PMA Financial Planning Program Greg Kubitz, Sr. … · PMA Financial Planning Program Greg Kubitz,...

Integrity. Commitment. Performance.™

PMA Financial Planning Program

Greg Kubitz, Sr. Financial Consultant

PMA Securities, Inc.

PMA Financial Network, Inc.

May 19, 2014

Byron CUSD #226

Integrity. Commitment. Performance.™2Data & Assumptions provided by District

PMA Financial Planning Program| Byron CUSD #226

Financial Planning Program

Process

• What is the Financial Planning Program (FPP)?

� A comprehensive, interactive planning process that can be dynamically updated to assist the District in making important financial decisions.

• How we use the plan:

� Budget Planning

� Trend Analysis

� Set Fiscal Policies

� Scenario Analysis

� Annual Update and Reassessment



Financial Planning Program

Data Elements

• Five Years of Audited Annual Financial Reports

• FY2014 Budget

• Tax Levy / Extensions / Maximum Tax Rate

• Equalized Assessed Valuation

• Enrollment

• Staffing Ratios

• Compensation and Benefits Provided

• District Assumptions



Revenues by Source

Operating Funds – Education, Operations & Maintenance, Transportation, Illinois Municipal Retirement Fund, Working Cash, and Tort Funds

FY 2014 Budget

Revenue by Source – Operating Funds Budget Total = $23,891,443



Local Revenue: Tax Base Assumptions



• Local Revenue

� Interest Income• Rates remain at Historic Lows

• Was once a significant piece of the budget

� Corporate Personal Property Replacement Taxes (CPPRT)• FY15 Based on IL Dept of Revenue Estimate

• No change going forward

� Fees/Other Local• Food Service/Activity Fees tied to enrollment

Key Revenue Assumptions



• General State Aid (GSA)� Based on Enrollment (Average Daily Attendance) and Available Local

Resources

� Foundation Level : $6,119

• As a Flat Grant District ($218/ADA), Foundation Level impact is minimal

• FY2014 Proration: 89%, FY2015-2019 Proration: 85%

• State Mandated Categoricals� No change from FY14 Budgeted Levels

� Slight Increase projected in FY15 for Transportation based on ISBE Payment schedule, then no change

• Federal Revenue� No change from FY14 Budgeted Levels

Key Revenue Assumptions



General State Aid



Expenditures by Object

Operating Funds – Education, Operations & Maintenance, Transportation, Illinois Municipal Retirement Fund, Working Cash, and Tort Funds

FY 2014 Budget

Expenditures by Object – Operating Funds Budget Total = $23,195,462



• Salaries

� Teachers

• Current contract through FY2014

• Future years to be negotiated

� Staffing Reductions

• Health Benefits • FY2015: 3.5% decrease

• FY2016-FY2019: 2.5% annual increases

• Other Expenses

� Held Flat from FY14 Budgeted Levels

� Cost Reductions built in for FY15:

• Ed Fund Supplies & Materials: $190,000

• O&M Fund Capital Outlay: $80,000

� Termination Benefits tied to Retirees

Key Expenditure Assumptions



Enrollment Assumptions



Staffing Assumptions

• K – 12 Enrollment Projections

� Declining enrollment

• Certified Staffing Projections

Retirees replaced on the salary schedule at BA+16, Step 2 ~ $44,900 + benefits

FTE Retirees

New Hires

(Reductions):

FY - 2014 139.50 2.00

FY - 2015 134.00 2.00 (3.50)

FY - 2016 134.00 3.00 2.00

FY - 2017 134.00 3.00 3.00

FY - 2018 134.00 0.00 3.00

FY - 2019 134.00 0.00 0.00



Aggregate Revenue and Expenditure Projections

BUDGET

FY 2014 FY 2015 % chg FY 2016 % chg FY 2017 % chg FY 2018 % chg FY 2019 % chg

REVENUE

Local $21,935,715 $22,334,839 1.82% $22,340,422 0.02% $22,381,116 0.18% $22,416,899 0.16% $22,445,644 0.13%

State $1,269,109 $1,323,111 4.26% $1,321,704 -0.11% $1,316,560 -0.39% $1,310,356 -0.47% $1,305,990 -0.33%

Federal $686,619 $686,619 0.00% $686,619 0.00% $686,619 0.00% $686,619 0.00% $686,619 0.00%

Other $0 $0 $0 $0 $0 $0

TOTAL REVENUE $23,891,443 $24,344,569 1.90% $24,348,745 0.02% $24,384,296 0.15% $24,413,874 0.12% $24,438,253 0.10%

EXPENDITURES

Salary and Benefit Costs $18,085,756 $17,859,362 -1.25% $18,172,145 1.75% $18,384,216 1.17% $18,676,698 1.59% $19,077,241 2.14%

Other $5,109,706 $4,803,805 -5.99% $4,847,916 0.92% $4,851,802 0.08% $4,765,065 -1.79% $4,769,147 0.09%

TOTAL EXPENDITURES $23,195,462 $22,663,167 -2.29% $23,020,061 1.57% $23,236,018 0.94% $23,441,763 0.89% $23,846,389 1.73%

SURPLUS / DEFICIT $695,981 $1,681,402 $1,328,684 $1,148,278 $972,111 $591,865

OTHER FINANCING SOURCES/USES

Transfer Among Funds (Net) ($1,168,200) ($1,173,975) ($1,175,750) ($1,177,524) ($1,178,299) ($1,180,074)

Sale of Bonds $0 $0 $0 $0 $0 $0

Other Financing Sources $0 $0 $0 $0 $0 $0

Other Financing Uses $0 $0 $0 $0 $0 $0

TOTAL OTHER FIN. SOURCES/USES ($1,168,200) ($1,173,975) ($1,175,750) ($1,177,524) ($1,178,299) ($1,180,074)

SURPLUS / DEFICIT INCL. OTHER FIN. SOURCES ($472,219) $507,427 $152,935 ($29,246) ($206,188) ($588,209)

BEGINNING FUND BALANCE $8,821,714 $8,349,495 $8,856,922 $9,009,857 $8,980,610 $8,774,422

PROJECTED YEAR END BALANCE $8,349,495 $8,856,922 $9,009,857 $8,980,610 $8,774,422 $8,186,213

FUND BALANCE AS % OF EXPENDITURES 36.00% 39.08% 39.14% 38.65% 37.43% 34.33%

FUND BALANCE AS # OF MONTHS OF EXPEND. 4.32 4.69 4.70 4.64 4.49 4.12

REVENUE / EXPENDITURE PROJECTIONS



Aggregate Revenue and Expenditure Projections



Eleven Year Perspective



State Financial Profile Score



Copyright 2014 PMA Financial Network, Inc.

The information contained herein is solely intended to suggest/discuss potentially applicable financing applications and is not intended to be a specific

buy/sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a definitive written

agreement.

The analysis or information presented herein is based upon hypothetical projections and/or past performance that have certain limitations. No

representation is made that it is accurate or complete or that any results indicated will be achieved. In no way is past performance indicative of future

results. Changes to any prices, levels, or assumptions contained herein may have a material impact on results. Any estimates or assumptions contained

herein represent our best judgment as of the date indicated and are subject to change without notice. Examples are merely representative and are not

meant to be all-inclusive.

The information set forth herein was gathered from sources which we believe, but do not guarantee, to be accurate. Neither the information, nor any

options expressed, constitute a solicitation by us for purposes of sale or purchase of any securities or commodities. Investment/financing decisions by

market participants should not be based on this information.

You should consider certain economic risks (and other legal, tax, and accounting consequences) prior to entering into any type of transaction with PMA

Securities, Inc. or PMA Financial Network, Inc. It is imperative that any prospective client perform its own research and due diligence, independent of us

or our affiliates, to determine suitability of the proposed transaction with respect to the aforementioned potential economic risks and legal, tax, and

accounting consequences. Our analyses are not and do not purport to be appraisals of the assets, or business of the District or any other entity. PMA

makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax, or accounting effects of

consummating a transaction. PMA cannot be relied upon to provide legal, tax, or accounting advice. You should seek out independent and qualified

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