1. A Report on District Finances: Past, Current and Future.

2. Financial Past Passed Bond Issue in 2006 to continue with the current levy to build new high school. Increased construction costs meant we had to also do a lease-purchase agreement for part of the facility. Passed a Bond Issue in 2013 to continue with the current levy to build an Athletic Complex at the High School.

3. Financial Past We have been incrementally increasing our tax levy over the last few years. Currently.9725, about 16% of your recent bill. Our plan is to keep the debt service at that level. We have kept our reserves at an excellent level, pretty steady between 25 and 30%. We were able to give all staff members an increase of around 2.5% last year.

4. Current Finances This year’s operating budget will be the highest on record for Lathrop R-II. Our previous high was in 2008-2009 before the Recession started. A little misleading due to construction expenditures.

5. 2015-2016 Fund Balances YTD BUDGET SUMMARY: Fund 1 Fund 2 Fund 3 Fund 4 Total TOTAL RECEIPTS 4,231,051.02 5,112,359.00 646,438.83 510,639.92 10,500,488.77 BALANCE JULY 1 2,741,488.78 - 7,141,140.60 2,767,472.58 12,650,101.96 TOTAL RECEIPTS & BALANCE 6,972,539.80 5,112,359.00 7,787,579.43 3,278,112.50 23,150,590.73 TOTAL EXPENDITURES 3,474,729.22 6,001,066.57 842,083.44 3,608,740.75 13,926,619.98 BALANCE JUNE 30 3,497,810.58 (888,707.57) 6,945,495.99 (330,628.25) 9,223,970.75 TRANSFERS (1,401,727.57) 888,707.57 513,020.00 - BALANCE JUNE 30 W/TRAN 2,096,083.01 - 6,945,495.99 182,391.75 9,223,970.75

6. Current Finances The Assessed Valuation of the district increased slightly to $60,200,000. This is up.22% from last year, but still lower than the all time high in 2011 of $62,200,000.

7. Current Finances We are keeping our debt service levy at.9725, we could have increased it to $1.47. We are projecting a carryover figure of about 22%. That means we’re planning to spend about 7% more than we’re expecting to receive this year. Our enrollment is back up again this year, currently about 930, which would be the second highest on record. We get about $4500 per student.

8. Financial Future We get about 45% of our revenue from the state. The state has increased their portion this year, as long as the economy holds up. We receive about 5% of our funds from the federal government. We receive about 5% from the County. We receive the remaining 45% from our local taxes.

9. Financial Future - Debt Recently, we have refinanced some of our old debt allowing us to save over $500,000 in interest over next 13 years and allow us to level out those payments.

10. Financial Future - Debt Current Debt 2006 Bonds $6.5 Million* 2006 Lease Purchase $1.7 Million 2002 Energy Savings $635,000 2013 Solar Power $125,300 2015 Bonds: $2.7 Million Total Debt $11,660,300 * We actually have 2 of these due to refinancing.

11. Financial Future What is the difference between operating and debt service? Operating is staff and supplies and maintenance. Debt Service is just for paying off bonds/buildings. Current debt service levy is.9725. Voter approved tax ceiling is 4.39. Because of the taxation laws, we are only able to levy 4.36 this year.

12. Current and Past Levies YearOperatingDebt Total 20164.3619 $ 0.9725 $ 5.3344 2015$4.354 $ 0.9725 $ 5.3265 2014$4.39 $ 0.8725 $ 5.2625 2013$ 4.39 $ 0.6725 $ 5.0625 2012$ 4.39 $ 0.4725 $ 4.8625 2011 $ 4.3175 $ 0.4225 $ 4.7400 2010 $ 4.2102 - $ 0.5209 - $ 4.7400 2009 $ 4.2414 - $ 0.4486 - $ 4.6900 2008 $ 4.2414 - $ 0.4486 - $ 4.6900 2007 $ 3.8400 - $ 0.8500 - $ 4.6900 2006 $ 4.3900 - $ 0.3000 - $ 4.6900

13. Area Comparisons We are the 2 nd highest among 9 school districts in our County. Kearney is highest at $5.35 Cameron and Lawson are the lowest at $4.14

14. Financial Future Looking at Possible Funding Needs Facilities Programs See the two related documents.

15. Questions I’ll try to answer any questions. If I don’t know, I’ll get back to you. If you have any questions, please feel free to contact me: Chris Fine 816-528-7500 chris.fine@lathropschools.com