2014 – 2015 OFFICIAL BUDGET

RICHARDSON INDEPENDENT SCHOOL DISTRICT

Where all students learn, grow and succeed.

RICHARDSON INDEPENDENT SCHOOL DISTRICT

Richardson, Texas

ANNUAL BUDGET FOR FISCAL YEAR

From July 1, 2014 to June 30, 2015

BOARD OF TRUSTEES

Karen Holburn, President

Justin Bono

Kim Caston

Lanet Greenhaw

Kristin Kuhne

Adam Meierhofer

Kris Oliver

APPOINTED OFFICIALS

Dr. Kay Waggoner, Superintendent Patti Kieker, Deputy Superintendent

Tony Harkleroad, Deputy Superintendent, Finance and Support Services Bob DeVoll, Assistant Superintendent, Secondary Schools

Dr. Chris Goodson, Assistant Superintendent, Elementary Schools Dr. Fernando Medina, Assistant Superintendent, Human Resources

Sandra Hayes, Assistant Superintendent, Technology Mia Martin, General Counsel

Candace Ahlfinger, Executive Director, Communications and Public Affairs

For questions regarding budget or financial information, contact: Tony Harkleroad, Deputy Superintendent, Finance and Support Services

469.593.0331

Table of Contents

Superintendent’s Budget Message ....................................................................... 1

Legal Notice of Budget Hearing ............................................................................ 2

Budget and Tax Rate Adoption Calendar ............................................................. 3

Budget Overview................................................................................................... 4

Financial Forecasts ............................................................................................... 5

Employee Compensation .................................................................................... 12

Official Budget..................................................................................................... 15

Operating Fund ................................................................................................... 21

Child Nutrition Fund ............................................................................................ 24

Debt Service Fund .............................................................................................. 26

Miscellaneous Statistics and Analysis ................................................................. 29

1

NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE

The Richardson Independent School District will hold a public meeting at 6:30pm, June 16, 2014 in the Auditorium at 400 S Greenville Ave, Richardson TX 75081. The purpose of this meeting is to discuss the school district's budget that will determine the tax rate that will be adopted. Public participation in the discussion is invited. The tax rate that is ultimately adopted at this meeting or at a separate meeting at a later date may not exceed the proposed rate shown below unless the district publishes a revised notice containing the same information and comparisons set out below and holds another public meeting to discuss the revised notice.

Maintenance Tax $1.040050/$100 (proposed rate for maintenance and operations) School Debt Service Tax Approved by Local Voters $0.300000/$100 (proposed rate to pay bonded indebtedness)

Comparison of Proposed Budget with Last Year's Budget The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for each of the following expenditure categories.

Maintenance and operations 4.01 % increase

Debt Service 4.32 % increase

Total expenditures 4.05 % increase

Total Appraised Value and Total Taxable Value (as calculated under Section 26.04, Tax Code)

Preceding Tax Year Current Tax Year

Total appraised value* of all property $20,476,002,780 $20,058,890,911 Total appraised value* of new property** $100,369,258 $157,345,949 Total taxable value*** of all property $17,354,215,956 $17,023,572,244 Total taxable value*** of new property** $100,369,258 $157,345,949 *Appraised value is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code. ** "New property" is defined by Section 26.012(17), Tax Code. *** "Taxable value" is defined by Section 1.04(10), Tax Code.

Bonded Indebtedness Total amount of outstanding and unpaid bonded indebtedness* $430,134,987

*Outstanding principal. Comparison of Proposed Rates with Last Year's Rates

Maintenance & Operations

Interest & Sinking Fund*

Total

Local Revenue Per Student

State Revenue Per Student

Last Year's Rate $1.040050 $0.300000* $1.340050 $6,408 $2,666 Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service $1.041980 $0.300000* $1.341980 $6,360 $2,533

Proposed Rate $1.040050 $0.300000* $1.340050 $6,351 $2,533 *The Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on construction, equipment, or both. The bonds, and the tax rate necessary to pay those bonds, were approved by the voters of this district.

Comparison of Proposed Levy with Last Year's Levy on Average Residence

Last Year This Year Average Market Value of Residences $205,938 $206,135 Average Taxable Value of Residences $170,345 $170,522 Last Year's Rate Versus Proposed Rate per $100 Value $1.340050 $1.340050 Taxes Due on Average Residence $2,282.71 $2,285.08 Increase (Decrease) in Taxes

$2.37

Under state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older or of the surviving spouse of such a person, if the surviving spouse was 55 years of age or older when the person died, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. Notice of Rollback Rate: The highest tax rate the district can adopt before requiring voter approval at an election is $1.340067. This election will be automatically held if the district adopts a rate in excess of the rollback rate of $1.340067.

Fund Balances The following estimated balances will remain at the end of the current fiscal year and are not encumbered with or by a corresponding debt obligation, less estimated funds necessary for operating the district before receipt of the first state aid payment. Maintenance and Operations Fund Balance(s) $79,899,848 Interest & Sinking Fund Balance(s) $15,464,103

2

2014-15 Budget and Tax Rate Adoption Calendar September, 2013 through June, 2014 - Ongoing budget status meetings with the Superintendent and Superintendent’s Council. September, 2013 through June, 2014 - Board of Trustee legislative, alternative funding, bond and budget status monthly reports. October 7 - Board of Trustee Financial Integrity Rating System of Texas hearing and discussion. November, 2013 through May, 2014 - Board of Trustee Budget Committee meetings to review budget proposals/projections and provide input to staff. November 4 - Board of Trustee acceptance of Comprehensive Annual Financial Report. December 2 – Board of Trustee budget discussion. January 13 - Board of Trustee budget and demographic update discussion. February 3 - Board of Trustee follow up demographic update discussion. March 4 – Distributed additional demographic data requested by the Board of Trustees. April 21 – Budget Review Team meeting to discuss budget and compensation (normally occurs in February, but was delayed until 2014-15 budget priorities were finalized). April 30 - Dallas Central Appraisal District certifies and delivers estimated appraisal roll. First week of May - Discussions with Moody’s and Standard & Poor’s rating agencies (reported to the Board of Trustees). May 5 - Board of Trustee budget discussion. June 2 - Board of Trustee budget discussion. June 16 - Board of Trustee meeting and public hearing on the 2014–15 proposed budget and tax rate. Board of Trustee budget adoption, tax rate adoption, and approval of final end of year 2013-14 budget amendments, and acceptance of the preliminary estimated certified tax roll.

3

Richardson Independent School District 2014-15 Budget Overview

The District’s vision, mission, and goals are as follows: Vision: Where all students learn, grow and succeed. Mission: To serve and prepare all students for their global future Goals: Goal 1: Students are highly engaged in their educational life. Goal 2: Profound Curriculum is the foundation for learning. Goal 3: RISD has high performing, student focused teachers.

Goal 4: RISD ensures excellence in operations.

We believe that the budget process and proposed budget support our Vision, Mission, and Goals by evaluating available resources and focusing them on these issues. The district is required to adopt budgets for the General or Operating Fund, Child Nutrition Fund, and Debt Service Fund. Discussions in the Budget Overview will focus on the Operating Fund unless noted otherwise as this is the primary fund for the district and is the only fund currently subject to limitations from the school finance system and wealth equalization. The district faces a number of financial challenges and has developed a variety of strategies to address them, including: • A comprehensive multi-year financial plan, • Annual analysis of peer district comparative financial data, • Engaged stakeholder groups in the budget process, • Interaction with Superintendent and the Board of Trustees (see adoption calendar for details)

regarding budget throughout the year. The multi-year financial plan allows staff to be more proactive versus reactive regarding anticipated revenues, expenses, and fund balance. The current multi-year financial plan, including assumptions for enrollment, taxable values, revenues, expenses, and fund balance is as follows:

4

Exec

utiv

e Su

mm

ary

2013

-201

420

14-2

015

2015

-201

620

16-2

017

2017

-201

820

18-2

019

Tota

l Pro

ject

ed R

even

ue27

7,07

8,76

6

287,

604,

496

28

7,66

8,37

3

291,

019,

559

29

3,52

0,68

7

296,

043,

613

Tota

l Pro

ject

ed E

xpen

ditu

res

274,

331,

181

28

4,49

8,46

5

288,

701,

925

29

2,18

1,31

6

295,

436,

118

29

8,21

5,82

4

Tota

l Pro

ject

ed R

ecap

ture

-

-

-

-

-

-

Pro

ject

ed S

alar

y In

crea

ses

10,0

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923

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0,00

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000,

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Pro

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ed N

ew S

taff

Allo

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2,79

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750,

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50

0,00

0

-

Pro

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ed O

ther

Adj

ustm

ents

3,52

3,35

2

1,

343,

173

(796

,540

)

(1,2

70,6

09)

(1,2

45,1

97)

(1,2

20,2

93)

(in

clud

es s

avin

gs fr

om o

pen

posi

tions

/turn

over

, pr

ojec

ted

cost

incr

ease

s fo

r fue

l, ut

ilitie

s, e

tc.)

Red

uctio

ns/(I

ncre

ases

) Nee

ded

to M

aint

ain

Bal

ance

d B

udge

t(2

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,585

)

(3

,106

,031

)

1,

033,

553

1,16

1,75

7

1,

915,

431

2,17

2,21

1

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ing

Fund

Bal

ance

ass

umin

g no

redu

ctio

ns

are

gene

rate

d to

offs

et p

roje

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def

icits

79,8

99,8

48

82

,005

,879

79,9

72,3

26

77

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,569

74,8

95,1

38

71

,722

,927

Fu

nd B

alan

ce a

s a

% o

f exp

ense

s29

.13%

28.8

2%27

.70%

26.6

3%25

.35%

24.0

5%

Enr

ollm

ent u

sed

to c

alcu

late

reve

nue

38,2

8438

,623

39,0

8039

,695

40,1

5440

,617

2013

-14

enro

llmen

t fig

ure

is a

s of

the

final

fall P

EIM

S s

naps

hot s

ubm

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on a

nd s

ubse

quen

t yea

rs re

flect

pro

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ed e

nrol

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t gro

wth

from

the

Janu

ary,

201

4, d

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raph

ic re

port.

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enue

cal

cula

tions

not

ed a

bove

use

a 5

yea

r atte

ndan

ce a

vera

ge a

s op

pose

d to

the

3 ye

ar a

vera

ge in

prio

r ver

sion

s. T

his

resu

lts in

addi

tiona

l rev

enue

of $

682,

000

in 2

013-

14 a

nd $

693,

000

each

yea

r the

reaf

ter.

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l bud

get i

ncre

ases

for 2

014-

15 e

qual

$10

,255

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. Not

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fund

s av

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for 2

014-

15 w

ere

$8,0

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00. T

he a

dditi

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$2

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of p

ropo

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incr

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s w

ill el

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the

expe

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pos

itive

var

ianc

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exp

endi

ture

s th

at o

ccur

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ch y

ear.

5

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PR

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CTI

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S

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nten

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& O

pera

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(Ope

ratin

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13-2

014

2014

-201

520

15-2

016

2016

-201

720

17-2

018

2018

-201

91

Pro

ject

ed T

ax B

ase

16,6

91,7

44,4

31

17

,109

,038

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17,2

80,1

28,4

22

17

,280

,128

,422

17,2

80,1

28,4

22

17

,280

,128

,422

2M

& O

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Rat

e pe

r $10

0 of

val

ue0.

0100

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0.01

000.

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ss P

roje

cted

Tax

Lev

y (li

ne 1

x li

ne 2

)16

6,91

7,44

417

1,09

0,38

017

2,80

1,28

417

2,80

1,28

417

2,80

1,28

417

2,80

1,28

44

Pro

ject

ed L

evy

lost

due

to o

ver 6

5 ex

empt

ions

5,78

3,48

75,

783,

487

5,78

3,48

75,

783,

487

5,78

3,48

75,

783,

487

5G

ross

Lev

y ne

t of o

ver 6

5 af

fect

(lin

e 3-

line

4)16

1,13

3,95

716

5,30

6,89

316

7,01

7,79

716

7,01

7,79

716

7,01

7,79

716

7,01

7,79

76

Pro

ject

ed T

ax C

olle

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n R

ate

0.98

00.

980

0.98

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0.98

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et c

urre

nt y

ear t

ax re

venu

e (li

ne 5

x li

ne 6

)15

7,91

1,27

816

2,00

0,75

516

3,67

7,44

116

3,67

7,44

116

3,67

7,44

116

3,67

7,44

18

Del

inqu

ent t

ax p

aym

ents

1,75

0,00

01,

750,

000

1,75

0,00

01,

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1,75

0,00

01,

750,

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9Ta

x pe

nalti

es a

nd in

tere

st1,

200,

000

1,20

0,00

01,

200,

000

1,20

0,00

01,

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000

1,20

0,00

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ichm

ent T

ax R

even

ue -

Loca

l Col

lect

ions

6,39

4,43

46,

558,

218

6,62

5,36

96,

625,

369

6,62

5,36

96,

625,

369

11To

tal T

ax R

even

ue (a

dd li

nes

7 th

roug

h 10

)16

7,25

5,71

217

1,50

8,97

317

3,25

2,81

017

3,25

2,81

017

3,25

2,81

017

3,25

2,81

012

Oth

er R

even

ue S

ourc

es13

Oth

er L

ocal

Rev

enue

8,34

5,18

78,

345,

187

8,34

5,18

78,

345,

187

8,34

5,18

78,

345,

187

14S

tate

Aid

Incl

udin

g H

old

Har

mle

ss86

,712

,383

90,9

84,8

5389

,304

,893

92,6

56,0

7995

,157

,207

97,6

80,1

3315

TRS

On-

Beh

alf

11,9

57,1

6813

,957

,168

13,9

57,1

6813

,957

,168

13,9

57,1

6813

,957

,168

16Fe

dera

l Rev

enue

2,80

8,31

52,

808,

315

2,80

8,31

52,

808,

315

2,80

8,31

52,

808,

315

17To

tal O

ther

Rev

enue

Sou

rces

(s

um o

f lin

es 1

3 th

roug

h 16

)10

9,82

3,05

311

6,09

5,52

311

4,41

5,56

311

7,76

6,74

912

0,26

7,87

712

2,79

0,80

318

Pro

ject

ed R

even

ue (l

ine1

1 +

line

17)

277,

078,

766

287,

604,

496

287,

668,

373

291,

019,

559

293,

520,

687

296,

043,

613

19 20P

roje

cted

Exp

endi

ture

s27

4,33

1,18

128

4,49

8,46

528

8,70

1,92

529

2,18

1,31

629

5,43

6,11

829

8,21

5,82

421 22

Pro

ject

ed R

ecap

ture

(fro

m S

ched

ule

A)-

-

-

-

-

-

23 24

Pro

ject

ed E

xpen

ditu

res

less

reca

ptur

e(li

ne 2

0 - l

ine

22)

274,

331,

181

284,

498,

465

288,

701,

925

292,

181,

316

295,

436,

118

298,

215,

824

25 26Pr

ojec

ted

Bud

get C

hang

es:

27S

alar

y R

aise

s10

,093

,205

6,02

5,92

34,

000,

000

4,00

0,00

04,

000,

000

4,00

0,00

028

New

Sta

ff Al

loca

tions

7,07

5,00

02,

798,

188

1,00

0,00

075

0,00

050

0,00

029

Oth

er A

djus

tmen

ts3,

523,

352

1,34

3,17

3(7

96,5

40)

(1,2

70,6

09)

(1,2

45,1

97)

(1,2

20,2

93)

30R

educ

tion/

(incr

ease

) to

mai

ntai

n ba

lanc

ed

budg

et(2

,747

,585

)(3

,106

,031

)1,

033,

553

1,16

1,75

7 1,

915,

431

2,17

2,21

1

Exp

endi

ture

s fo

r 201

3-14

incl

ude

all r

ecur

ring

budg

et in

crea

ses

up to

and

incl

udin

g th

ose

in th

e M

ay 2

014

Bud

get S

tatu

s R

epor

t.

6

OPE

RAT

ING

FU

ND

BAL

ANC

E

2013

-201

420

14-2

015

2015

-201

620

16-2

017

2017

-201

820

18-2

019

1O

pera

ting

Fund

Bal

ance

Ana

lysi

s2

Beg

inni

ng F

und

Bal

ance

78,1

52,2

6379

,899

,848

82,0

05,8

7979

,972

,326

77,8

10,5

6974

,895

,138

3%

of t

otal

exp

endi

ture

s28

.49%

28.0

8%28

.41%

27.3

7%26

.34%

25.1

1%4

Bud

get s

urpl

us/(d

efic

it)

2,74

7,58

53,

106,

031

(1,0

33,5

53)

(1,1

61,7

57)

(1,9

15,4

31)

(2,1

72,2

11)

5R

even

ue in

crea

ses/

budg

et re

duct

ions

6E

ndin

g Fu

nd B

alan

ce80

,899

,848

83,0

05,8

7980

,972

,326

78,8

10,5

6975

,895

,138

72,7

22,9

277

% o

f tot

al e

xpen

ditu

res

29.4

9%29

.18%

28.0

5%26

.97%

25.6

9%24

.39%

8 9P

ropo

sed

uses

of f

und

bala

nce:

10E

mpl

oyee

Com

pens

atio

n11

Inst

ruct

iona

l Enh

ance

men

t Fun

d1,

000,

000

1,00

0,00

01,

000,

000

1,00

0,00

01,

000,

000

1,00

0,00

012

Inst

ruct

iona

l Pro

gram

s/C

apita

l Pro

ject

s13

Per

man

ent S

choo

l Fun

d14

Tota

l (ad

d lin

es 1

0 th

roug

h 12

)1,

000,

000

1,00

0,00

01,

000,

000

1,00

0,00

01,

000,

000

1,00

0,00

015

Pro

pose

d E

ndin

g Fu

nd B

alan

ce79

,899

,848

82,0

05,8

7979

,972

,326

77,8

10,5

6974

,895

,138

71,7

22,9

2716

% o

f tot

al e

xpen

ditu

res

29.1

3%28

.82%

27.7

0%26

.63%

25.3

5%24

.05%

Not

e - w

e w

ill try

to m

anag

e fu

nd b

alan

ce to

sus

tain

bet

wee

n 21

.5 a

nd 2

3.5%

(ran

ge w

as 2

0-22

% p

rior t

o 20

09 H

B 3

646)

.

NO

TE:

We

will

need

to tr

ansf

er a

ppro

xim

atel

y $2

.5 m

illion

from

the

Ope

ratin

g Fu

nd to

the

Cap

ital P

roje

cts

fund

to c

over

tota

les

timat

ed c

osts

of a

dditi

onal

app

rove

d ca

pita

l pro

ject

s sl

ated

for c

ompl

etio

n in

the

sum

mer

of 2

014.

We

will

also

nee

d to

mai

ntai

n fu

nd b

alan

ce d

esig

natio

ns fo

r ext

raor

dina

ry re

pairs

in th

e ev

ent t

hat c

apita

l exp

ense

s in

the

sum

mer

of 2

015

exce

edav

aila

ble

bond

fund

s.

Line

4 re

pres

ents

the

diffe

renc

e be

twee

n to

tal r

even

ue a

nd to

tal e

xpen

ses

from

the

Bud

get P

roje

ctio

ns s

heet

.

7

It is important that readers understand where district revenue comes from and how funds are spent, particularly in the Operating Fund, since it is subject to revenue limitations under current school finance legislation.

Legislative Impact on School Finance School finance was a major issue during the 2013 legislative session. Senate Bill (SB) 1 makes significant changes to the amount of funding most districts receive; however, it does not totally restore the funding reductions in public education from the last session. Background – House Bill (HB) 1 from 2006 made significant changes to the Texas Education Code that focused on school property tax rate reduction. HB 1 also created revenue limitations using 2005-06 retained revenue levels to establish a target revenue level for each district. The 2009 legislative session made some school finance adjustments through HB 3646 that basically retained the structure from HB 1 as to revenue limitations and target revenue, but provided limited added funding to districts. The following is a summary of the main points of HB 3646. Districts are guaranteed or held harmless to an amount of revenue at least equal to the state and local target revenue per weighted pupil established under HB 1 plus at least $120 per weighted pupil in new funds. This equaled about $4.9 million for RISD; however, districts were required to use much of the added funds to pay for an added mandatory pay raise for staff.

Comparison of Revenues and Expenditures

Local Property Taxes

59.60%

Other Local Sources2.90%

State Sources36.50%

Federal Sources1.00%

2014-2015 Operating FundRevenues by Source

Instruction81.20%

Instructional Support

4.90%

Plant Operations & Technology

11.10%

General Administration

2.80%

2014-2015 Operating Fund Expenditures by Function

8

The equalized wealth level for taxes up to the compressed rate (which for our district is $1.00) increased to approximately $476,500 for 2009-10, $481,900 for 2010-11, and $487,300 in 2011-12 and 2012-13. This means that the district will not make a recapture payment since our wealth level per weighted student fell below this level. While recapture fell, state revenue fell by an equal amount and we had no net gain in available revenue from this change. The first six cents above the compressed rate are equalized to the Austin ISD yield. The equalized wealth level for operating tax rates after that remains at $319,500. Texas elected to fund the cost of HB 3646 and balance their budget using federal stimulus dollars, which were only available for two years and the margins tax created to offset reductions in school property tax generated lower than projected revenue. These decisions contributed to the massive State budget deficit in 2011. This deficit coupled with the Legislative leadership’s desire to not raise taxes or access the rainy day fund, meant that the 2011 Legislative session included a number of possible funding reductions to education. Our Board and Administration started developing budget reduction strategies for several different scenarios of funding loss using input from our staff and community. We prioritized reductions to consider and refined the scenarios as the legislative session progressed. The 2011 Legislative session ended with an appropriations bill that cut funding for public education by approximately $5.4 billion over the biennium. However the session ended with no resolution as to how this funding reduction would be distributed to districts. The Governor called a special session to attempt to address school funding; however, we were required to adopt our budget prior to any resolution on school funding from the special session. Using what we felt was the most likely scenario, our budget for 2011-12 assumed a loss of $20 million in state funding. The special session focused on two methods of implementing reductions to education. One involved across the board reductions for all districts and another focused reductions more heavily on districts with higher target revenue levels. The end result was the passage of SB1 which provided somewhat of a compromise. For RISD, the primary effects of SB1 were a 7.61% reduction in the regular program allotment in Tier I for 2011-12 and a 2% reduction in 2012-13. Reductions to the regular program allotment have the effect of reducing the district’s weighted average daily attendance (WADA). Our Additional State Aid for Tax Relief (ASATR) was also reduced by 7.65% starting in 2012-13, which means our hold harmless funds were reduced starting in 2012-13. This equates to a loss of $14.2 million and $21.7 million in funding for 2011-12 and 2012-13, respectively. The bill stipulates that ASATR will be eliminated by 2017, but does not specify how this will occur. We were in a much stronger financial position than most districts due to the conservative approach of our Board of Trustees and administration over the years. While we made reductions, we were able to avoid the large layoffs and major program reductions that many other districts made during this time.

9

Current - The Texas House and Senate considered various public school funding options during the 2013 session and the end result was passage of SB1. Key funding increases in SB1 include $3.4 billion added to funding distributed by the following:

• increase the Regular Program Allotment Factor to 1 • increase the basic allotment from $4,765 to $4,950 in 2013-14 and $5,040 in 2014-15 • reduce target revenue hold harmless by $282 million in 2013-14 and $417 million in

2014-15 • includes $838.7 million in funding for instructional materials already required under

statute • increase Student Success Initiative funding by $24 million

This equates to additional net State funding for RISD of approximately $8 million. None of the last several legislative sessions have produced a solution to the issue of adequate school funding. State sponsored adequacy studies and school finance proposals have largely been based on what the State could afford to fund or was willing to fund versus what it actually costs to educate to the current mandates. RISD is a plaintiff district in litigation against the State regarding the adequacy of the school finance system. While District Judge Dietz has issued a preliminary ruling in our favor, he has indicated that he will allow further evidence to be submitted regarding changes in public school funding from the 2013 legislative session before issuing a final ruling. Once his ruling has been issued the case will likely be appealed and it is unclear at this point what, if any, additional funding may be provided as a result of the litigation. The district will continue to work with our legislators to try to improve funding. Enrollment One of our most significant challenges involves projecting enrollment. Our actual enrollment for 2013-14 was lower than projected by Templeton Demographics primarily due to lower numbers of students per unit in multi-family housing. Templeton provided updated projections to the Board in January, 2014, for a ten year period and these have been incorporated into our multi-year financial plan. While enrollment is projected to grow, it will be at a more modest rate. The district has conducted campus capacity reviews in areas with the highest enrollment growth and identified schools to increase instructional space in order to serve more students at their neighborhood school. Construction of additional space will be completed this summer for Mohawk, Richland, Dover, Merriman Park, Wallace, and White Rock elementary schools as well as Forest Meadow Junior High.

10

Recapture Current school finance laws involve property wealth equalization (also known as recapture) that is tiered depending on the operating tax rate for a district. A complex system of weights for certain student populations; allotments/adjustments; cost of education index; etc. is used to establish the amount of revenue retained. RISD’s current wealth level falls below the equalized wealth levels for our current operating tax rate. Based on the current formula and wealth levels, RISD would only pay recapture if the operating tax rate were increased above $1.06. This does not result in increased retained revenue since earlier decreases in recapture were simply offset by reductions in state revenue. RISD has sent over $420.1 million to the State in Recapture payments as follows:

Competitive Pay for All District Employees We monitor other district’s salary schedules regularly and make necessary modifications to our salary schedules to remain competitive. The Human Resources Department aggressively seeks top teachers, including beginning teachers, by offering open contracts as early in the hiring process as possible. An open contract guarantees the teacher a position within RISD although the school assignment will be determined later. This practice allows the district to retain the most qualified candidates and balance the average experience for staff.

We modified our teacher compensation schedule several years ago, moving away from a step schedule for RISD veteran teachers. These teachers receive compensation increases as approved by the Board of Trustees. We developed a hiring schedule for teachers joining the district. This compensation structure allows us to provide higher compensation to teachers who have been with the district versus those newly hired.

11

Details of Increased Employee Compensation for the 2014-15 Fiscal Year: The proposed budget for 2014-15 includes funds to provide eligible staff with a 3% increase in base salary at an estimated total operating cost of $6,025,923. The estimated operating cost reflects the cost of raises to staff funded from the general operating fund. Raises to staff whose salary is funded from sources other than the operating fund will be paid from the same source used to fund their base pay. Teacher-Type employees are teachers, counselors, nurses, and librarians. The salary adjustment is the greater of a 3% increase in base salary or the increase in the Hire-in schedule. Employees must receive an evaluation rating of at least satisfactory to receive the increase. Administrative and Support Staff will receive the greater of a 3% salary adjustment from base pay or the assigned competency step adjustment based on years experience in their respective positions. Employees must receive an evaluation rating of at least meets expectations or satisfactory on their last evaluation to receive the salary increase. The district will continue to provide a $2,000 critical need stipend to full time secondary math, secondary science, and Languages Other Than English (LOTE) teachers for 2014-15. This stipend will be subject to annual review of critical needs areas, annual review of available funding, and other factors as identified by the district and Board of Trustees.

Property Values

The Dallas Central Appraisal District (DCAD) provides an estimated preliminary certification of property values by the end of April each year and then certified property values in July. DCAD then provides monthly updates to the certified roll throughout the year to reflect changes in exemptions, value protest resolutions, etc. Property values for calculating operating revenue under the State funding formula are based on the Texas Comptroller’s property tax determination of value each year, which are generally higher than DCAD values. The district works though a multi-step appeal process each year in order to receive what is referred to as local value or the DCAD valuation. Ideally the appeal process would be resolved by the end of the fiscal year, but can take years to resolve in some instances. The Comptroller does not include local optional homestead exemption impact.

The district’s multi-year financial plan projections involve expectations as to the final tax roll that we use to collect tax levy and the Comptroller’s value to determine operating revenue from the State. Changes in taxable value estimates have no net impact on the operating budget due to the limitations imposed by the school finance system. Currently, if tax revenues go up or down then State aid changes and we receive the same net amount per weighted student. Changes in DCAD property values do have a direct impact on debt service revenue as this fund is not subject to wealth equalization or the Comptroller’s valuation.

12

2014-15 preliminary values received are 9.1% higher than current estimated 2013-14 final values. While this is encouraging, values will fall due to protests by the end of the year and final assessed values. The district has lost an average of 6.5% from the preliminary values to the final values over a 10 year period, with a high of a 10.3% loss and a low of a 4.6% loss.

We are projecting a 2.5% increase in 2014-15, 1% in 2015-16, and then flat for 2016 through 2019. This is higher than previously projected and will provide additional future bond capacity without raising the debt tax rate and/or protection from interest rate risks on future bonds. RISD remains one of the few districts that continue to provide a local optional homestead exemption to our residential taxpayers. This, combined with a moderate debt tax rate, results in one of the lowest tax levies for our taxpayers of any district in the metroplex (a comparison of tax impact on property owners is provided later in the document). 2014-15 Budget Recommendations While our approach to budgeting has been more conservative than many of our peer districts, we believe it created the most stability for our staff and represented the most sustainable approach for our community. This conservative approach put us in a much stronger financial position than many districts, contributing to our high credit rating; balanced sustainable budget; low tax levy compared to area districts, strong reserves and ability to avoid major layoffs. The proposed budget for 2014-15 includes a more aggressive approach to both revenue and expenses than in prior years. Revenue calculations use the exact enrollment projections from the demographer with no buffer for negative variance. Proposed expenses include using most of the positive expense variance we would expect to see each year from unspent funds and open positions that was identified in discussions involving total available funds. This means that negative variances from items such as lower than projected enrollment growth will have to be funded from operating fund balance. Alternatives involving immediately increasing the tax burden on our community or exhausting our reserves are not recommended at this time. The recommendation is that we move forward with the budget as proposed and if actual enrollment in 2014-15 is higher than projected, consider reinstituting an operating fund budget buffer to address potential variances in the future and replenish discretionary funds for added capital projects.

13

2014-15 Budget Increase Recommendations

The remainder of this document contains details as to proposed budgets by fund and function and miscellaneous statistics and analysis. Please feel free to contact our offices with questions. Thank you.

ProposalProposedIncrease Comments

3% raise for staff- amount reflects cost foremployees funded from Operating Fund only

$6,025,923 Provides for competitive salaries and staff retention

28 Additional Elementary Allocations $1,400,000 Provides for enrollment growth, reduced overflow, and reduced class sizes

2 Additional Secondary Allocations $100,000 Provides for increased CTE offeringsAdditional Assistant Principal(s)Elementary 3Secondary 0

$194,400

The increase in student enrollment at several schools due to constructionmay necessitate a need for new or a shift in Asst. Principals at the elementary level.

Athletics - Increase stipend for Volleyball Coaches$12,300

Proposal increases volleyball stipend 12,300 to equal basketball stipend forhead and assistant coaches.

Extra Curricular - Increase stipend for CheerleaderSponsors

$3,500 Increases varsity cheerleader sponsor stipend to market.

Increase days for Environmental Center Manager $3,835 Increase days form 180 to 207 (27 days at 142.03 daily rate)Mentor Program $120,000 Budget will support stipends, training, substitute payIncrease SDS Salary $65,000 65 total SDS district wide; retention initiativeInstructional PK Aides (2) $35,098 Wallace and Dover Elementary - Aide I (PRJ)PK Teachers $100,000 Wallace and Dover ElementaryDirector of Data Analysis and Reporting $80,850 Position is needed to support Dept. of Acct. and Continuous ImprovementSpecial Education - Diagnosticians AVJ paygrade, (15) $836,130 Based on audit findings.Special Education - Paraprofessionals (2) $41,000 Based on audit findings.Dyslexia - Teachers (5) $250,000 Based on audit findings.Registrars (4) $120,000 To register students, freeing up counselorsAdditional Counselors (2.2 Elementary) $144,630 Elementary Counselors for larger schoolsIncrease Health Services Aide Compensation $15,000 MarketTesting Coordinators (ACI) $25,000 Fund half time Testing Coordinator at LHFCIntern - Secondary (1) $60,000 To serve as Assistant PrincipalDyslexia & Library Instructional Support $45,000 Clerical help for Dyslexia Director, Upgrade from Program Specialist I to

Program Specialist II - LibraryInstructional Programs - Learning List, ABYDOS $42,500 LL Subscription 12,500; ABYDOS stipends 30,000Increase the hourly rate for Dallas SRO's and add 1SRO to support elementary campuses

$76,000 Mar for SRO's and enhance elementary support

Instructional Program - Mariachi (PHS) $8,000 Teacher Stipend and suppliesCTE Advisors (2) $120,000 Support for 2nd year CTE studentsAPPS - Communications $10,000 Maintenance of APPSIncrease Budget for STARS Teacher Committee(Organizational Development)

$1,080 Includes substitutes, food and tickets to REA Banquet for STARCommittee

Curriculum & Instruction central staff reorganization $249,124 K-12 curriculum alignment, support retention efforts, support technologyinitiatives

KRONOS timekeeping system maintenance $66,124 provide for maintenance expense no longer eligible for bondPACE payroll increase $4,790 Support expanded PACE offerings to students

Total Budget Increase $10,255,284

14

OFFICIAL BUDGET

The Official Budget is presented for the Operating Fund, the Child Nutrition Fund and the Debt Service Fund.

15

RICHARDSON INDEPENDENT SCHOOL DISTRICTOFFICIAL BUDGETFISCAL YEAR 2014-15

Child Debt Total byOperating Nutrition Service Enrolled

Fund Fund Fund Total Student*

Estimated RevenuesLocal Revenue 179,854,160 4,878,695 48,733,466 233,466,321 6,045 State Revenue 104,942,021 88,332 - 105,030,353 2,719 Federal Revenue 2,808,315 11,606,851 - 14,415,166 373

Total Revenues 287,604,496 16,573,878 48,733,466 352,911,840 9,137

Appropriations11 - Instruction 183,565,650 - - 183,565,650 4,753 12 - Library & Media Services 5,143,643 - - 5,143,643 133 13 - Curriculum/Instructional Staff Development 3,418,200 - - 3,418,200 89 21 - Instructional Administration 5,184,605 - - 5,184,605 134 23 - School Leadership 20,526,058 - - 20,526,058 531 31 - Guidance and Counseling 10,987,265 - - 10,987,265 284 32 - Attendance and Social Work 808,754 - - 808,754 21 33 - Health Services 3,950,728 - - 3,950,728 102 34 - Student Transportation 4,463,791 - - 4,463,791 116 35 - Child Nutrition - 16,066,243 - 16,066,243 416 36 - Co-Curricular / Extra Curricular Activities 5,876,465 - - 5,876,465 153 41 - General Administration 7,633,365 - - 7,633,365 198 51 - Plant Maintenance & Operations 25,458,177 497,635 - 25,955,812 672 52 - Security and Monitoring Services 1,553,565 - - 1,553,565 40 53 - Data Processing Services 4,800,058 - - 4,800,058 124 61 - Community Services 171,690 10,000 - 181,690 5 71 - Debt Administration 9,941 - 48,589,063 48,599,004 1,258 95 - Juvenile Justice Alternative Education Program 50,000 - - 50,000 1 97 - Tax Increment Fund - - 132,650 132,650 3 99 - Other Intergovernmental Charges 896,510 - - 896,510 23

Total Appropriations 284,498,465 16,573,878 48,721,713 349,794,056 9,056

*Based on 2014-15 enrollment projection of 38,623 students

16

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20

OPERATING FUND

The Operating Fund is the fund where most expenditures are recorded for the operation of the schools and central offices. Expenditures paid from this fund include teachers’ and administrators’ salaries and benefits, classroom supplies and equipment, educational computing, utilities, routine maintenance of buildings and transportation costs. The maintenance and operations budget is included in the Operating Fund. Also included in the Operating Fund are budgets for tuition based programs and co-curricular activities.

21

RICHARDSON INDEPENDENT SCHOOL DISTRICTOFFICIAL BUDGET - OPERATING FUNDFISCAL YEAR 2014-15

2013-14 2014-15Adopted Increases Adopted Percent of PercentageBudget (Decreases) Budget Total Change

Estimated RevenuesLocal Revenue 173,298,927 6,555,233$ 179,854,160 62.5% 3.8%State Revenue 97,680,880 7,261,141 104,942,021 36.5% 7.4%Federal Revenue 2,808,315 - 2,808,315 1.0% 0.0% Total Revenues 273,788,122 13,816,374 287,604,496 100.0% 5.0%

Appropriations11 - Instruction 176,287,412 7,278,238 183,565,650 64.5% 4.1%12 - Library & Media Services 5,031,211 112,432 5,143,643 1.8% 2.2%13 - Curriculum/Instructional Staff Development 3,136,193 282,007 3,418,200 1.2% 9.0%21 - Instructional Administration 4,733,668 450,937 5,184,605 1.8% 9.5%23 - School Leadership 19,794,372 731,686 20,526,058 7.2% 3.7%31 - Guidance and Counseling 10,248,065 739,200 10,987,265 3.9% 7.2%32 - Attendance and Social Work 783,897 24,857 808,754 0.3% 3.2%33 - Health Services 3,806,615 144,113 3,950,728 1.4% 3.8%34 - Student Transportation 4,459,129 4,662 4,463,791 1.6% 0.1%36 - Co-Curricular/Extra Curricular Activities 5,751,629 124,836 5,876,465 2.1% 2.2%41 - General Administration 7,348,897 284,468 7,633,365 2.7% 3.9%51 - Plant Maintenance & Operations 25,286,449 171,728 25,458,177 8.9% 0.7%52 - Security and Monitoring Services 1,483,333 70,232 1,553,565 0.5% 4.7%53 - Data Processing Services 4,216,434 583,624 4,800,058 1.7% 13.8%61 - Community Services 213,007 (41,317) 171,690 0.1% (19.4%)71 - Debt Administration 26,967 (17,026) 9,941 0.0% (63.1%)95 - Payments to JJAEP 50,000 - 50,000 0.0% 0.0%99 - Other Intergovernmental Charges 874,517 21,993 896,510 0.3% 2.5% Total Appropriations 273,531,795 10,966,670 284,498,465 100.0% 4.0%

22

RICHARDSON INDEPENDENT SCHOOL DISTRICTOPERATING FUND BUDGET - ESTIMATED REVENUESFISCAL YEAR 2014-15

2013-14 2014-15Adopted Increases Adopted Percent of PercentageBudget (Decreases) Budget Total Change

Local Sources:Property Taxes5711 Property Taxes-Current Year 155,533,987$ 6,466,768$ 162,000,755$ 56.3% 4.2%5711 Property Taxes-Enrichment Tax-Local Collections 6,469,753 88,465 6,558,218 2.3% 1.4%5712 Property Taxes-Prior Years 1,750,000 - 1,750,000 0.6% 0.0%5719 Penalty & Interest 1,200,000 - 1,200,000 0.4% 0.0%

Total Property Taxes 164,953,740 6,555,233 171,508,973 59.6% 4.0%

Fees & Tuitions5739 Fees & Tuition 4,689,187 - 4,689,187 1.6% 0.0% Enterprising Activities 5752 Game Receipts-All Sports 510,000 - 510,000 0.2% 0.0%

Miscellaneous Revenues5742 Investment Income 575,000 - 575,000 0.2% 0.0%5759 Athletic Concession Commission 80,000 - 80,000 0.0% 0.0%5743 Rentals on Facilities 1,846,000 - 1,846,000 0.6% 0.0%5744 Gifts 20,000 - 20,000 0.0% 0.0%5745 Theft and Vandalism 10,000 - 10,000 0.0% 0.0%5749 Other Misc Income 615,000 - 615,000 0.2% 0.0%

Total Other Local Revenues 8,345,187 - 8,345,187 2.9% 0.0%

Total Local Sources 173,298,927 6,555,233 179,854,160 62.5% 3.8%

State Sources:5811/5812 State Aid Including Hold Harmless &

Salary Transitional Entitlement 85,723,712 5,261,141 90,984,853 31.6% 6.1%5831 TRS On Behalf 11,957,168 2,000,000 13,957,168 4.9% 16.7%Total State Sources 97,680,880 7,261,141 104,942,021 36.5% 7.4%

Federal Sources:5929 Miscellaneous Federal 600,000 - 600,000 0.2% 0.0%5931 School Health and Related Services 2,208,315 - 2,208,315 0.8% 0.0%Total Federal Sources 2,808,315 - 2,808,315 1.0% 0.0%

Total Operating Fund 273,788,122$ 13,816,374$ 287,604,496$ 100.0% 5.0%

23

CHILD NUTRITION FUND

The Child Nutrition Fund is where revenues and expenditures are recorded for the school lunch and breakfast program. Expenditures of the Child Nutrition Fund are funded from lunch and breakfast sales, state grants and federal grants. This fund is included with other Special Revenue Funds.

24

RICHARDSON INDEPENDENT SCHOOL DISTRICTOFFICIAL BUDGET - CHILD NUTRITION FUNDFISCAL YEAR 2014-15

2013-14 2014-15Adopted Increases Adopted Percent of PercentageBudget (Decreases) Budget Total Change

Revenue5751 Cafeteria Sales 4,536,709$ 326,986 4,863,695$ 29.4% 7.2%5742 Investment Income 17,000 (2,000) 15,000 0.1% (11.8%)5829 State Reimbursements 81,431 6,901 88,332 0.5% 8.5%5920 Federal Reimbursements 11,337,960 268,891 11,606,851 70.0% 2.4% Total Revenue 15,973,100 600,778 16,573,878 100.0% 3.8%

Expenditures

35 Food Service Payroll 5,423,702 333,518 5,757,220 34.7% 6.1%

Contracted Services 445,948 31,328 477,276 3.0% 7.0% Materials & Travel 9,499,181 192,566 9,691,747 58.4% 2.0% Capital Outlay 100,000 40,000 140,000 0.8% 40.0%

51 Plant Maintenance & Operations Payroll 105,301 3,366 108,667 0.7% 3.2%

Contracted Services 388,968 - 388,968 2.3% 0.0%61 Community Service

Payroll 10,000 - 10,000 0.1% 0.0% Total Expenditures 15,973,100$ 600,778$ 16,573,878$ 100.0% 3.8%

25

DEBT SERVICE FUND

The Debt Service Fund contains monies that are set aside to pay principle and interest on debt incurred through the sale of bonds. The proceeds from bonds are used to finance long-term improvements to school buildings as well as to build and equip new schools.

26

RICHARDSON INDEPENDENT SCHOOL DISTRICTOFFICIAL BUDGET - DEBT SERVICE FUNDFISCAL YEAR 2014-15

2013-14 2014-15Amended Increases Official Percent of PercentageBudget (Decreases) Budget Total Change

Revenue71-5711 Property Taxes-Current Yr $46,743,603 $1,022,213 $47,765,816 98.0% 2.2%71-5712 Property Taxes-Prior Yrs 500,000 0 500,000 1.0% 0.0%71-5719 Penalty & Interest 300,000 0 300,000 0.6% 0.0%97-5746 Property Taxes-TIF 60,900 71,750 132,650 0.3% 117.8% Total Property Taxes 47,604,503 1,093,963 48,698,466 99.9% 2.3%

5742 Investment Earnings 35,000 0 35,000 0.1% 0.0%Total Revenue $47,639,503 $1,093,963 $48,733,466 100.0% 2.3%

Debt Service Requirements71-6500 Debt Payments 47,332,779 $1,256,286 $48,589,065 99.7% 2.7%97-6499 TIF Payments 115,900 16,750 132,650 0.3% 14.5%Total Debt Service Requirements 47,448,679$ 1,273,036$ 48,721,715$ 100.0% 2.7%

Principal InterestPayments Payments Other Amounts Total

Detailed Debt Service to be Paid to be Paid to be Paid PaymentUnlimited Tax School Bldg Bonds, Series 1998B - 272,025 1,000 273,025Unlimited Tax School Bldg Refunding Bonds, Series 2005 5,270,000 1,024,338 1,000 6,295,338Unlimited Tax School Bldg Bonds, Series 2005 2,730,000 68,250 1,000 2,799,250Unlimited Tax School Bldg Refunding Bonds, Series 2006 240,000 824,865 1,000 1,065,865Unlimited Tax School Bldg Bonds, Series 2006 935,000 65,138 1,000 1,001,138Unlimited Tax School Bldg Refunding Bonds, Series 2006A 220,000 1,164,760 1,000 1,385,760Unlimited Tax School Bldg Bonds, Series 2007 1,460,000 1,417,575 1,000 2,878,575Unlimited Tax School Bldg Bonds, Series 2008 2,665,000 981,250 1,000 3,647,250Unlimited Tax School Bldg Bonds, Series 2009 100,000 381,500 1,000 482,500Unlimited Tax School Bldg Bonds, Series 2010 780,000 530,200 1,000 1,311,200Unlimited Tax School Bldg Refunding Bonds, Series 2010 155,000 401,650 1,000 557,650Unlimited Tax School Bldg Refunding Bonds, Series 2011 6,765,000 605,413 1,000 7,371,413Unlimited Tax School Bldg Bonds, Series 2011 - 1,727,244 1,000 1,728,244Unlimited Tax School Bldg Refunding Bonds, Series 2012 - 750,100 1,000 751,100Unlimited Tax School Bldg & Refunding Bonds, Series 2012 3,800,000 3,971,025 1,000 7,772,025Unlimited Tax School Bldg & Refunding Bonds, Series 2013 1,575,000 3,000,275 1,000 4,576,275Unlimited Tax School Bldg Bonds, Series 2014A 2,385,000 725,257 1,000 3,111,257Unlimited Tax School Bldg Refunding Bonds, Series 2014B 330,000 857,700 1,000 1,188,700Professional Services Bond Counsel - - 17,500 17,500TIF Payments Skillman Corridor - - 132,650 132,650Estimated Closing Costs for

New Bond Issues 375,000 375,000Total required for Debt Service $29,410,000 $18,768,565 $543,150 $48,721,715

27

RICHARDSON INDEPENDENT SCHOOL DISTRICTDEBT SERVICE SCHEDULESFISCAL YEAR 2014-2015SUMMARY OF ALL DEBT PAYMENTS

Total PrincipalCalendar Year Principal Interest and Interest

2014-15 29,410,000 18,768,565 48,178,565

2015-16 25,530,000 17,512,069 43,042,069

2016-17 19,944,995 18,808,630 38,753,625

2017-18 22,750,000 15,695,845 38,445,845

2018-19 22,350,000 14,766,281 37,116,281

2019-20 20,199,992 16,940,066 37,140,058

2020-21 24,195,000 12,959,951 37,154,951

2021-22 21,015,000 11,959,776 32,974,776

2022-23 22,295,000 11,006,449 33,301,449

2023-24 20,220,000 10,046,435 30,266,435

2024-25 19,950,000 9,131,191 29,081,191

2025-26 17,575,000 8,254,011 25,829,011

2026-27 18,420,000 7,410,350 25,830,350

2027-28 16,795,000 6,595,956 23,390,956

2028-29 17,610,000 5,787,006 23,397,006

2029-30 15,130,000 5,018,500 20,148,500

2030-31 13,370,000 4,339,025 17,709,025

2031-32 13,330,000 3,690,194 17,020,194

2032-33 12,315,000 3,081,763 15,396,763

2033-34 12,070,000 2,515,244 14,585,244

2034-35 11,820,000 1,951,163 13,771,163

2035-36 12,400,000 1,369,381 13,769,381

2036-37 10,525,000 808,875 11,333,875

2037-38 8,570,000 331,500 8,901,500

2038-39 2,345,000 58,625 2,403,625

$430,134,987 $208,806,851 $638,941,838

*Note: Total principal and interest does not include $543,150 in administrative fees, TIF payments and bond issuance costs to be paid in 2014-2015.

28

Miscellaneous Statistics and Analysis

10-Year Comparative Data

Change in the Tax Bill of a $100k Single-Family Residence (w / Homestead Exemption)

Comparison of ISD Tax Rates per $100 Property Value

29

Richardson ISD10-Year Comparative Data

2002-03 2012-13 % ChangeOperating Expenses (less recapture) 214,123,811$ 246,616,157$ 15.2%

Debt Service Expenses 50,042,030$ 46,255,785$ (7.6%)

Child Nutrition 11,025,683$ 13,304,615$ 20.7%

Tax Rate 1.808 1.340 (25.9%)

Limited English Proficient Students 6,468 9,078 40.4%

Economically Disadvantaged Students 13,773 22,019 59.9%

Total Enrollment 34,949 37,954 8.6%

CPI (inflation) increase per US Bureau of Labor Statistics 27.0%

Total Staff 4,241 4,695 10.7%

Central Administration Staff 67 43 (36.0%)

Data obtained from TEA's 2002 Academic Excellence Indicator System (AEIS) Report and 2013 Texas Academic Performance Report (TAPR). Beginning with 2012-13, AEIS transitioned into what is now referred to as the TAPR.

2002-03 AEIS financial data uses 2002-03 original adopted budget information:Total Operating Expenses (less recapture) are identified as budgeted operating fund expenditures (less recapture)Debt Service Expenses are defined as non-operating debt service expenditures.Child Nutrition Expenses are defined as budgeted expenditures for Food Service (function 35).

2012-13 TAPR financial data uses the actual 2011-12 year-end audited financials:Total Operating Expenses (less recapture) are defined as operating disbursements.Debt Service Expenses are calculated using debt service expenditures for all funds less the operating fund portion.Child Nutrition Expenses are defined as food service expenditures (Function 35).

30

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2013

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2012

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