1700000* LUXEMBURG-CASCO SCHOOL DISTRICT Brown and

Transcription

This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. These securities described herein may not be sold nor may an offer to buy be
accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales
of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 19, 2012
NEW ISSUE
Bank Qualified
Standard & Poor's Rating Requested
See "RATINGS" herein
In the opinion of Quarles & Brady LLP, Bond Counsel, assuming continued compliance with the requirements of the
Internal Revenue Code of 1986, as amended, under existing law interest on the Bonds is excludable from gross income
and is not an item of tax preference for federal income tax purposes. The Bonds are “qualified tax-exempt obligations”.
See "TAX EXEMPTION" herein for a more detailed discussion of some of the federal income tax consequences of owning
the Bonds. The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes.
$1,700,000*
LUXEMBURG-CASCO SCHOOL DISTRICT
Brown and Kewaunee Counties, Wisconsin
General Obligation Refunding Bonds
Dated: November 15, 2012
Due: March 1, 2013-2025
The $1,700,000* General Obligation Refunding Bonds (the "Bonds") will be dated November 15, 2012, and will be in the
denomination of $5,000 each or any multiple thereof, and will mature serially on March 1, 2013 through 2025. Interest shall
be payable commencing on March 1, 2013 and semi-annually thereafter on September 1 and March 1 of each year.
Associated Trust Company, National Association, Green Bay, Wisconsin, will serve as paying agent for the Bonds.
MATURITY SCHEDULE
(March 1)
2013
2014
2015
2016
2017
2018
2019
Amount*
$120,000
115,000
115,000
120,000
120,000
125,000
130,000
Rate
Yield
CUSIP(1)
Base
550670
(March 1)
2020
2021
2022
2023
2024
2025
Amount*
$135,000
135,000
140,000
145,000
150,000
150,000
Rate
Yield
CUSIP(1)
Base
550670
The Bonds are being issued pursuant to Chapter 67 of the Wisconsin Statutes. The Bonds will be general obligations
of the Luxemburg-Casco School District (the “District”) for which its full faith and credit and unlimited taxing powers
are pledged which taxes may under current law be levied without limitation as to rate or amount. The proceeds from
the sale of the Bonds will be used for the purpose of current refunding certain outstanding obligations of the District.
(See “THE FINANCING PLAN” herein.)
The Bonds maturing March 1, 2021 and thereafter are subject to call and prior redemption on March 1, 2020 or any
date thereafter, in whole or in part, from maturities selected by the District and by lot within each maturity at par plus
accrued interest to the date of redemption. All or a portion of the Bonds may be issued as one or more term bonds,
upon election by the successful bidder. (See “REDEMPTION PROVISIONS” herein.)
The Financial Advisor to the District is:
BAIRD
The Bonds will be issued only as fully registered Bonds and will be registered in the name of Cede & Co. as nominee of The
Depository Trust Company, New York, New York ("DTC"). DTC will act as the securities depository of the Bonds.
Individual purchases will be made in book-entry form only in denominations of $5,000 principal amount or any integral
multiple thereof. Purchasers of the Bonds will not receive certificates representing their interest in the Bonds purchased.
(See "BOOK-ENTRY-ONLY SYSTEM" herein)
The District’s Bonds are offered when, as and if issued subject to the approval of legality by Quarles & Brady LLP,
Milwaukee, Wisconsin, Bond Counsel. The anticipated settlement date for this issue is on or about November 15, 2012.
SALE DATE: OCTOBER 29, 2012
SALE TIME: 9:30 A.M. (CT)
*Preliminary, subject to change.
(1)
CUSIP data herein provided by Standard & Poor’s CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. Copyright 2012.
American Bankers Association.
(Brown and Kewaunee Counties, Wisconsin)
SCHOOL BOARD
Timothy Kinnard, President
Chris Worachek, Vice President
David Delain, Clerk
Jodi Falk, Treasurer
Cary Dequaine, Member
Timothy Fameree, Member
Tom Suess, Member
ADMINISTRATION
Dr. Patrick C. Saunders, District Administrator
Janice DeMeuse, Business Manager
Mary Janssen, Student Services Director
Steve Okoniewski, High School Principal
Michael Snowberry, Middle School Principal
Jolene Hussong, Intermediate School Principal
Pete Kline, Primary School Principal
PROFESSIONAL SERVICES
School District Attorney:
Davis & Kuelthau, S.C., Green Bay, Wisconsin
Financial Advisor:
Robert W. Baird & Co., Milwaukee, Wisconsin
Bond Counsel:
Quarles & Brady, LLP, Milwaukee, Wisconsin
Paying Agent:
Associated Trust Company, National Association, Green Bay, Wisconsin
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REGARDING USE OF THIS OFFICIAL STATEMENT
This Official Statement is being distributed in connection with the sale of the Bonds referred to in this Official
Statement and may not be used, in whole or in part, for any other purpose. No dealer, broker, salesman or
other person is authorized to make any representations concerning the Bonds other than those contained in this
Official Statement, and if given or made, such other information or representations may not be relied upon as
statements of the District. This Official Statement does not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful to
make such an offer, solicitation or sale.
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as
the same may be supplemented or amended by the Luxemburg-Casco School District, Wisconsin (the
"District"), from time to time (collectively, the “Official Statement”), may be treated as a final Official Statement
with respect to the Bonds described herein that is deemed final by the District as of the date hereof (or of any
such supplement or amendment).
Unless otherwise indicated, the District is the source of the information contained in this Official Statement.
Certain information in this Official Statement has been obtained by the District or on its behalf from The
Depository Trust Company and other non-District sources that the District believes to be reliable. No
representation or warranty is made, however, as to the accuracy or completeness of such information. Nothing
contained in this Official Statement is a promise of or representation by Robert W. Baird & Co. Incorporated (the
"Financial Advisor"). The Financial Advisor has provided the following sentence of inclusion in this Official
Statement. The Financial Advisor has reviewed the information in this Official Statement in accordance with,
and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of
such information. The information and opinions expressed in this Official Statement are subject to change
without notice. Neither the delivery of this Official Statement nor any sale made under this Official Statement
shall, under any circumstances, create any implication that there has been no change in the financial condition
or operations of the District or other information in this Official Statement, since the date of this Official
Statement.
This Official Statement contains statements that are “forward-looking statements” as that term is defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. When used in this Official Statement, the words “estimate,” “intend,” “project” or
“projection,” “expect” and similar expressions are intended to identify forward-looking statements. Forwardlooking statements are subject to risks and uncertainties, some of which are discussed herein, that could cause
actual results to differ materially from those contemplated in such forward-looking statements. Investors and
prospective investors are cautioned not to place undue reliance on forward-looking statements, which speak
only as of the date of this Official Statement.
This Official Statement should be considered in its entirety. No one factor should be considered more or less
important than any other by reason of its position in this Official Statement. Where statutes, ordinances, reports
or other documents are referred to in this Official Statement, reference should be made to those documents for
more complete information regarding their subject matter.
The Bonds will not be registered under the Securities Act of 1933, as amended, or the securities laws of any
state of the United States, and will not be listed on any stock or other securities exchange. Neither the
Securities and Exchange Commission nor any other federal, state, municipal or other governmental entity shall
have passed upon the accuracy or adequacy of this Official Statement.
IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OR MAY NOT
OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICES OF
THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET.
SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME WITHOUT NOTICE. THE
PRICES AND OTHER TERMS RESPECTING THE OFFERING AND SALE OF THE BONDS MAY BE
CHANGED FROM TIME TO TIME BY THE UNDERWRITER AFTER THE BONDS ARE RELEASED FOR
SALE AND THE BONDS MAY BE OFFERED AND SOLD AT PRICES OTHER THAN THE INITIAL
OFFERING PRICES, INCLUDING SALES TO DEALERS WHO MAY SELL THE BONDS INTO INVESTMENT
ACCOUNTS.
3
TABLE OF CONTENTS
Page
SCHOOL BOARD ............................................................................................................................................... 2 ADMINISTRATION .............................................................................................................................................. 2 PROFESSIONAL SERVICES ............................................................................................................................. 2 REGARDING USE OF THIS OFFICIAL STATEMENT ....................................................................................... 3 SUMMARY .......................................................................................................................................................... 5 INTRODUCTORY STATEMENT......................................................................................................................... 6 THE FINANCING PLAN ...................................................................................................................................... 6 REDEMPTION PROVISIONS ............................................................................................................................. 6 ESTIMATED SOURCES AND USES ................................................................................................................. 6 CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND LIMITATIONS CONCERNING THE DISTRICT'S POWER TO INCUR INDEBTEDNESS ........................................................................................ 7 THE RESOLUTION ............................................................................................................................................. 8 THE DISTRICT .................................................................................................................................................... 8 GENERAL INFORMATION ............................................................................................................................... 11 DEMOGRAPHIC AND ECONOMIC INFORMATION ....................................................................................... 12 TAX LEVIES, RATES AND COLLECTIONS..................................................................................................... 13 EQUALIZED VALUATIONS .............................................................................................................................. 15 INDEBTEDNESS OF THE DISTRICT .............................................................................................................. 15 FINANCIAL INFORMATION ............................................................................................................................. 17 GENERAL FUND SUMMARY FOR YEARS ENDED JUNE 30........................................................................ 18 UNDERWRITING .............................................................................................................................................. 19 RATINGS........................................................................................................................................................... 19 REVENUE LIMITS ON WISCONSIN SCHOOL DISTRICTS............................................................................ 19 TAX EXEMPTION ............................................................................................................................................. 20 DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS ...................................................................... 20 CONTINUING DISCLOSURE ........................................................................................................................... 20 BOOK-ENTRY-ONLY SYSTEM ........................................................................................................................ 21 LITIGATION....................................................................................................................................................... 22 LEGAL MATTERS ............................................................................................................................................. 23 FINANCIAL ADVISOR ...................................................................................................................................... 23 MISCELLANEOUS ............................................................................................................................................ 23 AUTHORIZATION ............................................................................................................................................. 23 Appendix A:
Appendix B:
Appendix C:
Appendix D:
Basic Financial Statements and Related Notes for the Year Ended June 30, 2011
Form of Continuing Disclosure Certificate
Form of Legal Opinion
Official Notice of Sale and Bid Form
4
SUMMARY
District:
Luxemburg-Casco School District
Brown and Kewaunee Counties, Wisconsin.
Issue:
$1,700,000* General Obligation Refunding Bonds.
Dated Date:
November 15, 2012.
Interest Due:
Commencing March 1, 2013 and on each September 1 and March 1
thereafter. Interest on the Bonds will be computed on the basis of a 30-day
month and a 360-day year.
Principal Due:
March 1, 2013 - 2025.
Redemption Provisions:
The Bonds maturing on and after March 1, 2021 shall be subject to call and
prior payment on March 1, 2020 or on any date thereafter at par plus
accrued interest. The amounts and maturities of the Bonds to be redeemed
shall be selected by the District. If less than the entire principal amount of
any maturity is to be redeemed, the Bonds of that maturity which are to be
redeemed shall be selected by lot. Notice of such call shall be given by
sending a notice thereof by registered or certified mail, facsimile or
electronic transmission or overnight express delivery not less than thirty (30)
days nor more than sixty (60) days prior to the date fixed for redemption to
the registered owner of each Bond to be redeemed at the address shown on
the registration books. All or a portion of the Bonds may be issued as one
or more term bonds, upon election by the successful bidder. (See
“REDEMPTION PROVISIONS” herein.)
Security:
The full faith, credit and resources of the District are pledged to the payment
of the principal of and the interest on the Bonds as the same become due
and, for said purposes, there are levied without limitation on all the taxable
property in the District, direct, annual irrepealable taxes in each year and in
such amounts which will be sufficient to meet such principal and interest
payments when due. Under current law, such taxes may be levied without
limitation as to rate or amount.
Purpose:
The proceeds from the sale of the Bonds will be used for the purpose of
current refunding certain outstanding obligations of the District (See “THE
FINANCING PLAN” herein.)
Tax Status:
Interest on the Bonds is excludable from gross income for federal income
tax purposes. (See “TAX EXEMPTION” herein.)
Bank Qualification:
The Bonds are "qualified tax-exempt obligations".
Credit Ratings:
The District has requested a rating on this issue from Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. (See
“RATINGS” herein.)
Bond Years:
11,275.56 years.
Average Life:
6.633 years.
Record Date:
The 15th day of the calendar month next preceding each interest payment
date.
Information set forth on this page is qualified by the entire Official Statement. A full review of the entire Official statement
should be made by potential investors.
5
INTRODUCTORY STATEMENT
This Official Statement presents certain information relating to the Luxemburg-Casco School District, Wisconsin
(the "District" and the "State" respectively) in connection with the sale of the District's $1,700,000* General
Obligation Refunding Bonds (the "Bonds"). The Bonds are issued pursuant to the Constitution and laws of the
State and the resolution (the "Resolution") adopted by the School Board (the "Board") and other proceedings
and determinations related thereto.
All summaries of statutes, documents and the Resolution contained in this Official Statement are subject to all
the provisions of, and are qualified in their entirety by reference to such statutes, documents and the Resolution,
and references herein to the Bonds are qualified in their entirety by reference to the form thereof included in the
Resolution. Copies of the Resolution may be obtained from the Financial Advisor upon request.
THE FINANCING PLAN
The Bonds will be issued for the purpose of current refunding a portion of the following issue (the “Prior Issue”):
Issue
Note Anticipation Note
Bank Loan
Dated: 10/1/2012
Original
Amount
Call Price
$1,700,000
100%
Call Date
Maturities
to be
Refunded
Amount of
Principal
Refunded
Balance after
Refunding
(11/16/2012)
Any Date
2013
$1,700,000
-0-
Proceeds of the Bonds will be deposited in a segregated account and used to current refund the Prior Issue on
or about November 16, 2012.
REDEMPTION PROVISIONS
Optional Redemption
The Bonds maturing March 1, 2021 and thereafter are subject to call and prior redemption on March 1, 2020 or
any date thereafter, in whole or in part, from maturities selected by the District, and by lot within each maturity at
par plus accrued interest to the date of redemption.
Mandatory Redemption
All or a portion of the Bonds may be issued as one or more term bonds, upon election by the successful bidder
as provided in the official notice of sale.
Such term bonds shall be subject to mandatory sinking fund redemption. Such term bonds shall have a stated
maturity or maturities of March 1, in such years as determined by the successful bidder. The term bonds shall
be subject to mandatory sinking fund redemption and final payment(s) at maturity of 100% of the principal
amount thereof, plus accrued interest to the redemption date or dates and in amounts consistent with the
maturity schedule on the cover of this Official Statement.
ESTIMATED SOURCES AND USES*
Sources of Funds
Par Amount of Bonds
Reoffering Premium
Total Sources:
$1,700,000
51,722
$1,751,722
Uses of Funds
Amount Needed to Payoff Note Anticipation Notes
Costs of Issuance (Including Underwriter’s Discount) and Rounding
Total Uses:
$1,701,870
49,852
$1,751,722
6
CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND LIMITATIONS
CONCERNING THE DISTRICT'S POWER TO INCUR INDEBTEDNESS
The Constitution and laws of the State limit the power of the District (and other municipalities of the State) to
issue obligations and to contract indebtedness. Such constitutional and legislative limitations include the
following, in summary form and as generally applicable to the District.
Purpose
The District may not borrow money or issue notes or bonds therefore for any purpose except those specified by
statute, which include among others the purposes for which the Bonds are being issued.
Bond or Note Anticipation Notes
In anticipation of issuing general obligation bonds or notes, the District is authorized to borrow money using
bond or note anticipation notes. The bond or note anticipation notes shall in no event be general obligations of
the District, and do not constitute an indebtedness of the District, nor a charge against its general credit or
taxing power. The bond or note anticipation notes are payable only from (a) proceeds of the bond or note
anticipation notes set aside for payment of interest on the bond or note anticipation notes as they become due,
and, (b) proceeds to be derived from the issuance and sale of general obligation bonds or notes which proceeds
are pledged for the payment of the principal of and interest on the bond or note anticipation notes. The
maximum term of any bond or note anticipation notes (including any refunding) is five years.
General Obligation Bonds
The principal amount of every sum borrowed by the District and secured by an issue of bonds may be payable
at one time in a single payment or at several times in two or more installments; however, no installment may be
made payable later than the termination of twenty years immediately following the date of the bonds. The Board
of the District is required to levy a direct, annual, irrepealable tax sufficient in amount to pay the interest on such
bonds as it falls due and also to pay and discharge the principal thereof at maturity. Bonds issued by the District
to refinance or refund outstanding notes or bonds issued by the District may be payable no later than twenty
years following the original date of such notes or bonds.
Refunding Bonds
In addition to being authorized to issue bonds, the District is authorized to borrow money using refunding bonds
for refunding existing debt. To evidence such indebtedness, the District must issue to the lender its refunding
bonds (with interest) payable within a period not exceeding twenty years following the initial date of the debt to
be refunded. Such refunding bonds constitute a general obligation of the District. Refunding bonds are not
subject to referendum.
Promissory Notes
In addition to being authorized to issue bonds, the District is authorized to borrow money using notes for any
public purpose. To evidence such indebtedness, the District must issue to the lender its promissory notes (with
interest) payable within a period not exceeding ten years following the date of said notes. Such notes constitute
a general obligation of the District. Notes may be issued to refinance or refund outstanding notes. However,
such notes may be payable not later than twenty years following the original date of such outstanding notes.
Temporary Borrowing
The Board of the District may, on its own motion, borrow money in such sums as may be needed to meet the
immediate expenses of maintaining the schools in the District during the then current school year. No such loan
or loans shall be made to extend beyond November 1 of the following year nor in any amount exceeding onehalf of the estimated receipts for the operation and maintenance of the District for the current school year in
which the loan is made.
7
Debt Limit
The District has the power to contract indebtedness for purposes specified by statute so long as the principal
amount thereof does not exceed ten percent of the equalized value of taxable property within the District. For
information with respect to the District's percent of legal debt incurred, see the caption "Debt Limit," herein.
THE RESOLUTION
The following are summaries of certain provisions of the Resolution adopted by the District pursuant to the
procedures prescribed by Wisconsin Statutes. Reference is made to the Resolution for a complete recital of
their terms.
By way of a Resolution to be adopted on October 29, 2012 (the "Resolution") the Board will accept the bid (or
reject all bids) of the Underwriter for the purchase of the Bonds, in accordance with bid specifications, provide
the details and form of the Bonds, and set out certain covenants with respect thereto. The Resolution pledges
the full faith, credit and resources of the District to payments of the principal of and interest on the Bonds.
Pursuant to the Resolution, the amount of direct, annual, irrepealable taxes levied for collection in the years
2013 through 2025 which will be sufficient to meet the principal and interest payments on the Bonds when due
will be specified. The Resolution establishes separate and distinct from all other funds of the District a debt
service fund with respect to payment of principal of and interest on the Bonds.
THE DISTRICT
The administration of the District is exercised by a Board. The Board consists of seven members who are
elected for staggered three-year terms of office. The Board elects a President, Vice President, Clerk and
Treasurer among its members for one-year terms. The Board is empowered to employ a District Administrator
to conduct the affairs and programs of the District.
Common school districts hold an annual meeting prior to adopting the budget for the ensuing year. The Board
shall present at the annual meeting a full, itemized written report. The report shall state all receipts and
expenditures of the District since the last annual meeting, the current cash balance of the District, the amount of
the deficit and the bills payable of the District, the amount necessary to be raised by taxation for the support of
the schools of the District for the ensuing year and the amount required to pay the principal and interest of any
debt due during the ensuing year. The report shall also include the budget summary. The Board has the power
and duty, among other things, to make rules for the organization, gradation, and government of the schools of
the District, enter into agreements with other governmental units, tax for operation and maintenance, engage
employees including a District Administrator and purchase school equipment.
The Board
Name
Timothy Kinnard, President
Chris Worachek, Vice President
David Delain, Clerk
Jodi Falk, Treasurer
Cary Dequaine, Member
Timothy Fameree, Member
Tom Suess, Member
Expiration
of Term
April, 2014
April, 2014
April, 2013
April, 2013
April, 2015
April, 2013
April, 2015
Source: The District.
8
Administration
Name
Dr. Patrick C. Saunders
Janice DeMeuse
Mary Janssen
Steve Okoniewski
Michael Snowberry
Jolene Hussong
Pete Kline
Title
District Administrator
Business Manager
Student Services Director
High School Principal
Middle School Principal
Intermediate School Principal
Primary School Principal
Years of
Service
13
10
13
23
10
9
17
District Facilities
Facility
Luxemburg-Casco High School
Luxemburg-Casco Middle School
Luxemburg-Casco Intermediate School
Luxemburg-Casco Primary School
Luxemburg-Casco Bus Garage
Constructed/Additions
1957/1967, 1977, 1991, 1997
1936/1952, 1963, 1971, 1991
1977
2001
1998
School Enrollments
Year
2007-08
Total
1,938
2008-09
1,933
2009-10
1,913
2010-11
1,898
2011-12
1,930
2012-13
1,930
2013-14*
1,944
2014-15*
1,969
2015-16*
2,007
2016-17*
2,012
*The projections are based on co-hort survival ratio based on historical counts from 1998-99 through 2011-12.
9
Employment Relations
Department
Teachers
Administrators
Instructional Aides
Secretarial
Custodians
Food Service
Transportation
Nurses
Tech Support Specialists
Support Aides
TOTAL
Number of
Employees (FTE)
149.25
7.00
20.00
8.00
18.50
11.20
7.50
2.10
2.00
18.10
243.65
The District does not currently have any labor contracts.
All eligible District personnel are covered by the Municipal Employment Relations Act ("MERA") of the
Wisconsin Statutes. Pursuant to that law, employees have rights to organize and, after significant changes
were made to the law in 2011, very limited rights to collectively bargain with municipal employers. MERA was
amended by 2011 Wisconsin Act 10 (the "Act") and by 2011 Wisconsin Act 32.
Certain legal challenges were brought with respect to the Act. On May 26, 2011, the Dane County Circuit Court
(the "Circuit Court") issued a decision which voided the legislative action taken with respect to the Act due to
violations of the State's Open Meetings Law. However, on June 14, 2011, the Supreme Court of Wisconsin
overturned the Circuit Court's decision by vacating and declaring all orders and judgments of the Circuit Court
with respect to the Act to be void. As a result, the Act took effect on June 29, 2011, the day after it was
published in accordance with State statutes. On September 14, 2012, the Circuit Court issued a decision which
declared that certain portions of the Act violate State Constitutional rights to freedom of speech and association
and equal protection, including portions of the Act that prohibit collectively bargaining with municipal employees
with respect to any factor or condition of employment except total base wages. On September 18, 2012, the
State Attorney General filed an appeal to the Circuit Court's decision and requested a stay on the enforcement
of the decision until such an appeal is decided. The outcome of these legal proceedings cannot be predicted at
this time.
As a result of the 2011 amendments to MERA, the District is prohibited from bargaining collectively with
municipal employees with respect to any factor or condition of employment except total base wages. Even then,
the District is limited to increasing the base wages only by any increase in the previous year's consumer price
index (unless the District were to seek approval for a higher increase through a referendum). Ultimately, the
District may unilaterally implement the wages for a collective bargaining unit. Under the changes to MERA,
impasse resolution procedures were removed from the law for municipal employees of the type employed by the
District, including binding interest arbitration. Strikes by any municipal employee or labor organization are
expressly prohibited. As a practical matter, it is anticipated that strikes will be rare. Furthermore, if strikes do
occur, they may be enjoined by the courts. Additionally, because the only legal subject of bargaining is the base
wage rates, all bargaining over items such as just cause, benefits, and terms of conditions of employment are
prohibited and cannot be included in a collective bargaining agreement.
Due to the changes described above, the Board is free to unilaterally determine and promulgate policies,
benefits and other terms and conditions of employment. Accordingly, on May 21, 2012, the Board approved an
Employee Handbook, which became effective May 21, 2012 for all employee groups. The Employee Handbook
sets forth policies, procedures and benefits for employees of the nature that were previously set forth in labor
contracts. The Employee Handbook's terms are subject to change at the sole discretion of the District and are
not subject to grievance or arbitration by the unions. However, individual employees are allowed to file a
grievance if they are disciplined or terminated. However, under the changes to MERA, the Board, rather than
10
an arbitrator, is the final decision-maker regarding any grievance, though the grievance must be heard by an
impartial hearing officer before reaching the Board.
Pension Plan
All employees in the District are covered under the Wisconsin Retirement System established under Chapter 40
of the Wisconsin Statutes. The total retirement plan contributions for the year ended June 30, 2011 were
$951,683 and $897,749 for the year ended June 30, 2010. The amounts of such contributions are determined
by the Wisconsin Retirement Fund and are in accordance with the actuarially determined requirement.
Pursuant to the amendments of MERA discussed above District employees are now required to contribute half
of such contributions.
Other Post Employment Benefits
The District provides "other post-employment benefits" ("OPEB") (i.e., post-employment benefits, other than
pension benefits, owed to its employees and former employees) through a single-employer defined benefit plan
to employees who have terminated their employment with the District and have satisfied specified eligibility
standards. Membership of the plan consisted of 22 retirees receiving benefits and 155 active plan members as
of July 1, 2011, the date of the latest actuarial valuation. OPEB calculations are required to be updated every
three years and prepared in accordance with Statement No. 45 of the Governmental Accounting Standards
Board (“GASB 45”) regarding retiree health and life insurance benefits, and related standards. An OPEB study
for the District was last completed as of July 1, 2011.
The information summarized in the remainder of this section, below, is taken from the District's audited financial
statements for the year ended June 30, 2011 ("Fiscal Year 2011").
The District is required to expense the estimated yearly cost of providing post-retirement benefits representing a
level of funding that, if paid on an ongoing basis, is project to cover costs and amortize unfunded actuarial
liabilities over an a given period not to exceed 30 years. Such annual accrual expense is referred to as the
"annual required contribution." As shown in the District's Financial Statements for Fiscal Year 2011, the
District's annual required contribution was $1,283,515. For Fiscal Year 2011, contributions to the plan totaled
$404,502, which was 32.0% of the annual required contribution. The District's funding practice has been to fully
fund the yearly amount of benefit premiums on a "pay-as-you-go-basis."
The plan's ratio of actuarial value of assets to actuarial accrued liability for benefits (the "Funded Ratio") as of
the most recent actuarial valuation date, July 1, 2011, was 33.0%. As of June 30, 2011, the actuarial accrued
liability was $3,782,972, and the actuarial value of assets was $1,240,940, resulting in an unfunded actuarial
accrued liability of $2,542,032.
For more information, see Note 7 in "Appendix A - Basic Financial Statements and Related Notes for the Year
Ended June 30, 2011" attached hereto.
GENERAL INFORMATION
Location
The District, composed of seven municipalities in Kewaunee County and 2 towns in Brown County, is located on
the southern end of the Door County peninsula, approximately 15 miles east of the City of Green Bay. The area
is easily accessible via State Highway 141 out of Milwaukee, and Highway 57 and 54 out of Green Bay. The
area is mainly agricultural/residential with many residents commuting to Green Bay for additional employment
opportunities.
Education
The District offers a comprehensive educational program for students in the kindergarten through the twelfth
grades. Through the use of one high school, one middle school and one intermediate school, students
participate in excellent educational programs. The District had a 2010 census population of 11,083 and
employs 243.65 (FTE) people.
11
Post-Secondary Education
Students wishing to pursue a post-secondary education can attend classes at one of three Northeast Wisconsin
Technical College two year campuses, or the University of Wisconsin-Green Bay, which offers four year degree
programs. St. Norbert College, a private institution, is located just 25 miles away in DePere.
DEMOGRAPHIC AND ECONOMIC INFORMATION
Population
Brown
County
249,192
248,007
245,426
245,168
244,764
Estimate, 2011
Census, 2010
Estimate, 2009
Estimate, 2008
Estimate, 2007
Kewaunee
County
20,594
20,574
21,488
21,358
21,198
Village of
Luxemburg
2,542
2,515
2,386
2,354
2,292
Town of
Casco
1,167
1,165
1,262
1,257
1,251
Source: Wisconsin Department of Administration, Demographic Services Center.
Per Return Adjusted Gross Income
State of
Wisconsin
$46,958
45,372
47,046
48,985
48,107
2010
2009
2008
2007
2006
Brown
County
$52,449
49,849
51,821
50,773
50,658
Kewaunee
County
$41,963
40,569
43,088
41,926
40,743
Village of
Luxemburg
$46,223
43,677
46,722
47,899
45,711
Source: Wisconsin Department of Revenue, Division of Research and Policy.
Unemployment Rate
State of
Wisconsin
Brown
County
Kewaunee
County
August, 2012
August, 2011
7.1%
7.3
6.5%
6.7
5.9%
6.5
Average, 2011
Average, 2010
Average, 2009
Average, 2008
Average, 2007
7.5%
8.3
8.5
4.8
4.8
6.8%
7.4
7.7
4.5
4.5
7.0%
8.0
7.8
4.4
4.5
Source: Wisconsin Department of Workforce Development.
12
Town of
Casco
$42,894
40,556
44,741
42,370
39,179
Largest Employers
The largest employers in the District are listed below:
Name
NEW Plastics Corp.
D&S Machine Services
Trega Foods Ltd.
Casco American Legion
Bank of Luxemburg
Northbrook Country Club
Dairy Dreams LLC
Dorner Inc.
Tielens Construction Inc.
Type of Business
Education
Plastics manufacturer
Industrial & manufacturing
Cheese foods manufacturer
Civil & social organization
Financial institution
Country club, golf club
Dairy farming
Construction
Construction
Number of Employees
233.65 (FTE)
100-249
93
85
62
56-112
50
39
36
35
Source: 2012 Wisconsin Manufacturer and Business Services Directories, Wisconsin Department of Workforce Development
WORKNET website and the District.
Largest Taxpayers
Listed below are the ten largest taxpayers in the District.
Name
Bank of Luxemburg
D&S Machine Services
Rio Creek Feed Mill
Glen Rueckl
NEW Plastics Corp.
Richard Thompson
St. Vincent Hospital
Northbrook Country Club
Stodola Brothers
Packerland Whey Products, Inc.
Type of Business
Financial institution
Industrial & manufacturing
Agricultural
Home building & apartments
Plastics manufacturer
Apartments
Clinic
Country club, golf club
Grocery store
Manufacturer of liquid supplements
TOTAL
2011
Assessed Valuation
$4,819,800
2,950,600
1,935,700
1,773,200
1,672,700
1,273,200
1,165,900
1,131,800
965,800
890,000
$18,578,700
2011
Equalized Valuation
$4,600,103
2,816,105
1,847,467
1,692,374
1,596,455
1,215,165
1,112,756
1,080,210
921,777
849,432
$17,731,844
The above taxpayers represent 2.02% of the District's 2011 Equalized Value (TID IN) ($876,481,678).
The District's 2012 Equalized Value (TID IN) is $872,570,426.
Source: Clerk, Village of Luxemburg.
TAX LEVIES, RATES AND COLLECTIONS
Personal property taxes, special assessments, special charges and special taxes must be paid to the town, city
or village treasurer in full by January 31. Real property taxes may be paid in full by January 31 or in two equal
installments payable by January 31 and July 31. Municipalities also have the option of adopting payment plans
which allow taxpayers to pay their real property taxes and special assessments in three or more installments,
provided that the first installment is paid by January 31, one-half of the taxes are paid by April 30 and the
remainder is paid by July 31. Amounts paid on or before January 31 are paid to the town, city or village
treasurer. Amounts paid after January 31 are paid to the county treasurer unless the municipality has
authorized payment in three or more installments in which case payment is made to the town, city or village
treasurer. Any amounts paid after July 31 are paid to the county treasurer. For municipalities which have not
adopted an installment payment plan, the town, city or village treasurer settles with other taxing jurisdictions for
collections through the preceding month on January 15 and February 20. For municipalities which have
adopted an installment payment plan, the town, city or village treasurer settles with other taxing jurisdictions for
collections through the preceding month on January 15, February 15 and the 15th day of each month following a
13
month in which an installment payment is due. On or before August 20, the county treasurer must settle in full
with the underlying taxing districts for all real property taxes and special taxes. The County Board may
authorize its County Treasurer to also settle in full with the underlying taxing districts for all special assessments
and special charges. The county may then recover any tax delinquencies by enforcing the lien on the property
and retain any penalties or interest on the delinquencies for which it has settled. Since, in practice, all
delinquent real estate taxes are withheld from the county's share of taxes, the District receives 100 percent of
the real estate taxes it levies.
Set forth below are the taxes levied and the tax rate per $1,000 equalized value on all taxable property within
the District.
Levy Year
2011
2010
2009
2008
2007
Collection Year
2012
2011
2010
2009
2008
School District
Tax Rate*
$8.57
8.35
7.64
6.10
6.91
School District
Levy*
$7,338,912
7,008,369
6,519,359
5,142,487
5,681,406
Uncollected Taxes
as of August 20 of
Each Year
-0-0-0-0-0-
Percent of Levy
Collected
100.00%
100.00
100.00
100.00
100.00
*The District's tax rate and levy figure for 2012/13 is not yet available.
Source: Wisconsin Department of Public Instruction.
2011-2012 Proportionate Amounts of Local Tax Revenue
Per Municipality Based on 2011 Equalized Valuation
2011 Equalized
Valuation (TID OUT)
Municipality
Village of Luxemburg(1)
Town of Green Bay(2)
Town of Humboldt(2)
Town of Casco(1)
Town of Lincoln(1)
Town of Luxemburg(1)
Town of Montpelier(1)
Town of Red River(1)
Village of Casco(1)
TOTAL
$140,849,700
206,037,215
55,948,361
58,905,042
37,465,734
123,105,000
66,110,826
138,708,800
29,081,400
$856,212,078
Percent of
Levy
Amount of
Levy*
16.450329%
24.063806
6.534405
6.879726
4.375754
14.377863
7.721314
16.200285
3.396518
100.000000%
$1,207,275
1,766,022
479,554
504,897
321,133
1,055,179
566,660
1,188,925
249,267
$7,338,912
*The District's levy for collection year 2013 is not yet available.
(1)
Kewaunee County
(2)
Brown County
Source: Wisconsin Department of Revenue.
Tax Increment District
The Village of Luxemburg has a Tax Incremental District created under Section 66.1105 of the Wisconsin
Statutes. TID valuations totaling $22,086,300 has been excluded from the District's tax base for 2012.
Village of
Luxemburg
TID #1
TOTAL
TID
Creation
Date
1995
Base
Value
$4,720,200
14
2012
Value
$26,806,500
Increment
$22,086,300
$22,086,300
EQUALIZED VALUATIONS
The State of Wisconsin, Department of Revenue, Supervisor of Assessments Office determines all equalized
valuations of property in the State of Wisconsin. Equalized valuations are the State's estimate of full market
value.
Set forth in the table below are equalized valuations of property located within the District for the years 2008
through 2012. The District's valuation (TID-IN) has increased by 1.07 percent since 2008 with an average
annual increase of 0.27 percent.
Equalized Valuation
(TID-IN)
$872,570,426
876,481,678
858,607,023
873,575,774
863,320,433
Year
2012
2011
2010
2009
2008
Equalized Valuation
(TID-OUT)
$850,484,126
856,212,078
838,923,323
853,652,474
843,705,333
INDEBTEDNESS OF THE DISTRICT
Direct Indebtedness
Set forth below is the direct indebtedness of the District, including principal and interest payments due on
existing debt as well as debt service on the new issue. Interest on the Bonds has been estimated using an
average rate of 2.78 percent. Bond years are 11,275.56 years, and the average life is 6.633 years.
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Outstanding Bonds and Notes
Principal
Interest
$40,000
$95,357
100,000
96,975
100,000
94,475
105,000
91,400
110,000
88,175
110,000
84,875
115,000
81,213
120,000
77,100
125,000
72,500
130,000
67,400
135,000
62,100
140,000
56,600
145,000
50,900
150,000
45,000
160,000
38,800
165,000
32,300
170,000
25,600
180,000
18,600
185,000
11,300
190,000
3,800
2,675,000
1,194,469
$120,000
115,000
115,000
120,000
120,000
125,000
130,000
135,000
135,000
140,000
145,000
150,000
150,000
------1,700,000
$35,045
41,768
39,123
36,120
32,760
29,330
25,760
22,050
18,270
14,420
10,430
6,300
2,100
------313,475
Total Debt
Service
Requirements*
$135,357
352,020
351,243
350,523
354,295
347,635
350,543
352,860
354,550
350,670
351,520
352,030
352,200
347,100
198,800
197,300
195,600
198,600
196,300
193,800
5,882,945
0
$1,700,000
0
$313,475
(135,357)
$5,747,588
The Bonds*
Principal
Interest
Less 2012
Sinking Funds
Total
(40,000)
$2,635,000
(95,357)
$1,099,113
15
Other Financings
The District has borrowed for short-term cash flow purposes as follows:
Amount
$2,550,000*
$3,445,000*
$2,255,000*
Dated
10/1/2012
10/7/2011
10/11/2010
Maturity
8/30/2013
8/31/2012
8/30/2011
*Line of Credit: The District does not draw on the full amount of the line of credit.
Future Financing
The District does not anticipate issuing any additional general obligation debt within the next twelve months.
Default Record
The District has never defaulted on any prior debt repayment obligations.
Overlapping and Underlying Indebtedness
Set forth below is information relating to the outstanding overlapping and underlying indebtedness of the District.
Entity
Northeast Wisconsin Technical College
Kewaunee County
Brown County
Village of Luxemburg
Village of Casco
Total Towns
Total Sanitary Districts
Total
Amount of Debt
Net of 2012
Principal Payments
$36,195,000
13,290,000
131,460,000
2,582,886
766,773
581,296
56,796,029
$241,671,984
Percent
Chargeable to
District*
2.38%
41.78
1.44
100.00
100.00
varies
varies
Outstanding Debt
Chargeable to
District
$816,441
5,552,562
1,893,024
2,582,886
766,773
437,734
914,416
$13,008,836
*Percentages based on 2011 equalized values.
Source: Wisconsin Department of Revenue. Information provided by each municipal entity through publicly available
disclosure documents available on EMMA.msrb.org and the Wisconsin Department of Public Instruction and direct inquiries.
Statistical Summary*
The table below reflects direct, overlapping and underlying bonded indebtedness net of all 2012 principal
payments.
2012 Equalized Valuation
$872,570,426
Direct Bonded Indebtedness Including the Bonds*
$4,335,000
Direct, Overlapping and Underlying Bonded Indebtedness Including the Bonds*
$17,343,836
Direct Bonded Indebtedness as a Percentage of Equalized Valuation*
0.50%
Direct, Overlapping and Underlying Bonded Indebtedness as a Percentage
of Equalized Valuation*
1.99%
Population of District (2010 Census)**
11,083
Direct Bonded Indebtedness Per Capita*
$391.14
Direct, Overlapping and Underlying Bonded Indebtedness Per Capita*
**Source: U.S. Census Bureau.
16
$1,564.90
Debt Limit*
As described under the caption "CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND
LIMITATIONS CONCERNING THE DISTRICT'S POWER TO INCUR INDEBTEDNESS--Debt Limit," the total
indebtedness of the District may not exceed ten percent of the equalized value of property in the District. The
table below reflects direct bonded indebtedness net of all 2012 principal payments as a percentage of the
applicable debt limit.
Equalized Valuation (2012) as certified by Wisconsin Department of Revenue
Legal Debt Percentage Allowed
$872,570,426
10.00%
Legal Debt Limit
$87,257,043
General Obligation Debt Outstanding*
$4,335,000
Unused Margin of Indebtedness Including the Bonds*
Percent of Legal Debt Incurred*
$82,922,043
4.97%
Percentage of Legal Debt Available*
95.03%
FINANCIAL INFORMATION
The financial operations of the District are conducted primarily through a series of state mandated funds. All
revenues except those attributable to the building funds and other funds authorized by State law are accounted
for in the general fund, and any lawful expenditure of the District must be made from the appropriate fund and
recorded therein.
As in other areas of the United States, the financing of public education in the State is subject to changing
legislation, variations in public opinion, examination of financing methods through litigation and other matters.
For these reasons the District cannot anticipate with certainty all of the factors which may influence the financing
of its future activities.
Budgeting Process
The District is required by State law to annually formulate a budget and to hold an annual meeting thereon prior
to the determination of the amounts to be financed in whole or in part by general property taxes, funds on hand
or estimated revenues from other sources. Such budget must list existing indebtedness of the District and all
anticipated revenue from all sources during the ensuing year and must also list all proposed appropriations for
each department, activity and reserve account of the District during the ensuing year. The budget must show
actual revenues and expenditures for the preceding year, actual revenues and expenditures for not less than the
first six months of the current year and estimated revenues and expenditures for the balance of the current year.
As part of the budgeting process, budget requests are submitted during the course of the fiscal year by the
teachers and departmental administrators of each school. All requests for program additions or modifications
are reviewed by the administrative team and by a committee of the Board. The Board reviews final
recommendations of the administrative team and committee and adjusts the budget as necessary. The
proposed budget is formally adopted by the Board after the annual meeting is held.
17
GENERAL FUND SUMMARY
FOR YEARS ENDED JUNE 30
2012-13
BUDGET
2011-12
ESTIMATE
2010-11
ACTUAL(1)
2009-10
ACTUAL
2008-09
ACTUAL
$7,029,105
10,577,842
186,435
281,547
387
63,215
18,138,531
$7,351,144
10,375,170
175,000
200,000
386
10,500
18,112,200
$6,843,138
12,412,089
1,252,916
301,082
49,432
19,720
20,878,377
$6,355,177
11,265,581
810,813
190,866
-17,000
18,639,437
$5,143,393
11,378,527
1,610,150
161,850
-38,776
18,332,696
9,280,405
6,658,976
2,295,461
18,234,842
9,508,186
6,758,861
1,845,153
18,112,200
12,245,646
7,395,338
697,283
20,338,267
9,755,206
6,378,311
350,521
16,484,038
9,671,163
6,845,538
275,085
16,791,786
0
540,110
2,155,399
1,540,910
Other financing sources (uses)
Sale of non-capital assets
Operating transfers in
Operating transfers out(3)
Net other financing sources (uses)
-----
3,447
--3,447
1,360
-(1,827,864)
(1,826,504)
--(1,591,676)
(1,591,676)
Revenues and other sources over
(under) expenditures and other uses
--
543,557
328,895
3,690,123
3,146,566
2,817,671
2,868,437
$3,690,123
$3,690,123
$3,146,566
$2,817,671
Revenues
Local Sources
State Sources
Federal Sources
Interdistrict Sources
Intermediate Sources
Other
Total revenues
Expenditures
Instruction
Support Service
Non-program(2)
Total Expenditures
Excess of revenues over
(under) expenditures
Cumulative effect adjustment for
change in accounting for deferred taxes
Fund balances - beginning of year
Fund balances - end of year
($96,311)
(50,766)
(1)
The actual 2011 figures reflect the District's adoption of Statement No. 54 of the Governmental Accounting Standards
Board, which include what was previously separately identified as the special education fund within the general fund. The
2012 Estimated and 2013 budget figures do not reflect Statement No. 54 of the Governmental Accounting Standards Board.
(2)
The non program amounts include special education costs to be transferred to the special education fund from the general
fund.
(3)
These "Operating Transfers Out" are the result of a requirement by the State of Wisconsin Department of Public Instruction
to move the accounting for special education costs from the general fund to a special revenue fund and to show the net cost of
special education as an operating transfer from the general fund to the special revenue fund, rather than as general fund
expenditures.
The amounts shown for the years ended June 30, 2009 are excerpts from the audit reports which have been
examined by Schenck S.C., Certified Public Accountants, Green Bay, Wisconsin. The amounts shown for the
years ending June 30, 2010 and 2011 are excerpts from the audit report which has been examined by Kerber,
Rose & Associates, S.C., Certified Public Accountants, Shawano, Wisconsin (the "Auditor"). The amounts shown
for the year ended June 30, 2012 are estimated and the amounts shown for the year ended June 30, 2013 are
shown on a budgetary basis. The comparative statement of revenues and expenditures should be read in
conjunction with other financial statements and notes thereto appearing in Appendix A to this Official Statement.
The Auditor was not asked to perform any additional review in connection with this Official Statement.
18
Financial Statements
A copy of the District's Basic Financial Statements and Related Notes for the fiscal year ended June 30, 2011,
including the accompanying independent auditor’s report, is included as Appendix A to this Official Statement.
Potential purchasers should read such financial statements in their entirety for more complete information
concerning the District's financial position. Such financial statements have been audited by the Auditor, to the
extent and for the periods indicated thereon. The District has not requested the Auditor to perform any additional
examination, assessment or evaluation with respect to such financial statements since the date thereof, nor has
the District requested that the Auditor consent to the use of such financial statements in this Official Statement.
Although the inclusion of the financial statements in this Official Statement is not intended to demonstrate the
fiscal condition of the District since the date of the financial statements, in connection with the issuance of the
Bonds, the District represents that there has been no material adverse change in the financial position or results
of operations of the District, nor has the District incurred any material liabilities, which would make such financial
statements misleading.
UNDERWRITING
The Bonds have been purchased at a public sale by a group of Underwriters for whom ___________________
is acting as Managing Underwriter. The Underwriter intends to offer the Bonds to the public initially at the prices
which produce the yields set forth on the first page of this Official Statement plus accrued interest from
November 15, 2012, if any, which prices may subsequently change without any requirement of prior notice. The
Underwriter reserves the right to join with dealers and other underwriters in offering the Bonds to the public.
The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into
investment trusts) at prices lower than the public offering prices. In connection with this offering, the Underwriter
may over allocate or effect transactions which stabilize or maintain the market price of the Bonds at a level
above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be
discontinued at any time.
RATINGS
The District has requested that a rating be assigned to this issue by Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc. The District's long term general obligation debt is currently rated
"AA-". Moody’s Investors Service, Inc. has rated certain outstanding long-term obligations of the District “Aa3".
No application has been submitted to Moody's in connection with the Bonds. Such ratings reflect only the views
of such organizations and explanations of the significance of such ratings may be obtained from the rating
agencies furnishing the same. Generally, a rating agency bases its rating on the information and materials
furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such
ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely
by such rating agencies, if in the judgment of such rating agencies circumstances so warrant. Any such
downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Bonds.
Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and
the rating assigned by the rating agency should be evaluated independently. Except as may be required by the
Undertaking described under the heading “CONTINUING DISCLOSURE” neither the District nor the Underwriter
undertakes responsibility to bring to the attention of the owners of the Bonds any proposed change in or
withdrawal of such rating or to oppose any such revision or withdrawal.
REVENUE LIMITS ON WISCONSIN SCHOOL DISTRICTS
The Wisconsin Statutes impose revenue limits on Wisconsin school districts, including the District. In general
terms, for the 2012-13 school year, a school district may increase its revenue limit by $50.00 per pupil. Similar
limitations may be imposed for future school years. A school district, which wishes to exceed the revenue limit,
must obtain approval at a referendum.
The revenue limit is increased by funds needed for payment of debt service on general obligation debt
authorized before the effective date of the revenue limit statutes (August 12, 1993) (the "Effective Date") and
debt service on obligations issued to refund such debt. Debt authorized after the Effective Date is exempt from
the revenue limits if approved at a referendum, as is debt service on obligations issued to refund such debt.
The payment of debt service on the Bonds by the District is subject to the revenue limits.
19
TAX EXEMPTION
Quarles & Brady LLP, Milwaukee, Wisconsin, Bond Counsel, will deliver a legal opinion with respect to the
federal income tax exemption applicable to the interest on the Bonds under existing law substantially in the
following form:
"The interest on the Bonds is excludable for federal income tax purposes from the gross
income of the owners of the Bonds. The interest on the Bonds is not an item of tax
preference for purposes of the federal alternative minimum tax imposed by Section 55 of the
Internal Revenue Code of 1986, as amended (the "Code") on corporations (as that term is
defined for federal income tax purposes) and individuals. However, for purposes of
computing the alternative minimum tax imposed on corporations, the interest on the Bonds is
included in adjusted current earnings. The Code contains requirements that must be
satisfied subsequent to the issuance of the Bonds in order for interest on the Bonds to be or
continue to be excludable from gross income for federal income tax purposes. Failure to
comply with certain of those requirements could cause the interest on the Bonds to be
included in gross income retroactively to the date of issuance of the Bonds. The District has
agreed to comply with all of those requirements. The opinion set forth in the first sentence of
this paragraph is subject to the condition that the District comply with those requirements.
We express no opinion regarding other federal tax consequences arising with respect to the
Bonds."
The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral
federal income tax consequences to certain taxpayers. Bond Counsel will not express any opinion as to such
collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors as to
collateral federal income tax consequences.
From time to time legislation is proposed, and there are or may be legislative proposals pending in the Congress
of the United States that, if enacted, could alter or amend the federal tax matters referred to above or adversely
affect the market value of the Bonds. It cannot be predicted whether, or in what form, any proposal that could
alter one or more of the federal tax matters referred to above or adversely affect the market value of the Bonds
may be enacted. Prospective purchasers of the Bonds should consult their own tax advisors regarding any
pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or
proposed federal tax legislation.
DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS
The District will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265 of the
Internal Revenue Code of 1986 relating to the ability of financial institutions to deduct from income for federal
income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with Rule 15c2-12 promulgated by the Securities and Exchange
Commission (the "SEC"), pursuant to the Securities Exchange Act of 1934 (the "Rule"), the District shall
covenant pursuant to a Resolution adopted by the Governing Body to enter into an undertaking (the
"Undertaking") for the benefit of holders including beneficial holders of the Bonds to provide certain customarily
prepared and publicly available financial information and operating data relating to the District annually to the
Municipal Securities Rulemaking Board (the "MSRB"), and to provide notices of the occurrence of certain events
enumerated in the Rule electronically or in the manner otherwise prescribed by the MSRB to the MSRB. The
undertaking provides that the annual report will be filed not later than 270 days after the end of each
fiscal year. The District's fiscal year ends June 30th. The details and terms of the Undertaking, as well as
the information to be contained in the annual report or the notices of material events, are set forth in the
Continuing Disclosure Certificate to be executed and delivered by the District at the time the Bonds are
delivered. Such Certificate will be in substantially the form attached hereto as Appendix B. A failure by the
District to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will
20
have the right to obtain specific performance of the obligations under the Undertaking). Nevertheless, such a
failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal
securities dealer before recommending the purchase or sale of the Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market
price.
The District is required to file its continuing disclosure information using the Electronic Municipal Market Access
(“EMMA”) system. Investors will be able to access continuing disclosure information filed with the MSRB at
www.emma.msrb.org.
The District did not file its audited financial information, which the District had agreed to file under previous
continuing disclosure undertaking agreements as described in the Rule, for the fiscal year ended June 30, 2011
and the adopted budget data for June 30, 2011 within the time specified. As of the date of this Official
Statement, the District has filed the audited financial information and operating data in the manner prescribed by
the MSRB. The District has established procedures to ensure filing of audited financial information and
operating data are made in a timely manner in the future to the MSRB.
BOOK-ENTRY-ONLY SYSTEM
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The
Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership
nominee) or such other name as may be requested by an authorized representative of DTC. One fullyregistered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount
of such maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial
Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange
Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement
among Direct Participants of sales and other securities transactions in deposited securities, through electronic
computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a
wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding
company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which
are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC
system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust
companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct
Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating AA+. The
DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners
will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct
and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interests in Bonds, except in the event that use of the book-entry system for the
Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the
name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such
21
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose
accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time
to time. Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed
amendments to the Security documents. For example, Beneficial Owners of Bonds may wish to ascertain that
the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners.
In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and
request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed,
DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless
authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede
& Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent,
on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be
the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and
dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative
of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of
Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Bond certificates are required to be printed and delivered.
Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources
that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.
LITIGATION
There is no controversy or litigation of any nature now pending or, to the knowledge of the District, threatened,
restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or
affecting the validity of the Bonds or any proceedings of the District taken with respect to the issuance or sale
thereof.
22
LEGAL MATTERS
Legal matters incident to the authorization and issuance of the Bonds are subject to the unqualified approving
legal opinion of Quarles & Brady LLP, Bond Counsel. Such opinion will be issued on the basis of the law
existing at the time of the issuance of the Bonds. A copy of such opinion will accompany the Bonds and will be
available at the time of the delivery of the Bonds.
FINANCIAL ADVISOR
Robert W. Baird & Co., Milwaukee, Wisconsin has acted as Financial Advisor to the District in connection with
the issuance of the Bonds.
MISCELLANEOUS
Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not so
expressly stated, are set forth as such and not as representations of fact, and no representation is made that any
of the estimates will be realized.
Bond Counsel has not assumed responsibility for this Official Statement or participated in its preparation (except
with respect to the section entitled "Tax Exemption") and has not performed any investigation as to its accuracy,
completeness or sufficiency.
The execution and delivery of this Official Statement by its Clerk has been duly authorized by the District.
In accordance with the Rule, the Preliminary Official Statement is deemed final except for the omission of
certain information described in the Rule.
AUTHORIZATION
This Official Statement has been approved for distribution to prospective purchasers and the Underwriter of the
Bonds. The District, acting through its Clerk, will provide to the Underwriter of the Bonds at the time of delivery
of the Bonds, a certificate confirming to the Underwriter that, to the best of its knowledge and belief, the Official
Statement with respect to the Bonds, together with any supplements thereto, at the time of the adoption of the
Resolution and at the time of delivery of the Bonds, was true and correct in all material respects and did not at
any time contain an untrue statement of a material fact or omit to state a material fact required to be stated,
where necessary to make the statements in light of the circumstances under which they were made, not
misleading.
By /s/
District Clerk
23
APPENDIX A
BASIC FINANCIAL STATEMENTS AND RELATED NOTES
BROWN AND KEWAUNEE COUNTIES, WISCONSIN
For year ended June 30, 2011
Kerber, Rose & Associates, S.C.
Certified Public Accountants
Shawano, Wisconsin
A copy of the District's Basic Financial Statements and Related Notes for the fiscal year ended June 30, 2011,
including the accompanying independent auditor’s report, is included as Appendix A to this Official Statement.
Potential purchasers should read such financial statements in their entirety for more complete information
concerning the District's financial position. Such financial statements have been audited by the Auditor, to the
extent and for the periods indicated thereon. The District has not requested the Auditor to perform any additional
examination, assessment or evaluation with respect to such financial statements since the date thereof, nor has
the District requested that the Auditor consent to the use of such financial statements in this Official Statement.
Although the inclusion of the financial statements in this Official Statement is not intended to demonstrate the
fiscal condition of the District since the date of the financial statements, in connection with the issuance of the
Bonds, the District represents that there has been no material adverse change in the financial position or results
of operations of the District, nor has the District incurred any material liabilities, which would make such financial
statements misleading.
KERBER, ROSE & ASSOCIATES, S.C.
115 E. Fifth Street· Shawano, W[ 54166
1715) 526-9400 • Fax 1715) 524·2599
INDEPENDENT AUDITORS' REPORT
To the Board of Education
Luxemburg, Wisconsin
We have audited the acco.mpanyi~g financial statements of the govern,,:,enta[ activities, each major fund, and the
aggregate remaining fund Information of Luxernburg-Casco School Distnct (District), as of and for the year ended
June 30, 2011, which collective[y comprise the District's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the District's management Our responsibility is to express
opinions on these financla[ statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of Arnerica
and the standards applicable to financial audits contained in Government AuditJiJg Standards, issued by the
Comptroller Genera[ 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 of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
[n our opinion, the financial statements referred to above present fairly, in all rnateria[ respects, the respective
financla[ position of the governmental activities, each major fund, and the aggregate remaining fund inforrnation of
Luxemburg-Casco School District as .of June 30, 2011, and the respective changes in financial position for the year
then ended In conformity With accounting pnnclp[es generally accepted In the United States of America.
As discussed in Note 1, the District adopted the provisions of Governmenta[ Accounting Standards Board (GASB)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as of and for the year ended
June 30, 2011.
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Accounting principles generally accepted in the United States of America require that the management's
discussion and ana[ysls on pages 3 through 10, the schedules of funding progress and employer contributions of
other post-employment benefits on page 37 and the budgetary comparison information On page 38 be presented
to supplement the basic financial statements. Such information, although not a part of the basic financial
stat~ments, is required by the Governmenta[ Accounting Standards Board, who considers it to be an essential part
of flnancla[ reporting for p[aclng the basIc financial statements in an appropriate operational, economic, or
hlstonca[ cont~xt. 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
Inqul~les 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 fi~ancia[ 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
Luxemburg-Casco School District's financial statements as a who [e. The combining nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements. The
accompanying schedules of changes in assets and [iabilities - pupil activity fund and state financial assistance are
presented for purposes of additional analysis as required by Wisconsin State Single Audit Guidelines and the
Wisconsin Public School District Audit Manua[, issued by the Wisconsin Department of Public Instruction and are
not a required part of the basic financial statements. The combining non major fund financial statements, schedule
of changes in assets and liabilities - pupil activity funds, schedule of expenditures of federal awards and schedule
of state financial assistance are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. [n our
opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
~LM,~
;J J- C-~
ER E ,~OOE & ASSOC[ATES, S.C.
J;.a-
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December 5, 2011
[n accordance with Government Auditing Standards, we have also issued our report dated December 6,2011, 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 the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
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Members of the American and Wisconsin Institutes of Certified Public Accountants
www.kerberrose.com
2
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Management's Discussion and Analysis
For the Year Ended June 30, 2011
This discussion and analysis of the Luxemburg-Casco School District (District) financial information provides an
overall review of financial activities for the fiscal year.
FINANCIAL HIGHLIGHTS
MANAGEMENT'S DISCUSSION AND ANALYSIS
The assets of the District exceeded liabilities at the close of the fiscal year by $18,099,927 (net assets). Of
this amount $18,621,842 is invested in capital assets, net of related debt, $107,609 is restricted net assets
and ($629,524) is unrestricted net deficit. This results in a decrease of 4.3% from June 30, 2010.
The District contributed to a trust to fund other post-employment benefits with deposits of $391,815.
As of June 30, 2011, the District's governmental funds reported ending fund balance of $7,125,255, an
increase of $3,834,546 in comparison with the prior year. The ending fund balance includes $3,327,023
which is restricted for capital projects that are expected to be completed in 2011-2012.
At the end of the current fiscal year, assigned fund balance for the general fund is $3,687,513.
OVERVIEW OF THE FINANCIAL STATEMENTS
The District's financial statements are comprised of 1) district-wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements. [n addition, other supplementary information to the financial statements is
provided, which is intended to give the reader additional detail in support of the basic financial statements.
District-wide financial statements
The district-wide financial statements are the statement of net assets and statement of activities. These
statements present an aggregate view of the District's finances in a manner similar to private-sector
business. Both statements distinguish functions of the District that are principally supported by property taxes
and intergovernmental revenues (governmenta[ activities). The governmental activities include the District's
basic services, such as regular and special education and various support services.
The statement of net assets on page 11 presents information on all of the District's assets and liabilities, with
the difference between the two reported as net assets. This statement reports all of the District's assets (cash
and noncash) and its known [iabillties, both current and long-term. The purpose of this statement is to give
the reader an understanding of the Districts net worth. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the District is improving or deteriorating.
However, before such a determination can be made, other financial and nonfinancial factors need to be
considered, such as changes in the District's property tax base, its state and federal aid, and the condition of
its capital assets.
The statement of activities on page 12 presents information showing how the District's net assets changed
during the year. Revenues and expenses are reported by activity to give the reader an understanding of how
each of the District's activities is being supported. All changes in net assets are reported as soon as the
underlying event occurs, regardless of the timing of related cash flows. Revenues and expenses are
reported for all items that are known, even though they may not affect the actual cash flow of the District until
a future year (e.g., unoollected taxes, earned by unused vacation, and other post-employment benefit
obligations). This method of accounting is known as the accrual basis of accounting and is different from the
modified accrual basis of accounting used in the District's fund financial statements. The intent of the districtwide financial statements is to give the reader a long-term view of the District's financial condition.
LUXEMBURG·CASCO SCHOOL DISTRICT
Managemenfs Discussion and Analysis
J
Fund financial statements
The District also produces fund financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities. The District, like other state
and local governments, uses fund accounting to demonstrate compliance with finance related legal
reqUirements. Fund statements generally report operations in more detail than the district-wide statements
and provide information that may be useful in evaluating the District's near-term financing requirements.
There are two governmental fund financial statements, the balance sheet and the statement of revenues,
expenditures and changes in fund balance (operating statement). Generally, fund statements focus on neartemn inflows and outflows of spendable resources and their impact on fund balance. Such information may be
useful in assessing the District's near-term financing requirements. These statements are located on page
13and 14and 16and 17.
Since the focus of fund financial statements is narrower than that of the district-wide statements it is useful to
make comparisons between the information presented. This helps readers beiter understand the long-term
implication of the District's near-term financial decisions. A reconciliation to facilitate the comparison of the
statement of net assets to the governmental funds balance sheet is presented on page 15. A separate
reconciliation of the statement of activities to the governmental funds operating statement is presented on
page 18.
The District has two kinds of funds: governmental and fiduciary. Governmental funds include the District's
seven regular funds (general, special revenue, TEACH, debt service, capital projects, food service and
community service). The District has three fiduciary funds, private-purpose trust for scholarship funds, an
agency fund for student organizations and an employee benefits trust fund for employee benefit plans.
Financial information is presented separately on both the balance sheet and the statement of revenues,
expenditures and changes in fund balance for the general fund and capital projects fund as these are
considered to be major funds. The other governmental funds are considered nonmajor funds. The financial
information for these funds is combined and reported in the aggregate as "nonmajor governmental funds."
The major governmental funds are on pages 13 and 14 and 16 and 17 of this report. Individual fund data for
each of the nonmajor funds is in the combining statement, which can be found in the supplementary
information on pages 42 through 45.
The District serves as a trustee, or fiduciary, for student organizations, student scholarships and employee
benefit trust funds. The employee benefit trust fund is restricted for the employee benefit plans. These assets
do not directly benefit nor are under the direct control of the District. The District's responsibility is limited to
ensuring the assets reported in these funds are used only for their intended purposes. Fiduciary activities are
excluded from the district-wide financial statements because the District cannot use these assets to finance
its operations. Fiduciary fund statements are presented on pages 19 through 21.
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to the full understanding of the
data provided in the district-wide and fund financial statements. The notes to the financial statements follow the basic
financial statements and can be found on pages 22 through 37.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents aertain required
supplementary information concerning the District's budget and other post-employment benefits. The schedules of
funding progress and employer contributions are shown for the other post-employment benefits. The District adopts
an annual appropriation budget for its general fund. This required supplementary information can be found
immediately following the notes on pages 38 through 41.
This report also contains supplementary information. This includes combining statements for the nonmajor
governmental funds and a schedule of changes in assets and liabilities for the pupil activity fund. The supplementary
information can be found on pages 42 through 46.
FINANCIAL ANALYSIS
The District as a Whole
Summary of Net Assets
2011
ASSETS
Current Assets
Capital Assets
Less Accumulated Depreciation
Capital Assets, Net Book Value
8,791,830
30,714,961
10,857,567
19,857,394
Total Assets
2010
$
4,713,326
29,349,581
10,294,181
19,055,400
28,649,224
23,768,726
LIAS IUTIES
Current Liabilities
Long-Temn Liabilities
Total Liabilities
4,676,609
5,872,688
10,549,297
1,530,598
3,322,849
---4,853,447
NET ASSETS
Invested in Capital Assets
Restricted
Unrestricted (Deficit)
18,621,842
107,609
(629,524)
------.l163,620)
Total Net Assets
$
19,055,400
23,499
18,099,927
18,915,279
As indicated by the table above, total net assets are $18,099,927 at June 30, 2011. Net assets can be separated into
three categories: invested in capital assets, net of related debt, restricted assets, and unrestricted assets.
Invested in capital assets net of related debt, is a combination of funds available for capital assets, plus capital assets
at original cost less accumulated depreciation and related debt. The original cost of capital assets is $30,714,961 at
June 30, 2011, which is an accumUlation of capital assets year after year less any capital disposals. The
accumulated depreciation is the accumUlation of depreciation expense since acquisition. In accordance with
generally accepted accounting principles, depreciation expense is recorded on the original cost of the asset, less an
estimated salvage value, and expensed over the estimated useful life of the asset. Total accumulated depreciation is
$10,857,567 at June 30, 2011. Although the District's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the District's net assets is restricted and represents resources that are subject to external
restrictions on how they may be used. Restricted assets consists of assets required to be used for donor intentions of
$16,317, debt retirement of $2,773, and assets required to be used for food service is $88,519.
Tile District's unrestricted net assets decreased by $815,352 from the prior fiscal year.
Change in Net Assets
The following chart illustrates the District's sources of revenues by percentages:
The following table shows the changes in net assets for the fiscal years ended June 30, 2011 and 2010.
Amounts
2011
Percent
of Total
Amounts
2010
Percent
of Total
56.49%
Program Revenues
Charges for Services
Operating Grants and Contributions
Total Program Revenues
$
920,771
2,592,421
3,513,192
4.2%
11.8%
16.0%
865,270
2,321,135
3,186,405
4.0%
10.8%
14.8%
6,742,524
30.6%
6,253,093
29.2%
2T1,524
11,423,877
34,821
18,478,746
1.3%
51.9%
0.2%
84.0%
276,809
11,666,247
30,532
18,231,521
1.3%
54.5%
85.2%
21,991,938
100.0%
21,413,086
100.0%
13,126,126
8,675,605
308,276
697,283
22,807,290
57.6%
38.0%
1.4%
3.0%
100.0%
12,192,599
8,744,381
247,424
655,807
21,840,211
55.8%
40.0%
1.2%
3.0%
100.0%
o Intermediate Sources
o State Sources
General Revenues
Property Taxes Levied for
General Purpose
Property Taxes Levied for
Community Services
State and Federal General Aids
Other
Total General Revenues
Total Revenues
Expenses
Instruction
Support Services
Community Services
Non-Program Transactions
Total Expenses
Change in Net Assets
(815,352)
$
0.2%
(427,125)
lID Local Sources
!!iillnterdistrict Sources
i:iI Federal Sources
Ell Other Sources
l
1>10.09%
The District relies primarily on property taxes and general state aid to fund governmental activities. General state aid
is paid according to a forrnula taking into consideration District spending and property values as compared to
spending and property values for the state as a whole. Property taxes and general state and federal aid account for
91.5% of district-wide revenues.
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Local sources of revenues total $7,690,680 and include revenues to the general fund of $6,843,138, capital projects
fund of $4,763, and other governmental funds of $842,779.
Interdistrict sources of revenues of $301 ,082 are funds from other districts for open enrollment to the general fund.
Key elements of this change are as follows:
Intermediate sources of revenues total $49,432, are arnounts received from CESAs for special needs students. This
amount is attributable to the general fund.
Total revenues increased by $578,852 primarily due to increases in operating grants and property tax revenue which
helped to offset decreases in state and federal general aids.
State sources of revenue total $12,422,281 and include revenues to the general fund of $12,412,089 and other
governmental funds of $1 0, 192.
Total expenses increased by $967,079 primarily due to increases in instruction expenses related to additional
employees and related benefits.
Federal sources of reVenue total $1,505,296 and include revenue to the general fund of $1,252,916 and other
governrnental funds of $252,380.
Other sources of revenue total $19,720 and are all revenues of the general fund.
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Budgetary highlights
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The following chart illustrates the District's expenses by percentages:
The District amended its budget during the year as shown in the following chart:
2010-2011
1!1IInterest on Short-Term Debt
!iliIlnstruction
o Interest on Short~Term Debt
mn Community Services
hl Non-Program Transactions
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REVISED
BUDGET
$ 19,081,202
$ 19,081,202
19,164,403
(83,201)
$
19,167,264
(86,062)
$
BUDGET
REVISIONS
VARIA~
PERCENT
General Fund
Revenues and Other
Financing Sources
Expenditures and
Other Financing Uses
Difference
Depreciation
ORIGINAL
BUDGET
ACTUAL
AMOUNTS
(BUDGETARY
BASIS)
2,861
2,861
19,414,400
333,198
1.8%
18,870,843
543,557
296,421
629,619
1.5%
The District's actual general fund revenues were more than the revised budget by $333,198, a variance of less than
1.8%. This is largely due to the general fund received more than anticipated revenues from federal sources.
[12.96%
Expenses include instruction of $13,126,126, support services of $7,948,979, interest on short-term debt of $48,935,
community services of $308,276, depreciation of $677,691, and non-program transactions of $697,283.
Governmental Funds
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, the
spendable fund balance may serve as a useful measure of the District's net resources available for spending at the
end of the fiscal year.
The District's actual general fund expenditures were less than the revised budget by $296,421, a variance of less than
1.5%. The transfer from the general fund to the special education fund was less than budgeted by $289,630 as the
District maximized its ARRA special education funds.
There is a perspective difference between the budget and reporting under generally accepted accounting principles
(GAAP). For budgetary purposes the special education fund was budgeted separate from the general fund, but for
GAAP the two are combined. There is a reconciliation to the statement of revenues, expenditures and changes In
fund balances provided as part of the notes to the required supplementary information on.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2011, the District's governmental funds reported combined ending fund balances of $7,125,255, an
increase of $3,834,546 in comparison with the prior year. A portion of the fund balance is restricted for donor
intentions ($16,317), for capital projects ($3,327,023), for debt service ($2,773) and for food service ($88,519).
The general fund is the chief operating fund of the District. As of June 30, 2011, the total fund balance of the general
fund was $3,690,123. A portion of the fund balance has been assigned to reflect the intent of the Board of Education
to use the funds for the specific purpose of maintaining sufficient working capital to finance operating expenditures to
minimize short-term borrowing for cash flow purposes ($3,687,513). A portion of the fund balance has been
committed for contractual obligations. The fund balance of the general fund increased by $543,557 from the prior
year.
At the end of the fiscal year, the District had invested a net of $19,857,394 in a broad range of capital assets,
including buildings, sites, and equipment. This amount represents an increase of $801,994. Total accumulated
depreciation on these assets is $10,857,567.
Asset acquisitions totaled $1,479,685 for the fiscal year. Of this amount, $1,240,315 is for the construction in
progress for projects expected to be completed in 2011-2012 school year.
The District recognized depreciation expense of $677,691 during the fiscal year.
2011
2010
Fiduciary Funds
Land
The District's fiduciary funds include a private purpose trust fund, an employee retirement benefits trust fund and an
agency fund.
Net assets of the private-purpose trust fund at the end of the year amounted to $8,213.
restricted for scholarships. Net assets decreased $891 from the prior year.
This entire amount is
Net assets of the employee benefits trust fund at the end of the year amounted to $1,170,430. This entire amount is
restricted for post-employment benefit plans. Net assets increased $228,305 from the prior year.
As of June 30, 2011, the agency fund reported that $184,244 was due to student organizations, which is a decrease
of $16,250 from the prior year.
665,352
Buildings and Improvements
$
665,352
24,581,449
24,581,449
Fumiture and Equipment
4,227,845
4,102,780
Construction in Progress
1,240,315
Less Accumulated Depreciation
Capital Assets Net of Depreciation
~0,857,567.L
$
19,857,394
(10,294,181)
$
19,055,400
Management's Discussion and Ana[ysis
CAPITAL ASSET AND DEBT ADMINISTRATION
Long-Term Debt
- - - -2011
----Bond Anticipation Note
Capital Lease
Compensated Absences
Other Post-Employment Benefits
2,760,000
1,802,575
499,128
3,782,972
8,844,675
The District issued $4,562,575 in loans during the currentfisca[ year to fund the capital projects expected for
completion in 2011-12.
{
I
FACTORS BEAR[NG ON THE DISTRICT'S FUTURE
Modest growth in enrollment and revenues is projected for the District over the next five years because the
Luxemburg-Casco School District is considered to be a desirable location in which to reside for people
working in the Green Bay, Wisconsin area.
[t is anticipated that existing District facilities will not be sufficient to handle increasing enrollment for at least
the next five years.
The District's facilities are currently in good condition. The District was able to pass a referendum and
implement a performance contract that provided updates to the heating and cooling system at the
Intermed'late and Middle Schools along wtth other renovations and energy saving measures in all buildings.
The District is proposing a nearly balanced budget for the 2011-2012 school year. Like all districts in
Wisconsin, we will receive significantly less state aid but we were also able to reduce expenditures for fringe
benefits under newly implemented state laws. Combined witt, savings in health insurance premiums
achieved by making some changes in structure, the savings will nearly offset the reduced state aid.
The State of Wisconsin has proposed reduced funding for school districts, but also has provided legislation to
help control costs.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is prepared to provide 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 Luxemburg-Casco School District, Jan[ce DeMeuse - Business Manager, 318 North Main
Street, P.O. Box 70, Luxemburg, W[ 54217-0070.
10
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I
FINANCIAL STATEMENTS
District-Wide Statement of Net Assets
As of June 30, 2011
District-Wide Statement of Activities
Governmental
Activities
ASSETS
Current Assets
Cash and Investments
Receivables
Taxes
Accounts
Due from State
Due from Federal
Due from Other Governments
Total Current Assets
Net (Expense)
Revenue and
Changes in Net
Assets
Program
Revenues
Operating
Expenses
5,942,602
2,175,958
3,711
198,841
443,279
27,439
8,791,830
Noncurrent Assets
Land
Land 1m provements
Buildings and Building Improvements
Machinery and Equipment
Athletic Facilities
Construction in Progress
Less: Accumulated Depreciation
Total Noncurrent Assets
665,352
224,613
21,638,821
4,227,845
2,718,015
1,240,315
(10,857,567)
19,857,394
TOTAL ASSETS
28,649,224
LIABILITIES
Current Liabilities
Accounts Payable
Accrued Liabilities
Payroll, Payroll Taxes, Insurance
Interest
Due to Fiduciary Fund
Current Portion of Long-Term Obligations
Total Current Liabilities
100,293
1,536,282
38,047
30,000
2,971,987
4,676,609
Noncurrent Liabilities
Noncurrent Portion of Long-Term Obligations
5,872,688
TOTAL LIABILITIES
10,549,297
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted Deficit
18,621,842
107,609
(629,524)
TOTAL NET ASSETS
$
18,099,927
GOVERNMENTAL ACTIVITIES
Instruction
Regular Instruction
Vocational Instruction
Physical Instruction
Special Instruction
Other Instruction
Total Instruction
Support Services
Pupil Services
Instructional Staff Services
General Administration Services
Building Administration Services
Business Administration Services
Operations and Maintenance
Pupil Transportation
Food Service Operations
Central Services
Insurance
Interest on Debt
Other Support Services
Community Services
Depreciation - Unallocated
Total Support Services
Open Enrollment
Non-Open Enrollment
Adjustments and Refunds
Total Nonaprogram Transactions
TOTAL GOVERNMENTAL ACTIVITIES
Charges For
Services
9,249,529
722,261
630,952
2,194,810
328,574
13,126,126
636,968
877,205
508,926
923,741
562,659
1,738,743
920,895
815,656
698,393
154,004
48,935
111,789
308,276
677,691
8,983,881
60,494
Grants and
Contributions
895,985
1,433,864
34,060
94,554
2,329,849
552,211
262,572
552,211
262,572
377,988
299,563
19,732
697,283
274,006
22,807,290
920,771
CHANGE IN NET ASSETS
(8,293,050)
(722,261)
(630,952)
(760,946)
(294,514)
(10,701,723)
(636,968)
(877,205)
(508,926)
(923,741)
(562,659)
(1,738,743)
(920,895)
(873)
(698,393)
(154,004)
(48,935)
(111,789)
(308,276)
(677,691)
(8,169,098)
(103,982)
(299,563)
(19,732)
(423,277)
274,006
GENERAL REVENUES
Property Taxes
General Purposes
Community Services
State and Federal Aids not Restricted to
Spedfic Functions
Equalization and Impact Aid
Interest and Investment Eamings
Miscellaneous
Total General Revenues
Governmental
Activities
2,592,421
(19,294,098)
6,742,524
277,524
11,423,677
8,353
26,468
18,478,746
(815,352)
NET ASSETS - BEGINNING OF YEAR
18,915,279
NET ASSETS - END OF YEAR
18,099,927
See Accompanying Notes
11
12
(
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(
Balance Sheet
Governmental Funds
As of June 30, 2011
General
Fund
ASSETS
Receivables
Taxes
Accounts
Due from State
Due from Federal
Due from Other Governments
$
2,413,175
other
Governmental
Funds
Capital
Projects
$
102,112
3,427,316
2,175,957
3,665
198,841
437,328
27,439
TOTAL ASSETS
$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable
Accrued Liabilities
Payroll, Payroll Taxes, Insurance
Due to Other Fund
Total Liabilities
5,256,405
$
$
5,951
$
3,427,316
$
100,293
108,109
$
$
8,791,830
$
100,293
1,536,282
30,000
1,666,576
100,293
3,327,023
16,317
2,773
88,519
3,327,023
16,317
2,773
88,519
2,610
500
3,687,513
7,125,255
2,610
500
3,687,513
3,690,123
TOTAL LIABILITIES AND FUND BALANCES
13
$
5,256,405
108,109
3,327,023
$
3,427,316
5,942,602
2,175,957
3,711
198,841
443,279
27,439
46
1,536,282
30,000
1,566,282
FUND BALANCES
Restricted
Capital Projects
Donor Intentions
Debt Service
Food Service
Committed
General Fund
Community Service
ASSigned
Total Fund Balances
Total
Governmental
Funds
$
108,109
$
8,791,830
14
Reconciliation of the Balance Sheet - Governmental Funds to the District-Wide Statement of Net Assets
As of June 30, 2011
I
$
Total Fund Balances - Governmental Funds
7,124,755
f
Total net assets reported for governmental activities in the statement
of net assets are different from the amount reported above as total
governmental funds fund balance because:
Capital assets used in government activities are not financial resources
and therefore are not reported in the fund statements. Amounts reported
for governmental activities in the statement of net assets:
Capital Assets
Accumulated Depreciation
Certain liabilities, including bonds and notes payable, are not due in the
current period and therefore not reported in the fund statements. Liabilities
reported in the statement of net assets that are not reported in the funds
balance sheet
Long-Term Debt
Accrued Interest on General Obligation Debt
Post-Employment Benefits
Total Net Assets - Governmental Activities
[
30,714,961
(10,857,567)
(4,562,575)
(38,047)
(3,782,972)
(499,128)
19,857,394
(8,882,722)
$ 18,099,427
I
(
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15
THIS PAGE LEFT BLANK INTENTIONALLY
Statement of Revenues, Expenditures and Changes In Fund Balances
Governmental Funds
Capital
General
Projects
REVENUES
Property Taxes
Other Local Sources
lnterdistrict Sources
State Sources
Federal Sources
Other Sources
6,742,524
100,614
301,082
49,432
12,412,089
1,252,916
19,720
20,878,377
Tota! Revenues
r
Other
Governmental
Funds
277,524
565,255
4,763
[
10,192
252,380
1,105,351
[
8,357,483
736,086
629,952
2,194,810
327,315
12,245,646
Total Instruction
[
;
Support Services
Pupil Services
Building AdmInistration Services
Business AdmInistration Services
Central Services
Insurance
Interest
Community Services
Total Support ServIces
636,968
877,205
508,926
960,844
562,659
1,738,743
1,098,531
880,486
359,829
694,005
154,004
10,888
152,565
--"""7;395,338
1,240,315
Non~Program
Transactions
Open Enrollment
Non-Open Enrollment
Adjustments and Refunds
Total Non-Program Transactions
377,988
299,563
19,732
697,283
Total Expenditures
20,338,267
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
--~
1,240,315
(1,235,552)
OTHER FINANCING SOURCES (USES)
Sale of Non-Capital Assets
Capital Lease Proceeds
Long-Term Debt Proceeds
Total Other Financing Sources (Uses)
3,447
NET CHANGES IN FUND BALANCES
3,447
1,802,575
2,760,000
4,562,575
543,557
3,327,023
FUND BALANCES - BEGINNING OF YEAR
3,146,566
FUND BALANCES - END OF YEAR
3,690,123
See Accompanying Noles
16
7,020,048
670,632
301,082
49,432
12,422,281
1,505,296
19,720
21,988,491
4,763
EXPENDITURES
Instruction
Regular Instruction
Vocational instruction
Special Instruction
Other Instruction
Total
Governmental
Funds
3,327,023
I
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I
I
I
I
I
1,000
1,259
2,259
815,656
15,194
308,276
1,139,126
8,357,483
736,086
630,952
2,194,810
328,574
12,247,905
636,968
877,205
1,389,412
960,844
922,488
1,738,743
1,098,531
815,656
709,199
154,004
10,888
308,276
152,565
9,774,779
377,988
299,563
19,732
697,283
1,141,385
(36,034)
22,719,967
(731,476)
3,447
1,802,575
-------
2,760,000
4,566,022
(36,034)
3,834,546
144,143
3,290,709
108,109
7,125,255
See Accompanying Noles
17
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances·
Governmental Funds to the District-Wide Statement of Activities
$ 3,834,546
Net Change in Fund Balances· Total Governmental Funds
Amounts reported for governmental activities in the statement of
activities are different because:
The acquisition of capital assets are reported in the governmental funds as
expenditures. However, for governmental activities those costs are shown in
the statement of net assets and allocated over their estimated useful lives as
annual depreciation expense in the statement of activities.
Capital outlay reported in governmental fund statements
Depreciation expense reported in the statement of activities
Amount by which capital outlays are more than depreciation in
the current period.
Vested ernp[oyee benefits are reported in the governmental funds when
amounts are paid. The statement of activities reports the value of benefits
earned during the year.
Compensated absences paid in current year
Compensated absences earned in current year
Amounts paid are more than amounts earned by
I
[
1,479,685
(677,691)
801,994
[
125,613
(84,837)
40,776
391,815
(1,283,861)
Post-employment benefits paid in current year
Post-employment benefits earned in current year
Amounts paid are less than amounts earned by
(892,046)
Debt incurred in governmental funds is reported as an other financing
source, but is reported as an increase in outstanding long-term debt in the
statement of net assets, and does not affect the statement of activities
The amount of debt incurred in the current year is
[n governmental funds interest payments on outstanding debt are reported
as an expenditure when paid. [n the statement of activities interest is
reported as incurred.
The amount of interest accrued during the current period
Change in Net Assets - Governmental Activities
(4,562,575)
_
(38,047)
$
18
(
(815,352)
(
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I
Statement of Net Assets
Fiduciary Funds
As of June 30, 2011
PrivatePurpose Trust
ASSETS
Due from Other Fund
Total Assets
$
8,213
$
8,213
$
8,213
$
$
1,140,430
30,000
1,170,430
LIABILITIES
Due to Student Organizations
NET ASSETS
Restricted
Agency
Funds
Employee
Benefits Trust
1,170,430
I
I
r
$
184,244
Total
$
184,244
1,332,887
30,000
1,362,887
184,244
184,244
$
1,178,643
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19
20
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
PrivatePurpose Trust
ADDITIONS
Contributions
Interest
Total Additions
$
DEDUCTIONS
Scholarst1ips Awarded
Payments from Employee-Benefit Trust
Total Deductions
I
391,815
198,305
590,120
_ _T_o~
$
1,000
1,000
361,815
362,815
(891)
228,305
227,414
9,104
942,125
951,229
1,000
NET ASSETS - BEGINNING
$
391,815
198,414
590,229
361,815
361,815
CHANGE IN NET ASSETS
NET ASSETS - ENDING
J
Employee
Benefits Trust
109
109
8,213
$
Notes to the Financial Statements
June 30, 2011
1,170,430
$
1,178,643
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies of Luxemburg-Casco School District (District) is presented to
assist in understanding the District's financial statements. Tile financial statements and notes are representations
of the District's management who is responsible for the integrity and objectivity of the financial statements. These
accounting policies conform to generally accepted accounting principles and have been consistently applied in the
preparation of the financial statements.
The District's financial statements are prepared in accordance with generally accepted accounting principles
(GAAP). The Governmental Accounting Standards Board (GAS B) is responsible for establishing GAAP for state
and local governments through its pronouncements (Statements and Interpretations). The more significant
accounting policies established in GAAP and used by the District are discussed below.
NATURE OF OPERATIONS
The Luxemburg-Casco School District is organized as a common school district. The District, govemed by a
seven-member elected school board, operates grades Kindergarten through 12 and is comprised of all or parts of
nine taxing districts.
The accompanying financial statements present the activities of Luxemburg-Casco School District. The District is
not a component unit of another reporting entity nor does it have any component units.
The financial reporting entity consists of (a) organizations for which the standalone government is financially
accountable and (b) the standalone government that is controlled by a separately elected governing body that is
legally separate and is fiscally independent. All of the accounts of the District comprise the standalone
government.
DISTRICT-WIDE FINANCIAL STATEMENTS
The statement of net assets and the statement of activities present financial information about the District's
governmental activities. These statements include the financial activities of the overall government in its entirety,
except those that are fiduciary. Eliminations have been made to minimize the double counting of internal
transactions. Governmental activities generally are financed through taxes, intergovernmental revenues, and
other nonexchange transactions.
The statement of activities presents a comparison between direct expenses for each function or segment of the
District's governmental activities. Direct expenses are those that are specifically associated with and are clearly
identifiable to a particular function or segment. Program revenues include (1) charges to customens or applicants
who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment,
and (2) operating grants and contributions. Revenues that are not classified as program revenues, including all
taxes, are presented as general revenues.
FUND FINANCIAL STATEMENTS
Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are
excluded from the district-wide financial statements. Major individual governmental funds are reported as separate
columns in the fund financial statements.
21
22
June 30, 2011
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
FUND FINANCIAL STATEMENTS
FUND FINANCIAL STATEMENTS (Continued)
Fiduciary Funds (Continued)
Fund financial statements of the reporting entity are organized into individual funds each of which are considered
to be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing
accounts which constitute its assets, liabilities, fund equity, revenues, and expenditures.
Funds are organized as major funds or non major funds within the governmental statements. An emphasis is
placed on major funds within the governmental categories. A fund is considered major if it is the primary operating
fund of the District or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures of that individual governmental fund are at least 10
percent of the corresponding total for all funds of that category or type and
b.
The same element that met the 10 percent criterion in (a) is at least 5 percent of the corresponding
element total for all governmental funds combined.
c.
[n addition, any other governmental fund that the District believes is particularly important to financial
statement users may be reported as a major fund.
Governmental Funds
Governmental funds are identified as either general, special revenue, debt service, or capital projects based upon
the following guidelines:
General Fund
Private-Purpose Trust
This fund reports a trust arrangement under which principal and income benefit a college scholarship
program.
Employee Benefit Trust
This fund is used to account for resources held in trust for formally established post-employment benefit plans.
Major Funds
The District reports the following major governmental funds:
General Fund - The general fund is the operating fund of the District. It is used to account for all financial
resources of the District except those required to be accounted for in other funds.
Capital Projects Fund - This fund accounts for proceeds from long-term borrowing and other resources used
for capital improvements.
Nonmajor Funds
The District reports the following nonmajor funds:
The general fund is the primary operating fund of the District and is always class[fied as a major fund. It is
used to account for all financial resources except those required to be accounted for In another fund.
Special Revenue Funds
Special Revenue Trust Fund - This fund accounts for trust funds from private gifts and donations that can be
used for District operations. The source of each fund is gifts and donations from private parties.
TEACH Fund - This fund accounts for the resources accumulated and payments made for technology.
Special revenue funds are used to account for the proceeds of specific revenue sources (other than major
capital projects) that are [egally restricted to expenditures for specified purposes.
Debt Service Funds
Debt service funds are used to account for the accumUlation of resources for, and the payment of, general
long-term principal, interest, and related costs.
Capital Projects Funds
Capital projects funds are used to account for financial resources to be used for the acquisition or construction
of major capital expenditures.
Fiduciary Funds
Agency Funds
Agency funds are used to account for assets held by the District as an agent for various student organizations.
23
Debt Service Fund - This fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental activities.
Food Service Fund - This fund accounts for the activities associated with the District's hot lunch and breakfast
programs.
Communitv Service Fund - This fund accounts for activities serving the community that are funded by property
taxes and fees.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of
accounting. Measurement focus indicates the type of resources being measured such as current financial
resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of
accounting indicates the timing of transactions or events for recognition in the financial report.
The district-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting. The fiduciary funds have no measurement focus and utilize the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded at the time [iabilities are incurred,
regardless of when the related cash transaction takes place. Nonexchange transactions, in which the District
gives or receives value without directly receiving or giving equal value in exchange, including property taxes,
grants, entitlements and donations.
24
June 30, 2011
June 30, 2011
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued)
On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied,
Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
The governmental fund statements are reported using the current financial resources measurement focus and the
modified accrual basis of acoounting. Under this method, revenues are recognized when measurable and
available. The District considers all revenUes reported in the governmental funds to be available if the revenues
are collected within sixty days after the end of the fiscal year. Expenditures are recorded when the related fund
liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and
compensated absences which are recognized as expenditures to the extent they have matured. General capital
asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and
acquisitions under capital leases are reported as other financing sources.
ACCOUNTS RECEIVABLE
Accounts receivable are recorded at gross amounts with uncollectible amounts recognized under the direct writeoff method. No allowance for uncollectible accounts has been provided since it is believed that the amount of
such allowance would not be material.
CAPITAL ASSETS
Capital assets are reported at actual or estimated historical cost. Donated assets are reported at estimated fair
value at the time received.
Capitalization thresholds (the dollar value above which asset acquisitions are added to the capital asset accounts),
depreciation methods, and estimated useful lives of capital assets reported In the district-wide statements using a
threshold of $5,000. All depreciable capital assets are depreciated on a straight-line basis over the years:
Asset
Land Improvements
Buildings and Improvements
Athletic Facilities
Under the terms of grant agreements, the District may fund certain programs by a combination of specific costreimbursement grants, categorical block grants, and general revenues. Therefore, when program expenses are
incurred, both restricted and unrestricted net assets may be available to finance the program. It is the District's
policy to first apply cost-reimbursement grant resources to such programs, followed by general revenues,
Years
15-20
15 -70
5-15
15-50
Depreciation is used to allocate the actual or estimated historical cost of all capital assets over their estimated
lives.
CASH AND INVESTMENTS
The District's cash and investments are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from date of acquisition. Cash balances for individual
funds are pooled unless maintained in segregated accounts.
State statutes permit the District to invest available cash balances, other than debt service funds, in time deposits of
authorized depositories, U.S. Treasury obligations, U.S. agency issues, high grade commercial paper, and the local
government pooled-investment fund administered by the State Investment Board. Available balanoes in the debt
service fund may be invested in mu nicipal obligations, obligations of the United States, and the local government
pooled-investment fund.
Donations to the District of securities or other property are considered trust funds and are invested as the donor
specifies. In the absence of any specific directions, the District may invest the donated items in accordance with laws
applicable to trust investments.
INTERFUND ACTIVITY
In the process of aggregating the financial information for the district-wide statement of net assets and statement of
activities, some amounts reported as interfund activity and balances in the fund financial statements have been
eliminated or reclassified,
Fund Financial Statements
Interfund activity, if any, within and among the governmental categories is reported as follows in the fund financial
statements:
Interfund transfer - Flow of assets from one fund to another where repayment is not expected, are reported
as transfers in and out.
District-Wide Financial Statements
PROPERTY TAXES
The aggregate district tax levy is apportioned and certified by November 6 of the current fiscal year for collection to
comprising municipalities based on the immediate past October 1 full or "equalized" taxable property values. As
permitted by a collecting municipality's ordinance, taxes may be paid in full or In two or more installments with the
first installment payable by the subsequent January 31 and a final payment no later than the following July 31. On
or before January 15, and by the twentieth of each subsequent month thereafter, the District may be paid by the
collecting municipalities its proportionate share of tax collections received through the last day of the preceding
month. On or before August 20, the County Treasurer makes full settlement to the District for any remaining
balance. The County assumes all responsibility for delinquent real property taxes.
Property taxes are recognized as revenue in the period for which the taxes are levied. The 2010 tax levy is used
to finance operations of the District's fiscal year ended June 30, 2011. All property taxes are considered due on
January 1, when an enforceable lien Is assessed against the property and the taxpayer is liable for the taxes. All
taxes are collected within 60 days of June 30 and are available to pay current liabilities.
25
Interfund activity and balances, if any, are eliminated or reclassified in the district-wide financial statements as
follows:
Internal activities - Amounts reported as interfund transfers in the governmental fund financial statements are
eliminated in the district-wide statement of activities.
LONG-TERM OBLIGATIONS
In the district-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds, Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund Iypes recognize bond premiums and discounts, as well as bond
Issuance costs, during the current period. The face amount of debt issued is reported as an other financing source.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses, Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
26
June 30, 2011
June 30, 2011
I
Fund Financial Statements (Continued)
COMPENSATED ABSENCES
The District's sick pay policy does not allow accumulated employee benefits to vest, with the exception of unused
s~ck pay for employees electing early retirement. The District's policy allows employees to earn varying amounts of
sick pay for each year employed. Upon early retirement between ages of 55 and 62, an employee is entitled to
receive full pay for all unused sick pay. An estimate of the present value of future benefits is recognized as a longterm liability in the statement of net assets.
CLAIMS AND JUDGMENTS
Claims and judgments are recorded as liabilities if all the conditions of the Governmental Accounting Standards
Board pronouncements are met. Claims and judgments that would normally be liquidated with available
expendable financial resources are recorded during the year as expenditures in the appropriate governmental fund
types. If they are not liquidated with available expendable financial resources, a liability is recorded in the
statement of net assets. The related expenditure is recognized when the liability is liquidated. There were no
significant claims or judgments at year-end.
FUND EQUITY DESIGNATIONS
District-Wide Statements
Equity is classified as net assets and displayed in three components:
Invested in capital assets, net of related debt - Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds,
mortgages, notes or other borrowings that are attributable to the acquisition, construction, or
improvements of these assets.
Restricted net assets - Consist of net assets with constraints placed on the use either by (1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governrnents; or (2) law
through constitutional provisions or enabling legislation.
Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in
capital assets, net of related debt."
Restricted fund balance represents amounts constrained for a specific purpose by external parties, constitutional
provision or enabling legislation.
Committed fund balance represents amounts constrained for a specific purpose by a government using its highest
level of decision-making authority. It would require action by the same group to remove or change the constraints
placed on the resources. The action to constrain resources must occur prior to year-end; however, the amount
can be detenmined in the subsequent period. The school board is the decision-making authority that can, by
adoption of a resolution prior to the end of the fiscal year, commit fund balance.
Assigned fund balance, in the general fund, represents amounts constrained by the school board for a specific
intended purpose. The District has delegated that authority to the Superintendent. Assigned fund balance in all
other governmental funds represents any positive remaining amount after classifying nonspendable, restricted or
committed fund balance.
Unassigned fund balance, in the general fund, represents amounts not classified as nonspendable, restricted,
committed or assigned. The general fund is the only fund that would report a positive amount in the unassigned
fund balance.
The District, unless otherwise required by law or agreements, spends funds in the following order. restricted first,
then committed, then assigned, and lastly unassigned.
The District has not adopted a minimum fund balance policy.
In addition, GASB 54 modified the definition of a special revenue fund. Under the new definition, the special
education fund is no longer considered a special revenue fund and it is now reported as part of the general fund.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenditures during the reporting period. Actual results may differ from these estimates.
When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted
resources first, then unrestricted resources as they are needed.
Fund Financial Statements
In fiscal 2011, the District implemented Governmental Accounting Standards Board Statement No. 54, Fund Balance
Reporting and Govemmental Fund Type Definitions (GASB 54). GASB 54 changed the terminology and classification
of fund balance to reflect spending constraints on resources, rather than availability for appropriation. This approach
is intended to provide users more consistent and understandable information about a fund's net resources.
Under GASS 54, fund balance is classified as either 1) nonspendable, 2) restricted, 3) committed, 4) assigned, or 5)
unassigned:
Nonspendable fund balance represents amounts that cannot be spent due to form (such as inventories and
prepaid amounts), or amounts that must be maintained intact legally or contractually (such as the principal of a
permanent fund).
27
28
June 30, 2011
June 30, 2011
NOTE 2 - CASH AND INVESTMENTS (Continued)
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2011 the District had the following investments:
The debt service fund accounts for its transactions through separate and distinct bank and investment accounts
as required by state statutes. In addition, the trust and agency funds use separate and distinct accounts. All other
funds share in common bank and investment accounts.
The District is authorized to invest its funds in accordance with Wisconsin Statutes. Allowable investments are as
follows:
Investment
$
Securities
Money Market Funds
$
Total
Time deposits in any credit union, bank, savings bank or trust company maturity in three years or less
Bonds or securities of any county, city, drainage district, technical college district, village, town, or
school district of the state. Also, bonds issued by a local exposition district, local professional
baseball park district, local professional football stadium district, local cultural arts district or by the
University of Wisconsin Hospitals and Clinics
Bonds or securities guaranteed by the U.S. Government
The Local Government Pooled Investment Fund and the Wisconsin Investment Trust
Any security maturing in seven years or less and having the highest or second highest rating category
of a nationally recognized rating agency
Securities of an open end management investment company or investment trust, subject to various
conditions and investment options
Repurchase agreements with public depositories, with certain conditions
Additional restrictions could arise from local charters, ordinances, resolutions and grant resolutions of the District.
Fair
Market Value
1,070,990
1,038,431
2,109,421
Interest Rate Risk - The District's investment policy does not limit investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates.
Credit Risk - State law limits investments in commercial paper, corporate bonds, and mutual bond funds to the top
two ratings issued by nationally recognized statistical rating organizations. The District does not have an investment
policy that further limits its investment choices.
Concentration of Credit Risk - The District placed no limit on the amount the District may invest in anyone issuer.
Investments are stated at fair value, which is the amount at which an investment could be exchanged In a current
transaction between willing parties. For investments stated at their fair value, fair values are based on quoted market
prices. No investments are reported at amortized costs. Adjustments necessary to record investments at fair value
are recorded in the statement of revenues, expenses and changes in net assets as increases or decreases in
investment income.
For all deposits shown, the market value at the balance sheet date is substantially the same as the carrying value.
The difference between the bank balance and the carrying value is due to outstanding checks andior deposits in
transit.
NOTE 3 - SHORT-TERM NOTE PAYABLE
At June 30, 2011 the bank balance of cash was $7,083,583. The District maintains its cash accounts at several
financial institutions. Custodial credit risk for deposits is the risk that in the event of a bank failure, the District's
deposits may not be returned. The District does not have a deposit policy for custodial credit risk.
The District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its
general fund. Due to the timing of tax revenue receipts these notes are necessary for the District to meet its cash
flow needs throughout the year.
Deposits in each bank are insured by the FDIC in the amount of $250,000 for the combined amounts of all time
and savings accounts (including NOW accounts) up to $250,000, up to $250,000 for the combined amount of all
interest bearing demand deposit accounts, and unlimited coverage for noninterest-bearing demand deposit
accounts. Noninterest-bearing transaction accounts are defined to include the following:
Short-term debt activity for the year ended June 30, 2011, was as follows:
Beginning
Balance
Tax Anticipation Note
Traditional demand deposit or checking accounts that do not earn interest
Bank accounts are also insured by the State Deposit Guarantee Fund (Fund) (n the amount of $400,000.
However, due to the relatively small size of the Fund in relationship to the total deposits covered and other legal
implications, recovery of material principal losses may not be significant to individual districts. This coverage has
not been considered in computing the amount of uninsured deposits.
Issued
1,230,000
$
Total interest expense on short-term notes for the year totaled $10,888.
The following represents a summary of deposits as of June 30, 2011:
Fully Insured Deposits
$
Uninsured
472,091
6,611,492
Total
$
29
7,083,583
30
Redeemed
1,230,000
Ending
Balance
June 30,2011
June 30, 2011
NOTE 5 - LONG-TERM OBLIGATIONS
NOTE 4 - CAPITAL ASSETS
The fol[owing is a summary of changes in long-term obligations of the District for the year ended
June 30, 2011:
Capital asset balances and activity for the year ended June 30, 2011 were as follows:
Beginning
Balance
Increases
Decreases
Ending
Balance
Governmental Activities
Capital assets Not Being
Depreciated
Land
665,352
1,240,315
Construction In Progress
Total Capital Assets Not
Being Depreciated
665,352
1,240,315
1,240,315
665,352
1,905,667
Athletic Facilities
224,613
21,638,821
4,102,780
2,718,015
Total Capital Assets
Being Depreciated
28,684,229
Less Accumulated
Depreciation for
Land Improvements
Building improvements
Athletic Facilities
Total Accumulated
Depreciation
Total Capital Assets
Being Depreciated,
Net of Accumulated
Depreciation
Governmental Activities
Capital Assets, Net of
Accumulated
Depreciation
239,370
239,370
(114,305)
(114,305)
Within One
~-2,760,000
2,760,000
2,760,000
Capital Lease
1,802,575
1,802,575
86,987
125,000
539,904
84,837
125,613
499,128
Other Post-Employment
Benefits
2,890,926
1,283,861
391,815
3,782,972
Total Long-Term
Obligations
3,430,830
5,931,273
517,428
8,844,675
28,809,294
All general obligation debt is secured by the full faith and credit and unlimited taxing powers of the District. General
obligation deb! at June 30, 2011 is comprised of the following:
(14,818)
(331,739)
(270,710)
(60,424)
(10,294,181)
(677,691)
18,390,048
(438,321)
17,951,727
19,055,400
801,994
19,857,394
114,305
Ending
Balances
224,613
21,638,821
4,227,845
2,718,015
(93,766)
(6,711,730)
(2,853,891)
(634,794)
114,305
Reductions
Additions
Bond Anticipation Note
Capital Assets Being
Depreciated
Land lmprovements
Building Improvements
Amount Due
Beginning
Balances
(108,584)
(7,043,469)
(3,238,906)
(695,218)
(10,857,567)
2,971,987
Total interest accrued for the year ended June 30, 2011, was $38,047 for general obligation debt
General Obligation Debt
Bond Anticipation Note
Date of
Issuance
Date of
Maturity
fnterest Rate
04-112111
12/12/11
2,00%
Original
Indebtedness
2,760,000
Balance
6/30/11
2,760,000
The 2010 equalized valuation of the District as certified by the Wisconsin Department of Revenue is
$838,923,323. The legal debt limit and margin of indebtedness as of June 30, 2011, in accordance with Section
67.03(1)(b) of the Wisconsin Statutes follows:
Debt Limit (10% of $838,923,323)
Deduct long-term debt applicable to debt margin
$
83,923,323
2,760,000
Margin of Indebtedness
$
81,132,332
Aggregate cash flow requirements for the retirement of long-term principal and interest as of June 30, 2011, follows:
Depreciation expense for fiscal year ended June 30,2011 amounted to $677,691 and was charged to the support
service as unallocated depreciation.
Year Ended
June 30
2012
2013
2014
2015
2016
2017-2021
2022 -2026
Total
Principal
$
Interest
2,846,987
76,618
84,362
92,563
101,247
655,081
705,717
$
124,052
62,266
59,383
56,213
52,737
199,550
58,668
4,562,575
$
612,868
Total
2,971,038
138,884
143,745
148,776
153,984
854,631
764,385
$
5,175,443
Prior Year Defeased Debt
In prior years, t[1e District defeased certain general obligation and other bonds. As a result, the bonds are
considered to be defeased and the [iability has been removed from the statement of net assets. At June 30, 2011,
$2.16 mi[lion of bonds issues are considered defeased,
31
32
June 30, 2011
June 30, 2011
NOTE 7 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (Continued)
NOTE 6 - DEFINED BENEFIT PENSION PLAN
All eligible District employees participate in the Wisconsin Retirement System (WRS), a cost-sharing, multipleemployer, defined benefit, public employee retirement system. All permanent employees expected to work at least
600 hours a year (440 hours for teachers and education support staff) are eligible to participate in the WRS.
Covered employees in the General/Teacher/Educational Support Personnel category are required by statute to
contribute 5.9% of their salary (2.8% for executives and elected officials, 4.9% for protective occupations with
social security, and 3.3% for protective occupations without social security) to the plan. Employers may make
these contributions to the plan on behalf of employees. Employers are required to contribute an actuarially
determined amount necessary to fund the remaining projected cost of future benefits.
The payroll for District employees covered by the WRS for the year ended June 30, 2011 was $8,359,706; the
employer's total payroll was $10,787,530. The total required contribution for the year ended June 30,2011 was
$951,683, which consisted of $400,915, or 4.8% of payroll from the employer and $517,849, or 6.2% of payroll
from employees. Total contributions for the years ended June 30,2010 and 2009 were $897,749 and $814,335,
respectively, equal to the required contributions for each year.
Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation employees with
less than 25 years of service, 53 for protective occupation employees with more than 25 years of service) are
entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees)
and receive actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, (2)
years of creditable service, and (3) a formula factor. Final average earnings are the average of the employee's
three highest years' earnings. Employees terminating covered employment and submitting application before
becoming eligible for a retirement benefit may withdraw their contributions and, by doing so, forfeit all rights to any
subsequent benefit. For employees beginning participation on or after January 1, 1990, and no longer actively
employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement
annuity. Participants employed prior to 1990 and on or after April 24, 1998, are immediately vested.
The WRS also provides death and disability benefits for employees. Eligibility and the amount of all benefits are
determined under Chapter 40 of Wisconsin Statutes. The WRS issues an annual financial report that may be
obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707-7931.
NOTE 7 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description. The Luxemburg-Casco School District operates a single-employer retiree benefit plan that provides
post-employment health and life insurance benefits to eligible employees and their spouses as well as a stipend.
There are 151 active and 19 retired members in the plan. Benefits and eligibility for teachers and food service
workers are established and amended through collective bargaining with the recognized bargaining agent for each
group; and include post-employment health and dental coverage. The benefit requires the District to pay 90% of the
premiums for a maximum of five years or until the employee becomes Medicare eligible. Benefits and eligibility for
administrators, secretaries and general support staff are established and amended by the governing body. The
benefit is for five years and the District pays 100% of the premiums.
Funding Policy. The District has $1,140,480 of invested plan assets accumulated for payment of future benefits.
The employer makes all contributions and for the year ended June 30, 2011, the District contributed $361,815 to
thetrus!.
33
Annual OPEB Cost and Net OPEB Obligation. The District's annual other post-employment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in
accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid
on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities
over a period of thirty years. The following table shows the components of the District's annual OPEB cost for the
year, the amount actually contributed to the plan, and changes in the District's net OPEB obligation.
Government
Activities
-$---1,168,224
115,637
1,283,861
391,815
892,046
2,890,926
$
3,782,972
Annual required contributions
Interest on net OPEB
Annual OPEB cost (expense)
Contributions made
Change in net OPES obligations
OPEB obligation at beginning of year
OPEB obligation at end of year
The District's annual OPES cost, the percentage of the annual OPES cost contributed to the plan, and the net
OPES obligations for fiscal year 2011 and the preceding year were as follows:
Fiscal
Year
Ended
Annual OPES
Cost
Percentage of
Annual OPES
Cost Contributed
6/30/09
6/30110
6/30111
$ 1,318,243
$ 1,247,684
$ 1,283,861
52.0%
27.5%
30.5%
Net OPEB
Obligation
$ 1,986,500
$ 2,890,926
$ 3,782,972
Funded Status and Funding Progress. As of July 1, 2008, the most recent actuarial valuation date, for the period
,July 1, 2008 through June 30, 2009, the District's unfunded actuarial accrued liability (UAAL) was $8,177,606. The
annual payroll for active employees covered by the plan in the actuarial valuation for the 2008 - 2009 fiscal year
was $7,566,555 for a ratio of the UAAL to covered payroll of 108.1 %.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future, such as assumptions about future terminations, mortality,
and health care cost trends. Actuarially determined amounts are subject to continual revision as actuarial results
are compared with past experience and new estimates are made about the future. The schedule of funding
progress and the schedule of employer contributions, presented as required supplementary information following
the notes to the 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 or benefits.
The schedule of funding progress, presented as RSI following the notes to the financial statements, is to present
mUltiyear trend information about whether the actuarial value of Plan assets is increasing or decreasing over time
relative to the actuarial accrued liability for benefits,
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 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 effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
34
Notes to the Financia[ Statements
June 30, 2011
Notes to the Financia[ Statements
June 30,2011
NOTE 7 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (Continued)
In the July 1, 2008 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
assumption included a rate of 4% to discount expected [iabilities to the valuation date, which is based on the plan
being funded in an irrevocable employee benefit trust invested in a long-term fixed income portfolio. The initial
hea[thcare trend rate was 8.6% for medical, with rates decreasing to an ultimate rate of 6.1 % after 10 years.
Morta[ity, disability and retirement rates are from the Wisconsin Retirement System Experience Study for public
schools. The UAAL is being amortized as a level percentage of projected payrolls. The remaining amortization
period at June 30, 2011 was 30 years.
NOTE 8 - FUND EQUITY (Continued)
Committed
Fund Ba[ance
Individual Fund
.
2,610
Genera[ Fund
$
Community Service Fund
600
Genera[ fund balance is committed for contractual obligations.
Community service fund balance is committed for community service activities.
NOTE 8 - FUND EQUITY
District-Wide Statements
Assigned Fund
Balance
Individual Fund
Net asset reported on the district-wide statement of net assets at June 30, 2011 includes the foliowing:
Invested in Capital Assets, Net of Re[ated Debt
Net Capital Assets
Less: Re[ated Long-Term Debt Outstanding
Tota[ Invested in Capital Assets, Net of Re[ated Debt
$
19,857,394
(1,235,552)
18,621,842
$
Genera[ Fund
3,687,513
Genera[ fund balance is assigned for working capital to finance operating expenditures to minimize short-term
borrowing.
NOTE 9 - LIMITATION ON SCHOOL DISTRICT REVENUES
Restricted
Less: Unspent Debt Proceeds Re[ated to Capital Projects
Tota[ Restricted
3,434,632
(3,327,023)
107,609
Unrestricted (Deficit)
(629,524)
Tota[ Net Assets
$
18,099,927
Fund Statements
Wisconsin statutes limits the amount of revenues school districts may derive from general school aids and
property taxes unless a higher amount has been approved by a referendum. This [imitation does not apply to
revenues needed for the payment of any general obligation debt service (inc[uding refinanced debt) authorized by
either of the following:
• A resolution of the school board or by a referendum prior to August 12, 1993.
• A referendum on or after August 12,1993.
[n the fund financial statements, portions of governmental fund balances are restricted and not availab[e for
appropriation or are [egally restricted for use for a specific purpose. At June 30, 2011, fund balance was restricted
as follows:
Restricted Fund
Balance
Individual Fund
Capital Projects Fund
Special Revenue
Debt Service Fund
Food Service Fund
NOTE 10 - CONTINGENCIES
The District received federal and state grants for specific purposes that are subject to review and audit by the
grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures
disallowed under terms of the grants. The District believes such disallowances, if any, would be immaterial.
$
3,327,023
16,317
2,773
88,519
From time to time the District is involved in legal actions and claims, most of which normaliy occur in governmental
operations. [n the opinion of District management, these issues, and any other proceedings known to exist at June
30, 2011, are not likely to have a material adverse impact on the District's financial position.
$
3,434,632
NOTE 11 - COMM[TMENTS
Capital projects fund balance is restricted for capital improvements.
Special revenue fund balance is restricted for individual gifts and donations.
The District refinanced the $2,670,000 bond anticipation note into $2,675,000 general obligation refunding bonds
as of September 12, 2011.
Debt service fund balance is restricted for the payment of long-term debt principal, interest and related costs.
NOTE 12 - RISK MANAGEMENT
Food service fund balance is restricted for future food service expenditures.
The District is exposed to various risks of [ass related to torts; theft of, damage to, or destruction of assets; errors and
omissions; injuries to employees; employee health claims; unemployment compensation claims; and natural
disasters. The District insures through commercial insurance companies for all risks of [ass. Settled claims from
these risks have not exceeded insurance coverage in the past two fiscal years.
35
36
Notes to the Required Supplementary Information
June 30, 2011
NOTE 13· UPCOMING ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and
Net Position, was issued by the GASS in June 2011 and will be effective for the School District's 2012·2013 fiscal
year. The statement incorporates deferred outflows of resources and deferred inflows of resources, as defined by
GASB Concepts Statement No.4, into the definitions of the required components of the residual measure of net
position, formerly net assets. This statement also provides a new statement of net position format to report all assets,
deferred outflows of resources, liabilities, deferred inflows of resources, and net position. Once implemented, this
statement will impact the format and reporting at the district·wide and fund level.
37
REQUIRED SUPPLEMENTARY INFORMATION
Required Supplementary Information
Other Post-Employment Benefits
As of June 30, 2011
.I
Schedule of Revenues, Expendltures and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended June 30,2011
Schedule of Funding Progress
Budgeted Amounts
Actual
Amounts
(Budgetary
Actuarial
Valuation
Date
7/1/2008
Actuarial
Value of
Assets
(a)
518,840
$
Actuarial
Accrued
Liability
(AAL)
(b)
$ 8,696,446
Unfunded
AAL
(UAAL)
(b-a)
$ 8,177,606
Funded
Ratio
(alb)
5.97%
Covered
Payroll
(c)
$ 7,566,555
UAAL as a
Percentage
of Covered
Payroll
«b-a)/c)
108.1%
Original
REVENUES
Property Taxes
Other Local Sources
Interdistrict Sources
State Sources
Federal Sources
Other Sources
Schedule of Employer Contributions
Total Revenues
Year
Ended
June 30
2009
2010
2011
Annual
Required
Contribution
$ 1,168,224
$ 1,168,224
$ 1,168,224
Final
Basis)
Variance with
Final Budget
Favorable
(Unfavorable)
6,741,345
138,927
219,000
1,000
11,650,728
303,202
22,000
19,076,202
6,741,345
138,927
219,000
1,000
11,650,728
303,202
22,000
19,076,202
6,742,524
100,614
240,681
2,163
11,642,621
662,864
19,486
19,410,953
8,236,947
723,954
598,272
351,420
9,910,593
8,357,508
730,832
630,131
321,332
10,039,803
8,357,483
730,832
629,952
327,315
10,045,582
415,580
641,822
287,471
976,975
358,279
1,952,592
1,039,709
656,554
162,103
25,000
461,313
6,977,398
369,688
684,665
508,926
976,975
552,110
1,735,419
1,047,889
687,883
153,290
10,888
152,565
6,880,298
369,688
684,932
508,926
960,844
552,080
1,738,743
1,047,889
687,883
153,290
10,888
152,565
6,867,728
244,757
87,730
264,231
98,462
238
362,931
264,231
98,462
238
362,931
17,283,032
17,276,241
6,791
1,855,724
1,793,170
2,134,712
341,542
5,000
(1,943,925)
(1,938,925)
5,000
(1,884,232)
(1,879,232)
3,447
(1,594,602)
(1,591,155)
(1,553)
289,630
288,077
1,179
(38,313)
21,681
1,163
(8,107)
359,662
(2,514)
334,751
EXPENDITURES
Percentage
Contributed
58.6%
29.4%
33.5%
Instruction
Regular Instruction
Vocational Instruction
Other Instruction
Total Instruction
Support. Services
Pupil Services
Building Administration Services
Business Administration Services
Centra! Services
Insurance
Principal and interest
25
179
(5,983)
(5,779)
(267)
16,131
30
(3,324)
12,570
Non~Program Transactions
Open Enrollment
Non-Open Enrollment
Total Non-Program Transactions
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Sale of Non-Capital Assets
Transfer to Special EdUcation Fund
Total Other Financing Sources (Uses)
17,220,4~_
(83,201)
(86,062)
543,557
FUND BALANCE - BEGINNING OF YEAR
3,146,566
3,146,566
3,146,566
FUND BALANCE - END OF YEAR
3,063,365
3,060,504
3,690,123
NET CHANGE IN FUND BALANCE
38
332,487
_
Total Expenditures
See Accompanying Notes to Required Supplementary Information
39
629,619
629,619
Notes to the Required Supplementary Information
June 30, 2011
Notes to Required Supplementary Information (Continued)
June 30, 2011
BUDGETS AND BUDGETARY ACCOUNTING
BUDGET-TO-ACTUAL RECONCILIATION
Operating budgets are adopted each fiscal year for all
Wisconsin Statutes using the budgetary accounting
Instruction. The legally adopted budget and budgetary
level in the general fund and at the function level for
adopted or as amended by School Board resolution.
governmental funds in accordance with Section 65.90 of the
basis prescribed by the Wisconsin Department of Public
expenditure control is exercised at the two-digit subfunction
all other funds. Reported budget amounts are as originally
The District follows these procedures in establishing the budgetary data:
An explanation of the differences between budgetary inflows and outflows and revenues and expenditures
determined in accordance with generally accepted accounting principles follows:
Sources/Inflows of Resources
a.
Based upon requests from district staff, district administration recommends budget proposals to the school
board.
Actual Amounts (Budgetary Basis) "Total Revenues" from the Budgetary
Comparison Schedule
b.
The school board prepares a proposed budget including proposed expenditures and the means of
financing them for the July 1 through June 30 fiscal year.
Differences - Budget to GAAP
c.
Pursuant to a public budget hearing, the school board may make alterations to the proposed budget.
d.
Once the school board (following the public hearing) adopts the budget, no changes may be made in the
amount of tax to be levied or in the amount of the various appropriations and the purposes of such
appropriations, unless authorized by a 2/3 vote of the entire school board.
The Special Education Fund was Budgeted Separately but does not
Meet the Definition of a Special Revenue Fund and was Combined with
the General Fund
BASIS OF ACCOUNTING
Total Revenues and Other Financing Sources as Reported on the Statement of
Revenues, Expenditures, and Change in Fund Balances - Governmental Funds
$
19,414,400
1,467,424
$
20,881,824
$
18,870,843
Uses/Outflows of Resources
The budget is prepared on the Same modified accrual basis of accounting as applied to the governmental funds in
the basic financial statements. However, there is a perspective difference, in that, the special education fund is
combined with the general fund in the financial statements.
Actual Amounts (Budgetary Basis) "Total Expenditures and Other
Financing Uses" from the Budgetary Comparison Schedule
Differences - Budget to GAAP
EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUNDS
The following funds had an excess of actual expenditures over budget for the year ended June 30, 2011:
Excess
Expenditures
Individual Fund
General Fund
Other Instruction
Instructional Staff Service
$
40
5,983
267
3,324
The Special Education Fund was Budgeted Separately but does not
Meet the Definition of a Special Revenue Fund and was Combined with
the General Fund
The Transfer to the Special Education Fund is Eliminated because it is
Considered to be all Part of the General Fund
Total Expenditures as Reported on the Statement of Revenues,
Expenditures, and Changes in Fund Balances - Governmental Funds
41
3,062,026
~1,594,602)
$
20,338,267
SUPPLEMENTARY INFORMATION
Combining Balance Sheet
Nonmajor Governmental Funds
As of June 30, 2011
Special
ASSETS
Accounts Receivable
Due from Federal
Total Assets
FUND BALANCES
Restricted
Committed
Total Fund Balances
$
16,317
$
2,773
$
16,317
$
2,773
$
16,317
$
2,773
$
42
16,317
Food
Service
Debt
Service
Revenue
$
2,773
$
Community
Service
Total
$
500
$
$
82,522
46
5,951
88,519
$
500
$
102,112
46
5,951
108,109
$
88,519
$
$
107,609
500
108,109
$
88,519
$
500
500
43
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Special
Revenue
REVENUES
Property Taxes
Other Local Sources
State Sources
Federal Sources
Total Revenues
$
TEACH
$
Food
- -Service
---$
$
12,214
830
12,214
830
Community
Service
277,524
552,211
10,192
252,380
814,783
Total
$
277,524
277,524
565,255
10,192
252,380
1,105,351
308,276
308,276
1,000
1,259
15,194
815,656
308,276
1,141,385
[
EXPENDITURES
Support Services
Other Instruction
Central Services
Community Services
2,259
15,194
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
9,955
(15,194)
FUND BALANCES - BEGINNING OF YEAR
6,362
15,194
FUND BALANCES - END OF YEAR
Debt
Service
1,000
1,259
,.
15,194
815,656
$
16,317
(
830
1,943
$
2,773
I
I
I
I
815,656
(30,752)
(36,034)
89,392
31,252
144,143
88,519
500
(873)
$
$
108,109
(
I
I
I
44
45
Schedule of Changes in Assets and Liabilities
Pupil Activity Fun d
Balance
7/1/2010
ASSETS
Cash
LIABILITIES
Due to Student Organizations
Elementary School
Middle School
High School
TOTAL LIABILITIES
Additions
$
167,994
$
25,228
29,210
113,556
167,994
$
$
Balance
6/30/2011
Deductions
583,348
$
567,098
$
184,244
103,024
56,948
423,376
583,348
$
87,202
53,731
426,165
567,098
$
41,050
32,427
110,767
184,244
$
ADDITIONAL REPORTS
I
I
I
I
46
115 E, Fifth Street· Shawano, WI 54166
(715) 526-9400 • Fax (715) 524-2599
Compliance and other Matters
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
As part of obtaining reasonable assurance about whether the District's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, cont~acts and
grants agreements, noncompliance with which could have a direct and material effect on the determ1l1atlon of
financial statement amounts, However, providing an opinion on compliance with those provIsions was not an
objective of our audit and, accordingly, we do not express such an opinion, The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards,
We noted certain matters that we reported to the management of Luxemburg-Casco School District in a separate
letter dated December 5, 2011,
Board of Ed ucation
The District's responses to the findings identified in our audit are described in the accompanying schedule of
findings, We did not audit the District's responses and accordingly, we express no opinion on it.
We have audited the accompanying financial statements of the governmental activities, each major fund and the
aggregate remaining fund information of Luxemburg-Casco School District (District), as of and for the year ended
June 30, 2011, which collectively comprise the District's basic financial statements and have issued our report
thereon dated December 5, 2011, 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,
This report is intended solely for the information and use of the School Board, management, awarding agencies,
pass-through entities and the Wisconsin Department of Public Instruction and is not intended to be, and should not
be, used by anyone other than these specified parties,
..""1~~;i~.!a-~
RBE ,ROSE & ASSOCIATES, S,C.
ertlfled Public Accountants
December 5, 2011
Internal Control Over Financial Reporting
.
In planning and performing our audit, we considered the District's internal control over financial reporting as a basis
for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the District's internal control over financial reporting,
Accordingly, we do not express an opinion on the effectiveness of the District's internal control over financial
reporting,
Our consideration of the internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that
mig ht be significant deficiencies, or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have been identified,
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of perfonming their assigned functions, to prevent, or detect and correct
misstatements on a timely basis, A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the District's financial statements will
not be prevented, or detected and corrected on a timely basis, We did not identify any deficiencies to be material
weaknesses,
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance, We consider the
deficiencies described in the accompanying schedule of findings as #11-1 and #11-2 to be significant deficiencies,
47
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48
115 E. Fifth Street· Shawano, WI 54166
(715) 526-9400 • Fax (715) 524-2599
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD
HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND
STATE SINGLE AUDIT GUIDELINES
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal or state program
on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or
detected and ocrrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.
Compliance
We have audited Luxemburg-Casco School District's (District) compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement and the State Single Audit Guidelines
that could have a direct and material effect on each of the District's major federal and state programs for the year
ended June 30, 2011. The District's major federal and state programs are identified in the summary of auditors'
results section of the accompanying schedule of findings. Compliance with the requirements of laws, regulations,
contracts and grants applicable to each of its major federal and state programs is the responsibility of the District's
management. Our responsibility is to express an opinion on the District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations; and State Single Audit Guidelines. Those standards, OMB Circular
A-133, and the Guidelines require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal or state program occurred. An audit includes examining, on a test basis,
evidence about the District's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the District's compliance with those requirements.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those charged with
governance. We consider the deficiencies in internal control over compliance described in the accompanying
schedule of findings as items #11-1 and #11-3 to be significant deficiencies.
The District's responses to the findings identified in our audit are described in the accompanying schedule of
findings and the corrective action plan. We did not audit the District's responses and, accordingly, we express no
opinion on the responses.
This report is intended solely for the information and use of the School Board, management, awarding agencies,
pass-through entities and the Wisconsin Department of Public Instruction and is not intended to be, and should not
be, used by anyone other than these specified parties.
~~.£~~
C1.:,~
ERBE ,ROSE & ASSOCIATES, S.C.
ertified Public Accountants
December 5, 2011
In our opinion, Luxemburg-Casco School District complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal and state programs for the
year ended June 30, 2011. However, the results of our auditing procedures disclosed an Instance of noncompliance
with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which is
described in the accompanying schedule of findings and questioned costs as item #11-3.
Internal Control Over Compliance
Management of the District is responsible for establishing and maintaining effective internal control over
compliance with requirements of laws, regulations, contracts and grants, applicable to federal and state programs.
In planning and performing our audit, we considered the District's internal control over compliance with the
requirements that could have a direct and material effect on a major federal or state program to determine the
auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal
control over compliance in accordance with OMB Circular A-133 and the Guidelines, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the District's internal control compliance.
49
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50
FEDERAL AND STATE AWARDS SECTION
Schedule of Expenditures of Federal Awards
Awarding Agency!
Award Description!
Pass-Throu9h Agenct
Catalog
Through
Program
or Award
Number
Number
Amount
10.555
714-001
NIA
10.555
717-547
NIA
Pass-
Accrued Receivable
Grantor
711110
Reimbursements
Accrued Receivable
EXEenditures
6130111
U.S. DEPARTMENT OF AGRICULTURE
CHILD NUTRITION CLUSTER
WIsconsin Department of Public Instruction
Non-Cash Assistance (Commodities)
National School Lunch Program
July 1, 2010-June 30, 2011
Cash Assistance:
National School Lunch Program
July 1, 2010-June 30, 2011
63,425
63,425
188,955
5,951
246,429
252,380
5,951
128,470
90,123
125,884
35,761
77,925
168,048
80,839
206,723
2,914
----38,675
345,402
182,487
183,004
TOTAL U.S. DEPARTMENT OF AGRICULTURE
___
U.S. DEPARTMENT OF EDUCATION
TITLE I, PART A CLUSTER
Wisconsin Department of Public Instruction
Title I Grants to Local Educational Agencies
July 1, 2010-June 30, 2011
ARRA-Title 1Grants to Loca! Educational Agencies
July 1, 201 O·June 30, 2011
Tota! Title I, Part A Cluster
84.010
751-141
84.389
751-816
84,202
84.027
730-341
393,748
350,923
204,240
204,240
162,915
84.027
711-000
NIA
1,027
1,027
SPECIAL EDUCA T/ON CLUSTER
IDEA Flow Through
July 1, 200g·June 30, 2010
July 1, 201 O-June 30, 2011
High Cost Special Education Aid
July 1, 2009·June 30, 2010
IDEA Coordinated Early Intervention Services (CEIS)
July 1, 2010-June 30, 2011
IDEA Preschool Entitlement Project
July 1, 2009-June 30, 2010
July 1, 2010-June 30, 2011
ARRA - IDEA Flow Through Entitlement
July 1, 2010·June 30, 2011
ARM· IDEA Preschool Entitlement Project
July 1, 2010-June 30, 2011
Total Special Education Cluster
84.027
730-341
46,035
84.173
730-347
14,741
14,280
84.391
730-813
406,090
84.392
730-813
19,200
3,279
- - - - - 208,546
27,025
27,025
3,279
7,034
12,001
292
292
19,200
425,012
19,200
403,920
4,967
187,454
TITLE II-D EDUCATION TECHNOLOGY COMPETITIVE PROJECT
July 1, 2010-June 30, 2011
84.318
730-328
2,875
2,875
2,875
84,365
NIA
2,163
1,738
2,163
425
84.367
730-365
59,476
54,001
18,292
32,858
53,041
20,183
208,665
373,200
ENGLISH LANGUAGE ACQUISITION GRANTS
CESA#7
July 1, 2010·June 30,2011
IMPROVING TEACHER QUALITY GRANT
July 1, 2009~June 30, 2010
July 1, 2010-June 30, 2011
18,292
ARRA - EDUCA TlON JOBS FUND
Wisconsin Department of Administration
July 1, 2010-June 30, 2011
84.410
NIA
373,200
164,535
-------
TOTAL U.S. DEPARTMENT OF EDUCATION
_ _ _ _ 226,838
857,488
1,041,922
U.S. DEPARTMENT OF HEALTH AND FAMILY SERVICES
---~
MEDICAID SCHOOL BASED SERVICES
Passed through Wisconsin Department
of Health Services
July 1, 201 O·June 30, 2011
TOTAL FEDERAL ASSISTANCE
The accompanying notes are an integral part of this schedu!e.
51
93.778
Unknown
NIA
_ _ _ _ 186,675
226,838
1,290,592
--~
1,507,458
26,481
443,704
The accompanying notes are an integra! part of this schedule.
52
Schedule of State Financial Assistance
Awarding Agencyl
Awarding Descriptionl
State
1.0.
Accrued Receivable
Pass-Through Agency
Number
7/01/10
State
Reimbursements
Accrued
Receivable
6/30/2011
Expenditures
WI DEPARTMENT OF PUBLIC INSTRUCTION
ENTITLEMENT PROGRAMS
MAJOR STATE PROGRAMS
Handicapped Pupils and
School Age Parents:
Internal District Program - DPI
Brown County Handicapped Children's Education Board
CESA#7
CESA#8
General Equalization - DPI
255.101
255.101
255.101
255.101
255.201
TOTAL MAJOR PROGRAMS
NONMAJOR STATE PROGRAMS
State Lunch - DPI
Library Aid - DPI
Pupil Transportation - DPI
Supplemental Special Education Aid - DPI
Mentoring Grants for Initial Educators - DPI
Local Youth Apprenticeship Grant - other LEA
Aids in Lieu of Taxes - WI Department of Natural Resources
Exempt Computer State Aid - WI Department of Revenue
197,804
197,804
12,168,080
12,170,058
255.102
255.103
255.107
255.211
255.355
445.112
N/A
N/A
3,602
10,192
83,918
118,195
97,632
2,250
1,110
7,193
3,602
10,192
83,918
118,195
97,632
2,250
1,110
7,193
6,078
6,078
324,092
326,568
6,078
3,602
TOTAL NONMAJOR PROGRAMS
$
TOTAL STATE ASSISTANCE
201,406
$
12,492,172
$
$
671,836
27,076
25,920
21,349
11,423,877
$
671,836
27,076
18,901
21,349
11,428,918
$
12,496,626
7,019
192,763
199,782
205,860
$
The accompanying notes are an integral part of this schedule.
The accompanying notes are an integral part of this schedule.
53
54
Schedule of Findings
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
Section I - Summary of Auditors' Results
NOTE 1 - BASIS OF PRESENTATION
Financial Statements
The accompanying schedules of expenditures of federal awards and state financial assistance include the federal
and state grant activity of Luxemburg-Casco School District and are presented on the modified accrual basis of
accounting. The information in these schedules is presented in accordance with the requirements of OMS
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the Wisconsin Department of
Instruction, the Wisconsin Public School District Audit Manual and the State Single Audit Guidelines. Therefore,
some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of,
the basic financial statements.
NOTE 2 - SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM
2010 -. 2011 eligible costs under the State Special Education Program are $2,369,760.
Type of auditors' report issued:
Unqualified
Internal control over financial reporting:
Material weaknesses identified?
Significant deficiencies identified?
No
Yes
Noncompliance material to the financial statements?
No
Federal Awards
Internal control over major programs:
No
Yes
Unqualified
NOTE 3 - OVERSIGHT AGENCIES
Type of auditors' report issued on compliance for major programs:
The District's federal oversight agency is the U.S. Department of Education. The District's state cognizant agency is
the Wisconsin Department of Public Instruction.
Any audit findings disclosed that are required to be reported in accordance
with Section 510(a) of OMS Circular A-133(a)?
Yes
Identification of major federal programs:
_ _ _ _ _ _ _ _-"C"F-=D"A'-'-'N"u"'m",b"'e"'r_ _ _ _ _ _ _ _ _ _ _ _ _ _ Name of Federal '-P.::ro"'9"'rc:a"'m-'---_ _ _ __
84.410
93.778
Special Education Cluster
84.027
84.173
84.391
84.392
ARRA - Education Jobs Fund
Medicaid School Based Services
IDEA Flow-Through
IDEA Preschool Entitlement Project
ARRA - IDEA Flow-Through
ARRA-IDEA Preschool Entitlement Project
$300,000
Dollar threshold used to distinguish between Type A and Type B Programs
Yes
Auditee qualified as a low-risk auditee?
State Awards
Internal control over major programs:
No
Yes
Unqualified
Type of auditors' report issued on compliance for major programs:
Any audit findings disclosed that are required in accordance with the Wisconsin Public
School District Audit Manual
No
Identification of major state programs
55
State I.D. Number
Name of State Program
255.101
255.201
Handicapped Pupils and School Age Parents
General Equalization
56
Schedule of Findings· Continued
Schedule of Findings· Continued
Section II • Financial Statement Findings
Section 111- Federal Award Findings
#11·1 Lack of Segregation of Duties
Financial statement finding #11·1 is also cited as a federal award finding.
Condition:
During our audit, we noted that several of the accounting functions are pertormed
by a few individuals. Specifically this lack of segregation of duties exists in the
areas of cash receipts and payroll.
Cause:
Limited staff is available to properly segregate duties.
Criteria:
Board of Education and management are responsible for establishing and
maintaining intemal controls over financial reporting to prevent misstatements in
their financial reporting.
Effect:
Because of the lack of segregation of duties, unauthorized transactions or
misstatements as a result of errors could occur.
Recommendation:
We recognize that the District is not large enough to make the employment of
additional persons for the purpose of segregation of duties practical from a
financial standpoint. Therefore, the Board of Education should rely on their direct
knowledge of the District's operations and thoroughly review financial reports to
control and safeguard assets and insure accurate financial reporting.
Management's Response:
The District is aware of the lack of segregation of duties caused by the limited
size of its staff and therefore, agrees with this policy. The District will continue to
improve the segregation of duties wl1erever possible and will continue to have the
Board of Education's involvement in the review and approval process as much as
is practical.
#11·2 Financial Reporting
Condition:
During our audit, we noted that the internal control system does not include a
process for preparing the external annual audited financial statements and the
related disclosures in accordance with GAAP.
Cause:
Management requested that Kerber, Rose & Associates, S.C. assist in
preparing a draft of the audited financial statements, including the related
footnote disclosures. The outsourcing is a result of management's cost/benefit
decision to use our accounting expertise rather than incurring this intemal
resource cost.
Criteria:
Management is responsible for establishing and maintaining internal controls
and for the fair presentation of the financial position, change in net assets, and
disclosures in the financial statements, in conformity with U.S. Generally
Accepted Accounting Principles (GAAP).
Effect:
Although the auditors are preparing the financial statements and the related
footnotes, management of the District thoroughly reviews them and accepts
responsibility for their completeness and accuracy.
Recommendation:
We recommend that management continue to make this decision on a
cost/benefit.
Management's Response:
Management feels as though they could prepare the financial statements, but
will continue to have Kerber, Rose & Associates preparing a draft of the audited
financial statements and related footnotes due to time constraints.
57
#11·3 Allowable Costs - Time and Effort Reporting
Programs Affected:
Special Education Cluster (84.02?, 84.173 and 84.391)
Criteria:
OMB Circular A·8?, Attachment B, Part 8, Section H requires that wages and related
benefit costs, whether treated as direct or indirect costs, will be supported by periodic
certifications that the employees worked on the program(s) for the period of time
covered by the certification. These certifications should cover the preceding time period
and be signed within a reasonable time period after the fact.
Condition:
The District lacks the required time and effort certification documentation to
su bstantiate the wages and related benefit costs reported as expenditures under the
affected programs.
Cause:
The District was not aware of the requirement and therefore, certifications were not
prepared by the staff.
Effect:
The District did not properly document the costs in accordance with OMB Circular A·8?
Recommendation:
The District should establish a policy and implement procedures to ensure wages and
related benefit costs charged to grants be supported by the required certifications.
These payroll certifications should be completed and signed within a reasonable time
period and be signed after the fact.
Management's
Response:
The District accepts this finding and Is currently working to establish a policy and
irnplement procedures to ensure that in the future, wages and related benefit costs are
well supported by payroll certifications.
I
(
Section IV - State Award Findings
Financial Statement findings #11·1 is also cited as a state award finding.
58
Summary Schedule of Prior Audit Findings
For the Year Ended June 3D, 2011
FINANCIAL STATEMENT FINDINGS
#10-1 - Lack of Segregation of Duties - See corrective action plan finding #11-1.
.1
Corrective Action Plan
For the Year Ended June 30,2011
#11-1 - Lack of Segregation of Duties - The District is aware of the lack of segregation of duties caused by the
limited size of its staff. Segregation of duties in enhanced whenever possible and the Board of Education
assumes an active roll through monthly review of receipt and disbursement transactions and monthly financial
statements.
#10-2 - Financial Reporting - See corrective action plan finding #11-2.
#11-2 - Financial Reporting - Management feels as though they could prepare the financial statements, but will
continue to have Kerber, Rose & Associates preparing a draft of the audited financial statements and related
footnotes due to time constraints.
FEDERAL AND STATE AWARD FINDING
#10-3 - Preparation of Schedules of Federal and State Awards - The District did not provide us with the
schedule of federal awards with the appropriate allocation of funds by CFDA number and funding source. The
District felt that they did not have the resources to devote to prepare the schedule. The District requested their
auditors to prepare the schedule. Because your auditors do not have the in-depth knowledge of your District's
general ledger detail, it is possible that a grant award could be missed or reported in error.
#11-3 - Allowable Costs - Time and Effort Reporting - The District is aware ofthis issue and has responded by
assigning and individual to establish a policy and implement procedures to ensure that in the future, wage and related
benefit costs are well supported by payroll certifications.
Status 6130/11
This finding has been corrected. Management provided an accurate and complete schedule of Federal
Awards to the auditors.
59
60
APPENDIX B
FORM OF CONTINUING DISCLOSURE CERTIFICATE
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the Luxemburg-Casco School District, Kewaunee and Brown Counties, Wisconsin
(the "Issuer") in connection with the issuance of $1,700,000 General Obligation Refunding
Bonds, dated November 15, 2012 (the "Securities"). The Securities are being issued pursuant to
a Resolution adopted by the Governing Body of the Issuer on October 29, 2012 (the
"Resolution") and delivered to _______________________ (the "Purchaser") on the date hereof.
Pursuant to the Resolution, the Issuer has covenanted and agreed to provide continuing
disclosure of certain financial information and operating data annually and timely notices of the
occurrence of certain events. In addition, the Issuer hereby specifically covenants and agrees as
follows:
Section 1(a). Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the holders of the Securities in order to
assist the Participating Underwriters within the meaning of the Rule (defined herein) in
complying with SEC Rule 15c2-12(b)(5). The Issuer is an obligated person with respect to less
than $10,000,000 in aggregate amount of outstanding municipal securities (including the
Securities). References in this Disclosure Certificate to holders of the Securities shall include the
beneficial owners of the Securities. This Disclosure Certificate constitutes the written
Undertaking required by the Rule.
Section 1(b). Filing Requirements. Any filing under this Disclosure Certificate must be
made solely by transmitting such filing to the MSRB (defined herein) through the Electronic
Municipal Market Access ("EMMA") System at www.emma.msrb.org in the format prescribed
by the MSRB. All documents provided to the MSRB shall be accompanied by the identifying
information prescribed by the MSRB.
Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, which are
currently prepared in accordance with generally accepted accounting principles (GAAP) for
governmental units as prescribed by the Governmental Accounting Standards Board (GASB) and
which the Issuer intends to continue to prepare in substantially the same form.
"Final Official Statement" means the Final Official Statement dated October 29, 2012
delivered in connection with the Securities, which is available from the MSRB.
"Fiscal Year" means the fiscal year of the Issuer.
"Governing Body" means the School Board of the Issuer or such other body as may
hereafter be the chief legislative body of the Issuer.
QB\18358066.1
"Issuer" means the Luxemburg-Casco School District, Wisconsin, which is the obligated
person with respect to the Securities.
"Issuer Contact" means the District Administrator of the Issuer who can be contacted at
318 North Main Street, Luxemburg, Wisconsin 54217, phone (920) 845-5982, fax (920) 8455984.
"Material Event" means any of the events listed in Section 5(a) of this Disclosure
Certificate.
"MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street,
Suite 600, Alexandria, Virginia 22314.
"Participating Underwriter" means any of the original underwriter(s) of the Securities
(including the Purchaser) required to comply with the Rule in connection with the offering of the
Securities.
"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities
Exchange Act of 1934, as the same may be amended from time to time, and official
interpretations thereof.
"SEC" means the Securities and Exchange Commission.
Section 3. Provision of Annual Report and Audited Financial Statements. The Issuer
shall, not later than 270 days after the end of the Fiscal Year, commencing with the year that
ended June 30, 2012, provide the MSRB with an Annual Report filed in accordance with Section
1(b) of this Disclosure Certificate and which is consistent with the requirements of Section 4 of
this Disclosure Certificate. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as
provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial
Statements of the Issuer may be submitted separately from the balance of the Annual Report.
Section 4. Content of Annual Report. The Issuer's Annual Report shall contain or
incorporate by reference financial information and operating data that is customarily prepared
and publicly available, to wit:
1.
2.
Audited Financial Statements and
Adopted Annual Budget.
Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities,
which are available to the public on the MSRB’s Internet website or filed with the SEC. The
Issuer shall clearly identify each such other document so incorporated by reference.
Section 5. Reporting of Material Events.
(a)
This Section 5 shall govern the giving of notices of the occurrence of any of the
following events with respect to the Securities:
-2QB\18358066.1
1.
Principal and interest payment delinquencies;
2.
Non-payment related defaults, if material;
3.
Unscheduled draws on debt service reserves reflecting financial
difficulties;
4.
Unscheduled draws on credit enhancements reflecting financial
difficulties;
5.
Substitution of credit or liquidity providers, or their failure to perform;
6.
Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the Securities, or other material events affecting
the tax status of the Securities;
7.
Modification to rights of holders of the Securities, if material;
8.
Securities calls, if material, and tender offers;
9.
Defeasances;
10.
Release, substitution or sale of property securing repayment of the
Securities, if material;
11.
Rating changes;
12.
Bankruptcy, insolvency, receivership or similar event of the Issuer;
13.
The consummation of a merger, consolidation, or acquisition involving the
Issuer or the sale of all or substantially all of the assets of the Issuer, other
than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if
material; and
14.
Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
For the purposes of the event identified in subsection (a)12. above, the event is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent
or similar officer for the Issuer in a proceeding under the U.S. Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the Issuer, or if such jurisdiction has
been assumed by leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the entry of an
-3QB\18358066.1
order confirming a plan of reorganization, arrangement or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of the assets or business of the
Issuer.
(b)
When a Material Event occurs, the Issuer shall, in a timely manner not in excess
of ten business days after the occurrence of the Material Event, file a notice of such occurrence
with the MSRB. Notwithstanding the foregoing, notice of Material Events described in
subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if
any) of the underlying event is given to holders of affected Securities pursuant to the Resolution.
(c)
Unless otherwise required by law, the Issuer shall submit the information in the
format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.
Section 6. Termination of Reporting Obligation. The Issuer’s obligations under the
Resolution and this Disclosure Certificate shall terminate upon the legal defeasance, prior
redemption or payment in full of all the Securities.
Section 7. Issuer Contact; Agent. Information may be obtained from the Issuer Contact.
Additionally, the Issuer may, from time to time, appoint or engage a dissemination agent to assist
it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolution
or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision of this Disclosure Certificate may be waived, if such amendment or waiver is
supported by an opinion of nationally recognized bond counsel to the effect that such amendment
or waiver would not, in and of itself, cause the undertakings to violate the Rule. The provisions
of this Disclosure Certificate constituting the Undertaking or any provision hereof, shall be null
and void in the event that the Issuer delivers to the MSRB an opinion of nationally recognized
bond counsel to the effect that those portions of the Rule which require this Disclosure
Certificate are invalid, have been repealed retroactively or otherwise do not apply to the
Securities. The provisions of this Disclosure Certificate constituting the Undertaking may be
amended without the consent of the holders of the Securities, but only upon the delivery by the
Issuer to the MSRB of the proposed amendment and an opinion of nationally recognized bond
counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the
compliance of this Disclosure Certificate and by the Issuer with the Rule.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Material
Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses
to include any information in any Annual Report or notice of occurrence of a Material Event in
addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have
no obligation under this Disclosure Certificate to update such information or include it in any
future Annual Report or notice of occurrence of a Material Event.
-4QB\18358066.1
Section 10. Default. (a) Except as described in the Final Official Statement, in the
previous five years, the Issuer has not failed to comply in all material respects with any previous
undertakings under the Rule to provide annual reports or notices of material events.
(b) In the event of a failure of the Issuer to comply with any provision of this Disclosure
Certificate any holder of the Securities may take such actions as may be necessary and
appropriate, including seeking mandate or specific performance by court order, to cause the
Issuer to comply with its obligations under the Resolution and this Disclosure Certificate. A
default under this Disclosure Certificate shall not be deemed an event of default with respect to
the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of
the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Participating Underwriters and holders from time to time of the Securities, and
shall create no rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Certificate in our official capacities
effective the 15th day of November, 2012.
Timothy Kinnard
District President
(SEAL)
David Delain
District Clerk
-5QB\18358066.1
APPEDIX C
FORM OF LEGAL OPINION
Quarles & Brady LLP
411 East Wisconsin Avenue
Milwaukee, WI 53202
November 15, 2012
Re:
Luxemburg-Casco School District, Wisconsin ("Issuer")
$1,700,000 General Obligation Refunding Bonds,
dated November 15, 2012 ("Bonds")
We have acted as bond counsel to the Issuer in connection with the issuance of the
Bonds. In such capacity, we have examined such law and such certified proceedings,
certifications, and other documents as we have deemed necessary to render this opinion.
Regarding questions of fact material to our opinion, we have relied on the certified
proceedings and other certifications of public officials and others furnished to us without
undertaking to verify the same by independent investigation.
The Bonds are numbered from R-1 and upward; bear interest at the rates set forth below;
and mature on March 1 of each year, in the years and principal amounts as follows:
Year
Principal Amount
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$120,000
115,000
115,000
120,000
120,000
125,000
130,000
135,000
135,000
140,000
145,000
150,000
150,000
Interest Rate
____%
____
____
____
____
____
____
____
____
____
____
____
____
Interest is payable semi-annually on March 1 and September 1 of each year commencing on
March 1, 2013.
The Bonds maturing on March 1, 2021 and thereafter are subject to redemption prior to
maturity, at the option of the Issuer, on March 1, 2020 or on any date thereafter. Said Bonds are
redeemable as a whole or in part, and if in part, from maturities selected by the Issuer and within
each maturity, by lot, at the principal amount thereof, plus accrued interest to the date of
redemption.
QB\18357992.1
[The Bonds maturing in the years ______, ______ and ______ are also subject to
mandatory redemption by lot as provided in the resolution authorizing the Bonds at the
redemption price of par plus accrued interest to the date of redemption and without premium.]
We further certify that we have examined a sample of the Bonds and find the same to be
in proper form.
Based upon and subject to the foregoing, it is our opinion under existing law that:
1. The Bonds have been duly authorized and executed by the Issuer and are valid and
binding general obligations of the Issuer.
2. All the taxable property in the territory of the Issuer is subject to the levy of ad
valorem taxes to pay principal of, and interest on, the Bonds, without limitation as to rate or
amount. The Issuer is required by law to include in its annual tax levy the principal and interest
coming due on the Bonds except to the extent that necessary funds have been irrevocably
deposited into the debt service fund account established for the payment of the principal of and
interest on the Bonds.
3. The interest on the Bonds is excludable for federal income tax purposes from the gross
income of the owners of the Bonds. The interest on the Bonds is not an item of tax preference
for purposes of the federal alternative minimum tax imposed by Section 55 of the Internal
Revenue Code of 1986, as amended (the "Code") on corporations (as that term is defined for
federal income tax purposes) and individuals. However, for purposes of computing the
alternative minimum tax imposed on corporations, the interest on the Bonds is included in
adjusted current earnings. The Code contains requirements that must be satisfied subsequent to
the issuance of the Bonds in order for interest on the Bonds to be or continue to be excludable
from gross income for federal income tax purposes. Failure to comply with certain of those
requirements could cause the interest on the Bonds to be included in gross income retroactively
to the date of issuance of the Bonds. The Issuer has agreed to comply with all of those
requirements. The opinion set forth in the first sentence of this paragraph is subject to the
condition that the Issuer comply with those requirements. We express no opinion regarding
other federal tax consequences arising with respect to the Bonds.
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or any other offering material relating to the Bonds. Further, we express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
The rights of the owners of the Bonds and the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights
and may be subject to the exercise of judicial discretion in accordance with general principles of
equity, whether considered at law or in equity.
QB\18357992.1
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
QUARLES & BRADY LLP
QB\18357992.1
APPENDIX D
OFFICIAL NOTICES OF SALE AND BID FORMS
FOR
LUXEMBURG-CASCO SCHOOL DISTRICT, WISCONSIN
$1,700,000* General Obligation Refunding Bonds
Sale Data:
Sale Date and Time:
Monday, October 29, 2012
9:30 a.m. Central Time
Place:
Robert W. Baird & Co.
Public Finance Department
777 East Wisconsin Avenue, 25th Floor
Milwaukee, Wisconsin 53202
Attention: Ms. Lori Jackson
Phone: (414) 298-7513
Fax: (414) 298-7354
Bids will be
via PARITY
accepted
electronically
OFFICIAL NOTICE OF SALE
$1,700,000*
KEWAUNEE AND BROWN COUNTIES, WISCONSIN
GENERAL OBLIGATION REFUNDING BONDS
DATED NOVEMBER 15, 2012
______________________________________________________________________________
NOTICE IS HEREBY GIVEN that bids will be received by the School Board,
Luxemburg-Casco School District, Kewaunee and Brown Counties, Wisconsin for the purchase
of all but no part of its Bonds electronically via PARITY (as described below) or at the offices of
the District's financial advisor, Robert W. Baird & Co. Incorporated ("Baird"), 777 East
Wisconsin Avenue, 25th Floor, Milwaukee, Wisconsin 53202, Attention: Lori Jackson until
9:30 a.m. (Central Time) on
October 29, 2012
at which time the bids will be publicly opened and read. Bids may be mailed or delivered to
Baird at the address set forth above, faxed to Baird at (414) 298-7354, or submitted
electronically via PARITY, as described below. Signed bids, without final price or coupons,
may be submitted to Baird prior to the time of sale. The bidder shall be responsible for
submitting to Baird the final bid price and coupons, by telephone (414) 765-3827 or fax (414)
298-7354 for inclusion in the submitted bid. Bids which are mailed or delivered should be
plainly marked "Bid for Luxemburg-Casco School District Bonds". Bids will only be considered
if the required good faith deposit has been received. A meeting of the School Board will be held
on said date for the purpose of taking action on such bids as may be received.
Dates and Maturities: The Bonds will be dated November 15, 2012 and will mature on
March 1 of each year, in the years and principal amounts as follows:
Year
2013
2014
2015
2016
2017
*
Principal Amount*
$120,000
115,000
115,000
120,000
120,000
Preliminary, subject to change. The District reserves the right, after bids are opened and
prior to the award, to increase or reduce the principal amount of the Bonds offered for sale.
Any such increase or reduction will be made in multiples of $5,000 in any maturity. In the
event the principal amount is increased or reduced, any premium offered or any discount
taken by the successful bidder will be increased or reduced by a percentage equal to the
percentage by which the principal amount of the Bonds is increased or reduced.
QB\18358415.1
Principal Amount*
Year
2018
2019
2020
2021
2022
2023
2024
2025
$125,000
130,000
135,000
135,000
140,000
145,000
150,000
150,000
Interest: Interest on the Bonds will be payable semi-annually on March 1 and
September 1 of each year, commencing on March 1, 2013 to the registered owners of the Bonds
appearing of record in the bond register as of the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month. Interest will be computed upon the
basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the
MSRB.
Optional Redemption: The Bonds maturing on March 1, 2021 and thereafter will be
subject to redemption prior to maturity, at the option of the District, on March 1, 2020 or on any
date thereafter. Said Bonds will be redeemable as a whole or in part, and if in part, from
maturities selected by the District and within each maturity, by lot, at the principal amount
thereof, plus accrued interest to the date of redemption.
Term Bonds at Bidder’s Option: Bids for the Bonds may contain a maturity schedule
providing for any combination of serial bonds and term bonds, subject to mandatory redemption,
so long as the amount of principal maturing or subject to mandatory redemption in each year
conforms to the maturity schedule set forth above.
Mandatory Redemption: Any term bonds specified shall be subject to mandatory sinking
fund redemption in part prior to their scheduled maturity dates on March 1 of certain years, as
more fully described in the Dates and Maturities section herein, at a price of par plus accrued
interest to the date of redemption.
Security and Purpose: The Bonds are general obligations of the District. The principal of
and interest on the Bonds will be payable from ad valorem taxes, which may be levied without
limitation as to rate or amount upon all of the taxable property located in the District. The Bonds
will be issued for the purpose of paying the cost of refunding certain outstanding obligations of
the District, to wit: Note Anticipation Notes, dated October 1, 2012.
Registration: The Bonds will be issued as fully-registered Bonds without coupons and,
when issued, will be registered only in the name of CEDE & CO., as nominee for The
Depository Trust Company, New York, New York ("DTC").
-2QB\18358415.1
DTC Book Entry Only System: UTILIZATION OF DTC IS REQUIRED. BIDS FOR
THE BONDS MAY NOT PROVIDE FOR THE BONDS TO BE ISSUED ON A NON-DTC
BASIS. DTC will act as securities depository of the Bonds. A single Bond certificate for each
maturity will be issued to DTC and immobilized in its custody. Individual purchases may be
made in book-entry form only pursuant to the rules and procedures established between DTC and
its participants, either in the denomination of $5,000 or any integral multiple thereof or in the
denomination of $100,000 or more as specified in the Bonds. Individual purchasers will not
receive certificates evidencing their ownership of the Bonds purchased. The successful bidder
shall be required to deposit the Bond certificates with DTC as a condition to delivery of the
Bonds. The District will make payments of principal and interest on the Bonds to DTC or its
nominee as registered owner of the Bonds in same-day funds. Transfer of those payments to
participants of DTC will be the responsibility of DTC; transfer of the payments to beneficial
owners by DTC participants will be the responsibility of such participants and other nominees of
beneficial owners all as required by DTC rules and procedures. No assurance can be given by
the District that DTC, its participants and other nominees of beneficial owners will make prompt
transfer of the payments as required by DTC rules and procedures. The District assumes no
liability for failures of DTC, its participants or other nominees to promptly transfer payments to
beneficial owners of the Bonds.
Depository: In the event that the securities depository relationship with DTC for the
Bonds is terminated and the District does not appoint a successor depository, the District will
prepare, authenticate and deliver, at its expense, fully-registered certificated Bonds in the
denomination of $5,000 or any integral multiple thereof in the aggregate principal amount of
Bonds of the same maturities and with the same interest rate or rates then outstanding to the
beneficial owners of the Bonds.
Fiscal Agent: The Bonds shall be distributed to the owners in fully-registered form by
the fiscal agent for the District (the "Fiscal Agent") in the denomination of $5,000 or any integral
multiple thereof. Such Fiscal Agent will be designated by the District at the time of the sale of
the Bonds. The Bonds shall be payable as to interest by check or draft of the Fiscal Agent
mailed to the registered owners whose names appear on the books of the Fiscal Agent at the
close of business on the fifteenth day of each calendar month next preceding each interest
payment date and as to principal by presentation of the Bonds at the office of the Fiscal Agent.
The District will pay all costs relating to the registration of the Bonds.
Designation as Qualified Tax-Exempt Obligations: The Bonds will be designated
"qualified tax-exempt obligations" pursuant to the provisions of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended. The District Clerk or other officer of the District charged
with the responsibility for issuing the Bonds, shall provide an appropriate certificate of the
District as of the date of delivery and payment for the Bonds confirming the "qualified" status.
Bid Specifications: Bids will be received on an interest rate basis in integral multiples of
One-Twentieth (1/20) or One-Eighth (1/8) of One Percent (1%). Any number of rates may be
bid but the difference between the highest and lowest rate bid shall not exceed Two Percent
(2.00%). All Bonds of the same maturity shall bear the same interest rate. No bid for less than
One Hundred and Twenty-Five One Hundredths Percent (100.25%) of the principal amount of
the Bonds ($1,704,250) nor more than One Hundred Two Percent (102%) of the principal
-3QB\18358415.1
amount of the Bonds ($1,734,000) plus accrued interest to the date of delivery will be
considered. The Bonds will be awarded to a responsible bidder whose proposal results in the
lowest true interest cost to the District.
The underwriter shall be responsible for paying all costs of issuance on behalf of the
District. These costs include the financial advisor fee, attorney fees, rating agency fee,
fiscal agency fees and the fees for preparing and printing the Preliminary and Final
Official Statement and other miscellaneous expenses of the District incurred in connection
with the offering and delivery of the Bonds. The total of these costs is $30,275.
Type of Bid – Amount: Bids must be submitted either: (1) to Robert W. Baird & Co.
Incorporated as set forth herein; or (2) electronically via PARITY, in accordance with this
Official Notice of Sale, within a one hour period prior to the time of sale, but no bids will be
received after the time established above for the opening of bids. If any provisions in this Notice
are conflicting with any instructions or directions set forth in PARITY, this Official Notice of
Sale shall control. The normal fee for use of PARITY may be obtained from PARITY, and such
fee shall be the responsibility of the bidder. For further information about PARITY, potential
bidders may contact Robert W. Baird & Co. Incorporated, 25th Floor, 777 East Wisconsin
Avenue, Milwaukee, Wisconsin 53202 or PARITY, c/o i-Deal LLC, 1359 Broadway, 2nd Floor,
New York, New York 10018, telephone (212) 849-5021. The District and Robert W. Baird &
Co. Incorporated assume no responsibility or liability for bids submitted through PARITY. Each
bidder shall be solely responsible for making necessary arrangements to access PARITY for
purposes of submitting its electronic bid in a timely manner and in compliance with the
requirements of the Official Notice of Sale. Neither the District, its agents nor PARITY shall
have any duty or obligation to undertake registration to bid for any prospective bidder or to
provide or ensure electronic access to any qualified prospective bidder, and neither the District,
its agents nor PARITY shall be responsible for a bidder's failure to register to bid or for any
failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY. The District is using the services of PARITY
solely as a communication mechanism to conduct the electronic bidding for the Bonds, and
PARITY is not an agent of the District.
The District may regard the electronic transmission of the bid via the electronic service
(including information about the purchase price for the Bonds and interest rate or rates to be
borne by the Bonds and any other information included in such transmission) as though the same
information were submitted on the bid form and executed on behalf of the bidder by a duly
authorized signatory. If the bid is accepted by the District, the terms of the bid form, this
Official Notice of Sale, and the information transmitted though the electronic service shall form
a contract, and the bidder shall be bound by the terms of such contract.
For information purposes only, bidders are requested to state in their electronic bids the
true interest cost to the District, as described in this Official Notice of Sale and in the written
form of Official Bid Form. All electronic bids shall be deemed to incorporate the provisions of
this Official Notice of Sale and the form of Official Bid Form.
-4QB\18358415.1
Good Faith Deposit: A cashier's check in the amount of $34,000 may be submitted
contemporaneously with the bid or, in the alternative, a deposit in the amount of $34,000 shall
be made by the winning bidder by federal wire transfer as directed by the District Clerk or
District Treasurer to be received by the District no later than 1:00 p.m. prevailing Central Time
on the day of the bid opening (October 29, 2012) as a guarantee of good faith on the part of the
bidder to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take
up and pay for the Bonds. The good faith deposit will be applied to the purchase price of the
Bonds. In the event the successful bidder fails to honor its accepted bid, the good faith deposit
will be retained by the District. No interest shall be allowed on the good faith deposit. Payment
for the balance of the purchase price of the Bonds shall be made at the closing. Good faith
checks of unsuccessful bidders will be returned by overnight delivery for next day receipt sent
not later than the first business day following the sale.
Bond Insurance at Bidder's Option: If the Bonds qualify for issuance of any policy of
municipal bond insurance or commitment therefor at the option of the bidder, the purchase of
any such insurance policy or the issuance of any such commitment shall be at the sole option and
expense of the successful bidder. Any increased costs of issuance of the Bonds resulting from
such purchase of insurance shall be paid by the successful bidder. Failure of the municipal bond
insurer to issue the policy after the Bonds have been awarded to the successful bidder shall not
constitute cause for failure or refusal by the successful bidder to accept delivery on the Bonds.
Delivery: The Bonds will be delivered in printed form, one Bond per maturity, registered
in the name of CEDE & CO., as nominee of The Depository Trust Company, securities
depository of the Bonds for the establishment of book-entry accounts at the direction of the
successful bidder, within approximately forty-five (45) days after the award. Payment at the
time of delivery must be made in federal or other immediately available funds. In the event
delivery is not made within forty-five (45) days after the date of the sale of the Bonds, the
successful bidder may, prior to tender of the Bonds, at its option, be relieved of its obligation
under the contract to purchase the Bonds and its good faith deposit shall be returned, but no
interest shall be allowed thereon.
Legality: The successful bidder will be furnished without cost, the unqualified approving
legal opinion of Quarles & Brady LLP of Milwaukee, Wisconsin. A transcript of the
proceedings relative to the issuance of the Bonds (including an arbitrage certificate and a nolitigation certificate) will be furnished to the successful bidder without cost. A Continuing
Disclosure Certificate will be delivered at closing setting forth the details and terms of the
District's undertaking and such Certificate is a condition of closing.
CUSIP Numbers: The District will assume no obligation for the assignment of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon. The District will
permit such numbers to be assigned and printed at the expense of the successful bidder, but
neither the failure to print such numbers on any Bonds nor any error with respect thereto will
constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds.
Reoffering Prices: Simultaneously with or before delivery of the Bonds, the successful
bidder shall furnish to the District a certificate, made on the best knowledge, information and
belief of the successful bidder, acceptable to bond counsel, stating the initial reoffering prices to
-5QB\18358415.1
the public of each maturity of the Bonds and further stating that a substantial amount of each
maturity of the Bonds was sold to the public or final purchasers thereof (not including bond
houses and brokers or similar persons or organizations acting in the capacity of underwriters or
wholesalers) at or below such initial reoffering prices.
Official Statement: Bidders may obtain a copy of the Preliminary Official Statement by
request to the District's financial advisor prior to the bid opening. By submitting a bid, the
successful bidder agrees to supply to the District within 24 hours after the award of the Bonds all
necessary pricing information and any underwriter identification necessary to complete the
Preliminary Official Statement. Within seven days of the award of the Bonds, the successful
bidder will be provided with an electronic copy of the Official Statement in pdf format and up to
10 copies of the Official Statement without cost. Additional copies of the Official Statement
may be purchased from Robert W. Baird & Co. Incorporated up to three months following the
sale of the Bonds. If the successful bidder is the manager of an underwriting syndicate, the
successful bidder shall be responsible for distributing copies of the Official Statement to
syndicate members.
Certification Regarding Official Statement: The District will deliver, at closing, a
certificate, executed by appropriate officers of the District acting in their official capacities, to
the effect that the facts contained in the Official Statement relating to the District and the Bonds
are true and correct in all material respects, and that the Official Statement does not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading.
The District also agrees to notify the successful bidder of any material developments impacting
the District or the Bonds of which the District becomes aware within 60 days after the delivery
of the Bonds.
Undertaking to Provide Continuing Disclosure: In order to assist bidders in complying
with SEC Rule 15c2-12, as amended, the District will covenant to undertake (pursuant to a
Resolution to be adopted by the School Board), to provide annual reports and timely notice of
certain events for the benefit of holders of the Bonds. The details and terms of the undertaking
are set forth in a Continuing Disclosure Certificate to be executed and delivered by the District, a
form of which is included in the Preliminary Official Statement and in the Final Official
Statement.
Irregularities: The District reserves the right to reject any and all bids and to waive any
and all irregularities.
-6QB\18358415.1
Information: The internet address for the Preliminary Official Statement is:
www.bairdbondsales.com. Copies of the Preliminary Official Statement and additional
information may be obtained by addressing inquiries to: Robert W. Baird & Co. Incorporated,
777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202; Attention: Lori Jackson, (414) 2987513 or the undersigned.
Janice DeMeuse
Business Manager
318 North Main Street
Luxemburg, WI 54217
Phone: (920) 845-5982
-7QB\18358415.1
October 29, 2012
BID FORM
$1,700,000*
Brown and Kewaunee Counties, Wisconsin
General Obligation Refunding Bonds
Mr. Timothy Kinnard, President
And Members of the School Board
318 North Main Street
Luxemburg, WI 54217
Dear Mr. Kinnard and Members of the School Board:
For all but no part of your issue of $1,700,000* General Obligation Refunding Bonds (the "Bonds"), said bid being no less than
$1,704,250 (100.25% of par), or more than $1,734,000 (102.0% of par), we offer to pay a price of $_____________. The dated
date and delivery date of the Bonds is November 15, 2012. The Bonds shall bear interest as follows:
March 1, 2013 ___________%
March 1, 2014 ___________%
March 1, 2015 ___________%
March 1, 2016 ___________%
March 1, 2017 ___________%
March 1, 2018 ___________%
March 1, 2019 ___________%
March 1, 2020 ___________%
March 1, 2021 ___________%
March 1, 2022 ___________%
March 1, 2023 __________%
March 1, 2024 __________%
March 1, 2025 __________%
The Bidder elects to have the following Term Bond(s):
Final Maturity Date
March 1, _______
March 1, _______
March 1, _______
March 1, _______
For Years
______ to ______
______ to ______
______ to ______
______ to ______
Amount
$_____________
$_____________
$_____________
$_____________
This bid is made subject to all the terms and conditions of the Official Notice of Sale heretofore received and the Official Notice of
Sale heretofore published, all terms and conditions which are made a part hereof as fully as though set forth in full in this bid.
The underwriter shall be responsible for paying all costs of issuance on behalf of the District. These costs include the Financial
Advisor fee, fiscal agency fees, attorney fees, rating agency fee, and the fees for preparing and printing the Preliminary and Final
Official Statement and other miscellaneous expenses of the District incurred in connection with the offering and delivery of the
Bonds. The total of these costs is $30,275.
Good Faith Deposit: A Good Faith Deposit ("Deposit") in the form of a cashier's check in the amount of $34,000 may be
submitted contemporaneously with the bid or, in the alternative, a deposit in the amount of $34,000 shall be made by the winning
bidder by federal wire transfer as directed by the District Clerk or Treasurer to be received by the District no later than 1:00 p.m.
prevailing Central Time on the day of the bid opening (Monday, October 29, 2012) as a guarantee of good faith on the part of the
bidder to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the Bonds.
_____________________________________________
Managing Underwriter
Direct Contact and Phone Number: _____________________________________________
By: _____________________________________________
Please attach a list of account members
__ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
For your information, but not as a condition of this bid, the above interest rates result in:
Net Interest Cost $
True Interest Rate
%
__ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
The foregoing offer is hereby accepted this 29th day of October 2012 by the Members of the District Board and in recognition
therefore is signed by the Officers empowered and authorized to make such acceptance.
_______________________________
President
_______________________________
Clerk
* Preliminary, subject to change. The District reserves the right, after bids are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in multiples of $5,000 in any of the
maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is
increased or reduced.

1700000* LUXEMBURG-CASCO SCHOOL DISTRICT Brown and

Transcription

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We recommend the board move to approve the letter of agreement