East Allen County Schools CAPITAL PROJECTS FUND STRATEGIC REVIEW - - PowerPoint PPT Presentation

East Allen County Schools

CAPITAL PROJECTS FUND – STRATEGIC REVIEW

March 27, 2012

BOARD OF SCHOOL TRUSTEES

• Dr. Karyle Green

New Haven, Indiana Superintendent

CAPITAL PROJECTS:

Revenue, Expenditure, & Year-end Balance History

2005 2006 2007 2008 2009 2010 2011 Revenue 8,313,023 8,878,510 9,326,159 9,448,312 7,695,883 7,881,454 7,786,270 Expenses 5,607,280 7,600,217 8,949,504 9,351,467 10,334,152 7,874,244 9,671,709 Difference 2,705,743 1,278,293 376,655 96,845 (2,638,269) 7,210 (1,885,439) End of Year Balance 7,594,705 8,994,066 7,263,209 8,414,191 5,796,189 5,005,630 4,552,396 after Encumbrances

CAPITAL PROJECTS:

Revenue History (2012 Projection)

Revenue 2004 2005 2006 2007 2008 2009 2010 2011 2012 Property Taxes 6,664,846 7,447,420 7,999,494 8,321,760 8,519,873 6,901,009 7,130,992 7,016,173 6,693,573 Excise Taxes 685,600 730,103 739,092 762,630 738,809 619,262 599,603 596,598 550,762 CVET 76,351 89,894 96,358 104,762 108,632 89,050 90,445 87,806 83,415 FIT 34,960 40,520 38,344 40,725 40,224 39,298 40,515 38,697 36,762 Refunds/Reimbursements 11,064 5,086 5,222 10,282 40,774 45,850 14,899 46,996

• Fund Transfers

223,000

• 86,000
• 1,414

5,000

• Total

7,695,821 8,313,023 8,878,510 9,326,159 9,448,312 7,695,883 7,881,454 7,786,270 7,364,512

CAPITAL PROJECTS:

Expenditure by Summary Classification Type

Expenditures 2005 2006 2007 2008 2009 2010 2011 2012

Budget Buildings

896,647 2,191,642 2,672,261 2,631,094 3,797,673 1,481,330 2,523,877 4,519,865

Technology

1,344,539 1,681,054 1,958,382 2,146,572 2,242,942 1,903,927 2,620,113 2,994,178

Equipment

572,486 558,583 708,932 787,023 649,938 605,631 674,690 761,000

Salaries

1,311,823 1,251,982 1,323,254 1,364,806 1,367,558 1,328,021 1,430,473 1,497,700

Benefits

421,785 418,647 452,747 444,632 500,087 493,924 520,316 643,460

Utilities/Insurance

1,060,000 1,498,310 1,748,177 1,977,340 1,775,955 2,061,410 1,902,240 1,905,171

Total

5,607,280 7,600,217 8,863,755 9,351,467 10,334,152 7,874,244 9,671,709 12,321,374

CAPITAL PROJECTS:

Required Reductions for Balanced Budget

2012 Budget 2012 Revenue Needed to Reduce $12,321,374 $7,364,512 $4,956,862

CAPITAL PROJECTS:

• Funding Challenges

– Revenue of approximately $7.7 Million Per Year – Stagnant Assessed Value with Rate Cap – Decrease in Local Revenue (drop in Net Assessed Value in CY 2009)

• 2007

$9,326,159

• 2008

$9,448,312

• 2009

$7,695,883

• 2010

$7,881,454

• 2011

$7,786,270

• 2012

$7,555,518

– Circuit Breaker Affect CPF Total

• 2009

$ 40,412 [$105,193]

• 2010

$ 187,385 [$481,611]

• 2011

$ 239,567 [$644,390]

• 2012

$ 216,308 [$579,403]

• Capital Project Challenge

– Inadequate Funding Levels within CPF – Paradigm Shift of Priorities within CPF

CAPITAL PROJECTS:

Expenditure by Summary Classification Type

Expenditures 2012 Projection Balanced Buildings 3,081,000 1,020,000 Technology 2,994,000 1,097,000 Equipment 550,000 550,000 Salaries 1,498,000 1,498,000 Benefits 644,000 643,000 Utilities/Insurance 1,905,000 1,905,000 Total 10,672,000 7,693,000 Available 980,000

CAPITAL PROJECTS:

• House Bill 1072 [IC 6-1.1-18-12]

– Correction of the CPF Rate Cap Calculation method by DLGF (a decrease in assessed value results in a reduced rate cap [i.e. 0.2413 to 0.2264] which resulted in a reduced levy [$328,810]). Allows an Interest Free Loan to recoup CPF Levy Lost in 2012, to be paid back in 2013. – For $100,000 Gross Assessed Value Homestead - $4.87 per year 1. On or before June 1, 2012, the Office of Management and Budget shall calculate and certify to every taxing unit’s fiscal body (i.e. School Board) the greater of zero

• r the difference between the new CPF rate calculation for 2012 and the

calculation used by DLGF previously for 2012. 2. The taxing unit (i.e. School Board) may adopt a resolution to request a loan to replace part or all of the amount of the 2012 loss. This must be received by the Office of Management and Budget by July 1, 2012. 3. Before July 15, 2012, the Office of Management and Budget shall distribute from the State’s General Fund a loan for the amount certified. No interest or fee may be charged on the loan amount. 4. The school corporation shall impose a property tax levy in their 2013 Debt Service fund equal to the amount of the loan. The loan will be repaid in two installments in June and December.

Typical TBR & Fee Amounts

Grade Level Textbook Workbook Fee Total Kindergarten 67.62 24.99 92.61 1st Grade 115.49 11.22 26.22 152.93 2nd Grade 92.89 11.22 26.22 130.33 3rd Grade 93.85 36.32 130.17 4th Grade 87.22 3.05 51.47 141.74 5th Grade 89.55 45.22 135.47 6th Grade 76.09 58.48 134.57 7th Grade 71.77 9.95 96.74 178.46 8th Grade 77.31 2.37 103.90 183.58 9th Grade 85.87 14.94 117.43 218.24 10th Grade 120.33 117.48 237.81 11th Grade 113.46 40.03 120.58 274.07 12th Grade 107.16 10.08 119.58 236.82

• Payment/Financing Options

– * General Obligation [GO] Bond - Subject to Petition/Remonstrance Process if greater than $2 Million – paid back from Debt Services. (Any Capital Expenditure) – School Technology Advancement Account – EACS approval

• f ($201,880) - Common School Fund Loan

– * Common School Fund Loan - paid back from Capital Projects Fund or Debt Services (Any Capital Expenditure) – Hoosier Equipment Lease Purchase (HELP) Program - Indiana Bond Bank from CPF (Equipment Only) – Capital (Equipment) Lease - paid back from Capital Projects Fund (Equipment Only) – Short Term Loans – (Any Capital Expenditure) – Textbook Rental Fund – Replacement of Hardcover Textbooks with electronic device and electronic media

• * Any increased payment from Debt Services increases

the tax rate and affects the circuit breaker