2021-22 Budget WorkshopNon-Operating Funds

April 26, 2021

Every student will have a personalized learning plan that supports them in being

college/career ready and having the interpersonal skills important to life success.

DESTINATION

Operational vs Non-Operational Budgets Expenditures

Operational Budget includes the daily expenditures associated with running the school district, primarily salaries & benefits as well as transportation, utilities and supplies & services.

Non-Operational are directed primary to maintaining, repairing, and rebuilding district facilities. Non-operational dollars cannot be used for daily operational expenditures, but for a few specifically defined exceptions. Capital Budget include purchases for educational equipment, ongoing facilities

upkeep and repairs to buildings according to an established replacement cycle. These funds are typically not large enough for major renovations or reconstruction. Capital outlay dollars cannot be used for operational needs, except for the salaries of maintenance and custodians who maintain the facilities.

Bond Funds dedicated to new construction and remodel of district facilities. Bond funds cannot be used for operational needs.

see SMSD Budget and Finance FAQ

SMSD BUDGET 2020-2021OPERATINGUnrestricted$245,854,40061% of Total

FEDERALRestricted

$15,108,5344% of Total

CAPITAL OUTLAYRestricted

$45,998,63011% of Total

BOND (DEBT)Restricted

$33,229,4508% of Total

FLOW-THROUGHRestricted

$39,839,82110% of Total

SELF-SUPPORTEDRestricted

$22,766,6226% of Total

State & Local Revenues

(State = 73%)

Federal Revenues

(Federal = 100%)

Local Revenues

(State = 0%)

Local & BondProceeds $264,220,000

(State = 0%)

State & Local Revenues

(State = 78%)

Fees, Gifts & Grants Revenues

(State = 1%)

Unrestricted for these purposes:• Salary & benefits

83%• Student

transportation 6%

• Supplies & services 5%

• Utilities 4%• Other 2%

Restricted by federal statute for these purposes:• Title VIB special

education• Title I reading &

math support in our high poverty schools

• Title IIA to develop high qualified teachers and principals

• Title III & IV

Restricted by state statute for these purposes:• Bond Debt & Apple

Leases• Construction• Renovation & repair• Maintenance

salaries• Technology and

software• Furnishings and

equipment• Uniform purchases

Requires voter approval and is restricted for these purposes:• Major construction

and renovation of facilities

• Equip and furnish facilities

• Cannot be used for operations

• Bond debt is paid from the Bond & Interest Fund

Restricted by state statute for these purposes:• KPERS flow-

through contribution funded by the state

• Cost of living weighting funded by local taxes

Restricted by state statute for the revenue specific purposes:• Food service

and summer school

• Textbook rental & student materials

• Gift, Donations & non-federal grants

• Special liability

0.0

1.0

2.0

3.0

4.0

5.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bill

ions

Assessed Valuation Growth$4.49 Billion3.6% Increase

Kansas State Statue Authorized Use of Funds

Article 53 – Capital Outlay State Aid, 72-53,116. Capital outlay fund; use of moneys; investments authorized. (a) Any moneys in the capital outlay fund of any school district and any moneys received from issuance of bonds under K.S.A. 72-53,117 or 72-53,122, and amendments thereto, may be used for the purpose of the acquisition, construction, reconstruction, repair, remodeling, additions to, furnishing, maintaining and equipping of school district property and equipment necessary for school district purposes, including: (1) Computer software; (2) performance uniforms; (3) housing and boarding pupils enrolled in an area vocational school operated under the board of education; (4) architectural expenses; (5) building sites; (6) undertaking and maintenance of asbestos control projects; (7) school buses; and (8) other fixed assets.

http://www.kslegislature.org/li/b2019_20/statute/072_000_0000_chapter/072_053_0000_article/072_053_0116_section/072_053_0116_k/

Beginning Fund Balance $15,850,663

Revenues:

Property/MV Taxes $36,449,937

Miscellaneous/Interest 74,853

Apple Repair/Replacement Fees 125,000

Apple Trade-In 0

Total Revenues $36,649,790

Total Budget Available $52,500,453

Capital Outlay:Revenue

Total Budget Available $52,500,453

Expenditures:Schools/Departments $ 1,943,885Technology 4,632,119Operations and Maintenance 12,945,000Salaries & Benefits (inc. $2.3M custodial) 6,862,002Bond & Apple Lease Payments 17,893,736Unallocated Projects 3,223,710

Total Expenditures $47,500,453Ending Fund Balance $5,000,000

Capital Outlay:Expenditures

Board Policy DBB – Minimum Operating Fund Balance and Use of Capital Outlay Fund for Salaries

Good business practice recommends that the district maintain a minimum unencumbered operating fund balance, including the contingency reserve fund balance, of 10-15%. The district will target a minimum operating fund balance of 10-15%, and will take budget measures to maintain a minimum operating fund balance of one month of expenses or 8.3% of total annual operating fund expenditures, whichever is greater, as reserve for cash flow purposes and for economic uncertainties. A minimum operating fund balance of this level is prudent: (a) because reserves are an important component of a healthy school district budget and need to be available to cover everyday cash flow; (b) to protect against the risk of the district having insufficient operating funds to cover payroll or other operating expenses in the event of a delay or unplanned reduction of state payments or county payments; and (c) to maintain a high bond rating.

The district may assign custodial and maintenance salaries and benefits to the capital outlay fund, but in no event will such salaries and benefits exceed 25% of capital outlay annual tax revenues. This 25% cap is prudent to protect against the risk of the district having insufficient capital outlay funds to meet routine and unplanned facility maintenance needs, to support technology infrastructure and devices for students and staff, and to replace furniture, fixtures, and equipment.

Budget Year 2021-22 2022-23

Projected Tax Revenues $36,449,937 $36,645,333

25% of Tax Revenues $9,112,484 $9,161,333

Budgeted Salary & Benefits $6,862,002 * $9,162,002 *

* Included for Secondary Workload $2,300,000 $2,300,000

FundBeginning

Balance Receipts ExpendituresEnding

Balance

Bond & Interest $ 21,796,127 $ 33,417,968 $ 22,815,350 $ 32,398,745Special Assessment 505,192 767,744 850,000 422,936

OTHER DEBT FUNDS

Note: The Bond & Interest numbers above do NOT include the anticipated sell of series 2021A and 2021B bonds the first week of May. The budgeted numbers will be updated with the actual debt schedule prior to approving the budget in August.

$0 $5 $10 $15 $20 $25

2022

2024

2026

2028

2030

2032

2034

2036

2038

Millions

Debt Retirement Schedule

2012A - Refunding2015A - Construction2016B - ConstructionInterest

7.437 Current Mill Levy

7.434 Projected Mill Levy

$-

$20

$40

$60

$80

$100

$120

$140

Issue 1 - 2021A$132,110,000

Issue 2 - 2024A$132,110,000

Mill

ions

2021 Bond Authorization $264.22 Million

RemainingSpent

FLOW-THROUGH FUNDS TO THE STATE

Cost of Living $ 8,765,029

KPERS 31,774,499

Total $ 40,539,528

SELF-SUPPORTED FUNDS

FundBeginning

Balance Receipts ExpendituresEnding

Balance

Adult Supplemental $ 35,421 $ 0 $ 35,421 $ 0

E‐School 676,013 164,000 184,743 655,270

Food Service 2,003,935 11,774,288 13,259,181 519,042Summer School 618,202 437,000 828,110 227,092Special Liability 2,027,616 631,828 1,208,000 1,451,444Student Materials 438,632 699,000 1,137,632 0Textbook Rental 3,346,462 1,638,801 4,873,783 111,480Health Reserve 114,149 1,705,000 1,705,000 114,149Gifts, Grants & Donations 1,025,172 563,186 576,376 1,011,982Drug Free Schools‐Local 6,648 0 6,648 0

0.000 10.000 20.000 30.000 40.000 50.000 60.000

*2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

Mill Levy History

General FundLOBCapital OutlayBond & InterestCost of LivingDeclining EnrollmentSpecial AssessmentSpecial Liability

* Anticipated 2021 cost to owner of $200,000 home -- $1,146

Projected 2021Mill Levy – 51.999 (0.67% decrease)

Budget TimelineBudget Workshop – Non Operating Funds April 26, 2021

Budget Workshop – Operating Funds May 17, 2021

Notify County Clerk of Intent to Exceed Revenue Neutral Rate July 20, 2021 **

Approval of Publication July 26, 2021 *

Publication of Notice of Hearing in KC Star July 30, 2021 *

10-day Publication Noticed Ends August 9, 2021 *

Revenue Neutral & Budget Hearings and Adoption August 23, 2021 *

Budget Submission Deadline September 20, 2021 **

* Tentative** Upon adoption of HB2104 “Revenue Neutral” bill

Presentation can be found at SMSD.org – Budget & Finance Section