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12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
12-18-13 Public Presentation on Finances, Budget & the Tax Levy
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12-18-13 Public Presentation on Finances, Budget & the Tax Levy

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  • This chart shows how expenditures have increased in Dunlap over the past 8 years. Although some years have been higher and some years lower, the average has been just over 8% in increased expenditures. This can be directly attributed to increased enrollment, increased staffing, building schools, and increased overhead costs that are associated with growth.
  • The red bars show the number of new students each year and the blue line shows the total number of employees each year. They are obviously positively correlated with each other.
  • To simplify this perfect storm, I’ll use 4 data points and 1 chart to illustrate our current state of district finances. (Click and Read Slide)Dunlap Schools has not had to navigate these kinds of financial waters before. What we hoped would be a simple downturn for a few years in our funding has turned into a trend. With costs increasing at an average of 8% and additional anticipated funding at less than 1%, we’ll need to make some decisions to mitigate the situation. For the last several months, we’ve been working with our administrative team to determine how to preserve our educational program while seeking ways to reduce expenditures and increase revenues. Although tough decisions will need to be made in the coming months, I felt it imperative to provide you with enough information to understand the circumstances and some potential changes in the coming year. Effective organizations are honest with their employees. They communicate with their staff and stakeholders; when the news is good and positive AND when the news is challenging and uncertain. There shouldn’t be any surprises.Trust is built when people feel they get accurate information and understand how challenges will be dealt with.We are all in this together and we’ll adhere to our values and beliefs as respond to our current financial situation.
  • Transcript

    • 1. Purpose of Levy Information  Share Financial Outlook of the District  Share Levy Information  Receive public comment
    • 2. Revenue Sources
    • 3. Expenses by Object
    • 4. Education Fund Expenditures; Per Year % Change 16.0% 14.0% 12.8% 12.0% 10.8% 11.2% 10.1% 10.0% 8.2% 8.0% 6.0% 4.7% 4.0% 5.3% 5.1% 4.6% 2.0% 0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013
    • 5. FY 12 Instructional Costs/Pupil 4799 4161 4249 5778 5531 5554 5312 5046 5260 6721 6376 6580 6236 8270
    • 6. FY 12 Operational Expenses/Pupil 10659 10711 10806 9215 8700 8763 8888 8947 8970 8995 8164 8471 12904 12929
    • 7. Per Pupil Expenditure Comparison $12,000 $11,000 Dunlap Brim $10,000 Farm Elm $9,000 IVC Pville IB $8,000 Lime HS Heights $7,000 150 $6,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
    • 8. Increased Student Enrollment Vs. Total Employees 600 562 484 500 434 389 400 300 348 245 250 200 100 264 04 145 167 142 170 119 108 86 03 322 242 157 95 270 313 292 0 05 06 07 Increased Enrollment 08 09 10 11 Total Employees 12 13
    • 9. % EAV Increase 16.00% 13.41% 14.00% 13.29% 12.35% 12.00% 10.00% 11.15% 12.02% 11.66% 11.91% 11.79% 11.56% 11.54% 11.24% 8.00% 6.00% 4.00% 5.53% 3.57% 1.50% 2.00% 1.30% 0.00% 0.07%
    • 10. Trend Data Model 03 04 05 06 07 08 09 10 11 Employees Enrollment Cost Per Pupil EAV 12 13
    • 11. The 2013 Levy  In order to maintain the tax rate over the past three years, the board has:  Used fund reserves in FY 13 and 14 to help pay IMRF, Social Security, and Medicare.  Used fund reserves in FY 14 to help mitigate the Ed Fund deficit.  In order to meet the financial obligations of the district the tax rate has been increased to 4.49% in the proposed 2013 levy.
    • 12. 2013 Levy to be Filed 2013 EAV Maximum $808,919,581 Tax Rate: Education Fund Operations & Maintenance Transportation Working Cash 2.70% 0.48% 0.20% 0.05% Municipal Retirement Social Security Fire Prevention & Safety * 0.05% Tort Immunity Special Education Leasing 0.04% 0.05% Extension/Levy Bond and Interest: Total Extension/Levy Individual Fund Estimated Maximum Extension: Individual Fund Estimated Maximum Balloon % Extension: input: Levy Amount: $21,840,828.68 $3,842,368.01 $1,617,839.16 $404,459.79 Input in Manual Override Input in Manual Override $404,459.79 Input in Manual Override $323,567.83 $404,459.79 $21,840,828.68 $3,842,368.01 $1,617,839.16 $404,459.79 3.00% 2.00% 2.00% 2.00% $22,496,054.00 $3,919,215.00 $1,650,196.00 $412,549.00 $680,703 0.00% $680,703.00 $841,787 $0 0.00% 0.00% $841,787.00 $0.00 $585,000 $323,567.83 $404,459.79 0.00% 3.00% 2.00% $585,000.00 $333,275.00 $412,549.00 $28,837,983.05 $30,541,013.26 Total Levy $0.00 $31,331,328.00 $5,817,878.00 $37,149,206.00 Tax Rate 4.4947
    • 13. Facts Contributing to the Tax Rate Increase  Student enrollment has increased 9% over the past 3     years. EAV has only increased 4.94% in the past 3 years. Hickory Grove Elementary School was opened. Staff has increased to accommodate increased student enrollment, maintain class sizes, bring special Education in-house, open the new school, and implement new educational programs. Bonds were sold to build an addition at the high school.
    • 14. Funds with a Tax Rate Increase  Debt Services  Bonds sold to build new addition to the high School to accommodate growth.  IMRF/Social Security/Medicare  Increased costs due to additional staff members and increased rates.  No longer have adequate fund reserves to help pay these expenses.  Tort  Increased insurance costs and playground supervisors  Leasing  Technology and modular classrooms
    • 15. 2013 Levy Extension  The Tax Rate in the 2013 levy is 4.49%.  Prevents tax rate from going above 4.49% even if the EAV decreases below the estimated 1.5%  Estimated annual increase of $36.00 for property with a value of $100,000  The tax rate extension (below) represents a ballooned amount, to ensure we receive all of our tax money if the EAV increases at a rate higher than the estimated 1.5%  If the EAV increases, the tax rate will still remain at 4.49%  The proposed corporate and special purpose property taxes to be levied for 2013 are $31,331,328 or an 8.9% increase over the previous year.  The estimated property taxes to be levied for debt service and public building commission leases for 2013 are $5,817,878 or a 29% increase over the previous year.  The estimated total property taxes to be levied for 2013 are $37,149,206 or an 11.7% increase over the previous year.
    • 16. 2013 Levy to be Filed 2013 EAV Maximum $808,919,581 Tax Rate: Education Fund Operations & Maintenance Transportation Working Cash 2.70% 0.48% 0.20% 0.05% Municipal Retirement Social Security Fire Prevention & Safety * 0.05% Tort Immunity Special Education Leasing 0.04% 0.05% Extension/Levy Bond and Interest: Total Extension/Levy Individual Fund Estimated Maximum Extension: Individual Fund Estimated Maximum Balloon % Extension: input: Levy Amount: $21,840,828.68 $3,842,368.01 $1,617,839.16 $404,459.79 Input in Manual Override Input in Manual Override $404,459.79 Input in Manual Override $323,567.83 $404,459.79 $21,840,828.68 $3,842,368.01 $1,617,839.16 $404,459.79 3.00% 2.00% 2.00% 2.00% $22,496,054.00 $3,919,215.00 $1,650,196.00 $412,549.00 $680,703 0.00% $680,703.00 $841,787 $0 0.00% 0.00% $841,787.00 $0.00 $585,000 $323,567.83 $404,459.79 0.00% 3.00% 2.00% $585,000.00 $333,275.00 $412,549.00 $28,837,983.05 $30,541,013.26 Total Levy $0.00 $31,331,328.00 $5,817,878.00 $37,149,206.00 Tax Rate 4.4947
    • 17. FY 15 Budget and the Levy  Even with the proposed Levy, the Ed Fund is projected to have a $2.1 million deficit for FY 15.  The Ed Fund deficit is based on the following assumptions:     1.5% increase in EAV Increased Lease Levy to help fund technology Salaries were rolled according to the July 2013 TA with the DEA All other budget line items rolled at the current FY 14 budget levels
    • 18. Mitigating the $2.1 Million Deficit  The board has spent much time over the past year considering how to address the projected deficit  Last week the board reviewed $2.6 million dollars in cuts and enhancements in the Ed Fund  The Board directed administration to come back this week with cuts between $1.8 and $2.1 Million  Earlier this evening the administration shared a plan that contained $1.9 Million dollars in cuts and revenue enhancements
    • 19. Highlights of Revenue Enhancements Fees Student Fee Increase ($25) Revenue $90,000 DHS Parking Fee Increase ($25) $15,000 Lunch Fee Increase ($.25) $72,307 Milk Fee Increase ($.15) $9,400 Total $186,707
    • 20. Highlights of Cuts and Reductions Reduction Building Replacement Textbooks Supplies 50% $150,000 Based upon enrollment $35,750 5% District Textbook Adoption Savings $46,420 DO Purchase Services $14,530 Elimination of Library Supplies $16,750 Professional Development 66% $90,450 Salaries for Instructional Improvement (mentors/curriculum work) 14% $7,500 Subtotal $ 361,400
    • 21. Additional Cuts  The additional $1,338,050 in cuts directly affect staff and salaries  Per open meetings act, these items were discussed in closed session at the finance committee because they affect the employment and compensation of specific employees
    • 22. Summary; Addressing the $2.1Million Deficit  $186,707 (Revenue Enhancements)  $361,400 (Expenditure Reductions; non-staff )  $1,338,050 (Expenditure Reductions; staff ) $1,886,157 (Total Cuts & Revenue Enhancements)  + $213,843 ($ From Reserves)  $2,100,000 (Addressing the $2.1 million deficit)
    • 23. Public Comment

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