Capital Improvement Strategic Planning Committee

1. Capital Improvement Strategic Planning Committee

2. Fund Types Governed by state law Generally fall into the following categories Operating funds Self-Supported funds Federal Funds Flow-thru Funds Capital Outlay Bond Project Fund Debt Service

3. Operating Funds • Used to pay the day-to-day expenses of the district including salaries, benefits and supplies. • Funding is based on a state formula according to the number of students and various weighting categories. • Other funds cannot contribute a portion of their revenue stream nor their balances to help support operations.

4. Self-Supported • These funds have dedicated revenue streams to support expenditures. • Examples include food service, summer school, gifts, etc.

5. Federal Funds • A grant application must be completed and approved by the granting agency. • Funds must be spent according to the application. • Typically the grant does not allow supplanting. Expenditures must be beyond the normal allocation and cannot substitute for current expenditures funded with local and state funds.

6. Flow-Thru Funds • These funds are established in the law as a conduit for tax revenue. • In the case of KPERS, the state contribution is wired to school districts and then immediately wired back to the state in order that the district will post the state contribution into district books. • Two of the school finance formula weightings require local districts to collect tax proceeds locally and then remit the entire amount to the state.

7. Capital Outlay • State law allows a local school district to assess a tax rate of up to 8 mills on the real and personal property of its taxpayers. • The district must publish its intent to levy a tax rate and patrons can force a vote on the issue if a petition with enough signatures is generated (protest petition). Each authorization is limited to a 5 year period. Shawnee Mission is in the 3rd year of its current authorization which expires June 30, 2014. • The tax rate also generates motor vehicle taxes. • Districts with high assessed valuations can collect more money for capital projects. • State law provides assistance to districts with low assessed valuations.

8. Capital OutlayHow the Tax Rate Works • The county assessor establishes a value for the property. • Residential property is assessed at 11.5% of the value. • The rate is applied to the assessed valuation.

9. Capital Outlay – Total District Revenue

10. Bond Project Fund • The district can finance a project through the issuance of general obligation bonds. • The issue must be placed on a ballot for public vote. • If approved by the majority of electors, the district can sell bonds on the open market. The proceeds are placed into a project fund and can be used to make expenditures to complete the scope of work.

11. $207.8 million outstanding

12. Debt Service Fund • The purpose of this fund is to pay the principal and interest payments for outstanding bond issues. • The district computes the necessary tax rate that, when applied to the assessed valuation of the district, will generate enough revenue to pay the principal and interest payments.