10 YEAR FINANCIAL PLAN REVIEW AGENDA Mission/District Goals - - PowerPoint PPT Presentation

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10 YEAR FINANCIAL PLAN REVIEW AGENDA Mission/District Goals - - PowerPoint PPT Presentation

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Planning for Our Future 10 YEAR FINANCIAL PLAN REVIEW AGENDA Mission/District Goals Operational Plan....Boone Hall FY11 Financial ActivityTim Dettwiller The

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10 YEAR FINANCIAL PLAN REVIEW

Planning for Our Future

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AGENDA

 Mission/District Goals  Operational Plan…………….………...Boone Hall  FY11 Financial Activity………………Tim Dettwiller  The Forecast…………………………….Tim Dettwiller  The Proposed Plan………….………..Tim Dettwiller  Permanent Improvement Fund…..All  Future Focus Groups……..………….Boone Hall  Timelines………………………………….Boone Hall  Q & A………………………………………..All  Adjourn

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SLIDE 3

DISTRICT MISSION

Our mission is to provide the best opportunity for each student to become successful in higher learning and become productive, contributing, responsible citizens, thus enabling them to realize their full potential as citizens of their community and the world.

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DISTRICT GOALS

1. To promote a safe, healthy, state of the art environment in which to learn. 2. To maintain fiscal accountability through the best utilization of resources provided. 3. To increase student achievement in academics, arts and athletics to the highest level possible. 4. To develop effective communication programs to keep the community informed. 5. To provide resources, guidance and opportunities for staff and students to achieve in the 21st century.

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DISTRICT OVERVIEW

Mission Statement

District Goals

Operational Plan

Financial Plan

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SLIDE 6

OPERATIONAL PLAN

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SLIDE 7

THE OPERATIONAL PLAN

The Operational Plan consists of the programs

  • ffered in our schools along with the personnel

and facilities needed to deliver them.

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SLIDE 8

THE DISTRICTS OPERATIONS

 Students – 1,282  Teachers - 96  Administrators - 10  Bus Drivers – 20  Support Staff – 45  Sports - 13  Student Activities - 27  Buildings – 6  Courses of Study – 12 (High School)  Cafeterias - 2

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SLIDE 9

FINANCIAL ACTIVITY

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GENERAL FUND ACTIVITY – FY11

July 1, 2010 Balance REVENUES EXPENDITURES RESERVATIONS June 30, 2011 Balance

$8,948,705 $14,863,941 $14,193,149 $929,965 $8,689,532

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SLIDE 11

REVENUES - FY11

STATE FUNDING $6,148,454 46% LOCAL TAXES $6,212,414 47% OTHER $947,087 7%

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SLIDE 12

EXPENDITURES - FY11

SALARIES $7,507,022 57% BENEFITS $2,675,956 20%

Purchased Services $1,930,198 15%

Supplies & Materials $492,251 4% Capital Outlay $226,345 2% Debt $32,661 0% Other $344,179 2%

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OPERATIONS – FY11

INSTRUCTION - $7.8 million 59% FACILITIES - $931K 7% BUSSING - $923K 7%

DEBT

EXTRACURRICULARS - $349K 3%

SUPPORTING SERVICES - $2.84 million 22% TECHNOLOGY - $330K 2%

Services Provided % is of Total General Fund Expenditures

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FY11 OPERATIONS - DETAILED

FACILITIES - 100% REGULAR Instruction - 86% BUSSING - 100% SPECIAL ED. Instruction 9%

VOCATIONAL Instruction 5%

GIF DEB

AUDIT & ELECTION - 1%

ACADEMIC ACTIVITIES - 22%

AIDES - 8% SPEECH, OT, PT, ATTENDANCE 5% LIBRARY - 4%

TUITION /TRAIN - 1% N U R S E

  • 4

% PRINCIPAL OFFICES -

28% ATHLETICS - 78%

BOARD & LEGAL - 3%

SP ED & CURR - 6% TREASURER OFFICE - 11% GUIDANCE - 6%

AUDITOR &

TREAS FEES- 5%

TECHNOLOGY - 100%

  • SUPT. OFFICE -

7% PSYCH - 3% 14

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THE FORECAST

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THE FORECAST

ACTUAL AND FORECASTED OPERATING FUND 10 YEAR FORECAST

5 Year Forecast LONG RANGE FORECAST

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 10 YEAR

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

TOTALS Revenue: General Property Tax (Real Estate) 6,187,667 6,196,905 5,564,033 5,071,101 5,119,852 5,145,451 5,171,179 5,197,035 5,223,020 5,249,135 54,125,377 Tangible Personal Property Tax 25,082 26,065 26,065 26,065 26,065 26,065 26,065 26,065 26,065 26,065 259,668 Unrestricted Grants-in-Aid 4,515,207 4,561,973 4,585,166 4,608,443 4,631,844 4,631,844 4,631,844 4,631,844 4,631,844 4,631,844 46,061,853 Restricted Grants-in-Aid 73,901 73,015 73,000 73,000 73,000 73,000 73,000 73,000 73,000 73,000 730,916 Property Tax Allocation 1,484,605 1,236,969 1,161,716 1,104,158 1,110,828 1,018,829 934,448 857,057 786,074 720,971 10,415,655 All Other Revenues 980,521 990,327 1,000,230 1,002,232 1,007,553 1,020,171 1,032,946 1,045,881 1,058,978 1,072,240 10,211,079 Total Revenues 13,266,984 13,085,253 12,410,210 11,884,999 11,969,143 11,915,360 11,869,482 11,830,881 11,798,982 11,773,255 121,804,549 Other Financing Sources: All Other Financing Sources 18,000 18,000 19,000 19,000 20,000 20,000 20,000 20,000 20,000 20,000 194,000 Total Other Financing Sources 18,000 18,000 19,000 19,000 20,000 20,000 20,000 20,000 20,000 20,000 194,000 Total Revenues and Other Financing Sources 13,284,984 13,103,253 12,429,210 11,903,999 11,989,143 11,935,360 11,889,482 11,850,881 11,818,982 11,793,255 121,998,549 Expenditures: Personal Services 7,404,299 7,696,336 7,906,341 8,143,531 8,387,837 8,577,477 8,771,404 8,969,715 9,172,510 9,379,890 84,409,340 Employees' Retirement/Insurance Benefits 2,797,542 3,035,105 3,273,019 3,539,833 3,834,886 4,121,440 4,429,405 4,760,382 5,116,091 5,498,380 40,406,083 Purchased Services 1,836,994 1,855,364 1,873,918 1,892,657 1,908,862 1,927,950 1,947,230 1,966,702 1,986,369 2,006,233 19,202,279 Supplies and Materials 452,096 461,138 470,361 479,768 489,363 499,151 509,134 519,316 529,703 540,297 4,950,325 Capital Outlay 215,872 220,189 224,593 229,085 233,667 238,340 243,107 247,969 252,928 257,987 2,363,737 Principal-All (History Only) Principal-Notes 2,100,000 2,100,000 Principal-HB 264 Loans 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 250,000 Interest and Fiscal Charges 6,680 5,661 4,642 4,000 3,800 3,307 2,878 2,504 2,179 1,896 37,547 Other Objects 351,063 358,084 365,246 372,550 380,001 387,601 395,353 403,261 411,326 419,552 3,844,037 Total Expenditures 15,189,546 13,656,877 14,143,119 14,686,424 15,263,417 15,780,265 16,323,510 16,894,850 17,496,107 18,129,235 157,563,349 Other Financing Uses Advances-Out 45,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 All Other Financing Uses Total Other Financing Uses 45,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 Total Expenditures and Other Financing Uses 15,234,546 13,671,877 14,158,119 14,701,424 15,278,417 15,795,265 16,338,510 16,909,850 17,511,107 18,144,235 157,743,349 Excess of Rev & Other Financing Sources over (under) Expenditures and Other Financing Uses
  • 1,949,562
  • 568,624
  • 1,728,909
  • 2,797,425
  • 3,289,274 -3,859,906
  • 4,449,028
  • 5,058,968
  • 5,692,125
  • 6,350,981
Cash Balance July 1 - Excl Proposed Renewal/ Replacement and New Levies 9,619,497 7,669,935 7,101,311 5,372,403 2,574,978
  • 714,296
  • 4,574,201
  • 9,023,229
  • 14,082,198
  • 19,774,323
Cash Balance June 30 7,669,935 7,101,311 5,372,403 2,574,978
  • 714,296 -4,574,201
  • 9,023,229
  • 14,082,198
  • 19,774,323
  • 26,125,303
Estimated Encumbrances June 30 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000 1,250,000 Reservation of Fund Balance Textbooks and Instructional Materials 5,000 5,000 Capital Improvements 25,000 25,000 Budget Reserve 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Bus Purchases Subtotal 530,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 530,000 Fund Balance June 30 for Certification
  • f Appropriations
7,014,935 6,476,311 4,747,403 1,949,978
  • 1,339,296 -5,199,201
  • 9,648,229
  • 14,707,198
  • 20,399,323
  • 26,750,303
Rev from Replacement/Renewal Levies Property Tax - Renewal or Replacement 724,444 1,338,154 1,341,706 1,341,706 1,341,706 1,341,706 1,341,706 1,341,706 10,112,836 Cumulative Balance of Replacement/Renewal Levies 724,444 2,062,599 3,404,305 4,746,011 6,087,718 7,429,424 8,771,130 10,112,836 Fund Balance June 30 for Certification
  • f Contracts, Salary and Other Obligations
7,014,935 6,476,311 5,471,847 4,012,577 2,065,009
  • 453,190
  • 3,560,512
  • 7,277,774
  • 11,628,193
  • 16,637,467

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$7,014,935 $(16,637,467)

  • $18,000,000
  • $14,000,000
  • $10,000,000
  • $6,000,000
  • $2,000,000

$2,000,000 $6,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

FORECASTED ENDING BALANCES

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13,114,961 18,129,235

$12,000,000 $13,000,000 $14,000,000 $15,000,000 $16,000,000 $17,000,000 $18,000,000 $19,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

REVENUES EXPENDITURES

$ 5 M i l l i

  • n

THE FORECAST

Includes $2.1 M Note Payoff

$1.9 Million 18

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FORMUL MULA FORECAS RECAST VARIANC IANCE July 1, 2011 Fund Balance $ 8,700,000 $ 8,700,000 Revenues 2012–2021 $132,000,000 $132,000,000 Expenditures 2012-2021 $138,700,000 $157,600,000 $-18,800,000 Ending Balance 2021 $ 2,000,000 $ -16,800,000

THE FORMULA

The Formula Shows that we are Forecasted to Spend $18.8 Million More than we can afford.

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THE PROPOSED FINANCIAL PLAN

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THE PLAN PROCESS

 Identify long range financial issues  Consider all Options

 Revenues, Spending, Program Evaluation

 Gain Community Input  Develop a plan  Communicate

Communicate

Communicate

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THE PLAN

The 10 Year Plan Will Provide the Following:

 Transparent Financial Planning  Academics Will Become Focus of School, Not $’s  Stable Financial Foundation  Staff Recruitment Ability

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“YOU NEED TO KNOW”

WHAT IS A MILL? Local tax rates against property are computed in Mills. A “Mill” is one-tenth of a penny. 1 Mill generates the following:

Assessed Tax Value 1 Mill Income $ 1,000 X 0.001 = $ 1 $ 100,000 X 0.001 = $ 100 $ 1,000,000 X 0.001 = $ 1,000

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WHAT IS THE 20 MILL FLOOR? HB920 effectively freezes tax collections at the dollar amount collected the first year the tax went into effect. As property values rise through reappraisals the effective millage rate is reduced. This reduction is called the Tax Reduction Factor Tax reduction factors are designed to prevent a school from realizing additional revenue from increases in the value of real property. The law specifies that the application of the tax reduction factor cannot cause a school district’s effective tax rate to fall below 20

  • mills. This is referred to as the 20

20-mill mill floor.

“YOU NEED TO KNOW”

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“YOU NEED TO KNOW”

WHAT IS THE 20 MILL FLOOR?

To reach the floor districts can use emergency levy’s and/or income taxes because they do not count toward the floor. Once at the Floor School districts can receive additional revenues from the following sources:

  • Inflationary increases in Real Estate and Agricultural

property

  • Additions to the tax rolls (new construction).

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“YOU NEED TO KNOW”

$60,000,000 $100,000,000 $140,000,000 $180,000,000 $220,000,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Res./Ag. Property Values

20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Tax Rates

HB920 EFFECT ON M-P TAX RATES

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THE PLAN – REVENUE ENHANCEMENTS

CURRENT AGRI. USE VALUE (CAUV)

The State of Ohio increased the CAUV on all Ag. Property in Madison County.

The District will see an increase in tax revenues of

$1.8 1.8 Million lion over the next 10 years.

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THE PLAN – REVENUE ENHANCEMENTS

MAY 2005 was the Last Time the Community Supported an Increase in Taxes

8 Mill Current Operations Levy (Currently Rolled Back to 5.6Mills)

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THE PLAN – REVENUE ENHANCEMENTS

LEVY #1

EMERGENCY OPERATING LEVY

May 2013 8 Mills (Effective New Mills = 2.4) Allow Current 5.6. mill Levy to Expire 8 Years (Expires 12/31/21) Homeowner Impact:

$200,000 MV Home $70,000 Assessed Value (35% of MV) $70,000 x .0024 =$168 Annual Increase

10 Year r Increase ease in Dist strict rict Revenues nues = $ $3.2M

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THE PLAN – REVENUE ENHANCEMENTS

LEVY #2

EMERGENCY OPERATING LEVY

May 2016 2.5 Mills 5 Years (Expires 12/31/21) Homeowner Impact:

$200,000 MV Home $70,000 Assessed Value $70,000 x .025 =$175 Annual Increase

10 Year r Increas ease e in Dist strict rict Revenu nues es = $ $3.4 M

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THE PLAN – REVENUE ENHANCEMENTS

20 MILL FLOOR

By utilizing Emergency Operating Levy’s the District will move to the 20 mill floor. Moving to the Floor means the district will see annual increases in tax revenue on the first 20 mills.

10 Year r Dist strict rict Revenu nue Increase rease = $1. 1.4 Million* lion*

(*Ass ssum umes es growth th in Residenti ntial Ag. V Values over next t 10 years) s)

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THE PLAN - BUDGET REDUCTIONS

“FORECAST” SALARIES & WAGES “THE PLAN” SALARIES & WAGES

10 Year Total Payroll=$84.4 Million Current Forecast Models a 1% Base increase and an Avg. step (Longevity Pay) of 2% per year.

10 Year r Pa Pay Increase ease Cost st = $ $12.7 Milli lion

Merit Pay Stipend System Base increase Driven by District Performance

10 Year r Savings ngs = $3.3 Milli lion

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THE PLAN – BUDGET REDUCTIONS

“FORECAST” BENEFITS “THE PLAN” BENEFITS

Current Forecast Models an average increase in Medical/Drug Insurance Premiums of 12% per year 10 Year Cost = $12.8 Million Reduce Cost through the following:

  • Plan Design Changes
  • Wellness program
  • Increase Cost Share on

Employee

 Current Split is 80/20

10 Year Savings = $5.1Million

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13,114,961 18,129,235 $12,000,000 $13,000,000 $14,000,000 $15,000,000 $16,000,000 $17,000,000 $18,000,000 $19,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 REVENUES EXPENDITURES 13,114,961 18,129,235 14,994,851 17,178,285

$12,000,000 $13,000,000 $14,000,000 $15,000,000 $16,000,000 $17,000,000 $18,000,000 $19,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

FORECAST vs THE PLAN

REVENUES FORECASTED EXPENDITURES FORECASTED PLAN REVENUES PLAN EXPENDITURES

THE PLAN - IMPACT

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FORECAST VS PLAN ENDING BALANCES

$(16,637,467) $2,231,964

  • $18,000,000
  • $13,000,000
  • $8,000,000
  • $3,000,000

$2,000,000 $7,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FORECAST PLAN 35

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THE PLAN - SUMMARY

 Plan Duration – 10 Years  Eliminate 5.6 Mill Current Op. Levy  Add 8 Mill (2.4 Effective) Em. Op. Levy – 8 Years  Add 2.5 Mill Em. Op. Levy – 5 Years  Reduce Projected Salaries $3.3 Million  Reduce Projected Insurance $5.1 Million  Communicate

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PERMANENT IMPROVEMENT FUND

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THE PI FUND

 Past uses

 New Elementary and Junior High Buildings $1,022,507  Building Repairs

$ 6,500

 New Scoreboards

$ 14,000

 Sewage Plant & HVAC Repairs

$ 10,500

 Auditor & Treasurer Fees

$ 12,254

 Football Field Upgrade

$ 19,875

 Woodworking Machine

$ 4,300

 Library & Classroom Textbooks

$ 4,468

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THE PI FUND

The levy was renewed in 2007 Voted Tax Rate = 2.5 Mills Effective Tax Rate = 1.25 Mills Annual Revenues are $335,000

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THE PI FUND

REPLACEMENT LEVY Our Intent is to ask the community to replace the expiring PI Levy. Replacing the PI Levy will bring the tax rate up from the current effective rate of 1.2 1.25 mills to the original voted rate of 2.5 .5 mills.

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THE PI FUND

IF A PI REPLACEMENT

Homeowner Impact:

$200,000 MV Home $70,000 Assessed Value $70,000 x .0025 = $175.00 Tax Bill Tax increase = $87.50

District Revenues = $613,662K District Increase = $278,662K

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PI FUND NEEDS

 Facility Upgrades

 Roofs, Doors, HVAC, Windows

 Energy Efficiency Improvements

 Renewable Energy Sources

 Common Space Improvements

 Lunchrooms, Auditorium, Gyms

 Technology Acquisitions

 iPads, Servers

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TIMELINE

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LEVY TIMELINES

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 PERMANENT IMPROVEMENT 2.5 Mill Replacement 5 Years Passed 2.5 Mill Renewal 5 Years Passed 2.5 Mill Renewal 5 Years Passed 2.5 Mill Replacement Proposed OPERATING LEVY 8 Mill 3 years Passed 8 Mill Renewal 3 years Passed 8 Mill Renewal 3 Years Passed EMERGENCY OP LEVY 8 Mill 8 Year Proposed 2.5 Mill 5 Year Proposed Collection Period Collection Period Collection Period Collection Period Collection Period Collection Period Collection Period Collection Period Collection Period

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TIMELINE

2012 •Union Negotiations

2013 •PI Levy Expires December 31 2017 •General Fund goes in the RED 2021 •General Fund Balance = $-16,800,000

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2014 •Operating levy Expires December 31

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PROPOSED TIMELINE

2012

  • April - Implement 10 Year Financial Plan
  • August - Settle Negotiations
  • November – Replace PI Levy

2013

  • November – Pass 8 Mill Emergency Operating levy
  • December - Remove Current Op Levy

2016

  • January – Revisit Financial Plan as Needed
  • May – Pass 2.5 Mill Emergency Operating Levy

2017 •General Fund Balance in the BLACK

CK

2021 •General Fund Balance = $2,694,800

94,800

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SLIDE 47

FOCUS GROUPS

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SLIDE 48

MPAC (MADISON-PLAINS ADVISORY COUNCIL)

FACILITIES PLANNING TEAM This Group will work with the Administration in planning, designing, funding and building new facilities FINANCIAL PLANNING TEAM This group will work with the administration to finalize and monitor the 10 Year Financial Plan. SUPERINTENDENTS ADVISORY TEAM This group will work with the Superintendent to evaluate programs, review budgets and to disseminate results to our community.

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