School District of Waupaca Budget Hearing Tax Levy Certification October 29, 2015

“Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson American Poet “Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson American Poet

The Budget Trail The Final Destination

Budget Overview All Budgeted Expenses for all Funds remain the same as presented at the October 13, 2015 Regular Board Meeting. All Budgeted Expenses for all Funds remain the same as presented at the October 13, 2015 Regular Board Meeting. The District Proposes Taxing Below the Legal Allowable Revenue Limit by $1,794,688 Million Dollars The District Proposes Taxing Below the Legal Allowable Revenue Limit by $1,794,688 Million Dollars Which equates to (Fund 10) Taxing below the Legal Allowable Revenue Limit by 7.8% Which equates to (Fund 10) Taxing below the Legal Allowable Revenue Limit by 7.8%

Budget Overview The proposed budget proposes a $80,052 revenue shortfall (Fund 10 = Revenues $23,691,207 – Expenses = $23,771,259). Reason: The final budget attained an $85,255 surplus. The overall Fund 10 Revenue Budget remains the same as what was presented to the Board of Education while the overall Fund 10 expense budget remains the same as presented to the Board of Education at the October 13, 2015 Regular Board Meeting. (See Fund 10 Revenue) Therefore, the total Designated Fund Balance is projected to decline by $80,052 due to budgeting expenses more than revenues. (See Fund Balance Designation Recommendation Chart)

Factors that Contribute to the Tax levy General Aid Certification General Aid Certification Student Enrollment Student Enrollment Overall District Property Valuation Overall District Property Valuation

General State Aid Based upon a July 2015 estimate from the Department of Public Instruction general aid for the district was estimated at $8,201,281 for this year’s preliminary budget presented at the Regular Board Meeting on October 13, The final general aid certification amount, which the district received, last week reflects an increased amount as shown in Table 2.0 below.

$4,071,898 7 Year Cumulative General State Aid Loss Shifts the Tax Burden to Taxpayer

The Effect

Overall Tax Levy Comparison to Finance Meeting Projections

Student Enrollment Membership Count As I indicated at the October 13, 2015 Meeting the district anticipated a decrease in student enrollment from the prior year thus I estimated the combination of these two counts to be 2102 students. Table 3.0 shows the final student enrollment count used for revenue limit purposes below.

Overall Property Valuation At the October 13, 2015 Regular Board Meeting, the District, in conjunction with Wisconsin Public Finance Professionals, LLC (at no cost to the district) projected this year’s district’s overall property valuation would equate to an overall property valuation of $1,392,941,526. Actual property valuation was certified by the Department of Revenue October 15th with a decrease value of $1,388,993,946. (See table 4.0)

Property Valuation History

Tax Levy The necessary tax levy to support this year’s budget is $16,157,007. At this year’s Regular Board Meeting on October 13, 2015 the tax levy for the district was estimated at $16,215,366, meaning the overall tax being requested in comparison to the October 13th Meeting estimate is less. (This includes funds 10, 39, 41 and prior year property charge backs)

Fund Balance Composition Waupaca FY Annual Report

Fund Balance Designation

Advance Refunding of 2006 Bond Using Debt Service Designation $ Rather than Transfer - shown below

4. Motion - Authorizing proceeding with refinancing the District's 2006 General Obligation Refunding Bonds to achieve debt service savings, and for Wisconsin Public Finance Professionals, LLC to serve as the District's Municipal Advisor for the issuance of2016 General Obligation Refunding Bonds.

Published Budget Change Request The Annual Required Budget Publication, which is mandated to be published two weeks prior to the Budget Hearing, was published October 12, However the budget for taxes; general state aid and computer aid change annually for exact figures are not known until late in October. Therefore, in addition to approving the Tax Levy Resolution, I am requesting that the Board of Education approve the revenue budget changes (as stated in Table 5.0) in accordance to Wisconsin Statute 65.90(a).

Budget Change Request Notice is hereby given, in accordance with the provisions of Wisconsin Statute 65.90(5)(a), that the School Board of Waupaca, on 10/28/14 adopted the following changes. The following presents only adopted budget line items with changes. Unchanged line items are not presented

Malcolm Forbes once said: Malcolm Forbes once said: “Education’s purpose is to replace an empty mind with an open one”

While the purpose of the Annual Budget is to achieve educational objectives that will impact the future. While the purpose of the Annual Budget is to achieve educational objectives that will impact the future.

And we need to attend to financial numbers, in the bigger picture of what we are all about it can even be more than owing an education to our children. We can help to open the mind and heart to : life’s mysteries to be told life’s mysteries to be told wondrous possibilities that life holds wondrous possibilities that life holds the awesome potential in each to unfold the awesome potential in each to unfold

Herein Lies The Real Gold

Because if We Lose Our Hearts

Were Just Racing Off To Nowhere

Questions?