district budget information - Great Falls Public Schools

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Aug 15, 2017 - Jason Brantley ..... stewardship, and safe, healthy, and secure schools. ...... Retirement System, unempl
Great Falls Public Schools

DISTRICT BUDGET INFORMATION 2017-2018 School Year

Our Mission We successfully educate students to navigate their future.

TABLE OF CONTENTS Page

Page

Introductions

General Fund Budget Information

1

Board of Trustees

41-42

Trend Data

2

Administrative Staff

43

Expenditures

3

Message from the Director of Business Operations

44

Revenue

4-7

Message from the Superintendent

45-46

Cash Flow Analysis

Budgeted Funds Information 8

Budgeted Funds Report Summary

9 10-12 13 14-16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Legislative Information Summary

Budgeted Funds Mill/Value Previous Year Comparison

47-49 50

Funding Component Breakdown & Summary

51-52

Inflationary Increases

General Fund

53

Senate Bill 307

General Fund Budget Report

54-55

Billings Gazette Article

Senate Bill 267

Transportation Fund Trend Data Transportation Fund Budget Report

Audit, Non-Budgeted Funds, & Levy History

Tuition Fund Trend Data Tuition Fund Budget Report

56

Audit Management Discussion & Analysis 2015

Retirement Fund Trend Data

57

Investment History

Retirement Fund Budget Report

58-60

Non-Budgeted Funds

Adult Education Fund Trend Data Adult Education Fund Budget Report Technology Fund Trend Data

61 62 63

GASB 54 June 30, 2017 Impact Aid Voted Levy History

Technology Fund Budget Report Flexibility Fund Trend Data

Facilities Bond Information

Flexibility Fund Budget Report Debt Service Fund Trend Data

64

Facilities Master List

Debt Service Fund Budget Report

65-66

Facility Plan Summary

Building Reserve Fund Trend Data

67

Elementary Bond Language & Election Results

Building Reserve Fund Budget Report

68

High School Bond Language & Election Results

Expenditure Budgets - All Budgeted Funds

69

Bond Sale Information

70

Elementary Bond Schedule

71

High School Bond Schedule

Fast Facts

72

State Reimbursement for General Obligation Bonds

34

Student Information

73

Debt Capacity

35

District Information

74

Property Classifications for Tax Purposes

36

Community Information

75

Cascade County Tax Levies

37

AA District Tax Comparisons

76

Tax Collection History

38

Cascade County K-12 School District Levies 2016

77

Elementary Taxable Valuation Trend Information

39-40

Glossary of Terms

78

High School Taxable Valuation Trend Information

79

Per Capita Income & Unemployment Rates Cascade County

80

Notes

BOARD OF TRUSTEES Great Falls Public Schools Great Falls, Montana

THE BOARD OF EDUCATION

Term Expires

Jan Cahill….…...............................................................................Chair

2020

Jeff Gray …............................................................................Vice-Chair

2019

Jason Brantley............................................................................Trustee

2020

Ann Janikula…...........................................................................Trustee

2019

Bob Moretti……..…..…………..……………………………..…….Trustee

2018

Don Ryan……….........................................................................Trustee

2020

Laura Vukasin….........................................................................Trustee

2019

Board Committees Budget Committee………...Don Ryan– Chair, Jeff Gray and Jan Cahill Policy Committee……………………….…Bob Moretti and Ann Janikula Register Committee…………………...Ann Janikula and Laura Vukasin Downtown Development Partnership…………………... Jason Brantley AA Caucus………………………... Jan Cahill, Jeff Gray and Don Ryan District Committees Health Insurance Committee………………………………. Ann Janikula

Graduation Matters………………………………………...Jason Brantley Labor Management…………………………………………….Bob Moretti Transportation……………………………………………….Laura Vukasin GF Foundation…………………………………………………….Jeff Gray Calendar Committee…………………………………………….Don Ryan PIR Steering Committee…………………………….………..Bob Moretti 1

2017-2018 ADMINISTRATIVE STAFF Great Falls Public Schools Great Falls, Montana

Tammy Lacey.......................................................................Superintendent of Schools Brian Patrick................................................................Director of Business Operations Tom Moore..........................................Assistant Superintendent Secondary Education Ruth Uecker.......................................Assistant Superintendent Elementary Education Mindy Kiser.....................................................................Director of Human Resources Dale Lambert....................................................................Director of Student Services Tom Hering…………………………………………....Director of Information Technology

2

MESSAGE FROM THE DIRECTOR OF BUSINESS OPERATIONS

3

MESSAGE FROM THE SUPERINTENDENT SUPERINTENDENT’S BUDGET MESSAGE Great Falls Public Schools August, 2017 Tammy Lacey, Superintendent

INTRODUCTION The information on the following pages is intended to provide the reader with a snapshot of all of the information that was considered in preparing the upcoming year’s budget. It is our pleasure to provide information to the reader about the thoughtful and deliberate process which has resulted in the 2017-2018 budget proposal. The budget is a serious document that serves several purposes. The budget is:  A description of the educational plan and the resources required to support the plan;  An outline of proposed District actions;  An accountability tool as it is reported and audited; and  A public information document. In the simplest sense, the budget serves as an outline of the District’s revenue and expenses. But it also serves as both a policy document and a practical day-to-day guidance tool. It is an expression, in dollars, of the District’s comprehensive educational program. Due to its significance, I am thankful for the dedicated and detail-oriented professionals that diligently prepared this proposal. This document reflects the leadership of Brian Patrick, Director of Business Operations, and the other Business Department team members as they worked with Cabinet members, principals, myself and others to align educational expenses with revenues. I thank them all for their attention to detail, creativity, and diligence in this work. Additionally, the Board Budget Committee, comprised of Trustees Dan Ryan, Bob Moretti and Jan Cahill, provided guidance and support throughout the process. It is through their participation that the community’s interests are represented. This is representative democracy in action. 2017-2018 BUDGET THOUGHTS Funding Assumptions. In preparing for the 2017-2018 budget, the District assumed the following:  Rolling the 2016-2017 general educational program budget into 2017-2018 school year requires an additional $1,179,800 in spending due to contractual obligations and projected increases in health insurance premiums.  A 2% increase in base salaries for all employee groups estimated at $1,081,000.  Inflationary increases of approximately .5% to the state funding formula along with ANB calculations, for additional state funding of just $233,294.  An increase of $150,000 in the special education tuition levy.  A shortfall of $1,870,000 after comparing the expected budget increases required to roll over the budget and provide base salary increases, to the additional revenue from the state.  Necessary expenditure reductions and operational changes in the amount of at least $1,800,000.

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Budget Setting Process and Levy Decision. As per the District’s Strategic Plan which sets forth an annual budget setting process that includes public involvement, the District held five community meetings related to the budget:  January 17, 2017: How Much Money GFPS Gets, Where It Comes From, & How It’s Spent  January 30, 2017: How Salaries and Benefits Impact the Budget  February 6, 2017: How Technology is Paid For and Current Needs  February 21, 2017: Student Enrollment and Revenue Projections  March 7, 2017: Legislative Update & Superintendent Recommendations  March 21, 2017: Budget Committee Deliberates and Prepares Recommendation Each meeting allowed for small group discussions about the specific topics. Many of the suggestions were incorporated in the expenditure reductions. After listening to public comment and to the options I set forth on March 7, the Board Budget Committee voted 3-0 for Option 3: a $1,219,900 elementary operational levy and a $1,000,000 high school technology levy. The full Board took action on March 27, 2017. They voted against the elementary operational levy (42) and for a $500,000 high school technology levy (6-0). District leadership was asked to balance the budget via expenditure reductions and operational change efforts. Technology Levy. A high school technology levy was conducted with the annual trustee election on May 2, 2017. It was an all-mail ballot so the public received their ballots on or around April 18, 2017. As it was conducted with the trustee election, there were no additional costs associated with including it on the ballot. The $500,000 was slated to be spent on “Technology Tools for Tomorrow”:  $325,000 to refresh and replace aging computers, laptops, printers, projectors and other equipment  $166,500 to purchase new technologies such as chromebooks  $8500 to provide professional development. The additional levy amount was anticipated to cost $4.65/year or 39¢/month on a $100,000 taxable valued home. The levy failed by a vote of 8207 against and 7475 for with 45% of the 36,081 of eligible voters casting a ballot. The perpetual high school technology levy supported by the community in 2002 of $75,000 will continue to be levied. The failure of this levy has an impact on the general fund budget in that it will have to fund the technology needs noted above to the extent possible given other budget priorities. Enrollment. Enrollment has a major impact on the District’s budget as most state funds for education are distributed on a per pupil formula. The more students enrolled the more state funding the District receives and vice versa. Here is the enrollment history over the last ten years:

10 Year History…1st Official Count *Total K-6 7-8 9-12 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

10,474 10,410 10,336 10,153 10,127 10,109 10,220 10,331 10,193 10,269

5,430 5,458 5,502 5,495 5,519 5,623 5,667 5,814 5,705 5,768

1,537 1,565 1,556 1,499 1,520 1,486 1,487 1,483 1,484 1,506

3,507 3,387 3,278 3,159 3,088 3,000 3,066 3,034 3,004 2,995

5

PK

Total with PK

103 102 98 105 133

10,212 10,322 10,429 10,298 10,402

*Does not include PreK

The elementary enrollment resulted in:  70/257 (27%) K-6 classrooms above class size accreditation standards.  61/121 (50%) K-2 classrooms above class size accreditation standards. As per the GFPS Strategic Plan, district leadership conducted a demographic study to look at enrollment trends. Cropper GIS/McGibbon Demographics was hired to complete the study. The results are on file in the District. They will be taken into account for future budget planning. Staffing. Districts across Montana are finding it more and more difficult to recruit and retain teachers and other necessary staff members. GFPS shares these same concerns. Non-competitive salaries are a factor in hiring and retaining high quality employees. In an effort to increase salaries, the District is committed to providing raises to staff. To that end, the District has collectively bargained a 2% base salary increase with several groups for the 2017-2018 school year. Those employees not associated with a union will also see a 2% base salary increase. The anticipated increases are estimated at $1,081,000. Those increases have been factored into the proposed budget. Benefits are a key factor in the recruitment and retention of staff. GFPS has an Insurance Committee that studies the trends and works to provide a good health insurance plan at a price that employees and the District can tolerate. Once again, there is an increase in health insurance premiums that will be shared by the employees and GFPS. The district’s health insurance increase is being accounted for in the proposed budget. Expenditure Reduction and Operational Change Efforts. In order to balance the 2017-2018 budget, the Board directed leadership to reduce general fund expenditures in the amount of at least $1,800,000. The department leaders, assistant superintendents and principals were very challenged by this task as every decision had the potential to impact student programming. At the end of an arduous process, the following reductions were made: Personnel reductions (21.75 FTE): Supplies: Textbooks: Professional development: Stipends/hourly: Technology: Community collaborations: Administrator benefits: GRAND TOTAL

$1,096,116 $ 247,400 $ 126,000 $ 122,500 $ 95,500 $ 55,000 $ 56,800 $ 23,520 $1,822,836

Facilities. A special mail-in ballot election asking for $45,910,000 for K-8 facilities and $52,955,000 for high school facilities was held on October 4, 2016. The elementary bond passed with 62% voting for it and the high school passed with 58% voting for it. $38,000,000 of the elementary bonds and $26,000,000 of the high school bonds were sold on February 7, 2017. The favorable interest rates of 3.7% resulted in a savings to the taxpayers of over $7,000,000 in interest as compared to the estimates presented in October. It is important to note that bond proceeds are separate from the general fund budget and cannot be used to supplement the general fund. Bond proceeds, for example, cannot be used to pay staff salaries. Therefore, the 2017-2018 general fund budget proposal is not impacted by the successful election. Students, staff and community members however, will no doubt notice changes to their educational facilities. Those changes are slated to take place over the next 3-5 years. During this budget cycle, we will see a new elementary school built, major additions to C. M. Russell High School, and over $3,500,000 in other work being completed across the District. The public can follow along with the facility progress at this website: http://www.gfps.k12.mt.us/content/facility-action.

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CONCLUSION The 2017-2018 budget was once again a major challenge to develop. In last year’s budget message, I put the future of educational funding in the hands of the 2017 Montana Legislature. While legislation around such things as tax credits, vouchers or charter schools, all major threats to school funding in my mind, was not passed, the funding provisions that were have put the District in a precarious position. The tax shifts from state and local funding (specifically, the Natural Resource Development payment and the non-levied Block Grant revenue) will be felt by taxpayers this fall and potentially blamed on the District. In reality, the dollars in each of these revenue sources are guaranteed as entitlements by the legislature as part of our basic funding formula. In the past, the guaranteed funds came from the state. Now, thanks to the 2017 Montana Legislature, local property taxpayers are paying them. I worry about this additional burden to our local property owners. Secondly, the “triggers” deployed via SB 261, have also left the District in a precarious position. We will have to wait and see what develops in regard to at-risk payments, special education, secondary vo-ed, Data for Achievement, and others. It is very difficult to be strategic in our decision making while having to “wait and see” what happens in Helena. These uncertainties, in conjunction with the on-going and increasing costs of doing business, will no doubt impact the 2017-2018 budget and beyond. When you add the above to the federal uncertainties for educational funding for special education, Medicaid service reimbursements, at-risk student support and other proposed cuts, I am concerned. I fear that we will not be able to sustain the comprehensive PK-12 programming and extensive extra- and cocurricular offerings that our community is proud of and expects. I am committed to the GFPS Strategic Plan that focuses on student achievement, accountability and stewardship, and safe, healthy, and secure schools. While I believe this proposed 2017-2018 budget supports the District’s vision and mission, there will be consequences of the $1,823,000 in reductions. District leadership will work hard to mitigate them, but the challenges are real. Education is a partnership between schools, students, parents, and the community. Students and their families depend on good schools to provide opportunities for learning and growth. Schools depend on community support in order to provide comprehensive opportunities. Communities depend on good schools for economic vitality and future growth. I believe that OUR KIDS, OUR COMMUNITY, and OUR FUTURE are reflected in this proposed budget. I present it to you and recommend its approval.

7

BUDGET REPORT SUMMARY

8

BUDGETED FUNDS MILL VALUE PREVIOUS YEAR COMPARISON Great Falls Public Schools Budgeted Funds Mill Value Comparison August 2017

MILL VALUE Elem

HS

2016-17 Mill Value 2017-18 Mill Value Difference

$ $ $

131,310 $ 137,152 $ 5,842 $

134,059 $ 139,856 $ 5,797 $

Total 265,369 277,008 11,639

All Budgeted Funds Combined Total Mills Elementary High School Total

16-17 121.88 59.43 181.31

17-18 Difference 154.41 32.53 77.59 18.16 232 50.69

Total Elementary High School Total

$ $ $

16-17 51,989,319 $ 24,765,363 $ 76,754,682 $

17-18 Difference 56,822,808 $ 4,833,488 27,098,788 $ 2,333,425 83,921,595 $ 7,166,913

General Fund (X01) Elementary High School Total

16-17 102.24 54.15 156.39

17-18 Difference 107.35 5.11 55.9 1.75 163.25 6.86

General Fund (X01) Elementary High School Total

$ $ $

16-17 46,866,934 $ 23,140,511 $ 70,007,445 $

17-18 Difference 47,293,657 $ 426,723 23,041,485 $ (99,027) 70,335,142 $ 327,696

Transportation (X10) Elementary High School Total

16-17 15.27 2.64 17.91

17-18 Difference 13.58 -1.69 3.63 0.99 17.21 -0.70

Transportation (X10) Elementary High School Total

$ $ $

16-17 2,781,340 $ 831,214 $ 3,612,554 $

17-18 Difference 3,160,273 $ 378,933 1,096,368 $ 265,154 4,256,641 $ 644,087

Tuition (X13) Elementary High School Total

16-17 1.68 0.79 2.47

17-18 Difference 7.66 5.98 0.86 0.07 8.52 6.05

Tuition (X13) Elementary High School Total

$ $ $

16-17 176,782 $ 16,686 $ 193,469 $

17-18 Difference 1,050,993 $ 874,211 119,651 $ 102,965 1,170,644 $ 977,175

Retirement (X14) Elementary High School Total

$ $ $

16-17 6,000,000 $ 3,240,000 $ 9,240,000 $

17-18 Difference 7,100,000 $ 1,100,000 4,280,000 $ 1,040,000 11,380,000 $ 2,140,000

Retirement (X14)

County wide Permissive

Levy Adult Education (X17) Elementary High School Total

16-17 1.56 1.30 2.86

17-18 Difference 1.53 -0.03 1.50 0.20 3.03 0.17

Adult Education (X17) Elementary High School Total

$ $ $

16-17 337,250 $ 302,500 $ 639,750 $

17-18 Difference 337,250 $ 302,500 $ 639,750 $ -

Technology (X28) Elementary High School Total

16-17 1.13 0.55 1.68

17-18 Difference 1.09 -0.04 0.54 -0.01 1.63 -0.05

Technology (X28) Elementary High School Total

$ $ $

16-17 1,263,384 $ 419,108 $ 1,682,492 $

17-18 Difference 1,197,243 $ (66,141) 371,270 $ (47,838) 1,568,513 $ (113,979)

Flexibility (X29) Elementary High School Total

16-17 0.00 0.00 0.00

17-18 0.00 0.00 0.00

Difference 0.00 0.00 0.00

Flexibility (X29) Elementary High School Total

$ $ $

16-17 306,653 $ 13,608 $ 320,261 $

17-18 Difference 364,669 $ 58,015 47,359 $ 33,752 412,028 $ 91,767

Building Reserve (X61) Elementary High School Total

16-17 0.00 0.00 0.00

17-18 4.00 2.29 6.29

Difference 4.00 2.29 6.29

Building Reserve (X61) Elementary High School Total

$ $ $

16-17 256,976 $ 41,736 $ 298,712 $

17-18 Difference 785,665 $ 528,689 320,400 $ 278,664 1,106,065 $ 807,353

Debt Service (50) Elementary High School Total

16-17 0.00 0.00 0.00

17-18 19.20 12.87 32.07

Debt Service (50) Elementary High School Total

16-17

19.20 12.87 32.07

$ $ $

17-18 Difference 2,633,058 $ 2,633,058 1,799,755 $ 1,798,639 4,432,813 $ 4,431,697

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$ 1,116 $ 1,116 $

2017-18 ELEMENTARY GENERAL FUND FUNDING COMPONENT BREAKDOWN

Elementary

Elementary

2016-17

2017-18

100% Maximum-$47,881,423

100% Maximum-$48,515,527

Voted Levy Potential $1,014,489

Voted Levy Potential $1,221,871

Budget $46,866,934

Budget $47,293,656 97.9%

97.5%

Over Base Property Tax $8,237,977 Guaranteed Tax Base

*NRD $342,212

Guaranteed Tax Base

*NRD

$9,229,211

$0

Local Base Property Tax= $5,386,177

Local Base Property Tax= $6,484,659

Non-Levied Revenue $1,856,660 Special Education $1,497,010

Non-Levied Revenue $4,371 Special Education $1,514,976

80% Base Budget $39,044,360

80% Base Budget $38,285,395

$7,943,783

Over Base Property Tax $8,237,977

Direct State Aid $18,905,729  Data for Achievement $152,008 Indian Ed for All $158,653 American Indian Achievement Gap $233,453 At Risk $302,930 Quality Educator $1,835,485

Numbers are rounded to the nearest whole dollar.  Additional funding component added by the legislation in 2013 *Natural Resource Development Payment added 2013 Legislative Session

10

Direct State Aid $19,136,476  Data for Achievement $0 Indian Ed for All $160,563 American Indian Achievement Gap $243,180 At Risk $293,415 Quality Educator $1,823,712

2017-18 HIGH SCHOOL GENERAL FUND FUNDING COMPONENT BREAKDOWN

High School

High School

2016-17

2017-18

100% Maximum-$23,226,076

100% Maximum-$23,140,511

Voted Levy Potential $85,565

Voted Levy Potential $99,027

Budget $23,140,511

Budget $23,041,485 99.6%

99.6%

Over Base Property Tax $4,423,049

Guaranteed Tax Base

*NRD

Guaranteed Tax Base

$3,690,312

$169,852

$4,175,217

*NRD

Local Base Property Tax= $2,945,007

Local Base Property Tax= $3,395,399

Non-Levied Revenue $826,381 Special Education $603,986

Non-Levied Revenue $8,135 Special Education $605,829

80% Base Budget $18,581,551

80% Base Budget $18,399,682

Over Base Property Tax $4,423,049

Direct State Aid $9,368,677  Data for Achievement $62,179 Indian Ed for All $64,898 American Indian Achievement Gap $81,510 At Risk $81,680 Quality Educator $768,828

Numbers are rounded to the nearest whole dollar.  Additional funding component added by the legislation in 2013 *Natural Resource Development Payment added 2013 Legislative Session

11

$0

Direct State Aid $9,325,604  Data for Achievement $0 Indian Ed for All $64,614 American Indian Achievement Gap $80,850 At Risk $79,162 Quality Educator $756,753

GENERAL FUND FUNDING COMPONENT SUMMARY

Combined Maximum Budget Adopted Budget Over Base Property Guaranteed Tax Base (GTB) Natural Resource Development (NRD) Local Base Property Non Levy Revenue Special Education (SPED) Direct State Aid (DSA) Data for Achievement Indian Education for All American Indian Achievement At Risk Quality Educator

16-17 $ 71,107,499 $ 70,007,445 $ 12,661,026 $ 11,634,095 $ 512,064 $ 8,331,184 $ 2,683,041 $ 2,100,996 $ 28,274,406 $ 215,689 $ 223,551 $ 314,963 $ 384,610 $ 2,604,313

17-18 $ 71,656,038 $ 70,335,141 $ 12,661,026 $ 13,404,428 $ $ 9,880,058 $ 12,506 $ 2,120,805 $ 28,462,080 $ $ 225,177 $ 324,030 $ 372,577 $ 2,580,465

Difference $ 548,539 $ 327,696 $ $ 1,770,333 $ (512,064) $ 1,548,874 $ (2,670,535) $ 19,809 $ 187,674 $ (215,689) $ 1,626 $ 9,067 $ (12,033) $ (23,848)

SB261

$ $ $

(11,171) (41,762) (215,689)

$

(1,863)

Elementary High School Total $ 426,722 $ (99,026) $ 327,696 Revenue Reduction from SB 270 $ (270,485) Total Operating General Fund Budget Increase $ 57,211

Essential Understandings  No mill levy election as held for the General Fund Budget  The High School Technology Levy failed in May, therefore there was no increase in the existing technology mills.  Some of the increases and decreases in the General Fund can be attributed to an increase (elementary) or decrease (high school) in enrollment as they are funded on a per student basis.  Inflationary increases on certain State Funding Components were set by the legislature to .5%. The inflationary rate which was established at 1.38% at the start of the session, was reduced to .5% by the end. Senate Bill 261 pr ovided for mandator y r eductions.  Therefore, GFPS will not receive $270,485 in projected revenue.  Special Education payments were reduced.  At Risk payment revenue was reduced.  Revenue for Data for Achievement payments was eliminated (-$215,689)

Summary Information

General Fund Adopted Budget (Increase/Decrease)

Local Base Taxpayer Increase

$ 1,098,482 $ 450,392 $ 1,548,874

State Contributions Guaranteed Tax Base (GTB) Natural Resource Development (NRD) Non Levy Revenue Special Education (SPED) Direct State Aid (DSA) Data for Achievement Indian Ed for All Amer. Indian Achievement At Risk Quality Educator

$ 1,285,428 $ (342,212) $ (1,852,289) $ 17,966 $ 230,747 $ (153,798) $ 1,910 $ 9,727 $ (9,515) $ (11,773) Total

$ $ $ $ $ $ $ $ $ $

484,905 (169,852) (818,246) 1,843 (43,073) (61,892) (284) (660) (2,518) (12,075)

Formula Change $ 1,770,333 Same Formula $ (512,064) Eliminated $ (2,670,535) Eliminated $ 19,809 Inflation $ 187,674 Inflation $ (215,689) Eliminated $ 1,626 Inflation $ 9,067 Inflation $ (12,033) Reduced $ (23,848) Same Formula $ (1,445,661)

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Other Legislative Changes:  Senate Bill 307 allows for up to 10 permissive mills per District for Facilities Improvements (Building Reserve Sub Fund).  Guaranteed Tax Base Revenue increased by $1,770,333.  The Natural Resource Development Payment was eliminated (-$512,064).  State Block Grants, also known as Non Levy Revenue, were eliminated by legislative action (-$2,670,535).  In total, changes to the school funding formula shifted $1,548,874 to local taxpayers.  In total, Legislative changes decreased the State portion of school funding by $1,445,661. School Bond Information  $98.8 million bond levy was approved on October 4, 2016.  Bonds in the amount of $58,710,000 were sold in February, 2017.  Payments due on the bond during the 201718 school year are $8,861,626.  Total mills for the payments are 22.61. The impact on a $100,000 house is approximately $30.98 per year. $2.58/month  Legislative changes made during the session eliminated State support for school bonds.

GENERAL FUND - 01 The General Fund Budget finances the general maintenance and operational costs and instructional costs except for supplemental grant monies. It is a budgeted fund that requires a voted levy to increase the budget until the District reaches the maximum budget allowed. PURPOSE—This fund is used for the instructional programs and general operations of the school district. Budget Limits are established per MCA 20-9-308. VOTING REQUIREMENTS—Voter approval is necessary for a district to increase Over-BASE taxes from the prior year. (MCA 20-9-308 and 20-9-353).

General Fund Year

Elementary

High School

Total

2002-03

$33,311,847 $33,338,743 $33,338,743 $34,768,901 $35,751,871 $37,916,871 $38,291,930 $39,494,246 $40,688,708 $40,550,000 $41,768,780 $42,869,157 $44,930,778 $46,537,326 $46,866,934 $47,293,657

$18,510,995 $18,635,995 $19,111,995 $19,611,995 $20,543,161 $22,020,523 $22,141,889 $22,778,765 $23,214,809 $22,005,500 $21,918,253 $21,822,408 $22,470,047 $22,839,417 $23,140,510 $23,041,485

$51,822,842 $51,974,738 $52,450,738 $54,380,896 $56,295,032 $59,937,394 $60,433,819 $62,273,011 $63,903,517 $62,555,500 $63,687,033 $64,691,564 $67,400,825 $69,376,743 $70,007,444 $70,335,142

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Total $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000

$10,000,000 $0

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Budget Report- 01 General Fund FY2017-18 07 Cascade

PART I. CERTIFIED BUDGET DATA ANB BY Budget Unit:

E1 M1

* indicates that the 3 year average ANB was used to

A Direct State Aid (I-A) B Mandatory Non-Isolated (I-B) C Quality Educator (I-C) D At Risk Student (I-D) E Indian Education For All (I-E) F American Indian Achievement Gap (I-F) G Data For Achievement (I-G) H State Spec Ed Allowable Cost Pymt to Districts (I-H) I State Special Education Related- Services Pymt to Coop (I-I) J District GTB Subsidy Per Elementary Base Mill (I-J) K District GTB Subsidy Per High School Base Mill (I-K) PART II. GENERAL FUND BUDGET LIMITS

Great Falls K-6 5,936.00 Great Falls 7-8 1,530.00 Great Falls 9-12 3,054.00 Elementary High School 19,136,475.61 9,325,604.33 0.00 0.00 1,823,711.89 756,752.82 293,414.67 79,161.78 160,563.12 64,614.00 243,180.00 80,850.00 153,797.82 61,891.50 1,514,976.18 605,829.24 0.00 0.00 195,162.00 N/A N/A 172,032.00 Elementary

Prior Year Budget Data: A ANB (II-A) B BASE Budget Limit (II-B) C Maximum Budget Limit (II-C) D Over-BASE Levy As Submitted on Budget (II-D) E Adopted Budget (II-E) Current Year Budget Data: F % Special Education in Maximum Budget (II-F) G BASE Budget (Minimum Budget Amount Required) (II-G) H Maximum Budget Limit (II-H) I Highest Budget Without a Vote (II-I) J Highest Budget (II-J) K Highest Voted Amount (II-K) L Amount Approved on Ballot by Voters (II-L) M Adopted Budget (II-M) PART III. GENERAL FUND BALANCES FOR BUDGET AS OF JUNE 30 A Operating Reserve (961) (III-A) B TIF Operating Reserve (962) (III-B) C Excess Reserves (III-C) 1. Reserve for Protested/Delinquent Taxes (963) (III-C1) 2. Reserve for Tax Audit Receipts (964) (III-C2) D Unreserved Fund Balance Reappropriated (970) (III-D) 1. Prior Year Excess Reserves Funding Over-BASE (970a) (III-D1) 2. Remaining Fund Balance Available (970B) (III-D2) 3. TIF Fund Balance Re-Appropriated (970c) (III-D3) E TOTAL GENERAL FUND BALANCE FOR BUDGET (TFS48) (III-E)

High School

Total 28,462,079.94 0.00 2,580,464.71 372,576.45 225,177.12 324,030.00 215,689.32 2,120,805.42 0.00 195,162.00 172,032.00 Total

7,466.00 3,054.00 38,614,098.55 18,671,882.90 47,881,422.97 23,226,076.31 8,237,976.54 4,423,049.10 46,866,934.04 23,140,511.16

10,520.00 57,285,981.45 71,107,499.28 12,661,025.64 70,007,445.20

100.00 100.00 39,044,360.07 18,581,550.64 48,515,527.26 23,117,578.08 47,293,656.88 23,041,484.65 48,515,527.26 23,140,511.16 1,221,870.38 99,026.51 0.00 0.00 47,293,656.88 23,041,484.65

57,625,910.71 71,633,105.34 70,335,141.53 71,656,038.42 1,320,896.89 0.00 70,335,141.53

Elementary High School 4,672,254.00 2,304,148.47 0.00 0.00 0.00 244,229.98 0.00 244,229.98 0.00 0.00 0.00 28,095.82 0.00 0.00 0.00 28,095.82 0.00 0.00 4,672,254.00 2,576,474.27

Total 6,976,402.47 0.00 0.00 0.00 28,095.82 0.00 28,095.82 0.00 7,248,728.27

PART V. GENERAL FUND WORKSHEET Elementary General Fund Budget A Adopted General Fund Budget 1. BASE Budget Limit 2. Over-BASE Budget

(V-A) (V-A1) (V-A2) 14

High School

47,293,656.88 23,041,484.65 39,044,360.07 18,581,550.64 8,249,296.81 4,459,934.01

Total 70,335,141.53 57,625,910.71 12,709,230.82

Budget Report- 01 General Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Funding the BASE Budget Elementary High School B Direct State Aid (V-B) 19,136,475.61 9,325,604.33 1. Direct State Aid Paid By State (V-B1) 19,136,475.61 9,325,604.33 2. Direct State Aid Paid By Non-Isolated District (V-B2) 0.00 0.00 C Natural Resource Development (V-C) 0.00 0.00 D Quality Educator (V-D) 1,823,711.89 756,752.82 E At Risk Student (V-E) 293,414.67 79,161.78 F Indian Education For All (V-F) 160,563.12 64,614.00 G American Indian Achievement Gap (V-G) 243,180.00 80,850.00 H Data For Achievement (V-H) 153,797.82 61,891.50 I Special Education Allowable Cost Payment (V-I) 1,514,976.18 605,829.24 J Remaining Fund Balance Available (V-J) 0.00 28,095.82 K Non-Levy Revenue (V-K) 4,370.60 8,135.36 1. Actual Non-Levy Revenue (V-K1) 4,370.60 8,135.36 2. Anticipated Non-Levy Revenue (V-K2) 0.00 0.00 3. TIF Applied To Base Budget (V-K3) 0.00 0.00 L Other Non-Levy Revenue (V-L) 0.00 0.00 M BASE Levy Requirements (V-M) 15,713,870.18 7,570,615.79 1. State Guaranteed Tax Base Aid (V-M1) 9,229,210.98 4,175,216.64 2. *District Property Tax Levy To Fund BASE (BASE Levy) (V-M2) 6,484,659.20 3,395,399.15 N **Subtotal of BASE Budget Revenue (V-N) 39,044,360.07 18,581,550.64 Funding the Over-BASE Budget O Fund Balance & Non-Levy Revenue Available to Fund Over-BASE (V-O) 0.00 0.00 P Over-BASE Only Revenues (V-P) 11,320.27 36,884.91 1. Prior Year Excess Reserves Reappropriated (Over-BASE (V-P1) Levy) 0.00 0.00 2. Tuition (V-P2) 11,320.27 36,884.91 3. Flexible Non-Voted Levy Authority Transferred from (V-P3) 0.00 0.00 4. Oil & Gas Revenues (V-P4) 0.00 0.00 5. TIF Applied To OverBase Budget (V-P5) 0.00 Q District Property Tax Levy to Fund Over-BASE Budget (Over-BASE (V-Q) Levy) 8,237,976.54 4,423,049.10 R Subtotal of Over-BASE Revenue (V-R) 8,249,296.81 4,459,934.01 Mill Levies S District Non-Isolated Mills (V-S) 0.00 0.00 T BASE Mills- Elementary (V-T) 47.29 0.00 U BASE Mills- High School (V-U) 0.00 24.27 V

Over-BASE Mills 1. District Property Tax Levy Mills 2. Flexible Non-Voted Levy Authority W Total General Fund Mills Adopted Budget Budget Uses Expenditure Budget Add to Fund Balance TIFFund Balance for Budget

Total 28,462,079.94 28,462,079.94 0.00 0.00 2,580,464.71 372,576.45 225,177.12 324,030.00 215,689.32 2,120,805.42 28,095.82 12,505.96 12,505.96 0.00 0.00 0.00 23,284,485.97 13,404,427.62 9,880,058.35 57,625,910.71 0.00 48,205.18 0.00 48,205.18 0.00 0.00 0.00 12,661,025.64 12,709,230.82 0.00 47.29 24.27

(V-V) (V-V1) (V-V2) (V-W) 0001

Elementary High School 60.06 31.63 60.06 31.63 0.00 0.00 107.35 55.90 47,293,656.88 23,041,484.65

91.69 91.69 0.00 163.25 70,335,141.53

0002 0003 TFS47

47,293,656.88 23,041,484.65 0.00 0.00 0.00 0.00

70,335,141.53 0.00 0.00

15

Total

Budget Report- 01 General Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Estimated Funding Sources Unreserved Fund Balance Reappropriated Direct State Aid Quality Educator At Risk Student Indian Education For All American Indian Achievement Gap State Spec Ed Allowable Cost Pymt to Districts Data For Achievement Natural Resource Development State Guaranteed Tax Base Aid Actual Non-Levy Revenue Tax Title and Property sales Interest Earnings Revenue from Community Services Activities Other Revenue from Local Sources Rentals Contributions/Donations from Private Sources Textbook Sales and Rentals Fees- Users/Resale of Supplies Services Provided Other School Districts or Coops Services Provided Other Local Governmental Units Summer School Fees State Payment in Lieu of Taxes- FWP Anticipated Non-Levy Revenue- BASE Oil & Gas Revenues - BASE Budget Coal Gross Proceeds State School Block Grant State Combined Fund School Block Grant SB96 Combined Block Grant Reimbursement Federal Revenue in Lieu of Taxes

0970 3110 3111 3112 3113 3114 3115 3116 3118 3120

Total 28,095.82 28,462,079.94 2,580,464.71 372,576.45 225,177.12 324,030.00 2,120,805.42 215,689.32 0.00 13,404,427.62

1130 1510 1800 1900 1910 1920 1940 1945 1950 1960 1981 3302

0.00 4,370.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 2,789.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,346.32 0.00 0.00

0.00 7,159.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,346.32 0.00 0.00

0171 1123 3444 3445 3447 4800

0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00

Anticipated Non-Levy Revenue- Over-BASE Oil & Gas Revenues - OverBASE Budget Individual Tuition Tuition from School Dists Within State Tuition from School Dists Outside State State Tuition for State Placement

Elementary High School 0.00 28,095.82 19,136,475.61 9,325,604.33 1,823,711.89 756,752.82 293,414.67 79,161.78 160,563.12 64,614.00 243,180.00 80,850.00 1,514,976.18 605,829.24 153,797.82 61,891.50 0.00 0.00 9,229,210.98 4,175,216.64

0172 1310 1320 1330 3117

Elementary High School 0.00 0.00 11,320.27 36,884.91 0.00 0.00 0.00 0.00 0.00 0.00

Total 0.00 48,205.18 0.00 0.00 0.00

Other Non-Levy Revenue District Levy- Distn of Pr Yr's Prot/Dlq Taxes District Levy- Dept of Rev Tax Audit Receipts Penalties and Interest on Taxes Other Revenue Residual Equity Transfers In

1117 1118 1190 9100 9710

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

Levies Mandatory Non-isolated Levy BASE Levy Over-BASE Levy District Tax Levy

1110(a) 1110(b) 1110 (c) 1110

0.00 0.00 6,484,659.20 3,395,399.15 8,237,976.54 4,423,049.10 14,722,635.74 7,818,448.25

0.00 9,880,058.35 12,661,025.64 22,541,083.99

Total Estimated Revenues to Fund Adopted Budget Estimated Revenues Exceeding Adopted Budget

0004 0004a

47,293,656.88 23,041,484.65 0.00 0.00

70,335,141.53 0.00

16

TRANSPORTATION FUND – 10 The Transportation Fund is used to pay for the costs of getting students from home to school and back. This can include the purchase of buses, building a bus barn, bus maintenance, bus driver salaries and benefits, hiring a private contractor to run the transportation program, and transportation reimbursement contracts. The State and County share in funding “on-schedule costs” that are based on bus routes and mileage contracts with parents. Additional funding is provided through fund balance re-appropriated, non-levy revenues and a district transportation fund levy. PURPOSE—The transportation fund can be used to support the costs of transporting students between home and school, including:  costs of yellow school bus purchase, repair, maintenance and operations;  safety activities related to bus driver training, crosswalk attendants, etc.;  bus storage facilities and maintenance;  payments to parents for individual transportation contracts; and  bus service contracts Costs of field trips, travel costs related to extracurricular activities and athletics, and staff travel costs are NOT ALLOWABLE costs of the fund. Reimbursements are based on eligible transportee (a student who resides at least 3 miles from the nearest school), bus route miles and rated capacity of the bus, non-bus miles, and individual transportation contracts. OPI pays State reimbursement on: Sept. 1—50% of previous year’s state reimbursement By March 31—1st semester reimbursement less amount paid on Sept. 1 By June 30—Remaining owed for 1st and 2nd semesters County pays County reimbursement after receiving the State payment report, usually in March/April and June. State funding is paid based on semi-annual claims to OPI in February for first semester and in May for second semester. The State will pay up to the lesser of the State funding calculated on the budget or one-half (1/2) of the total fund budget. The State pays the District for first semester in March and for second semester in June. At the same time, the County directs the County Treasurer to pay the District the County’s portion of the funding (MCA 20-10-146). VOTING REQUIREMENTS—The transportation fund tax levy is permissive. Consequently, it is not subject to voter approval. Reserve Limit: 20% of ensuing year’s budget. Re-appropriated amounts are applied first to reduce the local tax levy, then County reimbursement, then State reimbursement.

Transportation Fund Levy Year

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Elementary High School

Total

$1,224,746 $528,943 $1,753,689 $1,252,674 $538,483 $1,791,157 $1,279,132 $548,453 $1,827,585 $1,309,282 $558,516 $1,867,798 $1,361,790 $599,230 $1,961,020 $1,689,470 $725,050 $2,414,520 $1,892,703 $773,957 $2,666,660 $1,949,485 $797,175 $2,746,660 $1,999,857 $817,368 $2,817,225 $2,070,300 $898,800 $2,969,100 $2,692,990 $831,713 $3,524,703 $2,781,340 $831,214 $3,612,554 $2,781,340 $831,214 $3,612,554 $2,888,225 $905,348 $3,793,573 $3,083,722 $950,615 $4,034,337 $3,160,273 $1,096,368 $4,256,641

Trend Data $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0

17

Budget Report– 10 Transportation Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

3,160,273.00

1,096,368.01

3,793,573.00

Expenditure Budget

0002

3,160,273.00

1,096,368.01

4,256,641.01

Add To Fund Balance

0003

0.00

0.00

0.00

On-Schedule

0005

532,022.55

215,439.63

747,462.18

Contingency

0006

53,202.26

21,543.96

74,746.22

Over-Schedule

0011

2,575,048.19

859,384.42

3,434,432.61

TIFFund balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget Operating Reserve

TFS48

1,264,097.10

534,838.37

1,798,935.47

0961

632,054.60

219,273.60

851,328.20

Unreserved Fund Balance Reappropriated

0970

632,042.50

315,564.77

947,607.27

Coal Gross Proceeds

1123

0.00

0.00

0.00

Individual Transportation Fees

1410

0.00

0.00

0.00

Trans Fees from Other School Districts within State

1420

0.00

0.00

0.00

Trans Fees from Other Schools Outside State

1430

0.00

0.00

0.00

Other Transportation Fees

1440

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Tuition for State Placement

3117

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State School Block Grant

3444

80,755.83

36,771.52

117,527.35

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

County On-Schedule Trans Reimb

2220

292,612.40

118,491.79

411,104.19

State On-Schedule Trans Reimb

3210

292,612.41

118,491.80

411,104.21

District Tax Levy

1110

1,862,249.86

507,048.13

2,369,297.99

District Mills

0999

13.58

3.63

17.21

Total Estimated Revenues to Fund Adopted Budget

0004

3,160,273.00

1,096,368.01

4,256,641.01

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Transportation Schedule Data

Estimated Funding Sources

Reimbursements

18

TUITION FUND – 13 The Tuition Fund is used in limited cases to pay tuition for a student who attends school outside their district of residence. Usually, the District pays tuition only for students the trustees have placed in another district or where geographic conditions make it impractical for the student to attend in student’s own district. Rates are set under MCA 20-5-323 based on 20% of the per-ANB entitlement for the year of attendance. Special education add-on rates are calculated under ARM 10.16.3818. Funding sources are fund balance re-appropriated, direct aid (for out-of-state tuition), non-levy revenue and a non-voted district tax levy. Effective July 1, 2013 a district may include in its tuition levy an amount necessary to pay for the full costs of providing FAPE (free and appropriate Public Education) to any child with a disability who lives in the district, and the amount of the levy imposed is limited to the actual cost of service under each child’s IEP, less applicable state and federal special education funding. LEVY CALCULATION - Actual cost of service(s) under the child’s IEP minus:  The student’s state special education payment  The student’s federal special education payment  The student’s per ANB amount  The prorated portion of the district’s basic entitlement for each qualifying student  The prorated portion of the district’s general fund payments (Quality Educator, At-Risk, Indian Education for All, and American Indian Achievement Gap) The Montana Office of Public Instruction site has an In-District Special Education Permissive Levy Tuition Calculator Spreadsheet for school districts to use to help determine the potential tuition amount which may be levied. http://opi.mt.gov/pdf/SchoolFinance/Tuition/FY16TuitionLevySpreadsheet.xlsx Under 41-5-1807 MCA, Tuition is for students detained in youth detention centers for more than nine consecutive days, the county where the detention center is located may charge the student’s district of residence $20/day. Invoices are sent by June 30. District must pay by July 15.

Reserve Limit: None Fund balance is re-appropriated to support the ensuing year’s budget.

Tuition Fund Levy Year

2014-15

Elementary High School $176,782

$16,686

Total

Total

% of Maximum Calculation

$193,687

50%

$1,400,000

$1,200,000 $1,000,000 $800,000

2015-16

$200,985

$105,750

$306,735

75%

$600,000 $400,000

2016-17

$223,365

$108,111

$331,476

75%

2017-18

$1,050,933

$119,651

$1,170,584

75%

$200,000 $0 2014-15

19

2015-16

2016-17

2017-18

Budget Report– 13 Tuition Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

1,050,993.00

119,651.00

1,170,644.00

Expenditure Budget

0002

1,050,993.00

119,651.00

1,170,644.00

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget

TFS48

0.00

0.00

0.00

Unreserved Fund Balance Reappropriated

0970

0.00

0.00

0.00

Coal Gross Proceeds

1123

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

Direct State Aid

3110

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

District Tax Levy

1110

1,050,993.00

119,651.00

1,170,644.00

District Mills

0999

7.66

0.86

8.52

Total Estimated Revenues to Fund Adopted Budget

0004

1,050,993.00

119,651.00

1,170,644.00

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Estimated Funding Sources

20

RETIREMENT FUND – 14 The Retirement Fund is used to pay the school district’s share of specific employer contributions, including social security and Medicare taxes, Teacher’s Retirement System (TRS) and Public Employees Retirement System (PERS) contributions, and state unemployment insurance. It is funded by the countywide retirement levy. Senate Bill 424, enacted by the 2003 Montana Legislature and signed into law by the Governor, requires school districts to use federal funds for employer contributions to the retirement, federal social security and unemployment insurance systems for all employees whose salaries are paid from a federal funding source, excluding Impact Aid and school foods. PURPOSE—This fund is used to pay the employer contributions to the Teachers’ Retirement System, Public Employees’ Retirement System, unemployment insurance, social security and Medicare for the following: 1) A district employee whose salary and health-related benefits, if any, are paid from state or local funding sources; 2) A cooperative employee whose salary and health-related benefits, if any, are paid from the cooperative’s interlocal agreement fund if the fund is supported solely from district’s general funds and state special education allowable cost payments (or are paid from the miscellaneous programs fund from money received from the Medicaid program); 1) A district employee whose salary and health-related benefits, if any, are paid from the district’s school food services fund; 2) A district employee whose salary and health-related benefits, if any, are provided to the employee, are paid from the district Impact Aid fund. The fund CANNOT be used to pay: 1) retirement incentives; 2) any portion of a retirement fund contribution on behalf of an employee (i.e., only the employer’s contributions can be paid from the fund; or 3) any amount paid to an employee directly (i.e., only payments to TRS, PERS, FICA, and unemployment insurance carriers are allowable). (MCA 20-9-501) BUDGET—In order for the county to accurately determine the levy, districts must submit a list of all employment positions and their salaries to the County Superintendent when submitting the adopted budget. (MCA 20-9-132) FUNDING—District non-levy revenue and fund balance re-appropriated reduces the county retirement distribution requirement. The county retirement distribution is funded by countywide levy, county oil and gas taxes, county coal gross proceeds taxes, county school retirement fund block grant (20-0-631, MCA), and Guaranteed Tax Base Aid if the county retirement mill value per ANB is less than the statewide mill value per ANB. This describes GFPS. RESERVES—An operating reserve of up to 20% of the ensuing year’s budget is permitted. This percentage was reduced from 35% during the 2013 legislation session. Shortfalls in the retirement fund can present significant problems to both the District and County.

Retirement Fund Budget Year

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Elementary High School

$4,162,586 $4,277,213 $4,282,800 $4,244,000 $4,397,426 $4,485,375 $5,063,308 $5,200,000 $5,253,938 $5,427,826 $5,617,800 $5,700,000 $6,000,001 $6,400,000 $6,800,000 $7,100,000

$2,225,927 $2,224,916 $2,240,297 $2,270,175 $2,434,103 $2,641,476 $2,728,893 $2,800,000 $2,811,751 $2,845,000 $2,944,575 $3,000,000 $3,240,000 $3,520,000 $3,900,000 $4,280,000

Total

$6,388,513 $6,502,129 $6,523,097 $6,514,175 $6,831,529 $7,126,851 $7,792,201 $8,000,000 $8,065,689 $8,272,826 $8,562,375 $8,700,000 $9,240,001 $9,920,000 $10,700,000 $11,380,000

Trend Data $12,000,000 $10,000,000 $8,000,000

$6,000,000 $4,000,000 $2,000,000 $0

21

Budget Report– 14 Retirement Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

7,100,000.00

4,280,000.00 11,380,000.00

Expenditure Budget

0002

7,100,000.00

4,280,000.00 11,380,000.00

Add To Fund Balance

0003

0.00

0.00

0.00

Fund Balance for Budget

TFS48

1,253,446.57

1,608,077.61

2,861,524.18

Operating Reserve Unreserved Fund Balance Reappropriated

0961 0970

1,253,433.65 12.92

856,000.00 752,077.61

2,109,433.65 752,090.53

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

County Retirement Distribution

2240

7,099,987.08

3,527,922.39 10,627,909.47

Total Estimated Revenues to Fund Adopted Budget

0004

7,100,000.00

4,280,000.00 11,380,000.00

Estimated Revenues Exceeding Adopted Budget

0004a

Budget Uses

Estimated Funding Sources

22

0.00

0.00

0.00

ADULT EDUCATION FUND – 17 State law authorizes districts to establish an adult education program (MCA 20-7-702). The program may provide any area of instruction approved by the trustees, including basic and secondary general education and vocational/ technical education. Revenue sources for this fund are fund balance re-appropriated, non-levy revenue (including student fees) and a non-voted district tax levy. PURPOSE—A district that operates an adult education program must use this fund. Taxes levied for support of the adult education program and student fees for adult education are deposited in this fund pursuant to MCA 20-7-705. VOTING REQUIREMENTS—Tax levies are permissive. No voter approval is required for this fund.

Adult Education Fund Levy Year

2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Elementary High School

$141,625 $143,605 $146,856 $146,175 $151,535 $162,330 $212,330 $297,204 $306,679 $310,782 $305,098 $280,750 $290,000 $335,570 $337,250 $337,250

$178,253 $170,372 $171,722 $170,170 $184,775 $185,225 $244,652 $300,000 $348,515 $348,515 $322,325 $346,325 $345,625 $300,055 $302,500 $302,500

Total

$319,878 $313,977 $318,578 $316,345 $336,310 $347,555 $456,982 $597,204 $655,194 $659,297 $627,423 $627,075 $635,625 $635,625 $639,750 $639,750

Data Trend $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0

23

Budget Report– 17 Adult Education Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

337,250.00

302,500.00

639,750.00

Expenditure Budget

0002

337,250.00

302,500.00

639,750.00

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget

TFS48

127,350.52

93,124.83

220,475.35

Operating Reserve Unreserved Fund Balance Reappropriated

0961 0970

0.00 127,350.52

0.00 93,124.83

0.00 220,475.35

Coal Gross Proceeds

1123

0.00

0.00

0.00

Fees for Adult Education

1340

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

District Tax Levy

1110

209,899.48

209,375.17

419,274.65

District Mills

0999

1.53

1.50

3.03

Total Estimated Revenues to Fund Adopted Budget

0004

337,250.00

302,500.00

639,750.00

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Estimated Funding Sources

24

TECHNOLOGY FUND – 28 The Technology Fund is used for the purchase, rental, repair and maintenance of technology equipment and computer network access, associated technical training for school district personnel, cloud computing services, including any subscription or any license-based or pay-per-use service that is accessed over the internet or other remote network to meet the district’s information technology and other needs. It is funded by state technology grant, fund balance re-appropriated, non-levy revenues, state, federal and private grants or donations that will be spent in the budget year, and a district tax levy. The district tax levy is limited to 20% of the cost of the computer equipment and computer network access, not to exceed 150% of the cost over time. Our district collects $150,000 for Elementary District and $75,000 for High School District per year. The district’s voters must approve any increase in taxes from the previous year. The 2013 legislature made changes to Technology Fund levies as indicated by the information below: PURPOSE—This fund is used for: 1) Purchasing, renting, repairing or maintaining technology equipment and computer network access using the State Technology Grant (“Timber Money”) under MCA 20-9-534 and associated tax levies under MCA 209-533; and 2) State, Federal and private grants and donations received for the purpose of funding technology or technologyassociated training. Levies approved prior to July 1, 2013  Can be permanent or durational  Annual levy cannot exceed 20% of the original cost of equipment owned by the district  Amount levied over time cannot exceed 150% of the original cost of the equipment  $$ can be used for equipment, network access and training of school personnel

Levies approved after July 1, 2013  May not exceed 10 years  Can be based on all allowable costs listed in the statute (equipment, cloud storage, training, etc.)  Districts with an existing perpetual levy can  Ask for an increase in the amount of the levy to cover cloud computing and training, and/or  Seek relief from tracking depreciation under existing levy  Can propose a duration for each, not to exceed 10 years

Employer contributions for Social Security, Medicare, TRS, PERS, and unemployment insurance may not be paid from this fund. Reserves limit = none Re-appropriate all fund balance to support the ensuing year’s budget. May 2017 Tech Levy mail-in ballot vote for $500,000 in high school failed 8189 to 7460.

Technology Year

Elementary High School

2002-2003 $154,835 2003-2004 $305,644 2004-2005 $574,500 2005-2006 $476,000 2006-2007 $622,500 2007-2008 $615,947 2008-2009 $749,400 2009-2010 $802,650 2010-2011 $801,347 2011-2012 $813,816 2012-2013 $813,816 2013-2014 $727,378 2014-2015 $852,681 2015-2016 $1,045,766 2016-2017 $1,263,384 2017-2018 $1,197,243

Total

$76,000 $230,835 $122,000 $427,644 $282,000 $856,500 $354,000 $830,000 $406,500 $1,029,000 $290,000 $905,947 $338,250 $1,087,650 $241,430 $1,044,080 $280,000 $1,081,347 $431,311 $1,245,127 $429,885 $1,243,701 $422,968 $1,150,346 $372,277 $1,224,958 $374,663 $1,420,429 $419,108 $1,682,492 $371,270 $1,568,513

Trend Data $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

25

Budget Report– 28 Technology Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

1,197,243.41

371,269.67

1,568,513.08

Expenditure Budget

0002

1,197,243.41

371,269.67

1,568,513.08

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget Operating Reserve

TFS48 0961

1,047,243.41 0.00

296,269.67 0.00

1,343,513.08 0.00

Unreserved Fund Balance Reappropriated TIF Fund Balance Reappropriated

0970 0973

1,047,243.41 0.00

296,269.67 0.00

1,343,513.08 0.00

Coal Gross Proceeds

1123

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Technology Aid

3281

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

District Tax Levy

1110

150,000.00

75,000.00

225,000.00

District Mills

0999

1.09

0.54

1.63

Total Estimated Revenues to Fund Adopted Budget

0004

1,197,243.41

371,269.67

1,568,513.08

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Estimated Funding Sources

26

FLEXIBILITY FUND – 29 This fund was created by legislative action in 2001 (20-9-543 MCA). Its intent was to provide schools one-time only source of funding which could be used for its own unique circumstances. This fund is used for technology, facility expansion, student assessment and evaluation, curriculum development and other types of expenditures as described in MCA 20-9-543. Under 20-9-544 MCA, the trustees have the option of submitting to the qualified electors of the district to approve a levy in an amount not to exceed 25% of the district’s original allocation. If there is no state payment, there can be no levy. PURPOSE—This fund is used for: 

Technology



Facility/equipment expansion



Student assessment and evaluation



Curriculum development



Training for classroom staff to support delivery of education programs



Classroom teacher housing



Retention of certified staff



Increased energy costs caused by increases since 2001

Reserve limit = none The fund balance is re-appropriated to support the ensuing year’s budget. Beginning July 1, 2020 fund balance limit is 150% of the Maximum General Fund budget. Excess must be remitted to the state.

Flexibility Fund Budget Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary $222,115 $222,115 $232,856 $244,949 $260,000 $283,200 $300,000 $317,271 $324,250 $337,787 $383,494 $341,860 $306,653 $290,964 $302,969 $364,669

High School $75,000 $75,000 $79,903 $85,350 $98,000 $109,385 $115,000 $118,100 $120,500 $130,148 $154,326 $153,306 $13,608 $14,236 $15,075 $47,359

Total $297,115 $297,115 $312,759 $330,299 $358,000 $392,585 $415,000 $435,371 $444,750 $467,935 $537,820 $495,166 $320,261 $305,200 $318,044 $412,028 27

Trend Data $600,000 $500,000 $400,000 $300,000

$200,000 $100,000 $0

Budget Report– 29 Flexibility Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Adopted Budget

High School

Total

0001

364,668.69

47,359.06

412,027.75

Expenditure Budget

0002

364,668.69

47,359.06

412,027.75

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget Operating Reserve

TFS48 0961

305,327.06 0.00

19,112.29 0.00

324,439.35 0.00

Unreserved Fund Balance Reappropriated TIF Fund Balance Reappropriated

0970 0973

305,327.06 0.00

19,112.29 0.00

324,439.35 0.00

Coal Gross Proceeds

1123

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Technology Aid

3281

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

59,341.63

28,246.77

87,588.40

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

District Tax Levy

1110

0.00

0.00

0.00

District Mills

0999

0.00

0.00

0.00

Total Estimated Revenues to Fund Adopted Budget

0004

364,668.69

47,359.06

412,027.75

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Estimated Funding Sources

28

DEBT SERVICE FUND – 50 The Debt Service Fund (20-9-438 MCA) is used to budget and pay for a school district’s bond debt, including principal and interest payments and agent fees, and/or special improvement district payments (SIDs). State equalization aid (known as state reimbursement for school facilities) may be available to school districts that have a district mill value per ANB that is less than the corresponding statewide mill value per ANB. Debt Service Fund revenues also include fund balance re-appropriated, and non-levy revenue. PURPOSE—This fund is used to pay debt service payments for principal and interest on bonds or Special Improvement Districts (SIDs). The expenditure budget of the fund should include both principal and interest payments due on bonds for each fiscal year of the bond term. OPI recommends a district budget and pay the obligations due 1/1 and 7/1 in each budget year.

Debt Service Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary High School Total $3,545 $652,663 $656,208 $3,545 $1,209,422 $1,212,967 $3,545 $563,400 $566,945 $0 $562,745 $562,745 $0 $565,745 $565,745 $0 $561,068 $561,068 $0 $564,530 $564,530 $0 $0 $0 $0 $31,309 $31,309 $0 $0 $0 $0 $179 $179 $0 $194 $194 $0 $908 $908 $0 $914 $914 $0 $1,110 $1,110 $0 $1,110 $1,110 $0 $1,115 $1,115 $2,633,058 $1,799,755 $4,432,813

Trend Data $5,000,000 $4,500,000

$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0

29

Budget Report– 50 Debt Service Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School

Elementary Taxable Value

High School

137,152,958.00 139,856,492.00

Adopted Budget

Total 277,009,450.00

0001

2,633,058.33

1,799,755.04

4,432,813.37

Expenditure Budget

0002

2,633,058.33

1,799,755.04

4,432,813.37

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47 TFS48

0.00 3,579,984.78

0.00 2,152,639.79

0.00 5,732,624.57

0960

0.00

0.00

0.00

0961

3,579,984.78

2,152,639.79

5,732,624.57

Unreserved Fund Balance Reappropriated

0970

0.00

0.00

0.00

TIF Fund Balance Reappropriated

0973

0.00

0.00

0.00

Coal Gross Proceeds

1123

0.00

0.00

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

District Tax Levy

1110

2,633,058.33

1,799,755.04

4,432,813.37

Jurisdiction Mills

0999

19.20

12.87

32.07

Total Estimated Revenues to Fund Adopted Budget

0004

2,633,058.33

1,799,755.04

4,432,813.37

Estimated Revenues Exceeding Adopted Budget

0004a

0.00

0.00

0.00

Budget Uses

Fund Balance for Budget Fund Balance In Sinking Fund Operating Reserve

Estimated Funding Sources

Bond Issues Issue Issue Type Date Elementary Bond 2/21/2017 Total Bond Requirements

Maturity Date 6/30/2037

Outstanding Issue Amount 6/30/18 Principal

Interest

34,675,000.00 34,045,000.00 630,000.00

2,002,058.33

1,000.00 2,633,058.33

Total Debt Service Requirements

Issue Issue Type Date High School Bond 2/21/2017 Total Bond Requirements

Agent Fees

0002 2,633,058.33

Maturity Date 6/30/2037

Bond Issues Outstanding Issue Amount 6/30/18 Principal

Interest

24,035,000.00 23,555,000.00 480,000.00

1,318,755.04

Agent Fees 1,000.00 1,799,755.04

Total Debt Service Requirements

0002 1,799,755.04

30

BUILDING RESERVE FUND – 61 PURPOSE—This fund accumulates funding for the future construction, and equipping or enlarging of school buildings, or for the purpose of purchasing land needed for school purposes, on authority of a voted levy. The funds also can be used for transition costs related to opening or closing a school or replacing a school building or to repay an intercap loan. MCA 20-9-502 LEVY LIMITS AND VOTING REQUIREMENTS—Tax levies are limited by the building reserve election(s):  For a “regular” building reserve project, the annual tax levy is limited to the total authorized by the vote, divided by the numbers of years authorized.  For a “transition” building reserve project, the election may propose up to 5% of the district’s current year maximum general fund budget or $250 per ANB (MCA 20-9-502). The levy for the year may be reduced, but is not required to be reduced, by estimating non-levy revenues.  In the last legislative session Senate Bill 348, which dealt with School Safety allows transfers from any budgeted or non-budgeted fund (except Retirement and Debt Service) to Building Reserve. FY2013, FY2014, FY2015 ONLY - Funds transferred from other funds for SB348 School Safety purposes must be spent on:  Planning for improvements to school safety  Installing or updating locking mechanisms and ingress and egress systems at public school access points  Installing or updating bullet-resistant windows and barriers  Installing or updating emergency response systems Unspent funds remaining as of June 30, 2015 must be transferred back to the originating fund. A building reserve tax authorization may not exceed 20 years for most purposes. The tax authorization for transitional costs may not exceed six (6) years. Transitional costs associated with creating a K-12 district may not exceed three (3) years. Senate Bill 307 allows the District to permissively levy up to 10 mills to create a School Facilities Maintenance account. See page 53 for additional information. Reserve limit - None Fund balance is re-appropriated to fund the ensuing year’s budget.

Building Reserve Year 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary High School $2,694,597 $110,000 $2,040,000 $110,000 $1,700,000 $1,453 $1,620,000 $1,500 $1,700,000 $1,550 $950,000 $1,700 $1,000,000 $33,000 $500,000 $33,262 $100,000 $33,150 $137,511 $33,169 $145,490 $5 $197,840 $21,171 $256,976 $41,736 $238,888 $69,988 $280,806 $41,675 $785,665 $320,400

Total $2,804,597 $2,150,000 $1,701,453 $1,621,500 $1,701,550 $951,700 $1,033,000 $533,262 $133,150 $170,680 $145,495 $219,011 $298,712 $308,876 $322,481 $1,106,065

Trend Data $3,000,000 $2,500,000 $2,000,000 $1,500,000

$1,000,000 $500,000 $0

31

Budget Report– 61 Building Reserve Fund FY2017-18 07 Cascade 0098 Great Falls Elem/ 0099 Great Falls High School Elementary Adopted Budget

High School

Total

0001

785,664.87

320,400.00

1,106,064.87

Expenditure Budget

0002

785,664.87

320,400.00

1,106,064.87

Add To Fund Balance

0003

0.00

0.00

0.00

TIFFund Balance for Budget

TFS47

0.00

0.00

0.00

Fund Balance for Budget Operating Reserve

TFS48 0961

237,056.87 0.00

0.00 0.00

237,056.87 0.00

Unreserved Fund Balance Reappropriated TIF Fund Balance Reappropriated

0970 0973

237,056.87 0.00

0.00 0.00

237,056.87 0.00

Coal Gross Proceeds

1123

0.00

0.00

0.00

Tax Title and Property Sales

1130

0.00

Interest Earnings

1510

0.00

0.00

0.00

Other Revenue from Local Sources

1900

0.00

0.00

0.00

State Payment in Lieu of Taxes- FWP

3302

0.00

0.00

0.00

State Combined Fund School Block Grant

3445

0.00

0.00

0.00

Montana Oil and Gas Tax

3460

0.00

0.00

0.00

Other Revenue

9100

0.00

0.00

0.00

Residual Equity Transfers In

9710

0.00

0.00

0.00

No

No

Budget Uses

Estimated Funding Sources

Use Estimated Non-Levy Revenue to Lower Levies? (Yes or No) District Tax Levy

1110

548,608.00

320,400.00

869,008.00

District Mills

0999

4.00

2.29

6.29

Total Estimated Revenues to Fund Adopted Budget

0004

785,644.87

559,424.00

1,345,068.87

32

EXPENDITURE BUDGETS - ALL BUDGETED FUNDS All Budgeted Funds 2017-18 School Year

Fund

Amount

%

General

70,335,142

77.32%

Transportation

4,256,641

4.68%

Tuition

1,330,179

1.46%

Retirement

11,380,000

12.51%

639,750

0.70%

Technology

1,568,513

1.72%

Flexibility

412,028

0.45%

Building Reserve

1,046,377

1.15%

Total:

90,968,630 100.00%

Adult Education

Adult Education 0.70%

Technology 1.72%

Flexibility 0.45%

Retirement 12.51%

Tuition 1.46% Transportation 4.68%

General 77.32%

33

Building Reserve 1.15%

Great Falls Public Schools Fiscal Year 2016-2017

FAST FACTS

Student Information Afri ca n American, 2.34%

Ethnicity

Multiracial, 6.73%

GFPS High School Graduation Rates

Na tive American, 11.23% Pacific Islander, 0.39%

86 84

As i an, 1.08%

82 80 78

District Average

76

Whi te, 78.24%

74 72 70 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-16

% of Students Engaged in Programs:

% Free/Reduced Lunch Eligibility for AA Counties 2016-17 50 40 35 30 % Free or Reduced Lunch Eligibility for AA Counties 2016-17

25 20

Free and Reduced Lunch: 47.27% Limited English Proficient: 3.16% English Second Language: 0.50% Special Education: 9.91% Homeless: 0.97%

    

45

15

10 5 0 October 3, 2016

% Free or Reduced Lunch Elementary Schools

# of Homeless Students 2005-2017

70

400

60

350

50

300 250

40

200

30

150

20

100 50

10

0 0

$600,000

3000 2500

Dual Credit

$500,000

Total College Credits Earned

Dual Credit Dollars Saved in Tuition Costs

$400,000

2000

2014/15

2014/15

1500

$300,000

2015/16 2016-2017

1000

2015/16 2016/17

$200,000 $100,000

500

$0

0 CMR

GFHS

PGEC

* MT. OPI School Nutrition Programs

CMR

Total

34

GFHS

PGEC

Total

Great Falls Public Schools Fiscal Year 2016-17

FAST FACTS

District Information District Website: www.gfps.k12.mt.us Vision: All kids engaged in learning today……for life tomorrow. Mission: We successfully educate students to navigate their future.

Strategic Plan:

Our Schools:  Established in 1888  Second Largest School District in Montana  Early Learning Family Center– Preschool Program  15 Neighborhood Elementary Schools  2 Middle Schools  2 Comprehensive High Schools  1 Alternative High School  Adult Education Program at Great Falls College MSU

School Food Service & Transportation:

Facility Facts:  Average School Age: 58  Oldest Building: Roosevelt built in 1928  Newest Building: GFHS South Campus built in 1998  Current Public Debt (Bonds): $58,710,000  1.9 million square feet of building space  295 acres of land  Up-to-date Facilities Plan information can be found at: www.gfps.k12.mt.us/facility

Our Staff:

The 2016-17 strategic plan sets forth three main goal areas that are of the highest priority for action in the upcoming school year and beyond. These efforts in continuous improvement include:  Student Achievement– with the goal being to increase student achievement for all students while closing the achievement gap.  Stewardship and Accountability– with the goal being to provide prudent stewardship and accountability of public resources to best support educational opportunity and student success.  Healthy, Safe and Secure Schools– with the goal being to provide all students healthy, safe and secure school environment in which to learn. District Leadership has developed action items for each goal area. The GFPS Strategic Plan may be found at: www.gfps.k12.mt.us/content/about-us

  

 

Total Meals Served: 1,392,460 Breakfast Programs at 17 public schools Free & Reduced Meals served Breakfast: 464,874 Lunch: 655,317 # of Bus Routes: 67 # of Bus Drivers: 94

Teachers Hourly Classified Engineers Aide-Library/Teacher Clerical Principals Medical Related Support Personnel District Administrators Crafts

FTE* 743.9 139.3 92.0 43.3 76.0 29.0 27.3 23.9 15.0 11.0

Technology Specialists Psychologists Supervisors Warehouse Total:

12.0 9.0 6.0 8.0 1235.7

(carpentry, paint, electric, plumbing)

School Construction ranges in date from 1928-2017 1920’s 1 1930’s 4 1940’s 1 1950’s 5 1960’s 9 1970’s 4 1990’s 1 2000’s 0 2010’s* 1

*FTE= Full Time Equivalent i.e.; one person working half-time equals .5 FTE

Our Teachers:   

*in progress

35

Ages: 22 to 66 76.3% Female 530 or 71% have a Master’s degree or higher *3 with a Doctoral degree

Great Falls Public Schools

FAST FACTS

Community Information Top Public Employer Rank Employer Business Type 1 Malmstrom AFB Military 2 Great Falls Public Schools Public School System 3 MT Air National Guard Military 4 City of Great Falls Government 5 Cascade County Government Top Private Employer Rank Employer Business Type 1 Benefis Health System Health care 2 Great Falls Clinic Health Care 3 Wal-Mart Retailer 4 Centene Corp. Insurance Services 5 Albertson’s Grocery Store

Employees 3,590 1,926 1,039 527 517 Employees 3,107 541 413 319 285

Great Falls Community Food Bank The Great Falls Community Food Bank is the main Food Pantry for the community of Great Falls. There are other smaller food pantries run through community groups and churches. Each school in the GFPS district has its own food pantry established and programs such as the Backpack Program have been established to support students during times when school is not in session.

Population Trends Historical population figures for Great Falls, the County and the State are set forth below. According to the U.S. Census Bureau estimates released December 2016, the Elementary District and High School District had 2015 estimated populations of 72,860 and 73,002, respectively.

Year 20151 2010 2000 1990 1980

City of Great Falls 59,638 58,505 56,690 55,125 56,884

Percent of Change 1.93% 3.20 0.43 (3.09) --

Cascade County 82,278 81,327 80,357 77,691 80,696

Percent of Change 1.17% 1.21 3.43 (3.70) --

State of Montana 1,032,949 989,415 902,195 799,065 786,690

_________________ 1 Estimates as of July 1, 2015. Source: U.S. Bureau of the Census and Washington U.S. Census Bureau . - Montana Economy at a Glance, May 2016, Dept. of Labor and Industry https://lmi.mt.gov/Portals/135/Publications/LMI-Pubs/Labor%20Market%20Publications/EAG-0516.pdf *-Outlook 2015– Industry Forecasts & Charts for Northcentral Montana, Great Falls Tribune

36

Percent of Change 4.40% 9.67 12.91 1.60 --

AA DISTRICT TAX COMPARISONS How does Great Falls compare with the Montana AA Districts? 2015-2016 Total School Tax Mills Levied

800 700 Average 603.8

600 500 400 300 200

100 0 Bozeman

Great Falls

Billings

AA District Comparisons 2015-16 MT Property Tax Levies Bozeman Great Falls Billings Elem: 380.76 334.46 390.53 HS: 229.61 209.51 211.98 Total: 610.37 543.97 602.51 Previous Year 584.1 571.8 616.8 Total: Change from 26.27 -27.83 -14.29 previous year: Mills Above or Below the AA 6.5 -59.9 -1.4 Average Source: Montana Tax Foundation 2015-16

Butte

Missoula

Kalispell

Butte Missoula Kalispell 338.02 375.17 428.74 220.71 225.46 261.47 558.73 600.63 690.21

Helena

Helena 388.22 232.46 620.68

Total 2635.9 1591.2 4227.1

602.5

599.2

637.7

651.3

4263.4

-43.77

1.43

52.51

-30.62

-36.3

-45.1

-3.2

86.3

16.8

603.8 Average

37

CASCADE COUNTY K-12 SCHOOL DISTRICT LEVIES 2016 1000 800

MILLS

600 400

200 0 Belt

Cascade

Centerville

Great Falls

Sun River

-200 ELEM

Belt

HS

2016 Total

Cascade

2015 Total

Centerville

Difference

Great Falls

Sun River

ELEM

355.65

339.45

528.82

334.46

502.98

HS

242.55

227.19

295.8

209.51

288.65

2016 Total

598.2

566.64

824.62

543.97

791.63

2015 Total

674.97

654.3

866.24

573.33

829.75

Source: Montana Tax Foundation 2015-16

Per Pupil Expenditure Trends by Legal Entity Fiscal Year: FY2016 >> State/County: Cas cade - 07

Le gal Entity

FY2009 FY2010 FY2011

FY2012 FY2013 FY2014 FY2015 FY2016

Cas cade - 07 Belt Elem - 0112 Belt H S - 0113 Cascade Elem - 0101

9,368

10,104

10,456

9,838

10,454

10,043

10,497

9,234

12,564

14,322

14,575

14,294

15,912

15,142

16,449

16,254

9,746

12,912

12,075

11,193

11,243

11,210

11,920

12,479

Cascade H S - 0102

11,442

12,410

11,899

12,443

12,881

14,414

16,280

19,539

Centerville Elem - 0104

10,710

13,502

15,127

12,800

12,196

10,459

10,870

10,562

Centerville H S - 0105

13,448

14,873

14,403

13,852

14,915

15,323

15,677

15,478

Great Falls Elem - 0098

7,052

7,268

8,119

8,234

8,279

8,934

9,308

9,182

Great Falls H S - 0099

9,272

10,867

9,102

9,168

9,033

8,799

8,998

9,232

Simms H S - 0118

12,291

13,542

14,435

12,959

12,991

14,339

15,009

15,430

Sun River Valley Elem - 1225

10,910

12,418

12,481

12,585

13,026

13,185

13,132

14,248

8,784

9,605

9,964

9,216

9,636

10,395

10,588

10,348 10,318

Ulm Elem - 0131 Vaughn Elem - 0127

11,769

11,594

12,896

11,029

11,169

10,116

10,681

Total County - Cas cade - 07

8,169

8,931

8,938

8,930

8,946

9,276

9,620

9,607

Pe rce nt Change

5.1%

9.3%

0.1%

-0.1%

0.2%

3.7%

3.7%

-0.1%

Includes all f unds, except Funds 17, 60, 70-80, 81, 84, 85 Building, Enterprise Type, Adult Ed, and Trust Funds. Transf er betw een f unds, districts and special education coops are excluded. Tuition betw een districts and ref unding bonds are also excluded.

**Does not include Deep Creek Elementary

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COMMON ACRONYMS USED IN K-12 EDUCATION AND POLICIES ADA – Americans With Disabilities Act ADD/ADHD – Attention Deficit Disorder/ Attention Deficit Hyperactivity Disorder AFS – American Field Service (Intercultural Program) AFT – American Federation of Teachers AHERA – Asbestos Hazard Emergency Response Act AIDS – Auto Immune Deficiency Syndrome AIFS – American Institute for Foreign Study ANB – Average Number Belonging AP Program – Advanced Placement Program ARM – Administrative Rules of Montana ARRA – American Recovery and Reinvestment Act AYP – Adequate Yearly Progress BPE – Board of Public Education CBA – Collective Bargaining Agreement CFR – Code of Federal Regulations CIPA – Children’s Internet Protection Act CLIA – Clinical Laboratory Improvement Act CRT – Criterion-Referenced Test CSPAC – Certification Standards and Practices Advisory Council CST – Child Study Team CPA – Certified Public Accountant DAP – District Action Plan DARE – Drug Abuse Resistance Education ED – Education Department E.D. – Emotionally Disturbed EF – European Field (International Language Program) EOE – Education Opportunity and Equity ESEA – Elementary and Secondary Education Act ESSA – Every Student Succeeds Act FAPE – Free Appropriate Public Education FERPA – Family Educational Rights and Privacy Act FLSA – Fair Labor Standards Act - Governs conditions of employment for certain school employees. FMLA – Family Medical Leave Act FTE – Full-Time Equivalent GASB – Governmental Accounting Standards Board GED – General Education Diploma GPA – Grade Point Average GTB – Guaranteed Tax Base HBV – Hepatitis B Virus HIPAA – Health Insurance Portability and Accountability Act HIV – Human Immunodeficiency Virus HPHP – High-Poverty High-Performing IDEA – Individuals with Disabilities Education Act IEP – Individualized Education Program IISM – Indian Impact Schools of Montana ISBC – Indian School Business Caucus ISLLC – Interstate School Leaders Licensure Consortium JCAHO – Joint Commission of Accreditation of Healthcare Organizations LEA – Local Education Agency LEP – Limited English Proficiency

Rev. 7/2017

39

LRE – Law-Related Education; Least Restrictive Environment MAPS – Measures of Academic Progress MASBO – Montana Association of School Business Officials MCA – Montana Code Annotated MDR – Manifestation Determination Review MEA/MFT – Montana Education Association/Montana Federation of Teachers METNET – Montana's publicly-funded Education Telecommunications Network MHSA – Montana High School Association MOU – Memorandum of Understanding MQEC – Montana Quality Education Coalition MREA – Montana Rural Education Association MSELC – Montana Schools E-Learning Consortium MSGIA – Montana Schools Group Insurance Authority MT-PEC – Montana Public Education Center MTSBA – Montana School Boards Association MTSUIP – Montana Schools Unemployment Insurance Program NAEP – National Assessment of Educational Progress NAFIS – National Association of Federal Impact Schools NCE – Normal Curve Equivalency NCLB – No Child Left Behind Act NCES – National Center for Education Statistics MTCRR – Montana Commissioner’s Rules and Regulations OCHE – Office of Commissioner of Higher Education OPI – Office of Public Instruction OSHA – Occupational Safety and Health Act PAC – Political Action Committee PEP – Pupil Evaluation Program Test PET – Program Evaluation Test PHI – Protected Health Information PI – Pupil Instruction PILT – Payment In Lieu of Taxes PINS – Persons In Need of Supervision PIR – Pupil Instruction Related PLA – Project Labor Agreement Project SAVE – Safe Schools Against Violence in Education PSAT – Pre-Scholastic Aptitude Test RCT – Regents Competency Test SAM – School Administrators of Montana SARA – State Archives & Records Administration SAT – Standardized Assessment Test SASS – System of Accountability of Student Success SEA – State Education Agency SIGI – School Improvement Grant SINI – School in Need of Improvement SRO – School Resource (Police) Officer STD – Sexually Transmitted Disease STW – School-to-Work USC – United States Code WCRRP – Workers Compensation Risk Retention Plan

A GLOSSARY OF EDUCATION TERMS

Rev. 5/2017

40

GENERAL FUND BUDGET TREND DATA

Mills Levied Mills

Elementary High School

Total

2003-04

126.14

61.70

187.84

2004-05

125.44

66.12

191.56

2005-06

120.29

62.00

182.29

2006-07

108.70

60.07

168.77

2007-08

102.85

61.99

164.84

2008-09

100.65

59.71

160.36

2009-10

101.65

59.95

161.60

2010-11

98.02

61.78

159.80

2011-12

101.82

57.91

159.73

2012-13

102.62

56.39

159.01

2013-14

104.02

57.68

161.70

2014-15

115.22

61.11

176.33

2015-16

105.81

55.83

161.64

2016-17

102.24

54.15

156.39

2017-18

107.35

55.90

163.25

250

200

150

100

50

0

Mill Value Year

Elementary High School

Total

2003-04

$84,301

$87,177

$171,478

2004-05

$86,724

$89,567

$176,291

2005-06

$90,504

$93,487

$183,991

$300,000

2006-07

$93,421

$96,358

$189,779

$250,000

2007-08

$97,004

$99,943

$196,947

$200,000

2008-09

$99,093

$101,904

$200,997

$150,000

2009-10

$104,825

$107,592

$212,417

2010-11

$107,392

$110,124

$217,516

2011-12

$111,683

$114,336

$226,019

2012-13

$112,978

$117,886

$230,864

2013-14

$112,792

$115,948

$228,740

2014-15

$110,507

$113,696

$224,203

2015-16

$126,467

$129,195

$255,662

2016-17

$133,258

$136,041

$269,299

2017-18

$137,152

$139,856

$277,008

$100,000 $50,000 $0

41

GENERAL FUND BUDGET TREND DATA Guaranteed Tax Base Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary High School 130,655 112,483 158,812 140,386 169,316 154,272 172,293 158,526 178,156 165,074 183,405 166,433 188,658 169,230 192,788 167,353 200,552 172,873 201,161 175,981 196,531 170,532 195,162 172,032

Enrollment Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary High School 6,783 3,699 7,362 3,623 7,226 3,549 7,234 3,420 7,267 3,311 7,305 3,115 7,385 3,110 7,409 3,078 7,537 3,064 7,466 3,054 7,517 3,032 7,517 3,006

250,000

200,000 150,000

100,000 50,000 0

Elementary

11,100

Total 10,482 10,985 10,775 10,654 10,578 10,420 10,495 10,487 10,601 10,520 10,549 10,523

11,000 10,900 10,800 10,700 10,600 10,500 10,400 10,300 10,200 10,100

Kindergarten increased from .5 ANB to 1.0 ANB

All Budgeted Funds Unreserved Fund Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Elementary 2,454,160 1,773,418 2,426,918 3,182,653 2,911,018 1,644,674 1,476,457 1,429,746 1,892,426 1,832,052 2,131,722 2,349,033

High School 637,453 449,800 602,112 1,185,475 1,136,539 803,677 733,899 784,073 613,501 795,598 1,078,744 2,152,640

Total 3,091,613 2,223,218 3,029,030 4,368,128 4,047,557 2,448,351 2,210,356 2,213,819 2,505,927 2,627,651 3,210,466 4,501,673

3,500,000 3,000,000 2,500,000 2,000,000

1,500,000 1,000,000 500,000 0

Elementary

42

High School

High School

General Fund Budget Category Spending 2016-17 School Year

Category Instruction

Amount

%

$38,902,788

55.81%

Student Services $5,585,183

8.01%

Admin. Dist. **

$2,188,120

3.14%

Admin Build.***

$4,398,319

6.31%

Business

$1,962,112

2.81%

Plant Maintenance

$8,756,487

12.56%

Special Services

$5,004,392

7.18%

Extra Curricular

$1,392,544

2.00%

Transfers

$907,888

1.30%

Bond Payment

$610,912

0.88%

Total:

$69,708,745 100.00%

$1,392,544 $907,888 2.00% 1.30% $610,912 $5,004,392 0.88% 7.18% $8,756,487 12.56%

Student Services Admin. Dist. ** Admin Build.***

Business

$1,962,112 2.81% $4,398,319 6.31%

Instruction

Plant Maintenance $38,902,788 55.81%

$2,188,120 3.14%

Special Services Extra Curricular Transfers Bond Payment

$5,585,183 8.01%

** District Property Insurance, Audit Expense, Electric Expense, Postage, Dues & Fees, Board Travel & Expenses, Labor Consultants *** Building Principal, Clerical and Special Education Administration, & Data for Achievement Salaries & Benefits. Building Administrative supplies & minor equipment. 43

REVENUE - GREAT FALLS PUBLIC SCHOOLS ALL BUDGETED FUNDS

2017-2018 Projected Revenue 30.93%

State

56.60%

County District

12.46%

Revenue

Percentage

State

$50,135,260

56.60%

County

$11,039,014

12.46%

District

$27,396,275

30.93%

Total

$88,570,549

100%

*Senate Bill 261 Impact on Great Falls Public Schools. Senate Bill 261 provided for automatic reductions in revenues distributed to schools based on the total amount of State revenue received. The amounts identified below are specific reductions made to revenue for Great Falls Public Schools. The required basic budget formula amounts, outlined in State law, have been decreased. Great Falls Public Schools has the option of spending less or using reserves to make up the difference in funding from the State. No additional taxes may be levied to replace the reduction in State payments. Great Falls Public Schools

Funding Component Reduction At Risk Special Education Data for Achievement Combined Block Grant Totals

State Reduction Level $ 26,953 $ 217,547 $ 3,109,343 $ 2,800,000 $ 6,153,843

44

Elementary $ 1,467 $ 7,980 $ 153,798 $ 28,294 $ 191,539

High School $ 396 $ 3,191 $ 61,892 $ 13,468 $ 78,947

$ $ $ $ $

Total 1,863 11,171 215,689 41,762 270,486

GENERAL FUND CASH FLOW ANALYSIS Revenue by Month $12,000

The Revenue graph to the left demonstrates the revenues received by the district per month. The district receives no revenue in July. Payments from the State of Montana are equally distributed during the remaining months with the exception of November and May when local tax payments are received.

$10,000 $8,000 $6,000 $4,000 $2,000 $0 July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Expenditures by Month $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

The Expenditure graph to the left demonstrates typical school district expenditures per month. Low expenditures in July represent payroll for the year-round employees and utility costs. In August when school begins teachers and support personnel are added to the expenditures. At the end of the school year, teachers, who are paid on a twelve month schedule, receive their summer checks. Supplies, including textbooks are ordered for the upcoming school year. Also, major construction projects and building improvements are taking place in the summer months because school is not in session.

Revenues and Expenditures by Month $12,000

The information to the left demonstrates how expenses and revenues are not equal each month. The expenses, demonstrated by the blue line are higher than the revenues (green line) in about seven months during the fiscal year. This is the reason schools must maintain a cash reserve.

$10,000 $8,000

$6,000 $4,000 $2,000

$0 July

Aug

Sept

Oct

Nov

Dec

Revenue

Jan

Feb

Mar

Apr

May

June

Expenses

45

GENERAL FUND CASH FLOW ANALYSIS

Cash Flow July Revenue $181 Expenses $809

Aug $2,148 $1,211

Jan Feb Revenue $2,265 $2,142 Expenses $3,300 $3,400

Sept Oct Nov Dec $2,232 $2,186 $10,774 $2,284 $3,337 $3,429 $3,516 $3,958 Mar Apr $2,171 $2,208 $3,988 $3,447

May June $9,305 $4,540 $3,685 $9,177

The information above is typical for General Fund revenues and expenses for each month of a standard school year. The amounts are taken from an actual recent school year and are listed in thousands of dollars to help simplify the analysis. The payment (Revenue) system has evolved over time and continues to change with each legislative session. Expenses are higher in the months of July, September, October, December, January, March, April, and June. Schools receive local taxes twice per year in November and May which are substantially higher than the expenses. Schools are required to maintain a positive cash flow because bills must be paid in a timely manner and payroll must be met. A General Fund reserve amount of 10% is included in State law because the funding to support schools is not consistent month to month. By law, this reserve can only be spent for unforeseeable expenses such as a drastic enrollment increase or an act of nature that impacts facilities. An example of how the reserve could be spent includes moving to a new location due to an earthquake that compromised the safety of the structure of a building. A requirement to access the reserve is a special resolution that must be passed by the school board and approved by the Office of Public Instruction. A common question about cash flow is “Why are expenses high in June? School is not in session”. During the summer, when students are not in the building, major construction projects are occurring and supplies are being ordered so they can be ready when the school year begins and teachers who are paid on a 12 month contract receive their summer checks.

46

2017 MONTANA LEGISLATIVE SESSION SUMMARY Following is a summary of bills that impact education in the areas of Finance, Election, Transportation, Facilities Funding, as well as other related education bills.

BILL NUMBER

ANB = Average Number Belonging (Student Count) Early Edge = Preschool Program FY = Fiscal Year (July 1 - June 30) GTB = Guaranteed Tax Base HB = House Bill OPI = Office of Public Instruction SB = Senate Bill TIF = Tax Increment Finance TRS = Teachers Retirement System

DESCRIPTION FINANCE

HB2 General Appropriations Act

Section E contains the OPI Budget and Early Edge. Does not include an inflationary increase for special education allowable costs. Note: see also HB 647, which implements amendments in section E of this bill. Effective July 1, 2017.

HB30 Remove voted Directs revenue from voted mills that are approved after the adoption of a tax increment levies approved after financing district (TIF) to the levying district instead of the TIF. Exclusion of the university creation of TIF from tax 6-mill revenue is retained. Effective on passage and approval. increment provision HB119 Revise quality educator loan assistance program

Expands the purpose of the quality educator loan assistance program, makes changes to the critical quality educator shortages criteria, and changes the distribution of funds to eligible quality educators for loan repayment. Quality educators meeting the criteria of the loan program would receive $3,000 after the first year, $4,000 after the second year, and $5,000 after the third completed year of teaching in the same impacted school or another impacted school within the same school district. Effective July 1, 2017.

HB191 Provide inflationary increase for ANB funding

This bill includes inflationary adjustments to the basic and per-ANB entitlements and Quality Educator, Indian Education for All, Achievement Gap and Data for Achievement components of the general fund funding formula. The inflationary adjustments are 0.5% in FY2018 and 1.87% in FY2019. Effective July 1, 2017 (for FY2018 and FY2019 budgets).

HB390 Generally revise school funding laws

Requires local property taxes collected for the ANB that did not materialize subsequent to setting a budget based on an anticipated enrollment would be returned to the local tax payers in the ensuring year via fund balance re-appropriated. Also directs $1.0 million each year of the biennium from the school facility and technology state special revenue account to the Department of Commerce for providing funds for schools to use as a match for e-rate broadband matching funds for the ensuing year. This replaces the Timber Technology distribution currently in place. Effective July 1, 2017. E-rate = The E-rate program is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC). Specifically, USAC is responsible for processing the applications for support, confirming eligibility, and reimbursing service providers and eligible schools and libraries for the discounted services. The program helps schools and libraries to obtain affordable broadband.

HB647 Generally revise education funding, implement general appropriations bill

Implements section E of HB 2 general appropriations bill:  Eliminates the natural resources development K-12 funding  payment;  Eliminates school district general fund block grants and increases the guaranteed tax base aid (GTB) over time;  Revises excess oil and gas production taxes to school districts to be distributed to the state special revenue guarantee account;  Eliminates inflationary increases for county school transportation block grants;  Increases funding for K-12 career and technical education;  Creates a natural resources development K-12 facilities payment;  Creates a coal-fired generating unit mitigation block grant;  Transfers funds for higher education. Includes provisions for coordination with SB307. Effective July 1, 2017. 47

BILL NUMBER

DESCRIPTION FACILITY FUNDING

SB124 Extend school district bond term

Allows school district bonds to be issued for 30 years instead of the current 20-year limit. Amended to place certain conditions for a 30-year issuance, such as the interest rate for a 30year issue must be less than or equal to the rate on an issue with a 20-year term. Effective on passage and approval.

SB260 Create school facilities sub-trust within coal tax trust fund

Creates a new school facilities fund within the coal severance tax trust fund and allocates 75% of coal severance taxes deposited in the coal severance tax bond fund in excess of the amount required for principal and interest payment to the school facilities fund. Interest earnings from the school facilities fund are deposited into the school facilities special revenue fund until the school facilities fund reaches $200 million. Effective July 1, 2017.

SB307 Revise K-12 school funding laws to address facilities

Revises the purposes and uses of the state special revenue school facility and technology account, creates a school facility maintenance amount, allows up to a 10-mill permissive local levy for school maintenance and improvements, phases out the quality school grant program, and creates a state payment to the district building reserve fund. Requires tracking in subfunds for the various purposes and funding in the building reserve fund. Requires trustees to adopt a resolution and notice of anticipated increases in permissive levies in the Transportation, Bus Depreciation, Tuition, Adult Education and Building Reserve Funds by June 1 for FY2018 budgets and by March 31 in subsequent years. Amended to prioritize spending to address the items on the 2008 School Facilities Inventory reports. Effective July 1, 2017.

OTHER EDUCATION RELATED HB323 Authorize emergency use of opioid antagonist in a school setting

Allows a school to maintain a stock supply of an opioid antagonist to be used in the event of an actual or perceived opioid overdose emergency. Effective July 1, 2017

HB370 Revise laws regarding the recording of public meetings

A person may not be excluded from any open meeting under this part and may not be prohibited from photographing, televising, transmitting images or audio by electronic or digital means, or recording open meetings. Effective October 1, 2017.

HB381 Require school districts to address suicide prevention and response

Requires school districts to establish policies, procedures, or plans related to suicide prevention and response. Provides that no cause of action may be brought for any loss or damage caused by any act or omission resulting from the implementation of this bill. Effective July 1, 2017.

HJ1 Legislative interim study of funding for education programs for special needs students

Requests an interim study of the needs and costs of programs to provide for students with special needs and requires the final results of the study be reported to the 66 th Legislature.

SB103 Clarify education laws related to minimum aggregate hours and proficiency

Clarifies that the required minimum aggregate hours provision does not apply to pupils demonstrating proficiency in content ordinarily cover by regular instruction. Effective July 1, 2017.

SB121 Provide that volunteer positions are not reportable to TRS

Stipulates that bona fide volunteer positions are not reportable to TRS if certain assumptions are met. Effective July 1, 2017.

48

BILL NUMBER

DESCRIPTION

SB5 Revise INTERCAP loan program

Authorizes school districts to borrow funds for additional eligible projects through the Board of Investments and increases the debt repayment term from revenue pledged from a school district’s building reserve fund levy from 5 years to 15 years. Effective on passage and approval.

SB115 Revising stipends Provides for an annual stipend for nationally board certified teachers meeting specified criteria. In for national board addition, the state will make payments to the teacher’s school ranging from $500 to $2,000, certified teachers depending on the eligibility of the school. Effective July 1, 2017. SB261 Generally revise state fiscal laws

Establishes a budget stabilization reserve fund to be used to mitigate budget reductions when there is a revenue shortfall, pay down debt service on bonds for capital projects, make decisions about the issuance of bonds authorized by the legislature or allow the funds to remain in the account. Establishes general fund revenue shortfall trigger that result in reductions in appropriations, including those related to school funding. Effective July 1, 2017.

ELECTION HB83 Generally revise election laws

Election clean-up bill. Items affecting school districts:  Notice of close or regular registration is the responsibility of the county, not the school district.  Election notice must include where and how late registrants may obtain a ballot on election day.  Requires notice of election by acclamation (replaces “may” with “shall”). Effective on passage and approval.

HB103 Generally revise election laws administrative cleanup

Requires that before each election, all election judges must be instructed by the election administrator on current procedures as prescribed by the Secretary of State. Requires a notice indicating the method that will be used for counting absentee ballots and the place and time that the absentee ballots will be counted on election day. Governor’s amendment: includes provisions that will enable counties to purchase new voting equipment for people with disabilities. Effective January 1, 2018.

HB287 Revise absentee ballot list confirmation laws

Provides that address confirmation is not required for an elector on the absentee ballot list for subsequent elections unless the elector has changed the elector's address. Effective October 1, 2017.

TRANSPORTATION HB355 Revise laws related to school district transportation

Adds district-owned or privately owned vehicles designed to carry ten or fewer passengers that meet certain national highway traffic safety administration ratings to be included in the definition of “school bus” for determining school district transportation budgets for transporting pupils to and from school. The mileage reimbursement rate for the vehicles is set in the bill at $0.50 per mile. Effective July 1, 2017.

SB227 Revise state school transportation

Requires the state transportation reimbursement to be calculated based on minimum aggregate hours as opposed to actual days transported. Effective July 1, 2017.

SB241 Generally revise commercial driver’s

Allows the Department of Justice’s Motor Vehicle Division (MVD) to permit third party Commercial Driver License (CDL) testing. 49

SB 261 and BUDGET REDUCTIONS RELATED TO EDUCATION FY 2017 REVENUE TRIGGERS prepared for the Education Interim Committee, June 2017, by Pad McCracken, LSD Research Analyst

FY 2017 GF Revenue as of 8/15/2017

The budget cuts for the triggers are cumulative

If GF revenue is less than 2.217 B, SB 261 voids the statutory appropriation for both FY 18 and FY 19 to the Library Commission that is distributed to public libraries around the state. This is a cut of about $0.4 M/year. $2.216 B

Level 1 No education related cuts

$2.204 B

If GF revenue is less than $2.204 B (Level 2), almost all HB 2 GF appropriations will be reduced by 0.5% for BOTH FY 18 and FY 19, including the following (some K-12 Local Education Activities are exempted):  OPI State Level Activities including  Audiological Services; NBCT stipends; MT Digital Academy  K-12 Local Education Activities including  Advancing Ag Ed  In-State Treatment  Secondary Vo-ed (CTE)  Adult Basic Ed  Gifted and Talented  At-Risk Student Payment*  Special Ed*  School Food  Additionally these “across-the-board cuts” will reduce all GF line item appropriations to BPE, MSDB, MAC, MSL, MHS, and MUS/OCHE

Level 2

$2.192 B

If GF revenue is less than $2.192 B (Level 3), HB 2 appropriations will be modified for BOTH FY 18 and FY 19:  Montana State Library (reduced by $0.67 million/ year)  Montana Historical Society (reduced by $0.61 million/ year)

Level 3

$2.180 B

Level 4

If GF revenue is less than $2.180 B (Level 4), the following HB 2 appropriations will be modified for BOTH FY 18 and FY 19:  Secondary Vo-ed (reduced by $0.5 M/year to $1/5 M/ year)  Data-for achievement payment* is suspended (about $3 M/year)  Combined fund block grants (roughly halved; $2.8 M/ year)  Natural resource development K-12 school facilities payment (delayed until 2020; would’ve provided $5.8 M in state major maintenance aid in FY19) Level 4 also voids the FY 18 appropriation for the state pay plan (EXEC, JUD, LEG, and MUS) and reduces the appropriation in FY 19. *School district general fund components

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INFLATIONARY INCREASES

The formula for calculating basic entitlement changed in the 2013 legislative session. For FY 2014-15, elementary districts without an accredited 7th-8th grade program received $40,000 for the first 250 students, plus an additional $2,000 for every 25 ANB over 250. A school district with an accredited 7th-8th grade program received $40,000 for the K-6 elementary program plus an additional $2,000 for every 25 ANB over 250 and $80,000 for the 7th-8th grade program, plus $4,000 for every 45 ANB over 450. High school districts received $290,000 plus $12,000 for every additional 80 ANB over 800.

Payment eliminated 2017-18 School Year

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GENERAL FUND BUDGET - COMPONENT TREND DATA Funding Component Data For Achievement Quality Educator Indian Ed for All At Risk Amer. Indian Achievement Non Levy Revenue Guaranteed Tax Base (GTB) Natural Resource Dev. (NRD) Local Base Property Tax Special Education Direct State Aid (DSA) Totals

$ $ $ $ $ $ $ $ $ $ $ $

2012-2013 2,495,255 214,404 381,693 328,000 2,538,611 11,441,943 7,221,577 2,085,772 25,863,059 52,570,314

$ $ $ $ $ $ $ $ $ $ $ $

2013-2014 104,950 2,503,855 214,098 349,663 264,000 2,369,526 11,930,578 7,392,730 2,088,223 26,411,743 53,629,366

$ $ $ $ $ $ $ $ $ $ $ $

2014-2015 157,500 2,467,798 214,200 343,736 284,400 2,884,408 12,032,263 7,044,329 2,131,500 26,972,728 54,532,862

$ $ $ $ $ $ $ $ $ $ $ $

2015-2016 211,960 2,563,991 221,287 391,801 303,810 2,690,235 11,980,648 313,649 7,933,054 2,136,549 27,938,086 56,685,070

$ $ $ $ $ $ $ $ $ $ $ $

2016-2017 214,187 2,604,313 223,551 384,610 314,963 2,683,041 11,634,095 512,064 8,331,184 2,100,996 28,274,406 57,277,410

2017-2018 $ $ 2,580,465 $ 225,177 $ 370,714 $ 324,030 $ $ 13,404,427 $ $ 12,661,026 $ 2,109,634 $ 28,462,080 $ 60,137,553

$30,000,000 $27,000,000

Direct State Aid

$24,000,000

$9,000,000 to $30,000,000

$21,000,000 $18,000,000

$15,000,000

Guaranteed Tax Base

$12,000,000

$9,000,000 2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

$14,000,000

$12,000,000

Local Base Property Tax

$10,000,000 $8,000,000

$1,000,000 to $14,000,000

$6,000,000

Quality Educator

$4,000,000

Special Education

$2,000,000

Non Levy Revenue

$2012-2013

$0 to $1,000,000

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $-

At Risk Amer. Indian Achievement Indian Ed for All Data for Achievement 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

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Natural Resource Dev.

SENATE BILL 307 Senate Bill 307 provides a system for trustees to address facility issues by allowing Boards to permissively levy up to 10 mills with a cap of $15,000 per district and $100/student. The Great Falls School District has the potential to levy approximately $1,030,000 annually. This is calculated by the following formula. ($100/student x 10,000 students = $1,000,000 plus $15,000 per district). To permissively levy the mills, the District is required to publish an ad in the general paper of circulation, by March 31st, estimating the increases/decreases in revenues and mills of all permissive levied funds. The amounts in the attached resolution are estimates only. This is because there are a variety of factors which impact the actual mills levied during the next budget year. Many of these items are not determined until the end of the fiscal year in late June. The bill also made the school safety legislation passed in previous sessions permanent. The new revenue will be accounted for in the Building Reserve Fun as a sub fund. The district must also identify and list school facility maintenance projects anticipated as part of the resolution. The money does not have to be spent in the fiscal year levied and must address an item identified in the 2008 Facilities Condition Inventory (FCI). Below is a copy of the resolution posted in the Great Falls Tribune in the spring of 2017.

Resolution of Intent to Impose an Increase in Levies As an important component of our transparent budgeting process, the Great Falls Public Schools Board of Trustees is authorized by law to impose levies to support its budget. The Great Falls Public School Board of Trustees estimates the following increases/decreases in revenues and mills for the funds noted below for the next school fiscal year beginning July 1, 2017, using certified taxable valuations from the current school fiscal year as provided to the district:

Fund Adult Education Bus Depreciation Transportation Tuition Building Reserve Total

Estimated Change in Revenues Elementary ….No Change High School….No Change

Estimated Change in Mills* Elementary…No Change High School….No Change

Estimated Impact, Home of $100,000* Elementary….None High School….None

Estimated Impact, Home of $200,000* Elementary….None High School….None

*Great Falls Public Schools does not utilize this fund as the district does not own buses. Elementary….$154,186 High School….$47,530 Elementary….$74,455 High School….$36,037 Elementary….$131,310 High School….$134,058 Elementary….$359,951 High School….$217,625

Elementary….1.17 Mills High School….0.35 Mills Elementary….0.57 Mills High School….0.27 Mills Elementary….1.00 Mills High School….1.00 Mills Elementary….2.74 Mills High School….1.62 Mills

Elementary….$1.59 High School….$.48 Elementary….$.77 High School….$.36 Elementary…$1.36 High School….$1.33 Elementary….$3.72 High School….$2.17

Elementary….$3.17 High School….$0.96 Elementary….$1.53 High School….$.73 Elementary….$2.72 High School….$2.66 Elementary….$7.42 High School….$4.35

*impacts above are based on current certified taxable valuations from the current school fiscal year. These taxable valuations may change in August. The items listed below are identified in the 2008 K-12 Public School Facility Condition Assessment Survey conducted by the State of Montana for Great Falls Public Schools. Regarding the increase in the building reserve levy referenced above, the following are school facility maintenance projects anticipated to be completed at this time: Great Falls High School exterior windows Skyline floor and wall finishes

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LEGISLATORS DECIDED TO RAISE LOCAL SCHOOL TAXES. THEY JUST DIDN’T TALK ABOUT IT. By MATT HOFFMAN [email protected]

Matt Hoffman Apr 1, 2017

A legislative committee restored millions of dollars in funding for Montana schools on Tuesday, but only did so by draining a different pool of school payments — potentially triggering a significant non-voted tax raise for school districts across the state that legislators didn't discuss. The Senate Finance and Claims committee iced School District Block Grants for the next two years, pulling $108 million. The committee backfilled funding through a tax-base equalization payment increase, but it will take years to catch up; over the next two, schools will lose out on $40 million from the grant program. “K through 12 will actually have less dollars than prior to our work today," said Sen. Llew Jones, a Conrad Republican who proposed the amendment axing the grants during the committee's Tuesday hearing. But the committee didn't broach the topic of domino-effect local tax increases. In Billings, School District 2 got about $6 million from the grant program this school year; back-filled funding is only slated to replace about half of that next year. For now, it would be up to local taxpayers to make up the difference, and neither they nor schools get a say. The cuts don't decrease the state-mandated budget floor for schools, but they do decrease the money available from the state to pay for the minimum budget; the state funding formula automatically raises non-voted local school taxes to make up the difference.

"I feel like we, as public school districts, have no control," SD2 superintendent Terry Bouck said Friday. "It's very difficult when we have to worry about our legislators making cuts to the money they provide and expecting local citizens to pick it up." Superintendent of Public Instruction Elsie Arntzen cheered the budget changes in a press release Tuesday. "As a former legislator, I know that the budget process is fluid," she said in the statement. "I want to thank the Senate Committee for agreeing to put Montana students first today and recognizing the state's responsibility to equitably fund schools." The release doesn't mention the grant program cuts, backfill funding or potential tax raises. Arntzen, a Republican, has alternately praised and criticized legislative funding proposals but largely hasn't weighed in on education bills. Other restored payments affect a patchwork of areas:  Funding for the Montana Digital Academy was effectively restored to last biennium's levels after the online class program faced major cuts in earlier proposals.  $1.2 million for two years was added to special education funding.  $1 million was added for career and technical education over two years; that's still lower than the additional $1 million per year that was added by an SD2-pushed bill that passed in 2015. That funding was only for the current and previous school year.  The Data for Achievement payment, which is allocated to help schools cover the cost of required testing and data collection, was restored at $6.3 million.

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LEGISLATORS DECIDED TO RAISE LOCAL SCHOOL TAXES. THEY JUST DIDN’T TALK ABOUT IT. CONTINUED  

 

About $220,000 was added to general BASE aid, which pays for school's day-to-day operating expenses. $2.4 million for next school year and $4.1 million the year after was added to help compensate for the elimination of the Natural Resources Development payment, filling a negative fund balance. Elimination of the payment costs schools about $10 million over two years. That money goes into the state general fund instead. $5.8 million was added for school facility support; companion legislation introduces a funding program that lets schools automatically raise non-voted local tax money for facilities and get some matching state money. $3.4 million was added to mitigate tax-based cuts of school districts that depend on coal plants. The amendment was sponsored by Sen. Duane Ankney, who represents Colstrip, where a coal plant is likely to shut down over the next several years. The money would be narrowly distributed and not affect most schools.

In total, about $20 million was added to accounts that all schools benefit from. Local shift The backfilled payments would replace the grant money by the 2020-21 school year, Jones said. The changes will hit some schools harder than others; Scobey schools get a large grant payment — almost $400,000 for this school year — because they have a large proportion of state land in their tax base. That hole is equivalent to about 54 mills before accounting for the extra tax-base equalization payments, Scobey superintendent Dan Schmidt said. "For us, we're gonna feel it a lot," he said. The district is waiting until the budget process wraps up, and if significant tax changes are likely, it will probably send out a letter explaining the differences to taxpayers. In Lockwood, where the K-8 school district gets about $470,000 in grant money, officials are worried about the impact a non-voted increase could have on other tax decisions. "It makes it more difficult to pass local levies," Lockwood superintendent Tobin Novasio said. The district is offering a levy this May. "It's frustrating," said Novasio, who's also the president-elect for the Montana Association of School Superintendents. "I understand that they've got the budget issues in Helena, but it kind of balances it on the backs of the schools." Assuming payments catch up in the 2020-21 school year, the changes actually would help create of more equitable funding system in Montana. The block grant payments use a 2001 funding formula that can reinforce tax base differences; the replacement payments would further level the playing field for schools with weak tax bases. The current tax-equalization payments only partially make up the gap for schools with weak tax bases.

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AUDIT MANAGEMENT DISCUSSION & ANALYSIS 2015 GREAT FALLS SCHOOL DISTRICT 1 & A CASCADE COUNTY GREAT FALLS, MT MANAGEMENT’S DISCUSSION AND ANALYSIS Year Ended June 30, 2015 (Unaudited) The discussion and analysis of Great Falls School District 1 & A, Cascade County, Great Falls, Montana’s financial performance provides an overall review of the School District’s financial activities for the fiscal year ended June 30, 2016. The intent of this discussion and analysis is to look at the School District’s financial performance as a whole; readers should also review the basic financial statements and the notes to the basic financial statements to enhance their understanding of the School District’s financial performance. FINANCIAL HIGHLIGHTS Key financial highlights for 2016 are as follows:  







 



Total current assets, which include cash, investments, receivables, inventories and prepaid expenses, decreased by $1,684,495. Long term assets decreased by $351,362 due to not requesting a general fund levy for operational support which provided for the increased use of investments to fund general operational costs of the district. In total, net position increased $62,398, from a negative $40,110,647 after restatement, to a negative $40,048,249, which represents a 0.16 percent increase. In fiscal year 2015 net position decreased $75,899,525 from $35,788,878, after restatement to a negative $40,110,647, which represented a 212.08 percent decrease, due to the requirements of implementing GASB 68 and GASB 71, as the District was required to report pension liabilities for TRS and PERS. Reporting these liabilities had a negative impact of $74,792,276 to the District’s net position in fiscal year 2015. Total revenues for the district increased by $2,754,816 which can be attributed to increases in direct state aid and tax collections. These increases were offset by decreases in other state revenue and interest. General revenues accounted for $82,705,188 in revenue or 83.54 percent of all revenues. Program specific revenues, in the form of charges for services and operating grants and contributions, accounted for $16,294,737 or 16.46 percent of total revenues of $98,999,925. When compared to fiscal year 2015, general revenues increased by $2,354,399 while the program specific revenues increased by $400,417, for a net increase in total revenues of $2,754,816. From 2015 to 2016, Instructional Services expenditures increased by $1,857,729 which is a 3.07 percent increase. The District had $98,976,422 in expenses. $16,294,737 of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes, state and county equalization and federal impact aid) of $82,705,188 were enough to provide for these programs so reserves were not used to fund the difference. Among the major funds, the general fund had $69,521,219 in revenues, $68,695,197 in expenditures, and $781,438 of transfers out, leading to an increase in fund balance of $44,764. 56

INVESTMENT HISTORY Great Falls Public Schools Investments

2016 2017 930,000 $ 930,000 65,000 $ 65,000 350,000 $ 350,000 350,000 $ 350,000 225,000 $ 225,000 7,725,000 $ 7,725,000 260,000 $ 260,000 1,069,000 $ 1,069,000 2,364,000 $ 2,114,000 $ 125,000 $ 125,000 450,000 $ 450,000 340,000 $ 340,000 350,000 $ 350,000 1,000,000 $ 1,000,000 63,000 $ 63,000 15,666,000 $ 15,416,000 Total $ *Accounts that must maintain current balance or do not apply to General Operations >Budgeted Funds >Building >Building Reserve Compensated Absences Drivers Education >Flex Impact Aid Indirect Costs Medicaid Rate Stabilization Tuition Transfer *Endowment *Revenue Enhancement *RIDE *Student Activity *Trust

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2015 930,000 65,000 350,000 350,000 225,000 8,100,000 400,000 1,069,000 2,714,000 125,000 450,000 340,000 350,000 1,000,000 63,000 16,531,000

2017 Drawdown

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Recent Drawdown History Account Balance

June 2011 November 2011 December 2011 October 2012 February 2013 July 2013 February 2014 June 2014 September 2014 December 2014 May 2015 June 2015 December 2015 April 2016 June 2016 April 2017 Total

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Fiscal Yr Drawdown Amount 2011-12 $ 2012-13 $ 2013-14 $ 2014-15 $ 2015-16 $ 2016-17 $

21,050,000 20,650,000 20,050,000 19,750,000 19,550,000 19,140,000 18,490,000 18,150,000 17,808,000 17,558,000 17,381,000 16,881,000 16,531,000 16,216,000 15,666,000 15,416,000

Drawdown Amount

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

400,000 600,000 300,000 200,000 410,000 650,000 340,000 342,000 250,000 177,000 500,000 350,000 315,000 550,000 250,000 5,634,000

1,000,000 500,000 1,400,000 1,269,000 1,215,000 250,000

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250,000

250,000

NON BUDGETED FUNDS A Non Budgeted Fund does not require Board approval because there are no District tax revenues in these funds; therefore, no formal adoption of a budget is needed in order to spend the existing fund balance. Expenditures are limited to cash available in the fund (20-9-210 MCA). The exception is Title program federal grants and state grant applications accounted for in Fund 15. They require a budget. Funds highlighted are accounted for using the Miscellaneous Programs Fund. Any fund listed with an X as a first number indicates that it is located in both the elementary and high school budget. If the beginning digit is the number 1, it is in the elementary budget. If the first digit is the number 2, it is found only in the high school budget.

Individual Fund Descriptions FUND

112 Food Service - Authorized by Section 20-10-201, MCA, for the purpose of accounting for school food service operations, including state and federal reimbursements. End of year fund balance is limited to the equivalent of 3 months of expenditures (federal government). Healthy Hunger Free Kids Act sets program and meal price requirements. June 30 Balance: $997,554

X15 Miscellaneous Programs - Authorized by Section 20-9-507, MCA, for the purpose of accounting for local, state or federal grants and reimbursements. Donations that allow the expenditure of both principal and interest for support of district programs are deposited in this fund. Allowable expenditures are determined by the grant award or agreement. Indirect costs may be recovered at the approved Indirect Cost Rate. June 30 Balance: Elem -$860,819 HS -$18,077

218 Traffic Education - Authorized by Section 20-7-507 and 20-9-510, MCA, for the purpose of accounting for traffic education activities. Revenue is generated from fees from students and a State Drivers Ed Reimbursement. June 30 Balance: -$85,731 Invested: $350,000

X20 Lease Rental Agreement - Authorized by Section 20-9-509, MCA, for the purpose of accounting for revenues and expenditures related to lease or rental of school property. End of year fund balance is limited to $10,000 per district. Excess must be transferred to the General Fund. June 30 Balance: Elem $7,179 HS $9,954

X21 Compensated Absences - Authorized by Section 20-9-512, MCA, for the purpose of financing the accumulated sick leave and vacation pay that a non-teaching or administrative school district employee is entitled to upon termination of employment. Funded using budgeted General Fund transfers. Funds in excess of limit must be returned to General Fund. Limited to 30% of the sick and vacation leave payout for non-teaching and administrative employees. Must have budget authority in the General Fund for a transfer. June 30 Balance: Elem $439,039 HS $211,534 Invested: $350,000

122 Tuition Transfer - This fund was created with existing funds from a closed Tuition fund. Expenditures from this fund include tuition payments to Yellowstone County and the Cascade Youth Detention Center. June 30 Balance: $32,051 Invested: $125,000

123 RIDE – District staff worked with a private company, Sopris West, to create education plans and activities for special needs students. Sopris West purchased the rights to this program from the district. Funds were placed in this account with the interest generated to be allocated to teacher grants to improve instruction. June 30 Balance: $79,512 Invested: $350,000

X24 Internal Local – This fund is used to account for miscellaneous activities operated on a cost-reimbursement basis within the district. June 30 Balance: Elem $144,565 HS $792,891 58

NON BUDGETED FUNDS CONTINUED 225 Indirect Cost – Fund to deposit indirect costs associated with federal grants. The indirect cost rate is a means of determining the percentage of allowable general administrative expenses that each Federal grant should bear. The indirect cost rate is the ratio of total indirect costs to total direct and unallowable costs, exclusive of any extraordinary or distorting expenditures such as capital outlay and debt service. An indirect cost rate allows a portion of the total grant to reimburse the school district for indirect costs such as accounting, payroll, personnel, etc. June 30 Balance: $312 Invested: $260,000

X26 Impact Aid - Authorized by Section 20-9-514, MCA for the purpose of the receipt and expenditure of Public Law 81-874 Impact Aid. Districts must submit an annual application in January for the ensuing fiscal year. Allocations are based on students who live on non-taxable land. June 30 Balance: Elem $1,142,024 HS $318,834 Invested: $7,725,000

231 Specific Purpose – This fund is used to manage and financially tract grants which are not State or Federal. Allowable expenditures are determined by the grant award or agreement. Depending on the requirements of the grant, fund balance can carry over from year to year. June 30 Balance: $62,163

151 Medicaid – This fund was established to manage the Medicaid Reimbursements the district receives for health-related services provided as a part of an Individual Education Program (IEP). It is intended to assist with the costs associated with the administration of school based health services as well as outreach activities. June 30 Balance: $186,501 Invested: $1,069,000

255 Swimming Pool – This fund manages the operational costs associated with running the district swimming pool. Revenues include fees paid for use of the pool and swimming lessons. June 30 Balance: $48,335

256 Revenue Enhancement – Revenue for this fund is generated from advertising in the schools. It is mainly used to support athletic programs in the district. June 30 Balance: $83,975 Invested: $340,000

157 Rate Stabilization Reserve (RSR) – This health insurance related fund was created from rebates from health insurance companies for unused premiums. It assisted the district in negotiating lower health insurance premiums. The district premium for employees who waived the district insurance was placed in this fund until 2014 when the Office of Public Instruction determined that this violated fund transfer rules. Funds in this account have been used for employee wellness and a $55 per month insurance premium offset. June 30 Balance: $16,010 Invested: $2,114,000

259 State Vocational Education (VOED) – This fund is used to account for revenues and expenses associated with the State Vocational Education Program . June 30 Balance: $87,896

X60 Building - Authorized by Section 20-9-508, MCA. It is used primarily to account for the proceeds of bonds sold for the purposes provided in Section 20-9-403, MCA. The fund is also used to account for insurance proceeds for damaged property as provided in 20-6-608, MCA, or the sale or rental of property as provided by 20-6-604 and 607, MCA. June 30 Balance: Elem $33,272,332 HS $23,357,008 Invested: $930,000

173 Internal Service - Authorized by Section 10-10-314, MCA, the Internal Service Fund is used to account for printing services provided to schools or other departments of the district on a costreimbursement basis. To open this fund, it must be approved by the Office of Public Instruction. June 30 Balance: $290,695

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NON BUDGETED FUNDS CONTINUED 281 Endowment - Authorized by Section 20-9-604, MCA, to account for trusts and endowments that only allow use of interest earnings, and not principal, to support the district’s programs. In the OPI budgeting manual, this is recommended to be coded as 45. June 30 Balance: $5,831 Investment: $450,000

182 Interlocal Cooperative - Authorized by Sections 20-7-457, 20-3-363, 20-9-511, 20-7801, and 20-9-701, MCA, for the purpose of accounting for revenues and expenditures related to an interlocal agreement between two or more school districts or other local governments. Expenditures are limited to the amount of cash on hand. Expenditures must be mutually agreed upon in an interlocal cooperative agreement or multi-district agreement. Trustees may transfer money from any budgeted fund to the Interlocal Agreement Fund. Transfers are not allowed from the Retirement Fund or Debt Service Fund. General Fund transfers are limited to the amount of Direct State Aid (DSA). Transfers made from a fund with a permissive levy may not be replenished in a subsequent year. June 30 Balance: $1,052,529

X84 Student Extracurricular - Authorized by Section 20-9-504, MCA for the purpose of receiving and expending money collected for pupil extracurricular functions. Examples include athletics, clubs, classes, student government organizations and student publications. Funds may be maintained in a separate bank account outside control of the county treasurer. June 30 Balance: $284,209 Invested: $1,000,000

285 Endowment - Authorized by Section 20-9-604, MCA, to account for trusts and endowments that allow use of interest earnings, and principal, to support the district’s programs. In the OPI budgeting manual, this is recommended to be coded as 45. June 30 Balance: $288 Invested: $63,000

186 Payroll Clearing Fund - An agency fund authorized by Section 20-9-220, MCA, for the purpose of reducing bookkeeping requirements associated with the issuing of warrants. Rather than issuing several warrants on a fund by fund basis to a single payee and maintaining a separate list of unpaid outstanding warrants for each fund, a school district may issue one warrant from the Payroll Fund to a single payee and maintain only one list of unpaid outstanding warrants. June 30 Balance: $614,569

187 Claims Clearing Fund - An agency fund authorized by Section 20-9-220, MCA, for the purpose of reducing bookkeeping requirements associated with the issuing of warrants. Rather than issuing several warrants on a fund by fund basis to a single payee and maintaining a separate list of unpaid outstanding warrants for each fund, a school district may issue one warrant from the Claims Fund to a single payee and maintain only one list of unpaid outstanding warrants. June 30 Balance: $1,750,291

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GASB 54 JUNE 30, 2016 Great Falls Public Schools ENDING FUND BALANCES – June 30, 2016 Each fiscal year, the district is required to complete a financial breakdown of ending fund balances in all funds. In 2011, the Governmental Accounting Standards Board (GASB 54) required that ending fund balances must be categorized into more specific, easier to understand fund balances rather than just being classified as an ending fund balance amount. It also delineates the extent to which a government is bound to observe constraints imposed upon the use of the resources. Below is a category description and listing of fund balances as of June 30, 2016.

Non-spendable - $1,481,350 Resources not in a spendable form or Are legally required to be maintained intact. Interlocal Prepaid Dues & Fees $529,899 School Food Inventory $144,507 Prepaid Insurance Endowment $467,903 Warehouse Inventory $134,727 Tech Warehouse

$140,000 $42,723 $21,591

Restricted - $20,237,609 Constraint EXTERNALLY imposed by third party (grantor, contributor, etc.) State Constitution or by enabling legislation. Legally enforceable by external parties. Impact Aid Retirement Transportation Technology Fund Student Activities School Food Service

$9,228,193 Building Fund $1,672,797 Compensated Absence $1,546,434 Inter-local Agreement $1,399,483 Traffic Education $1,282,059 Adult Education $ 794,331 Building Reserve This number includes inventory.

$1,156,276 $736,899 $803,901 $458,400 $255,655 $248,894

Flexibility Fund Print Center Private Purpose Trust Rental Fund Debt Service

$304,044 $264,222 $65,801 $19,104 $1,116

Committed - $6,891,079 Constraint INTERNALLY imposed by local government’s highest level of authority (Council, Board, etc.) of formal action using the highest level of decision making authority. General Fund – reserves

$6,891,079

Assigned - $7,468,386 Constraint is an INTERNAL expression of intent by governing body or authorized official. Rate Stabilization Reserve Medicaid Internal Local Indirect Costs Skyline Ride Athletics Revenue Enhancement

$2,593,694 $1,486,627 $935,589 $442,057 $432,163 $413,718

Federal/State Grants General Fund (Encumbrances) Tuition Transfers Vo-Ed Specific Purpose Swimming Pool

$534,070 $233,001 $158,375 $ 91,192 $74,164 $73,736

Unassigned - $0 No constraints. General Fund – cash re-appropriated

$0

The ending fund balance information is a combination of both the audited financial statements and Trustees Financial Summary (TFS). The TFS is the final closeout of a fiscal year. During the audit process, combinations of funds are reported together which may lead to a small discrepancies between the two reports. (The county superintendents annual report of balances listed in the newspaper may not reflect audit adjustments depending on the nature of the adjustment.) 1/20/16

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IMPACT AID The Impact Aid Program, signed into law by President Harry Truman in 1950, is the nation’s oldest K-12 Federal education program. Nationwide, approximately 1,300 school districts enroll more than 11 million students who benefit from Impact Aid funding. Impact Aid, originally PL. 81-874, was incorporated in 1994 into the Elementary and Secondary Education Act. It’s now Title VII of the Every Student Succeeds Act. Funding for the program is approved annually by Congress. It is designed to assist schools, like Great Falls, that have experienced increased expenditures due to the enrollment of federally connected children on military bases, low-rent housing properties, or other Federal properties and, to a lesser extent, for children who have parents in the uniformed services or employed on eligible Federal properties who do not live on Federal property. Nearly 97 percent of the $864 million appropriated for FY 1999 is targeted for payment to school districts based on an annual count of federally connected school children. Impact Aid funding is direct, locally controlled and flexible with the exception of funds which are required to be designated to Special Education. All Impact Aid funds appropriated annually by Congress are disbursed directly to school districts – bypassing state involvement and can be used for any general fund purpose. All decisions on how Impact Aid funds are spent are made locally by elected school boards. Each school district must submit an Impact Aid application annually to the U.S. Department of Education. The Department reviews the applications and processes payments based on Congressional appropriations each fiscal year (October 1 - September 30). The Department allocates funding in multiple installments until all available funds are distributed. School district applications are audited, on average, once every five years. The Impact Aid Program is the only K-12, Federal education program that is not forward funded. The $67.5 million sequester of Impact Aid in FY 2013 had a devastating impact on federally impacted schools. While a near-full restoration of Impact Aid in FY 2014 and a $17 million increase in FY 2016 were welcome relief, funding caps on discretionary spending continue to be a concern for federally impacted schools. Determining a School District’s Actual Payment • The Impact Aid funding calculations are complicated because the program has not been fully funded since 1969. Currently, the Basic Support program is funded at about 55-percent of need, leaving a 45-percent unmet need and therefore, a formula was developed by Congress to fairly distribute available funds. • Payments are reduced and distributed on a “needs-based” formula. • The “Learning Opportunity Threshold” (LOT), is the percentage that indicates how dependent a school district is on Impact Aid funds—the higher the LOT percentage, the closer the LOT payment is to the Maximum Payment. • Each school district has its own LOT percentage, ranging from one-percent to 100-percent. As long as the appropriations are sufficient to fund LOT at 100 percent, a 100-percent LOT district will receive its Maximum Payment. Over the past decade, appropriations have not kept pace with increasing education costs resulting in districts receiving an increasingly lower percentage of their calculated need based payment (a percentage of a district’s maximum payment). The payout fell below 100-percent in FY 2011 (see chart), meaning even the highest-needs districts - those with a 100percent LOT - did not receive their Maximum Payment. The GFPS lot payment has been approximately 80% on average. Great Falls Public Schools - Impact Aid Revenues

Elem

Payments Interest Total

2010-2011 $892,449 $100,134 $992,583

2011-2012 $616,050 $71,029 $687,079

2012-2013 $627,758 $52,561 $680,319

2013-2014 $489,755 $17,583 $507,338

2014-2015 $618,763 $41,428 $660,191

2015 -2016 $559,079 $50,905 $609,984

2016-2017 $473,676 $61,569 $535,245

HS

Payments Interest Total

$114,773 $14,088 $128,861

$76,605 $10,003 $86,608

$70,619 $7,303 $77,922

$3,866 $3,866

$66,100 $4,339 $70,439

$61,384 $4,407 $65,791

$46,669 $3,298 $49,967

Combined

$1,121,444

$773,687

$758,241

$511,204

$730,630

$675,775

$585,212

62

VOTED LEVY HISTORY FISCAL YEAR

1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 No Levy Request

2007-2008 2008-2009 Levy Failed 2009-2010 No Levy Request

2010-2011 2011-2012 Levy Failed 2012-2013 No Levy Request

2013-2014 Levy Failed 2014-2015 2016-2017 No Levy Request

2017-2018 Bond Election

2017-2018 Tech Levy Request

ELEMENTARY VOTED LEVY VOTED LEVY APPROVED USED 15.59 mills 15.35 mills $1,416,008 $1,416,008 15.51 mills 15.96 mills $1,431,517 $1,431,517 6.82 mills 2.76 mills $611,945 $232,975 8.84.mills 8.86 mills $749,681 $749,681 5.23 mills 5.23 mills $442,858 $442,858 4.56 mills 1.99 mills $386,510 $167,909 3.35 mills 3.23 mills $282,342 $282,384 6.23 mills 0 mills $543,949 $0 0 mills 0 mills $0 $0 12.92 mills 0 mills $1,206,537 $0 0 Mills 0 Mills $1,672,699 $0 0 Mills 0 Mills $0 $0 $247,224 $247,224 2.36 Mills 2.36 Mills 0 Mills 0 mills $ 640,000 0 Mills 0 Mills $0 $0 0 Mills 0 Mills $981,748 $0 11.2 Mills 11.2 Mills $1,222,209 $1,222,209 0 Mills 0 Mills $0 $0 TBD TBD $45,910,000 TBD 0 mills 0 mills $0 $0

VOTED LEVY APPROVED 7.23 mills $671,278 7.12.mills $621,250 6.42.mills $588,084 0 mills $0 1.32 mills $116,288 5.9 mills $519,475 5.20 mills $452,929 2.09 mills $188,715 0 mills $0 6.53 mills $628,727 0 Mills $1,045,341 0 Mills $0 $647,926 6.02 Mills 0 mills $ 358,000 0 Mills $0 0 Mills $0 3.44 Mills $396,767 0 Mills $0 TBD $52,955,000 0 mills $500,000

Voters Approved - Used Total Amount Voters Approved - Used Less

63

HIGH SCHOOL VOTED LEVY USED 7.12 mills $671,278 6.78 mills $621,250 2.59 mills $226,581 0 mills $0 1.28 mills $112,530 4.81 mills $418,866 4.96 mills $447,029 0 mills $0 0 mills $0 6.15.mills $596,534 0 Mills $0 0 Mills $0 $647,926 6.02 Mills 0 mills

VOTED LEVY APPROVED 22.82 mills $2,087,286 22.63 mills $2,052,767 13.24 mills $1,200,029 8.84 mills $749,681 6.55 mills $559,141 10.46 mills $905,985 8.55 mills $753,271 8.32. mills $732,664 0 mills $0 19.45 mills $1,835,264 0 Mills $0 0 Mills $0 $895,150 8.38 Mills 0 mills

TOTAL K-12 VOTED LEVY USED 22.47 mills $2,087,286 22.74 mills $2,052,767 5.35 mills $459,556 8.86 mills $749,681 6.51 mills $555,388 6.80 mills $586,775 8.19 mills $729,371 0 mills $0 0 mills $0 6.15 mills $596,534 0 Mills $0 0 Mills $0 $895,150 8.38 Mills 0 mills

0 Mills $0 0 Mills $0 3.44 Mills $396,767 0 Mills $0 TBD TBD 0 mills $0

0 Mills $0 0 Mills $0 14.65 Mills $1,618,976 0 Mills $0 TBD $98,865,000 0 Mills $0

0 Mills $0 0 Mills $0 14.64 Mills $1,618,976 0 Mills $0 TBD TBD 0 Mills $0

FACILITIES - MASTER LIST The physical plant of the Districts is located around Great Falls on various campuses. The facilities of the Districts are detailed in the following table. Square Feet

Building/School

Elementary District Student Grades Capacity Served

Year Constructed/ Major Additions

Chief Joseph

44,040

388

K-6

1963/1966

Lewis & Clark

55,586

458

K-6

1952/1956

Lincoln

41,230

353

K-6

1951/1956

Longfellow

61,291

511

K-6

1951

Loy

53,110

458

K-6

1962

Meadow Lark

44,644

458

K-6

1961/1990

Morningside

45,594

353

K-6

1961

Mountain View

45,393

335

K-6

1969

Riverview

45,342

370

K-6

1961

Roosevelt

33,825

318

K-6

1927/1939,1950,1956

Sacajawea

43,676

370

K-6

1963

Sunnyside

44,176

388

K-6

1961

Valley View

43,503

370

K-6

1961/1966

West

81,083

581

K-6

1952/1957

Whittier

29,557

300

K-6

1938/1990

East Middle

165,000

945

7-8

1958

North Middle

128,110

882

7-8

1969

Skyline Pre-K

46,797

335

Pre-K

1970

High School District CMR High

301,673

1,533

9-12

1964/1996

Great Falls High

318,201

1,995

9-12

1930/1949,1954,1976,1977,1996

Paris Gibson Education Center

128,956

1,239

9-12

1948

Shared Facilities of the Districts District Offices1 1

Annex

Warehouse1 Lowell – Trades

2

Little Russell – Storage2

16,723

n/a

n/a

1957

n/a

n/a

n/a

1968

n/a

n/a

n/a

1964

n/a

n/a

n/a

1938/1949,1955

n/a

n/a

n/a

1932/1950

___________________ 1 2

Facilities are jointly owned by the Districts. Facilities are owned by the Elementary District.

Source: The Districts 64

FACILITY PLAN SUMMARY INFORMATION

K-8 FACILITY ISSUES ADDRESSED Upgrade Infrastructure in All K-8 Buildings $12,723,051 Build a New School to Replace Roosevelt Elementary $17,450,771 Build a New School to Replace Longfellow Elementary $15,233,211 Replace Phone System $ 500,000 SUBTOTAL K-8 $45,907,033 9-12 FACILITY ISSUES ADDRESSED Replace Phone System $ 250,000 Upgrade Memorial Stadium $ 705,000 Upgrade Paris Gibson Education Center Infrastructure $ 3,352,560 Upgrade CMR Infrastructure $ 4,364,844 Construct CMR Multipurpose and STEM classrooms; Upgrade Athletic Facilities $ 6,952,200 Upgrade GFHS Main Campus Infrastructure, Classrooms, Parking and Technology $20,758,574 Upgrade GFHS Career & Technical Education (CTE) Facilities, Lunch/Dining Areas, and Building Entrances; Add STEM and CTE Classrooms $16,568,574 SUBTOTAL 9-12 $52,951,752

TOTAL

BOND ELECTION: October 11, 2016 WHAT WILL IT COST TAXPAYERS? Taxes on a $100,000 “market valued” home estimated at $68.74/year or $5.73/month for 20 years To calculate the estimated cost for your property, go here: www.gfps.k12.mt.us

$98,858,785

C.M Russell High School expansion concepts

Great Falls High School CTE and Hub expansion concepts

65

FACILITY PLAN SUMMARY INFORMATION INFRASTRUCTURE INVESTMENTS: K-8 INFRASTRUCTURE TOTAL = $12,723,051 Chief Joseph Lockdown Warning Lights *Mechanical System Upgrade Gym Foundation Repair & Remodel Foundation Repair & Stabilization

Lewis & Clark

East

Plumbing issues

*Mechanical System Upgrade Fire Alarm System Replacement Roof Repair Partial Window Replacement

North Fire Alarm System Replacement Fire Suppression System Upgrade Exterior Door Replacement *Mechanical System Upgrade Partial Roof Replacement Foundation Repair & Stabilization Remodeling Due to Foundation Repair

Leaking roof damage

*Mechanical System Upgrade Domestic Water Piping Upgrade

9-12 INFRASTRUCTURE TOTAL = $28,475,978 CMR

Lincoln *Mechanical System Upgrade ADA Compliant Lift Install

Old & leaking boilers

Loy *Mechanical System Upgrade Manual Excavation of Tunnels Parking/Bus/Traffic Safety Improvements Electrical Upgrades

Meadowlark *Mechanical System Upgrade Parking/Traffic Safety Improvements

Leaking roofs

PGEC

Foundation issues

Partial Roof Replacement *Mechanical System Upgrade Window Replacement in Cafeteria and Library Installation of an Elevator, Elevator Shaft & Enclosure, & Stair Lifts Plumbing Upgrades Cafeteria Furnishing Upgrade

Morningside Electrical Upgrade Temperature Control Upgrade Water Main Line Replacement Foundation Repair & Stabilization

Obsolete mechanical systems

Mountain View Conversion of Storage to Education Space

Structural issues

Riverview *Mechanical System Upgrade

Sacajawea *Mechanical System Upgrade

Energy inefficient & deteriorated windows

Sunnyside *Mechanical System Upgrade

Fire Alarm System Replacement *Mechanical System Upgrade Plumbing Upgrade Foundation Repair & Stabilization Elevator Repair Perimeter Sidewalk Repair Partial Locker & Bleacher Replacement Window Panel Replacement

Obsolete phone systems

Roosevelt is 88 years old. Longfellow has extensive foundation issues

GFHS Mechanical System Upgrade Electrical Upgrade Plumbing Upgrade Classroom Remodel Window Replacement Parking Additions Technology Upgrades *Mechanical System Upgrade includes: Boiler replacement Air handling equipment upgrades Heating, ventilation, and air controls upgrades Related equipment upgrades

It is cost prohibitive to repair instead of replace these two buildings: Roosevelt’s infr astr uctur e is suffer ing fr om age making it not viable as an educational building for the future. Safety issues include serious traffic concerns and lack of accessibility. Longfellow is 64 year s old and its foundation is suffering from age and structural deficiencies. It will soon not be a viable educational facility.

66

ELEMENTARY BOND LANGUAGE & ELECTION RESULTS ELEMENTARY SCHOOL DISTRICT NO. 1 (GREAT FALLS) CASCADE COUNTY, MONTANA CERTIFICATE School District No. 1 (Great Falls), Cascade County, caused to be conducted a bond election by mail ballot on October 4, 2016, at which the following proposition was considered: Shall the Board of Trustees (the “Board”) of Elementary School District No. 1 (Great Falls), Cascade County, Montana (the “Elementary District”), be authorized to sell and issue general obligation bonds of the Elementary District in one or more series in the aggregate principal amount of up to Forty-Five Million Nine Hundred Ten Thousand and No/100 Dollars ($45,910,00.00), bearing interest at rates to be determined at the time of the sale, payable semi-annually, during a term as to each series of bonds of not more than twenty (20) years, for the purpose of providing funds to pay the costs of designing, constructing, improving, renovating, equipping, and furnishing schools in accordance with the Elementary District’s Facilities Action Plan developed to enhance learning environments, address safety and environmental concerns, identify shortcomings with and prioritize upgrading technology infrastructure, increase energy efficiency, and be responsive to shifting enrollment considerations, to include improving schools by making a variety of deferred maintenance improvements, such as replacing the phone system serving the elementary schools and making mechanical system upgrades, such as installing new boilers and temperature controls and electrical and plumbing upgrades; constructing and improving on the Longfellow Elementary campus a new school building in replacement of the existing Longfellow Elementary school and associated improvements; demolishing Lowell School and constructing and improving on the Lowell School campus a new Roosevelt Elementary school building in replacement of Lowell School and making associated improvements; renovating North Middle School to include upgrading mechanical systems, replacing doors, replacing fire suppression and alarm systems, upgrading the foundation, and replacing a portion of the roof; improving the former Russell Elementary School site by constructing a new operations building and renovating the existing for use by the Building and Grounds Department, updating mechanical systems, installing fencing and sewer system improvements, and making associated improvements to existing space; renovating East Middle School by repairing the roof, replacing the windows, upgrading mechanical systems and replacing the fire alarm system; renovating Chief Joseph Elementary by upgrading mechanical systems and repairing and stabilizing slabs and foundations; renovating Loy Elementary by upgrading mechanical, electrical, and plumbing systems, improving parking, safety, and traffic flow, installing drainage, curb, gutters, and sidewalks, and, if appropriate, associated improvements relating to shifting enrollment; installing at Whittier Elementary an Americans with Disability Act (ADA) compliant elevator and making associated improvements; upgrading the electrical system serving the computer lab at Sunnyside Elementary; installing an ADA compliant lift and associated improvements at Lincoln Elementary; replacing boilers and/or upgrading mechanical systems at Riverview Elementary, Sacajawea Elementary, Valley View Elementary, and Lewis and Clark Elementary schools, and replacing a portion of the domestic water system at Lewis and Clark Elementary School; replacing stairs outside the auditorium and upgrading mechanical systems at West Elementary and associated improvements; renovating Morningside Elementary by repairing and stabilizing the foundation and replacing the water main and upgrading electrical, mechanical, and temperature controls; making parking and traffic safety improvements and storm drain and retaining wall improvements and upgrading mechanical systems at Meadowlark Elementary; and converting storage space to teaching space at Mountain View Elementary; related improvements and costs; and paying costs associated with the sale and issuance of the bond? The total number of registered electors who were eligible to vote in the bond election was 30,742. The canvass of the votes establishes that 12,290 electors voted “BONDS - YES”, and that 7,669 electors voted “BONDS - NO”. DATED: October 17, 2016 Attest:

Clerk, School District No. 1 (Great Falls) Cascade County, Montana

Chair, School District No. 1 (Great Falls) Cascade County, Montana

67

Election Results

HIGH SCHOOL BOND LANGUAGE & ELECTION RESULTS HIGH SCHOOL DISTRICT NO. A (GREAT FALLS) CASCADE COUNTY, MONTANA CERTIFICATE High School District No. A (Great Falls), Cascade County, caused to be conducted a bond election by mail ballot on October 4, 2016, at which the following proposition was considered: Shall the Board of Trustees (the “Board”) of High School District No. A (Great Falls), Cascade County, Montana (the “High School District”), be authorized to sell and issue general obligation bonds of the High School District in one or more series in the aggregate principal amount of up to Fifty-Two Million Nine Hundred Fifty-Five Thousand and No/100 Dollars ($52,955,000.00), bearing interest at rates to be determined at the time of the sale, payable semiannually, during a term as to each series of bonds of not more than twenty (20) years, for the purpose of providing funds to pay the costs of designing, constructing, improving, renovating, equipping, and furnishing Great Falls High School, Paris Gibson Education Center, and CMR High School in accordance with the High School District’s Facilities Action Plan, to include replacing the phone system serving the high schools and upgrading mechanical, electrical and plumbing systems; renovating and improving Great Falls High School by expanding and modernizing the Career and Technical Education (CTE) space, adding and improving classrooms and a commons area, adding connecting space between main campus and south campus to house offices, classrooms, and kitchen and dining space, improving or replacing the parking lot, storm drainage, and utilities serving the school, and, if bond proceeds are available, acquiring property contiguous to or in the vicinity of the Great Falls High School campus for additional parking, installing artificial turf and resurfacing the existing track at Memorial Stadium; improving Paris Gibson Education Center by installing an Americans with Disabilities Act (ADA) compliant elevator and stair lift, replacing a portion of the roof, renovating and furnishing the cafeteria, classrooms, and bathrooms, replacing windows, and making associated improvements; renovating and expanding CMR High School by adding a multiuse facility and Science, Technology, Engineering, and Math (STEM) classrooms, repairing the foundation, upgrading mechanical systems, the school’s water system and fire alarm system, repairing the elevator and sidewalks, replacing windows and lockers, and improving the track and athletic facilities by replacing bleachers and associated improvements; related improvements and costs; and paying costs associated with the sale and issuance of the bonds? The total number of registered electors who were eligible to vote in the bond election was 30,804. The canvass of the votes establishes that 11,553 electors voted “BOND - YES”, and that 8,474 voted “BONDS NO”. THEREFORE, BE IT CERTIFIED that the above bond proposition has been approved in accordance with the provisions of section 20-9-428, MCA, and the Board of Trustees of High School District No. A (Great Falls) is hereby authorized to issue bonds for the purpose and in the amount specified in the ballot proposition. DATED: October 17, 2016

Chair, School District No. 1 (Great Falls) Cascade County, Montana

Attest:

Clerk, School District No. 1 (Great Falls) Cascade County, Montana

68

Election Results

BOND SALE INFORMATION Estimated Interest Rate provided to voters prior to Election – 4.25% Actual Rate of Bond Sale 3.17% Elementary Authorization. The District authorized the issuance and sale of school building bonds of the District in one or more series in the aggregate principal amount of up to $45,910,000 The District issued $34,675,000 in principal amount of general obligation school building bonds. The District currently anticipates that it will issue under the remaining election authority bonds in one or more series in the aggregate principal amount of up to $11,235,000 over the next three years to finance the remaining of the costs of the Projects. The indebtedness to be evidenced by the Bonds and all other indebtedness of the District does not exceed the limitation as set forth in Section 20-9-406, M.C.A. The District has full power and authority to issue the Bonds. Year Amount Rate Year Amount Rate 2018 $ 630,000 3.000% 2028 $1,775,000 4.000% 2019 1,180,000 4.000 2029 1,850,000 4.000 2020 1,225,000 4.000 2030 1,920,000 4.000 2021 1,275,000 4.000 2031 2,000,000 4.000 2022 1,325,000 5.000 2032 2,080,000 4.000 2023 1,395,000 5.000 2033 2,165,000 4.000 2024 1,460,000 5.000 2034 2,250,000 4.000 2025 1,535,000 5.000 2035 2,340,000 4.000 2026 1,610,000 5.000 2036 2,435,000 4.000 2027 1,695,000 5.000 2037 2,530,000 4.000 High School Authorization. The District authorized the issuance and sale of school building bonds of the District in one or more series in the aggregate principal amount of up to $52,955,000 The District issued $24,035,000 in principal amount of general obligation school building bonds. The District currently anticipates that it will issue under the remaining election authority bonds in one or more series in the aggregate principal amount of up to $28,920,000 over the next three years to finance the remaining of the costs of the Projects. Year Amount Rate Year Amount Rate 2018 $ 480,000 2.000% 2028 $1,225,000 4.000% 2019 840,000 4.000 2029* 60,000 3.000 2020 875,000 4.000 2029* 1,215,000 4.000 2021 195,000 2.000 2030* 655,000 3.000 2021* 715,000 4.000 2030* 670,000 4.000 2022* 270,000 2.000 2031 1,370,000 4.000 2022* 670,000 5.000 2032 1,425,000 4.000 2023* 505,000 2.000 2033 1,485,000 4.000 2023* 475,000 5.000 2034* 395,000 3.500 2024 1,015,000 5.000 2034* 1,145,000 4.000 2025 1,065,000 5.000 2035 1,600,000 4.000 2026* 175,000 2.500 2036 1,665,000 4.000 2026* 940,000 5.000 2037* 1,045,000 3.625 2027* 60,000 3.000 2037* 690,000 4.000 2027* 1,110,000 5.000

69

ELEMENTARY BOND SCHEDULE Schedule of General Obligation Bond Debt Service General Obligation Bonds. Set forth in the following table is the debt service schedule for the Elementary District Bonds and its Qualified School Construction Bonds, Series 2011 (the “Elementary 2011 QSCB Bonds”), which were issued to pay for the installation and construction of certain energy efficiency improvements. The Elementary 2011 QSCB Bonds are payable from available money in the General Fund or other legally available money, but are not secured by an unlimited tax levy, as the Elementary District Bonds are. The Elementary District anticipates that energy cost savings will be sufficient to pay the debt service related to the Elementary 2011 QSCB Bonds. Other than the debt described herein, the Elementary District will not have any other general obligation debt outstanding as of the Date of Delivery of the Elementary District Bonds. Some of the interest figures shown below have been rounded.

Elementary District Elementary 2011 The Elementary QSCB Bonds1 District Bonds Fiscal Year 20172 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total

Principal $203,570 426,511 447,770 469,843 492,758 516,545 541,237 566,865 593,464 309,689

Interest1 $145,042 270,405 242,985 214,201 184,004 152,337 119,146 84,372 47,955 9,833

$4,568,252

$1,470,280

Principal --$630,000 1,180,000 1,225,000 1,275,000 1,325,000 1,395,000 1,460,000 1,535,000 1,610,000 1,695,000 1,775,000 1,850,000 1,920,000 2,000,000 2,080,000 2,165,000 2,250,000 2,340,000 2,435,000 2,530,000 $34,675,000

Interest --$2,002,058 1,452,000 1,404,800 1,355,800 1,304,800 1,238,550 1,168,800 1,095,800 1,019,050 938,550 853,800 782,800 708,800 632,000 552,000 468,800 382,200 292,200 198,600 101,200 $17,952,608

Total1 $348,612 3,328,974 3,322,755 3,313,844 3,307,562 3,298,682 3,293,933 3,280,037 3,272,219 2,948,572 2,633,550 2,628,800 2,632,800 2,628,800 2,632,000 2,632,000 2,633,800 2,632,200 2,632,200 2,633,600 2,631,200 $58,666,140

__________________ 1

The Elementary District is entitled to receive subsidy payments from the United States Treasury Department under Section 6431(f) of the Code, which estimates are not taken into consideration above, and the reduction in the direct payment of interest from the United State Treasury Department to the Elementary District because of federal sequestration is disregarded. It is not possible to predict the amount by which the federal subsidy will be reduced in the future, if at all. (See “ELEMENTARY DISTRICT FINANCIAL INFORMATION - Schedule of General Obligation Bond Debt Service- Federal Sequestration” herein.) 2 Excludes the principal and interest payment that was paid December 15, 2016.

70

HIGH SCHOOL BOND SCHEDULE Schedule of General Obligation Bond Debt Service General Obligation Bonds. Set forth in the following table is the debt service schedule for the High School District Bonds and its Qualified School Construction Bonds, Series 2011 (the “High School 2011 QSCB Bonds”), which were issued to pay for the installation and construction of certain energy efficiency improvements. The High School 2011 QSCB Bonds are payable from available money in the General Fund or other legally available money, but are not secured by an unlimited tax levy, as the High School District Bonds are. The High School District anticipates that energy cost savings will be sufficient to pay the debt service related to the High School 2011 QSCB Bonds. Other than the debt described herein, the High School District will not have any other general obligation debt outstanding as of the Date of Delivery of the High School District Bonds. Some of the interest figures shown below have been rounded.

High School District High School 2011 The High School QSCB Bonds1 District Bonds Fiscal Year 20172 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total

Principal $58,007 121,533 127,590 133,880 140,409 147,188 154,223 161,526 169,105 88,245

Interest1 $41,329 77,051 69,238 61,036 52,431 43,408 33,950 24,041 13,665 2,802

$1,301,706

$418,951

Principal --$480,000 840,000 875,000 910,000 940,000 980,000 1,015,000 1,065,000 1,115,000 1,170,000 1,225,000 1,275,000 1,325,000 1,370,000 1,425,000 1,485,000 1,540,000 1,600,000 1,665,000 1,735,000 $24,035,000

Interest --$1318,755 959,281 925,681 890,681 858,182 819,281 785,431 734,681 681,432 630,056 572,756 523,756 473,357 426,906 372,106 315,106 255,707 196,081 132,082 65,481 $11,936,799

Total $99,336 1,997,339 1,996,109 1,995,597 1,993,521 1,988,778 1,987,454 1,985,998 1,982,451 1,887,479 1,800,056 1,797,756 1,798,756 1,798,357 1,796,906 1,797,106 1,800,106 1,795,707 1,796,081 1,797,082 1,800,481 $37,692,456

__________________ 1

The High School District is entitled to receive subsidy payments from the United States Treasury Department under Section 6431(f) of the Code, which estimates are not taken into consideration above, and the reduction in the direct payment of interest from the United States Treasury Department to the High School District because of federal sequestration is disregarded. It is not possible to predict the amount by which the federal subsidy will be reduced in the future, if at all. (See “HIGH SCHOOL DISTRICT FINANCIAL INFORMATION - Schedule of General Obligation Bond Debt Service- Federal Sequestration” herein.) 2 Excludes the principal and interest payment that was paid December 15, 2016. 71

STATE REIMBURSEMENT FOR GENERAL OBLIGATION BONDS In order to receive State Advance/Reimbursement, a school district must have outstanding general obligation bonds. Total estimated debt service payments for all school districts in Montana during fiscal year 2015/16 equaled $58,420,424 and of that amount approximately $4,000,000, or 6.85%, was paid by State Advance/ Reimbursement payments to the districts that qualified to receive such payment.

Fiscal Year 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 2004/05 2003/04 2002/03 2001/02 2000/01 1999/00 1998/99 1997/98 1996/97 1995/96 1994/95 1993/94

Total State Monies Appropriated for Advance/ Reimbursement $8,586,0001 8,586,0001 8,086,0004 8,586,000 8,586,000 8,586,000 7,420,9704 8,586,000 11,273,682 10,509,037 11,362,762 10,399,135 8,411,293 8,270,735 4,450,000 4,350,000 4,140,441 3,359,559 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 1,000,000

Amount Allocated $4,000,0001, 2 4,000,0002 8,086,0003 8,586,000 8,586,000 8,586,000 7,420,9704 8,586,000 8,657,176 9,744,392 8,447,578 9,435,508 8,411,293 8,270,735 3,990,862 4,216,183 4,140,441 3,359,559 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 800,000

Pro-Rata Allocation to Eligible Districts for Debt Service Reimbursement 38.57%1, 2 39.682 62.733 95.37 94.52 95.80 79.424 100.00 100.00 100.00 100.00 100.00 81.63 95.03 100.00 100.00 97.71 100.00 86.64 78.65 75.64 93.73 72.42 80.00

Number of School Districts Receiving State Advance/ Reimbursement 871, 2 91 90 95 98 103 101 109 112 111 101 102 100 114 73 70 60 53 51 44 35 26 19 n/a

Percent of School Districts in Montana 21%1, 2 23 22 23 24 25 26 26 27 26 24 24 23 26 17 16 13 12 11 10 8 6 4 n/a

__________________ 1

Preliminary; subject to change. The State appropriated $8,586,000 during the 2015 Legislative Session for fiscal years 2015/16 and 2016/17, which is received by school districts in May of 2016 and May of 2017 and utilized to offset debt service levies during fiscal years 2016/17 and 2017/18, respectively. However, only $4,000,000 of the $8,586,000 was available for allocation in each fiscal year and such amounts are allocated to eligible districts at an estimated pro-rata rate of 39.68% in fiscal year 2015/16 and 38.57% in fiscal year 2016/17 of the amount of reimbursement that school districts would be entitled to if funds were sufficient to pay 100% of the reimbursement, depending on factors such as the number of schools qualifying for the program in fiscal years 2015/16 and 2016/17, respectively. 3 The State appropriated $8,586,000 during the 2013 Legislative Session for fiscal year 2014/15, which was to be received by school districts in May of 2015 and utilized to offset debt service levies during fiscal year 2015/16. However, due to budget cuts in the amount of 5% (equaled $500,000 for OPI) that departments were asked to implement by the State of Montana for fiscal year 2014/15, only $8,086,000 of the $8,586,000 was available for allocation and such amount was allocated to eligible districts at an estimated pro-rata rate of 62.73% of the amount of reimbursement that school districts would be entitled to if funds were sufficient to pay 100% of the reimbursement, depending on factors such as the number of schools qualifying for the program in fiscal year 2014/15. 4 The State appropriated $9,744,392 during the 2009 Legislative Session for fiscal year 2010/11, which was to be received by school districts in May of 2011 and utilized to offset debt service levies during fiscal year 2011/12. However, due to budget cuts implemented by the State of Montana for fiscal year 2010/11, only $7,420,970 of the $9,744,392 was available for allocation and such amount was allocated to eligible districts at an estimated pro-rata rate of 79.42% of the amount of reimbursement that school districts would be entitled to if funds were sufficient to pay 100% of the reimbursement, depending on factors such as the number of schools qualifying for the program in fiscal year 2010/11. 2

Source: OPI 72

DEBT CAPACITY Elementary District’s Debt Limitation and Debt Capacity Remaining. Based on the information presented above, the Elementary District’s total statutory debt limitation is $251,380,220. Giving effect to the issuance of the Elementary District Bonds in the amount of $34,675,0001 and other outstanding Elementary District general obligation debt in the principal amount of $4,568,252, for a total of $39,243,2521, the Elementary District is expected to have remaining debt capacity following such issuance of $212,136,9681.

Current Elementary Debt Capacity Treating the remaining $11,235,0002 of Elementary District Bond Authorization as issued simultaneously with the Elementary District Bonds for an aggregate total of $50,478,2521, 2 of debt outstanding, the Elementary District’s remaining debt capacity would be equal to $200,901,9681, 2.

Projected Elementary Debt Capacity after 2nd Bond Sale High School District’s Debt Limitation and Debt Capacity Remaining. Based on the information presented above, the High School District’s total statutory debt limitation is $251,619,060. Giving effect to the issuance of the High School District Bonds in the amount of $24,035,0003 and other outstanding High School District general obligation debt in the amount of $1,301,706 for a total of $25,336,7063, the High School District is expected to have remaining debt capacity following such issuance of $226,282,3543.

Current High School Debt Capacity

Treating the remaining $28,920,0003, 4 of High School District Bond Authorization as issued simultaneously with the High School District Bonds for an aggregate total of $54,256,7063, 4 of debt outstanding, the High School District’s remaining debt capacity would be equal to $197,362,3543, 4.

Projected High School Debt Capacity after 2nd Bond Sale _________________ 1 Assumes the issuance of the Elementary District Bonds. (See “ELEMENTARY DISTRICT FINANCIAL INFORMATION – Schedule of General Obligation Bond Debt Service” herein.) 2 Assumes the issuance of the Projected 2018 Elementary District Bonds, as included in the Elementary District Bond Authorization. (See “ELEMENTARY DISTRICT FINANCIAL INFORMATION – Schedule of General Obligation Bond Debt Service” herein.) 3 Assumes the issuance of the High School District Bonds. (See “HIGH SCHOOL DISTRICT FINANCIAL INFORMATION – Schedule of General Obligation Bond Debt Service” herein.) 4 Assumes the issuance of the Projected 2018 High School District Bonds, as included in the High School District Bond Authorization. (See “HIGH SCHOOL DISTRICT FINANCIAL INFORMATION – Schedule of General Obligation Bond Debt Service” herein.)

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PROPERTY CLASSIFICATIONS FOR TAX PURPOSES Classification. Currently, there are 14 classifications of property for tax purposes. The taxable value for property is determined by applying a statutorily established percentage rate to the assessed market value of the property as follows: Property Class

Description

Tax Rate

One

Net Mine Proceeds

100% of annual net proceeds less expenses

Two

Gross Proceeds of Metal Mines

3.00% of annual gross proceeds

Three

Agricultural Land

2.16% of productive capacity

Four

Residential and Commercial

Varies1

Five

Pollution Control, Electric/Telephone Coops, etc.

3.00% of assessed value

Seven

Non-Centrally Assessed Utilities

8.00% of assessed value

Eight

Business Equipment

1.50% and/or 3.00% of assessed value2

Nine

Pipelines, Non-electric Generating Property of Electric Utilities

12.00% of assessed value

Ten

Forest Land

0.37% of forest productivity value

Twelve

Airlines and Railroads

Varies

Thirteen

Electrical Generation and Telecommunications

6.00% of assessed value

Fourteen

Renewable Energy Production and Transmission

3.00% of assessed value

Fifteen

Carbon Dioxide and Liquid Pipeline

3.00% of assessed value

Sixteen High-Voltage Converter Station 2.25% of assessed value __________________ 1 See “MONTANA SCHOOL DISTRICT FINANCING AND BUDGETING – The Montana Property Tax System – Class Four Property Tax Rates” herein. 2 See “MONTANA SCHOOL DISTRICT FINANCING AND BUDGETING – The Montana Property Tax System – Class Eight Property Tax Rates” herein.

TOP TEN MAJOR TAXPAYERS - CASCADE COUNTY The following table lists the top ten major taxpayers within the Districts for fiscal year 2016/17, in declining order of taxable value. Elementary District

Taxpayer Northwestern Energy

Business Utility

2016/17 Taxable Value $28,332,235

% of 2016/17 Taxable Value ($131,249,7611) 21.6%

High School District

2016/17 Taxable Value $30,086,212

Montana Refining Co. Inc. 9,266,053 7.1 9,266,053 Refining CenturyLink 1,965,000 1.5 2,000,983 Telecommunications Burlington Northern Sante Fe Railroad 1,664,188 1.3 1,796,533 Railroad Charter/Bresnan Communications 1,213,913 0.9 1,213,913 Telecommunications Great Falls Clinic Realty LLP 833,756 0.6 833,756 Healthcare GK Development Inc. 828,144 0.6 828,144 Holiday Village Mall Verizon Wireless 776,338 0.6 776,338 Telecommunications Pasta Montana LLC 571,552 0.4 571,552 Pasta Manufacturer 477,307 0.4 477,307 Orix Great Falls LLC Developer/Market Place $45,928,486 35.0% $47,850,791 Total __________________ 1 The taxable valuations exclude incremental valuations for tax increment financing districts within the Districts, which equaled $1,437,487 for fiscal year 2016/17.

Source: Department of Revenue – Cascade County

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% of 2016/17 Taxable Value ($133,872,6301) 22.5% 6.9 1.5 1.3 0.9 0.6 0.6 0.6 0.4 0.4 35.7%

CASCADE COUNTY TAX LEVIES Tax Levies The table below shows the mill rates per $1,000 of taxable value for property located in the Districts for the tax years 2012/13 through 2016/17. The “Total” shown below is equal to the aggregate number of mills levied against most property in the Districts located and in the City of Great Falls. Property located outside the City of Great Falls, is not levied for the City of Great Falls levies, but is levied for the Rural levies shown below. Property may be responsible for other specific levies, which are not shown below. Taxing Entity University Millage Statewide School Equalization Countywide School Cascade County Great Falls Elementary District Great Falls High School District City of Great Falls Levies City of Great Falls City of Great Falls Pool City of Great Falls Soccer Great Falls Medical Levy Transit District Transit District Medical Levy Total Rural Levies County Road County Road Reserve Conservation District Library Planning Road materials Health Dept.

2012/13 6.00 40.00 102.63 131.02 122.76 63.62

2013/14 6.00 40.00 103.48 131.36 122.06 64.53

2014/15 6.00 40.00 106.45 133.56 132.13 68.15

2015/16 6.00 40.00 101.86 121.87 124.95 61.65

2016/17 6.00 40.00 103.71 127.07 123.36 60.22

169.13 3.93 2.58 17.93 18.28 1.72 679.60

172.19 3.92 2.57 20.06 18.62 1.62 686.41

175.77 3.62 2.28 22.87 19.01 2.16 712.00

162.17 3.12 1.97 23.03 17.89 1.72 666.23

167.26 2.94 1.90 26.14 18.50 1.10 678.20

26.32 0.00 2.24 3.98 3.79 2.96 5.88

27.92 0.00 2.31 4.22 4.02 2.86 6.51

23.32 0.00 2.59 4.27 4.06 2.89 6.58

22.92 4.81 2.13 4.19 2.99 3.84 6.45

28.18 0.00 2.22 3.80 3.85 3.36 6.74

Source: Department of Revenue – Cascade County

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TAX COLLECTION HISTORY The following tables demonstrate the tax collection history for property taxes levied for the General Fund by each District for fiscal years ended June 30, 2012 through 2017. First half collections are due November 30 and second half collections are due May 31. Elementary District

_________________

Fiscal Year 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12

Total Tax Levy $13,624,153 13,380,988 12,731,884 11,724,069 11,592,529 11,371,466

Total Tax Collections1 n/a $13,363,462 12,984,515 11,533,828 11,451,349 11,171,512

% of Total Tax Levy n/a 99.9% 102.0 98.4 98.8 98.2

1

Total tax collection figures include penalty and interest collected on delinquent taxes and takes into account protested taxes that were released.

High School District

_________________

Fiscal Year 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12

Total Tax Levy $7,368,056 7,213,092 6,947,938 6,686,958 6,647,296 6,620,740

Total Tax Collections1 n/a $7,138,634 6,820,131 6,559,491 6,445,874 6,509,044

1

% of Total Tax Levy n/a 99.0% 98.2 98.1 97.0 98.3

Total tax collection figures include penalty and interest collected on delinquent taxes and takes into account protested taxes that were released.

Source: The Districts

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ELEMENTARY TAXABLE VALUATION TREND INFORMATION Elementary District. Valuation Trends. Set forth in the following table are the assessed and taxable valuations of real and personal property located within the Elementary District for the fiscal years 2008/09 through 2016/17.

Fiscal Year 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/103

Elementary District Assessed Percent of Taxable 1 Valuation Change Valuation2 $6,807,831,637 $131,249,761 1.7% 6,694,633,979 129,195,455 12.7 5,938,293,598 110,626,939 0.6 5,905,648,739 115,948,102 0.8 5,858,457,882 117,886,258 1.8 5,752,891,616 111,682,837 2.3 5,625,292,847 107,392,031 1.3 5,551,292,847 104,824,819 ---

Percent of Change 1.6% 1.8 (4.6) (1.6) 5.6 4.0 2.4 ---

_______________ 1

The assessed valuations for fiscal years 2015/16 and 2016/17 are based on the most recent reappraisal effective January 1, 2015 (fiscal year 2015/16). 2 Commencing in 2015/16 and thereafter, with the exception of Class Ten property, taxable value represents the value after the applicable tax rates are applied to assessed value. Taxable value for each taxable property is then applied to the applicable mill levy rates to generate tax revenue. The taxable valuation presented above excludes incremental valuations for tax increment financing districts within the Elementary District, which equaled $1,437,487 for fiscal year 2016/17. 3 Fiscal year 2009/10 was the first year for the prior six-year valuation cycle where the 2009 reappraisal amounts were used to determine taxable value. For the prior six-year reappraisal cycle, the full reappraisal values were effective as of January 1, 2009 with the value of new construction for classes three, four and ten added each year along with the annually appraised value of property applicable for all other property classifications. Source: Department of Revenue – State office and local office in Cascade County Valuation By Property Classification. The following table shows the assessed and taxable values for each property classification in the Elementary District for the 2016/17 fiscal year.

Elementary District Property Classification

2016/17 Assessed Value1

% of 2016/17 Assessed Value1

2016/17 Taxable Value1

% of 2016/17 Taxable Value1

3 agricultural land

$31,854,482

0.5%

$753,207

0.6%

4 residential

4,219,920,070

62.2

55,207,779

41.6

4 commercial

1,482,435,528

21.9

27,831,359

21.0

5 pollution control, elec. & telephone coop, new industry

4,342,324

0.1

130,269

0.1

7 non-centrally assessed utilities

13,444,730

0.2

1,075,578

0.8

8 business equipment 9 pipelines and non-elec. generating property of elec. utility

486,359,620

7.1

11,817,562

8.9

99,756,072

1.4

11,970,726

9.0

12 Airlines and railroads

80,506,454

1.2

2,447,396

1.8

13 electrical generation and telecommunication

353,818,077

5.2

21,206,960

16.0

14 renewable energy production & transmission property

13,158,002

0.2

197,370

0.2

Total

$6,785,595,359

100.0%

$132,638,206

100.0%

_________________ 1

Represents information provided at the State level and may differ from certified valuations due to timing of the data being compiled.

Source: Department of Revenue

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HIGH SCHOOL TAXABLE VALUATION TREND INFORMATION High School District. Valuation Trends. Set forth in the following table are the assessed and taxable valuations of real and personal property located within the High School District for the fiscal years 2008/09 through 2016/17.

Fiscal Year 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/103

High School District Assessed Percent of Taxable ValuaValuation1 Change tion2 $6,868,325,644 1.6% $133,872,630 6,760,189,457 12.4 129,195,455 6,016,347,199 0.5 113,816,460 5,985,233,218 (0.1) 115,948,102 5,988,814,980 3.0 117,886,258 5,813,194,280 2.2 114,335,966 5,685,769,562 1.3 110,123,591 5,612,640,342 --107,592,791

Percent of Change 3.6% 13.5 (1.8) (1.6) 3.1 3.8 2.4 ---

_________________ 1

The assessed valuations for fiscal years 2015/16 and 2016/17 are based on the most recent reappraisal effective January 1, 2015 (fiscal year 2015/16). 2 Commencing in 2015/16 and thereafter, with the exception of Class Ten property, taxable value represents the value after the applicable tax rates are applied to assessed value. Taxable value for each taxable property is then applied to the applicable mill levy rates to generate tax revenue. The taxable valuation presented above excludes incremental valuations for tax increment financing districts within the High School District, which equaled $1,437,487 for fiscal year 2016/17. 3 Fiscal year 2009/10 was the first year for the prior six-year valuation cycle where the 2009 reappraisal amounts were used to determine taxable value. For the prior six-year reappraisal cycle, the full reappraisal values were effective as of January 1, 2009 with the value of new construction for classes three, four and ten added each year along with the annually appraised value of property applicable for all other property classifications. Source: Department of Revenue – State office and local office in Cascade County Valuation By Property Classification. The following table shows the assessed and taxable values for each property classification in the High School District for the 2016/17 fiscal year.

Property Classification

High School District 2016/17 % of 2016/17 1 Assessed Value Assessed Value1

3 agricultural land 4 residential 4 commercial 5 pollution control, elec. & telephone coop, new industry

$43,476,677 4,234,862,015 1,482,843,638 4,460,493

7 non-centrally assessed utilities 13,444,730 8 business equipment 486,908,876 9 pipelines and non-elec. generating property of elec. utility 104,743,663 12 Airlines and railroads 84,859,899 13 electrical generation and telecommunication 377,534,598 13,158,002 14 renewable energy production & transmission property $6,846,292,591 Total 1

2016/17 % of 2016/17 1 Taxable Value Taxable Value1

0.6% 61.9 21.7 0.1

$1,006,993 55,406,258 27,839,072 133,815

0.7% 41.0 20.6 0.1

0.2 7.1 1.5 1.2 5.5 0.2 100.0%

1,075,578 11,823,057 12,569,238 2,579,741 22,629,951 197,370 $135,261,073

0.8 8.7 9.3 1.9 16.7 0.2 100.0%

Represents information provided at the State level and may differ from certified valuations due to timing of the data being compiled.

Source: Department of Revenue 78

PER CAPITA INCOME AND UNEMPLOYMENT RATES CASCADE COUNTY The table below shows the County employment figures as well as the State and United States unemployment rates since 2007. Cascade County Year Labor Force 1 2016 38,660 2015 38,888 2014 38,548 2013 38,572 2012 38,374 2011 38,333 2010 38,447 2009 40,611 2008 40,401 2007 39,577 __________________ 1

- - - - - - - - Unemployment Rates - - - - - - - Cascade Coun- State of Monty tana United States 3.7% 3.9% 4.7% 4.0 4.1 4.8 4.3 4.7 5.4 5.1 5.4 6.5 5.6 6.0 7.6 6.4 6.9 8.3 6.4 7.3 9.1 5.4 6.8 9.7 4.7 5.1 7.1 3.5 3.6 4.8

Employment 37,224 37,335 36,893 36,602 36,241 35,882 35,996 38,410 38,519 38,199

Preliminary unemployment information as of October 2016.

Source: U.S. Department of Labor, Bureau of Labor Statistics

Personal Income Trends The following table shows total and per capita personal income growth in the County from 2011 through 2015. Year 2015 2014 2013 2012 2011

Total Personal

Percent of

Income (000’s)

Change

$3,460,063 3,346,485 3,223,823 3,259,393 3,193,939

3.4% 3.8 (1.1) 2.0 ---

Per Capita Income $42,053 40,678 39,140 39,862 39,059

Percent of Change 3.4% 3.9 (1.8) 2.1 ---

Source: U.S. Department of Commerce, Regional Economic Information Center, Bureau of Economic Analysis

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NOTES ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________

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