Mount Vernon Community School District

1
2006-2007 Budget

• Mount Vernon Community School District

2
2006-2007 Budget Presentation

• Iowa K-12 school budgets contain some confusing
  calculations in an effort to provide funding
  equity for each child, no matter what school
  district that child attends.
• The following is a simplified overview of how the
  Mount Vernon schools property tax rate is
  calculated and the financing of the total school
  budget is determined.

3
2006-2007 Budget Presentation

• How did we arrive at a property tax rate of
  17.86?
• How did we arrive at a 13,533,062 total school
  budget?

4
Where to start?

• Since 1971 the State of Iowa Legislature and
  Governor have annually determined how much it
  costs to educate a student
• For the 2005-2006 school year that cost per
  student was set at 4,931

5
4 Allowable Growth

• For the 2006-2007 school year the Legislature and
  the Governor increased the per student education
  cost by 4 allowable growth

6
5,128 Per Student Cost Pays For?

• Teachers
• Computers
• Classroom Materials
• Librarians
• Counselors
• School Nurse
• Aides
• Principals

• Secretaries
• Utilities
• Custodians
• Bus Drivers
• School Buses
• Other Support Staff

7
5,128 Does Not Pay For?

• School Buildings
• Breakfast and Lunch
• School District Liability Insurance
• Extra-curricular student activities in areas such
  as athletics, music, and speech
• School Day Care
• (Later we will see how these costs are funded.)

8
1,040 students

• We know it costs 5,128 to educate each student,
  so how many students do we have?
• On the third Friday of September, 2005 we counted
  1,040 students attending school who also live in
  the Mount Vernon School District
• This student count becomes the basis for the
  2006-2007 school budget

9
Cost to educate 1,040 students

• 1,040 students
• x
• 5,128 cost per student
• 5,333,120 basic cost for the education of
  1,040 students
• This total is the main source of funding for the
  Mount Vernon School District

10
Plus 873,051 in Other Costs

• 461,520 cost of special education students
  (equivalent of 90 students)
• 331,085 Grant Wood Area Education Agency
  Services
• 62,775 At-Risk Student Program
• 17,671 in other costs

11
Total Cost

• 5,333,120 basic cost for educating 1,040
  students at 5,128 per student
• 873,051 in other education costs for those
  1,040 students
• 6,206,171 in Total Costs relating to the
  education of 1,040 students

12
Property Taxes and State Aid

• The school district receives funding for this
  6,206,171 in student costs from two sources
• Local Property Taxes
• State Aid Payments from the State of Iowa (funded
  through income taxes, sales taxes, other sources
  of state funding)

13
Property Tax Rates

• Through a formula called the State Foundation
  Program the State of Iowa tries to make sure that
  property tax rates for K-12 school education are
  about the same in all school districts statewide

14
Property Tax Rates

• How can school property tax rates be about the
  same statewide, if school districts have
  different property tax valuation (the value of
  land, houses, businesses, agricultural land, and
  industry)?

15
State Aid

• For school districts with relatively low property
  tax valuation in the district, the State gives a
  larger share of State Aid payments to those
  school districts leaving a smaller share that
  must be funded by local property taxes

16
State Aid

• For school districts with relatively high
  property tax valuation in the district, the State
  gives a smaller share of State Aid payments
  leaving a larger share that must be funded by
  local property taxes
• The result for both districts is that the
  property tax rate for education of a student is
  about the same

17
Mount Vernon State Aid

• In Mount Vernon because the value of property in
  the school district is relatively low in
  comparison to other school districts, the
  district receives a larger share of State Aid
  payments than most schools in the state.
• For 2006-2007, the district will receive
  4,369,656 in State Aid payments from the State
  of Iowa

18
Portion Funded by Property Taxes

• 6,206,171 in Total Costs relating to the
  education of 1,040 students
• 4,369,656 State Aid payments (70)
• 1,836,515 portion to be funded by property
  taxes (30)

19
Other Property Taxes

• 1,836,515 Cost of educating 1,040 students
• 6,920 Instructional Support for classroom
• 177,620 Funding for other programs
• 2,021,055 General education costs

20
General Fund Property Tax Rate

• 2,021,055 property taxes related to the
  classroom teaching
• Divided By
• 170,264,412 taxable property tax valuation in
  the Mount Vernon School District
• Times 1,000
• 11.87 General Fund property tax rate per
  1,000 of taxable property tax valuation

21
What Other Property Taxes?

• Management Fund (insurance)
• Debt Service Fund (prior year major building
  construction projects)
• Physical Plant and Equipment Fund (PPEL)
  (building construction projects and repairs)

22
Management Fund

• 114,098 in estimated school district property
  and liability insurance costs for 2006-2007
• Divided By
• 170,264,412 taxable property tax valuation in
  the Mount Vernon School District
• Times 1,000
• .67 Management Fund property tax rate per
  1,000 of taxable property tax valuation

23
Debt Service Fund

• 688,700 payment on debt to construct new high
  school, remodel middle school, and help fund the
  elementary school playground
• Divided By
• 188,755,063 taxable property tax valuation in
  the Mount Vernon School District including TIF
• Times 1,000
• 3.65 Debt Service Fund property tax rate per
  1,000 of taxable property tax valuation

24
Voter Approved Physical Plant and Equipment Fund

• 252,932 mostly used for payment on loans to
  construct new high school, remodel middle school,
  and help fund the elementary school playground
• Divided By
• 188,755,063 taxable property tax valuation in
  the Mount Vernon School District including TIF
• Times 1,000
• 1.34 Voter PPEL Fund property tax rate per
  1,000 of taxable property tax valuation

25
School Board Approved Physical Plant and
Equipment Fund

• 62,289 for school building repair
• Divided By
• 188,755,063 taxable property tax valuation in
  the Mount Vernon School District including TIF
• Times 1,000
• .33 PPEL Fund property tax rate per 1,000 of
  taxable property tax valuation

26
Total Property Tax Rate

• 11.87 General - teaching/support
• .67 Management insurance
• 3.65 Debt Service major
• building construction
• 1.34 Voter PPEL building construction
• .33 PPEL building repair
• 17.86 Total 2006-07 Property Tax Rate

27
Examples of Annual Property Taxes

• Home owner with 100,000 home would pay 821.44
  in school district property taxes
• 50 acres of farmland would pay approximately
  655.85
• Business with 100,000 valuation would pay
  1,770.84

28
Property Tax Calculator

• Use the following website to calculate the school
  districts property taxes for different property
  valuations or acres
• http//www.ia-sb.org/finance/Calculators_Tools/Lev
  yImpactCalculator2005.xls

29
2006-2007 budget

• So that explains the calculation of the total
  property tax rate.
• So what are the funding components of the
  13,533,062 total school budget?

30
13,533,062 Total Budget?

• General Fund classroom teaching
• Activity Fund extra curricular student
  activities
• Management Fund property and liability
  insurance
• PPEL Fund building construction and repairs
• Capital Projects Fund building construction
• Debt Service Fund debt repayment for building
  construction
• Nutrition Fund student meals
• Day Care Fund elementary school day care

31
8,452,583 General Fund

• As we saw previously, the General Fund receives
  6,206,171 in funding relating to the education
  of 1,040 students through the Foundation Formula
  funded 70 by state aid payments and 30 by local
  property taxes
• And an additional 2,246,412 in General Fund
  funding sources, which will be used for classroom
  teaching and direct or indirect support of
  classroom teaching, come from the following
  sources

32
Other General Fund Sources

• 278,366 6 Instructional Support Income Tax
  Surtax on Iowa income tax return
• 1,255,620 received from other school districts
  for open enrollment students, special education
  students, class sharing students, and drivers
  education
• 24,000 interest income

33
Other General Fund Sources

• Other State of Iowa funding
• 42,422 Instructional Support
• 261,626 Teacher Salary Supplemental Pay
• 53,820 Early intervention reading
• 11,700 Teacher Mentoring
• 244,782 other state funding

34
Other General Fund Sources

• Federal Funding
• 46,565 Title I Grants
• 13,671 other federal grants such as drug free,
  IDEA, vocational

35
Total General Fund

• 8,452,583 is the total of all the above funding
  sources for the General Fund to pay for classroom
  teaching and support

36
Activity Fund

• Extra curricular student activities outside of
  the classroom such as athletics, music contests,
  speech contests, plays, musicals, high school
  trips
• 294,500 funding from adult and student event
  fees, Booster Club contributions, Music
  Association contributions, PRIDE contributions,
  WETAP contributions

37
Management Fund

• 114,098 to pay school district insurance costs
  for property and liability insurance
• Funding from 113,698 property taxes and 400
  miscellaneous revenue

38
PPEL Fund

• Voter Approved PPEL and Board Approved PPEL
• To pay for building construction costs and major
  repairs
• Funding from 315,221 in property taxes and
  5,200 miscellaneous revenue

39
Debt Service Fund

• For debt repayment for major building
  construction projects
• Funding from 688,700 in property taxes and
  1,500 in miscellaneous revenue

40
Nutrition Fund

• For school breakfast and lunch meals for adults
  and students
• Funded from 383,730 parent payments, 136,324
  government subsidies, and 1,800 in miscellaneous
  revenue

41
Day Care Fund

• Before and after elementary school day care fund
• Also the new summer school day care program
• 72,430 in parent payments and 300 in
  contributions from other sources

42
10,466,786

• 8,452,583 General classroom
• 294,500 Activity extra curricular
• 114,498 Management insurance
• 320,421 PPEL construction/repairs
• 690,200 Debt Service - construction
• 521,854 Nutrition meals
• 72,730 Day Care elementary school
• 10,466,786 Total Budget Before Other
  Construction Costs

43
3,066,276 Construction Costs

• The school district has 3,066,276 remaining from
  construction bond proceeds and other sources for
  the continuing costs of high school and middle
  school buildings construction.

44
13,533,062 Total Budget

• So from the above sources we arrive at the total
  school district budget of 13,533,062.
• So generally how will these funds be spent in the
  2006-2007 school district fiscal year?

45
13,533,062 Total Budget
46
2006-2007 School Budget

• That is how we arrived at the Mount Vernon
  Schools property tax rate and total school
  budget.
• For further information, see the Financial
  Information on the school website
  www.mountvernon.k12.ia.us or call the
  Superintendents office at 895-8845