adopted annual budget - montrose high school ... teacher salary schedules ... superintendent’s...

INTRODUCTORY SECTION 2014 – 2015 BUDGET

Montrose County School District RE-1J | INTRODUCTORY SECTION 1

MONTROSE COUNTY SCHOOL DISTRICT RE-1J

2014-15

Adopted Annual Budget For the Fiscal Year Ended June 30, 2015

Submitted by the Superintendent and the Finance Department

P O B O X 1 0 , 0 0 0 | M O N T R O S E | C O L O R A D O | U S A | 8 1 4 0 2 W W W . M C S D . O R G

Montrose County School District RE-1J | i

Table of Contents

INTRODUCTORY SECTION ................................................................................... 1

Board of Education / District Office Administration ........................................................................ 2

Superintendent’s Budget Transmittal Letter ................................................................................... 3

The District Strategic Plan ................................................................................................................ 5

Executive Budget Summary ............................................................................................................. 6

Introduction ........................................................................................................................ 6

Demographics ..................................................................................................................... 6

Overview ............................................................................................................................. 6

Economic Outlook ............................................................................................................... 6

Financial Budgeting and Accounting ................................................................................... 8

Budget Goals and Objectives .............................................................................................. 8

General Fund Budget .......................................................................................................... 9

Other District Funds .......................................................................................................... 15

Budget Forecasts............................................................................................................... 16

Budget Compliance Statements .................................................................................................... 17

ORGANIZATIONAL SECTION .............................................................................. 19

School District Organizational Chart .............................................................................................. 20

District Map ................................................................................................................................... 21

Fund Accounting ............................................................................................................................ 22

Fund Organization Chart ................................................................................................................ 24

Chart of Accounts ........................................................................................................................... 25

Budget Procedures ......................................................................................................................... 25

Significant Budget Development Statutes, Policies, and Guidelines ............................................. 26

Budget Development Calendar ...................................................................................................... 29

FINANCIAL SECTION .......................................................................................... 31

Budget Revenue Assumptions ....................................................................................................... 32

Budget Expenditure Assumptions .................................................................................................. 32

Summary Budget Schedule – All Funds ......................................................................................... 34

Graphs ............................................................................................................................................ 36

Revenue Distribution Summary ........................................................................................ 36

Expenditure Distribution Summary .................................................................................. 36

Governmental Funds...................................................................................................................... 37

General Fund (Fund 10) .................................................................................................... 37

Insurance Reserve Fund (Fund 18) ................................................................................... 50

ii | Montrose County School District RE-1J

Nutritional Services Fund (Fund 21) ................................................................................. 52

Special Grants Fund (Fund 22) .......................................................................................... 54

Student Activity Fund (Fund 23) ....................................................................................... 58

Fee-in-Lieu Fund (Fund 26) ............................................................................................... 59

Debt Funds ........................................................................................................................ 61

Capital Projects Funds ....................................................................................................... 66

Proprietary Fund ............................................................................................................................ 70

Employee Medical Internal Service Fund (Fund 65) ......................................................... 70

Fiduciary Funds .............................................................................................................................. 72

Scholarship Trust Fund (Fund 79) ..................................................................................... 72

Charter School Component Unit Budgets ...................................................................................... 74

Passage Charter School ..................................................................................................... 74

Vista Charter School .......................................................................................................... 75

2014-2015 Summary Budget (CDE-18) .......................................................................................... 76

INFORMATIONAL SECTION ................................................................................ 77

Demographic Information ............................................................................................................. 78

Property Tax Information............................................................................................................... 79

October 2013 Student Count by School ........................................................................................ 80

Personnel Resource Allocation History .......................................................................................... 81

Bond Amortization Schedule ......................................................................................................... 82

Teacher Salary Schedules ............................................................................................................... 83

Performance Measurements ......................................................................................................... 84

Glossary .......................................................................................................................................... 88

INTRODUCTORY SECTION 2014 – 2015 BUDGET


INTRODUCTORY SECTION

2014 – 2015 BUDGET Board of Education / District Office Administration

2 INTRODUCTORY SECTION | Montrose County School District RE-1J

Board of Education / District Office Administration

Board of Education

Leann Tobin, District G ............................................................................. President

Tom West, District D ........................................................................ Vice-President

Mark Bray, District E ................................................................................ Secretary

Stu Tolen, District A ................................................................................. Treasurer

Seth Felix, District B ................................................................................... Director

Gayle Johnson, District C ............................................................................ Director

Phoebe Benziger, District F ........................................................................ Director

District Office Administration

Mark MacHale ................................................................................ Superintendent

Karin Slater ........................................................................... Chief Financial Officer

Marilyn Stahn ....................................................................................... Accountant

John Omohundro, CPA .......................................................................... Accountant

Superintendent’s Budget Transmittal Letter 2014-2015 BUDGET


Superintendent’s Budget Transmittal Letter

From: Mark MacHale, Superintendent of Schools

Date: May 30, 2014

To: RE-1J Governing Board

The 2014-2015 budget has been prepared in accordance with the following Board adopted budget goals:

1. Student achievement and learning are top priority.

2. The District recognizes that staff is our most valuable asset.

3. As good stewards, we must maintain the district facilities to the best of our ability.

This year we are budgeting revenues to take into account a forecasted decline in student enrollment. The decline is expected to be 85 students, which using the declining enrollment averaging that CDE allows, converts to 83 FTE (full-time equivalent). The decline is entirely due to a large graduating senior class .The budget will be based on this expected declining enrollment. This is a projected loss of revenue of $577,800.

As in the past, the state is requiring the District to budget a State Budget Stabilization Negative Factor. The current year amount is $6,188,600. This is the amount the District will realize as reduction in the state revenues. The negative factor actually reduced by $954,300 from the 2013-2014 budgeted amount of $7,142,900. The State is projecting higher revenue for the 2014-15 year which equates to an increase in the base student per pupil revenue of 2.8%, and the decrease in the Negative Factor.

Coming from our fund balance account will be the funding for: (same as 2013-2014)

Continuing steps and educational credits from the 12-13 negotiations: $1,125,000 which has been reduced from $1,256,900 due to staff attrition

Steps for eligible employees from 13-14 negotiations: $500,000

Educational credits in the form of lanes and clock hours for eligible employees from 13-14 negotiations: $150,000

Additional costs expected for the 2014-15 year which will be funded from new state revenues:

Mandatory PERA increase for all employees .09%: $233,600

5% increase in the District’s contribution to employee medical: $184,500

Transfer of three Title I teachers to General Fund (includes benefits): $156,000

Add four teachers to elementary classrooms (includes benefits): $249,200

Addition of a custodial supervisor (includes benefits): $58,000

1% across-the-board salary increase for all employees: $242,800

Increase hourly salaries an additional 25 cents per hour: $100,000

Increase salaries of exempt (salaried) staff $500 per year (includes all teachers): $234,500

Increase hourly wages of custodial crew leaders by $1 per hour: $27,000

Allow steps, lanes, and clock hours for eligible employees: $422,460

2014 – 2015 BUDGET Superintendent’s Budget Transmittal Letter


Additional work days during the year for head school secretaries: $15,000

Additional amounts for staff professional development(includes benefits): $80,000

Negotiated additions to discretionary school spending budgets: $70,000

Positions that are vacated during the year due to attrition and limited term positions will be refilled as needed.

Almost all of the points above relate in some way to employee compensation. We live in a community with a higher-than-average cost of living, yet we historically have offered compensation at a lower rate than other similar school districts. In able to hire and retain top talent, we must offer competitive compensation in order to do so.

We acknowledge that funding ongoing expenditures such as salaries and benefits from fund balance is not a sustainable approach to budgeting. We anticipate that the unassigned fund balance in the General Fund will remain as a positive amount through the 2015-2016 year, but additional revenue will be required in future years in order to sustain current spending patterns.

While revenues appear to be increasing, the District still is operating below full funding. Our limited resources will be focused on increasing student achievement, recognizing our employees and maintaining our facilities to the best of our ability.

The District Strategic Plan 2014-2015 BUDGET


The District Strategic Plan

2014 – 2015 BUDGET Executive Budget Summary


Executive Budget Summary

Introduction This document provides a comprehensive summary of budgeting for the Montrose County School District. It includes the following information:

An organizational overview

District mission and objectives

Current budget assumptions

Long-term outlook

Staffing and enrollment summaries

Performance data

Statistical data

Demographics Montrose County School District RE-1J (MCSD) is a rural school district located in west-central Colorado. It serves approximately 6,000 students in 11 schools, an Early Childhood Center, and an online Virtual Academy. The City of Montrose and the Town of Olathe are the major communities served by these schools. Student levels range from preschool through 12th grade.

The District is the largest employer in Montrose County with over 800 full- and part-time employees. Detailed staffing information is presented later in this document.

Overview As with all school districts in Colorado, MCSD faces continuing budget challenges. K-12 public education funding has been reduced over the last five years due to declining state revenues resulting from the recession. The outlook statewide is improving as the economy recovers, but western Colorado, and Montrose County in particular, are lagging in this recovery, and the long-term outlook is guarded. The following document will address the local, state, and national economic situation and the impacts on this school district.

Economic Outlook

Local Economy Montrose County was particularly hard hit by the recent recession. While farming and ranching play a large part in the local economy, tourism and recreation and the energy industry are also quite important to the local scene. As the recession took hold, spending by the public on recreation and travel declined, and jobs in the tourism industry were put in jeopardy. A decline in the local energy industry, both in oil/gas and coal mining, spill over into Montrose County due to workers who commute to nearby jobs in those fields. Unemployment rates, which hit its lowest rate in 2008 at just over 3%, jumped to just under 13% in 2010. As a result, families with school-age children have moved out of the area, and the local student population declined. A student count increase between 2012 and 2013 was the result of opening the District’s online virtual academy. This brought in local students who historically enrolled in other districts’ on-line programs.

As of the end of 2013, unemployment came down to about 8.5%, and assessed property values declined by 13%. The student population decline appears to have bottomed out, but long-term forecasting by the State Demography office indicates that Montrose County will see a very modest 1% to 2% per-year growth for the next 25 years.

Executive Budget Summary 2014-2015 BUDGET


State Economy As a whole, the State of Colorado fared well through the recent recession. The agricultural market (which greatly affects Montrose County) remained strong. Drought conditions contributed to lower production, which boosted prices and actually increased overall revenue.

School districts in Colorado are funded via the School Finance Act (the Act). The Act prescribes total program funding using a per-pupil funding formula. To accommodate state revenue challenges, the state incorporated what has been titled as a negative factor into the school finance funding formula. The negative factor is a factor that proportionately reduces prescribed funding levels for each school district. This negative factor is the mechanism the state has implemented to reduce the level of K-12 funding while remaining within acceptable legal limits of the funding formula.

This negative factor has created a deficit funding gap of 16 percent or more than $1 Billion statewide. This means that school districts across the state have been receiving $1 Billion less than they should be receiving under a fully funded school finance formula. The reduction of funding has been spread across districts in Colorado. The following chart shows the District’s share of the Negative Factor, which topped out in school year 2012-13 at $7.37 million. The District’s 2014-15 share is anticipated to be in excess of $6.2 million.

$-

$2

$4

$6

$8

Mill

ion

s

MCSD Negative Factor Share

In calendar year 2013, the State had a budget surplus, which should positively affect school budgets going forward. For the 2014-15 school year, the negative factor is about 13% (down from about 15.4% in 2013-14), resulting in a per-pupil funding amount of $6,961, an increase of $371 or 6% over 2013-14.

$6,833

$7,169

$6,501 $6,430 $6,462 $6,590

$6,961

$6,000

$6,400

$6,800

$7,200

$7,600

MCSD Per-Pupil Funding by Year



National Economy The graph on the following page shows the percent change in Gross Domestic Product (GDP), which is commonly used as a benchmark to indicate the general health of the economy. Values over zero indicate growth in the economy. The graph indicates that the U.S. economy has been in a slow growth phase since early 2010. This should be encouraging in the near term.

Another concern to government entities such as MCSD has been the inability of the U.S. Legislature to pass budgets and thereby fund education programs. The sequestration cuts that took effect in March 2013 resulted in substantial cuts to a number of Federal education programs. The Consolidated Appropriations Act of 2014, signed into law in January 2014, restores this sequestration and should result in increased Federal Grant funding for the coming school year.

Financial Budgeting and Accounting The District follows generally accepted accounting principles (GAAP) established by the Governmental Accounting Standards Board (GASB) for both accounting and budgeting. The majority of the day-to-day operations of the school district are accounted for in the General Fund. Definitions of each of the funds maintained by the District are presented later in this executive summary. In addition, budgeting and accounting is governed by Administrative Policy.

In the late winter, the administration develops pupil enrollment forecasts. This forecast is used to develop other key budget assumptions as well as determine allocations for school staffing equivalents and financial resources. During April and early May, the finance department works with information taken from salary negotiations, student count projections, and Colorado Department of Education estimates for per-pupil funding to formulate the budget. The Board must adopt and appropriate a budget annually by formal resolution no later than June 30 of each year.

Budget Goals and Objectives The vision of the District is to ensure that all students have a safe and academically rigorous environment in which to learn, and that all students will graduate with life skills and knowledge required to enter into the workforce, to begin a career, and to attend college or other post-secondary education opportunities of their choice, without remediation. All budget monies that this district spends are dedicated toward that vision. To that end, the budget will be designed to (1) support this vision and the Board goals, (2) recognize that staff is our most valuable asset, and (3) promote good stewardship of our public funds.



The District has made great strides in the past several years in improving student achievement. The District is no longer on an improvement plan and has attained full accreditation status. While we are happy with the improvements made, we still see room for growth.

In order to support the Strategic Plan, the following items have been identified as budget priorities for 2014-15:

1. Develop and maintain a staff compensation package that maintains or enhances the District’s competitive position relative to other school districts in the area, recognizing that staff is our most valuable asset.

2. Provide necessary resources to facilitate attainment of the two major goals noted above.

3. Continue to provide resources that maintain jobs in the district, maintain reasonable class sizes to the extent possible, and ensure that current student programs can continue.

General Fund Budget

Total Appropriation The General Fund adopted budget appropriation for FY2014-15 is $41,628,345, an increase of $1,939,245 or 4.9% from the prior year final adjusted budget of $39,689,100. The total appropriation is comprised of the beginning fund balance plus revenues projected to be received during the fiscal year. Increases in the appropriation are projected to result mainly from increases in per-pupil funding from the State.

Beginning Fund Balance Colorado Statutes require that certain reserves must be funded while other designations may be approved by the Board of Education. The District has fully funded their liability for accrued salary and benefits ($4,428,461) as noted in the Financial Statements for FY2012-13. The adopted budget anticipates the resources necessary to maintain the accrual at a fully funded level. Excluding accruals, the total beginning fund equity, restricted, committed, assigned, and unassigned balances going into FY2014-15 are estimated to be $7,107,023 or 17.6% of total appropriated resources.

Sources of Revenue Approximately 95% of the revenue anticipated to be received by the General Fund is determined by the School Finance Act of 1994 as amended during the 2014 legislative session and the provisions of section 17 of Article IX of the state constitution (Amendment 23). The Act and Constitution determine per pupil funding levels for each Colorado public school district. Property taxes, specific ownership taxes (vehicle tax) and state aid provide the required funding for the Act.

The largest source of total revenue for the General Fund, 68%, is from state aid equalization. Local property taxpayers provide a total of 27%. Other sources of revenue include specific ownership taxes from vehicle registrations, other local sources, and other state sources.

Major revenue source changes for FY2014-15 are anticipated to include the following:

Legislation at the State level has increased per-pupil funding, resulting in an estimated total increase in District revenue of about $1.9 million.

The District’s student count is expected to drop by about 85 full-time students.



The following graph and table show the anticipated sources of General Fund revenues for 2014-15:

State Sources, 72.1%

Property Taxes, 23.3%

Specific Ownership Taxes, 3.2%

Other Local Revenue,

0.4%

Federal Sources, 0.6%

Intermediate Sources, 0.4%

General Fund Revenue Sources

Revenue Types Adopted % of Budget Final Budget % of Budget % Change

Property Taxes (incl. Delinq./Interest) 10,099,700$ 23.3% 11,022,500$ 26.7% -8.4%

Specific Ownership Taxes 1,405,800 3.2% 1,186,200 2.9% 18.5%

Interest Earned 4,000 0.0% 4,000 0.0% 0.0%

Other Local Revenue 177,500 0.4% 254,000 0.6% -30.1%

Intermediate Sources 154,000 0.4% 159,000 0.4% -3.1%

State Equalization 35,751,000 82.6% 33,991,200 82.4% 5.2%

State of Colorado Negative Factor (6,188,600) -14.3% (7,142,900) -17.3% -13.4%

State Categorical and Other 1,607,000 3.7% 1,594,600 3.9% 0.8%

Federal 248,500 0.6% 170,000 0.4% 46.2%

TOTAL REVENUE 43,258,900 100.0% 41,238,600 100.0% 4.9%

LESS: Transfers to Other Funds (1,797,100) (2,266,400) -20.7%

LESS: Charter School Allocations (1,242,200) (1,242,200) 0.0%

AVAILABLE REVENUE 40,219,600$ 37,730,000$ 6.6%

FY2014-15 FY2013-14

Total Program Funding The Total Program Funding formula is set forth by the School Finance Act of 1994 as amended and determines approximately 95% of the district’s General Fund revenue. Total Program Funding, or the portion of state and local revenue available from school finance laws, is determined using a complex per pupil revenue formula multiplied by a pupil count adjusted to equate to full-time equivalent pupils. To accommodate for a necessary reduction in state aid, a “negative factor” was added in the formula starting in 2010-11 to produce an equitable reduction across the state. The negative factor impact has been minimized slightly from the previous four years due to easing of State budget revenue shortfalls.

During each session of the General Assembly, legislators set a base dollar amount for each “funded” pupil in Colorado’s 178 school districts. Legislators also periodically review factors related to staffing costs, cost-of-living, district size and “at-risk” pupils. The end result of the formula is the amount the state deems necessary to educate a child in a given district. The Colorado Constitution mandates the base per pupil dollar amount to increase each year by the rate of inflation for the most recent completed calendar year (determined by the Denver-Boulder-Greeley CPI). The Denver-Boulder-



Greeley inflation rate for Calendar Year 2013 was 2.8%. Therefore, the base amount per FTE student in Colorado for 2014-15 is $6,121, an increase of $166, or 2.77%, over 2013-14, before application of the negative factor. The addition of the negative factor reduces statewide funding of pre K-12 education by $894,302,068 from the amount otherwise required by the current School Finance Act. The impact of the negative factor on the district is a reduction to Total Program Funding of $6,223,454 or $1,054 per pupil below what the current School Finance Act should provide.

Student Enrollment As stated above, State per-pupil funding accounts for the largest percentage of revenue for the District. The funded pupil count is equal to the number of students enrolled in the District on October 1, and is adjusted for characteristics of certain student groups, such as half-day kindergarten students. The following graph shows historical and projected pupil counts for the District.

5,500

5,700

5,900

6,100

2006 2007 2008 2009 2010 2011 2012 2013EST.

2014EST.

2015EST.

2016

Count 5,672 5,856 6,010 6,011 5,971 5,859 5,768 5,804 5,748 5,740 5,745

Stu

de

nt

Co

un

t

MCSD October Student CountsFull Time Equivalents (FTE)

The Colorado Demography Office predicts that Montrose County will grow at a rate of 1% - 2% through 2040. However, in the short term, the District foresees student counts dropping in the current year, based on current enrollments. The graduating class of 2014 is particularly large, so a drop is expected for 2014-15, but slight increases are predicted for the next couple years thereafter.

Property Tax Revenues The District receives approximately 26% of total revenues from property taxes collected by Montrose, Ouray, and Gunnison counties. Each county’s assessor’s office establishes the taxable value of real estate for various types of properties, and periodically reassesses values based on market activity from the previous assessment period. A reassessment was done in 2013 in Montrose County that resulted in a 13% decrease to the District’s expected tax revenues, a drop of about $1,495,000. Fortunately, this loss of local revenue is replaced by an increase in state revenue to equal total program funding.

Expenditures Expenditures for the General Fund are first allocated by programs that identify specific activities such as classroom education, special education, maintenance, etc. Within each program, expenditures are further allocated to specific objects such as salaries, benefits, purchased services, etc.



Major Changes in Budgeted Expenditures by Program The changes in budgeted expenditures by program for FY2014-15 result from salary and benefit increases for staff.

The General Fund budget by program is shown in the following chart.

Instruction, 62.6%

Student Support, 6.8%

Instructional Support, 3.3%

General Admin, 1.8%

School Admin, 6.5%Business, 1.9%

Operations & Maintenance,

10.8%

Student Transportation,

4.3%

Central Services, 1.8%

Other, 0.2%

General Fund Expenditures by Program

Changes in budgeted expenditures by program in the General Fund from FY2013-14 to FY2014-15 are shown below.

Programs Adopted % of Budget Final Budget % of Budget % Change

Instruction 26,078,860$ 62.6% 25,118,500$ 63.3% 3.8%

Student Support 2,811,570 6.8% 2,427,700 6.1% 15.8%

Instructional Support 1,393,005 3.3% 1,274,100 3.2% 9.3%

General Administration 759,800 1.8% 744,300 1.9% 2.1%

School Administration 2,692,465 6.5% 2,539,300 6.4% 6.0%

Business 787,735 1.9% 766,900 1.9% 2.7%

Operations & Maintenance 4,492,570 10.8% 4,247,700 10.7% 5.8%

Student Transportation 1,788,100 4.3% 1,794,400 4.5% -0.4%

Central Services 746,990 1.8% 717,000 1.8% 4.2%

Other 77,250 0.2% 59,200 0.1% 30.5%

Total 41,628,345$ 100.0% 39,689,100$ 100.0% 4.9%

Fund Balances

Nonspendable 92,000$ 92,000$ 0.0%

Restricted 1,290,000 1,389,100 -7.1%

Committed 3,275,000 5,017,600 -34.7%

Assigned 190,000 190,000 0.0%

Unassigned 51,278 409,123 -87.5%

Total Reserves 4,898,278 7,097,823 -31.0%

Total Expenditures and

Reserves 46,526,623$ 46,786,923$ -0.6%

FY2014-15 FY2013-14



Expenditures by Object In addition to budgeting expenditures by program, expenditures are also budgeted into groupings referred to as objects. Objects refer to the service or item that is being purchased. There are eight major object groups required by the state. Those groups include salaries, benefits, purchased professional services, purchased property services, other purchased services, supplies, property and other uses. Salary costs include regular employee wages, overtime pay, supplemental pay and substitute employee pay. Benefits include health, vision and dental premiums as well as contributions to the state mandatory retirement system (PERA). Purchased professional services include non-employee costs for services provided by attorneys, auditors, bankers and consultants. Purchased property services include non-employee costs for repair of buildings and equipment, rental of facilities or equipment and water and trash services. Other purchased services include costs related to field trips, tuition paid to other entities, communications, printing, postage, insurance premiums and travel. Supplies include natural gas and electric utilities in addition to typical office and classroom supply items. Property costs include non-capital assets (unit cost between $500 and $5,000) and capital assets (unit cost greater than $5,000). Other uses include inter-fund transfers and payments of principal and interest on short-term notes and long-term debts.

The following chart depicts adopted budgeted expenditures in the General Fund by object. Employee compensation and benefits account for 87% of budgeted expenditures.

Salaries, 65.5%

Benefits, 21.1%Purchased

Services, 8.1%Supplies, 4.2%

Capital Outlay, 0.3%

Other, 0.7%

General Fund Expenditures by Object



Changes in budgeted expenditures by object from the prior fiscal year are as follows:

Objects Adopted % of Budget Final Budget % of Budget % Change

Salaries 27,279,205$ 65.5% 26,168,100$ 65.9% 4.2%

Benefits 8,780,020 21.1% 8,059,200 20.3% 8.9%

Purchased Services 3,381,287 8.1% 3,360,500 8.5% 0.6%

Supplies 1,761,007 4.2% 1,959,200 4.9% -10.1%

Capital Outlay 138,276 0.3% 125,300 0.3% 10.4%

Contingency and Other 288,550 0.7% 16,800 0.0% 1617.6%

Total 41,628,345$ 100.0% 39,689,100$ 100.0% 4.9%

Fund Balances

Nonspendable 92,000$ 92,000$ 0.0%

Restricted 1,290,000 1,389,100 -7.1%

Committed 3,275,000 5,017,600 -34.7%

Assigned 190,000 190,000 0.0%

Unassigned 51,278 409,123 -87.5%

Total Reserves 4,898,278 7,097,823 -31.0%

Total Expenditures and

Reserves 46,526,623$ 46,786,923$ -0.6%

FY2014-15 FY2013-14

Major Changes in Budgeted Object Expenditures The major changes in expenditures budgeted by object are documented as follows:

Increases in salaries consist of the following:

Academic increments for eligible teachers

“Experience” (step) increases amounting to approximately 2% for eligible employees.

An additional overall salary increase for all employees, including 1% across-the-board increase and specific dollar-amount increases for various employee categories

Increases in benefits consist of the following:

Mandatory 0.9% increase in employer contributions to the PERA pension plan for all employees

Increases in the cost of health insurance coverage of 5%

General Fund Authorized Staffing/Compensation All staff positions approved by the Board of Education have been incorporated into this budget. Specific assignments, total staff numbers and board approved compensation schedules are included in the Informational Section of this budget.

Insurance Reserve Fund (Fund 18) The Insurance Reserve Fund is a sub-fund of the General Fund used to account for transactions related to workers compensation, property, auto, casualty, and liability insurance. Although it is shown as a part of the General Fund on the District’s financial statements, it is budgeted separately. The budget for 2014-15 is established at $765,500. The usual allocation from the General Fund will be smaller this year due to a planned spend-down of fund balance of about $300,000.



Other District Funds

Special Revenue Funds Funds used to account for the proceeds from special revenue sources that are legally restricted to expenditure for specified purposes are referred to as Special Revenue Funds.

Nutritional Services Fund (Fund 21) The Nutritional Services Fund was accounted for as an Enterprise Fund (Fund 51) in prior years. CDE changed the fund type for this fund effective with this fiscal year. This fund accounts for the activities of the District’s school breakfast and lunch programs. The Fund has operated in the past as a business enterprise with a revenue-based budget using a profit and loss format, due to its Enterprise designation. While the fund type designation has changed, the District’s philosophy regarding operation and budgeting will not change. The budget for 2014-15 is established at $1,977,150.

Designated Purpose Grant Fund (Fund 22) Designated purpose grants are external funds that are received mostly from the U.S. Department of Education to provide for a particular group or need. Generally, the funds must supplement the district’s expenditures for these activities/needs and should not be used to supplant district responsibilities. The fund is used to account for a variety of grants that are detailed in the specific budget section. Title I, II, III, IV, and V grants, IDEA, Perkins, S.W.A.P, and other state and local grants are recorded in the Designated Purpose Grant Fund. Federal budget sequestration reduced grant reimbursement for 2013-14, but sequestration was rescinded in early 2014, so funding levels are expected to rise for the coming year. The budget for 2014-15 is established at $5,690,460.

Student Activities Fund (Fund 23) The Student Activities Fund is used to record the financial transactions related to approved academic and sports activities within the schools. Each school has its own set of activity funds. Revenues to support these activities come primarily from fees charged to the students and from fundraising donations. The budget for 2014-15 is established at $1,600,000.

Fee in Lieu Fund (Fund 26) The Fee in Lieu Fund is used to record revenues from new real estate development in Montrose County and is used to fund future capital projects. Currently, no expenditures from this fund have been budgeted.

Debt Service Funds Debt Service Funds are used to service the long-term debts of the District, including principal, interest, and related expenses.

Bond Redemption Fund (Fund 31) The district utilizes the Bond Redemption Fund, as specified in C.R.S. 22-45-103(b), to finance and account for the payment of principal and interest on all long-term bonded debt of the district. The budget for 2014-15 is established at $782,000, which covers payments for bonded debt already currently in existence.

Capital Lease/QZAB Fund (Fund 39) The Capital Lease/QZAB Fund accounts for resources to be used to repay the Qualified Zone Academy Bond (QZAB) debt and other long-term debt obligations. The budget for 2014-15 is established at $400,000.



Capital Projects Funds The District maintains two funds related to capital expenditures.

Building Fund (Fund 41) The Building Fund is used to account for the construction of large projects and large repairs to facilities. No such current projects are anticipated in the current year, and this fund is not currently budgeting any expenditures. A $200,000 transfer from the General Fund is budgeted to allow for future construction projects and emergency repairs.

Capital Reserve Capital Projects Fund (Fund 43) The Capital Reserve Capital Projects Fund was reclassified in 2011 from the Special Projects Fund, Capital Reserve. This fund is used to account for the purposes and limitations specified by Section 22-45-103(1)(c), C.R.S., including the acquisition of sites, buildings, equipment, and vehicles. The majority of revenues to this fund come from transfers from other funds. The budget for 2014-15 is established at $1,187,500.

Internal Service Funds Internal Service Funds account for operations undertaken by District Staff that primarily support the District and/or its employees. The District’s only internal service fund is the Employee Medical Benefit Program Fund (Fund 65), which services the District’s self-funded medical insurance program. The budget for 2014-15 is established at $5,956,200.

Fiduciary Funds Fiduciary Funds are used to account for funds held by the District in a trustee capacity for others. The District’s only fiduciary fund is the Scholarship Trust Fund (Fund 79), which accounts for scholarship funds held by the District for students. The budget for 2014-15 is established at $55,000.

Budget Forecasts The District foresees a stabilization in student counts for the next few years, which will translate into a more even funding stream. We expect that the Negative Factor will reduce slowly over the next several years as well, which should mean an increase in per-pupil funding. We are aware that we are currently operating in an overspent situation, as is evidenced by the use of fund balance. The majority of the overspending is related to salaries and benefits, which are ongoing expenses. We realize that any Negative Factor reduction which results in additional State funding must first be applied to reducing and eliminating overspending. A concerted effort must be made to no budget any further use of existing fund balances.

The District plans to introduce a mill levy override proposition on the November 2014 ballot. The yearly proceeds of approximaately $2,913,000 would be used to fund personnel, teaching and learning materials, technology, and learning environment. The override would have an initial life of five years. Since passage of this issue is uncertain, the curent budget does not reflect this additional amount.

Budget Compliance Statements 2014-2015 BUDGET


Budget Compliance Statements

In Compliance with C.R.S. 22-44-105, this budget’s revenue projections were prepared using information provided by the Colorado Department of Education, the County Assessor, the Federal government, and other sources using methods recommended in the Colorado School District Financial Policies and Procedures Handbook. This budget’s expenditure estimates were prepared based on program needs, enrollment projections, mandated requirements, employee contracts, contracted services and anticipated changes in economic conditions using methods described in the Financial Policies and Procedures Handbook. Beginning fund balances and revenues equal or exceed budgeted expenditures and reserves.

In compliance with C.R.S. 22-44-105, this budget includes actual audited revenues, expenditures and fund balances for the last completed fiscal year. The figures are contained in the District’s audited financial statement report that is available online at www.mcsd.org under the “Business Office and Finance -> Financial Transparency” link or through the Colorado Department of Education or the Colorado State Auditor’s Office. Also, this budget includes the budgeted and estimated actual expenditures for the current fiscal year for comparison to the Fiscal Year 2013-2014 budget.

In compliance with C.R.S. 22-44-105, the fiscal year 2014-2015 budget has been prepared in accordance with the revenue, expenditures, tax limitation and reserve requirements of Article X, Section 20 of the Colorado State Constitution.

Lastly, this budget was developed and is presented in accordance with Meritorious Budget criteria established by the Association of School Business Officials International (ASBO).

2014 – 2015 BUDGET Budget Compliance Statements


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ORGANIZATIONAL SECTION 2014 – 2015 BUDGET

Montrose County School District RE-1J | ORGANIZATIONAL SECTION 19

ORGANIZATIONAL SECTION

2014 – 2015 BUDGET School District Organizational Chart

20 ORGANIZATIONAL SECTION | Montrose County School District RE-1J

School District Organizational Chart

District Map 2014-2015 BUDGET


District Map

2014 – 2015 BUDGET Fund Accounting


Fund Accounting

The accounts of the district are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds can be grouped into the following three categories. Basis of accounting is modified accrual in compliance with Generally Accepted Accounting Principles (GAAP) governmental reporting requirements.

1. GOVERNMENTAL FUNDS

General Fund (Fund 10) —As the district’s major operating fund, the General Fund accounts for the ordinary operating expenditures financed by property taxes, state equalization payments, service charges, and other sources. The fund includes all resources and expenditures not legally or properly accounted for in other funds as directed by C.R.S 22- 45-103(1)(a). The General Fund balance is available to the district for any purpose provided it is expended or transferred according to Colorado Revised Statutes.

The General Fund operating budget contains over 70% of the District’s total expenditures, and will therefore be shown in greater detail in the Financial section.

Special Revenue Funds —Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are restricted to expenditures for specific purposes. The district maintains three Special Revenue Funds:

1. The Nutritional Services Fund (Fund 21) is used to account for all revenues and expenditures associated with providing breakfast and lunch for students and staff. Prior to this fiscal year, this fund was designated as an Enterprise Fund, and as such, was financed and operated in a manner similar to private business enterprise. Despite the change in designation to a special revenue fund, the District anticipates that this fund will continue to be managed and budgeted in the same manner.

2. The Designated Purpose Grant Fund (Fund 22) is used to account for the various federal, state and local grants awarded to the district to accomplish specific activities.

3. The Student Activity Fund (Fund 23) is used to account for student activities at each of the schools. Such activities are funded by student payments, activity gate fees, and fund-raising activities.

4. The Fee-in-Lieu Fund (Fund 26) is used to account for monies received from new developments and is used for future capital projects.

Debt Service Funds —Debt Service Funds account for the accumulation of resources and payment of long-term debt used to finance capital construction and land acquisition. The District uses two funds to account for debt service, which are combined for purposes of the District’s audited financial statements:

1. The district utilizes the Bond Redemption Fund (Fund 31), as specified in C.R.S. 22-45-103(b), to finance and account for the payment of principal and interest on all long-term bonded general obligation debt of the district.

Fund Accounting 2014-2015 BUDGET


2. The Capital Lease/QZAB Fund (Fund 39) is utilized to finance and account for the payment of principal and interest on long-term leases and Qualified Zone Academy Bonds (QZAB).

Capital Projects Funds –Capital Project Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, acquisition or construction of major capital facilities and other capital assets (other than those financed by proprietary funds and trust funds). The District uses two funds to account for capital projects, which are combined for purposes of the District’s audited financial statements:

1. The Building Fund (Fund 41) is used to account for capital construction.

2. The Capital Reserve Capital Projects Fund (Fund 43) was reclassified in 2011 from the Special Projects Fund, Capital Reserve. This fund is used to account for the purposes and limitations specified by Section 22-45-103(1)(c), C.R.S., including the acquisition of sites, buildings, equipment, and vehicles.

2. PROPRIETARY FUNDS

Internal Service Fund – Internal Service Funds are used to account for the financing, on a cost-reimbursement basis of goods and services provided by one department or agency to other departments or agencies within the same government or to other governments or not-for-profit organizations. The Employee Medical Benefit Program Fund (Fund 65) is used to account for all revenues and expenses related to the District’s self funded medical/dental/vision insurance plan.

3. FIDUCIARY FUNDS

Expendable Trust and Agency Funds are used to account for assets held by the government as an agent for individuals, private organizations, and/or other funds. The district uses the Scholarship Trust Fund (Fund 79), which accounts for assets held by the District in a trustee capacity to provide higher education scholarships for students.

2014 – 2015 BUDGET Fund Organization Chart


Fund Organization Chart

General Special Revenue Debt Service Capital Projects

General Fund (10)Nutritional Services Fund

(21)

Bond Redemption Fund

(31) Building Fund (41)

Insurance Reserve Fund

(18)

Designated Purpose

Grant Fund (22)

Capital Lease/QZAB Fund

(39)

Capital Reserve Capital

Projects Fund (43)Student Activity

Fund (23)Fee-in-Lieu Fund (26)

Scholarship Fund (79)

MONTROSE COUNTY SCHOOL DISTRICT RE-1J

Fund Organization Chart

GOVERNMENTAL FUNDS

PROPRIETARY FUND

FIDUCIARY FUND

Internal Service

Employee Medical Benefits Program Fund (65)

Chart of Accounts 2014-2015 BUDGET


Chart of Accounts

Colorado Revised Statutes (C.R.S), Colorado Code of Regulations (C.C.R.), and Code of Federal Regulations (C.F.R.) stipulate the requirements for the funds and accounts used by school districts. The following information is provided to assist the readers of this document to identify revenue sources and program expenditures. This document provides only a brief overview of the required chart of accounts. Individuals seeking more detail may contact the Business Office for a complete chart of accounts document.

The following diagram illustrates the format and sequencing of the dimensions of the required reporting for revenues, expenditures, and balance sheet accounts.

XX - XXX - XX - XXXX - XXXX - XXX - XXXX Fund

Location SRE

Program Source

Equity/Liability/Asset Job

Classification Grant/Project

Budget Procedures

The district adheres to the following procedures in establishing the budgetary data reflected in the financial statements:

1. Budgets are required by state law, except fiduciary fund types. Annual appropriated budgets are adopted for all funds. During May, the Superintendent of Schools submits to the Board of Education a proposed budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted by the Board of Education to obtain taxpayer comments on the proposed budget.

3. Prior to June 30 the budget is adopted and appropriated by formal resolution.

4. Expenditures may not legally exceed appropriations at the fund level. Authorization to transfer budgeted amounts between departments within any fund and the reallocation of budget line items within any department in the General Fund rests with administration. Revisions that alter the total expenditures of any fund must be approved by the Board of Education.

5. Budgets for all fund types are adopted on a basis consistent with generally accepted accounting principles.

6. All original and supplemental unencumbered appropriations for all funds lapse at the end of the fiscal year. (Certain uncommitted general fund school allocations are re-appropriated in the succeeding fiscal year by administrative policy).

2014 – 2015 BUDGET Significant Budget Development Statutes, Policies, and Guidelines


7. Formal budgetary integration is employed as a management control device during the year for all funds consistent with the general obligation bond indenture and other statutory provisions. All funds must complete the year within the amount of their legally authorized appropriation.

8. Appropriation amounts are as originally adopted, or as amended by the Board of Education throughout the year by supplemental appropriations.

Significant Budget Development Statutes, Policies, and Guidelines

The Purpose of a Budget

The purpose of a budget is to provide a plan of financial operation, incorporating an estimate of proposed expenditures for a given period and a purpose that includes the proposed means of financing that plan. To achieve this basic purpose, a comprehensive budget system must be integrated with the financial accounting system. Detailed budget planning allows the district to reflect educational values and needs. The structure and format provided by a well-designed budget promotes rational decision-making regarding the importance of various school district services. In this way, administrators and the Board of Education are assisted in educational planning as well as the prioritization and planning of all district operations through the allocation of resources.

BLong Range Planning

The District’s long range planning process assures that department and school site plans align closely with the district’s mission and belief statements. Each site has developed objectives and detailed action plans that are intended to improve student achievement and the overall effectiveness of the district’s operations.

Budgets are reviewed on an ongoing basis for accomplished actions and costs. An annual review process assures that each plan reflects the changing needs of the site. For example, schools might revise elements in their site plan to reflect priorities identified during the accreditation process.

The Budget Process

The budget process involves multiple steps, which includes identification of district goals, budget calendar, budget projections, budget content, program budgeting, and the utilization and presentation of prescribed forms. In addition to the preparation of the operating budget, the capital budget must be prepared. The capital budget is based on a long-range plan, prioritized based on useful life of systems maintenance, safety and improvements to district buildings. The impact of capital projects is considered when developing the operating budget.

A. Budgetary Accounting

The budget serves as the basis for information appearing on required reports, as an integral part of the accounting records and as a tool for management control of expenditures during the fiscal year. The district’s budget is prepared on Generally Accepted Accounting Principles (GAAP) basis. A GAAP budget includes all expenditures incurred and revenue earned during the period, regardless of the timing when cash is actually received or paid.

Significant Budget Development Statutes, Policies, and Guidelines 2014-2015 BUDGET


B. Budget Projections

In order to prepare budget projections for the ensuing fiscal year, the district has developed underlying assumptions, aligned with the Board’s objectives and goals, administrative policies, and the district’s mission statement, for use in forecasting sources and uses of funds.

1. Beginning Fund Balance

The district determines an estimate of year-end fund balances to be carried forward to the ensuing year as beginning balances. Governmental Accounting Standards Board (GASB) issued Statement No. 54 dictates the categories and terminology used to describe fund balance components, including constraints on the specific purposes for which the fund balance can be spent. Restricted Fund Balance is governed by laws through constitutional provisions or enabling legislation. Committed Fund Balance has limitations imposed at the highest level of decision making authority of the entity. Assigned Fund Balance can be established by the superintendent or a designee. Classification of Fund Balance requires projection of accounts payable and receivable, expenditures, and revenues for the remaining portion of the current budget year.

2. Revenues

For a review of the major revenue sources and the projection process, see detailed “Revenue Assumptions” presented in the Financial Section of this document.

3. Expenditures

For a review of the major expenditures and the projection process, see detailed “Expenditure Assumptions” presented in the Financial Section of this document.

4. Budget Transfers

Administrative Policy and state statutes govern budget transfers. The Board of Education approves all budget transfers through the budget process or by resolution during the fiscal year.

Operating subsidies to other funds must be approved by the Board of Education.

Budget Publication and Adoption

The Board of Education of the district must adopt a budget and an appropriation resolution for each fund that presents a complete financial plan for the ensuing fiscal year. In accordance with state budget law, the budget shall include actual revenues and expenditures/expenses in detail for the last completed fiscal year, revenues and expenditures/expenses anticipated/budgeted or both for the current fiscal year and proposed revenues and expenditures/expenses for the ensuing fiscal year.

A. Notice of Budget Publication

1. Proposed Budget/Notice to Public

The proposed budget shall be submitted to the Board of Education at least 30 days prior to the beginning of the fiscal year. Per statute, “Within 10 days after the submission of the proposed budget, The Board of Education must publish a notice stating that the proposed budget is on file at the principal administrative offices of the district; that the

2014 – 2015 BUDGET Significant Budget Development Statutes, Policies, and Guidelines


proposed budget is available for inspection during reasonable business hours; that any person paying school taxes in the district may file or register an objection thereto at any time prior to its adoption; and that the Board of Education of the district will consider adoption of the proposed budget for the ensuing fiscal year on the date, time and place specified in the notice.”

2. Budget Consideration by the public

State law requires that a public meeting be held at which the proposed budget will be considered by the Board of Education.

B. Budget Adoption

The Board of Education must adopt a budget for each fiscal year prior to the beginning of the fiscal year (July1).

After adoption, the Board of Education may modify the budget prior to January 31 of the current fiscal year. Changes to the budget after that date may be authorized only under supplemental budget provisions.

C. Appropriation Resolution

The Board of Education must adopt a budget and an appropriation resolution for each fiscal year prior to the beginning of such year. The appropriation resolution must specify the amount of money appropriated to each fund. The amounts appropriated to a fund must not exceed the amount as specified in the adopted budget.

The Board of Education may not expend any monies in excess of the amount appropriated by resolution for a particular fund in the absence of a supplemental budget resolution.

D. Budget Filing

A copy of the budget is to remain on file at the main administrative office of the district throughout the year and must be open for public inspection during business hours. It must also be posted online on the District website.

E. Failure to Adopt a Budget

If either the budget or appropriation resolution is not properly adopted as required by statute, then 90% of the last duly adopted budget and appropriation resolution shall be deemed to be budgeted and appropriated.

F. Financial Transparency

Certain financial information must be posted online as prescribed by Article 44, Title 22 of the Colorado Revised Statutes.

Budget Development Calendar 2014-2015 BUDGET


TABOR Constitutional Amendment

In November 1992, a majority of voters in the State of Colorado passed a constitutional amendment commonly referred to as Amendment 1 or the Taxpayers Bill of Rights (TABOR). The intent of the amendment is to restrict the growth of government in the state. Property tax revenue and total spending are restricted to increase by no more than the rate of population growth plus the Denver/Boulder Consumer Price Index for the calendar year immediately preceding the fiscal year.

Budget Development Calendar

Mid-December Mill Levy Certification of property tax collection for the calendar year

January 31 Deadline for amending final adjusted budget

February Denver-Boulder-Greeley CPI announced

April-May Salary negotiations with Uncompahgre Valley Education Association (UVEA)

Early May Schools informed of the per-pupil allocation

May 31 Proposed Budget transmitted to Board of Education

June 1-7 Publish Notice to the Public that the Proposed Budget is available for review per C.R.S. 22-44-109(1)

Mid-June Public hearing to review budget

June 30 Budget Adoption by Board of Education

Late August Initial district-wide assessed value received from County Assessor

October Preparation of Certified Enrollment, review of adopted budget based on student counts

November 3 Transmittal of Certified Pupil Count to CDE

2014 – 2015 BUDGET Budget Development Calendar



FINANCIAL SECTION 2014 – 2015 BUDGET

Montrose County School District RE-1J | FINANCIAL SECTION 31

FINANCIAL SECTION

2014 – 2015 BUDGET Budget Revenue Assumptions

32 FINANCIAL SECTION | Montrose County School District RE-1J

Budget Revenue Assumptions

Colorado’s Public School Finance Act of 1994 determines the per-pupil funding for the District. For the 2014-2015 year, total per-pupil funding will increase 2.8 % from $7,797 to $8,012. The State Budget Stabilization Negative Factor brings the per-pupil funding to $6,961. The budget reflects a decrease of 83 student FTE (full-time equivalent); therefore, General Fund per-pupil revenue is based on the $8,012 times 5,871 FTE students or $47 million. Including the Negative Factor results in net per-pupil revenue of $40.8 million. Approximately 25% of this will be received from school district property taxes, 3% from specific ownership tax, and 73% from state equalization funding. This year the ratio between local and state increased from 65% to 73% for the state portion, due to declining property valuations. Additional revenue is received for state categorical programs and from federal sources.

The state established a State Budget Stabilization Negative Factor in the amount of 13.16% of total program funding ($6,188,600) which in the budget has been included in State Equalization and as a separate line item as an offset to revenue.

Budget Expenditure Assumptions

Approximately 87% of General Fund expenditures are spent on salaries and benefits. The 2014-2015 budget for salaries and benefits reflects increases of 0.9% in PERA; 5% increase in Employee Medical; steps; and educational credits for lanes and clock hours. $.25 per hour was added to all classified positions, and $500 per year for each licensed/certified position. Positions that were vacated due to attrition will be carefully reviewed and refilled as needed.

Six separate amounts are acknowledged and set aside as committed and restricted as shown on the separate Fund Balance and Reserves Schedule (pg 20). While required to be budgeted, it is not intended that these six amounts will be expended: (1) Fund Balance in Non-Spendable form; (2) 3% for the TABOR emergency reserve (3) An amount for irrevocably-committed retirement bonuses; (4) Board reserve; (5) Board commitment for the third year of expenditures on the UVEA negotiated Contract; and (6) Assigned for the School Based Health Center.

Budget Expenditure Assumptions 2014-2015 BUDGET



2014 – 2015 BUDGET Summary Budget Schedule – All Funds


Summary Budget Schedule – All Funds

SUMMARY SCHEDULE OF REVENUES,

FUND

Source

Code

General

Fund

Insurance

Reserve

Nutritional

Services

Special

Grants

Activity/

Athletic

FUND NUMBER 10 18 21 22 23

BEGINNING FUND BALANCE 7,107,023$ 1,132,068$ 947,898$ -$ 942,477$

REVENUE

Local 1000 11,683,000 6,000 - 286,555 1,600,000

Intermediate 2000 154,000 - - - -

State 3000 31,169,400 - 39,950 462,000 -

Federal 4000 248,500 - 1,649,500 4,941,905 -

Interest 1000 4,000 300 - - -

Transfer In 5000 - - - - -

Finance Proceeds 1000 - - - - -

Other 1000 - - - - -

Sales & Revenues 1000 - - 302,050 - -

Total Revenue 43,258,900 6,300 1,991,500 5,690,460 1,600,000

Gross Funds Available 50,365,923 1,138,368 2,939,398 5,690,460 2,542,477

TRANSFER-OTHER FUNDS 5200 (1,797,100) 30,400 - - -

CHARTER SCHOOLS ALLOC

Passage Charter School 5600 (145,000) - - - -

Vista Charter School 5600 (1,097,200) - - - -

NET FUNDS AVAILABLE 47,326,623 1,168,768 2,939,398 5,690,460 2,542,477

Program

EXPENDITURES Code

Instruction 0001-2099 26,078,860 - - 1,832,520 1,600,000

Student Support 2100-2199 2,811,570 - - 468,800 -

Instructional Support 2200-2299 1,393,005 - - 1,715,740 -

General Administration 2300-2399 759,800 - - 1,100 -

School Administration 2400-2499 2,692,465 - - - -

Business 2500-2599 787,735 - - - -

Operations & Maintenance 2600-2699 4,492,570 - - 15,000 -

Student Transportation 2700-2799 1,788,100 - - - -

Central supporting 2800-2899 746,990 88,900 - - -

Food Services 3100-3199 - - - - -

Community Svc/Facilities 3300-3399 - - - 572,900 -

Other 2900 & 3400 77,250 - - - -

State Fiscal Emergency Reserve 2600-2699 - - - - -

Capital Outlay 4000-4999 - - - 1,084,400 -

Insurance Premiums 2600-2699 - 648,600 - - -

Principal and Interest 2600-2699 - - - -

Claims 2600-2699 - 28,000 - - -

Food Service Operations 2600-2699 - - 1,984,650 - -

Scholarships 2600-2699 - - - - -

Total Expenditures 41,628,345 765,500 1,984,650 5,690,460 1,600,000

Change in Fund Balance (1,408,745) (728,800) 6,850 - -

Nonspendable Fund Balance 92,000 - - - -

Restricted: TABOR Reserve 1,290,000 - - - -

Board Committed: Retirement Bonus 275,000 - - - -

Board Committed: Contingency Reserve 3,000,000 - - - -

Board Committed: Negotiated 2015-16 800,000 - - - -

Assigned for School Based Health Centers 190,000 - - - -

Total Appropriations 47,275,345 765,500 1,984,650 5,690,460 1,600,000

Unappropriated (Unassigned) Fund Balance 51,278 403,268 954,748 - 942,477

ENDING FUND BALANCE 5,698,278$ 403,268$ 954,748$ -$ 942,477$

Summary Budget Schedule – All Funds 2014-2015 BUDGET


EXPENDITURES,AND FUND BALANCE -- ALL FUNDS Fee In

Lieu

Bond

Fund

Lease/QZAB

Fund

Building

Fund

Capital

Projects

Employee

Medical

Scholarship

Fund TOTAL

26 31 39 41 43 65 79

105,108$ 788,003$ 2,663,486$ 936,631$ 1,501,586$ 771,519$ 1,128,254$ 18,024,053$

- 782,000 - - - - - 14,357,555

25,000 - - - - - - 179,000

- - - - - 31,671,350

- - - - - - - 6,839,905

100 - - 300 800 1,300 20,000 26,800

- - - - 20,000 6,071,500 - 6,091,500

- - - - - - - -

- - - - - - 35,000 35,000

- - - - - - - 302,050

25,100 782,000 300 20,800 6,072,800 55,000 59,503,160

130,208 1,570,003 2,663,486 936,931 1,522,386 6,844,319 1,183,254 77,527,213

- - 400,000 200,000 1,166,700 - - -

- - - - - - - (145,000)

- - - - - - - (1,097,200)

130,208 1,570,003 3,063,486 1,136,931 2,689,086 6,844,319 1,183,254 76,285,013

- - - - 819,000 - - 30,330,380

- - - - - - - 3,280,370

- - - - - - - 3,108,745

- - - - - - - 760,900

- - - - - - - 2,692,465

- - - - - - - 787,735

- - - - 5,000 - - 4,512,570

- - - - 10,000 - - 1,798,100

- - - - - - - 835,890

- - - - - - - -

- - - - - - - 572,900

- - - - - - - 77,250

- - - - - - - -

- - - - 353,500 - - 1,437,900

- - - - - 600,000 - 1,248,600

- 782,000 400,000 - - - - 1,182,000

- - - - - 5,356,200 - 5,384,200

- - - - - - - 1,984,650

- - - - - - 55,000 55,000

- 782,000 400,000 - 1,187,500 5,956,200 55,000 60,049,655

25,100 - - 200,300 - 116,600 - (1,788,695)

- - - - - - - 92,000

- - - - - - - 1,290,000

- - - - - - - 275,000

- - - - - - - 3,000,000

- - - - - - - 800,000

- - - - - - - 190,000

- 782,000 400,000 - 1,187,500 5,956,200 55,000 65,696,655

130,208 788,003 2,663,486 1,136,931 1,501,586 888,119 1,128,254 10,588,358

130,208$ 788,003$ 2,663,486$ 1,136,931$ 1,501,586$ 888,119$ 1,128,254$ 16,235,358$

2014 – 2015 BUDGET Graphs


Graphs

Revenue Distribution Summary

GeneralFund, 72.70%

InsuranceReserve, 0.01%

SpecialGrants, 9.56%

Activity/Athletic, 2.69%

Fee InLieu, 0.04%

BondFund, 1.31%

Lease/QZABFund, 0.00%

BuildingFund, 0.00%

CapitalProjects, 0.03%

NutritionalServices, 3.35%

EmployeeMedical, 10.21%

ScholarshipFund, 0.09%

Revenue Distribution Summary -- All Funds

Expenditure Distribution Summary

GeneralFund, 69.32%

InsuranceReserve, 1.27%

SpecialGrants, 9.48%

Activity/Athletic, 2.66%

Fee InLieu, 0.00%

BondFund, 1.30%

Lease/QZABFund, 0.67%

BuildingFund, 0.00%

CapitalProjects, 1.98%

NutritionalServices, 3.31%

EmployeeMedical, 9.92%

ScholarshipFund, 0.09%

Expenditure Distribution Summary -- All Funds

Governmental Funds 2014-2015 BUDGET


Governmental Funds

General Fund (Fund 10) As the district’s major operating fund, the General Fund accounts for the ordinary operating expenditures financed by property taxes, state equalization payments, service charges, and other sources. The fund includes all resources and expenditures not legally or properly accounted for in other funds as directed by C.R.S 22- 45-103(1)(a). The General Fund balance is available to the district for any purpose provided it is expended or transferred according to Colorado Revised Statutes.

The General Fund operating budget contains almost 70% of the District’s total expenditures, and will therefore be shown in greater detail in this section.

Pupil Count Projections In recent years the total student population in the District has fluctuated between 6,100 and 6,500 students. These fluctuations were a product of economic expansion and contraction in the area. The western slope area of Colorado, including Montrose County, tends to lag behind the State and National economies. While the National economy bottomed out in 2009 during the recent recession, Montrose County experienced a slow slide that bottomed out in 2011-12. The local economy appears to have stabilized, but there are currently no reasons to expect another boom or a large influx of population. In fact, the Colorado State Demography Office projects an annual growth rate of 1%-2% for Montrose County through 2040. However, in the short term, the District foresees student counts dropping for the 2014-15 year, due to a particularly large graduating senior class in 2013-14. The District forecasts a flattening of the trend in future years.

It is necessary to note that the graph below represents the actual pupil count as of October 1st for the given year. For funding purposes, the state uses a complex averaging formula that covers the 5 prior years, so the “funded pupil count” is not necessarily the same as the actual count.

5,500

5,700

5,900

6,100

2006 2007 2008 2009 2010 2011 2012 2013EST.

2014EST.

2015EST.

2016

Count 5,672 5,856 6,010 6,011 5,971 5,859 5,768 5,804 5,748 5,740 5,745

Stu

de

nt

Co

un

t

MCSD October Student CountsFull Time Equivalents (FTE)

Per Pupil Allocations Total Program Funding is the revenue available to the district as determined by the School Finance Act of 1994 (as amended for 2014-15) and accounts for approximately 95% of the district’s General Fund Revenue. Each year since passage of the Act, the Colorado Legislature has modified the formula in order to provide funding for public education in the state. Amendment 23, approved by voters statewide in November 2000, requires an annual inflationary increase to the statewide base per pupil amount. For

2014 – 2015 BUDGET Governmental Funds


the 2014-15 budget year the base will be increased by the 2013 Denver-Boulder-Greeley CPI, which was 2.8%, resulting in an increase to the base per pupil amount from $5,954.28 to $6,121, for a change of $167 for FY 2014-15.

Complementary to the state-wide base amount, the Act includes several other multiplying factors that are used to determine the district’s total per pupil funding level before and after at-risk funding. Several years of budget shortfall of revenue forced the state to modify the School Finance Act for the fiscal years 2010-11 through 2013-14. This modification was termed “The Negative Factor” and set the statewide funding level for Colorado school districts below FY2009-2010 funding, which resulted in a 15.5% reduction in revenue compared to the unadjusted School Finance Act funding level. The State experienced a budget surplus during calendar year 2013, and the Negative Factor has been reduced for the 2014-15 school year to 13.2%.

Montrose County School District receives funding in excess of the State’s base per-pupil amount, based on a formula that considers district size, local cost factors, and the percentage of students considered to be “at risk” (i.e. low-income, broken homes, etc.). The district’s adopted budget is based upon the following school finance act factors:

State Averages

Funded Pupil Count 5,748.0 4,687

Base Per Pupil Funding 6,121.00$ 6,121.00$

Cost of Living Factor 1.222 1.166

District Size Factor 1.030 1.423

Personnel Cost Factor 0.881 0.838

Non-Personnel Cost Factor 0.119 0.162

At-Risk Funded Pupil Count 2,880.0 640.4

State Budget Negative Factor -13.2% -13.2%

Anticipated Per Pupil Amount 6,960.63$ 8,963.90$

Anticipated Statutory Formula

Per-Pupil Funding Factors (per CDE)

After the State Legislature has established the funding level per pupil, which usually is not completed until near the end of the session in early May, the amount is multiplied by the projected October funded pupil count to estimate the district’s total program funding. Total program funding will be adjusted by the Colorado Department of Education in December to reflect the actual pupil count; “at-risk” funding based upon actual free lunch and ELL (English Language Learner) counts; the district’s actual assessed valuation; and the actual specific ownership tax collected during the previous fiscal year. The sum of FY2013-14 state aid, local property tax collections estimated at 100%, and specific ownership taxes collected during the fiscal year comprise total program funding projected in the budget.

Full Time Equivalent Employees by Program Montrose County School District hires and assigns workers based on current and anticipated needs at each school site. The following table shows the numbers and types of employees by program across the District that are budgeted for FY2014-15.



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TOTALS

Accountants 2.0 2.0

Accounting/Payroll 3.0 3.0

Administrative 6.0 6.0

Assistant Principals/Dean of Students 5.5 5.5

Athletic Directors -

Audiologists 1.0 1.0

Chief Financial Officer 1.0 1.0

Counselors 13.0 13.0

Custodians 47.8 47.8

Deputy Superintendent 1.0 1.0

Directors 2.0 2.0

Groundskeepers 1.0 1.0

HVAC, Electrical, & Other Maintenance 3.0 9.0 12.0

IT Director 1.0 1.0

Librarians 2.0 2.0

Media Specialists 10.0 10.0

Nurse/Health Techs 11.0 11.0

Principals 12.0 12.0

Psychologists 4.1 4.1

Secretary/Clerical 3.0 3.0 23.0 1.0 30.0

Social Work/Therapists 1.0 1.0

Special Projects/Communication 1.0 1.0

Substitute Callers - -

Superintendent 1.0 1.0

Supervisors 1.0 1.0

Teacher Coaches 0.7 0.7

Teachers 338.5 338.5

Teaching Assistants 73.0 73.0

Technology 4.0 4.0

Warehouse 2.0 2.0

PROGRAM TOTALS 411.5 39.1 17.7 6.0 40.5 8.0 59.8 - 5.0 587.6

GRAPHS –

Fund Revenue by Source

State Sources, 72.1%

Property Taxes, 23.3%

Specific Ownership Taxes, 3.2%

Other Local Revenue,

0.4%Federal

Sources, 0.6%


General Fund Revenue Sources



Fund Expenditures by Program

Instruction, 62.6%



General Admin, 1.8%

School Admin, 6.5%Business, 1.9%


10.8%

Student Transportation,

4.3%

Central Services, 1.8%

Other, 0.2%

General Fund Expenditures by Program

Fund Expenditures by Object

Salaries, 65.5%

Benefits, 21.1%Purchased

Services, 8.1%Supplies, 4.2%


Other, 0.7%

General Fund Expenditures by Object



Summary of Revenues, Expenditures, and Fund Balance Restrictions

General Fund Summary of Revenues and ExpendituresSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15

Code Actual Actual Actual Adopted Projected Adopted

REVENUE

Property Taxes (incl. Delinq./Interest) 1000 12,810,946$ 11,712,199$ 11,484,898$ 11,022,500$ 9,945,600$ 10,099,700$

Specific Ownership Taxes 1000 1,253,688 1,229,809 1,244,035 1,186,200 1,365,100 1,405,800

Interest Earned 1000 1,804 3,798 (1,922) 4,000 10,000 4,000

Other Local Revenue 1000 376,622 435,839 376,458 254,000 203,100 177,500

Intermediate 2000 193,126 163,708 155,730 159,000 154,000 154,000

State Equalization 3000 25,146,640 26,296,982 25,731,324 33,991,200 35,221,900 35,751,000

State of Colorado Negative Factor 3010 (7,142,900) (7,145,000) (6,188,600)

State Categorical and Other 3000 1,613,043 1,596,899 1,584,527 1,594,600 1,747,800 1,607,000

Federal 4000 2,102,094 242,535 250,246 170,000 248,500 248,500

TOTAL REVENUE 43,497,963 41,681,769 40,825,296 41,238,600 41,751,000 43,258,900

Transfers to Other Funds 5000 (2,028,735) (2,474,700) (2,637,000) (2,266,400) (2,152,500) (1,797,100)

Capital Lease Revenue - - 3,343,543 - - -

Allocations to Charter Schools 5000 (1,344,407) (1,146,597) (1,190,841) (1,242,200) (1,272,800) (1,242,200)

AVAILABLE REVENUE 40,124,821 38,060,472 40,340,998 37,730,000 38,325,700 40,219,600

Program

EXPENDITURES Code

Instruction 0001-2099 23,801,030 21,725,013 23,756,736 25,118,500 24,981,100 26,078,860

Student Support 2100-2199 2,080,831 1,859,825 2,335,941 2,427,700 2,602,400 2,811,570

Instructional Support 2200-2299 1,410,082 1,414,504 1,326,330 1,274,100 1,302,200 1,393,005

General Administration 2300-2399 677,883 695,146 546,800 744,300 697,100 759,800

School Administration 2400-2499 2,473,469 2,429,661 2,357,126 2,539,300 2,602,000 2,692,465

Business 2500-2599 601,295 596,920 654,500 766,900 726,800 787,735

Operation and Maintenance 2600-2699 4,420,948 4,044,298 4,201,060 4,247,700 4,389,400 4,492,570

Student Transportation 2700-2799 1,710,595 1,694,728 1,682,483 1,794,400 1,690,900 1,788,100

Central Services 2800-2899 636,340 347,777 490,788 717,000 1,109,700 746,990

Other Expenditures 2900-4999 680,883 232,065 3,631,087 59,200 174,000 77,250

TOTAL EXPENDITURES 38,493,356 35,039,937 40,982,851 39,689,100 40,275,600 41,628,345

EXCESS (DEFICIT) OF REVENUE 1,631,465 3,020,535 (641,853) (1,959,100) (1,949,900) (1,408,745)

Fund Balance-Beginning of Year 5,046,776 6,678,241 9,698,776 9,056,923 9,056,923 7,107,023

Fund Balance-End of Year 6,678,241$ 9,698,776$ 9,056,923$ 7,097,823$ 7,107,023$ 5,698,278$

RESTRICTIONS ON FUND BALANCE

Nonspendable Fund Balance (106,366)$ (91,617)$ (96,721)$ (92,000)$ (92,000)$ (92,000)$

Restricted: TABOR Reserve (1,231,902) (1,168,284) (1,197,366) (1,389,100) (1,270,000) (1,290,000)

Board Committed: Retirement Bonus (535,740) (476,942) (274,616) (450,000) (275,000) (275,000)

Board Committed: Contingency Reserve - - (3,000,000) (3,000,000) (3,000,000) (3,000,000)

Board Committed: Negotiated Contract 2012-13 year - (1,256,900) - - - -

Board Committed:Negotiated Contract 2013-14 year - (1,256,900) (1,256,900) (310,700) - -

Board Committed:Negotiated Contract 2014-15 year - - (1,256,900) (1,256,900) (1,125,000) -

Board Committed:Negotiated Contract 2015-16 year - - - - (1,125,000) (800,000)

Assigned for School Based Health Centers - (186,800) (225,356) (190,000) (190,000) (190,000)

Ending Unassigned Fund Balance 4,804,233$ 5,261,333$ 1,749,064$ 409,123$ 30,023$ 51,278$



Fund Balances and Required Reserves As of June 30, 2014, the General Fund shows a projected fund balance of $7,107,023. Of this Fund Balance, the following are committed and or reserved:

1. Non-spendable Fund Balance: The portion of fund balance that is inventory and prepaid i.e. in a non-spendable form.

2. TABOR Reserve. Under Section 20, Article X of the Colorado Constitution, the District is required to reserve 3% of “…its fiscal-year spending excluding bonded debt service”. Interpretation of the TABOR Amendment varies, primarily with respect to whether it applies to all of the District’s funds or just the General Fund; and, as to whether the unpaid teachers’ salary accrual at the end of any given fiscal year may be used to show coverage of the reserve.

3. Board Committed: Retirement Bonus. The Board has committed $275,000 for unpaid, but “irrevocably committed” retirement bonuses.

4. Board Committed: Contingency Reserve. The Board has committed $3,000,000 as a contingency reserve, only to be spent upon Board approval. This reserve does not meet the precise requirements for a committed amount per the Governmental Accounting Standards Board (GASB), since it is not committed for a specific purpose. On the District’s financial statements, this amount is included with unassigned fund balance, but the District has chosen to show it as committed for budgeting purposes.

5. Board Committed: Negotiated Contract. The Board and the UVEA agreed through negotiations for the 2012-13 fiscal year to commit $1,256,900 of unassigned fund balance to fund steps, lanes, and clock hours for eligible employees. Since these are on-going expenses in the 2012-13 year, $1,125,000 was committed from fund balance for the 2014-15 and the 2015-16 fiscal years for a total of $2,250,000 for fiscal year end 2013-14. It is anticipated that during the 2014-2015 year, General Fund expenditures will exceed revenues and that the net fund balance will decrease by $1,408,745 to approximately $7,107,023.

See the following pages for detailed General Fund revenues and expenditures.



Revenue Detail

General Fund Revenue DetailSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15

Revenues Code Actual Actual Actual Adopted Projected Adopted

Local 1000

Property Taxes 12,728,397$ 11,593,996$ 11,444,835$ 10,922,500$ 9,896,000$ 10,050,100$

Specific Ownership 1,253,688 1,229,809 1,244,035 1,186,200 1,365,100 1,405,800

Penalty & Interest 82,549 118,203 40,063 100,000 49,600 49,600

Other 376,622 435,839 376,458 254,000 203,100 177,500

Total Local 14,441,256 13,377,847 13,105,391 12,462,700 11,513,800 11,683,000

Intermediate 2000

Mineral Leases/Forest Service 193,126 163,708 155,730 159,000 154,000 154,000

Total Intermediate 193,126 163,708 155,730 159,000 154,000 154,000

State 3000

Equalization 25,146,640 26,296,982 25,731,324 33,991,200 35,221,900 35,751,000

State of Colorado Negative Factor (7,142,900) (7,145,000) (6,188,600)

Vocational Education 145,244 122,422 146,671 145,200 104,200 104,200

Special Education 884,948 888,402 854,870 885,000 1,028,000 884,900

Transportation 378,031 393,879 403,823 360,400 392,200 392,200

English Language Prof. Act 104,405 93,092 80,644 104,400 122,300 122,300

Gifted/Talented & Other 59,460 58,397 58,063 59,600 59,600 59,600

Other 40,955 40,707 40,456 40,000 41,500 43,800

Total State 26,759,683 27,893,881 27,315,851 28,442,900 29,824,700 31,169,400

Federal 4000

ARRA Education Stabilization Fund 1,661,063 39,357 -

Medicaid 86,031 126,696 142,983 100,000 142,500 142,500

NJROTC 80,830 76,482 68,510 70,000 68,000 68,000

ARRA IDEA Maintenance Effort - - -

Other 274,170 - 38,753 38,000 38,000

Total Federal 2,102,094 242,535 250,246 170,000 248,500 248,500

Other Financing Sources

Capital Lease Revenue 3,343,543

Interest 1000 1,804 3,798 (1,922) 4,000 10,000 4,000

Total Other Financing Sources 1,804 3,798 3,341,621 4,000 10,000 4,000

Total Revenues 43,497,963$ 41,681,769$ 44,168,839$ 41,238,600$ 41,751,000$ 43,258,900$



Total Expenditures by Program and by Object

General Fund Expenditures by Program and ObjectCode 0001-0199 0200-0299 0300-0599 0600-0699 0700-0799 0800-0999 Per Student

Purchased Capital

OBJECT> Salaries Benefits Services Supplies Outlay Other Total 5748 /FTE

PROGRAM

Instruction 0001-2099 19,134,245$ 6,046,515$ 577,868$ 261,396$ 58,836$ -$ 26,078,860$ 4,537.03$

Student Support 2100-2199 1,845,510 586,140 163,734 13,646 2,500 200,040 2,811,570 489.14

Instructional Support 2200-2299 931,400 305,800 104,650 41,605 3,250 6,300 1,393,005 242.35

General Administration 2300-2399 472,400 126,600 114,900 23,050 990 21,860 759,800 132.19

School Administration 2400-2499 1,892,150 623,770 70,385 90,610 8,200 7,350 2,692,465 468.42

Business 2500-2599 470,330 150,805 105,000 13,100 47,000 1,500 787,735 137.05

Operations & Maintenance 2600-2699 2,197,840 826,130 379,300 1,073,900 15,000 400 4,492,570 781.59

Student Transportation 2700-2799 25,000 4,900 1,547,200 211,000 - - 1,788,100 311.08

Central Services 2800-2899 310,330 89,110 306,650 26,900 2,000 12,000 746,990 129.96

Other 2900-4999 - 20,250 11,600 5,800 500 39,100 77,250 13.44

Total Expenditures 27,279,205$ 8,780,020$ 3,381,287$ 1,761,007$ 138,276$ 288,550$ 41,628,345$ 7,242.23$



Detailed Expenditures by Program with Staffing

Instruction Program Expenditures

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 17,898,043$ 16,196,656$ 17,517,647$ 18,582,300$ 18,035,900$ 19,134,245$

Benefits 0200-0299 4,720,311 4,539,185 5,132,769 5,575,000 5,673,000 6,046,515

Purchased Services 0300-0599 544,047 555,931 552,765 600,600 702,400 577,868

Supplies 0600-0699 559,852 276,231 442,057 320,900 396,000 261,396

Capital Outlay 0700-0799 78,702 156,945 111,428 39,700 173,800 58,836

Other 0800-0999 75 65 70 - - -

Total 23,801,030$ 21,725,013$ 23,756,736$ 25,118,500$ 24,981,100$ 26,078,860$

Program Staffing FTEs

Teachers 338.5

Teaching Assistants 73

PROGRAM TOTAL 411.5

Student Support Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 1,574,946$ 1,358,929$ 1,694,134$ 1,713,600$ 1,829,500$ 1,845,510$

Benefits 0200-0299 395,775 362,043 476,949 528,200 585,000 586,140


Supplies 0600-0699 16,617 11,140 12,797 9,300 18,000 13,646

Capital Outlay 0700-0799 - - - - 2,500

Other 0800-0999 25 65 100 100 200,040

Total 2,080,831$ 1,859,825$ 2,335,941$ 2,427,700$ 2,602,400$ 2,811,570$


Administrative 6.0

Audiologists 1.0

Motor Svcs Provider 3.0

Counselors 13.0

Nurse/Health Techs 11.0

Psychologists 4.1

Social Work/Therapists 1.0

PROGRAM TOTAL 39.1



Instructional Support Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 972,627$ 1,060,544$ 879,382$ 847,300$ 854,200$ 931,400$

Benefits 0200-0299 246,877 224,756 244,707 270,900 255,100 305,800


Supplies 0600-0699 64,354 47,264 55,267 51,400 58,200 41,605

Capital Outlay 0700-0799 3,942 462 4,506 800 4,500 3,250

Other 0800-0999 85 2,292 10,557 1,800 7,300 6,300

Total 1,410,082$ 1,414,504$ 1,326,330$ 1,274,100$ 1,302,200$ 1,393,005$


Athletic Directors -

Directors 2.0

Librarians 2.0

Media Specialists 10.0

Secretary/Clerical 3.0

Teacher Coaches 0.7

PROGRAM TOTAL 17.7

General Administration Support Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 437,125$ 449,152$ 355,627$ 467,700$ 453,800$ 472,400$

Benefits 0200-0299 83,698 85,880 81,527 116,300 108,000 126,600


Supplies 0600-0699 20,939 15,285 19,093 32,800 24,600 23,050

Capital Outlay 0700-0799 1,908 - 1,280 - 7,200 990

Other 0800-0999 5,280 28,362 18,310 9,500 19,300 21,860

Total 677,883$ 695,146$ 546,800$ 744,300$ 697,100$ 759,800$


Deputy Superintendent 1.0


Special Projects/

Communication1.0

Superintendent 1.0

PROGRAM TOTAL 6.0



School Administration Support Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 1,897,336$ 1,833,452$ 1,726,478$ 1,855,500$ 1,878,300$ 1,892,150$

Benefits 0200-0299 445,661 452,084 480,292 575,200 547,700 623,770


Supplies 0600-0699 58,734 61,966 91,936 51,100 99,600 90,610

Capital Outlay 0700-0799 18,261 6,513 10,355 11,700 7,900 8,200

Other 0800-0999 19,921 2,381 3,021 3,100 3,100 7,350

Total 2,473,469$ 2,429,661$ 2,357,126$ 2,539,300$ 2,602,000$ 2,692,465$


Assistant Principals/

Dean of Students5.5

Principals 12.0


PROGRAM TOTAL 40.5

Business Services Support Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 393,561$ 381,398$ 411,905$ 461,100$ 458,400$ 470,330$

Benefits 0200-0299 90,218 95,122 108,681 139,200 127,900 150,805


Supplies 0600-0699 13,622 12,495 18,208 18,500 14,900 13,100

Capital Outlay 0700-0799 6,008 18,300 9,456 49,000 12,200 47,000

Other 0800-0999 8,345 910 1,081 800 2,600 1,500

Total 601,295$ 596,920$ 654,500$ 766,900$ 726,800$ 787,735$


Accountants 2.0

Accounting/Payroll 3.0

Chief Financial Officer 1.0

Warehouse 2.0

PROGRAM TOTAL 8.0



Operations and Maintenance Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 2,026,517$ 1,877,975$ 1,873,539$ 1,913,100$ 2,001,800$ 2,197,840$

Benefits 0200-0299 576,292 545,017 613,517 721,500 768,400 826,130


Supplies 0600-0699 1,298,748 1,274,525 1,245,897 1,233,500 1,130,900 1,073,900

Capital Outlay 0700-0799 39,812 2,176 7,758 21,700 5,300 15,000

Other 0800-0999 2,345 406 61 100 500 400

Total 4,420,948$ 4,044,298$ 4,201,060$ 4,247,700$ 4,389,400$ 4,492,570$


Custodians 47.8

Groundskeepers 1.0

HVAC, Electrical, &

Other Maintenance9.0


Supervisors 1.0

PROGRAM TOTAL 59.8

Transportation Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 28,716$ 26,212$ 27,096$ 30,600$ 20,800$ 25,000$

Benefits 0200-0299 4,523 4,306 4,665 5,600 3,700 4,900

Purchased Services 0300-0599 1,464,979 1,470,611 1,450,909 1,533,200 1,459,700 1,547,200

Supplies 0600-0699 212,144 193,599 199,813 225,000 206,700 211,000

Capital Outlay 0700-0799 233 - - - - -

Other 0800-0999 - - - - - -

Total 1,710,595$ 1,694,728$ 1,682,483$ 1,794,400$ 1,690,900$ 1,788,100$


No personnel are directly assigned to this program.



Central Services Program

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 277,434$ 164,723$ 210,714$ 286,100$ 297,400$ 310,330$

Benefits 0200-0299 193,039 46,923 62,770 90,200 76,300 89,110


Supplies 0600-0699 19,597 7,787 8,583 13,400 26,300 26,900

Capital Outlay 0700-0799 12,078 1,016 1,853 2,400 553,900 2,000

Other 0800-0999 1,453 - 35 1,400 11,200 12,000

Total 636,340$ 347,777$ 490,788$ 717,000$ 1,109,700$ 746,990$


IT Director 1

Substitute Callers 0

Technology 4

PROGRAM TOTAL 5

Other Support Programs

2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


Salaries 0001-0199 21,502 8,331 17,003 10,800 9,000 -

Benefits 0200-0299 3,368 1,388 45,342 37,100 11,700 20,250


Supplies 0600-0699 4,296 3,458 4,439 3,300 5,400 5,800

Capital Outlay 0700-0799 642,964 89,798 3,517,030 - 64,900 500

Other 0800-0999 413 58,929 38,414 - 40,700 39,100

Total 680,883 232,065 3,631,087 59,200 174,000 77,250


No personnel are directly assigned to these programs.



Insurance Reserve Fund (Fund 18) The Insurance Reserve Fund is considered a sub-fund of the General Fund for financial reporting purposes. It is used to account for transactions related to workers compensation, property, auto, casualty, and liability insurance. Although it is shown as a part of the General Fund on the District’s financial statements, it is budgeted separately.

No events during FY2013-14 have occurred that would indicate any major changes in necessary expenditures from this fund.

GRAPHS –


Local Revenues, 16.3%

Interest, 0.8%

General Fund Allocation,

82.8%

Insurance Reserve Fund Revenues


General Administration,

11.6%

Insurance Premiums,

84.7%

Claims & Loss Control, 3.7%

Insurance Reserve Fund Expenditures



Revenues and Expenditures by Program

Insurance Reserve FundSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE 935,144$ 1,011,662$ 1,283,905$ 1,272,305$ 1,385,868$ 1,132,068$

REVENUE

Local 1000 - - - 6,000 - 6,000

County 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 2,582 961 618 300 500 300

Transfer In 5000 - - - - - -

Finance Proceeds 1000 - - - - - -

Sale of Assets 1000 - - - - - -

Other 1000 13,567 - 31,326 - 7,200 -

Subtotal Revenue 16,149 961 31,944 6,300 7,700 6,300

Gross Funds Available 951,293 1,012,623 1,315,849 1,278,605 1,393,568 1,138,368

ALLOCATIONS 688,000 796,500 670,000 724,400 394,600 765,500

Transfer to Capital Reserve (735,100)

Net Funds Available 1,639,293 1,809,123 1,985,849 2,003,005 1,788,168 1,168,768

Program

EXPENDITURES Code

General Administration 2850 82,713 285,109 318,676 86,900 91,300 88,900

Insurance Premiums 2600 544,918 240,109 281,305 616,800 546,800 648,600

Claims & Loss Control 2600 - - - 27,000 18,000 28,000

Other 2900 & 3400 - - - - - -

Subtotal Expenditures 627,631 525,218 599,981 730,700 656,100 765,500

ENDING BALANCE 1,011,662$ 1,283,905$ 1,385,868$ 1,272,305$ 1,132,068$ 403,268$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure 103.32$ 87.12$ 104.02$ 125.87$ 113.04$ 133.18$

Insurance Reserve Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15

Actual Actual Actual Adopted Projected Adopted

Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ 68,395$ 68,400$ 67,000$

Employee Benefits 0200-0299 - - - 18,370 18,900 20,400

Purchased Services 0300-0599 - - - 596,800 571,900 633,000

Supplies 0600-0699 - - - 41,635 27,000 40,000

Property 0700-0799 - - - 4,900 2,500 4,500

Other Uses of Funds 0800-0999 - - - 600 600 600

Subtotal Expenditures -$ -$ -$ 730,700$ 689,300$ 765,500$



Nutritional Services Fund (Fund 21) The Nutritional Services Fund is used to account for all revenues and expenditures associated with providing breakfast and lunch for students and staff. Prior to this fiscal year, this fund was designated as an Enterprise Fund, and as such, was financed and operated in a manner similar to private business enterprise. The intent of the Board of Education in the past has been that the cost of providing food or services to the students on a continuing basis be financed or recovered primarily through meal charges. Despite the change in designation to a special revenue fund, the District anticipates that this fund will continue to be managed and budgeted in a similar manner.

GRAPHS –


State, 2.0%

Federal, 82.8%

Sales and Revenues,

15.2%

Nutritional Services Fund Revenues

Fund Expenditures by Program All expenditures in this Fund are recorded as Food Service Operations.


Salaries, 38.6%

Employee Benefits, 16.5%

Purchased Services, 3.9%

Supplies, 37.5%

Property, 3.5%

Nutritional Services Fund Expenditures by Object



Revenues and Expenditures by Program and Object

Nutritional Services FundSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE 466,099$ 656,013$ 872,105$ 753,605$ 925,598$ 947,898$

REVENUE

Local 1000 67,590 - - - - -

County 2000 - - - - - -

State 3000 32,958 53,437 22,868 79,200 39,300 39,950

Federal 4000 1,429,086 1,550,966 1,459,427 1,418,000 1,549,200 1,649,500

Interest 1000 - - - - - -

Sales and Revenues 1000 359,032 255,465 235,771 337,400 265,900 302,050

Other 1000 - - - - - -

Subtotal Revenue 1,888,666 1,859,868 1,718,066 1,834,600 1,854,400 1,991,500

Transfer-Other Funds - 30,528 (5,000) - (7,000) -

Gross Funds Available 2,354,765 2,546,409 2,585,171 2,588,205 2,772,998 2,939,398

Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -

Instructional Support 2200-2299 - - - - - -

General Administration 2300-2399 - - - - - -

School Administration 2400-2499 - - - - - -

Food Service Operations 3100 1,698,752 1,674,304 1,659,573 1,892,350 1,818,300 1,984,650

Other 2900 & 3400 - - - 6,000 6,800 -

Subtotal Expenditures 1,698,752 1,674,304 1,659,573 1,898,350 1,825,100 1,984,650

ENDING BALANCE 656,013$ 872,105$ 925,598$ 689,855$ 947,898$ 954,748$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748


Nutritional Services Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 727,662$ 680,368$ 663,462$ 709,000$ 697,100$ 766,100$

Employee Benefits 0200-0299 224,096 210,204 235,946 256,550 254,800 326,950


Supplies 0600-0699 601,347 662,913 658,558 787,300 692,100 744,050

Property 0700-0799 87,761 61,481 51,984 85,000 77,500 70,000

Other Uses of Funds 0800-0999 - - - - - -

Subtotal Expenditures 1,698,752$ 1,674,304$ 1,659,573$ 1,898,350$ 1,825,100$ 1,984,650$



Special Grants Fund (Fund 22) The Designated Purpose Grant Fund is used to account for the various federal, state and local grants awarded to the district to accomplish specific activities.

GRAPHS –


Local, 5.0%

State, 8.1%

Federal, 86.8%

Special Grant Funding by Source


Instruction, 32.3%



Community Services, 10.1%


Special Grant Expenditures by Program




Salaries, 47.5%

Employee Benefits, 10.4%


Supplies, 4.8%Property, 5.7%

Other Uses of Funds, 19.5%

Special Grant Expenditures by Object




Special Grants Fund - Revenues by Source, Expenditures by Program2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


BEGINNING BALANCE Source -$ -$ -$ -$ -$ -$

Code

REVENUE

Local 1000 593,690 586,783 532,177 1,025,000 302,300 286,555

Intermediate 2000 - - - - - -

State 3000 938,171 300,312 30,831 35,400 68,700 462,000

Federal 4000 5,302,378 4,205,134 3,873,341 4,047,200 4,137,100 4,941,905

Interest 1000 - - - - - -



Program

EXPENDITURES Code

Instruction 0001-2099 2,987,813 2,506,745 1,915,359 1,934,500 1,882,200 1,832,520

Student Support 2100-2199 823,239 653,026 487,777 666,500 435,400 468,800

Instructional Support 2200-2299 1,654,124 1,226,722 1,511,709 1,573,900 1,709,500 1,715,740

General Administration 2300-2399 - - - - 1,200 1,100

Business 2400-2499 - 4,703 - - - -

School Administration 2500-2599 - - 910 - 15,900 15,000

Operations & Maintenance 2600-2699 6,542 6,066 9,112 9,200 - -

Student Transportation 2700-2799 17,899 17,885 23,294 17,500 - -

Central Supporting 2800-2899 1,284 - - - -

Food Services 3100-3199 3,996 1,099 - 2,000 - -

Community Services 3300-3399 511,780 487,702 463,188 479,000 425,200 572,900

Capital Outlay 4000-4999 739,850 186,997 25,000 425,000 38,700 1,084,400

Other 2900 & 3400 88,996 - - - - -


ENDING BALANCE -$ -$ -$ -$ -$ -$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure $1,125.07 $844.62 $769.13 $879.86 $776.72 $989.99

Special Grants Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 3,527,943$ 2,973,835$ 2,725,506$ 2,849,855$ 2,863,400$ 2,702,930$

Employee Benefits 0200-0299 869,294 736,824 748,903 824,683 704,100 590,630


Supplies 0600-0699 450,634 343,810 215,303 250,751 274,300 275,700

Property 0700-0799 955,010 222,705 124,263 59,724 113,800 323,900

Other Uses of Funds 0800-0999 106,115 15,129 5,409 895,775 11,500 1,107,000




Statement of Revenues/Expenditures by Grant

Special Grants Fund - Revenues and Expenditures by Grant2009-10 2011-12 2012-13 2013-14 2013-14 2014-15


Local 593,690$ 587,464$ 532,177$ 1,025,000$ 301,580$ 286,555$

State

3119-CDE BOCES Educ Priorities - - 910 1,000 15,870 15,000

3183-VCS Expulsion Intervention 199,237 125,919 - 4,300 - -

3189-CDE BEST Construction 655,307 117,135 - - - 217,500

3192-CDE Counselor Corp - - - - 22,540 79,900

3201-CDE School Awards Program - 10,008 - - - -

3206-Read Act - - - - - 121,000

3207-CDE Libraries Act Grant - - - - 3,110 3,000

3208-SS Sample Project - - - - 820 800

3908-Summer Middle School - - - 11,100 - -

3957-Rural Mental Health 52,013 - - - - -

3958-Olathe CHIPRA Family 31,614 22,249 16,921 12,000 550 500

3959-Colorado PDD - 25,000 - - - -

3961-CDPH SHCIP - - 13,000 7,000 25,510 24,300

Total State Funding 938,171 300,311 30,831 35,400 68,400 462,000

Federal

4010-Title I 1,173,360 1,354,485 1,225,392 1,194,300 1,219,400 1,276,820

4011-Migrant 13,961 34,140 20,160 19,000 7,500 7,100

4027-Idea Part B 1,025,977 882,058 897,340 890,000 1,004,050 1,739,840

4048-Carl Perkins 51,903 54,271 57,226 51,000 52,560 50,300

4173-IDEA Preschool 28,308 30,631 26,750 25,200 22,940 51,300

4186-Title IV 1,830 - - - - -

4318-Title II D 195,633 - - - - -

4365-Title III 125,394 85,248 68,461 62,000 70,660 73,200

4367- Title II 268,766 238,320 216,672 228,000 283,730 386,200

4389-ARRA Title I A 467,390 2,292 - - - -

4391-ARRA Idea Part B 412,043 - - - - -

4392-ARRA Idea Preschool 17,230 - - - - -

4413-Race to the Top - 75,000 - 75,000 66,590 62,200

5002- ABE 114,559 115,209 113,859 105,600 104,370 13,300

5010- Title I School Improve 7,618 98,811 - - - -

5126-SWAP 175,588 115,978 57,283 156,000 55,720 51,700

5287-21st Century Learning 409,865 388,215 335,190 350,000 329,030 308,400

6002-ABE El Civics 15,699 15,699 16,897 14,100 14,790 -

6323-IDEA School Improve 123 - - - 300 300

7186-School Safety - 11,500 - - - -

7205-Safe Routes to School - - - - - 27,600

7358-Title VI Part B - - 73,224 98,382 122,680 115,100

7365-Title III Set-Aside - - 8,418 7,360 7,000

7938-School Based Health 74,194 60,000 56,154 53,200 120,790 113,100

8600-Head Start 712,715 717,302 700,317 708,000 633,600 637,445

8708-Head Start ARRA 10,222 - - - - -

9003-Medicaid NES SBHC - 976 8,416 9,000 22,050 21,000

Total Federal Funding 5,302,378 4,280,135 3,873,341 4,047,200 4,138,120 4,941,905



Student Activity Fund (Fund 23) The Student Activity Fund is used to account for student activities at each of the schools. Such activities are funded by student payments, activity gate fees, and fund-raising activities, which are all considered Local revenues. All expenses are for the Instruction Program.


Student Activity FundSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15



REVENUE

Local 1000 1,545,384 1,532,409 1,543,308 1,600,000 1,600,000 1,600,000

County 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 - - - - - -



Transfer-Other Funds 5200 - - 20,000 - - -


Program

EXPENDITURES Code

Instruction 0001-2099 1,391,191 1,438,283 1,596,738 1,600,000 1,600,000 1,600,000

Student Support 2100-2199 - - - - - -




Other 2900 & 3400 - - - - - -


ENDING BALANCE 881,781$ 975,907$ 942,477$ 991,991$ 942,477$ 942,477$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure $229.02 $238.56 $276.83 $275.62 $275.67 $278.36



Fee-in-Lieu Fund (Fund 26) The Fee in Lieu Fund is used to record revenues from new residential real estate development in City of Montrose, Town of Olathe, and eastern Montrose County, and is used to fund future capital projects.

No substantial development projects are currently being undertaken in the area, so no substantial revenues will be budgeted. Currently, no expenditures from this fund have been budgeted.

GRAPHS –



Interest, 0.4%

Fee-in-Lieu Fund Revenues




Fee-in-Lieu Fund - Revenues and Expenditures by ProgramSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE 703$ 34,663$ 58,868$ 83,968$ 84,008$ 105,108$

REVENUE

Local 1000 - - - - - -

Intermediate 2000 33,981 24,174 25,100 25,000 21,000 25,000

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 23 31 40 100 100 100

Subtotal Revenue 34,004 24,205 25,140 25,100 21,100 25,100

Gross Funds Available 34,707 58,868 84,008 109,068 105,108 130,208

Transfer-Other Funds - - - - - -

Net Funds Available 34,707 58,868 84,008 109,068 105,108 130,208

Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -




Business 2500-2599 44 - - - - -

Principal and Interest 2500-2599 - - - - - -

Other 2900 & 3400 - - - - - -

Capital Outlay 4000-4999 - - - - - -

Subtotal Expenditures 44 - - - - -

ENDING BALANCE 34,663$ 58,868$ 84,008$ 109,068$ 105,108$ 130,208$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure 0.01$ -$ -$ -$ -$ -$

Fee-in-Lieu Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$

Employee Benefits 0200-0299 - - - - - -

Purchased Services 0300-0599 44 - - - - -

Supplies 0600-0699 - - - - - -

Property 0700-0799 - - - - - -


Subtotal Expenditures 44$ -$ -$ -$ -$ -$



Debt Funds

Bond Redemption Fund (Fund 31) The district utilizes the Bond Redemption Fund, as specified in C.R.S. 22-45-103(b), to finance and account for the payment of principal and interest on all long-term bonded debt of the district. The District issued general obligation refunding bonds, Series 2011, with a par balance of $6,545,000 and a premium of $707,876. These bonds are dated September 29, 2011 and were issued to refund the callable portions of the general obligation bonds Series 2002 and Series 2003, which were used to fund construction of new school buildings and expansions to existing buildings. The bonds carry a variable interest rate ranging from 2.00% to 4.00% and mature on December 1, 2022. The District received an upgrade from “no underlying rating” for the 2002 and 2003 bonds, to an underlying rating of “Aa3” by Moody’s, which reflects the district’s sound financial management and strong property tax base. Principal and interest payments are made in December, and an interest-only payment is made in June.

Per the FY2012-13 financial statements, the District currently has the following bond issue amounts outstanding:

Balance Current

6/30/2014 Principal

General Obligation

Bonds, Series 2011 5,920,000$ 580,000$

Premium on Series 2011 545,654 58,990

Total GO Bonds 6,465,654$ 638,990$

The 1994 Colorado school finance legislation includes a limitation of school district bonded debt of 20% of assessed value. The following table and chart illustrate the District’s adherence to the legal debt limitation. As can be seen, the District is currently well under the legal debt limit, and there are no current plans that would push the District near or over that limit.

2009-10 2010-11 2011-12 2012-13 2013-14

District Assessed Value * 569,447,862$ 565,506,120$ 507,528,576$ 509,511,984$ 440,605,231$

20% of Assessed Value

(District's legal debt l imit)113,889,572 113,101,224 101,505,715 101,902,397 88,121,046

Balance of Bonded Debt 8,256,355$ 7,757,790$ 7,687,897$ 7,089,644$ 6,465,654$

* Source of Assessed Value: Montrose County Assessor

$-

$30

$60

$90

$120

2009-10 2010-11 2011-12 2012-13 2013-14

Mill

ion

s

Bonded Debt Limit - Legal to Actual

Legal Debt Limit Bonded Debt Balance



Revenues for this fund come from property tax amounts earmarked specifically for School District Bonded Debt. The budgets shown account for principal payments as well as applicable interest payments.

See the following page for the budget schedule.




Bond Redemption Fund - Revenues and Expenditures by ProgramSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15



REVENUE

Local 1000 848,508 7,605,037 776,594 784,000 784,000 782,000

Intermediate 2000 111 113 113 - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 255 6,586 2,829 - - -

Subtotal Revenue 848,874 7,611,736 779,536 784,000 784,000 782,000


Transfer Other Funds - - - - - -


Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -




Principal and Interest 5100 842,764 385,114 774,660 784,000 784,000 782,000

Bond Retire-Refinanced 5100 - 7,171,015 - - - -

Other 2900 & 3400 - - - - - -

Subtotal Expenditures 842,764 7,556,129 774,660 784,000 784,000 782,000

ENDING BALANCE 727,520$ 783,127$ 788,003$ 840,611$ 788,003$ 788,003$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure 138.74$ 1,253.30$ 134.30$ 135.06$ 135.08$ 136.05$

Bond Redemption Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$


Purchased Services 0300-0599 800 89,133 805 500 500 500

Supplies 0600-0699 - - - - - -

Property 0700-0799 - - - - - -

Other Uses of Funds 0800-0999 841,964 7,466,996 773,855 783,500 783,500 781,500

Subtotal Expenditures 842,764$ 7,556,129$ 774,660$ 784,000$ 784,000$ 782,000$



Capital Lease / QZAB Fund (Fund 39) The Capital Lease and QZAB Fund is utilized to finance and account for the payment of principal and interest on long-term leases and Qualified Zone Academy Bonds (QZAB).

On March 28, 2002, the District entered into a ground lease agreement with First Union National Bank (Bank) whereby the Bank will lease certain District property for a single up-front payment of $3,474,600. The District received $3,300,870, net of fees in the amount of $173,700. The funds have been used by the District to repair, remodel, improve and upgrade certain District facilities. The lease agreement has been designated as a “Qualified Zone Academy Bond” (QZAB) for purpose of Section 1397E of the Internal Revenue Code of 1986, as amended. The District is leasing the above property back from the Bank by making 14 annually appropriated payments of $199,935 into a sinking fund, which, together with interest, will pay the Bank the up-front payment of $3,474,600 on March 28, 2016.

On December 11, 2012, the District entered into a lease-purchase agreement with All American Investment Group, LLC, with the purpose of performing energy-efficiency upgrades to electrical, mechanical, plumbing, and other selected systems in certain buildings and properties throughout the District. The lease agreement has been designated as a “Qualified Tax-Exempt Obligation” for the purpose and within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The total principal amount of the contract as of June 30, 2013 is $3,274,585, with a contract interest rate of 2.40% per annum. Payments which include both principal and interest will run through 2028.

Revenues for this fund consist of transfers in from the General Fund. The budgets shown account for principal payments as well as applicable interest payments.




Capital Lease / QZAB Fund - Revenues and Expenditures by ProgramSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE -$ 2,066,503$ 2,345,244$ 2,011,618$ 2,663,486$ 2,663,486$

REVENUE

Local 1000 - - - - - -

Intermediate 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 54,885 78,741 88,306 - - -

Subtotal Revenue 54,885 78,741 88,306 - - -

Gross Funds Available 54,885 2,145,244 2,433,550 2,011,618 2,663,486 2,663,486

Transfer Other Funds - 200,000 339,400 448,600 448,600 400,000

Transfer QZAB From Capital Reserve 2,011,618 - - - - -

- - - - - -


Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -




Principal and Interest 5100 - - 109,464 448,600 448,600 400,000

Other 2900 & 3400 - - - - -

Subtotal Expenditures - - 109,464 448,600 448,600 400,000

ENDING BALANCE 2,066,503$ 2,345,244$ 2,663,486$ 2,011,618$ 2,663,486$ 2,663,486$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure -$ -$ 18.98$ 77.28$ 77.29$ 69.59$

Capital Lease / QZAB Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$


Purchased Services 0300-0599 - - - - - -

Supplies 0600-0699 - - - - - -

Property 0700-0799 - - - - - -

Other Uses of Funds 0800-0999 - - 109,464 448,600 448,600 400,000

Subtotal Expenditures -$ -$ 109,464$ 448,600$ 448,600$ 400,000$



Capital Projects Funds

Building Fund (Fund 41) The Building Fund is used to account for the construction of large projects and large repairs to facilities. No such current projects are anticipated in the current year, and this fund is not currently budgeting any expenditures. A yearly Board-designated transfer from the General Fund is budgeted to allow for future construction projects. The source for these funds is Special Ownership taxes associated with the Bond Mill Levy.

Please see the following page for the schedule of revenues and expenditures for this fund.




Building Fund - Revenues and Expenditures by ProgramSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15



REVENUE

Local 1000 - - - - - -

County 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 184 232 314 200 300 300

Transfer In 5200 - - - - - -

Finance Proceeds 1000 - 657 - - - -

Subtotal Revenue 184 889 314 200 300 300

Gross Funds Available 134,716 336,017 536,331 736,417 736,631 936,931

Transfer-Other Funds 230,000 200,000 200,000 200,000 200,000 200,000

Net Funds Available 364,716 536,017 736,331 936,417 936,631 1,136,931

Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -




Principal and Interest 5100 - - - - - -

Other 2900 & 3400 - - - - - -

Capital Outlay 4000 29,588 - - - - -

Subtotal Expenditures 29,588 - - - - -

ENDING BALANCE 335,128$ 536,017$ 736,331$ 936,417$ 936,631$ 1,136,931$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure 4.87$ -$ -$ -$ -$ -$

Building Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$


Purchased Services 0300-0599 14 - - - - -

Supplies 0600-0699 - - - - - -

Property 0700-0799 29,574 - - - - -


Subtotal Expenditures 29,588$ -$ -$ -$ -$ -$



Capital Reserve Capital Projects Fund (Fund43) The Capital Reserve Capital Projects Fund was reclassified in 2011 from the Special Projects Fund, Capital Reserve. This fund is used to account for the purposes and limitations specified by Section 22-45-103(1)(c), C.R.S., including the acquisition of sites, buildings, equipment, and vehicles. The majority of revenues to this fund come from transfers from other funds.

GRAPHS –


Instruction, 69.0%


0.4%Transportation, 0.8%


Capital Reserve Expenditures by Program



Supplies, 15.2%

Property, 57.3%

Capital Reserve Expenditures by Object




Capital Reserve Capital Projects Fund Revenues and Expenditures by Program2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE Source 2,776,476$ 1,532,513$ 2,524,006$ 1,849,706$ 2,773,486$ 1,501,586$

Code

REVENUE

Local (Donations) 1000 - - - - - -

County 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 1,418 1,049 1,268 800 800 800

Transfer In 5000 20,830 23,840 23,070 20,000 20,000 20,000

Finance Proceeds 1000 - - - - - -

Sale of Assets 1000 - - 960 - - -

Other 1000 - - 57,170 - - -



ALLOCATIONS 1,110,800 1,278,200 1,112,600 893,400 893,400 431,600

Transfer QZAB To New Fund (2,011,618) - - - - -

Tranfer from Insurance Reserve - - - - - 735,100


Program

EXPENDITURES Code

Instruction 0001-2099 - 78,233 397,513 82,000 676,300 819,000

Student Support 2100-2199 - - - - - -

Instructional Support 2200-2299 - - 153,443 268,400 211,500

General Administration 2300-2399 - - 295 - - -


Business 2500-2599 - - 16,246 84,506 - -

Operations & Maintenance 2600-2699 - - 4,304 80,200 9,800 5,000

Transportation 2700-2799 - - 61,698 45,000 53,500 10,000

Other 2900 & 3400 - - -

Capital Outlay 4000-4999 365,393 233,363 312,089 1,458,004 1,235,000 353,500

Debt Service 5100 - - - - - -

Other 2900 & 3400 - - - - - -

Subtotal Expenditures 365,393 311,596 945,588 2,018,110 2,186,100 1,187,500

Designated Fund Balance (297,242) 2,524,006 2,773,486 745,796 1,501,586 1,501,586

QZAB Sinking Fund 1,829,755 - - - -

ENDING BALANCE 1,532,513$ 2,524,006$ 2,773,486$ 745,796$ 1,501,586$ 1,501,586$

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748


Capital Reserve Capital Projects Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$



Supplies 0600-0699 - - 234,895 186,800 347,400 181,000

Property 0700-0799 307,752 310,596 552,364 1,460,110 980,800 680,500


Subtotal Expenditures 365,393$ 311,596$ 945,588$ 2,018,110$ 2,186,100$ 1,187,500$

2014 – 2015 BUDGET Proprietary Fund


Proprietary Fund

Employee Medical Internal Service Fund (Fund 65) Internal Service Funds are used to account for the financing, on a cost-reimbursement basis, of goods and services provided by one fund to other funds within the same government. The Employee Medical Fund is used to account for all revenues and expenses related to the District’s self funded medical-dental-vision insurance plan.

Fund Revenue by Source Over 99% of the Fund’s revenues are a result of transfers in from other funds, which consist of District contributions (approximately 60%) and employee contributions (approximately 40%). A very small amount of income arises from interest income.

GRAPHS –


Premiums & Admin, 10.1%

Claims, 89.9%

Employee Medical Expendituresby Program

Proprietary Fund 2014-2015 BUDGET



Employee Medical Fund Revenues and Expenditures by ProgramSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE 2,281,870$ 1,486,827$ 1,635,742$ 219,142$ 373,219$ 771,519$

REVENUE

Local 1000 - - - - - -

County 2000 - - - - - -

State 3000 - - - - - -

Federal 4000 - - - - - -

Interest 1000 40,328 11,125 4,377 4,000 1,300 1,300

Other 1000


Transfer-Other Funds 5200 4,824,280 4,620,266 5,291,912 6,248,300 5,782,400 6,071,500


Program

EXPENDITURES Code

Instruction 0001-2099 - - - - - -

Student Support 2100-2199 - - - - - -




Premiums & Admin 2835 566,339 517,402 472,904 602,300 570,000 600,000

Claims 2835 5,093,312 3,965,074 6,085,908 5,650,000 4,815,400 5,356,200

Services - - - - - -

Other - - - - - -


ENDING BALANCE 1,486,827$ 1,635,742$ 373,219$ 219,142$ 771,519$ 888,119$

Employee Medical Fund - Expenditures by Object2010-11 2011-12 2012-13 2013-2014 2013-2014 2014-15


Object

EXPENDITURES Code

Salaries 0100-0199 -$ -$ -$ -$ -$ -$


Purchased Services 0300-0599 5,659,651 4,482,476 6,558,812 6,252,300 5,385,400 5,956,200

Supplies 0600-0699 - - - - - -

Property 0700-0799 - - - - - -



2014 – 2015 BUDGET Fiduciary Funds


Fiduciary Funds

Scholarship Trust Fund (Fund 79) Expendable Trust and Agency Funds are used to account for assets held by the government as an agent for individuals, private organizations, and/or other funds. The district uses the Scholarship Trust Fund, which accounts for assets held by the District in a trustee capacity to provide higher education scholarships for students. Revenues consist of donations and investment interest, while expenditures pay scholarships to colleges and universities awarded to former District students who maintain the requirements of each scholarship.

GRAPHS –


Interest, 36.4%

Donations, 63.6%

Scholarship Trust Fund Revenues

Fiduciary Funds 2014-2015 BUDGET



Scholarship Trust FundSource 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15


BEGINNING BALANCE 1,069,899 1,109,394 1,123,841 1,128,254 1,128,254 1,128,254

REVENUE

Interest 1000 19,516 29,809 25,898 20,000 20,000 20,000

Other 1000 74,421 28,616 12,436 50,000 35,000 35,000



Program

EXPENDITURES Code

Scholarships 0050 53,730 43,146 32,510 70,000 54,000 54,000

General Administration 2600 712 832 1,411 1,000 1,000

Subtotal Expenditures 54,442 43,978 33,921 70,000 55,000 55,000

ENDING BALANCE 1,109,394 1,123,841 1,128,254 1,128,254 1,128,254 1,128,254

Pupil FTE 6,075 6,029 5,768 5,805 5,804 5,748

Per Pupil Expenditure $8.96 $7.29 $5.88 $12.06 $9.48 $9.57

2014 – 2015 BUDGET Charter School Component Unit Budgets


Charter School Component Unit Budgets

Passage Charter School INCOME

Per Pupil Revenue (based on 10 students)

Per Pupil Operating ($6,959) 69,590.00$

Capital & Insurance Funds

Title Funding

Title I (Instructional ) 13,740.00$

Title I (Materials & Supplies) 500.00$

Title II (A) 200.00$

PCS Child Care Center Income 42,000.00$

Food Program 4,200.00$

Grants Carried Over From 2014 19,000.00$

Grants-New for 2014-15 60,500.00$

Charter School Capital Construction Money 1,700.00$

Donations 15,000.00$

Interest earned -$

Reimbursed Expenses 500.00$

PCS Reserves 49,903.00$

TOTAL INCOME 276,833.00$

EXPENSES: Federal & State Programs

Title Funding

Title I (Instructional ) 13,740.00$

Title I (Materials & Supplies) 500.00$

Title II (A) 200.00$

Food Program 4,200.00$

TOTAL Federal & State Programs 18,640.00$

EXPENSES: Operating

Accounting/Audit 5,500.00$

Administrative & Board Expense & Fundraising 1,500.00$

Capital & Insurance Funds :

Special Education $3200 Wk Comp/Liability

$2,000 5,200.00$

Charter School Capital Construction project 1,700.00$

Equipment Repair/Maintenance 3,200.00$

Grant Writing 4,700.00$

Cleaning/Bldg Maintainance (exterior) 1,300.00$

Reimbursed Expenses 500.00$

Supplies:Office/Household 1,205.00$

Technology 1,500.00$

Telephone-Internet 2,400.00$

Utilities 4,500.00$

Contingency Fund 10,000.00$

TOTAL: OPERATING 43,205.00$

EXPENSES: PERSONNEL

PCS Personnel-Wages (Amber & Erin 6 hr each) 136,705.00$

PCS Personnel-Benefits 56,583.00$

TOTAL PERSONNEL 193,288.00$

EXPENSES: PROGRAMS

Child Care Program 7,000.00$

Instruction Program 13,200.00$

Staff Development & Training 500.00$

Student Support & Development 1,000.00$

TOTAL: EXPENSES:PROGRAMS 21,700.00$

TOTAL EXPENSES 276,833.00$

Charter School Component Unit Budgets 2014-2015 BUDGET


Vista Charter School

EXPENDITURES Expenditure Category 14-15 Proposed Budget

Salaries: Teachers, W/S Teacher, Advocates, Counselors, Paras, Registrar,

Admin, Custodian, Subs, Tech; Summer curr; etc.

Salaries $650,701.50

Benefits: Teachers, W/S Tchr; Advocates, Counselors, Paras, Registrar,

Admin, Custodian; Subs; Summer curr; etc

Benefits $259,198.00

Maintenance and Repair Services Maint/Repair $17,200.00

Instructional;Adm;Board;Maint;Custodial : Supplies, Roger Lake sch Supplies $17,100.00

Purch Services- lawyers,archt, Board ed, technology, prof dvlpmt, tech filters,

security, etc.

Services $13,400.00

Staff, Adm, Board Travel Travel $2,700.00

Furniture and Equipment Furntr/Eqmt $5,000.00

Gas,Water,Sewage,Electricity, Trash, Phone, Internet, etc. Utilities $39,400.00

TABOR, Capital Reserve, Contingency for Emergency, Contingency;

Unemplmt; etc.

Contingency $31,300.00

Money to save for building repair/paymentBEST Cont. Buildg Acq $14,000.00

Personal or Sick leave cash outs at end of year or resignation, Unemplymnt Leave Reimb $1,000.00

Potential charges from District for services rendered- Insurance, Acctg, ESL

SpEd, Payroll, Adm, Audits, Wrkrs Comp; etc.

Chrges RE1J $36,000.00

Total Budget $1,086,999.50

INCOME

PPR revenue $995,081.23

Capital Construction $0.00

Roger Lake Scholarship $0.00

EIP $90,000.00

Cash Reserves $0.00

Total Income $1,085,081.23

Revenue over/ (under) total

budget

$81.73

2014 – 2015 BUDGET 2014-2015 Summary Budget (CDE-18)


2014-2015 Summary Budget (CDE-18)

See the following page for the CDE-18 Summary Budget. The CDE-18 is a State-mandated summary sheet that summarizes all fund activity and balances.

(The note above applies ONLY to printed versions of this report. If you are accessing this budget document online and you wish to review the CDE-18 Summary Budget, it is in the same web folder on the MCSD.org website.)

INFORMATIONAL SECTION 2014 – 2015 BUDGET

Montrose County School District RE-1J | INFORMATIONAL SECTION 77

INFORMATIONAL SECTION

2014 – 2015 BUDGET Demographic Information

78 INFORMATIONAL SECTION | Montrose County School District RE-1J

Demographic Information

Montrose County, Colorado is located in west-central Colorado. The county has a total area of approximately 2,243 square miles. Montrose County School District RE-1J is located in the eastern part of the county and contains the City of Montrose and the Town of Olathe, the two most populous urban areas in the county. This area is one of the agricultural hubs of the state, and also contains many acres of National Forests , Bureau of Land Management, and National Park lands. The School District also draws a small number of students from Ouray and Gunnison Counties; accordingly, the District receives property taxes from those counties to help subsidize the costs associated with those students.

Montrose County Population Trend by Age, 2001 – 2010

(Source: Population estimates from the Colorado State Demography Office)

0

5,000

10,000

15,000

20,000

25,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Montrose County Population by Age 2001 - 2010

0 - 3 4 - 18 19 - 65 66 and up

The population of the 4 – 18 age group (our “current” students) grew 9.8% from 2001 to 2010, while the

0 – 3 age group (our “future” students) grew by 14% for the same period. However, the age 66-and-up

group (retirees who will not be adding children to the school population) increased by 37%.

Population estimates from the U.S. Census Bureau that run through 2012 show a drop in the county’s

population from 2009 on, which varies somewhat from the State Demography Office’s estimates shown

above.

32,000

34,000

36,000

38,000

40,000

42,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Montrose County Population2003 - 2012

Property Tax Information 2014-2015 BUDGET


The U.S. Census Bureau shows a population drop of about 2% from 2009 to 2012, which would coincide with the economic recession in the area.

Property Tax Information

Due to the lagging economy and the associated weak housing market in Montrose County, the total assessed valuation of properties within the District has gone down substantially in the past several years. Mill levies (the rate at which property taxes are assessed, which is the current rate per $1,000 of assessed value) have stayed reasonably consistent, however, resulting in lower tax revenues for the District. The following chart shows the assessed valuation, the total property tax revenues, and the amount of property tax on an average $170,000 home that would go to the District. The source of data for the assessed valuation and total District tax revenues is the Montrose County Assessor’s Office.

2010-11 2011-12 2012-13 2013-14 2014-15

Assessed Valuation $585,037,274 $581,122,550 $522,126,459 $509,511,984 $440,605,231

Local Tax Revenue Collections $13,749,546 $13,654,637 $12,349,857 $11,954,170 $10,502,707

Tax on $170,000 home to RE-1J $318 $318 $320 $317 $323

$310

$312

$314

$316

$318

$320

$322

$324

$326

$328

$330

$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

Tax

on

$17

0,00

0 H

om

e

Ass

ess

ed

Val

uat

ion

Total Assessed District Valuation/Tax on $170,000 Home

The following table shows the total property tax rates (mill levy) for the past five years.

Tax Year 2010 2011 2012 2013 2014

General Property Mill Rate 22.047 22.037 22.151 21.967 22.098

Special Bond Levy Mill Rate 1.455 1.460 1.502 1.495 1.739

Total Mill Rate for District 23.502 23.497 23.653 23.462 23.837

The General Property Mill Rate is set by the State and fluctuates due to tax abatements. The Bond Mill Levy is based on revenue needed to make bond payments, and fluctuates based on assessed valuation.

2014 – 2015 BUDGET October 2013 Student Count by School


October 2013 Student Count by School

Personnel Resource Allocation History 2014-2015 BUDGET


Personnel Resource Allocation History

Personnel numbers and allocations have changed over the years due to funding restrictions and perceived needs in the various areas. The following table shows allocations for the past 4 years plus the proposed allocations for the coming fiscal year for the General Fund only. A more detailed table by program for the current fiscal year may be found in the discussion of the General Fund budget in the Financial Section.

Position

2010-11

Actual

2011-12

Actual

2012-13

Actual

2013-14

Actual

2014-15

Proposed

Accountants 1.0 1.0 2.0 2.0 2.0

Accounting/Payroll 3.5 3.0 3.0 3.0 3.0

Administrative 9.5 5.0 5.0 6.0 6.0

Assistant Principals/Dean of Students 7.0 5.0 5.0 5.0 5.5

Athletic Directors 2.0 2.0 2.0 2.0 -

Audiologists 1.0 1.0 1.0 1.0 1.0

Chief Financial Officer 1.0 1.0 1.0 1.0 1.0

Counselors 11.5 12.0 13.0 13.0 13.0

Custodians 46.4 49.0 49.4 46.8 47.8

Deputy Superintendent 1.0 1.0 1.0 1.0 1.0

Directors 2.0 2.0 3.0 3.0 2.0

Groundskeepers 1.0 1.0 1.0 3.0 1.0

HVAC, Electrical, & Other Maintenance 10.3 9.0 8.0 5.0 12.0

IT Director 1.0 1.0 1.0 1.0 1.0

Librarians 4.0 3.0 1.0 2.0 2.0

Media Specialists 11.0 9.0 9.0 9.0 10.0

Nurse/Health Techs 9.5 8.6 10.5 11.0 11.0

Principals 10.5 10.5 10.5 11.5 12.0

Psychologists 5.5 3.5 5.5 4.1 4.1

Secretary/Clerical 36.0 35.0 35.0 35.0 30.0

Social Work/Therapists 5.0 1.0 4.0 3.0 1.0

Special Projects/Communication 1.0 1.0 1.0 1.0 1.0

Substitute Callers 1.0 1.0 1.0 1.0 -

Superintendent 1.0 1.0 1.0 1.0 1.0

Supervisors 2.0 2.0 1.0 1.0 1.0

Teacher Coaches 1.0 1.0 1.0 1.0 0.7

Teachers 326.0 308.0 317.0 329.3 338.5

Teaching Assistants 50.5 54.5 62.0 73.0 73.0

Technology 3.0 2.0 2.0 3.5 4.0

Warehouse 2.0 2.0 2.0 2.0 2.0

TOTALS 567.2 536.1 558.9 581.2 587.6

2014 – 2015 BUDGET Bond Amortization Schedule


Bond Amortization Schedule

District issued general obligation refunding bonds, Series 2011, with a par balance of $6,545,000 and a premium of $707,876. These bonds are dated September 29, 2011 and were issued to refund the callable portions of the general obligation bonds Series 2002 and Series 2003, which were used to fund construction of new school buildings and expansions to existing buildings. The bonds carry a variable interest rate ranging from 2.00% to 4.00% and mature on December 1, 2022. The District received an upgrade from “no underlying rating” for the 2002 and 2003 bonds, to an underlying rating of “Aa3” by Moody’s, which reflects the district’s sound financial management and strong property tax base. Principal and interest payments are made semiannually in June and December. These bonds are the only bonds the District currently has outstanding.

The following table shows the yearly payments due from inception to full payment. The principal amount shown includes the par balance of the Series 2011 bonds plus the unpaid balance of the portion of the 2003 issues which were not refunded.

Year Principal Interest Payments

2012 560,000$ 176,996$ 736,996$

2013 545,000 228,855 773,855

2014 565,000 212,950 777,950

2015 580,000 201,500 781,500

2016 590,000 189,800 779,800

2017 610,000 174,750 784,750

2018 630,000 153,000 783,000

2019 645,000 127,500 772,500

2020 675,000 101,100 776,100

2021 705,000 73,500 778,500

2022 730,000 44,800 774,800

2023 755,000 15,100 770,100

TOTALS 7,590,000$ 1,699,851$ 9,289,851$

Teacher Salary Schedules 2014-2015 BUDGET


Teacher Salary Schedules

The District maintains numerous salary schedules, one for each type of employee. All schedules are available for review in the Financial Transparency area of the District’s website at www.mcsd.org. Since teachers are the most numerous and most visible of the District’s employees, the choice to show their salary schedule here was made.

Teacher salaries are determined by the number of years of teaching experience the person has AND the level of education. The schedule is structured to encourage continued educational growth. All salaries shown are a yearly salary amount. This salary schedule will be in effect for the 2014-15 fiscal year.

Year BA BA10 BA20 BA30 BA40

BA50/

Masters MA10 MA20 MA30 MA40 MA50 MA60

1 32,408$ 32,983$ 33,520$ 34,092$ 34,630$ 35,189$ 35,726$ 36,298$ 36,835$ 37,408$ 37,944$ 38,505$

2 33,520$ 34,092$ 34,630$ 35,189$ 35,726$ 36,298$ 36,835$ 37,408$ 37,944$ 38,505$ 39,044$ 39,616$

3 34,630$ 35,189$ 35,726$ 36,298$ 36,835$ 37,408$ 37,944$ 38,505$ 39,044$ 39,616$ 40,153$ 40,713$

4 35,726$ 36,298$ 36,835$ 37,408$ 37,944$ 38,505$ 39,044$ 39,616$ 40,153$ 40,713$ 41,262$ 41,823$

5 35,726$ 37,408$ 37,944$ 38,505$ 39,044$ 39,616$ 40,153$ 40,713$ 41,262$ 41,823$ 42,358$ 42,931$

6 35,726$ 38,505$ 39,044$ 39,616$ 40,153$ 40,713$ 41,262$ 41,823$ 42,358$ 42,931$ 43,469$ 44,040$

7 35,726$ 38,505$ 40,153$ 40,713$ 41,262$ 41,823$ 42,358$ 42,931$ 43,469$ 44,040$ 44,578$ 45,138$

8 35,726$ 38,505$ 41,262$ 41,823$ 42,358$ 42,931$ 43,469$ 44,040$ 44,578$ 45,138$ 45,686$ 46,248$

9 35,726$ 38,505$ 41,262$ 42,931$ 43,469$ 44,040$ 44,578$ 45,138$ 45,686$ 46,248$ 46,784$ 47,359$

10 35,726$ 38,505$ 41,262$ 44,040$ 44,578$ 45,138$ 45,686$ 46,248$ 46,784$ 47,359$ 47,918$ 48,456$

11 35,726$ 38,505$ 41,262$ 44,040$ 45,686$ 46,248$ 46,784$ 47,359$ 47,918$ 48,456$ 49,029$ 49,566$

12 35,726$ 38,505$ 41,262$ 44,040$ 46,784$ 47,359$ 47,918$ 48,456$ 49,029$ 49,567$ 50,125$ 50,663$

13 35,726$ 38,505$ 41,262$ 44,040$ 47,918$ 48,456$ 49,029$ 49,567$ 50,125$ 50,663$ 51,235$ 51,773$

14 35,726$ 38,505$ 41,262$ 44,040$ 49,029$ 49,567$ 50,125$ 50,663$ 51,235$ 51,773$ 52,345$ 52,882$

15 35,726$ 38,505$ 41,262$ 44,040$ 50,125$ 50,663$ 51,235$ 51,773$ 52,345$ 52,882$ 53,442$ 53,978$

16 35,726$ 38,505$ 41,262$ 44,040$ 51,235$ 51,773$ 52,345$ 52,882$ 53,442$ 53,978$ 54,552$ 55,088$

17 35,726$ 38,505$ 41,262$ 44,040$ 52,345$ 52,882$ 53,442$ 53,978$ 54,552$ 55,088$ 55,662$ 56,198$

18 35,726$ 38,505$ 41,262$ 44,040$ 53,442$ 53,978$ 54,552$ 55,088$ 55,662$ 56,198$ 56,759$ 57,307$

19 35,726$ 38,505$ 41,262$ 44,040$ 54,552$ 55,088$ 55,662$ 56,198$ 56,759$ 57,307$ 57,868$ 58,405$

20 35,726$ 38,505$ 41,262$ 44,040$ 54,552$ 56,198$ 56,759$ 57,307$ 57,868$ 58,405$ 58,978$ 59,514$

21 35,726$ 38,505$ 41,262$ 44,040$ 54,552$ 56,198$ 56,759$ 58,405$ 58,978$ 59,514$ 60,074$ 60,623$

22 35,726$ 38,505$ 41,262$ 44,040$ 54,552$ 56,198$ 56,759$ 58,405$ 58,978$ 60,623$ 61,187$ 61,723$

23 36,832$ 39,610$ 42,368$ 45,145$ 55,659$ 57,304$ 57,866$ 59,510$ 60,085$ 61,729$ 62,294$ 62,829$

24 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

25 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

26 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

27 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

28 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

29 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

30 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

31 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

32 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

33 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

34 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

35 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

36 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

37 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

38 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

39 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

40 37,842$ 40,620$ 43,378$ 46,155$ 56,669$ 58,314$ 58,876$ 60,520$ 61,095$ 62,739$ 63,304$ 63,839$

Education Level

http://www.mcsd.org/

2014 – 2015 BUDGET Performance Measurements


Performance Measurements

Our primary focus as a school district is student learning, which we often refer to as student achievement. Student achievement is the primary reason we exist, and the vast majority of our time, budget, energy and personnel are focused on increasing student achievement. Our schools are responsible for ensuring that our students graduate prepared for post secondary learning (college or trade school), for the world of work, and to be a productive citizen, and we take that responsibility very seriously. Our students are competing in a world market, even if they never leave Montrose and Olathe.

Our staff is taking on the challenge of increasing student achievement. The School Board set a goal that we will reach or exceed state average in all content areas by the end of the 2014-15 school year and continue to improve by 2% each year after reaching state average. Never has the District had the intention of stopping at “average,” so we continue the quest for excellence.

See graphs on the following pages that illustrate the District’s student achievement progress.

Performance Measurements 2014-2015 BUDGET


2014 – 2015 BUDGET Performance Measurements


Performance Measurements 2014-2015 BUDGET


2008 2009 2010 2011 2012 2013

Colorado Average 73.9% 74.6% 72.4% 73.9% 75.4% 76.9%

Montrose HS 89.3% 88.6% 86.5% 87.5% 88.6% 87.2%

Olathe HS 87.5% 90.2% 89.2% 92.1% 91.4% 86.8%

0%

20%

40%

60%

80%

100%

Pe

rce

nta

geG

rad

uat

ing

On

Tim

e

High School Graduation Rates(Source: CDE)

2014 – 2015 BUDGET Glossary


Glossary

The School District RE-1J budget contains specialized and technical terminology that is unique to school districts, public finance and budgeting. To assist the reader in understanding these terms, a glossary has been included in the document.

Abatements Abatements are complete or partial cancellations of a tax levy. Abatements usually apply to tax levies, special assessments, and service charges.

Account A record used to summarize all increases and decreases in a particular asset or any other type of asset, liability, fund equity, revenue, or expenditure.

Accreditation A state and local mandate that fosters greater yearly accountability from public schools and school districts. Districts will accredit their schools to assure compliance and accountability to standards and assessments.

Accrual Basis of Accounting Calls for recording revenue in the period which it is earned and recording expenses in the period in which they are incurred.

Accrual for Salaries and Benefits Salaries and benefits of personnel are paid over a 12-month period. The salaries and benefits however, are earned over a period of approximately 9 months. This situation results in an outstanding liability for accrued salaries and benefits at the end of the fiscal year.

ACT Test College entrance examination that is administered periodically throughout the year to provide prospective colleges and universities with academic achievement information about entering freshman students. ACT is mandated by the state for every 11th grade student. This test is designed to predict student performance in college freshman courses.

Adaptive PE Physical Education conditioning, training, and alternative recreational activities for a special needs/disabled population.

Agency Fund A fund used to account for assets held by a district or other governmental units in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds.

Amendment 23 A constitutional amendment adopted by voters in 2000 mandating that public education funding increase at the rate of inflation plus 1% for 10 years, and by inflation in future years. The 1% portion of the amendment expired in 2011.

Appropriation The setting aside by resolution of a specified amount of money for a fund with an authorization to make expenditures and incur obligations for specific purposes.

Glossary 2014-2015 BUDGET


Arbitrage The purchase of securities on one market for immediate resale on another in order to profit from a price discrepancy.

ARRA (American Reinvestment and Recovery Act of 2009) The Federal House of Representatives and Senate approved the Conference report for ARRA in February 2009. The requirements include stabilizing State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. The funding was for two (2) years.

ASBO Association of School Business Officials

Assessed Value The taxable value of property as determined by a tax assessor or government agency. Property taxes are paid on the basis of a property’s assessed valuation, which represents only a fraction of a property’s market value.

Assurance A statement in an audit that can be either positive or negative. A positive assurance consists of a statement by the auditors that the tested items were in compliance with applicable laws and regulations. Negative assurance is a statement that nothing came to the auditor’s attention as a result of specified procedures that caused them to believe the untested items are not in compliance with applicable laws and regulations.

At-Risk Factor A factor used to compute the additional amount of funding a district will receive for its at-risk pupils.

At-Risk Pupils Students that are eligible for the federal free lunch program because they come from families with incomes below a certain level. The Finance Act of 1994 provides additional funding based on the number of at-risk pupils enrolled in each district.

AYP (Adequate Yearly Progress) Represents the annual academic performance targets in reading and mathematics that the state, school districts, and schools must reach to be considered on track for 100% proficiency by school year 2013-14, according to the Colorado Department of Education.

Balanced Budget A budget in which planned revenues and other funds available (including beginning fund balance) equal or exceed planned expenditures.

BOCES (Board of Cooperative Educational Services) A regional educational service unit designed to provide supporting, instructional, administrative, facility, community, or any other services contracted by participating members. District RE-1J currently does not participate in a BOCES.

Bond Indebtedness The amount of principal and interest remaining to be paid from a bond issue.

Bond Issue



In general, bond issues are voted to pay the cost of school construction. The items which these funds can be used for are stated on the ballot when the issue is presented to the people. Money can be spent only for these authorized purposes. Proceeds from bond issues cannot be used to pay the daily operating expenses of a school district.

Bonds A certificate of debt issued by the school district guaranteeing payment of the original investment plus interest by a specified future date. This is associated with costs for capital facilities.

Bond Redemption Fund The Bond Redemption Fund is required by state law to provide revenue for repayment of bonded indebtedness which has been approved by the voters. Property taxes are levied each year in an amount sufficient to cover only the required principal and interest payments. These are long term obligations of the school district and by law, monies in this fund cannot be used for any purpose other than to retire voter approved debt.

Budget An annual financial plan that identifies revenues, specifies the type and level of services to be provided, and establishes the amount of money which can be spent.

Budgetary Fund Balance The portion of Fund Equity available for appropriation.

Building Fund The Building Fund is used to account for all resources available for acquiring capital sites, buildings, and equipment as specified by the related bond issue.

CAFR (Comprehensive Annual Financial Report) The year-end financial report of an entity, which contains a report of an independent auditor, a management letter, and supporting statistical information.

Capital Outlay An expenditure which results in the acquisition of fixed assets or additions to fixed assets which are presumed to have benefits for more than one year and which generally cost at least $5,000. Examples include expenditures for land or existing buildings, improvements of ground, construction of buildings, additions to buildings, remodeling of buildings, furniture, vehicles, and equipment.

Capital Project Fund The Capital Project Fund consists of a Building Fund for the construction of new schools and maintenance and upgrades to existing sites. It was supported through the sale of bonds which were approved by the voters.

Capital Reserve Fund A fund used by school districts for long-term capital outlay expenditures. Districts can only use the capital reserve fund to acquire land and buildings, construct new buildings or additions to buildings, purchase equipment that has a unit cost of at least $1,000, alter or improve existing buildings when the cost exceeds $2,500, acquire school buses, or enter into long-term lease agreements. Districts must allocate at least $292 per pupil to the capital reserve fund or insurance reserve fund in FY 2007-08.



Cash Basis The basis of accounting under which revenues are recorded when received in cash, and expenditures are recorded when cash is disbursed.

Categorical Programs Specific-purpose programs that are funded separately from a district’s total program funding under the school finance act. Examples include vocational education, special education, and pupil transportation. State funds for categorical programs must be used specifically for the program and are generally distributed based on a formula prescribed by law.

CDE Colorado Department of Education.

Central Support Services Activities, other than general administration, which support each of the other instructional and supporting services programs. These activities include communications, human resource services, and information technology.

Chart of Accounts A list of accounts systematically arranged, applicable to a specific concern, giving account names and numbers, if any. A chart of accounts, accompanied by descriptions of their use and of the general operation of the books of account, becomes a classification or manual of accounts - a leading feature of a “system of accounts.”

Colorado Preschool Program Fund A fund established in January 1989 to provide state preschool service to four and five year old children who lack overall learning readiness due to significant family risk factors; who are in need of language development; or who are receiving services from the state department of human services pursuant to Article 5 of Title 26, C.R.S., as neglected or dependent children and who would benefit from participation in the state preschool program.

Commodities Foods donated by the United States Department of Agriculture for use in Child Nutrition Programs.

Constitutional Spending Limit The maximum allowable change in a school district’s spending from one year to the next. The limit for school districts is equal to the percentage change in the district’s enrollment plus the Denver-Boulder inflation rate in the prior calendar year.

Contingency Reserve The Board of Education may provide for a contingency reserve in any of the funds. The amount is included in the appropriation for each fund and may be expended to meet unanticipated expenditures.

Contracted Services Services rendered by personnel who are not on the payroll of the district, including all related expenses covered by the contract.



Cost-of-Living Factor One of the three main factors used in calculating a district’s per pupil funding. The cost-of-living factor reflects the relative differences among the state’s 176 districts in the costs of housing, goods, and services for the regions in which districts are located.

CPI (Consumer Price Index) A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of cost of living and economic inflation. The Denver/Boulder/Greeley CPI is used by the state legislators for the school finance act.

C.R.S. (Colorado Revised Statutes) The official, currently revised, laws of the State of Colorado.

CSAP Colorado Student Assessment Program. This program is being replaced by the TCAP (Transitional Colorado Assessment Program).

Debt Service Fund Debt Service Fund includes expenditures for the retirement of debt and expenditures for interest on debt, except principal and interest of current loans.

Employee Benefits Compensation, in addition to regular salary, provided to an employee. This includes such benefits as health insurance, life insurance, retirement, and Medicaid.

Encumbrances Purchase orders, contracts, and/or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved.

Encumbrance Carry Forward Purchase orders, contracts and/or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. The amount is accrued and carried forward as an increase in appropriation for the next fiscal year.

Enrollment The number of pupils enrolled on October 1 within the budget year.

Enterprise Fund A fund to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs of providing services to the general public be financed or recovered primarily through user charges or where it has been decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate.

Entitlement Payments guaranteed by the state legislature to eligible recipients for a certain period of time. The primary example is State Equalization Program payments.

Equalization Program Funding The financial base of support for public education for school districts in Colorado as calculated by the Public School Finance Act of 1994.



Equalization Program Funding Per Pupil The total equalization program funding, as provided under the 1994 school finance act, of a district divided by the district’s funded pupil count. Equalization Program funding is provided by a combination of state funding, local property taxes, and specific ownership taxes as determined under the provisions of the 1994 school finance act.

Expenditures Charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year.

Fiscal Year Fiscal Year is a 12 month accounting period, which for District RE-1J begins July 1 and ends June 30 the following year.

Fund A fund is a fiscal and accounting entity, with a self-balancing set of accounts recording revenues, expenditures, financial resources, and all related liabilities and fund equities.

Fund Balance (also referred to as Fund Equity) The excess of fund assets and resources over fund liabilities. A portion of the equity of a governmental fund may be reserved or designated; the remainder is referred to as Fund Balance.

Funded Pupil Count/Pupil Count The number of pupils for which a school district receives funding under the school finance act. The funded pupil count is expressed in full-time equivalent (FTE) pupils to reflect the amount of time students spend in an instructional setting. The funded pupil count is the greater of: 1) a district’s October 1 enrollment count within the budget year, or 2) the average of the October 1 enrollment count within the budget year and from the two preceding years.

GAAP (Generally Accepted Accounting Principles) These accounting principles are uniform minimum standards of and guidelines to financial accounting and reporting. Adherence to GAAP assures that financial reports of state and local governments contain the same types of funds and account groups.

Gallagher Amendment An amendment to the Colorado Constitution requiring the bi-annual state-wide taxable values of commercial and residential properties to be maintained at a ratio of 55:45, respectfully. As a result, the rate of assessment on commercial property remains fixed at 29% of value, while the assessment rate of residential property changes in order to attain the ratio. Since 1984, the residential assessment rate has been reduced from 21% to a current 7.96%. An owner of a $100,000 house is thereby taxed from all applicable mill levies on a taxable value of $7,960. The tax base, known as assessed valuation, for a local government in a primarily residential area does not increase at the actual rate of growth, because the Gallagher amendment drives down the residential taxable values.

GASB (Governmental Accounting Standards Board) This board was established in 1984 to promulgate standards of financial accounting and reporting with respect to activities and transactions of state and local governmental entities.



General Fund General Fund is a fund to account for all financial resources except those required to be accounted for in another fund. All revenues, except those revenues attributable to the Special Revenue Funds, the Debt Service Fund, the Capital Project Fund, the Enterprise Fund, the Internal Service Funds, and any other fund authorized by the State Board of Education, shall be accounted for in the General Fund. Any lawful expenditure of the school district, including any expenditure of a nature which could be made from any fund, may be made from the General Fund.

GFOA (Government Finance Officers Association) This association is an organization of governmental finance officers whose mission is to enhance and promote the professional management of governmental financial resources.

Governmental Designated Purpose Grants Fund This fund includes grants received from federal, state, or local governments, or private sources to be used for specific and designated purpose. Examples are Title I, Title II, Vocational Education, etc.

Instruction Instruction includes the activities dealing with the teaching of pupils.

Instructional Supplies and Materials Instructional supplies and materials include, but are not limited to, supplies, textbooks, library books, periodicals, and other supplies and materials directly related to instruction.

Insurance Fund The Insurance Fund is used:

For the payment of or loss of or damage to the property or unit of local government.

To service and pay premiums on insurance.

For the payment of administrative expenses, loss control, workers’ compensation, and legal claims against the public entity which have been settled or compromised.

For the payment of judgments rendered against the public entity for injury.

Interfund Transfer Money which is taken from one fund and added to another fund. Interfund transfers are not receipts or expenditures on the district.

Internal Service Fund Fund established to finance and account for services and commodities furnished by a designated department or agency to other departments and agencies within a single governmental unit, or to other governmental units. Amounts expended by the funds are restored thereto either from operating earnings or by transfers from other funds, so that the original funds’ capital is kept intact. The district’s Employee Medical Fund is considered an internal service fund.

Lease/Purchase Agreement Contractual agreements that are termed leases, but that in substance are purchase contracts.



Local Share The portion of a district’s total program contributed directly by local taxpayers of the district. A district’s local share includes revenue from property taxes and specific ownership taxes.

MAP (Measures of Academic Progress) A computerized adaption of NWEA Levels tests used to check progress throughout the year and to chart incremental growth longitudinally. MAP is used in middle school proficiency centers, summer school, and for students in intervention programs.

Market Value The price at which a security is trading and could presumably be purchased or sold.

Maximum Increase in Per Pupil Funding The statutory cap which prohibits any district from receiving an annual increase in per pupil funding greater than 25 percent.

Mill Local tax rates against property are always computed in mills. A mill is one one-thousandth of a dollar of assessed value (0.001).

One mill produces $1 in tax income for every $1000 of property (assessed value) it is levied against.

One mill produces $1000 in tax income for every $1 million of property (assessed value) it is levied against.

Mill Levy The rate of taxation based on dollars per thousand of assessed valuation.

Minimum Per Pupil Funding A minimum per pupil funding level guaranteed to each district.

Modified Accrual Basis The accrual basis of accounting required for use by governmental funds. Under it, revenues are recognized in the period in which they become available and measurable and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority.

Negative Factor A funding rescission instituted in 2010 that cut school funding despite constitutionally required increases in education spending. This rescission was used to help Colorado legislators balance the State budget.

No Child Left Behind The latest federal legislation that enacts the theories of standards-based education reform, which is based on the belief that setting high standards and establishing measurable goals can improve individual outcomes in education. The Act requires states to develop assessments in basic skills to be given to all students in certain grades, if those states are to receive federal funding for schools. The Act does not assert a national achievement standard; standards are set by each individual state. http://en.wikipedia.org/wiki/No_Child_Left_Behind_Act

http://en.wikipedia.org/wiki/No_Child_Left_Behind_Act



Nutritional Service Fund A special revenue fund used to record the financial transactions related to food service operations. This fund was previously characterized as an Enterprise Fund prior to 2014-15.

NWEA (Northwest Evaluation Association) Achievement Level Tests A series of standardized achievement tests in reading, language usage, and mathematics that are aligned with our curriculum and content standards. The tests systematically increase in difficulty from one level to another. This makes it possible to give each student a test appropriate to his or her current level of achievement. These tests are scored on an equal-interval scale, like feet and inches (called a RIT Scale). Fall/spring testing every year allows us to calculate growth in achievement for every student. Scores can be added together to calculate accurate class or school averages. We can also compare to a large national norming population to calculate national percentile scores. Students from grades 3 through 8 take level tests in the spring. Fall testing is optional with the exception of 3rd grade reading, which is mandatory to test in the fall. Students in grade 9 who do not reach 8th grade proficiency levels take spring tests.

Object A category of goods or services purchased, as established by the Colorado Department of Education (CDE) Chart of Accounts.

Occupational Therapy Provides intervention for activities of daily living to a special needs/disabled population.

Operating Reserve The Board of Education may provide for an operating reserve in the General Fund. This reserve shall not exceed fifteen percent of the amount budgeted to the General Fund for the current fiscal year. This operating reserve shall not be appropriated or any moneys therein be expended during the fiscal year covered by the budget. These moneys shall be a continuing reserve and be considered as a beginning general fund balance for the following fiscal year.

Operations and Maintenance Activities concerned with keeping the physical plant open, comfortable, and safe for use and keeping the grounds, buildings, and equipment in an effective working condition and state of repair.

Override Local voters approved property tax revenue in excess of total program as defined under the Public School Finance Act. Overrides are capped at the greater of 20 percent of the district’s total program or $200,000.

PERA (Public Employees Retirement Association) A retirement association created by C.R.S. 24-51-201 which shall be a corporate body with the right to sue and be sued and the right to hold property for its use and purposes. It consists of the state division, the school division, the municipal division, and the judicial division. The purpose of PERA is to provide benefits to public employees when they retire or are disabled or to the family at the employee's death. It serves as a substitute for Social Security and is funded on an actuarial reserve basis. That is, money is set aside for retirement benefits while an employee is earning service credit and before benefit payments begin.



PPR (Per Pupil Revenue) The amount that results from combining the statewide base with the components of the funding formula as stated in the “Public School Finance Act of 1994” law. A district’s per pupil funding is multiplied by its pupil count to determine funding, before accounting for at-risk.

Program Group activities or operations that are directed to specific purposes or objectives.

Property Tax A local tax that is calculated by applying a mill levy to assessed value. Revenue from the property tax represents the primary source of local funding for K-12 public education.

Public School Finance Act of 1994 C.R.S. 22-53-101, et seq., enacted in 1994 seeks to provide for a thorough and uniform system of public schools throughout the state. It requires that all school districts operate under the same finance formula and that equity considerations dictate all districts be subject to the expenditure and maximum levy provisions of this act. Under the previous 1988 act, Colorado’s 176 school districts were classified into eight category groups with similar characteristics for funding purposes. The 1994 act, created under House Bill 94-1001, replaces the eight category groups with individually determined school district per pupil funding amounts.

Revenues Funds received, generally from taxes of a state/federal funding program, which do not cause an increase in a liability account.

Salaries Amounts paid to employees of the district who are considered to be in positions of a permanent nature or hired temporarily, including personnel substituting for those in permanent positions.

Salary Accrual Salaries and benefits of teachers and other school personnel are paid over a 12-month period, typically from September 1 through August 31. These salaries and benefits, however, are earned over a period of approximately nine months. This situation results in an outstanding liability for accrued salaries and benefits at the end of the fiscal year, which will be paid in the next fiscal year.

SARs (School Accountability Reports) Part of statewide legislation that provides both a rating performance for schools as well as a growth rating from year to year. All accountability systems rely on performance on the Colorado Student Assessment Program (CSAP). Sanctions are in place for schools remaining “unsatisfactory” for 3 years in a row.

SAT Test College entrance examination that is administered periodically throughout the year to provide prospective colleges and universities with academic achievement information about entering freshman students. SAT is not required by the district and participation is solely at the discretion of the individual student. This test is designed to predict student performance in college freshman courses.



Self-Insurance The underwriting of one’s own insurance rather than purchasing coverage from a private provider, by identifying specific areas of risk and assessing actuarially sound charges. The RE-1J Medical/Dental/Vision Insurance program is administrated as a self-insurance program.

Senate Bill 199 (SB 199) Colorado State Legislature passed SB 199 in 2007 which designated financing of public schools and included the freeze on local school districts property tax mill levies. The freeze will maintain at least a level effort of tax support for school district funding from local tax payers.

Size Factor One of the three main factors used in calculating a district’s per pupil funding. The size factor is designed to compensate districts for the cost pressures of economies of scale. It is formula-driven and based on enrollment.

Specific Ownership Tax (also known as S.O. Tax) A tax paid annually on motor vehicles instead of property taxes. Specific ownership taxes are part of a district’s local contribution to school funding.

Standards-Based Classroom Assessments Standards-based classroom tests matching CSAP format and including a toolkit of performance assessments and related rubrics are available for grades K-12. CTB McGraw-Hill Test Bank and Classroom Manager software is available in every school.

State Aid Funding provided by the state under the School Finance Act. Under the act, state aid provides the difference between a district’s total program and the district’s local share.

State Fiscal Stabilization Fund Legislature determined that stabilization of the state budget requires a reduction in the appropriation of the state’s share of total program funding for all districts. Implementation of the reduction shall be through a “State Budget Stabilization Factor” a negative factor in school finance formula.

State-Wide Base Per Pupil Funding Amount The dollar amount to which the factors are applied in determining each district per pupil funding level. Each district receives the same base per pupil funding amount.

Supplemental Budget Where money for a specific purpose, from other than ad valorem taxes (following adoption of the budget), subsequently becomes available to meet a contingency. A supplemental budget for expenditures, not to exceed the amount of said money, may be adopted and appropriation of said money made there from.

Supplies & Materials Amounts paid for material items of an expendable nature that are consumed, worn out, or deteriorated by use; or items that lose their identity through fabrication or incorporation into different or more complex units or substances.

Tabor Amendment



An amendment to the Colorado Constitution approved by voters in November 1992 which limits governmental mill levies, revenues, and expenditures. Tabor stands for the Taxpayers Bill of Rights. In an election in 1999, voters approved a ballot issue which allows the school district to exceed the revenue limitations. Since the author of Tabor is Doug Bruce, this election is often referred to as “de-Brucing.”

Tax Year The calendar year (January – December) in which tax bills are sent to property owners. These tax bills are reflected as revenue receipts to the school district in the current fiscal year (July – June).

TCAP Transitional Colorado Assessment Progam; Colorado’s standards-based assessment designed to provide a picture of student performance to schools, districts, educators, parents and the community. The primary purpose of the assessment program is to determine the level at which Colorado students meet the Colorado Model Content Standards in the content areas assessed

Total Per Pupil Funding Per pupil funding multiplied by the number of pupils, plus at-risk funding, divided by the number of pupils.

Total Program Per pupil funding multiplied by the number of pupils, plus at-risk funding.

Transfers A transfer does not represent a purchase; rather, it is used to show that funds have been handled without having goods and services rendered in return. Included here are transactions for interchanging money from one fund to the other.

Trust and Agency Funds Accounts for assets held by the district for student and teacher clubs and organizations.

adopted annual budget - montrose high school ... teacher salary schedules ... superintendent’s...

Documents