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Multi-Year Analysis

This report analyzes critical financial elements affecting the Waunakee School District, including enrollment trends, property valuation, equalization aid, revenue limits, and tax levy dynamics. Notably, the district has experienced increasing enrollment, impacting state aid positively while presenting challenges such as the need for additional staffing and facilities. The analysis reveals a reliance on property taxes and highlights fluctuating property valuations. It offers insights into future trends and challenges that the district may face as it navigates fiscal uncertainties.

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Multi-Year Analysis

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  1. Multi-Year Analysis Waunakee School District Submitted by: Jeff Pruefer UW-Whitewater School Business Management Graduate Program

  2. Five Areas Explored • District Membership (Enrollment) • Property Valuation • Equalization Aid • Revenue Limit • Tax Levy

  3. Membership (Enrollment)

  4. Membership (Enrollment)

  5. Membership (Enrollment)Current Year Data

  6. Membership (Enrollment)Current Year Data *For DPI purposes, FTE includes open enrollment out, but not in.

  7. Membership Relevance • District is an anomaly when compared statewide (most districts losing students) • State aid is reflected positively by increased enrollment • Revenue limit continues to increase due to increased enrollment numbers • Continuous expansion in community equates to an increase in enrollment being anticipated in years to come • Open enrollment revenues have a positive impact on budget (more in than out)

  8. Membership challenges • Increased enrollment might require additional staffing • Increased enrollment will require new facilities (See chart below) • Both of these items will lead to increase costs

  9. Property Valuation

  10. Property Valuation (Waunakee Compared to state average)

  11. Property Valuation Relevance • Waunakee has average property value when compared to statewide averages • Previously was above threshold for tertiary guarantee • Recently dipped below, despite inclusion of increased affluent neighborhoods • Currently gaining dollars in tertiary formula • Value per member dip due to a few factors • Decreasing home values • Lack of large business expansion actually keeps valuation down (and general aid up) • Membership is growing faster than property valuation (this trend began in 2009-2010) • Growing areas reflect higher property values • Valuation will increase once dwellings in new neighborhoods are completed (Bishop’s Bay) • As valuation increases, district will lose dollars at tertiary level (property tax increase will make up difference if spending patterns remain constant), unless enrollment growth keeps pace

  12. Property Valuation Challenges • Property values have not increased significantly in recent years • Many properties have decreased in value (similar to rest of state) • The same amount or less dollars coming in from property taxes • Property tax levy increases the tax rate for property owners • Increased taxes can drive down values

  13. General Aid

  14. Equalization Aid Data

  15. Equalization Aid Relevance • For the most part, equalization aid has consistently increased from year to year • Recently, the percentage of dollars received from the state is decreasing, while dollars received as a percentage of aid through property tax, is increasing • Equalized aid, as a percentage of revenue, has decreased over the past decade (see the next slide for an illustration)

  16. Revenues (General State Aid versus property tax) **More dollars for schools are coming from tax versus state aid over the past eight years**

  17. Equalization Aid Challenges • Increased reliance on property tax levy versus funding from state causes concerns from local taxpayers • Equalized rates have increased, despite equalized values remaining stagnant (see property valuation section) • This leads to taxpayers paying more in local property taxes • Discourages taxpayers in local communities

  18. Revenue Limit Data

  19. Revenue Limit Data

  20. Revenue Limits compared to state average

  21. Revenue Cap Increase

  22. Revenue limit relevance • It is apparent that the district levies to the limit • Due to steady enrollment increases, revenue limit has increased in this district • Saw dip in revenue limit in 2011-2012 due to WI Act 10 (this put us at 2008-2009 levels) • Treat this as an anomaly • If enrollment continues to increase (as expected), revenue limit will continue to increase as well • Increase in limit is significantly lower in more recent years, versus years prior (statewide) • Assume we will be back to 2009-2010 levels in the 12-13 year

  23. Revenue Limit Challenges • Increases in revenue cap do not keep pace with increased costs • Increase cap at more significant rate? • Where does the funding come from? • Shared costs in 2011-2012 increased by 3.4%, however equalization aid decreased by 10% • Dollars were recouped by altering pension and health insurance contributions • Difficult to plan when revenue limit increase is unstable • Fiscal uncertainty makes it difficult to budget for raises, increased health insurance costs, etc.

  24. Tax levy data

  25. Tax levy Waunakee versus statewide(graphic representation)

  26. Levy relevance • Able to keep levy increases low the past couple of years due to debt refinancing and lower revenue limit increases • The year 2000 saw a big decrease in the levy due to the creation of a full day Kindergarten • Fall 2006 required higher levy due to referendum approval • Steady increase in levy after 2006 • Currently: • Due to a moderate increase in state equalization aid for the 2013-14 school year, the revenue cap formula requires a property tax levy increase. • In an effort to limit the increase of the property tax levy, the School Board approved a debt refinancing in the spring of 2013. • The property tax levy for 2013-14 increases by 1.97%.

  27. Levy challenges • Increased levies provide challenges for local taxpayers • Increased levies make it difficult to pass future referendums • Increased levies discourage community financial support

  28. District financial health • Increasing enrollment is essential to district success due to stabilized/decreasing property valuations • Increased state aid (due to increased membership) will help offset costs (facilities, increased staff, etc.) associated with growth • Levy should remain fairly consistent with prior years • Do not expect a big change in property valuation • Referendum • Schools nearing capacity (Intermediate and Prairie currently at or over capacity) • Important to keep community support high with referendum on the horizon • Overall, Waunakee is in solid financial shape • Due to careful long-term planning • Due to continued community growth

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