2014 budget budget hearing: october 14, 2013 budget adoption: october 28, 2013
TRANSCRIPT
2014 BUDGET
Budget Hearing:October 14, 2013
Budget Adoption:October 28, 2013
PROPOSED BUDGET PRESENTATION
Five Questions about this Proposed Budget:1. How much do we propose to
spend and on what would we spend it?
2. What revenues and resources will we have to support the needed expenditures?
3. Will our budget be balanced?4. What does all this mean to the
taxpayer?5. What is our long-term outlook?
FIRST:The Required State of
Indiana Budget Forms and
Related Budget Documents
DLGF’s State Budget Forms for 2014Form 1 – Detail of AppropriationsForm 2 – Projected RevenuesForm 3 – Summary Totals of
Appropriations and Levies Form 4A – Another Summary of
AppropriationsForm 4B – Calculation of LeviesRequired Supporting Documents:
• Current Year Worksheets• Debt Service Worksheets• CPF and Bus Replacement Plans
Full copies of all state required budget
forms and documents for 2014 are
available in our budget book (hard
copy available upon request) which is
published on our website.
“Advertised” and “Actual”
The
“Advertised”
Budget
• Required format• Required forms• Rates, levies, calculations
pre-ordained or strongly recommended because of statutory process and state level oversight/direction
The “Actual” Budget • Anticipated revenues
based on formulas and laws
• Anticipated expenditures based on continuing contracts and other obligations
Projections!
DISCLAIMER: THE ESTIMATED EXPENDITURES, PROJECTIONS OF COSTS, TAX RATES, LEVIES, ANDAPPROPRIATIONS, AND ALL OTHER INFORMATION AND DATA PRESENTED HEREIN ARE INTENDED FOR INFORMATIONAL OR ANALYTICAL USE ONLY AND MAY NOT BE USED FOR ANY OTHER PURPOSE. THE STATE FORMS SHOWN IN OFFICIAL BUDGET (STATE FORMS 1 THROUGH 4B, THE CAPITAL PROJECTS PLAN, THE BUS REPLACEMENT PLAN, AND ALL OTHER STATE REQUIRED RELATED DOCUMENTS) CONSTITUTE THE OFFICIAL 2014 BUDGET OF THE ZIONSVILLE COMMUNITY SCHOOLS.
DIFFERENCES BETWEEN THE AMOUNTS SHOWN ON THE OFFICIAL STATE FORMS AND DOCUMENTS AND ITEMS IN THIS PRESENTATION, IF ANY, ARE SPECULATIVE, BASED ON ASSUMPTIONS ABOUT CERTAIN FUTURE EVENTS, AND CANNOT BE CONSTRUED AS CONTRADICTIONS OF OR DISCREPANCIES IN OR WITH THE OFFICIAL BUDGET. FURTHER, THE PROJECTIONS AND ESTIMATES SHOWN, WHILE BASED ON THE MOST CURRENT INFORMATION AVAILABLE AT THE TIME OF THEIR FORMULATION, ARE SUBJECT TO UNKNOWN OR UNEXPECTED EVENTS AND CONTINGENCIES AT ANY TIME DURING THE BUDGET YEAR.
THE ACTUAL FINANCIAL RESULTS ACHIEVED MAY THEREFORE BE MATERIALLY DIFFERENT FROM THE PROJECTIONS AND ESTIMATES SHOWN.
2014 BUDGET: REVENUES
How much revenue will we have? What are the
sources of our revenues?
REVENUES
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2014 Projected Revenues by Fund and Source
State Aid
Property Taxes
Excise & FIT
Other
Sta
te A
id
Pro
pert
y T
axes
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $4,000
$4,200
$4,400
$4,600
$4,800
$5,000
$5,200
$5,400
$5,600
$5,800
$6,000
$6,200
$6,400
$6,600
4,000
4,200
4,400
4,600
4,800
5,000
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
Zionsville Community SchoolsGeneral Fund
Base Per Pupil Funding vs. Enrollment
The last time we had per pupil funding this low was in 2002, with nearly 2,000 fewer ZCS students to serve!
Incr
easing
enrollm
ent
Declining funding
REVENUES
REVENUES
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $3,800
$4,000
$4,200
$4,400
$4,600
$4,800
$5,000
$5,200
$5,400
$5,600
$5,800
$6,000
Zionsville Community SchoolsPer Pupil Funding in Constant Dollars
(Adjusted for inflation to 2003)Compared to Actual Funding
Inflation adjusted 2003
dollars
Per Pupil Funding
Referendum
State Funding
Property Taxes
Other
REVENUES2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
10%
20%
30%
40%
50%
60%
70%Zionsville Community SchoolsHistorical Sources of Revenues
State Funding
Property Taxes
Other Sources
These are property taxes ordered by DLGF but which are not required to be paid by taxpayers = loss to
schools.
REVENUES
2014 BUDGET:EXPENDITURES
How much will we spend and on what will we spend
it?
Proposed Expenditure
s
Gener
al F
und
Debt S
ervi
ce F
und
Pensi
on Deb
t Ser
vice
Fund
Capita
l Pro
ject
s Fund
Transp
ortatio
n Fund
Bus Rep
lace
men
t Fund
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2014 Projected Expenditures By Fund and Category
Teacher Salaries & Benefits
Other Salaries & Benefits
Spec Ed Services & Co-ops
Custodial Services
Purchased Services
Debt Service
Utilities & Property Ins
Capital Outlays
Supplies & Materials
Other
Teach
ers
Teach
ers
Sta
ff
Deb
t S
erv
ice
62.3%22.2%
3.9%4.4%
2.5%2.0%
2.6%
2014 General Fund Estimated Expenditures
Teacher Salaries & Benefits
Other Salaries & Benefits
Spec Ed Services & Co-ops
Custodial Services
Purchased Services
Supplies & Materials
Utilities & Property Ins
Other
Proposed Expenditure
s
Teachers’ Salaries and Benefits
All Non-Teaching Staff Salaries and Benefits
But See Next 2 Slides!!!
100% of Referendum Fund will be used for teacher salaries and benefits! These are direct instructional
costs!
Proposed Expenditur
es
67.1%
19.4%
3.4%
3.9%2.2%1.8% 2.3%
2014 Combined General Fund and Referendum Fund Es-timated Expenditures
Teacher Salaries & Benefits
Other Salaries & Benefits
Spec Ed Ser-vices & Co-ops
Custodial Services
Purchased Services
Supplies & Ma-terials
Utilities & Property Ins
Other
All Non-Teach-ing Staff Salaries and Benefits
Proposed Expenditure
s
Teachers’ Salaries and Benefits
Scheduled Projected Scheduled ProjectedTotal Principal Total Principal Total
Outstanding to be Paid Outstanding to be Paid OutstandingDebt as of 7/1/2013 to Debt as of 1/1/2014 to Debt as of
06/30/13 12/31/13 12/31/13 12/31/14 12/31/14General Obligation Bonds:P.B. Refunding of 2013 6,730,000.00$ 285,000.00$ 6,445,000.00$ 585,000.00$ 5,860,000.00$
Subtotals - G. O. Bonds 6,730,000.00$ 285,000.00$ 6,445,000.00$ 585,000.00$ 5,860,000.00$
Lease-Rental Bonds:Lease Rental of 1999 CABS 2,661,989.10$ -$ 2,661,989.10$ -$ 2,661,989.10$ Lease Rental of 2000 CABS 459,630.80$ -$ 459,630.80$ -$ 459,630.80$ Lease Rental of 2002 CABS 5,501,137.90$ -$ 5,501,137.90$ -$ 5,501,137.90$ Lease Rental of 2003Z 1,927,853.00$ -$ 1,927,853.00$ -$ 1,927,853.00$ Lease Rental of 2005A 56,510,000.00$ 220,000.00$ 56,290,000.00$ 125,000.00$ 56,165,000.00$ Lease Rental of 2005Z 48,075,054.40$ 245,000.00$ 47,830,054.40$ 435,000.00$ 47,395,054.40$ Refunding of 2005Z 9,665,000.00$ 1,080,000.00$ 8,585,000.00$ 2,245,000.00$ 6,340,000.00$ Refunding of 2007 27,845,000.00$ 570,000.00$ 27,275,000.00$ 1,725,000.00$ 25,550,000.00$ Refunding of 2009 13,835,000.00$ 1,260,000.00$ 12,575,000.00$ 2,595,000.00$ 9,980,000.00$ Refunding of 2011 18,020,000.00$ 1,220,000.00$ 16,800,000.00$ 2,510,000.00$ 14,290,000.00$ Refunding of 2012A 4,020,341.55$ -$ 4,020,341.55$ -$ 4,020,341.55$ Refunding of 2012B 4,749,475.95$ -$ 4,749,475.95$ -$ 4,749,475.95$
Subtotals - Debt for Facilities 193,270,482.70$ 4,595,000.00$ 188,675,482.70$ 9,635,000.00$ 179,040,482.70$
TOTAL LONG-TERM DEBT 200,000,482.70$ 4,880,000.00$ 195,120,482.70$ 10,220,000.00$ 184,900,482.70$
Zionsville Community SchoolsSummary of Debt
As of June 30, 2013 with Projections for 2014
Proposed Expenditur
es
About Debt Service (Debt is Going Down!)•No new debt since 2005•$61,905,199.70 in principal paid off since 2005 to date
•We expect to refinance the 2005 bond issues in
2015, which will be nearly 60% of all debt then, for a significant savings•This budget continues our ongoing debt reduction
•
“No New Construction Debt”?
Zionsville Community Schools
• Projected enrollments through 2022-2023 school year do not exceed current capacities at the elementary and middle schools (but some rebalancing may be required in the future)
• The capacity of ZCHS is projected to be exceeded in 2018.
• The use of 2005 bond proceeds for ZCHS should add sufficient capacity for the next several years
Zionsville Community Schools
Total Debt drops below $200 million by year-end
As of 12/31/2014, debt will be just under $185 million
For 2015, the 2005 Bonds outstanding to refinance will be $103,560,054.40
Summary of the immediate future:
Recommendation:“No New Construction Debt” Window
• The goal of the Board and Superintendent is achievable for the next several years and should be acted upon.
• Appropriate parameters, including a delineation of the length and termination plan for the “No New Debt” declaration, must be formulated.
• An acknowledgement of variables/caveats and unknowns that could impact our situation must be incorporated and communicated well.
2014 Capital Projects Fund Estimated Expenditures
Salaries and Benefits
Purchased Services
Equipment and Capital Outlays
Utilities and Property In-surance
Other
22.0% Pur-chased Services
32.1%Salaries and Benefits
Estimated Expenditur
es
21.7% Utilities
& Insuranc
e
24.2% Building
Maintenance
79.5%
1.0%
15.5%
2.1% 1.8% 0.1%
2014 Transportation Fund Estimated Expenditures
Salaries and Benefits
Purchased Services
Supplies and Materials
Utilities and Property Insurance
Equipment and Capital Outlays
Other
79.5% Salaries and Bene-fits
15.5% Fuel, Parts, Tires, etc.
Estimated Expenditur
es
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250
1
2
3
4
5
6
7
8
9
10
2014 Bus Replacement PlanBuses to be Replaced
Nu
mb
er o
f B
use
s to
be
Rep
lace
d
Chart is per official plan. Actual expected 2014
purchases will be replacement of four or
(possibly five depending on price) Type “D” buses.
Estimated Expenditur
es
2014 BUDGET: CASH FLOWS AND CASH BALANCES
Will our budget be balanced?
YES
Projected Projected ProjectedCalendar Calendar School
Year Year Year2014 2015 2014-2015
Revenues:
General Fund 36,086,755$ 36,689,767$ 36,388,261$ Debt Service Funds (Combined) 18,400,053$ 20,844,557$ 19,365,806$ Capital Projects 4,114,311$ 4,220,117$ 4,167,214$ Transportation 3,332,228$ 3,417,986$ 3,375,107$ Bus Replacement 442,406$ 453,567$ 447,987$ Referendum Fund 5,441,934$ 5,411,934$ 5,426,934$ Rainy Day Fund 3,000$ 3,000$ 3,000$
Total Revenues 67,820,687$ 71,040,928$ 69,174,309$
PROJECTED REVENUESFOR 2014, 2015 and 2014-2015 School Year
Expenditures
General Fund 36,080,193$ 36,615,318$ 36,347,755$ Debt Service Funds (Combined) 18,400,053$ 20,844,557$ 19,365,806$ Capital Projects 4,221,692$ 4,095,617$ 4,158,655$ Transportation 3,011,076$ 3,093,875$ 3,052,476$ Bus Replacement 658,464$ 453,567$ 556,016$ Referendum Fund 5,209,041$ 5,365,312$ 5,287,177$ Rainy Day Fund 2,500$ 2,500$ 2,500$
Total Expenditures 67,583,019$ 70,470,746$ 68,770,385$
Net Combined Fund Surplus (Deficit) 237,668$ 570,182$ 403,924$
PROJECTED EXPENDITURES AND NET CHANGE TO FUND BALANCESFOR 2014, 2015 and 2014-2015 School Year
Projected
Calendar Year 2014
Projected
Calendar Year 2015
Projected School Year
2014-2015
2014 BUDGET:TAX RATES AND
TAX LEVIESWhat does all this mean
to the taxpayer?
Tax Rates and Levies
2009 2010 2011 2012 2013
$-
$0.5000
$1.0000
$1.5000
$2.0000
$2.5000
$3.0000
$3.5000
$4.0000
Total School Tax Rates - All Funds:Advertised vs. Actual 2009-2013 with 2014 Projected (including Referendum)
Actual
Predicted
Advertised
Rank Locality2012-Pay-2013
Tax Rate
1 Sheridan 3.3563$
2 IPS 3.3484$
3 MSD Wayne Twp 3.3204$
4 MSD Washington Twp 3.2941$
5 MSD Pike Township 3.2877$
6 Kokomo 3.2779$
7 Avon 3.2019$
8 Westfield 3.0947$
9 Clark-Pleasant 3.0270$
10 Brownsburg 3.0265$
11 Noblesville 3.0005$
12 West Lafayette 2.7788$
13 Lafayette 2.6076$
14 Tippecanoe 2.5956$
15 Zionsville 2.5584$
16 HSE 2.2194$
17 Lebanon 2.1576$
18 Center Grove 2.0483$
19 Carmel 2.0251$
20 MSD SW Allen 1.9906$
How do the total local property tax rates among these the cities, towns, and localities of these peers?
Tax Rates and Levies
Local property tax rates compared with peer
communities
We were 15th last year too among this same group
of peers.
$10
0,00
0
$20
0,00
0
$30
0,00
0
$40
0,00
0
$50
0,00
0
$60
0,00
0
$70
0,00
0
$80
0,00
0
$90
0,00
0
$1,
000,
000
$-
$0.5000
$1.0000
$1.5000
$2.0000
$2.5000
$3.0000
$3.5000
Effective Tax Rates Required to Trigger Circuit Breaker
Assesed Value of Home
Eff
ecti
ve T
ax R
ate
2013 Actual Tax Rate
Effective Tax Rates
90% of Homeowners pay LESS
than the actual tax rate.
Tax Rates and Levies
2014 Estimated Tax Rate
Under
$50,0
00
$50,0
00 to
$100
,000
$100
,000 t
o $15
0,000
$150
,000 t
o $20
0,000
$200
,000 t
o $25
0,000
$250
,000 t
o $30
0,000
$300
,000 t
o $35
0,000
$350
,000 t
o $40
0,000
$400
,000 t
o $45
0,000
$450
,000 t
o $50
0,000
$500
,000 t
o $55
0,000
$550
,000 t
o $60
0,000
$600
,000 t
o $65
0,000
$650
,000 t
o $70
0,000
$700
,000 t
o $75
0,000
$750
,000 t
o $80
0,000
$800
,000 t
o $85
0,000
$850
,000 t
o $90
0,000
$900
,000 t
o $95
0,000
$950
,000 t
o $1,0
00,00
0
Over $
1,000
,000
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
Assessed Values of Homes in School District N
umbe
r of
Hom
este
ads 2013 Equilib-
rium Point =
$147,171
2014 Equilib-rium Point =
$137,673
Under $100K
Tax Rates and Levies
Over $1
million
Mean ZCS home
assessed value is
$335,142
2014 BUDGET PRESENTATION SUMMARY:The five questions about the proposed
budget:1. How much would we actually spend and what will we spend it on? An
estimated $67.6 million will be expended.
2. What revenues and resources will we have to support the needed expenditures? All combined, revenues should be about $67.8 million, which will be made up of approximately 49% State Funding, 47% Property Taxes, and 4% Other Sources.
3. Will our budget be balanced? We expect the General Fund to be balanced . CPF may need to use some reserves for phase II of the high school roof project. All other funds will be balanced.
4. What does all this mean to the taxpayer? The total property tax bill for 2014 should be the same as 2013 for nearly all homeowners and rental and agricultural property, with commercial property likely seeing a small increase.
5. What is our long-term outlook? With the operating referendum in place, our outlook is stable through 2015. However, the state funding formula is already set by law. A continuation of the current statutes will cause steady decline for ZCS at least through FY2018. Left unchanged, this will produce higher class sizes and financial instability adversely impacting our core educational mission. Our foremost financial challenge is to avert this danger to ZCS through effecting fundamental legislative change.
Budget 2014
Thank You for
Your Kind Attention!