2016 Annual Meeting Booklet

Transcription

1 2016 Annual Meeting Booklet Monday, October 24, :00 p.m. Performing Arts Center, Lodi High School

2 School District of Lodi 115 School Street Lodi, Wisconsin Ph: 608/ Fax: 608/ Booklet prepared by Daniel Bush Business Manager

3 2016 Annual Meeting Table of Contents Table of Contents Agenda for the Annual Meeting Financial Report Budget in Brief... 6 Proposed 2017 Tax Levy Appendix A: Minutes of the 2015 Annual Meeting Appendix B: Fiscal Information Appendix C: Proposed Budget for Adoption Appendix D: Tax Levy Computation Appendix E: Resolutions Board of Education Sue Miller President Bill Beers Vice-President Karl Westphal Clerk Steven Ricks Treasurer Michelle Pare Director Mark Seidler Director William Wipperfurth Director Administrative Team Charles Pursell District Administrator Vincent Breunig Principal, Lodi High School Sherri Endres-Lovell Principal, Lodi Primary School Lyle Hendrickson Principal, Lodi Elementary School Joe Prosek Principal, Lodi Middle School Joseph Jelinek Assistant Principal, Lodi High School Daniel Bush Business Manager Tiffany Loken Director of Student Services and Curriculum & Instruction Thomas Nack Director of Buildings and Grounds School District of Lodi 1

4 Agenda for the Annual Meeting 2016 Annual Meeting Agenda for the Annual Meeting Monday, October 24, 2016, 7:00 pm Performing Arts Center Lodi High School, 1100 Sauk Street, Lodi, Wisconsin 1. Call Annual Meeting to Order Sue Miller, President, Board of Education, Temporary Chair 2. Introductions; Explanation of Procedures 3. Election of Chair and Ballot Tellers 4. District Overview Charles Pursell, District Administrator a. District Accomplishments/Lodi Pride Campaign b. District Initiatives c. Referendum Review 5. Presentation and Explanation of Treasurer s Report Steven Ricks, Treasurer, Board of Education 6. Presentation and Explanation of Budget Daniel Bush, Business Manager 7. Budget Hearing 8. Resolution A to Authorize Purchase of Land 9. Resolution B to Set Salary of School Board Members 10. Resolution C to Authorize Reimbursement of Board Members Expenses 11. Resolution D to Set Date and Hour for the 2017 Annual Meeting or Authorize the Board of Education to Set Date and Hour 12. Resolution E to Adopt Tax Levy: Irrepealable Debt Service Levy $1,913,750 Capital Projects Fund Levy 50,000 General Fund Levy 10,781,178 Community Service Fund Levy 202,000 Total Local Levy $12,946,928 Proposed motion: I move the adoption of a total tax levy of $12,946,928 of which $10,781,178 is the General Fund levy, $50,000 is the Capital Projects Fund levy, $1,913,750 is the Irrepealable Debt Service levy, and $202,000 is the Community Service Fund levy. 13. New Business 14. Adjournment 2 School District of Lodi

5 2016 Annual Meeting Financial Report Financial Report This is a summary of the district s finances for the school year. More specific information, including a full fiscal report by fund and directions on how to access our detailed annual financial report to the Department of Public Instruction, can be found in Appendix B: Fiscal Information on page 18. Summary The table below summarizes the district s finances for the year. The Operational Funds category combines the General (Fund 10) and Special Education (Fund 27) funds. Program Funds includes funds designated for specific purposes like food service (Fund 50) or community programs and services (Fund 80). Non-district funds are under the district s stewardship, but not our control. Note that year-end balances outside of Operational Funds are tied to specific purposes and cannot be used for instructional or other general operations. District Funds District Fiscal Summary Revenues Expenditures Year-End Balance Operational Funds 18,495,944 18,887,003 5,567,706 Debt Service Fund 1,979,602 1,993, ,150 Capital Projects Funds 300, , ,057 Program Funds 1,079,205 1,103, ,353 Total, All District Funds 21,855,192 22,272,098 6,718,266 Non-District Funds 28,659 26, ,702 Operational Funds In the school year, the district raised $18,495,944 and spent $18,887,003 in its operational funds, a deficit of $391,059. The deficit was larger than anticipated, primarily due to unplanned, additional costs of special education, which reduced our fund balance to $5,567,706 at the end of the year. Debt Service Fund The district paid off $1,925,000 of the High School construction debt, leaving one final $2,000,000 principal payment plus interest for The accumulated balance will be used to reduce this year s tax levy. Specific funds in each category are: Operational Funds Fund 10 (General Fund) Fund 27 (Special Education Fund) Debt Service Fund Fund 39 Capital Projects Funds Fund 41 (Capital Expansion Fund) Fund 46 (Long-Term Improvement Fund) Program Funds Fund 21 (Special Projects Fund) Fund 50 (Food Service Fund) Fund 80 (Community Service Fund) Fund 96 (Cooperative Program Fund) Non-District Funds Fund 60 (Student Activities Fund) Fund 72 (Scholarship Fund) Fund 73 (OPEB Fund) School District of Lodi 3

6 Financial Report 2016 Annual Meeting Capital Projects Funds Work continued on maintenance projects funded as part of the referendum (see Referendum Update below for more details). One major project, resurfacing the High School parking lot, was delayed to summer 2017 due to scheduling conflicts. Program Funds Food Service (Fund 50) The district received $40,000 more in USDA school breakfast and lunch aids than anticipated, which was used to replace the food service van and some obsolete kitchen equipment. We spent down $15,000 of the $54,000 surplus that had accumulated in but still had a 27 percent fund balance in this fund at year end. Community Service (Fund 80) The district used $26,000 of its community service fund balance for replacement of the pool timing and scoring equipment. Otherwise, there was a $7,000 surplus in this fund Referendum Update Operations The biggest portion of referendum funding, $550,000, went toward maintaining our overall educational program. We were able to hold class sizes to the same level as the previous year and keep up course offerings at the Middle and High Schools. Our Advanced Placement classes remained strong in , with Lodi High School named an AP Honor Roll school for the third consecutive year. Technology We spent $150,000 to finish installing the fiber optic connection across town, a project that began the previous year to upgrade the highspeed data link between sites. This has allowed us to use the High School as an optimized access point for our internet connection and improved network performance district-wide. Maintenance The district levied $250,000 of the $950,000 referendum toward capital projects in , which we combined with some of the previous year s levy to fund maintenance. Our biggest project was installing the new metal seam roof on the Middle School at a cost of $237,000. We spent $35,000 upgrading windows and refinishing interiors at the Elementary School and $1,600 to improve entrance security at the 4 School District of Lodi

7 2016 Annual Meeting Financial Report Middle School. The Board of Education also approved resurfacing the High School parking lot, but we were not able to schedule it in time for fall. The project has been pushed back to this coming summer of 2017 and is estimated at $156,000. Financial Indicators There are three basic indicators of a school district s financial health: fund balance, bond rating, and debt ratio. While the current picture is positive there are challenges on the horizon. When and how those challenges arise depends in large part on the November 8 referendum. Fund Balance A school district s fund balance is not a cash reserve, but rather its assets minus its liabilities on a specific date, usually June 30 (the end of the fiscal year). For a district like Lodi, our June 30 balance includes well over $3 million of tax receipts expected in August, needed to fund the district until the first major state aid payment in early December. Many districts borrow money for cash flow during this period, but Lodi is fortunate that, through good fiscal management, we have accumulated enough fund balance to avoid cash flow borrowing. However, if our enrollment decline continues or accelerates, or if we are unable to gain community support for sufficient operating funds, it would put our fund balance at risk. Bond Rating A bond rating is analogous to a person s credit score it is a measure of a business or public agency s creditworthiness. Our most recent bond rating, A+, was from Standard & Poor s in March In their report, the rating agency stated our rating reflects the health of the Madison-area economy, enrollment, a moderate debt burden, and strong financial operations with good management. If Questions 2 and/or 3 of the November 8 referendum pass, we will have to go through a new rating process in order to issue the construction debt. Debt Ratio By law, a school district may not borrow more than 10 percent of its total equalized property value. At the end of we had $2 million of debt against $1.1 billion of property value, a ratio of 0.2 percent, with that debt being paid off this year. If both Questions 2 and 3 of the November 8 referendum pass, we would issue $31 million in debt to fund the construction projects included in those questions, giving the district a new debt ratio of 2.8 percent still far below the statutory limit. School District of Lodi 5

8 Open Enrolled FTE Budget in Brief 2016 Annual Meeting Budget in Brief This section provides a summary and description of the budget for the school year. The full, itemized budget for adoption under s , Wis. Stats., is included as Appendix C: Proposed Budget for Adoption on page is the final year of our 3-year $950,000 non-recurring referendum. As has been planned since the referendum was approved, this budget has a deficit to be covered out of the district s fund balance. We are actually expecting a slightly smaller deficit than we had last year, which had been caused by unanticipated special education costs that are no longer a factor. Highlights of the budget include: No new programming is added this is a cost-to-continue budget. However, individual school allocations are being held steady from last year, and we continue to implement our technology plan. All $950,000 of referendum revenue is being spent on district operations, as was expected for the third year. The Capital Expansion Fund (Fund 41) levy returns to its $50,000 minimum. Our positive trend with the Open Enrollment program continues, as shown in the chart below. This year we have only 14.8 fewer FTE coming into the district than going out, with the improvement driven by families outside the district choosing Lodi schools for their kids. Financially, the result is $50,000 less flowing out of the district due to Open Enrollment than there was last year. Lodi Open Enrollment Trend Coming In Going Out Net Open Enrollment 6 School District of Lodi

9 2016 Annual Meeting Budget in Brief Our Equalization Aid is down $367,000 (9.4%) from last year. That drop is partially made up by a $151,000 increase in the Per-Pupil Aid program, which went up from $150 per student last year to $250 this year. Lodi does not currently have any resident students participating in the expanded Wisconsin Parental Choice Program (WPCP) or new Special Needs Scholarship Program (SNSP), also known as private school and special needs vouchers. While there is no direct cost to the district for voucher expansion, there is an indirect cost due to how the expansion is being funded. For the first time, Equalization Aid and other general state aids the $4.6 billion pot of funds that makes up the bulk of state school funding includes students who began participating in WPCP last year. 88% of them had not previously been enrolled at a public school, and were thus never included in the state aid formula before. If they had not been added into the calculation, we would be receiving about $68,000 more in state aid this year. 1 Instead, Lodi district taxpayers are picking up that cost. General and Special Education Funds Funds 10 and 27 NOTE: While the General and Special Education Funds are separated for the purposes of accounting and reporting, in practice they work as a single fund through which we operate the district s instructional program. They are presented together here for greater clarity. Funds 10 & 27 Budget for Revenues Taxes, Fees & Other Local Sources State Funding Other Expenses Instruction Support Other $0 $5 $10 $15 $20 Millions 1 Assuming the same statewide aid appropriation and no other changes in law. School District of Lodi 7

10 Budget in Brief 2016 Annual Meeting Revenues Local sources are largely property tax revenues, but also include student fees, gifts, program revenues, and service payments from individuals and businesses. Intermediate sources are revenues from public agencies below the state level that are not other school districts. In our case, this includes aid revenues that come through Cooperative Educational Service Agency (CESA) 5 and a small amount of service payments from Columbia County. Other revenues are mostly refunds and rebates. Funds 10 & 27 Revenues Transfers between Funds 10 & 27 balance out and are not shown Account Actual Budget Change 200 Local Sources 10,624,445 11,050, % 300 Other Wisconsin School Districts 406, , % 500 Intermediate Sources 37,412 37, % 600 State Sources 6,760,172 6,585, % 700 Federal Sources 607, , % 900 Other Revenues 60,136 50, % Total Revenues 18,495,944 18,860, % For , the district s Revenue Limit the total amount of general state aid and property taxes it can collect is $16,134,302. That number includes $950,000 from the third and final year of our current nonrecurring operating referendum. DPI has certified our Equalization Aid for the year at $5,300,325, which leaves the other $10,833,977 to be raised through property taxes. All but $50,000 of that is budgeted in Fund 10, which is included in the table above in account 200 Local Sources. (Equalization Aid and other state aids fall under 600 State Sources.) Growth in Open Enrollment from other districts is reflected in the 29% revenue increase under 300 Other Wisconsin School Districts. The pie chart below shows how our revenue breaks down between property taxes, state aids, and other sources: Funds 10 & 27 Revenue Breakdown All other sources, $877,661 Federal funds, $613,376 Other state aids, $1,285,349 Property tax, $10,783,977 Equalization Aid, $5,300,325 8 School District of Lodi

11 2016 Annual Meeting Budget in Brief Expenditures Instruction Funds 10 & 27 Expenditures Transfers between Funds 10 & 27 balance out and are not shown Account Actual Budget Change Undifferentiated Curriculum 3,475,804 3,542, % Regular Curriculum 3,618,035 3,689, % Vocational Curriculum 569, , % Physical Curriculum 578, , % Special Ed. Curriculum 2,328,163 2,360, % Co-Curricular Activities 519, , % Other Special Needs 1, % Subtotal, Instruction 11,090,140 11,290, % Support Services Pupil Services 701, , % Instructional Staff Services 627, , % General Administration 340, , % School Building Admin. 1,080,072 1,127, % Business Administration 3,473,413 3,443, % Central Services 424, , % Insurance & Judgments 172, , % Other Support Services 234, , % Subtotal, Support Services 7,054,129 7,155, % Non-Program Transactions Inter-Fund Transfers 14,329 32, % Instructional Svc. Payments 724, , % Other Non-Program 3, % Subtotal, Non-Program Transactions 742, , % Total Expenditures 18,887,003 19,251, % This year we are budgeting for a 1.9 percent increase in expenditures over last year, right in line with the rate of inflation. 2 We are expecting an increase in retirement contributions, which fall under Other Support Services. The increase in Instructional Service Payments comes from the change in Open Enrollment law taking effect this year, where the transfer rate for students with disabilities enrolling outside their district is now a fixed $12,000. (Previously, Open Enrollment tuition payments were a combination of the base transfer rate plus any additional special education costs.) Undifferentiated curriculum means instruction by staff that teach a variety of subjects throughout the day, such as elementary teachers. Regular curriculum is instruction in specific core subjects like English language arts, math, social studies, science, art & music. Instructional staff services include items like professional development, library media centers, and direction of instruction. General administration covers the school board and district administrator, while school building administration includes principals and office staff in each building. Business administration includes the business office, central services, maintenance, operations, and transportation. The budget here breaks down between: Transportation, $809,500 Maintenance & operations, $2,241,483 Other business administration, $393,013 Other support services are largely retirement benefit expenses. Non-program transactions are either internal accounting items or instructional service payments, costs for instruction that we contract from other agencies. 2 The Department of Labor CPI Calculator shows inflation as 1.86 percent. School District of Lodi 9

12 Budget in Brief 2016 Annual Meeting Fund Balance A fund balance is not a cash reserve. Instead, it is an accounting statement of our overall financial position our assets (what we own) minus our liabilities (what we owe) in a particular fund on a particular date. School district fund balances are reported as of June 30, the last day of the fiscal year. Account Funds 10 & 27 Balance Actual Budget Change Beginning Fund Balance 5,958,765 5,567, % Total Revenues 18,495,944 18,860, % Total Expenditures 18,887,003 19,251, % Ending Fund Balance 5,567,706 5,177, % Working Capital Needs 2,679,000 2,759, % Other Unassigned Balance 2,888,706 2,418, % One item to note is the new method we are using to report balances in the General Fund. The definitions used for fund balance are set by the Government Accounting Standards Board (GASB) and were updated in Any balance that is not constrained by some legal requirement, such as a bond covenant or required vote of the Board of Education, is defined as Unassigned. Last year DPI updated their accounting definitions to allow districts to describe unassigned fund balances for specific purposes. Most importantly, we can now specify how much of our fund balance is used for working capital needs (cash flow). A school district like Lodi, funded in large part through property taxes, has a lot of tax revenue booked on June 30 that is not actually received until late August. These funds are not a long-term reserve, but rather what is needed to tide the district over until the first major state aid payment in early December. We are using the Working Capital Needs account to report this amount to the public. Only the remainder, reported under Other Unassigned Balance, is a true reserve. Debt Service Fund Fund 39 The final payment on the construction debt for the High School is being made this year. We are able to use the accumulated earnings on our Fund 39 investments to reduce the tax levy for this final payment. Depending on the outcomes of Questions 2 and 3 in the November 8 referendum, either the fund will be held over for the new debt issue, or a small residual balance will be transferred to the General Fund. 10 School District of Lodi

13 2016 Annual Meeting Budget in Brief Account Fund 39 Budget Actual Budget Change Beginning Fund Balance 141, , % Total Revenues 1,979,602 1,913, % Total Expenditures 1,993,875 2,040, % Ending Fund Balance 127,150 1, % Outstanding Debt at Year End 2,000, % Capital Projects Funds Funds 41 and 46 Historically, the district has set aside $50,000 each year for routine maintenance work. In the current referendum we set aside money for maintenance on the front end, levying an additional $550,000 in and $250,000 in This year we are returning to that base $50,000 level, with the full amount of the current referendum going toward operations and technology. Most of our maintenance spending will come from the balance built up in our capital projects funds. Funds 41 and 46 exist to spread out the impact of capital projects on a district s state aid. Almost all our balance is in Fund 41, the more advantageous of the two for a negative tertiary district like Lodi a district that loses aid at the top level of the state formula due to its property value per student being above-average. Account Funds 41 & 46 Budget Actual Budget Change Beginning Fund Balance 520, , % Total Revenues 300,441 50, % Total Expenditures 287, , % Ending Fund Balance 533, , % A number of projects are planned for or in progress this year: High School parking lot resurfacing (delayed from the previous year) Referendum preliminary work Upgrade school entry card readers Ongoing HVAC maintenance Radio system coverage boost Stadium & baseball field safety improvements School District of Lodi 11

14 Budget in Brief 2016 Annual Meeting Food Service Fund Fund 50 In the district took in $54,000 more than it spent in the Food Service Fund. While our board policy is for the program to be selfsustaining, we also want to avoid overcharging students. Last year we spent down $15,000 of that accumulated balance. We also received unexpected grant funding that allowed us to replace our food service vehicle and some kitchen equipment. This year we anticipate a return to normal for the Food Service Fund. Account Fund 50 Budget Actual Budget Change Beginning Fund Balance 204, , % Total Revenues 679, , % Total Expenditures 694, , % Ending Fund Balance 189, , % Community Service Fund Fund 80 Most of the Community Service Fund is used for CREW programming and the community pool at the High School, which are funded with a combination of user fees and tax dollars. This year we are improving lifeguard staffing at the pool. Recently, the Board of Education approved $17,000 to preserve the Lodi Community Action Team (LCAT) program, which had originally been funded with a five-year federal grant. The district narrowly missed being renewed for this grant in , due in part to the program s success in our community. We are reapplying for the grant in and beginning to build a fundraising program to sustain LCAT over the long term. Because LCAT is a program for the entire community, not just our schools, we are transferring it to the Community Service Fund. Account Fund 80 Budget Actual Budget Change Beginning Fund Balance 74,432 55, % Total Revenues 279, , % Total Expenditures 298, , % Ending Fund Balance 55,041 46, % 12 School District of Lodi

15 2016 Annual Meeting Budget in Brief Cooperative Program Fund Fund 96 This fund is used for supplemental high school athletic programming partly funded by outside sources, such as invitational tournaments. The district s share of these costs are included in Fund 10 as a transfer to this fund, and we do not maintain a balance here. Our Cooperative Program Fund is reported to DPI as Fund 99. Account Fund 96 Budget Actual Budget Change Total Revenues 31,379 32, % Total Expenditures 31,379 32, % Special Projects Fund Fund 21 This fund is used to account for money raised and contributed to the district for a particular purpose, such as a booster club donation for a particular sports team. It also includes a balance originally from the Community Service Fund (Fund 80) that was transferred here at the end of the school year, after DPI modified its definition of that fund. Account Fund 21 Budget Actual Budget Change Beginning Fund Balance 235, , % Total Revenues 103, , % Total Expenditures 93, , % Ending Fund Balance 246, , % Non-District Funds There are three funds where the district holds funds on behalf of others, but does not control the budgets for their use: Student Activity Fund (Fund 60): Used for student-run activities. Scholarship Fund (Fund 72): Used for donations from individuals and organizations to support scholarships for Lodi students. Other Post-Employment Benefit (OPEB) Trust Fund (Fund 73): The district used to have a trust fund for some retirement benefits but discontinued its use in A residual $3 balance was identified in , which we plan to resolve when closing our investment accounts related to the High School construction debt. School District of Lodi 13

16 Tax Levy Mill Rate Millions Proposed Tax Levy 2016 Annual Meeting Proposed Tax Levy For the owner of the median Lodi area home a valued at $247,900, the school property tax with this levy before any property tax credits is $2,878. Other pre-credit tax amounts include: Property Value School Tax $100,000 $1,161 $200,000 $2,322 $300,000 $3,482 $500,000 $5,804 $1 million $11,608 We are proposing a total property tax levy of $12,946,928 for the School District of Lodi, which is 1.38 percent more than the levy. Based on the equalized property value certified by the Department of Revenue, the resulting mill rate (property tax per $1,000 of value) is $11.61, a decline of 10 cents from the previous year. The levy breaks down as follows: Inside Revenue Limit General Fund Levy $10,781, % Capital Expansion Levy 50, % Outside Revenue Limit Irrepealable (Referendum) Debt Service Levy 1,913, % Community Service Levy 202, % Total Tax Levy $12,946,928 A detailed explanation of how this amount was determined can be found in Appendix D: Tax Levy Computation on page 25. The chart below shows how the district s tax levy and mill rate have changed over the past five years: Property Tax Trend $14 $12 $10 $14.00 $12.00 $10.00 $8 $6 $4 $2 $8.00 $6.00 $4.00 $2.00 $ $0.00 Levy Inside Limit Levy Outside Limit Mill Rate a Median for ZIP code from Zillow. com, August School District of Lodi

17 2016 Annual Meeting Appendix A: Minutes of the 2015 Annual Meeting Appendix A: Minutes of the 2015 Annual Meeting October 26, 2015 The Annual Meeting of the School District of Lodi was called to order by President Sue Miller at the LGI room located in the Lodi High School at 7:00 pm. Present: Ms. Miller, Mr. Steinberg, Mr. Seidler, Ms. Pare and Mr. Ricks Absent: Mr. Beers and Mr. Westphal Also Present: Mr. Pursell, Mr. Richter, and Ms. Hart, District Legal Counsel Ms. Miller had the Board of Education members introduced themselves. Election of Chair Nomination of Sue Miller by Mark Seidler/Second by Steven Ricks No other nominations made Vote: Motion carries on voice vote Election of Parliamentarian Nomination for Attorney JoAnn Hart to be Parliamentarian by H. Adam Steinberg/ Second by Steven Ricks Vote: Motion carries on voice vote Ms. Loken shared a video of Lodi Pride produced by LCAT about Lodi Communities Lodi Pride. Then she shared a video on the accomplishments within the Lodi School District. Ms. Loken reviewed our 4 Board of Education Goals: Focus on academic achievement Reading Achievement data to meet or exceed expected grade level growth benchmarks Professional development focusing on technology and literacy needs. Financial plan to meet the District needs when the referendum ends Building level goals have reading achievement across all grade levels measured by MAPs testing. A literacy coach was hired to help our content teachers improve content and reading skills in all subject areas. Technology integration. The district has added ipads and Chrome books across the buildings. We now have a technology integrator to work with staff across the district to integrate technology and programs into the classrooms. Mr. Anderson, IT Coordinator, reviewed the referendum spending up to date for technology. The first year was to update the servers, unitrends data backup upgrades and data switch upgrades to allow us to increase bandwidth totaling $190, in In , the second year of the referendum, the infrastructure updates are completed and totaled $142, which consisted of the railroad crossing permit - $ and the underground fiber installation - $141, This came in under budget. All buildings are now the same speed on the internet. School District of Lodi 15

18 Appendix A: Minutes of the 2015 Annual Meeting 2016 Annual Meeting Mr. Nack, Director of Buildings and Grounds, reviewed the buildings and grounds part of the referendum. He went through all the expenditures up to this time. At the high school the parking lot repair, security upgrades (in all buildings) and roof repair/annual maintenance were completed. At the middle school was the dedicated DDC control (heating) system, replaced existing shingled roof with steel roof, provided security upgrades, parking lot repairs and improved tech education ventilation paint booth. At the elementary school the project was replacing window wall framing and stage 1 of the roof replacement. Budget Hearing Mr. Seidler, Board Treasurer and Chair of the Finance Committee, shared the Financial Report. He gave a budget overview and explained the general fund variance. This year finished better than was projected. He explained the different funds and what they are used for in the budget. Mr. Brent Richter, Business Manager, gave budget highlights: Maintained prior staffing levels, plus added a Technology Coordinator, Literacy coach, and.4 FTE Occupational Therapist Continued declining enrollment Decrease in state aid of $285,000 Year 2 of 3-year Non-recurring referendum ($950,000 each year) 2nd to last Debt Service levy He explained what each fund account is and used for and where the revenue comes from. He shared the proposed budget. Mr. Richter shared the expected mill rate will decrease and is a difference of 0.24 per $1000 value of a home or $24.19 for a $100, house. Resolutions Resolution A Set Salary of School Board Members for the School Year. Resolution: Be it resolved that the board members of the Lodi School District be paid a salary as stipulated below: President s salary to be $3, Other BOE Members salary be $2, Introduced by Vince Breunig Second by Carrie Williams Dated October 26, 2015 Vote: Motion carries voice vote All ayes, no nays Resolution B To Authorize Reimbursement of Board Members Expenses. Resolution: I move that the board members of the Lodi School District be reimbursed for expenses incurred during the school year as per BOE Policy No. 142 Introduced by Carrie Williams Second by Bob Hunt Dated October 26, 2015 Vote: Motion carries voice vote All ayes, no nays Resolution C to delegate the Board of Education to set annual meeting date (Wis. Stat. Sec (1)) Resolution: I move Lodi School District Board of Education be delegated to set the date of the annual meeting (as per statute (1)) Introduced by H. Adam Steinberg Second by Shelly Pare 16 School District of Lodi

19 2016 Annual Meeting Appendix A: Minutes of the 2015 Annual Meeting Dated October 26, 2015 Vote: Motion carries voice vote All ayes, no nays Resolution D to Adopt Tax Levy Irrepealable Debt Service Levy $1,979, Capital Projects Fund Levy $300, General Fund Levy $10,331, Community Service Fund Levy $160, Total Local Levy (less computer aid) $12,770, Resolution: Ms. Chairperson, I move the adoption of a total tax levy of $12,770,999 of which $10,331,561 is the General Fund Levy, $300,000 is the Capital Projects Fund Levy, $1,979,438 is the Irrepealable Debt Service Levy, and $160,000 is the Community Service Fund Levy. Introduced by Steven Ricks Second by Shelly Pare Dated October 26, 2015 Vote: Motion carries voice vote All ayes, no nays New Business: None Motion to Adjourn by Steven Ricks/H. Adam Steinberg Vote: Motion carries All ayes, no nays Time: 7:55 pm School District of Lodi 17

20 Appendix B: Fiscal Information 2016 Annual Meeting Appendix B: Fiscal Information The table on the next page is a summary report of the district s finances for the school year. This information is organized by fund, which is a balanced group of asset, liability, equity, expenditure, and revenue accounts for a related set of financial transactions. Each fund is defined based on its purpose and reporting requirements, with the General Fund (Fund 10) incorporating all our transactions not required to be accounted for in another fund. A description of how we use each fund is included in the Budget in Brief section that begins on page 6. Every year the district submits an annual fiscal report called the PI-1505 to the Department of Public Instruction, as required by law. Our report for the school year was submitted on September 13, A copy of that report is available in PDF format on the district website at Printed copies may be requested from Daniel Bush, Business Manager, at the district office. Financial data is reported under the Wisconsin Uniform Financial Accounting Requirements (WUFAR). More information on WUFAR, including current and past versions of the WUFAR manual with definitions of the individual dimensions that make up each account code, is available from DPI at 18 School District of Lodi

21 2016 Annual Meeting Appendix B: Fiscal Information Fiscal Report by Fund Fund Beginning of Year Surplus/ End of Year Revenues Expenditures Assets Liabilities Equity (Deficit) Assets Liabilities Equity Operational Funds 10 General Fund 6,646, ,617 5,958,765 17,454,256 17,845,315 (391,059) 6,386, ,344 5,567, Special Education Fund 22,780 22, ,352,081 3,352, ,048 91,048 0 Less interfund transfers 1 (2,310,394) (2,310,394) Total, Operational Funds 6,669, ,396 5,958,765 18,495,944 18,887,003 (391,059) 6,477, ,392 5,567,706 Debt Service Fund 39 Debt Service Fund 141, ,424 1,979,602 1,993,875 (14,273) 127, ,150 Capital Projects Funds 41 Capital Expansion Fund 519, , , ,738 12, , , Long-Term Impr. Fund 1, , , ,002 Total, Capital Projects Funds 520, , , ,738 12, , ,057 Program Funds 21 Special Projects Fund 235, , ,480 93,080 10, , , Food Service Fund 223,215 18, , , ,435 (15,285) 207,863 18, , Community Service Fund 75, , , ,918 (19,392) 56,910 1,869 55, Cooperative Pgm. Fund ,379 31, Less interfund transfers 1 (14,329) (14,329) Total, Program Funds 534,551 19, ,630 1,079,205 1,103,482 (24,277) 511,034 20, ,353 Grand Total, All District Funds 7,865, ,318 7,135,172 21,855,192 22,272,098 (416,906) 7,648, ,073 6,718,266 Non-District Funds 60 Student Activities Fund 28,685 28,685 0 See note 2 below 37,846 37, Scholarship Fund 176, ,190 28,659 26,151 2, , , OPEB Fund Total, Non-District Funds 204,878 28, ,193 28,659 26,151 2, ,547 37, ,702 Notes (1) Inter-fund transfers between Funds 10 & 27 and Funds 10 & 96 are backed out to eliminate duplicated revenues and expenditures. (2) All Fund 60 transactions are recorded directly against balance sheet (asset and liability) accounts. School District of Lodi 19

22 Appendix C: Proposed Budget for Adoption 2016 Annual Meeting Appendix C: Proposed Budget for Adoption GENERAL FUND (FUND 10) Audited Unaudited Budget Beginning Fund Balance (Account ) 5,762, ,958, ,567, Ending Fund Balance, Nonspendable (Acct ) Ending Fund Balance, Restricted (Acct ) Ending Fund Balance, Committed (Acct ) 5,958, Ending Fund Balance, Assigned (Acct ) Ending Fund Balance, Unassigned (Acct ) Working Capital Needs (Cashflow) (Acct ) ,679, ,759, Other Unassigned Fund Balance (Acct ) ,888, ,418, TOTAL ENDING FUND BALANCE (ACCT ) 5,958, ,567, ,177, REVENUES & OTHER FINANCING SOURCES 100 Transfers-in 1, , , Local Sources 210 Taxes 9,897, ,349, ,795, Payments for Services , , Non-Capital Sales 23, , , School Activity Income 60, , , Interest on Investments 8, , , Other Revenue, Local Sources 122, , , Subtotal Local Sources 10,113, ,624, ,050, Other School Districts Within Wisconsin 310 Transit of Aids Payments for Services 325, , , Medical Service Reimbursements Other Inter-district, Within Wisconsin , Subtotal Other School Districts within Wisconsin 325, , , Other School Districts Outside Wisconsin 440 Payments for Services Other Inter-district, Outside Wisconsin Subtotal Other School Districts Outside Wisconsin Intermediate Sources 510 Transit of Aids 5, , , Payments for Services from CCDEB Payments for Services from CESA Medical Services Reimbursement Other Intermediate Sources Subtotal Intermediate Sources 5, , , State Sources 610 State Aid -- Categorical 339, , , State Aid -- General 5,953, ,667, ,300, DPI Special Project Grants 25, , , Payments for Services SAGE/AGR Other State Revenue Through Local Units 30, , Other Revenue 12, , , School District of Lodi

23 2016 Annual Meeting Appendix C: Proposed Budget for Adoption Subtotal State Sources 6,362, ,074, ,817, Federal Sources 710 Federal Aid - Categorical 44, Impact Aid DPI Special Project Grants 75, , , IASA Grants 123, , , JTPA Other Federal Revenue Through Local Units , Other Federal Revenue Through State 67, , , Other Federal Revenue - Direct , , Subtotal Federal Sources 310, , , Other Financing Sources 850 Reorganization Settlement Compensation, Fixed Assets Long-Term Obligations Subtotal Other Financing Sources Other Revenues 960 Adjustments Refund of Disbursement 51, , , Medical Service Reimbursement Miscellaneous 129, Subtotal Other Revenues 180, , , TOTAL REVENUES & OTHER FINANCING SOURCES 17,299, ,454, ,690, EXPENDITURES & OTHER FINANCING USES Instruction Undifferentiated Curriculum 3,388, ,475, ,542, Regular Curriculum 3,480, ,618, ,689, Vocational Curriculum 597, , , Physical Curriculum 560, , , Co-Curricular Activities 450, , , Other Special Needs , Subtotal Instruction 8,477, ,761, ,930, Support Sources Pupil Services 334, , , Instructional Staff Services 445, , , General Administration 305, , , School Building Administration 1,077, ,080, ,127, Business Administration 3,115, ,175, ,198, Central Services 360, , , Insurance & Judgments 146, , , Debt Services Other Support Services 307, , , Subtotal Support Sources 6,092, ,251, ,397, Non-Program Transactions Inter-fund Transfers 2,027, ,311, ,094, Instructional Service Payments 506, , , Other Non-Program Transactions , Subtotal Non-Program Transactions 2,533, ,832, ,752, TOTAL EXPENDITURES & OTHER FINANCING USES 17,103, ,845, ,080, School District of Lodi 21

24 Appendix C: Proposed Budget for Adoption 2016 Annual Meeting SPECIAL PROJECT FUNDS (FUNDS 21, 23, 29) Audited Unaudited Budget Beginning Fund Balance 41, , , Ending Fund Balance 235, , , REVENUES & OTHER FINANCING SOURCES 294, , , Instruction 40, , , Support Services 59, , , Non-Program Transactions TOTAL EXPENDTURES & OTHER FINANCING USES 100, , , SPECIAL EDUCATION FUND (FUND 27) Audited Unaudited Budget Beginning Fund Balance Ending Fund Balance REVENUES & OTHER FINANCING SOURCES 100 Transfers-in 2,026, ,296, ,062, Payments for Services Non-Capital Sales School Activity Income Other Revenue, Local Sources Subtotal Local Sources Other School Districts Within Wisconsin 310 Transit of Aids 20, Payments for Services 32, , , Medical Service Reimbursements Other Inter-district, Within Wisconsin Subtotal Other School Districts within Wisconsin 52, , , Other School Districts Outside Wisconsin 440 Payments for Services Other Inter-district, Outside Wisconsin Subtotal Other School Districts Outside Wisconsin Intermediate Sources 510 Transit of Aids 65, , , Payments for Services from CCDEB Payments for Services from CESA Medical Services Reimbursement Other Intermediate Sources Subtotal Intermediate Sources 65, , , State Sources 610 State Aid -- Categorical 568, , , State Aid -- General , , DPI Special Project Grants Payments for Services SAGE AGR Other Revenue Subtotal State Sources 568, , , Federal Sources 710 Federal Aid - Categorical , , School District of Lodi

25 2016 Annual Meeting Appendix C: Proposed Budget for Adoption 730 DPI Special Project Grants 309, , , IASA Grants JTPA Other Federal Revenue Through Local Units Other Federal Revenue Through State 5, , , Other Federal Revenue - Direct , Subtotal Federal Sources 315, , , Other Financing Sources Compensation, Fixed Assets Long-Term Obligations Subtotal Other Financing Sources Other Revenues 960 Adjustments Refund of Disbursement Miscellaneous Subtotal Other Revenues TOTAL REVENUES & OTHER FINANCING SOURCES 3,027, ,352, ,249, EXPENDITURES & OTHER FINANCING USES Instruction Undifferentiated Curriculum Regular Curriculum Vocational Curriculum Physical Curriculum Special Education Curriculum 2,091, ,328, ,360, Co-Curricular Activities Other Special Needs Subtotal Instruction 2,091, ,328, ,360, Support Sources Pupil Services 324, , , Instructional Staff Services 164, , , General Administration School Building Administration Business Administration 254, , , Central Services Insurance & Judgments Debt Services Other Support Services 10, , , Subtotal Support Sources 754, , , Non-Program Transactions Inter-fund Transfers , , Instructional Service Payments 181, , , Other Non-Program Transactions Subtotal Non-Program Transactions 181, , , TOTAL EXPENDITURES & OTHER FINANCING USES 3,027, ,352, ,249, School District of Lodi 23

26 Appendix C: Proposed Budget for Adoption 2016 Annual Meeting DEBT SERVICE FUND (FUNDS 38, 39) Audited Unaudited Budget Beginning Fund Balance 155, , , ENDING FUND BALANCES 141, , , TOTAL REVENUES & OTHER FINANCING SOURCES 1,952, ,979, ,913, Long-Term Capital Debt 1,966, ,993, ,040, Refinancing Operational Debt Post Employment Benefit Debt Other Long-Term General Obligation Debt Non-Program Transactions TOTAL EXPENDITURES & OTHER FINANCING USES 1,966, ,993, ,040, INDEBTEDNESS, END OF YEAR 3,925, ,000, CAPITAL PROJECTS FUND (FUNDS 41, 46, 48, 49) Audited Unaudited Budget Beginning Fund Balance 493, , , Ending Fund Balance 520, , , TOTAL REVENUES & OTHER FINANCING SOURCES 622, , , Instructional Services Support Services 595, , , Community Services Non-Program Transactions TOTAL EXPENDITURES & OTHER FINANCING USES 595, , , FOOD SERVICE FUND (FUND 50) Audited Unaudited Budget Beginning Fund Balance 150, , , ENDING FUND BALANCE 204, , , TOTAL REVENUES & OTHER FINANCING SOURCES 653, , , Support Services 599, , , Non-Program Transactions TOTAL EXPENDITURES & OTHER FINANCING USES 599, , , COMMUNITY SERVICE FUND (FUND 80) Audited Unaudited Budget Beginning Fund Balance 171, , , ENDING FUND BALANCE 74, , , TOTAL REVENUES & OTHER FINANCING SOURCES 289, , , Support Services 12, , , Community Services 224, , , Non-Program Transactions 150, TOTAL EXPENDITURES & OTHER FINANCING USES 387, , , School District of Lodi

27 2016 Annual Meeting Appendix D: Tax Levy Computation PACKAGE & COOPERATIVE PROGRAM FUND (FUNDS 91, 93, 99) Audited Unaudited Budget Beginning Fund Balance ENDING FUND BALANCE TOTAL REVENUES & OTHER FINANCING SOURCES 29, , , Instruction 28, , , Support Services Non-Program Transactions 1, TOTAL EXPENDITURES & OTHER FINANCING USES 29, , , Appendix D: Tax Levy Computation The amount a school district can tax is the final step in a complex calculation. Enrollment trends, how much money was raised and spent the previous year, property values, and statewide comparisons drive what revenue we can raise and how much does not have to be covered by local taxpayers. District income is capped by a Revenue Limit that can only be exceeded with voters permission. Whatever falls under the cap that is not covered by state aid is the local community s responsibility. Membership School funding in Wisconsin uses a definition of enrollment called membership, the fulltime equivalent (FTE) number of resident students whose education is the district s financial responsibility. (For example, not only are Lodi residents in Lodi schools counted for membership, but so are Lodi residents at other districts through Open Enrollment.) In the School District of Lodi, all students are counted for funding purposes as 1.0 FTE except for 4K (0.6 FTE) and preschool special education (0.5 FTE). Counts take place on the third Friday of September and the second Friday of January. There are differences in how membership is defined and used between state aid and the Revenue Limit. Policymakers and school finance professionals use the terms aid membership and Revenue Limit membership to distinguish the two. These differences can be summarized as follows: This year s funding is based upon The count date(s) used are Aid Membership Last year Average of September and January Revenue Limit Membership Average of this year and the 2 previous September only Summer school FTE is counted at 100% 40% Wis. Parental Choice Program (voucher) students included? Special Needs Scholarship (spec. ed. voucher) students included? Yes Yes No Yes School District of Lodi 25