School District Fiscal Year 2023-2024 Budget Overview
Detailed information on the School District's budget process for the fiscal year 2023-2024, including TRIM compliance, budget calendar timeline, fund breakdown, and five-year trend data analysis. Insights into the requirements and procedures involved in budget approval and compliance with state regulations.
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Final Budget Hearing Fiscal Year 2023-2024 Monday, September 18, 2023 Stephanie Hofheinz, Chief Financial Officer HofheinzS@Walton.k12.fl.us 850-892-1100, ext. 1346 1
What is TRIM Compliance? The Truth in Millage (TRIM) process informs taxpayers and constituents about the legislative process by which ad valorem taxes are determined each year. All taxing authorities much adhere to Chapter 200, Florida Statutes. TRIM requires School Districts to set meeting dates first and notify other taxing authorities. No other public hearings can be held during the school district dates and times. TRIM process begins with Certification of the Taxable Values, normally on July 1st of each year. This starts the clock with regard to advertisements, hearings and documentation which is required to be shared with both local and state agencies to ensure compliance. Within 24 days of Certification, the Superintendent must submit the balanced budget to the School Board for approval. Within 29 days, the budget advertisements must appear in the newspaper locally circulated. 2 to 5 days later, a tentative hearing must be held for public input and subsequent approval of the Tentative Budget and Millage Rates. Final Budget Hearing must be held with 65 to 80 days of the July 1st Certification of Taxable Values. 2
Florida Department of Revenue: Budget Calendar Timeline 2023-24 Superintendent Hughes officially submits the proposed tentative budget for 2023-24 and corresponding advertisements to the Board for approval. 5:05 PM- Public hearing on the 23/24 Tentative Budget and Millage and Special Meeting to Adopt Tentative Budget, Millage Rate and Resolution. Resolution to Tax Collector, Property Appraiser, and the Department of Revenue. Budget documents to be uploaded and sent to DOE by this date. Certification of Taxable Value from Property Appraiser 07/19/2023 07/26/2023 09/18/2023 10/18/2023 07/1/2023 07/24/2023 07/31/2023 09/21/2023 TRIM Compliance package due to Department of Revenue Receive Required Local Effort millage and State FEFP Revenue numbers from the Florida Department of Education. (2nd FEFP Calculation) The tentative budget and required advertisements published in the DeFuniak Herald Breeze. Submission deadline by noon on Tuesday, July 25th. 5:05 PM- Public Hearing on the Final Millage and Budget for fiscal year 2023- 24. 3
2023-2024 Final Budget by Fund FUND FUND DESCRIPTION TENTATIVE BUDGET (Including Fund Balance) $231,583,095 $8,043,068 $17,761,028 GENERAL FUND OPERATING BUDGET FOOD SERVICE RESTRICTED FOR FOOD SERVICE FEDERAL RESTRICTED FOR SPECIFIED PURPOSES (FEDERAL GRANTS) $10,730,342 DEBT SERVICE RESTRICTED FOR DEBT SERVICE PAYMENTS (COPS) $185,416,527 CAPITAL PROJECTS RESTRICTED FOR MAINTENANCE,RENOVATION, CONSTRUCTION, & TECHNOLOGY $453,534,060 TOTAL TENTATIVE BUDGET: 4
5 5- -Year Trend Data Year Trend Data Fund 18-19 19-20 20-21 21- 22 22- 23 23- 24 General Fund 90.4M 139.2M 154.9M 163.2M 198.7M 231.6M Food Service 3.4M 3.9M 4.2M 4.5M 7.3M 8.0M Federal 5.9M 6.5M 8.9M 17.5M 29.1M 17.8M Debt Service 6.9M 6.2M 5.1M 5.1M 5.1M 10.7M Capital Projects 59.3M 66.6M 75.6M 79.1M 86.1M 185.4M Totals 165.9M 222.5M 248.8M 269.6M 326.3M 453.5M
General Fund General Fund serves as the primary operating fund for the District. Funds generated primarily from Legislative appropriations through the Florida Education Finance Program (FEFP) and local tax revenues. Property Values ($46.3 Billion) increased by 20% and tax collections are budgeted 15% higher than the 22/23 FY. Projected increase of 16.8$ Million in Revenue. Required Local Effort Millage certified by the Department of Revenue and calculated by the Department of Education. 22/23 RLE- 1.612, down from 1.744 for 22/23, reduction of .132 mills or 7%. Categorical Funding eliminated for Teacher Salary Increase Allocation, Instructional Materials, Science Lab, Library Media, Florida Teacher Classroom Supply and Reading Allocation. These funds are now part of total FEFP Funding. Approx. $6M. Funds used to cover Salaries and Benefits, Transportation costs, Utilities, PAEC Risk Management Insurance Premiums, Substitutes, Materials and Supplies, CAPE, Advanced Placement, Guardian Program, and various contracted services and digital resources to promote student achievement. Also provides funding for special programs such as Art and Music as well as alternative placements at the MIC and Magnet Schools, depending on the student needs. 6
Budget Highlights Budget includes Salaries and Benefits for additional instructional, support and administrative personnel needed to accommodate growth throughout Walton County, as well as our expanding ESE and ESOL student populations. Retirement rate increase of almost 2% for regular employees, effective July 1, 2023 Health Insurance rate increase of 13%, effective October 1, 2023 Family Empowerment Scholarship Funds -$4.3M based on expanded legislation Budgeted increases for both fuel and utilities PAEC Risk Management Insurance Program increase due to rising property casualty insurance costs. Increase of 23% from 22/23 assessments Additional Instructional Materials funds budgeted in order to fund textbooks and supplemental materials and curriculum to keep moving at 5G to #1!! Continued focus on School Safety with the continuation of the Guardian Program, expanded SRO presence, security trainings, and securing our campuses throughout the District 7
Budget Highlights Budget includes over $18M in Federal Projects with over $9M in ESSER II, ARP and other CARES Act grant balances. Most end in September of 2024. Monitoring closely with Federal Programs to avoid the funding cliff once these funds have been fully expended Capital Projects budgets include major construction projects at the new Freeport Middle School at Hammock Bay, Paxton School, District Office, South Walton Athletic Complex and the MIC School at St. Joe/STEAM, New project categories include Renovation of Old Freeport Middle School campus and funds for a new Elementary School in Freeport. Debt Service Budget is significantly higher due to the COPS transaction done for the construction of the new Freeport Middle School at Hammock Bay. Annual debt payments now exceed $10.7M as compared to $4.9M in 22/23 Food Service continues to operate in the black therefore no increases in student breakfast or lunch prices will be recommended for the 23/24 School Year 8
Millage Proceeds By Type Millage Type Certified Taxable Value: Mills Proceeds $46,385,960,816 Operating Required Local Effort 1.612 Discretionary Voted Mill Levy @96% $71,783,203 $33,308,831 0.748 0.500 $22,265,261 2.860 $127,357,294 Capital Outlay 1.393 $62,031,018 TOTALS: 4.253 $189,388,312 9
Comparison of Millage Rates Comparison of Millage Rates Operating 18-19 19-20 20-21 21-22 22-23 23-24 Millage Change 0.132 0.000 0.000 0.132 0.000 0.132 RLE 2.420 0.748 0.500 3.668 1.393 5.061 2.382 0.748 0.500 3.630 1.393 5.023 2.434 0.748 0.500 3.682 1.393 5.075 2.143 0.748 0.500 3.391 1.393 4.784 1.744 0.748 0.500 2.992 1.393 4.385 1.612 0.748 0.500 2.860 1.393 4.253 Disc. Mill Capital Outlay Totals Current Year state law rolled-back rate 1.4893 Current Year local board rolled-back rate 2.2553 Total rolled-back rate 3.7446 The Rolled-Back Rate is the rate that would generate the same amount of property tax revenues as approved for the prior year. Established by the Truth in Millage (TRIM) A tax rate higher than the rolled-back rate must be advertised with a NOTICE OF TAX INCREASE for the Tentative Budget Hearing. **Since 14/15, TOTAL MILLAGE RATES HAVE DECREASED BY 1.238 MILLS, 23%. THIS RESULTED IN LESS TAXES PAID BY PROPERTY OWNERS.
Millage Rate Comparison 800 759 700 736 600 Property Tax 500 541 524 400 438 424 300 328 318 200 220 213 100 110 106 0 50K 75K 100K 125K 150K 200K Taxable Value of Home FY 22-23 FY 23-24
Certified Taxable Value Comparison 50 CERTIFIED TAXABLE VALUE (BILLIONS) 45 46.3 40 38.4 35 30 25 27.1 23.6 20 21.8 20.1 18.4 16.8 15 15.1 10 5 0 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 FISCAL YEAR
General Operating Budget: Revenue Sources Source Amount Budgeted Percentage Federal $577,000 0.37% State $19,447,991 12.49% Local $135,702,177 87.14% 0.37% 12.49% 87.14% Federal State Local
General Operating Budget: Expenditures By Function Category Amount Budgeted Percentage 67.5% 11.3% 9.4% 2.7% 5.3% 3.8% 100% Instruction $116,238,925 $19,448,266 $16,101,072 $4,769,695 $9,063,341 $6,559,441 $172,180,740 Operations Support District Leadership School Administration Transportation Totals: 2.7%5.3%3.8% Instruction Operations 9.4% Support 11.3% District Leadership 67.5% School Administrators Transportation
General Operating Budget: Expenditures By Object Code Category Amount Budgeted Percentage 72.8% 13.3% 2.4% 6.0% .2% 5.3% 100% Salaries and Benefits $125,418,232 $22,903,190 $4,127,971 $10,229,306 $432,801 $9,069,240 $172,180,740 Contracted/Purchased Services Energy Services(Fuel/Utilities) Materials and Supplies Capital Outlay Other Totals: 5.3% 0.3% 6.0% Salaries & Benefits 2.4% Contracted/Purchased Services Energy Services 13.3% Materials and Supplies 72.8% Capital Outlay Other
Special Revenue Funds (Includes Food Service, Federal Programs and CARES Act) Category Food Service Federal Programs Higher Education Relief ESSER II American Rescue Plan Other American Rescue Plan Totals: Fund 410 420 441 443 445 446 Amount Budgeted $8,043,068 $8,914,184 $89,588 $291,120 $7,906,704 $559,431 $25,804,095
Debt Service Budget LEASE PURCHASE (COPS) 2015 Borrowed $26,100,000 for construction of Walton Middle School Matures in 2035 Interest rate - 3.45% Debt Service Payments- 23/24 Principal Balance-June 30, 2024 LEASE PURCHASE (COPS) 2017 Borrowed $36,580,000 for construction of Dune Lakes Elementary School Matures in July, 2037 Interest Rate 3.32% Debt Service Payments- 23/24 Principal Balance- June 30, 2024 $2,092,000 $17,375,000 $2,852,250 $26,805,000 LEASE PURCHASE (COPS) 2022 Borrowed $77,745,000 for construction of Freeport Middle School at Hammock Bay Matures in July, 2040 Interest Rate 3.41% Debt Service Payments- 23/24 Principal Balance- June 30, 2024 $5,779,250 $72,010,000 Total Debt Service Obligation for 23/24 $10,723,500
Capital Outlay Budget Revenues & Appropriations Proposed FY 2023-24 Fund Source Taxable Value Collections Millage Rate Total Revenues LCIF (Local) $46,385,960,816 x 0.96 x 1.393 = $62,031,018 Charter School Capital Outlay (Fund 397) CO & DS (Capital Outlay & Debt Service-Fund 360) $337,539 $409,000 TOTAL REVENUES $62,777,557 Transfer to General Operating: (Maintenance Salaries, Property / Casualty Insurance, Charter School Capital Outlay) Debt Service Total Transfers $3,237,539 $10,730,342 $13,967,881 LCIF Appropriations Balance ($62,031,018 - $13,630,342) $48,400,676 TOTAL APPROPRIATIONS $62,777,557
Capital Outlay Projects: Proposed BudgetFY 2023 - 2024 Revenues Budgeted Amount Fund 370-Local Capital Improvement $62,031,018.00 TOTAL REVENUES $62,031,018.00 Appropriations Budgeted Amount Transfer to General $2,900,000.00 Debt Service/Lease Purchase-COPS $10,730,342.13 Charter School Local Millage Share $627,954.45 Technology Equipment (Schools) $3,600,000.00 Buses/Motor Vehicles $1,200,000.00 General Maintenance $1,100,000.00 District Equipment $400,000.00 Carpet/Flooring $640,000.00 $750,000.00 Freeport Elementary Classroom Addition $1,000,000.00 Freeport Middle School at Hammock Bay $11,024,851.40 District Office $1,000,000.00 Freeport High Master Plan & Athletic Complex
Appropriations (continued) Budgeted Amount ECTC Nursing (TRIUMPH) $500,000.00 Old Freeport Middle School Renovation $2,200,000.00 Furniture Refresh $600,000.00 VRB HVAC/Addition $2,000,000.00 WMS Athletic Bathrooms/Concessions $200,000.00 New Freeport Elementary School $1,000,000.00 Portable/Storage Buildings $150,000.00 Ball Field/Playground Improvements $100,000.00 Safety / Security $950,000.00 $107,870.02 Irrigation/Landscaping/Site Improvement/Drainage Roof & HVAC Renovations $2,000,000.00 SWHS Athletic Complex/Addition Master Planning-South End Elementary $9,000,000.00 $250,000.00 Paxton Master Plan, Renovations, & Additions $7,300,000.00 MIC/STEAM $700,000.00 $62,031,018.00 TOTAL APPROPRIATIONS-23/24 Funds only
Fund Balance Comparison- Major Funds $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 General Fund Local Cap Imp 17/18 18/19 19/20 20/21 21/22 22/23
