Thompson School District Budget Development 2014-15 February 12, 2014
Presentation Overview 1. 14/15 Budget Development Process 2. Board Focus Areas 3. District Budget Overview All Funds 4. General Fund: Revenues a) School Finance Act b) Mill Levy Overrides (MLO) c) Calculations & Comparisons
SECTION 1 2014-15 Budget Development Process
2014-15 BUDGET DEVELOPMENT PROCESS Red Items = 13/14 review and explanation Green Items = updated financial info for 14/15 FEB MAR APR MAY JUN 1. Education, Understanding & History 2. Enrollment & Revenues Update 3. Update of Recurring Costs FTE $ & Non-FTE $ 4. Proposed New Budget Requests FTE & Non-FTE $ 5. Prioritization of Requests by Senior Staff 6. BOE Feedback/Modifications/Direction 7. Public Hearing & BOE Approval Community Forums
2014-15 BUDGET DEVELOPMENT CALENDAR Red Items = 13/14 review and explanation Green Items = updated financial info for 14/15 DATE Feb 12 Feb 19 Mar 5 Mar 12 Mar 19 Apr 9 Apr 16 TOPICS District Budget Process Overview District Budget Overview (All 10 Funds) General Fund Revenue Overview General Fund Budget History 5 Years General Fund Expenditures Overview no budget discussion planned 14/15 General Fund Revenue Projections 14/15 Recurring GF Expense Projections 14/15 New Expenditure Requests no budget discussion planned Non-General Fund Budgets General Fund Updates & New Information DESCRIPTION Review of 14/15 budget development calendar Explanation of all funds using 13/14 budget info. Explanation of GF revenues using 13/14 budget info. Review key budget changes/strategies of recent yrs. Review 13/14 spending categories summary/detail available for additional conversation as needed Expected revenues for 14/15 enrollment, PPR, etc. Updated costs on recurring budgets: FTE $/Non-FTE $ List of new 14/15 requests NOT YET PRIORITIZED available for additional conversation as needed Draft of all Non-General Fund 14/15 budgets SFA-PPR, negotiations, other revenues/costs, etc.
2014-15 BUDGET DEVELOPMENT CALENDAR Red Items = 13/14 review and explanation Green Items = updated financial info for 14/15 DATE May 7 May 14 May 21 May 28 Jun 3 Jun 4 Jun 11 Jun 18 TOPICS Staff Recommendations no budget discussion planned PROPOSED BUDGET per BOE DIRECTIONS COMMUNITY BUDGET DISCUSSION #1 COMMUNITY BUDGET DISCUSSION #2 PUBLIC HEARING OF PROPOSED BUDGET no budget discussion planned BOE ADOPTION OF 14/15 BUDGET DESCRIPTION List of new 14/15 requests AS PRIORITIZED BY STAFF available for additional conversation as needed PER STATUTE date is tentative date is tentative PER STATUTE available for additional conversation as needed PER STATUTE
SECTION 2 Board Focus Areas
Board of Education s 10 Focus Areas 1. Make TSD the preferred choice for all. 2. Maximize student achievement for all 3. Arts, athletics & co-curricular opportunities. 4. Attract & retain quality employees. 5. Technology for students & staff. 6. Fiscal responsibility, with long range focus. 7. Optimize resources & facilities. 8. Post-secondary readiness. 9. Partner with parents & community. 10. Safe & secure campuses.
SECTION 3 District Budget Overview All Funds
2013-14 TSD BUDGET GOVERNMENTAL 06.30.13 (A) REVENUES EXPENSES NET 06.30.14 1 GENERAL FUND 29.8 115.7 121.2 (5.4) 24.4 2 FEDERAL GRANTS 0.1 6.4 6.4-0.1 3 STATE & LOCAL GRANTS 0.9 1.4 1.4-0.9 4 LAND RESERVE 2.2 0.7 2.7 (2.0) 0.2 5 FEE SUPPORTED 1.4 1.8 1.8-1.4 6 BOND REDEMPTION 12.4 10.5 10.3 0.2 12.6 7 BUILDING FUND 0.1 0.0 0.1 (0.1) - 8 CAPITAL PROJECTS 2.4 1.1 2.8 (1.7) 0.7 9 TOTALS 49.2 137.5 146.5 (9.0) 40.3 PROPRIETARY/FIDUCIARY 06.30.13 (A) REVENUES EXPENSES NET 06.30.14 10 NUTRITION SERVICES 1.1 4.7 4.6 0.1 1.2 11 MEMORIAL TRUST 0.1 0.1 0.1-0.1 12 STUDENT ACTIVITIES 1.1 2.7 2.7-1.1 13 TOTALS 2.3 7.4 7.3 0.1 2.4
BASIC FUND PURPOSES GOVERNMENTAL DESCRIPTION RESTRICTED? 1 GENERAL FUND Easily the largest fund, also the broadest in scope. No 2 FEDERAL GRANTS Primarily IDEA (42%), Title (30%), and Head Start (15%) Yes 3 STATE & LOCAL GRANTS Primarily EC SPED (44%), Integration Project (15%), GT (15%), ELPA (10%) Yes 4 CAPITAL RESERVE Capital items. 100% funded with GF Transfers. Yes 5 BUILDING FUND Capital items. 100% funded w/periodic debt proceeds (7-10 yrs) Yes 6 LAND RESERVE 100% funded with builders "Payments in Lieu of" land donations. Yes 7 FEE SUPPORTED Primarily Tuition Kinder, Aquatics, Elective Class Fees, Facility Use Yes 8 BOND REDEMPTION 100% to service bonded debt principal & interest payments Yes 9 INTERFUND TRANSFERS Monies moved from one fund to another. Typically from General Fund. PROPRIETARY/FIDUCIARY DESCRIPTION RESTRICTED? 10 NUTRITION SERVICES School breakfast, lunch and snack programs. (Approx 40% Free/Reduced) Yes 11 MEMORIAL TRUST Gifts and scholarships as designated by donor. Yes 12 STUDENT ACTIVITIES Athletics & Activities. Ticket sales, participation fees and assoc. expenses Yes
SECTION 4a Colorado School Finance Act
SCHOOL FINANCE ACT TOTAL PROGRAM FORMULA FUNDED PUPIL COUNT (FPC) x PER PUPIL REVENUE (PPR) = TOTAL PROGRAM $ 15,013.8 x $6,310 = 94.7 M Per 13/14 District Budget
Approximately 40% of State s Budget but declining WHO PAYS FOR TSD SCHOOL FINANCE ACT?
13/14 GENERAL FUND REVENUES BUDGET In Millions of $ SFA - PROPERTY TAXES 30.4 SFA - SPECIFIC OWNERSHIP TAX 2.1 SFA - STATE FUNDING 62.2 99 MLO - PROPERTY TAXES 7.5 06 MLO - PROPERTY TAXES 5.3 SO TAX - OTHER 1.9 CATEGORICAL - SPED 3.2 CATEGORICAL - TRANSPORTATION 1.0 CATEGORICAL - VOC/TECH 0.4 CHARTER BILLINGS SPED, ELL, ADMIN 0.9 OTHER 0.8 TOTAL GENERAL FUND REVENUES 115.7 82% 11% 4%
13/14 SCHOOL FINANCE ACT PPR CALCULATIONS Base Funding $5,954.28 Cost of Living Factor cost of housing, goods & services Personnel Costs Factor based upon enrollment Size Factor purchasing power differences Range 1.011 1.650.7992 -.905 1.0297 2.3598 TSD 1.183.8916 1.0297 At Risk Funding based upon district s Free & Reduced count 95% of Statewide Weighted Average = Minimum PPR Negative Factor adjust to state s ability to afford, pro-rata 12% - 30% 16.11% 12% 16.11%
TSD SCHOOL FINANCE ACT FACTS 17 th largest in CO according to enrollment CO Highest PPR is $15,472 CO Weighted average is $6,652 PPR TSD is one of 14 floor funded districts at $6,310 PPR 5% below the CO weighted average 13/14 TSD SFA revenues are $17 M below statute Over 5 years TSD has lost $60 M versus statute Statewide 13/14 SFA Revenues are $1 B below statute
FUNDED PUPIL COUNT (FPC) HISTORY
TOTAL PROGRAM $ HISTORY Negative Factor Total = 61 M
CATEGORICAL PROGRAM FUNDING Per 13/14 Budget Special Education (1) = $3.06 million Transportation (2) = $1.01 million Vocational Education (2) = $.350 million ELPA (3) = $62,014 Gifted & Talented (3) = $139,370 (1) based upon qualified students (2) based upon qualified expenses (approximately 22%) (3) accounted for in TSD State & Local Grants Fund
SECTION 4b TSD MILL LEVY OVERRIDES
1999 MLO BALLOT LANGUAGE
2006 MLO BALLOT LANGUAGE SHALL THOMPSON SCHOOL DISTRICT R2-J S TAXES BE INCREASED $6,540,000 ANNUALLY (OR SUCH LESSER AMOUNT AS THE BOARD OF EDUCATION MAY ANNUALLY DETERMINE), TO BE DEPOSITED IN THE GENERAL FUND OF THE DISTRICT FOR EDUCATIONAL PURPOSES AS APPROVED BY THE BOARD OF EDUCATION WITH EXPENDITURES REPORTED TO THE PUBLIC ANNUALLY, WHICH PURPOSES SHALL INCLUDE BUT NOT BE LIMITED TO: RESTORING 54 TEACHING POSITIONS IN ORDER TO REDUCE CLASS SIZE AND RETURN THE STUDENT-TEACHER RATIO TO THE 2005-06 LEVEL; MAINTAINING ADVANCED COLLEGE PREPARATORY CLASSES FOR QUALIFIED HIGH SCHOOL STUDENTS; FUNDING UTILITY AND OPERATING COSTS OF NEW SCHOOLS AND ADDITIONS AUTHORIZED IN THE 2005 BOND; SUPPORTING LITERACY AND MATH INSTRUCTION FOR STUDENTS; PROVIDING STUDENTS WITH ADEQUATE ACCESS TO CURRENT COMPUTER COMMUNICATION TECHNOLOGY;
MILL LEVY OVERRIDES 1999 MLO (7% GF $) 1 Licensed FTE for class sizes 2 MVHS Operating Costs - FTE & Utilities 3 Technology Replacement Cycle & staffing 4 Counselors & Psychologists Never more than 8.5 mills Maximum of $7.5 million per year Indefinite duration 99 MLO Reserves exhausted in 2010-11 13/14 deficit = $1.247 million 2006 MLO (5% GF $) 1 Restore 54 teacher FTE 2 Staff & Utilities - Coyote Ridge Elementary - Ponderosa Elementary - High Plains Elementary - MVHS Addition - Ferguson High School 3 Support Staff - Grounds, Electrician, Bus Driver 4 Instructional Coaches, HS AP's, GT, Spanish in EL 5 Technology - Bandwidth, SIS Software Support Never more than 4.15 mills Maximum of $6.54 million per year Indefinite duration 06 MLO Reserves exhausted in 2011-12 13/14 deficit = $1.304 million
SECTION 4c CALCULATIONS & COMPARISONS
MILL LEVY & TAX CALCULATIONS per certification on 12.15.13 DESCRIPTION IN MILLIONS $ MARKET VALUE ASSESSED VALUE MILL LEVY PER $100,000 MARKET VALUE / 1000 REVENUE RESIDENT. NON-RESID. 7.9% 29.0% SCHOOL FINANCE ACT 11,689 1,311 22.360 1,000 29,314,149 $ 178 $ 648 1999 MILL LEVY OVERRIDE 11,689 1,311 5.720 1,000 7,498,968 $ 46 $ 166 2006 MILL LEVY OVERRIDE 11,689 1,311 4.150 1,000 5,440,685 $ 33 $ 120 ABATEMENTS 11,689 1,311 0.207 1,000 271,379 $ 2 $ 6 BOND REDEMPTION 11,689 1,311 7.979 1,000 10,460,536 $ 64 $ 231 TOTALS 40.416 52,985,718 $ 322 $ 1,172 * Yellow shading indicates that factor is fixed and drives the calculation.
TOP 20 DISTRICTS MILLS COMPARISON Mills Levied at 12.15.12 DISTRICT FPC Assessed Value SFA Other Override Abate. Bonds TOTAL ADAMS 12 FIVE STAR 41,342.7 1,737,241,880 27.000-20.377 0.460 22.765 70.602 AURORA 37,098.7 1,757,447,374 26.010-20.682 0.888 16.250 63.830 ACADEMY 22,720.9 1,302,804,250 26.952-19.121 0.505 13.638 60.216 CHERRY CREEK 50,435.3 4,288,389,810 25.712 1.595 18.133 1.337 11.260 58.037 LITTLETON 14,882.0 1,275,353,070 25.353 1.815 20.777 0.493 8.497 56.935 POUDRE 26,345.6 2,345,713,471 27.000-14.924 0.332 12.430 54.686 ST VRAIN 27,207.8 2,436,588,262 24.995-13.394 0.311 14.800 53.500 JEFFERSON 80,815.9 6,949,478,126 26.252-16.300 0.575 7.489 50.616 DENVER 77,251.5 10,007,267,892 25.541-12.714 1.320 10.913 50.488 DOUGLAS 61,199.1 4,577,728,681 25.440-7.365 0.794 15.128 48.727 WINDSOR 4,481.0 483,961,570 27.000-5.363 0.650 14.936 47.949 BRIGHTON 15,352.6 807,657,362 26.262-0.929 0.433 18.005 45.629 FALCON 14,572.9 663,717,810 24.459-9.800 0.114 11.212 45.585 BOULDER 28,538.4 4,732,098,619 25.023 1.543 12.620 0.354 6.007 45.547 COLORADO SPRINGS 28,017.0 2,316,851,070 24.026-10.842 0.531 8.046 43.445 HARRISON 10,396.9 551,415,620 18.092-10.427 0.325 12.500 41.344 THOMPSON 14,903.3 1,288,846,309 22.360-9.969 0.501 8.054 40.884 GREELEY 19,235.9 973,211,311 27.000 - - 0.204 10.908 38.112 MESA VALLEY 20,908.3 1,721,134,040 24.214-4.884 0.356 6.640 36.094 PUEBLO CITY 16,900.0 950,280,984 27.000 - - 0.332 8.700 36.032
OVERRIDE & BONDING CAPACITIES MILL LEVY OVERRIDE CAPACITY CALCULATIONS BONDING CAPACITY CALCULATIONS - HIGHER OF 1 13/14 TOTAL PROGRAM $ ESTIMATE $ 112,773,995 2 CAPACITY FACTOR PER STATUTE 25% 3 TSD MLO CAPACITY $ 28,193,499 9 ASSESSED VALUATION - 12.10.13 $ 1,311,008,455 10 CAPACITY FACTOR PER STATUTE 20% 11 TSD BONDING CAPACITY $ 262,201,691 4 1999 MLO $ 7,500,000 5 2006 MLO $ 6,540,000 6 CAPACITY COMMITED 14,040,000 12 ACTUAL VALUATION - 12.10.13 $ 11,688,512,847 13 CAPACITY FACTOR PER STATUTE 6% 14 TSD BONDING CAPACITY $ 701,310,771 7 CAPACITY AVAILABLE - $ $ 14,153,499 8 CAPACITY AVAILABLE - % 50% 15 CURRENT BONDED DEBT - AS OF 12.31.13 $ 101,340,000 16 REMAINING CAPACITY - PER ASS.VALUE $ 160,861,691 61% 17 REMAINING CAPACITY - PER ACT.VALUE $ 599,970,771 86% Other Revenue Sources Available 1. Special Building & Technology Override 2. Transportation Override
REGIONAL COMPARISONS Funding, Sub-populations, Key Costs TSD POUDRE ST VRAIN GREELEY WINDSOR LITTLETON 1 FUNDED PUPIL COUNT 15,116 26,849 28,012 19,864 4,569 14,858 2 SFA PER PUPIL REVENUE 6,246 6,245 6,467 6,484 6,247 6,337 3 MLO PER PUPIL REVENUE 847 1,304 1,165 0 568 1,783 4 TOTAL PER PUPIL REVENUE 7,093 7,550 7,632 6,484 6,815 8,120 5 PPR DIFF VS TSD FPC (in M $) N/A 6.9 8.1 (9.2) (4.2) 15.5 6 AT RISK 1.00 0.80 1.07 1.92 0.44 0.60 7 ELL 1.00 2.00 2.62 5.07 0.26 0.72 8 SPECIAL EDUCATION 1.00 0.81 0.59 0.90 0.59 1.05 9 GIFTED & TALENTED 1.00 0.95 0.89 0.93 0.85 1.04 10 TRANSPORTATION 1.00 0.97 0.85 0.73 0.69 0.95 11 ELEM. AVG. ENROLLMENT 318 424 413 12 ELEM. ENROLL EFFICIENCY 1.00 1.33 1.30
Discussion