Integrity. Commitment. Performance.™ PMA Financial Planning Program January 22, 2014 Wheaton...

Integrity. Commitment. Performance.™

PMA Financial Planning ProgramJanuary 22, 2014Wheaton Warrenville

CUSD 200

Integrity. Commitment. Performance.™2Data & Assumptions provided by District

PMA Financial Planning Program| Wheaton Warrenville CUSD 200

Process

• What is the Financial Planning Program (FPP)?– A comprehensive, interactive planning process that can be

dynamically updated to assist the District in making important financial decisions.

• How are we going to use the plan?– Budget Planning– Trend Analysis– Set Fiscal Policies– Annual Update and Reassessment– Scenario Analysis



Data Elements

• Annual Financial Reports (AFRs) for the past five years• District’s FY14 Budget - Base for financial projections• Historical Tax Extension Reports• Equalized Assessed Valuations / New Construction• Contract and scattergram for certified staff• Salary & Benefits information• Enrollment• Student/staffing ratios



Operating Funds Revenue Budget – $153,674,000

Operating Funds: Educational, Operations & Maintenance, Transportation, IMRF, and Working Cash Funds

REVENUE BY SOURCE DETAIL - FY 2014

Property Taxes78.9%

Other Local5.2%

General State Aid4.2%

Other State7.0% Federal

4.8%



Revenue Assumptions – Property Taxes

Consumer Price Index (CPI) - Levy Years

0.1%

2.7%

1.5%

3.0%

1.7%

2.4% 2.4% 2.4% 2.4% 2.4%

1.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Actual Projected



Revenue Assumptions – Property Taxes

New EAV Growth (In Millions)

$23.2

$86.5

$17.9 $21.1

$12.0$20.0 $20.0

$40.0

$20.0 $20.0 $20.0

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Actual Projected



Revenue Assumptions – Other Local Revenue

• CPPRT:– Projected at current FY14 budget ($2.2 million annually)

• Investment Income:– 0.15% rate of return

• All other local revenues:– Projected at current FY14 budget



Revenue Assumptions – State & Federal• State Revenue

– General State Aid (GSA)• Factor of enrollment - Average Daily Attendance (ADA)

• Foundation Level – currently $6,119 prorated to 89%– No Foundation Level increases projected– 89% annual proration for FY15, 85% thereafter

• Remain in Alternate Formula Funding – Other State Categorical Grants

• Projected at current FY14 budget levels – Except $200,000 transportation reduction resulting from bid cost savings

• Federal Revenue– Projected at current FY14 budget levels

• Except $142,000 reduction for IDEA Room & Board reimbursement



General State Aid Revenue (in Millions)

$7.21

$6.56 $6.44 $6.32 $6.43 $6.21 $6.14 $6.05 $5.96$6.52

0

1

2

3

4

5

6

7

8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Actual Projected



Revenue – Sensitivity

• Tax Levy:– CPI 1% ≈ +/- $1.3 million– New Property: $1 million ≈ +/- $45,000– Tax Collection rate: 0.1% ≈ +/- $112,000

• General State Aid– $100 Foundation Level ≈ +/- $113,000– 1% proration ≈ +/- $73,000



Operating Funds Expense Budget – $153,539,000


FY 2014 EXPENDITURES BY OBJECT

Salaries67.3%

Benefits11.4%

Purchased Services12.5%

Supplies And Materials

4.0%

Capital Outlay1.0%

Other Objects3.7%

Non-Capitalized Equipment

0.0%



Expenditure Assumptions• Salaries

– Teachers• FY15: per current contract• FY16-19: CPI annual increases, plus lane movement ($500,000)

– All Other Staff• CPI annual increases



Expenditure Assumptions - Other

• Health & Dental Benefits– 7% annual increases

• Purchased Services, Supplies, Capital Outlay, Tuition– CPI annual increases– 2.5% Transportation increases per contract for FY15 &

FY16, then CPI



Staffing Assumptions

Excluding administration

CERTIFIED STAFF (FTE)

1,069.2 1,069.2 1,069.2 1,069.2 1,069.2 1,069.2

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

2014 2015 2016 2017 2018 2019Actual Projected



Additional Assumptions

• No legislative changes in school funding

• No change to PTELL (Tax Cap)

• Includes potential TRS pension shift starting in FY16 compounding @ .5% per year ($450,000 per each .5%)

• Includes known retirements in future years (112 over next 3 years) with replacement teachers hired in at the BA+24 Lane Step 3

• Current FY14 Budget is accurate basis for projections



Projected Revenues vs. Expenditures - Aggregate


BUDGET

FY 2014 FY 2015 % chg FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chgREVENUE

Local $129,229,900 $131,266,762 1.58% $134,557,032 2.51% $138,908,484 3.23% $143,387,588 3.22% $147,500,396 2.87%State $17,129,400 $16,967,012 -0.95% $16,610,632 -2.10% $16,541,443 -0.42% $16,446,527 -0.57% $16,361,883 -0.51%

Federal $7,314,700 $7,172,700 -1.94% $7,172,700 0.00% $7,172,700 0.00% $7,172,700 0.00% $7,172,700 0.00%Other $0 $0 $0 $0 $0 $0

TOTAL REVENUE $153,674,000 $155,406,474 1.13% $158,340,364 1.89% $162,622,627 2.70% $167,006,815 2.70% $171,034,979 2.41%

EXPENDITURESSalary and Benefit Costs $120,879,100 $123,483,520 2.15% $127,105,231 2.93% $127,344,713 0.19% $131,763,448 3.47% $136,488,289 3.59%

Other $32,659,900 $33,220,669 1.72% $34,022,982 2.42% $34,837,134 2.39% $35,670,825 2.39% $36,524,525 2.39%TOTAL EXPENDITURES $153,539,000 $156,704,189 2.06% $161,128,214 2.82% $162,181,847 0.65% $167,434,273 3.24% $173,012,814 3.33%

SURPLUS / DEFICIT $135,000 ($1,297,715) ($2,787,850) $440,780 ($427,458) ($1,977,835)

OTHER FINANCING SOURCES/USESTransfer Among Funds (Net) $0 ($500,000) ($500,000) ($500,000) ($500,000) ($500,000)

Sale of Bonds $0 $0 $0 $0 $0 $0Other Financing Sources $0 $0 $0 $0 $0 $0

Other Financing Uses ($860,000) $0 $0 $0 $0 $0TOTAL OTHER FIN. SOURCES/USES ($860,000) ($500,000) ($500,000) ($500,000) ($500,000) ($500,000)

SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($725,000) ($1,797,715) ($3,287,850) ($59,220) ($927,458) ($2,477,835)

BEGINNING FUND BALANCE $44,583,894 $43,858,894 $42,061,179 $38,773,329 $38,714,109 $37,786,651

PROJECTED YEAR END BALANCE $43,858,894 $42,061,179 $38,773,329 $38,714,109 $37,786,651 $35,308,816

FUND BALANCE AS % OF REVENUES 28.54% 27.07% 24.49% 23.81% 22.63% 20.64%

REVENUE / EXPENDITURE PROJECTIONS



Historical / Projected Fund BalancesProjected Year-End Balances

(Educational, Operations and Maintenance, Transportation, IMRF, and Working Cash Funds.)

$37,112,266

$28,087,893$29,757,129

$40,913,746

$44,583,894 $43,858,894$42,061,179

$38,773,329 $38,714,109$37,786,651

$35,308,816

$8,317,452

($2,181,938) ($2,466,114)

$7,291,865$8,854,651

$7,287,702$5,641,726

$1,637,825($460,149)

($2,564,077)

($5,968,343)($10)

$0

$10

$20

$30

$40

$50

Educational Operations and Maintenance Transportation IMRF Working Cash

Mill

ion

s

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FY End Balances Est. Low-Point Balance



ISBE Financial Profile

3.35

3.00

3.35

3.80 3.803.70

3.35

3.00 3.00 3.00 3.00

0

0.5

1

1.5

2

2.5

3

3.5

4

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0 - Watch - 2.61

2.62 - Early Warning - 3.07

3.08 - Review - 3.53

3.54 - Recognition - 4



Copyright 2014 PMA Financial Network, Inc.

The information contained herein is solely intended to suggest/discuss potentially applicable financing applications and is not intended to be a specific buy/sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a definitive written agreement.

The analysis or information presented herein is based upon hypothetical projections and/or past performance that have certain limitations. No representation is made that it is accurate or complete or that any results indicated will be achieved. In no way is past performance indicative of future results. Changes to any prices, levels, or assumptions contained herein may have a material impact on results. Any estimates or assumptions contained herein represent our best judgment as of the date indicated and are subject to change without notice. Examples are merely representative and are not meant to be all-inclusive.

The information set forth herein was gathered from sources which we believe, but do not guarantee, to be accurate. Neither the information, nor any options expressed, constitute a solicitation by us for purposes of sale or purchase of any securities or commodities. Investment/financing decisions by market participants should not be based on this information.

You should consider certain economic risks (and other legal, tax, and accounting consequences) prior to entering into any type of transaction with PMA Securities, Inc. or PMA Financial Network, Inc. It is imperative that any prospective client perform its own research and due diligence, independent of us or our affiliates, to determine suitability of the proposed transaction with respect to the aforementioned potential economic risks and legal, tax, and accounting consequences. Our analyses are not and do not purport to be appraisals of the assets, or business of the District or any other entity. PMA makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax, or accounting effects of consummating a transaction. PMA cannot be relied upon to provide legal, tax, or accounting advice. You should seek out independent and qualified legal, tax, and accounting advice from outside sources.

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Integrity. Commitment. Performance.™ PMA Financial Planning Program January 22, 2014 Wheaton...

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