Township High School District # Levy for Fiscal Year

Transcription

1 Township High School District # Levy for Fiscal Year

2 District #113 Vision Mission - Goals Vision Township High School District 113 provides a rigorous, equitable, student-centered education, inspiring excellence and promoting innovation and lifelong learning. Mission Prepare students with the skills, knowledge and resilience to be successful contributors in a changing world. Goals A. Maximize academic achievement and social/emotional growth for all students B. Provide strong, visionary leadership and governance C. Serve as effective financial stewards of district resources D. Foster collaboration within the district and the community

3 2014 Levy Calendar November 10th Finance Committee to review levy Board takes action to determine tax levy Decided at least 20 days prior to hearing date November 20th Publish Truth in Taxation December 8 th Levy hearing and levy approval December 9 th Submit levy to Lake County Clerk

4 Budget Process for the District Gather December 2013 U.S. city average for all Urban Consumers Index (CPI) = 1.5% for FY 16: CPI of 1.7% for FY 15 (current year) Gather new growth data from local assessor s office: This includes potential back taxes Impacts of Property Tax Appeals Project fiscal needs of the district for a 5 year period with PMA Financial Advisors. Calculate annual projections for revenues and expenditures.

5 Willard Rooks Helander Lake County Clerk Values and Rates Changing property values (EAV) do not result in increased or decreased taxes As EAV values go up, tax rates go down & vice versa Districts receive requested levy amounts, unless limits are triggered.

6 Decline in EAV for Moraine (-15.3%) and West Deerfield (-12.4%) are less that many other lake county townships Tax rates increased in the past three years due to declining EAV TWP_ANTIO -15.0% TWP_AVON -21.3% TWP_BENTN -20.2% TWP_CUBA -11.7% TWP_ELA -11.8% TWP_FREMT -13.1% TWP_GRANT -19.5% TWP_LIBVL -9.2% TWP_LKVLA -14.9% TWP_MORRN -15.3% TWP_NWPRT -17.6% TWP_SHLDS -13.1% TWP_VERN -12.1% TWP_WARRN -14.2% TWP_WAUCD -16.6% TWP_WDFLD -12.4% TWP_WKGN -30.6% TWP_ZION -28.7%

7 PTELL Example - Revenue from new construction If Total Operating levy was $ 10,000,000 in 2013 received from local property taxes The CPI of 1.5% will bring in an additional $ 150,000 of new money for 2014 from local property taxes If the NEW construction EAV is $1,000,000 for 2014 Willard Rooks Helander Lake County Clerk With a tax rate of 2.00, additional new local property taxes for 2014 would be $ 20,000 With the NEW construction EAV levy dollars added to the CPI levy dollars the total is $ 170,000 This brings the total local property taxes in at an estimated 1.7% increase from the prior year The New EAV is additional dollars with the theory of new houses bring additional students

8 Revenue Projection Methodology Projection calculations include: Current local taxes (levy related) Grants State Aid Federal Aid Investment earnings Other miscellaneous revenue sources

9 Source of Revenue FY 14 State Sources, $17,406,118.00, 16% Local sources, $4,018, % Investment Earnings, $607,280.00, 0% Federal sources, $2,252,669.00, 2% District-Wide Revenues by Source Property Taxes, $86,266,002.00, 78% Property Taxes Investment Earnings Local sources State Sources Federal sources

10 Revenue and Expense variables for FY 15 and into FY 16 State revenue to schools stay the same Senate Bill 16 is on our radar we will assume it will not pass in our budgeting process for FY16 Federal revenue to schools stay the same Potential changes to Special Education are on our radar Interest income stays the same Student registrations determine FTE (Teachers to be hired for next year). This occurs in May of 2015 for FY 16

11 Source of Expenditure FY14 Interest and Fees, $4,674,613, 4% Pupil Transportation, $4,169,297, 4% Business Operations, $17,771,267, 17% District-Wide Expenses by Function Non Programmed, $158,325, 0% General Adminstration, $11,208,330, 10% Instruction, $64,150,465, 59% Pupil and Support Services, $6,007,552, 6% Community Services, $343,729, 0% Instruction Community Services Pupil and Support Services General Adminstration Business Operations Pupil Transportation Interest and Fees Non Programmed

12 Expenditure Summary Salaries All closed contracts for employees FY 16 contracts are tied to CPI of 1.5% or within CPI range Transportation group will meet and confer this year Assumption for FY16 budgeting that all FTE for the district will be the same and finalized in May Benefits Reviewed annually and are projected to stay the same for Medical and Dental with no increase in expenditure for FY 16 Supplies/Repairs/Maintenance Require slight increase for FY 16 tied to CPI Referendum projects - Capital budget amount is required to have $5.0 M on average per year to support the referendum. FY16 is $ 5.0 M in third year Capital equipment and projects We also have a goal to add $.5 M for needs outside the referendum projects Utilities Depends on volume usage Actual unit costs of Natural Gas should be lower than last year Actual volume use of Natural Gas and Electric should increase in FY 16 due to construction uses during these phases Special Education costs are projected to increase 5-10% ($500K to $1M) Increase in student population with their needs Increase in expenditures for services provided to students Cost increases for out of district residential placements Life Safety Report will be finished and projects can be incorporated into referendum construction for savings with an economy of scale with bidding and savings for mobilization

13 Enrollment Projections DHS HPHS Total Total Delta FY Year Change FY FY FY FY FY Year total Delta 32 Projections are based on sender district data

14 2014 Levy 2013 Fund 2014 Estimated Levy Incr/(Decr) % Final Extension $63,234,932 Educational $65,500,000 $2,265, Operations, Bld & Maint $11,900,000 $860, $11,039,828 $1,727,320 Special Education $1,750,000 $22, $2,741,181 Transportation $2,600,000 ($141,181) $187,752 Fire Prev & Safety $190,000 $2, $150,202 Working Cash $150,000 ($202) $1,426,917 IMRF $1,200,000 ($226,917) $150,202 Tort Immunity $150,000 ($202) $1,464,467 Social Security $1,450,000 ($14,467) $6,646,427 Bond & Interest $6,961,047 $314, $88,769,227 Total $91,851,047 $3,081, $82,122,800 W/O Bond & Interest $84,890,000 $2,767,

15 Non Referendum Bonded Debt Note that the last two columns are for DSEB DSEB or Debt Service Extension Base is the amount one can levy for without a referendum to fulfil needs outside of the tax cap. It is normal and customary to use this resource to purchase bonds to work on life safety issues as we did in Life safety study underway to ensure that required projects to not undo work done as part of referendum projects.

16 Referendum Bonded Debt

17 2014 Levy Assessments are linked proportionally to the tax increase. The tax cap law ensures protection of the taxpayer by limiting the increase in total tax dollars collected by the school. It is limited to the CPI rate or 5%, whichever is lower. If all assessments increase equally, tax bills will increase 1.5% from last year for District 113 s portion. Debt portions are estimated to increase the Levy from $ 176 per $ 100K EAV to $ 185. (An increase of $ 9) We monitor the two TIFs in the district that are set to expire in 2023 and 2025.

18 How does this impact my 2015 tax bill A house valued at $300,000 or $100,000 EAV District 113 taxes are estimated at $2,220 The 2014 total tax increase estimate is $42 An estimated increase of $9 to finance debt An estimated $33 finances the operational increase (1.5% increase which is CPI)

19 Tax Rate History Declining tax rates through 2007 reflects increasing EAV Defined tax rate for District #113. $ per $1,000

20 Tax EAV History Decreasing EAV amounts from 2008 reflects increasing tax rates calculated by the county

21 Our tax rate is favorable compared to other high schools districts

22 EAV Levied vs. Actual Without Bond and Interest Posted levy is always higher than actual because we do not know our final EAV number until the spring

23 Levy Request We are required to make this request prior to the assessors finalizing the EAV calculations. This Levy request of 3.37% (w/o debt) is an estimate and will be finalized by the assessor when their data are collected. This Levy request with Bond and Interest (debt) is 3.47%. New estimated construction values will be determined by the Lake County assessor s office. This is expected to range between 1% - 2.0%. This is not known until April 2015, after the levy is required to be submitted. The CPI of 1.5% will determine the Levy cap to tax payers. The assessor s office mentioned there may be some adjustments and we will not know that until after the levy is submitted.

24 District 113 s Fiscal Responsibility As reported on the state annual financial report: We received a rating of 4.0 out of 4.0 once again. Our fund balance meets state mandates. We continue to work on our financial plan to keep expenditures in line with our revenue streams and ensure allocations of our resources are aligned with our goals.

25 Referendum Capital Projects Currently on time and on budget District has committed $ 25 Million from operating budget based on: Historical capital expenditures being offset by referendum projects Reduction in expenditure on IMRF contributions by using fund balance to offset increased contributions each year New additional EAV revenue produced in the annual levy On average, $ 5 Million each year for 5 years Each year, this allocation increased by $ 500,000 FY 14 = $ 4.0 M FY 15 = $ 4.5 M FY 16 = $ 5.0 M FY 17 = $ 5.5 M FY 18 = $ 6.0 M

26 Fund Balance Facts The state recommends fund balances for schools to be 25-50% FY 14 shows District 113 has an estimated 45% operating fund balance. The drop of 5% from FY13 is mainly related to the IMRF UAAL payment. District 113 will utilize CPI revenue in FY 16 (1.5%) for our expenditure goal in the budget process. Fund balance is used for unforeseen one time expenditures or if changes in revenue or needs occur. A fund balance eliminates the need for short-term borrowing Our fund balance is pivotal for earning a AAA rating from Moody s and Standards & Poor

27 Summary and Conclusion Levy request as a total is 3.37% While salaries are tied to CPI, other factors may be more volatile and put pressure on the budget to be balanced Expense management focuses away from the classroom Financial challenges have increased with two consecutively low CPIs

28 Questions or Comments?