Boundary Alteration Matrix

This matrix compares both short term (0-2 years) and long term (3-5 years) revenue and expenses associated with boundary alteration. The comparison of short term gains and losses results in an estimated loss to the district of $343,860. However, the long term comparison resulted in estimated savings over projected costs of roughly $1.9 million.

Short Term Analysis

Estimated Short Term Revenue – Gain or (Loss) – assumes boundary IS altered

Table of estimated short term revenue gain or loss from boundary alteration
Revenue Category Estimated REVENUE in dollars Explanation
School Taxes (880,376) Loss of school taxes based on 2017 Property Values and
M-WCSD School Tax Rate
State Aid Gain or (Loss) Due to Increases or Decreases in Aid Ratios 60,881 Estimated 2016-17 State Aid increase due to initial loss in district’s property value from the 220 acres
Future Transportation Aid n/a Estimate is not available
Textbook Aid (6,233) For 87 nonpublic school students who currently live on the 220 acres and 20 students who attend the M-WCSD schools and live on the 220 acres
Nonresident Tuition 239,380 For 20 M-W general education students living on 220 acres Average per student tuition of $11,969 to be paid by KJUFSD to M-WCSD
Sub-Total Gain or (Loss) ($586,348)

Estimate of Short Term Savings from Alteration – assumes boundary IS altered

Table of estimated short term savings in expenses from boundary alteration
Expense Category Estimated SAVINGS in dollars Explanation
Transportation for students attending nonpublic schools (living on the 220 acres) 67,367 Current transportation cost (net of aid) for 87 existing nonpublic school students and 20 students attending
M-WCSD schools living on the 220 acres
Students with disabilities – Tuition Private 853 Schools 0 No students from the 220 acres were sent by the M-WCSD CSE to programs at private special education schools
Nonresident Tuition for students with disabilities attending KJUFSD Programs 163,821 Three students from the 220 acres are currently attending KJ special education programs with tuition paid by M-WCSD
Parentally placed nonpublic school students receiving special education services from KJUFSD 11,300 Two students currently reside on the 220 acres and attend nonpublic school in KJUFSD and receive special education services provided by KJUFSD. KJUFSD bills M-WCSD for these students.
Sub-Total – Savings Gain or (Loss) $242,488

Net Present Value Gain or (Loss) due to boundary alteration = ($343,860)

Conclusion: Annexation is not favorable in the short term because cost savings do not exceed lost revenue.


Long Term Analysis

Estimated Long Term Revenue Lost – assumes boundary is NOT altered

Table of estimated long term revenue gain or loss from not altering boundary
Revenue Category Estimated REVENUE in dollars Explanation
School Taxes 5,832,174 Assumes $37 million increase in TAV (property wealth) from development of 220 acres
This number represents estimated future school taxes
M-WCSD would receive from the 220 acres
State Aid Gain or (Loss) Due to Increases or Decreases in Aid Ratios (151,827) Increased TAV from development of 220 acres would lower State Aid ratios and aid payable to M-WCSD
Future Transportation Aid 6,841,674 Future aid for the transportation of estimated 6,824 resident students ultimately expected to live on the 220 acres
Textbook Aid 397,498 Future Textbook Aid for estimated 6,824 students ultimately expected to live on the 220 acres
Nonresident Tuition 0 Assumes families of 20 non-Hasidic students will ultimately move away from the 220 acres
Sub-Total Gain or (Loss) $12,919,519

Estimate of Future Costs that will be avoided – assumes boundary is NOT altered

Table of estimated long term savings in costs from not altering boundary
Expense Category Estimated LONG TERM COST in dollars Explanation
Transportation for students attending nonpublic schools (who will be living on the 220 acres) (11,117,115) Total estimated cost of transportation for 6,824 additional students, including 6,757 nonpublic, 63 at KJUFSD and 4 at other special education schools who may ultimately live on the 220 acres
Students with disabilities – Tuition Private 853 Schools (89,642) Tuition Less Private Excess Cost Aid for 4 FTE students from 220 acres who may attend private special education schools
Nonresident Tuition for students with disabilities attending KJUFSD Programs (3,331,251) Nonresident Tuition for up to 63 disabled students from the 220 acres M-WCSD CSE would be required to pay, but would likely be placed in KJUFSD Special Education programs
Parentally placed nonpublic school students receiving Special Education Services from KJUFSD (351,790) Assumes 277 additional nonpublic school students may ultimately live on the 220 acres and receive special education services based upon current 4.1% KJUFSD classification rate for students attending nonpublic schools located in KJUFSD
Sub-Total – Savings Gain or (Loss) ($14,889,798)

Net Present Value Gain or (Loss) of NOT approving boundary alteration = ($1,970,279)

Conclusion: Annexation is favorable in the long term because future projected costs (associated with retaining  the 220 acres) after the area is fully developed are greater than future revenue from those acres by $1,970,279.