1. education
2. school

Municipal Secondary Market Disclosure Information Cover Sheet
This cover sheet should be sent with all submissions made to the Municipal Securities Rulemaking
Board, Nationally Recognized Municipal Securities Information Repositories, and any applicable
State Information Depository, whether the filing is voluntary or made pursuant to Securities and
Exchange Commission rule 15c2–12 or any analogous state statue.
See sec.gov/info/municipal/nrmsir.htm for list of current NRMSIRs and SIDs
IF THIS FILING RELATES TO A SINGLE BOND ISSUE:
Provide name of bond issue exactly as it appears on the cover of the Official Statement (please include
name of state where issuer is located):
Provide nine–digit CUSIP* numbers if available, to which the information relates:
IF THIS FILING RELATES TO ALL SECURITIES ISSUED BY THE ISSUER OR ALL SECURITIES OF A SPECIFIC CREDIT OR ISSUED UNDER A SINGLE INDENTURE:
Issuer’s Name (please include name of state where Issuer is locate): Davis School District, Davis
County, Utah
Other obligated Person’s Name (if any):
(Exactly as it appears on the Official Statement Cover)
Provide six–digit CUSIP* number(s), if available, of Issuer: 239019
*(Contact CUSIP’s Municipal Disclosure Assistance Line at 212.438.6518 for assistance with obtaining the proper CUSIP numbers.)
TYPE OF FILING:
; Electronic (number of pages attached)
145
If information is also available on the Internet, give URL:
† Paper (number of pages attached)
WHAT TYPE OF INFORMATION ARE YOU PROVIDING? (Check all that apply)
A. ; Annual Financial Information and Operating Data pursuant to Rule 15c2–12
(Financial information and operating data should not be filed with MSRB.)
Period Covered: January 31, 2009
B. ; Audited Financial Statements or CAFR pursuant to Rule 15c2–12
Fiscal Period Covered: June 30, 2008
C. † Notice of Material Event pursuant to Rule 15c2–12 (Check as appropriate)
1. † Principal and interest payments
6. † Adverse tax opinions or events afdelinquencies
fecting the tax–exempt status of
2. † Non–payment related defaults
the security
3. † Unscheduled draws on debt ser7. † Modifications to the rights of sevice reserves reflecting financial
curity holders
difficulties
8. † Bond calls
4. † Unscheduled draws on credit en9. † Defeasances
hancements reflecting financial
10. † Release, substitution, or sale of
difficulties
property securing repayment of
5. † Substitution of credit or liquidity
the securities
providers, or their failure to per11. † Rating changes
form
D. † Notice of Failure to Provide Annual Financial Information as Required
E. † Other Secondary Market Information (Specify):
I hereby represent that I am authorized by the issuer or obligor or its agent to distribute this information
publicly:
Issuer Contact:
Title Vice President
Name Eric Pehrson
Employer Zions Bank Public Finance
Address One S Main St 18th Fl
Telephone 801.844.7373
Email Address
[email protected]
City SLC
State UT
Zip Code 84133
Fax 801.844.4484
Issuer Web Site Address: www.zionsbankpf.com
Dissemination Agent Contact, if any:
Title
Name
Employer
Address
Telephone
Email Address
City__________ State
Fax
Relationship to Issuer
Zip Code
Obligor Contact, if any:
Title Business Administrator
Name Bruce D Williams
Employer Davis School District
Address 45 E State St
Telephone 801.402.5256
Email Address
[email protected]
City Farmington State UT
Fax 801.402.5249
Obligor Web Site Address
Investor Relations Contact, if any:
Name
Telephone
Title
Email Address
ii
Zip Code 84025
davis.k12.ut.us
Supplemental
Continuing Disclosure Memorandum
Summary of Debt Structure and Financial Information
SEC Rule 15c2–12
For
Davis School District
Davis County, Utah
Filed with
DisclosureUSA.org
Submitted and dated as of January 15, 2009
(Submission required by January 31, 2009)
Table Of Contents
Page
GENERAL.................................................................................................................................................... 1
Contact Person For The District................................................................................................................ 1
The Issues.................................................................................................................................................. 1
$40,525,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building and Refunding Bonds (Utah School Bond Guaranty Program,
Series 1999....................................................................................................................................... 1
$10,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2001 ............... 3
$27,240,000 Board of Education of Davis School District Davis County, Utah General
Obligation Refunding Bonds (Utah School Bond Guaranty Program, Series 2002A ..................... 4
$42,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2002B ............ 5
$38,930,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2003 ............... 6
$55,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2003B ............ 7
$52,200,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2005A ............ 9
$24,905,000 Board of Education of Davis School District Davis County, Utah General
Obligation Refunding Bonds (Utah School Bond Guaranty Program, Series 2005B.................... 10
$47,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2006 ............. 11
$55,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2007 ............. 12
$64,000,000 Board of Education of Davis School District Davis County, Utah General
Obligation School Building Bonds (Utah School Bond Guaranty Program, Series 2008)............ 13
DEBT STRUCTURE OF DAVIS SCHOOL DISTRICT, DAVIS COUNTY, UTAH ................................ 15
Outstanding General Obligation Bonded Indebtedness .......................................................................... 15
Debt Service Schedule of Outstanding General Obligation Bonds By Fiscal Year ................................ 16
Other Financial Considerations; Historical Tax And Revenue Anticipation Note Borrowing................ 17
Overlapping And Underlying General Obligation Debt ......................................................................... 18
Debt Ratios.............................................................................................................................................. 19
General Obligation Legal Debt Limit And Additional Debt Incurring Capacity .................................... 19
FINANCIAL INFORMATION REGARDING DAVIS SCHOOL DISTRICT, DAVIS COUNTY,
UTAH.......................................................................................................................................................... 20
Statement of Net Assets .......................................................................................................................... 21
Statement of Activities ............................................................................................................................ 22
Balance Sheet/General Fund................................................................................................................... 23
Statement of Revenues, Expenditures and Changes in Fund Balance/General Fund ............................. 24
Historical Tax Rates ................................................................................................................................ 25
Comparative Total Property Tax Rates Within Davis County ................................................................ 26
Taxable, Fair Market And Market Value Of Property ............................................................................ 26
Historical Summaries of Taxable Value of Property ............................................................................... 27
Tax Collection Record ............................................................................................................................ 28
Some Of The Largest Taxpayers ............................................................................................................. 28
THE DISTRICT’S COMPREHENSIVE ANNUAL FINANCIAL REPORT ............................................ 29
ii
GENERAL
Contact Person For The District
As of the date of this Supplemental Continuing Disclosure Memorandum, the chief contact person for
the Board of Education (the “Board”) of Davis School District, Davis County, Utah (the “District”) is:
Bruce D. Williams, Business Administrator
[email protected]
Davis School District
Administration Center
45 E State St
Farmington UT 84025
801.402.5256 | f 801.402.5249
The Board maintains an internet site that may be accessed at davis.k12.ut.us.The information available at this internet site is provided by the Board in the course of its normal operations and has not necessarily been reviewed for accuracy or completeness. Such information is not a part of this Supplemental
Continuing Disclosure Memorandum
When used herein the terms “Fiscal Year[s]” or “Fiscal Year[s] End[ed][ing] June 30, 20YY” shall refer to the year ended or ending on June 30 of the year indicated and beginning on July 1 of the preceding
calendar year.
The Issues
The Board of Education (the “Board”) of Davis School District, Davis County, Utah (the “District”)
is providing continuing disclosure on the following 11 issues:
1.
$40,525,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building and Refunding Bonds
(Utah School Bond Guaranty Program, Series 1999
Bonds dated: April 15, 1999—Bonds issued on: May 18, 1999
CUSIP numbers on the Bonds are provided below.
The 1999 Bonds, as defined herein, were awarded pursuant to electronic competitive bidding held via
the Bloomberg Terminal service on April 20, 1999 to First Security Capital Markets, Inc., Salt Lake City,
Utah, as Senior Manager; with First Southwest Company, Dallas, Texas; Harris Trust & Savings Bank,
Chicago, Illinois; and NationsBank, Seattle, Washington; as Co–Managers; and other members of a syndicate; at a “true interest rate” of 4.38%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $40,525,000 General Obligation School Building and Refunding
Bonds (Utah School Bond Guaranty Program), Series 1999, dated April 15, 1999 (the “1999 Bonds”),
were issued by the Board as fully–registered bonds in book–entry only form, registered in the name of
1
Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). DTC is
acting as securities depository for the 1999 Bonds.
Payment Dates. Principal of and interest on the 1999 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank National Association, Corporate Trust Services, in Salt Lake City,
Utah (“U.S. Bank”), as Paying Agent, to the registered owners thereof, currently DTC.
Redemption Provisions. The 1999 Bonds maturing on or prior to June 1, 2009, are not subject to call
and redemption prior to maturity. The 1999 Bonds maturing on or after June 1, 2010, are subject to redemption at the option of the District on June 1, 2009, and on any date thereafter prior to maturity in
whole or in part, from such maturities or parts thereof as may be selected by the District and by lot within
each maturity if less than the full amount of any maturity is to be redeemed, upon not less than 30 days
prior notice, at a redemption price equal to 100% of the principal amount of the 1999 Bonds to be redeemed, plus accrued interest thereon to the date fixed for redemption, but without premium.
Current Maturity Schedule.
Current principal outstanding: $9,160,000
Original issue amount: $40,525,000
Dated: April 15, 1999
Due
June 1
2009…….
2010…….
2011…….
CUSIP
239019
RK 0
RL 8
RM 6
Due: June 1, as shown below
Principal
Amount
Original
Interest
Rate
Due
June 1
$6,205,000 4.375%
2,955,000 4.375
3,080,000
4.50
2012…….
2013…….
CUSIP
239019
RN 4
RP 9
Principal
Amount
$3,220,000
3,365,000
Original
Interest
Rate
4.50%
4.50
(Strikethrough) These maturities were refunded by the 2005B Bonds, as hereinafter defined.
Not Bank Qualified Obligations. The 1999 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 1999 Bonds are general obligations of the Board payable from the proceeds of ad
valorem taxes to be levied annually without limitation as to rate or amount on all of the taxable property
in the District, fully sufficient to pay the 1999 Bonds as to both principal and interest.
State of Utah Guaranty. Payment of the principal of and interest on the 1999 Bonds when due is guaranteed by the full faith and credit and unlimited ad valorem taxing power of the State of Utah (the
“State”) under the provisions of the Utah School Bond Guaranty Act (the “Guaranty Act”). The Guaranty
Act establishes the Utah School Bond Default Avoidance Program (the “Utah School Bond Guaranty Program”).
2
2.
$10,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2001
Bonds dated: July 15, 2001—Bonds issued on: August 15, 2001
CUSIP numbers on the Bonds are provided below.
The 2001 Bonds, as defined herein, were awarded pursuant to electronic competitive bidding held via
the Bloomberg and Parity electronic bidding systems on July 31, 2001 to Hutchinson, Shockey, Erley &
Co., Chicago, Illinois, at a “true interest rate” of 4.26%. Zions Bank Public Finance, Salt Lake City, Utah,
acted as Financial Advisor.
Background Information. The $10,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2001, dated July 15, 2001 (the “2001 Bonds”), were issued by the Board
as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for
DTC. DTC is acting as securities depository for the 2001 Bonds.
Payment Dates. Principal of and interest on the 2001 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently DTC.
Redemption Provisions. The 2001 Bonds maturing on or before June 1, 2011, are not subject to optional redemption prior to maturity. The 2001 Bonds maturing on or after June 1, 2012, are subject to redemption at the option of the Board on December 1, 2011, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as may be selected by the Board at a redemption
price equal to 100% of the principal amount of the 2001 Bonds to be redeemed, plus accrued interest
thereon to the redemption date.
Current Maturity Schedule.
Current principal outstanding: $2,420,000
Original issue amount: $10,000,000
Dated: July 15, 2001
Due
June 1
2009…….
2010…….
2011…….
2012…….
CUSIP
239019
SP 8
SQ 6
SR 4
SS 2
Due: June 1, as shown below
Principal
Amount
$445,000
465,000
480,000
505,000
Original
Interest
Rate
Due
June 1
4.25 %
4.25
4.375
4.40
2013…….
2014…….
2015…….
2016…….
CUSIP
239019
ST 0
SU 7
SV 5
SW 3
Principal
Amount
$525,000
550,000
575,000
605,000
Original
Interest
Rate
5.00%
5.00
5.00
5.00
(Strikethrough) These maturities were refunded by the 2005B Bonds, as hereinafter defined.
Not Bank Qualified Obligations. The 2001 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
3
Security. The 2001 Bonds are general obligations of the Board payable from the proceeds of ad
valorem taxes to be levied annually without limitation as to rate or amount on all of the taxable property
in the District, fully sufficient to pay the 2001 Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2001 Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
3.
$27,240,000
Board of Education of Davis School District
Davis County, Utah
General Obligation Refunding Bonds
(Utah School Bond Guaranty Program, Series 2002A
Bonds dated: March 1, 2002—Bonds issued on: April 11, 2002
CUSIP numbers on the Bonds are provided below.
The 2002A Bonds, as defined herein, were awarded on March 14, 2002, at a negotiated sale to
George K. Baum & Company, Kansas City, Missouri and Wells Fargo Brokerage Services, LLC, San
Francisco, California, at a “true interest rate” of 4.22%. Zions Bank Public Finance, Salt Lake City, Utah,
acted as Financial Advisor.
Background Information. The $27,240,000 General Obligation Refunding Bonds (Utah School Bond
Guaranty Program), Series 2002A, dated March 1, 2002 (the “2002A Bonds), were issued by the Board as
fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for
DTC. DTC is acting as securities depository for the 2002A Bonds.
Payment Dates. Principal of and interest on the 2002A Bonds (interest payable June 1 and December 1 of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently
DTC.
Redemption Provisions. The 2002A Bonds are not subject to call and redemption prior to maturity.
Current Maturity Schedule.
Current principal outstanding: $15,595,000
Original issue amount: $27,240,000
Dated: March 1, 2002
Due
June 1
2009…....
2010……
2011……
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
TC 6
TD 4
TE 2
$3,640,000
3,790,000
600,000
Original
Interest
Rate
Due
June 1
4.25%
4.50
4.50
2011……
2012……
2012……
CUSIP
239019
TG 7
TF 9
TH 5
Principal
Amount
$3,365,000
1,350,000
2,850,000
Original
Interest
Rate
5.50%
4.75
5.50
Not Bank Qualified Obligations. The 2002A Bonds were not designated as “qualified tax–exempt
obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
4
Security. The 2002A Bonds are general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2002A Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2002A Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
4.
$42,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2002B
Bonds dated: March 1, 2002—Bonds issued on: April 11, 2002
CUSIP numbers on the 2002B Bonds are provided below.
The 2002B Bonds, as defined herein, were awarded pursuant to competitive bidding received by
means of the Bloomberg and Parity electronic bidding systems on March 26, 2002 to Wells Fargo Brokerage Services, LLC, San Francisco, California, as Senior Manager; with Banc of America Securities LLC,
San Francisco, California, as Co–Manager; at a “true interest rate” of 4.79%. Zions Bank Public Finance,
Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $42,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2002B, dated March 1, 2002 (the “2002B Bonds”), were issued by the
Board as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for DTC. DTC is acting as securities depository for the 2002B Bonds.
Payment Dates. Principal of and interest on the 2002B Bonds (interest payable June 1 and December 1 of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently
DTC.
Optional Redemption. The 2002B Bonds maturing on or before June 1, 2012, are not subject to optional redemption prior to maturity. The 2002B Bonds maturing on or after June 1, 2013, are subject to
redemption at the option of the Board on June 1, 2012, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as shall be selected by the Board at a redemption
price equal to 100% of the principal amount of the 2002B Bonds to be redeemed, plus accrued interest
thereon to the redemption date.
(The remainder of this page has been intentionally left blank.)
5
Current Maturity Schedule.
Current principal outstanding: $17,600,000
Original issue amount: $42,000,000
Dated: March 1, 2002
Due
June 1
2009…....
2010…....
2011……
2012…....
2013……
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
TQ 5
TR 3
TS 1
TT 9
TU 6
$2,625,000
2,725,000
2,850,000
3,000,000
3,125,000
Original
Interest
Rate
Due
June 1
4.50%
4.50
4.60
4.75
4.75
2014……
2015…....
2016…....
2017…....
CUSIP
239019
TV 4
TW 2
TX 0
TY 8
Principal
Amount
Original
Interest
Rate
$3,275,000
3,425,000
3,600,000
3,775,000
4.90%
5.00
5.10
5.15
(Strikethrough) These maturities were refunded by the 2005B Bonds, as hereinafter defined.
Not Bank Qualified Obligations. The 2002B Bonds were not designated as “qualified tax–exempt
obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2002B Bonds will be general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2002B Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2002B Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
5.
$38,930,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2003
Bonds dated: June 1, 2003—Bonds issued on: June 3, 2003
CUSIP numbers on the2003 Bonds are provided below.
The 2003 Bonds, as defined herein, were awarded pursuant to competitive bidding received by means
of the Bloomberg and Parity electronic bidding systems on May 6, 2003 to Banc of America Securities
LLC, Seattle, Washington; at a “true interest rate” of 3.60%. Zions Bank Public Finance, Salt Lake City,
Utah, acted as Financial Advisor.
Background Information. The $38,930,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2003, dated June 1, 2003 (the “2003 Bonds”), were issued by the Board
as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for
DTC. DTC is acting as securities depository for the 2003 Bonds.
6
Payment Dates. Principal of and interest on the 2003 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently DTC.
Optional Redemption. The 2003 Bonds maturing on or before June 1, 2013, are not subject to optional redemption prior to maturity. The 2003 Bonds maturing on or after June 1, 2014, are subject to redemption at the option of the Board on June 1, 2013, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as shall be selected by the Board at a redemption
price equal to 100% of the principal amount of the 2003 Bonds to be redeemed, plus accrued interest
thereon to the redemption date.
Current Maturity Schedule.
Current principal outstanding: $26,905,000
Original issue amount: $38,930,000
Dated: June 1, 2003
Due
June 1
2009…....
2010…....
2011…....
2012……
2013…....
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
UF 7
UG 5
UH 3
UJ 9
UK 6
$2,180,000
2,265,000
2,380,000
2,500,000
2,625,000
Original
Interest
Rate
Due
June 1
4.00%
5.00
5.00
5.00
5.00
2014……
2015……
2016…....
2017…....
2018…....
Principal
Amount
Original
Interest
Rate
$2,755,000
2,865,000
2,985,000
3,110,000
3,240,000
4.00%
4.125
4.25
4.25
4.25
CUSIP
239019
UL 4
UM 2
UN 0
UP 5
UQ 3
Not Bank Qualified Obligations. The 2003 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2003 Bonds will be general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2003 Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2003 Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
6.
$55,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2003B
Bonds dated: December 10, 2003—Bonds issued on: December 10, 2003
CUSIP numbers on the2003B Bonds are provided below.
The 2003B Bonds, as defined herein, were awarded pursuant to competitive bidding received by
means of the Parity electronic bidding system on November 18, 2003 to UBS Financial Services Inc.,
New York, New York; as Senior Manager; with Citigroup, New York, New York; First Albany Corpora-
7
tion, Albany, New York; and Zions First National Bank, Salt Lake City, Utah; as Co–Managers; at a “true
interest rate” of 3.69%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $55,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2003B, dated December 10, 2003 (the “2003B Bonds”), were issued by
the Board as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as
nominee for DTC. DTC is acting as securities depository for the 2003B Bonds.
Payment Dates. Principal of and interest on the 2003B Bonds (interest payable June 1 and December 1 of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently
DTC.
Optional Redemption. The 2003B Bonds maturing on or before June 1, 2014, are not subject to optional redemption prior to maturity. The 2003B Bonds maturing on or after June 1, 2015, are subject to
redemption at the option of the Board on June 1, 2013, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as shall be selected by the Board at a redemption
price equal to 100% of the principal amount of the 2003B Bonds to be redeemed, plus accrued interest
thereon to the redemption date.
Current Maturity Schedule.
Current principal outstanding: $41,975,000
Original issue amount: $55,000,000
Dated: December 10, 2003
Due
June 1
2009…....
2010…....
2011…....
2012……
2013…....
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
UX 8
UY 6
UZ 3
VA 7
VB 5
$3,550,000
3,650,000
3,750,000
3,900,000
4,050,000
Original
Interest
Rate
Due
June 1
3.00%
3.00
4.00
4.00
4.00
2014……
2015……
2016…....
2017…....
2018…....
CUSIP
239019
VC 3
VD 1
VE 9
VF 6
VG 4
Principal
Amount
Original
Interest
Rate
$4,255,000
4,400,000
4,600,000
4,800,000
5,050,000
4.00 %
4.50
4.50
4.50
4.125
Not Bank Qualified Obligations. The 2003B Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2003B Bonds will be general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2003B Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2003B Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
8
7.
$52,200,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2005A
Bonds dated: April 13, 2005—Bonds issued on: April 13, 2005
CUSIP numbers on the2003B Bonds are provided below.
The 2005A Bonds, as defined herein, were awarded pursuant to competitive bidding received by
means of the Parity electronic bidding system on March 15, 2005 to Merrill Lynch & Co., New York,
New York; at a “true interest rate” of 4.05%. Zions Bank Public Finance, Salt Lake City, Utah, acted as
Financial Advisor.
Background Information. The $52,200,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2005A, dated April 13, 2005 (the “2005A Bonds”), were issued by the
Board as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for DTC. DTC is acting as securities depository for the 2005A Bonds.
Payment Dates. Principal of and interest on the 2005A Bonds (interest payable June 1 and December 1 of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently
DTC.
Optional Redemption. The 2005A Bonds maturing on or before June 1, 2015, are not subject to optional redemption prior to maturity. The 2005A Bonds maturing on or after June 1, 2016, are subject to
redemption at the option of the Board on June 1, 2015, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as shall be selected by the Board at a redemption
price equal to 100% of the principal amount of the 2005A Bonds to be redeemed, plus accrued interest
thereon to the redemption date.
Current Maturity Schedule.
Current principal outstanding: $44,870,000
Original issue amount: $52,200,000
Dated: April 13, 2005
Due
June 1
2009…....
2010…....
2011…....
2012…....
2013……
2014…....
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
VZ 2
WA 6
WB 4
WC 2
WD 0
WE 8
$2,885,000
3,030,000
3,180,000
3,340,000
3,505,000
3,645,000
Original
Interest
Rate
Due
June 1
5.00%
5.00
5.00
5.00
4.00
4.50
2015……
2016……
2017…....
2018…....
2019…....
2020……
CUSIP
239019
WF 5
WG 3
WH 1
WJ 7
WK 4
WL 2
Principal
Amount
Original
Interest
Rate
$3,810,000
3,965,000
4,120,000
4,285,000
4,460,000
4,645,000
4.00 %
4.00
4.00
4.00
4.25
4.375
Not Bank Qualified Obligations. The 2005A Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
9
Security. The 2005A Bonds will be general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2005A Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2005A Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
8.
$24,905,000
Board of Education of Davis School District
Davis County, Utah
General Obligation Refunding Bonds
(Utah School Bond Guaranty Program, Series 2005B
Bonds dated: April 13, 2005—Bonds issued on: April 13, 2005
CUSIP numbers on the 2005B Bonds are provided below.
The 2005B Bonds, as defined herein, were awarded on March 15, 2005, at a negotiated sale to
George K. Baum & Company, Kansas City, Missouri and Wells Fargo Brokerage Services, LLC, San
Francisco, California, at a “true interest rate” of 3.94%. Zions Bank Public Finance, Salt Lake City, Utah,
acted as Financial Advisor.
Background Information. The $24,905,000 General Obligation Refunding Bonds (Utah School Bond
Guaranty Program), Series 2005B, dated April 13, 2005 (the “2005B Bonds”), were issued by the Board
as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for
DTC. DTC is acting as securities depository for the 2005B Bonds.
Payment Dates. Principal of and interest on the 2005B Bonds (interest payable June 1 and December 1 of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently
DTC.
Redemption Provisions. The 2005B Bonds are not subject to call and redemption prior to maturity.
Current Maturity Schedule.
Current principal outstanding: $21,605,000
Original issue amount: $27,905,000
Dated: April 13, 2005
Due
June 1
2011…....
2012…....
2013…....
2014……
Due: June 1, as shown below
CUSIP
239019
Principal
Amount
VP 4
VQ 2
VR 0
VS 8
$2,975,000
3,130,000
3,285,000
480,000
Original
Interest
Rate
Due
June 1
5.00%
5.00
5.00
4.25
2015……
2016……
2017……
CUSIP
239019
Principal
Amount
VT 6
VU 3
VV 1
$3,925,000
4,125,000
3,685,000
Original
Interest
Rate
5.00%
5.00
5.00
Not Bank Qualified Obligations. The 2005B Bonds were not designated as “qualified tax–exempt
obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
10
Security. The 2005B Bonds are general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2005B Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2005B Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
9.
$47,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2006
Bonds dated: September 20, 2006—Bonds issued on: September 20, 2006
CUSIP numbers on the 2006 Bonds are provided below.
The 2006 Bonds, as defined herein, were awarded on September 5, 2006, via competitive sale over
the Parity electronic bid submission system to UBS Investment Bank, New York, New York, at a “true
interest rate” of 4.04%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $47,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2006, dated September 20, 2006 (the “2006 Bonds”), were issued by the
Board as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for DTC. DTC is acting as securities depository for the 2006 Bonds.
Payment Dates. Principal of and interest on the 2006 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently DTC.
Redemption Provisions. The 2006 Bonds maturing on or prior to June 1, 2016, are not subject to optional redemption prior to maturity. The 2006 Bonds maturing on or after June 1, 2017 are subject to redemption at the option of the Board on December 1, 2016, and on any date thereafter prior to maturity, in
whole or in part, from such maturities or parts thereof as will be selected by the Board, upon notice given
as provided in the Bond Resolution and described below, at a redemption price equal to 100% of the principal amount of the 2006 Bonds to be redeemed, plus accrued interest thereon to the redemption date.
Current Maturity Schedule.
Current principal outstanding: $44,600,000
Original issue amount: $47,000,000
Dated: September 20, 2006
Due
June 1
2009…....
2010…....
2011…….
2012……
2013……
2014…....
2015……
CUSIP
239019
WR 9
WS 7
WT 5
WU 2
WV 0
WW 8
WX 6
Principal
Amount
$2,650,000
2,750,000
2,850,000
2,975,000
3,100,000
3,225,000
3,375,000
Due: June 1, as shown below
Original
Interest
Rate
Due
June 1
4.00%
4.00
4.00
4.00
4.00
5.00
5.00
2016……
2017……
2018……
2019……
2020……
2021……
11
CUSIP
239019
WY 4
WZ 1
XA 5
XB 3
XC 1
XD 9
Principal
Amount
$3,550,000
3,700,000
3,850,000
4,025,000
4,175,000
4,375,000
Original
Interest
Rate
4.25%
4.25
4.25
4.25
4.25
4.25
Not Bank Qualified Obligations. The 2006 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2006 Bonds are general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2006 Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2006 Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
10.
$55,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2007
Bonds dated: August 1, 2007—Bonds issued on: July 10, 2007
CUSIP numbers on the 2007 Bonds are provided below.
The 2007 Bonds, as defined herein, were awarded on July 10, 2007, via competitive sale over the Parity electronic bid submission system to Piper Jaffray, Minneapolis, Minnesota, at a “true interest rate” of
4.37%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $55,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2007, dated August 1, 2007 (the “2007 Bonds”), were issued by the
Board as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for DTC. DTC is acting as securities depository for the 2007 Bonds.
Payment Dates. Principal of and interest on the 2007 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently DTC.
Redemption Provisions. The Bonds maturing on or after June 1, 2018 are subject to redemption at the
option of the Board on June 1, 2017, and on any date thereafter prior to maturity, in whole or in part, from
such maturities or parts thereof as will be selected by the Board, upon notice given as provided in the
bond resolution, at a redemption price equal to 100% of the principal amount of the 2007 Bonds to be
redeemed, plus accrued interest thereon to the redemption date.
(The remainder of this page has been intentionally left blank.)
12
Current Maturity Schedule.
Current principal outstanding: $54,150,000
Original issue amount: $55,000,000
Dated: August 1, 2007
Due
June 1
CUSIP
239019
2009…....
2010…....
2011…….
2012……
2013……
2014…....
2015……
XG 2
XH 0
XJ 6
XK 3
XL 1
XM 9
XN 7
Due: June 1, as shown below
Principal
Amount
$
100,000
450,000
475,000
500,000
4,300,000
4,475,000
4,675,000
Original
Interest
Rate
Due
June 1
CUSIP
239019
Principal
Amount
4.00 %
4.00
4.125
4.25
4.25
4.25
4.25
2016……
2017……
2018……
2019……
2020……
2021……
2022……
XP 2
XQ 0
XR 8
XS 6
XT 4
XU 1
XV 9
$4,875,000
5,100,000
5,325,000
5,550,000
5,825,000
6,100,000
6,400,000
Original
Interest
Rate
4.50%
4.50
4.50
5.00
4.75
4.75
4.75
Not Bank Qualified Obligations. The 2007 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2007 Bonds are general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2007 Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2007 Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
11.
$64,000,000
Board of Education of Davis School District
Davis County, Utah
General Obligation School Building Bonds
(Utah School Bond Guaranty Program, Series 2008)
Bonds dated: May 7, 2008—Bonds issued on: May 7, 2008
CUSIP numbers on the 2008 Bonds are provided below.
The 2008 Bonds, as defined herein, were awarded on April 22, 2008, via competitive sale over the
Parity electronic bid submission system to Piper Jaffray, Minneapolis, Minnesota, at a “true interest rate”
of 4.24%. Zions Bank Public Finance, Salt Lake City, Utah, acted as Financial Advisor.
Background Information. The $64,000,000 General Obligation School Building Bonds (Utah School
Bond Guaranty Program), Series 2008, dated May 7, 2008 (the “2008 Bonds”), were issued by the Board
as fully–registered bonds in book–entry only form, registered in the name of Cede & Co., as nominee for
DTC. DTC is acting as securities depository for the 2008 Bonds.
Payment Dates. Principal of and interest on the 2008 Bonds (interest payable June 1 and December 1
of each year) are payable by U.S. Bank, as Paying Agent, to the registered owners thereof, currently DTC.
13
Optional Redemption. The 2008 Bonds maturing on and after June 1, 2018 are subject to redemption
prior to maturity in whole or in part at the option of the Board on December 1, 2017 or on any date thereafter, from such maturities or parts thereof as shall be selected by the Board at the redemption price of
100% of the principal amount to be redeemed plus accrued interest (if any) thereon to the redemption
date.
Current Maturity Schedule.
Current principal outstanding: $64,000,000
Original issue amount: $64,000,000
Dated: May 7, 2008
Due: June 1, as shown below
Due
June 1
CUSIP
239019
Principal
Amount
Original
Interest
Rate
2009…....
2010…....
2011…....
2012……
2013……
2014……
2015…....
2016……
2017……
2018……
XX 5
XY 3
XZ 0
YA 4
YB 2
YC 0
YD 8
YE 6
YF 3
YG 1
$3,100,000
2,220,000
2,275,000
2,350,000
2,425,000
2,500,000
2,600,000
2,675,000
2,800,000
2,925,000
3.00%
3.00
3.00
3.25
3.25
3.50
3.50
3.75
5.00
4.00
Due
June 1
CUSIP
239019
Principal
Amount
Original
Interest
Rate
2019……
2020……
2021……
2022……
2023……
2024……
2025……
2026……
2027……
2028……
YH 9
YJ 5
YK 2
YL 0
YM 8
YN 6
YP 1
YQ 9
YR 7
XW 7
$3,050,000
3,175,000
3,300,000
3,450,000
3,625,000
3,775,000
3,950,000
4,125,000
4,325,000
5,355,000
4.25 %
4.25
4.50
4.50
4.50
4.625
4.75
4.75
4.75
4.75
Not Bank Qualified Obligations. The 2008 Bonds were not designated as “qualified tax–exempt obligations” pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue
Code of 1986, relating to the deductibility of certain financial institutions’ interest expense allocable to
tax–exempt interest.
Security. The 2008 Bonds are general obligations of the Board, payable from the proceeds of ad
valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the
District, fully sufficient to pay the 2008 Bonds as to both principal and interest.
State Guaranty. Payment of the principal of and interest on the 2008 Bonds when due is guaranteed
by the full faith and credit and unlimited ad valorem taxing power of the State under the provisions of the
Guaranty Act.
(The remainder of this page has been intentionally left blank.)
14
DEBT STRUCTURE OF DAVIS SCHOOL DISTRICT,
DAVIS COUNTY, UTAH
Outstanding General Obligation Bonded Indebtedness
Series (1)
Purpose
Original
Principal
Amount
2008 .....................
2007 .....................
2006 .....................
2005B...................
2005A...................
2003B...................
2003 .....................
2002B (2) .............
2002A...................
2001 (2) (3) ..........
1999 (2)................
School building
School building
School building
Refunding
School building
School building
School building
School building
Refunding
School building
Building and Refunding
$64,000,000
55,000,000
47,000,000
24,905,000
52,200,000
55,000,000
38,930,000
42,000,000
27,240,000
10,000,000
40,525,000
Final
Maturity Date
June 1, 2022
June 1, 2022
June 1, 2021
June 1, 2017
June 1, 2020
June 1, 2018
June 1, 2018
June 1, 2014 (4)
June 1, 2012
June 1, 2013 (4)
June 1, 2010 (4)
Total principal amount of Outstanding Direct Debt (5) .................................................
Current
Principal
Outstanding
$ 64,000,000
54,150,000
44,600,000
21,605,000
44,870,000
41,975,000
26,905,000
17,600,000
15,595,000
2,420,000
9,160,000
$342,880,000
(1) Rated “Aaa” (State of Utah Guaranty; underlying “Aa3”) by Moody’s, as of the date of this SUPPLEMENTAL
CONTINUING DISCLOSURE MEMORANDUM.
(2) Portions of these bonds were refunded by the 2005B Bonds.
(3) Rated “Aaa” (State of Utah Guaranty; underlying “Aa3”) by Moody’s and “AAA” (State of Utah Guaranty;
underlying “A+”) by Fitch, as of the date of this SUPPLEMENTAL CONTINUING DISCLOSURE MEMORANDUM.
(4) Final maturity date after portions of these bonds was refunded by the 2005B Bonds.
(5) For accounting purposes, the outstanding direct debt as shown above is increased by the premium associated
with debt issued and reduced by deferred amounts on refundings that are reported in the long–term debt notes
of the Board’s financial statements. Thus, for accounting purposes, the total unamortized bond premium was
$7,853,771 and the total deferred amount was $868,197 (as of June 30, 2008), and together with current outstanding direct debt of $342,880,000, results in total outstanding direct debt (net) of $349,865,574.
(The remainder of this page has been intentionally left blank.)
15
Debt Service Schedule Of Outstanding General Obligation Bonds By Fiscal Year
Fiscal
Year Ending
June 30
Series 2008
$64,000,000
Principal
2008…………… $
0
2009……………
3,100,000
2010……………
2,220,000
2011……………
2,275,000
2012……………
2,350,000
2013……………
2,425,000
2014……………
2,500,000
2015……………
2,600,000
2016……………
2,675,000
2017……………
2,800,000
2018……………
2,925,000
2019……………
3,050,000
2020……………
3,175,000
2021……………
3,300,000
2022……………
3,450,000
2023……………
3,625,000
2024……………
3,775,000
2025……………
3,950,000
2026……………
4,125,000
2027……………
4,325,000
2028……………
5,355,000
Totals…… $ 64,000,000
Fiscal
Year Ending
June 30
(1)
Interest
$
0
2,846,127
2,575,244
2,508,644
2,440,394
2,364,019
2,285,206
2,197,706
2,106,706
2,006,394
1,866,394
1,749,394
1,619,769
1,484,831
1,336,331
1,181,081
1,017,956
843,363
655,738
459,800
254,363
$ 33,799,458
Series 2002B
$42,000,000
Principal
2008…………… $ 2,525,000
2009……………
2,625,000
2010……………
2,725,000
2011……………
2,850,000
2012……………
3,000,000
2013……………
3,125,000
2014……………
3,275,000
2015……………
0
2016……………
0
2017……………
0
2018……………
–
2019……………
–
2020……………
–
2021……………
–
2022……………
–
2023……………
–
2024……………
–
2025……………
–
2026……………
–
2027……………
–
2028……………
–
Totals…… $ 20,125,000
Series 2007
$55,000,000
Interest
$
Principal
$
Series 2006
$47,000,000
Interest
Principal
Series 2005B
$24,905,000
Series 2005A
$52,200,000
Series 2003B
$55,000,000
Interest
Principal
Interest
Principal
Interest
Principal
Interest
850,000
100,000
450,000
475,000
500,000
4,300,000
4,475,000
4,675,000
4,875,000
5,100,000
5,325,000
5,550,000
5,825,000
6,100,000
6,400,000
–
–
–
–
–
–
$ 2,087,422
2,470,906
2,466,906
2,448,906
2,429,313
2,408,063
2,225,313
2,035,125
1,836,438
1,617,063
1,387,563
1,147,938
870,438
593,750
304,000
–
–
–
–
–
–
$
825,000
2,650,000
2,750,000
2,850,000
2,975,000
3,100,000
3,225,000
3,375,000
3,550,000
3,700,000
3,850,000
4,025,000
4,175,000
4,375,000
–
–
–
–
–
–
–
$ 1,942,188
1,909,188
1,803,188
1,693,188
1,579,188
1,460,188
1,336,188
1,174,938
1,006,188
855,313
698,063
534,438
363,375
185,938
–
–
–
–
–
–
–
$ 3,300,000
0
0
2,975,000
3,130,000
3,285,000
480,000
3,925,000
4,125,000
3,685,000
–
–
–
–
–
–
–
–
–
–
–
$ 1,222,150
1,076,650
1,076,650
1,076,650
927,900
771,400
607,150
586,750
390,500
184,250
–
–
–
–
–
–
–
–
–
–
–
$ 2,745,000
2,885,000
3,030,000
3,180,000
3,340,000
3,505,000
3,645,000
3,810,000
3,965,000
4,120,000
4,285,000
4,460,000
4,645,000
–
–
–
–
–
–
–
–
$ 2,103,194
1,965,944
1,821,694
1,670,194
1,511,194
1,344,194
1,203,994
1,039,969
887,569
728,969
564,169
392,769
203,219
–
–
–
–
–
–
–
–
$ 3,425,000
3,550,000
3,650,000
3,750,000
3,900,000
4,050,000
4,225,000
4,400,000
4,600,000
4,800,000
5,050,000
–
–
–
–
–
–
–
–
–
–
$
$ 55,000,000
$ 26,329,141
$ 45,425,000
$ 16,541,563
$ 24,905,000
$ 7,920,050
$ 47,615,000
$ 15,437,069
$ 45,400,000
$ 12,077,688
Series 2002A
$27,240,000
Principal
936,888
$ 2,210,000
823,263
3,640,000
705,138
3,790,000
582,513
3,965,000
451,413
4,200,000
308,913
–
160,475
–
0 (1)
–
0 (1)
–
0 (1)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$ 3,968,600
$ 17,805,000
Series 2001
$10,000,000
Interest
$
852,125
758,200
603,500
432,950
220,875
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$ 2,867,650
Principal
$
425,000
445,000
465,000
480,000
505,000
525,000
0
0
0
–
–
–
–
–
–
–
–
–
–
–
–
$ 2,845,000
Series 1999
$40,525,000
Interest
$
$
Principal
126,208
$ 5,205,000
108,145
6,205,000
89,233
2,955,000
69,470
0
48,470
0
26,250
0
0 (1)
–
0 (1)
–
0 (1)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
467,775
$ 14,365,000
Principal and interest were refunded by the $24,905,000 2005B Bonds.
16
Interest
Series 2003
$38,930,000
1,785,063
1,682,313
1,575,813
1,466,313
1,316,313
1,160,313
998,313
829,313
631,313
424,313
208,313
–
–
–
–
–
–
–
–
–
–
Principal
$
Interest
2,095,000
2,180,000
2,265,000
2,380,000
2,500,000
2,625,000
2,755,000
2,865,000
2,985,000
3,110,000
3,240,000
–
–
–
–
–
–
–
–
–
–
$
1,284,619
1,200,819
1,113,619
1,000,369
881,369
756,369
625,119
514,919
396,738
269,875
137,700
–
–
–
–
–
–
–
–
–
–
$ 29,000,000
$
8,181,513
Totals
Total
Total
Total Debt
Principal
Interest
Service
$ 12,968,323
15,242,303
13,960,264
12,949,195
11,806,426
10,599,706
9,441,756
8,378,719
7,255,450
6,086,175
4,862,200
3,824,538
3,056,800
2,264,519
1,640,331
1,181,081
1,017,956
843,363
655,738
459,800
254,363
$ 128,749,005
$ 36,573,323
42,622,303
38,260,264
38,129,195
38,206,426
37,539,706
34,021,756
34,028,719
34,030,450
33,401,175
29,537,200
20,909,538
20,876,800
16,039,519
11,490,331
4,806,081
4,792,956
4,793,363
4,780,738
4,784,800
5,609,363
$ 495,234,005
$ 628,469
…………………………………………………… $ 23,605,000
400,750
……………………………………………………
27,380,000
129,281
……………………………………………………
24,300,000
0 (1) ……………………………………………………
25,180,000
0 (1) ……………………………………………………
26,400,000
0 (1) ……………………………………………………
26,940,000
–
……………………………………………………
24,580,000
–
……………………………………………………
25,650,000
–
……………………………………………………
26,775,000
–
……………………………………………………
27,315,000
–
……………………………………………………
24,675,000
–
……………………………………………………
17,085,000
–
……………………………………………………
17,820,000
–
……………………………………………………
13,775,000
–
……………………………………………………
9,850,000
–
……………………………………………………
3,625,000
–
……………………………………………………
3,775,000
–
……………………………………………………
3,950,000
–
……………………………………………………
4,125,000
–
……………………………………………………
4,325,000
–
……………………………………………………
5,355,000
$ 1,158,500
…………………………………………………… $ 366,485,000
Other Financial Considerations; Historical Tax And Revenue Anticipation Note Borrowing
Other Financial Considerations. In June 1996, the Municipal Building Authority of Farmington City,
Utah, issued $4.3 million lease revenue bonds which proceeds were used to construct an office building.
These lease revenue bonds were then refunded by the Municipal Building Authority of Farmington City,
Utah in 1999. The Board entered into a lease agreement with the Municipal Building Authority of Farmington City to lease the building. Payments are made by the Board to the Municipal Building Authority of
Farmington City, who in turn makes the lease payments on the lease revenue bonds. The current principal
amount outstanding is $1,570,000, with principal payments occurring every June 15, until the year 2012.
This obligation is accounted for in the total capital lease obligations of the District.
In June 1994, the Municipal Building Authority of Davis County, Utah, issued $1,165,000 Lease
Revenue Bonds. These bond proceeds were used to construct a building for the Head Start program that is
administered by the District. The Board entered into a lease agreement with the Municipal Building Authority of Davis County to lease the building. Payments are made by the Board to the Municipal Building
Authority of Davis County, who in turn makes the lease payments on the lease revenue bonds. The current principal amount outstanding is $60,000, with principal payments occurring every May 1 and November 1, until the year 2009. This obligation is accounted for in the total capital lease obligations of the
District.
Historical Tax And Revenue Anticipation Note Borrowing. The Board has issued tax anticipation
notes for each of the past five Fiscal Years as follows:
Fiscal Year
Ending 6–30
Series
2009 (1)..................
2008 .......................
2007 .......................
2006 .......................
2005 .......................
2008
2007
2006
2005
2004
Amount
$30,000,000
30,000,000
30,000,000
25,000,000
25,000,000
Date of Sale
June 17, 2008
June 19, 2007
June 20, 2006
June 7, 2005
June 15, 2004
Type of Sale
Public
Public
Public
Public
Public
(1) Principal and interest on these notes are due Tuesday, June 30, 2009.
(Source: The District.)
(The remainder of this page has been intentionally left blank.)
17
Moody’s
Rating
MIG 1
MIG 1
MIG 1
MIG 1
MIG 1
Overlapping And Underlying General Obligation Debt
Taxing Entity
2008
Taxable
Value (1)
Board’s
Portion of Taxable Value
Board’s
Percentage
Entity’s
General
Obligation
Debt
Board’s
Portion of
G.O. Debt
Overlapping:
State of Utah ............ $213,234,293,543 $17,019,683,493
8.0%
$993,810,000 $ 79,504,800
Davis County ...........
17,019,683,493 17,019,683,493 100.0
22,805,000
22,805,000
Total Overlapping.............................................................................................................. 102,309,800
Underlying:
WBWCD (2) (3) ...... $48,965,264,287 $17,019,683,493
34.8
$30,986,402
North Davis Sewer
District ..................
8,692,084,169
7,448,143,158
85.7
53,613,000
Clearfield City (3) ....
1,350,632,171
1,350,632,171 100.0
10,575,000
North Salt Lake
City (3)..................
1,575,189,512
1,575,189,512 100.0
4,495,000
Farmington City .......
1,038,841,535
1,038,841,535 100.0
4,369,000
Clinton City (3)........
765,102,093
765,102,093 100.0
272,000
West Bountiful
City (3)..................
450,346,084
450,346,084 100.0
1,035,000
South Davis Rec.
District (4).............
6,620,838,231
6,620,838,231 100.0
16,290,000
Total Underlying ...............................................................................................................
10,783,268
45,946,341
0
0
4,369,000
0
0
16,290,000
77,388,609
Total Overlapping and Underlying General Obligation Debt.................................................. $179,698,409
Total Overlapping General Obligation Debt (Excluding the State) (5) ................................... $ 22,805,000
Total Direct General Obligation Bonded Indebtedness ........................................................... 342,880,000
Total Direct and Overlapping General Obligation Debt (Excluding the State) (5) ................. $365,685,000
This table excludes any additional principal amounts attributable to unamortized original issue bond premium and
deferred amount on refunding.
(1) 2008 values are preliminary and subject to change. Taxable value used in this table excludes the taxable value
used to determine uniform fees on tangible personal property.
(2) The Weber Basin Water Conservancy District (“WBWCD”) covers all of Morgan County, most of the County
and Weber Counties, and portions of Box Elder and Summit Counties. Principal and interest on WBWCD general obligation bonds are paid from sales of water. WBWCD’s outstanding general obligation bonds are limited
ad valorem tax bonds. By law, WBWCD may levy a tax rate of up to .000200 to pay, first, for any outstanding
general obligation indebtedness, then for operation and maintenance expenses, and then for any other lawful
purpose.
(3) All or portions of these governmental entities outstanding general obligation debt are supported by user fee
revenues from water or sewer. The County’s portion of overlapping general obligation debt has been reduced to
the extent that such general obligation debt is supported by “user fee revenues.”
(4) South Davis Recreation District members are Bountiful, Centerville, North Salt Lake, Woods Cross, and West
Bountiful
(5) The State’s general obligation debt is not included in overlapping debt because the State currently levies no
property tax for payment of general obligation bonds.
18
Debt Ratios
The following table sets forth the ratios of general obligation debt (excluding any additional principal
amounts attributable to unamortized original issue bond premium) that is expected to be paid from taxes
levied specifically for such debt and not from other revenues over the taxable value of property within the
District, the estimated market value of such property and the population of the District. The State’s general obligation debt is not included in the debt ratios because the State currently levies no property tax
for payment of general obligation debt.
To 2008
Estimated
Taxable
Value (1)
To 2008
Estimated
Market
Value (2)
To 2008
Population
Estimate Per
Capita (3)
Direct General Obligation Debt ......................................
2.01%
1.28%
$1,135
Direct and Overlapping General Obligation Debt ..........
2.15
1.37
1,211
(1) Based on an estimated 2008 Taxable Value of $17,019,683,493, which value excludes the taxable value used to
determine uniform fees on tangible personal property.
(2) Based on an estimated 2008 Market Value of $26,705,728,948, which value excludes the taxable value used to
determine uniform fees on tangible personal property.
(3) Based on 2008 population estimate of 301,915 by the Utah Population Estimates Committee.
General Obligation Legal Debt Limit And Additional Debt Incurring Capacity
The general obligation indebtedness of the Board is limited by State law to 4% of the fair market
value of taxable property in the District. The legal debt limit and additional debt incurring capacity of the
Board (after the issuance of the Bonds) are based on the estimated fair market value for 2008 and the calculated valuation value from 2007 uniform fees, and are calculated as follows:
Estimated 2008 “Fair Market Value” ................................................................................ $26,705,728,948
2007 Valuation from Uniform Fees (1).............................................................................
1,289,526,308
Estimated 2008 “Fair Market Value for Debt Incurring Capacity”................................... $27,995,255,256
“Fair Market Value for Debt Incurring Capacity” times 4% (the “Debt Limit”) ..............
Less: Current Outstanding General Obligation Debt (2) ..................................................
$1,119,810,210
(349,865,574)
Estimated Additional Debt Incurring Capacity .................................................................
$ 769,944,636
(1) For debt incurring capacity only, in computing the fair market value of taxable property in the District, the
value of all motor vehicles and state–assessed commercial vehicles (which value is determined by dividing the
uniform fee revenue by 1.5%) will be included as a part of the fair market value of the taxable property in the
District.
(2) For legal debt limit purposes, the outstanding general obligation debt of the Board must be increased by the
premium associated with debt issued and reduced by deferred amounts on refunding. Thus, for accounting purposes, the total unamortized bond premium was $7,853,771 and the total deferred amount was $868,197 (as of
June 30, 2008), and together with current outstanding direct debt of $342,880,000, results in total outstanding
direct debt (net) of $349,865,574.
No Defaulted Obligations
The Board has never failed to pay principal of and interest on its financial obligations when due.
19
FINANCIAL INFORMATION REGARDING
DAVIS SCHOOL DISTRICT, DAVIS COUNTY, UTAH
Five–Year Financial Summaries
The summaries contained herein were extracted from the District’s Comprehensive Annual Financial
Report for the Fiscal Years 2004 through 2008. The summaries itself have not been audited.
(The remainder of this page has been intentionally left blank.)
20
Davis School District
Statement of Net Assets
Primary Government
(This summary has not been audited)
2008
Assets
Cash and investments…………………………… $ 142,975,081
Receivables:
Property taxes………………………………… 110,245,364
Other local……………………………………
1,443,469
State of Utah……………………………………
319,387
Federal government……………………………
8,909,251
Internal balances…………………………………
41,610
Inventories………………………………………
7,069,016
1,656,771
Bond issuance costs, net…………………………
Capital assets:
Land and construction…………………………
66,931,588
Other capital assets, net of depreciation……… 372,348,337
Total assets………………………… 711,939,874
Liabilities:
Accounts payable…………………………………
5,666,661
Notes payable……………………………………
250,000
Accrued interest…………………………………
1,038,995
Accrued salaries…………………………………
58,741,506
Deferred revenue:
Federal grants…………………………………
–
Property tax revenue…………...……………… 103,596,768
Noncurrent liabilities:
29,075,864
Due within one year……………………………
Due in more than one year……………………
339,692,400
Total liabilities……………………… 538,062,194
Net Assets:
134,624,761
Invested in capital assets, net of related debt……
Restricted for:
Debt service…………..………………………
4,586,918
Capital projects…………..……………………
28,487,591
7,904,535
State multi–district programs…………………
Unrestricted………………...……………………
(1,726,125)
Total net assets…………………….. $ 173,877,680
2007
June 30
2006
2005
2004
$ 46,835,727
$ 42,842,410
$ 64,103,183
$ 58,155,305
98,307,595
2,720,228
1,166,127
8,083,093
–
6,857,484
1,367,728
85,409,855
2,892,912
1,583,837
2,634,618
–
6,990,701
1,212,096
81,548,408
3,443,915
1,775,790
15,406,538
–
6,711,482
1,318,082
111,642,273
307,863,895
584,844,150
65,746,451
304,119,470
513,432,350
60,573,010
294,637,599
529,518,007
82,903,234
253,697,841
489,517,072
14,543,632
250,000
906,803
41,444,046
7,644,478
300,000
787,905
34,208,984
5,375,817
250,000
699,941
47,247,374
4,714,112
250,000
578,112
45,185,233
–
93,868,232
31,627
80,361,895
–
76,212,324
–
72,770,204
31,155,531
240,480,216
422,648,460
28,089,580
217,941,294
369,365,763
24,929,249
237,679,326
392,394,031
23,707,174
202,871,909
350,076,744
159,237,527
132,677,347
134,705,100
135,241,562
2,152,675
272,031
242,747
290,709
$ 162,195,689
1,934,476
12,674,267
55,004
(3,274,507)
$ 144,066,587
1,486,977
2,442,345
41,954
(1,552,400)
$ 137,123,976
(Source: Information taken from the District’s audited basic financial statements. This summary itself has not been audited.)
21
77,996,023
3,103,274
3,658,496
2,802,610
(3,155,005)
9,222,057
1,133,237
1,647,484
3,752,803
178,261
(1,379,782)
$ 139,440,328
Davis School District
Statement of Activities (1)
Primary Government
(This summary has not been audited)
Net (Expense) Revenue and Changes in Net Assets
June 30
2008
Primary government:
Governmental activities:
Instructional services……………………………………….. $ (237,982,642)
Supporting services:
(9,378,058)
Student……………………………………………………
(13,914,395)
Instructional staff…………………………………………
(3,222,128)
District administration……………………………………
School administration……………………………………
(22,996,197)
(10,014,910)
Business administration……………..……………………
Operation and maintenance of facilities…………………
(38,927,930)
Student transportation……………………………………
(5,190,767)
(13,534,129)
Interest on long–term liabilities………………………………
Total governmental activities……………………… (355,161,156)
Business–type activities:
250,614
School food services…………………………………………
505,598
Pioneer Adult Rehabilitation Center…………………………
Total business–type activities……………………
756,212
Total primary government………………………… (354,404,944)
General revenues:
Property taxes levied for:
20,755,944
Basic levy set by state for K–12 instruction…………………
24,268,903
Board voted leeway for K–12 instruction……………………
6,067,297
Class size reduction…………………………………………
1,835,310
Reading program……………………………………………
10,408,239
10% of basic for capital outlay, textbooks, and supplies……
Transportation………………………………………………
2,335,233
2,950,136
Community recreation………………………………………
General obligation bond debt service………………………
38,948,551
1,104,479
Capital outlay…………………………………………………
–
General purposes……………………………………………
Federal and state aid not restricted to specific purposes………
240,324,714
5,270,686
Interest…………………………………………………………
Miscellaneous…………………………………………………
20,191,090
374,460,582
Total general revenues……………………………
20,055,638
Change in net assets………………………………
169,088,461
Net assets–beginning………………...………………………………
Net assets–ending……………………..……………………………
$ 189,144,099
2007
2006
2005
2004
$ (182,164,444)
$ (173,697,749)
$ (164,040,785)
$ (153,662,755)
(8,272,325)
(12,308,323)
(3,270,851)
(20,674,980)
(8,637,547)
(35,498,245)
(5,500,664)
(12,435,282)
(288,762,661)
(7,928,765)
(10,884,849)
(2,867,761)
(19,307,573)
(7,760,912)
(34,336,655)
(5,951,962)
(12,102,047)
(274,838,273)
(7,159,850)
(10,658,172)
(2,712,108)
(18,310,908)
(7,253,409)
(31,499,415)
(3,639,200)
(11,129,849)
(256,403,698)
(6,854,678)
(10,887,312)
(2,535,553)
(17,229,590)
(7,620,143)
(28,612,592)
(3,888,934)
(8,837,120)
(240,128,677)
787,690
853,342
1,641,032
(287,121,629)
650,543
474,273
1,124,816
(273,713,457)
114,485
91,981
206,466
(256,197,232)
1,536,895
(71,229)
1,465,666
(238,663,011)
21,240,634
20,033,019
5,004,899
1,516,229
9,915,875
1,959,023
2,804,354
34,497,583
1,046,602
–
195,629,473
5,265,672
6,337,369
305,250,732
18,129,103
144,066,587
22,014,536
19,336,429
4,827,964
1,461,904
9,569,935
1,891,874
2,702,677
31,584,472
1,007,362
–
180,255,595
3,601,913
2,401,407
280,656,068
6,942,611
137,123,976
–
–
–
–
–
1,789,916
2,553,765
28,899,586
10,046,025
45,875,875
160,620,652
3,155,007
940,054
253,880,880
(2,316,352)
139,440,328
–
–
–
–
–
1,747,691
2,488,801
27,952,903
9,801,214
43,524,583
157,464,947
871,855
34,027
243,886,021
5,223,010
134,217,318
$ 162,195,690
$ 144,066,587
$ 137,123,976
$ 139,440,328
(1) This report is presented is summary format concerning the single item of “Net (Expense) Reveune and Changes in Net Assets” and is not intended to be
complete. For a detailed itemized report see “BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL
YEAR 2008–Statement of Activities for the Fiscal Year Ended June 30, 2008” below.
(Source: Information taken from the District’s audited basic financial statements. This summary itself has not been audited.)
22
Davis School District
Balance Sheet—General Fund
(This summary has not been audited)
Fiscal Year Ended June 30
2007
2006
2005
2008
Assets and other debits
Cash and investments…………………………………… $ 49,088,547
Receivables:
Property taxes………………………………………… 57,366,237
1,327,652
Other local……………………………………………
306,062
State of Utah…………………………………………
Federal government…………………………………
8,890,879
4,945,000
Due from other funds……………………………………
3,068,975
Inventories………………………………………………
Total assets and other debits……………… $ 124,993,352
Liabilities, equity and other credits
Liabilities:
Accounts payable…………………………………… $
893,548
Notes payable...………………………………………
250,000
58,741,506
Accrued payroll and withholding……………………
Deferred revenue:
Property taxes……………………………………… 55,355,386
–
Federal grants………………………………………
Total liabilities…………………………… 115,240,440
Equity and other credits:
Fund balances:
Reserved for:
3,068,975
Inventories………………………………………
Unreserved:
Designated:
300,000
Workers Compensation………………………
2,500,000
Termination benefits…………………………
Undesignated, reported in
3,883,937
General Fund…………………………………
9,752,912
Total fund balances…………………………
Total liabilities, equity and other credits… $ 124,993,352
$ 32,155,331
$ 27,811,342
$ 23,499,771
$ 32,258,480
52,663,237
1,307,255
230,585
7,650,317
5,711,348
1,619,498
45,884,024
1,544,124
714,461
2,243,310
7,074,728
1,668,283
45,195,841
2,066,916
1,264,394
15,166,144
8,699,197
1,395,663
43,626,516
2,136,822
3,151,561
2,586,226
8,938,398
819,464
$ 101,337,571
$ 86,940,272
$ 97,287,926
$ 93,517,467
$
769,418
250,000
41,444,046
$ 2,062,056
300,000
34,208,984
$
$
51,389,009
–
93,852,473
44,256,193
31,627
80,858,860
43,550,470
–
92,008,318
42,082,350
–
88,320,780
1,619,498
1,668,283
1,395,663
819,464
300,000
1,500,000
300,000
750,000
250,000
–
250,000
–
4,065,600
7,485,098
3,363,129
6,081,412
3,633,945
5,279,608
4,127,223
5,196,687
$ 101,337,571
$ 86,940,272
$ 97,287,926
$ 93,517,467
960,474
250,000
47,247,374
(Source: Information taken from the District’s audited basic financial statements. This summary itself has not been audited.)
23
2004
803,197
250,000
45,185,233
Davis School District
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds–General Fund
(This summary has not been audited)
2008
Revenues:
Property taxes…………………………………… $ 57,768,398
2,246,225
Interest……….…………………………………
8,133,104
Other local sources………………………………
State of Utah…………………………………… 285,130,055
Federal government……………………………
26,271,524
Total revenues…………………………
379,549,306
Expenditures:
Current:
Instruction…………………………………… 262,279,194
Support services:
13,312,679
Students……………………………………
17,574,702
Instructional staff…………………………
District administration……………………
3,204,530
School administration……………………… 22,712,165
Business administration…………………… 10,946,328
Operation and maintenance of facilities…… 38,100,173
12,138,708
Student transportation services……………
1,345,800
Debt service (tax anticipation note interest)……
Debt service (capital lease payments)…………
667,213
Total expenditures……………………… 382,281,492
(2,732,186)
Revenues over (under) expenditures………………
Other financing sources (uses):
5,000,000
Transfers…………………………………………
5,000,000
Total other financing sources (uses)……
Net change in fund balances……………………
2,267,814
7,485,098
Fund balances–beginning…………………………
Fund balances–ending…………………………… $
9,752,912
2007
Fiscal Year Ended June 30
2006
2005
2004
$ 52,581,340
1,780,516
12,115,817
239,589,195
26,371,759
332,438,627
$ 52,438,512
1,352,833
6,659,775
222,852,502
24,810,650
308,114,272
$ 50,230,127
3,155,007
5,335,751
203,782,077
25,749,675
288,252,637
$ 47,712,528
871,855
3,607,063
198,984,982
24,355,326
275,531,754
227,618,092
211,904,631
203,008,357
193,677,546
11,782,588
15,202,804
3,253,753
20,512,554
9,428,097
35,542,521
11,153,436
1,373,883
667,213
336,534,941
(4,096,314)
11,362,816
14,165,716
2,851,311
19,052,775
8,584,891
33,694,624
11,033,880
994,611
667,213
314,312,468
(6,198,196)
10,782,609
13,826,643
2,758,154
18,186,049
8,059,917
30,770,797
8,790,782
792,515
293,893
297,269,716
(9,017,079)
10,253,567
13,606,938
2,555,220
17,458,085
7,704,925
29,447,103
8,457,092
419,055
293,893
283,873,424
(8,341,670)
5,500,000
5,500,000
1,403,686
6,081,412
$
7,485,098
7,000,000
7,000,000
801,804
5,279,608
$
6,081,412
9,100,000
9,100,000
82,921
5,196,687
$
5,279,608
8,837,400
8,837,400
495,730
4,700,957
$
(Source: Information taken from the District’s audited basic financial statements. This summary itself has not been audited.)
24
5,196,687
Historical Tax Rates
Tax Rate
Maximum
Tax Rate (1)
2008–09 2007–08 2006–07 2005–06 2004–05
General Fund and Non K–12 Fund:
Basic Program (2) ...................................... formula
Voted Leeway (3) ...................................... .001600
Board Voted Leeway (4)............................ .000400
K-3 Reading Program ................................ .000121
Special Transportation (5).......................... .000300
Tort Liability (6) ........................................ .000100
Totals...............................................................................
.001250
.001430
.000357
.000108
.000138
.000056
.003339
.001311
.001600
.000400
.000121
.000154
.000063
.003649
.001515
.001493
.000373
.000113
.000146
.000068
.003708
.001720
.001574
.000393
.000119
.000154
.000072
.004032
.001800
.001600
.000400
.000121
.000157
.000073
.004151
.000174
.000195
.000209
.000220
.000224
Capital Outlay (8) ...................................... .002400
.000065
10% of Basic Program (9).......................... formula
.000615
Totals............................................................................... .000680
.000073
.000688
.000761
.000078
.000739
.000817
.000082
.000779
.000861
.000083
.000792
.000875
Recreation (7) ................................................
none
Capital Outlay:
Debt Service (general obligation bonds):
Debt Service (10) .......................................
none
.002571
.002571
.002571
.002571
.002571
Judgment Recovery Levy (11) ......................
none
.000000
.000000
.000000
.000000
.000000
Total All Funds................................................................ .006764
.007176
.007305
.007684
.007821
(1)
(2)
(3)
Maximum tax rate where applicable under current State law.
Set by law for the District’s portion of the State Minimum School Program.
General maintenance and operation revenue. The maximum tax rate for the Voted Leeway Program is
.002000. However, when considering the maximum tax rate of .002000, the Board–Approved Leeway Program of .000400 is considered to be part of the Voted Leeway Program. Thus, the effective maximum tax rate
for the Voted Leeway Program is .001600. In the early 1980’s, District residents approved a Voted Leeway
Program of not to exceed a .000600 tax rate; in 1993, District residents approved an additional .000400 tax
rate to the Voted Leeway Program; and in 1997, District residents approved an additional .000600 tax rate to
the Voted Leeway Program (which results in a maximum tax rate of .001600).
(4) Restricted to class size reduction.
(5) Funds purchase of buses, activity trips, and hazardous bus routes.
(6) Liability insurance premium.
(7) Maintenance of recreational facilities.
(8) Construction remodeling projects and purchase of school sites/equipment, etc.
(9) Construction remodeling projects and purchase of school sites/equipment, textbooks and supplies.
(10) This maximum limitation is not applicable to levies made to provide for payment of the principal of and interest on general obligation bonds authorized by vote of school district electors.
(11) A “judgment levy” is levied for the purpose of collecting additional revenues. The Board has the legal right to
levy a “Judgment Levy” in the succeeding tax year to make up for any tax revenue shortfall due to tax or revaluation “judgment” circumstances that the Board had no control over.
(Source: The District.)
25
Comparative Total Property Tax Rates Within Davis County
Total Tax Rate Within Taxing Area
Tax Levying Entity (1)
2008
Davis School District:
Bountiful City ...............................
Centerville City.............................
Clearfield City ..............................
Clinton City ..................................
Farmington City............................
Fruit Heights City .........................
Kaysville City ...............................
Layton City ...................................
North Salt Lake City.....................
South Weber City .........................
Sunset City....................................
Syracuse City ................................
West Bountiful City......................
West Point City.............................
Woods Cross City .........................
Unincorporated areas (2) ..............
.011213
.011233
.012852
.012127
.011952
.012050
.010954
.011896
.011458
.011045
.011378
.011625
.011286
.012578
.010956
.010994
2007
2006
2005
2004
.011997
.012303
.013782
.013112
.012681
.012761
.011184
.012849
.012429
.011615
.012011
.012302
.012306
.013440
.011918
.011839
.012048
.012184
.013454
.012903
.012544
.012454
.010546
.012566
.012336
.011410
.011582
.011517
.012131
.013257
.011809
.011730
.012865
.012518
.014058
.013620
.013410
.013058
.011667
.013212
.013169
.012048
.012225
.012121
.012837
.013072
.012594
.012464
.012560
.012470
.014235
.013202
.013707
.013244
.011931
.013347
.012828
.012245
.012686
.012298
.012486
.013357
.012278
.012148
(1) These tax rates represent a taxing district within the city or town with the highest combined total tax rates of all
overlapping taxing districts.
(2) These tax rates represent a taxing district within the unincorporated municipalities within the County with the
highest combined total tax rates of all overlapping taxing districts.
(Source: Reports from the Utah State Tax Commission.)
Taxable, Fair Market And Market Value Of Property
Year
2008 (2).......................
2007 ............................
2006 ............................
2005 ............................
2004 ............................
Taxable
Value (1)
$17,019,683,493
14,274,512,988
12,009,355,126
10,890,068,690
10,254,421,718
% Change
Over
Prior Year
19.2%
18.9
10.3
6.2
4.8
Fair Market/
Market
Value
$26,705,728,948
22,209,228,510
18,486,127,884
16,480,970,097
15,490,290,597
% Change
Over
Prior Year
20.2%
20.1
12.2
6.4
3.9
This table includes redevelopment agencies valuation.
(1) Taxable values were calculated by reducing the fair market/market value of primary residential property by
45%, representing a partial property tax exemption for such property.
(2) Preliminary; subject to change. Utah State Tax Commission.
See “Historical Summaries Of Taxable Value Of Property” below.
26
Historical Summaries Of Taxable Values Of Property
2008
Taxable
Value (1)
Set by State Tax Commission
(Centrally Assessed)
Total centrally assessed……… $
2007
Taxable
Value
% of
T.V.
372,610,692
2.2 %
$
315,256,143
2006
Taxable
Value
$
303,380,332
2005
Taxable
Value
$
298,195,675
2004
Taxable
Value
$
291,289,244
Set by County Assessor
(Locally Assessed)
Real property:
Primary residential……………… 11,800,000,000
Other residential…………………
69,000,000
Commercial and industrial………
3,070,000,000
FAA………………………………
8,000,000
Unimproved non FAA…………
560,000,000
Agricultural………………………
10,349,656
Total real property…………… 15,517,349,656
Personal property:
Primary mobile homes…………
38,500,000
Secondary mobile homes………
1,223,145
Other business personal…………
1,090,000,000
Total personal property………
1,129,723,145
Total locally assessed………
16,647,072,801
Total taxable value…………
$ 17,019,683,493
69.3
0.4
18.0
0.0
3.3
0.1
91.2
9,668,556,625
63,279,024
2,604,927,842
6,998,947
547,454,203
8,677,194
12,899,893,835
7,889,970,028
427,277,882
2,399,485,230
7,437,329
111,522,886
10,203,581
10,845,896,936
6,807,588,565
346,896,383
2,502,244,227
8,941,668
92,084,675
18,518,691
9,776,274,209
6,371,529,316
2,423,442,032
285,672,751
8,789,116
80,838,904
19,310,088
9,189,582,207
0.2
0.0
6.4
6.6
97.8
29,429,013
915,042
1,029,018,955
1,059,363,010
13,959,256,845
26,085,565
781,629
833,210,664
860,077,858
11,705,974,794
25,735,377
618,852
789,244,577
815,598,806
10,591,873,015
27,865,980
938,959
744,745,328
773,550,267
9,963,132,474
$ 14,274,512,988
$ 12,009,355,126
$ 10,890,068,690
$ 10,254,421,718
100.0 %
(1) Preliminary; subject to change.
(Source: Property Tax Division, Utah State Tax Commission.)
27
Tax Collection Record
Tax
Year
End
12/31
(1)
Total
Taxes
Levied
(2)
Treasurer’s
Relief
2007 (4)$99,911,470 $1,620,635
2006
85,572,398 1,188,065
2005
81,303,555 1,092,245
2004
77,963,504 661,706
2003
73,475,271 575,984
Net Taxes
Assessed
Current
Collections
$98,290,835
84,384,333
80,211,310
77,301,798
72,899,287
$89,489,553
81,008,796
76,725,383
73,207,446
69,547,848
(3) Deliq.,
Personal
Property
and Miscelleous Collections
Total
Collections
% of
% of
Current
Total
CollecCollections to
tions to
Net Taxes Net Taxes
Assessed Assessed
$5,211,736 $94,701,289
5,452,197 86,460,993
5,664,630 82,390,013
3,983,845 77,191,291
3,634,474 73,182,322
91.0%
96.0
95.7
94.7
95.4
96.3%
102.5
102.7
99.9
100.4
(1) Excludes redevelopment agencies valuation.
(2) Treasurer’s Relief includes abatements. These Treasurer’s Relief items are levied against the property, but are
never collected and paid to the entity.
(3) In addition to the Total Collections indicated above, the District also collected Uniform Fees (fees–in–lieu payments) for tax year 2007 of $12,178,987; for tax year 2006 of $11,549,652; for tax year 2005 of $11,407,865;
for tax year 2004 of $11,095,170; and for tax year 2003 of $12,680,328; from tax equivalent property associated with motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to
be registered with the State.
(4) In tax year 2007, the Board’s total tax collections were decreased by approximately $4.5 million due to an “equity adjustment.” This one time equity adjustment was given to certain property taxpayers’ who’s residential
and commercial market values were artificially increased due to technical errors. This adjustment lowered the
District’s current and total collections percentage ratios.
(Source: Information taken from the audited financial report of Davis County for the indicated years.)
Some Of The Largest Taxpayers
Taxpayer
Chevron USA Inc. ..................................
Freeport Center Associates .....................
PacifiCorp ...............................................
LHM Utah LLC (Layton Hills LLC) ......
Big West Oil ..........................................
Smith’s Food and Drug (2) .....................
Qwest Communications ..........................
Albertson’s (3) ........................................
Questar Gas.............................................
Lifetime Products....................................
Type of Business
Petroleum refinery
Distribution/warehouse
Electrical utility
Layton Mall/sales
Petroleum refinery
Distribution and stores
Communication utility
Distribution and stores
Natural gas utility
Manufacturing
Totals .................................................................................................
2007
Taxable
Value (1)
% of the
District’s
2007
Tax Value
$171,165,852
155,685,824
91,612,165
90,340,886
74,422,084
70,355,477
65,558,589
51,593,534
48,821,642
43,859,596
1.2%
1.1
0.6
0.6
0.5
0.5
0.5
0.4
0.3
0.3
$863,415,649
6.0%
(1) Taxable Value used in this table excludes the taxable value used to determine Uniform Fees on tangible personal property. See “Taxable, Fair Market And Market Value Of Property” above.
(2) Includes Smith’s Food King Properties and Smith’s Food and Drug Centers.
(3) Includes warehouse and food and drug stores.
(Source: County Auditor.)
28
THE DISTRICT’S COMPREHENSIVE ANNUAL FINANCIAL REPORT
Included with this supplement is the District’s Comprehensive Annual Financial Report for Fiscal
Year 2008.
Additionally, the District’s present and historical Comprehensive Annual Financial Reports may be
found on the “world wide web” at the State of Utah, State Auditor’s internet site at:
sao.state.ut.us
(The remainder of this page has been intentionally left blank.)
29
Davis School District
Davis County, Utah
Comprehensive
Annual Financial
Report
For the Fiscal Year
Ended
June 30, 2008
Comprehensive Annual Financial Report
OF THE
DAVIS SCHOOL DISTRICT
45 East State Street
Farmington, Utah 84025
For the Fiscal Year Ended
June 30, 2008
Marian H. Storey, President of the Board
W. Bryan Bowles, Superintendent
Bruce W. Williams, Business Administrator
Prepared by:
The Accounting Department
Reese J. Roberts, CPA
Finance Administrator
DAVIS SCHOOL DISTRICT
Table of Contents
Year Ended June 30, 2008
Page
Title Page
Table of Contents
i
ii-iv
INTRODUCTORY SECTION:
Letter of Transmittal
1-5
School Board Precinct Boundaries
6
List of Elected and Appointed Officials
7
Organizational Chart
8
GFOA Certificate of Achievement for Excellence in Financial Reporting
9
Model for Public Education
10
FINANCIAL SECTION:
Independent Auditor's Report
11-12
Management's Discussion and Analysis
13-22
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
23
Statement of Activities
24
Fund Financial Statements:
Balance Sheet - Governmental Funds
25
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net
Assets
26
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental
Funds
27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
28
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and
Actual - General Fund
29
Statements of Fund Net Assets - Proprietary Funds
30
Statements of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary
Funds
31
- ii -
DAVIS SCHOOL DISTRICT
Table of Contents
Year Ended June 30, 2008
Page
FINANCIAL SECTION (Continued):
Statements of Fund Cash Flows - Proprietary Funds
Notes to the Basic Financial Statements
32
33-48
Individual Fund Statements and Schedules:
Comparative Balance Sheet - General Fund
50
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
51
Comparative Balance Sheet - Major Debt Service Fund
52
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Major Debt Service Fund
53
Comparative Balance Sheet - Major Capital Projects Fund
54
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Major Capital Projects Fund
55
Combining Balance Sheet - Nonmajor Governmental Funds
56
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
57
Comparative Balance Sheet - Student Activities Fund - Nonmajor Special
Revenue Fund
58
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and
Actual - Student Activities Fund - Nonmajor Special Revenue Fund
59
Comparative Balance Sheet - State Mulit-District Program Fund Non-Major Special Revenue Fund
60
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and
Actual - State Multi-District Program Fund - Non-Major Special Revenue Fund
61
STATISTICAL SECTION (Unaudited):
Net Assets by Component
64
Changes in Net Assets
65
Fund Balances - Governmental Funds
66
Changes in Fund Balances - Governmental Funds
67
Assessed Value and Estimated Actual Value of Taxable Property
68
Direct and Overlapping Property Tax Rates
69
Principal Property Tax Payers
70
Property Tax Levies and Collections
71
- iii -
DAVIS SCHOOL DISTRICT
Table of Contents
Year Ended June 30, 2008
Page
Ratios of Outstanding Debt
72
Overlapping and Underlying General Obligation Debt
73
General Obligation Legal Debt Limit and Debt Capacity
74
Schedule of Annual Debt Service Requirements
75
STATISTICAL SECTION (Unaudited) (Continued):
76
Debt Service Schedule of Outstanding General Obligation Bonds
76
Demographic and Economic Statistics
77
Labor Market Data
78
Principal Employers
79
District Facilities and Personnel Positions
80
Average Daily Membership and October Enrollment
81
Expenditures by Function - General Fund
82
Expenditures per ADM by Function - General Fund
83
Weighted Pupil Units (WPU's) - Regular WPU's and Other by Formula
84
Student Enrollment Projections
85
American College Test (ACT) Results
86
Advanced Placement Exam Results
87
- iv -
Section I
Introductory
Section
DECEMBER 2, 2008
To President Storey, Members of the Board of Education, and
the Citizens of the Davis School District:
State law requires that school districts publish within five months of the
close of each fiscal year a complete set of financial statements presented
in conformity with accounting principles generally accepted in the United
States of America (GAAP) and audited by a firm of licensed certified
public accountants 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 of the United States. Pursuant to that requirement, we
hereby issue the comprehensive annual financial report (CAFR) of the
Davis School District (District) for the fiscal year ended June 30, 2008.
W. Bryan Bowles
Superintendent
Designed to meet the needs of a broad spectrum of readers of financial statements, this CAFR is divided
into three major sections:
• Introductory section – Introduces the reader to the report and includes this transmittal letter, a map of
School Board precinct boundaries, the list of elected and appointed officials, the organization chart of
the District, certificate of excellence in financial reporting, and the District’s model for public
education.
• Financial section – Consists of the independent auditor’s report, management’s discussion and
analysis, the basic financial statements, and combining and individual fund statements and schedules.
• Statistical section – Contains substantial financial information, but presents tables that differ from
financial statements in that they present non-accounting data, cover several years, and are designed to
reflect social and economic data and financial and fiscal trends as well as the fiscal capacity of the
District.
Internal controls. This report consists of management’s representations concerning the finances of the
District. Consequently, management assumes full responsibility for the completeness and reliability of
all of the information presented in this report. To provide a reasonable basis for making these
representations, management of the District has established a comprehensive internal control framework
that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the District’s financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
Independent audits. Squire & Company, PC, a firm of licensed certified public accountants, has
audited the District’s financial statements. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the District for the fiscal year ended June 30, 2008 are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering
an unqualified opinion, and that the District’s financial statements for the fiscal year ended June 30,
2008 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as
the first component of the financial section of this report
The independent audit of the financial statements of the District was part of a broader, federally
mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government’s internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in the District’s separately
issued Single Audit Report.
Management’s discussion and analysis. GAAP require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
management’s discussion and analysis (MD&A). This letter of transmittal is designed to complement
the MD&A and should be read in connection with it. The District’s MD&A can be found immediately
following the report of the independent auditors.
District profile. The District is located in the north central part of the state. The boundaries of the
District are contiguous with those of Davis County, Utah. Davis County is largely an urban county with
high concentrations of residential development. The District is a legally separate and fiscally
independent entity enjoying all rights and privileges accorded political subdivisions in the State of Utah.
Policymaking and legislative authority are vested in the Board of Education consisting of seven
members. The Board of Education is responsible for, among other things, developing policy, adopting
the budget, levying taxes, incurring bonded debt, supervising committees, and hiring both the
superintendent and business administrator. The superintendent and business administrator are
responsible for carrying out the policies of the Board of Education and oversee the day-to-day
operations of the District. The Board of Education is elected on a non-partisan basis. Board members
serve four-year staggered terms with no more than four board members elected every two years.
The major purpose of the District is to provide public education for those who reside within the
boundaries of the District. To accomplish this purpose, as of fall 2008, the District operates eight
traditional high schools, fourteen junior high schools, and 57 elementary schools. The District also
offers three special purpose programs: Pioneer Adult Rehabilitation Center (a community rehabilitation
program serving persons with disabilities), the Family Enrichment Center (providing preschool and
Head Start programs), and Farmington Bay (a youth correctional facility). In addition, the District
operates two alternative high schools, Mountain High and Canyon Heights, and one alternative junior
high, Davis Junior High. The District serves 65,014 students based on the October 1, 2008 enrollment
report.
The District also acts as the fiscal agent for the Davis County School District Foundation (Foundation).
The Foundation is a separate legal 501(c)(3) entity, and is reported as a discreetly presented component
-2-
unit in the District’s financial statements. The Foundation is a not-for-profit entity that solicits financial
support of public education through local school communities and community business partners.
Budgetary control. The District adopts an annual budget for its funds. This budget acts as the financial
operating plan for the entire year. Revisions may be implemented during the year authorizing a larger
appropriation of available resources through a public hearing and approval from the Board.
All annual appropriations lapse at fiscal year end with the exception of those indicated as a fund balance
reserve. During May of each year, the District superintendent submits to the Board a proposed operating
budget for the next fiscal year commencing July 1st. This budget includes proposed expenditures and
the means of financing them. Included also is a final budget for the current year ending June 30.
If the District does not exceed the certified tax rate, a public hearing is held prior to June 22 at which
time the budget is legally adopted by resolution of the Board after obtaining taxpayer input. If the
District exceeds the certified tax rate the budget is adopted in August after required advertisement of
proposed tax rate increases and a public hearing.
The level by which expenditures may not exceed appropriations has been interpreted by the State
Superintendent of Public Instruction to be the total budgeted expenditures of a given fund.
Economic condition and outlook. The economic outlook of the District is tied to and dependent on the
economic condition and outlook of the State of Utah since state aid provides 75.1% of general fund
revenues. The State of Utah has been able to conclude each fiscal year since fiscal 1988 with a general
fund surplus. However, the state’s general fund surplus for fiscal 2002 and 2003 was only achieved by
significant cuts in state spending. Although Utah’s economic growth has experienced steady growth
since 2004, the State’s economy is showing signs of slowing in response to the overall national
economic slowdown. The State is predicting a budgeted revenue shortfall for the current 2009 fiscal
year, and has implemented budget cuts to mitigate the shortfall. Public Education is currently being held
harmless for fiscal 2009, but faces the prospect of shrinking budget increases for 2010 despite the
statewide projection of increasing students. Davis School District projects student growth of over 700
students for 2010.
The state increased the value of the weighted pupil unit (WPU) by 1.5% for 2005, 4.5% for 2006, 6.0%
for 2007, and 4.0% for 2008. This growth in funding has been indicative of the steady growth in Utah’s
economy, and is reflected in the 2.5% growth in the WPU value for 2009.
The District was faced with budget reductions for fiscal years 2002, 2003, and 2004, and a few
additional reductions were necessary in 2005 to cover increased costs. The increase in state funds for
2006, 2007, 2008, and 2009 allows the District to cover the costs for new teachers and support staff to
meet the needs of continued student enrollment growth, and to also cover cost of living increases for
current staff. This funding also allows the District to cover inflationary increases in benefit costs,
utilities, fuel, and instructional materials.
The Utah Foundation reports that during the 1990’s as enrollments in K-12 (kindergarten thru 12th
grade) education slowed, so did state budgetary efforts. From 1995 to 2000, K-12 education spending
fell from 41.2 percent of state spending to 38.5 percent. If it had remained at 41.2 percent, an additional
$137 million would have been appropriated to K-12 schools. Despite a reduction in the percentage of
state funding for K-12 education of the later 1990’s, K-12 funding increased and class sizes decreased.
These improvements were made possible by a strong economy providing ample revenues at the same
time that school enrollment growth slowed and even declined. The current decade is proving to be far
-3-
more challenging for K-12 education than the 1990’s. A surge in K-12 enrollment is continuing through
the decade, the state property tax rate for schools continues to float down, and a smaller percentage of
income taxes are flowing to public education. These factors combine to give Utah the lowest per pupil
spending, and highest class sizes in the nation. New regulations from the federal government will also
require a greater level of achievement from students, teachers and school officials.
The District’s taxing authority rests with property taxes on residential and commercial property within
the District. District taxable property values in tax year 2007 increased 19.1% compared to an increase
of 10.3% in 2006. Local taxation accounts for only 15.2% of general fund revenues, and 23.0% of all
governmental fund revenues.
Student growth. The state fiscal 2009 school finance program is designed to provide every Utah school
district with a basic operation program of $2,577 per weighted pupil unit (WPU) (compared to $2,514
per WPU in fiscal 2008).
Based on information from Utah’s Bureau of Vital Records, the District expects the kindergarten
enrollment increase to accelerate because of a climb in the birth rate for Davis County. The District also
expects net migration into the County to remain positive, but to slow moderately. The District projects
an additional 4,906 students over the next five years measured from October 2008 to October 2013.
In response to continued student growth, registered voters of Davis County approved in record fashion
(89.6%) a $190,000,000 bonding authorization on February 5, 2002. The debt was issued over a four
year period to fund construction and renovation of facilities to accommodate student growth. The
District went to the taxpayers again on June 20, 2006 for a $230,000,000 bonding authorization. The
authorization passed with 79.2% approval, which will provide for facilities for student growth into 2010.
The District issued the first $47.0 million of this new authorization on September 6, 2006, another $55.0
million on July 10, 2007, and another $64.0 million on April 22, 2008.
Cash management and investments. The District maintains a cash and investment pool that is
available for use by all funds. This pool has deposits and other investments with varying maturity dates.
Investment earnings for fiscal 2008 remained at a total of $5.3 million, as increasing investment
balances were offset by decreasing interest rates.
The State of Utah Money Management Act with the State Money Management Council governs the
District’s investment policies and provides a measure of depository protection. The Council issues a list
of qualified depositories to public treasurers quarterly and monitors the maximum amount of public
funds each depository is eligible to hold in accordance with the law and the rules of the Council. State
law and Council rules govern the financial reporting requirements of qualified depositories in which
public funds may be deposited and prescribe the conditions under which the designation of a depository
shall remain in effect.
The District considers the rules and actions of the Utah Money Management Council to be necessary
and sufficient for adequate protection of its uninsured bank deposits.
Risk management. The District is self-insured for workers’ compensation. Unemployment
compensation is handled on a cost of benefits reimbursement basis with the State of Utah. The District
participates in the Utah State Risk Management system for property and liability insurance. This is a
pooled arrangement where the participating entities pay annual premiums, which are designed to pay
claims and build sufficient reserves so that the system will be able to protect the participating entities
with its own capital. The pool reinsures excess losses to preserve the capital base.
-4-
Post employment benefits. The District has an early retirement incentive plan which allows employees
the option to retire prior to age 65 and receive post employment stipends and healthcare benefits for up
to three years, or until Medicare eligibility, whichever comes first. The District finances these benefits
as healthcare premiums are paid. The District participated in a state-wide actuarial study to determine
the value and nature of post employment benefits. The District’s obligation is considered a “termination
benefit” and is accounted for using the guidelines of the Governmental Accounting Standards Board
(GASB) Statement No. 47, Accounting for Termination Benefits. The District is now taking steps to
designate a portion of the general fund balance over the next four years to fully fund this obligation.
Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the District for its Comprehensive Annual Financial Report for
the fiscal year ended June 30, 2007. The Certificate of Achievement is a prestigious national award,
recognizing conformance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded a Certificate of Achievement for Excellence, a governmental unit must publish
an easily readable and efficiently organized comprehensive annual financial report, whose contents
conform to program standards. Such reports must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. This is the twenty fifth year that the
District has received this prestigious award. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA.
Acknowledgments. The efficient and dedicated staff of the business department accomplished the
preparation of this report on a timely basis. We would like to express appreciation to all members of the
department who assisted in the preparation of this report. Special appreciation is expressed to Reese J.
Roberts, Finance Director, and his staff, who did most of the work in preparation of this report, and to
David Ayrton, Coordinator of Printing Services, and his staff for printing, layout, and design of the
report. We would also like to thank the members of the Board of Education for their interest and
support in conducting the financial affairs of the District in a responsible and progressive manner.
Respectfully submitted,
-5-
DAVIS SCHOOL DISTRICT
School Board Precinct Boundaries
Year Ended June 30, 2008
CLINTON
SUNSET
HILL AIR
SOUTH
WEBER
WESTPOINT
CLEARFIELD
7
6
SYRACUSE
LAYTON
4
5
KAYSVILLE
FRUIT
HEIGHTS
FARMINGTON
This map of Davis County displays
the seven precincts of School Board
representation.
3
Precinct
4
Marian H. Storey
Board President
7
Tamara Lowe
Board Vice-President
1
Barbara A. Smith
Board Member
2
William P. Moore
Board Member
3
Walter M. Bain
Board Member
5
Kathie L. Dalton
Board Member
6
Cheryl Werven
Board Member
CENTERVILLE
2
WEST
BOUNTIFUL
WOODS CROSS
BOUNTIFUL
1
NORTH SALT LAKE
-6-
DAVIS SCHOOL DISTRICT
List of Elected and Appointed Officials
Year Ended June 30, 2008
Elected Officials
Members of the Board of Education
Present Term Began
Present Term Expires
Initial Appointment
Barbara A. Smith
Precinct 1
January 2005
January 2009
January 1993
William P. Moore
Precinct 2
January 2005
January 2009
January 1997
Walter M. Bain
Precinct 3
January 2007
January 2011
January 2003
Marian H. Storey
President of the Board
Precinct 4
January 2005
January 2009
January 1997
Kathie L. Dalton
Precinct 5
January 2007
January 2011
January 1995
Cheryl Werven
Precinct 6
January 2007
January 2011
January 2003
Tamara O. Lowe
Vice President of the Board
Precinct 7
January 2007
January 2011
January 2003
The term of office for a board member is four years, beginning in January following the November election.
Appointed Officials
Present Term Began
Present Term Expires
Initial Appointment
W. Bryan Bowles
Superintendent
July 2008
July 2010
July 2002
Bruce D. Williams
Business Administrator
July 2008
July 2010
January 1996
The term of office for the Superintendent and Business Administrator is two years.
-7-
DAVIS SCHOOL DISTRICT
Organizational Chart
Year Ended June 30, 2008
Citizens of Davis County
Board of Education
Superintendent
Assistant
Superintendent /
Business
Administrator
Assistant
Superintendent
Assistant
Superintendent
Assistant
Superintendent
School Directors
Finance Department
Curriculum
Facilities
Management
Special Education
Senior High Schools
New Construction
Student Services
Junior High Schools
Federal Programs
Elementary Schools
Accounting
Budgeting
Career and
Technical Education
Professional
Development
Payroll
Alternative Ed/K12
Internal Audit
Environmental
Maintenance
Custodial
Services
Priority Schools
Planning
Early Childhood
Programs
Information and
Communication
Technology
Small Learning
Communities
Printing Services
Adult Education
Community School
Foundation
Administration
Risk
Management /
School Security
Support Services
Nutrition Services
Gifted and Talented
Human Resources
Purchasing /
Warehouse
Transportation
Community
Relations
P.A.R.C.
-8-
Research,
Assessment and
Accountability
Policy and School
Law
-9-
Davis School District
TIONAL PROC
A
C
ES
DU
a
s
B
e
d
ce
In
an
m
r
o
Essential Skills/Knowledge
Civic Responsibility
Access
Career Preparation
Personal Development
Needs
SEP
SE P
O
Goals
Assessmen
t
Open
Standards P
e
PURPOSES
OF EDUCATION
on
cti
rf
stru
S
E
Model for Public Education
Graduation
Graduates with Skills,
Knowledge, Values,
and Commitment to
Lifelong Learning...
Re
t
tea
ching nrichmen
/E
Public education has the mandate to develop within the hearts and minds
of each new generation the qualities of a moral populace, strong scholars,
committed citizens, and active workers.
The founding fathers knew that without these qualities, provided through public
education, our nation would not long endure.
The Davis School District accepts this mandate and focuses its work around
the four primary purposes of public education:
Essential Learning Skills
Civic Responsibility
Career Preparation
Personal Development
Educators collaborate with individual students and their parents to form a plan
of action (Student Education Plan and Student Education Occupation Plan)
which ties these four primary purposes to the needs and goals of the student
through the instructional process.
-10-
Section II
Financial
Section
AUDIT · TAX · ADVISORY
1329 South 800 East
· Orem, Utah 84097-7700 · (801) 225-6900 · Fax (801) 226-7739 · www.squire.com
Independent Auditor’s Report
Board of Education
Davis School District
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the remaining fund information
of Davis School District (the District), as of and for the year ended June 30, 2008, which collectively
comprise the District’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of District management. 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 of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the remaining fund information of the District as of June
30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof and
the respective budgetary comparison for the general fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated November 28,
2008 on our consideration of the District’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 results of that testing and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.
Management’s discussion and analysis which follows this report is not a required part of the basic
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
- 11 -
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, combining and individual
fund financial statements and schedules, and statistical tables are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The combining and individual fund
financial statements and schedules have been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory section and statistical tables have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
November 28, 2008
- 12 -
Management’s Discussion and Analysis
This section of Davis School District’s (District) comprehensive annual financial report presents management’s
discussion and analysis of the District’s financial performance during the year ended June 30, 2008. Please read it
in conjunction with the transmittal letter found on pages 1 through 5 of this report and the District’s financial
statements, which follow this section.
Financial Highlights
•
The District’s total assets exceeded liabilities by $189.2 million at the close of the most recent fiscal year.
•
During the year, expenses were $19.3 million less than the $469.7 million generated in taxes and other
revenues for governmental activities. Last year, expenses were less than revenues by $16.5 million.
•
Actual expenditures in the general fund were $6.6 million below final budgeted amounts, and resources
available for appropriation were $0.7 million below final budgeted amounts.
•
The District’s fund balance in the general fund increased by $2.3 million. An increase of $1.0 million in fund
balance was budgeted for the year.
•
On June 20, 2006, the registered voters of Davis County passed a bond authorization in the amount of $230.0
million for general obligation school building bonds for new school construction, land acquisitions,
renovation of existing school facilities, and related equipment and improvements. The voter authorization
passed convincingly with 79.2% in favor. The District issued $47.0 million of the new authorization on
September 5, 2006, $55.0 million on July 10, 2007, and another $64.0 million on April 22, 2008.
•
The District continues various capital projects and added $46.5 million of governmental activity capital assets
during the year. Projects in process include the completion of renovations at Clearfield and Woods Cross
High Schools (estimated costs of $7.1 million and $8.8 million respectively), and a new elementary in West
Layton (estimated cost of $16.0 million), all opening in the fall of 2008. Also underway is a new elementary
school in North Salt Lake (estimated cost of $17.0 million), and a new junior high school in West Layton
(estimated cost of $36.6 million), both to be completed in 2009.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements.
The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2)
fund financial statements, and 3) notes to the basic financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the assets and liabilities of the District, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a
useful indicator of whether the financial position of the District is improving or deteriorating.
The statement of activities presents information showing how the net assets of the District changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
The government-wide financial statements can be found on pages 23 to 24 of this report.
- 13 -
The government-wide financial statements of the District are divided into three categories:
•
Governmental activities. Most of the District’s basic services are included here, such as instruction, various
support services, district and school administration, operation and maintenance of facilities, student
transportation, and interest on long-term liabilities. Property taxes and state and federal grants finance most
of these activities.
•
Business-type activities. The District charges fees to customers and receives specific grants from various
local, state, and federal agencies to help cover the costs of certain services it provides. The District’s School
Food Services program and the Pioneer Adult Rehabilitation Center are included here.
•
Component unit. The District includes one other entity in the report, the Davis County School District
Foundation. Although legally separate, this “component unit” is included because the District is the fiscal
agent for it, and its purpose is to solicit donations to support educational programs of the District.
Fund financial statements. A fund is a group of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The District, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the District can be divided into two categories: governmental funds and proprietary funds.
•
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government’s near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The District maintains five individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, the Debt Service Fund, and the Capital Projects Fund, each
of which are considered to be major funds. Data from the other two governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of the governmental funds is provided in the
form of combining and individual fund statements and schedules elsewhere in the report.
The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement
has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25 to 29 of this report.
•
Proprietary funds. The District maintains two proprietary fund types. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. Internal
service funds are an accounting device used to accumulate and allocate costs internally among the District’s
various functions. The District uses one internal service fund, and it is included within governmental
activities in the government-wide financial statements.
- 14 -
Proprietary funds provide the same type of information as the government-wide financial statements, only in
more detail. The proprietary fund financial statements provide separate information for its two enterprise
funds (the School Food Services Fund is considered to be a major fund of the District) and for the internal
service fund. The basic proprietary fund financial statements can be found on pages 30 to 32 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential for a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the basic
financial statements can be found on pages 33 to 48 of this report.
Other information. Individual fund statements and schedules are presented immediately following the notes to
the basic financial statements. Individual fund statements and schedules can be found on pages 50 to 61 of this
report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the
case of the District, assets exceeded liabilities by $189.2 million at the close of the most recent fiscal year.
DAVIS SCHOOL DISTRICT'S Net Assets
June 30, 2008 and 2007
(in millions of dollars)
Governmental
Activities
2008
2007
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long-term liabilities outstanding
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Business-type
Activities
2008
2007
Total
2008
2007
$ 272.7
439.3
712.0
$ 160.4
409.6
570.0
$ 6.2
9.4
15.6
$ 4.9
9.9
14.8
$ 278.9
448.7
727.6
$ 165.3
419.5
584.8
169.3
368.8
538.1
150.9
271.4
422.3
0.2
0.1
0.3
0.2
0.1
0.3
169.5
368.9
538.4
151.1
271.5
422.6
9.4
5.9
$ 15.3
9.9
4.6
$ 14.5
144.0
41.0
4.2
$ 189.2
159.2
2.7
0.3
$ 162.2
134.6
41.0
(1.7)
$ 173.9
149.3
2.7
(4.3)
$ 147.7
Total
Change
2007-2008
$
113.6
29.2
142.8
18.4
97.4
115.8
$
(15.2)
38.3
3.9
27.0
•
Net assets of the District’s governmental activities increased 17.7% to $173.9 million. However, all of those
net assets are either restricted as to the purposes they can be used for or are invested in capital assets (land,
buildings and improvements, equipment, and so on). Consequently, unrestricted net assets showed a $1.7
million deficit at the end of this year. This deficit does not mean that the District does not have resources to
pay its bills next year. Rather, it is the result of having long-term commitments that are greater than currently
available resources. Specifically, the District did not include in past annual budgets the full amounts needed
to finance future liabilities arising from early retirement and to pay for unused employee vacation, personal
leave and sick leave days. The District will include these amounts in future years’ budgets as they come due.
•
The net assets of the District’s business-type activities increased by 5.5% to $15.3 million. Although
business-type activities report a positive unrestricted net asset balance of $5.9 million, these resources cannot
be used to make up for the net asset deficit in governmental activities. The District can only use these net
assets to finance the continuing operations of the school food services program and Pioneer Adult
Rehabilitation Center.
- 15 -
•
A portion of the District’s net assets reflects its investment in capital assets less any related debt (general
obligation bonds payable and obligations under capital leases less unspent bond proceeds) still outstanding
used to acquire those assets. The District uses these capital assets to provide services to students;
consequently, these assets are not available for future spending. Although the District’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
•
An additional portion of the District’s net assets represents resources that are subject to external restrictions
on how they may be used. The majority of the restricted balance is for debt service and capital projects.
The District’s total net assets increased by $27.0 million during the current year. This increase was the result of
ongoing construction projects to handle the continued influx of students, and increasing fund balances. Of the
$20.1 million increase in total net assets, unrestricted net assets increased by $3.9 million, while restricted net
assets increased by $38.3 million. The amount investment in capital assets net of related debt decreased by $15.2
million even though capital assets net of depreciation actually increased by $29.2 million. This decrease was due
to an increase in related debt of over $44.0 million because the District sold general obligation bonds twice during
the fiscal year. The District is still in the process of setting aside resources to fully fund the liability for early
retirement benefits over the next four years, and was able to add $1.0 million toward that during this fiscal year.
Net assets also increased by $6.9 million when the District reclassified its Student Activities Fund from an agency
fund to a special revenue fund.
•
The District’s total revenues increased 14.3% to $499.0 million. Federal and state aid make up 68.5% of the
District’s revenues; property taxes generate 21.8% of the District’s revenues.
•
The total cost of all programs and services increased by14.6% to $478.9 million. Instruction and support
services make up 65.8% and 25.4% respectively, of the District’s expenses
- 16 -
DAVIS SCHOOL DISTRICT'S Changes in Net Assets
Years Ended June 30, 2008 and 2007
(in millions of dollars)
Governmental
Activities
2008
2007
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
General revenues:
Property taxes
Federal and state aid not restricted
to specific purposes
Interest
Miscellaneous
Total revenues
Expenses:
Instruction
Support services:
Student
Instructional staff
District administration
School administration
Business administration
Operation and maintenance
of facilities
Student transportation
Interest on long-term liabilities
School food services
Pioneer Adult Rehab Center
Total expenses
Changes in net assets
Net assets, beginning
Recalssification of student
activities fund
Net assets, ending
$
6.1
89.2
$
Business-type
Activities
2008
2007
Total
2008
2007
$ 23.0
101.6
$ 23.5
92.0
Total
Change
2007-2008
7.0
80.3
$ 16.9
12.4
$ 16.5
11.7
$
(0.5)
9.6
108.6
98.0
-
-
108.6
98.0
10.6
240.3
5.3
20.2
469.7
195.6
5.3
6.4
392.6
29.3
28.2
240.3
5.3
20.2
499.0
195.6
5.3
6.4
420.8
44.7
13.8
78.2
315.3
253.5
-
-
315.3
253.5
61.8
13.4
17.7
3.2
23.4
11.2
11.9
15.3
3.3
21.0
9.7
-
-
13.4
17.7
3.2
23.4
11.2
11.9
15.3
3.3
21.0
9.7
1.5
2.4
(0.1)
2.4
1.5
39.4
13.3
13.5
450.4
19.3
147.7
36.5
12.5
12.4
376.1
16.5
131.2
20.8
7.7
28.5
0.8
14.5
18.8
7.8
26.6
1.6
12.9
39.4
13.3
13.5
20.8
7.7
478.9
20.1
162.2
36.5
12.5
12.4
18.8
7.8
402.7
18.1
144.1
2.9
0.8
1.1
2.0
(0.1)
76.2
2.0
18.1
6.9
$ 173.9
$ 147.7
$ 15.3
$ 14.5
6.9
$ 189.2
$ 162.2
6.9
$ 27.0
The narrative that follows considers the operations of governmental and business-type activities separately.
Governmental activities. The key elements of the increase in the District’s net assets for the year ended June 30,
2008 are as follows:
•
Revenues increased $61.5 million or 15.1%, and continue to be primarily from federal and state aid and local
property taxes.
State aid increased by 7.9% to $249.3 million as a reflection of increased funding for specific programs and
growth in student enrollment, while federal aid remained steady at $26.3 million. State aid is based primarily
on weighted pupil units (WPUs) and other appropriations. If a student is in membership a full 180 days, the
state awards the District one WPU. The state guarantees that if local taxes do not provide money equal to the
amount generated by the WPU the state will make up the difference with state funding. The value of the
WPU increased by 4.0% during the year ended June 30, 2008 ($2,514 during 2008 as compared to $2,417 in
2007).
- 17 -
Tax revenues increased by 10.8%. This increase was the result of increases in property taxable values, and
because of growth in the overall tax base.
Davis School District Revenues by Source Governmental Activities
Charges for
services,
interest, and
miscellaneous
7%
Operating grants
and
contributions
19%
Property taxes
23%
Federal and state
aid not restricted
to specific
purposes
51%
•
Expenses for governmental activities increased $59.2 million, or 15.1%. The District was able to fund
increases in health insurance benefits and contractual increases in personnel costs.
Davis School District Expenses by Function Governmental Activities
Interest on longterm liabilities
3%
Instruction
70%
Other supporting
services
18%
Operation and
maintenance of
facilities
9%
Business-type activities. The key elements of the $0.8 million increase of the District’s net assets for the year
ended June 30, 2008, are as follows:
•
Revenues increased 3.9% while expenses increased 7.1%. With normal increases in operating costs, business
activities showed a smaller increase in net assets than last year.
- 18 -
Financial Analysis of the District’s Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds. The focus of the District’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s
financing requirements. As the District completed the year, its governmental funds reported a combined fund
balance of $101.6 million, $86.0 million more than the previous year. This increase was due primarily to an
$81.3 million increase in the capital projects fund balance. General Obligation Bonds were sold twice during the
fiscal year resulting in the large fund balance increase. At year end, the District had $52.8 million in unspent
bond proceeds. The general fund had a $2.3 million increase in fund balance due to better than expected tax
collections, and lower than expected expenditures. The debt service fund had a $1.6 million increase in fund
balance due once again to better than expected tax collections. In addition, the following changes in revenues and
expenditures should be noted:
•
Revenues for general District purposes totaled $379.5 million, an increase of 14.2%, during the current fiscal
year. Revenues for debt service and capital projects were up 12.0% and 33.3% respectively. State revenues
were up 19.0% in the general fund, and 98.0% in the capital projects fund due to increases in state
appropriations. Taxes were up 10.0% due to growth in the tax base, and increases in existing taxable values.
Federal revenues were down $0.3 million or 1.1% due to changes in some federal grants.
•
Expenditures for general District purposes totaled $382.3 million, an increase of 13.6% during the current
fiscal year. Instruction represents 68.8% of general fund expenditures. Debt service expenditures increased
7.7%, and capital project expenditures were down 10.8%.
•
General fund salaries totaled $241.6 million while the associated employee benefits of retirement, social
security, and insurance (health and accident, industrial, and unemployment) added $91.0 million to arrive at
87.0% of total general fund expenditures.
Governmental funds report the differences between their assets and liabilities as fund balance, which is divided
into reserved and unreserved portions. Reservations indicate the portion of the District’s fund balances that are
not available for appropriation. The unreserved fund balance is, in turn, subdivided between designated and
undesignated portions. Designations reflect the District’s self-imposed limitation on the use of otherwise
available expendable financial resources in governmental funds. Undesignated balances in the general fund are
required by state law to be appropriated in the following year’s budget. Fund balances of debt service, capital
projects, and other governmental funds are restricted by state law to be spent for the purpose of the fund and are
not available for spending at the District’s discretion. The $9.8 million fund balance of the general fund is
partially reserved or designated for inventories and employee benefits, with the remainder reported as unreserved.
General Fund Budgetary Highlights
During the year, the Board revised the District’s budget. Budget amendments were to reflect changes in programs
and related funding. The difference between the original budget and the final amended budget was an increase of
$5.7 million or 1.5% in total general fund expenditures. The most significant differences may be summarized as
follows:
•
$3.9 million or 1.5% increase in instruction for staffing and compensation increases, a $1.4 million or 8.6%
increase in supporting services – instructional staff services for staffing increases and new material costs for
media centers, and a $0.8 million or 7.8% increase in supporting services – business administration for staff
increases.
During the year, final budgeted revenues were more than original budgetary estimates by $6.2 million or 1.7%, to
account for revised estimates for state funding and federal grants.
- 19 -
Even with these adjustments, actual expenditures were $6.6 million below final budgeted amounts. The most
significant positive variances were $3.2 million in instruction, and $1.1 million in supporting services - operation
and maintenance of facilities. These variances were due primarily to budgeting for federal and state grants that
were not fully expended, and to utility costs being less than expected. Additionally, resources available for
appropriation were $0.7 million below the final budgeted amount. Federal and state aid variances primarily result
from expenditure-driven federal and state grants that are included in the budgets at their full amounts. Such
grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant
requirements have been met; unspent grant amounts are carried forward and included in the succeeding year’s
budget. Therefore, actual grant revenues and expenditures are normally less than the amounts budgeted.
Capital Asset and Debt Administration
Capital Assets. The capital projects fund is used to account for the costs incurred in acquiring and improving
sites, constructing and remodeling facilities, and procuring equipment necessary for providing educational
programs for all students within the District. The District spent $46.5 million in 2007 for capital assets. Projects
in process include the completion of renovations at Clearfield and Woods Cross High Schools (estimated costs of
$7.1 million and $8.8 million respectively), and a new elementary school in West Layton (estimated cost of $16.0
million), all opening in the fall of 2008. Also underway is a new elementary school in North Salt Lake (estimated
cost of $17.0 million), and a new junior high school in West Layton (estimated cost of $36.6 million), both to be
completed in 2009.
The District continues to experience both growth in total students and a shift in student population to the
northwest section of the District. The opening of these new schools and additions and renovations at existing
schools help meet some of the needs, but temporary classrooms are still in use to accommodate housing needs
until other permanent facilities can be constructed. The District purchased 12 new portable classrooms in 2008
for a total inventory of 308 portable classrooms representing approximately 282,000 square feet.
Capital assets at June 30, 2008 and 2007 are outlined below:
DAVIS SCHOOL DISTRICT'S Capital Assets
June 30, 2008 and 2007
(net of accumulated depreciation in millions of dollars)
Governmental
Activities
2008
2007
Land
Construction in progress
Buildings and improvements
Furniture and equipment
Transportation equipment
Total capital assets
$ 34.2
32.8
361.0
3.7
7.6
$ 439.3
$ 31.1
80.5
287.8
3.2
7.0
$ 409.6
Business-type
Activities
2008
2007
$
$
8.0
1.4
9.4
$
$
8.3
1.6
9.9
Total
2008
2007
$ 34.2
32.8
369.0
5.1
7.6
$ 448.7
$ 31.1
80.5
296.1
4.8
7.0
$ 419.5
Total
Change
2007-2008
$
$
3.1
(47.7)
72.9
0.3
0.6
29.2
Additional information on the District’s capital assets can be found in Note 4 to the basic financial statements.
Debt Administration. On June 20, 2006, by a 79.2% margin, the public voted to authorize the District to issue
$230.0 million of general obligation school building bonds for new school construction, land acquisitions, and
renovation of existing school facilities and related equipment and improvements. This debt authorization was
sought to cope with the demands of student growth over the next five years, with student migration to the
northwest portion of the county, and to help maintain the District’s investment in its capital assets.
- 20 -
On September 5, 2006, the District issued the first $47.0 million of the new authorization in general obligation
bonds. The District issued an additional $55.0 million of the bonding authorization on July 10, 2007, and another
$64.0 million on April 22, 2008.
The general obligation bonded debt of the District is limited by state law to 4% of the fair market value of the
total taxable property in the District. The legal debt limit at June 30, 2008 is $951.2 million. General obligation
debt, net of unamortized premiums and deferred amounts on refunding, at June 30, 2008 is $349.9 million,
resulting in a legal debt margin of $601.3 million.
DAVIS SCHOOL DISTRICT'S Outstanding Debt
June 20, 2008 and 2007
Net of Accumulated Ammortization
(in millions of dollars)
Governmental activities
Net general obligation bonds
2008
$
349.9
2007
$
252.6
Total
Change
2007-2008
$
97.3
Although it is not unusual for governments to have a 30-year bond payoff schedule, the District maintains an
aggressive schedule to retire all of its general obligation bonds by 2028.
Additional information on the District’s long-term debt can be found in Note 8 to the basic financial statements.
Changing Enrollment within the District
The District went through a five-year period of flat growth in student enrollment between 1998 and 2002, but
continued to experience a change in school populations due to a migration of students to the northwest section of
the District. The District began seeing the beginning of increasing student enrollments in fiscal year 2003 with an
increase of 636 students. Student enrollment counts are officially taken on October 1 of each year. The chart
below reflects the counts taken between October 1, 2004 and October 1, 2008, and shows a total student growth
of 5,007 students over the five year period, an 8.3% increase.
DAVIS SCHOOL DISTRICT'S Student Enrollment
District fiscal year
2005
2006
2007
2008
2009
October 1st enrollment
60,614
62,349
62,832
64,232
65,014
Total enrollment change
607
1,735
483
1,400
782
Percentage change
1.0%
2.9%
0.8%
2.2%
1.2%
Total
5,007
8.3%
The District has ongoing planning efforts to analyze and deal with the issues related to new growth. On June 20,
2006 voters approved a $230.0 million general obligation bond authorization, the largest in District history.
Resources from this new bonding authorization will be used for construction and renovation of facilities over the
next four years. Projects include completion of three more elementary schools and one new junior high school, as
well as various school classroom additions and renovations. Planning is underway for the next voter authorization
in one to two years in order to meet the ongoing needs of the District’s 20 year capital plan, and to provide
continuous cash flows for the necessary capital projects. With bond proceeds as well as ongoing capital funds
- 21 -
from taxes and state capital equalization, the District expects to meet the demands of projected student growth
over both the short-term planning horizon (5 years) as well as the long-term (20+ years).
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors a
general overview of the District’s finances and to demonstrate the District’s accountability for the money it
receives. If you have any questions about this report or need additional financial information, please contact the
Davis School District, Office of the Business Administrator, 45 East State Street (P.O. Box 588), Farmington, UT
84025.
- 22 -
DAVIS SCHOOL DISTRICT
Statement of Net Assets
June 30, 2008
Primary Government
Governmental
Business-type
Activities
Activities
Assets:
Cash and investments
Receivables:
Property taxes
Other local
State of Utah
Federal government
Internal balances
Inventories
Bond issuance costs, net
of accumulated amortization
Capital assets:
Land and construction in progress
Other capital assets, net
of accumulated depreciation
Total assets
Liabilities:
Accounts payable
Notes payable
Accrued interest
Accrued salaries
Deferred revenue - property taxes
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets:
Invested in capital assets, net of
related debt
Restricted for:
Debt service
Capital projects
State multi-district programs
Scholarships and awards
Unrestricted
Total net assets
$ 142,975,081
$
110,245,364
1,443,469
319,387
8,909,251
41,610
7,069,016
2,544,306
1,244,676
858,192
234,565
(41,610)
1,300,461
Component
Unit
District
Foundation
Total
$ 145,519,387
$
110,245,364
2,688,145
1,177,579
9,143,816
8,369,477
843,549
5,945
-
1,656,771
-
1,656,771
-
66,931,588
-
66,931,588
-
372,348,337
9,421,174
381,769,511
711,939,874
15,561,764
727,501,638
849,494
5,666,661
250,000
1,038,995
58,741,506
103,596,768
157,984
-
5,824,645
250,000
1,038,995
58,741,506
103,596,768
3,131
-
29,075,864
339,692,400
40,260
97,101
29,116,124
339,789,501
-
538,062,194
295,345
538,357,539
3,131
134,624,761
9,421,174
144,045,935
-
5,845,245
4,586,918
28,487,591
7,904,535
4,119,120
$ 15,266,419
$ 189,144,099
4,586,918
28,487,591
7,904,535
(1,726,125)
$ 173,877,680
The notes to basic financial statements are an integral part of this statement.
- 23 -
846,363
$
846,363
DAVIS SCHOOL DISTRICT
Statement of Activities
Year Ended
Y
E d d JJune 30
30, 2008
ct t es/ u ct o s
Activities/Functions
Primary government:
Governmental activities:
Instruction
Supporting services:
Student
S
ude
Instructional staff
District administration
School administration
Business administration
Operation and maintenance of facilities
p
Student transportation
term liabilities
Interest on long
long-term
pe ses
Expenses
$ 315,325,500
,
,
Total governmental activities
B i
t
ti iti
Business-type
activities:
School food services
Pioneer
Adult
Pi
Ad lt Rehabilitation
R h bilit ti Center
C t
Total
business-type
T t lb
i
typ activities
ti iti
Total
primary
governmentt
T t lp
i
yg
Component unit:
Davis School District Foundation
Program Revenues
Operating
Charges for
Grants and
Se
ces
Co
t but o s
Services
Contributions
$
,
,
5,685,499
$
Net (Expense) Revenue and Changes in Net Assets
Component
Primary Government
Unit
Governmental
Business-type
District
Business type
ct t es
ct t es
ota
ou dat o
Activities
Activities
Total
Foundation
,
,
71,657,359
$ ((237,982,642)
,
,
)
$ ((237,982,642)
,
,
)
13,436,051
3, 36,05
17,679,053
17 679 053
,
,
3,223,304
23 358 895
23,358,895
11,225,624
,
,
39,353,038
39 353 038
,
,
13,318,469
13 534 129
13,534,129
401,668
401 668
-
4,057,993
,05 ,993
3,764,658
3 764 658
,
1,176
362 698
362,698
1,210,714
,
,
23,440
23 440
,
,
8,127,702
-
(9,378,058)
(9,3
8,058)
(13,914,395)
(13
914 395)
((3,222,128)
,
,
)
(22 996 197)
(22,996,197)
((10,014,910)
,
,
)
(38,927,930)
(38 927 930)
((5,190,767)
,
,
)
(13 534 129)
(13,534,129)
(9,378,058)
(9,3
8,058)
(13,914,395)
(13
914 395)
((3,222,128)
,
,
)
(22 996 197)
(22,996,197)
((10,014,910)
,
,
)
(38,927,930)
(38 927 930)
((5,190,767)
,
,
)
(13 534 129)
(13,534,129)
450 454 063
450,454,063
6 087 167
6,087,167
89 205 740
89,205,740
(355 161 156)
(355,161,156)
(355 161 156)
(355,161,156)
20 750 195
20,750,195
7,722,053
7 722 053
9 317 741
9,317,741
7,585,887
7 585 887
11 683 068
11,683,068
641,764
641 764
28,472,248
28 472 248
$ 478,926,311
478 926 311
$
$
$
1,264,138
1 264 138
16,903,628
16 903 628
12,324,832
12 324 832
22,990,795
22 990 795
$ 101,530,572
101 530 572
-
$
-
$
-
250 614
250,614
505,598
505 598
756,212
756 212
(355 161 156))
((355,161,156)
756,212
756 212
250 614
250,614
505,598
505 598
756,212
756 212
(354 404 944))
((354,404,944)
1,284,814
1 284 814
General
G
l revenues:
Property taxes levied for:
B
i llevy sett b
t t ffor K
12 iinstruction
t ti
Basic
by state
K-12
K-12
Board voted leeway for K
12 instruction
Class
size
Cl
i reduction
d ti
Reading program
T
t ti
Transportation
Community recreation
General
G
l obligation
bli ti bond
b d debt
d bt service
i
Capital outlay
T percentt off basic
b i for
f capital
it l outlay,
tl
t tb k and
d supplies
li
Ten
textbooks
Federal and state revenue not restricted to specific purposes
Interest
I t
t
Miscellaneous
$
20,676
20 676
20
755 944
20,755,944
24 268 903
24,268,903
6,067,297
6 067 297
1,835,310
1 835 310
2 335 233
2,335,233
2
950 136
2,950,136
38,948,551
38 948 551
1,104,479
1 104 479
10 408 239
10,408,239
240 324 714
240,324,714
5,270,686
5 270 686
20,191,090
20 191 090
-
20
755 944
20,755,944
24 268 903
24,268,903
6,067,297
6 067 297
1,835,310
1 835 310
2 335 233
2,335,233
2
950 136
2,950,136
38,948,551
38 948 551
1,104,479
1 104 479
10 408 239
10,408,239
240 324 714
240,324,714
5,270,686
5 270 686
20,191,090
20 191 090
8,316
8 316
-
Total general revenues
374,460,582
374 460 582
-
374,460,582
374 460 582
8,316
8 316
Change in net assets
N assets - beginning
b gi i g
Net
19,299,426
19 299 426
1 4, 8,2 4
154,578,254
756,212
756 212
14, 10,20
14,510,207
20,055,638
20 055 638
169,088,461
169,088,461
28,992
28 992
81 ,3 1
817,371
15,266,419
15,266,419
189,144,099
$ 189,144,099
N assets - ending
di g
Net
173,877,680
$ 173,877,680
The notes to basic financial statements are an integral part of this statement
statement.
- 24 -
$
$
846,363
846,363
DAVIS SCHOOL DISTRICT
Balance Sheet
Governmental Funds
June 30, 2008
General
Assets:
Cash and investments
Receivables:
Property taxes
Other local
State of Utah
Federal government
Due from other funds
Inventories
$ 49,088,547
Total assets
Fund Balances:
Reserved for inventories
Reserved for construction
commitments
Unreserved:
Designated for:
Workers compensation
Termination benefits
Capital projects
Undesignated, reported in:
General fund
Debt service fund
Special revenue funds
Total fund balances
Total liabilities and
fund balances
Other
Governmental
Funds
Total
Governmental
Funds
$
7,935,419
$ 142,975,081
13,325
18,372
-
110,245,364
1,339,921
319,387
8,909,251
4,945,000
3,068,975
$ 271,802,979
$ 84,466,059
57,366,237
1,327,652
306,062
8,890,879
4,945,000
3,068,975
41,759,237
-
11,119,890
12,269
-
$ 124,993,352
$ 43,244,293
$ 95,598,218
$
7,967,116
$
$
$
62,581
-
115,240,440
$
Capital
Projects
1,485,056
Liabilities and fund balances:
Liabilities:
Accounts payable
$
893,548
Notes payable
250,000
Accrued payroll and withholding
58,741,506
Deferred revenue - property taxes
55,355,386
Total Liabilities
Major Funds
Debt
Service
40,414,311
40,414,311
3,068,975
-
-
300,000
2,500,000
-
3,762,231
10,721,800
14,484,031
62,581
-
4,718,360
250,000
58,741,506
106,491,497
170,201,363
-
3,068,975
-
63,474,595
-
63,474,595
-
17,639,592
-
300,000
2,500,000
17,639,592
3,883,937
-
2,829,982
-
9,752,912
2,829,982
81,114,187
$ 124,993,352
$ 43,244,293
$ 95,598,218
-
$
7,904,535
3,883,937
2,829,982
7,904,535
7,904,535
101,601,616
7,967,116
$ 271,802,979
The notes to basic financial statements are an integral part of this statement.
- 25 -
$
DAVIS SCHOOL DISTRICT
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2008
Total fund balances for governmental funds
$ 101,601,616
Total net assets reported for governmental activities in the statement of net assets 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
Buildings and improvements, net of $221,232,313 accumulated depreciation
Furniture and equipment, net of $5,460,037 accumulated depreciation
Transportation equipment, net of $16,756,757 accumulated depreciation
$
33,513,057
32,769,709
360,150,990
3,220,434
7,653,313
437,307,503
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 defered revenue in the funds.
2,894,729
Interest on long-term debt is not accrued in the governmental funds, but rather is recognized as an
expenditure when due. Accrued interest for general obligation bonds is $936,959 and accrued interest for
obligations under capital leases is $102,036.
(1,038,995)
Bond issuance costs are reported as expenditures in the governmental funds. The cost is $2,264,579 and
accumulated amortization is $607,808.
1,656,771
An internal service fund is used by management to charge the costs of warehouse services to individual
funds and other school districts. The assets and liabilities of the internal service fund are included in
governmental activities in the statement of net assets. Internal service fund net assets at year-end are:
176,448
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 assets. Balances at year-end are:
Bonds payable
Unamortized premiums
Unamortized refunding deferrals
Obligations under capital leases
Accrued vacation
Accrued sick leave
Accrued personal leave
Early retirement payable
(342,880,000)
(7,853,771)
868,197
(7,621,136)
(3,457,100)
(1,619,606)
(1,101,358)
(5,055,618)
Total net assets - governmental activities
(368,720,392)
$ 173,877,680
The notes to basic financial statements are an integral part of this statement.
- 26 -
DAVIS SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2008
Major Governmental Funds
Debt
Capital
General
Service
Projects
Revenues:
Property taxes
Interest
Other local sources
State of Utah
Federal government
$
Total revenues
$
379,549,306
Expenditures:
Current:
Instruction
Supporting services:
Students
Instructional staff
District administration
School administration
Business administration
Operation and maintenance of
facilities
Student transportation
Capital outlay
Debt service:
Tax anticipation note interest
Bond principal
Bond interest
Bond isuance costs
Capital lease payments
Fees and miscellaneous charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Total other financing sources
(uses)
Net change in fund balances
11,436,460
3,016,129
825,847
15,795,421
-
Total
Governmental
Funds
$
8,332
16,725,341
2,282,212
51,242
$ 107,842,358
5,270,686
25,684,292
303,207,688
26,322,766
19,067,127
468,327,790
18,298,111
280,577,305
31,073,857
-
-
13,312,679
17,574,702
3,204,530
22,712,165
10,946,328
-
-
38,100,173
12,138,708
-
-
-
13,312,679
17,574,702
3,204,530
22,712,165
10,946,328
68,920,760
-
38,100,173
12,138,708
68,920,760
-
1,345,800
23,605,000
12,968,323
425,554
2,208,107
38,285
1,345,800
667,213
-
23,605,000
12,968,323
38,285
425,554
1,540,894
-
382,281,492
36,611,608
70,887,208
2,025,892
(39,813,351)
18,298,111
769,016
508,078,419
(39,750,629)
5,000,000
-
119,000,000
2,364,047
2,617,600
1,743,001
(5,000,000)
-
119,000,000
2,364,047
2,617,600
1,743,001
-
5,000,000
-
120,724,648
-
125,724,648
2,025,892
7,485,098
$
$
262,279,194
2,267,814
Fund balances - beginning
38,637,500
38,637,500
(2,732,186)
Other financing sources (uses):
General obligation bonds issued
General obligations bonds premium
Capital leases
Sale of capital assets
Transfers
Fund balances - ending
57,768,398
2,246,225
8,133,104
285,130,055
26,271,524
Other
Governmental
Funds
9,752,912
80,911,297
804,090
$
2,829,982
769,016
202,890
$
81,114,187
$
The notes to basic financial statements are an integral part of this statement.
- 27 -
85,974,019
7,135,519
15,627,597
7,904,535
$ 101,601,616
DAVIS SCHOOL DISTRICT
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Government Funds to the Statement of Activities
Year Ended June 30, 2008
Net change in fund balances-total governmental funds
$ 85,974,019
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, equipment with
an initial, individual cost of more than $5,000 and buildings and improvements with an initial, individual cost of more
than $100,000 are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlays
Gain on sale of capital assets
Proceeds from sales of capital assets
Depreciation expense
$ 46,340,828
593,965
(1,743,001)
(15,564,361)
29,627,431
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 assets, 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 assets.
Obligations under capital leases
Interest expense - capital leases
Principal payments of capital leases
(2,617,600)
59,551
2,659,814
101,765
The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported as
an expenditure. In the statement of net assets, 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:
General obligation bond proceeds
Bond premium
Bond issuance costs
Amortization of deferred amounts on refunding
Amortization of bond premium
Amortization of bond issuance costs
Repayment of bond principal
Interest expense - general obligation bonds
(119,000,000)
(2,364,047)
425,554
(134,438)
633,202
(136,511)
23,605,000
(191,743)
Property tax revenues received prior to the year for which they are being levied are reported as deferred revenue in
the governmental funds. They are, however, recorded as revenues in the statement of activities. Deferred property
tax revenues increased this year.
(97,162,983)
831,734
In the statement of activities, certain operating expenses - compensated absences (vacation and sick and personal
leave) and termination benefits (early retirement) - 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). During this year, accruals changed by the following amounts:
Accrued vacation
Accrued sick and personal leave
Early retirement payable
(130,141)
(28,087)
26,767
Internal service funds are used by the District to charge the costs of warehouse services to individual funds. The
change in net assets of the internal service funds is reported with governmental activities.
Change in net assets of governmental activities
(131,461)
58,921
$ 19,299,426
The notes to basic financial statements are an integral part of this statement.
- 28 -
DAVIS SCHOOL DISTRICT
Statement of Revenues,
Revenues Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Y
Year
E d d June
Ended
J
30
30,, 2008
Budgeted Amounts
Original
Final
Revenues:
Property taxes
Interest
Oth local
Other
l
l sources
State of Utah
Federal government
$
Total revenues
Expenditures:
Current:
Instruction
Supporting services:
Students
Instructional staff
District administration
School administration
Business administration
Op
Operation
and maintenance off facilities
f
Student transportation
Debt service - interest on tax anticipation notes
Total expenditures
Excess of expenditures over revenues
56,523,400
1 664 000
1,664,000
8,314,200
8,314,200
282,641,003
24 922 163
24,922,163
$
56,731,500
1 693 600
1,693,600
8,271,200
8,271,200
286,886,202
26 713 544
26,713,544
Actual
Amounts
$
57,768,398
2 246 225
2,246,225
8,133,104
8,133,104
285,130,055
26 271 524
26,271,524
Variance with
Final Budget
g Positive
(Negative)
$
1,036,898
552 625
552,625
(138,096))
((138,096)
(1,756,147)
(442 020)
(442,020)
374 064 766
374,064,766
380 296 046
380,296,046
379 549 306
379,549,306
(746 740)
(746,740)
262 196 466
262,196,466
266 111 346
266,111,346
262 946 407
262,946,407
3 164 939
3,164,939
13,414,700
13
414 700
16 686 500
16,686,500
3,043,400
23 150 200
23,150,200
10 123 700
10,123,700
40,573,800
,
,
12,576,000
1 400 000
1,400,000
13,701,000
13
701 000
18 113 800
18,113,800
3,465,100
23 298 300
23,298,300
10 911 400
10,911,400
39,196,100
,
,
12,699,000
1 400 000
1,400,000
13,312,679
13
312 679
17 574 702
17,574,702
3,204,530
22 712 165
22,712,165
10 946 328
10,946,328
38,100,173
,
,
12,138,708
1 345 800
1,345,800
388,321
388
321
539 098
539,098
260,570
586 135
586,135
(34 928)
(34,928)
1,095,927
,
,
560,292
54 200
54,200
383 164 766
383,164,766
388 896 046
388,896,046
382 281 492
382,281,492
6 614 554
6,614,554
(9 100 000)
(9,100,000)
(8 600 000)
(8,600,000)
(2 732 186)
(2,732,186)
5 867 814
5,867,814
Other financing sources (uses):
Transfers
9 600 000
9,600,000
9 600 000
9,600,000
5 000 000
5,000,000
(4 600 000)
(4,600,000)
Net change in fund balances
500,000
1,000,000
2,267,814
1,267,814
F db
Fund
balances
l
-b
beginning
gi i g
Fund balances - ending
7 485 098
7,485,098
$
7 985 098
7,985,098
7 485 098
7,485,098
$
8 485 098
8,485,098
7 485 098
7,485,098
$
9 752 912
9,752,912
The notes to basic financial statements are an integral part of this statement.
- 29 -
$
1 267 814
1,267,814
DAVIS SCHOOL DISTRICT
Statements of Fund Net Assets
Proprietary Funds
June 30, 2008 with comparative totals for 2007
Major Enterprise Fund School Food Services
2008
2007
Assets:
Current assets:
Cash and investments
Receivables:
Local
State of Utah
Federal government
Due from other funds
Inventories of supplies
$
630
$
Business-type Activities - Enterprise Funds
Other Enterprise Fund Pioneer Adult Rehab Center
2008
2007
1,590
$
2,543,676
$
1,954,604
$
Governmental Activities Internal Service Fund
District Warehouse
2008
2007
Totals
2008
2,544,306
2007
$
1,956,194
$
-
$
-
62,664
798,404
234,565
1,300,461
10,824
767,294
239,900
1,248
1,354,718
1,182,012
59,788
-
1,268,307
59,801
-
1,244,676
858,192
234,565
1,300,461
1,279,131
827,095
239,900
1,248
1,354,718
103,548
41,610
4,000,041
52,867
447,594
3,883,268
Total current assets
2,396,724
2,375,574
3,785,476
3,282,712
6,182,200
5,658,286
4,145,199
4,383,729
Capital assets:
Land
Buildings and improvements
Equipment
Accumulated depreciation
6,981,395
4,066,839
(4,501,909)
6,981,395
4,038,739
(4,078,646)
3,660,322
520,401
(1,305,874)
3,516,219
609,113
(1,194,149)
10,641,717
4,587,240
(5,807,783)
10,497,614
4,647,852
(5,272,795)
648,822
1,519,215
1,228,149
(1,423,764)
648,822
1,519,215
1,089,329
(1,303,941)
Net capital assets
6,546,325
6,941,488
2,874,849
2,931,183
9,421,174
9,872,671
1,972,422
1,953,425
8,943,049
9,317,062
6,660,325
6,213,895
15,603,374
15,530,957
6,117,621
6,337,154
72,071
20,694
41,610
72,340
19,426
671,454
85,913
19,566
-
58,165
55,132
-
157,984
40,260
41,610
130,505
74,558
671,454
948,301
18,014
4,945,000
703,912
17,346
5,469,620
134,375
763,220
105,479
113,297
239,854
876,517
5,911,315
6,190,878
Total assets
Liabilities:
Current liabilities:
Accounts payable
Compensation liability
Due to other funds
Total current liabilities
Long-term liabilities:
Compensation liability
Total liabilities
Net assets:
Invested in capital assets
Unrestricted
Total net assets
$
68,851
64,633
28,250
79,600
97,101
144,233
29,858
28,749
203,226
827,853
133,729
192,897
336,955
1,020,750
5,941,173
6,219,627
6,546,325
2,193,498
6,941,488
1,547,721
2,874,849
3,651,747
2,931,183
3,089,815
9,421,174
5,845,245
9,872,671
4,637,536
1,972,422
(1,795,974)
1,953,425
(1,835,898)
8,739,823
$
8,489,209
$
6,526,596
$
6,020,998
$
15,266,419
$
The notes to basic financial statements are an integral part of these statements.
- 30 -
14,510,207
$
176,448
$
117,527
DAVIS SCHOOL DISTRICT
Statements of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
Year Ended June 30, 2008 with comparative totals for 2007
Major Enterprise Fund School Food Services
2008
2007
Operating revenues:
Charges for services
Lunch sales
Interest
Other local
$
Total operating revenues
Operating expenses:
Cost of food sold
Salaries and benefits
Depreciation
Indirect charges
Other
Total operating expenses
Operating income (loss)
Nonoperating income:
Federal subsidies
Contributed food commodities
State subsidies
Total nonoperating income
Change in net assets
Total net assets - beginning
Total net assets - ending
8,598,987
718,754
$
7,913,990
647,605
$
7,340,193
245,694
$
7,964,686
3,745
$
Governmental Activities Internal Service Fund
District Warehouse
2008
2007
Totals
2008
7,340,193
8,598,987
964,448
2007
$
7,964,686
7,913,990
651,350
$
1,658,067
-
$
1,665,544
-
9,317,741
8,561,595
7,585,887
7,968,431
16,903,628
16,530,026
1,658,067
1,665,544
9,667,714
8,235,967
423,263
501,458
1,921,793
8,880,653
7,296,538
394,519
448,938
1,817,695
5,849,882
151,950
271,100
1,449,121
5,907,769
147,274
161,410
1,572,071
9,667,714
14,085,849
575,213
772,558
3,370,914
8,880,653
13,204,307
541,793
610,348
3,389,766
1,161,168
119,822
318,156
1,307,597
91,303
230,882
20,750,195
18,838,343
7,722,053
7,788,524
28,472,248
26,626,867
1,599,146
1,629,782
(11,432,454)
(10,276,748)
(136,166)
179,907
(11,568,620)
(10,096,841)
58,921
35,762
7,358,251
1,387,387
2,937,430
7,021,630
1,367,064
2,675,744
641,764
673,435
7,358,251
1,387,387
3,579,194
7,021,630
1,367,064
3,349,179
-
-
11,683,068
11,064,438
641,764
673,435
12,324,832
11,737,873
-
-
250,614
787,690
505,598
853,342
756,212
1,641,032
58,921
35,762
8,489,209
$
Business-type Activities - Enterprise Funds
Other Enterprise Fund Pioneer Adult Rehab Center
2008
2007
8,739,823
7,701,519
$
8,489,209
6,020,998
$
6,526,596
5,167,656
$
6,020,998
14,510,207
$
15,266,419
12,869,175
$
The notes to basic financial statements are an integral part of these statements.
- 31 -
14,510,207
117,527
$
176,448
81,765
$
117,527
DAVIS SCHOOL DISTRICT
Statements of Fund Cash Flows
Proprietary Funds
Year Ended June 30, 2008 with comparative totals for 2007
Major Enterprise Fund School Food Services
2008
2007
Cash flows from operating activities:
Receipts from interfund services provided
Receipts from customers
Payments to suppliers
Payments to employees
$
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities:
Receipt of federal subsidies
Receipt of state subsidies
Net cash provided by noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
9,240,126
(11,278,186)
(8,230,481)
Total adjustments
$
7,672,195
(1,692,473)
(5,936,798)
$
7,967,499
(1,743,442)
(5,809,021)
$
Totals
2008
16,912,321
(12,970,659)
(14,167,279)
2007
$
16,615,229
(12,658,517)
(13,110,284)
$
1,488,750
(190,540)
(1,159,391)
$
42,924
415,036
(10,225,617)
(9,153,572)
7,358,251
2,937,430
7,021,630
2,675,744
641,764
673,435
7,358,251
3,579,194
7,021,630
3,349,179
-
-
10,295,681
9,697,374
641,764
673,435
10,937,445
10,370,809
-
-
(128,706)
(960)
1,590
$
630
$ (11,432,454)
$
(77,615)
1,248
54,257
(269)
5,486
(629,844)
1,163,913
Net cash provided (used) by operating activities
$ (10,268,541)
Noncash investing, capital, and financing activities
Contributed food commodities
none
(123,716)
(128,706)
(138,819)
(191,433)
589,072
1,088,471
588,112
1,088,531
-
-
1,530
1,954,604
866,133
1,956,194
867,663
-
-
1,590
$
$
2,543,676
(136,166)
394,519
1,367,064
151,950
-
86,135
(1,248)
(9,034)
(67,239)
(4,725)
(1,057,332)
86,308
27,748
(86,916)
-
708,140
$
-
191,433
60
$ (10,276,748)
423,263
1,387,387
(95,616)
138,819
1,687,623
(190,621)
(1,305,569)
(9,568,608)
(28,100)
Cash and cash equivalents - beginning
Reconciliation of operating income (loss) to net cash provided
by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation expense
Donated food commodities
Changes in operating assets and liabilities:
Accounts receivable
Due from other funds
Inventories
Accounts payable
Compensation liability
Due to other funds
8,647,730
(10,915,075)
(7,301,263)
Governmental Activities Internal Service Fund
District Warehouse
2008
2007
(10,268,541)
Net increase in cash and cash equivalents
Cash and cash equivalents - ending (displayed as cash
and investments on the statements of fund net assets)
$
Business-type Activities - Enterprise Funds
Other Enterprise Fund Pioneer Adult Rehab Center
2008
2007
(9,568,608)
none
$
1,954,604
$
179,907
147,274
(932)
(9,961)
98,748
-
179,090
$
42,924
none
235,129
$
415,036
none
$
2,544,306
$ (11,568,620)
8,693
1,248
54,257
27,479
(81,430)
(629,844)
1,343,003
$ (10,225,617)
none
1,956,194
$ (10,096,841)
575,213
1,387,387
The notes to basic financial statements are an integral part of these statements.
- 32 -
$
$
-
$
-
$
58,921
$
35,762
541,793
1,367,064
119,822
-
85,203
(1,248)
(9,034)
(77,200)
94,023
(1,057,332)
(50,681)
405,984
(116,773)
244,389
1,777
(524,620)
943,269
$
(9,153,572)
none
91,303
28,814
1,281,192
93,466
(53,205)
2,028
(1,287,927)
79,898
$
138,819
none
155,671
$
191,433
none
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Davis School District (District) have been prepared in conformity with
accounting principles generally accepted in the United States of America (GAAP) as applied to local
government units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The more
significant accounting policies of the District are described below.
Reporting entity – The Board of Education, comprised of seven elected individuals, is the primary
governing authority for the District. As required by GAAP, these financial statements present the District
and its component unit, Davis School District Foundation, a legally separate organization for which the
District is considered to be financially accountable. Due to the relationship between the District and the
Foundation, it would be misleading to exclude the financial information of the Foundation from this report.
The Foundation exclusively services the District. The District makes all personnel decisions for the
Foundation and pays for all operating costs of the Foundation. The Foundation is reported as a separate
column in the District’s government-wide financial statements as a discretely presented component unit; the
Foundation is reported as a governmental fund type. Complete financial statements for the Foundation may
be obtained at the District’s administrative office.
Government-wide and fund financial statements – The government-wide financial statements (the
statement of net assets and the statement of changes in net assets) display information about the primary
government (the District) and its component unit. These statements include the financial activities of the
overall government. As a general rule, the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions occur only when the elimination of such activity would
distort the expenses and revenues reported by function. These statements distinguish between the
governmental and business-type activities of the District. Governmental activities generally are financed
through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities
are financed in whole or in part by fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each
function of the District’s governmental activities. Direct expenses are those that are specifically associated
with a function and, therefore, are clearly identifiable to a particular function. Depreciation expense for
capital assets that can specifically be identified with a function are included in its direct expenses.
Depreciation expense for “shared” capital assets (for example, a school building is used primarily for
instruction, school administration, and operation and maintenance of facilities) are ratably included in the
direct expenses of the appropriate functions. Indirect expense allocations that have been made in the funds
have been reversed for the statement of activities. Interest on general long-term liabilities is considered an
indirect expense and is reported in the statement of activities as a separate line. Program revenues include
1) fees and charges paid by students and other recipients of goods or services offered by a given function,
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function. Revenues that are not classified as program revenues, including property taxes, are
presented as general revenues.
The fund financial statements provide information about the District’s funds. Separate statements for each
fund category (governmental and proprietary) are presented. The emphasis of fund financial statements is
on major governmental funds, each displayed in a separate column. The remaining governmental fund is
reported as a nonmajor fund.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
- 33 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or ancillary activities. Operating expenses result from
transactions directly associated with the fund’s principal services.
The District reports the following major governmental funds:
•
The General Fund is the District’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
•
The Debt Service Fund accounts for resources accumulated and payments made for principal and
interest on general obligation school building bonds.
•
The Capital Projects Fund account for resources accumulated and payments made for the acquisition
and improvement of sites, construction and remodel of facilities, and procurement of equipment
necessary for providing educational programs for all students within the District.
The District reports the School Food Services Fund which accounts for revenues, subsidies and expenses
related to supplying meals to students and faculty as a major enterprise fund.
Additionally, the District reports the District Warehouse Internal Service Fund (a proprietary fund) which
accounts for warehouse services provided to other funds of the District on a cost-reimbursement basis.
The Student Activities Fund was reclassified from a fiduciary fund to a special revenue fund as of July 1,
2007. As a result of this change, the beginning net asset balance was increased by $6,892,772.
Measurement focus, basis of accounting, and financial statement presentation – The government-wide
and proprietary fund financial statements are reported using the economic resources measurement focus.
The government-wide and proprietary fund financial statements are reported using the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are
incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the
District receives value without directly giving equal value in exchange, include property taxes, grants, and
donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which taxes
are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The District considers all revenues reported in the governmental funds to be
available if the revenues are collected within sixty days after year-end. Property taxes and interest are
considered to be susceptible to accrual. All other revenue items are considered to be measurable and
available only when the District receives cash. Expenditures generally are recorded when the related fund
liability is incurred, except for principal and interest on general long-term debt, claims and judgments, early
retirement, and compensated absences, which are recognized as expenditures to the extent they have
matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds
of general long-term debt and acquisitions under capital leases are reported as other financing sources.
Under the terms of grant agreements, the District funds certain programs by a combination of specific costreimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are
incurred, there are both restricted and unrestricted net assets available to finance the program. It is the
- 34 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
District’s policy to first apply cost-reimbursement grant resources to such programs, followed by
categorical block grants, and then by general revenues.
All governmental and business-type activities and enterprise funds of the District follow FASB Statements
and Interpretations issued on or before November 30, 1989, Accounting Principles Board Opinions, and
Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements.
Budgetary Data – The District operates within the budget requirements for school districts as specified by
State Law and as interpreted by the Utah State Superintendent of Public Instruction. Budgets are presented
on the modified accrual basis of accounting for all governmental funds. All annual appropriations lapse at
fiscal year-end with the exception of those indicated as a fund balance reserve. The following procedures
are used in establishing the budgetary data reflected in the financial statements.
•
By June 1 of each year, the District business administrator prepares a proposed annual budget (for the
fiscal year beginning July 1) for all applicable funds. The budget is presented to the Board of
Education by the superintendent. This budget includes proposed expenditures and the means of
financing them. Also included is a final budget for the current fiscal year ending June 30th.
•
Copies of the proposed budget are made available for public inspection and review by the District's
patrons.
•
If the District does not exceed the certified tax rate, a public hearing is held prior to June 22 at which
time the budget is legally adopted by resolution of the Board after obtaining taxpayer input. If the
District exceeds the certified tax rate, the budget is adopted in August when data is available to set the
rates.
•
Once adopted, the budget can be amended by subsequent Board action. The Board upon
recommendation of the superintendent can approve reductions in appropriations, but increases in
appropriations by fund require a public hearing prior to amending the budget. In accordance with
Utah state law, interim adjustments may be made by administrative transfer of money from one
appropriation to another within any given fund.
•
Certain interim adjustments in estimated revenue and expenditures during the year ended June 30,
2008, have been included in the final budget approved by the Board, as presented in the financial
statements.
•
Expenditures may not legally exceed budgeted appropriations at the fund level.
Deposits and Investments – The cash balances of substantially all funds are pooled and invested by the
District for the purpose of increasing earnings through investment activities and providing efficient
management of temporary investments. Investments for the District, as well as for its component unit, are
reported at fair value. Changes in the fair value of investments are recorded as investment earnings.
Earnings on pooled funds are apportioned and paid or credited to the funds based on the average balance of
each participating fund.
The Utah Public Treasurers’ Investment Fund (PTIF) operates in accordance with appropriate state laws
and regulations. The reported value of the PTIF is approximately the same as the fair value of the PTIF
shares.
- 35 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
Cash and Cash Equivalents – The District considers cash and cash equivalents in proprietary funds to be
cash on hand, demand deposits, and short-term investments with original maturities of three months or less
from the date of acquisition, including investments in the PTIF.
Receivables and Payables – Activity between funds that are representative of lending/borrowing
arrangements outstanding at year-end are referred to as either “due to/from other funds” (i.e., current
portion of interfund loans). Any residual balances outstanding between governmental activities and
business-type activities are reported in the government-wide financial statements as “internal balances.”
Inventories – Inventories are valued at cost or, if donated, at fair value when received, stated at the lower
of average cost or market. Inventories of governmental funds are recorded as expenditures when consumed
rather than when purchased. Donated food commodities are reported in the School Food Services Fund as
revenue when received.
Capital Assets – Capital assets, which include land, buildings and improvements, furniture and equipment,
and transportation equipment are reported in the government-wide financial statements and proprietary fund
financial statements. The District defines capital assets as assets with an initial, individual cost of more
than $5,000 for land, furniture and equipment, and transportation equipment and $100,000 for buildings and
improvements and an estimated useful life in excess of two years. Purchased or constructed capital assets
are reported at cost or estimated historical cost. Donated capital assets are recorded at estimated fair value
at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset
or materially extend the assets’ lives are not capitalized. Major outlays for capital assets and improvements
are capitalized as projects are constructed. Interest incurred during construction is not capitalized.
Buildings and improvements and furniture and equipment of the District are depreciated using the straightline method over the following estimated useful lives:
Assets
Buildings
Building improvements and portable classrooms
Kitchen equipment appliances
Maintenance and applied technology equipment
School buses
Furniture and office equipment
Heavy trucks
Audio visual equipment
Light trucks
Copiers and printers
Other equipment and accessories
Passenger vehicles
Computer equipment and software
Years
40
20
15
15
10
10
7
6
6
5
5
5
3
Compensated Absences – Under terms of association agreements, twelve-month or full-year employees
earn vacation and sick leave in amounts varying with tenure and classification. Nine-month full-time
employees earn sick leave and personal leave in amounts varying with tenure and classification. In the
event of termination or death, an employee is reimbursed for the current value of accumulated vacation days
to a maximum of 30 days, and is reimbursed for unused personal leave days at an appropriate substitute
rate. Upon retirement, employees are compensated for accumulated sick leave at 21.5% of the current
- 36 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
value. All vacation pay, personal leave pay, and an estimated potential amount for sick leave pay, are
accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in the governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. Compensated absences will be paid by the fund in which the
employee worked.
Long-term Obligations – In the government-wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable statement of net assets. Bond premiums and
discounts, as well as issuance and refunding costs, are deferred and amortized over the life of the bonds
using the straight-line method, which approximates the effective interest method. Bonds payable are
reported net of unamortized bond premiums or discounts and refunding costs.
In the fund financial statements, governmental fund types recognize bond premiums and discounts and
refunding costs, 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 expenditures.
Fund Equity – In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use for a
restricted purpose. Designations of fund balance represent tentative plans for future use of financial
resources that are subject to change.
Comparative Data – Comparative data for the prior year has been presented in certain sections of the
accompanying basic financial statements in order to provide an understanding of changes in the District's
financial position and operations.
2.
DEPOSITS AND INVESTMENTS
Deposits and investments are carried at fair value. A reconciliation of cash and investments at June 30,
2008, as shown on the financial statements is as follows:
Carrying amount of deposits
Carrying amount of investments
$ 33,416,255
112,946,681
Total cash and investments
$ 146,362,936
Governmental funds cash and investments
Enterprise funds cash and investments
Primary government
Component unit cash and investments
Total cash and investments
$ 142,975,081
2,544,306
145,519,387
843,549
$ 146,362,936
The District complies with the State Money Management Act (Utah Code Section 51, Chapter 7) (Act) and
related Rules of the Money Management Council (Council) in handling its depository and investing
transactions. District funds are deposited in qualified depositories as defined by the Act. The Act also
authorizes the District to invest in the Utah Public Treasurers’ Investment Fund (PTIF), certificates of
deposit, US Treasury obligations, US agency issues, high-grade commercial paper, banker’s acceptances,
- 37 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
repurchase agreements, corporate bonds, money market mutual funds, and obligations of governmental
entities within the State of Utah.
The PTIF is authorized and makes investments in accordance with the Act. The Council provides
regulatory oversight for the PTIF. Participant accounts with the PTIF are not insured or otherwise
guaranteed by the State of Utah. Participants in the PTIF share proportionally in the income, costs, gains
and losses from investment activities. The degree of risk of the PTIF depends upon the underlying
portfolio.
The Act and Council rules govern the financial reporting requirements of qualified depositories in which
public funds may be deposited and prescribe the conditions under which the designation of a depository
shall remain in effect. The District considers the actions of the Council to be necessary and sufficient for
adequate protection of its uninsured bank deposits.
Rules of the Council allow Davis School District Foundation to invest private grants, contributions, and
endowments in any deposit or investment authorized by the Act and certain investment funds, equity
securities, fixed-income securities, and investment strategies with institutions that meet certain restrictions.
All of the District’s investments are with the PTIF. The Foundation has deposits separate from the District
and invests private funds through a broker.
Deposits – At June 30, 2008, the District and the Foundation have the following deposits with financial
institutions:
Davis County School District
Davis School District Foundation
Total deposits
•
Carrying
Amount
Bank
Balance
Amount
Insured
$ 32,836,375
579,880
$ 34,084,499
579,880
$ 100,000
100,000
$ 33,416,255
$ 34,664,379
$ 200,000
Custodial credit risk – Custodial credit risk for deposits is the risk that, in the event of a bank failure,
a government’s deposits may not be returned to it. The District does not have a formal deposit policy
for custodial credit risk. At June 30, 2008, the uninsured amount of the District’s and Foundation’s
bank deposits was uncollateralized.
Investments – At June 30, 2008, the District has $112,683,012 invested in the Utah Public Treasurers’
Investment Fund; the PTIF’s credit rating is not rated. The Davis School District Foundation has $163,670
invested in bond mutual funds which are also unrated. The District and the Foundation have the following
investments summarized by investment type and maturities:
- 38 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
Investment Maturities (in Years)
Investment Type
Davis County School District:
Utah Public Treasurers'
Investment Fund (PTIF)
Davis School District Foundation, a
component unit of the District:
Mutual funds investing in:
Corporate bonds
Other investments
Total Foundation
Total investments
Fair
Value
Less
Than 1
$ 112,683,011
$ 112,683,011
163,670
100,000
163,670
100,000
-
-
-
263,670
263,670
-
-
-
$ 112,946,681
$ 112,946,681
1-5
$
$
More
Than 10
5-10
-
-
$
$
-
-
$
$
-
-
•
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. The District manages its exposure to interest rate risk by complying with
the Act, which requires that the remaining term to maturity of investments to not exceed the period of
availability of the funds invested. Except for endowments, the Act further limits the remaining term
to maturity on all investments in commercial paper and bankers’ acceptances to 270 days or less and
fixed-income securities to 365 days or less. In addition, variable-rate securities may not have a
remaining term to final maturity exceeding two years. The Foundation can invest private funds in
fixed-income securities with a dollar-weighted average maturity not to exceed ten years. The District
has no investment policy that would further limit its interest rate risk.
•
Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The District’s policy for reducing its exposure to credit risk is to comply with
the Act and related rules. The Act and related rules limit investments in commercial paper to a first
tier rating and investments in fixed-income and variable-rate securities to a rating of A or higher as
rated by Moody’s Investors Service, Inc. or by Standard and Poor’s Corporation. The District has no
investment policy that would further limit its investment choices.
•
Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the
magnitude of a government’s investment in a single issuer. The District’s policy for managing this
risk is to comply with the Act and related rules. The Act limits investments in commercial paper and
or corporate obligations to 5% of the District’s total portfolio with a single issuer. The District places
no other limits on the amount it may invest in any one issuer. The Foundation can invest private
funds in certain equity and fixed-income securities provided no more than 5% of all funds are
invested in any one issuer and no more than 25% of all funds are invested in a particular industry.
Also, for the Foundation’s investments in private funds, no more than 75% may be invested in equity
securities and no more than 5% in collateralized mortgage obligations.
- 39 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
•
3.
Custodial Credit Risk – Custodial credit risk for investments is the risk that, in the event of the failure
of the counterparty, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The District’s policy for managing this risk is
to comply with the Act and related rules. The District places no other limit on the amount of
investments to be held by counterparties. The Act requires the Foundation’s public treasurer to have
custody of all securities purchased or held or deposit these securities with a bank or trust company to
be held in safekeeping by that custodian. The Foundation’s investments held in a brokerage account
are covered by Securities Investor Protection Corporation up to $500,000.
PROPERTY TAXES
The property tax revenue of the District is collected and distributed by the Davis County treasurer as an
agent of the District. Utah statutes establish the process by which taxes are levied and collected. The
county assessor is required to assess real property as of January 1 (the legal lien date) and complete the tax
rolls by May 15. By July 21, the county auditor is to mail assessed value and tax notices to property
owners. A taxpayer may then petition the County Board of Equalization between August 1 and August 15
for a revision of the assessed value. The county auditor makes approved changes in assessed value by
November 1 and on this same date the county auditor is to deliver the completed assessment rolls to the
county treasurer. Tax notices are mailed with a due date of November 30.
Beginning January 1, 1992, an annual uniform fee based on the value of motor vehicles was levied in lieu of
an ad valorem tax on motor vehicles. This uniform fee was 1.5% of the fair market statewide value of the
property, as established by the State Tax Commission. Effective January 1, 1999, legislation required
motor vehicles be subject to an “age-based” fee that is due each time a vehicle is registered. The revenues
collected in each county from motor vehicle fees is distributed by the county to each taxing entity in which
the property is located in the same proportion in which revenue collected from ad valorem real property tax
is distributed. The District recognizes motor vehicle fees as property tax revenue when collected.
As of June 30, 2008, property taxes receivable by the District includes uncollected taxes assessed as of
January 1, 2008 or earlier. It is expected that all assessed taxes (including delinquencies plus accrued
interest and penalties) will be collected within a five-year period, after which time the county treasurer may
force sale of property to collect the delinquent portion. The property taxes receivable and property taxes
deferred revenue accounts in the governmental funds at June 30, 2008 are summarized as follows:
Debt
Service
General
Property taxes - receivable:
Levied for current and prior years collected during July and August 2008
Levied for current and prior years (delinquent)
Levied for future year
Property taxes - deferred revenue:
Levied for future year
Levied for current and prior years (delinquent)
Deferred property tax revenue - governmental
funds, balance sheet
Capital
Projects
Total
$
2,010,851
1,550,619
53,804,767
$ 57,366,237
$
1,344,926
1,037,124
39,377,187
$ 41,759,237
$
398,090
306,986
10,414,814
$ 11,119,890
3,753,867
2,894,729
103,596,768
$ 110,245,364
$ 53,804,767
1,550,619
$ 39,377,187
1,037,124
$ 10,414,814
306,986
$ 103,596,768
2,894,729
$ 55,355,386
$ 40,414,311
$ 10,721,800
$ 106,491,497
- 40 -
$
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
4.
CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2008 is as follows:
Beginning
Balance
Governmental activities:
Capital assets, not being depreciated
Land
Construction in progress
$ 31,080,073
80,562,200
Total capital assets, not being depreciated
Increases
$
4,230,842
38,770,866
Ending
Balance
Decreases
$
(1,149,036)
(86,563,357)
$ 34,161,879
32,769,709
111,642,273
43,001,708
(87,712,393)
66,931,588
496,373,871
8,910,254
22,904,379
86,563,357
1,326,949
2,150,991
(34,710)
(328,583)
(645,300)
582,902,518
9,908,620
24,410,070
528,188,504
90,041,297
(1,008,593)
617,221,208
208,615,774
5,717,475
15,864,031
13,311,513
834,645
1,538,026
(34,710)
(328,583)
(645,300)
221,892,577
6,223,537
16,756,757
Total accumulated depreciation
230,197,280
15,684,184
(1,008,593)
244,872,871
Total capital assets, being depreciated, net
297,991,224
74,357,113
Governmental activity capital assets, net
$ 409,633,497
$ 117,358,821
$ (87,712,393)
$ 439,279,925
Business-type activities:
Capital assets, being depreciated:
Buildings and improvements
Furniture and equipment
$ 10,641,717
4,503,749
$
$
(42,000)
$ 10,641,717
4,587,240
Capital assets, being depreciated:
Buildings and improvements
Furniture and equipment
Transportation equipment
Total capital assets, being depreciated
Accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Transportation equipment
Total capital assets, being depreciated
Accumulated depreciation for:
Buildings and improvements
Furniture and equipment
Total accumulated depreciation
Business-type activity capital assets, net
$
125,491
-
372,348,337
15,145,466
125,491
(42,000)
15,228,957
2,314,473
2,958,322
270,402
304,811
(40,225)
2,584,875
3,222,908
5,272,795
575,213
(40,225)
5,807,783
9,872,671
- 41 -
$
(449,722)
$
(1,775)
$
9,421,174
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
For the year ended June 30, 2008, depreciation expense was charged to functions of the District as follows:
Governmental activities:
Instruction
Supporting services:
Students
Instructional staff
District administration
School administration
Business administration
Operation and maintenance of facilities
Student transportation
Capital assets held by the District's internal service fund
are charged to the various functions based on their usage
of the assets
$ 11,959,214
123,372
104,351
18,774
646,729
1,252,866
1,179,760
279,296
119,822
Total depreciation expense, governmental activities
$ 15,684,184
Business-type activities:
School Food Services
Pioneer Adult Rehabilitation Center
Total depreciation expense, business-type activities
$
423,262
151,951
$
575,213
The District is obligated at June 30, 2008, under construction commitments as follows:
Project
Authorized
Project
Elem #57 Buffalo Point
Elem #58
New Jr High #15
Additions and renovations at
various locations
Total
$
13,503,451
14,781,036
30,799,572
Costs to
Date
$
37,160,245
$
96,244,304
9,815,484
14,875
5,538,460
Costs to
Complete
$
17,400,890
$
32,769,709
3,687,967
14,766,161
25,261,112
19,759,355
$
63,474,595
A reservation of the fund balances of the Capital Projects Fund is set aside to finance the costs to complete
these projects.
5.
RETIREMENT PLANS
Defined Benefit Plans – The District contributes to the State and School Contributory Retirement System
and State and the School Noncontributory Retirement System (collectively, the Systems) which are costsharing multiple-employer defined benefit pension plans administered by the Utah Retirement Systems
(URS). URS provides refunds, retirement benefits, annual cost of living adjustments and death benefits to
plan members and beneficiaries in accordance with retirement statutes.
The Systems are established and governed by the respective sections of Chapter 49 of the Utah Code
Annotated 1953, as amended. The Utah State Retirement Act in Chapter 49 provides for the administration
of the URS and plans under the direction of the Utah State Retirement Board whose members are appointed
by the Governor. The Systems issue a publicly available financial report that includes financial statements
and required supplementary information for the Systems. A copy of the report may be obtained by writing
- 42 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
to the Utah Retirement Systems, 540 East 200 South, Salt Lake City, UT 84102 or by calling 1-800-3658772.
Plan members in the State and School Contributory Retirement System are required to contribute 1.00% of
annual covered salary, and the District contributes 14.73% of annual covered salary. For employees
participating in the State and School Noncontributory System, the District contributes 14.22% of annual
covered salary. The contribution rates are the actuarially determined rates. The contribution requirements
of the Systems are authorized by statute and specified by the Utah State Retirement Board.
The District’s contributions to the State and School Contributory Retirement System for the years ended
June 30, 2008, 2007, and 2006 are $400,419, $374,834, and $350,355, respectively, and employee
contributions were $27,184, $25,447, and $25,224, respectively. The District’s contributions to the State
and School Noncontributory Retirement System for the years ended June 30, 2008, 2007, and 2006 are
$31,233,964, $25,228,033, and $22,114,627, respectively. The contributions were equal to the required
contributions for each year.
Defined Contribution Plans – The District also participates in a defined contribution plan under Internal
Revenue Code Section 401(k) to supplement retirement benefits accrued by participants in the Systems.
Employees covered by the State and School Noncontributory Retirement System have a contribution of
1.5% of covered salaries automatically made by the District. Employees participating in the Systems can
make additional contributions to the 401(k) plan up to specified limits. Contributions and earnings may be
withdrawn by the employee upon termination or may be used as supplemental income upon retirement. The
employer 401(k) contributions for the years ended June 30, 2008, 2007, and 2006 are $3,958,753,
$3,140,291, and $2,777,978, respectively; the employee contributions for the years ending June 30, 2008,
2007, and 2006 are $4,129,344, $3,546,065, and $3,426,509, respectively. The 401(k) plan funds are fully
vested to the participants at the time of deposit. Plan assets are administered and held by URS and the URS
has the authority to establish or amend contribution requirements and other plan provisions.
The District also offers its employees a deferred compensation plan created in accordance with Internal
Revenue Service Code Section 457. The plan, available to all full-time employees, permits them to defer a
portion of their salary until future years. Employees are eligible to voluntarily participate from the date of
employment and are vested immediately upon participating. Employee contributions to the Section 457
plan totaled $480,263, $419,528, and $457,541, for the years ended June 30, 2008, 2007, and 2006,
respectively. The assets of the plan are administered and held by URS and the URS has the authority to
establish or amend the plan.
Early Retirement Incentive – The District provides an early retirement incentive program. Eligibility is
restricted to those employees with a minimum of ten years of service in the District, and who meet the
eligibility requirements for and will be receiving Utah State Retirement System benefits. Eligible retirees
will receive a contribution of 16% of their annual salary per year, for up to three consecutive years, into a
qualified 401(a) and/or 403(b) plan, or until they become eligible to receive unreduced social security
benefits, whichever occurs first. Employees who retire under the incentive program will continue to be
enrolled in group medical and dental programs until they become eligible for Medicare, or for 10
consecutive years following retirement, whichever comes first. Enrollment is contingent upon the retiree
contributing the same premium as required of active employees for the first 3 years and the full premium
for the following 7 years. The District's direct payments to retirees in the years ended June 30, 2008 and
2007 are $2,469,506 and $1,945,622, respectively. Future retirement payments of employees who have
elected early retirement are recognized on an accrual basis as an expense in the government-wide
statements in the year of retirement. This liability is paid from the fund from which the employee retires.
- 43 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
6.
RISK MANAGEMENT
The District also maintains insurance coverage for general, automobile, personal injury, errors and
omissions, employee dishonesty, and malpractice liability up to $10 million per occurrence through policies
administered by the Utah State Risk Management Fund (Fund). The District also insures its buildings,
including those under construction, and contents against all insurable risks of direct physical loss or damage
with the Fund. Property physical damage is insured to replacement value with a $1,000 deductible;
automobile physical damage is insured to actual value with a $350 deductible; other liability is limited to
the lesser of $10 million or the statutory limit. The Fund is a public entity risk pool operated by the State
for the benefit of the State and local governments within the State. The District pays annual premiums to
the Fund; the Fund obtains independent coverage for insured events, up to $25 million per location. This is
a pooled arrangement where the participants’ pay experience rated annual premiums, which are designed to
pay claims and build sufficient reserves so that the pool will be able to protect the participating entities with
its own capital. The pool reinsures excess losses to preserve the capital base. Insurance coverage by major
category of risk has remained relatively constant as compared to the prior fiscal year. Insurance settlements
have not exceeded insurance coverage for the past three years.
Unemployment compensation is handled on a cost of benefits reimbursement basis with the State of Utah.
The District is self-insured for worker’s compensation claims up to $250,000 per incident. Worker’s
compensation claims are processed by a third party administrator. The District has not established a reserve
for either claims outstanding or for claims incurred but not reported (IBNR) because management believes
the amount to be immaterial to the financial statements. During the year ended June 30, 2007, the District
paid claims in the amount of $524,908. A co-insurance policy will provide for individual claims in excess
of $250,000.
- 44 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
7.
LONG-TERM DEBT
Long-term liability activity for the year ended June 30, 2008 is as follows:
Beginning
Balance
Governmental activities:
Bonds payable:
General obligation bonds
Deferred amounts for issuance
premium
Deferred amounts on refunding
$
Obligations under capital leases
Accrued vacation
Accrued sick leave
Accrued personal leave
Early retirement payable
Business-type activities:
Accrued vacation
Accrued sick leave
Accrued personal leave
Total business-type activity
long-term liabilities
$
6,122,926
(1,002,635)
Total bonds payable, net
Total governmental activity
long-term liabilities
247,485,000
Additions
119,000,000
Ending
Balance
Reductions
$
(23,605,000)
$ 342,880,000
Due Within
One Year
$
27,380,000
2,364,047
-
(633,202)
134,438
7,853,771
(868,197)
-
252,605,291
121,364,047
(24,103,764)
349,865,574
27,380,000
7,663,350
3,368,832
1,617,185
1,079,914
5,082,385
2,617,600
2,600,831
209,266
589,176
2,442,739
(2,659,814)
(2,468,773)
(202,763)
(567,732)
(2,469,506)
7,621,136
3,500,890
1,623,688
1,101,358
5,055,618
2,131,837
2,565,549
203,578
579,006
840,894
$ 368,768,264
$
33,700,864
$
271,416,957
$
129,823,659
$
(32,472,352)
$
136,561
53,830
28,399
$
113,408
6,592
30,941
$
(175,456)
(25,541)
(31,373)
$
74,513
34,881
27,967
$
23,556
9,807
6,897
$
218,790
$
150,941
$
(232,370)
$
137,361
$
40,260
General Obligation Bonds – The District issues general obligation bonds to provide funds for the
construction of new facilities, acquisition of property, renovation and improvement of facilities, and
procurement of other equipment. General obligation bonds are direct obligations and pledge the full faith
and credit of the District. Payments on the general obligation bonds are made by the Debt Service Fund
from property taxes.
The annual requirements to amortize all general obligation bonds outstanding as of June 30, 2008, including
interest payments are listed as follows:
- 45 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
Year Ending
June 30,
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2028
Total
Principal
$
27,380,000
24,300,000
25,180,000
26,400,000
26,940,000
128,995,000
62,155,000
21,530,000
$ 342,880,000
Interest
$
15,242,303
13,960,264
12,949,196
11,806,427
10,599,707
36,024,301
54,577,371
3,231,219
$ 158,390,787
Total
$
42,622,303
38,260,264
38,129,196
38,206,427
37,539,707
165,019,301
116,732,371
24,761,219
$ 501,270,787
The general obligation bonded debt of the District is limited by state law to 4% of the fair market value of
the total taxable property in Davis County. The legal debt limit at June 30, 2008 is $951,175,527, with
general obligation debt outstanding, net of deferred amounts for issuance premiums and on refundings, of
$349,865,574, resulting in a legal debt margin of $601,309,953.
General obligation school building bonds payable at June 30, 2008, with their outstanding balance are
comprised of the following individual issues:
Bond Series 1999 - GO Refunding Bonds - original issue of
$40,525,000 with interest rates ranging from 4.0% to 4.5%
Bond Series 2001 - GO Bonds - original issue of $10,000,000
with interest rates ranging from 3.5% to 5.0%
Bond Series 2002A - GO Refunding Bonds - original issue of
$27,240,000 with interest rates ranging from 3.25% to 5.5%
Bond Series 2002B - GO Bonds - original issue of $42,000,000
with interest rates ranging from 4.0% to 5.15%
Bond Series 2003 - GO Bonds - original issue of $38,930,000
with interest rates ranging from 2.0% to 5.0%
Bond Series 2003B - GO Bonds - original issue of $55,000,000
with interest rates ranging from 2.0% to 4.5%
Bond Series 2005A- GO Bonds - original issue of $52,200,000
with interest rates ranging from 3.0% to 5.0%
Bond Series 2005B - GO Refunding Bonds - original issue of
$24,905,000 with interest rates ranging from 3.5% to 5.0%
Bond Series 2006 - GO Bonds - original issue of $47,000,000
with interest rates ranging from 4.0% to 5.0%
Bond Series 2007 - GO Bonds - original issue of $55,000,000
with interest rates ranging from 4.0% to 5.0%
Bond Series 2008 - GO Bonds - original issue of $64,000,000
with interest rates ranging from 4.0% to 5.0%
$
9,160,000
2,420,000
15,595,000
17,600,000
26,905,000
41,975,000
44,870,000
21,605,000
44,600,000
54,150,000
64,000,000
$ 342,880,000
Defeased Bonds – In prior years, the District defeased certain general obligation bonds by placing the
proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old
- 46 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the
District’s financial statements. At June 30, 2008, $38,045,000 of bonds outstanding are considered
defeased.
Bond Issuance – On July 10, 2007 the District issued $55,000,000 of general obligation bonds. The bonds
were issued at an effective interest rate of 4.37% (annual rates range between 4.00% and 5.00%) and will
mature on June 1, 2022.
On May 7, 2008 the District issued $64,000,000 of general obligation bonds. The bonds were issued at an
effective interest rate of 4.24% (annual rates range between 4.00% and 5.00%) and will mature on June 1,
2028.
Capital Leases – During the years ended June 30, 2008, 2007, and 2006, the District purchased $2,617,600,
$3,064,491, and $1,455,276, respectively, of capital equipment through capital leasing arrangements in the
Capital Projects Fund. The capital equipment, consisting of computers and other instructional equipment,
telecommunication and maintenance equipment, is used throughout the District to enhance learning and the
learning environment. Lease payments for the years ended June 30, 2008 and 2007 totaled $3,017,019 and
$2,387,277, respectively.
At June 30, 2008, the District has $7,621,136 in outstanding capital leases.
Future minimum lease obligations as of June 30, 2008, are as follows:
Year Ending
June 30,
2009
2010
2011
2012
2013
2014-2018
General
Fund
$
Total minimum lease payments
Amount representing interest
$
668,199
(29,346)
Present value of minimum lease payments
8.
668,199
-
Capital
Projects Fund
$
638,853
2,155,923
1,496,925
1,565,081
1,600,181
311,425
408,816
Total
$
7,538,351
(556,068)
$
6,982,283
2,824,122
1,496,925
1,565,081
1,600,181
311,425
408,816
8,206,550
(585,414)
$
7,621,136
INTERFUND BALANCES AND ACTIVITY
The composition of interfund balances as of June 30, 2008 is as follows:
Receivable Fund
General
Internal Service - District Warehouse
Payable Fund
Internal Service - District Warehouse
Enterprise - School Food Services
Amount
$ 4,945,000
41,610
The amount payable to the general fund relates to working capital advances made to the internal service
fund. None of the balance is scheduled to be collected in the subsequent year. The amount payable to the
- 47 -
DAVIS SCHOOL DISTRICT
Notes to Basic Financial Statements
Continued
internal service fund results from the time lag between the date when amounts are billed and collected
between the funds. These amounts are expected to be collected in the subsequent year.
During the year, the Capital Projects Fund transferred $5,000,000 to the General Fund. This represents
taxes levied and collected under the ten percent of basic tax levy which by state law is allowed to be used
for capital projects, non general obligation debt service, purchase of buses, supplies, textbooks, and other
equipment.
9.
LITIGATION AND LEGAL COMPLIANCE
There are several lawsuits pending in which the District is involved. The District's counsel and insurance
carriers estimate that the potential claims against the District, not covered by insurance, resulting from such
litigation would not materially effect the financial statements of the District.
All fund balances are positive at June 30, 2008. Fund expenditures are within amounts budgeted for the
year.
10.
GRANTS
The District receives significant financial assistance from federal and state governmental agencies in the
form of grants. The disbursement of funds received under these programs generally requires compliance
with terms and conditions specified in the grant agreements and are subject to audit by the District's
independent auditors and other governmental auditors. Any disallowed claims resulting from such audits
could become a liability of the General Fund or other applicable fund.
The District is currently investigating potential losses within the federal Title I program. District
administration is working with various agencies in identifying the amounts of potential losses, resolving
questioned costs within the federal Title I program, and recovering identified losses. Accordingly, no
liability has been recognized in the financial statements at June 30, 2008 for the questioned costs.
- 48 -
Individual Fund Statements
And Schedules
Major Governmental Funds:
General Fund – The General Fund is used to account for all financial resources
applicable to the general operations of the District which are not required to be
accounted for in another fund. Utah law defines the General Fund as the
Maintenance and Operations Fund.
Debt Service Fund – The Debt Service Fund is used to account for the
accumulation of resources and payment of general obligation bond principal and
interest from governmental resources. Financing is provided by an annual
property tax levy for General Obligation Debt as authorized by Utah Code 11-14-19.
Capital Projects Fund – The Capital Projects Fund is used to account for the
resources used in acquiring and improving sites, constructing and remodeling
facilities, and procuring equipment for the education programs for all students
within the District. Financing is provided by an annual property tax levy not to
exceed .0024 and an additional levy to generate an amount not to exceed 10% of
the cost of the basic program as authorized by Utah Code 53 A-16-107 and
53 A-17a-145. Also, State funds can be obtained by qualifying under guidelines
established for districts determined to be in critical need for construction building
aid.
Nonmajor Governmental Funds:
Student Activity Fund - The Student Activity Fund is used to account for revenues
and expenditures from school-based operations. The revenues include interest
earnings, gate receipts, fundraisers, and student fees. Expenditures support
school curricular and extra-curricular activities.
State Multi-District Program Fund – The State Multi-District Program Fund is
used to account for resources provided by the State for operation of state-wide or
regional public education programs.
- 49 -
DAVIS SCHOOL DISTRICT
Comparative Balance Sheets
General Fund
June 30, 2008 and 2007
Assets:
Cash and investments
Receivables:
Property taxes
Other local
State of Utah
Federal government
Due from other funds
Inventories
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable
Notes payable
Accrued payroll and withholding
Deferred revenue - property taxes
Total liabilities
Fund balances:
Reserved for inventories
Unreserved:
Designated for workers compensation
Designated for termination benefits
Undesignated
Total fund balances
Total liabilities and fund balances
- 50 -
2008
2007
$ 49,088,547
$ 32,155,331
57,366,237
1,327,652
306,062
8,890,879
4,945,000
3,068,975
$ 124,993,352
52,663,237
1,307,255
230,585
7,650,317
5,711,348
1,619,498
$ 101,337,571
$
$
893,548
250,000
58,741,506
55,355,386
115,240,440
769,418
250,000
41,444,046
51,389,009
93,852,473
3,068,975
1,619,498
300,000
2,500,000
3,883,937
9,752,912
$ 124,993,352
300,000
1,500,000
4,065,600
7,485,098
$ 101,337,571
DAVIS SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
Year Ended June 30, 2008
With Comparative Totals for 2007
2008
Final
Budgeted
Amounts
Revenues:
Property taxes
Interest
Other local sources
State of Utah
Federal government
Total revenues
$
Expenditures:
Current:
Instruction
Supporting services:
Students
Instructional staff
District administration
School administration
Business administration
Operation and maintenance of facilities
Student transportation
Debt service - interest on tax anticipation notes
Total expenditures
Excess of expenditures over revenues
Other financing sources (uses):
Transfers
Net change in fund balances
Fund balance - beginning
Fund balance - ending
56,731,500
1,693,600
8,271,200
286,886,202
26,713,544
380,296,046
Actual
Amounts
$
$
1,036,898
552,625
(138,096)
(1,756,147)
(442,020)
(746,740)
Actual
Amounts
$
52,581,340
1,780,516
12,115,817
239,589,195
26,371,759
332,438,627
266,111,346
262,946,407
3,164,939
228,285,305
13,701,000
18 113 800
18,113,800
3,465,100
23,298,300
10,911,400
39,196,100
12,699,000
1,400,000
388,896,046
(8,600,000)
13,312,679
17 574 702
17,574,702
3,204,530
22,712,165
10,946,328
38,100,173
12,138,708
1,345,800
382,281,492
(2,732,186)
388,321
539 098
539,098
260,570
586,135
(34,928)
1,095,927
560,292
54,200
6,614,554
5,867,814
11,782,588
15 202 804
15,202,804
3,253,753
20,512,554
9,428,097
35,542,521
11,153,436
1,373,883
336,534,941
(4,096,314)
9,600,000
1,000,000
$
57,768,398
2,246,225
8,133,104
285,130,055
26,271,524
379,549,306
2007
Variance with
Final Budget Positive
(Negative)
7,485,098
8,485,098
- 51 -
5,000,000
2,267,814
$
7,485,098
9,752,912
(4,600,000)
1,267,814
$
1,267,814
5,500,000
1,403,686
$
6,081,412
7,485,098
Comparative Balance Sheets
Debt Service Fund
June 30, 2008 and 2007
2008
Assets:
Cash and investments
Receivables - property taxes
Total assets
$
Liabilities and fund balances:
Liabilities:
Accounts payable
Deferred revenue - property taxes
Total Liabilities
Fund balances:
Unreserved:
Total fund balances
Total liabilities and fund balances
1,485,056
41,759,237
$ 43,244,293
383
35,193,321
$ 35,193,704
$
$
40,414,311
40,414,311
2,829,982
2,829,982
$ 43,244,293
- 52 -
2007
$
32,657
34,356,957
34,389,614
804,090
804,090
$ 35,193,704
DAVIS SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Debt Service Fund
Year Ended June 30, 2008
With Comparative Totals for 2007
2008
Final
Budgeted
Amounts
Revenues:
Property taxes
$
37,943,900
Actual
Amounts
$
38,637,500
Expenditures:
Debt service:
Bond principal
Bond interest
Bond issuance costs
Other
23,605,000
12,968,400
821,200
23,605,000
12,968,323
Total expenditures
Excess of revenues over expenditures
Fund balance - beginning
Fund balance - ending
$
2007
Variance with
Final Budget Positive
(Negative)
$
693,600
Actual
Amounts
$
38,285
77
782,915
22,880,000
11,194,210
277,190
46,851
37,394,600
36,611,608
782,992
34,398,251
549,300
2,025,892
1,476,592
114,547
804,090
804,090
1,353,390
- 53 -
$
2,829,982
-
34,512,798
$
1,476,592
689,543
$
804,090
DAVIS SCHOOL DISTRICT
Comparative Balance Sheets
Capital Projects Fund
June 30, 2008 and 2007
Assets:
Cash and investments
Receivables:
Property taxes
Other local
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable
Deferred revenue - property taxes
Total Liabilities
Fund balances:
Unreserved:
Designated for capital projects
Total fund balances
Total liabilities and fund balances
- 54 -
2008
2007
$ 84,466,059
$ 12,723,819
11,119,890
12,269
$ 95,598,218
10,451,037
80,975
$ 23,255,831
$
3,762,231
10,721,800
14,484,031
$ 12,867,680
10,185,261
23,052,941
81,114,187
81,114,187
$ 95,598,218
202,890
202,890
$ 23,255,831
DAVIS SCHOOL DISTRICT
S h d l off R
E p dit
d Changes
Ch g in
i Fund
F d Balances
B l
B dg t and
d Actual
A t l
Schedule
Revenues, Expenditures
and
- Budget
Capital Projects Fund
Year Ended June 30, 2008
With Comparative
C
ti Totals
T t l for
f 2007
2008
Revenues:
Local sources:
Property
p y taxes
Earnings on investments
Other local revenue
re en e
Final
B d t d
Budgeted
Amounts
$
11,231,200
3 500 000
3,500,000
1,000,000
1 000 000
A t l
Actual
Amounts
$
11,436,460
3 016 129
3,016,129
825,847
825 847
2007
Variance with
Final Budget P iti
Positive
(Negative)
$
205,260
(483 871)
(483,871)
(174,153)
(174 153)
A t l
Actual
Amounts
$
10,967,311
3 485 156
3,485,156
1,012,341
1 012 341
Total local sources
State building
g aid
Other state grants
15,731,200
15
731 200
15,737,561
,
,
-
15,278,436
15
278 436
15,737,561
,
,
57,860
57 860
(452,764)
(452
764)
57,860
57 860
15,464,808
15
464 808
7,949,575
,
,
30,000
30 000
Total revenues
31 468 761
31,468,761
31 073 857
31,073,857
(394 904)
(394,904)
23 444 383
23,444,383
,
,
80,366,158
10 096 200
10,096,200
10 106 403
10,106,403
,
,
56,546,997
10 128 102
10,128,102
425 554
425,554
1 540 894
1,540,894
2 245 661
2,245,661
,
,
23,819,161
(31 902)
(31,902)
(425 554)
(425,554)
(1 540 894)
(1,540,894)
7 860 742
7,860,742
,
,
65,793,618
10 202 913
10,202,913
1 540 894
1,540,894
1 485 380
1,485,380
100,568,761
100 568 761
70,887,208
70 887 208
29,681,553
29 681 553
79,022,805
79 022 805
(69,100,000)
(69 100 000)
(39,813,351)
(39 813 351)
29,286,649
29 286 649
(55,578,422)
(55 578 422)
119 000 000
119,000,000
300 000
300,000
(9,600,000)
119 000 000
119,000,000
2,364,047
,
,
1 743 001
1,743,001
2 617 600
2,617,600
(5,000,000)
2,364,047
,
,
1 443 001
1,443,001
2 617 600
2,617,600
4,600,000
47 000 000
47,000,000
1,062,080
,
,
260 299
260,299
3 064 491
3,064,491
(5,500,000)
109,700,000
120,724,648
11,024,648
45,886,870
40,600,000
0,600,000
80,911,297
80,9
, 9
40,311,297
0,3 , 9
(9,691,552)
(9,69
,55 )
Expenditures:
E
pendit res
g and improvements
p
Buildings
Equipment
B d iissuance costs
Bond
t
Capital lease payments
Other capital outlay
Total expenditures
Excess of expenditures over revenues
Other Financing Sources (Uses):
General obligation bonds issued
General obligation
g
bonds premium
p
Sale of capital assets
C it l leases
Capital
l
Transfers
Total other financing sources (uses)
Net
e change
c a ge in fund
u d balances
ba a ces
Fund balance - beginning
g
g
Fund
balance
- ending
F db
l
di g
202,890
,
$
40,802,890
40 802 890
- 55 -
202,890
,
$
81,114,187
81 114 18
$
40,311,297
40 311 29
9,894,442
,
,
$
202,890
202 890
DAVIS SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
Year Ended June 30, 2008
Special Revenue
State
Student
Multi-District
Activities
Program
Fund
Fund
Assets:
Cash and investments
Receivables:
State of Utah
Federal government
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances:
Designated for student activities
Designated for state multi-district programs
Total fund balances
Total liabilities and fund balances
$
7,357,402
$
7,357,402
$
$
56
-
7,357,402
7,357,402
7,357,402
$
578,017
$
13,325
18,372
609,714
$
$
62,581
62,581
547,133
547,133
609,714
Total
Nonmajor
Governmental
Funds
$
7,935,419
$
13,325
18,372
7,967,116
$
$
62,581
62,581
7,357,402
547,133
7,904,535
7,967,116
DAVIS SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2008
Special Revenue
State
Student
Multi-District
Activities
Program
Fund
Fund
Revenues:
Local sources:
Earnings on investments
Student fees
Other local revenue
State sources
Federal sources
$
Total revenues
8,332
16,592,228
104,000
-
$
29,113
2,282,212
51,242
Total
Nonmajor
Governmental
Funds
$
8,332
16,592,228
133,113
2,282,212
51,242
16,704,560
2,362,567
19,067,127
Expenditures:
Salaries and benefits
Purchased services
Supplies and equipment
51,347
42,446
16,146,137
141,487
1,840,700
75,994
192,834
1,883,146
16,222,131
Total expenditures
16,239,930
2,058,181
18,298,111
464,630
304,386
769,016
6,892,772
242,747
7,135,519
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
7,357,402
57
$
547,133
$
7,904,535
DAVIS SCHOOL DISTRICT
Comparative Balance Sheets
Student Activities Fund
Nonmajor Special Revenue Fund
June 30, 2008 and 2007
2008
Assets:
Cash and investments
Total assets
$
$
Liabilities and fund balances:
Liabilities:
Accounts payable
Total liabilities
$
Fund balances - designated for student activities
Total fund balances
Total liabilities and fund balances
7,357,402
7,357,402
-
$
$
-
$
-
7,357,402
7,357,402
$
58
2007
7,357,402
$
-
DAVIS SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Student Activities Fund
Nonmajor Special Revenue Fund
Year Ended June 30, 2008
With Comparative Totals for 2007
2008
Final
Budgeted
Amounts
Revenues:
Earnings on investments
Student fees
Other local revenue
$
Total revenues
Actual
Amounts
10,000
18,246,000
104,000
$
8,332
16,592,228
104,000
2007
Variance with
Final Budget Positive
(Negative)
$
(1,668)
(1,653,772)
-
Actual
Amounts
$
-
18,360,000
16,704,560
(1,655,440)
-
Expenditures:
Salaries and benefits
Purchased services
Supplies and equipment
60,000
50,000
18,250,000
51,347
42,446
16,146,137
8,653
7,554
2,103,863
-
Total expenditures
18,360,000
16,239,930
2,120,070
-
464,630
464,630
-
Net change in fund balances
-
Fund balances - beginning
Fund balances - ending
6,892,772
$
6,892,772
6,892,772
$
7,357,402
$
464,630
$
Note: The District converted its Student Activities Fund from an agency fund to a special revenue fund effective July 1, 2007.
The June 30, 2007 obligation balance of the agency fund became the July 1, 2007 fund balance for the special revenue fund.
59
-
DAVIS SCHOOL DISTRICT
Comparative Balance Sheets
State Multi-District Program Fund
Nonmajor Special Revenue Fund
June 30, 2008 and 2007
2008
Assets:
Cash and investments
Receivables:
State of Utah
Federal government
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable
Due to other funds
Total liabilities
$
578,017
$
13,325
18,372
609,714
$
Fund balances:
Designated for state multi-district programs
Total fund balances
Total liabilities and fund balances
$
- 60 -
62,581
62,581
547,133
547,133
609,714
2007
$
$
$
$
108,447
192,876
301,323
39,460
19,116
58,576
242,747
242,747
301,323
DAVIS SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
State Multi-District Program Fund
Nonmajor Special Revenue Fund
Year Ended June 30, 2008
With Comparative Totals for 2007
2008
Final
Budgeted
Amounts
Revenues:
Local revenue
State grants
Federal grants
$
Total revenues
Actual
Amounts
100,000
2,500,000
-
$
29,113
2,282,212
51,242
2007
Variance with
Final Budget Positive
(Negative)
$
(70,887)
(217,788)
51,242
Actual
Amounts
$
116,362
1,709,281
242,876
2,600,000
2,362,567
(237,433)
2,068,519
Expenditures:
Salaries and benefits
Purchased services
Supplies and equipment
119,000
2,641,247
82,500
141,487
1,840,700
75,994
(22,487)
800,547
6,506
119,845
1,641,511
119,420
Total expenditures
2,842,747
2,058,181
784,566
1,880,776
(242,747)
304,386
547,133
187,743
242,747
242,747
Net change in fund balances
Fund balances - beginning
Fund balances - ending
$
-
$
- 61 -
547,133
$
547,133
55,004
$
242,747
THIS PAGE INTENTIONALLY LEFT BLANK
- 62 -
Section III
Statistical
Section
STATISTICAL SECTION
(Unaudited)
This part of the Davis School 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.
Page
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
District's financial performance and well-being have changed over time.
64 - 67
Revenue Capacity
These schedules contain information to help the reader assess the District's
most significant local revenue source, the property tax.
68 - 71
Debt Capacity
These schedules present information to help the reader assess the affordability
of the District's current levels of outstanding debt and the District's ability to
issue additional debt in the future.
72 - 76
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District's financial activities
take place.
77 - 80
Operating Information
These schedules contain service and infrastructure 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.
81 - 87
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The District implemented
GASB Statement 34 with the fiscal year beginning July 1, 2001; therefore, schedules
presenting government-wide information include information for the years June 30, 2002
to the present
- 63 -
DAVIS SCHOOL DISTRICT
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
Fiscal Year
2008
2007
2006
2005
2004
2003
2002
28,961,669
$ 149,364,856
$ 122,391,589
$ 124,199,055
$ 124,238,028
$ 116,182,367
$ 111,503,452
146,642,136
2,667,453
14,663,747
3,971,276
5,578,548
7,314,576
4,113,544
(4,346,827)
(5,857,924)
(2,772,659)
(1,896,086)
(2,148,750)
(3,817,263)
Governmental activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
$
(1,726,125)
173,877,680
147,685,482
131,197,412
125,397,672
127,920,490
121,348,193
111,799,733
9,421,174
9,872,671
10,285,758
10,506,045
11,003,534
9,840,343
6,485,597
Business activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business activities net assets
-
-
-
-
-
-
-
5,845,245
4,637,536
2,583,417
1,220,259
516,304
213,829
3,004,322
15,266,419
14,510,207
12,869,175
11,726,304
11,519,838
10,054,172
9,489,919
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
38,382,843
159,237,527
132,677,347
134,705,100
135,241,562
126,022,710
117,989,049
146,642,136
2,667,453
14,663,747
3,971,276
5,578,548
7,314,576
4,113,544
4,119,120
290,709
(3,274,507)
(1,552,400)
(1,379,782)
(1,934,921)
$ 189,144,099
$ 162,195,689
$ 144,066,587
$ 137,123,976
Note: The District began to report accrual information when it implemented GASB Statement 34 in Fiscal Year 2002.
- 64 -
$ 139,440,328
$ 131,402,365
(812,941)
$ 121,289,652
DAVIS SCHOOL DISTRICT
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
Expenses
2008
2007
2006
2005
2004
2003
2002
Governmental activities:
Instruction
$
315,325,500
$
253,530,785
$
239,681,284
$
230,210,116
$
216,235,269
$
207,796,373
$
210,974,901
Supporting services:
Student
13,436,051
11,887,545
11,482,626
10,904,832
10,340,410
10,068,576
10,472,963
Instructional staff
17,679,053
15,303,396
14,268,236
13,928,829
14,172,015
12,560,334
13,648,104
District administration
3,223,304
3,272,516
2,871,469
2,779,347
2,576,429
2,582,947
2,512,169
School administration
23,358,895
21,054,535
19,637,675
18,781,192
17,870,998
16,711,711
16,995,486
Business administration
11,225,624
9,659,034
8,842,764
8,332,384
8,432,651
7,726,503
7,915,053
Operation and maintenance of facilities
39,353,038
36,471,202
34,719,958
31,546,601
28,782,093
26,660,315
27,990,051
8,272,928
Student transportation
Interest on long-term liabilities
Total governmental activities expenses
13,318,469
12,437,899
12,048,701
9,691,248
9,409,323
8,677,925
13,534,129
12,435,282
12,102,047
11,129,849
8,837,120
8,877,188
6,527,105
450,454,063
376,052,194
355,654,760
337,304,398
316,656,308
301,661,872
305,308,760
20,750,195
18,838,343
17,914,642
16,939,064
15,980,327
15,683,848
15,715,232
7,722,053
7,788,524
7,629,873
7,597,058
7,407,741
6,689,259
6,537,058
28,472,248
26,626,867
25,544,515
24,536,122
23,388,068
22,373,107
22,252,290
Business-type activities:
School nutrition services
Pioneer Adult Rehabilitation Center
Total business-type activities expenses
Total primary government expenses
$
478,926,311
$
402,679,061
$
381,199,275
$
361,840,520
$
340,044,376
$
324,034,979
$
327,561,050
$
5,685,499
$
6,101,367
$
5,110,542
$
6,099,398
$
3,960,580
$
5,546,152
$
6,070,774
Program Revenues
Governmental activities:
Charges for services:
Instruction
Supporting services
Operating grants and contributions
Total governmental activities program revenues
401,668
924,952
98,718
115,825
106,215
88,902
122,680
89,205,740
80,263,213
75,607,227
59,393,900
72,457,836
52,317,066
75,575,261
95,292,907
87,289,532
80,816,487
65,609,123
76,524,631
57,952,120
81,768,715
Business-type activities:
Charges for services:
School food services
9,317,741
8,561,595
8,049,391
7,653,133
7,122,428
7,060,491
7,293,361
Pioneer adult reahb center
7,585,887
7,968,431
7,425,563
6,991,536
6,609,824
6,351,109
5,829,414
Operating grants and contributions
12,324,832
11,737,873
11,212,432
10,097,919
11,121,482
9,525,760
8,346,096
29,228,460
28,267,899
26,687,386
24,742,588
24,853,734
22,937,360
21,468,871
Total business-type activities program revenues
Total primary government program revenues
$
124,521,367
$
115,557,431
$
107,503,873
$
90,351,711
$
101,378,365
$
80,889,480
$
103,237,586
$
(355,161,156)
$
(288,762,662)
$
(274,838,273)
$
(271,695,275)
$
(240,131,677)
$
(243,709,752)
$
(223,540,045)
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
756,212
1,641,032
1,142,871
206,466
1,465,666
564,253
(783,419)
$
(354,404,944)
$
(287,121,630)
$
(273,695,402)
$
(271,488,809)
$
(238,666,011)
$
(243,145,499)
$
(224,323,464)
$
52,927,454
$
47,794,781
$
47,640,833
$
45,875,875
$
43,524,583
$
41,255,388
$
39,089,614
General Revenues and Other Changes in
Net Assets
Governmental activities:
Property taxes levied for:
General purposes
Transportation
2,335,233
1,959,023
1,891,874
1,789,916
1,747,691
1,554,397
1,476,989
Recreation
2,950,136
2,804,354
2,702,677
2,553,765
2,488,801
1,554,397
1,476,989
Debt service
38,948,551
34,497,583
31,584,472
28,899,586
27,952,903
27,372,285
26,009,161
Capital outlay
11,512,718
10,962,477
10,577,297
10,046,025
9,801,214
9,283,793
8,831,582
240,324,714
195,629,473
180,255,595
177,206,976
157,464,947
169,013,017
154,090,572
5,270,686
5,265,672
3,583,858
3,155,007
871,855
1,399,845
2,257,609
20,191,090
6,337,369
2,401,407
34,027
1,825,090
2,230,122
Federal and state reveune not restricted
to specific purposes
Interest
Miscellaneous
Total primary government general revenues
(354,693)
$
374,460,582
$
305,250,732
$
280,638,013
$
$
19,299,426
$
16,488,070
$
5,799,740
$
269,172,457
$
243,886,021
$
253,258,212
$
235,462,638
$
3,754,344
$
9,548,460
$
11,922,593
$
11,139,174
Change in Net Assets
Governmental activities
Business-type activities
Total primary government
756,212
$
20,055,638
1,641,032
$
1,142,871
18,129,102
$
6,942,611
Note: The District began to report accrual information when it implemented GASB Statement 34 in Fiscal Year 2002.
- 65 -
(2,522,818)
206,466
$
(2,316,352)
1,465,666
$
5,220,010
564,253
$
10,112,713
(783,419)
DAVIS SCHOOL DISTRICT
Fund Balances - Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 20, 2002 through 2008
2008
2007
2006
2005
2004
2003
2002
General Fund:
Reserved
$
3,068,975
$
1,619,498
$
1,668,283
$
1,395,663
$
819,464
$
878,232
$
1,263,609
Unreserved, designated
2,800,000
1,800,000
1,050,000
250,000
250,000
250,000
250,000
Unreserved, undesignated
3,883,937
4,065,600
3,363,129
3,633,945
4,127,223
3,572,725
1,732,964
Total fund balances
$
9,752,912
$
7,485,098
$
6,081,412
$
5,279,608
$
5,196,687
$
4,700,957
$
3,246,573
Debt Service Fund:
Reserved
$
Unreserved, designated
Unreserved, undesignated
Total fund balances
-
$
2,404,428
$
-
2,404,428
$
-
804,090
$
-
804,090
$
-
689,543
$
-
689,543
$
-
$
-
(27,606)
$
-
$
24,229
$
229,727
$
-
229,727
(27,606)
-
-
3,374,601
$
3,374,601
2,584,709
$
2,584,709
Capital Projects Fund:
Reserved
$
Unreserved, designated
Unreserved, undesignated
Total fund balances
-
$
81,539,741
$
81,539,741
-
$
202,890
$
202,890
-
$
9,894,442
36,614,833
$
9,894,442
-
$
22,009,309
-
-
$
19,245,177
-
30,965,675
-
-
$ 36,639,062
$ 22,009,309
$ 19,245,177
$ 30,965,675
$
$
$
$
Special Revenue Fund:
Reserved
$
Unreserved, designated
Unreserved, undesignated
Total fund balances
-
$
7,904,535 *
$
-
$
242,747
55,004
-
-
7,904,535
$
242,747
$
3,068,975
$
1,619,498
$
41,954
-
55,004
$
1,668,283
$
178,261
-
41,954
$
1,419,892
$
192,335
-
178,261
$
819,464
$
561
425,873
-
192,335
$
878,232
$
426,434
Total Governmental Funds:
Reserved
Unreserved, designated
Unreserved, undesignated
Total fund balances
$
92,244,276
2,245,637
6,288,365
$ 101,601,616
$
10,999,446
36,906,787
22,437,570
19,687,512
1,264,170
31,641,548
4,869,690
4,052,672
3,606,339
4,356,950
6,947,326
4,317,673
8,734,825
$ 16,720,401
$ 41,933,018
$ 27,613,984
$ 27,513,070
$ 37,223,391
Note: The District began to report accrual information when it implemented GASB Statement 34 in Fiscal Year 2002.
* Note: The Student Activities Fund was reclassified from an agency fund to a special revenue fund effective July 1, 2007. As a result of this change, the
beginning net asset balance was increased by $6,892,772. Prior years have not been restated.
- 66 -
DAVIS SCHOOL DISTRICT
Changes in Fund Balances - Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 20, 2002 through 2008
2008
2007
2006
2005
2004
2003
2002
$ 107,842,358
$ 98,061,449
$ 94,764,236
$ 89,175,738
$ 85,466,645
$ 81,232,455
$ 76,529,731
5,270,686
5,265,672
3,583,858
3,155,007
871,855
1,399,845
2,257,609
25,684,292
13,244,520
7,440,822
5,860,530
4,103,822
7,460,144
8,423,576
303,207,688
249,278,051
230,993,884
210,841,419
205,417,364
199,381,451
208,211,100
Revenues:
Property taxes
Interest
Other local sources
State of Utah
Federal government
Total revenues
26,322,766
26,614,635
24,868,938
25,759,457
24,505,419
21,948,632
21,454,733
468,327,790
392,464,327
361,651,738
334,792,151
320,365,105
311,422,527
316,876,749
280,577,305
229,498,868
213,582,956
204,179,277
194,750,658
189,907,872
192,381,062
Expenditures:
Current:
Instruction
Supporting services:
Students
13,312,679
11,782,588
11,362,816
10,782,609
10,253,567
9,986,622
10,392,710
Instructional staff
17,574,702
15,202,804
14,165,716
13,826,643
13,606,938
12,437,559
13,528,553
District administration
3,204,530
3,253,753
2,851,311
2,758,154
2,555,220
2,564,213
2,498,619
School administration
22,712,165
20,512,554
19,052,775
18,186,049
17,458,085
16,166,539
15,954,407
Business administration
10,946,328
9,428,097
8,584,891
8,059,917
7,704,925
7,501,076
7,695,701
27,231,882
Operation and maintenance of
facilities
Student transportation
Capital outlay
38,100,173
35,542,521
33,694,624
30,770,797
29,447,103
25,739,092
12,138,708
11,153,436
11,033,880
8,790,782
8,457,092
7,751,334
7,383,557
68,920,760
77,481,911
41,118,011
47,246,910
61,892,934
63,777,728
30,857,791
Debt service:
Tax anticipation note interest
1,345,800
1,373,883
994,611
792,515
419,055
731,250
735,417
Bond principal
23,605,000
23 605 000
22,880,000
22 880 000
19,940,000
19 940 000
18,995,000
18 995 000
22,780,000
22 780 000
17,925,000
17 925 000
17,020,000
17 020 000
Bond interest
12,968,323
11,194,210
11,009,634
9,921,781
7,898,464
7,939,123
5,355,615
Advance funding escrow
Bond issuance costs
Capital lease payments
Fees and miscellaneous charges
Total expenditures
Excess of expenditures over revenues
-
-
-
618,000
-
-
-
406,544
280,544
256,544
748,143
569,670
425,554
277,190
2,208,107
2,208,107
1,483,838
1,298,521
1,491,306
1,206,855
1,507,312
38,285
46,851
40,512
240,138
419,313
297,973
76,345
508,078,419
451,836,773
388,915,575
376,873,637
379,415,204
364,188,780
333,936,784
(39,750,629)
(59,372,446)
(27,263,837)
(42,081,486)
(59,050,099)
(52,766,253)
(17,060,035)
119,000,000
47,000,000
-
52,200,000
55,000,000
38,930,000
52,000,000
2,364,047
1,062,080
-
1,082,905
1,327,852
2,028,833
-
24,905,000
Other financing sources (uses):
General obligation bonds issued
General obligation bonds premium
Refunding bond issued
-
-
-
-
Refunding bond premium
-
-
-
1,894,757
-
-
Payment to refunded bond escrow agent
-
-
-
(26,020,216)
-
-
431,538
27,240,000
632,330
(27,781,957)
Capital leases
2,617,600
3,064,491
1,455,276
1,964,780
951,000
1,808,860
Sale of capital assets
1,743,001
260,299
595,944
373,294
1,872,161
288,239
244,955
125,724,648
51,386,870
2,051,220
56,400,520
59,151,013
43,055,932
52,766,866
85,974,019
(7,985,576)
(25,212,617)
14,319,034
100,914
(9,710,321)
35,706,831
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
15,627,597 *
$ 101,601,616
$
-
16,720,401
41,933,018
27,613,984
27,513,070
37,223,391
1,516,560
8,734,825
$ 16,720,401
$ 41,933,018
$ 27,613,984
$ 27,513,070
$ 37,223,391
9.3%
9.4%
10.1%
9.1%
8.3%
Debt service as a percentage of noncapital
expenditures
8.8%
9.8%
Note: The District began to report accrual information when it implemented GASB Statement 34 in Fiscal Year 2002.
* Note: The Student Activities Fund was reclassified from an agency fund to a special revenue fund effective July 1, 2007. As a result of this change, the
beginning net asset balance was increased by $6,892,772. Prior years have not been restated.
- 67 -
DAVIS SCHOOL DISTRICT
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Tax Years
December 31, 1998 through 2007
Assessed
Total Taxable
Tax
Commercial &
Year
2007
Residential
$
9,955,671,253
Industrial
$
3,141,846,380
Agriculture
$
123,379,683
Personal
$
1,059,363,010
$
Total
Estimated
Value as a
Assessed
Direct
Actual
Percentage of
Value
Tax Rate
Value
Actual Value
14,280,260,326
0.007176
$
22,432,352,520
63.7%
2006
8,026,810,761
2,998,155,808
129,163,796
860,077,858
12,014,208,223
0.007305
18,457,991,962
65.1%
2005
7,154,484,948
3,589,684,479
119,545,034
26,354,229
10,890,068,690
0.007684
17,135,120,877
63.6%
2004
6,718,404,694
3,398,273,977
108,938,108
28,804,941
10,254,421,720
0.007821
15,667,356,241
65.5%
2003
6,578,592,182
3,076,474,603
100,213,529
31,431,844
9,786,712,158
0.007731
14,509,725,213
67.4%
2002
5,949,628,780
2,919,479,838
499,450,603
32,116,988
9,400,676,209
0.007610
14,205,806,672
66.2%
2001
5,624,543,333
2,927,006,146
529,958,250
35,042,915
9,116,550,644
0.007600
13,920,405,974
65.5%
2000
5,317,235,364
2,444,372,417
404,279,043
37,530,785
8,203,417,609
0.007513
12,789,345,628
64.1%
1999
5,014,935,540
2,238,909,906
383,402,090
36,286,799
7,673,534,335
0.007370
12,092,080,432
63.5%
1998
4,692,012,310
2,115,807,994
377,425,210
37,303,845
7,222,549,359
0.007393
11,406,243,914
63.3%
- 68 -
DAVIS SCHOOL DISTRICT
Direct and Overlapping Property Tax Rates
Last Ten Tax Years
December 31, 1998 through 2007
(rate per $1 of assessed value)
Tax Rates for the Tax Year Ended December 31,
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
Davis School District direct rates:
General
0.003432
0.003494
0.003806
0.003921
0.003825
0.003803
0.003792
0.003690
0.003438
0.003294
Capital Outlay & Debt Service
0.003332
0.003388
0.003432
0.003446
0.003450
0.003443
0.003444
0.003454
0.003553
0.003717
Tort Liability
0.000063
0.000068
0.000072
0.000073
0.000073
0.000072
0.000072
0.000073
0.000075
0.000076
Special Transportation
0.000154
0.000146
0.000154
0.000157
0.000158
0.000146
0.000146
0.000148
0.000152
0.000153
Recreation
0.000195
0.000209
0.000220
0.000224
0.000225
0.000146
0.000146
0.000148
0.000152
0.000153
0.007176
0.007305
0.007684
0.007821
0.007731
0.007610
0.007600
0.007513
0.007370
0.007393
County Funds
0.002189
0.001739
0.001921
0.001948
0.001954
0.001650
0.001664
0.001710
0.001833
0.002648
County Library
0.000375
0.000403
0.000426
0.000432
0.000434
0.000431
0.000431
0.000435
0.000287
0.000298
Average Cities and Towns
0.001361
0.001423
0.001641
0.001666
0.001661
0.001579
0.001481
0.001562
0.001633
0.001679
Miscellaneous Taxing Districts
0.000390
0.000414
0.000842
0.000800
0.000818
0.000835
0.001059
0.000831
0.000584
0.000412
Total direct rate
Overlapping Rates:
- 69 -
DAVIS SCHOOL DISTRICT
Principal Property Tax Payers
Current Year and Nine Years Ago
December 31, 2007 and 1998
December 31, 2007
Taxable
Taxpayer
Type of Business
Chevron U.S.A. Inc
Petroleum Refinery
Freeport Center Associates
Distribution / Warehouse
PacifiCorp
Value
$
Rank
December 31, 1998
Percent of
Percent of
District's Total
District's Total
Taxable
Taxable
Value
Value
$
Taxable
Rank
Value
171,165,852
1
1.20%
83,024,106
1
1.15%
155,685,824
2
1.09%
71,117,434
3
0.98%
Electrical Distribution
91,612,165
3
0.64%
64,203,055
5
0.89%
Layton Hills L L C
Real Estate (Mall)
90,340,886
4
0.63%
48,385,537
7
0.67%
Big West Oil Petroleum
Petroleum Distribution
74,422,084
5
0.52%
-
-
-
Smith’s Food and Drug
Distribution / Retail sales
70,355,447
6
0.49%
67,358,725
4
0.93%
Qwest Communications
Communication
65,558,589
7
0.46%
82,518,066
2
1.14%
Albertson’s
Distribution / Retail sales
51,593,534
8
0.36%
48,644,704
6
0.67%
Questar Gas
Natural Gas Utility
48,821,642
9
0.34%
31,189,052
9
0.43%
43,859,596
Lifetime Products
Manufacturing
10
0.31%
-
-
-
Phillips 66
Petroleum Refinery
-
-
n/a
31,263,312
8
0.43%
Union Pacific R.R.
Railroad Company
-
-
n/a
29,014,228
10
0.40%
Totals
$
863,415,619
Source: Davis County Auditor's Office
- 70 -
6.04%
$
556,718,219
7.69%
DAVIS SCHOOL DISTRICT
Property Tax Levies and Collections
Last Ten Tax Years
December 31, 1998 through 2007
Property Taxes
Property Taxes Collected within
Tax Year
Levied
the Calendar Year of the Levy
Ended
For The
December 31,
Calendar Year
2007
$
99,911,471
Amount
$
Total Property Tax
Collections
Percentage
in Subsequent
of Levy
Years
89,489,555
89.57% *
$
-
Collections to Date
Percentage
$
Amount
of Levy
89,489,555
89.57%
2006
85,572,399
81,008,796
94.67%
3,935,480
84,944,276
99.27%
2005
81,303,555
76,725,383
94.37%
4,360,079
81,085,462
99.73%
2004
77,870,844
73,207,446
94.01%
4,576,127
77,783,573
99.89%
2003
75,661,072
71,635,764
94.68%
3,982,871
75,618,635
99.94%
2002
71,539,146
67,537,541
94.41%
4,001,605
71,539,146
100.00%
2001
69,285,785
64,854,449
93.60%
4,431,336
69,285,785
100.00%
2000
61,632,277
58,246,198
94.51%
3,386,079
61,632,277
100.00%
1999
56,553,948
53,850,951
95.22%
2,702,997
56,553,948
100.00%
1998
53,396,308
51,169,904
95.83%
2,226,404
53,396,308
100.00%
* In 2007, there was a tax abatement of $5,698,691. Were it not the case, the collection rate would have been 94.99%.
Source: Davis County Treasurer's Office (excludes fee-in-lieu and age-based collections on motor vehicles).
This schedule recognizes collections on a calendar year (tax year) cash basis, whereas property tax collections
reported in the basic financial statements are on a fiscal year modified accrual basis of accounting.
- 71 -
DAVIS SCHOOL DISTRICT
Ratios of Outstanding Debt
Last Ten Fiscal Years
Fiscal
Outstanding
Net General
Net
Net
Debt As
Year
General
Bonded Debt As
Bonded
Bonded
Percentage
Debt
Ended
Obligation
Percentage of
Debt Per
Debt Per
Capital
Total
of Taxable
Per
Per
June 30,
Bonds
Taxable Value
Capita
Student
Leases
Debt
Value
Capita
Student
2008
$
342,880,000
2.40%
$
1,158
$
5,312
2007
247,485,000
2.06%
864
3,939
2006
223,365,000
2.05%
795
2005
243,305,000
2.49%
2004
210,890,000
2003
$
350,501,136
2.45%
$ 1,184
$ 5,430
7,663,350
255,148,350
2.12%
891
4,061
3,582
6,698,472
230,063,472
2.11%
819
3,690
904
4,014
6,783,640
250,088,640
2.56%
930
4,126
2.24%
824
3,514
5,815,045
216,705,045
2.31%
847
3,611
178,670,000
1.96%
720
3,001
6,110,176
184,780,176
2.03%
745
3,104
2002
157,665,000
1.92%
646
2,677
5,601,209
163,266,209
1.99%
669
2,772
2001
122,695,000
1.60%
513
2,088
6,794,542
129,489,542
1.69%
542
2,204
2000
138,475,000
1.92%
584
2,349
5,618,588
144,093,588
2.00%
608
2,444
1999
154,145,000
2.37%
690
2,621
6,407,025
160,552,025
2.47%
719
2,730
- 72 -
7,621,136
$
Debt
DAVIS SCHOOL DISTRICT
Overlapping and Underlying General Obligation Debt
June 30, 2008
District's
2007
Estimated
Entity's
District's
Estimated
General
Estimated
Taxable
Portion of
District's
Obligation
Portion of
Value (1)
Taxable Value
Percentage
Debt
Debt
State of Utah
$ 190,009,782,730
$ 14,280,260,326
7.5%
$ 1,161,510,000
Davis County
14,280,260,326
14,280,260,326
Taxing Entity
Overlapping:
100.0%
$
23,745,000
87,113,250
23,745,000
Total Overlapping
110,858,250
Underlying:
36,688,101,003
14,280,260,326
38.9%
33,806,619
13,150,775
North Davis Sewer District
WBWCD (2) (3)
7,469,095,340
6,166,694,969
82.6%
56,022,000
46,274,172
Clearfield City (3)
1,140,970,470
1,140,970,470
100.0%
11,175,000
North Salt Lake City (3)
-
1,196,850,522
1,196,850,522
100.0%
5,325,000
Farmington City
930,945,540
930,945,540
100.0%
4,745,000
Clinton City (3)
607,986,120
607,986,120
100.0%
526,000
-
West Bountiful City (3)
312,596,187
312,596,187
100.0%
1,415,000
-
5,414,640,100
5,414,640,100
100.0%
17,590,000
South Davis Rec. District (4)
4,745,000
17,590,000
Total Underlying
81,759,947
Total Overlapping and Underlying General Obligation Debt
$
Total Overlapping General Obligation Debt (Excluding the State) (5)
$
Total Direct General Obligation Bonded Indebtedness
192,618,197
23,745,000
342,880,000
Total Direct and Overlapping General Obligation Debt (Exluding the State) (5)
$
366,625,000
__________________
(1) 2006 values are preliminary and subject to change. Taxable value used in this table excludes the taxable value used to
determine uniform fees on tangible personal property.
(2) The Weber Basin Water Conservancy District ("WBWCD") covers all of Morgan County, most of the County and Weber County,
and portions of Box Elder and Summit Counties. Principal and interest on WBWCD general obligation bonds are paid from sales of water.
WBWCD's outstanding general obligation bonds are limited ad valorem tax bonds. By law, WBWCD may levy a tax rate of up to .000200
to pay, first, for any outstanding general obligation indebtedness, then for operation and maintenance expenses, and then for any other
lawful purpose
(3) All or portions of these governmental entities' outstanding general obligation debt are supported by user fee revenues from water
or sewer. The County's portion of overlapping general obligation debt has been reduced to the extent that such general obligation
debt is supported by "user fee revenues".
(4) South Davis Recreation District members are Bountiful, Centerville, North Salt Lake, Woods Cross, and West Bountiful.
(5) The State's general obligation debt is not included in overlapping debt because the State currently levies no property tax for
payment of general obligation bonds.
- 73 -
DAVIS SCHOOL DISTRICT
General Obligation Legal Debt Limit and Debt Capacity
Last Ten Years
Fiscal
Year
Estimated Fair
Debt Limit
Estimated
Market Value for
(4% of Fair
General
Debt
Deferred
Additional
Percentage
of Debt
Ended
Estimated Fair
Value from
Debt Incurring
Market
Obligation
Issuance
Amounts on
Debt
To Debt
June 30,
Market Value
Uniform Fees
Capacity
Value)
Debt
Premiums
Refunding
Capacity
Limit
2008
$ 22,432,352,520
2007
$
1,347,035,643
$ 23,779,388,163
$
951,175,527
601,309,953
36.78%
18,457,991,962
1,277,851,892
19,735,843,854
789,433,754
247,485,000
6,122,926
1,002,635
536,828,463
32.00%
2006
17,135,120,877
1,237,153,267
18,372,274,144
734,890,966
223,365,000
5,602,338
1,137,073
507,060,701
31.00%
2005
14,509,725,213
1,201,209,533
15,710,934,746
628,437,390
243,305,000
6,084,164
1,271,511
380,319,737
39.48%
2004
14,205,806,672
1,377,761,676
15,583,568,348
623,342,734
210,890,000
3,506,743
349,846
409,295,837
34.34%
2003
13,920,405,974
1,180,455,311
15,100,861,285
604,034,451
178,670,000
2,398,243
401,990
423,368,198
29.91%
2002
12,789,345,628
1,083,696,821
13,873,042,449
554,921,698
157,665,000
409,450
454,134
397,301,382
28.40%
2001
12,092,080,432
977,107,275
13,069,187,707
522,767,508
122,695,000
-
-
400,072,508
23.47%
2000
11,406,243,914
1,012,630,371
12,418,874,285
496,754,971
138,475,000
-
-
358,279,971
27.88%
1999
11,406,243,914
989,686,341
12,395,930,255
495,837,210
138,475,000
-
-
357,362,210
27.93%
- 74 -
$
342,880,000
$
7,853,771
$
868,197
$
DAVIS SCHOOL DISTRICT
Schedule of Annual Debt Service Requirements
Years Ending June 30, 2009 to 2028
Year Ending
Total
June 30,
2009
Principal
$
27,380,000
Interest
$
15,242,305
Payment
$
42,622,305
2010
24,300,000
13,960,266
38,260,266
2011
25,180,000
12,949,197
38,129,197
2012
26,400,000
11,806,429
38,206,429
2013
26,940,000
10,599,709
37,539,709
2014
24,580,000
9,441,758
34,021,758
2015
25,650,000
8,378,720
34,028,720
2016
26,775,000
7,255,451
34,030,451
2017
27,315,000
6,086,177
33,401,177
2018
24,675,000
4,862,201
29,537,201
2019
17,085,000
3,824,539
20,909,539
2020
17,820,000
3,056,800
20,876,800
2021
13,775,000
2,264,519
16,039,519
2022
9,850,000
1,640,331
11,490,331
2023
3,625,000
1,181,081
4,806,081
2024
3,775,000
107,956
3,882,956
2025
3,950,000
843,363
4,793,363
2026
4,125,000
655,737
4,780,737
2027
4,325,000
459,800
4,784,800
2028
5,355,000
254,362
5,609,362
$
342,880,000
$
- 75 -
114,870,701
$
457,750,701
DAVIS SCHOOL DISTRICT
Debt Service Schedule of Outstanding General Obligation Bonds
Years Ending June 30, 2009 to 2028
PRINCIPAL
1999
2001
40,525,000
10,000,000
$
445,000
$
2002A
2002B
27,240,000
42,000,000
3,640,000
$
2003
2,625,000
38,930,000
$
2,180,000
$
2003B
2005A
2005B
55,000,000
52,200,000
24,905,000
3,550,000
$
2,885,000
$
2006
-
2007
47,000,000
$
2,650,000
2008
55,000,000
$
100,000
64,000,000
$
3,100,000
Total
2009
$ 6,205,000
$
27,380,000
2010
2,955,000
465,000
3,790,000
2,725,000
2,265,000
3,650,000
3,030,000
-
2,750,000
450,000
2,220,000
24,300,000
2011
-
480,000
3,965,000
2,850,000
2,380,000
3,750,000
3,180,000
2,975,000
2,850,000
475,000
2,275,000
25,180,000
2012
-
505,000
4,200,000
3,000,000
2,500,000
3,900,000
3,340,000
3,130,000
2,975,000
500,000
2,350,000
26,400,000
2013
-
525,000
-
3,125,000
2,625,000
4,050,000
3,505,000
3,285,000
3,100,000
4,300,000
2,425,000
26,940,000
2014
-
-
-
3,275,000
2,755,000
4,225,000
3,645,000
480,000
3,225,000
4,475,000
2,500,000
24,580,000
2015
-
-
-
-
2,865,000
4,400,000
3,810,000
3,925,000
3,375,000
4,675,000
2,600,000
25,650,000
2016
-
-
-
-
2,985,000
4,600,000
3,965,000
4,125,000
3,550,000
4,875,000
2,675,000
26,775,000
2017
-
-
-
-
3,110,000
4,800,000
4,120,000
3,685,000
3,700,000
5,100,000
2,800,000
27,315,000
2018
-
-
-
-
3,240,000
5,050,000
4,285,000
-
3,850,000
5,325,000
2,925,000
24,675,000
2019
-
-
-
-
-
-
4,460,000
-
4,025,000
5,550,000
3,050,000
17,085,000
2020
-
-
-
-
-
-
4,645,000
-
4,175,000
5,825,000
3,175,000
17,820,000
2021
-
-
-
-
-
-
-
-
4,375,000
6,100,000
3,300,000
13,775,000
2022
-
-
-
-
-
-
-
-
-
6,400,000
3,450,000
9,850,000
2023
-
-
-
-
-
-
-
-
-
-
3,625,000
3,625,000
2024
-
-
-
-
-
-
-
-
-
-
3,775,000
3,775,000
2025
-
-
-
-
-
-
-
-
-
-
3,950,000
3,950,000
2026
-
-
-
-
-
-
-
-
-
-
4,125,000
4,125,000
2027
-
-
-
-
-
-
-
-
-
-
4,325,000
4,325,000
2028
Total
-
-
-
-
-
-
-
-
-
-
5,355,000
5,355,000
$ 9,160,000
$ 2,420,000
$ 15,595,000
$ 17,600,000
$ 26,905,000
$ 41,975,000
$ 44,870,000
$ 21,605,000
$ 44,600,000
$ 54,150,000
$ 64,000,000
$ 342,880,000
INTEREST
1999
2001
$
2002A
108,145
$
2002B
758,200
$
2003
823,263
$
2003B
1,200,819
$
2005A
1,682,313
$
2005B
1,965,944
$
2006
1,076,650
$
2007
1,909,188
$
2008
2,470,906
$
2,846,127
Total
2009 $
400,750
$
15,242,305
2010
129,281
89,233
603,500
705,138
1,113,619
1,575,813
1,821,694
1,076,650
1,803,188
2,466,906
2,575,244
13,960,266
2011
-
69,470
432,950
582,513
1,000,369
1,466,313
1,670,194
1,076,650
1,693,188
2,448,906
2,508,644
12,949,197
2012
-
48,470
220,875
451,413
881,369
1,316,313
1,511,194
927,900
1,579,188
2,429,313
2,440,394
11,806,429
2013
-
26,250
-
308,913
756,369
1,160,313
1,344,194
771,400
1,460,188
2,408,063
2,364,019
10,599,709
2014
-
-
-
160,475
625,119
998,313
1,203,994
607,150
1,336,188
2,225,313
2,285,206
9,441,758
2015
-
-
-
-
514,919
829,313
1,039,969
586,750
1,174,938
2,035,125
2,197,706
8,378,720
2016
-
-
-
-
396,738
631,313
887,569
390,500
1,006,188
1,836,437
2,106,706
7,255,451
2017
-
-
-
-
269,875
424,313
728,969
184,250
855,313
1,617,063
2,006,394
6,086,177
2018
-
-
-
-
137,700
208,313
564,169
-
698,063
1,387,562
1,866,394
4,862,201
2019
-
-
-
-
-
-
392,769
-
534,438
1,147,938
1,749,394
3,824,539
2020
-
-
-
-
-
-
203,219
-
363,375
870,437
1,619,769
3,056,800
2021
-
-
-
-
-
-
-
-
185,938
593,750
1,484,831
2,264,519
2022
-
-
-
-
-
-
-
-
-
304,000
1,336,331
1,640,331
2023
-
-
-
-
-
-
-
-
-
-
1,181,081
1,181,081
2024
-
-
-
-
-
-
-
-
-
-
107,956
107,956
2025
-
-
-
-
-
-
-
-
-
-
843,363
843,363
2026
-
-
-
-
-
-
-
-
-
-
655,737
655,737
2027
-
-
-
-
-
-
-
-
-
-
459,800
459,800
2028
Total
$
530,031
$
341,568
$
2,015,525
$
4,398,200
$
3,031,715
-
-
-
$
6,896,896
$ 10,292,630
$ 13,333,878
$
3,380,819
$
-
-
-
254,362
254,362
6,697,900
$ 14,599,381
$ 24,241,719
$ 32,889,458
$ 114,870,701
TOTAL PAYMENT
1999
2001
2009 $ 6,605,750
$
2002A
553,145
2002B
$
2003
3,448,263
2003B
$
2005A
5,232,313
$
2005B
4,850,944
$
2006
1,076,650
$
2007
4,559,188
$
2008
2,570,906
$
5,946,127
Total
$
42,622,305
2010
3,084,281
554,233
4,393,500
3,430,138
3,378,619
5,225,813
4,851,694
1,076,650
4,553,188
2,916,906
4,795,244
38,260,266
2011
-
549,470
4,397,950
3,432,513
3,380,369
5,216,313
4,850,194
4,051,650
4,543,188
2,923,906
4,783,644
38,129,197
2012
-
553,470
4,420,875
3,451,413
3,381,369
5,216,313
4,851,194
4,057,900
4,554,188
2,929,313
4,790,394
38,206,429
2013
-
551,250
-
3,433,913
3,381,369
5,210,313
4,849,194
4,056,400
4,560,188
6,708,063
4,789,019
37,539,709
2014
-
-
-
3,435,475
3,380,119
5,223,313
4,848,994
1,087,150
4,561,188
6,700,313
4,785,206
34,021,758
2015
-
-
-
-
3,379,919
5,229,313
4,849,969
4,511,750
4,549,938
6,710,125
4,797,706
34,028,720
2016
-
-
-
-
3,381,738
5,231,313
4,852,569
4,515,500
4,556,188
6,711,437
4,781,706
34,030,451
2017
-
-
-
-
3,379,875
5,224,313
4,848,969
3,869,250
4,555,313
6,717,063
4,806,394
33,401,177
2018
-
-
-
-
3,377,700
5,258,313
4,849,169
-
4,548,063
6,712,562
4,791,394
29,537,201
2019
-
-
-
-
-
-
4,852,769
-
4,559,438
6,697,938
4,799,394
20,909,539
2020
-
-
-
-
-
-
4,848,219
-
4,538,375
6,695,437
4,794,769
20,876,800
2021
-
-
-
-
-
-
-
-
4,560,938
6,693,750
4,784,831
16,039,519
2022
-
-
-
-
-
-
-
-
-
6,704,000
4,786,331
11,490,331
2023
-
-
-
-
-
-
-
-
-
-
4,806,081
4,806,081
2024
-
-
-
-
-
-
-
-
-
-
3,882,956
3,882,956
2025
-
-
-
-
-
-
-
-
-
-
4,793,363
4,793,363
2026
-
-
-
-
-
-
-
-
-
-
4,780,737
4,780,737
2027
-
-
-
-
-
-
-
-
-
-
4,784,800
4,784,800
2028
Total
-
-
-
-
-
-
-
-
-
-
5,609,362
5,609,362
$ 9,690,031
$ 2,761,568
$ 17,610,525
$ 20,631,715
$ 33,801,896
$ 52,267,630
$ 58,203,878
$ 28,302,900
$ 59,199,381
$ 78,391,719
$ 96,889,458
$ 457,750,701
- 76 -
DAVIS SCHOOL DISTRICT
Demographic and Economic Statistics
For the years 1998 - 2007
School
District
County
Personal
Per Capita
Unemployment
October 1
Year
Population (1)
Income (2,4)
Income (2)
Births (3)
Deaths (3)
Rate (2)
Enrollment
2007
296,029
9,320.0
$31,483
2,949
1,163
2.6%
64,551
2006
286,500
8,725.0
$30,455
3,139
1,096
3.1%
62,832
2005
281,000
8,157.0
29,027
3,002
1,084
3.7%
62,349
2004
269,000
7,344.0
27,302
2,974
1,666
4.4%
60,614
2003
256,000
6,897.0
26,943
2,890
1,072
5.2%
60,007
2002
248,000
6,200.0
25,002
2,840
1,038
5.2%
59,536
2001
244,000
6,278.0
25,730
2,967
963
3.9%
58,900
2000
238,994
5,831.0
24,400
2,781
943
3.0%
58,754
1999
237,000
5,041.0
21,270
2,755
910
3.5%
58,947
1998
230,000
4,738.0
20,600
2,641
866
3.5%
58,767
52.8%
11.7%
34.3%
-25.7%
9.8%
Percentage increase from 1998 to 2007
28.7%
96.7%
(1) Davis County Department of Community & Economic Development.
(2) Utah Department of Workforce Services
(3) Davis County Health Department - Vital Statistics.
- 77 -
DAVIS SCHOOL DISTRICT
Labor Market Data
Davis County
For Years 1999 to 2008
Total civilian work force
Employed
2008 (1)
2007
2006
2005
2004
2003
2002
2001
2000
1999
146,678
141,462
138,772
134,942
132,341
128,938
124,715
121,492
119,528
124,570
141,948
137,772
134,782
129,573
126,167
122,368
118,461
116,578
115,797
120,511
4,730
3,690
3,990
5,369
6,174
6,570
6,254
4,914
3,731
Unemployed
Unemployment rate
Total non-agricultural employment
3.2%
2.6%
2.9%
105,150
104,615
137
116
9,236
10,658
Mining
Contract construction
Manufacturing
Trade, transportation and utilities
4,059
4.0%
4.7%
5.1%
5.0%
4.0%
3.1%
3.3%
100,547
95,963
93,284
89,722
88,886
87,579
84,846
82,234
558
137
118
62
59
95
89
71
9,447
8,287
7,492
6,861
6,718
7,115
7,064
7,034
9,828
10,164
10,632
10,591
10,461
10,363
10,073
9,925
10,125
10,381
20,895
20,494
19,458
19,063
19,450
18,383
18,638
18,798
18,517
17,477
Information
1,021
975
903
882
883
893
915
752
714
730
Financial services
2,854
4,089
4,078
3,906
3,832
3,556
3,197
3,304
3,217
3,319
13,273
11,880
10,534
9,221
8,220
7,739
7,647
6,926
6,284
5,874
9,920
9,377
9,004
8,637
8,319
8,003
7,630
7,566
7,245
6,884
10,218
9,744
8,948
8,503
8,304
8,013
7,880
7,845
7,695
7,398
3,144
3,122
3,033
2,734
2,771
2,673
2,641
2,425
2,258
2,174
24,624
23,989
24,338
24,002
23,434
23,162
23,488
22,828
21,638
20,893
Professional and business services
Education and health services
Leisure and hospitality
Other services
Government
(1) Preliminary data through September 2008.
(Source: Utah Department of Workforce Services.)
- 78 -
DAVIS SCHOOL DISTRICT
Principal Employers
Current Year and Nine Years Ago
2007
Business
1998
Percent
Percent
of County
of County
Employees
Rank
Employment
Employees
Rank
Employment
10,000 - 14,999
1
10.8%
15,000 - 19,999
1
17.2%
Davis School District
5,000 - 6,999
2
5.0%
5,000 - 6,999
2
6.0%
Lagoon Inc.
1,000 - 1,999
3
1.4%
500 - 999
9
0.9%
Lifetime Products, Inc.
1,000 - 1,999
4
1.4%
500 - 999
11
0.9%
Smith's Distribution Center
1,000 - 1,999
5
1.4%
250 - 499
3
0.4%
Walmart
1,000 - 1,999
6
1.4%
250 - 499
33
0.4%
Albertson's
500 - 999
7
0.7%
500 - 999
3
0.9%
Citicorp Credit Services
500 - 999
8
0.7%
n/a
n/a
n/a
Davis County
500 - 999
9
0.7%
500 - 999
5
0.9%
Davis Hospital and Medical Center
500 - 999
10
0.7%
500 - 999
6
0.9%
Lakeview Hospital
500 - 999
11
0.7%
500 - 999
10
0.9%
Lofthouse Bakery Products
500 - 999
12
0.7%
500 - 999
13
0.9%
Management & Training Corp
500 - 999
13
0.7%
n/a
n/a
n/a
South Davis Community Hospital Inc
500 - 999
14
0.7%
n/a
n/a
n/a
State of Utah
500 - 999
15
0.7%
n/a
n/a
n/a
Hill Air Force Base
Totals
23,000-37,987
27.0%
Source: Davis County Auditor's Office
- 79 -
25,500-37,988
32.8%
DAVIS SCHOOL DISTRICT
District Facilities and Personnel Positions
Years Ended June 30, 1999 to 2008
2008
2007
2006
2005
Elementary Schools
56
54
53
53
Junior High Schools
14
14
14
14
8
7
7
7
Facilities Operated:
High Schools
Special Purpose Schools
6
6
6
6
84
81
80
80
Administrators, Managers
56.4
56.4
56.4
56.4
School Principals
83.0
80.0
79.0
79.0
School Assistant Principals / Interns
94.0
91.0
90.0
90.0
Elementary Classroom Teachers
1,419.0
1,383.0
1,351.0
1,332.0
Secondary Classroom Teachers
1,115.0
1,085.0
1,075.0
1,072.0
Guidance Personnel
121.8
118.8
117.8
117.0
Special Education
486.0
473.0
462.0
452.0
Librarians / Media Specialists
76.8
73.8
72.8
72.8
Supervisors of Instruction
35.5
35.5
34.5
35.5
Other Professional Staff
171.6
170.6
169.2
169.0
Teacher Assistants
768.4
760.2
756.5
756.0
Secretarial
213.2
207.0
205.0
205.0
Office Assistants
183.1
177.2
175.0
175.0
Custodial
365.2
357.0
355.0
355.0
Maintenance
130.7
129.7
129.7
128.5
Nutrition Services
237.4
229.2
225.6
225.0
Transportation
226.5
224.5
222.0
222.0
35.9
35.9
35.9
35.0
5,819.5
5,687.8
5,612.4
5,577.2
Total Number of School Buildings
Full-Time Equivalent Positions of the District:
Warehouse
Total number of District positions FTE
Source: District Budget Office
- 80 -
DAVIS SCHOOL DISTRICT
Average Daily Membership and October Enrollment
Years Ended June 30, 1999 to 2008
Fiscal
Year
Ending
June 30,
Average
Daily
Membership
Annual
Increase/
(Decrease)
October 1st
Enrollment
Annual
Increase/
(Decrease)
2008
60,004
1,366
64,551
1,719
2007
58,638
909
62,832
483
2006
57,729
1,700
62,349
1,735
2005
56,029
378
60,614
607
2004
55,651
148
60,007
471
2003
55,503
101
59,536
636
2002
55,402
9
58,900
146
2001
55,393
(232)
58,754
(193)
2000
55,625
27
58,947
180
1999
55,598
55,598
58,767
(45)
Average Daily Membership equals total aggregate days of membership of all students
divided by 180 days of school.
Enrollment is taken each October 1st for that school year, and is a headcount of all
students, including all kindergarten even though in membership for only half days.
Source: District Budget Office
- 81 -
DAVIS SCHOOL DISTRICT
Expenditures by Function - General Fund
Last Ten Fiscal Years
Fiscal Year Ended June 30,
Function
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
$262,946,407
$228,285,305
$212,571,844
$203,302,250
$193,971,439
$189,170,366
$191,788,228
$175,320,271
$164,920,217
$159,435,286
68.78%
67.83%
67.62%
68.38%
68.34%
69.54%
69.18%
67.98%
68.36%
69.67%
13,312,679
11,782,588
11,362,816
10,782,609
10,253,567
9,986,622
10,392,710
9,849,285
7,935,472
6,678,789
3.48%
3.50%
3.62%
3.63%
3.61%
3.67%
3.75%
3.82%
3.29%
2.92%
17,574,702
15,202,804
14,165,716
13,826,643
13,606,938
12,437,559
13,528,553
12,825,054
11,403,582
10,498,428
4.60%
4.52%
4.51%
4.65%
4.79%
4.57%
4.88%
4.97%
4.73%
4.59%
3,204,530
3,253,753
2,851,311
2,758,154
2,555,220
2,564,213
2,498,619
2,510,053
2,217,041
2,031,158
0.84%
0.97%
0.91%
0.93%
0.90%
0.94%
0.90%
0.97%
0.92%
0.89%
22,712,165
20,512,554
19,052,775
18,186,049
17,458,085
16,166,539
15,954,407
15,102,521
14,353,927
13,068,719
5.94%
6.10%
6.06%
6.12%
6.15%
5.94%
5.76%
5.86%
5.95%
5.71%
10,946,328
9,428,097
8,584,891
8,059,917
7,704,925
7,501,076
7,695,701
6,797,796
6,448,382
5,852,052
2.86%
2.80%
2.73%
2.71%
2.71%
2.76%
2.78%
2.64%
2.67%
2.56%
Operation & maintenance
of facilities
38,100,173
35,542,521
33,694,624
30,770,797
29,447,103
25,739,092
27,231,882
26,985,100
25,971,933
23,858,572
9.97%
10.56%
10.72%
10.35%
10.37%
9.46%
9.82%
10.46%
10.77%
10.43%
Student transportation
12,138,708
11,153,436
11,033,880
8,790,782
8,457,092
7,751,334
7,383,557
7,478,060
7,465,336
6,833,635
3.18%
3.31%
3.51%
2.96%
2.98%
2.85%
2.66%
2.90%
3.09%
2.99%
1,345,800
1,373,883
994,611
792,515
419,055
731,250
735,417
1,029,583
530,115
558,917
0.35%
0.41%
0.32%
0.27%
0.15%
0.27%
0.27%
0.40%
0.22%
0.24%
$382,281,492
$336,534,941
$314,312,468
$297,269,716
$283,873,424
$272,048,051
$277,209,074
$257,897,723
$241,246,005
$228,815,556
Instruction
Supporting services:
Students
Instructional staff
District administration
School administration
Business administration
Tax anticipation note
interest
Total Expenditures
- 82 -
DAVIS SCHOOL DISTRICT
Expenditures Per ADM by Function - General Fund
Last Ten Fiscal Years
Fiscal Year Ended June 30,
Function
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
$4,382
$3,893
$3,682
$3,629
$3,485
$3,408
$3,462
$3,165
$2,965
$2,868
Students
222
201
197
192
184
180
188
178
143
120
Instructional staff
293
259
245
247
245
224
244
232
205
189
District administration
53
55
49
49
46
46
45
45
40
37
School administration
379
350
330
325
314
291
288
273
258
235
Business administration
182
161
149
144
138
135
139
123
116
105
Operation & maintenance of facilities
635
606
584
549
529
464
492
487
467
429
Student transportation
202
190
191
157
152
140
133
135
134
123
22
23
17
14
8
13
13
19
10
10
$6,371
$5,739
$5,445
$5,306
$5,101
$4,902
$5,004
$4,656
$4,337
$4,116
Instruction
Supporting services:
Tax anticipation note interest
Total Expenditures per ADM
- 83 -
DAVIS SCHOOL DISTRICT
Weighted Pupil Units (WPU'S)
Regular WPU'S and Other by Formula
Years Ended June 30, 1999 to 2008
WPU TYPE
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
Regular Grades K-12
60,225
58,201
57,774
56,204
55,792
55,909
55,402
55,393
55,625
55,139
5,782
5,587
5,546
5,339
5,285
5,190
5,017
4,900
4,885
4,848
16
16
16
16
16
16
16
16
16
16
4
-
-
-
-
-
-
-
-
-
Special Education
8,568
8,127
7,994
8,022
7,767
7,037
6,654
6,827
6,814
6,787
Career and Technical Ed
3,297
2,923
2,731
2,682
2,532
2,672
2,644
2,000
2,190
2,200
Adult High School
-
-
-
-
-
-
-
273
280
292
Accelerated Learning
-
-
-
-
-
-
-
408
391
388
At-Risk Students
-
-
-
-
-
-
-
769
885
816
Career Ladders
-
-
-
-
-
-
-
2,981
2,911
2,922
3,925
3,647
3,737
3,649
3,618
3,624
3,589
3,581
3,636
3,216
-
-
-
-
-
-
-
1,409
1,417
1,413
21,592
20,300
20,023
19,708
19,218
18,539
17,920
23,164
23,425
22,898
Other WPU's by Formula
Professional staff
Administrative Cost
Foreign Exch Students
Class-Size Reduction
Local Program
Total other WPU's
TOTAL ALL WPU'S
81,817
78,501
77,797
75,912
75,010
74,448
73,322
78,557
79,050
78,037
The decrease in WPU's in 2002 was due to a change in the State funding formula. Categories previously funded by WPU's
were moved to block grants.
Weighted Pupil Units
90,000
80,000
70,000
Other
WPU's
60,000
Regular
WPU's
50,000
40,000
2008
2007
2006
2005
2004
- 84 -
2003
2002
2001
2000
1999
DAVIS SCHOOL DISTRICT
Student Enrollment Projections
For the next twenty years
90,000
Total Projected
Enrollment
80,000
70,000
60,000
50,000
Elementary
Enrollment
40,000
30,000
Junior High
20,000
High School
10,000
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
0
These projections are based upon the State of Utah's Economic and Demographic Projections, from the Governor's
Office of Planning and Budget. Information pertaining to Davis County is extracted, then adjusted for local birth rates
and "in" and "out" migration factors to arrive at the final estimate.
- 85 -
DAVIS SCHOOL DISTRICT
American College Test (ACT) Results
Years Ended June 30, 1999 to 2008
AVERAGE SCORES on a 36 point scale
Year
English
Math
Reading
Science
Reasoning
Composite
District
Composite
State
Composite
Nation
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
22.1
21.9
21.8
21.8
21.6
21.1
21.2
21.6
21.4
21.7
22.2
22.1
21.9
21.8
21.8
21.4
21.6
21.5
21.6
21.6
23.0
22.6
22.9
22.7
22.5
22.4
22.6
22.4
22.4
22.6
22.2
22.0
22.1
21.9
21.8
21.7
22.0
22.0
21.8
21.8
22.5
22.2
22.3
22.2
22.0
21.8
22.0
22.0
21.9
22.1
21.8
21.7
21.7
21.5
21.5
21.3
21.4
21.4
21.5
21.4
21.1
21.2
21.1
20.9
20.9
20.8
20.8
21.0
21.0
21.0
Comparison by Course - Davis District
23.5
23.0
22.5
22.0
21.5
21.0
20.5
1999
2000
2001
2002
2003
English
2004
Math
2005
Reading
2006
2007
2008
2007
2008
Science
Composite Score Comparison
23.5
23.0
22.5
22.0
21.5
21.0
20.5
1999
2000
2001
2002
2003
Davis
2004
State
2005
2006
Nation
75% of seniors in the District take the American College Test (ACT) as their college
entrance requirement. The ACT has measured the impact of students who prepare
for success. Students taking a rigorous basic curriculum score significantly higher
than those who complete minimum requirements.
- 86 -
DAVIS SCHOOL DISTRICT
Advanced Placement Exam Results
Years Ended June 30, 1999 to 2008
The score scale is 1-5.
Scores of 3, 4, or 5 are "Passing".
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
942
998
952
942
940
914
807
787
704
688
2
3
2
2
4
17
18
17
26
32
English
1,002
942
928
987
1,044
949
901
910
900
919
Science
378
366
390
331
317
330
281
384
405
492
1,308
1,481
1,574
1,304
1,336
1,292
1,203
1,172
1,152
1,167
250
261
286
240
218
169
180
140
162
178
15
26
15
20
46
27
28
28
17
26
3,897
4,077
4,147
3,826
3,905
3,698
3,418
3,438
3,366
3,502
Exams Passed
2,767
3,047
3,030
2,792
2,785
2,664
2,559
2,534
2,433
2,545
PERCENTAGE PASSING
71.00%
74.74%
73.06%
72.97%
71.32%
72.04%
74.87%
73.71%
72.28%
72.67%
Mathematics
Computer Science
Social Studies
Fine Arts
Foreign Languages
Total Exams Attempted
Advanced Placement Exams Attempted and Passed
4,500
Total # of Exams
4,000
3,500
3,000
2,500
2,000
1,500
2008
2007
2006
2005
2004
Total Exams Attempted
2003
2002
2001
2000
1999
Exams Passed
All District high schools offer advanced placement classes to college-bound students. These classes are
college-level courses. Each test successfully passed is worth 12 hours of college credit. There was an
1.7% decrease in the number of exams taken, yet there was a .5% increase in the number of exams
passed compared to the previous year. One of the District's goals is to maximize the number of students
who will successfully complete these courses and accumulate college credit, and the trend lines indicate
real success in this effort.
- 87 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 88 -
DAVIS SCHOOL DISTRICT
SINGLE AUDIT AND STATE OF UTAH
LEGAL COMPLIANCE REPORTS
Year Ended June 30, 2008
TABLE OF CONTENTS
Page
Schedule of Expenditures of Federal Awards
1
Notes to Schedule of Expenditures of Federal Awards
2
Independent Auditor’s Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
3
Independent Auditor's Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control over Compliance in Accordance
with OMB Circular A-133
5
Summary Schedule of Prior Audit Findings
7
Schedule of Findings and Questioned Costs
8
Independent Auditor’s Report on Legal Compliance in Accordance with
the State of Utah Legal Compliance Audit Guide
9
Letter to Management
11
DAVIS SCHOOL DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2008
Federal Grantor/Pass Through Grantor/Program Title
CFDA
Number
USOE
Revenue
Code
District's
Program
Number
U.S. DEPARTMENT OF AGRICULTURE:
Passed Through Utah State Office of Education:
Food Donation
School Breakfast Program
National School Lunch Program
Special Milk Program for Children
Child and Adult Care Food Program
Summer Food Service Program for Children
Fresh Fruit and Vegetable Program
10.550
10.553
10.555
10.556
10.558
10.559
10.582
44
42/43
41
47
48
51
8000
8000
8000
8000
7365
8000
8000
U.S. DEPARTMENT OF DEFENSE:
Direct Programs:
National Flagship Language Program Grants to U.S.
Institutions of Higher Education
U.S. DEPARTMENT OF EDUCATION:
Direct Programs:
Impact Aid
Indian Education - Grants to Local Educational Agencies
JAVITS Gifted and Talented Students Education Grant
Program
Fund for the Improvement of Education
Passed Through Utah State Office of Education:
Adult Education - State Grant Program
Title I Grants to Local Educational Agencies
Migrant Education - State Grant Program
Title I Program for Neglected and Delinquent Children
Special Education - Grants to States
Career and Technical Education Basic Grants to States
Special Education - Preschool Grants
Safe and Drug-Free Schools and Communities State Grants
Education for Homeless Children and Youth
Tech-Prep Education
Twenty-First Century Community Learning Centers
State Grants for Innovative Programs
Education Technology State Grants
Advanced Placement Progam
Comprehensive School Reform Demonstration
Reading First State Grants
English Language Acquisition Grant
Improving Teacher Quality State Grants
Hurricane Education Recovery
Passed Through Weber State University:
Special Education - Grants for Infants and Families
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES:
Passed Through Utah State Department of Health:
Maternal and Child Health
Passed Through State Office of Education:
Child Care and Development Block Grant
Based Programs
Direct Programs:
Head Start
(Deferral)
Receivable
June 30, 2007
$
18,621
81,281
139,998
-
Received
$
1,387,387
1,262,927
5,823,296
1,527
52,385
257,625
18,211
Expended
$
1,387,387
1,260,822
5,811,287
1,527
52,586
266,404
18,211
(Deferral)
Receivable
June 30, 2008
$
16,516
69,272
201
148,777
-
239,900
8,803,358
8,798,224
234,766
12.550
7326
13,868
159,351
164,483
19,000
84.041
84.060
0015
7322
9,797
1,133,093
96,404
1,133,093
95,620
9,013
84.206
84.215
7373
7358/7374/7375/7372
21,440
202,033
105,520
1,391,158
101,685
1,330,599
17,605
141,474
84.002
84.010
84.011
84.013
84.027
33
08
15
13
19
1610
5202/7511
7548
7511
1200/1290/7551/7556
764,933
63,779
3,587,813
228,355
4,455,415
91,979
34,000
8,701,140
228,355
4,130,788
75,857
34,000
10,242,351
440,306
47,657
5,129,024
84.048
84.173
21
52
6900/6910/6938/8933
1290
614,462
138,798
614,462
297,671
655,652
318,679
655,652
159,806
84.186
84.196
84.243
84.287
84.298
84.318
84.330
84.332
84.357
84.365
84.367
84.938
09
28
26
60
90
07
89
27
72
73
74
92
5520/7602
5272
6910/8933
7654/7365
7512
5820/5821
8940
7659/8955
7543
7628
5238/7626
7511
14,990
30,000
152,773
451,096
11,394
16,897
20,000
279,835
109,526
229,239
326
14,990
60,000
152,773
567,255
101,389
16,897
20,000
336,222
18,697
115,884
1,435,335
326
145,710
30,000
7,404
319,988
89,995
48,577
56,387
18,697
199,970
1,522,236
-
145,710
7,404
203,829
48,577
193,612
316,140
-
84.181
1299
180,301
420,268
341,419
101,452
6,899,432
20,409,233
21,127,062
7,617,261
93.110
1293
-
93.575
5655
-
93.600
7314/7320
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE:
Passed Through Utah State Office of Education:
Learn and Serve America - School and Community
Based Programs
94.004
53
6907
Total federal awards
-1-
26,846
-
73,245
126,800
53,555
532,701
3,764,320
3,772,974
541,354
532,701
3,864,411
3,926,620
594,909
3,000
$
The accompanying notes are and integral part of this schedule.
26,846
7,688,901
3,000
$
33,239,353
$
34,016,389
$
8,465,936
DAVIS SCHOOL DISTRICT
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Note 1.
General
The schedule of expenditures of federal awards presents the activity of all federal award
programs of Davis School District (District). The District reporting entity is defined in
Note 1 to the District's financial statements. All federal awards received directly from
federal agencies as well as federal awards passed through from other government agencies
are included on the schedule.
Note 2.
Basis of Accounting
The accompanying schedule of expenditures of federal awards is presented using the
modified accrual basis of accounting for awards received by governmental funds and the
accrual basis of accounting for proprietary funds as described in Note 1 to the District's
financial statements.
Most of the federal awards are expenditure-driven grants. Expenditure-driven grants are
recognized as revenue when the qualifying expenditures have been incurred and all other
grant requirements have been met; grants received in advance are recorded as deferred
revenue until earned. Donated food commodities are recorded at fair value in the School
Food Services Fund as an inventory asset and federal revenue when received. Donated food
commodity inventories are recorded as expenses/expenditures when they are transferred to
schools for consumption.
Note 3.
Relationship to District's Financial Statements
Federal awards expended on the schedule of expenditures of federal awards for the year
ended June 30, 2008 are reported in the District's financial statements as federal government
revenues as follows:
General Fund (Governmental Fund)
School Food Services Fund (Proprietary Fund)
State Multi-District Programs Fund (Special Revenue Fund)
$
Total amount reported in the financial statements
35,068,404
Service provider contracts not included on schedule
Total federal revenue reported on the Schedule
of Expenditures of Federal Awards (SEFA)
-2-
26,271,524
8,745,638
51,242
(1,052,015)
$
34,016,389
1329 South 800 East
·
Orem, Utah 84097-7700
·
(801) 225-6900
·
Fax (801) 226-7739
·
www.squire.com
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Board of Education
Davis School District
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, the discretely presented component unit, and the remaining fund information of Davis
School District (the District) as of and for the year ended June 30, 2008, which collectively comprise the
District’s basic financial statements and have issued our report thereon dated November 28, 2008. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
District’s internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the District’s internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects an entity’s ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the entity’s financial statements that is more
than inconsequential will not be prevented or detected by the entity’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by an entity’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
-3-
We noted certain matters that we have reported to management of the District in a separate letter dated
November 28, 2008.
This report is intended solely for the information and use of the audit committee, management, the
Board, federal awarding agencies, and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
November 28, 2008
-4-
1329 South 800 East
·
Orem, Utah 84097-7700
·
(801) 225-6900
·
Fax (801) 226-7739
·
www.squire.com
Independent Auditor’s Report on Compliance With
Requirements Applicable to Each Major Program and Internal
Control over Compliance in Accordance with OMB Circular A-133
Board of Education
Davis School District
Compliance
We have audited the compliance of Davis School District (the District) with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
June 30, 2008. The District’s major federal programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs
is the responsibility of the District’s management. Our responsibility is to express an opinion on the
District’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
District's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination on the District’s compliance with those requirements.
In our opinion, Davis School District complied, in all material respects, with the requirements referred
to above that are applicable to each of its major federal programs for the year ended June 30, 2008.
Internal Control Over Compliance
Management of the District is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the District's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the District’s internal over
compliance.
A control deficiency in an entity’s internal control over compliance exists when the design or operation
of a control does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a
federal program on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to administer a federal program such that
there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
-5-
federal program that is more than inconsequential will not be prevented or detected by the entity’s
internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that material noncompliance with a type of compliance requirement of
a federal program will not be prevented or detected by the entity’s internal control.
Our consideration of the internal control over compliance was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the remaining fund information of Davis
School District, as of and for the year ended June 30, 2008, and have issued our report thereon dated
November 28, 2008. Our audit was performed for the purpose of forming our opinions on the financial
statements that collectively comprise Davis School District’s basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
This report is intended solely for the information and use of the audit committee, management, the
Board, federal awarding agencies, and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
November 28, 2008
-6-
DAVIS SCHOOL DISTRICT
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2008
DEPARTMENT OF EDUCATION
FINDING 2005-1: Title I Grants to Local Educational Agencies - CFDA No. 84.010 – US
Department of Education program passed through to the District from the Utah State Office of
Education:
Condition: The District is required to establish adequate internal controls over federal
programs, including safeguarding funds against loss from unauthorized use or disposition.
During the year ended June 30, 2005, the District brought to our attention that certain
controls may have been circumvented; the potential problem was isolated to many small
purchases within the Title I program.
Recommendation: It was recommended that purchasing policies and procedures be updated
to ensure proper approval of transactions, segregation of duties, supervisory review of
vendor activities, and validation of goods received. Management has updated and
implemented new purchasing policies and procedures as recommended.
Current Status: The finding was reported directly to the pass-through grantor agency (Utah
State Office of Education); the matter remains unresolved.
-7-
DAVIS SCHOOL DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2008
I.
Summary of auditor’s results:
Financial Statements:
Type of auditor’s report issued:
unqualified
Internal control over financial reporting:
yes
-Material weaknesses identified?
X no
-Significant deficiencies identified that are not considered to be material weaknesses?
yes
X none reported
Noncompliance material to financial statements noted?
yes
Federal Awards:
X no
Internal control over major programs:
yes
-Material weaknesses identified?
X no
-Significant deficiencies identified that are not considered to be material weaknesses?
yes
X none reported
Type of auditor’s report issued on compliance for major programs: unqualified
Any audit findings disclosed that are required to be reported in accordance with section 510(a) of
yes
X no
Circular A-133?
Identification of major programs:
CFDA Number(s)
Name of Federal Program
84.010
Title I Grants to Local Educational Agencies
84.041
Impact Aid
84.048
Career and Technical Education – Basic Grants to States
84.181
Special Education – Grants for Infants and Families
84.215
Fund for the Improvement of Education
Special Education Cluster:
84.027
Special Education – Grants to States
84.173
Special Education – Preschool Grants
Dollar threshold used to distinguish between type A and type B programs:
yes
Auditee qualified as low-risk auditee?
II. Financial statement findings:
No matters were reported.
III. Federal award findings and questioned costs:
No matters were reported.
-8-
X no
$ 1,020,492
1329 South 800 East
·
Orem, Utah 84097-7700
·
(801) 225-6900
·
Fax (801) 226-7739
·
www.squire.com
Independent Auditor’s Report on Legal Compliance in
Accordance with the State of Utah Legal Compliance Audit Guide
Board of Education
Davis School District
We have audited the financial statements of Davis School District (District) as of and for the year ended
June 30, 2008 and have issued our report thereon dated November 28, 2008. As part of our audit, we
have audited the District's compliance with the requirements governing types of services allowed or
unallowed; eligibility; matching, level of effort, or earmarking; and special tests and provisions
applicable to each of its major state assistance programs as required by the State of Utah Legal
Compliance Audit Guide for the year ended June 30, 2008. The District received the following major
state assistance programs from the State of Utah (each passed through the State Office of Education):
Minimum School Program
School Building Program
Driver Education
Other State Appropriations
The District also received nonmajor state grants, which are not required to be audited for specific
compliance requirements; however, these grants were subject to test work as part of the audit of the
District’s financial statements.
Our audit also included test work on the District's compliance with those general compliance
requirements identified in the State of Utah Legal Compliance Audit Guide including:
Public Debt
Purchasing Requirements
Truth in Taxation and Property Tax Limitations
Utah Retirement System Compliance
Cash Management
Budgetary Compliance
Other General Compliance Issues
The management of the District is responsible for the District's compliance with all compliance
requirements identified above. Our responsibility is to express an opinion on compliance with those
requirements 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 material noncompliance with the
requirements referred to above occurred. An audit includes examining, on a test basis, evidence about
the District's compliance with those requirements. We believe that our audit provides a reasonable basis
for our opinion.
The results of our audit procedures disclosed instances of noncompliance with requirements referred to
above, which are described in the accompanying letter to management. We considered these instances
of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.
-9-
In our opinion, Davis School District complied, in all material respects, with the general compliance
requirements identified above and the requirements governing types of services allowed or unallowed;
eligibility; matching, level of effort, or earmarking; reporting; and special tests and provisions that are
applicable to each of its major state assistance programs for the year ended June 30, 2008.
November 28, 2008
-10-
1329 South 800 East
·
Orem, Utah 84097-7700
·
(801) 225-6900
·
Fax (801) 226-7739
·
www.squire.com
Letter to Management
November 28, 2008
Board of Education
Davis School District
In planning and performing our audit of the financial statements of Davis School District for the year
ended June 30, 2008, we noted certain matters for your consideration. This letter summarizes our
comments and suggestions regarding those matters. This letter does not affect our report dated
November 28, 2008, on the financial statements of the District. Also, significant deficiencies and
material weaknesses, if any, are included in our reports dated November 28, 2008, in accordance with
Government Auditing Standards; the provisions of Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations; and the State of Utah Legal
Compliance Audit Guide.
Purchasing – We tested 30 purchasing transactions during the year ended June 30, 2008. We observed
that certain purchasing practices may need to be modified or established policies should be more closely
followed:
Purchase orders should be prepared as part of the approval process and prior to ordering and
receiving the applicable goods and services. In six instances, we noted the purchase order being
prepared after the purchasing process was complete.
Exceptions to purchasing policies should be carefully evaluated and decisions should be
documented. We noted that one instance occurred where no bid documentation was available.
Views of Responsible Officials – District Purchasing Policy requires approval of a purchase
order for all purchases over a dollar threshold. Purchases under that threshold are made using
approved purchasing cards. The District is implementing procedures to more closely monitor
purchases made without an approved purchase order, and to take corrective action with District
schools and departments as well as with vendors who accept orders without a purchase order
number. The District is also revising the Purchasing Policy to more clearly define the process
of granting exceptions to the policy.
Certifications – We noted that formal certifications as required by OMB Circular A-87 to support
allocation of payroll costs to restricted federal programs are not always adequately documented. We
recommend that monthly certifications be obtained for individuals who work in more than one program
and when at least one of the programs is federal. We also recommend that semi-annual certifications be
obtained for employees that work in one federal program.
Views of Responsible Officials – The District is establishing procedures to more closely monitor
adherence to the formal certification requirements of OMB Circular A-87. The District Finance
Department will take a more active role in helping departments and schools to complete
certifications as required.
-11-
The status of these comments will be reviewed as part of your next audit. We recommend management
establish monitoring policies and procedures to provide the District with reasonable assurance that the
District complies with various state and federal program requirements. Monitoring includes ongoing
evaluations, recommendations for improvement, timely response to necessary changes, and periodic
reports to management and the Board.
We appreciate being able to work with District personnel during our audit.
Squire & Company, PC
-12-