1. Covington County School District FY 13 Budget Hearing July 23, 2012 – 5:30pm

2. Disclaimer Revenue numbers are estimates only and are being provided for planning purposes only.

3. Mission of Covington County School District’s Budget Financially accommodate the purpose of the school district’s mission statement. Support the education of the current enrollment by providing for rising cost. Maintain the integrity of the District. Provide financial opportunities to take every student to the next level.

4. Covington County Schools Enrollment 2011-2012 ------- 3108 students 2010-2011 -------- 3113 students 2009-2010 ------- 3184 students

5. Where does THE Money GO? Instructional $15,533,444.00 District Administration $ 912,808.00 School Administration $ 1,554,264.00 Transportation, Maintenance, and Other Expenses $ 5,849,639.00

6. Maintaining the Level of Effort Step increase for instructional staff, retirement increase (From 12.93% to 14.26%) Health Insurance Cost (possibility of 2% increase) Increase transportation cost FY12 Fuel Cost $343,500 FY13 Budgeted $390,000

7. Where does our money come from? Local Taxes 22% State 53% Federal 19% 16 th Section 3% Other Local 3%

8. Millage Report of the Surrounding Area Smith County ------- Simpson County ----- 41.12 mils Jeff Davis County --- 45.7 mils Covington County --- 31.5 mils

9. The Basic Pieces Average Classroom Teacher Salary $43,976.00 Cost of Substitute Per Day $ 70.00 non-certified $100.00 certified teacher (16) National Board Teachers Value of 1 mill - $170,000.00 Administrative Cost- CCSD ranks 88 of 152 in the state. Average Enrollment FY12 3108 students.

10. Covington Co. School District - FY13 Budget Summary Breakdown of Revenue % of Total Revenue Local Revenue $ 6,778,472.0025.5% State Revenue $ 14,040,982.9652.8% Federal Revenue $ 5,018,987.5618.8% 16th Section Revenue $ 792,698.002.9% Total Revenue $ 26,631,140.52100% Breakdown of Expenditures % of Total Expenditures Instruction $ 15,356,115.1657.9% Support Services $ 8,759,448.4932.9% Non-instructional Services $ 1,802,720.016.8% 16th Section $ 76,251.200.3% Debt Service $ 555,042.502.1% Total Expenditures $ 26,549,577.36100% Projected Ending Fund Balance as of 06/30/12: $ 11,073,930.26 Total Revenue $ 26,631,140.52 Total Expenditures $ (26,549,577.36) Projected Ending Fund Balance as of 06/30/13: $ 11,155,493.42

11. DISTRICT MAINTENANCE Fund Summary Breakdown of Revenue Ad Valorem $ 5,645,954.00 Mineral Tax $ 1,000.00 Summer School Tuition $ 3,000.00 Bank Interest Earned $ 4,000.00 Private Donations $ 15,000.00 Other Local Miscellaneous $ 52,000.00 Homestead Exemption $ 217,890.00 MAEP $ 13,013,707.00 Other State - Master Teacher $ 166,600.00 Tax on Rail Cars/Heavy Trucks $ 80,000.00 State/Federal Vocational $ 398,000.00 Indirect Cost $ 159,529.80 Total Revenue $ 19,756,680.80 Breakdown of Expenditures Salaries/Benefits $ 16,834,779.69(Increase in Ret Match = 223,703.07) Purchased Professional Serves $ 191,640.00 Repairs/Maintenance $ 68,800.00 Bldg Maint Supplies $ 143,000.00 *Building Utilities $ 417,649.76(*This is net - after applying e-rate discount.) Cleaning Services/Waste Pickup $ 39,800.00 Equipment Rental $ 40,250.00(Bldg rugs, mats, maint uniforms, etc) Tuition to other institutions $ 78,900.00(private placements of special students) Property/Liability Insurances $ 420,000.00 Postage $ 2,704.00 Advertising $ 1,700.00 Travel/Reg Fees/Lodging $ 30,350.00 Supplies (Ofc & Instructional) $ 91,810.00** Includes new GED Program Instructional Software $ 272,511.92 Bus Tires $ 22,000.00 Bus Repair Parts $ 56,500.00 Bus Repair Exps by Private Garages $ 40,000.00 Bus Fuel $ 390,000.00 Bus Oil/Lubricants $ 7,500.00 Textbooks $ 58,500.00 Library Books/Periodicals $ 21,840.00 Equipment Purchases $ 87,912.00 Dues/Fees $ 8,450.00 16th Sect Principal Loan Payment $ 304,642.50(Payment for Loan approved in FY12) SAC Cafeteria Re-roofing Costs $ 175,000.00(160,000 = Contractor; 15,000 = Engineer) $ 19,806,239.87

12. DISTRICT MAINTENANCE Fund Projected Ending Fund Balance as of 06/30/12: $ 1,046,154.20 Total Revenue $ 19,756,680.80 Total Expenditures $ (19,806,239.87) Projected Ending Fund Balance as of 06/30/13: $ 996,595.13 Board Policy 5% $ 987,834.04

13. What will the millage rate be? The District’s request is in $$’s. The Board of Supervisors sets the mils. So we can only estimate.

14. Summary The increase in 2012-2013 operating local advalorem request is estimated $320,794.00 FY12 millage rate : 31.5 – Operating Mils 1.8 – Debt Service Total 33.3 Mils FY13 Request : $5,645,954.00 Operations (33.2) $ 85,000.00 Debt Service (.5) Total 33.7 Mils Anticipated

15. Summary Continued Budgeted Expenditures $26,569,110.36 Budgeted Revenue $26,631140.52

16. Published Notice of Hearing The following notice’s form and content is controlled by Miss. Code Ann. Section 27-39-207. This section is to clarify the impact. Due to a reduction in state funding, programs required by Legislature, increases in local operating costs and growth in enrollment, the District is requesting more local funding dollars for the 2012-2013 school year than the District requested in 2011-2012 school year. ___________________________________________________________ Notice of Tax Increase-Covington County School District The Covington County School District will hold a public hearing on its proposed school district budget for fiscal year 2012-2013 on July 23, 2012 at 5:30 pm at Covington County Vocational Center, 1200 South Dogwood Avenue, Collins, MS 39428. At this meeting, a proposed ad valorem tax effort increase will be considered. The Covington County School District is now operating with projected total budget revenue of $ 27,513,701.51 (20 percent) of $ 5,356,665.00, of such revenue is obtained through ad valorem taxes. For next fiscal year, the proposed budget has total projected revenue of $ 26,631,140.52 of that amount, (22 percent) of $ 5,645,954.00 is proposed to be financed through a total ad valorem tax levy. This increase in ad valorem tax revenue means that you will pay more in ad valorem taxes on your home, automobile tag, utilities, business fixtures, and equipment and rental real property. Any citizen of Covington County School District is invited to attend this public hearing on the proposed ad valorem tax increase, and will be allowed to speak for a reasonable amount of time and offer tangible evidence before any vote is taken. ___________________________________________________________

17. Questions?