School District of Cadott
Community
Preliminary Budget Hearing
August 18, 2014
Budget Summary
The 2014-2015 Proposed Budget is
based upon:
BALANCE
Balanced Initiatives
•
•
•
•
•
•
•
•
•
Elementary Building Renovation
HORNET Pride
Technology Updates
The needs of the students with communities ability to pay
Health Insurance Rate Cumulative Reductions of more than
15% from 3 years ago
Past Security Initiatives – Cameras, Door Entry Access, etc.
within existing District funds
Refinancing of District Debt (2014-15) – Taxpayer Savings
Taxing Under Allowable Revenue Limit
Cost Per Student lower than Surrounding School Districts,
CESA 10, and State
The purpose of the Annual
Budget is to achieve educational
objectives that will impact the
future.
The Annual Budget
• Is a financial plan based upon budget priorities throughout
the year
• Annual Budget adjustments are made for the final
certification of general aid
• The property tax levy to support the budget is submitted for
consideration at the Budget Hearing
Budget Priorities
• Focus on balancing the needs of all stakeholders: students, staff, and
community members to continue to deliver the best education
possible.
• Continue to assess health insurance cost in conjunction with the
Health Insurance Committee to reduce costs.
• Implement policies and procedures that ensure fiscal responsibility.
• Continue to support our excellent food service that continues to offer
nutritious quality meals and ensure those qualifying for free &
reduced meals are provided with them.
• Continue district exploration of energy conservation methodologies
Budget/District Priorities
• Provide financial solvency by continuing to prioritize budget priorities
that are in the long-term best interest of students and taxpayers.
• Maintain buildings and grounds using the district’s soon to be created
ten year maintenance schedule as a repair timeline tool.
• Address annual transportation replacement needs to ensure
children’s safety
• Continue to provide necessary Professional Development to teachers
and support services.
• Continue evaluation of enrollment trends and develop long-range
budget plans for the school district.
Budget Assumptions
•
District enrollment was estimated to remain flat from last year using the
Revenue Limit September Third Friday Count methodology calculation
– Initial registration numbers (8/15/14) indicate a decline in enrollment
– It is assumed the district will have a net loss of 8 students to open
enrollment
•
No significant program changes will be made in 2014-2015.
•
Health Insurance cost will increase by approximately 10%.
•
No significant increases in Fuel Costs
•
No significant increases in Utilities
•
No significant increases in Operating Expenses
Budget Assumptions
• In January 2014, the school board directed
administration to develop a budget capped by a
5.0% tax levy increase of which $54,000 will go to
increased debt service payments and $139,732
will go into funds 10, 38, 39, & 80.
• Although we expect to balance the budget during
the school year, we are currently projecting a
deficit of $574,688 to be covered by Fund Balance
Reserve
• Changing enrollment and unanticipated expenses
may require some additional use of fund balance.
Fund Balance Reserve
• The fund balance reserve is built up from years when
there is more revenue than expenditures often a result
of cutting staff or underspending the budget.
• The fund balance is important for cash flow and
unanticipated expenditures
– A healthy fund balance is 15%-20% of total expenditures allowing the
district to cover 2 months of Operating Expenses and an emergency.
– In the past, it was not enough to cover the cash flow in our district during
the school year resulting in Short term borrowing up to $1 million and a
Line of Credit with Citizens State Bank in Cadott costing over $10,000
• Our current 2013-14 fund balance reserve is
$1,664,418 million (about 13.5% of our total expenditures).
• Our projected 2014-15 fund balance reserve will be
$1,089,730 Million (about 8.7% of our total expenditure)
Historical Fund Balance Reserve Trend
General Fund Balance As of June 30th
2005
Amount
$
% of Previous
$ Change
2,239,936
2006
$
134.49%
$
574,461
2007
2,343,764 $
104.64%
$
103,828
2,094,630 $
89.37%
$
(249,134) $
2008
1,879,358 $
89.72%
(215,272) $
2009
2010
1,879,358 $
100.00%
-
1,805,149 $
96.05%
$
(74,209) $
2011
1,563,977 $
86.64%
(241,172) $
2012
2013
2014
1,588,531 $
1,668,694 $
101.57%
105.05%
24,554
$
80,163
99.81%
$
General Fund Reserve at end of June
$2,500,000
$2,000,000
$1,500,000
Amount
$1,000,000
$500,000
$2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1,665,475 $
(3,219) $
2015
1,089,730
65.43%
(575,745)
Total Budget
• The total budget includes over 14 major funding
categories and hundreds of “line items”.
• The total budget for the school district in 20142015 is expected to be over $10,000,000.
Where does the Money Come From?
• Wisconsin School
finance regulations
specify the amount of
dollars the district is
permitted to raise from
property taxes and
general state aid. This
amount is called the
revenue limit.
Major Revenue
• Revenue is controlled by the state imposed
revenue cap (1993).
• Revenue primarily consists of:
– Tax Levy (school property taxes)
– State Aid (general and categorical)
– Federal Aid (categorical)
– Fund Balance Reserve (unspent designated
dollars from previous years)
Revenue Limit
• The revenue limit is based on a variety of factors with
the greatest weight placed on student enrollment.
• According to the state law, our school district could
generate revenue of $10,773,298 million for funds
under the revenue limit.
• Despite the recent reductions in state aid, we are one
of the few districts in the state that consistently
spends below the revenue limit ($3,142,711 million
under projected in 2014-15).
2013-14 Top and Only School Districts
Taxing Under the Allowable Revenue Limit
By at least 1 Million Dollars
2013-14 Top and Only School Districts
Taxing Under the Allowable Revenue Limit
By at Least 1 Million Dollars
District
Name
Ranking by
Dollar Amount
Under Revenue
Limit
Line 11: Revenue
Limit with all
Exemptions
Line 12: General
Aid
Certified
Line 13: Allowable
Line 16: Low Net Allowable Levy Taxing Under the
Levy (includes
Revenue Ceiling (includes Computer
Allowable
Computer Aid)
Aid*
Aid)
Revenue
Amount
1
Hudson
$ 64,980,648 $
27,002,681 $
37,977,967 n/a
$
2
Madison Metropolitan
$ 308,639,942 $
53,802,373 $
254,837,569 n/a
$
254,837,569 $
9,073,440
2.94%
3
Cadott Community
$
10,358,937
$
5,406,131
$
4,952,806
n/a
$
4,952,806 $
2,771,613
26.76%
4
Waupaca
$
22,948,164
$
8,912,843
$
14,035,321
n/a
$
14,035,321 $
2,702,005
11.77%
5
Norris
$
2,622,429 $
287,604 $
2,334,825 n/a
$
2,334,825 $
2,329,825
88.84%
6
D C Everest Area
$ 59,017,050 $
37,017,621 $
21,999,429 n/a
$
21,999,429 $
1,668,207
2.83%
7
Campbellsport
$ 15,237,597 $
6,110,525 $
9,127,072 n/a
$
9,127,072 $
1,614,026
10.59%
9
Galesville-Ettrick
$
8,506,582
n/a
$
6,648,565 $
1,600,000
10.56%
10
Sun Prairie Area
$ 76,345,159 $
39,090,425 $
37,254,734 n/a
$
37,254,734 $
1,482,728
1.94%
11
Waterford Graded
$ 16,055,343 $
6,100,288 $
9,955,055 n/a
$
9,955,055 $
1,343,000
8.36%
12
Stoughton Area
$ 34,887,077 $
15,112,938 $
19,774,139 n/a
$
19,774,139 $
1,275,000
3.65%
13
Gresham School District
$
4,177,642 $
1,641,613 $
2,536,029 n/a
$
2,536,029 $
1,272,180
30.45%
14
Hortonville
$ 33,270,899 $
18,354,515 $
14,916,384 n/a
$
14,916,384 $
1,247,765
3.75%
15
Melrose-Mindoro
$
n/a
$
4,136,052 $
1,163,206
12.99%
16
Menominee Indian
$ 10,123,822 $
3,712,155 n/a
$
3,712,155 $
1,162,155
11.48%
15,155,147
8,953,168
(DPI) 2013-14 Final Revenue Limit Calculation (8/17/2014)
$
$
4,817,116
$
$
6,411,667 $
6,648,565
4,136,052
37,977,967 $ 12,373,976
Percent of
Allowable
Revenue
19.04%
State Aid
• State Aid is mostly dependent on enrollment, district
property valuation and spending from the previous
year.
• 2014-15 state aid (estimated) = $5.6 million
• State aid for our district in 2014-15 was projected to
be higher than 2013-14, but due to declining
enrollment and unspent 2013-14 budget allocation it
is anticipated our state aid will be corrected by DPI to
less than last year.
• A higher percentage of state money continues to be
directed to schools through levy credits (not
equalized) and vouchers.
The School District of Cadott receives 94% of
its money from two sources.
Projected Fund 10 Revenue
Intermediate
1%
Interdistrict (Out of State)
0%
Interdistrict
(Wisconsin)
2%
Local Sources
25%
Other Revenue
0%
Non-Revenue
Sources
0%
Federal Sources
3%
State Sources
69%
Where is the Money Spent?
Two different perspectives
• Expenditures by Function
• Expenditures by object
– Is the purpose for which
– Is the type of goods and
the expenditure is made.
services purchased.
Expenditures by Function
2013-14 Expenditures by Function
Note: Fund 10 Expenditures only
Facility Costs $403 4%
Transportation Costs
$591 6%
Food & Comm Serv
Costs $479 5%
Instruction $5,914 56%
Oper/Admin/Other
$2,297 22%
Pupil/Staff/Support
$778 7%
Division of Expenditures by Object
• Wages and Benefits
67%
Insurance & Judgements
2%
Debt Retirement
0%
Capital Objects
1%
Non-Capital Objects
4%
Non-Salary 33%
Fund 10 Expense by Object
Other Expenses
1%
Interfund Transfers
11%
Purchased Services
14%
Salaries
45%
Employee Benefits
22%
Reducing Expenditures
• Previous expenditure reductions include:
– Higher employee contributions for retirement and health
insurance.
– Health insurance plan design changes.
– Reduction/elimination of Post Retirement Benefits
– Reorganization/reduction in maintenance, administrative
and special education staffing
– Carrier change for school district insurances (auto, work
comp, liability, property, etc.)
– Elimination of short-term borrowing
– Hiring less experienced teachers
– Refinancing Callable Debt
Other Expenditures
• Fund 73- Post Retirement Benefit Fund
Fund 73 was established as an irrevocable trust to account for post-employment benefits.
Funds are invested with MidAmerica Administrative and Retirement Solutions. Below
is an audited accounting of the trust fund:
Balance 7-1-2013 $ 1,429,275.90
Revenue
$
120,839.89
Expenditures
Balance 6-302014
$ (289,850.15)
$ 1,260,265.64
Based on an actuarial study completed in June of 2014, the district's post-employment benefit
trust is fully funded based on current retirees and current post-employment benefits offered to
staff.
Other Expenditures
Fund 80 Report
Fund 80 is used to support the summer recreation activities of the Cadott School District.
Shown below is the audited accounting of Fund 80.
Summer Recreation Softball
$
1,924.18
Balance 7/1/2013
$ 8,513.73
Summer Recreation Baseball
Summer Recreation T-Ball
$
$
2,314.44
-
Revenue
Expenses
$ 12,241.00
$ (9,567.30)
Summer Recreation Supervisor
$
5,328.68
Balance 6/30/14
$ 11,187.43
Total Budgeted Expenses:
$
9,567.30
Tax Levy
$
8,290.00
Fees
$
3,951.00
$
12,241.00
Total Budgeted Revenue
What is a Levy Rate vs. a Mill Rate
• The District sets a percentage rate for taxes,
called a levy rate, which is then calculated
against the assessed equalized value of each
homeowner’s property.
• Mill rate is the amount of tax payable per
dollar of the assessed value of each
homeowner’s property.
Cadott’s School District’s
Proposed Mill Rate
• The property tax levy required to support the
2014-15 budget is estimated at $2,061,503.
Increasing the Levy
• If the Board increases the school tax levy by
5.0%, the levy amount will increase $138,732.
• Assuming no increase in property valuation, the
mill rate will increase from $9.02 to $9.47 (per
$1,000 of property valuation).
• $100,000 of property = $45/year, $3.75/month,
12.5 cents/day school tax increase
Mill Rate Analysis
2000 – 01 = $9.20
2001 – 02 = $7.86
2002 – 03 = $7.78
2003 – 04 = $7.30
2004 – 05 = $6.99
2005 – 06 = $6.95
2006 – 07 = $6.50
2007 – 08 = $6.57
2008 – 09 = $6.31
2009 – 10 = $6.81
2010 – 11 = $7.13
2011 – 12 = $7.49
2012 – 13 = $8.73
2013 – 14 = $9.02
Projected
2014-2015 = $9.47
$20.00
$18.00
$16.00
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$-
Fall 2013
Fall 2012
Fall 2011
Fall 2010
Fall 2009
Fall 2008
Fall 2007
Fall 2006
Fall 2005
Fall 2004
Fall 2003
Fall 2002
Fall 2001
State
District
Fall 2000
Fall 1999
Fall 1998
Fall 1997
Fall 1996
Fall 1995
Fall 1994
Fall 1993
Fall 1992
Fall 1991
Fall 1990
Fall 1989
Fall 1988
Fall 1987
Fall 1986
Fall 1985
Fall 1984
Dollars per $1,000 of Equalized Value
Mill Rate Analysis
Survey of Equalized Tax Rates
Surrounding Area Mill Rate Comparisons
Area Mill Rate Comparison 13-14
$8.72
$9.47
$10.18
Chippewa
Falls Area
Fall Creek
$9.02
Stanley-Boyd Cadott
Area
Community
$11.24
$11.68
Augusta
Cornell
2013-14 Surrounding district Mill Rate Comparisons
District
Stanley-Boyd Area
Levi Amount
Mill Rate
$
2,741,723
Tax Value
$8.72
$9.02
$ 314,318,141
Cadott Community
$2,774,656
Chippewa Falls Area
$22,290,665
$2,690,149
$10.18
$2,353,610,431
$264,333,466
Augusta
$3,212,003
$11.24
$285,765,075
Cornell
$1,873,363
$11.68
$160,376,098
Fall Creek
$9.47
$307,721,338
What Meaning Can we draw from the Mill Rate
Comparison?
•
Actually, very little. Unless we compare student membership, Levi Amounts, Tax
Valuation, Under Levy Amount, Mill Rate, etc. over several years
2013-14 Longitudinal Comparison between Stanley-Boyd and Cadott
Cadott
District Membership
Maximum Revenue Limit with Exemptions
Total Equalized Property Value
Equalized Mill Rate
District Total Equalization Aid
District Total Shared Cost
Total Levy
Under Levy Revenue Limit
2008-09
$
$
$
$
$
$
$
873
8,682,698 $
298,077,610 $
6.310 $
5,692,526 $
7,395,682 $
1,880,975 $
1,372,640 $
2008-09
(2007-08 DATA)
Stanley-Boyd
District Membership
Maximum Revenue Limit with Exemptions
Total Equalized Property Value
Equalized Mill Rate
2009-10
District Total Equalization Aid
District Total Shared Cost
Total Levy
$
$
$
$
$
$
Under Levy Revenue Limit
$
874
9,248,107 $
304,016,974 $
6.810 $
5,918,533 $
8,077,836 $
2,069,857 $
1,522,860 $
2009-10
(2008-09 DATA)
974
8,798,977 $
313,380,835 $
7.400 $
7,038,526 $
8,921,456 $
2,318,010 $
451
2010-11
$
2011-12
881
9,490,291 $
301,886,849 $
7.130 $
5,841,679 $
8,070,985 $
2,152,651 $
1,762,974 $
2010-11
(2009-10 DATA)
2012-13
888
9,763,013 $
313,840,269 $
7.490 $
5,452,595 $
8,230,429 $
2,349,867 $
2,226,861 $
2011-12
(2010-11 DATA)
2013-14
892
10,286,078 $
308,620,814 $
8.730 $
5,416,660 $
7,896,631 $
2,693,841 $
2,182,262 $
2012-13
(2011-12 DATA)
2013-14
(2012-13 DATA)
968
8,976,026 $
318,090,804 $
7.560 $
6,821,769 $
9,404,725 $
2,406,086 $
964
9,131,886 $
316,890,130 $
8.080 $
6,658,496 $
9,154,674 $
2,561,413 $
956
9,041,742 $
318,714,098 $
8.490 $
6,263,901 $
9,167,318 $
2,705,136 $
963
9,191,658 $
308,883,313 $
8.880 $
6,423,181 $
8,911,980 $
2,742,052 $
294,257
448,390
97,841
88,503
$
$
$
886
10,358,937
307,721,338
9.020
5,406,131
7,734,029
2,774,656
2,771,613
$
973
9,303,841
314,318,141
8.720
6,571,374
9,083,761
2,741,723
52,493
Projected tax impact for a home
valued at $100,000
• Last years mill rate was
$9.02 per $1000 of
property value
• This years mill rate
projection is $9.47 per
$1000 of property value.
• Annual Impact = increase
of $45.00
Annual Property Valuation Tax Impact
2014-15 Projected Tax Table
2014-15 Projected Property Tax Impact
2013-14 Equalized Value of the District - $307,739,910
2014-15 Projected Equalized Value of the District - $307,381,335
2013-14 Levy
2014-15 Levy
Levy $ Increase
Per Month Increase
Per day increase
$9.02
$9.47
$0.45
$100,000
$902.00
$947.00
$45.00
$3.75
$0.12
$125,000
$1,127.50
$1,183.75
$56.25
$4.69
$0.15
$150,000
$1,353.00
$1,420.50
$67.50
$5.63
$0.18
$175,000
$1,578.50
$1,657.25
$78.75
$6.56
$0.22
$200,000
$1,804.00
$1,894.00
$90.00
$7.50
$0.25
$225,000
$2,029.50
$2,130.75
$101.25
$8.44
$0.28
$250,000
$2,255.00
$2,367.50
$112.50
$9.38
$0.31
Property Value
This information based on the District-wide Levy
*Note: Potential Home Owner Property Tax Impact is driven by Overall District Property Valuation. (If a $100,000 2013-14 home value decreases in
2014-15 an actual tax increase may not be seen)
Questions?