2017-18 Public Budget Hearing Sheboygan Area School District - - PowerPoint PPT Presentation

2017-18 Public Budget Hearing

Sheboygan Area School District October 24, 2017

Revenue Cap Limits

• Revenue caps limit the revenue a school district

can generate between general state aid and local tax levies

• Revenue caps are driven by a state formula which

multiplies a 3-year enrollment average by a per pupil revenue amount

SASD 3-year resident enrollment avg. = 10,241 State determined per pupil revenue amount = $10,437.35

Year-to-Year Comparison

Equalized Property Valuation $3,296,591,598 $3,447,941,862 +4.59% General State Aid $75,910,779 $77,292,960 +1.82% 3rd Friday Sept. Student FTE 10,162 10,163 +0.01% 3-Year Membership Average 10,203 10,241 +0.37% Revenue Per Member $10,437 $10,437 0.00% (+$250 Categorical Aid) (+$450 Categorical Aid) Total Increase: 1.87%

2016-17 2017-18

Equalized Property Valuation History

+4.59% +3.48%

• 0.75% -3.65%
• 2.24%
• 2.43% -1.70%
• 0.33% -1.26%
• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

+0.29%

Property Values Per Student A Key Factor in Determining State Aid

Because the SASD value per student is below the State average, the District receives a higher percentage of Equalization Aid from the State.

71% of the funding under the revenue cap is from state aid. 29% of the funding under the revenue cap is from local tax levy

Revenue From Local Property Tax and General State Aid Are Not Allowed to Exceed the Revenue Limit

$108,243,517 2017-18 Total Revenue Cap Local Property Tax General State Aid 29% $30,950,577 71% $77,292,960

General State Aid History

$ 75,910,779 $ 77,292,960 $ 74,631,304 $ 72,084,534 $ 69,535,461 $ 64,489,885 $ 66,720,957 $ 68,597,961

$10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000

State Aid

+5.68%

• 3.41%
• 7.26%

+3.46% +2.81%

• 0.32%

+5.17% +5.55%

$ 68,379,778 $ 71,916,266

• 3.54%

+1.82%

District’s 3-Year Average Resident Membership Used for the Revenue Cap Calculation

2015-16 2016-17 2017-18 2013 10,095 2014 10,116 10,116 2015 10,265 10,265 10,265 2016 10,227 10,227 2017 10,231 3-Year Average 10,159 10,203 10,241

Enrollment Trends Total Resident FTE Membership

9,500 9,600 9,700 9,800 9,900 10,000 10,100 10,200 10,300 10,400 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

10,227 10,105 10,095 10,116 9,870 10,231 9,978 9,863 9,835 10,265

2017-18 General and Special Education Expense Budget by Function

Instruction 62% Support 30% Non-Program Transactions 8%

2015-16 DPI Comparative Cost

Instruction Pupil/Staff /Sup Oper/ Admin/ Other Transp Costs Facility Costs Food & Comm Serv Costs Instruction Pupil/Staff/ Sup Oper/ Admin/ Other Transp Costs Facility Costs Food & Comm Serv Costs

SASD State

SASD State Instruction 62% 54% Pupil/Staff/Support 7% 9% Oper/Admin/Other 19% 21% Transportation Costs 2% 4% Facility Costs 6% 7% Food & Comm Serv Costs 4% 5% TOTALS 100% 100%

2017-18 General and Special Education Expense Budget by Object

Salaries/Benefits 80% Purchased Services 14% Supplies and Equipment 5% Insurance, Other 1%

Summary of All Budgets – 2017-18

Grand Total Budgets $167,842,049 Governmental Funds $161,580,652

General & Special Ed Funds $125,784,267 Special Project Funds $449,100 Debt Service Funds $15,458,327 Capital Projects Funds $19,888,958 Community Service Fund $2,022,641 Food Service Fund $4,238,756

Proprietary Funds $6,261,397

Summary Budgets For All Funds:

5-year Trend

Actual Expenditures 2013-14 Actual Expenditures 2014-15 Actual Expenditures 2015-16 Unaudited Expenditures 2016-17 Proposed Budget 2017-18 % Change Over 5-Year Summary Instructional $112,498,086 $118,343,773 $121,100,812 $124,644,517 $125,784,267 +11.8% Special Services $740,809 $609,978 $603,439 $460,678 $449,100

• 39.4%

Debt Service $9,500,636 $6,991,739 $4,992,788 $14,063,322 $15,458,327 +62.7% Capital Projects $1,323,824 $1,015,986 $2,209,168 $4,834,628 $19,888,958 +1,402.4% Food Services $3,150,130 $3,769,240 $3,819,708 $4,342,691 $4,238,756 +34.6% Recreation Department $1,951,822 $1,905,538 $1,974,620 $2,133,756 $2,022,641 +3.6% Total - All $129,165,307 $132,636,254 $134,781,535 $150,479,592 $167,842,049 +29.9%

District Debt Service

• As of 6-30-17 we have eight bonds with

maturity schedules from 2017-2037

• As of 6-30-17 we have $47,298,000 in

remaining long-term bonded debt

• Statute allows 10% of the $3,447,941,862

district equalized value

School District’s Legal Debt Capacity: $344,794,186

(10% of $3.45 Billion Equalized Property Valuation)

Total Debt Incurred: $47,298,000 13.7% Unused Debt Capacity: $297,496,186 86.3%

Where does that leave us today?

2016-17 Actuals Proposed 2017-18 Budget Revenue Limit $106,956,111 $108,243,517 Equalized Valuation $3,296,591,598 $3,447,941,862 General State Aid $75,910,779 $77,292,960 General State Aid Increase +1.82% Tax Levy $35,898,861 $35,896,191 Levy Decrease

• $2,670

Levy Decrease

• 0.01%

Mill Rate – Per $1,000 $10.89 $10.41 Mill Rate Decrease

• $0.48

Mill Rate Decrease

• 4.41%

2017-18 Budget & Tax Levy

Instructional Funds $125,784,267 $27,899,518 Special Project Funds 449,100 Referendum Approved Debt Service 13,784,863 3,909,318 Non-Referendum Debt Service 1,673,464 1,614,827 Capital Project Funds 19,888,958 1,200,000 Food Service 4,238,756 Recreation 2,022,641 1,272,528 Totals: $167,842,049 $35,896,191 % Change +11.58%

• 0.01%

2016-17 Expenditures/Levy $150,428,253 $35,898,861 Budget Tax Levy

Tax Levy Statement

TAX LEVIES

General Fund Debt Service Capital Expansion Community Service Total Tax Levy Percent Change

2017-18 27,899,518 $5,524,145 $1,200,000 $1,272,528 $35,896,191

• 0.01%

2016-17 28,098,964 5,427,368 1,100,000 1,272,528 35,898,861

• 8.08%

2015-16 31,779,003 4,952,073 1,050,000 1,272,528 39,053,604

• 3.66%

2014-15 34,281,926 3,981,199 1,000,000 1,272,528 40,535,653 3.70% 2013-14 32,588,062 4,231,776 1,000,000 1,272,528 39,092,366

• 0.92%

2012-13 32,839,763 4,344,900 1,000,000 1,272,528 39,457,191

• 3.15%

2011-12 34,772,434 4,345,421 350,000 1,272,528 40,740,383 0.22% 2010-11 35,358,806 3,369,952 650,000 1,272,528 40,651,296 3.91% 2009-10 32,720,782 4,478,126 650,000 1,272,528 39,121,436 9.02% 2008-09 27,936,309 5,299,856 1,375,899 1,272,528 35,884,591

• 1.34%

Tax Levy History

33 34 35 36 37 38 39 40 41 42 Millions

• 0.01%
• 8.08%
• 1.34%

+9.02% +3.70% +3.91% +0.22%

• 3.15%
• 0.92%
• 3.66%

Tax Levy Statement

TAX RATES

Equalized Valuation Percent Change Tax Levy Percent Change Equalized Tax Rate Percent Change

2017-18 $3,447,941,862 +4.59% $35,896,191

• 0.01%

10.41

• 4.41%

2016-17 3,296,591,598 +0.29% 35,898,861

• 8.08%

10.89

• 8.33%

2015-16 3,287,136,559

• 1.26%

39,053,604

• 3.66%

11.88

• 2.46%

2014-15 3,329,026,532

• 0.33%

40,535,653 3.70% 12.18 4.10% 2013-14 3,339,998,284

• 1.70%

39,092,366

• 0.92%

11.70 0.78% 2012-13 3,397,751,611

• 2.43%

39,457,191

• 3.15%

11.61

• 0.77%

2011-12 3,482,403,977

• 2.24%

40,740,383 0.22% 11.70 2.54% 2010-11 3,562,215,024

• 3.65%

40,651,296 3.91% 11.41 7.84% 2009-10 3,697,212,230

• 0.75%

39,121,436 9.02% 10.58 9.87% 2008-09 3,724,966,843 3.48% 35,884,591

• 1.34%

9.63

• 4.69%

Tax Levy Mill Rate History

$11.61 $10.10 $9.63 $10.58 $11.41 $11.70 $11.70 $12.18 $11.88 $10.89

$0 $2 $4 $6 $8 $10 $12 $14

Key Points to Take Home

• State general aid was increased by $1,382,181 (+1.82%).
• Increases in State aid do not give additional revenue to the District.

They do however decrease the amount of local tax levy.

• $797,218 of the District’s tax levy is used to fund the State private

school voucher program. That amount will be deducted from the District’s state aid to fund the program.

• An additional $0.23 was added to the District tax rate to fund the

voucher program. ($34.50 additional tax for a $150,000 home)

• The District’s local tax levy is decreasing by 0.01%.
• The District’s tax rate is decreasing by 4.41%.
• The District is committed to being fiscally responsive to local

taxpayers while maintaining quality educational programs for students.

Thank you!

The Board of Education and the Sheboygan Area School District administration thanks you for your time and interest in the district’s financial situation.