The financial details of the Kimberly Area School District presented at the 2009 Annual Meeting on September 28th, 2009

1. KIMBERLY AREA SCHOOL DISTRICT 2009 ANNUAL MEETING Monday September 28, 2009 6:30 PM - Budget Hearing 7:00 PM - Annual Meeting KIMBERLY HIGH SCHOOL W2662 Kennedy Avenue Kimberly WI 54136

2. KIMBERLY AREA SCHOOL DISTRICT BUDGET HEARING Presented by: Gary Kvasnica Director of Business Services

3. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09

4. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 STUDENT ACHIEVEMENT As evidenced by our test scores, the District continues to be one of the higher achieving Districts in the Fox Valley, as well as the State The Kimberly Area School District as a low spending, high achieving District, continues to provide our Community with great value

5. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 Compiled by the Wisconsin Tax Payers Alliance

6. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 Compiled by the Wisconsin Tax Payers Alliance

7. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 Compiled by the Wisconsin Tax Payers Alliance Read Math Pct. Decile Pct. Decile 4th Grade K12- District Average 81 77 Kimberly 91 3 93 2 8th Grade K12- District Average 84 75 Kimberly 92 3 92 2 10th Grade K12- District Average 75 70 Kimberly 89 1 87 1

9. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 Compiled by the Wisconsin Tax Payers Alliance DISTRICT PER STUDENT EXPENDITURES 2008-09 BUDGET Instruction Comparative Exp. Sal. & Pupil Instr. Bldg. Pupil Capital Exp./ Total % St. Avg. Type Name Total Fringe Serv. Supp. Admin. Grds. Trans. Debt Exp. Amt. decile (+/-) K-12 DISTRICT AVG. 6,732 5,701 493 542 861 1,117 458 778 11,491 9,746 K-12 Kimberly 6,190 5,079 470 491 675 900 277 1,244 10,784 8,726 10 -13.1

10. KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW - 2008/09 Enrollment continued to Grow An increase of 132 Full Time Equivalent (4K and 5K count as .5) in students 08/09 vs. 80 in 07/08 Higher Rate than Expected

11. JANSSEN BOILER REPLACMENT Reduced heating costs by 32% Replaced 47 year-old Boilers with new Energy Efficient System Unlike many Districts, we were able to fund our project without having to ask tax payers for additional money. Capital Improvement Fund established by District allowed us to set aside funding over a several year period KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09

12. JANSSEN BOILER REPLACMENT KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Before After Heat pipes were installed in ceiling with ceiling/light replacement project to reduce costs

13. JOHN STREET ATHLETIC COMPLEX UPGRADES KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Excavated a large retention pond to address drainage issues

14. JOHN STREET ATHLETIC COMPLEX UPGRADES KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Removed compacted soils for stadium football field and installed new fill along with Synthetic Field Turf

16. JOHN STREET ATHLETIC COMPLEX UPGRADES KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Athletic Complex Donor Wall constructed and donated to the District by Sanderfoot Masonry and other contractors

17. KIMBERLY AREA SCHOOL DISTRICT Budget Message THE YEAR IN REVIEW - 2008/09 OTHER FACILITY IMPROVEMENTS

18. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Westside School Improvements 2 st Year of a 3-Year Carpet Replacement Plan 07/08 08/09

19. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Westside School Improvements Replaced deteriorated Wood Fascia with Steel Fascia

20. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Chalkboards at Janssen replaced with Whiteboards Before After

21. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Mapleview Improvements Replaced Bathroom Partitions Before After

22. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Janssen Improvements Drain tiles installed in play area to address water build-up after snow and heavy rainfall

23. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Sunrise School Improvements Asphalt in Visitor Parking Lot Milled and Replaced Before After

24. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Sunrise School Improvements Painting of Building Exterior completed Before After

25. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Woodland Improvements Handicap Accessible Playground with Rubberized Surface for Wheelchair Access

26. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 JRG Middle School Improvements RE-ROOFED SECTION B

27. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 JRG Middle School Sandy Huiting Learning Center Outside Place for Kids to Meet and Learn Parent and Community Funded New Retention Pond allowed us to Build

28. KIMBERLY AREA SCHOOL DISTRICT FACILITIES The improvements just listed have been paid for out of Capital Improvements Fund Helps insure that Capital Improvements done when needed Tax Levy for this Fund is included within Revenue Limits Separate Fund that can only be used for Capital Improvements

29. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW - 2008/09 Energy Conservation The new Boiler System at Janssen significantly reduced energy consumption Mapleview light replacement Plan completed with energy efficient lights in entrances Janssen lighting replacement Plan completed New Software installed that automatically turns off computers when not in use

30. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW - 2008/09 TECHNOLOGY IMPROVEMENTS Replaced old Computers at the Middle School Added Hardware and Software to improve interoperability between different software products Replaced Network Switches to increase performance Installed video projectors at High School and Middle School to enhance learning Increased Storage Capacity Implemented Mobile Computer Lab at Middle School to enhance learning

31. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Insurance Change Moved to New Plan Administrator For Non-Teaching Staff for Self-Funded Dental Plan Reason : Vendor has negotiated lower fees with Dentists

32. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 Implemented a New Employee Savings Plan Meets new IRS Guidelines for 403(b) Tax Deferred Savings Plans for Public Sector Employees Offers Employees a variety of no-load mutual funds at a cost significantly lower than previous plans Investment Providers selected by a Volunteer Committee of District Employees After-tax (Roth) component now available Similar to 401K in Private Sector

35. KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW - 2008/09 Created in 2002/03 Can only be used to pay Retiree Benefits 08/09 Contributions Current Trust Fund Balance Post Retirement Benefit Trust Disbursements 08/09 Fund Balance Increase Interest Earned District is not obligated to make payments toward the Trust $1,312,005 $882,738 $191,064 $620,331 - $3,186,912

36. KIMBERLY AREA SCHOOL DISTRICT YEAR IN REVIEW - 2008/09 Post Retirement CDO Investment In December of 2006 the District invested $700,000 from the Post Retirement Trust and borrowed $4,300,000 to purchase $5,000,000 in a Collateralized Debt Obligations (CDO’s) for the Trust The market value of investment declined substantially Credit linked AA rated Corporate Debt of approximately 140 investment grade companies that matures in 7-years. Goal – Generate approximately $550,000 investment incomes at end of the 7 year term The District believes it was mislead regarding the investment and has filed a lawsuit along with 4 other Wisconsin School Districts seeking rescission, damages and attorney fees

37. KIMBERLY AREA SCHOOL DISTRICT THE YEAR IN REVIEW – 2008/09 District Owned Land Sold At prior Annual Meeting electorate Authorized District to sell a lot adjacent to Woodland School Lot was sold for $37,500!

38. KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10!

39. KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 STATE BUDGET SHORTFALL Cost-of-Living Increase under Revenue Controls decreased by $75 per student or $308,467 Less Money to Operate State aid reduced by approximately 2.5% Under Revenue Controls decreases in State Aid result in increased taxes

40. KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 FEDERAL STIMULUS FUNDING Purpose: Stimulate Economy & Aid Financially Strapped School Districts American Recovery and Reinvestment Act (ARRA) District to receive $946,414 over a 2-year period to help implement student achievement initiatives for our special education students

43. KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 FACILITY IMPROVEMENTS

44. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Westside School Improvements Final Year of a 3-Year Carpet Replacement Plan 08/09 09/10

45. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Westside School Improvements Deteriorated Concrete and Asphalt in Front Drive Replaced Before After

46. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Janssen Improvements Replaced original Sinks, Faucets and Water Fountains Before After

47. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Janssen Improvements Replaced antiquated Clocks with Automated Clocks Before After

48. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Sunrise School Improvements Asphalt in North Playground Milled and Replaced Before After

49. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Mapleview Improvements Widened Receiving Room Door Before After Easier more Efficient Egress for Distributing Supplies

50. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Water Line Improvements Replaced deteriorated Water Main at Middle School Connected Water Line to the Woodland Field Irrigation System

51. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 JRG Middle School Improvements Before After Replaced old Locker Room Doors

52. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 JRG Middle School Improvements RE-ROOFED SECTION OVER TECH ED AND ART ROOM

53. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Resurfaced Tennis Courts at High School and Middle School Before After

54. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Administration Building Improvements Before After Second Floor Reconfigured for Additional Staff

55. KIMBERLY AREA SCHOOL DISTRICT WHATS NEW IN 2009/10 Energy Conservation With the Installation of the Boiler System at Janssen all schools with the of exception Sunrise Elementary have above average energy efficiency With one-time freed up money because of Federal Stimulus Funding, the District plans to implement additional energy conservation projects at Sunrise and other schools to help reduce future operating costs Completed Sunrise Gym Lighting Replacement

57. Continued Health Insurance Cost Containment KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 Our Non-Teaching Staff moved from a Point-of-Service Network to a Single Provider System (HMO) The rising cost of health Insurance continues to be a major concern in this era of revenue controls Cost of a Family Plan approximately $2,000 less than would have been under the old plan

58. KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 Unsettled Labor Agreements Teacher and Para-Professional Contracts expired on June 30, 2009 Have not settled 09-11 contracts with either labor group as of the date of this publication

59. Enrollment KIMBERLY AREA SCHOOL DISTRICT WHAT’S NEW IN 2009/10 The District projects continued Growth at a slower rate

60. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE

61. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE The District receives a large percentage of its funding from the State State has had difficulty balancing its Budget over the past several years Expected to worsen with recent economic decline and continued structural imbalances of the budget District will need to remain diligent to maintain its strong financial position It is likely that there will be even more restrictive revenue controls and further reductions in state aid

62. Enrollment Growth KIMBERLY AREA SCHOOL DISTRICT THE FUTURE The District receives significantly less revenue per student than the state average Offset in past by the District’s rapid enrollment growth As growth and corresponding revenue increases lessen, we will need to adjust our spending accordingly

63. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE Wisconsin Retirement System Contributions As a result of the recent economic downturn, investments used to pay retirement benefits for state employees have declined substantially To make up for these losses, School Districts will need to substantially increase contributions over the next several years We need to work with our labor groups to have them help share the financial burden of these increases

64. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE Health Insurance The District, our Labor Unions, Health Care Providers, Insurance Carriers, State and Federal Government must all work together to address issues! As Costs continue to rise

65. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE Labor Relations With the elimination of labor cost controls (QEO) and more restrictive revenue limits The District will need to work closely and creatively with our labor groups to provide fair compensation without eroding the quality of education

66. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE Energy Costs Less money will be available to educate children unless we continue to find ways to reduce energy consumption Energy Costs are rising at a faster rate then our Revenue The District has been a leader in Energy Conservation

67. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE Technology As these Funds become unavailable, the District will be challenged to meet the goals for our Technology Plan The District has paid for a large portion of our Technology with Grant Funding and Referendum Proceeds

68. KIMBERLY AREA SCHOOL DISTRICT THE FUTURE CHALANGE With further limitations on revenue and increasing costs Difficult choices may need to be made District is currently in good Financial Shape We will need to prioritize what is most important

71. KIMBERLY AREA SCHOOL DISTRICT BUDGET HIGHLIGHTS TAX LEVY GENERAL FUND DEBT SERVICE CAPITAL IMPROVEMENTS *COMMUNITY SERVICE TOTAL Actual 2008-09 $9,607,904 $4,260,503 $ 553,150 $46,415 $14,467,972 Budget Dollar Percent 2009-10 Change Change $11,033,938 $1,426,034 14.84% $531,000 -$ 22,150 - 4.00% $15,645,534 $1,177,562 8.14% $4,049,080 -$211,423 - 4.96% $31,516 - $ 14,899 -32.10%

72. KIMBERLY AREA SCHOOL DISTRICT BUDGET HIGHLIGHTS TAX LEVY 2006-07 2007-08 2008-09 2009-10 Amount $14,593,571 Increase/Decrease $ 15,645,534 $1,177,562 8.14% - $155,321 - 1.4% $14,467,972 $ 29,712 0.2% Under the Revenue Control Formula - If State Aid decreases the Tax Levy increases $14,438,250 The State Aid increase in 09-10 is significantly less than 07-08 & 08-09

73. TAX RATE PER $1,000 OF EQUALIZED ASSESSED VALUATION GENERAL FUND DEBT SERVICE CAPITAL IMPROVEMENTS COMMUNITY SERVICE TOTAL Actual 2008-09 $5.94 $2.63 $0.34 $0.03 $ 8.94 Budget DOLLAR PERCENT 2009-10 * CHANGE CHANGE $6.81 $0.87 14.65% * Tax rate is estimated. The actual rate can not be determined until property valuation is certified by the Department of Revenue in October. $0.33 -$0.01 - 2.94% $0.02 -$ 0.01 -33.00% $9.66 $0.72 8.05% $2.50 -$0.13 - 4.94%

75. * 2009-10 Property Valuations and the corresponding Tax Rate are estimated. Actuals can not be determined until property valuation is certified by the Department of Revenue in October.

78. Salary and Benefit Expenses for new and existing staff increased by $2,522,400 Unaudited 2009-10 Dollar Percent GENERAL FUND 2008-09 Budget Change Change Expenses (Money Going Out ) $37,789,197 $40,948,450 $3,159,253 8.36%

81. SIGNIFICANT CAPTIAL EQUIPMENT PURCHASES Copier Replacements $80,000 Computer System Replacements & Networking Hardware $109,000

82. SIGNIFICANT GENERAL FUND EXPENSE DECREASES Short-Term Borrowing Expenses - ($44,602) Technology Related Equipment - ($252,000) Budget includes the same dollar allotment per student as last year in non-salaried expenditures where practical Interfund Transfer to the Special Education Fund reduced as a result of Federal Stimulus Funding - ($3,111)

85. 2009 ANNUAL MEETING Motion will be made to adopt a Tax Levy of $15,645,534 as presented to you, the electorate KIMBERLY AREA SCHOOL DISTRICT

86. More detailed information is available in the Annual Meeting Booklet or can be obtained at the Administrative Offices on 217 E. Kimberly Avenue Do you have any questions? Gary Kvasnica, the Director of Business Services, can be reached at 788-7900. Thank You!

87. KIMBERLY AREA SCHOOL DISTRICT ANNUAL MEETING AGENDA ITEM Sale of District Land no longer needed for Educational Purposes The District acquired Lot 84 of the Jeff Meadows Subdivision in 2005 and had a path installed to provide walking access to Woodland School The District has been approached by the owner of the lot to east of lot 84 asking us to sell the southeast portion of Lot 84 up to 5 feet away from the walking path that divides the property The District does not need this land to the east of the walking path and would prefer not having to maintain it