River Ridge School District February 18 2014 Operational

River Ridge School District February 18, 2014 Operational Referendum Public Information Meetings January 29 - 3: 15 P. M. and 6: 30 P. M. @ High School (Patch Grove) February 5 - 6: 30 P. M. @ Upper Elementary School (Bloomington) 1020 N. Broadway, Suite G-9 Milwaukee, WI 53202 Presented by: Carol Wirth, President Phone 414/434 -9644

The School Board placed a question on a referendum ballot for voters to consider on Tuesday, February 18, 2014. 2

2014 Regular Election Dates Spring Election Fall Election February 18 August 12 April 1 November 4 Costs Associated with February Regular Elections – Government Accountability Board With no other matter on ballot – District pays costs of ballots, supplies, notices and other materials under Section 5. 68(2) of Wisconsin Statutes. Municipality in which election is held responsible for compensation of election officials and polling place costs – Wisconsin Statutes Section 7. 03(1)(b) & (bm), and Section 5. 68(5). 3

Sample Ballot 2014 Operational Referendum Shall the River Ridge School District, Grant County, Wisconsin be authorized to exceed the revenue limit specified in Section 121. 91, Wisconsin Statutes, by $350, 000 beginning with the 2014 -2015 school year for recurring purposes and by an additional $150, 000 (for a total of $500, 000) for the 2014 -2015 school year through the 2018 -2019 school year for non-recurring purposes, consisting of continuing the 2008 and 2012 approvals for operating expenses including instructional programs, technology, and enhancing districtwide security? YES NO 4

What is the Referendum Question Asking? • The 2014 Operational Referendum asks permission to levy a tax (“exceed the revenue limit”) in the amount of $500, 000 for five years, 2014 -15 through 2018 -19, (“non-recurring”) and then drop to $350, 000 and remain at that amount on-going (“recurring”). – – “Non-recurring” means limited – expires “Recurring” means on-going – no expiration • An operational referendum allows the District to levy a tax to pay operating expenses for instructional programs and technology, as well as funding for district-wide security enhancements. An operational referendum is not a referendum to borrow money. • The referendum question is not a vote on the District’s entire budget and tax levy. This occurs at the District’s Annual Meeting. 5

Comparison of 2012 to 2014 Referendum Bar graph is shaded according to the language of “non-recurring” or “recurring” as used for the 2012 and 2014 Operational Referendums. 6

River Ridge Historical Operational Referendums • 2008 – Four-Year Referendum (Non-Recurring) $300, 000 2008 -09 Vote: • $400, 000 2009 -10 Yes - 511 $440, 000 2010 -11 $440, 000 2011 -12 Expired No - 444 2012 –Two-Year Referendum* (Non-Recurring) $440, 000 $515, 000 2012 -13 2013 -14 Vote: Yes - 483 Expired No - 386 *The District proceeded with a two-year referendum due to uncertainties associated with legislative changes included in the State’s 2011 -13 Budget. 7

Historical Revenue Limits with Operational Referendums The Revenue Limit determines how much revenue the District has to pay operating expenses. 8

Operating Budget Reductions and Additions The 2014 Operational Referendum requests permission to continue the 2008 and 2012 referendum approval. The District is committed to identifying and assessing operating efficiencies on an ongoing basis. Below is a list of reductions and additions to the District’s operating budget over the past two budget years: 2012 -13 Budget Reductions Staffing Teachers: FACE, English, 3 rd Grade, Math (. 5 FTE) Aid (Full Time) Elementary Coach (Asst FB) Speech & Language Therapist (Special Ed) Special Ed (Maintenance of Effort) Textbooks Distance Learning CESA Transportation (WARCO) Insurance Savings (New Hire) Unemployment Comp Total Reductions 2012 -13 ($271, 600) ($ 29, 000) ($ 2, 500) ($ 69, 700) ($ 38, 650) ($ 15, 000) ($ 1, 700) ($ 10, 700) ($ 25, 900) ($ 10, 500) ($ 7, 000) ($482, 250) 9

Operating Budget Reductions and Additions (Continued) 2012 -13 Budget Additions Staffing Teachers: 2 nd /3 rd Grade Teacher (. 5 FTE); Math (. 5 FTE) $ 62, 500 Cross Categorical (1 FTE) Special Ed Retiree Payments Increase $ 76, 000 $ 79, 300 Total Additions 2012 -13 $217, 800 Net Reductions for 2012 -13 Budget ($264, 450) In March 2012, the District also refinanced existing referendum approved debt saving $156, 039 over six years. The debt will be completely repaid by 2022. 10

Operating Budget Reductions and Additions (Continued) 2013 -14 Budget Reductions Staffing Maintenance/Custodial, staffing changes (band, title, custodial) Special Ed (Maintenance of Effort) Building-to-building travel Rural Education Achievement Program Insurance Savings (12% emp contrib, higher deduc, staff changes) Retirement Insurance Total Reductions 2013 -14 ($ 88, 400) ($ 16, 000) ($ 13, 500) ($ 1, 370) ($ 32, 000) ($ 52, 000) ($203, 270) 2013 -14 Budget Additions Net Open Enrollment $ 48, 460 Net 2013 -14 Budget Reductions ($ 184, 810) TOTAL Reductions for Two Budget Years ($419, 260) 11

Voting on the Referendum Question A “Yes” vote: • Gives the District permission to include $500, 000 in the tax levy for five years (2014 -15 through 2018 -19), and then drop down to $350, 000 in 2019 -20 to remain ongoing. • Continues the 2008 and 2012 Referendum approvals for operating expenses. • District continues instructional program. • District continues technology plan rotation. • District-wide security enhancements: doors/locking; phone/communication system. 12

Voting on the Referendum Question (Continued) A “No” vote: • Does not give the District permission to levy a tax to exceed the revenue limit. • The 2012 Referendum expired; the District has $515, 000 less revenue to pay operating expenses. • School Board considers options – No decisions made 2014 Operating Referendum / August 12 / November 4 Budget Reductions 13

Budget Reductions – “No” Vote The School Board prioritizes $515, 000 of reductions to operating budget. • District must maintain “core area” subjects: English, Math, Science, Social Studies. • The School Board prioritizes reductions in “non-core area” programs including -curricular” activities. • The School Board considers options – No decisions made “co Class Sizes / Transportation / Technology / Staffing / Maintenance 14

Tax Impact of 2014 Operational Referendum • Approval of the 2014 Operational Referendum will not be a tax increase. • December 2013 tax bills included $515, 000 of taxes approved by the 2012 Referendum, which has now expired. • The 2014 Operational Referendum will allow $500, 000 to be included in the December 2014 through 2018 tax bills, and decline to $350, 000 for the December 2019 tax bills and remain in tax bills thereafter. (See bar graph on slide 6 herein) • If the 2014 Operational Referendum is not approved, $500, 000 will not be included in the December 2014 or future tax bills, and the District’s levy will decline. $500, 000 of reductions will need to occur in the District’s operating budget. 15

District Tax Levy Information 2013 -14 District Tax Levy Tax Base: 2013 District Equalized (Fair Market) Value - $212, 039, 868 Tax Bill Impacted: December 2013 Total District Tax Levy (Operating and Debt) Mill Rate Per $1, 000 of Equalized (Fair Market) Value (Mill Rate X Property Value per $1, 000 = Taxes ) $2, 853, 764 $13. 45 2012 Ref Portion $515, 000 (expired) $2. 42 Example: $2. 42 X $100, 000 property value - $242. 16

District Tax Levy Information (continued) 2014 -15 District Tax Levy Tax Base: 2014 District Equalized (Fair Market) Value – Information Available from Dept. of Rev October 2014 Tax Bill Impacted: December 2014 District Tax Levy (Operating and Debt) - Available October 2014 Ref Portion - $500, 000 In October, school districts receive certifications from the Dept. of Revenue and Dept. of Public Instruction, which determines the total tax levy and tax rate for each budget year. The referendum portion is determined by the vote of the school district electorate on February 18, 2014. For the 2014 -15 tax levy, the 2012 Referendum portion of $515, 000 cannot be included, but approval of the 2014 Referendum allows the $500, 000 to be included in the tax levy. 17

School District Finance Factors (Effective 1993) Revenue Limit Law The Revenue Limit Law (Wisconsin Statutes 121. 91) limits the amount of revenues a district receives from state aid and property tax levy to pay the district’s operating expenses. The revenue limit is calculated each year using the district’s student enrollment and the current legal components. Permission to exceed this limit must be approved by referendum. State Aid Formula State Aid – River Ridge School Districts' 2013 -2014 budget received state aids equal to approximately 54% of the prior budget year’s operating and debt service expenses. The formula is divided into three tiers. State aid is received in the year following the expenditure. State aids are not guaranteed and are subject to the funding within the State’s biennial budget for all Wisconsin school districts. The State appropriation for 2014 -15 equalization aid could be slightly greater than the 2013 -14 appropriation as stated in the 2013 -15 State Budget. Taxes levied for the 2014 Referendum would be used for operating expenses which are eligible for state aid. Consequently, operating expenses would need to be reduced if permission to exceed the revenue limit is denied. A reduction in operating expenses for the 2014 -15 budget will also reduce state aid for the 2015 -16 budget. 18

State Budget General Aid Appropriation Over Time Aid Year General Aid (Billions) 2002 -03 $4. 201 2003 -04 $4. 273 1. 7% 2004 -05 $4. 318 1. 0% 2005 -06 $4. 614 6. 9% 2006 -07 $4. 723 2. 4% 2007 -08 $4. 723 0. 0% 2008 -09 $4. 800 1. 6% 2009 -10 $4. 653 -3. 1% 2010 -11 $4. 653 0. 0% 2011 -12 $4. 262 -8. 4% 2012 -13 $4. 294 0. 7% 2013 -14 $4. 341 1. 1% 2014 -15 $4. 416 1. 7% Source: DPI School Financial Services % Change from Prior Year 19

Comparison of Revenue Limit, State Aid and Tax Levy 20

Historical Tax Levies and Mill Rates Budget Year Equalized Valuation Excluding TID Total Mill Rate Total Tax Levy (Per $1, 000) 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 $212, 039, 868 212, 430, 105 208, 942, 782 210, 076, 545 214, 091, 886 203, 308, 258 192, 935, 109 $13. 46* 11. 59 11. 98 12. 78 10. 62 10. 15 8. 29 $2, 853, 764 2, 461, 380 2, 503, 832 2, 685, 307 2, 272, 985 2, 063, 816 1, 598, 908 *Note: 2012 Referendum Portion of 2013 -14 Tax Levy = $515, 000 (Tax Rate Portion) = $2. 42 21

Breakdown of Historical Tax Levies 22

Enrollment History & Projections High School (9 -12) 229 213 204 210 205 192 182 165 153 132 Middle School (5 -8) Elementary (Pre-K-4) 154 182 143 205 144 212 150 212 164 203 152 212 160 206 169 200 143 234 147 219 Total Enrollment 565 561 560 572 556 548 534 530 498 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 September High School (9 -12) 129 132 148 163 177 Middle School (5 -8) Elementary (Pre-K-4) 161 208 163 201 151 202 145 205 134 209 Total Enrollment 498 496 501 513 520 2014 2015 2016 2017 2018 September 23