DAINGERFIELD-LONE STAR INDEPENDENT SCHOOL DISTRICT Budget Hearing August 18, 2014

CAMPUS RESPONSIBILITIES Develops goals and planning objectives for the campus and its programs Establishes funding priorities for resource allocations and ensures consistency with campus improvement plans, instructional goals and objectives, and other planning needs Prepares preliminary campus budget Principals and directors provide advisory review of preliminary budget

ADMINISTRATOR RESPONSIBILITIES Develops and communicates budget process guidelines and calendar Develops district revenue estimates Compiles and reviews personnel staffing needs Compiles all school budgets into proposed district budget Submits proposed district budget to school board

BOARD RESPONSIBILITIES Reviews/prioritizes/revises proposed budget submitted by superintendent and staff in workshops/working sessions Conducts public hearings for budget consideration Adopts official budget and tax rate

DISTRICT FINANCIAL PLAN A school district’s budget is a financial plan, but in practice it actually comprises three individual plans… Educational Plan Revenue Plan Expenditure Plan

THE EDUCATIONAL PLAN The budget supports the mission and strategic plan of the district, including: District Goals Campus Improvement Plans Long-range Plans Guide for Priority Spending

THE REVENUE PLAN The estimated income expected from three major sources of revenue – approved budget

THE EXPENDITURE PLAN The detailed part of the budget that provides an audit trail for revenues Fund – where the revenue comes from Function – why the revenue is spent Object – what is purchased Program Intent – mandated state allotment spending

BUDGET BY FUND A fund is a self-balancing set of accounts recording financial resources and liabilities. A district designates the fund’s financial resources for a distinct purpose. General Fund – M & O Special Revenue Food Service Sp Ed SSA Interest & Sinking – Bonded Debt

BUDGET BY OBJECT (What types of items are purchases or services obtained) 6100 – Payroll Costs 6200 – Contracted Services Supplies Other Operating Expense 6500 – Debt Service 6600 – Capital Expense

DEBT SERVICE Interest & Sinking Fund Accounts for bonded indebtedness Two outstanding bond issues DLSISD U/T Series 2010, maturing in 2021 Unlimited Tax Qualified School Construction Bonds, Taxable Series 2012, maturing in 2027 Total debt payments $768,399 Series 2010 Bonds $55,000 QSCB Sinking Fund Payment

UNDERSTANDING FUND BALANCE Fund Balance is simply total assets minus total liabilities and encumbrances – your net worth. The following examples illustrate why it is important to maintain an adequate level of unreserved fund balance… Catastrophic and uninsured losses Investment Income Credit and bond rating Cash flows for normal school operations Shortfalls in one or more revenue sources Capital improvements Last-minute legislation! Undesignated Fund Balance – 2012/13EOFY - $3,430,834 Assigned Fund Balance – 2012/13 EOFY - $350,000

HISTORICAL FUND BALANCE AND ENROLLMENT

Demographic Information Student Enrollment: 1,132 Employee Count: 206 Economically Disadvantaged: 79.24% Ethnicity Breakdown – Hispanic: 17.31% – African American: 40.81% – White: 37.19% – Other: 4.69% Revenue per WADA: $5,141.70

BUDGET SUMMARY

TAX SUMMARY Current Taxable Value - $766,109,163 Current Tax Rate - $ per $100 valuation Current Levy - $8,845, (after adjustments) Current Collections (as of June 30, 2014) - $8,687, Estimated Collection 7/01/2014-9/30/ $50,000 Percent of Collections – 97.33% Next Yr’s Taxable Value - $804,432,635 Next Yr’s Proposed Tax Rate - $ per $100 valuation

HISTORICAL TAX RATE

TAX RATE COMPARISON ( Required Newspaper Ad) This Yr Next Yr Avg. Mkt. Value of Home$62,675$63,396 Avg. Taxable Value$30,184$29,652 This Yr Rate/Next Yr Rate Taxes Due on Avg. Residence$348.50$ Increase (Decrease) in Tax ($ 6.14)

Success is not final, failure is not fatal, it is the courage to continue that counts. - Winston Churchill

Questions??? Thank you for your attendance!