Financial Affairs Committee March 2018 - Cheltenham School District

0 downloads 96 Views 4MB Size Report
Mar 6, 2018 - Certified Assessment Value from Montgomery County Board of Assessment ... Primarily in Earned Income Tax a
Financial Affairs Committee Meeting March 6, 2018

2018-19 Budget

1

OBJECTIVES FOR 2018-19 BUDGET Maximizing educational opportunities and resources for students • Centered on district goals and strategic plan pathways üStudent Growth and Achievement üSchool Climate and Culture üProfessional Learning üHolistic Experiences üCyclical Facility Maintenance Maintaining financial stability and accountability

2018-19 BUDGET PRIORITIES • Meeting all contractual obligations • Maintain existing level of academic programs and services • Maximize cost savings: • • • • •

Reallocation of transportation contract savings Review of current staffing structure - district-wide Exploration of energy savings Minimize/eliminate non-essential expenditures Monitoring overtime and additional pay

2016-17 Actual

2017-18 Budget

2018-19 Preliminary Budget

Revenues Local Current Real Estate Taxes

78,928,094

80,049,460

84,945,709

Act 511 Taxes

4,877,220

4,582,840

4,610,139

Other Local Revenue

4,553,373

3,686,715

4,100,308

23,243,257

23,772,019

20,824,354

931,242

617,116

917,116

963,550

1,677,271

113,671,700

117,074,897

State Federal Fund Balance Total Revenues

112,533,186

*For preliminary discussion, includes anticipated Property Tax Relief funding; will be reallocated to state revenue in May 2018

4

Property Tax Relief Funding The Taxpayer Relief Act, Act 1 of Special Session 1 of 2006, was signed into law on June 27, 2006. The Taxpayer Relief Act provides for property tax reduction allocations to be distributed by the Commonwealth to each school district. Property tax reduction will be through a “homestead or farmstead exclusion.” Generally, most owner occupied homes and farms are eligible for property tax reduction. Only a primary residence is eligible for property tax relief. Property Tax Relief funding is certified by PDE in May. For budgeting purposes, property tax revenue is not reduced by the Property Tax Relief funding until the allocations are certified. Once allocations are certified, state revenue will be increased by allocation and local revenue (tax revenue will be reduced)

5

Revenue Assumptions ØReal Estate Tax Revenue

• Certified Assessment Value from Montgomery County Board of Assessment Appeals for the 2018 tax year - $1,865,868,280 • Slight increase from 2017-18 • Continue to monitor assessment appeals and impact on county assessment

• Act 1 Index of 2.4% or 1.1028 mills will generate an additional $1,983,651 • • • •

Impact on Median Assessed homeowner ($144,290) = increase of $13.26/month or $159.13/year Value of a mill is $1,798,970 Every 0.10% of an increase will generate $82,927 in additional tax revenue Every 0.10% of an increase will increase the millage rate 0.046 mills

ØOther Local Revenue trend continues between 2-3% growth ØUtilization of $1,677,271 in fund balance ØState Revenue

• Reflects 2017-18 allocations Ø February 2018 State Budget Address calls for an increase in BEF and Special Education funding totaling

$159,311

ØFederal Revenue

• Includes addition of $300,000 for ACCESS draw down

6

Revenue Budget Development Revenue Drivers: • Tax increase of 2.4% (Index) has been factored into real estate tax revenue • Real estate collection rate - 96.4% • Overall increase of 2-3% in other local revenue

• Primarily in Earned Income Tax and Earnings on Investments

• Utilization of Fund Balance for non-recurring expenditures • Curriculum writing and materials; strategic plan initiatives; STEM, PBL and Innovation initiatives; and building improvements

Revenue Variables: • Assessment remains flat-lined • Lack of Federal and State funding for mandated initiatives 7

Act 1 Index - History

Year

Act 1 Index

CSD Tax Increase

2006-07

3.90%

2007-08

Year

ACT 1 Index

CSD Tax Increase

6.88%

2013-14

1.70%

1.70%

3.40%

8.49%

2014-15

2.10%

3.26%

2008-09

4.40%

5.16%

2015-16

1.90%

1.90%

2009-10

4.10%

5.34%

2016-17

2.40%

1.30%

2010-11

2.90%

6.01%

2017-18

2.50%

1.90%

2011-12

1.40%

0.00%

2018-19

2.40%

2012-13

1.70%

0.00%

Expenditure Description

Object

2016-17 Actual

2017-18 Approved Budget

2018-19 Preliminary Budget

100

Salaries

50,100,819

51,259,100

53,371,314

200

Benefits

29,052,769

28,917,310

30,574,066

300

Prof & Tech Services

7,825,080

5,119,409

5,071,843

400

Purchased Property Services

1,721,733

1,925,447

1,258,025

500

Other Purchased Services

13,627,271

12,456,438

11,806,438

600

Supplies

2,369,031

3,199,022

3,221,757

700

Equipment

740,370

468,622

204,672

800

Other Objects

5,795,022

6,176,352

6,826,782

900

Other Uses of Funds

1,280,000

4,150,000

4,740,000

112,512,095

113,671,700

117,074,897

Total Expenditures

9

Expenditure Assumptions Contractual Obligations Account for approximately 88% of the budget • Salaries/Benefits • Operations including utilities, insurance and leases • Technology operational and educational renewals • Transportation • Debt Service

Strategic Plan • Year 1 - exploration • Year 2 - exploration/adoption • Year 3 - exploration/adoption

Analysis of existing programs and value-added Facility maintenance and building improvements 10

Expenditure Budget Development Expenditure Drivers: • Salaries

• Increased approximately 4.1% from the 2017-18 budget • $1.5 million increase in CEA salaries • $181,000 increase in Administrative salaries • BEC contract expires June 30, 2018; salaries reflect status quo

• PSERS

• Contribution rate increased from 32.57% to 33.43% (0.86%) • Net impact of approximately $1.2 million to budget

• Transportation

• Net reduction of $650,000 • Factoring cost savings from new contract and overall increase in IU Special Education transportation expenditures • Savings was reallocated to offset expenditures in other categories

Expenditure Variables: • Strategic Plan - Year 3 • Facility maintenance and building improvements • Special Education - IU Transportation and Placements

11

RECOMMENDED BUDGET WILL CONTINUE TO SUPPORT… …COLLABORATION FOR THE FUTURE OF OUR STUDENTS

What’s New for the 2018-19 Budget?? Expenditure increases are dominated by contractual salary increases and PSERS rate increase • 2017-18 budget addressed key stakeholders concerns regarding CSD climate and culture • Staffing and resources added for student wellness and culture

No request for additional staff unless cost neutral

• Budget Administrators requested over $2.5 million of additional staffing (includes salaries and benefits) • Current National School Climate calls for increased security • Staff • Building Improvements

Reduction in expenditures allocated for strategic plan initiatives Reallocated resources for Curriculum Development Reallocated resources to expand PBL to include 10th grade cohort 13

2016-17 Actual

2017-18 Budget

2018-19 Preliminary Budget

REVENUES Local

88,358,687

88,319,015

93,656,156

State

23,243,257

23,772,019

20,824,354

931,242

617,116

917,116

963,550

1,677,271

112,533,186

113,671,700

117,074,897

100 - Salary

50,100,819

51,259,100

53,371,314

200 - Benefits

29,052,769

28,917,310

30,574,066

300 - Prof/Tech Svcs

7,825,080

5,119,409

5,071,843

400 - Purchased Property Svcs

1,721,733

1,925,447

1,258,025

13,627,271

12,456,438

11,806,438

600 - Supplies

2,369,031

3,199,022

3,221,757

700 - Property

740,370

468,622

204,672

800 - Other Objects

5,795,022

6,176,352

6,826,782

900 - Other Financing Uses

1,280,000

4,150,000

4,740,000

112,512,095

113,671,700

14 117,074,897

Federal Fund Balance TOTAL REVENUES

-

EXPENDITURES

500 - Other Purchased Svcs

TOTAL EXPENDITURES

CSD Fund Balance CLASSIFICATION Unassigned Assigned: Building Improvements Committed: Budget Capital Projects Non-Spendable: Inventory Pre-paid Items TOTAL

Actual Ending Est. Ending Est. Ending June 30, 2016 June 30, 2017 June 30, 2018 6,752,711 8,748,158 7,070,887 4,795,447

1,111,193

1,111,193

874,743 4,400,000

963,550 6,000,000

1,677,271 6,000,000

100,130 764,196

100,130 764,196

100,130 764,196

17,687,227

17,687,227

16,723,677

Educational Excellence

VS.

C N A FIN

Y T I L I B A T S IAL

2018-19 PDE BUDGET TIMELINE DATE

ACTION

September 2017



PDE publishes 2018-19 Act 1 Index

December 2017

• •

Certify/File Sterling Act Tax Credit Data Residential homestead notification



Opt-out resolution or 2017-18 proposed preliminary budget available for public inspection

February 2018

• • •

Adopt 2017-18 Preliminary Budget Approve elected tax collector compensation Publish intent to apply for referendum exceptions

March 2018



File referendum exception request with PDE

May 2018

• • •

Notification of property tax relief allocation from PDE Appointment of tax collector Adopt 2017-18 Proposed Final Budget and available for public inspection

June 2018

• •

Publish intent to adopt 2017-18 Final Budget Adopt 2017-18 Final Budget

January 2018

2018-19 CSD BUDGET TIMELINE DATE

ACTION

September 2017



Compile budgetary data

October 2017 - December 2017

• • •

Adopt Opt-out Resolution or proceed with Preliminary Budget Compile budgetary data Certify/File Sterling Act Tax Credit Data

January 2018



Finalize 1st look budget or Preliminary Budget

February 2018



Present 1st look at budget at Financial Affairs Committee or Preliminary Budget Adoption

March 2018 - April 2018

• •

Update and Finalize budget Present budget updates at select Financial Affairs Committee meetings

• •

Present Proposed Final Budget at Financial Affairs Committee Adopt Proposed Final Budget at Legislative Meeting and available for public inspection

• • •

Present Final Budget at Financial Affairs Committee Publish intent to adopt 2017-18 Final Budget Adopt 2017-18 Final Budget at Legislative Meeting

May 2018

June 2018

NEXT STEPS… • Provide three (3) year comprehensive historical review of revenue and expenditures • Continue to work with Administration on finding reductions in building and or departmental budgets

19

2017-18 Budget - $ FUND BALANCE USED

963,550

2017-18 YTD - $ -

Variance $ 963,550

Variance %

Fiscal Year %

2016-17 %

-

66.67%

-

REVENUES Local

88,319,015

86,020,178

2,298,837

97.40%

97.72%

State

23,772,019

9,688,612

14,083,407

40.76%

48.95%

617,116

336,715

280,401

54.56%

69.38%

TOTAL REVENUES

112,708,150

96,045,505

16,662,645

85.22%

66.67%

-

TOTAL REVENUES/FUND BALANCE

113,671,700

96,045,505

17,626,195

84.49%

66.67%

88.13%

100 - Salary

51,259,100

29,711,218

21,547,882

57.96%

58.57%

200 - Benefits

28,917,310

17,491,187

11,426,123

60.49%

59.03%

300 – Prof/Tech Svcs

5,119,409

4,936,104

183,305

96.42%

89.03%

400- Purchased Property Svcs

1,925,447

1,176,801

748,646

61.12%

64.09%

12,456,438

7,318,286

5,138,152

58.75%

63.09%

600 - Supplies

3,199,022

2,656,794

542,228

83.05%

67.43%

700 - Property

468,622

324,576

144,046

69.26%

92.99%

800 - Other Objects

6,176,352

5,943,878

232,474

96.24%

142.85%

900 – Other Financing Uses

4,150,000

4,150,000

100.00%

85.59%

113,671,700

73,708,844

Federal

EXPENDITURES

500 – Other Purchased Svcs

TOTAL EXPENDITURES Note: Expenditure YTD figures include encumbrances

39,962,856

64.84%

66.67%

65.58%

2017-18 Budget - $ FUND BALANCE USED

963,550

2017-18 YTD - $ -

Variance $ 963,550

Variance %

Fiscal Year - %

2016-17 %

-

66.67%

-

REVENUES Local

88,319,015

86,020,178

2,298,837

97.40%

97.72%

State

23,772,019

9,688,612

14,083,407

40.76%

48.95%

617,116

336,715

280,401

54.56%

69.38%

TOTAL REVENUES

112,708,150

96,045,505

16,662,645

85.22%

66.67%

-

TOTAL REVENUES/FUND BALANCE

113,671,700

96,045,505

17,626,195

84.49%

66.67%

88.13%

80,176,410

47,202,405

32,974,005

58.87%

58.57%

Transportation

7,170,369

3,718,254

3,452,115

51.86%

49.15%

Tuition – Cyber/Charter School

1,573,259

960,455

612,804

61.05%

99.38%

Tuition - Other

3,080,282

1,789,951

1,290,331

58.11%

52.55%

10,326,352

10,093,878

232,474

97.75%

108.31%

1,281,932

1,191,927

90,005

92.98%

80.35%

10,063,096

8,751,974

1,311,122

86.97%

-

113,671,700

73,708,844

39,962,856

64.84%

Federal

EXPENDITURES Salaries/Benefits

Debt Service Equipment/Software Platforms Other TOTAL EXPENDITURES Note: Expenditure YTD figures include encumbrances

66.67%

65.58%