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Multi-Year Analysis. Waunakee School District Submitted by: Jeff Pruefer UW-Whitewater School Business Management Graduate Program. Five Areas Explored. District Membership (Enrollment) Property Valuation Equalization Aid Revenue Limit Tax Levy. Membership (Enrollment).
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Multi-Year Analysis Waunakee School District Submitted by: Jeff Pruefer UW-Whitewater School Business Management Graduate Program
Five Areas Explored • District Membership (Enrollment) • Property Valuation • Equalization Aid • Revenue Limit • Tax Levy
Membership (Enrollment)Current Year Data *For DPI purposes, FTE includes open enrollment out, but not in.
Membership Relevance • District is an anomaly when compared statewide (most districts losing students) • State aid is reflected positively by increased enrollment • Revenue limit continues to increase due to increased enrollment numbers • Continuous expansion in community equates to an increase in enrollment being anticipated in years to come • Open enrollment revenues have a positive impact on budget (more in than out)
Membership challenges • Increased enrollment might require additional staffing • Increased enrollment will require new facilities (See chart below) • Both of these items will lead to increase costs
Property Valuation Relevance • Waunakee has average property value when compared to statewide averages • Previously was above threshold for tertiary guarantee • Recently dipped below, despite inclusion of increased affluent neighborhoods • Currently gaining dollars in tertiary formula • Value per member dip due to a few factors • Decreasing home values • Lack of large business expansion actually keeps valuation down (and general aid up) • Membership is growing faster than property valuation (this trend began in 2009-2010) • Growing areas reflect higher property values • Valuation will increase once dwellings in new neighborhoods are completed (Bishop’s Bay) • As valuation increases, district will lose dollars at tertiary level (property tax increase will make up difference if spending patterns remain constant), unless enrollment growth keeps pace
Property Valuation Challenges • Property values have not increased significantly in recent years • Many properties have decreased in value (similar to rest of state) • The same amount or less dollars coming in from property taxes • Property tax levy increases the tax rate for property owners • Increased taxes can drive down values
Equalization Aid Relevance • For the most part, equalization aid has consistently increased from year to year • Recently, the percentage of dollars received from the state is decreasing, while dollars received as a percentage of aid through property tax, is increasing • Equalized aid, as a percentage of revenue, has decreased over the past decade (see the next slide for an illustration)
Revenues (General State Aid versus property tax) **More dollars for schools are coming from tax versus state aid over the past eight years**
Equalization Aid Challenges • Increased reliance on property tax levy versus funding from state causes concerns from local taxpayers • Equalized rates have increased, despite equalized values remaining stagnant (see property valuation section) • This leads to taxpayers paying more in local property taxes • Discourages taxpayers in local communities
Revenue limit relevance • It is apparent that the district levies to the limit • Due to steady enrollment increases, revenue limit has increased in this district • Saw dip in revenue limit in 2011-2012 due to WI Act 10 (this put us at 2008-2009 levels) • Treat this as an anomaly • If enrollment continues to increase (as expected), revenue limit will continue to increase as well • Increase in limit is significantly lower in more recent years, versus years prior (statewide) • Assume we will be back to 2009-2010 levels in the 12-13 year
Revenue Limit Challenges • Increases in revenue cap do not keep pace with increased costs • Increase cap at more significant rate? • Where does the funding come from? • Shared costs in 2011-2012 increased by 3.4%, however equalization aid decreased by 10% • Dollars were recouped by altering pension and health insurance contributions • Difficult to plan when revenue limit increase is unstable • Fiscal uncertainty makes it difficult to budget for raises, increased health insurance costs, etc.
Levy relevance • Able to keep levy increases low the past couple of years due to debt refinancing and lower revenue limit increases • The year 2000 saw a big decrease in the levy due to the creation of a full day Kindergarten • Fall 2006 required higher levy due to referendum approval • Steady increase in levy after 2006 • Currently: • Due to a moderate increase in state equalization aid for the 2013-14 school year, the revenue cap formula requires a property tax levy increase. • In an effort to limit the increase of the property tax levy, the School Board approved a debt refinancing in the spring of 2013. • The property tax levy for 2013-14 increases by 1.97%.
Levy challenges • Increased levies provide challenges for local taxpayers • Increased levies make it difficult to pass future referendums • Increased levies discourage community financial support
District financial health • Increasing enrollment is essential to district success due to stabilized/decreasing property valuations • Increased state aid (due to increased membership) will help offset costs (facilities, increased staff, etc.) associated with growth • Levy should remain fairly consistent with prior years • Do not expect a big change in property valuation • Referendum • Schools nearing capacity (Intermediate and Prairie currently at or over capacity) • Important to keep community support high with referendum on the horizon • Overall, Waunakee is in solid financial shape • Due to careful long-term planning • Due to continued community growth
