Parkview School District 2014-2015 Budget Hearing and

Annual Meeting

Parkview School District 2014-2015 Budget Hearing and

Annual Meeting

Monday, August 18, 20145:30 p.m.

Parkview Jr./Sr. High School LMC

Monday, August 18, 20145:30 p.m.

Parkview Jr./Sr. High School LMC

Parkview School District2013-2014 Budget Overview

• The Parkview School District is expected to have a shortfall of $277,819.99 in the General Fund for the 2013-2014 fiscal year.

• This number could change depending on the results of the audit for 2013-2014.

• The projected shortfall from last year’s Annual Meeting was $331,699.81.

• The District’s fund balance will be reduced by the amount of the shortfall.

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Parkview School District2014-2015 Budget Overview

• The Parkview School District is expected to have a budget deficit of $186,730.30 for the 2014-2015 fiscal year.

• The main reason for the budget deficit is a reduction in revenue from 2014-2015 due to declining enrollment.

• The budget deficit will be paid for using funds from the District’s fund balance.

• The budget deficit would have been $536,730.30 if the operational referendum for $350,000 did not pass.

• 2014-2015 numbers are still estimates at this time as there are various factors that could still change the final amount.

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Parkview School District 2014-2015 Budget Timeline

• The 2014-2015 Budget for the Parkview School District is an estimate.

- The budget presented today may change between now and November 1st when the final levy is set.

- Events that could change the final numbers.

• The 3rd Friday pupil count in September.

• Final Equalization Aid numbers from DPI.

• The 2013-2014 audit.

• Staffing changes with new hires.

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School Finance Accounting Basics

• School districts in Wisconsin use the Wisconsin Uniform Financial Accounting Requirements (WUFAR) to categorize all of their finances.

• The WUFAR is fund accounting, which separates each revenue and expenditure into a specific fund.

• A majority of school finances are held in the General Fund (Fund 10), but there are also other funds for areas like food service and special education.

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Parkview School District2014-2015 Budget Adoption

• The Department of Public Instruction requires every school district in the state to complete a Budget Adoption sheet each year for the proposed budget for the upcoming year and the last two years.

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GENERAL FUND Audited 2012-2013

Unaudited 2013-2014

Budget 2014-2015

Beginning Fund Balance 2,772,042.00 2,528,348.59 2,250,528.60 Ending Fund Balance 2,528,348.59 2,250,528.60 2,063,798.30 REVENUES & OTHER FINANCING SOURCES      Transfers-In (Source 100) 0.00 0.00 0.00 Local Sources (Source 200) 3,791,188.95 3,780,354.54 4,012,199.66 Inter-district Payments (Source 300 + 400) 248,754.00 340,039.00 339,389.00 Intermediate Sources (Source 500) 600.00 8,040.00 500.00 State Sources (Source 600) 5,936,548.57 5,805,953.22 5,705,537.00 Federal Sources (Source 700) 161,677.02 200,166.33 199,225.00 All Other Sources (Source 800 + 900) 290,469.41 65,685.98 63,897.78 TOTAL REVENUES & OTHER FINANCING SOURCES 10,429,237.95 10,200,239.07 10,320,748.44 EXPENDITURES & OTHER FINANCING USES      Instruction (Function 100 000) 5,005,806.18 4,958,884.81 4,693,189.89 Support Services (Function 200 000) 3,958,404.33 3,819,400.42 3,993,731.54 Non-Program Transactions (Function 400 000) 1,708,720.85 1,699,773.83 1,820,557.31 TOTAL EXPENDITURES & OTHER FINANCING USES 10,672,931.36 10,478,059.06 10,507,478.74

Parkview School DistrictBudget Cuts and Reductions for 2014-

2015

• In order to ease the financial shortfall for 2014-2015, the Parkview School District has taken numerous steps to reduce expenses.

• The District made changes to the health insurance plan for 2014-2015 by switching from a POS plan with Dean to an HMO plan. Switching to an HMO plan helped reduce the cost impact of the renewal rates from Dean for 2014-2015 which came in at a 8.9% increase for 2014-2015. Going to an HMO plan reduced that increase by 2%.

• The Parkview School District has reduced the health insurance alternative benefit amount for eligible staff by $1,500 per employee.

• The District has also reduced costs by not replacing the technology education teacher, by reducing another teacher position to half-time and from the replacement of teachers who have retired or left.

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Parkview School District Revenue Limit

• The revenue limit is adjusted each year based on many factors including enrollment, property value and a per pupil adjustment.

• From 2001 to 2010, the average per pupil adjustment amount was an increase of $237.90.

• In 2011, the per pupil adjustment amount was a decrease of $528.81 for every district in the state (Act 10).

• In 2013, the per pupil adjustment amount was $75 and will be $75 again this year with another $150 increase outside of the revenue limit.

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YearRevenue

LimitYearly

Change

10-11$11,102,55

60.70%

11-12$10,162,21

1-8.47%

12-13 $9,645,261 -5.09%

13-14 $9,608,961 -0.37%

14-15* $9,661,699 0.55%

Parkview School District Revenue Limit History

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Parkview School District Operational Referendum

• Starting in 2014-2015, the Parkview School District will be able to exceed the revenue limit by $350,000 for three years.

• Without this approved operational referendum, the District would have had a revenue limit of $9,311,699 this year, or $350,000 less than projected.

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10. Total 2014-15 Non-Recurring Exemptions (A+B+C+D+E) 625,624A. Non-Recurring Referenda to Exceed 2014-15 Limit 350,000 <<Enter if not pre-filled

B. Declining Enrollment Exemption for 2014-15 (from left) 275,624C. Energy Efficiency Exemption for 2014-15 0 <<Enter if not pre-filled

D. Adjustment for Refunded or Rescinded Taxes for 2014-15 0E. Prior Year Open Enrollment (uncounted pupils) 0

11. 2014-15 Revenue Limit With All Exemptions (Ln 9 + Ln 10) 9,661,69912. Total Aid to be Used in Computation (12A + 12B) 5,486,241A. 2014-15 July 1 ESTIMATE of General Aid 5,486,241B. State Aid to High Poverty Districts (not all dists) 0

DISTRICTS WILL NEED TO PROJECT AN OCTOBER 15, 2014 AID ESTIMATE.

Parkview School District State General Aid

• Determining state general aid each year involves many different factors and a complex calculation.

• State general aid for the Parkview School District has been decreasing mainly due to declining enrollment and the amount of funding from the state, the two main factors in the equation.

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YearState

General AidYearly

Change

10-11 $7,097,241 -4.49%

11-12 $6,387,517 -10.00%

12-13 $5,806,470 -9.10%

13-14 $5,646,272 -2.76%

14-15* $5,486,241 -2.83%

Parkview School District Local Property Taxes

• After a 12% increase in 2010-2011, the tax levy for the District has decreased by 5.33% in 2011-2012, 1.00% in 2012-2013 and then increased by .87% in 2013-2014. For 2014-2015, the tax levy is expected to increase by 29.37% due mainly to the operational and facility referendums that were passed on April 1, 2014.

• The levy also increased due to the reduction in state aid. Without the referendums, the tax levy would have increased by 5.36%.

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Year Tax LevyYearly

Change

10-11 $4,190,570 12.00%

11-12 $3,967,282 -5.33%

12-13 $3,927,580 -1.00%

13-14 $3,961,803 0.87%

14-15* $5,125,576 29.37%

Parkview School District State General Aid and Local Property

Tax History

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Parkview School District Mill Rate

• The mill rate is a number used to equate the amount of taxes that will be assessed on a property that has a certain valuation.

• For example, a mill rate of $14.10 would equal a tax levy of $1,410 on a house valued at $100,000.

• An increase or decrease of the mill rate could vary due to changes in property values.

• It is important to remember that the mill rate is an average for multiple municipalities and an individual’s actual mill rate could vary.

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YearState

Avg. Mill Rate

Dist. Avg. Mill Rate

Yearly Chang

e

10-11 $9.80 $10.0216.24

%

11-12 $9.88 $9.87 -1.50%

12-13 $10.21 $10.02 1.52%

13-14 $10.36 $10.46 4.39%

14-15 n/a $14.1034.80

%

Parkview School District Enrollment FTE

• Enrollment FTE (Full-Time Equivalency) is not a head count, but a calculation based on the September counts, summer school enrollment and resident additions and subtractions.

• The Parkview School District is currently experiencing declining enrollment, which has had an adverse affect on the revenue limit and the amount of state general aid the District receives.

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YearEnrollment

FTEYearly

Change

10-11 992 -4.71%

11-12 952 -4.03%

12-13 931 -2.21%

13-14 891 -4.30%

14-15* 870 -2.36%

Parkview School District Enrollment FTE History

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Parkview School DistrictOpen Enrollment

• In addition to declining enrollment, the Parkview School District also has more students enrolling out of the District than enrolling in through open enrollment.

• When a student who lives in a district decides to attend another district, the resident district must pay the other district open enrollment tuition for the student.

• Open enrollment tuition per student is $6,485.

• Estimating open enrollment numbers is difficult before the September count due to many different factors.

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Year OE In FTEOE Out

FTE

10-11 37.5 67.2

11-12 38.0 72.1

12-13 46.5 122.3

13-14 55.5 117.2

14-15* 56.0 124.0

Parkview School District General Fund Revenue

• It is projected that 90.73% of General Fund (Fund 10) revenue will come from state aid (53.16%) and local property taxes (37.57%).

• The other sources of revenue include open enrollment tuition, district fees, and federal grants.

• Only the tax levy for the General Fund is represented on this chart. The revenue from the referendum is credited to other funds (Fund 38 and 39).

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Parkview School District General Fund Expenses

• It is projected that 64.46% of general fund expenses will be from salaries and benefits for the General Fund (Fund 10).

• Purchased services include expenses for services to the District and open enrollment tuition.

• Other expenses include capital purchases, lease payments, fund transfers, dues and fees and insurance.

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Parkview School District General Fund Revenue and Expense

History

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Parkview School District Fund Balance

• Fund balance is not the same as a cash account, it is a combination of assets and liabilities.

• The actual cash in the bank is usually a lot lower during the year than the fund balance.

• If the fund balance drops below $2,000,000, the Parkview School District may need to short-term borrow to cover expenses before revenues come in.

• The fund balance % is the fund balance amount divided by expenses.

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YearEnding Balance

Fund Balance

%

10-11$2,661,344.

5722.92%

11-12$2,772,039.

8924.91%

12-13$2,528,348.

5923.69%

13-14$2,250,528.

6021.48%

14-15*$2,063,798.

3019.64%

Parkview School District Fund Balance History

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Parkview School DistrictCommunity Service Fund (Fund 80)

• Since there is enough fund balance in Fund 80 to pay for the expenses listed, the Parkview School District will not levy in Fund 80 for the 2014-2015 fiscal year.

• However, Act 20 still requires the District to report all expenses in Fund 80 for the fiscal year.

• The Community Service Fund (Fund 80) Summary will have a more detailed breakdown of the expenses for 2014-2015. This document can be found in the Annual Meeting packet and on the District website.

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Description Amount

Community LMC Staff

$4,300.00

Parkview Voice (Staffing and

Materials)$14,750.00

Summer Rec Program

$7,950.00

Community Sign $800.00

Total$27,800.0

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Contact Information

• Ben Irwin - Business Manager

• Email - birwin@email.parkview.k12.wi.us

• Phone - 608-879-2717 ext. 6114

• Office located in the Parkview Jr./Sr. High School Main Office

• A copy of this PowerPoint and other budget information can be found on the Parkview School District website under the Business Office link.

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