COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2013
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
Joyce Peterson  Accounting and Payroll Supervisor
Robin Sicoli  Accounting and Accounts Payable Supervisor
Beth Sullivan  Budget Analyst/MIS 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–x
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
Schedule of Changes in Capital Assets
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
108–109
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)
111
112–113
114–115
116–117
118–119
120
121
122–123
124–127
128
129
130–131
132
133
134–135
137
138–139
140–141
142–143
144–145
146–147
148–149
150–151
152
153
October 25, 2013
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, 2013. 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,
2013, 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 unqualified opinion that the District’s financial statements for the fiscal
year ended June 30, 2013, 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 Nonprofit 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.
-i-i-
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 2011–2012 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, individual fund, and capital assets 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 27,168 students (or average daily membership totaling 26,790.30) in 2012–2013
from a population of 153,051 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
2012–2013 school year, 72 percent of our students were white, 11 percent of the District’s student
population were black, students of Asian descent comprised 9 percent, Hispanic students totaled
7 percent, and 1 percent were American Indian.
In 2012–2013, 15.3 percent of our students qualified to receive special education services; this compared
to a 2012 Minnesota average of 14.9 percent.
-ii-
Five-Year Enrollment Projections
The District enrollment is projected to remain stable over the next five years, declining less than
0.2 percent per year.
5-Year Enrollment Projections
30,000
27,111
27,081
27,016
26,976
26,969
28,000
26,000
24,000
22,000
20,000
2013–2014
2014–2015
2015–2016
2016–2017
2017–2018
District Schools and Facilities
During the 2012–2013 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 28 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 some 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; however,
we remain optimistic about the future of Dakota County and the District.
At the end of 2012, Dakota County’s unemployment rate was 5.3 percent, the state’s unemployment rate
was 5.6 percent, and the national unemployment rate was 8.1 percent.
Dakota County residents are well-educated. Information from calendar year 2010 shows that 94 percent
of residents over the age of 25 had a high school diploma and 39 percent had a Bachelor’s or advanced
degree.
Annual average wages in Dakota County have risen from $33,456 in 2000 to $46,391 in 2011. The
median household income for Dakota County in 2011 was $69,508.
-iii-
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
6.7 percent in this period.
Dakota County is considered to have an economically healthy mix of industry types. Fifty-one percent of
the total workforce in Dakota County were 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.
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
-iv-
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, the percentage of the District’s students who scored proficient on
the state reading and math tests exceeded the state-wide averages for all eight grades tested in the spring
of 2012.
The MCAs are given annually to students in Grades 3–8 (reading and math), Grade 10 (reading),
Grade 11 (math), and Grades 5, 8, and high school (science). The MCAs are designed to measure district
and school progress on teaching and learning the Minnesota Academic Standards.
Student performance on the MCAs is measured by a scaled score that is placed into one of four
achievement levels. Students who meet or exceed the standards are considered to be proficient in the
subject area.
During the 2012–2013 school year, 75 percent of the District’s 10th grade students met or exceeded the
standards for the reading component of the MCAs compared to 62 percent state-wide; 68 percent of the
District’s 11th grade students met or exceeded the standard of their math test compared to 52 percent
state-wide; and 68 percent of all high school students met or exceeded the standards of the science test
compared to 53 percent state-wide.
American College Test (ACT)
In 2012–2013, 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; three of the District’s
students (two from Apple Valley High School and one from Rosemount High School) earned perfect
scores of 36 on the ACT.
The ACT average composite score for the District’s students in 2013 was 24.0 points. The District’s
average was 1.0 point higher than the state average of 23.0 points. ACT scores range from 1 to 36. For
the eighth consecutive year, Minnesota had the highest average score among states where more than half
of all graduates took the test state-wide. 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.
-v-
The District’s ACT average composite score is based on the results of 1,666 students who took the test,
which represents nearly 75 percent of the graduating class of 2013; approximately the same percentage
took the test state-wide.
Advanced Placement (AP)
In 2012–2013, 658 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 Advanced Placement course exams they
took as juniors and seniors.
College in the Schools Program
In 2012–2013, the District was informed that during the previous school year its students who
participated in the College in the Schools Program earned 5,212 credits valued at nearly $2.3 million.
National Merit Scholars
In 2012–2013, 15 of the District’s high school seniors were named National Merit Scholarship finalists
(top 1 percent of seniors nation-wide), another 36 students were named commended students (top
5 percent) and one student was named a semifinalist in the National Achievement Scholarship Program.
ACHIEVEMENTS AND AWARDS
National Achievement Awards in Writing
In 2012–2013, three of the District’s juniors received Certificates for Superior Writing in the National
Achievement Awards in Writing competition sponsored by the National Council of Teachers of English.
They were 3 of only 4 juniors in Minnesota and 155 in the nation selected to receive an award based on
writing samples they produced early in their junior year.
Magnet School of Distinction Award
In 2012–2013, 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.
Destination ImagiNation
In 2012–2013, teams from Diamond Path Elementary School of International Studies, Woodland
Elementary School, and Dakota Hills Middle School competed at the state tournament and earned a spot
at the Global Finals of Destination ImagiNation, a competition which teaches creative skills through
problem-solving, improvisation, teamwork, and independent thinking.
Better Energy Efficiency (BEE) Program
In 2012–2013, the District surpassed the $3.0 million mark in energy-cost savings during the first
five years of the District’s participation in an energy reduction program.
-vi-
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.
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.
-vii-
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, 2012. It is
the eleventh 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 year was 5 percent; less than a 1 percent increase per
year and significantly less than inflation.
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; this
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 each for the
2013–2014 and 2014–2015 school years remains below inflation.
The District’s preliminary financial forecast for the 2014–2015 and 2015–2016 school years show that the
District will need to make significant budget cuts in spite of the additional funding approved by the
2013 Legislature. This is a direct result of a decade of less-than-inflationary funding increases from the
state.
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.
The District is committed to continue to engage staff and community members in further budget
adjustment discussions and to consider other options for increasing revenues which will be needed as a
result of diminishing state funding for education.
-viii-
MAJOR INITIATIVES
Teaching and Learning
During the 2012–2013 school year, substantial planning and professional development occurred for three
major initiatives:

Comprehensive Literacy Plan
The District completed the first 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.

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 of
2013, a task force of 37 members began a visioning process regarding learning and technology in
the District. The task force was charged with identifying and reviewing relevant issues, engaging
in dialogue around essential questions, establishing a broad vision for learning and technology in
the District, and developing recommendations that will best serve our students. The group’s work
will form the foundation of a plan to guide the District in the future.
Online Registrations and Payment System
During the 2012–2013 school year, the District successful implemented an online registration and
payment system. Parents are able to go to a single website to complete required registration paperwork
for their students to participate in activities and pay the fee for those activities by credit or online check
option. Parents can also complete and submit required forms and other paperwork on the same website,
at the same time they make their payment.
The system makes it more convenient for parents to register and pay online; it also helps the District
achieve its goal of significantly reducing the amount of cash and check handling in schools.
-ix-
In 2012–2013, the online registration and payment system processed close to 39 percent of the total
General Fund fees, this is an increase of 17 percent over the 2011–2012 school year. The percentage
increase is more dramatic in the school lunch program; close to 47 percent of the 2012–2013 school
lunch payments were processed online, a 30 percent increase over the previous school year.
In 2013–2014, the District is planning to offer a credit card payment option for almost everything,
including admission to sporting events and plays.
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 my secretary, Desiree Fleming; our
accounting supervisors Joyce Peterson, Robin Sicoli, and Beth Sullivan; and all the finance department
staff for their work.
Sincerely,
Stella Y. Johnson
Coordinator of Finance
-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
-xi-
Director of
Teaching and Learning
INDEPENDENT SCHOOL DISTRICT NO. 196
School Board and Superintendent’s Cabinet
for the Year Ended June 30, 2013
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
Communications Specialist
Director of Teaching and Learning
-xii-
42
35E
2
35W
Southcross Dr.
Burnsville
35W
Portland Ave.
11
35E
Palo
(2012-2013)
25
12
16
Whitney Dr.
14
30
2
7
20 1
22
d.
13
42
d
od
D
35
.
17
40
Cliff Rd.
Eagan
Wescott Rd.
15
11
5
2131
33
10 23
da
na
Ca ve.
A
k
G
n
an
on
e.
Av
135th St.
Inver
Grove
Heights
3
42
160th St.
42
Empire Township
Rosemount
145th St.
3
9
8
55
3
Map also available at http://www.district196.org/maps/
3
149
Elrene
Rd.
Yankee Doodle Rd.
Lone Oak Rd.
ie
Northv w Park Rd.
Lexington Ave.
Diffley Rd.
18
160th St.
Rd
Lakeville
1
4
24
Apple Valley
32
35E
Deerwood Dr.
rews R
McAnd
34
Minn.
Zoo
3 132nd St.
140th St.
77
3
6
Johnny Cake Rd.
District Map
cago Av
Chi
e.
Thomas
Lake Rd.
Educating our students to reach their full potential
Garden View Dr.
m
Dodd Rd.
Rosemount-Apple Valley-Eagan Public Schools
Barnes Ave.
Blaine Ave.
INDEPENDENT SCHOOL DISTRICT 196
Hayes Rd.
ino
Dr
.
.
ve
Cedar A
Cedar Ave.
Pilot Knob Rd.
Rahn Rd.
Galaxie Ave.
-xiiiPilot Knob Rd.
oc
Foliage Ave.
Diamond Path
dd
Shannon Pkwy.
d.
dR
ra
Akron Ave.
B
Dod
52
55
se
ou
r th
Vermillion
Township
56
.
Bl
vd
55
18 Glacier Hills School of
Arts and Science
Co
u
55
Elementary Schools
Deerwood
Echo Park
Greenleaf
Highland
Northview
Oak Ridge
Parkview
Pinewood
Red Pine
Rosemount
Shannon Park
Southview
Thomas Lake
Westview
Woodland
Elementary Magnet
Schools
16 Cedar Park Science,
Tech., Engineering and
Math (STEM) School
17 Diamond Path School
of International Studies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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 boundary
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
30
31
32
33
34
20
21
22
23
24
25
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, 2012
The CAFR has been reviewed and met or exceeded
ASBO International’s Certificate of Excellence standards
Ron McCulley, CPPB, RSBO
President
-xiv-
John D. Musso, CAE, RSBA
Executive Director
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, 2013, and the related notes to the financial statements, which collectively
comprise the District’s basic financial statements as listed in the table of contents. The prior year partial
comparative information presented has been derived from the District’s financial statements for the year
ended June 30, 2012, and in our report dated October 22, 2012, we expressed unmodified opinions on the
respective financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information.
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.
(continued)
-1-1-
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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, 2013, 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.
EMPHASIS OF MATTER
The financial statements include prior year partial comparative information, which does not include all of
the information required in a presentation in conformity with accounting principles generally accepted in
the United States of America. Accordingly, such information should be read in conjunction with the
District’s financial statements for the year ended June 30, 2012, from which it was derived.
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.
(continued)
-2-
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.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated October 25,
2013 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 25, 2013
-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, 2013
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, 2013. 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, 2013, the District shows an increase in total net position from current year activities of
$12.14 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 2012–2013 fiscal year
are listed below:

The assets of the District exceeded its liabilities and deferred inflows of resources at the close of
the 2012–2013 fiscal year by $178.61 million. Of this amount, $29.23 million (unrestricted net
position) may be used to meet the District’s ongoing obligations.

The District’s total net position increased by $12.14 million from current year activities. The
District’s net investment in capital assets increased by $8.84 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 $0.02 million,
due to the District spending down its debt service reserve for bond principal and interest
payments and budget savings in its Capital Projects – Building Construction Fund. The
unrestricted portion of the District’s net position increased by $3.28 million. This increase is
mainly due to budget savings experienced in the District’s General Fund. District budget
administrators continue to monitor their budgets closely and adjust their programs and spending
accordingly.

As of June 30, 2013, the District’s governmental funds reported combined ending fund balances
of $89.35 million, a net increase of $10.95 million in comparison with the prior year.
Approximately 18.85 percent of this total amount, or $16.84 million, is unrestricted – unassigned
fund balance.

At the close of the 2012–2013 fiscal year, unrestricted – unassigned fund balance for the General
Fund was $16.84 million, or 5.77 percent, of total General Fund expenditures.

The District’s long-term liabilities decreased by $0.18 million, or 0.10 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 premiums) of $2.42 million; a decrease of
$1.19 million in capital lease obligations; and an increase of $3.43 million in net other
post-employment benefit (OPEB) obligations, severance, and vacation payable. During the
2012–2013 fiscal year, the District issued $12.1 million of Series 2013A Refunding Bonds, which
will be used to redeem the 2016 through 2025 maturities of the District’s Series 2005A Bonds in
advance of their stated maturities. Total proceeds ($12.91 million) from this crossover refunding
were deposited in an escrow account and will be used to pay for the refunded Series 2005A
Bonds in August 2015.
-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 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 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 positions. 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 non-financial 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 $178.61 million at June 30, 2013. This is an
increase of $12.14 million, or 7.29 percent, from the previous year total of $166.47 million. (See Table 1)
Table 1
Net Position – Governmental Activities
2013
Assets
Current and other assets
Capital assets
2012
Percent Change
2012 to 2013
$
244,170,611
218,008,449
$
256,349,148
224,321,762
(4.75%)
(2.81%)
Total assets
$
462,179,060
$
480,670,910
(3.85%)
Liabilities
Long-term liabilities
Other liabilities
$
186,036,207
50,792,982
$
186,219,452
79,995,029
(0.10%)
(36.50%)
$
236,829,189
$
266,214,481
(11.04%)
$
46,737,284
$
47,984,657
(2.60%)
$
140,892,970
8,493,979
29,225,638
$
132,049,464
8,471,142
25,951,166
6.70%
0.27%
12.62%
$
178,612,587
$
166,471,772
7.29%
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 (78.88 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 (4.76 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 (16.36 percent) may be used to meet the District’s ongoing obligations.
The $12.14 million increase in net position is a result of many factors. Some of the major ones are:

In 2012–2013, the District’s net investment in capital assets increased $8.84 million.
Approximately $6.00 million 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 2012–2013, restricted assets decreased $0.02 million. This decrease is chiefly due to two
factors: 1) the District spent down some of its Debt Service Fund reserve for bond principal and
interest payments, and 2) budget savings in the Capital Projects – Building Construction Fund.

Unrestricted assets increased $3.27 million, mainly due to additional revenues received by our
schools and expenditure budget savings experienced in the District’s General Fund.
-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
2013
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
$
20,015,182
47,069,459
41,520
Net position – ending
$
Percent Change
2012 to 2013
20,350,562
45,572,463
23,875
(1.65%)
3.28%
73.91%
75,339,486
191,800,239
6,128,479
340,394,365
75,917,363
192,639,683
1,404,490
335,908,436
(0.76%)
(0.44%)
336.35%
1.34%
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
11,137,222
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
2.66%
(1.09%)
(0.57%)
0.26%
1.78%
18.27%
1.20%
(8.90%)
10.80%
(3.86%)
4.20%
4.30%
(12.27%)
0.14%
12,140,815
8,108,496
(49.73%)
166,471,772
158,363,276
$ 178,612,587
$ 166,471,772
Increase in net position
Net position – beginning
2012
Changes in Net Position – The District’s total revenues were $340.39 million for the year ended June 30,
2013. This is an increase of $4.48 million, or 1.34 percent, from the 2011–2012 actual revenues of
$335.91 million.
For 2012–2013, property taxes and general grants and aids accounted for 78.48 percent of total revenue
for the year.
About 13.84 percent of the District’s revenue came from operating and capital grants. Fees and charges
for services accounted for 5.88 percent of the total revenue, while the remaining 1.80 percent came from
other general revenue, including investment income.
-11-
For 2012–2013, the total cost of all programs and services was $328.25 million. This is an increase of
$0.45 million, or 0.14 percent, from the 2011–2012 total of $327.80 million.
As in past years, the bulk of the District’s resources (75.34 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 3.48 percent of total costs for the year. Total
revenues surpassed expenses, increasing the District’s net position by $12.14 million.
-12-
The cost of all governmental activities for 2012–2013 was $328.25 million. Of this amount,
$67.12 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
2012–2013.
with grants
2012–2013.

About 6.10 percent, or $20.02 million, of costs were paid by the users of the District’s programs.

Finally, $6.13 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 $47.11 million, or 14.35 percent of the total costs for
In addition, federal, state, and local sources subsidized general district operations
and contributions of $191.80 million, or 58.43 percent, of the total costs for
Table 3
Net Cost of Governmental Activities
Net Cost of Services
2013
2012
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
$
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
-13-
$
Percent Change
2012 to 2013
11,136,024
7,816,189
134,823,496
3,034,057
25,983,730
13,649,709
20,062,437
25,805,099
539,813
67,578
2,258,875
9,957,859
6,718,174
2.66%
3.39%
(0.83%)
1.85%
(2.85%)
18.39%
0.81%
(8.82%)
10.80%
(81.30%)
22.57%
4.30%
(12.27%)
$ 261,853,040
(0.28%)
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, 2013, the District’s governmental funds reported a combined fund balance of $89.35 million, an
increase of $10.95 million, or 13.97 percent, from last year’s ending fund balance of $78.39 million. This
net increase is chiefly due to the following factors:

During 2012–2013, the District took advantage of the low interest rates and issued $12.10 million
of Series 2013A Refunding Bonds. Series 2013A Refunding Bonds will be used to redeem the
2016 through 2025 maturities of the District’s Series 2005A Bonds in advance of their stated
maturities. Total proceeds from this crossover refunding of $12.91 million were deposited in an
escrow account and will be used to retire the refunded Series 2005A Bonds on August 1, 2015.

In 2012–2013, actual revenues and other financing sources were $74,960 more than actual
expenditures in the Food Service Special Revenue Fund.
Table 4 shows the change in total fund balances of each of the District’s governmental funds:
Table 4
Governmental Fund Balances
as of June 30, 2013
2013
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)
2012
39,755,826
$
41,374,012
1,517,978
44,234,187
85,507,991
873,368
32,238,524
74,485,904
2,640,765
1,201,749
3,842,514
2,565,805
1,344,624
3,910,429
89,350,505
-14-
$
78,396,333
$
(1,618,186)
(3.91%)
644,610
11,995,663
11,022,087
73.81%
37.21%
14.80%
74,960
(142,875)
(67,915)
$
Percent
Change
2012 to 2013
10,954,172
2.92%
(10.63%)
(1.74%)
13.97%
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 2012, it appears that
enrollment for the District will remain fairly stable over the next five years, declining less than 1 percent
per 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 2012–2013 both decreased slightly from the previous
year. Preliminary enrollment data for the 2013–2014 fiscal year shows a small increase from 2012–2013.
Figure 5
Students (Average Daily Membership)
30,000
25,000
20,000
15,000
10,000
5,000
–
2009
2010
2011
Elementary
-15-
Secondary
2012
2013
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,
2013
2012
Revenues
Local sources
Property taxes
Interest earnings
Other
State sources
Federal sources
Total revenues
$
54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
$
55,774,016
46,015
12,148,055
215,189,580
13,288,581
296,446,247
Other financing sources
Capital leases
Sale of capital assets
Total other financing sources
–
402,372
402,372
5,478,812
180,821
5,659,633
Total General Fund revenues
and other financing sources
$ 297,890,210
$ 302,105,880
$
$
Percent
Increase
(Decrease)
(1,394,376)
49,036
532,477
6,964,749
(5,110,295)
1,041,591
(2.50%)
106.57%
4.38%
3.24%
(38.46%)
0.35%
(5,478,812)
221,551
(5,257,261)
(100.00%)
122.53%
(92.89%)
(4,215,670)
(1.40%)
During 2012–2013, the District’s total General Fund revenues and other financing sources decreased
$4.22 million, or 1.40 percent, from the previous year. The decrease was due to the following factors:

The $1.39 million decrease in property taxes was chiefly due to a $1.10 million decrease in
Alternative Facility Levy for the 2012–2013 school year. Alternative Facility Levy authority is
based on state approved facility improvement projects. In addition, delinquent tax collections in
2012–2013 were $0.25 million less than the previous school year.

State aids for 2012–2013 were $6.96 million higher than the previous year. This increase was
mainly due to: 1) a $50 per pupil unit increase in the basic general education aid;
2) $2.94 million of one-time compensatory education aid approved by the 2011 Legislature;
3) $1.69 million from a new Literacy Incentive Aid to support early learning and literacy
initiatives; and 4) an increase of $1.34 million in referendum equalization aid. The increase in
referendum equalization aid is mainly due to a decline in the District’s referendum market value.

For 2012–2013, federal sources decreased by $5.11 million. The main reason for the decrease is
the federal Education Jobs Fund. This one-time funding utilized by the District during
2011–2012 was not available for 2012–2013. In addition, the District did not spend all of its Title
program and federal funds for special education in 2012–2013. The District is allowed to
carryover the unspent entitlements to the 2013–2014 fiscal year.

In 2012–2013, the District received a $0.49 million Medical Loss Ratio (MLR) Rebate from
HealthPartners. HealthPartners was the District’s health insurance provider.

The decrease in other financing sources is chiefly due to the issuance of two capital leases in
2011–2012 to finance the purchase of an existing building that the District had been renting for its
Alternative Learning and Transition Plus programs, and for the purchase of facilities and grounds
equipment. The District did not issue any capital leases in 2012–2013.
-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,
2013
2012
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
$ 188,018,283
63,383,807
21,161,112
9,805,225
6,238,429
3,445,517
292,052,373
$ 185,022,662
59,894,686
20,524,513
10,363,531
8,202,894
4,407,448
288,415,734
7,456,023
7,813,886
$ 299,508,396
$ 296,229,620
$
$
Percent
Increase
(Decrease)
2,995,621
3,489,121
636,599
(558,306)
(1,964,465)
(961,931)
3,636,639
1.62%
5.83%
3.10%
(5.39%)
(23.95%)
(21.83%)
1.26%
(357,863)
(4.58%)
3,278,776
1.11%
Total General Fund expenditures and other financing uses increased $3.28 million, or 1.11 percent, from
the previous year.
Actual salaries for 2012–2013 were 1.62 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 $3.49 million, or 5.83 percent, from the previous school year. Health
insurance costs were higher mainly due to School Board-approved increases in the District’s health
insurance premium contribution for several employee groups.
Purchased services increased by $0.64 million, or 3.10 percent, from the previous year. This was mainly
due to increases in property and liability insurance premiums, field trip transportation chargebacks,
field trip registrations for students, and contracted services.
Supplies and materials decreased $0.56 million, or 5.39 percent, from the previous year, mainly in
instructional supplies for elementary and secondary regular instruction and special education. Schools are
allowed to carryover their unspent regular instructional allocations to the 2013–2014 fiscal year.
Spending for capital items decreased $1.96 million, or 23.95 percent, from the previous year. The
decrease is mainly due to two factors: 1) a freeze in capital spending in December 2012 to ensure that the
operation capital portion of the General Fund would not go into deficit on June 30, 2013, and 2) schools
not spending all of their capital expenditure allocations.
Other financing uses decreased $0.36 million, or 4.58 percent, from the prior year. This is due to two
factors: 1) a decrease of $1.06 million in the District’s Alternative Facility Levy (used to support the
District’s major maintenance projects) transferred to the Capital Projects – Building Construction Fund,
and 2) a $0.71 million transfer of MLR Rebate and Early Retiree Reinsurance Program rebate received
from HealthPartners to the District’s Self-Insured Health Benefits Internal Service Fund.
-17-
In summary, 2012–2013 General Fund expenditures and other financing uses exceeded revenues and
other financing sources by $1.62 million, decreasing total fund balance by the same amount at June 30,
2013. After deducting statutory restrictions and internal assignments, the unrestricted – unassigned fund
balance decreased from $29.85 million at June 30, 2012 to $16.84 million at June 30, 2013.
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
$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%
9.27%
5.77%
2011
2012
Fund Balance
2013
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 $15.37 million in the Operating Account of the General
Fund at June 30, 2013 represents 5.77 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 $15.37 million in the
operating account of the General Fund is exclusive of the $17.31 million that the District is required to
“assign” for budgeted deficit spending in the 2013–2014 school year. Based on prior years’ performance,
the District is confident that the actual deficit spending for the 2013–2014 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
2011
Unrestricted – unassigned
fund balance
$
Percent increase (decrease)
Expenditures
Percent increase (decrease)
Percent of fund balance to
expenditures
2012
24,001,427
$
28,668,684
(4.66%)
$
258,787,398
2013
$
19.45%
$
257,509,371
(1.06%)
(0.49%)
9.27%
11.13%
15,373,033
(46.38%)
$
266,285,025
3.41%
5.77%
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, 2012, and unspent funds carried over from fiscal year 2011–2012.
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 2012–2013:
Table 8
General Fund Budget
Percent Change
Preliminary
to Final
Preliminary
Budget
Final Budget
Revenue and other
financing sources
$ 294,818,043
$ 297,746,273
$
2,928,230
0.99%
Expenditures and other
financing uses
$ 301,506,450
$ 306,771,674
$
5,265,224
1.75%
Net gain (loss)
$
$
$
(2,336,994)
(34.94%)
(6,688,407)
(9,025,401)
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 $9.03 million (net loss), the actual results for
the year show a net loss of $1.62 million.

Actual revenues and other financing sources were about $0.14 million more than expected.
Actual state aids for special education were $1.78 million less than projections; this is chiefly due
to updating the aid calculations using the most current information provided by the Minnesota
Department of Education. A budget variance of $0.62 million in general education aid due to
higher loss of the District’s 11th and 12th grades students during the school year. Actual receipts
for admission, fees collected from students, additional funds raised by the schools, and gifts to the
schools were $1.74 million higher than expected. In 2012–2013, the District also received
$0.40 million from trading in nine special education buses.

Actual expenditures and other financing uses were $7.26 million, or 2.37 percent, lower than
budget. There are many factors, both positive and negative, that have contributed to the net
decrease. In 2012–2013, the District performed better than budget in the areas of administration,
district support services, elementary and secondary regular instruction, special education
instruction, and facilities and grounds. The budget savings from these areas totaled
$6.56 million; close to half of this savings is due to schools not spending all of their 2012–2013
allocations.
CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND
The Capital Projects – Building Construction Fund revenues and other financing sources exceeded
expenditures by $0.64 million for the year ended June 30, 2013, resulting in an increase of the same
amount in the June 30, 2013 fund balance. The increase is the result of three main factors: 1) the early
start of several state-approved projects for the 2012–2013 school year in the 2011–2012 school year,
2) the early start of 2013–2014 state-approved projects in 2012–2013, and 3) savings from several
projects through the quotation and sealed bid process.
-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 2012–2013, approximately 99.54 percent of the District’s debt
service revenues came from property taxes. The balance came from the state in the form of homestead
and agricultural market value property tax credits and interest income from short-term investments.
In 2012–2013, the District’s total Debt Service Fund revenues and other financing sources exceeded
expenditures by $12.00 million. The positive difference is mainly due to the previously discussed
issuance of refunding bond issues to refund an existing bond issue (Series 2005A Bonds).
The June 30, 2013 Debt Service Fund balance totaled $44.23 million. Of this amount, $40.09 million is
available for the recall of the Series 2004A and Series 2005A Bonds, $3.67 million is available for regular
debt service, and the remaining $0.47 million is reserved for OPEB debt service needs.
NONMAJOR FUNDS
Expenditures exceeded revenues and other financing sources in the nonmajor funds by $67,915.
Food Service Special Revenue Fund
The Food Service Special Revenue Fund revenues and other financing sources for 2012–2013 totaled
$10.93 million and expenditures were $10.86 million, resulting in an increase in the fund balance of
$0.07 million. The June 30, 2013 Food Service Special Revenue Fund balance is $2.64 million.
The 2012–2013 actual revenues were $0.29 million, or 2.69 percent, greater than the budgeted amount.
This increase is due to a combination of two factors, both positive and negative. During 2012–2013, sales
to students and adults were $0.03 million less than budget, while federal aids for the school lunch and
breakfast programs were $0.29 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.
The actual 2012–2013 Food Service Special Revenue Fund expenditures were $0.13 million, or
1.20 percent, lower than the budgeted amount. The savings is mainly due to a combination of three
factors. During 2012–2013, employee benefits such as FICA, PERA, and workers’ compensation and
claims were $0.11 million less than budget. Actual expenditures for supplies and materials, food, and
milk were $0.11 million more than budget.
Actual capital expenditures, including building
improvements, equipment, and technology equipment were $0.15 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 2012–2013, the total revenues and other financing sources for the Community Service Special Revenue
Fund were $9.58 million and the total expenditures were $9.72 million, resulting in a decrease to fund
balance of $0.14 million. The Community Service Special Revenue Fund balance as of June 30, 2013 is
$1.20 million. Of this amount, $0.54 million is restricted for community education programs,
$0.31 million is restricted for the Adult Basic Education Program, $0.35 million is restricted for the Early
Childhood Family Education Program, $6,998 is restricted for the School Readiness Program, and $2,000
is restricted for community services.
-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 2012–2013, 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, 2013 totaled
$13.50 million, and the net position of the fund was a deficit $4.06 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, 2013 was $14.74 million, and the net position of the fund was $29.53 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 in September 2011 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 2012–2013 totaled $0.33 million; claims paid or accrued totaled $0.28 million,
resulting in net position increasing $0.05 million to $0.11 million at year-end.
The School Board approved establishing a self-insured health benefits plan effective at the start of the
2012–2013 fiscal year. The Self-Insured Health Benefits Internal Service Fund was established to report
all activities related to this plan. This self-insured health benefits plan covers all district employees. The
total district contributions (including transfers) to the plan for 2012–2013 totaled $37.50 million; claims
paid or accrued totaled $32.97 million, resulting in an ending net position of $4.53 million at year-end.
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
At year-end, the District has net capital assets of $218.01 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 $13.12 million.
During 2012–2013, the District invested a total of $7.00 million in buildings, furniture and equipment,
and construction in progress. Almost all of the capital investment can be attributed to major maintenance
and building improvement projects approved by the state and funded by Alternative Facility Levy
revenue, and health and safety and operating capital revenues.
Table 9
Capital Assets
2013
Land
Land improvements
Buildings
Furniture and equipment
Construction in progress
Less accumulated depreciation
Total
$
8,870,712
11,616,641
349,198,949
46,198,088
425,007
(198,300,948)
$ 218,008,449
-22-
2012
$
8,870,712
11,327,871
346,193,002
44,232,364
271,931
(186,574,118)
$ 224,321,762
Percent Change
2012–2013
–
2.55%
0.87%
4.44%
56.29%
6.29%
(2.81%)
LONG-TERM LIABILITIES
At year-end, the District had $141.81 million in general obligation bonds, refunding bonds, and
certificates of participation outstanding. This is a decrease of $3.58 million from the previous year, as
shown in Table 10.

Outstanding bonds show a net decrease of $3.43 million, mainly due to the retirement of existing
debt and the issuance of one refunding bond issue (as described in previous sections). The
District continues to make required scheduled payments.

During 2012–2013, the District retired $1.19 million of existing capital lease principal.
Table 10
Outstanding Long-Term Liabilities
2013
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
$
2012
Percent Change
2012 to 2013
90,175,000
49,230,000
8,726,698
2,400,000
13,497,475
3,312,916
14,737,956
3,959,162
$ 101,765,000
41,070,000
9,909,921
2,555,000
12,702,201
3,127,680
12,296,161
2,793,489
(11.39%)
19.87%
(11.94%)
100.00%
6.26%
5.92%
19.86%
(41.73%)
$ 186,039,207
$ 186,219,452
(0.10%)
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 April 2013.
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 $12.72
billion for calendar year 2013 and the District’s debt limit
is $1.9 billion.
The District’s outstanding debt is significantly below this
limit. The District’s outstanding debt as of June 30, 2013
is $139.41 million. The amount that is applicable to the
debt limit calculation is $95.17 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; the state has begun to use its budget reserve
to “buy back” outstanding school aid payments shifts in 2012–2013. This “buy back” will continue until
all withheld payments are paid and returning school districts to a 90 percent in the current year and
10 percent in the subsequent year state aid payment schedule. The state will also use the remaining
budget reserve to reduce the school district property tax recognition shift.
In addition, the 2013 Legislature also provided the equivalent of 1.5 percent per pupil unit annual
increases to the basic general education formula allowance for 2013–2014 and 2014–2015 school years,
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; 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; less than 1 percent increase per
year and significantly less than inflation.
The District’s preliminary financial forecast for the 2014–2015 and 2015–2016 school years show that
without futher incrases to funding sources, the District will need to make substantial budget cuts in spite
of the additional state funding.
To avoid major staffing and program cuts, the School Board has taken action to place levy referendum
questions in the November 5, 2013 General Election. The additional funds from an approved levy
increase would be used to maintain quality programs, such as early childhood learning, STEM, and
college-in-the-schools programs, that the community expects for its students.
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 financial report 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, 2013
(With Partial Comparative Information as of June 30, 2012)
Governmental Activities
2013
2012
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest receivable
Due from other governmental units
Inventory
Prepaid items
$
80,283,751
$
62,541,666
41,466,496
981,964
417,577
35,558,869
917,935
186,166
42,300,382
1,177,308
349,209
79,852,680
790,974
248,868
Restricted assets – temporarily restricted
Cash and investments for other post-employment benefits
Cash and investments for construction
Cash and investments for bond refunding
Interest receivable for bond refunding
44,268,264
103
40,065,344
24,142
41,199,522
103
27,885,284
3,152
Capital assets
Not depreciated
Depreciated, net of accumulated depreciation
Total capital assets, net of accumulated depreciation
9,295,719
208,712,730
218,008,449
9,142,643
215,179,119
224,321,762
Total assets
Liabilities
Tax anticipation certificates payable
Salaries payable
Accounts and contracts payable
Accrued interest payable
Due to other governmental units
Unearned revenue
$
462,179,060
$
480,670,910
$
–
17,778,132
20,508,858
2,035,053
3,121,151
7,349,788
$
35,162,700
17,702,647
21,300,638
1,942,173
3,112,728
774,143
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-
$
47,195,336
138,840,871
186,036,207
19,532,958
166,686,494
186,219,452
236,829,189
266,214,481
46,737,284
47,984,657
140,892,970
132,049,464
1,546,791
3,048,044
3,899,144
29,225,638
178,612,587
1,195,907
3,478,996
3,796,239
25,951,166
166,471,772
462,179,060
$
480,670,910
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Activities
Year Ended June 30, 2013
(With Partial Comparative Information for the Year Ended June 30, 2012)
Net (Expense)
Revenue and
Changes in
Net Position
2012
Net (Expense)
Revenue and
Changes in
Net Position
Governmental
Activities
Governmental
Activities
–
–
$ (11,432,572)
(8,081,401)
$ (11,136,024)
(7,816,189)
2013
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
$ 11,433,970
8,309,187
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions
$
–
130,907
$
1,398
96,879
$
147,547,387
6,294,929
7,521,127
25,000
(133,706,331)
(134,823,496)
3,878,014
57,500,259
16,280,078
22,089,783
23,639,275
14,197
313,960
53,566
1,124,840
93,836
773,547
31,943,037
66,133
739,953
–
–
–
–
–
16,520
(3,090,270)
(25,243,262)
(16,160,379)
(20,224,990)
(23,528,919)
(3,034,057)
(25,983,730)
(13,649,709)
(20,062,437)
(25,805,099)
598,093
10,942,769
9,754,914
–
6,547,387
5,441,560
–
4,382,743
1,544,642
–
–
–
(598,093)
(12,639)
(2,768,712)
(539,813)
(67,578)
(2,258,875)
10,385,661
5,894,160
–
–
–
–
–
–
(10,385,661)
(5,894,160)
(9,957,859)
(6,718,174)
$ 328,253,550
$ 20,015,182
$47,069,459
41,520
(261,127,389)
(261,853,040)
47,579,360
1,658,474
6,637,900
19,463,752
191,800,239
2,841,805
3,286,674
273,268,204
48,125,441
1,591,757
7,703,130
18,497,035
192,639,683
2,280,965
(876,475)
269,961,536
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 (loss)
Total general revenues
Change in net position
Net position – beginning
Net position – ending
See notes to basic financial statements
-27-
$
12,140,815
8,108,496
166,471,772
158,363,276
$ 178,612,587
$ 166,471,772
INDEPENDENT SCHOOL DISTRICT NO. 196
Balance Sheet
Governmental Funds
as of June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
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
Tax anticipation certificates payable
Salaries payable
Accounts and contracts payable
Accrued interest payable
Due to other governmental units
Due to other funds
Unearned revenue
Total liabilities
$
37,499,149
–
Capital Projects –
Building
Construction Fund
$
30,017,777
696,135
362,079
35,020,271
14,171
670,321
184,642
2,664,812
103
Debt
Service Fund
$
–
–
–
–
–
–
–
12,263,239
40,065,344
10,504,304
263,530
28,891
100,993
–
–
–
$
104,464,545
$
2,664,915
$
63,226,301
$
–
17,202,260
16,343,567
–
3,120,918
–
188,788
36,855,533
$
–
–
1,146,937
–
–
–
–
1,146,937
$
–
–
–
–
–
14,171
–
14,171
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
696,135
27,157,051
27,853,186
–
–
–
263,530
18,714,413
18,977,943
Fund balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
854,963
1,714,690
20,341,273
16,844,900
39,755,826
–
1,517,978
–
–
1,517,978
–
44,234,187
–
–
44,234,187
Total liabilities deferred inflows of
resources and fund balances
$
104,464,545
See notes to basic financial statements
-28-
$
2,664,915
$
63,226,301
Total Governmental Funds
2013
2012
Nonmajor Funds
$
4,756,520
–
$
944,415
22,299
31,328
437,605
–
247,614
1,524
57,183,720
40,065,447
$
41,466,496
981,964
422,298
35,558,869
14,171
917,935
186,166
53,085,736
27,885,387
42,300,382
1,177,308
341,792
79,852,680
99,730
790,974
248,868
$
6,441,305
$
176,797,066
$
205,782,857
$
–
575,872
422,557
–
233
–
712,010
1,710,672
$
–
17,778,132
17,913,061
–
3,121,151
14,171
900,798
39,727,313
$
35,162,700
17,702,647
21,294,599
78,012
3,112,728
99,730
774,143
78,224,559
$
22,299
865,820
888,119
981,964
46,737,284
47,719,248
1,177,308
47,984,657
49,161,965
249,138
3,593,376
–
–
3,842,514
1,104,101
51,060,231
20,341,273
16,844,900
89,350,505
1,039,842
38,022,213
9,487,053
29,847,225
78,396,333
6,441,305
$
176,797,066
$
205,782,857
-29-
-30-
INDEPENDENT SCHOOL DISTRICT NO. 196
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
as of June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
Total fund balances – governmental funds
2013
2012
$ 89,350,505
$ 78,396,333
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
416,309,397
(198,300,948)
410,895,880
(186,574,118)
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 and capital notes payable
Certificates of participation payable
Capital leases payable
Accrued vacation payable
(Premium) discount on bonds
(139,405,000)
(2,400,000)
(8,723,698)
(3,312,916)
(3,959,162)
(142,835,000)
(2,555,000)
(9,909,921)
(3,127,680)
(2,793,489)
Accrued interest payable on long-term debt is included in net position, but is
excluded from fund balances until due and payable.
(2,035,053)
(1,864,161)
30,107,498
25,661,620
981,964
1,177,308
$ 178,612,587
$ 166,471,772
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.
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.
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, 2013
(With Partial Comparative Information for the Year Ended June 30, 2012)
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
54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
Capital Projects –
Building
Construction Fund
$
–
–
16,520
–
–
16,520
Debt
Service Fund
$
19,493,505
86,670
–
3,502
–
19,583,677
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
–
90,720
–
–
–
–
–
–
–
–
–
–
–
–
6,009,810
–
–
–
–
–
–
–
–
–
–
–
–
1,341,223
399,581
292,052,373
–
–
6,009,810
15,530,000
4,969,040
20,499,040
5,435,465
(5,993,290)
Other financing sources (uses)
Refunding bonds issued
Debt issuance premiums
Bond refunding payments
Capital lease
Sale of capital assets
Transfers in
Transfers (out)
Total other financing sources (uses)
–
–
–
–
402,372
–
(7,456,023)
(7,053,651)
–
–
–
–
–
6,637,900
–
6,637,900
12,100,000
811,026
–
–
–
–
–
12,911,026
Net change in fund balances
(1,618,186)
644,610
11,995,663
41,374,012
873,368
32,238,524
Fund balances
Beginning of year
$
End of year
See notes to basic financial statements
-32-
39,755,826
$
1,517,978
(915,363)
$
44,234,187
Total Governmental Funds
2013
2012
Nonmajor Funds
$
1,661,685
2,175
12,065,523
2,557,991
4,111,522
20,398,896
$
$
75,872,335
62,715
24,616,940
218,969,312
17,281,296
336,802,598
–
–
–
–
–
–
–
–
–
10,707,855
9,681,561
191,154
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
10,884,027
8,390,674
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
–
–
20,580,570
16,871,223
5,368,621
339,141,793
17,203,854
5,470,324
337,208,049
(181,674)
(1,654,862)
(405,451)
–
–
–
–
2,154
111,605
–
113,759
12,100,000
811,026
–
–
404,526
6,749,505
(7,456,023)
12,609,034
34,800,000
4,406,816
(11,185,000)
5,478,812
180,821
7,813,886
(7,813,886)
33,681,449
(67,915)
10,954,172
33,275,998
78,396,333
45,120,335
3,910,429
$
75,534,830
183,896
24,762,575
224,715,822
12,289,808
337,486,931
3,842,514
$
89,350,505
$
78,396,333
-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, 2013
(With Partial Comparative Information as of June 30, 2012)
Total net change in fund balances – governmental funds
2013
2012
$ 10,954,172
$ 33,275,998
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
6,999,335
(13,119,746)
9,675,392
(12,816,197)
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.
(192,902)
(612,218)
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.
(12,100,000)
(40,278,812)
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
Energy conservation loans
15,685,000
1,186,223
–
26,275,000
2,111,290
2,564
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.
(170,892)
(41,052)
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.
(1,165,673)
(5,613,614)
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
(185,236)
(86,576)
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.
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.
4,445,878
(195,344)
$ 12,140,815
Change in net position – governmental activities
See notes to basic financial statements
-35-
(3,828,307)
45,028
$ 8,108,496
-36-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
General Fund
Year Ended June 30, 2013
Budgeted Amounts
Original
Final
Revenue
Local sources
Property taxes
Investment earnings (charges)
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 of revenue over expenditures
Other financing sources (uses)
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Actual
Over (Under)
Final Budget
$ 54,824,657
–
9,065,855
222,555,252
8,367,279
294,813,043
$ 54,824,657
–
10,541,978
223,374,899
8,999,739
297,741,273
$ 54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
11,475,823
10,706,606
12,308,263
10,885,045
11,685,219
8,303,655
(623,044)
(2,581,390)
148,415,584
3,952,147
57,733,150
–
14,341,796
23,080,342
24,078,559
781,771
150,543,026
3,977,031
58,207,831
–
14,105,078
23,072,413
23,587,632
781,771
146,884,786
3,860,595
57,700,284
90,720
16,120,814
22,686,884
22,380,519
598,093
(3,658,240)
(116,436)
(507,547)
90,720
2,015,736
(385,529)
(1,207,113)
(183,678)
146,365
30,994
294,743,137
1,341,237
492,516
299,301,843
1,341,223
399,581
292,052,373
(14)
(92,935)
(7,249,470)
69,906
(1,560,570)
5,435,465
5,000
(6,763,313)
(6,758,313)
5,000
(7,469,831)
(7,464,831)
402,372
(7,456,023)
(7,053,651)
$ (6,688,407)
$ (9,025,401)
(1,618,186)
Fund balances
Beginning of year
41,374,012
$ 39,755,826
End of year
See notes to basic financial statements
-37-
$
(445,017)
95,051
2,138,554
(1,220,570)
(821,453)
(253,435)
6,996,035
397,372
13,808
411,180
$
7,407,215
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Net Position
Internal Service Funds
as of June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
2013
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
$
See notes to basic financial statements
-38-
23,100,031
2012
$
9,455,930
19,421
10,569
30,053,670
14,214,594
21,263,184
19,936,338
67,387,716
50,666,021
3,278,001
2,595,797
6,448,990
12,322,788
2,079,200
6,039
–
2,085,239
10,219,474
14,737,956
24,957,430
10,623,001
12,296,161
22,919,162
37,280,218
25,004,401
29,530,308
577,190
28,903,361
(3,241,741)
30,107,498
$
25,661,620
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Revenue, Expenses, and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
2013
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
40,860,673
6,682
40,867,355
2012
$
1,478,659
5,505,012
33,247,102
40,230,773
Operating income (loss)
Nonoperating revenue (expenses)
Investment earnings (loss)
Income (loss) before transfers
Transfers
Change in net position
Net position
Beginning of year
$
End of year
See notes to basic financial statements
-39-
4,262,682
21,000
4,283,682
1,365,252
5,592,639
214,908
7,172,799
636,582
(2,889,117)
3,102,778
(939,190)
3,739,360
(3,828,307)
706,518
–
4,445,878
(3,828,307)
25,661,620
29,489,927
30,107,498
$
25,661,620
-40-
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
2013
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
$
47,309,443
6,682
2012
$
(34,403,946)
12,912,179
Cash flows from noncapital financing activities
Transfers from other funds
(5,536,703)
(1,253,021)
706,518
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 (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
Due to other funds
Severance benefits payable
Net obligation for other post-employment benefits
Claims payable
Unearned revenue
Net cash flows from operating activities
-41-
–
(5,849,531)
11,571,275
3,094,146
8,815,890
(3,839,086)
2,490,746
1,135,553
(212,787)
22,434,587
(1,465,808)
30,719,114
32,184,922
$
53,153,701
$
30,719,114
$
636,582
$
(2,889,117)
(220)
–
795,274
2,441,795
2,589,758
6,448,990
$
See notes to basic financial statements
4,262,682
21,000
12,912,179
–
(1,314,916)
565,329
2,379,644
6,039
–
$
(1,253,021)
INDEPENDENT SCHOOL DISTRICT NO. 196
Statement of Fiduciary Net Position
Fiduciary Funds
as of June 30, 2013
Employee
Benefit
Trust Fund
Assets
Current assets
Cash and temporary investments
$
Scholarship
Private-Purpose
Trust Fund
334,943
Liabilities
Current liabilities
Accounts and contracts payable
$
–
Net position
Held in trust for employee benefits and other purposes
$
334,943
$
22,615
$
151,204
–
$
151,204
22,615
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2013
Employee
Benefit
Trust Fund
Additions
Contributions
From plan members
$
Deductions
Employee benefits
Scholarships
Total deductions
1,557,304
Scholarship
Private-Purpose
Trust Fund
$
1,781,094
–
1,781,094
Change in net position
Net position
Beginning of year
$
End of year
See notes to basic financial statements
-42-
–
–
1,000
1,000
(223,790)
(1,000)
558,733
23,615
334,943
$
Agency
Funds
22,615
INDEPENDENT SCHOOL DISTRICT NO. 196
Notes to Basic Financial Statements
Year Ended June 30, 2013
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, 2013, the District paid
TIES $1,190,689 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.
The District applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available. 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,
2013 exceeded budget in the Community Service Special Revenue Fund by $10,729, and the Debt
Service Fund – General Account by $754,502.
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 Capital Projects – Building Construction Fund, this represents proceeds from certificates of
participation held by trustee available for the renovation of an existing district building. 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. 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, 2013 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
$ 34,511,694
80,503
428,074
$
476
–
100,517
$
429,125
–
8,480
$ 34,941,295
80,503
537,071
Total due from other governmental units
$ 35,020,271
$
100,993
$
437,605
$ 35,558,869
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 $27,139,212 of the property tax levy collectible in
2013 as revenue to the District in fiscal year 2012–2013. The remaining portion of the taxes collectible in
2013 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, 2013, the Debt Service Fund had a payable of $14,171 due to the General Fund.
-48-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
During the year, the District transferred $6,637,900 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, $706,518 from the General Fund to the Internal Service Fund to allocate certain revenues to the
fund in which they will be spent, and $111,605 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 2013.
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,
2012
2013
Current
Year Claims
and Changes
in Estimates
Claims Payable
Beginning
of Year
$
$
–
6,039
$
$
214,908
278,842
Claims Payable
End of Year
Claim Payments
$
$
208,869
276,457
$
$
6,039
8,424
Changes in the balance for health insurance claim liabilites for the year (the District began
self-insuring for health benefits in the current year) were as follows:
Fiscal Year
Ended
June 30,
2013
Current
Year Claims
and Changes
in Estimates
Claims Payable
Beginning
of Year
$
–
$
32,968,260
-50-
Claims Payable
End of Year
Claim Payments
$
30,380,887
$
2,587,373
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 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 do not meet the definition of “restricted” or “net
investment in capital assets.”
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, 2013, the Severance Benefits Internal Service Fund reported a deficit net position of
$4,058,835. 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.”
W. Changes in Accounting Principles
During the year ended June 30, 2013, the District implemented GASB Statement No. 63, Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. GASB Statement No. 63
created two new financial statement elements, deferred outflows of resources (a consumption of net
position that is applicable to a future reporting period) and deferred inflows of resources (an acquisition
of net position that is applicable to a future reporting period), which are distinct from assets and liabilities.
It also defined net position as the residual of all other elements presented in a statement of net position
(assets + deferred outflows of resources – liabilities – deferred inflows of resources = net position).
GASB Statement No. 65 identified specific items previously reported as assets that will now be classified
as either deferred outflows of resources or outflows (expenditures/expenses), and items previously
reported as liabilities that will now be reported as either deferred inflows of resources or inflows
(revenues).
-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
17,718,650
147,399,161
8,413
$ 165,126,224
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
$
80,283,751
44,268,264
103
40,065,344
334,943
22,615
151,204
$ 165,126,224
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 was $18,989,967 and
$17,718,650, respectively. 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:
Credit Risk
Investment Type
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
AAA
AA
A
A
BBB
Commercial paper
Commercial paper
Interest Risk – Maturity Duration in Years
No
Maturity Date
Less Than 1
1 to 5
$
Total
–
–
$ 27,504,563
–
$ 12,560,781
2,095,602
$ 40,065,344
2,095,602
S&P
Moody’s
S&P
S&P
Moody’s
S&P
–
–
–
–
–
–
205,148
502,790
954,733
2,702,641
–
–
–
–
984,428
5,293,512
1,218,717
257,023
205,148
502,790
1,939,161
7,996,153
1,218,717
257,023
A-1
P-1
S&P
Moody's
–
–
27,942,732
3,995,349
–
–
27,942,732
3,995,349
Negotiable certificates of deposit
N/R
N/A
–
248,631
–
248,631
Equities
N/R
N/A
7,960,895
–
–
7,960,895
Equity mutual funds
N/R
N/A
4,347,891
–
–
4,347,891
Real asset mutual funds
N/R
N/A
4,017,414
–
–
4,017,414
Real estate investment trusts
N/R
N/A
125,379
–
–
125,379
Investment pools/mutual funds
Investment pools/mutual funds
AAA
N/R
S&P
N/A
30,878,840
13,602,092
–
–
–
–
30,878,840
13,602,092
Total investments
$ 147,399,161
N/A – Not Applicable
N/R – Not Rated
The amount in investment pools/mutual funds includes $10,864,703 invested in the Minnesota School
District Liquid Asset Fund and $20,014,137 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, 2013 is as follows:
Balance –
Beginning
of Year
Capital assets, not depreciated
Land
Construction in progress
Total capital assets, not
depreciated
$
8,870,712
271,931
Additions
$
–
3,892,793
Completed
Construction
Deletions
$
–
–
9,142,643
3,892,793
Capital assets, depreciated
Land improvements
Buildings
Furniture and equipment
Total capital assets, depreciated
11,327,871
346,193,002
44,232,364
401,753,237
95,708
294,924
2,715,910
3,106,542
–
(209,441)
(1,376,377)
(1,585,818)
Less accumulated depreciation for
Land improvements
Buildings
Furniture and equipment
Total accumulated depreciation
(8,814,698)
(149,972,543)
(27,786,877)
(186,574,118)
(318,756)
(9,276,454)
(3,524,536)
(13,119,746)
–
127,989
1,264,927
1,392,916
215,179,119
(10,013,204)
$ 224,321,762
$ (6,120,411)
Net capital assets, depreciated
Total capital assets, net
$
–
(192,902)
$
(3,739,717)
–
–
–
–
$
8,870,712
425,007
9,295,719
193,062
2,920,464
626,191
3,739,717
(192,902)
$
–
(3,739,717)
Balance –
End of Year
11,616,641
349,198,949
46,198,088
407,013,678
(9,133,454)
(159,121,008)
(30,046,486)
(198,300,948)
3,739,717
208,712,730
–
$ 218,008,449
Depreciation expense for the year ended June 30, 2013 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
Transportation
Food services
Sites and buildings
Sites and buildings – unallocated
Total depreciation expense
20,614
90,393
875,329
12,812
26,027
3,976
19,331
1,329,892
87,793
267,918
10,385,661
$ 13,119,746
-56-
NOTE 4 – SHORT-TERM BORROWING
The District engaged in the following short-term borrowing activity for cash flow purposes during the
year ended June 30, 2013:
Type of Borrowing
Tax anticipation certificates
Issue Date
Maturity
Date
04/26/2012
03/28/2013
Interest
Rate
Balance –
June 30, 2012
1.00%
$ 35,162,700
Additions
$
Balance –
June 30, 2013
Deletions
–
$ 35,162,700
$
–
Interest of $144,766 was charged to the General Fund in fiscal year 2013 related to these borrowings.
NOTE 5 – LONG-TERM LIABILITIES
A. General Obligation Bonds Payable
The District currently has the following general obligation bonds payable outstanding:
Issue
1994B School Building Bonds
1995B School Building Bonds
1996A School Building Bonds
2004A School Building Bonds
2005A School Building Bonds
2005B Refunding Bonds
2008A Refunding Bonds
2009A Taxable OPEB Bonds
2012A Refunding Bonds
2012C Refunding Bonds
2013A Refunding Bonds
Issue Date
Interest Rate
Face/Par Value
06/01/1994
04/01/1995
12/03/1996
08/01/2004
08/01/2005
09/06/2005
03/06/2008
02/12/2009
02/01/2012
06/07/2012
06/15/2013
5.35–6.10%
5.40–6.00%
5.25–5.75%
3.00–4.70%
3.50–5.00%
3.75–4.25%
3.00–4.00%
3.00–5.00%
2.00–3.00%
3.00–4.50%
2.00–3.00%
$
$
$
$
$
$
$
$
$
$
$
Total general obligation bonds payable
34,465,000
30,315,000
24,210,000
37,500,000
20,125,000
3,885,000
11,085,000
37,440,000
10,590,000
24,210,000
12,100,000
Final
Maturity
06/01/2014
04/01/2015
04/01/2015
02/01/2025
02/01/2025
02/01/2020
06/01/2014
02/01/2019
04/01/2015
02/01/2025
02/01/2025
Principal
Outstanding
$
475,000
4,215,000
9,400,000
26,850,000
13,490,000
2,660,000
1,495,000
35,745,000
8,765,000
24,210,000
12,100,000
$ 139,405,000
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 1994B, 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 1994B, 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.
-57-
NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
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 will be used to refund, in advance of
their stated maturities, the 2014 through 2025 maturities of the District’s 2004A General Obligation
School Building Bonds. The proceeds of the 2012C issue have been placed in an escrow account pending
the August 1, 2013 call date of the refunded issue. Until the call date, the District will continue to make
all debt service payments on the 2004A issue, and all debt service on the 2012C issue will be paid from
the escrow account. On August 1, 2013, the escrow account will be used to call the remaining principal
of the 2004A issue, and the District will assume all future principal and interest payments on the 2012C
issue. This advance “crossover refunding” will reduce 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.
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.
C. Capital Leases
The District has purchased various assets through capitalized lease-purchase agreements.
principal and interest on these leases will be paid from the General Fund.
Asset Leased
Asset Value
Capitalized
Interest
Rate
Annual
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
$ 1,509,740
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
1,801,529
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
130,000
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
266,176
ALC/Transitions Plus/Pathways Building –
final purchase option of $1 at end of lease term
$ 5,028,875
4.54 %
06/27/2012
06/01/2027
4,747,307
Maintenance vehicles and equipment – final
purchase option of $1 at end of lease term
$
2.13–2.55 %
10/01/2011
08/01/2015
268,946
449,937
$ 8,723,698
-58-
NOTE 5 – 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
8,943,374
$
842,916
165,620
$ 17,207,108
9,108,994
$
$
677,296
$
7,420,818
8,098,114
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,
2014
2015
2016
2017
2018
2019–2023
2024–2027
General Obligation Bonds
Principal
Interest
$
41,930,000
15,630,000
23,000,000
11,470,000
11,900,000
27,265,000
8,210,000
$ 139,405,000
$
Certificates of Participation
Principal
Interest
Capital Leases
Principal
Interest
4,475,507
3,781,519
3,142,525
2,441,794
1,968,944
3,975,434
449,587
$
155,000
160,000
165,000
170,000
170,000
940,000
640,000
$
71,419
68,319
65,119
61,406
57,156
204,394
45,068
$
1,192,492
1,244,391
1,293,311
655,372
681,207
2,095,979
1,560,946
$
307,359
258,256
206,817
159,320
133,485
379,299
99,636
$ 20,235,310
$
2,400,000
$
572,881
$
8,723,698
$
1,544,172
E. Changes in Long-Term Liabilities
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 8)
Balance –
Beginning
of Year
Additions
Retirements
Balance –
End of Year
Due Within
One Year
$ 142,835,000
2,555,000
4,762,713
(1,969,224)
148,183,489
$ 12,100,000
–
811,026
–
12,911,026
$ 15,530,000
155,000
716,368
(171,015)
16,230,353
$ 139,405,000
2,400,000
4,857,371
(1,798,209)
144,864,162
$ 41,930,000
155,000
–
–
42,085,000
9,909,921
12,702,201
3,127,680
12,296,161
–
1,478,662
2,321,389
5,505,012
1,186,223
683,388
2,136,153
3,063,217
8,723,698
13,497,475
3,312,916
14,737,956
1,192,492
3,278,001
639,843
–
$ 186,219,452
$ 22,216,089
$ 23,299,334
$ 185,136,207
$ 47,195,336
-59-
NOTE 6 – 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, 2013, a summary of the District’s governmental fund balance classifications are as follows:
Capital
Projects –
Building
Construction
Fund
General Fund
Nonspendable
Inventory
Prepaid items
Total nonspendable
$
Restricted
Health and safety
Operating capital
Area learning center
Capital projects levy
Community education programs
Early childhood family education programs
School readiness
Adult basic education
Building projects funded by certificates of
participation
Capital projects
Bond refundings
Debt service
Food service
Community service
Total restricted
670,321
184,642
854,963
$
–
–
–
Debt Service
Fund
$
–
–
–
Nonmajor
Funds
$
Total
247,614
1,524
249,138
$
917,935
186,166
1,104,101
401,963
1,139,246
167,899
5,582
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
535,880
306,142
6,998
350,729
401,963
1,139,246
167,899
5,582
535,880
306,142
6,998
350,729
–
–
–
–
–
–
1,714,690
103
1,517,875
–
–
–
–
1,517,978
–
–
40,089,486
4,144,701
–
–
44,234,187
–
–
–
–
2,391,627
2,000
3,593,376
103
1,517,875
40,089,486
4,144,701
2,391,627
2,000
51,060,231
Assigned
Subsequent year budget deficit
Building carryover
Total assigned
17,309,926
3,031,347
20,341,273
–
–
–
–
–
–
–
–
–
17,309,926
3,031,347
20,341,273
Unassigned
Safe schools restricted account deficit
Unassigned
Total unassigned
(576,195)
17,421,095
16,844,900
–
–
–
–
–
–
–
–
–
(576,195)
17,421,095
16,844,900
Total
$
39,755,826
$
1,517,978
$
44,234,187
$
3,842,514
$
89,350,505
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 7 – 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 Statutes 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 as described below:
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 7 – 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 4–5.4 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 6.5 percent and 10.0 percent, respectively, of their annual covered salary during fiscal year
2013 as employee contributions. The TRA employer contribution rates are 6.5 percent for Coordinated
Plan members and 10.5 percent for Basic Plan members during fiscal year 2013. Total covered payroll
salaries for all TRA members state-wide during the fiscal years June 30, 2012, 2011, and 2010 were
approximately $3.87 billion, $3.84 billion, and $3.79 billion, respectively.
The District’s contributions for the years ended June 30, 2013, 2012, and 2011 were $9,752,183,
$8,895,673, and $8,277,926, 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 will rise 0.5 percent
on July 1 of each year of the four-year period. Beginning July 1, 2014, TRA Coordinated Plan employee
and employer contribution rates will each be 7.5 percent.
-62-
NOTE 7 – 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 three
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. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
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 7 – 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 2013. In fiscal 2013, 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 PERF for the years ended June 30, 2013, 2012, and 2011 were
$3,211,780, $3,118,394, and $3,046,777, respectively, equal to the contractually required contributions
for each year as set by state statutes.
NOTE 8 – 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. 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.
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.
-64-
NOTE 8 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
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 $44,268,264 and net position of $29,530,308 as of June 30, 2013. 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
676,289
(849,519)
5,505,012
3,063,217
2,441,795
12,296,161
Net OPEB obligation – end of year
$ 14,737,956
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, 2011, 2012, and 2013 are as follows:
Fiscal
Year Ended
June 30, 2011
June 30, 2012
June 30, 2013
Annual
OPEB Cost
$
$
$
6,728,066
5,592,639
5,505,012
Employer
Contribution
$
$
$
4,648,901
3,212,995
3,063,217
Percentage of
Annual OPEB
Cost Contributed
69.1%
57.5%
55.6%
Net OPEB
Obligation
$
$
$
9,916,517
12,296,161
14,737,956
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 8 – 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 9 – 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 9 – 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 10 – OPERATING LEASES
The District is currently obligated on three 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 2013 were $1,161,137. Minimum future annual lease payments are as follows:
Year Ending
June 30,
Amount
2014
2015
$
1,608,180
65,689
$
1,673,869
NOTE 11 – 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, 2013 was
approximately $2,707,958.
-67-
-68-
REQUIRED SUPPLEMENTARY INFORMATION
-69-
INDEPENDENT SCHOOL DISTRICT NO. 196
Other Post-Employment Benefits Plan
Schedule of Funding Progress
June 30, 2013
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 1:
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 $44.3 million at June 30, 2013. 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, 2013
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
$
3,046,441
$
–
–
–
82,312
247,614
1,524
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
944,415
22,299
31,328
355,293
–
–
4,756,520
944,415
22,299
31,328
437,605
247,614
1,524
3,377,891
$
3,063,414
$
6,441,305
$
234,354
170,275
–
332,497
737,126
$
341,518
252,282
233
379,513
973,546
$
575,872
422,557
233
712,010
1,710,672
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
1,710,079
Total
–
–
–
22,299
865,820
888,119
22,299
865,820
888,119
247,614
1,524
2,391,627
2,640,765
–
–
1,201,749
1,201,749
247,614
1,524
3,593,376
3,842,514
3,377,891
$
3,063,414
$
6,441,305
INDEPENDENT SCHOOL DISTRICT NO. 196
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended June 30, 2013
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
Sale of capital assets
Transfers in
Total other financing sources
Net change in fund balances
Fund balances
Beginning of year
–
1,465
6,547,387
398,036
3,984,706
10,931,594
$
$
-73-
$
1,661,685
2,175
12,065,523
2,557,991
4,111,522
20,398,896
10,707,855
–
150,933
10,858,788
–
9,681,561
40,221
9,721,782
72,806
(254,480)
(181,674)
2,154
–
2,154
–
111,605
111,605
2,154
111,605
113,759
74,960
(142,875)
(67,915)
2,565,805
End of year
1,661,685
710
5,518,136
2,159,955
126,816
9,467,302
Total
2,640,765
10,707,855
9,681,561
191,154
20,580,570
1,344,624
$
1,201,749
3,910,429
$
3,842,514
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Comparative Balance Sheet
as of June 30, 2013 and 2012
2013
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Due from other funds
Inventory
Prepaid items
$
37,499,149
2012
$
30,017,777
696,135
362,079
35,020,271
14,171
670,321
184,642
Total assets
Liabilities
Tax anticipation certificates payable
Salaries payable
Accounts and contracts payable
Accrued interest payable
Due to other governmental units
Due to other funds
Unearned revenue
Total liabilities
34,314,798
30,492,790
858,515
299,839
77,937,302
45,784
606,825
237,002
$
104,464,545
$
144,792,855
$
–
17,202,260
16,343,567
–
3,120,918
–
188,788
36,855,533
$
35,162,700
17,296,543
18,925,971
78,012
3,092,868
53,946
363,525
74,973,565
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
696,135
27,157,051
27,853,186
858,515
27,586,763
28,445,278
Fund balances (deficits)
Nonspendable for inventory
Nonspendable for prepaid items
Restricted for health and safety
Restricted for operating capital
Restricted for area learning center
Restricted for capital projects levy
Assigned for subsequent year budget deficit
Assigned for extended time program carryover
Assigned for building carryover
Assigned for special education – Lifespan
Unassigned – safe schools restricted account deficit
Unassigned
Total fund balances
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
606,825
237,002
441,466
240,422
–
514,019
6,688,407
290,307
2,016,043
492,296
(453,222)
30,300,447
41,374,012
Total liabilities, deferred inflows of
resources, and fund balances
$
-74-
104,464,545
$
144,792,855
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended June 30, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
Budget
Actual
$ 54,824,657
–
10,541,978
223,374,899
8,999,739
297,741,273
$ 54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
8,278,462
3,242,144
423,101
199,205
51,257
114,094
12,308,263
Over (Under)
Budget
$
Actual
(445,017)
95,051
2,138,554
(1,220,570)
(821,453)
(253,435)
$ 55,774,016
46,015
12,148,055
215,189,580
13,288,581
296,446,247
8,221,664
3,013,979
220,158
62,202
66,554
100,662
11,685,219
(56,798)
(228,165)
(202,943)
(137,003)
15,297
(13,432)
(623,044)
7,759,255
2,774,055
178,640
46,076
17,955
108,046
10,884,027
4,776,509
3,331,905
1,505,432
208,373
280,662
782,164
10,885,045
4,307,178
1,808,256
1,306,470
72,696
217,702
591,353
8,303,655
(469,331)
(1,523,649)
(198,962)
(135,677)
(62,960)
(190,811)
(2,581,390)
4,103,158
1,817,529
1,178,254
106,460
425,624
759,649
8,390,674
104,891,282
31,166,405
5,756,023
6,585,864
1,827,629
315,823
102,451,188
31,770,832
5,879,522
5,234,412
1,188,738
360,094
(2,440,094)
604,427
123,499
(1,351,452)
(638,891)
44,271
103,304,677
30,455,450
5,850,890
5,915,908
746,121
277,804
150,543,026
146,884,786
(3,658,240)
146,550,850
(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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
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
2,595,187
854,683
267,932
117,590
110,937
30,702
3,977,031
2,579,636
800,169
237,343
111,311
100,721
31,415
3,860,595
(15,551)
(54,514)
(30,589)
(6,279)
(10,216)
713
(116,436)
2,518,908
802,811
248,364
120,777
110,120
19,197
3,820,177
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total special education instruction
40,848,009
14,413,640
1,828,367
725,262
324,762
67,791
58,207,831
41,120,684
14,603,912
1,103,944
523,683
310,964
37,097
57,700,284
272,675
190,272
(724,423)
(201,579)
(13,798)
(30,694)
(507,547)
40,321,379
13,593,529
1,025,037
540,298
296,701
44,290
55,821,234
–
–
–
79,258
11,462
90,720
Instructional support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total instructional support services
8,743,660
2,737,911
1,480,332
761,310
51,710
330,155
14,105,078
10,522,182
3,127,413
1,336,399
673,263
79,245
382,312
16,120,814
1,778,522
389,502
(143,933)
(88,047)
27,535
52,157
2,015,736
8,552,833
2,620,516
1,270,278
633,518
23,926
345,171
13,446,242
Pupil support services
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total pupil support services
10,984,295
5,075,971
3,293,630
2,119,981
1,568,956
29,580
23,072,413
10,999,932
4,707,678
2,964,047
2,016,923
1,980,868
17,436
22,686,884
15,637
(368,293)
(329,583)
(103,058)
411,912
(12,144)
(385,529)
10,769,365
4,316,852
2,970,729
1,787,090
164,620
27,702
20,036,358
Community service
Salaries
Employee benefits
Total community service
79,258
11,462
90,720
Actual
45,174
6,303
51,477
(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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
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
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Actual
2012
Over (Under)
Budget
Actual
7,893,417
3,700,211
7,464,164
1,311,543
3,086,981
131,316
23,587,632
7,736,561
3,540,106
7,515,136
1,110,735
2,293,637
184,344
22,380,519
(156,856)
(160,105)
50,972
(200,808)
(793,344)
53,028
(1,207,113)
7,647,913
3,507,641
7,262,508
1,213,404
6,417,827
23,902
26,073,195
781,771
598,093
(183,678)
539,813
1,341,237
492,516
1,833,753
1,341,223
399,581
1,740,804
(14)
(92,935)
(92,949)
2,261,290
540,397
2,801,687
299,301,843
292,052,373
(7,249,470)
288,415,734
(1,560,570)
5,435,465
–
5,000
(7,469,831)
(7,464,831)
–
402,372
(7,456,023)
(7,053,651)
–
397,372
13,808
411,180
$ (9,025,401)
(1,618,186)
$ 7,407,215
Fund balances
Beginning of year
End of year
-77-
6,996,035
8,030,513
5,478,812
180,821
(7,813,886)
(2,154,253)
5,876,260
41,374,012
35,497,752
$ 39,755,826
$ 41,374,012
-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, 2013
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
$ 47,334,100
95,051
11,448,029
203,411,179
8,178,286
270,466,645
Pupil
Transportation
$ 54,379,640
95,051
12,680,532
222,154,329
8,178,286
297,487,838
–
–
–
–
–
–
–
–
–
11,315
–
61,544
–
72,859
8,221,664
3,013,979
220,158
62,202
66,554
100,662
11,685,219
–
–
–
–
–
–
–
–
–
23,005
–
183,283
734,400
940,688
4,307,178
1,808,256
1,306,470
72,696
217,702
591,353
8,303,655
102,341,705
31,734,439
5,750,774
3,385,886
354,510
229,612
–
–
–
–
–
–
109,483
36,393
128,748
1,848,526
834,228
130,482
102,451,188
31,770,832
5,879,522
5,234,412
1,188,738
360,094
143,796,926
–
3,087,860
146,884,786
4,307,178
1,808,256
1,283,465
72,696
34,419
(143,047)
7,362,967
–
–
1,204,518
15,542,872
–
16,747,390
$
Total
7,045,540
–
27,985
3,200,278
–
10,273,803
8,221,664
3,013,979
208,843
62,202
5,010
100,662
11,612,360
$
Capital
Expenditure
(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, 2013
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
2,579,636
800,169
237,343
94,650
63,018
31,415
3,806,231
–
–
–
–
–
–
–
–
–
–
16,661
37,703
–
54,364
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
41,120,684
14,603,912
1,103,944
523,683
304,144
37,097
57,693,464
–
–
–
–
–
–
–
–
–
–
–
6,820
–
6,820
41,120,684
14,603,912
1,103,944
523,683
310,964
37,097
57,700,284
79,258
11,462
90,720
–
–
–
–
–
–
79,258
11,462
90,720
10,483,409
3,107,816
1,336,399
592,250
51,616
282,086
15,853,576
–
–
–
–
–
–
–
38,773
19,597
–
81,013
27,629
100,226
267,238
10,522,182
3,127,413
1,336,399
673,263
79,245
382,312
16,120,814
4,463,593
1,425,395
323,159
27,874
–
3,536
6,243,557
6,536,339
3,282,283
2,633,644
1,967,153
1,918,582
13,900
16,351,901
–
–
7,244
21,896
62,286
–
91,426
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
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, 2013
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
7,611,450
3,478,945
5,268,810
1,031,100
1,771,763
4
19,162,072
–
–
–
–
–
–
–
125,111
61,161
2,246,326
79,635
521,874
184,340
3,218,447
7,736,561
3,540,106
7,515,136
1,110,735
2,293,637
184,344
22,380,519
598,093
–
–
598,093
59,726
5,333
65,059
–
–
–
1,281,497
394,248
1,675,745
1,341,223
399,581
1,740,804
Total expenditures
266,285,025
16,351,901
9,415,447
292,052,373
Excess of revenue
over expenditures
4,181,620
395,489
858,356
5,435,465
Other financing sources (uses)
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
3,122
(7,456,023)
(7,452,901)
399,250
–
399,250
–
–
–
402,372
(7,456,023)
(7,053,651)
Net change in fund balances
(3,271,281)
794,739
858,356
(1,618,186)
1,631,763
716,979
41,374,012
1,575,335
$ 39,755,826
Fiscal and other fixed cost programs
Purchased services
Debt service
Principal
Interest
Total debt service
Fund balances
Beginning of year
End of year
39,025,270
$ 35,753,989
-81-
$
2,426,502
$
-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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
$
47,779,117
–
9,579,978
204,488,023
8,999,739
270,846,857
8,278,462
3,242,144
351,816
199,205
14,053
114,094
12,199,774
4,776,509
3,331,905
1,485,731
208,373
43,900
47,764
9,894,182
Actual
$
47,334,100
95,051
11,448,029
203,411,179
8,178,286
270,466,645
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
Over (Under)
Budget
$
(445,017)
95,051
1,868,051
(1,076,844)
(821,453)
(380,212)
Actual
$
48,695,278
46,015
10,851,798
196,979,840
13,288,581
269,861,512
(56,798)
(228,165)
(142,973)
(137,003)
(9,043)
(13,432)
(587,414)
7,759,255
2,774,055
178,640
46,076
3,804
106,886
10,868,716
(469,331)
(1,523,649)
(202,266)
(135,677)
(9,481)
(190,811)
(2,531,215)
3,211,270
1,455,880
743,571
106,460
37,713
25,249
5,580,143
104,736,724
31,140,221
5,643,352
3,666,762
582,124
163,195
102,341,705
31,734,439
5,750,774
3,385,886
354,510
229,612
(2,395,019)
594,218
107,422
(280,876)
(227,614)
66,417
103,172,520
30,414,757
5,836,914
3,279,424
551,321
190,222
145,932,378
143,796,926
(2,135,452)
143,445,158
(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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
2,595,187
854,683
267,932
99,223
62,618
30,702
3,910,345
2,579,636
800,169
237,343
94,650
63,018
31,415
3,806,231
(15,551)
(54,514)
(30,589)
(4,573)
400
713
(104,114)
2,518,908
802,811
248,364
120,777
61,228
19,197
3,771,285
Special education instruction
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total special education instruction
40,848,009
14,413,640
1,828,367
725,262
322,712
67,791
58,205,781
41,120,684
14,603,912
1,103,944
523,683
304,144
37,097
57,693,464
272,675
190,272
(724,423)
(201,579)
(18,568)
(30,694)
(512,317)
40,321,379
13,593,529
1,024,387
540,298
295,301
44,290
55,819,184
–
–
–
79,258
11,462
90,720
8,743,660
2,737,911
1,480,332
669,795
27,150
198,621
13,857,469
10,483,409
3,107,816
1,336,399
592,250
51,616
282,086
15,853,576
1,739,749
369,905
(143,933)
(77,545)
24,466
83,465
1,996,107
8,514,820
2,601,175
1,270,278
608,045
23,926
240,752
13,258,996
4,352,822
1,384,169
334,280
66,008
1,340
3,080
6,141,699
4,463,593
1,425,395
323,159
27,874
–
3,536
6,243,557
110,771
41,226
(11,121)
(38,134)
(1,340)
456
101,858
4,335,756
1,305,697
322,706
36,936
–
4,255
6,005,350
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
79,258
11,462
90,720
45,174
6,303
51,477
(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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
Net change in fund balances
Budget
Actual
7,770,746
3,640,213
5,353,585
1,269,343
2,255,537
401
20,289,825
7,611,450
3,478,945
5,268,810
1,031,100
1,771,763
4
19,162,072
(159,296)
(161,268)
(84,775)
(238,243)
(483,774)
(397)
(1,127,753)
7,525,401
3,447,205
4,850,979
1,150,635
785,309
8,402
17,767,931
781,771
598,093
(183,678)
539,813
59,725
98,267
157,992
59,726
5,333
65,059
1
(92,934)
(92,933)
176,815
224,503
401,318
271,371,216
266,285,025
(5,086,191)
257,509,371
4,705,979
12,352,141
(524,359)
Other financing sources (uses)
Sale of capital assets
Transfers (out)
Total other financing sources (uses)
$
Over (Under)
Budget
4,181,620
5,000
(7,469,831)
(7,464,831)
3,122
(7,456,023)
(7,452,901)
(7,989,190)
(3,271,281)
Fund balances
Beginning of year
Actual
(1,878)
13,808
11,930
$
180,821
(7,813,886)
(7,633,065)
4,717,909
4,719,076
39,025,270
$
End of year
-85-
35,753,989
34,306,194
$
39,025,270
-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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
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
962,000
15,683,508
16,645,508
$
6,631,473
3,691,802
2,956,350
1,933,400
1,517,000
26,500
16,756,525
Excess of revenue
over expenditures
Other financing sources
Sale of capital assets
Net change in fund balances
Actual
$
1,204,518
15,542,872
16,747,390
2012
Over (Under)
Budget
$
6,536,339
3,282,283
2,633,644
1,967,153
1,918,582
13,900
16,351,901
242,518
(140,636)
101,882
Actual
$
1,249,907
15,171,809
16,421,716
(95,134)
(409,519)
(322,706)
33,753
401,582
(12,600)
(404,624)
6,433,609
3,011,155
2,645,779
1,750,154
59,069
23,447
13,923,213
(111,017)
395,489
506,506
2,498,503
–
399,250
399,250
–
(111,017)
794,739
905,756
2,498,503
Fund balances (deficits)
Beginning of year
$
1,631,763
$
End of year
-87-
2,426,502
(866,740)
$
1,631,763
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
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
Salaries
Employee benefits
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
Purchased services
Capital expenditures
Total special education instruction
$
7,045,540
–
3,203,368
10,248,908
Actual
$
7,045,540
27,985
3,200,278
10,273,803
2012
Over (Under)
Budget
$
–
27,985
(3,090)
24,895
Actual
$
7,078,738
46,350
3,037,931
10,163,019
71,285
37,204
–
108,489
11,315
61,544
–
72,859
(59,970)
24,340
–
(35,630)
–
14,151
1,160
15,311
–
–
19,701
236,762
734,400
990,863
–
–
23,005
183,283
734,400
940,688
–
–
3,304
(53,479)
–
(50,175)
891,888
361,649
434,683
387,911
734,400
2,810,531
154,558
26,184
112,671
2,919,102
1,245,505
152,628
109,483
36,393
128,748
1,848,526
834,228
130,482
(45,075)
10,209
16,077
(1,070,576)
(411,277)
(22,146)
132,157
40,693
13,976
2,636,484
194,800
87,582
4,610,648
3,087,860
(1,522,788)
3,105,692
18,367
48,319
66,686
16,661
37,703
54,364
(1,706)
(10,616)
(12,322)
–
48,892
48,892
–
2,050
2,050
–
6,820
6,820
–
4,770
4,770
650
1,400
2,050
(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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
Excess (deficiency) of revenue
over expenditures
Actual
38,773
19,597
81,013
27,629
100,226
267,238
38,773
19,597
(10,502)
3,069
(31,308)
19,629
38,013
19,341
25,473
–
104,419
187,246
3,000
120,573
50,616
174,189
7,244
21,896
62,286
91,426
4,244
(98,677)
11,670
(82,763)
2,244
–
105,551
107,795
122,671
59,998
2,110,579
42,200
831,444
130,915
3,297,807
125,111
61,161
2,246,326
79,635
521,874
184,340
3,218,447
2,440
1,163
135,747
37,435
(309,570)
53,425
(79,360)
122,512
60,436
2,411,529
62,769
5,632,518
15,500
8,305,264
1,281,512
394,249
1,675,761
1,281,497
394,248
1,675,745
(15)
(1)
(16)
2,084,475
315,894
2,400,369
11,174,102
9,415,447
(1,758,655)
16,983,150
858,356
1,783,550
(6,820,131)
–
–
(925,194)
–
$
Actual
–
–
91,515
24,560
131,534
247,609
Other financing sources
Captial lease issued
Net change in fund balances
Over (Under)
Budget
(925,194)
858,356
Fund balances
Beginning of year
$
5,478,812
1,783,550
(1,341,319)
716,979
End of year
$
-89-
1,575,335
2,058,298
$
716,979
-90-
INDEPENDENT SCHOOL DISTRICT NO. 196
General Fund
Schedule of Special Education Revenue and Expenditures
Budget and Actual
for the Year Ended June 30, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
$
350,000
28,098,758
5,709,917
34,158,675
40,852,083
14,414,228
1,834,104
720,992
322,712
67,791
58,211,910
$ (24,053,235)
-91-
Actual
$
343,268
27,001,306
5,031,964
32,376,538
Over (Under)
Budget
$
40,271,942
14,481,773
1,099,322
518,973
298,462
37,097
56,707,569
$ (24,331,031)
(6,732)
(1,097,452)
(677,953)
(1,782,137)
(580,141)
67,545
(734,782)
(202,019)
(24,250)
(30,694)
(1,504,341)
$
(277,796)
Actual
$
335,848
25,317,786
4,964,074
30,617,708
39,507,222
13,481,010
1,021,081
536,662
295,301
44,289
54,885,565
$ (24,267,857)
INDEPENDENT SCHOOL DISTRICT NO. 196
Food Service Special Revenue Fund
Comparative Balance Sheet
as of June 30, 2013 and 2012
2013
Assets
Cash and temporary investments
Receivables
Due from other governmental units
Inventory
Prepaid items
$
3,046,441
2012
$
82,312
247,614
1,524
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
563,314
184,149
11,150
$
3,377,891
$
3,263,841
$
234,354
170,275
–
332,497
737,126
$
190,295
193,569
1,289
312,883
698,036
Fund balances
Nonspendable for inventory
Nonspendable for prepaid items
Restricted for food service
Total fund balances
247,614
1,524
2,391,627
2,640,765
Total liabilities and fund balances
$
-92-
2,505,228
3,377,891
184,149
11,150
2,370,506
2,565,805
$
3,263,841
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
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
7,050
6,524,155
422,462
3,691,121
10,644,788
3,948,085
1,207,487
425,285
5,097,604
12,500
300,000
10,990,961
Excess (deficiency) of revenue
over expenditures
$
$
1,465
6,547,387
398,036
3,984,706
10,931,594
$
3,952,881
1,098,092
436,611
5,206,884
13,387
150,933
10,858,788
(5,585)
23,232
(24,426)
293,585
286,806
4,796
(109,395)
11,326
109,280
887
(149,067)
(132,173)
(346,173)
72,806
418,979
–
2,154
2,154
(346,173)
74,960
Other financing sources
Sale of capital assets
Net change in fund balances
Actual
2012
Over (Under)
Budget
Fund balances
Beginning of year
End of year
-93-
$
421,133
Actual
$
780
7,026,043
429,568
3,858,338
11,314,729
3,948,356
1,105,260
293,526
5,772,244
11,372
190,884
11,321,642
(6,913)
–
(6,913)
2,565,805
2,572,718
$ 2,640,765
$ 2,565,805
INDEPENDENT SCHOOL DISTRICT NO. 196
Community Service Special Revenue Fund
Comparative Balance Sheet
as of June 30, 2013 and 2012
2013
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
$
1,710,079
2012
$
944,415
22,299
31,328
355,293
Total assets
Liabilities
Salaries payable
Accounts and contracts payable
Due to other governmental units
Unearned revenue
Total liabilities
3,063,414
$
2,824,551
$
341,518
252,282
233
379,513
973,546
$
215,809
273,243
18,571
97,735
605,358
Fund balances
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
$
-94-
919,055
25,510
37,107
909,508
$
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
933,371
22,299
865,820
888,119
25,510
849,059
874,569
535,880
306,142
6,998
350,729
2,000
1,201,749
594,221
312,956
83,660
351,697
2,090
1,344,624
3,063,414
$
2,824,551
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
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
$
4,705,345
1,477,003
3,053,182
397,043
4,980
73,500
9,711,053
Excess (deficiency) of revenue
over expenditures
Other financing sources
Transfers in
Net change in fund balances
1,633,289
–
4,958,559
2,211,870
126,816
8,930,534
Actual
$
1,661,685
710
5,518,136
2,159,955
126,816
9,467,302
Over (Under)
Budget
$
4,713,691
1,467,647
3,111,450
384,981
3,792
40,221
9,721,782
28,396
710
559,577
(51,915)
–
536,768
Actual
$
8,346
(9,356)
58,268
(12,062)
(1,188)
(33,279)
10,729
1,592,020
288
5,426,998
2,479,676
134,377
9,633,359
4,441,979
1,333,551
3,032,419
365,200
5,938
54,118
9,233,205
(780,519)
(254,480)
526,039
400,154
125,413
111,605
(13,808)
110,756
(655,106)
(142,875)
512,231
510,910
Fund balances
Beginning of year
$
1,344,624
$
End of year
-95-
1,201,749
833,714
$
1,344,624
INDEPENDENT SCHOOL DISTRICT NO. 196
Capital Projects – Building Construction Fund
Comparative Balance Sheet
as of June 30, 2013 and 2012
2013
Assets
Cash and temporary investments
Cash and investments held by trustee
Prepaid items
Total assets
Liabilities
Accounts and contracts payable
Due to other funds
Total liabilities
$
2,664,812
103
–
$
2,774,371
103
716
$
2,664,915
$
2,775,190
$
1,146,937
–
1,146,937
$
1,901,816
6
1,901,822
Fund balances
Nonspendable for prepaid items
Restricted for building projects funded by
certificates of participation
Restricted for alternative facilities program
Total fund balances
Total liabilities and fund balances
$
-96-
2012
–
716
103
1,517,875
1,517,978
103
872,549
873,368
2,664,915
$
2,775,190
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2012
2013
Budget
Revenue
Local sources
Investment earnings
Other
Total revenue
$
Expenditures
Capital outlay
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Total expenditures
Excess (deficiency) of revenue
over expenditures
Other financing sources
Transfers in
Net change in fund balances
$
Actual
–
–
–
$
–
16,520
16,520
Over (Under)
Budget
$
–
16,520
16,520
Actual
$
470
15,844
16,314
78,647
36,686
441,886
–
6,080,880
6,638,099
78,647
36,511
462,670
3,235
5,428,747
6,009,810
–
(175)
20,784
3,235
(652,133)
(628,289)
77,105
36,198
526,368
115,455
7,609,851
8,364,977
(6,638,099)
(5,993,290)
644,809
(8,348,663)
6,637,900
6,637,900
(199)
644,610
Fund balances
Beginning of year
–
$
7,703,130
644,809
(645,533)
873,368
$
End of year
-97-
1,517,978
1,518,901
$
873,368
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund
Balance Sheet by Account
as of June 30, 2013
(With Partial Comparative Information as of June 30, 2012)
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
$ 10,694,069
40,065,344
Other
Post-Employment
Benefits
$
9,089,323
242,901
28,891
85,842
–
2012
1,569,170
–
$ 12,263,239
40,065,344
$ 12,557,968
27,885,284
1,414,981
20,629
–
15,151
–
10,504,304
263,530
28,891
100,993
–
10,888,537
293,283
4,846
442,556
53,946
$ 63,226,301
$ 52,126,420
$
$
$ 60,206,370
$
3,019,931
$
$
1,365
12,806
Totals
2013
14,171
45,778
Deferred inflows of resources
Unavailable revenue – delinquent taxes
Property taxes levied for subsequent year
Total deferred inflows of resources
242,901
16,193,490
16,436,391
20,629
2,520,923
2,541,552
263,530
18,714,413
18,977,943
293,283
19,548,835
19,842,118
Fund balances
Restricted for bond refundings
Restricted for debt service
Total fund balances
40,089,486
3,667,687
43,757,173
–
477,014
477,014
40,089,486
4,144,701
44,234,187
27,888,436
4,350,088
32,238,524
3,019,931
$ 63,226,301
$ 52,126,420
Total liabilities, deferred inflows of
resources, and fund balances
$ 60,206,370
-98-
$
INDEPENDENT SCHOOL DISTRICT NO. 196
Debt Service Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Year Ended June 30, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
General
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
Excess (deficiency) of revenue
over expenditures
$ 16,489,752
84,781
2,962
16,577,495
Other
Post-Employment
Benefits
$
14,235,000
3,108,901
151,651
17,495,552
Totals
2013
2012
3,003,753
1,889
540
3,006,182
$ 19,493,505
86,670
3,502
19,583,677
$ 18,506,299
15,162
870,488
19,391,949
1,295,000
1,708,038
450
3,003,488
15,530,000
4,816,939
152,101
20,499,040
14,942,564
4,791,256
138,671
19,872,491
(918,057)
2,694
(915,363)
(480,542)
Other financing sources (uses)
Refunding bonds issued
Debt issuance premiums
Bond refunding payments
Total other financing sources (uses)
12,100,000
811,026
–
12,911,026
–
–
–
–
12,100,000
811,026
–
12,911,026
34,800,000
4,406,816
(11,185,000)
28,021,816
Net change in fund balances
11,992,969
2,694
11,995,663
27,541,274
31,764,204
474,320
32,238,524
4,697,250
477,014
$ 44,234,187
$ 32,238,524
Fund balances
Beginning of year
End of year
$ 43,757,173
-99-
$
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
Budget
Actual
$ 16,392,833
–
2,854
16,395,687
$ 16,489,752
84,781
2,962
16,577,495
14,235,000
2,494,050
12,000
16,741,050
14,235,000
3,108,901
151,651
17,495,552
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
Excess (deficiency) of revenue
over expenditures
$
$
Actual
96,919
84,781
108
181,808
$ 16,787,567
15,056
789,871
17,592,494
–
614,851
139,651
754,502
14,942,564
3,083,218
138,671
18,164,453
(345,363)
(918,057)
(572,694)
(571,959)
–
–
–
–
12,100,000
811,026
–
12,911,026
12,100,000
811,026
–
12,911,026
34,800,000
4,406,816
(11,185,000)
28,021,816
(345,363)
11,992,969
$ 12,338,332
Other financing sources (uses)
Refunding bonds issued
Debt issuance premiums
Bond refunding payment
Total other financing sources (uses)
Net change in fund balances
2012
Over (Under)
Budget
Fund balances
Beginning of year
End of year
-100-
27,449,857
31,764,204
4,314,347
$ 43,757,173
$ 31,764,204
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, 2013
(With Comparative Actual Amounts for the Year Ended June 30, 2012)
2013
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
2,987,351
–
520
2,987,871
$
1,295,000
1,708,038
1,000
3,004,038
$
3,003,753
1,889
540
3,006,182
2012
Over (Under)
Budget
$
1,295,000
1,708,038
450
3,003,488
(16,167)
2,694
Fund balances
Beginning of year
16,402
1,889
20
18,311
Actual
$
–
–
(550)
(550)
$
–
1,708,038
–
1,708,038
18,861
91,417
474,320
$
End of year
-101-
477,014
1,718,732
106
80,617
1,799,455
382,903
$
474,320
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Net Position
as of June 30, 2013
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
$ 9,419,439
Other
Post-Employment
Benefits
Self-Insured
Dental
Benefits
Self-Insured
Health
Benefits
Total
$
$
117,359
$ 13,563,233
$ 23,100,031
–
19,201
–
–
220
19,421
–
–
9,438,640
30,053,670
14,214,594
44,268,264
–
–
117,359
–
–
13,563,453
30,053,670
14,214,594
67,387,716
3,278,001
–
–
3,278,001
–
–
–
–
–
8,424
–
8,424
–
2,587,373
6,448,990
9,036,363
3,278,001
2,595,797
6,448,990
12,322,788
10,219,474
–
–
–
10,219,474
–
10,219,474
14,737,956
14,737,956
–
–
–
–
14,737,956
24,957,430
13,497,475
14,737,956
8,424
9,036,363
37,280,218
–
(4,058,835)
29,530,308
–
–
108,935
–
4,527,090
29,530,308
577,190
108,935
$ 4,527,090
$ 30,107,498
$ (4,058,835)
$
29,530,308
-102-
$
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Fund Net Position
Year Ended June 30, 2013
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
Income (loss) before transfers
Transfers in
Change in net position
Net Position
Beginning of year
End of year
$
683,385
–
683,385
Other
Post-Employment
Benefits
Self-Insured
Dental
Benefits
Self-Insured
Health
Benefits
Total
$
$
325,239
6,682
331,921
$ 36,788,832
–
36,788,832
$ 40,860,673
6,682
40,867,355
3,063,217
–
3,063,217
1,478,659
–
–
1,478,659
–
5,505,012
–
5,505,012
–
–
278,842
278,842
–
–
32,968,260
32,968,260
1,478,659
5,505,012
33,247,102
40,230,773
(795,274)
(2,441,795)
53,079
3,820,572
636,582
34,036
3,068,742
–
–
3,102,778
(761,238)
626,947
53,079
3,820,572
3,739,360
–
–
–
706,518
706,518
(761,238)
626,947
53,079
4,527,090
4,445,878
(3,297,597)
28,903,361
55,856
–
25,661,620
108,935
$ 4,527,090
$ 30,107,498
$ (4,058,835)
$
-103-
29,530,308
$
-104-
INDEPENDENT SCHOOL DISTRICT NO. 196
Internal Service Funds
Combining Statement of Cash Flows
Year Ended June 30, 2013
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
$
$
$ 43,237,602
–
$ 47,309,443
6,682
683,385
–
(683,385)
–
3,063,217
–
(3,063,217)
–
Cash flows from noncapital financing activities
Transfers from other funds
–
Cash flows from investing activities
Purchase of investments
Sale of investments
Interest on investments
Net cash flows from investing activities
–
–
25,404
25,404
(5,849,531)
11,571,275
3,068,742
8,790,486
Net change in cash and cash equivalents
25,404
9,394,035
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
325,239
6,682
(276,457)
55,464
–
(30,380,887)
12,856,715
(34,403,946)
12,912,179
–
706,518
706,518
–
–
–
–
–
–
–
–
8,790,486
55,464
13,563,233
22,434,587
21,263,184
61,895
–
30,719,114
(5,849,531)
11,571,275
3,094,146
8,815,890
$ 9,419,439
$
30,053,670
$
117,359
$ 13,563,233
$ 53,153,701
$
$
(2,441,795)
$
53,079
$ 3,820,572
$
$
(795,274)
–
795,274
–
–
–
–
–
–
–
2,441,795
–
–
–
2,385
–
–
2,587,373
6,448,990
2,441,795
2,589,758
6,448,990
55,464
$ 12,856,715
$ 12,912,179
–
-105-
$
–
$
(220)
–
636,582
(220)
795,274
INDEPENDENT SCHOOL DISTRICT NO. 196
Agency Funds
Combining Statement of Assets and Liabilities
as of June 30, 2013
Graduate
Credit
Program
LCTS
Grant
Total
Assets
Current assets
Cash and temporary investments
$
29,913
$
121,291
$
151,204
Liabilities
Current liabilities
Accounts and contracts payable
$
29,913
$
121,291
$
151,204
-106-
INDEPENDENT SCHOOL DISTRICT NO. 196
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year Ended June 30, 2013
Balance –
Beginning
of Year
Additions
Deletions
Balance –
End of Year
Graduate Credit Program
Assets
Cash and temporary investments
$
29,868
$
3,683
$
3,638
$
29,913
Liabilities
Accounts and contracts payable
$
29,868
$
3,683
$
3,638
$
29,913
LCTS Grant
Assets
Cash and temporary investments
$
133,035
$
73,038
$
84,782
$
121,291
$
1,901
129,674
1,460
$
28,276
126
50,000
$
30,177
8,509
51,460
$
–
121,291
–
$
133,035
$
78,402
$
90,146
$
121,291
$
162,903
$
76,721
$
88,420
$
151,204
$
1,901
159,542
1,460
$
28,276
3,809
50,000
$
30,177
12,147
51,460
$
–
151,204
–
$
162,903
$
82,085
$
93,784
$
151,204
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-
INDEPENDENT SCHOOL DISTRICT NO. 196
Schedule of Changes in Capital Assets
Year Ended June 30, 2013
Balance –
June 30, 2012
Capital assets
Land
Land improvements
Buildings
Furniture and equipment
Construction in progress
$
Total capital assets
Capital assets by source
General Fund and special revenue funds
General obligation bonds
Certificates of participation
Total capital assets by source
Capital assets by function and activity
Administration and instructional
Food service
Community service
Total capital assets by function and activity
Reconciliation of financial statement
capital expenditures to capital asset additions
Financial statement capital expenditures
General Fund – Operating Account
General Fund – Pupil Transportation Account
General Fund – Capital Expenditure Account
Food Service Special Revenue Fund
Community Service Special Revenue Fund
Capital Projects – Building Construction Fund
Total capital expenditures
Additions
8,870,712
11,327,871
346,193,002
44,232,364
271,931
$
–
95,708
294,924
2,715,910
3,892,793
$
–
–
(209,441)
(1,376,377)
–
$ 410,895,880
$
6,999,335
$
(1,585,818)
$
80,961,617
327,370,485
2,563,778
$
6,999,335
–
–
$
(1,376,377)
(209,441)
–
$ 410,895,880
$
6,999,335
$
(1,585,818)
$ 407,280,312
3,530,749
84,819
$
6,925,045
74,290
–
$
(1,559,235)
(21,000)
(5,583)
$ 410,895,880
$
6,999,335
$
(1,585,818)
$
2,584,480
1,918,582
1,735,367
150,933
40,221
6,009,810
12,439,393
Less non-inventoriable expenditures included in above funds
Total additions in capital assets
5,440,058
$
-108-
Retirements
6,999,335
Completed
Construction
Balance –
June 30, 2013
$
–
193,062
2,920,464
626,191
(3,739,717)
$
8,870,712
11,616,641
349,198,949
46,198,088
425,007
$
–
$ 416,309,397
$
–
–
–
$
$
–
$ 416,309,397
$
–
–
–
$ 412,646,122
3,584,039
79,236
$
–
$ 416,309,397
86,584,575
327,161,044
2,563,778
-109-
-110-
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
112–119
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
120–129
These schedules contain information to help the reader assess the District’s most significant local revenue
source, property taxes.
Debt Capacity
130–135
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
137–141
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
142–153
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.
-111-
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
2007
2004
2005
2006
$ 60,179,849
$ 69,433,592
$ 81,835,420
$ 95,458,965
7,128,586
4,488,084
3,596,835
19,431,727
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
$ 94,825,081
$ 95,804,171
$ 101,639,459
$ 119,373,992
-112-
2008
2009
2010
2011
2012
2013
$ 103,319,797
$ 111,989,021
$ 119,230,936
$ 125,050,825
$ 132,049,464
$ 140,892,970
7,405,149
6,135,754
3,818,417
27,241,919
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
$ 147,921,036
$ 153,322,830
$ 148,617,282
$ 158,363,276
$ 166,471,772
$ 178,612,587
-113-
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
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
2004
2005
2006
Fiscal Year
2007
$ 9,023,422
9,090,491
117,529,564
3,317,329
36,873,401
11,339,355
16,423,852
19,794,294
651,645
9,247,290
6,354,611
7,358,717
9,560,956
256,564,927
$ 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
111,626
4,573,155
7,846
574,667
35,193
60,113
28,144
–
6,895,899
2,353,112
30,454,788
114,198
45,208,741
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
(211,356,186)
(219,789,001)
(226,754,886)
(240,780,912)
35,724,669
1,348,139
5,127,985
16,031,296
157,332,041
105,923
2,064,033
217,734,086
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
$ 5,835,288
$ 18,470,047
$ 6,377,900
-114-
$
979,090
2008
2009
2010
2011
2012
2013
$ 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
$ 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
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
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
(250,465,581)
(260,907,694)
(266,024,209)
(259,247,178)
(261,853,040)
(261,127,389)
46,474,687
1,641,337
6,728,396
20,077,143
186,584,417
1,732,845
4,335,798
267,574,623
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
$ 17,109,042
$ 5,401,794
$ (4,705,548)
$ 9,745,994
-115-
$ 8,108,496
$ 12,140,815
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
2007
2004
2005
2006
$ 9,173,445
38,611,262
–
–
–
–
$ 8,792,607
29,195,535
–
–
–
–
$ 8,325,259
21,909,176
–
–
–
–
$ 6,541,509
26,868,617
–
–
–
–
$ 47,784,707
$ 37,988,142
$ 30,234,435
$ 33,410,126
$ 17,444,442
$ 44,163,808
$ 24,097,996
$ 16,141,199
1,948,741
(1,626,265)
4,388,850
–
–
1,943,576
(1,340,420)
3,592,026
–
–
1,286,659
(418,812)
4,056,330
–
–
1,439,066
–
5,682,445
–
–
–
–
–
–
$ 22,155,768
$ 48,358,990
$ 29,022,173
$ 23,262,710
The District implemented GASB Statement No. 54 in fiscal 2011, which established new fund balance
classifications.
-116-
2008
2009
2010
2011
$ 6,554,348
34,285,964
–
–
–
–
$ 3,620,075
36,048,482
–
–
–
–
$ 3,206,123
31,828,883
–
–
–
–
$
$ 40,840,312
$ 39,668,557
$ 35,035,006
$ 35,497,752
$ 41,374,012
$ 39,755,826
$ 11,476,258
$ 5,870,499
$ 3,085,685
$
$
$
1,927,249
–
7,350,087
–
–
2,253,820
–
7,705,342
–
–
–
–
–
$ 20,753,594
$ 15,829,661
$ 9,541,738
2,562,040
(1,396,911)
5,290,924
–
–
2012
–
–
773,859
2,218,810
8,962,579
23,542,504
–
–
–
–
319,961
9,393,920
(91,298)
$ 9,622,583
-117-
$
2013
–
–
843,827
1,195,907
9,487,053
29,847,225
–
$
–
–
854,963
1,714,690
20,341,273
16,844,900
–
–
–
–
196,015
36,826,306
–
–
–
249,138
49,345,541
–
–
$ 37,022,321
$ 49,594,679
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
2005
2006
$ 59,083,626
2,064,033
17,138,848
176,093,759
8,646,091
263,026,357
$ 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
9,735,101
8,985,685
9,764,833
7,328,083
9,930,846
6,986,387
9,647,124
7,570,746
117,910,661
2,947,151
37,931,352
10,371,610
15,410,207
18,145,873
651,645
8,697,590
5,956,082
6,838,507
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
15,468,091
5,345,614
264,395,169
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
(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)
7.5%
8.0%
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
(1,368,812)
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
2007
2004
–
–
–
–
–
–
–
82,500
17,800
100,300
$
(1,268,512)
8.1%
-118-
$
$
74,065,528
4,525,997
20,512,946
202,416,935
10,263,367
311,784,773
(2,583,772)
8.1%
2008
$
74,697,557
3,961,904
21,182,866
216,030,229
11,896,836
327,769,392
2009
$
73,939,516
1,602,779
22,093,951
217,577,040
12,076,767
327,290,053
2010
$
74,528,277
303,790
22,855,768
196,502,525
30,566,131
324,756,491
2011
$ 103,540,368
108,110
23,736,052
190,544,694
13,612,715
331,541,939
2012
$
2013
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
.
10,293,805
8,012,337
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
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
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
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
(39,948,358)
(11,571,503)
(2,123,100)
(405,451)
(1,654,862)
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
(6,095,688)
$ (10,921,474)
17,269,095
4,625,339
327,124,231
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%
$
6.1%
7.0%
$
543,591
6.9%
-119-
$ 33,275,998
$ 10,954,172
6.9%
6.7%
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
2004
$
35,724,669
Community
Service
$
Property Tax
Capital Projects –
Facility
Improvement
1,348,139
$
5,127,985
Debt
Service
$
16,031,296
Total
$
58,232,089
2005
21,910,160
1,590,944
7,672,625
15,813,739
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
-120-
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
2004
Note:
$
35,582,114
Property Tax
Capital Projects –
Facility
Improvement
Community
Service
$
2,117,975
$
5,127,985
Debt
Service
$
16,055,006
Total
$
58,883,080
2005
21,895,000
1,589,968
7,672,625
15,795,536
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
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.
-121-
INDEPENDENT SCHOOL DISTRICT NO. 196
Tax Capacity and Estimated Market Value of Property
Last Ten Fiscal Years
Tax Collection
Calendar Year
2004
Real and
Personal Property
Fiscal Disparities
Contribution
$
$
125,394,699
(9,898,525)
Tax Increment
$
(2,612,232)
Tax Capacity (1)
Tax Rate Determining
Value Subtotal
Percent
Increase
Amount
(Decrease)
$
112,883,942
12.0
2005
141,164,544
(10,765,722)
(3,048,762)
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)
%
(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
-122-
Fiscal Disparities
Distribution
$
12,185,113
Total Tax Capacity
$
Referendum Market Value
Percent
Increase
Amount
125,069,055
$ 10,980,308,400
13.3
12,716,437
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)
-123-
%
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
Debt
Service Special
Revenue Fund
Service Fund
Total
Tax capacity rate
Market value rate
2004
2004
11.377 %
0.140
1.293 %
–
15.383 %
–
26.074 %
0.140
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
(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
-124-
Overlapping Rates, Municipalities, and Townships
Apple Valley
Burnsville
Coates
Eagan
Farmington
Inver Grove
Heights
39.610 %
0.014
38.928 %
–
23.476 %
–
28.702 %
0.019
– %
–
39.904 %
–
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
–
(continued)
-125-
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
2004
2004
30.050 %
0.007
52.368 %
–
30.439 %
–
16.449 %
–
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
–
-126-
Total Direct and Overlapping Rates
Dakota County
Miscellaneous
Other (2)
30.300 %
0.008
4.925 %
–
27.754
0.007
5.729
–
26.318
0.006
Apple Valley
Resident
Eagan Resident
101.112 %
–
Rosemount
Resident
90.001 %
–
113.870 %
–
96.487
–
87.611
–
105.775
–
5.344
–
94.818
–
85.192
–
102.883
–
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
-127-
INDEPENDENT SCHOOL DISTRICT NO. 196
Principal Property Taxpayers
Current Year and Nine Years Ago
Taxpayer
Burnsville, Minnesota, LLC
West Publishing Company
Xcel Energy
Flint Hills Resources, LP
Dakota Electric Association
Promenade Village Townhomes, LLC
Eagan Promenade, LLC
Individual
Principal Life Insurance Company
Aimco Woods of Burnsville, LLC
DDRA Community Centers Five, LP
Multipoint
JPT Industries, Inc.
Target Corporation
Total
Levy Year Collectible December 31,
2013
2004
Percentage
of Total
Taxable
Taxable
Taxable
Assessed
Assessed Value Rank
Assessed Value Rank
Value
$ 104,000,000
73,474,900
57,932,400
54,072,800
49,149,800
34,939,100
33,075,200
32,971,700
26,165,100
28,760,500
–
–
–
–
1
2
3
4
5
6
7
8
9
10
–
–
–
–
$ 494,541,500
Source: Dakota County Department of Property Tax and Public Records
-128-
0.8 %
0.6
0.5
0.4
0.4
0.3
0.3
0.3
0.2
0.2
–
–
–
–
$ 91,500,000
73,878,300
40,171,400
–
51,258,800
–
–
28,000,000
22,345,600
–
25,000,000
24,000,000
19,942,200
18,456,500
3.9 %
$ 394,552,800
1
2
4
–
3
–
–
5
8
–
6
7
9
10
Percentage
of Total
Taxable
Assessed
Value
0.8 %
0.7
0.4
–
0.5
–
–
0.3
0.2
–
0.2
0.2
0.2
0.2
3.6 %
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
2004
$ 50,038,314
$ 49,950,999
2005
51,988,792
51,599,777
2006
75,857,551
2007
$ 50,031,782
99.25
381,385
51,981,162
99.99
74,993,323
98.86
839,911
75,833,234
99.97
75,932,446
75,260,598
99.12
637,741
75,898,339
99.96
2008
75,021,977
74,153,963
98.84
775,937
74,929,900
99.88
2009
75,161,647
74,066,346
98.54
994,932
75,061,278
99.87
2010
77,716,489
76,858,532
98.90
697,745
77,556,277
99.79
2011
76,514,703
75,577,446
98.78
739,688
76,317,134
99.74
2012
75,939,060
75,216,046
99.05
404,212
75,620,258
99.58
73,876,495
N/A
N/A
N/A
N/A
N/A
(1)
$
Total Collections to Date
Percentage
of Levy
Amount
80,783
2013
99.83 %
Collections in
Subsequent
Years
99.99 %
N/A – Not Applicable
(1)
Only a portion of the calendar year 2013 taxes are collected by June 30, 2013. A total of $32,410,000 of 2013
taxes were collected by June 30, 2013.
Source: Dakota County Department of Property Tax and Public Records
-129-
INDEPENDENT SCHOOL DISTRICT NO. 196
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
2004
$ 119,315,000
2005
144,130,000
40,970,000
1,155,000
17,954
11,127,120
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
Refunding Bonds
$
46,820,000
Capital Notes
$
1,395,000
State
Energy Loans
$
124,043
Capital Leases
$
12,008,336
N/A – Not Available
(1)
See the Schedule of Demographic and Economic Statistics on page 137 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.
-130-
Certificates
of Participation
$
Total
–
$ 179,662,379
–
Percentage
of Personal
Income (1)
Per Capita (1)
0.01 %
1,266
197,400,074
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
N/A
1,015
2,400,000
150,531,698
N/A
984
-131-
INDEPENDENT SCHOOL DISTRICT NO. 196
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
and
Capital Notes
2004
$ 163,255,000
2005
Less Amounts
Available in Debt
Service Fund
$
Total
Percentage of
Estimated Actual
Market Value
of Property (1)
Per Capita (2)
1.33 %
1,030
19,949,662
$ 143,305,338
186,255,000
19,073,025
167,181,975
1.34
1,149
2006
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
(1)
See the Schedule of Tax Capacity and Estimated Market Value of Property on pages 122–123 for information on the
market value of the District’s property.
(2)
See the Schedule of Demographic and Economic Statistics on page 137 for the District’s population data.
Note:
Details regarding the District’s outstanding debt can be found in the notes to basic financial statements.
-132-
INDEPENDENT SCHOOL DISTRICT NO. 196
Direct and Overlapping Debt
as of June 30, 2013
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
Tax Collection
Calendar Year
2011–2012
Taxable Net
Tax Capacity
$
123,919,762
General Obligation
Bonded Debt (1)
$
139,405,000
Debt Applicable to
Tax Capacity in ISD No. 196
Amount
Percent
100.00 %
$
139,405,000
339,623,261
46,400,000
36.49
16,930,154
38,084,451
49,766,049
64,875,992
12,819,480
27,027,925
48,495,072
18,878,373
2,591,048
30,805,000
40,570,000
16,295,000
31,461,859
32,561,428
65,935,000
13,850,000
1,090,000
99.01
26.29
65.56
0.04
23.73
13.62
92.11
19.34
30,499,014
10,664,636
10,682,644
11,547
7,727,218
8,982,523
12,757,180
210,752
2,596,592,710
189,450,000
4.77
9,041,312
107,506,977
$
Total direct and overlapping debt outstanding
246,911,977
(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
-133-
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
2007
2004
2005
2006
$ 1,866,374,340
$ 2,093,669,259
$ 2,275,407,986
$ 2,352,824,336
147,580,338
167,181,975
171,405,883
152,240,600
$ 1,718,794,002
$ 1,926,487,284
$ 2,104,002,103
$ 2,200,583,736
7.91%
7.99%
7.53%
6.47%
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
-134-
2008
2009
2010
2011
2012
2013
$ 2,339,019,608
$ 2,196,363,555
$ 2,215,419,945
$ 2,072,617,605
$ 2,006,942,428
$ 1,907,640,566
134,252,908
156,517,363
143,744,858
129,462,750
110,596,476
95,170,813
$ 2,204,766,700
$ 2,039,846,192
$ 2,071,675,087
$ 1,943,154,855
$ 1,896,345,952
$ 1,812,469,753
5.74%
7.13%
6.49%
6.25%
5.51%
4.99%
Legal Debt Margin Calculation for Fiscal Year 2013
Estimated market value – 2013
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
-135-
$12,717,603,775
1,907,640,566
139,405,000
(44,234,187)
95,170,813
$ 1,812,469,753
-136-
INDEPENDENT SCHOOL DISTRICT NO. 196
Demographic and Economic Statistics
Last Ten Fiscal Years
Dakota County
Fiscal
Year
ISD No. 196
Population Population
(1)
(2)
Personal
Income
(Thousands)
Per Capita
Personal Median
Income (3) Age (4)
Education
Level in Years
School
of Formal
Enrollment Unemployment
Schooling (5)
Rate (7)
(6)
2004
141,945
378,343
$ 15,286,872
$ 40,548
35.4 (b)
95 %
28,572
4.5
2005
145,439
383,592
15,915,188
41,706
35.2 (a)
95
28,382
3.8
2006
146,683
388,001
16,627,273
43,095
35.7 (b)
94
28,269
3.7
2007
147,108
390,478
17,541,174
45,045
34.6 (b)
95
28,040
4.3
2008
147,786
392,755
18,242,899
46,357
36.0 (b)
95
27,873
4.9
2009
150,298
390,521
17,594,416
44,374
34.6 (b)
95
27,683
7.3
2010
152,443
397,650
17,970,760
45,022
36.3 (b)
95
27,443
6.7
2011
152,440
398,552
18,615,486
46,299
36.5
95
27,454
6.1
2012
153,051
405,088
N/A
N/A
36.7
N/A
27,404
4.9
2013
153,051
405,088
N/A
N/A
N/A
N/A
27,168
N/A
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) U.S. Census Bureau: Census 2000, and Annual Estimates of the Population for States and Counties of Minnesota
July 1, 2003 to July 1, 2011, Population Division, U.S. Census Bureau.
(3) State Department of Commerce.
(4) Dakota County Demographics Report.
(a) State of Minnesota median age.
(b) Dakota County median age.
(5) Dakota County Demographics Report – percentage of the population with a high school degree or higher.
Dakota County 2008 Community Indicators Report (June 2008) – Economic Well-Being – Educational Attainment.
(6) 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.
(7) Minnesota Department of Employment and Economic Development.
-137-
INDEPENDENT SCHOOL DISTRICT NO. 196
Principal Employers
by Major Municipalities in the District
2012 and 2006
2012 (1)
Employer
Employees
Rank
Dakota County
4,000
850
260
250
145
140
90
75
55
50
1
8
19
21
25
26
27
28
29
30
Apple Valley
ISD No. 196
Target
Uponor Wirsbo Company
Dakota County
Wal-Mart
Apple Valley Health Care Center
Wings Financial Credit Union
Apple Valley Ford
Minnesota Zoological Gardens
Apple Valley Medical Clinic
1,418
690
400
390
380
290
254
242
220
210
6
12
14
16
17
18
20
22
23
24
Eagan
Thomson Reuters
Blue Cross & Blue Shield
U.S. Postal Service
United Parcel Service
Ecolab Research Facility
Coca-Cola Midwest Bottling
Wells Fargo Mortgage
UNISYS
Prime Therapeutics
Arogsy University
6,800
3,100
2,000
1,498
1,200
850
800
700
690
400
2
3
4
5
7
8
8
11
12
14
(1)
Percentage
of Total
Dakota County
Employment
405,088
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
22,420
17.84 %
3.79
1.16
1.12
0.65
0.62
0.40
0.33
0.25
0.22
0.99 %
0.21
0.06
0.06
0.04
0.03
0.02
0.02
0.01
0.01
49,978
2.84
1.38
0.80
0.78
0.76
0.58
0.51
0.48
0.44
0.42
0.35
0.17
0.10
0.10
0.09
0.07
0.06
0.06
0.05
0.05
10.49
4.78
3.08
2.31
1.85
1.31
1.23
1.08
1.06
0.62
1.68
0.77
0.49
0.37
0.30
0.21
0.20
0.17
0.17
0.10
64,854
28,447
137,252
20.73 %
7.02 %
City of Rosemount information is from 2006, as principal employers information for years after 2006 for the City of
Rosemount is not readily available.
Source: Minnesota Department of Employment and Economic Development, 2012 comprehensive annual financial reports for
the City of Apple Valley, City of Eagan, and United States Census Bureau.
-138-
2006
Employer
Employees
Rank
Dakota County
Percentage
of Total
Dakota County
Employment
224,077
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
1.79 %
0.38
0.12
0.11
0.06
0.06
0.04
0.03
0.02
0.02
48,875
3.91
0.71
0.60
0.44
0.42
0.36
0.32
0.28
0.25
0.25
0.85
0.16
0.13
0.10
0.09
0.08
0.07
0.06
0.05
0.05
9.12
5.02
3.50
2.43
2.39
2.18
1.37
1.06
1.06
0.84
2.68
1.47
1.03
0.71
0.70
0.64
0.40
0.31
0.31
0.25
21.65 %
12.79 %
65,764
28,656
132,379
-139-
INDEPENDENT SCHOOL DISTRICT NO. 196
Employees by Classification
Last Ten Fiscal Years
2004
Administrators/principals (1)
Supervisors/special staff
Teachers/nurses
Clerical
Building chiefs and custodians
Food service
Truck drivers/mechanics/bus driver
Non-licensed specialists
Total
2005
2006
Fiscal Year
2007
93
55
2,535
916
194
166
244
33
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
4,236
4,048
4,650
4,311
(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
-140-
2008
2009
2010
2011
2012
2013
103
64
3,002
1,165
261
248
297
45
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
5,185
5,187
4,624
4,160
4,120
4,342
-141-
INDEPENDENT SCHOOL DISTRICT NO. 196
Operating Indicators
Standardized Testing and Graduation Rates
Last Ten Fiscal Years
2004
2005
Fiscal Year
2007
2006
Standardized tests
MCA-II reading (1)
Grade 3
Grade 4
Grade 5
Grade 6
Grade 7
Grade 8
Grade 10
80 %
–
84
–
80
–
89
87 %
–
90
–
83
–
90
89 %
86
86
82
74
75
78
86 %
81
83
71
77
71
74
MCA-II math (1)
Grade 3
Grade 4
Grade 5
Grade 6
Grade 7
Grade 8
Grade 11
82
–
85
–
80
–
83
88
–
91
–
84
–
83
86
80
69
67
63
64
44
87
83
75
70
70
61
49
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
61.3
57.6
–
–
–
–
–
–
63.5
53.6
23.5
23.4
23.3
MCA-II science (1)
Grade 5
Grade 8
High school
MAP (Measures of Academic Progress)
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 (2)
District graduation rates
State graduation rate
23.8
33
15
33
19
26
14
20
15
96.40
96.69
96.81
96.90
96.80
96.75
96.38
95.81
95.71
95.81
95.26
94.27
92.47
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
95.83 %
95.57 %
95.61 %
94.60 %
97 %
89 %
96 %
90 %
94 %
91 %
95 %
N/A
N/A – Not Available
(1)
Percent of students scoring at or above proficiency on the Minnesota Comprehensive Assessments (MCA)
(2)
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 nine. 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
-142-
2008
2009
2010
2011
2012
2013
85 %
79
84
76
72
76
82
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
90
81
80
71
64
65
46
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
43.1
40.6
57.3
55.3
41.2
63.5
53.4
49.3
66.9
57
46
65
61
46
68
66
51
68
65.4
59.9
68.8
58.9
67.1
58.3
69.5
60.7
63.1
61.3
64.3
62.5
70.9
56.7
73.0
60.2
71.5
61.4
75.7
60.3
72.9
67.8
66.3
55.5
23.8
23.9
24.0
24.0
24.1
24.0
39
19
40
19
39
19
29
12
36
16
36
16
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
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
94.50 %
95.59 %
95.40 %
95.68 %
95.68 %
95.47 %
95 %
74 %
95 %
74 %
95 %
76 %
95 %
77 %
86 %
78 %
89 %
N/A
-143-
INDEPENDENT SCHOOL DISTRICT NO. 196
Capital Asset Statistics by Program and Classification
Last Ten Fiscal Years
2004
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
$
72,797
1,225,987
2005
$
66,702
1,286,791
Fiscal Year
2007
2006
$
141,342
1,180,667
$
132,142
1,227,903
2,391,987
81,192
84,171
46,761
183,777
8,867,002
1,706,012
1,327,231
289,597,959
2,397,333
94,868
141,194
54,710
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
$ 305,584,875
$ 310,184,056
$ 316,587,681
$ 318,036,400
$
$
$
$
8,870,712
9,054,911
252,034,004
8,390,145
9,244,705
1,938,072
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
16,052,326
305,584,875
16,052,326
310,184,056
17,761,310
316,587,681
17,616,134
318,036,400
1,876,780
12,066,972
42,572,146
55,022,066
$ 307,461,655
$ 322,251,028
$ 359,159,827
$ 373,058,466
Source: ISD No. 196 Finance Department
-144-
2008
$
147,409
1,025,661
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
2,496,662
154,190
228,326
59,378
232,944
11,780,723
1,947,582
2,153,834
337,772,769
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
42,437
166,854
175,634
324,676
2,164,109
3,711,558
9,019,255
14,019,124
385,485,390
$ 357,999,478
$ 389,066,335
$ 396,020,738
$ 399,260,806
$ 410,623,949
$ 416,309,397
$
$
$
$
$
$
8,870,712
9,886,433
292,938,345
13,040,963
11,804,100
2,242,901
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
19,216,024
357,999,478
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
29,026,823
3,608,373
1,059,415
3,748,287
271,931
425,007
$ 387,026,301
$ 392,674,708
$ 397,080,153
$ 403,009,093
$ 410,895,880
$ 416,309,397
-145-
INDEPENDENT SCHOOL DISTRICT NO. 196
Expenditures per Student (Average Daily Membership)
Last Ten Fiscal Years
2004
Administration
$
District support services
2005
345
$
Fiscal Year
2007
2006
347
$
355
$
359
319
261
250
252
4,184
4,393
4,599
4,643
105
112
110
111
Special education instruction
1,346
1,558
1,672
1,688
Instructional support services
368
393
413
417
Pupil support services
547
623
685
692
Sites and buildings
644
635
730
737
23
27
27
27
Food service
309
319
344
347
Community service
211
210
246
248
Capital outlay
243
689
1,314
1,327
Debt service
739
724
821
829
Elementary and secondary regular instruction
Vocational education instruction
Fiscal and other fixed cost programs
Total expenditures
Average daily membership
$
9,382
28,182
$
10,290
28,124
$
11,566
27,957
$
11,676
27,694
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
-146-
2008
$
$
2009
374
$
2010
450
$
2011
402
$
2012
392
$
2013
402
$
406
291
312
306
295
310
313
5,044
5,999
5,466
5,396
5,417
5,470
127
172
132
136
141
143
1,893
2,188
2,005
2,046
2,063
2,084
600
698
520
490
497
502
727
853
793
805
741
748
929
887
806
806
964
973
15
20
17
18
20
20
369
411
391
401
411
415
296
357
330
335
341
345
435
287
338
361
318
321
796
803
846
831
838
846
11,898
27,495
$
13,436
27,332
$
12,352
$
27,228
12,313
27,099
-147-
$
12,465
27,053
$
12,587
26,790
INDEPENDENT SCHOOL DISTRICT NO. 196
Food Service
School Lunch Program Data
Last Ten Fiscal Years
(1)
Participation
as a Percentage
of Average Daily
Attendance
Year Ended
June 30,
Average Daily
Attendance (1)
Total
Lunches
Served
Days
Average Daily
Participation
2004
24,308
2,381,418
173
13,765
56.6 %
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
Attendance is deemed to be 95 percent of enrollment.
Source: ISD No. 196 Summary: Food Service Statistics Reports
-148-
Free Lunch
Number
Served
Percent
of Total
Reduced Lunch
Percent
Number
of Total
Served
299,685
12.6 %
103,352
4.3 %
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
-149-
INDEPENDENT SCHOOL DISTRICT NO. 196
School Facilities
as of June 30, 2013
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
Facility
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.
-150-
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
682
600
763
673
603
894
671
430
633
777
588
945
628
833
678
379
460
514
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
823
1,158
1,136
1,186
893
841
83
87
97
91
53
360,104
382,970
338,242
401,248
71,171
1,990
2,040
2,015
2,015
400
1,624
2,102
2,074
2,055
410
18
26
6
N/A
N/A
27,659
50,338
13,730
22,939
13,744
310
160
309
200
N/A
239
63
–
237
28
N/A
N/A
N/A
N/A
25,600
23,937
28,964
18,677
368
N/A
N/A
N/A
–
–
–
–
-151-
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
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1,056
1,262
1,209
1,015
1,403
1,698
968
924
2,359
3,553
$
98,213,030
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
982
402
290
159
76
46
38
38
16
59
$
96,872,709
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
1,105
1,198
958
809
689
745
3,017
2,688
2,995
4,248
4,438
71,295,000
88,394,500
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
434
245
143
78
44
57
21
31
61
31
47
44,731,000
69,607,000
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
2,640
2,260
2,010
1,885
2,638
4,078
2,400
2,616
2,259
2,699
136,906,550
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
211
147
107
119
67
30
13
32
73
154
58,264,000
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
City of Apple Valley
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
City of Eagan
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(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
Source: City of Rosemount, City of Apple Valley, and City of Eagan
-152-
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 –
(Decrease)
Handicapped Kindergarten Elementary Secondary
Number
Total Pupil Units
Percent
Increase
Number (Decrease)
2004
298.80
1,673.04
12,520.90
13,688.76
28,181.50
(1.3) % 32,680.15
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
402.19
1,682.94
11,925.61
12,779.56
26,790.30
(1.0)
31,076.81
(1.1)
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
Handicapped Kindergarten
1–3
Fiscal 2004
through 2007
Fiscal 2008
through 2013
Source:
Elementary
4–6
Secondary
Various
0.557
1.115
1.060
1.300
Various
0.612
1.115
1.060
1.300
Minnesota Department of Education
-153-
0.2 %
-154-