Minooka 201 Financial Projections 19 Jan 2012
Transcript of 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.