GERMANTOWN SCHOOL DISTRICT. Notice of Finance Committee Meeting February 24, :15 7:00 P.M.

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1 GERMANTOWN SCHOOL DISTRICT Notice of Finance Committee Meeting February 24, :15 7:00 P.M. Amy Belle Elementary School 3294 Willow Creek Rd. Colgate, WI I. Meeting Called to Order AGENDA II. III. IV. Roll Call Agenda Revisions and Approval Approve Minutes A. January 27, 2014 V. Consent - Review & Discuss A. February Voucher List VI. Unfinished Business A. 2014/2015 Budget Planning VII. New Business A. Monthly Purchase Requests Exceeding $15,000 & Purchasing/Project Bid Results B. Proposed Village of Germantown TID # 6 (Tax Incremental District) VIII. Reports: A. Monthly Financial Reports 1. General Fund Monthly Revenue & Expenditure Report 2. Month End Dashboards, Balance Sheet, Budget Revenue & Expense Reports B. General Reports and Other Financial Happenings IX. Adjourn Note: School Board members who are not members of the Finance Committee may be present at this Finance Committee meeting. Page 1

2 Finance Committee Background February 24, 2014 I. Meeting Called to Order II. Roll Call III. Agenda Revisions and Approval of Agenda IV. Approve Minutes A. January 27, 2014 (note that the December 9 minutes were changed to reflect Loth as absent excused) Attachment(s): Attached. Recommended Action: Approve as presented. V. Consent Review & Discuss A. February Vouchers List Attachment(s): Posted at FC Web Link. Recommended Action: Consent to Payment of Claims of vouchers as presented & reviewed. Reminder: Only the FC needs to consent and approve monthly vouchers. Based on policy, it does not go to the full BOE. VI. Unfinished Business Review, Discuss, and Recommend Action A. 2014/2015 Budget Planning At the last Finance Committee meeting Mr. Barney asked for an updated Summary Debt Schedule. Attached and posted at the Finance Committee web link is the report that has been used in previous years. Attachment(s): Summary Debt Schedule. Recommended Action: None. Page 2

3 VII. New Business Review, Discuss, and Recommend Action A. Monthly Purchase Requests Exceeding $15,000 & Project Bids Per policy the Finance Committee needs to approve and attest that due diligence was performed in the securing of quotes and bids, provided that it is practical to do so. Per Finance Committee request, this item is also included as an action item under the Finance Committee portion of the regular board agenda. Kaspersky Security Software $14,925 See attachment(s) B. Proposed Village of Germantown TID # 6 (Tax Incremental District) See attachment(s) VIII. Reports A. Monthly Financial Reports 1. January General Fund Monthly Revenue & Expenditure Report Revenues = $ 13,553,593 Expenditures = $ 2,878, All Funds - Month End Balance Sheets, Budget Revenue & Expense Report ALL reports will be updated and posted at FC web link after month is closed B. General Reports and Other Financial Happenings Voluntary Vision has been set up in our payroll system and approximately 65 employees are participating in the program. Attachment(s): None. Recommended Action: None. IX. Adjourn Page 3

4 GERMANTOWN SCHOOL DISTRICT Minutes of January 27, 2014 Finance Committee Meeting Held at MacArthur Elementary School W154 N11492 Fond Du Lac Ave Germantown, WI The meeting of the Finance Committee was called to order by Michael Loth at or about 6:30 p.m. Finance Committee Members Present: Sarah Larson, Tom Barney, Board President Soderberg. Other Board members may have been present. Also present was Ericksen, Holmes, Coley, Chapman, O Brien and other administrators/staff may have been present. 2. Motion by Barney, second by Larson to approve the agenda. Motion Carried. 3. Motion by Barney, second by Larson to approve the December 9, 2013 minutes with an adjustment to reflect that Mr. Loth was absent excused. Motion Carried. 4. Motion by Larson, second by Barney to consent to Payment of Claims of January 2014 vouchers. Motion Carried. 5. Ericksen reviewed preliminary estimates of the state imposed revenue limits. General discussions ensued. No action taken. 6. Ericksen reviewed the proposed 2014/2015 student fee background. General discussions ensued. Committee requested that this item be placed directly on the next regular board meeting agenda as an action item. 7. Motion by Barney and second by Larson to take to Board of Education with a positive recommendation to approve expenditures in the amount of $28,639 for Map software and to defer to full board the $80, Elmbrook School contract. Motion carried. 8. Ericksen presented and reviewed all agenda topics in the Reports section(s). 9. Motion by Barney, second by Larson to adjourn. Motion Carried. Adjourned at approximately 7:18 P.M. Richard Ericksen Recording Secretary Page 4

5 SUMMARY OF INDEBTEDNESS Annual Principal & Interest Payments Inside Revenue Controls Leases - Non-Referendum Debt General Obligations Bonds & Notes - Non-Referendum Debt Outside Revenue Bonds/Notes Fund 10/Fund 27/Fund50 "Non-Referendum Debt" "Referendum Debt" All Debt Fund 41 Fund 38 Fund 39 Roof Work $3 Million Cluster for Energy & Safety WRS Refi Yearly Yearly Yearly Skyward Comptr/Novel Sub-Total Energy Total All State Trust Total All Principal/Interest Pymt Principal/Interest Pymt Principal/Interest Pymt YEAR ENDING Leases Leases Tech. Leases Leases Leases Fund Loans Q-Bonds Q-Bonds GO Note GO Note Loans "Inside" Rev Controls "Outside" Rev Controls ALL DEBT YEAR ENDING 2011/2012 $38,702 $106,701 $145,403 $451,555 $596,958 $145,084 $0 $0 $94,493 $413,462 $653,039 $1,249,997 $2,265,313 $3,515, / /2013 $56,413 $128,570 $184,983 $396,548 $581,531 $23,902 $0 $0 $104,138 $587,140 $715,180 $1,296,711 $784,125 $2,080, / /2014 $17,711 $138,560 $156,271 $382,958 $539,229 $0 $0 $0 $102,438 $666,328 $768,766 $1,307,995 $0 $1,307, / /2015 $17,711 $138,561 $156,272 $236,089 $392,361 $0 $0 $105,738 $565,878 $671,616 $1,063,977 $1,063, / /2016 $0 $122,059 $122,059 $0 $122,059 $100,000 $0 $103,938 $569,838 $773,776 $895,835 $895, / /2017 $26,946 $26,946 $26,946 $100,000 $0 $107,138 $531,300 $738,438 $765,384 $765, / /2018 $140,000 $0 $105,000 $296,450 $541,450 $541,450 $541, / /2019 $370,000 $0 $102,626 $303,055 $775,681 $775,681 $775, / /2020 $367,000 $0 $105,250 $673,378 $1,145,628 $1,145,628 $1,145, / /2021 $0 $140,000 $102,750 $532,440 $775,190 $775,190 $775, / /2022 $280,000 $0 $0 $280,000 $280,000 $280, / /2023 $275,000 $275,000 $275,000 $275, / /2024 $305,000 $305,000 $305,000 $305, / /2025 $0 $0 $0 $0 2024/ / / / /2027 Total By Type $130,537 $661,397 $791,934 $1,467,150 $2,259,084 $168,986 $1,077,000 $1,000,000 $1,033,509 $5,139,269 $8,418,764 $10,677,848 $3,049,438 $13,727,286 Year-End Outstanding Principal Balance Inside Revenue Controls Leases - Non-Referendum Debt General Obligations Bonds & Notes - Non-Referendum Debt Outside Revenue Bonds/Notes Fund 10/Fund 27/Fund50 "Non-Referendum Debt" "Referendum Debt" All Debt Fund 41 Fund 38 Fund 39 Roof Work $3 Million Cluster for Energy & Safety WRS Refi Year-End Year-End Year-End Skyward Comptr/Novel Sub-Total Energy Total All State Trust Total All Outstanding Balance Outstanding Balance Outstanding Balance YEAR ENDING Leases Leases Tech. Leases Leases Leases Fund Loans Q-Bonds Q-Bonds GO Note GO Note Loans "Inside" Rev Controls "Outside" Rev Controls ALL DEBT YEAR ENDING 2011/2012 $88,440 $438,039 $526,479 $958,826 $1,485,305 $23,094 $1,077,000 $1,000,000 $835,000 $4,010,000 $6,945,094 $8,430,399 $765,000 $9,195, / /2013 $34,472 $309,602 $344,074 $595,120 $939,194 Retired $1,077,000 $1,000,000 $750,000 $3,545,000 $6,372,000 $7,311,194 Retired $7,311, / /2014 $17,200 $279,498 $296,698 $229,617 $526,315 $1,077,000 $1,000,000 $665,000 $2,995,000 $5,737,000 $6,263,315 $6,263, / /2015 Retired $145,869 $145,869 Retired $145,869 $1,077,000 $1,000,000 $575,000 $2,535,000 $5,187,000 $5,332,869 $5,332, / /2016 $26,946 $26,946 Retired $977,000 $1,000,000 $485,000 $2,060,000 $4,522,000 $4,522,000 $4,522, / /2017 Retired $877,000 $1,000,000 $390,000 $1,610,000 $3,877,000 $3,877,000 $3,877, / /2018 $737,000 $1,000,000 $295,000 $1,380,000 $3,412,000 $3,412,000 $3,412, / /2019 $367,000 $1,000,000 $200,000 $1,135,000 $2,702,000 $2,702,000 $2,702, / /2020 Retired $1,000,000 $100,000 $510,000 $1,610,000 $1,610,000 $1,610, / /2021 $860,000 Retired Retired $860,000 $860,000 $860, / /2022 $580,000 $580,000 $580,000 $580, / /2023 $305,000 $305,000 $305,000 $305, / /2024 Retired Retired Retired Retired 2023/ / /2025 End Report Page 5

6 GERMANTOWN SCHOOL DISTRICT TO: Finance Committee TOPIC: Purchases Exceed $15,000: FROM: Ric Ericksen FINANCE COMMITTE MEETING: Director of Business & Auxiliary February 19, 2014 Services Marc Gabrysiak Directory of Technology Kaspersky Antivirus Software Renewal - $ 14,925 On the February 19 th Finance Committee voucher list, there is an item for approval in the amount of $14, 925. That purchase is for a three year renewal of the district s computer antivirus software. Based on the amount of expenditure, I am assuming in advance that the finance committee will be interested in what the expenditure is for and why we re doing a three year renewal instead of a one year. When I contacted the reseller (CDW-G), I asked for renewal prices on both a one year, as well as a multi-year option. I received options for one year and three year renewals. The one year cost would be $8985, and the three year is the above referenced $14,925. The cost savings by doing the three year renewal is $12,030 for three total years over three years at the one year rate. The expenditure is being done out of the Technology department budget and is a regularly planned for recurring expense. If the Finance Committee has any questions I would be happy to answer those. Marc Gabrysiak GSD Director of Technology Attachment(s): None. RECOMMENDATION: approval as presented. Take to Board of Education with a positive recommendation for Page 6

7 GERMANTOWN SCHOOL DISTRICT TO: Finance Committee BACKGROUND TOPIC: Proposed Village of Germantown TID #6 (Tax Incremental District) FROM: Ric Ericksen FINANCE COMMITTE MEETING: Director of Business & Auxiliary February 24, 2014 Services Update From Village of Germantown On February 19 th I met with Village Administrator Dave Shornack to review the details of this subject as presented in the initial correspondence received by the district on February 11 th. He advised me that new information has caused him to hold off on making the project details available and may require an adjustment in the TID boundary that was contained in the correspondence. For example, further research on defined wetlands. It appears that this information will be available next week. Therefore, in order to avoid confusion I am not including any of the initial correspondence in the packet. Suffice it to say that the proposed TID boundaries encompass an area in a northwesterly direction on the west side of Maple road (just west of Menards). Additionally, the boundary goes south across Appleton Avenue just west of Walmart. Village of Germantown Meeting Dates On March 24, 2014 a meeting regarding this subject will be held at Germantown Village Hall. This is a public hearing in which interested parties may express their views. At this meeting I could speak representing the school board s position or not speak. Typically I do not speak. On March 24, 2014 a Joint Review Board (JRB) will convene and all overlapping taxing jurisdictions are afforded a spot on this review board. The purpose of this meeting will be to organize the JRB. For example, elect a chair and schedule the next meeting. Germantown School District Representation Since 2007 I have represented the district on the TID Joint Review Boards and all other TID matters. It has been my view that TID s are an important financial tool for a community to stimulate economic development. Previous School Boards have generally supported this view. However, NOT all share this view. Know that there are usually financial consequences to an overlapping taxing authority, such as a school district. For example, incremental tax revenue will be frozen (it is used to pay off the infrastructure debt incurred inside the TID) within the TID until such time as the TID is brought back onto the tax rolls. That is on the one hand. On the other hand, our state equalized aid may be positively impacted by having the TID. Supporting or not supporting the TID is a Board of Education public policy decision. I will represent the Board of Education accordingly at both March 24 meetings. Page 7

8 Background and Definitions TID s are probably the most complex variable associated with school finance. As mentioned it may or may not favorably impact school equalized aid and, ultimately, local taxes. This is enhanced by the state imposed revenue control formula. Below is an extract of a report prepared for the Board of Education on May 23, 2011 and essentially repeated at the September 24, 2012 Finance meeting. It may be helpful to review. Committee members had expressed an interest in learning about this topic. TID means tax incremental district. The associated financing term is referred to as TIF, which means tax incremental financing. TID is a geographic area defined in a municipal resolution which authorizes its creation. TIF is the financing methodology which can be explained as tax revenue from the growth in the tax base within the TID (paid by the property owners) that is used to pay-off the bonds issued to finance the infrastructure of the TID (i.e. the created industrial park). The table below shows the probable tax impact of existing TID s on the Germantown School District. Source: Fall 2010 and 2011 Department of Revenue Equalized Value Reports. Values are for the entire taxable property value within the School District of Germantown boundaries: Municipality Village of Germantown (1) Delta Equivalent tax rate Delta: 2010 TID Value Included 2010 TID Value Excluded (2) $ Billion $ Billion [$ 133 million].42 cent per $1,000 of equalized value (1) Jackson, Colgate, Richfield, and Polk do not have TID s (2) Germantown School District only taxes on the Excluded Values 2011 TID Value Included 2011 TID Value Excluded (2) $ Billion $ Billion [$ 118 million] Also note: Without a TID, the portion of taxes allocated to the non-tid communities would be less..38 cent per $1,000 of equalized value Attachment(s): None. But watch for a separate next week. Recommendation: Take to the Board of Education with a positive recommendation to approve assigning Ric Ericksen, Director of Business & Auxiliary Services to the TID # 6 Joint Review Board as a representative of the Germantown School District and attend all relative meetings. Page 8