Warsaw School Board Discusses Transportation Fund
July 28, 2016 at 4:25 p.m.
An appeal to the Indiana Department of Local Government Finance will help with Warsaw School Corp.'s 2007 transportation fund if it is approved.
The fund and appeal were part of the Warsaw School Board's discussion on the 2007 proposed budget Tuesday night.
Warsaw's transportation fund currently is underfunded, according to Chief Financial Officer Kevin Scott, and the corporation is using its cash balance to fund it. If the appeal is not approved, by mid- to late-2007, the transportation fund may have to be supplemented by the general fund.
Scott said prior to his joining Warsaw School Corp., the state capped the maximum levy for the transportation fund so when the assessed valuation went down not enough money was brought in and that created a lower new threshold for the fund. The fund can only increase by the inflation factor the state allows. Before the state capped the levy, Warsaw Schools was at the maximum levy. The appeal asks the state to restore that drop in the levy and correct the error.
"We're asking for more dollars because the fuel cost is going up," Scott said during the meeting.
The estimated 2007 transportation fund was advertised at $2,782,368, a 14.8 percent increase over 2006's transportation fund of $2,423,260.
The bus replacement fund drops 4.8 percent to $661,500 for the proposed 2007 budget. The 2006 bus replacement fund was $694,575.
For the general fund, the proposed amount is $39,502,961, a 3.9 percent increase over $38,003,027 in 2006. In the general fund, Scott said pay and benefits remain around 92 percent of the budget. The electric is up some and gas has risen dramatically.
The budget is partly driven by enrollment figures, and the official school count day is Sept. 15. Scott said Warsaw will have more than 300 students compared to last school year.
Debt service will drop 0.7 percent from $4,418,979 in 2006 to the estimated 2007 figure of $4,388,592. Retirement debt, however, increases 0.3 percent to $543,330 from the 2006 amount of $541,555.
A rundown of Warsaw's debt service payments also was provided. The high school refinancing will be paid on through 2011. In 2007-2010, payments of about $2.5 million will be made. In 2011, the final payment on the refinancing will be made for $1.253 million.
From 2007 to 2010, payments from the debt service to the multi-school building corporation will be made for $1.5 million each year. In 2011, the payment jumps to $2.192 million and to about $3.5 million in 2012. Payments will be paid through 2022.
School board candidate Brad Hagg asked why the multi-school building corporation payments jumped in 2011. Scott said the school corporation didn't pay on interest for them until then.
The pension debt service will be paid off in 2019.
The second highest percentage increase is for capital projects, which is estimated for 2007 at $8,381,689, a 7.4 percent increase from 2006's $7,805,921. The 2007 capital projects fund includes an increase of $200,000 for classroom furniture replacement and $300,000 to finish furnishing the high school project. Money also will be used from CPF for utility costs for at least the 2007 year. After 2007, it is uncertain whether schools will be able to pay utilities partially out of CPF or if it all will have to be paid from the general fund.
Hagg asked if a committee looked at reducing the school corporation's utility costs. Scott replied Warsaw belongs to a co-op that works to lower its costs but they are still expensive. At the end of the meeting, the school board also talked about the high school turning off lights not in use and the football field lights and parking lot lights being off when not in use.
The preschool fund will decrease 0.2 percent to $345,204 in 2007 from the $345,769 set in 2006.
The total proposed 2007 budget is $56,605,644, an increase of $2,372,558 (4.4 percent) over the 2006 budget ($54,233,086).
Scott told the board, "Schools historically will advertise a rate that is high because Indiana is a one-way street." If the corporation advertises a low rate, the corporation may short itself on funding. The rates were advertised higher than they actually will be. The Department of Local Government Finance will work the budget and notify the school corporation of the final budget in February.
Scott also provided the board with a rate history. For the 2003-06 budgets, the total tax rate was under an estimated $1.30. The advertised 2006 total rate was $2.4754, and the 2007 advertised rate at $2.5166.
He also compared Warsaw's rate to area school corporations' rates in 2005: Goshen, $2.1313; East Noble, $1.5569; Wa-Nee, $1.6098; Southwest Allen, $1.6842; and Whitley, $1.6261. In 2005, Warsaw's was lower than those compared.
In his final thoughts, Scott said, "I think everyone in this room is getting pretty used to me being a conservative guy. I'm pretty tight with numbers."
The proposed 2007 will be approved at the school board's Sept. 18 regular meeting. The state requires school corporations to approve their budgets by Sept. 20. Board members present Tuesday included Ron Yeiter, Dan Robinson, Gene England, Deb Wiggins, Tammy Dalton and Cathy Folk. Not present was Chuck Sauders. [[In-content Ad]]
An appeal to the Indiana Department of Local Government Finance will help with Warsaw School Corp.'s 2007 transportation fund if it is approved.
The fund and appeal were part of the Warsaw School Board's discussion on the 2007 proposed budget Tuesday night.
Warsaw's transportation fund currently is underfunded, according to Chief Financial Officer Kevin Scott, and the corporation is using its cash balance to fund it. If the appeal is not approved, by mid- to late-2007, the transportation fund may have to be supplemented by the general fund.
Scott said prior to his joining Warsaw School Corp., the state capped the maximum levy for the transportation fund so when the assessed valuation went down not enough money was brought in and that created a lower new threshold for the fund. The fund can only increase by the inflation factor the state allows. Before the state capped the levy, Warsaw Schools was at the maximum levy. The appeal asks the state to restore that drop in the levy and correct the error.
"We're asking for more dollars because the fuel cost is going up," Scott said during the meeting.
The estimated 2007 transportation fund was advertised at $2,782,368, a 14.8 percent increase over 2006's transportation fund of $2,423,260.
The bus replacement fund drops 4.8 percent to $661,500 for the proposed 2007 budget. The 2006 bus replacement fund was $694,575.
For the general fund, the proposed amount is $39,502,961, a 3.9 percent increase over $38,003,027 in 2006. In the general fund, Scott said pay and benefits remain around 92 percent of the budget. The electric is up some and gas has risen dramatically.
The budget is partly driven by enrollment figures, and the official school count day is Sept. 15. Scott said Warsaw will have more than 300 students compared to last school year.
Debt service will drop 0.7 percent from $4,418,979 in 2006 to the estimated 2007 figure of $4,388,592. Retirement debt, however, increases 0.3 percent to $543,330 from the 2006 amount of $541,555.
A rundown of Warsaw's debt service payments also was provided. The high school refinancing will be paid on through 2011. In 2007-2010, payments of about $2.5 million will be made. In 2011, the final payment on the refinancing will be made for $1.253 million.
From 2007 to 2010, payments from the debt service to the multi-school building corporation will be made for $1.5 million each year. In 2011, the payment jumps to $2.192 million and to about $3.5 million in 2012. Payments will be paid through 2022.
School board candidate Brad Hagg asked why the multi-school building corporation payments jumped in 2011. Scott said the school corporation didn't pay on interest for them until then.
The pension debt service will be paid off in 2019.
The second highest percentage increase is for capital projects, which is estimated for 2007 at $8,381,689, a 7.4 percent increase from 2006's $7,805,921. The 2007 capital projects fund includes an increase of $200,000 for classroom furniture replacement and $300,000 to finish furnishing the high school project. Money also will be used from CPF for utility costs for at least the 2007 year. After 2007, it is uncertain whether schools will be able to pay utilities partially out of CPF or if it all will have to be paid from the general fund.
Hagg asked if a committee looked at reducing the school corporation's utility costs. Scott replied Warsaw belongs to a co-op that works to lower its costs but they are still expensive. At the end of the meeting, the school board also talked about the high school turning off lights not in use and the football field lights and parking lot lights being off when not in use.
The preschool fund will decrease 0.2 percent to $345,204 in 2007 from the $345,769 set in 2006.
The total proposed 2007 budget is $56,605,644, an increase of $2,372,558 (4.4 percent) over the 2006 budget ($54,233,086).
Scott told the board, "Schools historically will advertise a rate that is high because Indiana is a one-way street." If the corporation advertises a low rate, the corporation may short itself on funding. The rates were advertised higher than they actually will be. The Department of Local Government Finance will work the budget and notify the school corporation of the final budget in February.
Scott also provided the board with a rate history. For the 2003-06 budgets, the total tax rate was under an estimated $1.30. The advertised 2006 total rate was $2.4754, and the 2007 advertised rate at $2.5166.
He also compared Warsaw's rate to area school corporations' rates in 2005: Goshen, $2.1313; East Noble, $1.5569; Wa-Nee, $1.6098; Southwest Allen, $1.6842; and Whitley, $1.6261. In 2005, Warsaw's was lower than those compared.
In his final thoughts, Scott said, "I think everyone in this room is getting pretty used to me being a conservative guy. I'm pretty tight with numbers."
The proposed 2007 will be approved at the school board's Sept. 18 regular meeting. The state requires school corporations to approve their budgets by Sept. 20. Board members present Tuesday included Ron Yeiter, Dan Robinson, Gene England, Deb Wiggins, Tammy Dalton and Cathy Folk. Not present was Chuck Sauders. [[In-content Ad]]