KIMBERLY AREA SCHOOL DISTRICT 2015 ANNUAL MEETING

Transcription

1 2015 ANNUAL MEETING Monday September 28, :30 PM - Budget Hearing 7:15 PM - Annual Meeting KIMBERLY AREA SCHOOL DISTRICT ADMINISTRATIVE BUILDING 425 S. Washington Street Combined Locks, WI 54113

2 INTRODUCTION The preparation of this annual meeting booklet and the information it contains is a lengthy process involving district staff, the business office and the Board of Education. We have included the information required by state statute, as well as other information that the district feels is important to share with its citizens. We welcome your questions regarding the operation of the school system and its fiscal policies. Therefore, pursuant to Wisconsin State Statute , the ANNUAL FINANCIAL REPORT OF THE BOARD OF EDUCATION of the KIMBERLY AREA SCHOOL DISTRICT for the year ending June 30, 2015 is presented in the following pages. For the KIMBERLY AREA SCHOOL DISTRICT Robert S. Mayfield, Ed.D. Superintendent of Schools

3 TABLE OF CONTENTS Page DIRECTORY OF SCHOOL BOARD & ADMINISTRATION ORDER OF BUSINESS/AGENDA FOR THE ANNUAL MEETING TREASURER S REPORT BUDGET MESSAGE BUDGET ASSUMPTIONS BUDGET HIGHLIGHTS MULTI-YEAR TAX COMPARISON GENERAL FUND REVENUES GENERAL FUND EXPENDITURES REVIEW OF EXPENDITURE INCREASES/DECREASES BY OBJECT SPECIAL PROJECTS, DEBT SERVICE & CAPITAL PROJECT FUNDS CAPITAL PROJECTS, FOOD SERVICE & EMPLOYEE BENEFIT TRUST COMMUNITY SERVICE AND ALL FUNDS COMBINED TAX LEVY, PROJECTED EQUALIZED VALUATIONS & TAX RATE STAFFING MINUTES OF THE SEPTEMBER 22, 2014 ANNUAL MEETING

4 SCHOOL BOARD The present School Board is comprised of seven members elected to three-year terms. Members Term Expires Dr. Montgomery Elmer, President April, 2017 Brad Siebers, Vice President April, 2018 Deb Roberts, Clerk April, 2016 Penny Hoh, Treasurer April, 2016 Ammie Ebben, Member April, 2017 Mary Pribbenow, Member April, 2018 Chuck Rundquist, Member April, 2018 Administration Robert Mayfield Superintendent Holly Prast Assistant Superintendent Becky Hansen Director, Business Services Dawn Thomas Director, Human Resources Tim Fosshage Director, Pupil Services Ron Simonis Director, Curriculum Mike McDermot Director, Technology Joe Harvey Director, Building & Grounds Mike Rietveld Principal, Kimberly H.S. Lori Verhagen Assoc. Principal, Kimberly H.S. Steve Verboomen Asst. Principal, Kimberly H.S. Jason Nate Asst. Principal, Kimberly H.S. Eric Brinkmann Principal, J.R. Gerritts M.S. Rob DeLain Asst. Principal, J.R. Gerritts M.S. Hercules Nikolaou Principal, Janssen Elementary Sean Fitzgerald Principal, Sunrise Elementary John Schultz Principal, Mapleview Intermediate Dave Lamers Principal, Woodland Intermediate Timothy Doleysh Principal, Woodland Elementary Jonathan Peterson Principal, Westside Elementary All school districts are legal agencies of the State. The School Board s authority and responsibilities to operate the school district are defined by the Wisconsin Constitution and Statutes. Regular school board meetings are held on the second and fourth Mondays of the month. The meetings are held in the Venture Room of the Kimberly District Administrative Building, 425 S. Washington Street in Combined Locks, WI at 6:30 P.M. The public is cordially invited to attend. 1

5 BOARD PROPOSED GUIDELINES FOR THE Monday, September 28, 2015 ANNUAL MEETING 1. Each person is asked to sign the register, indicate their address, check if they are a Kimberly Area School District resident, and indicate if they are under the age of Only school district residents of 18 years or older are eligible to vote on the issues presented., 3. If you wish to address the chairperson, do so by stating your name and address. 4. The chairperson may limit discussion depending upon the number of people wishing to speak, and in an effort to conduct an effective and orderly meeting. 5. Questions on parliamentary procedure will be referred to the board appointed parliamentarian. 6. Any motions submitted under new business shall be given to the chairperson in writing, signed by the person making the motion. This shall be completed prior to the assembly being asked to take action on the motion. 7. Methods for voting on the issues before the electorate shall be as the chairperson determines, unless otherwise directed by a specific motion on a specific issue. 8. Copies of the minutes are attached and the chairperson will recognize a motion to dispense with the reading of the minutes for the September 22, 2014 Annual Meeting. 2

6 Class 2 Notice Annual School District Meeting Of The Kimberly Area School District Villages of Combined Locks, Harrison and Kimberly Towns of Harrison and Buchanan and City of Appleton Notice is hereby given to the qualified electors of the Kimberly Area School District that the Annual Meeting of said District will be held on: Monday, September 28, 2015 Kimberly Area School District - Administrative Offices 425 S Washington St Combined Locks WI REGULAR MEETING: BUDGET HEARING: ANNUAL MEETING: 6:00 PM 6:30 PM 7:15 PM Agenda: 1. Call to Order 2. Elect Chairman for the Meeting 3. Board Suggested Meeting Guidelines 4. Minutes of the Annual Meeting, Monday, September 22, Board President s Report 6. Superintendent s Report 7. Treasurer s Report 8. Set Salaries of School Board & Authorize Reimbursement for Expenses Incurred 9. Adopt tax levy (8)(9) Annual Meeting Date and Time (September 26, 2016) 11. Authorize the District to purchase a house located at 418 Park Street and lot for future school needs and to authorize the School Board and Administration to take all necessary steps to acquire the real estate 12. Old Business 13. New Business 14. Adjournment 3 Debbie Roberts KASD Board Clerk Publish: September 16, 2015 September 23, 2015

7 AGENDA: Kimberly Area School District ANNUAL SCHOOL DISTRICT MEETING Monday, September 28, 2015 I. 6:30 PM Budget Hearing 1. Meeting called to order. President, Dr. Montgomery Elmer 2. Review of budget. Director of Business Services, Becky Hansen Motion: Resolved that the budget hearing be closed. By: : seconded by: Vote:. II. 7:15 PM Annual Meeting 1. Meeting called to order. (Debbie Roberts, Clerk, presiding) Pledge of Allegiance 2. Elect chairman for the meeting (1). a. Nominations are from the floor: b. Motion: To close nominations and cast a ballot for. By: : seconded by: Vote:. c. Motion: To destroy ballots. By: : seconded by: Vote:. 3. Submit board approved and recommended guidelines for Annual Meeting approval (page 2 of Annual Meeting Booklet). 4

8 Motion: To accept the recommended guidelines for the Annual Meeting. By: : seconded by: Vote:. 4. Dispense with reading the minutes of the Annual Meeting, Monday, September 22, 2014 (Attached to the back of this booklet). Motion: To dispense with the reading of the last annual meeting minutes of Monday, September 22, By: : seconded by: Vote:. 5. Board President s Report (Dr. Montgomery Elmer). 6. Superintendent s Report (Dr. Robert Mayfield). 7. Treasurer s Report (Becky Hansen) (4). Motion: Resolved that the Treasurer s Report be accepted. By: : seconded by: Vote:. 8. Set salaries of school board members and authorize reimbursement for expenses incurred (3). Motion: Resolved that salaries of school board members be set at: President ; Clerk ; Treasurer ; Members ; and authorize reimbursement for expenses incurred. By: : seconded by: Vote:. Present Salaries President - $3150 Clerk - $3150 Treasurer - $3150 Members - $ Adopt tax levy (8)(9). Board President, Dr. Montgomery Elmer, will present the budget to the electors. Motion: Resolved that the tax levy of $ presented to the electors be adopted as printed. By: : seconded by: Vote:. 5

9 10. Annual Meeting Date and Time (1)(a) (September 26, 2016). Motion: To authorize the School Board to set the date and time of the 2016 Annual Meeting of September 26, By: : seconded by: Vote:. 11. Old Business 12. New Business 13. Adjournment (2). Motion: Resolved that this meeting adjourn as of PM, September 28, By: : seconded by: Vote:. 6

10 TREASURER'S REPORT FOR THE YEAR ENDED JUNE 30, 2015 Fund Balance - All Funds July 1, 2014 $22,056,895 Add: Revenues $60,264,700 Less: Expenditures $59,728,736 Fund Balance - All Funds June 30, 2015 $22,592,861 Fund Balances consist of: Increase June June (Decrease) Cash 1 General Fund (Fund 10) $8,687,596 $10,178,171 $1,490,575 Special Revenue Trust Fund (Fund 21) $284,423 $410,061 $125,638 Technology Grant & Special Ed (Fund 23/27) $352,556 $193,016 -$159,540 Debt Service Funds (Fund 38/39) $0 $0 $0 Capital Projects (Fund 41/45/46/49) $123,752 $0 -$123,752 Food Service (Fund 50) -$163,181 $860 $164,041 Student Activities (Fund 60) $179,432 $170,494 -$8,938 Private Benefit Trust (Fund 71, 72) $34,268 $32,912 -$1,356 Employee Benefit Trust (Fund 73) $9,602,609 $9,735,720 $133,111 Community Service (Fund 80) $75,906 $14,691 -$61,215 Total Cash $19,177,362 $20,735,926 $1,558,564 Investments 2 General Fund (Fund 10) $0 $0 $0 Special Revenue Trust Fund (Fund 21) $0 $0 $0 Debt Service Funds (Fund 38/39) $485,787 $424,916 -$60,871 Capital Projects (Fund 41/45/46/49) $1,718,637 $1,922,302 $203,665 Food Service (Fund 50) $358,820 $250,914 -$107,906 Community Service (Fund 80) $0 $0 $0 Total Investments $2,563,244 $2,598,132 $34,887 Taxes/Other Receivables/Prepaid Expenses General Fund (Fund 10) $4,288,892 $4,144,862 -$144,031 Special Revenue Trust Fund (Fund 21) $3,443 $335 -$3,108 Technology Grant & Special Ed (Fund 23/27) $0 $0 $0 Capital Projects (Fund 41/45/46/49) $110,964 $85,891 -$25,073 Food Service (Fund 50) $76,754 $77,409 $655 Community Service (Fund 80) $435 $0 -$435 Total Receivables $4,480,488 $4,308,497 -$171,992 Due From Other Funds/Districts/State/Fed Govt. General Fund (Fund 10) $1,136,053 $996,662 -$139,392 Technology Grant & Special Ed (Fund 23/27) $157,729 $173,770 $16,041 Capital Projects (Fund 41/45/46/49) $0 $262,192 $262,192 Food Service (Fund 50) $0 $0 $0 Total Due $1,293,782 $1,432,624 $138,842 Other Current Assets Capital Projects (Fund 41/45/49) $0 $0 $0 Liabilities (Money Owed) General Fund (Fund 10) $4,695,779 $5,879,889 $1,184,110 Special Revenue Trust Fund (Fund 21) $724 $731 $7 Technology Grant & Special Ed (Fund 23/27) $409,521 $265,822 -$143,700 Capital Projects (Fund 41/45/46/49) $113,335 $90,101 -$23,235 Food Service (Fund 50) $58,141 $72,480 $14,339 Student Activities (Fund 60) $179,432 $179,432 $0 Employee Benefit Trust (Fund 73) $0 $0 $0 Community Service (Fund 80) $1,048 $2,800 $1,752 Total Liabilities $5,457,981 $6,491,255 $1,033,274 Fund Balances General Fund (Fund 10) $9,416,763 $9,439,805 $23,042 Special Revenue Trust Fund (Fund 21) $287,142 $409,665 $125,638 Technology Grant & Special Ed (Fund 23/27) $100,763 $100,964 $201 Debt Service Fund (Fund 38/39) $485,787 $424,916 -$60,871 Capital Projects (Fund 41/45/49) $1,840,018 $2,180,284 $340,266 Food Service (Fund 50) $214,253 $256,703 $42,450 Student Activities (Fund 60) $0 $0 -$8,938 Private Benefit Trust (Fund 71,72) $34,268 $32,912 -$1,356 Employee Benefit Trust (Fund 73) $9,602,609 $9,735,720 3 $133,111 Community Service (Fund 80) $75,293 $11,891 -$63,402 Total of All Fund Balances $22,056,896 $22,592,861 $530,142 1 Includes checking accounts, money on hand and deposits with fiscal agents. 2 Money invested to earn income. 3 See Budget Message for an explanation. 7

11 BUDGET MESSAGE THE YEAR IN REVIEW 2014/15 Above Average Student Achievement at Below Average Cost - As evidenced by our standardized test scores, the District continues to be one of the highest achieving Districts in the Fox Valley, as well as the State. Kimberly High School was also recognized by the Washington Post as one of America s most challenging high schools for the 5 th consecutive year. We were ranked as 18 th in the State and the only school in the Fox Valley recognized by the Post. In addition, KHS had a record number of AP Scholar Recognition with 131 KHS students being recognized. Slight increase in Revenue Limit- The District received a $75.00 per student increase under State Revenue Limit Controls. The District also received an additional one-time $75.00 per student increase in State Aid to equal $150 per student. Combined, these two increases represented approximately a 1.5% increase in allowable revenue per student. Lower Taxes and Lower Tax Rate - The Tax Levy decreased by $180,905 or -1.08%. In addition, property values increased by almost 1%. These two factors led to a decrease in the tax rate (amount of taxes a home owner pays for each $1000 of property value) of -$0.21 or -2.03%. Health Insurance Updates The district developed and built the Kimberly Area School District Health and Wellness Center to open for the school year to further assist with controlling our health insurance costs. In addition, employees and spouses once again participated in the Personal Health Assessment to maximize their premium discount and assist them in awareness of their ongoing health. Facility Improvements The major projects for were the renovation of Holy Spirit Parish lower level to accommodate our 4k students and allow for all day 5k to take place in Kimberly. In addition, the Kimberly Area School District Health and Wellness Clinic was completed to assist with lowering ongoing health costs. The gym floor at JRG was replaced as well as the library was renovated. The Athletic Complex Soccer Bleachers were replaced. Finally, the high school technology education classroom was renovated and updated to be ADA compliant and meet Fire Code. Technology Improvements The District is continuing to improve its infrastructure to provide mobility and access to information for students anywhere within the District. The computers at the Administration building and Janssen were replaced as well as there was a large refresh of our Chromebooks (mobile computing devices) and insurance was purchased for these devices. Most likely the largest project for was the migration to the new student software information system, Infinite Campus. The goal of this major initiative is to provide tools to streamline student administration, enable stakeholder collaboration and personalize learning. 8

12 Enrollment higher causing an increase in Aid and Levy Limit Authority - The total student count for students residing in the district increased by 58 students. This allowed us to increase our revenue by $175,813 and will help us in the future as the tax levy uses a 3 year average for student membership. It also increases our aid for as the equalized aid amount is based on prior year numbers. In addition we had an increase in students from other districts who attend Kimberly under Open Enrollment. Hard Decisions Made The District made a tough decision to close Kornerstone Charter School in Unfortunately, the enrollment was not growing as hoped and it was not financially feasible to keep the school up and running any longer. WHAT S NEW IN 2015/16 No additional Dollars from the State The District will not be receiving any new money from the state in The Biannual Budget approved by the governor gives no increase in the revenue limit and the categorical aid amount per pupil will remain the same at $150 per student. We will be seeing an increase in aid from the state, but that is simply due to the increase in our enrollment. Lower Taxes - The Tax Levy is estimated to decrease by approximately -$162,379 or -.98%. Health Insurance The district was able to negotiate a.5% increase in health insurance costs by changing vendors. In addition, there will be a cap placed on the amount the district contributes to the district sponsored Health Reimbursement Account. Finally, the district completed the Kimberly Health and Wellness Center which opened August, 2015 and will assist with ongoing health insurance savings. Moving forward, the district will be exploring the option of self-funding our health insurance to further reduce costs. Facility Improvements The Onsite Clinic, 4k Center and High School Tech Ed Renovations were completed this summer. The air handling unit project at Westside continues with the replacement of the air handling unit in Pod 4. The restrooms are to be upgraded at Janssen. In addition, a variety of paving, electrical and flooring improvements have been made throughout the District. Many school districts have to go to referendum to ask the taxpayer for additional funding for major facility improvements. Due to careful planning through the comprehensive long range Capital Improvement Plan, Kimberly s projects are all being funded within our regular operating budgets. Technology Improvements The District Technology Budget continues to provide the hardware, infrastructure and software needed to support the instructional goals of the District. Included in the budget are various wireless and networking upgrades. Funding continues to be side aside for mobile student computing devices. Outdated computers are to be replaced at KHS. This is one of our largest refreshes of computers. Similar to facilities, having a comprehensive long range plan for technology helps in making sure all of the projects that need to be funded are funded in the year that they need to be. 9

13 Enrollment Projected to Increase - The addition of all day 5k increases our FTE for those students from.5 to 1.0 and the increase in FTE for our 4k students from.5 to.6 causes us to project an increase in enrollment for The budget is based on an increase of 80 students. The Budget will be revised in October when we know actual numbers from our September Membership Count. THE FUTURE State Funding The Biannual budget for shows no new money in the first year and an increase of $100 per student categorical aid the second year. There is no new money in the revenue limit formula for the next two years. We have made considerable changes over the past few years to help manage the ongoing cuts to our budgets, however with fewer options to reduce spending, the District will need to remain diligent to provide a quality education while protecting our strong financial position. Enrollment - The District receives significantly less revenue per student than the State average. This had been offset by the District s rapid enrollment growth. Projections show that enrollment will not be increasing as fast as it has in the past if at all. The offering of all day 5k will help offset the slowing growth trend, however this will only impact us in the short term. Projections show the enrollment is expected to decline going forward with much smaller classes coming in than going out. We have been able to offset some of this through students from other District s attending Kimberly under the Open Enrollment Program. If these trends continue and our revenue continues to decline, we will need to adjust our spending so we can maintain our strong financial position. Health Insurance Under revenue controls, if health insurance costs continue to increase, it will become exceedingly difficult to provide our employees with pay increases while providing the same level of benefits. It is anticipated that new National Health Care legislation will further increase costs, at least in the near future. The District, our employees, health care providers, insurance carriers, state and federal governments must continue to work together if we are to solve this crisis. We will be exploring the options of Self-Funding our health insurance in the future to further help with these increasing costs. District Financial Position As a result of past practices, the District is in good financial condition for this fiscal year. With continued revenue limitations and increasing costs, the District will have to make difficult choices in the future. 10

14 BUDGET ASSUMPTIONS This budget is our best estimate of the resource distribution required to achieve the goals and objectives of the school district. There are variables that may impact the budget, which will not be finalized until the October 26, 2015 Board Meeting. These include: Revenue Limit Enrollment Adjustment - Under the current Revenue Limit Formula, the District receives additional funding for enrollment increases and less for enrollment declines. This Budget assumes 80 additional students due to the addition of all day 5k for the 2015/16 school year. If actual enrollment is greater than anticipated, the Revenue Limit (formula based on student enrollment that determines how much State Aid and Tax Revenue the District can receive) may increase, leading to an increase in the Tax Levy. If actual enrollment is less than anticipated, the Revenue Limit and Tax Levy will decrease. Actual enrollment figures were not available at the time of this printing. Equalization Aid - The State of Wisconsin provides a significant amount of aid to school districts. Aid was significantly reduced over the past several years. The District is anticipating an increase in aid. If Equalization Aid is less than projected, the Tax Levy will go up by that difference. Information needed to determine the exact amount of this aid is not available until October. Property Valuation - The estimated tax rate assumes that the value of all property in the District will remain flat. If property values increase, the tax rate (taxes paid per $1000 of property value) will decrease. Actual property valuation will not be available until October. Computer Valuation - Business computers are exempt from property tax. The District now receives aid to make up for this lost Tax Revenue. Actual computer valuation will not be available until October. If the actual value is more or less than anticipated, the Tax Levy will decrease or increase accordingly. Educational Advancement and Insurance Benefits Teaching staff receive additional compensation for additional educational attainment. The actual number of teachers who will be receiving this compensation is not known at the time of this printing. In addition, not all new employees have selected between single or family health and dental insurance plans. The current budget is based on past history. Tuition Revenue and Expenses - Budgeted tuition revenues and expenses are based on students who applied to attend other school districts under the Open Enrollment process. However, many students who apply do not actually attend. Actual enrollment figures for tuition students are not available at the time of this printing. 11

15 KIMBERLY AREA SCHOOL DISTRICT BUDGET HIGHLIGHTS Actual Budget DOLLAR PERCENT TAX LEVY * CHANGE CHANGE GENERAL FUND $12,031,532 $12,370,827 $339, % DEBT SERVICE $4,042,718 $4,041,044 -$1, % CAPITAL IMPROVEMENTS $500,000 $0 -$500, % COMMUNITY SERVICE $46,823 $46,823 $0 0.00% TOTAL $16,621,073 $16,458,694 -$162, % TAX LEVY $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ * COMMUNITY SERVICE CAPITAL IMPROVEMENTS DEBT SERVICE GENERAL FUND TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION Actual Budget DOLLAR PERCENT CHANGE CHANGE GENERAL FUND $7.34 $7.54 $ % DEBT SERVICE $2.46 $2.46 $ % CAPITAL IMPROVEMENTS $0.30 $0.00 -$ % COMMUNITY SERVICE $0.03 $0.03 $ % TOTAL $10.13 $ $ % TAX RATE PER $1,000 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 COMMUNITY SERVICE CAPITAL IMPROVEMENTS DEBT SERVICE GENERAL FUND * Estimated - Property valuation and corresponding tax rate are estimated. Actuals can not be determined until property valuation is certified by the Department of Revenue in October of

16 Rate KIMBERLY AREA SCHOOL DISTRICT MULTI-YEAR TAX COMPARISON Property Tax Rate Equalized % Tax Rate % School Year Property Value Increase Tax Levy Per $1,000 Increase $583,950, % $8,480,260 $ % $629,721, % $7,061,137 $ % $693,339, % $7,198,942 $ % $731,842, % $7,400,815 $ % $773,841, % $9,072,870 $ % $876,977, % $9,566,529 $ % $1,009,046, % $10,348,004 $ % $1,113,380, % $11,256,389 $ % $1,226,125, % $11,843,312 $ % $1,333,695, % $12,750,221 $ % $1,430,424, % $12,991,404 $ % $1,521,372, % $14,593,571 $ % $1,560,717, % $14,438,250 $ % $1,619,178, % $14,467,972 $ % $1,669,751, % $15,680,894 $ % $1,669,505, % $16,672,024 $ % $1,680,933, % $17,210,067 $ % $1,590,922, % $16,736,406 $ % $1,625,404, % $16,801,978 $ % $1,641,460, % $16,621,073 $ % * $1,641,460, % $16,458,694 $ % TAX RATE PER $1,000 OF EQUALIZED PROPERTY VALUE $ $14 $12 $ $8 $6 $4 $2 $ * School Year * Estimated - Property valuation and the corresponding tax rate are estimated. Actuals can not be determined until property valuation is certified by the Department of Revenue in October of

17 BUDGET ADOPTION, The following pages present data on Expenditures, Revenues and Fund Balances for , and the budget for in a format recommended by the Department of Public Instruction for the adoption of school district budgets. Definitions and Graphics have been added to facilitate understanding. DEFINITION OF FUND: A fund is an independent accounting entity consisting of a self-balancing set of accounts established for the purpose of carrying on specific activities or attaining certain objectives in accordance with laws, regulations, restrictions or limitations. On the following pages you will find a description of every fund used by the District along with financial data on that fund. The General Fund is the largest fund in the District and is used to account for the day-to-day financial operations of the District. All monies are accounted for here except those which are required to be accounted for in a separate fund (i.e. Federal Projects, Long-term Debt). Audited Unaudited Budget Dollar Percent REVENUES Change Change Beginning Fund Balance 9,343,426 9,416,762 9,439,805 23, % Ending Fund Balance - Designated % Ending Fund Balance - Nonspendable % Ending Fund Balance - Restricted % Ending Fund Balance - Committed % Ending Fund Balance - Assigned 761,967 1,199,931 1,199, % Ending Fund Balance-Unassigned 1 8,654,795 8,239,874 8,239, % Working Capital Needs TOTAL ENDING FUND BALANCE 9,416,762 9,439,805 9,439, % TOTAL REVENUES & OTHER FINANCING 100 Operating Transfers-In % Local Sources 210 Taxes 12,218,366 12,031,532 12,370, , % 230 Interfund Payments % 240 Payment for Services % 260 Non-Capital Sales , % 270 School Activities Income 3 44,974 41,367 35,000-6, % 280 Interest on Investments 14,295 12,526 12, % 290 Other Local Revenue 4 265, , ,480-18, % Other School Districts within Wisconsin 310 Interdistrict Transit of State Aid % 340 Payment for Services 5 2,798,361 3,137,424 3,135,550-1, % 380 Medical Service Reimbursements 390 Other Interdistrict within Wisconsin % Other School Districts Outside of Wisconsin 440 Payment for Services % 490 Other Interdistrict Outside Wisconsin % Intermediate Sources 510 Intermediate Transit of State Aid 6 0 1, , % 520 Payment in Lieu of Taxes % 540 Payment for Services % 580 Medical Services Reimbursement % 590 Other Intermediate Sources % *See next page for Revenue Definitions GENERAL FUND 14

18 BUDGET ADOPTION, (Continued) Audited Unaudited Budget Dollar Percent REVENUES (Continued) Change Change State Sources 610 State Aid - Categorical 7 545, , ,000-7, % 620 State Aid - General 8 27,878,226 28,775,017 29,525, , % 630 Special State Project Grants 9 29,200 52, , % 640 Payments for Services % 650 State Youth Initiative Program % 660 State Revenue thru Local Sources 10 3,371 3, , % 690 Other Revenue, State , , ,663-1, % Federal Sources 710 Transit of Aids % 720 Impact Aid % 730 Special Project Grants 12 65,903 68,558 61,448-7, % 740 Payments for Services % 750 Title 1 & , , ,090-10, % 760 Job Training Partnership Act Grant % 770 Federal Revenue Thru Local Gov % 780 Federal Revenue Thru State 14 93, % 790 Other Revenue, Federal % Other Financing Sources 850 Reorganization Settlement % 860 Compensation, Fixed Assets , % 870 Long-Term Obligations % 890 Miscellaneous % Other Financing Revenues 960 Adjustments 1, % 970 Refund of Disbursement ,210 89,918 55,000-34, % 980 Medical Service Reimbursement % 990 Miscellaneous 56,882 48,208 45,000-3, % TOTAL REVENUES & OTHER FINANCING 44,736,910 45,858,745 46,798, , % *Selected Fund Balance & Revenue Definitions 1 Portion of fund balance to be used for cash flow needs and emergencies. 2 Revenue from the sale of items not considered to be capital equipment. 3 Revenue received from school sponsored activities such as admission to athletic events. 4 Revenue from miscellaneous resources such as student fees & fines. 5 Tuition received from other Wisconsin School Districts for their students attending our schools under "Open Enrollment" Law. 6 State Aid received via an Intermediate Education Agency (CESA). 7 State Transportation, Library Aid & Per Pupil Categorical Aid($150/pupil). 8 State Equalization Aid (based on property tax wealth within the district). 9 Money received from State to support specialized education programs. 10 Money received from State for DNR property in District. 11 Business computers became exempt from property tax in The District now receives aid to make up for lost tax revenue. 12 Federal grants received thru the Dept. of Public Instruction for improvement of instruction. 13 Federal Aid received thru the Dept. of Public Instruction for specific programs. 14 Federal Aid received thru the State other than DPI including Medicaid/School Based Services. 15 Compensation for the sales of assets. 17 Refund of prior year expenditure including E-Rate Refund and Workers Compensation Dividend. 15

19 BUDGET ADOPTION, (Continued) GENERAL FUND REVENUES BY PERCENTAGE Federal 0.47% Local & Other 34.24% State 65.29% BUDGETED GENERAL FUND REVENUES BY PERCENTAGE Federal 0.42% Local & Other 34.14% State 65.44% 16

20 BUDGET ADOPTION, GENERAL FUND EXPENDITURES BY FUNCTION DEFINITION OF FUNCTION: Grouping of expenditures by department or purpose. Audited Unaudited Budget Dollar Percent Expenditures by Function Change Change Undifferentiated Curriculum 1 9,807,135 9,980,959 10,864, , % Regular Curriculum 2 9,889,257 9,792,108 9,725,041-67, % Vocational Curriculum 1,673,449 1,721,638 1,868, , % Physical Curriculum 1,261,773 1,258,182 1,299,911 41, % Special Curriculum % Co-Curricular Activities 758, , ,408 78, % Special Needs 4 597, , ,569 24, % Pupil Services 5 1,286,203 1,247,470 1,292,330 44, % Instructional Staff Services 6 1,796,632 1,961,589 1,988,584 26, % General Administration 7 491, , ,075 96, % School Building Administration 8 2,529,417 2,648,975 2,705,468 56, % Business Administration 9 7,081,201 7,798,983 6,915, , % Central Services 10 1,680,253 1,685,754 1,862, , % Insurance & Judgments , , ,563 36, % Debt Services , % Other Support Services , ,790 19, , % Interfund Operating Transfers 14 3,958,987 4,049,558 4,346, , % Tuition Payments 15 1,223,812 1,351,169 1,555, , % Other Non-Program 16 2,549 67,142 5,000-62, % TOTAL EXPENDITURES 44,663,576 45,835,707 46,798, , % 1 Teacher instructs over several subject areas (i.e., 1st Grade). 2 Teacher instructs in one area (i.e., math or science). 3 Activities of special needs students now accounted for in a separate Fund (27) - see Activities of special needs students not categorized under Special Curriculum. 5 Activities such as Guidance and Nursing. 6 Activities such as Curriculum Development and Library Services. 7 Activities related to the Board & Superintendent. 8 Activities of School Principal Offices. 9 Activities associated with Accounting, Custodial Services, Utilities, Maintenance & Transportation. 10 Activities such as phones, postage and printing. 11 Property and Casualty Insurance. 12 Installment Purchase (Capital Lease) & Cash Flow Borrowing interest expenses. 13 Retirement benefits transferred to the Post Retirement Benefit Trust. 14 Transfer of funds from General Fund to the Special Education Fund (27). 15 Tuition Payments including those for Open Enrollment. 16 Miscellaneous adjustments including payment back to Municipalities for uncollected taxes from previous year. 17

21 BUDGET ADOPTION, GENERAL FUND EXPENDITURES BY OBJECT DEFINITION OF OBJECT: Grouping of expenditures by expense category. Audited Unaudited Budget Dollar Percent Expenditures by Object Change Change 100 Salaries 21,284,923 21,644,727 22,570, , % 200 Benefits 8,240,590 8,339,879 8,748, , % 300 Purchased Services 1 7,533,370 7,993,789 7,733, , % 400 Non-Capital Objects 2 1,725,111 1,843,645 1,929,301 85, % 500 Capital Objects 3 1,228,456 1,269, , , % 600 Debt Retirement 4 138, #DIV/0! 700 Insurance & Judgments 275, , ,563 3, % 800 Interfund Transfers 5 3,958,987 4,049,558 4,346, , % 900 Miscellaneous 277, , , , % TOTAL EXPENDITURES 44,663,576 45,835,704 46,798, , % Selected Object Definitions 1 Purchased Services Payments for services rendered by personnel who are not on the district payroll. 2 Non-Capital Objects Supplies, materials and equipment with a value of less than $1,000 per unit. 3 Capital Objects Computers with a value over $500 per unit plus all other equipment, buildings and sites with a value over $1,000 per unit. 4 Debt Retirement Principal and interest payments for our cash flow borrowing (not long-term debt). 5 Interfund Transfers Transfer of Funds from General Fund to the Special Education Fund (27) PERCENTAGE OF EXPENDITURES BY OBJECT Purchased Services 14.72% Capital Objects 1.20% Benefits 18.69% Non-Capital Objects 4.45% Debt Retirement 0.02% Insurance & Judgments 0.67% Other 10.45% Interfund Transfers 9.25% b Miscellaneous 0.50% Salaries 48.23% 18

22 FUNCTION KIMBERLY AREA SCHOOL DISTRICT BUDGET ADOPTION, GENERAL FUND EXPENDITURES BY FUNCTION (Continued) BUDGET COMPARISON BY FUNCTION Tuition Payments 15 Interfund Operating Transfers 14 Other Support Services 13 Debt Services 12 Insurance & Judgments 11 Central Services 10 Business Administration 9 School Building Administration 8 General Administration 7 Instructional Staff Services 6 Pupil Services 5 Special Needs 4 Co-Curricular Activities Special Curriculum 3 Physical Curriculum Vocational Curriculum Regular Curriculum 2 Undifferentiated Curriculum $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 19

23 EXAMPLES OF MAJOR GENERAL FUND EXPENDITURE INCREASES/DECREASES BY OBJECT SALARIES 2015/16 $22,570, /15 21,644,727 Increase $ 925,935 Salaries are anticipated to increase by approximately 4.3%. This includes salaries for new staff including additional staff due to all day kindergarten and the higher than anticipated number of 4k students, a cost-ofliving increase for current employees and additional teacher compensation for experience and educational attainment. Salary and benefits for Special Education staff are accounted for in the Special Education Fund. BENEFITS 2015/16 $ 8,748, /15 8,339,879 Increase $ 408,723 Benefits are anticipated to increase by approximately 5%. The increase in benefits is primarily related to slight insurance increases and additional staff benefits. PURCHASED SERVICES 2015/16 $ 7,733, /15 7,993,789 Decrease (- $260,600) Purchased Services include payments to third parties for services they provide. Significant Purchased Services include Open Enrollment tuition costs - $1,511,741 Utilities - $1,556,000, Busing - $1,319,145 Operational Services (primarily cost of contracted Cleaning Service) - $836,750, Maintenance Services - $1,017,133 and Contracted Personal (i.e. consultants, attorneys) Services - $909,167 and a few other miscellaneous contracted service payments. Several major renovations were paid for out of the 2014/15 Budget that are not included in the 2015/16 Budget. This will result in a reduction in Purchased Services in 2015/16. The majority of the cost for the 4k Literacy Center and Kimberly Area School District Health & Wellness Center were paid for in 2014/15. We will see increases in bussing, utilities, and operational services due to the additional 4k Literacy Center building. Also included here are expenses that have been moved from Fund 41 Capital Improvement Fund not levied into Fund

24 EXAMPLES OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED NON-CAPITAL OBJECTS 2015/16 $ 1,929, /15 1,843,645 Increase $ 85,656 Non-Capital Object expenses include supplies, non-capital equipment (not considered a fixed asset) books, materials and computer software. To encourage better spending, unused supply budgets are allowed to be carried over into the next year. Included in the 2015/16 Budget are approximately $943,598 for general supplies, $317,542 for computer software & components, $188,654 for media, $284,300 for textbooks, $78,502 for non-capital equipment and $75,000 for paper. The increase in the Budget is related to the move of Fund 41 Capital Improvement Expenses to Fund 10 and the 2 nd phase of the JRG LMC. CAPITAL OBJECTS 2015/16 $ 924, /15 $1,269,119 Decrease (- $344,698) Capital Objects include buildings, sites and equipment with a value over $1,000 per unit and computers with a value over $500 per unit. The district purchased a home at 416 Park Street in In addition, rental is included here and we paid the rental of Christ the King Parking Lot for an extended lease, which will not need to be paid this year. The district made various purchases in that will not be made in All of the furniture for the 4k Center was purchased which was an expense of $63,789. Other purchases were equipment for the Robotics class, an athletic field painter, and maintenance tractor and a new maintenance truck. Significant 2015/16 purchases include $100,000 for chromebooks as part of our mobile student computing initiative, 275,000 for computer replacements as part of our 5-year rotation program, $125,550 for computer network and back-up system replacements, $76,500 for copier/printer replacements, $15,000 for security equipment and $15,000 for projector replacement. 21

25 EXAMPLES OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED OPERATIONAL DEBT 2015/16 $ /15 0 Included in Operational Debt are installment purchase (Capital Lease) payments and short-term borrowing costs to meet cash flow needs. We do not anticipate and Operational Debt payments in 2015/16. The District has not had to short-term borrow the past few years. INSURANCES 2015/16 $313, /15 $310,002 Increase $ 3,561 Included in insurances are costs associated with Liability, Property, Workers Compensation and Unemployment Insurance. The 15/16 Budget reflects premium increases. INTERFUND TRANSFERS 2015/16 $4,346, /15 4,049,558 Increase $ 310,002 All Special Education costs are accounted for in a separate Fund Special Education costs not covered by state aid or federal grants must be transferred from the General Fund to Fund 27. This transfer is accounted for here. The increase in the amount of money that has to be transferred to the Special Education Fund in 2015/16 is related to an increase in expenses mostly in salary and benefits. There were 2 full-time Psychiatrist positions that we didn t fully fill last year and this contributes to the increase for 2015/16. Salary and benefit expenditures for Special Education Staff are budgeted to increase by $297,

26 EXAMPLES OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED OTHER 2015/16 $231, /15 384,985 Decrease (-$153,077) Other expenditures are generally associated with dues and fees for such things as memberships to professional organizations, registration fees, reimbursement for graduate school credits, co-curricular participation, license fees including software licenses, bank service charges, prior year Medicaid refunds and various other fees. A large portion of the decrease was for $65,000 in prior year Medicaid revenue that we had to pay back in for overpayment that was calculated from back to claims. The 2015/16 decrease also relates to Curriculum and Instruction related dues and fees. 23

27 BUDGET ADOPTION, SPECIAL PROJECTS FUNDS (FUND 21, 23 & 27) Special Project Funds are used to account for activities funded by specific sources for specific purposes. These include Fund 21 (gifts and donations for specific purposes such as playground equipment), Fund 23 (State Technology Grant that has been suspended) and Fund 27 (activities related to Special Education). Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 405, , , , % Ending Fund Balance 387, , ,565-87, % TOTAL REVENUES & OTHER FINANCING 7,657,372 7,532,407 7,871, , % Instruction 6,066,983 5,864,555 6,263, , % Support Services 1,412,286 1,337,902 1,508, , % Non-Program Transactions 195, , ,500-20, % TOTAL EXPENDITURES & OTHER FINANCING 7,675,204 7,409,682 7,958, , % DEBT SERVICE FUNDS (FUND 38 & 39) The Debt Service Fund is used to track revenues (primarily tax levy) and expenditures (principal & interest payments) associated with the retirement of long-term debt. "Long-term Capital Debt" (281000) is related to Sunrise, the High School, Mapleview and Woodland Building Referendum projects. We refinanced our debt in As a result of this refinancing and other refinancing in , future tax levies will be reduced by approximately $3,451,118. We will have one more opportunity to refinance in Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 525, , ,916-60, % Residual Equity Transfers In (Out) % Ending Fund Balance 485, , ,460-43, % TOTAL REVENUES & OTHER FINANCING 4,038,629 4,044,064 4,042,044-2, % Long-Term Capital Debt 4,078,643 4,104,935 4,085,500-19, % Refinancing % Long-Term Operational Debt % Other Long-Term Debt % Interfund Transfer % TOTAL EXPENDITURES & OTHER FINANCING 4,078,643 4,104,935 4,085,500-19, % INDEBTEDNESS, END OF YEAR 32,780,000 29,525,000 26,165,000-3,360, % CAPITAL PROJECT FUNDS (FUND 41, 45,46 & 49) The Capital Project Fund is used to account for financial resources involved in the acquisition of land and capital objects (i.e., classroom computers), construction of capital facilities (i.e., new building or major remodeling projects) or maintenance projects (i.e., new roof). The Revenue in this Fund primarily comes from the proceeds of Debt (Fund 38 & 39). The 2013/14 Budget included the annual lease payment for our Field Turf Project. This lease was paid off in 2013/14. The majority of funds used to pay the lease were from community donations. In addition, Fund 46 was added to this category this year. Fund 46 was created to over time replace some of the expenditures that previously came out of Fund 41. The money deposited into Fund 46 can not be used for 5 years from when it was started in 2015, but the aid from the transfer from Fund 10 is realized immediately. 23

28 BUDGET ADOPTION, CAPITAL PROJECT FUNDS (FUND 41, 45, 46 & 49) Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 1,415,545 1,840,018 2,180, , % Residual Equity Transfers In (Out) % Ending Fund Balance 1,840,018 2,180,184 2,205,284 25, % TOTAL REVENUES & OTHER FINANCING 531, ,697 25, , % Instruction % Support Services 107, , , % Non-Program Transactions % TOTAL EXPENDITURES & OTHER FINANCING 122, , , % FOOD SERVICE FUND (FUND 50) All receipts and expenditures for our school lunch program are recorded here. This program is contracted out to Chartwells, Inc., a Food Service Management Company. The goal of this Fund is for it to be self sustaining. We have been able to meet that goal. The past couple years student participation has decreased due to new mandates from Hungry Free Kids Act. Our new food service director has done some great things this year to make the meals more appealing to students and to draw more students towards eating on campus. We will contine to work on providing our children healthy meals and making it appealing to students and their parents to eat at school. Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 158, , ,703 42, % Residual Equity Transfers In (Out) % Ending Fund Balance 214, , ,280 94, % TOTAL REVENUES & OTHER FINANCING 1,224,730 1,310,788 1,325,391 14, % Support Services 1,168,492 1,268,338 1,230,814-37, % Non-Program Transactions % TOTAL EXPENDITURES & OTHER FINANCING 1,120,016 1,268,338 1,230,814-37, % EMPLOYEE BENEFIT TRUST (FUND 73) The District established a Trust in 2003/04 to help fund employee retirement benefits the District has been obligated to pay in the future. This Fund can only be used to pay retiree benefits. The District is not obligated to make payments to the Trust. The value of the Trust increased by $133,111 in 2014/15. $655,036 in additional contributions were made. Interest income and realized gains (investment sold) were $235,447. These increases were offset by Trust fees of $68,827 and payments to retirees of $688,545. Per our most recent Actuarial Study, the Trust is funded beyond what it needs to be at this point. Not many school districts in the State or country are able to say this. The value of the Trust as of 6/30/15 was $9,735,720. Since the District's initial contribution into Wisconsin OPEB trust in April of 2012, the investment has gained approximately $1.41 Million in value. Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 8,050,006 9,602,609 9,735, , % Residual Equity Transfers In (Out) % Ending Fund Balance 9,602,609 9,735,720 10,095, , % TOTAL REVENUES & OTHER FINANCING 2,200, ,483 1,020, , % Support Services 69,449 68,827 68, % Non-Program Transactions 577, , ,407-96, % TOTAL EXPENDITURES & OTHER FINANCING 647, , ,907-96, % 24

29 BUDGET ADOPTION, COMMUNITY SERVICE FUND (FUND 80) Fund 80 is used to account for community activities that are not directly related to school educational programs. The District's Community Fitness Center is accounted for in this Fund. The amount set aside to pay workers is $15,100, $5,135 for supplies and $6,000 for equipment maintenance and replacement. All District facilities are open to the public. Over 10,000 events were scheduled and coordinated by a District secretary this past year. A portion of that individuals salary and benefits ($13079) are paid in Fund 80. A portion of salary and benefits ($5,550) for the employee that is responsible for Community Outreach Programs such as Senior Quest, Little Free Libraries and Mini-Makers is also paid for out of Fund 80. In addition, $3,000 has been set aside for supplies for these outreach programs. Lastly, a portion of an employees salary and benefits ($7,294 is paid out of Fund 80 to coordinate a County funded intervention program for youth in the community. The Community Service Tax Levy will support $46,823 out of $56,117 in budgeted expenditures. Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 54,085 75,293 11,891-63, % Residual Equity Transfers In (Out) % Ending Fund Balance 75,293 11,891 11, % TOTAL REVENUES & OTHER FINANCING 65,442 58,159 56,117-2, % Instruction % Support Services % Community Services 44,668 46,268 56,117 9, % Non-Program Transactions 0 75, , % TOTAL EXPENDITURES & OTHER FINANCING 44, ,561 56,117-65, % ALL FUNDS COMBINED Audited Unaudited Budget Dollar Percent Change Change TOTAL REVENUES & OTHER FINANCING 61,454,646 60,255,343 61,139, , % TOTAL EXPENDITURES & OTHER FINANCING 58,351,672 59,718,126 60,790,384 1,072, % 25