School District of Kettle Moraine Referendum Options JULY 17, 2018 Baird Public Finance Lisa M. Voisin Managing Director 414-765-3801 (office) 414-828-8794(cell) lvoisin@rwbaird.com
Total 2017-18 Tax Levy Community Service Levy $215,255 Revenue Limit Referendum Levy Debt Levy $31,676,092 $4,236,631 plus (+) State Equalization Aid : $5.8 Million Total Tax equals (=) Total Levy Revenue Limit : $37.5 Million $36,127,978 2 Source: Department of Public Instruction
Total 2017-18 Mill Rate Community Service Mill Rate $0.06 Revenue Limit Referendum Mill Rate Debt Mill Rate $8.84 $1.18 Total Mill Rate $10.08 3 Source: Department of Public Instruction
Current Budget Forecast Fund 10 - General Fund - Projection Summary REVENUE & EXPENDITURE PROJECTIONS BUDGET FY - 2018 FY - 2019 % ∆ FY - 2020 % ∆ FY - 2021 % ∆ FY - 2022 % ∆ FY - 2023 % ∆ REVENUE Local Sources $32,210,592 $32,240,327 0.09% $31,909,080 -1.03% $31,825,853 -0.26% $32,066,396 0.76% $31,971,352 -0.30% State Sources $7,923,301 $7,762,867 -2.02% $7,757,695 -0.07% $6,971,218 -10.14% $6,296,150 -9.68% $5,728,004 -9.02% Federal Sources $213,291 $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% $213,291 0.00% Other $3,894,265 $3,915,821 0.55% $4,069,491 3.92% $4,103,409 0.83% $4,237,213 3.26% $4,452,837 5.09% TOTAL REVENUE $44,241,449 $44,132,306 -0.25% $43,949,557 -0.41% $43,113,771 -1.90% $42,813,050 -0.70% $42,365,484 -1.05% EXPENDITURES Salary and Benefits $29,519,653 $28,171,604 -4.57% $28,642,048 1.67% $29,260,229 2.16% $29,775,162 1.76% $30,558,947 2.63% Other Objects $16,816,049 $15,960,701 -5.09% $16,258,164 1.86% $16,497,307 1.47% $16,770,245 1.65% $17,052,443 1.68% TOTAL EXPENDITURES $46,335,702 $44,132,306 -4.76% $44,900,213 1.74% $45,757,536 1.91% $46,545,407 1.72% $47,611,390 2.29% (CUMULATIVE BUDGET SHORTFALL) ($2,094,253) $0 ($950,656) ($2,643,765) ($3,732,357) ($5,245,906) ANNUAL BUDGET SHORTFALL (Non-Cumulative) ($2,094,253) $0 ($950,656) ($1,693,109) ($1,088,592) ($1,513,549) 4
Comparison of Referendum Options ONE QUESTI ON TW O QUESTI ONS $ 5 .5 Million for 2 0 Years Debt and Operational Single question – easier to communicate Keeps Facility and Operations Questions Separate Non-recurring Referendum : Lock in operational Non-recurring Referendum : Lock in operational amount for 20 years. Can revisit budget after amount for 4(?) Years. Must go back to certain number of years and go back to referendum upon expiration of operating increase. referendum if needed. Recurring Referendum : can revisit budget after Recurring Referendum : can revisit budget after certain number of years and go back to certain number of years and go back to referendum if needed. referendum if needed. Initial tax impact estimated at $47 on $100,000 Initial tax impact estimated to be minimal or $0 Property Requires 30-day petition period in addition to referendum Strategy to borrow less (lower interest cost of approx. $8,000,000) 5
Comparison of Debt ONE QUESTI ON TW O QUESTI ONS Use operating referendum funds to pay for Issue debt for total project costs - $ 1 9 ,6 0 0 ,0 0 0 projects for two years, then issue debt for remaining projects in year two (approx. $ 1 2 ,2 0 0 ,0 0 0 debt) Structure debt around operating needs, amortized Structure debt around existing referendum debt over 18 years (average life around 10 years) service, amortized over 21 years (average life around 16 years) Total interest cost estimate approx. $5,300,000 Total interest cost estimate approx. $13,300,000 6
One Question - $5.5 Million 20 Years $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 2029‐30 2030‐31 2031‐32 2032‐33 2033‐34 2034‐35 2035‐36 2036‐372037‐38 2038‐39 Available funds for Operating Referendum Projects ($7,400,000) Referendum Debt ($12,200,000) 7 Note: im pact on state aid is not incorporated due to the district being in hold-harm less.
One Question - Tax Impact $12.00 $10.87 REFERENDUM REFERENDUM REFERENDUM REFERENDUM REFERENDUM $10.40 $10.28 $10.31 $10.08 $10.00 $8.00 Mill Rate $6.00 $4.00 $2.00 $0.00 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Actual ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Estimated ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Existing Levy Inside Revenue Limit (F10 & F38) Fund 41 Fund 80 Existing Referendum Debt Service* Hypothetical Operating Referendum** * After 2018 defeasance and hypothetical 2019 defeasance. 8 * * Assum es $5,500,000 in 2019-20 through 2038-39 (20 years). Mill rate based on 2017 Equalized Valuation (TID-OUT) of $3,584,468,052 with annual growth of 3.00% for three years and 2.50% thereafter. Note: im pact on state aid is not incorporated due to the district being in hold-harm less.
Two Questions - Tax Impact $12.00 $10.87 REFERENDUM REFERENDUM REFERENDUM REFERENDUM REFERENDUM $10.40 $10.31 $10.28 $10.08 $10.00 $8.00 Mill Rate $6.00 $4.00 $2.00 $0.00 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Actual ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Estimated ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Existing Levy Inside Revenue Limit (F10 & F38) Fund 41 Fund 80 Existing Referendum Debt Service* Hypothetical Debt Referendum ($19.6 Million) Hypothetical Operating Referendum** * After 2018 defeasance and hypothetical 2019 defeasance. 9 * * Assum es $2,500,000 in 2019-20, $1,100,000 ($3,600,000) in 2020-21, $600,000 ($4,200,000) in 2021-22 and $1,000,000 ($5,200,000) in 2022-23. Mill rate based on 2017 Equalized Valuation (TID-OUT) of $3,584,468,052 with annual growth of 3.00% for three years and 2.50% thereafter. Note: im pact on state aid is not incorporated due to the district being in hold-harm less.
Questions? 10
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