SB Finances. SBSD Finances Are we that much different?

SB Finances

SBSD Finances

•Are we that much different?

SBSD Finances

•Are we that much different?•How did we get here?

SBSD Finances

•Are we that much different?•How did we get here?

•What/Who is Responsible?

SBSD Finances

•Are we that much different?•How did we get here?

•What/Who is Responsible?•Can this continue?

Are We That Much Different?

Are We That Much Different?

• Yes and No

Are We That Much Different?

• Yes and No• No: Other schools probably have more

discretionary money than they admit as it is fashionable to be anti Act 10.

Are We That Much Different?

• Yes and No• No: Other schools probably have more

discretionary money than they admit as it is fashionable to be anti Act 10.

• Yes: We have considerably more money than most other schools.

How Did We Get Here?

• 1. Increased Revenue Limit

How Did We Get Here?

• 1. Increased Revenue Limit– 2013-14 Revenue Limit Ceiling Threshold at

$9,100.00.

How Did We Get Here?

• 1. Increased Revenue Limit– 2013-14 Revenue Limit Ceiling Threshold at

$9,100.00.– 2013-14 SBSD Revenue Limit estimated at

$9,431.76.

How Did We Get Here?

• 1. Increased Revenue Limit– 2013-14 Revenue Limit Ceiling Threshold at

$9,100.00.– 2013-14 SBSD Revenue Limit estimated at

$9,431.76.– SBSD three year student Membership average at

979

How Did We Get Here?

• 1. Increased Revenue Limit– 2013-14 Revenue Limit Ceiling Threshold at

$9,100.00.– 2013-14 SBSD Revenue Limit estimated at

$9,431.76.– SBSD three year student Membership average at

979– Total Additional Revenue equals $323,914.

How Did We Get Here?

• 2. OPEB DEBT

How Did We Get Here?

• 2. OPEB DEBT– Feb. 1, 2005 “Evaluation of Liabilities for Other

Postemployment Benefits.”• Average OPEB (ARC) payment for three years including

2012, 13, 14, and 15 average of $289,110.• OPEB Debt Listed at $9,127,605.

How Did We Get Here?

• 2. OPEB DEBT– Feb. 1, 2005 “Evaluation of Liabilities for Other

Postemployment Benefits.”• Average OPEB (ARC) payment for three years including

2012, 13, 14, and 15 average of $289,110.• OPEB Debt Listed at $9,127,605.

– Sept. 26, 2011 “Accounting Report of Liabilities for Participant’s Post Employment Benefits.”• Three annual payments of $446,378.41 remaining.• OPEB Debt Listed at $1,339,135.23

How Did We Get Here?• 2. OPEB DEBT– Feb. 1, 2005 “Evaluation of Liabilities for Other

Postemployment Benefits.”• Average OPEB (ARC) payment for three years including 2012, 13,

14, and 15 average of $289,110.• OPEB Debt Listed at $9,127,605.

– Sept. 26, 2011 “Accounting Report of Liabilities for Participant’s Post Employment Benefits.”• Three annual payments of $446,378.41 remaining.• OPEB Debt Listed at $1,339,135.23

– April 1, 2013 “Accounting of Report of Liabilities for Participant’s Post Employment Benefits.”• One payment of $161,455.37 remaining.• OPEB Debt paid off on June 30, 2013. Total remaining is $0.00.

How Did We Get Here?

3. Health Insurance Premium Management

How Did We Get Here?

3. Health Insurance Premium Management- 03-04 Costing: $1,392,002.- 12-13 Costing: 1,205,112.- Cost Reduction over 9 years = $186,890.

How Did We Get Here?

3. Health Insurance Premium Management- 03-04 Costing: $1,392,002.- 12-13 Costing: 1,205,112.- Cost Reduction over 9 years = $186,890.

- 12-13 Costing at 7% Increase for 9 years = $2,559,139 or $1,167,137 increase.

How Did We Get Here?

• 4. Reduction in Energy Costs

How Did We Get Here?

• 4. Reduction in Energy Costs– 2003 Electric Usage: 1,956,083 KW.– 2011 Electric Usage: 1,001,075 KW.– 995,008 KW reduction at .11/KW = $105,051.

How Did We Get Here?

• 4. Reduction in Energy Costs– 2003 Electric Usage: 1,956,083 KW.– 2011 Electric Usage: 1,001,075 KW.– 995,008 KW reduction at .11/KW = $105,051.– 2003 Natural Gas Usage: 151,032 Therms.– 2011 Natural Gas Usage: 88,853 Therms.– 62,179 Therm reduction at .60/Therm = $37,307.

How Did We Get Here?

• 4. Reduction in Energy Costs– 2003 Electric Usage: 1,956,083 KW.– 2011 Electric Usage: 1,001,075 KW.– 995,008 KW reduction at .11/KW = $105,051.– 2003 Natural Gas Usage: 151,032 Therms.– 2011 Natural Gas Usage: 88,853 Therms.– 62,179 Therm reduction at .60/Therm = $37,307.

• Total Estimated Reduction equals $142,358.

How Did We Get Here?

• 5. Maintenance and Cleaning Staff

How Did We Get Here?

• 5. Maintenance and Cleaning Staff– 2002-03 Wages and Benefits: $452,013– 2012-13 Wages and Benefits: $369,963– Reduction over 10 years = $82,051

How Did We Get Here?

• 5. Maintenance and Cleaning Staff– 2002-03 Wages and Benefits: $452,013– 2012-13 Wages and Benefits: $369,963– Reduction over 10 years = $82,051

– 4% QEO for 10 years = $669,090 costing for $299,127 savings.

How Did We Get Here?

• 6. Unfunded Liability Loan– Paid $71,154 annually through 2009.– Paid off Loan on March 10, 2010.– Total Reduced Expenditure equals $71,154.

How Did We Get Here?

• 7. Teaching Staff• - Retirement of 52 of 75 staff members, while

a great loss of experience, has significantly counteracted staff wage increases.

How Did We Get Here?

• 7. Teaching Staff• - Retirement of 52 of 75 staff members, while

a great loss of experience, has significantly counteracted staff wage increases.

• This retirement affect has also contributed to the reduction in health care family premiums.

Who/What is Responsible?

Who/What is responsible?

• 1. Was it Act 10? Yes and No

Who/What is responsible?

• 1. Was it Act 10? Yes and No

• No. – Most of the aforementioned savings were

completed prior to Act 10.– We were successfully working with the unions.

Who/What is responsible?• 1. Was it Act 10? Yes and No

• No. – Most of the aforementioned savings were completed

prior to Act 10.– We were successfully working with the unions.

• Yes.• - The reduction in OPEB would not likely have

been possible prior to Act 10 or at least resolved as quickly.

Who/What is Responsible?

• 2. District Budget Parameters?– 1,000 to 1,200 enrollment is good size.– Relative District poorness helps with Revenue.– Inherited Fund Balance.

Who/What is Responsible?

• 3. District Decision Making?– Consistently better budget for ten years would

seem to indicate we have made some good decisions.

– Investing heavily in reducing future expenditures is now paying off.

– Conservative mindset.

What do we spend our Money On?

What do we spend our Money On?

• 1. Professional Development

What do we spend our Money On?

• 1. Professional Development• 2. Instructional Leadership

What do we spend our Money On?

• 1. Professional Development• 2. Instructional Leadership• 3. Near bottom to near top in salaries.

What do we spend our Money On?

• 1. Professional Development• 2. Instructional Leadership• 3. Near bottom to near top in salaries.• 4. Building Maintenance

What do we spend our Money On?

• 1. Professional Development• 2. Instructional Leadership• 3. Near bottom to near top in salaries.• 4. Building Maintenance• 5. Reducing Future Expenditures

Can This Continue?

Can This Continue?

Yes, if we…1.continue to develop new ideas to reduce

health care costs while maintaining a similar level of benefit.

Can This Continue?

2. plan for significant rising teacher salary expenditures as young teachers work their way through the present or a new salary schedule.

Can This Continue?

• 3. avoid the temptation to overspend especially on purchases which become annual expenditures.

Can This Continue?

4. maintain the current philosophy and District structure as the Board and District staff evolve.

Can This Continue?

• 5. slowly increase our fund balance in order to be fiscally ready for new challenges down the road.

Can This Continue?

• 6. continue to invest in our building in order to further reduce energy consumption.

Can This Continue?

• 7. anticipate enrollment and program changes and build/maintain accordingly prior to the need to do so.

Can This Continue?

• 8. monitor the state budget and continue to capitalize on what we can.

Can This Continue?

• 9. continue with similar District fiscal/budgeting parameters (somewhat out of our hands).

Recommendations

Consider three board meeting presentations– 1. Spending on Academics with Laura, Dave, and

Nick.

– 2. Spending on Maintenance, Projects, and Energy Conservation with Tim and Jim.

– 3. Board philosophy and Direction

Questions?

• ??