5 Year Financial Projection FY2019 FY2023. December 21, 2017

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1 5 Year Financial Projection FY2019 FY2023 December 21, 2017 Jason P. Demerath, SFO, CSRM Director of Business Services

2 TABLE OF CONTENTS 1 l Memorandum to Board of Education 2 l Enrollment 4 l Revenue 4 l Projected Tax Levy & Annual Taxes 5 l Expenses 6 l Annual Operating Surplus (Deficit) 7 l Fund Balance Impact 7 l Comparison to Referendum Projection 8 l Summary 9 l Revenue Limit and Levy Explanation 10 l High Level Summary of Key Variables 11 l Key Assumptions Report 12 l Fund 10 General Fund History and Projection Summaries (Base Scenario of 2% salary/wage increase) 16 l Tax Levy & Mill Rate Analysis 17 l Fund 10 Revenues by Source 18 l Fund 10 Expenditures by Object 19 l Fund 39 Levy

3 BUSINESS SERVICES 201 PARK STREET FORT ATKINSON, WI P: F: MEMORANDUM To: Board of Education From: Jason P. Demerath, SFO, CSRM, Director of Business Services Date: December 21, 2017 Re: 5 Year Financial Projection ( ) Attached you will find materials related to the five year financial projection as outlined below. I will note here that we have changed the tool used to complete the 5 year projection. For the past few years, we have been utilizing another forecast model that is popular in Wisconsin. This year, for the first time, we are utilizing the 5Cast model. This model is provided by Forecast5 Analytics and is the other major model utilized by school districts in Wisconsin. It is also utilized in other states across the country as well. While the prior model is a high quality model that many districts in Wisconsin use, the decision was made to switch forecast model providers for a couple of reasons: 1. 5Cast is a powerful analytical tool, which now includes the ability to forecast year end position each month throughout the fiscal year following reconciliation. Given that last year was the first year in several that the general fund needed to support the food service fund, I felt it would be a valuable tool in forecasting the year end position of the food service fund in order to make adjustments more quickly. We are currently working with data through November 30, 2017 to develop year end forecasts. 2. Given our involvement in the Smarter School Spending model with GFOA, the use of data is crucial to the implementation of that model. By utilizing this tool beginning this year we are beginning to build a database of forecasts and analytics to better implement the tenants of that model. 3. There are several districts involved in the Smarter School Spending model in other areas of the country that are utilizing this same tool along with its complimentary analytical tools. This allows for easier conversations and comparisons among that group. If you have any further questions regarding this change in forecast model software, please do not hesitate to contact me. Revenue Limit and Levy Explanation Given the relatively short tenure of some of our Board members, I thought it might be useful to include this summary of major factors that affect the budget of school districts in Wisconsin. These explanations utilizing our local data are attached on page 9. Please feel free to read these concise explanations of some of our important budget factors. Comparison of Two (2) Projection Scenarios In prior years, the Board was given one financial projection, as many variables can create many different projections. However, this year I will be sharing two projections with you that will have only one difference in assumptions. That difference will be in what is assumed for salary and wage increases. When developing the November 2016 referendum we had assumed a 2% increase in salaries and wages for each year into the future. At this point it is becoming apparent that the CPI alone for next year will likely fall between 2.0% 2.1% and that other districts have been discussing total raises in the 3% range. As a result, I felt it prudent to not only share the projection with the 2% increase in salaries and wages, but to also provide a comparison scenario with salaries and wages increasing 3% per year. The following narrative will compare these two projections with more detail attached to this memorandum for your review. Delivering opportunities and services students need to achieve their academic and personal potential 1

4 Enrollment The enrollment projection in both scenarios is the same. This projection uses the average enrollment in EC, 4K, and 5K over the past five years and carries that forward. Each year is then adjusted by a 5 year cohort survival ratio in each grade. For example, the model looks at the number of kids going from fifth to sixth grade over the past five years to determine a survival ratio for that cohort and then applies that to the number of students moving from fifth to sixth grade each year in the future. This method is applied for every grade level for each year moving forward. Below is a graphical representation of revenue limit FTE from FY2013 through FY2023. Historical & Projected Resident Student Count 2,840 2,820 2,800 2,780 2,760 2,740 2,720 2,700 2,680 2,660 FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023 Current Year FTE Current Membership Average The data behind this graph can be found on the next page. Delivering opportunities and services students need to achieve their academic and personal potential 2

5 The data behind the projection on the prior page is shown below. There are a couple of items of note in the table above. The first section is residents enrolled in our district followed by residents open enrolled into other districts. You can see that residents enrolled in our district has a five year cumulative decrease of 105, while residents open enrolled into other districts has a five year cumulative increase of 160. This results in a five year cumulative change in total resident students of 55, therefore the increase in revenue limit FTE s. However, our number of students open enrolling into other districts has more than doubled in the last six years ( ) and is projected to continue at that rate over the next five years ( ). This is a trend that is important for the Board of Education and administration to take note of and one that needs to be addressed within the next couple of years before we begin having more students open enroll out than in. Because of this open enrollment trend, even though our revenue limit FTE is increasing, we can see at the very bottom of the chart that students in seats in the district has a projected five year cumulative decrease of 85 students. Delivering opportunities and services students need to achieve their academic and personal potential 3

6 Revenue Total general fund revenues between the two scenarios are the same as the only difference is on the expense side in salaries and wages. There is a slight difference in aid versus the tax levy in future years since the more a district spends the more aid we would garner as a result of shared costs with the State. However, total revenues remain unchanged. Below is a table outlining total revenue projections for the general fund: TOTAL REVENUE PROJECTIONS (MILLIONS) $36.00 $35.50 $35.53 $35.42 $35.00 $34.83 $34.50 $34.00 $33.62 $33.71 $33.50 $33.31 $33.00 $32.50 $32.00 FY FY FY FY FY FY In the graph above, we will note the increase in FY2019 because of the current biennial budget, which grants an increase in per pupil aid of $204/student. That aid then drops by $24/student in FY2020 as outlined in the current biennial budget. We then see a drastic decrease in FY2021 because of our non recurring referendum for $2.25 million expiring at the end of the fiscal year. One important note about planning at that time is that we will know the result of the state budget, which may or may not result in an increase in revenue. Those changes can then be incorporated into any budget and referendum planning that may take place at that time. Projected Tax Levy & Annual Taxes Below we have the projected Mill Rate along with the tax levy effects on homes of various values: $10.00 $11.15 $11.37 $10.90 $10.99 $11.07 MILL RATE ANALYSIS $10.36 $10.05 $9.74 $7.77 $7.46 $7.07 $5.00 $0.00 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Fund 10 Fund 38 Fund 39 Fund 41 Fund 80 Delivering opportunities and services students need to achieve their academic and personal potential 4

7 We can see from the chart and table above that under the current three year referendum (FY2018 through FY2020) the mill rate and tax effect on a home of any value is less than any of the prior five years. We can also see the tax effect when the current non recurring referendum expires going into FY2021. These projected lower tax rates and taxes provide an opportunity for the District to look at again defeasing (prepaying) debt while maintaining a stable tax levy as well as planning for the expiration of the current operational referendum. Total taxes on a home between the two different scenarios only vary about $15 $20 all the way out in FY2023, with less variation in earlier years, therefore only the table from the base scenario is included here. Expenses This is the area that varies between the two projections because of salary and wage increases at 2% per year in the base scenario and 3% per year in the second scenario. This difference will also then effect the annual operating surplus or deficit and use of fund balance as outlined in the next section. Below we have charts and graphs that illustrate the differences between the two scenarios in salary and benefit expenses, as well as total expenses, in the general fund: Delivering opportunities and services students need to achieve their academic and personal potential 5

8 Annual Operating Surplus (Deficit) With the difference in expenses due to the increased salary and benefit costs, there is a difference in our annual surplus/deficit in the general fund. The graph below illustrates the surplus/deficit in each year with the 2% salary increases: In contrast, the chart below illustrates the surplus/deficit in each year with the 3% salary increases: Delivering opportunities and services students need to achieve their academic and personal potential 6

9 Fund Balance Impact Because of the difference in expenses, resulting in differences in the annual operating surplus or deficit, we begin to affect our fund balance as well in the general fund. With revenues not changing under either scenario, we then begin pulling the annual difference from fund balance without any new revenues: Comparison to Referendum Projection As a point of comparison, below is the financial projection that was used during referendum planning in As opposed to comparing every data point in this projection with all of the data previously shared in this memo, I will leave it up to the reader to review the following pertinent data points: Revenues & Expenditures; Surplus (Deficit); Mill Rate; Tax Levy based on home value. Delivering opportunities and services students need to achieve their academic and personal potential 7

10 Summary In summary, as we begin our preparations for the fiscal year budget I would offer the following considerations: Open Enrollment As mentioned earlier in the memo, while our resident student count has decreased the last five years, the trend of resident students open enrolling out is doubling every five years. At the same time, the trend of students from other districts coming into Fort Atkinson remains stable. We should be acutely aware of these trends and consider efforts to reverse it, or at least halt any growth in students leaving our district to attend elsewhere. Salary and Wage Increases As mentioned previously, we are assuming that CPI will come in somewhere between 2.0% 2.1% for use in compensation for We are also hearing that other districts are trending towards 3% increases. Given our compensation model is largely market and CPI based, it is imperative to understand the differences in the projection between allocating 2% and 3% in salary and wage increases. Additional Per Pupil Aid As covered in the revenue section in this memo, we are assuming no additional revenue limit increase or per pupil aid granted by the State other than what is already contained in the current state budget. One advantage of having this current three year referendum is that we will be able to see what is contained in the next state budget before going to referendum again (this consideration was part of the planning process last year). Any additional revenue granted by the State would obviously offset future deficits as projected, but that may depend on the elections in November 2018 and the subsequent state budget. Given both scenarios outlined here, we would still end FY2019 with a small surplus if no additional expenses were added to the budget. This will be a consideration in the budget process and should be a consideration in the strategic planning process as well. Fund Balance Level As you can see on the prior page, our general fund ending fund balance has increased over the past several years and is projected to increase next year as well before dipping in FY2020 with no new state revenue as we end our current three year referendum. Depending on actions taken in the next state budget, the Board may be able to consider utilizing some of this fund balance towards facilities improvements to improve instructional programming, student safety and security, and the useful life of our facilities. As a point of reference, our fund balance the last time we short term borrowed was in the $7.5 million range. As illustrated on the prior page, right now we are looking to be in the $9.5 $10.5 million range at the end of the current referendum. Given the new forecasting tool we are using, we should be able to more accurately project our cash reserve needs to make it through short times of the year, which will provide a solid foundation from which to make decisions about fund balance. Overall, these as well as other factors will need to be considered as we build future budgets and the upcoming strategic plan. It is also important to keep in mind that this projection is a snapshot of one point in time and factors can change quickly and frequently. With this new forecasting tool, our base scenario can be updated quickly to analyze the impact of changes as they come our way. As always, should you have any questions regarding this memorandum or the financial projection, as well as any other questions you may have about other items, please do not hesitate to contact me. Delivering opportunities and services students need to achieve their academic and personal potential 8

11 Revenue Limit and Levy Explanation Why is the Revenue Limit Important? A district's revenue limit is the maximum amount of revenue that may be raised through state general aid and property tax for the General, Non Referendum Debt, and Capital Expansion Funds, also referred to % C as Funds 10, 38, and 41 respectively. The revenue limit accounts for 89.4% of the total Fund 10 Revenue. 89.4% 10.6% Revenue Limit with all exemptions 31,134, % All other Fund 10 Revenue 3,692, % Total Fund Revenue 34,826, % % Controlled Revenue There is an inverse relationship between equalization aid and property taxes. As state aid falls, property taxes will rise. As state aid rises, property taxes will decrease. The tax levy is calculated as follows: Revenue Limit Equalization Aid Computer Aid Allowable Levy The revenue limit formula calculates how much money a district can raise through levies and state aid. Here is a breakdown of revenues recorded as equalization aid and the local tax levy. 53.6% Aid Revenue Limit: Aid vs. Levy Revenue Limit with all exemptions 31,134,566 Equ (less) Equalization Aid (16,699,709) 53.6% Rev Revenue Limit Levy 14,434, % Aid vs. Levy The breakdown of the Levy: Revenue Limit Levy $14,372,923 Referendum Approved Debt Levy $825,075 Community Services Levy $0 Total School Based Levy $15,197,998 Fund 10 Levy Fund 38 Levy Fund 41 Levy Equalized Property Value $1,466,649,506 Revenue Limit Mill Rate $

12 HIGH LEVEL SUMMARY OF KEY VARIABLES FORT ATKINSON SD BASE SCENARIO - 5-YEAR AVG FOR EARLY GRADE ENROLLMENTS ACTUAL BUDGET PROJECTIONS FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY 2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 FTE 2,825 2,811 2,738 2,737 2,720 2,729 2,719 2,748 2,757 2,773 2,783 Per Pupil Revenue Limit Per Pupil Categorial Aid Prop Valuation Growth 0.00% 1.97% 2.77% 3.10% 0.25% 3.39% 2.50% 2.50% 2.50% 2.50% 2.50% Fund 10 Revenues $29,639,557 $30,808,895 $32,178,211 $32,540,250 $32,524,408 $34,826,956 $35,526,524 $35,424,032 $33,312,129 $33,620,077 $33,711,823 Fund 10 Expenses $29,358,311 $31,108,871 $30,315,975 $32,345,807 $32,370,978 $34,351,057 $35,117,813 $36,344,431 $37,611,798 $39,049,028 $40,649,130 Margin/Shortfall $281,246 ($299,976) $1,862,236 $194,443 $153,430 $475,899 $408,711 ($920,399) ($4,299,669) ($5,428,951) ($6,937,307) Ending Fund Balance $8,503,447 $8,203,471 $10,065,707 $10,260,150 $10,413,580 $10,889,479 $11,298,190 $10,377,791 $6,078,122 $649,171 ($6,288,135) Fund Balance as % of Expenditures 28.96% 26.37% 33.20% 31.72% 32.17% 31.70% 32.17% 28.55% 16.16% 1.66% 15.47% Total Levy $15,189,717 $15,189,717 $14,959,853 $15,557,795 $15,700,579 $15,198,090 $15,106,345 $15,006,534 $12,274,383 $12,078,978 $11,730,908 Mill Rate $11.15 $11.37 $10.90 $10.99 $11.07 $10.36 $10.05 $9.74 $7.77 $7.46 $7.07 Recurring Ref to Exceed Rev Limit $0 $0 $0 $0 $0 $1,750,000 $0 $0 $0 $0 $0 Non Recurring Ref to Exceed Rev Limit $694,000 $694,000 $1,750,000 $1,750,000 $1,750,000 $2,250,000 $2,250,000 $2,250,000 $0 $0 $0 Energy Efficiency Exemption $0 $100,000 $130,000 $0 $0 $0 $0 $0 $0 $0 $0 10

13 KEY ASSUMPTIONS REPORT FORT ATKINSON SD BASE SCENARIO - 5-YEAR AVG FOR EARLY GRADE ENROLLMENTS ACTUAL BUDGET PROJECTIONS FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY 2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 Membership Assumptions FTE Membership 2,825 2,811 2,738 2,737 2,720 2,729 2,719 2,748 2,757 2,773 2,783 % increase 0.50% 2.60% 0.04% 0.62% 0.33% 0.37% 1.07% 0.33% 0.58% 0.36% Summer School % increase 21.74% 41.11% 5.51% 1.49% 6.06% 0.00% 0.00% 0.00% 0.00% 0.00% Headcount 3,024 2,983 2,898 2,892 2,857 2,842 2,828 2,828 2,812 2,806 2,757 % increase 1.36% 2.85% 0.21% 1.21% 0.53% 0.49% 0.00% 0.57% 0.21% 1.75% Open Enrollment In (Student Count) Open Enrollment Out (Student Count) Net OE (23) (45) (104) Revenue Limit Assumptions Revenue Limt Per Pupil Increase $50 $75 $75 $0 $0 $0 $0 $0 $0 $0 $0 Per Pupil Categorical Aid Increase $50 $75 $150 $150 $250 $450 $654 $630 $630 $630 $630 Recurring Ref to Exceed Rev Limit $0 $0 $0 $0 $0 $1,750,000 $0 $0 $0 $0 $0 Non Recurring Ref to Exceed Rev Limit $694,000 $694,000 $1,750,000 $1,750,000 $1,750,000 $2,250,000 $2,250,000 $2,250,000 $0 $0 $0 Energy Efficiency Exemption $0 $100,000 $130,000 $0 $0 $0 $0 $0 $0 $0 $0 Private School Voucher Students Private School Voucher Expense $0 $0 $0 $0 $31,876 $24,528 $25,179 $25,779 $26,379 $26,979 $27,579 Tax Levy Assumptions Fund 10 Levy $11,934,191 $11,889,781 $12,888,340 $13,522,411 $12,931,443 $14,372,923 $14,280,020 $14,179,259 $11,451,408 $11,255,553 $10,904,270 Fund 38 Levy $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fund 39 Levy $3,193,998 $3,240,634 $2,011,683 $2,009,288 $2,743,040 $825,075 $826,325 $827,275 $822,975 $823,425 $826,638 Fund 41 Levy $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fund 80 Levy $58,384 $58,384 $58,384 $26,096 $26,096 $0 $0 $0 $0 $0 $0 Fund 10 Chargeback Levy $3,144 $918 $1,446 $0 $0 $92 $0 $0 $0 $0 $0 Total Levy $15,189,717 $15,189,717 $14,959,853 $15,557,795 $15,700,579 $15,198,090 $15,106,345 $15,006,534 $12,274,383 $12,078,978 $11,730,908 % increase 0.00% 1.51% 4.00% 0.92% 3.20% 0.60% 0.66% 18.21% 1.59% 2.88% October Property Valuation 1,362,437,467 1,335,646,112 1,372,601,724 1,415,148,214 1,418,621,859 1,466,649,506 1,503,315,744 1,540,898,638 1,579,421,104 1,618,906,632 1,659,379,298 % increase 1.97% 2.77% 3.10% 0.25% 3.39% 2.50% 2.50% 2.50% 2.50% 2.50% Mill Rate $11.15 $11.37 $10.90 $10.99 $11.07 $10.36 $10.05 $9.74 $7.77 $7.46 $7.07 Major Expense Assumptions All Funds Salaries & Benefits 25,571,200 26,230,939 26,168,532 27,680,148 28,378,978 29,829,065 30,665,044 31,553,145 32,494,178 33,486,431 34,529,552 % increase 2.58% 0.24% 5.78% 2.52% 5.11% 2.80% 2.90% 2.98% 3.05% 3.12% Effect of Assumptions Fund 10 Revenues $29,639,557 $30,808,895 $32,178,211 $32,540,250 $32,524,408 $34,826,956 $35,526,524 $35,424,032 $33,312,129 $33,620,077 $33,711,823 Fund 10 Expenses $29,358,311 $31,108,871 $30,315,975 $32,345,807 $32,370,978 $34,351,057 $35,117,813 $36,344,431 $37,611,798 $39,049,028 $40,649,130 Margin/Shortfall $281,246 ($299,976) $1,862,236 $194,443 $153,430 $475,899 $408,711 ($920,399) ($4,299,669) ($5,428,951) ($6,937,307) Ending Fund Balance $8,503,447 $8,203,471 $10,065,707 $10,260,150 $10,413,580 $10,889,479 $11,298,190 $10,377,791 $6,078,122 $649,171 ($6,288,135) Fund Balance as % of Expenditures 28.96% 26.37% 33.20% 31.72% 32.17% 31.70% 32.17% 28.55% 16.16% 1.66% 15.47% 11

14 Fund 10 - General Fund - History Summary Fort Atkinson School District Base Scenario - 5-Year Avg for Early Grade Enrollments ACTUAL REVENUES & EXPENDITURES BUDGET FY FY % FY % FY % FY % FY % REVENUE Local Sources $12,182,843 $12,121, % $13,110, % $13,777, % $13,149, % $14,576, % State Sources $15,743,760 $16,505, % $17,095, % $16,474, % $17,220, % $18,138, % Federal Sources $577,477 $902, % $720, % $629, % $657, % $643, % Other $1,135,478 $1,278, % $1,252, % $1,658, % $1,496, % $1,468, % TOTAL REVENUE $29,639,557 $30,808, % $32,178, % $32,540, % $32,524, % $34,826, % EXPENDITURES Salary and Benefits $20,562,681 $21,151, % $21,001, % $21,980, % $22,439, % $23,397, % Other Objects $8,795,630 $9,956, % $9,314, % $10,365, % $9,931, % $10,953, % TOTAL EXPENDITURES $29,358,311 $31,108, % $30,315, % $32,345, % $32,370, % $34,351, % SURPLUS / DEFICIT $281,246 ($299,976) $1,862,236 $194,443 $153,430 $475,899 BEGINNING FUND BALANCE $8,222,201 $8,503,447 $8,203,471 $10,065,707 $10,260,150 $10,413,580 ENDING FUND BALANCE $8,503,447 $8,203,471 $10,065,707 $10,260,150 $10,413,580 $10,889,479 FUND BALANCE AS % OF EXPENDITURES 28.96% 26.37% 33.20% 31.72% 32.17% 31.70% 12

15 Fund 10 - General Fund - History Summary Fort Atkinson School District Base Scenario - 5-Year Avg for Early Grade Enrollments SURPLUS/DEFICIT ENDING FUND BALANCE (MILLIONS) $2,000,000 $1,500,000 $1,862,236 $12.00 $10.00 $8.00 $8.50 $8.20 $10.07 $10.26 $10.41 $10.89 $1,000,000 $6.00 $500,000 $281,246 $194,443 $153,430 $475,899 $4.00 $0 $2.00 Chart Data - DO NOT DELETE 8, , , , , ($500,000) -$299,976 FY FY FY FY FY FY $0.00 FY FY FY FY FY FY

16 Fund 10 - General Fund - Projection Summary Fort Atkinson School District Base Scenario - 5-Year Avg for Early Grade Enrollments BUDGET REVENUE & EXPENDITURE PROJECTIONS FY FY % FY % FY % FY % FY % REVENUE Local Sources $14,576,270 $14,483, % $14,382, % $11,654, % $11,458, % $11,107, % State Sources $18,138,743 $18,801, % $18,779, % $19,356, % $19,750, % $20,234, % Federal Sources $643,788 $643, % $643, % $643, % $643, % $643, % Other $1,468,155 $1,597, % $1,618, % $1,657, % $1,766, % $1,726, % TOTAL REVENUE $34,826,956 $35,526, % $35,424, % $33,312, % $33,620, % $33,711, % EXPENDITURES Salary and Benefits $23,397,307 $24,034, % $24,713, % $25,435, % $26,196, % $26,996, % Other Objects $10,953,750 $11,083, % $11,630, % $12,176, % $12,852, % $13,652, % TOTAL EXPENDITURES $34,351,057 $35,117, % $36,344, % $37,611, % $39,049, % $40,649, % SURPLUS / DEFICIT $475,899 $408,711 ($920,399) ($4,299,669) ($5,428,951) ($6,937,307) Change over Previous Year ($67,188) ($1,329,110) ($3,379,270) ($1,129,282) ($1,508,356) BEGINNING FUND BALANCE $10,413,580 $10,889,479 $11,298,190 $10,377,791 $6,078,122 $649,171 ENDING FUND BALANCE $10,889,479 $11,298,190 $10,377,791 $6,078,122 $649,171 ($6,288,135) FUND BALANCE AS % OF EXPENDITURES 31.70% 32.17% 28.55% 16.16% 1.66% % 14

17 Fund 10 - General Fund - Projection Summary Fort Atkinson School District Base Scenario - 5-Year Avg for Early Grade Enrollments SURPLUS / DEFICIT ENDING FUND BALANCE (THOUSANDS) $1,000,000 $475,899 $408,711 $14,000 $0 ($1,000,000) ($2,000,000) -$920,399 $12,000 $10,000 $8,000 $6,000 $10,889 $11,298 $10,378 $6,078 ($3,000,000) $4,000 ($4,000,000) ($5,000,000) -$4,299,669 $2,000 $0 $649 ($6,000,000) -$5,428,951 ($2,000) ($4,000) ($7,000,000) ($8,000,000) -$6,937,307 FY FY FY FY FY FY ($6,000) ($8,000) -$6,288 FY FY FY FY FY FY

18 TAX LEVY & MILL RATE ANALYSIS FORT ATKINSON SCHOOL DISTRICT BASE SCENARIO - 5-YEAR AVG FOR EARLY GRADE ENROLLMENTS ACTUAL BUDGET PROJECTIONS FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY 2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 TAX LEVY Fund 10 General Fund $11,934,191 $11,889,781 $12,888,340 $13,522,411 $12,931,443 $14,372,923 $14,280,020 $14,179,259 $11,451,408 $11,255,553 $10,904,270 Fund 10 Property Tax Charge Back $3,144 $918 $1,446 $0 $0 $92 $0 $0 $0 $0 $0 Total General Fund Levy $11,937,335 $11,890,699 $12,889,786 $13,522,411 $12,931,443 $14,373,015 $14,280,020 $14,179,259 $11,451,408 $11,255,553 $10,904,270 Fund 38 Non-Ref. Debt Svc. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fund 39 Ref. Approved Debt Svc. $3,193,998 $3,240,634 $2,011,683 $2,009,288 $2,743,040 $825,075 $826,325 $827,275 $822,975 $823,425 $826,638 Fund 41 Capital Expansion Fund $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fund 80 Community Service Fund $58,384 $58,384 $58,384 $26,096 $26,096 $0 $0 $0 $0 $0 $0 TOTAL LEVY $15,189,717 $15,189,717 $14,959,853 $15,557,795 $15,700,579 $15,198,090 $15,106,345 $15,006,534 $12,274,383 $12,078,978 $11,730,908 PERCENT CHANGE 0.00% -1.51% 4.00% 0.92% -3.20% -0.60% -0.66% % -1.59% -2.88% EQUALIZED VALUATION (TIF OUT) $1,362,437,467 $1,335,646,112 $1,372,601,724 $1,415,148,214 $1,418,621,859 $1,466,649,506 $1,503,315,744 $1,540,898,638 $1,579,421,104 $1,618,906,632 $1,659,379,298 Percent Change -1.97% 2.77% 3.10% 0.25% 3.39% 2.50% 2.50% 2.50% 2.50% 2.50% MILL RATE Fund 10 General Fund $8.76 $8.90 $9.39 $9.56 $9.12 $9.80 $9.50 $9.20 $7.25 $6.95 $6.57 Fund 38 Non-Ref. Debt Svc. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Fund 39 Ref. Approved Debt Svc. $2.34 $2.43 $1.47 $1.42 $1.93 $0.56 $0.55 $0.54 $0.52 $0.51 $0.50 Fund 41 Capital Expansion Fund $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Fund 80 Community Service Fund $0.04 $0.04 $0.04 $0.02 $0.02 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MILL RATE TOTAL $11.15 $11.37 $10.90 $10.99 $11.07 $10.36 $10.05 $9.74 $7.77 $7.46 $7.07 PERCENT CHANGE 1.97% -4.13% 0.83% 0.73% -6.41% -2.99% -3.08% % -3.99% -5.23% MILL RATE ANALYSIS $14.00 $12.00 $10.00 $11.15 $11.37 $10.90 $10.99 $11.07 $10.36 $10.05 $9.74 $8.00 $7.77 $7.46 $7.07 $6.00 $4.00 $2.00 $0.00 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Fund 10 Fund 38 Fund 39 Fund 41 Fund 80 16

19 Fund 10 Revenues by Source 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Tax Levy 11,934,191 11,889,781 12,888,340 13,522,411 12,931,443 14,372,923 14,280,020 14,179,259 11,451,408 11,255,553 10,904,270 Equalization Aid 15,413,563 16,057,535 16,408,374 15,795,362 16,297,365 16,699,709 16,798,745 16,837,984 17,409,620 17,792,443 18,268,572 Per Pupil Categorical Aid 696,000 1,251,450 1,814,196 1,752,660 1,758,330 1,769,670 1,777,230 Open Enrollment 1,063,751 1,127,421 1,173,210 1,184,171 1,276,339 1,347,580 1,522,340 1,542,906 1,581,548 1,691,188 1,650,528 Other Revenues 1,228,053 1,734,158 1,708,287 2,038,306 1,323,261 1,155,294 1,111,223 1,111,223 1,111,223 1,111,223 1,111,223 17

20 Fund 10 Expenditures by Object 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Salary 14,214,990 14,460,022 14,490,615 15,026,618 15,197,862 15,885,718 16,194,358 16,509,516 16,831,350 17,160,021 17,495,701 Benefits 6,347,691 6,691,902 6,510,881 6,953,743 7,241,307 7,511,589 7,840,249 8,204,414 8,604,050 9,036,486 9,500,459 Utilities & Fuel 974,884 1,054,494 1,059, , , ,683 1,005,692 1,040,891 1,077,322 1,115,029 1,154,055 Open Enrollment 464, , , , ,038 1,135,303 1,375,788 1,618,011 1,846,290 2,134,724 2,589,652 Transfers 2,932,955 3,510,665 3,442,594 3,969,015 3,969,640 4,359,449 4,438,670 4,623,821 4,818,055 5,022,034 5,236,339 Insurance & Judgements 223, , , , , , , , , , ,131 Other Expenses 4,199,710 4,559,519 3,862,383 4,418,982 3,813,802 4,188,740 3,968,667 4,047,880 4,129,050 4,268,979 4,354,793 18

21 Fund 39 Levy 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Fund 39 Levy 3,193,998 3,240,634 2,011,683 2,009,288 2,743, , , , , , ,638 19