Eudora USD 491 FY20 Budget Hearing August 14, 2019
General Fund Budget Authority General Fund $11,570,585 Local Tax (20 Mills) $1,323,906 SPED Flow-thru $1,903,309 State Aid $8,343,370 Focus: State Aid represents 72% of the total General Fund. Local taxes represents 11% of the General Fund.
General Fund Budget Authority For 2019-20 school year - BSAPP is $4,436 (Increase of $271 per FTE)
Supplemental General Fund Authority (LOB Authority) LOB Authority $3,639,802 Local Tax $ 982,726 State Aid $2,564,241 Focus: It takes 13.638 mills to raise our local share of the LOB. Because of our low assessed value, we qualify for 70% State Aid on the LOB. LOB Authority represents 31%.
Supplemental General Fund Authority (LOB Authority) The LOB has been increased to 31% of the district’s general fund. If the general fund increases, 31% generates more money in the LOB. The LOB was originally intended for districts to purchase “extras” but now is critical to day-to-day operational expenses. As authorized by Statute, Eudora has increased to 31%.
Assessed Valuation 2018 Final $66,880,321 2019 $72,055,681 Increase of $5,175,360 Assessed Valuation per pupil $42,100
Why is Assessed Valuation Important? If the assessed valuation grows substantially, it takes fewer mills to raise the same dollars. While some change in valuation is expected year to year, major growth in valuation comes through new home starts and increases in local business and industry. The mill rate on our Bond and Interest has increased annually to meet our debt service. The mill rate has been higher due to the fact that our assessed valuation did not grow at the rate projected when the bonds were sold. Economic crash of 2008 severely restricted new business and home construction in Eudora. For the past 5 years, our valuation growth has been relatively flat.
USD 491 Mill Rates FY18 (Actual) FY20 (Proposed) Difference General Fund 20.000 20.000 No Change LOB 13.596 13.638 + 0.042 Capital Outlay 8.000 8.000 No Change Bond and Interest 29.032 29.026 - 0.006 Total Mill Rate 70.627 70.664 + 0.037
Quick Computations 2018-19 GF 2019-20 GF $150,000 Home $20,000 Home exempt $ 130,000 $ 130,000 Assessment Factor for Homes 11.5% 11.5% Assessed Valuation $14,950 $14,950 Mill Rate - 20 Mills .020 .020 Property Tax $299.00 $299.00
Quick Computations 2018-19 AOF 2019-20 AOF $150,000 Home Assessment Factor for Homes 11.5% 11.5% Assessed Valuation $17,250 $17,250 Mill Rate - 50.627 50.664 Property Tax $ 873.32 $ 873.95 Net Change $ 0.63 increase for the year, or $0.05/mo increase.
Cash Balances ● Capital Outlay $497,750 Facility repairs/maintenance (R) ● Driver Training $1,413 Driver’s Ed expenses (R) ● Food Service $214,373 School Food Services (R) ● Contingency $194,500 Reserve funds (R) ● Textbook/Material $19,082 Textbooks, Student Materials (R) ● Bond & Interest $4,765,791 Bond Repayment (R) Total cash balances as of 7/1/2019 is $5,697,706 *(R) - Restricted funds, designated for fund specific expenditures.
Final Thoughts 1. Eudora’s low assessed valuation means we rely on State Aid in our budget. 2. Any increases/decreases in State Aid or the current finance plan, will most certainly impact the local mill rate. 3. Substantial growth in our tax base could help bring some relief to patrons. 4. Continued growth in enrollment will bring on conversations regarding future bond campaigns to fund needed expansion.
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