Consolidation Financial Analysis ONE YEAR ANALYSIS FOX POINT J2, - - PowerPoint PPT Presentation

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Consolidation Financial Analysis ONE YEAR ANALYSIS FOX POINT J2, - - PowerPoint PPT Presentation

Mar 07, 2023 109 likes •400 views

Consolidation Financial Analysis ONE YEAR ANALYSIS FOX POINT J2, GLENDALE-RIVER HILLS, MAPLE DALE-INDIAN HILL AND NICOLET UHS SCHOOL DISTRICTS Presented by: Debby Schufletowski Senior Vice President Baird 715-552-3567 (office) 715-557-2580

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Consolidation Financial Analysis

ONE YEAR ANALYSIS FOX POINT J2, GLENDALE-RIVER HILLS, MAPLE DALE-INDIAN HILL AND NICOLET UHS SCHOOL DISTRICTS

Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes. The materials do not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice” within the meaning of Section 15B of the Securities Exchange Act of 1934 or the rules thereunder.

Presented by: Debby Schufletowski Senior Vice President Baird 715-552-3567 (office) 715-557-2580 (cell) dschufletowski@rwbaird.com

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Our Team – School Business Solutions

Debby Schufletowski School Business Specialist 715-552-3567 dschufletowski@rwbaird.com Diane Pertzborn School Business Specialist 608-886-8572 dpertzborn@rwbaird.com Marleen Clark School Business Specialist 715-450-1956 mclark@rwbaird.com

Knowledge Transfer

On-site training Business office consulting Board and community presentations School finance resources and materials

Stand-in Services

Budgeting Board and state reporting Bank reconciliations Audit assistance

Business Office Services

Multi-year Budget Planning Operational referendum analysis Consolidation Analysis Planning and communication tools

Keith Lucius School Business Specialist 920-634-6999 klucius@rwbaird.com

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Our Team – School Finance

Brian Brewer Managing Director 414-298-7030 bbrewer@rwbaird.com Lisa Voisin Managing Director 414-765-3801 lvoisin@rwbaird.com Michel Clark Director 414-765-7326 mdclark@rwbaird.com

Financial Management

Referendum planning Debt monitoring and analysis Capital improvement planning Investment alternatives

Debt Issuance Planning

Financing alternatives Market analysis Debt structuring options Credit rating consultation Document and disclosure guidance

Municipal Bond Market Access

National sales force Diverse investors Active in all types of fixed income securities Dedicated purchaser of cash flow notes

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  • Financial analysis part of comprehensive analysis
  • Main questions:
  • Tax impact
  • Budget impact
  • Tonight’s presentation will:
  • Review key variables
  • Discuss potential consolidation impact
  • Address FAQs
  • Identify potential next steps

Setting the Stage

Watch for notes further clarifying key terms and concepts

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  • The study:
  • Focuses on the potential financial impact
  • Uses current knowns to estimates potential impact
  • Should be used to review trends
  • Results could change if districts choose to consolidate and

variables drastically change

Background

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Educational Opportunities Levy/Mill Rate Budget

Background

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About the Districts

Maple ple Dale le-India Indian n Hill

  • K-8 School

District

  • 419 FTE

Fox x Point nt J2

  • K-8 School

District

  • 687 FTE

Glendal ale-Rive iver r Hills ls

  • K-8 School

District

  • 936 FTE

Nicolet let UHS

  • Union High

School

  • 1079 FTE

Reflects 2017-18 actual data Source: Department of Public Instruction

FTE TE = Resident student count prorated for part-time enrollment

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Key Question: Tax Impact

Total School- Based Tax Levy Revenue Limit Tax Levy (Funds 10, 38 & 41) Referendum Approved Debt Levy (Fund 39) Community Service Tax Levy (Fund 80) Other Levy The revenue limit levy is controlled by state formulas

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Key Question: Tax Impact

95% 85% 98% 95% 94% 5% 15% 2% 5% 6% 0% 20% 40% 60% 80% 100% Nicolet UHS* Fox Point J2* Glendale-River Hills* Maple Dale- Indian Hill* Sample Consolidated

Aid as a % o

  • f Revenue

enue Li Limit t Auth thority

  • rity

Revenue Limit Levy State EQ Aid

*Reflects 2017-18 actual data *Source: Department of Public Instruction

State Equalization aid determines the revenue limit levy

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Total School- Based Tax Levy Equalized Property Value $1,000 Mill Rate

Key Question: Tax Impact

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Key Question: Tax Impact

*Reflects 2017-18 actual data *Source: Department of Public Instruction

Mill rate e = rate per $100,000 property value $7.83 $7.47 $7.06 $4.74 $4.74 $4.74 $12.09 $12.57 $12.21 $11.80 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Fox Point J2* Glendale-River Hills* Maple Dale- Indian Hill* Sample Consolidated

Estim timated ated Mill l Rate te

K-8 District Nicolet UHS

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Key Question: Tax Impact

Source: Department of Public Instruction

Operational referendum authority increases districts’ revenue limit tax levy.

Non-Recurring Operational Referendum Authority

Nicolet UHS Fox Point J2 Glendale- River Hills Maple Dale- Indian Hill 2017-18 $3,150,000 $950,000 $980,000 $800,000 2018-19 $3,150,000 $950,000 $980,000 $800,000 2019-20 $3,150,000 $0 $980,000 $0 2020-21 $3,150,000 $0 $0 $0 2021-22 $3,150,000 $0 $0 $0 2022-23 $0 $0 $0 $0

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  • In summary:
  • Typical, and true here, estimates show mill rate falling

within current districts’ current mill rates

  • Current districts’ operational referendum authority prior to

potential consolidation will affect estimate and comparison

  • Operational referendum needs of the potential

consolidated district will affect estimate and comparison

Key Question: Tax Impact

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Key Question: Budget Impact

Resident Membership (FTE) $ per pupil

One-time (Non- recurring) exemptions On-going (Recurring) exemptions Revenue Limit Authority The revenue formula comprises approximately 70% - 90% of districts’ operational revenue.

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Key Question: Budget Impact

1,081 675 956 418 3,130

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 2018

2017 2017-18 18 Se Septe temb mber er FTE

Nicolet UHS* Fox Point J2* Glendale-River Hills* Maple Dale-Indian Hill*

*Reflects 2017-18 actual data *Source: Department of Public Instruction

Sample Consolidated

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Key Question: Budget Impact

15,344 13,023 12,103 14,468 13,743 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000

Nicolet UHS* Fox Point J2* Glendale-River Hills* Maple Dale- Indian Hill* Sample Consolidated

Maxim imum m Revenue enue / Memb mber er

*Reflects 2017-18 actual data *Source: Department of Public Instruction

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Key Question: Budget Impact

Source: Department of Public Instruction

Operational referendum authority increases districts’ revenue limit, and therefore, operational revenue.

Non-Recurring Operational Referendum Authority

Nicolet UHS Fox Point J2 Glendale- River Hills Maple Dale- Indian Hill 2017-18 $3,150,000 $950,000 $980,000 $800,000 2018-19 $3,150,000 $950,000 $980,000 $800,000 2019-20 $3,150,000 $0 $980,000 $0 2020-21 $3,150,000 $0 $0 $0 2021-22 $3,150,000 $0 $0 $0 2022-23 $0 $0 $0 $0

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Key Question: Budget Impact Consolidation Aid

  • Aid equal to $150 / pupil

Year 1

  • Aid equal to $150 / pupil

Year 2

  • Aid equal to $150 / pupil

Year 3

  • Aid equal to $150 / pupil

Year 4

  • Aid equal to $150 / pupil

Year 5

  • Aid equal to 50% of Year 5 amount

Year 6

  • Aid equal to 25% of year 5 amount

Year 7

  • $0 consolidation aid incentive

Year 8 Consolidation aid is in addit dition ion to the revenue limit revenue and is defined in WI State Statutes 117.09(6)

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Key Question: Budget Impact Consolidation Aid

$468,150 Estima timated ted Consolidat solidation ion Aid Outsid side e (in add ddition ition to) ) Reven venue ue Limit it Dollar llars Estimate = 3,121 * $150

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  • In summary:
  • Revenue limit authority for the sample consolidated district

is estimated to be consistent with the sum of the individual districts

  • Operational referendum authority will affect this

estimate

  • The current consolidation aid estimate is approximately

$450,000. This estimate could change because of:

  • Resident student count changes
  • Changes in statutes

Key Question: Budget Impact

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Other Notable Items

FUND BALANCE

33% 15% 16% 42% 0% 10% 20% 30% 40% 50% $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Nicolet UHS Fox Point J2 Glendale-River Hills Maple Dale- Indian Hill

2018 2018-19 19 Budgete eted d Fund 10 Expend enditu itures es and Ending ng Fund d Balance ance (w (with th %)

Ending Fund Balance Expenditures Fund Balance as a % of Exp.

Source: Department of Public Instruction

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Other Notable Items

GENERAL OBLIGATION DEBT

Long Term Debt Capacity as of June 30, 2017

Legal Debt Capacity %** Available Debt Capacity % Debt Outstanding June 2017 Nicolet UHS* 5% 97% $6,296,012 Fox Point J2* 5% 95% $3,415,000 Glendale-River Hills* 5% 98% $2,646,480 Maple Dale-Indian Hill* 5% 95% $2,696,825 Sample Consolidated District 10% 97% $15,054,317

**K-8, UHS, & ZERO AID K-12 LIMIT = 5%, AIDED K-12 LIMIT = 10% PER WISCONSIN STATE CONSTITUTION: ARTICLE 11, SECTION 3 AND CHAPTER 67.03, WIS STATS

*Reflects 2017-18 actual data *Source: Department of Public Instruction

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  • This presentation only talks about the finances,

what about the students, curriculum, programming, etc.

  • How do districts typically use the consolidation aid?
  • How do the long-term finances of the sample

consolidated district compare to the individual districts?

  • How might the sample consolidated

district compare to area districts?

FAQ

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Comparables – FTE

1660 3507 1884 2823 3130 500 1000 1500 2000 2500 3000 3500 4000 Brown Deer* Mequon- Thiensville* Shorewood* Whitefish Bay* Sample Consolidated

Esti timat mated ed Se September tember FTE Compar parables ables

*Reflects 2017-18 actual data *Source: Department of Public Instruction

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Comparables – Mill Rate

$14.14 $8.07 $13.88 $10.35 $12.09 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Brown Deer* Mequon- Thiensville* Shorewood* Whitefish Bay* Sample Consolidated

Esti timated mated Mill l Rate te Comparables parables

*Reflects 2017-18 actual data *Source: Department of Public Instruction

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Educational Opportunities Levy/Mill Rate Budget

  • Determine if discussions should continue
  • If so consider exploring items such as:
  • Programming
  • Facilities
  • Efficiencies
  • Other?
  • Review and update financial

projections to anticipate estimate fluctuations

Potential Next Steps

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Questions?

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Robert W. Baird & Co. Incorporated is providing this information to you for discussion purposes only. The information does not contemplate or relate to a future issuance of municipal securities. Baird is not recommending that you take any action, and this information is not intended to be regarded as “advice” within the meaning of Section 15B

  • f the Securities Exchange Act of 1934 or the rules thereunder. In providing this

information, Baird is not acting as an advisor to you and does not owe you a fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934. You should discuss the information contained herein with any and all internal or external advisors and experts you deem appropriate before acting on the information. Information and situations are intended to reflect rules and law for the state of Wisconsin

Disclosures