Minooka 201 Financial Projections 19 Jan 2012

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Minooka School District 201Finance CommitteeJanuary 19, 2012

Updated Financial ProjectionsPresented by Al Gegenheimer, Superintendent


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January 19, 2012 - Agenda

WelcomePurpose of the Committee

2011 Levy Abatement

Review Updated Financial Projections

Set Next Meeting Date

Adjourn at 8:00 P.M.


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Purpose of Committee

Education: The committee will learn aboutSchool Finance and the critical issuesconfronting the school community.

Feedback: The committee will providefeedback to the Board and administration.

Advisory: The committee will serve as an

advisory committee to the Board ofEducation.


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Where are we now?

A review of the past gives usinsight into the future

Financial History

+ Assumptions= Financial Projections


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Assessed Value

History

Levy Year EAV % Increase

2001 $350,908,619 23.04%

2002 $446,728,329 21.45%

2003 $492,048,449 9.21%

2004 $546,660,396 9.99%

2005 $578,047,798 5.43%

2006 $665,802,675 13.18%

2007 $807,459,788 17.54%

2008 $876,709,777 7.9%

2009 $891,881,592 1.7%

2010 $842,805,535 -5.82% 5


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Historic Total Tax Rates

& Total ExtensionsLevy Year Total Tax Rate Extension

2001 $2.9704 $10,423,3892002 $2.8053 $12,532,069

2003 $2.7908 $13,732,088

2004 $2.9643 $16,204,6542005 $2.9344 $16,962,234

2006 $2.8518 $18,987,360

2007 $2.8184 $22,757,4462008 $2.8684 $25,147,571

2009 $2.9295 $26,127,968

2010 $2.9544 $24,983,642 6


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Historic Education Fund RevenueAcademic

YearEducationFund Levy

OtherRevenue

Total

Revenue2001/02 $5,647,127 $1,720,328 $7,367,455

2002/03 $6,298,106 $2,628,485 $8,926,591

2003/04 $8,057,236 $3,242,222 $11,299,458

2004/05 $9,214,231 $3,832,931 $13,047,162

2005/06 $10,540,853 $4,615,904 $15,156,757

2006/07 $11,079,629 $4,945,267 $16,024,896

2007/08 $13,082,776 $8,262,826 $21,345,602

2008/09 $13,764,572 $6,298,303 $20,062,875

2009/10 $13,865,248 $6,859,400 $20,724,648

2010/11 $13,183,832 $7,390,876 $20,574,708 7


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Historic Education Fund ExpensesAcademic

YearSalaries and

Benefits

OtherCosts

Total

Expenses

2001/02 $5,695,060 $1,556,982 $7,252,042

2002/03 $6,185,142 $2,285,940 $8,471,082

2003/04 $7,168,754 $2,705,387 $9,874,141

2004/05 $8,069,080 $3,595,256 $11,664,336

2005/06 $8,871,932 $3,959,300 $12,831,232

2006/07 $10,998,055 $4,724,985 $15,723,040

2007/08 $12,762,620 $5,538,332 $18,300,952

2008/09 $14,092,210 $5,252,670 $19,344,880

2009/10 $16,384,095 $6,474,058 $22,858,153

2010/11 $15,736,253 $6,838,674 $22,574,9278


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Revenues/ExpensesHistory

(amount is per $1,000,000)

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

FY2002 FY2004 FY2006 FY2008 FY2010

$7.37$8.93

$11.30$13.05

$15.15

$16.02

$21.35

$20.06$20.72 $20.57

$7.25

$8.47$9.87

$11.66

$12.83$15.72

$18.30

$20.13

$22.86$22.57

Revenues

Expenses


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Surplus/Deficit FY2002-FY2011(amount is per $1,000,000)

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Financial Projections

January 18, 2012


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Significant Assumptions:1. All costs will increase at an average rate of ~3% annually.2. Assessed valuation will lay flat for three years then grow at a

rate of ~3% per year.

3. Other Revenue will increase at a rate of 1% per year, dueprimarily to GSA funding formula.

4. Levy revenue recognized will be 50% of the current year and50% of the prior year levy.

5. For projection purposes other expenses will continue to run atan average of 47% of salary and benefit costs.6. Benefits as a percentage of salary costs will increase of 1

percent per year.

7. Education Fund includes: Tort Levy, Lease Levy, and Special

Education Levy.8. Increase in Tort revenue due to refinancing.9. Gradual increase in the total tax rate after 2011 levy.


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Assessed Value

Projections

Levy Year EAV % Increase2011 $842,805,535 0%

2012 $842,805,535 0%

2013 $842,805,535 0%2014 $868,089,701 3%

2015 $894,132,392 3%

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Total Tax Rate ProjectionsTax rate will be less than $2.9643 for five years (2007-2011).

Levy Year Total Tax Rate Extension2011 ~$2.9600 ~$25,000,000

2012 ~$2.9600? ~$25,500,000

2013 ~$2.9600? ~$25,830,0002014 ~$2.9600? ~$26,860,000

2015 ~$2.9600? ~$27,920,000

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Projected Education Fund

Revenue

AcademicYear EducationFund Levy OtherRevenue TotalRevenue

2011/12 $15,275,260 $7,464,785 $22,740,045

2012/13 $16,261,933 $7,539,433 $23,801,3652013/14 $16,350,427 $7,614,827 $23,965,254

2014/15 $16,595,684 $7,690,975 $24,286,659

2015/16 $17,093,554 $7,767,885 $24,861,439

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Projected Education Fund

Expenses

AcademicYear Salaries andBenefitsOtherCosts TotalExpenses

2011/12 $16,321,075 $6,706,889 $23,027,965

2012/13 $16,932,630 $6,908,096 $23,840,7262013/14 $17,572,468 $7,115,339 $24,687,807

2014/15 $18,242,248 $7,328,799 $25,571,047

2015/16 $18,943,744 $7,548,663 $26,492,407

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Revenues/ExpensesProjections

(amount is per $1,000,000)

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Revenues

Expenses


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Surplus/Deficit(amount is per $1,000,000)

($2.00)

($1.50)

($1.00)

($0.50)

$0.00

FY2011 FY2013 FY2015($2.00)

($0.29)

($0.04)

($0.72)

($1.28)

($1.63)

Surplus/Deficit


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Debt vs. DeficitThere is a difference between debt and deficit

and its important to know the difference. A deficit occurs when expenses exceed revenues

in a given year.

A deficit does not necessarily mean you have debt.

Continued deficit spending leads to debt.

You have debt when you do not have enoughmoney to operate.

Both can be bad things, but Minooka 201 does nothave debt (yet); we have a projected deficit in theEducation Fund that will not go away withoutchanging what we are doing or how we are

funded.


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What does all of this mean?1. Although significantly smaller, we are still experiencinga deficit in each year of this projection.2. The last two years we created (and implemented) a

deficit reduction plan that has helped the current

projections (district-wide).3. Cash balances in the Education and Working CashFunds will carry the district throughout the life of theseprojections (5 years).

4. How do we address the deficits?a) Only two ways to eliminate the deficit Increase Funding or

Decrease Spendingb) Can we eliminate the deficit by cutting staff and programs

without harming the academic program?i. Efficiencies?

ii. Bright Star Award

c) Do we start planning other means to increase funding?i. Grantsii. State Fundingiii. Local Funding


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Next Meeting Topic,

Date, and Time?

Topic: School Fees & Legislative UpdateDate: February 15, 2012

Time: 6:00 to 8:00 P.M.

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Any questions?

Thank you for your time.

Documents

Minooka 201 Financial Projections 19 Jan 2012