· Comprehensive
ANNUAL FINANCIAL
REPORT
For the Fiscal Year Ended June 30, 2014
INDEPENDENT SCHOOL DISTRICT 196
Rosemount-Apple Valley-Eagan Public Schools
Rosemount, Minnesota
Educating our students to reach their full potential
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2014
INDEPENDENT SCHOOL DISTRICT NO. 196
ROSEMOUNT, MINNESOTA
3455 – 153rd Street West
Rosemount, MN 55068-4199
Prepared by
Finance Department
Jeffrey M. Solomon  Director of Finance and Operations
Stella Y. Johnson  Coordinator of Finance
Joseph Bertram  Controller
Joyce Peterson  Payroll Supervisor
Desiree Fleming  Financial Systems Supervisor
INDEPENDENT SCHOOL DISTRICT NO. 196
Table of Contents
Page
SECTION I – INTRODUCTORY SECTION
Letter of Transmittal
Organizational Chart
School Board and Superintendent’s Cabinet
Map of School District
ASBO Certificate of Excellence
i–ix
xi
xii
xiii
xiv
SECTION II – FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS
5–24
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Reconciliation of the Balance Sheet to the Statement of Net Position
Statement of Revenue, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of Revenue, Expenditures, and Changes in
Fund Balances to the Statement of Activities
Statement of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual – General Fund
Internal Service Funds
Statement of Net Position
Statement of Revenue, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
Fiduciary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
Notes to Basic Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Independent School District No. 196 Other Post-Employment Benefits Plan
Schedule of Funding Progress
SUPPLEMENTAL INFORMATION
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
25
26
27
28–29
31
32–33
35
37
38
39
41
42
42
43–67
69
70
71
72
73
INDEPENDENT SCHOOL DISTRICT NO. 196
Table of Contents (continued)
Page
SUPPLEMENTAL INFORMATION (CONTINUED)
General Fund
Comparative Balance Sheet
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Operating Account
Pupil Transportation Account
Capital Expenditure Account
Schedule of Special Education Revenue and Expenditures –
Budget and Actual
Food Service Special Revenue Fund
Comparative Balance Sheet
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Community Service Special Revenue Fund
Comparative Balance Sheet
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Capital Projects – Building Construction Fund
Comparative Balance Sheet
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Debt Service Fund
Balance Sheet by Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
General Account
Other Post-Employment Benefits Account
Internal Service Funds
Combining Statement of Net Position
Combining Statement of Revenue, Expenses, and Changes in Fund Net Position
Combining Statement of Cash Flows
Agency Funds
Combining Statement of Assets and Liabilities
Combining Statement of Changes in Assets and Liabilities
74
75–77
79–81
83–85
87
88–89
91
92
93
94
95
96
97
98
99
100
101
102
103
105
106
107
INDEPENDENT SCHOOL DISTRICT NO. 196
Table of Contents (continued)
Page
SECTION III – STATISTICAL SECTION
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Governmental Activities Tax Revenues by Source and Levy Type
General Governmental Tax Revenues by Source and Levy Type
Tax Capacity and Estimated Market Value of Property
Property Tax Rates – Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levies and Collections
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Debt
Legal Debt Margin Information
Demographic and Economic Statistics
Principal Employers by Major Municipalities in the District
Employees by Classification
Operating Indicators – Standardized Testing and Graduation Rates
Capital Asset Statistics by Program and Classification
Expenditures per Student (Average Daily Membership)
Food Service – School Lunch Program Data
School Facilities
Building Permits Issued by Major Cities
Students – Average Daily Membership (ADM)
109
110–111
112–113
114–115
116–117
118
119
120–121
122–125
126
127
128–129
130
131
132–133
135
136–137
138–139
140–141
142–143
144–145
146–147
148–149
150
151
SECTION I .
Introduction
October 27, 2014
To the School Board, citizens, and employees of
Independent School District No. 196
INTRODUCTION
We are submitting the comprehensive annual financial report (CAFR) of Independent School District
No. 196, Rosemount – Apple Valley – Eagan (the District) for the fiscal year ended June 30, 2014. This
report fairly presents the District’s financial position and results of operations and cash flows in
accordance with accounting principles generally accepted in the United States of America. The District’s
administration accepts total responsibility for the accuracy, completeness, and fairness in presentation.
The District’s financial statements have been audited by Malloy, Montague, Karnowski, Radosevich &
Co., P.A., a firm of licensed certified public accountants. The goal of the independent audit was to
provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30,
2014, are free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor concluded, based upon the audit, that there was a
reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal
year ended June 30, 2014, are fairly presented in conformity with accounting principles generally
accepted in the United States of America. The independent auditor’s report is presented as the first
component of the financial section of this report.
In addition to the independent audit of the District’s financial statements, the District is required to
undergo an annual Single Audit in conformity with the provisions of the Federal Single Audit Act
Amendments of 1996 and the U.S. Office of Management and Budget’s Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. The District is also required to undergo an annual
Minnesota State legal compliance audit under Minnesota Statute § 6.65. The standards governing Single
Audit engagements require the independent auditor to report on not only the fair presentation of the
financial statements, but also the District’s internal controls and compliance with legal requirements, with
special emphasis on internal controls and legal requirements involving the administration of federal
awards. These reports are available in the District’s separately issued “Special Purpose Audit Reports.”
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements in
the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found
immediately following the report of the independent auditors.
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REPORT FORMAT
The CAFR is presented in three sections:

Introductory Section – The introductory section contains this transmittal letter, an organizational
chart, a list of School Board members and the Superintendent’s Cabinet members, a map of the
District, and a copy of the Association of School Business Officials (ASBO) International
Certificate of Excellence in Financial Reporting for the District’s 2012–2013 CAFR.

Financial Section – The financial section begins with the independent auditor’s report. This
section includes the MD&A; basic financial statements; required supplementary information; and
combining and individual fund statements and schedules presented as supplemental information.

Statistical Section – The statistical section, which is not audited, includes selected financial,
demographic, and economic data, generally presented on a multi-year comparative basis.
REPORTING ENTITY AND ITS SERVICES
The financial reporting entity includes all the funds of the primary government (the District). Component
units are legally separate entities for which the District (primary government) is financially accountable.
There are no organizations considered to be component units of the District.
The District was incorporated in 1950 and serves a portion of 10 suburban communities within
Dakota County located on the southeastern edge of the Minneapolis/St. Paul metropolitan area. The
District encompasses all or part of the communities of Apple Valley, Burnsville, Coates, Eagan,
Empire Township, Farmington, Inver Grove Heights, Lakeville, Rosemount, and Vermillion Township.
Programs and Services
The District provides a full range of public education services appropriate to grade levels ranging from
pre-kindergarten through Grade 12. These include regular and enriched academic education, special
education for exceptional children, and career/vocational education. Food service and transportation are
provided as supporting programs. The District’s community education program includes early childhood
family education and adult basic education programs, and a myriad of classes for lifelong learning
experiences for children and adults.
Student Enrollment
The District enrolled 27,202 students (or average daily membership totaling 26,921.27) in 2013–2014
from a population of 156,879 people residing in a 108.6 square mile area. In terms of the number of
students, the District is Minnesota’s fourth largest school district.
The District has an increasingly diverse population of students with a variety of needs. For the
2013–2014 school year, close to 70 percent of our students were white, 12 percent of the District’s
student population were black, students of Asian descent comprised 9 percent, Hispanic students totaled
8 percent, and 1 percent were American Indian.
In 2013–2014, 15.3 percent of our students qualified to receive special education services; this compared
to a 2012–2013 Minnesota average of 14.9 percent.
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Five-Year Enrollment Projections
The District’s enrollment is projected to remain stable over the next five years, declining by an average of
less than 0.2 percent per year.
5-Year Enrollment Projections
30,000
27,228
27,203
27,202
27,215
27,046
28,000
26,000
24,000
22,000
20,000
2014–2015 2015–2016 2016–2017 2017–2018 2018–2019
District Schools and Facilities
During the 2013–2014 school year, the District operated 34 school buildings: 4 comprehensive
(Grades 9–12) high schools, 1 optional (Grades 11–12) high school, 6 middle schools (Grades 6–8),
18 elementary schools (kindergarten through Grade 5), 1 area learning center, 1 school (kindergarten
through Grade 12) for students with special needs, 1 early childhood learning center for early childhood
family education and early childhood special education students, and 2 learning centers dedicated to adult
basic education and early childhood family education students.
The average age of the District’s facilities is over 29 years; the District qualifies for Alternative Facilities
funding and has been able to keep up with routine repairs, maintenance, and other major improvements.
LOCAL ECONOMIC CONDITION AND OUTLOOK
The state of Minnesota’s economy continues to show signs of recovery, though more moderate and
slower than expected. Manufacturing activity continues to exhibit momentum and business spending for
operational improvements seems to be improving.
The recent economic conditions have resulted in challenges for many Dakota County residents. Between
2002 and 2013, the unemployment rate in Dakota County has generally increased, but has improved in the
last two years. At the end of 2013, Dakota County’s unemployment rate was 4.7 percent, the state’s
unemployment rate was 5.4 percent, and the national unemployment rate was 6.8 percent. We remain
optimistic about the future of Dakota County and the District.
Dakota County residents are well-educated. Information from calendar year 2011 shows that 95.1 percent
of residents over the age of 25 had a high school diploma and 38.5 percent had a Bachelor’s or advanced
degree. The state numbers were 92 percent (high school diploma or higher) and 32.3 percent (bachelor’s
or advance degree).
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Annual average wages in Dakota County have risen from $33,456 in 2000 to $49,847 in 2012. The
median household income for Dakota County in 2011 was $69,902 compared to the state of Minnesota’s
median income of $56,954.
Poverty rates among Dakota County families remain below state and national averages. Dakota County
was the only county among the seven metropolitan-area counties that did not experience an increase in the
poverty rate between 2010 and 2011. Dakota County’s poverty rate decreased from 7.1 percent to
6.9 percent in this period. The state and national poverty rate are 11.9 percent and 15.1 percent,
respectively.
Dakota County is considered to have an economically healthy mix of industry types. Fifty-one percent of
the total workforce in Dakota County was employed in retail trade, manufacturing, healthcare and social
assistance, educational services, and accommodation and food services. The Minnesota Department of
Employment and Economic Development projects that healthcare and social assistance fields will have
the highest growth rate in the next several years, a direct result of the rapidly aging population.
Due to the underlying strength of the seven-county metropolitan area’s economy, the county’s diversified
tax and employment bases, its prime location, strong support for education from residents, and the
District’s reputation for providing quality education and educating students to reach their full potential,
the administration believes that the future for the District will continue to be bright in spite of the
challenges. Resident support is evident from the results of a survey conducted by the District in July 2013
which shows that 91 percent of the respondents approved and support the District and gave the District a
rating of excellent or good, which is in the top 10 percent of school districts in the metro area.
DISTRICT MISSION AND STRATEGIC PLAN
In spring 2011, the District convened a 60-member task force to develop a vision for education that will
guide district goals for the next five years. The task forces included parents, staff, School Board members,
and a variety of leaders from the business, civic, and faith communities. Task force members attended
four informational meetings to establish a shared base of knowledge about district enrollment and
demographics, school finance, teaching and learning, community and partnerships, educational trends,
and innovation. These informational meetings, led by a facilitator, were followed by four planning
meetings where the task force members developed revised belief statements for the District and four
strategies for the future. The School Board approved the plan in December 2011. A brief summary of the
plan is listed below.
Mission Statement:
Educating our students to reach their full potential.
Belief Statements:
 Students come first
 All students can learn
 High expectations inspire students and staff to excel
 Learning is maximized in a safe, respectful, and inclusive environment
 A well-rounded education includes opportunities in academics, the arts, and athletics
 Learning is a lifelong pursuit
 Effective management of resources is critical
 Partnerships and collaboration enhance educational programming
 A culture of innovation and continuous improvement prepares students to be college and/or
career ready
 An informed and engaged community guides effective decision-making
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Strategies and Goals:
 Strategy One – Teaching and Learning
o Deliver a high-quality instructional program that anticipates and meets the needs of all
learners
 Strategy Two – Early Learning
o Provide a well-aligned continuum of high-quality, culturally responsive, early learning
(birth to Grade 3) services to meet the needs of all students
 Strategy Three – Educational Equity
o Implement a systemic process that increases achievement for all students by addressing
equitable access to opportunities in our schools and programs
 Strategy Four – Partnerships
o Develop and implement sustainable strategies to increase collaboration between the
District and community partners
STUDENT ASSESSMENT AND TESTING
The District uses a variety of state and national tests to measure student achievement, determine student
ability, and evaluate curriculum.
Minnesota Comprehensive Assessments (MCAs)
According to the results of the Minnesota Comprehensive Assessments (MCAs) released by the
Minnesota Department of Education in August 2014, the percentage of the District’s students who scored
proficient on the state reading, math, and science tests exceeded the state-wide averages for all grades
tested in the spring of 2014.
The MCAs are given annually in reading (Grades 3–8 and 10), math (Grades 3–8 and 11), and science
(Grades 5, 8, and high schools, after completion of the life science curriculum). More than 13,000 district
students took the MCAs test last spring.
The MCAs measure student performance on the Minnesota Academic Standards, which define what
students should know and be able to do in a particular grade. Students earn a score that falls into one of
four achievement levels: 1) does not meet the standards; 2) partially meets the standards; 3) meets the
standards, and 4) exceeds the standards. Students who meet or exceed the standards are considered to be
proficient in the subject areas.
American College Test (ACT)
In 2013–2014, the District’s high school students continued to score well above state and national average
composite scores on the American College Test (ACT) college-entrance exam.
The ACT average composite score for the District’s students in 2014 was 24.1 points. The District’s
average was 1.2 points higher than the state average of 22.9 points. ACT scores range from 1 to 36. For
the ninth consecutive year, Minnesota had the highest average score among states where more than half of
all graduates took the test state-wide. The national average composite score was 21.0 points. The ACT is
the primary admissions test for students attending college in the Midwest; the SAT is the primary test for
colleges located in the eastern and western states.
The District’s ACT average composite score is based on the results of 1,671 students who took the test,
which represents nearly 76 percent of the graduating class of 2014; approximately the same percentage
took the test state-wide.
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Advanced Placement (AP)
In 2013–2014, 667 of the District’s high school students were recognized as AP Scholars by the College
Board for earning a score of 3 or higher (on a scale of 1 to 5) on at least 3 or more exams. An AP exam
score of 3 or higher earns credit at many of the nation’s colleges and universities.
College in the Schools Program
During the 2013–2014 school year, district high school students who participated in the College in the
Schools (CIS) program earned a combined 5,432 college credits valued at more than $2.50 million
according to a value statement released by the University of Minnesota’s CIS program.
CIS is a program where students can earn college credits taking advanced courses at their high school that
are taught by their high school teachers. There were 1,276 CIS student registrations from the 5 district
high schools during the 2013–2014 school year.
National Merit Scholars
In 2013–2014, 15 of the District’s high school seniors were named National Merit Scholarship finalists
(top 1 percent of seniors nation-wide), and another 29 students were named commended students
(top 5 percent).
ACHIEVEMENTS AND AWARDS
National Achievement Awards in Writing
In 2013–2014, four of five Minnesota students selected to receive the National Achievement Awards in
Writing competition sponsored by the National Council of Teachers of English were students from the
District.
Magnet School of Distinction Award
In 2013–2014, all three elementary magnet schools (Cedar Park Elementary Science, Technology,
Engineering and Math (STEM) School; Diamond Path Elementary School of International Studies; and
Glacier Hills Elementary School of Arts and Science) were recognized as schools of distinction by
Magnet Schools of America.
In 2013–2014, Eagan High School was 1 of 10 in the nation to receive the School of Outstanding
Distinction in speech and debate, and Apple Valley High School was 1 of 21 in the nation to receive the
Speech School of Excellence award.
FINANCIAL AND BUDGETARY CONTROL
The management of the District is responsible for establishing and maintaining internal controls designed
to ensure that the assets of the District are protected from theft, misuse, or losses and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America and Minnesota Uniform
Financial Accounting and Reporting Standards.
The internal control system is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should
not exceed the benefits likely to be derived, and 2) the valuation of the costs and benefits requires
estimates and judgments by management.
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In addition, the District has also adopted the following policies to ensure compliance with legal
provisions embodied in the annual appropriated budget approved by the School Board:

Fund Balance Policy – Requires the District to maintain an operating fund balance of 5 percent
of the expenditure budget.

Budget Policy – Establishes a guideline for allocation of district resources.

Personnel Staffing Guidelines – Personnel costs represent close to 84 percent of General Fund
expenditures. These guidelines, which set the staffing allocation for every allocated position in
the District, are updated each February by the administration and the School Board.
The District’s budget process is based, first, on development of a budget projection model that attempts to
project resources and expenses over a multiple year period. The budget projection is used by the School
Board and the administration to determine budget parameters and staffing guidelines. Second, the budget
adopted in June is based upon the personnel staffing guidelines approved by the School Board and
preparation of the non-personnel budget by school and department administrators, in accordance with
School Board-approved budget parameters. The School Board resolution adopting the budget in June also
includes a provision directing the administration to update the budget in October. This final budget
reflects the District’s actual enrollment count on October 1, the actual staff hired, and other dynamics
such as employee contract settlements.
The level of budgetary control is at the fund level. However, in the General Fund; operating, special
education, pupil transportation, capital expenditure, and quality compensation are maintained as separate
internal accounts for budgeting purposes. The District also maintains an encumbrance accounting system
as one method of maintaining budgetary control. Encumbered amounts lapse at year-end. However,
outstanding encumbrances generally are re-appropriated as part of the following year’s budget.
As demonstrated by the statements and schedules included in the financial section of this report, the
District continues to meet its responsibility for sound financial management.
CERTIFICATE OF EXCELLENCE
This report will be submitted to the Association of School Business Officials (ASBO) International for
consideration for the Certificate of Excellence in Financial Reporting.
The District received the Certificate of Excellence in Financial Reporting from ASBO International for
excellence in the preparation and issuance of the District’s CAFR for the year ended June 30, 2013. It is
the 12th consecutive year the District has received the award, which was earned by fewer than 5 percent
of all school districts in the state.
The District expects to continue to earn the recognition that accompanies national standards of accuracy
and thoroughness of the Certificate of Excellence program.
FINANCIAL PROSPECTS FOR FUTURE YEARS
With the exception of the voter-approved excess operating referendum and building bond referendum, the
District is dependent on the state of Minnesota for its revenue authority.
Over the past decade state funding for education has not kept pace with inflation. Increases to the basic
general education formula allowance for the past six years were 5 percent; less than a 1 percent increase
per year and significantly less than inflation.
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The state’s budget outlook for the 2012–2013 biennium improved steadily since 2012 and the state began
to use its budget reserve to “buy back” outstanding school aid payment shifts in 2012–2013. The state
completed the buy back during the 2013–2014 school year and returned school districts to a 90 percent in
the current year and a 10 percent in the subsequent year state aid payment schedule. In addition, the state
also used the remaining budget reserve to reduce the school district property tax recognition shift, which
positively impacted the District’s cash and investments balance and eliminated the need for more
short-term borrowing.
With the improved budget outlook at the state, the 2013 Legislature approved additional funding for
K–12 education for the 2013–2015 biennium. A majority of the new funding is dedicated to full-day
kindergarten, but basic general education formula allowance increases of 1.5 percent and 2.0 percent for
the 2013–2014 and 2014–2015 school years, respectively, remains below inflation.
To avoid major staffing and program cuts, the School Board agreed to place a levy referendum question
in the November 5, 2013 General Election. The additional funds from an approved levy increase would
allow the District to maintain quality programs that the community expects for its students, including
early childhood learning, STEM, and college-in-the-schools programs.
On November 5, 2013, district voters approved a single ballot question to revoke the District’s current
levy for $1,111 per pupil and replace it with a new 10-year levy for $1,486 per pupil, an increase of $375
per pupil. This will generate an additional $11 million per year for the District. The levy question was
approved by a two to one margin.
With the passage of the 10-year operating levy, the District’s updated 5-year forecast indicated that the
District would not have to make significant budget adjustments for the 2014–2015 school year.
The District is committed to continue to engage staff and community members in further budget
discussions and to consider other options for increasing revenues and containing expenditure growth.
MAJOR INITIATIVES
Teaching and Learning
During the 2013–2014 school year, substantial planning and professional development occurred for three
major initiatives:

Comprehensive Literacy Plan
The District completed the second phase of implementation for its comprehensive literacy plan,
which is aligned to the state’s Read Well by Grade Three requirements. The literacy plan follows
the Literacy Collaborative model and the District is working in cooperation with Ohio State
University and Lesley University with the implementation. The literacy plan incorporates
individual literacy assessment for all K–5 students prior to and during the school year, revised
assessment tools, progress monitoring software, coaching and support from a highly trained
literacy lead teacher in every elementary school, targeted instruction, and a calendar change that
provides time for focused and data driven conversations for teacher teams on a regular basis.

Common Formative Assessment
At the secondary level, structure, support, and protocols for common formative assessment were
developed for use by all content area teams. The initiative outlines a process for Learning Teams
to develop and administer assessments which are organized by learning targets, analyze and
discuss assessment results, develop intervention and enrichment opportunities, and reflect on the
process. The initiative facilitates the use of relevant data for all teacher teams with the goal of
responding to student needs and continually improving core instruction.
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
Learning and Technology
The District acknowledges that technology continues to change at an exponential rate, creating a
dynamic world around us; and that district educators need to work to ensure that our schools and
classrooms are as dynamic and engaging as the world in which our students live, and as dynamic
as the world of post-secondary education and careers for which they are preparing. In April 2013,
a task force of 37 members began a visioning process regarding learning and technology in the
District. The task force’s recommendation was approved by the School Board and
implementation of the new learning and technology plan with 1-to-1 access in 46 beta classrooms
spread throughout the District will begin in the 2014–2015 school year.
Partnership – Education and Business
During the 2013–2014 school year, the District helped lead the development of the Dakota County
Education Business Partnership with a goal to facilitate opportunities for students to prepare them for the
world of work. In April 2014, the District was 1 of 24 school districts in the nation, and only 2 in
Minnesota, selected to receive a Youth CareerConnect grant awarded by the United States departments of
Labor and Education. The grant will provide almost $3.0 million over the next four years to establish a
STEM education partnership between Apple Valley High School, Inver Hills Community College and
Dakota County Technical College, Thomson Reuters, Uponor, Dakota Electric, Delta Airlines, and others.
The District will align rigorous educational studies with work experiences that will enhance instruction
and provide real-world learning opportunities in high-demand industries such as computer science,
information technology, engineering, energy technology, and biomedical technology. Students will be
able to learn about and experience careers in STEM-related fields by working with the grant partners.
Facilities and Equipment
At its semi-annual planning meeting, the School Board authorized the Superintendent to establish a
Strategic Planning Facilities and Equipment Task Force to study the District’s facilities and equipment
needs. The task force is tasked to develop recommendations to provide the facilities and equipment
needed to support the District’s strategic initiatives in teaching and learning, early learning, educational
equity, and partnerships. The task force met on August 15, 2014 and is scheduled to meet twice monthly
through November 2014. There will be multiple opportunities for the public to provide input. The final
recommendations will be presented to the School Board in January 2015.
ACKNOWLEDGMENTS
The preparation of this CAFR in a timely manner would not be possible without the assistance of the
entire Finance Department staff. I would like to particularly thank our Controller, Joseph Bertram; finance
department Supervisors Desiree Fleming and Joyce Peterson; and all the finance department staff for their
work.
Sincerely,
Stella Y. Johnson
Coordinator of Finance
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-x-
301.4.5AR
Director of
Elementary Education
Attorney
Revised
Director of
Special Education
October 2012
Director of
Secondary Education
Administrative
Assistant
Director of
Human Resources
Superintendent
School Board
October 1989
Director of
Finance and Operations
Adopted
INDEPENDENT SCHOOL DISTRICT 196
Rosemount-Apple Valley-Eagan Public Schools
Educating our students to reach their full potential
Organization Chart
Director of
Community Education
Title
Series Number
PRP's/Regulations/300/301.4.5AR.indd
District 196 Graphics/9-27-12
Director of
Communications
-xiDirector of
Teaching and Learning
INDEPENDENT SCHOOL DISTRICT NO. 196
School Board and Superintendent’s Cabinet
for the Year Ended June 30, 2014
SCHOOL BOARD
Rob Duchscher
Jackie Magnuson
Gary Huusko
Art Coulson
Joel Albright
Mike Roseen
Bob Schutte
Chairperson
Vice Chairperson
Clerk
Treasurer
Director
Director
Director
SUPERINTENDENT’S CABINET
Jane Berenz
Khia Brown
Jill Coyle
Kim Craven
Mary Kreger
Julie Olson
Mark Parr
Thomas Peterstuen
Jeffrey M. Solomon
Tony Taschner
Steve Troen
Superintendent
Director of Community Education
School District Attorney
Administrative Assistant to the Superintendent
Director of Special Education
Director of Elementary Education
Director of Secondary Education
Director of Human Resources
Director of Finance and Operations
Director of Communications
Director of Teaching and Learning
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42
35E
Southcross Dr .
Burnsville
35W
35W
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25
12
16
Whitney Dr .
14
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2
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Eagan
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18
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Rd
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135th St .
Inver
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160th St .
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Empire Township
Rosemount
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149
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15
Yankee Doodle Rd .
Lone Oak Rd.
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Map also available at http://www.district196.org/maps/
Lakeville
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Apple Valley
22
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34
Minn.
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Johnny Cake Rd .
3 132nd St .
140th St .
77
Rahn Rd .
3
6
20 1
Deerwood Dr .
Pilot Knob Rd .
(2013-14)
c a go A v
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35E
Diamond Path
District Map
Garden V iew Dr .
ino
Dr
.
Hayes Rd.
Thomas
Lake Rd .
Lexington Ave.
Shannon Pkwy .
Educating our students to reach their full potential
Cedar Ave.
Dodd Rd .
Rosemount-Apple Valley-Eagan Public Schools
Barnes Av e.
Blaine Ave.
INDEPENDENT SCHOOL DISTRICT 196
Galaxie Ave.
-xiiiFoliage Ave.
ck
do
Pilot Knob Rd .
.
d Rd
ad
Akron Ave.
Br
Dod
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55
Co
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Elementary Schools
Deerwood
Echo Park
Greenleaf
Highland
Northview
Oak Ridge
Parkview
Pinewood
Red Pine
Rosemount
Shannon Park
Southview
Thomas Lake
Westview
Woodland
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Township
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18 Glacier Hills School of
Arts and Science
Elementary Magnet
Schools
16 Cedar Park Science,
Tech., Engineering and
Math (STEM) School
17 Diamond Path School
of International Studies
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2
3
4
5
6
7
8
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Coates
52
52
Courthouse Blvd .
Middle Schools
Black Hawk
Dakota Hills
Falcon Ridge
Rosemount
Scott Highlands
Valley
Cedar Valley Learning Center
2
County Hwy .
State Hwy .
U.S. Hwy .
Interstate
Corporate boundar y
3 Rahncliff Learning Center
Early Childhood Learning Center
1
District Offices
Special Education School
40 Dakota Ridge
High Schools
Apple Valley
Eagan
Eastview
Rosemount
School of Environmental
Studies
35 Area Learning Center
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Association of School Business Officials International The Certificate of Excellence in Financial Reporting Award
is presented to
Independent School District 196
Rosemount-Apple Valley-Eagan Public Schools
For Its Comprehensive Annual Financial Report (CAFR)
For the Fiscal Year Ended June 30, 2013
The CAFR has been reviewed and met or exceeded
ASBO International’s Certificate of Excellence standards
Terrie S. Simmons, RSBA, CSBO
President
-xiv-
John D. Musso, CAE, RSBA
Executive Director
SECTION II
Financial
INDEPENDENT AUDITOR’S REPORT
To the School Board and Management of
Independent School District No. 196
Rosemount, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of Independent School District No. 196 (the District) as of and for
the year ended June 30, 2014, and the related notes to the financial statements, which collectively
comprise the District’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the District’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
-1-1-
OPINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the District as of June 30, 2014, and the respective changes in
financial position and, where applicable, cash flows thereof, and the budgetary comparison for the
General Fund for the year then ended, in accordance with accounting principles generally accepted in the
United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and the required supplementary information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, supplemental information,
and statistical section, as listed in the table of contents, are presented for purposes of additional analysis
and are not required parts of the basic financial statements.
The supplemental information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Prior Year Comparative Information
We have previously audited the District’s 2013 financial statements, and we expressed unmodified audit
opinions on the respective financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information in our report dated October 25, 2013. In our opinion, the partial
comparative information presented herein as of and for the year ended June 30, 2013 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
(continued)
-2-
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated October 27,
2014 on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control over
financial reporting and compliance.
Minneapolis, Minnesota
October 27, 2014
-3-
-4-
Independent School District No. 196
Rosemount, Minnesota
“Educating our students to reach their full potential”
Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2014
This section of Independent School District No. 196’s (the District) comprehensive annual financial
report (CAFR) presents management’s discussion and analysis of the District’s financial performance
during the fiscal year ended June 30, 2014. Please read it in conjunction with the transmittal letter at the
front of this report and the District’s financial statements, which immediately follow this section.
FINANCIAL HIGHLIGHTS
As of June 30, 2014, the District shows an increase in total net position from current year activities of
$7.86 million. There are many factors that have contributed to the increase. A few key financial highlights
from the District’s basic financial statements for the 2013–2014 fiscal year are listed below:

The assets of the District exceeded its liabilities and deferred inflows of resources at the close of
the 2013–2014 fiscal year by $186.48 million. Of this amount, $27.76 million (unrestricted net
position) may be used to meet the District’s ongoing obligations.

The District’s total net position increased by $7.86 million from current year activities. The
District’s net investment in capital assets increased by $7.90 million, due in part to the use of an
available “alternate facilities levy” that allows the District to make significant facility
improvements without having to issue debt. Restricted net position increased by $1.42 million,
due to the District issuing certificates of participation in the current year. The unrestricted portion
of the District’s net position decreased by $1.46 million. This decrease is mainly due to a
budgeted spend-down of unrestricted fund balances in the District’s General Fund, offset by
increases in the net positions of the District’s self-insurance funds. District budget administrators
continue to monitor their budgets closely and adjust their programs and spending accordingly.

As of June 30, 2014, the District’s governmental funds reported combined ending fund balances
of $61.88 million, a net decrease of $27.47 million in comparison with the prior year.
Approximately 30.27 percent of this total amount, or $18.73 million, is unrestricted – unassigned.

At the close of the 2013–2014 fiscal year, unrestricted – unassigned fund balance for the General
Fund was $18.73 million, or 6.19 percent, of total General Fund expenditures.

The District’s long-term liabilities decreased by $25.00 million, or 13.44 percent, during the
current fiscal year. The key factors in this change were: a net decrease of outstanding bonds and
certificates of participation payable (including unamortized premiums and discounts) of
$25.83 million; a decrease of $1.13 million in capital lease obligations; and an increase of
$1.96 million in net other post-employment benefit (OPEB) obligations, severance, and vacation
payable. During the 2013–2014 fiscal year, the District issued $13.71 million of Series 2013B
Certificates of Participation to finance construction of a new early childhood/adult education
facility. The District also issued $2.23 million of Series 2014A Refunding Bonds, the proceeds of
which were placed in escrow and will be used to redeem the 2015 through 2019 maturities of the
District’s Series 2005B General Obligation School Building Refunding Bonds in advance of their
stated maturities in August 2014. In August 2013, proceeds held in escrow from the District’s
2012C Crossover Refunding Bonds were used to retire the remaining principal ($26.85 million)
of its 2004A General Obligation School Building Bonds in advance of their stated maturities,
saving the District $4.26 million in future interest payments.
-5-
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of the CAFR consists of the following:

Independent Auditor’s Report;

Management’s Discussion and Analysis (MD&A);

Basic financial statements, including the government-wide financial statements, fund financial
statements, and the notes to basic financial statements;

Required supplementary information; and

Supplemental information consisting of combining, individual fund, and capital assets statements
and schedules.
The basic financial statements include two kinds of statements that present different views of the District:

Government-Wide Financial Statements – The government-wide financial statements,
including the Statement of Net Position and Statement of Activities, provide short-term and
long-term information about the District’s overall financial status.

Fund Financial Statements – The fund financial statements focus on individual parts of the
District, reporting the District’s operation in more detail than the government-wide financial
statements. The District maintains three groups of fund financial statements:
1. Governmental Fund Statements – Governmental fund statements review how basic
services such as regular and special education were financed in the short-term as well as
what remains for future spending.
2. Proprietary Fund Statements – Proprietary fund statements offer short-term and
long-term financial information about the activities the District operates like businesses.
3. Fiduciary Fund Statements – Fiduciary fund statements provide information about the
financial relationships in which the District acts solely as a trustee or agent for the benefit
of others to whom the resources belong.
The financial statements also include notes that explain some of the information in the statements and
provide more detailed data.
-6-
Figure 1 depicts how the various parts of this CAFR are arranged and their relationship to one another.
Figure 1
Organization of
Comprehensive Annual Financial Report
Management’s
Discussion
and
Analysis
Basic
Financial
Statements
Government-Wide
Financial
Statements
Fund
Financial
Statements
Summary
Notes
to Basic
Financial
Statements
Detail
Figure 2, at the top of the next page, summarizes the major features of the District’s financial statements,
including portions of the District’s activities covered and the types of information they contain. The
remainder of this overview section of the MD&A highlights the structure and contents of each of the
statements.
-7-
Figure 2
Major Features of the Government-Wide and Fund Financial Statements
Government-Wide
Financial Statements
Entire district (except
fiduciary funds)
Scope
Required financial
statements
Governmental Funds
The activities of the District
that are not proprietary or
fiduciary, such as
building maintenance,
food service, and
community education
– Statement of Net Position – Balance Sheet
– Statement of Activities
– Statement of Revenue,
Expenditures, and Changes
in Fund Balances
Accounting basis and
measurement focus
Type of asset/deferred
outflow of resources/
liability/deferred inflow
of resources information
Accrual accounting and
economic resources focus
All assets, deferred
outflows of resources,
liabilities, and deferred
inflows of resources;
both financial and capital,
short-term and long-term
Modified accrual accounting
and current financial focus
Generally assets expected
to be used up and
liabilities that come due
during the year or soon
thereafter; no capital
assets or long-term
liabilities included
Type of inflow/outflow
information
All revenues and expenses
during the year, regardless
of when cash is received
or paid
Revenues for which cash is
received during or soon
after the end of the year;
expenditures when goods
or services have been
received and the related
liability is due and payable
Fund Financial Statements
Proprietary Funds
Activities of the District
that operate similar to
private businesses:
internal service funds
– Statement of Net Position
– Statement of Revenue,
Expenses, and Changes in
Fund Net Position
– Statement of Cash Flows
Accrual accounting and
economic resources focus
All assets, deferred
outflows of resources,
liabilities, and deferred
inflows of resources;
both financial and capital,
short-term and long-term
All revenues and expenses
during the year, regardless
of when cash is received
or paid
Fiduciary Funds
Instances in which the
District administers
resources on behalf of
someone else, such as the
graduate credit program
– Statement of Fiduciary
Net Position
– Statement of Changes in
Fiduciary Net Position
Accrual accounting and
economic resources focus
All assets, deferred
outflows of resources,
liabilities, and deferred
inflows of resources; both
short-term and long-term.
Funds do not currently
contain capital assets;
although they can
All additions and
deductions during the
year, regardless of when
cash is received or paid
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
District’s finances, using accounting methods similar to those used by private sector companies.

Statement of Net Position – Presents all of the District’s assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in the District’s net position are indicators of whether its financial
position is improving or deteriorating, respectively.

Statement of Activities – Presents information showing how the District’s net position changed
during the most recent fiscal year. All of the current year’s revenues and expenses are accounted
for in the Statement of Activities regardless of when cash is received or paid.
To assess the overall health of the District requires consideration of additional nonfinancial factors such
as changes in the District’s property tax base and the condition of school buildings and other facilities.
In the government-wide financial statements the District’s activities are shown in one category titled
“governmental activities.” The District’s basic services are reported here, including regular and special
education, transportation, administration, food services, and community education. Property taxes and
state aids finance most of these activities.
-8-
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The District uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements.
The fund financial statements provide more detailed information about the District’s funds, focusing on
its most significant or “major” funds, rather than the District as a whole. Funds (Food Service and
Community Service Special Revenue) that do not meet the threshold to be classified as major funds are
called “nonmajor” funds. Detailed financial information for nonmajor funds is presented in the
supplemental information section.
The District maintains three kinds of funds:

Governmental Funds – The District’s basic services are included in governmental funds which
generally focus on: 1) how cash and other financial assets that can readily be converted to cash
flow in and out, and 2) the balances left at year-end that are available for spending. Consequently,
the governmental funds statements provide a detailed short-term view that helps to determine
whether there are more or less financial resources that can be spent in the near future to finance
the District’s programs. Because this information does not encompass the additional long-term
focus of the government-wide financial statements, we provide additional information
(reconciliation schedules) immediately following the governmental funds statements that explain
the relationship (or differences) between these two types of financial statement presentations.

Proprietary Funds – Services for which the District charges a fee are generally reported in
proprietary funds. Proprietary funds are reported in the same way as the government-wide
financial statements. The District currently has four internal service funds to account for
severance benefits, OPEB, self-insured dental benefits, and self-insured health benefits.

Fiduciary Funds – The District is the trustee, or fiduciary, for assets that belong to others, such
as the Employee Benefit Trust Fund, Scholarship Private-Purpose Trust Fund, and two agency
funds. The District is responsible for ensuring that the assets reported in these funds are used only
for their intended purposes and by those to whom the assets belong. All of the District’s fiduciary
activities are reported in a separate Statement of Fiduciary Net Position and a Statement of
Changes in Fiduciary Net Position. We exclude these activities from the government-wide
financial statements because the District cannot use these assets to finance its operations.
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
The District’s financial position is the product of many factors. As indicated earlier, net position may
serve over time as a useful indicator of the District’s financial position. The reader needs to understand
that the determination of net position includes significant assumptions and estimates, such as current and
accumulated depreciation amounts. A conservative versus liberal approach to depreciation estimates, as
well as capitalization policies, may produce a significant difference in the calculation of the District’s net
investment in capital assets.
-9-
Net Position – The District’s combined net position was $186.48 million at June 30, 2014. This is an
increase of $7.86 million, or 4.40 percent, from the previous year total of $178.61 million. (See Table 1)
Table 1
Net Position – Governmental Activities
2014
Assets
Current and other assets
Capital assets
2013
Percent Change
2013 to 2014
$
258,555,183
218,577,535
$
244,170,611
218,008,449
5.89%
0.26%
Total assets
$
477,132,718
$
462,179,060
3.24%
Liabilities
Long-term liabilities
Other liabilities
$
161,031,981
54,512,094
$
186,036,207
50,792,982
(13.44%)
7.32%
$
215,544,075
$
236,829,189
(8.99%)
$
75,112,544
$
46,737,284
60.71%
$
148,790,976
9,921,118
27,764,005
$
140,892,970
8,493,979
29,225,638
5.61%
16.80%
(5.00%)
$
186,476,099
$
178,612,587
4.40%
Total liabilities
Deferred inflows of resources
Property taxes levied for subsequent year
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
The largest portion of the District’s net position (79.79 percent) reflects its net investment in capital assets
(e.g. land, buildings, and furniture and equipment) less any outstanding debt used to acquire those assets.
An additional portion of the District’s net position (5.32 percent) represents resources that are restricted as
to how they may be used, such as capital assets acquisition and debt service payment needs. The
unrestricted net position (14.89 percent) may be used to meet the District’s ongoing obligations.
The $7.86 million increase in net position is a result of many factors. Some of the major ones are:

In 2013–2014, the District’s net investment in capital assets increased $7.90 million. A portion of
this increase is due to the use of the “alternative facilities levy” to make facility improvements
without having to issue debt. The balance of the increase is due to the use of state funding for
equipment, facility improvements, and state-approved health and safety projects.

In 2013–2014, restricted net position increased $1.42 million. This increase is chiefly due to
increases in General Fund restricted fund balances for operating capital and the capital projects
levy in the current year.

Unrestricted net position decreased $1.46 million, mainly due to a budgeted spend-down of
unrestricted fund balances in the General Fund offset by increases in the net position of the
District’s self-insurance funds.
-10-
Table 2, as presented below, contains a condensed version of the Change in Net Position of the District:
Table 2
Change in Net Position
2014
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
General grants and aids
Other
Total revenues
Expenses
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Unallocated depreciation
Interest and fiscal charges on long-term debt
Total expenses
$
20,328,714
48,096,296
103,677
Net position – ending
$
Percent Change
2013 to 2014
20,015,182
47,069,459
41,520
1.57%
2.18%
149.70%
50,064,503
218,035,675
7,734,941
344,363,806
75,339,486
191,800,239
6,128,479
340,394,365
(33.55%)
13.68%
26.21%
1.17%
12,788,255
8,478,285
150,639,805
3,894,552
60,005,088
16,554,014
22,561,249
25,311,941
697,917
11,359,961
9,802,212
9,805,568
4,601,447
336,500,294
11,433,970
8,309,187
147,547,387
3,878,014
57,500,259
16,280,078
22,089,783
23,639,275
598,093
10,942,769
9,754,914
10,385,661
5,894,160
328,253,550
11.84%
2.04%
2.10%
0.43%
4.36%
1.68%
2.13%
7.08%
16.69%
3.81%
0.48%
(5.59%)
(21.93%)
2.51%
7,863,512
12,140,815
(35.23%)
178,612,587
166,471,772
$ 186,476,099
$ 178,612,587
Increase in net position
Net position – beginning
2013
Changes in Net Position – The District’s total revenues were $344.36 million for the year ended June 30,
2014. This is an increase of $3.97 million, or 1.17 percent, from the 2012–2013 actual revenues of
$340.39 million.
For 2013–2014, property taxes and general grants and aids accounted for 77.85 percent of total revenue
for the year.
About 14.00 percent of the District’s revenue came from operating and capital grants. Fees and charges
for services accounted for 5.90 percent of the total revenue, while the remaining 2.25 percent came from
other general revenue, including investment income.
-11-
For 2013–2014, the total cost of all programs and services was $336.50 million. This is an increase of
$8.25 million, or 2.51 percent, from the 2012–2013 total cost of $328.25 million.
As in past years, the bulk of the District’s resources (75.38 percent) were directed to providing
instructional services to our students enrolled in regular education, special education, and vocational
education programs (including instructional and pupil support). (See Figure 4.)
The administrative activities of the District accounted for 3.80 percent of total costs for the year. Total
revenues surpassed expenses, increasing the District’s net position by $7.86 million.
-12-
The cost of all governmental activities for 2013–2014 was $336.50 million. Of this amount,
$68.53 million was supported by “charges for services, operating grants, or capital grants” received by the
schools. (See Table 3.)

A majority of the District’s costs were paid for by state taxpayers based on the state-wide
education aid formula, and property taxes paid by district taxpayers.

The federal
grants and
2013–2014.
with grants
2013–2014.

About 6.04 percent, or $20.33 million, of costs were paid by the users of the District’s programs.

Finally, $7.73 million of district revenue came from investment earnings and other general
revenue.
and state governments, and other local sources, subsidized certain programs with
contributions totaling $48.20 million, or 14.32 percent, of the total costs for
In addition, federal, state, and local sources subsidized general district operations
and contributions of $218.04 million, or 64.80 percent, of the total costs for
Table 3
Net Cost of Governmental Activities
Net Cost of Services
2014
2013
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Unallocated depreciation
Interest and fiscal charges on long-term debt
Total
$
12,788,255
8,262,007
137,427,595
3,058,364
26,484,695
16,436,655
20,551,902
25,116,824
697,917
219,923
2,520,455
9,805,568
4,601,447
$ 267,971,607
-13-
$
11,432,572
8,081,401
133,706,331
3,090,270
25,243,262
16,160,379
20,224,990
23,528,919
598,093
12,639
2,768,712
10,385,661
5,894,160
$ 261,127,389
Percent Change
2013 to 2014
11.86%
2.23%
2.78%
(1.03%)
4.92%
1.71%
1.62%
6.75%
16.69%
1,640.03%
(8.97%)
(5.59%)
(21.93%)
2.62%
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
The financial performance of the District as a whole is also reflected in its governmental funds. As of
June 30, 2014, the District’s governmental funds reported a combined fund balance of $61.88 million, a
decrease of $27.47 million, or 30.75 percent, from last year’s ending fund balance of $89.35 million. This
net decrease is chiefly due to the following factors:

During 2013–2014, the District issued $13.71 million Certificates of Participation, Series 2013B.
Proceeds from this issue are used to fund the construction of a new early childhood/adult
education facility (Dakota Valley Learning Center) in the current year. The District has expended
$5.87 million of the proceeds in 2013-2014; the remaining $7.89 million will be used to complete
the project during the 2014–2015 school year.

In 2013–2014, the District’s Series 2012C Refunding Bonds proceeds (held in escrow) were used
to call the remaining principal of the District’s 2004A Building Bonds on August 1, 2013. The
total payoff of the 2004A amounted to $26.85 million.

In 2013–2014, actual expenditures and other financing uses were $8.62 million more than actual
revenues and other financing sources in the General Fund. The School Board-approved planned
deficit spending for the General Fund was $14.91 million. The actual result was $6.28 million
better than planned.
Table 4 shows the change in total fund balances of each of the District’s governmental funds:
Table 4
Governmental Fund Balances
2014
Major funds
General
Capital Projects –
Building Construction
Debt Service
Total major funds
$
Nonmajor funds
Special revenue
Food Service
Community Service
Total nonmajor funds
Total major and nonmajor funds
$
Increase
(Decrease)
2013
31,130,886
$
39,755,826
$
Percent
Change
2013 to 2014
(8,624,940)
(21.69%)
8,152,736
18,831,629
58,115,251
1,517,978
44,234,187
85,507,991
6,634,758
(25,402,558)
(27,392,740)
437.08%
(57.43%)
(32.04%)
2,376,363
1,387,626
3,763,989
2,640,765
1,201,749
3,842,514
(264,402)
185,877
(78,525)
(10.01%)
15.47%
(2.04%)
89,350,505
$ (27,471,265)
(30.75%)
61,879,240
-14-
$
GENERAL FUND
The General Fund is used by the District to record the primary operations of providing education services
to students from kindergarten through Grade 12. Pupil transportation activities and capital and major
maintenance projects are also included in the General Fund.
Funding for Minnesota school districts is largely driven by enrollment. Over the last five years, the
District’s enrollment has remained fairly stable in the number of students. Based on the results of an
updated enrollment projection reviewed by the School Board in November 2013, it appears that
enrollment for the District will remain fairly stable over the next four years, ranging from 27,228 for the
2014–2015 school year to 27,215 for the 2017–2018 school year.
The graph below (Figure 5) shows the District’s actual average daily membership (ADM) over the last
five years. Elementary and secondary ADM for 2013–2014 both increased slightly from the previous
year. Preliminary enrollment data for the 2014–2015 fiscal year shows a small increase from 2013–2014.
Figure 5
Students (Average Daily Membership)
30,000
25,000
20,000
15,000
10,000
5,000
–
2010
2011
2012
Elementary
-15-
Secondary
2013
2014
Table 5, as shown below, presents a summary of General Fund revenues and other financing sources:
Table 5
General Fund Revenues and Other Financing Sources
Amount of
Increase
(Decrease)
Year Ended June 30,
2014
2013
Revenues
Local sources
Property taxes
Interest earnings
Other
State sources
Federal sources
Total revenues
$
30,849,978
179,260
12,397,513
248,498,788
7,811,310
299,736,849
$
54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
Other financing sources
Capital leases
Certificates of participation
Sale of capital assets
Total other financing sources
96,569
137,506
8,143
242,218
–
–
402,372
402,372
Total General Fund revenues
and other financing sources
$ 299,979,067
$ 297,890,210
$
$
Percent
Increase
(Decrease)
(23,529,662)
84,209
(283,019)
26,344,459
(366,976)
2,249,011
(43.27%)
88.59%
(2.23%)
11.86%
(4.49%)
0.76%
96,569
137,506
(394,229)
(160,154)
100.00%
100.00%
(97.98%)
(39.80%)
2,088,857
0.70%
During 2013–2014, the District’s total General Fund revenues and other financing sources increased
$2.09 million, or 0.70 percent, from the previous year. The increase was due to the following factors:

The $23.53 million decrease in property taxes was chiefly due to a $22.71 million change in the
tax shift in the current year, which was offset by a dollar-for-dollar increase in state aid.

State aids for 2013–2014 were $26.34 million higher than the previous year. This increase was
mainly due to: 1) the $22.71 million increase in state aid revenue due to the tax shift; 2) a
$78 per pupil unit increase in the basic general education aid; 3) additional $0.31 million from a
new revenue component (incentive revenue) of the redefined achievement and integration
program; 4) $0.23 million in career and technical education equalized state aid, and
5) $0.48 million in cross subsidy reduction aid. Cross subsidy reduction was approved by the
2013 Legislature with the intent to provide additional special education funding to school districts
to reduce the burden on the districts’ general funds. Cross subsidy reduction aid will sunset after
the 2014–2015 school year. The new special education funding formula will take effect in the
2015–2016 school year.

For 2013–2014, federal sources decreased by $0.37 million. The main reason for the decrease is
the District did not spend all of its Title program and special education allocations in 2013–2014.
The District is allowed to carryover the unspent entitlements to the 2014–2015 fiscal year.

During 2013–2014, actual gifts to schools and other district income were $1.79 million better
than budget. Gifts to schools include fundraising revenue, donations, and other contributions.
Other district income includes reimbursements received from other school districts, resale, sales
of materials and obsolete equipment, etc.

The decrease in other financing sources is due to the sale of capital assets in 2012–2013, partially
offset by the issuance of a capital lease and certificates of participation in the current year.
-16-
Table 6, as shown below, presents a summary of General Fund expenditures and other financing uses:
Table 6
General Fund Expenditures and Other Financing Uses
Amount of
Increase
(Decrease)
Year Ended June 30,
2014
2013
Expenditures
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total expenditures
Other financing uses
Transfers out
Total General Fund expenditures
and other financing uses
$ 194,127,469
67,515,737
22,548,716
9,724,594
6,175,866
2,383,201
302,475,583
$ 188,018,283
63,383,807
21,161,112
9,805,225
6,238,429
3,445,517
292,052,373
6,128,424
7,456,023
$ 308,604,007
$ 299,508,396
$
$
Percent
Increase
(Decrease)
6,109,186
4,131,930
1,387,604
(80,631)
(62,563)
(1,062,316)
10,423,210
3.25%
6.52%
6.56%
(0.82%)
(1.00%)
(30.83%)
3.57%
(1,327,599)
(17.81%)
9,095,611
3.04%
Total General Fund expenditures and other financing uses increased $9.10 million, or 3.04 percent, from
the previous year.
Actual salaries for 2013–2014 were 3.25 percent higher than the prior year. The District’s staffing costs
are driven by School Board-approved staffing guidelines, student enrollment, and School Board-approved
employment contracts. The increase was mainly due to contractual salary increases.
Employee benefits increased $4.13 million, or 6.52 percent, from the previous school year. This increase
was mainly due to: 1) a 0.5 percent increase in Teachers’ Retirement Association (statutory retirement
contribution for licensed/certified staff); 2) a School Board-approved increase in the District’s health
insurance premium contribution for several employee groups; 3) an increase in workers’ compensation
premium mainly due to the District’s claims history, and 4) more staff members eligible for the District’s
match towards their tax sheltered annuity contributions.
Purchased services increased by $1.39 million, or 6.56 percent, from the previous year. This was mainly
due to increases in property and liability insurance premiums, field trip transportation chargebacks,
fieldtrip registrations for students, heating fuel, electricity, and other contracted services such as rubbish
removal, merchant account fees, and mandated changes in how “membership” payments to a computing
consortium should be reported (see the following paragraph for “other expenditures”).
Other expenditures decreased $1.06 million, or 30.83 percent, from the previous year. A majority of this
decrease is due to state mandated changes in how “membership” payments to a computing service
consortium and software license fees should be reported. Prior to 2013–2014, school districts were
allowed to report these payments within the “other expenditure” category; with the mandated change,
these payments are now required to be reported as “contracted” services or supplies and materials.
Other financing uses decreased $1.33 million, or 17.81 percent, from the prior year. This is due to two
factors: 1) the 2012–2013 other financing uses included a one-time transfer of $0.71 million of Medical
Loss Ratio and Early Retiree Reinsurance Program rebates received from HealthPartners to the District’s
Self-Insured Health Benefits Internal Service Fund, and 2) a decrease of $0.62 million in the District’s
alternative facilities levy (used to support the District’s major maintenance projects) transferred to the
Capital Projects – Building Construction Fund.
-17-
In summary, 2013–2014 General Fund expenditures and other financing uses exceeded revenues and
other financing sources by $8.62 million, decreasing total fund balance by the same amount at June 30,
2014. After deducting statutory restrictions and internal assignments, the unrestricted – unassigned fund
balance increased from $16.84 million at June 30, 2013 to $18.73 million at June 30, 2014.
Figure 6 and Table 7 show the General Fund – Operating Account unrestricted – unassigned fund balance
as a percentage of expenditures.
Figure 6
General Fund – Operating Account
Unrestricted – Unassigned Fund Balance as a Percentage of Expenditures
$280,000,000
$270,000,000
$260,000,000
$250,000,000
$240,000,000
$230,000,000
$220,000,000
$210,000,000
$200,000,000
$190,000,000
$180,000,000
$170,000,000
$160,000,000
$150,000,000
$140,000,000
$130,000,000
$120,000,000
$110,000,000
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$–
11.13%
2012
Fund Balance
5.77%
6.12%
2013
2014
Total Expenditures
The graph, as shown in Figure 6 above, is the single best measure of the District’s overall financial health.
The unrestricted – unassigned fund balance of $16.93 million in the Operating Account of the General
Fund at June 30, 2014 represents 6.12 percent of annual Operating Account expenditures, or slightly over
three weeks of operations.
-18-
To comply with financial reporting requirements, the unassigned fund balance of $16.93 million in the
Operating Account of the General Fund is exclusive of the $5.06 million that the District has assigned for
budgeted deficit spending in the 2014–2015 school year. Based on prior years’ performance, the District
is confident that the actual deficit spending for the 2014–2015 school year will be much smaller than
projected.
The District is committed to continue to provide quality instructional services to our students; the
administration and School Board will continue to monitor expenditures and maintain fund balance as
prescribed in School Board policy.
Table 7
General Fund – Operating Account
Unrestricted – Unassigned Fund Balance and Expenditures
2012
Unrestricted – unassigned
fund balance
$
Percent increase (decrease)
Expenditures
28,668,684
2013
$
15,373,033
13.87%
$
257,509,371
Percent increase (decrease)
(1.55%)
Percent of fund balance to
expenditures
11.13%
2014
$
(46.38%)
$
266,285,025
3.41%
5.77%
16,930,805
10.13%
$
276,661,284
3.90%
6.12%
General Fund Budgetary Highlights
The District is required to adopt an operating budget prior to the beginning of its fiscal year (July 1),
referred to as the preliminary budget. Over the course of the year, the District revised its annual operating
budget twice. These budget amendments fall into two categories:
1. Implementing budgets for specially funded projects, which include both federal and state grants,
adjusting staffing and various instructional allocations to the schools based on actual enrollment
on October 1, 2013, and unspent funds carried over from fiscal year 2012–2013.
2. Increase in appropriations for significant unbudgeted costs.
-19-
The final budget amounts, as shown in Table 8 below, include all of these adjustments and represent the
District’s revised estimates for 2013–2014:
Table 8
General Fund Budget
Percent Change
Preliminary
to Final
Preliminary
Budget
Final Budget
Revenue and other
financing sources
$ 293,138,382
$ 297,171,867
$
4,033,485
1.38%
Expenditures and other
financing uses
$ 310,448,308
$ 312,081,562
$
1,633,254
0.53%
Net gain (loss)
$
$
$
2,400,231
13.87%
(17,309,926)
(14,909,695)
Increase
(Decrease)
While the District’s final budget for the General Fund anticipated that expenditures and other financing
uses would exceed revenues and other financing sources by $14.91 million (net loss), the actual results for
the year show a net loss of $8.62 million.

Actual revenues and other financing sources were about $2.81 million more than expected. In
2013–2014, gifts to schools and other miscellaneous income to the District were $2.00 million
better than budget. The District also qualified to receive $0.31 million in incentive revenue
(a component of the redefined achievement and integration program). The actual 2013–2014
special education aid was $0.27 million better than budget, mainly due to updating the aid
calculations using the most current information provided by the Minnesota Department of
Education.

Actual expenditures and other financing uses were $3.48 million, or 1.11 percent, lower than
budget. There are many factors, both positive and negative, that have contributed to the net
decrease. In 2013–2014, the District performed better than budget in the almost all areas of
operating with the exception of special education, community service, instructional support, and
debt service. The budget savings from the other areas totaled $7.01 million; over half of this
savings is due to schools not spending all of their 2013–2014 allocations.
CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND
The Capital Projects – Building Construction Fund revenues and other financing sources exceeded
expenditures by $6.63 million for the year ended June 30, 2014, resulting in an increase of the same
amount in the June 30, 2014 fund balance. The increase is the result of three main factors: 1) the early
start of 2013–2014 state-approved projects in 2012–2013, 2) savings from several projects through the
quotation and sealed bid process, and 3) $7.89 million in unspent proceeds from Series 2013B Certificates
of Participation which will be used in 2014–2015 to complete the construction of the Dakota Valley
Learning Center.
-20-
DEBT SERVICE FUND
Revenues and expenditures for the District’s Debt Service Fund are directly tied to the District’s bond
principal and interest payment needs. For 2013–2014, approximately 99.61 percent of the District’s debt
service revenues came from property taxes. The remaining balance came from the state in the form of
agricultural market value property tax credits and interest income from short-term investments.
In 2013–2014, the District’s total Debt Service Fund expenditures and other financing sources exceeded
revenues by $25.40 million. The negative difference is mainly due to the previously discussed
$26.85 million payment for debt refunding using the proceeds of bonds issued in a previous year.
The June 30, 2014 Debt Service Fund balance totaled $18.83 million. Of this amount, $14.91 million is
restricted for the future refunding of the Series 2005A and Series 2005B Bonds, $3.43 million is available
for regular debt service, and the remaining $0.49 million is reserved for OPEB debt service needs.
NONMAJOR FUNDS
Expenditures exceeded revenues and other financing sources in the nonmajor funds by $78,525.
Food Service Special Revenue Fund
The Food Service Special Revenue Fund revenues and other financing sources for 2013–2014 totaled
$11.14 million and expenditures were $11.40 million, resulting in a decrease in the fund balance of
$0.26 million. The June 30, 2014 Food Service Special Revenue Fund balance is $2.38 million.
The 2013–2014 actual revenues were $0.35 million, or 3.27 percent, greater than the budgeted amount.
This increase is due to a combination of three factors, both positive and negative. During 2013–2014,
sales to students were $29,367 less than budget, while federal aids for the school lunch and breakfast
programs were $0.19 million more than projected. The increase in federal aid reimbursements is mainly
due to an increase in the per meal reimbursement rate, an additional 6 cents per lunch served for
complying with the federal Healthy Hunger-Free Kids Act of 2010, and more students qualified for
assistance. In addition, in 2013–2014, actual commodity cash rebates and the U.S. Department of
Agriculture (USDA) commodity received were $0.11 million more than budget.
The actual 2013–2014 Food Service Special Revenue Fund expenditures were $0.46 million, or
4.24 percent, more than the budgeted amount. The increase is mainly due to a combination of three
factors. During 2013–2014, actual expenditures for food, the USDA commodity, and milk were
$0.81 million more than budget. Actual capital expenditures, including building improvements,
equipment, and technology equipment, were $0.22 million less than budget.
Consistent with the food service comprehensive capital projects plan, the District will continue to use the
accumulated fund balance to fund routine state authorized equipment purchases and major capital
projects.
Community Service Special Revenue Fund
In 2013–2014, the total revenues and other financing sources for the Community Service Special Revenue
Fund were $9.94 million and the total expenditures were $9.75 million, resulting in an increase to fund
balance of $0.19 million. The Community Service Special Revenue Fund balance as of June 30, 2014 is
$1.39 million. Of this amount, $0.59 million is restricted for community education programs,
$0.45 million is restricted for the Adult Basic Education Program, $0.31 million is restricted for the Early
Childhood Family Education Program, $32,088 is restricted for the School Readiness Program, $1,616 is
restricted for community services, and $950 is nonspendable for prepaid items.
-21-
INTERNAL SERVICE FUNDS
The District maintains four internal service funds. The Severance Benefits Internal Service Fund is used
to fund severance or retirement pay for eligible retirees. For 2013–2014, the revenues for this fund
include interest income from short-term investments and contributions paid from the District’s
governmental funds. The severance pay liabilities for the District on June 30, 2014 totaled $13.50 million,
and the net position of the fund was a deficit $4.02 million.
The OPEB Benefits Internal Service Fund accounts for assets contributed to a revocable trust used by the
District to finance its OPEB liabilities and the proceeds from the $37.44 million general obligation
taxable OPEB bonds issued in January 2009. The net OPEB obligation liability for the District at June 30,
2014 was $16.57 million, and the net position of the fund was $32.81 million. The net OPEB obligation
liability recorded in the fund represents the cumulative excess of the actuarially determined annual
required contributions over the actual OPEB costs paid by the District through the current year-end. The
District’s total unfunded actuarial accrued liability, as determined in its most recent actuarial study dated
July 1, 2012, was $45.12 million.
The Self-Insured Dental Benefits Internal Service Fund was established to report all activities related to
the District’s self-insured dental benefits plan. This plan covers all non-bargained staff, as well as
principals, building chiefs, and vehicle technicians. The total contributions (both district and employee)
for 2013–2014 totaled $0.28 million, and claims paid or accrued totaled $0.31 million, resulting in net
position decreasing $0.03 million to $0.08 million at year-end.
The Self-Insured Health Benefits Internal Service Fund was established to report all activities related to
the District’s self-insured health benefits plan. This plan covers all district employees. The total
contributions (both district and employee) to the plan for 2013–2014 totaled $40.85 million, and claims
paid or accrued totaled $36.24 million, resulting in net position increasing $4.61 to $9.13 million at
year-end.
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
At year-end, the District has net capital assets of $218.58 million representing a broad range of capital
assets, including school buildings; athletic facilities; and computer, audio-visual, and other equipment for
instructional programs (see Table 9). Total depreciation expense for the year was $13.07 million.
During 2013–2014, the District invested a total of $13.29 million in buildings, furniture and equipment,
and construction in progress. The majority of the capital investment can be attributed to major
maintenance and building improvement projects approved by the state and funded by alternative facilities
levy revenue, health and safety and operating capital revenues, and proceeds from the Series 2013B
Certificates of Participation. Proceeds for this issuance are being used to fund the construction of Dakota
Valley Learning Center, which will house the District’s early childhood and adult education programs.
Table 9
Capital Assets
2014
Land
Land improvements
Buildings
Furniture and equipment
Construction in progress
Less accumulated depreciation
Total
$
8,870,712
12,841,906
348,679,229
50,318,134
7,619,954
(209,752,400)
$ 218,577,535
-22-
2013
$
8,870,712
11,616,641
347,052,329
48,344,708
425,007
(198,300,948)
$ 218,008,449
Percent Change
2013–2014
–
10.55%
0.47%
4.08%
1,692.90%
5.77%
0.26%
LONG-TERM LIABILITIES
At year-end, the District had $115.66 million in bonds, refunding bonds, and certificates of participation
outstanding. This is a decrease of $26.15 million from the previous year, as shown in Table 10.

Outstanding bonds show a net decrease of $39.70 million, mainly due to the retirement of
existing debt and the payment of one refunding bond issue (as described in previous sections).
The District continues to make required scheduled payments.

In December 2013, the District issued $13.71 million Series 2013B Certificates of Participation to
fund the construction of Dakota Valley Learning Center. This building will house the District’s
early childhood and adult education programs.

During 2013–2014, the District retired $1.23 million of existing capital lease principal.
Table 10
Outstanding Long-Term Liabilities
2014
General obligation bonds
General obligation refunding bonds
Capital leases payable
Certificates of participation
Severance benefits payable
Accrued vacation payable
Net OPEB obligation
Premium (discount) on bonds
$
51,730,000
47,975,000
7,594,863
15,955,000
13,499,565
3,436,701
16,570,564
4,270,288
$ 161,031,981
2013
$
Percent Change
2013 to 2014
90,175,000
49,230,000
8,723,698
2,400,000
13,497,475
3,312,916
14,737,956
3,959,162
(42.63%)
(2.55%)
(12.94%)
564.79%
0.02%
3.74%
12.43%
7.86%
$ 186,036,207
(13.44%)
Bond Ratings
The District’s general obligation bonds carry a rating of
Aa1, upgraded by Moody’s Investors Service in
April 2010, and confirmed in May 2014.
Limitation on Debt
The state limits the amount of general obligation debt the
District can issue up to 15 percent of actual market value of
all taxable property within the District’s boundaries. The
estimated market value of all taxable property is $13.09
billion for calendar year 2014 and the District’s debt limit
is $1.96 billion.
The District’s outstanding debt is significantly below this
limit. The District’s outstanding debt as of June 30, 2014
is $99.71 million. The amount that is applicable to the debt
limit calculation is $80.87 million (total outstanding debt
less Debt Service Fund balance).
Additional details of the District’s capital assets and long-term debt activity can be found in the notes to
basic financial statements.
-23-
FACTORS BEARING ON THE DISTRICT’S FUTURE
With the exception of the voter-approved operating referendum and building bond referendum, the
District is dependent on the state of Minnesota for its revenue authority.
The state’s budget outlook has improved steadily since 2012 and during the 2013–2014 school year, the
state used its budget reserve to “buy back” outstanding school aid payments shifts in 2012–2013. In
addition, the state has returned school districts to a 90 percent in the current year and 10 percent in the
subsequent year state aid payment schedule and used the remaining budget reserve to reduce the school
district property tax recognition shift.
The 2013 Legislature also provided the equivalent of 1.5 percent and 2.0 percent per pupil unit annual
increases to the basic general education formula allowance for the 2013–2014 and 2014–2015 school
years, respectively, and new funding for full-day kindergarten.
The District appreciates and welcomes the additional funding. However, with funding not sufficient to
keep pace with inflation over the past decade, steady student enrollment and the costs of educating our
students continuing to rise, and the financial outlook for the District continues to present challenges.
State funding for education has not kept pace with inflation for the past decade. Increases to the basic
general education formula allowance for the past six years was 5 percent; a less than 1 percent increase
per year and significantly less than inflation.
The District is committed to continuing to engage parents, staff, and business and community members in
further budget adjustment discussions and to consider other options for increasing revenues.
The administration appreciates the continued support from the community and is committed to continuing
to monitor its spending and striving to maintain sustainable operations.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This CAFR is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the District’s finances and to demonstrate the District’s accountability for the money
it receives. If you have questions about this report or need additional financial information, contact the
Finance Department, Independent School District No. 196, Rosemount – Apple Valley – Eagan Public
Schools, 3455 – 153rd Street West, Rosemount, Minnesota 55068.
-24-
BASIC FINANCIAL STATEMENTS
-25-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Net Position
as of June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
Governmental Activities
2014
2013
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Inventory
Prepaid items
$ 110,478,025
$
80,283,751
42,876,055
733,788
530,152
29,325,539
854,878
257,716
41,466,496
981,964
417,577
35,558,869
917,935
186,166
Restricted assets – temporarily restricted
Cash and investments for other post-employment benefits
Cash and investments for construction
Cash and investments for debt service
Interest receivable for debt service
49,380,030
9,065,980
15,027,385
25,635
44,268,264
103
40,065,344
24,142
Capital assets
Not depreciated
Depreciated, net of accumulated depreciation
Total capital assets, net of accumulated depreciation
16,490,666
202,086,869
218,577,535
9,295,719
208,712,730
218,008,449
$ 477,132,718
$ 462,179,060
$
$
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Accrued interest payable
Due to other governmental units
Unearned revenue
Long-term liabilities
Due within one year
Due in more than one year
Total long-term liabilities
Total liabilities
Deferred inflows of resources
Property taxes levied for subsequent year
Net position
Net investment in capital assets
Restricted for
Capital asset acquisition
Debt service
Other purposes (state funding restrictions)
Unrestricted
Total net position
Total liabilities, deferred inflows of resources, and net position
See notes to basic financial statements
-26-
18,271,343
24,080,947
1,753,533
3,085,145
7,321,126
17,778,132
20,508,858
2,035,053
3,121,151
7,349,788
24,381,546
136,650,435
161,031,981
47,195,336
138,840,871
186,036,207
215,544,075
236,829,189
75,112,544
46,737,284
148,790,976
140,892,970
3,109,569
3,146,047
3,665,502
27,764,005
186,476,099
1,546,791
3,048,044
3,899,144
29,225,638
178,612,587
$ 477,132,718
$ 462,179,060
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Activities
Year Ended June 30, 2014
(With Partial Comparative Information for the Year Ended June 30, 2013)
2014
Functions/Programs
Governmental activities
Administration
District support services
Elementary and secondary
regular instruction
Vocational education
instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost
programs
Food service
Community service
Unallocated depreciation
expense
Interest and fiscal charges
Total governmental
activities
Expenses
$ 12,788,255
8,478,285
Net (Expense)
Revenue and
Changes in
Net Position
2013
Net (Expense)
Revenue and
Changes in
Net Position
Governmental
Activities
Governmental
Activities
–
–
$ (12,788,255)
(8,262,007)
$ (11,432,572)
(8,081,401)
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions
$
–
112,285
$
–
103,993
$
150,639,805
6,289,085
6,890,993
32,132
(137,427,595)
(133,706,331)
3,894,552
60,005,088
16,554,014
22,561,249
25,311,941
17,675
271,959
44,434
1,190,359
123,572
818,513
33,248,434
72,925
818,988
–
–
–
–
–
71,545
(3,058,364)
(26,484,695)
(16,436,655)
(20,551,902)
(25,116,824)
(3,090,270)
(25,243,262)
(16,160,379)
(20,224,990)
(23,528,919)
697,917
11,359,961
9,802,212
–
6,519,363
5,759,982
–
4,620,675
1,521,775
–
–
–
(697,917)
(219,923)
(2,520,455)
(598,093)
(12,639)
(2,768,712)
9,805,568
4,601,447
–
–
–
–
–
–
(9,805,568)
(4,601,447)
(10,385,661)
(5,894,160)
$ 336,500,294
$ 20,328,714
$ 48,096,296
103,677
(267,971,607)
(261,127,389)
24,660,338
850,036
6,020,570
18,533,559
218,035,675
2,329,934
5,405,007
275,835,119
47,579,360
1,658,474
6,637,900
19,463,752
191,800,239
2,841,805
3,286,674
273,268,204
7,863,512
12,140,815
178,612,587
166,471,772
$ 186,476,099
$ 178,612,587
General revenue
Taxes
Property taxes, levied for general purposes
Property taxes, levied for community service
Property taxes, levied for facility improvement
Property taxes, levied for debt service
General grants and aids
Other general revenues
Investment earnings
Total general revenues
Change in net position
Net position – beginning
Net position – ending
See notes to basic financial statements
-27-
$
INDEPENDENT SCHOOL DISTRICT NO. 196
Balance Sheet
Governmental Funds
as of June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
General Fund
Assets
Cash and temporary investments
Cash and investments held by trustee
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Due from other funds
Inventory
Prepaid items
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Due to other funds
Unearned revenue
Total liabilities
$
62,232,478
137,506
Capital Projects –
Building
Construction Fund
$
31,451,667
527,065
396,557
28,884,728
–
697,647
242,562
2,201,685
9,065,980
Debt
Service Fund
$
–
–
–
–
–
–
–
12,564,179
14,889,879
10,505,288
190,531
25,635
40,432
235
–
–
$
124,570,210
$
11,267,665
$
38,216,179
$
17,712,851
17,762,796
3,083,869
235
113,255
38,673,006
$
–
3,114,929
–
–
–
3,114,929
$
–
–
–
–
–
–
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
527,065
54,239,253
54,766,318
–
–
–
190,531
19,194,019
19,384,550
Fund balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
940,209
3,010,821
8,451,360
18,728,496
31,130,886
–
8,152,736
–
–
8,152,736
–
18,831,629
–
–
18,831,629
Total liabilities, deferred inflows of
resources, and fund balances
$
124,570,210
See notes to basic financial statements
-28-
$
11,267,665
$
38,216,179
Total Governmental Funds
2014
2013
Nonmajor Funds
$
5,552,188
–
$
919,100
16,192
107,426
400,379
–
157,231
15,154
82,550,530
24,093,365
$
42,876,055
733,788
529,618
29,325,539
235
854,878
257,716
57,183,720
40,065,447
41,466,496
981,964
422,298
35,558,869
14,171
917,935
186,166
$
7,167,670
$
181,221,724
$
176,797,066
$
558,492
487,223
1,276
–
661,226
1,708,217
$
18,271,343
21,364,948
3,085,145
235
774,481
43,496,152
$
17,778,132
17,913,061
3,121,151
14,171
900,798
39,727,313
$
16,192
1,679,272
1,695,464
733,788
75,112,544
75,846,332
981,964
46,737,284
47,719,248
172,385
3,591,604
–
–
3,763,989
1,112,594
33,586,790
8,451,360
18,728,496
61,879,240
1,104,101
51,060,231
20,341,273
16,844,900
89,350,505
7,167,670
$
181,221,724
$
176,797,066
-29-
-30-
INDEPENDENT SCHOOL DISTRICT NO. 196
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
as of June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
Total fund balances – governmental funds
2014
2013
$ 61,879,240
$ 89,350,505
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets are included in net position, but are excluded from fund balances
because they do not represent financial resources.
Cost of capital assets
Accumulated depreciation
428,329,935
(209,752,400)
416,309,397
(198,300,948)
Long-term liabilities are included in net position, but are excluded from fund
balances until due and payable. Debt issuance premiums and discounts are
excluded from net position until amortized, but are included in fund balances
upon issuance as other financing sources and uses.
General obligation bonds payable
Certificates of participation payable
Capital leases payable
Accrued vacation payable
(Premium) discount on bonds
(99,705,000)
(15,955,000)
(7,594,863)
(3,436,701)
(4,270,288)
(139,405,000)
(2,400,000)
(8,723,698)
(3,312,916)
(3,959,162)
Accrued interest payable on long-term debt is included in net position, but is
excluded from fund balances until due and payable.
(1,753,533)
(2,035,053)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service
funds are included in the governmental activities in the Statement of Net
Position.
38,000,921
30,107,498
Certain revenues (including delinquent property taxes) are included in net
position, but are excluded from fund balances until they are available to
liquidate liabilities of the current period.
733,788
981,964
$ 186,476,099
$ 178,612,587
Total net position – governmental activities
See notes to basic financial statements
-31-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2014
(With Partial Comparative Information for the Year Ended June 30, 2013)
General Fund
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
$
Expenditures
Current
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Capital outlay
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenue over expenditures
30,849,978
179,260
12,397,513
248,498,788
7,811,310
299,736,849
Capital Projects –
Building
Construction Fund
$
–
1,500
71,545
–
–
73,045
Debt
Service Fund
$
18,606,558
69,110
–
3,135
–
18,678,803
12,662,675
8,245,964
151,453,547
3,899,432
60,749,987
16,734,739
23,318,080
22,906,580
697,917
–
50,253
–
–
–
–
–
–
–
–
–
–
–
–
13,216,876
–
–
–
–
–
–
–
–
–
–
–
–
1,380,404
376,005
302,475,583
–
–
13,216,876
15,080,000
4,521,769
19,601,769
(2,738,734)
(13,143,831)
Other financing sources (uses)
Refunding bonds issued
Capital lease
Certificates of participation
Debt issuance premiums
Bond refunding payments
Sale of capital assets
Transfers in
Transfers (out)
Total other financing sources (uses)
–
96,569
137,506
–
–
8,143
–
(6,128,424)
(5,886,206)
–
–
13,572,494
185,525
–
–
6,020,570
–
19,778,589
2,230,000
–
–
140,408
(26,850,000)
–
–
–
(24,479,592)
Net change in fund balances
(8,624,940)
6,634,758
(25,402,558)
39,755,826
1,517,978
44,234,187
Fund balances
Beginning of year
$
End of year
See notes to basic financial statements
-32-
31,130,886
$
8,152,736
(922,966)
$
18,831,629
Total Governmental Funds
2014
2013
Nonmajor Funds
$
856,143
4,375
12,358,017
3,441,988
4,312,000
20,972,523
$
$
75,534,830
183,896
24,762,575
224,715,822
12,289,808
337,486,931
–
–
–
–
–
–
–
–
–
11,253,357
9,734,182
171,363
12,662,675
8,245,964
151,453,547
3,899,432
60,749,987
16,734,739
23,318,080
22,906,580
697,917
11,253,357
9,784,435
13,388,239
11,685,219
8,303,655
146,884,786
3,860,595
57,700,284
16,120,814
22,686,884
22,380,519
598,093
10,707,855
9,772,281
6,200,964
–
–
21,158,902
16,460,404
4,897,774
356,453,130
16,871,223
5,368,621
339,141,793
(186,379)
(16,991,910)
(1,654,862)
–
–
–
–
–
–
107,854
–
107,854
2,230,000
96,569
13,710,000
325,933
(26,850,000)
8,143
6,128,424
(6,128,424)
(10,479,355)
12,100,000
–
–
811,026
–
404,526
6,749,505
(7,456,023)
12,609,034
(78,525)
(27,471,265)
10,954,172
89,350,505
78,396,333
3,842,514
$
50,312,679
254,245
24,827,075
251,943,911
12,123,310
339,461,220
3,763,989
$
61,879,240
$
89,350,505
-33-
-34-
INDEPENDENT SCHOOL DISTRICT NO. 196
Reconciliation of the Statement of
Revenue, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
Year Ended June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
2014
Total net change in fund balances – governmental funds
$
(27,471,265)
2013
$ 10,954,172
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays are recorded as assets in the Statement of Net Position, and the cost is allocated over
their estimated useful lives as depreciation expense. However, fund balances are reduced for the full
cost of capital outlays at the time of purchase.
Capital outlays
Depreciation expense
13,285,256
(12,406,640)
6,999,335
(13,119,746)
A gain or loss on the disposal of capital assets, including the difference between the carrying value and
any related sale proceeds, is included in the change in net position. However, only the sale proceeds are
included in the change in fund balances.
(309,530)
(192,902)
The amount of debt issued is reported in the governmental funds as a source of financing. Debt
obligations are not revenues in the Statement of Activities, but rather constitute long-term liabilities.
(16,036,569)
(12,100,000)
Repayment of long-term debt does not affect the change in net position. However, it reduces fund
balances.
General obligation bonds and certificates of participation
Capital leases
42,085,000
1,225,404
15,685,000
1,186,223
Interest on long-term debt is included in the change in net position as it accrues, regardless of when
payment is due. However, it is included in the change in fund balances when due.
281,520
Debt issuance premiums and discounts are included in the change in net position as they are amortized
over the life of the debt. However, they are included in the change in fund balances upon issuance as
other financing sources and uses.
(311,126)
(1,165,673)
Certain expenses are included in the change in net position, but do not require the use of current funds,
and are not included in the change in fund balances.
Accrued vacation payable
(123,785)
(185,236)
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The change in net position of the internal service funds is included in the governmental activities
in the Statement of Activities.
7,893,423
Certain revenues (including delinquent property taxes) are included in the change in net position, but
are excluded from the change in fund balances until they are available to liquidate liabilities of the
current period.
(248,176)
$
Change in net position – governmental activities
See notes to basic financial statements
-35-
7,863,512
(170,892)
4,445,878
(195,344)
$ 12,140,815
-36-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
General Fund
Year Ended June 30, 2014
Budgeted Amounts
Original
Final
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Administration
District support services
Elementary and secondary regular
instruction
Vocational education instruction
Special education instruction
Community service
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenue over expenditures
Other financing sources (uses)
Capital lease
Certificates of participation
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Actual
Over (Under)
Final Budget
$ 53,571,532
–
9,391,139
221,645,810
8,529,901
293,138,382
$ 53,566,923
80,000
10,615,098
224,836,890
8,072,956
297,171,867
$ 30,849,978
179,260
12,397,513
248,498,788
7,811,310
299,736,849
$ (22,716,945)
99,260
1,782,415
23,661,898
(261,646)
2,564,982
12,327,836
11,131,293
13,204,776
10,820,638
12,662,675
8,245,964
(542,101)
(2,574,674)
153,167,929
3,936,043
60,136,399
–
14,583,686
23,749,076
22,734,712
781,771
154,415,275
3,912,478
59,802,228
2,057
14,202,108
23,898,142
23,142,526
781,771
151,453,547
3,899,432
60,749,987
50,253
16,734,739
23,318,080
22,906,580
697,917
(2,961,728)
(13,046)
947,759
48,196
2,532,631
(580,062)
(235,946)
(83,854)
1,373,270
380,205
304,302,220
1,373,270
380,205
305,935,474
1,380,404
376,005
302,475,583
7,134
(4,200)
(3,459,891)
(11,163,838)
(8,763,607)
(2,738,734)
6,024,873
–
–
–
(6,146,088)
(6,146,088)
–
–
–
(6,146,088)
(6,146,088)
96,569
137,506
8,143
(6,128,424)
(5,886,206)
96,569
137,506
8,143
17,664
259,882
$ (17,309,926)
$ (14,909,695)
(8,624,940)
Fund balances
Beginning of year
39,755,826
$ 31,130,886
End of year
See notes to basic financial statements
-37-
$
6,284,755
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Net Position
Internal Service Funds
as of June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
2014
Assets
Current assets
Cash and temporary investments
Receivables
Accounts and interest
Restricted assets
Cash and cash equivalents
Investments
Total assets
$
Liabilities
Current liabilities
Severance benefits payable
Claims payable
Unearned revenue
Total current liabilities
Long-term liabilities
Severance benefits payable
Net obligation for other post-employment benefits
Total long-term liabilities
Total liabilities
Net position
Restricted for other post-employment benefits
Unrestricted
Total net position
$
See notes to basic financial statements
-38-
27,927,495
2013
$
23,100,031
26,169
19,421
32,728,523
16,651,507
77,333,694
30,053,670
14,214,594
67,387,716
3,486,487
2,715,999
6,546,645
12,749,131
3,278,001
2,595,797
6,448,990
12,322,788
10,013,078
16,570,564
26,583,642
10,219,474
14,737,956
24,957,430
39,332,773
37,280,218
32,809,466
5,191,455
29,530,308
577,190
38,000,921
$
30,107,498
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Revenue, Expenses, and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
2014
Operating revenue
Local sources
Contributions from governmental funds
Contributions from employees
Total operating revenue
$
Operating expenses
Severance benefits
Other post-employment benefits
Self-insured benefits
Total operating expenses
Operating income
Nonoperating revenue
Investment earnings
Income before transfers
Transfers
Change in net position
Net position
Beginning of year
$
End of year
See notes to basic financial statements
-39-
2013
40,250,350
5,460,365
45,710,715
$
35,362,969
5,504,386
40,867,355
951,131
5,462,592
36,554,331
42,968,054
1,478,659
5,505,012
33,247,102
40,230,773
2,742,661
636,582
5,150,762
3,102,778
7,893,423
3,739,360
–
706,518
7,893,423
4,445,878
30,107,498
25,661,620
38,000,921
$
30,107,498
-40-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
2014
Cash flows from operating activities
Received from assessments made to other funds
Received from employee contributions
Severance, other post-employment benefits,
and self-insurance claims
Net cash flows from operating activities
$
2013
40,348,225
5,460,365
$
(41,013,154)
4,795,436
Cash flows from noncapital financing activities
Transfers from other funds
(34,403,946)
12,912,179
–
Cash flows from investing activities
Purchase of investments
Sale of investments
Interest on investments
Net cash flows from investing activities
Net change in cash and cash equivalents
Cash and cash equivalents
Beginning of year
End of year
Reconciliation of operating income to net
cash flows from operating activities
Operating income
Adjustments to reconcile operating income
to net cash flows from operating activities
Changes in assets and liabilities
Accounts receivable
Severance benefits payable
Net obligation for other post-employment benefits
Claims payable
Unearned revenue
Net cash flows from operating activities
-41-
706,518
(6,500,250)
4,063,337
5,143,794
2,706,881
(5,849,531)
11,571,275
3,094,146
8,815,890
7,502,317
22,434,587
53,153,701
30,719,114
$
60,656,018
$
53,153,701
$
2,742,661
$
636,582
220
2,090
1,832,608
120,202
97,655
$
See notes to basic financial statements
41,811,739
5,504,386
4,795,436
(220)
795,274
2,441,795
2,589,758
6,448,990
$
12,912,179
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Fiduciary Net Position
Fiduciary Funds
as of June 30, 2014
Employee
Benefit
Trust Fund
Assets
Current assets
Cash and temporary investments
$
Scholarship
Private-Purpose
Trust Fund
418,149
Liabilities
Current liabilities
Accounts and contracts payable
$
–
Net position
Held in trust for employee benefits and other purposes
$
418,149
$
21,615
$
140,215
–
$
140,215
21,615
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2014
Employee
Benefit
Trust Fund
Additions
Contributions
From plan members
$
Deductions
Employee benefits
Scholarships
Total deductions
1,504,185
Scholarship
Private-Purpose
Trust Fund
$
1,420,979
–
1,420,979
Change in net position
Net position
Beginning of year
$
End of year
See notes to basic financial statements
-42-
–
–
1,000
1,000
83,206
(1,000)
334,943
22,615
418,149
$
Agency
Funds
21,615
INDEPENDENT SCHOOL DISTRICT NO. 196
Notes to Basic Financial Statements
Year Ended June 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
Independent School District No. 196 (the District) was formed and operates pursuant to applicable
Minnesota laws and statutes. The District is governed by a seven-member School Board elected by voters
of the District to serve four-year terms. The District’s financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of America as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles.
B. Reporting Entity
The accompanying financial statements include all funds, departments, agencies, boards, commissions,
and other organizations that comprise the District, along with any component units.
Component units are legally separate entities for which the District (primary government) is financially
accountable, or for which the exclusion of the component unit would render the financial statements of
the primary government misleading. The criteria used to determine if the primary government is
financially accountable for a component unit includes whether or not the primary government appoints
the voting majority of the potential component unit’s governing body, is able to impose its will on the
potential component unit, is in a relationship of financial benefit or burden with the potential component
unit, or is fiscally depended upon by the potential component unit. Based on these criteria, there are no
organizations considered to be component units of the District.
In addition to component units, the District is required to disclose its relationships with related
organizations. The District is a member of Technology and Information Educational Services (TIES), a
consortium of Minnesota school districts that provides data processing services and support to its member
districts. TIES is a separate legal entity that is financially independent of the District. Further, the District
does not appoint a voting majority of TIES’ Board of Directors. Therefore, TIES is not included as part of
the District’s reporting entity. During the fiscal year ended June 30, 2014, the District paid TIES
$1,191,717 for services provided.
Extracurricular student activities are determined primarily by student participants under the guidance of
an adult and are generally conducted outside of school hours. In accordance with Minnesota Statutes, the
District’s School Board has elected not to control or be otherwise financially accountable with respect to
the underlying extracurricular activities. Accordingly, the extracurricular student activity accounts are not
included in these financial statements.
C. Government-Wide Financial Statement Presentation
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all the financial
activities of the District, except for the fiduciary funds. Generally, the effect of material interfund activity
has been removed from the government-wide financial statements.
-43-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include charges to customers or applicants who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function or segment and
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other internally directed revenues are reported instead as
general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes are generally
recognized as revenues in the fiscal year for which they are levied, except for amounts advance
recognized in accordance with a statutory “tax shift” described later in these notes. Grants and similar
items are recognized when all eligibility requirements imposed by the provider have been met.
For capital assets that can be specifically identified with, or allocated to functional areas, depreciation
expense is included as a direct expense in the functional areas that utilize the related capital assets. For
capital assets that essentially serve all functional areas, depreciation expense is reported as “unallocated
depreciation expense.” Interest on long-term debt is considered an indirect expense and is reported
separately on the Statement of Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental, proprietary, and fiduciary funds. Major
individual governmental funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements. The proprietary (internal service) funds are presented in the proprietary
fund financial statements. Because the principal users of the internal services are the District’s
governmental activities, the financial statements of the proprietary (internal service) funds are
consolidated into the governmental activities in the government-wide financial statements. The cost of
these services is reported in the appropriate functional activity. Fiduciary funds are presented in the
fiduciary fund financial statements by type: pension (or other benefit) trust, private-purpose trust, and
agency. Since, by definition, fiduciary fund assets are being held for the benefit of a third party and
cannot be used for activities or obligations of the District, these funds are excluded from the
government-wide statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting transactions are
recorded in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the District generally considers revenues to be available if they
are collected within 60 days after year-end. Grants and similar items are recognized when all
eligibility requirements imposed by the provider have been met. State revenue is recognized in
the year to which it applies according to Minnesota Statutes (which include state aid funding
formulas for specific fiscal years) and accounting principles generally accepted in the United
States of America. Proceeds of long-term debt and acquisitions under capital leases are reported
as other financing sources.
-44-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt, compensated absences, severance and other
post-employment benefits (OPEB), which are recognized as expenditures to the extent they have
matured. Capital asset acquisitions are reported as capital outlay expenditures in the
governmental funds. In the General Fund, capital outlay expenditures are included within the
applicable functional areas.
Proprietary and fiduciary funds use the accrual basis of accounting as described earlier in these notes.
Proprietary and trust funds are reported using the economic resources measurement focus.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the
District’s internal service funds are charges to other district funds for services. Operating expenses for the
Internal Service Fund include the cost of providing the services. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Description of Funds
The existence of the various district funds has been established by the Minnesota Department of
Education. Each fund is accounted for as an independent entity. Descriptions of the funds included in this
report are as follows:
Major Governmental Funds
General Fund – The General Fund is used to account for all financial resources except those required
to be accounted for in another fund. The District maintains three accounts within the General Fund:
Operating Account – The Operating Account is used to account for the general operations of the
District.
Pupil Transportation Account – The Pupil Transportation Account is used to account for pupil
transportation activities of the District.
Capital Expenditure Account – The Capital Expenditure Account is used to account for the
maintenance of facilities, equipment purchases, health and safety projects, and disabled
accessibility projects.
Capital Projects – Building Construction Fund – The Capital Projects – Building Construction
Fund is used to account for financial resources used for the acquisition or construction of major
capital facilities authorized by bond issue or capital project levies.
Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources
for, and payment of, general obligation long-term debt principal, interest, and related costs. The
District maintains a separate OPEB account within the Debt Service Fund to account for
OPEB-related debt activity. All other debt service is recorded in the General Debt Service Account.
-45-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Nonmajor Governmental Funds
Food Service Special Revenue Fund – The Food Service Special Revenue Fund is primarily used to
account for the District’s child nutrition program.
Community Service Special Revenue Fund – The Community Service Special Revenue Fund is
used to account for services provided to residents in the areas of recreation, civic activities, nonpublic
pupils, adult or early childhood programs, or other similar services.
Proprietary Funds
Internal Service Funds – Internal service funds account for the financing of goods or services
provided by one department to other departments or agencies of the government, or to other
governments, on a cost-reimbursement basis. The District has established four internal service funds
to account for the District’s liabilities for severance benefits, OPEB, self-insured dental benefits, and
self-insured health benefits.
Fiduciary Funds
Employee Benefit Trust Fund – The District maintains an Employee Benefit Trust Fund used to
administer resources received and held by the District as the trustee for employees participating in the
District’s flexible benefit plan (Internal Revenue Code § 125 Cafeteria Plan).
Scholarship Private-Purpose Trust Fund – The Scholarship Private-Purpose Trust Fund is used to
account for resources held in trust to be used by various other third parties to award scholarships to
students.
Agency Funds – Agency funds are established to account for cash and other assets held by the
District as the agent for others. The District maintains two agency funds used to account for a
Graduate Credit Program (a continuing education program organized for the benefit of district
certified staff) and Local Collaborative Time Study (LCTS) grant funds.
E. Budgeting
The School Board adopted annual budgets for the General Fund (including separate budgets for the
Operating, Pupil Transportation, and Capital Expenditure Accounts), Food Service Special Revenue,
Community Service Special Revenue, Capital Projects – Building Construction, and Debt Service Funds
(including separate budgets for the General Account and OPEB Account). The budget for each fund is
prepared on the same basis of accounting as the fund financial statements. Legal budgetary control is at
the fund level. All appropriations lapse at year-end. Actual expenditures for the year ended June 30, 2014
exceeded budget in the Food Service Special Revenue Fund by $463,630, and the Debt Service Fund –
General Account by $735,356.
F. Cash and Temporary Investments
Cash and temporary investments include balances from all funds that are combined and invested to the
extent available in various securities as authorized by state law. Earnings from the pooled investments are
allocated to the respective funds on the basis of applicable cash balance participation by each fund.
Earnings from the investments of the Capital Projects – Building Construction Fund, the Debt Service
Fund, and all trust funds are allocated directly to those funds/accounts.
-46-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash and investments include balances held in segregated accounts established for specific purposes. In
the General Fund and Capital Projects – Building Construction Fund, this represents proceeds from
certificates of participation held by trustee available for future debt service or the renovation of an
existing district building, respectively. In the Debt Service Fund, this includes assets held in an escrow for
a future bond refunding. In the OPEB Internal Service Fund, this includes assets held in a revocable trust
established to finance the District’s OPEB liability. Investment income for these investments are allocated
directly to these funds. In the government-wide financial statements, these accounts are reported as
restricted assets.
For purposes of the Statement of Cash Flows, the District considers all highly liquid debt instruments
with an original maturity from the time of purchase by the District of three months or less to be cash
equivalent. The proprietary fund’s equity in the government-wide cash and investment management pool
is considered to be cash equivalent.
Investments are generally stated at fair value, except for investments in 2a7-like external investment
pools, which are stated at amortized cost. Short-term, highly liquid debt instruments (including
commercial paper, bankers’ acceptance, and U.S. treasury and agency obligations) purchased with a
remaining maturity of one year or less are also reported at amortized cost. Investment income is accrued
at the balance sheet date.
G. Receivables
When necessary, the District utilizes an allowance for uncollectible accounts to value its receivables.
However, the District considers all of its current receivables to be collectible. The only receivables not
expected to be fully collected within one year are delinquent property taxes receivable.
Amounts due from other governmental units at June 30, 2014 consist of the following:
General
Governmental Funds
Debt Service
Nonmajor
Total
Due from Minnesota Department of Education
Due from federal government
Due from Dakota County
$ 28,621,429
13,260
250,039
$
313
–
40,119
$
396,624
–
3,755
$ 29,018,366
13,260
293,913
Total due from other governmental units
$ 28,884,728
$
40,432
$
400,379
$ 29,325,539
H. Inventories
Inventories are recorded using the consumption method of accounting and consist of purchased food,
supplies, and surplus commodities received from the federal government. Food and supply purchases are
recorded at invoice cost, computed on a first-in, first-out method. Surplus commodities are stated at
standardized costs, as determined by the U.S. Department of Agriculture.
I.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. Prepaid items are recorded as expenditures/expenses at the time of consumption.
-47-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Property Taxes
The majority of the District’s revenue in the General Fund is determined annually by statutory funding
formulas. The total revenue allowed by these formulas is allocated between property taxes and state aids
by the Legislature based on education funding priorities.
Generally, property taxes are recognized as revenue by the District in the fiscal year that begins midway
through the calendar year in which the tax levy is collectible. To help balance the state budget, the
Minnesota Legislature utilizes a tool referred to as the “tax shift,” which periodically changes the
District’s recognition of property tax revenue. The tax shift advance recognizes cash collected for the
subsequent year’s levy as current year revenue, allowing the state to reduce the amount of aid paid to the
District. Currently, the mandated tax shift recognizes $3,225,512 of the property tax levy collectible in
2014 as revenue to the District in fiscal year 2013–2014. The remaining portion of the taxes collectible in
2014 is recorded as a deferred inflow of resources (property taxes levied for the subsequent year).
Property tax levies are certified by the County Auditor in December of each year for collection from
taxpayers in May and October of the following calendar year. In Minnesota, counties act as collection
agents for all property taxes. The county spreads all levies over taxable property. Such taxes become a
lien on property on the following January 1. The county generally remits taxes to the District at periodic
intervals as they are collected.
Taxes which remain unpaid are classified as delinquent taxes receivable. Revenue from these delinquent
property taxes that is not collected within 60 days of year-end is reported as a deferred inflow of resources
(unavailable revenue) in the governmental fund financial statements because it is not considered to be
available to finance the current operations of the District.
K. Capital Assets
Capital assets are capitalized at historical cost, or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at their estimated fair market value at the date of donation. The
District defines capital assets as those with an initial, individual cost of $2,500 or more, which benefit
more than one fiscal year. The cost of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide financial statements, but are not reported in the fund
financial statements. Capital assets are depreciated using the straight-line method over their estimated
useful lives. Since assets are generally sold for an immaterial amount or scrapped when no longer fit or
needed for public school purposes by the District, no salvage value is taken into consideration for
depreciation purposes. Useful lives vary from 20 to 50 years for land improvements and buildings, and
5 to 15 years for furniture and equipment. Land and construction in progress are not depreciated.
The District does not possess material amounts of infrastructure capital assets, such as sidewalks or
parking lots. Such items are considered to be part of the cost of buildings or other improvable property.
L. Interfund Balances and Transfers
The current portion of interfund balances representative of lending/borrowing arrangements outstanding
at year-end is reported as due to/due from other funds. Interfund balances and transfers are reported in the
fund financial statements, but are eliminated in the government-wide financial statements.
At June 30, 2014, the General Fund had a payable of $235 due to the Debt Service Fund to allocate
revenues to the appropriate fund.
-48-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
During the year, the District transferred $6,020,570 from the General Fund to the Capital Projects –
Building Construction Fund to allocate its alternative facilities levy to the fund from which it will be
spent, and $107,854 from the General Fund to the Community Service Special Revenue Fund to support
community service operations.
M. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported
as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources, while discounts on debt issuances are
reported as other financing uses.
N. Compensated Absences
Under the terms of collectively bargained contracts, eligible employees accrue vacation and sick leave at
varying rates, portions of which may be carried over to future years. Employees are reimbursed for any
unused, accrued vacation upon termination. Unused sick leave enters into the calculation of certain
termination payments for some employees. Compensated absences are accrued in governmental fund
financial statements only when used or matured prior to year-end due to employee termination or similar
circumstances, and are paid by the General Fund and nonmajor special revenue funds. Unused vacation
pay is accrued when incurred in the government-wide financial statements.
O. Severance Benefits
The District provides lump sum severance benefits to eligible employees in accordance with provisions of
certain collectively bargained contracts. Eligibility for these benefits is based on years of service and/or
minimum age requirements. Severance benefits are calculated by converting a portion of an eligible
employee’s unused accumulated sick leave. Severance benefits for any individual cannot exceed one
year’s salary.
Members of certain employee groups may also elect to receive district matching contributions paid into a
tax-deferred matching contribution plan established under Internal Revenue Service Code Section 403(b).
The amount of any severance benefits due to an individual is reduced by the total matching contributions
made by the District to such a plan over the course of that individual’s employment. If the District’s
403(b) matching contributions for an individual employee exceed the severance benefits due that
individual, the excess would then reduce any OPEB (described later in these notes) earned by that
individual.
Severance benefits are required to be paid out within 30 days following the effective date of retirement.
Severance benefits for eligible teachers are paid into a post-retirement healthcare savings plan
administered by the Minnesota State Retirement System. For other employees, severance benefits are paid
into a pay deferral plan or healthcare savings plan as directed by the individual retirees.
The District has established a separate internal service fund to account for its severance benefits liability.
Severance benefits payable, along with any related benefit costs, are accrued in the government-wide and
proprietary fund financial statements as they are earned and it becomes probable they will vest at some
point in the future.
-49-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Risk Management
1. General Insurance – The District is exposed to various risks of loss related to torts: theft of,
damage to, and destruction of assets; errors and omissions; natural disasters; and workers’
compensation for which it carries commercial insurance. Settled claims have not exceeded this
commercial coverage in any of the past three fiscal years. There were no significant reductions in
the District’s insurance coverage in fiscal year 2014.
2. Self-Insurance – The District has established two internal service funds to account for and
finance its uninsured risk of loss for respective employee dental and health insurance plans.
Under these plans, the internal service funds provide coverage to participating employees and
their dependents for various dental and healthcare costs as described in the plans.
The District makes premium payments to the internal service funds on behalf of program
participants based on provisional rates determined by insurance company estimates of monthly
claims paid for each coverage class, plus the stop-loss health insurance premium costs and
administrative service charges.
District claim liabilities are reported when it is probable that a loss has occurred and the amount
of that loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred, but not reported. Because actual claim liabilities depend on complex factors such as
inflation, changes in legal doctrines, and damage awards, the process used in computing a claim
liability does not necessarily result in an exact amount. Claim liabilities are evaluated periodically
to take into consideration recently settled claims, the frequency of claims, and other economic
and social factors.
Changes in the balance of dental claim liabilities for the last two years were as follows:
Fiscal Year
Ended
June 30,
2013
2014
Current
Year Claims
and Changes
in Estimates
Claims Payable
Beginning
of Year
$
$
6,039
8,424
$
$
278,842
313,130
Claims Payable
End of Year
Claim Payments
$
$
276,457
310,984
$
$
8,424
10,570
Changes in the balance for health insurance claim liabilites for the last two years were as follows:
Fiscal Year
Ended
June 30,
2013
2014
Current
Year Claims
and Changes
in Estimates
Claims Payable
Beginning
of Year
$
$
–
2,587,373
$
$
32,968,260
36,241,201
-50-
Claims Payable
End of Year
Claim Payments
$
$
30,380,887
36,123,145
$
$
2,587,373
2,705,429
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Q. Deferred Inflows of Resources
In addition to liabilities, statements of financial position or balance sheets will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The District has two types of items which qualify for reporting in this
category.
The first item, unavailable revenue from property taxes, arises under a modified accrual basis of
accounting and is reported only in the governmental funds Balance Sheet. Delinquent property taxes not
collected within 60 days of year-end are deferred and recognized as an inflow of resources in the
governmental funds in the period the amounts become available.
The second item is property taxes levied for subsequent years, which represent property taxes received or
reported as a receivable before the period for which the taxes are levied, and is reported as a deferred
inflow of resources in both the government-wide Statement of Net Position and the governmental funds
Balance Sheet. Property taxes levied for subsequent years are deferred and recognized as an inflow of
resources in the government-wide financial statements in the year for which they are levied, and in the
governmental fund financial statements during the year for which they are levied, if available.
R. Fund Balances
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:

Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.

Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.

Committed – Consists of internally imposed constraints that are established by resolution of the
School Board. Those committed amounts cannot be used for any other purpose unless the School
Board removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.

Assigned – Consists of internally imposed constraints. These constraints consist of amounts
intended to be used by the District for specific purposes but do not meet the criteria to be
classified as restricted or committed. In governmental funds, assigned amounts represent intended
uses established by the governing body itself or by an official to which the governing body
delegates the authority. Pursuant to School Board resolution, the District’s superintendent or other
designee is authorized to establish assignments of fund balance.

Unassigned – The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the District’s policy to first use
restricted resources, then use unrestricted resources as they are needed.
When committed, assigned, or unassigned resources are available for use, it is the District’s policy to use
resources in the following order: 1) committed, 2) assigned, and 3) unassigned.
-51-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources (if any), liabilities, and deferred inflows of resources. Net
position is displayed in three components:

Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.

Restricted – Consists of net position restricted when there are limitations imposed on their use
through external restrictions imposed by creditors, grantors, or laws or regulations of other
governments.

Unrestricted – All other net position that does not meet the definition of “restricted” or “net
investment in capital assets.”
The District applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
T. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenue and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
U. Net Position Deficit
At June 30, 2014, the Severance Benefits Internal Service Fund reported a deficit net position of
$4,021,929. This deficit will be eliminated through future contributions from the governmental funds.
V. Restricted Assets
Restricted assets are cash and cash equivalents and the related interest receivable whose use is limited by
legal requirements such as a bond indenture or trust agreement. Restricted assets are reported only in the
government-wide financial statements. In the fund financial statements these assets have been reported as
“cash and investments held by trustee” and the interest receivable is included within “accounts and
interest receivable.”
-52-
NOTE 2 – DEPOSITS AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits
Investments
Cash on hand
$
Total
15,946,964
168,576,221
8,214
$ 184,531,399
Cash and investments are presented in the financial statements as follows:
Statement of Net Position
Cash and temporary investments
Restricted assets – cash and investments for OPEB
Restricted assets – cash and investments for construction
Restricted assets – cash and investments for bond refunding
Statement of Fiduciary Net Position
Cash and temporary investments – Employee Benefit Trust Fund
Cash and temporary investments – Private-Purpose Trust Fund
Cash and temporary investments – Agency Fund
Total
$ 110,478,025
49,380,030
9,065,980
15,027,385
418,149
21,615
140,215
$ 184,531,399
B. Deposits
In accordance with applicable Minnesota Statutes, the District maintains deposits at depository banks
authorized by the School Board, including checking accounts, savings accounts, and non-negotiable
certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
District’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral.
The District’s deposit policies do not further limit depository choices.
At year-end, the bank balance and carrying amount of the District’s deposits were both $15,946,964.
All deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by
the District’s agent in the District’s name.
-53-
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
C. Investments
The District has the following investments at year-end:
Investment Type
Credit Risk
Rating Agency
State and local time deposits
(SLUGS)
U.S. agency securities
N/R
AA
N/A
S&P
Corporate obligations
Corporate obligations
Corporate obligations
Corporate obligations
Corporate obligations
Corporate obligations
Aaa
Aa
AA
A
A
Baa
Commercial paper
Commercial paper
Interest Risk – Maturity Duration in Years
Less Than 1
1 to 5
5 to 10
$
290,398
–
$ 12,270,383
1,987,126
Moody’s
Moody’s
S&P
Moody’s
S&P
Moody’s
–
–
251,405
512,700
353,343
–
A-1
P-1
S&P
Moody’s
Negotiable certificates of deposit
N/R
Equities
–
–
$ 12,560,781
1,987,126
418,870
307,221
1,117,399
5,178,856
5,478,799
819,076
226,712
–
–
–
–
–
645,582
307,221
1,368,804
5,691,556
5,832,142
819,076
44,355,130
9,203,486
–
–
–
–
44,355,130
9,203,486
N/A
7,547,000
–
–
7,547,000
N/R
N/A
N/A
N/A
N/A
9,329,661
Equity mutual funds
N/R
N/A
N/A
N/A
N/A
14,213,191
Real asset mutual funds
N/R
N/A
N/A
N/A
N/A
5,469,093
Real estate investment trusts
N/R
N/A
N/A
N/A
N/A
106,771
Investment pools/mutual funds
Investment pools/mutual funds
Investment pools/mutual funds
Aaa
AAA
N/R
Moody’s
S&P
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,051,942
46,157,822
1,929,837
Total investments
$
Total
$ 168,576,221
N/A – Not Applicable
N/R – Not Rated
The amount in investment pools/mutual funds includes $164,728 invested in the Minnesota School
District Liquid Asset Fund and $45,365,065 invested in the MnTrust Investment Shares Portfolio. These
funds are regulated by Minnesota Statutes and are external investment pools not registered with the
Securities Exchange Commission (SEC) that follow the same regulatory rules of the SEC under rule 2a7.
The District’s investment in these funds is measured at the net asset value per share provided by the pool,
which is based on an amortized cost method that approximated fair value.
-54-
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the District would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. Although the District’s investment policies do not directly address custodial credit risk, it
typically limits its exposure by purchasing insured or registered investments, or by the control of who
holds the securities.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the District’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top two
highest categories; repurchase or reverse purchase agreements and securities lending agreements with
financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. For assets held in the District’s OPEB Internal Service
Fund, the investment options available to the District are expanded to include the investment types
specified in Minnesota Statute § 356A.06, Subd. 7. The District’s investment policies do not further
restrict investing in specific financial instruments.
Concentration Risk – This is the risk associated with investing a significant portion of the District’s
investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S.
guaranteed investments (such as treasuries), investment pools, and mutual funds. The District’s
investment policies do not address concentration risk.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The District’s investment policies do not limit the maturities of investments;
however, when purchasing investments the District considers such things as interest rates and cash
flow needs.
-55-
NOTE 3 – CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2014 is as follows:
Balance –
Beginning
of Year
Capital assets, not depreciated
Land
Construction in progress
Total capital assets, not
depreciated
$
8,870,712
425,007
Additions
$
–
7,546,856
Completed
Construction
Deletions
$
–
–
9,295,719
7,546,856
Capital assets, depreciated
Land improvements
Buildings
Furniture and equipment
Total capital assets, depreciated
11,616,641
347,052,329
48,344,708
407,013,678
1,056,801
1,938,770
2,742,829
5,738,400
Less accumulated depreciation for
Land improvements
Buildings
Furniture and equipment
Total accumulated depreciation
(9,133,454)
(158,399,391)
(30,768,103)
(198,300,948)
(307,277)
(8,611,487)
(3,487,876)
(12,406,640)
–
184,972
770,216
955,188
208,712,730
(6,668,240)
(309,530)
Net capital assets, depreciated
Total capital assets, net
$ 218,008,449
$
878,616
$
–
–
(360,220)
(904,498)
(1,264,718)
$
(309,530)
–
(351,909)
$
8,870,712
7,619,954
(351,909)
16,490,666
168,464
48,350
135,095
351,909
12,841,906
348,679,229
50,318,134
411,839,269
–
–
–
–
$
Balance –
End of Year
(9,440,731)
(166,825,906)
(33,485,763)
(209,752,400)
351,909
202,086,869
–
$ 218,577,535
Depreciation expense for the year ended June 30, 2014 was charged to the following governmental
functions:
$
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Community education
Instructional support
Pupil support services – transportation
Food services
Sites and buildings
Sites and buildings – unallocated
Total depreciation expense
10,798
81,456
856,775
13,194
24,942
3,520
16,192
1,248,447
86,318
259,430
9,805,568
$ 12,406,640
-56-
NOTE 4 – LONG-TERM LIABILITIES
A. General Obligation Bonds Payable
The District currently has the following general obligation bonds payable outstanding:
Issue
1995B School Building Bonds
1996A School Building Bonds
2005A School Building Bonds
2005B Refunding Bonds
2009A Taxable OPEB Bonds
2012A Refunding Bonds
2012C Refunding Bonds
2013A Refunding Bonds
2014A Refunding Bonds
Issue Date
Interest Rate
Face/Par Value
04/01/1995
12/03/1996
08/01/2005
09/06/2005
02/12/2009
02/01/2012
06/07/2012
06/15/2013
06/04/2014
5.40–6.00%
5.25–5.75%
3.50–5.00%
3.75–4.25%
3.00–5.00%
2.00–3.00%
3.00–4.50%
2.00–3.00%
3.00%
$
$
$
$
$
$
$
$
$
Total general obligation bonds payable
30,315,000
24,210,000
20,125,000
3,885,000
37,440,000
10,590,000
24,210,000
12,100,000
2,230,000
Final
Maturity
04/01/2015
04/01/2015
02/01/2025
02/01/2020
02/01/2019
04/01/2015
02/01/2025
02/01/2025
02/01/2020
Principal
Outstanding
$
2,015,000
2,000,000
12,800,000
2,325,000
34,915,000
8,340,000
22,980,000
12,100,000
2,230,000
$
99,705,000
These bonds were issued to finance the acquisition and/or construction of capital facilities, the retirement
(refunding) of prior bond issues, or OPEB. Assets of the Debt Service Fund, together with scheduled
future ad valorem tax levies, are dedicated for the retirement of these bonds and notes. The annual future
debt service levies authorized equal 105 percent of the principal and interest due each year. These levies
are subject to reduction if fund balance amounts exceed limitations imposed by Minnesota law.
With the exception of the Series 1995B and 1996A bonds, all general obligation bonds are serial bonds
which require semiannual payments of principal and/or interest from the date the bonds are issued. The
Series 1995B and 1996A bonds are capital appreciation bonds which are issued at a discount and accrete
to their face value at maturity. Interest expense is recognized through the annual amortization of the
discount. All debt service payments are reported as principal payments.
In June 2012, the District issued $24,210,000 of General Obligation School Building Refunding Bonds,
Series 2012C. The proceeds of this issue and interest earned thereon were used to refund, in advance of
their stated maturities, the 2014 through 2025 maturities of the District’s 2004A General Obligation
School Building Bonds, on the August 1, 2013 call date of the refunded issue. This advance “crossover
refunding” reduced the District’s total future debt service payments by approximately $4,255,017 and will
result in present value savings of approximately $3,704,742.
In May 2013, the District issued $12,100,000 of General Obligation School Building Refunding Bonds,
Series 2013A. The proceeds of this issue and interest earned thereon will be used to refund, in advance of
their stated maturities, the 2016 through 2025 maturities of the District’s 2005A General Obligation
School Building Bonds. The proceeds of the 2013A issue have been placed in an escrow account pending
the August 1, 2015 call date of the refunded issue. Until the call date, the District will continue to make
all debt service payments on the 2005A issue, and all debt service on the 2013A issue will be paid from
the escrow account. On August 1, 2015, the escrow account will be used to call the remaining principal of
the 2005A issue, and the District will assume all future principal and interest payments on the 2013A
issue. This advance “crossover refunding” will reduce the District’s total future debt service payments by
approximately $1,462,345 and will result in present value savings of approximately $1,310,486.
-57-
NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
In June 2014, the District issued $2,230,000 of General Obligation School Building Refunding Bonds,
Series 2014A. The proceeds of this issue and interest earned thereon will be used to refund, in advance of
their stated maturities, the 2015 through 2019 maturities of the District’s 2005B General Obligation
School Building Refunding Bonds. The proceeds of the 2014A issue have been placed in an escrow
account pending the August 1, 2014 call date of the refunded issue. Until the call date, the District will
continue to make all debt service payments on the 2005B issue, and all debt service on the 2014A issue
will be paid from the escrow account. On August 1, 2014, the escrow account will be used to call the
remaining principal of the 2005B issue, and the District will assume all future principal and interest
payments on the 2014A issue. This advance “crossover refunding” will reduce the District’s total future
debt service payments by approximately $177,955 and will result in present value savings of
approximately $172,614.
B. Certificates of Participation
The District issued certificates of participation of $2,705,000 in October 2010 to finance the purchase and
renovation of a building. This debt requires semiannual principal and interest payments of varying
amounts (at rates ranging from 2.0 to 3.5 percent) for 15 years, maturing in April 2026. These certificates
are being repaid from the General Fund.
The District issued certificates of participation of $13,710,000 in December 2013 to finance the
construction of a new Early Childhood/Adult Education facility. This debt requires semiannual principal
and interest payments of varying amounts (at rates ranging from 2.0 to 4.0 percent) for 15 years, maturing
in February 2029. These certificates are being repaid from the General Fund.
C. Capital Leases
The District has purchased various assets through capitalized lease-purchase agreements. Annual
principal and interest on these leases will be paid from the General Fund.
Asset Leased
Asset Value
Capitalized
Interest
Rate
Lease Date
Final
Maturity
Principal
Outstanding
Dakota Ridge Building – refunding secured by
land and building
$ 6,646,800
4.49 %
11/30/2006
02/01/2016
$ 1,028,667
Additions to four elementary schools –
secured by ground lease on land and additions
$ 4,213,517
4.25–5.00 %
05/20/1999
02/01/2019
1,532,212
Addition to Red Pine Elementary School –
secured by ground lease on land and additions
$
475,000
4.75–5.70 %
04/01/2000
02/01/2016
90,000
Generators – School of Environmental Studies
and Red Pine Elementary – final purchase
option of $1 at end of lease term
$
392,979
5.50 %
08/31/2009
08/31/2019
229,604
Maintenance vehicles and equipment – final
purchase option of $1 at end of lease term
$
449,937
2.13–2.55 %
10/01/2011
08/01/2015
181,588
ATP Building – final purchase option of $1
at end of lease term
$ 5,028,875
4.54 %
06/29/2012
06/01/2027
4,469,135
High School Band Uniforms – ownership
transfers to District at end of the lease term
$
4%
05/17/2013
9/15/2015
63,657
96,569 *
$ 7,594,863
* Band uniforms were not capitalized as value of individual assets was below District capitalization threshold.
-58-
NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
The assets acquired through these capital leases are as follows:
Furniture and
Equipment
Building
Assets
Less accumulated depreciation
Total
$ 16,364,192
9,626,322
$
842,916
242,658
$ 17,207,108
9,868,980
$
$
600,258
$
6,737,870
7,338,128
D. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for general obligation bonds, certificates of
participation, and capital leases are as follows:
Year
Ending
June 30,
2015
2016
2017
2018
2019
2020–2024
2025–2029
General Obligation Bonds
Principal
Interest
$ 17,930,000
22,995,000
11,460,000
11,885,000
12,470,000
18,785,000
4,180,000
$
3,778,276
3,119,152
2,422,220
1,953,470
1,405,420
2,850,303
152,120
$ 99,705,000
$ 15,680,961
Certificates of Participation
Principal
Interest
$
Capital Leases
Principal
Interest
1,000,000
925,000
945,000
960,000
985,000
5,455,000
5,685,000
$
540,044
482,644
463,731
443,981
415,181
1,566,956
642,638
$
1,275,544
1,325,814
655,372
681,207
708,157
1,761,028
1,187,741
$
261,016
208,226
159,320
133,485
106,534
314,706
57,699
$ 15,955,000
$
4,555,175
$
7,594,863
$
1,240,986
E. Changes in Long-Term Liabilities
Balance –
Beginning
of Year
General obligation bonds payable
Certificates of participation payable
Premiums
Discounts
Total bonds payable
Capital leases payable
Severance benefits payable
Accrued vacation payable
Net OPEB obligation (see Note 7)
$ 139,405,000
2,400,000
4,857,370
(898,208)
145,764,162
Additions
$
2,230,000
13,710,000
325,933
–
16,265,933
Retirements
Balance –
End of Year
Due Within
One Year
$ 41,930,000
155,000
718,562
(703,755)
42,099,807
$ 99,705,000
15,955,000
4,464,741
(194,453)
119,930,288
$ 17,930,000
1,000,000
–
–
18,930,000
8,723,698
13,497,475
3,312,916
14,737,956
96,569
951,131
2,417,220
5,462,592
1,225,404
949,041
2,293,435
3,629,984
7,594,863
13,499,565
3,436,701
16,570,564
1,275,544
3,486,487
689,515
–
$ 186,036,207
$ 25,193,445
$ 50,197,671
$ 161,031,981
$ 24,381,546
-59-
NOTE 5 – FUND BALANCES
The following is a breakdown of equity components of governmental funds which are defined earlier in
this report. Any restrictions which have an accumulated deficit balance at June 30 are included in
unassigned fund balance in the District’s financial statements in accordance with accounting principles
generally accepted in the United States of America. However, a description of these deficit balance
restrictions is included herein since the District has specific authority to future resources for such deficits.
A. Classifications
At June 30, 2014, a summary of the District’s governmental fund balance classifications are as follows:
General Fund
Nonspendable
Inventory
Prepaid items
Total nonspendable
$
697,647
242,562
940,209
Capital
Projects –
Building
Construction
Fund
$
–
–
–
Debt Service
Fund
$
–
–
–
Nonmajor
Funds
$
Total
157,231
15,154
172,385
$
854,878
257,716
1,112,594
Restricted
Staff development
Health and safety
Operating capital
Capital projects levy
Debt service on certificates of participation
Community education programs
Early childhood family education programs
School readiness
Adult basic education
Building projects funded by certificates of
participation
Alternative facilities program
Bond refundings
Debt service
Food service
Community service
Total restricted
24,727
437,092
2,061,856
349,640
137,506
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
587,001
311,406
32,088
454,565
24,727
437,092
2,061,856
349,640
137,506
587,001
311,406
32,088
454,565
–
–
–
–
–
–
3,010,821
7,891,755
260,981
–
–
–
–
8,152,736
–
–
14,915,514
3,916,115
–
–
18,831,629
–
–
–
–
2,204,928
1,616
3,591,604
7,891,755
260,981
14,915,514
3,916,115
2,204,928
1,616
33,586,790
Assigned
Subsequent year budget deficit
Building carryover
Special education
Total assigned
5,061,743
3,189,617
200,000
8,451,360
–
–
–
–
–
–
–
–
–
–
–
–
5,061,743
3,189,617
200,000
8,451,360
(739,930)
19,468,426
18,728,496
–
–
–
–
–
–
–
–
–
(739,930)
19,468,426
18,728,496
8,152,736
$ 18,831,629
Unassigned
Safe schools restricted account deficit
Unassigned
Total unassigned
Total
$ 31,130,886
$
$
3,763,989
$ 61,879,240
B. Minimum Fund Balance Policy
The School Board has formally adopted a fund balance policy regarding the minimum fund balance for
the General Fund. The policy establishes a minimum General Fund balance of 5 percent of the annual
projected operating expenditures.
-60-
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
Substantially all employees of the District are required by state law to belong to defined benefit,
multi-employer, cost-sharing pension plans administered by the Teachers’ Retirement Association (TRA)
or Public Employees’ Retirement Association (PERA), all of which are administered on a state-wide
basis. Disclosures relating to these plans are as follows:
Teachers’ Retirement Association (TRA)
A. Plan Description
All teachers employed by the District are covered by defined benefit plans administered by the TRA.
TRA members belong to either the Coordinated or Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. All new members must participate in the Coordinated
Plan. The plans are established and administered in accordance with Minnesota Statutes, Chapter 354 and
356.
The TRA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by Minnesota Statute and vest after three years
of service credit. The defined retirement benefits are based on a member’s highest average salary for any
five consecutive years of allowable service, age, and a formula multiplier based on years of credit at
termination of service.
Two methods are used to compute benefits for the TRA’s Coordinated and Basic Plan members.
Members first employed before July 1, 1989 receive the greater of the Tier I or Tier II benefits as
described:
Tier I
Step Rate Formula
Percentage
per Year
Basic Plan
First 10 years
All years after
2.2 percent
2.7 percent
Coordinated Plan
First 10 years if service years are prior to July 1, 2006
First 10 years if service years are July 1, 2006 or after
All other years of service if service years are prior to July 1, 2006
All other years of service if service years are July 1, 2006 or after
1.2 percent
1.4 percent
1.7 percent
1.9 percent
With these provisions:

Normal retirement age is 65 with less than 30 years of allowable service and age 62 with
30 or more years of allowable service.

Three percent per year early retirement reduction factor for all years under normal retirement
age.

Unreduced benefits for early retirement under a Rule-of-90 (age plus allowable service equals
90 or more).
-61-
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Tier II
For years of service prior to July 1, 2006, a level formula of 1.7 percent per year for Coordinated Plan
members and 2.7 percent per year for Basic Plan members. For years of service July 1, 2006 and
after, a level formula of 1.9 percent per year for Coordinated Plan members and 2.7 percent for Basic
Plan members applies. Actuarially equivalent early retirement reduction factors with augmentation
are used for early retirement before the normal age of 65. These reduction factors average
approximately 4.0 to 5.4 percent per year.
Members first employed after June 30, 1989 receive only the Tier II calculation with a normal retirement
age that is their retirement age for full Social Security retirement benefits, but not to exceed age 66.
Six different types of annuities are available to members upon retirement. The No Refund Life Plan is a
lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. A retiring
member may also choose to provide survivor benefits to a designated beneficiary(ies) by selecting one of
the five plans that have survivorship features. Vested members may also leave their contributions in the
TRA Fund upon termination of service in order to qualify for a deferred annuity at retirement age. Any
member terminating service is eligible for a refund of their employee contributions plus interest.
The benefit provisions stated apply to active plan participants. Vested, terminated employees who are
entitled to benefits but not receiving them are bound by the provisions in effect at the time they last
terminated their public service.
The TRA publicly issues a comprehensive annual financial report presenting financial statements,
supplemental information on funding levels, investment performance, and further information on benefits
provisions. The report may be accessed at the TRA website at www.minnesotatra.org. Alternatively, a
copy of the report may be obtained by writing the TRA at Teachers’ Retirement Association, 60 Empire
Drive, Suite 400, St. Paul, Minnesota 55103-4000 or by calling (651) 296–2409 or (800) 657–3669.
B. Funding Policy
Minnesota Statutes, Chapter 354 sets the rates for employee and employer contributions. These statutes
are established and amended by the State Legislature. Coordinated and Basic Plan members are required
to contribute 7.0 percent and 10.5 percent, respectively, of their annual covered salary during fiscal year
2014 as employee contributions. The TRA employer contribution rates are 7.0 percent for Coordinated
Plan members and 11.0 percent for Basic Plan members during fiscal year 2014. Total covered payroll
salaries for all TRA members state-wide during the fiscal years June 30, 2013, 2012, and 2011, were
approximately $3.92 billion, $3.87 billion, and $3.84 billion, respectively.
The District’s contributions for the years ended June 30, 2014, 2013, and 2012 were $10,909,977,
$9,752,183, and $8,895,673, respectively, equal to the contractually required contributions for each year
as set by state statutes.
The 2010 Legislature approved employee and employer contribution rate increases to be phased-in over a
four-year period beginning July 1, 2011. Employee and employer contribution rates increased by
0.5 percent on July 1 of each year of the four-year period, ending in 2014. Beginning July 1, 2014, TRA
Coordinated Plan employee and employer contribution rates will each be 7.5 percent.
-62-
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Public Employees’ Retirement Association (PERA)
A. Plan Description
All non-teacher full-time and certain part-time employees of the District are covered by defined benefit
plans administered by the PERA. The PERA administers the General Employees Retirement Fund
(GERF), which is a cost-sharing, multiple-employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan.
The PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by state statutes, and vest after five
years of credited service. The defined retirement benefits are based on a member’s highest average salary
for any five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for the PERA’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of
average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first
10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent
of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of
service. For all GERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic
and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced
Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a
lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants.
The PERA issues a publicly available financial report that includes financial statements and required
supplementary information for the GERF. That report may be obtained on the PERA website at
www.mnpera.org; by writing to the PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota
55103-2088; or by calling (651) 296-7460 or (800) 652-9026.
-63-
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
B. Funding Policy
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the State Legislature. The District makes annual contributions to the
pension plans equal to the amount required by state statutes. The GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.1 percent and 6.25 percent, respectively, of their
annual covered salary in fiscal 2014. In fiscal 2014, the District was required to contribute the following
percentages of annual covered payroll: 11.78 percent for Basic Plan members and 7.25 percent for
Coordinated Plan members.
The District’s contributions to the GERF for the years ended June 30, 2014, 2013, and 2012 were
$3,302,348, $3,211,780, and $3,118,394, respectively, equal to the contractually required contributions
for each year as set by state statutes.
Beginning January 1, 2015, Coordinated Plan contribution rates will increase for employees and
employers to 6.50 percent and 7.50 percent, respectively.
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The District provides post-employment benefits to certain eligible employees through its OPEB Plan, a
single-employer defined benefit plan administered by the District. All post-employment benefits are
based on contractual agreements with employee groups. Eligibility for these benefits is based on years of
service and/or minimum age requirements. These contractual agreements do not include any specific
contribution or funding requirements. The plan does not issue a separate financial report. These benefits
are summarized as follows:
Teachers’ Post-Employment Health Care Savings Benefits – Eligible teachers receive at
retirement an amount equal to 25 days of pay multiplied by their daily rate of pay at retirement, plus
an additional $12,000. Teachers may also elect to receive district matching contributions paid into a
tax-deferred matching contribution plan established under Internal Revenue Service Code Section
403(b). The amount of any post-employment healthcare savings plan benefits due to an individual is
reduced by the total matching contributions made by the District to such a plan over the course of that
individual’s employment, to the extent that such 403(b) contributions exceed any severance (as
described earlier in these notes) earned by the individual.
Post-Employment Insurance Benefits – All retirees of the District have the option under state law to
continue their medical insurance coverage through the District from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of certain employee groups, the
District pays for all or part of the eligible retiree’s premiums for medical, dental, and/or life insurance
from the time of retirement until the employee reaches the age of eligibility for Medicare. Benefits
paid by the District differ by bargaining unit, with some contracts specifying a certain dollar amount
per month (ranging from $182 to $1,290), and some covering the full monthly premium costs.
Retirees not eligible for these district-paid premium benefits must pay the full district premium rate
for their coverage.
-64-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The District is legally required to include any retirees for whom it provides health insurance coverage in
the same insurance pool as its active employees, whether the premiums are paid by the District or the
retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an
“implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable
premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to
being included in the same pool with the District’s younger and statistically healthier active employees.
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to pre-fund benefits as determined periodically by the District. The District has established a
separate internal service fund to account for these obligations. The District’s OPEB Internal Service Fund
had cash and investments of $49,380,030 and net position of $32,809,466 as of June 30, 2014. The
resources in this fund are available to finance the District’s OPEB liability. However, because these assets
are maintained in a revocable trust, they are not considered to be plan assets.
C. Annual OPEB Cost and Net OPEB Obligation
The District’s annual OPEB cost (expense) is calculated based on annual required contributions (ARC) of
the District, an amount determined on an actuarially determined basis in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level funding that, if paid on an ongoing basis, is
projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed 30 years. The following table shows the components of the District’s
annual OPEB cost for the year, the amount actually contributed to the plan, and the changes in the
District’s net OPEB obligation to the plan:
ARC
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation – beginning of year
$
5,678,242
810,588
(1,026,238)
5,462,592
3,629,984
1,832,608
14,737,956
Net OPEB obligation – end of year
$
16,570,564
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the years ended June 30, 2012, 2013, and 2014 are as follows:
Fiscal
Year Ended
June 30, 2012
June 30, 2013
June 30, 2014
Annual
OPEB Cost
$
$
$
5,592,639
5,505,012
5,462,592
Employer
Contribution
$
$
$
3,212,995
3,063,217
3,629,984
Percentage of
Annual OPEB
Cost Contributed
57.5%
55.6%
66.5%
Net OPEB
Obligation
$
$
$
12,296,161
14,737,956
16,570,564
D. Funded Status and Funding Progress
As of July 1, 2012, the most recent actuarial valuation date, the plan was unfunded and the actuarial
accrued liability for benefits was $45,117,841, resulting in an unfunded actuarial accrued liability
(UAAL) of $45,117,841. The covered payroll (annual payroll of active employees covered by the plan)
was $171,521,056, and the ratio of the UAAL to the covered payroll was 26.3 percent.
-65-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and the ARC of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The Schedule of
Funding Progress immediately following the notes to basic financial statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the July 1, 2012, actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 5.5 percent investment rate of return (net of administrative expenses)
based on the District’s own investments; a 3.0 percent rate of projected salary increases through June 30,
2013 and a 3.0 percent increase thereafter; an annual healthcare cost trend rate of 8.0 percent initially,
reduced by decrements to an ultimate rate of 5.0 percent after six years for medical insurance; and an
annual healthcare trend rate of 4.0 percent for dental insurance. A 2.5 percent inflation rate is included in
these assumptions. The UAAL is being amortized on a level dollar basis over a closed period. The
remaining amortization period at July 1, 2012 was 30 years.
NOTE 8 – FLEXIBLE BENEFIT PLAN
The District offers its employees a flexible benefit plan which is classified as a “cafeteria plan” (the Plan)
under § 125 of the Internal Revenue Code (which includes pre-tax insurance premiums, unreimbursed
medical expenses, and dependant care expenses). All employee groups of the District are eligible if and
when the collective bargaining agreement or contract with their group allows eligibility. Eligible
employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the
Plan. Payments are made from the Plan to participating employees upon submitting a request for
reimbursement of eligible expenses actually incurred by the participant.
Before the beginning of the Plan year, which is from September 1 to August 31, each participant
designates a total amount of pre-tax dollars to be contributed to the plan during the year. At June 30, the
District is contingently liable for claims against the total amount of participants’ annual contributions to
the medical reimbursement portion of the Plan, whether or not such contributions have been made.
The Plan is being administered by an independent contract administrator. The unreimbursed medical
expense and dependant care expense portions of the Plan were recorded in the Employee Benefit Trust
Fund. However, the health insurance premium reimbursements were accounted for in the District’s
operating funds.
-66-
NOTE 8 – FLEXIBLE BENEFIT PLAN (CONTINUED)
All property of the Plan and income attributable to that property is solely the property of the District,
subject to the claims of the District’s general creditors. Participants’ rights under the Plan are equal to
those of general creditors of the District in an amount equal to the eligible healthcare and dependant care
expenses incurred by the participants. The District believes that it is unlikely that it will use the assets to
satisfy the claims of general creditors in the future.
NOTE 9 – OPERATING LEASES
The District is currently obligated on two leases for additional instructional space with monthly payments
at varying amounts with the final lease term ending August 31, 2014. Total lease payments for fiscal year
2014 on these two agreements and a third that matured during fiscal year 2014 were $1,608,180.
Minimum future annual lease payments are as follows:
Year Ending
June 30,
Amount
2015
$
65,689
NOTE 10 – COMMITMENTS AND CONTINGENCIES
A. Legal Claims
The District has the usual and customary types of miscellaneous legal claims pending at year-end, mostly
of a minor nature and usually covered by insurance carried for that purpose.
B. Federal and State Receivables
Amounts received or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be
determined at this time although the District expects such amounts, if any, to be immaterial.
C. Contract Commitments
The District is committed to a number of contracts awarded for various construction and maintenance
projects. The District’s commitment for uncompleted work on these contracts at June 30, 2014 was
approximately $2,439,193.
D. Future Change in Accounting Standards
GASB Statement No. 68 replaces the requirements of GASB Statement No. 27, Accounting for Pensions
by State and Local Governmental Employers, and GASB Statement No. 50, Pension Disclosures, as they
relate to employer governments that provide pensions through pension plans administered as trusts or
similar arrangements that meet certain criteria. GASB Statement No. 68 requires governments providing
defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the
first time, and to more comprehensively and comparably measure the annual costs of pension benefits.
This statement will be effective for fiscal years beginning after June 15, 2014. The District has not yet
determined the financial statement impact of adopting this new standard.
-67-
-68-
REQUIRED SUPPLEMENTARY INFORMATION
-69-
INDEPENDENT SCHOOL DISTRICT NO. 196
Other Post-Employment Benefits Plan
Schedule of Funding Progress
June 30, 2014
Schedule of Funding Progress
Actuarial
Valuation
Date
Actuarial
Accrued
Liability
July 1, 2008
July 1, 2010
July 1, 2012
$ 37,222,050
$ 45,153,418
$ 45,117,841
Note:
Actuarial
Value of
Plan Assets
$
$
$
–
–
–
Unfunded
Actuarial
Accrued
Liability
(UAAL)
$ 37,222,050
$ 45,153,418
$ 45,117,841
Funded
Ratio
– %
– %
– %
Covered
Payroll
$ 155,469,090
$ 174,903,306
$ 171,521,056
Unfunded
Liability as a
Percentage of
Payroll
23.9 %
25.8 %
26.3 %
On October 15, 2009, the District issued taxable other post-employment benefit bonds to fund a significant
portion of the actuarial accrued liability. The bond proceeds were placed in a trust, which held cash and
investments of $49.4 million at June 30, 2014. These are not considered plan assets because the trust is
revocable.
-70-
SUPPLEMENTAL INFORMATION
-71-
INDEPENDENT SCHOOL DISTRICT NO. 196
Nonmajor Governmental Funds
Combining Balance Sheet
as of June 30, 2014
Special Revenue Funds
Community
Food Service
Service
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Inventory
Prepaid items
$
2,888,915
$
–
–
3,776
141,051
157,231
14,204
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
919,100
16,192
103,650
259,328
–
950
5,552,188
919,100
16,192
107,426
400,379
157,231
15,154
3,205,177
$
3,962,493
$
7,167,670
$
251,867
233,865
1,016
342,066
828,814
$
306,625
253,358
260
319,160
879,403
$
558,492
487,223
1,276
661,226
1,708,217
Fund balances
Nonspendable for inventory
Nonspendable for prepaid items
Restricted
Total fund balances
$
-72-
$
$
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
Total liabilities, deferred inflows of
resources, and fund balances
2,663,273
Total
–
–
–
16,192
1,679,272
1,695,464
16,192
1,679,272
1,695,464
157,231
14,204
2,204,928
2,376,363
–
950
1,386,676
1,387,626
157,231
15,154
3,591,604
3,763,989
3,205,177
$
3,962,493
$
7,167,670
INDEPENDENT SCHOOL DISTRICT NO. 196
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended June 30, 2014
Special Revenue Funds
Community
Food Service
Service
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
$
Expenditures
Current
Food service
Community service
Capital outlay
Total expenditures
Excess (deficiency) of revenue over expenditures
Other financing sources
Transfers in
Net change in fund balances
Fund balances
Beginning of year
–
2,604
6,519,363
405,390
4,215,285
11,142,642
$
$
-73-
$
856,143
4,375
12,358,017
3,441,988
4,312,000
20,972,523
11,253,357
–
153,687
11,407,044
–
9,734,182
17,676
9,751,858
(264,402)
78,023
(186,379)
–
107,854
107,854
(264,402)
185,877
(78,525)
2,640,765
End of year
856,143
1,771
5,838,654
3,036,598
96,715
9,829,881
Total
2,376,363
11,253,357
9,734,182
171,363
21,158,902
1,201,749
$
1,387,626
3,842,514
$
3,763,989
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Comparative Balance Sheet
as of June 30, 2014 and 2013
2014
Assets
Cash and temporary investments
Cash and investments held by trustee
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Due from other funds
Inventory
Prepaid items
$
62,232,478
137,506
2013
$
31,451,667
527,065
396,557
28,884,728
–
697,647
242,562
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Due to other funds
Unearned revenue
Total liabilities
37,499,149
–
30,017,777
696,135
362,079
35,020,271
14,171
670,321
184,642
$
124,570,210
$
104,464,545
$
17,712,851
17,762,796
3,083,869
235
113,255
38,673,006
$
17,202,260
16,343,567
3,120,918
–
188,788
36,855,533
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
527,065
54,239,253
54,766,318
696,135
27,157,051
27,853,186
Fund balances (deficits)
Nonspendable for inventory
Nonspendable for prepaid items
Restricted for staff development
Restricted for health and safety
Restricted for operating capital
Restricted for area learning center
Restricted for capital projects levy
Restricted for debt service on certificates of participation
Assigned for subsequent year budget deficit
Assigned for building carryover
Assigned for special education
Unassigned – safe schools restricted account deficit
Unassigned
Total fund balances
697,647
242,562
24,727
437,092
2,061,856
–
349,640
137,506
5,061,743
3,189,617
200,000
(739,930)
19,468,426
31,130,886
670,321
184,642
–
401,963
1,139,246
167,899
5,582
–
17,309,926
3,031,347
–
(576,195)
17,421,095
39,755,826
Total liabilities, deferred inflows of
resources, and fund balances
$
-74-
124,570,210
$
104,464,545
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
Revenue
Local sources
Property taxes
Investment earnings (charges)
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Administration
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total administration
District support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total district support services
Elementary and secondary regular instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total elementary and secondary regular
instruction
2013
Budget
Actual
Over (Under)
Budget
$ 53,566,923
80,000
10,615,098
224,836,890
8,072,956
297,171,867
$ 30,849,978
179,260
12,397,513
248,498,788
7,811,310
299,736,849
$ (22,716,945)
99,260
1,782,415
23,661,898
(261,646)
2,564,982
$ 54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
8,841,802
3,387,123
549,510
216,522
90,981
118,838
13,204,776
8,845,483
3,219,850
364,005
90,841
33,852
108,644
12,662,675
3,681
(167,273)
(185,505)
(125,681)
(57,129)
(10,194)
(542,101)
8,221,664
3,013,979
220,158
62,202
66,554
100,662
11,685,219
4,782,596
3,298,131
2,332,339
152,954
219,340
35,278
10,820,638
4,157,969
1,835,984
2,021,746
65,235
135,954
29,076
8,245,964
(624,627)
(1,462,147)
(310,593)
(87,719)
(83,386)
(6,202)
(2,574,674)
4,307,178
1,808,256
1,306,470
72,696
217,702
591,353
8,303,655
107,587,568
32,939,444
5,555,120
6,319,137
1,646,131
367,875
105,114,006
33,727,749
5,446,856
4,921,168
1,961,646
282,122
(2,473,562)
788,305
(108,264)
(1,397,969)
315,515
(85,753)
102,451,188
31,770,832
5,879,522
5,234,412
1,188,738
360,094
154,415,275
151,453,547
(2,961,728)
146,884,786
Actual
(continued)
-75-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
2013
Over (Under)
Budget
Budget
Actual
Expenditures (continued)
Current (continued)
Vocational education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total vocational education instruction
2,649,401
815,566
269,120
89,776
53,717
34,898
3,912,478
2,642,267
813,644
218,315
91,853
101,258
32,095
3,899,432
(7,134)
(1,922)
(50,805)
2,077
47,541
(2,803)
(13,046)
2,579,636
800,169
237,343
111,311
100,721
31,415
3,860,595
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total special education instruction
42,052,898
15,117,091
1,575,679
659,551
330,922
66,087
59,802,228
42,880,626
15,658,534
1,132,231
661,767
311,800
105,029
60,749,987
827,728
541,443
(443,448)
2,216
(19,122)
38,942
947,759
41,120,684
14,603,912
1,103,944
523,683
310,964
37,097
57,700,284
–
–
2,057
2,057
41,866
6,330
2,057
50,253
Instructional support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total instructional support services
8,770,054
2,818,951
1,414,934
890,568
127,822
179,779
14,202,108
10,862,196
3,381,454
1,538,314
848,519
92,058
12,198
16,734,739
2,092,142
562,503
123,380
(42,049)
(35,764)
(167,581)
2,532,631
10,522,182
3,127,413
1,336,399
673,263
79,245
382,312
16,120,814
Pupil support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total pupil support services
11,384,669
5,410,862
3,345,850
2,078,285
1,652,407
26,069
23,898,142
11,472,724
5,083,797
3,034,004
2,033,450
1,650,919
43,186
23,318,080
88,055
(327,065)
(311,846)
(44,835)
(1,488)
17,117
(580,062)
10,999,932
4,707,678
2,964,047
2,016,923
1,980,868
17,436
22,686,884
Community service
Salaries
Employee benefits
Capital expenditures
Total community service
41,866
6,330
–
48,196
Actual
79,258
11,462
–
90,720
(continued)
-76-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Expenditures (continued)
Current (continued)
Sites and buildings
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total sites and buildings
Fiscal and other fixed cost programs
Purchased services
Debt service
Principal
Interest and fiscal charges
Total debt service
Total expenditures
Excess (deficiency) of revenue
over expenditures
Other financing sources (uses)
Capital lease
Certificates of participation
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Actual
Over (Under)
Budget
Actual
8,132,427
3,660,488
7,508,411
1,352,774
2,475,928
12,498
23,142,526
8,110,332
3,788,395
8,095,328
1,011,761
1,886,322
14,442
22,906,580
(22,095)
127,907
586,917
(341,013)
(589,606)
1,944
(235,946)
7,736,561
3,540,106
7,515,136
1,110,735
2,293,637
184,344
22,380,519
781,771
697,917
(83,854)
598,093
1,373,270
380,205
1,753,475
1,380,404
376,005
1,756,409
7,134
(4,200)
2,934
1,341,223
399,581
1,740,804
305,935,474
302,475,583
(3,459,891)
292,052,373
(8,763,607)
(2,738,734)
6,024,873
–
–
–
(6,146,088)
(6,146,088)
96,569
137,506
8,143
(6,128,424)
(5,886,206)
96,569
137,506
8,143
17,664
259,882
–
–
402,372
(7,456,023)
(7,053,651)
$ (14,909,695)
(8,624,940)
$ 6,284,755
(1,618,186)
Fund balances
Beginning of year
End of year
-77-
5,435,465
39,755,826
41,374,012
$ 31,130,886
$ 39,755,826
-78-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account
for the Year Ended June 30, 2014
Operating
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Administration
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total administration
District support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total district support services
Elementary and secondary
regular instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total elementary and secondary
regular instruction
$ 24,077,190
179,260
11,166,929
229,150,440
7,811,310
272,385,129
Pupil
Transportation
$
–
–
1,198,346
15,955,824
–
17,154,170
Capital
Expenditure
$
Total
6,772,788
–
32,238
3,392,524
–
10,197,550
$ 30,849,978
179,260
12,397,513
248,498,788
7,811,310
299,736,849
8,845,483
3,219,850
353,943
90,841
15,015
108,644
12,633,776
–
–
–
–
–
–
–
–
–
10,062
–
18,837
–
28,899
8,845,483
3,219,850
364,005
90,841
33,852
108,644
12,662,675
4,157,969
1,835,984
1,265,185
65,235
37,039
29,076
7,390,488
–
–
–
–
–
–
–
–
–
756,561
–
98,915
–
855,476
4,157,969
1,835,984
2,021,746
65,235
135,954
29,076
8,245,964
105,114,006
33,727,749
5,315,864
3,123,135
532,678
282,122
–
–
–
–
–
–
–
–
130,992
1,798,033
1,428,968
–
105,114,006
33,727,749
5,446,856
4,921,168
1,961,646
282,122
148,095,554
–
3,357,993
151,453,547
(continued)
-79-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account (continued)
for the Year Ended June 30, 2014
Operating
Pupil
Transportation
Capital
Expenditure
Total
Expenditures (continued)
Current (continued)
Vocational education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total vocational education instruction
2,642,267
813,644
218,315
91,853
83,834
32,095
3,882,008
–
–
–
–
–
–
–
–
–
–
–
17,424
–
17,424
2,642,267
813,644
218,315
91,853
101,258
32,095
3,899,432
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total special education instruction
42,880,626
15,658,534
1,132,231
661,767
301,674
105,029
60,739,861
–
–
–
–
–
–
–
–
–
–
–
10,126
–
10,126
42,880,626
15,658,534
1,132,231
661,767
311,800
105,029
60,749,987
41,866
6,330
–
48,196
–
–
–
–
–
–
2,057
2,057
41,866
6,330
2,057
50,253
10,862,196
3,381,454
1,538,314
695,027
28,865
12,198
16,518,054
–
–
–
–
–
–
–
–
–
–
153,492
63,193
–
216,685
10,862,196
3,381,454
1,538,314
848,519
92,058
12,198
16,734,739
4,741,167
1,636,271
322,041
28,721
8,303
3,356
6,739,859
6,731,557
3,447,526
2,709,006
2,004,729
1,641,782
39,830
16,574,430
–
–
2,957
–
834
–
3,791
11,472,724
5,083,797
3,034,004
2,033,450
1,650,919
43,186
23,318,080
Community service
Salaries
Employee benefits
Capital expenditures
Total community service
Instructional support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total instructional support services
Pupil support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total pupil support services
(continued)
-80-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account (continued)
for the Year Ended June 30, 2014
Operating
Expenditures (continued)
Current (continued)
Sites and buildings
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total sites and buildings
Pupil
Transportation
Capital
Expenditure
Total
8,003,692
3,743,685
5,823,445
970,919
1,299,230
2,344
19,843,315
–
–
–
–
–
–
–
106,640
44,710
2,271,883
40,842
587,092
12,098
3,063,265
8,110,332
3,788,395
8,095,328
1,011,761
1,886,322
14,442
22,906,580
697,917
–
–
697,917
53,028
19,228
72,256
–
–
–
1,327,376
356,777
1,684,153
1,380,404
376,005
1,756,409
276,661,284
16,574,430
9,239,869
302,475,583
(4,276,155)
579,740
957,681
(2,738,734)
Other financing sources (uses)
Capital lease
Certificates of participation
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
96,569
137,506
7,239
(6,128,424)
(5,887,110)
–
–
904
–
904
–
–
–
–
–
96,569
137,506
8,143
(6,128,424)
(5,886,206)
Net change in fund balances
(10,163,265)
580,644
957,681
(8,624,940)
2,426,502
1,575,335
39,755,826
2,533,016
$ 31,130,886
Fiscal and other fixed cost programs
Purchased services
Debt service
Principal
Interest
Total debt service
Total expenditures
Excess (deficiency) of revenue
over expenditures
Fund balances
Beginning of year
End of year
35,753,989
$ 25,590,724
-81-
$
3,007,146
$
-82-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Operating Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Administration
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total administration
District support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total district support services
Elementary and secondary
regular instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total elementary and secondary
regular instruction
$
Actual
46,794,135
80,000
9,593,998
205,589,208
8,072,956
270,130,297
$
Over (Under)
Budget
Actual
24,077,190
179,260
11,166,929
229,150,440
7,811,310
272,385,129
$ (22,716,945)
99,260
1,572,931
23,561,232
(261,646)
2,254,832
$
47,334,100
95,051
11,448,029
203,411,179
8,178,286
270,466,645
8,841,802
3,387,123
529,189
216,522
43,214
117,738
13,135,588
8,845,483
3,219,850
353,943
90,841
15,015
108,644
12,633,776
3,681
(167,273)
(175,246)
(125,681)
(28,199)
(9,094)
(501,812)
4,782,596
3,298,131
1,577,504
152,954
44,900
35,278
9,891,363
4,157,969
1,835,984
1,265,185
65,235
37,039
29,076
7,390,488
(624,627)
(1,462,147)
(312,319)
(87,719)
(7,861)
(6,202)
(2,500,875)
107,516,372
32,927,187
5,432,956
3,577,388
576,333
227,153
105,114,006
33,727,749
5,315,864
3,123,135
532,678
282,122
(2,402,366)
800,562
(117,092)
(454,253)
(43,655)
54,969
102,341,705
31,734,439
5,750,774
3,385,886
354,510
229,612
150,257,389
148,095,554
(2,161,835)
143,796,926
8,221,664
3,013,979
208,843
62,202
5,010
100,662
11,612,360
4,307,178
1,808,256
1,283,465
72,696
34,419
(143,047)
7,362,967
(continued)
-83-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Operating Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Actual
Over (Under)
Budget
Actual
Expenditures (continued)
Current (continued)
Vocational education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total vocational education instruction
2,649,401
815,566
269,120
89,776
52,517
34,898
3,911,278
2,642,267
813,644
218,315
91,853
83,834
32,095
3,882,008
(7,134)
(1,922)
(50,805)
2,077
31,317
(2,803)
(29,270)
2,579,636
800,169
237,343
94,650
63,018
31,415
3,806,231
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total special education instruction
42,052,898
15,117,091
1,575,679
659,551
311,272
66,087
59,782,578
42,880,626
15,658,534
1,132,231
661,767
301,674
105,029
60,739,861
827,728
541,443
(443,448)
2,216
(9,598)
38,942
957,283
41,120,684
14,603,912
1,103,944
523,683
304,144
37,097
57,693,464
–
–
–
41,866
6,330
48,196
8,770,054
2,818,951
1,414,934
819,504
13,904
39,053
13,876,400
10,862,196
3,381,454
1,538,314
695,027
28,865
12,198
16,518,054
2,092,142
562,503
123,380
(124,477)
14,961
(26,855)
2,641,654
10,483,409
3,107,816
1,336,399
592,250
51,616
282,086
15,853,576
4,584,642
1,536,859
330,356
62,885
2,130
3,569
6,520,441
4,741,167
1,636,271
322,041
28,721
8,303
3,356
6,739,859
156,525
99,412
(8,315)
(34,164)
6,173
(213)
219,418
4,463,593
1,425,395
323,159
27,874
–
3,536
6,243,557
Community service
Salaries
Employee benefits
Total community service
Instructional support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total instructional support services
Pupil support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total pupil support services
41,866
6,330
48,196
79,258
11,462
90,720
(continued)
-84-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Operating Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Expenditures (continued)
Current (continued)
Sites and buildings
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total sites and buildings
Fiscal and other fixed cost programs
Purchased services
Debt service
Principal
Interest
Total debt service
Total expenditures
Excess (deficiency) of revenue
over expenditures
Other financing sources (uses)
Capital lease
Certificates of participation
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Over (Under)
Budget
Budget
Actual
Actual
8,006,852
3,605,592
5,398,226
1,291,974
1,672,081
400
19,975,125
8,003,692
3,743,685
5,823,445
970,919
1,299,230
2,344
19,843,315
(3,160)
138,093
425,219
(321,055)
(372,851)
1,944
(131,810)
7,611,450
3,478,945
5,268,810
1,031,100
1,771,763
4
19,162,072
781,771
697,917
(83,854)
598,093
36,572
19,228
55,800
53,028
19,228
72,256
16,456
–
16,456
59,726
5,333
65,059
278,187,733
276,661,284
(1,526,449)
266,285,025
(8,057,436)
(4,276,155)
3,781,281
–
–
–
(6,146,088)
(6,146,088)
96,569
137,506
7,239
(6,128,424)
(5,887,110)
96,569
137,506
7,239
17,664
258,978
–
–
3,122
(7,456,023)
(7,452,901)
$ (14,203,524)
(10,163,265)
4,040,259
(3,271,281)
Fund balances
Beginning of year
$
4,181,620
35,753,989
$
End of year
-85-
25,590,724
39,025,270
$
35,753,989
-86-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Pupil Transportation Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
Budget
Revenue
Local sources
Other
State sources
Total revenue
$
Expenditures
Current
Pupil support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total pupil support services
Other financing sources
Sale of capital assets
Net change in fund balances
Actual
1,021,100
15,870,888
16,891,988
$
6,800,027
3,874,003
3,013,250
2,015,400
1,648,500
22,500
17,373,680
Excess (deficiency) of
revenue over expenditures
$
2013
Over (Under)
Budget
1,198,346
15,955,824
17,154,170
$
6,731,557
3,447,526
2,709,006
2,004,729
1,641,782
39,830
16,574,430
177,246
84,936
262,182
Actual
$
(68,470)
(426,477)
(304,244)
(10,671)
(6,718)
17,330
(799,250)
1,204,518
15,542,872
16,747,390
6,536,339
3,282,283
2,633,644
1,967,153
1,918,582
13,900
16,351,901
(481,692)
579,740
1,061,432
395,489
–
904
904
399,250
(481,692)
580,644
1,062,336
794,739
Fund balances
Beginning of year
$
2,426,502
$
End of year
-87-
3,007,146
1,631,763
$
2,426,502
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Capital Expenditure Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Revenue
Local sources
Property taxes
Other
State sources
Total revenue
Expenditures
Current
Administration
Purchased services
Capital expenditures
Other expenditures
Total administration
District support services
Purchased services
Capital expenditures
Other expenditures
Total district support services
Elementary and secondary
regular instruction
Salaries
Employee benefits
Purchased services
Supplies and material
Capital expenditures
Other expenditures
Total elementary and
secondary regular instruction
Vocational education instruction
Supplies and material
Capital expenditures
Total vocational education instruction
Special education instruction
Capital expenditures
Community service
Capital expenditures
$
6,772,788
–
3,376,794
10,149,582
Actual
$
6,772,788
32,238
3,392,524
10,197,550
Over (Under)
Budget
$
–
32,238
15,730
47,968
Actual
$
7,045,540
27,985
3,200,278
10,273,803
20,321
47,767
1,100
69,188
10,062
18,837
–
28,899
(10,259)
(28,930)
(1,100)
(40,289)
11,315
61,544
–
72,859
754,835
174,440
–
929,275
756,561
98,915
–
855,476
1,726
(75,525)
–
(73,799)
23,005
183,283
734,400
940,688
71,196
12,257
122,164
2,741,749
1,069,798
140,722
–
–
130,992
1,798,033
1,428,968
–
(71,196)
(12,257)
8,828
(943,716)
359,170
(140,722)
109,483
36,393
128,748
1,848,526
834,228
130,482
4,157,886
3,357,993
(799,893)
3,087,860
–
1,200
1,200
–
17,424
17,424
–
16,224
16,224
16,661
37,703
54,364
19,650
10,126
(9,524)
6,820
2,057
2,057
–
–
(continued)
-88-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund – Capital Expenditure Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual (continued)
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Expenditures (continued)
Current (continued)
Instructional support services
Salaries
Employee benefits
Supplies and materials
Capital expenditures
Other expenditures
Total instructional support services
Pupil support services
Purchased services
Supplies and materials
Capital expenditures
Total pupil support services
Sites and buildings
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total sites and buildings
Debt service
Principal
Interest and fiscal charges
Total debt service
Total expenditures
Net change in fund balances
$
Actual
Over (Under)
Budget
Actual
–
–
71,064
113,918
140,726
325,708
–
–
153,492
63,193
–
216,685
–
–
82,428
(50,725)
(140,726)
(109,023)
38,773
19,597
81,013
27,629
100,226
267,238
2,244
–
1,777
4,021
2,957
–
834
3,791
713
–
(943)
(230)
7,244
21,896
62,286
91,426
125,575
54,896
2,110,185
60,800
803,847
12,098
3,167,401
106,640
44,710
2,271,883
40,842
587,092
12,098
3,063,265
(18,935)
(10,186)
161,698
(19,958)
(216,755)
–
(104,136)
125,111
61,161
2,246,326
79,635
521,874
184,340
3,218,447
1,336,698
360,977
1,697,675
1,327,376
356,777
1,684,153
(9,322)
(4,200)
(13,522)
1,281,497
394,248
1,675,745
10,374,061
9,239,869
(1,134,192)
9,415,447
(224,479)
957,681
Fund balances
Beginning of year
$
1,182,160
858,356
1,575,335
$
End of year
-89-
2,533,016
716,979
$
1,575,335
-90-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Special Education Revenue and Expenditures
Budget and Actual
for the Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Revenue
Local sources
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total expenditures
Excess (deficiency) of
revenue over expenditures
$
400,000
27,976,968
5,278,744
33,655,712
42,057,119
15,117,655
1,581,516
653,308
311,272
66,087
59,786,957
$ (26,131,245)
-91-
Actual
$
281,736
28,303,711
5,151,925
33,737,372
Over (Under)
Budget
$
42,049,618
15,533,730
1,128,806
658,085
301,674
105,029
59,776,942
$ (26,039,570)
(118,264)
326,743
(126,819)
81,660
(7,501)
416,075
(452,710)
4,777
(9,598)
38,942
(10,015)
$
91,675
Actual
$
343,268
27,001,306
5,031,964
32,376,538
40,271,942
14,481,773
1,099,322
518,973
298,462
37,097
56,707,569
$ (24,331,031)
INDEPENDENT SCHOOL DISTRICT NO. 196
Food Service Special Revenue Fund
Comparative Balance Sheet
as of June 30, 2014 and 2013
2014
Assets
Cash and temporary investments
Receivables
Accounts and interest
Due from other governmental units
Inventory
Prepaid items
$
2,888,915
2013
$
3,776
141,051
157,231
14,204
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
–
82,312
247,614
1,524
$
3,205,177
$
3,377,891
$
251,867
233,865
1,016
342,066
828,814
$
234,354
170,275
–
332,497
737,126
Fund balances
Nonspendable for inventory
Nonspendable for prepaid items
Restricted for food service
Total fund balances
157,231
14,204
2,204,928
2,376,363
Total liabilities and fund balances
$
-92-
3,046,441
3,205,177
247,614
1,524
2,391,627
2,640,765
$
3,377,891
INDEPENDENT SCHOOL DISTRICT NO. 196
Food Service Special Revenue Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
Budget
Revenue
Local sources
Investment earnings
Other – primarily meal sales
State sources
Federal sources
Total revenue
$
Expenditures
Current
Salaries
Employee benefits
Purchased services
Supplies and materials
Other expenditures
Capital outlay
Total expenditures
1,500
6,484,352
408,998
3,895,014
10,789,864
$
$
2,604
6,519,363
405,390
4,215,285
11,142,642
$
4,041,569
1,228,400
450,249
5,520,899
12,240
153,687
11,407,044
1,104
35,011
(3,608)
320,271
352,778
Actual
$
1,465
6,547,387
398,036
3,984,706
10,931,594
34,086
(42,674)
(45,986)
741,777
(2,260)
(221,313)
463,630
3,952,881
1,098,092
436,611
5,206,884
13,387
150,933
10,858,788
(153,550)
(264,402)
(110,852)
72,806
–
–
–
2,154
(153,550)
(264,402)
(110,852)
74,960
Other financing sources
Sale of capital assets
Net change in fund balances
Actual
4,007,483
1,271,074
496,235
4,779,122
14,500
375,000
10,943,414
Excess (deficiency) of revenue
over expenditures
2013
Over (Under)
Budget
Fund balances
Beginning of year
End of year
-93-
$
2,640,765
2,565,805
$ 2,376,363
$ 2,640,765
INDEPENDENT SCHOOL DISTRICT NO. 196
Community Service Special Revenue Fund
Comparative Balance Sheet
as of June 30, 2014 and 2013
2014
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Prepaid items
$
2,663,273
2013
$
919,100
16,192
103,650
259,328
950
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
1,710,079
944,415
22,299
31,328
355,293
–
$
3,962,493
$
3,063,414
$
306,625
253,358
260
319,160
879,403
$
341,518
252,282
233
379,513
973,546
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
16,192
1,679,272
1,695,464
22,299
865,820
888,119
Fund balances
Nonspendable for prepaid items
Restricted for community education programs
Restricted for early childhood family education programs
Restricted for school readiness
Restricted for adult basic education
Restricted for community service
Total fund balances
950
587,001
311,406
32,088
454,565
1,616
1,387,626
–
535,880
306,142
6,998
350,729
2,000
1,201,749
Total liabilities, deferred inflows of
resources, and fund balances
$
-94-
3,962,493
$
3,063,414
INDEPENDENT SCHOOL DISTRICT NO. 196
Community Service Special Revenue Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Revenue
Local sources
Property taxes
Investment earnings
Other – primarily tuition and fees
State sources
Federal sources
Total revenue
$
Expenditures
Current
Salaries
Employee benefits
Purchased services
Supplies and materials
Other expenditures
Capital outlay
Total expenditures
$
4,765,202
1,429,934
3,281,050
423,692
5,000
52,500
9,957,378
Excess (deficiency) of revenue
over expenditures
Other financing sources
Transfers in
Net change in fund balances
1,668,302
–
5,577,907
2,268,371
96,715
9,611,295
Actual
$
856,143
1,771
5,838,654
3,036,598
96,715
9,829,881
Over (Under)
Budget
$
4,704,016
1,385,962
3,260,104
379,202
4,898
17,676
9,751,858
(812,159)
1,771
260,747
768,227
–
218,586
Actual
$
(61,186)
(43,972)
(20,946)
(44,490)
(102)
(34,824)
(205,520)
1,661,685
710
5,518,136
2,159,955
126,816
9,467,302
4,713,691
1,467,647
3,111,450
384,981
3,792
40,221
9,721,782
(346,083)
78,023
424,106
(254,480)
125,413
107,854
(17,559)
111,605
(220,670)
185,877
406,547
(142,875)
Fund balances
Beginning of year
$
1,201,749
$
End of year
-95-
1,387,626
1,344,624
$
1,201,749
INDEPENDENT SCHOOL DISTRICT NO. 196
Capital Projects – Building Construction Fund
Comparative Balance Sheet
as of June 30, 2014 and 2013
2014
Assets
Cash and temporary investments
Cash and investments held by trustee
Total assets
Liabilities
Accounts and contracts payable
2013
$
2,201,685
9,065,980
$
2,664,812
103
$
11,267,665
$
2,664,915
$
3,114,929
$
1,146,937
Fund balances
Restricted for building projects funded by
certificates of participation
Restricted for alternative facilities program
Total fund balances
7,891,755
260,981
8,152,736
Total liabilities and fund balances
$
-96-
11,267,665
103
1,517,875
1,517,978
$
2,664,915
INDEPENDENT SCHOOL DISTRICT NO. 196
Capital Projects – Building Construction Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2013
2014
Budget
Revenue
Local sources
Investment earnings
Other
Total revenue
$
Expenditures
Capital outlay
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total expenditures
Excess (deficiency) of revenue
over expenditures
Other financing sources
Certificates of participation
Debt issuance premiums
Transfers in
Total other financing sources
Net change in fund balances
$
–
31,900
31,900
Actual
$
1,500
71,545
73,045
Over (Under)
Budget
$
1,500
39,645
41,145
Actual
$
81,369
37,533
1,335,708
–
12,306,964
–
13,761,574
81,776
37,655
2,005,488
2,386
11,089,446
125
13,216,876
(13,729,674)
(13,143,831)
585,843
(5,993,290)
13,710,406
–
6,020,675
19,731,081
13,572,494
185,525
6,020,570
19,778,589
(137,912)
185,525
(105)
47,508
–
–
6,637,900
6,637,900
6,001,407
6,634,758
Fund balances
Beginning of year
407
122
669,780
2,386
(1,217,518)
125
(544,698)
–
16,520
16,520
$
78,647
36,511
462,670
3,235
5,428,747
–
6,009,810
633,351
644,610
1,517,978
$
End of year
-97-
8,152,736
873,368
$
1,517,978
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund
Balance Sheet by Account
as of June 30, 2014
(With Partial Comparative Information as of June 30, 2013)
Other
Post-Employment
Benefits
General
Assets
Cash and temporary investments
Cash and investments held by trustee
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Due from other funds
Total assets
Liabilities
Due to other funds
$
10,933,173
14,889,879
$
9,113,293
172,583
25,635
34,035
28
1,631,006
–
Totals
2014
$
1,391,995
17,948
–
6,397
207
2013
12,564,179
14,889,879
$
10,505,288
190,531
25,635
40,432
235
12,263,239
40,065,344
10,504,304
263,530
28,891
100,993
–
$
35,168,626
$
3,047,553
$
38,216,179
$
63,226,301
$
–
$
–
$
–
$
14,171
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
172,583
16,650,731
16,823,314
17,948
2,543,288
2,561,236
190,531
19,194,019
19,384,550
263,530
18,714,413
18,977,943
Fund balances
Restricted for bond refundings
Restricted for debt service
Total fund balances
14,915,514
3,429,798
18,345,312
–
486,317
486,317
14,915,514
3,916,115
18,831,629
40,089,486
4,144,701
44,234,187
Total liabilities, deferred inflows of
resources, and fund balances
$
35,168,626
-98-
$
3,047,553
$
38,216,179
$
63,226,301
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
General
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
$
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
16,098,740
68,409
2,713
16,169,862
Other
Post-Employment
Benefits
$
14,250,000
2,806,320
45,811
17,102,131
Excess (deficiency) of revenue
over expenditures
2,507,818
701
422
2,508,941
Totals
2013
2014
$
830,000
1,669,188
450
2,499,638
18,606,558
69,110
3,135
18,678,803
$
15,080,000
4,475,508
46,261
19,601,769
19,493,505
86,670
3,502
19,583,677
15,530,000
4,816,939
152,101
20,499,040
(932,269)
9,303
(922,966)
Other financing sources (uses)
Refunding bonds issued
Debt issuance premiums
Bond refunding payments
Total other financing sources (uses)
2,230,000
140,408
(26,850,000)
(24,479,592)
–
–
–
–
2,230,000
140,408
(26,850,000)
(24,479,592)
12,100,000
811,026
–
12,911,026
Net change in fund balances
(25,411,861)
9,303
(25,402,558)
11,995,663
44,234,187
32,238,524
Fund balances
Beginning of year
End of year
43,757,173
$
18,345,312
-99-
477,014
$
486,317
$
18,831,629
(915,363)
$
44,234,187
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund – General Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
Budget
Actual
$ 16,055,414
–
2,713
16,058,127
$ 16,098,740
68,409
2,713
16,169,862
14,250,000
2,104,775
12,000
16,366,775
14,250,000
2,806,320
45,811
17,102,131
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
Excess (deficiency) of revenue
over expenditures
$
$
Actual
43,326
68,409
–
111,735
$ 16,489,752
84,781
2,962
16,577,495
–
701,545
33,811
735,356
14,235,000
3,108,901
151,651
17,495,552
(308,648)
(932,269)
(623,621)
(918,057)
–
–
–
–
2,230,000
140,408
(26,850,000)
(24,479,592)
2,230,000
140,408
(26,850,000)
(24,479,592)
12,100,000
811,026
–
12,911,026
(308,648)
(25,411,861)
$ (25,103,213)
11,992,969
Other financing sources (uses)
Refunding bonds issued
Debt issuance premiums
Bond refunding payment
Total other financing sources (uses)
Net change in fund balances
2013
Over (Under)
Budget
Fund balances
Beginning of year
End of year
-100-
43,757,173
31,764,204
$ 18,345,312
$ 43,757,173
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund – Other Post-Employment Benefits Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2014
(With Comparative Actual Amounts for the Year Ended June 30, 2013)
2014
Budget
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
$
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
Net change in fund balances
Actual
2,499,039
–
422
2,499,461
$
830,000
1,669,188
1,000
2,500,188
$
2,507,818
701
422
2,508,941
2013
Over (Under)
Budget
$
830,000
1,669,188
450
2,499,638
(727)
9,303
Fund balances
Beginning of year
8,779
701
–
9,480
Actual
$
–
–
(550)
(550)
$
1,295,000
1,708,038
450
3,003,488
10,030
2,694
477,014
$
End of year
-101-
486,317
3,003,753
1,889
540
3,006,182
474,320
$
477,014
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Net Position
as of June 30, 2014
Severance
Benefits
Assets
Current assets
Cash and temporary investments
Receivables
Accounts and interest receivable
Restricted assets
Cash and cash equivalents
Investments
Total assets
Liabilities
Current liabilities
Severance benefits payable
Claims payable
Unearned revenue
Total current liabilities
Long-term liabilities
Severance benefits payable
Net obligation for other
post-employment benefits
Total long-term liabilities
Total liabilities
Net position
Restricted for other post-employment
benefits
Unrestricted
Total net position
$
9,451,467
Other
Post-Employment
Benefits
$
–
Self-Insured
Dental
Benefits
$
Self-Insured
Health
Benefits
Total
90,118
$ 18,385,910
$ 27,927,495
26,169
–
–
–
26,169
–
–
9,477,636
32,728,523
16,651,507
49,380,030
–
–
90,118
–
–
18,385,910
32,728,523
16,651,507
77,333,694
3,486,487
–
–
3,486,487
–
–
–
–
–
10,570
–
10,570
–
2,705,429
6,546,645
9,252,074
3,486,487
2,715,999
6,546,645
12,749,131
10,013,078
–
–
–
10,013,078
–
10,013,078
16,570,564
16,570,564
–
–
–
–
16,570,564
26,583,642
13,499,565
16,570,564
10,570
9,252,074
39,332,773
–
(4,021,929)
32,809,466
–
–
79,548
–
9,133,836
32,809,466
5,191,455
9,133,836
$ 38,000,921
$ (4,021,929)
$
-102-
32,809,466
$
79,548
$
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Fund Net Position
Year Ended June 30, 2014
Other
Post-Employment
Benefits
Self-Insured
Dental
Benefits
Self-Insured
Health
Benefits
Total
$
$
278,127
5,616
283,743
$ 35,393,198
5,454,749
40,847,947
$ 40,250,350
5,460,365
45,710,715
–
5,462,592
–
5,462,592
–
–
313,130
313,130
–
–
36,241,201
36,241,201
951,131
5,462,592
36,554,331
42,968,054
(2,090)
(1,832,608)
(29,387)
4,606,746
2,742,661
38,996
5,111,766
–
5,150,762
36,906
3,279,158
(29,387)
4,606,746
7,893,423
29,530,308
108,935
4,527,090
30,107,498
79,548
$ 9,133,836
$ 38,000,921
Severance
Benefits
Operating revenue
Local sources
Contributions from governmental funds
Contributions from employees
Total operating revenues
Operating expenses
Severance benefits
Other post-employment benefits
Self-insured benefits
Total operating expenses
Operating income (loss)
Nonoperating revenue
Investment earnings
Change in net position
Net position
Beginning of year
End of year
$
949,041
–
949,041
951,131
–
–
951,131
(4,058,835)
$ (4,021,929)
$
-103-
3,629,984
–
3,629,984
32,809,466
–
$
-104-
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 2014
Severance
Benefits
Cash flows from operating activities
Received from assessments made to other funds
Received from employee contributions
Severance, other post-employment benefits,
and self-insurance claims
Net cash flows from operating activities
$
Other
Post-Employment
Benefits
Self-Insured
Dental
Benefits
Self-Insured
Health
Benefits
Total
$
$
$ 35,491,073
5,454,749
$ 40,348,225
5,460,365
949,041
–
3,629,984
–
278,127
5,616
(949,041)
–
(3,629,984)
–
Cash flows from investing activities
Purchase of investments
Sale of investments
Interest on investments
Net cash flows from investing activities
–
–
32,028
32,028
(6,500,250)
4,063,337
5,111,766
2,674,853
Net change in cash and cash equivalents
32,028
2,674,853
(27,241)
4,822,677
7,502,317
9,419,439
30,053,670
117,359
13,563,233
53,153,701
Cash and cash equivalents
Beginning of year
End of year
Reconciliation of operating income (loss) to net cash
flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Changes in assets and liabilities
Accounts receivable
Severance benefits payable
Net obligation for other post-employment
benefits
Claims payable
Unearned revenue
Net cash flows from operating activities
(310,984)
(27,241)
–
–
–
–
(36,123,145)
4,822,677
–
–
–
–
(41,013,154)
4,795,436
(6,500,250)
4,063,337
5,143,794
2,706,881
$ 9,451,467
$
32,728,523
$
90,118
$ 18,385,910
$ 60,656,018
$
$
(1,832,608)
$
(29,387)
$ 4,606,746
$ 2,742,661
$
(2,090)
–
2,090
–
–
–
–
220
–
220
2,090
–
–
–
1,832,608
–
–
–
2,146
–
–
118,056
97,655
1,832,608
120,202
97,655
$ 4,822,677
$ 4,795,436
–
-105-
$
–
$
(27,241)
INDEPENDENT SCHOOL DISTRICT NO. 196
Agency Funds
Combining Statement of Assets and Liabilities
as of June 30, 2014
Graduate
Credit
Program
LCTS
Grant
Total
Assets
Current assets
Cash and temporary investments
$
30,341
$
109,874
$
140,215
Liabilities
Current liabilities
Accounts and contracts payable
$
30,341
$
109,874
$
140,215
-106-
INDEPENDENT SCHOOL DISTRICT NO. 196
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 2014
Balance –
Beginning
of Year
Additions
Deletions
Balance –
End of Year
Graduate Credit Program
Assets
Cash and temporary investments
$
29,913
$
8,055
$
7,627
$
30,341
Liabilities
Accounts and contracts payable
$
29,913
$
8,055
$
7,627
$
30,341
LCTS Grant
Assets
Cash and temporary investments
$
121,291
$
75,717
$
87,134
$
109,874
$
–
121,291
–
$
27,729
10,434
50,000
$
27,729
21,851
50,000
$
–
109,874
–
$
121,291
$
88,163
$
99,580
$
109,874
$
151,204
$
83,772
$
94,761
$
140,215
$
–
151,204
–
$
27,729
18,489
50,000
$
27,729
29,478
50,000
$
–
140,215
–
$
151,204
$
96,218
$
107,207
$
140,215
Liabilities
Salaries and compensated absences payable
Accounts and contracts payable
Due to other governmental units
Total liabilities
Total – all agency funds
Assets
Cash and temporary investments
Liabilities
Salaries and compensated absences payable
Accounts and contracts payable
Due to other governmental units
Total liabilities
-107-
-108-
SECTION III
Statistical
STATISTICAL SECTION
This section of Independent School District No. 196’s (the District) comprehensive annual financial report (CAFR) presents
detailed information as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the District’s overall financial health.
Contents:
Page
Financial Trends
110–117
These schedules contain trend information to help the reader understand how the District’s financial
performance and well-being have changed over time.
Revenue Capacity
118–127
These schedules contain information to help the reader assess the District’s most significant local revenue
source, property taxes.
Debt Capacity
128–133
These schedules present information to help the reader assess the affordability of the District’s current
levels of outstanding debt and the District’s ability to issue additional debt in the future.
Demographic and Economic Information
135–139
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the District’s financial activities take place.
Operating Indicators
140–151
These schedules contain service and infrastructure data to help the reader understand how the information in
the District’s financial report relates to the services the District provides, and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the District’s CAFR for the relevant
year.
-109-
INDEPENDENT SCHOOL DISTRICT NO. 196
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental activities
Net investment in capital assets
Restricted for
Capital asset acquisition
Debt service
Other purposes
Unrestricted
Total governmental activities net position
Fiscal Year
2008
2005
2006
2007
$ 69,433,592
$ 81,835,420
$ 95,458,965
$ 103,319,797
5,968,529
3,286,123
4,143,352
12,972,575
7,674,309
2,587,629
2,714,168
6,827,933
5,684,074
4,362,373
2,971,469
10,897,111
7,405,149
6,135,754
3,818,417
27,241,919
$ 95,804,171
$ 101,639,459
$ 119,373,992
$ 147,921,036
-110-
2009
2010
2011
2012
2013
2014
$ 111,989,021
$ 119,230,936
$ 125,050,825
$ 132,049,464
$ 140,892,970
$ 148,790,976
3,801,856
6,606,010
4,289,513
26,636,430
272,613
4,243,774
4,802,276
20,067,683
1,900,381
4,710,365
4,285,838
22,415,867
1,195,907
3,478,996
3,796,239
25,951,166
1,546,791
3,048,044
3,899,144
29,225,638
3,109,569
3,146,047
3,665,502
27,764,005
$ 153,322,830
$ 148,617,282
$ 158,363,276
$ 166,471,772
$ 178,612,587
$ 186,476,099
-111-
INDEPENDENT SCHOOL DISTRICT NO. 196
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental activities
Expenses
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Unallocated depreciation
Interest and fiscal charges on debt
Total expenses
2006
2007
$ 8,968,491
7,360,345
120,450,092
3,069,387
44,705,910
10,759,944
17,298,222
21,967,112
749,823
9,374,977
5,937,810
7,484,115
9,185,031
267,311,259
$ 10,283,117
7,023,583
126,937,537
3,008,206
46,657,304
11,457,813
18,465,033
20,981,875
755,136
9,686,879
6,861,761
7,727,307
9,661,153
279,506,704
$ 9,484,268
7,633,812
132,937,600
3,140,928
51,392,350
12,831,921
19,048,297
23,362,778
698,075
9,784,347
7,612,062
7,888,195
8,682,186
294,496,819
$ 10,572,073
8,012,405
140,899,720
3,498,530
52,071,654
16,520,831
20,173,827
24,115,360
420,089
10,328,031
8,184,218
8,498,619
7,962,893
311,258,250
50,635
4,552,404
2,010
497,360
55,433
74,833
131,648
2,151
7,112,438
2,720,795
32,257,806
64,745
47,522,258
75,129
4,838,618
45,620
490,434
52,866
67,714
28,145
1,453
7,257,671
3,569,929
36,220,285
103,954
52,751,818
96,758
5,071,867
65,692
186,346
16,810
100,331
111,005
1,417
7,340,463
3,956,546
36,629,032
139,640
53,715,907
120,295
5,299,648
1,885
84,914
31,710
214,570
70,041
13,752
7,773,800
4,242,845
42,921,499
17,710
60,792,669
(219,789,001)
(226,754,886)
(240,780,912)
(250,465,581)
21,910,160
1,590,944
7,672,625
15,813,739
170,583,278
430,208
2,767,137
220,768,091
13,315,999
815,744
6,805,943
18,393,234
187,194,406
1,716,786
4,348,062
232,590,174
42,180,245
1,633,165
8,503,194
21,941,662
178,683,239
1,529,616
4,779,838
259,250,959
46,474,687
1,641,337
6,728,396
20,077,143
186,584,417
1,732,845
4,335,798
267,574,623
$ 5,835,288
$ 18,470,047
$ 17,109,042
Program revenues
Charges for services
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Operating grants and contributions
Capital grants and contributions
Total program revenues
Net (expense) revenue
General revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for community service
Property taxes, levied for facility improvements
Property taxes, levied for debt service
General grants and aids
Other general revenues
Investment earnings (loss)
Total general revenues
Change in net position
Fiscal Year
2008
2005
$
979,090
-112-
2009
2010
2011
2012
2013
2014
$ 10,676,349
7,231,136
139,395,913
4,379,357
52,646,589
17,746,580
22,449,912
32,544,041
551,497
10,634,039
8,999,897
8,822,145
6,927,751
323,005,206
$ 12,497,969
8,540,817
150,566,426
3,540,400
55,603,648
14,365,141
20,712,281
26,723,703
475,935
10,782,848
9,093,156
9,814,728
7,825,797
330,542,849
$ 11,180,500
8,294,596
147,871,836
3,771,098
56,254,830
13,330,690
22,136,945
25,708,804
480,313
10,846,263
9,231,014
9,918,941
7,841,877
326,867,707
$ 11,137,222
8,400,776
148,397,275
3,867,848
56,495,369
13,764,619
21,828,053
25,949,814
539,813
11,381,527
9,361,591
9,957,859
6,718,174
327,799,940
$ 11,433,970
8,309,187
147,547,387
3,878,014
57,500,259
16,280,078
22,089,783
23,639,275
598,093
10,942,769
9,754,914
10,385,661
5,894,160
328,253,550
$ 12,788,255
8,478,285
150,639,805
3,894,552
60,005,088
16,554,014
22,561,249
25,311,941
697,917
11,359,961
9,802,212
9,805,568
4,601,447
336,500,294
120,095
5,547,968
33,414
72,788
42,153
98,531
87,596
–
7,626,413
4,646,333
43,753,262
68,959
62,097,512
110,015
5,560,131
21,059
127,208
34,560
812,921
122,706
–
7,390,904
4,614,030
45,687,662
37,444
64,518,640
92,363
5,640,999
13,070
323,786
33,087
931,678
213,825
–
7,219,979
4,915,046
48,184,008
52,688
67,620,529
134,773
6,256,482
12,633
286,617
34,718
1,121,369
128,841
–
7,026,043
5,349,086
45,572,463
23,875
65,946,900
130,907
6,294,929
14,197
313,960
53,566
1,124,840
93,836
–
6,547,387
5,441,560
47,069,459
41,520
67,126,161
112,285
6,289,085
17,675
271,959
44,434
1,190,359
123,572
–
6,519,363
5,759,982
48,096,296
103,677
68,528,687
(260,907,694)
(266,024,209)
(259,247,178)
(261,853,040)
(261,127,389)
(267,971,607)
48,799,954
1,382,457
6,176,945
17,711,200
187,486,449
2,163,797
2,588,686
266,309,488
50,921,613
1,613,879
4,847,224
17,203,207
183,031,690
2,374,094
1,326,954
261,318,661
75,606,000
2,444,228
7,322,623
18,379,723
157,855,931
2,417,001
4,967,666
268,993,172
48,125,441
1,591,757
7,703,130
18,497,035
192,639,683
2,280,965
(876,475)
269,961,536
47,579,360
1,658,474
6,637,900
19,463,752
191,800,239
2,841,805
3,286,674
273,268,204
24,660,338
850,036
6,020,570
18,533,559
218,035,675
2,329,934
5,405,007
275,835,119
$ 5,401,794
$ (4,705,548)
$ 9,745,994
$ 12,140,815
$ 7,863,512
$ 8,108,496
-113-
INDEPENDENT SCHOOL DISTRICT NO. 196
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund
Reserved
Unreserved
Nonspendable
Restricted
Assigned
Unassigned
Total General Fund
All other governmental funds
Reserved
Unreserved, reported in
Special revenue funds
Capital Projects – Building Construction Fund
Debt Service Fund
Nonspendable
Restricted
Unassigned, reported in
Capital Projects – Building Construction Fund
Total all other governmental funds
Note:
Fiscal Year
2008
2005
2006
2007
$ 8,792,607
29,195,535
–
–
–
–
$ 8,325,259
21,909,176
–
–
–
–
$ 6,541,509
26,868,617
–
–
–
–
$ 6,554,348
34,285,964
–
–
–
–
$ 37,988,142
$ 30,234,435
$ 33,410,126
$ 40,840,312
$ 44,163,808
$ 24,097,996
$ 16,141,199
$ 11,476,258
1,943,576
(1,340,420)
3,592,026
–
–
1,286,659
(418,812)
4,056,330
–
–
1,439,066
–
5,682,445
–
–
1,927,249
–
7,350,087
–
–
–
–
–
–
$ 48,358,990
$ 29,022,173
$ 23,262,710
$ 20,753,594
The District implemented GASB Statement No. 54 in fiscal 2011, which established new fund balance
classifications.
-114-
2009
2010
2011
$ 3,620,075
36,048,482
–
–
–
–
$ 3,206,123
31,828,883
–
–
–
–
$
$ 39,668,557
$ 35,035,006
$ 35,497,752
$ 41,374,012
$ 39,755,826
$ 31,130,886
$ 5,870,499
$ 3,085,685
$
$
$
$
2,253,820
–
7,705,342
–
–
2,562,040
(1,396,911)
5,290,924
–
–
–
–
$ 15,829,661
$ 9,541,738
2012
–
–
773,859
2,218,810
8,962,579
23,542,504
–
–
–
–
319,961
9,393,920
$
–
–
843,827
1,195,907
9,487,053
29,847,225
–
$
2014
–
–
854,963
1,714,690
20,341,273
16,844,900
–
$
–
–
940,209
3,010,821
8,451,360
18,728,496
–
–
–
–
196,015
36,826,306
–
–
–
249,138
49,345,541
–
–
–
172,385
30,575,969
–
–
–
$ 37,022,321
$ 49,594,679
$ 30,748,354
(91,298)
$ 9,622,583
2013
-115-
INDEPENDENT SCHOOL DISTRICT NO. 196
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues
Local sources
Taxes
Investment earnings
Other
State sources
Federal sources
Total revenues
Expenditures
Current
Administration
District support services
Elementary and secondary
regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Capital outlay
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Refunding debt issued
Debt issued
Premium on debt issued
Discount on debt issued
Bond refunding payments
Capital leases and other loans
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Fiscal Year
2008
2005
2006
2007
$ 46,953,129
2,767,137
17,376,867
191,893,914
9,263,885
268,254,932
$ 39,377,763
4,133,353
19,987,729
212,166,538
9,508,742
285,174,125
$ 74,065,528
4,525,997
20,512,946
202,416,935
10,263,367
311,784,773
$ 74,697,557
3,961,904
21,182,866
216,030,229
11,896,836
327,769,392
9,764,833
7,328,083
9,930,846
6,986,387
9,647,124
7,570,746
10,293,805
8,012,337
123,554,056
3,145,684
43,817,566
11,045,046
17,524,847
17,865,811
749,823
8,976,737
5,910,474
19,373,009
128,580,799
3,063,062
46,752,194
11,538,175
19,163,704
20,399,004
755,136
9,622,671
6,874,186
36,743,734
132,069,330
3,136,167
50,942,815
12,745,304
19,406,860
19,173,883
698,075
9,932,991
7,591,026
17,303,531
138,688,332
3,501,957
52,056,253
16,489,090
19,977,362
25,540,858
420,089
10,153,258
8,125,587
11,970,869
15,487,305
4,866,574
289,409,848
16,990,392
5,960,809
323,361,099
18,976,990
5,196,882
314,391,724
17,269,095
4,625,339
327,124,231
(21,154,916)
(38,186,974)
(2,606,951)
–
–
–
37,500,000
61,573
–
–
–
–
37,561,573
–
–
3,885,000
20,125,000
584,157
–
(15,225,000)
1,719,548
7,745
11,096,450
–
–
3,958,369
–
–
–
(3,944,519)
–
9,329
23,179
$ 16,406,657
$ (27,090,524)
$ (2,583,772)
7.5%
8.0%
8.1%
-116-
645,161
6,766,236
(6,766,236)
11,085,000
–
474,801
–
(11,570,000)
4,280,000
6,108
4,275,909
$
4,921,070
6.9%
2009
2010
2011
2012
2013
2014
$ 73,939,516
1,602,779
22,093,951
217,577,040
12,076,767
327,290,053
$ 74,528,277
303,790
22,855,768
196,502,525
30,566,131
324,756,491
$ 103,540,368
108,110
23,736,052
190,544,694
13,612,715
331,541,939
$ 75,872,335
62,715
24,616,940
218,969,312
17,281,296
336,802,598
$ 75,534,830
183,896
24,762,575
224,715,822
12,289,808
337,486,931
$ 50,312,679
254,245
24,827,075
251,943,911
12,123,310
339,461,220
12,296,918
8,517,040
10,936,881
8,337,360
10,610,352
8,003,178
10,884,027
8,390,674
11,685,219
8,303,655
12,662,675
8,245,964
163971417
4,694,936
59,789,980
19,064,240
23,322,712
24,250,273
551,497
11,239,092
9,749,495
7,845,072
148,836,850
3,590,812
54,584,837
14,147,361
21,601,756
21,957,328
475,935
10,656,596
8,974,527
9,200,584
146,233,427
3,684,086
55,441,820
13,266,880
21,823,059
21,853,910
480,313
10,859,314
9,085,817
9,795,213
146,550,850
3,820,177
55,821,234
13,446,242
20,036,358
26,073,195
539,813
11,130,758
9,230,564
8,609,979
146,884,786
3,860,595
57,700,284
16,120,814
22,686,884
22,380,519
598,093
10,707,855
9,772,281
6,200,964
151,453,547
3,899,432
60,749,987
16,734,739
23,318,080
22,906,580
697,917
11,253,357
9,784,435
13,388,239
17,486,403
4,459,336
367,238,411
17,415,183
5,611,984
336,327,994
17,084,198
5,443,472
333,665,039
17,203,854
5,470,324
337,208,049
16,871,223
5,368,621
339,141,793
16,460,404
4,897,774
356,453,130
(39,948,358)
(11,571,503)
(2,123,100)
(405,451)
(1,654,862)
(16,991,910)
6,631,231
(6,631,231)
–
37,440,000
141,283
–
(3,835,000)
–
106,387
33,852,670
5,056,267
(5,056,267)
–
–
–
–
–
496,033
153,996
650,029
7,434,560
(7,434,560)
–
2,705,000
–
(41,187)
–
–
2,878
2,666,691
7,813,886
(7,813,886)
34,800,000
–
4,406,816
–
(11,185,000)
5,478,812
180,821
33,681,449
6,749,505
(7,456,023)
12,100,000
–
811,026
–
–
–
404,526
12,609,034
6,128,424
(6,128,424)
2,230,000
13,710,000
325,933
–
(26,850,000)
96,569
8,143
(10,479,355)
$ (6,095,688)
$ (10,921,474)
6.1%
7.0%
$
543,591
6.9%
$ 33,275,998
$ 10,954,172
$ (27,471,265)
6.9%
6.7%
6.2%
-117-
INDEPENDENT SCHOOL DISTRICT NO. 196
Governmental Activities Tax Revenues by Source and Levy Type
Last Ten Fiscal Years
(Accrual Basis of Accounting)
General
Purposes
Fiscal Year
2005
Note:
$
21,910,160
Community
Service
$
1,590,944
Property Tax
Capital Projects –
Facility
Improvement
$
7,672,625
Debt
Service
$
15,813,739
Total
$
46,987,468
2006
13,315,999
815,744
6,805,943
18,393,234
39,330,920
2007
42,180,245
1,633,165
8,503,194
21,941,662
74,258,266
2008
46,474,687
1,641,337
6,728,396
20,077,143
74,921,563
2009
48,799,954
1,382,457
6,176,945
17,711,200
74,070,556
2010
50,921,613
1,613,879
4,847,224
17,203,207
74,585,923
2011
75,606,000
2,444,228
7,322,623
18,379,723
103,752,574
2012
48,125,441
1,591,757
7,703,130
18,497,035
75,917,363
2013
47,579,360
1,658,474
6,637,900
19,463,752
75,339,486
2014
24,660,338
850,036
6,020,570
18,533,559
50,064,503
Legislative changes in the “tax shift” impacted the amount of tax revenue recognized in fiscal years 2006, 2011,
and 2014. These changes were offset by an adjustment to state aid payments of an equal amount.
-118-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Governmental Tax Revenues by Source and Levy Type
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General
Purposes
Fiscal Year
2005
$
21,895,000
Property Tax
Capital Projects –
Facility
Improvement
Community
Service
$
1,589,968
$
7,672,625
Debt
Service
$
15,795,536
Total
$
46,953,129
2006
13,346,262
817,183
6,805,943
18,408,375
39,377,763
2007
42,042,805
1,630,288
8,503,194
21,889,241
74,065,528
2008
46,310,560
1,636,329
6,728,396
20,022,272
74,697,557
2009
48,685,755
1,381,530
6,176,945
17,695,286
73,939,516
2010
50,881,903
1,610,696
4,847,224
17,188,454
74,528,277
2011
75,460,749
2,439,565
7,322,623
18,317,431
103,540,368
2012
48,070,886
1,592,020
7,703,130
18,506,299
75,872,335
2013
47,741,740
1,661,685
6,637,900
19,493,505
75,534,830
2014
24,829,408
856,143
6,020,570
18,606,558
50,312,679
Note 1: Beginning in fiscal 2008, the District’s levy for facilities improvement is recorded in the General Fund instead of
the Capital Projects – Building Construction Fund in accordance with state requirements.
Note 2: Legislative changes in the “tax shift” impacted the amount of tax revenue recognized in fiscal years 2006, 2011,
and 2014. These changes were offset by an adjustment to state aid payments of an equal amount.
-119-
INDEPENDENT SCHOOL DISTRICT NO. 196
Tax Capacity and Estimated Market Value of Property
Last Ten Fiscal Years
Tax Collection
Calendar Year
2005
Real and
Personal Property
Fiscal Disparities
Contribution
$
$
141,164,544
(10,765,722)
Tax Increment
$
(3,048,762)
Tax Capacity (1)
Tax Rate Determining
Value Subtotal
Percent
Increase
Amount
(Decrease)
$
127,350,060
12.8
2006
158,106,311
(11,366,546)
(3,659,382)
143,080,383
12.4
2007
172,644,203
(12,302,917)
(4,263,378)
156,077,908
9.1
2008
179,462,003
(13,972,061)
(4,549,883)
160,940,059
3.1
2009
179,552,596
(15,030,692)
(4,604,255)
159,917,649
(0.6)
2010
169,877,287
(16,063,641)
(4,480,095)
149,333,551
(6.6)
2011
159,044,236
(16,085,261)
(3,758,099)
139,200,876
(6.8)
2012
148,173,078
(15,228,004)
(3,364,482)
129,580,592
(6.9)
2013
140,967,953
(15,126,445)
(1,921,746)
123,919,762
(4.4)
2014
145,202,900
(14,651,943)
(2,002,926)
128,548,031
3.7
%
(1)
Tax capacity is calculated by applying class rates (for specific property classifications such as residential,
commercial, etc.) to the assessed market value. Class rates are periodically changed by the state.
Source:
Dakota County Department of Property Tax and Public Records
-120-
Fiscal Disparities
Distribution
$
12,716,437
Total Tax Capacity
$
Referendum Market Value
Percent
Increase
Amount
140,066,497
$ 12,442,495,600
13.3
13,616,888
156,697,271
13,957,795,062
12.2
15,169,829
171,247,737
15,169,386,575
8.7
17,418,603
178,358,662
15,685,495,575
3.4
20,392,039
180,309,688
15,593,464,050
(0.6)
21,289,265
170,622,816
14,638,612,100
(6.1)
21,042,211
160,243,087
13,695,749,525
(6.4)
19,083,897
148,664,489
13,379,616,185
(2.3)
17,944,344
141,864,106
12,717,603,775
(4.9)
17,217,872
145,765,903
13,089,930,995
2.9
-121-
%
INDEPENDENT SCHOOL DISTRICT NO. 196
Property Tax Rates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
Rate
Year
Collectible
General Fund
Independent School District No. 196
Community
Service Special
Debt
Revenue Fund
Service Fund
Total
Tax capacity rate
Market value rate
2005
2005
11.177
0.109
1.210
–
13.864
–
26.251
0.109
Tax capacity rate
Market value rate
2006
2006
11.780
0.224
1.095
–
14.679
–
27.554
0.224
Tax capacity rate
Market value rate
2007
2007
10.623
0.208
0.944
–
12.040
–
23.607
0.208
Tax capacity rate
Market value rate
2008
2008
10.146
0.213
0.793
–
10.197
–
21.136
0.213
Tax capacity rate
Market value rate
2009
2009
10.287
0.210
0.928
–
9.894
–
21.109
0.210
Tax capacity rate
Market value rate
2010
2010
12.918
0.223
1.013
–
11.460
–
25.391
0.223
Tax capacity rate
Market value rate
2011
2011
13.718
0.226
1.061
–
12.180
–
26.959
0.226
Tax capacity rate
Market value rate
2012
2012
14.102
0.221
1.116
–
13.222
–
28.440
0.221
Tax capacity rate
Market value rate
2013
2013
13.627
0.235
1.182
–
13.147
–
27.956
0.235
Tax capacity rate
Market value rate
2014
2014
13.325
0.258
1.149
–
13.132
–
27.606
0.258
(1)
Overlapping rates are those of local and county governments that apply to property owners within the District. Not
all overlapping rates apply to all the District’s property owners (e.g., the rates for special districts apply only to the
proportion of the District’s property owners whose property is located within the geographic boundaries of the
special district).
(2)
The miscellaneous other levy includes the Metropolitan Council, Mosquito Abatement, Transit District, Dakota
County CDA, and Light Rail. These miscellaneous levies vary slightly between municipalities.
Source: Dakota County Department of Property and Public Records
-122-
Overlapping Rates, Municipalities, and Townships
Apple Valley
Burnsville
Coates
Eagan
Farmington
Inver Grove
Heights
36.753
0.109
38.004
–
19.117
–
28.186
0.019
–
–
37.347
–
35.690
0.018
35.414
–
17.908
–
28.293
0.017
–
–
37.654
–
34.891
0.017
34.564
–
16.971
–
25.232
0.016
–
–
36.514
–
35.537
0.017
35.005
–
15.252
–
25.892
0.015
43.821
–
37.403
–
37.086
0.031
36.121
–
13.587
–
26.886
0.015
44.186
–
37.878
–
39.848
0.034
38.568
–
16.605
–
30.407
0.016
49.274
–
43.002
–
42.388
0.038
42.598
–
14.343
–
33.675
0.017
55.733
–
43.169
–
44.110
0.042
43.213
–
18.984
–
34.553
0.016
63.093
–
44.883
–
49.210
0.021
47.021
–
22.842
–
38.272
0.017
66.821
–
46.312
–
47.891
0.021
46.670
–
19.507
–
38.250
0.017
65.876
–
46.128
–
(continued)
-123-
INDEPENDENT SCHOOL DISTRICT NO. 196
Property Tax Rates
Direct and Overlapping (1) Governments (continued)
Last Ten Fiscal Years
Overlapping Rates, Municipalities, and Townships (continued)
Rate
Year
Collectible
Lakeville
Rosemount
Empire
Township
Vermillion
Township
Tax capacity rate
Market value rate
2005
2005
31.326
0.006
46.041
0.010
29.553
–
14.339
–
Tax capacity rate
Market value rate
2006
2006
31.610
0.008
43.755
0.008
24.473
–
12.468
–
Tax capacity rate
Market value rate
2007
2007
31.583
0.007
42.521
0.007
28.244
–
11.052
–
Tax capacity rate
Market value rate
2008
2008
34.195
0.007
42.440
0.006
25.452
–
17.820
–
Tax capacity rate
Market value rate
2009
2009
33.973
0.007
42.323
0.006
26.113
–
17.147
–
Tax capacity rate
Market value rate
2010
2010
36.920
0.007
43.457
0.007
27.737
–
16.643
–
Tax capacity rate
Market value rate
2011
2011
38.250
0.008
44.661
0.007
27.953
–
17.605
–
Tax capacity rate
Market value rate
2012
2012
39.051
0.008
46.994
–
30.845
–
18.664
–
Tax capacity rate
Market value rate
2013
2013
41.234
0.008
48.862
–
31.746
–
19.555
–
Tax capacity rate
Market value rate
2014
2014
40.696
0.007
47.676
–
31.164
–
17.466
–
-124-
Total Direct and Overlapping Rates
Dakota County
Miscellaneous
Other (2)
Apple Valley
Resident
Eagan Resident
Rosemount
Resident
27.754
0.007
5.729
–
96.487
0.225
87.920
0.135
105.775
0.126
26.318
0.006
5.344
–
94.906
0.248
87.509
0.247
102.971
0.238
25.127
0.005
5.116
–
88.741
0.231
79.082
0.229
96.371
0.220
25.184
0.005
4.393
–
86.250
0.235
76.605
0.233
93.153
0.224
25.821
–
4.328
–
88.344
0.241
78.144
0.225
93.581
0.216
27.261
–
4.420
–
96.920
0.256
87.479
0.239
100.529
0.229
29.149
0.005
4.644
–
103.140
0.269
94.427
0.248
105.413
0.238
31.426
0.006
5.021
–
108.997
0.269
99.440
0.244
111.881
0.227
33.421
–
5.341
–
115.928
0.256
104.990
0.252
115.580
0.235
31.827
–
4.998
–
112.322
0.279
102.681
0.275
112.107
0.258
-125-
INDEPENDENT SCHOOL DISTRICT NO. 196
Principal Property Taxpayers
Current Year and Nine Years Ago
Levy Year Collectible December 31,
2014
Taxable
Assessed Value
Taxpayer
Burnsville Center SPE, LLC
$
West Publishing Company
Flint Hills Resources, LP
Xcel Energy
Dakota Electric Association
Promenade Village Townhomes, LLC
Individual
Eagan Promenade, LLC
Aimco Woods of Burnsville, LLC
Principal Life Insurance Company
DDRA Community Centers Five, LP
JPT Industries, Inc.
Target Corporation
Total
$
104,000,000
73,492,000
62,372,500
55,662,300
44,255,200
36,605,400
34,395,200
33,075,200
28,031,500
25,965,100
–
–
–
2005
Rank
Percentage
of Total
Taxable
Assessed
Value
1
2
3
4
5
6
7
8
9
10
–
–
–
0.8 %
0.6
0.5
0.4
0.3
0.3
0.3
0.3
0.2
0.2
–
–
–
$
93,000,000
76,611,100
23,933,800
43,714,900
49,952,900
–
28,000,000
–
–
24,202,600
28,000,000
19,942,200
18,688,900
3.8 %
$
406,046,400
497,854,400
Source: Dakota County Department of Property Tax and Public Records
-126-
Taxable
Assessed Value
Rank
Percentage
of Total
Taxable
Assessed
Value
1
2
8
4
3
–
5
–
–
7
6
9
10
0.7 %
0.6
0.2
0.4
0.4
–
0.2
–
–
0.2
0.2
0.2
0.2
3.3 %
INDEPENDENT SCHOOL DISTRICT NO. 196
Property Tax Levies and Collections
Last Ten Fiscal Years
Levy Year
Collectible
December 31,
Total Tax
Levy for
Fiscal Year
Collected Within the Fiscal
Year of the Levy
Percentage
of Levy
Amount
2005
$ 51,988,792
$ 51,599,777
2006
75,857,551
74,993,323
2007
75,932,446
2008
$ 51,981,162
98.86
839,911
75,833,234
99.97
75,260,598
99.12
637,741
75,898,339
99.96
75,021,977
74,153,963
98.84
867,532
75,021,495
100.00
2009
75,161,647
74,066,346
98.54
1,038,155
75,104,501
99.92
2010
77,716,489
76,858,532
98.90
795,379
77,653,911
99.92
2011
76,514,703
75,577,446
98.78
853,232
76,430,678
99.89
2012
75,939,060
75,216,046
99.05
595,514
75,811,560
99.83
2013
73,876,495
73,303,172
99.22
291,442
73,594,614
99.62
78,338,055
N/A
N/A
N/A
N/A
N/A
(1)
$
Total Collections to Date
Percentage
of Levy
Amount
381,385
2014
99.25 %
Collections in
Subsequent
Years
99.99 %
N/A – Not Applicable
(1)
Only a portion of the calendar year 2014 taxes are collected by June 30, 2014. A total of $35,462,000 of 2014 taxes
were collected by June 30, 2014.
Source: Dakota County Department of Property Tax and Public Records
-127-
INDEPENDENT SCHOOL DISTRICT NO. 196
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
2005
$ 144,130,000
2006
139,310,000
39,175,000
945,000
15,389
11,468,841
2007
127,595,000
33,480,000
750,000
12,824
10,225,985
2008
115,215,000
29,730,000
560,000
10,259
13,074,455
2009
136,185,000
27,655,000
385,000
7,694
10,475,617
2010
123,615,000
25,150,000
225,000
5,129
8,794,032
2011
111,655,000
22,415,000
90,000
2,564
6,542,399
2012
101,765,000
41,070,000
–
–
9,909,921
2013
90,175,000
49,230,000
–
–
8,726,698
2014
51,730,000
47,975,000
–
–
7,594,863
Refunding Bonds
$
40,970,000
Capital Notes
$
1,155,000
State
Energy Loans
$
17,954
Capital Leases
$
11,127,120
N/A – Not Available
(1)
See the Schedule of Demographic and Economic Statistics on page 135 for Dakota County personal income and the
District’s population data.
Note:
Details regarding the District’s outstanding debt can be found in the notes to basic financial statements.
-128-
Certificates
of Participation
$
Total
–
$ 197,400,074
–
Percentage
of Personal
Income (1)
Per Capita (1)
0.01 %
1,357
190,914,230
0.01
1,302
–
172,063,809
0.01
1,170
–
158,589,714
0.01
1,073
–
174,708,311
0.01
1,162
–
157,789,161
0.01
1,035
2,705,000
143,409,963
0.01
941
2,555,000
155,299,921
0.01
1,015
2,400,000
150,531,698
0.01
984
15,955,000
123,254,863
N/A
786
-129-
INDEPENDENT SCHOOL DISTRICT NO. 196
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
and
Capital Notes
2005
$ 186,255,000
2006
Less Amounts
Available in Debt
Service Fund
$
Total
Percentage of
Estimated Actual
Market Value
of Property (1)
Per Capita (2)
1.34 %
1,149
19,073,025
$ 167,181,975
179,430,000
8,024,117
171,405,883
1.23
1,169
2007
161,825,000
9,584,400
152,240,600
1.00
1,035
2008
145,505,000
11,252,092
134,252,908
0.86
908
2009
164,225,000
7,707,637
156,517,363
1.00
1,041
2010
148,990,000
5,290,924
143,699,076
0.98
943
2011
134,160,000
4,697,250
129,462,750
0.95
849
2012
142,835,000
32,238,524
110,596,476
0.83
723
2013
139,405,000
44,234,187
95,170,813
0.75
622
2014
99,705,000
18,831,629
80,873,371
0.62
516
(1)
See the Schedule of Tax Capacity and Estimated Market Value of Property on pages 120–121 for information on
the market value of the District’s property.
(2)
See the Schedule of Demographic and Economic Statistics on page 135 for the District’s population data.
Note:
Details regarding the District’s outstanding debt can be found in the notes to basic financial statements.
-130-
INDEPENDENT SCHOOL DISTRICT NO. 196
Direct and Overlapping Debt
as of June 30, 2014
Tax Collection
Calendar Year
2012–2013
Taxable Net
Tax Capacity
Taxing Unit
Direct debt
ISD No. 196
Overlapping debt
Dakota County
Cities
Apple Valley
Burnsville
Eagan
Farmington
Inver Grove Heights
Lakeville
Rosemount
Town of Empire
Other
Metropolitan Council
Total overlapping debt
$
123,919,762
General Obligation
Bonded Debt (1)
$
99,705,000
Debt Applicable to
Tax Capacity in ISD No. 196
Amount
Percent
100.00 %
$
99,705,000
352,976,589
42,730,000
36.42
15,561,540
39,326,993
53,194,695
66,384,787
13,253,468
28,186,260
50,873,796
19,743,503
2,788,807
27,055,000
37,365,000
27,795,000
30,196,861
28,530,069
61,845,000
13,715,000
880,000
99.04
25.03
64.86
0.04
24.89
13.94
92.09
20.02
26,796,111
9,352,945
18,028,421
11,052
7,101,163
8,622,925
12,629,691
176,152
2,638,608,630
196,680,000
4.87
9,581,856
107,861,855
Total direct and overlapping debt outstanding
$
207,566,855
(1)
Excludes tax and aid anticipation debt, revenue debt, and general obligation debt supported by revenue.
Source:
Dakota County Department of Property Tax and Public Records
-131-
INDEPENDENT SCHOOL DISTRICT NO. 196
Legal Debt Margin Information
Last Ten Fiscal Years
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to limit
as a percentage of debt limit
Note:
Fiscal Year
2008
2005
2006
2007
$ 2,093,669,259
$ 2,275,407,986
$ 2,352,824,336
$ 2,339,019,608
167,181,975
171,405,883
152,240,600
134,252,908
$ 1,926,487,284
$ 2,104,002,103
$ 2,200,583,736
$ 2,204,766,700
7.99%
7.53%
6.47%
5.74%
Under state finance law, the District’s outstanding general obligation debt should not exceed 15 percent of total
market property value. By law, the general obligation debt subject to the limitation may be offset by amounts set
aside for the repayment of general obligation bonds.
Source: Dakota County Department of Property Tax and Public Records
-132-
2009
2010
2011
2012
2013
2014
$ 2,196,363,555
$ 2,215,419,945
$ 2,072,617,605
$ 2,006,942,428
$ 1,907,640,566
$ 1,963,489,649
156,517,363
143,744,858
129,462,750
110,596,476
95,170,813
80,873,371
$ 2,039,846,192
$ 2,071,675,087
$ 1,943,154,855
$ 1,896,345,952
$ 1,812,469,753
$ 1,882,616,278
7.13%
6.49%
6.25%
5.51%
4.99%
4.12%
Legal Debt Margin Calculation for Fiscal Year 2014
Estimated market value – 2014
Debt limit (15% of market value)
Debt applicable to limit
General obligation bonds
Less amount set aside for repayment of
general obligation debt
Total net debt applicable to limit
Legal debt margin
-133-
$13,089,930,995
1,963,489,649
99,705,000
(18,831,629)
80,873,371
$ 1,882,616,278
-134-
INDEPENDENT SCHOOL DISTRICT NO. 196
Demographic and Economic Statistics
Last Ten Fiscal Years
Dakota County
ISD No. 196
Calendar Population
(1)
Year
Personal
Per Capita
Population
Income
Personal
(2)
(Thousands) (2) Income (2)
Education
Level in Years
School
Unemployment
Median
Enrollment
of Formal
Age (2) Schooling (3)
(4)
Rate (2)
2004
145,439
376,537
$ 15,286,872
$ 40,599
34.7
95 %
28,382
4.0
2005
146,683
381,027
15,915,188
41,769
35.2
94
28,269
3.7
2006
147,108
385,076
16,627,273
43,179
35.7
95
28,040
3.6
2007
147,786
389,418
17,541,174
45,045
34.6
95
27,873
4.1
2008
150,298
393,528
18,242,899
46,357
36.0
95
27,683
4.9
2009
152,443
390,478
17,594,416
45,059
34.6
95
27,443
7.3
2010
152,440
397,650
17,970,760
45,192
36.8
95
27,454
6.7
2011
153,051
400,480
18,612,486
46,475
36.5
95
27,404
6.1
2012
153,051
405,088
20,192,381
49,847
36.7
N/A
27,168
4.9
2013
156,879
408,509
N/A
N/A
36.7
N/A
27,202
4.7
N/A – Not Available
Data sources:
(1) District population is based upon an annual school district census and U.S. census. This information is certified to
the state and is subsequently used in determining community education revenue.
(2) 2013 comprehensive annual financial report for Dakota County, Minnesota
(3) Dakota County Demographics Report.
(4) Actual number of students enrolled in the District on October 1 of each school year, based on the District’s official
October 1 enrollment reports.
-135-
INDEPENDENT SCHOOL DISTRICT NO. 196
Principal Employers
by Major Municipalities in the District
2013 and 2006
2013
Employer
Employees
Rank
Dakota County
4,000
850
260
250
145
140
90
75
55
50
2
8
21
22
25
26
27
28
29
30
Apple Valley
ISD No. 196
Target
Wal-Mart
Dakota County
Uponor Wirsbo Company
Minnesota Zoological Gardens
Apple Valley Health Care Center
Apple Valley Redi-Mix
Apple Valley Ford
Wings Financial Federal Credit Union
1,418
690
475
380
336
300
290
270
216
210
6
11
13
16
17
18
19
20
23
24
Eagan
Thomson Reuters
Blue Cross & Blue Shield
U.S. Postal Service
Ecolab Research Facility
United Parcel Service
Coca-Cola Midwest Bottling
Wells Fargo Mortgage
Prime Therapeutics
Argosy University
Dart Transit
7,700
3,250
2,000
1,500
1,400
800
700
650
425
410
1
3
4
5
7
9
10
12
14
15
(1)
Percentage
of Total
Dakota County
Employment
408,509
Rosemount
ISD No. 196
Flint Hills Resources
Cannon Equipment
Dakota County Technical College
Spectro Alloys Corporation
Webb Properties, LLC
Greif Brothers Corporation
Wayne Transportation
Astro Plastics
Endres Processing, LLC
Total
City
Population
Percentage
of Total City
Population
Employment
22,711
17.61 %
3.74
1.14
1.10
0.64
0.62
0.40
0.33
0.24
0.22
0.98 %
0.21
0.06
0.06
0.04
0.03
0.02
0.02
0.01
0.01
50,326
2.82
1.37
0.94
0.76
0.67
0.60
0.58
0.54
0.43
0.42
0.35
0.17
0.12
0.09
0.08
0.07
0.07
0.07
0.05
0.05
11.86
5.01
3.08
2.31
2.16
1.23
1.08
1.00
0.65
0.63
1.88
0.80
0.49
0.37
0.34
0.20
0.17
0.16
0.10
0.10
64,900
29,335
137,937
21.27 %
7.18 %
Principal employers information for years before 2006 is not readily available.
Source: Minnesota Department of Employment and Economic Development, 2013 comprehensive annual financial reports
for the City of Apple Valley, City of Eagan, and United States Census Bureau.
-136-
2006 (1)
Employer
Employees
Rank
Dakota County
Percentage
of Total
Dakota County
Employment
385,076
Rosemount
ISD No. 196
Flint Hills Resources
Cannon Equipment
Dakota County Technical College
Spectro Alloys Corporation
Webb Properties, LLC
Greif Brothers Corporation
Wayne Transportation
Astro Plastics
Endres Processing, LLC
4,000
850
260
250
145
140
90
75
55
50
2
10
16
17
22
23
27
28
29
30
Apple Valley
ISD No. 196
Dakota County
Fischer Sand & Aggregate Company
NWA Federal Credit Union
Uponor Wirsbo Company
City of Apple Valley
Apple Valley Ford
Wal-Mart
Apple Valley Medical Center
Minnesota Zoological Gardens
1,913
349
295
217
204
178
155
135
120
120
5
14
15
18
19
20
21
24
25
25
Eagan
West Group
Blue Cross & Blue Shield
Northwest Airlines
Lockheed Martin Tactical Defense
U.S. Postal Service
United Parcel Service
Coca-Cola Bottling
Ecolab Research Facility
Wells Fargo Mortgage
Prime Therapeutics
6,000
3,300
2,300
1,600
1,570
1,435
900
700
700
550
1
3
4
6
7
8
9
11
11
13
Total
City
Population
Percentage
of Total City
Population
Employment
17,740
22.55 %
4.79
1.47
1.41
0.82
0.79
0.51
0.42
0.31
0.28
1.04 %
0.22
0.07
0.06
0.04
0.04
0.02
0.02
0.01
0.01
48,875
3.91
0.71
0.60
0.44
0.42
0.36
0.32
0.28
0.25
0.25
0.50
0.09
0.08
0.06
0.05
0.05
0.04
0.04
0.03
0.03
9.12
5.02
3.50
2.43
2.39
2.18
1.37
1.06
1.06
0.84
1.56
0.86
0.60
0.42
0.41
0.37
0.23
0.18
0.18
0.14
65,764
28,656
132,379
-137-
21.65 %
7.44 %
INDEPENDENT SCHOOL DISTRICT NO. 196
Employees by Classification
Last Ten Fiscal Years
2005
Administrators/principals (1)
Supervisors/special staff
Teachers/nurses
Clerical
Building chiefs and custodians
Food service
Truck drivers/mechanics/bus driver
Non-licensed specialists
Total
2006
2007
Fiscal Year
2008
91
57
2,366
903
182
167
247
35
94
58
2,685
1,101
208
201
271
32
99
60
2,351
1,052
228
209
270
42
103
64
3,002
1,165
261
248
297
45
4,048
4,650
4,311
5,185
(1)
District office cabinet, principals, secondary school building assistant principals, and principals on special
assignment.
Note:
This schedule is a headcount based on assignment—if an employee has multiple assignments, they are reflected
multiple times.
Source: ISD No. 196 – Human Resources Department – Query of the HRPAY system
-138-
2009
2010
2011
2012
2013
2014
112
69
3,013
1,112
255
248
322
56
106
60
2,724
1,003
227
189
273
42
86
56
2,419
893
204
185
266
51
106
56
2,386
875
207
188
258
44
109
58
2,542
928
204
189
266
46
104
59
2,537
950
203
181
255
52
5,187
4,624
4,160
4,120
4,342
4,341
-139-
INDEPENDENT SCHOOL DISTRICT NO. 196
Operating Indicators
Standardized Testing and Graduation Rates
Last Ten Fiscal Years
2005
2006
Fiscal Year
2008
2007
Standardized tests
MCA Reading (1)
Grade 3
Grade 4
Grade 5
Grade 6
Grade 7
Grade 8
Grade 10
87 %
–
90
–
83
–
90
89 %
86
86
82
74
75
78
86 %
81
83
71
77
71
74
85 %
79
84
76
72
76
82
MCA Math (1)
Grade 3
Grade 4
Grade 5
Grade 6
Grade 7
Grade 8
Grade 11
88
–
91
–
84
–
83
86
80
69
67
63
64
44
87
83
75
70
70
61
49
90
81
80
71
64
65
46
–
–
–
–
–
–
–
–
–
43.1
40.6
57.3
–
–
–
–
61.3
57.6
65.4
59.9
–
–
–
–
63.5
53.6
70.9
56.7
23.4
23.3
MCA Science (1)
Grade 5
Grade 8
High school
MAP (Measures of Academic Progress) (2)
Reading
Grade 2–5
Grade 6–7
Math
Grade 2–5
Grade 6–7
ACT
Average composite score
National Merit Scholars
Commended
Finalists and semifinalists
Attendance percentages
Kindergarten
1st grade
2nd grade
3rd grade
4th grade
5th grade
6th grade
7th grade
8th grade
9th grade
10th grade
11th grade
12th grade
All grades
Graduation data (3)
District graduation rates
State graduation rate
23.8
23.8
20
15
39
19
33
19
26
14
96.03
96.34
96.37
96.62
96.52
96.42
96.16
95.85
95.40
95.90
95.08
93.91
92.05
95.68
96.28
96.61
96.57
96.57
96.50
96.06
95.74
95.43
95.80
95.24
94.10
92.47
96.00
96.30
96.50
96.70
96.50
96.60
96.30
96.10
95.60
95.70
94.70
94.30
91.80
96.20
96.30
96.60
96.60
96.60
96.50
96.40
96.00
95.90
95.90
95.10
94.00
90.40
95.57 %
95.61 %
94.60 %
94.50 %
96 %
90 %
94 %
91 %
95 %
N/A
95 %
74 %
N/A – Not Available
(1)
Percent of students scoring at or above proficiency on the Minnesota Comprehensive Assessments (MCA).
(2)
Percent of students who met or exceeded their mean growth projection.
(3)
To comply with U.S. Department of Education reporting requirements, calculations for high school graduation rates have changed. The state graduation rates shown for fiscal
2008 and thereafter, and the District rates shown for fiscal year 2012, are percentages of students graduating from high school within four years after they enrolled in Grade 9.
Students who took an additional year to meet graduation requirements are not included in this calculation.
Source: State graduation rates obtained from the Minnesota Department of Education
Standardized testing results for the District are from the “Annual Report on Curriculum, Instruction, and Student Achievement,” prepared by the ISD No. 196 Teaching and
Learning Department
-140-
2009
2010
2011
2012
2013
2014
86 %
82
81
80
74
74
85
83 %
81
84
78
74
78
85
87 %
83
89
83
78
79
84
87 %
83
86
85
81
79
87
64 %
63
74
67
65
65
75
63 %
61
76
68
64
66
71
91
85
77
70
69
62
57
90
87
81
77
70
63
56
80
78
66
54
60
54
64
77
76
68
64
61
65
54
76
77
68
66
67
63
68
76
77
70
67
67
66
65
55.3
41.2
63.5
53.4
49.3
66.9
57
46
65
61
46
68
66
51
68
71
56
69
68.8
58.9
67.1
58.3
69.5
60.7
63.1
61.3
64.3
62.5
72.3
61.0
73.0
60.2
71.5
61.4
75.7
60.3
72.9
67.8
66.3
55.5
65.0
60.3
23.9
24.0
24.0
24.1
24.0
24.1
40
19
39
19
29
12
36
16
36
16
29
15
96.30
96.20
96.40
96.60
96.60
96.40
96.20
95.90
95.70
96.00
95.10
94.60
90.70
95.20
96.00
96.00
96.20
96.20
96.00
95.80
95.70
95.30
95.70
95.40
94.70
91.70
95.20
96.06
96.27
96.34
96.32
96.25
95.80
95.66
95.25
96.38
95.58
94.87
93.80
96.20
96.20
96.60
96.60
96.40
96.50
96.10
95.80
95.80
96.20
95.50
94.20
91.50
95.80
96.00
96.20
96.40
96.30
96.20
95.80
95.40
95.00
96.10
95.30
94.90
91.70
96.40
96.10
96.30
96.50
96.40
96.30
95.50
95.60
95.40
96.10
95.50
94.60
92.10
95.59 %
95.40 %
95.68 %
95.68 %
95.47 %
95.10 %
95 %
74 %
95 %
76 %
95 %
77 %
86 %
78 %
89 %
80 %
-141-
N/A
N/A
INDEPENDENT SCHOOL DISTRICT NO. 196
Capital Asset Statistics by Program and Classification
Last Ten Fiscal Years
2005
Program
Administration
District support services
Elementary and secondary
regular instruction
Vocational education
Special education
Community education
Instructional support
Transportation
Food service
Sites and buildings
Sites and buildings – unallocated
Total program
Classification
Land
Land improvements
Building
Equipment
Eligible pupil transportation vehicle
Food service equipment
Property and equipment under
capital leases
Total classification
Construction in progress
Total classification and
construction in progress
$
66,702
1,286,791
2006
$
141,342
1,180,667
Fiscal Year
2008
2007
$
132,142
1,227,903
$
147,409
1,025,661
2,397,333
94,868
141,194
10,000
196,698
9,282,064
1,691,344
1,522,753
293,449,598
2,514,297
116,952
191,810
60,355
183,376
10,020,266
1,672,695
1,784,792
298,721,129
2,484,307
126,666
212,067
68,350
159,086
10,807,062
1,728,313
1,959,012
299,131,493
2,496,662
154,190
228,326
59,378
232,944
11,780,723
1,947,582
2,153,834
337,772,769
$ 310,139,346
$ 316,587,681
$ 318,036,400
$ 357,999,478
$
$
$
$
8,870,712
9,119,795
254,749,989
9,742,503
9,695,127
1,953,604
8,870,712
9,741,173
257,058,566
11,187,475
10,036,694
1,931,750
8,870,712
9,741,173
257,423,527
11,462,669
10,934,816
1,987,368
8,870,712
9,886,433
292,938,345
13,040,963
11,804,100
2,242,901
16,052,326
310,184,056
17,761,310
316,587,681
17,616,134
318,036,400
19,216,024
357,999,478
12,066,972
42,572,146
55,022,066
29,026,823
$ 322,251,028
$ 359,159,827
$ 373,058,466
$ 387,026,301
Source: ISD No. 196 Finance Department
-142-
2009
$
179,261
1,016,096
2010
$
203,816
990,747
2011
$
201,217
932,471
2012
$
198,717
862,520
2013
$
190,127
1,010,232
2014
$
190,908
1,052,752
8,760,956
160,600
276,257
52,310
225,944
12,781,307
1,984,681
2,320,109
361,308,814
8,949,532
157,451
286,452
52,310
196,515
13,537,639
2,009,242
2,496,147
367,140,887
9,017,233
143,323
292,624
56,877
196,710
13,768,324
2,045,907
2,606,356
369,999,764
9,005,469
140,590
319,752
48,020
181,009
13,199,928
2,110,819
3,596,095
380,961,031
9,019,255
166,854
324,676
42,437
175,634
14,019,124
2,164,109
3,711,558
385,485,390
9,156,130
166,854
345,565
42,437
158,389
14,931,523
2,296,422
4,766,294
395,222,661
$ 389,066,335
$ 396,020,738
$ 399,260,806
$ 410,623,949
$ 416,309,396
$ 428,329,935
$
$
$
$
$
$
8,870,712
10,153,666
314,011,440
21,689,145
12,813,825
2,311,523
8,870,712
10,421,635
318,610,626
22,391,107
13,995,557
2,372,098
8,870,712
10,826,510
320,226,324
24,655,160
14,223,093
2,436,108
8,870,712
11,327,871
329,828,810
27,191,998
13,541,853
2,552,543
8,870,712
11,616,641
332,834,757
28,391,134
14,358,205
2,605,833
8,870,712
12,841,906
334,572,452
29,075,405
15,409,291
2,712,415
19,216,024
389,066,335
19,359,003
396,020,738
18,022,899
399,260,806
17,310,162
410,623,949
17,207,108
415,884,390
17,227,800
420,709,981
3,608,373
1,059,415
3,748,287
271,931
425,007
7,619,954
$ 392,674,708
$ 397,080,153
$ 403,009,093
$ 410,895,880
$ 416,309,397
$ 428,329,935
-143-
INDEPENDENT SCHOOL DISTRICT NO. 196
Expenditures per Student (Average Daily Membership)
Last Ten Fiscal Years
2005
Administration
$
2006
347
District support services
$
Fiscal Year
2008
2007
355
$
348
$
374
261
250
273
291
4,393
4,599
4,769
5,044
112
110
113
127
Special education instruction
1,558
1,672
1,839
1,893
Instructional support services
393
413
460
600
Pupil support services
623
685
701
727
Sites and buildings
635
730
692
929
27
27
25
15
Food service
319
344
359
369
Community service
210
246
274
296
Capital outlay
689
1,314
625
435
Debt service
724
821
873
796
Elementary and secondary regular instruction
Vocational education instruction
Fiscal and other fixed cost programs
Total expenditures
Average daily membership
$
10,290
28,124
$
11,566
27,957
$
11,352
27,694
$
11,898
27,495
Note 1: Includes all governmental fund expenditures.
Note 2: Expenditures for 2009 were unusually high due to the District issuing $37.44 million of general obligation taxable
OPEB bonds, reported as both an other financing source and expenditure in the governmental funds in the year of
issuance.
Source: Average daily membership from the Minnesota Department of Education
-144-
2009
$
$
2010
450
$
2011
402
$
2012
392
$
2013
402
$
2014
436
$
470
312
306
295
310
310
306
5,999
5,466
5,396
5,417
5,482
5,626
172
132
136
141
144
145
2,188
2,005
2,046
2,063
2,154
2,257
698
520
490
497
602
622
853
793
805
741
847
866
887
806
806
964
835
851
20
17
18
20
22
26
411
391
401
411
400
418
357
330
335
341
365
363
287
338
361
318
231
497
803
846
831
838
830
793
13,436
27,332
$
12,352
27,228
$
12,313
$
27,099
12,465
27,053
-145-
$
12,658
26,793
$
13,241
26,921
INDEPENDENT SCHOOL DISTRICT NO. 196
Food Service
School Lunch Program Data
Last Ten Fiscal Years
Participation
as a Percentage
of Average Daily
Attendance
Year Ended
June 30,
Average Daily
Attendance (1)
Total
Lunches
Served
Days
Average Daily
Participation
2005
24,113
2,438,240
174
14,013
58.1 %
2006
24,551
2,417,581
174
13,894
56.6
2007
24,212
2,513,074
174
14,443
59.7
2008
24,011
2,556,827
175
14,610
60.8
2009
23,877
2,661,364
175
15,208
63.7
2010
23,903
2,646,001
173
15,295
64.0
2011
23,857
2,668,882
175
15,251
63.9
2012
23,868
2,633,781
174
15,137
63.4
2013
23,602
2,398,031
170
14,106
59.8
2014
24,571
2,385,935
165
15,203
61.8
(1)
Attendance is deemed to be 95 percent of enrollment.
Source: ISD No. 196 Summary: Food Service Statistics Reports
-146-
Free Lunch
Number
Served
Percent
of Total
Reduced Lunch
Percent
Number
of Total
Served
338,548
13.9 %
119,238
4.9 %
370,837
15.3
129,527
5.4
389,665
15.5
141,518
5.6
418,004
16.3
156,800
6.1
445,673
16.7
167,164
6.3
517,890
19.6
177,497
6.7
563,511
21.1
186,803
7.0
625,915
23.8
168,576
6.4
606,438
25.3
170,748
7.1
643,503
26.9
165,163
6.9
-147-
INDEPENDENT SCHOOL DISTRICT NO. 196
School Facilities
as of June 30, 2014
Facility
Use
Constructed
Elementary schools
Cedar Park
Deerwood
Diamond Path
Echo Park
Glacier Hills
Greenleaf
Highland
Northview
Oak Ridge
Parkview
Pinewood
Red Pine
Rosemount
Shannon Park
Southview
Thomas Lake
Westview
Woodland
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
School
1977
1987
1970
1979
1993
1975
1986
1960
1991
1970
1990
1995
1960
1990
1967
1979
1964
1988
16.64
(3a)
40.00
16.29
15.01
30.40
(3b)
39.50
9.95
13.00
17.31
13.09
(3c)
13.50
(3d)
15.00
18.00
18.43
Middle schools
Black Hawk
Dakota Hills
Falcon Ridge
Rosemount
Scott Highlands
Valley
School
School
School
School
School
School
1994
1989
1996
1918
1979
1972
38.81
(3e)
32.46
(3c)
40.00
32.74
High schools
Apple Valley
Eagan
Eastview
Rosemount
School of Environmental Studies
School
School
School
School
School
1976
1990
1997
1963
1995
80.00
94.00
54.00
120.13
12.25
School
School
School
Special/Early Child Education
Early Child/Adult Education
2006
1997
1993
1995
1994
N/A
(3f)
1.59
N/A
N/A
Office
Office
Office/Maintenance/Warehouse
Office
2006
1972
1972
1984
2.10
40.00
(3f)
9.50
Area Learning Center and Transition Plus
Dakota Ridge
Cedar Valley Learning Center
Early Childhood Learning Center
Rahncliff Learning Center
District Office
District Service Center
Facilities
District Office East
Acres
N/A – Not Available
(1)
All rooms dedicated for instructional purposes, including regular classrooms, portable classrooms, computer labs, art rooms, band/choir/music
rooms, special services rooms, science rooms, F.A.C.S. rooms, and industrial technology rooms.
(2)
Enrollment is defined as the adjusted ADMs served excluding resident students tuitioned out to other Minnesota school districts. Students served by
the school of environmental studies are included in the students’ home high school
(3)
Joint sites
(a) with Black Hawk Middle School
(b) with Scott Highlands Middle School
(c) with Rosemount High School
(d) with Valley Middle School
(e) with Eagan High School
(f) with District Service Center/Facilities/Dakota Ridge
Source: Building square footage totals are based on Minnesota Department of Education February 14, 2013 Building Age Report; enrollment based on
Minnesota Department of Education August 9, 2013 School ADM Served Report. Years of construction and acreages are based on district property
records.
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Classrooms (1)
Square Footage
Capacity
Enrollment (2)
29
35
39
45
39
50
43
37
45
39
44
47
38
47
46
34
41
37
69,678
77,060
76,880
83,824
80,017
84,530
85,497
67,743
80,000
77,165
85,328
88,784
73,251
83,936
72,391
66,312
68,028
80,043
595
595
725
790
680
835
725
705
680
680
815
815
660
770
790
595
725
680
699
591
758
653
691
914
741
423
632
748
619
927
650
840
651
398
439
537
71
64
73
61
60
60
198,534
223,560
197,014
172,796
163,535
186,598
1,200
1,300
1,200
1,055
1,030
1,165
820
1,174
1,112
1,175
938
892
83
87
97
91
53
360,104
382,970
338,242
401,248
71,171
1,990
2,040
2,015
2,015
400
1,645
2,038
2,080
2,025
369
18
26
6
N/A
N/A
27,659
50,338
13,730
22,939
13,744
310
160
309
200
N/A
234
74
–
242
34
N/A
N/A
N/A
N/A
25,600
23,937
28,964
18,677
368
N/A
N/A
N/A
–
–
–
–
-149-
INDEPENDENT SCHOOL DISTRICT NO. 196
Building Permits Issued by Major Cities
Last Ten Fiscal Years
Total Permits
Calendar Year
Number
Value
New Residential Permits (1)
Number
Value
City of Rosemount
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1,262
1,209
1,015
1,403
1,698
968
924
2,359
2,251
2,471
$
127,366,244
127,153,725
81,595,018
69,195,590
72,477,392
34,398,343
33,716,925
28,753,846
38,804,214
42,084,362
402
290
159
76
46
38
38
16
59
93
$
102,666,682
89,053,918
46,503,749
27,084,690
16,952,136
9,325,000
7,552,704
4,834,000
16,832,849
26,136,626
958
809
689
745
3,017
2,688
2,995
4,248
4,438
4,428
69,853,000
63,201,500
55,520,000
74,422,000
30,292,500
44,857,000
59,290,047
21,248,500
41,228,000
49,800,000
143
78
44
57
21
31
61
31
47
63
49,510,000
30,494,000
14,169,000
20,022,000
5,480,000
7,991,000
35,346,000
7,929,000
12,284,000
24,700,000
2,260
2,010
1,885
2,638
4,078
2,400
2,616
2,259
2,699
7,455
102,382,300
105,151,600
97,526,000
136,845,515
86,610,469
55,050,142
56,977,150
59,743,157
109,835,569
218,669,781
147
107
119
67
30
13
32
73
154
188
22,814,000
24,217,000
22,289,000
20,502,000
8,972,000
3,920,000
9,481,442
20,912,987
37,114,705
70,828,088
City of Apple Valley
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
City of Eagan
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(1)
Includes single family homes, duplexes, quad homes, townhomes, multi-unit, and condominiums.
Note:
The District includes portions of nine municipalities. The above table includes the three main municipalities within
the District and is representative of growth in the area. These cities maintain building permit information on a
calendar year.
Source: City of Rosemount, City of Apple Valley, and City of Eagan
-150-
INDEPENDENT SCHOOL DISTRICT NO. 196
Students – Average Daily Membership (ADM)
Last Ten Fiscal Years
Year
Ended
June 30,
ADM (for Students Served or Tuition Paid)
Total
Early Childhood
Percent
and
Increase
Kindergarten –
Handicapped Kindergarten Elementary Secondary Number (Decrease)
Total Pupil Units
Percent
Increase
Number (Decrease)
2005
334.54
1,625.84
12,422.88
13,741.17
28,124.43
(0.2) % 32,654.31
(0.1) %
2006
344.82
1,656.02
12,206.24
13,740.72
27,947.80
(0.6)
32,443.12
(0.6)
2007
360.40
1,645.73
12,029.91
13,657.96
27,694.00
(0.9)
32,160.23
(0.9)
2008
367.01
1,584.83
11,899.66
13,643.32
27,494.82
(0.7)
32,062.56
(0.3)
2009
377.49
1,706.23
11,842.79
13,405.61
27,332.12
(0.6)
31,781.05
(0.9)
2010
367.87
1,627.40
11,927.94
13,304.89
27,228.10
(0.4)
31,686.88
(0.3)
2011
362.72
1,658.41
11,839.43
13,238.22
27,098.78
(0.5)
31,510.72
(0.6)
2012
401.43
1,690.94
11,948.37
13,012.52
27,053.26
(0.2)
31,406.83
(0.3)
2013
402.20
1,683.94
11,926.58
12,780.09
26,792.81
(1.0)
31,079.22
(1.0)
2014
405.15
1,596.03
12,116.38
12,803.71
26,921.27
0.5
31,265.86
0.6
Note 1: Enrollment numbers are estimated for the most recent fiscal year.
Note 2: ADM is weighted as follows in computing pupil units:
Early Childhood
and
Kindergarten –
Elementary Elementary
Handicapped Kindergarten
1–3
4–6
Secondary
Fiscal 2005
through 2007
Fiscal 2008
through 2014
Source:
Various
0.557
1.115
1.060
1.300
Various
0.612
1.115
1.060
1.300
Minnesota Department of Education
-151-
-152-