powerpoint presentation€¦ · capital projects fund 22 local property-tax revenues received...

SY 2017–18 Q4 FINANCE UPDATE

Weston Young, CPA – Chief Financial Manager

August 30, 2018

Overview and Purpose

3

1

2

3

4

A B C

Board-Appropriated Funds

4 July 2017–June 2018

* Revenues for debt service, capital projects, transportation and bus replacement are received semiannually.

$231,707,534 $240,586,086 $253,374,086

$45,116,474

$72,543,393 $33,280,551

$37,056,246

$39,600,000

$35,438,146

$35,600,602

$39,749,105

$36,083,961 $9,657,415

$12,932,273

$11,830,056

$251,422,434 $264,124,932 $266,143,613

$54,064,862 $57,251,000 $54,122,103

$38,334,169

$55,583,918 $36,913,960

$34,067,657

$41,033,713

$32,618,562 $13,750,219

$13,295,241

$10,235,245

BusReplacement

Transportation

Capital Projects

Debt Service

General Fund

SY 2016–17 YTD SY 2017–18 YTD

ProjectionSY 2017–18 YTD

Actual

Revenue$359,138,271

Expenditure$391,639,341

Revenue$405,410,857


Revenue$370,006,800


Cash Balances

5 Historical Fund Balances

Fund Balances 6.30.2016 6.30.2017 6.30.2018

General and Rainy Day $72,000,000 $52,000,000 $39,000,000

Debt Service Funds $35,000,000 $26,000,000 $5,000,000

School Lunch $30,000,000 $26,000,000 $22,000,000

CPF/Transportation $33,000,000 $29,000,000 $33,000,000

Other Funds $30,000,000 $24,000,000 $22,000,000

Total Funds $200,000,000 $157,000,000 $121,000,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

6.30.2016 6.30.2017 6.30.2018

General and Rainy Day

Debt Service Funds

School Lunch

CPF/Transportation

Other Funds

Content updated 7.22.2018

Supplier Diversity

6

6% 2% 0%1%

1%

90%

January–June 2018

Total Eligible Expenditures

$28,800,000

Total Eligible Expenditures

$44,000,000

4%*4%

1%

1%

1%

89%

January–June 2017

7

• Additional appropriations approved by Board in May 2018 were approved by the Department of Local Government Finance (DLGF) in June 2018

• Executed grade configuration and Facilities Utilization Plan

• Made system upgrades and process improvements

• Implemented transportation efficiencies

• Implemented spending limits one month earlier than planned

• Reduced staffing and hiring for remainder of school year

Budget Updates

2017–18 Budget Highlights

8

Financial Landscape

A B C D

Funds SY 2015–16 SY 2016–17 SY 2017–18

1 Interest Income $640,000 $1,600,000 $1,930,000

2 Textbook Rental $134,000 $280,000 $280,000

3 Medicaid Reimbursement $674,000 $941,000 $1,865,000

4 Grant Contributions $612,000 $1,636,000 $4,114,000

5 Total Annual $2,060,000 $4,457,000 $8,189,000

6 Restricted Account Transfers $0 $4,600,000 $4,520,000

7 Total Annual & One-Time $2,060,000 $9,057,000 $12,709,000

Revenue Trends


9

Financial Landscape

Transportation Expenditure Trends

• SY 2017-18 achieved $5 million reduction from SY 2016-17

• Optimized Tier Structure

• New Fuel-Efficient Bus Fleet

• Optimized Routing

• Consolidation of High Schools

• Reduced Extracurricular Transportation

• Improved Tier Structure and Routing

Budget Updates

10

• Revised allocations to school and Central Services budgets

• Balanced conserving cash and maintaining essential services

• Timing of cost-savings initiatives

• Capital and Operating Referenda

• Leverage available General Obligation Bond capacity

• High school all-choice model

• Systems and processes to support school-level decision-making

2018–19 Budget Planning

11

Financial Landscape

A B C D E F

Funds Requested

Levy

Projected

Circuit Breaker

Projected Net

Revenue

Projected

Expenditures

Projected

Deficit

1 General n/a n/a $242.7M ($269.0M) ($26.3M)

2 Capital Projects $38.2M ($10.6M) $27.6M ($32.0M) ($4.4M)

3 Transportation $38.2M ($11.2M) $27.0M ($37.7M) ($10.7M)

4 Bus Replacement $12.4M ($4.7M) $7.7M ($11.4M) ($3.7M)

Total Projected Operating Funds Deficit ($45.1M)

SY 2018–19 Revenues and Expenditures

Subject to change due to state, federal or local funding fluctuations

Original appropriations from SY 2018–19 budget

development in spring 2018 projected structural deficits


12

Financial Landscape

A B C D E F G

Funds Projected

Certified

Levy

Projected

Circuit

Breaker

Projected

Misc.

Income

Projected

Net

Revenue

Projected

Expenditures

Projected

Deficit

1 General n/a n/a n/a $242.7M ($260.0M) ($17.3M)

2Capital

Projects $35.3M ($6.3M) $3.0M $32.0M ($32.0M) $0

3 Transportation $33.1M ($5.9M) $3.0M $30.2M ($33.7M) ($3.5M)

4Bus

Replacement $12.0M ($2.1M) $0.8M $10.7M ($10.8M) ($0.1M)

Total Projected Operating Funds Deficit ($20.9M)

SY 2018–19 Revenues and Expenditures


Revised and updated net cash flow projections continue

to project structural deficits


13

Financial Landscape


FundsActual Balance

6.30.2018

Projected

Net Cash Flow

Projected

Balance

6.30.2019

General $20.4M ($17.3M) $3.1M

Capital

Projects$21.8M $0 $21.8M

Transportation $9.1M ($3.5M) $5.6M

Bus

Replacement$2.2M ($100,000) $2.1M

Subtotal $53.0M ($20.9M) $32.1M

Cash balances based on projected net cash flows


Projected SY 2018–19 Cash Flows

14

Financial Landscape


Funds

Actual

Balance

6.30.2018

Projected

Net Cash Flow

Rainy-Day

Fund

Projected

Balance with

Additional

Funds

6.30.2019

Fund

Balance

% (1)

General $20.4M ($17.3M) $18.9M $22.0M 8%

Capital Projects $21.8M $0 $0 $21.8M 68%

Transportation $9.1M ($3.5M) $0 $5.6M 17%

Bus Replacement $2.2M ($100,000) $0 $2.1M 19%

Rainy Day $18.9M $0 ($18.9M) $0 0%

Total $72.4M ($20.9M) $0 $51.5M 15%

Projected SY 2018–19 Cash Flows

Including Rainy-Day Funds

Notes:

(1) – Fund Reserve Balance Policy (Board Policy 6227) provides guidance on retaining reserves equal to at least 1 to 3 months or 8% to

25% of annual expenditures.

Financial Landscape

15

• Relieve Capital Projects Funds to fund $3M in technology and $10M in high school and middle school renovations

• Reimburse $21M previously paid by Capital Projects Funds

• Expect cash to be available September 2018

• Seeking waiver from USDA to allow current excess funds in Food Service to reimburse expenditures previously paid by General Fund

• If approved, expect cash to be available Spring 2019

• If Operating Referendum passes, first semiannual payment will be received June 2019 — estimated to be $14M ($28M annual amount)

• If Capital Referendum passes, bonds will be issued spring or summer 2019

SY 2018–19 Cash Flow Considerations

SY 2017–18 Q4 Finance Update

16 Key Messages

SY 2017–18 expenditures were strategically aligned with

available funding in Board-appropriated funds.

SY 2018–19 revenue projections have improved and

expenditures have been aligned to support the district’s

essential services.

Continuing the pursuit of opportunities to sustain cash inflows

for both short-term and long-term needs.

The Appendix contains additional details on financial

matters which have previously been presented to the

Board of School Commissioners or have been reviewed and

discussed by the Board’s Finance Committee.

17 APPENDIX

General Fund

18

Appropriation = $272M ($260M original appropriation + $12M additional

appropriation approved)

State tax revenue received monthly

$231,707,534 $240,586,086 $253,374,086 $251,422,434

$264,124,932 $266,143,613

SY 2016–17 YTD ACTUAL SY 2017–18 YTD PROJECTED SY 2017–18 YTD ACTUAL

General FundJuly 2017–June 2018

Revenue Expenditures

General Fund

19

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

General Fund and Related Supporting FundsCalendar Year 2010 Through SY 2017–18

Education JobsRevenue

Fiscal StabilizationRevenue

Other LocalRevenue

Tuition SupportRevenue

Total Expenditures

General FundCash Balance

Debt Service Fund

20

Local property-tax revenues received semiannually

Payments represent loan payments

$45,116,474

$72,543,393

$33,280,551

$54,064,862 $57,251,000

$54,122,103


Debt Service FundJuly 2017–June 2018


Debt Service Funds

21

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Debt Service FundsCalendar Year 2010 Through SY 2017–18

Other LocalRevenue

Misc. TaxRevenue

Property TaxRevenue

TotalExpenditures

Cash Balance

Capital Projects Fund

22


Property-tax caps decrease receipts, reducing revenue received

Includes utility payments and facilities maintenance projects

$37,056,246$39,600,000

$35,438,146$38,334,169

$55,583,918

$36,913,960


Capital Projects FundJuly 2017–June 2018


Capital Projects Fund

23

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Capital Projects FundCalendar Year 2010 Through SY 2017–18

Other LocalRevenue

Misc. TaxRevenue

Property TaxRevenue

TotalExpenditures

Cash Balance

Transportation Operating Fund

24



$35,600,602

$39,749,105

$36,083,961 $34,067,657

$41,033,713

$32,618,562


Transportation Operating FundJuly 2017–June 2018


Transportation Operating Fund

25

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Transportation Operating FundCalendar Year 2010 Through SY 2017–18

TemporaryLoans

Other LocalRevenue

Misc. TaxRevenue

Property TaxRevenue

TotalExpenditures

Cash Balance

Bus Replacement Fund

26



$9,657,415

$12,932,273 $11,830,056

$13,750,219 $13,295,241

$10,235,245


Bus Replacement FundJuly 2017–June 2018


Bus Replacement Fund

27

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Bus Replacement FundCalendar Year 2010 Through SY 2017–18

TemporaryLoans

Other LocalRevenue

Misc. TaxRevenue

Property TaxRevenue

TotalExpenditures

Cash Balance

Rainy-Day Fund

28

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Rainy-Day FundCalendar Year 2010 Through SY 2017–18

TemporaryLoans

Other LocalRevenue

Misc. TaxRevenue

Property TaxRevenue

TotalExpenditures

Cash Balance

Supplier Diversity

29

January–June 2018 January–June 2017 Change

Total Eligible

Expenditures$44.0M $28.8M

$15.2M

+53%

Expenditures to Minority

Owned

$2.4M

5.5%

$1.1M

3.8%

+$1.3M

+1.7%

Expenditures to

Women Owned

$1.0M

2.3%

$1.2M

4.2%

-$0.2M

-1.9%

Expenditures to

Veteran Owned

$27K

0.1%

$467K

1.6%

-$440K

-1.5%

Expenditures to

Minority-Women Owned

$602K

1.4%

$184K

0.6%

+$418K

+0.8%

Total Certified

MWBE Owned

$4.1M

9.2%

$3.0M

10.3%

+$1.1M

-1.1%

Expenditures to

Noncertified

$599K

1.4%

$255K

0.9%

+$344K

+0.5%

Long-Term Budget Planning

30


31

• Per-pupil funding considerations

• Special education and English learners

• Compensation and health insurance benefits

• Textbook adoptions

• Technology

• Property-tax cap impact

• Deferred maintenance vs. strategic initiatives

33,408 32,595 30,557 30,496

29,570 27,988

26,145 24,032

--

- --

539

1,762

2,897

850 1,398 3,425

--

1,986 1,974 1,903 1,602 1,616

1,563

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

SY 2010-11 SY 2011-12 SY 2012-13 SY 2013-14 SY 2014-15 SY 2015-16 SY 2016-17 SY 2017-18

IPS Operations Innovation-LEA Innovation-Non-LEA Turnaround


32

32,47031,473 30,979 30,921

31,91732,54333,408

32,595

Historical Perspective: Enrollment


33

$7,367 $7,332

$7,209 $7,265

$7,058

$6,732

$6,971

$6,934

$6,400

$6,600

$6,800

$7,000

$7,200

$7,400

$7,600

2010–11 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17 2017–18


Historical Perspective: State Fund Budget $ Per Pupil

34

$9,086,317,992 $9,024,119,677

$9,745,667,423 $9,667,203,109

$10,045,427,309

$10,738,720,168

$8,000,000,000

$8,500,000,000

$9,000,000,000

$9,500,000,000

$10,000,000,000

$10,500,000,000

$11,000,000,000

2013 2014 2015 2016 2017 2018


Historical Perspective: Certified Assessed Value


35

Percent Change in Gross Assessed Value of

All Indiana Property 2008–16


36 Certified Tax Rates

2013 2014 2015 2016 2017 2018

Referendum Debt $0.2433 $0.0790 $0.1621 $0.2025 $0.0777 $0.1232

Retirement/Severance $0.0365 $0.0283 $0.0325 $0.0362 $0.0140 $0.0229

Debt Service $0.4249 $0.4014 $0.3958 $0.4654 $0.0983 $0.2516

School Bus Replacement $0.1108 $0.1145 $0.1089 $0.0735 $0.1125 $0.1094

Transportation $0.2954 $0.2929 $0.3036 $0.3478 $0.3323 $0.3036

Capital Projects $0.3720 $0.3728 $0.3475 $0.2916 $0.3387 $0.3229

$0.0000

$0.2000

$0.4000

$0.6000

$0.8000

$1.0000

$1.2000

$1.4000

$1.6000$1.4829

$1.2889

$1.3504 $1.4170

$0.9735

$1.1336


37 Indiana Forecast Revenues 2017–19

Budget

2017

Budget

2018

Budget

2019

Average Change

2017–19

Revenues 15,389 15,780 16,378 3.2%

Sales Tax 7,433 7,630 7,886 3.0%

Indiana

Income Tax5,473 5,661 5,997 4.7%

Corporate

Income Tax914 949 975 3.2%

Gaming 432 419 402 -3.6%

All Other 1,137 1,121 1,119 -0.8%


38

Indiana State Appropriations

as Percent of Indiana Total Personal Income (Estimated 2017–19)


39 Indiana Budget Appropriations 2017–19

Budget

2017

Budget

2018

Budget

2019

Average Change

2017–19

Appropriations 15,989 15,861 16,430 1.4%

K–12 Education 8,117 8,218 8,375 1.6%

Higher Education 1,902 1,935 1,962 1.6%

Medicaid 2,242 2,107 2,365 2.7%

Health/Social

Services1,267 1,353 1,407 5.4%

Public Safety 983 1,003 1,021 1.9%

All Others 1,478 1,246 1,300 -6.2%


40


Example Allotments

41 Example: Traditional School Funding

Local State Federal

Combination


Funds Distributed to

School Through IPS

School Admin. & Choice

Programming

Title I Program

Student-Based

Allocation

Funds Distributed

Directly to School

Services Provided

to School

Food Services

Facilities &

Transportation

Special Education

& EL

Example Allotments

42 Example: Traditional School Funding


Through SBA

Outside SBA

Allocation Source (Under SBA) $ PP Students Dollars

Base Allocation $3,758 349 $1,311,542

Grade Weight $400 161 $64,400

Poverty Weight $500 302 $151,000

Baseline Supplement $45,000

Transition Adjustment $120,000

Strategic Support -

Total: $1,691,942

Restricted Funds (not comprehensive)

Title I Allocation $124,238

Title II/III Allocation $16,799

Total: $141,000

Locked Resources (not comprehensive)

Custodial Services $120,338

Food Service $218,695

Special Education $342,000

English Learners $78,987

School Admin. and Central Services $253,251

Choice Programming $0

Transportation Services $400,695

Facilities Maintenance $500,695

Total: $1,915,000

Example Allotments

43 Example: Innovation-LEA School Funding


School Through IPS

School Admin. & Choice

Programming

Title I Program

Student-Based

Allocation

Funds Distributed

Directly to School

Services Provided

to School

Food Services

Facilities &

Transportation

Special Education

& EL

Local State Federal

Combination


Example Allotments

44 Example: Innovation-LEA School Funding


Allocation Source (Under SBA) $ PP Students Dollars

Base Allocation $3,758 349 $1,311,542

Grade Weight $400 161 $64,400

Poverty Weight $500 302 $151,000

Baseline Supplement $45,000

Transition Adjustment $120,000

Strategic Support -

Total: $1,691,942




Total: $141,000


Custodial Services $120,338




School Admin. and Central Services $253,251

Choice Programming $0

Transportation Services $400,695

Facilities Maintenance $500,695

Total: $1,915,000

Per-Pupil Agreement

Services and OperationsPer Agreement

Example Allotments

45 Example: Innovation-Non-LEA School Funding

Local State Federal

Combination



School Through IPS

State Tuition &

Complexity Support

State Special

Education Support

Funds Distributed

Directly to School

Title Programs

Special Education

& EL

Food Service

Services Provided to School

(if elected in agreement)

Food Service

Facilities &

Transportation

*

Special Education

& EL

*Non-LEA innovation schools may utilize state tuition dollars to fund transportation and facilities; however,

some innovation operators are provided transportation and facilities due to access to IPS property-tax

funded services. See individual non-LEA innovation agreements for more details.

Example Allotments

46 Example: Innovation-Non-LEA School Funding

Allocation Source $ PP Students Dollars

Tuition Support $5,088 349 $1,775,712

Complexity Index Support $1,661 349 $579,689

Special Education Support – Level 1 $500 10 $5,000

Special Education Support – Level 2 $2,300 3 $6,900

Special Education Support – Level 3 $8,976 1 $8,976

Equity Retainer -

Total: $2,376,277

Per-Pupil

Agreement

Services and

Operations

Per Agreement




Total: $141,000


Custodial Services ($120,338)




School Admin. and Central Services ($253,251)

Transportation Services* ($400,695)

Facilities Maintenance* ($500,695)

Total: ($656,000)

*Non-LEA innovation schools may utilize

state tuition dollars to fund transportation

and facilities; however, some innovation

operators are provided transportation and

facilities due to access to IPS property-tax

funded services. See individual non-LEA

innovation agreements for more details.


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