The URL can be used to link to this page

Home My WebLink AboutWestlake Academy Long-range Financial Forecast - 03102011.11Westlake Academy Long-range Financial Forecast Scenarios Based On State Public Education Funding Reductions Current Total WA Yearly Cost 3/21/2013 BOT Meeting 2 Overall Cost Summary FY 10-11 Budget Proposed Westlake Academy Budget $ 4,649,822 Estimated Town Funded Indirect Operational Costs (Support Services) 324,607 Subtotal All Operating Costs 4,973,129 Annual Debt Service Payment 1,501,778 Grand Total $ 6,476,207 WA Total Operating Expenditures 3/21/2013 Block Schedule Information Meeting 3 WA – Total Operating Expenditures Adopted Estimated Adopted Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 General Fund $ 3,709,086 $ 3,918,033 $ 4,092,899 $ 4,425,054 Special Revenue Funds 96,610 139,680 270,131 224,768 Total Governmental Funds $ 3,805,696 $ 4,057,713 $ 4,363,030 $ 4,649,822 WA Yearly – Expenditures by Object Code 3/21/2013 BOT Meeting 4 WA Yearly - Expenditures by Object Code Adopted Estimated Adopted Actual Budget Budget Budget FY 08/09 FY 09/10 FY 09/10 FY 10/11 61XX Payroll & Related Items $ 2,790,289 $ 3,090,775 $ 3,275,786 $ 3,396,643 62XX Contracted Services 553,162 488,190 444,608 641,745 63XX Supplies & Materials 252,376 252,105 305,659 258,287 64XX Other Operating 126,878 184,643 295,481 353,147 65XX Debt Service 82,990 42,000 41,496 - Total Expenditures $ 3,805,696 $ 4,057,713 $ 4,363,030 $ 4,649,822 WA Yearly Revenue Detail 3/21/2013 Block Schedule Information Meeting 5 FY 08/09 Audited FY 09/10 Adopted Budget FY 09/10 Estimated Budget FY 10/11 Adopted Budget Local & Intermediate Sources Blacksmith Apprentice Program (WAF) 394,129 $ 420,000 $ 435,095 $ 419,230 $ Gifts and Donations 20,000 - 3,000 - Investment Earnings 4,617 3,000 625 1,500 Lunchroom Revenues 6,339 8,600 - 3,000 WAF Salary Reimbursement 64,858 64,858 64,858 64,858 Local Revenue 25,341 11,000 16,388 12,000 Athletic Activities Income 32,743 48,006 44,953 51,953 Transportation & Parking - - - 32,840 Total Local & Intermediate Sources 506,248 555,464 564,919 585,381 State Revenues Foundation School Program 2,960,589 3,443,120 3,379,040 3,748,836 State Revenue (TRS and Medicare On-Behalf) 202,539 174,285 193,989 189,630 Medicare Part D On-Behalf - - 6,044 6,165 Total State Revenues 3,163,129 3,617,405 3,579,073 3,944,631 TOTAL REVENUES 3,669,377 $ 4,172,869 $ 4,143,993 $ 4,530,013 $ Total Enrollment 3/21/2013 BOT Meeting 6 0 100 200 300 400 500 600 700 FY 03/04 1-6 FY 04/05 K-7 FY 05/06 K-8 FY 06/07 K-9 FY 07/08 K-10 FY 08/09 K-11 FY 09/10 K-12 FY 10/11 K-12 FY 11/12 K-12 FY 12/13 K-12 FY 13/14 K-12 195 264 324 346 379 417 491 520 610 630 630 Models Examined •Status Quo (current enrollment & staffing) •Status Quo + 2 students per class (maintain current staffing) •Option B Expanded Block Schedule as planned •Option B Expanded Block Schedule + 2 students/class •Apply: 5%, 10%, and 15% FSP Funding Reduction to each scenario. 3/21/2013 BOT Meeting 7 −0% = $7,328 −5% = $7,040 −10% = $6,752 −15% = $6,464 Scenario Assumptions •Revenues –100% use of Blacksmith –5-15% FSP Reduction through FY12-13 –3% growth in other revenues –3% growth in FSP beginning FY13-14 •Expenditures –Salaries flat until FY 13-14 –3% growth in all other expenditures –Transfer indirect costs from Town to WA starting FY 11-12 –3% increase in salaries beginning in FY13-14 3/21/2013 BOT Meeting 8 Scenarios 3/21/2013 BOT Meeting 9 2 Ne w St u d e n t s / Cl a s s No C h a n g e Status Quo “Option B” No Change Maintain the Status Quo No Change to the Plan Implement Option B Additional Staff and Facilities Add 2 New Students/Class No Additional Staff or Facilities Implement Option B Add 2 New Students/Class Additional Staff and Facilities 1,5,9 3,7,11 2,6,10 4,8,12 Scenario 1-4 = 5% FSP Reduction Scenario 4-8 = 10% FSP Reduction Scenario 9-12 = 15% FSP Reduction Scenarios – 5% FSP Reductions 3/21/2013 BOT Meeting 10 2 Ne w St u d e n t s / Cl a s s No C h a n g e Status Quo “Option B” ~528 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~(368,005) Exp. over Rev. ~37 Operating Days ~606 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~(96,540) Exp. Over Rev. ~52 Operating Days ~577 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~24,880 Rev. over Exp. ~67 Operating Days ~663 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~358,631 Rev. over Exp. ~84 Operating Days 1 3 2 4 Scenarios – 10% FSP Reductions 3/21/2013 BOT Meeting 11 2 Ne w St u d e n t s / Cl a s s No C h a n g e Status Quo “Option B” ~528 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~(523,210) Exp. over Rev. ~25 Operating Days ~606 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~(274,674) Exp. Over Rev. ~40 Operating Days ~577 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~(144,788) Exp. over Rev. ~54 Operating Days ~663 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~163,742 Rev. over Exp. ~71 Operating Days 5 7 6 8 Scenarios – 15% FSP Reductions 3/21/2013 BOT Meeting 12 2 Ne w St u d e n t s / Cl a s s No C h a n g e Status Quo “Option B” ~528 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~(678,416) Exp. over Rev. ~13 Operating Days ~606 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~(452,808) Exp. over Rev. ~28 Operating Days ~577 Students ~45.3 Teaching Staff ~18.8 FTE Support Staff ~(314,457) Exp. over Rev. ~41 Operating Days ~663 Students ~50.3 Teaching Staff ~18.8 FTE Support Staff ~(31,147) Exp. over Rev. ~57 Operating Days 9 11 10 12 Scenario’s Conclusion •Only Scenarios 2, 4, and 8 have positive cash flow •Whether a 5%, 10%, or 15% FSP Funding Reduction, Option B + 2 new students per class (22 per class) provides the best financial outcome. •The only scenarios that positively cash flow (2, 4, and 8) require 22 students/class in grades 1 – 12. •All other scenarios require use of Fund Balance 3/21/2013 BOT Meeting 13 Fund Balance •Board Policy – “General Fund Undesignated Fund Balance – The Academy will strive to maintain the General Fund undesignated fund balance at 45 days of operation.” •Current Fund Balance = $767,490 3/21/2013 BOT Meeting 14 Fund Balance Financial Impact 3/21/2013 BOT Meeting 15 Scenario's FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Scenario 1 $ 960,388 $ 592,383 $ 88,893 $ (591,685) $ (1,300,298) $ (2,024,382) $ (2,795,400) $ (3,596,937) $ (4,485,377) $ (5,407,631) Scenario 2 960,388 985,268 874,662 577,516 262,658 (57,040) (414,498) (791,245) (1,260,210) (1,751,538) Scenario 3 960,388 863,848 861,611 696,142 516,908 336,904 142,879 (65,586) (288,924) (527,582) Scenario 4 960,388 1,319,019 1,786,327 2,083,020 2,378,402 2,685,840 2,992,471 3,298,270 3,603,212 3,907,272 Scenario 5 960,388 437,178 (221,519) (1,061,959) (1,935,230) (2,828,911) (3,773,953) (4,754,735) (5,821,479) (6,927,386) Scenario 6 960,388 815,600 535,325 63,421 (431,438) (936,536) (1,484,230) (2,056,919) (2,720,755) (3,412,800) Scenario 7 960,388 685,714 500,052 145,655 (228,174) (608,613) (1,009,084) (1,430,188) (1,872,546) (2,336,793) Scenario 8 960,388 1,124,130 1,390,728 1,480,690 1,563,140 1,651,258 1,731,989 1,805,111 1,870,395 1,927,608 Scenario 9 960,388 281,972 (531,931) (1,532,233) (2,570,161) (3,633,440) (4,752,506) (5,912,533) (7,157,580) (8,447,141) Scenario 10 960,388 645,931 195,989 (450,673) (1,125,534) (1,816,033) (2,553,962) (3,322,593) (4,181,300) (5,074,062) Scenario 11 960,388 507,580 138,493 (404,832) (973,257) (1,554,129) (2,161,046) (2,794,791) (3,456,167) (4,146,005) Scenario 12 960,388 929,241 995,130 878,361 747,879 616,676 471,506 311,951 137,578 (52,057) Other Choices: Expenditure Reduction •PYP Page - 16 –Specials art, library, and music - approximately $160,000 cost reduction –Spanish begins in Grade 2 – approximately $30,000 cost reduction •Other Page - 19 3/21/2013 BOT Meeting 16 WA Expenditures Structure •Driven by past decisions –Salary levels •Internationals’ Stipends –Staffing levels –Quality of facility materials drives maintenance costs 3/21/2013 BOT Meeting 17 Conclusions •Centrist approach •Scenario 8 makes the most sense –Allows implementation of Option B –22 students/class in G1-12 avoids use of Fund Balance and can still incurs a 10% FSP reduction –Positions us best financially from a solvency standpoint; meets BOT financial policy –Maintains educational quality with lower class size than surrounding public schools 3/21/2013 BOT Meeting 18 Discussion •Questions •Feedback •Board Direction 3/21/2013 BOT Meeting 19