Parkview School District 2013-2014 Budget Hearing and

Annual Meeting

Parkview School District 2013-2014 Budget Hearing and

Annual Meeting

Monday, August 19, 20135:30 p.m.

Parkview Jr./Sr. High School LMC

Monday, August 19, 20135:30 p.m.

Parkview Jr./Sr. High School LMC

Parkview School District2013-2014 Budget Overview

• The Parkview School District is expected to have a budget deficit of $331,699.81 for the 2013-2014 fiscal year.

• The main reason for the budget deficit is a reduction in revenue from 2012-2013 due to declining enrollment.

• The budget deficit will paid for using funds from the District’s fund balance.

• 2013-2014 numbers are still estimates at this time as there are various factors that could still change the final amount.

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Parkview School District 2013-2014 Budget Timeline

• The 2013-2014 Budget for the Parkview School District is an estimate.

- The budget presented today may change between now and November 1st when the final levy is set.

- Events that could change the final numbers.

• The 3rd Friday pupil count in September.

• Final Equalization Aid numbers from DPI.

• The 2012-2013 audit.

• Staffing changes with new hires.

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Parkview School District2013-2014 Budget Adoption

• The Department of Public Instruction requires every school district in the state to complete a Budget Adoption sheet each year for the proposed budget for the upcoming year and the last two years.

• The chart above is the General Fund section of the Budget Adoption sheet. To view the full sheet, click here (under “2013-2014 Annual Meeting Finance Packet”).

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Parkview School DistrictBudget Cuts and Reductions for 2013-

2014

• The health insurance plan for the District was changed in an effort to reduce costs (cost savings on health insurance from prior year - $75,588.69, if no changes were made, the deficit would have been $245,349.26 larger).

- The deductible was raised to $2,000 single and $4,000 family, up from $1,000 single/$2,000 family.

- The employee contribution rate was increased from 4.99% to 16%. Employees could participate in a health risk assessment to reduce that rate down to 13%.

- Health insurance rates for the Parkview School District increased by 13.95% for 2013-2014, which offset most of the savings from the plan change.

• Post-employment benefits for certified staff were reduced from up to five years of health insurance coverage to up to three years of coverage.

- Cost savings from this change will not be realized until three years after the staff impacted retire.

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2013-2015 State Budget Changes Affecting Public Schools

• A revenue limit increase of $75 per pupil and a $75 per pupil categorical aid outside the revenue limit for 2013-2014.

• Changes to authority and reporting requirements for the Community Service Fund (Fund 80).

• Click here for a full breakdown of the changes in the 2013-2015 State Budget. 6

2013-2015 State Budget Impact on the Revenue Limit

• Although the revenue limit was increased by $75 per pupil, the revenue limit for Parkview School District does not increase due to non-recurring exemptions as a result of declining enrollment.

• Click here for a more detailed explanation of how non-recurring exemptions impact the revenue limit (under “Hold Harmless Letter”).

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Non-recurring exemptions

Parkview School District Revenue Limit

• The revenue limit is adjusted each year based on many factors including enrollment, property value and a per pupil adjustment.

• From 2001 to 2010, the average per pupil adjustment amount was an increase of $237.90.

• In 2011, the per pupil adjustment amount was a decrease of $528.81 for every district in the state (Act 10).

• In 2012, the per pupil adjustment amount was an increase of $50 and is expected to be $75 this year.

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YearRevenue

LimitYearly

Change

09-10$11,025,83

10.98%

10-11$11,102,55

60.70%

11-12$10,162,21

1-8.47%

12-13 $9,645,261 -5.09%

13-14* $9,569,886 -0.78%

Parkview School District Revenue Limit History

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Parkview School District State General Aid

• Determining state general aid each year involves many different factors and a complex calculation.

• State general aid for the Parkview School District has been decreasing mainly due to declining enrollment and the amount of funding from the state, the two main factors in the equation.

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YearState

General AidYearly

Change

09-10 $7,431,276 -3.89%

10-11 $7,097,241 -4.49%

11-12 $6,387,517 -10.00%

12-13 $5,888,538 -7.81%

13-14* $5,611,745 -4.70%

Parkview School District Local Property Taxes

• After a 12% increase in 2010-2011, the tax levy decreased by 5.29% and then 1.04% in 2012-2013. It is expected to increase by 0.78% in 2013-2014.

• The relation between what a tax payer pays and the total levy will vary based on property values and appropriation.

• The total tax levy is determined based on the revenue limit minus the amount of state aid received.

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Year Tax LevyYearly

Change

09-10 $3,741,542 5.93%

10-11 $4,190,570 12.00%

11-12 $3,967,282 -5.33%

12-13 $3,927,580 -1.00%

13-14* $3,957,026 0.78%

Parkview School District State General Aid and Local Property

Tax History

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Parkview School District Mill Rate

• The mill rate is a number used to equate the amount of taxes that will be assessed on a property that has a certain valuation.

• For example, a mill rate of $10.12 would equal a tax levy of $1,012 on a house valued at $100,000.

• An increase or decrease of the mill rate could vary due to changes in property values.

• It is important to remember that the mill rate is an average for multiple municipalities and an individual’s actual mill rate could vary.

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YearState

Avg. Mill Rate

Dist. Avg. Mill

Rate

Yearly Chang

e

09-10

$9.18 $8.62 4.36%

10-11

$9.80 $10.0216.24

%

11-12

$9.88 $9.87 -1.50%

12-13

$10.21 $10.02 1.52%

13-14*

n/a $10.12 1.00%

Parkview School District Enrollment FTE

• Enrollment FTE (Full-Time Equivalency) is not a head count, but a calculation based on the September counts, summer school enrollment and resident additions and subtractions.

• The Parkview School District is currently experiencing declining enrollment, which has had an adverse affect on the revenue limit and the amount of state general aid the District receives.

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YearEnrollment

FTEYearly

Change

09-10 1,050 -3.58%

10-11 999 -4.86%

11-12 962 -3.70%

12-13 939 -2.39%

13-14* 905 -3.62%

Parkview School District Enrollment FTE History

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Parkview School DistrictOpen Enrollment

• In addition to declining enrollment, the Parkview School District also has more students enrolling out of the District than enrolling in through open enrollment.

• When a student who lives in a district decides to attend another district, the resident district must pay the other district open enrollment tuition for the student.

• Open enrollment tuition per student was $6,335 for 2012-2013 and will be $6,485 for 2013-2014.

• Estimating open enrollment numbers is difficult before the September count due to many different factors.

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Year OE In FTEOE Out

FTE

09-10 30.5 79.7

10-11 37.5 67.2

11-12 38.0 72.1

12-13 46.5 122.3

13-14* 57.0 132.0

Parkview School District General Fund Revenue

• It is projected that 94.07% of General Fund (Fund 10) revenue will come from state aid (57.30%) and local property taxes (36.77%).

• The other sources of revenue include open enrollment tuition, district fees, and federal grants.

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Parkview School District General Fund Expenses

• It is projected that 66.86% of general fund expenses will be from salaries and benefits for the General Fund (Fund 10).

• Purchased services include expenses for services to the District, dues and fees, insurance and open enrollment tuition.

• Other expenses include lease payments and fund transfers.

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Parkview School District General Fund Revenue and Expense

History

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Parkview School District Comparative Cost per

Member

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Parkview School District Fund Balance

• Fund balance is not the same as a cash account, it is a combination of assets and liabilities.

• The actual cash in the bank is usually a lot lower during the year than the fund balance.

• If the fund balance drops below $2,000,000, the Parkview School District may need to short-term borrow to cover expenses before revenues come in.

• The fund balance % is the fund balance amount divided by expenses.

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YearEnding Balance

Fund Balance

%

09-10$2,646,712.

2422.16%

10-11$2,661,344.

5722.92%

11-12$2,772,039.

8924.91%

12-13$2,521,063.

4023.94%

13-14*$2,189,363.

5921.16%

Parkview School District Fund Balance History

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Parkview School District 2013-2015 Budget Changes for the Community Service Fund (Fund 80)

• A school board must identify the expenditures that will be funded from the Fund 80 levy in the written report for the annual meeting.

• A school district is required to report the information on the Fund 80 expenditures to DPI within 10 days of the annual meeting.

• A school district must post the information on Fund 80 expenditures for the year on their website by August 30, 2013.

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Parkview School DistrictCommunity Service Fund (Fund 80)

• Since there is enough fund balance in Fund 80 to pay for the expenses listed, the Parkview School District will not levy in Fund 80 for the 2013-2014 fiscal year.

• However, Act 20 still requires the District to report all expenses in Fund 80 for the fiscal year.

• The expenses listed are a summary of the costs. For a more detailed breakdown of Fund 80 costs for 2013-2014, view the “2013-2014 Annual Meeting Finance Packet” on the Parkview website.

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Description Amount

Salaries and Benefits

$12,152.90

Purchased Services

$4,100.00

General Supplies $1,000.00

Total $17,252.90

Contact Information

• Ben Irwin - Business Manager

• Email - birwin@email.parkview.k12.wi.us

• Phone - 608-879-2717 ext. 6114

• Office located in the Parkview Jr./Sr. High School Main Office

• A copy of this PowerPoint and other budget information can be found on the Parkview School District website under the Business Office link.

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