Year Of Success Track October 3 2013 Brad Adams School Finance Consultant DPI Bruce Anderson School Finance Consultant DPI Bob Avery Director of Business Services Beaver Dam Unified School District ID: 749290
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Slide1
Revenue Limits
WASBO Fall Conference 2013“Year Of Success” Track October 3, 2013Brad Adams – School Finance Consultant, DPIBruce Anderson – School Finance Consultant, DPIBob Avery, Director of Business ServicesBeaver Dam Unified School DistrictSlide2
REVENUE LIMITS….
….will determine approximately 85-95% of your general fund’s revenue budget!2
Go to
dpi.wi.gov/
sfs
/
revlimworksheet
to
load your district’s
worksheet and
work along with us as we go through
the presentation and worksheet.Slide3
Revenue
Limits Review
The Revenue Limit
controls
the following revenues:
General Fund (Fund 10)
Property Tax Levy
General Aid:
Equalization Aid (for most districts)
Chapter 220 (Integration) Programs, and Special Adjustment Aids.Computer AidNon-Referendum Debt (Fund 38) LevyCapital Projects (Fund 41) Levy
3Slide4
Revenue
Limits Review
The Revenue Limit
does not
control the following revenues:
School Fees
Categorical Aids (Library, Transportation, Sparsity, SAGE, High Poverty Aid
, High Cost Transportation,
etc.)State and Federal GrantsGate ReceiptsDonationsTax Levies for Referendum Approved Debt (Fund 39) and Community Service (Fund 80) Funds4Slide5
Follow along with your
13-14 worksheet as we walk through the sample district worksheet.Four Step Process:Step 1: Build the Base Revenue Per Member.
(
Worksheet lines 1-3)
Step 2:
Calculate
New
Revenue
Per Member(Worksheet lines 4-7) Step 3: Determine Allowable Exemptions.(Worksheet lines 8-11)Revenue Limits5Slide6
Step 4:
Determine Levy & Computer Aid Amounts. Controlled AmountsLevies for Funds 10, 38, 41DOR Computer Aid(Worksheet lines 14, 17 & 18)
Non-Controlled Amounts
Levies for Funds 39 & 80
Prior-Year Chargeback (Fund 10,
Src
212)
(Worksheet line
15c)
Revenue Limits6Slide7
$75.00 per Member (
line 6) in 2013-14$150.00 per Member in 2014-15$150.00 per Member each year “thereafter”Subject to Legislative action – may be eliminated in the next bienniumNo longer included on the Revenue Limit worksheet as it will NOT be affected if the district chooses to under-levy.
Per Pupil Categorical Aid
7Slide8
8
Revenue Limit WorksheetSlide9
9
Revenue Limit WorksheetSlide10
10
Revenue Limit Worksheet
Green
cells are formula cells and will auto calculate the amount for that cell based on the values entered in other cells.
Yellow
cells pull data on file with DPI and loaded on the “Data” tab of the worksheet.
Line 12A State General Aid reflects the July 1 aid estimate.
This WILL be updated on Oct. 15.
Pink
cells require district entry.Note: some of the pink cells will become yellow cells as additional data become available, such as property values and 2013 enrollment data.Slide11
2012-13
2013-14
11
*
NOTE:
Next Year levy for non-recurring exemptions = Line 10 – under-levy amount.
*
*
Step 1: Build the Base Revenue
Line 1Slide12
Step 1: Build the Base Revenue
Line 1ITEM12-13 RL Line+October 15 Certified General Aid
Line 12A
+
High Poverty Aid
Line 12B
+
State Aid for Exempt Computers
Line 17
+Fund 10 Tax LevyLine 19+Fund 38 Tax LevyLine 14B+Fund 41 Tax LevyLine 14C+Low Revenue Ceiling AidLine 16-Revenue Limit PenaltyFrom DPI-Levy for Non-Recurring Exemptions Non-Recurring ReferendaLine 10A
Declining EnrollmentLine 10B Energy EfficiencyLine 10D
Hold
Harmless
Line 7B
Prior-Year Data (
2012-13)
2013-14
Base
12Slide13
Step 1: Build the Base Revenue
Line 1
13Slide14
Step 1: Build the Base Revenue
Line 2
Previous three year average membership =
September (Third Friday) counts
+
40% of Summer School FTE
For
2012-13
, use years
2010, 2011, and 201214Slide15
2012-13 Line 1
÷Base Membership Previous 3-Year Average
Line 2
(Fall
2010, 2011
,
2012)
=
Base Revenue
Per MemberLine 3
$6,367,931674
$
9,447.97
Step 1: Build the Base Revenue
Line 3
15Slide16
Step 2: New Revenue per Member
Line 4Line 4A: Each year, under current law, each district’s per pupil revenue limit may change.Historically was an inflationary increase.
Recently has been fixed dollar amounts.
For 2013-14,
line 4A =
$75.00.
For 2014-25, line 4A = $75.00.
Future years = $0. May change with legislative action in the next biennium.
16Slide17
Line 4B:
Under current law, if after adding line 4A to line 3, a district has a per pupil base revenue per member of under $9,100 (called a “low revenue ceiling”) the per pupil revenue limit is adjusted up to the ceiling. Line 4B will automatically pre-fill if your district meets this criteria. Step 2: New Revenue per Member
Line 4
17Slide18
Line 4C:
If your district participates in a CCDEB, please call the DPI School Finance Team for further instructions for Line 4C.Line 4 = Line 4A + Line 4B + Line 4CStep 2: New Revenue per Member
Line 4
18Slide19
Step 2: New Revenue per Member
Line 5Line 5 is the sum of Lines 3 and 4 (auto-calculates).19Slide20
Step 2: New Revenue per Member
Line 6Current three year average membership = September (Third Friday) counts+40% of Summer School FTEFor 2013-14,
use years
2011
,
2012
,
and
2013
20Slide21
Step 2: New Revenue per Member
Line 7Line 7 Revenue Limit = Line 7A + Line 7B
Line 7A = Line 5 x Line 6
If Line 7A is less than Line 1 (below) the difference will automatically calculate in Line 7B. This is a
non-recurring
exemption.
Line 7B = Line 1 – Line 7A, but not < 0.
21Slide22
Step 2: New Revenue per Member
Lines 3-7Calculate a New Revenue Limit22Slide23
Step 3: Exemptions
Lines 8-11Exemptions to the Revenue Limit allow districts to levy additional amounts up and above the amount generated by the computation up to this point.
Line 8
identifies Recurring Exemptions.
Line 10
identifies Non-Recurring Exemptions
.
(Line 7B is also non-recurring and is treated the same way as Line 10.)
It’s important to understand the distinction between the two.
23Slide24
Recurring Exemptions – Permanently in Your Base
BaseNon-Recurring Exemptions – One Year Only
Recurring
This Year
Next Year
Base
Base
Non-Recurring
Base
This YearNext Year
Recurring v Non-Recurring
Know the Difference!
24Slide25
Step 3: Exemptions
Line 8
Recurring
Exemptions (Lines 8A-E) are base-building – that is, if the district taxes for any of this additional authority, the levy amount is
included
in the subsequent years’ base.
Any unused recurring authority is eligible for 100% carryover into the next year.
25Slide26
Line 9 = Line 7 + Line 8
Step 3: ExemptionsLine 926Slide27
Step 3: Exemptions
Line 10Non-Recurring Exemptions (Lines 10A-E) are not base-building – that is, if a district taxes for any of these exemptions, the amount is not
included in the succeeding year’s base.
In addition, any unused non-recurring authority
is not
eligible for carryover in the next year. Districts have one, and only one, opportunity to use
non-recurring
exemptions
.
27Slide28
Step 3: Exemptions
Line 10
Line 10B, Declining Enrollment Exemption, will auto-fill based on the
2013 membership
numbers entered on the left side of the worksheet
.
Line 10E, is a change
per
2013 Wisconsin Act 20
, “Prior Year Open Enrollment (uncounted pupils)” has been moved from Recurring to Non-Recurring Exemption.28Slide29
The decline in the three-year average of 1 FTE is multiplied by the new per pupil limit on Line 5 to determine the exemption amount.
29
Step 3: Exemptions
Line 10B – Declining EnrollmentSlide30
Line 11 = Line 9 + Line 10
Step 3: ExemptionsLine 1130Slide31
Line 11 is the final “Revenue Limit With All
Exemptions” for your district.This is the total revenue your district can receive from the combination of Property Tax for Funds 10, 38, and 41 + State General Aid +Equalization, Special Adjustment, and Integration AidsHigh Poverty Aid +State Computer Aid
Step 3: Exemptions
Line 11
31Slide32
“Fly-Over”
ReviewLines 1 – 1132Slide33
Line 11 represents the total amount of resource your district will get from property tax, state general aids, and exempt computer aid. This will equal about 70-90% of total revenues for most districts and 85-95% of general fund revenues.
For budgeting purposes, it’s very important to compare this Line 11 with the previous year’s Line 11. Major decreases in Line 11 from year to year can have serious implications for your budget.Remember that results for 2011-12 will skew analysis trending due to the 5.5% reduction in Line 4A.
Comparing Line 11s
from Year to Year
33Slide34
Comparing Line 11s
from Year to YearTotal Revenue Limit with Exemptions
Year 1
Year 2
Year 3
Total Revenue Limit with Exemptions
Total Revenue Limit with Exemptions
Decreasing resources indicates the need for the district to evaluate current programs for efficiency, identifying cost-saving measures.
The earlier in the budget you know this, the better.
34Slide35
Controlled Amounts – Lines 12-14, 17, 18
State General (12A)Poverty Aid (12B)Fund 10, General Fund Levy (18)Fund 38, Non-Referendum Debt Service Levy (14B)Fund 41, Capital Projects Levy (14C)Computer Aid (17)
Non-Controlled Amounts – Lines 15 &
20
Fund 39, Referendum Debt Levy (15A)
Fund 80, Community Service Levy (15B
)
*
Fund 10, Src 212, Property Tax Chargebacks (15C
)* Note: Fund 80 has new restrictions for 2013-14 as part of 2013 Act 20.Step 4: Determine Levy and Computer Aid Amounts35Slide36
State Aids: Line 12 = Line 12A + Line 12B
State General Aid (Line 12A)Currently shows the July 1 Aid Estimate AmountWill change with October 15 Certified Aid AmountReviewed in Equalization Aid session previous hour.Aid to High Poverty Districts (Line 12B)
Step 4: Calculating Levies & Aids
Line 12
36Slide37
Step 4: Calculating Levies & Aids
Line 1337Slide38
Step 4: Calculating Levies & Aids
Lines 14 & 1538
State General Aids (line 12)
*
Computer Aid is based on the total levy, but, at this point in the computation, we don’t have total levy yet. Calls for a strategy on how to get the limited portion right…
Revenue Limit - Line 11
Line 13 - Allowable Limited Levy
Includes:
F-10 Levy
F-38 Levy
F-41 Levy
Computer Aid
*
Controlled Levies
Fund 10 Levy
Fund 38 Levy
Fund 41 Levy
Non-Controlled Levies
(39+80 +10 chargebacks)
Total Tax Levy- Line 18Slide39
Step 4: Calculating Levies & Aids
Line 14STRATEGY:First, enter the amounts you intend to levy for Funds 38 (line 14B) and 41 (line 14C).Then, enter into line 14A the difference between line 13 and the sum of lines 14B & C.
By doing this, you have levied to your maximum. Note that districts may choose to levy less than the maximum, in which case, a lower amount would be entered in Line 14A.
14A <= 13 – (14B + 14C)
Remember:
Line 14 cannot exceed Line 13!
If it does, you must reduce something in Line 14 (or, remain in a penalty situation).
39Slide40
Step 4: Calculating Levies & Aids
Line 14
40Slide41
Step 4: Calculating Levies & Aids
Line 14
41Slide42
Step 4: Calculating Levies & Aids
Line 15Enter non-controlled levies (levies outside the revenue limit) on line 15:Referendum Approved Debt Service (Fund 39)Community Service (Fund 80)Prior Year Chargeback (Fund 10, Source 212)
Other (Milwaukee & Kenosha
only
)
Line 15 = 15A + 15B + 15C + 15D
42Slide43
PREVIOUS FISCAL YEAR
CURRENT FISCAL YEAR
NEXT FISCAL YEAR
JAN/FEB
MAR
JUN
JUL
AUG
OCT
NOV
JAN/FEB
MAR
JUN
JUL
AUG
OCT
NOV
Receive Tax
Debt Payment Due
Fiscal Year End
Fiscal Year Begin
Receive Part of
previous
f.y
. taxes
Debt Payment Due
Set Levy
Receive Tax
Debt Payment Due
Fiscal Year End
Fiscal Year Begin
Receive Part of
previous
f.y
. taxes
Debt Payment Due
Set Levy
PY Exp
CY Exp
CY Exp
NY Exp
PY Rev.
PY Rev.
CY Rev
CY Rev
CALENDAR YEAR
CALENDAR YEAR
Strategy for Long-Term Debt (Fund 38 and Fund 39):
The Fall tax levy should be enough to cover your debt payments due in the Spring of
and
the Fall of the
calendar
year
.
Your expenditure budget should reflect the amount of your debt payments you will pay during the
fiscal
year
Step 4: Calculating Levies & Aids
Lines 14 & 15
43Slide44
44
PRINCIPAL
INTEREST
13-13
Expenditures Budget Report =
$755,887.50
(report fiscal year activity)
Fall
39
Levy = $748,497.50 (levy on calendar year)
CERTIFIED LEVY
12-13
BUDGET
Debt Tables in SAFR
Step 4: Calculating Levies & Aids
Lines 14 & 15
2013
2013
2014
2014Slide45
Step 4: Calculating Levies & Aids
Line 16Line 16 = Line 14 + line 1545Slide46
Step 4: Calculating Levies & Aids
Line 17
Computer Aid is based on property values and total levy.
You must enter property values in Line
17 A and B
on
left
side for the calculation to work properly.
Be sure to update these amounts once the Department of Revenue releases the
2013 certified Property Values, expected on October 1.46Slide47
Step 4: Calculating Levies & Aids
Line 17
Once you have entered the property values and all of the levy amounts on Lines 14 & 15, the spreadsheet automatically calculates Computer Aid on
Line 17
.
47Slide48
Step 4: Calculating Levies & Aids
Line 18
Once all your numbers are entered, the spreadsheet will auto-calculate Line 18.
THIS (Line 18)
will be the amount of your Fund 10 (Source 211) Property Tax Levy for 2011-2012.
Line 18 = Line 14A – Line 17
48Slide49
Step 4: Calculating Levies & Aids
Line 19Line 19 is your total school tax levy – the amount certified to DPI and the DOR on the PI-401 and to municipalities on the PI-1508.Line 19 = Line 14B + 14C + 15 + 18The worksheet also calculates your tax rate (Line 19 / Property Value “B” (TIF-Out Equalized property Valuation).The “Mil Rate” = tax rate X 1,000.Line 20 is the total levy for debt service, Fund 38 +
Non Fund 38.
Line 20 = Line 14B + Line 15A
49Slide50
Second “Fly-Over
” ReviewLines 11 – 2050Slide51
We have walked through the revenue limit worksheet. However, we have not accounted for
actual:2013 enrollment data (Summer or September);October property values (scheduled to be released by DOR on 10/1); orOctober 15 Certified State Aid.Please Note:
October Revenue Limit Calculations
51Slide52
We encourage you to register for one of the “Getting It Right” workshops hosted by WASDA and presented by DPI. Information is available at
http://wasda.org/Friday, October 18 in Stevens PointMonday, October 21 in MadisonThe DPI SFS Team will go through the revenue limit worksheet line by line with updated data.At the end of the day, you will have a completed worksheet with your 2013-14 revenue cap and levy information.
October Revenue Limit Calculations
52Slide53
1.) If our a district added 9 FTE to their
2013 Fall count, how would Lines 6 & 7 change?2.) How does a district enter an underlevy on the worksheet?The revenue limit uses a 3-year average, so the 9 extra kids would compute to an increase of 3 FTE on Line 6. The dollar increase to Line 7 would be 3 x the 13-14 Maximum Revenue/Memb on Line 5.The district revenue limit status is computed by subtracting Line 14 from Line 13. If the district wishes to underlevy, enter a number in Line 14 that is less than Line 13 by the amount of underlevy.
Revenue Limits
Using What You Know
53Slide54
3.) Your district has
only recurring exemptions and wants to underlevy. How much of your underlevy will be carried over into the next year?4.) Your district has only non-recurring exemptions and wants to underlevy. How much of your underlevy will be carried over into the next year?100%Only the amount of underlevy that exceeds the amount of your non-recurring exemptions will be carried over.
Revenue Limits
Using What You Know
54Slide55
5.) Your district has
BOTH recurring and non-recurring exemptions and wants to underlevy. How much of your underlevy will be carried over into the next year? This can be very tricky and depends on the amounts of each exemption, plus the amount of the underlevy. The Revenue Limit Worksheet includes an audit check to the right of the calculations that show the allowable carry-over under existing law. Call the SFS Team at DPI to discuss further to understand your circumstances.
Revenue Limits
Using What You Know
55Slide56
6.) Is there any relationship between Line 11 and Line 12 – i.e. does it have to be 2/3rds (66%)?
There is and never has been an intentional relationship between these 2 lines. What a district gets for aid on Line 12 is dependent on the state appropriation for General Aid and how the district fares in the aid formula. This does NOT have anything to do with 2/3rds (66%.)Revenue LimitsUsing What You Know
56Slide57
dpi.wi.gov/
sfsResources on the DPI WebsiteLongitudinal Data (green scanbar) > Revenue Limits > Section on Multi-Year Revenue Limit Data
SFS Homepage
SFS Team is in the process of updating
57Slide58
Visit the DPI SFS web site:
dpi.wi.gov/sfsOr call (all area code 608)Robert Soldner, Director, 266-6968 Erin Fath, Assistant Dir., 267-9209Brad Adams, Consultant, 267-3752
Bruce Anderson, Consultant, 267-9707
Gene Fornecker, Auditor, 267-7882
Bryan Kahl, Auditor, 266-3464
Michele
Tessner
, Auditor, 267-9218
Questions?
58Slide59
REVENUE LIMIT CARRYOVER DISCUSSION….
(optional)
59Slide60
Revenue Limits
Recurring ExemptionsPrior-Year CarryoverTransfer of ServiceTransfer of TerritoryFederal Impact Aid Loss
Recurring Referenda to Exceed
(if year 1 of authority)
Non-Recurring Exemptions
Non-Recurring Referenda
to Exceed
Declining Enrollment
Line 7 Hold Harmless
Energy ExemptionOther60Slide61
Base
$10,000,000
$10,000,000
Inflationary Increase
Transfer of Service
Recurring Referendum
Prior Year Aid
plus
Levies
(no backouts)#1 - Recurring Exemptions, Levied to Max
2012-13
2013-14
Aid
+
Levy
Base
This district used all of its authority and has no carryover authority into
13-14,
Line 8A.
61Slide62
Base
$10,000,000
$9,800,000
Inflationary Increase
Transfer of Service
Recurring Referendum
Prior Year Aid
plus
Levies
(no backouts)
#2 - Recurring Exemptions, Underlevy
2012-13
Aid
+
Levy
Base
This district will have $200,000 of carryover authority in
2013-14
in Line 8A.
Underlevied by $200,000
2013-14
62Slide63
Base
Inflationary Increase
Decl Enroll - $150,000
Prior Year Aid
plus
Levies
Minus $150,000
(base backout)
#3 - Non-Recurring Exemptions, Levied to Max
2012-13
Aid
+
Levy
Base
This district will have no carryover authority in
2013-14
in Line 8A.
2013-14
63Slide64
Base
Inflationary Increase
Low Revenue Increase
Line 7 - $46,000
Prior Year Aid
plus
Levies
Minus $36,000
(base backout of
amount used)#4 - Line 7 Hold Harmless Non-Recurring, Recurring, Under-levy
2012-13
Aid
+
Levy
Base
This district will have no carryover authority in
2013-14
in Line 8A.
Underlevied by $10,000
Transfer of Service
2013-14
64Slide65
Base
Inflationary Increase
Transfer of Service
Line 7 - $46,000
Prior Year Aid
plus
Levies
(no backout)
#5 - Line 7 Hold Harmless
Non-Recurring, Recurring, Under-levy
2012-13
Aid
+
Levy
Base
This district will have $10,000 in carryover authority in
2013-14
in Line 8A.
Underlevied by $56,000
2013-14
65Slide66
Base
Inflationary Increase
Line 7 - $40,722
Rec Ref - $252,707
Prior Year Aid
+
Levies
2012-13
Aid
+
Levy
Base
Plus, this district will have $43,955 of carryover authority in
2013-14
in Line 8A.
Decl Enroll - $168,030
Underlevied by $252,707
$43,955
2013-14
66
#5 - Line 7 Hold Harmless
Non-Recurring, Recurring, Under-levy