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WASBO Accounting ConferenceThursday, March 17, 2016

Presented by:K it Dailey, Public Outreach Specialist, Eppstein Uhen Architects (EUA)

Bob Avery , D irector of Business Services, Baraboo School District

CommunicatingFiscalInformationKnow YourAudience and YourMessage

Agenda for Today

u The Challengeu Know Your Audienceu 3+3u Tools to Tell Your Storyu Key Variablesu Referendum Communication Tips and Tacticsu Questions

Recurring: 2Pass :2Fail:0

The Challenge

Communicating about school financial issues is one of the most difficult yet most important

topics for school districts.

As a school business official, you will be called upon to communicate on these topics.

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The Wisconsin School Public Relat ions Associat ion is here to help.

www.wspra.org

Good News!

Does it Really Matter if Residents Understand?

Ø School funding issues affect nearly everything that happens in a district.

Ø Funding directly impacts children and the opportunities they will (or will not) have today and in the future.

Ø School funding is complex, it can also easily become a “hot topic” in local communities around which there may be many different perspectives.

YES.

Why is School Funding Such a Big Issue?

Sour ce: Depar tm ent of Public I nst r uct ion

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Know Your Audience

Ø What is the background knowledge of your audience?Ø Are they familiar with revenue limits? State aids? Mill rates?Ø Where do they live?Ø How long have they lived in the district?Ø What is their specific question or concern?

Who your audience is should influence how you craft your message.

Know Your Audience

Community School Board Administrat ion Staff

ThreeCriticalQuestions

Whatare theissues?

Whyisthisimportant?

Howwillitimpactme?

Communicate Effectively

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Ø Focus on needs as central, consistent, simple messages

Ø Provide supporting facts to build credibility: 3+3Ø Use examples, stories, and images to move messages from

abstract to concrete ideas

Create Key Messages that Stick

Example Key Message:

“The amount of money a district can generate is dependent on enrollment and our student population has slowly been declining. Despite ongoing efforts to reduce our operating budget, our costs still exceed

our revenue.”

Think 3+3

Supporting Facts (the +3)Example:

• In the 2000/2001 school year, our student population was 1200 students. Today we serve 980 students.

• In the last ten years, we have cut more than $2.1 million from our general operating budget in an effort to balance expenses with revenues.

• During this timeframe, we have eliminated 3.5 administrators, 9.5 teachers, 12 support staff and reduced all department budgets by approximately 10%.

Think 3+3

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Use Them Effectively

Ø Use key messages consistently and repetitivelyØ Use multiple mediums to carry your messagesØ Always think of your audience first!Ø Provide clear visuals to tell your story

Ø SchoolDistricts byCategoryofGeneralEqualizationAid

DPI Maps

Sour ce: Depar tm ent of Public I nst r uct ion

Ø Change inMembership

DPI Maps

Sour ce: Depar tm ent of Public I nst r uct ion

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$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16

♦ Dist r ict■ St at e Ave

Di st r i ct Val ue per M ember Compared t o t he St at e AverageØ StateEQAid

valuepermember

Ø AvailablefromDPI

Sample Reports

Sour ce: Depar tm ent of Public I nst r uct ion

u Forecast5u RWBaird

u Ehlers

Sample Reports from Vendor Software

Communication Tools to Tell Your StoryØ Direct communication to all stakeholders groups

Ø Fact sheets & FAQs

Ø Postcards and newslettersØ E-blasts, direct parent outreach by email/text

Ø Video

Ø Community Outreach

Ø One-on-one info sessions

Ø Small group discussions/focus groupsØ Large community meetings/forums/workshops

Ø Social media

Ø “Backpack” network/key communicators

Ø News media

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District Website

Sample Mailer

Manage the Media

Ø Assume local reporters know nothing about school finance, budgeting, and District goals

Ø Always respond to calls and questions ASAPØ Provide written materials like new releases, fact sheets, data,

background info for review and help them understand itØ Be as proactive as possible to help reporters get accurate

information and stay on messageØ Correct inaccuracies and errors promptly but politely

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You Are the Expert

To earn and keep the trust of your audience, you must demonstrate competence – that you know what you’re talking about.Therefore, you need to communicate regularly, and accurately, to various audiences to build that trust.And, even then, there will be people who don’t trust you.

Key Budget and Finance VariablesØ Avoid the JargonØ RevenuesØ ExpendituresØ Historical DataØ Impact of the LevyØ What is the Mill Rate?Ø Comparative DataØ Fund Balance

Avoid the Jargon

u Negative Tertiary Aidu Special Adjustment Aidu Per Pupil Adjustmentu Non-Recurring Exemptionsu Guaranteed Valuesu Cost Ceilingsu Defeasement

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Revenue Limits

90.8%

9.2%

Subject to Revenue LimitOutside Revenue Limit

Subject to Rev Limit

Local Property Tax 38.5%

State General Aid 52.0%

Computer Aid 0.3%

Subtotal: Revenue Limit 90.8%

Outside Revenue Limit

Other Local 1.5%

Inter-District 2.5%

Intermediate Sources 0.0%

Other State 2.4%

Federal 2.4%

Other 0.4%

Subtotal Outside Rev Lmt 9.2%

State and Local Support for Education

57.6%

42.4%

State Aid Local Property Tax

Expenditures

76.0%

14.4%

6.6%

3.0%

Salaries and Benefits

Purchased Services

Supplies and Equipment

Debt Service, Insurance & Other

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Trend Information

$0

$5, 000, 000

$10, 000, 000

$15, 000, 000

$20, 000, 000

$25, 000, 000

$30, 000, 000

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

M ax Revenue Lim it

Gener al Aid Cer t

Tot al Tax Levy ( All- Funds)

Dividing the LevyCo unty Co unty -

Mun i Co deTa xa tio n District Ta x A p p o rtio nme nt

Eq ua l ize d V aluePe rce n t o f Sch ool

District in Ta xa tio n District

To ta l Ce rti fie d Ta x Le vie s F ro m PI-401

A mo unt o f Ta x Levy fo r Ta xa tion District

Co lumb ia 11 004 T. Ca le d o n ia 1,076,727.00 0.068995481 13,882,037.82 9,577.98Sa uk 56 206 C. Ba ra b o o 739,289,000.0047.372825360 13,882,037.82 6,576,313.52Sa uk 56 002 T. Ba ra b o o 196,874,400.00 12.615494850 13,882,037.82 1,751,287.77Sa uk 56 008 T. De l to n 212,264,303.0013.601662890 13,882,037.82 1,888,187.99Sa uk 56 010 T. Exce lsio r 35,647,028.00 2.284222317 13,882,037.82 317,096.61Sa uk 56 012 T. F a i rfie ld 102,662,500.00 6.578499997 13,882,037.82 913,229.86Sa uk 56 016 T. F re e d o m 22,592,745.00 1.447718231 13,882,037.82 200,972.79Sa uk 56 018 T. Gre e n fie ld 99,655,788.00 6.385833201 13,882,037.82 886,483.78Sa uk 56 026 T. Me rrima c 26,853,187.00 1.720722665 13,882,037.82 238,871.37Sa uk 56 034 T. Sump te r 3,164,801.00 0.202796964 13,882,037.82 28,152.35Sa uk 56 146 V . La k e De l ton 1,722,041.00 0.110346492 13,882,037.82 15,318.34Sa uk 56 161 V . No rth F re ed om 25,091,900.00 1.607861333 13,882,037.82 223,203.92Sa uk 56 191 V . We st Ba ra b o o 93,681,700.00 6.003020218 13,882,037.82 833,341.54District To ta ls 1,560,576,120.00 100.000000 13,882,037.82 13,882,037.82

What is the Mill Rate?

u A mathematical constructu No relation to what the tax rate any individual

property owner will payu Useful for comparative purposes

u But don’t tell the whole story!

u Useful for trend analysis and future planningu USE WITH CAUTION

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Example Tax Bill

Note the district levy increase was 6.38%, this taxpayer’s increase is 10.70%

Why the discrepancy?

Multiple Possible Reasons

u Shifting ratio of equalized values between municipalities in the district

u Shifting ratio of assessed values between properties within a municipality

u Reassessment

u Improvement Project

u New TIF that takes property within a municipality off the tax rolls.

Comparative Data

$0. 000

$2. 000

$4. 000

$6. 000

$8. 000

$10. 000

$12. 000

Bar aboo Lodi M aust on Por t age Poynet t e Reedsbur g Sauk Pr air ie

Tom ah W I Dells

$8.8

95

$11.

709

$11.

957

$9.9

84

$9.4

67

$9.2

78

$10.

328

$8.5

05

$7.7

68

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What Does the Data Mean?

$0. 000

$2. 000

$4. 000

$6. 000

$8. 000

$10. 000

$12. 000

$14. 000

Bar aboo Lodi M aust on Por t age Poynet t e Reedsbur g Sauk Pr air ie Tom ah W I Dells

Mill

Rate

Sauk Co Dist r ict s

RL Levy Tot al Levy

Fund Balance

u What it isu A snapshot picture in a moment in t ime (the end of business on June

30th)u Short-term assets minus short -term liabilit ies

u And what it isn’tu A statement of your cash posit ion

u Why is it important?u Indicator of district fiscal health

u Trendsu Ability to respond to emergencies

u Bond Ratings!

Fund Balance

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Cash Position – Not Fund Balance

Referendum Communication Tips & Tactics

• Taxpayers mustbe aware of the FACTS

• Information mustbe offeredOBJECTIVELY

• Consistent information provides CREDIBILITY

• Open communication and community engagement builds TRUST• Trust needed togenerate SUPPORT forchange Support for

change

Trust

Objectivity

Credibility

Facts

Why is Communication SO Important?

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Ø It is never too early to begin communicating about your

needs

Ø Communicate from the “inside-out” throughout the

process

Ø Consistency is critical; stick to your key messages

Critical Referendum Communications

Create a communications plan

Declaracion de Mision del Distrito El Distrito Escolar de Baraboo esta dedicado a ser el mejor de la comunidad educativa mediante el apoyo al crecimiento máximo de

cada estudiante, permitiendo que cada uno tenga éxito y contribuya positivamente a un mundo en constante evolución.

PORQUE se Propone este plan?

Que hay en la BOLETA para el Martes 1 de Abril de 2014?

Hoja Informativa del Referéndum

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59%

de los residentes del distrito indicaron

que sería probable un apoyo a un

referéndum de $10M para corregir

la seguridad, proteccion y proyectos de

mantenimiento a través del distrito,

en una encuesta a través de toda

la comunidad conducida este

otoño.

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Para revisar las resoluciones electorales aprobadas, por favor visite

http://www.baraboo.k12.wi.us/referendum.cfm

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Distrito Escolar de

Vote el 1ero de AbrilFase 1:

Seguridad y MantenimientoBARABOO

Capital MaintenanceTechnology Infrastructure

Safety & Security

Learning Spaces

What is included in the Referendum PROJECT?CUSHING DOUSMANMAGEE

WALES MIDDLE SCHOOL HIGH SCHOOL BRANDY-BROOK DISTRICT OFFICE

CAPITAL MAINTENANCE » $ 21.2M » Upgrade and repair failing, inefficient systems

Repair, replace or upgrade failing plumbing, HVAC and electrical systems

Repair failing roofing, windows, doors, tuck-pointing and/or finishes

Upgrade accessibility to meet ADA code compliance

Remove/abate asbestos Replace failing flooring

Improve site drainageTECHNOLOGY INFRASTRUCTURE » $ 7.9M » Upgrade technology infrastructure for data networks

Upgrade wireless and switched network equipment

Install fiber optic wide-area network

SAFETY & SECURITY » $ 12.6M » Establish controlled access and improve safety

Renovate or construct secured main entrances

Upgrade building systems to improve perimeter lighting, site surveillance,

door monitoring, fire alarm and intercom systems

Add internal emergency lighting and emergency generators

LEARNING SPACES » $ 7.9M » Renovate/reconfigure classroom and commons spaces

Create small group learning space *

Create multi-purpose space in cafeteria, kitchen and serving areas

Increase instructional classroom space

Create or reconfigure early learning/4K classroom

Add flexibility to Library Media/Activity Center

Improve collaborative learning spaces in 6th, 7th, 8th grade commons spaces

Relocate various classrooms to create department efficiencies and collaboration

Snap here to learn more!

Total cost not to exceed $49,600,000.

FOLLOW USwww.kmsd.edu/referendum

To address critical needs including the following:

- Replace failing, inefficient building systems

- Provide adequate technology infrastructure

- Cost-effectively repair and revitalize aging schools

WHY is the District proposing this plan?

Preliminary tax impact estimates are

based on a phased-in-approach to

borrowing over several years using an

estimated interest rate of 4.5%. Each

borrowing (loan) would be amortized

for a maximum of 20 years. Tax impact

estimates have been provided by

financial advisors from Robert W. Baird.

What is the estimated IMPACT to taxpayers?

Not-to-exceed PROJECT COST of $49,600,000

Estimated PROPERTY TAX IMPACT

Tax Impact: ($0.44 per $1,000 of property value)

Per YearPer Month

$ 100,000 of property value

$ 44.00$ 3.67

$ 300,000 of property value

$ 132.00$ 11.00

$ 500,000 of property value

$ 220.00$ 18.33

Major construction activity will be planned to minimize the impact

on students and staff. All significant projects will be completed by

the start of the 2016-2017 school year.

What is the planning & construction TIMELINE?SPRINGSUMMER

FALLWINTER

SPRINGSUMMER

FALLWINTER

SPRINGSUMMER

FALLWINTER

SPRINGSUMMER

DESIGN

CONSTRUCTION

TECHNOLOGY

Major Activity

Minor Activity

2014 SCHOOL YEAR2015 SCHOOL YEAR

2016 SCHOOL YEAR

LEARN MORE. BE INFORMED. VOTE APRIL 1.

* Improvements are being done by reconfiguring existing office spaces

Communication materials matter!

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Ø Use charts, graphs, and tables to help tell your story

Ø Avoid spreadsheets, columns of numbers, and complicated graphics

Use Visuals to Tell Your Story

Ø Keep the focus on students with lots of pictures!

Keep Kids First

Communicating the Cost

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But Be Prepared for This…

Questions?

Thank You!

P resen ted b y:

Kit Dailey, Public Outreach Specialis tkitd@eua.com414-232-0246

@KitDailey_EUA

P resen ted b y:

Bob Avery, Director of Bus iness Servicesbavery@barabooschools .net

608-355-3950@BAvery_SFO