December 5, 2024 at 5:30 PM - Budget Committee Meeting

Description:  The purpose of this agenda item is to provide an update on the financial plan related to the November 2022 referendum. Attached please find an updated financial plan that lowers the fund 49 project savings and slightly increases the property tax levy in the first several years. Also attached please find the tax levy approval from November 2022 which will help explain 1 & 2 below.

Administration will review the following financial concepts: 
1) Fund 39 interest earnings
2) Fund 39 fund equity
3) Fund 49 interest earnings
4) Fund 49 project savings

The $14 million dollar borrowing will be presented for approval at the regular board meeting on December 9th. 

Description:  The purpose of this agenda item is to review the steps  we completed for the fourth draft of the budget for the 24-25 school year. In addition, we would like to discuss potential budget revisions for 24-25 and establishing an end of the year balance goal. Administration also requests a discussion on taking steps proactively to meet this goal, rather than waiting until next summer. 

The most recent bond issue rating identified fund balance level as an area of concern. Administration would prefer an end of the year balance goal of $0 or slightly positive ($0-$250,000). In order to get there, Administration would need the ability to allocate expenditures across various accounting funds. One example would be to allocate post-employment benefit expenditures to fund 73 utilizing deposits from prior years. Another example would be to allocate referendum eligible expenses from fund 10 to fund 49. The items that caused a fund balance decline in 23-24 would have the same effect in 24-25. Examples include termination benefits, health insurance changes, health insurance rate increase on July 1, district business insurance, etc. Administration is seeking committee feedback on this topic. 

Description:  The purpose of this agenda item is to discuss three special education budget items. We are providing special education financial data that was requested at the last budget committee meeting. To begin, our 23-24 high cost special education claim was the 3rd highest out of 231 districts who participated in the program. For perspective, our claim was higher than much larger districts like Appleton, Green Bay, and Eau Claire. Our 23-24 social worker claim was 14th highest out of 123 districts that submitted claims. Our transfer of service claim was $223,000 for 24-25. Attached please find some special education specific financial data that we will review at the meeting. 

We have three topics to discuss with the committee:
1) Nursing contract - The District entered into a private nursing contract for a student specific need. This contract has the potential to utilize the majority of the 24-25 contingency budget. 
2) Unfilled para-educator positions - Tiffany Loken will be present at the meeting to request converting 2 unfilled para-educator positions into 1 teaching position. These para positions were funded through the Transfer of Service funds mentioned above. 
3) Additional para-educator position - Tiffany Loken has been made aware of a student moving into our district who has an IEP requiring a full-time para. This need would be our first 25-26 Transfer of Service request. 

Description:  The HR committee is recommending approval of the following plan for the wellness clinic. Please see the notes and attachments that were provided to the HR committee:

Based on 23/24 usage trends, administration is seeking to add provider hours in the Wellness Clinic on Wednesdays to extend appointment availability.  

December - April involves increased acute employee / insured dependents illnesses and health assessment appointments.  Noting the 23/24 fill rates and anecdotal evidence of employees having difficulty making appointments during peak months, SSM is partnering to offer a flexible staffing arrangement.

The attached documents demonstrate the need and anticipated return on the investment in the clinic.

Description:  The purpose of this agenda item is to discuss future enrollment planning. Attached please find an updated enrollment projection. Administration is recommending planning for 2025-26 utilizing the 5-year average projection model. This model estimates 4,427 (+16) students in 2025-26. Our district continues the pattern of larger graduating classes being replaced by smaller kindergarten classes. Community growth then accounts for the gap. Overall, our district has stable enrollment. We used the enrollment projections to then calculate class size information for open enrollment for the January 2025 school board meeting. We also use the enrollment projections for staffing projections which are shared at the January budget committee meeting.

Description:  The purpose of this agenda item is to provide a high level overview of 25-26 budget planning. On the revenue side, please note the following assumptions:
- $325 per student on the revenue limit formula
- 32% special education categorical aid
- Student enrollment per the 5-year average projection (+16)
- Interest earnings decline by $100,000
- Act 12 (personal property tax) revenues remain in place
- New November 2024 operational referendum fully utilized in 25-26

Please note the following expenditure assumptions:
- 4.6% increase in CPI/compensation systems
- Classified staff referendum approved pay increase
- 5% health insurance increase
- 5% increase for utilities and transportation
- Added middle school utilities in 26-27
- $70,000 increase to district property insurance

The following expenditure categories will need to be addressed:
- Termination benefits
- Post-employment benefits
- Health insurance changes/increases
- Maintenance
-Contingency/Fund balance

There will be significant statewide discussions regarding special education categorical aid. Increases in special education categorical aid decrease the required transfer from fund 10. Any decreases in the fund 10 required transfer should be allocated accordingly to the expenditure categories that need to be addressed above. In the event that special education categorical aid is not increased through the state budget, budget reallocation will be necessary for the categories mentioned above. The bottom line is that any new expenditures will likely not be able to be covered through new funding, but will have to be addressed through budget reallocation strategies. 
 

Description:  The purpose of this agenda item is to review a draft of the 23-24 audit report and the updated actuarial report. Administration is requesting approval of the 23-24 audit at the December regular board meeting. We are required to update the actuarial report every other year. We have great news to share. The District's net OPEB liability has decreased from $5.6 million to $3.3 million. This reduction has occurred due to the handbook change for the teacher compensation system, changing demographic of staff, and the increase in assets in our fund 73. 

Description:  The purpose of this agenda item is to provide an update on the Data Wrangler implementation. The trial period started on October 1st as the meters and all technical systems have been installed. The district has met with Data Wrangler to review the initial data. This first meeting led to a secondary meeting that involved NAMI, our HVAC contractor. A number of savings opportunities were reviewed. Administration has implemented some of the opportunities and continues to evaluate others. Attached please find an example of the type of opportunities that are being evaluated. We will continue to bring this forward as a future agenda item.

We also were contacted by WPPI (Wisconsin Public Power), which Waunakee Utilities participates in, to complete a grant request for our efforts with energy reductions connected to Data Wrangler. 

Description:  If time permits, Administration would like to begin discussion on the district fund balance policy. Attached please find the current policy. For perspective, the most recent statewide data for fund balance is 26% and 25% in Dane County. 

As an example, the increase in fund 10 expenditures from 23-24 to 24-25 is $4,143,522. A fund balance goal of 15% would require a 24-25 end of the year balance of +$621,528 and a 10% goal would require a positive balance of +$414,352. 

Description:  The purpose of this agenda item is to discuss the district transportation policy. As a reminder, we have attached the board approved hazardous transportation plan that begins in the 26-27 school year for the middle school (can be seen on page 19 of the attachment). Administration would like to discuss the next steps in our evaluation of the transportation policy. In addition, we would like to discuss a budget committee member's request for information. 

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