Integrity. Commitment. Performance.™
Wheaton Warrenville
CUSD 200
PMA Financial Planning Program
January 22, 2014
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Process
• What is the Financial Planning Program (FPP)?
– A comprehensive, interactive planning process that can be
dynamically updated to assist the District in making
important financial decisions.
• How are we going to use the plan?
–
–
–
–
–
Budget Planning
Trend Analysis
Set Fiscal Policies
Annual Update and Reassessment
Scenario Analysis
Data & Assumptions provided by District
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Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Data Elements
•
•
•
•
•
•
•
•
Annual Financial Reports (AFRs) for the past five years
District’s FY14 Budget - Base for financial projections
Historical Tax Extension Reports
Equalized Assessed Valuations / New Construction
Contract and scattergram for certified staff
Salary & Benefits information
Enrollment
Student/staffing ratios
Data & Assumptions provided by District
3
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Operating Funds Revenue Budget – $153,674,000
REVENUE BY SOURCE DETAIL - FY 2014
General State Aid
4.2%
Other State
7.0%
Federal
4.8%
Other Local
5.2%
Property Taxes
78.9%
Operating Funds: Educational, Operations & Maintenance, Transportation, IMRF, and Working Cash Funds
Data & Assumptions provided by District
4
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – Property Taxes
Consumer Price Index (CPI) - Levy Years
3.5%
3.0%
3.0%
2.7%
2.4%
2.5%
2.0%
2.4%
2.4%
2.4%
2.4%
1.7%
1.5%
1.5%
1.5%
1.0%
0.5%
0.1%
0.0%
2009
2010
2011
2012
2013
2014
Actual
Data & Assumptions provided by District
2015
2016
2017
2018
2019
Projected
5
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – Property Taxes
New EAV Growth (In Millions)
$100.0
$86.5
$90.0
$80.0
$70.0
$60.0
$50.0
$40.0
$40.0
$30.0 $23.2
$17.9
$20.0
$21.1
$20.0
$20.0
2014
2015
$20.0
$20.0
$20.0
2017
2018
2019
$12.0
$10.0
$0.0
2009
2010
2011
2012
2013
Actual
Data & Assumptions provided by District
2016
Projected
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Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – Other Local Revenue
• CPPRT:
– Projected at current FY14 budget ($2.2 million annually)
• Investment Income:
– 0.15% rate of return
• All other local revenues:
– Projected at current FY14 budget
Data & Assumptions provided by District
7
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – State & Federal
• State Revenue
– General State Aid (GSA)
• Factor of enrollment - Average Daily Attendance (ADA)
• Foundation Level – currently $6,119 prorated to 89%
– No Foundation Level increases projected
– 89% annual proration for FY15, 85% thereafter
• Remain in Alternate Formula Funding
– Other State Categorical Grants
• Projected at current FY14 budget levels
– Except $200,000 transportation reduction resulting from bid cost savings
• Federal Revenue
– Projected at current FY14 budget levels
• Except $142,000 reduction for IDEA Room & Board reimbursement
Data & Assumptions provided by District
8
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
General State Aid Revenue (in Millions)
8
$7.21
$6.56
7
$6.44
$6.32
$6.52
$6.43
$6.21
$6.14
$6.05
6
$5.96
5
4
3
2
1
0
2010
2011
2012
2013
2014
2015
Actual
Data & Assumptions provided by District
2016
2017
2018
2019
Projected
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Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue – Sensitivity
• Tax Levy:
– CPI 1%  ≈ +/- $1.3 million
– New Property: $1 million  ≈ +/- $45,000
– Tax Collection rate: 0.1% ≈ +/- $112,000
• General State Aid
– $100 Foundation Level  ≈ +/- $113,000
– 1% proration  ≈ +/- $73,000
Data & Assumptions provided by District
10
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Operating Funds Expense Budget – $153,539,000
FY 2014 EXPENDITURES BY OBJECT
Purchased Services
12.5%
Supplies And Capital Outlay
Materials
1.0%
4.0%
Other Objects
3.7%
Non-Capitalized
Equipment
0.0%
Benefits
11.4%
Salaries
67.3%
Operating Funds: Educational, Operations & Maintenance, Transportation, IMRF, and Working Cash Funds
Data & Assumptions provided by District
11
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Expenditure Assumptions
• Salaries
– Teachers
• FY15: per current contract
• FY16-19: CPI annual increases, plus lane movement ($500,000)
– All Other Staff
• CPI annual increases
Data & Assumptions provided by District
12
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Expenditure Assumptions - Other
• Health & Dental Benefits
– 7% annual increases
• Purchased Services, Supplies, Capital Outlay, Tuition
– CPI annual increases
– 2.5% Transportation increases per contract for FY15 &
FY16, then CPI
Data & Assumptions provided by District
13
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Staffing Assumptions
CERTIFIED STAFF (FTE)
1200.0 1,069.2
1,069.2
1,069.2
1,069.2
1,069.2
1,069.2
2015
2016
2017
2018
2019
1000.0
800.0
600.0
400.0
200.0
0.0
2014
Actual
Projected
Excluding administration
Data & Assumptions provided by District
14
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Additional Assumptions
• No legislative changes in school funding
• No change to PTELL (Tax Cap)
• Includes potential TRS pension shift starting in FY16
compounding @ .5% per year ($450,000 per each .5%)
• Includes known retirements in future years (112 over
next 3 years) with replacement teachers hired in at the
BA+24 Lane Step 3
• Current FY14 Budget is accurate basis for projections
Data & Assumptions provided by District
15
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Projected Revenues vs. Expenditures - Aggregate
REVENUE / EXPENDITURE PROJECTIONS
BUDGET
FY 2014
FY 2015
% chg
FY 2016
% chg
REVENUE
Local
State
Federal
Other
TOTAL REVENUE
$129,229,900
$17,129,400
$7,314,700
$0
$153,674,000
$131,266,762
$16,967,012
$7,172,700
$0
$155,406,474
1.58%
-0.95%
-1.94%
EXPENDITURES
Salary and Benefit Costs
Other
TOTAL EXPENDITURES
$120,879,100
$32,659,900
$153,539,000
$123,483,520
$33,220,669
$156,704,189
SURPLUS / DEFICIT
$135,000
($1,297,715)
($2,787,850)
$440,780
($427,458)
($1,977,835)
OTHER FINANCING SOURCES/USES
Transfer Among Funds (Net)
Sale of Bonds
Other Financing Sources
Other Financing Uses
TOTAL OTHER FIN. SOURCES/USES
$0
$0
$0
($860,000)
($860,000)
($500,000)
$0
$0
$0
($500,000)
($500,000)
$0
$0
$0
($500,000)
($500,000)
$0
$0
$0
($500,000)
($500,000)
$0
$0
$0
($500,000)
($500,000)
$0
$0
$0
($500,000)
SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES
($725,000)
($1,797,715)
($3,287,850)
($59,220)
($927,458)
($2,477,835)
BEGINNING FUND BALANCE
$44,583,894
$43,858,894
$42,061,179
$38,773,329
$38,714,109
$37,786,651
PROJECTED YEAR END BALANCE
$43,858,894
$42,061,179
$38,773,329
$38,714,109
$37,786,651
$35,308,816
FUND BALANCE AS % OF REVENUES
28.54%
27.07%
24.49%
23.81%
22.63%
20.64%
2.51%
-2.10%
0.00%
1.13%
$134,557,032
$16,610,632
$7,172,700
$0
$158,340,364
2.15%
1.72%
2.06%
$127,105,231
$34,022,982
$161,128,214
FY 2017
% chg
3.23%
-0.42%
0.00%
1.89%
$138,908,484
$16,541,443
$7,172,700
$0
$162,622,627
2.93%
2.42%
2.82%
$127,344,713
$34,837,134
$162,181,847
FY 2018
% chg
3.22%
-0.57%
0.00%
2.70%
$143,387,588
$16,446,527
$7,172,700
$0
$167,006,815
0.19%
2.39%
0.65%
$131,763,448
$35,670,825
$167,434,273
FY 2019
% chg
2.87%
-0.51%
0.00%
2.70%
$147,500,396
$16,361,883
$7,172,700
$0
$171,034,979
3.47%
2.39%
3.24%
$136,488,289
$36,524,525
$173,012,814
3.59%
2.39%
3.33%
2.41%
Operating Funds: Educational, Operations & Maintenance, Transportation, IMRF, and Working Cash Funds
Data & Assumptions provided by District
16
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Historical / Projected Fund Balances
Projected Year-End Balances
(Educational, Operations and Maintenance, Transportation, IMRF, and Working Cash Funds.)
2009
2010
2011
2012
2013
2014
$44,583,894
$43,858,894
2015
2016
2017
$38,773,329
$38,714,109
2018
2019
$50
$42,061,179
$40,913,746
$40
$37,112,266
$37,786,651
$35,308,816
$29,757,129
$28,087,893
$30
Millions
$20
$10
$8,854,651
$8,317,452
$7,291,865
$7,287,702
$5,641,726
$0
$1,637,825
($460,149)
($2,181,938)
($2,466,114)
($2,564,077)
($5,968,343)
($10)
Educational
2009
2010
Data & Assumptions provided by District
Operations and Maintenance
2011
2012
2013
2014
Transportation
2015
17
2016
IMRF
2017
2018
Working Cash
2019
FY End Balances
Est. Low-Point Balance
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
ISBE Financial Profile
4
3.80
3.5
3.35
3.80
3.70
3.35
3.35
3.00
3
3.00
3.00
3.00
3.00
2.5
0 - Watch - 2.61
2
2.62 - Early Warning - 3.07
3.08 - Review - 3.53
3.54 - Recognition - 4
1.5
1
0.5
0
2009
2010
2011
Data & Assumptions provided by District
2012
2013
2014
2015
18
2016
2017
2018
2019
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
The information contained herein is solely intended to suggest/discuss potentially applicable financing applications and is not intended to be a
specific buy/sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a
definitive written agreement.
The analysis or information presented herein is based upon hypothetical projections and/or past performance that have certain limitations. No
representation is made that it is accurate or complete or that any results indicated will be achieved. In no way is past performance indicative
of future results. Changes to any prices, levels, or assumptions contained herein may have a material impact on results. Any estimates or
assumptions contained herein represent our best judgment as of the date indicated and are subject to change without notice. Examples are
merely representative and are not meant to be all-inclusive.
The information set forth herein was gathered from sources which we believe, but do not guarantee, to be accurate. Neither the information,
nor any options expressed, constitute a solicitation by us for purposes of sale or purchase of any securities or commodities.
Investment/financing decisions by market participants should not be based on this information.
You should consider certain economic risks (and other legal, tax, and accounting consequences) prior to entering into any type of transaction
with PMA Securities, Inc. or PMA Financial Network, Inc. It is imperative that any prospective client perform its own research and due
diligence, independent of us or our affiliates, to determine suitability of the proposed transaction with respect to the aforementioned potential
economic risks and legal, tax, and accounting consequences. Our analyses are not and do not purport to be appraisals of the assets, or
business of the District or any other entity. PMA makes no representations as to the actual value which may be received in connection with
a transaction nor the legal, tax, or accounting effects of consummating a transaction. PMA cannot be relied upon to provide legal, tax, or
accounting advice. You should seek out independent and qualified legal, tax, and accounting advice from outside sources.
If posted on a webpage, this information has been prepared for informational and educational purposes and does not constitute a
solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. Services
offered by PMA Securities, Inc. and this registered representative presenter, in particular, are available only in the following state:
IL. This information is not an advertisement of services available in any state other than those listed above.
Copyright 2014 PMA Financial Network, Inc.
Data & Assumptions provided by District
19
Integrity. Commitment. Performance.™