1. District 7 Stakeholders’ School Finance Presentation February 7, 2012

2. Who is a Stakeholder? Parents and Families Community Members Tax Payers All District 7 Employees

3. Importance of Effective Schools Macro Reasons Investment in the Future Global Competitiveness Local Reasons Provides Resources, Financial and Human, to meet Challenges Enhanced Value of Local Real Estate

4. Topics of Conversation Where and how resources are derived Where we spend our funds Recent losses of revenue Added revenues and cost cutting Treasury balances How much does it take to run District 7 Property taxes and home values Who pays the taxes in our district

5. Sources of Revenue

6. Expenses

7. Local Funds Collected by the county Received mostly in June and September Paid by property owners within district Industrial Residential Commercial Increase determined by CPI Consumer Price Index release in January

8. CPI History

9. Added Revenues from CPI

10. State Funding General State Aid Based on low income formula Categoricals Early Childhood Apply every year, need to work for funds Not every district has an EC Program English Language Learning Special Education Transportation Corporate Personal Property Replacement Tax (CPPRT)

11. State Delinquency to WDSD7

12. Federal Funding Reliable funding relative to the state Programs include: Title I (Reading) Title III (Bilingual) National School Lunch

13. ARRA Funding Received in FY10 & FY11 only Program funding ended on June 30, 2011 Programs funded: Title I $69,975 (FY10) Special Education $321,697 (FY10 & FY11) Education Jobs Program $63,320 (FY11)

14. Revenue Lost

15. Cost Cutting

16. New Revenue & Total Enhancements

17. Treasury Balances In balance with last year District 7 in Financial Recognition Status $9,000,000 average balance $13,184,908 high balance Sept. 2010 $7,265,312 low balance May 2011

18. Treasury Balances

19. Monthly Expenses

20. Minimum Balance Need to maintain at least 25% of annual expenses on hand at all times – About $3,750,000 – Below this amount is financially perilous Like your checkbook, manage to low balance

21. Property Taxes Local Taxes Account for 81% of Revenue Affect of Declining Home Values Relationship between EAV and Taxes How CPI Affects Revenue to District

22. CPI Existing EAVTax Rate EAV, CPI and Tax Rate Existing EAV Tax RateExisting EAV Tax Rate

24. Tax Rates by District

25. Property Taxes Property values are falling – Measured in Equalized Assessed Value (EAV) CY2009$693,271,696 CY2010$602,076,737 13.2% Decrease in Assessed Value School districts and other taxing bodies – Local revenues increase by rate of CPI District 7 revenue increases independent of home values

26. District 7 EAV 2009

27. District 7 EAV Change 2009-10

28. Please Remember Issues District 7 faces in managing funds Understanding as to what it takes to financially fund our district Property tax funding

29. Questions and Comments