13. 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.
14. 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
15. 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.
16. 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
17. 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.
18. 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
19. 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
20. 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
22. 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
23. 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
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.
