2013 comprehensive annual financial report

COMPREHENSIVE ANNUAL FINANCIAL REPORT OF WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 WAYZATA, MINNESOTA YEAR ENDED JUNE 30, 2013

PREPARED BY THE DEPARTMENT OF FINANCE AND BUSINESS SERVICES

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS YEAR ENDED JUNE 30, 2013

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

29

STATEMENT OF ACTIVITIES

30

GOVERNMENTAL FUNDS – BALANCE SHEET

31

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

32

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

33

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

34

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

35

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

36

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

37

PROPRIETARY FUND – INTERNAL SERVICE FUND – STATEMENT OF NET POSITION

38

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

39

PROPRIETARY FUND – INTERNAL SERVICE FUND – STATEMENT OF CASH FLOWS

40

STATEMENT OF FIDUCIARY NET POSITION

41

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

41

NOTES TO BASIC FINANCIAL STATEMENTS

42

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS (CONTINUED) YEAR ENDED JUNE 30, 2013

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

77

SUPPLEMENTARY INFORMATION GENERAL FUND BALANCE SHEET

78

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

79

FOOD SERVICE SPECIAL REVENUE FUND BALANCE SHEET

82

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

83

COMMUNITY SERVICE SPECIAL REVENUE FUND BALANCE SHEET

84

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

85

CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND BALANCE SHEET

86

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES

87

DEBT SERVICE FUND BALANCE SHEET

88

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

89

INTERNAL SERVICE FUND COMBINING STATEMENT OF NET POSITION

90

COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGE IN NET POSITION

91

COMBINING SCHEDULE OF CASH FLOWS

92

UNIFORM FINANCIAL ACCOUNTING AND REPORTING STANDARDS COMPLIANCE TABLE

93

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 TABLE OF CONTENTS (CONTINUED) YEAR ENDED JUNE 30, 2013

STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT

94

CHANGES IN NET POSITION

96

FUND BALANCES, GOVERNMENTAL FUNDS

98

CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

100

NET TAX CAPACITY AND VALUATION OF ALL TAXABLE PROPERTY

102

DIRECT AND OVERLAPPING PROPERTY TAX RATES

103

PRINCIPAL PROPERTY TAXPAYERS

105

PROPERTY TAX LEVIES AND COLLECTIONS

106

OUTSTANDING DEBT BY TYPE

108

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT

109

LEGAL DEBT MARGIN INFORMATION

110

DEMOGRAPHIC AND ECONOMIC STATISTICS

112

PRINCIPAL EMPLOYERS

113

FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

114

OPERATING STATISTICS

115

BUILDING INFORMATION

116

INTRODUCTORY SECTION

December 5, 2013 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, 2013. 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 2012-2013, District facilities included seven elementary schools, three middle schools, a senior high school, a district administration center, and a central service facility.

Enrollment for the 2012-2013 school year was 10,657 pupils in adjusted average daily membership, which represents an increase of 113 students from the prior year. Demographic forecasts project stable enrollment for the next several years. Projected enrollments for the near future per an independent demographer hired by the District are: Fiscal Year 2014 2015

Enrollment 10,673 11,016

The tax base of the District decreased 1.41% during the past year. The market value of all taxable property in the District in fiscal year 2013 was $9,821,945,763 compared to $9,963,416,806 in fiscal year 2012.

The net tax capacity of the District for fiscal year 2013 was $109,891,883 a decrease of 1.11% over the prior year value of $111,127,795.

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 following table displays the District’s net valuation contribution for the last twelve years.

Tax Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Amount $ 12,979,629 8,490,062 9,580,309 9,531,729 9,061,471 8,772,387 9,731,937 10,854,333 12,207,145 12,409,498 11,937,039 11,509,792

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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.

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 $11.5 million which represents 10% 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 $18.0 million in fiscal year 2012 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 2012. Both renewed authorizations are 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 2011 legislature provided a $50 increase in the general education basic formula allowance for fiscal year 2012 and fiscal year 2013. 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 2013 and has adequate reserves.

Below are some facts about the 2013-2014 budget:  

Student enrollment is expected to remain stable The General Fund unassigned balance at year-end is projected at $11.1 million

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LOOKING FORWARD (CONTINUED) Revenues:    

General Fund revenue will increase to $122.8 million Basic Formula is $5,224 for FY 2013 and $5,302 for FY 2014 The referendum levy is $1,630 per pupil unit State special education aid is expected to be prorated so the District will receive about 88% of its full entitlement, at a loss of about $275,000, net of excess cost aid

Expenditures:     

General Fund expenditures will increase to $123.7 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 2.5%

Construction Projects: 

The District authorized $9.98 million in certificates of participation during fiscal year 2013. The District received approval from the Minnesota Department of Education and initiated the construction of projects under this program. The proceeds will be used to finance a portion of the cost of construction of additions to Oakwood, Greenwood, and Sunset Elementary schools and the Central Services Facility.

Other: 

The District’s budgeted expenditures are more than revenues for fiscal year 2014. The reason for the difference is due to the utilization of $.9 million in resources received in prior years for capital projects and other categorical funded programs.

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 2012 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 2013 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, 2013

SCHOOL BOARD NAME

POSITION

Ms. Susan Hayes Droegemueller Mr. Jay Hesby Ms. Susan Gaither Ms. Linda A. Cohen Ms. Carter G. Peterson Ms. Cheryl Polzin Mr. John A. Moroz Dr. Chace B. Anderson

Chair Vice Chair Treasurer Director Director Director Clerk Ex Officio

ADMINISTRATION NAME

POSITION

Dr. Chace B. Anderson

Superintendent of Schools

Ms. 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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Executive Director of Finance and Business Services

Executive Director of Teaching and Learning

STRATEGY LEADERSHIP TEAM

Jon Deutsch

STRATEGY LEADERSHIP TEAM

High School

Elementary School

Principals (7)

Middle School

Principals (3)

Principal (1)

Alternative Compensation Supervisor

Director of Facilities and Transportation

Brad Anderson

Director Of Curriculum And Instruction

Shelly Nelson

Middle School

Jeri Johnson

Barb Beise Asst. Director of Athletics/Activities

Jaime Sherwood Director of Athletics/ Activities

Special Services Program Supervisor

Carin Porter

Special Services Program Supervisor

High School

TEACHING AND LEARNING LEADERSHIP TEAM

Associate Principals (5)

TEACHING AND LEARNING LEADERSHIP TEAM

Lynn Zemlin Home Base/Wishes Coordinator

Director of Administrative Services

Special Services Program Supervisor

Kristin Tollison

Family Learning Center Coordinator

Marcia Treno

Director Of Research And Evaluation

Tech. Mgr. – Support/Information Systems

Brian Ackerman

Tech. Mgr. – Infrastructure and Operations

Bob Barbknecht

BOB WITMAN Director Of Community Education

Culinary Express Supervisor

Bonnie Johnson

Early Childhood Special Education Coordinator

Donna Marget

Director Of Technology

WADE PHILLIPS

Stacey Lackner

Associate Principals (3)

President - WEA

JODI OLSON

LORI FILDES Director Of Special Services

Human Resource Services Manager, Benefits & Classified Staff

Director Of Buildings And Grounds

Joe Matson

Controller

Director of Communications and Community Engagement

AMY PARNELL

Executive Asst.

Colleen O’Brien Erickson

Mary Anderson

Director Of Personalized Learning And Interventions

Karla Thompson

JIM WESTRUM

JILL JOHNSON

Jill Schwint

CHACE ANDERSON Superintendent of Schools

Leslie Myrin

Human Resource Services Manager, Certified Staff

Jodi Dilly

Executive Director of Human Resource Services

ANNIE DOUGHTY

December 9, 2013

Wayzata Public Schools – Leadership Team

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, 2013, 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, 2013, 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 2012 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 17, 2012. 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 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 December 5, 2013, 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 December 5, 2013

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REQUIRED SUPPLEMENTARY INFORMATION

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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, 2013. 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 2012-2013 fiscal year include the following: 

Net position increased by $6,514,113, or 5.8% over June 30, 2012.



Overall General Fund revenues were $121,243,385 as compared to expenditures of $113,747,018.



Government Wide expenses totaled $141,520,391 as compared to prior year expenses of $135,824,071.



Total fund balance of the General Fund increased $3,099,777 from $22,360,288 in 2012 to $25,460,065 in 2013, an increase of 13.9%. The District committed the proceeds of a land sale for an anticipated future land purchase. The fund balance increased by $2,889,790 due to this transaction. Without this transaction, the fund balance increased $209,987 or .9% from 2012 to 2013.



The District decreased its outstanding bonds payable by $9,580,000 and issued Certificates of Participation of $9,980,000.

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, 2013

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

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

Figure A-2 summarizes the major features of the District’s financial statements, including the portion of the District’s activities they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis highlights the structure and contents of each of the statements.

Figure A-2. Major Features of the District's Government-wide and Fund Financial Statements

Type of Statements

Scope

Government-wide

Governmental Funds Entire Agency’s government The activities of the district (except fiduciary funds) that are not proprietary or and the Agency's component fiduciary units

Fund Statements Proprietary Funds Activities the district operates similar to private businesses: self insurance

Fiduciary Funds Instances in which the district is the trustee or agent for someone else's resources

 Statement of net position

 Balance sheet

 Statement of net position

 Statement of fiduciary net position  Statement of changes in fiduciary net position

Required financial statements

 Statement of activities

 Statement of revenues, expenditures and changes in fund balances

 Statement of revenues, expenses and changes in fund net position

Accounting basis and measurement focus

Accrual accounting and economic resources focus

Modified accrual accounting and current financial resources focus Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included

Accrual accounting and economic resources focus

Accrual accounting and economic resources focus

All assets and liabilities, both financial and capital, and short-term and longterm

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter

All revenues and expenses during year, regardless of when cash is received or paid

All assets and liabilities, both short-term and longterm; the Agency's funds do not currently contain capital assets, although they can All revenues and expenses during year, regardless of when cash is received or paid

 Statement of cash flows

Type of asset/liability information

Type of inflow/outflow information

All assets and liabilities, both financial and capital, short-term and long-term

All revenues and expenses during year, regardless of when cash is received or paid

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 and liabilities. 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 and liabilities – 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.



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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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, 2013

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Net Position The District’s combined net position was $118,843,379 on June 30, 2013. This was a change of 5.8% from the prior year (see Table A-1).

Table A-1 The District's Net Position Governmental Activities 2013 2012 Current and Other Assets Capital and Non-Current Assets Total Assets Current Liabilities Long-Term Liabilities Total Liabilities Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position

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

$ 143,809,420 110,985,699 254,795,119

57,507,493 69,136,908 126,644,401

73,170,683 69,295,170 142,465,853

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

41,301,936 26,816,481 44,210,849 $ 112,329,266

Percentage Change (10.6)% 5.3 (3.7) (21.4) (0.2) (11.1)

11.7 2.8 2.1 5.8

The District’s financial position changed with a net position increase of $6,514,113 from 2012 to 2013.

Following are some of the highlights of that net change: a) Total assets decreased $9.3 million of which the Current and Other Assets portion had a net decrease of $15.2 million combined with an increase of $5.9 million relating to Capital and NonCurrent Assets. The decrease in current and other assets was largely attributed to the District borrowing for cash flow purposes in the prior year due to the legislative increase in the tax shift resulting in the delayed payment of state aids. b) Total liabilities decreased by $16.1 million, which was largely attributed to the recording of the short term borrowing for cash flow purposes due to a legislative delay in payment of state aids.

(16)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

Changes in Net Position The District’s total revenues were $148,034,504 for the year ended June 30, 2013. Property taxes and state aid accounted for 78% of total revenue for the year (see Figure A-3). 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, 2013 2012 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

$

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

$

11,450,706 17,204,917 -

Total % Change

3.6 % (7.9) -

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

46,544,130 66,145,035 855,344 1,544,009 143,744,141

4.0 1.9 (9.8) 124.1 3.0

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 Unallocated - Depreciation Interest and Fiscal Charges on Long-Term Liabilities Total Expenses

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 -

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 7,960,867 936,783

2.4 6.8 (2.7) 17.1 2.5 (8.8) 5.9 61.3 7.6 1.0 (0.6) (100.0)

2,059,956 141,520,391

2,170,792 135,824,071

(5.1) 4.2

Increase in Net Position Beginning Net Position Ending Net Position

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

7,920,070 104,409,196 112,329,266

$

$

The total cost of all programs and services excluding interest and fiscal charges was approximately $140 million. Total revenues exceeded expenditures, increasing net position $6.5 million over last year.

(17)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

The cost of all governmental activities this year was $141,520,391. 

The portion of the cost paid by the users of the District’s programs was $11,863,834.



Federal, state and local governments subsidized certain programs with grants and contributions $16,103,785.



Other District revenues included a total of $48,427,215 in property taxes and $67,408,720 of unrestricted state aid. Property tax revenue increased $1,883,085 with a corresponding increase in state aids of $1,263,685 mainly due to increased resident enrollment.

Figure A-3 Sources of District's Revenues for Fiscal 2013

All Other 3%

Charges for Services 8% Operating and Capital Grants 11%

Unrestricted State Aid 45%

Property Taxes 33%

Figure A-4 District Expenses for Fiscal 2013

Maintenance 14%

Other 2%

Admin 3%

Food & Comm Service 9%

Instruction-Related 55%

Student Support Services 17%

(18)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

Typically the District does not include in an analysis of government-wide activities a breakout of expenses as depicted in Figure A-4. 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 2013 2012 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 Unallocated - Depreciation Interest and Fiscal Charges on Long-Term Liabilities Total

$

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

$

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 7,960,867 936,783

2,170,792 $ 135,824,071

(19)

Percentage Change 2.4 % 6.8 (2.7) 17.1 2.5 (8.8) 5.9 61.3 7.6 1.0 (0.6) (100.0) (5.1) 4.2

Net Cost of Services 2013 2012 $

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

$

3,752,600 3,889,519 49,567,552 2,244,616 12,474,083 9,225,051 9,241,484 11,616,106 296,088 69,438 1,684,336 936,783

2,170,792 $ 107,168,448

Percentage Change (0.9)% 5.9 (2.0) (5.3) 12.8 (8.9) 7.4 62.9 7.6 (146.2) (21.1) (100.0) (5.1) 6.0

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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 30. 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 $44,823,389, which was $1,982,912 more than last year’s ending fund balance of $42,840,477.

Revenues for the District’s governmental funds were $145,745,451, while total expenditures were $158,242,506.

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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 seven 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) 2006 Reg K, Pre-K & KH Elementary Secondary Total Students for Aid Percent Change

2007

2008

2009

2010

2011

2012

2013

707 4,330 4,788

709 4,368 4,890

633 4,452 4,922

696 4,535 4,965

761 4,649 4,967

785 4,754 4,972

667 4,900 4,977

740 4,877 5,040

9,825 1.18%

9,967 1.45%

10,007 0.40%

10,196 1.89%

10,377 1.77%

10,511 1.29%

10,544 0.31%

10,657 1.07%

WAYZATA PUBLIC SCHOOLS Student Enrollment (in ADMs)

12,000 10,000 8,000 6,000

4,000 2,000

Secondary

2013

2012

2011

2010

2009

2008

2007

2006

0

Elementary

Student enrollment is at current or above physical capacity of the buildings and projected total enrollments for the next five years show increased enrollment.

(21)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

The following schedule presents a summary of General Fund Revenues.

Table A-5 General Fund Revenues June 30, 2013

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

Year Ended June 30, 2012

$

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

$

$

34,670,055 10,340 2,877,541 77,414,109 4,095,166 119,067,211

Change Increase (Decrease) Percent

$

$

1,420,664 9,185 468,570 1,182,369 (904,614) 2,176,174

4.1 % 88.8 16.3 1.5 (22.1) 1.8

Total General Fund Revenue increased by $2,176,174 or 1.8% from the previous year. The change in revenue is primarily due to the following: 

The increased in property taxes is due to the increase in resident student population and the corresponding increase in referendum revenue.



Earnings on investments has been minimal due to a less than favorable interest rate environment in fiscal years 2013 and 2012.



Decrease in federal sources was due to the District receiving Federal Fiscal Stabilization dollars in 2011 and allocating any remaining dollars in 2012. The funds are no longer available for use after 2012.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

The following schedule presents a summary of General Fund Expenditures.

Table A-6 General Fund Expenditures Year Ended June 30, 2013 Salaries Employee Benefits Purchased Services Supplies and Materials Capital Expenditures Other Expenditures Total Expenditures

Amount of Increase (Decrease)

June 30, 2012

$

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

$

67,571,160 20,369,559 16,971,451 3,361,149 1,870,719 1,151,279 $ 111,295,317

$

$

1,755,166 391,793 865,172 217,670 (468,867) (309,233) 2,451,701

Percent Increase (Decrease) 2.6 % 1.9 5.1 6.5 (25.1) (26.9) 2.2

Total General Fund Expenditures increased by $2,451,701 or 2.2% from the previous year. Salaries increased by $1,755,166 over the previous year, or 2.6%, and benefits increased by $391,793, or 1.9%.

The remaining changes in General Fund Expenditures can be attributed to intentional cost containment including a planned decrease in capital expenditures in anticipation of capital expenditures charged in the next fiscal year.

In addition to the General Fund Expenditures shown in Table A-6, the amount of $7,648,940 was transferred to the Capital Projects/Building Construction Fund. This included the technology levy of $5.6 million; the remaining $2 million was for alternative facilities projects.

In 2012-2013, General Fund revenues and other financing sources were more than expenditures and other financing uses by $3,099,777. This includes $2,889,790 in proceeds of the sale of land. After deducting statutory reserves, the unassigned fund balance decreased from $12,213,903 at June 30, 2012 to $11,476,097 at June 30, 2013.

The unassigned fund balance is the single best measure of overall financial health. The unassigned fund balance of $11,476,097 at June 30, 2013 represents 10% 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 2013-2014 budget projects that the fund balance will decrease slightly.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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 $1,208,314 more favorable than budgeted due to an adjustment in property taxes due to an increase in resident enrollment and a transfer from the OPEB fund for those expenditures relating to post employment benefits.

Total General Fund expenditures were $1,846,387 more favorable than budgeted. The variance represents timing differences in completion of various projects along with site carryover budgeted.

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

137,585 1,203,292 3,884,424 5,225,301

$

$

1,463,583 6,380,401 383,259 8,227,243

Fiscal 2013 Total $

$

1,463,583 6,380,401 520,844 1,203,292 3,884,424 13,452,544

Increase (Decrease) Over FY 2012 $

$

44,956 249,470 (87,727) 127,463 22,197 356,359

Table A-8 Special Revenue Fund Expenditures Food Service

Expenditures Pupil Support Services Community Education Services Capital Total Expenditures

$

$

Community Education

5,085,281 120,036 5,205,317

(24)

$

$

7,841,272 62,216 7,903,488

Fiscal 2013 Total $

$

5,085,281 7,841,272 182,252 13,108,805

Increase (Decrease) Over FY 2012 $

$

11,482 (22,617) (31,210) (42,345)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

Total Special Revenue Fund Revenues increased less than 2.7% from the previous year. The Food Service Fund increased revenues by $153,677 noting an increase in federal reimbursements and a decrease in sales funded without reimbursement.

Community Education revenues increased by $202,682 primarily due to additional revenues from patrons and utilization of the District’s school aged childcare, youth, and after school programming.

The Food Service fund balance is $1,356,861, or 26.1% of expenditures, as of June 30, 2013. This amount reflects an increase of $19,984 from a beginning balance of $1,336,877. This increase is $125,046 more favorable than budgeted, and represents a 2.4 percent (2.4%) 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 $1,688,751, or 21.4% of expenditures, as of June 30, 2013.

This amount reflects an increase of $352,822 from a beginning balance of $1,335,929. This increase is $426,514 more favorable than budgeted, and represents approximately a 5.4 percent (5.4%) 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 $63,241 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 $9.98 million in certificates of participation in 2013. The proceeds from this issue will be used for the construction of additions at three elementary schools and the central services facility.

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 $5.6 million was transferred from the General Fund for this purpose and expended from the Capital Projects – Building Construction Fund.

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 deferred maintenance at various District sites and facilities.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

The Capital Projects and Construction fund balance decreased from a balance of $15,433,822 as of June 30, 2012 to a balance of $14,369,419 as of June 30, 2013. Most of the intentional utilization in fund balance can be attributed to the timing of the completion of summer construction projects in comparison to when the District receives revenue reimbursements. Construction projects ideally occur over the summer months and cross fiscal years. In addition, health and safety expenditures are fully funded through the state approved health and safety revenue, there is typically a timing difference and does not have an adverse effect on the District’s financial position taken as a whole.

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 2013. The District issued $9.95 million of certificates of participation during 2013.

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 2013, the District had invested slightly more than $205 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 $6.2 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

2013 Land Construction in Progress Land Improvements Buildings and Improvements Equipment Less: Accumulated Depreciation Total

$

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

$ 116,891,083

(26)

2012 $

8,054,939 1,275,227 9,687,055 159,343,974 15,022,519 (82,398,015)

$ 110,985,699

Percentage Change (14.9)% 374.7 4.8 6.3 7.6 5.3

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

Construction – Next Five Years A 1998 bond referendum authorized the issuance of $18.5 million in bonds for technology and deferred maintenance. The projects funded with those bonds cleared a substantial backlog of deferred 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.

During the fiscal year 2012-13, the District issued Certificates of Participation for additions to three elementary schools and the Central Services Facility. The construction included twelve additional classrooms and was completed during the summer of 2013.

The District sold land for an anticipated new elementary school to accommodate enrollment growth, but determined the land was not ideal for building. In July 2014, the District purchased land adjacent to the high school in anticipation of enrollment growth.

The District is experiencing enrollment growth and will further address the facility needs in the 13-14 school year. The Board of Education has called for a special election on February 25, 2014 to address capacity concerns.

Long-Term Liabilities At year-end, the District had $56,070,000 in general obligation bonds, a decrease of 13.9% 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

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

2012

Percentage Change

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

$ 65,135,000 2,349,744 2,190,000 9,019 6,228,549 4,668,298 489,095

(13.9)% (10.8) 432.2 10079.6 (8.7) 6.8 (0.6)

$ 81,900,258

$ 81,069,705

$

12,763,350 69,136,908

$

11,774,535 69,295,170

$

81,900,258

$

81,069,705

(27)

1.0

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2013

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 $1.5 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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

Governmental Activities 2013 2012 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 Short-Term Borrowing 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: Property Taxes Local Sources Long-Term Liabilities: Portion Due Within One Year Portion Due in More Than One Year Total Liabilities 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.

(29)

57,851,617 8,307,440

$

62,204,770 1,518,139

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

24,409,669 32,850,674 1,372,746 644,369 153,385 20,164,200 491,468

12,909,011 103,982,072

9,330,166 101,655,533

245,487,780

254,795,119

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

20,040,000 2,638,997 4,355,162 1,267,358 258,675 91 1,356,540

30,851,354 1,917,085

30,406,347 1,072,978

12,763,350 69,136,908

11,774,535 69,295,170

126,644,401

142,465,853

46,152,372

41,301,936

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

7,276,447 1,336,877 1,335,929 1,433,406 15,433,822 44,210,849

118,843,379

$

112,329,266

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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 Unallocated - Depreciation Total School District

Charges for Services

Expenses

$

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

Program Revenues Operating Grants and Contributions

$

275,959 1,080,264 2,270 4,441 2,485 14,543 461,493 3,884,424 6,137,955

$

9,954,117 500,443 1,959,924 57,000 1,592,168 1,340,877 446,327

2,059,956 -

-

-

$ 141,520,391

$ 11,863,834

$ 15,850,856

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 Net Position - Beginning Net Position - Ending

See accompanying Notes to Basic Financial Statements.

(30)

Capital Grants and Contributions

$

$

35,938 109,238 1,788 105,965 -

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

$

(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)

2012 Net (Expense) Revenue and Changes in Net Position Total Governmental Activities

$

(3,752,600) (3,889,519) (49,567,552) (2,244,616) (12,474,083) (9,225,051) (9,241,484) (11,616,106) (296,088) (69,438) (1,684,336)

-

(2,059,956) -

(2,170,792) (936,783)

252,929

(113,552,772)

(107,168,448)

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

34,707,170 1,420,146 10,416,814 66,145,035 855,344 1,544,009

120,066,885

115,088,518

6,514,113

7,920,070

112,329,266

104,409,196

$ 118,843,379

$ 112,329,266

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

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 Other Governmental Units Other Receivables Prepaid Items Inventory Total Assets LIABILITIES AND FUND BALANCE Liabilities: Short-Term Borrowing Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Due to Other Governmental Units Accrued Interest Payable Property Tax Shift Adjustment Deferred Revenue: Property Taxes Levied for Subsequent Year Delinquent Property Taxes Local Sources Total Liabilities 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 Disabled Accessibility Safe Schools Levy Dome Escrow Worker's Compensation Escrow Community Education Programs Early Childhood and Family Educations Programs School Readiness 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 and Fund Balance

General

Food Service

Community Service

Capital Projects Building Construction

$ 17,016,679 1,606,221

$ 1,547,981 -

$ 2,927,306 -

$ 10,305,085 6,701,219

$ 7,549,418 -

17,885,866 363,095 319,967 12,294,211

-

764,405 14,584 184,361 50,783

-

878,130 256,228 139,415 72,365 81,598

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

178,722 7,308 -

$ 50,913,775

$ 1,648,174

$

$

261,073 1,933,320 3,064,388 683,926 50,602

285 61,110 -

Debt Service

Total Governmental Funds 2013 2012 39,346,469 8,307,440

$ 42,579,384 1,518,139

5,607,393 112,491 182

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

23,688,129 721,540 398,242 29,029,574

9,597 195,050 -

-

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

3,143,303 279,555 163,516 644,369 153,385

$ 4,127,469

$ 17,210,951

$ 13,269,484

$

87,169,853

$ 102,319,136

$

$

$

$

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

$ 20,040,000 664,333 1,974,664 4,250,059 258,675 300,425 91

160,654 11,260 263,607 667 -

7,437 7,040 2,716,375 -

-

$

18,824,368 263,919 372,114 25,453,710

229,918 291,313

787,509 10,648 1,204,373 2,438,718

110,680 2,841,532

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

30,851,354 356,281 1,917,085 42,346,464

30,406,347 511,087 1,072,978 59,478,659

72,365 81,598

2,641 71,998

7,308 -

195,050 -

-

277,364 153,596

644,369 153,385

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

1,282,222

1,023,557 7,508 650,378

2,403,043 7,663,807 4,107,519 -

1,948,293

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

974,935 2,332,427 12,986,835 250,000 276,053 651,959 119,616 4,464,701 7,452 167,231 364,500 272,000 660,360 25,117 7,201 4,270,052

2,889,790

-

-

-

-

2,889,790

-

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

1,356,861

1,688,751

14,369,419

1,948,293

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

193,929 588,935 838,863 376,654 12,213,903 42,840,477

$ 50,913,775

$ 1,648,174

$ 4,127,469

$ 17,210,951

$ 13,269,484

87,169,853

$ 102,319,136

See accompanying Notes to Basic Financial Statements.

(31)

$

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

2013 Total Fund Balance for Governmental Funds

$

44,823,389

2012 $

42,840,477

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

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

8,054,939 1,275,227 4,298,080 93,786,582 3,570,871

356,281

511,087

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

(995,359)

(966,933)

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

555,444

491,468

7,466,287

8,476,126

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

(65,135,000) (2,349,744) (2,190,000) (9,019) 20,164,200 (489,095)

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 revenue in the 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 assets at year-end are: 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 Total Net Position of Governmental Activities

$ 118,843,379

See accompanying Notes to Basic Financial Statements.

(32)

$ 112,329,266

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE YEAR ENDED JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

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

$

Total Other Financing Sources (Uses)

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

$

10,273 10,193 -

$ 11,027,719 1,337 -

$

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

$

46,494,356 18,759 12,893,963 78,173,924 5,170,995

5,225,301

8,227,243

20,466

11,029,056

145,745,451

142,751,997

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 1,401,852

5,085,281 120,036

7,841,272 62,216

19,932,359

-

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

3,882,175 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

515,000 15,761

-

-

-

9,065,000 2,389,324

9,580,000 2,405,085

8,695,000 2,582,338

113,747,018

5,205,317

7,903,488

19,932,359

11,454,324

158,242,506

146,021,128

7,496,367

19,984

323,755

(19,911,893)

-

4,067 25,000 -

1,383,350 9,815,200 7,648,940 -

-

29,067

18,847,490

19,984

352,822

(1,064,403)

3,099,777 22,360,288 $

$

Total Governmental Funds 2013 2012

Debt Service

121,243,385

(4,396,590)

Fund Balances - Beginning

Community Service

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

2,900 2,889,790 5,794 164,800 214,066 (7,673,940)

Net Change in Fund Balances

Fund Balances - Ending

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

Capital Projects Building Construction

25,460,065

1,336,877 $

1,356,861

$

See accompanying Notes to Basic Financial Statements.

(33)

(425,268)

(12,497,055)

(3,269,131)

-

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

5,370 105,785 15,800,000 512,660 7,264,007 (7,264,007)

-

14,479,967

16,423,815

1,982,912

13,154,684

(425,268)

1,335,929

15,433,822

2,373,561

1,688,751

$ 14,369,419

$ 1,948,293

42,840,477 $

44,823,389

29,685,793 $

42,840,477

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013 Net Change in Fund Balance - Total Governmental Funds

$

1,982,912

2012 $

13,154,684

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 (Loss) on Disposal of Capital Assets Proceeds from Sales of Capital Assets Depreciation Expense

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

7,610,901 (10,403) (5,911,834)

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

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

620 29,549

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 issuance costs and premiums when debt is first issued, whereas these amounts are deferred and 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

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

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.

(154,806)

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).

2,721

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).

807,139

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

(34)

49,774

(1,733)

504,526

(1,009,839) $

See accompanying Notes to Basic Financial Statements.

(15,800,000) (512,660) 181,430 505,000 8,190,000 55,729 6,400 (78,147) 426,944

6,514,113

(480,710) $

7,920,070

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, 2013

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

35,412,650 2,193,148 78,994,184 3,169,032

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

Actual Amounts

35,412,650 2,285,382 78,994,184 3,342,855

$

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

$

678,069 19,525 1,060,729 (397,706) (152,303)

119,769,014

120,035,071

121,243,385

1,208,314

4,028,446 3,993,792 54,704,263 2,527,870 15,456,484 8,691,343 11,295,737 9,732,019 513,215 1,449,983

4,159,199 4,073,410 55,695,900 2,622,884 15,804,463 10,226,540 11,509,876 9,699,335 307,315 1,444,483

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 1,401,852

(216,709) (106,732) 53,466 (26,190) 86,088 (1,793,554) (22,594) (269,555) 11,263 (42,631)

50,000

50,000

515,000 15,761

515,000 (34,239)

112,443,152

115,593,405

113,747,018

(1,846,387)

7,325,862

4,441,666

7,496,367

3,054,701

5,000 (7,673,940)

5,000 (7,673,940)

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

(2,100) 2,889,790 5,794 378,866 -

(7,668,940)

(7,668,940)

(4,396,590)

3,272,350

(3,227,274)

3,099,777

Excess of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Sale of Equipment Proceeds from Sale of Real Property Insurance Recovery Proceeds Certificates of Participation Proceeds Transfers Out

$

Over (Under) Final Budget

$

(343,078)

$

FUND BALANCE Beginning of Year

22,360,288

End of Year

$

See accompanying Notes to Basic Financial Statements.

(35)

25,460,065

$

6,327,051

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, 2013

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

$

3,996,623 131,750 1,045,750

$

3,996,623 131,750 1,045,750

Over (Under) Final Budget

Actual Amounts

$

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

$

(112,199) 5,835 157,542

5,174,123

5,174,123

5,225,301

51,178

5,125,185 154,000

5,125,185 154,000

5,085,281 120,036

(39,904) (33,964)

5,279,185

5,279,185

5,205,317

(73,868)

(105,062)

$

(105,062)

19,984

FUND BALANCE Beginning of Year

1,336,877

End of Year

$

See accompanying Notes to Basic Financial Statements.

(36)

1,356,861

$

125,046

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, 2013

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

1,402,000 5,828,698 415,811

$

1,402,000 5,828,698 401,812

Over (Under) Final Budget

Actual Amounts

$

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

$

61,583 551,703 (18,553)

7,646,509

7,632,510

8,227,243

594,733

7,624,405 51,960

7,679,242 51,960

7,841,272 62,216

162,030 10,256

7,676,365

7,731,202

7,903,488

172,286

Excess (Deficiency) of Revenues Over (Under) Expenditures

(29,856)

(98,692)

323,755

422,447

OTHER FINANCING SOURCES Insurance Recovery Proceeds Transfer In

25,000

25,000

4,067 25,000

4,067 -

25,000

25,000

29,067

4,067

(73,692)

352,822

Total Other Financing Sources Net Change in Fund Balance

$

(4,856)

$

FUND BALANCE Beginning of Year

1,335,929

End of Year

$

See accompanying Notes to Basic Financial Statements.

(37)

1,688,751

$

426,514

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPRIETARY FUND INTERNAL SERVICE FUND STATEMENT OF NET POSITION JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

Governmental Activities Internal Service Funds 2013 2012 ASSETS Current Assets: Cash and Investments Accounts Receivable Prepaid Items

$

Total Current Assets

18,505,148 1,391,813 3,100

$

19,625,386 1,209,230 -

19,900,061

20,834,616

111,423 1,647,178

105,103 1,356,540

1,758,601

1,461,643

5,687,137 4,988,036

6,228,549 4,668,298

Total Long-Term Liabilities

10,675,173

10,896,847

Total Liabilities

12,433,774

12,358,490

LIABILITIES Current Liabilities: Accounts Payable Claims Payable for Health and Dental Benefits Total Current Liabilities Long-Term Liabilities: Liability for Early Retirement Incentives Sick Leave Payable

NET POSITION Unrestricted

$

See accompanying Notes to Basic Financial Statements.

(38)

7,466,287

$

8,476,126

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

Governmental Activities Internal Service Funds 2013 2012 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 Total Operating Expenses Operating Loss NONOPERATING REVENUE Earnings on Investments

13,529,533 437,424

$

13,966,957

13,596,423

13,371,453 1,084,334 1,262,317

12,815,321 1,009,194 1,089,203

15,718,104

14,913,718

(1,751,147)

(1,317,295)

741,308

Change in Net Position

(1,009,839)

Net Position - Beginning

8,476,126

Net Position - Ending

$

See accompanying Notes to Basic Financial Statements.

(39)

13,228,214 368,209

7,466,287

836,585 (480,710) 8,956,836 $

8,476,126

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PROPRIETARY FUND INTERNAL SERVICE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

Governmental Activities Internal Service Funds 2013 2012 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

$

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received

13,784,374 (14,161,929) (1,483,991) (1,861,546)

$

741,308

NET DECREASE IN CASH AND CASH EQUIVALENTS

(1,120,238)

Cash and Cash Equivalents - Beginning

19,625,386

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) Decrease in Accounts Receivable (Increase) Decrease in Prepaid Items Increase in Accounts Payable Increase in Claims Payable Decrease in Liability for Early Retirement Incentives Increase (Decrease) in Sick Leave Payable

(40)

(652,017) 20,277,403

18,505,148

$

19,625,386

$

(1,751,147)

$

(1,317,295)

$

See accompanying Notes to Basic Financial Statements.

836,585

$

Total Adjustments Net Cash Used by Operating Activities

13,608,967 (13,564,168) (1,533,401) (1,488,602)

(182,583) (3,100) 6,320 290,638 (541,412) 319,738

12,544 39,007 1,591 219,749 (229,581) (214,617)

(110,399)

(171,307)

(1,861,546)

$

(1,488,602)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2013

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

$

Total Assets

321,739 53

$

$

29,493,721 -

321,792

29,493,721

-

16,000

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

Other PostEmployment Benefit Trust

321,792

$

29,477,721

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2013

PrivatePurpose Trust ADDITIONS Gifts and Donations Earnings on Investments Total Additions

$

16,436 934 17,370

Other Post Employment Benefit Trust

$

3,256,469 3,256,469

DEDUCTIONS Miscellaneous

8,500

1,074,832

Change in Net Position

8,870

2,181,637

312,922

27,296,084

Net Position - Beginning of Year Net Position - End of Year

$

See accompanying Notes to Basic Financial Statements.

(41)

321,792

$

29,477,721

NOTES TO BASIC FINANCIAL STATEMENTS

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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. The GASB has issued a codification of governmental accounting and financial reporting standards titled Codification of Governmental Accounting and Financial Reporting Standards: Statement 34 Edition.

This codification and subsequent GASB pronouncements are recognized as GAAP for state and local governments that have implemented GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.

This financial report has been prepared in conformity with GASB Statement No. 34.

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) The District reports unavailable or unearned revenue on its balance sheet and statement of net position. Unavailable revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues arise when resources are received by the District before it has a legal claim to them, as when grant monies are received prior to incurring the qualifying expenditures.

In subsequent periods when both revenue recognition criteria are met or when the District has a legal claim to the resources, the liability for unavailable revenue or unearned revenue is removed from the statement of net position or balance sheet and revenue is recognized.

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) Description of Funds (Continued) Major Governmental Funds (Continued) 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.

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, 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, 2013

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 Debt Service Fund

Original Budget $ 119,769,014

Amendments $ 266,057

7,646,509 $ 112,443,152 7,676,365 11,646,441

$

(13,999) $

3,150,253 54,837 (425,780)

Amended Budget 120,035,071 7,632,510

$

115,593,405 7,731,202 11,220,661

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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. 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 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.�

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Property Taxes (Continued) 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 2013 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 (net of credits). In fiscal year 2013, the tax shift was increased by $346,958 for the General Fund and increased by $63,238 in the Community Service Fund. Since advance collections of Pay 2013 levy amounts at June 30, 2013, were sufficient to cover the amounts required to be advance recognized as revenue in fiscal 2013, the amount advance recognized is tax revenue. To the extent advance collections would have been insufficient to cover the amount to be advance recognized, state statute requires that fiscal 2014 general education aid be recognized.

Certain other portions of the District’s 2012 pay 2013 levy, normally revenue for the 2013-14 fiscal year, are also advance recognized as June 30, 2013, 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 deferred because it is not known to be 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.

K. 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 repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

(49)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Capital Assets (Continued) 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.

L. 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 deferred and amortized over the life of the bonds using the effective interest 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.

M. 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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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 and liabilities in the Governmentwide, 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, 2012, from which the summarized information was derived.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 2

STEWARDSHIP AND ACCOUNTABILITY Excess of Expenditures Over Budget Expenditures exceeded budgeted amounts in the following funds at June 30, 2013.

Budget Special Revenue Funds: Community Service Fund Capital Projects Fund Debt Service Fund

$

7,731,202 14,131,950 11,220,661

Expenditures $

7,903,488 19,932,359 11,454,324

Excess $

172,286 5,800,409 233,663

The overages in the Community Service Fund were incurred by District management as a result of increased enrollment and participation in programs and have a corresponding increase in revenues. 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. The overage in the debt service fund was related to bond interest expense being slightly higher than budgeted.

NOTE 3

DEPOSITS AND INVESTMENTS A. Deposits The District maintains a cash and investment pool that is available for use by all funds.

Each fund type's portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and Investments."

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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) A. Deposits (Continued) The District’s deposits in banks at June 30, 2013 in the amount of $7,348,987 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes.

Cash on Hand Cash in the possession of the District consisting of petty cash and change funds at year-end 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.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) At June 30, 2013, the District’s investment balances were as follows: Maturing in Less than One Year Unrestricted: Mutual Funds MNTrust Term Series Minnesota School District Liquid Asset Fund Plus (MSDLAF+) Cash Surrender Value of Life Insurance Policies Restricted: U.S. Government Securities Other Fiscal Agent Accounts

$

13,020,036 15,500,000 7,056,856 17,930,209

Carrying and Fair Value $

1,440,449 6,866,986

13,020,036 15,500,000 7,056,856 17,930,209 1,440,449 6,866,986 61,814,536

Deposits Cash on Hand

4,657,635 8,625

Investments Held in Irrevocable Trust: U.S. Treasury Securities, Money Market Funds, and Corporate Bonds Total Pooled Cash and Investments

29,493,721 $

95,974,517

$

57,851,617 8,307,440 29,815,460 95,974,517

These amounts are presented in the financial statements as follows: Cash and Investments - Statement of Net Assets Cash and Investments Held by Trustee - Statement of Net Assets Cash and Investments - Statement of Fiduciary Net Assets Total Cash and Investments

$

The MSDLAF+ 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.

Credit Risk – Credit risk is defined as the risk that an issue or other counterparty will not fulfill its obligation. The investments in the U.S. Government Securities, Mutual Funds and MSDLAF+ are all rated AAA by S&P. The investments held in an irrevocable trust are held for the purposes of funding other postemployment benefits. The funds are invested in accordance with the investment policy adopted by the irrevocable trust.

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WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 3

DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Restricted Investments – These investments are held by escrow agent in accordance with escrow agreements of the District’s capital leases.

Custodial Credit Risk – For an investment, custodial risk is the risk that, in the event of failure of the counterparty, the School 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 School District’s does not have a custodial credit risk policy. The School District’s brokers do provide insurance to cover balances held in each investment account. As of June 30, 2013, the investment balances held by brokers were fully covered by insurance for each brokerage firm.

Interest Rate Risk The District does have a formal investment policy. The primary objective of the policy is to minimize the risk of loss of principal. The policy requires that all brokers used by the District acknowledge in writing that any investment purchased through that broker will comply with Minnesota State Statutes governing the investment of public funds. The policy also states that the District will diversify by type, issuer, and maturity to help reduce the risk of loss. In addition, all of the District's investments have a maturity of one year or less.

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

The individual investment issuers which individually comprise more than 5% of the District’s total investments are as follows: PMA Money Market Account - Federated NW Mutual Life Insurance Policies Mass Mutual Life Insurance Policies Minnesota Trust Term Series MSDLAF Investment Pool

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14.37% 20.47% 9.78% 26.15% 11.91%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 4

CAPITAL ASSETS Capital asset activity for the year ended June 30, 2013 was as follows: Beginning Balance Governmental Activities Capital Assets, Not Being Depreciated: Land Construction in Progress

$

$ (1,200,000) (7,253,815)

9,330,166

12,032,660

(8,453,815)

9,687,055 159,343,974 13,768,608 1,253,911

7,641,059 887,358 62,661

-

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

184,053,548

8,591,078

-

192,644,626

(5,388,975) (65,557,392) (10,561,514) (890,134)

(389,114) (4,758,819) (1,072,318) (44,288)

-

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

Total Accumulated Depreciation

(82,398,015)

(6,264,539)

-

(88,662,554)

Total Capital Assets, Being Depreciated, Net

101,655,533

2,326,539

-

103,982,072

$ 110,985,699

$ 14,359,199

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

$

Ending Balance

Decreases

12,032,660

Total Capital Assets, Not Being Depreciated

8,054,939 1,275,227

Increases

$ (8,453,815)

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

(57)

19,532 4,179,195 16,765 2,000,162 48,885

$ 6,264,539

$

6,854,939 6,054,072 12,909,011

$ 116,891,083

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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

795,000

3,190,000

12/15/2007

4.00% - 5.50%

4,725,000

2/1/2019

435,000

2,860,000

11/1/2008

3.50% - 5.00%

31,470,000

2/1/2016

4,500,000

12,950,000

5/1/2009

2.00% - 3.45%

5,205,000

2/1/2016

1,025,000

3,920,000

4/15/2010

2.00% - 3.00%

5,000,000

2/1/2020

480,000

3,595,000

5/2/2012

2.00% - 3.00%

15,800,000

2/1/2024

-

15,225,000

8,830,000

56,070,000

Bond Premium - Net

477,899

2,095,615

Capital Leases Payable

456,991

918,096

Certificates of Participation Payable

1,300,000

11,655,000

Early Retirement Incentive Payable

712,825

5,687,137

Sick Leave Payable

499,261

4,988,036

Compensated Absences Payable

486,374

486,374

$

$

Total General Obligation Bonds

$

Total

1,595,000

12,763,350

$

$

14,330,000

81,900,258

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, 2014 2015 2016 2017 2018 2019 - 2023 2024 - 2028 Total

$

$

Bonds Payable Principal Interest 8,830,000 $ 2,136,625 9,175,000 1,788,350 9,365,000 1,425,868 9,280,000 1,002,600 2,645,000 549,600 13,275,000 1,956,825 3,500,000 324,000 56,070,000

$

9,183,868

(58)

Certificates of Participations Payable Principal Interest $ 1,300,000 $ 279,306 1,135,000 226,748 725,000 194,448 740,000 178,398 755,000 162,023 3,390,000 588,414 3,610,000 223,700

Capital Leases Payable Principal Interest $ 456,992 $ 8,263 461,104 4,150 -

$ 11,655,000

$

$

1,853,037

918,096

$

12,413

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) 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.

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.

(59)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) C. Description of Long-Term Debt (Continued) 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 deferred 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 deferred facility maintenance projects included in the ten-year facility plan of the District.

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).

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.

(60)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) C. Description of Long-Term Debt (Continued) 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 one capital lease outstanding during the year which was for the leasing of 365 Apple iPads. As each individual iPad was below the District’s capitalization threshold of $5,000 there were no capital assets associated with capital lease as of June 30, 2013.

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.

D. Changes in Long-Term Debt June 30, 2012 Bonds Payable Bond Premium Certificates of Participation Payable Lease Purchase Obligations Early Retirement Incentive Sick Leave Payable Compensated Absences Payable - Net

$

$

65,135,000 2,349,744

Net Additions $

214,066

June 30, 2013

Retirements $

9,065,000 468,195

$

56,070,000 2,095,615

2,190,000 9,019 6,228,549 4,668,298

9,980,000 1,383,350 319,160 868,502

515,000 474,273 860,572 548,764

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

489,095

1,009,001

1,011,722

486,374

81,069,705

$ 13,774,079

$ 12,943,526

(61)

$

81,900,258

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 5

LONG-TERM LIABILITIES (CONTINUED) 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, 2014 2015 2016 2017 2018 Total

Minimum Lease Payments $ 196,282 191,101 175,172 111,724 37,745 $ 712,024

Expenditures under the operating leases for the year ended June 30, 2013 were $431,011.

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.

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.

(62)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 6

INTERFUND BALANCES AND TRANSFERS (CONTINUED) The District had the following interfund transfers for the year ended June 30, 2013: Transfer to Community Service Fund from General Fund - for Early Childhood Learning Program

$

Transfer to Capital Projects Fund from General Fund for Technology Levy and Alternative Facility Capital Projects Total Interfund Transfers

25,000

7,648,940 $

7,673,940

The District had no interfund receivable and payable at June 30, 2013.

NOTE 7

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.

(63)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 7

RESTRICTED FUND BALANCES (CONTINUED) Restricted and nonspendable/assigned fund balances at June 30, 2013 are as follows: Committed/ Assigned

Restricted General Fund: Restricted for Staff Development Restricted for Cooperative Revenue 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 Restricted for Projects Funded by COPs 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 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 Projects Funded by COP Nonspendable for Prepaid Items Total Capital Projects Building Construction Fund Debt Service: Restricted for Debt Service Total All Funds

$

(64)

828,462 250,000 274,277 666,428 138,106 5,408,794 116,244 364,500 814,046 220,244 9,081,101

$

72,365 81,598 2,889,790 178,491 588,935 819,591 272,097 4,902,867

1,282,222 -

2,641 71,998

7,508 1,023,557

-

650,378 2,963,665

7,308 81,947

2,403,043 7,663,807 4,107,519 -

195,050

14,174,369

195,050

1,948,293

-

28,167,428

$

5,179,864

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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 Cooperative Revenue Represents available resources restricted exclusively for cooperative programs as required by state statute.

C. Restricted for Deferred Maintenance Represents available resources restricted for deferred maintenance expenditures.

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

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

F. 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.

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

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

I.

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

(65)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

NOTE 7

RESTRICTED FUND BALANCES (CONTINUED) J. Restricted for Projects Funded by Certificates of Participation Represents available resources from the issuance of Certificates of Participation that are to be used for the associated capital projects.

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

L. Restricted for Community Education Programs Represents accumulated resources available to provide general community education programming.

M. Restricted for Capital Projects Levy Represents available resources to be used to fund technology and other capital projects.

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

O. Restricted for Projects Funded by Certificates of Participation Represents available resources from the issuance of Certificates of Participation to be used for funding designated projects.

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.

(66)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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 6.5% and 10.0%, 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: 6.5% for Coordinated Plan members and 10.5% 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, 2013, 2012 and 2011 were $3,587,010, $3,213,557 and $2,835,959, respectively, equal to the required contributions for each year as set by state statute.

(67)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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, 2013, 2012 and 2011 were $1,499,824, $1,466,180 and $1,419,506, respectively, equal to the contractually required contributions for each year as set by state statute.

(68)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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, 2013, the employees and the District contributed $3,352,623 and $2,593,830, respectively, to the plan. Included in the District’s contribution are amounts paid for severance. These contributions in the Plan totaled $1,344,875 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 2013, the District contributed $2,279,159 to the plan. The District intends to fund its contributions in future years from both the Internal Service fund and Other Postemployment Benefits Trust fund.

(69)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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

$

$

1,202,301 (1,209,852) 1,479,571 1,472,020 (2,279,159) (807,139) (20,164,200) (20,971,339)

The District’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2013 and the two preceding years are as follows:

Fiscal Year Ended 6/30/2011 6/30/2012 6/30/2013

$

Annual OPEB Cost 1,991,948 1,735,771 1,472,020

Percentage of Annual OPEB Cost Contributed 102.2% 129.1% 154.8%

Net OPEB Obligation (Asset) $ (19,659,674) (20,164,200) (20,971,339)

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%.

(70)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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, 2013 was not to exceed 27 years.

(71)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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

(72)

$

$

412,931 280,285 (374,056) 319,160 (860,572) (541,412) 6,228,549 5,687,137

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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 2013 and the two preceding years was: Fiscal Year Ended 6/30/2011 6/30/2012 6/30/2013

$

Annual Pension Cost 671,713 679,794 319,160

Percentage of Annual Pension Cost Contributed 73.3% 133.8% 269.6%

Net Pension Obligation (Asset) $ 6,458,130 6,228,549 5,687,137

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.

(73)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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.

(74)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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, 2013, there is a reserve of $9,245,413 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 $9,609,101 in cash and investments at June 30, 2013, for payment of health and dental claims.

Changes in the balances of claim liabilities during fiscal years 2013 and 2012 were as follows: 2013 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

$

1,356,540

2012 $

1,136,791

14,455,787

13,824,515

(14,165,149)

(13,604,766)

1,647,178

$

1,356,540

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.

(75)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013

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, 2013 of approximately $9,116,466.

NOTE 14 SUBSEQUENT EVENTS In July 2013, the District purchased a parcel of land from Elm Creek Golf Course, Inc. for $7,400,000. The land is adjacent to the Wayzata High School and will be used to construct additions to the existing high school. A portion of the funds used to purchase the land came from proceeds from the sale of another parcel of land that was owned by the District.

(76)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS AND OTHER PENSION BENEFITS PAYABLE JUNE 30, 2013

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

(77)

Funded Ratio (a/b) -% -

$

$

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

SUPPLEMENTARY INFORMATION

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 GENERAL FUND BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

2013 ASSETS Cash and Investments Cash and Investments in Escrow Receivables: Current Taxes Delinquent Taxes Accounts and Interest Receivable Due from Other Minnesota School Districts Due from Minnesota Department of Education Due from Federal through the Minnesota Department of Education Due from Other Governmental Units Inventory Prepaid Items Total Assets LIABILITIES AND FUND BALANCE Liabilities: Short-Term Borrowing Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Due to Other Minnesota School Districts Interest Payable Due to Other Governmental Units Property Tax Shift Adjustment Property Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Unearned Revenue Total Liabilities

$

14,337,740 1,463,684 17,495,869 535,362 107,859 195,294 28,845,443 3,143,303 279,555 84,752 514,805

$

50,913,775

$

67,003,666

$

261,073 1,933,320 3,064,388 637,609 46,317 50,602 18,824,368 263,919 372,114 25,453,710

$

20,040,000 505,754 1,946,364 2,568,315 230,180 300,425 27,656 91 18,643,558 379,535 1,500 44,643,378

$

(78)

$

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

Fund Balance: Nonspendable: Inventory Prepaid Items Restricted for: Staff Development Cooperative Revenue Deferred Maintenance Basic Skills Programs Health and Safety Operating Capital Disabled Accessibility 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 Total Liabilities and Fund Balance

17,016,679 1,606,221

2012

81,598 72,365

84,752 514,805

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

974,935 250,000 276,053 651,959 119,616 4,464,701 7,452 167,231 364,500 272,000

2,889,790

-

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

193,929 588,935 838,863 376,654 12,213,903 22,360,288

50,913,775

$

67,003,666

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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

$

35,412,650 2,285,382 78,994,184 3,342,855 120,035,071

2012 Over (Under) Final Budget

Actual Amounts

$

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

$

678,069 19,525 1,060,729 (397,706) (152,303) 1,208,314

Actual Amounts

$

34,670,055 10,340 2,877,541 77,414,109 4,095,166 119,067,211

2,774,031 955,814 195,862 179,989 8,375 53,503 4,167,574

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

51,513 (53,360) (69,783) (130,764) 25,601 (14,315) (191,108)

2,770,830 882,441 136,068 46,965 3,302 45,871 3,885,477

2,228,822 604,758 915,340 205,403 11,500 119,087

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

(3,062) 94,795 (76,456) (34,668) (3,374) (87,341)

2,070,935 732,010 739,430 138,797 51,243 44,645

4,084,910

3,974,804

(110,106)

3,777,060

39,028,939 11,009,375 2,567,652 2,901,771 302,502 188,163

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

528,526 234,269 563,283 (1,122,341) 155,651 (150,271)

38,204,697 11,144,835 2,970,156 1,763,995 343,553 62,371

55,998,402

56,207,519

(79)

209,117

54,489,607

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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

$

1,309,365 369,047 879,246 32,100 43,000 33,126

2012 Over (Under) Final Budget

Actual Amounts

$

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

$

17,282 50,318 (103,542) 27,371 (27,082) (17,619)

Actual Amounts

$

1,201,234 371,431 589,578 29,804 36,273 32,336

2,665,884

2,612,612

(53,272)

2,260,656

10,673,677 3,406,140 1,263,829 218,534 22,000 242,283

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

72,612 68,716 180,609 (122,542) 10,222 (113,307)

10,571,255 3,338,269 1,273,600 126,593 31,733 233,257

15,826,463

15,922,773

96,310

15,574,707

5,887,531 1,770,891 850,906 1,529,189 5,050 188,023

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

45,276 13,545 (338,105) (1,352,168) (5,050) (162,102)

6,558,405 1,861,069 566,303 230,418 8,041 37,473

10,231,590

8,432,986

(1,798,604)

9,261,709

2,587,710 807,380 7,630,030 462,162 22,594

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

148,705 45,802 (17,635) (177,002) 4,517 (22,464)

2,342,398 718,278 7,434,894 254,441 42,949 3,885

11,509,876

11,491,799

(18,077)

10,796,845

(80)

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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

$

4,296,636 1,546,635 2,902,010 902,100 1,052,056 51,954 10,751,391

2012 Over (Under) Final Budget

Actual Amounts

$

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

$

(321,237) (162,773) 174,799 59,685 (203,116) (20,029) (472,671)

Actual Amounts

$

3,851,406 1,321,226 2,965,334 770,136 1,353,625 115,739 10,377,466

Fiscal and Other Fixed Cost Programs: Purchased Services

307,315

318,578

11,263

296,088

Debt Service: Principal Interest and Fiscal Charges Total Debt Service

50,000 50,000

515,000 15,761 530,761

515,000 (34,239) 480,761

505,000 70,702 575,702

115,593,405

113,747,018

(1,846,387)

111,295,317

4,441,666

7,496,367

3,054,701

7,771,894

5,000 (7,673,940)

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

(2,100) 2,889,790 5,794 378,866 -

5,370 105,785 (7,264,007)

(7,668,940)

(4,396,590)

3,272,350

(7,152,852)

(3,227,274)

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 Certificates of Participation Proceeds Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance

$

FUND BALANCE Beginning of Year

$

6,327,051

619,042

22,360,288

End of Year

$

(81)

25,460,065

21,741,246 $

22,360,288

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FOOD SERVICE SPECIAL REVENUE FUND BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

2013 ASSETS Cash and Investments Receivables: Accounts and Interest Receivable Inventory Prepaid Items

$

1,547,981

2012 $

1,152 71,998 2,641

Total Assets

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

1,648,174

$

1,602,515

$

285 61,110 229,918 291,313

$

682 66,359 198,597 265,638

$

(82)

1,114 68,633 10,554

$

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

1,522,214

71,998 2,641

68,633 10,554

1,282,222 1,356,861

1,257,690 1,336,877

1,648,174

$

1,602,515

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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

$

Total Revenues

3,996,623 131,750 1,045,750

2012 Over (Under) Final Budget

Actual Amounts

$

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

$

(112,199) 5,835 157,542

Actual Amounts

$

747 3,860,359 134,689 1,075,829

5,174,123

5,225,301

51,178

5,071,624

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

1,619,330 565,730 426,900 2,495,925 17,300 154,000

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

(49,602) 14,214 70,125 (68,376) (6,265) (33,964)

1,574,125 510,073 513,578 2,462,512 13,511 27,697

Total Expenditures

5,279,185

5,205,317

(73,868)

5,101,496

Net Change in Fund Balance

$

(105,062)

19,984

FUND BALANCE Beginning of Year

$

125,046

(29,872)

1,336,877

End of Year

$

(83)

1,356,861

1,366,749 $

1,336,877

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 COMMUNITY SERVICE SPECIAL REVENUE FUND BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

2013 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

$

2,927,306

2012 $

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

Total Assets LIABILITIES 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 Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Unearned Revenue Total Liabilities

4,127,469

$

3,394,205

$

160,654 11,260 263,607 667 787,509 10,648 1,204,373 2,438,718

$

152,029 14,580 281,776 839 720,628 15,543 872,881 2,058,276

$

(84)

697,640 22,244 50,297 202,948 130,137 4,450

$

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

2,286,489

7,308

4,450

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

660,360 25,117 7,201 638,801 1,335,929

4,127,469

$

3,394,205

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013

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

$

Total Revenues

1,402,000 5,828,698 401,812

2012 Over (Under) Final Budget

Actual Amounts

$

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

$

61,583 551,703 (18,553)

Actual Amounts

$ 1,418,627 989 6,131,063 473,882

7,632,510

8,227,243

594,733

8,024,561

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

5,005,186 1,435,034 843,896 356,267 38,859 51,960

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

(9,206) 122,858 (5,230) 72,636 (19,028) 10,256

5,058,918 1,525,108 896,749 367,442 15,672 185,765

Total Expenditures

7,731,202

7,903,488

172,286

8,049,654

Excess (Deficiency) of Revenues Over (Under) Expenditures

(98,692)

323,755

422,447

OTHER FINANCING SOURCES Insurance Recovery Proceeds Transfer In

25,000

4,067 25,000

4,067 -

75,000

25,000

29,067

4,067

75,000

(73,692)

352,822

426,514

49,907

Total Other Financing Sources Net Change in Fund Balance

$

FUND BALANCE Beginning of Year End of Year

$

(85)

$

(25,093)

1,335,929

1,286,022

1,688,751

$ 1,335,929

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CAPITAL PROJECTS – BUILDING CONSTRUCTION FUND BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

ASSETS Cash and Investments Cash and Investments in Escrow Other Receivables: Accounts and Interest Receivable Prepaid Items Total Assets LIABILITIES AND FUND BALANCE Liabilities: Salaries and Compensated Absences Payable Payroll Deductions and Employer Contributions Payable Accounts and Contracts Payable Unavailable Revenue Total Liabilities Fund Balance: Nonspendable: Prepaid Items Restricted for: Capital Projects Levy Alternative Facilities Program Projects Funded by Certificates of Participation Total Fund Balance Total Fund Liabilities and Fund Balance

(86)

2013

2012

$ 10,305,085 6,701,219

$ 16,613,758 54,455

9,597 195,050

4,246 114,560

$ 17,210,951

$ 16,787,019

$

$

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

5,868 13,720 1,333,609 1,353,197

195,050

114,560

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

2,332,427 12,986,835 15,433,822

$ 17,210,951

$ 16,787,019

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

2013 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 Proceeds from Issuance of Certificates of Participation Sale of Bonds Proceeds Capital Lease Proceeds Transfer In Total Other Financing Sources Net Change in Fund Balance

$

2012 Over (Under) Final Budget

Actual Amounts

-

$

10,273 10,193 20,466

$

10,273 10,193 20,466

Actual Amounts

$

4,466 25,000 29,466

1,389,531 426,834 1,482,888 1,050,950 306,797 9,474,950

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

35,067 53,970 629,136 (149,534) (304,144) 5,535,914

1,408,513 428,286 967,691 657,014 72,923 141,025 7,197,573

14,131,950

19,932,359

5,800,409

10,873,025

(14,131,950)

(19,911,893)

(5,779,943)

(10,843,559)

7,648,940 7,648,940

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

9,815,200 1,383,350 11,198,550

15,800,000 7,189,007 22,989,007

(6,483,010)

(1,064,403)

5,418,607

12,145,448

Fund Balance - Beginning Fund Balance - Ending

$

(87)

$

15,433,822

3,288,374

14,369,419

$ 15,433,822

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DEBT SERVICE FUND BALANCE SHEET JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

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

LIABILITIES AND FUND BALANCE Liabilities: Property Taxes Levied for Subsequent Year Unavailable Revenue - Delinquent Taxes Total Liabilities Fund Balance: Restricted for: Other Purposes Total Liabilities and Fund Balance

$ 6,864,868

Other PostEmployment Benefits $

684,550

Totals 2013 $

2012

7,549,418

$ 7,819,183

5,003,413 105,652 167

603,980 6,839 15

5,607,393 112,491 182

5,494,620 163,934 53,994

$ 11,974,100

$ 1,295,384

$ 13,269,484

$ 13,531,731

$ 10,028,903 76,939 10,105,842

$

1,210,574 4,775 1,215,349

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

$ 11,042,161 116,009 11,158,170

1,868,258

80,035

1,948,293

2,373,561

$ 11,974,100

$ 1,295,384

$ 13,269,484

$ 13,531,731

(88)

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

REVENUES Local Sources: Property Tax Earnings on Investments State Sources

Final Budgeted Amounts

Regular Debt Service

$ 11,042,710 555

$ 10,138,020 1,229

11,043,265

Total Revenues EXPENDITURES Debt Service: Bond Principal Bond Interest Paying Agent Fees and Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures

10,139,249

889,807

9,065,000 2,155,661 -

8,360,000 2,238,919 5,409

11,220,661

10,604,328

(465,079)

(177,396)

(89)

(14,209)

10,559,135

705,000 144,571 425

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

227,829 5,834

8,190,000 2,390,123 121,513

849,996

11,454,324

233,663

10,701,636

-

39,811

(425,268)

40,224

2,333,337 1,868,258

11,029,056

-

(465,079)

$

$ 10,405,674 2,217 151,244

(425,268)

$

80,035

$

Actual Amounts

(14,991) 782

39,811

-

Fund Balance - Beginning Fund Balance - Ending

Total Actual Amounts

$ 11,027,719 1,337

$

$

2012 Over (Under) Final Budget

889,699 108

(177,396)

OTHER FINANCING SOURCES Bond Proceeds Net Change in Fund Balance

2013 Actual Other PostEmployment Benefits

(247,872)

(142,501)

-

512,660

$ (247,872)

370,159

2,373,561 $

1,948,293

2,003,402 $

2,373,561

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 INTERNAL SERVICE FUND COMBINING STATEMENT OF NET POSITION JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2012)

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

$

Net Position: Unrestricted Total Liabilities and Net Position

Totals 2013

2012

9,609,101 1,391,813 3,100

$

8,896,047 -

$ 18,505,148 1,391,813 3,100

$ 19,625,386 1,209,230 -

$ 11,004,014

$

8,896,047

$ 19,900,061

$ 20,834,616

$

$

-

$

$

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

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

Early Retirement Accounts

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

105,103 1,356,540 1,461,643

-

5,687,137 4,988,036 10,675,173

5,687,137 4,988,036 10,675,173

6,228,549 4,668,298 10,896,847

1,758,601

10,675,173

12,433,774

12,358,490

9,245,413

(1,779,126)

7,466,287

8,476,126

$ 19,900,061

$ 20,834,616

$ 11,004,014

(90)

$

8,896,047

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, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2012)

SelfInsurance Accounts OPERATING REVENUES Charges for Services: Health Insurance Premiums Dental Insurance Premiums Assessments to Other Funds

$ 12,338,781 1,190,752 -

Total Operating Revenues OPERATING EXPENSES Health Insurance and Claim Payments Dental Insurance and Claim Payments Early Retirement Incentive and Sick Leave Benefits Total Operating Expenses Operating Loss NONOPERATING REVENUE Earnings on Investments Change in Net Position Net Position - Beginning Net Position - Ending

Early Retirement Accounts

$

2013

$

12,338,781 1,190,752 437,424

2012

$

12,114,503 1,113,711 368,209

13,529,533

437,424

13,966,957

13,596,423

13,371,453 1,084,334 -

1,262,317

13,371,453 1,084,334 1,262,317

12,815,321 1,009,194 1,089,203

14,455,787

1,262,317

15,718,104

14,913,718

(1,751,147)

(1,317,295)

(926,254)

(824,893)

552,277

189,031

(373,977)

(635,862)

9,619,390 $

437,424

Totals

9,245,413

(91)

741,308 (1,009,839)

(1,143,264) $

(1,779,126)

836,585 (480,710)

8,476,126 $

7,466,287

8,956,836 $

8,476,126

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 INTERNAL SERVICE FUND COMBINING SCHEDULE OF CASH FLOWS YEAR ENDED JUNE 30, 2013 (WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2012)

SelfInsurance Accounts CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Interfund Services Provided Payments for Medical Fees and Insurance Claims Payments for Retirement Benefits

$ 13,458,823 (14,161,929) -

Net Cash Used by Operating Activities

NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and Cash Equivalents - Beginning

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) Decrease in Accounts Receivable (Increase) Decrease in Prepaid Items Increase in Accounts Payable Increase in Claims Payable Decrease in Liability for Early Retirement Incentives Increase (Decrease) in Sick Leave Payable

$

$

$ 13,784,374 (14,161,929) (1,483,991)

$ 13,608,967 (13,564,168) (1,533,401)

(1,158,440)

(1,861,546)

(1,488,602)

(969,409)

(926,254)

$

$

(703,106)

741,308 (1,120,238)

(652,017)

19,625,386

20,277,403

8,896,047

$ 18,505,148

$ 19,625,386

$

(1,751,147)

$ (1,317,295)

(182,583) (3,100) 6,320 290,638 (541,412) 319,738

12,544 39,007 1,591 219,749 (229,581) (214,617)

(824,893)

(333,547) $

836,585

9,865,456

(111,873) (541,412) 319,738

223,148

(92)

325,551 (1,483,991)

(150,829)

(70,710) (3,100) 6,320 290,638 $

2012

189,031

9,609,101

Totals 2013

552,277

9,759,930

Total Adjustments Net Cash Used by Operating Activities

$

(703,106)

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received

CASH AND CASH EQUIVALENTS - ENDING

Early Retirement Accounts

(1,158,440)

$

(110,399)

(171,307)

(1,861,546)

$ (1,488,602)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 UNIFORM FINANCIAL ACCOUNTING AND REPORTING STANDARDS COMPLIANCE TABLE JUNE 30, 2013

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

$ 121,249,179 113,747,018

$ 121,249,179 113,747,023

Audit-UFARS

153,963

153,963

-

828,462 274,277 138,106 250,000 5,408,794 666,428 116,244 -

828,462 274,277 138,106 250,000 5,408,794 666,428 116,244 -

-

1,398,790

1,398,796

(6)

2,889,790

2,889,790

-

1,859,114

1,859,113

1

$

Audit

(5)

11,476,097

11,476,100

(3)

5,225,301 5,205,317

5,225,301 5,205,317

-

74,639

74,639

-

1,282,222

1,282,222

-

-

-

-

8,231,310 7,903,488

8,231,310 7,903,484

4

7,308

7,308

-

1,023,557 7,508 -

1,023,557 7,508 -

-

650,378 -

650,379 -

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 Assets: 422 Net Assets 20 INTERNAL SERVICE Total Revenues Total Expenditures Net Assets: 422 Net Assets 25 OPEB REVOCABLE TRUST Total Revenues Total Expenditures Net Assets: 422 Net Assets 45 OPEB IRREVOCABLE TRUST Total Revenues Total Expenditures Net Assets: 422 Net Assets 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

$

20,466 19,932,359

(93)

UFARS

Audit-UFARS

20,466 19,932,361

$

(2)

195,050

195,050

-

2,403,043 7,663,807 4,107,519

2,403,043 7,663,807 4,107,513

6

-

-

-

-

-

-

10,139,249 10,604,328

10,139,249 10,604,328

-

-

-

-

-

-

-

1,868,258

1,868,258

-

-

-

-

17,370 8,500

17,370 8,500

-

321,792

321,792

-

28,058,601 29,586,646

28,058,601 29,586,646

-

7,466,287

7,466,287

-

-

-

-

-

-

-

4,610,301 2,428,664

4,610,301 2,428,664

-

29,477,721

29,477,721

-

889,807 849,996

889,807 849,998

-

-

-

80,035

80,035

-

-

-

-

-

AMCPU

-

Total Transfer

-

(1) -

$

(2)

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 94-101 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 102-107 These schedules contain information to help the reader assess the District’s property tax revenue.

Debt Capacity: Pages 108-111 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 112-113 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 114-116 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 Governmental Activities Net Investment in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position

2004

2005

2006

2007

$ 12,072,514 7,175,829 6,092,018

$ 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

$ 25,340,361

$ 30,413,614

$ 35,533,752

$ 44,469,880

(94)

Fiscal Year 2008

2009

2010

2011

2012

2013

$ 28,308,647 13,177,338 12,071,035

$ 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

$ 41,301,936 26,816,481 44,210,849

$ 46,152,372 27,560,100 45,130,907

$ 53,557,020

$ 97,579,713

$ 96,857,189

$ 104,409,196

$ 112,329,266

$ 118,843,379

(95)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2004 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

$

3,366,913 3,118,392 39,213,680 560,216 10,679,661 6,608,831 6,407,440 7,282,514 370,560 3,770,083 5,031,007 6,618,972 66,817

2005

$

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

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

$ 93,095,086

$ 99,697,357

$ 104,551,624

$ 114,244,364

$

$

$

$

995,719 5,774 61,513 156,740 3,289,915 3,394,310 8,973,948 2,192,239

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

$ 19,070,158

$ 21,907,337

$ 21,828,286

$ 22,662,889

Net (Expense)/Revenue Governmental Activities

$ (74,024,928)

$ (77,790,020)

$ (82,723,338)

$ (91,581,475)

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

$ 18,417,214 1,044,107 10,712,909 48,445,019 2,801,494 1,411,028 $ 82,831,771

$ 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

$

$

$

$

Change in Net Position Net Position - Beginning Net Position - Ending

8,806,843 16,533,518 $ 25,340,361

Notes: 1) The District implemented GASB 27 and 45 in fiscal year 2009.

(96)

5,073,253 25,340,361 $ 30,413,614

5,120,138 30,413,614 $ 35,533,752

8,936,128 35,533,752 $ 44,469,880

Fiscal Year 2008

$

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

2009

$

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

2010

$

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

2011

$

2012

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

2013

$

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 -

$ 120,033,820

$ 88,616,583

$ 135,566,638

$ 133,123,936

$ 135,824,071

$ 141,520,391

$

$

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

$ 22,426,028

$ 24,019,849

$

31,425,174

$

26,465,518

$

28,655,623

$

27,967,619

$ (97,607,792)

$ (64,596,734)

$ (104,141,464)

$ (106,658,418)

$ (107,168,448)

$ (113,552,772)

$ 28,113,965 1,300,614 9,560,963 62,375,991 3,514,255 1,829,144 $ 106,694,932

$ 30,249,790 1,084,553 9,327,038 64,742,972 1,574,398 1,640,676 $ 108,619,427

$

32,471,599 1,182,981 9,539,122 58,622,111 344,100 1,259,027 $ 103,418,940

$

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

$

$

$ 44,022,693 53,557,020 $ 97,579,713

$

$

$

$

150 1,121,653 987 28,773 416,716 3,777,099 4,606,255 12,474,395 -

9,087,140 44,469,880 $ 53,557,020

$

(722,524) 97,579,713 96,857,189

7,552,007 96,857,189 $ 104,409,196

(97)

7,920,070 104,409,196 $ 112,329,266

35,975,717 1,458,919 10,992,579 67,408,720 771,106 1,692,690 1,767,154 $ 120,066,885 6,514,113 112,329,266 $ 118,843,379

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)

Fiscal Year 2004 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

$

2005

7,197,112 5,029,590 $ 12,226,702

$

$

$

752,675 27,288,503 -

$

2006

2007

1,694,444 6,286,941 7,981,385

$

7,992,026 6,981,529 $ 14,973,555

$

667,749 30,504,975 -

$

$

923,717 29,961,070

7,232,452 9,404,081 $ 16,636,533

855,805 40,131 1,152,266 2,341,412 -

995,145 11,277 555,535 1,383,749 -

$ 32,430,792

$ 34,118,430

$ 33,863,115

$

$ 44,657,494

$ 42,099,815

$ 48,836,670

$ 26,294,876

Notes: 1) The District implemented GASB 54 in 2011. Only 2010 amounts were restated.

(98)

1,095,034 20,322 (266,957) 2,129,929 -

1,042,410 6,844,131 721,326 (8,817) (1,036,240) 2,095,533 9,658,343

Fiscal Year 2008 $

2009

2010

2011

2012

2013

7,251,294 11,800,550 $ 19,051,844

$

7,788,448 13,507,742 $ 21,296,190

$

1,063,623 6,551,165 3,583,266 11,572,351 $ 22,770,405

$

1,129,123 7,103,320 1,983,458 11,525,345 $ 21,741,246

$

599,557 7,276,447 2,270,381 12,213,903 $ 22,360,288

$

$

$

$

$

$

$

$

986,349 49,371 -

618,249 318,188 -

-

974,255 62,259 (1,449,664) 2,261,514 -

1,262,205 305,572 (616,143) 2,067,838 -

2,884,084

3,955,909

1,437,962 940,094 5,756,834 1,853,801 $ 10,437,868

$

$ 25,252,099

$ 33,208,273

$ 29,685,793

$ 21,935,928

$

449,177

839,243 1,306,291 1,284,584 2,540,916 2,003,402 (29,889) 7,944,547

(99)

-

153,963 9,081,101 2,889,790 1,859,114 11,476,097 $ 25,460,065

-

198,197

276,997

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

$ 42,840,477

$ 44,823,389

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 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) Sale of Equipment Sale of Real Property Insurance Recovery Proceeds Sale of Bond Proceeds 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

2004

2005

2006

2007

$ 30,756,316 1,808,248 9,265,267 56,961,655 2,184,231 100,975,717

$ 27,744,090 1,599,448 11,300,232 60,089,894 2,652,734 103,386,398

$ 23,323,963 2,038,666 11,397,781 68,788,226 2,653,215 108,201,851

$ 36,290,042 1,809,962 11,481,193 68,884,821 2,625,099 121,091,117

3,004,214 3,118,392 36,818,249 552,176 10,679,661 6,079,368 6,407,440 9,285,703 370,560 4,192,288 5,056,930 1,436,071

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

4,905,000 7,106,529 99,012,581

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

1,963,136

(2,509,084)

(263,392)

(123,890)

1,275 24,969 3,645,000 (9,330,000) 581,796 (581,796) (5,658,756)

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%

$ (3,695,620)

12.3%

(100)

$

(55,995)

11.9%

$

Fiscal Year 2008

2009

2010

2011

2012

2013

$ 38,897,378 1,612,598 11,842,484 72,183,854 2,666,532 127,202,846

$ 40,487,682 798,831 12,327,794 74,289,718 3,777,782 131,681,807

$ 43,114,189 111,659 12,394,109 67,557,932 11,350,924 134,528,813

$ 60,312,279 37,490 13,008,028 60,586,004 6,150,431 140,094,232

$ 46,494,356 18,759 12,893,963 78,173,924 5,170,995 142,751,997

$ 48,582,021 29,798 13,621,129 79,118,659 4,393,844 145,745,451

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

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

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

7,863,889

7,841,272

12,957,206

21,516,463

5,990,000 4,073,025 126,349,741

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

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%

$

(1,955,703)

1,552,887

(3,532,322)

(3,269,131)

(12,497,055)

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 10,194,066 1,383,350 7,673,940 (7,673,940) 14,479,967

3,316,171

8.1%

$

7,956,174

$ (3,522,480)

8.0%

8.4%

(101)

$ 13,154,684

8.5%

$

1,982,912

8.8%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 NET TAX CAPACITY AND VALUATION OF ALL TAXABLE PROPERTY (UNAUDITED)

Fiscal Year 2004

Taxable Market Value

Net Tax Capacity $

73,395,787

$

Percent Tax Capacity of Estimated Market Value

6,570,520,400

1.1%

2005

80,068,560

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%

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.

(102)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

ISD No. 284 23.264 22.150 20.706 21.893 20.245 19.668 20.406 23.311 24.034 25.325

Corcoran 30.922 28.870 27.966 29.275 30.703 30.213 30.677 32.995 37.041 39.617

Maple Grove

Medicine Lake

Medina

Minnetonka

35.503 33.241 30.677 30.272 30.352 29.483 31.422 33.845 36.890 39.640

45.050 41.820 38.580 35.252 30.138 30.580 33.835 34.945 38.677 36.548

19.529 17.164 16.339 16.105 15.351 15.434 16.636 17.241 18.977 21.342

30.945 29.878 28.810 28.597 28.416 27.567 29.247 30.686 33.705 35.595

670,595 690,256 830,990 943,652 1,000,843 1,461,662 1,620,222 1,913,091 2,117,238 2,255,318 2,523,404

195,590 185,838 193,898 200,169 228,764 307,718 324,044 355,924 414,242 368,215 380,891

1,033,834 1,115,030 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

5,420,644 4,831,795 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

COUNTY AUDITOR'S GROSS SPREAD LEVIES: 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

27,941,462 26,548,323 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

83,824 79,645 83,099 85,787 85,787 115,394 121,517 133,471 138,081 138,081 142,834

Note: Above tax rates are used to levy City, County, and School District taxes.

(103)

Orono

Plymouth

Wayzata

Hennepin County

Special Districts

19.870 17.637 16.252 15.316 14.269 13.580 13.183 13.677 14.991 16.283

24.198 23.922 23.132 23.197 23.751 23.344 24.854 25.495 27.490 28.716

28.233 25.558 24.240 22.224 20.365 20.308 19.415 20.358 23.032 24.274

50.607 47.324 44.172 41.016 39.110 38.571 40.413 42.640 45.840 48.231

7.757 7.488 7.382 6.448 7.310 8.801 7.154 8.138 9.172 9.523

335,298 345,128 360,096 371,742 400,337 500,042 526,572 622,867 598,350 598,350 571,337

17,044,292 16,221,025 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

3,157,385 3,079,605 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

461,447,003 485,443,960 495,716,030 515,379,632 535,872,783 565,245,672 602,274,631 644,324,515 676,166,665 669,404,998 668,415,787

61,050,104 68,804,783 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

(104)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)

Fiscal Year 2013 Taxpayer Ridgedale Joint Venture Carlson Real Estate Co., Inc. KBS II 601 Tower LLC Talcott III Atria LLC Rreef America REIT II Corp GS Park Place LLC TCA R E LLC Plymouth Corp Center DE LLC Wayzata Boatworks CSFB 2004 Pinnacle/Vicksburg Village

Type of Property Commercial Commercial Commercial Commercial Apartment Apartment Commercial Industrial Commercial Apartment

Total Total District Net Tax Capacity

Net Tax Capacity $

2,359,250 2,044,464 887,462 812,646 542,500 500,000 499,250 476,226 387,250 383,663

2.15% 1.86% 0.81% 0.74% 0.49% 0.45% 0.45% 0.43% 0.35% 0.35%

$

8,892,711

8.09%

$ 111,127,795

Fiscal Year 2004 Taxpayer Carlson Real Estate Co. Ridgedale Joint Venture EQR - Flatlands LLC Teachers Insurance & Annuity Assoc.

3033 Campus - VEF III LLC Vicksburg Village Bay Holdings, LLC The May Department Stores BH Management Services CCMB Serving

Percent of Total Tax Capacity

Type of Property Commercial/Residential Shopping Mall Apartment Commercial Commercial Apartment Commercial Retail Apartment Commercial

Total Total District Net Tax Capacity

Net Tax Capacity $

2,471,640 2,134,950 891,250 714,250 490,910 400,800 314,250 290,810 257,300 251,710

3.37% 2.91% 1.21% 0.97% 0.67% 0.55% 0.43% 0.40% 0.35% 0.34%

$

8,217,870

11.20%

$

74,216,800

SOURCE: Hennepin County Department of Property Tax and Public Records NOTE: Fiscal Year 2013 information was obtained from the Official Statement associated with the District's 2013A Certificates of Participation Issue (Prepared by Ehlers)

(105)

Percent of Total Tax Capacity

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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Operating Tax Levy $

14,671,461 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

Debt Tax Levy $ 10,555,419 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

Total Tax Levy $

25,226,880 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

Source: Minnesota Department Of Education School Tax Reports; Hennepin County School Tax Settlement Reports.

(106)

$

25,093,540 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

99.5% 99.5% 99.4% 98.3% 98.1% 98.0% 98.4% 98.2% 98.1% 99.4%

Total Collections to Date Total Percentage Tax of Collection Levy

Collections in Subsequent Years $

23,576 118,333 130,751 204,547 263,500 454,331 367,266 220,001 272,720 N/A

$

25,117,116 26,349,865 27,168,657 35,267,942 36,263,031 38,330,919 42,130,449 43,057,705 42,661,189 44,975,922

99.6% 99.9% 99.9% 98.9% 98.8% 99.2% 98.4% 98.2% 98.1% 99.4%

Outstanding Delinquent Taxes $

(107)

109,764 19,483 20,891 410,049 430,157 307,829 305,755 576,461 813,654 277,642

Percentage of Levy Outstanding 0.4% 0.1% 0.1% 1.1% 1.2% 0.8% 0.7% 1.3% 1.9% 0.6%

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Notes:

Governmental Activities General Certificates Obligation of Bonds Participation $ 121,695,000 116,375,000 110,865,000 82,760,000 69,785,000 67,325,000 65,626,000 57,525,000 65,135,000 56,070,000

$

3,645,000 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

Total Primary Government

Percentage of Personal Income

$ 125,340,000 120,020,000 114,190,000 85,760,000 72,450,000 69,645,000 68,841,000 60,220,000 67,325,000 67,725,000

-% -

Per Capita $

2,275 2,102 2,000 1,497 1,265 1,193 1,159 1,014 1,122 1,119

Percentage of Estimated Actual Value Taxable Property 1.90% 1.66% 1.42% 1.60% 1.60% 1.60% 1.60% 0.56% 0.68% 0.69%

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.

(108)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT JUNE 30, 2013 (UNAUDITED)

Taxing Unit Hennepin County (2) City of Corcoran (3) City of Maple Grove (4) City of Medina (5) City of Minnetonka (6) City of Orono (7) City of Plymouth (8) City of Wayzata (9) Metropolitan Council (10) Three Rivers Park District (12) Total Overlapping Debt

Fiscal Year 2013 Adjusted Taxable Net Tax Capacity

% In District (4)

$ 1,397,609,366 7,054,041 79,492,980 13,782,351 83,285,649 28,900,614 97,107,546 15,235,257 3,088,477,312 1,082,056,515

7.8448% 4.1223% 7.5633% 48.9822% 21.5616% 4.4268% 63.1828% 99.2579% 3.5500% 10.6863%

TOTAL DEBT - INCLUDES BOTH DIRECT AND OVERLAPPING DEBT

District's Proportionate Share

Total G.O. Debt 686,885,000 5,230,000 93,175,000 9,940,000 8,045,000 7,720,000 24,490,000 7,910,000 210,135,000 60,620,000

(2) $

$

53,884,754 215,596 7,047,105 4,868,831 1,734,631 341,749 15,473,468 7,851,300 7,459,793 6,478,035 106,170,981

$

160,372,724

(3)

(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: Hennepin County Department of Property Tax and Public Records / Ehlers Official Statement for ISD284 Certificates of Participation, Series 2013A

(109)

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 2004

$

92,065,085

% of Net Debt to Net Tax Capacity

Estimated Population (2)

73,395,787

125.44%

55,095

Net Tax Capacity (1) $

Net Debt per Capita $

1,671

2005

84,486,276

80,068,560

105.52%

55,855

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

NOTES: (1) Net Bonded Debt and Net Tax Capacity data is taken from other schedules within this Statistical Section.

(2) Estimated population is from District records.

(3) The Indicated Market Value is calculated by dividing the taxable market value ($10,679,667,300) by the sales ratio (96.0%).

(4) 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.

(5) The legal debt margin is calculated by subtracting outstanding net bonded debt from the legal debt limit.

(110)

Percent Bonded Debt to Debt Limit

Indicated Market Value (3)

Legal Debt Limit (4)

Legal Debt Margin (5)

$ 7,693,817,799

$ 1,154,072,670

$ 1,062,007,585

7.98%

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%

(111)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED)

Fiscal Year

Population

Personal Income

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

55,095 57,106 57,106 57,293 57,293 58,355 59,417 59,417 60,017 60,517

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Per Capita Personal Income

School Enrollment

Unemployment Rate

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

9,704 9,710 9,825 9,969 10,007 10,196 10,280 10,511 10,544 10,657

480.0% 3.9 3.7 4.3 5.1 8.3 6.7 7.0 5.7 5.1

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 Security N/A = Not available.

(112)

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)

2013 Data

Employer

Product/Service

United Health Group Carlson Companies Cargill Inc. ISD No. 284 - Wayzata Public Schools TCF National Bank New Horizon Enterprises, Inc. Nilfisk-Advance, Inc. Medivators Inc. Polaris Industries Life Time Fitness

Medical/Health Insurance Services Hospitality Industry - Corporate Headquarters Agribusiness Public Education Financial Institution Child Care Services Floor Machines Manufacturer Surgical and Medical Instruments Manufacturer Manufacturing - Medical Instruments Physical Fitness Facilities

Approximate Number of Employees 6,500 4,500 2,180 1,488 1,000 550 450 420 380 325

Source: Information above was obtained from the Official Statement prepared by Ehlers for the 20013A Certificates of Participation issued by the District in February, 2013.

2004 Data:

Employer

Product/Service

Carlson Companies Hospitality Industry - Corporate Headquarters SciMed Life Systems, Inc. Disposable Medical Products Cargill Inc. Corporate Headquarters - Agribusiness ISD No. 284 - Wayzata Public Schools Public Education Allina Health Systems Insurance Advance Circuits, Inc. Printed Circuits Independent School District 284 Public Education Prudential Insurance Company General Insurance DatacCard Corporation Embossing Machines Nilfisk-Advance Floor and Carpet Cleaning Equipment Osmonics Water Purification Services Value Rx Health Services Pfizer, Inc. Measuring and Controlling Devices Opportunity Partners Inc. Job Training and Related Services Musicland Stores Retail Music Stores American Medical Systems Medical Technology Source: Survey of individual employers, March, 2004. Information obtained from the Official Statement associated with the District's 2004B GO 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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Approximate Number of Employees 3,000 3,000 2,000 1,375 1,200 1,200 1,087 1,050 817 650 625 620 480 430 425 400

WAYZATA PUBLIC SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 284 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE JUNE 30, 2013 AND 2012 (UNAUDITED)

2013 Administration Principals Associate Principals Unaffiliated Total Administration

2012 11.0 8.0 37.2 56.2

11.0 8.0 36.1 55.1

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

153.4 132.5 191.0 8.7 2.0 8.0 3.7 80.6 63.3 643.2

158.8 126.3 189.7 8.0 2.0 6.0 3.1 79.4 65.2 638.5

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

20.5 7.1 0.3 13.0 15.5 3.0 44.9 104.3

19.5 7.0 0.3 13.0 10.5 3.0 43.6 96.9

Support Services Clerical/Secretarial Custodial Food Service Paraprofessionals [6 hrs = 1.0 FTE] Unaffiliated Specialists Unaffiliated Support Staff Total Support Services

48.0 73.0 43.8 254.2 20.8 5.0 444.8

46.0 74.4 42.4 256.8 19.5 6.0 445.1

1,248.5

1,235.5

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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

9,704 9,710 9,825 9,969 10,007 10,196 10,377 10,511 10,544 10,657

$ 85,564,981 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

Cost per Pupil $

8,817 8,953 9,340 10,072 10,687 11,114 10,953 11,187 11,550 11,705

Percentage Change

Teaching Staff

Pupil– Teacher Ratio

Percentage of Students Receiving Free or Reduced-Price Meals

(3.3)% 1.5 % 4.3 % 7.8 % 6.1 % 4.0 % (1.4)% 2.1 % 3.2 % 1.3 %

N/A 381 392 437 456 457 458 469 475 477

N/A 25.5 25.1 22.8 21.9 22.3 22.7 22.4 22.2 22.3

8.3 % 8.9 10.5 10.8 13.0 12.5 13.2 14.4 14.6 14.3

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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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 Enrollment High School Peony (1997) Square Feet Capacity Enrollment

2004

2005

2006

2007

Fiscal Year 2008 2009

2010

2011

2012

2013

59,720 530 531

59,720 530 531

59,720 530 503

59,720 530 498

59,720 530 580

59,720 530 621

59,720 530 646

59,720 642 671

59,720 530 653

59,720 530 653

80,710 630 659

80,710 630 661

80,710 630 641

80,710 630 627

80,710 630 678

80,710 630 666

80,710 630 652

80,710 698 692

80,710 630 655

80,710 630 655

72,007 680 644

72,007 680 656

72,007 680 637

72,007 680 640

72,007 680 624

72,007 680 632

71,816 680 647

71,816 671 608

71,816 680 726

71,816 680 726

83,000 680 742

83,000 680 747

83,000 680 764

83,000 680 779

83,000 680 659

83,000 680 697

83,000 680 768

83,000 743 806

83,000 680 717

83,000 680 717

80,786 475 479

80,786 475 447

80,786 475 458

80,786 475 446

80,786 475 459

85,490 475 480

85,490 475 498

85,490 556 511

85,490 475 504

85,490 475 504

81,000 680 611

81,000 680 687

81,000 680 665

81,000 680 707

81,000 680 656

81,000 680 719

81,000 680 738

81,000 805 765

81,000 680 866

81,000 680 866

64,983 575 514

64,983 575 502

64,983 575 481

64,983 575 519

64,983 575 553

64,983 575 571

64,983 575 586

64,983 600 579

64,983 575 563

64,983 575 563

145,711 800 734

145,711 800 732

145,711 800 718

145,711 800 734

145,711 800 732

145,711 800 747

146,111 800 777

146,111 769 763

146,111 800 821

146,111 800 821

167,000 900 705

167,000 900 691

167,000 900 727

167,000 900 723

167,000 900 744

167,000 900 737

167,000 900 729

167,000 790 719

167,000 900 744

167,000 900 744

308,568 1700 850

308,568 1700 836

308,568 1700 880

308,568 1700 885

308,568 1700 895

308,568 1700 903

308,568 1700 887

308,568 932 942

308,568 1700 1034

308,568 1700 1034

487,000 3200 2950

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 3265

487,432 3200 3265

Note: Information above was obtained from District records. Enrollment data is as of October 1, 2010.

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