OCONOMOWOC

AREA SCHOOL

DISTRICT

2018-19 BUDGET

PROPOSAL

MAY 1, 2018

RECOGNITION & APPRECIATION FOR COLLABORATIVE EFFORTS

School Board

Cabinet

Administrative Team

Accounting Manager

Department Administrators

Principals

Benefits Task Force

Educator’s Compensation Committee

Employee Handbook Committees

Technology Task Foce

Administrative Assistants

Associated Benefits & Risk Consulting

R&R Insurance

Transparency in the budget development process was supported through collaborative efforts and input.

BUDGET OVERVIEWSNAPSHOT OF 2018-19 BUDGET ASSUMPTIONS

OHS CAPPS Hackathon – 10/20/2017OHS DECA at Rotary – 01/30/2018

STRATEGIC DIRECTIONS –

Continuous Improvement in Academic Performance

Innovative Instructional Programs

Creating a Great Workplace with Highly Engaged Employees

High Quality Facilities with 21st Century Learning Environments

Respecting the Diversity Among People and Cultures

–

Trend Factor Budget Impact

Student

Enrollment

Decreasing FTE count .4%. This is a conservative enrollment estimate

that assumes a decrease of 20 students (5,486 to 5,466). The 'three-year-

rolling-average' membership increases by 39 students to 5,560.

Mill Rate

Increasing 1.8%. An increase of 3% was used to estimate OASD's

equalized tax base. OASD's tax base has grown each of the past four

years at 5.7%, 3.0%, 3.1% and 4.5% which is growth above the State

average. Tax base growth helps to offset the increased tax levy.

Open

Enrollment

Net expense increase. Open enrollment estimate assumes an increase

for net open enrollment out of an additional $199,000. The overall open

enrollment net out expense is $2.78M.

Student Fees

No Change. The Board approved student fees consistent with 2017-18.

The Chromebook insurance fee was reduced. A new fee was added for

the football program to support equipment re-conditioning and player

safety. See detailed scheduled in Addendum. Note: Course and

consumable fees may be adjusted based on actual product costs.

Bond Rating Holding at Aa2 as of March 2018. This is a favorable rating.

Fund Balance No Change. The budget proposal is balanced with expenditures equal to

revenues.

-

Trend Factor Budget Impact

General Fund

Revenues

Increasing 1.83%. Revenues will increase primarily as a result of the

'three-year rolling average' and higher Per Pupil Categorical Aid rate.

State

Equalization

Aid

Decreasing 15%. A 'worst case' yet realistic scenario is a 15% loss in Aid.

This change was anticipated due to the impact of higher debt service

costs related to the 2016 referendum. Decreasing aid puts greater

pressure on the local property tax in the State-Local funding partnership.

Property Tax

Levy

Increasing 4.85%. Five factors contribute to this change: (1) 'three-year

rolling average' enrollment growth, (2) modest expenditure increases,

(3) no revenue limit authority change, (4) the State aid assumption, and

(5) increased debt service resulting from the successful 2016 referendum.

-

Trend Factor Budget Impact

General Fund

Expenditures

Increasing 1.83%. A majority of the District's expenditures increase

annually. Compensation, benefits, utilities, insurance, and

transportation are driven by increased enrollment and inflation.

Resources were reallocated and budget reserves were eliminated to

fund OASD's current year operational needs.

Staffing Level

(Overall)

Increasing 5.27 FTE for all staffing categories. Staffing levels are driven by

class size guidelines, enrollment growth, program selection at OHS, and

contingency planning. Various staffing shifts and natural attrition are

used to match OASD's staffing plan with enrollment needs.

Wages &

Salaries

3-3.3% compensation pool. A 'pool' of funds equal to 3.0-3.3% of base

wages for each employee group was created to provide salary increases,

including steps, stipends, and promotions where applicable, for staff.

Health,

Dental,

Vision

Insurance

Varied by benefit. Health insurance is budgeted at a 5% increase due to

the unfavorable loss-claim ratio and high cost claims. A 0% change is

budgeted for dental, vision, and LTD insurances due to locked in

renewals.

FINANCIAL SUMMARY – BALANCED BUDGET

General Fund Summary 2014-15 2015-16 2016-17 2017-18 2018-19 $ Change Percent

Actual Actual Actual Budget Budget Budget Budget

Beginning Fund Balance 12,254,170 14,075,889 16,033,544 18,499,923 18,499,923 - 0.00%

Revenues:

Local 43,949,198 45,751,468 45,853,058 44,960,144 47,272,342 2,312,198 5.14%

State & Interdistrict 12,151,488 11,727,279 13,612,822 16,417,913 15,957,266 (460,647) -2.81%

Federal & Other 975,001 1,721,653 1,606,084 1,781,943 1,085,392 (696,551) -39.09%

Land Sales - -

Total Revenues 57,075,687 59,200,400 61,071,964 63,160,000 64,315,000 1,155,000 1.83%

Expenditures:

Instruction 25,961,719 26,012,428 27,005,538 28,845,014 29,885,244 1,040,230 3.61%

Support Services 20,425,883 21,882,727 21,411,830 23,345,528 22,813,691 (531,837) -2.28%Transfers to Other Funds &

Other Non-program

Transactions 8,866,366 9,347,590 10,188,217 10,969,458 11,616,065 646,607 5.89%

Total Expenditures 55,253,968 57,242,745 58,605,585 63,160,000 64,315,000 1,155,000 1.83%

Ending Fund Balance 14,075,889 16,033,544 18,499,923 18,499,923 18,499,923 - 0.00%

REVENUEREVENUE LIMIT, EQUALIZATION AID, SUMMARY, DRIVING FACTORS

Greenland Snowy Recess Meadow View Halloween Celebration

GENERAL FUND REVENUE –

The Revenue Limit Formula is the critical first step in the OASD budget development process.

The Revenue Limit functions as a control on the combined amount of property taxes and general State aid available to operate the District.

The difference between the District’s revenue limit and its general aid amount determines the maximum amount of tax levy revenue OASD is allowed to raise.

The inverse relationship between state aid and property taxes is represented graphically on a later slide.

REVENUE LIMIT AUTHORITY

Resident Membership

(FTE)$ per pupil

One-time

(Non-recurring) exemptions

On-going

(Recurring) exemptions

Total Revenue Limit Authority

5,560 $10,117 $0Hold

All Others $260,918

$100,000 $56,613,495

89%

FUNDING PARTNERSHIP –

OASD GENERAL FUND REVENUE

Revenues

• $64,315,000

Change over 2017-18

• Increase of $1.16M or 1.83%

Revenue Limit Calculation – 89% of Revenues

• Total of previous year’s State Aid and Property Taxes

• ‘Three (3) year rolling average’ student enrollment

• Inflationary index on per-pupil basis

OASD GENERAL FUND REVENUE –

EQUALIZATION AID

• Reduce reliance upon the local property tax as a source of revenue for educational programs

• Guarantee a basic educational opportunity is available to all pupils regardless of the local fiscal capacity of the district in which they reside

What is it?

• Membership (enrollment)

• Shared Costs – OASD’s shared costs continue to be above the State average

• Equalized Property Values – OASD’s property value per member, at $902,657 is higher than most districts

What Factors Influence it?

EQUALIZATION AID –

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

♦ District

■ State Ave

District Shared Cost Per Member Compared to Secondary

Ceiling

Equalized Property

Value per Member

Shared Cost per

Member

EQUALIZATION AID –

OASD is considered property

‘rich’ and therefore is penalized

at the tertiary aid level.

EQUALIZATION AID –

REVENUE LIMIT COMPOSITION

Note: Historical average represents the most recent past 5 years.

GENERAL FUND REVENUE SUMMARY

• Revenue Limit provides no change in the per-pupil amount$0• Budgeted increase in the Per-Pupil Categorical Aid

• Generates $1.1M in additional revenue$204• Anticipated student headcount change

• Anticipated ‘3 year rolling average’ growth-20 and +39

• Minimal change in open enrollment-inStable

• 1.83% Revenue growth over the 2017-18 budget$1.16M

EXPENDITURES - PERSONNELOVERVIEW OF STAFFING SUMMARY, STAFF CHANGES, EMPLOYEE BENEFITS

FFA

Farm

Day

OHS

Robotics

GENERAL FUND EXPENDITURES –

2018-19 Budget Investments:

Certified staff promotions and raises $658,000

Certified staff net new/additional FTE (including contingency FTE) $354,000

Administrative assistants, administrators, coordinators, custodians, managers, non-

union support, and paraprofessionals - steps, stipends, and raises$305,000

Increases (rates and/or covered lives) for health insurance, dental insurance, life

insurance, pension, 403(b), FICA, & medicare$300,000

WRS rate increase and adding benefit for non-certified staff $247,000

Transfer to Special Education Fund related to teacher salary and benefit increases and

teacher/support staff FTE changes to support program needs$240,000

Additional FTE to support new/expanded facilities at OHS East Campus and Ixonia $175,000

Personnel changes to support various student needs: learning, medical, special

education, and supervision$159,000

Increase funding of the Technology Plan to expand the 1:1 student-to-device ratio

(currently in Grades 7 -12) to Grades 4 - 6$105,000

Elimination/reduction of prior year spending and reserves: OHS renovation,

construction permit, unused personnel contingencies, non-continuing personnel

stipends, lease expense, professional/purchased services, property insurance, and

retiree benefits, etc.

-$1,377,000

TOTAL $1,166,000

EXPENDITURES –

Health, Dental, Vision, and LTD Insurance Renewals

Compensation increases ‘pool’Educator Compensation Model

Vehicle ReplacementCapital Projects

Technology Lease

Retirement BenefitsTransportation Contract

Transparent Budget Development

EXPENDITURES –

2018-19 Budget

Salaries 28,763,518

Transfer to Special Ed 6,261,333

Health Insurance 5,867,944

Open Enrollment 3,965,000

FICA 2,170,045

Transportation 2,101,967

WRS 1,674,097

Purchased Services 1,417,224

Supplies 1,127,516

Alternative Benefit 979,840

Leases 917,068

Professional Services 872,732

Transfer to Debt Service 804,058

Equipment 716,995

Private Pension Plan 597,747

Grand Total 58,237,085

% of Budget ($64.3M) 91%

TO

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15

EX

PEN

DIT

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STAFFING SUMMARY

Staff Category 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

#

Change

%

Change

Teachers 337.92 342.39 351.93 358.08 360.31 368.88 374.25 377.59 3.34 0.89%

Administrators 20.00 19.00 20.00 21.00 25.00 25.00 25.00 25.00 - 0.00%

Sub-Total 357.92 361.39 371.93 379.08 385.31 393.88 399.25 402.59 3.34 0.84%

Managers 6.50 6.00 6.00 7.00 5.00 6.00 5.00 5.00 - 0.00%

Paraprofessionals 82.40 86.93 84.37 87.30 88.15 89.48 96.47 96.68 0.21 0.22%

Admin. Assistants 26.52 25.52 27.95 27.95 29.33 26.68 26.77 27.90 1.13 4.22%

Custodians 43.11 47.56 47.76 46.24 46.24 46.21 47.29 49.32 2.03 4.29%

Technology Staff 3.00 3.00 3.00 4.00 4.00 5.00 5.44 5.00 (0.44) -8.09%

Other 2.71 5.52 8.23 8.63 9.27 8.88 9.83 8.83 (1.00) -10.17%

Support Sub-Total 164.24 174.53 177.31 181.12 181.99 182.25 190.80 192.73 1.93 1.01%

Grand Total 522.16 535.92 549.24 560.20 567.30 576.13 590.05 595.32 5.27 0.89%

17-18 to 18-19

STAFFING FTE CHANGES WORKSHEET

Staffing Plan

CLASS SIZE AVERAGES

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

4K 5K 1st 2nd 3rd 4th 5th 6th 7th 8th 9th-12th

# o

f S

tud

en

ts

2018-19 Class Size Averages - Projections

Class Size Average 2018-19 Board Target Board Maximum

STAFFING RATIOS

SALARIES & WAGES

3% Compensation Pool

Annual Wage Benchmarking

Median 75th Percentile

OASD

EMPLOYEE BENEFITS

EMPLOYEE BENEFIT COSTS –

Health Insurance Renewal5%• Initial WPS Arise renewal at 25%, Bidding plan resulted in a 7.5% with new carrier (WCA Group Trust)

• Wider network provider

• Dual choice plan: traditional design and high deductible with an HSA component

Dental, Vision, LTD Insurance Renewals0%• Dental: Initial renewal at 0%;

• Vision: 4 year contract at 0%; LTD: 2 year contract at 0%

Wisconsin Retirement System (WRS)1.5% +$• Rate changes annual on January 1st - used historical trend

• Board to consider implementation for eligible support staff

403(b) and Private Pension Plan0%• 403(b) remains a $600 match for eligible employees

• Employer contribution amount at the 15 year amortization rate – no change in participation (although likely with potential WRS change)

EXPENDITURES – NON-PERSONNELTRANSPORTATION, TECHNOLOGY, BUILDINGS & GROUNDS, DEBT

Ixonia Students & Ukuleles Nature Hill Forensics Team 1st Place

NON-PERSONNEL EXPENDITURES –

Total Transportation and Fuel Costs 2008-09 to Present

NON-PERSONNEL COSTS -

NON-PERSONNEL EXPENDITURES –

OTHER FUNDS –

$1.8M

Savings

$818,000

Savings

$159,000

Savings

$88,135,000 Outstanding

Principal Interest Principal Interest Total Principal Total Interest Total Debt

2018-19 3,000,000$ 1,020,154$ 1,715,000$ 1,816,415$ 4,715,000$ 2,836,569$ 7,551,569$ 83,420,000$

2019-20 3,090,000$ 902,354$ 1,495,000$ 1,819,481$ 4,585,000$ 2,721,835$ 7,306,835$ 78,835,000$

2020-21 3,185,000$ 840,554$ 1,845,000$ 1,774,631$ 5,030,000$ 2,615,185$ 7,645,185$ 73,805,000$

2021-22 3,940,000$ 684,754$ 975,000$ 1,719,281$ 4,915,000$ 2,404,035$ 7,319,035$ 68,890,000$

2022-23 4,025,000$ 596,391$ 1,025,000$ 1,680,281$ 5,050,000$ 2,276,672$ 7,326,672$ 63,840,000$

2023-24 4,115,000$ 501,188$ 1,080,000$ 1,639,281$ 5,195,000$ 2,140,469$ 7,335,469$ 58,645,000$

2024-25 4,225,000$ 388,625$ 1,135,000$ 1,596,081$ 5,360,000$ 1,984,706$ 7,344,706$ 53,285,000$

2025-26 4,225,000$ 262,500$ 1,315,000$ 1,550,681$ 5,540,000$ 1,813,181$ 7,353,181$ 47,745,000$

2026-27 4,525,000$ 135,750$ 1,210,000$ 1,484,931$ 5,735,000$ 1,620,681$ 7,355,681$ 42,010,000$

2027-28 -$ -$ 3,675,000$ 1,424,431$ 3,675,000$ 1,424,431$ 5,099,431$ 38,335,000$

2028-29 -$ -$ 3,825,000$ 1,281,581$ 3,825,000$ 1,281,581$ 5,106,581$ 34,510,000$

2029-30 -$ -$ 3,955,000$ 1,132,531$ 3,955,000$ 1,132,531$ 5,087,531$ 30,555,000$

2030-31 -$ -$ 4,080,000$ 1,013,881$ 4,080,000$ 1,013,881$ 5,093,881$ 26,475,000$

2031-32 -$ -$ 4,205,000$ 889,641$ 4,205,000$ 889,641$ 5,094,641$ 22,270,000$

2032-33 -$ -$ 4,345,000$ 754,873$ 4,345,000$ 754,873$ 5,099,873$ 17,925,000$

2033-34 -$ -$ 4,500,000$ 613,563$ 4,500,000$ 613,563$ 5,113,563$ 13,425,000$

2034-35 -$ -$ 4,645,000$ 460,463$ 4,645,000$ 460,463$ 5,105,463$ 8,780,000$

2035-36 -$ -$ 4,820,000$ 301,528$ 4,820,000$ 301,528$ 5,121,528$ 3,960,000$

2036-37 -$ -$ 1,945,000$ 135,648$ 1,945,000$ 135,648$ 2,080,648$ 2,015,000$

2037-38 -$ -$ 2,015,000$ 69,518$ 2,015,000$ 69,518$ 2,084,518$ -$

34,330,000$ 5,332,269$ 53,805,000$ 23,158,718$ 88,135,000$ 28,490,987$ 116,625,987$

2016 Referendum Debt

OTHER FUNDS –

PROPERTY TAXESSUMMARY: PROPERTY TAX LEVY, MILL RATE, & PROPERTY TAX BILL IMPACT

Student fans supporting OHS girls’

volleyball – Sectional Match

Student fans supporting OHS girls’

volleyball – State Match

PROPERTY TAX COMPONENTS

Total School-Based Tax

Levy

Revenue Limit Tax Levy

Referendum Approved Debt Levy

(Fund 39)

Community Service Tax Levy

(Fund 80)

Prior Year Levy Chargeback

and Other$46,134,438Fund 10

$0Fund 38

$0Fund 41

$7,429,509 $562,000

$1,000Chgbck

$0Other$54,126,947

PROPERTY TAXES

Property Tax Levy Summary: Actual Actual Actual Actual Actual Actual Budget Budget Budget

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Change Percent

General Fund 44,848,937 42,800,389 42,979,614 44,660,173 44,650,364 43,838,928 46,135,438 2,296,510 5.24%

Debt Service Fund 39 4,896,000 4,898,263 4,898,138 4,898,547 4,898,547 7,221,733 7,429,509 207,776 2.88%

Community Service Fund 80 562,000 562,000 562,000 562,000 562,000 562,000 562,000 - 0.00%

Total Levy 50,306,937 48,260,652 48,439,752 50,120,720 50,110,911 51,622,661 54,126,947 2,504,286 4.85%

Equalized Tax Base 4,586,116,852 4,575,875,100 4,836,984,968 4,983,333,039 5,135,349,688 5,365,617,568 5,526,586,095 160,968,527 3.00%

Equalized Tax Rate Per $1000 10.969 10.547 10.014 10.058 9.758 9.621 9.794 0.173 1.80%

The tax rate is anticipated to increase each year with the expected loss of State Equalization Aid and increased debt service obligations.

2018-19 Tax Rate is still lower than 2012-13 level.

MILL RATE –

Total School-Based Tax Levy

Equalized Property Value

$1,000 Mill Rate

$54,126,947 $5,526,586,095$9.79

MILL RATE – HISTORICAL TREND

$9.79 Budget Estimate 2018-19

PROPERTY TAXES:

IMPACT ON PROPERTY TAXES –

Impact on Property Taxes for various home values:

Actual 2017-18 Budget 2018-19

Home Value 9.621 9.794 Increase

$250,000 - average home value 2,405.25$ 2,448.48$ 43.23$

$350,000 3,367.35$ 3,427.87$ 60.52$

$600,000 5,772.61$ 5,876.35$ 103.75$

$1,000,000 9,621.01$ 9,793.92$ 172.91$

Equalized Tax Rate per $1000

CONCLUSION

May Budget Proposal

• Early estimate of the District’s financial plan for 2018-19 based upon our best estimates at the time of development.

The State’s 2017-19 Budget determines:

• Per pupil change in revenue limit authority

• Categorical aid

• Other State aid funding

• Open enrollment per pupil amount

November Budget & Tax Levy Adoption

• Key variables will be finalized over the summer and early fall:

• Equalization Aid

• Property Values

• Student Enrollment

Questions?