KIMBERLY AREA SCHOOL DISTRICT 2017 ANNUAL MEETING

Transcription

1 2017 ANNUAL MEETING Monday September 25, :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, 2017 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, COOERATIVE AND ALL FUNDS COMBINED TAX LEVY, PROJECTED EQUALIZED VALUATIONS & TAX RATE STAFFING MINUTES OF THE SEPTEMBER 26, 2016 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, 2020 Brad Siebers, Vice President April, 2018 Deb Roberts, Clerk April, 2019 Penny Hoh, Treasurer April, 2019 Ammie Ebben, Member April, 2020 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 Colin Pomeroy 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 25, 2017 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 26, 2016 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 25, 2017 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 26, 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 24, 2018) 11. Old Business 12. New Business 13. Adjournment Debbie Roberts KASD Board Clerk Publish: September 13, 2017 September 20,

7 AGENDA: Kimberly Area School District ANNUAL SCHOOL DISTRICT MEETING Monday, September 25, 2017 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). Motion: To accept the recommended guidelines for the Annual Meeting. By: : seconded by: Vote:. 4

8 4. Dispense with reading the minutes of the Annual Meeting, Monday, September 26, 2016 (Attached to the back of this booklet). Motion: To dispense with the reading of the last annual meeting minutes of Monday, September 26, 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 24, 2018). Motion: To authorize the School Board to set the date and time of the 2018 Annual Meeting of September 24, 2018 at 7:15 p.m.. By: : seconded by: Vote:. 11. Old Business 12. New Business 13. Adjournment (2). Motion: Resolved that this meeting adjourn as of PM, September 25, By: : seconded by: Vote:. 6

10 TREASURER'S REPORT FOR THE YEAR ENDED JUNE 30, 2017 Fund Balance - All Funds July 1, 2016 $24,720,855 Add: Revenues $70,145,643 Less: Expenditures $67,116,213 Fund Balance - All Funds June 30, 2017 $27,750,287 Fund Balances consist of: Increase June June (Decrease) Cash 1 General Fund (Fund 10) $10,831,968 $9,533,112 -$1,298,856 Special Revenue Trust Fund (Fund 21) $447,467 $472,863 $25,396 Technology Grant & Special Ed (Fund 23/27) $37,885 ($94,700) -$132,585 Debt Service Funds (Fund 38/39) $0 $0 $0 Capital Projects (Fund 41/45/46/49) $30,043 $140,231 $110,188 Food Service (Fund 50) $860 $87,985 $87,125 Student Activities (Fund 60) $186,837 $199,519 $12,682 Private Benefit Trust (Fund 71, 72) $31,139 $30,836 -$303 Community Service (Fund 80) $26,301 $41,087 $14,786 66:03 Cooperative Agreement (Fund 99) $2,559 $2,559 Total Cash $11,592,499 $10,413,491 -$1,181,566 Investments 2 General Fund (Fund 10) $0 $0 $0 Special Revenue Trust Fund (Fund 21) $0 $0 $0 Debt Service Funds (Fund 38/39) $333,157 $308,394 -$24,763 Capital Projects (Fund 41/45/46/49) $2,101,377 $6,513,322 $4,411,945 Food Service (Fund 50) $193,406 $193,406 $0 Employee Benefit Trust (Fund 73) $9,512,379 $10,333,361 $820,982 Community Service (Fund 80) $0 $0 $0 Total Investments $12,140,319 $17,348,483 $5,208,164 Taxes/Other Receivables/Prepaid Expenses General Fund (Fund 10) $4,189,973 $4,160,868 -$29,104 Special Revenue Trust Fund (Fund 21) $0 $0 $0 Technology Grant & Special Ed (Fund 23/27) $0 $0 $0 Capital Projects (Fund 41/45/46/49) $60,473 $747,781 $687,308 Food Service (Fund 50) $78,114 $78,238 $124 Community Service (Fund 80) $0 $0 $0 Total Receivables $4,328,560 $4,986,888 $658,328 Due From Other Funds/Districts/State/Fed Govt. General Fund (Fund 10) $1,719,432 $841,316 -$878,116 Technology Grant & Special Ed (Fund 23/27) $307,670 $452,093 $144,424 Capital Projects (Fund 41/45/46/49) $660,000 $0 -$660,000 Food Service (Fund 50) $3,202 $11,782 $8,580 Total Due $2,690,303 $1,305,191 -$1,385,112 Other Current Assets Food Service (Fund 50) $49,744 $62,516 $12,772 Liabilities (Money Owed) General Fund (Fund 10) $5,329,713 $4,909,091 -$420,621 Special Revenue Trust Fund (Fund 21) $779 $19 -$760 Technology Grant & Special Ed (Fund 23/27) $244,374 $279,339 $34,965 Capital Projects (Fund 41/45/46/49) $60,473 $866,841 $806,368 Food Service (Fund 50) $75,069 $108,504 $33,435 Student Activities (Fund 60) $186,837 $199,519 $12,682 Employee Benefit Trust (Fund 73) $182,571 $0 -$182,571 Community Service (Fund 80) $754 $412 -$342 66:03 Agreement(Fund 99) $2,559 Total Liabilities $6,080,570 $6,366,285 $283,156 Fund Balances General Fund (Fund 10) $11,411,659 $9,626,207 -$1,785,452 Special Revenue Trust Fund (Fund 21) $446,688 $472,844 $25,396 Technology Grant & Special Ed (Fund 23/27) $101,180 $78,054 -$23,126 Debt Service Fund (Fund 38/39) $333,157 $308,394 -$24,763 Capital Projects (Fund 41/45/49) $2,791,420 $6,534,493 $3,743,073 Food Service (Fund 50) $250, $325, $62,395 Student Activities (Fund 60) $0 $0 $0 Private Benefit Trust (Fund 71,72) $31,139 $30,836 -$303 Employee Benefit Trust (Fund 73) $9,329,808 $10,333,361 3 $1,003,553 Community Service (Fund 80) $25,547 $40,675 $15,128 66:03 Cooperative Agreement(Fund 99) $0 Total of All Fund Balances $24,720,855 $27,750,287 $3,015,901 1 Includes checking accounts, money on hand and deposits with fiscal agents. 2 Money invested to earn income. 7

11 BUDGET MESSAGE THE YEAR IN REVIEW 2016/17 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 7 th consecutive year. We were ranked as 22 nd 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 Recognitions with 177 KHS students being recognized. Revenue from the State- The district received no new money under the revenue limit from the state in However, the per pupil categorical aid amount increased by $100/student. Lower Taxes and Lower Tax Rate - The Tax Levy decreased by $33,402 or -0.20%. In addition, property values increased by 2.17% 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 -$0.23 or -2.37%. Health Insurance Updates The district changed Health Insurance Carriers to Anthem and changed to a narrow network to reduce our costs and put more money into salaries. The Kimberly Area School District Health and Wellness Center was once again successful at saving the district and employees money. Facility Improvements The major project for which carried over to was the Indoor Athletic Facility. In addition, the HS Tennis Courts were redone and reconfigured, Westside HVAC was replaced in Pod 4 and there were other various lighting, flooring, and other upgrades done throughout the district. Technology Improvements The District is continuing to improve its infrastructure to provide mobility and access to information for students anywhere within the District. The largest projects this year were a new firewall and internet filter, replacement of computers in the KHS Tech Ed department, laptops for JRG Staff, new classroom projectors for KHS and network replacement at KHS. Enrollment higher causing an increase in Aid and Levy Limit Authority - The total student count for students used for aid and levy calculations increased by 136 students. This allowed us to increase our revenue by $988,138 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. The increase in aid also helps our levy for the following year go down. 8

12 WHAT S NEW IN 2017/18 $200/Student Proposed Increase in Revenue from the State As of writing this, the state budget has not been approved. However, the current proposal is that the District will not receive any new money under the revenue limit from the state in However, it has been proposed that there will be a $200/pupil increase in state categorical aid for The budget is based in the $200/pupil. If anything changes, the current Kimberly Area School District Budget will be revised to reflect additional or less revenue. Lower Taxes - The Tax Levy is estimated to decrease by approximately -$1,056,431 or %. The large decrease this year is due to the increase in students in leading to more aid in and the additional expenses for the indoor facility as part of the aid calculation is based on how much we spend. Health Insurance Faced with a 34% increase in health insurance premiums, the district needed to change health insurance carriers to reduce our health insurance costs. The move gave us a guarantee that our rates will not go up more than 15% in and moving forward, the district will continue exploring the option of self-funding our health insurance as well as other cost saving measures to further reduce costs. Facility Improvements The Indoor Athletic Facility will be complete. The JRG commons and cafeteria will be renovated to provide a more appropriate and feasible place to serve the increased number of students over the years. The Westside project of replacing the HVAC units over the past several years will be completed with the final unit being replaced this summer. The Janssen Parking lot was redone to accommodate the high traffic flow at pickup and drop off times. 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 upgrades to the districts server and storage systems. Funding continues to be set side aside for mobile student computing devices. Outdated computers are to be replaced in many areas throughout the district. 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. Enrollment Projected to Increase Slightly In June, I presented a decrease of 20 students. Due to the increased registrations we have seen throughout the district over the summer, the Cohort model that is used for budget forecasting shows an increase of 13 students. The Budget will be revised in October when we know actual numbers from our September Membership Count. 9

13 THE FUTURE State Funding The proposed state budget includes a $200 increase per student in categorical aid in each of the next 2 budget years. There are also proposals to increase the amount that we are allowed to receive under the revenue limit incrementally over the next several years. We will continue to monitor and wait for the budget to be passed to continue long term planning and iniatives. Enrollment - The District receives significantly less revenue per student than the State average. This has 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. We have been able to offset some of this through students from other Districts attending Kimberly under the Open Enrollment Program. If these trends continue and our revenue starts 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. We will continue to explore insurance options to reduce our costs, but have the lowest impact on our employees and will continue exploring the option 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. The proposed budget education plan from the state will help in reducing our long term structural deficit. We need to continue to monitor our enrollment and adjust our budget accordingly to account for less revenue if there is declining enrollment. 10

14 BUDGET ASSUMPTIONS This budget is our best estimate of the revenue 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 23, 2017 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 the student enrollment will increase by 13 students for the 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 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. Open Enrollment 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 open enrollment 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 $12,853,870 $11,201,864 -$1,652, % DEBT SERVICE $3,664,200 $4,259,775 $595, % COMMUNITY SERVICE $46,823 $46,823 $0 0.00% TOTAL $16,564,893 $15,508,462 -$1,056, % 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 DEBT SERVICE GENERAL FUND TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION Actual Budget DOLLAR PERCENT CHANGE CHANGE GENERAL FUND $7.36 $6.42 -$ % DEBT SERVICE $2.10 $2.44 $ % COMMUNITY SERVICE $0.03 $0.03 $ % TOTAL $9.49 $8.89 -$ % TAX RATE PER $1,000 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 COMMUNITY SERVICE 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 $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 $ % $1,708,096, % $16,598,295 $ % $1,745,212, % $16,564,893 $ % * $1,745,212, % $15,508,462 $ % TAX RATE PER $1,000 OF EQUALIZED PROPERTY VALUE $12 $10 $ $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 accounting entity consisting of a self-balancing set of assets, liability and equity accounts used to account for the district's financial transactions in accordance with laws, regulations, or restrictions. The Department of Public Instruction requires reporting of various revenues and expenditures within specified funds. GENERAL 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). BUDGET ADOPTION GENERAL FUND (FUND 10) Dollar Change Percent Change Beginning Fund Balance (Account ) 9,439, ,411, ,626, (1,785,454.97) -16% Ending Fund Balance, Nonspendable (Acct ) % Ending Fund Balance, Restricted (Acct ) % Ending Fund Balance, Committed (Acct ) % Ending Fund Balance, Assigned (Acct ) 3,187, ,687, ,687, % Ending Fund Balance, Unassigned (Acct ) 1 8,223, ,938, ,938, % TOTAL ENDING FUND BALANCE (ACCT ) 11,411, ,626, ,626, % REVENUES & OTHER FINANCING SOURCES 100 Transfers-in , , % Local Sources 210 Taxes 12,676, ,853, ,201, (1,652,006.00) -13% 240 Payments for Services % 260 Non-Capital Sales , % 270 School Activity Income 3 44, , , (8,276.55) -18% 280 Interest on Investments 11, , , (2,915.29) -20% 290 Other Revenue, Local Sources 4 342, , , (7,444.16) -2% Subtotal Local Sources 13,075, ,238, ,567, (1,670,515.47) -13% Other School Districts Within Wisconsin 310 Transit of Aids % 340 Payments for Services 5 3,564, ,889, ,924, , % 380 Medical Service Reimbursements % 390 Other Inter-district, Within Wisconsin % Subtotal Other School Districts within Wisconsin 3,564, ,889, ,924, , % Other School Districts Outside Wisconsin 440 Payments for Services % 490 Other Inter-district, Outside Wisconsin % Subtotal Other School Districts Outside Wisconsin % Intermediate Sources 510 Transit of Aids 6 9, , (28,771.00) -100% 530 Payments for Services from CCDEB % 540 Payments for Services from CESA % 580 Medical Services Reimbursement % 590 Other Intermediate Sources % Subtotal Intermediate Sources 9, , (28,771.00) -100% State Sources 610 State Aid -- Categorical 7 932, ,393, ,367, , % 620 State Aid -- General 8 29,555, ,531, ,125, ,593, % 630 DPI Special Project Grants 9 62, , , (14,220.82) -22% 640 Payments for Services % 650 Student Achievement Guarantee in Education (SAGE Grant) % 660 Other State Revenue Through Local Units 10 3, , (3,354.35) -100% 690 Other Revenue , , , (9,581.00) -6% Subtotal State Sources 30,792, ,152, ,692, ,540, % Federal Sources 710 Federal Aid - Categorical % 720 Impact Aid % 730 DPI Special Project Grants 12 57, , , , % 750 IASA Grants , , , , % 760 JTPA % 780 Other Federal Revenue Through State , (19,213.38) -100% 790 Other Federal Revenue - Direct % Subtotal Federal Sources 183, , , , % 14

18 Other Financing Sources 850 Reorganization Settlement % 860 Compensation, Fixed Assets 15 2, , , (63.61) -1% 870 Long-Term Obligations , (345,251.00) -100% Subtotal Other Financing Sources 2, , , (345,314.61) -98% Other Revenues 960 Adjustments 54, , (8,259.80) -100% 970 Refund of Disbursement , , , (3,136.78) -5% 980 Medical Service Reimbursement % 990 Miscellaneous 18 87, , , (454,320.54) -91% Subtotal Other Revenues 319, , , (465,717.12) -82% TOTAL REVENUES & OTHER FINANCING SOURCES 47,946, ,405, ,550, ,144, % *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(Budgeted $450/pupil-17/18). 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 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. 16 Record Revenue from Capital Lease to pay for donated scoreboards 17 Refund of prior year expenditure including E-Rate Refund and Workers Compensation Dividend. 18 Includes OPEB Settlement in

19 Local and State Sources Federal Sources KIMBERLY AREA SCHOOL DISTRICT BUDGET ADOPTION, (Continued) Revenues by Source Kimberly Area September Budget Hearing Revenues by Source $35,692,762 $193,654 $7,500 $165,000 $11,567,985 $3,924,606 $0 $0 Local : 22.4% Interdistrict - WI : 7.6% Interdistrict - outside WI : 0.0% Intermediate : 0.0% State : 69.2% Federal : 0.4% Other Financing : 0.0% Other Revenues : 0.3% Historic and Budgeted Revenues Kimberly Area September Budget Hearing Historic and Budgeted Revenues Revenues by Source 41,000, ,000 36,000, ,000 31,000,000 26,000, , ,000 21,000,000 16,000,000 11,000, , , , ,000 6,000,000 50,000 1,000,000 FY2013 FY2014 FY2015 FY2016 FY2017 FY Local Sources State Sources Federal Sources 16

20 BUDGET ADOPTION, GENERAL FUND EXPENDITURES BY FUNCTION DEFINITION OF FUNCTION: Grouping of expenditures by department or purpose. GENERAL FUND (FUND 10) Expenditures by Function BUDGET ADOPTION Audited Unaudited Budget Dollar Change Percent Change Instruction Undifferentiated Curriculum 1 10,209, ,100, ,047, , % Regular Curriculum 2 9,327, ,794, ,329, , % Vocational Curriculum 1,752, ,894, ,117, , % Physical Curriculum 1,327, ,452, ,518, , % Co-Curricular Activities 772, , , (75,102.00) -8% Other Special Needs 3 556, , , , % Subtotal Instruction 23,945, ,753, ,607, ,854, % Support Sources Pupil Services 4 1,177, ,385, ,303, (81,097.00) -6% Instructional Staff Services 5 2,059, ,837, ,112, , % General Administration 6 637, , , , % School Building Administration 7 2,719, ,705, ,774, , % Business Administration 8 7,030, ,135, ,366, (3,768,467.00) -34% Central Services 9 2,045, ,997, ,153, , % Insurance & Judgments , , , , % Debt Services , (118,502.00) -100% Other Support Services 12 4, , , (105.00) 0% Subtotal Support Sources 15,949, ,479, ,175, (3,304,522.00) -16% Non-Program Transactions Inter-fund Transfers 13 4,670, ,333, ,895, , % Instructional Service Payments 14 1,392, ,603, ,867, , % Other Non-Program Transactions 15 17, , , (15,207.00) -75% Subtotal Non-Program Transactions 6,080, ,957, ,767, , % TOTAL EXPENDITURES & OTHER FINANCING USES 45,975, ,191, ,550, (640,550.00) -1.23% 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 not categorized under Special Curriculum. 4 Activities such as Guidance and Nursing. 5 Activities such as Curriculum Development and Library Services. 6 Activities related to the Board & Superintendent. 7 Activities of School Principal Offices. 8 Activities associated with Accounting, Custodial Services, Utilities, Maintenance & Transportation. 9 Activities such as marketing, district wellness, technology, phones, postage and printing. 10 Property and Casualty Insurance. 11 Capital Lease for Scoreboards to be paid back with donations 12 Retirement benefits transferred to the Post Retirement Benefit Trust. 13 Transfer of funds from General Fund to the Special Education Fund (27) and Fund 46 Capital Projects. 14 Tuition Payments including those for Open Enrollment. 15 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 22,276, ,275, ,442, ,166, % 200 Benefits 7,938, ,520, ,322, , % 300 Purchased Services 1 7,466, ,924, ,498, (3,426,290.96) -29% 400 Non-Capital Objects 2 2,012, ,947, ,107, , % 500 Capital Objects 3 1,096, ,547, ,648, , % 600 Debt Retirement , (108,247.68) 100% 700 Insurance & Judgments 267, , , , % 800 Interfund Transfers 5 4,670, ,333, ,895, , % 900 Miscellaneous 245, , , , % TOTAL EXPENDITURES 45,975, ,191, ,550, (640,550.14) -1.23% Selected Object Definitions 1 Purchased Services Payments for services rendered by personnel who are not on the district payroll including capital project builders, architechts, etc. 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 state trust fund loan. 5 Interfund Transfers Transfer of Funds from General Fund to the Special Education Fund (27) and Capital Projects Funds. Expenses by Object Kimberly Area September Budget Hearing Expenses by Object Funds 10 & 27 $343,518 $4,334,263 $1,753,934 $4,062,318 $12,571,291 $874,200 $28,998,580 Salaries : 45.1% Benefits : 17.6% Purchased Services : 19.6% Non-Capital Items : 6.3% Capital Items : 2.7% Debt Services : 6.7% Insurance & Judgements : 0.5% Other Objects : 1.4% $11,319,596 18

22 Budget Comparison by Function Kimberly Area September Budget Hearing Other Non-Program Transactions Instructional Service Payments 14 Non-Program Transactions Other Support Services Debt Services Insurance & Judgments Central Services Business Administration School Building Administration General Administration Instructional Staff Services 5 Support Sources Other Special Needs Co-Curricular Activities Physical Curriculum Vocational Curriculum Regular Curriculum 2 Instruction ,000, ,000, ,000, ,000, ,000, ,000, ,000, Budget Unaudited

23 REVIEW OF MAJOR GENERAL FUND EXPENDITURE INCREASES/DECREASES BY OBJECT SALARIES 2017/2018 $24,442, / ,275,810 Increase $ 1,166,363 Salaries are anticipated to increase by approximately 5%. This includes salaries for new staff approved by the board including additional staff to accommodate increased students at the high school level, Sunrise, Janssen and Woodland. It also includes the health insurance stipend approved by the board and a budgeted increase based on additional projected revenue from the state as well as additional teacher compensation for experience and educational attainment. Salary and benefits for Special Education staff are accounted for in the Special Education Fund. BENEFITS 2017/2018 $ 9,322, /2017 8,520,381 Increase $ 801,773 Benefits are anticipated to increase by approximately 9%. The increase in benefits is related to the large increase in health insurance, additional benefits due to additional staff, increased percentage of benefits based on increased wages and additional family vs single insurance plans. PURCHASED SERVICES 2017/2018 $ 8,498, / ,924,414 Decrease ($-3,426,299) Purchased Services include payments to third parties for services they provide. Significant Purchased Services include:open Enrollment tuition costs $1,628,839, Utilities $1,576,015, Busing $1,170,400 Operational Services (primarily cost of contracted Cleaning Service) $895,900, Maintenance Services - $1,258,216. Contracted Personal (i.e. consultants, attorneys) Services and s few other miscellaneous contracted service payments. Included in Maintenance Services last year was the majority of the cost of the Indoor Athletic Facility. The Budget decreased by such a large amount due to carrying over $1.8 million from the budget and additional money in the budget allocated to the Indoor Athletic Facility. 20

24 REVIEW OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED NON-CAPITAL OBJECTS 2017/2018 $ 2,107, /2017 1,947,457 Increase $ 159,779 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 2016/2017 Budget are $1,248,091 for general supplies, $265,750 for computer software & components, $184,090 for media, $282,388 for textbooks, and additional money for paper and other miscellaneous non capital items. CAPITAL OBJECTS 2017/2018 $1,648, /2017 $1,547,919 Increase $ 100,362 Capital Objects include buildings, sites and equipment with a value over $1,000 per unit and computers with a value over $500 per unit and chromebooks. Significant 2017/2018 purchases include $130,000 for chromebooks as part of our mobile student computing initiative, $699,780 for outdated computers throughout the district, $350,000 for server/storage replacement as part of the technology plan, and the remainder for copier replacement, replacement of the district gator and other smaller equipment replacements throughout the district. 21

25 REVIEW OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED OPERATIONAL DEBT 2017/2018 $ / ,247 Decrease ( -$108,247) Included in Operational Debt are installment purchase (Capital Lease) payments and short-term borrowing costs to meet cash flow needs. The amount spent in 2016/2017 was the first lease payment for the scoreboards which will be paid back entirely with donations. INSURANCES 2017/2018 $341, /2017 $260,275 Increase $ 81,242 Included in insurances are costs associated with Liability, Property, Workers Compensation and Unemployment Insurance. Our Worker s Compensation Insurance significantly increased due to a bad claims year. There were also increases in property and liability insurance. In addition, we budget higher for unemployment insurance, not really knowing what this amount might be. INTERFUND TRANSFERS 2017/2018 $4,895, /2017 4,333,963 Increase $561,517 All Special Education costs are accounted for in a separate Fund 27. 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. There is an increase in the amount of money that has to be transferred to the Special Education Fund in 2017/2018 which is related to an increase in expenses mostly in salary and benefits. Additional aides and aide time was added in 17-18, as well as a high school special education teacher due to the additional students and needs. Salary and benefit expenditures for Special Education Staff are budgeted to increase by $374,

26 REVIEW OF MAJOR EXPENDITURE INCREASES/DECREASES BY OBJECT- CONTINUED OTHER 2017/2018 $295, / ,588 Increase $22,952 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. 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 510, , ,898 3, % Ending Fund Balance 547, , ,059-87, % TOTAL REVENUES & OTHER FINANCING 7,493,640 7,946,419 8,367, , % Instruction 6,002,784 6,345,681 6,714, , % Support Services 1,328,897 1,474,269 1,589, , % Non-Program Transactions 124, , ,500 28, % TOTAL EXPENDITURES & OTHER FINANCING 7,456,401 7,943,389 8,455, , % 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 refinancings in , future tax levies were reduced by approximately $3,451,118. Most likely our last opportunity for refinancing was in resulting in an additional reduction of $853,000 in debt. Total savings to Taxpayers through refinancing is $4.3 million. The Debt Service fund also include the debt for our energy efficiency projects and the $600,000 loan for the Indoor Athletic Facility. Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 424, , ,394-24, % Ending Fund Balance 333, , ,544-1, % TOTAL REVENUES & OTHER FINANCING 9,988,195 3,680,837 4,332, , % Long-Term Capital Debt 3,973,453 3,703,042 4,334, , % Refinancing 6,106,500 2, , % Long-Term Operational Debt % Other Long-Term Debt % Interfund Transfer % TOTAL EXPENDITURES & OTHER FINANCING 10,079,953 3,705,600 4,334, , % INDEBTEDNESS, END OF YEAR 23,135,000 24,465,000 20,669,935-3,795, % 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). A majority of the balance in this fund is Fund 41 Capital Projects money. Donations for future replacement of the turf are recorded here as well as donations for the indoor facility. In addition, Fund 46 is included here. 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. $620,000of Fund 41 Capital Improvement Fund was used for the indoor facility. Also, the revenue from the bond and the expenses for the energy efficiency projects is recorded here. 24

28 BUDGET ADOPTION, CAPITAL PROJECT FUNDS (FUND 41, 45, 46 & 49) Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 2,180,284 2,791,420 6,534,493 3,743, % Ending Fund Balance 2,791,420 6,534,493 4,247,087-2,287, % TOTAL REVENUES & OTHER FINANCING 690,845 4,705, ,100-4,480, % Instruction 0 27, , % Support Services 79, ,178 2,376,869 1,441, % Non-Program Transactions , ,637 0% TOTAL EXPENDITURES & OTHER FINANCING 79, ,691 2,512,506 1,549, % 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 increase our participation in the lunch program. 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 256, , ,423 75, % Ending Fund Balance 250, , ,651 70, % TOTAL REVENUES & OTHER FINANCING 1,523,785 1,676,221 1,704,405 28, % Support Services 1,530,230 1,601,055 1,634,177 33, % Non-Program Transactions % TOTAL EXPENDITURES & OTHER FINANCING 1,530,230 1,601,055 1,634,177 33, % 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 $1,003,553. This district contributed $814,008 including TSA contributions to the trust this year. Interest income and realized gains (investment sold) were $760,383 These increases were offset by Trust fees of $70,265 and payments to retirees of $516,348. The value of the Trust as of 6/30/17 was $10,333,361. Since the District's initial contribution into Wisconsin OPEB trust in April of 2012, the investment has gained approximately $2.2 Million in investment earnings. Audited Unaudited Budget Dollar Percent Change Change Beginning Fund Balance 9,735,720 9,329,808 10,333,361 1,003, % Ending Fund Balance 9,329,808 10,333,361 10,610, , % TOTAL REVENUES & OTHER FINANCING 346,884 1,590, , , % Support Services 68,476 70,265 68,500-1, % Non-Program Transactions 684, , ,309 52, % TOTAL EXPENDITURES & OTHER FINANCING 752, , ,809 51, % 25