1

2012-13 Budget Hearing and Annual Meeting

Monday, August 20, 2012

2

Vision Statement

• Focusing on high academic excellence, Parkview School District will provide a safe environment, within quality facilities, where students reach their full potential and become productive citizens.

3

Mission Statement

• The Parkview School District, in partnership with family and community, will graduate individuals equipped to be responsible, productive citizens in our changing world by providing quality instruction and a progressive curriculum in a secure and challenging environment which will motivate all students to achieve their greatest potential.

4

Notes on the Budget

• By law, Parkview School District uses the Wisconsin Uniform Financial Accounting Requirements (WUFAR) for budgeting

• The 2012-13 Budget for the Parkview School District is an estimate– The budget presented today may change between now and Nov. 1st

when the final levy is set– Events that could change the final numbers

• 3rd Friday pupil count in September• Final Equalization Aid numbers from DPI• 2011-12 audit

• The Parkview School District will continue to update information as it becomes available to us

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Important Dates

• 2011-12 Financial Audit – July 1, 2012 until the end of the calendar year as the auditors work on their final reports

• September 17th – first aid payment from the state (15% of total)

• September 21st – 3rd Friday pupil count• October 15th – General Aid certification from DPI• November 1st – deadline for adopting the “original”

budget and setting the levy amount

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Comparative Cost per Member

• Comparative Cost per Member is total costs divided by the number of students in the district

• While revenue sources have either declined or remained stagnate, costs have continued to rise leading to necessary budget cuts 1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11 $7,000.00

$8,000.00

$9,000.00

$10,000.00

$11,000.00

$12,000.00

$13,000.00

Comperative Cost per Member

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Membership Countand Enrollment

• Membership count is one of the most important numbers for a school district because it will impact your revenue limit and equalization aid

• Due to Parkview’s declining enrollment, the revenue limit for the district has been decreasing over the last few years

• In addition, reductions made to the allowable per pupil change have limited the amount of money a district is able to receive1990-91

1992-93

1994-95

1996-97

1998-99

2000-01

2002-03

2004-05

2006-07

2008-09

2010-11

2012-13800

900

1000

1100

1200

1300

Parkview FTE History

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Mill Rate

• Mill rate is a number used to equate the amount of taxes that will be assessed on a property that has a certain evaluation

• For example, a mill rate of $9.88 would mean that a property evaluated at $100,000 would pay $988 in taxes for the school district

• It is important to note that the mill rate is an average for multiple municipalities and an individual’s actual mill rate could vary

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13 $7.00

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

Mill Rate History

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Expenses by Object

• This pie chart provides a breakdown of Parkview’s expenses for Fund 10

• In the past, salaries and benefits typically accounted for about 72% of expenses

• However, due to benefit changes and staff reductions, that number has been reduced to about 66%

Salaries46%

Employee Benefits20%

Purchased Services16%

Non-Cap-tial Ob-jects4%

Capi-tal Ob-

jects1%

Debt Re-tire

ment1%

In-suran

ce and

Judgements

1%

Operating Transfers10%

Other Objects1%

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General Aid Worksheet

• Estimated aid amount as of July 20, 2012

• Provides an estimate of General Aid received from the state

PART H: 2012-13 JULY 1 ESTIMATED EQUALIZATION AIDH1 2012-13 EQUALIZATION AID ELIGIBILITY (G5+G10+G15) NOT< 0 5,894,779.00H2 PARENTAL CHOICE DEDUCT, EQUALIZATION AID (MILWAUKEE & RACINE ONLY) 0.00

H2A PAYMENT TO MILWAUKEE SCHOOL DISTRICT FROM CITY OF MILWAUKEE 0.00H3 MILWAUKEE CHARTER PGM DEDUCT, EQUALIZATION AID (H1 * -.0144800810) -85,357.00H4 2011-12 OCT-TO-FINAL ADJUSTMENT, EQUALIZATION AID 137.00H5 PRIOR YEAR DATA ERROR ADJUSTMENT 0H6 2012-13 EQUALIZATION AID JULY 1 ESTIMATE (ROUND) (H1+H2+H3+H4+H5) 5,809,559

I1 2012-13 SPECIAL ADJUSTMENT/CHAPTER 220 AID ELIGIBILITY 0.00I2 A. PARENTAL CHOICE DEDUCT, SPEC ADJ/CHAPTER 220 AID (MILWAUKEE & RACINE) 0.00I2 B. MILWAUKEE CHARTER DEDUCT, SPEC ADJ/CHAPTER 220 AID (I1 * -.0144800810) 0.00I2 C. 2011-12 OCT-TO-FINAL ADJUSTMENT, SPEC ADJ/CHAPTER 220 AID -137.00

I3 12-13 SPEC ADJ/CHAPTER 220 JULY 1 ESTIMATE (ROUND) (I1+I2A+I2B+I2C) -137.00I4 2011-12 OCT-TO-FINAL ADJUSTMENT, CHOICE/CHARTER DEDUCTION 0.00

I5A JULY 1 ESTIMATED 2012-13 GEN AID SUBTOTAL (H6+I3+I4) 5,809,422.00I5B 2011-12 OCT-TO-FINAL ADJUSTMENT, ACT 28 ADJ 0.00

*I5 2012-13 JULY 1 ESTIMATE GEN AID (I5A+I5B) 5,809,422

*** PART I: 2012-13 JULY 1 ESTIMATED GENERAL AID ***

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Revenue Limit Worksheet

• Line 11 – Revenue Limit• Line 12A – Estimated

General Aid• Line 19 – All Fund Tax

Levy and Mill Rate• Sheet used to calculate

the district’s allowable revenue limit each year

11. 2012-13 Revenue Limit With All Exemptions (Ln 9 + Ln 10) 9,645,26212. Total Aid to be Used in Computation (12A + 12B) 5,809,422A. July 1 2012-13 General Aid ESTIMATE 5,809,422B. State Aid to High Poverty Districts (not all dists) Source 628 0

13. Allowable Limited Revenue: (Line 11 - Line 12) 3,835,840 (10, 38, 41 Levies + Src 691. Src 691 is DOR Computer Aid.)

14. Total Limited Revenue To Be Used (A+B+C) Not >line 13 3,835,840Entries Required Below: Amnts Needed by Purpose and Fund:

A. Gen Operations: Fnd 10 including Src 211 & Src 691 3,650,671 (Proposed Fund 10)

B. Non-Referendum Debt (inside limit) Fnd 38 Src 210 185,169 (to Budget Rpt)

C. Capital Exp, Annual Meeting Approved: Fnd 41 Src 210 0 (to Budget Rpt)

15. Total Revenue from Other Levies (A+B+C+D): 90,000A. Referendum Apprvd Debt (Non Fund 38 Debt-Src 210) 0B. Community Services (Fnd 80 Src 210) 90,000 (to Budget Rpt)

C. Prior Year Levy Chargeback (Src 212) 0 (to Budget Rpt)

D. Other Levy Revenue - Milwaukee & Kenosha Only 0 (to Budget Rpt)

16. Total Levy + Src 691, "Proposed Levy" (Ln 14 + Ln 15) 3,925,84017. Est Src 691 (Comp Aid) Based on Ln 16 & Values Entered (to Budget Rpt) 1,32018. Fnd 10 Src 211 (Ln 14A-Ln 17), 2012-13 Budget 3,649,351

Line 18 ( not 14A) is the Fund 10 Levy certified by the Board.19. Total Fall, 2012 All Fund Tax Levy (14B + 14C + 15 + 18) 3,924,520

Line 19 is the total levy to be apportioned in the PI-401. Levy Rate = 0.0097697420. Fund 30 Src 210 (38 + Non-38) (Ln 14B + Ln 15A) 185,169

REMEMBER TO USE OCT 15 CERT WHEN SETTING THE LEVY.

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Proposed Budget

• Parkview School District is projected to have a shortfall of $275,201.72 for the 2012-13 fiscal year– A reduction in state aid and a decrease in the

revenue limit are the main reasons for the shortfall

– The shortfall will lead to a reduction in the district’s fund balance amount

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Fund Balance

• Fund balance represents the fund’s total assets minus its liabilities

• Fund balance is not a cash account and does not represent how much money a district has in the bank

• Parkview School District is projected to have a fund balance of 22% after this year

Year Fund Balance

2009-10 $2,646,650.65

2010-11 $2,662,425.82

2011-12 $2,642,487.38

2012-13 $2,367,286.66*

* Estimated

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Tax Levy

• The tax levy is based on a variety of numbers and is directly impacted by the amount of aid we get from the state, which we will not know until mid-October

• However, we can use some of the numbers we do have already and make an estimate of what it might be this year

• The chart to the right gives a history of the amount Parkview School District has levied in the past and how much it anticipates this year

Year Tax Levy

2008-09 $3,531,948

2009-10 $3,741,524

2010-11 $4,190,570

2011-12 $3,968,782

2012-13 $3,924,520*

* Estimated amount

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Equalization Aid

• Equalization Aid or General Aid is money that is received from the state

• Recent changes in the state budget have reduced the amount of Equalization Aid given out each year

• Over the past five years, Parkview has been receiving less and less Equalization Aid from the state due to a decrease in overall funds and declining enrollment

Year Eq. Aid

2008-09 $7,656,220

2009-10 $7,343,222

2010-11 $7,004,749

2011-12 $6,305,595

2012-13 $5,809,422*

* Estimated amount

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Revenue Limit

• The revenue limit is the amount that a district is able to collect in revenues from state aid and taxes

• Parkview has seen their revenue limit decline over the past five years due to changes in the state’s budget and declining enrollment

Year Revenue Limit

2008-09 $11,134,341

2009-10 $11,025,831

2010-11 $11,102,556

2011-12 $10,162,211

2012-13 $9,645,262*

* Estimated amount

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Budget Adoption

• The Budget Adoption Summary is a DPI required document that must be completed every year by a school district

• The chart below contains information on the Parkview’s Fund Balance and the revenues and expenditures for the General Fund

GENERAL FUNDBudget

2012-2013

Beginning Fund Balance 2,642,487.38 Ending Fund Balance 2,367,286.66 TOTAL REVENUES & OTHER FINANCING SOURCES 10,385,210.00 TOTAL EXPENDITURES & OTHER FINANCING USES 10,660,410.72

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2012-13 Budget Cuts and Savings

Description Amount

Retirement Savings $200,000

Administrators Paying into Retirement $30,000

Utility Efficiencies $60,000

Eliminate Dean of Students Position $60,000

Health Insurance Savings $200,000

Savings from Closing Newark $170,000

Sale of Newark* $202,500

*Pending voter approval

Total Savings $922,500

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2012-13 Positives

• 2% salary increase for all certified and classified staff to retain high-quality employees

• Reduced maintenance costs from managing only three buildings instead of four

• Reduction in health insurance costs while maintaining quality coverage

• Energy efficiency through Honeywell to lower energy costs

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Contact Information

• Ben Irwin – Business Manager• Email – birwin@email.parkview.k12.wi.us• Phone – 608-879-2717 ext. 6114• Office located in the Parkview High School Office• A copy of this PowerPoint and other budget

information will uploaded to the Parkview School District website under Budget Information, which can be found within the Business Office link