HomeMy WebLinkAboutMeeting handoutExplanation & Summary of Major Budget Components
REVENUES
The revenues received by Westlake Academy are classified into one of three broad categories: Federal,
State or Local. State funding is the Academy's largest revenue source making up over 80% of revenues
from all funds. Staff estimates that the base level of total state aid paid through the Foundation School
Program (FSP) in FY 11 -12 will be $6,689 per student; approximately a 5% decrease from the FY 10 -11
levels. As an open - enrollment charter school, Westlake Academy has the ability to establish specific
class sizes and set limitations on secondary boundary enrollment. Enrollment for FY 2011 -2012 is
projected at 627 students in accordance with the current plan to attempt to maintain 20 students per
class.
Federal funding is received through grants that support special education and accounts for less than 5%
of revenues for all funds; this funding is projected to remain flat.
Local funding consists of two major sources, the Town and the Westlake Academy Foundation. As a
municipally -owned charter school Westlake Academy does not have taxing authority; the Town of
Westlake is responsible for debt service and capital improvements, these costs are estimated at
$1,498,450 for FY 11 -12. The Westlake Academy Foundation is an independent non - profit organization
that raises funds through donations and fund raising; the FY 11 -12 forecast is $1,000 per student, or
approximately $627,000.
EXPENDITURES
Compensation and benefits are the largest operating cost for Westlake Academy. The current teacher
pay scale is based on the Board policy of being within 3% of the median of the nine (9) surrounding
public school districts. Per Board direction, the salary scale will be held flat for FY 11 -12; however, some
salaries will increase according to the Step pay plan which recognizes employee tenure with small pay
increases each year. The step increase for all applicable staff equals $24,716 (approximately 1 %).
Direct and indirect operating costs previously absorbed by the Town of Westlake municipal budget have
been moved to the Academy operating budget. Direct costs totaling $243,213 were transferred in FY
10 -11 and indirect costs totaling $303,695 have been transferred in the FY 11 -12 budget. The following
table reflects these transfers with the indirect costs included in the FY 11 -12 adopted budget.
Figure 1- Overall Total Cost Summary — General Fund
Estimated Adopted
Overall Cost Summary FY 10 -11 FY 11 -12
Proposed Westlake Academy Budget $ 4,610,062 $ 5,334,446
Estimated Town Funded Indirect Operational Costs (Support Services) 324,607 -
Subtotal All Operating Costs 4,934,669 5,334,446
Annual Debt Service Payment 1,501,778 1,498,450
Grand Total All Costs $ 6,436,447 $ 6,832,896
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Other Considerations
MULTI -YEAR FINANCIAL FORECAST
The current financial forecast predicts full use of the Academy's fund balance by FY 14/15. Unless
revenues increase or operating costs are reduced, Westlake Academy's estimated FY 11 -12 General
Fund Balance of $ 653,318 will drop below the 45 operating day threshold established by policy in FY 12-
13.
Figure 2 —Revenues, Expenditures & Fund Balance —General Fund Summary
WA Programme Growth
(Revenue, Expenditure, Fund Balance)
a$6 -- -- -.__— ._ ^.-- -' - - -- _._------- - - - - -- 10
x i
c
$5 _— $
�
0
c
I 6
0
$4 — — 4
2
$3 2
Y
I
5
Z
M
-2
'- - $1 - -'
-'
4
$o —
_ FY03 /04 FY04 /05 FY05 /06 FY 06/07 FY07 /08 1 FY 08/09 FY09 /10 FY10 /11 FY 11/12 FY12/13 FY 13/14 FY 14/15 6
Revenues 1.09M i 1.83M i 2.41M 2.88M 3.17M� 3.66M 4.28M 4.59M i 5 24M 5.19M 5.19M j 5.19M
— Expenditures 107M 1.61M i 2.21M 2.62M 3.23M 3.71M 3.92M 4.61M 5.33M 5.44M _ 5.54M I 5.65M
!--Fund Balance 12K 232K 428K ; 692K 634K 502K 754K 656K 653K 383K 18K i (454,682)
Historically, revenues and expenditures have increased at relatively the same rate which has dictated the need for a
higher fund balance in order to sustain the 45 -day minimum requirement established by Board policy.
PROGRAMS & FACILITIES
Over the past two years, Westlake Academy has expanded its course offerings and curriculum to include
expanded technology classes, theater, environmental sciences and additional foreign languages
(French). These additions have been funded in part by increased student enrollment which has placed
greater demand on existing facilities. In an effort to diminish the effects of this demand, the Board
authorized the lease of three (3) temporary buildings. The total cost for these buildings (3 year lease
plus physical preparation work) is estimated at $181,820; these buildings do not meet the criteria for a
Capital expense and will be paid from the Westlake Academy's operational budget (see pages 40 -42 for
further discussion).
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Informational Summary
CHANGES IN DEBT
Debt service for the Academy's capital infrastructure is included in the Town of Westlake's municipal
budget. The amount of debt outstanding including interest is approximately $30.7 million; this debt will
be retired in 2021. The average annual debt service for Academy facilities paid by the Town of Westlake
is approximately $1,500,000. Discussion of current and future capital projects may be found in the
Organizational Section of this document (see pages 40 & 41).
FACILITIES
The Academy was designed and built to service approximately 620 students, with the addition of almost
100 students; the facilities at the Academy are projected to reach full capacity at the beginning of the
current school year. However, curriculum and course schedules play an equally important role in
determining facility use; the IB curriculum places a unique demand on staff and resources. In addition to
the permanent structures on the campus, the lease cost for three temporary buildings was added as a
budget amendment to the FY 10/11 Academy budget. The buildings will be used to support expanded
curriculum offerings in the DP programme. These buildings do not meet the criteria for "capital"
expenses and are paid for from the Academy's operating budget. The 3 year lease includes a standard
purchase option however, no commitment has been made at this time; the Board is currently discussing
how this and other facility needs will be met in the future.
PERSONNEL TRENDS
The Academy has added personnel each year since its opening to support new grade levels and classes
as well as curriculum expansion. The total number of full time equivalent (FTE) positions filled in FY 10-
11 was 59.45. In FY 11 -12 the Academy will add an additional 8.4 FTE positions to support additional
course offerings and class expansions, the total number of FTE positions will increase to 67.85 (see page
92 in the Informational section for a complete list of all positions).
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STUDENT ENROLLMENT TRENDS
Westlake Academy's student enrollment is established by two sets of boundaries. The primary
boundary encompasses the Town of Westlake and allows Westlake residents automatic entry into
Westlake Academy. The secondary boundaries are comprised of 31 of the surrounding school districts.
While any school -age child from these districts is allowed to attend the Academy, demand for entrance
has exceeded the Academy's capacity necessitating an annual lottery system that is carried out
according to the standards and practices dictated by Federal law.
Student enrollment has grown since the Academy's opening in FY 03 -04 with the addition of one new
grade level each year. The Academy opened with Grades 1 through 6 and completed adding grade
levels in FY 09 -10. The Academy's enrollment continued to expand in FY 10 -11 with an increase in target
class sizes of 20 pupils per class and the addition of a third section in the secondary programme. In FY
11 -12 the campus facilities at the Academy are expected to reach full capacity (including the three
portable buildings discussed earlier in this document). Any future growth in student population may
necessitate building or leasing additional space.
Figure 3 Westlake Academy Student Enrollment
Students
700
600
500 _ x
400 a4�
300
200
100
0
530
FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12
1 -6 K -7 K -8 K -9 K -10 K -11 K -12 K -12 K -12
Total enrollment has increased steadily since FY 03104 in harmony with the expansion of grade levels. The increase from
518 in FY 10/11 to 627 in FY 11112is due to the Board's decision to expand class sizes in an effort to increase State funded
revenues. Future enrollment increases or decreases are at the sole discretion of the Board.
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