999,087 6,117,479 6,238,320 6,361, Community Services Fund 3,934,087 4,336,140 4,196,189 4,316,197 4,271,253 4,351,978 4,434,750 4,519,631 Grand Total 138,463, ,927, ,622, ,364, ,084, ,208, ,362, ,698,821 Explanation of Major Shifts from Current Year 001-General Fund. The budgeted 8.1% increase in revenue in PHSD Fund 001 for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property. In addition, increases in revenue are expected from the Early Childhood Special Education reimbursement (fully reimbursed by the state based upon prior year qualifying expenditures), and increased allocations and reimbursement within Federal Title programs (Title I, Title II, Title III). 105

22 002-Special Revenue Fund. The 1.7% increase in Fund 002 for the school year is due to an anticipated increase in the state foundation formula, and Proposition C sales tax, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue. 004-Capital Projects Fund. The 5.8% increase in the capital fund is influenced by the increase in property tax due to the protested taxes in In addition, a 2.0 % increase in assessed valuation of property has been used to budget future years, which is expected. 005-Student Activity Fund. The 1.5% increase in Fund 005 is due to an anticipated increase in K-12 enrollment. Activities, such as fundraisers, planned by schools are expected to increase the student activity revenue. 007-Nutrition Services Fund. Fund 007 revenues are exclusively that of the school nutrition program and reflect an increase in participation and lunch prices which drive revenue higher. These increases are offset by increased expenditures due to increased participation. 011-Community Services Fund. A slight decrease in revenue in Fund 011 is based upon conservative revenue projections and do not reflect any substantial change in programming. Tuition rates for Adventure Club and pre-school will remain unchanged in A definition of funds can be found on page

23 EXPENDITURE BY DISTRICT FUND (OPERATING FUNDS) The Park Hill School District accounts for operating expenditures in six specific funds. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 42,312,873 44,287,027 47,552,722 53,012,860 55,778,216 57,837,656 57,873,225 60,205, Special Revenue Fund 72,184,288 73,879,387 77,096,832 79,334,538 83,580,008 86,868,530 89,439,258 92,086, Capital Projects Fund 11,873,837 13,936,628 12,001,877 5,898,218 11,342,237 9,541,486 8,455,103 4,179, Student Activity Fund 1,824,072 2,421,764 2,302,081 1,862,035 2,477,902 2,514,252 2,551,623 2,589, Nutrition Services Fund 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Community Services Fund 3,599,061 3,851,785 3,967,129 3,896,098 4,040,108 4,124,760 4,211,786 4,301,254 Grand Total 137,165, ,018, ,593, ,955, ,027, ,966, ,685, ,592,234 Explanation of Major Shifts from Current Year 001-General Fund. The 5.2% increase in Fund 001 are primarily due to costs associated with the anticipated increases in student enrollment growth. These costs increases include additional support staff, materials and supplies, and student transportation. In addition to additional employees, compensation increases are also a factor in the increase. Increases are also budgeted in fixed cost items such as fuel, paper, textbooks, utilities and other items. 002-Special Revenue Fund. The budgeted increase in expenditures in Fund 002 for are due to increased certified staffing (i.e. teachers, administrators, substitute teachers) to support enrollment growth as well as a 2.6% average compensation increase for the school year. 004-Capital Projects Fund. The 92.3% increase in the capital projects fund for is utilizing capital fund balance from prior years to renovate and update existing school facilities, including safety improvements, per the district s capital improvement plan. 005-Student Activity Fund. The 33.1% budgeted increase in student activity funds is based upon planned student activities outlined at each school. 007-Nutrition Services Fund. The 14.4% budgeted increase in Fund 007 expenditures is largely due to a capital improvement project planned at Park Hill South High School. These costs will be funded by capital reserves. 107

24 The budgeted increase also accounts for increased participation of students within the school lunch program, resulting in higher food, supply and labor costs. Revenue to support these expenditures are generated from Nutrition Services sources, including school lunch prices, and federal revenue generated through participation in the National School Lunch Program. 011-Community Services Fund. The 3.7% budgeted increase in Fund 011 is to cover anticipated increase in costs associated with additional students in preschool, Adventure Club, and Community Education. The increase also includes compensation increases (+2.6%) for employees in these programs. A definition of funds can be found on page

25 REVENUE BY SOURCE (OPERATING FUNDS) In addition to District Funds, the Park Hill School District accounts for revenue by source. Sources specify the origin of the revenue, such as local, county, state, federal or other sources (noted as Non-Current ). ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Revenue From Local Sources 95,896,920 98,263, ,697, ,660, ,670, ,991, ,183, ,425, Revenue From County Sources 3,543,745 4,411,870 3,928,693 5,242,831 5,600,428 5,716,513 5,835,021 6,067, Revenue From State Sources 33,281,034 36,695,268 39,826,931 40,071,751 40,754,560 41,574,565 42,283,398 43,006, Revenue From Federal Sources 5,679,726 5,527,305 6,123,020 5,371,404 6,039,029 5,904,950 6,039,379 6,177, Non-Current Revenue 61,971 29,031 46,033 18,615 19,546 20,523 21,549 22,626 Grand Total 138,463, ,927, ,622, ,364, ,084, ,208, ,362, ,698,821 Explanation of Major Shifts from Current Year 5100-Revenue from Local Sources. The budgeted 5.9% increase in revenue from Local Sources for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property Revenue from County Sources. The 6.9% increase in revenue from county sources is projected with state assessed railroad and utility taxes Revenue from State Sources. The 1.7% increase in revenue from state sources in school year is due to an anticipated increase in the state foundation formula and classroom trust fund, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue Revenue from Federal Sources. The 12.4% increase in federal funds is anticipated in based upon increases in federal allocations in IDEA, School Lunch Program and Title Programs. All of these increases are influenced by the district s enrollment growth Non-Current Revenue. The 73.4% decrease in from non-current revenue is due to the unusually high amount of revenue in General Obligation Bonds sold in to support the long-range facility plan, $87.7 million. The remainder of the bonds authorized by voters in April, 2017 is anticipated to 109

26 be sold in during the school year ($23.3 million). This difference in the amount of bonds sold in and account for the decrease in non-current revenue. 110

27 EXPENDITURES BY OBJECT (OPERATING FUNDS) In addition to District Funds, the Park Hill School District also accounts for expenditures by object. An expenditure s object identifies the service or commodity obtained, such as salaries, employee benefits, purchased services, supplies, capital projects or debt. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Salaries 78,543,011 81,425,364 85,588,382 87,739,234 92,115,027 95,562,959 98,290, ,100, Employee Benefits 20,774,218 22,488,162 23,401,955 24,326,444 26,372,151 27,600,402 28,465,925 29,361, Purchased Services 15,418,306 16,287,854 17,412,000 16,791,289 18,258,699 16,589,280 16,973,776 17,472, Supplies and Materials 10,556,419 9,880,065 10,188,847 14,487,906 14,975,473 17,534,664 16,362,777 17,341, Capital Outlay 11,512,933 13,575,724 10,855,357 6,611,057 12,305,953 9,679,184 8,592,827 4,316, Long- and Short-Term Debt 360, ,904 1,146, Grand Total 137,165, ,018, ,593, ,955, ,027, ,966, ,685, ,592,234 Explanation of Major Shifts from Current Year 6100-Salaries. The 5.0% increase in salaries budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education Employee Benefits. The 8.4% increase in employee benefits budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education. Employee benefits such as the employer s contribution to retirement, FICA and Medicare increase with increasing salary costs. Also included in the increase is an anticipated 5.0% increase in employee insurance costs Purchased Services. The 8.7% increase in purchased services are primarily due to increases in contracted student transportation budgeted for The costs also include lease cost increases for mobile units located at schools to support student enrollment growth Supplies and Materials. A 3.4% increase is budgeted in supplies and materials for fixed cost items such as fuel, paper, textbooks, utilities and other items Capital Outlay. The 277.0% increase in the budgeted costs in capital outlay is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and

28 Also, the district is utilizing capital fund balance to renovate and update school facilities, including safety improvements, per the district s capital improvement plan Long- and Short-Term Debt. The 69.3% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. A definition of object can be found on page

29 EXPENDITURES BY FUNCTION (OPERATING FUNDS) In addition to District Funds, the Park Hill School District also accounts for expenditures by function. Expenditures by function describe the action, purpose or program in which activities are performed such as special education services. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Instruction 76,528,998 77,043,190 75,094,852 76,714,137 83,295,171 88,312,433 89,832,412 92,567, Regular Programs 55,221,974 54,998,304 52,150,461 53,412,611 57,920,388 62,025,224 62,768,264 64,702, Special Programs 16,529,508 17,061,705 17,719,027 18,287,175 20,227,181 21,007,951 21,681,916 22,378, Career Education Programs 204,591 58,096 55,046 51, , , , , Student Activities 3,616,901 3,781,758 4,162,728 4,015,346 3,814,778 3,932,341 4,021,059 4,112, Payments to Other Districts 956,023 1,143,327 1,007, ,892 1,225,746 1,238,003 1,250,384 1,262, Support Services 56,298,141 62,463,379 65,663,755 68,462,240 76,108,015 73,997,864 74,112,376 72,225, Pupils 4,380,581 5,092,389 5,257,315 4,938,852 5,785,415 6,087,914 6,292,974 6,505, Instructional Staff 7,401,428 12,857,966 14,320,188 11,471,383 12,553,593 11,281,289 11,094,016 11,051, General Administration 1,924,416 1,935,970 1,953,822 6,628,910 6,918,000 7,241,088 7,489,402 7,746, School Administration 7,195,281 7,348,866 7,847,560 8,981,012 8,218,006 8,646,605 8,928,495 9,219, Business 33,822,143 33,151,328 33,925,237 33,542,983 39,658,192 37,650,751 37,111,936 34,398, Central Office 1,574,292 2,076,860 2,359,633 2,899,100 2,974,809 3,090,217 3,195,553 3,304, Community Services 3,889,041 4,030,948 4,246,745 4,226,903 4,524,117 4,570,237 4,670,883 4,774, Community Services 1,983,072 2,152,003 2,297,805 2,281,671 2,410,880 2,438,700 2,466,844 2,495, Community Recreation Services 251, , , , , , , , Early Childhood Program 1,588,584 1,538,936 1,614,231 1,563,978 1,738,141 1,749,467 1,807,709 1,867, Non-Public School Pupils Services 14,699 11,820 8,093 10,141 13,756 9,905 10,195 10, Custody/Care of Children Services 38,931 45,920 49,613 44,418 55,679 57,525 59,433 61, Other Community Services 11,968 9,492 10,617 37,788 26,837 24,806 25,399 26,

30 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND FacilitiesAcq/Construction Services 88, ,652 2,441, , ,000 85,955 69,733 23, FacilitiesAcq/Const. Services 88, ,652 2,441, , ,000 85,955 69,733 23, Long-andShort-TermDebt 360, ,904 1,146, Principal 300, ,260 1,125, Interest 60,702 49,644 20, OtherDebtRelatedFees Grand Total 88, ,652 2,441, , ,000 85,955 69,733 23,897 Explanation of Major Shifts from Current Year The increase in Function 1000-Instruction expenditures reflects compensation increases for all district staff as well as staffing increases to maintain student to staff ratios. The increase in Function 2000-Support Services expenditures reflects compensation increases for all district staff as well as staffing increases to maintain student to staff ratios. The increase in Function 3000-Community Services expenditures is due to the anticipated increased costs associated with an increase in participation in district community based programs, including pre-school, school-aged child care, and Community Education. The decrease in Function 4000-Facility Acquisition and Construction is due to a shift in capital improvement projects from operating funds to bond funds. The increase in 5000-Long- and Short-Term Debt expenditures is primarily due to increases in existing lease payments, including the district support services lease and DNR energy loan. Definition of Functions 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 in a home or hospital, and in other learning situations such as those involving cocurricular activities. Instruction may also be provided through some other approved medium such as television, radio, telephone, and correspondence. Included here are the activities of aides or assistants of any type (clerks, graders, teaching machines, etc.) that assist in the instructional process. 114

31 1100-Regular Programs. Instructional activities that provide pupils in grades K-12 with learning experiences to prepare them for activities as citizens, family members, and non-vocational workers; and are contrasted with programs designed to improve or overcome physical, mental, social, and/or emotional handicaps Special Programs. Instructional activities designed primarily to deal with pupil exceptionalities. The Special Program Service Area includes prekindergarten, kindergarten, elementary and secondary service for the (1) Gifted and Talented; (2) Mentally Retarded; (3) Physically Handicapped; (4) Socially and/or Emotionally Handicapped; (5) Culturally Disadvantaged; (6) Pupils with Learning Disabilities; (7) Bilingual Education; and (8) Other Special Programs for other types of students Career Education Programs. Learning experiences which will provide individuals with the opportunity to develop the necessary knowledge, skills, and attitudes needed for employment in an occupational area Student Activities. Direct and personal services for public school pupils, such as entertainment, publications, clubs, band and orchestra, that are managed or operated by the student body under the guidance and direction of an adult, and are not a part of the regular instructional program. These activities are characterized by being not-for-credit, other than school hours, interests of students and partially or wholly self-sustaining via dues and admissions. Codes may be incremented sequentially by one to cover the various activities individually. Contracted non-route transportation expenses incurred transporting students to and from activity or field trips are included here Payments to Other Districts. Conduit-type payments to the district generally for tuition for services rendered to pupils residing in the paying district. (These are not counted in state totals of expenditures.) 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 the objectives of instruction, rather than as entities within themselves Pupils. Activities which are designed to assess and improve the well-being of pupils and to supplement the teaching process Instructional Staff. Activities associated with assisting the instructional staff with the content and process of providing learning experiences for pupils General Administration. Activities concerned with establishing and administering policy for operating the local education agency School Administration. Those activities concerned with overall administrative responsibility for a single school or a group of schools Business. Activities concerned with purchasing, paying, transporting, exchanging, and maintaining goods and services for the district. Included are the fiscal services, property and accounting services, operation and maintenance services, and internal services for operating all schools. This code series is not meant to imply an organizational structure or administrative flow for the district. 115

32 2600-Central Office. Activities, other than general administration, which support each of the other instructional and supporting services programs. These activities include planning, research, development, evaluation, information, staff, statistical, and data processing services Community Services. Community Services consist of those activities that do not directly relate to providing education for pupils in the LEA. These include services provided by the LEA for the community as a whole or some segment of the community and community welfare activities Community Services. Activities concerned with directing, managing, and supervising Community Services Community Recreation Services. Activities concerned with directing, managing, and supervising Community Services Early Childhood Program. Activities providing programs for Parents as Teachers and for three and four-year-old children, outside of a regular classroom setting, by screening, and through parent education. Direct instruction programs should be in Function 1101, Early Childhood, or Function 1281, Special Education Non-Public School Pupils Services. Activities concerned with directing, managing, and supervising non-public school services Custody/Care of Children Services. Activities concerned with directing, managing, and supervising custody and care of children services Other Community Services. Activities concerned with directing, managing, and supervising other Community Services Facilities Acquisition/Construction Services. Those activities concerned with the acquisition of land and buildings; remodeling buildings; the construction of buildings and additions to buildings; initial installation and extensions of service systems and other built-in equipment; and improvements to sites. Costs of these items are charged here within the Capital Projects Fund Facilities Acquisition and Construction Services. Activities concerned with directing, managing, and supervising facility acquisition and construction services Long- and Short-Term Debt. Activities servicing the debt of the LEA. Categories of debt services are listed under objects Principal. Amounts paid for bonded indebtedness incurred by the school district, energy loans or other principal payments Interest. Interest paid by the school district Other Debt Related Fees. Fees associated with the repayment of debt. 116

33 FUND BALANCES (OPERATING FUNDS) The closing balances (June 30) fund balances in each Park Hill School District fund appears below. FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST General Fund 28,078,698 28,264,693 29,304,503 28,575,640 30,414,319 29,858,010 28,990,289 29,651, Special Revenue Fund Capital Projects Fund 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804, Student Activity Fund 3,187,751 2,261,295 2,249,473 2,647,484 2,464,118 2,279,334 2,092,665 1,904, Nutrition Services Fund (579,691) (358,500) (265,236) (577,606) (1,387,351) (1,349,677) (1,265,766) (1,134,031) 011-Community Services Fund (182,940) 301, , ,574 1,181,719 1,408,937 1,631,901 1,850,278 Grand Total 40,647,589 41,556,832 44,586,019 47,994,714 46,051,659 41,293,415 37,970,433 37,077,020 SIGNIFICANT CHANGES IN FUND BALANCES No significant changes in total operating fund balances (Fund 001, 002, 004, 005, 007, 011) are planned as the district is budgeting for operating fund balances to remain between 18 and 22% of prior year expenditures. Fund 002 has no balance as it is zeroed out at the end of each fiscal year via a state-approved transfer between Fund 001 and 002. Fund 007 shows a negative fund balance that resulted from prior years. This balance is absorbed into the general fund and reported as a portion of the operating fund balance. A definition of funds can be found on page

34 LEVEL THREE -SUMMARY DATA FOR INDIVIDUAL FUNDS Level Three of the pyramid approach presents all district funds by individual fund. This includes the revenues and expenditures for all fund types. To assist the reader, the data is organized by Revenue by Source, and Expenditures by Object, and Expenditures by Function. REVENUE BY SOURCE (INDIVIDUAL DISTRICT FUNDS) (ALL FUNDS) In addition to District Fund, the Park Hill School District accounts for revenue by source. Sources specify the origin of the revenue, such as local, county, state, federal or other sources (noted as Non-Current ). ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 84,343,352 83,251,275 85,429,467 89,129,842 96,389,396 95,532,271 97,502, ,673, Revenue From Local Sources 74,255,816 72,435,375 74,343,504 76,841,485 83,244,345 82,182,965 83,798,671 88,236, Revenue From County Sources 2,690,327 3,448,507 2,985,240 4,164,008 4,476,309 4,565,835 4,657,152 5,117, Revenue From State Sources 3,917,874 4,191,255 4,190,640 4,869,973 5,028,714 5,313,507 5,479,099 5,650, Revenue From Federal Sources 3,479,336 3,176,138 3,910,084 3,254,376 3,640,028 3,469,964 3,567,869 3,668, Non-Current Revenue Special Revenue Fund 35,919,211 39,997,154 44,957,696 46,988,694 47,807,506 48,617,606 49,441,971 50,280, Revenue From Local Sources 9,423,633 10,298,859 10,861,902 11,043,706 11,311,472 11,565,980 11,826,215 12,092, Revenue From County Sources 734, , , , , , , , Revenue From State Sources 25,761,162 28,997,544 33,380,059 35,153,543 35,680,846 36,216,058 36,759,299 37,310, Revenue From Federal Sources Debt Service Fund 9,638,142 30,566,506 19,573,451 10,808,697 11,719,980 11,592,348 11,818,532 11,937, Revenue From Local Sources 9,197,631 9,883,627 10,253,171 10,130,958 10,991,411 10,849,208 11,060,529 11,276, Revenue From County Sources 440, , , , , , , , Non-Current Revenue 0 20,110,000 8,830, Capital Projects Fund 6,635,612 9,984,764 9,112,953 5,030,035 5,322,470 5,259,443 5,379,636 2,462, Revenue From Local Sources 2,886,983 6,229,393 6,629,790 4,724,042 4,993,993 4,923,810 5,036,675 2,367, Revenue From County Sources 119, , , , , , ,412 72,

35 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Revenue From State Sources 3,555,560 3,460,742 2,209, Revenue From Federal Sources 12,096 2, Non-Current Revenue 61,971 29,031 46,033 18,615 19,546 20,523 21,549 22, Student Activity Fund 2,072,639 1,495,308 2,160,259 2,260,047 2,294,536 2,329,468 2,364,954 2,400, Revenue From Local Sources 2,072,639 1,495,308 2,160,259 2,260,047 2,294,536 2,329,468 2,364,954 2,400, Nutrition Services Fund 5,558,496 5,862,674 5,765,683 5,639,811 5,999,087 6,117,479 6,238,320 6,361, Revenue From Local Sources 3,323,763 3,468,767 3,505,927 3,474,548 3,555,086 3,637,493 3,721,810 3,808, Revenue From State Sources 46,438 45,727 46,819 48,235 45,000 45,000 45,000 45, Revenue From Federal Sources 2,188,295 2,348,181 2,212,936 2,117,028 2,399,001 2,434,986 2,471,510 2,508, Bond Projects Fund 7,717 11,461 12,923 90,841,743 25,353, ,951 44, Revenue From Local Sources 7,717 11,461 12,923 3,126,743 2,068, ,951 44, Non-Current Revenue ,715,000 23,285, Community Services Fund 3,934,087 4,336,140 4,196,189 4,316,197 4,271,253 4,351,978 4,434,750 4,519, Revenue From Local Sources 3,934,087 4,336,140 4,196,189 4,316,197 4,271,253 4,351,978 4,434,750 4,519, Revenue From Federal Sources Grand Total 148,109, ,505, ,208, ,015, ,158, ,977, ,225, ,636,149 Explanation of Major Shifts from Current Year 001-General Fund. The budgeted 8.1% increase in revenue in PHSD Fund 001 for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property. In addition, increases in revenue are expected from the Early Childhood Special Education reimbursement (fully reimbursed by the state based upon prior year qualifying expenditures), and increased allocations and reimbursement within Federal Title programs (Title I, Title II, Title III). 119

36 002-Special Revenue Fund. The 1.7% increase in Fund 002 for the school year is due to an anticipated increase in the state foundation formula, and Proposition C sales tax, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue. 003-Debt Service Fund. The 8.4% increase in revenue in Fund 003 is primarily due to the anticipated increases in the debt service portion of current property tax (increased valuation of property). A sizeable portion of this increase is due to a large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. In addition, a 2.0 % increase in assessed valuation of property has been used to budget future years. It has been budgeted that the $ debt service levy will remain unchanged. 004-Capital Projects Fund. The 5.8% increase in the capital fund is influenced by the increase in property tax due to the protested taxes in In addition, a 2.0 % increase in assessed valuation of property has been used to budget future years, which is expected. 005-Student Activity Fund. The 1.5% increase in Fund 005 is due to an anticipated increase in K-12 enrollment. Activities planned by schools are expected to increase the student activity revenue, such as fundraisers. 007-Nutrition Services Fund. Fund 007 revenues are exclusively that of the school nutrition program and reflect an increase in participation and lunch prices which drive revenue higher. These increases are offset by increased expenditures due to increased participation. 008-Bond Projects Fund. The 72.1% decrease in Fund 008 is due to the unusually high amount of revenue in General Obligation Bonds sold in to support the long-range facility plan, $87.7 million. The remainder of the bonds authorized by voters in April, 2017 is anticipated to be sold during the school year ($23.3 million). This difference in the amount of bonds sold in and account for the decrease in DESE Fund 004 revenue. The additional revenue beyond the bond sales in both and is from premium on the bonds sold. 011-Community Services Fund. A slight decrease in revenue in Fund 011 is based upon conservative revenue projections and do not reflect any substantial change in programming. Tuition rates for Adventure Club and pre-school will remain unchanged in A definition of funds can be found on page

37 EXPENDITURES BY OBJECT (INDIVIDUAL DISTRICT FUNDS) (ALL FUNDS) In addition to District Funds, the Park Hill School District also accounts for expenditures by object. An expenditure s object identifies the service or commodity obtained, such as salaries, employee benefits, purchased services, supplies, capital projects or debt. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 42,312,873 44,287,027 47,552,722 53,012,860 55,778,216 57,837,656 57,873,225 60,205, Salaries 17,635,087 19,335,477 20,791,950 21,294,436 22,623,880 23,573,992 24,219,596 24,886, Employee Benefits 5,069,714 5,549,812 6,036,499 6,306,699 7,036,343 7,351,222 7,625,816 7,912, Purchased Services 13,302,074 13,922,446 14,887,389 14,619,843 15,521,995 13,817,667 14,166,760 14,629, Supplies and Materials 6,891,516 6,185,861 6,428,087 10,791,882 10,595,998 13,094,775 11,861,053 12,777, Capital Outlay -585, , , Long- and Short-Term Debt Special Revenue Fund 72,184,288 73,879,387 77,096,832 79,334,538 83,580,008 86,868,530 89,439,258 92,086, Salaries 56,579,670 57,481,720 59,950,905 61,533,445 64,451,116 66,845,649 68,839,682 70,893, Employee Benefits 14,648,594 15,254,340 16,138,337 16,846,865 17,897,146 18,778,818 19,343,071 19,923, Purchased Services 956,023 1,143,327 1,007, ,228 1,231,746 1,244,063 1,256,505 1,269, Debt Service Fund 9,356,713 28,044,555 11,407,901 12,908,279 21,868,376 11,180,817 9,740,305 9,643, Long- and Short-Term Debt 9,356,713 28,044,555 11,407,901 12,908,279 21,868,376 11,180,817 9,740,305 9,643, Capital Projects Fund 11,873,837 13,936,628 12,001,877 5,898,218 11,342,237 9,541,486 8,455,103 4,179, Capital Outlay 11,512,933 13,575,724 10,855,357 5,898,218 11,342,237 9,541,486 8,455,103 4,179, Long- and Short-Term Debt 360, ,904 1,146, Student Activity Fund 1,824,072 2,421,764 2,302,081 1,862,035 2,477,902 2,514,252 2,551,623 2,589, Salaries 39,438 34,897 37,584 64,984 38,116 38,688 39,268 39, Employee Benefits -64, ,834-40, ,796 5,613 5,697 5,782 5, Purchased Services 757, ,513 1,097, ,570 1,063,718 1,079,687 1,095,888 1,112, Supplies and Materials 972,250 1,010,992 1,118,862 1,078,414 1,345,478 1,365,178 1,385,658 1,406, Capital Outlay 119, ,528 88,456 23,863 24,977 25,002 25,027 25,

38 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND Nutrition Services Fund 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Salaries 1,956,410 2,027,521 2,164,294 2,240,818 2,387,179 2,434,923 2,465,362 2,496, Employee Benefits 556, , , , , , , , Purchased Services 52, ,143 33,176 45,615 60,363 61,121 61,883 62, Supplies and Materials 2,382,123 2,362,359 2,346,502 2,315,646 2,661,343 2,694,617 2,728,305 2,762, Capital Outlay 424, , , , , , , , Bond Projects Fund 7,649,916 83,279 5,523,704 14,548,399 67,346,500 30,350,011 4,171, Purchased Services 20, Capital Outlay 7,629,037 82,853 5,523,318 14,499,998 67,283,500 30,350,011 4,171, Long- and Short-Term Debt , , Community Services Fund 3,599,061 3,851,785 3,967,129 3,896,098 4,040,108 4,124,760 4,211,786 4,301, Salaries 2,332,406 2,545,749 2,643,649 2,605,551 2,614,736 2,669,707 2,726,191 2,784, Employee Benefits 563, , , , , , , , Purchased Services 350, , , , , , , , Supplies and Materials 310, , , , , , , , Capital Outlay 41,984 17,671 7, Long- and Short-Term Debt Grand Total 154,172, ,145, ,524, ,412, ,242, ,497, ,597, ,235,290 Explanation of Major Shifts from Current Year 001-General Fund. The 5.2% increase in DESE Fund 001 are primarily due to costs associated with the anticipated increases in student enrollment growth. These costs increases include additional support staff, materials and supplies, and student transportation. In addition to additional employees, compensation increases are also a factor in the increase. Increases are also budgeted in and fixed cost items such as fuel, paper, textbooks, utilities and other items. 002-Special Revenue Fund. The budgeted increase in expenditures in Fund 002 for are due to increased certified staffing (i.e. teachers, administrators, substitute teachers) to support enrollment growth as well as a 2.6% average compensation increase for the school year. 122

39 003-Debt Service Fund. The 69.4% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. 004-Capital Projects Fund. The 92.3% increase in the capital projects fund for is utilizing capital fund balance from prior years to renovate and update existing school facilities, including safety improvements, per the district s capital improvement plan. 005-Student Activity Fund. The 33.1% budgeted increase in student activity funds is based upon planned student activities outlined at each school. 007-Nutrition Services Fund. The 14.4% budgeted increase in Fund 007 expenditures is largely due to a capital improvement project planned at Park Hill South High School. These costs will be funded by capital reserves. The budgeted increase also accounts for increased participation of students within the school lunch program, resulting in higher food, supply and labor costs. Revenue to support these expenditures are generated from Nutrition Services sources, including school lunch prices, and federal revenue generated through participation in the National School Lunch Program. 008-Bond Projects Fund. The extraordinarily high increase in the budgeted costs in capital projects is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and Community Services Fund. The 3.7% budgeted increase in Fund 011 is to cover anticipated increase in costs associated with additional students in preschool, Adventure Club, and Community Education. The increase also includes compensation increases (+2.6%) for employees in these programs. A definition of funds can be found on page

40 EXPENDITURES BY FUNCTION (INDIVIDUAL FUNDS) (ALL FUNDS) In addition to District Funds, the Park Hill School District also accounts for expenditures by function. Expenditures by function describe the action, purpose or program in which activities are performed such as special education services. ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST FUND General Fund 42,312,873 44,287,027 47,552,722 53,012,860 55,778,216 57,837,656 57,873,225 60,205, Instruction 9,966,065 8,073,429 8,186,082 9,981,026 11,117,495 12,944,158 12,389,346 13,157, Support Services 32,228,294 36,093,599 39,209,175 42,833,898 44,385,358 44,629,518 45,211,793 46,767, Community Services 118, , , , , , , , Special Revenue Fund 72,184,288 73,879,387 77,096,832 79,334,538 83,580,008 86,868,530 89,439,258 92,086, Instruction 59,975,464 61,647,402 64,117,727 64,708,839 69,542,264 72,273,875 74,406,291 76,602, Support Services 12,094,729 12,146,156 12,816,659 14,465,437 13,786,163 14,369,770 14,802,108 15,247, Community Services 114,095 85, , , , , , , Debt Service Fund 9,356,713 28,044,555 11,407,901 12,908,279 21,868,376 11,180,817 9,740,305 9,643, Long and Short-Term Debt 9,356,713 28,044,555 11,407,901 12,908,279 21,868,376 11,180,817 9,740,305 9,643, Capital Projects Fund 11,873,837 13,936,628 12,001,877 5,898,218 11,342,237 9,541,486 8,455,103 4,179, Instruction 4,931,608 5,519, , , , , , , Support Services 6,410,355 7,918,711 7,630,895 5,134,651 10,991,707 8,781,031 7,804,518 3,839, Community Services 82,262 17,671 7, Facilities Acq/Construction 88, ,652 2,441, , ,000 85,955 69,733 23, Long and Short-Term Debt 360, ,904 1,146, Student Activity Fund 1,824,072 2,421,764 2,302,081 1,862,035 2,477,902 2,514,252 2,551,623 2,589, Instruction 1,655,860 1,802,669 2,015,537 1,813,355 2,384,882 2,419,900 2,455,923 2,492, Support Services 142, , ,506 12,433 73,455 74,493 75,543 76, Community Services 25,706 7,555 13,038 36,247 19,565 19,859 20,157 20, Nutrition Services Fund 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Support Services 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Bond Projects Fund 7,649,916 83,279 5,523,704 14,548,399 67,346,500 30,350,011 4,171,

41 FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Instruction , Support Services 20, ,883,000 2,414,830 2,120, Facilities Acq/Construction 7,629,037 82,853 5,523,318 14,327,566 65,400,500 27,935,181 2,051, Long and Short-Term Debt , , Community Services Fund 3,599,061 3,851,785 3,967,129 3,896,098 4,040,108 4,124,760 4,211,786 4,301, Support Services 50,596 51,889 61,100 63,640 62,500 63,247 64,005 64, Community Services 3,548,465 3,799,895 3,906,029 3,832,458 3,977,608 4,061,513 4,147,781 4,236,480 Grand Total 154,172, ,145, ,524, ,412, ,242, ,497, ,597, ,235,290 Explanation of Major Shifts from Current Year 001-General Fund. The 5.2% increase in DESE Fund 001 are primarily due to costs associated with the anticipated increases in student enrollment growth. These costs increases include additional support staff, materials and supplies, and student transportation. In addition to additional employees, compensation increases are also a factor in the increase. Increases are also budgeted in and fixed cost items such as fuel, paper, textbooks, utilities and other items. 002-Special Revenue Fund. The budgeted increase in expenditures in Fund 002 for are due to increased certified staffing (i.e. teachers, administrators, substitute teachers) to support enrollment growth as well as a 2.6% average compensation increase for the school year. 003-Debt Service Fund. The 69.4% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. 004-Capital Projects Fund. The 92.3% increase in the capital projects fund for is utilizing capital fund balance from prior years to renovate and update existing school facilities, including safety improvements, per the district s capital improvement plan. 005-Student Activity Fund. The 33.1% budgeted increase in student activity funds is based upon planned student activities outlined at each school. 007-Nutrition Services Fund. The 14.4% budgeted increase in Fund 007 expenditures is largely due to a capital improvement project planned at Park Hill South High School. These costs will be funded by capital reserves. 125

42 The budgeted increase also accounts for increased participation of students within the school lunch program, resulting in higher food, supply and labor costs. Revenue to support these expenditures are generated from Nutrition Service sources, including school lunch prices, and federal revenue generated through participation in the National School Lunch Program. 008-Bond Projects Fund. The extraordinarily high increase in the budgeted costs in capital projects is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and Community Services Fund. The 3.7% budgeted increase in Fund 011 is to cover anticipated increase in costs associated with additional students in preschool, Adventure Club, and Community Education. The increase also includes compensation increases (+2.6%) for employees in these programs. A definition of funds can be found on page

43 FUND BALANCES (ALL FUNDS) The closing balances (June 30) fund balances in each Park Hill School District fund appears below. FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST General Fund 28,078,698 28,264,693 29,304,503 28,575,640 30,414,319 29,858,010 28,990,289 29,651, Special Revenue Fund Debt Service Fund 10,149,910 12,671,861 20,837,412 18,737,830 8,589,434 9,000,965 11,079,192 13,373, Capital Projects Fund 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804, Student Activity Fund 3,187,751 2,261,295 2,249,473 2,647,484 2,464,118 2,279,334 2,092,665 1,904, Nutrition Services Fund (579,691) (358,500) (265,236) (577,606) (1,387,351) (1,349,677) (1,265,766) (1,134,031) 008-Bond Projects Fund 5,582,598 5,510,781 (0) 76,293,344 34,300,745 4,127, Community Services Fund (182,940) 301, , ,574 1,181,719 1,408,937 1,631,901 1,850,278 Grand Total 56,380,097 59,739,474 65,423, ,025,888 88,941,838 54,422,065 49,049,625 50,450,484 SIGNIFICANT CHANGES IN FUND BALANCES No significant changes in total operating fund balances (Fund 001, 002, 004, 005, 007, 011) are planned as the district is budgeting for operating fund balances to remain between 18 and 22% of prior year expenditures. Fund 002 has no balance as it is zeroed out at the end of each fiscal year via a state-approved transfer between Fund 001 and 002. Fund 003 balances may only be used to pay debt. The district is planning for the repayment of debt through school year. Fund 007 shows a negative fund balance that resulted from prior years. This balance is absorbed into the general fund and reported as a portion of the operating fund balance. Fund 008 shows no balance in forecasted years based upon a plan to sell approved general obligation bonds at a rate by which annual expenditures on bond projects will match the amount of bonds sold in that school year. A definition of funds can be found on page

44 LEVEL FOUR - INFORMATION BY ADMINISTRATIVE UNIT Level Four of the pyramid approach presents a summary of all funds by Administrative Unit. Expenditure Administrative Units are utilized to identify the program or school in which the expenditure is being made and approved. This section is organized by Revenues by Source and Administrative Unit, and Expenditures by Administrative Unit and Object. REVENUE BY SOURCE AND ADMINISTRATIVE UNIT (ALL FUNDS) ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST SOURCE/ADMININSTRATIVE UNIT Revenues From Local Sources 105,102, ,158, ,963, ,917, ,730, ,017, ,287, ,701, General 94,456,432 97,094, ,028, ,044, ,777, ,845, ,891, ,075, Platte County Health (PCHD) Grant 0 0 7,000 7,000 7,000 7,000 7,000 7, Beyond the Bell Grant (ELE) ,500 23,500 23,500 23,500 23,500 23, Walking School Bus Grant (Renner) , District Business 405, , , , , , , , Employee Benefits Department 6, ,766 4,100 4,053 4,114 4,176 4,239 4, Human Resources Department 12, , Public Information 0 2,000 1, , , , , , Park Hill High School 800, , , , , , , , Education Foundation Park Hill South High School 619, , , , , , , , Technology Operations 172, , , , , , , , LEAD Innovation Studio Sunshine Requests Local Teacher Contracts 2,000 6,000 9,000 1,092 1,108 1,125 1,142 1,

45 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST SOURCE/ADMININSTRATIVE UNIT Local E-Rate 329, , , , , , , , Plaza Middle School 66,257 58,240 46,078 52,421 53,082 53,878 54,686 55, Lakeview Middle School 70,132 69,319 51,504 63,539 64,347 65,312 66,292 67, Congress Middle School 62,229 54,184 59,803 57,249 57,978 58,847 59,730 60, Local E-Tax 8,861 9,172 10,484 7,132 7,239 7,348 7,458 7, Russell Jones Education Center ,012 1,027 1,042 1, Chinn Elementary 35,249 18,061 21,407 21,089 21,355 21,675 22,000 22, Graden Elementary 58,951 68,266 49,820 57,739 58,467 59,344 60,234 61, Line Creek Elementary 27,925 39,802 11,019 23,842 24,142 24,504 24,872 25, Renner Elementary 27,461 25,951 23,399 22,540 22,824 23,166 23,513 23, Southeast Elementary 21,557 38,721 23,412 31,172 31,565 32,038 32,519 33, Union Chapel Elementary 35,841 38,540 33,795 33,941 34,369 34,885 35,408 35, English Landing Elementary 25,657 19,827 36,463 29,322 29,692 30,137 30,589 31, Prairie Point Elementary 39,196 31,751 28,978 34,188 34,619 35,138 35,665 36, Hawthorn Elementary 30,160 30,837 29,369 32,177 32,582 33,071 33,567 34, Tiffany Ridge Elementary 24,813 37,658 32,966 34,573 35,009 35,534 36,067 36, Miscellaneous 3,905 2,489 1,532 1,943 1,972 2,002 2,032 2, Buildings & Grounds 125,367 97, , , , , , , Special Education , Employee Wellness (Fitness Center) 20,346 19,513 19,567 21,227 21,545 21,868 22,196 22, Employee Health Enhancement 8, , , , , , , , Nutrition Services 3,323,763 3,468,767 3,505,927 3,474,548 3,555,086 3,637,493 3,721,810 3,808, Beverage Contract 72,500-9,000-9, Gerner Center (Activity Fund) 15,843 17,966 17,072 14,117 14,823 15,564 16,342 17, Adventure Club 2,175,219 2,579,307 2,614,403 2,643,889 2,672,972 2,702,375 2,732,101 2,762, Aquatic Center 110, , , , , , , , Community Education 203, , , , , , , ,

46 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST SOURCE/ADMININSTRATIVE UNIT Pre-School (Fee-based) 1,483,757 1,469,879 1,331,149 1,410,478 1,333,670 1,378,834 1,425,579 1,473, Advertising Support (PHS) 0-100,700-86, PHS Athletics & Intramurals 89, , ,246 69,220 70,258 71,312 72,382 73, PHHS Athletics & Intramurals 117, , ,593 69,443 70,485 71,542 72,615 73, Congress Middle School Intramurals Academic Services Centralized Processing Staff Development Media Services and Textbooks 0 0 3,797 1,752 1,778 1,805 1,832 1, Prof Development Committee (PDC) Professional Studies 0 2, , Park Hill TV 2,775 1, ,431 3,475 3,527 3,580 3, Online Learning 600 3, Gifted Miscellaneous 3,593 1,050 27, Revenue From County Sources 3,984,257 4,984,750 4,418,974 5,920,570 6,328,997 6,459,653 6,593,024 6,729, General 3,984,257 4,984,750 4,418,974 5,920,570 6,328,997 6,459,653 6,593,024 6,729, Revenue From State Sources 33,281,034 36,695,268 39,826,931 40,071,751 40,754,560 41,574,565 42,283,398 43,006, General 33,224,956 33,576,066 36,602,547 36,291,928 36,836,307 37,388,851 37,949,684 38,518, IDEA , Special Education - High Needs , , , , , SPED - Assistive Technology 0 628, Division of Social Services Grant ,050 13,380 13,380 13,380 13,380 13, Early Childhood SPED (ECSE) 0 2,434,430 2,665,560 3,254,267 3,378,457 3,636,289 3,774,468 3,917, Other Revenue 9,640 10, Nutrition Services 46,438 45,727 46,819 48,235 45,000 45,000 45,000 45, Parents As Teachers ,158 86,250 87,975 89,735 91,530 93,

47 ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST SOURCE/ADMININSTRATIVE UNIT Miscellaneous Revenue From Federal Sources 5,679,726 5,527,305 6,123,020 5,371,404 6,039,029 5,904,950 6,039,379 6,177, General 3,491,432 39, Title IIA 0 183, , , , , , , IDEA 0 1,780,094 2,125,214 1,950,001 1,961,968 2,020,827 2,081,452 2,143, Title III - LEP 0 83,220 82,882 82,828 93,912 96,260 98, , Title III - Immigrant ,913 17,633 23,660 24,252 24,858 25, Title I 0 783, , ,742 1,154,346 1,010,053 1,035,304 1,061, SPED - Assistive Technology 0 61,602 32,572 8,036 25,000 25,625 26,266 26, Medicaid ,406 67,136 68,814 70,534 72,297 74, Title IV Part A ,000 11,640 11,931 12,229 12, Early Childhood SPED (ECSE) 0 248, , Nutrition Services 2,188,295 2,348,181 2,212,936 2,117,028 2,399,001 2,434,986 2,471,510 2,508, Miscellaneous Non-Current Revenue 61,971 20,139,031 8,876,033 87,733,615 23,304,546 20,523 21,549 22, General 61,971 20,139,031 8,876,033 87,733,615 23,304,546 20,523 21,549 22,626 Grand Total 148,109, ,505, ,208, ,015, ,158, ,977, ,225, ,636,149 Explanation of Major Shifts from Current Year 5100-Revenue from Local Sources. The budgeted 5.9% increase in revenue from Local Sources for the budget is primarily due to the anticipated increases in property tax. Most of this increase is the large amount of protested taxes due in the school year, but now anticipated to be paid in the school year as delinquent taxes. This deflates the estimated amount in and increases the amount expected in Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property Revenue from County Sources. The 6.9% increase in revenue from county sources is projected with state assessed railroad and utility taxes. 131

48 5300-Revenue from State Sources. The 1.7% increase in revenue from state sources in school year is due to an anticipated increase in the state foundation formula and classroom trust fund, all of which is placed in Fund 002. These increases are directly tied to enrollment growth, which are key variables in the calculation of this revenue Revenue from Federal Sources. The 12.4% increase in federal funds is anticipated in based upon increases in federal allocations in IDEA, School Lunch Program and Title Programs. All of these increases are influenced by the district s enrollment growth Non-Current Revenue. The 73.4% decrease in from non-current revenue is due to the unusually high amount of revenue in General Obligation Bonds sold in to support the long-range facility plan, $87.7 million. The remainder of the bonds authorized by voters in April, 2017 is anticipated to be sold in during the school year ($23.3 million). This difference in the amount of bonds sold in and account for the decrease in non-current revenue. 132

49 EXPENDITURES BY OBJECT (ALL FUNDS) SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Academic Services 6,596,920 5,830,150 5,250,675 5,260,980 7,112,745 6,902,462 7,033,799 7,168, Salaries 2,259,128 2,198,905 1,926,730 2,137,958 2,914,152 2,732,903 2,796,585 2,861, Employee Benefits 381, , , , , , , , Purchased Services 2,267,962 2,211,253 2,074,023 1,606,856 2,191,190 2,167,878 2,198,753 2,230, Supplies and Materials 1,566,889 1,046, ,802 1,151,030 1,455,050 1,471,919 1,496,228 1,520, Capital Outlay 121,667 17,083 49,670-18,000 18,018 18,036 18,054 Buildings & Grounds 17,907,110 16,969,277 18,154,397 17,414,174 21,125,305 20,715,232 19,734,667 16,593, Salaries 6,015,932 6,221,827 6,404,990 6,352,202 6,750,116 6,885,118 6,953,969 7,023, Employee Benefits 1,603,493 1,694,303 1,807,977 1,834,354 2,115,417 2,136,571 2,157,938 2,179, Purchased Services 1,197,353 1,403,675 1,504,946 2,249,997 2,144,652 1,286,791 1,318,964 1,351, Supplies and Materials 3,288,508 3,309,303 3,424,873 3,461,857 4,044,591 4,125,483 4,207,992 4,292, Capital Outlay 5,801,823 4,340,169 5,011,611 3,515,764 6,070,529 6,281,269 5,095,804 1,746,276 Chinn Elementary 3,059,183 3,111,764 3,113,228 3,174,349 3,302,030 3,464,508 3,572,590 3,684, Salaries 2,370,452 2,403,213 2,393,224 2,450,412 2,529,974 2,650,513 2,732,395 2,816, Employee Benefits 620, , , , , , , , Purchased Services 10,421 11,244 11,945 11,331 11,370 11,597 11,829 12, Supplies and Materials 43,164 31,325 38,105 35,092 50,446 51,322 52,214 53, Capital Outlay 14,638 31,286 17,507 Community Programs 2,283,024 2,474,848 2,622,624 2,632,466 2,749,704 2,789,194 2,829,474 2,870, Salaries 1,437,595 1,580,587 1,704,464 1,728,729 1,754,053 1,778,900 1,804,205 1,829, Employee Benefits 290, , , , , , , , Purchased Services 338, , , , , , , , Supplies and Materials 200, , , , , , , , Capital Outlay 14,907 16,092 7,

50 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL Long and Short Term Debt - - ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Congress Middle School 5,049,079 5,285,162 5,645,498 5,503,072 5,623,848 5,889,790 6,068,018 6,251, Salaries 3,855,361 3,978,089 4,181,372 4,131,109 4,180,459 4,373,951 4,507,166 4,644, Employee Benefits 1,047,682 1,089,147 1,173,598 1,146,333 1,216,861 1,285,551 1,326,740 1,369, Purchased Services 49,593 50,873 63,378 69,845 50,712 51,724 52,757 53, Supplies and Materials 84,366 95,916 93, , , , , , Capital Outlay 12,077 71, ,314 29,096 26,079 26,105 26,131 26,157 District/Business Office 31,546,526 44,529,070 31,358,036 32,138,647 42,099,568 32,467,801 31,737,311 32,374, Salaries 10,043,228 11,552,586 13,051,415 13,908,896 14,766,975 15,537,380 16,040,902 16,560, Employee Benefits 2,852,086 3,081,484 3,461,445 4,013,107 4,067,194 4,324,786 4,502,936 4,688, Purchased Services 1,277,789 1,356,298 1,193,536 1,222,068 1,272,211 1,297,654 1,323,607 1,350, Supplies and Materials 22,689 44,350 39,481 77, , , , , Capital Outlay 7,632,605 88,468 1,057,738 8,318 14,500 14,645 14,792 14, Long- and Short-Term Debt 9,718,129 28,405,884 12,554,420 12,908,279 21,868,376 11,180,817 9,740,305 9,643,056 Education Foundation 745 1,045 1,266 27,852 1,500 1,530 1,561 1, Salaries , Employee Benefits - - 1, Purchased Services 745 1,045 1,266 1,500 1,500 1,530 1,561 1,592 Employee Benefits Department (64,335) 495,611 (27,054) (108,487) 27,700 27,792 27,885 27, Employee Benefits (66,231) 493,904 (34,598) (116,530) 10,000 10,000 10,000 10, Purchased Services 1,812 1,225 1,509 3,186 12,200 12,209 12,218 12, Supplies and Materials ,034 4,857 5,500 5,583 5,667 5,752 English Landing Elementary 2,674,379 2,668,052 2,716,050 2,828,145 2,895,022 3,033,351 3,125,691 3,220, Salaries 2,041,237 2,031,955 2,033,046 2,150,963 2,186,106 2,287,809 2,357,656 2,429, Employee Benefits 566, , , , , , , , Purchased Services 12,026 29,272 16,131 17,423 15,045 15,329 15,617 15, Supplies and Materials 36,006 40,243 48,231 60,406 66,323 67,533 68,769 70, Capital Outlay 18,823 8,637 38,563 2,733 3,500 3,504 3,508 3,

51 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Federal Grants 3,414,337 3,569,126 3,565,067 3,175,239 3,558,878 3,361,163 3,456,350 3,554, Salaries 2,293,816 2,557,274 2,446,068 1,995,346 2,420,183 2,299,996 2,364,941 2,431, Employee Benefits 425, , , , , , , , Purchased Services 419, , , , , , , , Supplies and Materials 263, , , , , , , , Capital Outlay 12,096 2,986-6,528 5,000 5,150 5,305 5,464 Nutrition Services 5,371,661 5,641,483 5,672,419 5,952,181 6,808,832 6,079,805 6,154,409 6,229, Salaries 1,956,410 2,027,521 2,164,294 2,240,818 2,387,179 2,434,923 2,465,362 2,496, Employee Benefits 556, , , , , , , , Purchased Services 52, ,143 33,176 45,615 60,363 61,121 61,883 62, Supplies and Materials 2,382,123 2,362,359 2,346,502 2,315,646 2,661,343 2,694,617 2,728,305 2,762, Capital Outlay 424, , , , , , , ,195 Gerner Family Early Education Center 4,042,499 4,524,371 4,699,779 4,751,008 5,069,361 5,257,394 5,452,430 5,654, Salaries 2,681,517 2,852,130 2,985,803 2,904,488 3,005,384 3,116,706 3,232,157 3,351, Employee Benefits 756, , , ,376 1,148,573 1,191,346 1,235,722 1,281, Purchased Services 400, , , , , , , , Supplies and Materials 157, , , , , , , , Capital Outlay 46,701 1,579 2,842-3,000 3,114 3,232 3,355 Graden Elementary 2,956,041 3,052,061 3,094,415 3,090,203 3,088,690 3,236,686 3,335,293 3,436, Salaries 2,244,586 2,272,800 2,324,558 2,331,002 2,312,949 2,420,832 2,494,798 2,571, Employee Benefits 606, , , , , , , , Purchased Services 23,989 30,921 32,999 20,974 36,510 37,111 37,719 38, Supplies and Materials 53,896 49,962 54,339 76,125 52,953 53,897 54,856 55, Capital Outlay 27,112 50,313 21,214 6,826 3,000 3,003 3,006 3,009 Hawthorn Elementary 3,144,567 3,215,514 3,437,082 3,353,100 3,600,780 3,778,963 3,897,516 4,019, Salaries 2,414,657 2,450,435 2,650,857 2,574,988 2,728,944 2,859,798 2,948,438 3,039, Employee Benefits 667, , , , , , , , Purchased Services 20,088 23,949 13,382 9,780 14,456 14,714 14,976 15,

52 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Supplies and Materials 31,404 37,924 38,590 53,933 62,396 63,496 64,614 65, Capital Outlay 11,226 11,918 16,552-1,470 1,471 1,472 1,473 Human Resources 656, , , , , , , , Salaries 303,582 81,288 75,995 81,073 91,350 94,027 96,790 99, Employee Benefits 95,932 50,374 45,876 38,298 56,471 58,896 61,427 64, Purchased Services 101, , , , , , , , Supplies and Materials 155,693 25,980 43,948 21, , , , , Capital Outlay ,400-5,000 5,005 5,010 5,015 Lakeview Middle School 5,368,496 5,380,004 5,473,828 5,260,957 5,336,939 5,588,907 5,757,616 5,931, Salaries 4,114,944 4,015,764 4,088,310 3,909,062 3,931,234 4,112,628 4,237,667 4,366, Employee Benefits 1,090,082 1,123,324 1,170,738 1,125,025 1,188,804 1,255,716 1,295,666 1,336, Purchased Services 42,543 51,800 57,322 50,348 63,017 64,216 65,433 66, Supplies and Materials 87,831 93,529 98, , , , , , Capital Outlay 33,097 95,588 59,443 24,100 17,134 17,151 17,168 17,185 LEAD Innovation Studio - - 7,379 1,074,450 1,855,740 1,940,165 1,997,394 2,056, Salaries 3, ,105 1,315,004 1,375,064 1,416,629 1,459, Employee Benefits 1, , , , , , Purchased Services - - 3,346 50, , , , , Supplies and Materials 10,579 24,258 24,740 25,231 25,731 Legal Counsel ,783 18,442 98, , , , Purchased Services ,986 18,244 97,680 99, , , Supplies and Materials - - 2, Line Creek Elementary 2,661,435 2,823,605 2,894,653 3,043,112 3,187,432 3,340,372 3,442,210 3,547, Salaries 2,061,356 2,139,042 2,227,523 2,318,714 2,421,828 2,534,507 2,611,847 2,691, Employee Benefits 540, , , , , , , , Purchased Services 10,306 15,198 15,046 24,801 18,780 19,132 19,489 19, Supplies and Materials 28,220 39,165 24,863 43,379 53,903 54,850 55,809 56, Capital Outlay 20,877 44,604 8,220 7,

53 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Local/County Grants 11,230 10,404 5,869 5,709 7,000 7,000 7,000 7, Salaries ,200 1,200 1,200 1, Employee Benefits Purchased Services 1,186 6,114 2,871 5,000 2,000 2,000 2,000 2, Supplies and Materials 10,044 4,291 2, ,608 3,608 3,608 3, Capital Outlay - - Park Hill High School 11,444,565 12,018,121 12,975,418 12,890,680 14,038,364 14,669,946 15,099,465 15,542, Salaries 7,919,202 8,232,213 8,814,006 8,790,882 9,506,406 9,949,675 10,253,601 10,566, Employee Benefits 2,286,442 2,433,330 2,623,947 2,635,088 2,816,563 2,976,816 3,073,864 3,174, Purchased Services 657, , , , , , , , Supplies and Materials 466, , , , , , , , Capital Outlay 114, , ,232 43,519 84,802 84,887 84,972 85,057 Park Hill South , Capital Outlay ,531 Park Hill South High School 11,598,996 11,592,287 12,510,661 11,998,297 12,004,437 12,924,007 13,212,663 13,379, Salaries 8,384,183 8,130,228 8,689,802 8,377,621 8,097,408 8,475,589 8,734,725 9,001, Employee Benefits 2,213,404 2,297,789 2,415,567 2,353,416 2,342,784 2,476,492 2,557,782 2,641, Purchased Services 512, , , , , , , , Supplies and Materials 380, , , , , , , , Capital Outlay 107, , ,383 39,373 31, , , ,253 Plaza Middle School 4,772,274 4,986,724 5,089,655 5,433,702 5,610,678 5,878,042 6,057,056 6,241, Salaries 3,663,643 3,791,843 3,880,025 4,122,075 4,246,086 4,442,401 4,577,709 4,717, Employee Benefits 968,637 1,029,383 1,062,279 1,125,258 1,210,983 1,279,224 1,320,073 1,362, Purchased Services 38,787 47,993 47,375 50,403 44,320 45,162 46,018 46, Supplies and Materials 74,621 89,800 81, , , , , , Capital Outlay 26,588 27,706 18,722 12,318 Prairie Point Elementary 2,912,410 2,937,148 2,840,973 3,191,816 3,295,982 3,456,788 3,564,040 3,674, Salaries 2,260,777 2,253,574 2,182,880 2,431,816 2,498,944 2,616,864 2,697,306 2,780,

54 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Employee Benefits 585, , , , , , , , Purchased Services 13,754 18,364 14,508 18,066 18,045 18,363 18,686 19, Supplies and Materials 41,458 47,237 44,706 53,453 54,207 55,142 56,090 57, Capital Outlay 10,663 13,901 5,604 1,399 Public Information 179, , , , , , , , Salaries 72,785 84,425 82,296 99, , , , , Employee Benefits 21,264 24,751 25,412 28,539 31,182 32,584 34,050 35, Purchased Services 83,629 89,296 98,873 95, , , , , Supplies and Materials 2,278 3,512 5,620 4,368 12,550 10,480 10,682 10, Capital Outlay - 1, Renner Elementary 2,871,331 3,151,297 3,418,973 3,478,445 3,533,511 3,708,250 3,824,235 3,943, Salaries 2,218,747 2,404,802 2,588,948 2,638,049 2,676,730 2,804,622 2,891,389 2,980, Employee Benefits 600, , , , , , , , Purchased Services 7,642 9,861 13,326 14,362 14,790 15,065 15,344 15, Supplies and Materials 33,528 39,747 41,638 47,928 46,359 47,170 47,995 48, Capital Outlay 10,462 1,716 4,139 Russell Jones Education Center 1,185,997 1,256,067 1,311,431 1,440,784 1,533,685 1,612,814 1,665,424 1,719, Salaries 890, , ,269 1,087,161 1,141,838 1,198,345 1,236,124 1,275, Employee Benefits 270, , , , , , , , Purchased Services 4,241 8,064 3,410 7,776 4,410 4,498 4,587 4, Supplies and Materials 10,682 7,190 9,819 10,344 14,527 14,802 15,083 15, Capital Outlay 9,720 2,554 2,561-1,900 1,902 1,904 1,906 School Improvement 85,412 55, , , , , , , Salaries 14,000 9,000-3, Employee Benefits 2,298 1, Purchased Services 38,289 38, ,243 24,308 46,799 47,735 48,689 49, Supplies and Materials 30,824 6,125 3,085 82, , , , , Capital Outlay

55 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Southeast Elementary 2,529,708 2,667,643 2,789,416 2,698,455 2,662,545 2,790,586 2,875,849 2,963, Salaries 1,969,778 2,037,399 2,141,261 2,068,391 2,014,933 2,109,019 2,173,494 2,239, Employee Benefits 510, , , , , , , , Purchased Services 9,768 8,850 10,198 11,119 13,275 13,525 13,777 14, Supplies and Materials 28,031 46,127 40,345 56,698 53,217 54,145 55,089 56, Capital Outlay 11,486 9,874 3,252 Special Education 728, , , , , , , , Salaries 230, , , ,551 94,700 98, , , Employee Benefits 31,220 19,715 15,440 19,558 14,950 15,623 16,325 17, Purchased Services 466, , , , , , , , Supplies and Materials 473-3,614 5,250 1,125 1,148 1,171 1, Capital Outlay State Grants 60,343 71,632 57,631 59,887 90,581 89,356 92,278 95, Salaries 47,553 57,089 44,321 45,428 46,609 48,240 49,928 51, Employee Benefits 12,790 14,543 13,310 14,459 43,972 41,116 42,350 43, Purchased Services Supplies and Materials Capital Outlay - - Student & Administrative Services 363, , , , , , , , Salaries 69,910 78,365 95,867 79, , , , , Employee Benefits 16,829 18,533 21,308 18,767 23,649 24,716 25,828 26, Purchased Services 209, , , , , , , , Supplies and Materials 42,289 43,691 37,098 48,819 82,816 84,473 86,163 87, Capital Outlay 24,743 16,652 26,784 4,399 Technology Operations 7,190,689 9,908,164 5,780,165 7,592,345 9,432,869 9,392,430 8,204,551 8,375, Salaries 87, , , , , , , , Employee Benefits 8,461 15,351 27,510 14,079 16, Purchased Services 2,077,625 1,399,584 2,032,565 1,093,940 1,342,320 1,317,579 1,346,526 1,480,

56 SOURCE/ADMININSTRATIVE UNIT ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST Supplies and Materials 464, , ,809 4,066,259 2,745,805 5,168,948 3,778,039 4,534, Capital Outlay 4,552,645 7,872,587 2,765,104 2,202,919 5,081,678 2,682,813 2,854,307 2,133,455 Tiffany Ridge Elementary 2,997,412 3,135,494 3,424,869 3,619,859 3,606,591 3,779,294 3,894,526 4,013, Salaries 2,308,431 2,403,340 2,630,276 2,798,101 2,757,441 2,885,528 2,973,508 3,064, Employee Benefits 608, , , , , , , , Purchased Services 13,249 26,455 16,524 20,151 14,225 14,493 14,764 15, Supplies and Materials 37,320 43,053 49,829 45,354 69,339 70,558 71,799 73, Capital Outlay 29,944 24,700 23,845 4,984 Transportation 5,641,106 6,000,734 6,319,917 6,565,062 6,816,779 5,966,777 6,145,781 6,330, Salaries 48,627 49,270 60,548 53,611 51,813 45,352 46,713 48, Employee Benefits 12,899 13,375 15,086 14,887 14,945 13,081 13,473 13, Purchased Services 5,066,373 5,642,848 5,896,918 6,090,684 6,336,301 5,546,212 5,712,599 5,883, Supplies and Materials 486, , , , , , , , Capital Outlay 26,586 - Union Chapel Elementary 2,931,195 2,989,188 3,122,632 3,164,784 3,183,216 3,336,667 3,439,012 3,544, Salaries 2,263,594 2,271,590 2,315,757 2,408,384 2,424,678 2,538,248 2,615,971 2,696, Employee Benefits 588, , , , , , , , Purchased Services 11,527 14,212 9,908 11,011 8,345 8,512 8,682 8, Supplies and Materials 43,049 39,537 55,934 87,631 72,067 73,294 74,540 75, Capital Outlay 24,251 43,468 88, Bond Projects 6,236,769 14,937,928 67,778,441 30,792,558 4,625, , Salaries 377, , , , , Purchased Services ,500 33,150 33,813 34, Supplies and Materials 6,000 6,120 6,242 6, Capital Outlay 6,236,257 14,511,836 67,283,500 30,350,011 4,171, Long- and Short-Term Debt ,401 63, Grand Total 154,172, ,145, ,524, ,412, ,242, ,497, ,597, ,235,

57 Explanation of Major Shifts from Current Year 6100-Salaries. The 5.0% increase in salaries budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education Employee Benefits. The 8.4% increase in employee benefits budgeted in accounts for increases in staff due to student enrollment growth, and average salary increases approved by the Board of Education. Employee benefits such as the employer s contribution to retirement, FICA and Medicare increase with increasing salary costs. Also included in the increase is an anticipated 5.0% increase in employee insurance costs Purchased Services. The 8.7% increase in purchased services are primarily due to increases in contracted student transportation budgeted for The costs also include lease cost increases for mobile units located at schools to support student enrollment growth Supplies and Materials. A 3.4% increase is budgeted in supplies and materials for fixed cost items such as fuel, paper, textbooks, utilities and other items Capital Outlay. The 277.0% increase in the budgeted costs in capital outlay is due to the planned construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and Also, the district is utilizing capital fund balance to renovate and update school facilities, including safety improvements, per the district s capital improvement plan Long- and Short-Term Debt. The 69.3% increase in debt expenditures are due to a $9.8 million payment that had been escrowed in a prior year from the refunding of bonds. 141

58 FUND BALANCES (ALL FUNDS) The closing balances (June 30) fund balances in each Park Hill School District fund appears below. FUND ACTUAL ACTUAL ACTUAL ESTIMATED BUDGET FORECAST FORECAST FORECAST General Fund 28,078,698 28,264,693 29,304,503 28,575,640 30,414,319 29,858,010 28,990,289 29,651, Special Revenue Fund Debt Service Fund 10,149,910 12,671,861 20,837,412 18,737,830 8,589,434 9,000,965 11,079,192 13,373, Capital Projects Fund 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804, Student Activity Fund 3,187,751 2,261,295 2,249,473 2,647,484 2,464,118 2,279,334 2,092,665 1,904, Nutrition Services Fund -579, , , ,606-1,387,351-1,349,677-1,265,766-1,134, Bond Projects Fund 5,582,598 5,510, ,293,344 34,300,745 4,127, Community Services Fund -182, , , ,574 1,181,719 1,408,937 1,631,901 1,850,278 Grand Total 56,380,097 59,739,474 65,423, ,025,888 88,941,838 54,422,065 49,049,625 50,450,484 SIGNIFICANT CHANGES IN FUND BALANCES No significant changes in total operating fund balances (Fund 001, 002, 004, 005, 007, 011) are planned as the district is budgeting for operating fund balances to remain between 18 and 22% of prior year expenditures. Fund 002 has no balance as it is zeroed out at the end of each fiscal year via a state-approved transfer between Fund 001 and 002. Fund 003 balances may only be used to pay debt. The district is planning for the repayment of debt through school year. Fund 007 shows a negative fund balance that resulted from prior years. This balance is absorbed into the general fund and reported as a portion of the operating fund balance. Fund 008 shows no balance in forecasted years based upon a plan to sell approved general obligation bonds at a rate by which annual expenditures on bond projects will match the amount of bonds sold in that school year. A definition of funds can be found on page

59 REVENUE DISCUSSION Total revenues for the Park Hill School District are expected to decrease by $55.8 million in from the prior year. This decrease is wholly due to the large proportion of the April, 2017 no-tax-increase bonds sold in ($87.7 million) compared to the amount anticipated in ($23.3 million). Operating revenues in Park Hill School District are expected to increase in over the prior year by $8.7 million. Approximately $3.5 million is due to a shift in local property tax due in but that was protested and held by the county until the assessments are resolved. This revenue is budgeted to be received in which inflates the value higher than normal. Also included in the budgeted increase in is a 2.0% increase in assessed valuation of property. Additional increases in operating revenue is directly tied to student enrollment growth that is projected in (+1.6%). Additional students increase allocations from Proposition C sales tax, Missouri s school foundation formula, the classroom trust fund, and federal allocations. Also, increased enrollment is expected to increase revenue is the school lunch program, student activity funds, pre-school and Adventure Club. EXPENDITURE DISCUSSION Total expenditures are expected to increase in by approximately $75.8 million. This is due primarily to the increase in expenditures related to the projects outlined in the April, 2017 No-Tax-Increase bond issue, including the construction of Walden Middle School, Hopewell Elementary School, the district Support Services and Transportation facility and the LEAD Innovation Studio. These costs are funded by bond revenue received in and The Support Services and Transportation facility, Walden Middle School and Hopewell Elementary School are scheduled to open in Fall, In addition to the bond projects listed above, the district is planning to spend an additional $12 million to support capital improvements in existing schools per the district s capital improvement plan. Anticipated enrollment growth and participation in programs is expected to drive up expenditures in staffing. Also, the district negotiated compensation increases (2.6%) for all employee groups. These result in new expenditures in both employee salary and benefits. A $9.8 million increase in debt expenditures is due to a payment that had been escrowed in a prior year from the refunding of bonds. Other increases are due to increases in contracted student transportation, additional mobile units, fuel, paper, textbooks, utilities and other items to support district enrollment growth. 143

60 CAPITAL EXPENDITURES AND CAPITAL PLANNING The district utilizes a capital planning process that includes a committee of staff to prioritize major capital projects. For the school year, the approved capital plan includes the construction of four new school facilities: Hopewell Elementary School Planned to open August, 2019 Walden Middle School Planned to open August, 2019 District Support Services and Transportation Center Planned to open October, 2019 LEAD Innovation Studio Planed to open August, 2020 REVENUE SOURCES FOR CAPITAL PROJECTS There are two major revenue sources for an annual capital plan: proceeds from the sale of general obligation bonds (Fund 008), and revenue generated from the capital fund tax levy (Fund 004). FUND 008 BOND PROJECTS FUND In April, 2017, district taxpayers overwhelmingly passed (83.9%) a $110.0 million bond issue for the purpose of acquiring, constructing, renovating, improving, furnishing and equipping school facilities. More specifically, the projects within this bond included (a) constructing, furnishing and equipping a new middle school, (b) constructing, furnishing and equipping a new elementary school, (c) constructing, furnishing and equipping a facility for use by high school students, (d) constructing and equipping a facility for school support services, and (e) improvements and renovations to various school buildings. The strategic sale of revenue bonds over time supports (a) the cash flow necessary to construct the facilities within the timelines above; and (b) structure the debt over time as to maintain the district s current $ debt service levy per $100 of the assessed valuation of real and personal property, resulting in no tax increase for district taxpayers. The district sold $87.7 million of the bonds in Fall, 2017 to support these projects, with $76.2 million remaining in Fund 008 fund balance to be carried into The Board of Education is planning to sell the remainder of the bonds authorized by voters in Fall, 2018 ($23.3 million). FUND 004 CAPITAL PROJECTS FUND The district is budgeting for $5.3 million in capital funds to be generated into Fund 004 Capital Projects Fund by the $0.18 capital fund tax levy, and other local/county sources. State regulations also allow for limited transfers from Fund 001 to Fund 004 via the Greater of $162,326 or 7% x SAT x Prior Year WADA transfer, which allows the district to transfer over $4.0 million dollars annually from the operational fund to the capital projects fund. The district is budgeting for a $3.0 million dollar transfer into Fund 004 at the conclusion of the school year. The district also will utilize existing fund balances within Fund 004 ($13.3 million) to cover capital costs. 144

61 CAPITAL PLAN EXPENDITURES The capital plan is budgeted to cost $79.5 million. For budget year , capital expenditures are budgeted in Fund 004 and Fund 008. Within both funds, all capital expenditures are budgeted within object class 6500 Capital Outlay account codes. A summary of the capital expenditures by object detail code follows: Capital Outlay 79,589, Land 0 Expenditures for the purchase of land Buildings 72,518,497 Expenditures for acquiring buildings and additions, either existing or to be constructed. Included are expenditures for the final installment or lease purchase payments (except interest) that have an ending date resulting in the acquisition of buildings including mobile units. This excludes payments to public school housing authorities or similar agencies. Expenditures for major permanent structural alterations and the initial or additional installation of heating and ventilating systems, electrical systems, plumbing systems, fire protection systems and other service systems in existing buildings are included as well as professional fees (architect, engineer, etc.) considered as a part of a particular project. Bond issuance costs on new issues used to fund the acquisition or construction of new buildings or additions should be coded to this object code if the district intends to capitalize these costs (otherwise, bond issuance costs are coded to object code 6631, Fees) Improvements Other Than Buildings 2,631,082 Expenditures for the initial and additional improvement of sites and adjacent ways after acquisition by the LEA, consisting of such work as grading, landscaping, seeding and planting of shrubs and trees; constructing new sidewalks, roadways, retaining walls, sewers and storm drains; installing hydrants; initial surfacing and oil treatment of athletic fields and tennis courts; furnishing and installing for the first time fixed playground apparatus, flagpoles, gateways, fences and underground storage tanks, which are not part of building service systems; and demolition work. Special assessments against the LEA for capital improvements such as streets, curbs and drains are also recorded here Regular Equipment 798,748 Expenditures for the initial, additional and replacement of equipment items, such as furniture and machinery. This includes expenditures for two way radios, satellite dishes and cellular phones. In order to differentiate between initial or additional equipment purchases and replacement equipment purchase, it is recommended that subaccounts be established with those titles Equipment Classroom Instructional Apparatus 88,835 Expenditures for classroom instructional apparatus other than furniture (includes the lease purchase of musical instruments) Technology Related Hardware 3,027,791 Expenditures for technology related equipment and technology infrastructure. These cost include those associated with the purchase of network equipment, servers, PCs, printers, other peripherals and devices. Technology related supplies should be coded to Technology Software 269,500 Expenditures for purchased software used for the educational or administrative purposes that exceed the capitalization threshold. Expenditures for software that meet the standards for classification as a supply should be coded to Vehicles Except School Buses 195,000 Expenditures for the purchase of vehicles to transport persons or objects Other Capital Outlay 60,

62 CAPITAL PROJECTS For capital needs outside of school construction and renovation, the school district utilizes a committee to prioritize requests from each school and budget leader. Capital requests for items such as playground repairs and updates, maintenance cycle items such as roofs, HVAC, technology, furniture, and other capital requests are reviewed by the Capital Request Prioritization Process described below. Highest priority items are incorporated into future budgets as needed. The table below outlines the specific projects recommended by the committee and that are included in the budget. The projects are organized by school/facility. School/Capital Project Budget Allocation Chinn Elementary 183,156 Install digital video entry system (security enhancement) 14,691 Install audio/visual system in gymnasium/cafeteria 48,465 Replace/repair roofs (maintenance cycle) 120,000 English Landing Elementary 18,191 Install digital video entry system (security enhancement) 14,691 Replace general/furniture equipment (maintenance cycle) 2,500 Replace student equipment 1,000 Graden Elementary 182,691 Install digital video entry system (security enhancement) 14,691 Replace/repair roofs (maintenance cycle) 155,000 Install video surveillance exterior enhancements 10,000 Make general building improvements 1,000 Replace general office equipment 2,000 Hawthorn Elementary 16,161 Install digital video entry system (security enhancement) 14,691 Replace general/furniture equipment (maintenance cycle) 1,470 Hopewell Elementary 20,828,750 Construction of Hopewell Elementary School 20,528,750 Architectural and Engineering services for Hopewell Elementary School 300,000 Line Creek Elementary 49,833 Replace tile playground with bonded rubber surface 35,142 Install digital video entry system (security enhancement) 14,691 Prairie Point Elementary 1,141,033 Recable school to update technology infrastructure 331,595 Replace 295 tons of HVAC equipment 488,000 Replace tile floor in cafeteria 23,282 Install digital video entry system (security enhancement) 14,691 Install audio/visual system in gymnasium/cafeteria 48,465 Replace/repair roofs (maintenance cycle) 235,000 Renner Elementary 155,691 Replace 116 tons of HVAC equipment 131,000 Install digital video entry system (security enhancement) 14,691 Update Renner staff restroom floor 10,000 Southeast Elementary 14,691 Install digital video entry system (security enhancement) 14,691 Tiffany Ridge Elementary 133,448 Install digital video entry system (security enhancement) 14,691 Install audio/visual system in gymnasium/cafeteria 48,465 Upgrade the play field grass area 70,292 Union Chapel Elementary 63,156 Install digital video entry system (security enhancement) 14,691 Install audio/visual system in gymnasium/cafeteria 48,465 Congress Middle School 89,

63 School/Capital Project Budget Allocation Install digital video entry system (security enhancement) 14,691 Install audio/visual system in gymnasium/cafeteria 48,465 Replace musical instruments (maintenance cycle) 26,079 Replace general/furniture equipment (maintenance cycle) 500 Lakeview Middle School 66,606 Renovate gymnasium floor 34,781 Install digital video entry system (security enhancement) 14,691 Replace musical instruments (maintenance cycle) 17,134 Plaza Middle School 19,691 Install digital video entry system (security enhancement) 14,691 Update Plaza flooring (maintenance cycle) 5,000 Walden Middle School 21,658,000 Construction of Walden Middle School 21,658,000 Lead Innovation Studio 3,065,536 Finish the 5th floor of LEAD Innovation Studio (leased) 129,536 Architectural and engineering services for LEAD Innovation Studio 1,050,000 Construction of LEAD Innovation Studio (new district facility) 1,886,000 Park Hill High School 2,731,651 Recable school to update technology infrastructure 466,083 Replace flooring in various classrooms 96,361 Front entrance renovation and modifications to front office 674,533 Add space in the counseling area 385,448 Replace 660 tons of HVAC equipment 231,000 Install digital video entry system (security enhancement) 14,691 Replace/repair roofs (maintenance cycle) 373,000 Renovate the Park Hill High School Media Center 385,448 Replace doors and windows at Park Hill High School (maintenance cycle) 21,365 Replace instructional equipment at Park Hill High School 12,007 Replace technology equipment at Park Hill High School 11,715 Replacement of band uniforms at Park Hill High School 60,000 Park Hill South 3,848,919 Resurface and repair tennis courts 130,428 Replace 771 tons of HVAC equipment 150,000 Install turf on the practice football field 574,860 Add bleachers for the track 127,000 Add lights for baseball and softball field 647,667 Install digital video entry system (security enhancement) 14,691 Replace the artificial turf on the soccer field 574,860 Resurface the track 117,385 Renovate front offices at Park Hill South 274,584 Renovate the Park Hill South High School Media Center 274,583 Renovate kitchen at Park Hill South 376,239 Replacement of High School equipment/furniture (maintenance cycle) 10,000 Replace musical instruments (maintenance cycle) 20,000 Replacement of Broadcast Journalism student furniture and equipment 1,622 Replace student equipment 18,000 Replace various equipment for Nutrition Services (Food Service) 537,000 Gerner Early Education Center 241,084 Recable school to update technology infrastructure 138,142 Replace the flooring in multi purpose room 35,000 Replace staircase landings with carpet or slip proof surface 15,251 Renovate Parents as Teachers room to create additional teaching spaces 35,000 Install digital video entry system (security enhancement) 14,691 Add student instructional equipment for Early Childhood Special Services 3,000 Russell Jones Education Center 16,591 Install digital video entry system (security enhancement) 14,691 Replace laminator 1,

64 School/Capital Project Budget Allocation District Office 49,500 Replace district vehicles (maintenance cycle) 25,000 Add technology related hardware for Special Services 5,000 Contingency for student equipment to support enrollment adjustments 5,000 Upgrade equipment for Board of Education 2,500 Replace various equipment and furniture at District Office (maintenance cycle) 5,000 Replacement of various Items (insurance deductible) 2,000 Replace Employee Wellness Equipment (maintenance cycle) 5,000 Operations 1,392,723 Replace district vehicles (maintenance cycle) 195,000 Replace custodial equipment (maintenance cycle) 30,433 Replace grounds mowers (maintenance cycle) 51,302 Make various grounds improvements (maintenance cycle) 150,000 Make various building improvements (maintenance cycle) 250,000 Install C&C Smart Structure for energy management 125,520 Masonry repairs to schools and facilities (maintenance cycle) 220,000 Asphalt and concrete repairs district wide (maintenance cycle) 85,448 Replace doors and windows at District Office (maintenance cycle) 21,120 Replace doors and windows at Park Hill South (maintenance cycle) 51,900 Update fire alarm hardware district wide (maintenance cycle) 17,000 Update stucco repair on facilities as needed (maintenance cycle) 10,000 Architect/Engineer Services for school renovation projects 100,000 Annual fencing repairs district wide (maintenance cycle) 10,000 Maintenance cycle for general operations equipment 75,000 Support Services & Transportation 20,212,750 Construction of Support Services & Transportation Center 19,482,750 Architectural and engineering services for Support Services and Transportation Center 495,000 Construct Fiber Optic network for Support Services and Transportation Center 235,000 Technology 3,409,866 Virtual Desktop Project 250,000 Access Control System Improvements (maintenance cycle) 32,136 Classroom A/V Equipment replacements and upgrades (maintenance cycle) 235,000 Replace and update copier and printer hardware 29,100 Replace desktop computers district wide (maintenance cycle) 318,000 Replace Elementary LCD Projectors (maintenance cycle) 850,000 Update annual Microsoft licensing 121,872 Upgrade and expand digital storage hardware (Netapp) 500,000 Upgrade network equipment district wide (maintenance cycle) 303,080 Upgrade server virtualization software (VMWare) 54,024 Update access control software and licensing 18,233 Upgrade Adobe software licenses 54,325 Upgrade Alio annual software license 39,392 Upgrade Business Office budget/supply software 22,500 Upgrade Student Information System software (Infinite Campus) 135,050 Install video surveillance exterior enhancements 97,154 Upgrade wireless network equipment (maintenance cycle) 350,000 Grand Total 79,589,453 FUTURE CAPITAL PROJECTS & BUDGET ALLOCATIONS As a part of a rolling three year capital improvement plan, the following projects have been prioritized by the capital planning committee for consideration in future budgets. These projects will be reviewed and the list will be revised based upon an annual review of projects and budget process. 148

65 Budget allocations for the capital plan in future years are forecasted in the table below: Capital Object Land 6521 Buildings 72,518,497 34,922,191 8,059,067 1,660, Improvements Other Than Buildings 2,631,082 2,207,517 1,822, , Regular Equipment 798, , , , Equipment Instructional Apparatus 3,386,126 1,920,833 2,037,043 1,549, Vehicles Except School Buses 195, , ,979 46, Other Capital Outlay 60,000 60,060 60,120 60,180 Grand Total 79,589,453 40,029,195 12,764,750 4,316,809 Congress Middle School District Office Add clocks in hallways and improve intercom system Convert classroom to the nurse's office to expand the nurse's work area Enhance the exterior surveillance system Install Epoxy flooring in the cafeteria and art room Install sound system in the gym Maintenance cycle for Roof Replacement and Repair Pull and clean hot water coils Replace carpet as needed Replace flooring in the cafeteria/commons area Upgrade wireless network infrastructure Enhance the exterior surveillance system English Landing Elementary Enhance the exterior surveillance system Expand playground field to the west and level asphalt playground Install Epoxy flooring in the cafeteria and art room Graden Elementary Install audio/visual system in one large space (gymnasium or cafeteria) Hawthorn Elementary Enhance the exterior surveillance system Install audio/visual system in one large space (gymnasium or cafeteria) Maintenance cycle for Roof Replacement and Repair Replace flooring in the cafeteria, art room, workroom Upgrade wireless network infrastructure Park Hill South Additional security cameras are needed (interior) Enhance the exterior surveillance system Replace 771 tons of HVAC equipment Upgrade wireless network infrastructure Plaza Middle School Add bleachers at Plaza Middle School Enhance the exterior surveillance system Install audio/visual system in one large space (gymnasium or cafeteria) Maintenance cycle for Roof Replacement and Repair Reconfigure boys and girls locker rooms Renovate the weight room at Plaza Resurface or renovate the existing track at Plaza Update Plaza flooring in undisclosed location Update to band room including chairs, instrument lockers and music stands Upgrade wireless network infrastructure Prairie Point Elementary Renner Elementary Replace 295 tons of HVAC equipment Maintenance cycle for Roof Replacement and Repair Replace 116 tons of HVAC equipment It is 18 years old Replace tile playground with Bonded Rubber Surfacing Update Renner Staff Restroom Floor Russell Jones Education Center Enhance the exterior surveillance system Recable school to update technology infrastructure Upgrade district wide radio systems Southeast Elementary Install audio/visual system in one large space (gymnasium or cafeteria) Replace tile playground with Bonded Rubber Surfacing Support Services & Transportation Construction on Support Services & Transportation facility ( ) Technology Technology Upgrades district wide (Separate into Individual Items) Union Chapel Elementary Replace tile playground with Bonded Rubber Surfacing Walden Middle School Construction of Walden Middle School 149

66 SUMMARY OF BUDGET TOTAL REVENUES AND EXPENDITURES The following is a summary of the budgeted revenue and expenditure activity by fund for REVENUE EXPENDITURES FISCAL YEAR BALANCE FUND Fund 001 Incidental 108,954,272 69,105,058 39,849,214 Fund 002 Special Revenue 47,807,506 83,580,008 35,772,502 Fund 003 Debt Service 11,719,980 21,868,376 10,148,396 Fund 004 Capital Projects 30,676,371 78,688,737 48,012,366 Grand Total 199,158, ,242,179 54,084,050 The fiscal year end balance of $39.8 million in Fund 001 is typical as most district revenue (i.e. local taxes) is placed in Fund 001; the district maintains a fund balance of approximately 18 to 22%. State regulations allow for transfers from Fund 001 to Fund 002 via the Zero Teachers Fund Balance Transfer to avoid deficits in Fund 002. A transfer of $35.7 million from Fund 001 to Fund 002 will zero out Fund 002 at fiscal yearend. The negative balance in Fund 003 is the result of an escrowed payment received in and paid in Fund 003 is anticipated to have an $8.5 million balance at the end of the fiscal year. The use of fund balance in all funds is both strategic and planned, and each use contributes to ending the school year within acceptable operating, debt service and capital fund balances. State regulations also allow for limited transfers from Fund 001 to Fund 004 via the Greater of $162,326 or 7% x SAT x Prior Year WADA transfer, which allows the district to transfer over $4.0 million dollars annually from the operational fund to the capital projects fund. The district also will utilize existing fund balances within Fund 004 to cover capital costs. 150

67 SUMMARY OF BUDGET TOTAL REVENUES AND EXPENDITURES The following is a summary of the budgeted revenue and expenditure activity by fund for REVENUE EXPENDITURES FISCAL YEAR BALANCE FUND Fund Incidental 108,954,272-69,105,058 39,849,214 Fund Special Revenue 47,807,506-83,580,008-35,772,502 Fund Debt Service 11,719,980-21,868,376-10,148,396 Fund Capital Projects 30,676,371-78,688,737-48,012,366 Grand Total 199,158, ,242,179-54,084,050 The fiscal year-end balance of $39.8 million in Fund 001 is typical as most district revenue (i.e. local taxes) is placed in Fund 001; the district maintains a fund balance of approximately 18 to 22%. State regulations allow for transfers from Fund 001 to Fund 002 via the Zero Teachers Fund Balance Transfer to avoid deficits in Fund 002. A transfer of $35.7 million from Fund 001 to Fund 002 will zero out Fund 002 at fiscal yearend. The negative balance in Fund 003 is the result of an escrowed payment received in and paid in Fund 003 is anticipated to have an $8.5 million balance at the end of the fiscal year. The use of fund balance in all funds is both strategic and planned, and each use contributes to ending the school year within acceptable operating, debt service and capital fund balances. State regulations also allow for limited transfers from Fund 001 to Fund 004 via the Greater of $162,326 or 7% x SAT x Prior Year WADA transfer, which allows the district to transfer over $4.0 million dollars annually from the operational fund to the capital projects fund. The district also will utilize existing fund balances within Fund 004 to cover capital costs. 150

68 OPERATING REVENUE AND EXPENDITURES REVENUE EXPENDITURES BALANCE FUND Fund Incidental 108,954,272-69,105,058 39,849,214 Fund Special Revenue 47,807,506-83,580,008-35,772,502 Fund Capital Projects 5,322,470-11,342,237-6,019,767 Grand Total 162,084, ,027,303-1,943,055 The fiscal year-end balance of $39.8 million in Fund 001 is typical as most district revenue (i.e. local taxes) is placed in Fund 001; the district maintains a fund balance of approximately 18 to 22%. State regulations allow for transfers from Fund 001 to Fund 002 via the Zero Teachers Fund Balance Transfer to avoid deficits in Fund 002. A transfer of $35.7 million from Fund 001 to Fund 002 will zero out Fund 002 at fiscal yearend. State regulations also allow for limited transfers from Fund 001 to Fund 004 via the Greater of $162,326 or 7% x SAT x Prior Year WADA transfer, which allows the district to transfer over $4.0 million dollars annually from the operational fund to the capital projects fund. The district also will utilize existing capital fund balances within Fund 004 to capital costs. The use of fund balance in all funds is both strategic and planned, and each use contributes to ending the school year within acceptable operating, debt service and capital fund balances. 151

69 DISTRICT DEBT DEBT DEBT HISTORY The Park Hill School District aggressively expanded instructional classroom capacity to deal with the increasing student enrollment over the last 20 years. In that time, the district has grown from 8,652 students to 11,458. During this time frame the district has constructed and opened four elementary schools (English Landing, Prairie Point, Hawthorn and Tiffany Ridge), remodeled Congress Hall, converting it to Congress Middle School, and opened the second high school (Park Hill South High School). Additionally, the district expanded and remodeled Park Hill High School and Plaza Middle School. In December 2005, the Board of Education adopted a resolution to fund major components of the plan with a $33,000,000 bond, requiring a vote of the district patrons. In April 2006, district voters passed the bond issue with 77% approval. The proceeds of the bond have been spent for the Gerner Family Early Education Center (which opened in June, 2008), Russell Jones Education Center (opened in January, 2009), improved traffic flow and parking at selected campuses, remodeling outdoor facilities at the two high schools, front entrance remodels at selected schools, improved technology access, safety improvements and other capital projects. The district completed an 18-month capital planning process in the Fall, 2010 and presented a five and ten-year capital plan to the Board of Education. The Board of Education approved a recommendation for a $49.5 million bond issue in April, 2011 which voters passed by 80%. The proceeds of this bond were spent on a multitude of projects, including (a) constructing, furnishing and equipping Tiffany Ridge Elementary School, (b) constructing additional classroom space at Park Hill High School, Park Hill South High School and Congress Middle School, (c) improvements and renovations to various school buildings including technology infrastructure, fire alarm and security systems, lighting, roofing, parking, pavement, building access, electrical and restroom improvements and (d) the purchase of land. The district expensed all of these funds at of the conclusion of the school year. As the bond financing rates improved since the late 1990 s, the district aggressively refinanced and restructured debt. The refinancing and refunding has resulted in long-term savings of over $1,000,000 to the taxpayers of the Park Hill School District. In April, 2017, district taxpayers overwhelmingly passed (83.9%) a $110.0 million bond issue for the purpose of acquiring, constructing, renovating, improving, furnishing and equipping school facilities. More specifically, the projects within this bond included (a) constructing, furnishing and equipping a new middle school, (b) constructing, furnishing and equipping a new elementary school, (c) constructing, furnishing and equipping a facility for use by high school students, (d) constructing and equipping a facility for school support services, and (e) improvements and renovations to various school buildings. Construction of the district s Middle School #4 and Elementary School #11 are currently underway and both are planned to open in the Fall, 2019 ( school year). A high school facility is planned to open a year later. The timelines for other projects, including the construction of a new Support Services and Transportation facility, will be finalized after the sale of the first series of bonds. The first series of bonds authorized by voters in April, 2017 were sold in the Fall, 2017 ($87.7 million) to support these projects over a three-year period. The strategic sale of revenue bonds over time supports (a) the cash flow 152

70 necessary to construct the facilities within the timelines above; and (b) structure the debt over time as to maintain the district s current $ debt service levy per $100 of the assessed valuation of real and personal property, resulting in no tax increase for district taxpayers. The district s current debt service tax levy is the lowest in the greater Kansas City area. District staff and financial advisors also consider assessed valuation growth, the bond market, interest rates, and interest rate risk to determine the size and number of the bond sales, the total not to exceed the $110 million authorized by voters. For budgeting purposes, the budget document reflects a sale of $23.3 million in the Fall, DEBT SERVICE FUND The Debt Service Fund (Fund 003) ending balance on June 30, 2018 is expected to be approximately $18.7 million. During , the district anticipates debt service revenue to be $11.7 million and debt service expenditures to be $21.8 million. The expenditure includes an escrow payment from a refinance from a prior year. The fiscal yearend deficit in Fund 003 will be funded by fund balances within Fund 003, which can only be used to pay off future debt. The district has managed debt strategically over the last decade, resulting in the ability to issue $49.5 million in General Obligation Bonds after voter approval in April, 2011 without an increase to the existing debt service levy. Also, in April, 2017 voters approved the sale of $110 million in bonds, again with no anticipated tax increase to the debt service levy. State law limits school district bonded indebtedness to a maximum of 15% of assessed valuation. Based upon projected 2018 assessed valuation figures, it is anticipated that Park Hill will have a bonded indebtedness limit of over $250 million for The tables on the following pages summarize the district s current outstanding debt, including principal ($150.7 million) and anticipated interest ($57.6 million). The total debt to be paid, including interest, is $208.3 million to be paid through the school year. 153

71 PARK HILL BOND ISSUE HISTORY The district s bond history for current debt is summarized in the following table. This includes the sale of General Obligation bonds as well as several refinancing actions on prior debt. All voter approved issues have been sold. Bond Issue Election Authorized Amount Debt Remaining (Principal) Debt Remaining (Interest) Debt Retired Series 2018 No Election N/A $23,285,000 Second series of bonds from the April 4, 2017 bond issue. Series /4/2017 $110,000,000 $87,715,000 $87,715,000 $44,408,174 March, 2037 First series of bonds to be sold in Fall, Amount to be determined based on market variables. Purpose of Bonds: (a) constructing, furnishing and equipping a new middle school, (b) constructing, furnishing and equipping a new elementary school, (c) constructing, furnishing and equipping a facility for use by high school students, (d) constructing and equipping a facility for school support services, and (e) improvements and renovations to various school buildings Series 2016 No Election N/A $8,795,000 $8,830,000 $1,796,200 March, 2030 Purpose of Bonds: Refinance of a portion of 2011 bonds (see below). Series 2015 No Election N/A $20,110,000 $2,100,000 $233,050 March, 2025 Purpose of Bonds: Refinance of a portion of 2004 bonds (see below). Series 2013 No Election N/A $13,575,000 $9,125,000 $253,875 March, 2021 Purpose of Bonds: Refinance of a portion of 2004 bonds (see below). Series /5/2011 $49,500,000 $39,500,000 $38,500,000 $10,224,100 March, 2030 Purpose of Bonds: Remaining $39.5 million of approved $49.5 million (April, 2011). General Obligation Bonds. Construction of 10th Elementary School, additions to High Schools and Congress Middle School, front entrance remodels, technology, safety improvements, other capital improvements. Series /5/2011 $49,500,000 $10,000,000 $1,045,000 $459,926 March, 2023 Purpose of Bonds: $10 million of approved $49.5 million. General Obligation Bonds. Construction of 10th Elementary School, additions to High Schools and Congress Middle School, front entrance remodels, technology, safety improvements, other capital improvements. Series 2010 No Election N/A $4,595,000 $3,365,000 $203,200 March, 2020 Purpose of Bonds: Refinance of a portion of the Series 2001 bonds (see below). 154

72 BOND AMORTIZATION SCHEDULE (SUMMARY) The table below summarizes the total principal and interest payments due by fiscal year. Revenue generated from the debt service levy of $ is used in making these annual payments. Year Principal Interest Total Debt Service (Principal + Interest) ,055,000 5,029,743 11,084, ,370,000 4,810,817 11,180, ,075,000 4,665,305 9,740, ,110,000 4,533,056 9,643, ,445,000 4,365,194 9,810, ,825,000 4,183,743 10,008, ,245,000 3,938,036 10,183, ,660,000 3,670,799 10,330, ,085,000 3,444,899 10,529, ,505,000 3,167,399 10,672, ,925,000 2,956,149 10,881, ,375,000 2,689,249 11,064, ,875,000 2,423,186 11,298, ,380,000 2,068,186 11,448, ,865,000 1,786,786 11,651, ,375,000 1,490,836 11,865, ,920,000 1,153,649 12,073, ,495, ,289 12,288, ,095, ,206 12,503,206 Grand Total 150,680,000 57,578, ,258,

73 BOND AMORTIZATION SCHEDULE (DETAIL) The list of the district s current debt schedule appears below. The district s total debt entering the school year is $159,925,000 in principal and $57,578,525 in interest to be paid through This totals $208,258,525. School Year Series 2010 Series 2011 Series 2012 Series 2013 Series 2015 Series 2016 Series 2017 Grand Total Principal 1,650, ,000 3,540,000 6,055,000 Interest 134, ,588 1,316, ,063 43,594 3,060,836 5,029, Principal 1,715,000 1,070,000 3,585,000 6,370,000 Interest 68,600 30,612 1,290,113 84,813 43, ,250 3,060,836 4,810, Principal 3,075,000 2,000,000 5,075,000 Interest 30,612 1,258,013 40,000 43, ,250 3,060,836 4,665, Principal 295,000 3,075, ,000 1,090,000 5,110,000 Interest 30,613 1,165,763 43, ,250 3,060,836 4,533, Principal 750,000 2,935, ,000 1,190,000 5,445,000 Interest 22,501 1,073,513 30, ,250 3,006,336 4,365, Principal 3,160, , ,000 1,320,000 5,825,000 Interest 985,463 19, ,250 2,946,836 4,183, Principal 3,415, , ,000 1,440,000 6,245,000 Interest 859,063 8, ,250 2,880,836 3,938,

74 School Year Series 2010 Series 2011 Series 2012 Series 2013 Series 2015 Series 2016 Series 2017 Grand Total Principal 3,660,000 1,130,000 1,870,000 6,660,000 Interest 722, ,500 2,808,836 3,670, Principal 3,910,000 1,255,000 1,920,000 7,085,000 Interest 612, ,900 2,715,336 3,444, Principal 4,170,000 1,390,000 1,945,000 7,505,000 Interest 456,263 91,800 2,619,336 3,167, Principal 4,440,000 1,525,000 1,960,000 7,925,000 Interest 331,163 64,000 2,560,986 2,956, Principal 4,725,000 1,675,000 1,975,000 8,375,000 Interest 153,563 33,500 2,502,186 2,689, Principal 8,875,000 8,875,000 Interest - 2,423,186 2,423, Principal 9,380,000 9,380,000 Interest 2,068,186 2,068, Principal 9,865,000 9,865,000 Interest 1,786,786 1,786, Principal 10,375,000 10,375,000 Interest 1,490,836 1,490,

75 School Year Series 2010 Series 2011 Series 2012 Series 2013 Series 2015 Series 2016 Series 2017 Grand Total Principal 10,920,000 10,920,000 Interest 1,153,649 1,153, Principal 11,495,000 11,495,000 Interest 793, , Principal 12,095,000 12,095,000 Interest 408, ,206 Grand Total 3,568,200 1,504,926 48,724,100 9,378,875 2,333,050 10,626, ,123, ,258,

76 DEBT SERVICE LEVY DISCUSSION The debt service tax levy comprises a portion of a school district s total tax levy. The debt service tax levy can only be used to repay principal and interest on general obligation bonds sold in prior years. Over the last decade, the Park Hill School District s debt service tax levy has dropped from $ to the current rate of $ per $100 of assessed valuation. Of twelve greater Kansas City, Missouri suburban school districts, Park Hill School District currently has the lowest debt service levy Debt Service Tax Levy The impact of the debt service tax levy on the average homeowner results in a lower tax bill. The 2017 median home value in the Park Hill School District is estimated to be $229,253. For a homeowner of a $229,253 home in each school district, Park Hill School District has the lowest property tax bill ($266), more than half the cost of similar sized school districts in the Northland (Liberty, North Kansas City). 159

77 Annual Cost of School District Debt to Taxpayer Based on PHSD Median Home Value ($229,253) $567 $562 $556 $575 $479 $466 $541 $574 $ $392 $ $ OTHER OBLIGATIONS LEASES Included in the budget are lease agreements with Park University for the use of underground space for district Support Services and warehousing. The lease for underground space for Support Services and warehousing costs approximately $106,575 annually. Also included in the budget is space leased for technology support, as well as leasing of 12 mobile units (24 classrooms) at selected schools. The district has also entered into a three-year lease for the LEAD Innovation Studio. 160

78 FUND BALANCES OVERVIEW OF FUND BALANCE On the following pages are tables detailing the statement of revenue, expenditures and changes in fund equity for through The values for revenue, expenditures, and transfers for and are estimates. The balances and fund balance percentage for June 30, 2018 and beyond are estimates based upon these projections. Actual values for will become known after the close of the fiscal year on June 30, Actual values for will become known in June, Operating fund balance is calculated at the end of a fiscal year by dividing the sum of unrestricted balances in Fund 001 and Fund 002 by the sum of expenditures in Fund 001 and Fund 002 for that same fiscal year. The projected ending operating fund balance for is approximately 21.9% or 9 weeks operating cash. Per a commitment to the district community in 2002, the operating fund balance has grown over the last ten years and allows the district to meet cash flow demands throughout the school year, as well as contributes to the exemplary bond rating given the district, and monies for contingencies. Fund balance also allows for economic stability for the district. The Park Hill Board of Education has established an expected range for operational fund balance at 18 to 22%. In years leading up to , the Board of Education has strategically built balances beyond this range in order to prepare for deficit budgets in future years, specifically in support of expenses related to the increased technology for students. 161

79 FUND BALANCES The values for balances, revenue, expenditures, and transfers for through are based on actual data values are estimates values reflect the budgeted amounts through are projected values. Operating Funds DESE Funds 001 & 002 PHSD Funds 001, 002, 005, 007, Opening Balance (July 1) 28,708,084 30,503,818 30,468,903 31,819,214 31,596,092 32,672,804 32,196,603 31,449,088 3 Revenue (July 1 - June 30) 131,827, ,942, ,509, ,334, ,761, ,948, ,982, ,236,383 4 Expenditures (July 1 - June 30) (125,291,955) (130,081,445) (136,591,184) (144,057,712) (152,685,066) (157,425,003) (160,230,301) (165,413,175) 9 Transfers (July 1 - June 30) (4,740,096) (4,896,021) (4,567,800) (4,500,000) (3,000,000) - (500,000) - # Ending Balance (June 30) 30,503,818 30,468,903 31,819,214 31,596,092 32,672,804 32,196,603 31,449,088 32,272,296 # Unrestricted Balance (June 30) 29,699,506 30,177,430 31,819,214 31,596,092 32,672,804 32,196,603 31,449,088 32,272,296 Operating Fund Balance 23.7% 23.2% 23.3% 21.9% 21.4% 20.5% 19.6% 19.5% Debt Service Funds DESE Funds 003 PHSD Funds Opening Balance (July 1) 9,868,480 10,149,910 12,671,861 20,837,412 18,737,830 8,589,434 9,000,965 11,079,192 3 Revenue (July 1 - June 30) 9,638,142 30,566,506 19,573,451 10,808,697 11,719,980 11,592,348 11,818,532 11,937,328 4 Expenditures (July 1 - June 30) (9,356,713) (28,044,555) (11,407,901) (12,908,279) (21,868,376) (11,180,817) (9,740,305) (9,643,056) 9 Transfers (July 1 - June 30) # Ending Balance (June 30) 10,149,910 12,671,861 20,837,412 18,737,830 8,589,434 9,000,965 11,079,192 13,373,464 # Unrestricted Balance (June 30) 10,149,910 12,671,861 11,582,311 9,482,729 8,589,434 9,000,965 11,079,192 13,373,

80 Capital Funds DESE Funds 004 PHSD Funds Opening Balance (July 1) 10,641,900 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 3 Revenue (July 1 - June 30) 6,635,612 9,984,764 9,112,953 5,030,035 5,322,470 5,259,443 5,379,636 2,462,438 4 Expenditures (July 1 - June 30) (11,873,837) (13,936,628) (12,001,877) (5,898,218) (11,342,237) (9,541,486) (8,455,103) (4,179,059) 9 Transfers (July 1 - June 30) 4,740,096 4,896,021 4,567,800 4,500,000 3,000, ,000 - # Ending Balance (June 30) 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804,724 # Unrestricted Balance (June 30) 10,143,770 11,087,928 12,766,805 16,398,622 13,378,855 9,096,812 6,521,345 4,804,724 Capital Fund Balance* 101.3% 154.5% 137.3% 101.9% 66.7% 65.0% *As Average of Last 3 Years Expenditures Bond Funds DESE Funds 004 PHSD Funds Opening Balance (July 1) 13,224,798 5,582,598 5,510,781 (0) 76,293,344 34,300,745 4,127,685-3 Revenue (July 1 - June 30) 7,717 11,461 12,923 90,841,743 25,353, ,951 44,238-4 Expenditures (July 1 - June 30) (7,649,916) (83,279) (5,523,704) (14,548,399) (67,346,500) (30,350,011) (4,171,923) - 9 Transfers (July 1 - June 30) # Ending Balance (June 30) 5,582,598 5,510,781 (0) 76,293,344 34,300,745 4,127, # Unrestricted Balance (June 30) 5,582,598 - (0) Under GASB 54 classifications, balances in Fund 003 are restricted for debt payments in future years. guidelines imposed upon each fund. All other balances are unrestricted but must be spent per legal 163

81 SIGNIFICANT FUND BALANCE TRENDS, EVENTS AND INITIATIVES OPERATING FUND BALANCE Operational fund balance is calculated as the balance in Fund 001 divided by the prior year s expenditures in Funds 001 and 002. As a part of a pledge to voters in April, 2002, the district has increased the operational fund balance from 9.6% of operating expenditures in It is anticipated that the district s unrestricted operating fund balance will increase from $31.5 million (on July 1, 2018) to $32.6 million at the completion of the school year (June 30, 2019). This reflects an operational fund balance decrease from 21.9% to 21.4% (the percentage is a function of prior year expenditures). The strategic use of fund balance has been a long-standing tradition of the Park Hill School District Board of Education. The graph below depicts the districts history and forecasts of operating fund balance through the school year Ending Operating Fund Balance Percentage 30.0% ACTUAL PROJECTIONS 25.0% 20.0% TARGET = 18 to 22% 15.0% 10.0% 5.0% 0.0% 164

82 CAPTIAL FUND BALANCE The Park Hill School District also closely monitors capital funds annually and capital fund balances. To assist the district in annual and ongoing capital projects, the district maintains a capital fund balance. The district Financial Focus Area Collaborative Team (FACT), a team made up of district staff and key stakeholders, has established a target for capital fund balance between 65 and 85% of the average of the prior 3-years actual capital expenditures. This fund balance allows the district to address the planned capital needs without revenues from the sale of general obligation bonds. The capital needs of the district vary greatly from year to year as maintenance cycles for facility upkeep (i.e. school roofs, flooring, parking lots) converge with technology maintenance cycles (i.e. laptop, technology equipment replacements), and other one-time capital needs (playground upkeep). Ending Capital Fund Balance Percentage is calculated by dividing the amount of remaining non-restricted capital funds at the end of each fiscal year by the capital expenditures for that year. For example, if on June 30 the district had a capital fund balance of $5 million and had $10 million in capital expenditures that year, the Ending Capital Fund Balance is 50%. Ending Capital Fund Balance Percentage 1.6 ACTUAL PROJECTIONS TARGET = 65% to 85% Ending Capital Fund Balance Percentage is calculated by dividing the amount of remaining non-restricted capital funds at the end of each 0 165

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