School District of Fort Atkinson Facilities Advisory Committee - PowerPoint PPT Presentation

School District of Fort Atkinson Facilities Advisory Committee December 17, 2019 BAIRD PUBLIC FINANCE Brian C. Brewer Managing Director 414.298.7030 bbrewer@rwbaird.com

U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MUNI] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm Key School Finance Concepts

Key School Finance Concept What is the Revenue Limit? Established in 1993 School District Operating • Revenue Composition Limits the amount of revenue a • (2019-20 Budget) school district can generate through the sources of state equalization aid and the local 14.4% property tax levy Driven by resident student • enrollment (FTE) The revenue limit generally 85.6% • comprises 75% - 95% of a school district’s operating revenue Revenue Limit Revenue All other operating revenue Page 1

Key School Finance Concept How is the Revenue Limit Authority Calculated? A district’s revenue limit authority is the maximum amount of revenue that may be raised through state general aid and property tax for the General, Non-Referendum Debt, and Capital Expansion Funds, also referred to as Funds 10, 38, and 41 respectively. Revenue District Per Pupil $ Limit Exemptions Membership Authority Page 2

Key School Finance Concept Revenue Limit Per Pupil Adjustments Fiscal Year Revenue Limit Per Pupil Increase Per Pupil Categorical Aid (Cumulative) (One-Time) 2007-08 $264.12 2008-09 $274.68 2009-10 $200.00 2010-11 $200.00 2011-12 -5.5%* 2012-13 $50.00 $50.00 (Prorated) 2013-14 $75.00 $75.00 2014-15 $75.00 $150.00 2015-16 $0 $150.00 2016-17 $0 $250.00 2017-18 $0 $450.00 2018-19 $0 $654.00 2019-20 $175.00 $742.00 2020-21 $179.00 $742.00 Page 3

Key School Finance Concept How is the Revenue Limit Levy Calculated? A district’s Revenue Limit Levy is the maximum Revenue Limit Authority minus State Equalization Aid. This amount represents the “local share” of the Revenue Limit Authority and becomes one of three components of the Total School Tax Levy to be collected through property tax. Page 4

Key School Finance Concept Composition of School Tax Levy Referendum Approved Debt Levy (Fund 39) Revenue Community Limit Levy Service Levy (Fund 10, 41, 38) (Fund 80) Total Tax Levy Page 5

Key School Finance Concept What are the Components of My School Tax Levy? Referendum Debt Levy $2,469,127 Community Revenue Limit Levy Service Levy $14,724,679 $0 Total Tax Levy $17,193,843 Page 6

Key School Finance Concept Total School Tax Levy Mill Rate Mill Rate: Total Levy/ Total Property Value per Property Taxes Thousand EXAMPLE CALCULATON: TOTAL LEVY OF SCHOOL: $17,193,843 *$1,000 TOTAL PROPERTY VALUE: $1,612,443,974 = $1,066 per year on my $100,000 home $10.66 Mill Rate OR $1,066 on $100,000 Home Page 7

U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MUNI] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm Fort Atkinson Financial Trends

Revenue Limit Maximum Revenue / Member (Does not include exemptions) $12,000 $300 $200 $200 $175 $200 $10,000 $75 $75 $50 $100 RL Max Revenue/Member $0 $0 $0 $0 $8,000 $0 -$100 $6,000 -$200 $4,000 -$300 -$400 $2,000 -$544 -$500 $0 -$600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - State - Fort Atkinson Increase - Fort Atkinson _____________________ Source: Department of Public Instruction Page 8

Current Year Average FTE 3000 2728 2772 2797 2835 2852 2836 2809 2784 2782 2768 2744 2709 2678 2646 2605 2559 2500 2000 1500 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 _____________________ Source: Department of Public Instruction Page 9

Revenue Limit with All Exemptions $35,000,000 $31,124,858 $31,384,021 $31,953,810 $29,374,410 $29,408,896 $29,289,845 $30,000,000 $27,161,673 $28,192,848 $26,906,565 $27,406,494 $28,039,235 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Base RL PY Carryover TOS Reorg Fed Imp Aid Loss RR NR Ref Dec Enroll Other NR EEE Hold Harmless Ref/Rec Taxes PY OE Voucher Env Remediation Ineligible F80 _____________________ Source: Department of Public Instruction Page 10

Revenue Limit - EQ Aid: Levy Ratio $35,000,000 58% 57.37% 57% $30,000,000 56.43% 56.24% 55.86% 55.64% 56% $25,000,000 55.09% 55% Allowable RL Levy 54.23% $20,000,000 53.92% Aid % 53.71% 53.65% 54% $15,000,000 52.93% 53% $10,000,000 52% $5,000,000 51% $0 50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenue Limit Levy EQ Aid + High Poverty Aid EQ Aid as a % of RL _____________________ Source: Department of Public Instruction Page 11

TID Out Equalized Value $1,800,000,000 8.00% 5.99% $1,600,000,000 6.00% $1,400,000,000 3.39% 3.73% 4.00% 3.10% 2.77% $1,200,000,000 2.00% $1,000,000,000 0.25% 0.00% $800,000,000 0.00% -1.61% -1.97% $600,000,000 -2.71% -2.00% $400,000,000 -3.68% -4.00% $200,000,000 $- -6.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TIFOUT % Change YoY _____________________ Source: Department of Public Instruction Page 12

Total School Tax Levy Mill Rate $11.37 $12.00 $11.15 $11.07 $10.99 $10.90 $10.85 $10.70 $10.66 $10.48 $10.36 $9.70 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 F80 Rate $0.00 $0.04 $0.04 $0.04 $0.04 $0.04 $0.02 $0.02 $0.00 $0.00 $0.00 Prop Tax Chrgbk/Other $0.00 $0.00 $0.01 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 F39 Rate $1.72 $1.79 $1.82 $2.34 $2.43 $1.47 $1.42 $1.93 $0.56 $1.04 $1.53 RL Rate - F41 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 RL Rate - F38 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 RL Rate - F10 $7.97 $8.86 $8.98 $8.76 $8.90 $9.39 $9.56 $9.12 $9.80 $9.44 $9.13 Total Mill Rate $9.70 $10.70 $10.85 $11.15 $11.37 $10.90 $10.99 $11.07 $10.36 $10.48 $10.66 _____________________ Source: Department of Public Instruction Page 13

Revenue and Expenditure Detail Fund 10 Audited Actuals $38,000,000 $36,000,000 $34,000,000 $32,000,000 $30,000,000 $28,000,000 $26,000,000 2014 2015 2016 2017 2018 2019 Revenues Expenditures _____________________ Source: Department of Public Instruction Page 14

Fund Balance as a % of General Fund Expenditures $40,000,000 100.00% $36,445,381 $34,612,814 90.00% $35,000,000 $33,033,495 $32,695,967 $31,375,119 $30,667,371 80.00% $30,000,000 70.00% $25,000,000 60.00% $20,000,000 50.00% 40.00% $15,000,000 33.14% 32.30% 31.79% 31.81% 30.00% 29.50% 26.47% $10,000,000 20.00% $5,000,000 10.00% $0 0.00% 2014 2015 2016 2017 2018 2019 Expenditures Fund Balance Fund Balance as a % of General Fund Expenditures _____________________ Source: Department of Public Instruction Page 15

U:\NON_IB_FOLDERS\Fixed Income_Public Finance\[MUNI] FICM Pitchbook - 2018_110918.pptx 11/9/18 12:21 pm Facility Funding Options

First Thing’s First… Facility Study Evaluate current facilities, • conditions, utilization and future facility needs Monitor and refine facility • standards for instructional and support programs Build out district master facility • plan Execute study and survey of all • facilities Page 16

We Know What We Need… Funding! Page 17

What Type of Project(s) Are We Dealing With? Major Capital Projects Maintenance Projects Page 18

What Are Your Facility Priorities? Maintenance Projects • Smaller dollar cost • Often paid with operational funds • Boiler Carpet, painting, minor plumbing • repair, lighting replacement (bulbs) Capital Project • Larger dollar cost • Longer useful life • Typically paid for with debt proceeds • Authority Needed • Referendum • Budget $ pays debt • Page 19

Capital Project Funding Options Operational Funds Annual Budget Borrowed Funds Fund 41 & 46 Revenue Limit Borrowing Fund Balance Referendum Borrowing Page 20

Which Operational Fund? Fund 46 – Long Term Capital Fund 41 - Capital Expansion Fund Improvement Trust Type of Project Used for any projects on 10-year Capital Buildings/sites, no equipment Improvement Plan (including equipment) State Statute 120.137 120.10(10m) Aid to District Positive aided districts can benefit – Deposits Negative aided districts can benefit included in shared costs Approval By Board Resolution by June 30 to create trust Annual Meeting fund Requirements 10 year Capital Improvement Plan Levy within the revenue limit - beginning of the  fiscal year Access funds 5 years after established  Decision at end of Fiscal Year  Expenditures Not included as Shared Costs for aid purposes Amortized over the number of years the district has levied into the fund for calculation of shared costs for aid purposes Page 21

Possible Funding Sources for Capital Projects Operating Budget • Competes for revenue limit dollars • Competes for revenue limit dollars Non-Referendum Debt • Competes for revenue limit dollars • Competes for revenue limit dollars Referendum – Operational/Debt • New source of funds • New source of funds Page 22