2014 comprehensive annual financial report

COMPREHENSIVE ANNUAL FINANCIAL REPORT OF WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 WAYZATA, MINNESOTA YEAR ENDED JUNE 30, 2014

PREPARED BY THE DEPARTMENT OF FINANCE AND BUSINESS SERVICES

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2014

INTRODUCTORY SECTION LETTER OF TRANSMITTAL

1

SCHOOL BOARD AND ADMINISTRATION

6

ADMINISTRATIVE TEAM

7

CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING

8

FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT

9

REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT’S DISCUSSION AND ANALYSIS

12

BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION

27

STATEMENT OF ACTIVITIES

28

GOVERNMENTAL FUNDS – BALANCE SHEET

29

RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION

30

GOVERNMENTAL FUNDS – STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE

31

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE – GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

32

GENERAL FUND – STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

33

MAJOR FOOD SERVICE FUND – STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

34

MAJOR COMMUNITY SERVICE FUND – STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

35

PROPRIETARY FUND – INTERNAL SERVICE FUND – STATEMENT OF NET POSITION

36

PROPRIETARY FUND – INTERNAL SERVICE FUND – STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

37

PROPRIETARY FUND – INTERNAL SERVICE FUND – STATEMENT OF CASH FLOWS

38

STATEMENT OF FIDUCIARY NET POSITION

39

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

39

NOTES TO BASIC FINANCIAL STATEMENTS

40

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS (CONTINUED) YEAR ENDED JUNE 30, 2014

REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS AND OTHER PENSION BENEFITS PAYABLE

75

SUPPLEMENTAL INFORMATION GENERAL FUND BALANCE SHEET

76

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

77

FOOD SERVICE SPECIAL REVENUE FUND BALANCE SHEET

80

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

81

COMMUNITY SERVICE SPECIAL REVENUE FUND BALANCE SHEET

82

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

83

CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND BALANCE SHEET

84

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES

85

DEBT SERVICE FUND BALANCE SHEET

86

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE – BUDGET AND ACTUAL

87

INTERNAL SERVICE FUND COMBINING STATEMENT OF NET POSITION

88

COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGE IN NET POSITION

89

COMBINING SCHEDULE OF CASH FLOWS

90

UNIFORM FINANCIAL ACCOUNTING AND REPORTING STANDARDS COMPLIANCE TABLE

91

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS (CONTINUED) YEAR ENDED JUNE 30, 2014

STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT

92

CHANGES IN NET POSITION

94

FUND BALANCES, GOVERNMENTAL FUNDS

96

CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

98

NET TAX CAPACITY AND VALUATION OF ALL TAXABLE PROPERTY

100

DIRECT AND OVERLAPPING PROPERTY TAX RATES

101

PRINCIPAL PROPERTY TAXPAYERS

103

PROPERTY TAX LEVIES AND COLLECTIONS

104

OUTSTANDING DEBT BY TYPE

106

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT

107

LEGAL DEBT MARGIN INFORMATION

108

DEMOGRAPHIC AND ECONOMIC STATISTICS

110

PRINCIPAL EMPLOYERS

111

FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

112

OPERATING STATISTICS

113

BUILDING INFORMATION

114

INTRODUCTORY SECTION

October 27, 2014 To:

Citizens of the District Board of Education Dr. Chace B. Anderson, Superintendent of Schools

INTRODUCTION We respectfully submit the Comprehensive Annual Financial Report of Independent School District No. 284, Wayzata, Minnesota (the District) for the fiscal year ended June 30, 2014. Responsibility for the entire financial report rests with District management. The report contains all of the funds of the District in conformity with accounting principles generally accepted in the United States of America (GAAP) for defining the reporting entity.

As required as a part of “Required Supplementary Information” by GASB Statement No. 34 is a “Management’s Discussion and Analysis” (MD&A) which allows the District to explain in layman’s terms its financial position and results of operations of the past fiscal year.

The Comprehensive Annual Financial Report is presented in three primary sections as follows: • • •

Introductory Section Financial Section Statistical Section

The introduction includes a list of Principal Officials, an organizational chart, and this transmittal letter.

The financial section includes the basic financial statements, individual fund statements and related schedules. The Independent Auditor’s Report is also included in the financial section. Notes to the financial section are provided to enhance the reader’s understanding of Wayzata Public Schools’ accounting policies and procedures. The statistical section includes selected financial and general information presented on a multiyear comparative basis.

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ECONOMIC CONDITION AND OUTLOOK The District is a public educational system serving a 38 square-mile area located in the western portion of Hennepin County. District boundaries encompass either the entire geographic area or portions of the communities of Wayzata, Plymouth, Minnetonka, Medicine Lake, Orono, Medina, Maple Grove, and Corcoran.

For 2013-2014, District facilities included seven elementary schools, three middle schools, a senior high school, a district administration center, an educational services center, and a central service facility.

Enrollment for the 2013-2014 school year was 10,708 pupils in adjusted average daily membership, which represents an increase of 51 students from the prior year. Demographic forecasts project an increase in enrollment for the next several years. Projected enrollments for the near future per an independent demographer hired by the District are: Fiscal Year 2015 2016

Enrollment 10,800 11,040

The tax base of the District decreased 1.97% during the past year. The market value of all taxable property in the District in fiscal year 2014 was $9,628,799,946 compared to $9,821,945,763 in fiscal year 2013.

The net tax capacity of the District for fiscal year 2014 was $109,307,508 a decrease of .53% over the prior year value of $109,891,883.

The state fiscal disparities law provides for the pooling of 40% of all new commercial/industrial property valuation added since 1971 in the seven-county Minneapolis-Saint Paul metropolitan area. The pooled valuation is redistributed among the taxing jurisdictions according to population and a ratio measuring relative fiscal capacity. Local tax rates reflect the net contribution/distribution of fiscal disparities valuation. The District has been a net contributor to the fiscal disparities pool in recent years. The District contributed $2,299,284 in fiscal year 2013 and $2,277,153 in fiscal year 2014.

FINANCIAL INFORMATION In developing and evaluating the District’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable assurance regarding: (1) the safeguarding of assets and (2) the reliability of financial records used in the preparation of financial statements in conformity with GAAP. The concept of reasonable assurance recognizes that the costs of internal control should not exceed the benefits likely to be derived and that the value of costs and benefits requires estimates and judgments by management.

An annual budget is adopted by the Board of Education (the School Board) for the General, Special Revenue, and Debt Service Funds. The Department of Finance and Business Services maintains budgetary control. Management and the School Board review monthly reports.

The reader is directed to the Management’s Discussion and Analysis report for a more in depth look at the General Fund and other major fund highlights.

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LOOKING FORWARD The District’s commitment to fiscal responsibility has enabled the District to maintain positive fund balance reserves in recent years. Currently, the General Fund has an unassigned fund balance of approximately $10.9 million which represents 9% of expenditures and slightly exceeds the board policy minimum fund balance of 5%-7% of expenditures. The board has assigned an additional $1.8 million of fund balance for specific purposes.

On November 3, 2009, District voters approved the renewal of two referenda to increase annual operating revenues. Question One requested an increase in the operating referendum dollars that are authorized under state statute to include an inflationary increase based upon the consumer price index.

(CPI) Question Two requested approval for a capital projects levy to cover technology costs for existing and new services and equipment. The operating referendum levy is for approximately $19.0 million in fiscal year 2014 and will be adjusted for inflation (estimated at 3%) for future years. The capital projects levy is based upon tax rates and raised $5.5 million in fiscal year 2014. Both renewed authorizations are for ten years. On February 25, 2014, voters approved a renewal of the portion of the capital projects levy that was set to expire after taxes payable in 2015. The authority raises approximately $2,719,481 per year and is authorized for ten years.

An indicator of continued financial health is the tremendous level of new private investment within the District. The City of Plymouth is the largest municipality within the District and it is anticipated that the commercial and residential growth of the Plymouth community will continue during the next decade.

From 1990 to 2010, the population of Plymouth grew from 50,889 to an estimated 70,576, or 39%. In addition, in 2010, the market value of taxable property in the District was $9,963,416,806, an increase of more than $8 billion (330%) since 1990. In the last year market values have declined slightly.

The state support in the current economic environment, combined with the additional support approved by the voters, means the District’s financial picture is stable. The District was in a position to maintain existing staff ratios and programs in fiscal year 2014 and has adequate reserves.

Below are some facts about the 2014-2015 budget:  

Student enrollment is expected to increase The General Fund unassigned balance at year-end is projected at $11 million

Revenues:    

General Fund revenue will increase to $130 million Basic Formula is $5,302 for FY 2014 and due to a simplification of the weighting for determining pupil units, the basic formula was increased to $5,831 for FY 2015.

The referendum levy is $1,629.53 per pupil unit State special education funding formula has changed effective for FY 2015. The District is anticipating a slightly less amount of aid in special education due to this change and a decrease in the number of special education students served.

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LOOKING FORWARD (CONTINUED) Expenditures:     

General Fund expenditures will increase to $129.8 million $3.5 million will be spent for class size reduction and other in-class, direct instructional services for students Capital projects (technology) levy continues at $5.5 million Alternative Compensation Plan spending is $2.7 million for staff development, peer coaching, and performance bonuses for teachers Health insurance and dental insurance premiums were increased by an average of 4.0%

Construction Projects: 

In February 2014, voters approved a bond issue of $109.45 million to construct an eighth elementary school, additions to the high school and district wide infrastructure improvements.

The elementary school and the high school classroom additions are slated for a Fall 2016 opening.



The District continues to access alternative facilities bond and pay as the District levies dollars to make improvements in the areas of deferred maintenance. The project costs of approximately $8-$10 million per year are utilized for roof repairs, paving projects, boiler and chiller replacements, windows, doors, painting, flooring and a variety of other deferred maintenance items.

OTHER INFORMATION State law requires an annual audit by independent certified public accountants. The accounting firm of CliftonLarsonAllen LLP was selected by the School Board to conduct the annual audit. In addition to meeting the requirements set forth in state law, the audit also was designed to meet the requirements of the federal Single Audit Act as amended in 1996 and the related Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The auditors’ report on the financial statements is included in the financial section of this report. The auditors’ reports related specifically to the single audit are issued as a separate report which is available from the District upon request.

This report has been prepared following guidelines recommended by the Association of School Business Officials International (ASBO) for its Certificate of Excellence in Financial Reporting program.

Achieving recognition by this program is a clear indication of the District’s establishment of high standards for financial reporting. Independent School District No. 284 was awarded the ASBO Certificate of Excellence in Financial Reporting for its 2013 Comprehensive Annual Financial Report.

We believe our current report continues to conform to ASBO’s Certificate of Excellence program requirements.

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We acknowledge the efforts of the entire accounting staff in providing complete and accurate data for fiscal year 2014 Comprehensive Annual Financial Report.

Respectfully submitted,

James R. Westrum Executive Director, Finance and Business Services

Jill Schwint Controller

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 SCHOOL BOARD AND ADMINISTRATION JUNE 30, 2014

SCHOOL BOARD NAME

POSITION

Ms. Linda A. Cohen Mr. Jay Hesby Ms. Carter G. Peterson Ms. Cheryl Polzin Ms. Andrea Cuene Ms. Sarah Johansen Mr. Chris McCullough Dr. Chace B. Anderson

Chair Vice Chair Treasurer Clerk Director Director Director Ex Officio

ADMINISTRATION NAME

POSITION

Dr. Chace B. Anderson

Superintendent of Schools

Dr. Jill Johnson

Executive Director of Teaching and Learning

Ms. Annie Doughty

Executive Director of Human Resource Services

Mr. Jim Westrum

Executive Director of Finance and Business Services

Ms. Jill Schwint

Controller

District Offices:

Independent School District No. 284 Wayzata Public Schools 210 County Road 101 North P.O. Box 660 Wayzata, MN 55391-0660 (763) 745-5000 Fax: (763) 745-5091

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 ADMINISTRATIVE TEAM JUNE 30, 2014

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING JUNE 30, 2014

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FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT

Members of the Board of Education Independent School District No. 284 Wayzata Public Schools Wayzata, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Independent School District No. 284, Wayzata, Minnesota as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

An independent member of Nexia International

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Members of the Board of Education Independent School District No. 284 Wayzata Public Schools

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Independent School District No. 284 as of June 30, 2014, and the respective changes in financial position, the budgetary comparison for General, Food Service and Community Service funds and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Prior Year Summarized Information We have previously audited Independent School District No. 284’s 2013 financial statements of the governmental activities, each major fund and the aggregate remaining fund information, and we have expressed an unmodified opinion on those audited financial statements in our report dated December 5, 2013. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2013 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedule of funding progress for postemployment benefits and other pension benefits payable as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Independent School District No. 284’s basic financial statements. The introductory section, statistical section, combining and individual fund financial statements and the Uniform Financial Accounting and Reporting (UFARS) compliance table are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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Members of the Board of Education Independent School District No. 284 Wayzata Public Schools

Other Matters (Continued) Other Information (Continued) The combining and individual fund financial statements and the UFARS compliance table are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 27, 2014, on our consideration of Independent School District No. 284's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Independent School District No. 284’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP Minneapolis, Minnesota October 27, 2014

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REQUIRED SUPPLEMENTARY INFORMATION

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

This section of Wayzata Public Schools – Independent School District No. 284’s annual financial report presents our discussion and analysis of the District’s financial performance during the fiscal year that ended on June 30, 2014. Please read it in conjunction with the District’s financial statements, which immediately follow this section. The Management’s Discussion and Analysis (MD&A) is an element of Required Supplementary Information specified in the Governmental Accounting Standard Board’s (GASB) Statement No. 34 – Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.

FINANCIAL HIGHLIGHTS Key financial highlights for the 2013-2014 fiscal year include the following: 

Net position decreased by $4,741,146, or 4% from June 30, 2013.



Overall General Fund revenues were $122,767,904 as compared to expenditures of $119,160,361.



Government Wide expenses totaled $154,176,350 as compared to prior year expenses of $141,520,391.



Total fund balance of the General Fund decreased $3,263,071 from $25,460,065 in 2013 to $22,196,994 in 2014, a decrease of 12.8%.



The District made payments on its outstanding bonds payable totaling $8,830,000 and issued General Obligation Building Bonds and Alternative Facilities Bonds totaling $136,805,000.

OVERVIEW OF THE FINANCIAL STATEMENTS The financial section of the annual report consists of four parts – the Independent Auditors' Report, the required supplementary information which includes the management’s discussion and analysis (this section), the basic financial statements, and the supplemental information. The basic financial statements include two kinds of statements that present different views of the District: 

The first two statements are government-wide financial statements that provide both short-term and long-term information about the District’s overall financial status.



The remaining statements are fund financial statements that focus on individual parts of the District, reporting the District’s operations in more detail than the government-wide statements.



The governmental funds statements tell how basic services such as regular and special education were financed in the short term as well as what remains for future spending.



Proprietary funds statements offer short- and long-term financial information about the activities the District operates like businesses.



Fiduciary funds statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others to whom the resources belong.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

The financial statements also include notes that explain some of the information in the statements and provide more detailed data.

Figure A-1 shows how the various parts of this annual report are arranged and related to one another.

Figure A-1 Annual Report Format

Government-Wide Statements The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the District’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the District’s net position and how they have changed. Net position – the difference between the District’s assets, deferred outflows of resources and liabilities and deferred inflows of resources – is one way to measure the District’s financial health or position. 

Over time, increases or decreases in the District’s net position are an indicator of whether its financial position is improving or deteriorating, respectively.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014



To assess the overall health of the District one must consider additional non-financial factors such as changes in the District’s property tax base and the condition of school buildings and other facilities.

In the government-wide financial statements the District’s activities are shown in one category: 

Governmental Activities – Most of the District’s basic services are included here, such as regular and special education, transportation, administration, food services, and community education. Property taxes and state aids finance most of these activities.

Fund Financial Statements The fund financial statements provide more detailed information about the District’s funds – focusing on its most significant or “major” funds – not the District as a whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending on particular programs: 

Some funds are required by State law and by bond covenants.



The District establishes other funds to control and manage money for particular purposes (e.g., repaying its long-term debts) or to show that it is properly using certain revenues (e.g., federal grants).

The District has three kinds of funds: 

Governmental Funds – Most of the District’s basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending.

Consequently, the governmental funds statements provide a detailed short-term view that helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statements that explains the relationship (or differences) between them.



Proprietary Funds - Internal Service Funds – Used to report activities that provide supplies and services for the District’s other programs and activities. The District currently has one internal service fund for self-insurance of health and dental benefits, various early retirement benefit packages for employee groups, and post-retirement health care benefits. Internally such activity is maintained in separate funds, which are combined into one for state reporting purposes.



Fiduciary Funds – The District is the trustee, or fiduciary, for assets that belong to others, such as the scholarship funds. The District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes, and by those to whom the assets belong.

All of the District’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the government-wide financial statements because the District cannot use these assets to finance its operations.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Net Position The District’s combined net position was $114,102,233 on June 30, 2014. This was a change of 4.0% from the prior year (see Table A-1).

Table A-1 The District's Net Position Governmental Activities 2014 2013 Current and Other Assets Capital and Non-Current Assets Total Assets Current Liabilities Long-Term Liabilities Total Liabilities Deferred Inflows of Resources Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position

Percentage Change

$ 252,169,164 135,639,987 387,809,151

$ 128,596,697 116,891,083 245,487,780

96.1 % 16.0 58.0

29,593,054 197,460,388 227,053,442

26,656,139 69,136,908 95,793,047

11.0 185.6 137.0

46,653,476

30,851,354

51.2

60,689,911 12,624,943 40,787,379 $ 114,102,233

46,152,372 27,560,100 45,130,907 $ 118,843,379

31.5 (54.2) (9.6) (4.0)

The District’s financial position changed with a net position decrease of $4,741,146 from 2013 to 2014.

Following are some of the highlights of that net change: a) Total assets increased $142.3 million of which the Current and Other Assets portion had a net increase of $123.6 million combined with an increase of $18.7 million relating to Capital and Non-Current Assets. The increase in current and other assets was largely attributed to the District issuing $136.8 million in bonds for the construction of a new school and alternative facilities projects. The increase in Capital and Non-Current Assets was mostly due to the purchase of land and additions to construction and progress as the District commenced with the construction of a new school. b) Total liabilities increased by $131.3 million, which was largely attributed to the issuance of $136.8 million in bonds for the construction of a new school and alternative facilities projects.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

Changes in Net Position The District’s total revenues were $149,435,204 for the year ended June 30, 2014. Property taxes and state aid accounted for 80% of total revenue for the year (see Figure A-2). An additional 19% came from program revenues and the remainder from other general revenues and investment earnings.

Table A-2 Change in Net Position Governmental Activities for the Fiscal Year Ended June 30, 2014 2013 Revenues Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues Property Taxes Unrestricted State Aid Investment Earnings Other Total Revenues

$

12,272,278 15,171,555 346,713

$

11,863,834 15,850,856 252,929

Total % Change

3.4 % (4.3) 37.1

34,488,482 84,572,800 1,170,089 1,413,287 149,435,204

48,427,215 67,408,720 771,106 3,459,844 148,034,504

(28.8) 25.5 51.7 (59.2) 0.9

Expenses Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Interest and Fiscal Charges on Long-Term Liabilities Total Expenses

3,833,741 4,924,827 64,030,267 2,376,614 16,664,813 9,446,640 11,606,924 23,108,226 355,757 5,367,185 8,343,413

3,995,998 4,154,320 59,732,311 2,629,151 16,037,522 8,464,618 11,528,889 19,492,550 318,578 5,193,226 7,913,272

(4.1) 18.5 7.2 (9.6) 3.9 11.6 0.7 18.5 11.7 3.3 5.4

4,117,943 154,176,350

2,059,956 141,520,391

99.9 8.9

Increase in Net Position Beginning Net Position Ending Net Position

(4,741,146) 118,843,379 114,102,233

6,514,113 112,329,266 118,843,379

$

$

The total cost of all programs and services excluding interest and fiscal charges was approximately $150 million. Total expenditures exceeded revenues, decreasing net position $4.7 million from last year.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

The cost of all governmental activities this year was $154,176,350. 

The portion of the cost paid by the users of the District’s programs was $12,272,278.



Federal, state and local governments subsidized certain programs with grants and contributions $15,518,268.



Other District revenues included a total of $34,488,482 in property taxes and $84,572,800 of unrestricted state aid. Property tax revenue decreased $13,938,733 with a corresponding increase in state aids of $17,164,080 mainly due to the payback of the property tax shift and an increase in resident enrollment.

Figure A-2 Sources of District's Revenues for Fiscal 2014

All Other 2%

Charges for Services 8% Operating and Capital Grants 10%

Unrestricted State Aid 57%

Property Taxes 23%

Figure A-3 District Expenses for Fiscal 2014

Maintenance 15%

Other 3%

Admin 2%

Food & Comm Service 9%

Instruction-Related 54%

Student Support Services 17%

(17)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

Typically the District does not include in an analysis of government-wide activities a breakout of expenses as depicted in Figure A-3. To do so distorts the latitude available to the District to allocate resources to instruction. All governmental funds includes not only funds received for the general operation of the District, which are used for classroom instruction, but also includes resources from the entrepreneurial-type funds of Food Service and Community Education, and from resources for debt service transactions. Funding for the general operation of the District is controlled by the state and the District does not have the latitude to allocate money received in Food Service or Community Education or for debt service to enhance classroom instruction resources. The above graph, by pooling all expenditures, implies that the District can spend any of its funds for classroom instruction. In Minnesota, that is simply not the case. A more accurate analysis of resources allocated to instruction should be limited to an analysis of resources received for the general operation of the District. That analysis would show that more than 60% of those resources are spent directly on instruction.

Table A-3 Program Expenses and Net Cost of Services Total Cost of Services 2014 2013 Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Interest and Fiscal Charges on Long-Term Liabilities Total

$

3,833,741 4,924,827 64,030,267 2,376,614 16,664,813 9,446,640 11,606,924 23,108,226 355,757 5,367,185 8,343,413

4,117,943 $ 154,176,350

$

3,995,998 4,154,320 59,732,311 2,629,151 16,037,522 8,464,618 11,528,889 19,492,550 318,578 5,193,226 7,913,272

2,059,956 $ 141,520,391

Percentage Change

Net Cost of Services 2014 2013

(4.1)% 18.5 7.2 (9.6) 3.9 11.6 0.7 18.5 11.7 3.3 5.4

$

3,630,759 4,877,192 53,319,230 1,660,457 15,149,547 9,427,735 10,109,970 22,194,149 355,757 169,868 1,373,197

99.9 8.9

4,117,943 $ 126,385,804

$

3,720,039 4,118,382 48,588,692 2,126,438 14,071,369 8,405,133 9,922,178 18,925,092 318,578 (32,075) 1,328,990

2,059,956 $ 113,552,772

Percentage Change (2.4)% 18.4 9.7 (21.9) 7.7 12.2 1.9 17.3 11.7 (629.6) 3.3 99.9 11.3

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS This portion of management’s discussion and analysis will refer to the District’s funds, which are summarized starting on page 29. The financial performance of the District as a whole is reflected in its governmental funds as well. As the District completed the year, its governmental funds reported a combined fund balance of $155,057,975, which was $110,234,586 more than last year’s ending fund balance of $44,823,389.

Revenues for the District’s governmental funds were $148,014,639, while total expenditures were $179,095,700. Other financing sources totaled $141,315,647.

(18)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

General Fund The General Fund includes the primary operations of the District in providing educational services to students from kindergarten through grade 12, including pupil transportation activities and capital outlay projects.

The majority of General Fund operational revenue is controlled by a complex set of state funding formulas. This includes a general education revenue formula based on enrollment and special education state aid based upon a cost reimbursement model providing approximately half of special education personnel expenditures. State law also restricts the amount of operating revenue a district can collect from property taxes.

Enrollment Enrollment is a critical factor in determining revenue. The following chart shows that the number of students has consistently increased slightly over the previous four years. Due to space constraints, the District has limited the number of students accepted thru the open enrollment process. The District is anticipating continued growth in enrollment due to new home starts within the District’s boundaries.

Table A-4 Enrollment Trend Average Daily Membership (ADM) 2010 Reg K, Pre-K & KH Elementary Secondary Total Students for Aid Percent Change

2011

2012

2013

2014

761 4,649 4,967

785 4,754 4,972

667 4,900 4,977

740 4,877 5,040

675 4,949 5,083

10,377 1.77%

10,511 1.29%

10,544 0.31%

10,657 1.07%

10,708 0.48%

WAYZATA PUBLIC SCHOOLS Student Enrollment (in ADMs)

12,000

10,000 8,000 6,000 4,000

2,000 0 2010

2011

2012

Secondary

(19)

Elementary

2013

2014

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

Student enrollment is at current or above physical capacity of the buildings and projected total enrollments for the next five years show increased enrollment. Voters approved the construction of an eighth elementary school and additions to the high school in anticipation of the capacity issues. The buildings are slated to be occupied in Fall 2016.

The following schedule presents a summary of General Fund Revenues.

Table A-5 General Fund Revenues June 30, 2014

Fund Local Sources: Property Taxes Earnings on Investments Other State Sources Federal Sources Total General Fund Revenue

Year Ended June 30, 2013

$

22,479,230 15,632 2,766,696 94,355,252 3,151,094 $ 122,767,904

$

$

36,090,719 19,525 3,346,111 78,596,478 3,190,552 121,243,385

Change Increase (Decrease) Percent

$ (13,611,489) (3,893) (579,415) 15,758,774 (39,458) $ 1,524,519

(37.7)% (19.9) (17.3) 20.1 (1.2) 1.3

Total General Fund Revenue increased by $1,524,519 or 1.3% from the previous year. The change in revenue is primarily due to the following: 

The increase in State Sources was due to the buy down of the tax shift.



The decrease in Other revenues was due to the sale of land held by the District during fiscal year 2012-13. In early 2013-14, the District purchased land to be used during the construction projects.



Decrease in Property Taxes was due to the repayment of the tax shift.

(20)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

The following schedule presents a summary of General Fund Expenditures.

Table A-6 General Fund Expenditures Year Ended June 30, 2014 Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Expenditures

Amount of Increase (Decrease)

June 30, 2013

$

70,635,758 21,728,583 17,587,982 3,477,625 3,856,886 1,873,527 $ 119,160,361

$

69,326,326 20,761,352 17,836,623 3,578,819 1,401,852 842,046 $ 113,747,018

$

$

1,309,432 967,231 (248,641) (101,194) 2,455,034 1,031,481 5,413,343

Percent Increase (Decrease) 1.9 % 4.7 (1.4) (2.8) 175.1 122.5 4.8

Total General Fund Expenditures increased by $5,413,343 or 4.8% from the previous year. Salaries increased by $1,309,432 over the previous year, or 1.9%, and benefits increased by $967,231, or 4.7%.

Capital Expenditures increased by $2,455,034, or 175.1%, related to the completion of a building addition financed in 2012-13 with certificate of participation certificates and capital dollars.

In addition to the General Fund Expenditures shown in Table A-6, the amount of $7,245,011 was transferred to the Capital Projects/Building Construction Fund. This included the technology levy of $5.5 million; the remaining $1.7 million was for alternative facilities projects.

In 2013-2014, General Fund expenditures and other financing uses were more than revenues and other financing sources by $3,263,071. After deducting statutory reserves, the unassigned fund balance decreased from $11,476,097 at June 30, 2013 to $10,926,181 at June 30, 2014.

The unassigned fund balance is the single best measure of overall financial health. The unassigned fund balance of $10,926,181 at June 30, 2014 represents 9% of annual expenditures. The District has had a Board approved fund balance policy in place since 1988 requiring that an unassigned balance (changed from unreserved fund balance starting in Fiscal Year 2011) in the General Fund with a minimum of 5%-7% of the previous year’s expenditures be maintained, although that policy was temporarily suspended during the period of state revenue shortfalls beginning in 2002-2003. The fund balance currently is slightly above the policy minimum specifications. The 2014-2015 budget projects that the fund balance will increase slightly.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

General Fund Budgetary Highlights Following approval of the budget prior to the beginning of the fiscal year, the District revises the annual operating budget in mid-year. These budget amendments typically fall into two categories: 

Implementing budgets for specially funded projects, which include both federal and state grants and reinstating unexpended funds being carried over, and budgeting for expenditure changes.



Legislation that passes subsequent to budget adoption, changes necessitated by collective bargaining agreements, and increases in appropriations for significant unbudgeted costs.

Actual General Fund revenues were $145,819 less than budgeted due to slightly less enrollment than projected.

Total General Fund expenditures were $367,241 less than budgeted. The variance represents items that are budgeted and the budget will be carried over for future years.

Other Major Funds The following schedules present a summary of Special Revenue Funds Revenue and Expenditures.

Table A-7 Special Revenue Fund Revenues Food Service

Revenue Local Property Taxes Other Local Revenue (Fee, Etc.) State Sources Federal Sources Sales and Other Conversion of Assets Total Revenues

$

$

Community Education

139,398 1,251,762 3,806,157 5,197,317

$

$

781,025 6,856,799 1,185,418 8,823,242

Fiscal 2014 Total $

$

781,025 6,856,799 1,324,816 1,251,762 3,806,157 14,020,559

Increase (Decrease) Over FY 2013 $

$

(682,558) 478,855 803,972 48,470 (80,724) 568,015

Table A-8 Special Revenue Fund Expenditures Food Service

Expenditures Pupil Support Services Community Education Services Capital Total Expenditures

$

$

Community Education

5,226,866 101,955 5,328,821

(22)

$

$

8,491,628 15,368 8,506,996

Fiscal 2014 Total $

$

5,226,866 8,491,628 117,323 13,835,817

Increase (Decrease) Over FY 2013 $

$

141,585 650,356 (64,929) 727,012

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

Total Special Revenue Fund Revenues increased 4% from the previous year. The Food Service Fund decreased revenues by $27,984 noting a decrease in student participation and a decrease in sales funded without reimbursement.

Community Education revenues increased by $595,999 primarily due to additional revenues from patrons and utilization of the District’s school aged childcare, youth, and after school programming. The Community Education Fund will also return to the taxpayers approximately $249,000 in levy dollars anticipated but unused.

The Food Service fund balance is $1,225,357, or 23.0% of expenditures, as of June 30, 2014. This amount reflects a decrease of $131,504 from a beginning balance of $1,356,861. This decrease is $131,677 less than budgeted, and represents a 2.5 percent (2.5%) variance when compared to the total expenditures of the fund. The Fund was budgeted using a conservative approach due to the new federal nutrition guidelines. These new guidelines have layered effective dates and additional adjustment may be needed in future years.

The Community Service fund balance is $2,013,812, or 23.7% of expenditures, as of June 30, 2014.

This amount reflects an increase of $325,061 from a beginning balance of $1,688,751. This increase is $576,926 more than budgeted, and represents approximately a 6.8 percent (6.8%) variance when compared to the total expenditures of this fund. The Fund budgeted using a conservative approach due to capacity concerns. The Fund also experienced $249,000 less in expenses compared to revenues in the extended day disabled levy. Those dollars will be returned to the taxpayer in future years.

The Food Service and the Community Service Funds continue to balance their revenues and expenditures. These self-supporting funds have maintained their financial position despite rising costs and reductions in state and federal funding formulas. From the standpoint of maintaining current operating expenditures within the range of annual revenue and maintaining a sound fund balance, both the Food Service and the Community Service Funds continue to operate on a sound financial basis.

Capital Project and Debt Service Funds The Capital Projects - Building Construction Fund is used to account for money received by the District from bond issues. The District issued $109.6 in General Obligation Building Bonds and $27.16 million in General Obligation Alternative Facilities Bonds in 2014. The proceeds from these issues will be used for the construction of a new school, an addition to the high school and infrastructure improvements throughout the district.

This fund also includes “alternative facilities” moneys—formerly health and safety projects over $500,000 for which there is separate levy authority. These sources are transferred on an annual basis from the general fund to the capital projects fund. The issuance of alternative facilities bonds replaces this funding source and only represents projects started prior to the issuance of the bonds but not yet completed.

State accounting rules also require that revenue from the Capital Projects (Technology) Levy be accounted for in this fund. Approximately $5.5 million was transferred from the General Fund for this purpose and expended from the Capital Projects – Building Construction Fund.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

In the prior years, the District issued capital facilities bonds to finance certain capital projects of the District, including energy conservation, safety and security, and future maintenance at various District sites and facilities.

The Capital Projects and Construction fund balance increased from a balance of $14,369,419 as of June 30, 2013 to a balance of $124,716,990 as of June 30, 2014. Most of the increase can be attributed to the issuance of $136.8 million in bonds.

The Debt Service Fund represents resources obtained from local voter-approved levies to pay principal and interest on outstanding bond issuances. There were no new refunding bond issues in the debt service fund in 2014. The District issued $136.8 million of bonds during 2014, $2,683,622 of these proceeds were allocated to the Debt Service Fund.

Internal Service Fund Proprietary funds such as the Internal Service Fund use the same basis of accounting as business-type activities; therefore, these statements will essentially match the information provided in statements for the District as a whole.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets By the end of 2014, the District had invested slightly more than $230 million in a broad range of capital assets, including school buildings, athletic facilities, computer and audio-visual equipment, and administrative offices (see Table A-9). Total depreciation expense for the year exceeded $6.5 million.

See Note 4 in the Notes to Basic Financial Statements for further information on capital assets and depreciation.

Table A-9 The District’s Capital Assets

2014 Land Construction in Progress Land Improvements Buildings and Improvements Equipment Less: Accumulated Depreciation Total

2013

$ 20,505,939 8,909,611 9,687,055 175,728,148 16,036,277 (95,227,043)

$

$ 135,639,987

$ 116,891,083

(24)

6,854,939 6,054,072 9,687,055 166,985,033 15,972,538 (88,662,554)

Percentage Change 199.1 % 47.2 5.2 0.4 7.4 16.0

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

Construction – Next Five Years A 1998 bond referendum authorized the issuance of $18.5 million in bonds for technology and future maintenance. The projects funded with those bonds cleared a substantial backlog of future maintenance needs. The primary current needs of the District are to upgrade Heating, Ventilation, AirConditioning (HVAC) systems in buildings to meet 21st century ventilation standards. The District has completed HVAC upgrades at its seven elementary schools, and completed the third middle school in 2012. The District issued alternative facilities bonds in fiscal year 2012, to address additional maintenance needs. The projects will progress over the next few years.

In July 2013, the District purchased land adjacent to the high school in anticipation of enrollment growth and in May 2014, the District purchased land for an elementary school site.

On February 25, 2014, the voters of the District approved a bond levy to build an eighth elementary school, additions to the High School, and infrastructure improvements throughout the District. The school sites are slated for a Fall 2016 opening. The voters also approved the portion of the capital facilities levy that was set to expire for taxes payable after 2015. The authority extends for ten years.

Long-Term Liabilities At year-end, the District had $184,045,000 in general obligation bonds, an increase of 228.2% from last year. The District also has liabilities for early retirement incentive payable and has achieved close to full funding of this liability along with the other postemployment benefits liability under GASB Statement No. 45 and accounts for these resources in either an irrevocable trust or in an internal service fund. See Notes 5, 9, and 10 in the Notes to Basic Financial Statements for further explanation.

Table A-10 The District’s Long-Term Liabilities 2014 General Obligation Bonds Net Bond Premium and Discount Certificates of Participation Payable Capital Leases Payable Early Retirement Incentive Payable Sick Leave Payable Compensated Absences Payable Total Long-Term Liabilities: Due Within One Year Due in More Than One Year Total

2013

Percentage Change

$ 184,045,000 4,628,582 10,355,000 1,300,465 5,104,201 4,436,215 490,232

$

56,070,000 2,095,615 11,655,000 918,096 5,687,137 4,988,036 486,374

228.2 % 120.9 (11.2) 41.6 (10.3) (11.1) 0.8

$ 210,359,695

$

81,900,258

156.8

$

12,899,307 197,460,388

$

12,763,350 69,136,908

$

210,359,695

$

81,900,258

(25)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2014

The state limits the amount of general obligation debt the District can issue to 15% of the assessed value of all taxable property within the District. The District’s outstanding debt is significantly below this limit – which is currently about $1.6 billion.

FACTORS BEARING ON THE DISTRICT’S FUTURE With the exception of the voter-approved excess operating referendum, the District is dependent on the State of Minnesota for the bulk of its revenue authority. State funds typically provide over 72% of the District’s general fund revenue. Recent economic forecasts would lead the District’s administration to remain cautious in projecting the state formula increases in future years. In an attempt to hold Minnesota school districts harmless, the 2013 legislature increased the general education formula allowance $74 beginning with the 2013-14 school year.

The District will continue to strive to maintain its long-standing commitment to academic excellence and educational opportunity for students within a framework of financial fiduciary responsibility.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Business Office, Independent School District 284, District Administrative Office, P.O. Box 660, Wayzata, Minnesota 55391-0660.

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Bond Ratings The District’s bonds presently carry a Standard and Poor’s “AAA” rating.

The District’s bonds also carry a Moody’s “Aa1” rating. Only 3 other Minnesota School districts share this rating, which is the highest Moody’s has assigned to any school district in this state.

BASIC FINANCIAL STATEMENTS

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 STATEMENT OF NET POSITION JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

Governmental Activities 2014 2013 ASSETS Cash and Investments Cash and Investments Held by Trustee Receivables: Property Taxes Other Governments Other Prepaid Items Inventories Prefunded Postemployment and Pension Obligations Bond Issuance Costs, Net Capital Assets: Land and Construction in Progress Other Capital Assets, Net of Depreciation

$

Total Assets LIABILITIES Salaries and Compensated Absences Payable Accounts and Contracts Payable Accrued Interest Due to Other Governmental Units Property Tax Shift Adjustment Claims Payable for Health and Dental Benefits Unearned Revenue: Local Sources Long-Term Liabilities: Portion Due Within One Year Portion Due in More Than One Year Total Liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year NET POSITION Net Investment in Capital Assets Restricted for: General Fund Required Reserves Food Service Community Service Debt Service Capital Projects - Building Construction Unrestricted Total Net Position

$

See accompanying Notes to Basic Financial Statements.

(27)

195,037,602 1,375,001

$

57,851,617 8,307,440

24,347,614 9,275,639 1,820,770 133,518 194,671 19,984,349 -

24,747,834 14,008,264 1,720,699 280,464 153,596 20,971,339 555,444

29,415,550 106,224,437

12,909,011 103,982,072

387,809,151

245,487,780

2,487,321 8,531,724 1,525,220 618,571 2,171,690

2,381,069 6,216,903 995,359 684,593 50,602 1,647,178

1,359,221

1,917,085

12,899,307 197,460,388

12,763,350 69,136,908

227,053,442

95,793,047

46,653,476

30,851,354

60,689,911

46,152,372

6,474,793 1,225,357 2,025,894 532,306 2,366,593 40,787,379

9,081,101 1,356,861 1,688,751 1,063,968 14,369,419 45,130,907

114,102,233

$

118,843,379

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Functions Governmental Activities Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Interest and Fiscal Charges on Long-Term Liabilities Total School District

Charges for Services

Expenses

$

3,833,741 4,924,827 64,030,267 2,376,614 16,664,813 9,446,640 11,606,924 23,108,226 355,757 5,367,185 8,343,413

Program Revenues Operating Grants and Contributions

$

202,982 1,021,619 1,324 560 18,905 28,369 662,870 3,806,157 6,529,492

$

9,642,138 714,833 1,514,115 1,468,585 1,391,160 440,724

4,117,943

-

-

$ 154,176,350

$ 12,272,278

$ 15,171,555

General Revenues Property Taxes Levied for: General Purposes Community Service Debt Service State Aid Not Restricted to Specific Purposes Earnings on Investments Gain on Sale of Capital Asset Miscellaneous Total General Revenues Change in Net Position

Capital Grants and Contributions

Net (Expense) Revenue and Changes in Net Position Total Governmental Activities

2013 Net (Expense) Revenue and Changes in Net Position Total Governmental Activities

$

47,635 47,280 591 251,207 -

$

$

-

(4,117,943)

(2,059,956)

$

346,713

(126,385,804)

(113,552,772)

22,503,184 781,857 11,203,441 84,572,800 1,170,089 1,413,287

35,975,717 1,458,919 10,992,579 67,408,720 771,106 1,692,690 1,767,154

121,644,658

120,066,885

(3,630,759) (4,877,192) (53,319,230) (1,660,457) (15,149,547) (9,427,735) (10,109,970) (22,194,149) (355,757) (169,868) (1,373,197)

(4,741,146)

Net Position - Beginning Net Position - Ending

See accompanying Notes to Basic Financial Statements.

(28)

(3,720,039) (4,118,382) (48,588,692) (2,126,438) (14,071,369) (8,405,133) (9,922,178) (18,925,092) (318,578) 32,075 (1,328,990)

6,514,113

118,843,379

112,329,266

$ 114,102,233

$ 118,843,379

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

Major Funds

ASSETS Cash and Investments Cash and Investments Held by Trustee Receivables: Current Property Taxes Delinquent Property Taxes Due from Other Minnesota School Districts Due from Minnesota Department of Education Due from Federal through Minnesota Department of Education Due from Federal Government Received Directly Due from Other Governmental Units Accounts and Interest Receivable Due from Other Funds Prepaid Items Inventory Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Due to Other Governmental Units Property Tax Shift Adjustment Unearned Revenue: Local Sources Total Liabilities Deferred Inflows of Resources: Property Taxes Levied for Subsequent Year Delinquent Property Taxes Total Deferred Inflows of Resources Fund Balance: Nonspendable: Prepaid Items Inventory Restricted for: Staff Development Capital Projects Levy Alternative Facilities Program Projects Funded by Certificates of Participation Cooperative Revenue Deferred Maintenance Basic Skills Programs Health and Safety Operating Capital Safe Schools Levy Dome Escrow Worker's Compensation Escrow Community Education Programs Early Childhood and Family Educations Programs School Readiness Bond Refundings Other Purposes Committed for: Purchase of Land Parcel Assigned for: Re-Employment Insurance One-Time Capital Transfer Site Carryover Q Comp Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balance

General

Food Service

Community Service

Capital Projects Building Construction

$ 26,643,874 1,320,502

$ 1,623,995 -

$ 3,773,003 -

$ 127,945,145 54,499

$ 10,917,101 -

$ 170,903,118 1,375,001

$ 39,346,469 8,307,440

17,700,743 260,044 183,498 7,179,126

-

743,011 10,811 236,672 36,703

-

5,551,748 81,257 62

23,995,502 352,112 420,170 7,215,891

24,257,664 490,170 504,328 12,345,176

1,419,936 36,923 182,719 131,156 8,072,385 20,823 119,077

544 6,339 75,594

163,912 105 -

86,615 103,151 -

-

1,419,936 36,923 182,719 382,227 8,072,385 130,418 194,671

902,532 256,228 328,886 277,364 153,596

$ 63,270,806

$ 1,706,472

$ 4,964,217

$ 128,189,410

$ 16,550,168

$ 214,681,073

$ 87,169,853

$

$

$

$

$

$

$

306,569 1,964,264 4,191,604 617,378 -

913 233,121 -

173,816 24,000 325,567 1,193 -

4,399 13,360 3,358,950 -

Debt Service

Total Governmental Funds 2014 2013

2,275 -

485,697 2,001,624 8,111,517 618,571 -

429,449 1,951,620 6,105,480 684,593 50,602

148,782 7,228,597

247,081 481,115

867,647 1,392,223

95,711 3,472,420

2,275

1,359,221 12,576,630

1,917,085 11,138,829

33,554,997 290,218 33,845,215

-

1,546,100 12,082 1,558,182

-

11,552,379 90,692 11,643,071

46,653,476 392,992 47,046,468

30,851,354 356,281 31,207,635

20,823 119,077

6,339 75,594

105 -

103,151 -

-

130,418 194,671

277,364 153,596

578,652 274,277 226,248 82,819 4,042,485 91,766 364,500 814,046 -

1,143,424

1,319,048 6,870 14,965 672,824

2,858,275 26,870,808 94,884,756

133,574 4,771,248

578,652 2,858,275 26,870,808 274,277 226,248 82,819 4,042,485 91,766 364,500 814,046 1,319,048 6,870 14,965 133,574 101,472,252

828,462 2,403,043 7,663,807 4,327,763 250,000 274,277 666,428 138,106 5,408,794 116,244 364,500 814,046 1,023,557 7,508 3,880,893

2,889,790

-

-

-

-

2,889,790

2,889,790

142,108 588,935 872,570 162,717 10,926,181 22,196,994

1,225,357

2,013,812

124,716,990

4,904,822

142,108 588,935 872,570 162,717 10,926,181 155,057,975

178,491 588,935 819,591 272,097 11,476,097 44,823,389

$ 63,270,806

$ 1,706,472

$ 4,964,217

$ 128,189,410

$ 16,550,168

$ 214,681,073

$ 87,169,853

See accompanying Notes to Basic Financial Statements.

(29)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

2014 Total Fund Balance for Governmental Funds

2013

$ 155,057,975

$

44,823,389

Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. Those assets consist of: Land Construction in Progress Land Improvements, Net of Accumulated Depreciation Buildings and Improvements, Net of Accumulated Depreciation Equipment, Net of Accumulated Depreciation Some of the District's property taxes will be collected after year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as deferred inflows of resources in the funds.

Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due.

Bond issuance costs are reported as expenditures in the governmental funds.

Internal service funds are used by management to charge the costs of health and dental insurance services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position at year-end is:

20,505,939 8,909,611 3,519,852 100,284,059 2,420,526

6,854,939 6,054,072 3,908,966 96,668,822 3,404,284

392,992

356,281

(1,525,220)

(995,359)

-

555,444

5,371,429

7,466,287

Long-term liabilities that pertain to governmental funds, including bonds payable, are not due and payable in the current period and, therefore, are not reported as fund liabilities. All liabilities - both current and long term - are reported in the statement of net position. Balances at year-end are: Bonds Payable Unamortized Premiums Certificates of Participation Payable Obligations Under Capital Leases Other Post Employment Benefits Prefunded Compensated Absences Payable

(184,045,000) (4,628,582) (10,355,000) (1,300,465) 19,984,349 (490,232)

Total Net Position of Governmental Activities

$ 114,102,233

See accompanying Notes to Basic Financial Statements.

(30)

(56,070,000) (2,095,615) (11,655,000) (918,096) 20,971,339 (486,374) $ 118,843,379

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

Major Funds

Food Service

General REVENUES Local Sources: Property Taxes Earnings on Investments Other State Sources Federal Sources

$

Total Revenues EXPENDITURES Current: Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Capital Outlay Debt Service: Principal Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures

$

3,806,157 139,398 1,251,762

Total Other Financing Sources (Uses)

$

22,215 11,830 -

$ 11,191,516 615 -

$

34,451,771 37,847 13,441,482 95,680,683 4,402,856

$

48,582,021 29,798 13,621,129 79,118,659 4,393,844

34,045

11,192,131

148,014,639

145,745,451

3,809,563 3,812,160 57,161,164 2,282,764 16,143,749 9,359,060 11,181,875 9,618,077 355,757 3,856,886

5,226,866 101,955

8,491,628 15,368

34,025,982

-

3,809,563 3,812,160 57,161,164 2,282,764 16,143,749 9,359,060 11,181,875 9,618,077 355,757 5,226,866 8,491,628 38,000,191

3,942,490 3,966,678 55,749,366 2,596,694 15,890,551 8,432,986 11,487,282 9,429,780 318,578 5,085,281 7,841,272 21,516,463

1,300,000 279,306

-

-

1,101,989

8,830,000 2,141,551

10,130,000 3,522,846

9,580,000 2,405,085

119,160,361

5,328,821

8,506,996

35,127,971

10,971,551

179,095,700

158,242,506

220,580

(31,081,061)

(12,497,055)

(131,504)

(131,504)

25,460,065 22,196,994

316,246

-

(3,263,071)

$

781,025 6,856,799 1,185,418 8,823,242

(6,870,614)

Fund Balances - Beginning

$

Total Governmental Funds 2014 2013

Debt Service

5,197,317

246,425 136,787 (7,253,826)

Net Change in Fund Balances

Community Service

122,767,904

3,607,543

OTHER FINANCING SOURCES (USES) Proceeds from Sale of Equipment Proceeds from Sale of Real Property Insurance Recovery Proceeds Face Amount of Bonds Issued Proceeds from Capital Leases Certificates of Participation Proceeds Bond Premium Transfers In Transfers Out

Fund Balances - Ending

22,479,230 15,632 2,766,696 94,355,252 3,151,094

Capital Projects Building Construction

1,356,861 $

1,225,357

$

See accompanying Notes to Basic Financial Statements.

(31)

(35,093,926)

8,815 -

5,187 136,805,000 1,099,073 287,226 7,245,011 -

2,735,949 -

251,612 136,805,000 1,235,860 3,023,175 7,253,826 (7,253,826)

2,900 2,889,790 9,861 1,383,350 9,980,000 214,066 7,673,940 (7,673,940)

8,815

145,441,497

2,735,949

141,315,647

14,479,967

325,061

110,347,571

2,956,529

110,234,586

1,982,912

1,688,751

14,369,419

2,013,812

$ 124,716,990

$

1,948,293

44,823,389

4,904,822

$ 155,057,975

42,840,477 $

44,823,389

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014 Net Change in Fund Balance - Total Governmental Funds

$ 110,234,586

2013 $

1,982,912

Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital Outlays Gain on Disposal of Capital Assets Proceeds from Sales of Capital Assets Depreciation Expense

25,313,393 (6,564,489)

13,369,923 1,692,690 (2,892,690) (6,264,539)

(1,235,860) (24,244) 853,491

(1,383,350) (5,201) 474,273

(136,805,000) (3,023,175) 1,300,000 8,830,000 (550,309) 44,692 (555,444) 490,208

(9,980,000) (214,066) 158,616 515,000 9,065,000 55,830 (79,055) (94,640) 468,195

Some capital asset additions are financed through capital leases. In governmental funds, a capital lease arrangement is considered a source of financing, but in the statement of net position, the lease obligation is reported as a liability. Repayment of capital lease principal is an expenditure in the governmental funds, but repayment reduces the lease obligation in the statement of net position.

Other Financing Source - Capital Lease Change in Accrued Interest Expense - Capital Leases Principal Payments - Capital Leases The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported as an expenditure. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report the effect of discounts and premiums when debt is first issued, whereas discounts and premiums are amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is as follows: Debt Proceeds Bond Premium Bond Issuance Costs Repayment of Certificates of Participation Payable Repayment of Bond Principal Change in Accrued Interest Expense - General Obligation Bonds Interest Expense - Capital Loans Amortization of Bond Issuance Costs Amortization of Bond Premium Delinquent property taxes receivable will be collected this year, but are not available soon enough to pay for the current period’s expenditures and, therefore, are unavailable in the funds.

36,711

In the statement of activities, certain operating expenses - compensated absences - are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid).

(3,858)

2,721

(986,990)

807,139

In the statement of activities, certain prefunded long-term obligations - other postemployment health care benefits and other pension benefits - are measured by the amounts of the actuarial accrued liability which is prefunded. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid).

Internal service funds are used by the District to charge the costs of employee health and dental benefits to individual funds. The net revenue of the internal service funds is reported with governmental activities.

Change in Net Position of Governmental Activities

(2,094,858) $

See accompanying Notes to Basic Financial Statements.

(32)

(154,806)

(4,741,146)

(1,009,839) $

6,514,113

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014

Budgeted Amounts Original Final REVENUES Local Sources: Property Taxes Earnings on Investments Other State Sources Federal Sources

$

Total Revenues EXPENDITURES Current: Administration District Support Services Elementary and Secondary Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Capital Outlay Debt Service: Principal Interest and Fiscal Charges Total Expenditures

36,101,052 20,000 2,339,753 81,299,219 3,037,397

Total Other Financing Sources (Uses) Net Change in Fund Balance

22,336,731 20,000 2,434,778 94,840,559 3,281,655

Actual Amounts

$

22,479,230 15,632 2,766,696 94,355,252 3,151,094

$

142,499 (4,368) 331,918 (485,307) (130,561)

122,797,421

122,913,723

122,767,904

(145,819)

3,918,511 3,969,161 56,207,726 2,444,310 15,942,721 9,587,359 11,530,424 9,614,779 436,317 2,769,627

3,871,594 3,886,024 57,972,232 2,535,382 16,507,050 10,438,368 11,561,497 9,646,154 331,378 1,198,617

3,809,563 3,812,160 57,161,164 2,282,764 16,143,749 9,359,060 11,181,875 9,618,077 355,757 3,856,886

(62,031) (73,864) (811,068) (252,618) (363,301) (1,079,308) (379,622) (28,077) 24,379 2,658,269

-

1,300,000 279,307

1,300,000 279,306

(1)

116,420,935

119,527,602

119,160,361

(367,241)

6,376,486

3,386,121

3,607,543

221,422

5,000 (7,319,991)

5,000 (7,319,991)

246,425 136,787 (7,253,826)

(5,000) 246,425 136,787 66,165

(7,314,991)

(7,314,991)

(6,870,614)

444,377

(3,928,870)

(3,263,071)

Excess of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Sale of Equipment Insurance Recovery Proceeds Proceeds from Capital Leases Transfers Out

$

Over (Under) Final Budget

$

(938,505)

$

FUND BALANCE Beginning of Year

25,460,065

End of Year

$

See accompanying Notes to Basic Financial Statements.

(33)

22,196,994

$

665,799

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MAJOR FOOD SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014

Budgeted Amounts Original Final REVENUES Local Sources: Other - Primarily Meal Sales State Sources Federal Sources

$

Total Revenues EXPENDITURES Current: Food Service Capital Outlay Total Expenditures Net Change in Fund Balance

$

4,071,903 136,200 1,080,163

$

4,071,903 136,200 1,080,163

Over (Under) Final Budget

Actual Amounts

$

3,806,157 139,398 1,251,762

$

(265,746) 3,198 171,599

5,288,266

5,288,266

5,197,317

(90,949)

5,431,447 120,000

5,431,447 120,000

5,226,866 101,955

(204,581) (18,045)

5,551,447

5,551,447

5,328,821

(222,626)

(263,181)

$

(263,181)

(131,504)

FUND BALANCE Beginning of Year

1,356,861

End of Year

$

See accompanying Notes to Basic Financial Statements.

(34)

1,225,357

$

131,677

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MAJOR COMMUNITY SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014

Budgeted Amounts Original Final REVENUES Local Sources: Property Taxes Other - Primarily Tuition and Fees State Sources

$

Total Revenues EXPENDITURES Current: Community Service Capital Outlay Total Expenditures

1,532,119 6,509,071 418,780

$

787,509 6,509,071 1,202,765

Actual Amounts

$

781,025 6,856,799 1,185,418

$

(6,484) 347,728 (17,347)

8,459,970

8,499,345

8,823,242

323,897

8,674,525 112,310

8,713,900 112,310

8,491,628 15,368

(222,272) (96,942)

8,786,835

8,826,210

8,506,996

(319,214)

Excess (Deficiency) of Revenues Over (Under) Expenditures

(326,865)

(326,865)

OTHER FINANCING SOURCES Transfer In

75,000

75,000

Net Change in Fund Balance

Over (Under) Final Budget

$

(251,865)

$

316,246

8,815

(251,865)

325,061

FUND BALANCE Beginning of Year

1,688,751

End of Year

$

See accompanying Notes to Basic Financial Statements.

(35)

643,111

2,013,812

(66,185) $

576,926

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPRIETARY FUND INTERNAL SERVICE FUND STATEMENT OF NET POSITION JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

Governmental Activities Internal Service Funds 2014 2013 ASSETS Current Assets: Cash and Cash Equivalents Investments Interest Receivable Accounts Receivable Prepaid Items

$

Total Current Assets LIABILITIES Current Liabilities: Accounts Payable Claims Payable for Health and Dental Benefits Due to Other Funds Total Current Liabilities Long-Term Liabilities: Liability for Early Retirement Incentives Sick Leave Payable Total Long-Term Liabilities Total Liabilities NET POSITION Unrestricted

$

See accompanying Notes to Basic Financial Statements.

(36)

5,080,246 19,054,238 270,113 1,168,430 3,100

$

574,940 17,930,208 261,901 1,129,912 3,100

25,576,127

19,900,061

420,207 2,171,690 8,072,385

111,423 1,647,178 -

10,664,282

1,758,601

5,104,201 4,436,215

5,687,137 4,988,036

9,540,416

10,675,173

20,204,698

12,433,774

5,371,429

$

7,466,287

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPRIETARY FUND INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

Governmental Activities Internal Service Funds 2014 2013 OPERATING REVENUES Charges for Services Assessments Made to Other Funds for Retirement Benefits

$

Total Operating Revenues OPERATING EXPENSES Health Insurance Claim and Premium Payments Dental Insurance Claim and Premium Payments Early Retirement Incentive and Sick Leave Benefits General Administration Fees Total Operating Expenses Operating Loss NONOPERATING REVENUE Earnings on Investments

17,966,678 -

$

13,529,533 437,424

17,966,678

13,966,957

19,672,393 1,410,607 107,678 3,100

13,365,328 1,084,334 1,262,317 6,125

21,193,778

15,718,104

(3,227,100)

(1,751,147)

1,132,242

741,308

Change in Net Position

(2,094,858)

(1,009,839)

Net Position - Beginning

7,466,287

8,476,126

Net Position - Ending

$

See accompanying Notes to Basic Financial Statements.

(37)

5,371,429

$

7,466,287

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPRIETARY FUND INTERNAL SERVICE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

Governmental Activities Internal Service Funds 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Interfund Services Provided Payments for Medical Fees and Insurance Claims Payments for Retirement Benefits Net Cash Used by Operating Activities

$

17,928,160 (20,555,356) (939,883) (3,567,079)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer from Other Funds

8,072,385

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

4,505,306

Cash and Cash Equivalents - Beginning

$

(1,719,830)

574,940

CASH AND CASH EQUIVALENTS - ENDING RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities: Increase in Accounts Receivable Increase in Prepaid Items Increase in Accounts Payable Increase in Claims Payable Decrease in Liability for Early Retirement Incentives Increase (Decrease) in Sick Leave Payable Net Cash Used by Operating Activities

5,080,246

$

$

(3,227,100)

$

$

See accompanying Notes to Basic Financial Statements.

(38)

2,294,770

$

Total Adjustments

13,926,090 (14,161,929) (1,483,991) (1,719,830)

574,940

(1,751,147)

(38,518) 308,784 524,512 (582,936) (551,821)

(40,867) (3,100) 6,320 290,638 (541,412) 319,738

(339,979)

31,317

(3,567,079)

$

(1,719,830)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2014

PrivatePurpose Trust ASSETS Cash and Investments Assets Held in Trust for Postemployment Benefits Interest Receivable

$

Total Assets

317,091 53

Total Net Position

$

$

32,975,937 -

317,144

32,975,937

-

17,000

317,144 -

32,958,937

LIABILITIES Accounts and Contracts Payable NET POSITION Held in Trust for Private Purpose Held in Trust for Postemployment Benefits and Other Purposes

Other PostEmployment Benefit Trust

317,144

$

32,958,937

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2014

PrivatePurpose Trust ADDITIONS Gifts and Donations Earnings on Investments OPEB Contributions Total Additions

$

7,722 330 8,052

Other Post Employment Benefit Trust

$

4,670,302 1,353,832 6,024,134

DEDUCTIONS Miscellaneous

12,700

2,542,918

Change in Net Position

(4,648)

3,481,216

Net Position - Beginning of Year

321,792

Net Position - End of Year

$

See accompanying Notes to Basic Financial Statements.

(39)

317,144

29,477,721 $

32,958,937

NOTES TO BASIC FINANCIAL STATEMENTS

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Presentation The financial statements of Independent School District No. 284 have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

B. Financial Reporting Entity Independent School District No. 284 (the District) is an instrumentality of the State of Minnesota established to function as an educational institution. The elected School Board (Board) is responsible for legislative and fiscal control of the District. A Superintendent is appointed by the Board and is responsible for administrative control of the District.

GAAP require that the District's financial statements include all funds, departments, agencies, boards, commissions, and other organizations which are not legally separated from the District. In addition, the District's financial statements are to include all component units - entities for which the District is financially accountable.

Financial accountability includes such aspects as appointing a voting majority of the organization's governing body, significantly influencing the programs, projects, activities or level of services performed or provided by the organization or receiving specific financial benefits from, or imposing specific financial burden on, the organization. There are no other entities for which the District is financially accountable.

Student activities are determined primarily by student participants under the guidance of an adult and are generally conducted outside school hours. The School Board does have a fiduciary responsibility in establishing broad policies and ensuring that appropriate financial records are maintained for student activities. However, in accordance with Minnesota State Statutes, the District's School Board has not elected to control or exercise oversight responsibility with respect to the underlying student activities. Accordingly, the student activity accounts are not included in these financial statements.

(40)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basic Financial Statement Presentation The Government-wide financial statements (i.e. the statement of net position and the statement of activities) display information about the reporting government as a whole.

These statements include all the financial activities of the District, except for the fiduciary funds. The Fiduciary Funds are only reported in the statements of Fiduciary Net Position at the Fund Financial Statement level.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available. Depreciation expense that can be specifically identified by function is included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the statement of activities. Generally, the effect of material interfund activity has been removed from the Government-wide financial statements.

Separate Fund financial statements are provided for governmental, proprietary, and fiduciary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Fiduciary funds are presented in the fiduciary fund financial statements by type: private purpose trust and other postemployment benefit trust. Since by definition, fiduciary fund assets are being held for the benefit of a third party and cannot be used for activities or obligations of the District, these funds are excluded from the Government-wide statements.

The Internal Service Fund is presented in the proprietary fund financial statements.

Because the principal users of the internal services are the District’s governmental activities, the financial statement of the internal service fund is consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the District’s internal service fund is charges for service in the form of insurance premiums, early retirement incentive costs, and sick pay. Operating expenses for the internal service fund include the cost of services. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

(41)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment applied is determined by its measurement focus and basis of accounting. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are generally recognized as revenues in the fiscal year for which they are levied, except for amounts advance recognized in accordance with a statutory “tax shift” described later in these notes.

Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting transactions are recorded in the following manner: 1. Revenue Recognition Revenue is recognized when it becomes measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property tax revenue is generally considered as available if collected within 60 days after year-end. State revenue is recognized in the year to which it applies according to Minnesota Statutes and GAAP. Minnesota Statutes include state aid funding formulas for specific fiscal years. Federal revenue is recorded in the year in which the related expenditure is made. Food service sales, community education tuition, and other miscellaneous revenue (except investment earnings) are recorded as revenues when received because they are generally not measurable until then. Investment earnings are recorded when earned because they are measurable and available. A six-month availability period is generally used for other fund revenue.

2. Recording of Expenditures Expenditures are generally recorded when a liability is incurred. However, expenditures are recorded as prepaid for approved disbursements or liabilities incurred in advance of the year in which the item is to be used. Principal and interest on long-term debt issues are recognized on their due dates.

(42)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) Description of Funds The existence of the various District funds has been established by the State of Minnesota, Department of Education. The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. A description of the funds included in this report are as follows: Major Governmental Funds General Fund The General Fund is used to account for all financial resources except those required to be accounted for in another fund. It includes the general operations and pupil transportation activities of the District, as well as the capital related activities such as maintenance of facilities equipment purchases, health and safety projects, and disabled accessibility projects.

Food Service Special Revenue Fund The Food Service Fund is used to account for food service revenues and expenditures.

Revenues recorded in this fund include charges for meals along with state and federal reimbursements for meals.

Community Service Special Revenue Fund The Community Service Fund is used to account for services provided to residents in the areas of recreation, civic activities, nonpublic pupils, veterans, adult or early childhood programs, K-6 extended day programs or other similar services. Revenues recorded in this fund include property taxes restricted for Community Service purposes and tuition and fees charged for Community Education.

Capital Projects – Building Construction Fund The Capital Projects – Building Construction Fund is used to account for financial resources used for the acquisition or construction of major capital facilities. The Fund was established for building construction activity authorized by specific voter-approved bond issues and for large-scale construction activity authorized by the Board under provisions of state law.

Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for, and payment of, general long-term obligation bond principal, interest, and related costs. The regular debt service account is used for all general obligation bond debt service except for refunding bond issues, for which a separate refunding bond trust account has been established.

(43)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) Description of Funds (Continued) Proprietary Fund Internal Service Fund The Internal Service Fund accounts for financing of goods or services provided by one department to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. The District’s Internal Service Fund includes its self-insured health and dental insurance plan for its employees, its early retirement incentive plan, and sick leave. The Internal Service Fund accounts for the financing of services provided by one department to other departments of the District on a cost reimbursement basis.

Fiduciary Fund The District maintains two fiduciary funds. A Private Purpose Trust Fund is used to account for money held by the District in the capacity of trustee or custodian. An Irrevocable Trust Fund has been established for other postemployment benefit payments.

E. Budgeting Budgets presented in this report for comparison to actual amounts are presented in accordance with GAAP. Each June, the School Board adopts an annual budget for the following fiscal year for the General, Food Service, Community Service, Capital Projects and Debt Service Funds. The approved budget is published in summary form in the District's legal newspaper. Reported budget amounts represent the amended budget as adopted by the School Board. Legal budgetary control is at the fund level.

Procedurally, in establishing the budgetary data reflected in these financial statements, the Superintendent submits to the School Board prior to July 1, a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means to finance them. The budget is legally enacted by School Board action. Revisions to budgeted amounts must be approved by the School Board.

Total fund expenditures in excess of the budget require approval of the School Board.

Spending control is established by the amount of expenditures budgeted for the fund, but management control is exercised at line item levels.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Budgeting (Continued) Budgeted amounts include mid-year budget amendments that increased or decreased revenues and expenditures budgets as follows: Revenues General Fund Special Revenue Fund: Community Service Fund Expenditures General Fund Special Revenue Fund: Community Service Fund

Original Budget $ 122,797,421

Amendments $ 116,302

8,459,970

39,375

$ 116,420,935 8,786,835

$

3,106,667 39,375

$

Amended Budget 122,913,723 8,499,345

$

119,527,602 8,826,210

Budget provisions for the Debt Service Fund are set by state law governing required debt service levels.

At the end of each fiscal year, if the General Fund has a net unassigned deficit fund balance, calculated in accordance with the Uniform Financial Accounting and Reporting Standards for Minnesota school districts which excludes certain reserves specified in Minnesota Statutes, exceeding 2.5% of expenditures, a condition referred to as "statutory operating debt" exists. That debt requires retirement through the accumulation of subsequent operating surpluses in accordance with a "special operating plan" approved by the Commissioner of the Department of Education.

F. Cash and Investments Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Cash balances from all funds are combined and invested to the extent available in various securities as authorized by Minnesota Statutes. Earnings from the pooled investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund.

Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker's acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools operated in a manner consistent with the SEC's Rule 2a7 of the Investment Act of 1940 are valued at the pool's share price.

(45)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Accounts Receivable Represents amounts receivable from individuals, firms, and corporations for goods and services furnished by the District. No substantial losses are anticipated from present receivable balances, therefore, no allowance for uncollectible accounts is deemed necessary. The only receivables not expected to be collected within one year are current property taxes receivable.

H. Inventories Inventories are recorded using the consumption method of accounting and consist of purchased food, supplies, and surplus commodities received from the federal government. Food and supply purchases are recorded at invoice cost, computed on a first-in, first-out method, and surplus commodities are stated at standardized cost, as determined by the Department of Agriculture.

I.

Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepayments. Prepaid items are reported using the consumption method and recorded as an expense or expenditure at the time of consumption.

J. Deferred Inflows of Resources In addition to liabilities, the statement of financial position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has two items that occur related to revenue recognition. The first is property taxes levied for subsequent year. As an imposed non-exchange revenue transaction, property taxes received or reported as a receivable before the period for which the property taxes are levied are reported as a deferred inflow of resources in the government-wide financial statements and in the governmental fund financial statements. The second type of deferred inflow of resources is delinquent property taxes. Governmental fund revenues are not recognized until available (collected not later than 60 days after the end of the District’s year-end) under the modified accrual basis of accounting. Delinquent taxes not collected within 60 days after the District’s year-end are considered unavailable and reported as a deferred inflow of resources in the governmental fund financial statements.

K. Property Taxes Property tax levies are established by the School Board in December each year and are certified to the County for collection the following calendar year. In Minnesota, counties act as collection agents for all property taxes and are responsible for spreading all levies over taxable property. Such taxes become a lien on January 1. Taxes are generally due on May 15 and October 15 and counties generally remit taxes to the Districts at periodic

(46)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Property Taxes (Continued) intervals as they are collected. A portion of property taxes levied is paid through state credits which are included in revenue from state sources in the financial statements.

Generally, tax revenue is recognized in the fiscal year ending June 30, following the calendar year in which the tax levy is collectible, while the current calendar year tax levy is recorded as unearned revenue (property taxes levied for subsequent year). The majority of District revenue in the General and Special Revenue Funds is determined annually by statutory funding formulas. The total revenue allowed by these formulas is then allocated between taxes and state aids by the Legislature based on education funding priorities. Changes in this allocation are periodically accompanied by a change in property tax revenue recognition referred to as the “tax shift.”

In accordance with State law, the current tax shift consists of an amount equal to 31% of the District's 2000 Pay 2001 operating referendum levy (frozen at $3,560,480) advance recognized as revenue in fiscal 2014 with no corresponding state aid adjustment.

Starting in fiscal year 2011, the tax shift was expanded to include all other General and Community Service Fund levies. State aids were then reduced by this expanded shift amount, making this portion of the tax shift revenue neutral to school districts. In fiscal year 2014, the shift was reduced to only include the 2000 pay 2001 operating referendum levy. State aids were increased by this reduction in the shift, making it revenue neutral. Certain other portions of the District’s 2013 pay 2014 levy, normally revenue for the 2014-15 fiscal year, are also advance recognized as June 30, 2014, as required by state statute to match revenue with the same fiscal year as the related expenditures.

Taxes that remain unpaid are classified as delinquent taxes receivable. Revenue from these delinquent property taxes that is not collected within 60 days of year-end is not available to finance the operations of the District in the current year. No allowance for uncollectible taxes has been provided as such amounts are not expected to be material.

Current levies of local taxes, less the amount recognized as revenue in the current period, including portions assumed by the State which will be recognized as revenue in the next fiscal year beginning July 1, 2014, are included in the Property Taxes Levied for Subsequent Year account to indicate that, while they are current assets, they will not be recognized as revenue until the following year.

L. Capital Assets Capital assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The District maintains a threshold level of $5,000 or more for capitalizing equipment and $20,000 or more for capitalizing new construction and improvements. The cost of normal maintenance and

(47)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Capital Assets (Continued) repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are recorded in the Government-wide financial statement, but are not reported in the Fund financial statements. Capital assets are depreciated using the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public school purpose by the District, no salvage value is taken into consideration for depreciation purposes.

Useful lives vary from 20 to 50 years for land improvements and buildings, and 5 to 15 years for equipment.

Capital assets not being depreciated include land and construction in progress.

The District does not possess any material amounts of infrastructure capital assets.

Items such as sidewalks and other land improvements are considered to be part of the cost of buildings or other improvable property.

M. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are capitalized and amortized as a component of interest expense over the life of the bonds using over the life of the bonds using the straight-line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

N. Accrued Employee Benefits Vacation Pay In the fund financial statements, vacations payable at year-end for terminated employees or actual vacation taken by year-end are accrued and included in compensated absences payable at June 30. The long-term portion of vacation liabilities is recorded as compensated absences payable in long-term debt in the governmentwide financial statements. A majority of compensated absences are liquidated by the General Fund, which is the District’s main operating fund.

Sick Pay Substantially all District employees are entitled to sick leave at various rates. Unused sick leave may be a factor in the calculation of an employee's severance pay upon retirement.

(48)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Accrued Employee Benefits (Continued) Early Retirement Incentive Amount consists of lump sum early retirement incentive payments payable. Accounting policies for these payments are described in Note 10.

Postemployment Benefits Under the provisions of various employee and union contracts, the District provides a retirement program for certain employees, which includes certain health insurance benefits. The amount to be incurred is limited as specified by contract. The District has funded a portion of its obligation through funding of an irrevocable trust. GASB Statement No. 45 was implemented prospectively, meaning that the net OPEB obligation was set at zero at transition. See Note 9 for further information.

N. Statement of Cash Flows For purposes of the statement of cash flows, the District considers all highly liquid debt instruments with an original maturity from the time of purchase by the District of three months or less to be cash equivalents. The Proprietary Fund’s equity in the governmentwide cash and investment management pool is considered to be cash equivalents.

O. Restricted Assets Restricted assets are cash and cash equivalents whose use is limited by legal requirements such as a bond indenture. Restricted assets are reported only in the Government-wide financial statements.

P. Fund Balance In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent.

These classifications are as follows: Nonspendable – portions of fund balance related to prepaids, inventories, long-term receivables, and corpus on any permanent fund.

Restricted – funds are constrained from outside parties (statute, grantors, bond agreements, etc.).

Committed – funds are established and modified by a resolution approved by the Board of Education.

Assigned – consists of internally imposed constraints. The Board of Education policy authorized the Superintendent and Executive Director of Finance and Business Services to assign fund balances and their intended uses.

Unassigned – is the residual classification for the general fund and also reflects negative residual amounts in other funds.

(49)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance (Continued) When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the District’s policy to use restricted first, then unrestricted fund balance.

When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the District’s policy to use committed first, then assigned, and finally unassigned amounts.

The District formally adopted a fund balance policy for the General Fund. The policy establishes a year-end minimum unassigned fund balance of 5%-7% of the previous year’s expenditures. The General Fund minimum unassigned balance will be increased to compensate for any negative balances in the Food Service Fund and/or Community Service Fund.

Q. Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

The District purchases insurance coverage for such risks from various providers.

There has been no significant reduction in insurance coverage from the previous year in any of the District’s policies. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three fiscal years.

R. Net Position Net position represents the difference between assets, deferred outflows of resources and liabilities, and deferred inflows of resources in the government-wide, proprietary fund, and fiduciary fund financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the Government-wide financial statement when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.

S. Comparative Data The basic financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the District’s financial statements for the year ended June 30, 2013, from which the summarized information was derived.

(50)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 2

STEWARDSHIP AND ACCOUNTABILITY Excess of Expenditures Over Budget Expenditures exceeded budgeted amounts in the following funds at June 30, 2014.

Budget Capital Projects Fund

$

26,516,372

Expenditures $

35,127,971

Excess $

8,611,599

In the Capital Projects Fund, the authority to issue bonds and certificates of participation serves as board approval to incur the capital project expenditures and as such, were not included in the budget.

NOTE 3

DEPOSITS AND INVESTMENTS A. Deposits The District maintains a cash pool that is available for use by all funds. The District maintains an investment pool that is available for use by the general fund, food service fund, community service fund and debt service funds. Investments in the capital projects fund, fiduciary funds and internal service funds, however, are specifically allocated to those funds and not pooled. Each fund type's portion of the cash pool is included in “Cash and Investments” on the statement of net position and the balance sheet.

Custodial credit risk for deposits is the risk that in the event of a bank failure, the School District’s deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk and follows Minnesota Statutes for deposits.

In accordance with applicable Minnesota Statutes, the District maintains deposits at depository banks authorized by the School District's Board.

Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or corporate surety bonds.

Authorized collateral includes treasury bills, notes and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral.

The carrying value and bank balance of the District’s deposits in banks at June 30, 2014 is $12,652,020 and $15,637,446, respectively. These deposits are in accounts that are FDIC insured. At June 30, 2014, the District had insufficient collateral pledged for deposits exceeding federal depository insurance by an amount of $7,064,488.

(51)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) A. Deposits (Continued) At June 30, 2014, the District’s petty cash fund totaled $8,625.

B. Investments The District may also invest idle funds as authorized by Minnesota Statutes, as follows: direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 and receives the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of United States’ banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States’ corporations or their Canadian subsidiaries, of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States’ insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker- dealers.

Repurchase or reverse purchase agreement and securities lending agreements financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers.

At June 30, 2014, the District’s investment balances were as follows: Cash Surrender Value of Life Insurance MN Trust Investment Shares MN Trust TERM Series Minnesota School District Liquid Asset Fund Plus - Liquid Class Minnesota School District Liquid Asset Fund Plus - Max Class Mutual Funds - Fixed Income Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (FHLMC) US Treasuries Total

(52)

$

19,054,238 25,344,054 7,000,000 66,011,315 6,025,220 3,506,187 26,936,113 3,282,363 26,909,559 $ 184,069,049

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The Minnesota School District Liquid Asset Fund Plus and MNTrust are external investment pools and their investments are valued at amortized cost, which approximates fair value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The amortized cost method of valuation values a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of instruments.

Investments Held in Other Postemployment Benefit Trust – The following investments are held within the other postemployment benefit (OPEB) trust at June 30, 2014. The funds are invested in accordance with the investment policy adopted by the District for the OPEB Trust. State Statute does not limit the allowable investments for OPEB trust assets: Money Market Mutual Fund Mutual Funds - Fixed Income Mutual Funds - Equities Total OPEB Trust Investments

$

$

1,035,155 11,130,298 20,810,484 32,975,937

Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The credit ratings for the District’s investments are as follows:

MN Trust Investment Shares MN Trust TERM Series Minnesota School District Liquid Asset Fund Plus - Liquid Class Minnesota School District Liquid Asset Fund Plus - Max Class Mutual Funds - Fixed Income Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (FHLMC) Total

Credit Quality Rating AAAm Not rated AAAm AAAm AAAm AA AA

Amount 25,344,054 7,000,000 66,011,315 6,025,220 3,506,187 26,936,113 3,282,363 $ 138,105,252 $

The credit ratings for the District’s investments held in OPEB Trust are as follows: Credit Quality Rating AAAm Not rated

Money Market Mutual Fund Mutual Funds - Fixed Income Total

$ $

(53)

Amount 1,035,155 11,130,298 12,165,453

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Custodial Credit Risk – For an investment, custodial risk is the risk that, in the event of failure of the counterparty, the District will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The District’s does not have a custodial credit risk policy. The District’s brokers do provide insurance to cover balances held in each investment account. As of June 30, 2014, the investment balances held by brokers were fully covered by insurance for each brokerage firm.

Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District’s investment policies do not limit the maturities of investments; however, when purchasing investments the District considers such things as interest rates and cash flow needs.

Maturities of the District’s investments are as follows:

MN Trust Investment Shares MN Trust TERM Series Minnesota School District Liquid Asset Fund Plus - Liquid Class Minnesota School District Liquid Asset Fund Plus - Max Class Mutual Funds - Fixed Income Federal National Mortgage Association (FNMA) Federal Home Loan Mortgage Corporation (FHLMC) US Treasuries Total

Less than 1 year $ 25,344,054 7,000,000 66,011,315 6,025,220 3,506,187 $ 107,886,776

1-2 years $

$

26,936,113 3,282,363 26,909,559 57,128,035

The average duration of the District’s investments held in OPEB Trust are as follows: Less than 1 Year $ 1,035,155 $ 1,035,155

Money Market Mutual Fund Mutual Funds - Fixed Income Total

1-2 Years $

3-5 Years -

$

$

11,130,298 $ 11,130,298

Concentration of Credit Risk The District places no limit on the amount that the District may invest in any one issuer.

Currently the District had investments in the following issuer which individually comprised more than 5% of total investments: Issuer Federal National Mortgage Association

$

(54)

Amount 26,936,113

Percentage 12%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The deposits and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Position Cash and Investments Held by Trustee - Statement of Net Position Cash and Investments - Statement of Fiduciary Net Position Total Cash and Investments

NOTE 4

$ 195,037,602 1,375,001 33,293,028 $ 229,705,631

CAPITAL ASSETS Capital asset activity for the year ended June 30, 2014 was as follows: Beginning Balance Governmental Activities Capital Assets, Not Being Depreciated: Land Construction in Progress

$

Increases

Ending Balance

Decreases

6,854,939 6,054,072

$ 13,651,000 8,909,611

12,909,011

22,560,611

9,687,055 166,985,033 14,655,966 1,316,572

8,743,115 45,339 18,400

-

9,687,055 175,728,148 14,701,305 1,334,972

192,644,626

8,806,854

-

201,451,480

(5,778,089) (70,316,211) (11,633,832) (934,422)

(389,114) (5,127,878) (1,003,127) (44,370)

-

(6,167,203) (75,444,089) (12,636,959) (978,792)

Total Accumulated Depreciation

(88,662,554)

(6,564,489)

-

(95,227,043)

Total Capital Assets, Being Depreciated, Net

103,982,072

2,242,365

-

106,224,437

$ 116,891,083

$ 24,802,976

Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Land Improvements Buildings and Improvements Equipment and Transportation Vehicles Food Service Equipment Total Capital Assets, Being Depreciated Accumulated Depreciation for: Land Improvements Buildings and Improvements Equipment and Transportation Vehicles Food Service Equipment

Governmental Activities Capital Assets, Net

$

(6,054,072) (6,054,072)

$ (6,054,072)

Depreciation expense was charged to functions of the District as follows: Governmental Activities Administration Regular Instruction Instructional Support Services Sites and Buildings Food Service Total Depreciation Expense, Governmental Activities

(55)

$

18,479 4,135,871 15,641 2,345,286 49,212

$

6,564,489

$

20,505,939 8,909,611 29,415,550

$ 135,639,987

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 5

LONG-TERM LIABILITIES The District has issued general obligation school building bonds to finance the construction of capital facilities or to refinance previous bond issues.

A. Components of Long-Term Debt Principal Outstanding Net

Due

Issue

Interest

Original

Final

Within

Date

Rate

Issue

Maturity

One Year

11/18/2004

3.00% - 5.00%

20,480,000

2/1/2017

5/5/2005

3.50% - 4.00%

6,760,000

2/1/2020

270,000

2,395,000

12/15/2007

4.00% - 5.50%

4,725,000

2/1/2019

455,000

2,425,000

11/1/2008

3.50% - 5.00%

31,470,000

2/1/2016

4,925,000

8,450,000

5/1/2009

2.00% - 3.45%

5,205,000

2/1/2016

1,355,000

2,895,000

4/15/2010

2.00% - 3.00%

5,000,000

2/1/2020

490,000

3,115,000

5/2/2012

2.00% - 3.00%

15,800,000

2/1/2024

-

15,225,000

5/22/2014

1.50% - 3.75%

109,645,000

2/1/2035

-

109,645,000

5/22/2014

3.00% - 4.00%

27,160,000

2/1/2036

-

27,160,000

9,175,000

184,045,000

$

$

Total General Obligation Bonds Bond Premium - Net

Total

1,680,000

$

N/A

Capital Leases Payable

12,735,000

4,628,582

847,110

1,300,465

Certificates of Participation Payable

1,135,000

10,355,000

Early Retirement Incentive Payable

732,916

5,104,201

Sick Leave Payable

519,049

4,436,215

Compensated Absences Payable

490,232

490,232

$

(56)

12,899,307

$

210,359,695

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) B. Minimum Debt Payments Minimum annual principal and interest payments required to retire general obligation bonds and capital lease obligations are as follows:

Year Ending June 30, 2015 2016 2017 2018 2019 2020 - 2024 2025 - 2029 2030 - 2034 2035 - 2036 Total

$

Bonds Payable Principal Interest 9,175,000 $ 5,290,855 9,365,000 6,489,730 9,280,000 6,066,463 2,945,000 5,613,463 3,605,000 5,519,188 26,150,000 25,652,615 46,050,000 19,939,902 59,605,000 10,790,326 17,870,000 895,200

$ 184,045,000

$

86,257,742

Certificates of Participations Payable Principal Interest $ 1,135,000 $ 226,748 725,000 194,448 740,000 178,398 755,000 162,023 775,000 145,184 3,305,000 520,305 2,920,000 146,625 -

Capital Leases Payable Principal Interest $ 847,110 $ 35,492 400,541 16,806 34,869 1,723 17,945 350 -

$ 10,355,000

$

$

1,573,731

1,300,465

$

54,371

C. Description of Long-Term Debt Assets of the Debt Service Fund, together with scheduled future ad valorem tax levies, are dedicated to the retirement of these bonds. The District has authority to levy for all existing general obligation bonds. These levies are subject to reduction if fund balances exceed limitations imposed by Minnesota law.

On November 18, 2004, the District issued $20,480,000 of General Obligation Refunding Bonds, Series 2004B. The proceeds of this issue were used in 2007 to refund, in advance of their stated maturities, the remaining fiscal 2008 through 2017 maturities of the District’s 1997A General Obligation School Building Bonds, totaling $22,450,000.

The proceeds of the 2004B bond issue were placed in an escrow account pending the call dates of the refunded issues and were used to purchase U.S. Government securities. On February 1, 2007, the escrow account was used to call the remaining principal of the 1997A bonds. After the crossover, the District assumed full debt service of the principal and interest payments on the 2004B issue. This “crossover refunding” reduced the District’s total future debt service payments by $2,772,986 and resulted in a present value savings of $1,937,536.

On May 5, 2005, the District issued $6,760,000 of General Obligation Refunding Bonds, Series 2005A. The proceeds of the 2005A bond issue were placed in an escrow account pending the call dates of the refunded issues and were used to purchase U.S. Government securities. On February 1, 2008, the escrow account was used to call the remaining principal of the 2000A General Obligation School Building Bonds. After the crossover, the District assumed full debt service of the principal and interest payments on the 2005A issue. This “crossover refunding” reduced the District’s total future debt service payments by $656,033 and resulted in a present value savings of $474,696.

(57)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) C. Description of Long-Term Debt (Continued) On December 15, 2007, the District issued $4,725,000 of General Obligation Refunding Bonds, Series 2007A. The proceeds of this issue were used on February 1, 2008 to refund, in advance of their stated maturities, the remaining fiscal 2009 through 2019 maturities of the District’s 1999A General Obligation School Building Bonds, totaling $4,975,000. After the crossover, the District assumed full debt service of the principal and interest payments on the 2007A issue. This refunding reduced the District’s total future debt service payments by $226,721 and resulted in a present value savings of $181,735.

On November 1, 2008, the District issued $31,470,000 of General Obligation School Building Refunding Bonds, Series 2008A. The proceeds of this issue, including a premium of $1,323,895, were used on February 1, 2009 to refund, in advance of their stated maturities, the remaining fiscal 2010 through 2016 maturities of the District’s 1998A General Obligation School Building Bonds, totaling $32,740,000. After the call date, the District assumed full debt service of the principal and interest payments on the 2008A issue. This refunding reduced the District’s total future debt service payments by $2,616,130 and resulted in a present value savings of $2,195,447.

In April of 2010, the District issued $5,000,000 of General Obligation Capital Facilities Bonds, Series 2010A. The proceeds of this issue were deposited into a construction fund to finance certain capital projects of the District, including energy conservation, safety and security, and future maintenance improvements at various District sites and facilities.

In May of 2012, the District issued $15,800,000 of General Obligation Alternative Facilities Bonds, Series 2012A. The proceeds of this issue were deposited into a construction fund for future facility maintenance projects included in the ten-year facility plan of the District.

In May of 2014, the District issued $109,645,000 of General Obligation School Building Bonds, Series 2014A. The proceeds of this issue were deposited into a construction fund for the acquisition and betterment of school sites and facilities.

In May of 2014, the District issued $27,160,000 of General Obligation Alternative Facilities Bonds, Series 2014B. The proceeds of this issue were deposited into a construction fund to provide funds for facility maintenance projects included in the tenyear facility plan of the District and approved by the Commissioner of Education.

General Obligation Taxable Other Postemployment Benefit OPEB Bonds The District raised funds for Other Postemployment Benefits through the issuance of General Obligation Taxable Bonds during fiscal year 2009.

The Series 2009A issue was in the amount of $5,205,000 and sold on May 1, 2009. The proceeds from this issue were used to finance the Districts Net OPEB Obligations under GASB Statement No. 45 (see Note 9 for information on the District’s OPEB Obligation).

(58)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) C. Description of Long-Term Debt (Continued) Certificates of Participation Payable In April 2004, the District issued $3,645,000 on Certificates of Participation, Series 2004A. The proceeds of the issue were used for a lease purchase agreement to lease an artificial turf athletic field along with the inflatable dome covering and related equipment.

In April of 2010, the District issued $1,250,000 in Refunding Certificates of Participation, Series 2010B. The proceeds of the issue were deposited in a refunding account and were used to prepay the outstanding principal of a capital lease on July 15, 2010. This refunding reduced the District’s total future debt service payments by $51,082 and resulted in a present value savings of $40,291.

In February of 2013, the District issued $9,980,000 in Certificates of Participation, Series 2013A. The proceeds of the issue were used to finance construction costs for additions to three of the District’s elementary schools and the central services facility.

Capital Leases Payable Capital leases are utilized by the District for financing various projects, including an athletic facility, school addition and remodel, and equipment purchases. Resources for payment of capital leases payable included in long-term debt will be provided primarily by the General Fund. The District had two capital leases outstanding during the year which was for the leasing of a total of 655 Apple iPads. As each individual iPad was below the District’s capitalization threshold of $5,000, there were no capital assets associated with these capital leases as of June 30, 2014.

In April of 2014, the District entered a capital lease for a new Dump Truck for a total of $136,787. Semi-annual payments of $18,296 extend through November 1, 2017, at which point title will transfer to the District. The cost of the leased asset is $136,787 and accumulated depreciation was $17,098.

Arbitrage Rebate Liability The Tax Reform Act of 1986 requires school districts and other governmental entities to pay to the federal government income earned on the proceeds from the issuance of debt in excess of interest costs, pending the expenditure of the borrowed funds. This rebate of interest income (known as arbitrage) applies to governmental debt issued after August 31, 1986.

Certain bond issues of the District are subject to the arbitrage rebate requirements.

However, management does not expect to incur any significant arbitrage rebate liability.

Retirement Benefits Payable Resources for the payment of early retirement incentives will be provided primarily by the Internal Service Fund, which is funded primarily through the General Fund.

Resources for the payment of sick leave payable included in long-term debt will be provided primarily by the Internal Service Fund, which is funded primarily through the General Fund.

(59)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) D. Changes in Long-Term Debt June 30, 2013 Bonds Payable Bond Premium Certificates of Participation Payable Lease Purchase Obligations Early Retirement Incentive Sick Leave Payable Compensated Absences Payable - Net Total

$

$

Net Additions

Retirements

56,070,000 2,095,615

$ 136,805,000 3,023,175

11,655,000 918,096 5,687,137 4,988,036

$

June 30, 2014

8,830,000 490,208

$ 184,045,000 4,628,582

1,235,860 321,179 -

1,300,000 853,491 904,115 551,821

10,355,000 1,300,465 5,104,201 4,436,215

486,374

1,153,291

1,149,433

490,232

81,900,258

$ 142,538,505

14,079,068

$ 210,359,695

$

E. Operating Leases The District is obligated under several operating leases for buildings and office and other equipment. Annual minimum lease payments for the operating leases are as follows:

Year Ending June 30, 2015 2016 2017 2018 2019 Total

Minimum Lease Payments $ 351,342 339,250 278,979 206,384 172,126 $ 1,348,081

Expenditures under the operating leases for the year ended June 30, 2014 were $235,928.

NOTE 6

INTERFUND BALANCES AND TRANSFERS Prior to fiscal year 2004, expenditures for qualified health and safety improvements for Indoor Air Quality (IAQ) improvements were funded through the local health and safety levy.

Starting in fiscal year 2004, these qualified IAQ projects costing $500,000 or more no longer were eligible for funding through the health and safety levy, but were to be funded through the alternative levy process. The alternative levy process allows funding either through direct levy, or through the issuance of bonded debt. The Minnesota Department of Education requires that all alternative funded projects be recorded in the Capital Project Fund, regardless of the method used to obtain the funding sources.

(60)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 6

INTERFUND BALANCES AND TRANSFERS (CONTINUED) The District has levy authority for capital projects and has used those resources to fund the upgrades and operation of the technology infrastructure. Any revenue received in the current levy year that is not spent in the current levy year must be set aside in a reserve account for future use within the requirements of the levy authority. The reserve balance can be negative, with the understanding that future levy authority will offset the deficit. The State’s accounting system (UFARS) allows for those funds to be spent either in the General Fund or the Capital Fund.

Beginning in fiscal year 2007, the District elected to record the capital levy resources in the Capital Fund and transfers the current year levy authority to the Capital Fund.

The District had the following interfund transfers for the year ended June 30, 2014: Transfer to Capital Projects Fund from General Fund for Technology Levy and Alternative Facility Capital Projects

$

Transfer to Community Service Fund from General Fund to break-even the preschool screening program Total Interfund Transfers

7,245,011

8,815 $

7,253,826

The District had the following interfund receivable and payable balances at June 30, 2014, to cover a deficit cash balance in the internal service fund: Due from Other Fund $ 8,072,385 $ 8,072,385

General Fund Internal Service Fund Total

NOTE 7

Due to Other Fund $ $

8,072,385 8,072,385

RESTRICTED FUND BALANCES Certain portions of fund balance are restricted based on state requirements to track special program funding, to provide for funding on certain long-term liabilities, or as required by other outside parties. Any such “restrictions” which have an accumulated deficit rather than a positive balance at June 30 are included in unassigned fund balance in the District’s financial statements in accordance with GAAP. However, a description of these “deficit balance restrictions” is included herein since the District has specific statutory authority to levy taxes for such deficits.

(61)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 7

RESTRICTED FUND BALANCES (CONTINUED) Restricted and nonspendable/assigned fund balances at June 30, 2014 are as follows:

Restricted General Fund: Restricted for Staff Development Restricted for Deferred Maintenance Restricted for Basic Skills Programs Restricted for Health and Safety Restricted for Operating Capital Restricted for Safe Schools Levy Restricted for Dome Escrow Restricted for Workers Compensation Escrow Nonspendable for Prepaid Items Nonspendable for Inventory Committed for Purchase of Land Parcel Assigned for Reemployment Insurance Assigned for One Time Capital Transfer Assigned for Site Carryover Assigned for Q-Compensation Total General Fund

$

Special Revenue Funds: Food Service Fund: Restricted for Other Purposes Nonspendable for Prepaid Items Nonspendable for Inventory Community Service Fund: Restricted for School Readiness Restricted for Community Education Programs Restricted for Early Childhood and Family Education Programs Restricted for Other Purposes Nonspendable for Prepaid Items Total Special Revenue Funds Capital Projects - Building Construction Fund: Restricted for Capital Projects (Technology) Levy Restricted for Alternative Facilities Program Restricted for Building Construction Nonspendable for Prepaid Items Total Capital Projects Building Construction Fund Debt Service Funds: Restricted for Debt Service Restricted for OPEB Debt Service Total Debt Service Fund Total All Funds

$

(62)

578,652 274,277 226,248 82,819 4,042,485 91,766 364,500 814,046 6,474,793

Nonspendable/ Committed/ Assigned $

20,823 119,077 2,889,790 142,108 588,935 872,570 162,717 4,796,020

1,143,424 -

6,339 75,594

14,965 1,319,048

-

6,870 672,824 3,157,131

105 82,038

2,858,275 26,870,808 94,884,756 -

103,151

124,613,839

103,151

4,771,248 133,574 4,904,822

-

139,150,585

$

4,981,209

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 7

RESTRICTED FUND BALANCES (CONTINUED) A. Restricted for Staff Development In accordance with state statute, represents available resources restricted exclusively for staff development.

B. Restricted for Deferred Maintenance Represents available resources restricted for future maintenance expenditures.

C. Restricted for Basic Skills Programs Restricted for basic skills represents amounts available for basic skills uses.

D. Restricted for Health and Safety Restricted for Health and Safety projects in accordance with an approved Health and Safety plan.

E. Restricted for Operating Capital The District levies taxes and receives state aid to be used for the purchase of equipment, books and vehicles and to purchase, rent, improve and repair school facilities as allowed by state statute. The cumulative excess of such revenues over equipment and facilities expenditures is reported as a restriction of fund balance in the General Fund.

F. Restricted for Safe Schools Levy Restricted for funding various crime and drug prevention and education programs.

G. Restricted for Dome Escrow Represents available resources to be used to pay off the Dome lease per the terms of the contract.

H. Restricted for Workers Compensation Escrow Represents available resources to be used for workers compensation.

I.

Restricted for School Readiness Represents accumulated resources available to provide school readiness programming in accordance with funding made available for that purpose.

(63)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 7

RESTRICTED FUND BALANCES (CONTINUED) J. Restricted for Community Education Programs Represents accumulated resources available to provide general community education programming.

K. Restricted for Early Childhood and Family Education Programs Represents accumulated resources available to provide for services for early childhood family education programming.

L. Restricted for Capital Projects (Technology) Levy Represents available resources to be used to fund technology and other capital projects.

M. Restricted for Alternative Facilities Represents available resources to be used for alternative facilities projects.

N. Restricted for Building Construction Represents available resources from the issuance of bonds to be used for funding school building construction.

O. Restricted for Other Purposes Represents amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions of enabling legislation.

NOTE 8

RETIREMENT PLANS Substantially all employees of the District are required by state law to belong to pension plans administered by Teachers’ Retirement Association (TRA) or Public Employees’ Retirement Association (PERA), all of which are administered on a statewide basis.

Disclosures relating to these plans follows: A. Teacher’s Retirement Association (TRA) 1. Plan Description All teachers employed by the District are covered by a cost sharing, multiple employer defined benefit pension plan administered by the State of Minnesota Teachers Retirement Association (TRA). TRA members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. These plans are established and administered in accordance with Minnesota Statutes, Chapters 354 and 356.

(64)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 8

RETIREMENT PLANS (CONTINUED) A. Teacher’s Retirement Association (TRA) (Continued) 1. Plan Description (Continued) TRA provides retirement benefits as well as disability benefits to members and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after three years of credited service. The defined retirement benefits are based on a member’s highest average salary for five consecutive years of allowable service, age, and years of credit at termination of service.

TRA publicly issues a Comprehensive Annual Financial Report (CAFR) presenting financial statements, supplemental information on funding levels, investment performance, and further information on benefits provisions. The report may be accessed at the TRA Web site www.tra.state.mn.us. Alternatively, a copy of the report may be obtained by writing or calling TRA: Teachers Retirement Association 60 Empire Drive Suite 400 St Paul MN 55103-4000 651-296-6449 800-657-3853 2. Funding Policy Minnesota Statutes Chapter 354 sets the rates for the employee and employer contributions. These statutes are established and amended by the state legislature.

Coordinated and Basic Plan members are required to contribute 7.0% and 10.5%, respectively, of their annual covered salary while the District is required to contribute at an actuarially determined rate.

The District is required to contribute the following percentages of annual covered payroll: 7.0% for Coordinated Plan members and 11.0% for Basic Plan members.

The contribution requirements of plan members and the District are established and may be amended by State Statute. The District contributions for the years ended June 30, 2014, 2013 and 2012 were $3,967,652, $3,587,010 and $3,213,557, respectively, equal to the required contributions for each year as set by state statute.

(65)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 8

RETIREMENT PLANS (CONTINUED) B. Public Employees’ Retirement Association (PERA) 1. Plan Description All full-time and certain part-time employees of the District (other than teachers) are covered by a defined benefit plan administered by the Public Employees’ Retirement Association of Minnesota (PERA). PERA administers the General Employees’ Retirement Fund (GERF) which is a cost-sharing, multiple-employer retirement plan.

This plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan.

PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service.

PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF. That report may be obtained on the web at mnpera.org, by writing to PERA: Public Employees’ Retirement Association 60 Empire Drive Suite 200 St Paul MN 55103-2088 651-296-7460 800-652-9026 2. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature.

The District makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 6.25%, respectively, of their annual covered salary in 2011.

The District is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan GERF members and 7.25% for Coordinated Plan members. The District’s contributions to the Public Employees Retirement Fund for the years ended June 30, 2014, 2013 and 2012 were $1,525,370, $1,499,824 and $1,466,180, respectively, equal to the contractually required contributions for each year as set by state statute.

(66)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 8

RETIREMENT PLANS (CONTINUED) C. Defined Contribution Plan The District provides eligible employees future retirement benefits through the District's 403(b) Plan (the Plan). All employees of the District are eligible to participate in the Plan commencing on the date of their employment. Eligible employees may elect to have a percentage of their pay contributed to the Plan. Some employees are eligible to receive a District match of employee contributions up to the qualifying amounts set forth in their respective collective bargaining agreements. Contributions are invested in mutual funds and annuities on a tax deferred basis selected and owned by Plan participants. In the year ended June 30, 2014, the employees and the District contributed $3,454,437 and $2,246,783, respectively, to the plan. Included in the District’s contribution are amounts paid for severance. These contributions in the Plan totaled $861,628 for the year.

NOTE 9

OTHER POSTEMPLOYMENT BENEFITS PAYABLE The District follows GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The District engaged an actuary to determine the District’s liability for post-employment healthcare benefits other than pensions as of July 1, 2012. The District’s previous actuarial report for this liability was as of July 1, 2010.

A. Plan Description The District operates a single-employer retiree benefit plan (the Plan) that provides health and dental insurance to eligible employees and their spouses through the District’s health insurance plan. At the date of the actuarial study, July 1, 2012, there were 1,425 active participants, 175 retired participants and 98 spouses. Benefit and eligibility provisions are established through individual contracts and negotiations between the District and various unions representing District employees and are renegotiated each two-year bargaining period. The Plan does not issue a publicly available financial report.

B. Funding Policy Contribution requirements are also negotiated between the District and union representatives. The District contributes an amount equal to the amount contributed for current-year premiums of active employees for specified coverage levels of eligible retired plan members and their spouses. For fiscal year 2014, the District contributed $2,446,129 to the plan and received a reimbursement of $1,083,853 from the OPEB Trust. Therefore, the Districts net contribution to the plan was $1,362,276. The District intends to fund its contributions in future years from both the Internal Service fund and Other Postemployment Benefits Trust fund.

(67)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 9

OTHER POSTEMPLOYMENT BENEFITS PAYABLE (CONTINUED) C. Annual OPEB Cost and Net OPEB Obligation The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un-funded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually paid from the plan, and changes in the District’s net OPEB obligation.

Annual Required Contribution Interest on Net OPEB Obligation Amortization of Net OPEB Obligation with Interest Annual OPEB Cost Contributions Made Decrease in Net OPEB Obligation Net OPEB Asset - Beginning of Year Net OPEB Asset - End of Year

$

$

1,088,114 (1,200,018) 2,461,170 2,349,266 (1,362,276) 986,990 (20,971,339) (19,984,349)

The District’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the two preceding years are as follows:

Fiscal Year Ended 6/30/2012 6/30/2013 6/30/2014

$

Annual OPEB Cost 1,735,771 1,472,020 2,349,266

Percentage of Annual OPEB Cost Contributed 129.1% 154.8% 58.0%

Net OPEB Obligation (Asset) $ (20,164,200) (20,971,339) (19,984,349)

D. Funded Status and Funding Progress As of July 1, 2012, the most recent actuarial valuation date, the District’s unfunded actuarial accrued liability (UAAL) was ($2,714,660) resulting in an unfunded actuarial asset. The annual payroll for active employees covered by the plan in the actuarial valuation was $70,229,176 for a ratio of UAAL to covered payroll of 0.0%.

(68)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 9

OTHER POSTEMPLOYMENT BENEFITS PAYABLE (CONTINUED) D. Funded Status and Funding Progress (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

E. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the July 1, 2012 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 6.0% discount rate which is a blended rate of the expected long-term investment returns on plan assets and on the employer’s own investments calculated based on the funded level of the plan at the valuation date.

The initial healthcare trend rate was 8.0%, reduced by decrements to an ultimate rate of 5% after six years. The UAAL is being amortized as a level dollar amount on a closed basis. The remaining amortization period at June 30, 2014 was not to exceed 26 years.

(69)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 10 OTHER PENSION BENEFITS PAYABLE The District engaged an actuary to determine the District’s liability for its supplemental pension plan in accordance with GASB Statement No. 27, as of July 1, 2012. The District’s previous actuarial report for its supplemental pension plan was as of July 1, 2010.

A. Plan Description The District provides a defined benefit supplemental pension benefit to certain individuals and contract groups. Benefit and eligibility provisions are established through individual contracts and negotiations between the District and various unions representing District employees and are renegotiated each two-year bargaining period.

At the date of the actuarial study, July 1, 2012, there were 700 active employees who were eligible to receive benefits and no retirees receiving benefits under the plan. The pension benefit ranges from 80 days times the hourly rate to half the annual salary at the time of retirement. Payments are made as either a lump sum payment or two annual installments.

B. Funding Policy Payments under the plan are made on a pay-as-you go basis. There are no invested plan assets accumulated for payment of future benefits. The operating funds are used for funding of all pension/retirement benefits which are accounted for in the Internal Service Fund. The District makes all contributions.

C. Annual Pension Cost and Net Pension Obligation The District’s annual pension cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 27. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the District’s annual pension cost for the year, the amount actually paid from the plan, and changes in the District’s net pension obligation.

Annual Required Contribution Interest on Net Pension Obligation Amortization of Net Pension Obligation with Interest Annual Pension Cost Contributions Made Decrease in Net OPEB Obligation Net Pension (Asset) - Beginning of Year Net Pension Obligation - End of Year

(70)

$

$

412,931 255,921 (347,673) 321,179 (904,115) (582,936) 5,687,137 5,104,201

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 10 OTHER PENSION BENEFITS PAYABLE (CONTINUED) C. Annual Pension Cost and Net Pension Obligation (Continued) The District’s annual pension cost, the percentage of the annual pension cost contributed to the plan, and the net pension obligation for 2014 and the two preceding years was: Fiscal Year Ended 6/30/2012 6/30/2013 6/30/2014

$

Annual Pension Cost 679,794 319,160 321,179

Percentage of Annual Pension Cost Contributed 133.8% 269.6% 281.5%

Net Pension Obligation (Asset) $ 6,228,549 5,687,137 5,104,201

D. Funded Status and Funding Progress As of July 1, 2012, the most recent actuarial valuation date, the District’s unfunded actuarial accrued liability (UAAL) was $6,859,551. The annual payroll for active employees covered by the plan in the actuarial valuation was $34,573,090 for a ratio of UAAL to covered payroll of 19.8%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

E. Actuarial Methods and Assumptions The annual required contribution for the current year was determined as part of the July 1, 2012 actuarial valuation using the projected unit actuarial cost method. The actuarial assumptions included a 4.5% discount rate, which is a blended rate of the expected long-term investment returns on plan assets and on the employer’s own investments calculated based on the funded level of the plan at the valuation date and projected salary increases at 3%.

The actuarial methods and assumptions include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The unfunded liability amortization was fully recognized in FY10 and there is no remaining amortization period.

(71)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 11 FLEXIBLE BENEFIT PLAN The District has a flexible benefit plan which is classified as a “cafeteria plan” under Section 125 of the Internal Revenue Code. All employee groups of the District are eligible if and when the collective bargaining agreement or contract with their group allows eligibility.

Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to the plan for health care and dependent care benefits.

Before the beginning of the plan year, which is July 1 to June 30, each participant designates a total amount of pre-tax dollars to be contributed to the plan during the year. At June 30, the District is contingently liable for claims against the total amount of participants’ annual contributions to the plan, whether or not such contributions have been made.

The District is self-funded for its group health and dental plans. Payments of insurance premiums (health and dental) are made by the District directly to the designated Internal Service Fund account. These payments are made on a monthly basis and are accounted for in the General Fund.

Amounts withheld for medical reimbursement and dependent care are deposited into the District’s general checking account on a per pay date basis. All assets of the plan are held in the General Fund and are administered by an employee of the District. Payments are made by the District to participating employees upon submitting a request for reimbursement of eligible expenses incurred by the participant. The medical reimbursement and dependent care activity is included in the financial statements in the General Fund.

All plan property and income attributable to that property is solely the property of the District, subject to the claims of the District’s general creditors. Participants’ rights under the plan are equal to those of general creditors of the District in an amount equal to eligible health care and dependent care expenses incurred by the participants. The District believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.

NOTE 12 HEALTH AND DENTAL SELF-INSURANCE PLAN The District maintains an Internal Service Fund to account for and finance a self-insurance program for health and dental benefits provided to current employees of the District.

Accordingly, the District has not purchased outside insurance for the risks of losses to which it is exposed for amounts under its stop-loss limit of $225,000 at which point reinsurance coverage is available. The District also has aggregate stop-loss coverage in place which limits the District’s liability to 125% of expected claims for the current year. Claims have not exceeded the stop-loss limit in the past three years. District management believes it is more economical to manage its risks internally and set aside assets for claim settlement. The Internal Service Fund currently services all claims and risk of loss to which the District is exposed for health and dental expenses.

(72)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 12 HEALTH AND DENTAL SELF-INSURANCE PLAN (CONTINUED) Participants in the program make premium payments to the fund based on the insurance premium. The excess amount received above current year claims is used to establish a reserve for future claims. At June 30, 2014, there is a reserve of $7,051,439 for health and dental claims reflected as unrestricted net position.

District liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR) based on estimates provided by plan administrators and recommendations from insurance plan consultants. Because actual claim liabilities depend on such complex factors as inflation, changes in legal doctrines, and damage awards, the process used in computing a claim liability does not necessarily result in an exact amount. Claims liabilities are re-evaluated periodically to take into consideration recently settled claims, the frequency of claims, and other economic and social factors.

There is a possibility for loss if claims are in excess of the premiums collected. The District does not believe this occurrence would have a material financial effect on the District. The District held $7,955,603 in cash and investments at June 30, 2014, for payment of health and dental claims.

Changes in the balances of claim liabilities during fiscal years 2014 and 2013 were as follows: 2014 Beginning of Fiscal Year Liability for Unpaid Claims

$

Current Year Claims, Changes in Estimates and Other Charges Current Year Claims Paid Balance at Fiscal Year-End of Liability for Unpaid Claims

$

1,647,178

2013 $

1,356,540

21,079,868

14,455,787

(20,555,356)

(14,165,149)

2,171,690

$

1,647,178

NOTE 13 COMMITMENTS AND CONTINGENCIES A. Federal and State Programs Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable fund. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this time although the District expects such amounts, if any, to be immaterial.

(73)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014

NOTE 13 COMMITMENTS AND CONTINGENCIES (CONTINUED) B. Contingencies The District is subject to legal proceedings and claims which arise in the ordinary course of business. Management believes the resolution of these matters will not have a material impact on the District.

C. Construction Commitments The District has committed to construction projects at June 30, 2014 of $9,799,737.

(74)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS FOR POSTEMPLOYMENT BENEFIT PLANS JUNE 30, 2014

SCHEDULES OF FUNDING PROGRESS FOR:

Actuarial Valuation Date 7/1/2008 7/1/2010 7/1/2012

Actuarial Valuation Date 7/1/2008 7/1/2010 7/1/2012

$

Actuarial Value of Assets (a) 21,572,977 22,675,048 27,296,084

$

Actuarial Value of Assets (a) $

-

$

Other Postemployment Benefits Payable Actuarial Accrued Liability Unfunded Funded (AAL) AAL Ratio (b) (b-a) (a/b) 26,709,809 $ 5,136,832 80.8 % 25,599,062 2,924,014 88.6 24,581,424 (2,714,660) 111.0

Other Pension Benefits Payable Actuarial Accrued Unfunded Liability AAL (AAL) (UAAL) (b) (b-a) 6,609,084 $ 6,609,084 6,723,035 6,723,035 6,859,551 6,859,551

Funded Ratio (a/b) -% -

$

$

SCHEDULE OF EMPLOYER CONTRIBUTIONS FOR: Other Postemployment Benefits Annual Year Ended Required Percentage June 30 Contribution Contributed 2009 $ 2,144,138 1090% 2011 1,767,026 115% 2013 1,202,301 190%

Year Ended June 30 2009 2010 2011 2012 2013 2014

Supplemental Pension Annual Required Contribution $ 403,370 403,370 389,178 389,178 412,931 412,931

(75)

Percentage Contributed 201% 132% 126% 234% 208% 219%

Covered Payroll (c ) 59,083,289 63,777,191 70,229,176

UAAL as a Percentage of Covered Payroll ((b-a)/c) 8.7 % 4.6 (3.9)

Covered Payroll (c ) 33,933,751 33,642,486 34,573,090

UAAL as a Percentage of Covered Payroll ((b-a)/c) 19.5 % 20.0 19.8

SUPPLEMENTAL INFORMATION

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

2014 ASSETS Cash and Investments Cash and Investments Held by Trustee Receivables: Current Taxes Delinquent Taxes Accounts and Interest Receivable Due from Other Funds Due from Other Minnesota School Districts Due from Minnesota Department of Education Due from Federal through the Minnesota Department of Education Due from Federal Government Received Directly Due from Other Governmental Units Inventory Prepaid Items Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Due to Other Minnesota School Districts Due to Other Governmental Units Property Tax Shift Adjustment Unearned Revenue Total Liabilities

$

17,016,679 1,606,221 17,885,866 363,095 139,415 319,967 12,294,211 878,130 256,228 81,598 72,365

$

63,270,806

$

50,913,775

$

306,569 1,964,264 4,191,604 593,075 24,303 148,782 7,228,597

$

261,073 1,933,320 3,064,388 637,609 46,317 50,602 372,114 6,365,423

Fund Balance: Nonspendable: Inventory Prepaid Items Restricted for: Staff Development Cooperative Revenue Deferred Maintenance Basic Skills Programs Health and Safety Operating Capital Safe Schools Levy Dome Escrow Projects Funded by Certificates of Participation Worker's Compensation Escrow Committed for: Purchase of Land Parcel Assigned for: Re-Employment Insurance One-Time Capital Transfer Site Carryover Q-Compensation Unassigned Total Fund Balance $

(76)

$

17,700,743 260,044 131,156 8,072,385 183,498 7,179,126 1,419,936 36,923 182,719 119,077 20,823

Deferred Inflows of Resources: Property Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Total Deferred Inflows of Resources

Total Liabilities, Deferred Inflows of Resources, and Fund Balance

26,643,874 1,320,502

2013

33,554,997 290,218 33,845,215

18,824,368 263,919 19,088,287

119,077 20,823

81,598 72,365

578,652 274,277 226,248 82,819 4,042,485 91,766 364,500 814,046

828,462 250,000 274,277 666,428 138,106 5,408,794 116,244 364,500 220,244 814,046

2,889,790

2,889,790

142,108 588,935 872,570 162,717 10,926,181 22,196,994

178,491 588,935 819,591 272,097 11,476,097 25,460,065

63,270,806

$

50,913,775

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Final Budget REVENUES Local Sources: Property Taxes Earnings on Investments Other State Sources Federal Sources Total Revenues EXPENDITURES Current: Administration: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Administration District Support Services: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total District Support Services Elementary and Secondary Regular Instruction: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Elementary and Secondary Regular Instruction

$

22,336,731 20,000 2,434,778 94,840,559 3,281,655 122,913,723

2013 Over (Under) Final Budget

Actual Amounts

$

22,479,230 15,632 2,766,696 94,355,252 3,151,094 122,767,904

$

142,499 (4,368) 331,918 (485,307) (130,561) (145,819)

Actual Amounts

$

36,090,719 19,525 3,346,111 78,596,478 3,190,552 121,243,385

2,773,506 821,399 158,799 63,390 8,200 54,500 3,879,794

2,750,229 803,533 157,740 50,402 5,699 47,659 3,815,262

(23,277) (17,866) (1,059) (12,988) (2,501) (6,841) (64,532)

2,825,544 902,454 126,079 49,225 33,976 39,188 3,976,466

2,271,633 596,084 959,537 46,945 90,372 11,825

2,255,685 739,316 642,409 140,373 308,253 34,377

(15,948) 143,232 (317,128) 93,428 217,881 22,552

2,225,760 699,553 838,884 170,735 8,126 31,746

3,976,396

4,120,413

144,017

3,974,804

40,939,168 11,344,403 2,885,740 2,739,516 311,118 63,405

40,267,772 11,745,546 3,287,631 1,821,703 236,596 38,512

(671,396) 401,143 401,891 (917,813) (74,522) (24,893)

39,557,465 11,243,644 3,130,935 1,779,430 458,153 37,892

58,283,350

57,397,760

(885,590)

56,207,519

(77)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (CONTINUED) YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Final Budget EXPENDITURES (Continued) Current (Continued): Vocational Education Instruction: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Vocational Education Instruction Special Education Instruction: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Special Education Instruction Instructional Support Services: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Instructional Support Services Pupil Support Services: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Pupil Support Services

$

1,343,622 434,391 693,510 29,859 41,297 34,000

2013 Over (Under) Final Budget

Actual Amounts

$

1,345,761 206,949 690,109 23,519 19,735 16,426

$

2,139 (227,442) (3,401) (6,340) (21,562) (17,574)

Actual Amounts

$

1,326,647 419,365 775,704 59,471 15,918 15,507

2,576,679

2,302,499

(274,180)

2,612,612

11,065,172 3,432,188 1,170,340 585,550 6,000 253,800

10,967,151 3,609,248 1,394,250 62,136 6,870 110,964

(98,021) 177,060 223,910 (523,414) 870 (142,836)

10,746,289 3,474,856 1,444,438 95,992 32,222 128,976

16,513,050

16,150,619

(362,431)

15,922,773

5,899,734 2,247,299 1,205,667 1,042,718 3,750 42,950

6,415,518 2,326,331 379,009 210,122 21,805 28,080

515,784 79,032 (826,658) (832,596) 18,055 (14,870)

5,932,807 1,784,436 512,801 177,021 25,921

10,442,118

9,380,865

(1,061,253)

8,432,986

2,725,905 774,457 7,750,855 310,140 46,880 140

2,596,286 813,493 7,515,867 256,139 51,424 90

(129,619) 39,036 (234,988) (54,001) 4,544 (50)

2,736,415 853,182 7,612,395 285,160 4,517 130

11,608,377

11,233,299

(375,078)

11,491,799

(78)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL (CONTINUED) YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Final Budget EXPENDITURES (Continued) Current (Continued): Sites and Buildings: Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Sites and Buildings

$

4,385,064 1,546,043 2,880,297 803,150 691,000 31,600 10,337,154

2013 Over (Under) Final Budget

Actual Amounts

$

4,037,356 1,484,167 3,165,210 913,231 3,206,504 18,113 12,824,581

$

Actual Amounts

(347,708) (61,876) 284,913 110,081 2,515,504 (13,487) 2,487,427

$

3,975,399 1,383,862 3,076,809 961,785 848,940 31,925 10,278,720

Fiscal and Other Fixed Cost Programs: Purchased Services

331,378

355,757

Debt Service: Principal Interest and Fiscal Charges Total Debt Service

1,300,000 279,307 1,579,307

1,300,000 279,306 1,579,306

(1) (1)

515,000 15,761 530,761

119,527,602

119,160,361

(367,241)

113,747,018

3,386,121

3,607,543

221,422

7,496,367

5,000 (7,319,991)

246,425 136,787 (7,253,826)

(5,000) 246,425 136,787 66,165

2,900 2,889,790 5,794 378,866 (7,673,940)

(7,314,991)

(6,870,614)

444,377

(4,396,590)

(3,928,870)

(3,263,071)

665,799

3,099,777

Total Expenditures Excess of Revenues Over Expenditures

OTHER FINANCING SOURCES (USES) Proceeds from Sale of Equipment Proceeds from Sale of Real Property Insurance Recovery Proceeds Proceeds from Capital Leases Certificates of Participation Proceeds Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance

$

FUND BALANCE Beginning of Year

24,379

$

318,578

25,460,065

End of Year

$

(79)

22,196,994

22,360,288 $

25,460,065

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FOOD SERVICE SPECIAL REVENUE FUND BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

2014 ASSETS Cash and Investments Receivables: Accounts and Interest Receivable Due from Federal through the Minnesota Department of Education Inventory Prepaid Items Total Assets

LIABILITIES AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Accounts and Contracts Payable Unearned Revenue Total Liabilities

$

1,547,981 1,152 24,402 71,998 2,641

$

1,706,472

$

1,648,174

$

913 233,121 247,081 481,115

$

285 61,110 229,918 291,313

$

(80)

$

544 75,594 6,339

Fund Balance: Nonspendable: Inventory Prepaid Items Restricted for: Other Purposes Total Fund Balance Total Liabilities and Fund Balance

1,623,995

2013

75,594 6,339

71,998 2,641

1,143,424 1,225,357

1,282,222 1,356,861

1,706,472

$

1,648,174

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FOOD SERVICE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Final Budget REVENUES Local Sources: Other - Primarily Meal Sales State Sources Federal Sources

$

Total Revenues

4,071,903 136,200 1,080,163

2013 Over (Under) Final Budget

Actual Amounts

$

3,806,157 139,398 1,251,762

$

(265,746) 3,198 171,599

Actual Amounts

$

3,884,424 137,585 1,203,292

5,288,266

5,197,317

(90,949)

5,225,301

EXPENDITURES Current: Salaries Employee Benefits Purchased Services Supplies and Materials Other Expenditures Capital Outlay

1,700,025 568,122 529,950 2,618,050 15,300 120,000

1,635,800 536,525 569,991 2,473,230 11,320 101,955

(64,225) (31,597) 40,041 (144,820) (3,980) (18,045)

1,569,728 579,944 497,025 2,427,549 11,035 120,036

Total Expenditures

5,551,447

5,328,821

(222,626)

5,205,317

Net Change in Fund Balance

$

(263,181)

(131,504)

FUND BALANCE Beginning of Year

$

131,677

19,984

1,356,861

End of Year

$

(81)

1,225,357

1,336,877 $

1,356,861

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 COMMUNITY SERVICE SPECIAL REVENUE FUND BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

2014 ASSETS Cash and Investments Receivables: Current Taxes Delinquent Taxes Accounts and Interest Receivable Due from Other Minnesota School Districts Due from Minnesota Department of Education Prepaid Items

$

2013

3,773,003

$

743,011 10,811 163,912 236,672 36,703 105

Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Due to Other Governmental Units Unearned Revenue Total Liabilities

4,964,217

$

4,127,469

$

173,816 24,000 325,567 1,193 867,647 1,392,223

$

160,654 11,260 263,607 667 1,204,373 1,640,561

Fund Balance: Nonspendable: Prepaid Items Restricted for: Community Education Programs Early Childhood and Family Education Programs School Readiness Other Purposes Total Fund Balance

$

(82)

764,405 14,584 178,722 184,361 50,783 7,308

$

Deferred Inflows of Resources: Property Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Total Deferred Inflows of Resources

Total Liabilities, Deferred Inflows of Resources, and Fund Balance

2,927,306

1,546,100 12,082 1,558,182

787,509 10,648 798,157

105

7,308

1,319,048 6,870 14,965 672,824 2,013,812

1,023,557 7,508 650,378 1,688,751

4,964,217

$

4,127,469

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 COMMUNITY SERVICE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014

Final Budget REVENUES Local Sources: Property Taxes Other - Primarily Tuition and Fees State Sources

$

Total Revenues

787,509 6,509,071 1,202,765

2013 Over (Under) Final Budget

Actual Amounts

$

781,025 6,856,799 1,185,418

$

(6,484) 347,728 (17,347)

Actual Amounts

$ 1,463,583 6,380,401 383,259

8,499,345

8,823,242

323,897

8,227,243

EXPENDITURES Current: Salaries Employee Benefits Purchased Services Supplies and Materials Other Expenditures Capital Outlay

5,461,380 1,643,765 1,202,246 382,904 23,605 112,310

5,153,261 1,555,619 1,404,900 363,108 14,740 15,368

(308,119) (88,146) 202,654 (19,796) (8,865) (96,942)

4,995,980 1,557,892 838,666 428,903 19,831 62,216

Total Expenditures

8,826,210

8,506,996

(319,214)

7,903,488

Excess (Deficiency) of Revenues Over (Under) Expenditures

(326,865)

OTHER FINANCING SOURCES Insurance Recovery Proceeds Transfer In

75,000 75,000

Total Other Financing Sources Net Change in Fund Balance

$

316,246

(251,865)

$

(83)

323,755

8,815

(66,185)

4,067 25,000

8,815

(66,185)

29,067

576,926

352,822

325,061

FUND BALANCE Beginning of Year End of Year

643,111

$

1,688,751

1,335,929

2,013,812

$ 1,688,751

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

2014 ASSETS Cash and Investments Cash and Investments in Escrow Other Receivables: Accounts and Interest Receivable Prepaid Items

$

127,945,145 54,499

2013 $

86,615 103,151

Total Assets LIABILITIES AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Unearned Revenue Total Liabilities

128,189,410

$

17,210,951

$

4,399 13,360 3,358,950 95,711 3,472,420

$

7,437 7,040 2,716,375 110,680 2,841,532

$

(84)

9,597 195,050

$

Fund Balance: Nonspendable: Prepaid Items Restricted for: Capital Projects Levy Alternative Facilities Program Projects Funded by Certificates of Participation Building Construction Total Fund Balance Total Liabilities and Fund Balance

10,305,085 6,701,219

103,151

195,050

2,858,275 26,870,808 94,884,756 124,716,990

2,403,043 7,663,807 4,107,519 14,369,419

128,189,410

$

17,210,951

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014 Final Budgeted Amounts REVENUES Local Sources: Earnings on Investments Other Total Revenues EXPENDITURES Current: Salaries Employee Benefits Purchased Services Supplies and Materials Other Expenditures Bond Sale Costs Capital Outlay Total Expenditures Deficiency of Revenues Under Expenditures OTHER FINANCING SOURCES Insurance Recovery Proceeds Proceeds from Issuance of Certificates of Participation Face Amount of Bonds Issued Proceeds from Capital Leases Bond Premium Transfer In Total Other Financing Sources Net Change in Fund Balance

$

2013 Over (Under) Final Budget

Actual Amounts

-

$

22,215 11,830 34,045

$

22,215 11,830 34,045

Actual Amounts

$

10,273 10,193 20,466

1,504,960 437,937 932,494 1,374,108 1,800 22,265,073

1,452,003 485,958 1,587,935 925,874 52,217 1,101,989 29,521,995

(52,957) 48,021 655,441 (448,234) 50,417 1,101,989 7,256,922

1,424,598 480,804 2,112,024 901,416 2,653 15,010,864

26,516,372

35,127,971

8,611,599

19,932,359

(26,516,372)

(35,093,926)

(8,577,554)

(19,911,893)

-

5,187

133,781,825 3,023,175 7,244,991 144,049,991

136,805,000 1,099,073 287,226 7,245,011 145,441,497

$ 117,533,619

110,347,571

Fund Balance - Beginning

5,187

$

-

3,023,175 1,099,073 (2,735,949) 20 1,391,506

9,815,200 1,383,350 7,648,940 18,847,490

(7,186,048)

(1,064,403)

14,369,419

Fund Balance - Ending

$ 124,716,990

(85)

15,433,822 $

14,369,419

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DEBT SERVICE FUND BALANCE SHEET JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

Regular Debt Service ASSETS Cash and Investments Receivables: Current Taxes Delinquent Taxes Due from Minnesota Department of Education Total Assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE Liabilities: Accounts and Contracts Payable Deferred Inflows of Resources: Property Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Total Deferred Inflows of Resources Fund Balance: Restricted for: Debt Service Other Post-Employment Benefits Debt Service Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balance

$

9,989,981

Other PostEmployment Benefits $

4,818,297 73,869 55

Totals 2014

927,120

10,917,101

$

7,549,418

733,451 7,388 7

5,551,748 81,257 62

5,607,393 112,491 182

$ 16,550,168

$ 13,269,484

$

$

$ 14,882,202

$

1,667,966

$

$

-

2,275

$

2013

2,275

-

10,026,176 82,503 10,108,679

1,526,203 8,189 1,534,392

11,552,379 90,692 11,643,071

11,239,477 81,714 11,321,191

4,771,248 4,771,248

133,574 133,574

4,771,248 133,574 4,904,822

1,868,258 80,035 1,948,293

1,667,966

$ 16,550,168

$ 13,269,484

$ 14,882,202

(86)

$

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

2014 Actual Other PostEmployment Benefits

Total Actual Amounts

9,987,056 548

$ 1,204,460 67

$ 11,191,516 615

11,240,078

9,987,604

1,204,527

8,830,000 2,136,626 5,000

7,805,000 2,011,088 4,475

10,971,626

Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Bond Premium

Final Budgeted Amounts REVENUES Local Sources: Property Tax State Sources

$ 11,239,478 600

Total Revenues EXPENDITURES Debt Service: Bond Principal Bond Interest Paying Agent Fees and Other Total Expenditures

Net Change in Fund Balance

$

Regular Debt Service

$

$ 11,027,719 1,337

11,192,131

(47,947)

11,029,056

1,025,000 125,538 450

8,830,000 2,136,626 4,925

(75)

9,065,000 2,383,490 5,834

9,820,563

1,150,988

10,971,551

(75)

11,454,324

268,452

167,041

53,539

220,580

(47,872)

2,735,000

2,735,949

-

2,735,949

3,003,452

2,902,990

53,539

2,956,529

1,868,258

80,035

1,948,293

$

4,771,248

(87)

$

133,574

$

4,904,822

$

Actual Amounts

(47,962) 15

Fund Balance - Beginning Fund Balance - Ending

2013 Over (Under) Final Budget

(425,268)

949 $

-

(46,923)

(425,268) 2,373,561 $

1,948,293

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 INTERNAL SERVICE FUND COMBINING STATEMENT OF NET POSITION JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2013)

SelfInsurance Accounts ASSETS Current Assets: Cash and Cash Equivalents Investments Interest Receivable Accounts Receivable Prepaid Items Total Assets LIABILITIES AND NET POSITION Liabilities: Current Liabilities: Accounts Payable Claims Payable for Health and Dental Benefits Due to Other Funds Total Current Liabilities

$

Net Position: Unrestricted Total Liabilities and Net Position

Totals 2014

$

5,080,246 3,026,250 56,462 -

$

$ 17,413,169

$

8,162,958

$ 25,576,127

$ 19,900,061

$

$

302,552 302,552

$

$

117,655 2,171,690 8,072,385 10,361,730

5,080,246 19,054,238 270,113 1,168,430 3,100

2013

16,027,988 213,651 1,168,430 3,100

Long-Term Liabilities: Liability for Other Pension Benefits Payable Retirement Benefits Payable Total Long-Term Liabilities Total Liabilities

Early Retirement Accounts

420,207 2,171,690 8,072,385 10,664,282

$

574,940 17,930,208 261,901 1,129,912 3,100

111,423 1,647,178 1,758,601

-

5,104,201 4,436,215 9,540,416

5,104,201 4,436,215 9,540,416

5,687,137 4,988,036 10,675,173

10,361,730

9,842,968

20,204,698

12,433,774

7,051,439

(1,680,010)

5,371,429

7,466,287

$ 25,576,127

$ 19,900,061

$ 17,413,169

(88)

$

8,162,958

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 INTERNAL SERVICE FUND COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGE IN NET POSITION YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

SelfInsurance Accounts OPERATING REVENUES Charges for Services: Health Insurance Premiums Dental Insurance Premiums Assessments to Other Funds

$ 16,496,523 1,470,155 -

Total Operating Revenues

Early Retirement Accounts

$

Totals 2014

-

$

16,496,523 1,470,155 -

2013

$

12,338,781 1,190,752 437,424

17,966,678

-

17,966,678

13,966,957

19,672,393 1,410,607 -

107,678

19,672,393 1,410,607 107,678

13,365,328 1,084,334 1,262,317

General Administration Fees

3,100

-

3,100

6,125

Total Operating Expenses

21,086,100

107,678

21,193,778

15,718,104

(3,119,422)

(107,678)

(3,227,100)

(1,751,147)

144,191

1,132,242

36,513

(2,094,858)

(1,009,839)

7,466,287

8,476,126

OPERATING EXPENSES Health Insurance and Claim Payments Dental Insurance and Claim Payments Early Retirement Incentive and Sick Leave Benefits

Operating Loss NONOPERATING REVENUE Earnings on Investments

988,051

Change in Net Position

(2,131,371)

Net Position - Beginning

9,182,810

Net Position - Ending

$

7,051,439

(89)

(1,716,523) $

(1,680,010)

$

5,371,429

741,308

$

7,466,287

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 INTERNAL SERVICE FUND COMBINING SCHEDULE OF CASH FLOWS YEAR ENDED JUNE 30, 2014 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2013)

SelfInsurance Accounts CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Interfund Services Provided Payments for Medical Fees and Insurance Claims Payments for Retirement Benefits

Early Retirement Accounts

$ 17,928,160 (20,555,356) -

Net Cash Used by Operating Activities

(2,627,196)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfer from Other Funds

8,072,385

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

5,445,189

Cash and Cash Equivalents - Beginning CASH AND CASH EQUIVALENTS - ENDING RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities: Increase in Accounts Receivable Increase in Prepaid Items Increase in Accounts Payable Increase in Claims Payable Decrease in Liability for Early Retirement Incentives Increase (Decrease) in Sick Leave Payable

$

$

-

(3,119,422)

(90)

(939,883)

$ 17,928,160 (20,555,356) (939,883)

$ 13,926,090 (14,161,929) (1,483,991)

(939,883)

(3,567,079)

(1,719,830)

8,072,385

$

$

5,080,246

(107,678)

2,294,770

$

5,080,246

$

(3,227,100)

$ (1,751,147)

(38,518) 308,784 524,512 (582,936) (551,821)

(40,867) (3,100) 6,320 290,638 (541,412) 319,738

(832,205) (939,883)

(1,719,830)

574,940

302,552 (582,936) (551,821) $

-

4,505,306

6,020,129

492,226 (2,627,196)

2013

(939,883)

(38,518) 6,232 524,512 $

2014

-

(5,445,189)

Total Adjustments Net Cash Used by Operating Activities

$

Totals

(339,979) $

(3,567,079)

$

574,940

31,317 $ (1,719,830)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 UNIFORM FINANCIAL ACCOUNTING AND REPORTING STANDARDS COMPLIANCE TABLE JUNE 30, 2014

01 GENERAL FUND Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted/Reserved: 403 Staff Development 405 Deferred Maintenance 406 Health & Safety 407 Capital Project Levy 408 Cooperative Rev. 409 Deferred Maintenance 414 Operating Debt 416 Levy Reduction 417 Taconite Building Maint 423 Certain Teacher Programs 424 Operating Capital 426 $25 Taconite 427 Disabled Accessibility 428 Learning & Development 434 Area Learning Center 435 Contracted Alt. Programs 436 St. Approved Alt. Prog.

438 Gifted & Talented 441 Basic Skills 443 Telecomm. Access Cost 446 First Grade Preparedness 449 Safe Schools Levy 450 Pre-Kindergarten 451 QZAB Payments 452 OPEB Liab. Not in Trust 453 Unfunded Sev & Retirement Levy Restricted: 464 Restricted Fund Balance Committed: 418 Committed for Separation 461 Committed Fund Balance Assigned: 462 Assigned Fund Balance Unassigned: 422 Unassigned Fund Balance 02 FOOD SERVICE Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted: 452 OPEB Liab Not In Trust 464 Restricted Fund Balance Unassigned: 463 Unassigned Fund Balance 04 COMMUNITY SERVICE Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted/Reserved: 426 $25 Taconite 431 Community Education 432 E.C.F.E. 444 School Readiness 447 Adult Basic Education 452 OPEB Liab. Not in Trust Restricted: 464 Restricted Fund Balance Unassigned: 463 Unassigned Fund Balance

Audit

UFARS

$ 123,014,329 119,160,361

578,652 274,277 82,819 4,042,485 226,248 91,766 -

$ 123,014,327 119,160,364 139,899 578,651 274,277 82,818 4,042,485 226,248 91,765 -

1,178,546

1,178,546

-

2,889,790

2,889,790

-

1,766,330

1,766,330

-

139,900

Audit-UFARS $

Audit

2 (3) 1 1 1 1 -

10,926,181

10,926,184

(3)

5,197,317 5,328,821

5,197,316 5,328,821

1 -

81,933

81,933

-

1,143,424

1,143,424

-

-

-

-

8,823,242 8,506,996

8,823,242 8,506,996

-

105

105

-

1,319,048 6,870 14,965 -

1,319,048 6,870 14,965 -

-

672,824 -

672,825 -

06 BUILDING CONSTRUCTION Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted/Reserved: 407 Capital Projects Levy 409 Alternative Fac. Program 413 Project Funded by COP Restricted: 464 Restricted Fund Balance Unassigned: 463 Unassigned Fund Balance 07 DEBT SERVICE Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted/Reserved: 425 Bond Refundings 451 QZAB Payments Restricted: 464 Restricted Fund Balance Unassigned: 463 Unassigned Fund Balance 08 TRUST Total Revenues Total Expenditures Net Position: 422 Net Position 20 INTERNAL SERVICE Total Revenues Total Expenditures Net Position: 422 Net Position 25 OPEB REVOCABLE TRUST Total Revenues Total Expenditures Net Position: 422 Net Position 45 OPEB IRREVOCABLE TRUST Total Revenues Total Expenditures Net Position: 422 Net Position 47 OPEB DEBT SERVICE Total Revenues Total Expenditures Nonspendable: 460 Nonspendable Fund Balance Restricted: 425 Bond Refundings 464 Restricted Fund Balance Unassigned: 463 Unassigned Fund Balance FY11 OPERATING CAPITAL TRANSFER Per Pupil Amount

$

39,232 35,180,298

(91)

UFARS

Audit-UFARS

39,236 35,180,295

$

(4) 3

103,151

103,151

-

2,858,275 26,870,808 -

2,858,275 26,870,808 -

-

94,884,756

94,884,756

-

-

-

-

9,987,604 9,768,236

9,987,604 9,768,236

-

-

-

-

-

-

-

4,771,248

4,771,248

-

-

-

-

8,052 12,700

8,052 12,700

-

317,144

317,144

-

19,098,920 21,193,778

19,098,919 21,193,778

1 -

5,371,429

5,371,432

(3)

-

-

-

-

-

-

6,024,134 2,542,918

6,024,134 2,542,919

(1)

32,958,937

32,958,937

-

1,204,527 1,150,988

1,204,527 1,150,988

-

-

-

-

133,574

133,574

-

-

-

-

-

AMCPU

-

Total Transfer

-

(1) -

$

STATISTICAL SECTION (UNAUDITED) This part of the District’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District’s overall financial health.

Financial Trends: Pages 92-99 These schedules contain trend data to help the reader understand how the District’s financial performance and well-being have changed over time.

Revenue Capacity: Pages 100-105 These schedules contain information to help the reader assess the District’s property tax revenue.

Debt Capacity: Pages 106-109 These schedules present information to help the ready assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt in the future.

Demographic and Economic Information: Pages 110-111 These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial activities take place.

Operating Information: Pages 112-114 These schedules contain staffing, key operating statistics comparisons and capital asset data to help the reader understand how the information in the District’s financial report relates to the services the District provides and the activities it performs.

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2005 Governmental Activities Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position

2006

2007

2008

$

15,983,913 6,638,231 7,791,470

$

19,216,157 8,901,995 7,415,600

$

24,069,854 9,178,609 11,221,417

$

28,308,647 13,177,338 12,071,035

$

30,413,614

$

35,533,752

$

44,469,880

$

53,557,020

(92)

Fiscal Year 2009

2010

2011

$

32,025,036 10,005,749 55,548,928

$

39,131,007 10,578,725 47,147,457

$

46,774,439 14,051,983 43,582,774

$

97,579,713

$

96,857,189

$ 104,409,196

2012 $

41,301,936 26,816,481 44,210,849

$ 112,329,266

(93)

2013 $

46,152,372 27,560,100 45,130,907

$ 118,843,379

2014 $

60,689,911 12,624,943 40,787,379

$ 114,102,233

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2005 Expenses Governmental Activities: Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Interest on Long-Term Debt Unallocated Depreciation Total Governmental Activities Expenses Program Revenues Governmental Activities: Charges for Services: Administration Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Food Service Community Service Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Net (Expense)/Revenue Governmental Activities General Revenues and Other Changes in Net Position Governmental Activities: Property Taxes: General Purpose Community Service Debt Service Unrestricted Grants and Contributions Unrestricted Investment Earnings Gain on Sale of Capital Assets Miscellaneous Total Governmental Activities Change in Net Position Net Position - Beginning Net Position - Ending

2006

3,529,662 3,853,703 41,370,121 738,649 12,692,016 7,110,721 7,675,585 11,514,298 354,942 4,298,997 6,086,765 5,219,563 106,602

2007

$

4,070,775 4,125,666 46,266,103 706,799 13,359,698 7,934,974 8,382,286 13,511,896 401,698 4,323,381 6,516,455 4,515,835 128,798

2008

$

3,891,206 3,414,628 41,454,565 759,636 11,566,284 6,914,492 6,849,023 8,567,122 323,624 3,943,319 5,707,625 6,234,581 71,252

$

$

$

99,697,357

$ 104,551,624

$ 114,244,364

$ 120,033,820

$

1,828,244 1,432 80,479 336,788 3,345,505 4,325,955 9,759,360 2,229,574

$

1,632,357 1,678 21,463 340,908 3,599,336 4,815,752 10,570,586 846,206

$

1,058,116 886 410,631 3,694,472 4,446,759 11,125,983 1,926,042

$

150 1,121,653 987 28,773 416,716 3,777,099 4,606,255 12,474,395 -

$

21,907,337

$

21,828,286

$

22,662,889

$

22,426,028

(91,581,475)

$

(97,607,792)

$ (77,790,020)

$ (82,723,338)

$

$

16,607,592 1,029,509 10,106,353 50,753,694 2,773,620 1,592,505 82,863,273

$

12,564,471 592,589 10,200,825 60,024,649 3,473,080 987,862 87,843,476

$

25,849,960 1,129,124 9,431,790 58,435,400 3,755,010 22,495 1,893,824 $ 100,517,603

$

5,073,253 25,340,361 30,413,614

$

5,120,138 30,413,614 35,533,752

$

$

$ $ $

Note: The District implemented GASB 27 and 45 in fiscal year 2009.

(94)

$

$

$

8,936,128 35,533,752 44,469,880

3,904,514 4,283,576 48,509,858 1,578,963 14,193,664 8,378,363 9,553,368 14,048,098 297,974 4,623,125 6,909,158 3,583,373 169,786

28,113,965 1,300,614 9,560,963 62,375,991 3,514,255 1,829,144 $ 106,694,932

$

9,087,140 44,469,880 53,557,020

Fiscal Year 2009

2010

2011

2012

2013

2014

$

3,681,537 (2,757,790) 28,743,335 1,432,049 9,526,178 7,519,905 8,619,361 16,069,340 356,785 4,635,568 6,846,110 3,631,315 312,890

$

3,899,459 5,589,021 61,534,331 2,508,024 16,275,461 8,390,114 10,325,723 11,072,137 259,189 4,814,452 7,955,136 2,424,106 519,485

$

3,818,998 4,241,347 58,588,094 2,456,472 15,742,242 9,018,954 10,860,440 12,226,696 313,591 4,978,695 7,945,819 2,166,878 765,710

$

3,903,810 3,889,519 61,370,368 2,244,616 15,647,448 9,285,367 10,890,255 12,087,843 296,088 5,140,315 7,960,867 2,170,792 936,783

$

3,995,998 4,154,320 59,732,311 2,629,151 16,037,522 8,464,618 11,528,889 19,492,550 318,578 5,193,226 7,913,272 2,059,956 -

$

3,833,741 4,924,827 64,030,267 2,376,614 16,664,813 9,446,640 11,606,924 23,108,226 355,757 5,367,185 8,343,413 4,117,943 -

$

88,616,583

$

135,566,638

$

133,123,936

$

135,824,071

$

141,520,391

$

154,176,350

$

53,339 1,073,360 243 39,046 464,982 3,863,351 5,257,945 13,267,583 -

$

164,606 930,553 211 552 98 70,359 436,390 3,797,912 5,737,747 20,286,746 -

$

194,753 1,002,420 3,969 6,606 120 89,244 487,538 3,747,616 6,034,944 14,898,308 -

$

151,210 1,002,847 9,404 316 88,946 471,737 3,860,359 5,865,887 17,204,917 -

$

275,959 1,080,264 2,270 4,441 2,485 14,543 461,493 3,884,424 6,137,955 15,850,856 252,929

$

202,982 1,021,619 1,324 560 18,905 28,369 662,870 3,806,157 6,529,492 15,171,555 346,713

$

24,019,849

$

31,425,174

$

26,465,518

$

28,655,623

$

27,967,619

$

27,790,546

$

(64,596,734)

$ (104,141,464)

$ (106,658,418)

$ (107,168,448)

$ (113,552,772)

$ (126,385,804)

30,249,790 1,084,553 9,327,038 64,742,972 1,574,398 1,640,676 $ 108,619,427

$

$

48,100,101 2,051,929 10,086,556 51,844,745 692,894 1,434,200 114,210,425

$

34,707,170 1,420,146 10,416,814 66,145,035 855,344 1,544,009 115,088,518

$

35,975,717 1,458,919 10,992,579 67,408,720 771,106 1,692,690 1,767,154 120,066,885

$

$

$

7,552,007 96,857,189 104,409,196

$

7,920,070 104,409,196 112,329,266

$

6,514,113 112,329,266 118,843,379

$

$

$

44,022,693 53,557,020 97,579,713

$

$

32,471,599 1,182,981 9,539,122 58,622,111 344,100 1,259,027 103,418,940 (722,524) 97,579,713 96,857,189

$ $ $

$

$

(95)

$

$

22,503,184 781,857.00 11,203,441.00 84,572,800.00 1,170,089.00 1,413,287.00 $ 121,644,658

$

(4,741,146) 118,843,379 114,102,233

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2005 General Fund Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Reserved Reported in: Community Service Fund Capital Project Funds Debt Service Funds Unreserved Reported in: Food Service Fund Community Service Fund Capital Project Funds Debt Service Funds Nonspendable Restricted Reported in: Food Service Fund Community Service Fund Capital Project Fund Debt Service Funds Unassigned - Capital Project Fund Total All Other Governmental Funds Total All Funds

$

$

$

2006

1,694,444 6,286,941 7,981,385

$

667,749 30,504,975 -

$

$

995,145 11,277 555,535 1,383,749 -

$

34,118,430

$

42,099,815

Note: The District implemented GASB 54 in 2011, only 2010 amounts were restated.

(96)

2007

7,992,026 6,981,529 14,973,555

$

923,717 29,961,070

$

$

1,095,034 20,322 (266,957) 2,129,929 -

2008

7,232,452 9,404,081 16,636,533

$

1,042,410 6,844,131

$

$

7,251,294 11,800,550 19,051,844

986,349 49,371 -

721,326 (8,817) (1,036,240) 2,095,533 -

974,255 62,259 (1,449,664) 2,261,514 -

$

2,884,084

$

21,935,928

$

33,863,115

$

9,658,343

$

48,836,670

$

26,294,876

Fiscal Year 2009 $

$

$

2010

7,788,448 13,507,742 21,296,190

$

618,249 318,188 -

$

$

1,262,205 305,572 (616,143) 2,067,838 -

$

3,955,909

$

25,252,099

2011

1,063,623 6,551,165 3,583,266 11,572,351 22,770,405

$

-

$

$

449,177

2012

1,129,123 7,103,320 1,983,458 11,525,345 21,741,246

$

-

$

$

839,243

$

1,437,962 940,094 5,756,834 1,853,801 10,437,868

$

$

33,208,273

$

1,306,291 1,284,584 2,540,916 2,003,402 (29,889) 7,944,547 29,685,793

2013

599,557 7,276,447 2,270,381 12,213,903 22,360,288

$

-

$

$

2014

153,963 9,081,101 2,889,790 1,859,114 11,476,097 25,460,065

$

-

$

$

139,900 6,474,793 2,889,790 1,766,330 10,926,181 22,196,994

-

198,197

276,997

185,189

$

1,257,690 1,331,479 15,319,262 2,373,561 20,480,189

$

1,282,222 1,681,443 14,174,369 1,948,293 19,363,324

$

1,143,424 2,013,707 124,613,839 4,904,822 132,860,981

$

42,840,477

$

44,823,389

$

155,057,975

(97)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2005 Revenues Local Sources: Property Taxes Earnings on Investments Other State Sources Federal Sources Total Revenues

$

Expenditures Current: Administration District Support Services Regular Instruction Vocational Education Instruction Special Education Instruction Instructional Support Services Pupil Support Services Sites and Buildings Fiscal and Other Fixed Cost Programs Food Service Community Service Capital Outlay Debt Service: Principal Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from Sale of Equipment Proceeds from Sale of Real Property Insurance Recovery Proceeds Sale of Bond Proceeds Bond Premium Certificates of Participation Proceeds Proceeds from Capital Leases Payment to Refunded Bond Escrow Agent Transfer In Transfer Out Total Other Financing Sources (Uses) Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures

$

27,744,090 1,599,448 11,300,232 60,089,894 2,652,734 103,386,398

2006

$

23,323,963 2,038,666 11,397,781 68,788,226 2,653,215 108,201,851

2007

$

36,290,042 1,809,962 11,481,193 68,884,821 2,625,099 121,091,117

2008

$

38,897,378 1,612,598 11,842,484 72,183,854 2,666,532 127,202,846

3,098,903 3,414,628 38,555,114 751,596 11,566,284 5,675,656 6,849,023 7,272,144 323,624 3,800,959 5,628,552 7,224,824

3,212,666 3,670,312 39,982,100 705,369 12,636,066 6,197,509 7,619,936 7,337,607 354,942 4,002,138 6,042,097 5,346,692

3,400,679 4,019,941 44,808,912 682,739 13,315,819 7,003,890 8,347,354 7,823,675 401,698 4,188,001 6,419,017 9,664,538

3,669,319 4,164,663 45,950,162 1,537,278 14,147,637 8,143,070 9,483,248 8,261,489 297,974 4,458,978 6,827,679 9,345,219

5,285,000 6,449,175 105,895,482

5,510,000 5,847,809 108,465,243

5,655,000 5,483,744 121,215,007

5,990,000 4,073,025 126,349,741

(2,509,084)

(263,392)

(123,890)

1,381 98,392 29,628,316 (27,275,000) 328,204 (328,204) 2,453,089

5,344 1,576 224,178 542,000 (542,000) 231,098

31,096 1,000 (22,450,000) 5,814,349 (5,814,349) (22,417,904)

(32,294)

$ (22,541,794)

11.0%

10.0%

(55,995)

11.9%

(98)

$

853,105 6,724 225,932 4,725,000 1,540,291 (11,710,000) 6,000,020 (6,000,020) (5,212,053) $

(4,358,948)

8.6%

Fiscal Year 2009

$

$

2010

40,487,682 798,831 12,327,794 74,289,718 3,777,782 131,681,807

$

2011

43,114,189 111,659 12,394,109 67,557,932 11,350,924 134,528,813

$

2012

60,312,279 37,490 13,008,028 60,586,004 6,150,431 140,094,232

$

2013

46,494,356 18,759 12,893,963 78,173,924 5,170,995 142,751,997

$

2014

48,582,021 29,798 13,621,129 79,118,659 4,393,844 145,745,451

$

34,451,771 37,847 13,441,482 95,680,683 4,402,856 148,014,639

3,577,748 4,178,363 50,863,997 1,988,651 13,844,731 8,048,957 9,663,416 8,719,673 356,785 4,513,548 7,559,453 10,317,570

3,810,046 3,406,672 49,261,911 2,312,353 14,855,969 8,170,600 10,004,783 9,179,456 259,189 4,694,729 7,700,868 9,425,093

3,792,268 3,725,315 50,484,858 2,400,776 15,382,312 8,953,839 10,779,639 9,050,432 313,591 4,835,626 7,865,844 15,193,084

3,882,175 3,725,817 54,146,054 2,224,383 15,542,974 9,253,668 10,753,896 9,023,841 296,088 5,073,799 7,863,889 12,957,206

3,942,490 3,966,678 55,749,366 2,596,694 15,890,551 8,432,986 11,487,282 9,429,780 318,578 5,085,281 7,841,272 21,516,463

3,809,563 3,812,160 57,161,164 2,282,764 16,143,749 9,359,060 11,181,875 9,618,077 355,757 5,226,866 8,491,628 38,000,191

6,395,000 3,609,618 133,637,510

6,790,000 3,104,257 132,975,926

8,165,000 2,683,970 143,626,554

8,695,000 2,582,338 146,021,128

9,580,000 2,405,085 158,242,506

10,130,000 3,522,846 179,095,700

(1,955,703)

1,552,887

(3,532,322)

(3,269,131)

(12,497,055)

(31,081,061)

12,979 37,998,895 (32,740,000) 7,250,201 (7,250,201) 5,271,874

2,997 349 5,110,123 1,289,818 7,109,370 (7,109,370) 6,403,287

9,842 9,228,572 (9,228,572) 9,842

5,370 105,785 16,312,660 7,264,007 (7,264,007) 16,423,815

2,900 2,889,790 9,861 214,066 9,980,000 1,383,350 7,673,940 (7,673,940) 14,479,967

251,612 136,805,000 3,023,175 1,235,860 7,253,826 (7,253,826) 141,315,647

3,316,171

8.1%

$

7,956,174

8.0%

$

(3,522,480)

$

13,154,684

8.4%

8.5%

(99)

$

1,982,912

8.8%

$ 110,234,586

9.7%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NET TAX CAPACITY AND VALUATION OF ALL TAXABLE PROPERTY (UNAUDITED)

Fiscal Year 2005

Taxable Market Value

Net Tax Capacity $

80,068,560

$

Percent Tax Capacity of Estimated Market Value

7,219,051,900

1.1%

2006

88,850,251

8,019,537,100

1.1%

2007

99,870,308

8,926,736,715

1.1%

2008

111,198,084

9,932,205,237

1.1%

2009

121,330,023

10,802,607,580

1.1%

2010

123,328,768

11,023,202,400

1.1%

2011

118,450,131

10,679,667,300

1.1%

2012

111,127,795

9,963,416,806

1.1%

2013

109,891,883

9,821,945,763

1.1%

2014

109,307,508

9,628,799,946

1.1%

Source: Hennepin County Taxpayer Services Division.

Note: Per discussions with Hennepin County Taxpayer Services Division, reliable information for the breakdown of assessed and actual residential, commercial, and industrial property values is not available.

(100)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ISD No. 284 22.150 20.706 21.893 20.245 19.668 20.406 23.311 24.034 25.325 24.571

Corcoran

Maple Grove

28.870 27.966 29.275 30.703 30.213 30.677 32.995 37.041 39.617 49.743

Medicine Lake

Medina

Minnetonka

33.241 30.677 30.272 30.352 29.483 31.422 33.845 36.890 39.640 42.463

41.820 38.580 35.252 30.138 30.580 33.835 34.945 38.677 36.548 37.508

17.164 16.339 16.105 15.351 15.434 16.636 17.241 18.977 21.342 25.501

29.878 28.810 28.597 28.416 27.567 29.247 30.686 33.705 35.595 38.194

830,990 943,652 1,000,843 1,461,662 1,620,222 1,913,091 2,117,238 2,255,318 2,523,404 2,699,999

193,898 200,169 228,764 307,718 324,044 355,924 414,242 368,215 380,891 350,000

1,329,584 1,515,562 1,687,135 2,461,746 2,632,860 2,936,372 3,083,803 3,037,776 3,047,129 3,149,999

4,819,742 4,661,068 4,661,068 6,115,901 6,521,392 7,207,459 7,364,305 7,548,413 7,951,103 8,399,998

COUNTY AUDITOR'S GROSS SPREAD LEVIES: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

27,699,665 28,595,508 28,595,508 38,464,789 40,505,542 44,490,486 46,026,905 46,026,905 47,611,393 49,999,989

83,099 85,787 85,787 115,394 121,517 133,471 138,081 138,081 142,834 100,000

Source: Hennepin County Taxpayer Services Division Note: Above tax rates are used to levy City, County, and School District taxes.

(101)

Orono

Plymouth

Wayzata

Hennepin County

Special Districts

17.637 16.252 15.316 14.269 13.580 13.183 13.677 14.991 16.283 17.815

23.922 23.132 23.197 23.751 23.344 24.854 25.495 27.490 28.716 30.114

25.558 24.240 22.224 20.365 20.308 19.415 20.358 23.032 24.274 26.311

47.324 44.172 41.016 39.110 38.571 40.413 42.640 45.840 48.231 49.959

7.488 7.382 6.448 7.310 8.801 7.154 8.138 9.172 9.523 8.858

360,096 371,742 400,337 500,042 526,572 622,867 598,350 598,350 571,337 550,000

16,758,298 17,271,687 16,899,945 22,424,972 23,493,214 25,137,125 25,636,986 25,544,933 26,138,655 27,499,994

3,323,960 3,545,843 3,631,629 5,077,352 5,265,720 6,184,178 6,673,901 6,535,821 6,856,041 7,249,998

495,716,030 515,379,632 535,872,783 565,245,672 602,274,631 644,324,515 676,166,665 669,404,998 668,415,787 681,253,275

72,632,494 79,410,990 83,443,805 95,522,916 104,571,196 99,640,161 112,216,451 117,993,952 116,862,928 127,112,287

(102)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)

Fiscal Year 2014 Taxpayer Ridgedale Joint Venture Medica Health Plans KBS II 601 Tower LLC Talcott III Atria LLC WHQ LLC GS Park Place LLC RREEF America Reit II Corp TCA RE LLC Plymouth Corp Center DE LLC Pinnacle/Vicksburg Village

Type of Property Commercial Commercial Commercial Commercial Commercial Apartment Apartment Commercial Commercial Apartment

Total Total District Net Tax Capacity

Net Tax Capacity

Percent of Total Tax Capacity

$

2,459,250 1,272,722 957,650 837,938 834,624 640,625 623,875 499,250 485,848 457,913

2.25% 1.16% 0.88% 0.77% 0.76% 0.59% 0.57% 0.46% 0.44% 0.42%

$

9,069,695

8.30%

$ 109,307,508

Source: Fiscal Year 2014 information was obtained from the Official Statement associated with the District's 2014A General Obligation School Building Bonds (prepared by Ehlers).

Fiscal Year 2005 Taxpayer Ridgedale Joint Venture Carlson Real Estate Co. EQR - Flatlands LLC Teachers Insurance & Annuity Assoc.

3033 Campus - VEF III LLC Vicksburg Village Bay Holdings, LLC The May Department Stores BH Management Services US Retail Partners, LLC

Type of Property Shopping Mall Commercial/Residential Apartment Commercial Commercial Apartment Commercial Commercial Apartment Commercial

Total Total District Net Tax Capacity

Source: Hennepin County Department of Property Tax and Public Records

(103)

Net Tax Capacity

Percent of Total Tax Capacity

$

2,134,950 1,917,600 902,125 605,790 420,670 375,750 339,450 282,270 272,800 264,930

2.67% 2.39% 1.13% 0.76% 0.53% 0.47% 0.42% 0.35% 0.34% 0.33%

$

7,516,335

9.39%

$

80,068,560

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED)

Collected within the Fiscal Year of Levy Current Percentage Tax of Collection Levy

Taxes Levied for the Fiscal Year Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Operating Tax Levy $

16,418,919 17,275,503 26,443,935 27,420,960 29,632,526 33,210,723 34,249,743 33,446,688 34,756,436 35,598,996

Debt Tax Levy $

9,950,429 9,914,045 9,234,056 9,272,228 9,006,222 9,225,481 9,384,423 10,028,155 10,497,128 10,703,945

Total Tax Levy $

26,369,348 27,189,548 35,677,991 36,693,188 38,638,748 42,436,204 43,634,166 43,474,843 45,253,564 46,302,941

Source: Minnesota Department Of Education School Tax Reports; Hennepin County School Tax Settlement Reports.

(104)

$

26,231,532 27,037,906 35,063,395 35,999,531 37,876,588 41,763,183 42,837,704 42,661,189 44,975,922 46,128,987

99.5% 99.4% 98.3% 98.1% 98.0% 98.4% 98.2% 98.1% 99.4% 99.6%

Total Collections to Date Total Percentage Tax of Collection Levy

Collections in Subsequent Years $

137,816 151,642 614,596 685,574 752,522 649,934 814,414 788,543 186,265 N/A

$

26,369,348 27,189,548 35,677,991 36,685,105 38,629,110 42,413,117 43,652,118 43,449,732 45,162,187 46,128,987

Outstanding Delinquent Taxes

100.0% 100.0% 100.0% 100.0% 100.0% 98.4% 98.2% 99.9% 99.8% 99.6%

$

(105)

8,083 9,638 23,087 (17,952) 25,111 91,378 173,954

Percentage of Levy Outstanding 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 0.2% 0.4%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Notes:

Governmental Activities General Certificates Obligation of Bonds Participation $ 116,375,000 110,865,000 82,760,000 69,785,000 67,325,000 65,626,000 57,525,000 65,135,000 56,070,000 184,045,000

$

3,645,000 3,325,000 3,000,000 2,665,000 2,320,000 3,215,000 2,695,000 2,190,000 11,655,000 10,355,000

Total Primary Government $ 120,020,000 114,190,000 85,760,000 72,450,000 69,645,000 68,841,000 60,220,000 67,325,000 67,725,000 194,400,000

Percentage of Personal Income -% -

Per Capita $

2,102 2,000 1,497 1,265 1,193 1,159 1,014 1,122 1,119 3,150

Percentage of Estimated Actual Value Taxable Property 1.66% 1.42% 1.60% 1.60% 1.60% 1.60% 0.56% 0.68% 0.69% 2.02%

Details regarding the District's outstanding debt can be found in the notes to the financial statements.

Personal income data for district residents only was not available therefore percentage of personal income cannot be shown.

(106)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2014 (UNAUDITED)

OVERLAPPING DEBT (1): Fiscal Year 2014 Taxing Unit Hennepin County

Adjusted Taxable Net Tax Capacity $

District's % In District (4)

Total G.O. Debt

1,367,504,155

8.13%

6,279,877

4.12%

5,058,000

208,531

City of Maple Grove

76,538,750

8.36%

88,520,000

7,404,371

City of Medina

13,451,198

49.93%

12,920,000

6,451,240

City of Minnetonka

81,856,776

22.46%

7,105,000

1,595,428

City of Orono

26,396,831

4.39%

6,625,000

290,624

City of Plymouth

97,197,488

63.86%

12,425,000

7,934,001

7,240,000

7,193,250

City of Corcoran

City of Wayzata Metropolitan Council

15,551,537

99.35%

2,999,061,916

3.71%

993,329,908

11.19%

Three Rivers Park District

$

Proportionate Share

735,600,000 (2) $

59,814,661

196,680,000 (3)

7,292,381

55,755,000

6,241,441

Total Overlapping Debt

104,425,928

DIRECT DEBT: Wayzata Public Schools ISD No. 284

109,307,508

100.00%

184,045,000

TOTAL DIRECT AND OVERLAPPING DEBT

184,045,000.00 $

288,470,928

(1) Only those taxing jurisdictions with general obligation debt outstanding are included in this section. Does not include non-general obligation debt, self supporting general obligation revenue debt, short-term general obligation debt, or general obligation tax/aid anticipation certificates of indebtedness. Does not include the Hennepin County Regional Railroad Authority's $42,595,000 Limited Tax Refunding Bonds, Series 2010A, dated March 17, 2010, currently outstanding in the principal amount of $40,505,000.

(2) Hennepin County also has General Obligation Solid Waste Revenue Bonds outstanding which are payable entirely from the County's solid waste enterprise fund; General Obligation Bonds (Century Plaza Debt) which are expected to be paid from building rental fees from County departments and non-County tenants; and General Obligation Ice Arena Revenue which are expected to be paid from building rental payments from Augsburg College. These issues have not been included in the overlapping debt or debt ratios.

(3) The above debt includes all outstanding general obligation debt supported by taxes of the Metropolitan Council. The Council also has general obligation sewer revenue, wastewater revenue, and radio revenue bonds , general obligation grant anticipation notes, and lease obligations outstanding all of which are supported entirely by revenues and have not been included not been included in the overlapping debt or debt ratios.

(4) This % is determined using the tax capacity and tax rate of the corresponding taxing unit which is provided by the Hennepin County Taxpayer Service Department.

Source: Fiscal Year 2014 information was obtained from the Official Statement associated with the District's 2014A General Obligation School Building Bonds (prepared by Ehlers).

(107)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (DOLLARS IN THOUSANDS) (UNAUDITED)

Net Bonded Debt (1)

Fiscal Year 2005

$

84,486,276

% of Net Debt to Net Tax Capacity

Net Tax Capacity (1) $

Estimated Population (1)

80,068,560

105.52%

55,855

Net Debt per Capita $

1,513

2006

78,774,001

88,850,251

88.66%

57,106

1,379

2007

73,820,339

99,870,308

73.92%

57,293

1,288

2008

67,523,488

111,198,084

60.72%

57,293

1,179

2009

65,365,601

121,330,023

53.87%

58,355

1,120

2010

63,683,257

123,328,768

51.64%

59,417

1,072

2011

55,537,890

118,450,131

46.89%

59,417

935

2012

62,801,663

111,127,795

56.51%

60,017

1,046

2013

54,201,743

109,891,883

49.32%

60,517

896

2014

179,273,752

109,307,508

164.01%

61,717

2,905

Notes:

(1) Net Bonded Debt, Net Tax Capacity and Estimated Population data is taken from other schedules within this Statistical Section.

(2) The Indicated Market Value is calculated by dividing the taxable market value ($9,628,799,946) by the sales ratio (98.2%).

(3) The legal debt limit for a school district in Minnesota is 15% of the indicated market value of all taxable property within the school district.

(4) The legal debt margin is calculated by subtracting outstanding net bonded debt from the legal debt limit.

(108)

Percent Bonded Debt to Debt Limit

Indicated Market Value (2)

Legal Debt Limit (3)

Legal Debt Margin (4)

$ 8,553,379,028

$ 1,283,006,854

$ 1,198,520,578

6.59%

9,335,898,836

1,400,384,825

1,321,610,824

5.63%

10,167,126,099

1,525,068,915

1,451,248,576

4.84%

11,364,079,356

1,704,611,903

1,637,088,415

3.96%

11,767,546,383

1,765,131,957

1,699,766,356

3.70%

11,458,630,353

1,718,794,553

1,655,111,296

3.71%

11,124,653,438

1,668,698,016

1,613,160,126

3.33%

10,156,388,181

1,523,458,227

1,460,656,564

4.12%

9,792,568,059

1,468,885,209

1,414,683,466

3.69%

9,805,295,261

1,470,794,289

1,291,520,537

12.19%

(109)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Population

Personal Income

Per Capita Personal Income

57,106 57,106 57,293 57,293 58,355 59,417 59,417 60,017 60,517 61,717

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

School Enrollment 9,710 9,825 9,969 10,007 10,196 10,280 10,511 10,544 10,657 10,708

Source:

Enrollment information from district records.

Notes:

Population data based on information from property developers and cities, methodology approved by State Demographer's Office.

Unemployment rate is for Hennepin County as of June and is obtained from Minnesota Department of Employment and Economic Development.

N/A = Not available.

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Unemployment Rate 3.9 3.7 4.3 5.1 8.3 6.7 7.0 5.7 5.1 4.5

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)

Fiscal Year 2014 Employer

Product/Service

Carlson Companies Cargill Inc. United Health Group ISD No. 284 - Wayzata Public Schools Medica Health TCF National Bank Aimia St. Jude Medical US Foods Nilfisk-Advance, Inc.

Hospitality Industry - Corporate Headquarters Agribusiness Medical/Health Insurance Services Public Education Insurance Financial Institution Marketing Consultants Surgical and Medical Equipment Manufacturing Wholesale Groceries Floor Machines Manufacturer

Approximate Number of Employees 4,500 4,400 2,000 1,505 1,300 1,000 1,000 800 500 450

Source: Fiscal Year 2014 information was obtained from the Official Statement associated with the District's 2014A General Obligation School Building Bonds (prepared by Ehlers).

Fiscal Year 2005

Employer Carlson Companies Boston Scientific Cargill Inc. Advance Circuits, Inc. ISD No. 284 - Wayzata Public Schools Allina Health Systems DatacCard Corporation Value Rx Osmonics Nilfisk-Advance

Product/Service Hospitality Industry - Corporate Headquarters Disposable Medical Products Corporate Headquarters - Agribusiness Printed Circuits Public Education Insurance Embossing Machines Health Services Water Purification Services Floor and Carpet Cleaning Equipment

Approximate Number of Employees 4,500 3,000 2,000 1,200 1,097 850 817 620 600 550

Source: Survey of individual employers, March, 2005. Information obtained from the Official Statement associated with the District's 2005A General Obligation School Building Refunding Bonds.

Note: Total employment for the area served by Wayzata Public Schools is not available and, therefore, a percentage of total employment for each of the employers listed above is not included.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE JUNE 30, 2014 AND 2013 (UNAUDITED)

2014 Administration Principals Associate Principals Unaffiliated Total Administration

2013 11.0 8.0 35.4 54.4

11.0 8.0 37.2 56.2

Instructional Administrators High School Classroom Teachers Middle School Classroom Teachers Elementary Classroom Teachers High School - Adult Learning Center Middle School - Adult Learning Center Community Ed - Extended Day Kindergarten Community Ed - Early Childhood Family Ed Special Services Elementary Specialists Total Instruction

154.3 132.3 183.0 8.0 2.0 16.0 4.2 77.1 66.4 643.3

153.4 132.5 191.0 8.7 2.0 8.0 3.7 80.6 63.3 643.2

Student Services Curriculum and Instruction - Resource, Peer, Alt Comp Media Centers - Elementary High School - Professional Development High School - Counselors, Media, Vision 21 Middle Schools - Counselors, Media, Vision 21 Technology Special Services - Social Workers, Psychologists, Nurses, Etc. Total Student Services

20.0 7.0 0.3 13.0 15.0 3.0 45.4 103.7

20.5 7.1 0.3 13.0 15.5 3.0 44.9 104.3

Support Services Clerical/Secretarial Custodial Food Service Paraprofessionals Unaffiliated Specialists Unaffiliated Support Staff Total Support Services

48.0 73.0 43.8 254.2 22.5 5.0 446.5

48.0 73.0 43.8 254.2 20.8 5.0 444.8

1,247.9

1,248.5

District-Wide Totals Source: District Human Resource Department Notes: 1. All FTEs are based on an 8 hour day.

2. Data for nine years prior (fiscal year 2004) was not available, therefore, most recent year is used as a comparison.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 OPERATING STATISTICS LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year

Enrollment

Operating Expenditures

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

9,710 9,825 9,969 10,007 10,196 10,377 10,511 10,544 10,657 10,708

$ 86,936,483 91,760,742 100,411,725 106,941,388 113,315,322 113,656,576 117,584,500 121,786,584 124,740,958 132,892,192

Cost per Pupil $

8,953 9,340 10,072 10,687 11,114 10,953 11,187 11,550 11,705 12,411

Percentage Change

Teaching Staff

Pupil– Teacher Ratio

1.5 % 4.3 % 7.8 % 6.1 % 4.0 % (1.4)% 2.1 % 3.2 % 1.3 % 6.0 %

381 392 437 456 457 458 469 475 477 470

25.5 25.1 22.8 21.9 22.3 22.7 22.4 22.2 22.3 22.8

Source: Nonfinancial information from district records.

Note: Operating expenditures are total expenditures less debt service and capital outlays.

N/A: not available

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Percentage of Students Receiving Free or Reduced-Price Meals 8.9 10.5 10.8 13.0 12.5 13.2 14.4 14.6 14.3 12.9

Student Attendance Percentage N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 BUILDING INFORMATION LAST TEN FISCAL YEARS (UNAUDITED)

Elementary Schools Birchview (1969) Square Feet Capacity Enrollment Gleason Lake (1988) Square Feet Capacity Enrollment Greenwood (1964) Square Feet Capacity Enrollment Kimberly Lane (1991) Square Feet Capacity Enrollment Oakwood (1957) Square Feet Capacity Enrollment Plymouth Creek (1988) Square Feet Capacity Enrollment Sunset Hill (1963) Square Feet Capacity Enrollment Middle Schools East (1967) Square Feet Capacity Enrollment West (1949) Square Feet Capacity Enrollment Central (1961) Square Feet Capacity (1) Enrollment High School Peony (1997) Square Feet Capacity Enrollment

2005

2006

2007

2008

Fiscal Year 2009 2010

2011

2012

2013

2014

59,720 530 531

59,720 530 503

59,720 530 498

59,720 530 580

59,720 530 621

59,720 530 646

59,720 592 671

59,720 592 651

59,720 592 653

59,720 592 647

80,710 630 661

80,710 630 641

80,710 630 627

80,710 630 678

80,710 630 666

80,710 630 652

80,710 690 692

80,710 690 663

80,710 690 655

80,710 690 663

72,007 680 656

72,007 680 637

72,007 680 640

72,007 680 624

72,007 680 632

72,007 680 647

72,007 690 608

72,007 690 685

72,007 690 726

88,016 820 821

83,000 680 747

83,000 680 764

83,000 680 779

83,000 680 659

83,000 680 697

83,000 680 768

83,000 690 806

83,000 690 757

83,000 690 717

83,000 690 744

80,786 475 447

80,786 475 458

80,786 475 446

80,786 475 459

85,490 475 480

85,490 475 498

85,490 475 511

85,490 475 538

85,490 475 504

95,476 690 527

81,000 680 687

81,000 680 665

81,000 680 707

81,000 680 656

81,000 680 719

81,000 680 738

81,000 690 765

81,000 690 772

81,000 690 866

81,000 690 746

64,983 575 502

64,983 575 481

64,983 575 519

64,983 575 553

64,983 575 571

64,983 575 586

64,983 592 579

64,983 592 577

64,983 592 563

73,598 690 560

145,711 800 732

145,711 800 718

145,711 800 734

145,711 800 732

145,711 800 747

146,111 800 777

146,111 800 763

146,111 800 777

146,111 800 821

146,111 800 772

167,000 900 691

167,000 900 727

167,000 900 723

167,000 900 744

167,000 900 737

167,000 900 729

167,000 900 719

167,000 900 736

167,000 900 744

167,000 900 736

308,568 1700 836

308,568 1700 880

308,568 1700 885

308,568 1700 895

308,568 1700 903

308,568 1700 887

308,568 1700 942

308,568 1700 987

308,568 1700 1034

308,568 1700 1066

487,000 3200 3011

487,000 3200 3047

487,000 3200 3084

487,000 3200 3213

487,000 3200 3237

487,432 3200 3281

487,432 3200 3235

487,432 3200 3266

487,432 3200 3265

487,432 3200 3257

Source: Information above was obtained from District records. Enrollment data is as of October 1st of respective fiscal year.

Note: (1) Central Middle School capacity includes space for 1,400 middle school students and 300 birth to kindergarten students.

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