2019-2020 Park Hill School District Budget · i Park Hill School District BUDGET. 2019-2020 . Hawthorn Elementary students enjoying a beautiful spring day. Park Hill Board of Education

2019-2020

Park Hill School District 7703 NW Barry Road

Kansas City, MO 64153 816/359-4000

http://www.parkhill.k12.mo.us

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Park Hill School District

BUDGET 2019-2020

Hawthorn Elementary students enjoying a beautiful spring day.

Park Hill Board of Education

President, Bart Klein Vice President, Kimberlee Ried

Treasurer, Janice Bolin Member, Todd Fane

Member, Scott Monsees Member, Susan Newburger

Member, Kyla Yamada

Superintendent of Schools, Dr. Jeanette Cowherd Secretary to the Board, Opal Hibbs

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TABLE OF CONTENTS

TABLE OF CONTENTS .............................................................................................................................................................. III

DISTRICT AWARDS AND RECOGNITIONS ................................................................................................................................................... IX BUDGET LINKS ................................................................................................................................................................................. XV BUDGET ORGANIZATION ..................................................................................................................................................................... XV BUDGET MESSAGE .......................................................................................................................................................................... XVII

EXECUTIVE SUMMARY............................................................................................................................................................. 1

EXECUTIVE SUMMARY - ORGANIZATIONAL COMPONENT ............................................................................................................................. 3 District Vision, Mission, Values and Goals ................................................................................................................................ 3 Budget Process & Timeline ....................................................................................................................................................... 4 Changes in Budget Process and Policies ................................................................................................................................... 5 Allocation of Financial Resources to Achieve Goals and Objectives ......................................................................................... 6 Allocation of Human Resources To Meet Goals of the District ............................................................................................... 12 Park Hill Board of Education .................................................................................................................................................. 15 Park Hill Administrative Officials ............................................................................................................................................ 17

EXECUTIVE SUMMARY - FINANCIAL COMPONENT .................................................................................................................................... 19 Fund Structure ........................................................................................................................................................................ 19 Overview of District Revenues ................................................................................................................................................ 23 Overview of District Expenditures .......................................................................................................................................... 33 Summary of 2019-2020 Budget ............................................................................................................................................. 39 Budget Forecasts For All Funds .............................................................................................................................................. 42

EXECUTIVE SUMMARY - INFORMATIONAL COMPONENT ............................................................................................................................ 45 Student Enrollment Trends and Forecast ............................................................................................................................... 45 Park Hill School District Tax Base ........................................................................................................................................... 46 Personnel Resource Changes .................................................................................................................................................. 49 Changes in Debt ..................................................................................................................................................................... 49

ORGANIZATIONAL SECTION ....................................................................................................................................................52

PARK HILL SCHOOL DISTRICT OVERVIEW ............................................................................................................................................... 54 Introduction ........................................................................................................................................................................... 54 Park Hill Student Enrollment .................................................................................................................................................. 63

GOVERNANCE STRUCTURE ................................................................................................................................................................. 64 Park Hill Board of Education .................................................................................................................................................. 64 Administrative Staff ............................................................................................................................................................... 65

MISSION AND GOALS OF THE ORGANIZATION ......................................................................................................................................... 66 Mission, Vision and Values ..................................................................................................................................................... 66 Strategic Perspectives ............................................................................................................................................................ 67 Action Plans ............................................................................................................................................................................ 68 Major Goals and Objectives ................................................................................................................................................... 68

SIGNIFICANT BUDGET AND FINANCIAL COMPONENTS ............................................................................................................................... 74 Budget Policies and Procedures ............................................................................................................................................. 74 Regulations That Govern the Budget Process – Missouri School Finance Laws ..................................................................... 77 Classification of Revenues and Expenditures ......................................................................................................................... 88 Fund Balance Policies ............................................................................................................................................................. 90

BASIS OF ACCOUNTING FOR FINANCIAL REPORTING ................................................................................................................................. 91 General Accounting Policies ................................................................................................................................................... 92

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BUDGET DEVELOPMENT PROCESS ........................................................................................................................................................ 96 Budget Process and Timeline ................................................................................................................................................. 96 Budget Calendar..................................................................................................................................................................... 96 Budget Adoption, Implementation and Evaluation ................................................................................................................ 98 Budget Administration and Management process ................................................................................................................. 98

OTHER SUSTAINING LOCAL REVENUE SOURCES ....................................................................................................................................... 99

FINANCIAL SECTION ............................................................................................................................................................. 100

BUDGET ASSUMPTIONS ................................................................................................................................................................... 102 Key Budget Factors............................................................................................................................................................... 102 Budget Assumptions ............................................................................................................................................................ 102 Debt Service ......................................................................................................................................................................... 106

PRESENTATION OF FINANCIAL DATA ................................................................................................................................................... 107 Organization of Data – Pyramid Approach .......................................................................................................................... 107 Presentation of Fiscal Years ................................................................................................................................................. 108 Budget Forecast ................................................................................................................................................................... 109 Presentation of Values ......................................................................................................................................................... 110 Level One – Summary of All Funds ....................................................................................................................................... 111 Level Two - Summary Data For All Operating Funds ............................................................................................................ 121 Level Three -Summary Data for Individual Funds ................................................................................................................. 133 Level Four - Information by Administrative Unit .................................................................................................................. 143 Revenue Discussion .............................................................................................................................................................. 154 Expenditure Discussion ......................................................................................................................................................... 154 Capital Expenditures and Capital Planning .......................................................................................................................... 155

SUMMARY OF 2019-2020 BUDGET .................................................................................................................................................. 163 2019-2020 Total Revenues and Expenditures ...................................................................................................................... 163 2019-2020 Operating Revenue and Expenditures ................................................................................................................ 163

ISTRICT DEBT ................................................................................................................................................................................ 166 Debt...................................................................................................................................................................................... 166 Park Hill Bond Issue History .................................................................................................................................................. 169

OTHER OBLIGATIONS ...................................................................................................................................................................... 172 Pension and Employee Retirement Plans ............................................................................................................................. 172 Other Postemployment Benefits .......................................................................................................................................... 175 Leases ................................................................................................................................................................................... 175

FUND BALANCES ............................................................................................................................................................................ 176 Overview of Fund Balance .................................................................................................................................................... 176

INFORMATIONAL SECTION ................................................................................................................................................... 182

ASSESSED VALUATION AND TAXATION ................................................................................................................................................ 184 Tax Levy Summary ............................................................................................................................................................... 185

ENROLLMENT AND FUTURE PROJECTIONS ............................................................................................................................................ 190 Enrollment Projection Methods ........................................................................................................................................... 190 Demographic Changes ......................................................................................................................................................... 192 Student Enrollment History and Projections ......................................................................................................................... 193

PERSONNEL RESOURCE ALLOCATIONS ................................................................................................................................................. 196 BOND AMORTIZATION SCHEDULE ...................................................................................................................................................... 199

Bond Amortization Schedule (Detail) ................................................................................................................................... 200 PARK HILL SCHOOL DISTRICT PERFORMANCE RESULTS ............................................................................................................................ 203

Park Hill School District Performance Results ....................................................................................................................... 203

GLOSSARY ............................................................................................................................................................................ 212

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APPENDIX............................................................................................................................. ERROR! BOOKMARK NOT DEFINED.

ACCOUNT CODE DESCRIPTIONS ......................................................................................................................................................... 225 Expenditure Budget Format ................................................................................................................................................. 226

LINE ITEM BUDGET DETAIL ............................................................................................................................................................... 226

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Park Hill School District

BUDGET 2019-2020

An Award Winning District

From top to bottom: (1) Toby Frick, a Park Hill South

High School student, received the Rensselaer Medal from the Rensselaer Polytechnic Institute. The honor recognizes students’ academic achievement in math and science. Frick plays the French horn in band and serves as section leader, and he will have completed 13 upper level courses before he graduates. (2) Park Hill High School’s “Trojan TV News” received second place in the nation for the show’s opening from the Student Television Network. Andrew Hrisak and Ryan Enders produce the show's opening. (3) Rouida Siddiqui from Lakeview Middle School (center), won the Park Hill School District Spelling Bee, advancing to the Scripps National Spelling Bee in Maryland from May 27-30. (4) Brian Francis and Carrick O’Bleness from Park Hill South High School received recognition as 2019 National Merit Finalists. (5) Plaza Middle School's Bully Prevention Contest winners were; Aspen Verhoff first place for her comic strip, Isabel Nelson first place for her video, Mahtab Hadjian first place for her bookmark and Hannah Stewart first place for her poster. (6) The Congress eighth-grade orchestra and band earned a superior rating at the KC Metro Middle School Large Group music festival.

https://www.facebook.com/ParkHillSouthHighSchool/https://www.facebook.com/ParkHillSouthHighSchool/https://www.facebook.com/RPI.EDU/

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DISTRICT AWARDS AND RECOGNITIONS

Park Hill School District continues its reputation as an award winning school district locally, at the state level and nationally. The list below represents a number of the awards given to students, staff and schools during the 2018-2019 school year.

July

• Renner and Prairie Point elementary schools earned the 2018-2020 National PTA School of Excellence award. Prairie Point has won the award twice.

August

• Evan Morris placed in the top 10 in biomedical lab science at the international Health Occupations Students of America competition.

• Brandt Bell, head coach of the Park Hill High School girls’ soccer team, was named the Missouri Large Public School Coach of the Year by the Missouri State High School Soccer Coaches Association.

September

• Brian Francis and Carrick O’Bleness from Park Hill South High School are 2019 National Merit Finalists. Brinna Roberts and Cooper Sturm from Park Hill High School and Meghan Pate and Maya Yildirim from Park Hill South received Commended Student recognition.

• Bianca Mayfield-Miller, counselor at Hawthorn Elementary, received the 2018-2019 Elementary School Counselor of the Year award from the Missouri School Counselor Association. Dr. Stephanie Amaya, who supervises Park Hill School District’s school counselors and school social workers, received the School Counseling Director of the Year award from the MSCA.

October

• Dr. Tressa Wright, Plaza Middle School principal, received the Assistant Principal of the Year award from the Greater Kansas City Missouri Principals Association for her previous work.

• Samantha Fitzgerald, Park Hill School District communications specialist, earned recognition as one of the National School Public Relations Association’s top 35 Under 35 professionals in the country in school public relations.

• Twenty-seven Park Hill and Park Hill South high school choir students are members of the all-district choirs and honor choirs.

• Dylan Klann, Lily Graham, Hirad Hirad and Isis Irving from Park Hill High School earned recognition as finalists for the QuestBridge National College Match program, qualifying them for full scholarship awards to one of 40 college partners, such as Yale University or Stanford University, if they are matched with one of the schools.

• Mahtab Hadjian, Aspen Verhoff, Isabel Nelson and Hannah Stewart from Plaza Middle School placed first in the school’s Bully Prevention Contest.

• Park Hill High School student Josie Phillips served as Missouri DECA’s vice president of community service for the 2018-2019 school year.

• Noelle Alviz-Gransee, Caroline Morgan, Annie Buckles and Kendra Kernel from Park Hill South High School earned national recognition at the Journalism Education Association/National Scholastic Press Association Fall National High School Journalism Convention.

• Alexis Nigro, Mary Garrett and Jacob Womack earned third place in the Missouri Interscholastic Press Association’s Annual PSA Challenge.

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• Savannah Riffle from Park Hill High School and Lauren Ingraham from Park Hill South High School received the 2019 Daughters of the American Revolution Good Citizen Award.

December

• Dr. Steve Archer, Union Chapel Elementary principal, earned the 2019 Clay-Platte Missouri Distinguished Principal award from the Missouri Association of Elementary School Principals.

• Thirteen Park Hill School District student musicians earned All-State band honors.

January

• The Park Hill School District once again earned the highest ACT composite scores in the Kansas City, Missouri, region; the scores were also above both the Missouri and national averages. The district-wide ACT composite score was 21.8, cementing the school district’s spot at the top of the region once again. With nearly every graduating senior taking the standardized test at least once, Park Hill South and Park Hill high schools reported scores of 22.4 and 21.4, respectively. The district’s score also came out ahead of the Missouri average composite score of 20, as well as the national score of 20.8.

• The Horatio Alger Association selected Park Hill South High School student Faisa Hassan as a 2019 winner of the Horatio Alger Scholarship award.

February

• For her computing-related achievements and interests, Park Hill High School Student Ashlyn Hanson received an honorable mention for the 2019 Award for Aspirations in Computing from the National Center for Women & Information Technology.

• Journalism students from Park Hill High School earned recognition for producing the Best Daily Live Show in the Midwest from the Student Television Network.

• Brad Kincheloe, principal at Park Hill High School, received the Distinguished Service Award from the Missouri State High School Activities Association.

• Katelyn Robey from Park Hill High School received first place for her colored pencil drawing in the 2D category at the Merriam High School Visual Arts Competition.

• Rouida Siddiqui, a Lakeview Middle School student, won the Park Hill School District Spelling Bee, advancing to the Scripps National Spelling Bee.

March

• Twenty Park Hill and Park Hill South high school students qualified to represent the Northland Career Center in the SkillsUSA State Leadership and Skills Conference.

• Stella Gulledge from Lakeview Middle School and Ari Staggs from Congress Middle School qualified to compete at the state level of the National Geographic Bee.

• The eighth-grade orchestra and band from Congress Middle School earned superior ratings at the KC Metro Middle School Large Group music festivals.

• For the 12th year in a row, the Park Hill School District earned the Meritorious Budget Award from the Association of School Business Officials International (ASBO). A copy the ASBO MBA award certificate is presented on page xiii.

• Paige Harberts from Park Hill High School and Gretchen Roth and Maya Yildirim from Park Hill South High School received silver medals for their work in the national 2019 Scholastic Art & Writing Awards competition.

• Choirs from Park Hill and Park Hill South high schools earned Exemplary honors at the Missouri State High School Activities Association Large Group Festival.

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April

• Nicole Kirby, director of communication services for the Park Hill School District, received the Distinguished Service Award from the Missouri School Public Relations Association.

• Park Hill School District journalism students on the newspaper, yearbook and broadcast staffs at both high schools brought home awards from the Missouri Interscholastic Press Association’s Journalism Day 2019.

• Jennifer Holden, debate teacher from Park Hill South High School, received recognition from the National Speech & Debate Association. Holden earned Four Diamond membership in the association’s Honor Society for her support of her students’ speech and debate presentations, competition and service.

• Faisa Hassan, a Park Hill South High School student, received national recognition as a 2019 Dell Scholar. Hassan received the honor for maintaining good grades and demonstrating grit, potential and ambition.

• The robotics teams from Park Hill and Park Hill South high schools earned honors at the world championship. The Park Hill South Electromagnetic Panthers placed 50th in their division. The Park Hill High School Trobots placed 56th in their division and received the Creativity Award, which recognizes design creativity, component use and play strategy. Both robotics teams from Park Hill and Park Hill South won regional championships to advance to the world championship.

• Dr. Ryan Stanley, principal of the LEAD Innovation Studio, received the Exemplary New Principal award from the Greater Kansas City Missouri Principals Association.

• Fenet Fekadu, Isabella Guerrero, Bali Cortes, Tyler Unrath and Ian Flowers from Park Hill South High School earned spots in the Pat Walker Missouri Public Affairs Academy.

• Deanna Eberhart, 2018 Park Hill High School graduate, received a perfect score on her AP Research exam. • The 2019 Missouri Scholars Academy chose Annemarie Jones, Barinamene Nwike and Hannah Tristan from

Park Hill High School and Grant Bergstrom and Cooper Mathisen from Park Hill South High School to attend its summer program at the University of Missouri. It is a three-week academic residential program for 330 of Missouri’s gifted students.

• Twenty students from Park Hill and Park Hill South high schools earned honors at the state SkillsUSA competition for career and technical skills. Garrett Raynor from Park Hill High School and Ryan King from Park Hill South High School advanced to the national competition.

• Journalism students from Park Hill and Park Hill South high schools earned awards at the Journalism Educators of Metropolitan Kansas City competition.

• Park Hill High School’s “Trojan TV News” received second place in the nation for the show’s opening from the Student Television Network. Andrew Hrisak and Ryan Enders produce the show’s opening.

• The Northland Regional Chamber of Commerce honored 44 Park Hill School District teachers, support staff members and supporters at the 2019 Excellence in Education Banquet.

• Students from across the Park Hill School District earned spots in the Missouri Fine Arts Academy, which recognizes top artists from across the state in visual arts, theater, dance, creative writing and music.

• The Duke University Talent Identification Program recognized 19 middle school students from the Park Hill School District for academic excellence. Seven students earned Grand Recognition honors, which means they earned scores similar to the 90th national percentile rank for college-bound seniors taking the ACT and SAT.

• Band, orchestra and choir students from across the Park Hill School District earned top honors at the Missouri State High School Activities Association’s state music festival.

• Evan Ericksen and Eunseo Jung from Park Hill High School both earned an honorable mention in Missouri Scholars 100, which is a statewide program that honors 100 of Missouri's top academic students in the class of 2019.

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May

• The Park Hill School District’s 57th annual Art Festival featured almost 6,000 original works of art from Park Hill students from kindergarten through 12th grade. Superintendent Dr. Jeanette Cowherd selected 26 students’ artwork to display at the district office.

• Corin Turner, Mackenzie Albright, Josie Phillips, Fahad Hanif and Jordon Brooks from Park Hill High School earned recognition at the International Career Development Conference.

• Toby Frick, a Park Hill South High School student, received the Rensselaer Medal from the Rensselaer Polytechnic Institute. The honor recognizes students’ academic achievement in math and science.

• The Reflections program is a national competition sponsored by the PTA. Reese Eisenmenger and Marcus Williams II earned first in the state competition and qualified to advance to the National PTA Reflections contest.

• Jay Elder and Luke Zahnd from Park Hill High School and Matthew Kruse from Park Hill South High School earned honors at the state speech and debate competition.

• Union Chapel Elementary received recognition for exemplary teaching and reinforcing behavioral expectations from the Missouri Schoolwide Positive Behavior Intervention Support program. Union Chapel is among only 11 schools in the Kansas City, Missouri, area to earn the gold level of recognition, which it has received three years in a row.

• Students in the Professional Studies class at Lakeview Middle School placed second in the world for their design of a fictional school building.

Meritorious Budget Award

• The Park Hill School District proudly participates in the Association of School Business Officials’ (ASBO) Meritorious Budget Award (MBA). The Meritorious Budget Award is the highest form of recognition in budgeting for school entities. Its attainment represents a significant accomplishment by a school entity and its management. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan and as a communications medium. The district is proud to have received the Meritorious Budget Award for the last twelve consecutive fiscal years, beginning with the 2007-2008 Annual Budget. A copy the ASBO MBA award certificate is presented on page xiii.

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BUDGET LINKS

In order to reduce the size of the budget document, and to reduce repeated content, this budget document includes specific text that is hyperlinked to take the reader directly to sections or page numbers that are referenced. For example, if the reader sees blue text with an underline . . .

Informational Section

. . . this text is a hyperlink that can advance the reader directly to the part of the document being referenced.

In addition, specific page references, such as . . .

(page 182)

. . . the number (182) is also a dynamic hyperlink that takes the reader directly to that page of the budget document. Page numbers will not be blue or underlined.

Should the reader seek to go directly to the referenced pages, hover the mouse pointer over the text and, using the mouse, click the text reference. To return to the original page, the reader can select the Alt + Left Arrow within the pdf file.

BUDGET ORGANIZATION

The Park Hill School District budget document represents the financial plan of the Park Hill School District covering the revenues, expenditures, and fund balances for all funds as reported to the Department of Elementary and Secondary Education and in accordance with the laws of the State of Missouri. The primary purpose of the budget document is to provide timely information concerning the past, present and projected financial status of the district and to facilitate financial discussions that support the mission and goals of the Board of Education. It is the responsibility of the district to publish and disseminate budget information to the Board of Education and the local community.

This budget has been prepared to meet Missouri state statutes and Park Hill School District Board policy DB requiring school district budgets to include five specific components:

(1) a budget message (page xvii); (2) estimated revenues to be received from all sources with comparison to estimated or actual revenues for

the prior two years (page 24); (3) proposed expenditures for the budget year with comparison to the prior two years (page 34); (4) a schedule detailing debt service interest, principal, and charges on all debt (page 200); and (5) a general budget summary including information on assessed valuation (page 47), tax levies (page 48), and

fund balances (page 176).

The entire Park Hill School District Board policy DB can be found on page 74.

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The components above are integrated into this budget document which is also organized to meet the standards of the Meritorious Budget Award (MBA) of the Association of School Business Officials International (ASBO). MBA standards require that budget information be presented within the following sections:

• Executive Summary (page 1) • Organizational Section (page 52) • Financial Section (page 100) • Informational Section (page 182)

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BUDGET MESSAGE

June 1, 2019

The 2019-2020 budget represents a long-standing tradition of sound financial management and long-range planning by the Park Hill Board of Education and district staff. The budget document is an excellent source of information that provides a better understanding of the financial plan and results of the district. This document has been prepared and presented to the Board of Education as a basis for the high quality educational services the Park Hill School District patrons have come to expect. In short, the budget provides the framework by which resources are allocated to accomplish the mission of the Park Hill School District, and serves to guide Park Hill in a fiscally sound and responsible direction for 2019-2020 and years beyond.

Park Hill is an award-winning school district with a bond rating amongst the highest in the state (Aa2 from Moody’s) and with the highest recognition provided by Missouri for academic achievement. In fall, 2015, Park Hill School District was awarded the Missouri Quality Award from the Excellence in Missouri Foundation for the second time in the last decade. Park Hill School District is the only school district in the state to receive this recognition twice. The Missouri Quality Award program is based on the Malcolm Baldrige National Quality Award Criteria for Performance Excellence. In addition, the Park Hill School District has received the Association of School Business Officials (ASBO) prestigious Meritorious Budget Award for twelve consecutive years.

As a part of the district’s 2018-2023 strategic plan (Comprehensive School Improvement Plan or “CSIP”), the district has identified a strong financial condition as a strategic advantage toward accomplishing the strategic goals and objectives identified by the Board of Education and community. In addition, the CSIP outlines financial sustainability as a “key to excellence” that supports the entire strategic plan. This budget document provides the foundation for public transparency, and also serves as the focal point for the communication of district financial processes to the community.

VISION Building Successful Futures • Each Student • Every Day

MISSION Through the expertise of an engaged staff, the Park Hill School

District provides a relevant education in a safe, caring environment to prepare each student for success in life.

VALUES Student Focus

Integrity High Expectations

Continuous Improvement Visionary Leadership

Equity STRATEGIC PERSPECTIVES – KEYS TO EXCELLENCE

Park Hill School District will leverage its Keys to Excellence for sustainability into the future.

Academic Climate

Employee Finance GOALS

College, Career, and Life Readiness: All students will graduate college, career, and life-ready. Access and Opportunity: Ensure success for ALL students regardless of background

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In addition to supporting the district’s strategic plan, the 2019-2020 budget provides resources for the increasing enrollment within the school district. The 2018-2019 K-12 enrollment of 11,617 is expected to grow in future years as it has for 35 consecutive years, averaging 1.5% growth annually. To address the facility needs, district voters approved a $110 million no-tax-increase bond issue in April, 2017. The 2019-2020 budget includes $69.5 million in expenditures for the district’s capital plan. The 2019-2020 capital plan includes the completion of Walden Middle School (opens August, 2019), Hopewell Elementary (opens August, 2019), LEAD Innovation Studio (opens August, 2020), and the district’s Support Services and Transportation facility (opens in January, 2020). In addition, capital improvements to existing schools and facilities are included within the capital plan.

Local, state and national economic conditions play a significant role in the budget development process. Mixed economic conditions have influenced both residential and commercial growth over the last five years. In short, the nationwide economic crisis earlier in this decade significantly slowed assessed valuation growth, reduced the valuation of existing property, and negatively impacted state budget factors with reductions in income and sales tax. As seen by an increase in the new housing starts in the district over the last five years, economic conditions have improved locally and at the state level, positively impacting revenues for the Park Hill School District and Missouri public schools.

The work of developing the district budget is the work of many dedicated individuals, including board members, district administrators, school principals, school budget committees, school leadership groups, school improvement teams, directors, teachers, and support staff. The budget development process is an ongoing cycle taking place throughout the school year, requiring school leaders to simultaneously monitor and evaluate one budget while planning and developing future budgets.

Revenue. The taxes derived from local assessed valuation of property are the primary source of revenue in the Park Hill School District. The Platte County Assessor annually assesses the real and personal property in the school district. The 2018 district aggregate assessed valuation was set at $1.75 billion, up 3.8% from the prior year. In tandem with Park Hill's ad valorem ("according to value") operating tax rate of $4.7848, one of the lowest rates in the greater Kansas City area, nearly three quarters of all district revenue is generated. 2019-2020 local revenue estimates have been established reflecting an increase (2.5%) in assessed valuation, and with the assumption of maintaining the current operating tax rate.

Per state law, the district’s tax rate will be officially set at a tax rate hearing in August, 2019. At this meeting the Board of Education will decide on a tax levy rate. The 2019-2020 budget has been prepared with no anticipated change in the total tax rate of $5.4035 (includes operating and debt service tax rates) per $100 of assessed valuation. However, there may be changes to the tax rate ceiling (made by the Missouri State Auditor) or the actual tax rate based upon the certified aggregate assessed valuation figures provided by the Platte County Assessor prior to the tax rate hearing.

2019-2020 district revenues are impacted by shortfalls in state revenues over the last five years. While an increase in the state’s basic formula revenue is anticipated over 2018-2019, much of this increase is due to the district’s anticipated increase in enrollment and student attendance, key variables within the foundation formula. While additional students drive revenue through the state formula, it also increases district expenditures. Due in large part to the effect on revenues by growth in district enrollment, total state revenues are expected to increase from $41.0 million in 2018-2019 to $42.8 million in 2019-2020.

The 2019-2020 budget has been built with a forecast of $179.6 million in total revenue and $167.0 million in operating revenue (operating revenues exclude revenues derived from the debt service levy or sale/refinancing of

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general obligation bonds). This reflects an anticipated increase of approximately $890,400 (0.54%) in operating revenue from 2018-2019. This relatively small increase in operating revenue is due to an anomaly in operating revenue in 2018-2019 where a large amount of disputed taxes was paid from a prior year, thus, inflating the revenue in 2018-2019 from the prior year. The two-year operating revenue growth from the 2017-2018 to the 2019-2020 budget is 9.2%, or 4.6% per year. An increase of 4.6% better represents the operating revenue growth represented within the 2019-2020 budget.

Expenditures. The 2019-2020 budget includes $245.6 million in total expenditures and $172.9 million in operating expenditures. Expenditures are budgeted in the following areas:

Expenditure Object 2019-2020 Total Expenditure Budget

% of Total Expenditures

6100-Salaries 98,170,008 40.0% 6200-Employee Benefits 27,915,906 11.4% 6300-Purchased Services 20,764,235 8.5% 6400-Supplies and Materials 17,059,275 6.9% 6500-Capital Outlay 69,498,775 28.3% 6600-Long and Short Term Debt 12,212,618 5.0%

Total 245,620,817

The district’s expenditures have increased over the last three decades primarily due to student growth. Student enrollment has grown by an average of 149 students per year over the last 25 years, with current official K-12 enrollment of 11,617 students in the 2018-2019 school year. In 2018-2019, the enrollment grew by 159 students. The 2019-2020 budget has been crafted to support a district enrollment of 11,852 students, an increase of 235 students (+2.0%).

With enrollment growth comes additional staff to support class size and to support staff to student ratios. The 2019-2020 budget includes new operating costs associated with opening two new schools: Walden Middle School, and Hopewell Elementary. Increases in the district’s contribution to employee benefits, fuel and energy costs, and contracted increases in student transportation costs, supplies, and other budgeted areas result in expenditure growth as well.

Through a collaborative negotiations process with staff, the district has agreed to fund salary schedules that reflect 2.5% average increases in salary, and a 2.6% average increase in total staff compensation (salary and benefits). Staffing ratios in all areas will remain consistent for 2019-2020 which will result in a number of additional staff positions.

The 2019-2020 capital plan includes expenditures related to the completion of Walden Middle School (opens August, 2019), Hopewell Elementary (opens August, 2019), LEAD Innovation Studio (opens August, 2020), and the district’s Support Services and Transportation facility (opens in January, 2020). In addition, capital improvements to existing schools and facilities are included within the capital plan. Capital projects financed through the district’s capital fund have also been budgeted to cycle out antiquated equipment, update middle school outdoor facilities (tracks), repair facilities as needed (roofs) and replace heating, ventilation and air conditioning (HVAC) systems as needed.

Fund Balances. The projected gap between operating revenue ($167.0 million) and expenditures ($172.9.0 million) is to be funded by district fund operating and capital balances. The use of fund balances in 2019-2020 and the years following have been a part of a long-range financial plan that includes preparing for new operating costs associated

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with opening four new facilities within the next two years, and updating and improving existing facilities as outlined in the district’s capital plan.

The Park Hill Board of Education has established a target range for operational fund balance at 18 to 22% of prior year expenditures at the end of each fiscal year (June 30). For example, the operating expenditures (less capital) during the 2018-2019 year are projected to be $151.4 million. The Board of Education has established the target range for the operating fund balance at the beginning of the 2019-2020 fiscal year to be between 18 and 22% of $151.4.0 million, or between $27.2 million and $33.3 million.

Fund balance is a key metric that the district uses to measure the financial condition of the district, allows the district to meet cash flow demands throughout the school year, balance fiscal year surpluses and deficits, contributes to the exemplary bond rating given the district, as well as provide monies for contingencies. In short, fund balance allows for economic stability and sustainability of the district.

The projected opening operating fund balance for the 2019-2020 budget is projected to be 23.8% of prior year operating expenditures, or approximately ten weeks of operating cash. A commitment was made to the district community in 2002 to increase the fund balance. Over the last sixteen years, the fund balance has increased from 9.6% to the projected 23.8%. Values above the board established range of 18 to 22% had been done strategically to offset the planned expenditures in the years following.

The 2019-2020 budget has been crafted to result in an ending operating fund balance of $33.2 million, 20.3% of prior year expenditures, which falls within the Board of Education approved range of 18 to 22%. The 2019-2020 budget also includes a plan for the ending capital fund balance to be $10.4 million, 117.6% of the average of the prior 3-year capital expenditures. This falls outside of the target range of 65 to 85%. The balances above the range are expected to be spent down in future fiscal years to address the capital needs in these years.

Debt. The district’s current debt service tax levy is the lowest in the greater Kansas City area. The Board of Education set the debt service tax levy at $0.6017 in August, 2017 and it is not budgeted to increase.

As of the end of the 2018-2019 school year, the district’s debt stands at $167.9 million. This is well below the legal debt limit in the state of Missouri (15% of Assessed Valuation) of $274.5 million.

The 2019-2020 debt service budget includes a payment of $6.3 million in principal and $5.8 million in interest.

Conclusion

This budget is developed with the best and most recent information available to school district officials. Anticipated expenditures and revenue are estimated projections based on this information. Budget revisions may be made during the budget year to reflect unforeseen circumstances.

The information included in the budget document is structured to meet the requirements of the Meritorious Budget Award established by the Association of School Business Officials (ASBO). The Meritorious Budget Award is the highest form of recognition in budgeting for school entities. Its attainment represents a significant accomplishment by a school entity and its management. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan and as a communications medium. The district is proud to have received the Meritorious Budget Award for the last twelve consecutive fiscal years.

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The preparation of this report could not have been accomplished without the diligent and dedicated services of the business office and the many district administrative assistants involved in the budgeting processes. We would also like to express our appreciation to the administrators for striving to maintain a tradition of educational excellence in a fiscally responsible manner. Our sincere appreciation also goes to the Park Hill School District Board of Education and our community for providing the fiscal support needed to develop, implement and maintain the high quality of educational programs that has allowed the Park Hill School District to focus on Building Successful Futures, Each Student, Every Day.

We are truly hopeful that this document will provide information that will allow the reader to understand the district’s financial operations as well as its goals and objectives and how they relate to our education programs and services for the 2019-2020 fiscal year and beyond.

Respectfully submitted,

Dr. Jeanette Cowherd Superintendent of Schools Park Hill School District

Dr. Paul Kelly Assistant Superintendent – Business and Technology Park Hill School District

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EXECUTIVE SUMMARY

1

EXECUTIVE SUMMARY

The Executive Summary is the first major section of the school budget document. It highlights important information contained in the budget. Users may rely on this section for an overview – a summary of what can be found in the rest of the document.

WHY CAN’T WE SEE IN THE DARK: First-grade students learned about the behavior of light in class at Southeast Elementary. Students discussed and tested how light interacts with objects like glass,

metal and Styrofoam.

PARK HILL SCHOOL DISTRICT 7703 NW Barry Road

Kansas City, Missouri 64153

(816) 359-4000

www.parkhill.k12.mo.us

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY - ORGANIZATIONAL COMPONENT

DISTRICT VISION, MISSION, VALUES AND GOALS

Park Hill School District’s culture of high expectations and continuous improvement is guided by the tenets of a professional learning community with a shared vision, mission, and values. The district focuses upon identified strategic focus areas and articulated goals within a five-year strategic plan that are aligned with student and stakeholder requirements/expectations. Staff members utilize collective inquiry, collaborative teams, and an action orientation to accomplish the goals of the district.

The Board of Education and senior leaders have defined the vision, mission, and values of the school district.

The vision of the district is:

Building Successful Futures • Each Student • Every Day

The mission is:

Through the expertise of an engaged staff, the Park Hill School District provides a relevant education in a safe, caring environment to prepare each student for success in life.

The values of the district have been identified as:

Student Focus Integrity

High Expectations Continuous Improvement

Visionary Leadership Equity

The Missouri Department of Elementary and Secondary Education (DESE) requires a five-year strategic plan for each public-school district in Missouri. These plans are called Comprehensive School Improvement Plans (CSIP). The current five-year plan was adopted by the Board of Education in spring, 2018 with goals/objectives/actions to take place through the 2022-2023 school year. The goals of the 2018-2023 CSIP are monitored bi-annually by the Board of Education with revisions occurring as a result of input from the CSIP team based upon results or progress toward goals.

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Goals of the 2018-2023 CSIP have been identified as:

COLLEGE, CAREER, and LIFE READINESS: All students will graduate college, career, and life-ready.

ACCESS and OPPORTUNITY: Ensure success for ALL students regardless of background.

KEYS TO EXCELLENCE: Park Hill School District will leverage its Keys to Excellence for sustainability into the future.

Further detail of the 2018-2023 CSIP, including measurable objectives, is within the Organizational Section of this document, beginning on page 66.

BUDGET PROCESS & TIMELINE

The Park Hill School District has developed systematic and repeatable budget processes to prepare the annual budget. The process includes the work of the Board of Education, district administration, and district staff throughout the school year.

BUDGET PROCESS

The 2019-2020 budget has been developed over a 10-month period with input from staff, community, administration and the Board of Education.

As in previous years, school-based decision recommendations were incorporated into the financial planning process. Schools and programs are provided an allocation, which includes a previous year’s breakdown, a forecast of 2019-2020 enrollment by school/program, and new allocations for each building. The school principal then allocates the amounts to specific departments based upon feedback from faculty members, either directly or through a representative such as a grade-level, department chairperson and/or faculty advisory committee.

During the budget review process, budget leaders request additional allocations if necessary to support the goals and vision of the school and school district. In addition, capital improvement and maintenance requests are submitted at this time. All budget allocations and requests for each school and program are maintained in an electronic budget system.

Staff salaries and benefits, which account for over 75% of the operating expenditures of the district are budgeted based upon current staffing combined with anticipated staff additions. School board policy regarding class size plays a significant role in anticipating staff additions, as each school and class cohort are analyzed for the possibility of increase or decrease in staff for the following year. This provides Park Hill School District with a salary and benefit budget closely aligned with the actual expenditures allowing more accurate salary projections for future years.

Capital budgeting takes place throughout the school year as inventories are reviewed; growth issues defined, and specific building needs are presented. Upon review of building specific needs and staff input, the building/program administrator presents a prioritized capital expenditure proposal to the Assistant Superintendent for Business and Technology for review and approval. This process usually takes place during budget reviews in January through March of each year. Unfunded capital requests are forwarded to the district’s Long-Range Capital Planning Committee for future consideration.

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BUDGET TIMELINE/CYCLE

The preparation and approval of a district budget is a cyclical 12-month process, oriented around the district’s fiscal year which begins each July 1. State law requires Board of Education approval of the budget prior to July 1. Below is a chart graphic depicting the cyclical nature of budget preparation and approval.

A Budget Calendar that includes detail of the budget monitoring, preparation and approval process can be found in the Organizational Section of this document, beginning on page 96.

CHANGES IN BUDGET PROCESS AND POLICIES

Key budget processes and timelines (as described previously) are largely unchanged from prior years. Continuous improvement in processes are made annually by the business office after reviewing feedback from district staff.

Members of the business office manage budget processes. District administrators (i.e. Directors, Principals), with oversight from the business office, manage individual budget units (i.e. programs, schools). School bookkeepers and administrative assistants conduct day-to-day budget management.

July - Beginning of Fiscal Year

August - Board Sets Tax Rate

September - Monitor Current Year Budget

December - Board Establishes Budget

Assumptions for Following Year Budget

February - Budget Leaders Present

Proposed Budgets to Business & Human

Resources

June - Board Amends Current Budget, Adopts

Budget for Following Fiscal Year

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ALLOCATION OF FINANCIAL RESOURCES TO ACHIEVE GOALS AND OBJECTIVES

The allocation of resources to schools and programs begins with establishing funds available for the budget year. Targets for ending year operating, capital and debt service fund balances have been established by the Board of Education. These targets serve as guidelines on the total amount of funds that can be spent in the proposed budget year.

FUND BALANCES

The district maintains balances in three funds: Fund 100 - General (Incidental), Fund 300 - Debt Service, Fund 400 - Capital Projects. The Board of Education, Financial Focus Area Collaborative Team (FACT) and Missouri State Auditor have established targets for these balances for the current year, the budget year, and three fiscal years beyond the budget year to demonstrate financial sustainability and stability.

More information on funds, fund types and subfunds can be found beginning on page 20.

OPERATING FUND BALANCE

The Board of Education has established a guideline of maintaining a July 1 operating fund balance between 18 to 22% of prior year operating expenditures. This guideline is applied during the development of the budget, with an expectation that the operating fund balance at the end of the budget year falls within this approved range. In some years, this requires a deficit operating budget to spend down operating balances accumulated from prior years.

In addition, projections for revenue and expenditures are made for three fiscal years beyond the budget year. These projected years are expected to end with 18 to 22% operating fund balances.

The 2019-2020 budget has been prepared with an expectation of concluding the budget year with an operating balance of $33.2 million or 20.3%.

A full accounting of the operating fund balance for school years 2015-2016 through 2022-2023 appears in the Financial Section of this document on page 131.

CAPITAL FUND BALANCE

The district Financial Focus Area Collaborative Team (FACT), a team made up of district staff and key stakeholders, has established a target for capital fund balance between 65 and 85% of the average of the prior three-years capital expenditures. This fund balance allows the district to address the planned capital needs without revenues from the sale of general obligation bonds. The capital needs of the district can vary greatly from year to year as maintenance cycles for facility upkeep (i.e. school roofs, flooring, parking lots) converge with technology maintenance cycles (i.e. laptop, technology equipment replacements), and other one-time capital needs (playground upkeep).

The ending Capital Fund Balance percentage is calculated by dividing the amount of remaining non-restricted capital funds at the end of each fiscal year by the capital expenditures for that year. For example, if on June 30 the district had a capital fund balance of $5 million and had $10 million in capital expenditures on average for the prior three-years, the Ending Capital Fund Balance is 50%.

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The 2019-2020 budget has been prepared with an expectation of concluding the budget year with an 107.5% capital fund balance ($9.6 million). This falls outside of the target range of 65 to 85%. The balances above the range are expected to be spent down in future fiscal years to address the capital needs in these years.

A full accounting of the capital fund balance for school years 2015-2016 through 2022-2023 appears in the Financial Section of this document on page 181. The district’s capital plan can be found beginning on page 155.

DEBT SERVICE FUND BALANCE

The balance in the Debt Service Fund is highly predictable because expenditures usually consist of only two items (principal and interest) and are known in advance. Debt Service Fund monies are to be placed in a separate bank account and are not to be commingled with the district’s operating (General, Special Revenue, and Capital Projects Funds) monies. The State Auditor’s Office monitors the fund balance in the Debt Service Fund when calculating the maximum annual Debt Service Fund levy and will allow a “reasonable reserve” up to one calendar year's payment. It is important that the Debt Service Fund have enough reserves to prevent any default on the bonds.

The 2019-2020 budget has been prepared with an expectation of concluding the budget year with a debt service fund balance of $10.8 million. This amount meets the State Auditor’s definition of a reasonable reserve.

Future debt service fund balances have been planned based upon a plan of finance approved by the Board of Education when the sale of the Series 2018 bonds occurred in fall 2018.

A full accounting of the debt service fund balance for school years 2015-2016 through 2022-2023 appears in the Financial Section of this document on page 163 .

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OPERATING REVENUE

Revenue is typically reported to the State, Board of Education, and community by source: local, county, state, federal or non-current. Operating revenue is a portion of Total Revenue that excludes revenue generated by the debt service tax levy or revenue received from the sale of general obligation bonds.

Source

Estimated 2018-2019

Budget 2019-2020 ∆ (Change)

5100 - REVENUES FROM LOCAL SOURCES 113,142,297 112,952,203 -190,094 (-0.2%) 5200 - REVENUE FROM COUNTY SOURCES 5,000,183 5,117,939 +117,756 (+2.4%) 5300 - REVENUE FROM STATE SOURCES 41,074,959 42,869,546 +1,794,587 (+4.4%) 5400 - REVENUE FROM FEDERAL SOURCES 6,902,122 6,069,193 -832,929 (-12.1%) 5600 - NON-CURRENT REVENUE 45,298 46,378 +1,080 (+2.4%)

Grand Total 166,164,859 167,055,259 +890,400 (+0.5%)

Total operating revenue is budgeted to increase by 0.5% or $890,400 dollars. This relatively small increase in operating revenue is due to an anomaly in operating revenue in 2018-2019 where a large amount of disputed taxes was paid from a prior year, thus, inflating the revenue in 2018-2019 from the prior year. The two-year operating revenue growth from the 2017-2018 to the 2019-2020 budget is 9.2%, or 4.6% per year. An increase of 4.6% better represents the operating revenue growth represented within the 2019-2020 budget.

A full accounting of the actual and anticipated operating revenue for school years 2015-2016 through 2022-2023, including an explanation of major shifts from the current year, appears in the Financial Section of this document beginning on page 121.

5100 - LOCAL OPERATING REVENUE

Local operating revenue, which makes up 67.6 % of all operating revenue, is anticipated to decrease by 0.2% ($190,094) primarily due to

• a $2.7 million decrease in delinquent taxes. Approximately $3.5 million of protested tax payments originally due in January 2018 (fiscal year 2017-2018) were not paid until the 2018-2019 fiscal year as delinquent tax. This decrease negates the incremental increases found in the 2019-2020 budget in the following local and county revenue sources:

o an increase (+2.5%) in assessed valuation of property in the school district and with no change in the operating tax levy.

o an increase (+3.5%) in School District Trust Fund (Prop C) sales tax revenue distributed by the State based upon an anticipated student enrollment count and an increase in the per pupil allocation.

o an increase in Nutrition Services revenues based upon increased enrollment and participation.

5200 - COUNTY OPERATING REVENUE

County operating revenue, which makes up 3.1% of all operating revenue, is anticipated to increase in 2019-2020 by 2.4% ($117,756) primarily due to

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• a 1.5% increase in county fines and escheats within Platte County. This budgeted increase is consistent with growth seen in prior years.

• a 2.5% increase in state assessed railroad and utility taxes which are collected by and distributed to school districts by county. This budgeted increase is consistent with growth seen in prior years.

5300 - STATE OPERATING REVENUE

State operating revenue, which makes up approximately 25.6% of all operating revenue, is anticipated to increase by 4.4% ($1.7 million) primarily due to

• an increase in Basic Formula monies and Classroom Trust Fund because of increased student enrollment and the state adequacy target.

• an increase in Early Childhood (3 & 4-Year-Old) Special Education (ECSE) revenue based upon the state of Missouri fully funding the 2018-2019 ECSE program (revenue is based upon actual expenditures and is received the year following).

5300 - FEDERAL OPERATING REVENUE

Federal operating revenue, which makes up 3.6% of all operating revenue, is anticipated to decrease by 12.1% ($832 thousand) primarily due to

• an abnormally high amount received in 2018-2019 (due to a late payment from the federal government from the prior year) for IDEA entitlement funds.

• a decrease in Title I funds due to a decreased allocation and lack of carryover revenue from the Federal government.

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OPERATING EXPENDITURES

The following chart shows the 2019-2020 budgeted operating expenditures by object. Operating totals exclude bond and debt service expenditures. Total operating expenditures are budgeted at $172,919,086.

Expenditures are typically reported to the State, Board of Education, and community by object: salaries, employee benefits, purchased services, supplies and materials, capital outlay, and debt. Operating expenditures are the portion of Total Expenditures that excludes expenditures made for debt and any expenditure made from bond funds.

Total operating expenditures are expected to increase by 6.2% or $10.1 million dollars. Most of this increase is in employee salaries and benefits to support enrollment growth and to operate two new schools.

Source

Estimated 2018-2019

Budget 2019-2020 ∆

6100 - SALARIES 91,660,913 98,170,008 +6,509,095 (+7.1%)

6200 - EMPLOYEE BENEFITS 25,678,976 27,915,906 +2,236,930 (+8.7%)

6300 - PURCHASED SERVICES 17,910,126 20,764,235 +2,854,109 (+15.9%)

6400 - SUPPLIES AND MATERIALS 15,193,896 17,059,275 +1,865,379 (+12.3%)

6500 - CAPITAL OUTLAY 12,361,006 9,009,662 -3,351,344 (-27.1%)

Grand Total 162,804,917 172,919,086 +10,114,169 (+6.2%)

A full accounting of the operating actual and anticipated expenditures for school years 2015-2016 through 2022-2023, including an explanation of major shifts from the current year, appears in the Financial Section of this document beginning on page 123.

6100 - SALARIES, 98,170,008 , 57%

6200 - EMPLOYEE BENEFITS, 27,915,906 ,

16%

6300 - PURCHASED SERVICES, 20,764,235 ,

12%

6400 - SUPPLIES AND MATERIALS, 17,059,275 ,

10%

6500 - CAPITAL OUTLAY, 9,009,662 , 5%

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6100 - SALARIES

Employee salaries make up approximately 57% of all operating expenditures and are expected to increase by 7.1% ($6.5 million) primarily due to

• a projected increase of 108.1 Full-Time-Equivalent (FTE) staff members to open Hopewell Elementary, Walden Middle School and to address student enrollment growth and maintain class size and other staffing ratios.

• budgeted average compensation increases of 2.6% for returning staff members.

6200 - EMPLOYEE BENEFITS

Employee benefits make up approximately 16% of all operating expenditures and are expected to increase by 8.7% ($2.2 million) primarily due to

• a projected increase of 108.1 Full-Time-Equivalent (FTE) staff members to open Hopewell Elementary, Walden Middle School and to address student enrollment growth and maintain class size and other staffing ratios.

• a budgeted increase to insurance benefits of 3.0%. • an increase in the district’s contribution to retirement due to the increase in wages and FTE.

6300 - PURCHASED SERVICES

Purchased services make up 12.0% of all operating expenditures and are expected to increase by 15.9% ($2.9 million) primarily due to

• an increase in student transportation costs with First Student as outlined in the district’s contract as well as an increase in routes due to student enrollment growth.

• A projected increase in technology and facility repairs and maintenance.

6400 - SUPPLIES & MATERIALS

Supplies and materials make up 9.9% of all operating expenditures and are expected to increase by 12.3% ($1.9 million) primarily due to

• an increase in general supplies, classroom technology and textbooks due to student enrollment growth and start up costs to support opening Walden Middle School and Hopewell Elementary.

• an increase in utilities and fuel due to anticipated rate increases for electric, gas, water and diesel fuel (for buses).

6500 - CAPITAL OUTLAY (NON-BOND)

Capital Outlay makes up 5.2% of all operating expenditures and are expected to decrease by 27.1% ($3.3 million) primarily due to

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• a capital improvement plan similar in scope from the prior year but that incorporates bond funds (not included as a “operating” funds).

• planned expenditures outlined in the district’s Capital Improvement Plan (page 155).

ALLOCATION OF FINANCIAL RESOURCES TO SCHOOLS

For schools, per pupil allocations are made for supplies, services (i.e. field trips) and equipment based upon multiple factors, including

• projected student enrollment by grade. • student enrollment count in special programs such as Special Education, ESL, and Gifted. • students who qualify for free and reduced lunch through the National School Lunch Program. • students participating in high school extra-curricular activities (i.e. clubs, teams, etc.).

Program budgets are zero-based with the program leaders proposing new budgets based upon district goals and identified needs.

All proposed budgets are reviewed, revised and ultimately approved by senior leaders and Board of Education to ensure alignment with district goals.

ALLOCATION OF HUMAN RESOURCES TO MEET GOALS OF THE DISTRICT

HUMAN RESOURCES

Personnel costs, specifically salary and benefits, have consistently accounted for approximately 72 to 74% of the district’s annual operating expenditures. To provide support for the students, the district employs over 1,700 teachers, support personnel and administrators.

School board policy regarding class size plays a significant role in anticipating certified staff additions, as each school and class cohort are analyzed for the possibility of an increase or decrease in staff for the following year. For the 2017-2018 school year, the classroom student-to-teacher ratio was 18:1 and student to administrator ratio 240:1 (this data lags a year as DESE publishes these after the conclusion of each school year, 2018-2019 data is expected to be available in September 2019).

As a part of the district’s agreement with teachers, the district has established the following class size guidelines for specific grade levels:

• No more than twenty-three (23) students for Kindergarten and grade 1 • No more than twenty-five (25) students for grades 2 through 3 • No more than twenty-seven (27) student for grades 4 through 6 • No more than thirty (30) students for grades 7 through 12, except when state recommendations indicate

a larger allowable class size

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It is recognized that in some special situations a smaller class size may need to be considered.

Additions to support staff are based upon input from district staff and quantifiable service demands (i.e. work orders, overtime requests) on an annual basis during the budgeting process.

The district has centralized the staffing process through the district office, with individual school leaders working collaboratively with administration on staffing budgets. Funds for employee salaries and benefits are not included in allocations made to schools as these funds are budgeted and spent from district level accounts.

2019-2020 STAFFING BUDGET

The 2019-2020 Budget has been prepared with the following changes to staffing counts. All values are measured as Full-Time-Equivalents (FTEs).

Source 2018-2019

Budget 2019-2020 ∆

Administrator 56.0 63.0 +7.0 (+12.5%) Community Services 62.2 64.2 +2.0 (+3.2%) Instructional Support 170.9 187.6 +16.7 (+9.7%) Office Staff 114.1 113.6 -0.6 (-0.5%) Operations 201.1 224.7 +23.6 (+11.7%) Other Support 42.6 45.5 +2.9 (+6.8%) Student Health 24.7 26.7 +2.0 (+8.1%) Student Nutrition 68.2 77.8 +9.6 (+14.1%) Substitute Workers 2.1 1.2 -0.9 (-41.7%) Teacher 881.6 927.3 +45.7 (+5.2%)

Grand Total 1,623.5 1,731.6 +108.1 (+6.7%)

A detailed accounting of the staffing FTE counts for school years 2015-2016 through 2022-2023, including an explanation of major shifts from the current year, appears in the Informational Section of this document beginning on page 196.

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PARK HILL BOARD OF EDUCATION

Board President

Bart Klein

Board Vice President Kimberlee Ried

Board Treasurer Janice Bolin

Board Member Todd Fane

Board Member Scott Monsees

Board Member Susan Newburger

Board Member Kyla Yamada

Board Secretary Opal Hibbs

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PARK HILL ADMINISTRATIVE OFFICIALS

SUPERINTENDENT OF SCHOOLS AND SENIOR LEADERSHIP 2019-2020

Superintendent of Schools Dr. Jeanette Cowherd

Assistant Superintendent Business and Technology

Dr. Paul Kelly

Assistant Superintendent Academic Services

Dr. Jeff Klein

Assistant Superintendent Human Resources

Dr. Bill Redinger

Executive Director of Quality and Evaluation

Dr. Mike Kimbrel

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EXECUTIVE SUMMARY - FINANCIAL COMPONENT

Missouri state statutes require school districts to prepare an annual budget to provide a definite financial policy for the direction of business operations of a school district. The district Board of Education is to formally adopt this budget in June prior to the beginning of the new school term on July 1.

FUND STRUCTURE

Missouri statutes are very specific in certain areas of school finance. These laws prescribe the duties of the treasurer and secretary of the board of education, establish four funds which must be used in the accounting process, and place certain limits upon the use of revenue and expenditure transactions allowed in these funds. As a result, the utilization of available money is limited and the accounting process is similarly affected.

MISSOURI STATE STATUTES

Chapter 165, RSMo, provides that all school monies must be accounted for within a framework of four funds:

• 100 - Incidental Fund • 200 - Teachers Fund • 300 - Debt Service Fund • 400 - Capital Projects Fund

Governmental Accounting Standards Board (GASB) and Generally Accepted Accounting Principles (GAAP) requirements for fund accounting is detailed on page 81 this document.

FUND DESCRIPTIONS

The General (Incidental) Fund is used to account for all financial resources except those required to be accounted for in another fund. This fund accounts for transactions involving local taxes; Foundation Program payments such as Basic Formula, Transportation, Early Childhood Special Education, Career Ladder, Educational Screening Entitlement/PAT and Vocational/At-Risk; along with various other transactions associated with federal projects.

The Special Revenue (Teachers) Fund is used to account for revenue sources legally restricted to expenditures for the purpose of teachers’ salaries and benefits and tuition payments to other school districts.

The Debt Service Fund is used to account for the resources accumulated for and the payment of long-term debt. Amounts in the Debt Service Fund are generated from the Debt Service Fund tax levy and are used solely to retire bonded debt. While paying agent fees are always a legitimate expense of the Debt Service Fund, other expenses associated with the issuance of bonds are paid from the various funds (depending on whether the bond issue is a new issue or a refunding issue).

The Capital Projects Fund is used to account for all facility acquisition, construction, lease purchase principal and interest payments and other capital outlay expenditures.

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A Fiduciary (Student Activities) Fund is used to account for monies held by the school district in a trustee capacity for individual student groups. The school board is responsible for all student activity funds in the district. The primary criterion for determining how these funds should be classified should be “Who determines how the money is spent?” Thus, athletic funds would generally be classified as governmental funds, while funds for clubs and class activities generally would be included in fiduciary funds. Any student activity funds classified as governmental funds should be budgeted and controlled in the same manner as other governmental funds.

Additional detail on fund descriptions and requirements is detailed on page 82 this document.

FUND CODING

The overall account code structure is designed to standardize account coding across all district/charter schools. It creates a common language for use in controlling, recording, accumulating and reporting the activities of the school districts/charter schools, as well as, allowing for a common uniform record system to allow reporting of financial data in the Annual Secretary of the Board Report (ASBR).

The prescribed manner to numerically codes funds follows:

Fund 100 - General (Incidental). The purpose of this fund is to account for all transactions having to do with the operations of the school district’s/charter schools’ regular programs, except those required to be accounted for in another fund.

Fund 200 - Special Revenue (Teachers). The purpose of this fund is to account for revenue sources legally restricted for expenditures for salaries and benefits for teachers and tuition payments to other districts/charter schools, private schools, etc.

Fund 300 - Debt Service. The purpose of this fund is to account for all transactions affecting the value of the unpaid principal of bond issues, value of cash on deposit in the fund, the value of any temporary investments, the amount of current interest and principal requirements of long-term debt and paying agent fees.

Fund 400 - Capital Projects. The purpose of this fund is to account for all facility acquisition, construction, lease purchase principal and interest payments and all other capital outlay expenditures.

PARK HILL SCHOOL DISTRICT FUNDS & SUBFUNDS

The Park Hill School District accounts for revenues and expenditures in eight specific funds, which collapse into the four major funds listed below. The fund names and their numeric codes used within district accounting reports are described below:

100 - General (Incidental) Fund

• Subfund 101 – Operating. This subfund comprises the bulk of the school district/charter school revenues and expenditures in the General (Incidental) Fund and includes all transactions not addressed

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within one of the separate subfunds. This subfund will be merged with the 100 - General (Incidental) Fund for state reporting purposes.

• Subfund 105 – Student Activities. This is an interim fund only and includes all student activity transactions not identified in other funds and all athletic activities that are not a part of the regular instructional program. This subfund will be merged with the 100 - General (Incidental) Fund for state reporting purposes.

• Subfund 107 – Food Service. This fund is an interim fund only for those districts/charter schools operating a federally funded school lunch program consisting of local meal receipts, state matching money and federal food service funds. This is an enterprise activity with a unique set of general ledger accounts designed to determine profit and loss in a manner like commercial enterprises. This fund may require support from the General (Incidental) Fund. This subfund will be merged with the 100 - General (Incidental) Fund for state reporting purposes.

• Subfund 111 – Community Services. This is an enterprise activity with a unique set of general ledger accounts designed to determine profit and loss in a manner like commercial enterprises. The Park Hill School District uses this fund to track activity of the Pre-School program, School-aged Childcare, Community Education and activities associated with the district’s Aquatic Center (natatorium). This fund may require support from the General (Incidental) Fund. This subfund will be merged with the 100 - General (Incidental) Fund for state reporting purposes.

200 - Special Revenue (Teachers) Fund

• Subfund 202 – Special Revenue (Teachers). The purpose of this subfund is to account for revenue sources legally restricted for expenditures for salaries and benefits for teachers and tuition payments to other districts/charter schools, private schools, etc. This fund will be merged with the 200 - Special Revenue (Teachers) Fund for state reporting purposes.

300 - Debt Service Fund

• Subfund 303 – Debt Service. The purpose of this subfund is to account for all transactions affecting the value of the unpaid principal of bond issues, value of cash on deposit in the fund, the value of any temporary investments, the amount of current interest and principal requirements of long-term debt and paying agent fees. This fund will be merged with the 300 - Debt Service Fund for state reporting purposes.

400 - Capital Projects Fund

• Subfund 404 – Regular Capital Outlay. This subfund comprises the bulk of a school district’s/charter schools’ annual capital outlay transactions, whether for routine capital outlay purchases, lease purchase principal and interest payments, or facility acquisition and construction paid from annual revenues and/or fund balances. This fund will be merged with the 400 - Capital Projects Fund for state reporting purposes.

• Subfund 408 – Bond Proceeds’ Capital Outlay. This subfund comprises a school district’s capital outlay expenditures paid for with proceeds from the sale of bonds. This fund will be merged with the 400 - Capital Projects Fund for state reporting purposes.

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OPERATING BUDGET

Of the subfunds, only the following allow the district flexibility to control revenue and expenditures and are grouped together throughout this document and labeled as “operating funds” and as a part of the “operating budget”.

• 101 - Operating Subfund • 105 - Student Activities Subfund • 107 - Food Service Subfund • 111 - Community Services Subfund • 202 - Special Revenue (Teachers) Subfund • 404 - Regular Capital Outlay Subfund

TOTAL BUDGET

All subfunds are included when the district reports “total funds”, “total expenditures”, “total revenue” and “total budget”.

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OVERVIEW OF DISTRICT REVENUES

The Park Hill School District budget reports revenues by Total Funds and by Operating Funds. Total Fund reports include the four funds required by Missouri State law for school districts: 100-General (Incidental), 200-Special Revenue (Teachers), 300-Debt Service and 400-Capital Projects. Operating Funds include the following subfunds: 101-Operating, 105-Student Activities, 107-Food Service, 111-Community Services, 202-Special Revenue (Teachers), and 404-Regular Capital Outlay. Revenue detail is included to report the major sources of revenue and the proportion of those sources to the whole.

TOTAL REVENUE BY FUND

The table below compares the total revenue budget by fund utilizing actual values for 2017-2018, estimated year-end figures 2018-2019, and budgeted values for 2019-2020. In addition, the percent of revenue in the 2019-2020 budget is presented by fund, as well as the change from the 2018-2019 estimated values to the 2019-2020 budget.

ACTUAL ESTIMATED BUDGET PERCENT OF PERCENT FUND 2017-2018 2018-2019 2019-2020 REVENUE CHANGE

100-GENERAL (INCIDENTAL) 100,804,699 112,160,353 111,115,488 61.9% -0.9% 200-SPECIAL REVENUE (TEACHERS) 46,947,816 48,518,746 50,421,521 28.1% +3.9% 300-DEBT SERVICE 10,782,106 11,903,452 11,841,528 6.6% -0.5% 400-CAPITAL PROJECTS 96,168,080 32,142,144 6,258,250 3.5% -80.5%

Grand Total 254,702,702 204,724,695 179,636,787 100.0% -12.3%

DISCUSSION OF TOTAL REVENUE BY FUND

100-General (Incidental). The 0.9% decrease in revenue is budgeted in Fund 100-G

Documents

2019-2020 Park Hill School District Budget · i Park Hill School District BUDGET. 2019-2020 . Hawthorn Elementary students enjoying a beautiful spring day. Park Hill Board of Education