Long Range Financial Plan

Transcription

1 Long Range Financial Plan 2018

2 Table of Contents SUMMARY... 2 BUDGETING PHILOSOPHY AND CURRENT BUDGET... 3 FORECASTING ASSUMPTIONS... 4 HISTORICAL & PROJECTED DATA... 5 Revenues... 5 Local Revenue... 5 State Revenue... 6 Federal Revenue... 7 Revenue Summary... 7 Expenditures... 8 Salary & Benefits:... 8 Purchased Professional & Technical Services... 8 Purchased Property Services... 8 Other Purchased Services... 8 Supplies & Materials... 8 Equipment... 8 Other Expenditures/Fund Transfers... 8 Expenditure Summary... 9 Fund Balance ITEMS FOR FUTURE CONSIDERATION FINAL THOUGHTS APPENDIX General Fund Mill Levy Projections ADM and State Aid Projections Long-Term Debt - Principal Long-Term Debt-Interest Projections Other Documents/Information Fargo Public Schools LONG RANGE FINANCIAL PLAN 1

3 SUMMARY At the August 11, 2015 School Board meeting, the Board unanimously approved the Fargo Public Schools Long Range Financial Plan (LRFinP). As part of the process of developing a forecast, an underlying set of assumptions must be developed and applied to the information as each year is projected. These assumptions will not all hold true for the entire term of the forecast. The LRFinP will be reviewed and adjusted annually in January, or at such times as new information changes the assumption. As such, this document has been updated to include actual revenue and expenditures for the fiscal year, revised budget information for the fiscal year and updated projections. The LRFinP contains historical information and financial projections. The review includes a progress report on the Items for Future Consideration and additional considerations necessary as we proceed with planning. The LRFinP carries financial projections through Projections are based on information known to the district at the time of review, which includes property tax revenue and anticipated minimal increases in state revenue through the foundation aid formula due to current financial conditions of the state. Expense projections are based on scenarios for salary adjustments of 2% and 3% annually, with all other expenditures remaining relatively flat. The district is currently entering a one-year negotiated contract cycle with certified staff. The result of this forecasting activity sees the district s revenue growth over the next 5 years to be approximately 1.1%, while expenditure growth over the same period ranges from 1.3% to 3.0%. The results project a deficit general fund budget in the future. Significant changes will need to be reviewed to accommodate for the sound fiscal planning of the district. Fargo Public Schools utilizes a balanced budgeting philosophy with contributions in budget development from various levels throughout the district. The district has established a financial position that is fiscally sound, evidenced by the maintenance of our fund balance and a consistent Aa3 bond rating through Moody s Rating Agency. As we prepare for next year and beyond, appropriate planning must ensure the maintenance of this financial position as we strive to meet the needs of the district while carrying out the Long Range Facilities Plan and the Strategic Plan. Fargo Public Schools LONG RANGE FINANCIAL PLAN 2

4 BUDGETING PHILOSOPHY AND CURRENT BUDGET Fargo Public Schools practices a balanced budgeting philosophy. In doing so, administration strives to present the Board of Education with a balanced budget (revenues = expenses) consistent with policy EL-7: Budgeting and Financial Planning. In fiscal , the Board approved a general fund deficit of approximately $338,000, due in part to the final negotiated agreement with certified staff. The District continues to improve on the input process used to gather budgetary information with a focus of alignment with the Strategic Plan. In developing annual revenue projections, the District utilizes many resources including: the state funding formula, the Department of Public Instruction (DPI), the City of Fargo Assessment Office annual report for property valuation determination, and the Cass County Auditor s office for property tax valuation of property outside the city of Fargo. Salary expenses are projected at 2% and 3% per annum and will be adjusted as final negotiated agreements are completed. Employee benefits are estimated based on projected salaries and anticipated insurance increases, taking into consideration the need to maintain a positive self-insurance fund balance to support ongoing claims. During the budgeting process, Fargo Public Schools realigned approximately $1 million to provide increased behavioral supports to students and safety to staff members. This was done through collaboration between departments, attrition and restructuring of positions. Below is the summarized General Fund budget: 2018 Revised Budget Local Property Tax $ 47,034,946 Local Revenue 2,392,234 State Revenue 102,118,484 Federal Revenue 9,347,559 Fund Transfers 301,750 Total Revenues 161,194,973 Salary Expense 96,840,460 Employee Benefits Expense 31,621,538 Purchased Professional & Technical Services 3,770,757 Purchased Property Services 3,693,403 Other Purchased Services 8,006,120 Supplies & Materials 7,353,091 Equipment 2,515,007 Other Expenditures 542,186 Fund Transfers 7,191,151 Total Expenditures 161,533,713 Projected Revenues Under Expenditures $ (338,740) Fargo Public Schools LONG RANGE FINANCIAL PLAN 3

5 FORECASTING ASSUMPTIONS In the process of creating a LRFinP, assumptions are made for purposes of forecasting. These assumptions reflect on historical trends and the standards that guide the district philosophically in obtaining our mission of Educating and Empowering all Students to Succeed. This LRFinP also takes into account the need to fulfill the Long Range Facilities Plan and the Strategic Plan for the District. The LRFinP provides a five-year forecast for the general fund, beginning with the fiscal year budget and forecasting revenue and expenditures through Below are assumptions that have been used for forecasting: Property tax revenues increase at 4.5% per year State per Pupil Aid will decrease.5 % per year over the five-year projection. The per student payment rate will remain constant, however, there will be a higher property tax offset State and Federal grant programs will have a slight.5% decrease per year Maintain current staffing levels, specifically related to maintenance of class size o Preference is for class size of 21 or fewer in primary, 22 or fewer in intermediate, and 26 or fewer in secondary core academic classes Staff salary increase scenarios include 2% and 3% each year. Steps remain frozen, lane changes are honored Employee health insurance will increase 5% per year and dental 3% per year, in an effort to provide adequate funding for the District s self-insurance fund Scaled back implementation of the Long Range Facilities Plan with modification to the 10-year operational maintenance line, to be held at $2 million per year Contracted bussing includes an annual inflator estimated to be 3% o Preferences for student travel remain unchanged at less than 1 mile to or from elementary school for a maximum of 30 minutes on a bus; less than 1.5 miles to or from secondary school or a maximum of 30 minutes on a bus Utilities and property insurance will increase at a rate of 2% per year Supplies will be held to $2.75 million per year Scaled back implementation of the Technology Plan, to equipment purchases of $1 million per year Equipment purchases will be reduced to $1 million in 2019 and held flat through 2023 The debt transfer payment for the 2017 Lease Revenue Refunding Bond remains in the general fund o The payment decreases by approximately $2.5 million in fiscal based on the existing amortization schedule, thus freeing up general fund dollars at that time Implementation of the Strategic Plan, specifically the financial implications of ensuring efforts to recruit and retain the highest qualified employees, which means maintaining competitive salary and benefit packages Fargo Public Schools LONG RANGE FINANCIAL PLAN 4

6 HISTORICAL & PROJECTED DATA As we plan for the future, a review of historical trends can help identify issues that need to be addressed or considered in developing an appropriate plan. Planning can and should consider these historical trends and allow for the development of a long-range plan that keeps the district financially sound. This section provides a brief history of revenue as well as a historical perspective of operating expense growth. Revenues K-12 revenue is derived from three major sources: local, state and federal funding. Local Revenue Local revenue consists of property taxes, tuition assessed to other districts for educating their students, interest income and other sources. Property Tax: Through July 1, 2001, Fargo Public Schools was an unlimited levy district, meaning the Board of Education had unlimited authority to levy mills for the purpose of operating the school district. By majority approval of an election in 2001, Fargo citizens imposed a cap on Fargo Public Schools levy authority of mills, absent state required levy reductions. The state cap at this time was 185 mills. In 2009, the North Dakota Legislature passed a Mill Levy Reduction Grant Program that allowed districts to reduce its current mill levy by 75 mills, which was funded by the state, thus providing property tax relief to local tax payers. During the 2009 session, the legislature also required any school district which had levy authority above the 185 mills to secure voter approval of an excess levy by December 31, In the 2013 legislative session, the state called for an additional 50 mill reduction at the local level, setting the state cap at 60 mills with some flexibility needing school board action to increase an additional 10 mills. At that time, the state also eliminated the Mill Levy Reduction Grant Program and significantly changed the funding formula. In addition, the Savings & Loan (S&L) tax was restructured, eliminating local school districts from receiving this tax, which decreased district revenue by $1.9 million. In fiscal 2017, Fargo Public Schools secured positive voter approval of an excess mill levy, capped at 127 mills, which will remain in effect through Property tax projections are estimated to increase 4.5% annually. Tuition: The district continues to attract students from other districts, primarily in our special education programs. Tuition is also earned from summer driver training, summer enrichment programs, and career and technical education coops. There is no real trend in this data as tuition can vary greatly from one year to the next, but an estimate going forward in the $500,000 range should be a reasonable. Interest Income: Interest earnings have been relatively low in the past years. The district invests funds in investments allowed under law. The majority of funds are currently invested in certificates of deposit and money market accounts. Slight upticks are beginning to be seen in interest rates. Projections include a 2% increase per year. Other Revenues: Minor sources of revenues are derived from facility rentals, fund transfers from nutrition services, printing, Medicaid, services provided to others and miscellaneous charges such as transcripts, student parking fees and device insurance. These sources are projected to remain flat. Fargo Public Schools LONG RANGE FINANCIAL PLAN 5

7 State Revenue Foundation Aid: The primary state revenue source is derived through the foundation aid formula. The three components to the formula are the per pupil payment, the weighting factors and the mill levy deduct. The State of North Dakota once strived to provide 70% of education funding statewide through the foundation aid formula. In recent years, the state has significantly increased the contribution of state funds to education, at one point striving for 80% statewide funding. During the 2013 Legislative Session, the state substantially changed the funding formula to account for a much larger portion of education funding and transitioning to a truly student driven model. During , K-12 education relied on a transfer from the Foundation Aid Stabilization Fund to avoid revenue reductions due to the financial condition of the State of North Dakota. As the 2017 legislative session unfolded, the per pupil payment rate of $9,646 was fortunate to remain flat, allowing for increases in state revenue for enrollment growth only. In fiscal year , the state funded 65.2% of the general fund operating budget for Fargo Public Schools, compared with 53.1% in The mill levy deduct is the component of the formula that is intended to address equity within the state. The logic in the deduct is that the greater a district s ability to generate revenue locally (i.e. the greater the local participation in funding education through property taxes), results in more state resources remaining available to fund education in the poorer districts. The deduct currently subtracts the value of the first 60 mills in property tax from each district. Since each district s taxable valuation is different, their contribution to the deduct is different. Fargo Public Schools is currently experiencing a negative effect through the mill levy deduct. As property valuations increase, the value of the deduct increases. In times of flat per pupil funding, the district s net effective per pupil payment amount decreases, resulting in a loss of state aid each year due to this formula. The weighting factor is used to adjust each district s payment for the size of the district, the grade level of the student, and the needs of the student. For example, special education and English learner students receive a higher weighting factor than regular education students. Transportation Aid is also included in the funding formula, with reimbursement rates varying from $.30/ride to $1.11/mile, resulting in approximately $1 million of aid. For projection purposes, this revenue will remain flat. Career and Tech Ed Reimbursement and Joint Agreements: Career and Tech Ed reimbursement varies on the type of expenditure and program, with an average of 30%. Fargo Public Schools currently has an agreement with the Cass County Virtual CTE Center, which includes West Fargo, Northern Cass and Casselton school districts. State revenue is received indirectly through the local vocational education center. Other State Aid: The district receives other state aid, typically restricted for special programs. Projections include a slight decrease over the periods included. Fargo Public Schools LONG RANGE FINANCIAL PLAN 6

8 Federal Revenue Federal revenue, received by the district for specific programs, is generally a restricted revenue source. Federal funds remain relatively flat year-to-year. The high point of federal funds was 12.98% of general fund revenues in which included American Recovery and Reinvestment Act (ARRA) and Education Stabilization funds. The low point was 4.93% in fiscal year , due in part to the end of ARRA and federal sequestration. Federal programs are anticipated to have a slight decrease over the projection period. Revenue Summary Given the information described earlier and the current state and federal decisions that are in place, the following changes in major revenue sources are projected as follows: BUDGET Projected Local Property Tax 47,034,946 49,509,000 51,643,000 53,874,000 56,205,000 58,641,000 Local Revenue 2,693,984 2,497,000 2,505,000 2,513,000 2,521,000 2,529,000 State Revenue 102,118, ,685, ,180, ,731, ,237,000 99,628,000 Federal Revenue 9,347,559 9,302,000 9,257,000 9,212,000 9,167,000 9,122,000 Total Revenues 161,194, ,993, ,585, ,330, ,130, ,920,000 The graph below illustrates the trend of total general fund revenues by source over the past five years and projected: 120,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, Budget 2019 Projected--> Property Tax Other Sources State Federal Fargo Public Schools LONG RANGE FINANCIAL PLAN 7

9 Expenditures K-12 expenditures can be summarized into the following major categories: salary & benefits, purchased professional & technical services, purchased property services, other purchased services, supplies & materials, equipment and other expenditures/fund transfers. Salary & Benefits: The major component of expenditures remains human resources, as salary and benefits comprise 79.5% of total general fund expenses. Personnel costs have increased from $104,980,000 in to $124,320,000 in , mostly in the areas of special education, para support and English learner education. 1,110 certified employees were under contract in , up from 1,067 in , or 4%. Average daily membership increased by during the same period. In addition, facilities were added or expanded upon, including Ed Clapp Elementary, Eagles Elementary and a district-wide Operations Center. Health care costs continue to rise. In the district began offering a high deductible health plan and health savings account option to staff in an effort to begin to curb the increased costs of providing health insurance. Increases in salary and benefits will comprise the majority of expenditures in the future unless changes in staffing or the cost sharing of benefits between the employer and employee change. Projections include 2% and 3% annual increases for staff salaries, 5% increase in health insurance and 3% increase for dental insurance. Corresponding benefits based on salary also project 2% and 3% increases. Purchased Professional & Technical Services refers to services provided to the district by outside vendors and includes contracted instruction, audit and legal, nursing services and school resource officers. Educational license agreements make up the majority of this category. Projections include slight increases in these areas due to the anticipated cost increase for staff contracted. Purchased Property Services include equipment repair, rental and maintenance contracts, water, sewer and garbage services as well as contracted construction services related to the district s Long Range Facility Plan (LRFP). The LRFP implementation has been scaled back to $2 million annually for projection purposes. Other Purchased Services: The main components in other purchased services are the district s transportation contract and tuition paid to other districts. The transportation contract includes an automatic yearly inflator, projected to be 3% in this analysis. Tuition is anticipated to increase 1%, due to increased costs realized by the educating districts. Supplies & Materials are comprised of student supported supplies, textbooks and workbooks as well as electricity costs of the district. Minimal increases are anticipated in these lines. Equipment: Equipment includes district-wide needs as well as technology equipment to support the district s initiatives related to the Technology Plan. General equipment needs have been scaled back in the attached projections and will be held flat. Other Expenditures/Fund Transfers: Fund transfers include principal and interest payments on debt funded by the general fund and the transfer to the student activities fund. In fiscal , the 2017 Lease Revenue Refunding Bond will have a substantial decrease in annual debt payment, thus freeing up general fund dollars for other uses. Fargo Public Schools LONG RANGE FINANCIAL PLAN 8

10 Debt Structure The District continues to respond to changes in the market and seeks debt refunding options when available. In the past three fiscal years, the District has refunded several bond issues and maintained debt structure that fits within the current revenue collected in both the Building Fund and Special Levy Fund. Further, Fargo Public Schools has maintained a favorable bond rating through the years. (See Appendix) Expenditure Summary The following table summarizes the major categories of expenditures along with the projected financial data with 2% and 3% wage increases, respectively: Expenditures with 2% per Annum Wage Increase BUDGET Projected Salary & Benefits $ 128,461,998 $ 131,594,000 $ 134,805,000 $ 138,099,000 $ 141,480,000 $ 144,951,000 Purch Prof & Tech Services 3,770,757 3,785,000 3,800,000 3,815,000 3,830,000 3,845,000 Purch Property Services 3,693,403 3,509,000 3,519,000 3,529,000 3,539,000 3,549,000 Other Purchased Services 8,006,120 8,191,000 8,380,000 8,573,000 8,771,000 8,973,000 Supplies & Materials 7,353,091 7,370,000 7,437,000 7,505,000 7,574,000 7,644,000 Equipment 2,515,007 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Other Exp/Fund Transfers 7,733,337 7,945,000 8,176,000 5,535,000 5,621,000 5,708,000 Total Expenditures $ 161,533,713 $ 164,394,000 $ 168,117,000 $ 169,056,000 $ 172,815,000 $ 176,670,000 Expenditures with 3% per Annum Wage Increase BUDGET Projected Salary & Benefits $ 128,461,998 $ 132,732,000 $ 137,144,000 $ 141,699,000 $ 146,404,000 $ 151,265,000 Purch Prof & Tech Services 3,770,757 3,785,000 3,800,000 3,815,000 3,830,000 3,845,000 Purch Property Services 3,693,403 3,509,000 3,519,000 3,529,000 3,539,000 3,549,000 Other Purchased Services 8,006,120 8,191,000 8,380,000 8,573,000 8,771,000 8,973,000 Supplies & Materials 7,353,091 7,370,000 7,437,000 7,505,000 7,574,000 7,644,000 Equipment 2,515,007 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Other Exp/Fund Transfers 7,733,337 7,987,000 8,262,000 5,667,000 5,801,000 5,939,000 Total Expenditures $ 161,533,713 $ 165,574,000 $ 170,542,000 $ 172,788,000 $ 177,919,000 $ 183,215,000 Difference in Expenditures $ - $ 1,180,000 $ 2,425,000 $ 3,732,000 $ 5,104,000 $ 6,545,000 Fargo Public Schools LONG RANGE FINANCIAL PLAN 9

11 The graph below shows the relationship of total revenues to total expenses during the historical period of with the projected data (comparing 2% and 3% projected wage increases) through 2023: 200,000, ,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, Budget 2019 Projected--> Total Revenues Expenditures 2% Wages Expenditures 3% Wages Fargo Public Schools LONG RANGE FINANCIAL PLAN 10

12 Fund Balance The Board of Education established a 10% fund balance goal several years ago to help with financial stability. The goal was later modified to 15% of general fund expenditures. In 2002, the district met this fund balance goal and has continued to maintain it above the 15% minimum. Since 2013, the ending fund balance of the district has ranged from $26.3 million (19.6%) to its current level of $31.9 million (20.4%). The graph below displays fund balance as a percent of general fund expenditures during , along with the anticipated change in fund balance based on projected wage increases of 2% and 3%, respectively: 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 2% Wage Increase 3% Wage Increase Fargo Public Schools LONG RANGE FINANCIAL PLAN 11

13 ITEMS FOR FUTURE CONSIDERATION The district has little ability to increase revenue sources, thus, decisions regarding expenditures will be required in order to maintain fiscal soundness. In future years, the following may need to be considered (listed in no particular order): Additional Taxation: In accordance with state statute, the district could levy 12 mills for miscellaneous purposes and expenses, to be held in a separate fund, the proceeds of which cannot be transferred into any other fund. In addition, 3 mills could be levied for a special reserve fund, whereby if collections from taxes levied are insufficient to meet teacher salaries, heat, light and fuel, a majority of the school board may elect to utilize 15% of the funds in a given year. Salary and Benefits Expense: Staff salaries and employee benefits will continue to comprise 80% of the overall operational expense of the District. This is not uncommon among organizations. In order to reduce expenditures in this area: o Future compensation packages would need to be held flat or increase at a low pace. This could affect the district s ability to hire and retrain quality teaching and support staff considering the proximity of West Fargo and Moorhead public schools. o Reduce the number of total staff within the district. This could be achieved through an analysis of staffing to right size, through attrition, restructuring or increasing class size, particularly at the elementary level. The preference for class size is 21 or fewer students in primary, 22 or fewer students in intermediate, and 26 or fewer students in secondary core academic classes. o Review the Paid Leave System (PLS) payout policy, consider a cap on the total accumulation of time and/or reducing the 50% buy back obligation. o Most benefit costs are driven directly by salary cost, thus, flat or minimal wage increases would keep long-term disability, retirement, social security and workers compensation benefits in line. o Health and dental insurance will require careful monitoring. The District s self-funded insurance plans require appropriate rate adjustments to ensure adequate funding which could impose higher premium increases, resulting in higher costs to the general fund. Adjusting cost-sharing, altering plan benefits or changing to only a high deductible plan may be necessary to keep costs in control. Transportation: In fiscal year , Fargo Public Schools budgeted $5.4 million for student transportation and anticipates receiving $1 million from the state as an offset to this expense. In future years, the district may need to consider the sustainability of this practice. The preference is for elementary students to travel less than 1 mile to or from school or a maximum of minutes on a bus and for secondary students to travel less than 1 ½ miles to or from school or a maximum of minutes on a bus. Options to reduce costs may include: o Reducing regular routes o Increasing walk-out areas o Charging patrons for transportation costs (of which the district suspended in ) o Eliminating transportation not required by law Fargo Public Schools LONG RANGE FINANCIAL PLAN 12

14 Staff Travel: The District s budget for staff travel is approximately $385,000, which includes both in-district and out of district travel, some of which is listed in the negotiated agreement. Consideration could be given to reducing the travel allowed and/or reimbursed. Construction Services: With the decrease in funding necessary to implement the LRFP, consideration will need to be given to the long-term effect of delaying maintenance and replacement of facilities and equipment. Increased Student Needs: Planning for a Level IV facility and staff to support students with increased behavioral needs by providing an environment conducive for learning. Energy Efficiency: Although the upfront cost to exchange district-wide lighting to more efficient methods would be costly, the return on investment may make this more appealing with the realization of long-term savings. In addition, potential efficiencies in heating, cooling and plumbing could be analyzed for cost-effectiveness. Debt Transfer: The current general fund debt transfer could be paid in part of full through the building fund, freeing up additional dollars in 2019 and FINAL THOUGHTS In summary, the financial condition of Fargo Public Schools is currently very strong. Ongoing efforts by administration to comply with policy EL-7: Budgeting and Financial Planning have historically provided balanced budgeting each year and maintained appropriate fund balances while meeting the strategic vision and needs of the district. Guiding the District into the future will be the Strategic Plan, Long Range Facilities Plan, and Technology Plan. These will assist us with a roadmap to the future, setting expectations and guiding decision making. Certified staff contract negotiations will play a vital role in the future of the district, setting the stage for administration and the Board of Education to provide sustainable financial modeling in the future based on agreed upon compensation. Enrollment is growing approximately 100 students/year. Property tax values continue to increase, although at a slower pace than in the past. The current condition of the State of North Dakota and funding of K-12 education looms as a major hurdle working into the future. There will need to be continued efforts to create operational efficiencies in providing the quality education that has become the benchmark of Fargo Public Schools. This is an exciting time in the Fargo School District. Our educational practices continue to develop strong programs for our students that will better prepare them for their future. Our future, like our past, will continue to present challenges. To Achieve Excellence by Educating and Empowering All Students to Succeed, we must be prepared for these challenges. By looking into the future financially, we can identify these challenges and develop a plan for meeting them that will help ensure the financial security the district needs to provide the resources required to support the quality education our stakeholders have come to expect. Fargo Public Schools LONG RANGE FINANCIAL PLAN 13

15 APPENDIX Fargo Public Schools LONG RANGE FINANCIAL PLAN 14

16 General Fund Mill Levy Projections Property Tax Mill Levy Projections FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Estimated % Increase in Valuation 6.81% 5.50% 4.50% 4.50% 4.50% 4.50% 4.50% Current Mills Levied Current Value of one mill Current General Fund Dollars Levied* $ 44,479,103 $ 47,330,293 $ 49,933,459 $ 52,180,465 $ 54,528,586 $ 56,982,372 $ 59,546,579 Estimated value of valuation increase $ 350,229 $ 373,326 $ 393,859 $ 411,583 $ 430,104 $ 449,459 $ 469,684 Mills Levied Reduction in Mills Levied (12.00) (0.22) *Frozen dollar value $ 44,963,779 $ 47,436,786 $ 49,571,442 $ 51,802,157 $ 54,133,254 $ 56,569,250

17 ADM and State Aid Projections Actual Estimated Actual ADM for Payment Purposes 10, , , , , , , , , , , Weighting Factors 1, , , , , , , , , , , Total ADM 11, , , , , , , , , , , ADM Projected Increase 0.50% 0.50% 0.50% 0.50% Per Pupil Payment Rate $ 3,980 $ 8,810 $ 9,092 $ 9,365 $ 9,646 $ 9,646 $ 9,646 $ 9,646 $ 9,646 $ 9,646 $ 9,646 Adjusted State Per Pupil Aid Funding* $ 4,049 $ 7,334 $ 7,583 $ 7,759 $ 7,934 $ 7,825 $ 7,713 $ 7,636 $ 7,563 $ 7,488 $ 7,408 Per Pupil Payment Rate Increase 1.79% % 3.20% 3.00% 3.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Adjusted Payment Rate Increase 3.56% 81.13% 3.39% 2.32% 2.26% -1.37% -1.43% -1.00% -0.95% -1.00% -1.06% Estimated State Aid $ 48,377,250 $ 89,172,097 $ 92,515,602 $ 95,158,409 $ 99,472,027 $ 99,285,466 $ 98,616,211 $ 98,115,019 $ 97,669,153 $ 97,178,435 $ 96,572,471 Less: REA Payment (206,226) (216,746) (218,289) (219,736) (220,853) (221,957) (223,067) (224,183) Final Estimated State Aid $ 94,952,183 $ 99,255,282 $ 99,067,177 $ 98,396,475 $ 97,894,165 $ 97,447,196 $ 96,955,368 $ 96,348,289 Total Est Aid $ 114,849,363 $ 120,929,683 $ 122,383,721 $ 123,324,785 $ 123,941,409 $ 124,561,116 $ 125,183,922 $ 125,741,590 Local Revenue Offset Tuition $ 189,447 $ 664,482 $ 391,634 $ 386,250 $ 386,250 $ 386,250 $ 386,250 $ 386,250 Electric/Trans Tax 54, ,512 48,563 48,750 48,750 48,750 48,750 48,750 Mobile Home/In-Lieu 1,005, ,005, , ,000 1,054,000 1,054,000 1,054,000 1,054,000 Telecomm 658, , , , , , , ,000 $ 1,907,831 $ 2,382,866 $ 2,093,955 $ 2,057,000 $ 2,147,000 $ 2,147,000 $ 2,147,000 $ 2,147,000 Property Tax Offset Value $ 288,468,136 $ 317,913,169 $ 350,071,676 $ 374,082,000 $ 394,656,510 $ 412,416,053 $ 430,974,775 $ 450,368,640 Mills $ 17,308,088 $ 19,074,790 $ 21,004,301 $ 22,444,920 $ 23,679,391 $ 24,744,963 $ 25,858,487 $ 27,022,118 $ 95,158,409 $ 99,472,027 $ 99,285,466 $ 98,822,865 $ 98,115,019 $ 97,669,153 $ 97,178,435 $ 96,572,471

18 Long-Term Debt - Principal Principal Due Principal Due Principal Due Principal Due Principal Due Principal Due Issue General Obligation Bonds FUND 2012 Limited Tax Bond m 30 2,470,000 2,605,000 2,735,000 2,855,000 2,965,000 1,265, Limited Tax Bonds m , ,000 6,485, , , , Limited Tax Rfdg Bond (Rfdg 07 Tax Bond)(9.835M) (B) Limited Tax Rfdg Bond (Rfdg 08 Tax Bond) (C) State Const Rfdg Bond (Partial Rfdg 14 Tax Bond) , , , , , , (A)Limited Tax Bond (9.160M) , , , , , , (B) Limited Tax Rfdg Bond (Rfdg 08 Tax Bond) 30 1,400,000 1,380,000 1,370,000 1,370,000 1,375,000 1,395,000 Total General Obligation Bonds 4,697,969 4,825,749 11,238,556 5,091,392 5,214,256 3,547,148 Remaining Principal Balance 77,289,322 72,463,574 61,225,018 56,133,626 50,919,370 47,372,222 Building Authority Bonds 2017 Lease Revenue Refunding Bonds (09 rfdg) 10 2,245,000 2,580,000 2,855, , , ,000 Total Building Authority Bonds 2,245,000 2,580,000 2,855, , , ,000 Remaining Principal Balance 7,105,000 4,525,000 1,670,000 1,400,000 1,125, ,000 Special Assessments Payable 31 34,370 34,370 34,370 34,370 34,370 34,370 Remaining Principal Balance 378, , , , , ,221 TOTAL PRINCIPAL PER YEAR 6,977,339 7,440,119 14,127,926 5,395,762 5,523,626 3,861,518 TOTAL SCHOOL DISTRICT DEBT 91,187,395 83,747,276 69,619,349 64,223,587 58,699,962 54,838,443

19 Long-Term Debt-Interest Int Payable Int Payable Int Payable Int Payable Int Payable Int Payable Issue GENERAL OBLIGATION BONDS FUND 2012 Limited Tax Bond m , , , ,863 87,763 28, Limited Tax Bonds m , , , , , , Limited Tax Rfdg Bond (Rfdg 07 Tax Bond)(9.835M) , , , , , , (B) Limited Tax Rfdg Bond (Rfdg 08 Tax Bond) , , , , , , (C) State Const Rfdg Bond (Partial Rfdg 14 Tax Bond) 30 54,523 51,743 48,936 46,100 43,236 40, (A)Limited Tax Bond (9.160M) , , , , , , (B) Limited Tax Rfdg Bond (Rfdg 08 Tax Bond) , , , , , ,875 Total General Obligation Bond Interest 2,630,354 2,493,574 2,236,148 1,976,144 1,831,905 1,684,662 Remaining Interest Balance 18,457,612 15,964,037 13,727,889 11,751,745 9,919,841 8,235,178 BUILDING AUTHORITY BONDS 2017 Lease Revenue Refunding Bonds (09 rfdg) , , ,200 33, ,350 17,100 Total Building Authority Bond Interest 505, , ,200 33,450 25,350 17,100 Remaining Interest Balance 511, ,644 30,444 (3,006) (28,356) (45,456) Special Assessments Payable 31 24,747 22,684 20,622 18,560 16,498 14,436 Remaining Interest Balance 136, ,424 92,802 74,242 57,744 43,309 Total School District Interest Debt Per Year 3,160,679 2,821,459 2,432,970 2,028,154 1,873,753 1,716,198 Total School District Interest Debt 19,105,564 16,284,105 13,851,135 11,822,981 9,949,229 8,233,031

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28 Other Documents/Information 2017 Audit Report 2017 Comprehensive Annual Financial Report 2018 Operating Budget 2017 Standard of Effort Report 2017 Annual Report Enrollment Data Organizational Chart