CEDAR FALLS COMMUNITY SCHOOL DISTRICT Annual District Financial Report December 10, 2018

Where to Begin - Legal Basics • Home Rule

• Governing body has authority to take any action as long as it is not prevented by state or Federal law

• Applies to cities and counties

• Dillon’s Rule • Governing body has the

authority to take action only if specifically stated in the law

• Applies to Iowa public school districts, AEA’s and community colleges

• 2017 passage of HF573 provides some “wiggle room” but did not grant full Home Rule status

Fund Accounting – CFCSD Funds

• General Fund • Includes Instructional Support Levy

• Management Fund • Capital Projects Fund (G.O. Bonds) • Secure A Vision for Education (Statewide 1¢ sales tax) • Physical Plant & Equipment Levy • Activity Fund • Nutrition Fund • Debt Service Fund • Trust & Agency Funds

Goals & Principals of Iowa School’s Foundation Formula (General Fund)

• Equity in expenditures • Property tax relief • Equalization of method of taxation

• Uniform state aid allocation formula

• Predictable

• Pupil-driven • Provide for local discretion and incentives

• ESTABLISHES MAXIMUM SPENDING CONTROL

• Same formula for all Iowa K-12 public schools and AEA’s

Four Key Factors Iowa Public School Foundation Formula

• 1. Enrollment • Number of students enrolled on October 1st determines budget and spending

authority for the following school year

• 2. Equalization • Legislature established a law that “cost per student” across the state will be

nearly equal to ensure every student equal access to a quality education

FY18 Iowa Public Schools District Cost per Pupil

0

20

40

60

80

100

120

140

160

180

FY18 District Cost per Pupil

Cedar Falls = $6,671

162 = $6,664 per pupil 171 > $6,664 per pupil

FY18 Iowa Public Schools District Cost per Pupil

$6,640

$6,660

$6,680

$6,700

$6,720

$6,740

$6,760

$6,780

$6,800

$6,820

$6,840

$6,860

FY18

Dis

tric

t Cos

t per

Pup

il

Cedar Falls

162 = $6,664 per pupil 172 > $6,664 per pupil

Four Key Factors Iowa Public School Foundation Formula

• 3. Supplemental State Aid Growth (SSA) • Legislature & Governor control the annual increase in dollars available per

student • Basically the State Foundation Formula is the Cost per Student x State percent of

growth (SSA) x Oct. 1st enrollment • State foundation formula sets the expenditure ceiling for each school

district’s total spending authority and tells the school district how to fund its spending authority.

Spending Authority (General Fund) • Spending Authority is similar to the maximum limit on a credit

card. • Maximum limit does not necessarily mean you have the cash to

spend to that limit. • Spending authority is a calculation. It does not generate its own

cash. • Any unused spending authority (permission) carries forward to the

following fiscal year.

Spending Authority Calculation (General Fund)

• Combined District Cost • + SBRC Dropout Prevention • + SBRC Allowable Growth (increased enrollment, ELL, other misc.) • + SBRC Special Education Deficit Allowable Growth • + 4 yr. old pre-school funding • + Instructional Support Levy • + Other miscellaneous income • + Previous year unspent budget authority • = Maximum Authorized Budget • - Expenditures • = Unspent Authorized Budget Balance

Cedar Falls CSD Unspent Authorized Budget Worksheet Line 32 = Legal Limit on General Fund Spending

Authority Data Source Actual FY15 Actual FY16 Actual FY17 Actual FY18

1 Formula AidLevy 4.3/5.1 Regular Program District Cost 30,967,044 31,666,807 33,333,756 34,334,3032 Formula AidLevy 4.8/5.2 Regular Program Budget Adjustment + 0 0 0 03 Formula AidLevy 4.11/5.3 Supplementary Weighting District Cost + 439,278 466,358 506,291 494,0284 Formula AidLevy 4.14/5.4 Special Ed District Cost + 3,659,185 3,889,933 4,043,914 4,601,7235 Formula AidLevy 4.22/5.5 Teacher Salary Supplement District Cost + 2,611,037 2,670,602 2,812,555 2,897,7006 Formula AidLevy 4.30/5.6 Professional Development Suppl District Cost + 310,837 317,748 334,297 344,2187 Formula AidLevy 4.38/5.7 Early Intervention Supplement District Cost + 308,650 315,883 332,984 343,2408 Formula AidLevy 4.46/5.8 Teacher Leadership Supplement District Cost + 0 0 0 1,663,8069 Formula AidLevy 4.49/5.9 AEA Special Ed Support + 1,538,702 1,579,693 1,660,185 1,729,212

10 Formula AidLevy 4.54/5.10 AEA Special Ed Support Adjustment + 0 0 0 011 Formula AidLevy 4.60/5.11 AEA Media Services + 270,542 277,293 291,378 298,65912 Formula AidLevy 4.63/5.12 AEA Educational Services + 302,249 309,759 325,389 333,46513 Formula AidLevy 4.66/5.13 AEA Sharing District Cost + 0 0 0 014 Formula AidLevy 4.74/5.14 AEA Teacher Salary Suppl District Cost + 196,413 201,174 210,511 218,81515 Formula AidLevy 4.82/5.15 AEA Professional Dev Suppl District Cost + 22,548 23,087 24,190 25,15616 Board/SBRC AidLevy 5.17 SBRC Modified Suppl Amt Dropout Prev + 744,414 738,732 773,047 828,14917 Board/SBRC SBRC SBRC Modified Supplemental Amt Other #1 + 80,675 102,442 100,596 98,07918 Board/SBRC SBRC SBRC Modified Supplemental Amt Other #2 + 314,189 942,912 634,990 136,96919 SBRC SBRC/DE Special Ed Deficit Modified Suppl Amt + 675,685 807,534 972,951 467,28320 SBRC SBRC/DE Special Ed Positive Balance Reduction - 0 0 0 021 Board/SBRC SBRC/DE AEA Special Ed Positive Balance - 0 0 0 022 Board/SBRC SBRC Allowance for Construction Projects + 0 0 0 023 SBRC SBRC Unspent Allowance for Construction - 0 0 0 024 Auditor AidLevy 5.18 Enrollment Audit Adjustment + 0 0 -17,810 025 Calculated AidLevy 5.16 AEA Prorata Reduction - 198,163 198,163 231,049 198,16326 Calculated Calculated Maximum District Cost = 42,243,285 44,111,794 46,108,175 48,616,64227 Board/Vote AidLevy 7.35 Total Preschool Foundation Aid + 388,324 412,544 425,120 476,47628 Board/Vote AidLevy 10.27 Instructional Support Authority + 2,399,326 2,444,994 2,549,366 2,660,56529 Board AidLevy 11.3 Ed Improvement Authority + 0 0 0 030 Board See Note 1 Other Miscellaneous Income + 7,446,734 5,873,635 7,673,278 5,942,89431 Calculated Calculated Unspent Auth Budget - Previous Year + 9,191,056 8,630,990 8,609,170 8,533,64832 Calculated Calculated Maximum Authorized Budget = 61,668,725 61,473,957 65,365,109 66,230,22533 Board See Note 2 Expenditures - 53,037,735 52,864,787 56,831,461 58,534,53334 Calculated Calculated Unspent Authorized Budget (UAB) = 8,630,990 8,609,170 8,533,648 7,695,692

Four Key Factors Iowa Public School Foundation Formula

• 4. Balance • The ratio of property tax & state aid supporting a district’s budget varies by

district. “Property rich districts” will receive less state aid. • Uniform Levy - $5.40/$1,000 • State Foundation Percentage – to 87.5% level • Supplemental State Aid – covers property tax increase as a result of an increase

in “cost per pupil” • Additional Levy – varies from district to district

12.57% $ 838 per Student

Additional Levy Combined District Cost – Foundation Dollar Level

62.82% $4,191 per Student

State Foundation Aid = Foundation Dollar Level – Uniform Levy Foundation dollar cost per pupil as set by the State of Iowa x Weighted Enrollment - Uniform Levy

+ SSA Prop Tax Replacement Payment

24.61% $1,642 per Student

Uniform Levy = $5.40 per $1,000 assessed valuation x school district assessed valuation

Cedar Falls 2017/18 Cost per Pupil = $6,671

Other District Funds

• All other District funds are restricted (specific purpose) • Cannot be used to support the General Fund

• Management • Capital Projects (New beginning in FY17) • Secure A Vision for Education (SAVE) (Statewide 1¢ sales tax) • Physical Plant & Equipment Levy • Activity • Nutrition • Debt • Agency & Trust

Purpose • This report will provide information on:

• Individual fund revenue & expenditures • Individual fund balances • General Fund key financial indicators

General Fund Key Financial Indicators

• The Iowa Association of School Boards (IASB) has developed key financial indicators to create a snapshot of a District’s financial health

• Key General Fund dashboard indicators include: • #1 Certified Enrollment • #2 Financial Solvency Ratio • #3 Unspent Budget Authority

• #3A Unspent Budget Authority Ratio • #4 Annual Unspent Budget Authority Ratio • #5 Salaries & Benefits to Total Budget Ratio • Background Color

• Green = Increase of 0.01% or greater • Yellow = 0.00 to 5.00% decrease • Orange = Greater than 5.00% decrease

Enrollment History Key Trend Dashboard Indicator #1

4,000

4,200

4,400

4,600

4,800

5,000

5,200

5,400

5,600

10/2011 10/2012 10/2013 10/2014 10/2015 10/2016 10/2017 10/2018

Stud

ents

Certified Enrollment OE In Tuition In

Increase of 9.5% over the last 8 years. 4 year old pre-school students not included.

Iowa Schools Certified Enrollment Percentage Oct. 2007 to Oct. 2017

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103

109

115

121

127

133

139

145

151

157

163

169

175

181

187

193

199

205

211

217

223

229

235

241

247

253

259

265

271

277

283

289

295

301

307

313

319

325

330

Cedar Falls - 17.46% increase 22nd largest increase in Iowa

CFCSD Enrollment Projections

4,500

4,700

4,900

5,100

5,300

5,500

5,700

5,900

6,100

6,300

Oct2007

Oct2008

Oct2009

Oct2010

Oct2011

Oct2012

Oct2013

Oct2014

Oct2015

Oct2016

Oct2017

Oct2018

Oct2019

Oct2020

Oct2021

Oct2022

Oct2023

Oct2024

Oct2025

Oct2026

Stud

ents

Projected ActualRSP & Associates projections – Updated Jan. 2017

CAR General Fund Balance

$10.95 $12.26

$14.04 $13.34

$11.94 $11.89 $12.16

$5.37 $6.33

$8.02 $7.10

$5.48 $4.88 $5.27

$0

$2

$4

$6

$8

$10

$12

$14

$16

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mill

ions

Total Assets (Cash/Receivables/Inventory) Fund Balance (Assets less Payables)$275,119 increase in cash on hand and $393,177 increase in fund balance.

General Fund Revenue/Expenditure History Includes Instructional Support Fund

$46.33

$50.44 $53.68 $52.12

$51.25

$56.22 $58.93

$45.15

$49.49 $51.99

$53.04 $52.86

$56.83 $58.53

$30

$35

$40

$45

$50

$55

$60

$65

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mill

ions

Revenue Expenditures

Revenue increased by $2,702,918 and expenditures increased by $1,703,092 from 2016-17 to 2017-18.

ISL (only) Revenue/Expenditure Detail

$2.15 $2.20

$2.36 $2.41 $2.52

$2.61 $2.74

$2.12 $2.01 $2.06 $2.07

$2.29

$2.08

$2.27

$1.0$1.2$1.4$1.6$1.8$2.0$2.2$2.4$2.6$2.8$3.0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mill

ions

Revenue Expenditures

History of General Fund Revenue

$16.14 $17.18 $19.13 $17.51 $17.21 $18.62 $20.85

$3.20 $6.99 $7.04

$5.20 $3.58 $3.67 $3.65

$24.62 $24.48

$25.33 $27.33 $28.30

$31.65 $32.31

$2.36 $1.79

$2.18 $2.08 $2.15 $2.28

$2.12

$0$5

$10$15$20$25$30$35$40$45$50$55$60

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mill

ions

Local - Prop Tax Local - Other State Federal

History of General Fund Revenue

34.85% 34.05% 35.64% 33.60% 33.58% 33.12% 35.38%

6.91% 13.86% 13.11% 9.97% 6.99% 6.53% 6.19%

53.15% 48.55% 47.19% 52.44% 55.23% 56.29% 54.83%

5.10% 3.55% 4.06% 3.99% 4.20% 4.06% 3.60%

0%10%20%30%40%50%60%70%80%90%

100%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Local - Prop Tax Local - Other State Federal

Due to rounding percentages may not total 100.0%

Financial Solvency Ratio Key Trend Dashboard Indicator #2

10.69% 11.90%

13.66% 12.59%

9.78%

7.94% 8.42%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Assigned & unassigned fund balance/General fund revenue less AEA flow thru. Measures the District’s fund equity position. IASB recommended minimum 5%. Goal 10%

History of Unspent Budget Authority (In Dollars) Key Trend Dashboard Indicator #3

$7.89

$8.89 $9.19 $8.63 $8.61 $8.53

$7.70 $7.26

$8.34 $8.13 $7.83 $7.93 $7.96 $7.19

$0.0$1.0$2.0$3.0$4.0$5.0$6.0$7.0$8.0$9.0

$10.0

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Mill

ions

Total Unspent Authority Unassigned/Unrestricted Unspent Authority

History of Unspent Budget Authority Ratio Key Trend Dashboard Indicator #3A

14.87% 15.23% 15.02% 14.00% 14.00%

13.06% 11.62%

13.69% 14.28% 13.28% 12.69% 12.89%

12.17% 10.86%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Total Unspent Authority Ratio Unassigned/Unrestricted Unspent Authority Ratio

A goal of 10% unassigned/unrestricted unspent authority over expenditures ($6.62 million) is desired. District is at 10.86% for 2017-18.

Annual Unspent Budget Authority Ratio Key Trend Dashboard Indicator #4

2.92%

1.98%

0.58%

-1.07%

-0.04% -0.13%

-1.45%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2012 2013 2014 2015 2016 2017 2018

Measures the annual amount in UAB as a percentage of expenditures each year.

Net Fund Balance As a Percentage of Unspent Authority

40%

45%

50%

55%

60%

65%

70%

75%

80%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Measures the percent of the District’s ability to finance it’s unspent budget authority.

General Fund - Days Net Cash Ratio

60

65

70

75

80

85

90

6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 6/30/17 6/30/18

Day

s

Cash & investments/Avg. daily cash expenditures. A goal of 90 days is desired.

Net Fund Balance As a Percentage of Expenditures

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18Measures the percent of the District’s cash available to cover non-funded months. – Goal 10%

Salaries & Benefits to Total Expenditures Ratio Key Trend Dashboard Indicator #5

77.85%

74.33% 74.74%

78.77%

80.30% 80.07% 79.89%

81.66%

82.64%

83.80% 83.77%

73.0%

75.0%

77.0%

79.0%

81.0%

83.0%

85.0%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Measures the percent of the District’s budget dedicated to labor costs.

History of Assessed Valuation

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

$2.2

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Billi

ons

Basic Valuation Valuation w/ TIF

Basic Valuation increased 10.35% from FY17 to FY18 & 54.70% over the past 10 years. Valuation w/ TIF increased 3.19% from FY17 to FY18 & 45.13% over the past 10 years.

General Fund Combined District Cost Property Tax/State Aid History

62.84% 61.79% 58.83%

63.08% 63.76% 63.93% 62.82%

37.16% 38.21% 41.17%

36.92% 36.24% 36.07% 37.18%

20%25%30%35%40%45%50%55%60%65%70%

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18State Aid Property Tax

Financial Dashboard – All Iowa Schools Oct. 1, 2017 Certified Enrollment

Rank = 17th Largest CF = 5,127.5 (10/1/17) 5,237.6 (10/1/18)

1 330

FY17 Solvency Ratio

Rank = 288 out of 330 State Avg. = 17.83% CF = 7.94% Fy17 8.42% Fy18

+102.6% -4.5%

FY17 UBA Per Pupil

Rank = 264 out of 330 State Avg. = $3,178 CF = $1,658 Fy17 $1,501 Fy18

+$24,488 -$262

FY18 Valuation per Pupil

Rank = 176 out of 330 State Avg. = $407,725 CF = $365,653 Fy18 $380,734 Fy19

$1,260,406 $162,804

FY18 General Fund Tax Rate

Rank = 130 out of 330 State Avg. = $10.7290 CF = $11.0437 Fy18 $10.8045 Fy19

$7.0230 $17.7800

FY18 Total Tax Rate

Rank = 127 out of 330 State Avg. = $13.7444 CF = $14.2727 Fy18 $13.9469 Fy19

$7.7993 $21.5783

Financial Dashboard – 25 Largest Iowa Schools Oct. 1, 2017 Certified Enrollment

Rank = 17th Largest CF = 5,127.5 (10/1/17) 5,237.6 (10/1/18)

1 (33,057.4) 25 (3,723.4)

FY17 Solvency Ratio

Rank = 21 out of 25 Average = 13.09% CF = 7.94% Fy17 8.42% Fy18

+22.5% +2.8%

FY17 UBA Per Pupil

Rank = 12 out of 25 Average = $1,960 CF = $1,658 Fy17 $1,501 Fy18

+$4,567 -$262

FY18 Valuation per Pupil

Rank = 5 out of 25 Average = $298,955 CF = $365,653 Fy18 $380,734 Fy19

$595,820 $168,466

FY18 General Fund Tax Rate

Rank = 4 out of 25 Average = $12.8352 CF = $11.0437 Fy18 $10.8045 Fy19

$8.5598 $16.1685

FY18 Total Tax Rate

Rank = 4 out of 25 Average = $16.0402 CF = $14.2727 Fy18 $13.9469 Fy19

$13.2687 $19.4837

General Fund Tax Rate

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Per $

1,00

0 A

sses

sed

Valu

atio

n

Cedar Falls 25 Largest Avg State Avg

Total Tax Rate

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

2014 2015 2016 2017 2018 2019

Per $

1,00

0 A

sses

sed

Valu

atio

n

Cedar Falls 25 Largest Avg State Avg

Net Assessed Value per Student

$250,000

$270,000

$290,000

$310,000

$330,000

$350,000

$370,000

$390,000

$410,000

$430,000

$450,000

2013 2014 2015 2016 2017 2018Cedar Falls 25 Largest Avg State Avg

TIF Valuation Not Included

History of Supplemental State Aid (Allowable Growth)

0%

1%

2%

3%

4%

5%

6%

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

State Avg. Cedar Falls One Time Funds

Other District Funds (Restricted) • Other District funds:

• Management • Capital Projects Fund • Secure A Vision for Education (SAVE) (Statewide 1¢ sales tax) • Physical Plant & Equipment Levy (PPEL) • Debt • Activity • Nutrition

• These are restricted use funds that are subject to laws and regulations established by the Code of Iowa and Iowa Administrative Code.

• Definitions: • Total Assets = Cash, Receivables and Inventory on hand. • Fund Balance = Total Assets minus Payables and Accrued Expenses due.

Management Fund • Restricted fund

• Board of Education Controlled • Used for property/liability/auto/workers compensation/etc. insurance

premiums • Property loss (deductible only) • Unemployment payments • Early severance benefits (not used)

Management Fund $1,145 $1,209

$1,071 $1,005 $948 $942

$1,074 $1,127 $1,200

$1,063 $1,000

$938 $933

$1,072

$300$400$500$600$700$800$900

$1,000$1,100$1,200$1,300

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Thou

sand

s

Total Assets Fund Balance

Secure A Vision for Education (SAVE) Formally Local Option One Cent Sales Tax

• Restricted fund • Construction, remodeling, repairing and furnishing of new or existing

buildings • Purchase or improve school grounds • Procure or open roads to buildings • Emergency repairs • Payment of principle and interest or retirement of general obligation bonds

SAVE - Revenue/Expense History •

Fiscal Year Ending June 30

Beginning Balance

Sales Tax Revenue Interest

Sale of BAN's/ Bonds

Other Revenue

Total Available

Project Expense

BAN/Bond Payment

(P & I) EOY Balance

Less Req. Bond

ReserveNet

Available

2000 $3,398 $2,389,728 $63,619 $5,000,000 $0 $7,456,745 $656,624 $0 $6,800,1212001 $6,800,121 $3,139,300 $515,092 $680,967 $11,135,480 $2,804,086 $250,300 $8,081,0942002 $8,081,094 $3,289,359 $445,141 $357,970 $12,173,564 $5,800,954 $250,300 $6,122,3102003 $6,122,310 $3,415,544 $356,005 $331,387 $10,225,246 $3,224,358 $5,250,300 $1,750,5882004 $1,750,588 $3,575,011 $22,946 $118,184 $5,466,729 $1,250,748 $0 $4,215,9812005 $4,215,981 $3,418,807 $85,233 $235,256 $7,955,277 $3,983,234 $0 $3,972,0432006 $3,972,043 $4,090,224 $217,071 $5,046,303 $3,300 $13,328,941 $8,263,024 $147,594 $4,918,3232007 $4,918,323 $3,839,801 $260,884 $0 $9,019,008 $2,256,054 $175,400 $6,587,5542008 $6,587,554 $4,376,493 $272,527 $0 $11,236,574 $2,265,992 $5,175,400 $3,795,1822009 $3,795,182 $4,516,507 $170,853 $10,016,194 $17,500 $18,516,236 $3,547,264 $240,564 $14,728,4082010 $14,728,408 $4,514,284 $186,794 $56,616 $19,486,102 $13,258,036 $265,682 $5,962,3842011 $5,962,384 $3,607,002 $44,403 $20,500,000 $1,365 $30,115,154 $5,119,637 $10,563,845 $14,431,672 $1,834,533 $12,597,1392012 $14,431,672 $3,672,221 $85,127 $20,900 $18,209,920 $4,925,138 $1,835,232 $11,449,550 $1,834,533 $9,615,0172013 $11,449,550 $4,468,108 $48,818 $0 $15,966,476 $8,731,307 $1,770,141 $5,465,028 $1,834,533 $3,630,4952014 $5,465,028 $4,227,019 $49,678 $9,999,287 $39,920 $19,780,932 $7,415,222 $3,331,454 $9,034,256 $2,829,533 $6,204,7232015 $9,034,256 $4,613,875 $35,647 $0 $13,683,778 $1,958,675 $3,272,592 $8,452,511 $2,829,533 $5,622,9782016 $8,452,511 $4,682,586 $41,635 $1,398 $13,178,130 $341,056 $2,775,355 $10,061,719 $2,829,533 $7,232,1862017 $10,061,719 $4,831,500 $52,038 $0 $14,945,257 $1,781,175 $4,979,369 $8,184,713 $995,000 $7,189,7132018 $8,184,713 $4,791,570 $113,601 $1,450,319 $14,540,203 $1,812,585 $3,557,801 $9,169,817 $995,000 $8,174,817

Totals $75,458,939 $3,067,112 $50,561,784 $3,315,082 $79,395,169 $43,841,329

Secure A Vision for Education (SAVE) Formally Local Option One Cent Sales Tax

$12.46

$6.12

$9.65

$8.47

$10.26

$8.19 $9.21

$11.45

$5.47

$9.03 $8.45

$10.06

$8.18 $9.17 $9.62

$3.63

$6.20 $5.62

$7.23 $7.19 $8.17

$2

$4

$6

$8

$10

$12

$14

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Mill

ions

Total Assets Fund Balance Unrestricted Fund Balance

History of SAVE Fund Expense (2000 to 2018)

High School 9.81%

Cedar Heights 9.53%

District Wide/Legal 0.27% Hansen

17.00%

Holmes 14.93%

Lincoln 12.28%

North Cedar 0.64%

Orchard Hill 1.98%

Peet 15.43%

Southdale 14.23%

Aldrich 2.31%

New High School 1.60%

Statewide School Infrastructure Sales & Service Tax Projected Future Fund Balance (Cash Basis)

$9.17 $9.33

$5.38

$2.79

$4.29 $5.47

$6.88 $8.07

$9.49

$10.72

$12.18

$8.17 $8.33

$4.38

$1.79

$3.29 $4.47

$5.88 $7.07

$8.50

$9.72

$12.18

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23

Mill

ions

Total Fund Balance Net Available Fund Balance

As of November 2018. Projections do not include future projects.

Outstanding Revenue Bond Debt

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Jun 302018

Jun 302019

Jun 302020

Jun 302021

Jun 302022

Jun 302023

Jun 302024

Jun 302025

Jun 302026

Jun 302027

Jun 302028

Jun 302029

Bal

ance

due

as

of J

une

30

Series 2013 $9.95 Million (2.375% TIC) Series 2016 $15.58 Million Refi (2.100% TIC)

Series 2013 bonds are now callable

Series 2016 bond callable at par after Dec. 31, 2021

Physical Plant & Equipment Levy (PPEL) • Restricted fund with two parts

• Board of Education Controlled – up to $0.33/$1,000 (regular) • Voter approved additional $1.34/$1,000 levy

• Voters approved extension of levy on December 6, 2016 • Levy now expires at the end of the 2027-28 school year

• Can be used for: • Purchase or improvement of grounds • Construction, repairing or remodeling of schoolhouses or roads to schoolhouses

including debt for same • Purchase or lease of equipment greater that $500 per unit

• Technology bundling included • Purchase or lease of school buses or other vehicles • Leasing or renting of facilities

Physical Plant & Equipment Levy (PPEL)

$2.23

$2.83 $2.80

$3.42 $3.40

$4.06 $4.18

$1.54

$2.68

$2.29

$2.79

$3.18

$3.83 $3.99

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Mill

ions

Total Assets Fund Balance

Debt Service Levy • Voters of a school district may approve bonded indebtedness for a

period of up to 20 years • Proceeds from the sale of General Obligation Bonds are

deposited in the Capital Project Fund (31) to be used for the cost of the approved project

• Revenue from the Debt Service Levy (40) are deposited in the Debt Service Fund to be used to retire principal and interest on the bonds

Debt Service Levy

$0

$50

$100

$150

$200

$250

$300

$350

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Thou

sand

s

Total Assets Fund Balance

Outstanding General Obligation Bond Debt

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Jun30

2018

Jun30

2019

Jun30

2020

Jun30

2021

Jun30

2022

Jun30

2023

Jun30

2024

Jun30

2025

Jun30

2026

Jun30

2027

Jun30

2028

Jun30

2029

Jun30

2030

Jun30

2031

Jun30

2032

Jun30

2033

Jun30

2034

Jun30

2035

Jun30

2036

Bal

ance

due

as

of J

une

30

Series 2017 $32.00 Million (3.078% TIC)

20 year bond paid in 19 years. Bonds callable after 6/30/2026

Projected Current Debt Service Tax Rate

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36

Tax

Rat

e pe

r $1,

000

Ass

esse

d Va

lue

1% Annual Assessed Value Increase 2% Annual Assessed Value Increase 3% Annual Assessed Value Increase

Total District assessed valuation has increased an average of 2.17% over the last 5 years, 4.08% over the last 10 years.

Bonds callable after 6/30/2026

Activity Fund • Restricted fund

• Account for student-related activities • Admissions • Activity Fees • Student Dues • Student Fund Raising Events • Student related co-curricular or extra-curricular activities

Activity Fund

$588

$629 $608

$580

$638

$603

$545 $584

$615

$571 $568

$612

$585

$528

$400

$450

$500

$550

$600

$650

$700

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Thou

sand

s

Total Assets Fund Balance

Nutrition Fund • Restricted fund

• Considered an Enterprise Fund • Business type activity

• Fund for which a fee is charged to external users for good or services

• Account for all transactions for nutrition programs authorized under Iowa Code Chapter 283A

Nutrition Fund

$794 $788 $723 $721 $721

$877

$1,297

$730 $722 $647 $634

$350 $491

$532 $634

$770

$973

$300

$500

$700

$900

$1,100

$1,300

$1,500

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Thou

sand

s

Total Assets Fund Balance Fund Balance w/o Pension

Summary • As of June 30, 2018

• District’s financial condition: • District General Fund cash balance

• Increase of $275,115 from June 30, 2017 • Days Net Cash Ratio 70 – unchanged from 6/30/17

• Unspent budget authority (UBA) decreased by $837,976 • UBA Ratio 13.06% FY17 11.62% FY18 • UBA will decrease in FY19 & FY20 with the opening of Aldrich Elementary

• District applied to the School Budget Review Committee for initial staffing & supply costs

• Increases in enrollment without increases in supplemental state aid (allowable growth) puts more pressure on general fund • Continued requirements and changes in enrollment and curriculum may

necessitate additional staff

Summary • Special Education

• District continues to meet the needs of students • Medicaid funding helped reduce special education expenses

• Net FY18 receipts = $1,109,034 • FY18 deficit = $467,283 • Projected FY19 deficit = $520,448

Summary • We must continue to closely monitor budget and funding changes

in order to make decisions that • Maintain a positive learning environment • Maintain a positive financial condition

Special thank you to • Business Office Staff:

• Denelle Gonnerman • Jana Speck • Lisa Voves • Michelle Weber • Lori Wiley • and Carrie DeBerg

• Administration • Board of Education

• Questions?