2014-15 budget presentation - Kaukauna Area School District

Report
KAUKAUNA AREA
SCHOOL DISTRICT
2014-2015 BUDGET PRESENTATION
Monday,
October
13, 2014
5:30 pm
Bob
Schafer
Financial
Officer,
KASD
2014-2015 BUDGET HEARING OVERVIEW
• The procedures which common, union high, and unified school districts should
follow in formulating a budget, holding a public hearing, and adopting a
budget are set forth in s. 65.90, Wis. Stats. The steps involved in these required
procedures are summarized as follows.
•
•
•
•
The staff and school board create a proposed budget that identifies expected revenues,
expenditures, and fund balances for the budgeted year in addition to the two fiscal years
preceding the budgeted fiscal year. Budget detail is based upon the Wisconsin Uniform Financial
Reporting Requirements (WUFAR) hierarchy of accounts.
A class 1 notice (one publication) is published which contains a summary of the proposed budget
described above, notice of where the detailed budget may be examined, and notice of the time
and place of the public hearing. Common and union high school districts must hold the budget
hearing at the time and place of the annual meeting.
The public hearing is held, at which time, residents of the district have an opportunity to comment
on the proposed budget.
The school board shall adopt an original budget at a school board meeting scheduled after the
public hearing and no later than the meeting in which the school board sets the annual tax levy
amount.
• For KASD the official 2014-2015 budget hearing and subsequent tax levy will
be set at the October 27, 2014, Board of Education meeting.
FUND 10 – GENERAL OPERATING FUND
BUDGET BASICS
• Fund 10
• Fund 10 encompasses all general education expenditures
for a Wisconsin public school district. Per DPI, the general
fund is used to account for all financial transactions relating
to the district’s current operations, except for those required
to be accounted for in other funds.
• Fund 10 will, in the end, cover any budget shortfalls that may
develop in other funds such as special education (Fund 27) or
food service (fund 50).
• Fund 10 will make up the District’s Fund Balance at the end of
each fiscal year. Other funds may or may not carry a fund
balance but the focus of a district’s carryover money is based in
Fund 10.
FUND 10 – GENERAL OPERATING FUND
REVENUE HISTORY AND PROJECTION
• Fund 10 Revenue
• Below is summary of District revenues in Fund 10 over the
past seven years and the expected revenue for 2014-2015
• Figures for the 2014-2015 budget include a tax to the maximum
allowable amount under the revenue limit with NO use of any of
the prior year tax levy carryover
FUND 10 – GENERAL OPERATING FUND
2014-2015 PROJECTED REVENUE
• General operating revenue by source
• DPI utilizes source codes to standardize among school
districts where funds are received from. Minimum source
codes are as follows:
•
•
•
•
•
•
•
100
200
300
500
600
700
900
Operating transfer in (from one fund to another fund)
Revenue from local sources (property tax)
Revenue from interdistrict sources (other school districts)
Revenue from intermediate sources (CESAs)
Revenue from state sources (equalized aid, etc)
Revenue from federal sources (Title funds, grants)
Other revenues (prior year revenues, refunds, adjustments)
FUND 10 – GENERAL OPERATING FUND
2014-2015 PROJECTED REVENUE
KASD - FUND 10 REVENUE BY SOURCE
2014-15
2013-14
2012-13
2011-12
2010-11
Budget
FY Activity
FY Activity
FY Activity
FY Activity
100 Operating transfer in
$
34,628.00 0.08%
200 Local sources
$ 14,477,687.00 34.81%
$ 14,250,840.68 34.27%
$ 14,101,946.83 35.41%
$ 13,694,973.63 33.68%
$ 12,943,674.20 30.60%
300 Intermediate sources
$
663,766.00 1.60%
$
594,790.04 1.43%
$
513,498.00 1.29%
$
377,008.16 0.93%
$
400 Other revenues
$
25,000.00 0.06%
$
29,673.38 0.07%
$
25,511.90 0.06%
$
25,439.71 0.06%
600 State sources
$ 27,057,161.00 65.06%
$ 25,957,762.55 62.42%
$ 23,959,824.94 60.16%
$ 24,819,435.49 61.04%
$ 27,608,550.98 65.26%
700 Federal sources
$
430,505.00 1.04%
$
601,688.07 1.45%
$
876,060.27 2.20%
$ 1,633,237.06 4.02%
$ 1,127,260.25 2.66%
0.00%
$
2,100.00 0.01%
$
92,996.30 0.22%
$
41,979.22 0.10%
$
150,136.73 0.36%
$
349,469.44 0.88%
$
106,792.02 0.26%
$
78,299.94 0.19%
800 Other fed sources
900 Other revenues
Total Revenue
0.00%
$ 42,696,098.22
0.00%
$ 41,584,891.45
2014-2015 Fund 10 revenues are
budgeted at $42.7 million or $1.1
million more than 2013-14 actuals.
State revenue sources account for
65% of the overall Fund 10 budget
while federal funds are 35% of the
$42.7 million
$ 39,826,311.38
$ 40,658,986.07
419,761.88 0.99%
0.00%
$ 42,305,171.55
FUND 10 – GENERAL OPERATING FUND
2014-2015 MAJOR REVENUE CHANGES
• Significant changes in Fund 10 revenue from 201314 to 2014-15 include:
• Property tax levy increase of $168,114
• State equalization aid increase of $773,747
• Workers’ compensation insurance dividend adjusted to new
guarantees which cut the revenue by $10,000
• Per pupil aid from State of Wisconsin budgeted at $657,900
for 2014-15 – up from $332,000 in 2013-14
• Revenues in Fund 10 show an increase of 2.67%
from 2013-14 actuals to 2014-15 projected
FUND 10 – GENERAL OPERATING FUND
GENERAL OPERATING EXPENDITURES
• Fund 10 Expenditures
• The 2014-2015 general education operating expenditures
for KASD are budgeted at $37,973,541, up from $37,382,243
of actual 2013-2014 costs. The budget to actual difference
is $591,298 or 1.58% increase.
• 2013-14 expenditures included a minor portion paid to the
completion of the Park School project and a major expenditure
for the Honeywell Energy project ($950,000)
• The Fund 10 operating budget also includes a $4.72 million
transfer to Fund 27, special education, to balance that
account.
• The 2013-2014 actual special education transfer from Fund 10
was $4,664,000. Given current revenue projections it will cost
Fund 10 and extra $58,556 to balance Fund 27.
FUND 10 – GENERAL OPERATING FUND
EXPENDITURE HISTORY
FUND 10 - GENERAL EDUCATION OPERATING EXPENDITURES
Expense Object
100 SALARIES
200 EMPLOYEE BENEFITS
300 PURCHASED SERVICES
400 NON-CAPITAL OBJECTS
500 CAPITAL OBJECTS
600 DEBT RETIREMENT
700 INSURANCE & JUDGMENTS
900 OTHER OBJECTS
GENERAL OPERATIONS
2014-15
Budget
2013-14
FY Activity
% of Fund
10 budget
$ 18,376,158.79 48.39%
$ 17,697,461.71
$ 6,738,551.39 17.75%
$ 7,000,079.81
$ 10,703,409.54 28.19%
$ 10,309,539.57
$ 1,649,711.64 4.34%
$ 1,862,777.66
$
180,820.44 0.48%
0.00%
$ 252,085.00 0.66%
$
72,805.14 0.19%
$ 37,973,541.94
$
$
202,794.55
$
233,899.17
$
75,691.41
-
$ 37,382,243.88
2012-13
10 budget FY Activity
47.34% $ 16,612,066.56
18.73% $ 6,239,411.23
27.58% $ 9,964,232.87
4.98% $ 2,552,479.00
0.54% $ 688,681.78
0.00%
0.63% $ 221,893.69
0.20% $ 61,238.33
$ 36,340,003.46
% of Fund
2011-12
10 budget FY Activity
45.71% $ 16,208,675.51
17.17% $ 7,039,165.31
27.42% $ 7,792,146.50
7.02% $ 1,649,508.86
1.90% $ 293,532.60
0.00% $ 318,199.14
0.61% $ 322,541.90
0.17% $ 108,223.80
$ 33,731,993.62
% of Fund
2010-11
10 budget FY Activity
48.05% $ 17,346,129.18
20.87% $ 9,078,556.34
23.10% $ 8,176,160.02
4.89% $ 1,802,952.73
0.87% $ 295,504.95
0.94% $ 109,696.69
0.96% $ 281,927.20
0.32% $ 124,409.05
$ 37,215,336.16
% of Fund
2009-10
10 budget FY Activity
46.61% $ 17,606,901.57
24.39% $ 9,178,649.12
21.97% $ 7,755,663.92
4.84% $ 1,595,747.47
0.79% $ 708,809.76
0.29% $ 169,110.42
0.76% $ 316,359.59
0.33% $ 90,320.20
$ 37,421,562.05
% of Fund
% of Fund
10 budget
47.05%
24.53%
20.73%
4.26%
1.89%
0.45%
0.85%
0.24%
• The 2014-2015 Fund 10 expenditure budget is up $591,298 over the
2013-2014 costs.
• Salary and benefit costs budgeted for 2014-2015 account for 66.14% of the Fund 10
budget which is up from 66.07% from the previous year
• Open enrollment out students are accounted for under purchased services – note the
high percentage of the budget shown in this area
FUND 10 – GENERAL OPERATING FUND
2014-2015 EXPENDITURE BY OBJECT (%)
FUND 10 – GENERAL OPERATING FUND
2014-2015 MAJOR EXPENDITURE CHANGES
• Significant changes in Fund 10 expenditures from 2013-2014 to 20142015 include:
• Salaries have increased $694,055 from 2013-2014 actual to 2014-2015
budget (3.92%)
• +$544,000
• +$ 22,000
• +$ 70,000
Additional teaching staff
ELL staffing
Teaching leadership positions
• Benefits associated with payroll have decreased by $267,000 (-3.83%)
•
•
•
•
-$558,000
+$ 52,000
+$ 93,000
+$ 50,000
Post retirement benefit decrease paid to Fund 73
Wisconsin Retirement System
FICA and Medicare
Health insurance cost
• Purchased services have increased $395,000 over 2013-2014 (3.84%)
• +$1,085,000
• -$625,000
• -$116,000
Open enrollment out aid transfer cost
Maintenance costs (Honeywell project)
Projected energy cost savings
FUND 10 – GENERAL OPERATING FUND
2014-2015 MAJOR EXPENDITURE CHANGES
• Significant changes in Fund 10 expenditures from 2013-2014 to 20142015 include:
• Non-capital equipment budget has been decreased by $215,000 (-11.5%)
• -$380,000
• +$ 8,0000
Planned textbook expenditure reduction
Supplies and materials cost increase
• Capital equipment budget is down $21,000 (-10.5%)
• Insurance and judgments show an increase of $18,500 (7.78%)
• +$18,000
Work comp insurance cost up
• Special education transfer from Fund 10 to fund 27 has increased $58,000 or
1.18% over previous year
• Must be done to balance the 2014-2015 SPED budget
FUND 27 – SPECIAL EDUCATION
EXPENDITURE REVIEW
• Historical perspective
• KASD spent $7,132,458
on special education
in 2013-2014
• The projected
expenditure for 20142015 in Fund 27 is
$7,269,748 or $137,290
more than the actual
2013-2014 figure
(1.92% increase)
• A historical
perspective of special
education funding is
shown to the right:
FUND 27 – SPECIAL EDUCATION
OPERATING REVENUE
• Special education revenue
• Special education revenue is from three main sources –
state aid based on the previous year expenditures, federal
aid, and a transfer from Fund 10 to cover costs
• In general both external areas have flat-lined the amount of
money school districts are receiving over the past decade
• A summary of KASD’s special education revenues over the past
four years is shown below plus the projected 2014-2015 budget
KASD - FUND 27 REVENUE BY SOURCE
2014-15
2013-14
Budget
2012-13
FY Activity
2011-12
FY Activity
2010-11
FY Activity
FY Activity
100 Operating transfer in
$ 4,722,556.28 64.96%
$ 4,664,976.62 65.40%
$ 4,543,724.20 65.26%
$ 4,357,633.77 61.13%
$ 4,328,446.13 60.83%
200 Local sources
$
0.00%
$
0.00%
$
0.00%
$
0.00%
$
300 Interdistrict sources
$
70,300.00 0.97%
$
18,467.19 0.26%
$
17,713.28 0.25%
$
92,383.93 1.30%
$
62,374.88 0.88%
500 Intermediate sources
$
3,500.00 0.05%
$
3,555.78 0.05%
$
39,258.12 0.56%
$
$
8,634.23 0.12%
600 State sources
$ 1,564,477.94 21.52%
$ 1,428,399.00 20.03%
$ 1,357,642.00 19.50%
$ 1,454,235.00 20.40%
$ 1,447,929.00 20.35%
700 Federal sources
$
$ 1,017,059.74 14.26%
$ 1,003,891.74 14.42%
-
908,914.00 12.50%
800 Other fed sources
900 Other revenues
Total Revenue
-
0.00%
$
-
$ 7,269,748.22
0.00%
-
0.00%
$
-
$ 7,132,458.33
0.00%
$
-
$ 6,962,229.34
-
0.00%
-
0.00%
$ 1,185,334.46 16.63%
$ 1,268,718.63 17.83%
0.00%
$
0.00%
$
-
0.00%
0.00%
$
38,762.74 0.54%
$
-
0.00%
-
$ 7,128,349.90
$ 7,116,102.87
FUND 27 – SPECIAL EDUCATION
2014-2015 OPERATING REVENUE
• Revenue summary
• KASD will fund 65% of total special education costs for 2014-2015 from the Fund 10
budget
•
The transfer amount has grown dramatically in the past five year – nearly 9% over that time
• State sources will pay 21.53% of the special education costs for 2014-2015, federal
revenues will be 12.5% of the total budget
•
Both areas have decreased steadily which forces the higher transfer into Fund 27 from
Fund 10
FUND 27 – SPECIAL EDUCATION
OPERATING EXPENSES
FUND 27 - SPECIAL EDUCATION OPERATING EXPENDITURES
Expense Object
100 SALARIES
200 EMPLOYEE BENEFITS
300 PURCHASED SERVICES
400 NON-CAPITAL OBJECTS
500 CAPITAL OBJECTS
900 OTHER OBJECTS
GENERAL OPERATIONS
$
$
$
$
$
$
$
2014-15
Budget
4,169,260.74
1,512,713.81
1,426,422.61
124,980.16
25,000.00
9,042.29
7,267,419.61
% of Fund
27 budget
57.37%
20.82%
19.63%
1.72%
0.34%
0.12%
2013-14
FY Activity
$ 3,903,604.03
$ 1,483,506.83
$ 1,553,548.89
$ 156,233.58
$ 15,000.00
$ 20,565.00
$ 7,132,458.33
% of Fund
27 budget
54.73%
20.80%
21.78%
2.19%
0.21%
0.29%
2012-13
FY Activity
$ 3,551,829.38
$ 1,355,174.02
$ 1,502,402.47
$ 423,847.79
$ 90,845.42
$ 38,130.26
$ 6,962,229.34
% of Fund
27 budget
51.02%
19.46%
21.58%
6.09%
1.30%
0.55%
• Special education expenditures
budgeted at $7.26 million for 20142015
•
•
•
78% of Fund 27 costs are for salaries and
benefits
Purchased services include CESA contracted
costs
Just 2% of the total operating budget in
special education is used for supplies and
materials
2011-12
FY Activity
$ 3,576,944.96
$ 1,394,053.26
$ 1,787,763.98
$ 249,093.41
$ 77,661.44
$ 42,832.85
$ 7,128,349.90
% of Fund
27 budget
50.18%
19.56%
25.08%
3.49%
1.09%
0.60%
2010-11
FY Activity
$ 3,827,414.05
$ 1,764,589.27
$ 1,161,199.66
$ 161,407.51
$ 156,609.16
$ 44,883.22
$ 7,116,102.87
% of Fund
27 budget
53.79%
24.80%
16.32%
2.27%
2.20%
0.63%
2009-10
FY Activity
$ 3,736,641.53
$ 1,525,775.81
$ 1,093,189.97
$ 94,232.44
$ 101,071.36
$ 93,135.18
$ 6,644,046.29
% of Fund
27 budget
56.24%
22.96%
16.45%
1.42%
1.52%
1.40%
2008-09
FY Activity
$ 3,825,309.30
$ 1,481,343.05
$ 1,005,553.24
$ 122,693.22
$ 49,133.45
$ 119,123.74
$ 6,603,156.00
% of Fund
27 budget
57.93%
22.43%
15.23%
1.86%
0.74%
1.80%
FUND 38 – NON-REFERENDUM
APPROVED DEBT SERVICE
• Fund 38 Debt Service
• Non-referendum debt service is generated by Board of Education
action and accounted for in Fund 38
• Fund 38 debt service payments are part of the District’s revenue limit
calculation and directly affect the operating budget
• Any reduction in Fund 38 debt service will immediately impact the funds
available to spend on general operations
• A historical and futuristic perspective of Fund 38 debt service is
shown below
FUND 38 – NON-REFERENDUM
APPROVED DEBT SERVICE
• Summary of Fund 38 Debt Service
• Wisconsin Retirement System
• Issued May 1, 2007, to payoff debt owed to WRS – $2,740,000
• Maturity date is March, 2020
• Principal owed $1,680,000, principal and interest owed $2,012,422
• Qualified School Construction Bond
• Issued December 9, 2009, to pay for energy efficiency projects in
the District - $500,000
• Maturity date is March, 2020
• Principal owed is $300,000 – no interest bond from federal gov
• Energy Efficiency Exemption
• Issued July 1, 2013, to pay for energy efficiency projects through
Honeywell ESG - $2,000,000
• Maturity date is March, 2018
• Principal owed is $2,000,000, principal and interest owed is $2,090,695
FUND 38 – DEBT SERVICE BUDGET
• Fund 38 Budget
• Expenditures
• 2014-2015 expenditures in Fund 38, will be $529,768
• Payment is a combination of the three debt service issues
• Payment is set by the debt service schedules for each issue
• 2014-2015 revenues for Fund 38, which cover payments made in
March, 2014, as well as September, 2014, will be $482,985
• The increase in revenue is due to the addition of the energy
efficiency project bond issue that begins its repayment schedule
• Energy cost savings are scheduled to offset the additional debt
service fees incurred
• A carry-over of $140,925.75 will be on the books as of June 30, 2015.
Those dollars will be used to make the debt payment in September,
2015
FUND 38 – DEBT SERVICE BUDGET
• Kaukauna High School Facility Project
• Debt service
• Should the Board of Education choose to move forward with any
part or all of the proposed Kaukauna High School redesign project
the debt service payments will be made out of Fund 38
• All debt incurred by the project would be under the revenue limit
and not add any additional dollars to the tax levy
• Same can be said for the Honeywell ESG energy project, borrowing to
pay off the Wisconsin Retirement System debt, and the zero interest loan
secured to pay for the Haen School windows
• All principal and interest payments under Fund 38 have no direct
effect on the tax levy – the only way the tax levy will be
decreased should the project not be done would be to under
levy and hold the potential under levy amount in abeyance for a
future over levy and use of funds at that time
FUND 39 – REFERENDUM APPROVED
DEBT SERVICE
• Kaukauna High School Debt Service
• Total debt service outstanding (principal plus interest) on
Kaukauna High School, which is the only referendum approved
debt on the books for the District, is $7,885,700
• Principal only debt service is $7,315,000
• The final debt service payment will take place in March, 2017
• The final year in which the referendum approved debt service will have
an impact on the tax levy is 2016-2017
• $1.6 million of the energy efficiency project borrowing will be due during
the 2017-2018 fiscal year. This figure, combined with the retirement of
KHS debt, will produce a $1.0 million tax levy savings in 2017-2018 or a
drop of $0.60 per $1,000 of value on the mill rate
• Without major change and debt retirement KASD will see a drop in its
mill rate from $9.41 per $1,000 value to $7.90 per $1,000 value in the
next five years
• A property paying $1,872 in school tax presently ($200,000 value) would then
pay $1,580
FUND 39 – REFERENDUM APPROVED
DEBT SERVICE PAYMENT SCHEDULE
FUND 50 – FOOD SERVICE
• Fund Balance Perspective
• Food Service fought through a second consecutive trying
year
• Mandated changes to products that could be used were
implemented by the Federal Government at the start of the
2012-2013 school year. Mandates were modified in
January,2013, to allow for more “user-friendly” products to return
to the menu which created more sales
• Food service supply costs continued to escalate and
transportation also remained high
• The fund balance in food service was set-up to purchase
equipment, which was accomplished during 2013-2014, but
ended at its lowest point over the past decade - $3,950
FUND 50 – FOOD SERVICE
• Fund Balance Perspective
• Fund 50 can carry a fund balance at the end of each fiscal
year but a school district must have a plan for use of the
fund balance in the following year
• KASD has made large gains in the past six years on equipment
purchased from the food service fund balance
•
•
•
•
•
•
•
•
Replaced lunch tables at ALL elementary school sites
New walk-in cooler at River View
New dishwasher at River View
New oven at KHS, Park School (2013)
New mixer and stand at KHS
Upgraded small equipment/cooking utensils/trays at various sites
Upgraded computers and technology at various sites
New serving stations at River View and Kaukauna High School
FUND 50 – FOOD SERVICE
• Fund Balance History
• The fund balance in food service has been strong over the
past four years which has allowed the District to increase
spending on needed equipment
•
•
•
•
•
•
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
$4,513
$52,174
$129,783
$61,614
$16,792
$ 3,950
• The trend over the past two years was anticipated based
on purchases but the 2013-2014 ending figure was less than
desired due to decreased sales and increased costs
FUND 50 – FOOD SERVICE
• 2013-2014 Budget
• Balanced budget is in place for 2014-2015
• Expenditures, revenues set at $1,251,192
• Maintenance department salaries and benefits account for $42,597of
the total food service expenditures. The figure is based on 5% of the
salary and benefit costs of each individual employed by the District in
the maintenance department
• The reasoning behind this is to move the amount out from under the
revenue limit formula and “free” up funds in the general operating
budget
• Building Services accounts for $35,598 of the total food service expense
budget. This figure is based on actual hours billed by BSG for work done
in the kitchen/cafeteria of each building
• Combined cost for maintenance and cleaning billed to Fund 50 $78,000 – does impact the fund balance directly as those costs must be
covered by sales
• Fund balance projected to remain flat at $3,950 on June 30, 2015
FUND 72 - SCHOLARSHIPS
• Fund 72
• KASD holds approximately $170,000 in Fund 72 from which
scholarships are awarded on an annual basis
• $127 was earned in interest during the 2013-2014 school year in
Fund 72
• $3,800 was paid out to scholarship recipients at the conclusion
of the 2013-2014 school year
• 13 separate scholarship accounts make up Fund 72
• $138,000 of the $170,000 is located in three of the 13 accounts
• Fund 72 does not account for all scholarship funds that are
paid out on an annual basis only for those that have had
money turned over to KASD to be managed
FUND 73 – EMPLOYEE BENEFIT TRUST
FUND (OPEB)
• Wisconsin Act 99
• Wisconsin State Statute enacted in 2006 allows school
districts to invest funds for the sake of offsetting costs for
future post employment benefits (health insurance, dental
insurance, and other contractual agreements)
• Legislation requires reporting, on an annual basis, the
following information:
•
•
•
•
Amount held in the trust account or accounts
Investment return earned during the last fiscal year
Total disbursements made during the previous fiscal year
Name of the investment manager if applicable
FUND 73 - REVIEW OF 2013-2014
• Trust balance
• KASD held $2,758,316.16 in its Fund 73 Trust Account as of June 30, 2014
• The projected post employment benefit liability of the Kaukauna Area School
District is $8,124,000 based on the latest actuarial study
• KASD has 34.0% of the unfunded liability covered
• KASD earned $14,351.92 in interest on investments held in Fund 73
during the 2013-2014 fiscal year
• KASD earned $78,051 on investments in Fund 73 during fiscal 2013-2014
• KASD paid $815,715 for post employment health, dental, life, and other
retiree benefits during 2013-2014
• Basically this figure is the pay-as-you-go amount for retired employees and
benefits owed to them based on past contracts
• The amount listed comes directly out of the District’s operating budget and is
under the umbrella of the revenue limit
• KASD transferred $40,785 more to Fund 73 from Fund 10 which essentially was
available due to unspent Fund 10 dollars
• The ultimate goal of Fund 73 will see investment earnings offset the cost of the
post employment benefit freeing revenue limit funds to be used in other areas
FUND 73 – EMPLOYEE BENEFIT TRUST
FUND 2013-2014
• Trust Fund Advisor
• The Kaukauna Area School District will continue to utilize the services of
CESA 6 and their affiliates for its Fund 73 Employee Benefit Trust
investments
• KASD employees and former employees with a vested interest in its
Employee Benefit Trust Fund program can, at any time, request
documentation on the partnership between KASD and CESA 6 as well as any
other pertinent information regarding investment accounts
• Budget
• KASD expenditures for post retirement benefits is budgeted at $841,000
for 2014-2015
• A transfer from Fund 10, General Operations, and Fund 27, Special
Education, to Fund 73 will take place cover OPEB costs
• KASD revenues for investment income purposes has been set at
$13,000 for 2014-2015; return on investment at $25,000
• Post retirement benefit costs directly affect the Fund 10 operating budget of
a school district
FUND 80 – COMMUNITY SERVICE FUND
• Wisconsin Act 20
• Does not change the authority of school boards to establish
a Community Service Fund but it does limit the levy to an
amount less than or equal to the amount levied for the
2013-2014 school year in Fund 80
• KASD levied $79,373 in Fund 80 last year
• KASD utilized the levied funds to pay for police liaison services at
both River View School and Kaukauna High School as well as
50% of the administrative assistant salary and benefit cost in the
District Activities Department
• Other rule changes with Wisconsin Act 20 include:
• Districts have to report to DPI on how funds will be spent
• DPI has to publish all Fund 80 levy information on their website and
also send the information to the Joint Committee on Finance
• Districts must also report how funds will be spent on their website
FUND 80 - PROPOSED BUDGET
• 2014-2015 Revenue
• $79,373.11 tax levy requested to offset Fund 80 expenses
• Approximate mill rate impact is $0.05 per $1,000 of property value
•
•
A $150,000 property would pay an extra $7.50 due to Fund 80
A $300,000 property would pay an extra $15.00 due to Fund 80
• 2014-2015 Expenditures
• $24,843 toward the cost of the River View police liaison officer
• This is roughly 45% of the annual cost
• $17,644 toward the cost of the Kaukauna High School police liaison officer
• This is roughly 45% of the annual cost
• $36,886 to cover 50% of the administrative assistant cost in the District
Activities Office and other associated costs
• KASD, at one time, earmarked $15,000 to be levied in Fund 80 and donated those
funds to 1000 Islands for services provided. KASD now pays 1000 Islands directly out
of Fund 10 as the donation for services does not meet Fund 80 criteria.
• Fund balance
• The 2013-2014 ending fund balance was $0.00 in Fund 80
KASD – OVERALL OPERATING BUDGET
2014-2015
• Revenues vs. Expenditures
• Projected 2014-2015 revenues for KASD total $50,601,426.51
• Projected 2014-2015 expenditures are $50,601,426.51
• The District is operating with a balanced 2014-2015 budget. There
will be no need to utilize any of the $890,000 held in abeyance due
to an under tax levy in 2012-2013
2014-2015 PROPERTY TAX LEVY
KAUKAUNA AREA SCHOOL DISTRICT
• The Board of Education must set the FY 2014-2015
tax levy no later than November 1, 2014
• The tax levy must be delivered to the clerk of each
municipality no later than November 10, 2014
• School district’s levy taxes for general operations,
debt service, capital expansion, and community
service
• KASD will levy 2014-2015 taxes for all of the above less
capital expansion
• Property values are equalized to reflect market
value rather than local assessed value
2014-2015 PROPERTY TAX LEVY
KAUKAUNA AREA SCHOOL DISTRICT
• All Wisconsin public school districts use the same
formulas in the development of the tax levy
• Laws regarding maximum taxation by school districts were
set in 1993
• Key components to the tax levy
•
•
•
•
•
•
Pupil count
Equalized aid
Property valuation
Debt service
State imposed revenue limit
Prior year carryover of revenue limit funds
2014-2015 PROPERTY TAX LEVY
PUPIL COUNT
• Pupil count
KASD Enrollment History
Year
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
% Chg
3.71%
1.01%
3.92%
1.50%
1.62%
0.49%
-0.09%
1.88%
3.35%
2.28%
2.25%
0.79%
0.78%
5.04%
1.43%
0.34%
0.94%
1.05%
0.69%
1.46%
0.44%
1.20%
FTE
3069
3183
3215
3341
3391
3446
3463
3460
3525
3643
3726
3810
3840
3870
4065
4123
4137
4176
4220
4249
4311
4386
4439
• FTE is shown and includes
school year and summer
school combined
• District has shown a slow
but steady increase over
the past decade in FTE
• FTE does not dictate the
number of students being
educated by KASD due to
open enrollment
• FTE does include students
being educated by other
districts but counted by
KASD for aid purposes
2014-2015 PROPERTY TAX LEVY
EQUALIZATION AID
• Why the increase?
Kaukauna Area School District
Equalization Aid History
Fiscal Year Equalization Aid
+/- $
2002-2003
$ 20,339,750.00
2003-2004
$ 20,970,103.00 $
630,353.00
2004-2005
$ 21,314,517.00 $
344,414.00
2005-2006
$ 22,731,637.00 $ 1,417,120.00
2006-2007
$ 24,831,069.00 $ 2,099,432.00
2007-2008
$ 25,783,964.00 $
952,895.00
2008-2009
$ 23,918,199.00 $ (1,865,765.00)
2009-2010
$ 25,290,346.00 $ 1,372,147.00
2010-2011
$ 27,220,836.00 $ 1,930,490.00
2011-2012
$ 24,503,894.00 $ (2,716,942.00)
2012-2013
$ 23,650,940.00 $
(852,954.00)
2013-2014
$ 25,329,722.00 $ 1,678,782.00
2014-2015
$ 26,102,542.00 $
772,820.00
% Chg
3.10%
1.64%
6.65%
9.24%
3.84%
-7.24%
5.74%
7.63%
-9.98%
-3.48%
7.10%
3.05%
• Operating expenditures
outweighed operating
revenues by $450,000 for
2013-2014 which produces
an increase in state aid
• KASD will qualify for tertiary
(third level) aid for the
second time in the past 10
years thus adding aid
• The State of Wisconsin has
given more funds to schools
compared to the 2013-2014
school year
• As noted in the chart, major
changes in equalization aid
take place annually
2014-2015 PROPERTY TAX LEVY
PROPERTY VALUATION
• Equalized valuation is a factor in the tax levy in the
following ways:
• Equalized property value sets the final primary, secondary,
and tertiary equalization aid number
• Equalized property value is the denominator in figuring out
mill rate (amount taxed per $1,000 of equalized valuation)
• For example, KASD taxed $17,054,265 in FY 2013-2014 with and
equalized value of $1,836,671,689
• $17,054,265/1,836,671,689 = 0.00929 per $1.00 of property value or
$9.29 per $1,000
• A 1% increase in property valuation ($1,855,038,405) with the same
tax would yield a mill rate of $9.10 per $1,000
2014-2015 PROPERTY TAX LEVY
PROPERTY VALUATION
Kaukauna Area School District - Equalized Valuation 2014-2015
*****ESTIMATED VALUATION AS OF 10/1/2014*****
County
Taxation District
Equalized Value
% of District
Brown
T. Holland
$
66,291,466.41
3.50%
Calumet
C. Kaukauna
$
47,895.00
0.00%
Calumet
T. Harrison
$
72,685,574.57
3.84%
Calumet
T. Woodville
$
31,887,285.90
1.69%
Calumet
V. Harrison
$
76,177,817.38
4.03%
Calumet
V. Sherwood
$ 219,192,708.65
11.59%
Outagamie
C. Kaukauna
$ 900,085,688.00
47.58%
Outagamie
T. Buchanan
$ 111,483,212.87
5.89%
Outagamie
T. Kaukauna
$
48,360,260.27
2.56%
Outagamie
T. Vandenbroek
$ 138,238,978.00
7.31%
Outagamie
V. Combined Locks $
Outagamie
76,962,527.00
4.07%
V. Little Chute
$ 150,358,113.53
7.95%
Total Value
$ 1,891,771,527.58
100.00%
2014-2015 PROPERTY TAX LEVY
DEBT SERVICE
• Fund 38 (non-referendum debt)
• 2014-2015 tax levy is $482,985
• Wisconsin Retirement System = $319,530 (2020)
• Energy efficiency project = $113,455 (2018)
• Qualified school construction bond = $50,000 (2020)
• When debt service is paid off funds will be shifted to the general operating
budget for use as debt is part of the revenue limit
• Fund 39 (referendum debt)
• 2014-2015 tax levy is $2,564,350 or 14% of the total levy
• Tax levy is for Kaukauna High School; payoff of $9,560,000 principal is slated
for 2017
• Fund 39 debt service is a direct tax; upon final payment and without another
referendum KASD will reduce the tax levy by approximately $2.5 million per
year
• With the end in site regarding Fund 39 debt service the Board of Education
and District leadership will have to be mindful that a drop in the mill rate of
approximately $2.50/$1,000 will take place after KHS is paid for and the energy
efficiency project leaves the books (2018)
2014-2015 PROPERTY TAX LEVY
REVENUE LIMIT
• History
• 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, NonReferendum Debt (authorized after August 12, 1993), and Capital Expansion
Funds, also referred to as Funds 10, 38, and 41 respectively
• Key components to the revenue limit
• Prior year equalized aid, computer aid, and debt service build a
“base”
• Three year rolling pupil average
• Current year equalized property value
• Allowable per pupil increase
•
KASD utilizing base amount of $9,220.51 plus $75 per pupil addition for 2014-15
• Prior year carryover (non-taxed amount from previous year)
• Equalization aid
2014-2015 PROPERTY TAX LEVY
REVENUE LIMIT
• Major 2014-2015 revenue
limit changes
Kaukauna Area School District
Fiscal Year
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Revenue Limit History
Revenue Limit
+/- $
$ 28,187,010.00
$ 29,617,905.00 $ 1,430,895.00
$ 30,939,704.00 $ 1,321,799.00
$ 32,598,213.00 $ 1,658,509.00
$ 34,496,728.00 $ 1,898,515.00
$ 36,529,634.00 $ 2,032,906.00
$ 38,126,348.00 $ 1,596,714.00
$ 39,398,745.00 $ 1,272,397.00
$ 40,087,672.00 $
688,927.00
$ 38,236,467.00 $ (1,851,205.00)
$ 37,782,752.00 $
(453,715.00)
$ 39,266,500.00 $ 1,483,748.00
$ 40,695,743.00 $ 1,429,243.00
% Chg
5.08%
4.46%
5.36%
5.82%
5.89%
4.37%
3.34%
1.75%
-4.62%
-1.19%
3.93%
3.64%
• KASD, along with all other State
of Wisconsin schools, will
receive an extra $75 per
student over the base 20132014 amount
• KASD up 53 FTE from 2013-2014
to 2014-2015. Prior increase in
FTE was 76
• Estimated property value in the
District is up almost 3%
•
Final property values will be set in
mid October and released by DPI
• Figure shown does not include
untaxed dollars from 2012-2013
•
•
District has $890,000 “on the table”
that could be levied over and
above the revenue limit
Every $0.05 increase in the tax levy
will generate an additional
$100,000 of revenue limit funds to
spend
WISCONSIN DEPARTMENT OF PUBLIC INSTRUCTION
2014-2015
SCHOOL DISTRICT
GUARANTEES FOR JULY 1, 2014 ESTIMATE:
G1
PRIMARY
G6
SECONDARY
G11
TERTIARY
Kaukauna
Enter District Data in Shaded Fields Only
PART A: 2013-14 EQUALIZATION AID MEMBERSHIP
A1 3rd FRI SEPT 13 MEMBERSHIP*
4,353.00
(INCLUDE YOUTH CHALLENGE)
A2 2rd FRI JAN 14 MEMBERSHIP* (including Youth Challenge)
4,337.00
(INCLUDE YOUTH CHALLENGE)
A3
A4
A5
A6
A7
TOTAL (A1 + A2)
AVERAGE (A3/2) (ROUNDED)
SUMMER 13 FTE EQUIVALENT*
FOSTER GROUP HOME/PART-TIME FTE EQUIVALENT
AID MEMBERSHIP (A4 + A5 + A6)
* Ch 220 Resident Inter FTE co unts o nly 75%.
8,690.00
4,345.00
83
1
4,429
E5A
E6
E7
E8
E9
E10
E11
E12
F1
B1
B2
B3
B4
B5
B6
B7
B8
B9
PART B: 2013-14 GEN FUND DEDUCTIBLE RECEIPTS - BUDGET
TOTAL REVENUE & TRNFS IN
10R 000000 000
PROP TAX+COMP AID
10R 210+10R 691
GENERAL STATE AID (incl Hi Pov Aid)
10R 000000 620
NON-DEDUCTIBLE IMPACT AID
(EST BY DPI)
REORGANIZATION SETTLEMENT
10R 000000 850
LONG TERM OP BORROW, NOTE
10R 000000 873
LONG TERM OP BORROW, STF
10R 000000 874
REFUND OF DISBURSEMENT
10R 000000 972
DEDUCTIBLE RECEIPTS
(TO LINE C6)
C1
C2
C3
C4
C5
C6
C7
C8
PART C: 2013-14 NET COST OF GENERAL FUND - BUDGET
TOTAL EXPENDITURES
10E 000000 000
DEBT SERVICE TRANSFER
10E 411000 838 + 839
REORG SETTLEMENT
10E 491000 950
REFUND PRIOR YR REVENUE
10E 492000 972
GROSS COST GEN FUND
(C1 - C2 - C3 - C4)
DEDUCTIBLE RECEIPTS
(FROM B9)
OPER. DEBT, INTEREST
38E + 39E 283000 680
NET COST GENERAL FUND
(NOT < 0)
D1
D2
D3
D4
D5
D6
D7
D8
D9
D10
D11
PART D: 2013-14 NET COST OF DEBT SERVICE FUND - BUDGET
TOTAL REV & TRNSF IN
38R +39R 000000 000
GEN FUND TRNSF-IN
10E 411000 838 + 839
PROPERTY TAX
38R + 39R 210
PMNT LIEU OF TAX
38R + 39R 220
NON-REV RECEIPTS
38R + 39R 800
DEDUCTIBLE RCPTS
(D1-D2-D3-D4-D5)
TOTAL EXPENDITURES
38E + 39E 000000 000
AIDABLE FUND 41 EXP
(EST BY DPI)
REFINANCING
38E + 39E 282000 000
OPERATIONAL DEBT
38E + 39E 283000 000
NET COST DEBT SERVICE
E1
E2
E3
E4
E5
PART E: 2013-14 SHARED COST - BUDGET
NET COST: GEN FND + DEBT SRV
COSTS OF LAWSUIT
TRANSPORT OF INDIGENT PUPILS 10P 256000 000
IMPACT AID NON-DED NEG AID HOLD HARMLESS
TOTAL SHARED COST FOR EQUALIZATION AID
(+)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(=)
41,584,891.47
13,942,732.00
25,328,887.86
(+)
(-)
(-)
(-)
42,047,220.51
0.00
(-)
(+)
(=)
2,313,271.61
42,047,220.51
2,313,271.61
3,062,948.00
0.00
3,062,948.00
(C8 + D11) (+)
(-)
(-)
(-)
(=)
42,693,621.90
0.00
UHS
5,790,000
3,213,603
1,595,664
(E5 / A7)
(A7 * E6)
(LESSER OF E5 OR E7)
(A7 * E9)
((LESSER OF E5 OR E10)-E8)
(GREATER OF (E5-E8-E11) OR 0)
PART F: EQUALIZED VALUE
2013 TIF-OUT SCH AID VALUE
(Values Received May, 2013, With Reorg Adjusts, include May, 2013Computer Value)
EQUALIZED VALUE PER MEMBER =
414,714
(F1 / A7)
G1
G2
G3
G4
G5
G6
G7
G8
G9
G10
G11
G12
G13
G14
G15
PART G: 2014-15 JULY 1 AID ESTIMATE - EQUALIZATION AID BY TIER
PRIMARY GUARANTEED VALUE PER MEMBER
Enter values fro m abo ve based o n District type>>
PRIMARY GUARANTEED VALUATION
(A7 * G1)
PRIMARY REQUIRED RATE (8 DECIMALS)
(E8 / G2)
PRIMARY NET GUARANTEED VALUE
(G2 - F1)
PRIMARY EQUALIZATION AID
(G3 * G4) NOT< ZERO
EST SECONDARY GUARANTEED VALUE PER MEMBEnter values fro m abo ve based o n District type>>
SECONDARY GUARANTEED VALUATION
(A7 * G6)
SECONDARY REQUIRED RATE
(E11 / G7)
SECONDARY NET GUARANTEED VALUE
(G7 - F1)
SECONDARY EQUALIZATION AID (may be neg)
(G8 * G9)
EST TERTIARY GUARANTEED VALUE PER MEMBER Enter values fro m abo ve based o n District type>>
TERTIARY GUARANTEED VALUATION
(A7 * G11)
TERTIARY REQUIRED RATE
(E12 / G12)
TERTIARY NET GUARANTEED VALUE
(G12 - F1)
TERTIARY EQUALIZATION AID (may be neg)
(G13 * G14)
H1
H2
H2A
H3
H4
H5
H6
PART H: 2014-15 JULY 1 AID ESTIMATE - EQUALIZATION AID
13-14 JULY 1 ESTIMATED EQUALIZATION AID (NOT<ZERO)
(G5 + G10 + G15)
A. PAR CHOICE , EQ (MILWAUKEE & RACINE)
PAYMENT RO MILWAUKEE SD FROM CITY OF MILWAUKEE
MILWAUKEE CHARTER PROGRAM, EQ
H1 x -0.014480081
12-13 OCT-TO-FINAL EQUAL + CHOICE/CHARTER ADJ (11-12 Line H1, see note p2)
PRIOR YR DATA ERROR ADJ
13-14 OCT 15 CERTIFIED EQUAL AID SUBTOTAL (ROUND)
(H1 + H2 + H3 + H4 + H5)
39,733,948.90
(+)
(-)
(-)
(-)
(-)
(-)
(+)
(+)
(-)
(-)
(=)
SHARED COST PER MEMBER
PRIMARY COST CEILING PER MEMB = 1,000
PRIMARY CEILING
PRIMARY SHARED COST
SECONDARY COST CEILING PER MEMBER
SECONDARY CEILING
SECONDARY SHARED COST
TERTIARY SHARED COST
K-12
1,930,000
1,071,201
531,888
K-8
2,895,000
1,606,802
797,832
9,640
1,000.00
4,428,770.00
4,428,770.00
9,391.00
41,590,579.07
37,161,809.07
1,103,042.83
1,836,671,386
1,930,000
8,547,526,100.00
0.00051813
6,710,854,714.00
3,477,095.15
1,071,201
4,744,102,852.77
0.00783326
2,907,431,466.77
22,774,666.61
531,888
2,355,609,617.76
0.00046826
518,938,231.76
242,998.02
26,494,760.00
(391,737.48)
(481.00)
26,102,542.00
0.00
2,959,673.00
2,959,673.00
42,693,621.90
I1
I2A
I2B
I2C
I3
I4
I5A
I5B
*I5
PART I: 2012-13 JULY 1 AID ESTIMATE - SPECIAL ADJUSTMENT AID / FINAL GENERAL AID ESTIMATE
Note: Go to SECTION I COMPUTATION area on page tw o (below )
13-14 SPECIAL ADJUSTMENT/CH 220 AID ELIG
0.00
PARENTAL CHOICE, SPADJ/220 (MILWAUKEE & RACINE)
0.00
MLWK CHARTER PGM, SPEC ADJ/220
I1 x -0.014480081
0.00
12-13 OCT-TO-FINAL SPEC ADJ/220 AID ADJ (12-13 Line I3, see note p2)
0.00
13-14 SPEC ADJ/220 JULY 1ST ESTIMATE (ROUND)
(I1+I2A+I2B+I2C)
0.00
12-13 OCT-TO-FINAL CHOICE/CHARTER DEDUCT ADJ (11-12 Line H3, see note p2)
JULY 1 ESTIMATED 2014-15 GEN AID SUBTOTAL
(H6+I3+I4)
26,102,542.00
12-13 OCT-TO-FINAL ACT 28 AID ADJ
JULY 1 ESTIMATED GEN AID
$
25,328,795.00
(I5A+I5B)
26,102,542.00
2014-2015 PROPERTY TAX LEVY
PRIOR YEAR CARRYOVER
• Carryover
• The State of Wisconsin allows school districts to over expend
the revenue limit through the use of prior year carryover
funds
• Prior year carryover is essentially money left “on the table” by a
school district if that district did not tax to the full amount
allowed under the revenue limit the previous year
• KASD “under levied” in 2012-2013 by $1.4 million
• Using $590,000 of the under levied tax dollars during 2013-2014
created a balanced budget and a mill rate of $9.29 per $1,000 of
value
• KASD is not planning on utilizing any of the $890,000 remaining in the
under levy fund during 2014-2015
• As it stands the practice allowing school districts to
“chargeback” for an under levy per the revenue limit is not
expected to change
2014-2015 PROPERTY TAX LEVY
BOARD OF EDUCATION DECISION
• Various and unending scenarios
• The Board of Education must set a tax levy by the end of October.
Untaxed funds from previous fiscal years has created the potential
for many varied scenarios with regards to the total tax levy and
mill rate. The chart below summarizes the District’s total tax levy
over the past 19 years plus the projected 2014-2015 overall levy.
• KASD is expected to increase the tax levy by 0.89% for 2014-2015 over
2013-2014
2014-2015 Budget Hearing
Action Items
 The Board of Education for the Kaukauna Area School
District must take action on the 2014-2015 budget and
tax levy.
 Action Item #1 – The Kaukauna Area School District sets
the 2014-2015 tax levy at $17,206,766. The levy includes
$14,080,058 for general operations, $3,047,335 for debt
service, and $79,373 for community service. The tax levy
sets the mill rate at $9.09 per $1,000 of property value.
 Action Item # 2 – The Kaukauna Area School District sets
the 2014-2015 operating revenue budget at $55,323,982
and the 2014-2015 operating expenditure budget at
$55,323,982.
 Operating expenses and revenues shown include a $4,722,556
transfer from Fund 10 to Fund 27 to cover the cost of special
education not funded through state or federal sources.

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