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SB Finances

SB Finances. SBSD Finances Are we that much different?

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Page 1: SB Finances. SBSD Finances Are we that much different?

SB Finances

Page 2: SB Finances. SBSD Finances Are we that much different?

SBSD Finances

•Are we that much different?

Page 3: SB Finances. SBSD Finances Are we that much different?

SBSD Finances

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

Page 4: SB Finances. SBSD Finances Are we that much different?

SBSD Finances

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

•What/Who is Responsible?

Page 5: SB Finances. SBSD Finances Are we that much different?

SBSD Finances

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

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

Page 6: SB Finances. SBSD Finances Are we that much different?

Are We That Much Different?

Page 7: SB Finances. SBSD Finances Are we that much different?

Are We That Much Different?

• Yes and No

Page 8: SB Finances. SBSD Finances Are we that much different?

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.

Page 9: SB Finances. SBSD Finances Are we that much different?

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.

Page 10: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

• 1. Increased Revenue Limit

Page 11: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

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

$9,100.00.

Page 12: SB Finances. SBSD Finances Are we that much different?

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.

Page 13: SB Finances. SBSD Finances Are we that much different?

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

Page 14: SB Finances. SBSD Finances Are we that much different?

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.

Page 15: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

• 2. OPEB DEBT

Page 16: SB Finances. SBSD Finances Are we that much different?

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.

Page 17: SB Finances. SBSD Finances Are we that much different?

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

Page 18: SB Finances. SBSD Finances Are we that much different?

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.

Page 19: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

3. Health Insurance Premium Management

Page 20: SB Finances. SBSD Finances Are we that much different?

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.

Page 21: SB Finances. SBSD Finances Are we that much different?

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.

Page 22: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

• 4. Reduction in Energy Costs

Page 23: SB Finances. SBSD Finances Are we that much different?

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.

Page 24: SB Finances. SBSD Finances Are we that much different?

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.

Page 25: SB Finances. SBSD Finances Are we that much different?

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.

Page 26: SB Finances. SBSD Finances Are we that much different?

How Did We Get Here?

• 5. Maintenance and Cleaning Staff

Page 27: SB Finances. SBSD Finances Are we that much different?

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

Page 28: SB Finances. SBSD Finances Are we that much different?

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.

Page 29: SB Finances. SBSD Finances Are we that much different?

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.

Page 30: SB Finances. SBSD Finances Are we that much different?

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.

Page 31: SB Finances. SBSD Finances Are we that much different?

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.

Page 32: SB Finances. SBSD Finances Are we that much different?

Who/What is Responsible?

Page 33: SB Finances. SBSD Finances Are we that much different?

Who/What is responsible?

• 1. Was it Act 10? Yes and No

Page 34: SB Finances. SBSD Finances Are we that much different?

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.

Page 35: SB Finances. SBSD Finances Are we that much different?

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.

Page 36: SB Finances. SBSD Finances Are we that much different?

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.

Page 37: SB Finances. SBSD Finances Are we that much different?

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.

Page 38: SB Finances. SBSD Finances Are we that much different?

What do we spend our Money On?

Page 39: SB Finances. SBSD Finances Are we that much different?

What do we spend our Money On?

• 1. Professional Development

Page 40: SB Finances. SBSD Finances Are we that much different?

What do we spend our Money On?

• 1. Professional Development• 2. Instructional Leadership

Page 41: SB Finances. SBSD Finances Are we that much different?

What do we spend our Money On?

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

Page 42: SB Finances. SBSD Finances Are we that much different?

What do we spend our Money On?

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

Page 43: SB Finances. SBSD Finances Are we that much different?

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

Page 44: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

Page 45: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

health care costs while maintaining a similar level of benefit.

Page 46: SB Finances. SBSD Finances Are we that much different?

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.

Page 47: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 48: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 49: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 50: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 51: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 52: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 53: SB Finances. SBSD Finances Are we that much different?

Can This Continue?

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

Page 54: SB Finances. SBSD Finances Are we that much different?

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

Page 55: SB Finances. SBSD Finances Are we that much different?

Questions?

• ??