HomeMy WebLinkAbout20052876.tiff St. _V. r ' Malley
School District
August 31, 2005
Honorable Commissioner Jerke
Weld County Centennial Center
915 10th St.
Greeley, CO 80632
Dear Commissioner Jerke:
The St. Vrain Valley Board of Education knows that the health of the school district is important
to you and your constituents. In an effort to keep you informed about the District, the first
edition of the Financial Report to the Community is enclosed for your review. This report
highlights many facets of the District's financial condition. As an elected official you may be
particularly interested in the District's approach to ongoing financial accountability, the 2005-06
General Fund Budget, and the independent audit results.
The Board encourages you to review this report thoroughly and welcomes any questions you
may have about its content.
Sincerely,
Sandr Searls
President
Board of Education
395 South Pratt Parkway • Longmont• CO • 80501
2005-2876
. Oq '0.2-62 ~O5r
e
"it - . lit Afr)
A • M
Fil
1• 4
r , * it ;et vrithi / •
* x
t ,
fri i 0 •
wage
ic, t‘ i) 4 V ill
11 it i LI
i 4 . .
St. Vrain Valley
School District
♦ ._1;;t::: s
! ;fttNt#f
ift 1 4
4
.' .' ,.�i.' T il li i Y i I
fit ."t ., _ff...si X Intl : }�,� ~. ,
"A4 �" qty � k . 4 r „�.
tin,ilfr, A it 0-'ViILi'ii(iifiiillM
Ii T' Y • - ih y+Mer�J.0 4,,, .} ( ) '14.-17-•.Wk mas 4,, ; aya .",,,,Y z !i tit
itsy h ; : ftiv
4 1 ¢ ivir
,., i 1 c t oft aR. ic ... z ti,
Y Y a " { t 4�'"*,q'"' ti >a_,i}« it.,:
. {, r
l
y �y 1 w
A message from the Superintendent and the
f School Board
-•! Dear Community Members:
As part of our school district's continuous improvement
efforts to provide sound financial stewardship, we are
publishing our first annual Financial Report to the
Community. As with other areas of accountability in
education today, we believe it is our responsibility to
provide you with a clear and concise overview of all
financial information. This report is intended to provide
financial facts, funding resources, goals and
accomplishments, the actions taken to improve
accountability and public oversight, and a 2005-06
Budget summary.
The Board and District leadership recognize that the
public needs to be fully informed about how their tax
Mission dollars are being spent. To meet financial challenges of
The mission of the the past, we have increased oversight and financial
reporting standards, strengthened internal and external
St. Vrain Valley School District
controls, aligned the annual budget with the District
is to educate each student strategic plan and state statutes, prioritized funding and
in a safe learning environment provided opportunities for District-wide community input.
so that they may develop
to their highest potential On behalf of the Board, District leadership and all of the
and become employees in the St. Vrain Valley School District, we
want to thank you for your continued support and
Contributing citizens.
feedback. We are dedicated to establishing St. Vrain as a
school district known for quality, in both our education
practices and business operations.
Sincerely,
Randy Zila Sandra Searls
Superintendent President
For more information about Board of Education
St. Vrain Valley Schools
visit our website homepage at
www.stvrain.kl2.co.us or call the
Department of Public Information
303-682-7213.
The St. Vrain Valley School District RE-IJ is an equal opportunity educational
institution and does not discriminate on the basis of race,color, religion,sex, national
origin,age or disability in its educational programs,activities or employment.
Financial Accountability is a Partnership Financial Accomplishments
The District, the Board of Education 2003 - 2005
and the Community
The Board of Education has the ultimate responsibility for the Highly Qualified Financial Services Staff
financial well-being of the District. In 2002, the Boaffl authorized the Since mid-2003, Chief Financial Officer
hiring of a highly qualified financial staff and engaged both District Mark Pillmore and District Accountant Jane
staff and community members to assist in overseeing various portions Schein, both CPAs, have provided
of the District's financial processes. The committees and activities accounting expertise to the District.
currently in place to review, report on and improve the level of
financial accountability are listed below. In addition, the Improvement in General Fund Balance
Superintendent also sponsors a number of advisory committees where Since June 2003, the fund balance deficit
the financial health of the District is routinely discussed. has been improved by approximately$12.6
million.
Monthly Financial Review -Established 2003 Higher Return on Investments Effective
On the fourth Thursday of each month, the financial status of all investment of available cash has resulted in
District funds, including variances, cash flow, state loans and over $500,000 in additional revenue in
investments, is presented to the public and news media during a 2004-05.
Board work session. This information is available in printed format
from the Public Information Department and in electronic format on Increased Revenues & Reduced Expenses
the District's website following the monthly work session. Without impacting taxpayers, increased
revenues have resulted from an additional
Finance and Audit Committee -Established 2003 $2.7 million distribution from a self-
This community advisory team, made up of private citizens with insurance pool and $847,000 from the sale
financial backgrounds, meets twice a month to provide independent of the Creekside school site. Expenses have
oversight for the District's financial reporting process, the internal been reduced by $150,000 annually from the
control systems and the annual independent audit of the District. The installation of a District-wide telephone
committee's focus is on both District-level and school-level financial system and by $200,000 for federal E-rate
accountability. reimbursements of computer-related costs.
Chair: Debi Edwards, CPA, Jensen, Burcham, Stelmack, Edwards
Improved Credit Ratings In March 2005,
Community Budget Advisory Committee - both Moody's Investors Service and
Established 2004 Standard and Poor's raised their respective
This citizens committee meets regularly and has participated in the credit ratings for the District. The reasons
development of an annual District-wide budget process that is based cited for this upgrade were strong financial
on strategic plan priorities and includes a supporting process that is management, continuous reporting on
participative and understandable. This committee was particularly budget performance, and the dramatic
active in the development of the 2005-06 operating budget. turnaround of the fund balance.
Chair: Greg Warson, Director of Finance, Sun Microsystems
Taxpayer Savings from Refunding Bonds
Community Budget Reviews -Beginning 2004 In May 2005, approximately $42.8 million
Following the timeline outlined in the newly developed Budget in refunding bonds were sold at an average
Guidance Manual, Chief Financial Officer Mark Pillmore, together rate of 4.07%. This refunding will reduce
with the Community Budget Advisory Committee, held a public future bond payments by $2.7 million, a
budget review meeting in March 2005 and another in April. During significant savings to taxpayers in the years
these meetings, Pillmore reviewed the District's financial data and 2005 to 2017.
provided an opportunity for citizens to review the proposed 2005-06 Certificates of Achievement
budget and provide input to the budgeting process. In May 2005, the Government Finance
Officers' Association awarded the District
Community Bond Review Committee -
Established 2003 its Certificate of Achievement for excellence
in governmental accounting and financial
This committee, made up of citizens representing each of the high reporting. In July,the Association of School
school area feeder systems, meets monthly. Many of the current Business Officials International also
members were also involved with the development of the November awarded a similar certificate. The District's
2002 bond package. These citizens provide thorough oversight of the attainment of these recognitions represents a
dollars and building projects included in the 2002 school bond. significant accomplishment in meeting high
Chair: Debbie Lammers, Citizen and Niwot Parent standards of financial management.
r
General Fund Operating Budget
How Schools Are Funded for 2005-06
Every homeowner and business owner in Colorado pays property Charter Capital
taxes for schools, along with taxes for other public services. Each Purchased Schools Outlay&
Services
year, the budget crafted by the Governor and the legislature 4.5%
Other
5.6% 1.1%
determines how much of the state's total budget is allocated to
education. The portion allocated for K-12 education is then divided
among 178 school districts throughout the state using the state's Supplies&
School Finance Act funding formulas. These formulas determine Materials
how much money each district will receive per pupil per year as well 7.9 Salaries&
as how much of that funding is paid by the state and how much is Benefits
paid through local taxes. Currently, the state pays an average of 80.8%
about 60 percent of the funding for local school districts, with 40
percent coming from local taxes. Based on the funding allocation
from the state, each school district decides how to fund its local
system. How Our Money is Spent
The St. Vrain Valley School District's
For 2005-06 budgeting purposes, the funding formula resulted in a annual General Fund operating budget is
total of $6,042 per pupil revenue for St. Vrain Valley schools, used to teach students, to purchase textbooks
including the additional Amendment 23 funding. From this amount, and other classroom supplies, for student
$271 is required to be transferred to the Capital Reserve and Risk transportation, and to maintain school
Management Funds. leaving $5,771 per pupil revenue or buildings and grounds. It funds special
approximately $122.7 million in General Fund operating funds. education programs, school-based focus
Other General Fund revenue sources total about $9.7 million, for a programs, charter schools and programs for
total of$132.4 million. students for whom English is a second
language. It is used to pay salaries for
Colorado law allows local school districts to ask voters to approve teachers and other staff, provide health and
additional operational funding for their district through local tax retirement benefits and support additional
increases called mill levy overrides. This additional funding is capped ongoing professional training.
j.. by state law. All override revenues come from increased property
G taxes. A district's authorization to raise and expend override
revenues does not affect the amount of state funding the district
receives. The St. Vram Valley School District does not have a voter- • I
approved override at this time.
` b
How St.Vrain Schools Are Funded it a i
ry Prima Sources for the 2005-06 t Out of Every Tax Dollar °
x�
General Fund Budget 4
Local * 82¢ is used for direct instruction and .
Property { classroom support. These funds will be
Taxes 4 used for such expenditures as classroom P
36% • teachers and aides, textbooks and A
t
supplies, librarians, counselors, school
State / Local f
Income, 3 principals and extra curricular activities. p
—ill
Specificti i
Sales &Use Use Tax T
Taxes r
5% 16¢ is spent on school operations, 4
I
5R'� Other Local fs including transportation, utilities,
Revenue I 0 maintenance, custodial services,
`"
1% # printing,purchasing and technology. .. ,
L
Source: Superintendent's 2006 Fiscal Year Budget, r a 20 is used for District-wide services I 1
i Adopted June 8, 2005 at www.stvrain.kl2.co.us 7 such as human resources, payroll and r ':4
other financial services, legal services,
In addition, more information on the District's finances can be found clerical support, public information, el
in the "Official Statement" prepared for the issuance of bonds in supervision of instruction and the u.
Spring 2005. More information on school finances in general can be superintendent's office. I;
found on the Department of Education's website www.cde.state.co.us
in the document entitled "Understanding Colorado School Finance p- - _ - . ,.
y
and Categorical Program Funding. • -y- • ''�.a -'r 1. ,.....,�!
1
Annual General Fund Operating Budget
The General Fund operating budget is comprised of dollars that are How Our Money Is Spent
used to cover the day-to-day expenses of the District. Expenditures in the 2005-06
General Fund Budget
Building Central
General Fund Budget for Staff and Opckations Support
Support
Fiscal Year 05-06-Adopted 16.4% 1.7'
Full-time
Equivalent %)of
(FTE) Dollars Total /
Classroom Direct
Support Instruction
Direct Instruction-Teaching 1,320 $81,450,000 64.7% 17.2% 64.7%
(classroom teachers,
special education and English as
a Second Language teachers,
teacher's aides,textbooks,supplies)
Salaries & Benefits make up a
704 significant portion of the District's operating
Classroom Support(librarians, 569 $2 1,704.000 17.2%
ans, budget, with nearly 69% of the total going
counselors,school principals and
assistant principals,support staff such toward direct instruction.
as speech services,attendance,
extra-curricular activities,etc.) General Fund Operating Budge(
Ibr 2005-06
Building Support 264 $20,635,000 16.4% Salary and Benefits Breakdown
(student transportation,utilities.
Ccnlral
maintenance,custodial services, Building Support
Support pp"
printing,purchasing,technology
118%
services,etc.)
Central Support/Administration 81 $2,086,000 1.7% classoom
(human resources,finance,payroll,budgeting Support .
legal,clerical support,supervision of instruction, 18 4% Direct
Instniet ion
public information,superintendent's office,eta) 68.7%
Sub-Total 2,234 $125,875,000 100.0%
Charter Schools $5,994,000
Total 2005-06 General Fund $131,869,000
Operating Expenditures
For the 2005-06 school year, the District is
estimating that there will be 21,253 students,
which is an increase of 529 students or 2.5%
St. Vrain Valley School District over the previous year. The number of full
Per Pupil Operating Revenue (PPOR) time students times the per pupil operating
01-02 02-03 03-04 04-05 05-06 revenue (PPOR) provides over 94% of the
budgeted revenue.
Total Per $5,215 $5,676 $5,818 55,957 $6,042 The PPOR figures in the adjacent table are
Pupil Revenue
the total amounts provided by the state
funding formula for each student. In reality
Less: Transfer to Capital Reserve&Risk Management every child is different, with different needs
$248 S260 $262 $268 $271 and different demands on the school system.
Some expenses are targeted to specific
Equals: Per Pupil Operating Revenue groups of students such as special needs
54,967 $5,416 $5,556 55.689 $5,771 students, gifted students or students learning
English as a second language. As a result,
Increase in PPOR 3.6% 9.0% 2.6% 2.6% 1.4% the actual expenditures for a specific student
may vary from the figures listed.
Other Funds Financial Budget Goals and
In addition to the General Fund expenditures of $132 Challenges
million, the District manages a number of other funds, 2005-06 School Year
which total approximately $181 million. Examples of
these funds are described below. In March 2005, the Board of Education set the following
operating budget expenditure priorities:
Dedicated Revenue Funds such as the Colorado • Improve employee compensation to remain
Preschool Program or the Student Scholarship Fund, are competitive in the marketplace
directed to schools to support students for specifically • Fund current year statutory requirements for
identified reasons. instructional supplies and materials and increase this
funding, if possible
Bond Redemption Fund is made up of dedicated local • Fund the opening of 3 new schools and overall
property tax revenues, held in trust by Wells Fargo Bank, student enrollment increases during the upcoming
that are used to pay the principal and interest year
commitments resulting from voter-approved capital • Provide funding for critical professional development
school bond sales. activities
• Improve the General Fund ending balance by at least
Capital Reserve and Risk Management Funds contain $500,000
the $271 per student transferred from total state funding • Minimize impact of increasing student-teacher ratios
to purchase land, construct or improve facilities and to by 1.2 students,required to balance the budget.
provide liability insurance coverage.
Community Education Fund provides such activities as Full me(F )student Enrollment
Actual/Esdnmted October I Counts
I driver's education, after-school programs, community
activities and adult student programs. This fund is self-
21550 _ _
supporting as a result of participant fees. 21253
21000 20/24
Grants Fund is made up of federal, state, foundation and
other funds that have been awarded to the District for 2025020175
specific programs such as Title I (additional support for 19'+88
students in poverty), hearing impaired, special education, 1Y5f10
9212
English as a Second Language, and special projects
including student drug & alcohol prevention and safety 11798,
programs.
Food Service Fund is a self-supporting fund. St. Vrain 2X11 2102 2003 2!X14 2005
Valley schools serve 7,800 lunches each day in addition
to providing a breakfast program and ala carte items.
This program receives approximately 65% of its income
from cash sales and 35% from the Federal School Lunch 2002 School Bond Funds and Projects
and Breakfast Program. In November 2002, voters approved the issuance of
$212.9 million in bonds to build 10 new schools and to
Student Activity Fund contains funds from student upgrade, remodel and add on to existing schools and other
fundraisers, donations and gate receipts that support District facilities. To date, $156 million in bonds or 73%
school-sponsored interscholastic and intrascholastic of the total have been sold. These proceeds, which are
athletic, performing arts and other student-related events. accounted for in the Building Fund, are restricted and can
only be used for capital expenditures. They cannot be
used for general operating expenses such as salaries.
St. Vrain Valley School District
Mill Levy History Of the 61 major projects included in the 2002 Bond, 75%
are already complete or will be by the end of the summer
2005. This includes the completion of 5 of the 10 new
2001 2002 2 2004 2005
schools planned. Due to favorable construction bids on a
/. 1 number of projects, approximately $2.9 million of the
Bond Fund 10.97 9.33` 414.23 14.23 14.23 $156 million bonds are unencumbered as of June 1, 2005.
General Fund 31,21 3692 p' 26.79 26.15 25.86 A citizens Community Bond Review Committee provides
} " monthly oversight of all aspects of each individual bond
Total Levy 42.18 36.25 41.Q2 40.38 40,09 project.
District Audit Results
The District is audited annually on its financial ♦
performance and for state accreditation. The nationally �,�tiw�'"" ♦ �"
recognized independent auditing firm of Grant Thornton w
iest
LLP has provided financial audit services to thg District
since 2003. The Colorado Department of Education `C
KEW) also audits the District for compliance with the d
statutory accreditation indicators on an annual basis. 1 r �
• w
Annual Financial Audit As a result of the financial
audit by Grant Thornton in the fall of 2004, the District '
E\ :
received an unqualified clean opinion. In addition, the
auditors reported that "the District has regained financial { , , ,
stability and has made significant progress in restoring the
fund balance of the General Fund." The auditors offered District Employment and Employee
minor recommendations for improvement, which have
been incorporated. Compensation
The St. Vrain Valley School District is the largest
Accreditation Review In its June 2005 review, CDE employer in the area with over 3.000 total employees.
commended St. Vrain indicating that the"District is being This figure includes the management of approximately
used as a model across the state for districts that are 700 substitute teachers, who are generally part-time
reviewing financial practices and policies". In addition, employees.
"A significant financial milestone has been met as
supplies and materials have been fully funded (for 2004- Following a salary reduction in 2003 and a salary freeze
05 and 2005-06) at the level required in statute." CDE during the 2003-04 school year, employee salaries were
also directed the District to "continue building up the increased by 3.7% this past school year. Beginning in
general fund balance to recover from the shortfall." 2003, all employees began contributing a portion of their
health insurance. For the 2005-06 school year, employee
District Performance Audit The Superintendent has salaries will be increased by a total of 5.4%, the base
engaged Cooper and Associates, headed by Dr. Ed salary for teachers will be $30,009, and employees will
Cooper from Regis University, to review all support contribute 10%of their health insurance premium.
operations in the District. This spring, Dr. Cooper and his
team conducted a significant number of individual
employee interviews and reviewed the District's policies,
procedures, structures, etc. The results and Per Pupil Funding Comparison
recommendations from this audit will be available for 2004-05
review with the Board of Education in the fall of 2005.
Compliance with State Laws School Total Mi1a.Levy Add'!$$
Tabor Reserve(including District contingency reserve) District Revenue Override Over
Fully funded using a combination of a portion of the fund Per Pupil Portion.: St. Vrain
balance of the Risk Management Fund, and the
designation of undeveloped land as authorized by state Boulder $7,243 $1,219 $1,286
law.
Ft. Collins $4,516 a:07 $559
Instructional Supplies and Materials In addition to {Ptwdte}
fully funding the 2005-06 requirement, the operating
budget contains a carryover of $1.8 million of Loveland $6,244 $523 $287
unexpended funds from 2004-05. The unbudgeted (Thompson)
amount of 52.45 million from 2002-03 and 2003-04 are
not included due to lack of revenue to support that level Northhlenn $6,644 $741 $687
of expenditure. The Board of Education has committed to (Adams 12)
budget the additional amount as soon as revenues are
available. Jefferson $6,932 $1;007 $975
County
Transfer to Capital Reserve and Risk Management $5,957 $0
The amount required by law, $271 per student, has been St. Vraltl
transferred to these two funds. The Board determines the
division of the $271 between the two funds.
What are people saying about financial accountability in St. Vrain Valley?
i
.� _ ,, '4 • /n a February 2005 e-mail to the School Board...
"I applaud the work that has been done thus far to create
a document(the Budget Guidance Manual) that will help
more community members parents like myself
�,, understand this sometimes complicated process."
... Y1.:," .Y o• d
��� •a . 1 Maly McGraw
Parent
. l As quoted in the May 20, 2005 Daily Times-Call...
'" ,�a.- /• St. Vrain is"an example of how districts can shift
#• '+ spending priorities from administrative and other
�; ,;•� outside-the-classroom support services to classroom
"` 41 it instruction."
Joe Stengel
In the January 2005 teachers'association newsletter Republican Legislator from Littleton
'The Bridge'... Colorado State House Minority Leader
"As a taxpayer,as an employee,as an SVVEA member
on the negotiations team,and now as your vice- As quoted in the July 3, 2005 Daily Times-Call...
president, I believe that the district continues to build a "They(SVVSD)go way beyond what I see in many
body of evidence such that it cannot easily revert to its districts,and in my estimation,they do an excellent job
former habits of`business as usual'." of managing the district and their finances and keeping
their public informed."
Faythe Hanna
Teacher at Erie Elementary Michael Clough
Member of the Community Budget Advisory Committee Colorado Department of Education, Regional Manager
ivatuuedau uoRgunoJul alignd aqi Xq pags?Ignd
LAIN LSIQ 'IOOHDS A3TIVA NIIVMA '.LS
3H.L WOUI.d SIOI.LVWNO,dSII 7VI�NVNId LNV L2IOdWI
66179-10508 • OO •luowguo7
017 ON 1twiad Xem(.ted Head gpno8 56£
OJ `1uow9uoi 13u;s!Q loops
alVd AgrA UIflA .is
a9elsod 's'n �1
8�p maid-uoN
Hello