SCHOOL DISTRICT OF LADYSMITH BUDGET HEARING & ANNUAL MEETING OCTOBER 18, 2017
State of District s Financial Health General Fund Balance sits at $2,054,672 on June 30, 2017. This is 19.90% of the budgeted Fund 10 Expenditures. 2017-18 budgeted expenditures are approximately -$386,046 less than the actual expenditures from 2016-17. District equalized value of property upon which it can levy a tax decreased 1.20% to $267,438,687. The 2017-18 budget was put together with the assumptions that the State funding would have a slight increase, and student enrollment would decrease.
State of District s Financial Health ACT 55 Recent changes as part of the Biennial State Budget Increases in Voucher Program. All new vouchers will come directly from the district that the student resides. No adjustments in the revenue limits per student. Homeschooled students may participate in extra-curricular sports and activities. This year, Open Enrollment Special Education costs will be capped at $12,207. Previously, most of our OE S.E. Students costs were billed to the home district in the $40 80,000 range. We will not receive Sparsity Aid that the Governor had in his original budget. This was removed by the legislators.
Future of District s Financial Health Economic and Demographic realities: Declining enrollment (WI Tax Payers Alliance predicts a greater than 20% decrease between now and 2040). Since 2009, our district has decreased in size by 250 students. This past year we reduced in size by 33. The Population Study completed by UW-Madison indicates we will lose approximately 50 students in the next 10 years, if trends hold. Currently property values decreased. Adds up to a shift from the state to local revenue sources. District will continue to closely examine current educational and operational practices, including the continuation of the evaluation of all of our facilities.
2017-18 School District of Ladysmith Budget
Where does district funding come from? How is funding determined? Basis for state aid formula: Property Values Enrollment Numbers In the state s eyes, high property values mean those tax payers can afford more. This transfers much of the burden on local taxpayers and the district receives less in state aid. The reality is that nearly 70% of families in the district qualify for free and reduced lunch, so there is a disparity between what the state says we can pay and what the local taxpayer can really afford.
2017-18 Budgeted Expenses (Fund 10) Total: 2016-17: 10,710,786 2017-18: 10,324,740 Decrease of: $386,046 or a 3.61% Reduction
Debt Service (Fund 38 & 39) 2016-17 $1,542,488 2017-18 $1,784,331 Proposal is to over levy in 2018 by $311,000 to lower tax impact in 2021 and 2022. As you will see shortly, the mill rate will still decrease.
Capital Projects Fund (Fund 46) The School District established this fund on June 23, 2016. The fund was established with $51,000. These funds, as well as any additions to Fund 46 need to remain untouched for 5 years. The transfer of money is considered an recordable expense, therefore showing that we spent out levied dollars. At the end of each fiscal year, the District Administrator will recommend an amount to transfer to Fund 46 based upon the final budget outcomes. In July 2017, the Board authorize the move of $307,304 from Fund 10 to Fund 46 to lower the State Aid impact.
Food Service (Fund 50) This fund must be self-sustaining or Fund 10 dollars transferred at the end of the fiscal year to bring it to a zero balance. This fund may carry a fund balance. Revenues $506,950 Expenditures $465,451 Fund Balance as of June 30, 2017 $270,869
Community Service (Fund 80) Revenue $104,000 Expense 82,325 Fund Balance on June 30, 2016 99,768
Proposed Property Tax Levy 2017-18 General Fund $1,492,561 Debt Service Fund 2,154,150 Community Service Fund 100,000 Total Levy $3,746,711
Mill Rate 2016-17 Mill Rate 14.0961 That translates to $1,409 per $100,000 house. Decrease of 0.86% due to: Decrease in property values Increase in state aid Increase in previously scheduled debt repayment Over levy to help lower tax impact in 2021 and 2022 for Final Debt payments from 2003 Referendum.
Property Valuation Property Values 280,000,000 275,000,000 270,000,000 265,000,000 275,392,007 278,288,518 270,709,638 267438687 260,000,000 255,000,000 250,000,000 245,000,000 240,000,000 250,254,896 251,985,555 235,000,000 2012 2013 2014 2015 2016 2017 Property Values
Tax Levy Levy 3,900,000 3,800,000 3,700,000 3,600,000 3,641,023 3,773,419 3,810,187 3,746,711 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 3,242,396 3,205,205 2,900,000 2012 2013 2014 2015 2016 2017 Levy
Mill Rate Mill Rate 14.2 14 13.8 13.6 13.4 13.2 13 12.8 12.6 12.4 12.2 12 14.131 14.009 13.559 13.221 12.956 12.826 2012 2013 2014 2015 2016 2017 Mill Rate
Membership Enrollment 820 818 820 800 780 760 768 784 758 740 720 725 700 680 660 2012 2013 2014 2015 2016 2017 Enrollment
Budget Facts Fund 10 Expenditures 16-17: 10,712,781 17-18: 10,324,740 Reduction: 386,046 or -3.61% Equalized State Aid 16-17: 6,271,767 17-18: 6,422,168 Increase: 170,401 or 2.72% Tax Levy All 16-17: 3,810,187 17-18: 3,746,561 Decrease: 71,626 or 1.88% Equalized Value 16-17: 270,709,638 17-18: 267,438,687 Decrease: 3,270,951 or 1.20% Mill Rate 16-17: 14.131 17-18: 14.009 Decrease: 0.122 or 0.86% Student Count 16-17: 758 17-18: 725 Decrease: 33 Tax Levy Fund 10 16-17: 2,126,205 17-18: 1,492,561 Decrease: 633,644 or 29.80% Total Revenue Limit 16-17: 8,339,449 17-18: 8,378,856 Increase: 39,407 or.472% Revenue Limit Up: 39,407 State Aid Up: 170,401 Net affect on levy: -71,626
Summary This budget has a known Fund 10 deficit of $300,000. The Energy Exemption and Capital Improvement Project to move the Elementary to the former Middle School Building is underway. The main portion of the contract will be sent out to bid mid to late November, with a majority of the construction taking place in January through May.
Questions?