INDEPENDENT SCHOOL

DISTRICT 829

Waseca Public Schools

Final 2017-2018 Budget

March 15, 2018

“In a tradition of excellence, Waseca Public Schools empowers each learner to

thrive in an ever-changing world.”

Independent School District 829

Waseca Public Schools

Final 2017-2018 Budget

March 15, 2018

School Board Members

Member Position Term Expires

Randy Zimmerman* Chairman 1/5/2021

Julie Anderson Vice Chairman 1/5/2021

Koni Hudak* Treasurer 1/5/2021

Katherine Youngberg Clerk 1/1/2019

Jeffrey Hoelmer Director 1/1/2019

Steven Luther Director 1/1/2019

Todd Zimmerman* Director 1/1/2019

Nick Buchele Student Representative (Senior)

Chloe Armendariz Student Representative (Junior)

*Member of Finance Committee

Administration

Thomas Lee Superintendent

Elizabeth Beery Director of Business Services

Ben O’Brien Hartley Elementary School Principal

John Huttemier Intermediate School Principal

Jeanne Swanson Junior and Senior High School Principal

Jason Miller Junior and Senior High School Assistant Principal

Heather Harms Special Education Director

Deanna Gronseth Special Education Assistant Director

Paul Demorett Community Education Director

JoAnn Erickson Area Learning Center Coordinator

Joseph Hedervare Activities Coordinator

John Stenzel Buildings and Grounds Supervisor

Jason Forshee Food Service Director

Brian Hering Director of Technology

District Office

Sheryl Gutfleisch Student Data Specialist/Central Registration

Roxanne Herold Accounts Payable/Purchasing Specialist

Sharon Krassin Student Information System Specialist

Denise Seberson Human Resource Specialist

Ashley Sikel Superintendent Administrative Assistant

Lisa Stenzel Payroll Specialist

501 East Elm Avenue

Waseca, MN 56093

(507) 835-2500

www.waseca.k12.mn.us

Independent School District 829

Waseca Public Schools

Campus Information

Hartley Elementary School Waseca Intermediate School

605 7th St NE 400 19th Ave NW

Waseca, MN 56093 Waseca, MN 56093

Phone: (507) 835-2248 Phone: (507) 835-3000

Fax: (507) 835-1005 Fax: (507) 837-5530

Waseca Junior High School Waseca Senior High School

501 E Elm Ave 1717 2nd St NW

Waseca, MN 56093 Waseca, MN 56093

Phone: (507) 835-1048 Phone: (507) 835-1048

Fax: (507) 835-1161

Waseca Area Learning Center Waseca County Off Campus

501 E Elm Ave 501 E Elm Ave

Waseca, MN 56093 Waseca, MN 56093

Phone: (507) 835-5588 Phone: (507) 835-0918

Fax: (507) 835-1161 Fax: (507) 835-0913

Special Education Community Education

501 E Elm Ave 501 E Elm Ave

Waseca, MN 56093 Waseca, MN 56093

Phone: (507) 835-5046 Phone: (507) 835-5626

Food Service Activities/Athletics

400 19th Ave NW 1717 2nd St NW

Waseca, MN 56093 Waseca, MN 56093

Phone: (507) 835-3360 Phone: (507) 835-5470

Introduction

INDEPENDENT SCHOOL DISTRICT 829

Community Profile

Source: City of Waseca

“Waseca is known for our comfortable and friendly atmosphere. Just one-hour south of all the big-city

conveniences of the Twin Cities metropolitan area, located 13 miles west of Owatonna and 25 miles east of

Mankato at the crossroads of State Highway 13 and US 14. Waseca offers big city conveniences with the

advantages of small town living. Waseca is a vibrant community of 9,737 people comfortably nestled between

beautiful Clear and Loon Lakes.

Waseca serves as the county seat of Waseca County. Waseca was incorporated as a village in 1868. “Waseca”

is a Dakota Indian word meaning “rich in provisions.” Waseca’s main street is lined with storefronts that years

ago provided patrons with hitching posts for horses. Historic homes peek from behind stately, century-old trees.

Quiet streets wrap around city parks and ball fields while the 1897 Courthouse still stands proudly as a reminder

of our city’s early beginnings.

Waseca Public Schools has a K-12 population of approximately 1,900 students. Teachers, parents, and the

community work hand in hand to offer the perfect combination of a world class education, in award winning

schools, in a friendly, small town environment.”

Waseca Public Schools’ Strategic Plan

Waseca Public Schools’ mission states, “In a tradition of excellence, Waseca Public Schools empowers each

learner to thrive in an ever-changing world.” This mission is guided by five core values:

Relationships Promoting respect, integrity and honesty among students, staff, and community

Achievement Challenging ourselves and each learner to excel in all we do

Diversity Valuing individuals for their talents, backgrounds, and viewpoints

Collaboration Engaging in quality partnerships with professionals, families, and community

Accountability Maintaining public trust by transparently measuring and reporting on financial and academic matters

In collaboration with our community, we will provide content-rich, rigorous, innovative, personalized learning

to prepare all learners for college, career, and life. We will focus our allocation of resources on:

Assuring a guaranteed and viable curriculum and programs fostered by staff training.

Assuring facilities and transportation that are safe and meet program needs.

Assuring quality technology systems for students and staff of today and of the future.

Assuring effective communication to our families and community.

Securing adequate funding to accomplish our vision.

District Profile

Waseca Public Schools serves leaners from pre-K through adulthood. The District has a K-12 population of

approximately 1,900 students, and employs approximately 320 individuals throughout our four sites. Waseca

Public Schools’ fiscal year runs from July 1 through June 30. Each year, the School Board will approve two

budgets. The preliminary budget is approved in June for the July 1 start date, with the final budget approval in

the spring. Minnesota school finance is based upon fund accounting. There are eight major funds included in

the $53,500,000 School District budget. These include the General, Food Service, Community Education,

Building Construction, Debt Service, Trust, Agency, and Internal Service Funds.

General Fund

The General Fund includes the primary operations of the District in providing education services to students

from Kindergarten through Grade 12. This year the fund makes up 44.9% of the District’s total expenditure

budget. In years where the District is not involved in a construction project, it makes up approximately 81% of

the District’s total expenditure budget. The General Fund includes educational activities, district instructional

and student support programs, district administration, operations, transportation, capital expenditures, and

extracurricular activities under School Board control. Approximately 20% of the General Fund expenditure

budget is associated with restricted or assigned funds. The revenue that is generated for these restricted and

assigned accounts may only be used for specific purposes, which are outlined in statute.

Student enrollment is a critical factor in determining revenue, with approximately 68% of General Fund revenue

being determined by enrollment. The District is projecting a slight decline in enrollment for the 2017-2018

fiscal year.

Food Service Fund

The Food Service Fund accounts for the activities related to providing nutrition services to the K-12 academic

program. The fund’s goal is to operate on the principal of revenues exceeding expenditures on day-to-day

operations so that the excess can be used to systematically replace and upgrade kitchen equipment around the

District. By operating on this premise, the Student Nutrition Services program should be self-contained and

should not utilize resources away from direct K-12 instruction.

Community Education Fund

The Community Education (Service) Fund accounts for the activities related to providing education and

recreation programs for Pre-Kindergarten through Post-Grade 12 students. The fund operates on the goal of

self-sustaining on a yearly basis so that it does not rely upon resources from K-12 instruction programs, other

than for the use of school facilities. This fund contains four major restricted accounts. These accounts provide

programming for Early Childhood Family Education, Adult Basic Education, School Readiness, and General

Community Education services. The mission of Community Education is to provide leadership in the creation

of lifelong learning, recreation and citizen involvement opportunities for all District 829 residents.

Building Construction Fund The Building Construction Fund is used to record all operations of a district’s building construction program

that are funded by the sale of bonds, capital loans, or the Alternative Bonding Program. The community passed

a $30 million bond in November, 2015, in order to finance capital facility projects across the District. The

bonds were sold and proceeds were issues in December, 2015. Ground breaking occurred in the spring of 2017.

The District sold $2.925 million in Long Term Facilities Maintenance bonds in the spring of 2017 to finance the

asbestos abatement and indoor air quality projects at the Junior and Senior High School. This current school

year, the District sold $2 million in Long Term Facilities Maintenance bonds in February, 2018 to finance pool

renovations and the replacement of tennis courts. This fund will record the activity of these projects until their

expected completion date, which is the spring of 2019.

Debt Service Fund

The Debt Service Fund is used to record revenues and expenditures for a school district’s outstanding bonded

indebtedness, whether for building construction or operating capital, and/or for initial or refunding bonds.

Trust Fund

This fund exists to handle monies that are awarded to students to be used for scholarships for continued

education as well as scholarships to help offset the expenditures of extracurricular activities.

Agency Fund

The Agency Fund accounts for the revenues and expenditures for the Waseca County Collaborative for

Families. The district will handle these monies as the fiscal host until the funds have been depleted. The

Waseca County Collaborative for Families’ goal is, “Working together to improve the well-being of the

children and families of Waseca County.” The intent of this collaborative is to serve expectant parents, families

and youth ages 0 through Grade 12 that are enrolled in educational programs within the boundaries of Waseca

County. The availability of these services are designed to enhance and strengthen family functioning.

Internal Service Fund

The Internal Service Fund accounts for the revenues and expenditures of the self-insured dental plan. The plan

is administered by the District with consultation from the Insurance and Safety Committee. The District utilizes

a third party company called Simple to process the dental reimbursements.

GENERAL FUND BUDGET ASSUMPTIONS

The District projects student enrollment for the year based on the following factors: Average Daily Membership

(ADM) statistics over the past eight years; birth to four-year old counts; preliminary enrollment; Hazel

Reinhardt’s October, 2013 demographic study; as well as grade progression ratios. In evaluating the enrollment

numbers and monitoring the trends during 2016-2017, as well as taking into account the community’s birth to

four-year old population, the District based the preliminary 2017-2018 projected revenue on 1,866 ADM’s. The

final 2016-2017 ADM’s were reported at 1,894. Using the Final 2016-2017 ADM count, as well as looking at

the fall of 2017 trends, the district is estimating the final 2017-2018 ADM count at approximately 1,881, an

increase from the preliminary projection.

The District uses trend data from audited enrollment numbers as well as birth to four-year old information to

develop a five-year enrollment projection. The district also engaged in a demographic study in the fall of 2013.

This information is reviewed frequently and is used to develop the District’s five-year budget projections.

The projected Unassigned ending fund balance is 31.89% of the Unrestricted General Fund balance. Following

are notable adjustments from 2016-2017 and forecasted for 2017-2018:

During the February16, 2017 school board meeting, the board approved a motion to Assign $865,000 for

the Junior and Senior High School facility project. Once the facility project is complete, any remaining

funds will be transferred back to the Unassigned Fund Balance.

Beginning with the 2016-2017 fiscal year, districts are now required to Restrict Medical Assistance

revenue and expenditures. If districts have been tracking their previous years’ balances, they may move

these funds to the restricted balance. Waseca Public Schools’ carryover balance from prior years totaled

$652,178.

During the March 15, 2018 school board meeting, the District will be asking the school board to assign

$191,108 of one time funds for one-time facility projects and/or updates. These are dollars that were

refunded to the District for unused health insurance premium dollars when the District was a member of

the South Central Service Cooperative insurance pool.

The District was awarded three new grants during the 2016-2017 fiscal year, which will carry over into

the 2017-2018 fiscal year. These grants include:

Migrant Education Program $54,887 (FY18 projected federal expenditures)

o National program that provides educational and support services to eligible migrant

children between the ages of 3-21

Support our Students $9,918

o ALC School Social Worker support

Alternative Delivery of Specialized Instructional Services (ADSIS) $211,049

o Provide instruction to assist students who need additional academic or behavioral

support to succeed in the general education environment

The 2017-2018 budget reflects a 2.0% addition to the general education aid formula. The expenditure budget

includes adjustments based upon estimated contract settlements. The following positions, curriculum,

programs, software, and equipment/facility upgrades are an adjustment to the 2017-2018 budget:

Positions

Addition of a Dean of Students 1.0 FTE

Addition of EL Licensed Staff 0.4 FTE

Addition of ADSIS Staff 5.5 FTE

Addition of Special Education Assistant Director (effective January 1, 2018) 1.0 FTE

Addition of Special Education Office Assistant 0.5 FTE

Addition of School Nurse 0.25 FTE

Addition of Technology Integration Coaches

Curriculum, Programs, and Software

Investment in 1:1 Technology Initiative – 600 Chromebooks

Equipment/Facility Investments

Facility projects throughout the district utilizing the building bond

Entered into a lease with the City of Waseca for Tink Larson Field

Entered into a lease with the Arena Board for the Community Arena

VOTER APPROVED OPERATING REFERENDUM

Waseca Public Schools operated during the 2010-2011 and 2011-2012 school years without a voter approved

operating referendum. The District had implemented over $5 million worth of budget reductions during a five-

year period. In the fall of 2011, the community approved an operating referendum worth $700 per pupil unit for

six years, beginning with the 2012-2013 school year. In collaboration with the community’s support, the

District has been focusing these resources on the following areas: Technology, Fiscal Solvency, and Programs

and Staff. The District is grateful for the community’s investment in partnering with the District to, “empower

each learner to thrive in an ever-changing world.”

Expenditures identified for the 2017-2018 budget include:

Technology

1:1 Initiatives

Infrastructure

Continued Investment in Additional Technology Staff Members

Technology Integration Specialist

Webmaster/Communication Specialist

District Wide Maintenance Technician

Maintaining Additional Building Technician

Summer Assistance

Fiscal Solvency

Working towards fulfilling and maintaining our Auditor’s recommendation to have a reserve of

approximately 20%. This will help the District prepare to withstand future cuts in Federal or

State dollars.

School Board Policy 714 states, “The district’s goal shall be to maintain an Unrestricted general

fund balance, including Committed, Assigned, and Unassigned categories, of not less than 15%

and not more than 35% of the General Fund operating budget.”

Programs and Staff

Creating enhanced programmatic options for students at the Junior High level, investing in

curriculum and staff, and working on restoring programs that have been reduced over the past

years. Investments include:

Dean of Students

Junior High Band Director

Elementary Art (2 positions)

Vocal Music

Media Director

Elementary Instruction/Class Size Reduction (2 positions)

Industrial Technology

Elementary Counselor (total now 4 across the district)

Junior High Exploratory Courses

Curriculum investment cycles implemented across the district

FACTORS BEARING ON THE DISTRICT’S FUTURE

With the exception of a voter approved operating referendum, the District is dependent on the state of

Minnesota for its revenue authority. The state legislature sets the amount of revenue from aids and levies that

Minnesota school districts will receive. The District continues to monitor legislative activity and proactively

engages the legislature regarding these concerns.

The District continues to plan accordingly; using the strategic plan, analytic programs, and multi-year financial

projections. These components drive the budgeting process, programmatic considerations, and academic and

fiscal goals and visions for Waseca Public Schools. Because of our long range planning and financial

objectives, the District continues to move in a positive direction. During the 2015-2016 year, Moody’s

upgraded the District’s credit rating to an Aa3. During the past two years, the District has sold two additional

bonds and has maintained the Aa3 rating. All parties involved understand the importance of fiscal stability and

how this correlates with offering the best academic programming possible.

The District will strive to maintain its long-standing commitment to academic excellence and educational

opportunity for students within a framework of financial fiduciary responsibility.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This information is designed to provide our citizens, taxpayers, customers, and investors and creditors with a

general overview of the District’s finances in an effort to demonstrate the District’s accountability for the

money it receives. If you have questions or need additional information, contact:

Elizabeth Beery, Director of Business Services

(507) 837-5463 or beee@waseca.k12.mn.us

District Business Office

501 East Elm Avenue

Waseca, Minnesota 56093

HELPFUL RESOURCES

The District posts audited financial statements, budget publications, and truth in taxation hearing presentations

on the school website. This information can be found at the following address: http://www.edline.net/pages/Waseca_Public_Schools_ISD__829/Departments/Business_Office/Business_Finance

Other available resources include:

Minnesota School Finance

A Guide for Legislators

http://www.house.leg.state.mn.us/hrd/pubs/mnschfin.pdf

Financing Education in Minnesota 2017-2018

A Publication of the Minnesota House of Representatives Fiscal Analysis Department

https://www.house.leg.state.mn.us/Fiscal/Download/2020

Legislative and Congressional Members Representing Waseca Public Schools:

John Petersburg – 24A – MN House

John Jasinski – 24 – MN Senate

Tim Walz – 1 – U.S. House

Amy Klobuchar – U.S. Senate

Tina Smith – U.S. Senate

2017 LEGISLATIVE UPDATE

SOURCE EHLERS INC.

The Legislature and the Governor wrapped up another session, with the Governor signing all the major budget

bills as well as the omnibus tax and elections bills. There are several important provisions included in all three

bills that will affect school district budgets and facilities planning. Because this is a "budget" year, the major

omnibus bills needed to be signed into law to keep the government funded. As a result, there are many

provisions that were enacted, but we intend to only highlight the major changes, and primarily those in the

facilities area. There were many smaller changes that might affect some districts but not others. We invite you

to contact us if you have specific questions about provisions not listed here.

SCHOOL BUILDING BOND AGRICULTURAL CREDIT - Included in the omnibus tax bill

This provision, effective for property taxes payable in 2018, will have a significant impact in school districts

with large concentrations of agricultural land by providing agricultural property owners a credit of 40% of the

taxes attributable to school district debt service for all agricultural property, excluding the house, garage, and

one acre. The credit will be directly deducted from property taxes owed and will apply to debt service levies for

all existing and future bond payments (except OPEB). The amount of the credit will be paid directly to the

school district by the state.

An important note about the School Building Bond Agricultural Credit is the interaction with existing revenue

programs and financing tools. Because debt service levies qualify for the credit, while funds levied on a pay as

you go basis do not, a decision to issue Long Term Facilities Maintenance (LTFM) bonds will reduce total taxes

on agricultural property compared with making an annual levy. The same holds true for capital facilities bonds,

which are financed with operating capital revenue.

Please contact us if you would like to know the specific impact of the credit (in total dollars or tax impact per

acre) on your district for your current outstanding debt.

SPECIAL ELECTION DATES – Included in the omnibus elections bill

Effective for elections after January 1, 2018, the current “windows” of allowable special election dates for bond

referendums and capital project levies have been limited to five specific dates during the calendar year: the

second Tuesday in February, April, May, and August, or the first Tuesday after the first Monday in November.

Also, school boards must designate combined polling places by December 31 of the prior year, effective for one

calendar year.

REVIEW AND COMMENT

There were two changes to the review and comment process that take effect on July 1, 2017. First, the school

board will be required to hold a public meeting to discuss the commissioner’s review and comment before the

bond election. Second, the commissioner’s review and comment will now include comments from district

residents. If your district will be voting after July 1, plan to review the commissioner’s review and comment

before your election at a regular or special school board meeting.

LONG TERM FACILITIES MAINTENANCE

School districts must now adopt or develop a plan to test for the presence of lead in the water in school

buildings. This testing and subsequent remediation, if necessary, can be included in the ten-year facilities plan

and is an allowable use of facilities maintenance revenue.

2017 LEGISLATIVE UPDATE CONTINUED

SOURCE EHLERS INC.

BASIC FORMULA ALLOWANCE

The formula allowance for fiscal year 2018 is $6,188 and for fiscal year 2019 and later is $6,312. This

represents a 2% increase in each year of the biennium.

PAYMENT METERING

For school district non-operating aids and credits (including debt service equalization aid, LTFM aid in the debt

fund, and the new school building bond agricultural credit), payments will be made in six monthly installments

at the beginning of the fiscal year instead of 12 over the course of the year, to better align with semi-annual

payments to bondholders and improve cash flow in school district debt service funds.

UPDATES TO MAXIMUM EFFORT CAPITAL LOAN CHANGES OF 2016

Last year there were many changes related to the “Maximum Effort Capital Loan” program that affected the

small number of districts in that program. Some of the changes in last year’s legislation were included in the

Omnibus Tax Bill, which was vetoed by the Governor. The Legislature included those changes and a few others

in the education and tax omnibus bills this year.

STATEWIDE PROPERTY TAX- Included in the omnibus tax bill

Two changes will reduce property taxes for commercial-industrial and seasonal-recreational (cabins) property,

which are subject to a statewide property tax paid directly to the state. The inflation factor on the overall amount

levied was removed, and the first $100,000 of value of a commercial-industrial property is now exempted from

this tax. There is no impact to school revenue or levies because of this change, but business will see some

overall property tax relief.

2017-2018

Final Budget

GENERAL FUND EXPENDITURE BUDGET DEFINITIONS

Salaries/Benefits

This category includes a majority of the personnel within Waseca Public Schools. This reflects our teaching

staff, paraprofessionals, maintenance staff, administration, clerical, and technology employees. The only

employee groups not represented in this diagram include Community Education and Food Service.

Purchased Services Examples of Purchased Services include:

Consulting services

o Maintenance (snow removal, equipment repair, etc.), legal counsel, yearly auditor fees

Tuition

o Regular education facility placement, College In the Schools program at the High School

Transportation/Bus contracts

Travel/staff development expenditures

Utilities

o Electricity and water

Purchased services from other districts or entities. An example would include sharing Special Education

staff members.

Supplies

Examples of supplies include:

General supplies (pens, pencils, paper)

Books

Educational supplies (software, learning tools)

Utilities

o Gas

Capital Expenses

Examples include:

Equipment or furniture purchases

Large maintenance projects

o Roof replacements

o Boiler replacements/up-keep

o Parking lot overlays

Many of these funds are restricted and may only be used for certain purposes according to state statue.

This is largely for the maintenance of buildings, facilities, and infrastructure.

Debt Redemption

Interest due on cash borrowed. The State distributes approximately 90% of the aid generated by the District’s

student population in the current school year. The remaining 10% is distributed the following school year. Due

to this shift, in the past the District has borrowed funds to meet its cash flow needs. The District will not be

borrowing for the 2017-2018 fiscal year.

Other

Examples include dues and membership fees

Professional organizations such as the Minnesota School Board Association, Minnesota State High

School League, and organizations related to teaching licenses or administrative fields

Potential Affordable Care Act Penalty

Source: Uniform Financial Accounting and Reporting Standards (UFARS) Manual

GENERAL FUND EXPENDITURE BUDGET BY PROGRAM DEFINITIONS

Administration

These programs include all costs for general administration, instructional administration, and school site

administration for the school district. Administrative services are defined as those provided by head

administrators who are in charge of instructional or instruction-related units. This includes the school board,

superintendent, and principals.

District Support Services These services consist of activities included in the fiscal operation and business management aspects of the

school district including finance, budgeting, accounting and other related areas. This also includes activities

concerned with supporting the school district’s information technology systems.

Elementary and Secondary Regular Instruction

Regular Instruction includes all activities dealing directly with the teaching of pupils, the interaction between

teachers and pupils in the classroom and co-curricular activities at the kindergarten, elementary and secondary

levels.

Career and Technical Education Instruction

These included courses and activities which develop knowledge, skills, attitudes and behavioral characteristics

for students seeking career exploration and employability. These pertain only to courses which are approved by

the Department and operated in accordance with Minnesota Rules Chapter 3505.

Special Education Instruction

These programs include activities that provide learning experiences for pupils of any age who, because of

certain atypical characteristics or conditions, have been identified as requiring, or who would benefit by,

educational programs differentiated from those provided pupils in regular or vocational instruction.

Instructional Support Services

These are programs that assist the instructional staff with the content and process of providing learning

experiences for pupils in the kindergarten through twelfth grade. Examples include building technicians and

media specialists.

Pupil Support Services

This includes all services provided to pupils which do not qualify to be classified as instructional services.

Examples include transportation services, counseling and guidance offices, and the school nurse.

Sites, Buildings and Equipment

This includes activities related to the acquisition, operation, maintenance, repair, and remodeling of all physical

plant, facilities, and grounds of the school district.

Fiscal and Other Fixed Costs Programs

Examples include insurance expenditures relating to property and liability.

Source: Uniform Financial Accounting and Reporting Standards (UFARS) Manual

Enrollment

Information

Employment

History

Referendum

Information