1

School District of Omro

Annual Meeting and Budget Hearing

Middle School Library

Thursday, October 3, 2013 6:00 pm

Prepared by: Nick Curran, Superintendent of Business Operations

ncurr@omro.k12.wi.us 920-303-2310

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Agenda

I. Call to order – President, Board of Education

Presentation of Certificate of Proof of Public Notice

II. Election of Chairperson

III. Appoint Parliamentarian

IV. Approve Minutes from the October 4, 2012 meeting

V. Report of 2012-13 Financial Audit

VI. 2013-14 Budget Hearing

VII. Resolution #1 – Adoption of Tax Levy

Current Operation - $3,846,625

Debt Retirement - $1,223,278

TOTAL LEVY - $5,076,560

VIII. Resolution #2 – Salaries of Board of Education

Resolution #3 – Disposal of Surplus Equipment

Resolution #4 – Depositories of School Funds

Resolution #5 – Future Meeting Date

IX. Additional Resolutions from the Floor

X. Adjournment

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2012-13 Annual Meeting and Budget Hearing Minutes October 4, 2012

The meeting was called to order at 6:00 p.m. by Board President Peter Kromm. The Certificate of

Proof of Giving Public Notice was presented. There were 7 residents present and 0 non-residents

present. Board of Education members present: Peter Kromm, Cheryl Potratz, Jamie Salzwedel, and

Tricia Retzlaff.

Pledge of Allegiance

It was moved by Tricia Retzlaff and seconded by Viola Schmick to nominate Cheryl Potratz as

Chairperson of the meeting. A unanimous vote was cast for Cheryl Potratz as Chairperson.

Viola Schmick was appointed Parliamentarian by Chairperson Potratz.

It was moved by Tricia Retzlaff, seconded by Peter Kromm, and carried, to approve the Minutes of

October 7, 2010 as presented.

Nicholas Curran presented information regarding the 2010-2011 School District Financial Audit.

Nicholas Curran presented the proposed Receipt Budget Summary and Expenditure Budget

Summary for 2011-2012. Proposed revenues total $12,528,348.65 and proposed expenditures total

$12,301,616.73. The tax levy proposed is $3,826,123 for operation and $1,220,965 for debt

retirement.

Chairperson Potratz read Resolution #1 – Adoption of Tax Levy:

Resolved, that this annual meeting establish a tax levy of $3,826,123 for the current

operation of the school district and levy for debt retirement of $1,220,965.

It was moved by Tricia Retzlaff, seconded by Peter Kromm, and carried, to adopt Resolution #1.

Chairperson Potratz read Resolution #2 – Salary-Board of Education:

The present salary for the Board of Education positions is $2,000.00 annually. Board

members devote many hours to meetings, not counting the hours spent in preparation.

It was moved by Wayne Schmick, seconded by Peter Kromm, and carried, to have Board salaries

remain at $2,000.00 annually.

Chairperson Potratz read Resolution #3 – Disposal of Surplus Equipment:

From time to time the school district has equipment items that should be sold as new and

updated items are added to the inventory, such as typewriters, sewing machines, etc., and

Therefore, be it resolved that the School Board be authorized to sell equipment no longer

needed by the school district.

It was moved by Tricia Retzlaff, seconded by Jay Potratz, and carried to adopt Resolution #3.

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Annual Meeting

October 6, 2011

Chairperson Potratz read Resolution #4 – Official Depositories:

Resolved that the First National Bank be designated as the official depository of

school district funds.

It was moved by Peter Kromm, seconded by Tricia Retzlaff, and carried, to adopt Resolution #4.

Chairperson Potratz read Resolution #5 – Authorizing the Sale of Real Property:

WHEREAS, Section 120.10(12), Wis. Stats., authorizes the School Board to sell real

property belonging to and not needed by the School District of Omro, subject to the

approval of the electors at an Annual Meeting; and

WHEREAS, the School District of Omro desires to sell the real property described as:

Enterprise School and the related real property located at 8389 Liberty School Road,

Omro, Wisconsin, consisting of +/- 8.5 acres; and

WHEREAS, the sale of the property is in the best interest of the School District of

Omro.

NOW, THEREFORE, BE IT RESOLVED, that the School Board of the School

District of Omro is hereby authorized to sell the real property described as: Enterprise

School and the related real property located at 8389 Liberty School Road, Omro,

Wisconsin, consisting of +/- 8.5 acres, pursuant to such terms and conditions as

determined to be reasonable and appropriate by the School Board.

It was moved by Viola Schmick, seconded by Tricia Retzlaff, and carried, to adopt Resolution #5.

Chairperson Potratz read Resolution #6 – 2012 Annual Meeting:

Resolved that the 2012 Annual Meeting of the School District of Omro be Thursday,

October 4, 2012.

It was moved by Jay Potratz, seconded by Wayne Schmick, and carried, to have the 2012 Annual

Meeting on Thursday, October 4, 2012.

It was moved by Jay Potratz, seconded by Wayne Schmick, and carried 4-3, to advise the Board to

hire an auctioneer for the sale of the Enterprise School property.

It was moved by Tricia Retzlaff, seconded by Wayne Schmick, and carried, to adjourn the meeting

at 7:44 p.m.

Nicholas Curran

Superintendent of Business Operations

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Report of 2012-13 Financial Audit

Revenues 2012-13 Budget

FINAL Monthly

Activity Final Activity % Received

Tax Levy $3,925,667 $1,421,541 $3,925,667 100.00% Other Local Sources 117,700 13,351 115,452 98.09% Open Enrollment Tuition 457,000 467,932 467,932 102.39% Grants Through CESA 6 - 7,028 7,028 Transportation Aid 34,000 1,294 36,266 106.66% Library Aid 40,631 - 42,894 105.57% Special Aid Adjustment 63,600 63,600 63,600 100.00% Equalization Aid 7,613,271 2,755,641 7,613,271 100.00% Other State Revenues 24,752 6,752 27,742 112.08% Federal Grants 168,440 45,833 138,185 82.04% Misc Revenues 3,000 5,161 14,966 498.85%

Totals $12,448,061 $4,788,134 $12,453,002 100.04%

Expenses 2012-13 Budget

FINAL Monthly

Activity Final Activity % Expensed

Omro Elementary/Patch/4K $53,063 $4,225 $52,302 98.57% Payment to Partnerships 14,400 - 16,800 116.67% Elementary Library 21,386 6,759 20,516 95.93% Middle School 37,955 2,898 28,467 75.00% Middle School Sports 5,105 - 5,395 105.69% Instrumental Music 6,940 3,577 6,985 100.65% High School 67,261 4,835 62,699 93.22% High School Sports 60,000 6,760 59,134 98.56% Vocal Music 2,900 20 1,514 52.19% HS/MS Library 33,962 7,251 28,614 84.25% Expenses related to federal grants 168,440 19,406 138,185 82.04% Summer School 145,150 81,502 116,061 79.96% Salaries and Benefits 7,536,967 1,530,784 7,482,832 99.28% Purchased Services 859,983 590,190 791,674 92.06% Non-Capital Equipment 24,943 548 29,103 116.68% Capital Equipment 4,800 - 9,636 200.76% Short Term Interest 2,000 - 154 7.69% Insurance & Judgments 108,302 - 40,558 37.45% Technology 205,000 28,958 230,620 112.50% Pupil Transportation 752,400 120,446 722,159 95.98% Maintenance 160,000 17,034 217,648 136.03% Utilities 314,500 4,901 190,855 60.69% Curriculum 90,000 17,511 66,259 73.62% Safety/Nurse 8,650 23,728 47,923 554.03% Central Supply 41,000 1,614 38,264 93.33% Other Objects 14,500 952 15,531 107.11% Transfer to Special Ed 1,232,090 1,042,856 1,042,856 84.64% Transfer to Debt Service FUND 38 96,730 - 96,730 100.00%

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Transfer to Food Service - - - 0.00% Transfer to Fund 73 160,000 137,062 137,062 85.66% Assigned Fund Balance Items 322,300 261 199,053 61.76%

Totals $12,228,426 $3,654,076 $11,895,585 97.28%

Total Revenue $12,448,061 $4,788,134 $12,453,002 100.04%

Total Expenditures $12,219,937 $3,654,076 $11,983,687 98.07% Balance $222,936 $1,134,057 $469,315

2012-13 Financial Highlights

❖ The 2012-13 full-time equivalency membership increased by twenty-two from 1,266 to

1,288 and the District’s three year rolling average remained the same at 1,272

❖ The District continues to work with 1st National Bank in Omro to utilize a line of credit for

use to cover expenses when cash flow is low while waiting for state aid and tax levy

payments. The result of the program has almost completely eliminated short-term

borrowing expenses ($154 expensed in 12-13)

❖ The District’s Athletic Director has established the Omro Athletic Foundation

❖ The year-end Fund 10 revenues exceeded expenses by $469,315

o 2012-13 Year-end Fund Balance projects to be 24.86% of Fund 10 expenditures

❖ To maintain and improve facilities and equipment the Board of Education utilized new fund

balance reporting requirements to authorize the use of fund balance for the purchases of the

following items:

o District Copying Machine

o District iPad Labs

o District tables and chairs

o Contribution towards the purchase of new band uniforms

o Elementary School Smartboards

o Football Field Lights

o Athletic field watering system

o Top dressing and fertilizing of all fields

o Field roller

o New tiling in PAC

o Snow removal equipment

o High school window blinds

o Replacement office carpet at Patch

o Replacement of maintenance shop overhead door

o Replacement of middle school and high school entry floor mats

o Replacement of high school gym bleacher heel boards

o Replacement of concession stand rolldown door

o Resurfacing of all parking lots

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o Total Investment- $199,053

2013-14 Budget Hearing

1. Summary of General Fund Budgets (Fund 10) 2. Summary of Special Education Fund Budgets (Fund 27) 3. Summary of Debt Service Fund Budgets (Fund 38, 39) 4. Summary of Food Service Fund Budgets (Fund 50) 5. Summary of OPEB Trust Fund (Fund 73) 6. Summary of Community Service Fund (Fund 80)

Summary of General Fund Budgets – Fund 10 The General Fund (Fund 10) is the operating fund of the school district. Activities relating to regular classroom

instruction, maintenance, utilities, insurance, and sports are recorded in this fund. The primary sources of revenue for

this fund are general state aid (equalization aid) and property taxes, both of which are limited by current state statute.

REVENUES

2012-13 Budget Projection

General Fund (Fund 10)

Revenues 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Tax Levy $ 3,812,238 $ 3,824,143 $ 11,905 0.31% Other Local Sources 120,400 118,300 (2,100) -1.74% Open Enrollment Tuition 570,000 457,000 (113,000) -19.82% Grants Through CESA 6 1,000 - (1,000) Transportation Aid 35,000 34,000 (1,000) -2.86% Library Aid 30,637 34,740 4,103 13.39% 2012-13 Adjustment Aid - 63,300 63,300 Equalization Aid 7,719,818 7,717,376 (2,442) -0.03% Other State Revenues 20,195 22,171 1,976 9.78% Federal Grants 150,765 168,440 17,675 11.72% ARRA Funds/Ed Jobs Funds 74,497 - (74,497) Misc Revenues 3,100 3,000 (100) -3.23%

Total Revenues $ 12,537,650 $ 12,442,470 $ (95,180) -0.76%

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EXPENDITURES 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Omro Elementary/Patch/4K 40,090 46,562 6,472 16.14% Payment to Partnerships 20,800 14,400 (6,400) -30.77% Elementary Library 20,499 20,499 - 0.00% Middle School 43,900 37,955 (5,945) -13.54% Middle School Sports 25,620 5,105 (20,515) -80.07% Instrumental Music 15,300 6,940 (8,360) -54.64% High School 73,417 67,261 (6,156) -8.38% High School Sports 53,000 60,000 7,000 13.21% Vocal Music 4,180 2,900 (1,280) -30.62% HS/MS Library 24,295 28,958 4,663 19.19% Expenses related to federal grants 150,765 168,440 17,675 11.72% Summer School 142,542 145,150 2,608 1.83% Salaries and Benefits 7,799,258 7,536,967 (262,291) -3.36% Purchased Services 679,234 776,198 96,964 14.28% Non-Capital Equipment 26,094 24,943 (1,151) -4.41% Capital Equipment 5,000 4,800 (200) -4.00% Short Term Interest 6,000 2,000 (4,000) -66.67% Insurance & Judgments 131,275 108,302 (22,973) -17.50% Technology 220,000 205,000 (15,000) -6.82% Pupil Transportation 760,000 752,400 (7,600) -1.00% Maintenance 207,065 160,000 (47,065) -22.73% Utilities 333,572 314,500 (19,072) -5.72% Curriculum 90,000 90,000 - 0.00% Safety/Nurse 3,798 8,650 4,852 127.75% Central Supply 41,000 41,000 - 0.00%

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Other Objects 16,000 14,500 (1,500) -9.38% Transfer to Special Ed 1,238,664 1,315,875 77,211 6.23% Transfer to Debt Service FUND 38 83,890 96,730 12,840 15.31% Transfer to Food Service - - - Transfer to Fund 73 170,000 160,000 (10,000) -5.88% ARRA Funds - - - Total Expenditures $ 12,425,258.00

12,216,034.14 $

(209,223.86) -1.68%

FUND 10 Revenues and Expenditures Comparison Total Revenues 12,537,650.00 12,442,470.24 (95,179.76) -0.76%

Total Expenditures 12,425,258.00 12,216,034.14 (209,223.86) -1.68% Balance - 226,436.10 226,436.10

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Summary of Special Education Fund Budgets – Fund 27

2012-13 Budget Projection

Special Education Fund (Fund

27)

Revenues 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Transfer From General Fund 1,238,664 1,315,875 77,211 6.23% Open Enrollment Tuition 38,000 25,780 (12,220) -32.16%

Transit of State Aid-CESA 40,459 34,000 (6,459) -15.96% Transit of State Aid-Other Districts 36,000 20,000 (16,000) -44.44%

Handicapped Aid 470,000 373,000 (97,000) -20.64% Flow Through and Early Childhood 282,798 245,843 (36,955) -13.07%

Medicaid Reimbursement 50,000 50,000 - 0.00% ARRA Funds - - -

Refund of Expenditures 1,000 - (1,000) -100.00%

Total Revenues $2,156,921 $2,064,498 ($92,423) -4.28%

REVENUES

EXPENDITURES

Expenditures 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Salaries and Benefits 1,386,577 1,442,926 56,349 4.06% Payments to Other Districts 185,000 155,000 (30,000) -16.22%

Payments to CESA 6 210,000 150,000 (60,000) -28.57% Transportation 290,000 230,000 (60,000) -20.69%

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Other Purchased Services 29,395 32,750 3,355 11.41% Non-Capital Objects 33,997 32,413 (1,584) -4.66% Capital Equipment 7,500 1,000 (6,500)

Dues and Fees 13,451 15,221 1,770 13.16%

Total Expenditures $2,155,920 $2,059,309.94 ($96,610) -4.48%

FUND 27 Special Education Revenues and Expenditures Comparison

Total Revenue $2,156,921 $2,059,310 ($97,611) -4.53%

Total Expenditures $2,155,920 $2,059,310 ($96,610) -4.48% Balance $0 $0 $0

Summary of Debt Service Fund Budgets – Funds 38-39

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The Debt Service Fund is used to track all activity regarding payment of long-term obligations of the school district.

Currently the funds are being used to record principal and interest payments for the Wisconsin Retirement Systems

Unfunded Pension Liability, and principal and interest payments on the District’s long-term general obligation building

bond debt.

2012-13 Budget Projection

Fund 38-39

2011-12 Audited 2012-13 Projected Difference % Change

Beginning Fund Balance $ 381,689 $ 463,354 $ 81,665 21.40%

Revenues Taxes 1,218,338 1,220,345 2,007 0.16% Interest 935 950 15 1.65% QZAB Grant 18,444 40,000 21,556 Transfer from General Fund 83,890 96,730 12,840 15.31%

Total Revenues 1,321,607 1,358,025 36,418 2.76%

Expenditures Principal Payments 955,000 1,030,000 75,000 7.85% Interest Payments 284,216 327,075 42,859 15.08% Service Fees 726 726 - 0.00%

Total Expenses 1,239,942 1,357,801 117,859 9.51%

Ending Fund Balance $ 463,354 $ 463,578 $ 224 0.05%

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Wisconsin Retirement System Unfunded Pension Liability

On July 1, 2008 the Board of Education refinanced the District’s Wisconsin Retirement System

Unfunded Pension Liability to take advantage of favorable interest rates. The coding for these notes

is done in Fund 38. This Fund is used to account for transactions for the repayment of debt issues

that were either: not authorized by school board resolution before August 12, 1993, or incurred

without referendum approval after that date.

Note Amortization Schedules – FUND 38

$1,085,000 Taxable

G.O. Promissor

y Note

s

Dated: July 1,

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2008 Callable: March 1, 2013

Date Principal Coupon Interest Total P+I Annual Total

9/1/2012 - 25,865.00 25,865.00 92,810.00 3/1/2013 45,000.00 5.40% 25,865.00 70,865.00 9/1/2013 - 24,650.00 24,650.00 95,515.00 3/1/2014 45,000.00 5.40% 24,650.00 69,650.00 9/1/2014 - 23,435.00 23,435.00 93,085.00 3/1/2015 50,000.00 5.40% 23,435.00 73,435.00 9/1/2015 - 22,085.00 22,085.00 95,520.00 3/1/2016 50,000.00 5.40% 22,085.00 72,085.00 9/1/2016 - 20,735.00 20,735.00 92,820.00 3/1/2017 55,000.00 5.40% 20,735.00 75,735.00 9/1/2017 - 19,250.00 19,250.00 94,985.00 3/1/2018 700,000.00 5.50% 19,250.00 719,250.00 -

Long-Term Obligation Debt In 1998 the School District passed a referendum to remodel H.B. Patch Elementary School, construct Omro Elementary

School and add on to the High School/Middle School building. The initial resolution authorized the School District to

issue $14,915,000 in general obligation bonds to finance the projects. The tables below show the current debt schedules

for the bonds. The original two issues were refinanced in March of 2004 and May of 2005

Bond Amortization Schedules – FUND 39

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INDEBTEDNESS OF THE DISTRICT

Direct Indebtedness

Set forth below is the direct indebtedness of the District, including principal and interest payments

due on existing debt, as well as debt service on the new issue for the referendum past in July 2011.

On August 1, 2011 the District was approved for a 2010 Qualified School Construction Bond that

was provided by the 2009 American Recovery and Reinvestment Act. The approved allocation is in

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the amount of $1,000,000 to cover all interest expense associated with this referendum borrowing.

With the issuance of the Notes, the District intends to apply for the direct payment interest credit

from the United States Treasury. Do to this direct credit the District will not apply the borrowing to

the tax levy in 2019 when the outstanding building bonds are no longer on the levy to minimize the

impact to tax payers.

FUND 39 FUND 39 FUND 39

Issue: 1 Issue: 2 Issue: 3

Amount: $7,640,000 Amount: $1,97

0,000 Amount: $1,000,000

Type: G.O. Refunding

Bonds (AR)

Type: G.O. Refunding

Bonds (AR)

Type: Tax G.O. Promi

ssory Notes (QSCB-DP)

Dated: March 15, 2004

Dated: May 15, 2005

Dated: September 15, 2011

Callable: '15-'18 callable 3/1/14 @ par

Callable: '16-'18 callable 3/1/15 @ par

Callable: Noncallable

Calendar PRINCIPAL RATE INTEREST

TOTAL PRINCIPAL RATE INTEREST T

OTAL

PRINCIPAL RATE INTEREST TOTAL

Year (3/1) (3/1 &

9/1) (3/1) (3/1 & 9/1) (3/1) (3/1 & 9/1)

2011 $915,000 2.95% $202,61

9 $1,1

17,619

$10,000 3.80% $77,033 $87,03

3

2012 $945,000 3.20% $174,00

3 $1,1

19,003

$10,000 3.80% $76,653 $86,65

3

$38,444 $38,444

2013 $975,000 3.25% $143,03

9 $1,1

18,039

$10,000 3.80% $76,273 $86,27

3

$40,000 $40,000

2014 $1,010,000 3.40% $110,02

5 $1,1

20,025

$10,000 3.80% $75,893 $85,89

3

$40,000 $40,000

2015 $1,045,000 3.50% $74,568 $1,1

19,568

$10,000 3.80% $75,513 $85,51

3

$40,000 $40,000

2016 $485,000 3.60% $47,550 $532

,550 $605,000 3.90% $63,525 $668,525

$40,000 $40,000

2017 $510,000 3.70% $29,385 $539

,385 $630,000 4.00% $39,128 $669,128

$40,000 $40,000

2018 $525,000 3.80% $9,975 $534

,975 $655,000 4.05% $13,264 $668,264

$40,000 $40,000

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2019 $1,000,000 4.00% $20,000 $1,020,000

$6,410,000 $791,16

3 $7,2

01,163

$1,940,000 $497,279 $2,437,279

$1,000,000 $298,444 $1,298,444

Credit: NR/ Insured Credit: NR/

Insured Credit: NR

Callable Maturities

Term Bond: 2006-2015

*Includes assumed direct payment interest credits from the United States Treasury in connection with the Notes.

Summary of Food Service Fund Budgets – Funds 50 All transactions related to the School District’s hot lunch and breakfast programs are recorded in this fund. This fund

may carry a fund balance. A deficit is not allowed in this fund, therefore, a transfer from the general fund is necessary

to erase any deficit that may be present at fiscal year end.

REVENUES – FUND 50

2012-13 Budget Projection

Food Service Fund 50

Revenues 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Transfer from General Fund - - $ - Pupil Sales 370,500 355,000 (15,500) -4.18% Adult Sales 1,550 1,500 (50) -3.23% Other Food Service Sales 1,900 1,900 - 0.00% State Food Service Aid 11,050 11,500 450 4.07% Donated Commodities 35,000 31,000 (4,000) -11.43% Federal Aid 195,650 220,000 24,350 12.45%

Totals $615,650 $620,900 $5,250 0.85%

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EXPENDITURES – FUND 50

Expenses 2011-12 Revised Budget 2012-13 DRAFT Difference % Change

Salaries and Benefits 263,740 263,124 $ (617) -0.23% Purchased Services 6,490 6,270 (220) -3.39% Supplies 15,000 15,000 - 0.00% Food 315,000 324,506 9,506 3.02% Non-Capital Equipment 1,500 500 (1,000) -66.67% Capital Equipment - 10,000 10,000 Dues and Fees 1,900 1,500 (400) -21.05%

Totals $603,630 $620,900 $17,270 2.86%

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FUND 50 Food Service Revenues and Expenditures Comparison

Total Revenue $615,650 $620,900 $5,250 0.85%

Total Expenditures $603,630 $620,900 $17,270 2.86% Balance $12,020 $0 ($12,020)

Summary of OPEB (Other Post Employment Benefits) Fund Budgets – Fund 73 The School District of Omro established Fund 73 for purpose of setting funds aside for future post employment benefit

liabilities. Post-employment benefits are benefits paid to employees after the retirement date, resulting from services

rendered during employment. Post employment benefits include pension and non-pension benefits such as health

benefits. The School District of Omro contributed $437,863 to the Trust in 2010-11 for the purpose of funding post employment

benefits for the fiscal year. This contribution met the required annual contribution enabling the District to apply for

categorical aid.

2011-12 Budget Projection

FUND 73

Revenues 2010-11 Revised Budget

2010-11 Audited

Final Numbers 2011-12

Proposed DRAFT Difference % Change

Transfer from General Fund

225,000

437,863

170,000

(55,000) -24.44%

Interest Earnings

500

71

100

(400) -80.00%

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Total Revenues

225,500 $437,934 $170,100 ($55,400) -24.57%

Expenditures 2010-11

Revised Budget 2010-11 Audited

Final Numbers 2011-12

Proposed DRAFT Difference % Change

Post Employment Benefits

225,750

416,367

170,500

(55,250) -24.47%

Total Expenditures $225,750 $416,367 $170,500 -$55,250 -24.47%

Total Revenue $225,500 $437,934 $170,100 ($55,400) -24.57%

Total Expenditures $225,750 $416,367 $170,500 ($55,250) -24.47% Balance ($250) $21,567 ($400) ($150) 60.00%

Summary of Community Service Fund Budgets – Fund 80 This fund is used to account for activities such as adult education, community recreation, elderly food service programs,

non-special education pre-school, day care services, and other programs which are not educational programs but have

the primary function of serving the community.

2011-12 Budget

Projection

Fund 80

Revenues 2010-11 Revised Budget

2010-11 Audited

Final Numbers 2011-12

Proposed DRAFT Difference %

Change

Rental Income

- 1,115 -

- Fees

- 949 -

- Total Revenues

- 2,064 -

-

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Expenditures 2010-11 Revised Budget

2010-11 Audited

Final Numbers 2011-12

Proposed DRAFT Difference %

Change

Expenses

- 1,378 -

- -

Total Expenditures

- 1,378 -

-

-

Total Revenue

- 2,064 -

- Total Expenditures

- 1,378 -

-

- Balance

- 685 -

-

District Overview and Summary Section Part II

1. 2013-14 Budget Summary/Overview 2. Listing of School Board Members and Administrators

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Summary of the 2013-14 Budget

Revenue Highlights

✓ State Aide is expected to decrease by 0.03% or $2,442 for the 2012-13 school year

✓ The 2012-13 Tax Levy for general operations is currently projected to increase by 0.31% or

$11,905

✓ The total Tax Levy for 2012-13 is currently projected to increase by 0.28% or $13,912

✓ The District will no longer receive additional aid from the federal government via the

ARRA or Ed Jobs programs. These programs have expired and the District utilized them to

the maximum.

Expenditure Highlights

✓ Building budgets remain the same with new allocations of those funds to different areas of

the buildings based on need

✓ Library budgets will remain under budget until January when Common School Library

Funds allocated to the District are known, at which time a budget adjustment for revenues

and expenses will be made

✓ The Middle School Sports, Band, Choir, Technology, and Maintenance budgets are all

reduced due to the removal of one-time funds allocated by the Board of Education to these

areas for projects during the 2011-12 fiscal year

✓ Utilities budget decreases by $19,072 due to increased internal controls

✓ The District switched health insurance companies from WEA to WCA decreasing rates

beneath current by 1% from September 1, 2012 to December 31, 2013. The agreement also

includes a second year rate cap of 8%.

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District Administration

School Board

Peter Kromm Cheryl Potratz Robert Kettlewell President Vice President Treasurer Serving Since 1997 Serving Since 2005 Serving Since 2007

Tricia Retzlaff Kyle Miller Sandy Markech Clerk Serving Since 2007 Serving since 2012 Serving Since 2010

Jamie Salzwedel Serving since 2011

Executive Committee

Nick Curran Superintendent of Business Operations

Kelly Spors High School Principal

Paul Williams Middle School Principal

David Wellhoefer

Elementary Principal

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Administrators

Jaime Glaeser School Psychologist

Nate Lee Director of Buildings and Grounds

Rose Ann Boushele Director of Food Service

Danielle Brauer Director of Pupil Services and Curriculum

Jeffrey Ruedinger Director of Technology

Nancy Stoflet Administrative Secretary

Organizational Section

Part III

1. School District 2. Basis of Accounting 3. The Classification of Revenues and Expenditures 4. Budgetary and Financial Laws and Policies 5. Organizational Chart 6. The Budget Development Process 7. The Budget Administration and Management Process

School District Legal Status

The legal basis for public education in the School District is vested in the will of the people as expressed in the

Wisconsin Constitution. Public Education is primarily a State responsibility and a local School District’s function. The official name of this District is the “School District of Omro”. The District shall be a common school district

providing 4-year-old Kindergarten through twelfth grade educational services to students living in the City of Omro,

along with all or parts of the townships of Algoma, Nekimi, Nepeuskun, Omro, Poygan, Rushford, Utica and

Winneconne in the County of Winnebago, and the townships of Aurora and Poy Sippi in the County of Waushara. The District currently serves 1,295 students through H.B. Patch Elementary School, Omro Elementary School, the

Omro High School/Middle School, and A Moment in Time Daycare.

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The District shall be under the management and control of an elected School Board, which will act as an agent of the

State and govern the public schools in accordance with state law.

Basis of Accounting

The basis of accounting refers to the timing of when revenues, expenditures, and the related assets and liabilities are

recognized on the books of the School District. School districts in Wisconsin use the Modified Accrual Basis of accounting for all governmental, expendable and

agency funds. Under this basis of accounting revenues are recognized when measurable and available and expenditures

or expenses are recognized when the related fund liability is incurred.

The Classification of Revenues and Expenses

Each account code that we use is made up of at least 14 digits and many times 17 digits. The first two digits of the code

indicate the fund from which the expenditure is being made or revenue is being received. The next three digits indicate

the location, i.e. high school, middle school, etc. The next three digits indicate the object for an expenditure or the

source for a revenue. The next six digits indicate the function code and the last three digits are the project code. Example of an expenditure account:

10 - 800 - 411 - 110000 - 057 Fund Location Object Function Project

Example of a revenue account:

10 - 800 - 611 - 500000 - 000 Fund Location Source Function Project

Definitions of Account Codes

Funds

A fund is an accounting entity consisting of a set of self-balancing set of asset, liability and equity accounts used to

account for the District’s financial transactions in accordance with laws, regulations, or restrictions. The Department of

Public Instruction requires reporting of various revenues and expenditures within specified funds. The different funds

that the district uses and their definitions follow:

10-General Operations: This is the operating fund of the District. All expenses relating to the operation of

the District not required to be reported in the other funds are reported here. 21-Special Revenue Trust Fund: All gifts and donations from private parties and their related expenses are

recorded in this fund. 27-Special Education Fund. All special education transactions are recorded in this fund including salaries

and benefits for special education teachers. 38-Non-Referendum Debt Fund. Transactions relating to debt incurred without the approval of a referendum

are recorded here. The School District of Omro currently uses this fund to record transactions relating to the

refinancing of the Wisconsin Retirement System Unfunded Pension Liability. 39-Referendum Approved Debt Fund. This fund is used to record transactions relating to debt incurred

through a referendum. This usually involves bond issues for capital improvements and/or expansion. The

School District of Omro uses this fund to record payments for long-term general obligation debt.

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50-Food Service Fund. All expenses and revenues related to the lunch program are recorded in this fund.

60-Agency Fund. This fund is used to account for assets held by pupil organizations. All student clubs and

activity accounts are accounted for here. 70-Trust Funds. This fund is used to account for assets held by the district in a trustee capacity for

individuals, private organizations, other governments and/or other funds. 80-Community Service Fund. This fund is used to account for activities such as adult education, community

recreation programs, elderly food service programs, non-special education preschool, day care services, and

other programs which are not elementary and secondary educational programs but have the primary function of

serving the community.

Locations

Location codes are used to categorize primarily expenditures and some revenues within a fund by department or

building. The location codes are: 100-Elementary/OES 101-Patch 102-Reading 104-Elementary Library 106-4K 200-Middle School 300-Enterprise School 400-High School 401-High School Tech 710-Summer School 800-District Wide 801-MS/HS Library 802-Instrumental Music 803-Vocal Music 804-Health 805-Technology 806-Transportation 807-ELL Budget 825-Maintenance 826-Special Maintenance Projects 827-Utilities 829-Nurse 845-Driver’s Ed 846-Safety 860-High School Sports 861-Middle School Sports 870-Central Supply 878-RIF

Objects Object codes are used to classify expenditures within a fund and within a location. Object codes describe what an

expenditure was. 100-Salaries 200-Benefits

300-Purchased services-services performed by others outside of the district

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400-Non-Capital Equipment-supplies, and equipment under $500 500-Capital Equipment-any equipment, furniture, vehicles etc. over $500 600-Debt Retirement-principal and interest payments 700-Insurance-Work Comp, Liability, Property, Unemployment 800-Transfers to other funds 900-Other-Dues and fees mainly go here

Functions Function codes classify expenditures and revenues according to the what the object being purchased is used for. 110000-Elementary Education 120000-Secondary Education 130000-Vocational Education 140000-Physical Education 150000-Special Education 160000-Co-Curricular Education/Sports 170000-Other Special Needs 200000-Support Services 220000-Instructional Staff Services 230000-General Administration 240000-Building Administration/Principals 250000-Business Administration-this includes transportation and maintenance 260000-Central services 270000-Insurance 280000-Debt 290000-Other support services 300000-Community Services 400000-Non program transactions, includes transfers to other funds

500000-District wide – revenues only

Sources

Source codes are used to classify revenues according to where the money is coming from. 100-Transfer in from another fund 200-Local Sources 300-Payments from another school district 400-Payments from agencies outside the state 500-Payments from the state or federal transited through CESA 6 600-Revenue received directly from the State 700-Revenue received directly from the Federal Government 800-Proceeds from refinancing and long term debt transactions 900-Other sources Project codes are more numerous and more specific ways of identifying revenues and expenditures. These are too

numerous to list. One major use of these codes is to be able to identify the expenditures of individual teachers.

Budgetary and Financial Laws and Policies

State of Wisconsin Statues Governing School District Finances 120.12(3) & (4)-Tax Levy Requires school boards to determine, by November 1, taxes necessary for the operation and maintenance of the district

and debt retirement. This amount may be greater or less than the amount voted on by the electors at the annual meeting.

It also requires the district clerk to certify the tax amount to local municipalities on or before November 6.

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121.90, 121.905, 121.91 and 121.92-Revenue Limit Prohibits school districts from annually increasing revenues derived from general school aid (Equalization Aid) and

property taxes above a specified limit. The limit is determined by taking the prior year’s revenue per pupil average plus

a per pupil increase determined by the legislature based on the Consumer Price Index for inflation and multiplying by a

three-year rolling enrollment average.

School District of Omro Fund Balance Policy

The Board of Education recognizes the need for carrying an operating reserve in the general fund to:

1. Provide adequate working capital sufficient to meet the District’s cash flow requirements, thus minimizing

additional cash flow (short-term) borrowing during the budget cycle. 2. Function as a safeguard to fund unanticipated expenses that the District might incur or to fund unrealized

revenues, which may occur but shall not be considered available to meet recurring operational expenses. 3. Demonstrate fiscal responsibility resulting in a high credit rating, which will help to reduce District’s

borrowing costs. The Board of Education will strive to develop operating budgets, which will add sufficient

funds each year to the operating fund balance to maintain fourteen percent (14%) of total operating expenses.

The Budget Administration and Management Process

Management of the budget is the primary responsibility of the District’s Superintendent of Business Operations. The

Superintendent of Business Operations gives a detailed report to the Board of Education each month summarizing the

previous month’s revenues and expenditures. The Superintendent of Business Operations also works with building

principals in monitoring each building’s budget. The budget performance is reviewed on a quarterly basis and

adjustments are recommended to the Board each quarter as needed.

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Budget Calendar For Development of 2013-14 Budget

Deadline Action Responsible Persons

November 2012: Review performance of current budget Admin Team Develop budget data collection forms Business Manager December 2012: Adopt Budget Calendar School Board

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Begin process for requesting textbooks, Admin Team supplies, equipment, and standard supply and equipment lists Begin discussions of staffing needs for Admin Team next year

Determine needs for alterations and District Admin improvements to buildings and grounds Director of Buildings January 2013: Discussions with principals, supervisors, District Admin and other staff regarding the education program and personnel needs Review enrollment data to project Admin Team ensuing year enrollments School Board February 2013: Review budget implications from School Board strategic plan as adopted by the School Board Deadline for submitting budget requests Teachers, Admin Team Approve staffing recommendations School Board March 2013: Review performance of current budget Admin Team Compile and summarize budget requests Admin Team and financial implications Conduct budget workshops with Admin Team administrators to resolve budget request conflicts, establish budget priorities, and make alterations April-May 2013: Initial budget presentation to school board Business Manager Additional budget workshops scheduled if District Admin necessary July 2013: Continue revisions of estimates Business Manager

September 2013: Adjust budget after third Friday count Business Manager October 2013: Prepare official budget document Business Manager Budget Hearing

Final calculation of revenue limit after Business Manager receipt of certified aid from DPI on October 15 and make other budget adjustments as necessary Adopt final tax levy School Board

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Informational Section

Part IV

1. Fall School District Certification Values - Tax Apportionment 2. Tax Levy Rate Information and 10 & 24-year history 3. Equalization Aid Information 4. Analysis of Tax Burden 5. Long-Term Obligation Debt

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Spring School District of Certification of 2012 Values – Tax Apportionment

The values below, are adjusted for any reorganization orders effective July 1, 2012, and were used

in the July estimate of school district equalization aid eligibility. When the new values for

reorganization orders effective July 1, 2012 are released the District’s certification will be adjusted.

County Municipality TIDIN TIDOUT Computer

Equalized Equalized Aid

Values Values Value

Waushara T. Aurora 68,845 68,845 0 Waushara T. Poy Sippi 640,554 640,554 0 Winnebago C. Omro 181,370,800 165,640,000 376,277 Winnebago T. Algoma 4,005,485 4,005,485 0 Winnebago T. Nekimi 434,040 434,040 0 Winnebago T. Nepeuskun 6,183,252 6,183,252 0 Winnebago T. Omro 178,288,282 178,288,282 31,300 Winnebago T. Poygan 40,271,835 40,271,835 500 Winnebago T. Rushford 87,518,577 87,518,577 6,300 Winnebago T. Utica 24,289,438 24,289,438 15,100 Winnebago T. Winneconne 13,123,305 13,123,305 4,500 Total: 536,194,413.00 520,463,613.00 433,977.00

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Tax Levy Rate Information and 25-year history for the School District of Omro

School district property taxes include levies for general operations, debt service, capital expansion, and community

services. Property values are equalized to reflect market value rather than local assessed value. The equalized levy rate

(Mill Rate) is the total property tax levy divided by the current year equalized property value with tax incremental

financing (TIF) values excluded. Levy rates are shown in "mills" or property tax dollars levied per $1,000 of equalized

property value.

School District of Omro 25-year tax levy rate average = $13.02

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Equalization Aid Information

In 1993 the Wisconsin Legislature enacted Act 16, which placed public school districts throughout Wisconsin under

revenue limits. This act limited revenue school districts could receive from local property taxes, general state aid

(equalization aid) and exempt computer property aid. The maximum limit is based on enrollment times a per-pupil

increase that is based on the Consumer Price Index. School districts may exceed this limit only through referendum. The table and graphs below show the history of the district’s revenue limit and the proportion of property taxes and

general aid that comprised each limit. General state aid is based on a school district’s shared cost, which is the net cost

of the general fund and debt service fund after certain deductible receipts have been excluded. The property tax levy is

computed by first calculating the revenue limit then subtracting the amount of general state aid. The remainder is the

tax levy. The amount of equalization aid a school district receives is dependent primarily upon the district’s equalized property

valuation and shared costs. There is an inverse relationship between a district’s equalized valuation and the amount of

aid it receives from the state. As the valuation increases, a district’s state general aid decreases and vice versa. There is

a direct relationship between a district’s shared cost and the amount of aid it receives. As the shared costs increase so

does the aid it receives from the state.

Analysis of Tax Burden

2012-13 Budget Projection

2010-11 Audited 2011-12 Projected Difference % Change

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General Fund Tax Levy $ 3,705,251 $ 3,826,123 $ 120,872 3.26% Debt Service Fund Tax Levy $ 1,218,338 $ 1,220,965 $ 2,628 0.22% Community Service Fund Tax Levy $ - $ - $ - NA Total Levy $ 4,923,588.50 $ 5,047,088.00 $ 123,499.50 2.51% Mill Rate $ 9.40 $ 9.63 $ 0.23 2.45% School Property tax on a $100,000 Home $ 940.00 $ 963.00 $ 23.00 2.45%

Annual Meeting Resolutions

RESOLUTION #1 – ADOPTION OF TAX LEVY

Resolved, that this annual meeting establish a tax levy of $3,925,667 for the current

operation of the school district and levy for debt retirement of $1,220,345.

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Moved by

Second by

Approved

Rejected

RESOLUTION #2 – SALARY – BOARD OF EDUCATION

The present salary for the Board of Education positions is $2,000 annually. Board members

devote many hours to meetings, not counting the hours spent in preparation.

Resolved that the salary for Board of Education positions be established at $

Moved by

Second by

Approved

Rejected

RESOLUTION #3 – DISPOSAL OF SURPLUS EQUIPMENT

From time to time the school district has equipment items that should be sold as new and

updated items are added to the inventory, such as typewriters, sewing machines, etc.,

and,

Therefore, be it resolved that the School Board be authorized to sell equipment no longer

needed by the school district.

Moved by

Second by

Approved

Rejected

RESOLUTION #4 – OFFICIAL DEPOSITORY

Resolved that the First National Bank be designated as the official depository of School

District funds.

Moved by

Second by

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Approved

Rejected

RESOLUTION #5 – 2014 ANNUAL MEETING

Resolved that the 2014 Annual Meeting of the School District of Omro be Thursday,

October 4, 2014 at 6:00 p.m.

Moved by

Second by

Approved

Rejected

ADDITIONAL RESOLUTIONS FROM THE FLOOR

Moved by

Second by

Approved

Rejected

Adjournment

Moved by

Second by