2009 annual meeting power point

KIMBERLY AREA SCHOOL DISTRICT

2009 ANNUAL MEETING

Monday September 28, 20096:30 PM - Budget Hearing7:00 PM - Annual Meeting

KIMBERLY HIGH SCHOOLW2662 Kennedy Avenue

Kimberly WI 54136

KIMBERLY AREA SCHOOL DISTRICTBUDGET HEARING

Presented by:Gary Kvasnica

Director of Business Services

KIMBERLY AREA SCHOOL DISTRICTBudget Message

THE YEAR IN REVIEW - 2008/09


THE YEAR IN REVIEW - 2008/09STUDENT ACHIEVEMENT

As evidenced by our test scores, the District continues to be one of the higher achieving Districts in the Fox Valley, as well as the State

The Kimberly Area School District as a low spending, high achieving District, continues to provide our Community with great value



Compiled by the Wisconsin Tax Payers Alliance




Read Math

Pct. Decile Pct. Decile

4th GradeK12- District Average 81 77 Kimberly 91 3 93 2





DISTRICTDISTRICT PER STUDENT EXPENDITURES 2008-09 BUDGETPER STUDENT EXPENDITURES 2008-09 BUDGET

InstructionInstruction Comparative Exp.Comparative Exp.

Sal. &Sal. & Pupil Pupil Instr.Instr. Bldg.Bldg. PupilPupil Capital Exp./Capital Exp./ TotalTotal % St. % St. Avg.Avg.

TypeType NameName TotalTotal FringeFringe Serv.Serv. Supp.Supp. Admin.Admin. Grds.Grds. Trans.Trans. DebtDebt Exp.Exp. Amt.Amt. deciledecile (+/-)(+/-)

K-12 DISTRICT AVG.K-12 DISTRICT AVG. 6,7326,732 5,7015,701 493493 542542 861861 1,1171,117 458458 778778 11,49111,491 9,7469,746

K-12K-12 KimberlyKimberly 6,1906,190 5,0795,079 470470 491491 675675 900900 277277 1,2441,244 10,78410,784 8,7268,726 1010 -13.1-13.1


KIMBERLY AREA SCHOOL DISTRICTYEAR IN REVIEW - 2008/09

Enrollment continued to Grow

An increase of 132 Full Time Equivalent (4K and 5K count as .5) in students 08/09 vs. 80 in 07/08

Higher Rate than Expected

JANSSEN BOILER REPLACMENT

Reduced heating costs by 32%

Replaced 47 year-old Boilers with new Energy Efficient System

Unlike many Districts, we were able to fund our project without having to ask tax payers for additional money.

Capital Improvement Fund established by District allowed us to set aside funding over a several year period


THE YEAR IN REVIEW – 2008/09

JANSSEN BOILER REPLACMENT



Before After

Heat pipes were installed inceiling with ceiling/light replacement project to reduce costs

JOHN STREET ATHLETIC COMPLEX UPGRADES



Excavated a large retention pond to address drainage issues




Removed compacted soils for stadium football field and installed new fill along with Synthetic Field Turf

SYNTHETIC FIELD TURF



•Safer•Lower Maintenance costs•Increased Usability

The approximately $700,000 in Athletic Complex Upgrades Fundedthrough Capital Improvement Fund and Community Donations

•$424,500 in community commitments to date•Annual Payment on 10-year lease/purchase of turf is $37,878





Athletic Complex Donor Wall constructed and donated to the District by Sanderfoot Masonry and other contractors



OTHER FACILITY IMPROVEMENTS

KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09

Westside School Improvements

2st Year of a 3-Year Carpet Replacement Plan

07/08

08/09



Replaced deteriorated Wood Fascia with Steel Fascia


Chalkboards at Janssen replaced with Whiteboards

Before

After



Mapleview Improvements

Replaced Bathroom Partitions

Before

After



Janssen Improvements

Drain tiles installed in play area to address water build-up after snow and heavy rainfall


Sunrise School Improvements

Asphalt in Visitor Parking Lot Milled and Replaced

Before After


Sunrise School Improvements

Painting of Building Exterior completed

Before After



Woodland Improvements

Handicap Accessible Playground with Rubberized Surface for Wheelchair Access



JRG Middle School Improvements

RE-ROOFED SECTION B


THE YEAR IN REVIEW – 2008/09JRG Middle School

Sandy Huiting Learning Center

Outside Place for Kids to Meet and LearnParent and Community FundedNew Retention Pond allowed us to Build

KIMBERLY AREA SCHOOL DISTRICT FACILITIES

The improvements just listed have been paid for out of CapitalImprovements Fund

Helps insure that Capital Improvements donewhen neededTax Levy for this Fund is included withinRevenue Limits

Separate Fund that can only be used for Capital Improvements


THE YEAR IN REVIEW - 2008/09 Energy Conservation

The new Boiler System at Janssen significantly reduced energy consumption

Mapleview light replacement Plan completed with energy efficient lights in entrances

Janssen lighting replacement Plan completed

New Software installed that automatically turnsoff computers when not in use

KIMBERLY AREA SCHOOL DISTRICTTHE YEAR IN REVIEW - 2008/09

TECHNOLOGY IMPROVEMENTSReplaced old Computers at the Middle SchoolAdded Hardware and Software to improve interoperability between different software productsReplaced Network Switches to increase performance

Installed video projectors at High School and Middle School to enhance learning

Increased Storage Capacity

Implemented Mobile Computer Lab at Middle School to enhance learning


Insurance Change

Moved to New Plan AdministratorFor Non-Teaching Staff forSelf-Funded Dental Plan

Reason: Vendor has negotiated lower fees with Dentists

KIMBERLY AREA SCHOOL DISTRICTTHE YEAR IN REVIEW – 2008/09

Implemented a New Employee Savings Plan

Meets new IRS Guidelines for 403(b) Tax Deferred Savings Plans for Public Sector Employees

Offers Employees a variety of no-load mutual fundsat a cost significantly lower than previous plansInvestment Providers selected by a Volunteer Committee of District Employees After-tax (Roth) component now available

Similar to 401K in Private Sector


Wisconsin Retirement System Unfunded Liability Paid-Off

•Incurred Liability many years ago when joined State Pension Fund•Refinanced in 2003

•Final payment to be made in March of 09•Allowed District to pay-off loan sooner and reduced interest payments by approximately $400,000


Post Retirement Benefits Paid Health & Dental Benefits for certain staff retiring after age 55

Negotiated as a cost saving measure many years ago

•Cost of Insurance has risen dramatically

Several recent developments have Impacted

•New Accounting Requirements requiring Districts to pre-fund this Liability

The costs of these future retirement benefits will be substantial

To help protect future school boards and taxpayers from this significant future Liability the District established a Trust to help fund this Liability.

Post Retirement Benefits


Created in 2002/03Can only be used to pay Retiree Benefits

08/09 Contributions

Current Trust Fund Balance

Post Retirement Benefit Trust

Disbursements08/09 Fund Balance

Increase

Interest Earned

District is not obligated to make payments toward the Trust

$1,312,005

$882,738$191,064

$620,331

- $3,186,912


Post Retirement CDO Investment

In December of 2006 the District invested $700,000 from the Post Retirement Trust and borrowed $4,300,000 to purchase $5,000,000 in a Collateralized Debt Obligations (CDO’s) for the Trust

The market value of investment declined substantially

Credit linked AA rated Corporate Debt of approximately 140 investment grade companies that matures in 7-years.

Goal – Generate approximately $550,000 investment incomes at end of the 7 year term

The District believes it was mislead regarding the investment and has filed a lawsuit alongwith 4 other Wisconsin School Districts seeking rescission, damages and attorney fees


District Owned Land Sold

At prior Annual Meeting electorate Authorized District to sell a lotadjacent to Woodland School

Lot was sold for $37,500!


WHAT’S NEW IN 2009/10!


WHAT’S NEW IN 2009/10STATE BUDGET SHORTFALL

Cost-of-Living Increase under Revenue Controls decreased by $75 per student or $308,467

Less Money to Operate

State aid reduced by approximately2.5%

Under Revenue Controlsdecreases in State Aid resultin increased taxes


WHAT’S NEW IN 2009/10FEDERAL STIMULUS FUNDING

Purpose:

Stimulate Economy & Aid Financially Strapped School Districts

American Recovery and Reinvestment Act (ARRA)

District to receive $946,414 over a 2-year period to help implementstudent achievement initiatives for our special education students


WHAT’S NEW IN 2009/10NEW LABOR LEGISLATION

Qualified Economic Offer (QEO) Eliminated from Teacher Contracts- Under QEO District could offer a total compensation

package (salary & benefits) of 3.8% without having to go to

arbitration- Helped keep labor costs in line with state imposed revenue controls

Arbitration rules revised- Ability to pay and local economic conditions no longer given greatest weight in awarding arbitration decisions

Number of hours that an employee has to work to qualify for the WisconsinRetirement System (State Pension Plan) has been reduced


WHAT’S NEW IN 2009/10Increase in Wisconsin Retirement System Contributions

As a result of the recent economic downturn, investments used to pay retirement benefits for state employees have declined substantially

The required District contribution for 2010 has increased by .6% to 11% of an employee’s salary

Fortunately -

District paid off unfounded portion of the WisconsinRetirement System liability in 08/09 thereby lessening the impact of the increase

Wisconsin Retirement System contributions are expected to increaseby $234,817 to $2,349,616 in 09/10


WHAT’S NEW IN 2009/10FACILITY IMPROVEMENTS

KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10


Final Year of a 3-Year Carpet Replacement Plan

08/09

09/10

KIMBERLY AREA SCHOOL DISTRICTWHATS NEW IN 2009/10


Deteriorated Concrete and Asphalt in Front Drive Replaced

Before

After


WHATS NEW IN 2009/10


Replaced original Sinks, Faucets and Water Fountains

Before

After




Replaced antiquated Clocks with Automated Clocks

Before

After

KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Sunrise School Improvements

Asphalt in North Playground Milled and Replaced

Before After



Mapleview Improvements

Widened Receiving Room Door

Before

After

Easier more Efficient Egress for Distributing Supplies



Water Line Improvements

Replaced deteriorated Water Main at Middle School

Connected Water Line to the Woodland Field Irrigation System




Before

After

Replaced old Locker Room Doors




RE-ROOFED SECTION OVER TECH ED AND ART ROOM



Resurfaced Tennis Courts at High School and Middle School

Before

After



Administration Building Improvements

Before

After

Second Floor Reconfigured for Additional Staff

KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10

Energy ConservationWith the Installation of the Boiler System at Janssen all schools with the of exception Sunrise Elementary have above average energy efficiency With one-time freed up money because of Federal Stimulus Funding, the District plans to implement additional energy conservation projects at Sunrise and other schools to help reduce future operating costs

Completed Sunrise Gym Lighting Replacement

KIMBERLY AREA SCHOOL DISTRICTWHATS NEW IN 2009/10

TECHNOLOGY IMPROVEMENTSReplaced old Computers at Janssen and AdministrationReplaced Network Switches to increase performance & reliability

Installed video projectors at Westside, Janssen and Sunrise to enhance learning

Completed Virtualization Project

Implemented Mobile Computer Lab at High School to enhance learning

•Reduced Servers from 27 to 3 •Easier to Maintain•Significantly Reduced Energy Consumption

Continued HealthInsurance Cost Containment

KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10

Our Non-Teaching Staff moved from a Point-of-Service Network to a Single Provider System (HMO)

The rising cost of health Insurance continues to be a major concern in this era of revenue controls

Cost of a Family Plan approximately $2,000 less than would have been under the old plan


WHAT’S NEW IN 2009/10

Unsettled Labor Agreements

Teacher and Para-Professional Contracts expired on June 30, 2009

Have not settled 09-11 contracts with either labor groupas of the date of this publication

Enrollment

KIMBERLY AREA SCHOOL DISTRICTWHAT’S NEW IN 2009/10

The District projects continued Growth at a slower rate

KIMBERLY AREA SCHOOL DISTRICT THE FUTURE


The District receives a large percentage of its funding from the State

State has had difficulty balancing its Budget over the past several yearsExpected to worsen with recent economic decline and continued structural imbalances of the budget

District will need to remain diligent to maintain its strong financial position

It is likely that there will be even more restrictive revenue controls and further reductions in state aid

Enrollment Growth


THE FUTURE

The District receives significantly less revenue per student than the state average

Offset in past by the District’s rapid enrollment growthAs growth and corresponding revenue increases lessen, we will need to adjust our spending accordingly


THE FUTUREWisconsin Retirement System Contributions

As a result of the recent economic downturn, investments used to pay retirement benefits for state employees have declined substantially

To make up for these losses, School Districts will need to substantially increase contributions over the next several years

We need to work with our labor groups to have themhelp share the financial burden of these increases


Health Insurance

The District, our Labor Unions, Health Care Providers, Insurance Carriers, State and Federal Government must all work together to address issues!

As Costs continue to rise


THE FUTURELabor Relations

With the elimination of labor cost controls (QEO) and more restrictive revenue limits

The District will need to work closely and creatively with our laborgroups to provide fair compensation without eroding the qualityof education


Energy Costs

Less money will be available to educatechildren unless we continue to find ways to reduce energy consumption

Energy Costs are rising at a faster rate then our Revenue

The District has been a leaderin Energy Conservation


Technology

As these Funds become unavailable, the District will be challenged to meet the goals for our Technology Plan

The District has paid for a large portion of our Technology with Grant Funding and Referendum Proceeds

KIMBERLY AREA SCHOOL DISTRICTTHE FUTURE CHALANGE

With further limitations on revenue and increasing costs

Difficult choices may need to be made

District is currently in good Financial Shape

We will need to prioritize what is most important

KIMBERLY AREA SCHOOL DISTRICTBUDGET MESSAGE

ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR 2009/10

• Tax Levy

• Tax Rate The amount a homeowner would pay for every $1,000 of Equalized Property Value

If the Tax Rate were $9.00 per $1000 of Equalized Valuation and an individuals property had an equalized value of $100,000 the tax rate would be $900

Total Amount of Tax Revenue

Assessed Value is the property value as determined by the individual Municipality

Equalized Value is total Fair Market Value of all properties within the District. This includes several municipalities.

KIMBERLY AREA SCHOOL DISTRICTBUDGET MESSAGE

ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR 2009/10

- 30 Additional Students - If more Students, Revenue Cap and Tax Levy will increase

• Revenue Limit

• Property Valuation- Estimated at 0% increase. If higher, Tax Rate will decrease

The above estimates should be finalized in October!

• Equalization (State) Aide reduction- If more than projected, Tax Levy will increase• Business Computer Valuation- If higher than projected, Tax Levy will decrease

- Cost of Living Increase of $200 per student

KIMBERLY AREA SCHOOL DISTRICTBUDGET HIGHLIGHTS

TAX LEVYGENERAL FUNDDEBT SERVICECAPITAL IMPROVEMENTS*COMMUNITY SERVICE

TOTAL

Actual 2008-09$9,607,904$4,260,503 $ 553,150 $46,415

$14,467,972

Budget Dollar Percent 2009-10 Change Change$11,033,938 $1,426,034 14.84%

$531,000 -$ 22,150 - 4.00%

$15,645,534 $1,177,562 8.14%

$4,049,080 -$211,423 - 4.96%

$31,516 -$ 14,899 -32.10%

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2008-09 2009-10*

TAX LEVY

COMMUNITYSERVICE

CAPITALIMPROVEMENTS

DEBT SERVICE

GENERAL FUND

KIMBERLY AREA SCHOOL DISTRICTBUDGET HIGHLIGHTS

TAX LEVY

2006-072007-082008-092009-10

Amount $14,593,571

Increase/Decrease

$15,645,534 $1,177,562 8.14%

- $155,321 - 1.4%

$14,467,972

$29,712 0.2%

Under the Revenue Control Formula -If State Aid decreases the Tax Levy

increases

$14,438,250

The State Aid increase in 09-10 is significantly less than 07-08 & 08-09

TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION

GENERAL FUNDDEBT SERVICECAPITAL IMPROVEMENTS COMMUNITY SERVICE

TOTAL

Actual 2008-09 $5.94 $2.63 $0.34 $0.03

$ 8.94

Budget DOLLAR PERCENT2009-10* CHANGE CHANGE$6.81 $0.87 14.65%

* Tax rate is estimated. The actual rate can not be determined until property valuation is certified by the Department of Revenue in October.

$0.33 -$0.01 - 2.94% $0.02 -$0.01 -33.00%

$9.66 $0.72 8.05%

$2.50 -$0.13 - 4.94%

TAX RATE PER $1,000

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2008

-09 20

09-

10*

COMMUNITY SERVICE

CAPITAL IMPROVEMENTS

DEBT SERVICE

GENERAL FUND

Increased Tax Rate Impact ExamplesIncreased Tax Rate Impact Examples Assuming a Tax Rate increase of $.72 per $1,000 Assuming a Tax Rate increase of $.72 per $1,000 of Equalized (Market) Valueof Equalized (Market) Value

Home Value Tax Increase$100,000 $72.0

0$150,000

$108.00

$200,000 $144.00

Please note that the above increases are based on the market value of a home. Municipalities are tax based on assessed value. The assessed value will vary between the 5 municipalities within the District’s boundaries.

* 2009-10 Property Valuations and the corresponding Tax Rate are estimated. Actuals can not be determined until property valuation is certified by the Department of Revenue in October.

15.90

14.52

11.2110.3810.11

11.7210.91

10.2610.11 9.669.569.08 9.59 9.25 8.94 9.66

$0

$2

$4

$6

$8

$10

$12

$14

$16Ra

te

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

School Year

TAX RATE PER $1,000 OF EQUALIZED PROPERTY VALUE

FUND ACCOUNTING

• District is required by law to account for money in separate accounting entities called funds.• Each fund has a specific purpose.• Each Fund accounts for money received (Revenue) and money spent (Expenses)

General Fund

•Operating Budget

•By far the Largest Fund

•Money comes primarily from State Aid and the Property Tax Levy

Unaudited 2009-10 Dollar Percent GENERAL FUND 2008-09 Budget Change Change

Revenue(Money Coming In)

$38,522,030

$40,948,450

$2,426,420 6.30%

The increase in total revenue is primarily related to an estimated $1,426,434 increase in Property Taxes as a result of a reduction in General State Aid. General State Aid increased by $453,242. The other significant increase was $672,629 for Revenue from other school districts for their children attending our District under Open Enrollment

Salary and Benefit Expenses for new and existing staff increasedby $2,522,400

Unaudited 2009-10 Dollar Percent GENERAL FUND 2008-09 Budget Change ChangeExpenses (Money Going Out)

$37,789,197

$40,948,450

$3,159,253

8.36%

KIMBERLY AREA SCHOOL DISTRICT 2009-10 STAFFING

Additional Staff may be hired after the start of the school year to address unanticipated enrollment and growth related issues.

Additional Staff includes:(.5) Family and Consumer Education Teacher at High School(.5) Spanish Teacher at High School(.33) Physical Education Teacher at High School (.5) World Language/Spanish Teacher at the Middle School(1) 7th Grade Teacher(3) Elementary/Intermediate Teachers(.6) Title I Math Teacher *(.5) Early Childhood Teacher *(.5) Early Childhood Paraprofessional *(.24) School Psychologist(.05) Secretary(1) Special Education Coordinator of Instructional Services *Staffing Reductions Include:(.5) English Teacher at High School(.17) Math Teacher at High School(.67) Science Teacher at High School(2) CustodiansNet Increase of 5.38 Employees•2.65 Positions funded with Federal Stimulus or other Federal Grants

SIGNIFICANT GENERAL FUND EXPENSE INCREASES

• Energy Saving Initiatives from freed up money as a result of Federal Stimulus Funding• Tuition Costs for Kimberly Residents attending other School Districts

+ $450,0000

+ $276,227

• Benefits for New and Existing Staff including increased contributions for Retirement Benefits

+ $1,365,817

• Salaries for New and Existing Staff

+1,156,583

• Textbook Purchases

+ $138,222

Kimberly Area School District

SIGNIFICANT CAPTIAL EQUIPMENT PURCHASES

Copier Replacements $80,000

Computer System Replacements & Networking Hardware

$109,000

SIGNIFICANT GENERAL FUND EXPENSE DECREASES

Short-Term Borrowing Expenses

- ($44,602)

Technology Related Equipment

- ($252,000)

Budget includes the same dollar allotment per student as last year in non-salaried expenditures where practical

Interfund Transfer to the Special EducationFund reduced as a result of Federal Stimulus Funding

- ($3,111)

Expenditures by Object (Type)General Fund

25.10%13.66%

0.60%

8.31%

0.46%

9.38%

0.02%

4.42%

0.60%

46.82%

Salaries

Benefits

PurchasedServicesNon-CapitalEquipemntCapitalEquipmentOperationalDebtInsurances

InterfundTransferOther

Expenditures by Object (Type) including Special Education Fund

27.40%

51.21%

0.70%

13.58%0.59%

5.96%

0.55%

Salaries

Benefits

PurchasedServicesNon-CapitalEquipmentCapitalEquipmentOperationalDebtInsurances

Other

2009 ANNUAL MEETING

Motion will be made to adopt a Tax Levy of $15,645,534as presented to you, the electorate


More detailed information is available in the Annual Meeting Booklet or can be obtained at the Administrative Offices on 217 E. Kimberly Avenue

Do you have any questions?Gary Kvasnica, the Director of Business Services, can be reached at 788-7900.

Thank You!

KIMBERLY AREA SCHOOL DISTRICTANNUAL MEETING AGENDA ITEM

Sale of District Land no longer needed for Educational Purposes

The District acquired Lot 84 of the JeffMeadows Subdivision in 2005 and had a path installed to provide walking access to Woodland SchoolThe District has been approached by the owner of the lot to east of lot 84asking us to sell the southeast portionof Lot 84 up to 5 feet away from the walking path that divides the propertyThe District does not need this land to theeast of the walking path and would prefernot having to maintain it