District 11 approves budget for 2010-2011

Anoka-Hennepin School District 11 personnel passionately state its
mission as one “to effectively educate each of our students for
success.”

by Sue Austreng
Staff Writer

Anoka-Hennepin School District 11 personnel passionately state its mission as one “to effectively educate each of our students for success.”

Toward that lofty end, human and financial resources are subsequently allocated in each school year’s budget to achieve that mission and the goals of the district.

At its regular June 28 meeting, the Anoka-Hennepin School Board unanimously accepted the proposed budget for the coming 2010-2011 school year.

“(The budget) represents a delicate balance between the educational needs of the students and the ability of the community to provide the necessary financial support,” said Chief Financial Officer Michelle Vargas as she presented the budget.

As approved, total district budget revenues come in at $468,104,321, or .5 percent greater than the 2009-2010 budget.

But total expenditures are $515,641,123, an increase of 5.31 percent from the previous fiscal year.

That means that the projected fund balance of $102,543,838 is anticipated to dip to $55,007,036 by June 30, 2011.

The total revenue figure reflects a general fund increase of $2.6 million and a community service fund decrease of $850,000.

The district’s total revenues break down like this:

• $309,230,111 (or 66 percent) in state revenue.

• $98,937,911 (or 21 percent) in property tax.

• $20,919,315 (or 5 percent) in federal revenue.

• $13,916,371 (or 3 percent) in local sales and transfers.

• $25,100,614 (or 5 percent) in other local revenue.

According to Vargas, while general fund expenditures will decrease by $1.8 million, debt service will increase $27,010,833 because of a crossover payment and the trust fund expenditures will increase $1,560,000 due to OPEB (other post-employment benefits).

The district’s total expenditures break down like this:

• $266,140,890 (or 52 percent) in salaries.

• $81,684,163 (or 16 percent) in benefits.

• $71,591,242 (or 14 percent) in debt service.

• $52,492,606 (or 10 percent) in purchased services.

• $27,307,239 (or 5 percent) in supplies.

• $13,496,334 (or 3 percent) in capital expenditures.

• $2,928,650 in other expenditures.

From numbers released June 28, projected fund balances and proposed fiscal year 2011 revenues and expenditures for each fund in the budget look like this:

General fund

• July 1, 2010 projected fund balance: $39,791,534.

• Proposed fiscal year 2011 revenues: $403,640,327.

The general fund revenue shows an increase of $2,664,113 or .7 percent.

Revenues by source include 75 percent from state aid, 19 percent from property taxes, 4 percent from federal revenue and 2 percent from local sales and other local revenue.

• Proposed fiscal year 2011 expenditures: $402,898,810.

General fund expenditures include 62 percent for salaries, 19 percent for benefits, 12 percent for purchased services (utilities, buses, etc.), 4 percent for supplies and 3 percent for other expenditures.

• June 30, 2011 projected fund balance: $40,533,060.

Food service fund

• July 1, 2010 projected fund balance: $4,307,853.

• Proposed fiscal year 2011 revenues: $18,441,523.

Those revenues include 58 percent from local sales, 38 percent from federal revenue, 4 percent from state revenue and other local revenue.

• Proposed fiscal year 2011 expenditures: $20,063,551.

Food service expenditures include 47 percent for supplies, 39 percent for salaries and benefits, 12 percent for capital expenditures and 2 percent for purchased services and other expenses.

• June 30, 2011 projected fund balance: $2,685,825.

Community service fund

• July 1, 2010 projected fund balance: $3,565,363.

• Proposed fiscal year 2011 revenues: $18,564,991.

Community service fund revenues include 55 percent in local revenue, 26 percent from the state, 18 percent in property taxes and 1 percent in federal revenue.

• Proposed fiscal year 2011 expenditures: $18,560,465.

Community service expenditures include 78 percent for salaries and benefits, 14 percent for purchased services, 7 percent for supplies and 1 percent for capital expenditures.

• June 30, 2011 projected fund balance: $3,569,889.

Capital projects fund

• July 1, 2010 projected fund balance: minus $637,696.

• Proposed fiscal year 2011 revenues: $1,983,345.

Capital projects fund revenues are increasing by $157,000, Vargas said, because of an increase in additional approved projects.

• Proposed fiscal year 2011 expenditures: $1,345,649.

Expenditures are decreasing by $480,000. That reduction is to eliminate the negative fund balance from projects completed early. Also, planned projects of $1.3 million will be completed.

With all that in place, the fund balance is projected to be at zero June 30, 2011.

Debt service fund

• July 1, 2010 projected fund balance: $52,769,645.

• Proposed fiscal year 2011 revenues: $25,269,135.

This revenue is increasing by $223,000, Vargas said, from increased debt service payments.

• Proposed fiscal year 2011 expenditures: $70,587,657.

Expenditures are increasing by $27,000,000 because of a refunding crossover payment of $45,000,000 to pay off 2001A bonds. That payment is funded by an escrow account established when the refunding bonds were sold, Vargas said.

• June 30, 2011 projected fund balance: $7,451,123.

That figure reflects a decrease of $45,000,000 due to an escrow account fully depleted when the February 2011 crossover occurs, Vargas said.

Trust fund

• July 1, 2010 projected fund balance: $2,747,139.

• Proposed fiscal year 2011 revenues: $205,000 (remains static).

• Proposed fiscal year 2011 expenditures: $2,185,000.

Expenditures increase by $1.6 million due to the annual OPEB trust payments, said Vargas.

• June 30, 2011 projected fund balance: $767,139.

While the school board unanimously adopted the 2010-2011 budget June 28, it can be amended by subsequent board action as actual numbers come in during the coming school year.

Sue Austreng is at sue.austreng@ecm-inc.com

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