McLean County Unit SD No. 5 PMA Financial Planning Program Presented by Scott Smith Senior Financial Advisor PMA Securities, Inc. PMA Financial Network, Inc. May 26, 2010
Revenues by Source REVENUE BY SOURCE - FY 2010 General State Aid 15% Other State 11% Federal 4% Other Local 6% Levy 64% Education, Operations & Maintenance, Transportation, and Working Cash Funds 2
Key Revenue Assumptions Local Revenue Equalized Assessed Valuation (EAV) Growth 2009 Levy 3.34% growth (actual) 2010 Levy 2.5% growth 2011 Levy 3.5% growth 2012 Levy 5% growth 2013 Levy 6% growth Anticipated FY2011 Property Tax Revenue (excluding Debt Service Fund) Approximately $79 million (Ed, O&M, Trans, IMRF, WC, Tort, Life Safety Funds combined) General State Aid Foundation Level currently $6,119 $450 decrease assumed for FY2011 $150 increase each year for FY2012-FY2015 Other State Revenue 20% decrease in Special Education funding for FY2011 (then maintained at that level) Elimination of Reading Improvement and ADA Block Grant 3% increases in Early Childhood, Driver Education, Bilingual Education, Career & Tech Ed Federal Revenue 3% increase each year in Federal programs 3
EAV History and Assumptions Total EAV % Change 8% 7% 7.3% 6% 5% 4% 6.1% 6.1% 5.0% 6.0% 6.0% 6.0% 3% 3.3% 3.5% 2% 2.5% 1% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Actual Projected 4
General State Aid Millions $18 General State Aid $16 $14 $12 $13.1 $16.1 $17.0 $17.0 $13.4 $14.7 $15.1 $10 $8 $10.2 $11.5 $10.0 $11.5 $6 $4 $2 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Actual Projected 5
Expenditures by Object Expenditures by Object - FY2010 Capital Outlay 0.3% Other Objects 4.5% Supplies And Materials 10.7% Purchased Services 5.7% Benefits 10.6% Salary Costs 68.2% Education, Operations & Maintenance, Transportation, Funds 6
Key Expenditure Assumptions Salaries Teachers FY2011 current agreement FY2012 through FY2015 1% base increase plus step Administrators FY2011 salary freeze FY2012 and future years 1.4% increase each year Other Support Staff Current contracts where applicable, otherwise 1.4% increase each year Health Insurance FY2011 4.35% increase FY2012 and future years 5% increase each year 7
Tier 1 and Tier 2 Reductions Central Office/Administration Administrative Personnel 2 FTE 287,700 Consulting 176,200 Purchase Services/Storage 90,200 Supplies 95,600 Equipment 130,000 TOTAL $779,700 8
Tier 1 and Tier 2 Reductions District Wide Programs Title Programs - Federal 394,000 State Programs 1,058,500 Psychology Intern 14,000 Gifted Education (amt increased from $26,000) 76,000 Alternative Education 28,200 Curriculum Adoption 599,100 Staff Development 367,900 Library Services District Wide 72,700 Assessment & Testing 125,000 Data/Tech Center 347,600 Furlough Days 237,660 PBIS 14,300 Total $3,334,960 9
Tier 1 and Tier 2 Reductions Elementary Education Administrative Personnel SAMs 4 FTEs 224,100 Teachers-8 FTE (was 6 FTE s) 345,600 Pre K 1 certified FTE, 1 EOP FTE 73,100 Teaching Assistants 51 FTEs 958,800 Supplies 142,700 Equipment 80,000 TOTAL $1,824,300 10
Tier 1 and Tier 2 Reductions Middle School Education Administrative Personnel SAM 1FTE 43,200 Teachers 17 FTEs (was 6 FTE s) 734,400 Teaching Assistants 14 FTEs 263,200 Textbooks 13,000 Supplies 84,900 Equipment 99,400 Maintenance 45,000 Total $1,283,100 11
Tier 1 and Tier 2 Reductions High School Education Administrative Personnel SAM 1FTE 43,200 Teachers 19 FTEs (was 13 FTE s) 820,800 Teaching Assistants 10 FTEs 188,000 Textbooks 25,000 Driver Education Vehicle 16,000 Supplies 174,800 Equipment 105,600 Total $1,373,400 12
Certified Teaching Staff Assumptions FTE Retirees Replaced Retirees Staff Change FY - 2010 920.7 15 FY - 2011 875.7 20 15 (45) FY - 2012 885.2 24 20 9 FY - 2013 903.8 10 24 19 FY - 2014 922.8 10 10 19 FY - 2015 942.1 10 10 19 Note: New hires assumed at Lane 1, Step 7 13
Educational Fund Fund Balance $5,000,000 $3,532,428 $0 ($5,000,000) ($2,279,736) ($10,000,000) ($7,621,754) ($15,000,000) ($20,000,000) ($11,190,784) ($13,616,567) ($15,515,035) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Note: June 30, 2009 Educational Fund Balance was $7,930,092 14
Operations & Maintenance Fund Fund Balance $0 ($500,000) ($1,000,000) ($810,893) ($877,910) ($1,500,000) ($2,000,000) ($2,500,000) ($1,433,067) ($1,901,505) ($1,904,072) ($2,129,939) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 15
Transportation Fund Fund Balance $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 $917,306 $840,249 $665,887 $601,392 $551,192 $582,637 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 16
Working Cash Fund Fund Balance $16,000,000 $14,000,000 $12,671,032 $13,993,280 $12,000,000 $10,000,000 $8,000,000 $8,073,179 $9,132,669 $10,240,371 $11,420,122 $6,000,000 $4,000,000 $2,000,000 $0 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 17
Aggregate Projections Educational, O&M, Transportation, Working Cash Funds Fund Balance $14,000,000 $12,000,000 $11,712,020 $10,000,000 $8,000,000 $6,815,271 $6,000,000 $4,000,000 $2,000,000 $1,851,437 $0 ($2,000,000) ($4,000,000) ($1,070,776) ($2,524,281) ($2,843,190) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 18
Aggregate Projections 2010 2011 2012 2013 2014 2015 $20,000,000 $11,712,020 $10,000,000 $6,815,271 $0 $1,851,437 ($1,070,776) ($2,524,281) ($2,843,190) ($10,000,000) ($16,723,829) ($20,000,000) ($21,568,055) ($27,595,781) ($30,000,000) ($32,056,147) ($35,357,693) ($37,680,370) ($40,000,000) ($50,000,000) Educational Operations and Maintenance Transportation Working Cash 2010 2011 2012 2013 2014 2015 FY-End Balances Low-Point Balance 19
ISBE Financial Profile Score Financial Profile Score 3.5 3.0 2.5 2.0 1.5 1.0 3.25 2.9 3.25 2.1 3.15 2.8 2.45 2.45 2.1 2.1 2.55 0.5-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 - Watch - 2.61 2.62 - Early Warning - 3.07 3.08 - Review - 3.53 3.54 - Recognition - 4 20
Scenario: $300 Foundation Level Decrease for FY11 2010 2011 2012 2013 2014 2015 $20,000,000 $15,000,000 $11,712,020 $10,000,000 $5,000,000 $8,645,979 $5,564,002 $4,587,201 $5,144,408 $6,894,279 $0 ($5,000,000) ($10,000,000) ($15,000,000) ($16,723,829) ($20,000,000) ($25,000,000) ($20,029,547) ($24,181,260) ($26,702,176) ($27,999,089) ($28,259,187) ($30,000,000) ($35,000,000) Educational Operations and Maintenance Transportation Working Cash 2010 2011 2012 2013 2014 2015 FY-End Balances Low-Point Balance 21
Scenario: $200 Foundation Level Decrease for FY11 2010 2011 2012 2013 2014 2015 $20,000,000 $15,000,000 $11,712,020 $10,000,000 $9,866,828 $8,039,494 $8,366,856 $10,278,871 $13,432,308 $5,000,000 $0 ($5,000,000) ($10,000,000) ($15,000,000) ($16,723,829) ($19,003,497) ($20,000,000) ($21,904,464) ($23,125,190) ($23,071,349) ($21,932,017) ($25,000,000) Educational Operations and Maintenance Transportation Working Cash 2010 2011 2012 2013 2014 2015 FY-End Balances Low-Point Balance 22
Scenario: $100 Foundation Level Decrease for FY11 2010 2011 2012 2013 2014 2015 $25,000,000 $20,008,907 $20,000,000 $15,000,000 $11,712,020 $11,087,905 $10,517,081 $10,000,000 $12,151,977 $15,431,052 $5,000,000 $0 ($5,000,000) ($10,000,000) ($15,000,000) ($16,723,829) ($17,977,221) ($19,625,572) ($19,542,740) ($18,125,891) ($15,566,275) ($20,000,000) ($25,000,000) Educational Operations and Maintenance Transportation Working Cash 2010 2011 2012 2013 2014 2015 FY-End Balances Low-Point Balance 23
Scenario: No Foundation Level Change for FY11 2010 2011 2012 2013 2014 2015 $30,000,000 $26,627,058 $25,000,000 $20,606,068 $20,000,000 $15,947,031 $15,000,000 $11,712,020 $12,308,984 $12,996,956 $10,000,000 $5,000,000 $0 ($5,000,000) ($9,158,982) ($10,000,000) ($15,000,000) ($16,723,829) ($16,950,941) ($17,344,394) ($15,950,355) ($13,157,599) ($20,000,000) Educational Operations and Maintenance Transportation Working Cash 2010 2011 2012 2013 2014 2015 FY-End Balances Low-Point Balance 24
Educational Fund General State Aid Scenario Summary Educational Fund - FY2011 Projection Foundation Level Revenue Expense Surplus (Deficit) $450 Decrease 82,755,585 88,567,748 (5,812,164) $300 Decrease 84,584,061 88,567,748 (3,983,688) $200 Decrease 85,803,632 88,567,748 (2,764,117) $100 Decrease 87,023,589 88,567,748 (1,544,160) No Increase/Decrease 88,243,550 88,567,748 (324,198) 25
Additional Notes Anticipated FY2011 Property Tax Revenue (excluding Debt Service Fund) Approximately $79 million (Ed, O&M, Trans, IMRF, WC, Tort, Life Safety Funds) Anticipated interest income in the Capital Projects Fund Approximately $4.9 million 26
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