Annual Meeting

1 FOX POINT-BAYSIDE SCHOOL DISTRICT Annual Meeting Budget Hearing September 21,2015 Board of Education Mission Statement Our mission is to prepare all children to flourish as compassionate, engaged, and productive citizens well-prepared to make meaningful contributions to our world. David Smulyan, President Michael Weidner, Vice President Libby Wick, Clerk Max Dickman, Treasurer Dann Jacobson, Member District Administration Superintendent Dr. Vance Dalzin Director of Business Services Janice DeMeuse Director of Teaching, Learning and Special Programs Jennifer Ganske Vision Statement Our vision is to inspire children through innovative and academically rigorous learning experiences that meet the unique talents, interests and needs of every child. District Profile The Fox Point-Bayside School District serves approximately 950 students in four-year-old kindergarten through eighth grade in its two schools. About 550 students attend Stormonth Elementary School, 7301 N Longacre Road, Fox Point, and approximately 400 students attend Bayside Middle School, 601 Ellsworth Lane, Bayside. The Fox Point-Bayside School District has a long history of academic excellence with an emphasis on instilling positive behaviors and attitudes as part of a strong foundational education. Our schools work to give each student a Valuable Education, An Education with Values. Our mission statement reflects the important tenets upon which we have built our program. 1

2 FOX POINT-BAYSIDE SCHOOL DISTRICT Message from the District Administrator Inside this booklet: -Message from the Superintendent 2 Meeting Agenda School District Budget & Accounting General & Special Project Funds 10 27 3 4 5-6 Debt Service 7 Other Funds, Total Expenditures 8-9 Tax Levy Explanation 10-11 Fund 73 12 2014 Annual Meeting Minutes 13-15 2

3 Fox Point-Bayside School District Budget Hearing & Annual Meeting Monday, September 21, 2015 7:00 p.m. Stormonth School Cafeteria Agenda Call to Order David Smulyan, School Board President Introductions of the School Board and Administrative Team David Smulyan, School Board President Board President Comments David Smulyan, School Board President State of the District Dr. Vance Dalzin, Superintendent Election of the Annual Meeting Chairperson Approval of the Budget Hearing and Annual Meeting Minutes Presentation of the Preliminary Proposed Budget Janice DeMeuse, Director of Business Services Public Hearing on the Proposed Budget Adoption of Proposed Resolutions: Resolution A: Report on Fund 73, District Investments Resolution B: School District Budget and Levy Resolution C: Set the Date for the Next Annual Meeting Adjourn 3

4 SCHOOL DISTRICT BUDGET AND ACCOUNTING Budget Reporting Accounts used in school district budgeting and financial reporting are designated by the Department of Public Instruction. A uniform accounting system is important for the facilitation of reporting, auditing, data processing, inter-district comparisons, and financial accounting for cooperative programs. A complete list of allowable account codes and account code explanations are available for review on the website at: http://dpi.state.wi.us/sfs/ pdf/wufar_final.pdf. Fund Accounting Financial administration requires that each transaction be identified for administrative and accounting purposes. The first identification is by fund which is an independent fiscal and accounting entity, requiring its own set of books, in accordance with special regulations, restrictions, and limitations that earmark each fund for a specific activity or for attaining certain objectives. Each fund must be so accounted for that the identity of its resources and obligations and its revenues and expenditures is continually maintained. All funds used by Wisconsin school districts must be classified into one of nine fund types. The major fund types are the General Fund, Special Projects Fund, Debt Service Fund, Capital Projects Fund, Food Service Fund, Agency (Pupil Activity) Fund, Fiduciary Fund, Community Service Fund, and Package and Cooperative Program Fund. Basis of Accounting The basis of accounting refers to the point in time when revenues, expenditures or expenses and the related assets and liabilities are recognized in the accounts and reported in the financial statements. In other words, the basis of accounting determines the timing with which the accounting system recognizes transactions. Governmental funds, expendable trust funds, and agency funds use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available (susceptible to accrual). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. State general and categorical aids, federal impact aid, and other entitlements are recognized as revenue at the time for receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven programs currently reimbursable are recognized as revenue when the qualifying expenditures have been incurred. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Employee services and payroll-related costs (employee health, life, disability insurance, FICA, Medicare, Wisconsin Retirement System contributions, annuities) other than compensated absences, termination, and other post-employment benefits are recognized in the fiscal period when incurred. The following tables provide actual audited results for and school years and proposed budget for. Detail of the budget can be viewed at the District Administrative Center located in Stormonth School by contacting the Director of Business Services. 4

5 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET Fund 10 General Fund The general fund is used to account for all financial transactions relating to current operations, except for those required to be accounted for in other funds. GENERAL FUND Proposed Budget Beginning Fund Balance 2,292,465.46 2,031,701.03 1,846,957 Ending Fund Balance 2,031,701.03 1,846,957.30 2,236,434 REVENUES & OTHER FINANCING SOURCES Transfers-In (Source 100) 0.00 0.00 0 Local Sources (Source 200) 8,477,285.98 8,882,955.08 9,539,575 Inter-district Payments (Source 300 + 400) 837,387.41 798,172.42 810,800 Intermediate Sources (Source 500) 4,355.81 0 0 State Sources (Source 600) 1,665,468.00 1,764,089.80 1,737,454 Federal Sources (Source 700) 135,002.53 147,751.85 140,000 All Other Sources (Source 800 + 900) 18,272.35 18,835.05 17,200 TOTAL REVENUES & OTHER FINANCING SOURCES 11,137,772.08 11,611,804.20 12,245,029 EXPENDITURES & OTHER FINANCING USES Instruction (Function 100 000) 5,943,289.57 5,765,751.46 5,889,973 Support Services (Function 200 000) 5,367,344.83 4,406,213.81 4,806,213 Non-Program Transactions (Function 400 000) 944,405.95 1,226,571.24 1,110,676 TOTAL EXPENDITURES & OTHER FINANCING USES 12,255,040.35 11,398,536.51 11,806,862 Special Projects Funds Special projects funds reported below include combined budgets for both the Gift Fund and Special Education Fund. Fund 21 Special Revenue Trust Fund This fund is used to account for trust funds that can be used for district operations. The source of such funds is gifts and donations from private parties. Cash and investments in this fund are expended pursuant to donor specifications. There may be a fund balance in this fund. Fund 27 Special Education Fund This fund is used to account for special education and related services funded wholly or in part with state or federal special education aid or charges for services provided to other districts as a result of being a host district for a special education package or cooperative program. No fund balance or deficit can exist in this fund. SPECIAL PROJECTS FUND Proposed Budget Beginning Fund Balance 95,098.65 99,747.69 100,600 Ending Fund Balance 99,747.69 100,600.30 100,600 REVENUES & OTHER FINANCING SOURCES 1,779,640.63 1,709,131.06 1,943,621 EXPENDITURES & OTHER FINANCING USES 1,774,991.59 1,708,278.45 1,943,621 5

6 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET DISTRIBUTION OF PROPOSED BUDGET REVENUE & EXPENDITURES 1% 0% 1% 3% 16% Expenditures - General Fund 10% 0% 19% 49% Salaries Fringe Benefits Purchased Services Non-Capital Objects Capital Objects Debt Retirement 0% 1% 0% 7% Revenue - General 0% Fund 15% Local Sources 80% Interdistrict Payments Intermediate Sources State Sources Enrollment - Third Friday in September Grade 2010-11 2011-12 2012-13 4K 70 79 63 75 71 K 81 90 94 78 83 1-8 772 784 778 778 759 Year Totals 923 953 935 931 913 6

7 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET Debt Service Funds These funds are used for recording transactions related to repayment of the following general obligation debt: promissory notes (issued per statute 67.12(12)) and bonds. Debt tax levies must be recorded in these funds. The resources in these funds may not be used for any other purpose as long as a related debt remains. The outstanding debt at the beginning of is $4,665,000 and is broken down in the table below. payment on current debt is anticipated to be made in April 2024. Final DEBT SCHEDULE Balance as of Description of Issue Payoff Date 6/30/2014 Taxable GO Promissory Note dated 06/08/10 04/01/18 1,705,000 Taxable GO Promissory Note dated 6/08/10 04/01/21 1,585,000 GP Refunding Bond dated 9/07/10 04/01/22 375,000 Qualified School Construction Bond (QSCB) dated 9/07/10 04/01/24 1,000,000 Fund 39 Referendum Approved Debt Service Funds This fund is used to account for transactions for the repayment of debt issues that were either authorized by school board resolution before August 12, 1993, or approved by referendum. A fund balance may exist in this fund. DEBT SERVICE FUND Proposed Budget Beginning Fund Balance 132,675.53 167,345.95 154,531 Ending Fund Balance 167,345.95 154,531.3 140,783 REVENUES & OTHER FINANCING SOURCES 844,295.94 796,960.87 797,565 EXPENDITURES & OTHER FINANCING USES 809,625.52 809,775.52 811,313 7

8 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET Fund 49 Capital Projects Fund State statute restricts the use of this fund for capital expenditures related to buildings and sites. The Department of Instruction defines capital expenditures related to buildings and sites as being expenditures for acquiring and remodeling buildings and sites, and maintenance or repair expenditures that extend or enhance the service life of buildings and building components, sites and site components. The resources in capital projects funds may not be used for any purpose other than that for which the fund was established. CAPITAL PROJECTS FUND Prop. Budget Beginning Fund Balance 166,953.28 167,011.67 71,162 Ending Fund Balance 167,011.67 71,162.68 31,172 REVENUES & OTHER FINANCING SOURCES 58.39 39.01 10 EXPENDITURES & OTHER FINANCING USES 1,430.63 0.00 40,000 Fund 50 Food Service Fund All revenues and expenditures related to pupil and elderly food service activities are recorded in this fund. A fund balance in the Food Service Fund is permitted but there may be no deficit in the Food Service Fund. Any food service fund deficit resulting from student food services must be eliminated by an operating transfer from the General Fund. In order to comply with federal requirements of the Healthy Hunger-Free Act, the District has increased school lunch prices for by $0.05. FOOD SERVICE FUND Prop. Budget Beginning Fund Balance 0.00 0.00 0.00 Ending Fund Balance 0.00 0.00 0.00 REVENUES & OTHER FINANCING SOURCES 88,741.95 83,059.78 79,500 EXPENDITURES & OTHER FINANCING USES 88,741.95 83,059.78 79,500 Fund 80 Community Service Fund This fund is used to account for activities such as adult education, community recreation programs and other programs which are not elementary and secondary educational programs but have the primary function of serving the community. The district may adopt a separate tax levy for this Fund. Statute 120.13(19) permits a school board to establish and maintain community education, training, recreational, cultural or athletic programs and services, outside regular curricular and extracurricular programs for pupils, under such terms and conditions as the school board prescribes. The school board may establish and collect fees to cover all or part of the costs of such programs and services. COMMUNITY SERVICE FUND Proposed Budget Beginning Fund Balance 0.00 0.00 0.00 Ending Fund Balance 0.00 0.00 0.00 REVENUES & OTHER FINANCING SOURCES 37,000.00 37,000.00 37,000.00 EXPENDITURES & OTHER FINANCING USES 37,000.00 37,000.00 37,000.00 8

9 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET Fund 99 Package and Cooperative Program Funds This fund is to be used for all types of cooperative instructional funds except those operated by CESA or for special education services. No fund balance or deficit can exist in this fund. PACKAGE & COOPERATIVE PROGRAM FUND Proposed Budget Beginning Fund Balance 0.00 0.00 0 Ending Fund Balance 0.00 0.00 0 REVENUES & OTHER FINANCING SOURCES 101,738.44 109,469.27 108,236 EXPENDITURES & OTHER FINANCING USES 101,738.44 109,469.27 108,236 All Fund Expenditures Summary The following table compares audited results from fiscal year as compared to the fiscal year. The proposed budget for is less than 1% higher than the previous year. In, the district budget included expenditures for completion of energy efficiency measures which are not included for. The projected total tax levy for is $682,861 or 7% higher than as a net result of the passage of the April referendum.. The final levy will be determined after enrollment and property values are known in October. ALL FUNDS Total Expenditures and Other Financing Uses Proposed Budget GROSS TOTAL EXPENDITURES -- ALL FUNDS 14,555,633.77 15,041,075.09 15,067,329 Interfund Transfers (Source 100) - ALL FUNDS 1,099,678.9 1,121,687.16 1,219,212 Refinancing Expenditures (FUND 30) 0.00 0.00 0.00 NET TOTAL EXPENDITURES -- ALL FUNDS 13,455,954.87 13,919,387.93 13,848,117 PERCENTAGE INCREASE NET TOTAL FUND EXPENDITURES FROM PRIOR YEAR 3.4% -0.5% FUND PROPOSED PROPERTY TAX LEVY Proposed Budget General Fund 8,111,497 8,528,714 9,210,968 Referendum Debt Service Fund 801,588 754,238 754,825 Non-Referendum Debt Service Fund 0.00 0.00 0 Capital Expansion Fund 0.00 0.00 0 Community Service Fund 37,000 37,000 37,000 TOTAL SCHOOL LEVY 8,950,085 9,319,952 10,002,813 PERCENTAGE INCREASE -- TOTAL LEVY FROM PRIOR YEAR 4.1% 7.3% 9

10 TAX LEVY EXPLANATION The school district tax levy is made up of several components. These include: Amount of operational dollars needed-general Fund, Capital Projects, Community Service levies Amount of debt service tax dollars needed-debt Service Fund levy Equalized value of property in the school district Mill (tax) rate The tax levy is the total amount of property taxes levied or assessed to municipalities in our school district to fund school operations. The maximum tax levy amount, other than referendum-approved long-term debt or long-term debt incurred prior to 1993, is determined through the state s revenue cap (limit) formula. Taxpayer approval, through the referendum process, is required if a school district wants to exceed the revenue limit. The tax levy approved at the Annual Meeting will be adjusted by the Board of Education in October when student enrollment has been determined (September 3 rd Friday count) and the Department of Public Instruction (DPI) has certified the district s state equalization aid amount for the fiscal year which is received in. Equalized valuation is the fair market value of all properties within a school district as determined by the Wisconsin Department of Revenue. The Wisconsin Department of Revenue uses property sales information to determine a municipality s equalized fair market valuation. This information is reported to the school district in October of each year. The school district distributes the certified (approved) tax levy among the municipalities according to the proportion of equalized value each municipality has in comparison to the total equalized value of the school district. Each municipal treasurer distributes this levy among the various residents based on the assessed value of the property within the municipality. Five year history of tax levy distribution by municipality is provided. Equalized valuation plays a very important role in determining the school mill (tax) rate. For purposes of budget projections, the school district must estimate the equalized value and has estimated $11,536,857 or 1% increase in equalized value bringing the estimated equalized value to $1,165,222,637. In October, the actual certified equalized values of all municipalities within the school district are reported by the Department of Revenue. The district then calculates the actual mill (tax) rate per thousand dollars of equalized valuation. To calculate the school mill (tax) rate, the district uses the tax levy certified (approved) by the School Board in October and divides that amount by the total equalized value of the school district. The mill rate is defined as the rate one thousand dollars of equalized valuation will raise in property taxes. Property owners in a municipality having more than one school district, fire district, or other governmental entity may find that mill rates vary within the municipality. Property owners may realize different changes (typically increases) in their property assessments depending upon conditions within their community and surrounding communities. The Board is proposing a total tax levy of $10,002,813 to fund the budget. To determine the rate per thousand, the district divides the total levy of $10,02,813 by the estimated equalized value of the district, $1,165,222,637. This produces a projected mill (tax) rate of $ 8.58. Since the district does not receive the official (certified) equalized valuation until October 15, 2015, the property taxpayer in the Fox Point Bayside Area School District may realize a change in the estimated mill rate. For example, if the tax levy remains the same as approved, but the total equalized valuation decreases from the estimate used, the mill rate would increase. If the total equalized valuation increases from the estimate used, the mill rate would decrease. The Board is required to make any adjustments, if needed, to the levy on or before November 1, 2015 The final determination of state aid will also modify the estimated mill rate. 10

11 FOX POINT BAYSIDE SCHOOL DISTRICT PROPOSED BUDGET Changes in the amount of state aid directly affect the local tax levy. Wisconsin Act 16 implemented revenue limits beginning with the 1993-94 school year. 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 Fund, Whenever general state aid changes for a district there is a direct impact on the tax levy. However, since the Fox Point-Bayside District receives only approximately $365,000 in state aid, the impact on the tax levy is minimal. 500,000.00 400,000.00 300,000.00 200,000.00 100,000.00 Fox Point - Bayside School District State Aid 2003-2014 0.00 Each municipality s share of the levy is determined by its share of the total equalized value. 2014 EQUALIZED MUNICIPALITY VALUE % OF DISTRICT Bayside V. 286,008,856 24.790879888 Fox Point V. 843,648,324 73.12635196 Bayside V.-Ozaukee 24,028,600 2.082768152 TOTALS 1,153,685,780 100.00% 11

12 OTHER POST EMPLOYMENT BENEFITS TRUST FUND Fund 73 Other Post Employment Benefits (OPEB) Trust Fund This fund is used to account for resources held in trust for formally established defined benefit pension plans, defined contribution plans, or employee benefit plans. Such plans must be legally established in accordance with state statutes, federal laws and Internal Revenue Service requirements. Specific requirements for use of this fund have been established by the Department of Public Instruction. This fund applies to all post-employment benefit plans where the district is providing such benefits by contribution to a legally established irrevocable trust. Trust fund assets cannot be used for purposes other than to provide benefits for which the trust was established OPEB TRUST FUND Proposed Budget Beginning Fund Balance 3,503833.09 3,211,528.16 2,894,119 Ending Fund Balance 3,211,528.16 2,894,119.21 2,727,012 REVENUES & OTHER FINANCING SOURCES 52,694.43 83,647.19 65,000. EXPENDITURES & OTHER FINANCING USES 344,999.76 401,056.14 232,107 During the fiscal year, funds previously invested in savings with the Wisconsin Investment Series Co-op. were transferred to an account through National Insurance Services. This transfer was made to increase investment earnings on the idle funds. Interest income for the fiscal year was $61,632.62 as compared with $25,986.61 for the fiscal year. 12

13 BUDGET HEARING AND ANNUAL MEETING MINUTES Monday, September 15, 2014 7:00 pm Fox Point Bayside School District Stormonth School Cafeteria Minutes 1. David Smulyan called the meeting to order at 7:07 p.m. 2. Roll call was taken and those present were: David Smulyan, President Mike Weidner, Vice President Dann Jacobson, Clerk Max Dickman, Treasurer Libby Wick, Member Vance Dalzin, Superintendent Janice DeMeuse, Director of Business Services Jennifer Ganske, Director of Teaching, Learning and Special Programs Don Galster, Principal of Bayside Middle School Karen Grimm-Nilsen, Principal of Stormonth Elementary School Paul Reich, Special Education Coordinator Kathleen Wiesner, Executive Assistant Citizens: Gerise Weidner, Lisa Drouin, Julie Wood 3. Introductions of the School Board and Administrative Team David Smulyan, School Board President, introduced the school board and administrative team. 4. Board President Comments Mr. Smulyan reviewed the School Board s Strategic Priorities and spoke on being a destination district for teachers and students. 5. State of the District Dr. Vance Dalzin, Superintendent, reported on district events over the past school year. Dr. Dalzin informed those present that the district had received a ranking of Significantly Exceeds Expectations for the second year in a row under the Wisconsin Department of Public Instruction s school report card ranking system. The district is one of only nine in the state to achieve this ranking two years in a row. 13

14 2012-13 BUDGET HEARING AND ANNUAL MEETING MINUTES (cont.) Dr. Dalzin reviewed technology upgrades in the district over the past year, reporting that the district had added an additional 224 Chromebooks for students and there were now Smart Boards in every classroom Dr. Dalzin commented on the 2014-2015 school budget and the per pupil expenditure needed to maintain the districts high level of education. Dr. Dalzin stated the district was constantly working on different ways to be fiscally responsible. Dr. Dalzin reported three years of teacher contracts had been negotiated 6. Election of the Annual Meeting Chairperson Dann Jacobson explained the process of voting on a chairperson for the Annual Meeting, after which he asked for nominees. Gerise Weidner nominated Lisa Drouin to be the Annual Meeting Chairperson and Mike Weidner seconded the motion. The motion passed 7-0. 7. Approval of the 2013-2014 Budget Hearing and Annual Meeting Minutes Max Dickman moved to approve the minutes from the 2013 Annual Meeting and Libby Wick seconded the motion. The motion passed 7-0. 8. Presentation of the Preliminary Proposed Budget Max Dickman, School Board Treasurer, explained the purpose of the budget hearing. He hen introduced Ms. Janice DeMeuse, Director of Business Services. Janice DeMeuse, Director of Business Services gave a presentation on the 2014-2015 School Budget. The gross expenditures for the 2014-2015 school year are estimated to be $14,603.497.00. Revenues for the same time period are estimated to be $11,670,609.00. Ms. DeMeuse explained where the expenditures and revenues originated. The proposed Tax Levy for the 2014-2015 school year is $9,331,099.00. 9. Public Hearing on the proposed Budget Ms. DeMeuse and Dr. Dalzin answered questions on the 2014-2015 Annual Budget. Mike Weidner had a question on the mil rate. Ms. DeMeuse informed those present that the mill (tax) rate per thousand dollars of equalized valuation would be $8.18. 14

15 10. Adoption of Proposed Resolutions: Resolution A: Report on Fund 73, District Investments Ms. DeMeuse presented information on Fund 73 and reported the amount in the fund is $3,211,528.16. Ms. DeMeuse reported in previous years the money in the fund was in a savings account, but this year the money was moved to an account with a higher rate of interest. Resolution B: School District Budget and Levy Gerise Weidner moved to approve the 2014-2015 Fox Point-Bayside School District Budget and Tax Levy and Mike Weidner seconded the motion. The motion passed 7-0. Resolution C: Set the Date for the Next Annual Meeting Dr. Dalzin informed those present the proposed annual meeting date for the 2015-2016 school year would be Monday, September 21, 2015 at 7:00 p.m., which would be the third Monday of September. Max Dickman moved to approve Monday, September 21, 2015, at 7:00 p.m. as the Annual Meeting date for the 2015-2016 school year and Libby Wick seconded the motion. The motion passed 7-0. 11. Adjourn Gerise Weidner moved to adjourn the meeting at 7:57 p.m. and David Smulyan seconded the motion. The motion passed 7-0 and the meeting adjourned. 15

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17 FOX POINT BAYSIDE SCHOOL DISTRICT Contact Information: Janice DeMeuse Director of Business Services 414 247-4163 jdemeuse@foxbay.k12.wi.us 17