By: Cathy Cramer, Director of Business Services
Fall has
arrived and we are already a month into the school year – a school year that
started with a lot of “new” things: the opening of a new elementary school, ongoing
construction of the new secondary building, an updated leadership organizational
structure, a new website, and a new
mission statement. I have found the start of a school
year, with the enthusiasm and energy it presents, to be a unique characteristic
of working in the business of education, and one of my favorite times of the
year.
This
time of year is also one of the busiest in the Business Office. Office staff are busy issuing orders for
supplies, the work of the annual audit and closing out of the 2015-16 school
year is complete, and the preliminary 2016-17 budget prepared. The activities that occur between the third
Friday in September and end of October will determine what will ultimately be
included in the adopted 2016-17 budget. These include compiling the
third Friday pupil count and the district’s revenue limit calculation, DPI’s
certification of state aid to be received, the review and update of the plans
for the allocation of the resources for school operations, and preparing the
tax levy to be certified by the School Board.
Because
the primary sources of revenue for school districts are state aid and local
property taxes, these amounts—along with school budget information—will be
reported out across the state. Recent
headlines in the Milwaukee Journal Sentinel have highlighted the
unfunded financial obligations of several local governments, including school
districts. Since these reports often generate
questions from community members, I think it is important to relay some
background on the Oak Creek-Franklin Joint School District’s finances.
The district has
been recognized for its solid fiscal position and has been able to maintain
programs, increase staff, open a new elementary school, and plan to operate a
new secondary school within its available funding sources. In its most recent bond rating (Aa2) report,
Moody’s Investors Service highlighted the district’s modest pension
liabilities, its ability to adjust expenditures to match changes in revenues,
and its favorable reserves that avoid the need to borrow funds for operations, (unlike
most other school districts), as the main factors in recognizing the district’s
sound financial operations.
The district has
effectively managed the voter approved debt it has incurred for the renovation
of the High School, and the construction of Deerfield Elementary School and the
new East Middle School. By taking
advantage of the favorable interest rate environment and refinancing some of
the debt for these projects (total of approximately $36 million), over $2
million in taxpayer savings have been realized.
All of the district’s outstanding debt is at a fixed rate, and nearly
half of it is planned to be retired in ten years. The most recently approved referendum for the
new elementary and secondary buildings was projected to cost approximately $77
on a $100,000 home. Not only are the
actual debt costs less than $64 on a $100,000 home, but both projects are
anticipated to come in under budget. Any
unspent building funds have to be used to offset debt and will result in
additional savings to taxpayers.
While many
government entities are experiencing financial difficulty, this District has
been able to preserve its strong financial position. It has done so with one of the lowest
costs/pupil and lowest tax rates in southeastern Wisconsin. As you read about other districts’ budgets
and financial obligations, I hope you know, without a doubt, that due to the
School Board’s actions related to its debt service, its capital project and
facility planning processes, and a conservative budgeting approach, your school
district is not only working "to engage, challenge and inspire every student every
day", but is also effectively managing the resources it receives to do so.
It has been a pleasure to have
served as the Director of Business Services here for the past 12 years and to
have had the opportunity to get to know the many dedicated staff and community
members that make this a great school district—and the best place for me to
have been able to begin and end my career in public education.
