June 7, 2022 at 7:30 AM - Budget Committee Meeting

Description:  The purpose of this agenda item is to review the projected end of the year balance. Administration would like to discuss the topic of the annual Fund 73 contribution and the end of the year building/department budgets. Fund 73 is the Employee Benefit Trust Fund. We have held off on making the payment for 2021-2022 until the end of the fiscal year. The main reason for holding off the payment was to determine whether or not these funds would be needed for 2022-2023 budget planning. We would need to make this payment by July 31, 2022. Administration is seeking feedback from the committee on making this payment. Administration is also seeking feedback from the committee regarding our prior decision on end of the year building/department funds.

Description:  The purpose of this agenda item is to review the formal budget change process that will be presented to the School Board for approval in June. The budget change document is attached. 

All budget revisions are entered into the Skyward Financial System using the Skyward Budget Revision process. The budget revisions for 21-22 include: 

* changes in grant allocations (both Fund 10 and 27)
* changes to the State of Wisconsin Library Aid (Fund 10)
* increase in the district's legal budget
* increase in the district's utilities budget
* decrease the district's transportation budget
* decrease the district's contingency budget
* add a portable classroom budget (funded from 20-21 end of the year balance)
* add a music instrument budget (funded from 20-21 end of the year balance)
* increase in revenues for federal reimbursement of unemployment costs
* increase miscellaneous revenues such as property insurance refund, prior year taxes refund, etc.
* increase state special education categorical aid
* Fund 39 debt service budgets to record the debt repayment approved by the school board in April
* transfer of funds between Fund 10 & 27

All budget revisions will be presented to the School Board for approval at the June 13th School Board Meeting. 

Description:  The purpose of this agenda item is to review the fund balance classifications. The School Board is annually required to approve fund balance accounts prior to the close of the fiscal year. I have attached the fund balance accounts that are currently being used, and were last presented to the school board at the conclusion of the 2020-2021 audit. Administration is recommending no changes. Please let me know if you have any questions on the fund balance classifications.

Description:  The purpose of this agenda item is to discuss the next steps in the 2021-2022 budget process. Attached please find the budget timeline. Please note that the Second Draft of the Budget will be presented at the regular June Board Meeting.

Description:  Please note that the second draft of the budget is based on the following:
1. The $0/student increase in the per pupil categorical aid, with a $0/student increase in the revenue limit formula
2. An increase in the percentage of State Special Education Categorical Aid to ~30%
3. The personnel cost line includes an inflationary salary increase of 4.7%, implementation of the teacher and classified staff compensation systems, a 0% increase in dental insurance rates, and a 0% increase for health insurance rates
4. The capital maintenance projects are funded from Fund 41
5. The first draft includes an increase of 9.0 FTE, as outlined on page 13 of the document.
6. The debt service fund includes a debt service repayment in order to keep the district tax rate consistent.
7. All of the remaining budget requests have been placed on hold at this time

The second draft of the budget included the following changes from the first draft:
1. Updates to the Food Service budget (Fund 50), and other budgets as a result of School Board approved student fees
2. Updates to the gift fund (Fund 21)
3. Updates to building/department revenue accounts and corresponding expense accounts
4. Updates to the state common school fund grant

The changes between the first and second draft of the budget have been highlighted in yellow, and these changes will be reviewed by the administration at the meeting. 

The third draft of the budget in July will include:
1. Grant allocations
2. Staffing updates based on additional schedule changes, reallocation proposals or new positions
3. Updates to the Community Services budget (Fund 80)
4. Updates to the New Teacher program budget (Fund 99)
5. Discussion on Esser 3 additional allocation
Please let me know if you have any questions on the second draft of the budget.

Description:  The November 2022 referendum process will include both a capital referendum question and an operational referendum question. Attached please find two spreadsheets that incorporate an initial process to develop an operational referendum question. There is a spreadsheet with a $6 million option and a spreadsheet for a $10 million option. Please note, the district's financial advisor will be attending the June 27 school board meeting to discuss options for the capital/operational referendum questions and the concept of a consistent tax rate across time.

The spreadsheet that is attached includes the following components:
1. All staffing requests received through the 3 year budget planning process
2. All non-staffing requests received through the 3 year budget planning process
3. The initial budget planning process for 2022-2023
4. Estimated state budget revenue increases for the next 2 state budgets
5. Additional Esser 3 funding
6. Estimated salary increases to reflect both CPI & compensation system increases for the following four fiscal years
7. TBD on operational costs for the new Heritage Elementary School and the new Middle School

Administration is seeking feedback from the budget committee on the format and components being used to develop an operational referendum question. We are not seeking any decisions at this time, but rather a discussion on the process the school board would like to follow over the next several meetings as the operational referendum question is determined.

Description:  The purpose of this agenda item is to review the lease agreements for the 22-23 school year. I have attached the lease agreements for your review, except Dane County as they have their own lease document that we have not received yet. 

The district currently has leases with the Wisconsin Youth Company (K-4 after-school program for school year), Dane County (1 office at Heritage Elementary School), and the New Teacher Project (office space at Heritage Elementary School). We are recommending approval of a summer lease for the Wisconsin Youth Company this summer.
 
The administrative recommendation is to approve all four leases at the current rates with the Wisconsin Youth Company lease changing from $2,700 to $2,800 per building as well for summer school, the Dane County lease continuing at $75 per month, and the New Teacher Project lease continuing at $300 per month. 

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