School Board Frederick County Approved Budget Public Schools Fiscal Year 2021

Winchester, Virginia 22601 www.frederick.k12.va.us NOTICE OF NON-DISCRIMINATION

In compliance with the Executive Order 11246; Title II of the Education Amendments of 1976; Title VI of the Civil Rights Act of 1972; Title IX Regulation Implementing Education Amendments of 1972; Section 504 of the Rehabilitation Act of 1973; and all other Federal and State laws and school policies and regulations, Frederick County Public Schools does not discriminate on the basis of race, color, national origin, religion, sex, age, political affiliation, disability, or veteran status in the education program and activities, or employment and provides equal access to the Boy Scouts and other designated youth groups.

It is the intent of Frederick County Public Schools to comply with both the letter and spirit of the law in making certain that discrimination does not exist in its policies, regulations, and operations. Grievance procedures, for Title IX and Section 504, have been established for students, their parents, and employees who feel discrimination has been shown by the school division.

All students attending Frederick County Public Schools may participate in education programs and activities, including but not limited to health and physical education, music, career and technical education. Educational programs and services will be designed to meet the varying needs of all students and will not discriminate against any individual for reasons of race, color, national origin, sex, religion, age, political affiliation, disability, or veteran status.

Questions concerning the application of this non-discrimination policy may be made to:

Title IX Coordinator (Adult Matters) Jennifer Rydholm Executive Director of Human Resources 1415 Amherst Street Winchester, VA 22601 540-662-3888

Title IX Coordinator (Student Matters) Section 504 Coordinator Teresa Ritenour Director of Student Support Services 1415 Amherst Street Winchester, VA 22601 540-662-3888

This Meritorious Budget Award is presented to

FREDERICK COUNTY PUBLIC SCHOOLS

for excellence in the preparation and issuance of its budget for the Fiscal Year 2019–2020.

The budget adheres to the principles and standards of ASBO International’s Meritorious Budget Award criteria.

Thomas E. Wohlleber, CSRM David J. Lewis President Executive Director

The Meritorious Budget Award through the Association of School Business Officials International recognizes school districts that demonstrate excellence in school budget presentation, setting a high standard for transparent budget development. Organization of the Budget Document The Approved Budget document’s format presents the school division’s budget and pertinent information in an organized and comprehensive document to facilitate the reader’s knowledge of the school division’s budget development, management, and processes. It includes financial information for the current budget year and financial information from previous fiscal years.

The document’s format follows the standards set forth by the Association of School Business Officials International Meritorious Budget Award Program. The purpose of this budget document is to provide policy information, serve as an operational guide and financial plan, and serve as a comprehensive communication tool for the school division’s stakeholders: students, parents, staff, constituents, and elected officials.

The document contains four major sections as listed and defined below.

The Executive Summary contains an overview of the Approved Budget and highlights changes planned compared to the prior fiscal year.

The Organizational Section includes the direction, organizational and management structure, strategic plans, and the budget development process of the school division.

The Financial Section includes budget data by summary and detail for all financial funds managed by the school division. It begins with a financial representation of revenue and expenses of all funds combined and then represents each fund individually from general funds (operating, debt service, capital projects, and special revenue) to other funds (fiduciary and proprietary). Description of revenue sources and expenditure needs are described within each financial fund.

The Informational Section includes information of interest to school division employees and the community at large. School Board Approved Budget Fiscal Year 2021

School Board

Mr. Jay W. Foreman, Chairman Shawnee District

Mr. Michael A. Lake, Vice Chairman Gainesboro District

Mr. Brandon H. Monk Back Creek District

Mr. Brian J. Hester Member at Large

Mr. Bradley A. Comstock Opequon District

Mrs. Shontyá C. Washington Redbud District

Mr. Frank E. Wright Stonewall District

Administration

Dr. David T. Sovine Superintendent

Dr. Albert L. Orndorff Assistant Superintendent for Administration

Dr. James F. Angelo Assistant Superintendent for Instruction

Mrs. Patty D. Camery Executive Director of Finance

Mrs. Jennifer W. Rydholm Executive Director of Human Resources

Mr. Steve E. Edwards Coordinator of Policy and Communications

Mrs. Kristen D. Anderson Assistant Director of Finance This page intentionally left blank. Table of Contents

Table of Contents

Table of Contents Executive Summary ...... 1 A Message from the Superintendent ...... 3 Organizational ...... 4 2019-2025 Strategic Plan ...... 4 Vision ...... 4 Mission ...... 4 School Board Members ...... 5 School Board Budget Priorities ...... 5 Superintendent’s Leadership Team ...... 5 The Planning Process ...... 6 Division Strategic Plan Priorities ...... 6 The Budget Process ...... 7 Allocation of Human and Financial Resources ...... 9 Financial ...... 10 FY 2021 Budget Highlights ...... 11 Approved Revenue Summary of All Funds ...... 12 Approved Expenditure Summary of All Funds ...... 15 Individual Fund Summaries ...... 17 Linking Budget Dollars to Student Achievement ...... 23 Financial Forecasts ...... 24 Informational ...... 25 Student Enrollment Trends and Forecasts ...... 25 Local Taxes ...... 27 Personnel Changes ...... 28 Benchmark Data ...... 29 Changes in Debt ...... 31 Organizational Section ...... 33 Overview ...... 35 Virginia Statutes and Regulations ...... 35 Legal Authority and Governance Structure ...... 35 FCPS Organizational Chart ...... 36 Frederick County School Board Members ...... 37 Frederick County Public Schools Leadership Team ...... 39 Facility Directory ...... 40 Frederick County School Location Map ...... 41 Frederick County At-A-Glance ...... 42 The Planning Process and Documents ...... 44 Vision ...... 44 Mission ...... 44 Short-Range Division Comprehensive Plan ...... 44 Long Range Division Strategic Plan ...... 45 Portrait of a Graduate ...... 45 2019-2025 Strategic Plan Inspire 2025: A Promise for Progress . . 46

iii Table of Contents

Division Educational Technology Plan for FY 2021 ...... 47 Financial Organization ...... 48 Basis of Presentation ...... 48 Governmental Funds ...... 48 Proprietary Funds ...... 48 Fiduciary Funds ...... 49 Classification of Revenues and Expenditures ...... 49 Significant Budget and Financial Policies and Practices ...... 50 Basis of Budgeting ...... 50 Capital Projects Budget Policies and Practices ...... 51 Debt Management Policies and Practices ...... 51 Fund Balance Class and Policy ...... 51 Encumbrances ...... 52 Expenditure Controls ...... 52 Accounting, Auditing, & Financial Reporting Policies and Practices . 52 Basis of Accounting ...... 52 Budget Development and Management Process ...... 53 Budget Development ...... 53 Budget Approval ...... 54 Capital Budget ...... 54 Budget Key Factors and Assumptions ...... 54 FY 2021 School Board Budget Priorities ...... 55 Budget Calendar ...... 55 Budget Management ...... 56 Financial Section ...... 57 Financial Structure ...... 59 Financial Reporting Pyramid ...... 59 All School Board Funds ...... 60 All Funds Revenue by Source ...... 60 County Funds ...... 61 State Funds ...... 61 Federal Funds ...... 61 Local/Other Receipts ...... 61 Fund Transfers ...... 61 Beginning Balance ...... 61 Undelivered Commitments ...... 61 All Funds Expenditures by State Category ...... 62 Instruction ...... 62 Administration, Attendance, and Health ...... 62 Pupil Transportation ...... 62 Operations and Maintenance ...... 63 School Food Services and Other Non-Instructional Operations . . . 63 Facilities ...... 63 Technology ...... 63

iv Table of Contents

Debt and Fund Transfers ...... 63 Contingency Reserves ...... 63 All Funds Expenditures by Object ...... 63 All Funds Combined Financial Statement ...... 64 Significant Shifts from Current Year ...... 64 Budget Estimates and Forecast Assumptions and Trends . . . . . 65 Other Post Employment Benefit Financial Disclosure ...... 65 Governmental Funds Combined Financial Statement ...... 66 School Operating Fund ...... 68 Operating Revenue Trends, Assumptions, & Significant Shifts from Current Year ...... 68 State Aid ...... 68 Federal Aid ...... 70 Sales and Other Receipts ...... 71 County General Fund ...... 72 Estimated Required Local Effort ...... 72 Operating Expenditures by State Category (Function) ...... 73 Operating Expenditures by Object ...... 75 Operating Expenditure Assumptions, Trends, & Significant Shifts from Current Year ...... 76 School Textbook Fund ...... 78 Textbook Revenues – Description, Assumptions, and Changes . . . . 78 Textbook Expenditures – Description, Assumptions, and Changes . . . 79 Textbook Fund Balance – Description, Assumptions, and Changes . . 79 School Nutrition Services Fund ...... 80 School Nutrition Revenue – Description, Assumptions, & Changes . . . 80 School Nutrition Expenditures – Description, Assumptions, & Changes . 81 School Nutrition Fund Balance – Description, Assumptions, & Changes . 81 Special Grants Fund ...... 82 Debt Service Fund ...... 83 School Debt Service Revenue ...... 83 School Debt Service Expenditures ...... 83 School Debt Service Forecast – Assumptions and Trends ...... 83 Relationship Between Current Debt Levels and Legal Debt Limits . . . 84 Construction Fund ...... 85 Significant Changes in Estimates and Forecasts ...... 86 Capital Improvements Impact to Operating Budget ...... 87 Capital Projects Fund ...... 88 Fiduciary Funds Combined Financial Statement ...... 89 NREP Operating and Textbook Funds Combined ...... 90 Private Purpose Funds ...... 91 Proprietary Funds Combined Financial Statement ...... 92 Consolidated Services Fund ...... 93 School Health Insurance Reserve Fund ...... 94

v Table of Contents

Informational Section ...... 95 Local Taxes ...... 97 Property Tax Rates and Collections ...... 97 Impact of Local Real Estate Tax on Taxpayers ...... 98 Enrollment Trends ...... 99 Student Enrollment Growth ...... 99 Enrollment Forecasting Methodology ...... 99 Membership History and Projections ...... 100 Changing Student Demographics ...... 102 Student Diversity ...... 103 FY 2021 School Calendar ...... 104 Authorized Personnel Positions ...... 105 School-Based Teachers ...... 105 School-Based Instructional Assistants ...... 106 School-Based Support ...... 106 Pupil Transportation ...... 106 Non-School-Based ...... 106 Position Changes ...... 107 Cost Per Pupil ...... 108 Debt Management ...... 109 School Division Accountability ...... 111 Federal Graduation Indicator ...... 115 Student Drop Out Rates ...... 116 FCPS Graduation Statistics – Class of 2020 ...... 116 Economically Disadvantaged ...... 116 Niche Ranking – FCPS Ranked 34th in Virginia ...... 117 Programs and Departments ...... 118 Instruction and Student Support Departments ...... 118 Board Services ...... 119 Executive Administration ...... 120 Policy and Information Services Department ...... 121 Human Resources Department ...... 122 Planning and Development Department ...... 123 Finance Department ...... 124 Transportation Department ...... 125 Facilities Services and Planning Department ...... 126 Information Technology Department ...... 128 Glossary ...... 129 Index ...... 135

vi Executive Summary

Executive Summary This page intentionally left blank. Executive Summary

A Message from the Superintendent It is my pleasure to present the Frederick County Public Schools Approved Budget for Fiscal Year 2021. The budget was developed to address priorities established by the School Board and to help fulfill the school division’s mission to nurture all learners to realize their dreams and aspirations through: • meaningful and engaging learning experiences • a collective responsibility for continuous growth • embracing a culture of diversity and inclusiveness • fostering and supporting innovative ideas that challenge conventional thinking • a commitment to forward-thinking learning environments

At the time the School Board adopted this budget, the COVID-19 pandemic had forced schools to close for the remainder of the 2019-20 school year and was having a dramatic impact on the economy at the local, state, and national levels. As a result, state revenues for Fiscal Year 2021 were reduced and a planned salary increase for all FCPS employees that was included in the budget adopted by the School Board was eliminated. Although a salary increase to help attract and retain high-quality staff will not be available for the 2020-21 school year, the budget does include the funding needed to open Jordan Springs Elementary School as planned, fund a small percentage of the preventative maintenance projects included in my proposed budget, and add five new teaching positions to help address enrollment growth.

When schools open for the 2020-21 academic year, guidelines provided by the Virginia Department of Education, the Centers for Disease Control and Prevention, the Virginia Department of Health, local health agencies, and the Governor’s office will likely result in many changes to our operations including student transportation, cleaning regimens, and instructional delivery. Utilizing technology will be critically important as distance learning and telework are very likely to be a part of our continued response to the pandemic. These changes will result in the need for additional expenditures while revenues likely decrease as a result of COVID-19. Regardless, we are committed to serving our community well and achieving our vision of being an innovative community where caring relationships and authentic learning inspire all students.

This document provides detailed information about Frederick County Public Schools, our operations, and the funds managed to operate the school division. Its publication is part of our effort to be transparent and help Frederick County’s taxpayers better understand how their investment in education is utilized to prepare the community’s children to be successful, engaged citizens. The document is organized into four sections: • an executive summary highlighting the organization and its finances, • an organizational section detailing the school division’s short-term and long-term goals, • a financial section providing details on the sources and uses of school division funds, • an informational section providing details on staffing, student achievement, and demographics.

I look forward to continuing to work with the School Board, Board of Supervisors, and our many stakeholders to move Frederick County Public Schools forward and build upon the outstanding reputation the division enjoys at both the state and national levels.

David T. Sovine, Ed.D. Superintendent of Schools July 2020

3 Executive Summary

Organizational Frederick County Public Schools (FCPS) is structured to meet instructional needs of 14,158 projected students for the fiscal year 2021 (July 1, 2020, through June 30, 2021) and to effectively manage 24 sites. In addition to the administration building, transportation center, and facilities services center, the school system comprises twelve elementary schools, four middle schools, three high schools, one career and technical/alternative learning center, and is fiscal agent for Northwestern Regional Educational Programs (NREP). FCPS is also a partner in Mountain Vista Regional Governor’s School for Science, Math, and Technology.

FCPS is the 20th largest of 132 school divisions in the state of Virginia. FCPS is regulated by Virginia statutes and is governed by the Constitution of Virginia. The Standards of Quality (SOQ), Standards of Learning (SOL), and Standards of Accreditation (SOA) are Virginia statutes and regulations that FCPS follows to provide students a free and appropriate public school education.

Seven elected School Board members serving staggered four-year terms set local policies and establish guidelines and procedures to ensure proper administration of FCPS. The superintendent, along with two assistant superintendents and other members of the leadership team, works closely to oversee the daily operations of the schools and support centers.

The role of the seven elected Board of Supervisors members is to provide funding to meet the needs of the division.

2019-2025 Strategic Plan The Frederick County School Board adopted the 2019-2025 Strategic Plan "Inspire 2025: A Promise for Progress" in May of 2019. The plan includes a Vision and Mission for Frederick County Public Schools.

Vision An innovative community where caring relationships and authentic learning inspire all students.

Mission The FCPS community nurtures all learners to realize their dreams and aspirations through: • Meaningful and engaging learning experiences • A collective responsibility for continuous growth • Embracing a culture of diversity and inclusiveness • Fostering and supporting innovative ideas that challenge conventional thinking • A commitment to forward-thinking learning environments

4 Executive Summary

School Board Members Seven School Board members serve staggered four-year terms. One member represents each of the county’s six magisterial districts, and one member serves in an at- large capacity. • Mr. Jay W. Foreman, Chairman, Shawnee District— term through 2021 • Mr. Michael A. Lake, Vice Chairman, Gainesboro District—term through 2023 • Mr. Brandon H. Monk, Back Creek District—term through 2023 • Mr. Brian J. Hester, Member at Large—term through 2023 • Mr. Bradley A. Comstock, Opequon District—term through 2023 • Mrs. Shontyá C. Washington, Redbud District—term through 2021 • Mr. Frank E. Wright, Stonewall District—term through 2021

School Board Budget Priorities The School Board approved the budget priorities shown below for fiscal year 2021, which support the Division Strategic Plan. • Instructional initiatives and professional learning to address increased accountability, improve student achievement, address student needs, and reflect student voice. • Compensation packages (salaries, benefits, and professional learning) that enable the recruitment and retention of high quality staff. • Operational funding to address preservation of assets (facility maintenance), replacement school buses, safety and environmental enhancements, and aging infrastructure/systems.

Superintendent’s Leadership Team The leadership of Frederick County Public Schools works daily with principals and support departments. • Dr. David T. Sovine, Superintendent • Dr. Albert L. Orndorff, Assistant Superintendent for Administration • Dr. James F. Angelo, Assistant Superintendent for Instruction • Mrs. Patty D. Camery, Executive Director of Finance • Mrs. Jennifer W. Rydholm, Executive Director of Human Resources • Mr. Steve E. Edwards, Coordinator of Policy and Communications and Clerk of the Frederick County School Board

5 Executive Summary

The Planning Process The staff of FCPS continuously plans the division’s programs initiated through collaborative meetings, studies of best practices, reflective evaluations, and changes in circumstances.

Organizational planning is guided by the School Board Vision and Mission, the Division Strategic Plan, the Educational Technology Plan, the Capital Improvement Plan, the Capital Asset Plan, and the Annual Operating Budget. These planning documents serve as guiding tools for fostering an innovative community where caring relationships and authentic learning inspire all students of Frederick County. They are reviewed periodically and are influenced by actions of the irginiaV General Assembly, the Virginia Department of Education, and local governing body funding levels.

Frederick County Public Schools strives to be a learning organization; one in which students experience purposeful engagement for learning and where leadership is relentlessly focused on student learning through evidence-based teaching. Teachers and staff receive intentional and targeted professional development on research-based instructional strategies that meet the needs of all learners and enable students to attain their goals. Division Strategic Plan Priorities School Board priorities are outlined in the Division Strategic Plan. The Strategic Plan includes the following components: student success, culture, strategic partnerships, and high quality staff. To guide student success, FCPS partnered with parents, students, business/community leaders, and school staff to develop the FCPS Portrait of a Graduate. FCPS Portrait of a Graduate represents competencies needed for students to be successful and "life ready" regardless of what they choose to pursue after earning their high school diploma. Planned strategic priorities are listed below. Student Success: • FCPS will create a Learning Framework that articulates a Portrait of a Graduate from Pre-K through 12th grade by the fall of 2020. • FCPS will design and establish a Pre-K–12 system to access the Portrait of a Graduate competencies by the fall of 2022. • FCPS will implement instruction that integrates the vital components of the FCPS Learning Framework in curriculum for meaningful, purposeful educational experiences by 2022. Culture: • All staff will have regular opportunities to collaborate with both their job-alike peers and interdisciplinary peers by the fall of 2020. • FCPS will nurture a culture of continuous professional learning to refine and expand professional practice and support student growth and development by 2022. • FCPS will promote an engaged learning community characterized by trust and belonging, valuing diverse perspectives and encouraging individual voice and choice by 2020. • FCPS will collect and analyze data across our education system to monitor progress on the goals of Inspire 2025 and adjust as needed. Strategic Partnerships: • FCPS will establish a plan to develop, sustain, and grow strategic and purposeful partnerships by the fall of 2021. • FCPS will engage all students through academic and social-emotional learning experiences supported by partnerships by the fall of 2021. • FCPS will connect with all families by strengthening two-way communications, relationships, and family engagement.

6 Executive Summary

High Quality Staff: • FCPS will create the Portrait of an FCPS Talent Contributor by 2020. • FCPS will enhance recruiting efforts by defining and effectively sharing the FCPS brand by 2020. • FCPS will complete a comprehensive plan for rewards and recognition that includes a total rewards study with goals and targets for the next five years by the fall of 2020. • FCPS Human Resources Department (HR) will create a departmental strategic plan that will include an internal review of current policies, practices, and goals that align with division goals by the fall of 2020.

The Budget Process A budget process exists to meet state code requirements; provide a means to align School Board vision, strategic plans, and allocation of resources; and represents fiduciary responsibility as good stewards of public funds. Virginia State Code 22.1-92 requires school divisions to estimate monies needed for public schools as well as public notice of costs to be distributed. Virginia State Code 22.1-91 sets limitation on expenditures equal to or less than funds available for school purposes within a fiscal year.

Budget planning is a year-round activity with stages of development, deliberation, adoption, reporting, monitoring, and adjustment to the financial plan. The role of the School Board is to develop a budget that reflects the needs of the school division. The Board of Supervisors is tasked with allocating funds for the school division and setting the tax rate. Virginia code requires the School Board to prepare and submit to the governing body, Frederick County Board of Supervisors, an estimate of the amount of money needed during the ensuing fiscal year. By May 15 of each year, the governing body must prepare and approve a budget for informative and fiscal planning purposes. The budget contains a complete itemized and classified plan of expected expenditures and all estimated revenues and borrowings for Frederick County government and Frederick County Public Schools for the ensuing year. The budget must be approved and a tax rate fixed no later than the date on which the fiscal year begins.The approved budget is available on the locality’s website or by hard copy for citizens.

Superintendent’s Proposed Budget The annual budget process begins in the fall of the preceding year. The budget calendar is developed including public work sessions, public hearings, and adoption dates. The superintendent, with assistance from staff, prepares a needs-based budget. Many factors influence the proposed budget—economic conditions, enroll­ment growth, staffing needs based on student enrollment, instructional and operational goals outlined in the Division Strategic Plan, technology, facilities and school bus replacement schedules, public input, and other initiatives that support FCPS’ mission and goals.

The Superintendent’s Proposed Budget is presented to the School Board and shared with the Frederick County Board of Supervisors in February. It is supported by state revenue estimates proposed by the Governor of Virginia and a funding request of the Frederick County Board of Supervisors. Federal and other sources of revenue are based on historical trends and current available information.

The expenditure component of the Superintendent’s Proposed Budget includes salaries, employee benefits, contracted services, materials, supplies, capital outlays for replacement and new equipment, utilities, vehicle fuel, and other operational expenses. Costs to continue operations are projected based on existing staff salaries and benefit offerings, restricted program requirements, and inflationary estimates on services, utilities, and supplies. New staffing needs are projected by the central office based on projected student enrollments, pupil teacher ratios as mandated in Standards of Quality and School Board objectives, and support services for the division. Schools and support departments are allocated funds for budgeting their fixed operational costs for services, materials, and supplies.

Project costs for constructing new schools or renovating older schools are planned and accounted for in the School Construction Fund. Annually, construction costs are determined and developed

7 Executive Summary through the Capital Improvement Plan. Financing for approved construction projects is included in the Superintendent’s Proposed Budget through the School Debt Service Fund. As revenues are available, other non-recurring capital needs costing $50,000 or more are proposed under the Capital Projects Fund. School Board’s Advertised Budget The School Board meets with the superintendent and leadership staff during work sessions in February and March. Based on these work sessions, the School Board determines if modifications are needed to the Superintendent’s Proposed Budget for advertisement. As required by Virginia law, a public hearing is conducted to obtain comments and recommendations from the public prior to April 1.

Approved Budget The Frederick County Board of Supervisors holds budget work sessions and public hearings then appropriates funds for the school division by the middle of April. In Virginia, the governing body may appropriate funds by fund total or by state determined categories. In Frederick County, the school division budget is approved by fund total. The School Board then amends its budget based on county funding levels. Funding levels are then allocated to schools and support departments. Teacher employment contracts are produced and distributed based on approved funding levels. An approved School Board budget document for the fiscal year is then published.

Budget Implementation Once the budget is adopted by the Frederick County School Board, it becomes the financial base for programs of each school and department during the fiscal year that begins on July 1. Fiscal accountability is by individual account code. Budget account holders may not expend or encumber more than the approved budget amounts. Financial monitoring of department and school activities occurs throughout the year to ensure compliance. An amendment to total funding level for operations, capital outlay, and debt service requires approval of a resolution from the Frederick County Board of Supervisors. Budget adjustments within individual funds do not require a resolution.

Budget Development Calendar Frederick County Public Schools Fiscal Year 2021 Budget Development Calendar Fall 2019 March 2020 • School Board work session on budget goals • 3/3–Regular School Board budget work session and • Enrollment projections shared with school board budget public hearing members • 3/7–General Assembly concludes 60 day session • Preliminary Preparation • 3/17–Regular School Board meeting • 3/25–Board of Supervisors meeting and budget public December 2019 hearing • 12/3–Regular School Board work session • 12/17–Governor's 2020-2022 biennium budget proposal April 2020 • 12/17–Regular School Board meeting • 4/7–Regular School Board work session • 4/8–Board of Supervisors approval of the FY 2021 budget January 2020 • 4/20–FCPS Finance Committee meeting • 1/7–Regular School Board work session • 4/21–School Board approval of the FY 2021 budget • 1/8–General Assembly convenes for 2020 session • 1/21–Regular School Board meeting May 2020 • Distribution of budget allocations and publish salary scales February 2020 • Issue contracts and assignment letters • 2/4–Regular School Board work session • 2/18–Superintendent's proposed FY 2021 budget July 2020 • 2/26–Joint School Board/Board of Supervisor budget work session • 7/1–Fiscal year 2021 begins

8 Executive Summary

Significant Changes During the FY 2021 Budget Process As the FY 2021 budget was being developed for the 2020-21 school year, the world was experiencing "stay at home" orders due to the spread of COVID-19. The stay at home orders affected the economy through unemployment, reduced sales, and lottery purchases. Economic activity declines resulted in less sales tax and lottery proceeds collected by Virginia and necessitated a state revenue budget reduction shortly after the school division's budget was approved by local government. The state budget reduction equated to $1.8 million for FCPS. These funds are reserved in the budget as excess appropriation without cash forthcoming; therefore, salary increases and improvements to at-risk programs will not be realized.

Allocation of Human and Financial Resources Human and financial resources are proposed for consideration based upon student enrollment projections and estimated funding levels. Projections for September student membership are forecasted by the Office of Planning and Development. The forecasting methodology used to predict the number of students who will enroll in Frederick County Public Schools (FCPS) is a combination of cohort migration and live birth trend analysis. Attendance boundary analysis is also used for allocating staff among schools.

FCPS receives funds through a variety of sources including federal, state, county, and local (miscellaneous) sources. In the fall of each year, the amount of revenue from all sources is projected for the next fiscal year. From these estimates, the total proposed funding level is submitted. The proposed budget is based on the School Board’s budget goals as aligned to the Division Strategic Plan.

Funds for staffing are based on required minimum staffing ratios determined by theirginia V Board of Education and the current instructional priorities of the School Board. The School Board has established recommended division average pupil teacher ratios as reflected in the following table. Also included in the following table are state and local funded average pupil teacher ratios for FY 2021. Pupil Teacher Ratios Grades Recommended Funded Kindergarten 18:1 19:1 1 - 3 18:1 19:1 4 - 5 22:1 23:1 6 - 8 24:1 23:1 9 - 12 24:1 22:1

Some special situations either require or encourage a smaller class size. For example, special education class sizes are limited based on student disability. Additionally, students who may be at risk academically show more success when placed in low class-size enrollments. Funds for the cost of staffing are allocated to programs, schools, and departments based on actual salaries and benefits.

9 Executive Summary

Financial The budgeting and accounting systems of Frederick County Public Schools are organized and operated on the basis of accounts comprised of assets, liabilities, fund balances, revenues, and expenditures as appropriate. School division resources are allocated to and accounted for in individual funds based on the purpose for which they are intended to be spent or for which they are restricted. The division has three major types of funds—governmental, fiduciary, and proprietary.

Fund Classification Fund Type Description School Board Fund Governmental Funds, Operating The School Operating Fund is FCPS' School Operating Fund account for operating and primary fund and is used to account for special activities revenue and expenditures necessary for the day-to-day operations of FCPS.

Debt The Debt Service Fund is used to Debt Service Fund account for the transfers of funds, primarily from the county's general fund, for the payment of general long- term debt principal and interest. Capital The Construction Fund is used to Construction Fund Projects account for restricted or assigned financial resources to be used for the acquisition, construction, or repair of FCPS major capital facilities. Capital The Capital Projects Fund provides for Capital Projects Fund Projects major maintenance projects not supported by the Operating Fund and are not considered construction projects. Special Special Revenue Funds are used to Textbook Fund, Revenue account for proceeds of specific School Nutrition Fund, revenue sources, other than major Special Grants Fund capital projects, in which expenditures are restricted for a specified purpose.

Fiduciary Funds, Trust Fiduciary Funds are custodial in nature NREP Operating Fund, account for resources and do not involve measurement of NREP Textbook Fund, held for others by FCPS as results of operations. Private Purpose Funds an agent or trustee Proprietary Funds, Internal Internal Service Funds are used to Consolidated Services Fund, account for business type Service report an activity that provides goods Health Insurance Reserve Fund activities or services to other funds, departments, or agencies of primary government, or other governments on a cost-reimbursement basis.

10 Executive Summary

FY 2021 Budget Highlights

FISCAL YEAR 2021 APPROVED BUDGET – ALL FUNDS FULL-TIME FUND EQUIVALENT TOTALS POSITIONS (FTE) School Operating Fund $ 181,760,421 2,150.7 School Debt Service Fund $ 17,957,232 - School Capital Project Fund $ 4,415,900 - School Construction Fund $ - 3.0 School Textbook Fund $ 2,871,240 0.5 School Nutrition Services Fund $ 7,581,744 94.4 Special Grants Fund $ - - Northwestern Regional Educational Program (NREP) $ 6,251,913 77.8 NREP Textbook Fund $ 20,000 - Private Purpose Funds $ 500,000 1.0 Consolidated Services Fund $ 3,600,000 14.0 Total FY 2021 - All Funds $ 224,958,450 2,341.3 Numbers may not add correctly due to rounding. School Construction, Health Insurance Reserve, and Special Grants funds are appropriated in a different manner.

All Funds Revenue • Total revenue increases by about $6.5 million or 2.9 percent. • County revenue increases by $2.4 million or 2.3 percent due to increasing tax collections on real estate and personal property. • $3.7 million in county proffer funds are allocated for nonrecurring capital items. • State revenue is approximately $4.1 million more than FY 2020—a 4.9 percent increase. • State lottery proceeds provide about $6.4 million in state funding for FCPS. (Shortly after budget adoption, this amount was reduced by $1.8 million.) • Federal revenue is approximately $0.5 million more than FY 2020.

All Funds Expenditures • Projects student enrollment of 14,158 reflecting 243 more students than the prior school year. • A salary increase is not provided for staff. • Opens Jordan Springs Elementary School, the county's 12th elementary school. • Supports 2,341.3 full time equivalent (FTE) employee positions. • Allocates funds for professional learning focused on student mental health. • Supports student enrollment growth through more teachers. • Invests in safe and secure schools through enhancing school entrances. • Invests in infrastructure by replacing critical facility capital assets. • Provides funding for new science textbooks for all levels and high school English textbooks.

11 Executive Summary

Approved Revenue Summary of All Funds FCPS receives revenue to support its programs from three primary sources: the Frederick County Board of Supervisors, the Commonwealth of Virginia, and the United States Federal Government.

The approved revenue budget was developed based on the Virginia General Assembly adopted state budget. County funding revenues were based on a funding scenario approved by the County Board of Supervisors allocating 57 percent of the projected increase in local tax revenues to schools, which are accounted for in the School Operating Fund, School Capital Projects Fund, and School Debt Service Fund. Federal and other revenues were based on the latest revenue estimates. At the time federal revenues were estimated, the impact of the Coronavirus Aid, Relief, and Economic Security (CARES) Act was not known to FCPS; therefore, it is not included in the FY 2021 adopted budget.

Money is also received from local sources including tuition, fees, rental of school property, and donations. Additional revenues may be available to the school division through grants and bond sales. The School Board is limited in the amount of revenue provided to the division. The School Board is not a taxing authority and must rely on the governing body, the Frederick County Board of Supervisors, for most of its funding.

In addition to the School Operating Fund, School Capital Projects Funds, and School Debt Service Fund, other funds including construction, school textbook, NREP, school nutrition services, consolidated services, health insurance, private purpose funds, and special grant revenues are also explained in this section under the appropriate revenue source.

The table below and the following discussion of significant changes illustrate a consolidated overview of revenues received and expected by all funds.

ALL FUNDS REVENUE FISCAL YEAR 2021 FY 2021 APPROVED APPROVED CHANGE OVER PERCENT REVENUE SOURCE 2020 2021 FY 2020 CHANGE Federal 8,231,678 8,758,224 526,546 6.4% State 84,135,340 88,255,559 4,120,219 4.9% County 106,693,465 109,109,365 2,415,900 2.3% Other 13,485,725 13,355,078 (130,647) -1.0% Fund Equity/Transfers 5,892,356 5,480,224 (412,132) -7.0% Total 218,438,564 224,958,450 6,519,886 3.0%

Funding is mostly provided by the County

Fund Other Equity/ 6% Transfers County 3% 49% Federal 4%

State Aid & Sales Tax 39%

12 Executive Summary

Federal Revenue – $8.7 Million Federal aid is received for various entitlement federal programs and specific grants. Federal revenues are restricted for specific purposes. Federal funds support instructional services for career and technical education, special education for students with disabilities, adult education, students who are economically or educationally disadvantaged, and the national school lunch program. For FY 2021, FCPS is projected to receive $8.7 million from the federal government—a 6.4 percent increase compared to FY 2020.

Of the $8.7 million anticipated federal revenue, $5.0 million will be used for supplementing instruction for students disabled or intellectually/economically disadvantaged under Individuals with Disabilities Education Act (IDEA) and Every Student Succeeds Act (ESEA). Additionally, $3.0 million in federal aid is projected to be received for the School Nutrition Services Fund to subsidize lunches and breakfasts provided to eligible students, either free or at a reduced cost. Federal funds through the Virginia Preschool Initiative Plus grant funds are discontinued for FY 2021. Other federal funds of $0.7 million primarily consist of School Debt Service Funds to offset the interest cost associated with the Qualified School Construction Bond loan, making it a near zero interest loan, and other federal funds for specific purposes designated by the grant.

FEDERAL REVENUE APPROVED APPROVED ($ IN MILLIONS) FY 2020 FY 2021 IDEA $ 2.7 $ 2.9 ESSA $ 2.1 $ 2.1 Child Nutrition Act $ 2.8 $ 3.0 Other Federal Funds $ 0.6 $ 0.7 Total $ 8.2 $ 8.7 Every Student Succeeds Act (ESSA) Individuals with Disabilities Education Act (IDEA)

State Revenue – $88.2 Million State revenue is received in two forms: state aid and sales tax. State aid includes funding for basic aid to support the Standards of Quality (SOQ) and categorical aid, incentive programs, and lottery funds for special programs and initiatives. Virginia operates under a biennial budget; therefore, state aid is budgeted for a two-year period. Adjustments are subject to student membership, economic conditions, and changes made by the General Assembly. Significant state funding changes usually occur in the first year of the biennial budget due to updating SOQ amounts to reflect the prevailing costs of providing educational services. The second year usually contains minimal changes in funding due to changes in student enrollment and economic conditions.

A locality’s state aid is determined by its ability to pay for education. Virginia recognizes that some localities are wealthier than others. The state attempts to equitably distribute funding for education among localities by applying a factor to adjust a locality’s state aid based on the locality wealth factor— the Local Composite Index (LCI). The LCI includes wealth capacity indicators of assessed value of real property, adjusted gross income, and taxable retail sales within a locality as compared to the state totals. School divisions with a low composite index receive more state aid per pupil, and localities with a high composite index receive less state aid. For FY 2021, Frederick County’s composite index is 0.4120. The state will fund 58.8 percent, and Frederick County is minimally required to pay 41.2 percent of the cost of

13 Executive Summary the educational program set by the state SOQ. In FY 2021, FCPS is projected to receive $88.2 million from the state. State funding to support the Standards of Quality and funding from sales tax revenues are the largest sources of state funds for FCPS.

STATE REVENUE APPROVED APPROVED ($ IN MILLIONS) FY 2020 FY 2021 Standards of Quality $ 56.4 $ 59.5 Sales Tax $ 16.0 $ 16.9 Incentive Programs $ 4.6 $ 1.9 Categorical Programs $ 0.9 $ 0.9 Lottery Proceeds $ 5.3 $ 6.4 Other State Funds $ 0.9 $ 2.6 Total $ 84.1 $ 88.2

County Transfer of Revenue – $109.1 Million Real property, personal property, and local sales taxes are the primary revenue sources for Frederick County. The Frederick County Board of Supervisors appropriates (approves) a transfer of revenue to the Frederick County School Board to fund the School Operating, Debt Service, and Capital Projects Funds. For FY 2021, the school division will receive about $109.1 million in county funds representing a $2.4 million or 2.3 percent increase compared to the FY 2020 approved budget.

Estimated Required Local Effort Per Virginia Code §22.1-94, the local required match/effort are funds to be provided by the county to fund schools' cost of maintaining an educational program meeting the prescribed Standards of Quality and certain incentive programs. The total cost is apportioned between the state and the local government.

Estimated Required Local Effort for FY 2021 is $41,970,295 and represents the minimum operating funding required.

Other Revenue – $13.4 Million About $13.4 million in revenues from various sources are projected to be available in FY 2021. These miscellaneous revenue sources include rental of school property, donations/grants, Northwestern Regional Educational Programs (NREP) locality billings, driver education fees, tuition for various programs, school breakfast and lunch sales, parking fees, and vehicle maintenance services provided to FCPS and other government agencies. Other funds, including textbook, private purpose, insurance reserve, NREP funds, and special grants, are supported by interest earnings, billings, or individual receipts.

Fund Equity/Transfers – $5.5 Million Fund equity (carry-forward/beginning balances) of textbook, school nutrition services, NREP, and debt service funds and transfers between funds account for $5.5 million of the $224.9 million total revenue for School Board funds.

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Revenue Comparison The following chart compares revenue on a per student basis received by all Virginia schools. The data is from the Virginia Annual School Report compiled by the Virginia Department of Education and is for the year ending June 30, 2019—the most current comparable information available. Revenues for operating, capital projects, textbooks, and school nutrition are compared.

Revenue Source Comparison on a Per Student Basis 100%

80% 50% 51% 65% 60%

40% 45% 42% 20% 32%

0% 5% 3% 7% Frederick County Regional Average State Average

Federal Aid State Aid County/City/Local

Source: 2019 Virginia Annual School Report by the Virginia Department of Education

Approved Expenditure Summary of All Funds This summary provides a consolidated overview of the expenditures in all funds by expenditure type. Summary expenditure information on each fund and the budget changes from FY 2020 to FY 2021 are also included in this executive summary. The approved expenditure budget was developed using a zero-based approach for 98 percent of the accounts reflecting current estimates for actual expenditures.

ALL FUNDS EXPENDITURES FISCAL YEAR 2021 FY 2021 CHANGE EXPENSE APPROVED APPROVED OVER PERCENT PERCENT TYPE FY 2020 FY 2021 FY 2020 CHANGE OF TOTAL Personnel 160,607,680 163,140,108 2,532,429 1.6% 72.5% Operating 28,672,164 32, 211,978 3,539,814 12.3% 14.3% Capital Outlay 7,486,630 5,825,341 (1,661,289) -22.2% 2.6% Debt Service 16,726,869 17,957,232 1,230,363 7.4% 8.0% Pmts to Regional Programs 4,096,515 4,196,427 99,912 2.4% 1.9% Transfers 548,707 1,127,364 578,657 105.5% 0.5% Private Purpose 300,000 500,000 200,000 66.7% 0.2% Total $ 218,438,564 $ 224,958,450 $ 6,519,886 3.0% 100.0%

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Personnel – $163.1 Million Personnel includes all salaries, wages, employee benefits such as retirement through the irginiaV Retirement System, health and life insurance, payroll taxes, and workers' compensation. Personnel expense increased by $2.5 million or 1.6 percent due to the addition of 48.4 full-time equivalent positions.

Operating – $32.2 Million Operating expense includes contracted services for instruction such as speech, occupational and physical therapy, and interpreting as well as contracted services for grounds maintenance. Also included in operating are utilities, vehicle and bus fuel, food, materials, and supplies.

Capital Outlay – $5.8 Million Capital outlay includes the purchase of new and/or replacement fixed assets costing $5,000 or more. Included here are machinery, equipment, furniture, fixtures, communications equipment, motor vehicles, school buses, technology software, hardware, and infrastructure. Construction projects are also included. Debt Service – $18.0 Million Debt service includes principal and interest payments on bonds and other borrowings for school construction amortized over a twenty-year period.

Payments to Regional Programs – $4.2 Million Payments to regional programs include Northwestern Regional Educational Programs (NREP) and Mountain Vista Regional Governor's School (MVRGS). These payments include FCPS' share of program costs for students with special educational needs at NREP and gifted educational needs at MVRGS.

Transfers – $1.1 Million Operating funds are transferred to the Textbook Fund to support the local required match to provide textbooks free of charge to students and to the School Nutrition Fund to support uncollectible student meal accounts. The significant increase is due to the timing of the textbook adoption schedule.

Private Purpose – $0.5 Million Private purpose funds are restricted for purposes in which donations or grant funds are received by FCPS. Bright Futures activities are recorded here and do not affect the results of school operations.

As indicated in the following table, the approved total for all funds budgeted expenditures increased by $6.5 million in FY 2021 based on available revenues of $224.9 million. Estimates for School Construction, Health Insurance Reserve, and Special Grants are excluded from the approved budget columns in the following table as they are appropriated differently. Estimates for these funds are included under Financial Forecasts.

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Individual Fund Summaries The following pages provide an overview of the revenues and expenses projected for each fund.

School Operating Fund $181.8 Million, 2,150.7 positions Revenue Changes by Source The School Operating Fund provides for the daily operations of the school division. It is funded by state, county, federal, and other miscellaneous local funds. For this fund, revenues are increased by $5.8 million or 3.3 percent in FY 2021 to a total of $181.8 million.

SCHOOL OPERATING FUND REVENUE FISCAL YEAR 2021 FY 2021 CHANGE APPROVED APPROVED OVER PERCENT PERCENT OF REVENUE SOURCE FY 2020 FY 2021 FY 2020 CHANGE TOTAL Revenue Sales Tax 16,045,216 16,867,866 822,650 5.1% 9.3% State Aid 66,947,141 70,064,503 3,117,362 4.7% 38.5% Federal Aid 5,113,311 5,439,792 326,481 6.4% 3.0% Tuition, Fees & Other 1,430,716 1,080,326 (350,390) -24.5% 0.6% Sub-total Receipts 89,536,384 93,452,487 3,916,103 4.4% 51.4%

County Transfer 86,445,165 88,307,934 1,862,769 2.2% 48.6% Fund Equity/Transfers - - - 0.0% 0.0%

Total $ 175,981,549 $ 181,760,421 $ 5,778,872 3.3% 100.0%

Sales Tax and State Aid Revenue – $3.9 Million Increase State revenues received by FCPS (including sales tax and lottery proceeds) are estimated at $86.9 million and reflect an increase of $3.9 million due to more sales tax revenue and rebenchmarking the Standards of Quality costs. Shortly after budget adoption, state revenues were reduced by $1.8 million due to the COVID-19 pandemic.

Federal Revenue – $0.3 Million Increase Federal revenues of $5.4 million reflect a $0.3 million increase for the School Operating Fund. The increase is to support students with special education needs.

Tuition, Fees, and Other Miscellaneous Local Revenues – $0.4 Million Decrease Local revenues include such items as tuition and fees from students, charges from the use of facilities, program rebates, and the sale of surplus property. The decrease reflects activity through the E-Rate program.

County Transfer of Revenue – $1.9 Million Increase County transfer of revenues is projected to be $88.3 million for the School Operating Fund—an increase of $1.9 million or 2.2 percent compared to FY 2020. The increase reflects rising property values within the county.

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Operating Expenditure Changes by Object The School Operating Fund expenditures are increased by about $5.8 million or 3.3 percent in FY 2021 compared to FY 2020 to a total of $181.8 million.

SCHOOL OPERATING FUND EXPENDITURES FISCAL YEAR 2021 FY 2021 CHANGE APPROVED APPROVED OVER PERCENT PERCENT EXPENSE BY OBJECT FY 2020 FY 2021 FY 2020 CHANGE OF TOTAL Salaries 107,727,443 108,763,823 1,036,380 1.0% 59.8% Benefits 43,557,254 45,145,244 1,587,990 3.6% 24.8% Sub-total Personnel 151,284,697 153,909,066 2,624,369 1.7% 84.7% Purchased Services 6,243,098 8,167,852 1,924,754 30.8% 4.5% Other Charges 5,872,958 6,103,450 230,492 3.9% 3.4% Materials & Supplies 6,830,454 7,371,597 541,143 7.9% 4.1% Sub-total Operating 18,946,510 21,642,898 2,696,388 14.2% 11.9% Capital Outlay 1,105,120 884,666 (220,454) -19.9% 0.5% Pmts to Regional Prgms 4,096,515 4,196,427 99,912 2.4% 2.3% Transfers 548,707 1,127,364 578,657 105.5% 0.6% Total $ 175,981,549 $ 181,760,421 $ 5,778,872 3.3% 100.0%

Personnel – $2.6 Million Increase Education is labor Eighty-five percent of School Operating revenues fund personnel intensive expense—salary costs for regular personnel positions, overtime, temporary employees, substitutes, and supplemental pay. Health 15% insurance, retirement plans, Social Security, life insurance, and worker’s compensation are included here. The $2.6 million increase supports the addition of 45.6 full-time equivalent positions to open Jordan Springs 85% Elementary School and support student enrollment growth. These positions are directly serving students and are supported by the School Operating Fund. Salaries & Benefits All Other Operating – $2.7 Million Increase Twelve percent of School Operating revenues fund operating expenses including purchased services (legal, repairs and maintenance, occupational and physical therapy, and other services not performed by FCPS employees), other charges (utilities, insurance, travel, memberships, lease/rent of equipment, etc.), and materials and supplies for instruction and support operations. The $2.7 million increase to operating is primarily due to appropriation reserve of $1.8 million reflecting a state revenue reduction shortly after the budget was adopted.

Capital Outlay, Payments to Regional Programs, and Transfers – $0.5 Million Increase Capital outlay includes replacement and new computer hardware, vehicles, and heavy equipment. Payments to Northwestern Regional Education Program and Mountain Vista Regional Governor's School include FCPS’ cost share for FCPS school-age students projected to be enrolled in those programs. Transfers include a transfer of local required and subsidy funds to the School Textbook Fund to purchase textbooks for students free of charge. The increase in transfers is to support the textbook adoption schedule. Payments to regional programs increased due to additional student enrollment in the special education program at NREP. Transfers also include $30,000 for the School Nutrition Fund to support uncollectible student meal accounts.

18 Executive Summary

Operating Fund Expenditure Adjustments FY 2021 adjustments in School Operating Fund expenditures are listed in the following chart and are explained in the following text. Spending adjustments are $5.8 million more than FY 2020.

SCHOOL OPERATING FUND FY 2021 EXPENDITURE ADJUSTMENTS OVER FY 2020 Baseline Adjustments $ 235,144 Net adjustments in all grants/restricted programs $ 266,829 Market conditions on selected accounts (payroll, fuel, utilities, services, etc.) $ (1,175,128) Virginia Retirement System rate increase $ 943,369 NREP & MTN Vista Governor's School operating changes (FCPS share) $ 99,912 Transfers for textbook required local effort and school nutrition bad debt $ 100,162 Goal: Improve student achievement $ 3,722,881 New staffing for student growth and special needs $ 432,000 New staffing to open Jordan Springs Elementary School $ 2,475,331 Operational items to open Jordan Springs Elementary School (utilities, bus, supplies, etc.) $ 337,055 Additional transfer for new science textbooks at all levels $ 478,495 Goal: Asset preservation and operations $ 39,341 Facilities preventive maintenance $ 39,341 Appropriation reserve due to budget adoption timing $ 1,781,506 State funding reduction due to COVID-19 pandemic's effect on the economy $ 1,781,506

Totals $ 5,778,872

Baseline Adjustments – $0.2 Million Increase Baseline adjustments include costs for per­sonnel, materials, supplies, equipment, vehicle fuel, utilities, and other services to continue current operations of the school division. This includes inflationary increases for selected accounts, adjustments in other accounts to reflect the increased cost of doing business, reductions to costs from the previous budget year, and changes to restricted grant programs.

Improve Student Achievement – $3.7 Million Increase The budget supports 45.6 new full-time equivalent positions directly serving students—classroom teachers and support positions to open Jordan Springs Elementary School including instructional assistants, nurse, psychologist, guidance counselor, instructional coaches, bus driver, and maintenance technician. Additionally, five new classroom teacher positions are added to support student enrollment growth and students with special educational needs. Instructional assistants supporting elementary students in phonological awareness contracts are extended to a seven hour day.

Asset Preservation and Operations – $39,341 Increase To support facilities maintenance, the budget includes additional funds for capital asset maintenance software for the facilities services department. This software will provide data for planning the scope, timing, and cost of the Capital Asset Plan to maintain facilities.

Appropriation Reserve Due to Budget Adoption Timing – $1.8 Million Increase After the operating budget was approved by the County Board of Supervisors, the Governor of Virginia reduced state funds by $1.8 million for FCPS. These funds were intended for the state's share of a two percent salary increase and additional funds for at-risk and early childhood programs. Those costs were not allocated in the budget due to the funding reduction.

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Operating Fund Expenditures by Program and Function Another way to review School Operating Fund expenditures is by program and function. This fund is divided into nine instructional programs and nine support functions as shown in the chart below. Each program budget includes costs for salaries, benefits, services, materials, and equipment specific to that program. OPERATING EXPENDITURES BY PROGRAM FY 2021 FY 2021 APPROVED APPROVED CHANGE FY 2020 FY 2021 OVER FY 2020 Instructional Programs Regular Education $ 95,172,520 $ 96,804,087 $ 1,631,567 Special Education $ 24,889,902 $ 25,598,650 $ 708,748 Career & Technical Education $ 8,656,908 $ 8,725,671 $ 68,763 Gifted and Talented $ 1,017,693 $ 1,144,889 $ 127,196 Other $ 2,091,190 $ 3,986,848 $ 1,895,658 Summer $ 171,550 $ 171,550 $ - Adult Division $ 16,958 $ 17,200 $ 242 Preschool $ 450,000 $ 452,906 $ 2,906 Community Services $ 721,000 $ 757,841 $ 36,841 Subtotal $ 133,187,721 $ 137,659,642 $ 4,471,921 Instructional Programs Support Programs Administration $ 4,859,149 $ 4,743,587 $ (115,563) Attendance and Health $ 2,897,008 $ 2,948,001 $ 50,993 Pupil Transportation $ 10,397,470 $ 10,689,528 $ 292,058 Operations and Maintenance $ 15,190,223 $ 15,746,640 $ 556,417 School Nutrition Preschool $ 5,000 $ 8,000 $ 3,000 Facilities $ 395,324 $ 432,279 $ 36,955 Fund Transfers $ 548,707 $ 1,127,364 $ 578,657 Technology $ 8,500,947 $ 8,405,381 $ (95,566) Contingency Reserve $ - $ - $ - Subtotal $ 42,793,828 $ 44,100,779 $ 1,306,951 Support Programs Total $ 175,981,549 $ 181,760,421 $ 5,778,872

As illustrated below, seventy-six percent of school operating funds support the instructional programs.

Where the funding goes

5% Instruction 4% 6% Operations & 9% Maintenance $181.8 Pupil Million Transportation Technology 76%

All Other

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Other Funds Debt Service Fund $17,957,232 This fund pays the principal and interest to finance school construction. County transfer of funds is the primary revenue source for this fund. FCPS participates in the Qualified School Construction Bond (QSCB) federal program, which provided a near interest free loan for the construction of the new transportation facility. The debt service level increased due to two active construction projects—Jordan Springs Elementary School and the replacement Robert E. Aylor Middle School.

DEBT SERVICE FUND REVENUE AND EXPENDITURES FY 2021 APPROVED APPROVED CHANGE FY 2020 FY 2021 OVER FY 2020 BEGINNING BALANCE 23,282 297,059 273,777 REVENUES: State Lottery Proceeds - - School Construction - - VPSA Credits 179,505 298,860 119,355 Federal Govt. (QSCB) 275,782 275,782 - County General Fund Transfer 16,248,300 17,085,531 837,231 Total Funds Available $ 16,726,869 $ 17,957,232 $ 1,230,363 EXPENDITURES: Payment of Principal 11,195,047 12,078,540 883,493 Payment of Interest 5,506,822 5,853,692 346,870 Miscellaneous Charges 25,000 25,000 - Transfer to School Operating Fund - - - Reserve for Future Debt - - - Total Disbursements $ 16,726,869 $ 17,957,232 $ 1,230,363 FUND BALANCE -

Capital Projects Fund $4,415,900 This capital projects fund provides for major maintenance projects that are not supported by the School Operating Fund and are not considered major construction projects. County general fund monies, proffers, and/or the school division’s carryforward funds from previous years are typically the sources of revenue for this fund. For FY 2021, the county is providing $3.7 million for facility asset replacement projects at Apple Pie Ridge Elementary, Dowell J. Howard Center, James Wood Middle School, Middletown Elementary, Orchard View Elementary, and Sherando High School. A prior year carryforward amount of $700,000 to support projects begun in the prior year but not completed make up the balance of this fund.

Construction Fund This capital projects fund provides for all new facilities and most facility renovations and expansions. Projects are approved through the Capital Improvement Plan process and are then approved for funding by the County Board of Supervisors. Funding for the projects is provided primarily through the sale of Virginia Public School Authority bonds. Virginia Literary Fund monies are available under certain circumstances, and local funding also can be used in lieu of incurring debt. The Capital Improvement Plan lists the following construction projects as top priorities: construction of the fourth high school, James Wood High School renovations and addition, Armel Elementary School addition and renovation,

21 Executive Summary

Indian Hollow Elementary renovation, School Board Office renovation and expansion, and Sherando High School renovations and addition. The Capital Improvement Plan has not been funded by the Board of Supervisors. Without funding approval, the plan is stalled. Appropriation for this fund includes active projects approved after the close of FY 2020 and is based on the amount that equals the approved original project cost less expenditures and encumbrances through June 30, 2020. Financial estimates for this fund are included in the Financial Forecasts.

School Textbook Fund $2,871,240, 0.5 positions This special revenue fund provides for the purchase of adopted textbooks to support the curriculum of Frederick County Public Schools (FCPS). It is funded by state revenues and a transfer of county revenues from the School Operating Fund. Miscellaneous revenue from interest and fees for lost or damaged textbooks is also received. Disbursements for textbooks are determined by an adoption schedule set by the Virginia Department of Education. Textbooks planned for adoption in FY 2021 are science at all levels and high school English. The fund also supports a part-time clerical position to coordinate the division’s textbook inventory.

School Nutrition Services Fund $7,581,744, 94.4 positions This special revenue fund provides for all school nutrition services operating and administrative costs. The fund is supported primarily by food sales and federal and state subsidies for the school lunch and breakfast programs. Meal prices remain level with the prior school year. About 50 percent of all students are expected to participate in the school lunch program. Almost 36 percent of all students are eligible for free/reduced priced meals. About 1.6 million meals are served a year in FCPS’ 20 school cafeterias— equating to almost 9,000 meals per day.

Special Grants Fund This special revenue fund accounts for revenue received from designated sources for specified purposes and for which FCPS is fiscal agent. Occasionally, a multi-year or multi-jurisdictional grant will be awarded and will need to be accounted for separately from the Operating Fund. Appropriation for this fund is equal to the fund balance plus any receipts during the fiscal year.

NREP Operating and Textbook Funds $6,271,913, 77.8 positions These fiduciary funds provide for the operation of the Northwestern Regional Educational Programs (NREP), jointly operated and supported by Frederick County, Winchester City, and Clarke County Schools. The program provides an intensive level of special education services to certain students. Billings to the participating localities based on projected student enrollment are the primary revenue sources for this fund. A separate fund is used to account for NREP’s textbooks.

Private Purpose Funds $500,000, 1.0 position These fiduciary funds include two funds—Private Purpose Trust Income Fund and Private Purpose Endowed Trust Fund. These funds account for non-expendable funds provided through private grantors or donors and are restricted for special purposes. Private purpose gifts and donations to the school division, such as the Bright Futures program, are recorded here.

22 Executive Summary

Consolidated Services Fund $3,600,000, 14.0 positions This proprietary, enterprise fund captures maintenance services provided by FCPS facilities services staff to the Frederick County government and to the regional library. This fund also captures financial activities of the vehicle maintenance operation and fueling at the transportation facility located on Route 522 South close to Armel Elementary School. Revenue for this fund is provided by billings to the school division, volunteer fire stations, and other county agencies utilizing the service.

Health Insurance Reserve Fund This proprietary fund accounts for all activity associated with employee health insurance costs and premiums. Under a self-insured program, the insured group pays for all medical and dental costs. Premiums are set based on anticipated claims for the upcoming plan year. If claims exceed premium contributions, the fund balance can be used to offset the deficit. Medical and dental claims for FY 2021 are anticipated to be about $21.0 million. There is no premium increase for the employer or employee. Beginning in FY 2021, FCPS has partnered with CareTeam to provide an on-site health clinic for FCPS employees and their dependents participating in the group health insurance plan. Through this partnership, the division can offer employees and their dependents quality care at a reduced cost to the employee and the school division. Appropriation for this fund is equal to the fund balance plus any receipts during the fiscal year. Financial estimates for this fund are included in the Financial Section.

Linking Budget Dollars to Student Achievement FCPS continues to connect the budget with new instructional initiatives that improve student achievement, engagement, and accountability. New initiatives include: • opening a new Jordan Springs Elementary to reduce class size and provide instruction in a modern, collaborative learning facility—$2.8 million • more classroom teachers to address class sizes and student enrollment growth—$0.7 million • continued professional learning to address student mental health—$0.1 million

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Financial Forecasts Financial forecasts are calculated for all funds classified as general and are based on future needs for operations and capital planning financing. Expenditure amounts represented are a financial translation of long term plans and needs of the school division. The following table combines financial forecasts for the School Operating, School Debt Service, School Capital Projects, School Construction, School Textbook, and School Nutrition Services Funds.

Forecasted expenses by fund are based on needs and limited assumptions. Forecasted increases for School Operating, School Textbook, and School Nutrition Services Funds include a 3.0 percent salary increase for staff, staffing increases to support student enrollment growth projections, additional funds for replacement technology equipment and school buses, and standard inflationary increases for materials, services, and supplies. School Construction Fund estimates construction for the replacement Robert E. Aylor Middle School will be completed June 30, 2021. The Capital Improvement Plan (CIP) as of June 2020 is not approved or funded by the County Board of Supervisors.

Forecasted revenues by source are adjusted to accommodate forecasted expense pressures. State revenues are forecasted based on projected student enrollment growth and SOQ rebenchmarking in fiscal year 2023. County revenues are forecasted upward to finance the Capital Improvement Plan construction projects, support the forecasted increases in the School Operating Fund, Capital Asset Preservation Plan under the School Capital Projects Fund, and provide support to the School Textbook Fund based on adoption schedules. Bond proceeds revenues fluctuate based on the Capital Improvement Plan funded construction timeline.

GOVERNMENTAL FUNDS – FINANCIAL FORECASTS FY 2021 APPROVED/ FY 2022 FY 2023 FY 2024 ESTIMATED FORECAST* FORECAST* FORECAST* School Operating $ 181,760,421 $ 188,071,440 $ 193,635,671 $ 200,188,017 School Debt Service $ 17,957,232 $ 18,989,718 $ 17,430,688 $ 16,062,772 School Textbook $ 2,871,240 $ 2,261,103 $ 1,528,609 $ 2,151,221 School Nutrition Services $ 7,581,744 $ 7,757,858 $ 7,936,586 $ 8,120,677 School Capital Projects $ 4,415,900 $ 9,008,700 $ 7,842,000 $ 8,724,000 School Construction Fund** $ 43,378,879 $ - $ - $ - General Fund Expenditures Total $ 257,965,416 $ 226,088,819 $ 228,373,554 $ 235,246,687 Federal $ 8,758,224 $ 8,849,504 $ 8,943,521 $ 9,040,360 State $ 88,229,559 $ 90,849,718 $ 95,257,956 $ 98,056,864 County $ 109,109,365 $ 119,422,570 $ 117,852,833 $ 121,120,355 Other $ 3,925,602 $ 4,010,436 $ 4,095,147 $ 4,182,399 Bond Proceeds $ 16,400,000 $ - $ - $ - Fund Equity/Transfers $ 31,542,666 $ 2,956,591 $ 2,224,097 $ 2,846,709 General Fund Revenues Total $ 257,965,416 $ 226,088,819 $ 228,373,554 $ 235,246,687 *Standard methodologies were used to project FY22 through FY24. Economic conditions and enrollment changes could cause significant variances from the projection. **FY21 through FY24 School Construction Fund is a projection based on the close of the 2020 fiscal year. These estimates are not included in the FY21 appropriated amounts. As of the date of this publication, the Board of Supervisors have not approved funding to support the Capital Improvement Plan accounted for in the School Construction Fund. The top capital project is fourth high school construction.

24 Executive Summary

Informational Student Enrollment Trends and Forecasts Enrollment Changes The single greatest determinant of funding and resource needs for any school division is the size of its student enrollment. Spending on salaries and benefits, materials and supplies, and capital infra­structure is often derived directly or indirectly from student population.

The number of students by grade level and by year is analyzed for migration and attrition statistics. Projections are prepared using historical data applied to the trends. Other factors that drive enrollment projections include live birth rate information and population growth in the county.

Student enrollment at all levels is projected to change over the next few years. Growth at the high school level and current capacity concerns will impact funding requests and the timing of constructing the fourth high school.

FCPS STUDENT MEMBERSHIP Change in PS, P3, Grades Grades Grades Total Fiscal Year and P4 PK K-5 6-8 9-12 Total Students 2017 78 5,934 3,109 4,203 13,324 158 2018 69 54 5,951 3,199 4,294 13,567 243 2019 76 54 5,972 3,249 4,294 13,645 78 2020 83 54 6,085 3,354 4,338 13,915 270 2021P 85 54 6,161 3,430 4,427 14,158 243 2022P 87 54 6,314 3,371 4,562 14,388 230 2023P 90 54 6,418 3,356 4,659 14,577 189 2024P 92 54 6,474 3,378 4,782 14,780 203 2025P 94 54 6,476 3,519 4,809 14,952 172 P = projected enrollment Totals may not add correctly due to rounding.

Change in Total Students from 2017 to 2021 300 270 250 243 243

200 158 150

100 78

50

0 2017 2018 2019 2020 2021P

P = projected PreK students included in total beginning in FY 2018

25 Executive Summary

Student Demographics Changes in student enrollment, especially when they are rapid changes, create challenges for school divisions. In the past five years, the overall FCPS student population has grown by over six percent while during the same period the state student population has grown by just 1.4 percent. County-wide projections for population and housing growth indicate robust increases in student population within the next decade. Additionally, significant variations in specific populations continue to occur, which generate the need for reallocation of existing or request for new resources to accommodate the service needs of those students.

Economically Disadvantaged The number of students eligible for free or reduced-priced lunch programs (economically disadvantaged students) has increased by about 12.0 percent during the last five years. About 4,900 students are expected to be eligible for free or reduced-priced meals in FY 2021. Percentage of Students Eligible for Free, Reduced, or Full-Priced Meals 100%

80% 66.1% 66.8% 67.3% 65.5% 65.7% 64.6% 60% % Full % Reduced 40% 6.6% 6.2% 6.7% 5.9% 5.8% 6.4% % Free 20% 27.3% 27.0% 26.0% 28.6% 28.4% 29.0% 0% 2015 2016 2017 2018 2019 2020

Student Subgroups While the total number of students grew by 6.3 percent in the past five years, those receiving language instruction for English language learners and immigrant students grew by 3.7 percent. A total of 839 students received these services in FY 2020. This group requires more complex services and additional staffing, space, and funding. The percentage of students receiving special education services is growing. FCPS served 1,892 special education students in FY 2020, an increase of 22.3 percent compared to five years ago.

Change in FCPS Student Membership in the Past Five Years

13,092 All Students 6.3% change 13,915

10,736 Regular Education 4.2% change 11,184

Free/Reduced Meal 4,438 12% change Eligibility 4,969

809 English Learners 3.7% change 839

1,547 Special Education 22.3% change 2015 2020 1,892

26 Executive Summary

Student Diversity The chart below illustrates changes in FCPS’ student diversity since 2016.

FCPS Student Diversity 4% FY 2016 and FY 2020 5% 100% 1% 2% 80% Other

60% 76% 71% Asian White 40% Hispanic 20% Black 15% 20% 0% 4% 4% 2016 2020

Local Taxes School divisions in Virginia do not have taxing authority and are fiscally dependent on the local government. Frederick County government collects taxes on real estate, personal property, and other sources and transfers a percentage of those revenues to FCPS for operations and debt service. There is no formal agreement on the percentage of collected revenues that are transferred to FCPS. Historically and currently, 57 percent of new local tax revenues are transferred to schools.

Real estate taxes are one of the largest revenue generators for Frederick County. The following table lists ten years of real estate tax rates and the impact of the rate on the average residential home in Frederick County. REAL PROPERTY TAX % INCREASE RATE, DOLLARS MEAN ASSESSED % INCREASE OR OR FISCAL PER $100 VALUE OF DECREASE DECREASE TAX YEAR YEAR VALUE PROPERTY MEAN TAX BILL ASSESSED VALUE TAX BILL 2009 2010 $ 0.510 $ 171,500 $ 875 -11% -11.3% 2010 2011 $ 0.545 $ 178,000 $ 970 4% 10.9% 2011 2012 $ 0.585 $ 183,000 $ 1,071 3% 10.4% 2012 2013 $ 0.585 $ 197,000 $ 1,152 8% 7.7% 2013 2014 $ 0.585 $ 207,600 $ 1,214 5% 5.4% 2014 2015 $ 0.560 $ 220,500 $ 1,235 6% 1.7% 2015 2016 $ 0.600 $ 225,961 $ 1,356 2% 9.8% 2016 2017 $ 0.600 $ 247,417 $ 1,485 9% 9.5% 2017 2018 $ 0.610 $ 248,084 $ 1,513 0.3% 1.9% 2018 2019 $ 0.610 $ 264,112 $ 1,611 6.5% 6.5% Source: Frederick County 2019 Comprehensive Annual Financial Report Mean home values provided by the Frederick County Commissioner of Revenue

For FY 2021, the Frederick County Board of Supervisors approved a budget based on a real estate tax rate at $0.61 per $100 of assessed value and a personal property tax rate at $4.86 per $100 of assessed value.

27 Executive Summary

Personnel Changes As the largest employer in Frederick County, FCPS plans to employ 2,341.3 full-time equivalent (FTE) employees in FY 2021. Over two-thirds of these employees reside in the Winchester-Frederick County area.

Eighty-two percent of all staff are school-based teachers and support positions. The number of school- based instructional and support positions is increasing due to student enrollment growth and opening Jordan Springs Elementary School. Those new positions include classroom teachers, instructional assistants, nurse, counselor, instructional coaches, assistant principal, clerical, custodians, psychologist, and school nutrition workers. Pupil transportation positions include bus drivers, bus aides, mechanics, and transportation administration. Pupil transportation positions are increased by one new bus driver. Non-­school-based positions include the superintendent, assistant superintendents, instructional and administrative directors and supervisors, specialists, analysts, information technology, maintenance technicians, and clerical support. Non-school-based positions are increased by a maintenance technician.

ADJUSTED APPROVED CHANGE DIVISION STAFFING – FY 2020 FY 2021 FY20 To FY21 ALL FUNDS AMOUNT PERCENT AMOUNT PERCENT AMOUNT PERCENT School-Based 1,875.9 81.8% 1,922.3 82.1% 45.4 2.4% Pupil Transportation 261.0 11.4% 262.0 11.2% 1.0 0.4% Non-School-Based 156.0 6.8% 157.0 6.7% 1.0 0.6% Total Positions 2,292.9 100.0% 2,341.3 100.0% 47.4 2.0%

All Positions - FY 2021

7% 11%

82%

School-based Pupil Transportation Non-School-Based

28 Executive Summary

Benchmark Data Per-pupil Expenditure Frederick County Public Schools’ per pupil expense continues to be lower than the regional and state averages as illustrated in the following graph. Preliminary projections show an FCPS per pupil expense of $13,597 for FY 2021 compared to a projected $13,329 for FY 2020. The per pupil expenditure calculation is based on Virginia Department of Education’s definition of operations. All school divisions report expenditures in a standardized format, and division comparative information is provided in the Virginia Superinten­dent’s Annual School Report. Operations include regular day school, food services, summer school, adult education, and other educational programs. Operations in this calculation do not include the cost of facilities, debt service, and capital outlay for additions

Comparative Cost Per Pupil 18,000 15,277 16,000 14,091 13,782 14,000 12,250 12,889 12,931 13,012 11,176 11,619 12,000 10,000 8,000 6,000 4,000 2,000 - Winchester County Warren Loudoun Shenandoah Fauquier Frederick Average Regional Average County Clarke County County County State County City

Source: FY 2019 Annual School Report, Virginia Department of Education

Student to Teacher Ratio The chart below compares the student to teacher ratio for FCPS and surrounding school divisions. All school divisions report the number of teachers and student membership to the Virginia Department of Education in a standardized format. The Virginia Department of Education consolidates elementary, middle, and high school data into two categories: elementary for kindergarten through seventh grades and secondary for eighth through twelfth grades.

STUDENT TO TEACHER RATIO ELEMENTARY SECONDARY GRADES k-7 GRADES 8-12 Winchester City 12.7 9.5 Clarke County 12.3 11.9 Warren County 13.2 11.7 Loudoun County 13.3 12.2 Shenandoah County 10.9 12.9 Fauquier County 12.3 10.7 Frederick County 13.9 12.1 Regional Average 12.7 11.6 State Average 13.0 12.5 Source: FY 2019 Annual School Report, Virginia Department of Education

The student teacher ratio is calculated based on the number of classroom, homebound, media, and technology resource teachers. Librarians and guidance counselors are not included in the ratio.

29 Executive Summary

Average Class Size The following chart illustrates FCPS average class sizes by elementary grades K-5, middle grades 6-8, and high grades 9-12 since the fall of 2012.

Average Class Sizes 25.0 24.0 23.0 22.0 21.0 20.0

Student to Student Ratio Teacher 19.0 18.0 2012 2013 2014 2015 2016 2017 2018 2019 Elementary 20.6 20.3 20.4 20.2 20.2 20.4 19.9 19.1 Middle 24.3 23.5 22.5 22.1 22.6 24.5 22.8 23.1 High 22.3 23.7 22.3 23.2 23.0 23.2 22.3 22.1

FCPS Ranked 34th in Virginia The 2020 Best School Districts ranking by Niche is based on academic and student life data from the U.S. Department of Education along with test scores, college data, and ratings collected from Niche users including parents and students. FCPS is ranked number 10 of 132 districts with the best teachers and 18 of 132 for the best place to teach.

NICHE SCHOOL DISTRICT RANKING 2020

School District State Ranking Overall Niche Grade Academics Teachers Clubs & Activities Diversity College Prep Health& Safety Admini- stration Food Sports Resources & Facilities Loudoun County 4 A A A A A- A+ A- B+ C+ A+ B+

Fauquier County 30 B+ B+ B B+ B A- B+ B- C+ A- B-

Frederick County 34 BB A- BB A- B- B C+ A B- Winchester City 35 BB B- AAA A- C+ CA B+

Clarke County 50 BB C+ B B- B+ A- C B- AB

Shenandoah County* C+ B- C+ B- BBCC C+ A- B-

Warren County* C C+ C- B- BB C+ BC B- B-

*State ranking not provided Source: Niche 2020 School and District Rankings (niche.com)

30 Executive Summary

Changes in Debt Debt provides the resources to build new schools and renovate or expand current school buildings. These financial resources must be repaid with interest in the future. This debt commits future county funds to pay the principal and interest on school mortgages. As debt to finance school construction increases, county funds are more limited for day-to-day operating costs accounted for in the School Operating Fund. Planning and Accounting of Debt The Capital Improvement Plan (CIP) is the management tool used for planning the capital improvement projects needed to instruct students adequately. The School Construction Fund is used to account for the resources used for the acquisition and construction of major capital facilities. The School Construction Fund is funded primarily by the sale of bonds. Financing of these bonds—principal and interest—is accounted for under the School Debt Service Fund. Changes in Debt Service Most debt service payments made by FCPS are structured over twenty years with level principal payments, thereby reducing the debt service for existing bonds annually. Significant changes in the debt service for any given fiscal year is driven by the sale of new bonds requiring additional interest and principal payments or by the retirement (pay-off) of any existing bonds. To increase debt spending, FCPS submits requests to the Frederick County Board of Supervisors who approves the amount of funds available for the construction of new schools each fiscal year. Debt Management Policy and Existing Debt Virginia does not impose a debt limitation on Frederick County. However, Frederick County adopted key debt ratio guidelines including debt to assessed value should not exceed 0.75–1.75%. At the close of FY 2019, the county's ratio of debt to assessed value was 1.31%. Where approved justification is provided, debt for capital construction and improvements are repaid over the expected useful life of the project, and long-term debt is not used for current operations. Total existing debt prior to FY 2021 for the school division was $135.4 million. Future Debt and Trends To finance existing debt and active school construction projects, debt service payments will peak in FY 2022 and decline beginning in FY 2023. This includes final borrowings to construct the replacement Robert E. Aylor Middle School. Debt service for new projects as listed on the Capital Improvements Plan for 2021-2025 are not included in the forecast because the plan is not funded by the Board of Supervisors. Future construction projects listed on the CIP are stalled without funding approval anticipated.

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Overview Frederick County Public Schools (FCPS) is the 20th largest of 132 school divisions in the Commonwealth of Virginia. The organizational structure of FCPS is focused on meeting the needs of 14,158 students while managing its 19 schools, two centers, and three support buildings. The school division supports the student residents of Frederick County, located in the northwest region of the Commonwealth of Virginia. Students beginning with kindergarten through twelfth grade are served. The school division also serves preschool students who are educationally at risk. The school division is regulated by Virginia statutes and operates as a fiscally-dependent agency of the Frederick County government to provide a free and appropriate education to the county’s student residents. Virginia Statutes and Regulations Within Virginia, each school division is governed by the Constitution of Virginia. Its Code, under Article VIII, Section 1, states, “The General Assembly shall provide for a system of free public elementary and secondary schools for all children of school age throughout the Commonwealth, and shall seek to ensure that an educational program of high quality is established and continually maintained.”

Standards of Quality are explained in Section 22.1-253.13:1 of the Code of Virginia and place responsi­ bility for the establishment of standards to maintain an educational program of quality with the Board of Education, subject to revision only by the General Assembly.

Standards of Learning are explained in Section 22.1-253.13:1. It states, “The Board of Education shall establish educational objectives known as the Standards of Learning, which shall form the core of Virginia’s educational program, and other educational objectives, which together are designed to ensure the development of the skills that are necessary for success in school and for preparation for life in the years beyond.”

Standards of Accreditation are explained in Section 22.1-253.13:3. It states, “The Board of Education shall promulgate regulations establishing standards of accreditation pursuant to the Administrative Process Act which shall include, but not be limited to, student outcome measures, requirements and guidelines for instructional programs and for integration of education technology into such instructional programs, administrative and instructional staffing levels and positions, including staff positions for supporting educational technology, student services, auxiliary education programs such as library and media services, course and credit requirements for graduation from high school, community relations, and the philosophy, goals, and objectives of public education in Virginia.” Legal Authority and Governance Structure Frederick County Public Schools is governed by an elected seven member School Board representing six magisterial districts and one county “at-large” member. Serving staggered four-year terms, School Board members are charged by the Commonwealth of Virginia and regulated by the Virginia Board of Education to provide and operate the public schools in Frederick County. The School Board sets policies to ensure proper administration of the school division and is responsible for the division’s financial matters as an agency of the appropriating body, the Frederick County Board of Supervisors. The School Board does not have taxing authority. The Frederick County Board of Supervisors appropriates funds for the school division’s budget, which may be approved in total or by state-determined categories.

The School Board appoints the superintendent of schools. The superintendent of schools works closely with assistant superintendents and leadership staff to oversee the daily operations of schools and support centers.

35 Organizational Section

Schools are supported by fifteen departments providing a broad range of services including instruction curriculum development and support, student support, special instructional services, professional learning, reporting and evaluation, pupil transportation, facilities services, human resources, finance, technology, operations and hearings, planning and development, policy and public information, and school nutrition services.

FCPS Organizational Chart Frederick County Public Schools

Frederick County School Board

Assistant Superintendent for Superintendent of Schools Assistant Superintendent Administration for Instruction

Executive Director Executive Director Coordinator of of Human Resources of Finance Policy and Communications Director of Elementary Instructional Services

Asst. Director Asst. Director Instructional Supervisors K-5 of Human of Finance Resources

Director of Information Director of Middle and Secondary Director of Transportation Technology Instructional Services Principals and Coordinating Content Supervisors and Director of Facilities Services Asst. Director Asst. Director Administrators Coordinators of Information Technology Asst. Director of Technology Services Assistant Director of Student Support Services Facilities Services Principals Supervisor Supervisor Supervisor Assistant Director of Software Network Supervisor of Operations of ITCS Student Support Services and Hearing Officer Support Services Teachers

Coordinator of Planning Director of Special Instructional Services and Development Asst. Director of Special Instructional Services Supervisor of Construction

Director of Reporting and Program Evaluation Supervisor of School Nutrition Services

36 Organizational Section

Frederick County School Board Members Mr. Jay W. Foreman, Chairman, Shawnee District—Award-winning author, public speaker, and adjunct instructor at Lord Fairfax Community College. Bachelor of Arts in psychology from Shenandoah University. Former commercial loan officer and business analyst. Past president and past fundraising chairman of Winchester Exchange Club; past board member of Big Brothers/Big Sisters; past board member of the Youth Development Center; past treasurer, Top of Virginia Builders Association; past board member of Child/Parent Center; current board member of Shenandoah University Alumni Association; and current board chairman for Grace Community Church. Student Conduct and Support Committee and Buildings and Grounds Committee member; alternate member of the Frederick County Developmental Impact Model Committee and Frederick County Comprehensive Plans Subcommittee Community Facilities Group. Former Instruction Committee chair and member; former Personnel Committee chair and member; and former member of the Frederick County Educational Foundation, Finance Committee, and Instruction Committee. Married to Angie Foreman; son, Tyler, attends Frederick County Public Schools, and daughter, Kayla, graduated from Frederick County Public Schools in June 2019. School Board service since January 2015; current School Board term through 2021.

37 Organizational Section

Mr. Michael A. Lake, Vice Chairman, Gainesboro District—Retired from the federal government in 2002 after 32 years of service. Associate’s degree in data processing; computer programming certification, Control Data Institute. Board member, Lord Fairfax Community College. James Wood High School assistant football coach 2005 through 2010; member of the Frederick County Tax Equalization Board in 2005, 2009, and 2011. Finance Committee and Student Conduct and Support Committee chair. Former Finance, Buildings and Grounds, Student Conduct and Support Committee, and Instruction Committee member. Former member of the Frederick County Educational Foundation and Personnel Committee. Married to wife, Helen, for 39 years. One daughter and one grandson. Hobbies are playing golf, riding motorcycles, and working on cars. Elected to the Frederick County School Board in November 2011; School Board service 2012 through present. Current School Board term through 2023.

Mr. Brandon H. Monk, Back Creek District—Leadership and education consultant. Former high school agriculture teacher and FFA advisor. Bachelor of Science in Agribusiness Management, Virginia Tech. Workforce Development Committee member, Associated Equipment Distributors Foundation board member, Frederick County Farm Bureau member, and Frederick County Extension Leadership Council member. Former board member of the Advance CTE – State Leaders Connecting Learning to Work, past board member of the Virginia Association for Career and Technical Education, past member of the Virginia Association of Agricultural Educators, and former member of the National Association of Supervisors of Agricultural Education. Current member of the Frederick County Public Schools Instruction Committee and Personnel Committee. Graduate of Frederick County Public Schools. Elected to the School Board in November 2019. Current School Board term through 2023.

Mr. Brian J. Hester, Member at Large—Vice President, Commercial Banker. Bachelor of Arts in Accounting from Randolph Macon College. Master of Business Administration from Shenandoah University. Graduate of Virginia Bankers School of Bank Management and also BB&T’s Banking School at Wake Forest University. Current executive board member of Grafton Integrated Health Network, Co-Chair of Shenandoah Apple Blossom’s Gentlemen’s Luncheon. Current member of The Rotary Club of Winchester. Past president of Rotary Club of Winchester’s Latest. Past board member of the Evan’s Home of Winchester, the Salvation Army, and Healthy Families of Winchester. Current Finance Committee, Student Conduct and Support Committee, and Frederick County Educational Foundation member. Married to Mary Kay Hester. Daughters Anna and Elise attend Frederick County Public Schools, and youngest daughter, Brynley, will attend in a year. Lifelong resident of Winchester/ Frederick County; graduate of John Handley High School, 2000. Elected to the School Board, November 2019. Current School Board term through 2023.

Mr. Bradley A. Comstock, Opequon District—Top Producing Realtor® in the Northern Shenandoah Valley. Former elementary school teacher who taught for 11 years in grades K-5, 9 of those years for Frederick County Public Schools. Bachelor of Arts in Religious Studies from the University of Virginia, Master of Teaching for Early Childhood/Elementary Education Grades PreK-6 from Virginia Commonwealth University. Member of the Instruction, Personnel, and Buildings and Grounds Committees. Married to Traci Comstock, an employee of Frederick County Public Schools. One daughter who attends Frederick County Public Schools, and one son who will attend in the future. Elected to the School Board November, 2019. Current School Board term through 2023.

38 Organizational Section

Mrs. Shontyá C. Washington, Redbud District—Software and Systems Engineer. Bachelor of Science in Integrated Science and Technology, James Madison University. Education advocate and volunteer for Frederick County Public Schools including serving in the classroom, coordinator and team manager for Destination Imagination, Special Education Advisory Committee member, and former PTO president and secretary. Current Instruction Committee and Personnel Committee chair and member of the Finance Committee and the Mountain Vista Governor’s School Governing Board. Former Instruction Committee and Student Conduct and Support Committee member. Married to husband, Brian, and have three children attending Frederick County Schools. Elected to the School Board in November 2017. Current School Board term through 2021.

Mr. Frank E. Wright, Stonewall District—Retired, Fire Chief, Winchester Fire and Rescue 1974 through 2010. Fire Science Certification, Lord Fairfax Community College 1976. Former member and chair, City Employee Safety Committee. Former founding member, Lord Fairfax EMS Council’s Critical Incident Stress Debriefing Team. Former President and Commissioner, Babe Ruth Youth Baseball League. Former member, James Wood High School Athletic Association. Former Youth Group Leader, Rockland Community Church. Former member, Frederick County School Board, Shawnee District, 1997. Current Buildings and Ground Committee chair, Frederick County Developmental Impact Model Committee member, and Frederick County Comprehensive Plans and Program Subcommittee Facilities Group member. Former Finance Committee, Personnel Committee, and Frederick County Educational Foundation member. Lifelong resident of Winchester/Frederick County; graduate of John Handley High School, 1974. Married to Sharon Wright (JWHS ’74); one daughter, Kelley (JWHS ’96); and a son, Kevin (JWHS ’98) and six grandchildren. Appointed to the Board in 2013, continuous service since then. Current School Board term through 2021.

Frederick County Public Schools Leadership Team • Dr. David T. Sovine, Superintendent of Schools • Dr. Albert L. Orndorff, Assistant Superintendent for Administration • Dr. James F. Angelo, Assistant Superintendent for Instruction • Mrs. Patty D. Camery, Executive Director of Finance • Mrs. Jennifer W. Rydholm, Executive Director of Human Resources • Mr. Steve E. Edwards, Coordinator of Policy and Communications and Clerk of the Frederick County School Board

39 Organizational Section

Facility Directory Frederick County Public Schools is projected to serve 14,158 students and manage twelve elementary schools, four middle schools, three high schools, one career and technical education center/alternative learning center, and is the fiscal agent of Northwestern Regional Educational Programs (NREP). Other operations are supported by the administration building, pupil transportation center, and facilities services center.

Apple Pie Ridge Elementary Middletown Elementary James Wood High 349 Apple Pie Ridge Road 190 Mustang Lane 161 Apple Pie Ridge Road Winchester, VA 22603 Middletown, VA 22645 Winchester, VA 22601 540-662-4781 540-869-4615 540-667-5226 Principal–Megan Dodd Principal–Kristi Diminuco Principal–Sam Gross

Armel Elementary Orchard View Elementary Millbrook High 2239 Front Royal Pike 4275 Middle Road 251 First Woods Drive Winchester, VA 22602 Winchester, VA 22602 Winchester, VA 22603 540-869-1657 540-869-8642 540-545-2800 Principal–Heather Miller Principal–Crystal Nicola Principal–Joanne Altendorf

Bass-Hoover Elementary Redbud Run Elementary Sherando High 471 Aylor Road 250 First Woods Drive 185 South Warrior Drive Stephens City, VA 22655 Winchester, VA 22603 Stephens City, VA 22655 540-869-4700 540-678-1868 540-869-0060 Principal–Darren Thomas Principal–Joseph Strong Principal–John Nelson

Dowell J. Howard Center Evendale Elementary Stonewall Elementary 156 Dowell J. Circle 220 Rosa Lane 3165 Martinsburg Pike Winchester, VA 22602 Winchester, VA 22602 Clear Brook, VA 22624 540-662-8997 540-662-0531 540-662-2289 Administrator–Janelle Ball-Brooks Principal–Michael Daddario Principal–Mark Weisbrod Northwestern Regional Gainesboro Elementary Admiral Richard Byrd Middle Educational Programs 4651 North Frederick Pike 134 Rosa Lane 481 Senseny Road Winchester, VA 22603 Winchester, VA 22602 Winchester, VA 22602 540-888-4550 540-662-0500 540-665-0103 Principal–Patricia Black Principal–Dr. Jessica Nail Administrator–Ralph Reese

Greenwood Mill Elementary Frederick County Middle Administration Building 281 Channing Drive 4661 North Frederick Pike 1415 Amherst Street Winchester, VA 22602 Winchester, VA 22603 Winchester, VA 22601 540-667-7863 540-888-3101 540-662-3888 Principal–Jennifer Muldowney Principal–Jerry Putt Superintendent–Dr. David Sovine

Indian Hollow Elementary James Wood Middle Facilities Services 1548 North Hayfield Road 1313 Amherst Street 280 Woodbine Road Winchester, VA 22603 Winchester, VA 22601 Clearbrook, VA 22624 540-877-2283 540-667-7500 540-667-4865 Principal–Sharon Cooley Principal–Grant Javersak Director–Timothy Crisman

Jordan Springs Elementary Robert E. Aylor Middle Transportation 315 Flyfoot Drive 901 Aylor Road 3351 Front Royal Pike Stephenson, VA 22656 Stephens City, VA 22655 Winchester, VA 22602 540-542-1601 540-869-3736 540-667-2770 Principal–Justin Raymond Principal–David Rudy Director–John Grubbs

40 Organizational Section reeric ont Scool ocation a Frederick County School Location Map

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41 . Organizational Section

Frederick County At-A-Glance Frederick County is the northernmost point in the Commonwealth of Virginia and borders West Virginia. Frederick County is located about 72 miles northwest of Washington, D.C. The county encompasses 424 square miles and is located at the top of Virginia’s Shenandoah Valley, west of the Blue Ridge Mountains and Shenandoah River.

Frederick County was established in 1738 and named after Frederick Louis, Prince of Wales, the eldest son of King George II of Great Britain. James Wood and George Washington helped survey the wilderness, which eventually became Virginia’s breadbasket. The Civil War raged in the county, as both sides sought to control the farms, roads, and rails of the lower Valley. Peace and emancipation were good for the county. Industry and large-scale apple growing flourished after the war, supported by strong transportation systems, and the local population continued to grow. In 1924, the first Shenandoah Apple Blossom Festival was held in the county’s seat of Winchester. Frederick County's administrator form of government was established in 1971.

According to the U.S. Census Bureau, Frederick County’s 2019 population is estimated to be 89,313—an increase of 13.5 percent since 2010, more than double the state average growth. Unemployment and poverty are below the national average, and the county offers high quality jobs, health care, and education. The per capita personal income in Winchester-Frederick County was $50,802 in 2018 according to the U.S. Department of Commerce Bureau of Economic Analysis.

Frederick County Age Distribution

85 and over 2.0

75 to 84 5.2

65 to 74 9.9

60 to 64 6.9 Frederick County has a 55 to 59 6.8 strong workforce of 25- 45 to 54 13.9 to 54-year old adults. 35 to 44 12.8 About 20 percent of the total population is 25 to 34 11.6

Age Bracket Age school aged. 20 to 24 5.1

15 to 19 6.6

10 to 14 7.1

5 to 9 6.7

Under 5 5.2

Percent of Population Source: U.S. Census Bureau 2018 American Community Survey, 1-Year Estimates

Records indicate that free, public schools were established in the county in 1870 and were operated by four magisterial districts until 1922 when the School Board was created. Today, the School Board has seven members, one member from each magisterial district and one member at-large.

Frederick County Public Schools’ enrollment on September 13, 2019, was 13,915 students, making it the 20th largest school division of 132 divisions in the state. The school division continues to be challenged by increasing student population, the growing diversity of its students, and the need for additional revenues as state revenue on a per student basis declined from pre-recession levels. FCPS is the largest employer in Frederick County with 2,341.3 full-time equivalent positions. The school division is guided by

42 Organizational Section its Strategic Plan, Capital Improvement Plan, and Educational Technology Plan, all of which guide the annual budget plan. The School Board, the superintendent and staff, and the county Board of Supervisors work together in serving every student in the community.

Virginia Average Statistic Frederick County or Rank Population, July 2019 (estimate) 89,313 23rd Population, 2010 78,269 23rd Population growth since 2010 13.5% 6.7% Land Area, square miles 424.0 43rd Persons per square mile, 2010 189.4 202.6 Persons under 18, 2019 23.1% 22.0% White persons not Hispanic, 2019 82.6% 61.5% Persons of Hispanic/Latino origin, 2019 9.1% 9.6% African American persons, 2019 4.6% 19.9% Asian persons, 2019 1.8% 6.9% Unemployment rate, May 2020* 7.6% 10.8% Persons below poverty, 2019 7.0% 10.7% Median household income, 2014-2018 $73,250 $71,564 Owner-occupied housing rate, 2014-2018 77.7% 66.2%

Sources: U.S. Census Bureau QuickFacts and U.S. Bureau of Labor Statistics *Unemployment rate increased due to COVID-19. In March 2020, Frederick County's unemployment rate was 3.1%, and Virginia's unemployment rate was 3.3%. In April 2019, both Frederick County's and Virginia's unemployment rate was 2.4%.

43 Organizational Section

The Planning Process and Documents The major documents listed below result from continuous planning activities initiated through committee meetings, studies, evaluation, and changes in circumstances. The planning process is affected by actions of the Virginia General Assembly, the Virginia Department of Educa­tion, and local governing body funding levels. The Frederick County School Board adopted the 2019-2025 Strategic Plan "Inspire 2025: A Promise for Progress" in May 2019 and includes a new Vision and Mission for FCPS.

The Vision and Mission are reviewed periodically by the School Board.

The Division Strategic Plan is mandated under the Standards of Quality and is based upon the School Board mission and priorities. It provides direction for decisions regarding programs and services. The Comprehensive plan will be plan is addressed by individual school improvement plans and is reviewed annually. updated in spring of 2019. The Educational Technology Plan reflects the School Board’s intent to prepare students for their future Education Technology plan will and to use available technologies throughout the schools and support services that will provide more be updated and approved by SB in November of 2018 effective instruction, increased security and safety, and efficiencies of the community’s resources. This plan will be updated in 2020-2021+.

The Capital Improvement Plan reflects a continuing process of projecting the major building projects and facility needs of the school division over a five-year period.

The Annual Operating Budget provides the annual financial framework that reflects ongoing instructional programs as well as all of the operational support of those programs.

Vision An innovative community where caring relationships and authentic learning inspire all students.

Mission The FCPS community nurtures all learners to realize their dreams and aspirations through: • Meaningful and engaging learning experiences • A collective responsibility for continuous growth • Embracing a culture of diversity and inclusiveness • Fostering and supporting innovative ideas that challenge conventional thinking • A commitment to forward-thinking learning environments

Short-Range Division Comprehensive Plan Planned priorities for FY 2021 are listed below. • Create a learning framework that articulates the FCPS Portrait of a Graduate and establish a system to assess the competencies, as well as the overarching goals of Inspire 2025—$0.5 million. • Identify and implement instruction that engages all students in broader, deeper learning experiences, integrates our Portrait of a Graduate Competencies, and cultivates student interests and passions— $0.5 million. • Engage all students through academic and social-emotional learning experiences supported by strategic and purposeful partnerships. Connect with all families by strengthening two-way communications, relationships, and family engagement—$0.5 million. • Improve safety and security in all buildings—$0.2 million. • Display stewardship of environment and sustainability features in all facilities while also considering enrollment growth.

44 Organizational Section

• Design facilities that are flexible, adaptable, and aimed at student-centered learning experiences. • Nurture a culture of continuous professional learning to refine and expand professional practice and support student growth and development—$0.2 million. 6-20-16

Long Range Division Strategic Plan No updates to Comprehensive The Code of Virginia requires each local school board to adopt a comprehensive, unified, long-range plan Plan per Cindy based on data collection, an analysis of the data, and how the data will be utilized to improve classroom instruction and student achievement. The plan shall be developed with staff and community involvement Sousa, so this and shall include, or be consistent with, all other divisionwide plans required by state and federal laws and section is okay. regulations. Each local school board shall review the plan biennially and adopt any necessary revisions. Prior to the adoption of any divisionwide comprehensive plan or revisions thereto, each local school board shall post such plan or revisions on the division’s internet website if practicable, and, in any case, shall make a hard copy of the plan or revisions available for public inspection and copying and shall conduct at least one public hearing to solicit public comment on the divisionwide plan or revisions.

The Strategic Plan is the primary planning document for Frederick County Public Schools. All other plans are subsidiary to the strategic plan and serve to implement the broad goals outlined within the division plan.

The Frederick County School Board adopted the 2019-2025 Strategic Plan "Inspire 2025: A Promise for Progress" on May 21, 2019, and it included a new Vision and Mission for FCPS. It also outlines FCPS' Portrait of a Graduate and addresses four priority areas: Student Success, Culture, Strategic Partnerships, and High Quality Staff. Portrait of a Graduate The FCPS Portrait of Graduate was developed by a group of parents, students, business/community leaders, and school staff. It represents the competencies needed for students to be successful and "life ready" regardless of what they choose to pursue after earning their high school diploma.

Communication Convey thoughts and ideas using oral, written, and nonverbal skills in a variety of forms and contexts. Listen, read, and observe to understand and decipher meaning, including knowledge, values, attitudes, and intentions. Exchange ideas for a range of purposes and audiences (i.e., to inform, instruct, motivate, persuade, learn, develop relationships, etc.).

Collaboration Honor and leverage strengths of group members to build collective commitment and action. Enrich the learning of both self and others via cooperative efforts. Seek, contribute, and respond to feedback to achieve collective outcomes. Elicit diverse perspectives and contributions. The greater good, common ground, and compromise are vital concepts related to this competency.

Learning How to Learn Embrace curiosity to experience new ideas. Possess the desire to seek new knowledge and understanding. Seek divergent perspectives in order to broaden and/or refine knowledge. Discover the joy of learning for its own sake, as an outcome in itself, rather than just as a means to another outcome. Failure, errors, mistakes, and self-monitoring are necessary components for growth.

Social and Cultural Empathy Accurately imagine and internalize the thoughts, feelings, and perspectives of others as a means of connection and compassion. Demonstrate curiosity, sensitivity, and concern about the plights of others in order to deepen understandings and relationships through direct interaction. Embrace the differences

45 Organizational Section between people, societies, and nations, and the opportunities those differences present for learning and growth. Seek where there is commonality, as a way of demonstrating the shared humanity in all of us.

Flexibility, Adaptability, and Resilience Work effectively in a climate of ambiguity and changing priorities. Demonstrate understanding that there is often more than one way to achieve an outcome, and that there may be more than one outcome that achieves understood interests. Exhibit agility in thoughts and actions. Respond productively to feedback, setbacks, and constructive criticisms. Understand, negotiate, and balance diverse views and beliefs to find common ground. Success is not final, and failure is not fatal.

Creativity and Innovation Demonstrate originality, imagination, and new ways of thinking about ideas. Transcend traditional ideas, rules, patterns, and relationships to develop new and meaningful interpretations. Translate new ideas into viable solutions that have value to others. Hold value outside of self. Understand the risks involved with presenting new ideas, but also the potential rewards of doing so.

Critical Thinking and Problem Solving Identify authentic challenges and analyze information to deepen thinking across subjects and disciplines. Evaluate and question evidence, arguments, claims, beliefs, and opposing perspectives to interpret information, draw conclusions, and pose solutions. Reflect on learning experiences, decision-making processes, and outcomes to make necessary adjustments.

2019-2025 Strategic Plan Inspire 2025: A Promise for Progress Inspire 2025 was developed using a collaborative process that engaged parents, students, business and community leaders as well as teachers and school administrators. The four main goals of the plan are student success, culture, strategic partnerships, and high quality staff. Each goal and its objectives are detailed below.

Goal 1: Student Success FCPS promises each and every student learning experiences grounded in high expectations, personalized to student needs and interests, tailored to inspire passion and challenge thinking, and backed by necessary learning supports today, so that each and every student is ready to pursue the dreams and opportunities of tomorrow. • FCPS will create a Learning Framework that articulates our Portrait of a Graduate from Pre-K through 12th grade by the fall of 2020—$0.2 million estimated cost including contracted services and planning time. • FCPS will design and establish a Pre-K-12 system to assess the Portrait of a Graduate competencies by the fall of 2022. • By 2022, FCPS will implement instruction that integrates the vital components of the FCPS Learning Framework in curriculum for meaningful, purposeful educational experiences.

Goal 2: Culture FCPS is a learning organization where students and staff thrive in safe, supportive, nurturing environments, motivated by a culture of continuous growth so that each and every student becomes a contributing citizen in our global society. • All staff will have regular opportunities to collaborate with both their job-alike peers and interdisciplinary peers by the fall of 2020.

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• FCPS will nurture a culture of continuous professional learning to refine and expand professional practices and support student growth and development by 2022. • FCPS will promote an engaged learning community characterized by trust and belonging, which values diverse perspectives and encourages individual voice and choice by 2020. • Collect and analyze data across our education system to monitor progress on the goals of Inspire 2025 and adjust as needed.

Goal 3: Strategic Partnerships FCPS will support students and staff through meaningful, authentic learning experiences and a focus on overall well being by cultivating strategic, purposeful partnerships with community members, organizations, and families. • By the fall of 2021, FCPS will establish a plan to develop, sustain, and grow strategic and purposeful partnerships. • By the fall of 2021, FCPS will engage all students through academic and social-emotional learning experiences supported by partnerships. • FCPS will connect with all families by strengthening two-way communications, relationships, and family engagement.

Goal 4: High Quality Staff FCPS will be recognized as the preferred school community for individuals who are high achieving, compassionate, committed to continuous improvement, and who are inspired and inspire others. • Create the Portrait of an FCPS Talent Contributor by 2020. • FCPS will enhance recruiting efforts by defining and effectively sharing the FCPS brand by 2020. • By the fall of 2020, complete a comprehensive plan for rewards and recognition that includes a total rewards study with goals and targets for the next five years. • By the fall of 2020, the FCPS Human Resources Department (HR) will create a departmental strategic plan that will include an internal review of current policies, practices, and goals that align with division goals.

Division Educational Technology Plan for FY 2021 Frederick County Public Schools will be implementing new technology initiatives for the 2020-2021 school year. These initiatives are linked to the Division Educational Technology Plan, which is designed to help students and staff develop the skills needed to live and work in an increasingly technologically advanced world. The initiatives for FY 2021 include: • Complete the Division Educational Technology plan. • Continue to increase usage of online resources to complement the chromebook initiative. • Replace classroom projectors/smartboards with touch displays that have reached the end of useful life—$0.5 million. • Continue to provide more comprehensive professional development for all staff. • Upgrade district network security equipment—$0.1 million • Replace chromebooks and administrative devices that have reached the end of useful life— $1.0 million.

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Financial Organization The Finance Department has the responsibility for the fiscal operations of the school division including budget development and management, maintenance of the accounting system, payment of bills, awarding contracts, paying employees, and receipt and posting of revenues. The executive director of finance with direction from the superintendent of schools is responsible for the financial functions required for the school division. Basis of Presentation The financial structure for school system budgeting and accounting is known as fund accounting. This financial structure is composed of various funds and accounts within each fund. FCPS accounts are organized and presented in twelve different funds. Each fund is considered a separate accounting entity with its own general ledger or self-balancing accounts including assets, liabili­ties, fund equity, revenues, and expenditures.

FCPS’ twelve funds are categorized by type of fund: governmental funds (including the general operating fund, debt service fund, capital projects funds, and special revenue), proprietary (consolidated services and health insurance reserve), and fiduciary funds (NREP operating, NREP textbook, and private purpose). Financial resources are allocated and accounted for in funds based on the purposes for which the funds are to be spent and controlled.

Governmental Funds The General Fund is a budgetary fund and is the most important fund of the school division’s financial structure. The General Fund is the School Operating Fund, which was created at the inception of the school district and continues for the life of the division. Revenue sources are state, federal, local, and county transfer of revenue.

The Debt Service Fund is used to accumulate the assets necessary to pay off general long-term debt of the school division when the debt matures. A county transfer of revenue is the primary revenue source for this fund.

Capital Projects Funds are budgetary funds and are useful when large amounts of money are available from local, state, or federal sources for acquiring specific long-lived fixed assets such as land, buildings, classroom equipment, furniture, fixtures, and machinery. Construction and School Capital Projects Funds are categorized here.

Special revenue funds are budgetary funds and are useful for a special kind of educational program that is beyond the scope or financial resources of the general fund. The School Textbook Fund, School Nutrition Services Fund, and Special Grants Fund are special revenue funds. Proprietary Funds Proprietary Funds consist of enterprise funds and internal service funds. Internal service funds are created to account for goods and services produced solely for division and governmental agency use. The Consolidated Services Fund and the School Health Insurance Fund are internal service funds.

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Fiduciary Funds Fiduciary Funds are used when amounts are managed by the school division in private purpose funds and controlled by the School Board as the trustee under provisions of the private purpose agreement.

Approved Total FY 2021 Budget $224,958,450

Fiduciary Funds Governmental Funds Proprietary Funds NREP Operating $6,251,913 Operating $181,760,421 Consolidated Services $3,600,000 NREP Textbook 20,000 Debt Service 17,957,232 Health Insurance* 0 Private Purpose 500,000 Construction* 0 Capital Projects 4,415,900 Textbooks 2,871,240 School Nutrition Services 7,581,744 Special Grants* 0

* FY 2021 appropriated funds will be determined after June 30, 2020, the close of FY 2020.

Classification ofRevenues and Expenditures Revenues received by FCPS are classified within a fund and by revenue source.

State sources Basic Aid, Sales Tax, State Funded Programs

County transfer County government funds from local real estate and personal property taxes Federal sources Individuals with Disabilities Act, Economically Disadvantaged, and other Federal-Funded Programs Local Sources Student parking permits, tuition for non-resident students, drivers education fees, community partnerships, and other miscellaneous

FY 2021 Tuition and Fees • Tuition (per semester) – $3,752.50 in-state rate, $6,381.00 out-of-state rate, $750.50 employee rate • Behind-the-wheel driver education fee – $180.00 • APEX online summer school – $250 for a one-credit recovery course, $325 for a one-credit new course, $125 for a half credit recovery course and $165 for a half-credit new course • Sports participation fee – $75 per athlete, per sport • Other fees – Each year the School Board reviews and approves other fees and charges associated with the various division programs. The fees are set in accordance with the Code of Virginia and are published in individual school-published materials and student information.

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Expenditures are classified by fund, state category, object, and program.

State category Instruction, Administration, Attendance and Health, Pupil Transportation, Operations and Maintenance, Food Services, Facilities, Debt Service, Transfers, and Technology Object Personnel – wages and benefits Operating – contractual services, materials and supplies, computers and software, training, and professional development Capital Outlay - buildings, computers and software, furniture and equipment, vehicles, and buses Program Regular education, special education, career and technical education, gifted education, athletics, summer school, preschool, and community programs

SignificantBudget and Financial Policies and Practices An annual operating budget is submitted to the School Board by the superintendent in accordance with the following Virginia state code:

§22.1-92. Estimate of monies needed for public schools—It shall be the duty of each division superintendent to prepare with the approval of the School Board, and submit to the governing body of bodies appropriating funds for the school division, by the first day ofApril each year, the estimate of the amount of money deemed to be needed during the next fiscal year for the support of the public schools of the school division. The estimate shall set up the amount of money deemed to be needed for each major classification prescribed by the Board of Education and such other headings or items as may be necessary.

Basis of Budgeting The fiscal year for the school division begins on July 1 of each year and ends June 30 of the following year. Annual budgets are adopted for all funds except the construction fund. The School Construction Fund is budgeted on a project-by-project basis. FCPS uses the modified accrual basis in budgeting for governmental funds. The budgets are on a basis consistent with generally accepted accounting principals (GAAP). The budget period is the same as the accounting period. Budget and accounting reports follow GAAP. The budget document contains the same funds as the financial report. The School Board is required to adopt annually a budget for the operation of the school division. The budget must identify the source of estimated revenue including local taxes necessary to meet the budget financial requirements as adopted.

The school division’s budget is prepared utilizing the zero-based budgeting methodology. All school staffing is recalculated based on enrollment projections by applying staffing standards. Needs for all other line items are justified in detail opposed to applying a percentage increase to previous year budget. Schools receive a per-student allotment each year based on student enrollment by school. Additionally, FCPS employs involvement by school principals, staff, and community members in the budget development process.

The superintendent and administration submits a preliminary budget to the School Board for its consideration each year. The School Board is required by law to conduct a public hearing to receive input from citizens regarding the budget. The hearing must be advertised in the local newspaper at least 10 days prior to the hearing.

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Capital Projects Budget Policies and Practices The school division develops and administers a multi-year plan for capital improvements. The Capital Improvement Plan (CIP) is updated annually and is included in the Comprehensive Policy Plan of Frederick County. The School Division budgets for major capital projects in accordance with the priorities of the School Board. Development of the capital improvement budget is coordinated with the development of the operating budget. Future operating costs associated with new capital improvements are projected and included in the operating budget. The school division monitors monthly financial activity of capital projects comparing budget funds to actual expenditures ensuring actual project costs do not exceed appropriated funds.

Debt Management Policies and Practices The school division is not permitted to incur long-term debt including debt financing to construct and renovate schools. This is the responsibility of the county government. However, the school division manages the accounting and maintenance for school-related debt.

Virginia does not impose a debt limitation on Frederick County. Frederick County’s guidelines on debt management include: • Tax supported 10-year payout ratio should be greater than 65 percent. • Debt to assessed value should not exceed 0.75 – 1.75 percent. • Debt service to governmental expenditures ratio should not exceed 8 -12 percent. • Long-term debt is not used to finance current operations. • Debt for capital construction and improvements are repaid over the expected useful life of the project.

Fund Balance Class and Policy Fund balance measures the net financial resources available to finance expenditures of future periods. The Governmental Accounting Standards Board (GASB) categorizes governmental fund balance into five components as follows. • Nonspendable – amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. Inventory values are included here. • Restricted – amounts restricted for use as identified by grantors, contributors, constitutional laws, or regulations of other governments. • Committed – amounts used only for specific purposes pursuant to constraints imposed by formal actions of the highest level of decision making authority. Outstanding encumbrances or contractual agreement amounts are included here. • Assigned – amounts constrained by the government’s intent to use for specific purposes, but are neither restricted nor committed and are established by the highest level of decision making or by body designated for that purpose. • Unassigned – residual classification for the general fund (operating fund) and represent fund balance not assigned to other funds and is not restricted, committed, or assigned to specific purposes within the general fund.

In accordance with Virginia code §22.1-100—unexpended school and educational funds—all sums of money derived from the state which are unexpended in any year in any school division shall revert to the fund of the state from which derived unless the Board of Education directs otherwise. All sums derived from local funds unexpended in any year shall remain a part of the funds of the governing body appropriating funds for use the next year, but no local funds shall be subject to re-division outside the locality in which they are raised.

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Encumbrances The school division uses encumbrance accounting as one element of accomplishing budgetary control. Encumbrances reserve funds for outstanding expenditure commitments such as contracts and purchase orders. Encumbered amounts at fiscal year end lapse and are reappropriated in the subsequent fiscal year when deliveries are received and services rendered.

Expenditure Controls Further elements of accomplishing budgetary control are practicing the following expenditure control procedures. • Funds to cover purchase orders should be in the budget under the appropriate category before encumbering the order. If funds are inadequate, a budget transfer is prepared to transfer funds into the account. Once the transfer is posted, the purchase order is authorized for encumbering. • Purchase orders are reviewed by Finance for verification of account code and compliance with Virginia Procurement Code and FCPS purchasing regulations. • Individual account managers (schools and departments) are responsible for monitoring their budget balances ensuring actual expense does not exceed funding level. • Finance is responsible for monitoring and forecasting expenditures. If errors are detected in account codes, an expenditure transfer is used to correct the error.

Accounting, Auditing, & Financial Reporting Policies and Practices The accounting system reports financial information on a basis consistent with generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB).

Finance prepares monthly financial reports comparing actual revenues and expenditures to budgeted amounts. Monthly financial reports are provided to the School Board. Quarterly financial reports are provided to the county Board of Supervisors. Finance also prepares reports on revenues, expenditures, and fund balances annually to the School Board and Virginia Department of Education through the Superintendent’s Annual School Report.

An independent certified public accounting firm is selected by the county government and performs an annual audit of the schools and county government. Through the audit, the independent accounting firm publicly issues their opinion on the county’s financial statement and FCPS component unit of the County’s Comprehensive Annual Financial Report.

Basis of Accounting Basis of accounting refers to the timing of recognition of revenues and expenditures in the accounts and in the financial statements, regardless of measurement focus. The modified accrual basis of accounting is followed for all governmental type funds of the school division. Revenues are recognized in the accounting period in which they become measurable and available to meet operational needs of the current period. Expenditures, other than long-term debt and the long-term portion of accumulated sick and vacation pay, are recorded when the fund liability is incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable fiduciary funds are accounted for using a current financial resources measurement focus – only current assets and current liabilities are generally included on the balance sheets. Operating statements of these funds present increases (revenues and other financial sources) and decreases (expenditures and other financing uses) in net current assets.

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The proprietary fund is accounted for on a flow of economic resources measurement focus. With the measurement focus, all assets and liabilities associated with the operations of this fund are included on the balance sheet. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in fund equity (net total assets).

Budget Development and Management Process The budget process represents the development of the school division’s financial plan to meet goals and objectives. The budget process aligns the School Board vision, strategic plans, and allocation of resources to implement the mission. The budget process is the framework for school divisions and their fiduciary responsibility as good stewards of public funds. Budget preparation provides the opportunity to assess current program effectiveness in meeting needs of students and identify program enhancements, improvements, or additions.

A number of statutory requirements drive the budget process and coordination between Frederick County Public Schools and Frederick County Government as well as opportunities for community engagement and comment.

Budget Timeline—The Public Process

10 days Superintendent notice Prepares & County Board of Proposes Supervisors Public Hearing Approves May 15 Or within 30 days of state Statutory funding for schools Requirement School Board Public Hearing Approves or Endorses

10 days County notice Administration Includes April 1

Budget Development Budget development uses a zero-based methodology. It is developed based on actual needs without particular regard to previous funding levels. The largest portion of FCPS' operating budget is dedicated to employee compensation. Staffing levels are recalculated by the division’s central office each year based on various variables—student enrollment projections, School Board recommended pupil teacher ratios, pupil transportation ridership percentages and routes, building square feet, technology devices, administrative requirements, etc. Further, employee compensation is benchmarked with the local labor marketplace for all pay groups to measure competitiveness.

Account managers (school principals, department leads, and grant managers) are responsible for submitting budget requests to the finance department using an online budget preparation system.

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Program descriptions, accomplishments, goals, and requests with detailed descriptions are entered in the system. Account managers are responsible for school/department-level budgets and actual expenditure of those funds. School and departmental-level budgets include funds for fixed-operational costs. School- level budgets also include per-pupil supply allocations. School principals and department leads are not responsible for costs associated with staffing levels and employee compensation.

Revenue estimates are developed based on historical trends and current information available from state, federal, county, and local sources. All fund revenue and expenditure budgets are balanced—there is neither a budget deficit nor budget surplus, and total revenues equal total expenditures.

Budget Approval After budget requests are submitted and analyzed by Finance, requests are reviewed by the superintendent and leadership team. Requests that are approved comprise the expenditure component of the Superintendent’s Proposed Budget. The revenue component of the proposed budget is completed through the finance department in collaboration with grant managers of federal programs, estimates of state revenue based on Virginia Governor/General Assembly actions, and availability of local tax funding.

The Superintendent’s Proposed Budget is submitted to the School Board in February. The School Board holds public budget work sessions and public hearings on the proposed budget during the months of February and March. The School Board may alter the proposed budget prior to submission to the governing body, the Frederick County Board of Supervisors. Upon approval by the School Board, the budget is submitted to the Board of Supervisors.

The Board of Supervisors holds budget work sessions and public hearings throughout February and March and appropriates a budget for the school division at the first meeting inApril. The School Board holds budget work sessions and public input sessions in reconciling the proposed to the adopted budget.

An appropriated budget document for the fiscal year is then published and distributed.

Capital Budget Capital needs are determined through the development of the Capital Improvement Plan (CIP) updated annually to maintain multiple year projections of the school division’s capital needs based on student enrollment growth, geographic locations of highest growth, and renovation and addition needs to existing facilities to maintain parity. Funding for capital projects are requested separate from the Superintendent’s Operating Budget Proposal. The CIP is reviewed and approved by the School Board on an annual basis and appropriated by the Board of Supervisors.

Budget Key Factors and Assumptions Significant factors and assumptions influenced the development of the 2021 budget.The School Board, superintendent, and leadership team considered these factors when developing their budget goals. • Student enrollment will increase to 14,158 students. • Opening the 12th elementary school in the summer – Jordan Springs Elementary. • Focus on student mental health. • FCPS salaries for certain pay groups continue to be behind the market. • Health insurance costs will not increase due to partnership offering an on-site clinic for employees and dependents participating in the group health plan. • Impact of student special education needs, staffing levels, and professional development.

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• Impact of Capital Asset Plan for facilities preventative maintenance and asset replacements. • Elimination of sustained operating funds for replacement cycles – technology, facilities, and school buses. • State will continue to provide revenue based on average daily membership, and lottery proceeds and sales tax revenues will not be reduced further due to COVID-19. • Board of Supervisors will appropriate 57 percent of additional county tax general fund revenues to the School Division. • Board of Supervisors will not fund construction projects listed on the Capital Improvement Plan in the near future.

FY 2021 School Board Budget Priorities • Instructional initiatives and professional learning to address increased accountability, improve student achievement, address student needs, and reflect student voice. • Compensation packages (salaries, benefits, and professional learning) that enable the recruitment and retention of high quality staff. • Operational funding to address preservation of assets (facility maintenance), replacement school buses, safety and environmental enhancements, and aging infrastructure/systems.

Budget Calendar

Action Required Virginia Code Process Timeline School Board FY21 Preliminary Fiscal Outlook October and Budget Priority Establishment Superintendent’s Proposed FY2021-2025 November Capital Improvements Plan (CIP) presented to School Board School Board CIP to County for Budget by April 1 November–March Comprehensive Policy Plan inclusion and CIP Budget to Board of Supervisors Superintendent’s Proposed Operating Budget February to School Board Publish Public Hearing Notice At least 10 days in advance of February the public hearing Operating Budget Public Hearing Once before submission to the February Board of Supervisors School Board Operating Budget to Board of April 1 March Supervisors Board of Supervisors Adoption of FY2021 May 15 or within 30 days of April Appropriations Resolution and Tax Rates receipt of State funding for schools and July 1 for tax rate School Board Adoption of the FY2021 Budget April

55 Organizational Section

Budget Management The annual adopted budgets are integrated in an automated accounting system at the beginning of each fiscal year. Each account manager is accountable for operating their accounts within the limits of the annual adopted budget. Expenditures, encumbrances, and budget amounts are controlled by fund, account manager, state expenditure category, and project elements of the account code string by an automated accounting budgetary control system.

Account managers may not expend or encumber more funds than approved as deficit budgets are not permitted. Often, modifications are needed to account manager budgets such as when student enrollment is greater than planned, a needed position cannot be filled, and the service is contracted. When modifications are needed, account managers work with the finance department to find funding and complete a budget transfer. Modifications may also be needed to fund totals due to student enrollment growth. Increasing the total fund amount requires approval from the Board of Supervisors and is completed by budget amendments.

All financial commitments must have approved budgets prior to the issuance of purchase orders, contracts, staffing, etc. If an item requires a budget transfer, the budget transfer must be approved before the financial commitment can be issued. All budget transfers must be approved by account managers and the finance department prior to posting to the general ledger. Written justification and supporting documentation are completed before the transfer is approved. All budget transfers are reported to the School Board on a monthly basis. Budget transfers in excess of $25,000 between state categories are reported to the County Board of Supervisors on a quarterly basis.

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Financial Structure The financial section of the FY 2021 Adopted Budget document presents the fiscal plan for the total budget organized with all funds combined, fund types combined, and individual fund data. Frederick County Public Schools is fiscally dependent upon the Frederick County governing body in accordance with Virginia State Code §22.1-94 and 22.1-95. The county governing body is authorized, directed and required to raise money by a tax on all property. Monies raised through a tax are appropriated to the School Board to provide an educational program which meets the state standards of quality. The school division’s budget is appropriated by the Frederick County Board of Supervisors at the fund level. The budget is also presented to the Board of Supervisors by state category as required by state law.

Frederick County Public Schools' budget is maintained by fund, type, function (state category), and object to classify sources and uses of funds. Fund permits the school division to accurately account for revenues and expenses at a summary level. Resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Function represents Virginia Board of Education expenditure categories required for budget approval and state level financial reporting. The object level serves as another classification of revenues and expenditures. Disbursement is another word for expenditure.

Financial Reporting Pyramid

Operating, Debt Service, Construction, Capital Projects, Textbook, NREP Operating, NREP Textbook, School Nutrition Services, Consolidated Services, Fund Health Insurance, Trusts, Special Grants

Revenue or Expenditure Type

Instruction, Administration, Attendance and Health, Pupil Transportation, Operations and Function Maintenance, Facilities, Technology, School Nutrition Services, Other Uses

Salaries, Wages, Employee Benefits, Purchased Services, Other Charges, Object Materials and Supplies, Capital Outlay

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All School Board Funds

Fund Type Fund Name FY 2021 Approved Budget Governmental School Operating $181,760,421 School Textbook $2,871,240 School Nutrition Services $7,581,744 Approved for amounts based on cash balances as of Special Grants* June 30, 2020, plus receipts during the fiscal year School Debt Service $17,957,232 Approved as a carry-forward in the amount that equals the School Construction* approved original project cost, less expenditures and encumbrances through June 30, 2020 School Capital Projects $4,415,900 Fiduciary NREP Operating $6,251,913 NREP Textbook $20,000 Private Purpose $500,000 Proprietary Consolidated Services $3,600,000 Approved for amounts based on cash balances as of School Health Insurance* June 30, 2020, plus receipts during the fiscal year Total $224,958,450

*Estimates for Special Grants, School Construction, and School Health Insurance funds are included under the all funds combined financial statement, combined fund types, and individual funds for budgetary estimates and forecasting purposes.

All Funds Revenue by Source ALL FUNDS REVENUE BY SOURCE FY 2020 FY 2021 2017 2018 2019 APPROVED OR APPROVED OR INCREASE ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED (DECREASE) County 91,010,648 96,334,392 100,474,494 106,693,465 109,109,365 2,415,900 State 73,217,417 75,732,005 79,613,148 84,135,340 88,255,559 4,120,219 Federal 7,509,826 8,268,932 8,216,810 8,231,678 8,758,224 526,546 Local/Other Receipts 10,711,715 11,215,698 11,368,913 13,485,725 13,355,078 (130,647) Fund Transfers 559,951 1,207,511 555,709 548,707 1,137,364 588,657 Beginning Balance 9,534,661 8,662,948 8,733,227 5,343,649 4,342,860 (1,000,789) Undelivered Commitments 903,813 1,032,256 542,862 - - Sub-total Revenues 193,448,031 202,453,742 209,505,165 218,438,564 224,958,450 6,519,886 CONSTRUCTION FUND* 8,643,378 8,927,719 34,798,756 50, 300,954 43,378,879 (6,922,075) HEALTH INSURANCE FUND* 19,839,539 21,908,109 23,811,179 28,715,306 31,088,950 2,373,644

TOTAL SOURCES OF FUNDS $ 221,930,947 $ 233,289,570 $ 268,115,098 $ 297,454,823 $ 299,426,279 $ 1,971,455

*FY 2020 and FY 2021 estimates for Construction and Health Insurance funds are included for budgetary estimates and forecasting purposes.

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County Funds Frederick County Government collects revenue primarily from real estate and personal property taxes and transfers a portion of the funds to Frederick County Public Schools for operations, capital projects, and debt service. Historically, new county revenues due to natural growth from the tax base is split 57 percent to schools and 43 percent to county government services. For FY 2021, FCPS is expected to receive an increase of $2,415,900, or 2.3 percent, from the county general fund.

State Funds Virginia provides funds for schools from three primary sources – income tax, sales tax, and lottery proceeds. State funds are allocated based on the state’s share of Standards of Quality and special, incentive programs. Educational costs to support the Standards of Quality are apportioned between the state and county based on the county’s ability to pay for education. For FY 2021, FCPS is expected to receive an increase of $4,120,219, or 4.9 percent to support operations, nutrition, and textbooks. Shortly after the FY 2021 budget was adopted, the Governor reduced state funds by $1,781,506 for FCPS due to declining economic activity caused by "stay at home" orders under COVID-19 pandemic.

Federal Funds The Federal Government provides funds for education designated for specific purposes such as special education and economically disadvantaged students. These funds are designed to supplement the educational program, support restricted programs, and provide breakfast and lunch for economically disadvantaged students. FCPS is expected to receive an increase of $526,546 for FY 2021.

Local/Other Receipts Local/other receipts include meal sales to students and employees, interest earned on deposits of certain funds, tuition from other localities for joint operations (regional programs), and billable vehicle services to schools and other governmental agencies. For FY 2021, FCPS is projected to receive a decrease of $130,647 from miscellaneous local sources.

Fund Transfers Fund transfers are sources of revenue from one fund to another fund. For FY 2021, $0.6 million additional funds for textbooks and school nutrition will be transferred from the School Operating Fund.

Beginning Balance Also known as opening fund balance, beginning balance is a source of funding for operations and represents prior period assets in excess of liabilities.

Undelivered Commitments Undelivered commitments are a portion of fund balance reserved for outstanding encumbrances or expenditure contract obligations.

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All Funds Expenditures by State Category ALL FUNDS EXPENDITURES BY STATE CATEGORY FY 2020 FY 2021 2017 FY 2018 FY 2019 APPROVED OR APPROVED OR INCREASE ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED (DECREASE) Instruction 118,652,870 125,000,903 132,186,125 141,102,513 145,714,754 4,612,241 Administration 4,196,920 4,412,209 4,613,164 4,913,926 4,800,377 (113,550) Attendance and Health 2,628,916 2,700,637 2,946,388 3,066,241 3,144,665 78,424 Pupil Transportation 11,622,653 12,626,335 12,432,659 13,673,379 13,132,666 (540,713) Operations & Maintenance 17,103,537 17,663,661 18,720,672 20,055,008 21,634,823 1,579,815 Food Services 4,570,087 4,867,131 6,103,469 5,583,557 6,014,516 430,959 Facilities 454,501 1,063,683 617,415 395,324 432,279 36,955 Technology 7,535,795 7,865,732 7,994,595 9,692,983 8,527,110 (1,165,873) Debt & Fund Transfers 16,987,550 16,977,363 15,560,172 17,285,576 19,104,596 1,819,020 Contingency Reserves ------CONSTRUCTION FUND* 6,493,058 2,050,408 9,344,914 23,322,074 43,378,879 20,056,805 HEALTH INSURANCE FUND* 17,321,579 19,431,557 16,918,505 19,643,356 20,472,881 829,525 Total Disbursements and Transfers $ 207,567,465 $ 214,659,618 $ 227,438,076 $ 258,733,937 $ 286,357,545 $ 27,623,608

*FY 2020 and FY 2021 estimates for Construction and Health Insurance are included for budgetary estimates and forecasting purposes.

Per Virginia Code section 22.1.115—the State Board, in conjunction with the Auditor of Public Accounts, shall establish and require of each school division a modern system of accounting for all school funds, state and local, and the treasurer or other fiscal agent of each school division shall render each month to the School Board a statement of the funds in his hands available for school purposes. The Board shall prescribe the following major classifications for expenditures of school funds:

Instruction Instruction includes the activities that deal directly with the interaction between teachers and students. Instruction may be provided for students in a school classroom, in another location such as a home or hospital, or in other learning situations such as those involving co-curricular activities. Instruction may also be provided through another approved medium such as television, internet, radio, telephone, or correspondence. The activities of aides or classroom assistants of any type that assist in the instructional process are included in this category.

Administration, Attendance, and Health Activities concerned with establishing and administering policy for operating the local education agency and activities whose primary purpose is the promotion and improvement of children’s attendance at school. This consists of various activities in the field of physical and mental health, such as medicine, dentistry, psychology, psychiatry, and nursing services, as well as activities in student attendance services.

Pupil Transportation Activities concerned with transporting students to and from school, as provided by state and federal law. This includes trips between home and school trips to and from school activities.

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Operations and Maintenance Activities concerned with keeping the physical plant open, comfortable, and safe for use, and keeping the grounds, buildings, and equipment in effective working condition. This includes activities of maintaining safety in buildings, on the grounds, and in the vicinity of schools. School Food Services and Other Non-Instructional Operations Activities concerned with providing non-instructional services to students, staff, or the community. Facilities Activities concerned with acquiring land and buildings, remodeling buildings, constructing buildings and additions to buildings, installing or extending service systems and other built-in equipment, and improving sites. Technology This category captures technology-related expenditures as required by the General Assembly. All technology-related expenditures should be reported under this state category. Any services (i.e., distance learning) involving the use of technology for instructional, public information, or any other use should be recorded exclusively in this state category and not reported in other state categories. Debt and Fund Transfers Activities concerned with managing outlays of governmental funds for debt service payments, lease payments, and fund transfers. Contingency Reserves All contingency reserve expenditures should be reported under this state category and further categorized by the classifications above. All Funds Expenditures by Object ALL FUNDS EXPENDITURES BY OBJECT FY 2020 FY2021 FY 2017 FY 2018 APPROVED OR APPROVED OR INCREASE ACTUAL ACTUAL FY 2019 ACTUAL ESTIMATED ESTIMATED (DECREASE) Personnel Salaries & Wages 99,271,456 102,504,971 107,471,014 114,313,991 115,273,172 959,181 Employee Benefits 37,904,116 41,598,525 43,773,496 46,170,069 47,866,936 1,696,867 Personnel Total 137,175,572 144,103,496 151,244,510 160,484,060 163,140,108 2,656,048 Operating Materials & Supplies 11,088,237 12,676,987 14,882,929 13,887,798 15,358,318 1,470,520 Other Charges 5,358,922 5,668,949 5,938,445 6,483,872 6,741,912 258,040 Purchased Services 4,632,009 5,189,415 4,928,750 6,682,905 8,649,249 1,966,344 Operating Total 21,079,168 23,535,351 25,750,125 27,054,575 30,749,479 3,694,904 Payments to Joint Operations 3,298,916 3,546,967 3,450,853 4,096,515 4,196,427 99,912 Capital Outlay 2,513,156 2,153,563 2,129,711 1,346,630 1,136,076 (210,554) Debt Service 16,427,599 15,769,851 15,004,463 16,726,869 17,957,232 1,230,363 Capital Projects* 9,372,477 4,961,570 12,416,832 28,622,074 47,794,779 19,172,705 Health Insurance Claims* 17,113,810 19,341,527 16,827,076 19,554,508 19,746,080 191,572 Private Purpose 26,816 39,781 58,797 300,000 500,000 200,000 Transfers 559,951 1,207,512 555,709 548,707 1,137,364 588,657 Total Disbursements and $ 207,567,465 $ 214,659,618 $ 227,438,076 $ 258,733,937 $ 286,357,545 $ 27,623,608 Transfers

*Estimates for Capital Projects (includes construction estimates) and Health Insurance Claims are included for budgetary estimates and forecasting purposes Other charges include utilities, travel for students and staff, insurance, equipment leases, and memberships.

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All Funds Combined Financial Statement

ALL FUNDS COMBINED STATEMENT FY 2020 FY 2021 APPROVED APPROVED FY 2017 FY 2018 FY 2019 OR OR FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FORECAST FORECAST FORECAST Beginning Balance July 1 20,034,095 13,331,226 18,087,090 37,990,165 40,693,689 12,811,297 12,291,428 11,636,458

Receipts Interest 77,450 174,771 639,661 448,718 152,552 147,552 147,552 147,552 State Aid 73,217,417 75,732,005 79,613,148 84,135,340 88,255,559 90,875,718 95,283,956 98,082,864 Federal Aid 7,509,826 8,268,932 8,216,810 8,231,678 8,758,224 8,849,504 8,943,521 9,040,360 Sales and Other Receipts 28,617,746 30,454,757 32,474,398 36,851,751 34,919,526 34,024,921 33,339,897 32,714,523 Proceeds - Sale of Bonds - 6,753,720 27,510,926 22,555,000 16,400,000 - - - Undelivered Commitments 903,813 1,032,256 542,862 - - - - - Total Receipts 110,326,253 122,416,440 148,997,806 152,222,486 148,485,861 133,897,695 137,714,926 139,985,299

Transfers In County General Fund 91,010,648 96,334,392 100,474,494 106,693,465 109,109,365 119,422,570 117,852,833 121,120,355 School Operating Fund 559,951 590,034 555,709 548,707 1,127,364 1,381,363 648,869 648,869 Other School Funds - 617,478 - - 10,000 10,000 10,000 10,000

Total Funds Available 221,930,947 233,289,571 268,115,099 297,454,823 299,426,279 267,522,925 268,518,055 273,400,981

Disbursements Personnel 137,175,572 144,103,496 151,244,510 160,484,060 163,140,108 167,702,229 173,566,938 179,677,319 Operating 21,079,168 23,535,351 25,750,125 27,054,575 30,749,479 30,827,561 30,216,837 31,003,474 Pmts to Joint Operations 3,298,916 3,546,967 3,450,853 4,096,515 4,196,427 4,301,338 4,408,871 4,519,093 Capital Outlay 2,513,156 2,153,562 2,129,711 1,346,629 1,136,076 2,276,783 2,326,952 2,378,376 Debt Service 16,427,599 15,769,851 15,004,463 16,726,869 17,957,232 18,989,718 17,430,688 16,062,772 Capital Projects 9,372,477 4,961,571 12,416,832 28,622,074 47,794,779 9,008,700 7,842,000 8,724,000 Health Insurance Claims 17,113,810 19,341,528 16,827,076 19,554,508 19,746,080 20,733,384 20,430,442 20,565,989 Private Purpose Activity 26,816 39,781 58,797 300,000 500,000 - - - Total Disbursements 207,007,514 213,452,106 226,882,367 258,185,230 285,220,181 253,839,713 256,222,728 262,931,024

Transfers to Other School Funds 559,951 1,207,512 555,709 548,707 1,137,364 1,391,783 658,869 658,869

Total Disbursements and Transfers 207,567,465 214,659,618 227,438,076 258,733,937 286,357,545 255,231,496 256,881,597 263,589,893

Ending Balance, June 30 14,363,483 18,629,952 40,677,021 38,720,886 13,068,734 12,291,428 11,636,458 9,811,089 Nonspendable 544,275 600,220 559,516 530,000 530,000 530,000 530,000 530,000 Committed 11,811,659 16,624,745 38,045,000 37,850,886 11,961,297 11,441,428 10,786,458 8,961,088 Restricted 979,814 1,197,284 999,945 340,000 577,437 320,000 320,000 320,000 Assigned 30,470 20,823 31,896 - - - - - Unassigned 997,265 186,879 1,040,663 - - - - -

Significant Shifts from Current Year Total funds available, disbursements, and transfers approved or estimated for FY 2021 are greater than FY 2020 due to opening Jordan Springs Elementary School and constructing the replacement Robert E. Aylor Middle School.

Fund ending balance is forecasted to decline based on the construction timeline of the replacement Robert E. Aylor Middle School.

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Budget Estimates and Forecast Assumptions and Trends • Student enrollment will grow at about two percent each year based on recent growth trends and population forecasts. • State will continue to provide revenue based on average daily student membership and will be a third of all available funds. • Transfer of funds from the county general fund will continue to be just over a third of all available revenue based on historical trends. • Federal ESSA and IDEA funds and requirements will be consistent with current requirements and funding levels. • Personnel expense will average two thirds of total disbursements based on historical trend. • County Board of Supervisors will not approve funding for the top five construction projects as described and projected in the Capital Improvement Plan under the School Construction Fund due to economic uncertainty caused by COVID-19 pandemic. • Replacement Robert E. Aylor Middle School will open in FY 2022 at minimal additional operating costs for staffing, materials, and supplies. • Health insurance premiums are forecasted to decrease five percent each year due to FCPS' partnership with CareTeam to provide an on-site health center for participating employees and their health dependents. • A division average salary increase of three percent will occur each year forecasted based on current consumer price index and market comparisons. • Staffing directly serving students will increase based on two percent student enrollment growth to maintain current pupil teacher ratios of kindergarten through third grade at 18:1 and 24:1 for grades four through twelve. • Recurring funds for replacement cycles will be fully restored—$1.3 million for school buses, $0.5 million for technology, and an average $8.0 million for facilities equipment as projected in the Capital Asset Preservation Plan. • Consumable supplies and services will increase 2.5 percent based on current consumer price index.

Other Post Employment Benefit Financial Disclosure Frederick County Public Schools (FCPS) offers a post-employment health care benefit to eligible retirees and their dependents. This benefit means retirees and their dependents can continue to participate in the division’s health plan at their own cost. Coverage expires for retirees at age 65, or until they are eligible for another supplemental plan such as Medicare. FCPS establishes employer contribution rates for plan participants as part of the annual budget process. Premiums for eligible retirees are 10 percent greater than total premium contributions. Generally accepted accounting rules require FCPS to calculate the actuarial value of the blended rate as applied to its current and future retirees, and to publish the financial liability of this benefit.

For fiscal year ended June 30, 2019, the unfunded OPEB actuarial accrued liability was $7,603,181. This amount represents a total for multiple years and is considered to be nominal in perspective and comparison to other agencies and employers. The funding method is “pay-as-you-go;" therefore, FCPS has not established an irrevocable trust to fund its Other Post-Employment Benefit (OPEB ) plan.

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Governmental Funds Combined Financial Statement Governmental funds account for school division operations, school nutrition, textbook funds, debt service, capital projects, construction, and special grants. This financial activity is reported to the state annually under a prescribed format. SUMMARY OF GOVERNMENTAL FUNDS FY 2020 FY 2021 FY 2017 FY 2018 FY 2019 APPROVED/ APPROVED/ FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FORECAST FORECAST FORECAST Beginning Balance, July 1 17,162,227 9,784,858 14,350,610 30,307,491 30,415,302 1,575,228 1,575,228 2,197,840

Receipts Interest 44,588 84,296 464,184 306,010 47,552 47,552 47,552 47,552 State Aid 73,177,973 75,692,561 79,587,148 84,109,340 88,229,559 90,849,718 95,257,956 98,056,864 Federal Aid 7,509,826 8,268,932 8,216,810 8,231,678 8,758,224 8,849,504 8,943,521 9,040,360 Sales and Other Receipts 3,360,005 3,274,831 3,299,056 6,062,287 3,878,050 3,962,884 4,047,595 4,134,847 Proceeds-Sale of Bonds - 6,753,720 27,510,926 22,555,000 16,400,000 - - - Undelivered Commitments 903,813 1,032,256 542,862 - - - - - Total Receipts 84,996,206 95,106,595 119,620,987 121,264,314 117,313,385 103,709,658 108,296,624 111,279,623

Transfers In County General Fund 91,010,648 96,334,392 100,474,494 106,693,465 109,109,365 119,422,570 117,852,833 121,120,355 School Operating Fund 559,951 590,034 555,709 548,707 1,127,364 1,381,363 648,869 648,869 Other School Funds - 617,478 ------

Total Funds Available 193,729,032 202,433,358 235,001,801 258,813,978 257,965,416 226,088,819 228,373,554 235,246,687

Expenditures Personnel 132,428,775 139,051,798 145,759,869 154,321,637 156,996,161 161,379,659 167,060,529 172,981,702 Operating 18,349,041 20,855,424 22,978,426 24,146,681 27,211,149 27,220,609 26,502,805 27,182,447 Payments to Joint Operations 3,298,916 3,546,967 3,450,853 4,096,515 4,196,427 4,301,338 4,408,871 4,519,093 Capital Outlay 2,475,158 2,146,762 2,129,711 1,342,558 1,107,076 2,231,783 2,281,952 2,333,376 Capital Projects 9,372,477 4,961,571 12,416,832 28,622,074 47,794,779 9,008,700 7,842,000 8,724,000 Debt Service 16,427,599 15,769,851 15,004,463 16,726,869 17,957,232 18,989,718 17,430,688 16,062,772 Total Expenditures 182,351,966 186,332,373 201,740,154 229,256,334 255,262,824 223,131,807 225,526,845 231,803,390

Transfers to Other School Funds 559,951 1,207,512 555,709 548,707 1,127,364 1,381,783 648,869 648,869

Total Expenditures & Transfers 182,911,917 187,539,885 202,295,863 229,805,041 256,390,188 224,513,590 226,175,714 232,452,259

Ending Balance, June 30 10,817,114 14,893,472 32,705,935 29,008,936 1,575,228 1,575,228 2,197,840 2,794,428 Nonspendable 235,775 232,432 279,516 250,000 250,000 250,000 250,000 250,000 Committed 9,268,601 14,136,800 31,006,002 28,758,936 1,325,228 1,325,228 1,947,840 2,544,428 Restricted 285,004 316,538 347,857 - - - - - Assigned 30,470 20,823 31,896 - - - - - Unassigned 997,265 186,879 1,040,663 - - - - -

Significant Shifts from Current Year FY 2021 and future year forecasts reflect significant changes compared to FY 2020 due to opening Jordan Springs Elementary School and additional positions to support student enrollment growth.

Fund balance is forecasted to decline based on construction timeline of the replacement Robert E. Aylor Middle School.

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Budget Estimates and Forecast Assumptions and Trends • Student enrollment will continue to grow at about two percent each year based on recent growth trends and population forecasts. • State will continue to provide revenue based on average daily student membership and will average 40 percent of total available funds based on trend. • Transfer of funds from the county general fund will average 49 percent of total available funds based on trend to support operations and debt service. • Federal ESSA and IDEA funds and requirements will be consistent with current requirements, and funding levels will be 4 percent of total available revenue based on trend. • County Board of Supervisors will not approve funding for the top five construction projects as described and projected in the Capital Improvement Plan under the School Construction Fund due to economic uncertainty caused by the COVID-19 pandemic. • Proceeds from sale of bonds will be suspended after FY 2022 due to the Capital Improvement Plan not being funded by the Board of Supervisors. • Replacement Robert E. Aylor Middle School will open in FY 2022 at minimal additional operating costs for staffing, materials, and supplies. • Employer share of health insurance premiums are forecasted to decrease five percent each year due to FCPS partnership with CareTeam to provide an on-site health center for participating employees and their health dependents. • Salaries will increase three percent each forecasted year for a cost of living adjustment based on current consumer price index and market comparisons. • Staffing directly serving students will increase based on two percent student enrollment growth to maintain current pupil teacher ratios of 18:1 for kindergarten through third grade and 24:1 for grades four through twelve. • Recurring funds for replacement cycles will be fully restored—$1.3 million for school buses, $0.5 million for technology, and an average $8.0 million for facilities equipment as projected in the Capital Asset Plan. • Consumable supplies and services under operating expenditures will increase 2.5 percent based on current consumer price index. • Personnel expenditures for governmental activities will average 72 percent of total expenditures based on trend.

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School Operating Fund School Operating Fund is a governmental fund that accounts for revenues and expenditures to support the daily operations of the school division. This fund supports 2,150.7 full-time equivalent positions.

SUMMARY OF SCHOOL OPERATING FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 670,619 1,282,268 503,417 - - - - Receipts State Aid 72,102,244 74,566, 843 78,496,837 82,992,357 86,932,369 89,540,340 94,017,357 96,837,878 Federal Aid 4,663,936 5,335,895 5,224,808 5,113,311 5,439,792 5,439,792 5,439,792 5,439,792 Sales and Other Receipts 986,746 997,326 912,682 1,430,716 1,080,326 1,080,326 1,080,326 1,080,326 Undelivered Commitments 903,813 1,032,256 542,862 - - - - - Total Receipts 78,656,739 81,932, 320 85,177,188 89,536,384 93,452,487 96,060,458 100,537,475 103,357,996 Transfers In County General Fund 75,038,173 77,273, 630 82,331,174 86,445,165 88,307,934 92,010,982 93,098,196 96,830,021 Other School Funds - 617,478 - - - - - Total Funds Available 154,365,531 161,105,696 168,011,779 175,981,549 181,760,421 188,071,440 193,635,671 200,188,017 Expenditures Personnel 129,913,851 136,496,532 142,992,878 151,284,697 153,909,066 158,197,566 163,782,409 169,604,645 Operating 15,817,718 17,465, 217 18,162,870 18,946,510 21,642,898 22,183,970 22,738,570 23,307,034 Payments to Joint Operations 3,298,916 3,546,967 3,450,853 4,096,515 4,196,427 4,301,338 4,408,871 4,519,093 Capital Outlay 2,460,571 1,960,667 1,235,404 1,105,120 884,666 2,006,783 2,056,952 2,108,376 Total Expenditures 151,491,056 159,469,383 165,842,004 175,432,842 180,633,057 186,689,657 192,986,802 199,539,148 - Transfers to Other School Funds 559,951 590,034 555,709 548,707 1,127,364 1,381,783 648,869 648,869 Total Expenditures & Transfers 152,051,007 160,059,417 166,397,713 175,981,549 181,760,421 188,071,440 193,635,671 200,188,017 Ending Balance, June 30 2,314,524 1,046,279 1,614,066 - - - - Nonspendable ------Committed 1,032,256 542,862 225,545 - - - - Restricted 285,004 316,538 347,857 - - - - Assigned ------Unassigned 997,265 186,879 1,040,663 - - - -

Operating Revenue Trends, Assumptions, & Significant Shifts from Current Year OPERATING FUND REVENUE – TRENDS AS A PERCENT BY SOURCE FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 0% 1% 0% 0% 0% 0% 0% 0% Receipts State Aid 47% 46% 47% 47% 48% 48% 49% 48% Federal Aid 3% 3% 3% 3% 3% 3% 3% 3% Sales and Other Receipts 1% 1% 1% 1% 1% 1% 1% 1% Undelivered Commitments 1% 1% 0% 0% 0% 0% 0% 0% Total Receipts 51% 51% 51% 51% 51% 51% 52% 52% Transfers In County General Fund 49% 48% 49% 49% 49% 49% 48% 48% Other School Funds 0% 0% 0% 0% 0% 0% 0% 0% Total Funds Available 100% 100% 100% 100% 100% 100% 100% 100% State Aid State aid is categorized by Standards of Quality (SOQ), incentive, categorical, lottery-funded, and other state programs. SOQ are explained in Section 2 of the Code of Virginia indicating the Board of Education is responsible for establishing minimum standards for a quality education program. Standards are subject to revision by the General Assembly who is responsible in determining how state funds are distributed to school divisions to support the cost of maintaining the SOQ.

The General Assembly apportions the cost of the SOQ between state and local governments on a per-pupil cost. The Local Composite Index (LCI) is a formula used to equalize the financial support between the state and local governments. The LCI mathematically combines three separate measures (true values of real estate and public service corporations, adjusted gross income, and taxable retail sales) of local fiscal capacity into an index to measure a locality’s ability to pay for education relative to

68 Financial Section other localities in the state. These three measures are divided by the school division’s average daily membership and the locality’s population. The LCI is recalculated every two years as part of the state’s biennial budget process. For FY 2021, FCPS' LCI is 0.4120—a significant increase from the previous year. The state will fund 58.8 percent of SOQ, while Frederick County is minimally required to support 41.2 percent of the cost. This change in LCI percentages between the locality (county) and state shifts $2.1 million in costs to fund from the state to the county.

FCPS projects $86.9 million in state aid for FY 2021, a 4.7 percent increase compared to FY 2020. The increase of $3.9 million is largely due to enrollment growth and re-benchmarking the costs of Standards of Quality. State aid forecasts assume that state aid will average 48 percent of revenue for the School Operating Fund and will continue to fund on a per-pupil basis with minimal change in the Local Composite Index.

SCHOOL OPERATING FUND – STATE REVENUES FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 INCREASE/ ACTUAL ACTUAL ACTUAL APPROVED APPROVED (DECREASE) I. SOQ Programs Basic Aid 37,412,269 37,951,422 40,297,008 40,409,082 43,386,730 2,977,648 Sales Tax 14,560,987 13,884,503 15,205,440 16,045,216 16,867,866 822,650 Fringe Benefits 7,040,669 7,656,784 7,620,585 7,733,269 8,202,039 468,770 Special Education 4,398,404 4,452,187 4,413,213 4,455,757 3,887,339 (568,418) Career & Technical Education 878,070 888,807 894,127 904,427 945,125 40,698 Remedial Education 1,031,128 1,043,736 1,025,375 1,037,187 1,043,746 6,559 Gifted Education 402,784 407,709 418,353 423,172 443,798 20,626 English as a Second Language1 431,725 457,560 508,863 508,863 696,907 188,044 Remedial Summer School 80,827 78,990 88,901 88,901 81,397 (7,504) Subtotal SOQ Accounts 66,236,863 66,821,698 70,471,865 71,605,874 75,554,947 3,949,073 II. Incentive Programs At-Risk Education 558,125 575,825 603,828 665,871 1,074,652 408,781 Compensation Supplement - 366,753 - 2,398,712 - (2,398,712) Educational Technology 518,000 518,000 518,000 518,000 544,000 26,000 Subtotal Incentive Accounts 1,076,125 1,460,578 1,121,828 3,582,583 1,618,652 (1,963,931) III. Categorical Programs Spec. Ed.-State Programs 562,026 584,992 601,524 615,000 650,000 35,000 Special Education - Jails 92,856 95,350 98,598 106,000 107,000 1,000 Special Education - Homebound 88,762 106,412 100,971 101,477 79,132 (22,345) Subtotal Categorical Accounts 743,645 786,754 801,093 822,477 836,132 13,655 IV. Lottery-Funded Programs K-3 Primary Class Size Reduction 1,061,319 1,072,343 803,315 811,024 868,273 57,249 Early Reading Intervention 175,811 204,431 219,411 221,501 269,851 48,350 Foster Care 106,157 20,403 71,567 83,525 122,365 38,840 SOL Algebra Readiness 119,747 119,946 116,435 116,435 140,577 24,142 Mentor Teacher Program 8,425 7,859 5,778 5,778 8,005 2,227 Regional Programs 1,641,071 1,301,123 1,419,244 1,444,232 1,398,940 (45,292) ISAEP 25,254 24,881 25,065 25,065 25,159 94 Career & Technical Education 102,880 113,295 120,988 141,653 155,643 13,990 Supplemental Lottery Funds 423,407 2,237,265 2,987,122 3,038,520 3,048,807 10,287 VPI Intiativie - - - 208,447 223,181 14,734 Subtotal Lottery-Funded Programs 3,664,071 5,101,546 5,768,925 6,096,180 6,260,801 164,621 V. Other State Programs Subtotal Other State Programs 381,541 396,266 333,126 885,243 2,661,837 1,776,594 TOTAL STATE OPERATING REVENUE 72,102,244 74,566,842 78,496,837 82,992,357 86,932,369 3,940,012

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Other state programs include $1.8 million in state funds the Governor reduced after budget approval due to declining state lottery proceeds and sales tax revenues. Although the $1.8 million in revenue was cut at the state level and will not be received by FCPS, it is still included under "Other State Programs" as an excess appropriation with no cash forthcoming unless economic activity improves. After local budget approval, the Governor reduced state aid by $1.8 million due to the impact of the COVID-19 pandemic on state revenues. Those funds were targeted for salary increases and at-risk programs. Federal Aid Federal aid of $5.4 million for operations is primarily received to supplement basic educational programs under the Every Student Succeeds Act (ESSA) and the Individuals with Disabilities Education Act (IDEA). Federal funds are restricted for the following purposes. • remediate educationally disadvantaged children at schools with high concentrations of poverty • improve educational services for neglected, delinquent, or at-risk students • increase student academic achievement through improving the number of highly-qualified teachers • assist students in attaining English proficiency • ensure school-age children with disabilities receive a free and appropriate education

Federal aid is forecasted in FY 2022 through FY 2024 to be three percent of total funds available for School Operating Fund based on historical trend.

SCHOOL OPERATING FUND – FEDERAL REVENUES FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 INCREASE/ ACTUAL ACTUAL ACTUAL APPROVED APPROVED (DECREASE) I. Every Student Succeeds Act (ESSA) Title I–Part A–Improving Basic Programs 1,200,404 1,601,437 1,397,605 1,369,571 1,450,000 80,429 Title I–Part A–Prior Year Carry-Forward 403,108 - - 100,000 - (100,000) Title I–Part D–Neglected and Deliquent 53,988 43,333 63,448 54,631 61,251 6,620 Title I-Part G-AP Program 1,254 - - - - - Title II–Part A–Improving Teacher Quality 228,955 242,586 241,092 430,775 425,606 (5,169) Title III–Part A–Language Instruction for 39,965 47,161 91,763 78,016 110,590 32,574 English Learners and Immigrant Students Title IV - Part A - Student Support & Academic Enrichment - - 81,519 100,646 104,043 3,397 Sub-total ESSA Accounts 1,927,674 1,934,517 1,875,427 2,133,639 2,151,490 17,851 II. Individuals with Disabilities Education Act (IDEA) IDEA–Title VI-B Regular Grant 2,543,464 2,479,147 2,461,888 2,667,455 2,719,000 51,545 IDEA Title VI-B Prior Year Grant Carry-Forward - - - - 150,000 150,000 IDEA–Title VI-B–619–Preschool Grant 44,592 44,593 46,964 46,964 49,211 2,247 IDEA - Title VI-B - Excellence Grant - 9,983 - - - Sub-total IDEA - Special Education 2,588,056 2,533,723 2,508,852 2,714,419 2,918,211 203,792 III. Other Federal Funds Carl Perkins Vocational & Technical 146,981 148,637 163,987 160,253 165,091 4,838 Schools & Roads Grants 875 3,375 3,178 5,000 5,000 - Other Federal Funds - - - 100,000 200,000 100,000 Preschool Grant - VPI+ 350 715,643 673,364 - - - Sub-total Other Federal Funds 148,207 867,655 840,529 265,253 370,091 104,838 TOTAL FEDERAL REVENUE - OPERATING FUND 4,663,936 5,335,895 5,224,808 5,113,311 5,439,792 326,481

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Sales and Other Receipts Sales and other receipts of $1.1 million support the daily costs to operate the school division and are primarily due to rent of FCPS space to outside agencies and groups, donations and grants from various providers for specific purposes, fees, tuition, and E-Rate technology reimbursement funds. Tuition is collected from students residing outside Frederick County.

Sales and other receipts are forecasted in FY 2022 through FY 2024 to be one percent of total funds available for School Operating Fund based on historical trend.

SCHOOL OPERATING FUND – SALES AND OTHER REVENUE FY 2017 FY 2018 FY 2019 FY2020 FY2021 INCREASE/ ACTUAL ACTUAL ACTUAL APPROVED APPROVED (DECREASE) Rents 357,844 365,791 391,782 360,576 416,576 56,000

Tuition - Private Day School 64,763 38,495 54,936 55,000 55,000 -

Special Fees from Students 69,777 69,115 72,881 70,000 100,000 30,000

Fees - Driver Education Program 49,749 66,310 19,260 50,000 - (50,000)

Tuition - Private - Summer School 28,020 22,030 26,735 23,750 23,750 -

Other Rebates & Refunds 53,327 96,268 76,938 55,000 80,000 25,000

Donations & Grants 94,786 226,904 165,805 365,435 250,000 (115,435)

Sale of Supplies & Equipment 4,215 16,040 24,203 - - -

Sale of Web-site Advertising ------

Insurance Adjustments ------

Other Local Funds 139,852 72,819 56,588 95,000 95,000 -

Erate 124,414 23,554 23,554 355,955 60,000 (295,955)

TOTAL LOCAL REVENUE - OPERATING FUND 986,746 997,326 912,682 1,430,716 1,080,326 (350,390)

71 Financial Section

County General Fund Primary revenue sources for Frederick County Government are real property, personal property, and local sales tax dollars. Frederick County Board of Supervisors appropriates a transfer of revenues to FCPS to support daily school operations. For FY 2021, the county general fund transfer is 49 percent of School Operating Fund revenues—a 2.2 percent increase due to growth in the tax base without increasing tax rates.

Unassigned school operating fund balance at fiscal year-end is subject to Frederick County Board of Supervisors approval to carry-forward to the next school year. Beginning balance amounts are funds for restricted programs. Transfer of excess funds from the School Debt Service Fund provided financial resources for school operations in previous fiscal years.

SCHOOL OPERATING FUND – COUNTY REVENUES FY 2017 FY 2018 FY2019 FY2020 FY2021 INCREASE/ ACTUAL ACTUAL ACTUAL APPROVED APPROVED (DECREASE) County General Fund Transfer 75,038,173 77,273,630 82,331,174 86,445,165 88,307,934 1,862,769 Outstanding Encumbrance 903,813 1,032,256 542,862 - - - Beginning Balance 670,619 1,282,268 503,417 - - - Transfers In from School Funds - 617,478 - - - -

TOTAL COUNTY REVENUE - OPERATING FUND 76,612,605 80,205,632 83,377,453 86,445,165 88,307,934 1,862,769

Estimated Required Local Effort Per Virginia Code §22.1-94, the local required match/effort are funds to be provided by the county to fund schools' cost of maintaining an educational program meeting the prescribed Standards of Quality and certain incentive programs. The total cost is apportioned between the state and the local government.

Estimated Required Local Effort for FY 2021 is $41,970,295 and represents the minimum funding required.

72 Financial Section

Operating Expenditures by State Category (Function) Seventy-six percent or $137,659,642 of operating revenues goes directly to instructing 14,158 students. This is an increase over the prior year of $4,471,921 to support teachers and instructional support positions due to student enrollment growth and the opening of the new Jordan Springs Elementary School.

Twenty-four percent or $44,100,779 of operating revenues provides support services to educating 14,158 students. This includes transporting students to and from school; facilities that are functional, clean and safe; technology for students and staff; health services; and administrative oversight. Operating fund revenues provide for 1,643.9 instructional positions and 506.8 full-time equivalent positions to support student instruction and the educational enterprise—nurses, psychologists, bus drivers, custodians, technology resource teachers, accountants, business analysts, educational specialists, and administrators.

76% of Operating funds go directly to Instruction

Operations & Maintenance 9%

Support Instruction Pupil Services Transportation 76% 24% 6%

Technology 4% Administration 3% Attend. & Hlth. 2%

73 Financial Section

SCHOOL OPERATING FUND EXPENDITURES AND POSITIONS BY STATE CATEGORY % OF FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2021 ACTUAL ACTUAL ACTUAL APPROVED BUDGET APPROVED BUDGET TOTAL $ FTE $ FTE $ FTE $ FTE $ FTE BUDGET INSTRUCTION Classroom 89,602,092 1,220.8 93,630,373 1,241.0 98,100,149 1,274.6 104,257,859 1,299.9 107,473,723 1,332.4 59.1% Guidance 4,499,623 56.0 4,765,691 58.0 4,952,311 58.0 5,192,651 55.0 4,833,138 56.0 2.7% Social Work 1,051,120 11.6 1,112,840 11.6 1,144,077 11.6 1,204,227 18.8 1,752,676 18.8 1.0% Homebound 203,890 - 277,474 2.0 374,769 2.0 473,623 2.0 409,476 2.0 0.2% Improvement of Instruction 6,262,973 55.9 7,172,806 63.2 7,721,940 64.8 8,056,571 71.1 9,058,693 73.9 5.0% Media Services - Library 2,550,535 38.0 2,632,886 37.0 2,681,030 37.0 2,765,167 36.1 2,755,097 37.1 1.5% Office of the Principal 1 10,088,536 117.8 10,378,643 118.8 10,703,764 119.8 11,237,623 120.8 11,376,838 123.8 6.3% Subtotal - Instruction 114,258,770 1,500.1 119,970,713 1,531.6 125,678,040 1,567.8 133,187,721 1,603.7 137,659,642 1,643.9 75.7% ADMINISTRATION Board Services 172,150 0.9 180,539 0.9 175,736 0.9 181,632 0.9 179,475 0.9 0.1% Executive Administration 986,283 7.2 1,009,999 7.2 1,059,243 7.2 1,149,712 7.1 1,178,548 7.1 0.6% Information Services 515,366 5.0 558,250 5.0 589,032 5.0 604,644 4.5 565,988 4.5 0.3% Human Resources 1,195,629 12.6 1,320,696 12.6 1,182,250 8.6 1,046,514 8.6 1,018,027 8.6 0.6% Planning Services 107,433 0.5 112,206 0.8 170,476 0.8 131,626 1.0 146,874 1.0 0.1% Fiscal Services 987,508 7.5 991,772 8.7 1,177,858 12.7 1,532,729 12.5 1,443,861 11.5 0.8% Purchasing Services 179,846 2.0 185,024 2.0 194,551 2.0 204,292 2.0 202,814 2.0 0.1% Reprographics 7,705 - 7,669 - 7,681 - 8,000 - 8,000 - 0.0% 1 Subtotal - Administration 4,151,920 35.6 4,366,155 37.1 4,556,827 37.1 4,859,149 36.6 4,743,587 35.6 2.6% ATTENDANCE AND HEALTH SERVICES Attendance Services 67,208 1.0 76,668 1.0 84,158 1.0 77,158 1.0 77,660 1.0 0.0% Health Services 1,328,367 20.9 1,371,621 20.5 1,366,505 20.5 1,435,537 20.5 1,468,869 21.5 0.8% Psychological Services 1,080,112 12.2 1,092,113 12.5 1,328,855 13.5 1,381,963 13.5 1,398,972 14.5 0.8% Speech/Audiological Svc. 1,752 - 2,430 - 1,515 - 2,350 - 2,500 - 0.0% Subtotal - Attend. & Health 2,477,440 34.0 2,542,832 34.0 2,781,032 35.0 2,897,008 35.0 2,948,001 37.0 1.6% PUPIL TRANSPORTATION Management and Direction 774,760 8.0 771,011 9.0 898,483 9.0 927,389 10.0 1,012,229 10.0 0.6% Vehicle Operation 5,281,454 183.0 5,580,781 185.0 5,903,350 190.0 6,343,894 197.0 6,456,191 198.0 3.6% Monitoring Service 612,600 24.0 603,739 25.0 755,242 30.0 873,708 39.0 887,009 38.0 0.5% Vehicle Maintenance 1,689,563 - 1,947,108 - 2,060,008 - 2,252,478 - 2,234,098 - 1.2% School Bus Purchase 402,163 - 984,689 - 96,452 - - - 100,000 - 0.1% Subtotal - Pupil Trans. 8,760,541 215.0 9,887,328 219.0 9,713,535 229.0 10,397,469 246.0 10,689,528 246.0 5.9% OPERATIONS & MAINTENANCE (O&M) Management and Direction 876,833 7.0 860,971 7.0 919,006 7.0 1,108,162 7.0 1,090,545 7.0 0.6% Building Services 11,095,204 107.0 12,052,751 110.0 11,949,361 114.0 12,369,572 116.0 12,789,893 120.0 7.0% Grounds Services 621,396 2.0 826,667 2.0 575,688 - 564,517 - 614,517 - 0.3% Equipment Services 90,616 - 189,170 - 168,584 - 81,476 - 81,476 - 0.0% Vehicle Services 730,254 - 514,234 - 880,406 - 459,408 - 548,007 - 0.3% Security Services 346,176 5.0 367,889 5.8 341,466 5.8 418,676 6.0 444,661 6.0 0.2% Warehouse & Distribution 158,593 2.0 166,943 2.0 174,113 2.0 188,412 2.0 177,541 2.0 0.1% Subtotal - O&M 13,919,071 123.0 14,978,625 126.8 15,008,623 128.8 15,190,223 131.0 15,746,640 135.0 8.7% FOOD SERVICES - - 11,152 - 8,886 - 5,000 - 8,000 - 0.0% FACILITIES 0.0% Acquire & Improve Sites 319,518 0.5 149,494 0.5 73,747 0.5 80,163 0.5 80,543 0.5 0.0% Architecture & Engineering 143,852 - 478,696 1.0 131,912 - 154,800 - 154,950 - 0.1%

Acquire & Improve Buildings 115 - 105,993 - 145,276 1.0 160,361 1.5 196,786 1.5 0.1% Subtotal - Facilities 463,485 0.5 734,183 1.5 350,935 1.5 395,324 2.0 432,279 2.0 0.2% TRANSFERS TO OTHER FUNDS 559,951 590,034 - 555,709 - 548,707 - 1,127,364 - 0.6% TECHNOLOGY Classroom Instruction 1,602,923 - 1,145,223 - 1,730,647 - 1,899,706 - 1,846,151 - 1.0% Instructional Support 3,456,450 35.7 3,579,445 37.7 3,717,927 38.7 3,968,092 38.2 3,966,337 38.7 2.2% Administration 2,393,181 10.5 2,235,790 10.5 2,076,778 11.5 2,491,845 12.5 2,447,589 12.5 1.3% Pupil Transportation 7,275 - 4,236 - 131,105 - 123,027 127,027 - 0.1% Operation & Maintenance - 13,701 87,669 - 18,277 18,277 - 0.0% Subtotal Technology 7,459,829 46.2 6,978,395 48.2 7,744,126 50.2 8,500,947 50.7 8,405,381 51.2 4.6% CONTINGENCY RESERVE ------0.0% TOTAL OPERATING 152,051,007 1,954.4 160,059,417 1,998.1 166,397,713 2,049.4 175,981,548 2,105.0 181,760,421 2,150.6 100.0% EXPENDITURES

Transfers to other funds include funds for the School Nutrition Fund to support uncollectable student meal accounts and for the School Textbook Fund to purchase textbooks for students.

74 Financial Section

Operating Expenditures by Object Object is another classification of operating expenditures—personnel, operating, capital outlay, payments to regional programs, and transfers to other funds.

SCHOOL OPERATING FUND – EXPENDITURES BY OBJECT % OF FY21 % EXPENSE FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL CHANGE TYPE ACCOUNT DESCRIPTION ACTUAL ACTUAL ACTUAL APPROVED APPROVED BUDGET OVER FY20 Personnel Contracted Wages 88,761,130 91,442,460 96,063,582 101,937,366 102,871,571 56.6% 0.9% Overtime 201,536 259,215 342,954 303,300 354,300 0.2% 16.8% Part-time Wages 1,424,775 1,569,823 1,438,093 1,554,542 1,533,303 0.8% -1.4% Substitutes 2,400,406 2,564,369 2,481,164 2,603,773 2,692,396 1.5% 3.4% Supplemental Wages 1,276,332 1,310,111 1,297,085 1,328,462 1,312,253 0.7% -1.2% Salaries & Wages Total 94,064,180 97,145,978 101,622,878 107,727,443 108,763,823 59.8% 1.0% FICA Tax 6,942,269 7,201,342 7,520,357 7,955,670 8,083,700 4.4% 1.6% VRS Benefits 12,437,300 14,227,096 14,376,879 15,149,194 16,340,686 9.0% 7.9% Medical/Dental Insurance 13,316,432 14,490,103 15,922,949 16,410,841 16,786,257 9.2% 2.3% Group Life Insurance 1,165,089 1,202,174 1,265,482 1,334,300 1,367,130 0.8% 2.5% Disability 41,352 53,298 65,662 90,841 96,829 0.1% 6.6% Unemployment Insurance 627 10,105 3,266 15,000 15,000 0.0% 0.0% Retiree Health Care Credit 910,273 1,040,712 1,068,017 1,125,977 1,154,354 0.6% 2.5% Workers Compensation 475,510 443,508 493,776 583,744 522,596 0.3% -10.5% Other Benefits 560,819 682,218 653,612 891,688 778,692 0.4% -12.7% Employee Benefits Total 35,849,671 39,350,556 41,370,000 43,557,255 45,145,244 24.8% 3.6% Personnel Total 129,913,851 136,496,534 142,992,878 151,284,698 153,909,066 84.7% 1.7% Operating Advertising 9,966 2,883 5,865 13,590 10,590 0.0% -22.1% Contracted Services 2,054,783 2,279,173 2,379,990 3,433,196 5,267,095 2.9% 53.4% Cultural Activities 13,187 13,091 11,781 14,800 15,100 0.0% 2.0% Laundry/Uniforms 14,888 20,136 20,157 22,200 22,300 0.0% 0.5% Printing 46,418 45,330 57,258 61,903 61,918 0.0% 0.0% Private Carriers 7,600 404 - 850 850 0.0% 0.0% Repairs & Maintenance 1,794,305 2,469,191 2,087,995 2,696,559 2,789,999 1.5% 3.5% Purchased Services Total 3,941,148 4,830,208 4,563,046 6,243,098 8,167,852 4.5% 30.8% Data Plans 3,510 2,940 2,825 193,500 193,100 0.1% -0.2% Insurance 414,038 425,972 430,478 451,504 468,507 0.3% 3.8% Lease/Rent 457,900 472,240 763,718 609,154 604,405 0.3% -0.8% Memberships 42,125 42,504 56,156 45,372 55,781 0.0% 22.9% Telecom/Postage 423,198 383,012 373,789 258,984 264,749 0.1% 2.2% Travel 530,779 660,769 698,519 702,096 731,951 0.4% 4.3% Utilities 2,948,561 3,088,157 3,029,323 3,612,345 3,784,957 2.1% 4.8% Other Charges Total 4,820,111 5,075,594 5,354,808 5,872,955 6,103,450 3.4% 3.9% Instructional Supplies 1,409,457 1,652,920 1,732,978 1,743,964 1,900,792 1.0% 9.0% Materials & Supplies 1,998,948 2,392,288 2,276,200 2,048,534 2,230,692 1.2% 8.9% Technology Hardware 1,444,118 1,132,428 2,039,544 648,156 754,555 0.4% 16.4% Technology Software 1,754,704 1,851,959 1,633,011 1,807,479 1,878,037 1.0% 3.9% Vehicle Fuel & Supplies 449,232 529,818 563,283 582,321 607,521 0.3% 4.3% Materials & Supplies Total 7,056,459 7,559,413 8,245,016 6,830,454 7,371,597 4.1% 7.9% Operating Total 15,817,718 17,465,215 18,162,870 18,946,507 21,642,898 11.9% 14.2% Capital Capital - New 1,250,745 1,568,244 700,588 481,686 175,231 0.1% -63.6% Capital - Replacement 1,209,827 392,423 534,816 623,435 709,435 0.4% 13.8% Capital Outlay Total 2,460,571 1,960,667 1,235,404 1,105,121 884,666 0.5% -19.9% Capital Total 2,460,571 1,960,667 1,235,404 1,105,121 884,666 0.5% -19.9% Payments to Joint Operations Total 3,298,916 3,546,967 3,450,853 4,096,515 4,196,427 2.3% 2.4% Transfers Total 559,951 590,034 555,709 548,707 1,127,364 0.6% 105.5% Grand Total 152,051,007 160,059,417 166,397,713 175,981,548 181,760,421 100.0% 3.3%

75 Financial Section

Operating Expenditure Assumptions, Trends, & Significant Shifts from Current Year Personnel Eighty-five percent of operating revenues goes to support wages and benefits for 2,150.7 full-time equivalent positions (ftes). For FY 2021, personnel expenses are expected to increase by $2,624,368 or 1.7 percent due to the following variables and their assumptions. • addition of 38.9 full-time equivalent positions to open the new Jordan Springs Elementary School at a cost of $2,475,331 • addition of 6.7 full-time equivalent positions to support a two percent enrollment growth and support early reading programs at a projected cost of $432,000 • new teaching positions are costed to have five years of experience • more teachers will be eligible for disability benefit under the VRS Hybrid Plan defined contribution retirement benefit plan • no salary increase for staff • health insurance premiums will not increase based on usage trends • less employees will be eligible for retirement at a projected savings of $282,963 • increased costs for the Virginia Retirement System rate are offset by savings in employee turnover

Operating Twelve percent of operating revenues support consumable operating items including purchased services, utilities, materials, supplies, and other charges. FY 2021 operating expenses are expected to increase by $2,696,392 or 14.0 percent due to the following variables and assumptions. • contracts with instructional service suppliers (speech, occupational, and physical therapies) will increase by three percent due to expected provider prices and more students served • technology devices will cost less than $5,000 per unit which qualifies them as an operating expense versus a capital outlay • contracted services includes $1.8 million in excess appropriation for FY 2021 that will not be spent. This amount reflects the state funding reduction due to COVID-19 pandemic after the budget was adopted.

Capital Outlay Less than one percent of operating revenues support capital outlays for new or replacement equipment, vehicles, and buses. Based on bus ridership and condition, FCPS should replace 13 buses annually. Restoration of recurring capital outlay funds to replace buses has not occurred due to other priorities and the assumption that the County Board of Supervisors will allocate nonrecurring funds from county unreserved fund balance to support critical bus replacements.

Payments to Joint Operations Two percent of operating revenues support FCPS' share of regional programs – Northwestern Regional Educational Program and Mountain Vista Regional Governor’s School. Payments are based on estimated student enrollment in those programs.

Transfers Operating revenues of $1,097,364 are transferred to the School Textbook Fund based on the county’s share of textbook costs through the Standards of Quality. Also included here is a $30,000 transfer of funds to the School Nutrition Fund for uncollectible student meal accounts.

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Education is a people-intensive business – 85% of operating revenues support personnel

Purchased Services, 5%

Other Charges, 3% Salaries & All Benefits Other 15% 85% Materials & Supplies, 4%

Regional Programs, 2%

Capital Outlay/Transfer 1%

77 Financial Section

School Textbook Fund School Textbook Fund is a governmental, special revenue fund for the purchase of adopted textbooks to support FCPS’ curriculum. Textbooks are provided free of charge to all students.

SUMMARY OF SCHOOL TEXTBOOK FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 1,714,833 2,686,747 2,911,443 1,730,367 864,136 - - 622,612

Receipts Interest 12,196 32,635 39,065 20,000 20,000 20,000 20,000 20,000 State Aid 884,353 895,167 825,960 835,475 883,240 883,240 883,240 883,240 Sales and Other Receipts 7,768 1,971 1,552 6,500 6,500 6,500 6,500 6,500 Total Receipts 904,317 929,774 866,577 861,975 909,740 909,740 909,740 909,740

Transfers In School Operating Fund 558,345 570,512 536,298 533,707 1,097,364 1,351,363 618,869 618,869 Other School Funds ------

Total Funds Available 3,177,495 4,187,033 4,314,318 3,126,049 2,871,240 2,261,103 1,528,609 2,151,221

Disbursements Personnel 21,876 22,826 24,240 24,921 25,104 28,242 29,654 31,137 Operating 468,872 1,252,764 2,358,033 2,871,071 2,846,136 2,232,861 876,343 900,884 Capital Outlay - - Total Expenditures 490,748 1,275,590 2,382,272 2,895,992 2,871,240 2,261,103 905,997 932,021

Total Disbursements 490,748 1,275,590 2,382,272 2,895,992 2,871,240 2,261,103 905,997 932,021

Ending Balance, June 30 2,686,747 2,911,443 1,932,045 230,057 - - 622,612 1,219,200 Nonspendable ------Committed 2,686,747 2,911,443 1,932,045 230,057 - - 622,612 1,219,200 Restricted ------Assigned ------Unassigned ------

Textbook Revenues – Description, Assumptions, and Changes Revenues for textbooks are provided by the state Standards of Quality (SOQ) aid, county funding through a transfer from the operating fund, and miscellaneous receipts including interest and sales through student fees from lost or damaged textbooks. The amount of revenues from state and county sources for textbooks is determined based on a SOQ per-pupil amount calculated through the Local Composite Index (LCI). The per-pupil funded amount for FY 2021 is $107.47 of which the state share is 58.8% and the county share is 41.2%. Revenues are based on an expected average daily student membership of 13,974—98.7% of the projected 14,158 student enrollment. Forecasted revenues assume that average K-12 daily membership will remain stable at 13,974 students, and the funded per-pupil amount and LCI will not change significantly.

Years 2021 and 2022 include a local subsidy of funds (through a School Operating Fund transfer) to support textbook adoptions that were delayed due to funding limitations in previous years.

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Textbook Expenditures – Description, Assumptions, and Changes A 0.5 full-time equivalent position to manage division-wide textbook inventory is accounted for under personnel in the textbook fund. Operating expenditures are primarily textbooks determined by an adoption schedule set by the Virginia Department of Education, which can vary from year-to-year. For FY 2021 and forecasted years FY 2022–2024, textbook adoptions are as shown in the following table.

FY 2021 FY 2022 FY 2023 FY 2024 Science at all levels World Language 6-12 No new adoptions No new adoptions

High School English High School Math

Elementary & High Health

Textbook Fund Balance – Description, Assumptions, and Changes Textbook fund balance represents an excess of revenues over expenses and is committed for future textbook purchases. Based on projected revenue and textbook adoption forecasts, fund balance will be depleted beginning in FY 2021. Additional funds transferred from the operating fund will be required in FY 2021 and FY 2022 to purchase textbooks based on the adoption schedule and estimated costs.

79 Financial Section

School Nutrition Services Fund School Nutrition Services Fund is a governmental, special revenue fund to account for resources restricted toward expenditures to operate the school breakfast and lunch programs. The fund is categorized as governmental, special revenue opposed to business enterprise because federal revenues for specific purposes are the primary revenue source. The program serves about 1.6 million meals annually including breakfast, lunch, and a la carte items. FCPS participates in the National School Lunch Program, which provides federal subsidy funding for eligible students with certain financial needs.

Menus for all programs are planned and implemented according to U.S. Department of Agriculture (USDA) requirements and Dietary Guidelines for Americans. Meals with reduced fat, sodium, and sugar are prepared and served. Nutrient analysis of menus and ingredient lists for all foods purchased are available to assist parents and students with special needs and cultural restrictions.

The School Nutrition Services Program realizes efficiencies through online ordering and warehousing USDA commodities. The federal Healthy, Hunger Free Act requires well-balanced meals including more fresh fruits, vegetables, and whole grains be served.

SUMMARY OF SCHOOL NUTRITION SERVICES FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 1,942,843 2,414,992 2,640,430 1,800,000 1,575,228 1,575,228 1,575,228 1,575,228

Receipts Interest 9,587 27,981 27,552 22,000 27,552 27,552 27,552 27,552 State Aid 96,634 103,208 107,190 102,003 115,090 115,090 115,090 115,090 Federal Aid 2,568,918 2,655,172 2,712,947 2,842,585 3,042,650 3,133,930 3,227,947 3,324,786 Sales and Other Receipts 2,365,491 2,275,534 2,371,873 2,596,969 2,791,224 2,876,058 2,960,769 3,048,021 Total Receipts 5,040,630 5,061,895 5,219,561 5,563,557 5,976,516 6,152,630 6,331,358 6,515,449

Transfers In School Operating Fund 1,606 19,522 19,411 15,000 30,000 30,000 30,000 30,000

Total Funds Available 6,985,079 7,496,409 7,879,402 7,378,557 7,581,744 7,757,858 7,936,586 8,120,677

Disbursements Personnel 2,493,048 2,532,440 2,742,752 3,012,019 3,061,991 3,153,851 3,248,466 3,345,920 Operating 2,062,451 2,137,443 2,457,524 2,329,100 2,722,115 2,803,778 2,887,892 2,974,529 Capital Outlay 14,587 186,095 894,307 237,438 222,410 225,000 225,000 225,000 Total Expenditures 4,570,087 4,855,978 6,094,582 5,578,557 6,006,516 6,182,629 6,361,358 6,545,449

Total Disbursements 4,570,087 4,855,978 6,094,582 5,578,557 6,006,516 6,182,629 6,361,358 6,545,449

Ending Balance, June 30 2,414,992 2,640,430 1,784,819 1,800,000 1,575,228 1,575,228 1,575,228 1,575,228 Nonspendable 235,775 232,432 279,516 250,000 250,000 250,000 250,000 250,000 Committed 2,179,217 2,407,998 1,505,303 1,550,000 1,325,228 1,325,228 1,325,228 1,325,228 Restricted ------Assigned ------Unassigned ------School Nutrition Revenue – Description, Assumptions, & Changes Revenues to support the school nutrition program are provided by two major sources – federal aid and sales to students and staff. Federal revenues are based on cash reimbursements and USDA commodities. Cash reimbursements are based on the total number of meals served to all students. Reimbursement rates per participating student are greater for economically disadvantaged students. Lunch sales to students and federal aid estimates and forecasts are based on the assumption that 47 percent of the student membership will participate in the school nutrition program. Of these participants, half will be eligible for free or reduced priced meals. State revenues are received to meet maintenance of effort and match requirements due to the receipt of federal funds. The state reimbursement rate is based on the number of reimbursable lunches served the prior year.

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Rates used in revenue estimates and forecasts are based on the following variables and historical trends. Participation in the school lunch program is increasing.

Weighted Average All Participation % of Free or Reduced % of Weighted Average Fiscal Year Other Revenue per Total Membership Total Membership Federal Aid per Meal Meal 2017 49% 33% $1.71 $1.65 2018 46% 35% $1.78 $1.69 2019 46% 34% $1.78 $1.79 2020 47% 37% $1.87 $1.82

School Nutrition Expenditures – Description, Assumptions, & Changes Personnel expenses (wages and employee benefits) for 94.4 full-time equivalent positions are 51 percent of total disbursements for the school nutrition fund. School nutrition employees include cooks, cafeteria managers, program supervisor, clerical support, and nutrition specialist. Personnel expenses are forecasted to increase three percent each year for cost of living following FY 2021.

Food cost is 84 percent of school nutrition operating expenditures. Food cost estimates and forecasts are based on predicted number of meals to be served (based on projected student enrollment and participation) and historical average food cost per meal adjusted upward by a three percent inflation factor.

Significant changes in capital outlay expenditures occurred in FY 2019 to renovate the cafeteria serving line at Sherando High School to serve students more efficiently.

Rates used in the expenditure estimates and forecasts are based on the following variables, productivity targets, and trends.

Weighted Average Food Cost Weighted Average Labor Fiscal Year Meals per Labor Hour per Meal Cost per Meal 2017 $1.20 $1.66 14.4 2018 $1.25 $1.71 14.4 2019 $1.27 $1.85 14.4 2020 $1.50 $1.88 14.1

School Nutrition Fund Balance – Description, Assumptions, & Changes School Nutrition fund balance represents excess revenues over expenditures and is committed for school nutrition operations the next school year. The nonspendable portion of fund balance represents the value of food inventory on-hand at June 30. Per federal guidelines, school nutrition fund balance amount is not to exceed three months of school nutrition operating costs. Fund balance is forecasted to remain level and within federal guidelines.

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Special Grants Fund Special Grants Fund is a governmental, special revenue fund to account for revenues for specific expenditures over a multiple year period of time or serving multiple jurisdictions or agencies. The FY 2021 budget is approved for amounts based on cash balances as of June 30, 2020, plus receipts during the fiscal year. Currently, there is no activity for this fund.

SUMMARY OF SPECIAL GRANTS FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FORECAST FORECAST FORECAST Beginning Balance, July 1 ------

Receipts Interest ------State Aid ------Federal Aid ------Sales and Other Receipts ------Total Receipts ------

Transfers In County General Fund ------School Operating Fund ------Other School Funds ------

Total Funds Available ------

Disbursements Personnel ------Operating ------Payments to Joint Operations ------Capital Outlay ------Capital Projects ------Debt Service ------Total Expenditures ------

Transfers to Other School Funds ------

Total Disbursements & Transfers ------

Ending Balance, June 30 ------Nonspendable ------Committed ------Restricted ------Assigned ------Unassigned ------

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Debt Service Fund School Debt Service Fund is a governmental fund to account for the payment of long-term debt from the sale of bonds to finance major school construction projects. Bonds are amortized over 20 years.

SUMMARY OF SCHOOL DEBT SERVICE FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 113,879 30,470 20,823 23,282 297,059 - - - Receipts State Aid 94,742 127,343 157,162 179,505 298,860 311,048 242,269 220,656 Federal Aid 276,973 277,865 279,055 275,782 275,782 275,782 275,782 275,782 Total Receipts 371,715 405,208 436,217 455,287 574,642 586,830 518,051 496,438 Transfers In County General Fund 15,972,475 15,972,475 14,579,320 16,248,300 17,085,531 18,402,888 16,912,637 15,566,334 Total Funds Available 16,458,069 16,408,152 15,036,360 16,726,869 17,957,232 18,989,718 17,430,688 16,062,772 Disbursements Personnel ------Operating 16,350 16,100 19,750 25,000 25,000 30,000 30,000 30,000 Debt Service Redemption of Principal 10,863,296 10,784,583 10,341,220 11,195,047 12,078,540 13,021,944 12,125,784 11,305,000 Redemption of Interest 5,547,953 4,969,168 4,643,493 5,506,822 5,853,692 5,937,774 5,274,904 4,727,772 Debt Service Sub-total 16,411,249 15,753,751 14,984,713 16,701,869 17,932,232 18,959,718 17,400,688 16,032,772 Total Expenditures 16,427,599 15,769,851 15,004,463 16,726,869 17,957,232 18,989,718 17,430,688 16,062,772 Transfers to Other School Funds - 617,478 - - - - Total Disbursements & Transfers 16,427,599 16,387,329 15,004,463 16,726,869 17,957,232 18,989,718 17,430,688 16,062,772 Ending Balance, June 30 30,470 20,823 31,896 - - - - - Nonspendable ------Committed ------Restricted ------Assigned 30,470 20,823 31,896 - - - - - Unassigned ------

School Debt Service Revenue The fund is supported by a transfer of revenues from Frederick County’s General Fund. State law prohibits school divisions from entering into debt that extends beyond the current fiscal year without the approval of the Frederick County Board of Supervisors, the local governing body. Once debt is approved and issued, it is listed in the name of Frederick County. FCPS also receives federal aid through the Qualified School Construction Bond Program as provided under theAmerican Recovery and Reinvestment Act. This federal aid provides funds for interest payment on a $7.0 million bond sold to construct the new transportation facility. Further, interest credits are received from the state through refinancing previous serial bond issues. School Debt Service Expenditures Revenues pay principal, interest, and service fees to outside agencies administering bonds. Virginia Public School Authority (VPSA) bonds are sold to pay for most school construction and renovation. Bond sales are based on cash flow estimates as construction schedules are determined. For FY 2021, principal and interest payments are increasing due to Jordan Springs Elementary School and Robert E. Aylor Middle School active construction projects. School Debt Service Forecast – Assumptions and Trends The forecast beyond FY 2021 does not include financing to support new construction projects listed in the Capital Improvements Plan (CIP), such as constructing the fourth high school. The County Board of Supervisors has not approved funding for the CIP. For existing debt issues and active construction project borrowings, principal and interest payments will peak in FY 2022 and begin to decline in FY 2023.

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Relationship Between Current Debt Levels and Legal Debt Limits Virginia does not impose a debt limitation on Frederick County. Frederick County adopted debt management policies to ensure financial sustainability. Debt management policies follow. • The county will confine long-term borrowing to capital improvements that cannot be financed from current revenues except where approved justification is provided. • When the county finances capital improvements or other proceeds by issuing bonds or entering into capital leases, it will repay the debt in a period not to exceed the expected useful life of the project. • The county will not use long-term debt for current operations. • Tax Supported 10-year Payout Ratio should be greater than 65%. The 10-year payout ratio measures the amount of principal to be retired in 10 years. • Debt to Assessed Value should be in a range not to exceed 0.75%-1.75%. • Debt Service vs. Governmental Expenditures Ratio should be in a range not to exceed 8-12%. Governmental expenditures represent the ongoing operating expenditures of the County and School Board. In this calculation, debt service and capital expenditures are excluded from expenditures.

School debt is a portion of all county debt. At the close of fiscal year 2019, schools' outstanding debt was $123,996,315 or almost 76 percent of total county gross bonded debt. To maintain a high bond rating and level of indebtedness managed with existing resources, the county’s ratio of Net General Bonded Debt to assessed value was 1.31% in fiscal year 2019.

Replacement Robert E. Aylor Middle School under construction

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Construction Fund School Construction Fund is a governmental, capital projects fund to account for revenues and expenditures to construct major capital projects. The Capital Improvement Plan is included in the Comprehensive Policy Plan of Frederick County, Virginia.

To keep pace with student enrollment increases and improvements to aging facilities, the School Board approved five projects on the Capital Improvement Plan as adopted by the School Board November 2019. Most capital projects are funded with Virginia Public School Authority Bonds sold twice annually and repaid over twenty years through the School Debt Service Fund. As funding for projects are approved and construction activities occur, project expenditures and proceeds from the sales of bonds are accounted for in the School Construction Fund.

Capital Improvement Plan (CIP) Adopted by the School Board November 2019 Estimated Approval & First Appearance Construction Opening Total Cost in Project Appropriation on CIP Timeline Timeline Today’s Timeline Dollars July 2021 – June New High School 2005-10 CIP By June 2021 August 2024 $99.6M 2024 James Wood High July 2022 – June School Renovations & 2006-11 CIP By June 2022 August 2025 $66.0M 2025 Additions Armel Elementary July 2022 – June School Addition & 2015-20 CIP By June 2022 August 2024 $13.6M 2024 Renovation Indian Hollow July 2022 – June Elementary School 2025-25 CIP By June 2022 August 2023 $8.0M 2023 Renovation School Board Office July 2024 – June Renovation and 2007-12 CIP By June 2024 August 2025 $4.0M 2025 Expansion Sherando High School Renovations & 2012-17 CIP By June 2025 July 2025 – TBD TBD $62.6M Additions Apple Pie Ridge Elementary School 2006-11 CIP By June 2025 July 2025 – TBD TBD $14.4M Phase 2 Renovation

Variances from year to year are due to the number of schools necessary to address student enrollment growth and condition of existing facilities. Further, estimated project costs will vary over time as costs of design, materials, labor, and overhead change. Cost estimates include building construction, site construction, escalation, land purchase, design, furniture, fixtures, equipment, technology, construction management, third party testing, water and sewer connection fees, commissioning, site studies and testing, review fees, surveying, legal, and other miscellaneous costs.

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SUMMARY OF SCHOOL CONSTRUCTION FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FORECAST FORECAST FORECAST

Beginning Balance, July 1 8,620,572 2,150,320 6,877,311 25,453,842 26,978,879 - - -

Receipts Interest 22,806 23,680 397,568 264,010 - - - - Sales and Other Receipts - - 12,950 2,028,102 - - - - Proceeds-Sale of Bonds - 6,753,720 27,510,926 22,555,000 16,400,000 - - - Total Receipts 22,806 6,777,399 27,921,444 24,847,111 16,400,000 - - -

Transfers In Transfers from School Operating ------Transfers from County Gov't. ------

Total Funds Available 8,643,377 8,927,719 34,798,756 50,300,954 43,378,879 - - -

Disbursements Frederick County Middle School Replacement 5,338,438 1,247,301 ------Armel Elementary Addition 324,510 - - - 7,770 - - - Jordan Springs Elementary School 808,110 789,912 7,220,669 14,251,014 5,188,201 - - - Robert E. Aylor Middle School Replacement - - 2,124,244 9,020,565 37,555,190 - - - Fourth High School 22,000 13,195 - 50,495 627,718 James Wood High School Renovation - - - - Sherando High School Renovation - - - -

Total Disbursements 6,493,058 2,050,408 9,344,914 23,322,074 43,378,879 - - -

Ending Balance, June 30 2,150,320 6,877,311 25,453,842 26,978,879 - - - - Nonspendable - - - - Committed 2,150,320 6,877,311 25,453,842 26,978,879 Restricted - - - Assigned - - - - Unassigned - - - -

After a series of public meetings and presentations, the CIP and budget are adopted separately by the School Board and the Frederick County Board of Supervisors. Once appropriation for a project is approved, remaining project appropriation is carried into the subsequent fiscal year. Due to the nature of construction variables, it is too difficult to determine the amount of money expected to be expended in a specific twelve-month period. Therefore, expenditures are compared against project budgets, which are updated to the fiscal year’s budget upon completion of the previous fiscal year. All expenditures are capital projects and accounted for as long-term fixed assets.

Significant Changes in Estimates and Forecasts Receipts for the construction fund include sale of investment and proceeds from the sale of bonds. Estimates for FY 2020 include revenues from the sale of bonds to finance construction of Jordan Springs Elementary School, located at Snowden Bridge, opening August 2020 and the replacement Robert E. Aylor Middle School scheduled to open August 2021. Estimates for FY 2021 include remaining proceeds from the sale of bonds to complete construction on the replacement Robert E. Aylor Middle School. Forecasts illustrate no action by the County Board of Supervisors to fund construction projects on the Capital Improvement Plan.

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Capital Improvements Impact to Operating Budget Opening new schools impacts the operating budget. Costs which are attributed to opening a new facility are support staff specific to a school opening, insurance, utilities, start-up activity funds, machinery, supplies, and equipment. Regular classroom teachers assigned to a new school are not included in the operating impacts of new schools. New teachers added to the operating budget are to address student enrollment growth. Teachers are needed for additional students whether located in temporary classrooms or classrooms in a new building. Further, FCPS builds all new facilities as “turn-key,” meaning all furniture and equipment are included in the cost of a new facility. The following summary provides estimated additional operating costs for opening new schools.

• Personnel – salaries and fringe benefits for staffing required Schools Staffing Position All Principal All Assistant Principals All School Administrative Assistants and Account Clerks All Resource teachers – Art, Music, PE, Intervention All Guidance Counselors All Librarian All Library Assistant All School Nurse All Technology Coach All Custodians All Maintenance Technician High Coordinator of Student Activities

• Operating – services, materials and supplies, other charges for all schools - Insurance (property, casualty, and liability) - Utilities (electric, heating, water, sewer, telecommunications, dumpster, etc.) - Supplies and materials (custodial uniforms, instructional and office supplies, machinery)

The following are estimated additional operating costs for opening Jordan Springs Elementary School.

FY21 FY22 FY23 FY24 Elementary School Personnel $2.5M - - - Operating $0.3M - - - Total Elementary School $2.8M - - - Number Schools Opening 1 - - -

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Capital Projects Fund School Capital Projects Fund is a governmental, capital projects fund to account for the purchase of capital items not reflected in the school operating budget and School Board Capital Improvement Plan. Capital items purchased through this fund include items that exceed normal maintenance costs or major construction projects. Typically, funding for these expenditures are supplied by the county’s proffers fund and general funds approved by the County Board of Supervisors.

SUMMARY OF CAPTIAL PROJECTS FUND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 4,099,481 1,220,062 1,397,186 1,300,000 700,000 - - -

Transfers In County General Fund - 3,088,287 3,564,000 4,000,000 3,715,900 9,008,700 7,842,000 8,724,000 School Operating Fund ------Other School Funds ------

Total Funds Available 4,099,481 4,308,349 4,961,186 5,300,000 4,415,900 9,008,700 7,842,000 8,724,000 - Disbursements Personnel ------Operating - 776,264 297,966 1,300,000 1,879,300 - - - Capital Outlay Buildings 1,991,217 1,390,986 2,312,091 2,366,767 2,536,600 9,008,700 7,842,000 8,724,000 School Buses 888,202 530,008 461,861 800,000 - - - - Technology Equipment - 2,958 - 833,233 - - - - Vehicles - 210,946 ------Total Expenditures 2,879,419 2,911,163 3,071,919 5,300,000 4,415,900 9,008,700 7,842,000 8,724,000

Transfers to Other School Funds ------

Total Disbursements and Transfers 2,879,419 2,911,163 3,071,919 5,300,000 4,415,900 9,008,700 7,842,000 8,724,000

Ending Balance, June 30 1,220,062 1,397,186 1,889,267 - - - - - Nonspendable ------Committed 1,220,062 1,397,186 1,889,267 - - - - - Restricted ------Assigned ------Unassigned ------

In recent years, this fund accounted for critical vehicle and equipment replacement schedules related to school buses, technology, and facilities normally funded by the school operating fund. Recurring operating funds were cut during the Great Recession and have not been fully restored creating a preventative maintenance and replacement cycle backlog. For FY 2021, funding for the following facilities asset replacements is provided from county proffer funds. • Apple Pie Ridge Elementary cooling tower replacement—$400,000 • Apple Pie Ridge Elementary playground replacement—$136,600 • Dowell J. Howard Center electrical lighting—$128,300 • James Wood Middle roof replacement—$800,000 • Middletown Elementary HVAC chiller replacement and upgrade humidity controls—$750,000 • Orchard View Elementary partial roof replacement—$500,000 • Sherando High HVAC chiller replacement—$750,000 • Sherando High repair and resurface parking lot—$251,000

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The Capital Projects Fund forecasts for FY 2022 through FY 2024 facility asset replacements as scheduled in the Capital Asset Plan.

Additional capital projects included in the School Operating Fund forecast include the following.

FY 2022 FY 2023 FY 2024 Facilities Preventative Maintenance $778,200 $1,667,300 $237,200 Bus replacements $1,300,000 $1,300,000 $1,300,000 Technology equipment 500,000 500,000 500,000 Total additional $2,578,200 $3,467,300 $2,037,200

Fiduciary Funds Combined Financial Statement Fiduciary funds account for assets held by the school division as a trustee or agent. Agency funds such as Northwestern Regional Education Programs Operating and Textbook Funds are custodial and do not involve measurements of results of operations. Trust funds such as Private Purpose Funds account for activities in which money donated is to be used for special purposes as identified in the trust agreement.

SUMMARY OF FIDUCIARY FUNDS

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 628,693 694,811 880,746 490,000 906,437 320,000 320,000 320,000

Receipts Interest/Gains 5,913 16,024 21,976 3,500 5,000 - - - State Aid 39,444 39,444 26,000 26,000 26,000 26,000 26,000 26,000 Federal Aid ------Sales and Other Receipts 4,792,284 4,954,241 4,929,616 5,806,040 5,824,476 5,840,887 6,012,209 6,188,588 Total Receipts 4,837,642 5,009,709 4,977,592 5,835,540 5,855,476 5,866,887 6,038,209 6,214,588

Transfers In County General Fund ------School Operating Fund ------Other School Funds - - - - 10,000 10,000 10,000 10,000

Total Funds Available 5,466,335 5,704,520 5,858,338 6,325,540 6,771,913 6,196,887 6,368,209 6,544,588

Disbursements Personnel 3,846,872 4,079,434 4,464,598 5,023,117 5,004,839 5,154,984 5,309,633 5,468,922 Operating 866,400 704,559 682,856 658,352 650,637 666,903 683,576 700,665 Capital Outlay 31,436 - - 4,071 29,000 45,000 45,000 45,000 Private Purpose Activity 26,816 39,781 58,797 300,000 500,000 - - - Total Disbursements 4,771,524 4,823,774 5,206,250 5,985,540 6,184,476 5,866,887 6,038,209 6,214,588

Transfers to Other School Funds - - - - 10,000 10,000 10,000 10,000

Total Disbursements and Transfers 4,771,524 4,823,774 5,206,250 5,985,540 6,194,476 5,876,887 6,048,209 6,224,588

Ending Balance, June 30 694,811 880,746 652,088 340,000 577,437 320,000 320,000 320,000 Nonspendable ------Committed ------Restricted 694,811 880,746 652,088 340,000 577,437 320,000 320,000 320,000 Assigned ------Unassigned ------

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NREP Operating and Textbook Funds Combined Frederick County Public Schools serves as fiscal agent of the Northwestern Regional Education Program (NREP). NREP serves over 250 students needing specialized educational services from the public school systems of Clarke County, Winchester City, and Frederick County. Specialized educational services are provided for early childhood special education and children with emotional and multiple disabilities. Services not only include classroom instruction but also comprehensive support services including adaptive physical education, counseling, nursing, music, and occupational therapies.

As fiscal agent of NREP, FCPS retains custody of and fiduciary responsibility for money. FCPS exercises no independent control of the use of the monies for this program. Rather, a board representing each participating school division decides the use of funds for the program.

SUMMARY OF NREP OPERATING AND TEXTBOOK FUNDS FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 354,932 378,253 502,668 340,000 577,437 320,000 320,000 320,000 Receipts Interest/Gains 4,375 11,675 14,591 - - - - - State Aid 39,444 39,444 26,000 26,000 26,000 26,000 26,000 26,000 Federal Aid ------Sales and Other Receipts 4,724,211 4,857,289 4,811,334 5,659,540 5,658,476 5,840,887 6,012,209 6,188,588 Total Receipts 4,768,030 4,908,408 4,851,925 5,685,540 5,684,476 5,866,887 6,038,209 6,214,588 Transfers In County General Fund ------School Operating Fund ------Other School Funds - - - 10,000 10,000 10,000 10,000 Total Funds Available 5,122,961 5,286,660 5,354,593 6,025,540 6,271,913 6,196,887 6,368,209 6,544,588 Disbursements Personnel 3,846,872 4,079,434 4,464,598 5,023,117 5,004,839 5,154,984 5,309,633 5,468,922 Operating 866,400 704,559 682,856 658,352 650,637 666,903 683,576 700,665 Capital Outlay 31,436 - - 4,071 29,000 45,000 45,000 45,000 Private Purpose Activity ------Total Disbursements 4,744,708 4,783,993 5,147,454 5,685,540 5,684,476 5,866,887 6,038,209 6,214,588 Transfers to Other School Funds - - - - 10,000 10,000 10,000 10,000 Total Disbursements and Transfers 4,744,708 4,783,993 5,147,454 5,685,540 5,694,476 5,876,887 6,048,209 6,224,588 Ending Balance, June 30 378,253 502,668 207,139 340,000 577,437 320,000 320,000 320,000 Nonspendable ------Committed ------Restricted 378,253 502,668 207,139 340,000 577,437 320,000 320,000 320,000 Assigned ------Unassigned ------

NREP Revenue Primary revenue component of this fund is tuition billings to each participating locality. Tuition billings are based on a rolling three-year average student enrollment in the program. The state provides grant funds to purchase additional technology to support the SOL technology initiative through the VPSA Technology program.

NREP Expenditures NREP funds support 77.8 full-time equivalent positions making personnel the greatest cost driver of the program. Forecasts assume that personnel costs will increase each year by 3.0 percent to support salaries and health insurance. Student enrollment is forecasted to remain stable; therefore, the number of positions is forecasted to remain level. Operating accounts include purchased services, travel, utilities, and instructional supplies. These operating costs are forecasted to grow 2.5 percent based on recent consumer price index.

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Private Purpose Funds Frederick County Public Schools maintains two Private Purpose Funds – the Private Purpose Income Fund and the Private Purpose Endowment Fund. These funds account for gifts from private donors and are restricted for special purposes. Fund balances are restricted and brought forward each year into the next fiscal period when necessary. Scholarships and other initiatives associated with the School Board’s mission are examples of activities accounted here. Donated funds and financial activities for special purposes such as Bright Futures are also recorded here. Forecasts are not included for this fund due to the variable and non-recurring nature of donations and grants received.

SUMMARY OF PRIVATE PURPOSE FUNDS FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 273,761 316,558 378,078 150,000 329,000 - - -

Receipts Interest/Gains 1,538 4,349 7,385 3,500 5,000 - - - State Aid ------Federal Aid ------Sales and Other Receipts 68,073 96,952 118,282 146,500 166,000 - - - Total Receipts 69,612 101,301 125,667 150,000 171,000 - - -

Transfers In County General Fund ------School Operating Fund ------Other School Funds ------

Total Funds Available 343,374 417,859 503,746 300,000 500,000 - - -

Disbursements Private Purpose Activity 26,816 39,781 58,797 300,000 500,000 - - - Total Disbursements 26,816 39,781 58,797 300,000 500,000 - - -

Transfers to Other School Funds ------

Total Disbursements and Transfers 26,816 39,781 58,797 300,000 500,000 - - -

Ending Balance, June 30 316,558 378,078 444,949 - - - - - Nonspendable ------Committed ------Restricted 316,558 378,078 444,949 - - - - - Assigned ------Unassigned ------

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Proprietary Funds Combined Financial Statement Proprietary funds account for operations providing a product or service for a fee similar to a profit-making business in the private sector. Internal service funds such as Consolidated Services Fund and School Health Insurance Reserve Fund are proprietary funds to account for goods or services provided to the school division or other government agencies.

SUMMARY OF PROPRIETARY FUNDS

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 AC T U AL AC T U AL AC T U AL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 2,243,175 2,851,558 2,855,734 7,192,674 9,371,950 10,916,069 10,396,200 9,118,618

Receipts Interest 26,949 74,451 153,500 139,208 100,000 100,000 100,000 100,000 Sales and Other Receipts 20,465,457 22,225,685 24,245,726 24,983,424 25,217,000 24,221,150 23,280,093 22,391,088 Total Receipts 20,492,406 22,300,136 24,399,226 25,122,632 25,317,000 24,321,150 23,380,093 22,491,088

Total Funds Available 22,735,580 25,151,693 27,254,960 32,315,306 34,688,950 35,237,219 33,776,292 31,609,706

Disbursements Personnel 899,924 972,264 1,020,043 1,139,306 1,139,108 1,167,586 1,196,776 1,226,695 Operating 1,863,727 1,975,368 2,088,843 2,249,542 2,887,693 2,940,049 3,030,456 3,120,362 Capital Outlay 6,562 6,800 ------Health Insurance Claims 17,113,810 19,341,528 16,827,076 19,554,508 19,746,080 20,733,384 20,430,442 20,565,989 Total Disbursements 19,884,023 22,295,960 19,935,962 22,943,356 23,772,881 24,841,019 24,657,674 24,913,046

Total Disbursements 19,884,023 22,295,960 19,935,962 22,943,356 23,772,881 24,841,019 24,657,674 24,913,046

Ending Balance, June 30 2,851,558 2,855,734 7,318,997 9,371,950 10,916,069 10,396,200 9,118,618 6,696,660 Nonspendable 308,500 367,788 280,000 280,000 280,000 280,000 280,000 280,000 Committed 2,543,058 2,487,945 7,038,997 9,091,950 10,636,069 10,116,200 8,838,618 6,416,660 Restricted ------Assigned ------Unassigned ------

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Consolidated Services Fund Consolidated Services Fund is a proprietary, internal service fund that accounts for building and vehicle maintenance services and goods provided to the school division and government agencies.

SUMMARY OF CONSOLIDATED SERVICES FUND

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 AC T U AL AC T U AL AC T U AL APPROVED APPROVED FORECAST FORECAST FORECAST Beginning Balance, July 1 364,312 333,598 379,182 300,000 300,000 300,000 300,000 300,000

Receipts Interest ------Sales and Other Receipts 2,531,730 2,909,987 3,064,599 3,300,000 3,300,000 3,400,000 3,500,000 3,600,000 Total Receipts 2,531,730 2,909,987 3,064,599 3,300,000 3,300,000 3,400,000 3,500,000 3,600,000

Total Funds Available 2,896,042 3,243,585 3,443,781 3,600,000 3,600,000 3,700,000 3,800,000 3,900,000

Disbursements Personnel 899,924 972,264 1,020,043 1,139,306 1,139,108 1,167,586 1,196,776 1,226,695 Operating 1,655,958 1,885,339 1,997,414 2,160,694 2,160,892 2,232,414 2,303,224 2,373,305 Capital Outlay 6,562 6,800 ------Total Disbursements 2,562,444 2,864,403 3,017,458 3,300,000 3,300,000 3,400,000 3,500,000 3,600,000

Total Disbursements 2,562,444 2,864,403 3,017,458 3,300,000 3,300,000 3,400,000 3,500,000 3,600,000

Ending Balance, June 30 333,598 379,182 426,323 300,000 300,000 300,000 300,000 300,000 Nonspendable 308,500 367,788 280,000 280,000 280,000 280,000 280,000 280,000 Committed 25,098 11,394 146,323 20,000 20,000 20,000 20,000 20,000 Restricted ------Assigned ------Unassigned ------

Fund Description and Forecast Assumptions Activities for the operation of vehicle maintenance services at the school transportation facility are accounted for in this fund. Customers are Frederick County Public Schools and some government agencies buying vehicle maintenance, parts, and fuel. Receipts from billings to customers cover personnel, operating, and capital outlay expenses. Fuel is the greatest operating expense for this fund. Personnel expense is a third of the fund disbursements and includes 14.0 full-time equivalent positions— mechanics, administrative assistant support, and supervision. The nonspendable portion of fund balance is the value of fuel inventory at June 30.

Forecasts assume personnel and operating costs will increase 3.0 percent each year based on the recent consumer price index. Staffing positions are not forecasted to increase, and billings to customers will continue to fully fund projected expenses.

Also included in this fund is building maintenance service activity the school division provides to the county government administration building, Bowman Regional Library, and the old Frederick County courthouse through a memorandum of understanding between the Frederick County Board of Supervisors and Frederick County School Board. This activity is not significant and is a small portion of the overall fund.

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School Health Insurance Reserve Fund The School Health Insurance Reserve Fund is a proprietary, internal service fund through which all employee health insurance claim costs and premiums are collected and recorded. Under a self-insured program, the insured group pays for all health costs. Premiums are based on anticipated claims for the upcoming plan year. If claims exceed premium receipts, fund balance is used to offset the loss. If claims are less than premium receipts, fund balance is used to sustain or lower premiums in future years.

The school division contracts with a provider network and administrator to handle the claims and billing process. Two health insurance plans are available to employees – a preferred provider organization (PPO) or a high deductible health savings account.

SUMMARY OF SCHOOL HEALTH INSURANCE RESERVE FUND

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ACTUAL ACTUAL ACTUAL ESTIMATED ESTIMATED FORECAST FORECAST FORECAST Beginning Balance, July 1 1,878,863 2,517,960 2,476,552 6,892,674 9,071,950 10,616,069 10,096,200 8,818,618

Receipts Interest 26,949 74,451 153,500 139,208 100,000 100,000 100,000 100,000 Sales and Other Receipts 17,933,727 19,315,698 21,181,127 21,683,424 21,917,000 20,821,150 19,780,093 18,791,088 Total Receipts 17,960,676 19,390,149 21,334,627 21,822,632 22,017,000 20,921,150 19,880,093 18,891,088

Total Funds Available 19,839,539 21,908,109 23,811,179 28,715,306 31,088,950 31,537,219 29,976,292 27,709,706

Disbursements Operating 207,769 90,029 91,429 88,848 726,801 707,635 727,232 747,057 Health Insurance Claims 17,113,810 19,341,528 16,827,076 19,554,508 19,746,080 20,733,384 20,430,442 20,565,989 Total Disbursements 17,321,579 19,431,557 16,918,505 19,643,356 20,472,881 21,441,019 21,157,674 21,313,046

Total Disbursements 17,321,579 19,431,557 16,918,505 19,643,356 20,472,881 21,441,019 21,157,674 21,313,046

Ending Balance, June 30 2,517,960 2,476,552 6,892,674 9,071,950 10,616,069 10,096,200 8,818,618 6,396,660 Nonspendable ------Committed 2,517,960 2,476,552 6,892,674 9,071,950 10,616,069 10,096,200 8,818,618 6,396,660 Restricted ------Assigned ------Unassigned ------

Significant Changes and Forecast Assumptions Appropriation for this fund is equal to the fund balance plus receipts during the fiscal year; therefore, FY 2020 and FY 2021 are estimated. Estimations are based on the number of health plan participants and established premiums to fund projected claims. Sales and other receipts are employee and employer shares of premiums for participating employees.

Estimated claims are based on historical utilization trends projected forward. For FY 2021, claims are expected to increase by one percent. Operating costs will increase due to FCPS' partnership with CareTeam to provide an on-site health clinic for employees and their dependents participating in the group health plan. Premiums paid by the employer and employee will not increase for FY 2021.

Forecasts include a decrease to health premiums due to a healthy fund balance and overall savings in projected health claims. Projected and forecasted fund balance is above best practice limits, a level that supports three months of average health claims expense.

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Local Taxes Property Tax Rates and Collections School boards in Virginia do not have taxing authority. Frederick County Public Schools is financially dependent on funds from the local, state, and federal governments. Frederick County government led by the Board of Supervisors collects taxes on real estate, personal property, and other sources and then transfers a portion to Frederick County Public Schools. The Board of Supervisors, the School Board, and administrative personnel collaborate to determine funding levels for the community’s public schools.

County general revenues primarily include real estate taxes, personal property taxes, some other local taxes, and investment income tax minus the recordation tax. Real estate taxes are collected on taxable residential and commercial property. Personal property taxes are collected on vehicles and business equipment. Other taxable property includes automobiles, mobile homes, commercial machinery and tools, and aircraft. Other local revenue sources include a portion of the sales tax, license and utility taxes, and vehicle registrations.

FREDERICK COUNTY PRPERTY VALUES, TAX RATES, AND COLLECTIONS (REVENUES) Personal Real Property Property Tax Total Other Taxable Real Total Taxable Tax Rate, Rate, Dollars Total Property Local Tax Tax Fiscal Property Values Property Values Dollars per per $100 Tax Revenue, Revenue, Year Year ($ in millions) ($ in millions) $100 Value Value ($ millions) ($ millions) 2006 2007$ 7,354.88 $ 8,759.50 0.525 4.20 $ 78.48 $ 26.69 2007 2008$ 7,628.05 $ 9,023.28 0.525 4.20 $ 81.72 $ 26.55 2008 2009$ 7,811.32 $ 9,225.40 0.510 4.86 $ 80.79 $ 25.11 2009 2010$ 8,050.51 $ 9,480.58 0.510 4.86 $ 82.29 $ 24.84 2010 2011$ 7,835.12 $ 9,359.87 0.545 4.86 $ 84.59 $ 25.30 2011 2012$ 7,636.81 $ 9,238.97 0.585 4.86 $ 87.00 $ 26.97 2012 2013$ 7,696.00 $ 9,348.90 0.585 4.86 $ 91.74 $ 28.45 2013 2014$ 7,816.09 $ 9,491.31 0.585 4.86 $ 94.26 $ 29.90 2014 2015$ 8,149.29 $ 9,935.39 0.560 4.86 $ 98.25 $ 30.87 2015 2016$ 8,531.31 $ 10,469.86 0.600 4.86 $ 103.53 $ 32.32 2016 2017$ 9,113.60 $ 11,010.30 0.600 4.86 $ 112.47 $ 34.43 2017 2018$ 9,712.10 $ 11,864.90 0.610 4.86 $ 119.42 $ 35.91 2018 2019$ 10,245.92 $ 12,417.07 0.610 4.86 $ 125.83 $ 36.63 Source: Frederick County 2019 Comprehensive Annual Financial Report

For FY 2021, the Frederick County Board of Supervisors approved a budget based on a real estate tax rate at $0.61 per $100 of assessed value and a personal property tax rate at $4.86 per $100 of assessed value.

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Impact of Local Real Estate Tax on Taxpayers Property tax revenue is a function of the tax rate, determined by the county government, size of county population, and the property’s value, determined by market forces. Frederick County government collects taxes on real estate, personal property, and other sources and transfers a percentage of those revenues to FCPS for operations and debt service. Traditionally, 57 percent of new county revenues is transferred to schools. The following table lists ten years of real estate tax rates and the impact of the rate on the average residential home in Frederick County. The table also includes projections for FY 2020 and FY 2021 assuming that property values for those two years increase by 5 percent each year over the previous year.

Real Property % Increase Tax Rate, Mean Assessed % Increase or or Dollars per Value of Decrease Decrease Tax Year Fiscal Year $100 Value Residence Mean Tax Bill Assessed Value Tax Bill 2008 2009 $ 0.510 $ 193,417 $ 986 -21% -23.3% 2009 2010 $ 0.510 $ 171,500 $ 875 -11% -11.3% 2010 2011 $ 0.545 $ 178,000 $ 970 4% 10.9% 2011 2012 $ 0.585 $ 183,000 $ 1,071 3% 10.4% 2012 2013 $ 0.585 $ 197,000 $ 1,152 8% 7.7% 2013 2014 $ 0.585 $ 207,600 $ 1,214 5% 5.4% 2014 2015 $ 0.560 $ 220,500 $ 1,235 6% 1.7% 2015 2016 $ 0.600 $ 225,961 $ 1,356 2% 9.8% 2016 2017 $ 0.600 $ 247,417 $ 1,485 9% 9.5% 2017 2018 $ 0.610 $ 248,084 $ 1,513 0% 1.9% 2018 2019 $ 0.610 $ 264,112 $ 1,611 7% 6.5% 2019 2020* $ 0.610 $ 277,318 $ 1,692 5% 5.0% 2020 2021* $ 0.610 $ 291,183 $ 1,776 5% 5.0% * Assessed Value of Residence for fiscal years 2020 and 2021 are projections Source: Frederick County 2019 Comprehensive Annual Financial Report Mean home values provided by the Frederick County Commissioner of Revenue

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Enrollment Trends Student Enrollment Growth The size of a school division’s student enrollment is the greatest determinant of funding and resource needs for the division. Enrollment projections are completed annually for each grade level. A number of factors such as live birth data, grade level migration and attrition, historical enrollment data, kindergarten statistics, and population growth experienced by the county are considered when projecting student enrollment. Building capacities are further utilized to plan for new school buildings when projected enrollments exceed existing capacities. Prekindergarten (PK) enrollment through the Virginia Preschool Initiative is based on the availability of funds.

The FY 2021 projected student enrollment is 14,158 for Frederick County Public Schools. This is an increase of 243 students or 1.7 percent compared to the September 13, 2019, actual student enrollment of 13,915. Since FY 2010, FCPS enrollment grew by 880 students. During the same time period, FCPS opened one new school building and one transportation facility.

FY 2021 MEMBERSHIP CHANGE Change from FY 2020 FY 2021 Actual *Actual Projected Number Percent PS, P3, and P4 83 85 2 2.9% PK 54 54 - 0.0% Kindergarten 944 999 55 5.9% Grades 1-5 5,142 5,162 20 0.4% Grades 6-8 3,354 3,430 76 2.3% Grades 9-12 4,338 4,427 89 2.1% Total 13,915 14,158 243 1.7% *Actual membership is based on September 15th enrollment. Numbers may not add correctly due to rounding.

Enrollment Forecasting Methodology FCPS enrollment projections include both quantitative and qualitative elements. The projections utilize cohort analysis, where each class, in statistical terms called a cohort, is tracked from grade to grade as it moves through the school system. This method allows us to see how individual classes grow and shrink through the years. By combining the growth results of all classes, we can see patterns and derive growth/ shrinkage averages, in statistical terms called survival ratios (which is misleading, as deaths have little to do with it). We generate survival ratios for kindergarten going to first grade, first grade going to second grade, and so on. Survival ratios from a range of years are combined to produce multi-year ratios. This has the advantage of averaging survival ratios for a number of years and avoiding the peaks and valleys typically contained in single-year ratios. Average survival ratios are applied to a roll up of the present year’s school population to generate projections for every grade but kindergarten.

Live birth data from the Virginia Department of Health is used to generate kindergarten projections, since cohort survival ratios are not available for four-year-olds. We can pair live birth data with entering kindergarten class sizes, with a five-year lag, to develop a substitute for survival rates for kindergarten. These rates are useful for the first three years of projections. Beyond that, we don’t have live birth data. So, instead, we generate rates using comparisons of kindergarten class sizes from year to year and use these rates for projection years 4 through 10.

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FCPS projections are based on decades of historical student enrollment data, historical live birth data, and historical permit data. Survival rates are averages and can be generated using any number of years for which data is available. Choosing what time frame to use is the qualitative portion of the analysis. The time frame chosen will be the best fit to the macro- and micro-economic picture our research forms. Information used to form this picture includes economic outlooks from large banks, the Federal Reserve, the Wall Street Journal, the Mortgage Bankers Association, the National Bureau of Economic Research, and organizations like Freddie Mac. It also includes national birth rate expectations, local residential real estate data from County Planning, local unemployment rates, and other local economic news. Over the past 19 years, FCPS' average projection accuracy for total district enrollment is greater than 99%.

For projections by school and grade, FCPS builds on the district-wide projections. Current year enrollment is rolled up for each grade in each school. Cohort survival ratios generated for the district- wide projections are then applied to these roll-ups. In order to project 6th and 9th grade enrollment, each rising 6th and 9th grader is georeferenced to attendance zone maps to determine in which school district each student resides. Detailed Health Department data is used to project kindergarten enrollment.

Membership projections are used for budgeting purposes, to develop the Capital Improvements Plan, and to ensure proper pupil/teacher ratios in the upcoming year.

Membership History and Projections In the past five years, student enrollment grew by 749 students or 5.7 percent. Student membership grew by 270 students or 2.0 percent from FY 2019 to FY 2020.

To project student membership for FY 2021 and beyond, student cohorts (all students of a particular grade) are assumed to grow at the average of the growth rates experienced by the cohort in the recent past. To project forward the number of incoming kindergartners, live birth data is accompanied with average growth rates between kindergarten cohorts in the recent past. Over the next five years, FCPS membership is projected to increase by 1,037 students or 7.5 percent.

FCPS MEMBERSHIP HISTORY AND PROJECTIONS PS, P3, Fiscal Year PK Grades K- 5 Grades 6-8 Grades 9-12 Total and P4 2010 5,896 2 ,950 4,189 13,035 2011 5,956 2,976 4,111 13,043 2012 5,926 3,070 4,033 13,029 2013 5,980 3,110 3,976 13,066 2014 5,968 3,108 3,969 13,045 2015 5,939 3,063 4,090 13,092 2016 74 5,884 3,029 4,179 13,166 2017 78 5,934 3,109 4,203 13,324 2018 69 54 5,951 3,199 4,294 13,567 2019 76 54 5,972 3,249 4,294 13,645 2020 83 54 6,086 3,354 4,338 13,915 2021P 85 54 6,161 3,430 4,427 14,158 2022P 87 54 6,314 3,371 4,562 14,388 2023P 90 54 6,418 3,356 4,659 14,577 2024P 92 54 6,474 3,378 4,782 14,780 2025P 94 54 6,476 3,519 4,809 14,952 P = projected enrollment. Numbers may not add correctly due to rounding

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Membership History and Projections 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021P 2022P 2023P 2024P 2025P

P = projection Elementary (Grades K-5) Middle (Grades 6-8) High (Grades 9-12)

Actual membership by school from the prior four years is listed in the following table.

MEMBERSHIP—FOUR YEAR ACTUAL AND PROJECTION BY SCHOOL FY 2021 Schools FY 2017 FY 2018 FY 2019 FY 2020 Projected Apple Pie Ridge Elementary 467 456 452 494 492 Armel Elementary 603 643 637 646 631 Bass-Hoover Elementary 593 629 621 617 622 Evendale Elementary 557 530 532 524 512 Gainesboro Elementary 490 472 463 490 462 Greenwood Mill Elementary 642 624 629 636 635 Indian Hollow Elementary 404 434 425 391 404 Jordan Springs Elementary - --- 412 Middletown Elementary 481 484 472 496 498 Orchard View Elementary 451 461 484 501 520 Redbud Run Elementary 657 698 718 730 623 Stonewall Elementary 583 643 669 698 405 NREP (including PS, P3, P4)* 84 * * * 85 Sub-total Elementary 6,012 6,074 6,102 6,223 6,300 Admiral Richard Byrd Middle 929 942 971 1,036 1,047 Frederick County Middle 650 687 714 831 831 James Wood Middle 904 941 954 878 921 Robert E. Aylor Middle 621 629 610 609 626 NREP 5 * * * 7 Sub-total Middle Schools 3,109 3,199 3,249 3,354 3,432 James Wood High 1,286 1,318 1,332 1,372 1,376 Millbrook High 1,398 1,462 1,466 1,485 1,512 Sherando High 1,503 1,514 1,496 1,481 1,532 NREP 16 * * * 7 Sub-total High Schools 4,203 4,294 4,294 4,338 4,427 Total Sept. 15 Membership 13,324 13,567 13,645 13,915 14,158 * Beginning in FY 2018, NREP students are counted in their home school and not separately, except in projected year. Numbers may not add correctly due to rounding.

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Changing Student Demographics In the past five years, the demographics of FCPS’ student population changed significantly. The number of students requiring more complex services in certain population groups (English language learners, special education, and economically disadvantaged) is growing at a faster rate than total student membership. The graph below shows the five-year percent increase among these student groups.

Change in FCPS Student Membership in the Past Five Years

13,092 All Students 6.3% change 13,915

10,736 Regular Education 4.2% change 11,184

Free/Reduced Meal 4,438 12% change Eligibility 4,969

809 English Learners 3.7% change 839

1,547 Special Education 22.3% change 2015 2020 1,892

Economically Disadvantaged Students The number of economically disadvantaged students (those eligible for free or reduced-priced meals) has grown 12 percent in the past five years. The number of economically disadvantaged students was 35.7 percent of 13,915 total students during the 2019-2020 school year.

English Language Learners The number of FCPS students receiving language instruction for English learners and immigrant students services is 839 or 6.0 percent of 13,915 total students. This is a 3.7 percent increase over the past five years. Students with Disabilities The special education budget supports appropriate services for children aged two through 21 with special needs. The average expenditure per special education student is more than 50 percent greater than that for a regular education student. About 13.6 percent of the student population is receiving special education services.

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STUDENTS WITH DISABILITIES SUBGROUP POPULATIONS SCHOOL YEAR 2015 THROUGH SCHOOL YEAR 2020 (PERCENT CHANGE) % Annual % Annual % Annual % Annual % Annual % Annual Dec. Dec. Dec. Dec. Dec. Dec. Change Change Change Change Change Change Disability 2014 2015 2016 2017 2018 2019 SY14 to SY15 to SY16 to SY17 to SY18 to SY19 to (SY15) (SY16) (SY17) (SY18) (SY19) (SY20) SY15 SY16 SY17 SY18 SY19 SY20 ID Intellectual Disability 71 1.4% 72 2.9% 77 6.9% 80 3.9% 81 1.3% 69 -14.8%

HI Hearing Impairments 23 -11.5% 23 -11.5% 22 -4.3% 17 -22.7% 17 0.0% 15 -11.8% Speech or Language SLI 253 11.9% 262 15.9% 270 3.1% 311 15.2% 290 -6.8% 279 -3.8% Impairments VI Visual Impairments 12 20.0% 11 10.0% 12 9.1% 13 8.3% 10 -23.1% 10 0.0%

ED Emotional Disabilities 65 -13.3% 70 -6.7% 80 14.3% 83 3.8% 84 1.2% 83 -1.2% Orthopedic OI 6 0.0% 2 -66.7% 10 400.0% 11 10.0% 10 -9.1% 10 0.0% Impairments Other Health OHI 342 5.2% 363 11.7% 371 2.2% 364 -1.9% 393 8.0% 457 16.3% Impairments Specific Learning SLD 505 7.9% 533 13.9% 566 6.2% 575 1.6% 587 2.1% 615 4.8% Disabilities MD Multiple Disabilities 36 5.9% 37 8.8% 41 10.8% 37 -9.8% 37 0.0% 40 8.1%

AUT Autism 198 13.8% 219 25.9% 232 5.9% 240 3.4% 246 2.5% 266 8.1%

TBI Traumatic Brain Injured 3 0.0% 3 0.0% 3 0.0% 5 66.7% 5 0.0% 4 -20.0%

DD Developmental Delay 33 -23.3% 35 -18.6% 36 2.9% 37 2.8% 38 2.7% 44 15.8%

Total Identified 1,547 6.0% 1,630 11.6% 1,720 5.5% 1,773 3.1% 1,798 1.4% 1,892 5.2%

Student Diversity Frederick County students and teachers encompass a variety of backgrounds, beliefs, experiences, and preferences. Embracing this diversity is part of the educational mission in Frederick County Schools. Fostering communication, exchange, and empathy is part of a student’s success.

FCPS Student Diversity 4% FY 2016 and FY 2020 5% 100% 1% 2% 90% 80% 70% Other 60% 76% 71% Asian 50% White 40% 30% Hispanic 20% Black 20% 10% 15% 0% 4% 4% 2015 2020

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FY 2021 School Calendar 2020-21 2020 July 6 Administration Offices and School Offices Closed (Independence Day Observance) July 3, 10, 17, 24, 31 Administration Offices and School Offices Closed (Summer Hours) August 7 Orientation of New Professional Personnel August 17-28 Teacher Workdays September 7 NO SCHOOL – Administration Offices and School Offices Closed (Labor Day ) September 8 First Day of School for Students September 16, 23, 30 NO SCHOOL – Teacher Plan/Outreach October 7, 14, 21, 28 NO SCHOOL – Teacher Plan/Outreach November 3 NO SCHOOL – Teacher Plan/Outreach (Election Day) November 10 End of First Nine Weeks November 11 NO SCHOOL – Flex Teacher Plan/Workday November 18 NO SCHOOL – Teacher Plan/Outreach November 20 Report Cards Issued November 25 NO SCHOOL – Flex Teacher Plan/Workday November 26 and 27 NO SCHOOL – Administration Offices and School Offices Closed (Thanksgiving) December 2, 9, 16 NO SCHOOL – Teacher Plan/Outreach December 23 NO SCHOOL – Flex Teacher Plan/Workday December 24–January 3 NO SCHOOL (Winter Break ) December 24, 25, 28, 31 Administration Offices and School Offices Closed 2021 January 1 NO SCHOOL – Administration Offices and School Offices Closed (New Year's Day) January 4 NO SCHOOL – Teacher Plan/Workday January 5 School Reopens January 15 NO SCHOOL – Professional Learning January 18 NO SCHOOL (Martin Luther King, Jr. Day) January 29 End of Second Nine Weeks and End of First Semester February 1 NO SCHOOL – Flex Teacher Plan/Workday February 11 Report Cards Issued February 12 NO SCHOOL – Professional Learning February 15 NO SCHOOL – Administration Offices and School Offices Closed (Presidents Day) April 2, 5, 6 NO SCHOOL – Administration Offices and School Offices Closed (Spring Break) April 9 End of Third Nine Weeks April 12 NO SCHOOL – Flex Teacher Plan/Workday April 22 Report Cards Issued April 30 NO SCHOOL – Administration Offices and School Offices Closed (Apple Blossom ) May 31 NO SCHOOL – Administration Offices and School Offices Closed (Memorial Day ) June 16 Graduation – Millbrook High School, 6:00 p.m. June 17 Graduation – Sherando High School, 7:00 p.m. June 18 Graduation – James Wood High School, 7:00 p.m. June 18 Last Day of School – Early Dismissal (HS 12 noon, MS 12:15, ES 1:00) June 18 End of Fourth Nine Weeks and Second Semester June 21 Teacher Workday June 22 Teacher Flexible Workday June 24 2019 Admin. Topics Mtg. June 25 Administration Offices and School Offices Closed (Summer Hours) June 30 Report Cards Issued Approved by School Board December 17, 2019. Revised 23, 2020, for August 31 Opening. Revised and Approved by School Board August 11, 2020, for Post Labor Day Opening The School Board reserves the right to change the calendar in relation to holiday observance and make-up days (see school board policy). The 2020-2021 school calendar has 180 student days, a fixed last day of school, and 0 built-in inclement weather days. Days missed due to inclement weather will be distance learning (virtual) school days.

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Authorized Personnel Positions Frederick County Public Schools is projected to employ 2,341.3 full-time equivalent (FTE) employees in FY 2021. Eighty-two percent are considered school-based positions serving needs for the instructional programs of Frederick County Public Schools.

FY 2021 Authorized Positions

School-Based School-Based Instructional Support, 382.2 Assistants, FTEs 292.1 FTEs Pupil Transportation 262.0 FTEs

School-Based Teachers, Non-School- 1,248.0 FTEs Based, 157.0 FTEs

School-Based Teachers Of the 2,341.3 FTEs in the FY 2021 budget, 1,248.0 FTEs or 53.3 percent are teachers directly serving students. These teachers include regular and special education classroom teachers, resource teachers, instructional coaches, guidance counselors, home-school coordinators, and librarians. Fifty-nine percent of FCPS teachers have a masters or higher degree. Almost two thirds of teachers have 0 to 15 years experience.

FCPS Teacher Experience & Education

Over 30

26 - 30

21 - 25

16 - 20

11 - 15 Years Experience 6 - 10

0 - 5

0 50 100 150 200 250 300 Number of Teachers

Bachelor's Master's Master's Plus

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School-Based Instructional Assistants Of the 2,341.3 FTEs in the FY 2021 budget, 292.1 FTEs or 12.5 percent are instructional assistants. Instructional assistants include teacher aides, accompa­nists, and interpreters directly assisting teachers and serving students in the classroom.

School-Based Support Of the 2,341.3 FTEs in the FY 2021 budget, 382.2 FTEs or 16.3 percent are school-based support positions. School-based support positions include principals, assistant principals, clerical support, psychologists, social workers, coordinators of student activities, school nurses, school custodians, and school nutrition services workers.

Pupil Transportation Of the 2,341.3 FTEs in the FY 2021 budget, 262.0 FTEs or 11.2 percent are positions related to the transporting of students to and from school. Pupil transportation positions include transportation administration, bus drivers, bus aides, and mechanics.

Non-School-Based Of the 2,341.3 FTEs in the FY 2021 budget, 157.0 FTEs or 6.7 percent are positions that are not physically school based, but serve the entire school division. Non-school-based positions include the superintendent, assistant superintendents, instructional services, student support services, special services, administrative services, operations and maintenance services, financial services, human resource services, information technology services, clerical support, and instructional and administrative specialists personnel.

ADJUSTED APPROVED CHANGE FY 2020 FY 2021 FY20 to FY21 AMOUNT PERCENT AMOUNT PERCENT AMOUNT PERCENT School-Based Teachers 1,223.2 53.3% 1,248.0 53.3% 24.8 2.0% School-Based Instructional 281.4 12.3% 292.1 12.5% 10.7 3.7% Assistants School-Based Support 371.3 16.2% 382.2 16.3% 10.9 2.9% Pupil Transportation 261.0 11.4% 262.0 11.2% 1.0 0.4% Non-School-Based 156.0 6.8% 157.0 6.7% 1.0 0.6% Total Positions 2,292.9 100.0% 2,341.3 100.0% 48.4 2.1%

The number of school-based teachers and instructional assistants is increasing to support student enrollment growth and open Jordan Springs Elementary School. The number of pupil transportation positions is increasing by one bus driver. Non-school-based positions is increased by a maintenance technician.

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Position Changes

FREDERICK COUNTY PUBLIC SCHOOLS RESOURCE ALLOCATIONS – ALL FUNDS (represented as full-time equivalent positions) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Change Actual Actual Actual Adjusted Approved Teachers 1,162.9 1,171.8 1,195.7 1,223.2 1,248.0 24.8 Instructional Assistants 242.0 256.4 271.4 281.4 292.1 10.7 Principals 20.0 20.0 20.0 21.0 21.0 - Assistant Principals 31.0 31.0 32.0 32.0 33.0 1.0 Dean 1.0 1.0 1.0 1.0 1.0 - Student Activities Coordinators 3.0 3.0 3.0 3.0 3.0 - Athletic Trainers 3.0 3.0 3.0 3.0 3.0 - School Nurse 20.0 20.0 20.0 20.0 21.0 1.0 Secretaries/Account Clerks 109.3 109.3 108.2 108.7 110.7 2.0 Psychologists & Diagnosticians 12.0 12.0 13.0 13.0 14.0 1.0 Bus Drivers & Aides 208.0 213.0 220.0 235.0 236.0 1.0 Custodians & School Security Officers 103.0 106.0 105.8 106.8 109.8 3.0 School Nutrition Service Workers 91.2 89.1 89.7 89.8 92.7 2.9 Superintendent 1.0 1.0 1.0 1.0 1.0 - Assistant Superintendents 2.0 2.0 2.0 2.0 2.0 - Directors, Assistant Directors, Supervisors, & Coordinators 50.0 54.0 55.0 55.0 55.0 - Business Specialists, Analysts, & Accountants 18.0 24.0 26.0 26.0 26.0 - Maintenance Technicians, Clerk of the Works & Couriers 15.0 16.0 23.0 24.0 25.0 1.0 Mechanics & Parts Technician & Service Writer 11.0 12.0 12.0 13.0 13.0 - Technology Technicians, Specialists, & Engineers 32.0 33.0 34.0 34.0 34.0 - Total Full-Time Equivalent Positions 2,135.3 2,177.6 2,235.8 2,292.9 2,341.3 48.4

Another classification of personnel positions is by fund and state category. Compared to the FY 2020 adjusted budget, total positions are increased by 48.4 FTEs for FY 2021.

FREDERICK COUNTY PUBLIC SCHOOLS STAFFING (represented as full-time equivalent positions) Change from FY20 Adjusted FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 to FY21 Position Adjusted Adjusted Adjusted Adjusted Approved Approved Instructional Positions 1,500.1 1,531.6 1,567.8 1,603.7 1,643.9 40.2 Administration/Attendance & Health Positions 69.6 71.1 72.1 71.6 72.6 1.0 Pupil Transportation Positions 215.0 219.0 229.0 246.0 246.0 - Operation & Maintenance Positions 123.0 126.8 128.8 131.0 135.0 4.0 Facilities Positions 0.5 1.5 1.5 2.0 2.0 - Technology 46.2 48.2 50.2 50.7 51.2 0.4 Sub-total School Operating Fund 1,954.4 1,998.1 2,049.4 2,105.0 2,150.6 45.6 School Food Service 93.7 92.6 92.2 91.6 94.4 2.8 Northwestern Regional Education Program 72.4 72.4 75.7 77.8 77.8 - School Textbook Fund 0.5 0.5 0.5 0.5 0.5 - School Construction Fund 1.0 - 3.0 3.0 3.0 - Special Grants Fund - - - - Private Purpose Fund - - 1.0 1.0 1.0 - Consolidated Services Fund 13.4 14.0 14.0 14.0 14.0 - Sub-total Regular Full-Time and Part-Time 2,135.3 2,177.6 2,235.8 2,292.9 2,341.3 48.4

Grand Total 2,135.3 2,177.6 2,235.8 2,292.9 2,341.3 48.4 Numbers may not add correctly due to rounding

107 Informational Section

Cost Per Pupil The cost per pupil calculation is based on the Virginia Department of Education’s definition of operations. All Virginia school divisions report expenditures in a standardized format. Division comparative information is provided in the Virginia Superintendent’s Annual School Report. PER PUPIL EXPENDITURES BY SOURCE OF FUNDS

Operations in this calculation include regular day school, school nutrition services, summer school, adult The chart below indicates the sources and average amount per pupil spent on educating students education, and other educational programs. Operations in this calculation exclude the cost of facilities, in Frederick County Public Schools. (Reference: Virginia Code § 22.1-92) debt service, and capital outlay expenditures for additions. Actual Actual Actual Projected Projected Frederick County FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 State and Regional Cost Per Pupil Comparison Based on actual FY 2019 information (most current information available) from the Virginia Department Local Funds $ 5,858 $ 6,253 $ 6,453 $ 6,830 $ 6,830 of Education (VDOE), Frederick County Public Schools’ cost per pupil is 0.3 percent lower than the state State Funds $ 4,310 $ 4,517 $ 4,719 $ 4,906 $ 4,906 average and 0.9 percent lower than the regional average. The regional average includes cost per pupil from the school districts of Winchester City and Clarke, Warren, Loudoun, Shenandoah, and Fauquier Retail Sales & Use Tax $ 1,095 $ 1,030 $ 1,117 $ 1,159 $ 1,159 Counties. Federal Funds $ 560 $ 611 $ 601 $ 575 $ 575

Comparative Cost Per Pupil Total Cost Per Pupil $ 11,823 $ 12,411 $ 12,890 $ 13,470 $ 13,470 18,000 15,277 Virginia State Average $ 12,171 $ 12,548 $ 12,931 Not Available Not Available 16,000 14,091 13,782 Per pupil expenditures include regular day school, food services, summer school, adult education and any 14,000 12,250 12,889 12,931 13,012 11,176 11,619 12,000 other educational programs, but do not include facilities, debt service, and capital outlay additions. 10,000 8,000 6,000 4,000 2,000 - Winchester County Warren Loudoun Shenandoah Fauquier Frederick Average Regional Average County Clarke County County County State County City

Source: FY 2019 Annual School Report, Virginia Department of Education

COST PER PUPIL COMPARISON FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Winchester City 12,587 12,724 13,057 13,638 14, 091 Clarke County 11,096 11,253 11,631 12,034 12, 250 Warren County 9,900 9,741 10,182 10,625 11, 176 Loudoun County 12,915 13,549 14,317 14,551 15, 277 Shenandoah County 10,137 10,377 10,737 11,108 11, 619 Fauquier County 12,173 12,479 12,567 12,891 13, 782 Frederick County 11,009 11,401 11,823 12,411 12,889 State Average 11,523 11,745 12,171 12,548 12,931 Regional Average 11,402 11,646 12,061 12,465 13,012

108 Informational Section

Cost Per Pupil The FY 2020 projected cost per pupil for Frederick County is $13,329. For FY 2021, FCPS’ projected cost per pupil is $13,597—a 2.0 percent increase compared to the estimated FY 2020 per pupil amount. The cost per pupil calculation is based on the Virginia Department of Education’s definition of operations. All Virginia school divisions report expenditures in a standardized format. Division comparative information is provided in the Virginia Superintendent’s Annual School Report. PER PUPIL EXPENDITURES BY SOURCE OF FUNDS Operations in this calculation include regular day school, school nutrition services, summer school, adult The chart below indicates the sources and average amount per pupil spent on educating students education, and other educational programs. Operations in this calculation exclude the cost of facilities, in Frederick County Public Schools. (Reference: Virginia Code § 22.1-92) debt service, and capital outlay expenditures for additions. Actual Actual Actual Projected Projected State and Regional Cost Per Pupil Comparison Frederick County FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 Based on actual FY 2019 information (most current information available) from the Virginia Department Local Funds $ 5,858 $ 6,253 $ 6,452 $ 6,811 $ 6,787 of Education (VDOE), Frederick County Public Schools’ cost per pupil is 0.3 percent lower than the state State Funds $ 4,310 $ 4,517 $ 4,719 $ 4,794 $ 5,019 average and 0.9 percent lower than the regional average. The regional average includes cost per pupil from the school districts of Winchester City and Clarke, Warren, Loudoun, Shenandoah, and Fauquier Retail Sales & Use Tax $ 1,095 $ 1,030 $ 1,117 $ 1,153 $ 1,192 Counties. Federal Funds $ 560 $ 611 $ 601 $ 571 $ 599

Comparative Cost Per Pupil Total Cost Per Pupil $ 11,823 $ 12,411 $ 12,889 $ 13,329 $ 13,597 18,000 15,277 Virginia State Average $ 12,171 $ 12,548 $ 12,931 Not Available Not Available 16,000 14,091 13,782 14,000 12,250 12,889 12,931 13,012 Per pupil expenditures include regular day school, food services, summer school, adult education and any 11,176 11,619 12,000 other educational programs, but do not include facilities, debt service, and capital outlay additions. 10,000 8,000 6,000 Debt Management 4,000 Debt provides the current resources to build new schools and renovate or add to current schools. These 2,000 financial resources must be repaid with interest in the future. This debt commits future county funds by a - Winchester County Warren Loudoun Shenandoah Fauquier Frederick Average Regional Average County Clarke County County County transfer to the School Debt Service Fund to pay the principal and interest on school mortgages. As debt State County

City increases due to more building and renovating, county funds become limited for the School Operating Fund.

Virginia does not impose a debt limitation on Frederick County. However, Frederick County has adopted Source: FY 2019 Annual School Report, Virginia Department of Education debt management policies that include: • confining long-term borrowing to capital improvements that cannot be financed from current revenues COST PER PUPIL COMPARISON except where approved justification is provided, FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 • debt for capital construction and improvements are repaid over the expected useful life of the project, Winchester City 12,587 12,724 13,057 13,638 14, 091 and Clarke County 11,096 11,253 11,631 12,034 12, 250 • long-term debt is not used for current operations. Warren County 9,900 9,741 10,182 10,625 11, 176 Loudoun County 12,915 13,549 14,317 14,551 15, 277 Frederick County adopted key debt ratio guidelines including tax supported 10‑year payout ratio should Shenandoah County 10,137 10,377 10,737 11,108 11, 619 be greater than 65 percent, debt to assessed value should not exceed 0.75–1.75 percent, and debt Fauquier County 12,173 12,479 12,567 12,891 13, 782 service to governmental expenditures ratio should not exceed 8–12 percent. A statement of outstanding Frederick County 11,009 11,401 11,823 12,411 12,889 debt related to the construction, renovation and improvement to school buildings follows. Revenues from State Average 11,523 11,745 12,171 12,548 12,931 local taxes support $17.0 million to fund school debt service payments. Regional Average 11,402 11,646 12,061 12,465 13,012

109 Informational Section

Statement of Long Term Indebtedness

COUNTY OF FREDERICK, VIRGINIA STATEMENT OF LONG-TERM INDEBTEDNESS PERIOD ENDING JUNE 30, 2020 Authorized Payments Balance Incurred Total Principal Outstanding and Thru June July 1 During Balance & Paid During June 30 SCHOOL VPSA Date Issued 2019 2019 19-20 Incurred 19-20 2020 Orchard View Elementary Apr-99 4,650,000 4,420,000 230,000 230,000 230,000 0 Orchard View Elementary Nov-99 4,100,000 3,895,000 205,000 205,000 205,000 0 Millbrook High/Evendale May-01 16,800,000 14,280,000 2,520,000 2,520,000 840,000 1,680,000 Land/Admiral Byrd Middle Millbrook High School Nov-01 6,150,000 5,235,000 915,000 915,000 305,000 610,000 Millbrook High & James May-02 8,385,000 6,720,000 1,665,000 1,665,000 420,000 1,245,000 Wood Millbrook High, James Wood Nov-02 3,315,000 2,655,000 660,000 660,000 165,000 495,000 Middle & Admiral Byrd Millbrook High School Nov-02 3,782,296 2,940,981 841,315 841,315 205,047 636,268 Millbrook High & James May-03 12,655,000 9,505,000 3,150,000 3,150,000 630,000 2,520,000 Wood Middle Admiral Byrd Middle Nov-03 5,980,000 4,500,000 1,480,000 1,480,000 300,000 1,180,000 Admiral Byrd Middle & May-04 8,580,000 6,020,000 2,560,000 2,560,000 430,000 2,130,000 Evendale Elementary Admiral Byrd Middle & Nov-04 8,550,000 6,000,000 2,550,000 2,550,000 425,000 2,125,000 Evendale Elementary Admiral Byrd Middle & May-05 5,995,000 3,900,000 2,095,000 2,095,000 300,000 1,795,000 Evendale Elementary Evendale Elementary Nov-05 5,685,000 3,705,000 1,980,000 1,980,000 285,000 1,695,000 Evendale & Gainesboro May-06 6,305,000 3,785,000 2,520,000 2,520,000 315,000 2,205,000 Elementary Gainesboro Replacement Nov-06 5,830,000 3,510,000 2,320,000 2,320,000 290,000 2,030,000 Gainesboro Replacement May-07 4,370,000 2,420,000 1,950,000 1,950,000 220,000 1,730,000 Greenwood Mill Elementary Nov-07 3,800,000 2,090,000 1,710,000 1,710,000 190,000 1,520,000 Greenwood Mill Elementary, Transportation, Apple Pie May-08 13,450,000 6,750,000 6,700,000 6,700,000 670,000 6,030,000 Ridge Elementary, & Frederick County Middle Greenwood Mill Elementary Nov-08 5,720,000 2,870,000 2,850,000 2,850,000 285,000 2,565,000 Transportation Nov-11 7,975,000 2,800,000 5,175,000 5,175,000 400,000 4,775,000 Transportation Dec-11 7,000,000 2,560,000 4,440,000 4,440,000 370,000 4,070,000 Elementary Additions, 4th High School & Frederick Nov-12 4,435,000 1,350,000 3,085,000 3,085,000 225,000 2,860,000 County Middle Elementary Additions & Nov-13 5,025,000 1,270,000 3,755,000 3,755,000 250,000 3,505,000 Frederick County Middle Frederick County Middle & May-14 4,390,000 880,000 3,510,000 3,510,000 220,000 3,290,000 4th High School Frederick County Middle Nov-14 13,375,000 2,675,000 10,700,000 10,700,000 670,000 10,030,000 Frederick County Middle Nov-15 18,535,000 2,790,000 15,745,000 15,745,000 930,000 14,815,000 Frederick County Middle May-16 8,100,000 810,000 7,290,000 7,290,000 405,000 6,885,000 Jordan Springs Elementary May-18 6,320,000 0 6,320,000 6,320,000 320,000 6,000,000 Jordan Springs Elementary Nov-18 10,035,000 0 10,035,000 10,035,000 505,000 9,530,000 Robert E Aylor Middle Nov-18 3,720,000 0 3,720,000 3,720,000 190,000 3,530,000 Jordan Springs Elementary May-19 7,220,000 0 7,220,000 7,220,000 7,220,000 Robert E Aylor Middle May-19 4,100,000 0 4,100,000 4,100,000 4,100,000 Jordan Springs Elementary Nov-19 810,000 810,000 810,000 Robert E Aylor Middle Nov-19 14,245,000 14,245,000 14,245,000 Robert E Aylor Middle May-20 7,500,000 7,500,000 7,500,000

Total Bonds $ 234,332,296 $ 110,335,981 $ 123,996,315 $ 22,555,000 $ 146,551,315 $ 11,195,047 $ 135,356,268

110 Informational Section

School Division Accountability Accreditation standards developed by the Virginia Board of Education measure performance on multiple school-quality indicators, not just on overall student achievement on state tests. Specific measures for both elementary and secondary grade levels are detailed below:

Elementary and middle schools are evaluated on the following indicators: • Overall proficiency and growth in English reading/writing achievement (including progress of English learners toward English-language proficiency) • Overall proficiency and growth in mathematics • Overall proficiency in science • English achievement gaps among student groups • Mathematics achievement gaps among student groups • Absenteeism

High schools are evaluated on the following school-quality indicators: • Overall proficiency in English reading/writing and progress of English learners toward English- language proficiency • Overall proficiency in mathematics • Overall proficiency in science • English achievement gaps among student groups • Mathematics achievement gaps among student groups • Graduation and completion • Dropout rate • Absenteeism • College, career and civic readiness

Performance on each school-quality indicator is rated at one of three levels:

Performance Level Description Level One Meets or exceeds standard or sufficient improvement Level Two Near standard or making sufficient improvement Level Three Below standard

Under the new system, schools earn one of the following three accreditation ratings based on performance levels the school received on each school-quality indicator: 1. Accredited—Schools with all school-quality indicators at either Level One or Level Two 2. Accredited with Conditions—Schools with one or more school-quality indicators at Level Three 3. Accreditation Denied—Schools that fail to adopt or fully implement required corrective actions to address Level Three school-quality indicators. A school rated as Accreditation Denied may regain state accreditation by demonstrating to the Board of Education that it is fully implementing all required corrective action plans.

111 Informational Section

One hundred percent of FCPS Schools received a rating of “Accredited” for the 2019-2020 school year based on school-quality indicators from the 2018-2019 school year.

FCPS Accreditation Status 2019-20 School Year

100% Fully Accredited

SCHOOL QUALITY INDICATOR AND ACCREDITATION DETAIL SCHOOL YEAR 2019-2020 BASED ON DATA FROM THE 2018-2019 SCHOOL YEAR School Performance Level Academic Academic Academic Achievement Acheivement Chronic Accreditation Achievement- Achievement - Achievement Gap - English Gap - Math Absenteesism Rating English Math Science Apple Pie Ridge Elementary L1 L1 L1 L1 L1 L1 Accredited Armel Elementary L1 L1 L1 L2 L1 L1 Accredited Bass-Hoover Elementary L1 L2 L1 L1 L1 L1 Accredited Evendale Elementary L1 L2 L1 L2 L1 L1 Accredited Gainesboro Elementary L1 L2 L1 L2 L1 L1 Accredited Greenwood Mill Elementary L1 L1 L1 L1 L1 L1 Accredited Indian Hollow Elementary L2 L2 L1 L2 L1 L1 Accredited Middletown Elementary L1 L1 L1 L1 L1 L1 Accredited Orchard View Elementary L1 L1 L1 L1 L1 L1 Accredited Redbud Run Elementary L1 L2 L1 L1 L1 L1 Accredited Stonewall Elementary L1 L2 L1 L2 L1 L1 Accredited Admiral Richard E. Byrd Middle L1 L2 L1 L1 L1 L1 Accredited Frederick County Middle L1 L2 L1 L2 L1 L1 Accredited James Wood Middle L1 L2 L1 L1 L1 L1 Accredited Robert E. Aylor Middle L1 L2 L1 L2 L1 L1 Accredited James Wood High L1 L2 L1 L1 L1 L1 Accredited Millbrook High L1 L2 L1 L2 L1 L2 Accredited Sherando High L1 L1 L1 L1 L1 L1 Accredited

Performance Level Legend: L1 - Level One: Meets or exceeds standard or sufficient improvement L2 - Level Two: Near standard or making improvement L3 - Level Three: Below standard

112 Informational Section

The following graphs compare FCPS' Standards of Learning performance for all student groups across grades 3‑11 to the Virginia state average.

Reading 90 80 70 60 50 61 61 62 62 62 40 61 30

Percent Passing 20 10 15 19 14 17 13 16 0 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

Reading Advanced Reading Proficient

Writing 90 80 70 60 54 50 55 56 54 52 51 40 30

Percent Passing 20 10 23 25 19 24 23 24 0 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

Writing Advanced Writing Proficient

Math 90 80 70 60 50 66 61 62 60 61 68 40 30 Percent Passing 20 10 15 17 15 17 12 16 0 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

Math Advanced Math Proficient

113 Informational Section

History 100

80

60 61 60 60 60 59 58 40

Percent Passing 20 26 26 24 24 22 22 0 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

History Advanced History Proficient

Science 90 80 70 60 50 71 67 67 66 65 64 40 30

Percent Passing 20 10 12 15 12 15 15 17 0 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

Science Advanced Science Proficient

To assist in improving student performance, FCPS allocated FY 2021 budgetary funds for more classroom teachers.

Virginia On-time Graduation Rate 96

94

92

90 Graduation Percentage Graduation 88 FCPS State FCPS State FCPS State 2016-17 2017-18 2018-19

114 Informational Section

Accreditation ratings for high schools include a Graduation and Completion Index (GCI) which must be 85 points or greater to receive accreditation. This accountability measure awards full credit for students who earn Virginia Board of Education-approved diplomas and partial credit for other outcomes such as GED or Certificate of Program Completion. The GCI calculation comprises students in a cohort of expected on-time graduates.

Class of 2019

100% 3.7% 5.6% 3.6% 2.9% 90%

80%

70% 42.9% 40.0%

60%

50%

40%

30% 49.9% 51.5% 20%

10%

0% FCPS State Advanced Diplomas Standard/Other Diplomas GEDs, Certificate & Other Non-Graduates Dropouts

Federal Graduation Indicator For federal accountability purposes, Virginia reports a graduation rate known as the Federal Graduation Indicator, which unlike the Virginia On-Time Graduation Rate, does not adjust high school cohorts to account for students’ English language learner or disability status, and only includes Standard Diplomas and Advanced Studies Diplomas in the numerator.

Like the Virginia On-Time Graduation Rate, the Federal Graduation Indicator is an adjusted cohort graduation rate based on cohorts of students who enter ninth grade for the first time; it is adjusted for students who transfer in or transfer out of high school, school division, or the commonwealth.

Federal Graduation Indicator: All Students 94

92

90

88

86 Graduation Percentage Graduation 84 FCPS State FCPS State FCPS State 2016-2017 2017-2018 2018-19

Source: Virginia Department of Education

115 Informational Section

Student Drop Out Rates School divisions annually report on the number of students in grades 7 through 12 who drop out of school during the school year. These dropout percentages represent the number of dropouts for a given school year divided by the membership on September 30 of that school year.

NUMBER AND PERCENTANGE OF FCPS STUDENT DROPOUTS BY SCHOOL YEAR 2016-2017 2017-2018 2018-2019 School Year School Year School Year Total Number of Student Dropouts 67 84 48

% of Total Fall Student Membership 1.1% 1.3% 0.8%

FCPS Graduation Statistics – Class of 2020 • 987 students graduated from Frederick County Public Schools in 2020. • 75 percent of the class planned to continue their education. • 70.5 percent of the class planned to attend college. • 60 percent of the class were Career and Technical Education Completers. • 54.3 percent earned an advanced studies diploma.

Economically Disadvantaged The number of students eligible for free or reduced-priced lunch programs (economically disadvantaged students) has increased by about 12 percent during the last five years. About 5,000 students are expected to be eligible for free or reduced-priced meals in FY 2021.

Percentage of Students Eligible for Free, Reduced, or Full-Priced Meals 100%

80% 66.1% 66.8% 67.3% 65.5% 65.7% 64.6% 60% % Full % Reduced 40% 6.6% 6.2% 6.7% 5.9% 5.8% 6.4% % Free 20% 27.3% 27.0% 26.0% 28.6% 28.4% 29.0% 0% 2015 2016 2017 2018 2019 2020

116 Informational Section

Niche Ranking – FCPS Ranked 34th in Virginia The 2020 Best School Districts ranking by Niche is based on academic and student life data from the U.S. Department of Education along with test scores, college data, and ratings collected from Niche users including parents and students. FCPS is ranked number 10 of 132 of districts with the best teachers and 18 of 132 for the best place to teach.

NICHE SCHOOL DISTRICT RANKING 2020

School District State Ranking Overall Niche Grade Academics Teachers Clubs & Activities Diversity College Prep Health& Safety Admini- stration Food Sports Resources & Facilities Loudoun County 4 A A A A A- A+ A- B+ C+ A+ B+

Fauquier County 30 B+ B+ B B+ B A- B+ B- C+ A- B-

Frederick County 34 BB A- BB A- B- B C+ A B- Winchester City 35 BB B- AAA A- C+ CA B+

Clarke County 50 BB C+ B B- B+ A- C B- AB

Shenandoah County* C+ B- C+ B- BBCC C+ A- B-

Warren County* C C+ C- B- BB C+ BC B- B-

*State ranking not provided Source: Niche 2020 School and District Rankings (niche.com)

117 Informational Section

Programs and Departments Instruction and Student Support Departments The Instruction and Student Support departments provide leadership, assistance, and instruction to student learning in classrooms during the instructional day and before or after school cocurricular and extracurricular activities. The departments also provide student support services such as guidance, social work, instruction for students on homebound, improvement of instruction delivery and curriculum, media services, school administration, student attendance, nursing, and psychological. Students are served in kindergarten through twelfth grades. A limited number of preschool students are also served. Leadership and administration accountability of instruction includes the superintendent, assistant superintendent for instruction, instructional directors, instructional assistant directors, and instructional content supervisors.

INSTRUCTION & STUDENT SUPPORT DEPARTMENTS—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 86,204,890 85,028,270 90,081,740 90,993,495 Benefits 34,599,867 34,209,043 35,903,380 37,371,019 Purchased Services 2,736,370 1,583,434 2,487,347 4,312,946 Other Charges 695,485 755,355 775,002 790,450 Materials and Supplies 2,423,657 3,329,306 2,709,745 2,919,307 Payments to Joint Operations 3,634,335 3,450,853 4,096,515 4,196,427 Capital Outlay 145,532 102,811 31,000 24,000 Total $ 130,440,136 $ 128,459,073 $ 136,084,729 $ 140,607,643 Full-time Equivalent Positions 1,565.6 1,602.8 1,638.7 1,680.9 Numbers may not add correctly due to rounding

FY 2021 Changes Major initiatives to implement in FY 2021 in the operating budget include: • Open Jordan Springs Elementary, the county's 12th elementary school • Continuous professional learning and student support service focused on student mental health • Additional staffing to support student enrollment growth

Accomplishments • Collaborated with educators, parents, and community leaders focused on the division strategic plan and implementation of “Portrait of a Graduate” • Provided comprehensive and systemic professional learning to create equitable places of learning for all students • Received the 2019 Virginia High School School Technology Education Program of the Year Award from Virginia Technology and Engineering Education Association recognizing Sherando High School’s technology education program • Received the 2020 Virginia Association for Career and Technical Education Administrator of the Year • Ranked in the top school districts in Virginia by Niche – ranking 10th out of 132 school divisions for the best teachers in Virginia

118 Informational Section

Board Services Board services include activities of the School Board. The School Board has the responsibility for educational activities in the division. Legislative responsibilities of the School Board are as follows: • Select superintendent of schools; • Determine studies to pursue, governance of the schools, and length of the school term; • Provide suitable school buildings with proper furniture and equipment and to care for, manage, and control the school property of the county; • Provide for the preparation and adoption of the annual school budget; • Consider and act upon recommendations of the superintendent in all matters of policy, appointment or dismissal of employees, salary schedules, other personnel policies, courses of study, and other matters pertaining to the welfare of the schools; • Receive and consider reports by the superintendent concerning the condition, efficiency, and needs of the schools; and • Appraise the effectiveness of schools in achieving educational purposes.

BOARD SERVICES—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 115,383 118,337 120,413 120,413 Benefits 23,236 23,424 23, 799 24,663 Purchased Services 14,682 7,912 5,000 5,000 Other Charges 25,618 24,731 26,520 23,500 Materials and Supplies 1,619 1,332 5,900 5,900 Capital Outlay - - - - Total $ 180,539 $ 175,736 $ 181,632 $ 179,475

Full-time Equivalent Positions 0.9 0.9 0.9 0.9

Numbers may not add correctly due to rounding

119 Informational Section

Executive Administration The superintendent of schools serves as the chief executive officer of the School Board and is responsible for: • Operation of the school system and may delegate duties to subordinate officers or employees as required for effective administration; • Organizing and assignment of teachers, administrative and supervisory staff, and other employees in a manner deemed in the best interest of the school division; • Recommend to the School Board the selection, assignment, and transfer of all personnel; and • Administrative, instructional, and business affairs of the school division and carrying out those duties with the assistance of administrative and instructional staff.

The Executive Administration Office leadership includes the superintendent and assistant superintendent for administration.

EXECUTIVE ADMINISTRATION—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 642,558 646,336 683,431 690,269 Benefits 290,186 284,323 348,598 370,597 Purchased Services 37,635 90,581 82,190 82,190 Other Charges 23,590 22,934 23,050 23,050 Materials and Supplies 16,031 15,069 10,442 10,442 Capital Outlay - - 2,000 2,000 Total $ 1,010,000 $ 1,059,243 $ 1,149,711 $ 1,178,548 Full-time Equivalent Positions 7.2 7.2 7.1 7.1

Numbers may not add correctly due to rounding

120 Informational Section

Policy and Information Services Department The Policy and Information Services department develops and revises school policy and regulation as well as the school division’s communication and engagement efforts with various stakeholder groups. Goals of the department include expanding the school division’s presence on social media and engaging citizens through the FCPS 101 class activities effort. Leadership accountability of the department includes a coordinator of policy and communications. The coordinator reports to the superintendent.

POLICY & INFORMATION SERVICES—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 364,104 385,701 395,636 366,607 Benefits 136,682 142,341 146,133 133,486 Purchased Services Dr. Sovine and student 4,089 volunteers organizing 6,455 food 13,000 12,000 Other Charges donations for Bright Futures 5 - 250 3,270 Materials and Supplies 53,370 54,535 49,625 50,625 Capital Outlay - - - - Total $ 558,250 $ 589,032 $ 604,644 $ 565,988

Full-time Equivalent Positions 5.0 5.0 4.5 4.5 Numbers may not add correctly due to rounding

Accomplishments • Received awards of excellence from the Chesapeake Region of the National School Public Relations Association for the Frederick County Public Schools Annual Report, web page, employee newsletter, and annual budget report

121 Informational Section

Human Resources Department The Human Resource Department provides services to employees related to staffing, recruitment, employee orientation, training, and benefits administration. Leadership and administration accountability of the Human Resources Department includes an executive director and assistant director. The executive director reports to the superintendent for administration.

HUMAN RESOURCES—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 846,947 732,516 648,460 617,939 Benefits 332,682 325,521 246,806 248,840 Purchased Services 38,847 48,498 62,300 65,800 Other Charges 9,162 9,237 9,150 14,150 Materials and Supplies 80,028 62,142 68,298 63,298 Capital Outlay 13,029 4,336 11,500 8,000 Total $ 1,320,696 $ 1,182,250 $ 1,046,514 $ 1,018,027

Full-time Equivalent Positions 12.6 8.6 8.6 8.6 Numbers may not add correctly due to rounding

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Planning and Development Department The Planning and Development Department activities include planning, research, analysis, property evaluation, and property development to support instructional programs. This department prepares the Capital Improvement Plan for School Board adoption, forecasts student enrollment, prepares school attendance boundary adjustments and new school zonings, and is involved in the planning of property acquisition, development, and facility renovations and additions. Leadership accountability of the department includes a coordinator of planning and development. The coordinator reports to the assistant superintendent for administration.

PLANNING & DEVELOPMENT—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 63,203 67,339 70,350 80,464 Benefits 24,803 25,105 25,776 30,910 Purchased Services 18,900 70,500 30,000 30,000 Other Charges - - - - Materials and Supplies 5,300 7,532 5,500 5,500 Capital Outlay - - - - Total $ 112,206 $ 170,476 $ 131,626 $ 146,874

Full-time Equivalent Positions 0.8 0.8 1.0 1.0 Numbers may not add correctly due to rounding

Accomplishments • Coordinated the designs of the fourth high school, Jordan Springs Elementary, and Aylor Middle replacement projects. • Coordinated elementary rezoning efforts in preparation of the opening of Jordan Springs Elementary School.

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Finance Department The Finance Department provides financial and risk management services for the school division including accounting functions such as accounts payable, accounts receivable, cash handling, and general ledger; budget development and financial monitoring; reporting and analysis; student activity funds oversight across 21 school locations; payroll; and procurement. Leadership and administration accountability of the finance department includes an executive director, assistant director, payroll supervisor, accounting supervisor, and purchasing supervisor. The executive director reports to the superintendent.

FINANCE DEPARTMENT—BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 778,468 909,905 1,154,625 1,089,629 Benefits 303,890 366,533 449,871 426,519 Purchased Services 75,558 73,714 88,630 85,645 Other Charges 3,295 5,535 9,193 9,835 Materials and Supplies 15,584 16,723 34,703 35,046 Capital Outlay - - - - Total $ 1,176,796 $ 1,372,409 $ 1,737,021 $ 1,646,674

Full-time Equivalent Positions 10.7 14.7 14.5 13.5 Numbers may not add correctly due to rounding

FY 2021 Changes Significant changes to implement in FY 2021 in the operating budget: • Repurposed a finance analyst position to a classroom teaching position

Accomplishments • Received Meritorious Budget Award from Association of School Business Officials for the seventh consecutive year.

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Transportation Department The Transportation Department is responsible for: • Transporting and supervising students to and from school including trips between home and school, and trips to and from activities; • Directing and managing student transportation services; • Maintaining student transportation vehicles – repairing, replacing, cleaning, painting, fueling, and inspecting for safety; • Purchasing of school buses and support vehicles; and, • Maintaining all vehicles owned by the school division.

Leadership and administration accountability of the Transportation Department includes the director, supervisor of bus operations, and supervisor of vehicle maintenance services. The director reports to the assistant superintendent for administration. TRANSPORTATION DEPARTMENT - BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 4,194,478 4,588,840 4,989,957 5,087,056 Benefits 2,254,764 2,524,128 2,687,578 2,783,767 Purchased Services 983,281 1,065,894 1,285,537 1,246,494 Other Charges 342,925 394,940 395,570 412,720 Materials and Supplies 1,127,192 1,043,281 1,038,827 1,059,491 Capital Outlay 984,689 96,452 - 100,000 Total $ 9,887,329 $ 9,713,535 $ 10,397,470 $ 10,689,528

Full-time Equivalent Positions 219.0 229.0 246.0 246.0 Numbers may not add correctly due to rounding

FY 2021 Changes Significant changes to implement in FY 2021 in the operating budget include: • One new driver and bus route for Jordan Springs Elementary School

Accomplishments • Bus fleet amassed almost 2.4 million miles over the year, traveling an average of more than 12,800 miles per day, completing more than 700 routes with 184 routed regular and special education buses.

School Bus Fleet 249 total number of buses 164 regular routed buses 39 special education buses 5 activity buses 41 spare (parts) Age/Condition of buses 59 buses 5 or less years old 93 buses less than 100,000 miles 27 buses 6 to 10 years old 37 buses have 100,000 to 150,000 miles 69 buses 11 to 15 years old 34 buses have 150,000 to 200,000 miles 48 buses 16 to 20 years old 37 buses have 200,000 to 250,000 miles 46 buses over 20 years old 48 buses have over 250,000 miles

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Facilities Services and Planning Department The Facilities Services Department including planning department is involved in activities associated with the physical plant and grounds of the school division. These activities include: • Keeping the physical plant open, comfortable, clean, and safe for use; • Maintaining the grounds, buildings, and equipment in effective working condition; • Directing, managing, and supervising the construction, operation, and maintenance of school facilities; • Operating heating, lighting, and ventilating systems and replacing equipment; • Maintaining and improving land, snow removal, landscaping, playgrounds, and grounds maintenance; • Maintaining equipment owned and servicing and replacing furniture, machines, and movable equipment; • Warehousing and distributing supplies, furniture, equipment, materials, and food; • Overseeing new construction and renovations of school buildings; • Identifying potential school facility sites, acting as liaison with property owners, overseeing site studies; • Supporting negotiations for school facility property acquisition; • Planning and designing of new or renovated schools to support instructional delivery and extracurricular activities; and, • Coordinating and facilitating needs assessments of current facilities with outside professional services including architectural and engineering, environmental, and legal to determine renovation, replacement, or other possible courses of action for administrative and School Board consideration.

Leadership and administration accountability of the Facilities Department includes a director, assistant director, supervisor of buildings and grounds, and two facilities services coordinators. A portion of the facilities planning coordinator is also included here. Supervisor of construction and clerks of the works are recorded here. The director, supervisor of construction, and planning coordinator report to the assistant superintendent for administration.

FACILITIES SERVICES AND PLANNING - BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 5,293,776 5,602,580 5,878,487 6,013,038 Benefits 2,006,446 2,109,672 2,269,705 2,282,056 Purchased Services 2,300,375 1,490,935 1,958,893 2,202,577 Other Charges 3,868,280 4,096,618 4,216,973 4,404,585 Materials and Supplies 1,345,785 1,155,034 1,078,758 1,133,932 Capital Outlay 898,145 904,718 182,731 142,731 Total $ 15,712,808 $ 15,359,558 $ 15,585,547 $ 16,178,919

Full-time Equivalent Positions 128.3 130.3 133.0 137.0 Numbers may not add correctly due to rounding

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FY 2021 Changes Significant changes to implement in FY 2021 in the operating budget: • Additional custodians and a maintenance technician to open the new Jordan Springs Elementary • Funds increased to support the new Jordan Springs Elementary and division-wide facilities preventative maintenance

Accomplishments • Enhanced school entrances to address student and staff safety and security. • Developed the Capital Asset Plan (CAP) to identify and request funding of major system replacement and maintenance projects with a minimum of $25,000 and an expected useful life of 10 or more years. These projects do not qualify for the Capital Improvements Plan.

FCPS Facilities Square Modular Modular Year School Feet Classrooms Sq Ft Opened James Wood High School 229,187 6 4320 1980 Millbrook High School 253,843 0 2003 Sherando High School 239,517 8 6048 1993 Admiral Richard E. Byrd Middle 159,966 0 2005 Frederick County Middle 186,000 0 2016 James Wood Middle School 149,952 0 1950 Robert E. Aylor Middle 113,348 8 7280 1969 Apple Pie Ridge Elementary 65,120 0 1974 Armel Elementary 70,281 5 4064 1991 Bass Hoover Elementary 70,569 0 1975 Evendale Elementary 89,285 0 2006 Gainesboro Elementary 96,552 0 2007 Greenwood Mill Elementary 100,465 0 2009 Indian Hollow Elementary 59,065 4 3456 1988 Jordan Springs Elementary 84,375 2020 Middletown Elementary 70,281 0 1989 Orchard View Elementary 76,227 0 2000 Redbud Run Elementary 79,076 4 3200 1996 Senseny Road School (NREP) 62,869 0 1966 Stonewall Elementary 67,987 6 5460 1997 Dowel J. Howard Center 70,417 0 1970 Administration Building 28,232 4 3456 1961 Old Transportation Facility 10,423 0 1972 Transportation Facility 58,832 0 2012 Facilities Services Warehouse 49,626 0 1987 Bowman Library 31,264 County Administration Building 97,640 Total 2,670,399 45 37,284

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Information Technology Department The Information Technology Department provides information technology leadership, products, and services to the school division while managing division-wide information resources and ensuring information security and integrity. The department provides network and computer hardware support, technology resource coaches, audio/visual services, student management system support, human resources and financial management systems support, a help desk, a technology training center, and software programming support. Leadership and administration accountability for the Technology Department includes a director, two assistant directors, and two supervisors. The director reports to the assistant superintendent for administration and assistant superintendent for instruction.

INFORMATION TECHNOLOGY - BUDGET HISTORY FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL APPROVED APPROVED Salaries 3,379,592 3,543,056 3,704,344 3,704,913 Benefits 1,313,081 1,359,909 1,455,607 1,473,387 Purchased Services 52,945 125,124 230,200 125,200 Other Charges 31,281 37,777 409,250 413,890 Materials and Supplies 2,174,951 2,551,175 1,823,656 2,080,056 Capital Outlay 26,544 127,086 877,890 607,935 Total $ 6,978,394 $ 7,744,126 $ 8,500,947 $ 8,405,381

Full-time Equivalent Positions 48.2 50.2 50.7 51.2 Numbers may not add correctly due to rounding

FY 2021 Changes Significant changes to implement in FY 2021 in the operating budget: • Additional technology instructional coach for the new Jordan Springs Elementary School • Additional funds to support the 1:1 student technology device due to student enrollment growth

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Glossary This glossary includes definitions of terms used in this budget document and other terms that seem necessary for an understanding of financial accounting procedures for Frederick County Public Schools.

Accrual Basis – The basis of accounting which indicates revenues are recorded when they are earned (whether or not cash is received at the time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at the time or not).

Allocation – The amount of funding appropriated to an agency. Types of allocations include per-pupil allocations, fixed allocations and replacement equipment allocations.

American Recovery and Reinvestment Act (ARRA) – An act initiated and signed by U.S. President Barrack Obama in February 2009 in response to weak economic conditions. The act was created to stimulate the economy through individual and corporate tax cuts, leniency in unemployment benefits, increased domestic spending, and increased social welfare funding.

Appropriation – An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes.

ASBO – Association of School Business Officials.

Audit – The examination of documents and procedure to ascertain that school operations have been handled accurately, legally and responsibly.

Average Daily Membership (ADM) – The average daily membership for grades K-12 is the enrollment figure used to distribute state per pupil funding. It includes students with disabilities ages five to 21 and students for whom English is a second language who entered school for the first time after reaching their 12th birthday and who have not reached their 22nd birthday. Preschool and post-graduate students are not included in the ADM.

BOS – Board of Supervisors.

Bonds – A written promise to pay a specific amount of money (face value) and interest over a specific period of time. Bonds for school purposes are either General Obligation Bonds or Virginia Public School Authority Bonds.

Budget – A plan of financial operation embodying an estimate of proposed expenditures for a given period or purpose and the proposed means of financing them.

Capital Budget – A plan of proposed capital outlays and the means of financing them for the current fiscal period.

Capital Improvement Plan – The five-year plan for school division construction projects.

Capital Outlay – Expenditures for fixed assets or additions to fixed assets, i.e., land, existing buildings, construction, major equipment.

Cash Basis – The basis of accounting, which indicates transactions are recognized only when cash is received or disbursed.

Cocurricular – Programs offered that have a direct relation to a class or course, e.g., FBLA–business, FFA–agriculture.

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Composite Index – Measure in Article VIII, Section 2 of the Constitution of Virginia that authorizes the General Assembly to determine the cost of education as prescribed by the Standards of Quality and to apportion those costs between the state and local governments. Local governments are required to pay their respective shares of this prescribed cost from local taxes and other sources of local revenue. The composite index of local ability-to-pay is the measure used to determine the state and local shares of education costs, and it is based on local sources of revenue. The composite index is expressed as a ratio, indicating the local percentage share of the cost of education programs. For example, if a given locality has a composite index of 0.5000, then it would pay 50 percent of the costs and the state would pay 50 percent of the costs of the applicable program. If a locality’s index is 0.3000, then it must pay 30 percent of the cost of education and the state will pay 70 percent.

Contracted Services – Labor, material and other costs for services rendered by personnel who are not on the payroll of the school division.

Coronavirus Aid, Relief, and Economic Security (CARES) Act – A law passed by Congress to address the economic fallout of the COVID-19 pandemic in the United States by providing fast and direct economic assistance for American workers and families, small businesses, and preserving jobs for American industries.

Debt Service – Expenditures for the retirement of debt and expenditures for interest on debt.

Direct Aid – Funding appropriated for the operation of the Commonwealth’s public schools that is generally divided among categorical payments, funding for school employee benefits, funding of the Standards of Quality, incentive-based programs, allotment of sales tax and lottery revenues, and specific appropriations for programs such as Governor’s Schools and adult literacy initiatives. Both state and federal funds are appropriated in direct aid. All lottery proceeds are earmarked for public education.

Encumbrances – Obligations in the form of purchase orders, contracts, salaries or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved.

Every Student Succeeds Act (ESSA) – This is a U.S. law passed in December 2015 that governs the United States K–12 public education policy. The law replaced its predecessor, the No Child Left Behind Act (NCLB), and modified but did not eliminate provisions relating to the periodic standardized tests given to students.

Expenditures – Total charges incurred, whether paid or unpaid, for current costs.

Extracurricular - Programs offered that do not have a direct link to a class or course. Activities such as field trips, clubs, assemblies and performances, interscholastic activities, and publication productions.

Fiduciary Fund – A fund held by a governmental unit in a fiduciary capacity or as an agent for an external party, ordinarily as agent or trustee. The Northwestern Regional Education Program (NREP) provides for a special education program jointly operated by Clarke County, Winchester City and Frederick County Schools.

Fiscal Year – Any 12-month period concluded by determination of financial conditions and closing of financial records. Frederick County Public Schools has a fiscal year of July 1 to June 30.

Fixed Allocation – An allocation to an agency for costs of personnel, services and supplies common to agencies regardless of size or student enrollment.

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Fixed Costs – Costs for personnel and resources that remain constant regardless of student enrollment. Examples include salaries, interest expense, depreciation and insurance expenses.

Function – Expenditure classification or category as defined by the Virginia Department of Education.

Fund – A fiscal and accounting entity with a self-balancing set of accounts recording assets and liabilities for specific activities of the school division.

Fund Balance – The excess of assets of a fund over its liabilities and reserves.

Fund Statement – A financial accounting statement that shows all the financial sources available and uses with beginning and ending balances within a fund for a given fiscal year.

General Long-Term Debt – Long-term debt legally payable from general revenues and backed by the full faith and credit of a government unit.

Indirect Costs – Costs necessary for the functioning of the organization as a whole but which cannot be specifically associated with a given service, program or department and, thus, cannot be clearly associated with a particular category.

Instruction – The activities dealing directly with the teaching of students or improving the quality of teaching.

Linear Weighted Average – A calculation that approximates what most school divisions spend to operate their schools. The formula incorporates the costs for every school division but is not unduly influenced by divisions with unusually high or low expenditures. The formula weights division costs at the median at five and the most extreme costs (high and low) at one. It is used to establish the funded cost of many components of the Standards of Quality, such as instructional salaries.

Line Item - A detailed item (expenditure/revenue) classified by object within each organizational unit that details the purpose for which the items are planned and lists them individually on separate lines.

Literary Fund –A permanent and perpetual fund established in the Constitution of Virginia (Article VIII, Section 8). The Literary Fund provides low-interest loans to school divisions for capital expenditures, such as construction of new buildings or remodeling of existing buildings.

Modified Accrual Basis – Basis of accounting, which indicates expenditures other than accrued interest on general long-term debt recorded at the time liabilities are incurred and revenues recorded when received in cash except for material and/or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned.

Object Code – The line item description that denotes the purpose of expenditure.

Operating Fund – Fund that provides for the day-to-day operations and maintenance of the schools and is funded primarily through county, state and federal funds.

Other Post Employment Benefits (OPEB) – an accounting concept created by the Governmental Accounting Standards Board (GASB) by pronouncements designed to address expenses that entities may or may not be legally bound to pay, but pay as a moral obligation, to employees at the start of retirement. This does not include pension benefits paid to the retired employee. Other post-employment benefits that a retiree can be compensated for are life insurance premiums, health care premiums, and deferred-compensation arrangements

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Per Pupil Allocation – An allocation to an agency based on the type and/or number of students enrolled.

Proprietary Funds – Internal service fund account for health insurance, self-insurance and warehouse services provided to departments of FCPS on a cost reimbursement basis. The Health Insurance Fund pays claims and related expenses for the health care program.

Revenue – The income of a government agency from taxation and other sources.

SOA – Standards of Accreditation.

SOL – Standards of Learning.

Standards of Quality (SOQ) – The prescribed minimum program that all public school divisions in Virginia must meet as established in the Constitution of Virginia (Article VIII, Section ) and defined in the Code of Virginia (Sections 22.1-253.13:1 through 22.1-253.13:8). The Board of Education prescribes the Standards of Quality, subject to revision only by the General Assembly. A major portion of state funding for direct aid to public education is based on the Standards of Quality. The Standards of Quality address basic skills, programs, and personnel; support services; accreditation and assessment; graduation requirements; training and professional development; planning and public involvement; policy manual; and compliance and enforcement.

Standards of Accreditation (SOA) – The Board of Education’s regulations that establish criteria for approving public schools in Virginia as authorized in the SOQ (Sections 22.1-253. 13:3 of the Code of Virginia), Standards of Accreditation.

Standards of Learning (SOL) – The minimum grade level and subject matter educational objectives that students are expected to meet in Virginia public schools as specified by the SOQ (Sections 22.1-253.13:1 of the Code of Virginia). The educational objectives describe the knowledge and skills “necessary for success in school and for preparation for life.”

State Category – The broad expenditure categories for school divisions determined by the State Board of Education. Current state categories are as follows: • Administration, Health, and Attendance • Instruction • Debt Service • Maintenance and Operations • Pupil Transportation • Food Services and Other Non-Instructional Operations • Facilities

State Funding Formula – Funding for 136 public school divisions provided by Virginia through the commonwealth’s direct aid to public education budget. The three types of education programs funded in Virginia are Standards of Quality (SOQ), Incentive-Based Programs, and Categorical Programs.

SOQ funding is prescribed by statute and includes basic aid, special education, vocational education, remedial education, gifted education, and related fringe benefits for each of these programs. It also includes the one-cent state sales tax dedicated to public education. Incentive-based programs provide additional education funding that goes beyond the levels required to meet the Standards of Quality. The programs are voluntary, but, in order to receive state funds, school divisions must certify that they will offer the program and provide a local match of funds for the program. Incentive-based programs include the following: at-risk, primary class size reduction, at-risk four year olds, early reading intervention,

132 Informational Section maintenance supplements, and distribution of lottery profits. Categorical funding also provides for additional education programs that go beyond the Standards of Quality. These programs focus on particular needs of special populations or fulfill particular state obligations. State and federal statutes and regulations mandate much of this funding. Examples of categorical funding include alternative education, funding for limited-English proficient students, school nutrition, adult education, and various regional programs.

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A Accountability 111 Accounting practices 52 Accreditation and Standards of Learning assessments 111 Allocation of human and financial resources 9 Approved budget 8 Approved revenue summary of all funds 12 Authorized personnel positions 105 Average class size 30 B Basis of accounting 52 Basis of budgeting 50 Benchmark data 29 Board services 119 Budget and financial policies and practices 50 Budget approval 54 Budgetary basis 49 Budget calendar 55 Budget development and management 53 Budget development calendar 8 Budget estimates and forecast assumptions 65 Budget highlights 11 Budget implementation 8 Budget key factors and assumptions 54 Budget management 56 Budget priorities 5, 55 Budget process 7, 53 Budget timeline 53 C Calendar, budget development 8, 55 Calendar, school, FY 2020 104 Capital Asset Plan 19 Capital budget 54 Capital Improvement Plan 44 Capital improvements impact to budget 87 Capital projects budget policy and practices 51 Capital Projects Fund 21, 88 Changes in debt 31 Classification of revenues and expenditures 49 Class sizes 30 Combined fund statement 64 Comprehensive Plan priorities 6 Comprehensive Plan, short range 44 Consolidated Services Fund 23, 93

137 Index

Construction Fund 21, 85 changes in estimates and forecasts 86 Cost per pupil 29, 108 County revenue 14, 61 D Debt changes 31 Debt management 109 policies and practices 51 Debt Service Fund 21, 83 expenditures 83 forecast, assumptions and trends 83 revenue 83 Demographics, student 26, 102 Division Comprehensive Plan, short range 44 Division Strategic Plan, long range 45 Drop out rates 116 E Economically disadvantaged students 26, 102, 116 Educational Technology Plan 44, 47 Encumbrances 52 English language learners 26, 102 Enrollment forecasting 99 Enrollment trends 25, 99 enrollment growth 99 history and projections 100 student demographics 102 student diversity 103 Estimated required local effort 14, 72 Executive administration 120 Expenditure classification 49 Expenditure controls 52 Expenditures, all funds 15, 62 Expenditures, all funds, by object 63 Expenditures, School Operating Fund 18, 20, 73 F Facilities facility directory 40 school location map 41 Facilities services and planning department 126 Federal graduation indicator 115 Federal revenue 13 Fees 49 Fiduciary funds 49, 89 Finance department 124

138 Index

Financial forecasts 24 Financial organization 48 Financial policies and practices 50 Financial reporting policies and practices 52 Financial reporting pyramid 59 Financial statement, all funds, combined 64 Financial structure 59 Frederick County at-a-glance 42 property tax rates and collections 97 values of taxable properties 98 Frederick County organizational chart 97 Fund balance class and policy 51 Fund classification 10 Fund equity/transfers 14 Funds Capital Projects Fund 21, 88 Consolidated Services Fund 23, 93 Construction Fund 21, 85 Debt Service Fund 21, 83 Health Insurance Reserve Fund 23, 94 NREP Operating and Textbook Funds 22, 90 Private Purpose Funds 22, 91 proprietary funds 92 School Nutrition Services Fund 22, 80 School Operating Fund 17, 68 School Textbook Fund 22, 78 Special Grants Fund 22, 82 Fund summaries, individual funds 17 G Glossary 129 Governance structure 35 Governmental funds 48, 66 Graduation statistics 116 Grants Fund 22, 82 H Health Insurance Reserve Fund 23, 94 Human resources department 122 I Impact of local real estate tax on taxpayers 98 Information technology department 128 Inspire 2025: A Promise for Progress 46 Instructional focus 6

139 Index

L Leadership team 5, 39 Legal authority and governance structure 35 Linking budget dollars to student achievement 23 Local Composite Index (LCI) 13, 68 Local taxes 27, 97 impact of real estate tax on taxpayers 98 Long-term indebtedness 110 M Membership history and projections 100 Mission statement 4, 44 N Niche ranking 30, 117 Northwestern Regional Educational Programs (NREP) Funds 22, 90 O Operating expenditures by object 75 Operating expenditures by state category 73 Operating Fund. See School Operating Fund Organizational chart 36 Organization and management structure 33 Other post employment benefit financial disclosure 65 P Per pupil expenditures 29, 108 Personnel changes 28 Personnel positions 105 non-school-based 106 pupil transportation 106 school-based instructional assistants 106 school-based support 106 school-based teachers 105 Planning and development department 123 Planning documents 44 Planning process 6, 44 Policy and information services department 121 Portrait of a graduate 45 Position changes 107 Private Purpose Funds 22, 91 Programs and departments 118 board services 119 executive administration 120 facilities services and planning department 126 finance department 124 human resources department 122

140 Index

information technology department 128 instruction and student support departments 118 planning and development department 123 policy and information services department 121 transportation department 125 Property tax rates and collections 97 Proprietary funds 48, 92 Pupil teacher ratios 9 R Required local effort 14, 72 Revenue 12, 49, 60 county revenue 14, 72 federal revenue 13, 70 fund equity/transfers 14 other revenue 14, 71 revenue comparison 15 School Operating Fund 17 state revenue 13, 68 Revenue by source 60 Revenue classification 49 Revenue comparison 15 Revenue summary of all funds 12 S School board 5, 37 school board members 5, 37 School board funds, all 60 School calendar, FY 2021 104 School Construction Fund 21, 85 School division accountability 111 federal graduation indicator 115 graduation statistics 116 student drop-out rates 116 School Health Insurance Fund 23, 94 School location map 41 School Nutrition Services Fund 22, 80 expenditures 81 fund balance 81 revenue 80 School Operating Fund 17, 68 baseline adjustments 19 expenditures 18, 20 revenue 17, 68 School Textbook Fund 22, 78

141 Index

Special Grants Fund 22, 82 State revenue 13, 69 Strategic Plan 4, 45 Student demographics 26, 102 Student diversity 103 Student drop out rates 116 Student enrollment 25, 100, 101 Students with disabilities 102 Student to teacher ratio 29 Superintendent's leadership team 5, 39 Superintendent's proposed budget 7 T Taxes, local 4 Tax rates and collections 27, 97 impact of real estate tax on taxpayers 98 Teacher statistics 105 Technology plan. See Educational Technology Plan Textbook adoption schedule 79 Textbook Fund 22, 78 expenditures 79 revenues 78 Transportation department 125 Tuition and fees 49 V Virginia statutes and regulations 35 Vision 4, 44

142 This page intentionally left blank. 1415 Amherst Street

Post Office Box 3508

Winchester, Virginia 22604

540-662-3888

For more information on current budget and programs, visit us at www.frederick.k12.va.us