2015‐16 CEO Briefing Budget Series 

Name Company Title Email RSVP

Michael WynnSunshine Ace Hardware Owner

mwynn@sunshineace.com Yes

Greg Pasanen Suncoast Credit Union Regional Vice President

greg.pasanen@suncoastcreditunion.com Yes

Ed Staros Ritz-Carlton General Managered.staros@ritzcarlton.com Yes

Dick Munro Time Warner Retired CEO and Chairman

jrmandckm@aol.com Yes

Dolph von ArxPlanters Lifesavers Company

Retired Chairman, CEO and President

dva1@comcast.net Yes

Scott Lowe Physicians RegionalMarket Chief Executive Officer

scott.lowe@physiciansregional.com Yes

Christine Markowitz Physicians Regional CFO

christine.markowitz@physicians regional.com Yes

Rick WylesNCH Healthcare System CFO

Rick.Wyles@nchmd.org

Bill Barker Naples Daily News Publisherbill.barker@naplesnews.com Yes

Dan Lavender Moorings Park CEOdlavender@mooringspark.org Yes

Criteria: Over 100 employees

7/9/2019 1

 2015‐16 CEO Briefing Budget Series 

Mary Morton Moorings Park VP of Financemmorton@mooringspark.org Yes

Rick Medwedeff

Marco Island Marriot Beach Resort, Golf Club & spa General Manager

mhrs.mrkfl.gm@mairriot.com Yes

David VazquezFlorida Gulf Coast University

Director, University Budget

dvazquez@fgcu.edu Yes

Mark IsacksonCollier County Government

Division Director of Corporate Finance and Management Services

markisackson@colliergov.net Yes

Bill Moss City of Naples City Managercitymanager@naplesgov.com Yes

Sheriff Kevin Rambosk CCSO - Sheriff Sheriff

kevin.rambosk@colliersheriff.org Yes

Dan Hall ArthrexVP of Shareholder Relations and Taxation

daniel.hall@arthrex.com Yes

Paul Huber A&D CompanyRetired, President and CEO

phuber@mindspring.com Yes

Staff:Dr. PattonMr. StumpBob SpencerPatrick WoodsSobian FoxLisa Morse

7/9/2019 2

4/15/2016

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BUDGET OVERVIEWCEO BRIEFINGJANUARY 2016

To inform local business executives about the District budget and budget process

• Utilize their expertise to facilitate improvements to the budget reporting process

• Assist in identifying additional spending reductions

Purpose

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Vision

Mission

That all students will complete school prepared for ongoing learning as well as community and global responsibilities

To provide exceptional educational opportunities that motivate and engage each student

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Scope and Size

14,000+ School Districts in the United States

Collier County Public Schools is the 115th largest

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57 Schools46,000 Students

7,000 Employees3,200 Of employees are teachers4,800 Volunteers2,300 Square Miles

Overview

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Student Demographics

White 2015 33%2005 43%

Black 2015 11%2005 10%

Hispanic 2015 52%2005 42%

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Student Demographics

Home Language

English 2015 45%2005 60%

Non-English 2015 55%2005 40%

• 57% of our Pre-K – 3 students are from Non-English homes• 86 Languages Spoken

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Student Demographics

Free and Reduced Lunch

Free/Reduced 2015 68%2005 54%

Non-Free/Reduced 2015 32%2005 46%

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New State Mandates

• New 2011 Teacher Evaluations• New 2012 Administrator Evaluations• New 2013 Performance Pay• New 2014 Florida State Standards

−English Language Arts Standards−Math Standards

• New 2015 Florida State Assessment (FSA)• New 2016 New State Accountability System

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Strategic Plan

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Current and Retired Chief Executive Officer’s and Chief Operations Officer’s from companies with 100+ employees

Community Participants

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Meeting Dates

Meeting #1 January 7, 2016

12:30 – 2:30 p.m.

Meeting #2February 19, 20162:30 – 4:30 p.m.

Meeting #3March 24, 20162:30 – 4:30 p.m.

Meeting #4April 15, 2016

8:30 – 10:30 a.m.High level overview of district budget, the budget process and implemented spending reductions

Solicit ideas to improve the budget process and spending reductions

TBD TBD

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THE BUDGET HAS FIVE MAJOR FUND GROUPS

GENERAL

DEBT

CAPITAL

SPECIAL REVENUES

INTERNALSERVICES

$487,680,495

$82,880,674

$245,245,522

$71,808,636

$89,372,052

TOTAL FINAL BUDGET

$976,987,379

Budget Overviewby Fund

FY16 Final Budget (September 2015)

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Final Hearing Budget Chart (September 2015)

General Fund50%  

Debt Service 9%

Capital Projects 25%

Special Revenue 7%

Internal Service 9%

 $‐

 $100,000,000

 $200,000,000

 $300,000,000

 $400,000,000

 $500,000,000

 $600,000,000

General Fund Debt Service Fund Capital Projects Fund Special Revenue Fund Internal Service Fund

FY15 Amount FY16  Amount

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This figure is

sometimes erroneously

used to calculate the per pupil

funding

The General Fund column displays proposed operating costs for Pre-K Programs, K-12 Schools and Workforce Programs. Meaningful per pupil calculations start with these allocations. Valid comparisons of school districts are typically made from these General Fund budget or expenditures only, rather than the total of all funds. Reports on budgets and expenditures for Florida school districts can be found at: http://www.fldoe.org/fefp/.

In general, Fund Balances are fiscal reserve amounts not intended to be expended.

Amounts transferred out of the Capital Fund are also included in the Total Expenditures for the General Fund and Debt Service Fund.

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State Calculation of Funds

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District Cost Differential

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Florida Education Finance Program Funding History (Collier County)

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Millage Rates

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• General Fund is used for the day-to-day operations of school districts• General Fund accounts for the vast majority of operational expenditures

that support the education system• Revenues and expenses for Voluntary Pre-Kindergarten and Workforce

programs are also recorded in this fund ($11.5 million)• Comparisons of Florida school districts, including per pupil budgets or

expenditures are typically made using the General Fund amounts

GENERAL FUND

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• Florida Education Finance Program (FEFP) provides equalized per student funding for school districts

• Equalization of funding guarantees each student the availability of educational programs and services substantially equal to those available to any similar student, notwithstanding geographic differences and varying local economic factors

• Funding for the FEFP includes required local effort property taxes that school districts must levy, state taxes and some local discretionary tax millages recommended by the State

GENERAL FUND

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FLORIDA EDUCATION FINANCE PROGRAM (FEFP) EQUATION

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General Fund

Federal 0.56%

Transfer from Capital/Other Financing

sources6.15%

State21.43%

Local71.86%

Where does revenue come from?

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How is it spent?

Salaries, Benefits and Substitutes

76.0%Purchased Services10.0%

Charter Schools4.1%

Electric and Fuel3.2%Supplies

3.9%Furniture, Fixtures and Equipment

2.6%

Other Expenses0.3%

4/15/2016

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General Fund Expenditures by Function

83.4% of budgeted expenditures are for direct instruction, instructional support, student transportation and school administration

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Debt Service Funds are used to account for the accumulation of resources for, and payment of, general long-term debt principal and interest. Funds for the retirement of debt are comprised of two sources:

(1) Capital Outlay and Debt Service (CO&DS) withheld for State Board of Education/Capital Outlay Bond Indebtedness (SBE/COBI) bonds; these are bonds and revenue certificates, issued by the State Board of Education for the District

(2) Capital Fund transfers, where funding is derived from District Capital Improvement Tax and Impact Fees

Debt Service Funds are appropriated for principal, interest and fee expense

DEBT SERVICE FUNDS

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DEBT SERVICE FUNDS

• Debt was incurred to pay for new schools and existing buildings renovations, to accommodate student growth

• There are no current plans to incur additional debt

• No additional new debt has been issued since 2007

• All existing debt has been refinanced to lower rates

• In 2015, the district made an early principal payment of approximately $27 million

• In 2016, the district will call and pay off an additional $27 million

• After 2016, bonds are no longer callable

Principal$ 58,386,000 

79.81%

Interest$ 14,727,221 

20.13%

Dues and Fees$ 42,933 0.06%

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• Used for educational capital needs, renovation and remodeling projects, transfers to debt service, school buses, site acquisitions, site improvements and construction, as well as facility equipment needs

• Restricted in use and cannot be used for operating salaries • In 2012, Collier County voters authorized, through a referendum, an increase in

the millage levied for the General Fund up to 0.25 mills • Capital millage voluntarily reduced by the same amount, making this a tax

neutral change in funding • The District continues to phase out reliance on the extra millage in the General

Fund • By fiscal year 2017, the additional levy in the General Fund is planned to be

completely eliminated and restored back to the Capital Fund

CAPITAL FUNDS

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CAPITAL FUNDS

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• Special Revenue funds are comprised of Nutrition Services, and Grants/Awards received from various State, Federal and local agencies

• The Nutrition Services fund accounts for revenue generated in the Nutrition Services Department, a self-funded department whose revenue can only be used for food service operations

• Nutrition Services revenue comes from federal and state meal reimbursements, and from the proceeds from students paying for meals

• Grants/Awards provide revenue which allows the District to offer services above those funded by the FEFP, further enhancing the educational delivery system

• Grants are usually provided for a specific purpose and require some level of compliance and reporting by the recipient and are frequently reviewed and/or audited

SPECIAL REVENUE

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SPECIAL REVENUE

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Internal Service Funds are used to account for the District’s individual self-insurance programs and the Employee Benefits Plan. An independent actuary reviews these self-insured plans on an annual basis. These funds include:

• Health Benefits: The Board contributes an amount set every year per insured employee to this fund and employees may add spouse and dependents to the plan at an additional cost

• Workers’ Compensation: The Board contributes a percentage of each employee’s salary to pay for workers’ compensation charges and related expenses

• Medical and Dependent Care Flexible Spending Accounts: These benefit plans allow employees to utilize pre-tax dollars, thus reducing their taxable income and taxes

INTERNAL SERVICE FUNDS

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Budget process is governed by• Truth in Millage (TRIM)

Accounting Process is governed by• Financial and Program Cost Accounting and Reporting for

Florida Schools (Red Book)Capital Project Funds are governed by

• Florida StatutesSpecial Revenue/Grants Funds are governed by

• Individual grant awardsInternal Service Funds are governed by

• Purpose for which they were collected

Constraints

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• Required by Florida Statute and School Board Policy (6210)

• A school district that falls below 3% in reserves has additional state financial reporting requirements

• Part of sound financial management

Strategic/Contingency Reserves

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• A school district with less than 2% in reserves must notify the Commissioner of Education to determine if the district has an adequate plan to avoid a financial emergency; if not, they must appoint a financial emergency board to take control of a district's finances

• For FY 2016, the District's strategic reserve ($16.4 million) and contingency reserve ($4.1 million) meet the requirements of 5% per Board Policy

• The District has other budgeted reserves designated to protect against funding reductions

Strategic/Contingency Reserves

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• Use of charts and tables to reduce number of words in Budget Book

• General Fund five year Budget forecast (currently under development)

• Budget Book will be enhanced to show additional two year comparisons for departmental budgets

Recent Enhancements to the Budget Process

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• Continuous and ongoing process to reduce costs• Preserve student programs and maintain stable workforce• Spending Reduction Committee (School and District)

• Sub-committees: FTE, Energy, Software, Centralized Printing, Health Insurance, Advertising, Class Size Reduction (CSR)

• Superintendent’s District Advisory Committee and Community• Collaborative Planning

• Prioritize use/leverage resources• Monitor District and grant budgets throughout year

• Community Input Requested via District Website

Budget/Spending Reduction Process

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District Budget/Spending Reductions$54 Million Over the Past Five Years

$15,000,000

$10,000,000

$13,000,000

$7,000,000 $9,000,000

 ‐

 5,000,000

 10,000,000

 15,000,000

 20,000,000

2011 for FY 2012 2012 for FY 2013 2013 for FY 2014 2014 for FY 2015 2015 for FY 2016

The District continues to seek budget reduction ideas. Visit www.collierschools.com to submit your ideas or suggestions.

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• School and District Discretionary Budgets $14,000,000• Reductions implemented over multiple years• Decrease Instructional Materials, Fuel, Substitute Costs

• Staff Allocations – School and District $12,800,000• School (6%), District (14%) – Targeted position reductions

• Class Size Reduction Compliance $ 8,600,000• Reduce staffing levels to achieve compliance with fewer positions

• Position Funding Shifts to/from Grants $ 6,500,000• Electricity $ 4,000,000• Health Insurance/Workers’ Compensation $ 4,000,000• Tuition, Supplement, Overtime and Salary Adjustments $ 2,300,000• Contracted Days Reduction $ 800,000• Miscellaneous Other $ 1,000,000

Budget/Spending Reductions

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To inform local business executives about the District budget and budget process

• Utilize their expertise to facilitate improvements to the budget reporting process

• Assist in identifying additional spending reductions

Purpose

Recap

Next MeetingFebruary 19, 2016 2:30 – 4:30 p.m.

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2015-2016 attendes budget briefingCEO Briefing Budget January Power Point