1. education
2. school

RULE 15c2-12 FILING COVER SHEET
This cover sheet is sent with all submissions to the Municipal Securities Rulemaking Board (the
Nationally Recognized Municipal Securities Information Repository) and any applicable State
Information Depository pursuant to Securities and Exchange Commission (SEC) Rule 15c2-12 or any
analogous state statute.
Issuer Name: Chariho Regional School District, Rhode Island
Issue(s):
$
$
$
12,575,000 Rhode Island Health and Educational Building Corporation, Qualified School
Construction Bonds, Series 2010A
13,465,000 Rhode Island Health & Educational Building Corporation - Qualified School
Construction Bonds, Series 2010G
10,940,000 Rhode Island Health and Educational Building Corporation Revenue Bonds, Series
2011B
Filing Format X electronic ___ paper; If available on the Internet, give URL:_______________
CUSIP Numbers to which the information filed relates (optional):
X Nine-digit number(s) (see following page(s)):
___ Six-digit number if information filed relates to all securities of the issuer
* * *
Financial & Operating Data Disclosure Information
X Annual Financial Report or CAFR
X Financial Information & Operating Data
___ Other (describe)
X Fiscal Period Covered: FYE 2011
___ Monthly ___ Quarterly X Annual ___Other:
* * *
I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly:
Signature: /s/ Brian Stanley
Name:
Brian Stanley
Title:Director of Administration
Employer: Chariho Regional School District, Rhode Island
Voice Telephone Number: (401) 364-3260
Email Address:
[email protected]
DESCRIPTION OF ISSUES COVERED BY THIS REPORT
Rhode Island Health and Educational Building Corporation, Qualified School Construction Bonds, Series
2010A
Date
Principal
CUSIP
05/15/27
$
12,575,000
762243X81
$
12,575,000
Rhode Island Health & Educational Building Corporation - Qualified School Construction Bonds, Series
2010G
Date
Principal
CUSIP
05/15/27
$
13,465,000
762243Y23
$
13,465,000
Rhode Island Health and Educational Building Corporation Revenue Bonds, Series 2011B
Date
05/15/12
05/15/13
05/15/14
05/15/15
05/15/16
05/15/17
05/15/18
05/15/19
05/15/20
05/15/21
05/15/26
05/15/31
$
$
Principal
425,000
385,000
390,000
405,000
415,000
435,000
450,000
465,000
480,000
500,000
2,895,000
3,695,000
10,940,000
CUSIP
7622432L6
7622432M4
7622432N2
7622432P7
7622432Q5
7622432R3
7622432S1
7622432T9
7622432U6
7622432V4
7622432W2
7622432X0
ONTINUING
ISCAL
ISCLOSURE EPORT
OR HE
EAR NDED UNE
EDUCATION REVENUE DEBT
FINANCIAL STATEMENTS
The audited financial statements for the College for the fiscal year ended June 30, 2011 are being
separately filed directly with the Nationally Recognized Municipal Securities Information Repository
and any applicable State Information Depository, and are hereby incorporated by reference into this
Annual Continuing Disclosure Report.
SIGNATURE OF ISSUER
The information set forth herein has been obtained from the College and other sources believed to be
reliable, but such information is not guaranteed as to accuracy or completeness and is not to be
construed as a promise or guarantee. This Annual Continuing Disclosure Report may contain, in part,
estimates and matters of opinion which are not intended as statements of fact, and no representation is
made as to the correctness of such estimates and opinions, or that they will be realized. The
information and expressions of opinion contained herein are subject to change without notice, and the
delivery of this Annual Continuing Disclosure Report will not, under any circumstances, create any
implication that there has been no change in the affairs of the College or other matters described.
CHARIHO REGIONAL SCHOOL DISTRICT, RHODE ISLAND
/s/ Brian Stanley
Brian Stanley
Director of Administration
Approved for Submission:
03/23/2012
Date
CERTIFICATE OF SUBMISSION OF ANNUAL REPORT
Subject to the continuing disclosure requirements of SEC Rule 15c2-12, this Annual Continuing
Disclosure Report for the Chariho Regional School District, Rhode Island with respect to the issues
listed on the report cover was submitted directly to the National Recognized Municipal Securities
Information Repository (“NRMSIR”) listed below as well as to any applicable State Information
Depository (“SID”).
NRMSIR
Municipal Securities Rulemaking Board ("MSRB")
via the Electronic Municipal Market Access ("EMMA") system
First Southwest Company
Signed by:
/s/ Adam Krea
THE DISTRICT
General
The Chariho Regional School District (the “District”) (formerly the Chariho Regional High School District) was
established under Chapter 55 of the 1958 Rhode Island Public Laws which authorized the Towns of Charlestown, Richmond
and Hopkinton to incorporate a regional school district. This encompassed grades 7-12. Under Chapter 286 of the 1986
Rhode Island Public Laws (together with Chapter 55 of the 1958 Rhode Island Public Laws, the “District Enabling
Legislation”, the original act was amended to authorize the Towns of Charlestown, Richmond, and Hopkinton to join a
regional school district incorporating grades K-12. In accordance with such authorization, effective July 1, 1988, the
District provides all public education services for grades K-12 in the three member Towns. The District facilities consist of
four elementary schools (grades K-4), one middle school (grades 5-8), one alternative learning school (grades 2-12) and one
high school (grades 9-12). The District provides Pre-K classes in two of the four elementary schools
The District is located in southern Rhode Island. Lying in part on the Connecticut border, the District’s three
member towns are otherwise surrounded by the Towns of South Kingstown and Exeter to the northeast and Westerly to the
west. The District encompasses 126 square miles, including 6.2 square miles of inland water and six miles of coastline
beaches on Block Island Sound.
School Committee and Related Committees
The Regional School Committee (the “Committee”) consists of eleven (11) members. Each member Town is
represented on the Committee in direct proportion to its population as determined by the most recent population census
figures.
The members of the Committee of each member Town are elected for a term of four years. The members, their
respective Towns and terms are set forth below:
Committee Member
Amanda Blau
Deborah Carney
Michelle Cole, Vice Chair
William Day
Gregory Kenney, Chair
Andrew McQuaide
Craig Louzon
Robert Cardozo
James Sullivan
Georgia Ure
Dorothy Gardiner
Town
Hopkinton
Charlestown
Richmond
Richmond
Hopkinton
Charlestown
Charlestown
Richmond
Charlestown
Hopkinton
Hopkinton
Term Expires
November 2014
November 2012
November 2012
November 2012
November 2014
November 2014
November 2014
November 2014
November 2014
November 2014
November 2012
*Four year term expires during the month of November.
The Committee is assisted on an advisory basis by a regional school district finance committee consisting of the
District Treasurer, the Treasurers of the member towns, one Committee member from each Town, and a resident from each
Town. A regional school district building committee supervises all phases of the design and construction of the District
projects.
Security for District Obligations
The District issues bonds and notes to finance capital projects. The District has no taxing power. To the extent not
paid from other sources, the District’s general obligations will be payable as to both principal and interest from sums which
are annually apportioned to and appropriated by the member Towns of Charlestown, Richmond, and Hopkinton. See
“District Enabling Legislation” herein for a description of the procedure for the adoption of the annual District budget and
the apportionment of debt service costs to the respective member Towns. No member Town may withdraw from the
District until all bonded indebtedness has been fully paid and discharged. No member Town is liable for payment of
sums apportioned to and assessed upon any other member Town. To the extent that the sums apportioned to the
1
member Towns are not paid when due, the District through its Treasurer, has the power to borrow in anticipation of any and
all unpaid assessments.
The District Enabling Legislation provides that the District shall annually appropriate a sum sufficient to pay
principal and interest on any bonds maturing in any year until the bonds and the interest thereon are paid in full.
Under the District Enabling Legislation, each member Town will pay debt service based upon its share of
construction costs determined annually by dividing the enrollment of students from the member Town by the total number
of students enrolled in the District on October 1 of the current school year.
The Legislation provides that each member Town shall appropriate and raise sufficient monies to meet its allocable
share of the District’s construction and operational costs, including payment of debt service on the District’s bonds and
notes.
The enforceability of rights or remedies with respect to the Districts bonds or notes or with respect to the
obligation of the Towns under the District Enabling Legislation may be limited by bankruptcy, insolvency, reorganization,
moratorium, or other laws affecting creditors’ rights or remedies heretofore or hereafter enacted and by the availability of
equitable remedies.
District Enabling Legislation
The District Enabling Legislation established an annual budget process (see “Budgetary Procedures” herein). The
amount of the budget, after deducting estimated receipts, will be apportioned to the member Towns in accordance with the
District Enabling Legislation. A summary of the apportionment procedures follows:
Apportioned Cost Billing and Payment
Within ten (10) days after the date at which the annual District budget is approved by referendum each year, the
District Treasurer will determine the total costs of operating the District and cost of construction planned for the next budget
year. This sum shall then be divided by the number of students enrolled in the District as of October 1 of the previous
calendar year (current school year) and the resulting figure shall then be determined as the annual pupil charge.
The charge will be certified each year by the District Treasurer to the respective Town Treasurers of each member
Town. Each member Town shall then pay, on a monthly basis, the proportioned operating and construction costs, based on
the number of pupils enrolled in the District from that Town, multiplied by the annual pupil charge.
The table below indicates that in fiscal year 2012 Charlestown, Hopkinton and Richmond will apportion
approximately 28.43%, 35.73% and 35.84% of such costs, respectively, based upon the enrollments as of October 1, 2010.
Fiscal Year 2011 District Enrollments
Grades PreK-4
5-8
9-12
TOTAL
PERCENT OF TOTAL
Char lestown
364
320
333
1,017
Hopkinton
456
384
438
1,278
Richmond
487
387
408
1,282
28.43%
35.73%
35.84%
Total
1,307
1,091
1,179
3,577
%
36.54%
30.50%
32.96%
For the purpose of apportioning assessments levied by the District against the member Towns, costs are divided
into two categories, construction and operating.
Construction Costs
Construction costs shall be all costs of retirement of principal or payment of interest on bonds or notes or such
costs as may be financed by means other than the issue of bonds or notes for the purpose of construction or renovation of
buildings, land acquisitions, or extraordinary repairs to buildings.
2
Construction costs shall be borne by each member Town in the same proportion as the enrollment of students from
that Town bears to the total student enrollment of the District. The District Treasurer annually shall determine the share of
each member Town of construction costs by dividing the construction costs for the current year of operation by the number
of pupils enrolled in the District on October 1 of the current school year.
The amount of construction costs certified by the District Treasurer to the Town Treasurers of the member Towns
shall be deemed an indebtedness of the Town for which a member Town may assess its ratable property in any one year in
excess of three and one-half percent of its ratable value. However, any and all bonds or notes shall not be construed at any
time to form a part of the debt of any individual town which is a member of the District for the purpose of ascertaining the
borrowing capacity of such Town. No member Town shall withdraw from the District until bonded indebtedness incurred
by this and previous offerings has been fully paid and discharged.
However, special legislation (2008 Public Laws 428/436 and 430/435) was approved by the General Assembly
authorizing the District to issue bonds in the amount of up to $20,553,000 in the aggregate for the purpose of financing
school construction and renovation projects. Pursuant to such special legislation, repayment of debt service relating to any
bonds issued thereunder will be paid by the member towns in equal installments and not based on student enrollment. This
issue of Bonds will be paid by the member towns in equal installments and not based on student enrollment.
Operating Costs
Operating costs shall include all costs of the District not included in the construction costs noted above paid out of
the receipts and realizations of the sale of bonds or notes or financed by means other than the issue of bonds or notes.
Operating costs for each fiscal year or portion thereof shall be apportioned among the member Towns in
proportion to the relationship of their respective pupil enrollment in the District on October 1 of the previous calendar year
to the total pupil enrollment in the District at that time.
Apportionment of Operating Costs to Member Towns
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY 2012
Charlestown
1,103
28.57%
1,075
28.17%
1,058
28.24%
1,051
28.15%
1,044
28.52%
1,024
28.37%
1,017
28.43%
Richmond
1,362
35.27%
1,396
36.16%
1,377
36.09%
1,364
35.74%
1,345
35.91%
1,343
35.85%
1,345
36.03%
1,337
35.82%
1,303
35.59%
1,314
35.89%
1,263
35.00%
1,322
36.63%
1,282
35.84%
1,278
35.73%
Hopkinton
Tuition Students
The Committee accepts students who live outside of the three member towns on a tuition basis at the State owned
Career and Technical Center for enrollment in the District. Such students are principally from the Towns of Narragansett,
South Kingstown and Westerly. The tuition is paid by the students’ district to offset costs.
District Employees
All certified teaching personnel of the present District, excluding the Superintendent, Assistant Superintendent,
Principals, and Assistant Principals and Directors are represented by National Education Association – Chariho. The
contract agreement expires August 31, 2012 and the District is currently in negotiations.
All support staff personnel of the present District are represented by National Education Association - Chariho.
The contract agreement expires June 30, 2011 and the District is currently in negotiations.
3
Below is the District personnel staffing as of the 2011-12 school year.
Classification
Administrators
Teachers
Teacher Aides
Support Staff
TOTAL
Number of
Positions (FTE)
24.4
339.3
87.0
71.0
521.7
District Enrollment Trends
The table below displays the enrollment history for the District (excluding out of District vocational school
students) for the current year and the past four years.
School Year
2007-08
2008-09
2009-10
2010-11
2011-12
Charlestown
1,051
1,044
1,024
1,017
1,022
Hopkinton
1,337
1,314
1,322
1,278
1,272
Richmond
1,345
1,303
1,263
1,282
1,244
Distr ict
Total
3,733
3,661
3,609
3,577
3,538
Set forth below are the District’s enrollment projections (includes out of District vocational school students) for the school
years 2012-13 through 2016-17.
School Year
Students
2012-13……………..3,586
2013-14……………..3,526
2014-15……………..3,514
2015-16……………..3,498
2016-17……………..3,485
DISTRICT FINANCES
Financial Reporting
The District prepares its governmental funds and fiduciary funds on an accrual basis of accounting. Under this
method, revenues are recorded when earned and available to finance current period expenditures. Expenditures are
recorded when the liability is incurred, except for compensated absences, which are recorded in the year they are liquidated
through expendable available resources. The District operates on a fiscal year of July 1 through June 30.
All governmental and fiduciary funds treat the acquisition of property, plant and equipment as current
expenditures. The District records general property and equipment in the general fixed assets account group only in the
Proprietary Funds.
The District’s financial statements for the year ended June 30, 2009 have been audited by Braver PC, Certified
Public Accountants. The financial statements for the fiscal year ended June 30, 2009 for the District and its member towns
are on file with the Municipal Securities Rulemaking Board and can be accessed at http://emma.msrb.org.
The following types of funds are used by the District in accounting for its financial activities:
1) General Fund
The General Fund accounts for all financial transactions applicable to the general operations of the District.
Revenues are derived principally from contributions by member Towns and for tuitions.
4
2) Special Revenue Fund
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or
administratively restricted to expenditures for certain purposes.
3) Agency Fund
Agency funds account for assets held by the District in a purely custodial capacity. The reporting entity includes one
Agency Fund. The Agency Fund is the Student Activity Fund.
4) Capital Projects Fund
The Capital Projects Fund is used to account for resources restricted for the acquisition or construction of specific
capital projects or items.
5) Proprietary Fund
The Proprietary Fund is used to account for business-like activities provided to the general public. These activities
are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar
to the private sector. The Proprietary Fund is the School Lunch Fund.
6) Debt Service Fund
The Debt Service Fund accounts for the payment of principal and interest on the District’s long-term obligations.
Budgetary Procedures
The District superintendent, or chief administrative officer, presents to the Regional School Committee a
preliminary budget containing estimates of the amount of money needed to operate the District for the ensuing year. The
Regional School Committee shall prepare and approve the proposed budget which it believes will efficiently operate the
District for the ensuing year not later than the fifteenth (15th) day of February in each year. Not later than the third (3rd)
Tuesday in March in each year, and subsequent to the public hearing at the annual District meeting on the proposed budget,
the Regional School Committee shall adopt a final proposed budget.
Within thirty (30) days after the Regional School Committee adopts its final proposed budget for the ensuing year,
a budget approval referendum must be held in each of the member towns on a single day to be determined by the Regional
School Committee. The vote at referendum shall be for the purpose of approving or rejecting the overall total district
budget as proposed by the Regional School Committee, and for approving or rejecting any special warrant items proposed
by the Regional School Committee.
A majority of all of the votes cast in the member towns at the budget approval referendum, counted in the
aggregate, shall be required to approve the annual regional school district budget proposed by the Regional School
Committee. If the voters do not approve the budget proposed by Regional School Committee at the budget approval
referendum vote, the Regional School Committee shall hold a School Committee meeting with fifteen (15) days after the
referendum to adopt a revised budget in such an amount as the Regional School Committee shall determine to be the
minimum amount necessary to allow the District to operate for the ensuing fiscal year in compliance with its contractual
obligations and the mandates of applicable federal and state laws. Any revised budget adopted at the subsequent school
committee meeting must thereafter be submitted within thirty (30) days to the voters for approval at referendum in
accordance with this section. This process shall be repeated until a budget is adopted by the Regional School Committee
and approved by the voters at referendum. If, however, a budget is not adopted by the Regional School Committee and
approved by the voters before July 1 of each year, then the Regional School Committee shall operate the District in
accordance with the provisions of Section 16-2-23 of the Rhode Island General Laws, and the member towns shall make
payments to the District, based upon the amounts appropriated for the support of the schools by the member towns in the
preceding fiscal year.
5
Set forth below is the District's General Fund Adopted and Approved Budgets for
2012.
FY 2010
FY 2011
Budget
Budget
Revenues:
Charlestown - Local appropriation
$13,978,003
$14,065,071
Richmond - Local appropriation
17,443,098
17,303,309
Hopkinton - Local appropriation
17,590,131
18,099,437
Revenue
4,062,252
3,153,892
Total revenues
$53,073,484
$52,621,709
Expenditures:
Instruction
Instruction Support
Operations
Non-Operating Commitments
Leadership
Fixed Charges
Debt Service
Capital
$20,120,441
7,622,996
7,188,256
2,830,079
2,576,910
11,408,838
-01,325,964
$53,073,484
$20,576,624
7,658,082
7,258,583
2,868,355
2,540,376
10,859,796
625,623
234,270
$52,621,709
___________________________
Prepared from District’s budgets.
DISTRICT INDEBTEDNESS
Outstanding Debt
Fiscal Year
Ended 6/30,
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Principal (1)
$ 960,563
920,563
925,563
940,563
950,563
970,563
985,563
1,000,563
1,015,563
1,035,563
1,060,563
1,085,563
1,115,563
1,140,563
1,170,563
1,205,563
700,000
735,000
775,000
815,000
Interest(2)
$ 489,350
518,961
511,261
499,561
487,411
470,811
453,411
439,911
421,311
403,911
378,911
352,661
325,161
296,161
265,911
234,161
151,250
116,250
79,500
40,750
Total
$ 1,449,913
1,439,524
1,436,824
1,440,124
1,437,974
1,441,374
1,438,974
1,440,474
1,436,874
1,439,474
1,439,474
1,438,224
1,440,724
1,436,724
1,436,474
1,439,724
851,250
851,250
854,500
855,750
Total
$ 19,509,000
$ 6,936,615
$ 26,445,615
(1) Includes annual sinking fund payment for the Series 2010 A & G
RIHEBC Qualified School Construction Bonds.
(2) Interest payment includes net interest on RIHEBC QSCB's (after
Federal Subsidy).
6
the fiscal years 2010, 2011 and
FY 2012
Budget
$14,378,520
18,098,080
18,042,864
3,794,207
$54,313,671
$22,946,307
6,804,377
7,135,636
3,089,558
2,479,818
11,433,779
322,974
101,222
$54,313,671
Temporary Financing
In order to provide funds for the construction or operating costs of the District, the District, through the
Committee, is authorized in any fiscal year to borrow temporarily in anticipation of funds to be received from the member
Towns by issuance of temporary notes of the District. The temporary notes shall be payable not later than one (1) year from
their date of issue. No such temporary notes are currently outstanding.
Authorized but Unissued Debt
The following table sets forth information relating to the District’s bond authorities by the District.
Bond
Anticipation
Notes
Original
Remaining
Chapter
Year
Description
Authority
Bonds Issued
Outstanding
Authority
P.L. 428/436
2008
School Improvements
$ 2,706,000
$ 2,706,000
$
—0—
$
—0—
P.L. 430/435
2008
School Improvements
$17,847,000
16,803,000
—0—
1,044,000
RETIREMENT PLANS
Municipal Employees’ Retirement System
All employees except teachers and other certified personnel participate in the Municipal Employees’ Retirement
System (“MERS”), a statutory, mandatory, state-wide multi-employer retirement system which first covered Rhode Island
teachers on July 1, 1949. MERS is administered as a unified statewide system by the State Retirement Board. The assets
are held in the custody of the State Treasurer as an undivided single fund. Employees are required to contribute 7% of their
salary. The payroll for employees covered by the system for the period ended June 30, 2011 was $5,242,887 as compared
to the District’s total payroll of $32,228,615.
In November 2011, the State legislature passed the Rhode Island Retirement Security Act of 2011 (H-6319 and S1111) (the “Act”) to reform state and local pension systems. The Act suspends new cost-of-living adjustments to retirees’
benefits until the system is better funded but provides for an intermittment COLA every five years until 80% funded,
increases minimum retirement age for most employees not already eligible to retire, and makes other changes to the pension
plans in MERS.
With respect to MERS, Gabriel, Roeder, Smith & Company, independent actuaries advising MERS have
calculated the pension plan to be fully funded by 2029. Over the last six years, the District has made the following required
contributions:
Fiscal Year
2011
2010
2009
2008
2007
2006
Municipal Employees' Retirement S ystem (MERS )
Annual
Required
Actual
Percent
Unfunded
Funded
Pension Cost
Contribution
Contributed
Liability*
Ratio
$
500,844
$
500,844
100%
Not Available
538,727
538,727
100%
6,610,697
66%
567,790
567,790
100%
3,574,225
78%
474,940
474,940
100%
2,690,830
81%
439,075
439,075
100%
2,853,754
79%
247,003
247,003
100%
3,005,766
75%
*Assumes asset appreciation of 8.25% and payroll growth of 4.25% annually for fiscal years 20062009 and assumes asset appreciation of 7.50% and payroll growth of 3.75% annually for fiscal
years 2010-2011.
School Teachers Retirement Plan
The District provides retirement benefits to its public school teachers through its participation in the Employees’
Retirement System of Rhode Island (“ERSRI” or the “Teachers’ Retirement System”), a statutory, mandatory, statewide,
7
cost-sharing multi-employer defined benefit plan, which first covered State teachers on July 1, 1949. ERSRI is administered
as a unified statewide system by the State Retirement Board, the composition of which is set forth in the pertinent State
statute. The assets are held in the custody of the State Treasurer as an undivided single fund.
The actuarial costs of the retirement benefits are partially funded by employee contributions of 9.50% of the
actuarial costs of the retirement benefits effective July 1, 2003. The actuary determines the net employer actuarial costs
annually and as provided by the State Retirement Board to the Department of Administration. Contributions are reported as
a percent of payroll, payable in part by the State and in part by the District. The split between State and District is specified
in State statute. For fiscal year 2010-2011, the State paid 40 percent and the District paid 60 percent. Over the past six
years, the District has made the following required contributions:
Employees' Retirement S ystem of Rhode Island (Teachers)
Annual
Required
Actual
Percent
Contribution
Contributed
Fiscal Year Pension Cost
2011
$ 2,861,333
$
2,861,333
100%
2010
2,987,418
2,987,418
100%
2009
2,304,644
2,304,644
100%
2008
3,160,550
3,160,550
100%
2007
2,745,380
2,745,380
100%
2006
2,176,245
2,176,245
100%
The actuarial valuation prepared by Gabriel, Roeder, Smith & Company uses the entry age normal cost. The
valuation assumes an annual salary increase on a scale of age/service. In addition, other actuarial assumptions are made for
post-retirement increases and other contingencies as set forth in the published annual reports of the State Retirement Board.
The ERSRI does not maintain separate data for each of its participants. The ERSRI’s website contains additional
information (www.ersri.org).
The following are comparative highlights for 2006 through 2010 for the Teachers’ Retirement System as a whole:
Active Participants
Pensioners & Beneficiaries
Inactive Participants
Net Assets
6/30/2010
13,530
10,213
2,521
$ 3,196,511,775
6/30/2009
13,689
9,749
2,466
$ 2,962,026,384
6/30/2008
13,999
9,337
2,410
$ 3,857,373,705
6/30/2007
14,146
9,118
2,257
$ 4,185,381,396
6/30/2006
14,343
8,873
2,165
$ 3,623,938,636
Employer Contributions
M ember & Other M isc. Contributions
$ 178,122,248
94,117,458
$ 193,923,476
89,226,214
$ 205,368,390
94,867,773
$ 179,916,390
98,463,119
$ 143,066,186
80,190,420
$ 272,239,706
$ 283,149,690
$ 300,236,163
$ 278,379,509
$ 223,256,606
$
$
(765,400,473)
$
(240,377,537)
$
$
59,858,626
Total Contributions
M iscellaneous Income
Investment Income
Total Income Available for Benefit Payments
402,693,600
651,826,552
$ 674,933,306
$ (482,250,783)
$
Benefit Payment
$ (440,029,866)
$ (413,096,770)
$ (387,867,292)
$ (368,763,301)
$ (347,410,630)
Transfer and Other Adjustments
$
$
$
$
$
Excess of Income Over Expenses
$ 234,485,391
Funded Ratio
(418,049)
-
-
$ (895,347,553)
$ (328,008,666)
58.1%
61.8%
48.4%
$ 930,206,061
383,992,506
-
$ 561,442,760
57.5%
$ 607,249,112
-
$ 259,838,482
54.6%
Compiled from Employee Retirement System of Rhode Island - Annual Reports 2006-2010
Actuarial costs and liabilities, as shown in the summary presentation, are determined in the aggregate for the ERSRI.
Accordingly, employer contributions are first determined in the aggregate for all participating employers in this
multi-employer system and are then expressed as a percentage of the aggregate participating payroll. For fiscal year 2009,
the District applied 60 percent of this factor to its participating payroll (the remaining 40 percent of the employer cost is
contributed by the State as well as the full cost of deferred contributions by the State).
With respect to the ERSRI, Gabriel, Roeder, Smith & Company, independent actuaries advising the State
Retirement Board have calculated the pension plan to be fully funded by 2029.
8
According to the statutory funding schedule, the combined contributions required each year by the District and the
State will remain relatively level as a percent of payroll as the ERSRI moves toward funding the full actuarial liability.
Ultimately, however, because the actuarial funding results in the accumulation of reserves that are invested, the required
appropriation will be significantly less than would be required if the ERSRI were on a pay-as-you-go basis.
Other Post Employment Benefits
The District provides its workers with certain health care benefits after retirement sometimes called “other postemployment benefits” or “OPEBs.” Changes in accounting rules require the District to estimate its actuarial OPEB liability
and amortize the unfunded liability over thirty years beginning with fiscal year 2009. The District currently funds their
OPEB liability on a pay as you go basis. Over the past three years, the District has made the following contributions:
Other Postemployment Benefits
Fiscal Year
2011
2010
2009
Annual
Required
Contribution
$
165,068
165,832
245,900
Actual
Contribution
$
149,543
159,590
188,393
Percent
Contributed
91%
96%
77%
Unfunded
Liability
$ 1,715,539
1,715,539
2,018,516
Funded
Ratio
0%
0%
0%
Reporting Requirements of Municipalities and School Districts
In June 2003, the Rhode Island General Assembly passed new financial reporting requirements for municipalities
in order to ensure that municipalities and school districts monitor their financial operations on an ongoing basis and to
prevent potential budget deficits (Rhode Island General Law Sections 45-12-22.1 – 45-12-22.7 (the "Financial Reporting
Act")).
Reporting
•
The chief financial officer of the municipality must submit monthly reports to the municipality's chief
executive officer, each member of the city or town council, and school district committee certifying the status
of the municipal budget, including the school department budget or regional school budget.
•
The chief financial officer of the municipality must also submit quarterly reports to the State Office of
Municipal Affairs certifying the status of the municipal budget. The chief financial officer of the school
department or school district shall certify the status of the school district's budget and shall assist in the
preparation of these reports.
•
If any reports project a year-end deficit, the chief financial officer of the municipality must submit a corrective
action plan, providing for the avoidance of a year-end deficit, to the State Office of Municipal Affairs no later
than thirty (30) days after completion of his or her monthly budget analysis.
•
If, at the end of the fiscal year, the chief financial official determines that it is likely that the city or town's
general fund or combined general fund and unrestricted school special revenue fund will incur a deficit, the
municipality must immediately develop a plan to eliminate the accumulated year-end deficit by annual
appropriation over no more than five (5) years. This plan must be submitted to the State Auditor General for
approval.
Restrictions and Requirements
•
No municipality can sell long-term bonds in order to fund a deficit without prior approval by the Rhode Island
Auditor General and the Director of the Rhode Island Department of Administration.
•
No municipality can incur expenditures or obligate the municipality to expend unbudgeted amounts in excess
of $100,000 without first notifying the city or town council of the proposed expenditure and identifying the
source of funding. Any such expenditure must be included in the chief financial officer's monthly report.
9
•
No school committee or school department can incur accumulated unbudgeted expenditures in excess of
$100,000 without notifying the chief financial officer of the municipality of the proposed expenditure and
identifying the source of funding. Any such expenditure must be included in the chief financial officer's
monthly report.
•
School committees, boards or regional school districts that are independent government entities within a
municipality must cooperate in providing to the chief financial officer all information needed to formulate his
or her reports and the deficit elimination plan.
Remedies
•
If a municipality does not comply with the requirements of the Financial Reporting Act, the State Auditor
General or State Office of Municipal Affairs, through the Director of Administration, may elect any or all of
the following remedies:
- Petition the Superior Court for mandatory injunctive relief seeking compliance with the provisions of the
Financial Reporting Act;
- In the event a municipality fails to provide a year-end deficit elimination plan, implement a financial
review commission pursuant to Rhode Island General Laws Section 45-9-3; or
•
If a school committee or board fails to cooperate with the municipality or provide all information requested by
the chief financial officer needed to formulate a plan:
-Withhold State Aid.
-The Auditor General or the Director of Administration may petition the Superior Court to order the
school committee or board to cooperate; and
-The Director of Administration may also direct the Rhode Island Controller and General Treasurer to
withhold State Aid from a school committee until the school committee or board cooperates in the
formulation of the plan.
State Aid Intercept
Rhode Island General Laws § 45-12-32 creates a mechanism to enhance the creditworthiness of cities and towns in
financial stress by providing for a state aid intercept mechanism to pay general obligation bonds and notes. The intercept
mechanism is not a state guarantee. The statute provides that upon request of a city, town or regional school district, the
General Treasurer of the State will pay bonds, notes or certificates of indebtedness from certain available state aid otherwise
payable to the city, town or regional school district.
STATE AID
Regionalized School District Operations Aid
Pursuant to Rhode Island General Laws Sections 16-7-15 to 16-7-34, as amended, the State provides operations
assistance aid to each municipality and school district in the State. The statutes provide for reimbursement of school
expenditures based on a formula prescribed by the statutes which adjusts the reimbursement ratio based on relative
equalized valuation of property and median family income of a community relative to the State as a whole. The
establishment of the District historically meant an increase in operations aid for each of the member towns.
10
The following table summarizes Operations Aid expected to be received by each member towns in fiscal year 2010
through fiscal year 2012.
Charlestown
Hopkinton
Richmond
Actual
FY2010
$1,449,566
5,222,505
5,219,370
Actual
FY2011
$1,412,484
5,091,420
5,088,491
Budget
FY2012
$1,704,448
5,726,195
5,648,866
In 2010 the Rhode Island Department of Education made significant changes to the calculation of the funding
formula for education aid. The result of this change will create a shortfall of state aid to the District beginning in FY2012. It
is proposed that this loss will be further reduced by regionalization bonuses and high cost special education.
Housing Aid
The State provides construction aid to Rhode Island municipalities for the cost of building new public schools
subject to annual appropriation by the Rhode Island General Assembly. All new construction is eligible to assistance of a
minimum of 30% of the full cost of such buildings. Commencing with fiscal year 1990-1991, school housing project costs
may include the cost of interest payment on any bond issued after July 1, 1988. For projects approved by the voters after
June 30, 2003, the cost of interest on any bond will be reimbursed as an eligible project cost only if the bonds for these
projects are issued through the Rhode Island Health and Educational Building Corporation. The legislation authorizing State
School Construction Aid is subject to future change and all State aid is subject to annual appropriation by the Rhode Island
General Assembly.
Annually the assistance level is increased or decreased by utilizing a formula which takes into account the
equalized weighted assessed valuation and the debt service burden of the District compared with the State average of the
communities as a whole. In the case of the District, the school housing aid ratio is increased by two (2%) percent for each
grade consolidated, or 26% for grades K-12. The District's share ratio, borne by the State, for fiscal year 2010 is 56.00%.
State aid reimbursement for such projects is based on the share ratio established for that year.
The District received Housing Aid in the amount of $1,168,378 in fiscal year 2011 and budgeted $1,269,600 in
fiscal year 2012.
11
Comparative Financial Statements
The following summarizes the District revenues and expenditures for the fiscal years ending June 30, 2007 through
2011:
CHARIHO REGIONAL SCHOOL DISTRICT
Statement of Revenues and Other Financing Sources,
Expenditures and Other Financial Uses and Changes in Fund Balance
General Fund
For the Fiscal Years ended June 30,
2008
2009
2010
2007
Revenues
Contributions of participating towns
Tuition
Interest Income
State grants
Intergovernmental (Stabilization)
Miscellaneous
Intergovernmental pension contribution
Total revenues
Expenditures (1)
Current
Instruction
Instruction and improvements
Special student programs
Academic support
Operations
Administration
Leadership
Other Commitments
Community services
Benefits
Miscellaneous
Intergovernmental pension contribution
Capital
Capital outlay
Total expenditures
2011
$ 45,861,337 $ 47,327,311 $ 47,960,465 $ 45,875,382 $ 48,068,813
1,399,454
1,321,008
1,106,413
1,360,823
1,130,561
467,274
450,613
159,720
50,154
38,349
428,884
313,208
393,999
1,539,215
1,023,059
94,553
104,190
75,559
50,089
61,129
1,712,247
2,053,789
1,985,255
1,808,858
1,973,684
49,963,749
51,570,119
51,681,411
50,684,521
52,295,595
$ 16,190,928 $ 17,006,284 $ 19,159,981 $ 19,317,724 $ 21,074,628
785,806
914,003
7,154,216
7,576,751
6,478,560
7,858,211
7,529,720
11,015,382
11,096,188
6,640,253
6,978,058
7,406,695
251,216
193,038
2,434,999
2,406,290
2,480,412
4,434,340
2,134,881
3,363,136
11,488
36,178
10,121,130
10,732,716
10,398,081
9,644,630
10,575,729
12,500
1,712,247
2,053,789
1,985,255
1,808,858
1,973,684
182,089
48,140,997
595,201
50,157,117
52,207,125
49,867,192
53,352,844
1,822,752
1,413,002
(525,714)
817,329
(1,057,249)
-
(525,000)
(525,000)
32,015
(1,476,884)
(1,444,869)
-
Excess of revenues and other sources
over (under) expenditures and other uses
1,822,752
888,002
(1,970,583)
817,329
(1,057,249)
Fund balance, beginning of the year
5,027,401
6,850,153
7,738,155
5,767,572
6,584,901
6,850,153 $
7,738,155 $
5,767,572 $
6,584,901 $
5,527,652
Excess of revenues over (under)
expenditures before transfers
Other finanancing sources (uses)
Transfers in
Transfers out
Net other sources (uses)
Fund balance, end of the year
$
Source: Audited Financials from the District
(1) Reclassification of certain expenditures in 2009 and 2010 due to change to Uniform Chart of Accounts.
12
-
Set forth below is the General Fund Comparative Balance Sheets for the fiscal years ending June 30, 2007—2011:
CHARIHO REGIONAL SCHOOL DISTRICT
Balance Sheet
General Fund
2007
ASSETS
Cash and cash equivalents
Prepaid expenditures
Due from other funds
Due from state
Receivables (net)
Claims Deposit (Self-Insurance)
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Accrued payroll and benefits
Due to member towns
Claims payable
Deferred revenue
Due to other funds
TOTAL LIABILITIES
$
$
$
FUND BALANCES
Reserved:
Reserved for prepaid expenditures
Reserved for special education expenditures
Reserved for encumbrances
Unreserved:
Designated for special education
Designated for subsequent year expenditures
Designated for building committee
Designated for environmental clean up
Designated for health plan
Designated for debt service fund
Designated for management study
Designated for charter school pending litigation
Undesignated:
Reported in General Fund
Fund balance reported in:
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES $
For the Fiscal Years ended June 30,
2008
2009
2010
2011
7,997,219 $ 8,733,199 $
1,500,087
2,011,921
9,497,306 $ 10,745,120 $
7,121,090 $ 7,029,846 $
50,967
5,878
146,754
555,430
653,933
707,159
1,349,079
1,927,409
9,129,980 $ 10,417,565 $
5,619,592
18,876
88,291
440,043
1,644,109
7,810,911
298,646 $
1,860,240
280,000
208,267
2,647,153
493,160 $
2,471,748
397,500
3,362,408
613,515 $
2,270,525
549,224
399,400
3,832,664
389,369
1,508,590
385,300
2,283,259
521,831 $
1,946,535
295,000
243,599
3,006,965
54,914
-
75,000
-
50,967
75,000
8,276
-
150,000
1,200,000
9,023
74,772
1,215,111
-
75,000
1,500,000
3,244
142,364
1,545,475
-
2,250,000
951,579
400,000
100,000
-
1,386,556
1,528,009
90,000
569,859
-
4,146,333
4,472,072
1,990,993
2,876,234
-
6,850,153
7,738,155
5,767,572
6,584,901
1,333,809
1,697,505
2,496,338
5,527,652
9,497,306 $ 10,745,120 $
9,129,980 $ 10,417,565 $
7,810,911
Source: Audited Financials from the District
LITIGATION
In the opinion of District Officials, there is no litigation pending against the District which, either individually or in
the aggregate, would result in judgments that would have a materially adverse effect on the District’s financial position or its
ability to meet its debt service obligations.
13