DOUGLAS COUNTY SCHOOL DISTRICT RE 1

PROPOSED FINANCIAL PLAN AND BUDGET

FISCAL YEAR 2008-2009

EXECUTIVE SUMMARY

June 17, 2008

Presented to the Board of Education

Castle Rock, Colorado

Table of Contents

Douglas County School District Re. 1

Executive Summary

Principal Officials........................................... ................... ..... 7

Board of Education........................................ ................... ..... 8-9

Superintendent’s Letter ................................ ................... ..... 10

Excerpt’s from Annual Report 1959 .............. ................... ..... 11-12

Budget Department Staff............................... ................... ..... 13

Mission, Core Values and Governance......... ................... ..... 14

Key End Statments........................................ ................... ..... 15

Overview of Revenues and Expenditures by Fund........... ..... 16-17

Budget in Context.......................................... ................... ..... 18

Budget Development Process....................... ................... ..... 18

General Fund Overview ................................ ................... ..... 18

District Financial Position .............................. ................... ..... 19

Revenues ...................................................... ................... ..... 19-21

Student Growth and Enrollment.................... ................... ..... 22

Borrowings, Capital Projects and Operational Impacts..... ..... 23-24

Expenditures ................................................ ................... ..... 25

Employee Benefits ........................................ ................... ..... 26

Student Based Budgeting ............................. ................... ..... 27

District Investment Policy .............................. ................... ..... 27

Other Funds Overview .................................. ................... ..... 28-29

Staffing and Compensation........................... ................... ..... 30-32

Budget Process Calendar FY 2008-2009 .... ................... ..... 34-35

General Fund Five Year Projection............... ................... ..... 36-39

General Fund Fund Balance History............. ................... ..... 40

General Fund Staffing Summary................... ................... ..... 41

General Fund Revenues ............................... ................... ..... 42-43

General Fund Expenses ............................... ................... ..... 44-45

General Fund Summary................................ ................... ..... 46

Other Funds Budgets

Debt Services Fund.................................. ................... ..... 49

Building Fund ........................................... ................... ..... 50

Capital Reserve Fund .............................. ................... ..... 51

Governmental Designated-Special Revenue Fund...... ..... 52-53

School Discretionary Fund....................... ................... ..... 54

Nutrition Services Fund............................ ................... ..... 55

Child Care Fund ....................................... ................... ..... 56

Private Purpose Trusts Fund ................... ................... ..... 57

Pupil Activity Fund.................................... ................... ..... 58

Medical Self-Insurance Fund ................... ................... ..... 59

Insurance Reserve Fund.......................... ................... ..... 60

Athletic and Activities Fund...................... ................... ..... 61

Mill Levy Override Fund ........................... ................... ..... 62

Charter Schools........................................ ................... ..... 64-71

Financial Plan and Budget for Fiscal Year 2008-2009 Executive Summary

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EXECUTIVE

SUMMARY

DOUGLAS COUNTY SCHOOL DISTRICT, Re. 1

Colorado

PRINCIPAL OFFICIALS

Board of Education

Kristine Turner……...……………………………….

President

Emily Hansen..…..……………………………….….

Vice President

Ryan J. Stuart…...……………………………….….

Director

John Carson…..….…………………………….…...

Director

Clifton Stahl...…..….………………………………..

Director

Timothy L. White…….……………………….….….

Director

Justin G. Williams….…………………………….….

Director

David Hart….……………………………….…….….

Treasurer

Nona Eichelberger..……………………….…….….

Secretary

Anita Gregg..……………………………….…….….

Assistant Secretary

Members of Superintendent’s Cabinet

Bill Hodges.............................................

Assistant Superintendent of Human Resources

Annette Fante ........................................

Assistant Superintendent of Learning Services

David Hart ..............................................

Chief Financial Officer

Dr. Steve Herzog ...................................

Chief Operating Officer

Pat McGraw ...........................................

Chief of Staff

Darci Mohr .............................................

Staff Counsel

Whei Wong ............................................

Director of Communications

Randy Weldon .......................................

Chief Information Officer

Brenda Smith .........................................

Douglas County Teacher Representative

Tiffany Osland........................................

Douglas County Classified Representative

Gary Schweers ......................................

Douglas County ATU Representative

Anita Gregg............................................

Administrative Assistant to the Superintendent

Nona Eichelberger .................................

Secretary to the Board of Education

Dr. Jim Christensen - Superintendent

Board of Education 2008-2009

Timothy L. White

Director

Term Expires 2009

Emily Hansen

Vice President

Term Expires 2009

John Carson

Director

Term Expires 2009

Justin G. Williams

Director

Term Expires 2011

Clifton Stahl

Director

Term Expires 2011

Kristine Turner

President

Term Expires 2009

Ryan J. Stuart

Director

Term Expires 2011

The Douglas County School District is organized and focused to meet the needs of

approximately 58,000 students and manage 75 schools. Seven elected Board of

Education members, who are elected to four-year terms, govern the District.

Douglas County School District

Board of Education Director Districts

Director District E

Kristine Turner

Buffalo Ridge Elementary

Eagle Ridge Elementary

Fox Creek Elementary

Legacy Point Elementary

Lone Tree Elementary

Redstone Elementary

Renaissance School

Timber Trail Elementary

Wildcat Mountain Elementary

Rocky Heights Middle School

Rock Canyon High School

Director District D

Timothy L. White

Castle Rock Elementary

Cherry Valley Elementary

Clear Sky Elementary

Flagstone Elementary

Larkspur Elementary

Meadow View Elementary

Rock Ridge Elementary

Soaring Hawk Elementary

South Street Elementary

Castle Rock Middle School

Mesa Middle School

Castle View High School

Douglas County High School

Director District B

John Carson

Copper Mesa Elementary

Coyote Creek Elementary

Roxborough Primary

Roxborough Intermediate

Sedalia Elementary

Stone Mountain Elementary

Mountain Ridge Middle School

Mountain Vista HighSchool

Plum Creek Academy

Director District C

Clifton Stahl

Acres Green Elementary

Arrowwood Elementary

Cougar Run Elementary

Heritage Elementary

Summit View Elementary

Cresthill Middle School

Highlands Ranch High School

Director District A

Ryan J. Stuart

Bear Canyon Elementary

Eldorado Elementary

Northridge Elementary

Sand Creek Elementary

Trailblazer Elementary

Ranch View Middle School

ThunderRidge High School

Director District F

Justin G. Williams

Franktown Elementary

Frontier Valley Elementary

Gold Rush Elementary

Iron Horse Elementary

Mountain View Primary

Northeast Intermediate

Pioneer Elementary

Cimarron Middle School

Sagewood Middle School

Legend High School

Ponderosa High School

Director District G

Emily Hansen

Cherokee Trail Elementary

Mammoth Heights Elementary

Pine Grove Elementary

Prairie Crossing Elementary

Pine Lane Intermediate

Pine Lane Primary

Sierra Middle School

Chaparral High School

July 1, 2008

Members of the Board of Education, Citizens and District Staff:

As Superintendent of Douglas County School District, I am pleased to present this budget document to our

partners, which includes parents, community members, business owners and legislators. Our budget process

has a long standing tradition of being sound, prudent and inclusive of community input. Financial accountability is

critical in operating a school district, and we are deeply committed to conservatively managing resources to

maintain excellence in our schools. You have a right to know that the District takes its fiduciary responsibilities to

taxpayers very seriously.

Our District, the third largest school district in Colorado, continues to be one of the fastest growing serving more

than 58,000 students. While Douglas County School District is fortunate to experience student enrollment

growth, the challenge remains: there are inadequate dollars to fund all requests. Unlike many neighboring

districts whose enrollment numbers are either stagnant or dropping, intense growth means the District is in a

constant state of constructing new schools, renovating older facilities, hiring additional staff and adjusting to meet

student needs and demands. Through it all, as an organization, we have worked very hard to channel more

resources to schools even though funding increases from the state are minimal.

The cost of doing business is going up now more than ever before. Douglas County School District has managed

to stretch every dollar in order to continue to find innovative ways to push student learning forward. Through

energy efficient prototypical building designs and intensive resource management, the District has expended

scarce capital resources to maximize efficiencies. Thanks to local voter override support, the District has recently

planted the seeds for providing World Languages at every level (elementary, middle and high school), improved

reading intervention programs for struggling readers and is now expanding Career and Technical education

opportunities for secondary students. We know public education must prepare students not only for post-

secondary education, but also the world of work. Without additional local voter support, maintenance of the

current high performing system is in jeopardy and improvements nearly impossible.

This year the budget office earned significant recognitions from the Association of School Business Officials and

Government Finance Officers Association of the United States and Canada once again. The Board of Education

continues its requirement to maintain a five percent General Fund balance (two percent more than what is

mandated by the TABOR Amendment), which further supports our attention to fiscal responsibility.

The 2008-09 budget reflects our commitment to the effective use of resources. Our desire is to expand

programming for students and maintain high student achievement. The Board of Education will likely seek

additional override funding for operations and bond funding for building and maintaining schools to keep up with

growth. If you have budget questions, or comments, contact me at 303.387.0123, or our Budget Office at

303.387.0013.

Sincerely,

Dr. James S. Christensen

Superintendent

Jim Christensen

Superintendent

620 Wilcox St. | Castle Rock, CO 80104 | 303.387.0123

| 303.387.0107

fax

| www.dcsdk12.org

Excerpt’s from

Superintendent’s Annual Report

to the people

of Douglas County School District Re 1

April 30, 1959

Foreword

As the Douglas County Schools near the close of the first year under re-

organization, certain statistical and general information may prove of sig-

nificant interest to the citizens to merit summary in this annual report.

All over the nation public schools are facing difficult problems in

teacher recruitment, finance, and adequate space. Our district is no excep-

tion.

Citizen interest is an absolute necessity for a successful school. Con-

structive criticism will lead to improvement...destructive criticism can only

disrupt progress and provoke inefficiency.

The school administration invites you to call or drop in at any time to

discuss this district’s educational problems. A school is as good or bad as

the people of the district insist it will be. How good are the Douglas

County schools to be? It is up to all of us.

School Budget and Finance

There is no greater responsibility of a school board or administration

than to see that the monies available to them are spent for the optimum edu-

cational advantage of the children of the district.

Lowell Baumunk

Superintendent

Douglas County School District Re 1

DOUGLAS COUNTY SCHOOL DISTRICT RE 1

BOARD OF EDUCATION

1958—1959

Dr. H. R. Gannon Castle Rock President

Ed Rodine Parker Vice-President

Emery Larreau Franktown Treasurer

Dr. W. G. Duncan Sedalia Secretary

Darrell Bell (resigned) Larkspur Secretary

Willis Buboltz Castle Rock Member

Frank Fenton Lourviers Member

Excerpt’s from

Superintendent’s Annual Report

to the people

of Douglas County School District Re 1

April 30, 1959

COMPARATIVE SCHOOL DISTRICT TAX DATA

District Valuation

Total School Levy

Adams County #1 $ 36,312,660 35.66 mils

Cherry Creek $ 25,113,021 46.18 mils

Denver $1,070,893,790 31.05 mils

Douglas County Re 1 $ 13,622,914 27.50 mils

Jefferson County $ 171,886,190 43.13 mils

Littleton $ 33,097,910 49.80 mils

Douglas County

school teachers are

receiving average

salaries of $3,861 this

school year and will

get an average of

$4,276 with our new

salary schedule dur-

ing 1959-1960.

TOTAL

ENROLLMENT

1,131 students

DISTRICT BUDGET 1958-59

Administration $ 18,000

Instruction 281,500

Pupil Transportation 76,000

Operation of Plant & Equip 37,500

Maintenance of Plant & Equip 44,000

Fixed charges 29,500

Food Service 5,000

Student-Body Activities 2,000

Capital Outlay 50,000

Contingency Reserve 47,500

GRAND TOTAL EXPENDITURES $591,000

Budget Department Staff 2008-2009

Shelley Becker

Budget Director

Jon Kvale

Budget Analyst

John Waltrip

Budget Analyst

Bruce Zimney

Budget Analyst

Rose Ann Bridgers

Budget Specialist

Left to right: Bruce Zimney, Rose Ann Bridgers, Jon Kvale, Shelley Becker and John Waltrip

Mission Statement

The vision of the Douglas County School District is to help students acquire the knowledge and

abilities to be responsible citizens who contribute to our society.

MISSION, CORE VALUES AND GOVERNANCE

Core Values

Educational Excellence

Human Diversity

Continuous Improvement

Ethical Behavior

Shared Responsibility

Productive Effort

Individual Potential

Lifelong Learning

•

BOARD’S PURPOSE

On behalf of the

citizens of Douglas County School

District, the purpose of the Board of

Education is to assure that the District (a)

achieves appropriate results for

appropriate persons at an appropriate

cost, and (b) avoids unacceptable

actions and situations.

•

BOARD/SUPERINTENDENT LINKAGE

The Board’s sole, official connection to

the operational organization of the

District, its achievement and conduct is

through the District’s chief executive

officer (CEO), titled “Superintendent.”

•

END STATEMENTS:

Douglas County

School District students acquire the

knowledge and abilities to be responsible

citizens who contribute to our society.

•

EXECUTIVE LIMITATIONS

The

Superintendent shall not cause or allow

any practice, activity, decision or

organizational circumstance that is

unlawful, imprudent or in violation of

commonly accepted business and

professional ethics.

BOARD OF EDUCATION

POLICY GOVERNANCE

Learn today. Lead tomorrow.

Board of Education End Statement

Douglas County School District students acquire the knowledge

and abilities to be responsible citizens who contribute to our

society.

1.1 Students are able to think critically, using reason and logic when facing decisions about

what to believe or do.

1.2 Students embrace universal ethical principles such as honesty, integrity and justice.

1.3 Students demonstrate the self-motivation and resourcefulness to continue their

learning.

1.4 Students apply what they have learned. They go beyond merely knowing to using their

knowledge and skills productively.

1.5 Students develop and demonstrate Leadership skills. They are influential in creating

a vision of what the future can be.

1.6 Students take ownership and accept responsibility for their wellbeing. Students have

the knowledge, skills and ability to make educated choices concerning their social,

emotional and physical health.

1.7 Students demonstrate the essential skills of reading, writing, listening, speaking and

numeracy.

1.8 Students have an understanding of a core body of knowledge in:

Science

Information Literacy

Social Studies

World Languages

Literature and “Great Works” Across All Content Areas

Physical Education and Health

Personal Business and Finance

Math

1.9 Students are exposed to the fine arts.

1.10 Students explore chosen areas beyond the liberal arts foundation that may expand

future opportunities.

The

Financial Plan and Budget for Fiscal Year 2008-2009

of the Douglas County School

District Re. 1 (the “District”) provides an overview of the financial plans and budgets for the

respective funds of the District.

Note, throughout the 2009 Budget, per-pupil revenue calculations are based upon a funded

pupil count (“FPC”). The FPC in fiscal year 2007-2008 (“FY’08”) was 49,694.5. For fiscal year

2008-2009 (“FY’09”) the Budget’s FPC is 56,331 (this includes 52,081 for regular District

students and 4,250 for online students). Note, when calculating the District’s FPC,

kindergarten children count as 0.58 funded pupils due to their half-day classes. The State is

working towards increasing funding for full day kindergarten programs over a multi-year period.

The 2009 Budget estimates total revenues of all District funds for FY’09 to be $625,602,649

The table below summarizes total budgeted revenues by the respective funds.

OVERVIEW OF REVENUES AND EXPENDITURES BY FUND

2007 Alloc Percent of 2008 Alloc Percent of

Fund Budget Per Pupil Budget Budget Per Pupil Budget

General Fund 393,379,185

$ 7,916

$ 64.1% 449,242,880

$ 7,975

$ 71.8%

Debt Service/Bond Redemption Fund 58,727,041

1,182

9.6% 60,950,324

1,082

9.7%

Building Fund 59,000,000

1,187

9.6% 3,500,000

0.6%

Capital Reserve Fund 13,318,211

268

2.2% 12,264,919

218

2.0%

Govtl Designated Purpose Grant Fund 10,578,536

213

1.7% 11,105,690

197

1.8%

School Discretionary Fund 2,503,253

0.4% 2,947,234

0.5%

Nutrition Services Fund 11,055,348

222

1.8% 13,016,653

231

2.1%

Child Care Fund 7,520,157

151

1.2% 9,787,771

174

1.6%

Private Purpose Trusts 85,000

0.0% 100,000

0.0%

Pupil Activity Fund 3,300,000

0.5% 3,359,000

0.5%

Medical Self-Insurance Fund 34,451,000

693

5.6% 40,479,113

719

6.5%

Insurance Reserve Fund 3,327,500

0.5% 2,722,875

0.4%

Athletics and Activities Fund 11,229,960

226

1.8% 11,126,190

198

1.8%

Mil Levy Override Fund 5,000,000

101

0.8% 5,000,000

0.8%

TOTAL 613,475,191

$ 12,345

$ 100.0% 625,602,649

$ 11,106

$ 100.0%

FY'09

REVENUES BY FUND

FY'08

The 2009 Budget estimates total expenditures of all District funds for FY’09 to be

$721,338,044. The table below summarizes the total budgeted expenses for each District

fund.

In the instances where a fund’s expenditures exceed revenues, the additional monies being

allocated depict the intentional draw-down of such fund’s FY’09 Beginning Fund Balance which

is required each year by Board of Education Resolution. In such instances, the fund’s FY’09

Ending Fund Balance is above all statutory and District limitations for a minimum year-end

balance and does not create an on-going deficit.

OVERVIEW OF REVENUES AND EXPENDITURES BY FUND

Cont..

2007 Alloc Percent of 2008 Alloc Percent of

Fund Budget Per Pupil Budget Budget Per Pupil Budget

General Fund 405,284,736

$ 8,155

$ 58.1% 451,390,619

$ 8,013

$ 62.6%

Debt Service/Bond Redemption Fund 55,847,665

1,124

8.0% 60,824,228

1,080

8.4%

Building Fund 125,652,965

2,528

18.0% 93,889,601

1,667

13.0%

Capital Reserve Fund 20,482,736

412

2.9% 13,502,251

240

1.9%

Govtl Designated Purpose Grant Fund 10,763,653

217

1.5% 11,290,810

200

1.6%

School Discretionary Fund 2,021,600

0.3% 2,603,427

0.4%

Nutrition Services Fund 10,898,500

219

1.6% 13,005,249

231

1.8%

Child Care Fund 7,520,157

151

1.1% 10,183,606

181

1.4%

Private Purpose Trusts 82,300

0.0% 82,800

0.0%

Pupil Activity Fund 3,075,900

0.4% 3,000,000

0.4%

Medical Self-Insurance Fund 35,912,923

723

5.1% 40,479,113

719

5.6%

Insurance Reserve Fund 3,881,546

0.6% 3,833,730

0.5%

Athletics and Activities Fund 11,229,960

226

1.6% 11,276,190

200

1.6%

Mil Levy Override Fund 5,000,000

101

0.7% 5,976,420

106

0.8%

TOTAL 697,654,641

$ 14,039

$ 100.0% 721,338,044

$ 12,805

$ 100.0%

FY'09

EXPENDITURES BY FUND

FY'08

2008-2009 BUDGET IN CONTEXT

Colorado’s school finance act distributes state and local dollars to the State’s school districts

for K-12 public education. These monies are allocated under the “Public School Finance Act of

1994” and may be annually amended by the most recent school finance bill. Funding to school

districts is based on a per-pupil formula. For each pupil funded, the formula provides a base

per-pupil amount of money plus additional money to recognize district-by-district variances in:

(a) costs of living, (b) personnel costs, and (c) sizes. The amount also includes additional

funding for at-risk pupils. For FY ’09, the district is to receive $6,646 per funded pupil.

The School Finance Act requires a district’s board of education to adopt their FY 2008-2009

budget by June 30, 2008. Accordingly, the Douglas County School District’s Board of

Education (the “Board”) formally adopted the 2008-2009 Budget on June 17, 2008. In

recognition that in any given year a budget adopted in June is based upon projected pupil

enrollment counts — which dictate school finance funding until the actual October 2008 counts

are processed — state law provides for and envisions districts changing their June-adopted

budget to reflect a district conducting an October pupil count. For the 2008-2009 Budget the

projected funded pupil count (Pre K-12) is 56,331 students. Under the School Finance Act,

any changes to a district’s budget must be finalized and approved by the Board of Education

by December 31, 2008.

BUDGET DEVELOPMENT PROCESS

Budget preparation starts the preceding fall with a preliminary budget for the succeeding year.

Enrollment forecasts are completed by year-end and then used to revise projected revenues,

staffing needs, and school / department funding allocations. Completed budget request forms

are due in March. Budget office staff then review requests, tabulate requested needs, review

and revise the five-year financial impacts of funding requests and make recommendations to

District administration. Upon final Board approval, budget office staff load budget information

into the District’s financial systems to begin the new fiscal year. As stated previously, state law

provides for and envisions districts changing their June-adopted budget to reflect a district

conducting an October pupil count. If a district elects to do so, a revised financial plan is to be

adopted by December 31.

GENERAL FUND OVERVIEW

The FY 2008-2009 Budget estimates the total available dollars of the General Fund to be

$473.7 million. The total available dollars are comprised of: an estimated Beginning Fund

Balance of approximately $24.5 million and operating revenues of $449.2 million. General

Fund budgeted expenses total $451.4 million. Budgeted expenditures include $3.9 million for

contingent expenses. This amount is made up of $2.1M restricted for full day kindergarten

programming, $850,000 for general operating expenditures and $900,000 reserved for

schools. The FY 2008-2009 Budget also transfers General Fund monies to the Capital

Reserve and Insurance Reserve Funds in the amounts of $11.6 million and $2.7 million,

respectively. The FY 2008-2009 Budget’s General Fund projected ending fund balance is

$22.3 million, which equates to 5.0 percent of the total General Fund revenues, surpassing the

3% TABOR requirement.

District Financial Position

Douglas County continues its decades-long experience of extraordinary population growth. For

purposes of crafting the 2008-2009 Budget, the District estimates 56,331 funded pupils (Pre K-

12). In just seven years, since October 2001, the district has enrolled approximately 18,500 new

students. Over the past twenty plus years — when in 1984 there were 8,427 students — voters

have shown their support for the district by approving seven separate bond elections to finance

capital improvements. In addition, four separate budget overrides (1989, 1997, 2003 and 2006)

were passed to provide the additional financial resources required to operate the schools.

Budget projections indicate that in order for the District to continue to accommodate the inflow of

students and maintain the customary high levels of student achievement the community expects,

finances will continue to be stretched. The District is conservatively managed and maintains best

financial practices. Consequently, the District currently has a Aa2 credit by Moody’s and a AA

by Fitch, which are nationally recognized bond rating agencies. The District’s prudent

management and strong bond rating enables them to keep borrowing costs as low as possible.

Revenues

To provide for a child’s education, various revenues constitute the total of a school district’s

operating revenues. The District’s General Fund receives revenues from state and local

sources. The majority of the District’s total revenue — at 84% — becomes available to the

District through the School Finance Act. Based upon a District’s October pupil count, the School

Finance Act provides funding through local property taxes, specific ownership taxes and state

equalization.

Property taxes have always been a source of financial support for K-12 public schools.

However, given the provisions of various amendments to Colorado’s Constitution over the last

23 years (Gallagher in 1982; TABOR in 1992 and Amendment 23 in 2000) on a state-wide basis,

the state’s percentage share has grown from just over 40% to greater than 60%. While

Gallagher and TABOR were a conscious effort to hold down property taxes, the trade-off has

been added pressure on the state to meet the growing costs of school finance. Compounding

this pressure, Amendment 23 requires certain increases to per pupil funding of schools. Under

the School Finance Act, state aid makes up the difference between total funding and the amount

available from local sources. Since funding for schools must increase (Amendment 23) and the

local share is essentially fixed (Gallagher and TABOR), the difference in funding comes from

state sources. Illustrative of the State’s increasing burden pursuant to the School Finance Act,

the District’s data is presented below:

CY 1989 Actual

FY 1998-99 Actual

FY 2008-09 Budget

State Share (%) 42.30% 51.20% 58.65%

Local Share (%) 57.70% 48.80% 41.35%

State Aid per Pupil ($) $ 1,552

$ 2,294

$ 3,898

Local Aid per Pupil ($)

$ 2,117

$ 2,186

$ 2,748

Total per Pupil Revenue ($)

$ 3,669

$ 4,480

$ 6,646

District revenues can also be divided into:

Local

Tax Revenues

Intergovernmental Reve-

nues

, and

Other Local Revenues

. The District’s

Tax Revenues

are principally derived from

Property Tax and Specific Ownership Tax receipts. For instance, FY 2008-2009 Property

Taxes are calculated by applying the forecasted December 2008 mil levy upon the 2008 as-

sessed valuation of residential and commercial property within the district. Specific Ownership

Tax Revenue for FY 2008-2009 is estimated at $20.6 million.

The largest portion of

Intergovernmental Revenues

are the School Finance Act dollars

allocated by the Colorado General Assembly. Pursuant to the School Finance Act, for FY

2008-2009 the District’s total program funding on a per-pupil basis is projected to increase to

$6,646, which is a 3.6% increase in the base per-pupil amount over FY 2007-2008. The

State’s portion of School Finance Act revenues is projected to be $240.8 million (excluding

Property and in-formula Specific Ownership Tax revenues).

General Fund Revenues by Type

$177,681,485

$19,581,468

$251,979,928

Tax Revenues

Intergovernmental

Other Local Revenues

Other Intergovernmental revenues are primarily derived from the state’s categorical program

funding which also increases based upon the rate of inflation plus 1% pursuant to A-23. Such

funds are in addition to School Finance Act funding. These dollars are for specific programs

designed to serve a select group of students or certain student needs. The District receives

categorical funding for: English Language Proficiency Education, Gifted and Talented Educa-

tion, Special Education, Transportation and Vocational Education. Total revenue for these

programs is budgeted at $11.6 million for FY 2008-2009.

Other Local Revenues

total $19.6 million. Other Local Revenues are comprised of District-

imposed Charges-for-Services, various third-party contributions and donations, and Transfers-

In in addition to interest earnings. Examples of Charges-for-Services include: rentals, fees for

transportation or instructional materials and tuition.

District Mil Levy

(Per $1,000 of AV)

2008 Budget

2009 Budget

Mil Certified, December:

2007

2008

Property Taxes Collected:

2008

2009

Program Funding including

Abatements & Omitted Property

25.440

0.215

25.440

0.215

Overrides (‘89,‘97, ’03 & ‘06)

8.319

6.885

Bond Redemption

12.526

13.960

Total Mil Levy

46.500

Total Assessed Value

$4,412,063,598

$4,889,179,198

Student Growth and Enrollment

Student growth remains an important factor in FY 2008-2009, and for the District’s long-term

future. Total pupil enrollment (Pre K-12) is expected to be 58,962 total students, calculating to

be 56,331 funded pupils. Based on current projections, the District is expected to grow to a

total enrollment over 60,000 by the 2009-2010 school year.

For FY 2008-2009, Hope Online Learning Academy will become a Douglas County School

District Charter School. Hope Online offers K-12 instructional services to a diverse student

population through 67 Learning Centers. Learning Centers are authorized by Hope Online to

operate within local communities and educate students using online curriculum. It is projected

that Hope Online Learning Academy will have a total student enrollment of 4,500 with a funded

pupil count of 4,250, (which is included in the District’s enrollment figures).

This increased enrollment, as well as future expected growth requires new schools. The

District’s planning process begins with the District’s Long Range Planning Committee

(“LRPC”). The LRPC was established in 1983 as an advisory body to the Board of Education.

The LRPC’s purpose is to evaluate growth trends within the District and make

recommendations to District leadership regarding existing facilities, remodeling and

construction of new facilities. LRPC members will, from time to time, make recommendations

about the timing and dollar amount for bond elections, school boundaries, calendar changes

and other actions which aid in accommodating the enrollment influx into Douglas County

Schools.

Consisting entirely of volunteers, LRPC members are asked to serve for three years, with

about one-third of the committee changing each year. In 2005-2006, LRPC became a

committee of the Board of Education.

New school openings for FY 2008-2009

Clear Sky Elementary School (Castle View HS Feeder)

Gold Rush Elementary School (Legend HS Feeder)

Mesa Middle School (Douglas County HS Feeder)

Legend High School (Legend HS Feeder)

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Douglas County School District Enrollment

Total Pupil Count

Funded Pupil Count

Overview

The District issues general obligation (“GO”) bonds and certificates of participation (“COP”) to

provide funds to implement the District’s capital improvements program including construction

of new schools, additions, renovations and repairs to existing facilities and the acquisition of

related equipment. GO Bond proceeds are accounted for within the Building Fund. COP

proceeds are accounted for within the Capital Reserve Fund. In addition, the District’s Capital

Reserve Fund is funded by a per-pupil allocation of General Fund monies as specified by the

School Finance Act; in 2008-2009 the transfer equates to $298 per student.

Short Term Borrowings

The District is authorized by statute to borrow in anticipation of the receipt of property tax

revenues during the fiscal year, provided that such borrowing is liquidated before the end of

the fiscal year.

The District participates in the state’s Interest-Free Cash Loan Program under which the State

Treasurer makes loans available to offset the District’s general fund cash deficits before

property tax receipts are available in the spring. Under this program the State Treasurer

issues tax and revenue anticipation notes on behalf of school districts. The District drew-down

$50 million of these funds from the 2005-2006 program, which were in turn paid back in full in

May 2006. For 2008-2009, the Board of Education has authorized the district to borrow up to

$81M in the State Treasurer’s Interest Free Loan Program.

Long Term Borrowings

The District has $659,109,745 outstanding in principal amount of long term general obligation

indebtedness. The state constitution provides that the state legislature establish limitations on

the authority of any political subdivision to incur general obligation indebtedness in any form.

Based upon the District's 2007 certified assessed valuation of $4,889,179,198, the District's

current debt limit (at 20% of the latest valuation for assessment) is $913,954,383; at present

the district has $254,844,638 in unused debt capacity.

The District issued Certificates of Participation for $5.075 million in 2003-2004 to purchase a

facility to house Daniel C. Oakes High School (a District alternative high school), the District

Media Center and to purchase 30 school buses. Future debt payments of $4.0 million are

included in the Capital Reserve Fund, with an annual repayment amount of $463,000.

In November 2003, District voters authorized the issuance of $100,000,000 of general

obligation bonds to pay the cost of renovating five facilities and construction of four new

schools. Projects funded from these proceeds are expected to be completed by 2008. The

completion of these projects will add capacity to the District’s facilities for approximately 6,100

additional students.

On September 7, 2006 the District issued Certificates of Participation (COP) in the par amount

of $13,830,000 and a reoffering premium of $290,470 with interest rates ranging from 4% to

4.75%. The net interest cost is 4.29% on a term of 15 years. The proceeds are to be used for

the construction of an elementary school located in the City of Lone Tree in the Heritage Hills

subdivision and a road to Mesa Middle School in the Town of Castle Rock. The cost of the

road is to be reimbursed by the developer of the area by September 2009.

BORROWINGS, CAPITAL PROJECTS AND OPERATIONAL IMPACTS

Capital Projects

Future District needs for capital improvements, vehicles and equipment outpace available

funding in the Capital Reserve Fund. The District has developed a facility and improvement

needs plan through the year 2020. Planning is ongoing for future bond elections on a three to

four year schedule.

Operational Impact

With the opening of five schools in 2003-2004, the District saw a drawdown of its general

operations’ fund balance to support the inefficiencies of lower enrolled schools. In the past

ten years, the District has opened nineteen elementary schools, five middle schools and four

high schools. Future openings will continue to have an impact on the operational budget and

its fund balance. With the need to hire additional teachers in an environment characterized by

competitive salary pressures, the ever-increasing costs of employee benefits and rising

operational costs in student assessment and increased utilities, the growth in students alone

is not enough revenue to support the increased costs of opening schools. Consequently, the

District continues to explore cost-containment measures and the development of new revenue

streams while also assessing service standards.

On August 24, 2006 the District issued General Obligation Refunding Bonds, Series 2006A in

the par amount of $44,115,000 to refund a portion of the General Obligation Refunding Bonds,

Series 1996 in order to achieve interest rate savings. Interest rates range from 4% to 5%,

payable semiannually, principal payable annually beginning in June 2007. The final payment

is due in December 2016.

In November 2006, District voters authorized the issuance of $200,000,000 of general

obligation bonds to pay the cost of renovating ten existing facilities, construction of six

elementary schools, one middle school, an addition to an existing high school to provide a

Career/Technical education program, an early childhood center, a stadium and various repairs

to existing facilities. At the same election, voters approved $5,000,000 annually to fund a

World Language Program and additional discretionary funds for schools. In December of 2006

the District issued $150,000,000 of the $200,000,000 authorized, with the remaining

$50,000,000 to be issued in December of 2007.

In November 2007, the District issued General Obligation Improvement Bonds, Series 2007A

in the amount of $50M and General Obligation Refunding Bonds Series 2007B in the amount

of $13,945,000. Proceeds from the Bonds will be used to implement a portion of the District’s

capital improvements program, in addition to refunding a portion of the District’s Outstanding

General Obligation Bonds, Series 1999.

Expenditures

Salaries and Staffing

Through a formalized staffing process, school certified and classified positions are distributed

based on projected student enrollment for FY 2008-2009.

Note: Special education teachers and mental health staff positions are based on needs at

various levels of service required by special needs students. The certified staffing ratio listed is

not used to calculate the number of certified staff for these positions.

Grades

FY ‘07

Staffing

Allocation

FY ‘08

Staffing

Allocation

FY ‘09

Staffing

Allocation

Kindergarten (0.58 FTE)

1:23

Primary Grades 1 - 3

1:23

Intermediate Grades 4 - 6

1:26

Middle Grades 7 - 8

1:19.5

High School Grades 9 - 12

1:20.5

FPC K-12

47,363

50,063

56,331

RECOMMENDED STAFFING RATIO

GF Expenses by Objects

14%

11%

60%

Salaries $268,097,906

Benefits $65,435,534

Operating $41,435,337

Charter $48,402,016

Transfers $24,083,482

Contingency $3,936,344

Contingency

consists of $2.1M for Kindergarten Program,

$850K for General Operating and $900K for schools.

Employee Benefits

Many employers (and their employees) view pay apart from benefits, ever-increasing health

care costs have forced both parties to view each as dependent parts of a total compensation

package. The nature and cost of benefits have undergone several changes while preparing for

the FY 2008-2009 school year. The District has experienced increases in costs associated

with health care and benefit costs as have other employers throughout the metro area.

Capturing the Board-approved recommendations of the District’s Health Insurance Committee,

the 2008-2009 Budget provides for funding the following changes over FY 2007-2008

premiums: a 12.1% cost increase for both Cigna medical and Kaiser medical and no increase

in Delta Dental and vision. If an individual employee selects the highest costing coverage

offered by the district (for medical, dental and vision) the maximum dollar contribution paid by

the district equates to $503.29 per employee per month. For such an employee, the $503.29

equates to 100% of the cost of coverage for medical, dental, and vision. The $503.29 is the

maximum contribution regardless of which type of coverage is selected (i.e., medical and/or

dental and/or vision), the nature of the coverage (i.e., HMO vs. PPO), or the level of coverage

(i.e., single vs. family). If an employee has one or more dependents, the cost of the coverage

goes up; however, the district’s contribution remains fixed at $503.29 and the employee pays

the additional premium.

The percent of an employee’s PERA eligible salary paid by the District remains at 12.05% until

January 2009 when it increases to 12.95%, which is a .9% change from FY 2007-2008. This

increase is due to recently passed legislation mandating an additional employee contribution

of .5%. Annual increases for PERA will occur until the rate reaches 16.55% in January 2013.

District-Paid Benefits per One, Full-time Equivalent Position

Public Employees Retirement Association 12.05% of PERA eligible salary

Long-term Disability Upon 90 days disability, 60% of salary to $6,000/m max. @ .18% of salary

Life & AD&D – Teachers and Classified Staff $50,000 coverage @ $.10 per $1,000 of coverage

Life & AD&D – Administrators / Professional 3 times salary up to $200,000 coverage @ $.10 per $1,000

Benefits Plan – Medical, Dental, Vision and Other (based on 1.0 FTE employee coverage)

Teachers Up to $503.29 per employee per month

Classified Staff Up to $503.29 per employee per month

Prof/Tech Staff Up to $503.29 per employee per month

Administrators Up to $503.29 per employee available per month

Other District-Paid, Compensation-Derived Expenses

Medicare 1.45% of Medicare eligible salary

(This is in addition to Federal and State Income Taxes. The District and its employees do not pay into Social Security.)

Beginning January 2008, per Colorado State law, the district will contribute .50% to PERA of PERA eligible salary for

employee contribution.

1. U.S. Treasury Obligations

2. Federal Instrumentality Securities

3. Prime Commercial Paper issued on U.S. companies

4. Eligible Bankers Acceptances

5. Repurchase Agreements

Student Based Budgeting

From the General Fund, District-operated schools are allocated a per pupil dollar amount

based upon the formula presented in the table below. Individual schools use these dollars for

Certified Staff, Classified Staff, Supplies and Materials. Schools base their budgets on

historical figures, through input from District staff and school advisory councils. Student Based

Budgeting began in FY ‘06 with one feeder group, expanded to three feeder groups in FY ‘07

and to all District feeders in FY ‘08.

FY ‘07

Allocation

Per Pupil

FY ‘08

Allocation

Per Pupil

FY ‘09

Allocation

Per Pupil

Elementary School - Conventional

$ 3,239

$ 3,400

$ 3,532

Middle Schools

$ 3,541

$ 3,668

$ 3,728

High Schools

$ 3,437

$ 3,561

$ 3,598

Elementary School - 4 Track

$ 3,239

$ 3,400

$ 3,552

District Investment Policy

Safety of principal is the foremost objective of the District’s investment program. The District is

governed by the Colorado Public Deposit Protection Act (PDPA) and by the District’s Board

Policy (Policy DFA). The District follows the “prudent investor” rule applicable to a fiduciary,

which states that a prudent investor “shall exercise the judgment and care, under

circumstances then prevailing, which men of prudence, discretion, and intelligence exercise in

the management of the property of another, not in regard to speculation but in regard to the

permanent disposition of funds, considering the probable income as well as the probable

safety of their capital.”

The investment portfolio is structured so that securities mature sufficiently close to cash

requirements for ongoing operations, minimizing the need to sell securities on the open

market. A minimum of 50% of the portfolio is invested in Federal Instrumentality Securities,

U.S. Treasury Obligations, Repurchase Agreements, Local Government Investment Pools,

Money Market Mutual Funds, Time Certificates of Deposit, Flexible Repurchase Agreements

and Guaranteed Investment Contracts. Investments are limited to maturities not exceeding

five years. At least two broker/dealers bid on each transaction to insure competitive pricing.

All securities are held in a third party safekeeping account at Wells Fargo Trust. On a quarterly

basis the Board receives a list of the District’s investments and their performance.

Eligible investments in our policy are:

6. Flexible Repurchase Agreements

7. Local Government Investment Pools

8. Time Certificates of Deposit

9. Money Market Mutual Funds

10. Municipal Notes or Bonds

11. Guaranteed Investment Contracts

OTHER FUNDS

Besides the General Fund, there are other funds used by the District. The General Fund is

the primary operating fund utilized for most school and department revenues and expenditures

within the District. All other funds are maintained for a specific purpose.

Debt Services/Bond Redemption Fund:

This fund serves as the vehicle for recording dedicated property taxes and the payment of

outstanding principal and interest on the District’s General Obligation Bonds. Available

revenues for this fund are projected to be $60.9 million plus a $38.2 million beginning fund

balance. Expenditures for this fund are budgeted at $60.8 million: main expenses being $28.2

million for mandatory principal payments and $31.0 million in regular interest payments.

Building Fund:

This fund is used to account for the management and actual construction of District facilities

that are financed by borrowed proceeds. The beginning fund balance for FY ’09 is estimated

at $149.4 million and together with estimated revenues for this fund of $3.5 million will cover

expenditures for FY ’09 of $93.9 million.

Capital Reserve Fund:

The Capital Reserve Fund finances major building projects, ongoing maintenance and

equipment acquisition for facilities, and technological needs within the District. Per the School

Finance Act, the primary revenue for this fund is a portion of the $298 per-pupil mandated for

the Capital Reserve and Insurance Reserve Funds. Other significant revenues include

revenue associated with CRS 39-5-132, which enacted in January 1986, allows the District to

mitigate growth by dedicating for capital improvements the assessed value of newly

constructed buildings. Other material revenues are interest earnings and revenue paid in lieu

of taxes. Revenues for FY ’09 are $12.3 million. The fund’s beginning fund balance equals

$1.9 million. Expenditures for this fund are budgeted at $13.5 million.

Governmental Designated Purpose Grants Fund:

This fund accounts for most state and local grants as well as federal funding received by the

District. Essentially this fund is a balanced fund whereby expenditures equal the available

dedicated revenues of $11.1 million.

School Discretionary Fund:

This fund accounts for Coca Cola revenues and an individual school’s discretionary funds.

The beginning fund balance is $2.7 million. Aside from Coca Cola commissions, schools

generate these monies by leasing their facilities. Budgeted revenue for FY ’09 is $2.9 million

and budgeted expenditures total $2.6 million. These funds are spent at each school’s

discretion.

Nutrition Services Fund:

The Nutrition Services Fund operates as an enterprise and accounts for activities related to

preparation of school meals. FY’09 has a beginning balance of $5.7 million and estimates

$13.0 million in sales and other revenue. Budgeted spending totals $13.0 million with 46%

going for food and commodity purchases.

Child Care Fund:

Organized as an enterprise operation, the programs operating under this fund include Before

and After School Child Care, Intersession, and Extended Kindergarten. These programs are

budgeted to be self supporting with revenues derived from program enrollment fees charged

on a per-child basis. Resources include anticipated revenue of $9.8 million plus a beginning

fund balance of $2.3 million. The planned expenditures are $10.2 million.

Private Purpose Trusts Fund:

Accounting for monies whereby the District acts as a fiduciary agent, this fund is comprised of

several accounts funded by private gifts, donations, and/or fund raising efforts. The beginning

fund balance is $82,081 and an additional $100,000 in contributions is anticipated. Expenses

are budgeted to total $82,500.

Pupil Activity Fund:

This includes a group of individual school funds earmarked for extra-curricular student

activities at the elementary, middle and high schools. Revenues are generated by fund raising

events and user/club fees. The beginning fund balance is $1.6 million and budgeted revenues

total $3.4 million with expenses of $3.0 million budgeted.

Medical Self-Insurance Fund:

This fund contains District and employee medical and dental premium payments. The District

operates a self-funded employee benefit program and must match set premiums to cover

projected medical payouts. Due to increases in health care costs nationwide, the fund has

provided for insurance premium increases as follows: medical 12.1% (no increase for dental

and vision). Anticipated revenues for FY ’09 are $40.5 million and expenses are budgeted to

be $40.5 million.

Insurance Reserve Fund:

This fund provides resources for the District’s property insurance, liability insurance, related

loss prevention services, vehicle insurance, workers’ compensation, and security costs.

Together with the Capital Reserve Fund, per the School Finance Act, the primary revenue for

this fund is a portion of the $298 per-pupil allocated by the District. For FY’09 this fund’s share

will provide $2.7 million and together with a beginning fund balance of $2.0 million is sufficient

to cover anticipated expenditures of $3.9 million.

Athletics and Activities Fund:

The purpose of this fund is to capture all revenues and expenses directly related to CHSAA

sponsored athletics and activities. Budgeted revenues total $11.1 million toward expenses of

$11.3 million.

Mil Levy Override Fund:

This fund is a special revenue fund that serves the function of recording the voter approved mil

levy override revenues and expenditures. In November 2006, a mil levy override of $5.0

million was approved for literacy, world language and funded student allocations.

ACHIEVING DISTRICT GOALS THROUGH STAFFING and COMPENSATION

In July of 1994, Douglas County School District and Douglas County Federation of Teachers

implemented a performance-based compensation system for all certified staff. While the

District and the Douglas County Federation of Teachers are making every effort to include the

most recent updates, committee work continues on many aspects of the plan. The

performance pay plan continues to be adjusted and improved based on the feedback received

from teachers, administrators, parents, and members of the community. In FY 1998-1999 the

Board of Education Recognized the Douglas County ATU and in FY 2005-2006, the Board of

Education recognized the Douglas County Federation of Classified Employees.

Plan Overview

Not only is Douglas County’s Performance Pay system the most comprehensive and longest

running in the nation, it continues to attract the attention of a wide range of local, national and

even international audiences. The plan has been heralded as “trail blazing” and

“unprecedented” by various Colorado newspapers. It has also been described as “precedent-

setting reform,” in a

Denver Business Journal

article.

Before the plan could become a reality, it was essential to put together a group that would

ensure the efforts would be tailor made to the needs of Douglas County School District. Twelve

years ago, a task force of 30 individuals—20 teachers and 10 Board of Education appointees,

including several community members and business people — put in more than 6,000 hours

designing this compensation system.

First adopted in the summer of 1994 by the Board of Education and the Douglas County

Federation of Teachers (DCFT), the plan has continued to evolve. Each year since its

inception, committees have continued to refine, evaluate, modify and expand each of the

plan's components. Teachers have demonstrated their support for the plan by voting

overwhelmingly to continue its implementation each year. The major philosophical shift of

performance pay is clear:

no longer will all teachers be awarded salary increases without

regard to performance

. The integration of successful private sector approaches has helped this

plan gain wide credibility among various school district constituencies.

Why is the District doing this?

The number one reason for pursuing a performance-based compensation system is to improve

overall District performance. This plan has come about as an effort to reward outstanding

individual and group performance as it relates to measurable goals.

Reinventing an old way of compensating teachers has not been easy, but that’s precisely what

has happened. An extensive review of private sector approaches to paying employees has

enabled the transfer of many relevant concepts to the District’s new compensation plan. This

plan does not undermine the important element of collegiality and teamwork that people see in

Douglas County today.

Incentives for Quality

Douglas County School District’s performance pay plan focuses on rewarding teachers on their

individual and group performance. Unlike the old system of step increases, this approach is not

limited to length of service for increase in compensation. Any professionally licensed teacher

has the ability to garner additional compensation by demonstrating their increased

effectiveness in the classroom through a number of options and components.

Performance pay is a comprehensive system which aligns teacher appraisal and

compensation with the school district’s goals under Policy Governance. Evidence of impact

from this system includes: an observed increase in teacher skills level and change in teacher

differentiated strategies. Also, measurable increases in student performance are demonstrated

in Group Incentive Projects, Master Teacher, and Outstanding Teacher Programs.

Overall plan objectives are to:

♦

Support the Board Goals and Executive Limitations.

♦

Attract, retain and motivate the highest qualified teachers while competing in the

employment market.

♦

Reward growth, development, skill and knowledge acquisition.

♦

Provide teachers with a stable and predictable base income.

The following items describe components of the District’s Pay for Performance Plan:

Skill Blocks

The goal of Skill Blocks is to provide incentives for teachers who acquire, apply and

demonstrate skills which support the goals of the school district. Skill blocks are practical and/

or innovative skills that teachers acquire and demonstrate in their classrooms. They are not

intended to replace professional development activities, but, instead, to augment those

programs. The District provides training to support the acquisition of skills. Any manner of

acquiring the skills identified in the skill block is acceptable. Teachers may acquire the skill

through professional reading, District in-service, college course work, observation and

coaching with a colleague, or any other avenue of their choosing.

Group Incentive

The Group Incentive Plan rewards groups of teachers for improved student performance; for

enhanced cooperation and collegiality; and to promote positive school and community

relations. A group is defined as teachers within a school or as cross-school teams of teachers

with similar teaching responsibilities. There is only one Group Incentive Plan for each school.

The Group Incentive Plan may include multiple components to integrate the contributions of

classroom teachers, specials teachers, support services, etc. Goals are designed to improve

student performance "above the local standard" of the target group. Student benefits are

clearly stated in the goal(s) and objectives of the Plan, and measured by the assessments

selected. The goal(s), objectives, and assessment(s) are chosen so the amount of student

growth can be demonstrated and documented. The benefits to students from the plan are a

direct result of the activities chosen.

Goals are teacher designed, student focused, linked to school and/or district objectives and

often reflect the individual school’s improvement plan. It is required the proposed Group

Incentive Plan have community and administrative support. Normally, this will be shown by

letters of support from the Building Accountability Committee or Site Council, and the principal.

The Group Incentive Board recommends informing the community as broadly as possible

about the proposed plan; however, an opportunity for public input is not required, just

suggested.

Outstanding Teacher

The intent of the Outstanding Teacher designation is to honor teaching excellence in Douglas

County Schools. The Outstanding Teacher Program is an annual bonus that rewards

outstanding teachers who demonstrate and document teaching excellence during the

academic year. This can be accomplished through a diverse and open system that allows

individuality and creativity while maintaining consistent, district-wide guidelines. Several

options have been developed to allow teachers choices in this process. All eligible licensed

professionals, including classroom teachers, media specialists, counselors, speech therapists,

social workers and psychologists interested in being designated Outstanding in Douglas

County are encouraged to participate in this process.

Master Teacher

In 2001 the Master Teacher component was added to the performance pay plan. Originally

intended to be linked to master teacher licensure through the Department of Education, the

Douglas County Master Teacher designation is based on District-developed criteria, including

student growth, leadership, recognition, awards, innovation and community partnership. The

Master Teacher designation recognizes teachers who get superior student performance results

and make significant and distinct contributions to our community beyond the classroom.

National Board Certified Teachers

Douglas County has now included Na-

tional Board Certified Teachers within

the District’s performance pay plan.

Teachers receive National Board Certifi-

cation through a rigorous process estab-

lished and monitored by the National

Board for Professional Teaching Stan-

dards. The National Board Certificate is

available for a variety of disciplines and

grade levels and is awarded to success-

ful candidates for a period of ten years.

Douglas County Board certified teachers

may receive bonus incentives for five of

the ten years of their certificate and are

encouraged to participate in the Master

Teacher Program for the second five

years of the life of their certificate.

August 2007

September 2007

October 2007

November 2007

December 2007

July 2007

JULY 2007

♦

Budget Department Work Session to discuss budget processes

for FY 2008-2009.

♦

FY 2007-2008 Financial Plan and Budget published on District

website.

♦

July 17 -

Executive Limitation 1.5: Financial Planning and

Budgeting.

AUGUST 2007

♦

Budget Department Survey made available to stakeholders.

♦

August 22

- Receive County Assessment Certification.

SEPTEMBER 2007

♦

Budget Department to begin preliminary work on FY 2008-2009

Budget.

OCTOBER 2007

♦

Budget Department to make final changes to FY 2007-2008

Budget for presentation to Board of Education.

♦

October 1

- Official Pupil Membership Count commences.

DECEMBER 2007

♦

December 3

- Open Enrollment commences.

♦

December 18

Executive Limitation 1.6: Fiscal Management and

Controls.

♦

December 28

- Official Pupil Membership Count complete.

♦

December 28

- Planning Department’s enrollment projections (by

school and grade level).

♦

Cabinet budget meetings on Friday’s.

DOUGLAS COUNTY SCHOOL DISTRICT

BUDGET PROCESS CALENDAR FOR FY 08-09 BUDGET

NOVEMBER 2007

♦

November 9

- Pupil count complete.

January 2008

February 2008

March 2008

April 2008

May 2008

June 2008

JANUARY 2008

♦

January 15

- Open enrollment closes.

FEBRUARY 2008

♦

SBB Budget Training for Schools

♦

Human Resources to hold staffing meetings with schools.

♦

February 21

- Inflation Rate for School Total Program Funding.

♦

Worksheets made available to departments.

♦

Departments work with budget rep. during the month.

♦

Department budgets due electronically to Budget Department

by end of month.

MARCH 2008

♦

Childcare Budget Training and Open labs scheduled for

schools.

♦

Final pupil count numbers available.

♦

Cabinet update on FY 2008-2009 Budget.

♦

Present update on FY 2008-2009 to Board of Education.

♦

All department and school budgets finalized and submitted in

Oracle system.

APRIL 2008

♦

Cabinet to review Preliminary FY 2008-2009 Budget.

♦

Present Preliminary FY 2008-2009 Budget to Board of

Education.

MAY 2008

♦

Cabinet to review Proposed FY 2008-2009 Budget.

♦

Present Proposed FY 2008-2009 Budget to Board of

Education.

JUNE 2008

♦

June 17

- FY 2008-2009 Financial Plan and Budget Adopted

by the Board of Education.

♦

Publish Adopted FY 2008-2009 Financial Plan and Budget.

DOUGLAS COUNTY SCHOOL DISTRICT

BUDGET PROCESS CALENDAR FOR FY 08-09 BUDGET

GENERAL FUND FIVE YEAR FINANCIAL PROJECTION

REVENUES

Adopted

Budget

2008-09

BEGINNING FUND BALANCE 24,453,296

REVENUES

Local Taxes:

100% Property Tax - Formula 124,380,719

Net Property Tax Receipts (1,000,000)

1989 Budget Override 2,013,000

1997 Budget Override 9,700,000

2003 Budget Override 17,000,000

Nov 2006 Budget Override 5,000,000

Specific Ownership Taxes - In Formula 10,237,096

Specific Ownership Taxes - Out 10,350,670

Subtotal - Local Tax Revenues 177,681,485

Intergovernmental

Equalization Entitlements 213,815,452

Hope Online Funding 27,008,750

Transportation 3,916,619

Special Education 3,340,559

New REF C Dollars 2,972,064

Vocational Education 206,400

Gifted & Talented 440,273

Other 279,811

Subtotal - Intergovernmental Revenues 251,979,928

Other Local Revenue

General Fund Interest 1,300,000

Charter School Reimbursement Revenue 2,478,375

Transfers In 1,600,000

Other Taxes -

Transportation Fees 477,817

Instructional Material Fees 491,723

Preschool Tuition 2,123,739

Summer School Tuition 1,589,834

Student Fees 2,085,193

Rentals 644,013

Revenue From Sales 1,484,146

Donations 1,850,863

Misc 3,455,765

Reserve from Other Funds -

Subtotal - Other Local Revenue 19,581,468

TOTAL REVENUES $ 449,242,880

Total Program Funding $ 375,442,017

Projected Projected Projected Projected

2009-10 2010-11 2011-12 2012-13

22,305,557

24,021,509

25,558,640

26,876,330

131,833,167

139,743,157

143,935,452

152,571,579

2,013,000 2,013,000 2,013,000 2,013,000

9,700,000

17,000,000

5,000,000

11,354,393

11,929,946

12,351,515

12,369,546

10,125,607

10,328,054

9,948,485

10,030,454

187,026,167

195,714,157

199,948,452

208,684,579

231,712,887

252,673,320

273,800,457

292,543,355

29,932,542

4,057,617

4,215,864

4,329,692

4,446,594

3,460,819

3,595,791

3,692,877

3,792,585

3,079,058

3,199,141

3,285,518

3,374,227

213,830

222,169

228,168

234,329

456,123

473,912

486,708

499,849

289,884

301,189

309,321

317,673

273,202,760

294,613,928

316,065,283

335,141,154

1,339,000

1,379,170

1,420,545

1,463,161

2,552,726

2,629,308

2,708,187

2,789,433

1,600,000

506,486

536,875

569,088

603,233

506,475

521,669

537,319

553,439

2,166,214

2,209,538

2,253,729

2,298,804

1,669,326

1,752,792

1,840,432

1,932,454

2,126,897

2,169,435

2,212,824

2,257,080

656,893

670,031

683,432

697,101

1,558,353

1,636,271

1,718,085

1,803,989

1,924,898

2,001,894

2,081,970

2,165,249

3,593,995

3,737,755

3,887,265

4,042,756

20,201,263

20,844,738

21,512,876

22,206,699

$ 480,430,190 $ 511,172,823 $ 537,526,611 $ 566,032,432

$ 404,832,989 $ 434,278,965 $ 460,019,966 $ 487,417,022

GENERAL FUND FIVE YEAR FINANCIAL PROJECTION

EXPENDITURES

Adopted

Budget

2008-09

EXPENDITURES

100 - Administrator 18,651,784

200 - Teachers, Subs & Interns 174,680,646

Certified Longevity/Knowledge Pay 2,400,000

300- Technical 4,865,538

400- Paraprofessional - Aides 19,229,235

500 - Office Support 15,160,111

600- Crfts, Trd, Ntrtn Srvcs & Cstdns 21,210,095

Non-Job Class Specific Salaries

Substitutes 4,293,225

Pay for performance 2,885,257

Separation/Severance 240,000

Other Salaries 4,482,015

Salaries 268,097,906

0211 - Life Insurance 276,427

0213 - Long Term Disability 482,682

0221 - Medicare 3,867,797

0230 & 31 - PERA, Employers' Share 33,343,939

0240 - College Credit Reimbursement 100,000

0251 - Medical Insurance 24,068,601

0252 - Dental Insurance 2,132,224

0253 - Vision Insurance 313,864

0290 - Administrator Benefits -

0293 - Quality Separation 850,000

Benefits 65,435,534

Operating 41,435,337

Charter School Transfer (based upon Charter's FPC x PPR) 20,849,349

Charter Schools' Share of '03 Override (@ $251/FPC) 543,917

Allocation to Hope Online 27,008,750

Capital Reserve Fund Transfer 11,564,919

Insurance Reserve Transfer 2,722,875

Student Athletic Fund Transfer 4,795,688

Fund 29 Transfer: Mill Levy Override Fund 5,000,000

Contingency ~ Reserve for Schools 900,000

Contingency ~ All-Day Kindergarten Program 2,186,344

Contingency ~ General Operating 850,000

Reductions -

TOTAL EXPENDITURES $ 451,390,619

CHANGE IN FUND BALANCE

($ 2,147,739)

BEGINNING FUND BALANCE $ 24,453,296

ENDING FUND BALANCE $ 22,305,557

5.0%

Ending Fund Balance - as % of Total Revenues

Projected Projected Projected Projected

2009-10 2010-11 2011-12 2012-13

19,528,418

20,793,025

22,194,270

23,365,136

187,566,171

201,930,607

216,627,629

232,037,157

2,800,000

5,094,218

5,501,748

5,926,069

6,378,231

20,411,444

21,606,639

22,898,677

24,095,262

15,872,636

16,879,407

18,055,600

19,092,568

22,555,086

24,119,898

25,888,980

27,411,627

4,500,582

4,730,739

4,955,180

5,192,623

2,985,274

3,096,847

3,180,462

3,266,334

246,240

253,381

260,222

267,248

4,598,547

4,731,905

4,859,666

4,990,877

286,158,616

306,444,196

327,646,755

348,897,063

284,001

295,634

305,052

312,534

498,559

514,235

534,692

556,346

4,129,677

4,423,818

4,731,255

5,039,385

38,176,955

43,653,221

49,634,008

56,004,129

100,000

27,701,928

31,934,622

36,839,240

42,276,059

2,256,781

2,392,489

2,538,089

2,678,066

321,438

329,691

338,389

345,691

8,000

18,000

22,000

875,500

74,344,839

84,527,210

95,914,225

108,209,710

44,603,959

46,395,439

48,364,452

50,125,760

22,093,660

23,517,630

24,881,842

26,282,888

543,917

560,741

577,563

594,890

27,008,750

13,587,218 14,721,620 15,754,150 16,856,075

2,820,899 2,930,914 3,010,049 3,091,320

5,107,176

5,599,624

5,937,192

6,159,957

5,000,000

1,200,000

4,186,344

850,000

(8,791,140)

(13,306,776)

(24,122,401)

(33,855,617)

$ 478,714,238 $ 509,635,692 $ 536,208,921 $ 564,607,140

$ 1,715,952 $ 1,537,131 $ 1,317,690 $ 1,425,292

$ 22,305,557 $ 24,021,509 $ 25,558,640 $ 26,876,330

$ 24,021,509 $ 25,558,640 $ 26,876,330 $ 28,301,622

5.00% 5.00% 5.00% 5.00%

* These reductions are in year only

ENDING FUND BALANCE AS A PERCENT OF TOTAL REVENUES

The Board has set the District’s goal of maintaining at least a five percent (5.0%) ending Fund

Balance as a percent of General Fund Total Revenues. The District has not dropped below

this minimum amount during the last three years nor does it expect to draw Total Revenues

below this threshold in the course of FY ‘09. Pursuant to District policy and practice, the Fiscal

Year 2008-2009 Budget provides for an Ending Fund Balance in excess of five percent

(5.0%).

GENERAL FUND - FUND BALANCE HISTORY AND BUDGET

FY 2004-2005 ACTUAL TO FY 2008-2009 BUDGET

Estimated

Actual Actual Actual Actual Budget

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Beginning Fund Balance $ 26,026,441 $ 29,746,584 $ 34,885,682 $ 33,900,988 $ 24,453,296

Total Revenue 303,053,948 326,303,746 358,133,869 387,959,742 449,242,880

Total Expense 299,333,805 321,164,648 359,118,563 397,407,433 451,390,619

Ending Fund Balance $ 29,746,584 $ 34,885,682 $ 33,900,988 $ 24,453,296 $ 22,305,557

Ending Fund Bal as % of Total Rev 9.8% 10.7% 9.5% 6.3% 5.0%

DOUGLAS COUNTY SCHOOL DISTRICT RE.1

BUDGETED GENERAL FUND STAFFING SUMMARY

June

Budgeted Budgeted Budgeted Budgeted Budgeted % of

FTE FTE FTE FTE FTE Total

Employee Group

2004-05

2005-06

2006-07

2007-08

2008-09

100-ADMINISTRATIVE STAFF

Total Administrative Staff

167.36 176.36 186.80 205.47 203.29 3.94%

200-CERTIFIED STAFF

Total Certified Staff

2,602.42 2,705.07 2,934.44 3,144.43 3,188.82 61.82%

300-PROFESSIONAL/TECHNICAL STAFF

Total Professional/Technical Staff

82.72 87.72 70.23 68.93 66.67 1.29%

400-600 CLASSIFIED STAFF

Total 400 - Clerical Staff

528.96 532.96 556.61 646.98 680.95 13.20%

Total 500 - School Office/Instr Support 302.50 304.10 370.54 413.25 409.59 7.94%

Total 600 - Support Services 495.42 540.92 566.94 555.25 609.28 11.81%

GRAND TOTAL

4,179.38 4,347.13 4,685.56 5,034.31 5,158.60 100.00%

GENERAL FUND REVENUES

FY 2004-2005 ACTUAL TO FY 2008-2009 BUDGET

Actuals Actual

2004-2005 2005-2006

BEGINNING FUND BALANCE 26,026,441

29,746,584

REVENUES

Local Taxes:

100% Property Tax - Formula 91,627,991

97,978,600

Net Property Tax Receipts 155,406

(857,345)

1989 Budget Override 2,013,000 2,013,000

1997 Budget Override 9,700,000

9,700,000

2003 Budget Override 17,000,000

17,000,000

Nov 2006 Budget Override -

Specific Ownership Taxes - In Formula 9,677,624

10,049,420

Specific Ownership Taxes - Out 7,779,714

7,854,021

Subtotal - Local Tax Revenues 137,953,735

143,737,696

Intergovernmental

Equalization Entitlements 144,582,516

158,044,093

Hope Online Funding -

Transportation 2,698,174

2,708,670

Special Education 2,844,595

2,934,761

New REF C Dollars -

2,281,568

Vocational Education 947,199

1,776,815

Gifted & Talented -

Other 608,370

667,941

Subtotal - Intergovernmental Revenues 151,680,854

168,413,848

Other Local Revenue

General Fund Interest 380,874

800,235

Charter School Reimbursement Revenue 1,694,793

1,935,492

Transfers In 294,520

403,000

Other Taxes -

29,423

Transportation Fees 343,239

377,138

Instructional Material Fees 383,093

406,686

Preschool Tuition 1,197,368

1,246,307

Summer School Tuition 942,760

1,206,041

Student Fees 2,968,266

1,566,321

Rentals 507,514

610,469

Revenue From Sales 951,889

931,702

Donations 1,778,183

1,999,474

Misc 1,976,860

1,639,914

Reserve from Other Funds -

1,000,000

Subtotal - Other Local Revenue 13,419,359

14,152,202

TOTAL REVENUES $ 303,053,948 $ 326,303,746

Total Program Funding $ 245,888,131 $ 266,072,113

Estimated Proposed Adopted

Actuals Actuals Budget Budget

2006-07 2007-08 2008-09 Change 2008-09

34,885,682

33,900,988

24,453,296

103,069,695

115,680,956

124,380,719

(1,160,424)

(697,973)

(1,000,000)

2,013,000 2,013,000 2,013,000

2,013,000

9,700,000

17,000,000

5,000,000

9,861,138

10,237,096

11,161,122

(924,026)

10,237,096

8,693,724

9,765,685

9,426,878

923,792

10,350,670

154,177,133

168,698,764

177,681,719

(234)

177,681,485

177,436,733

191,893,576

210,613,567

3,201,885

213,815,452

27,008,750

3,233,294

3,953,753

3,916,619

3,035,586

3,236,976

3,340,559

2,656,190

2,879,907

2,972,064

274,258

(509,925)

206,400

484,347

513,651

431,516

8,757

440,273

243,727

185,923

279,811

187,364,135

202,153,861

221,760,536

30,219,392

251,979,928

1,288,196

1,000,000

1,300,000

2,346,020

2,332,937

2,478,375

1,828,808

1,400,000

1,600,000

429,017

477,001

477,817

428,088

449,512

491,723

1,462,038

2,205,699

2,123,739

1,326,402

1,152,850

1,589,834

1,741,038

1,841,821

2,085,193

608,285

582,671

644,013

1,301,423

1,499,932

1,484,146

1,168,427

1,301,595

1,850,863

2,664,859

2,863,099

3,455,765

16,592,601

17,107,117

19,581,468

$ 358,133,869 $ 387,959,742 $ 419,023,723 $ 30,219,158 $ 449,242,880

$ 290,367,566 $ 317,811,628 $ 346,155,408 $ 2,277,859 $ 375,442,017

GENERAL FUND EXPENSES

FY 2004-2005 ACTUAL TO FY 2008-2009 BUDGET

Actuals Actual

2004-2005 2005-2006

EXPENDITURES

100 - Administrator 14,403,608

15,408,401

200 - Teachers, Subs & Interns 127,114,774

135,420,363

Certified Longevity/Knowledge Pay -

300- Technical 4,817,806

3,979,248

400- Paraprofessional - Aides 13,085,005

14,039,849

500 - Office Support 8,944,896

11,461,648

600- Crfts, Trd, Ntrtn Srvcs & Cstdns 15,130,529

16,063,218

Non-Job Class Specific Salaries

Substitutes 3,561,301

3,836,623

Pay for performance 2,999,541

3,086,861

Separation/Severance 1,396,019

369,365

Other Salaries 7,494,525

5,072,112

Salaries 198,948,004

208,737,688

0211 - Life Insurance 282,903

193,621

0213 - Long Term Disability 507,274

356,364

0221 - Medicare 2,599,364

2,780,191

0230 & 31 - PERA, Employers' Share 19,412,563

21,143,423

0240 - College Credit Reimbursement 90,409

98,128

0251 - Medical Insurance 16,253,303

17,553,879

0252 - Dental Insurance 1,461,340

1,588,806

0253 - Vision Insurance 260,259

276,038

0290 - Administrator Benefits 357,486

373,705

0293 - Quality Separation 405,174

1,184,018

Benefits 41,630,075

45,548,172

Operating 35,229,848

36,315,148

Charter School Transfer (based upon Charter's FPC x PPR) 12,337,219