KIMBERLY AREA SCHOOL DISTRICT

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KIMBERLY AREA SCHOOL DISTRICT

2008 ANNUAL MEETING Monday September 22,
2008 630 PM - Budget Hearing 700 PM - Annual
Meeting KIMBERLY HIGH SCHOOL W2662 Kennedy
Avenue Kimberly WI 54136

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KIMBERLY AREA SCHOOL DISTRICT BUDGET
HEARING Presented by Gary Kvasnica
Director of Business Services
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KIMBERLY AREA SCHOOL DISTRICT Budget Message THE
YEAR IN REVIEW - 2007/08
STUDENT ACHIEVEMENT
As evidenced by our test scores, the District
continues to be one of the higher achieving
Districts in the Fox Valley, as well as the State
The Kimberly Area School District as a low
spending, high achieving District, continues to
provide our Community with great value
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KIMBERLY AREA SCHOOL DISTRICT Budget Message THE
YEAR IN REVIEW - 2007/08
Compiled by the Wisconsin Tax Payers Alliance
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KIMBERLY AREA SCHOOL DISTRICT Budget Message THE
YEAR IN REVIEW - 2007/08
FACILITY IMPROVEMENTS
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
2007/08
JRG Middle School Improvements
Renovated the Middle School Art Room


Before
After
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN
REVIEW - 2007/08
Janssen Improvements
Remodeled Kitchen


Before
After
Health, Safety and Aesthetics
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
2007/08
Chalkboards at Janssen, Middle School and
Mapleview to be replaced


Before
After
Environmentally Unfriendly, Labor Intensive to
Clean
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
2007/08
High School Improvements
Seal-Coated Parking Lots to Extend life of Asphalt


Before
After
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN
REVIEW - 2007/08
Janssen Improvements
Ceiling Tile Replacement and Lighting Retrofit in
Hallways


Before
After
Reduced Energy Costs
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2007/08
Westside School Improvements
1st Year of a 3-Year Carpet Replacement Plan


New
Before
Old
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN
REVIEW - 2007/08
Janssen Improvements
RE-ROOFED SECTION B


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KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW
2007/08
Administration Building
Electrical/Data Infrastructure Upgrades


After
Before
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KIMBERLY AREA SCHOOL DISTRICT
FACILITIES
The improvements just listed have been paid for
out of Capital Improvements Fund
Separate Fund that can only be used for Capital
Improvements
Helps insure that Capital Improvements done when
needed
Tax Levy for this Fund is included within Revenue
Limits
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2007/08
TECHNOLOGY IMPROVEMENTS
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2007/08
TECHNOLOGY IMPROVEMENTS
Renovated Computer Lab at Westside
Implemented a State-of-the-Art Food Service Point
of Sale System
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2007/08
TECHNOLOGY IMPROVEMENTS
Installed Ceiling Mounted Projectors at High
School and Middle School
Enhanced Student Learning
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2007/08
ADDITIONAL TECHNOLOGY IMPROVEMENTS
Replaced old Computers at Sunrise
Replaced Servers
Upgraded Student Accounting Software
Implement Email Archiving System
Upgrade Firewall
Implement New Centralized Back-up System
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KIMBERLY AREA SCHOOL DISTRICT
YEAR IN REVIEW 2007/08
Energy Savings
Woodland School is considered to be one of the
most energy efficient schools in the State of
Wisconsin
The District received an award from WE Energy for
Woodlands Energy Efficient Design

The District began the first year of two year
lighting replacement Plan at Janssen
Energy efficient lighting was installed in
the Administration Building
A computerized Load Shedding program was
implemented that allows the District to reduce
energy loads at peak times, thereby reducing
consumption and costs
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KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN
REVIEW - 2007/08
Continued Health Insurance Cost Containment
The Rising Cost of Health Insurance continued to
be a major concern in this era of revenue controls
Our Teaching Staff agreed to move to a more cost
effective Health Insurance Plan and Increased
their insurance contribution
Non-Teaching Staff moved to a single Carrier with
Guaranteed Rates through June 30, 2009
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KIMBERLY AREA SCHOOL DISTRICT
The Year in Review - 2007/08
Under Revenue Controls the District can not
simply increase revenues to meet anticipated
expenditures
We need to plan now to make sure we have
financial resources to meet future education needs
A comprehensive Budgeting Model was implemented
in 07/08 to further assist the District in
financial planning for the future
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KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2007/08
Post Retirement Benefits
Paid Health Dental Benefits for certain staff
retiring after age 55
Post Retirement Benefits
Negotiated as a cost saving measure many years ago
Several recent developments have Impacted

• Cost of Insurance has risen dramatically

• New Accounting Requirements requiring Districts
  to pre-fund this Liability

The costs of these future retirement benefits
will be substantial
To help protect future school boards and
taxpayers from this significant future
Liability the District established a Trust to
help fund this Liability.
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KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2007/08
Post Retirement Benefit Trust
Created in 2003/04
Can only be used to pay Retiree Benefits
District is not obligated to make payments toward
the Trust
07/08 Contributions
1,392,479
Interest Earned
131,136
Retiree Benefit Disbursements
765,001
07/08 Fund Balance Increase
758,615
Current Trust Fund Balance
- 2,566,582

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KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2007/08
Post Retirement CDO Investment Market Value
Decreased
In December of 2006 the District invested
700,000 from the Post Retirement Trust and
borrowed 4,300,000 to purchase 5,000,000 in a
Collateralized Debt Obligations (CDOs) for the
Trust

Credit linked AA rated Corporate Debt of
approximately 140 investment grade companies that
matures in 7-years.
Goal Generate approximately 550,000 investment
incomes at end of the 7 year term
The market value (value if we were to sell
today) of our investment declined substantially
in 07/08

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KIMBERLY AREA SCHOOL DISTRICT YEAR IN
REVIEW - 2007/08
Enrollment continued to Grow
Slower Rate

An increase of 84 Full Time Equivalent (4K and 5K
count as .5) in students 07/08 vs. 154 in 06/07
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09!

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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JANSSEN BOILER REPLACMENT
Replaced 47 year-old Boilers with new Energy
Efficient System
Anticipate 30 40 reduction in Energy
Consumption
Capital Improvement Fund established by District
allowed us to set aside funding over a several
year period
Unlike many Districts, we were able to fund our
project without having to ask tax payers for
additional money.
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JANSSEN BOILER REPLACMENT


Before
After

Heat pipes were installed in ceiling with
ceiling/light replacement project to reduce costs
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JOHN STREET ATHLETIC COMPLEX UPGRADES



Excavated a large retention pond to address
drainage issues
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JOHN STREET ATHLETIC COMPLEX UPGRADES



Removed compacted soils for stadium football
field and installed new fill along with Synthetic
Field Turf
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JOHN STREET ATHLETIC COMPLEX UPGRADES
SYNTHETIC FIELD TURF

• Safer

• Lower Maintenance costs

• Increased Usability

The approximately 700,000 in Athletic Complex
Upgrades Funded through Capital Improvement Fund
and Community Donations
424,505 in commitments to date
Annual Payment on 10-year lease/purchase of turf
is 37,878
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
JOHN STREET ATHLETIC COMPLEX UPGRADES



Athletic Complex Donor Wall constructed and
donated to the District by Sanderfoot Masonry and
other contractors
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KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2008/09
OTHER FACILITY IMPROVEMENTS

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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Westside School Improvements
2st Year of a 3-Year Carpet Replacement Plan



08/09
07/08
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Chalkboards at Janssen replaced with Whiteboards


Before
After
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Sunrise School Improvements
Painting of Building Exterior completed


Before
After
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Sunrise School Improvements
Asphalt in Visitor Parking Lot Milled and Replaced


Before
After
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
JRG Middle School Improvements
RE-ROOFED SECTION B


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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Janssen Improvements


Drain tiles installed in play area to address
water build-up after snow and heavy rainfall
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Mapleview Improvements
Replaced Bathroom Partitions


After
Before
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Woodland Improvements


Handicap Accessible Playground with Rubberized
Surface for Wheelchair Access
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
JRG Middle School


Sandy Huiting Learning Center
Outside Place for Kids to Meet and Learn

Parent and Community Funded
New Retention Pond allowed us to Build
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW
IN 2008/09
Energy Conservation
The new Boiler System at Janssen is estimated to
reduce energy consumption between 30-40

Janssen lighting replacement Plan completed
Mapleview light replacement Plan completed with
energy efficient lights in entrances
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Increased Energy Costs Projected even with
Conservation Efforts


Budget includes an 18.8 increase in Utility Costs
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
TECHNOLOGY IMPROVEMENTS
Replaced old Computers at the Middle School
Added Hardware and Software to improve
interoperability between different software
products
Replaced Network Switches to increase performance
Increased Storage Capacity
Installed video projectors at High School and
Middle School to enhance learning
Implemented Mobile Computer Lab at Middle School
to enhance learning
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09 Implementing a New Employee Savings Plan

Meets new IRS Guidelines for 403(b) Tax Deferred
Savings Plans for Public Sector Employees
Similar to 401K in Private Sector
Offers Employees a variety of no-load mutual
funds at a cost significantly lower than previous
plans

Investment Providers selected by a Volunteer
Committee of District Employees
After-tax (Roth) component now available
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09 Self-Funded Dental Insurance Change

Moved to New Plan Administrator For Non-Teaching
Staff Self-Funded Dental Plan
Reason
Vendor has negotiated lower fees with Dentists
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09 Post Retirement Investment Trust

The Kimberly Area School District conducted a
review of our CDO Investment to determine why the
large decline in market value
As a result of this review, the District believes
it was mislead regarding the investment and is
pursuing legal options

The investment is in a separate Trust that has no
impact on our Operating Budget
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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09 Wisconsin Retirement System Unfunded
Liability Paid-Off

• Incurred Liability many years ago when
• joined State Pension Fund

• Refinanced in 2003

• Final payment to be made in March of 09

• Allowed District to pay-off loan sooner
• and reduced interest payments by
• approximately 400,000

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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09 District Owned Land Sold

At last Annual Meeting electorate Authorized
District to sell a lot adjacent to Woodland School
Lot was recently Sold for 37,500!

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KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2008/09
Enrollment
The District projects continued Growth at a
slower rate
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KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
The District receives a large percentage of its
funding from the State

State has had difficulty balancing its Budget
over the last several years
Even more restrictive Revenue Controls are a
possibility
District will need to remain diligent to
maintain its strong financial position
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KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
District is currently in good Financial Shape
The District receives significantly less money
per student than the state average
If Enrollment Growth and corresponding Additional
Revenue lessens
District will need to adjust spending to
maintain its strong financial position
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KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
Health Insurance
As Costs continue to rise
The District, our Labor Unions, Health Care
Providers, Insurance Carriers, State and Federal
Government must all work together to address
issues!
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KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
Energy Costs
Energy Costs are rising at a faster rate then our
Revenue
The District has been a leader in Energy
Conservation
Less money will be available to educate children
unless we continue to find ways to reduce energy
consumption
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KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
Technology
The District has paid for a large portion of our
Technology with Grant Funding and Referendum
Proceeds
As these Funds become unavailable, the District
will be challenged to meet the goals for our
Technology Plan

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KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE
ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR
2008/09

• Tax Levy

Total Amount of Tax Revenue

• Tax Rate

The amount a homeowner would pay for every
1,000 of Equalized Property Value

Equalized Value is total Fair Market Value of all
properties within the District. This includes
several municipalities.
Assessed Value is the property value as
determined by the individual Municipality
If the Tax Rate were 9.00 per 1000 of Equalized
Valuation and an individuals property had an
equalized value of 100,000 the tax rate would be
900



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KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE
ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR
2008/09

• Revenue Limit

- Cost of Living Increase based on Current Law
- 40 Additional Students
- If more Students, Revenue Cap and Tax Levy
will increase

• Property Valuation

- Estimated at 2.0. If higher, Tax Rate will
decrease

• Equalization (State) Aide

- If less than projected, Tax Levy will increase

• Business Computer Valuation

- If higher than projected, Tax Levy will
decrease

The above estimates should be finalized in
October!
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KIMBERLY AREA SCHOOL DISTRICT BUDGET HIGHLIGHTS
Budget DOLLAR PERCENT 2008-09
CHANGE CHANGE 9,497,968 204,911
2.2
Actual 2007-08 9,293,057 4,601,893
498,100 45,200 14,438,250
TAX LEVY GENERAL FUND DEBT SERVICE CAPITAL
IMPROVEMENTS COMMUNITY SERVICE TOTAL
4,260,503 -341,390 -7.42
553,150 55,050 11.05
46,415 1,215 2.69
14,358,036 - 80,214 - 0.56
Levy for Community Activities such as Fitness
Center that are not directly related to school
education programs
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TAX RATE PER 1,000 OF EQUALIZED ASSESSED
VALUATION
Actual 2007-08 5.95 2.95 0.32
0.03 9.25
Budget DOLLAR PERCENT 2008-09 CHANGE
CHANGE 5.96 0.01 0.17
GENERAL FUND DEBT SERVICE CAPITAL IMPROVEMENTS
COMMUNITY SERVICE TOTAL
2.68 -0.27 -9.15
0.35 0.03 9.38
0.03 0.00 0.00
9.02 -0.23 - 2.49

Tax rate is estimated. The actual rate can not
be determined until property valuation is
certified by the Department of Revenue in
October.
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2008-09 Property valuation and the
corresponding tax rate are estimated. Actuals
can not be determined until property
valuation is certified by the Department of
Revenue in October.
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FUND ACCOUNTING

• District is required by law to account for money
  in separate accounting
• entities called funds.

• Each fund has a specific purpose.

• Each Fund accounts for money received (Revenue)
  and money spent
• (Expenses)

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General Fund

• By far the Largest Fund

• Operating Budget

• Money comes primarily from State Aid and the
  Property Tax Levy

Unaudited 2008-09 Dollar
Percent GENERAL FUND 2007-08 Budget
Change Change Revenue (Money Coming In)
36,258,205
38,554,949
2,296,744
6.33
The increase in total revenue is primarily
related to an estimated increase in General State
Aid of 1,915,950. Other increases include an
additional 223,387 from other school districts
for children attending our District under Open
Enrollment and 204,911 from Taxes
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Unaudited 2008-09
Dollar Percent GENERAL FUND 2007-08
Budget Change Change Expenses
(Money Going Out)
36,028,180
38,554,949
2,526,769
7.01
Salary and Benefit Expenses for new and existing
staff increased by 1,741,270.
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KIMBERLY AREA SCHOOL DISTRICT
2008-09 STAFFING
Additional Staff includes (1) English Teacher
at High School (1) Psychology/Social Studies
Teacher at High School (1) Math Teacher at High
School (1) Marketing Teacher at High School (1)
Physical Education Teacher at High School (.5)
Speech and Language Teacher (1)
Elementary/Intermediate Computer Literacy
Teacher (1) Intermediate Teacher (1.5) Combined
Equivalent of Elementary Teachers (1) District
Curriculum Coordinator (.5) Psychologist (4)
Full-Time Special Education Para-Professionals (4
) 50 Special Education Para-Professionals Staff
ing Reductions Include (1) Intermediate School
Principal (1) Coordinator of Pupil Services (1)
Business Education Teacher at High School (1)
Middle School English Teacher (1) Reading
Tutor (.5) Kindergarten Para-Professional Net
Staffing Increase 11 Employees

• Please note that 3 full-time and 2 part-time
  (equivalent of 4 full-time) Special Education
  Para-Professional positions
• were added during the 07/08 school year that were
  not budgeted for in 07/08 and are thus included
  as new positions in 08/09.

Additional Staff may be hired after the start of
the school year to address unanticipated
enrollment and growth related issues.
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SIGNIFICANT GENERAL FUND EXPENSE INCREASES

• Salaries for New and Existing Staff

980,438

• Health Insurance Premiums
• For New and Existing Staff

509,992

• Utility Costs

131,560

• Tuition Costs for Kimberly Residents
• attending other School Districts

227,096

• Transportation costs for cost-of-living
• increase and one additional bus route
• for Students bused to Holy Spirit School

63,500

• Interfund Transfer to the Special Education Fund
  to cover
• primarily Salary and Benefits costs of Special
  Education Staff

567,820
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SIGNIFICANT CAPTIAL EQUIPMENT PURCHASES
Copier Replacements
50,000
Computer System Replacements
167,000
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SIGNIFICANT GENERAL FUND EXPENSE DECREASES
Budget includes the same dollar allotment per
student as last year in non-salaried expenditures
where practical
Text Books and Materials
- (53,000)
Computer Equipment
- (76,613)


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KIMBERLY AREA SCHOOL DISTRICT
2008 ANNUAL MEETING
Motion will be made to adopt a Tax Levy of
14,358,036 as presented to you, the electorate
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More detailed information is available in the
Annual Meeting Booklet or can be obtained at the
Administrative Offices on 217 E. Kimberly Avenue
Do you have any questions?
Gary Kvasnica, the Director of Business Services,
can be reached at 788-7900.
Thank You!