PUBLIC HEARING. Proposed Budget 2015

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ATTACHMENT 14-020 PUBLIC HEARING April 1,

1 ATTACHMENT PUBLIC HEARING April 1, 2014 Proposed Budget 2015 Thomas Harper, CFO

2 AGENDA Remaining Timeline Recommendations from CBAC and EBAC Published Budget 5 Year Forecast Financial Trends Tax Rates Priority Updates 1

3 Budget Timeline Date Day Time Group Activity March 20, 2014 ~Des Moines Register March 26, 2014 Wednesday 6:30 p.m. Public March 29, 2014 Saturday 9:00 a.m. Public April 1, 2014 Tuesday 6:00 p.m. Board meeting April 8, 2014 Tuesday 6:00 p.m. Special Board Meeting April 15, 2014 Publication. *Must be days before Public Hearing PUBLIC Hoover High School Library - Public comment on proposed budget PUBLIC Central Campus, Board room - Public comment on proposed budget PUBLIC FORUM/PUBLIC HEARING Board Adoption and Certification of 2014 Budget *If Necessary Statutory deadline to submit 2015 budget to County for Certification 2

4 EBAC Recommendations Recommendations for Two areas of focus: 1. Health and Wellness 2. Technology Systems and Processes. Health and Wellness : A health and wellness coordinator was hired and she has implemented many wonderful new tools to assist our staff as they work towards improving their physical and mental health. These have met and in many cases exceeded our recommendations. What we are hoping for in the future is to continue with the things we are doing well and work to enhance other areas. We would like to see: Increased training on using the Healthy U site Improve the access to and use of Healthy U so it is more user friendly Apps that may be available to staff that will make the accessing of this information easier and more readily available (MyWellmark app) 3

5 EBAC Recommendations cont. Verify that fixes to errors found on the Wellmark site have been corrected so new hires will not have the same issues when taking the initial assessment. (i.e. told many who have never smoked that they should quit smoking) Continue to add more offerings and consider offerings led from within schools; allow staff within buildings to assist with training of the Healthy U offerings Seek out more discounts through local businesses and national chains for our staff Technology Systems: Our recommendations were to improve systems within our technology structure. Improvements were made to the back office this year. Improvements included such things as enhancing IFAS and adding the Nova Time system. We would like to see improvements to the front office or end users-the classrooms. A few of the ideas we discussed include: Purchasing software products with full implementation options so the classrooms are not limited on what can be done with those tools. I.e. infinite campus and echalk. 4

6 EBAC Recommendations cont. Do a better job of testing products prior to implementation to prevent issues from arising after teachers have the products in the classroom. An example of this is that in order to use infinite campus, echalk, etc. we have to open several different web browsers. It is so time consuming and frustrating to have to open Internet Explorer, Mozilla Firefox and Chrome in order to start my day. Then only to have gremlins enter your computer because of the different options within each browser. Improve bandwidth usage throughout the district Improve processes/software for SPED so that they can increase their efficiency in completing IEP s. This will improve their mental health, quality of life, as well as, increase their efficiency allowing them more time to focus on lesson planning Secure products and processes so that we can fully offer online registration to our families Review technology systems and capabilities before purchasing ebooks and other online programs Future suggestions beyond next year would include offering an online degree; improved and additional online courses; go one-to-one in all our schools; use PD to train staff who are not as comfortable with current and/or future technology enhancements and products 5

7 CBAC Recommendations Recommendations for Background: After addressing challenges associated with budget shortfalls in , a budget surplus in , the DMPS CBAC has discussed an investment strategy for based on a stable financial environment, considering current cash reserves and state funding levels. It is significant to note that the strategic intent of the CBAC has remained consistent since 2011, regardless of the budget situation. Over the years, the CBAC has recommended the following strategic priorities: Our recommendation seeks to highlight accomplishments within these strategic areas and to continue to build on our success. PK-3 education The CBAC recommends that DMPS Board add funding to provide for more opportunities for Pre-Kindergarten students and to continue to pursue funding streams and legislative remedies that will alleviate funding inequities in Pre-Kindergarten and special education. 6

8 CBAC Recommendations cont. Staffing The committee agrees that a stable staffing pattern is preferable to dramatic ups and downs, and the district should continue to be very cautious with staffing expansions to assure they can be sustained in the future. The CBAC recommends that DMPS Board highlight for stakeholders the returns from investments in increased staffing levels. We want to maintain adequate staffing at competitive wages in order to retain quality teachers and administrators, which has a direct correlation to student outcomes. Technology Improvements The CBAC recommends that DMPS Board highlight for stakeholders the returns from investments in technology improvements and adoption. Operational efficiencies should lead to greater capacity for central office administration. Adoption of technology in the classroom should lead to advances in student learning. Adopting new technology requires thoughtful implementation and clear insight into the benefits received. Adequate training and instruction are required for new users. The District is accountable that the tools are being utilized. Classroom advances need to consider how students and parents can access these tools from home if they don t have access to the internet. We must be clear on our expectations of these improvements and closely monitor the use of technology to ensure we attain the performance and benefits we expect. 7

9 CBAC Recommendations cont. Communications (Engagement) The CBAC would like to acknowledge the work done by Superintendent Ahart and his communication staff which has resulted in an award winning communications platform. We would ask the DMPS Board to capitalize on this success and set the conditions for enhanced community engagement. We need to encourage the school district to start looking for new models of parent engagement that recognize constantly shifting demographics in our schools, especially our ELL families, understanding that parent involvement strengthens student achievement. Other Observations Extracurricular activities: The CBAC recommends that the DMPS Board enthusiastically continue to invest in extracurricular activities in order to increase both student achievement and pride within the hallways of our schools. We want to applaud and support the great strides DMPS has made, but encourage the district to continue exploring funding sources that will expand the breadth of student activities choices, as well as ensure equity of availability of activities among buildings. 8

10 CBAC Recommendations cont. Long term planning: The CBAC understands that a budget is an allocation of resources in order to achieve a desired set out outcomes. The District is fortunate to have both the Student Outcomes statement and the School Board Belief statement to guide their actions. However, the CBAC feels more work can be done to demonstrate how district priorities align to the School Board Belief Statement so that Student Outcomes are achieved. We strongly feel that a clear set of priorities and a plan to achieve those priorities will help the community at large understand the challenges we face and how we intend to face 9

11 SUMMARY OF PUBLICATION: Published March 20,

12 General Fund Forecast Revenues DES MOINES PUBLIC SCHOOLS FISCAL YEARS GENERAL FUND FORECAST Re-estimated Budget Projected Projected Projected Projected Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Assume 3% Allowable Growth, Enrollment increases Assume 3% Allowable Growth, Enrollment increases Assume 3% Allowable Growth, Enrollment increases Assume 3% Allowable Growth, Enrollment increases Property Taxes 102,565, ,350, ,264,065 98,512,667 98,020,000 98,020,000 99,000,000 99,990,000 State Foundation Aid 163,593, ,923, ,868, ,596, ,259, ,715, ,411, ,358,000 AEA Flow Through 11,699,768 12,235,407 13,086,762 14,889,851 15,039,000 15,189,000 15,341,000 15,494,000 Other State Sources 27,142,929 1,804,032 2,477,187 1,311,000 1,324,000 1,337,000 1,350,000 1,363,000 Federal Sources 48,238,317 37,849,266 32,739,060 28,817,979 28,047,000 28,068,000 28,092,000 28,117,000 Other Local Sources 19,943,822 18,812,575 18,619,721 17,741,000 18,944,000 19,119,000 19,311,000 19,504,000 Intermediate & Other Sources 399, , , , , , , ,000 Transfer from Assigned Fund Balance 8,000,000 Total revenues & other sources of funds 373,582, ,526, ,622, ,435, ,200, ,015, ,072, ,393,000 Expenditures Instruction 235,003, ,179, ,577, ,045, ,512, ,438, ,186, ,936,728 - Student Support Services 20,061,831 20,309,171 21,196,135 21,620,058 22,052,000 22,493,000 22,943,000 23,402,000 Instructional Staff Support 11,497,451 12,199,079 12,731,850 12,986,487 13,246,000 13,511,000 13,781,000 14,057,000 General Administration 3,815,155 4,411,926 4,604,608 4,696,700 4,791,000 4,887,000 4,985,000 5,085,000 School Administration 18,378,278 18,767,628 19,587,268 19,979,013 20,379,000 20,787,000 21,203,000 21,627,000 Business & Central Administration 10,987,359 9,148,792 9,548,348 9,739,315 9,934,000 10,133,000 10,336,000 10,543,000 Plant Operation & Maintenance 29,687,463 30,961,440 32,313,620 32,959,892 33,619,000 34,291,000 34,977,000 35,677,000 Student Transportation 8,810,743 9,324,703 9,731,941 9,926,580 10,125,000 10,328,000 10,535,000 10,746,000 Technology, Textbook adoption 14,920,000 Total Support Services 103,238, ,122, ,633, ,908, ,146, ,430, ,760, ,137,000 Non-Instructional Expenditures 522, , , , , , , ,000 AEA Support 11,699,768 12,235,407 13,086,762 14,889,851 15,039,000 15,189,000 15,341,000 15,494,000 Transfers Out 174, ,879 Total expenditures & other uses 350,464, ,214, ,499, ,377, ,277, ,657, ,887, ,167,728 Excess Revenues over Expenditures 23,118,601 12,312,777 2,123,079 2,058,404 1,922,967 1,357,517 1,184,952 1,225,272 Beginning Fund Balance - Unassigned & Assigned 38,603,202 45,507,578 57,196,424 59,319,503 61,377,907 63,300,874 64,658,391 65,843, Ending Fund Balance 45,507,578 57,196,424 59,319,503 61,377,907 63,300,874 64,658,391 65,843,344 67,068,615 Solvency Ratio 12.6% 15.9% 15.6% 16.5% 16.6% 16.6% 16.6% 16.5% 11

13 Important Financial Trends Enrollment Certified Staffing Levels Fund Revenues & Expenditures Solvency Ratio Cash / Unspent Balance Tax Rate 12

14 Certified Enrollment 33,000 32,500 32,000 31,500 31,000 31,874 31,549 31,218 31,129 30,783 30,954 30,975 31,546 32,062 32,413 30,500 30,000 29,500 13

15 Classroom Staffing Students to Instructional Staff Students to All Classroom Staff (Est.) (Est.)

16 2014 and 2015 Comparison Total Revenues 2014 All Funds, by Fund Type DEBT SERVICE FUNDS 2% ENTERPRISE FUNDS 4% CAPITAL PROJECTS FUND 19% SPECIAL REVENUE FUNDS 4% OPERATING FUND (i.e. General Fund) 71% 15

17 General Fund 2015 Revenues Expenditures Local Funds 30.2% Federal, 7.5% Intermediary 1% Central Admin, 2.5 Plant Operations 8.6 Non Instruction, 0.1 AEA Support, 3.9 State, 62.2% Student Support, 18.2 Instruction,

18 2014 General Fund Revenues & Expenditures Federal 8.4% Intermediary 0.1% Revenues Expenditures Central Administration 2.3% Plant Operations 8.8% Non- Instruction 0.2% AEA Support 3.7% Local Funds 29.6% Student Support 18.0% State 61.9% Instruction 67.0% 17

19 Spending Authority / Cash Reserves 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Cash Reserves Spending Authority Board-adopted SA Minimum Threshold 3.4% $ % $ % 9.4% 6.6% $16.7 $16.3 $ % $ % $ % $ % 17.2% 17.1% $ $ * $70 $60 $50 $40 $30 $20 $10 $0 *2014 Cash reserves is unaudited In millions 18

20 Solvency Ratio 25.0% Solvency Ratio Goal 20.0% 15.0% 12.6% 15.9% 15.6% 16.5% 10.0% 5.0% 3.5% 5.6% 5.6% 5.4% 5.2% 3.3% 3.2% 6.0% 0.0% * 2015* *Unaudited 19

21 Key Measures, Objectives, and Questions Key Measure Objective Question(s) to be Answered Status Certified Enrollment Stable or growing Will our enrollment allow us to continue to be a viable district, educationally and financially? Solvency Ratio (General Fund) Unspent Authorized Budget (Longterm) Unspent Spending Authority (Current year) 15%, not to exceed 25% 10-15%, not to exceed 25% In conjunction with UAB, maintain or build Can we manage short- and longterm unexpected demands on cash? Are we within level minimums? What do trends tell us? Required SBRC workout plan if negative. Are we spending our USA generated for a given year? Are we using prior years spending authority? Are levels too high? 20

22 Key Measures, Objectives, and Questions, continued Key Measure Objective Question(s) to be Answered Status Salaries & Benefits 75% - 82%, then stabilize Are salaries & benefits at levels we can sustain? Currently 83% New money % vs. Settlement % vs. Change in Salaries / Benefits % Less than or equal to District Allowable Growth and/or at state average Are salaries at levels we can sustain? Are we competitive? Are our trends reasonable? Can differences be explained? 21

23 PROPOSED INVESTMENTS IN 2015 Expenditure $10.1 m Current expenses, increase cost (estimate) Includes: *Parent Engagement *ELL *Technology $ 2.5 m 30 additional FTE s $ 1.5 m Wellness 22

24 Discussion-TAX RATE Predictability Stay Steady and Stable Compelling reason for change 23

25 Property Tax Rates $20.00 $18.00 Total Tax Rate $18.03 $18.01 $18.02 $17.94 $17.79 $17.64 $17.64 $18.35 $18.35 $18.35 $17.99 $17.89 $16.00 $14.00 $12.00 $

26 TAX RATE COMPARISON UEN Estimated Iowa City Cedar Rapids TBD Davenport TBD Council Bluffs Sioux City TBD Des Moines Metro Estimated WDM TBD Johnston Urbandale TBD DCG Des Moines Indianola TBD Ankeny TBD 25

27 District Property Overall Recommended Tax Rate-No Change General Regular Inst. Support (exp.2016) Dropout Prevention Cash Reserve Levy Fiscal Year Proposed $ $ Management PPEL Regular Voted (exp. 2026) PERL Debt Service Total $ $ Decrease from Prior Year $(.35368) 26

28 PROPERTY TAX RATE DMPS CITY COUNTY 27

29 Property Taxes 2015 (preliminary) Taxing Authority- General Fund Type Authority Rate Total Maximum Exp. Date Regular Code NA NA Instructional Support Dropout Prevention Cash Reserve Voted $12.9m 10% cost 2016 Board $10.1m 5% of cost Annual Board $12.8m 25% Annual 28

30 Property Taxes 2015 (preliminary) Taxing Authority- Other 29

31 Focus on K-3 Education: Priority Updates 2014 and 2015 $ 10.3 million The District has made/will continue to make the following improvements in the K- 3 arena: *Of the 119 teachers that were restored 76 of those were in K-5 classrooms - $5.9M *Selected schools were targeted for a reading recovery program based on current reading assessments - $600K *System 44 was implemented which is a Tier 3 intervention for students in grades 3-5 who have significant gaps in their foundational skill knowledge - $150K *Reading and math support positions were staffed to be consistent with overall staffing ratios *Journey s literacy materials were incorporated into the classroom - $1.7M *In 14 a K-5 Math adoption will be incorporated into the classroom (including digital implementation) - $1.7M In 15 the District will adopt the Fast Assessment for K-3 as this is a new state assessment - $280K 30

32 Priority Updates 2014 and 2015 Build Sustainable staff back into the buildings: with an additional $49.2 million from SWP $14.2 million During 14 we restored the following positions: *119 teachers - $9.33M *64 Middle School coaches (stipend positions) - $200K *19 specialists (majority directly involved with education) $1.6M *1 administrator to oversee the Schools - $185K During 15 the plan is to restore up to 30 positions with many directly impacting the classroom(s) - $2.35M The District is looking to continue to expand Middle School activities - $500K 31

33 Technology improvements: Priority Updates 2014 and 2015 $14.7million *NOVAtime Time and Attendance system, increased efficiencies and created standard practices - $500K initial year, $200K thereafter *ECivis Grant Management Software, will enable better grant research and qualification capabilities $40K *Employee reimbursement web form to create quicker pay terms and automation for employees - $30K *Brynes Software for Des Moines Teacher Retirement System to enable further automation - $100K *PCard interface to drive efficiencies and enhance controls - $30K *Budget Transfer Webform to enable line item budgeting as desired - $10K *Dashboard enhancements to create a simpler access point for ERP users- $5K *Public Dashboard to enable parents, taxpayers, constituents to have easier access to student achievement data $5K *Records Digitization to free up office space and reduce paper usage - $200K *Fixed Asset module implementation in the ERP - $5K *Upgrade from Informix to Sequel for the ERP to enable greater utilization - $20K *Position Control web form for the ERP to streamline the staff allocation process - $30K *Journal Entry web form for the ERP to increase the control oversight - $10K 32

34 Technology improvements cont. Priority Updates 2014 and 2015 *New training structure with the ERP HR/Payroll Data team set up -$5K *Purchasing module modifications to reduce steps and time taken to place an order - $30K *Student Activities rollout with the ERP to increase control points and oversight as well as drive efficiencies - $15K *Redundant/Failover Pipe to the Internet - $100K *10 GB Backbone Project - $100K *System Center Configuration Manager Upgrade (Software Deployment and Network Management) - $22K * Infinite Campus Reimplementation (Online Assessments, Standard Reference Grading, Training) - $100K *Staff laptop replacement - $500K *Managed Print Solution Cost will grow if we move to a vendor as opposed to internal *Building Renovations (e.g. Jesse Taylor Education Center, Lincoln RAILS, Prospect, Edmunds) - $49.2M spent out of State Wide Penny funds in 13 for construction/renovations *Data Wiring for 5 th and 6 th floors at Walnut Street to increase system performance for more effective utilization - $250K 33

35 Technology improvements cont. Priority Updates 2014 and 2015 *Wireless Network Management to create great opportunities for accessibility throughout the District - $1M *School Dude enhancements to enable better tracking of work orders -$70K *Mobile Device Management to better track and provide access- $200K *Phone system upgrade to transition to Voice over IP - $2M *Interactive video projector for every K-5 classroom $2M *6 devices in every K-5 classroom $5M *Implementing the Achieve 3000 system for secondary literacy intervention and customized programs based on the students level - $120K per year *Implementing the Naviance system for counseling support for various students as well as targeted to At-Risk - $80K per year *Installation of approximately 700 Security Cameras $2.1M 34

36 Priority Updates 2014 and 2015 Communication: not including the $.5m in savings $2.2 million A concentrated effort has been put into place to do a better job of communicating out to the parents, taxpayers and other constituents over the course of the last year here are some examples of success: *Billboard advertising - $30K *Smartphone App redesign - $25K *TV station/video enhancements - $25K *Website enhancements - $10K *New Vehicle purchased to enable the communications staff to be mobile - $25K *Infinite Campus is being looked at as a possible communication tool HR is in the process of a transformation to provide a better communication medium for staff. The District s SharePoint site is being looked at for an overhaul. HR is now doing quarterly newsletter to enhance communication. 35

37 Communication cont. Priority Updates 2014 and 2015 The Benefits/Risk Management Department focused on new initiatives this year. Some examples include: Benefits/Risk Management conducted a dependent audit resulting in an estimated $500k savings - $56K Wellness biometric screenings have been completed for approximately 70% of employees. Wellness initiative continues with $200 annual incentive tied to health premium $1.5M total program cost Financial incentive added for individuals who do not take family medical coverage $558,000 36

38 Priority Updates 2014 and 2015 Communication cont. The Communication staff is relatively small (6 FTEs) and thus has focused on social media as the primary method of communication. A few quick data points: Website views: Unique Visitors: 863,679 Total Visits: 4,426,177 Total Page views: 9,318,044 Facebook presence: 81% increase in Facebook likes DMPS ranks #2 in the Council of Great City Schools for Facebook likes DMPS ranks #4 in the Council of Great City Schools for Twitter Followers DMPS Klout scores put the District in the top 10% of social media users Received Award of excellence two years in a row from the National School Public Relations Association (only school district to be a repeat recipient) **NOTE: All items are estimated / rounded 37

39 2015 Budget Presentation Questions? 38

40 ATTACHMENT PUBLIC HEARING April 1, 2014 Proposed Budget 2015 Thomas Harper, CFO

Budget Presentation. FY 2015 Budget Development. Thomas Harper, CFO

Budget Presentation. FY 2015 Budget Development. Thomas Harper, CFO Budget Presentation FY 2015 Budget Development Thomas Harper, CFO BUDGET TIMELINE Dates are Tentative Budget Timeline Dates are Tentative Date Day Time Group Activity October 24, 2013 November 5, 2013