Vision BCSC Finance 101 Barry Gardner June 15, 2017

New Legislation Discussion

Authority to Spend……. Ability to Spend……….

A Review of School Budgeting GENERAL A Review of School Budgeting DEBT SERVICE TRANSPORTATION CAPITAL PROJECTS RAINY DAY BUS REPLACEMENT PENSION Salaries Benefits Ed. Supplies Paying off Debt Paying Teacher Retirement Insurance/Utilities Technology Staff Annual Repairs Equipment Bus Operations Buying New Buses One Time Expenditures 2012Vision BCSC

2017 General Fund Form 3 Advertisements Enrollment 2017---$56,361,674 8,400 Estimate 2016---$52,995,058 8,198 2015---$49,198,627 7,717 2014---$48,972,733 7,497 2013---$47,501,995 7,411 ***Enrollment reflects ADM from previous September Count Day

2016 Tuition Support & Complexity Grant Comparisons FY 2016 State Tuition Support Rank School Funding Per ADM 1 Gary Middle College (charter school) $ 7,371 54 MSD Wayne Township $ 6,376 85 MSD Pike Township $ 6,077 90 MSD Decatur Township $ 6,051 298 Mill Creek Community School Corporation $ 5,506 312 Plainfield Community School Corporation $ 5,457 318 Danville Community School Corporation $ 5,430 332 Avon Community School Corporation $ 5,373 345 Brownsburg Community School Corporation $ 5,319 349 North West Hendricks Schools $ 5,289 * 365 public and charter schools are receiving funding through the Indiana Department of Education funding formula in 2016. State average = $5,877 Source: DOE

Future of Debt Service Fund

CPF Summary for 2017

CPF Summary for 2016

Bus Replacement Plan Summary 2018-2029 Recent Bus Replacement Funding 2017 Funding $471,301 (estimate) 2016 Funding $466,127 2015 Funding---$394,650 2014 Funding---$565,559 2013 Funding---$671,744 Dealing with Bus Bubble Financing vs. Purchasing Dealing with Additional Growth Long Range Planning Levy Cap on Debt Service

Property Classification Property Tax Caps Property Tax Caps limit a taxpayer’s total property tax liability to a fixed percentage of the properties Gross Assessed Value. 2009 was the first year of implementation. 2010 was the first year for full implementation of Property Tax Caps. Data suggests that communities with a higher value of Residential AV are the most impacted by the Property Tax Caps. Property Classification 2009 Cap Percentage 2010 & Beyond Residential Homestead 1.5% 1% Other Residential, Agricultural Land, Long-Term Care 2.5% 2% All Other 3.5% 3%

Tax Cap Example Slide Representative Tax Bill Town of Brownsburg Example   Gross Assessed Valuation (GAV) $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 Less Homestead Deduction $45,000.00 Less Supplemental Deduction $19,250.00 $36,750.00 $54,250.00 $71,750.00 $89,250.00 Less Mortgage Deduction $3,000.00 Net Assessed Valuation (NAV) $32,750.00 $65,250.00 $97,750.00 $130,250.00 $162,750.00 Overall Tax Rate $2.90 Gross Tax Liability $949.75 $1,892.25 $2,834.75 $3,777.25 $4,719.75 Circuit Breaker Cap - 1% $1,000.00 $1,500.00 $2,000.00 $2,500.00 Amount Kept by Taxpayer $0.00 $392.25 $834.75 $1,277.25 $1,719.75

2016 Hendricks County Property Class Breakdown by School District   Avon Brownsburg Danville Mill Creek Northwest Hendricks Plainfield Residential 71.8% 72.0% 62.4% 54.7% 58.6% 37.3% Agricultural 11.4% 10.9% 21.5% 21.7% 17.7% 9.7% Ind./Commercial 16.9% 17.2% 16.1% 23.7% 53.0%  Potential Revenue  $1,451,101 $1,451,934 $1,537,471 $1,690,353 $1,651,727 $2,156,742

Cost Per Student-Five Year Average Fund Cost General $5,839.97 Debt Service* $2,516.59 CPF* $655.65 Transportation* $432.43 Pension Bonds* $81.89 Bus Replacement* $51.19 Avg. Expenditure $9,577.72 2014-15 State Aid/Misc. Revenue Avg. -$5,890.29 Final Cost Per Student $3,687.43 *Represents Property Tax Funds Source: BCSC Form 9 Reports

Potential Housing Development 50 Homes 40 Students $3,687 Per Student Total Cost $147,480 Home Price Revenue Per Home Total Revenue +/- Average Per Student $200,000 $1,060 $53,000 -$94,480 -$2,362 $250,000 $1,325 $66,250 -$81,230 -$2,030 $300,000 $1,590 $79,500 -$67,980 -$1,699 $400,000 $2,120 $106,000 -$41,480 -$1,037 $250,000 x 1%= $2,500 $2,500 x 53% School Share= $1,325 50 Homes x $1,325= $66,250

Housing Development Example 50 Home Development 40 New Students 40 Students X $3,687 $147,480 50 Homes X $1,325 $66,250 Shortfall Remaining -$81,230 New Business Development Outside TIF ($5,108,775 x 3%) x 53% $81,230 Remaining Shortfall $0 Source: Hendricks County Auditor

Bayberry Apartments Example 152 Unit Complex 46 Students X $3,687 $169,602 Revenue from AV $56,084 ($5,291,000 x 2%) x 53% Shortfall Remaining -$113,518 New Business Development Outside TIF ($7,139,500 x 3%) x 53% $113,518 Remaining Shortfall $0 Source: Hendricks County Auditor

Questions and Discussion………