Anoka-Hennepin Independent School District No. 11 Anoka

Transcription

Anoka-Hennepin Independent
School District No. 11
Anoka, Minnesota
Comprehensive Annual Financial Report
for the Fiscal Year Ended June 30, 2015,
and Independent Auditors’ Report
Prepared by: Business Services
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2015
ANOKA-HENNEPIN
INDEPENDENT SCHOOL DISTRICT NO. 11
ANOKA, MINNESOTA
2727 North Ferry Street
Anoka, MN 55303
Prepared by
Business Services
Michelle Vargas  Chief Financial Officer
John Koehler  Director of Finance
THIS PAGE INTENTIONALLY LEFT BLANK
Table of Contents
Page
SECTION I – INTRODUCTORY SECTION
Organizational Chart
School Board and Administration
Letter of Transmittal
Certificate of Excellence in Financial Reporting
Certificate of Achievement for Excellence in Financial Reporting
Map of School District
i
ii
iii–vii
viii
ix
x
SECTION II – FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS
4–15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Reconciliation of the Balance Sheet to the Statement of Net Position
Statement of Revenue, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of Revenue, Expenditures, and Changes
in Fund Balances to the Statement of Activities
Statement of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual – General Fund
Internal Service Funds
Statement of Revenue, Expenses, and Changes in Net Position
Statement of Cash Flows
Fiduciary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
Notes to Basic Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Defined Benefit Pension Plans – GERF/TRA Retirement Funds
Schedule of District’s and Non-Employer Proportionate Share of Net
Pension Liability
Schedule of District Contributions
Other Post-Employment Benefits Plan
Schedule of Funding Progress
Schedule of Employer Contributions
16
17
18–19
20
21–22
23
24
25
26
27
28
28
29–57
58
59
60
60
Table of Contents (continued)
Page
SUPPLEMENTAL INFORMATION
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
General Fund
Comparative Balance Sheet
Schedule of Revenue, Expenditures, and Changes in Fund Balances –
Budget and Actual
Food Service Special Revenue Fund
Budget and Actual
Community Service Special Revenue Fund
Budget and Actual
Capital Projects – Building Construction Fund
Budget and Actual
Debt Service Fund
Balance Sheet by Account
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account –
Budget and Actual
Combining Statement of Net Position
Combining Statement of Revenue, Expenses, and Changes in Net Position
Combining Statement of Cash Flows
61
62
63
64–66
67
68
69
70
71
72
73
74–75
76
77
78–79
SECTION III – STATISTICAL SECTION (UNAUDITED)
Net Position by Component
Change in Net Position
Summary of Governmental Revenues by Source – Government-Wide
Summary of Governmental Expenses by Function – Government-Wide
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Summary of General Fund Changes
Summary of General Fund Revenue by Source
Summary of General Fund Expenditures by Function
80–81
82–83
84–85
86–87
88–89
90–91
92
93
94–95
Table of Contents (continued)
Page
SECTION III – STATISTICAL SECTION (UNAUDITED) (CONTINUED)
Summary of Special Revenue Funds – Revenues and Expenditures
Summary of Special Revenue Fund Balances
Schedule of Cost per Average Daily Membership
Unrestricted General Fund Balance – Compared to Annual Expenditures
Property Tax Levies and Collections
Summary of Delinquent Taxes Receivable
Assessed Value and Estimated Market Value of Taxable Property
Summary of Tax Rates
Principal Taxpayers
Taxable Values
Taxable Rates
Ratio of Net Bonded Debt Outstanding
Indirect Debt
Ratio of Annual Debt Service Expenditures for General Bonded Debt
to Total General Fund Expenditures
Outstanding Debt by Type
Debt Margin
Demographic and Economic Statistics
Demographic Statistics
Principal Employers
School Building Information
Full-Time Equivalents
96
97
98
99
100
101–102
103
104
105–106
107
108–109
110–111
112
113
114–115
116–117
118
119
120
121–122
123
SECTION I
INTRODUCTORY SECTION
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School Board and Administration
Year Ended June 30, 2015
SCHOOL BOARD
Position on June 30, 2015
Tom Heidemann
Marci Anderson
Bill Harvey
Jeff Simon
William Fields
Nicole Hayes
Chair
Vice Chair
Treasurer
Clerk
Director
Director
ADMINISTRATION
David Law
Jinger Gustafson
Jeff McGonigal
Mary Wolverton
Michelle Vargas
Joel VerDuin
Chuck Holden
Steve Kerr
Nicole Tuescher
Paul Cady
Superintendent
Associate Superintendent
Chief Financial Officer
Chief Technology and Information Officer
Chief Operations Officer
Executive Director of Community Education
Executive Director of Human Resources
General Counsel
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December 7, 2015
To the School Board, Citizens, and Employees
of Anoka-Hennepin Independent School District No. 11:
INTRODUCTION
Submitted herewith is the comprehensive annual financial report (CAFR) of Anoka-Hennepin
Independent School District No. 11 (the District) for the fiscal year ended June 30, 2015. The
organization, form, and contents of this report were prepared in accordance with the standards prescribed
by the Governmental Accounting Standards Board (GASB), the Association of School Business Officials
(ASBO) International, the Government Finance Officers Association (GFOA), the American Institute of
Certified Public Accountants, and the Minnesota Department of Education (MDE). It should be noted that
the two government-wide financial statements, the Statement of Net Position and the Statement of
Activities, do not contain the numerous columns for various funds that are found in the District’s fund
financial statements. These two statements consolidate much of the information contained in the fundbased financial statements into statements that answer the question: “Is the District better or worse off
financially than it was in the previous year?” A comparison of net position should help the reader in
answering that question. Also required as part of the required supplemental information by the current
reporting model is the Management’s Discussion and Analysis (MD&A), which allows the District to
explain, in layman’s terms, its financial position and results of operations of the past two fiscal years.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the District. We believe the data as presented is accurate,
in all material respects, and that it is presented in a manner designed to fairly set forth the financial
position and results of the District’s operations as measured by the financial activity of its various funds.
Furthermore, we believe that all disclosures necessary to enable the reader to gain a maximum
understanding of the District’s financial activity have been included.
In accordance with the reporting entity definition of the GASB, the District has included all of the
operations of the District for which it has oversight responsibility.
This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
The District’s MD&A can be found immediately following the independent auditor’s report.
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REPORTING ENTITY AND ITS SERVICES
The financial reporting entity includes all the funds of the primary government (the District). Component
units are legally separate entities for which the primary government is financially accountable. Based on
the criteria of GASB Statements, there are no entities considered to be component units which are
required to be presented in the District’s basic financial statements. The District itself is not a component
unit.
The District is an independent political subdivision of the state of Minnesota. The District is the second
largest school district in the state, with an average daily membership of 37,161 students in early childhood
special education, and kindergarten through Grade 12. The District comprises all or part of
13 municipalities encompassing 172 square miles. The District currently conducts programs at 38 sites,
including 5 high schools, 3 alternative high schools, 6 middle schools, and 24 elementary buildings. The
District’s buildings range in age from 13 to 112 years old. The District qualifies for alternative funding
which provides resources for the maintenance and upkeep of district facilities.
In addition to the regular kindergarten through Grade 12 programs, the District provides programs in the
areas of special education, limited English proficiency, and alternative education. Community education
programs are also provided.
The District’s governing body is the School Board, consisting of six members. School Board members are
elected by the citizenry of their respective election district to serve overlapping terms of office. Elections
are held on the first Tuesday in November of the odd-numbered years. The Superintendent of Schools is
the chief executive officer and is appointed by the School Board.
FINANCIAL INFORMATION
The District’s CAFR is prepared pursuant to School Board policy and Minnesota Statutes § 121.908,
Subd. 2 and 3. The audited CAFR is required to be filed with the MDE and the State Auditor by
December 31 of the subsequent fiscal year.
In 1976, Minnesota law established the requirement for the Uniform Financial Accounting and Reporting
Standards (UFARS) for Minnesota school districts (M.S.123B.77). The MDE implements and provides
the regulatory oversight of these standards.
INTERNAL CONTROL SYSTEM
The District’s management is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the District are protected from loss, theft, or misuse and to ensure that
adequate accounting data is compiled to allow for the preparation of the financial statements in
conformity with accounting principles generally accepted in the United States of America. We believe
that the District’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of all financial transactions. The concept of reasonable assurance
recognizes that the cost of these controls should not exceed the benefits. The evaluation of these costs and
benefits requires estimates and judgments by management.
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BUDGETARY CONTROLS
All financial transactions of the District are accounted for in specific funds. The accounting system
provides for complete, self-balancing accounts for each fund of the District. The system provides
budgetary control for activities of all governmental funds, thereby ensuring legal compliance. Debt
service requirements and project-length financial plans are adopted for the Capital Projects – Building
Construction Fund. The system also provides budgetary control at the sub-function level by the
encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
DEBT ADMINISTRATION
Total outstanding bonded debt of the District at June 30, 2015 amounted to $58,620,000. The bonds pay
interest at rates ranging from 1.35 percent to 5.50 percent and mature at various dates to the year 2030.
The District’s bonds have been rated Aa3 and AA- by Moody’s Investment Service and
Standard & Poor’s, respectively. In addition, the District participated in the Minnesota Credit
Enhancement Program, which improved the District’s underlying bond rating to Aa2 and AA+, as
measured by Moody’s Investment Service and Standard & Poor’s, respectively.
DISTRICT’S MISSION STATEMENT
On February 9, 2004, the District’s School Board adopted the following mission statement:
It is the primary mission of the Anoka-Hennepin School District to effectively educate each of our
students for success.
To fulfill this mission the District is accountable for:
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Providing a caring, highly trained, and effective staff who use research-based best practices
Providing learning opportunities that meet the individual learning needs of each student
Monitoring student achievement to maximize each student’s learning
Promoting high achievement for all students
Acknowledging parents’ roles as their children’s primary educators and partnering with them to
increase student success
Improving connections with the community to foster public involvement with and understanding
of our educational programs
Providing a safe and respectful learning environment
Using all resources efficiently and effectively
ENROLLMENT
The District continues to experience declining enrollment. Since 2008, the District has seen an enrollment
decline of 2,763 students in adjusted average daily membership (ADM) from 39,924 in 2008 to 37,161 in
2015. This has a direct effect on the District’s state aid which is based on a per pupil formula.
Enrollment projections are based on a multitude of data. The data points include building permits, live
births, census, and prior enrollment history. Projections are consistently within 1 percent of the projected
enrollment.
Although the final count for the 2014–2015 school year was a decline from the prior year, the District’s
October 1 enrollment for the fall of 2015 increased over the prior year by 78 students. This is the first
time the District has recorded an increase in enrollment since 2001. The District is experiencing growth
on the north side of the District. The District plans to reconvene a community Facility Use Task Force to
assess the growth and make recommendations to the School Board in the fall of 2016.
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Anoka‐Hennepin ISD 11
Average Daily Membership (ADM)
Students 37,095
37,142
37,167
37,161
37,280
37,470
37,728
38,058
38,809
40,000
39,225
39,924
45,000
35,000
30,000
25,000
20,000
Fiscal Year
ECONOMIC CONDITION AND OUTLOOK OF DISTRICT AND LOCAL ECONOMY
The local economy continues to improve. The housing market continues to rebound, as we see building
permits are on the rise in many of our communities. The City of Blaine is experiencing large pockets of
growth, of which a portion on the northern end is within the Anoka-Hennepin boundary. This area and the
cities of Ramsey and Andover are constantly being monitored for potential areas of growth. The
unemployment rate in Anoka County continues to be stable at 3.5 percent. The 3.5 percent rate in
August 2015 continues to hold lower than the national 5.1 percent rate, and the state 3.8 percent rate.
Overall, the outlook for the District is stable. Both cash and fund balance are firm. General Fund
unassigned fund balance (excluding restricted deficits) is also stable at 10.4 percent, and within School
Board policy to maintain a minimum of 5 percent of General Fund expenditures.
The District is now in the fourth year of an originally four-year plan of Strategic Investment which has
been extended through June 2019 with a recalculation after the state’s funding of all-day, every day
kindergarten. After six elementary additions in the summer of 2014, to make room for all-day, every day
kindergarten, the District constructed two more additions at Johnsville and Wilson elementary schools to
address the growth the District is experiencing in the Blaine and Ramsey attendance areas. These
additions are scheduled to be completed near the end of 2015, and were funded with lease levy and capital
fund balance reserves.
Although the District’s voters have given the District stability with ongoing referendum and technology
funding, we are still reliant on the state to provide stable and equitable funding for our learners. Recent
legislative sessions provided a 2 percent increase on the general education aid formula for the 2015–2016
and 2016–2017 fiscal years. Since the District relies heavily on state aid as a funding source, and the
increased funding is below our current budgetary and inflationary rate increase of 2.8 percent, future
budgetary reductions could be necessary. The School Board is committed to fiscal responsibility and
developing balanced budget plans to maintain a minimum 5 percent unassigned General Fund balance, as
adopted in School Board policy.
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INDEPENDENT AUDIT
The District has engaged the firm of Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) to
perform the annual audit of its basic financial statements. The auditor’s report on the District’s basic
financial statements is based on their audit in accordance with auditing standards generally accepted in
the United States of America and with Government Auditing Standards, issued by the Comptroller
General of the United States. The auditor’s unmodified report is included on pages 1 through 3 in the
financial section of this report.
In addition to meeting the District’s financial statement audit requirements, the District also engaged
MMKR to perform the audit of its federal grant programs in accordance with the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. The District’s federal grant programs are discussed in a report separate from the CAFR.
REPORTING ACHIEVEMENT
The Government Finance Officers Association and ASBO International awarded their Certificate of
Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June 30, 2014.
These awards are made only to governmental units that publish a CAFR that is easily readable, efficiently
organized, and conform to the program standards, as well as accounting principles generally accepted in
the United States of America and applicable legal requirements. We believe this report continues to meet
those standards and requirements.
ACKNOWLEDGEMENTS
We would like to thank the members of the School Board for their interest and support in planning and
conducting the financial operations of the District in a fiscally responsible and progressive manner.
Respectfully submitted,
David Law
Superintendent
Michelle E. Vargas
Chief Financial Officer
_______________________________________
John M. Koehler
Director of Finance
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Association of School Business Officials International The Certificate of Excellence in Financial Reporting Award
is presented to
Anoka-Hennepin Independent School District
No.11
For Its Comprehensive Annual Financial Report (CAFR)
For the Fiscal Year Ended June 30, 2014
The CAFR has been reviewed and met or exceeded
ASBO International’s Certificate of Excellence standards
Mark C. Pepera, MBA, RSBO, SFO
President
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John D. Musso, CAE, RSBA
Executive Director
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★
★
Crooked Lake
Andover
Washington
Campus
Anoka MS
Main Street (Cty Rd 242)
Bunker Lake Blvd.
★
Wilson
Anoka
Bridges
Andover
Oak View
Central Avenue (Hwy 65)
McKinley
Dayton
★
★
★
Johnsville
Blaine
Compass
Sandburg EC Programs
Sand Creek
Roosevelt
Lincoln
at Bell
Northdale
Anoka MS Morris Bye
Sorteberg
ECC
Jefferson
Fred Moore
Coon Rapids
Campus
Coon Rapids
Eisenhower
Hamilton
Hoover
Champlin-Brooklyn Park Academy Mississippi
River Trail Learning Madison
Oxbow Creek
Jackson
Center at LO Jacob
Champlin Park
University Avenue
Adams
Anoka-Hennepin
0
Regional
61
High School
Educational
Service Center
Franklin
Transition
Plus
Hwy 169
-xay
g
Hi
10
Monroe
Evergreen
Park
★ Riverview ECC
hw
Elementary School
Middle School
High School
★ Other Sites
★
Anoka-Hennepin
Technical
STEP Program High School
Ramsey
7
d4
Roa
nty
Cou
Rum River
ANOKA-HENNEPIN SCHOOLS
SECTION II
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
To the School Board and Management of
Independent School District No. 11
Anoka, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of Independent School District No. 11 (the District) as of
and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively
comprise the District’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the District’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
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OPINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the District as of June 30, 2015, and the respective changes in
financial position and, where applicable, cash flows thereof, and the budgetary comparison for the
General Fund for the year then ended, in accordance with accounting principles generally accepted in the
United States of America.
EMPHASIS OF MATTER
As described in Note 1 of the notes to basic financial statements, the District has implemented
Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial
Reporting for Pensions—an amendment of GASB Statement No. 27, during the year ended June 30, 2015.
Our opinion is not modified with respect to this matter.
These financial statements include restatements of beginning net position of governmental activities and
of beginning fund balance for the General Fund as disclosed in Note 1 of the notes to the basic financial
statements.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and the required supplementary information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the GASB, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, supplemental information,
and statistical section, as listed in the table of contents, are presented for purposes of additional analysis
and are not required parts of the basic financial statements.
The supplemental information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplemental
information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
(continued)
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The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Prior Year Comparative Information
We have previously audited the District’s 2014 financial statements, and we expressed unmodified audit
opinions on the respective financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information in our report dated December 9, 2014. In our opinion, the partial
comparative information presented herein as of and for the year ended June 30, 2014 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated December 7,
2015 on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control over
financial reporting and compliance.
Minneapolis, Minnesota
December 7, 2015
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Management’s Discussion and Analysis
This section of Independent School District No. 11’s (the District) comprehensive annual financial report
(CAFR) presents management’s narrative overview and analysis of the District’s financial performance
during the fiscal year ended June 30, 2015. Please read it in conjunction with the other components of the
District’s CAFR.
FINANCIAL HIGHLIGHTS
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The District’s assets and deferred outflows of resources exceeded its liabilities and deferred
inflows of resources at June 30, 2015 by $740,507 (net position). The District’s total net position
increased by $38,176,963 during the year ended June 30, 2015, excluding a change in accounting
principle and a prior period adjustment reported in the current year as discussed below.
The District recorded a change in accounting principle in the current year for reporting the
District’s participation in the Public Employees Retirement Association (PERA) and Teachers
Retirement Association (TRA) pension plans. This change reduced beginning net position in the
government-wide financial statements by $292,449,052.
The District reported a prior period adjustment in the current year to correct the recording of the
District’s portion of unearned revenue as it relates to employee health and dental insurance plans.
This change reduced beginning net position in the government-wide financial statements and fund
balance in the General Fund by $5,257,432.
Government-wide revenues totaled $507,459,978 and were $38,176,963 more than expenses of
$469,283,015.
The General Fund’s total fund balance (under the governmental fund presentation) increased
$9,770,768 from the prior year, compared to a $9,477,310 decrease planned in the budget, before
the prior period adjustment previously discussed.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of the CAFR consists of the following parts:
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Independent Auditor’s Report;
Management’s Discussion and Analysis;
Basic financial statements, including the government-wide financial statements, fund financial
statements, and the notes to basic financial statements;
Required supplementary information; and
Supplemental information consisting of combining and individual fund statements and schedules.
The following explains the two types of statements included in the basic financial statements:
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements (Statement of Net Position and Statement of Activities) report
information about the District as a whole using accounting methods similar to those used by private sector
companies. The Statement of Net Position includes all of the District’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, except for the fiduciary funds. All of the current
year’s revenues and expenses are accounted for in the Statement of Activities regardless of when cash is
received or paid.
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The two government-wide financial statements report the District’s net position and how it has changed.
Net position—the difference between the District’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources—is one way to measure the District’s financial health or position.
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Over time, increases or decreases in the District’s net position are indicators of whether its
financial position is improving or deteriorating, respectively.
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To assess the overall health of the District requires consideration of additional nonfinancial
factors such as changes in the District’s property tax base and the condition of school buildings
and other facilities.
In the government-wide financial statements the District’s activities are all shown in one category titled
“governmental activities.” These activities, including regular and special education instruction,
transportation, administration, food services, and community education, are primarily financed with state
aids and property taxes.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the District’s funds, focusing on
its most significant or major funds, rather than the District as a whole. Funds (Food Service Special
Revenue and Community Service Special Revenue) that do not meet the threshold to be classified as
major funds are called nonmajor funds. Detailed financial information for nonmajor funds can be found in
the supplemental information section.
Funds are accounting devices the District uses to keep track of specific sources of funding and spending
on particular programs. For Minnesota schools, funds are established in accordance with Uniform
Financial Accounting and Reporting Standards in accordance with statutory requirements and accounting
principles generally accepted in the United States of America.
The District maintains the following kinds of funds:
Governmental Funds – The District’s basic services are included in governmental funds, which
generally focus on: 1) how cash and other financial assets that can readily be converted to cash flow
in and out, and 2) the balances left at year-end that are available for spending. Consequently, the
governmental fund statements provide a detailed short-term view that helps to determine whether
there are more or less financial resources that can be spent in the near future to finance the District’s
programs. Because this information does not encompass the additional long-term focus of the
government-wide financial statements, we provide additional information (reconciliation schedules)
immediately following the governmental fund statements that explain the relationship (or differences)
between these two types of financial statement presentations.
Proprietary Funds – The District maintains one type of proprietary fund. The internal service funds
are used as an accounting device to accumulate and allocate costs internally among the District’s
various functions. The District uses its internal service funds to account for the self-insurance
activities of the district employees’ medical, dental, and workers’ compensation claims. These
services have been included within governmental activities in the government-wide financial
statements. Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
Fiduciary Funds – The District is the trustee, or fiduciary, for assets that belong to other
organizations. The District is responsible for ensuring that the assets reported in these funds are used
only for their intended purposes and by those to whom the assets belong. All of the District’s
fiduciary activities are reported in a separate Statement of Fiduciary Net Position and a Statement of
Changes in Fiduciary Net Position. We exclude these activities from the government-wide financial
statements because the District cannot use these assets to finance its operations.
-5-
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
Table 1 is a summarized view of the District’s Statement of Net Position:
Table 1
Summary Statement of Net Position
as of June 30, 2015 and 2014
2015
Assets
Current and other assets
Capital assets, net of depreciation
Total assets
Deferred outflows of resources
Pension plan deferments – PERA and TRA
Liabilities
Current and other liabilities
Long-term liabilities, including due within one year
Total liabilities
Deferred inflows of resources
Property taxes levied for subsequent year
Total deferred inflows of resources
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
2014
$
305,260,551
273,233,248
$
305,393,613
256,632,567
$
578,493,799
$
562,026,180
$
47,982,439
$
–
$
57,203,141
403,006,189
$
56,913,755
156,826,086
$
460,209,330
$
213,739,841
$
87,081,748
78,444,653
$
88,016,311
–
$
165,526,401
$
88,016,311
$
204,073,301
48,287,453
(251,620,247)
$
185,917,028
46,906,014
27,446,986
$
260,270,028
$
740,507
The District’s financial position is the product of many factors. For example, the determination of the
District’s net investment in capital assets involves many assumptions and estimates, such as current and
accumulated depreciation amounts. A conservative versus liberal approach to depreciation estimates, as
well as capitalization policies, will produce a significant difference in the calculated amounts. The other
major factor in determining net position as compared to fund balances is the liability for long-term
severance, pension, and other post-employment benefits (OPEB), which impacts the unrestricted portion
of net position.
Total net position decreased by $259,529,521, which reflects an increase of $38,176,963 from current
year operating results, while the change in accounting principle and prior period adjustment mentioned
earlier reduced unrestricted net position by $292,449,052 and $5,257,432, respectively. The change in
accounting principle for pensions significantly increased deferred outflows of resources, long-term
liabilities, and deferred inflows of resources, as presented in the table above.
-6-
The District’s increase in net investments in capital assets is due mostly to the District adding additional
capital assets and repaying debt at a faster rate than the assets being depreciated. An increase in net
position restricted for capital asset acquisition and community service contributed to the overall increase
in the restricted portion of net position. The decrease in unrestricted net position is a result of the change
in accounting principle and prior period adjustment previously discussed.
Table 2 presents a summarized version of the District’s Statement of Activities:
Table 2
Summary Statement of Activities
for the Years Ended June 30, 2015 and 2014
2015
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
General grants and aids
Other
Total revenues
$
Expenses
Administration
District support services
Elementary and secondary regular instruction
Vocational education instruction
Special education instruction
Instructional support services
Pupil support services
Sites and buildings
Fiscal and other fixed cost programs
Food service
Community service
Interest and fiscal charges on debt
Total expenses
Change in net position
Net position – beginning, as previously reported
Change in accounting principle
Prior period adjustment
Net position – beginning, as restated
Net position – ending
$
23,338,421
92,885,298
6,732,090
2014
$
26,216,477
87,883,921
5,944,277
93,008,570
282,002,635
9,492,964
507,459,978
65,546,513
294,389,000
6,052,228
486,032,416
11,029,312
12,153,009
196,696,425
10,048,896
82,481,544
38,907,381
39,106,800
33,843,024
885,282
19,963,114
20,049,915
4,118,313
469,283,015
10,133,357
11,726,589
196,952,338
9,138,680
82,942,593
33,232,797
38,509,921
33,547,953
1,053,303
18,488,692
19,602,487
4,243,607
459,572,317
38,176,963
26,460,099
260,270,028
(292,449,052)
(5,257,432)
(37,436,456)
233,809,929
–
–
233,809,929
740,507
$ 260,270,028
This table is presented on an accrual basis of accounting, and it includes all of the governmental activities
of the District. This statement includes depreciation expense, but excludes capital asset purchase costs,
debt proceeds, and the repayment of debt principal.
-7-
Figure A shows further analysis of these revenue sources:
Figure A – Sources of Revenues for Fiscal Years 2015 and 2014
The largest share of the District’s revenue is received from the state, including the general education aid
formula and most of the operating grants. This significant reliance on the state for funding has placed
pressure on local school districts as a result of limited funding increases in recent years.
Property taxes are generally the next largest source of funding. The level of revenue property tax sources
provide is not only dependent on district taxpayers by way of operating and building referenda, but also
by decisions made by the Legislature in the mix of state aid and local effort in a variety of funding
formulas.
The proportionate share of district revenue from these two sources may change significantly between
fiscal years, due to the “tax shift.” The tax shift is an accounting tool used on occasion to balance the state
budget, whereby districts recognize cash collections for the subsequent year’s property tax levy as current
year revenue, and the state adjusts aid payments to districts by an equal amount.
-8-
Figure B shows further analysis of these expense functions:
Figure B – Expenses for Fiscal Years 2015 and 2014
The District’s expenses are predominately related to educating students. Programs (or functions) such as
elementary and secondary regular instruction, vocational education instruction, special education
instruction, and instructional support services are directly related to classroom instruction, while the rest
of the programs support instruction and other necessary costs to operate the District.
-9-
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
The financial performance of the District as a whole is also reflected in its governmental funds. Table 3
shows the change in total fund balances of each of the District’s governmental funds:
Table 3
Governmental Fund Balances
as of June 30, 2015 and 2014
Major funds
General
Capital Projects – Building Construction
Debt Service
Nonmajor funds
Food Service Special Revenue
Community Service Special Revenue
Total governmental funds
2015
2014
$ 127,413,756
8,376,436
4,521,638
$ 122,900,420
13,208,350
4,668,104
4,853,627
4,480,433
6,523,035
4,188,056
$ 149,645,890
$ 151,487,965
Increase
(Decrease)
$
4,513,336
(4,831,914)
(146,466)
(1,669,408)
292,377
$
(1,842,075)
The focus of the District’s governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the District’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net
resources available for discretionary use as they represent the portion of fund balance which has not yet
been limited to use for a particular purpose by either an external party, the District itself, or a group or
individual that has been delegated authority to assign resources for use for particular purposes by the
District’s School Board.
At June 30, 2015, the District’s governmental funds reported combined fund balances of $149,645,890, a
decrease of $1,842,075 in comparison with the prior year. Approximately 29.0 percent of this amount
($43,470,447) constitutes unassigned fund balance, which is available for spending at the District’s
discretion. The remainder of the fund balance is either nonspendable, restricted, or assigned to indicate
that it is: 1) not in spendable form ($1,719,646), 2) restricted for particular purposes ($58,461,219), or
3) assigned for particular purposes ($45,994,578).
-10-
ANALYSIS OF THE GENERAL FUND
Table 4 summarizes the amendments to the General Fund budget:
Table 4
General Fund
Budget
Increase
(Decrease)
Percent Change
Original Budget
Final Budget
Revenue and other
financing sources
$ 442,979,708
$ 445,906,219
$
2,926,511
0.7%
Expenditures and other
financing uses
$ 443,844,515
$ 455,383,529
$
11,539,014
2.6%
The District is required to adopt an operating budget prior to the beginning of its fiscal year, referred to
above as the original budget. During the year, the District amended the budget for known significant
changes in circumstances such as: updated enrollment estimates, legislative changes, additional funding
received from grants or other local sources, staffing changes, employee contract settlements, insurance
premium changes, special education tuition changes, or for new debt issued.
Table 5 summarizes the operating results of the General Fund:
Table 5
General Fund
Operating Results
Over (Under)
Final Budget
Amount
Percent
2015 Actual
Revenue
$ 447,573,096
3,586,422
0.8%
432,442,276
(14,142,100)
(3.2%)
Excess (deficiency) of revenue
over expenditures
15,130,820
17,728,522
8,017,020
Net other financing sources (uses)
(5,360,052)
1,519,556
(5,030,158)
Expenditures
Net change in fund balances
$
9,770,768
$
Over (Under)
Prior Year
Amount
Percent
$ 19,248,078
$ 21,950,757
5.2%
13,933,737
3.3%
$
2,986,862
The fund balance of the General Fund increased $9,770,768, compared to a planned spenddown of
$9,477,310 approved in the budget, which excludes the prior period adjustment reported in the current
year.
-11-
General Fund revenues for 2015 increased $21,950,757, or 5.2 percent, from the prior year and were
$3,586,422, or 0.8 percent, over budget. The increase over prior year was due in part to improvements in
funding for general education, compensatory, and special education revenue sources. The revenue budget
was within 1 percent as noted above. Conservative budgeting for other local sources and state special
education funding contributed to the favorable revenue variance.
General Fund expenditures for 2015 increased $13,933,737, or 3.3 percent, from the prior year and were
$14,142,100, or 3.2 percent, under budget. The increase was largely for personnel costs as contractually
approved along with an increase for all-day kindergarten recorded in the General Fund in the current year.
Capital expenditures also increased as a result of new spending for furniture purchases at elementary
schools and district-wide upgrades for wired and wireless data and Internet access. The expenditure
variance was spread across several programs and object categories of the General Fund. Elementary and
secondary regular instruction, special education instruction, and instructional support services
experienced the largest program variances, with savings of $7.8 million, $2.5 million, and $3.9 million,
respectively. This was due mostly to staff development carryovers, building carryovers, and increased
savings due to conservative management of allocated budgets and underspending for contracted services.
COMMENTS ON SIGNIFICANT ACTIVITIES IN OTHER FUNDS
The Capital Projects – Building Construction Fund expenditures were more than revenues and other
financing sources, reducing fund balance by $4,831,914, which was $3,922,926 less than the spend down
projected in the budget for the current year. The District has $8,376,436 of resources remaining in this
fund as of June 30, 2015 to finance various district projects. The District issued $8,985,000 of certificates
of participation to finance several projects at the District, primarily to fund additions at two elementary
schools in the District. Ongoing expenditures also relate to the Alternative Facilities Program, which
finances deferred maintenance projects of the District.
Debt Service Fund
The Debt Service Fund expenditures exceeded revenues by $146,466 in the current year. The funding of
debt service is controlled in accordance with each outstanding debt issue’s financing plan. The remaining
fund balance of $4,521,638 at June 30, 2015 is available for meeting future debt service obligations.
Internal service funds are used to account for the financing of goods and services provided by one
department or agency of a government to other departments or agencies on a cost reimbursement basis.
The District currently maintains three internal service funds. These funds are used to account for the
District’s self-insured dental, health benefits, and workers’ compensation insurance functions.
Operating revenues for the internal service funds for fiscal 2015 totaled $55,651,901. This is a decrease
from the fiscal year 2014 operating revenue level of $57,645,648. Nonoperating revenues totaled $14,397,
which is an increase from the fiscal year 2014 nonoperating revenue of $7,122. Operating expenses
totaled $52,832,800, which represents a decrease from fiscal year 2014 operating expenditures of
$55,883,545.
The net position balance for all internal service funds as of June 30, 2015 was $11,922,166, which
represents a $2,833,498 increase from the prior year.
-12-
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital Assets
Table 6 shows the District’s capital assets, together with changes from the previous year. The table also
shows the total depreciation expense for fiscal years ending June 30, 2015 and 2014:
Table 6
Capital Assets
Land
Construction in progress
Land improvements
Buildings
Furniture and equipment
Less accumulated depreciation
Total
Depreciation expense
2015
2014
Change
$ 10,231,246
40,466,580
23,964,490
366,252,798
37,847,447
(205,529,313)
$ 10,285,676
16,724,935
23,869,839
366,274,451
38,029,213
(198,551,547)
$
$ 273,233,248
$ 256,632,567
$ 16,600,681
$ 10,816,300
$ 11,116,486
$
(54,430)
23,741,645
94,651
(21,653)
(181,766)
(6,977,766)
(300,186)
By the end of 2015, the District had invested in a broad range of capital assets, including school
buildings, athletic facilities, and other equipment for various instructional programs (see Table 6).
The changes presented in the table above reflect the ongoing activity and completion of projects at district
sites during fiscal year 2015, consistent with the activity of the Capital Projects – Building Construction
Fund discussed on the previous page.
The District defines capital assets as those with an initial, individual cost of $3,000 or more, which benefit
more than one fiscal year.
Additional details about capital assets can be found in Note 3 of the notes to basic financial statements.
-13-
Long-Term Liabilities
Table 7 illustrates the components of the District’s long-term liabilities with changes from the prior year:
Table 7
Outstanding Long-Term Liabilities
2015
General obligation bonds
Certificates of participation
Unamortized premium/discount
Capital leases
Special assessments
Net pension liability – PERA*
Net pension liability – TRA*
Compensated absences
Severance
Net OPEB obligations
Total
$
2014
58,620,000
33,880,000
4,372,698
3,506,343
86,760
54,660,098
202,536,867
4,682,467
34,960,000
5,700,956
$
$ 403,006,189
75,885,000
24,895,000
4,760,799
4,383,507
106,040
–
–
4,114,784
37,854,000
4,826,956
$ 156,826,086
Change
$ (17,265,000)
8,985,000
(388,101)
(877,164)
(19,280)
54,660,098
202,536,867
567,683
(2,894,000)
874,000
$ 246,180,103
*Reflects current year change in accounting principle; prior year balances were not restated.
The District issued certificates of participation totaling $8,985,000 in the current year to finance
expansions at elementary sites, as previously discussed. Scheduled debt repayments in the current year
reduced the District’s general obligation bonds outstanding as of June 30, 2015.
As previously discussed, the District recorded a change in accounting principle in the current year for
reporting the District’s participation in the PERA and TRA pension plans. Information needed to restate
previous periods was not readily available; therefore, prior period amounts were not restated.
The state limits the amount of general obligation debt the District can issue to 15 percent of the market
value of all taxable property within the District’s corporate limits (see Table 8):
Table 8
Limitations on Debt
District’s market value
Limit rate
$ 17,363,954,200
15.0%
Legal debt limit
$ 2,604,593,130
Additional details of the District’s long-term debt activity can be found in Note 4 of the notes to basic
financial statements.
-14-
FACTORS BEARING ON THE DISTRICT’S FUTURE
With the exception of the voter-approved operating referendum, the District is dependent on the state of
Minnesota for a majority of its revenue authority. Recent experience demonstrates that legislated revenue
increases have not been sufficient to meet instructional program needs and increased costs due to
inflation.
The general education program is the method by which school districts receive the majority of their
financial support. This source of funding is primarily state aid and, as such, school districts rely heavily
on the state of Minnesota for educational resources. In the 2015 fiscal year, several funding and pupil
weighting changes went into effect, which included an equivalent increase of $105, or 2.0 percent, for the
basic general education formula funding. The Legislature has added $117, or 2.0 percent, per pupil to the
formula for fiscal year 2016 and an additional $119, or 2.0 percent, per pupil to the formula for fiscal year
2017. The ongoing demands on limited resources continue to present challenges in funding education for
Minnesota schools.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This CAFR is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the District’s finances and to demonstrate the District’s accountability for the money
it receives. If you have questions about this report or need additional financial information, contact the
Business Services Office, Anoka-Hennepin Independent School District No. 11, Educational Service
Center, 2727 North Ferry Street, Anoka, Minnesota 55303.
-15-
BASIC FINANCIAL STATEMENTS
as of June 30, 2015
(With Partial Comparative Information as of June 30, 2014)
Governmental Activities
2015
2014
Assets
Cash and temporary investments
Receivables
Current taxes
Delinquent taxes
Accounts and interest
Due from other governmental units
Due from external parties
Inventory
Prepaid items
$
Restricted assets – temporarily restricted
Cash and investments for debt service
Cash and investments for capital asset acquisition
Total restricted assets – temporarily restricted
Capital assets
Not depreciated
Depreciated, net of accumulated depreciation
Total capital assets, net of accumulated depreciation
Total assets
Deferred outflows of resources
Total assets and deferred outflows of resources
Liabilities
Salaries payable
Accounts and contracts payable
Accrued interest payable
Due to other governmental units
Unearned revenue
Claims incurred but not reported
51,751,147
1,547,916
585,019
44,795,336
709,048
1,448,389
271,257
51,724,094
2,039,711
814,275
43,771,207
–
1,516,485
292,279
251,483
12,326,048
12,577,531
924,326
19,918,274
20,842,600
50,697,826
222,535,422
273,233,248
27,010,611
229,621,956
256,632,567
578,493,799
562,026,180
47,982,439
–
$
562,026,180
$
16,043,794
19,512,887
1,726,961
1,910,175
9,798,338
8,210,986
$
17,473,631
22,877,120
1,603,049
2,111,941
2,668,107
10,179,907
Net position
Restricted for
Capital asset acquisition
Debt service
Food service
Community service
Other purposes (state funding restrictions)
Unrestricted
Total net position
$
-16-
184,392,962
626,476,238
Total liabilities
See notes to basic financial statements
$
$
Long-term liabilities
Due within one year
Due in more than one year
Total long-term liabilities
Total liabilities, deferred inflows of resources, and net position
191,574,908
20,882,539
382,123,650
403,006,189
27,436,989
129,389,097
156,826,086
460,209,330
213,739,841
87,081,748
78,444,653
165,526,401
88,016,311
–
88,016,311
204,073,301
185,917,028
23,473,720
3,317,810
4,853,627
4,517,287
12,125,009
(251,620,247)
740,507
19,565,045
4,340,876
6,523,035
4,236,186
12,240,872
27,446,986
260,270,028
626,476,238
$
562,026,180
Statement of Activities
(With Partial Comparative Information for the Year Ended June 30, 2014)
2015
Functions/Programs
Governmental activities
Administration
Elementary and secondary
regular instruction
Vocational education
instruction
Sites and buildings
Fiscal and other fixed cost
programs
Food service
Community service
Interest and fiscal charges
Total governmental activities
Expenses
$ 11,029,312
12,153,009
Net (Expense)
Revenue and
Changes in
Net Position
2014
Net (Expense)
Revenue and
Changes in
Net Position
Governmental
Activities
Governmental
Activities
237,623
262,724
$ (10,740,403)
(11,529,405)
$ (9,900,482)
(11,207,759)
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions
$
14,320
336,648
$
36,966
24,232
$
196,696,425
3,304,546
16,923,675
4,257,367
(172,210,837)
(173,330,927)
10,048,896
82,481,544
38,907,381
39,106,800
33,843,024
86,209
113,578
7,018
219,969
–
997,114
56,380,101
194,123
2,460,426
84
203,131
1,771,245
–
–
–
(8,762,442)
(24,216,620)
(38,706,240)
(36,426,405)
(33,842,940)
(8,084,804)
(27,969,828)
(33,086,405)
(33,681,454)
(33,541,893)
885,282
19,963,114
20,049,915
4,118,313
–
8,156,347
11,099,786
–
–
10,124,665
5,743,912
–
–
–
–
–
(885,282)
(1,682,102)
(3,206,217)
(4,118,313)
(1,053,303)
(372,505)
(3,054,675)
(4,243,607)
$ 469,283,015
$ 23,338,421
$ 92,885,298
$ 6,732,090
(346,327,206)
(339,527,642)
69,686,390
3,062,787
20,259,393
282,002,635
8,299,198
1,060,004
133,762
384,504,169
41,212,655
1,579,792
22,754,066
294,389,000
5,944,568
–
107,660
365,987,741
38,176,963
26,460,099
260,270,028
(292,449,052)
(5,257,432)
(37,436,456)
233,809,929
–
–
233,809,929
General revenues
Taxes
Property taxes, levied for general purposes
Property taxes, levied for community service
Property taxes, levied for debt service
Other general revenues
Gain on sale of capital assets
Investment earnings
Total general revenues
Net position – beginning, as previously reported
Change in accounting principle
Net position – beginning, restated
Net position – ending
$
-17-
740,507
$ 260,270,028
Balance Sheet
Governmental Funds
as of June 30, 2015
General Fund
Assets
Cash and investments held by trustee
Receivables
Current taxes
Delinquent taxes
Due from other funds
Inventory
Prepaid items
Total assets
Liabilities
Salaries payable
Due to other funds
Unearned revenue
Total liabilities
$ 142,551,846
251,483
Total liabilities, deferred inflows
of resources, and fund balances
$
43,075,101
1,151,915
549,603
43,370,896
668,136
1,319,079
231,308
749,866
12,326,048
Debt
Service Fund
$
–
–
2,114
123,691
–
–
–
8,061,426
–
6,979,695
345,349
–
373
–
–
–
$ 233,169,367
$
13,201,719
$
15,386,843
$
$
–
4,825,283
–
–
–
4,825,283
$
–
–
–
–
–
–
15,440,724
13,782,408
1,339,831
–
870,392
31,433,355
Unavailable revenue – delinquent taxes
Fund balances (deficits)
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Capital Projects –
Building
Construction Fund
73,478,636
843,620
74,322,256
–
–
–
10,611,112
254,093
10,865,205
1,550,387
35,850,205
45,994,578
44,018,586
127,413,756
–
8,924,575
–
(548,139)
8,376,436
–
4,521,638
–
–
4,521,638
$ 233,169,367
-18-
$
13,201,719
$
15,386,843
Total Governmental Funds
2015
2014
Nonmajor Funds
$
11,020,855
–
$ 162,383,993
12,577,531
$ 162,072,794
20,842,600
1,696,351
50,652
33,302
1,300,376
40,912
129,310
39,949
51,751,147
1,547,916
585,019
44,795,336
709,048
1,448,389
271,257
51,724,094
2,039,711
813,975
43,771,207
1,009,386
1,516,485
292,279
$
14,311,707
$ 276,069,636
$ 284,082,531
$
603,070
508,785
570,344
–
266,594
1,948,793
$
$
$
16,043,794
19,116,476
1,910,175
–
1,136,986
38,207,431
17,473,631
21,391,339
2,111,941
1,009,386
1,101,995
43,088,292
2,992,000
36,854
3,028,854
87,081,748
1,134,567
88,216,315
88,016,311
1,489,963
89,506,274
169,259
9,164,801
–
–
9,334,060
1,719,646
58,461,219
45,994,578
43,470,447
149,645,890
1,808,764
63,639,085
48,935,003
37,105,113
151,487,965
14,311,707
$ 276,069,636
$ 284,082,531
-19-
Reconciliation of the Balance Sheet to the
Governmental Funds
as of June 30, 2015
2015
$
Total fund balances – governmental funds
149,645,890
2014
$
151,487,965
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets are included in net position, but are excluded from fund
balances because they do not represent financial resources.
Cost of capital assets
Accumulated depreciation
478,762,561
(205,529,313)
455,184,114
(198,551,547)
(58,620,000)
(33,880,000)
(4,372,698)
(3,506,343)
(86,760)
(54,660,098)
(202,536,867)
(4,682,467)
(34,960,000)
(5,700,956)
(75,885,000)
(24,895,000)
(4,760,799)
(4,383,507)
(106,040)
–
–
(4,114,784)
(37,854,000)
(4,826,956)
Accrued interest payable on long-term debt is included in net position, but is
excluded from fund balances until due and payable.
(1,726,961)
(1,603,049)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service
funds are included in the governmental activities in the Statement of Net
Position.
11,922,166
9,088,668
The recognition of certain revenues and expenses/expenditures differ
between the full accrual governmental activities financial statements and the
modified accrual governmental fund financial statements.
Deferred outflows – PERA and TRA pension plans
Deferred inflows – PERA and TRA pension plans
Deferred inflows – delinquent property taxes
47,982,439
(78,444,653)
1,134,567
–
–
1,489,963
Long-term liabilities are included in net position, but are excluded from fund
balances until due and payable. Debt issuance premiums and discounts are
excluded from net position until amortized, but are included in fund balances
upon issuance.
Capital leases
Special assessments
Net pension liability – PERA
Net pension liability – TRA
Severance
Net OPEB obligation
$
Total net position – governmental activities
-20-
740,507
$
260,270,028
Governmental Funds
General Fund
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
$
Expenditures
Current
Administration
Sites and buildings
Food service
Community service
Capital outlay
Debt service
Principal
Total expenditures
69,954,018
100,511
12,381,486
352,363,108
12,773,973
447,573,096
Capital Projects –
Building
Construction Fund
$
–
2,352
–
–
–
2,352
Debt
Service Fund
$
20,335,885
8,042
–
3,742
–
20,347,669
10,952,299
12,100,886
198,263,491
9,461,120
82,498,283
38,915,994
39,344,548
37,508,938
885,282
–
600,158
–
–
–
–
–
–
–
–
–
–
–
–
22,200,899
–
–
–
–
–
–
–
–
–
–
–
–
864,230
1,047,047
432,442,276
–
113,760
22,314,659
17,265,000
3,229,135
20,494,135
15,130,820
(22,312,307)
Other financing sources (uses)
Certificates of participation issued
Premium on certificates of participation
Proceeds from sale of capital assets
Transfers in
Transfers (out)
Total other financing sources (uses)
248,173
–
3,182,545
–
(8,790,770)
(5,360,052)
8,736,827
8,333
–
8,735,233
–
17,480,393
9,770,768
(4,831,914)
Excess (deficiency) of revenue over expenditures
Fund balances
Beginning of year, as previously reported
Beginning of year, restated
122,900,420
(5,257,432)
117,642,988
$
End of year
-21-
127,413,756
(146,466)
–
–
–
–
–
–
(146,466)
13,208,350
–
13,208,350
$
8,376,436
4,668,104
–
4,668,104
$
4,521,638
Total Governmental Funds
2015
2014
Nonmajor Funds
$
3,074,063
8,460
19,256,133
6,684,603
9,173,051
38,196,310
$
$
65,713,545
100,538
32,161,045
366,563,327
21,653,871
486,192,326
–
–
–
–
–
–
–
–
–
19,078,844
19,517,758
1,018,449
10,952,299
12,100,886
198,263,491
9,461,120
82,498,283
38,915,994
39,344,548
37,508,938
885,282
19,078,844
20,117,916
23,219,348
10,541,372
11,365,014
194,199,976
8,756,125
81,206,982
32,732,548
38,761,114
38,738,698
1,053,303
18,167,895
19,591,609
16,288,612
12,934
893
39,628,878
18,142,164
4,390,835
514,879,948
19,888,709
4,243,065
495,535,022
(1,432,568)
–
–
–
55,537
–
55,537
(1,377,031)
10,711,091
–
10,711,091
$
93,363,966
119,365
31,637,619
359,051,453
21,947,024
506,119,427
9,334,060
(8,760,521)
(9,342,696)
8,985,000
8,333
3,182,545
8,790,770
(8,790,770)
12,175,878
24,895,000
2,710,960
–
1,254,220
(1,254,220)
27,605,960
3,415,357
18,263,264
151,487,965
(5,257,432)
146,230,533
$
149,645,890
133,224,701
–
133,224,701
$
151,487,965
-22-
Reconciliation of the Statement of
Revenue, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
2015
Total net change in fund balances – governmental funds
$
3,415,357
2014
$
18,263,264
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays are recorded as net position and the cost is allocated over their estimated useful lives as
depreciation expense. However, fund balances are reduced for the full cost of capital outlays at the
time of purchase.
Capital outlays
Depreciation expense
29,539,522
(10,816,300)
21,808,843
(11,116,486)
A gain or loss on the disposal of capital assets, including the difference between the carrying value and
any related sale proceeds, is included in the change in net position. However, only the sale proceeds are
included in the change in fund balances.
(2,122,541)
(17,451)
The amount of debt issued is reported in the governmental funds as a source of financing. Debt
obligations are not revenues in the Statement of Activities, but rather constitute long-term liabilities.
(8,985,000)
(24,895,000)
17,265,000
388,101
877,164
19,280
18,985,000
(2,708,735)
903,709
19,280
Repayment of long-term debt does not affect the change in net position. However, it reduces fund
balances. Debt issuance premiums and discounts are included in the change in net position as they are
amortized over the life of the debt. However, they are included in the change in fund balances upon
issuance.
Capital leases
Special assessments
Interest on long-term debt is included in the change in net position as it accrues, regardless of when
payment is due. However, it is included in the change in fund balances when due.
(123,912)
(2,767)
Certain expenses are included in the change in net position, but do not require the use of current funds,
and are not included in the change in fund balances.
Severance
Net OPEB obligation
8,687,147
45,038,615
(567,683)
2,894,000
(874,000)
–
–
280,912
3,424,000
(86,663)
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The change in net position of the internal service funds is included in the governmental
activities in the Statement of Activities.
2,833,498
1,769,225
The recognition of certain revenues and expenses/expenditures differ between the full accrual
governmental activities financial statements and the modified accrual governmental fund financial
statements.
Deferred outflows – PERA and TRA pension plans
Deferred inflows – PERA and TRA pension plans
Deferred inflows – delinquent property taxes
29,508,764
(78,444,653)
(355,396)
Change in net position – governmental activities
$
-23-
38,176,963
–
–
(167,032)
$
26,460,099
Budget and Actual
General Fund
Budgeted Amounts
Original
Final
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
$
Expenditures
Current
Administration
Elementary and secondary regular
instruction
Community services
Sites and buildings
Debt service
Principal
Total expenditures
Excess (deficiency) of revenue over
expenditures
Transfers (out)
$
70,402,863
300,000
11,345,224
348,517,153
12,414,468
442,979,708
$
71,024,592
150,000
11,540,531
348,145,439
13,126,112
443,986,674
Actual
$
69,954,018
100,511
12,381,486
352,363,108
12,773,973
447,573,096
Over (Under)
Final Budget
$
(1,070,574)
(49,489)
840,955
4,217,669
(352,139)
3,586,422
10,536,818
13,990,408
11,103,981
12,952,367
10,952,299
12,100,886
(151,682)
(851,481)
206,548,669
8,233,366
82,968,099
–
39,468,533
39,542,352
31,708,152
1,050,000
206,027,660
9,118,107
85,040,334
602,155
42,774,094
40,352,986
35,642,541
1,050,000
198,263,491
9,461,120
82,498,283
600,158
38,915,994
39,344,548
37,508,938
885,282
(7,764,169)
343,013
(2,542,051)
(1,997)
(3,858,100)
(1,008,438)
1,866,397
(164,718)
872,185
126,780
435,045,362
872,185
1,047,966
446,584,376
864,230
1,047,047
432,442,276
(7,955)
(919)
(14,142,100)
7,934,346
(2,597,702)
15,130,820
17,728,522
–
–
(8,799,153)
(8,799,153)
–
1,919,545
(8,799,153)
(6,879,608)
248,173
3,182,545
(8,790,770)
(5,360,052)
248,173
1,263,000
8,383
1,519,556
(9,477,310)
9,770,768
(864,807)
Fund balances
$
122,900,420
(5,257,432)
117,642,988
$ 127,413,756
End of year
-24-
$
19,248,078
as of June 30, 2015
2015
Assets
Current assets
Receivables
Total current assets
$
Liabilities
Current liabilities
Unearned revenue
Total current liabilities
Net position
Unrestricted
$
-25-
29,190,915
2014
$
22,320,168
–
29,190,915
300
22,320,468
396,411
8,661,352
8,210,986
17,268,749
1,485,781
1,566,112
10,179,907
13,231,800
11,922,166
$
9,088,668
Statement of Revenue, Expenses, and Changes in Net Position
2015
Operating revenue
$
Operating expenses
Dental benefit claims
Health benefit claims
Workers’ compensation claims
Total operating expenses
Operating income (loss)
Nonoperating revenue
Investment earnings
Income (loss) before transfers
Transfers in
Transfers (out)
55,651,901
2014
$
4,394,526
47,236,034
1,202,240
52,832,800
4,421,627
50,235,944
1,225,974
55,883,545
2,819,101
1,762,103
14,397
7,122
2,833,498
1,769,225
1,000,000
(1,000,000)
Net position
Beginning of year
$
End of year
-26-
57,645,648
–
–
2,833,498
1,769,225
9,088,668
7,319,443
11,922,166
$
9,088,668
Statement of Cash Flows
Cash flows from operating activities
Payments for dental claims
Payments for health claims
Payments for workers’ compensation claims
Net cash flows from operating activities
2015
2014
$ 62,747,441
(4,509,054)
(50,177,711)
(1,204,326)
6,856,350
$ 58,046,114
(4,387,248)
(50,089,947)
(1,237,552)
2,331,367
1,000,000
(1,000,000)
–
–
–
–
Cash flows from noncapital financing activities
Transfers in
Transfers (out)
Net cash flows from noncapital financing activities
Cash flows from investing activities
Investment income received
Net change in cash and cash equivalents
14,397
6,870,747
7,122
2,338,489
22,320,168
19,981,679
$ 29,190,915
$ 22,320,168
$
$
Cash and cash equivalents
Beginning of year
End of year
Reconciliation of operating income (loss) to net
cash flows from operating activities
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Changes in assets and liabilities
Accounts receivable
Receivable from fiduciary fund
Unearned revenue
2,819,101
300
–
(1,089,370)
7,095,240
(1,968,921)
$
-27-
6,856,350
1,762,103
7,553
11,516
149,154
381,397
19,644
$
2,331,367
Fiduciary Funds
as of June 30, 2015
Post-Employment
Benefits
Trust Fund
Assets
Cash held by trustee
Investments held by trustee, at fair value
Government obligations and U.S. treasuries
Corporate obligations
Mortgage-backed securities
Equities
Real estate investment trusts
Mutual funds
Total assets
$
Liabilities
Due to other funds
Total liabilities
Net position
Held in trust for employee benefits and other purposes
$
–
80
Scholarship
and Other
Private-Purpose
Trust Fund
$
3,067,020
–
1,638,778
9,921,614
365,930
6,454,118
3,236,678
11,430,463
33,047,661
–
–
–
–
–
–
3,067,020
–
709,048
709,048
224,200
–
224,200
32,338,613
$
2,842,820
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Post-Employment
Benefits
Trust Fund
Additions
Contributions
Private donations
Investment earnings
Total additions
$
Deductions
Benefits
Scholarships
Total deductions
Net position
Beginning of year
–
368,797
368,797
Scholarship
and Other
Private-Purpose
Trust Fund
$
709,048
–
709,048
228,490
206,850
435,340
(340,251)
(107,110)
32,678,864
$
End of year
-28-
276,717
51,513
328,230
32,338,613
2,949,930
$
2,842,820
Notes to Basic Financial Statements
as of June 30, 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
Independent School District No. 11 (the District) was formed and operates pursuant to applicable
Minnesota laws and statutes. The District is governed by a School Board elected by voters of the District.
The District’s financial statements have been prepared in conformity with accounting principles generally
accepted in the United States of America as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting
and financial reporting principles.
B. Reporting Entity
The accompanying financial statements include all funds, departments, agencies, boards, commissions,
and other organizations that comprise the District, along with any component units.
Component units are legally separate entities for which the District (primary government) is financially
accountable, or for which the exclusion of the component unit would render the financial statements of
the primary government misleading. The criteria used to determine if the primary government is
financially accountable for a component unit includes whether or not the primary government appoints
the voting majority of the potential component unit’s governing body, is able to impose its will on the
potential component unit, is in a relationship of financial benefit or burden with the potential component
unit, or is fiscally depended upon by the potential component unit. Based on these criteria, there are no
organizations considered to be component units of the District.
In addition to component units, the District is required to disclose its relationships with related
organizations. The District is a member of Technology and Information Educational Services (TIES), a
consortium of Minnesota school districts that provides data processing services and support to its member
districts. TIES is a separate legal entity that is financially independent of the District. Further, the District
does not appoint a voting majority of TIES’ Board of Directors. Therefore, TIES is not included as part of
the District’s reporting entity. During the 2015 fiscal year, the District paid $1,656,423 to TIES for goods
and services provided.
Extracurricular student activities are determined primarily by student participants under the guidance of
an adult and are generally conducted outside of school hours. In accordance with Minnesota Statutes,
district school boards can elect to either control or not to control extracurricular student activities. The
District’s School Board has elected not to control or be otherwise financially accountable with respect to
the underlying extracurricular activities. Accordingly, the extracurricular student activity accounts are not
included in these financial statements.
C. Government-Wide Financial Statement Presentation
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all the financial
activities of the District, except for the fiduciary funds. Generally, the effect of material interfund activity
has been removed from the government-wide financial statements. Transactions representing interfund
services provided and used are not eliminated in the consolidation process to the government-wide
-29-
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include charges to customers or applicants who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function or segment and
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other internally-directed revenues are reported instead as
general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes are generally
recognized as revenues in the fiscal year for which they are levied, except for amounts advance
recognized in accordance with a statutory “tax shift” described later in these notes. Grants and similar
items are recognized when all eligibility requirements imposed by the provider have been met.
Depreciation expense is included as a direct expense in the functional areas that utilize the related capital
assets. Interest on debt is considered an indirect expense and is reported separately on the Statement of
Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental, proprietary, and fiduciary funds. Major
individual governmental funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting transactions are
recorded in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the District generally considers revenues, including property
taxes, to be available if they are collected within 60 days after year-end. Grants and similar items
are recognized when all eligibility requirements imposed by the provider have been met. State
revenue is recognized in the year to which it applies according to funding formulas established by
Minnesota Statutes. Proceeds of long-term debt and acquisitions under capital leases are reported
as other financing sources.
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term obligations, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds. In the General Fund, capital
outlay expenditures are included within the applicable functional areas.
Internal service funds are presented in the proprietary fund financial statements. Because the principal
users of the internal services are the District’s governmental activities, the internal service funds are
consolidated into the governmental activities column when presented in the government-wide financial
statements. The cost of these services is reported in the appropriate functional activity.
-30-
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the
District’s internal service funds are charges to customers (other district funds) for service. Operating
expenses for the internal service funds include the cost of providing the services. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
Fiduciary funds are presented in the fiduciary fund financial statements by type: pension (or other benefit)
trust and private-purpose trust. Since, by definition, fiduciary fund assets are being held for the benefit of
a third party and cannot be used for activities or obligations of the District, these funds are excluded from
the government-wide financial statements.
Proprietary and fiduciary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting as described earlier in these notes.
Description of Funds
The existence of the various district funds has been established by the Minnesota Department of
Education. Each fund is accounted for as an independent entity. Descriptions of the funds included in this
report are as follows:
Major Governmental Funds
General Fund – The General Fund is used to account for all financial resources except those required
to be accounted for in another fund.
Capital Projects – Building Construction Fund – The Capital Projects – Building Construction
Fund is used to account for financial resources used for the acquisition or construction of major
capital facilities authorized by debt issue or under the Alternative Facilities Program.
Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources
for, and payment of, general obligation debt principal, interest, and related costs. The regular debt
service account is used for all general obligation debt service except for the financial activities of the
other post-employment benefits (OPEB) debt service account. The OPEB debt service account is used
for the 2009 taxable OPEB bond issue.
Food Service Special Revenue Fund – The Food Service Special Revenue Fund is primarily used to
record financial activities of the District’s child nutrition program.
Community Service Special Revenue Fund – The Community Service Special Revenue Fund is
used to account for services provided to residents in the areas of recreation, civic activities, nonpublic
pupils, adult or early childhood programs, or other similar services.
Proprietary Funds
Internal Service Funds – Internal service funds account for the financing of goods or services
provided by one department to other departments or agencies of the District, or to other governments,
on a cost-reimbursement basis. The District’s internal service funds are used to account for dental
benefits, health benefits, and workers’ compensation benefits offered by the District to its employees
as a self-insured plan.
-31-
Fiduciary Funds
Post-Employment Benefits Trust Fund – The Post-Employment Benefits Trust Fund is used to
administer resources received and held by the District as the trustee for others. The Post-Employment
Benefits Trust Fund includes assets held in an irrevocable trust to fund post-employment insurance
benefits of eligible employees.
Scholarship and Other Private-Purpose Trust Fund – The Scholarship and Other Private-Purpose
Trust Fund is used to account for resources held in trust to be used by various other third parties for
donor-directed purposes, such as to award scholarships to former students.
E. Budgetary Information
The School Board adopts an annual budget for all governmental funds prepared on the same basis of
accounting as the fund financial statements. Legal budgetary control is at the fund level. Budgeted
appropriations lapse at year-end. However, for certain programs, unspent appropriations are assigned for
carryover and may be re-appropriated in the subsequent year.
Actual expenditures exceeded final budgeted appropriations for fiscal 2015 by $333,429 in the Food
Service Special Revenue Fund, by $212,324 in the Community Service Special Revenue Fund, and by
$290 in the Debt Service Fund. These variances were financed by revenues in excess of budget and
available fund balance.
Encumbrance accounting is employed in governmental funds. Encumbrances, which are comprised of
purchase orders outstanding at year-end, are disclosed as commitments when applicable. Such amounts
do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored
during the subsequent fiscal year. Outstanding encumbrances at year-end are included in the appropriate
restricted, committed, or assigned component of fund balance as applicable.
F. Cash and Temporary Investments
Cash and temporary investments include balances from all funds that are combined and invested to the
extent available in various securities as authorized by state law. Earnings from the pooled investments are
allocated to the respective funds on the basis of applicable cash balance participation by each fund. Debt
proceeds recorded in the Capital Projects – Building Construction Fund are not pooled, and earnings on
these proceeds are allocated directly to the fund.
Cash and investments held by trustee include balances held in segregated accounts that are established for
specific purposes. In the Post-Employment Benefits Trust Fund, this represents assets contributed to an
irrevocable trust established to finance the District’s liability for post-employment insurance benefits. In
the General Fund and the Capital Projects – Building Construction Fund, this represents unspent proceeds
from certificates of participation issued in fiscal 2014 and 2015 for future debt service and construction
costs. Interest earned on these investments is allocated directly to these accounts.
For purposes of the Statement of Cash Flows, the District considers all highly liquid debt instruments
with an original maturity from the time of purchase by the District of three months or less to be cash
equivalent. The proprietary fund’s equity in the government-wide cash and investment management pool
is considered to be cash equivalent.
Investments are generally stated at fair value, except for investments in 2a7-like external investment
pools, which are stated at amortized cost. Short-term, highly liquid debt instruments (including
commercial paper, bankers’ acceptance, and U.S. treasury and agency obligations) purchased with a
remaining maturity of one year or less are also reported at amortized cost. Investment income is accrued
at the Balance Sheet date.
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G. Receivables
When necessary, the District utilizes an allowance for uncollectible accounts to value its receivables.
However, the District considers all of its current receivables to be collectible. The only receivables not
expected to be fully collected within one year are property taxes receivable.
At June 30, 2015, the District reported the following receivables due from other governmental units:
Due from the MDE
Due from other Minnesota school districts
Due from the county and others
Total
$
43,630,221
46,981
1,118,134
$
44,795,336
H. Inventories
Inventories are recorded using the consumption method of accounting and consist of purchased food,
supplies, heating fuel, and surplus commodities received from the federal government. Purchased food,
supplies, and heating fuel are recorded at average cost. Surplus commodities are stated at standardized
costs, as determined by the U.S. Department of Agriculture.
I.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. Prepaid items are recorded as expenses/expenditures at the time of consumption.
J. Property Taxes
The majority of the District’s revenue in the General Fund is determined annually by statutory funding
formulas. The total revenue allowed by these formulas is allocated between property taxes and state aids
by the Legislature based on education funding priorities.
Generally, property taxes are recognized as revenue by the District in the fiscal year that begins midway
through the calendar year in which the tax levy is collectible. To help balance the state budget, the
Minnesota Legislature utilizes a tool referred to as the “tax shift,” which periodically changes the
District’s recognition of property tax revenue. The tax shift advance recognizes cash collected for the
subsequent year’s levy as current year revenue, allowing the state to reduce the amount of aid paid to the
District. Currently, the mandated tax shift recognizes $5,035,296 of the property tax levy collectible in
2015 as revenue to the District in fiscal year 2014–2015. The remaining portion of the taxes collectible in
2015 is recorded as a deferred inflow of resources (property taxes levied for subsequent year).
Property tax levies are certified to the County Auditor in December of each year for collection from
taxpayers in May and October of the following calendar year. In Minnesota, counties act as collection
agents for all property taxes. The county spreads all levies over taxable property. Such taxes become a
lien on property on the following January 1. The county generally remits taxes to the District at periodic
intervals as they are collected.
Taxes that remain unpaid are classified as delinquent taxes receivable. Revenue from these delinquent
property taxes that is not collected within 60 days of year-end is reported as a deferred inflow of resources
(unavailable revenue) in the fund financial statements because it is not known to be available to finance
the operations of the District.
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K. Capital Assets
Capital assets that are purchased or constructed by the District are recorded at historical cost or estimated
historical cost. Donated capital assets are recorded at their estimated fair market value at the date of
donation. The District defines capital assets as those with an initial, individual cost of $3,000 or more,
which benefit more than one fiscal year. The cost of normal maintenance and repairs that do not add to
the value of the asset or materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide financial statements, but are not reported in the
governmental fund financial statements. Capital assets are depreciated using the straight-line method over
their estimated useful lives. Since assets are generally sold for an immaterial amount or scrapped when
declared as no longer fit or needed for public school purposes by the District, no salvage value is taken
into consideration for depreciation purposes. Useful lives vary, ranging from 20 to 50 years for land
improvements and buildings, and 3 to 30 years for furniture and equipment. Land and construction in
progress are not depreciated.
The District does not possess any material amounts of infrastructure capital assets, such as sidewalks or
parking lots. Such items are considered to be part of the cost of buildings or other improvable property.
L. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported
as liabilities in the applicable governmental activities. If material, bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums or
discounts on debt issuances are reported as other financing sources or uses, respectively.
M. Compensated Absences
Under the terms of collectively bargained contracts, eligible employees accrue vacation and sick leave at
varying rates, portions of which may be carried over to future years. Employees are reimbursed for
unused, accrued vacation to the limit specified in their labor contract or School Board policy upon
termination. Unused sick leave enters into the calculation of severance benefits for some employees upon
termination. Compensated absences are accrued in the governmental fund statements only to the extent
they have been used or otherwise matured prior to year-end. Unused vacation is accrued as it is earned in
the government-wide financial statements.
N. Severance Benefits
The District provides post-employment severance benefits to certain eligible employees in accordance
with provisions in collectively bargained contracts or School Board policy. The benefits are described as
follows:
Members of certain district employee groups may become eligible to receive lump sum sick leave
severance pay benefits. Eligibility for these benefits is based on years of service and/or minimum age
requirements. Severance benefits are calculated by converting a portion of an eligible employee’s unused
accumulated sick leave. No individual can receive severance benefits in excess of one year’s salary. All
employment contracts have maximum amounts payable which range from 100 days’ pay to 150 days’
pay. The District has negotiated with most bargaining units to phase out the sick leave severance and
replace it with a 403(b) Matching Program.
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Severance pay based on convertible sick leave is recorded as a liability in the government-wide financial
statements as it is earned and it becomes probable that it will vest at some point in the future. Severance
pay is accrued in the governmental fund financial statements as the liability matures due to employee
retirement.
O. State-Wide Pension Plans
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and Teachers Retirement Association (TRA) and additions to/deductions from the PERA’s and
the TRA’s fiduciary net positions have been determined on the same basis as they are reported by the
PERA and the TRA. For this purpose, plan contributions are recognized as of employer payroll paid dates
and benefit payments and refunds are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
The TRA has a special funding situation created by direct aid contributions made by the state of
Minnesota, City of Minneapolis, and Special School District No. 1, Minneapolis Public Schools. The
direct aid is a result of the merger of the Minneapolis Teachers Retirement Fund Association into the
TRA in 2006.
P. Risk Management and Self-Insurance
1. Property, Casualty, and Liability Insurance – The District is exposed to various risks of loss
related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural
disasters for which the District carries commercial insurance. Settled claims have not exceeded
this commercial coverage in any of the past three fiscal years. There were no significant
reductions in the District’s insurance coverage in fiscal 2015.
2. Self-Insurance – The District established an Internal Service Fund to account for and finance its
uninsured risk of loss for workers’ compensation benefits, and established two other internal
service funds to account for and finance the respective employee dental and health insurance
plans. Under the health and dental plans, the internal service funds are used to account for
insurance coverage provided to participating employees and their dependents for various dental
and healthcare costs as described in the plans.
The District makes premium payments that include both employer and employee contributions to
the internal service funds on behalf of program participants based on rates determined by the
District’s estimates of monthly claims paid for each coverage class, plus the stop-loss health
insurance premium costs and administrative service charges.
District health and dental claim liabilities include an amount for claims that have been incurred
but not reported and claims that have been incurred but not paid. This liability is based on
calculations of the lag time in reporting actual claims and average claims costs for the time period
of the delayed reporting.
Workers’ compensation claim liabilities are based on open claims and estimates. They are also
based on actuarial analysis to determine potential or unknown claims. Determining actual claim
liabilities depends on complex factors such as changes in Minnesota Statutes, legal
determinations, injury assessments, and awards; therefore, the process used in computing a claim
liability does not necessarily result in an exact amount.
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Changes in dental claim liabilities for the last two years were as follows:
Balance –
Beginning
of Year
Fiscal Year
Ended June 30,
2014
2015
$
$
325,728
345,372
Charges and
Changes
in Estimates
$
$
4,421,627
4,394,526
Claim
Payments
$
$
4,401,983
4,528,912
Balance –
End of Year
$
$
345,372
210,986
Changes in health insurance claim liabilities for the last two years were as follows:
Balance –
Beginning
of Year
Fiscal Year
Ended June 30,
2014
2015
$
$
7,834,535
7,834,535
Charges and
Changes
in Estimates
Claim
Payments
$ 50,235,944
$ 47,236,034
$ 50,235,944
$ 49,070,569
Balance –
End of Year
$
$
7,834,535
6,000,000
Changes in workers’ compensation claim liabilities for the last two years were as follows:
Balance –
Beginning
of Year
Fiscal Year
Ended June 30,
2014
2015
$
$
2,000,000
2,000,000
Charges and
Changes
in Estimates
$
$
1,225,974
1,202,240
Claim
Payments
$
$
1,225,974
1,202,240
Balance –
End of Year
$
$
2,000,000
2,000,000
Q. Deferred Outflows/Inflows of Resources
In addition to assets, statements of financial position or balance sheets will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to a future period and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in
this category. It is the deferred outflows of resources related to pensions reported in the government-wide
Statement of Net Position. This deferred outflow results from differences between expected and actual
experience, changes of assumptions, differences between projected and actual earnings on pension plan
investments, and contributions to the plan subsequent to the measurement date and before the end of the
reporting period. These amounts are deferred and amortized as required under pension standards.
In addition to liabilities, statements of financial position or balance sheets will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The District has three items which qualify for reporting in this
category.
The first item is property taxes levied for subsequent years, which represent property taxes received or
reported as a receivable before the period for which the taxes are levied, and is reported as a deferred
inflow of resources in both the government-wide Statement of Net Position and the governmental funds
Balance Sheet. Property taxes levied for subsequent years are deferred and recognized as an inflow of
resources in the government-wide financial statements in the year for which they are levied and in the
governmental fund financial statements during the year for which they are levied, if available.
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The second item, unavailable revenue from property taxes, arises under a modified accrual basis of
accounting and is reported only in the governmental funds Balance Sheet. Delinquent property taxes not
collected within 60 days of year-end are deferred and recognized as an inflow of resources in the
governmental funds in the period the amounts become available.
The third item, deferred inflows of resources related to pensions, is reported in the government-wide
Statement of Net Position. This deferred inflow results from differences between expected and actual
experience, changes of assumptions, and the difference between projected and actual earnings on pension
plan investments. These amounts are deferred and amortized as required under pension standards.
R. Net Position
In the government-wide and internal service fund financial statements, net position represents the
difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources.
Net position is displayed in three components:

Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.

Restricted Net Position – Consists of net position restricted when there are limitations imposed
on their use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.

Unrestricted Net Position – All other net position that does not meet the definition of
“restricted” or “net investment in capital assets.”
The District applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
S. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:

Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.

Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.

Committed – Consists of internally imposed constraints that are established by resolution of the
School Board. Those committed amounts cannot be used for any other purpose unless the School
Board removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.

Assigned – Consists of internally imposed constraints. These constraints consist of amounts
intended to be used by the District for specific purposes but do not meet the criteria to be
classified as restricted or committed. In governmental funds, assigned amounts represent intended
uses established by the governing body itself or by an official to which the governing body
delegates the authority. Pursuant to School Board resolution, the District’s Superintendent and the
Chief Financial Officer are authorized to establish assignments of fund balance.
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
Unassigned – The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the District’s policy to first use
restricted resources, then use unrestricted resources as they are needed.
When committed, assigned, or unassigned resources are available for use, it is the District’s policy to use
resources in the following order: 1) committed, 2) assigned, and 3) unassigned.
T. Restricted Assets
Restricted assets are cash and cash equivalents and the related interest receivable whose use is limited by
legal requirements such as a bond indenture. Restricted assets are reported only in the government-wide
financial statements. In the fund financial statements these assets have been reported as “cash and
investments held by trustee.”
U. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenue and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
V. Prior Period Comparative Financial Information/Reclassification
The basic financial statements include certain prior year partial comparative information in total but not at
the level of detail required for a presentation in conformity with accounting principles generally accepted
in the United States of America. Accordingly, such information should be read in conjunction with the
District’s financial statements for the year ended June 30, 2014, from which the summarized information
was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year’s presentation.
W. Change in Accounting Principle
During the year ended June 30, 2015, the District implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions—an amendment of GASB Statement No. 27. GASB Statement No. 68
included major changes in how employers account for pension benefit expenses and liabilities. In
financial statements prepared using the economic resources measurement focus and accrual basis of
accounting (government-wide and proprietary funds), an employer is required to recognize a liability for
its share of the net pension liability provided through the pension plan. An employer is required to
recognize pension expense and report deferred outflows of resources and deferred inflows of resources for
its share related to pensions. This standard required retroactive implementation, which resulted in the
restatement of net position as of June 30, 2014. The net position of governmental activities in the
government-wide financial statements as of June 30, 2014 was decreased by $292,449,052. This change
reflects the District’s proportionate share of the net pension liabilities ($310,922,727 decrease in net
position) and related deferred outflows of resources ($18,473,675 increase in net position) for the PERA
and TRA pension plans, which are now reported by employers under current guidance. Certain amounts
necessary to fully restate fiscal year 2014 financial information are not determinable; therefore, prior year
comparative amounts have not been restated.
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X. Prior Period Adjustment
In 2015, the District recorded a prior period adjustment to correct the recording of the District’s portion of
unearned revenue as it relates to the health and dental insurance plans of the District. The District
calculated an adjustment of $4,495,451 for medical insurance and an adjustment of $761,981 for dental
insurance, for a net adjustment of $5,257,432. Certain amounts necessary to fully restate fiscal year 2014
financial information are not readily determinable; therefore, prior year comparative amounts have not
been restated.
NOTE 2 – DEPOSITS AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits
Investments
Total
$
11,905,982
228,361,138
$ 240,267,120
Cash and investments are presented in the financial statements as follows:
Cash and investments for debt service
Cash and investments for capital asset acquisition
Post-Employment Benefits Trust Fund
Scholarship and Other Private-Purpose Trust Fund
Total
$ 191,574,908
251,483
12,326,048
33,047,661
3,067,020
$ 240,267,120
B. Deposits
In accordance with applicable Minnesota Statutes, the District maintains deposits at depository banks
authorized by the School Board, including checking accounts, savings accounts, and non-negotiable
certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
District’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The District’s deposit policies do
not further limit depository choices.
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NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
At year-end, the bank balance of the District’s deposits was $14,836,894 and the carrying amount was
$11,905,982. At June 30, 2015, all deposits were fully covered by federal depository insurance, surety
bonds, or by collateral held by the District’s agent in the District’s name.
C. Investments
The District has the following investments at year-end:
Investment Type
Government obligations – federal agencies
U.S. treasuries
Mortgage back securities
Guaranteed investment contract
Commercial paper
Equities
Real estate investment trusts
Investment pools/mutual funds
OPEB mutual funds
OPEB mutual funds
Minnesota School District
Liquid Asset Fund
Interest Risk –
Maturity Duration in Years
Less Than 1
1 to 5
Credit Risk
Rating Agency
AA
S&P
$
335,356
$
N/R
AAA
AA
A
AA
A
BBB
Baa
AAA
N/R
AAA
N/R
N/R
N/A
S&P
S&P
S&P
Moody’s
Moody’s
S&P
Moody’s
S&P
N/A
S&P
N/A
N/A
$
$
$
$
$
$
$
$
$
$
$
–
–
–
457,306
–
–
200,000
–
–
2,276,062
–
N/A
N/A
$
$
$
$
$
$
$
$
$
$
$
N/R
AAA
N/A
S&P
N/A
N/A
AAA
S&P
N/A
Total investments
991,398
6 to 10
Total
$
–
$
$
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
–
–
N/A
N/A
312,024
200,260
624,793
5,714,071
200,170
1,439,699
1,051,229
691,392
365,930
2,276,062
12,577,204
6,454,118
3,236,678
N/A
N/A
N/A
N/A
10,878,221
552,242
N/A
N/A
180,460,291
312,024
200,260
624,793
5,256,765
200,170
1,439,699
851,229
691,392
365,930
–
12,577,204
N/A
N/A
$
1,326,754
$ 228,361,138
N/A – Not Applicable
N/R – Not Rated
The Minnesota School District Liquid Asset Fund (MSDLAF) is regulated by Minnesota Statutes and is
an external investment pool which is not registered with the Securities Exchange Commission (SEC) that
follows the same regulatory rules of the SEC under rule 2a7. The District’s investment in the MSDLAF is
measured at the net asset value per share provided by the pool, which is based on an amortized cost
method that approximates fair value.
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the District would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. Investments in investment pools and money markets are not evidenced by securities that exist
in physical or book entry form and, therefore, are not subject to custodial credit risk disclosures.
Although the District’s investment policies do not directly address custodial credit risk, it typically
limits its exposure by purchasing insured or registered investments, or by the control of who holds the
securities.
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NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the District’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top two
highest categories; repurchase or reverse purchase agreements and securities lending agreements with
financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. For assets held in the Post-Employment Benefits Trust
Fund, the investment options available to the District are expanded to include the investment types
specified in Minnesota Statute § 356A.06, Subd. 7. The District’s investment policies do not further
restrict investing in specific financial instruments.
Concentration Risk – This is the risk associated with investing a significant portion of the District’s
investments (considered 5 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The District’s
investment policies do not further address concentration risk. At June 30, 2015, the District’s
investment portfolio includes US Bank commercial paper held by trustee that represents 5.5 percent
of the portfolio.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The District’s investment policies do not limit the maturities of investments;
however, when purchasing investments the District considers such things as interest rates and cash
flow needs.
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NOTE 3 – CAPITAL ASSETS
Capital assets activity for the current year ended is as follows:
Balance –
Beginning
of Year
Capital assets, not depreciated
Land
Construction in progress
Total capital assets, not depreciated
$
10,285,676
16,724,935
27,010,611
Additions
$
119,570
25,283,505
25,403,075
$
(174,000)
–
(174,000)
Capital assets, depreciated
Land improvements
Buildings
Total capital assets, depreciated
23,869,839
366,274,451
38,029,213
428,173,503
432,600
2,228,011
1,475,836
4,136,447
(337,949)
(3,705,764)
(1,743,362)
(5,787,075)
Less accumulated depreciation for
Land improvements
Buildings
Total accumulated depreciation
(14,290,781)
(155,758,087)
(28,502,679)
(198,551,547)
(869,099)
(8,729,387)
(1,217,814)
(10,816,300)
200,557
2,030,012
1,607,965
3,838,534
229,621,956
(6,679,853)
(1,948,541)
Net capital assets, depreciated
Total capital assets, net
$ 256,632,567
$
18,723,222
Completed
Construction
Deletions
$
(2,122,541)
$
Balance –
End of Year
–
(1,541,860)
(1,541,860)
$
–
1,456,100
85,760
1,541,860
10,231,246
40,466,580
50,697,826
23,964,490
366,252,798
37,847,447
428,064,735
–
–
–
–
(14,959,323)
(162,457,462)
(28,112,528)
(205,529,313)
1,541,860
222,535,422
–
$ 273,233,248
$
Depreciation expense for the year was charged to the following governmental functions:
Administration
Food service
Community service
Total depreciation expense
$
317,384
409,023
6,001,841
272,745
2,371,690
1,133,597
307,703
2,317
$
10,816,300
NOTE 4 – LONG-TERM LIABILITIES
A. General Obligation Bonds Payable
The District currently has the following general obligation bonds payable outstanding:
Issue
2006A Alternative Facilities Bonds
2008A Refunding Bonds
2009A Taxable OPEB Bonds
2011A Refunding Bonds
Issue Date
Interest Rate
Face/Par Value
03/16/2006
08/01/2008
10/15/2009
11/15/2011
4.00%
3.38–5.00%
1.35–5.50%
3.00–4.00%
$
$
$
$
Total general obligation bonds payable
-42-
12,930,000
44,200,000
26,490,000
24,245,000
Final
Maturity
02/01/2016
02/01/2020
02/01/2030
02/01/2020
Principal
Outstanding
$
1,345,000
26,600,000
22,390,000
8,285,000
$
58,620,000
NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
These bonds were issued to finance acquisition, construction, and/or improvements of capital facilities, to
finance the retirement (refunding) of prior bond issues, or to finance OPEB obligations. Assets of the
Debt Service Fund, together with scheduled future ad valorem tax levies, are dedicated for the retirement
of these bonds. The annual future debt service levies authorized equal 105 percent of the principal and
interest due each year. These levies are subject to reduction if fund balance amounts exceed limitations
imposed by Minnesota law.
B. Certificates of Participation Payable
Issue
2014A Certificates of Participation
2015A Certificates of Participation
Issue Date
Interest Rate
Face/Par Value
Final
Maturity
04/17/2014
04/09/2015
3.00–5.00%
2.00–4.00%
$ 24,895,000
$ 8,985,000
02/01/2035
02/01/2041
Total certificates of participation
Principal
Outstanding
$
24,895,000
8,985,000
$
33,880,000
In April 2014, the District sold $24,895,000 of certificates of participation to finance the construction of
additions to several elementary sites and one middle school site. Scheduled future ad valorem lease
obligation tax levies will be made to finance the retirement of principal and interest payments on the
certificates. These certificates of participation are being paid by the General Fund.
In April 2015, the District sold $8,985,000 of certificates of participation to finance the construction of
additions to two elementary schools. Scheduled future ad valorem lease obligation tax levies will be made
to finance the retirement of principal and interest payments on the certificates. These certificates of
participation are being paid by the General Fund.
C. Capital Leases
The District has three capital leases outstanding at year-end. The first, a technology equipment lease, has
a three-year term at an interest rate of 3.39 percent, and has a final maturity of May 1, 2016. The second,
a vehicle lease, has a three-year term at an interest rate of 2.74 percent, and has a final maturity of
June 30, 2016. The third, a building lease, has a 10-year term, bears an interest rate ranging from
2.00 percent to 3.625 percent, and has a final maturity of May 2020.
These capital leases will be repaid by the General Fund and the Community Service Special Revenue
Fund. The gross amount of capital assets and accumulated depreciation recorded related to capital leases
was $10,334,465 and $2,872,356, respectively. Net book value of $7,408,333 is recorded as part of
buildings, while $53,776 is included in furniture and equipment. The leased technology equipment was
individually below the District’s capitalization threshold and was not capitalized.
D. Special Assessments
Special assessments payable represents the outstanding liability relating to various improvements made to
district property financed through local municipalities. The annual assessment levies consisting of
principal and interest at various rates will be paid within their applicable function by the General Fund.
E. Other Long-Term Liabilities
The District offers a number of benefits to its employees, including: compensated absences, severance,
pensions, and OPEB. The details of these various benefit liabilities are discussed elsewhere in these notes.
Such benefits are financed primarily from the General Fund. The District has also established a
Post-Employment Benefits Trust Fund to finance OPEB obligations.
-43-
NOTE 4 – LONG-TERM LIABILITIES (CONTINUED)
F. Minimum Debt Payments
Minimum annual principal and interest payments to maturity for general obligation bonds, certificates of
participation, capital leases, and special assessments payable are as follows:
Year Ending
June 30,
2016
2017
2018
2019
2020
2021–2025
2026–2030
2031–2035
2036–2040
2041
General Obligation Bonds
Principal
Interest
$
8,825,000
7,780,000
8,035,000
8,365,000
8,755,000
7,210,000
9,650,000
–
–
–
$
2,778,410
2,378,968
2,016,168
1,692,018
1,297,825
3,759,690
1,647,910
–
–
–
$
805,000
1,070,000
1,100,000
1,135,000
1,175,000
6,720,000
8,410,000
10,560,000
2,370,000
535,000
$
1,415,403
1,448,938
1,419,338
1,388,888
1,348,688
5,903,588
4,208,944
2,041,000
398,400
21,397
$
58,620,000
$
15,570,989
$
33,880,000
$
19,594,584
Year Ending
June 30,
2016
2017
2018
2019
2020
Certificates of Participation
Principal
Interest
Capital Leases
Principal
Interest
Special Assessments
Principal
Interest
$
896,343
625,000
640,000
660,000
685,000
$
105,571
82,556
66,306
47,106
24,831
$
19,280
19,280
19,280
19,280
9,640
$
4,989
3,880
2,772
1,663
554
$
3,506,343
$
326,370
$
86,760
$
13,858
G. Changes in Long-Term Liabilities
Change in
Accounting
Principle*
Balance –
Beginning
of Year
Capital leases
Special assessments
Severance
Net OPEB obligation
$
75,885,000
24,895,000
4,760,799
4,383,507
106,040
–
–
4,114,784
37,854,000
4,826,956
$ 156,826,086
$
Additions
Balance –
End of Year
Retirements
Due Within
One Year
–
–
–
–
–
63,347,245
247,575,482
–
–
–
$
–
8,985,000
8,333
–
–
4,038,757
12,238,911
3,331,173
1,788,058
874,000
$
17,265,000
–
396,434
877,164
19,280
12,725,904
57,277,526
2,763,490
4,682,058
–
$
58,620,000
33,880,000
4,372,698
3,506,343
86,760
54,660,098
202,536,867
4,682,467
34,960,000
5,700,956
$
8,825,000
805,000
–
896,343
19,280
–
–
4,682,467
5,654,449
–
$ 310,922,727
$
31,264,232
$
96,006,856
$ 403,006,189
$
20,882,539
*Adjustment is part of the change in accounting principle described earlier in these notes.
NOTE 5 – FUND BALANCES
The classifications on the following page are a breakdown of equity components of governmental funds
which are defined earlier in the report. When applicable, certain restrictions which have an accumulated
deficit balance at June 30 are included in unassigned fund balance in the District’s financial statements in
accordance with accounting principles generally accepted in the United States of America. A description
of these deficit balance restrictions is included herein since the District has specific authority to future
resources for such deficits.
-44-
NOTE 5 – FUND BALANCES (CONTINUED)
A. Classifications
At June 30, 2015, a summary of the District’s governmental fund balance classifications are as follows:
Capital
Projects –
Building
Construction
Fund
General
Fund
Nonspendable
Inventory
Prepaid items
Total nonspendable
$
1,319,079
231,308
1,550,387
$
Debt
Service
Fund
–
–
–
$
Nonmajor
Funds
–
–
–
$
Total
129,310
39,949
169,259
$
1,448,389
271,257
1,719,646
Restricted
Staff development
Capital projects levy
Debt service on COP
Operating capital
Learning and development
Area learning center
Gifted and talented
Basic skills
Safe schools
Building projects funded by COP
Debt service
Food service
Community education programs
Early childhood family education
School readiness
Adult basic education
Community service
Total restricted
4,242,002
3,121,370
251,476
20,352,350
3,675,102
313,825
178,248
3,355,603
360,229
–
–
–
–
–
–
–
–
35,850,205
–
–
–
–
–
–
–
–
–
8,924,575
–
–
–
–
–
–
–
8,924,575
–
–
–
–
–
–
–
–
–
–
4,521,638
–
–
–
–
–
–
4,521,638
–
–
–
–
–
–
–
–
–
–
–
4,709,477
2,728,868
714,270
324,172
280,766
407,248
9,164,801
4,242,002
3,121,370
251,476
20,352,350
3,675,102
313,825
178,248
3,355,603
360,229
8,924,575
4,521,638
4,709,477
2,728,868
714,270
324,172
280,766
407,248
58,461,219
Assigned
Alternative compensation
Operating referendum shift
Building carryover
Separation/retirement benefits
MOE stimulus carryover
Strategic investments
Subsequent year budget
Class size reduction
Math action plan
Specific capital projects
MA billings
International baccalaureate
Total assigned
816,099
3,713,577
4,021,575
15,821,504
588,177
5,783,525
2,682,488
3,449,215
3,134,743
5,118,574
802,516
62,585
45,994,578
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
816,099
3,713,577
4,021,575
15,821,504
588,177
5,783,525
2,682,488
3,449,215
3,134,743
5,118,574
802,516
62,585
45,994,578
–
–
–
(964,505)
–
–
–
–
–
–
(548,139)
44,983,091
43,470,447
Unassigned
Health and safety restricted
account deficit
Alternative facilities program
restricted account deficit
Unassigned
Total unassigned
Total
(964,505)
–
44,983,091
44,018,586
$ 127,413,756
(548,139)
–
(548,139)
$
8,376,436
-45-
$
4,521,638
$
9,334,060
$ 149,645,890
NOTE 5 – FUND BALANCES (CONTINUED)
B. Minimum Unassigned Fund Balance Policy
The School Board has formally adopted a fund balance policy regarding the minimum unassigned fund
balance for the General Fund. The policy establishes the District will strive to maintain a minimum
unassigned General Fund balance (excluding restricted deficits) of 5 percent of the annual budget. At
June 30, 2015, the unassigned fund balance of the General Fund was 10.4 percent of current year
expenditures.
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Descriptions
The District participates in the following cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA and the TRA. The PERA’s and the TRA’s defined benefit pension plans are
established and administered in accordance with Minnesota Statutes. The PERA’s and the TRA’s defined
benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
The PERA’s defined benefit pension plans are established and administered in accordance with
Minnesota Statutes, Chapters 353 and 356.
All full-time and certain part-time employees of the District other than teachers are covered by the
General Employees Retirement Fund (GERF). GERF members belong to either the Coordinated Plan or
the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are
not. The Basic Plan was closed to new members in 1967. All new members must participate in the
Coordinated Plan.
2. Teachers Retirement Association (TRA)
The TRA administers a Basic Plan (without Social Security coverage) and a Coordinated Plan (with
Social Security coverage) in accordance with Minnesota Statutes, Chapters 354 and 356. The TRA is a
separate statutory entity and administered by a Board of Trustees. The Board consists of four active
members, one retired member, and three statutory officials.
Teachers employed in Minnesota’s public elementary and secondary schools, charter schools, and
certain educational institutions maintained by the state (except those teachers employed by the cities of
Duluth and St. Paul, and by the University of Minnesota system) are required to be TRA members. State
university, community college, and technical college teachers first employed by the Minnesota State
Colleges and Universities (MnSCU) may elect TRA coverage within one year of eligible employment.
Alternatively, these teachers may elect coverage through the Defined Contribution Retirement Plan
(DCR) administered by MnSCU.
-46-
NOTE 6 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
B. Benefits Provided
The PERA and the TRA provide retirement, disability, and death benefits. Benefit provisions are established by
state statutes and can only be modified by the State Legislature.

PERA – Benefit increases are provided to benefit recipients each January. Increases are related to the
funding ratio of the plan. Members in plans that are at least 90 percent funded for two consecutive years
are given 2.5 percent increases. Members in plans that have not exceeded 90 percent funded, or
have fallen below 80 percent, are given 1 percent increases.

TRA – Post-retirement benefit increases are provided to eligible benefit recipients each January.
The TRA increase is 2.0 percent. After the TRA funded ratio exceeds 90 percent for two
consecutive years, the annual post-retirement benefit will increase to 2.5 percent.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for the PERA’s Coordinated and Basic Plan members. The retiring member
receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of
average salary for each of the first 10 years of service and 2.7 percent for each remaining year.
The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each
of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity
accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for
Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal 90 and normal retirement age is
65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced
Social Security benefits capped at 66. Disability benefits are available for vested members, and
are based upon years of service and average high-five salary.
2. TRA Benefits
The TRA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by Minnesota Statutes and
vest after three years of service credit. The defined retirement benefits are based on a member’s
highest average salary for any five consecutive years of allowable service, age, and a formula
multiplier based on years of credit at termination of service:
Two methods are used to compute benefits for the TRA’s Coordinated and Basic Plan members.
Members first employed before July 1, 1989, receive the greater of the Tier I or Tier II benefits as
described.
-47-
Tier I Benefits
Step Rate Formula
Percentage
per Year
Basic Plan
First 10 years of service
All years after
2.2%
2.7%
Coordinated
First 10 years if service years are up to July 1, 2006
First 10 years if service years are July 1, 2006 or after
All other years of service if service years are up to July 1, 2006
All other years of service if service years are July 1, 2006 or after
1.2%
1.4%
1.7%
1.9%
With these provisions:
(a) Normal retirement age is 65 with less than 30 years of allowable service and age 62 with
30 or more years of allowable service.
(b) Three percent per year early retirement reduction factor for all years under normal
retirement age.
(c) Unreduced benefits for early retirement under a Rule-of-90 (age plus allowable service equals
90 or more).
Tier II Benefits
For years of service prior to July 1, 2006, a level formula of 1.7 percent per year for Coordinated Plan
members and 2.7 percent per year for Basic Plan members. For years of service July 1, 2006 and after, a
level formula of 1.9 percent per year for Coordinated Plan members and 2.7 percent for Basic Plan
members applies. Beginning July 1, 2015, the early retirement reduction factors are based on rates
established under Minnesota Statutes. Smaller reductions, more favorable to the member, will be
applied to individuals who reach age 62 and have 30 years or more of service credit.
Members first employed after June 30, 1989, receive only the Tier II calculation with a normal
retirement age that is their retirement age for full Social Security retirement benefits, but not to
exceed age 66.
Six different types of annuities are available to members upon retirement. The No Refund Life Plan is a
lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. A retiring
member may also choose to provide survivor benefits to a designated beneficiary(ies) by selecting one of
the five plans that have survivorship features. Vested members may also leave their contributions in the
TRA Fund upon termination of service in order to qualify for a deferred annuity at retirement age. Any
member terminating service is eligible for a refund of their employee contributions plus interest.
-48-
C. Contributions
Minnesota Statutes set the rates for employer and employee contributions. Contribution rates can only be modified
by the State Legislature.
1. GERF Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Basic Plan
members and Coordinated Plan members were required to contribute 9.1 percent and 6.5 percent,
respectively, of their annual covered salary in calendar year 2014. Coordinated Plan members
contributed 6.5 percent of pay in 2015. In calendar year 2014, the District was required to contribute
11.78 percent of pay for Basic Plan members and 7.25 percent for Coordinated Plan members. In 2015,
employer rates increased to 7.5 percent in the Coordinated Plan. The District’s contributions to the
GERF for the plan’s fiscal year ended June 30, 2015, were $4,756,000. The District’s contributions
were equal to the required contributions for each year as set by state statutes.
2. TRA Contributions
Per Minnesota Statutes, Chapter 354 sets the contribution rates for employees and employers. Rates for
each fiscal year were:
Year Ended June 30,
2014
2015
Employee
Employer
Employee
Employer
Basic Plan
10.5%
11.0%
11.0%
11.5%
Coordinated Plan
7.0%
7.0%
7.5%
7.5%
The District’s contributions to the TRA for the plan’s fiscal year ended June 30, 2015, were
$15,689,995. The District’s contributions were equal to the required contributions for each year as set by
state statutes.
-49-
D. Pension Costs
1. GERF Pension Costs
At June 30, 2015, the District reported a liability of $54,660,098 for its proportionate share of the GERF’s net
pension liability. The net pension liability was measured as of June 30, 2014, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date. The
District’s proportion of the net pension liability was based on the District’s contributions received by the
PERA during the measurement period for employer payroll paid dates from July 1, 2013, through June 30,
2014, relative to the total employer contributions received from all of the PERA’s participating employers.
At June 30, 2014, the District’s proportion was 1.1636 percent.
For the year ended June 30, 2015, the District recognized pension expense of $4,038,757 for its proportionate
share of the GERF’s pension expense.
At June 30, 2015, the District reported its proportionate share of the GERF’s deferred outflows of resources
and deferred inflows of resources, and its contributions subsequent to the measurement date, from the
following sources:
Deferred
Outflows
of Resources
Differences between expected and actual economic experience
Changes in actuarial assumptions
Differences between projected and actual investment earnings
District’s contributions to the GERF subsequent to the
measurement date
Total
$
838,863
5,633,267
–
Deferred
Inflows
of Resources
$
–
–
14,769,109
4,756,000
–
$ 11,228,130
$ 14,769,109
A total of $4,756,000 reported as deferred outflows of resources related to pensions resulting from district
contributions to the GERF subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows and
inflows of resources related to the GERF pensions will be recognized in pension expense as follows:
Pension
Expense
Amount
Year Ended
June 30,
2016
2017
2018
2019
$
$
$
$
-50-
(1,534,901)
(1,534,901)
(1,534,901)
(3,692,276)
2. TRA Pension Costs
At June 30, 2015, the District reported a liability of $202,536,867 for its proportionate share of
the TRA’s net pension liability. The net pension liability was measured as of June 30, 2014, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The District’s proportion of the net pension liability was based on the
District’s contributions to the TRA in relation to total system contributions including direct aid
from the state of Minnesota, City of Minneapolis, and Special School District No. 1, Minneapolis
Public Schools. The District’s proportionate share was 4.3954 percent at the end of the
measurement period and 4.3157 percent for the beginning of the period.
The pension liability amount reflected a reduction due to direct aid provided to the TRA. The
amount recognized by the District as its proportionate share of the net pension liability, the direct
aid, and total portion of the net pension liability that was associated with the District were as
follows:
District’s proportionate share of net pension liability
State’s proportionate share of the net pension liability
associated with the District
$ 202,536,867
$ 14,248,167
A change in benefit provisions that affected the measurement of the total pension liability since
the prior measurement date was an increase of the contribution rates for both the member and
employer.
For the year ended June 30, 2015, the District recognized pension expense of $11,617,365. It also
recognized $621,546 as pension expense for the support provided by direct aid.
At June 30, 2015, the District reported its proportionate share of the TRA’s deferred outflows of
resources and deferred inflows of resources, and its contributions subsequent to the measurement
date, related to pensions from the following sources:
Deferred
Outflows
of Resources
Differences between expected and actual economic experience
Difference between projected and actual investment earnings
Changes in proportion and differences between contributions
made and the District’s proportionate share of contributions
District’s contributions to the TRA subsequent to the
measurement date
Total
-51-
$ 17,281,878
–
Deferred
Inflows
of Resources
$
–
63,675,544
3,782,436
–
15,689,995
–
$ 36,754,309
$ 63,675,544
A total of $15,689,995 reported as deferred outflows of resources related to pensions resulting from district
contributions to the TRA subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows and
inflows of resources related to the TRA will be recognized in pension expense as follows:
Pension
Expense
Amount
Year Ended
June 30,
2016
2017
2018
2019
2020
$
$
$
$
$
(11,521,326)
(11,521,326)
(11,521,326)
(11,521,326)
3,474,074
E. Actuarial Assumptions
The total pension liability in the June 30, 2014, actuarial valuation was determined using the entry age normal
actuarial cost method and the following actuarial assumptions:
Assumptions
Inflation
Active member payroll growth
Investment rate of return
GERF
2.75% per year
3.50% per year
7.90%
TRA
3.0%
3.75% based on years of service
8.25%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors,
and disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight
adjustments.
Actuarial assumptions used in the June 30, 2014, valuation were based on the results of actuarial experience
studies. The actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial
experience study for the period July 1, 2004, to June 30, 2008, and a limited scope experience study dated
August 29, 2014. The limited scope experience study addressed only inflation and long-term rate of return for the
GASB Statement No. 67 valuation.
The following changes in actuarial assumptions for the GERF occurred in 2014: as of July 1, 2013, the
post-retirement benefit increase rate was assumed to increase from 1.0 percent to 2.5 percent on January 1, 2046.
As of July 1, 2014, the post-retirement benefit increase rate was assumed to increase from 1.0 percent to
2.5 percent on January 1, 2031.
There was a change in actuarial assumptions that affected the measurement of the total liability for the TRA since
the prior measurement date. Post-retirement benefit adjustments are now assumed to increase from 2.0 percent
annually to 2.5 percent annually once the legally specified criteria are met. This is estimated to occur
July 1, 2034.
The long-term expected rate of return on pension plan investments is 7.9 percent for the GERF and 8.25 percent
for the TRA. The Minnesota State Board of Investment, which manages the investments of the PERA and the
TRA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a
building-block method in which best-estimate ranges of expected future rates of return are developed for each
major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the
expected future rates of return by the target asset allocation percentages.
-52-
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic stocks
International stocks
Bonds
Alternative assets
Cash
Total
Target
Allocation
Long-Term Expected
Rate of Return
45%
15%
18%
20%
2%
5.50%
6.00%
1.45%
6.40%
0.50%
100%
F. Discount Rate
The discount rate used to measure the total pension liability was 7.9 percent for the GERF and 8.25 percent for the
TRA. The projection of cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rates specified in the statute. Based on those assumptions, each of the pension
plan’s fiduciary net positions were projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
G. Pension Liability Sensitivity
The following table presents the District’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the
District’s proportionate share of the net pension liability would be if it were calculated using a discount rate
1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in
Discount Rate
6.90%
GERF discount rate
District’s proportionate share of
the GERF net pension liability
$
7.25%
TRA discount rate
District’s proportionate share of
the TRA net pension liability
88,114,285
$
334,724,083
Discount
Rate
1% Increase in
Discount Rate
8.90%
7.90%
$ 54,660,098
$
8.25%
$ 202,536,867
27,135,175
9.25%
$
92,338,431
H. Pension Plan Fiduciary Net Position
Detailed information about the GERF’s fiduciary net position is available in a separately-issued PERA financial
report. That report may be obtained on the PERA website at www.mnpera.org; by writing to the PERA at
60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088; or by calling (651) 296-7460 or
(800) 652-9026.
Detailed information about the TRA’s fiduciary net position is available in a separately-issued TRA financial
report. That report can be obtained at the TRA website at www.MinnesotaTRA.org; by writing to the TRA at
60 Empire Drive, Suite 400, St. Paul, Minnesota 55103-2088; or by calling (651) 296-2409 or
(800) 657-3669.
-53-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The District provides post-employment benefits to certain eligible employees through the OPEB Plan, a
single-employer defined benefit plan administered by the District. All post-employment benefits are
based on contractual agreements with employee groups. These contractual agreements do not include any
specific contribution or funding requirements. The plan does not issue a publicly available financial
report. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the District have the option under state law to
continue their medical insurance coverage through the District. For members of all employee groups,
the retiree must pay the full premium to continue coverage for medical and dental insurance.
The District is legally required to include any retirees for whom it provides health insurance coverage
in the same insurance pool as its active employees until the retiree reaches Medicare eligibility,
whether the premiums are paid by the District or the retiree. Consequently, participating retirees are
considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to
the assumption that the retiree is receiving a more favorable premium rate than they would otherwise
be able to obtain if purchasing insurance on their own, due to being included in the same pool with
the District’s younger and statistically healthier active employees.
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to pre-fund benefits as determined periodically by the District. The District has established the
Post-Employment Benefits Trust Fund to finance these obligations.
C. Annual OPEB Cost and Net OPEB Obligation
The District’s annual OPEB cost (expense) is calculated based on annual required contributions (ARC) of
the District, an amount determined on an actuarially determined basis in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level funding that, if paid on an ongoing basis, is
projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed 30 years. The following table shows the components of the District’s
annual OPEB cost for the year, the amount actually contributed to the plan, and the changes in the
District’s net OPEB obligation to the plan:
ARC
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost (expense)
Contributions made
Change in net OPEB obligation
Net OPEB obligation – beginning of year
$
Net OPEB obligation – end of year
$ 5,700,956
-54-
928,000
265,483
(319,483)
874,000
–
874,000
4,826,956
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the past three years are as follows:
Fiscal
Year Ended
June 30,
2013
2014
2015
Annual
OPEB Cost
$
$
$
1,809,000
886,000
874,000
Employer
Contribution
$
$
$
1,238,075
799,337
–
Percentage of
Annual OPEB
Cost Contributed
68.4 %
90.2 %
– %
Net OPEB
Obligation
$
$
$
4,740,293
4,826,956
5,700,956
D. Funded Status and Funding Progress
As of July 1, 2013, the most recent actuarial valuation date, the plan was 118.4 percent funded. The
actuarial accrued liability for benefits was $25,901,000, and the actuarial value of plan assets was
$30,662,000, resulting in an overfunded actuarial accrued liability of $4,761,000. The covered payroll
(annual payroll of active employees covered by the plan) was $208,601,000, and the ratio of the
overfunded actuarial accrued liability to the covered payroll was 2.3 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and the ARC of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The Schedule of
Funding Progress following the notes to basic financial statements presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the July 1, 2013 actuarial valuation, the entry age normal method was used, which is in the family of
the projected benefit cost methods. The actuarial assumptions included: a 5.5 percent investment rate of
return based on the District’s own investments; a 2.5 percent rate of projected salary increases; an annual
healthcare cost trend rate of 7.0 percent initially, reduced by decrements to an ultimate rate of 5.0 percent
after 25 years. All rates include a 3.0 percent inflation adjustment. On July 1, 2013, the UAAL was being
amortized using a 30-year, open, level dollar amortization period.
F. Post-Employment Benefits Trust Fund
The District administers a defined benefit Post-Employment Benefits Trust Fund. The assets of the plan
are reported in the District’s financial report in the Post-Employment Benefits Trust Fund. The plan assets
may be used only for the payment of benefits of the plan, in accordance with the terms of the plan.
-55-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The Post-Employment Benefits Trust Fund is reported using the accrual basis of accounting. Employer
contributions to the plan are recognized when due and the employer has made a formal commitment to
provide the contributions. Benefits are recognized when due and payable in accordance with the terms of
the plan.
G. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits
Active plan members
Total members
485
4,084
4,569
NOTE 8 – INTERFUND TRANSACTIONS
A. Transfers
During fiscal 2015, the General Fund transferred $8,735,233 to the Capital Projects – Building
Construction Fund, which was related to the Alternative Facilities Program, and $55,537 to the
Community Service Special Revenue Fund to finance community service program costs. Such interfund
transfers are reported in the fund financial statements, but are eliminated in the government-wide
B. Interfund Receivables and Payables
As of June 30, 2015, the General Fund, Food Service Special Revenue Fund, and Community Service
Special Revenue Fund recorded receivables of $668,136, $18,364, and $22,548, respectively, from the
OPEB Trust Fund for the reimbursement of claims paid on behalf of the Trust.
NOTE 9 – COMMITMENTS AND CONTINGENCIES
A. Construction Contracts
At June 30, 2015, the District had commitments totaling $11,772,401 under various construction contracts
for which the work was not yet completed.
B. Federal and State Revenues
Amounts received or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be
determined at this time although the District expects such amounts, if any, to be immaterial.
C. Legal Claims
The District has the usual and customary types of miscellaneous legal claims pending at year-end, mostly
of a minor nature and usually covered by insurance carried for that purpose. Although the outcomes of
these claims are not presently determinable, the District believes that the resolution of these matters will
not have a material adverse effect on its financial position.
-56-
NOTE 10 – OPERATING LEASES
The District has several space leases for educational purposes for which there is specific authority to levy
as allowed by Minnesota Statutes. These operating leases range in duration from 1 to 11 years with
varying terms.
During the year ended June 30, 2015, rental payments under these operating leases totaled $2,836,680.
The leases require the following future annual lease payments:
Year Ending
June 30,
Amount
2016
2017
2018
2019
2020
2021
-57-
$
2,825,192
1,339,651
929,523
873,852
611,369
421,310
$
7,000,897
REQUIRED SUPPLEMENTARY INFORMATION
Defined Benefit Pensions Plans
Schedule of District’s and Non-Employer Proportionate Share of Net Pension Liability
GERF/TRA Retirement Funds
June 30, 2015
Public Employees Retirement Association
2014
District’s proportion of the net pension liability (asset)
1.1636%
District’s proportionate share of the net pension liability (asset)
$ 54,660,098
District’s covered-employee payroll
$ 61,088,719
Proportionate share of the net pension liability (asset) as a percentage of
its covered-employee payroll
89.48%
Plan fiduciary net position as a percentage of the total pension liability
78.70%
Teachers Retirement Association
District’s proportion of the net pension liability (asset)
District’s proportionate share of the net pension liability (asset) (a)
District’s proportionate share of the state of Minnesota’s proportionate
share of the net pension liability (b)
4.3954%
$ 202,536,867
14,248,167
Proportionate share of the net pension liability and the District’s share of the
state of Minnesota’s share of the net pension liability (a + b)
$ 216,785,034
$ 200,639,283
Proportionate share of the net pension liability (asset) as a percentage of
its covered-employee payroll
Plan fiduciary net position as a percentage of the total pension liability
100.95%
81.50%
Note: The District implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2014
measurement date). This information is not available for previous fiscal years.
-58-
Defined Benefit Pensions Plans
Schedule of District Contributions
GERF/TRA Retirement Funds
June 30, 2015
Public Employees Retirement Association
2015
Statutorily required contribution
$
Contributions in relation to the statutorily required contributions
4,756,000
4,756,000
Contribution deficiency (excess)
$
–
$
64,396,086
Contributions as a percentage of covered-employee payroll
7.39%
Teachers Retirement Association
Statutorily required contribution
$
Contributions in relation to the statutorily required contributions
15,689,995
15,689,995
Contribution deficiency (excess)
$
$ 209,463,482
Contributions as a percentage of covered-employee payroll
–
7.49%
Note: The District implemented GASB Statement No. 68 in fiscal 2015. This information is not available
for previous fiscal years.
-59-
Other Post-Employment Benefits Plan
Schedule of Funding Progress and Schedule of Employer Contributions
June 30, 2015
Schedule of Funding Progress
Actuarial
Valuation
Date
Actuarial
Accrued
Liability
Actuarial
Value of
Plan Assets
Unfunded
(Overfunded)
Actuarial
Accrued
Liability
July 1, 2009
July 1, 2011
July 1, 2013
$ 30,417,000
$ 34,266,000
$ 25,901,000
$
–
$ 28,420,000
$ 30,662,000
$ 30,417,000
$ 5,846,000
$ (4,761,000)
Funded
Ratio
– %
82.9 %
118.4 %
Covered
Payroll
$ 214,464,000
$ 208,988,000
$ 208,601,000
Unfunded
(Overfunded)
Liability as a
Percentage of
Payroll
14.2 %
2.8 %
(2.3) %
Schedule of Employer Contributions
Year Ended
June 30,
Annual
Required
Contribution
2010
2011
2012
2013
2014
2015
$ 33,562,000
$ 1,522,000
$ 1,857,000
$ 1,857,000
$
928,000
$
928,000
Percentage
Contributed
83.5
141.6
133.4
66.7
86.1
–
%
%
%
%
%
%
Net OPEB
Obligation
$
$
$
$
$
$
5,543,368
4,846,368
4,169,368
4,740,293
4,826,956
5,700,956
Note 1:
The Schedule of Funding Progress reflects information from the most recent actuarial reports. On October
15, 2009, the District issued taxable OPEB bonds to fund a significant portion of the actuarial accrued
liability and initial debt service costs.
Note 2:
For the year ended June 30, 2010, the same fiscal year the taxable OPEB bonds were issued, the District
elected to use a period of one year to amortize the unfunded obligation, which significantly changed the
annual required contribution for that year.
-60-
SUPPLEMENTAL INFORMATION
Combining Balance Sheet
as of June 30, 2015
Special Revenue Funds
Community
Food Service
Service
Assets
Receivables
Current taxes
Delinquent taxes
Inventory
Prepaid items
$
4,644,349
$
–
–
175
491,503
18,364
129,310
14,840
Total assets
Liabilities
Salaries payable
Unearned revenue
Total liabilities
$ 11,020,855
1,696,351
50,652
33,127
808,873
22,548
–
25,109
1,696,351
50,652
33,302
1,300,376
40,912
129,310
39,949
5,298,541
$
9,013,166
$ 14,311,707
$
117,113
231,253
–
96,548
444,914
$
485,957
277,532
570,344
170,046
1,503,879
$
Fund balances
Nonspendable for inventory
Nonspendable for prepaid items
Restricted
Total fund balances
$
-61-
6,376,506
$
Total
603,070
508,785
570,344
266,594
1,948,793
–
–
–
2,992,000
36,854
3,028,854
2,992,000
36,854
3,028,854
129,310
14,840
4,709,477
4,853,627
–
25,109
4,455,324
4,480,433
129,310
39,949
9,164,801
9,334,060
9,013,166
$ 14,311,707
5,298,541
$
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Special Revenue Funds
Community
Food Service
Service
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
$
Expenditures
Current
Food service
Community service
Capital outlay
Debt service
Principal
Total expenditures
Excess (deficiency) of revenue over expenditures
Other financing sources
Transfers in
Fund balances
Beginning of year
End of year
-62-
Total
–
4,169
8,156,347
1,142,853
8,981,812
18,285,181
$ 3,074,063
4,291
11,099,786
5,541,750
191,239
19,911,129
$ 3,074,063
8,460
19,256,133
6,684,603
9,173,051
38,196,310
19,078,844
–
875,745
–
19,517,758
142,704
19,078,844
19,517,758
1,018,449
–
–
19,954,589
12,934
893
19,674,289
12,934
893
39,628,878
(1,669,408)
236,840
(1,432,568)
–
55,537
(1,669,408)
292,377
55,537
(1,377,031)
6,523,035
4,188,056
10,711,091
$ 4,853,627
$ 4,480,433
$ 9,334,060
General Fund
as of June 30, 2015 and 2014
2015
Assets
Receivables
Current taxes
Delinquent taxes
Inventory
Prepaid items
$
142,551,846
251,483
2014
$
43,075,101
1,151,915
549,603
43,370,896
668,136
1,319,079
231,308
Total assets
Liabilities
Salaries payable
Unearned revenue
Total liabilities
233,169,367
$
222,854,688
$
15,440,724
13,782,408
1,339,831
870,392
31,433,355
$
16,897,474
15,092,108
1,545,044
821,936
34,356,562
Fund balances (deficits)
Restricted for staff development
Restricted for capital projects levy
Restricted for debt service on certificates of participation
Restricted for operating capital
Restricted for learning and development
Restricted for area learning center
Restricted for gifted and talented
Restricted for basic skills
Restricted for safe schools
Assigned for alternative compensation
Assigned for operating referendum shift
Assigned for building carryover
Assigned for separation/retirement benefits
Assigned for MOE stimulus carryover
Assigned for strategic investments
Assigned for subsequent year budget
Assigned for class size reduction
Assigned for math action plan
Assigned for specific capital projects
Assigned for MA billings
Assigned for international baccalaureate
Unassigned – health and safety restricted account deficit
Unassigned
Total fund balances
-63-
38,240,825
1,520,476
737,121
42,509,106
1,009,386
1,342,384
262,558
$
Total liabilities, deferred inflows of resources, and fund balances
136,308,506
924,326
$
73,478,636
843,620
74,322,256
64,486,458
1,111,248
65,597,706
1,319,079
231,308
4,242,002
3,121,370
251,476
20,352,350
3,675,102
313,825
178,248
3,355,603
360,229
816,099
3,713,577
4,021,575
15,821,504
588,177
5,783,525
2,682,488
3,449,215
3,134,743
5,118,574
802,516
62,585
(964,505)
44,983,091
127,413,756
1,342,384
262,558
3,156,335
2,890,330
924,326
16,674,715
3,574,876
380,981
544,582
4,126,139
457,959
682,771
3,713,577
3,731,318
14,592,025
620,480
7,495,839
864,807
3,874,802
3,359,384
10,000,000
–
–
(1,119,717)
40,749,949
122,900,420
233,169,367
$
222,854,688
General Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
(With Comparative Totals for the Year Ended June 30, 2014)
2014
2015
Budget
Revenue
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenue
Expenditures
Current
Administration
Salaries
Employee benefits
Purchased services
Supplies and materials
Capital expenditures
Other expenditures
Total administration
Salaries
Employee benefits
Purchased services
Other expenditures
Total district support services
Salaries
Employee benefits
Purchased services
Other expenditures
Total elementary and secondary
regular instruction
$
71,024,592
150,000
11,540,531
348,145,439
13,126,112
443,986,674
Over (Under)
Budget
Actual
$
69,954,018
100,511
12,381,486
352,363,108
12,773,973
447,573,096
$
(1,070,574)
(49,489)
840,955
4,217,669
(352,139)
3,586,422
Actual
$
41,335,155
88,954
12,239,965
359,082,266
12,875,999
425,622,339
8,203,234
2,325,343
291,762
62,893
102,802
117,947
11,103,981
8,203,859
2,311,101
293,932
18,591
7,285
117,531
10,952,299
625
(14,242)
2,170
(44,302)
(95,517)
(416)
(151,682)
7,778,436
2,316,603
282,190
39,611
8,059
116,473
10,541,372
6,534,927
2,287,601
2,656,937
737,336
760,775
(25,209)
12,952,367
6,470,189
2,242,212
2,542,440
728,231
359,385
(241,571)
12,100,886
(64,738)
(45,389)
(114,497)
(9,105)
(401,390)
(216,362)
(851,481)
6,014,716
2,153,574
2,613,550
497,941
406,927
(321,694)
11,365,014
140,471,681
43,312,227
7,123,917
6,873,570
7,995,987
250,278
134,718,933
42,169,335
7,786,930
5,400,670
7,895,393
292,230
(5,752,748)
(1,142,892)
663,013
(1,472,900)
(100,594)
41,952
133,664,512
42,324,952
7,317,010
5,428,405
5,023,136
441,961
206,027,660
198,263,491
(7,764,169)
194,199,976
(continued)
-64-
General Fund
Budget and Actual (continued)
2014
2015
Budget
Actual
Over (Under)
Budget
Actual
Expenditures (continued)
Current (continued)
Salaries
Employee benefits
Purchased services
Other expenditures
Total vocational education instruction
6,344,261
2,111,864
329,531
272,386
45,847
14,218
9,118,107
6,604,181
2,190,662
335,053
294,509
31,539
5,176
9,461,120
259,920
78,798
5,522
22,123
(14,308)
(9,042)
343,013
6,090,673
1,934,563
354,775
310,424
49,843
15,847
8,756,125
Salaries
Employee benefits
Purchased services
Other expenditures
Total special education instruction
57,690,943
22,196,646
3,892,520
974,440
378,224
(92,439)
85,040,334
57,736,962
21,631,330
1,919,838
623,824
273,948
312,381
82,498,283
46,019
(565,316)
(1,972,682)
(350,616)
(104,276)
404,820
(2,542,051)
55,767,158
21,063,356
2,403,023
644,798
905,845
422,802
81,206,982
383,237
62,818
137,834
14,186
–
4,080
602,155
392,686
56,299
132,593
13,100
1,434
4,046
600,158
9,449
(6,519)
(5,241)
(1,086)
1,434
(34)
(1,997)
–
–
–
–
–
–
–
Salaries
Employee benefits
Purchased services
Other expenditures
Total instructional support services
25,882,705
7,568,803
2,717,131
1,805,951
4,514,994
284,510
42,774,094
23,708,310
7,157,542
2,998,566
1,511,125
3,465,421
75,030
38,915,994
(2,174,395)
(411,261)
281,435
(294,826)
(1,049,573)
(209,480)
(3,858,100)
22,111,063
6,745,875
1,736,870
1,525,745
420,667
192,328
32,732,548
Salaries
Employee benefits
Purchased services
Other expenditures
Total pupil support services
12,828,890
4,079,543
22,729,545
647,282
14,355
53,371
40,352,986
12,566,707
4,017,728
22,041,703
624,966
85,432
8,012
39,344,548
(262,183)
(61,815)
(687,842)
(22,316)
71,077
(45,359)
(1,008,438)
12,178,481
3,908,822
21,883,611
550,747
129,447
110,006
38,761,114
Community services
Salaries
Employee benefits
Purchased services
Other expenditures
Total community services
(continued)
-65-
General Fund
Budget and Actual (continued)
2015
Expenditures (continued)
Current (continued)
Sites and buildings
Salaries
Employee benefits
Purchased services
Other expenditures
Total sites and buildings
Purchased services
Debt service
Principal
Total debt service
Total expenditures
2014
Over (Under)
Budget
Budget
Actual
Actual
11,841,866
4,193,211
11,028,275
2,870,026
5,653,951
55,212
35,642,541
11,870,567
4,161,913
11,482,664
3,018,336
6,674,999
300,459
37,508,938
28,701
(31,298)
454,389
148,310
1,021,048
245,247
1,866,397
11,564,776
4,096,511
12,049,944
2,911,035
8,066,345
50,087
38,738,698
1,050,000
885,282
(164,718)
1,053,303
872,185
1,047,966
1,920,151
864,230
1,047,047
1,911,277
(7,955)
(919)
(8,874)
891,200
262,207
1,153,407
446,584,376
432,442,276
(14,142,100)
418,508,539
Excess (deficiency) of revenue over
expenditures
(2,597,702)
15,130,820
17,728,522
7,113,800
Transfers (out)
–
1,919,545
(8,799,153)
(6,879,608)
248,173
3,182,545
(8,790,770)
(5,360,052)
248,173
1,263,000
8,383
1,519,556
924,326
–
(1,254,220)
(329,894)
(9,477,310)
9,770,768
19,248,078
6,783,906
$
Fund balances
122,900,420
(5,257,432)
117,642,988
$ 127,413,756
End of year
-66-
$
116,116,514
–
116,116,514
$ 122,900,420
as of June 30, 2015 and 2014
2015
Assets
Receivables
Inventory
Prepaid items
$
4,644,349
2014
$
175
491,503
18,364
129,310
14,840
Total assets
Liabilities
Salaries payable
Unearned revenue
Total liabilities
5,011
446,049
–
174,101
11,335
$
5,298,541
$
7,028,124
$
117,113
231,253
–
96,548
444,914
$
96,910
262,572
350
145,257
505,089
Fund balances
Restricted for food service
Total fund balances
129,310
14,840
4,709,477
4,853,627
Total liabilities and fund balances
$
-67-
6,391,628
5,298,541
174,101
11,335
6,337,599
6,523,035
$
7,028,124
Budget and Actual
2014
2015
Budget
Revenue
Local sources
Investment earnings
Other – primarily meal sales
State sources
Federal sources
Total revenue
$
Expenditures
Current
Salaries
Employee benefits
Purchased services
Other expenditures
Capital outlay
Total expenditures
5,000
9,431,521
989,485
8,962,099
19,388,105
Actual
$
6,287,340
2,269,024
859,418
8,684,178
40,000
1,481,200
19,621,160
$
4,169
8,156,347
1,142,853
8,981,812
18,285,181
6,558,223
2,262,081
695,644
9,515,375
47,521
875,745
19,954,589
(233,055)
(1,669,408)
Fund balances
Beginning of year
Over (Under)
Budget
$
(831)
(1,275,174)
153,368
19,713
(1,102,924)
Actual
$
270,883
(6,943)
(163,774)
831,197
7,521
(605,455)
333,429
6,070,813
2,228,942
746,513
9,084,980
36,647
546,313
18,714,208
$ (1,436,353)
(595,314)
6,523,035
$
End of year
-68-
4,853,627
2,707
8,739,814
787,998
8,588,375
18,118,894
7,118,349
$
6,523,035
as of June 30, 2015 and 2014
2015
Assets
Receivables
Current taxes
Delinquent taxes
Prepaid items
$
2014
6,376,506
$
1,696,351
50,652
33,127
808,873
22,548
25,109
Total assets
Liabilities
Salaries payable
Unearned revenue
Total liabilities
6,194,083
1,673,676
66,547
71,265
815,569
–
18,386
$
9,013,166
$
8,839,526
$
485,957
277,532
570,344
170,046
1,503,879
$
479,172
334,991
565,874
134,802
1,514,839
2,992,000
36,854
3,028,854
3,088,501
48,130
3,136,631
Fund balances
Restricted for community education programs
Restricted for early childhood family education
Restricted for school readiness
Restricted for adult basic education
Restricted for community service
Total fund balances
25,109
2,728,868
714,270
324,172
280,766
407,248
4,480,433
18,386
2,833,762
437,545
213,382
322,871
362,110
4,188,056
$
-69-
9,013,166
$
8,839,526
Budget and Actual
2015
Revenue
Local sources
Property taxes
Investment earnings
Other – primarily tuition and fees
State sources
Federal sources
Total revenue
Budget
Actual
$ 3,068,475
2,600
10,695,258
5,438,293
191,239
19,395,865
$ 3,074,063
4,291
11,099,786
5,541,750
191,239
19,911,129
11,492,512
3,570,212
2,885,868
1,358,883
26,682
127,808
11,976,058
3,335,246
2,904,383
1,281,433
20,638
142,704
483,546
(234,966)
18,515
(77,450)
(6,044)
14,896
11,984,654
3,500,747
2,896,039
1,188,653
21,516
111,116
–
–
19,461,965
12,934
893
19,674,289
12,934
893
212,324
12,509
1,317
19,716,551
(66,100)
236,840
302,940
63,920
55,537
(2,180)
292,377
Expenditures
Current
Salaries
Employee benefits
Purchased services
Other expenditures
Capital outlay
Debt service
Principal
Total expenditures
over expenditures
Transfers in
2014
Over (Under)
Budget
$
Fund balances
Beginning of year
End of year
-70-
$
5,588
1,691
404,528
103,457
–
515,264
(8,383)
$
294,557
Actual
$ 1,584,622
2,132
11,181,266
6,688,234
189,497
19,645,751
(70,800)
45,925
(24,875)
4,188,056
4,212,931
$ 4,480,433
$ 4,188,056
as of June 30, 2015 and 2014
2015
Assets
Receivables
$
Total assets
Liabilities
Salaries payable
Due to other funds
Total liabilities
Fund balances (deficit)
Restricted for building projects funded by
certificates of participation
Unassigned – alternative facilities program
restricted account deficit
Total fund balances
Total liabilities and fund balances
749,866
12,326,048
$
–
19,918,274
2,114
123,691
578
–
$ 13,201,719
$ 19,918,852
$
$
–
4,825,283
–
–
4,825,283
75
5,700,368
673
1,009,386
6,710,502
8,924,575
15,733,469
(548,139)
8,376,436
(2,525,119)
13,208,350
$ 13,201,719
-71-
2014
$ 19,918,852
Budget and Actual
2015
Budget
Revenue
Local sources
Investment earnings
Expenditures
Capital outlay
Salaries
Employee benefits
Purchased services
Debt service
Total expenditures
over expenditures
Transfers in
Total other financing sources
$
Actual
–
$
2,352
2014
Over (Under)
Budget
$
2,352
Actual
$
1,531
118,505
46,863
2,474,480
23,595,385
101,032
40,915
1,231,910
20,827,042
(17,473)
(5,948)
(1,242,570)
(2,768,343)
97,639
40,701
2,206,671
13,286,172
–
26,235,233
113,760
22,314,659
113,760
(3,920,574)
246,130
15,877,313
(26,235,233)
(22,312,307)
3,922,926
(15,875,782)
8,736,827
8,333
8,735,233
17,480,393
8,736,827
8,333
8,735,233
17,480,393
$ (8,754,840)
(4,831,914)
Fund balances
Beginning of year
End of year
$
-72-
$
–
–
–
–
23,970,674
2,710,960
1,208,295
27,889,929
3,922,926
12,014,147
13,208,350
1,194,203
8,376,436
$ 13,208,350
Debt Service Fund
Balance Sheet by Account
as of June 30, 2015
(With Comparative Total Amounts as of June 30, 2014)
Regular
Debt Service
Account
OPEB
Debt Service
Account
$ 6,701,351
$ 1,360,075
$ 8,061,426
$ 13,178,577
5,771,781
314,080
333
1,207,914
31,269
40
6,979,695
345,349
373
11,809,593
452,688
483
Assets
Receivables
Current taxes
Delinquent taxes
Total assets
Liabilities
Totals
2015
2014
$
12,787,545
$
2,599,298
$
15,386,843
$
25,441,341
$
–
$
–
$
–
$
1,300
8,467,451
231,804
8,699,255
2,143,661
22,289
2,165,950
10,611,112
254,093
10,865,205
20,441,352
330,585
20,771,937
Fund balances
Restricted for debt service
4,088,290
433,348
4,521,638
4,668,104
$
12,787,545
-73-
$
2,599,298
$
15,386,843
$
25,441,341
Debt Service Fund
Schedule of Revenue, Expenditures, and Changes in Fund Balances by Account
Budget and Actual
Revenue
Local sources
Property taxes
Investment earnings
State sources
Total revenue
Budget
Regular
Debt Service
Account
$ 20,416,121
–
11,000
20,427,121
$ 18,196,385
7,115
3,338
18,206,838
17,265,000
3,218,845
10,000
20,493,845
16,295,000
2,070,375
9,840
18,375,215
Expenditures
Debt service
Principal
Interest
Fiscal charges and other
Total expenditures
$
(66,724)
2015
Actual
OPEB
Debt Service
Account
$
(168,377)
Fund balances
Beginning of year
$
-74-
4,088,290
2,139,500
927
404
2,140,831
$ 20,335,885
8,042
3,742
20,347,669
970,000
1,148,470
450
2,118,920
17,265,000
3,218,845
10,290
20,494,135
21,911
4,256,667
End of year
Total
(146,466)
411,437
$
433,348
4,668,104
$
4,521,638
2014
Over (Under)
Budget
$
(80,236)
8,042
(7,258)
(79,452)
Actual
$ 22,793,768
5,214
4,829
22,803,811
–
–
290
290
$
18,985,000
3,725,670
7,741
22,718,411
(79,742)
85,400
4,582,704
$
4,668,104
-75-
Combining Statement of Net Position
as of June 30, 2015
(With Comparative Totals as of June 30, 2014)
Workers’
Dental
Health
Compensation
Benefits
Benefits
Benefits
Self-Insurance Self-Insurance Self-Insurance
Assets
Current assets
Receivables
Total current assets
2014
$ 1,921,352
$ 24,808,732
$ 2,460,831
$ 29,190,915
$ 22,320,168
–
1,921,352
–
24,808,732
–
2,460,831
–
29,190,915
300
22,320,468
154,621
661,904
210,986
1,027,511
221,861
7,999,448
6,000,000
14,221,309
19,929
–
2,000,000
2,019,929
396,411
8,661,352
8,210,986
17,268,749
1,485,781
1,566,112
10,179,907
13,231,800
893,841
$ 10,587,423
440,902
$ 11,922,166
$ 9,088,668
Liabilities
Current liabilities
Unearned revenue
Total current liabilities
Net position
Unrestricted
Totals
2015
$
-76-
$
Combining Statement of Revenue, Expenses, and Changes in Net Position
Operating revenue
Dental
Benefits
Self-Insurance
Health
Benefits
Self-Insurance
Workers’
Compensation
Benefits
Self-Insurance
2015
2014
$ 4,607,377
$ 49,732,846
$ 1,311,678
$ 55,651,901
$ 57,645,648
4,394,526
–
–
4,394,526
–
47,236,034
–
47,236,034
–
–
1,202,240
1,202,240
4,394,526
47,236,034
1,202,240
52,832,800
4,421,627
50,235,944
1,225,974
55,883,545
212,851
2,496,812
109,438
2,819,101
1,762,103
662
11,240
2,495
14,397
7,122
213,513
2,508,052
111,933
2,833,498
1,769,225
–
–
1,000,000
–
–
(1,000,000)
213,513
3,508,052
(888,067)
680,328
7,079,371
893,841
$ 10,587,423
Operating expenses
Dental benefit claims
Health benefit claims
Workers’ compensation claims
Total operating expenses
Nonoperating revenue
Investment earnings
Income (loss) before transfers
Transfers in
Transfers (out)
Changes in net position
Net position
Beginning of year
End of year
$
-77-
$
Totals
1,000,000
(1,000,000)
–
–
2,833,498
1,769,225
1,328,969
9,088,668
7,319,443
440,902
$ 11,922,166
$ 9,088,668
Combining Statement of Cash Flows
Cash flows from operating activities
Payments for dental claims
Payments for health claims
Payments for workers’ compensation claims
Dental
Benefits
Self-Insurance
Health
Benefits
Self-Insurance
Workers’
Compensation
Benefits
Self-Insurance
$
$
$
Cash flows from noncapital financing activities
Transfers in
Transfers (out)
Net cash flows from noncapital financing activities
Cash flows from investing activities
Investment income received
Net change in cash and cash equivalents
Cash and cash equivalents
Beginning of year
End of year
Reconciliation of operating income (loss) to net
cash flows from operating activities
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Changes in assets and liabilities
Accounts receivable
Receivable from fiduciary fund
Unearned revenue
5,248,936
(4,509,054)
–
–
739,882
–
–
–
1,000,000
–
1,000,000
662
11,240
740,544
7,020,056
1,180,808
17,788,676
–
(1,000,000)
(1,000,000)
2,495
(889,853)
3,350,684
1,921,352
$
24,808,732
$
2,460,831
$
212,851
$
2,496,812
$
109,438
$
-78-
1,311,978
–
–
(1,204,326)
107,652
$
–
–
19,858
641,559
(134,386)
56,186,527
–
(50,177,711)
–
6,008,816
739,882
–
–
(1,107,142)
6,453,681
(1,834,535)
$
6,008,816
300
–
(2,086)
–
–
$
107,652
Totals
2015
$
62,747,441
(4,509,054)
(50,177,711)
(1,204,326)
6,856,350
2014
$
1,000,000
(1,000,000)
–
58,046,114
(4,387,248)
(50,089,947)
(1,237,552)
2,331,367
–
–
–
14,397
7,122
6,870,747
2,338,489
22,320,168
19,981,679
$
29,190,915
$
22,320,168
$
2,819,101
$
1,762,103
300
–
(1,089,370)
7,095,240
(1,968,921)
$
6,856,350
7,553
11,516
149,154
381,397
19,644
$
2,331,367
-79-
SECTION III
STATISTICAL SECTION
(UNAUDITED)
STATISTICAL SECTION (UNAUDITED)
This section of Independent School District No. 11’s (the District) comprehensive annual financial report (CAFR) presents
detailed information as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the District’s overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the District’s financial performance and
well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the District’s most significant local revenue source,
property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability of the District’s current levels of
outstanding debt and the District’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which
the District’s financial activities take place.
Operating Indicators
These schedules contain service and infrastructure data to help the reader understand how the information in the
District’s financial report relates to the services the District provides, and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the District’s CAFR for the relevant
year.
Net Position by Component
Last Ten Fiscal Years
2006
Restricted
Unrestricted
Total primary government
net position
Note:
$
94,169,673
45,716,936
(3,098,697)
$ 136,787,912
2007
2008
$ 103,559,206
40,562,778
(5,189,317)
$
98,264,866
22,098,520
(3,641,375)
$ 138,932,667
$ 116,722,011
Fiscal Year
2009
$ 109,722,213
22,983,626
4,492,436
$ 137,198,275
The District implemented GASB Statement No. 68 in fiscal 2015, reported as a change in accounting principle as
a result of implementing this standard, which decreased unrestricted net position by approximately
$292.4 million.
Source: District Finance Department
-80-
2010
2011
2012
2013
2014
2015
$ 118,046,237
28,688,848
(19,078,814)
$ 134,393,391
28,206,857
9,462,373
$ 151,721,969
35,334,414
24,678,924
$ 168,411,895
38,244,553
27,153,481
$ 185,917,028
46,906,014
27,446,986
$ 204,073,301
48,287,453
(251,620,247)
$ 127,656,271
$ 172,062,621
$ 211,735,307
$ 233,809,929
$ 260,270,028
$
-81-
740,507
Change in Net Position
Expenses
Administration
Sites and buildings
Food service
Community service
Total governmental activities expenses
Program revenues
Food service
Community service
All other
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net expense
General revenues and other changes in net position
Taxes
Property taxes, levied for general purposes
Property taxes, levied for community service
Property taxes, levied for debt service
Other general revenues
Gain on sale of capital assets
Investment earnings
Total general revenues and other changes in
net position
Fiscal Year
2009
2006
2007
2008
$ 15,856,222
13,601,374
219,315,713
11,030,033
85,078,055
24,931,076
55,204,314
–
1,017,059
–
18,767,016
8,783,674
453,584,536
$ 15,602,842
12,694,649
235,567,011
10,676,759
87,767,853
27,417,006
59,684,312
–
1,012,306
–
19,755,850
8,968,242
479,146,830
$ 14,324,736
12,446,364
198,188,206
9,081,539
74,986,625
28,480,756
39,752,540
33,827,044
879,414
17,458,967
19,352,118
8,564,752
457,343,061
$ 11,965,421
12,087,614
192,168,497
9,621,850
74,923,903
32,716,593
38,868,021
31,139,405
871,956
16,793,801
19,080,232
9,450,824
449,688,117
–
–
–
–
70,071,221
81,710,305
8,324,988
160,106,514
–
–
–
–
72,697,646
81,556,485
6,969,351
161,223,482
5,215,416
1,386,789
11,144,495
10,600,595
191,574
79,717,453
7,863,436
116,119,758
4,782,107
1,282,952
11,466,235
10,569,070
157,058
82,482,714
7,800,321
118,540,457
(293,478,022)
(317,923,348)
(341,223,303)
(331,147,660)
14,134,808
1,374,364
18,407,933
260,388,674
1,850,811
–
4,782,573
33,889,475
2,910,932
21,039,474
254,087,446
1,740,270
–
6,400,506
51,138,246
3,006,795
18,744,381
254,752,006
1,212,821
–
4,592,636
71,223,509
2,849,844
19,885,334
248,581,634
5,774,559
–
3,309,044
300,939,163
320,068,103
333,446,885
351,623,924
$ 7,461,141
$ 2,144,755
$ (7,776,418)
$ 20,476,264
Note 1: Information for the charges for services by function for years prior to 2008 is not readily available.
Note 2: The District reported a change in accounting principle and a prior period adjustment in 2015, which are not reflected
in the amounts presented above.
-82-
2010
2011
2012
2013
2014
2015
$ 12,191,330
12,163,823
206,133,084
10,870,266
87,815,046
31,561,768
38,666,168
33,571,911
1,003,699
17,574,773
20,041,331
9,055,586
480,648,785
$ 8,942,790
11,972,285
176,665,426
8,547,752
72,592,029
27,163,858
37,326,678
36,959,925
968,341
17,744,008
18,410,301
7,917,418
425,210,811
$ 10,233,746
12,001,699
184,325,079
8,973,286
79,465,438
28,429,820
37,617,123
30,588,570
992,218
17,252,092
18,875,187
5,134,078
433,888,336
$ 10,633,802
13,223,553
193,662,082
9,639,709
79,255,311
30,173,999
38,306,337
30,375,753
1,001,821
17,241,737
18,771,261
4,940,345
447,225,710
$ 10,133,357
11,726,589
196,952,338
9,138,680
82,942,593
33,232,797
38,509,921
33,547,953
1,053,303
18,488,692
19,602,487
4,243,607
459,572,317
$ 11,029,312
12,153,009
196,696,425
10,048,896
82,481,544
38,907,381
39,106,800
33,843,024
885,282
19,963,114
20,049,915
4,118,313
469,283,015
4,724,660
1,197,134
10,660,592
10,571,266
213,341
91,412,242
4,708,110
123,487,345
4,547,812
242,346
9,913,840
10,416,105
200,039
89,071,686
4,783,727
119,175,555
3,937,353
215,666
9,668,635
10,583,621
221,038
84,615,121
5,749,830
114,991,264
3,347,234
191,179
9,213,758
10,801,625
357,567
82,517,660
5,447,669
111,876,692
3,356,460
2,546,223
8,739,814
11,181,266
392,714
87,883,921
5,944,277
120,044,675
3,304,546
219,969
8,156,347
11,099,786
557,773
92,885,298
6,732,090
122,955,809
(357,161,440)
(306,035,256)
(318,897,072)
(335,349,018)
(339,527,642)
(346,327,206)
72,177,783
3,254,522
20,897,117
247,246,921
1,994,285
–
2,048,808
109,278,670
4,767,353
21,624,897
210,094,921
3,574,267
–
1,101,498
74,316,764
2,976,229
21,473,274
256,827,658
2,124,746
644,882
206,205
73,009,941
3,088,505
22,352,514
254,009,066
4,775,360
–
188,254
41,212,655
1,579,792
22,754,066
294,389,000
5,944,568
–
107,660
69,686,390
3,062,787
20,259,393
282,002,635
8,299,198
1,060,004
133,762
347,619,436
350,441,606
358,569,758
357,423,640
365,987,741
384,504,169
$ (9,542,004)
$ 44,406,350
$ 39,672,686
$ 22,074,622
$ 26,460,099
$ 38,176,963
-83-
Summary of Governmental Revenues by Source – Government-Wide
(Accrual Basis of Accounting)
Charges
for Services
Fiscal Year
2006
$
Program Revenues
Operating
Grants and
Contributions
70,071,221
$
81,710,305
General Revenues
Capital
Grants and
Contributions
$
8,324,988
General Grants
and Aids
Property Taxes
$
33,917,105
$
260,388,674
2007
72,697,646
81,556,485
6,969,351
57,839,881
254,087,446
2008 (2)
28,538,869
79,717,453
7,863,436
72,889,422
254,752,006
2009
28,257,422
82,482,714
7,800,321
93,958,687
248,581,634
2010
27,366,993
91,412,242
4,708,110
96,329,422
247,246,921
2011
25,320,142
89,071,686
4,783,727
135,670,920
210,094,921
2012
24,626,313
84,615,121
5,749,830
98,766,267
256,827,658
2013
23,911,363
82,517,660
5,447,669
98,450,960
254,009,066
2014
26,216,477
87,883,921
5,944,277
65,546,513
294,389,000
2015
23,338,421
92,885,298
6,732,090
93,008,570
282,002,635
Note:
The change in “tax shift” as approved in legislation impacted the amount of tax revenue recognized in fiscal
years 2006, 2011, and 2014. Changes in the amount of revenue recognized due to the tax shift are offset by an
adjustment to state aid payments by an equal amount.
(1)
Other includes investment earnings and gain on sale of capital assets.
(2)
Taxes for restricted funds were allocated to program revenues prior to 2008.
Source:
District Finance Department
-84-
Other (1)
$
6,633,384
Total
$
461,045,677
8,140,776
481,291,585
5,805,457
449,566,643
9,083,603
470,164,381
4,043,093
471,106,781
4,675,765
469,617,161
2,975,833
473,561,022
4,963,614
469,300,332
6,052,228
486,032,416
9,492,964
507,459,978
-85-
Summary of Governmental Expenses by Function – Government-Wide
Elementary and
Secondary
Regular
Instruction
Vocational
Education
Instruction
Special
Education
Instruction
Instructional
Support
Services
Fiscal
Year
Administration
District
Support
Services
2006
$ 15,856,222
$ 13,601,374
$ 219,315,713
$ 11,030,033
$ 85,078,055
$ 24,931,076
2007
15,602,842
12,694,649
235,567,011
10,676,759
87,767,853
27,417,006
2008
14,324,736
12,446,364
198,188,206
9,081,539
74,986,625
28,480,756
2009
11,965,421
12,087,614
192,168,497
9,621,850
74,923,903
32,716,593
2010
12,191,330
12,163,823
206,133,084
10,870,266
87,815,046
31,561,768
2011
8,942,790
11,972,285
176,665,426
8,547,752
72,592,029
27,163,858
2012
10,233,746
12,001,699
184,325,079
8,973,286
79,465,438
28,429,820
2013
10,633,802
13,223,553
193,662,082
9,639,709
79,255,311
30,173,999
2014
10,133,357
11,726,589
196,952,338
9,138,680
82,942,593
33,232,797
2015
11,029,312
12,153,009
196,696,425
10,048,896
82,481,544
38,907,381
(1)
Sites and buildings were allocated to district program functions prior to 2008.
(2)
Food service was allocated to pupil support services prior to 2008.
Source:
-86-
Pupil
Support
Services
$ 55,204,314
Sites and
Buildings (1)
$
–
Fiscal
and Other
Fixed Costs
$
1,017,059
Food
Service (2)
$
Interest
and Fiscal
Charges
Community
Service
–
$ 18,767,016
$
Total
8,783,674
$ 453,584,536
59,684,312
–
1,012,306
–
19,755,850
8,968,242
479,146,830
39,752,540
33,827,044
879,414
17,458,967
19,352,118
8,564,752
457,343,061
38,868,021
31,139,405
871,956
16,793,801
19,080,232
9,450,824
449,688,117
38,666,168
33,571,911
1,003,699
17,574,773
20,041,331
9,055,586
480,648,785
37,326,678
36,959,925
968,341
17,744,008
18,410,301
7,917,418
425,210,811
37,617,123
30,588,570
992,218
17,252,092
18,875,187
5,134,078
433,888,336
38,306,337
30,375,753
1,001,821
17,241,737
18,771,261
4,940,345
447,225,710
38,509,921
33,547,953
1,053,303
18,488,692
19,602,487
4,243,607
459,572,317
39,106,800
33,843,024
885,282
19,963,114
20,049,915
4,118,313
469,283,015
-87-
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
2006
General Fund
Reserved
Unreserved
Nonspendable
Restricted
Assigned
Unassigned
Total General Fund
All other governmental funds
Reserved
Unreserved, reported in
Special revenue funds
Building construction funds
Debt service funds
Nonspendable
Restricted
Unassigned
2007
Fiscal Year
2009
2008
$
17,779,330
33,259,742
–
–
–
–
$
12,046,812
26,236,568
–
–
–
–
$
14,320,132
23,722,187
–
–
–
–
$
11,280,658
32,216,136
–
–
–
–
$
51,039,072
$
38,283,380
$
38,042,319
$
43,496,794
$
40,446,778
$
33,705,435
$
22,979,478
$
69,043,097
3,559,788
–
–
–
–
–
3,540,510
–
–
–
–
–
3,724,137
–
6,797,002
–
–
–
5,907,398
(638,504)
5,444,891
–
–
–
Total all other governmental funds
$
44,006,566
$
37,245,945
$
33,500,617
$
79,756,882
Total all governmental funds
$
95,045,638
$
75,529,325
$
71,542,936
$ 123,253,676
Note: The District implemented GASB Statement No. 54 in fiscal 2011. The new fund balance classifications under GASB
Statement No. 54 are not available for years prior to fiscal 2011.
-88-
2010
2011
2012
2013
2014
2015
$
15,754,544
46,869,134
–
–
–
–
$
–
–
2,004,085
13,517,491
26,197,908
39,420,616
$
–
–
1,935,177
19,458,142
47,037,640
39,681,892
$
–
–
1,801,307
22,283,719
52,945,089
39,086,399
$
–
–
1,604,942
32,730,243
48,935,003
39,630,232
$
–
–
1,550,387
35,850,205
45,994,578
44,018,586
$
62,623,678
$
81,140,100
$ 108,112,851
$
116,116,514
$
122,900,420
$
127,413,756
$
49,541,355
$
–
$
$
–
$
–
$
–
6,920,584
(271,669)
5,639,470
–
–
–
$
–
–
–
195,041
15,977,662
–
–
–
–
–
258,932
17,042,151
–
–
–
–
369,908
16,738,279
–
–
–
–
203,822
30,908,842
(2,525,119)
–
–
–
169,259
22,611,014
(548,139)
61,829,740
$
16,172,703
$
17,301,083
$
17,108,187
$
28,587,545
$
22,232,134
$ 124,453,418
$
97,312,803
$ 125,413,934
$
133,224,701
$
151,487,965
$
149,645,890
-89-
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Revenues
Local sources
Property taxes
Investment earnings
Other
State sources
Federal sources
Total revenues
2007
2008
$ 45,207,258
4,156,065
34,555,586
316,415,537
18,233,879
418,568,325
$ 68,079,087
5,381,250
34,866,212
308,838,462
17,699,702
434,864,713
$ 72,483,626
3,674,685
34,005,116
318,269,722
19,809,747
448,242,896
$ 93,387,428
2,958,133
34,031,981
318,400,135
20,464,534
469,242,211
13,271,885
11,250,153
174,072,805
9,021,500
67,636,060
22,899,708
33,739,585
29,052,585
1,001,991
16,478,362
17,146,320
16,340,490
12,942,046
10,365,252
184,932,122
8,623,588
69,213,018
25,401,289
36,866,130
32,768,304
1,003,351
17,408,403
18,030,933
13,495,034
13,406,041
11,789,578
185,741,918
8,515,599
70,333,451
26,905,976
38,804,425
34,155,601
879,414
17,134,262
18,513,737
8,122,753
11,860,912
11,666,156
188,636,275
9,443,737
73,502,998
31,764,112
39,194,088
34,685,434
871,956
16,523,527
19,019,688
3,175,718
12,722,594
9,160,059
433,794,097
14,169,036
9,162,520
454,381,026
15,977,123
7,713,573
457,993,451
16,199,730
8,149,523
464,693,854
(15,225,772)
(19,516,313)
(9,750,555)
4,548,357
–
–
13,123,199
–
166,512
–
10,500
6,570,248
(4,370,248)
15,500,211
–
–
–
–
–
–
–
4,608,028
(4,608,028)
–
–
–
–
–
–
–
–
4,918,923
(4,918,923)
–
–
–
44,200,000
2,334,533
627,850
–
–
2,039,937
(2,039,937)
47,162,383
$ (19,516,313)
$ (9,750,555)
$ 51,710,740
5.29%
5.27%
5.28%
Expenditures
Current
Administration
Sites and buildings
Food service
Community service
Capital outlay
Debt service
Principal
Total expenditures
Excess of revenues over (under) expenditures
Bonded debt issued
Premium on bonded debt issued
Capital lease debt issued
Payment on refunded bonds
Transfers in
Transfers (out)
Debt service as a percentage of noncapital
expenditures
Fiscal Year
2009
2006
$
274,439
5.24%
-90-
2010
2011
2012
2013
2014
2015
$ 96,421,181
1,981,948
33,163,271
288,523,257
51,042,023
471,131,680
$ 135,391,399
1,077,631
31,518,967
274,897,688
26,428,088
469,313,773
$ 98,880,531
189,592
31,369,298
313,974,303
28,600,067
473,013,791
$ 98,703,574
177,452
32,665,653
315,511,487
22,483,978
469,542,144
$ 65,713,545
100,538
32,161,045
366,563,327
21,653,871
486,192,326
$ 93,363,966
119,365
31,637,619
359,051,453
21,947,024
506,119,427
11,558,435
11,664,749
194,733,999
10,274,819
83,096,869
29,516,025
38,666,168
33,971,676
1,003,699
16,803,549
19,575,707
1,810,719
9,290,620
12,399,942
178,000,854
8,913,359
75,754,243
28,103,069
37,798,286
36,307,565
968,341
16,294,831
18,598,796
2,340,121
10,006,754
11,742,789
176,331,335
8,539,630
75,376,259
27,033,605
37,617,123
34,700,304
992,218
16,155,238
18,240,232
4,574,803
10,227,558
12,607,515
188,024,007
8,893,957
75,990,125
28,843,873
38,332,832
34,150,919
1,001,821
17,756,306
18,801,768
4,321,994
10,541,372
11,365,014
194,199,976
8,756,125
81,206,982
32,732,548
38,761,114
38,738,698
1,053,303
18,167,895
19,591,609
16,288,612
10,952,299
12,100,886
198,263,491
9,461,120
82,498,283
38,915,994
39,344,548
37,508,938
885,282
19,078,844
20,117,916
23,219,348
16,924,716
8,350,887
477,952,017
17,873,096
8,815,647
451,458,770
18,980,683
5,476,981
445,767,954
18,947,374
4,662,937
462,562,986
19,888,709
4,243,065
495,535,022
18,142,164
4,390,835
514,879,948
(6,820,337)
17,855,003
27,245,837
6,979,158
(9,342,696)
(8,760,521)
–
–
26,490,000
–
132,579
(18,650,000)
47,500
2,144,330
(2,144,330)
8,020,079
–
–
3,925,000
113,903
147,854
(49,185,000)
2,625
2,054,349
(2,054,349)
(44,995,618)
–
–
24,245,000
1,881,183
–
(25,930,000)
659,111
3,734,325
(3,734,325)
855,294
–
–
–
–
831,109
–
–
3,730,131
(3,730,131)
831,109
24,895,000
2,710,960
–
–
–
–
–
1,254,220
(1,254,220)
27,605,960
8,985,000
8,333
–
–
–
–
3,182,545
8,790,770
(8,790,770)
12,175,878
$
1,199,742
5.33%
$ (27,140,615)
$ 28,101,131
6.02%
5.60%
$
7,810,267
5.22%
-91-
$ 18,263,264
5.09%
$
3,415,357
4.64%
Summary of General Fund Changes
Revenues
Expenditures
Other
Financing
Sources (Uses)
–
$ 362,389,600
$ 363,990,980
$ (2,003,736)
$ 51,039,072
51,039,072
–
375,117,099
384,272,544
(3,600,247)
38,283,380
2008
38,283,380
5,935,561
389,638,239
390,895,938
(4,918,923)
38,042,319
2009
38,042,319
–
408,642,009
401,775,447
(1,412,087)
43,496,794
2010
43,496,794
–
410,855,702
414,826,634
23,097,816
62,623,678
2011
62,623,678
–
409,208,764
388,785,847
(1,906,495)
81,140,100
2012
81,140,100
–
413,680,546
383,632,581
(3,075,214)
108,112,851
2013
108,112,851
–
409,927,317
399,025,132
(2,898,522)
116,116,514
2014
116,116,514
–
425,622,339
418,508,539
(329,894)
122,900,420
2015
122,900,420
(5,257,432)
447,573,096
432,442,276
(5,360,052)
127,413,756
Fiscal Year
Beginning
Balance at
July 1
2006
$ 54,644,188
2007
Prior Period
Adjustment
$
-92-
Ending
Balance at
June 30
Summary of General Fund Revenue by Source
Fiscal Year
2006
Local
Property Taxes
$
25,497,405
State Sources
$
308,784,952
Federal Sources
$
12,642,400
Other
$
15,464,843
Total
$
362,389,600
2007
44,413,005
302,292,259
12,194,021
16,217,814
375,117,099
2008
50,674,343
311,826,931
13,213,313
13,923,652
389,638,239
2009
70,709,516
311,503,565
14,029,627
12,399,301
408,642,009
2010
72,085,788
281,909,831
44,750,019
12,110,064
410,855,702
2011
109,040,479
269,456,702
19,264,375
11,447,208
409,208,764
2012
74,387,757
306,833,928
21,171,001
11,287,860
413,680,546
2013
73,193,881
309,864,134
14,055,389
12,813,913
409,927,317
2014
41,335,155
359,082,266
12,875,999
12,328,919
425,622,339
2015
69,954,018
352,363,108
12,773,973
12,481,997
447,573,096
Note:
The change in “tax shift” as approved in legislation impacted the amount of tax revenue recognized in fiscal
years 2006, 2011, and 2014. Changes in the amount of revenue recognized due to the tax shift are offset by an
adjustment to state aid payments by an equal amount.
Source:
-93-
Summary of General Fund Expenditures by Function
Fiscal Year
2006
Administration
District
Support Services
Elementary and
Secondary
Regular
Instruction
$
$
11,250,153
$ 174,072,805
13,271,885
Vocational
Education
Instruction
$
9,021,500
Special
Education
Instruction
$
67,636,060
2007
12,942,046
10,365,252
184,932,122
8,623,588
69,213,018
2008
13,406,041
11,789,578
185,741,918
8,515,599
70,333,451
2009
11,860,912
11,666,156
188,636,275
9,443,737
73,502,998
2010
11,558,435
11,664,749
194,733,999
10,274,819
83,096,869
2011
9,290,620
12,399,942
178,000,854
8,913,359
75,754,243
2012
10,006,754
11,742,789
176,331,335
8,539,630
75,376,259
2013
10,227,558
12,607,515
188,024,007
8,893,957
75,990,125
2014
10,541,372
11,365,014
194,199,976
8,756,125
81,206,982
2015
10,952,299
12,100,886
198,263,491
9,461,120
82,498,283
-94-
Community
Services
$
Instructional
Support Services
–
$
22,899,708
Pupil
Support Services
$
33,739,585
Sites and
Buildings
$
31,240,692
Fiscal and Other
Fixed Cost
Programs and
Debt Service
$
Total
Expenditures
858,592
$ 363,990,980
–
25,401,289
36,866,130
35,086,148
842,951
384,272,544
–
26,905,976
38,804,425
34,155,601
1,243,349
390,895,938
–
31,764,112
39,194,088
34,685,434
1,021,735
401,775,447
–
29,516,025
38,666,168
33,971,676
1,343,894
414,826,634
–
28,103,069
37,798,286
36,307,565
2,217,909
388,785,847
–
27,033,605
37,617,123
34,700,304
2,284,782
383,632,581
–
28,843,873
38,332,832
34,150,919
1,954,346
399,025,132
–
32,732,548
38,761,114
38,738,698
2,206,710
418,508,539
600,158
38,915,994
39,344,548
37,508,938
2,796,559
432,442,276
-95-
Summary of Special Revenue Funds
Revenues and Expenditures
Fiscal Year
Food Service Special
Revenue Fund
Community Service
Special Revenue Fund
Revenue History
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$
17,250,850
17,386,532
18,173,645
18,408,822
17,479,914
17,664,677
17,697,568
18,238,277
18,118,894
18,285,181
$
17,376,315
18,176,536
19,212,771
19,204,821
18,866,052
18,811,063
18,817,413
18,948,175
19,645,751
19,911,129
$
17,146,320
18,030,933
18,708,947
19,119,276
19,612,151
18,668,205
18,416,517
19,020,667
19,716,551
19,674,289
Expenditure History
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$
16,478,362
17,408,403
17,555,985
16,558,873
17,118,945
17,574,838
16,540,233
18,946,709
18,714,208
19,954,589
-96-
Summary of Special Revenue Fund Balances
Year Ended
June 30,
2006
Food Service
Community Service
$
$
3,044,774
2,271,024
2007
3,022,903
2,526,407
2008
3,766,244
3,335,390
2009
5,616,193
3,477,527
2010
6,576,982
3,604,835
2011
6,669,446
3,818,967
2012
7,826,781
4,254,605
2013
7,118,349
4,212,931
2014
6,523,035
4,188,056
2015
4,853,627
4,480,433
-97-
Schedule of Cost per Average Daily Membership
General Fund
Administration
Community services
Sites and buildings
Other fixed costs
Total General Fund
$
295
326
5,335
255
2,220
16
1,047
1,059
1,009
75
11,637
537
529
Debt Service Fund
551
Total fiscal year 2015
$
13,255
Total fiscal year 2014
$
12,865
-98-
Unrestricted General Fund Balance
Compared to Annual Expenditures
Fiscal
Year
2006
Unrestricted
Fund Balance
$
Annual
Expenditures
33,259,742
$
Balance as a
Percentage of
Expenditures
363,990,980
9.14 %
2007
26,236,568
384,272,544
6.83
2008
24,029,780
390,895,938
6.15
2009
33,263,994
401,775,447
8.28
2010
47,259,373
414,826,634
11.39
2011
65,760,880
388,785,847
16.91
2012
86,719,532
383,632,581
22.60
2013
92,031,488
399,025,132
23.06
2014
88,565,235
418,508,539
21.16
2015
90,013,164
432,442,276
20.82
-99-
Property Tax Levies and Collections
Calendar
Year Payable
2005
Total
Certified Levy
$
Current Tax
Collections
63,598,553
$
Percentage of
Current Levies
Collected
62,722,815
98.62
2006
68,795,847
67,581,161
98.23
2007
73,058,335
71,454,015
97.80
2008
93,398,314
91,303,167
97.76
2009
97,288,227
95,354,938
98.01
2010
102,966,073
100,997,386
98.09
2011
102,770,776
101,282,116
98.55
2012
98,639,305
97,390,747
98.73
2013
98,655,488
97,617,616
98.95
2014
92,180,407
91,430,886
99.19
-100-
%
Summary of Delinquent Taxes Receivable
Calendar
Year Payable
1999
2006
$
2007
1,793
2000
4,069
2001
20,225
2002
$
2008
–
$
–
(647)
Balance Due on June 30,
2010
2011
2009
$
–
$
–
$
–
–
–
–
–
11,259
1,290
–
–
–
8,781
11,604
5,243
(3,033)
–
–
2003
82,201
52,290
21,280
13,763
2,298
–
2004
118,857
76,055
40,173
21,039
9,731
1,560
2005
875,738
196,390
114,583
64,939
37,075
23,624
2006
–
1,214,686
399,824
225,271
88,982
44,756
2007
–
–
1,604,320
508,003
209,831
106,419
2008
–
–
–
2,095,147
620,212
302,737
2009
–
–
–
–
1,933,289
610,139
2010
–
–
–
–
–
1,968,687
2011
–
–
–
–
–
–
2012
–
–
–
–
–
–
2013
–
–
–
–
–
–
2014
–
–
–
–
–
–
$ 1,111,664
$ 1,561,637
$ 2,186,713
$ 2,925,129
$ 2,901,418
$ 3,057,922
-101-
2012
$
2013
–
$
2014
–
$
Certified Levy
Including
Credits
2015
–
$
–
$
Percentage
Collected
74,844,632
100.00 %
–
–
–
–
81,531,833
100.00
–
–
–
–
90,928,533
100.00
–
–
–
–
45,076,832
100.00
–
–
–
–
61,957,580
100.00
–
–
–
–
57,848,467
100.00
11,868
–
–
–
63,598,553
100.00
26,361
16,388
–
–
68,795,847
100.00
70,525
44,000
20,572
–
73,058,335
100.00
166,823
100,547
72,881
78,146
93,398,314
99.92
288,105
116,372
97,337
67,897
97,288,227
99.93
530,417
219,672
162,961
116,076
102,966,073
99.89
1,488,660
486,392
252,509
139,577
102,770,776
99.86
–
1,248,558
395,579
110,972
98,639,305
99.89
–
–
1,037,872
285,727
98,655,488
99.71
–
–
–
749,521
92,180,407
99.19
$ 2,582,759
$ 2,231,929
$ 2,039,711
$ 1,547,916
-102-
Assessed Value and Estimated Market Value of Taxable Property
Tax
Capacity (1)
Payable Year
2006
(1)
$
Increase
(Decrease)
194,755,829
11.47 %
2007
216,261,841
2008
Estimated
Market Value
$
Tax Capacity
as a Percent
of Estimated
Market Value
17,767,016,300
1.10 %
11.04
19,531,904,000
1.11
230,907,577
6.77
20,520,568,100
1.13
2009
234,736,680
1.66
21,668,111,433
1.08
2010
222,953,724
(5.02)
19,751,127,739
1.13
2011
206,433,533
(7.41)
17,436,117,350
1.18
2012
186,122,696
(9.84)
16,708,776,172
1.11
2013
176,014,530
(5.43)
15,467,861,750
1.14
2014
177,995,880
1.13
15,436,818,200
1.15
2015
200,738,104
12.78
17,363,954,200
1.16
The tax capacity of a parcel of property is calculated by applying the appropriate classification ratio as defined in
state law to the estimated market valuation of the parcel.
Source: MDE School Tax Report
-103-
Summary of Tax Rates
Year
Payable
Community
Service
General
Debt
Total
Based on Net Tax Capacity
2006
7.181
1.585
11.280
20.046
2007
9.014
1.457
8.882
19.353
2008
6.581
1.274
9.128
16.983
2009
7.296
1.501
9.466
18.263
2010
7.938
1.519
10.482
19.939
2011
11.138
1.594
11.267
23.999
2012
9.352
1.688
12.285
23.325
2013
11.832
1.787
13.182
26.801
2014
15.496
1.720
11.049
28.265
2015
17.006
1.440
4.036
22.482
Based on Market Value
2006
0.15
–
–
0.15
2007
0.14
–
–
0.14
2008
0.24
–
–
0.24
2009
0.22
–
–
0.22
2010
0.26
–
–
0.26
2011
0.25
–
–
0.25
2012
0.27
–
–
0.27
2013
0.27
–
–
0.27
2014
0.21
–
–
0.21
2015
0.21
–
–
0.21
-104-
Principal Taxpayers
Current Year and Nine Years Ago
Taxpayer
Coon Rapids Riverdale Village
Connexus Energy
Minnegasco, Inc.
Inland/Ryan & Inland Village
Target Corporation
Xcel Energy
Riverdale Village
Great River Energy
Lowes Home Centers, Inc.
Federal Cartridge
CCRV Central LLC
Rayman Assoc.
Allina Health System
Type of Business
Retail
Utility
Utility
Commercial
Retail
Utility
Retail
Utility
Retail
Retail
Retail
Commercial
Medical
Source: Springsted, Inc.
-105-
December 31, 2014
Tax Capacity
Percentage of
Total
Tax Capacity
$
1,741,681
987,385
875,980
852,530
685,786
536,837
499,248
444,621
358,896
319,390
–
–
–
0.87 %
0.49
0.44
0.42
0.34
0.27
0.25
0.22
0.18
0.16
–
–
–
$
7,302,354
3.64 %
December 31, 2005
Tax Capacity
Percentage of
Total
Tax Capacity
$
1,048,768
1,074,496
567,777
726,048
1,075,270
693,525
439,014
–
–
–
643,500
516,764
295,828
0.54 %
0.55
0.29
0.37
0.55
0.36
0.23
–
–
–
0.33
0.27
0.15
$
7,080,990
3.64 %
-106-
Taxable Values
Payable
Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Less
Exemption
and Plus
Adjustments
Taxable Value
Personal
Real Estate
Property
$ 194,723,600
215,014,930
229,496,473
231,577,317
217,220,802
197,032,510
174,846,221
159,790,890
159,406,787
181,468,231
$
2,429,503
2,463,593
2,481,102
2,581,555
2,732,020
2,922,535
2,935,375
3,084,048
2,971,154
2,949,756
Anoka County
Total real estate
Personal property
Total real and personal property
$ 146,648,024
2,337,789
$
(2,397,274)
(1,216,682)
(1,069,998)
577,808
3,000,902
6,478,488
8,341,100
13,139,592
15,617,939
16,320,117
Net
Taxable Value
Total
Direct Rate
$ 194,755,829
216,261,841
230,907,577
234,736,680
222,953,724
206,433,533
186,122,696
176,014,530
177,995,880
200,738,104
20.046
19.353
16.983
18.263
19.939
23.999
23.325
26.801
28.265
22.482
Hennepin County
$
34,820,207
611,967
148,985,813
35,432,174
(3,707,957)
(13,607,774)
–
(272,346)
(1,799,926)
(548)
Total contribution
(17,315,731)
(2,072,820)
Initial tax capacity
131,670,082
33,359,354
$ 165,029,436
27,309,464
8,399,204
35,708,668
41,758,558
$ 200,738,104
Adjustments
Subtract captured tax increment
Subtract fiscal disparity contribution
Subtract transmission lines
Add fiscal disparity capacity
Total adjusted tax capacity
$ 158,979,546
$
-107-
Taxable Rates
Fiscal
Year
Direct Rates
Total
Debt
Tax Rate
Only
Anoka
County
Hennepin
County
Andover
Anoka
Overlapping Rates
City of
Brooklyn
Blaine
Center
2006
20.046
11.280
32.096
41.016
31.556
38.742
31.234
46.934
2007
19.353
8.882
30.696
39.110
31.003
37.330
29.658
45.366
2008
16.983
9.128
31.078
38.571
31.276
37.038
29.135
45.081
2009
18.263
9.466
32.078
40.413
32.484
37.685
29.151
47.521
2010
19.939
10.482
35.189
42.056
36.814
40.530
29.510
51.095
2011
23.999
11.267
39.952
45.187
38.748
43.020
32.798
57.217
2012
23.325
12.285
41.613
48.231
42.539
50.348
33.563
64.359
2013
26.801
13.182
44.411
48.884
40.722
54.010
36.740
71.074
2014
28.265
11.049
43.239
49.959
43.197
49.843
36.379
74.133
2015
22.482
4.036
38.123
46.398
37.070
45.014
35.495
70.026
Source: Anoka County and Hennepin County
-108-
Brooklyn
Park
Champlin
Coon
Rapids
Dayton
Fridley
Ham Lake
Nowthen
Oak Grove
Ramsey
37.741
32.639
30.586
42.524
31.941
24.193
16.550
30.706
39.352
36.609
33.812
30.526
44.446
31.349
23.886
15.655
28.123
39.222
39.046
34.130
30.731
43.004
30.324
23.886
17.747
27.406
39.282
39.652
34.175
32.706
43.804
28.676
23.754
18.520
31.187
39.264
44.157
35.016
34.557
50.867
32.295
23.371
19.346
33.013
37.811
50.309
39.212
39.231
48.567
37.027
25.797
22.172
36.328
39.801
56.087
41.195
42.823
57.817
39.615
26.720
23.743
33.462
44.172
61.311
44.772
48.835
64.169
47.362
29.226
27.040
32.676
44.290
60.469
44.803
47.509
65.600
48.577
29.689
29.456
30.142
44.237
56.136
41.240
44.754
57.029
43.508
26.869
26.104
27.186
42.259
-109-
Ratio of Net Bonded Debt Outstanding
Fiscal
Year
2006
Unamortized
Premium
(Discount)
on Bonds
Outstanding
Bonded Debt
$
187,579,521
$
–
Balance on Hand
Net Bonded Debt
$
$
26,920,436
Market Value
160,659,085
$ 17,767,016,300
2007
173,410,485
–
28,239,618
145,170,867
19,531,904,000
2008
176,080,000
–
25,995,936
150,084,064
20,520,568,100
2009
204,210,000
–
71,300,859
132,909,141
21,668,111,433
2010
195,440,000
–
51,918,771
143,521,229
19,751,127,739
2011
133,030,000
–
4,962,768
128,067,232
17,436,117,350
2012
113,190,000
–
4,812,115
108,377,885
16,708,776,172
2013
94,870,000
–
4,582,704
90,287,296
15,467,861,750
2014
75,885,000
2,076,734
4,668,104
73,293,630
15,436,818,200
2015
58,620,000
1,809,462
4,521,638
55,907,824
17,363,954,200
Note:
Unamortized premium (discounts) were not readily available prior to 2014.
Source:
-110-
Percentage of
Net Debt to
Market Value
Net Debt
per Capita
Population
0.90 %
223,054
$
720
0.74
223,243
650
0.73
223,877
670
0.61
227,004
585
0.73
227,752
630
0.73
226,863
565
0.65
228,114
475
0.58
230,796
391
0.47
232,420
315
0.32
234,308
239
-111-
Indirect Debt
June 30, 2015
Long-term general obligation debt being paid from taxes (school building bonds)
Total long-term general obligation debt being paid from taxes
Total unamortized premium (discount) on bonds
Net general obligation debt being paid from taxes
2013/2014
Taxable Net
Tax Capacity
Taxing Unit (a)
Anoka County
Hennepin County
Three Rivers Park District
Anoka County Regional
Railroad Authority
Hennepin County Regional
Railroad Authority
Cities
Andover
Anoka
Blaine
Brooklyn Center
Brooklyn Park
Champlin
Coon Rapids
Dayton
Fridley
Ham Lake
Nowthen
Oak Grove
Ramsey
Metropolitan Council
Metropolitan Transit
(a)
(b)
$
271,469,369
1,367,504,155
993,329,908
58,620,000
1,809,462
$
60,429,462
Debt Applicable to
Tax Capacity in District
Percent
Amount
G.O. Debt (b)
$
$
115,411,281
772,785,000
45,990,000
51.7 %
2.8
3.8
$
59,667,632
21,637,980
1,747,620
270,881,430
25,445,000
51.8
13,180,510
1,367,504,155
36,205,000
2.8
1,013,740
24,818,387
11,195,165
53,390,674
19,665,833
59,796,568
18,577,668
47,862,393
4,632,843
23,103,007
14,232,982
4,263,666
7,177,903
19,356,717
2,999,061,916
2,381,101,627
35,955,000
9,215,000
26,265,000
19,460,000
22,765,000
5,500,000
24,360,000
23,110,000
4,340,000
1,825,000
800,171
1,465,000
31,540,000
15,195,000
247,215,000
93.5
100.0
47.1
13.5
22.3
100.0
100.0
71.4
5.3
93.4
24.3
1.7
88.8
4.7
5.9
33,617,925
9,215,000
12,370,815
2,627,100
5,076,595
5,500,000
24,360,000
16,500,540
230,020
1,704,550
194,442
24,905
28,007,520
714,165
14,585,685
Total overlapping debt
$
251,976,744
Total direct and overlapping debt
$
312,406,206
Only those taxing units with general obligation debt outstanding are included here.
Includes annual appropriation lease obligations and excludes general obligation debt supported by revenues, revenue debt, and
debt supported by state aids.
Note: The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the overlapping entity’s taxable assessed value that is within the District’s boundaries and
dividing it by the overlapping government’s total taxable assessed value.
G.O. Net
Direct Debt
Total 2015 market value: $17,363,954,200
Per capita (234,308 – 2015 District confirmation)
$
-112-
0.35%
258
G.O.
Indirect and Net
Direct Debt*
$
1.80%
1,333
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Fund Expenditures
Fiscal Year
2006
Principal
$
12,722,594
Interest and Fees
$
9,160,059
$
Total
Debt Service
Total
General Fund
Expenditures
21,882,653
$ 363,990,980
Percentage
of Debt
Service to
General Fund
Expenditures
6.01 %
2007
14,169,036
9,162,520
23,331,556
384,272,544
6.07
2008
15,645,000
7,681,761
23,326,761
390,895,938
5.97
2009
16,070,000
8,129,474
24,199,474
401,775,447
6.02
2010
35,260,000
8,325,408
43,585,408 (1)
414,826,634
10.51
2011
66,335,000
8,289,175
74,624,175 (2)
388,785,847
19.19
2012
44,085,000
5,010,100
49,095,100 (3)
383,632,581
12.80
2013
18,320,000
4,337,786
22,657,786
399,025,132
5.68
2014
18,985,000
3,733,411
22,718,411
418,508,539
5.43
2015
17,265,000
3,229,135
20,494,135
432,442,276
4.74
(1)
Includes refunding payment of $18,650,000. Percentage of debt service to General Fund expenditures would have
been 6.00 percent without the refunding payment.
(2)
Includes refunding payments of $49,185,000. Percentage of debt service to General Fund expenditures would have
(3)
Includes refunding payments of $25,930,000. Percentage of debt service to General Fund expenditures would have
-113-
Outstanding Debt by Type
General
Obligation
Bonds
Fiscal
Year
2006
$
187,579,521
Governmental Activities
Unamortized
Certificates of
Premium/
Participation
Discount
$
–
$
–
$
Capital
Leases
610,875
Special
Assessments
$
265,950
Total
Government
$
188,456,346
2007
173,410,485
–
–
324,073
245,050
173,979,608
2008
176,080,000
–
–
161,933
224,150
176,466,083
2009
204,210,000
–
–
680,953
203,250
205,094,203
2010
195,440,000
–
–
518,906
183,160
196,142,066
2011
133,030,000
–
–
5,908,664
163,880
139,102,544
2012
113,190,000
–
–
5,082,981
144,599
118,417,580
2013
94,870,000
–
–
5,287,216
125,320
100,282,536
2014
75,885,000
24,895,000
4,760,799
4,383,507
106,040
110,030,346
2015
58,620,000
33,880,000
4,372,698
3,506,343
86,760
100,465,801
(1)
Based on Schedule of Demographic and Economic Statistics.
Note 1:
Unamortized premium/discount is not readily available prior to 2014.
Note 2:
Details regarding the District’s outstanding debt can be found in the notes to basic financial statements.
-114-
Percentage
of
Personal
Income (1)
2.31 %
Per
Capita (1)
$
845
2.04
779
2.02
788
2.39
903
2.24
861
1.51
613
1.24
519
1.03
435
1.12
473
1.02
429
-115-
Debt Margin
Legal debt limit
(15% of market value)
Less
Total net debt applicable to limit
(See Ratio of Net Bonded Debt
Outstanding Table)
Legal debt margin
Total net debt applicable to limit
as a percentage of debt limit
Total market value
Year Ended
2009
2006
2007
2008
$ 2,665,052,445
$ 2,929,785,600
$ 3,078,085,215
$ 3,250,216,715
160,659,085
145,170,867
150,084,064
132,909,141
$ 2,504,393,360
$ 2,784,614,733
$ 2,928,001,151
$ 3,117,307,574
6.0 %
$ 17,767,016,300
5.0 %
$ 19,531,904,000
-116-
4.9 %
$ 20,520,568,100
4.1 %
$ 21,668,111,433
2010
2011
2012
2013
2014
2015
$ 2,962,669,161
$ 2,615,417,603
$ 2,506,316,426
$ 2,320,179,263
$ 2,315,522,730
$ 2,604,593,130
143,521,229
128,067,232
108,377,885
90,287,296
73,293,630
55,907,824
$ 2,819,147,932
$ 2,487,350,371
$ 2,397,938,541
$ 2,229,891,967
$ 2,242,229,100
$ 2,548,685,306
4.8 %
$ 19,751,127,739
4.9 %
$ 17,436,117,350
4.3 %
$ 16,708,776,172
3.9 %
$ 15,467,861,750
-117-
3.2 %
$ 15,436,818,200
2.1 %
$ 17,363,954,200
Demographic and Economic Statistics
Year
(a)
(b)
(c)
(d)
Personal
Income (b)
(000s)
Population
(a)
2006
223,054
2007
223,243
2008
$
8,145,040
Per Capita
Personal
Income (c)
$
Unemployment
Rate (d)
36,516
3.5 %
8,543,733
38,271
4.3
223,877
8,749,561
39,082
5.5
2009
227,004
8,589,831
37,840
7.5
2010
227,752
8,763,897
38,480
7.3
2011
226,863
9,195,892
40,535
6.9
2012
228,114
9,550,677
41,868
6.0
2013
230,796
9,747,900
42,236
5.6
2014
232,420
9,816,913
42,236
4.6
2015
234,308
9,896,233
42,236
3.5
District certification.
Personal income for the District was derived by multiplying the Anoka County average by the District’s population
estimate. Personal income below the county level is not available.
U.S. Department of Commerce, Bureau of Economic Analysis for Anoka County population estimates available
only through 2013.
U.S. Department of Labor, Bureau of Labor Statistics.
-118-
Demographic Statistics
Summary of District Population
Year
Population (1)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
223,054
223,243
223,877
227,004
227,752
226,863
228,114
230,796
232,420
234,308
Summary of Enrollment (2)
Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Preschool and
Kindergarten
2,916
2,907
2,795
2,871
2,886
2,884
2,896
3,062
2,980
3,095
Elementary
17,811
17,433
17,272
16,904
16,728
16,551
16,473
16,476
16,510
16,457
Secondary
20,030
20,100
19,857
19,450
19,195
18,623
18,359
17,932
17,790
17,609
Total
40,757
40,440
39,924
39,225
38,809
38,058
37,728
37,470
37,280
37,161
(1)
U.S. Census Bureau, SAIPE for 2010. The 2011 through 2015 populations are estimates based on the 2010
data.
(2)
Total adjusted ADM (average daily membership)
Source:
-119-
Principal Employers
December 31, 2014 and December 31, 2005
December 31, 2014
Percentage
of Total
Number of
Employment
Employees
Medtronic, Inc.
Hennepin County
Anoka-Hennepin ISD No. 11
Mercy Hospital and Medical Centers
Cummins Power Generation
Target (multiple locations)
Anoka County Government Center
ATK Federal Premium Ammunition
Pentair Technical Products
BAE Systems
Parsons Electric Company
BNSF Railway
RMS Company
Anoka Metro Regional Treatment Center
Honeywell Commerical Flight Systems
Mary T., Inc.
Minco Products, Inc.
December 31, 2005
Percentage
of Total
Number of
Employment
Employees
10,640
7,400
7,321
2,200
2,000
1,922
1,625
1,400
1,225
700
650
650
672
630
600
575
575
5.66 %
3.94
3.89
1.17
1.06
1.02
0.86
0.74
0.65
0.37
0.35
0.35
0.36
0.34
0.32
0.31
0.31
3,870
11,000
6,395
3,300
1,450
1,000
1,645
955
1,000
1,450
700
730
–
575
548
–
742
1.99 %
5.67
3.30
1.70
0.75
0.52
0.85
0.49
0.52
0.75
0.36
0.38
–
0.30
0.28
–
0.38
40,785
21.69 %
35,360
18.23 %
Source: County data
-120-
School Building Information
June 30, 2015
OWNED
Square Feet
Enrollment
Elementary
Adams (1966)
Andover (1988)
Crooked Lake (1968)
Dayton (1975)
Eisenhower (1970)
Evergreen Park (1969)
Franklin (1915)
Hamilton (1964)
Hoover (1966)
Jefferson (1962)
Johnsville (1953)
Lincoln (1949)
Madison (1967)
McKinley (1964)
Mississippi (1961)
Monroe (1964)
Morris Bye (1955)
Oxbow Creek (2002)
Champlin-Brooklyn Park Academy (1995)
Ramsey (1974)
Rum River (2001)
Sand Creek (1965)
University Avenue (1961)
Wilson (1964)
73,669
172,634
51,888
62,036
62,262
57,497
60,302
58,731
64,684
71,824
70,335
58,430
65,885
66,563
57,536
77,604
65,357
132,841
128,783
133,682
133,845
63,497
63,783
54,546
557
1,312
476
469
636
471
439
435
529
709
764
451
447
757
440
656
514
1,132
869
1,365
986
784
584
512
Middle
Coon Rapids (1958)
Anoka-Fred Moore Campus (1954)
Anoka-Washington Campus (1955)
Jackson (1967)
Northdale (1975)
Oak View (1996)
Roosevelt (1965)
220,983
213,885
45,292
245,502
206,463
194,932
179,408
1,183
1,188
662
1,924
1,149
1,280
1,136
High
Andover (2002)
Anoka (1971)
Blaine (1972)
Champlin Park (1992)
Coon Rapids (1963)
242,214
325,883
326,833
380,253
435,595
1,572
2,129
2,675
2,508
1,862
(continued)
-121-
School Building Information (continued)
June 30, 2015
OWNED
Square Feet
Other
Educational Service Center (District Offices) (1965)
Sandburg Educational Center (1903)
River Trail Learning Center @ L.O. Jacob (1921)
Compass Programs @ Bell Center (1964)
Riverview ECSE (1934)
Sorteberg ECSE (1960)
Vehicle storage building (1978)
Enrollment
209,026
98,391
63,890
29,841
51,719
54,837
8,500
137
–
88
49
223
223
–
LEASED
Square Feet
Secondary Technical Education Program (2002)
Anoka-Hennepin Regional High School (1960)
Anoka-Hennepin Technical High School (2015)
Bridges (1987)
Pathways (1972)
58,143
30,400
8,362
23,327
12,244
-122-
Enrollment
380
219
91
88
101
Full-Time Equivalents (FTEs): Fiscal 2015
Full-Time
12 Months
SC*
10
11
15
20
30
35
40
41
45
48
50
52
60
62
71
72
73
74
80
88
90
Administrators and supervisors
Special education consultants/supervisors
Miscellaneous letters of agreement
Principals and assistant principals
Teachers
ABE – ECFE teachers
Confidentials
Secretaries and clericals
Paraprofessionals
Technical specs/print shop
Custodians/maintenance specialists
Building supervisors
CN assistants
CN site supervisors
Community school coordinators
Community Education – with benefits (hourly)
Community Education – with benefits (salary)
Community Education – part-time
Miscellaneous support services – no benefits
ESP – CS programmers
ESP – EC screeners
* Salary Code
Note:
All FTEs are based on unit defined 1.0 FTE.
Source: District Labor Relations
-123-
Full-Time
10 Months
Part-Time
Total
90
9
8
78
–
–
15
112
–
11
181
43
–
–
–
24
36
–
–
–
–
–
–
26
17
2,564
21
–
81
873
1
–
–
50
41
7
17
6
–
–
9
4
–
–
–
–
132
19
–
35
177
–
–
–
83
–
3
–
–
71
10
2
–
90
9
34
95
2,696
40
15
228
1,050
12
181
43
133
41
10
41
42
71
10
11
4
607
3,717
532
4,856

Anoka-Hennepin Independent School District No. 11 Anoka

Transcription

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