1 / 52

2012-2013 Budget Hearing

2012-2013 Budget Hearing. Monday, October 22, 2012 5:30 pm Presented by: Bob Schafer Financial Officer, KASD. Kaukauna High School Media Center 1701 County CE Kaukauna, WI 54130. 2011-2012 Year In Review. 2011-2012 Year In Review. 2011-12 Budget vs. Actual Revenues

plato
Télécharger la présentation

2012-2013 Budget Hearing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2012-2013 Budget Hearing Monday, October 22, 2012 5:30 pm Presented by: Bob Schafer Financial Officer, KASD Kaukauna High School Media Center 1701 County CE Kaukauna, WI 54130

  2. 2011-2012 Year In Review

  3. 2011-2012 Year In Review • 2011-12 Budget vs. Actual • Revenues • Budgeted $43,364,940 • Actual $43,429,702 • Revenues came in $64,762 more than anticipated or 0.14% higher • Expenditures • Budgeted $41,039,402 • Actual $40,860,343 • Expenditures were $179,059 less than anticipated or 0.44% lower

  4. 2011-2012 Year In Review • 2011-12 Budget vs. Actual • Fund balance • KASD budgeted for a surplus of $2,325,538 which was to be added to the District’s fund balance • Surplus set aside to cover cost of Park School renovation • KASD added $2,569,358 to its operating fund balance based on revenues taken is less expenditures • As of June 30, 2012, the operating fund balance for KASD was $6,767,234 or 16.56% of 2011-12 operating expenditures • On June 30, 2011, KASD had 9.46% in its operating fund balance

  5. 2010-11 vs. 2011-12 Operating Budget • Fiscal Year-to-year Comparison • Revenues • 2010-11 operating revenues = $45,092,828 • 2011-12 operating revenues = $43,429,702 • Revenues reduced by 3.68% between 2010-11 and 2011-12 • Revenues from state sources down by $2.8 million • Expenditures • 2010-11 operating expenditures = $44,381,439 • 2011-12 operating expenditures = $40,860,343 • KASD reduced operating costs in 2011-12 by 7.93% • Driven by change in benefit costs for all staff members

  6. 2010-11 vs. 2011-12 Operating Budget State source revenue (equalization aid) fell by almost 4% from 10-11 to 11-12 Local source revenue increased by 2.8% to help offset the fall in revenue from state

  7. 2010-11 vs. 2011-12 Operating Budget Benefit costs from 2010-11 to 2011-12 fell by nearly 4% or $2.4 million of total costs Purchased services for 2011-12 increased by 2.4% over 2010-11 – the cost was up $250,000 but the total % of the budget increased based on lower spending

  8. 2011-2012 Year In Review • Salaries & Benefits • Salaries and benefits accounted for 69.06% of the 2011-12 operating budget, down from 72.44% in 2010-11 • Classroom personnel accounted for 81.75% of the total salary cost paid in 2011-12 ($16.1 million of $19.7 million) • 11.9% of the $19.7 million salary cost was paid to non-classroom support staff including administration, administrative assistants, information technology personnel, and maintenance • Athletic/activity salaries equated to 1.25% of the operating budget for 2011-12 • The remainder of the salary costs were spread out between non-classroom support such as nurses, STEP workers, and substitute teachers • Sub teacher cost for 2011-12 was $350,000 or 1.7% of total salaries

  9. 2011-2012 Year In Review • Salaries & Benefits • Benefit structures for all employees were modified for 2011-12 based on new state laws and the implementation of the Employee Handbook • State law mandated that employees pay 50% of the Wisconsin Retirement System deposit which resulted in a $1.2 million reduction in benefit cost for KASD • A change in health insurance carrier and increased contribution by employees from 10% of the cost to 12.6% reduced expenses by $800,000 • Elimination of District paid long term care saved $160,000 • Benefit costs for 2011-12 were $2,409,927 less when compared to 2010-11 • Benefit costs were 20.63% of KASD’s operating budget in 2011-12

  10. 2011-2012 Year In Review • Purchased Services • $9.5 million spent in 2011-12, $9.3 million in 2010-11 • Items included in purchased services are maintenance services, utilities, transportation, public postings, open enrollment transfers, and CESA • Open enrollment cost for 2011-12 was $3.1 million, up $460,000 over previous year • Purchased custodial service increased by $90,000 over 2010-11 with the placement of Building Services staff in each building daily • Purchased maintenance costs were up $70,000 over 2010-11 • The combined cost of BSG staff and increased maintenance cost less the salary and benefits reduced based on the new structure of the maintenance department netted a surplus of approximately $80,000

  11. 2011-2012 Year In Review • Purchased Services • Mild/warm winter • The mild and dry winter of 2011-12 created surplus in several areas • District snowplowing and snow removal was $6,000 in 2011-12, $30,000 in 2010-11 • Heating costs for 2011-12 were $120,000 less than that of 2010-11 • Electricity cost $315,000 in 2011-12, $366,000 in 2010-11 • Bussing • Student transportation costs were the same between the two years at $1.9 million plus $255,000 in gas/diesel • The elimination of the mid-day 4-year old kindergarten route allowed the cost to remain the same

  12. 2011-2012 Year In Review District open enrollment numbers over the past five years show a steady increase in students leaving KASD while those coming in from other districts remains static.

  13. 2011-2012 Year In Review • Major Maintenance Projects • Park Community Charter School • Approximately 20% of the $1.3 million project paid for using 2011-12 funds • River View School • Phase 2 and 3 of the window project completed to finish off installation of energy efficient units throughout the building • Tanner Early Learning Center • Sinks moved from hallways next to restrooms to inside restrooms • Vinyl tile installed in hallways to replace carpet • Kaukauna High School • Redo the wood portion of the gym floor • Moved computer lab and created new computer work area • Throughout District • $60,000 in new carpet/tile installed

  14. 2012-2013 Budget Hearing2012-2013 Tax Levy

  15. 2012-2013 Budget Hearing2012-2013 Tax Levy • Budget Hearing • Unified school districts hold a budget hearing each year – common school districts must hold a budget hearing and annual meeting • The Board of Education for each unified school district sets the tax levy and overall budget • Common school districts set the tax levy via the taxpayers at the annual meeting • The vote to approve the tax levy as well as the overall budget and other key issues such as banking institutions that can be used is set by the general public • The Kaukauna Area School District is a unified school district based on Board of Education action from 20+ years ago

  16. 2012-2013 Budget Hearing2012-2013 Tax Levy • Tax Levy • Each year, per Wis. Stats. 120.12 (3)(a), prior to November 1, each school board must vote a levy necessary to operate and maintain the schools of the school district. In addition, by November 10 (changed from November 6 under 2011 Act 105, first effective for the 2012-13 fiscal year), the district clerk must deliver to the clerk of each municipality a statement showing the proportion of tax to be collected from the property in the school district lying within that municipality (s.120.17(8)(a) Wis. Stats.)

  17. 2012-2013 Budget Hearing2012-2013 Tax Levy • Tax Levy Housekeeping • Laws regarding maximum taxation by school districts were set in 1993 • Tax levy consists of the following • Referendum approved debt • For KASD referendum approved debt is Kaukauna High School • Non-referendum approved debt • KASD has non-referendum approved debt service based on borrowing to pay debt owed to Wisconsin Retirement System • Community Service Fund • Fund 80 – a direct tax to the District – is used for community service programs offered through KASD • General Fund • The amount a public school can tax based on the revenue limit formula

  18. 2012-2013 Budget Hearing2012-2013 Tax Levy • Key Components to the Tax Levy & Revenues • Pupil count • Equalized aid • Property valuation • Debt service • State imposed revenue limit

  19. Pupil Count • 2012-13 Facts and Figures • The District pupil count as of September 21, 2012, was 4,408 students, up from 4,367 in September, 2011 • This count constitutes public school 4K-12 students plus early childhood living in the District • The student membership count for 2012-13 is 4,311 compared to 4,249 for 2011-12 • Membership is computed using students in grades 5K-12 at 1.0 FTE, 4K at .6 FTE, early childhood at .5, and summer school at .4 of the FTE calculation • KASD is educating, as of September 21, 2012, 3,946 students which is 8 more than last year in September • Open enrollment ins and outs dictate the number of students being educated

  20. Pupil Count

  21. Students Educated By KASD Pupils Educated by KASD - History

  22. KASD Open Enrollment History Public school open enrollment for KASD shows 539 students leaving in 2012-13 with 77 non-KASD students choosing to be educated here

  23. Equalization Aid • State Funding • Wisconsin State Equalization Aid is general financial assistance to public school districts for use in funding a broad range of school district operational expenditures. The purposes for which general aid can be used are not restricted as they would be in a categorical aid program. Categorical aids must be used for a specific purpose or category of program, whereas general aid may be used for any expenditure the district deems necessary. • Equalization aid used to constitute “two-thirds funding” for public schools but that is no longer the case • For KASD equalization makes up 60% of the general operating revenue in Fund 10

  24. Equalization Aid • Equalization Aid • KASD is going to receive $23,650,910 in equalization aid in 2012-13 • KASD received $24,503,893 in 2011-12 or $852,983 more than 2012-13 (3.5%) • Equalized aid is based on the following • Membership count from the previous year • Fund 10 revenues and expenditures from the previous yr • Debt service from the previous year • State aid guarantees per member • KASD reduced its aidable expenditures from 2010-11 to 2011-12 by $3.7 million which produced less equalized aid

  25. Equalization Aid History Equalization aid has fallen to its lowest level since the 2005-2006 school year when KASD received $22,731,637 from the State of Wisconsin.

  26. Property Valuation • Equalized Valuation • The two commonly-used methods of valuing property in Wisconsin are "assessed" and "equalized." • Assessed valuation is property value as determined by the local municipal assessor on January 1 in any given year. • Equalized valuation results when the Department of Revenue (DOR) applies an adjustment factor to the assessed value. The adjustment factor incorporates, among other elements, actual property sales in the municipality during the past year and is meant to ensure each type of property has comparable value regardless of local assessment practices. • Most state computations use equalized value, otherwise known as "fair market" value. Fair market value can be further defined as the value that would be agreed upon between a willing buyer and a willing seller in an "arm's length" transaction where neither is required to act.

  27. Property Valuation • Equalized Valuation • Why does property value matter? • Equalized valuation determines the “mill rate” or tax levy rate per $1,000 of property value charged by a public school district • The higher the equalized valuation the lower the mill rate will be • For example, a $15 million tax levy on a district with equalized value of $1.5 billion yields $10 per $1,000 of value; the same levy on a district valued at $2.0 billion produces a mill rate of $7.50 per $1,000 • In the above scenario a $100,000 property will produce a tax levy of $750 for the district valued at $2.0 billion while the levy would be $1,000 in the district with $1.5 billion in equalized value

  28. Property Valuation • Equalized Valuation • Why does property value matter? • Equalized valuation also plays a role in what the district will receive for equalized aid • The higher the property value the less the district will receive for equalized aid • DPI created the formula trying to equalize state aid as property rich districts are forced to pay more in property tax as less state aid is received

  29. Property Valuation • Equalized Valuation • KASD realized its first decline in equalized valuation in two decades for 2012-13 as property value plus exempt computer value fell by 2.74% • In all KASD saw a decline of $50 million from its $1.84 billion value in 2011-12

  30. Debt Service • Debt service – KASD • Referendum approved debt • Kaukauna High School is the only debt being carried by the District that was approved through referendum • The current referendum approved debt load is $11.7 million • The final payment on Kaukauna High School is scheduled to be made in March, 2017 • Debt service payment schedule • 2012-13 $2,170,000 principal $401,750 interest • 2013-14 $2,245,000 principal $336,650 interest • 2014-15 $2,330,000 principal $269,300 interest • 2015-16 $2,435,000 principal $199,400 interest • 2016-17 $2,550,000 principal $102,000 interest

  31. Debt Service • Debt service – KASD • Non-referendum approved debt • Debt service approved by the Board of Education falls within the revenue limit and thus takes away from possible operating revenues that can be used for daily operations • Non-referendum approved debt for KASD currently is in two areas – payoff of debt owed to the Wisconsin Retirement System and a Qualified School Construction Bond (zero interest loan) • Both non-referendum debt issues have a maturity date during the 2019-2020 school year • The Wisconsin Retirement System loan payoff principal is currently $2,080,000 while the QSCB principal is $400,000

  32. Debt Service • Debt service – KASD • Non-referendum approved debt • Payment schedules • As shown in the black column, non-referendum debt service depletes the amount of money available for day-to-day operations as the figures shown fall under the revenue limit

  33. State Imposed Revenue Limit • Revenue Limit • 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 raise through state general aid and property tax for the General, Non-Referendum Debt (authorized after August 12, 1993), and Capital Expansion Funds, also referred to as Funds 10, 38, and 41 respectively. (Prior to 01-02, the Community Service Fund levy was included in the revenue limit.) • The maximum limit is based upon enrollment changes, the Consumer Price Index, and each district's prior year controlled revenue. Upon application and approval by the Department, a district may increase its maximum limit by an additional amount for specific exemptions. A district then determines the maximum allowable levy for Funds 10, 38, and 41 by subtracting the Department-provided October 15 General Aid Certification and Poverty Aid estimates from the district's maximum revenue limit.

  34. State Imposed Revenue Limit • Revenue Limit • Key factors in the revenue limit formula • Prior year limit revenues • Equalized aid, computer aid, Fund 10 & 38 tax levy • Three year rolling pupil membership count • Per pupil base revenue is determined by dividing total limited revenues by three year rolling base membership count • Allowed per pupil increase • Set by State of Wisconsin - $50.00 for 2012-13 • Per pupil increase used to be tied to the CPI but that has gone away

  35. State Imposed Revenue Limit The Kaukauna Area School District’s 2012-13 maximum allowable tax levy less referendum approved debt service is $15,561,910. KASD may tax any amount necessary to maintain operations up to the maximum allowable amount. Any tax levy amount under the maximum allowable could be added to the 2013-14 tax levy.

  36. Revenue Limit History The 2012-13 revenue limit shows a potential $1 million increase over 2011-12. The only year the revenue limit fell over the past decade was 2011-12. The 2012-13 revenue maximum is still less than that of 2009-10 and 2010-11.

  37. In summary… • 2012-13 revenue generation • KASD has the potential to set a tax levy of up to $18,117,208 for 2012-13. The 2011-12 tax levy was $16,210,408. • The maximum increase in taxes, $1,906,800, equates to 15.24% • If KASD taxed to the maximum allowable under state law the school portion of property taxes on a $100,000 property would increase from $879 in 2011-12 to $1,013 in 2012-13 • The main reasons for the potential spike in the tax levy, as outlined, included a drop in equalized property values, a drop in equalized aid, and an increase in student population

  38. 2012-13 Tax Levy • Board of Education Dilemma • The Board of Education must set the 2012-13 tax levy at a rate that allows KASD to educate its students in the best possible manner while being fiscally responsible to all stakeholders and taxpayers in the District • The operating budget shown on the next slides is balanced for 2012-13 and includes a tax levy increase over 2011-12 but the increase does not meet the maximum allowable by state statute • The 2012-13 operating budget as presented includes a tax levy set at $9.33 per $1,000 of value, an increase of $0.54 per $1,000 of property value

  39. 2012-13 Operating Budget • 2012-13 Operating Revenues • Operating revenues are down 2.87% from 2011-12 • Overall revenues are down almost $3 million from 2010-11 • Federal aid down $800,000 from last year due to loss of ARRA funding; state aids down $1.2 million while local funding is up $400,000

  40. 2012-13 Operating Budget • 2012-13 Operating Expenditures • Operating expenditures are up $2.3 million for 2012-13 over 2011-12 (3.23%) • Salaries have increased by 5.13% as the District added nearly 12 staff positions since 2011-12; benefits remained unchanged due to handbook provisions

  41. 2012-13 Operating Budget • 2012-13 Operating Budget • The 2012-13 operating budget for KASD (Funds 10 & 27) is balanced as presented • Nothing will be added to the operating fund balance for 2012-13 after a $2.6 million addition in 2011-12

  42. 2012-13 Debt Service Budget • Fund 38 • Non-referendum approved debt • 2012-13 tax levy set at $346,312.00 • 2012-13 expenditures set at $351,191.50 • Debt service revenue and expense do not match yearly based on taxing in a calendar year and paying in a fiscal year • Fund 39 • Referendum approved debt • 2012-13 tax levy set at $2,518,499.85 • 2012-13 debt service payment is $2,571,750.00 • Debt service revenue and expense do not match yearly based on taxing in a calendar year and paying in a fiscal year

  43. 2012-13 Food Service Budget • Revenues • Total revenues projected at $1,446,177.53 for 2012-13 • $817,788 from food service sales • $609,736 from federal food service aid • $18,653 from state food service aid • 2011-12 total food service revenues were $1,375,535 • Budget has been increased due to the increase in prices from last year to this year • Fund balance as of 6/30/12 in Fund 50 was $61,614.12 • The fund balance will be wiped out at the end of the fiscal year • Expenditures • Total expenditures for 2012-13 projected at $1,507,873.20 • Salaries (internal) = $47,859.85 • Benefits = $17,933.31 • Purchased services = $792,326.04 • Non-capital equip = $571,754.00 • Capital objects = $55,000.00 • Other objects = $23,000.00 • Expenditures in 2011-12 were $1,443,704 • Additional 2012-13 costs are for equipment including new lunch tables at Haen, oven at KHS, and mixer at River View

  44. 2012-13 Post Retirement Benefit Account Budget • Fund 73 – Other Post Retirement Benefits • KASD has established a post retirement benefit account that allows for deposits to be made and interest to be earned to offset future costs • KASD has partnered with CESA 6 and other area school districts to pool funds and create the best possible tool for gaining interest on investments • KASD started 2011-12 with $1,047,890 in Fund 73 and ended the year at $1,823,710 • Approximately $30,000 of the fund balance gain was due to investments • KASD has a projected unfunded liability of $14.9 million which means the District has funded 12.23% as of 6/30/12

  45. 2012-13 Post Retirement Benefit Account Budget • Fund 73 – Other Post Retirement Benefits • 2012-13 Budget • Projected 2012-13 expenditures are $1,196,000, down from $1,228,000 spend in 2011-12 • Figure is based on number of retirees still on the District’s insurance plan based on the benefit received • A very limited pool of retirees were added following 2011-12 and several members had exhausted their benefit thus the relative flat nature of the budget despite projecting a 10% increase in health insurance • Revenues match expenditures in the budget thus there will be no deposit to the OPEB account over and above the pay-as-you-go costs

  46. 2012-13 Community Service Fund Budget • Fund 80 Community Service Fund • 120.13(19) Community Programs and Services - "A school board may establish and maintain community education, training, recreational, cultural or athletic programs and services, outside the 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. Costs associated with such programs and services shall not be included in the school district's shared cost under 121.07(6)."

  47. 2012-13 Community Service Fund Budget • Fund 80 Community Service Fund • KASD accounts for the following in Fund 80 • 50% of the Administrative Assistant to the Activities Director • 75% of the police liaison fees charged to KASD by the City of Kaukauna • The projected tax levy for 2012-13 includes $79,373 in Fund 80 to cover the costs associated with the above positions • KASD has not levied in Fund 80 for two years based on fund balance in the account and the use of that money to pay the cost of the positions shown above • The $79,373 levy equates to approximately $0.01 per $1,000 of property value so a $1.00 tax on a $100,000 property

  48. 2012-13 KASD Budget • 2012-13 KASD Budget as Presented: • Total Revenue $44,911,423.33 • Total Expenditures $45,482,186.97 • Net Gain/Loss -$570,763.64 • As presented the majority of the 2012-13 budget loss is in Fund 45, Qualified School Construction Bonds, as the District must spend the full $490,000 remaining in the account in 2012-13 but will gain no revenue in the fund • Overall the District is showing losses in food service and community service as those two areas had fund balance built that will be spent down during the current year

  49. Tax Levy Options 2012-13 • KASD tax levy options 2012-13 • While the possibilities of the tax levy are endless listed on the next slide are several tax levy options for 2012-13 and the implications of each • Truly the only portion of the tax levy that must be put in place is that of referendum approved debt service • Operating the District without a tax levy outside of debt service is not feasibly possible based on operating expenditures and obligations • Over taxation on top of the funds generated by the revenue limit is not possible without a referendum; taxing less than the revenue limit states is possible • Funds not taxed for in the current year can be brought back as adjustments in the following year and may be added to that year’s tax levy

More Related