Highlights of School Budget Process in Florida 2021-2022

Final Budget Hearing Fiscal Year 2021-2022 Thursday, September 16, 2021 Stephanie Hofheinz, Chief Financial Officer HofheinzS@Walton.k12.fl.us 850-892-1100, ext. 1346

Florida Department of Revenue: Budget Calendar Timeline 2021-22 Monday, July 1, 2021-Certification of Taxable Value from Property Appraiser Monday, July 19, 2021- Received Required Local Effort millage and State FEFP Revenue numbers from the Florida Department of Education. (2ndFEFP Calculation) Thursday, July 22, 2021 Superintendent Hughes officially submits the proposed tentative budget for 2021-22 and corresponding advertisements to the Board for approval. Wednesday, July 28, 2021-The tentative budget and required advertisements published in the DeFuniak Herald Breeze. Submission deadline by noon on Monday, July 26th. Monday, August 2, 2021 @ 5:05 PM-Public hearing on the 21/22 Tentative Budget and Millage and Special Meeting to Adopt Tentative Budget, Millage Rate and Resolution. Thursday, September 16, 2021 @ 5:05 PM-Public Hearing on the Final Millage and Budget for fiscal year 2021-22. Friday, September 17, 2021- Resolution to Tax Collector, Property Appraiser, and the Department of Revenue. Budget documents to be uploaded and sent to DOE by this date. Friday, October 15, 2021 - TRIM Compliance package due to Department of Revenue

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 1stof 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 1stCertification of Taxable Values.

2021-2022 Tentative Budget by Fund FUND FUND DESCRIPTION TENTATIVE BUDGET (Including Fund Balance) $168,165,926 $4,660,981 $17,530,560 GENERALFUND OPERATINGBUDGET FOOD SERVICE RESTRICTED FOR FOOD SERVICE FEDERAL RESTRICTED FOR SPECIFIED PURPOSES (FEDERAL GRANTS) $5,089,580 DEBT SERVICE RESTRICTEDFOR DEBT SERVICE PAYMENTS (COPS) $75,780,073 CAPITAL PROJECTS RESTRICTED FOR MAINTENANCE,RENOVATION, CONSTRUCTION, & TECHNOLOGY $270,227,120 TOTALTENTATIVE BUDGET:

5 5- -Year Trend Data Year Trend Data Fund 16-17 17-18 18-19 19-20 20-21 21-22 General Fund 79.6M 82.6M 90.4M 139.2M 154.9M 168.2M Food Service 3.1M 3.2M 3.4M 3.9M 4.2M 4.6M Federal 5.3M 5.7M 5.9M 6.5M 8.9M 17.5M Debt Service 5.6M 5.5M 6.9M 6.2M 5.1M 5.1M Capital Projects 43.8M 46.5M 59.3M 66.6M 75.6M 75.8M Totals 137.4M 143.5M 165.9M 222.5M 248.8M 270.2M

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 increased by 14.7% and tax collections are budgeted 8% higher than the 20/21 FY. Projected increase of $9.4 Million in Revenue. Required Local Effort Millage certified by the Department of Revenue and calculated by the Department of Education. 21/22 RLE-2.143, down from 2.434 for 20/21, reduction of .291 mills or 12%. Includes continuation of funding for the Teacher Salary Increase Allocation: $1,930,037. 10% increase over last FY allocation. 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.

Budget Highlights Budget includes Salaries and Benefits for additional instructional personnel needed to accommodate growth throughout Walton County as well as our growing ESE and ESOL student populations. Retirement rate increase of almost 1% for regular employees, effective July 1, 2021 Health Insurance rate increase of 5.07%, effective October 1, 2021 Budgeted increases for both fuel and utilities PAEC Risk Management Insurance Program increase due to rising property casualty insurance costs. Increase of 13.97% from 20/21 assessments Additional Instructional Materials funds budgeted in order to fund textbooks and supplemental materials and curriculum to move us 4wRd to #1!!

Budget Highlights Budget includes a 96% increase in Federal Funding due to ESSER II and other CARES Act grants Capital Projects budgets include major construction projects at Freeport Elementary, Freeport Transportation, MIC School at St. Joe/STEAM, and ECTC HVAC and Welding project. New project categories include Paxton Master Planning and Improvements and Furniture Refresh at West DeFuniakand Maude Saunders Elementary Schools Continuing to focus on School Safety with the continuation of the Guardian Program, expanded SRO presence and security and fencing projects throughout the District Final Budget includes increases to minimum wage to $10.00 per hour as well as Substitute teacher increases per hour and for varying degree levels.

Millage Proceeds By Type Millage Type Certified Taxable Value: Mills Proceeds $27,089,595,978 Operating Required Local Effort 2.143 Discretionary Voted Mill Levy @96% $55,730,884 $19,452,497 $13,003,006 $88,186,387 0.748 0.500 3.391 Capital Outlay 1.393 $36,226,375 TOTALS: 4.784 $124,412,762

Comparison of Millage Rates 16-17 17-18 18-19 Comparison of Millage Rates Operating 19-20 20-21 21-22 Millage Change 0.291 0.000 0.000 0.291 0.000 0.291 RLE 2.550 0.748 0.500 3.798 1.393 5.191 2.456 0.748 0.500 3.704 1.393 5.097 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 Disc. Mill Capital Outlay Totals Current Year state law rolled-back rate 2.1985 Current Year local board rolled-back rate 2.2737 Total rolled-back rate 4.4722 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) When the tax base increases, the rolled-back rate is less than the prior year s rate. 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 .564 MILLS, 11%. THIS RESULTED IN LESS TAXES PAID BY PROPERTY OWNERS.

Millage Rate Comparison 1000 900 879 800 829 700 Property Tax 600 627 591 500 507 478 400 380 358 300 200 254 240 100 127 120 0 50K 75K 100K 125K 150K 200K Taxable Value of Home FY 20-21 FY 21-22

General Operating Budget: Revenue Sources Source Amount Budgeted Percentage Federal $655,000 .60% State $18,804,672 16.73% Local $91,745,163 82.67% 0.60% 16.73% 82.67% Federal State Local

General Operating Budget: Expenditures By Function Category Amount Budgeted Percentage 64.7% 11.8% 9.5% 3.6% 5.8% 4.6% 100% Instruction $80,375,952 $14,599,939 $11,817,525 $4,534,624 $7,171,875 $5,669,518 $124,169,343 Operations Support District Leadership School Administration Transportation Totals: 5.8%4.6% 3.6% Instruction Operations 9.5% Support District Leadership 11.8% 64.7% School Administrators Transportation

General Operating Budget: Expenditures By Object Code Category Amount Budgeted Percentage 74.6% 14.3% 2.6% 5.2% .5% 2.8% 100% Salaries and Benefits $92,679,385 $17,690,821 $3,194,023 $6,496,922 $649,391 $3,458,801 $124,169,343 Contracted/Purchased Services Energy Services(Fuel/Utilities) Materials and Supplies Capital Outlay Other Totals: 5.2% 2.8% 0.5% Salaries & Benefits 2.6% Contracted/Purchased Services 14.3% Energy Services Materials and Supplies 74.6% Capital Outlay Other

Special Revenue Funds (Includes Food Service, Federal Programs and CARES Act) Category Food Service Federal Programs ESSER I Other CARES Act Relief ESSER II Totals: Fund 410 420 441 442 443 Amount Budgeted $4,660,981 $7,167,618 $1,807,452 $71,472 $8,484,018 $22,191,541

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- 21/22 Principal Balance-June 30, 2022 $2,090,250 $19,650,000 Borrowed $36,580,000 for construction of Dune Lakes Elementary School Matures in July, 2037 Interest Rate 3.32% Debt Service Payments- 21/22 Principal Balance- June 30, 2022 Total Debt Service Obligation for 21/22 LEASE PURCHASE (COPS) 2017 $2,851,000 $29,615,000 $5,089,580

Capital Outlay Budget Revenues & Appropriations Proposed FY 2021-22 Fund Source Taxable Value Collections Millage Rate Total Revenues LCIF (Local) $ 27,089,595,978 x 0.96 x 1.393 = $36,226,375 Charter School Capital Outlay CO & DS (Capital Outlay & Debt Service) $345,000 $326,000 TOTAL REVENUES $36,897,375 Transfer to General Operating: (Maintenance Salaries, Property / Casualty Insurance, Charter School Capital Outlay) Debt Service Total Transfers $3,226,000 $4,947,580 $7,847,580 Appropriations Balance ($36,226,375 - $ 7,847,580) $28,378,795 TOTAL APPROPRIATIONS $36,897,375

Capital Outlay Projects: Proposed BudgetFY 2021 - 2022 Revenues Budgeted Amount Fund 370-Local Capital Improvement $36,226,375.00 TOTAL REVENUES $36,226,375.00 Appropriations Budgeted Amount Transfer to General $2,900,000.00 Debt Service/Lease Purchase-COPS $4,947,580.31 Technology Equipment (Schools) $2,500,000.00 Buses/Motor Vehicles $1,200,000.00 General Maintenance (No PECO for 21/22) $950,000.00 District Equipment $500,000.00 Carpet/Flooring $600,000.00 $7,500,000.00 Freeport Classroom Addition $50,000.00 HVAC Controls

Appropriations (continued) Budgeted Amount ECTC Welding/HVAC Project (TRIUMPH) $1,000,000.00 Irrigation & Landscaping $25,000.00 Furniture Refresh $500,000.00 HVAC-VRB $1,700,000.00 Walton Middle School - Athletic Bathrooms/Concessions Emerald Coast Middle School- Athletic Bathrooms/Concessions $75,000.00 $75,000.00 Portable Buildings $150,000.00 Freeport Transportation $500,000.00 Safety / Security $950,000.00 Site Improvements / Drainage $100,000.00 Roof Renovations $4,000,000.00 SWHS Athletic Complex $2,000,000.00 MAGNET Innovation Center (STEAM) $1,500,000.00 Paxton Master Plan, Renovations, & Additions $200,000.00 Land Acquisitions $2,303,794.69 $36,226,375.00 TOTAL APPROPRIATIONS-21/22 Funds only

Fund Balance Comparison- Major Funds $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 General Fund Local Cap Imp 16/17 17/18 18/19 19/20 20/21

QUESTIONS OR COMMENTS?