Phil Frei Director of Business & Finance July 22, 2014

Transcription

1 Phil Frei Director of Business & Finance July 22, 2014

2 Budget Documents for Tonight Line-by-line copies of both revenue and expenditure budgets were distributed tonight and posted on the website. Each line includes the prior two years of spending: budget year-to-date info proposed budget percent increase from to budget Community members prefer this format.

3 Budget Documents for Tonight (cont d) Please remember the amounts are not final or audited. More expenses will get coded to as June bills arrive. Therefore, use caution and do not assume these numbers are final! A DPI official budget format will be distributed when the financial audit is completed. The School Board will use this to approve the Proposed Budget.

4 Looking Back to As of 7/22/14 (Before Audit) Fund 10 Revenue: $79,430,000 Fund 10 Expense: $78,530,000 Increase to Fund Balance: $900,000 Committed to Ashley Field Bleachers: $100,000 Committed to STAR Assessment: $65,000 Unreserved increase to fund balance: $735,000 Later in this presentation, you will see how this surplus will be used to lower the tax levy percent to 0%.

5 Revenue Cap Calculation The State Budget is in the second year of its biennial budget. This makes the revenue cap easier to calculate. The projected amount under the revenue cap for the budget is $1.4M. Historically the amount under revenue cap: $2.7M $2.7M $1.5M $1.4M The State is increasing the spending amount allowed per pupil by $75.

6 Equalization Aid The Department of Public Instruction (DPI) July 1, 2014 aid estimate is $42,389,435; or a $3.3M increase, which is an 8.4% increase. The current budget reflects the July 1, 2014 estimate.

7 General Fund Revenues There are no other major changes in the revenue budget. The overall general fund revenue budget is $82.3M, which is balanced with expenditures.

8 Enrollment* The Preliminary Budget is based on an increase of 59 students, or 0.8%. Enrollment is based on projections provided by the University of Wisconsin Applied Populations Lab. Administration will continue to track enrollment over the summer and adjust staffing accordingly. Administration added a kindergarten teacher on 7/9/14 due to the higher kindergarten enrollments. * All student enrollments are based on full-time equivalency and are counted on the 3 rd Friday in September.

9 Existing Programs The Preliminary Budget maintains funding with no cuts to existing programs or building/department budgets. The Preliminary Budget fully funds the expanded busing the electors approved last year and was implemented in January 2014.

10 Budget Initiatives from (To be implemented in ) On May 13, 2013, the School Board approved: 1. Adding more club advisors to the schools; $8, Adding girls Lacrosse as a district sponsored sport; $7,854 Total: $16,554

11 Additions to the Preliminary Budget Enrollment driven staffing increase: 10.9 FTE* Elementary Assistant Instructional Leaders: 3.5 FTE Transfer of Service (special ed): 2.3 FTE Up 31 students since September 2013 Assistant Superintendent (Operations & Continuous Improvement): 2.0 FTE * FTE = Full Time Equivalency

12 Existing Class Sizes All staffing ratios stay the same; i.e., no higher class-size ratios Class Size Guidelines (non-sage): K: st : nd : rd : th : th : Middle School average ratio: 26:1 High School average ratio: 25:1

13 Salaries A placeholder in an amount equal to 3.0% of last year s salaries has been included in this preliminary budget. Professional Educators - $900,000 (settled) Administrative Support - $52,000 (as yet unresolved) Support Staff - $279,000 (as yet unresolved) Unresolved for , administrative salary placeholder amount of $55,000 equal to 2014 cost of living plus projected contractual "Increased Professional Qualifications." $45,000 for increases in the tech ed and agriculture salaries to keep pay competitive with other districts.

14 Benefits Insurance related plans Health insurance premium to increase 8.0%, or $600,000. Dental insurance premium to increase 9.0%, or $70,000. Other benefits On July 1, the district learned the WRS rates will decrease for employers by 0.2% on January 1, This is an estimated savings of $40,000.

15 Other Spending Categories Budgeted based on need and/or past history. For example, utilities budgets are based on a three-year average of spending. Transportation is based on budget needs and contractual increases.

16 Overall General Fund Spending $82.3M; which is a balanced budget with revenues.

17 Analyzing Last Year s Budget By analyzing last year s budget surplus, we are able to make adjustments to the budget. These adjustments helped lower the need for tax dollars. Specifically: 1. Increase the budget for federal reimbursement of Medicaid payments. 2. Increase the budget for rental income. 3. Decrease the budget for 4K payments to centers. 4. Increase the budget for EEN aid.

18 Debt Levy The debt levy is for voter-approved building projects. Based on the debt payoff schedule, the debt levy will increase by $290,000, or 2.3%. The State Trust Fund was completely paid off in ! In the last four years, the district has saved $7,500,000+ in interest cost by refinancing bonds.

19 Projected Total Levy Increase In , the total tax levy increased 2.5%. General Fund Levy Decrease: $290,000; -0.8% Debt Levy Increase: $290,000; 2.3% Total Levy Increase: $0

20 Mill Rate Current projections have a 0% increase in property value. (The City of Sun Prairie is projecting a small increase.) With a 0% property value increase, the mill rate would increase 0%. The impact on a $200,000 home would be a increase in school taxes of $0. The % increase will vary among the 11 district municipalities depending on each municipality's change in value compared to the other municipalities change in value. The School District has no control over this and can only control the overall tax increase or decrease for the entire district.

21 Future Budget Work Continue to monitor and budgets and make adjustments to the budgets as needed. Please remember that some adjustments will happen. For example, utilities will be adjusted based on end-ofyear totals. In August, the School Board approves the Proposed Budget. On September 29, the district presents the Proposed Budget to electors at the Annual Meeting. (Electors will approve a tax levy at the Annual Meeting.) By October 31, the School Board adopts the Original Budget.

22 Questions?