KIMBERLY AREA SCHOOL DISTRICT

1


2
KIMBERLY AREA SCHOOL DISTRICT BUDGET
HEARING Presented by Gary Kvasnica
Director of Business Services
3
KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE

To help address space issues related to
Enrollment Growth
District residents approved a 24,680,000
Building Project in November of 2004

• Classroom Additions at High School (completed in
  05/06)

• New K-4 Elementary and 5-6 Intermediate
  School in same building
• on Manitowoc and Coop Roads

• Conversion of Mapleview Elementary in a
  5-6 Intermediate School

• Demolition, Remodeling, Additions new HVAC
  Systems

4
KIMBERLY AREA SCHOOL DISTRICT

Building Project

Completed
5
KIMBERLY AREA SCHOOL DISTRICT
The Year in Review - 2006/07
Woodland Elementary and Intermediate School

Completed within Budget by the start of the 06/07
School Year
6
KIMBERLY AREA SCHOOL DISTRICT
The Year in Review - 2006/07
Mapleview Intermediate School

Renovations and Addition
Completed within Budget by the start of the 06/07
School Year
7
On behalf of the Kimberly Area School District
Citizens
Hoffman Corporation
Contractors and Vendors
Laborers
District Staff
Thanks for making this successful building
project happen!
8
KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW
- 2006/07
OTHER FACILITY IMPROVEMENTS
9
KIMBERLY AREA SCHOOL DISTRICT
The Year in Review 2006/07
Janssen Elementary School Improvements
Gym Section Re-roofed

3-year Carpet Replacement Plan completed
Old
New
10
KIMBERLY AREA SCHOOL DISTRICT The Year in Review
2006/07
Sunrise School Improvements
Two (2) Classrooms Converted back to LMC Space


After
Before
11
KIMBERLY AREA SCHOOL DISTRICT The Year in Review
2006/07
JRG Middle School Improvements
2 Computer Labs Remodeled


Before
After
12
KIMBERLY AREA SCHOOL DISTRICT The Year in Review
2006/07 TECHOLOGY IMPROVEMENTS

Replaced (400) 6-year old Computers at High
School
Installed new Computers at Woodland and Mapleview
13
KIMBERLY AREA SCHOOL DISTRICT
YEAR IN REVIEW 2006/07
Energy Savings
When Completed Woodland was considered to 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 Mapleview renovation included the
installation of a new state-of-the-art HVAC
System and Energy Efficient Windows
Energy efficient lighting was installed in
the High School Gym
These an other innovations resulted in
even Greater than anticipated Energy Savings
14
KIMBERLY AREA SCHOOL DISTRICT
The Year in Review - 2006/07
Refinanced portion of Long-Term Debt
(6.1Million) associated with recent Building
Project
Will Save the District and Tax Payers 321,530 in
Interest Payments over the term of the Debt
15
KIMBERLY AREA SCHOOL DISTRICT
The Year in Review - 2006/07
Settled Labor Agreements
05-07 Para-Professional Contract
07-09 Teachers Contract
Thanks to everyone made these happen!
16
KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2006/07
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.
17
KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2006/07
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
06/07 Contributions
1,170,926
Interest Earned
110,865
Retiree Benefit Disbursements
777,731
06/07 Fund Balance Increase
504,660
Current Trust Fund Balance
- 1,807,967

18
KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW -
2006/07
Post Retirement Benefit Liability Actuarial Study
Completed
Unfunded Accrued Liability in 04/05
9,614,488
Unfunded Accrued Liability in 06/07
8,689,909
(924,579) Decrease
Liability decreased for several reasons

• Changed Insurance Plans

• Increased Employee Contributions

• Changed Retirement Benefits

• Established and Invested in a Trust

This significant achievement is the result of the
combined efforts of the School Board, District
Administration and our Employees
19
KIMBERLY AREA SCHOOL DISTRICT YEAR IN
REVIEW - 2006/07
Enrollment continued to Grow

An increase of 154 Full Time Equivalent (4K and
5K count as .5) students to 3,914
20
KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW
- 2006/07
STUDENT ACHIEVEMENT
Testing results revealed the District continued
to see significant improvement in student
achievement.

Per SchoolFacts 06, a service of the Wisconsin
Tax Payers Alliance, the Kimberly Area School
District ranked in the bottom 10 of Wisconsin
School Districts in comparative expenditures on a
per pupil basis
CONTINUED GOOD RETURN ON INVESTMENT
21
KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2007/08
Financial Uncertainty
As of this Date, the State Budget has not been
approved

The District Budget is based on Revenue Limit and
State Aid estimates which may vary from what is
eventually approved by the State
If financial resources are less than
anticipated, this could have a negative impact on
the District and our Children
22
KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2007/08
FACILITY IMPROVEMENTS

23
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
2007/08
Sunrise School Improvements
Building Exterior to be Re-Painted


After
Before
24
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
2007/08
Westside School Improvements
1st Year of a 4-Year Carpet Replacement Plan


New
Before
Old
25
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
2007/08
Janssen Improvements
RE-ROOFED SECTION B


26
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
2007/08
Janssen Improvements
Ceiling Tile Replacement and Lighting Retrofit in
Hallways


Before
After
Reduced Energy Costs
27
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
2007/08
Janssen Improvements
Remodeled Kitchen


Before
After
Health, Safety and Aesthetics
28
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
Chalkboards at Janssen, Middle School and
Mapleview to be replaced


Before
After
Environmentally Unfriendly, Labor Intensive to
Clean
29
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
JRG Middle School Improvements
Renovated the Middle School Art Room


After
Before
30
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
High School Improvements
Seal-Coated Parking Lots to Extend life of Asphalt


Before
After
31
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007-8
Administration Building
Electrical/Data Infrastructure Upgrades


After
Before
32
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
33
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
TECHNOLOGY IMPROVEMENTS
34
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
TECHNOLOGY IMPROVEMENTS
Renovated Computer Lab at Westside
Implemented a State-of-the-Art Food Service Point
of Sale System
35
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
TECHNOLOGY IMPROVEMENTS
Installed Ceiling Mounted Projectors at High
School and Middle School
Enhanced Student Learning
36
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
ADDITIONAL TECHNOLOGY IMPROVEMENTS
Replaced old Computers at Sunrise
Replaced Servers
Upgraded Student Accounting Software
To be Completed
Implement Email Archiving System
Upgrade Firewall
Implement New Centralized Back-up System
37
KIMBERLY AREA SCHOOL DISTRICT
WHATS NEW IN 2007/08
Settled Labor Agreement
07-09 Para-Professional Contract
All Labor Contracts have been settled through
07/08
38
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN -
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
39
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08 District Wellness Program

New Labor Agreement provides teachers with a
financial incentive to participate in the
District Sponsored Wellness Program
Teaching staff will receive a 1 reduction
in their premium contribution if they participate
in a Health Risk Assessment Program that
includes blood testing
The goal of this 3-year pilot program is to have
a healthier staff and ultimately reduced
insurance premiums
40
KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN
2007/08
Enrollment
The District projects continued Enrollment Growth
41
KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
The District is currently in good Financial Shape
Financial Position

• State Budget Deficit

• Even more restrictive Revenue Controls are a
  possibility

District will need to remain diligent to
maintain its strong financial position
42
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!
43
KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
Post Retirement Benefits
District has reduced our Liability
However, the Liability will start growing as our
young staff ages.
The District will need to continue to find ways
to keep cost increases in check if we are to
prevent Post Retirement Benefits from negatively
impacting future budgets
44
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

45
KIMBERLY AREA SCHOOL DISTRICT
THE FUTURE
JANSSEN BOILER REPLACMENT
Boilers are original equipment 1961 1966
Capital Improvement Plan suggests 2010/11
replacement
Money is being set aside annually in the Capital
Improvement Fund
Should the Boilers fail before 2010/11 or if we
are unable to set aside money, the District will
need to find alternative methods of funding this
project.
46
KIMBERLY AREA SCHOOL DISTRICT BUDGET MESSAGE
ASSUMPTIONS AFFECTING TAX LEVY AND RATE FOR
2007/08

• Revenue Limit

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

• Property Valuation

- Estimated at 1.5. 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!
47
KIMBERLY AREA SCHOOL DISTRICT BUDGET HIGHLIGHTS
Budget DOLLAR PERCENT 2007-08
CHANGE CHANGE 9,012,874 -720,405 -7.40
Actual 2006-07 9,733,279 4,392,610
450,000 17,852 14,593,571
TAX LEVY GENERAL FUND DEBT SERVICE CAPITAL
IMPROVEMENTS COMMUNITY SERVICE TOTAL
4,601,893 209,283 4.76
498,100 48,100 10.69
45,200 27, 518 155.63
14,158,067 - 435,504 - 2.98
48
TAX RATE PER 1,000 OF EQUALIZED ASSESSED
VALUATION
Actual 2006-07 6.39 2.89 0.30
0.01 9.59
Budget DOLLAR PERCENT 2007-08 CHANGE
CHANGE 5.84 - 0.55 - 8.61
GENERAL FUND DEBT SERVICE CAPITAL IMPROVEMENTS
COMMUNITY SERVICE TOTAL
2.98 0.09 3.11
0.32 0.02 6.67
0.03 0.02 200.00
9.17 -0.42 - 4.38

Tax rate is estimated. The actual rate can not
be determined until property valuation is
certified by the Department of Revenue in
October.
49
2007-08 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.
50
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)

51
General Fund

• By far the Largest Fund

• Operating Budget

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

Unaudited 2007-08 Dollar
Percent GENERAL FUND 2006-07 Budget
Change Change Revenue (Money Coming In)
34,480,193
36,264,905
1,784,712
5.18
Taxes are estimated to decreased (720,405) and
Special Project Grants by (242,472). The
increase in total revenue is primarily related to
an increase in General State Aid of 2,797,271.
52
Unaudited 2007-08
Dollar Percent GENERAL FUND 2006-07
Budget Change Change Expenses
(Money Going Out)
34,194,528
36,264,905
2,070,377
6.05
Salary and Benefit Expenses for new and existing
staff increased by 2,713,493. This increase
was offset by a (643,116) decrease in Non-Salary
and Benefit related expenses.
53
KIMBERLY AREA SCHOOL DISTRICT
2007-08 STAFFING
Additional Staff includes (2) Science Teachers
at High School (1) Math Teacher at High School
(1) Digital Technology Teacher at High
School (20) Music Teacher at Middle School (2)
Intermediate School Teachers (2.5) 4K and 5K
Elementary Teachers (2) General Elementary
Teachers (50) Literary Resource Teacher
(12.5) Special Education Teacher (50) 4K/5K
Para Professionals (50) Special Education Para
Professional (1) Intermediate Principal at
Woodland (1) Intermediate Lead Secretary at
Woodland (50) District Psychologist (1)
Administrative Assistant to Technology
Coordinator (1) Library Coordinator at High
School (50) Educational Interpreter Staffing
Reductions Include (50) Librarian at High
School (50) General Elementary Teacher
Positions (1) District Social Worker (50)
Library Para Professional (1) Read Right
Tutor (50) Secretarial Position Net Staffing
Increase 13.325 Employees
Additional Staff may be hired after the start of
the school year to address unanticipated
enrollment and growth related issues.
54
SIGNIFICANT GENERAL FUND EXPENSE INCREASES

• Salaries for New and Existing Staff

1,643,680

• Health Insurance Premiums
• For New and Existing Staff

509,992
160,627

• Post Retirement Benefit Contributions

• Utility Costs

131,560

• Tuition Costs for Kimberly Residents
• attending other School Districts

102,154

55
SIGNIFICANT CAPTIAL EQUIPMENT PURCHASES

• Maintenance
• Equipment

17,500
50,000

• Copier Replacements

Computer System Replacements
49,500
56
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
- (206,000)
Computer Equipment
- (279,892)
Interfund Transfers
- (77,326)
57
(No Transcript)
58
(No Transcript)
59
KIMBERLY AREA SCHOOL DISTRICT
2007 ANNUAL MEETING
Motion will be made to adopt a Tax Levy of
14,158,067 as presented to you, the electorate
60
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!
61
Proposed Land Sale
LOT 57
Woodland School
Lot 57