Fairbanks Local Schools Financial Update May 15th, 2017 _______________________________________________

Revenues (General Fund) General Property Tax (Residential, Ag. (CAUV), Commercial) (20 Mill Floor + 8 Mill Emergency) State Aid (# Students, Property Wealth # Students, $6,000 Formula Aid) Income Tax (.75 Income Tax for Operations) Property Tax Allocation (12.5% Homestead/Rollback) Personal Property Tax (Utility Property in District) Other (Open Enrollment, Interest, Fees, Donations)

Expenditures (General Fund) Salaries & Wages (Personal Services) (118 Full & Part-time Employees) Retirement/Benefits (STRS & SERS, Health, Dental, Life) Services (Tuition, Contract Services, Internet, Copier, Electric, Maintenance Repairs, Natural Gas, Bus Repairs, Prof. Development, Special Ed. Services, Special Ed. scholarships) Supplies (Maintenance Supplies, Bus Supplies, Fuel, Instructional Supplies) Capital Outlay/Equipment (Busses, Technology, Furniture, Building Improvements) Other (County Auditor/Treasurer Fees, Audit Fees, ODT Fees, Insurance)

Five-Year Financial Forecast 2017 2018 2019 2020 2021 Total Revenues 12,176,594 12,163,894 12,235,337 11,499,904 10,724,460 Total Expenditures 11,984,604 12,384,671 12,810,841 13,183,258 13,470,208 Operating Surplus/ 191,990 220,777- 575,504- 1,683,354- 2,745,748- Deficit (less Renewal) Operating Deficit 220,777- 575,504- 843,854- 1,066,748- (with Renewal) Cash Balance 6,098,289 5,877,512 5,302,008 3,618,654 872,906 (Without Renewal) Cash Balance 6,098,289 5,877,512 5,302,008 4,458,154 3,311,406 (With Renewal)

Key Assumptions Flat to slow revenue growth, both in State Aid and Property Valuation Some decrease in open enrollment, but open enrollment still avg. approx. $700,000 in revenues Overall slow growth in Revenues No increases in staffing No significant increase in capital improvements from General Fund Medical Insurance increasing 5-6% No significant increase in scholarships, vouchers, or open enrollment

Summary Overall current financial health is good considering cash reserve. Financial Forecast is a tool that changes almost daily. Expenditures most likely to outpace revenues over time. State Funding still a question mark. Flat funding to 5.5% Growth. State deductions still a big concern (Vouchers, Scholarships, CCP) Emergency Levy will need to be renewed no later than November, 2019. Can be put on in May 2018 - November 2019. Levy is currently set at $1,679,000. Approximately 8 mills. Spring of 2018 will bring a better idea on planning for the next 5-year levy cycle.