Kimberly Area School District 2010 Annual Meeting Recap

KIMBERLY AREA SCHOOL DISTRICT
2010 ANNUAL MEETING
Monday September 27, 2010
6:30 PM - Budget Hearing
7:00 PM - Annual Meeting
KIMBERLY HIGH SCHOOL
W2662 Kennedy Avenue
Kimberly WI 54136

BUDGET HEARING
Presented by:
Gary Kvasnica
Director of Business Services

BUDGET MESSAGE
THE YEAR IN REVIEW – 2009/10

BUDGET MESSAGE
The Kimberly Area School District
continues to provide our community with
great value
STUDENT
ACHIEVMENT
High Achieving
Low Spending

BUDGET MESSAGE
Compiled by the Wisconsin Tax Payers Alliance
Wisconsin Knowledge and Concepts Exam Results
4th Grade
State Avg 81% 81%
Kimberly 90% 3 92% 2
8th Grade
State Avg. 84% 78%
10th Grade
State
Avg. 77% 71%
Reading Math
*Pct. **Decile *Pct. **Decile
*Pct. - Percentage of students who test advanced or proficient
**Decile - Ranking of 1 through 10 with 1 being the highest

BUDGET MESSAGE
Compiled by the Wisconsin Tax Payers Alliance
DISTRICT PER STUDENT EXPENDITURES 2009-10 BUDGET
Instruction Comparative Exp.
Salary & Pupil Instr. Bldg. Pupil
Capital
Exp/ Total
Name Total Fringe Serv. Supp. Admin. Grds. Trans. Debt Exp. Amt. Decile
K12 District Avg. $ 7,244 $ 6,067 $ 544 $ 617 $ 908 $ 1,152 $ 485 $ 791 $ 12,366 $ 10,465
Kimberly $ 6,472 $ 5,271 $ 464 $ 511 $ 704 $ 968 $ 292 $ 1,115 $ 11,248 $ 9,118 $ 10
Kimberly Vs. State $ (772) $ (796) $ ( 80) $ (106) $ (204) $ (184) $ (193) $ 324 $ (1,118) $ (1,347)
% K12 State Avg. -10.66% -13.12% -14.71% -17.18% -22.47% -15.97% -39.79% 40.96% -9.04% -12.87%

YEAR IN REVIEW - 2009/10
STATE BUDGET SHORTFALL
Cost-of-Living Increase under Revenue
Controls decreased by $75 per student
or approximately $308,000
Less Money to Operate
State aid reduced by approximately
2.5%
Under Revenue Controls
decreases in State Aid result
in increased taxes
Taxes increased by 8.38% in 09/10

YEAR IN REVIEW - 2009/10NEW LABOR LEGISLATION
Qualified Economic Offer (QEO) Eliminated from Teacher Contracts
- Under QEO District could offer a total compensation package
(salary & benefits) of 3.8% without having to go to arbitration
- Helped keep labor costs in line with state imposed revenue controls
Arbitration rules revised
- Ability to pay and local economic conditions no longer given greatest
weight in awarding arbitration decisions

THE YEAR IN REVIEW- 2009/10Increase in Wisconsin Retirement System Contributions
As a result of the economic downturn, investments used to pay
retirement benefits for state employees had a significant decline in value
To make up for losses, the Wisconsin Retirement System increased
required contributions by .6% to 11% of an employee’s salary
Fortunately - District paid off unfounded portion of the Wisconsin
Retirement System liability in 08/09 thereby lessening
the impact of the increase
Additional cost to the District of $234,196

FEDERAL STIMULUS FUNDING
Purpose: Stimulate Economy & Aid Financially Strapped School
Districts
American Recovery and Reinvestment Act
(ARRA)
District received a one-time grant of $946,414 to be used over the
9/10 and 10/11 school years to help implement student
achievement initiatives for our special education students

YEAR IN REVIEW 2009/10
Energy Conservation
The one-time freed up funding was then used to implemented several
energy conservation projects that will help reduce future operating
costs
District funds that would have been used for special education
related costs were reduced because of Federal Stimulus Funding

ENERGY CONSERVATION
Replaced an older boiler at Sunrise with a new energy efficient system
Retrofitted lighting Systems at Sunrise
Implemented additional automated energy controls
Replaced windows at Janssen
Replaced an older boilers at Westside with a new energy
efficient system

Janssen Lunch Room Windows
Befor
e
After

Budget Message
THE YEAR IN REVIEW - 2009/10
OTHER FACILITY
IMPROVEMENTS

WHAT'S NEW IN 2009/10
Westside School Improvements
Final Year of a 3-Year Carpet Replacement Plan
08/09 09/10

Deteriorated Concrete and Asphalt in Front Drive Replaced
Before Afte
r

Janssen Improvements
Replaced original Sinks, Faucets and Water Fountains
Before After

Janssen Improvements
Replaced antiquated Clocks with Automated Clocks
Before After

Sunrise School Improvements
Asphalt in North Playground Milled and Replaced
Before After

Mapleview Improvements
Widened Receiving Room
Door
Before After
Easier more Efficient Egress for Distributing Supplies

Water Line Improvements
Replaced deteriorated Water Main at Middle School
Connected Water Line to the Woodland Field Irrigation System

JRG Middle School Improvements
Before After
Replaced old Locker Room Doors

RE-ROOFED SECTION OVER TECH ED AND ART
ROOM

FACILITIES
The improvements just listed have
been paid for out of Capital
Improvements Fund
Helps insure that Capital Improvements done
when needed
Tax Levy for this Fund is included within
Revenue Limits
Separate Fund that can only be used for Capital
Improvements

THE YEAR IN REVIEW - 2009/10
TECHNOLOGY IMPROVEMENTS
Replaced old Computers at the Middle School
Added Hardware and Software to improve interoperability between
different software products
Replaced Network Switches to increase performance
Installed video projectors at High School and
Middle School to enhance learning
Increased Storage Capacity
Implemented Mobile Computer Lab at Middle
School to enhance learning

Post Retirement Benefits Paid Health & Dental Benefits for certain
staff retiring after age 55
Negotiated as a cost saving measure many years ago
•Cost of Insurance has risen dramatically
Several recent developments have Impacted
•New Accounting Requirements requiring Districts to pre-fund this Liability
The costs of these future retirement benefits will be substantial
To help fund this future liability the District established a Trust in 2002/03
Post Retirement Benefits

09/10 Contributions
Amount in Trust if debt not
included
Post Retirement Benefit Trust
Disbursements
Interest Earned
$2,042,275
$811,93
3
$ 37,777
$3,633,601
CDO Investment Portion of Trust Defaulted in 09/10
There is $4,178,630 in debt is associated with the CDO Investment
Although we are not legally require to repay this debt, it
is
currently accounted for in the Trust
Including debt the Trust has a -$545,029 Fund Balance

Settled Labor Agreements
Para-Professionals Association
Custodial and Maintenance
Association

Continued Health
Insurance Cost
Containment
YEAT IN REVIEW – 2009-10
Our Non-Teaching Staff moved from a Point-of-Service Network
to a Single Provider System (HMO)
The rising cost of health Insurance continues to be a
major concern in this era of revenue controls
Cost of a Family Plan approximately $2,000 less than would have
been under the old plan

Enrollment continued
to Grow
An increase of 45 Full Time Equivalent (4K and 5K
count as .5) in students 09/10 vs. 132 in 08/09
At Slower Rate

WHAT’S NEW IN 2010/11!

BUDGET MESSAGE
WHAT’S NEW IN 2010/11
STUDENT
ACHIEVMENTKimberly High School was recently recognized by Newsweek
Magazine
as one of the Best High Schools in America

America's Best High Schools: The List
Each year, NEWSWEEK picks the best high schools in the country based on how
hard school staffs work to challenge students with advanced-placement college-
level courses and tests. Just over 1,600 schools—only 6 percent of all the public
schools in the U.S.—made the list. This year's rankings have some fantastic new
interactive features. We’ve teamed up with a data company called Factual to create
individual profile pages for each school where students and faculty can comment
and contribute. Check out the profiles by clicking on the name of any school in the
list. And don't miss this photo gallery of the top 20 schools, the list of the public
schools that are too elite for our rankings, a quiz about celebrity nerds, and a
gallery of the 13 best movies about high school. (For more information about how
our rankings are calculated, see our FAQ.)

Wisconsin Schools In Newsweek’s - 2010 Best High
Schools in America
Arrowhead Muskego
Brookfield Central Nathan Hale
Brookfield East New Berlin Eisenhower
Cedarburg New Berlin West
Eau Claire Memorial Nicolet Union
Gibraltar Area Oak Creek
Grafton Pewaukee
Greendale Riverside University
Homestead Waukesha North
Kettle Moraine Waukesha South
Kimberly Waukesha West
Marshfield Wauwatosa East
Middleton West Bend East
Milwaukee School of Languages West Bend West
Mukwonago Westosha Central
Whitefish Bay

CONTINUED STATE BUDGET SHORTFALL
Approximately $650,000 less as a
result of the cost-of-living decrease
under Revenue Controls
Less Money to Operate
Increased taxes Under Revenue Controls less State Aid
results in increased taxes

FEDERAL EDUCATION JOBS BILL
To save and create jobs for financially strained school districts
Signed into law in late August
Kimberly will be receiving $758,168 over a two year period
We will be using approximately $250,000 in 10/11 to recall laid off
para-professionals and hire additional limited term teachers to help
reduce class sizes
The published budget does not include this amount as we not aware of how
to account for this funding before the budget had to be published
The $250,000 will be accounted for when the budget is finalized in October
The additional funding will have no impact on the tax levy

WHAT’S NEW IN 2010/11Increase in Wisconsin Retirement System Contributions
To make up for losses in investments used to pay retirement benefits
The Wisconsin Retirement System has once again increased required
contributions by .6% to 11.6% of an employee’s salary
Additional cost to District of $200,731

FACILITY IMPROVEMENTS

Deteriorated Asphalt in upper playground Replaced
Before After

First Year of a 3-Year Carpet Replacement Plan
Before After

RE-ROOFED SECTION “C” OF BUILDING

Improved Drainage

Theatre upgrade

High School Improvements
Refinished Gym Floor

Resurfaced Football Stadium Track

Energy Conservation
With the Installation of a new heating system
and lighting retrofit at Sunrise Elementary all of
our schools should have above average energy
efficiency
To reduce paper consumption, toner costs and
energy consumption, the District will be implementing
an automated Copier/Print System at the High School
Estimate a 20% reducing in paper consumption
122,505 pages or 8,697 lbs of CO2

TECHNOLOGY IMPROVEMENTS
Installation of various equipment for
wireless computer network to improve
access and enhance learning
Student Response System that will allow teachers
to create interactive real-time student
assessments to improve instruction
Digital Distribution System
for TV/Cable Access at Westside

Settled Labor Agreement
Board ratified our 09-11 Teacher
Contract on September 13, 2010
Provides fair compensation in difficult economic times
Helps reduce future post retirement benefit costs

Health and Wellness
Our Food Service Program will be participating in
the Michele Obama HealthierUS School Challenge
at JR Gerritts Middle School by providing meals
that exceed current federal nutritional standards
All but one of our labor groups have an incentive
to participate in the District’s Wellness Program

Post Retirement CDO Investment and Lawsuit
In District believes it was mislead in its Collateralized Debt Obligation (CD) investment
made in 2006 and has filed a lawsuit along with 4 other Wisconsin School Districts seeking
rescission, damages and attorney fees
The District is not legally obligated to repay this debt
If not settled, we anticipate a court date in 2011 or 2012
In conjunction with investment, the District issued $4,300,000 in asset backed notes (debt)
At the July 12, 2010 Board Meeting, the board elected not to include an appropriation in the
10/11 Budget for the $4,178,000 remaining debt at this time because of our outstanding
lawsuit

Post Retirement CDO Investment and Lawsuit
As a result of Districts action not to repay any of the outstanding debt at this time,
Moody’s Investors Service , a credit rating agency has downgraded the District’s bond
ratting
We don’t anticipate it having any impact on our borrowing costs as we have no immediate
expansion plans and our short-term cash flow borrowing is minimal
Went from Aa2 to Aa3 with a stable outlook
Aa3 is considered high quality

Enrollment
The District projects continued growth at a slower rate

THE FUTURE

THE FUTURE
The District receives a large
percentage of its funding from
the State
State has had difficulty
balancing its Budget over
the past several years
Expected to worsen with recent economic decline and
continued structural imbalances of the budget
District will need to remain diligent to maintain its strong financial
position
It is likely that there will be even more restrictive
revenue controls and further reductions in state aid

Enrollment Growth
THE FUTURE
The District receives significantly less revenue per
student than the state average
Offset in past by the District’s rapid enrollment
growth
As growth and corresponding revenue increases
lessen, we will need to adjust our spending accordingly

THE FUTUREWisconsin Retirement System Contributions
As a result of the recent economic downturn, investments used to pay
retirement benefits for state employees have declined substantially
To make up for these losses, School Districts will need to substantially
increase contributions over the next several years
We need to work with our labor groups to have them
help share the financial burden of these increases

THE FUTURE
Health Insurance
The District, our Labor Unions, Health Care Providers,
Insurance Carriers, State and Federal Government
must all work together to address issues!
Costs continue to rise
Recent National Health Care Legislation is likely to
accelerate cost increases in the short-term

THE FUTURE
Labor Relations
With the elimination of labor cost
controls (QEO) and more restrictive
revenue limits
The District will need to work closely
and creatively with our labor
groups to provide fair compensation
without eroding the quality
of education

THE FUTURE
Energy Costs
Less money will be available to educate
children unless we continue to find ways
to reduce energy consumption
Energy Costs are rising at a faster
rate then our Revenue
The District has been a leader
in Energy Conservation

THE FUTURE CHALLENGE
With further limitations on revenue and
increasing costs
Difficult choices may need to be made
District is currently in good Financial Shape
We will need to prioritize what is most
important

BUDGET MESSAGE
TAX DEFINITIONS
• Tax Levy
• Tax Rate
The amount a homeowner would pay for every $1,000 of
Equalized Property Value
If the Tax Rate were $9.00 per $1000 of Equalized
Valuation and an individuals property had an equalized
value of $100,000 the tax rate would be $900
Total Amount of Tax Revenue to be collected
Assessed Value is the property value as determined by the
individual Municipality
Equalized Value is total Fair Market Value of all properties
within the District. This includes several municipalities.

BUDGET MESSAGE
ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR 2010/11
- 35 Additional Students
- If more Students, Revenue Cap and Tax Levy will increase
• Revenue Limit
• Property Valuation
- Estimated at 0% increase. If higher, Tax Rate will decrease
The above estimates should be finalized in October!
• Equalization (State) Aide reduction
- If more than projected, Tax Levy will increase
• Business Computer Valuation
- If higher than projected, Tax Levy will decrease
- Cost of Living Increase of $200 per student

BUDGET HIGHLIGHTS
TAX LEVY
GENERAL FUND
DEBT SERVICE
CAPITAL IMPROVEMENTS
*COMMUNITY SERVICE
TOTAL
Actual
2009-10
$11,069,298
$4,049,080
$531,000
$31,516
$15,680,894
Budget Dollar Percent
2010-11 Change Change
$12,065,672 $ 996,374 9.00%
$462,900 -$68,100 -12.82%
$16,672,024 $ 991,130 6.32%
$4,128,558 $79,478 1.96%
$14,894 -$16,622 -52.74%

BUDGET HIGHLIGHTS
-- State AidRevenue Limit
= Tax Levy
Revenue Limit State Aid Tax Levy
Limit Increase Aid Increase Levy Increase
2006-07 $ 33,267,925
2007-08 $ 35,349,853 $ 2,081,928
$ 22,347,729
$ 24,863,053 $ 2,515,324
$ 10,920,196
$ 10,486,800 $ - 433,396)
2008-09 $ 37,652,963 $ 2,303,110 $ 26,837,852 $ 1,974,799 $ 10,815,111 $ 328,311
2009-10 $ 39,381,230 $ 1,728,267 $ 27,344,853 $ 507,001 $ 12,036,377 $ 1,221,266
2010-11 $ 40,857,767 $ 1,476,537 $ 27,975,861 $ 631,008 $ 12,881,906 $ 845,529

TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION
GENERAL FUND
DEBT SERVICE
CAPITAL IMPROVEMENTS
COMMUNITY SERVICE
TOTAL
Actual
2009-10
$6.63
$2.42
$0.32
$0.02
$ 9.39
Budget DOLLAR PERCENT
2010-11* CHANGE CHANGE
$7.28 $0.59 9.05%
* Tax rate is estimated. The actual rate can not be determined until property valuation is
certified by the Department of Revenue in October.
$0.28 -$0.04 -15.63%
$0.01 -$0.01 -50.00%
$9.98 $0.59 6.28%
$2.47 $0.05 2.07%

Increased Tax Rate Impact ExamplesIncreased Tax Rate Impact Examples
Assuming a Tax Rate increase of $.59 per $1,000Assuming a Tax Rate increase of $.59 per $1,000
of Equalized (Market) Valueof Equalized (Market) Value
Home Value Tax Increase
$100,000 $59.00
$150,000 $88.50
$200,000 $118.00

* 2010-10 Property Valuations and the corresponding Tax Rate are estimated. Actuals can not
be determined until property valuation is certified by the Department of Revenue in October.
$0
$2
$4
$6
$8
$10
$12
$14
$16
1994-95
1995-96
1996-97
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
15.90
14.52
11.21
10.38
10.11
11.72
10.91
10.2610.11
9.66 9.56
9.08
9.59
9.25
8.94
9.39
9.98
Rate
School Year
TAX RATE PER $1,000 OF EQUALIZED PROPERTY VALUE

How much are the taxes for myHow much are the taxes for my
home going to increase?home going to increase?
The tax levy and rates can not be finalized until 3rd
Friday in September enrollment
numbers are finalized and approved by the State in October.
Municipalities are tax based on assessed value not market value. The
assessed value will vary between the 5 municipalities within the District’s
boundaries.
The tax rate is based on the gross school levy (tax). You need to subtract out
the “School Levy Credit” to determine the net school levy.
The school levy credit for each municipality is not determined until December.
Tax rate increases are based on equalized (market) value. Equalized
values will not be available until mid-October.
Nobody can tell you now!

What is the School Levy CreditWhat is the School Levy Credit??
The School Levy Credit is a “below the line” credit on the property tax statement
initially paid to the municipality to lower school taxes.

What is the School Levy CreditWhat is the School Levy Credit??
Favors high spending, property wealthy districts.
Kimberly is a low spending district with below average property wealth per
student.
Per a February 2, 2010 study by the Legislative Fiscal Bureau, the Kimberly
School District’s levy would have been $227,442 less if general state aid was
used instead of the levy credit
Distributed based on each municipalities share of statewide school levies
during the preceding 3 years
While traditional general state school aide to Districts has been flat the
past few years, the levy credit has increased dramatically

FUND
ACCOUNTING
• District is required by law to account for money in separate accounting
entities called funds.
• Each fund has a specific purpose.
• Each Fund accounts for money received (Revenue) and money spent
(Expenses)

General Fund
•Operating Budget
•By far the Largest Fund
•Money comes primarily from State Aid and the Property Tax Levy
Unaudited 2010-11 Dollar Percent
GENERAL FUND 2009-10 Budget Change Change
Revenue
(Money Coming In)
$40,802,373 $42,801,217 $1,998,844 4.90%
The increase in total revenue is primarily related to an estimated $996,374
increase in Property Taxes as a result of a reduction in General State Aid.
General State Aid is projected to increase by $631,008. The other
significant increase is $300,614 for Revenue from other school districts
for their children attending our District under Open Enrollment

Salary and Benefit Expenses are budgeted to increase by $1,278,686
Unaudited 2010-11 Dollar
Percent
GENERAL FUND 2009-10 Budget Change Change
Expenses
(Money Going Out)
$40,638,434 $42,801,217 $2,162,783 5.32%

2010-11 STAFFING
Additional Staff added with funding from the recently enacted “Education Jobs” law
are not included above.
Net Decrease of -1.9 Employees
Staffing Additions Include:
(1)Special Education Teacher
(1) Elementary Teacher
(.5) School Year Nurse
Staffing Reductions Include
(1) Assistant High School Principal
(.5) HS Librarian
(.4) School Year Secretary
(3) .5 Para Professionals
(1) Maintenance Supervisor

SIGNIFICANT GENERAL FUND EXPENSE INCREASES
• Interfund Transfer to the Special Education Fund as
result of a reduction in Federal Stimulus Funding
and increased Special Education Staff Salaries
and Benefits
• Tuition Costs for Kimberly Residents
attending other School Districts
+ $1,048,781
+ $290,000
• Benefits for New and Existing
Staff including increased
contributions for Retirement Benefits
+ $605,349
• Salaries for New and Existing Staff +673,337

SIGNIFICANT CAPTIAL EQUIPMENT PURCHASES
Copier/Printer Replacements $78,000
$17,000
Various Equipment for
Wireless Computer Networks
Various Electronic devices to replace Textbooks
Digital Distribution for TV/Cable
Access at Westside
$239,000
Student Response System for
Interactive Real-time Assessments
$40,00
0
$15,000

SIGNIFICANT GENERAL FUND EXPENSE DECREASES
One Time money used for
Energy Conservation Projects
- ($450,000)
Utility Costs - ($133,000)
Budget includes the same dollar allotment per student
as last several years in non-salaried expenditures where
practical

2010 ANNUAL MEETING
Motion will be made to adopt a Tax Levy of $16,672,024
as presented to you, the electorate

More detailed information is available in the Annual
Meeting Booklet or can be obtained at the Administrative
Offices on 217 E. Kimberly Avenue
Do you have any questions?
Gary Kvasnica, the Director of Business Services, can be
reached at 788-7900.
Thank You!

Kimberly Area School District 2010 Annual Meeting Recap

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Kimberly Area School District 2010 Annual Meeting Recap

Ähnlich wie Kimberly Area School District 2010 Annual Meeting Recap (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Kimberly Area School District 2010 Annual Meeting Recap