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HomeMy WebLinkAboutProvo City School District - Public Financial Report Popular Annual Financial Report Provo City School District Provo, Utah For the Year Ended June 30, 2021 in Provo City School District. COVID students receive the best educatfon possible, along with meaningful extracurricular actfvitfes. District administratfon, memb District safety committee, and representatfves of the Utah County Health Department met three days a week the greater part of school year to review current COVID District curriculum to take advantage of technology provided to students and teachers. The Technology Department focused on providing 1 devices for all students throughout the District. This initfatfve provided unique challenges including network security and maintenance. The Facilitfes Department contfnued its commitment to providing clean schools with extra sanitatfon throughout t The Child Nutritfon Department provided thousands of meals to all students throughout the District. The District including teachers and aides, provided excellent educatfon for students in class, online and at home. District nurses provide testfng services, contact tracing and inexhaustfble help and guidance to school and district administratfon. The Student Serv ment provided extra social workers and advocates to monitor students ment provided many services to students with disabilitfes both at school and in homes. Successful completfon of the school ye quired the combined effort and energy of all District employees reaffirming our belief that our employees are our most important asset. tain a strong financial positfon, in part because of our goal to focus on long term planning and transparency. The District goals guide the actfons of ad- ministrators, teachers, students and parents in making decisions to create a successful learning environment for all students, whether in person or online. This plan creates a startfng point for budget creatfon, classroom planning and student achievements. Giving teachers the support needed to provide excellent classrooms is one of the main goals, including making sure that the compensatfon is competftfve with surrounding school districts. term planning of the school district. With the creatfon of the Facilitfes Advi- sory Committee, comprised of District administratfon, a long plan has been created, prioritfzing projects throughout the District. Using the long tfon bonds were approved by Provo City voters in November 2020 to rebuild the academic wing of Timpview High School, which wa identffied as a critfcal facilitfes need. Constructfon is well under way as of the publicatfon of this report. Municipal Buil bonds were also authorized in November 2021 to replace two additfonal schools. Those projects will begin in 2022. Provo City School District is well managed. Key financial informatfon, as well as other key data points will be addressed th document. For further informatfon regarding the budget process in our annual budget document or complete financial informatfo from the Annual Comprehensive Financial Report, please visit https://provo.edu/business 1 Provo City School District Introductfon To the Citfzens of Provo City, We are pleased to present Provo City School District’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. This report is designed to provide informatfon on es- sentfal district functfons and make the financial operatfons of our school district more under- standable for general citfzens. This PAFR, for the fiscal year ended June 30, 2021, contains a brief summary and explanatfon of the District’s general operatfng fund revenues and expenditures as well as other relevant finan- cial and statfstfcal trends and informatfon applicable to the District and its citfzens. This selected informatfon is taken from financial statements contained in the District’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. Informatfon in the Annual Comprehensive Financial Report includes both government-wide and governmental fund data. Individuals who wish to review GAAP basis, full disclosure financial statements should refer to the District’s Annual Comprehensive Financial Report , which can be viewed at https://provo.edu/business-and-finance/financial-reports/. The purpose of the PAFR is to help community members understand how the district utflizes tax dollars and other reve- nues to educate our students. Our goal is to ensure that you have the best, most easily understandable financial infor- matfon available and to increase your confidence in the manner our District is operated. Questfons and comments are welcome and may be directed to Provo City School District Business Services at 801-374-4800. Respectiully, Keith Rittel, Superintendent of Schools The Government Finance Officers Associatfon of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reportfng to Provo City School District for its Popular Annual Financial Report for the fiscal year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reportfng is a prestfgious natfonal award recognizing conformance with the highest standards for preparatfon of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reportfng, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creatfvity, presentatfon, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reportfng is valid for a period of one year only. Provo City School District has received a Popular Award for nine consecutfve years. We believe our current report contfnues to conform to the Popular Annual Financial Reportfng requirements, and will be submitting it to the GFOA. **PAFR is optfmized for onscreen viewing. For best results, choose “two page display “in your PDF reader. Popular Annual Financial Report rovo City School District was officially organized in 1898. Our purpose is to provide public educatfon to students who reside in Provo City . The District operates two traditfonal high schools, an alternatfve high school, two middle schools, thirteen elemen- tary schools and an E-school. The 2020-2021 school year presented interestfng challenges in all aspects of educatfng students in Provo City School District. COVID-19 contfnued to create a delicate balance between student and employee safety and making sure students receive the best educatfon possible, along with meaningful extracurricular actfvitfes. District administratfon, members of the District safety committee, and representatfves of the Utah County Health Department met three days a week the greater part of the school year to review current COVID-19 caseloads, outbreaks and strategies to combat issues arising from the COVID-19 pandemic. The District’s Teaching and Learning Department provided hundreds of hours of professional development, focused on blended learning curriculum to take advantage of technology provided to students and teachers. The Technology Department focused on providing 1-to- 1 devices for all students throughout the District. This initfatfve provided unique challenges including network security and technology maintenance. The Facilitfes Department contfnued its commitment to providing clean schools with extra sanitatfon throughout the year. The Child Nutritfon Department provided thousands of meals to all students throughout the District. The District’s instructfonal staff, including teachers and aides, provided excellent educatfon for students in class, online and at home. District nurses provided COVID-19 testfng services, contact tracing and inexhaustfble help and guidance to school and district administratfon. The Student Services Depart- ment provided extra social workers and advocates to monitor students’ social and emotfonal wellbeing. The Special Educatfon Depart- ment provided many services to students with disabilitfes both at school and in homes. Successful completfon of the school year re- quired the combined effort and energy of all District employees— reaffirming our belief that our employees are our most important asset. Throughout the challenging year, the District has been able to main- tain a strong financial positfon, in part because of our goal to focus on long- term planning and transparency. The District goals guide the actfons of ad- ministrators, teachers, students and parents in making decisions to create a successful learning environment for all students, whether in person or online. This plan creates a startfng point for budget creatfon, classroom planning and student achievements. Giving teachers the support needed to provide excellent classrooms is one of the main goals, including making sure that the compensatfon is competftfve with surrounding school districts. Capital improvement planning is another key element in the long- term planning of the school district. With the creatfon of the Facilitfes Advi- sory Committee, comprised of District administratfon, a long-term capital plan has been created, prioritfzing projects throughout the District. Using the long-term capital plan, administratfon has been able to put that plan into actfon and schedule projects accordingly. General obliga- tfon bonds were approved by Provo City voters in November 2020 to rebuild the academic wing of Timpview High School, which was identffied as a critfcal facilitfes need. Constructfon is well under way as of the publicatfon of this report. Municipal Building Authority bonds were also authorized in November 2021 to replace two additfonal schools. Those projects will begin in 2022. Provo City School District is well managed. Key financial informatfon, as well as other key data points will be addressed throughout this document. For further informatfon regarding the budget process in our annual budget document or complete financial informatfon from the Annual Comprehensive Financial Report, please visit https://provo.edu/business-and-finance/financial-reports/. For the Year Ended June 30, 2021 2 District Overview—Goals Our Goals • Continuous academic improvement and trans- parency • Support for teachers and teaching aligned with research, best practices, and teacher-identified needs • Improved certainty and stability in the direction of the district • Financial prioritization, long-term planning, and transparency • Teamwork, Professional Conduct, and Civility 3 Provo City School District District Organizatfon Gina Hales 2021-Current Melanie Hall Board President 2017-Current Nate Bryson 2019-Current McKay Jensen 2019-Current Jennifer Partridge 2019-Current Teri McCabe 2021-Current Rebecca Nielsen Board Vice President 2017-Current Keith Rittel Superintendent Derek Anderson Business Administrator Jason Cox Executfve Director— HR/Deputy Superin- tendent Todd McKee Executfve Director— Secondary Educatfon Anne-Marie Harrison Executfve Director— Teaching & Learning Alex Judd Executfve Director— Elementary Educa- tfon Doug Finch Executfve Director— Student Services The Provo City School District Board of Educatfon is the elected governing body. The Board of Educatfon appoints the District Superintendent and the Business Ad- ministrator. The term of office for Board members is four years, beginning on the first Monday in January following the November electfon. The term of office for the Superintendent and Business Administrator is two years. For the Year Ended June 30, 2021 4 School Administratfon Other District Administratfon District Informatfon Popular Annual Financial Report State funding from the Utah State Board of Educatfon is almost solely funded by student enrollment. Student enrollment has stayed relatfvely flat over the last 8 years with the exceptfon of the 2020-2021 school year. Some parents chose to use alternate sources for edu- catfon due to concern of the COVID-19 pan- demic. Total district enrollment has fluctuated a little more due to a format change in the Dis- trict’s eSchool program. Students at Provo City School District come from diverse backgrounds and cul- tures. The District has a Diversity and Equity Committee that regularly meets to identffy needs and services for students. From limited English speakers to free and reduced lunch to Homeless or Youth in Custody, these students are provided extra services from the District to maximize their educatfonal resources. Num- bers for free or reduced lunch are lower than previous years because school lunch has been provided at no cost since the COVID-19 pandemic began and ap- plicatfons are not required this school year. 5 Provo City School District School Informatfon Amelia Earhart Elementary (K-6) Principal: Ryan McCarty Enrollment: 422 Year Built: 1999 Canyon Crest Elementary K-6) Principal: Rene Cunningham Enrollment: 379 Year Built: 1982 Edgemont Elementary (K-6) Principal: Harmony Kartchner Enrollment: 536 Year rebuilt: 2017 Franklin Elementary (K-6) Principal: Jason Benson Enrollment: 332 Year Built: 1994 Rock Canyon Elementary (K-6) Principal: Seth Hansen Enrollment: 515 Year Rebuilt: 2016 Spring Creek Elementary (K-6) Principal: Jill Franklin Enrollment: 382 Year Built: 2002 Sunset View Elementary (K-6) Principal: Chris Chilcoat Enrollment: 526 Year Rebuilt: 2016 Timpanogos Elementary (K-6) Principal: Carrie Rawlins Enrollment: 565 Year Rebuilt: 2008 Centennial Middle School (7-8) Principal: Kyle Bates Enrollment: 1,200 Year Built: 1996 Dixon Middle School (7-8) Principal: John Anderson Enrollment: 928 Year Built: 1931 Municipal Building Authority bonds approved to rebuild November 2021 Elementary Schools Middle Schools High Schools Popular Annual Financial Report For the Year Ended June 30, 2021 6 School Informatfon 6) Principal: Jason Benson Lakeview Elementary (K-6) Principal: Mike Barker Enrollment: 667 Year Built: 2007 Provo Peaks Elementary (K-6) Principal: Mark Burge Enrollment: 473 Year Built: 2011 Provost Elementary (K-6) Principal: Kami Alvarez Enrollment: 416 Year Rebuilt: 2018 Timpanogos Elementary (K-6) Principal: Carrie Rawlins Wasatch Elementary (K-6) Principal: Chris Fuhriman Enrollment: 623 Year Built: 1949 Municipal Authority Bonds Ap- proved to rebuild November 2021 Westridge Elementary (K-6) Principal: Kim Hawkins Enrollment: 601 Year Built: 1979 Provo High School (9-12) Principal: Boyd McAffee Enrollment: 1,931 Year Built: 2018 Timpview High School (9-12) Principal: Fidel Montero Enrollment: 2,353 Year Built: 1974 Independence High School (9-12) Principal: Jacob Griffin Enrollment: 184 Year Built: 1992 High Schools Readers of the Popular Annual Financial Report should keep in mind that the numbers are from the District’s Annual Comprehensive Financial Report. The numbers below and in subsequent pages are presented in GAAP format and represent the District’s governmen- tal funds. The report contains all of the audited financial statements and disclosures. The PAFR is not audited and does not include a presentatfon of all funds in their entfrety. The PAFR is not intended to present a complete financial picture according to GAAP, but is intended to present District financial informatfon in a summary form that is easy to understand. To obtain a complete financial picture of Provo City School District, please view our Annual Comprehensive Financial Report by visitfng our website at https://provo.edu/ business-and-finance/financial-reports/. The informatfon below reflects a three-year comparison of the District’s governmental revenues and expenditures. Subsequent pages will address individual funds, but an overall representatfon of all funds is important to show the District’s total revenues and expendi- tures by functfon. 7 Provo City School District Financial Informatfon—All Funds Revenues 2018-19 2019-20 2020-21 Property Taxes 51,290,626$ 52,082,647$ 58,205,541$ Other Local Sources 11,336,047 9,159,781 6,920,196 State of Utah 83,519,693 86,692,546 91,376,286 Federal 12,639,150 13,185,638 19,042,337 Total Revenues 158,785,516$ 161,120,612$ 175,544,360$ Expenditures 2018-19 2019-20 2020-21 Instruction 80,966,915$ 83,637,213$ 82,536,613$ Supporting Services: Students 8,055,457 8,473,557 9,472,770 Instructional Staff 9,864,643 10,569,236 11,923,502 District Administration 2,942,204 2,854,541 2,535,537 School Administration 7,178,006 7,753,544 8,217,857 Business 5,194,789 5,181,189 5,748,200 Operation and Maintenance of Buildings 11,883,835 13,450,470 13,963,297 Student Transportation 2,131,430 2,056,407 2,003,125 School Food Services 5,612,524 5,911,440 5,669,101 Community Services 1,836,912 1,822,447 2,018,448 Capital Outlay 18,702,786 5,610,588 12,603,144 Debt Service: Bond Principal 5,945,941 6,197,642 6,443,387 Bond Interest and Fees 3,912,626 3,677,095 3,438,719 Total Expenditures 164,228,068$ 157,195,369$ 166,573,700$ picture For the Year Ended June 30, 2021 8 Financial Informatfon—All Funds The Provo City School District Board of Educatfon went through a truth in taxatfon and approved a tax increase for this fiscal year which accounts for the increase in property tax revenue for this fiscal year. Regular local revenue contfnues to trend downward due to the interest rates in the Public Treasurers Investment Fund decreasing. State revenue went up due to an increase in the WPU (weighted pupil unit). The majority of state revenue is contfngent on the budgeted increase in the WPU (weighted pupil unit) and the district’s increase/decrease in students. The increase in state revenue is due to an in- crease in the amount of the WPU, not the enrollment in the district. Federal revenue showed the largest increase, primarily due to COVID-19 relief funding. Expenditures by Function FY21—All Funds (excluding Debt Service) In FY21, increases in expenditures across functfons were primarily due to increases in normal costs for salaries and benefits. The instructfon functfon de- creased slightly due to the decrease in purchased services in relatfon to eSchool. Expenditures for capi- tal outlay has increased significantly due to the con- structfon of Timpview High School. Voters approved a GO bond for the replacement in November 2020. The school board also approved a Municipal Building Authority bond for the replacement of two schools in October 2021. Other expenditures throughout the district remained relatfvely flat. Popular Annual Financial Report 9 Provo City School District Financial Informatfon—Property Taxes—All Funds Property taxes in the city of Provo are levied for four separate entftfes. Provo City School District, Provo City, Utah County and Central Utah Water Conservancy District all receive revenue from property taxes. Below shows the amount per dollar that goes to each entfty. While property taxes are fairly low for the other entftfes, they receive tax revenue from other sources in additfon to property taxes. Provo City School District 68% Provo City 21% Utah County 8% Ce n t r a l U t a h W a t e r 4 % Property tax rates are set every June unless the board sets a Truth in Taxatfon hearing in August of the current budget year. Levies are set for general operatfng, capital and debt service expenditures. Property valuatfons have increased significantly over the last eight years, which has kept the property tax rate relatfvely flat. Popular Annual Financial Report For the Year Ended June 30, 2021 10 Financial Informatfon—General Fund Revenues 2018-19 2019-20 2020-21 Property Taxes 31,310,666$ 33,046,806$ 37,861,708$ Other Local Sources 6,345,904 5,440,387 4,306,537 State of Utah 82,056,244 85,411,264 90,307,945 Federal 8,858,715 8,905,035 14,790,719 Total Revenues 128,571,529$ 132,803,492$ 147,266,909$ Expenditures 2018-19 2019-20 2020-21 Instruction 77,475,650$ 80,768,604$ 80,569,988$ Supporting Services: Students 8,055,457 8,473,557 9,338,445 Instructional Staff 9,898,593 10,550,190 11,866,384 District Administration 2,898,273 2,854,541 2,535,537 School Administration 7,178,006 7,718,485 7,918,849 Business 5,065,508 5,181,189 5,748,200 Operation and Maintenance of Buildings 9,474,167 9,683,180 13,956,836 Student Transportation 2,131,430 2,056,407 2,003,125 Food Services - 30,997 111,953 Capital Outlay 3,620,785 2,745,800 3,328,598 Community Services 531,780 381,596 208,730 Debt Service 9,020 - - Total Expenditures 126,338,669$ 130,444,546$ 137,586,645$ Student Support Services—this functfon covers social workers, health service providers, school counselors, and related supplies, contract services, and travel. Instructional Staff Support—this functfon covers professional de- velopment costs for teachers/staff, instructfonal coaches, technol- ogy support, media center specialists, and related supplies, con- tract services and travel. District Administration—this functfon covers the cost of district administratfon, i.e. superintendent, district directors that are spe- cific to district-wide admin, and related supplies, contract services and travel. School Administration—this functfon covers the cost of principals, assistant principals, and school administratfve secretarial staff, and related supplies, contract services and travel. Business—this functfon covers the cost of purchasing, personnel, business services, warehouse, public relatfons, administratfve technology, and related supplies, contract services and travel. Operation and Maintenance of Buildings—this functfon covers the cost of maintenance and cleaning of the district buildings. Student Transportation—this functfon covers all costs related to student transportatfon. Food Services—this functfon covers all costs related to feeding students at the District. Capital Outlay—this functfon covers all costs of major district projects Community Services—this functfon covers costs of actfvitfes benefitfng the community as a whole. Debt Service—this functfon covers costs related to principal and interest payments for general obligatfon bonds. Functfons within all funds are used to delineate expenditures and assign them to certain job functfons. The state re- quires the use of functfons to appropri- ately account for different types of ex- penditures to accurately reflect the goal of the expenditures. For example, the Instruction function is used to account for all classroom expenditures that are between teachers and students. Salaries, benefits, supplies, field trips, etc. are accounted for in the Instructfon functfon. Expenditures in the instructfon functfon trended downward slightly this year due to the decrease in purchased services in relatfon to the change in eSchool’s for- mat. Popular Annual Financial 11 Provo City School District Financial Informatfon—Debt Service School districts are not able to raise funds sufficient to build new or replace existfng buildings. General obligatfon bonds, guaranteed by property taxes, are districts’ only source of new “revenue” which can be used to provide those buildings. Lease revenue bonds can also be issued through the District’s Municipal Building Authority, but those payments are made with existfng District revenue. Municipal Building Authority bonds were approved by the Municipal Building Authority board in November 2021 for the building of two additfonal schools. Below is informatfon about bonds outstanding, as well as the District’s debt limit and debt margin. 2020 2020 2019 Estimated Fair Market Value 11,103,352,058$ 10,376,702,550$ 9,423,134,014$ "Fair Market Value" X 4% (Debt Limit)444,134,082 415,068,102 376,925,361 Outstanding balance General Obligation Debt 169,475,000 102,225,000 108,400,000 Debt Margin 274,659,082$ 312,843,102$ 268,525,361$ Series Purpose Original Amount Interest Rate Range Final Maturity Date Current Outstanding Balance 2015A Series G.O. Bonds Bond Refunding 22,790,000.00$ 2.13%June 15, 2027 13,305,000$ 2015 Series G.O. Bonds School Building 50,615,000.00$ 2.25% to 5%June 15, 2035 39,475,000 2016 Series G.O. Bonds School Building 50,650,000.00$ 2.00% to 5%June 15, 2036 43,025,000 2021 Series G.O. Bonds School Building 73,670,000.00$ 1.75% to 5%June 15, 2041 73,670,000 169,475,000$ New general obligatfon bonds were approved by voters in November 2020. Bonds were issued in May 2021 for the rebuild of the academic wing of Timpview High School. This project is well under way at the tfme of the publicatfon of this report. Two more schools are slated to be rebuilt in their entfrety startfng at the end of fiscal year 2022. Annual Financial For the Year Ended June 30, 2021 12 District Informatfon—Personnel Expenditures by Object (General Fund)2018-19 2019-20 2020-21 Salaries 68,227,167$ 72,260,522$ 78,778,602$ Benefits 31,468,509 32,868,802 34,470,630 Purchased Services 12,616,778 12,792,485 10,495,093 Supplies 8,795,785 8,079,652 10,538,004 Property 3,726,262 2,971,870 1,712,470 Other 1,504,168 1,471,215 1,591,846 Total Expenditures 126,338,669$ 130,444,546$ 137,586,645$ Salaries and benefits account for 82% of total General Fund expenditures. The increase in salaries and bene- fits is primarily due to the results of negotfatfons and the planned increase in medical insurance costs. FTEs in the District contfnue to increase even with the decrease in enrollment. Federal COVID-19 relief funds have allowed the District to retain teachers in order to keep class sizes small and provide additfonal social workers and instructfonal aides to help recover learn- ing loss due to the COVID-19 pandemic. The instruc- tfon functfon had the biggest increase between FY20 and FY21—52 FTEs. The total increase was 99 FTEs spread across all functfons. Popular Annual Financial Report 13 Provo City School District District Informatfon—Staffing Informatfon School districts throughout the United States are all dealing with the struggles of retaining effectfve teachers. Provo City School District’s teachers are well educated and we are seeing more teachers staying longer. More than half of our teachers have been teaching for longer than five years and more than a third of our teachers have at least a Masters Degree. The challenge the District faces now is to create a more competftfve wage for our educators. As seen in the comparison of teacher salaries be- low, our district has some work to do to remain competftfve with surrounding districts. Comparison of Utah School District Teacher Salaries FY20—Latest Data Available Popular Annual Financial Report For the Year Ended June 30, 2021 14 District Informatfon—Student Informatfon Everything that the District does is with one goal in mind— educatfng and caring for our students. Many students have shown a resiliency beyond our expectatfons through the COVID -19 pandemic. Although the educatfon process was a bit differ- ent than it had been in previous years, many students stfll ex- celled in their classes, their sports and their lives. Through the pandemic, our graduatfon rates contfnued to rise. There is stfll a lot of work to do to address learning loss for our younger students, but with our incredible staff, we know we will contfn- ue to excel in Provo City School District. 15 Provo City School District District Informatfon Provo City School District’s mission to provide opportunitfes for success for every student is a mission that envelops all departments, from Human Resources to Business Services to schools to each individual employee. All departments and staff create expectatfons to provide assistance in completfng that mission. The Popular Annual Financial Report of Provo City School District is meant to provide a high-level view of what the District is trying to accomplish in all different areas. Other informatfon about the District is provided on its website, www.provo.edu. Further financial informatfon is availa- ble in the District’s Annual Comprehensive Financial Report, along with the District’s Annual Budget report. Reports are available for this year and prior years at https://provo.edu/business-and-finance/financial-reports/. If you have any questfons, please contact Provo City School District at 801-374-4800 or send a request to the Office of the Business Ad- ministrator, Provo City School District, 280 West 940 North, Provo, UT, 84604.