Swallow School District 2018-19 BUDGET HEARING August 22, 2018 - PowerPoint PPT Presentation

Swallow School District 2018-19 BUDGET HEARING August 22, 2018

Budget Development Timeline December 2017 through May 2018 ◦ Revenue estimates are developed based on projected enrollment and state budget ◦ Expenditure estimates are developed based on staffing, programming, and available revenue June ◦ Preliminary budget presented to the School Board July ◦ Preliminary budget approved by the School Board August ◦ Budget published ◦ Annual Meeting & Budget Hearing September and October ◦ Adjustments made based on September enrollment counts and property valuation Late October/Early November ◦ October 15 – State Equalization Aid certified by Wisconsin DPI ◦ October 29 – School Board final certification of the tax levy and budget

Factors Affecting 2018-19 Budget Enrollment ◦ Largest factor in school finance ◦ Resident enrollment is declining Changing Student Needs ◦ Moving from three sections to two ◦ Special education ◦ Open enrollment ◦ New math and science curriculum implementation Maintenance Needs ◦ Major expenses for long range maintenance needs ◦ Aging building – 1890s/1950s wing especially Price increases ◦ Inflation has recently accelerated

Revenue Formulas Revenue Property State Aid Limit Tax Levy Total Revenue Limit - State Equalization Aid = Local Property Taxes • When aid goes up, property taxes drop • When aid goes down, property taxes go up • Revenue Limit and Equalization Aid each have their own complex formulas

Membership & Enrollment Total Enrollment 700 600 500 400 300 200 100 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Resident Open Enrollment 2018-19 enrollment is an estimate

Membership & Enrollment Revenue Limit Membership 600 500 400 300 200 100 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2018-19 membership is an estimate

Total Revenue Limit Total Revenue Limit $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Tax Levy Equalization Aid 2018-19 Revenue Limit is an estimate

State Equalization Aid Equalization Aid and Membership $1,400,000 1,400 $1,200,000 1,200 $1,000,000 1,000 $800,000 800 $600,000 600 $400,000 400 $200,000 200 $0 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Equalization Aid Per Pupil Aid Aid Membership 2018-19 aid amounts are estimated

Property Taxes Tax Levy Under Revenue Limit $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2018-19 Levy is an estimate

District Equalized Value Equalized Value $880 $860 $840 $820 Millions $800 $780 $760 $740 $720 $700 $680 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2018-19 Equalized Value is an estimate

Tax Levy Calculation Local Property Tax Levy 2017-18 Actual 2018-19 Proposed % Change Fund 10 – General Fund $4,680,663 $4,584,247 Fund 39 – Debt Service 625,000 607,300 Fund 41 – Capital Expansion 250,000 225,000 Total Taxes $5,555,663 $5,416,547 -2.50% Mill Rate (Tax Rate per $1,000) $6.71 $6.38 -4.92% Equalized Value 827,747,651 848,441,342 2.50% 2018-19 amounts are estimates dependent upon enrollment, state aid, and equalized value certifications

Mill Rate (Tax Rate per $1,000) $7.50 $7.25 $7.30 $7.19 $7.18 $7.18 $7.10 $6.90 $6.71 $6.70 $6.50 $6.38 $6.30 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2018-19 Mill Rate is an estimate

Revenue Sources: Fund 10 $54,099 $550,580 Taxes and Local Sources 79% $681,403 State Sources 11% Open Enrollment Revenue 9% $4,717,547 Federal and Other Sources 1%

Annual Fund 10 Expenditures $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2014-15 2015-16 2016-17 2017-18 2018-19

Budgeted Expenditures by Function - Fund 10 $277,500 $222,500 Instruction - 52% Business Admin. & Central Services - 17% $421,721 Pupil & Instructional Services - 8% $484,485 General & Building Administration - 8% $506,855 $3,252,440 Special Education Transfer - 7% Instructional Service Payments - 4% $1,088,430 Insurance, Technology, & Other - 4%

Budgeted Expenditures by Object - Fund 10 $81,055 $74,500 Salaries - 47% $411,345 Purchased Services - 20% $421,721 Benefits - 17% $2,934,820 Special Education Transfer - 7% $1,101,495 Non-Capital Objects - 7% Insurance and Other - 1% $1,228,995 Capital Objects - 1%

Other Funds Audited Unaudited Budget SPECIAL PROJECTS FUND – Fund 21 & 27 2016-2017 2017-2018 2018-2019 Beginning Fund Balance 14,752.30 102,742.50 58,288.81 Ending Fund Balance 102,742.50 58,288.81 48,288.81 REVENUES & OTHER FINANCING SOURCES 632,959.14 623,417.92 684,808.00 EXPENDITURES & OTHER FINANCING USES 544,968.94 667,871.61 694,808.00 Audited Unaudited Budget DEBT SERVICE FUND – Fund 39 2016-2017 2017-2018 2018-2019 Beginning Fund Balance 105,630.41 20,033.97 14,592.17 Ending Fund Balance 20,033.97 14,592.17 14,592.17 REVENUES & OTHER FINANCING SOURCES 626,660.74 625,101.52 607,300.00 EXPENDITURES & OTHER FINANCING USES 712,257.18 630,543.32 607,300.00 Audited Unaudited Budget CAPITAL PROJECTS FUND – Fund 41 & 46 2016-2017 2017-2018 2018-2019 Beginning Fund Balance 334,406.71 396,372.40 652,258.45 Ending Fund Balance 396,372.40 652,258.45 877,758.45 REVENUES & OTHER FINANCING SOURCES 61,965.69 255,886.05 225,500.00 EXPENDITURES & OTHER FINANCING USES 0.00 0.00 0.00 Audited Unaudited Budget FOOD SERVICE FUND – Fund 50 2016-2017 2017-2018 2018-2019 Beginning Fund Balance 72,936.46 68,108.85 84,479.01 Ending Fund Balance 68,108.85 84,479.01 70,829.01 REVENUES & OTHER FINANCING SOURCES 160,236.19 144,744.56 145,000.00 EXPENDITURES & OTHER FINANCING USES 165,063.80 128,374.40 158,650.00

Fund Balance – General Fund 2016-17 Audited 2017-18 Unaudited 2018-19 Budget Committed Fund Balance – Retirement 39,000 38,000 38,000 Assigned Fund Balance – Technology 250,000 250,000 250,000 Assigned Fund Balance – Facilities 450,000 450,000 450,000 Unassigned Fund Balance 3,967,834 4,322,182 4,071,880 Total Fund Balance 4,706,834 5,060,182 4,809,880

2018-19 Budget Variables Yet-To-Be Certified Actual September Membership Count ◦ Occurs on third Friday of September Actual Apportionment of Equalized Value ◦ WI Dept. of Revenue certifies on October 1 Actual Apportionment of State Equalization Aid ◦ WI Dept. of Public Instruction certifies on October 15 Tax Levy ◦ Final approval occurs at October 29 board meeting

Future Challenges • Declining resident enrollment will continue to lead to reduced revenue, while inflation will increase operating costs. • Continuing reductions in state equalization aid will place a larger burden on district residents. • A shortage of qualified staff will lead to higher staffing costs. • The annual operating budget is incapable of keeping up with facility maintenance and capital improvement needs.