Integrity. Commitment. Performance.™
Wheaton Warrenville
CUSD 200
PMA Financial Planning Program
January 23, 2013
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
2
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Data Elements
•
•
•
•
•
•
•
•
Annual Financial Reports (AFRs) for the past five years
District’s FY13 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 – $149,133,750
REVENUE BY SOURCE DETAIL - FY 2013
General State Aid
4.2%
Other State
7.2%
Federal
4.6%
Other Local
5.3%
Property Taxes
78.6%
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
4.5%
4.10%
4.0%
3.5%
3.00%
3.0%
2.70%
2.50%
2.50%
2.50%
2.50%
2.50%
2.5%
2.0%
1.70%
1.50%
1.5%
1.0%
0.5%
0.10%
0.0%
2008
2009
2010
2011
2012
2013
Actual
Data & Assumptions provided by District
2014
2015
2016
2017
2018
Projected
5
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – Property Taxes
New Growth (In Millions)
$100.0
$86.54
$90.0
$80.0
$70.0
$60.0
$50.0
$50.0
$40.0
$30.0
$29.10
$23.19
$20.0
$30.0
$30.0
2012
2013
$30.0
$30.0
$30.0
$30.0
2017
2018
$17.91
$10.0
$0.0
2008
Data & Assumptions provided by District
2009
2010 2011
Actual
6
2014 2015
Projected
2016
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Revenue Assumptions – Other Local Revenue
• CPPRT:
– Projected at $1.635 million annually (current DOR estimate)
• Investment Income:
– 0.15% rate of return
• All other local revenues:
– Projected at current FY13 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 increases projected
– 85% proration for FY14, 80% proration thereafter
• Remain in Alternate Formula Funding
– Other State Categorical Grants
• Projected at current FY13 budget levels
• Drivers Education
• Federal Revenue
– Projected at current FY13 budget levels
Data & Assumptions provided by District
8
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
General State Aid Revenue (in Thousands)
10,000
$9,084
9,000
8,000
$7,214
$6,559 $6,440 $6,300
7,000
$6,090
6,000
$5,761 $5,715 $5,690 $5,630
5,000
4,000
3,000
2,000
1,000
0
2009
2010
2011
2012
2013
Actual
Data & Assumptions provided by District
2014
2015
2016
2017
2018
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  = +/- $42,000
• General State Aid
– $100 Foundation Level  = +/- $115,000
– 1% proration  = +/- $71,000
Data & Assumptions provided by District
10
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Operating Funds Expense Budget – $149,133,590
FY 2013 EXPENDITURES BY OBJECT
Purchased Services
13.1%
Supplies And
Materials
4.1%
Capital Outlay
0.6%
Other Objects
3.4%
Termination Benefits
0.1%
Non-Capitalized
Equipment
0.0%
Benefits
11.3%
Salaries
67.5%
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
• FY14 & FY15: per current contract
• FY16-18: 2.5% annual increases, plus lane movement ($500,000)
– Support Staff
• FY14: 2.75%
• FY15 :2.0%
• FY16-18: 2.5% annually
– Administration
• FY14 & FY16-18: 2.5% annual increases
• FY15: 2.0%
Data & Assumptions provided by District
12
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Expenditure Assumptions - Other
• Health & Dental Benefits
– FY14-18: 7% annual increases
• Purchased Services, Supplies, Capital Outlay, Tuition
– FY14-18: 2.5% annual increases
Data & Assumptions provided by District
13
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
Staffing Assumptions
CERTIFIED STAFF (FTE)
1200.0 1,055.2
1,055.2
1,055.2
1,055.2
1,055.2
1,055.2
2017
2018
1000.0
800.0
600.0
400.0
200.0
0.0
2013
2014
Actual
2015
2016
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 compounding @
.5% per year ($440,000 per each .5%)
• Includes known retirements in future years (143 over
next 4 years) with replacement teachers hired in at the
BA+24 Lane Step 3
• Current FY13 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 2013
FY 2014
REVENUE
Local
State
Federal
Other
TOTAL REVENUE
% chg
FY 2015
% chg
$125,119,400
$17,083,000
$6,931,350
$0
$149,133,750
$129,333,345
$16,700,261
$6,931,350
$0
$152,964,955
3.37%
-2.24%
0.00%
EXPENDITURES
Salary and Benefit Costs
Other
TOTAL EXPENDITURES
$117,505,500
$31,628,090
$149,133,590
$120,548,263
$32,416,292
$152,964,555
SURPLUS / DEFICIT
$160
$400
$756,090
$833,868
$4,622,532
$4,163,873
OTHER FINANCING SOURCES/USES
Transfer Among Funds (Net)
Sale of Bonds
Other Financing Sources
Other Financing Uses
TOTAL OTHER FIN. SOURCES/USES
$22,840
$0
$0
$0
$22,840
($1,000,000)
$0
$0
$0
($1,000,000)
($500,000)
$0
$0
$0
($500,000)
($500,000)
$0
$0
$0
($500,000)
($1,500,000)
$0
$0
$0
($1,500,000)
($1,500,000)
$0
$0
$0
($1,500,000)
SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES
$23,000
($999,600)
$256,090
$333,868
$3,122,532
$2,663,873
BEGINNING FUND BALANCE
$40,913,746
$40,936,746
$39,937,146
$40,193,237
$40,527,105
$43,649,637
PROJECTED YEAR END BALANCE
$40,936,746
$39,937,146
$40,193,237
$40,527,105
$43,649,637
$46,313,510
FUND BALANCE AS % OF EXPENDITURES
27.45%
26.11%
25.80%
25.30%
27.04%
27.73%
3.03%
-1.97%
0.00%
2.57%
$133,250,386
$16,371,752
$6,931,350
$0
$156,553,488
2.59%
2.49%
2.57%
$122,573,198
$33,224,200
$155,797,397
FY 2016
% chg
3.39%
-0.28%
0.00%
2.35%
$137,763,882
$16,325,320
$6,931,350
$0
$161,020,551
1.68%
2.49%
1.85%
$126,134,379
$34,052,305
$160,186,683
FY 2017
% chg
3.66%
-0.15%
0.00%
2.85%
$142,810,058
$16,301,053
$6,931,350
$0
$166,042,461
2.91%
2.49%
2.82%
$126,518,816
$34,901,112
$161,419,929
FY 2018
% chg
3.62%
-0.37%
0.00%
3.12%
$147,982,276
$16,240,344
$6,931,350
$0
$171,153,970
0.30%
2.49%
0.77%
$131,218,957
$35,771,140
$166,990,097
3.71%
2.49%
3.45%
3.08%
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.)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
$50
$46,313,510
$43,649,637
$40,913,746
$40
$40,936,746
$39,937,146
$40,193,237
$40,527,105
$37,112,266
$29,757,129
Millions
$30
$28,087,893
$24,646,753
$20
$10
$8,317,452
$7,291,865
$5,619,533
$4,215,525
$2,585,917
$0
($2,181,938)
$3,294,409
$4,496,144
$1,529,052
($2,466,114)
($4,376,568)
($10)
Educational
2008
2009
Data & Assumptions provided by District
Operations and Maintenance
2010
2011
2012
2013
Transportation
2014
17
2015
IMRF
2016
2017
Working Cash
2018
FY End Balances
Low-Point Balance
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
FY08 Projection Review
Projected Year-End Balances
(Educational, Operations and Maintenance, Transportation, IMRF, and Working Cash Funds.)
2003
2004
2005
2006
$31,932,003
$31,153,987
2007
2008
2009
2010
2011
2012
2013
$40,000,000
$27,720,732
$30,000,000
$25,663,021
$19,813,568
$20,253,081
$18,363,559
$20,000,000
$12,590,100
$10,000,000
$5,928,630
$5,122,282
$4,170,495
($227,519)
($4,578,262)
$0
($3,104,148)
($4,325,373)
($6,904,625)
($9,709,141)
($10,000,000)
($14,114,911)
($18,643,544)
($20,000,000)
($27,707,764)
($30,000,000)
($37,076,610)
($40,000,000)
($48,812,941)
($50,000,000)
($60,000,000)
Educational
2003
2004
2005
Data & Assumptions provided by District
Operations and
Maintenance
2006
2007
2008
Transportation
2009
2010
18
2011
IMRF
2012
2013
Working Cash
FY End Balances
Low-Point Balances
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.)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
$50
$46,313,510
$43,649,637
$40,913,746
$40
$40,936,746
$39,937,146
$40,193,237
$40,527,105
$37,112,266
$29,757,129
Millions
$30
$28,087,893
$24,646,753
$20
$10
$8,317,452
$7,291,865
$5,619,533
$4,215,525
$2,585,917
$0
($2,181,938)
$3,294,409
$4,496,144
$1,529,052
($2,466,114)
($4,376,568)
($10)
Educational
2008
2009
Data & Assumptions provided by District
Operations and Maintenance
2010
2011
2012
2013
Transportation
2014
19
2015
IMRF
2016
2017
Working Cash
2018
FY End Balances
Low-Point Balance
Integrity. Commitment. Performance.™
PMA Financial Planning Program| Wheaton Warrenville CUSD 200
ISBE Financial Profile
4
3.80
3.5
3
3.35
3.00
3.70
3.70
3.70
3.70
3.70
3.70
3.35
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
2008
2009
2010
Data & Assumptions provided by District
2011
2012
2013
2014
20
2015
2016
2017
2018
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 2013 PMA Financial Network, Inc.
Data & Assumptions provided by District
21
Integrity. Commitment. Performance.™