proposed preliminary 19-20 presentation - new hope-solebury … · 2019-01-03 · sy 2019‐2020...
TRANSCRIPT
![Page 1: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/1.jpg)
PreliminaryBudgetSY2019‐2020
NewHope‐SoleburySchoolDistrict
![Page 2: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/2.jpg)
2019‐2020Preliminary
BudgetPresentation
• BudgetGoals• SchoolDistrictBudgetBasics• 2019‐2020BudgetProcess• 2019‐2020BudgetHighlights• BudgetTimeline
![Page 3: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/3.jpg)
Offerthebestqualityeducationpossibleforourcommunity’schildrenOffer
IncreasestudentachievementandgrowthIncrease
ProvidecomprehensiveservicestostudentsProvide
AligntoclasssizeguidelinesAlign
EncourageprofessionaldevelopmentandprofessionalgrowthEncourage
DevelopashortandlongtermplanforcapitalprojectsDevelop
SY2019‐2020
BudgetaryGoals
![Page 4: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/4.jpg)
Act1of2006
• Establishes a set index by which property taxes cannot be raised beyond• 2019 – 2020 index is set at 2.3%
• Districts can apply for exceptions to increase property taxes beyond the index• Increases in Retirement, Special Education• Fund Balance below required threshold
• Budget approval can take 1 of 2 paths• Adopt a resolution to remain within the Act 1 Index
• Adopt a resolution authorizing proposed preliminary budget display and advertising
![Page 5: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/5.jpg)
Act1of2006Recommendation
• Adopt a resolution authorizing proposed preliminary budget display and advertising
• Apply for exceptions allowing for a tax increase up to 2.75% (estimate)
• Review, Refine and Adjust until final form in June• This path does not set a final property tax rate – just the basis for approval of exceptions
• Allows for the most flexibility and opportunity
![Page 6: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/6.jpg)
FundBalance
• Fund Balance – Difference between assets and liabilities• Equate it to your savings account• Unsustainable to pay your mortgage with savings – eventually run out of money
• Fund Balance should be used strategically, not to pay for recurring expenses.• Pre‐planned purposes, one‐time expenditures, unexpected items
• Not – Increases in salaries and benefits• Fund Balance is also essential for cash flow purposes.
![Page 7: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/7.jpg)
2019‐2020BudgetProcess
• October2018• BeganbudgetdiscussionswithLeadershipTeam
• NeedsBasedbudgetphilosophy.
• November2018• Budgetsreviewedinternallywithbuilding/departmentowners
• December2018• Afirstlookwaspresentedtothefinancecommittee
• December2018• Boardapprovaltomoveforwardwithadvertisingpreliminarybudgetnoticeforpublicinspection.
![Page 8: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/8.jpg)
• SY2011‐2012toSY2015‐2016• Totalexpenditureincreaseof20%or4%peryear
• TaxRateincreaseof8.8%or1.76%peryear
• SY2016‐2017toSY2018‐2019• Totalexpenditureincreaseof3.29%or1.10%peryear
• SY2019‐2020• Bringtheseincreasesbackinline.• Ideallyexpenditureincreaseshouldbebelowtaxrateincreaseaspropertytaxesareonlyonerevenuelineitemmakingup70%ofrevenue.
BudgetHistory
![Page 9: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/9.jpg)
PreliminaryBudgetHighlightsBudgetaryAreas 2018‐2019 2019‐2020 Change
Expenditures 41,054,823 42,123,332 2.60%
Revenues 41,054,823 42,029,140 2.37%
UseofFundBalance 0 94,192
EndingUncommittedFundBalance
3,268,811 3,174,619
FundBalanceasa%ofExpenditures
7.96% 7.54%
![Page 10: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/10.jpg)
SY2019‐2020Revenues
RevenueComparison– Increaseof$975,000 TaxIncrease– 2.3%generates$745,000innewrevenue
ReferendumExceptionsgenerateanadditionalestimatedamountof$134,000(2.75%taxincrease) OtherLocal– Increaseof$50,000forinterestearnings StateRevenue– Increaseof$197,000
EducationFunding– Flatto17‐18finalPDEbudget– Increaseof$20,000 RetirementandSocialSecuritySubsidy– Increaseof$165,000
FederalRevenue– Decreaseof$150,000 StillworkingonusageofSBAPfunds– Equaloffsetofrevenuesandexpenses– Noimpacttobudget
RevenueType2017‐2018Actual
2018‐2019Budget
2019‐2020Preliminary Change
%ofTotalRevenue
6000Local 34,634,549 34,191,554 35,121,128 929,574 84%7000State 6,365,485 6,489,370 6,686,063 196,693 16%8000Federal 86,906 373,899 221,950 (151,950) 1%Total 41,086,940 41,054,823 42,029,140 974,317
![Page 11: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/11.jpg)
SY2019‐2020Preliminaryvs18‐19FinalBudgetSummaryofChanges– SalaryandBenefits
ExpenditureReduction/(Increase)
Increase(Decrease)
Description
Salary 390,000 NHSEAincreasespercontract– July1,2017 toJune30,2021SupportStaffincreasespercontract– July1,2018toJune30, 2022Act93increasespercontract– July1,2018toJune30,2023Nochangestostaffinginthepreliminaryversionofthebudget
Medical/Rx 105,000 NHSDparticipatesintheBucksandMontgomeryHealth Carebenefits consortiumwith11otherschooldistricts.Firstlookofbenefitsrates– 7%increase
Dental 20,000 DentalratesarecompletedinApril– 10%placeholder
PSERS 300,000 PSERSrateiscertified at34.29%andtheprojectionwas34.69%.Current is33.43%.PSERSexpensefor2018‐2019isestimatedtobe$6.4Mor15%oftotaloperatingbudget
![Page 12: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/12.jpg)
• MedicalRenewalrateshavebeentrendingpositively• Renewalrateaveragelast3years–2.75%
• Includesmedicalandprescription• Firstlookratestendtotrendhigherthanthefinalrates:• 21monthsoftrend– 8%trendrate• Finallookwillhavemoreactualdata
• Finalrates‐ April18th.• PlanCostsforMedical/Prescription
• SinglePlanCost– $8,750• FamilyPlanCost‐ $25,500• Premiumsharerangesfrom10%‐13.5%
BucksandMontgomeryHealthCareConsortium
![Page 13: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/13.jpg)
PSERSImpact
![Page 14: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/14.jpg)
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23
PSERS ‐ Employer Costs
Employer Cost Net of State Reimbursement
![Page 15: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/15.jpg)
SY2019‐2020Preliminaryvs18‐19FinalSummaryofChanges– OtherFunctionsExpenditureReduction/
(Increase)Increase(Decrease)
Description
Electricity (60,000) Consortium Pricing– Ratereductionfor2019‐2020Ratefor19‐20is.072perkWhdownfrom.083perkWh
1:1ProgramDevicePurchase 150,000 300,000 budgetedforreplacementofHS/MS1:1devices.150,000 in2018‐19budgettotransfertoatechnologycommittedfundforthepurchasein19‐20.
SpecialEducationCosts 100,000 BCIU– Increaseof$200,000forstudentplacementsOutofDistrictTuition– Reductionof$100,000
CharterSchoolTuition 40,000 1additionalcharterschoolstudent– SpecialEducation
Transportation 0 Contract endsJune30,2018Increaseincludedfornewagreement– reductionof1busfromcurrentbudgetimplementedthisyear.
CapitalImprovement Placeholder 0 2018‐2019 budgetis$243,000andthepreliminarybudgetincludesthesameamountforpotentialcapitalprojectneeds.
BudgetaryReserve 0 100,000forgeneralbudgetaryunknownitems50,000fordonations
![Page 16: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/16.jpg)
![Page 17: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/17.jpg)
2019‐2020PreliminaryBudgetScenarios19‐20 20‐21 21‐22 22‐23
Beginning Fund Balance 5,728,811 4,806,687 3,602,332 1,833,971
Total Revenue ‐ 0.00% Tax Increase 41,201,209 41,948,079 42,709,147 43,511,652 Total Expenditures 42,123,332 43,152,434 44,477,509 45,600,963 Surplus / (Deficit) (922,124) (1,204,355) (1,768,361) (2,089,311)
Ending Fund Balance 4,806,687 3,602,332 1,833,971 (255,340)
19‐20 20‐21 21‐22 22‐23Beginning Fund Balance 5,728,811 5,499,133 5,001,072 3,953,131
Total Revenue ‐ 2.30% Tax Increase 41,893,654 42,654,374 43,429,568 44,246,481 Total Expenditures 42,123,332 43,152,434 44,477,509 45,600,963 Surplus / (Deficit) (229,678) (498,061) (1,047,941) (1,354,482)
Ending Fund Balance 5,499,133 5,001,072 3,953,131 2,598,650
19‐20 20‐21 21‐22 22‐23Beginning Fund Balance 5,728,811 5,634,619 5,274,754 4,367,772
Total Revenue ‐ 2.75% Tax Increase 42,029,140 42,792,569 43,570,527 44,390,260 Total Expenditures 42,123,332 43,152,434 44,477,509 45,600,963 Surplus / (Deficit) (94,192) (359,865) (906,981) (1,210,703)
Ending Fund Balance 5,634,619 5,274,754 4,367,772 3,157,069
Scenario 1 ‐ 0.00% Tax Increase
Scenario 2 ‐ 2.30% Tax Increase ‐ Act 1
Scenario 3 ‐ 2.75% Tax Increase ‐ Act 1 plus Exceptions
![Page 18: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/18.jpg)
33,000,000
35,000,000
37,000,000
39,000,000
41,000,000
43,000,000
45,000,000
47,000,000
12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21 21‐22 22‐23
Expense to Revenue Gap continues to Trend Apart
Revenue Current Expense Current
![Page 19: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/19.jpg)
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fund Balance Projections
Final 18‐19 Prelim ‐ 19‐20
![Page 20: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/20.jpg)
NewHope‐Solebury MillageHistoryFiscalYear TaxRate Change AverageTax
BillAverageIncrease
%Increase Act1Index
2009/2010 79.84 3.14 4,316 170 4.09% 4.10%
2010/2011 82.15 2.31 4,441 125 2.90% 2.90%
2011/2012 83.30 1.15 4,503 62 1.39% 1.40%
2012/2013 84.72 1.42 4,579 76 1.70% 1.70%
2013/2014 86.16 1.44 4,657 78 1.70% 1.70%
2014/2015 87.96 1.81 4,755 98 2.10% 2.10%
2015/2016 89.64 1.67 4,845 90 1.90% 1.90%
2016/2017 93.94 4.30 5,078 233 4.80% 2.40%
2017/2018 97.69 3.76 5,279 201 4.00% 2.50%
2018/2019 100.04 2.34 5,420 141 2.40% 2.40%
2019/2020 102.79 2.75 5,569 149 2.75%* 2.30%
*Final tax increase is not approved until the final budget in May/June
![Page 21: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/21.jpg)
BudgetaryUnknowns
• Staffing/Enrollment• State/FederalRevenues• MedicalBenefitsrate• MBITenrollment• MBITCapitalProjectsFinancing• CharterSchoolEnrollments• TransportationContract
![Page 22: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/22.jpg)
Summary
• FinancialPositionofthedistrictisstable• RecommendingapprovalofthisPreliminaryBudgettobeputonpublicdisplaytoapproveatJanuaryBoardmeeting
• Applyforreferendumexceptionsforflexibility• Thisisnotafinalbudgetandyouarenotsettingataxratetonight.• Thisisthefirststepalonga6monthprocesstotheadoptionofafinalbudget.
• Thispresentationonlyincludesthebudgethighlights• Supplementaldataandreportsareincludedinthebudgetpacket• IncludingformPDE‐2028whichistheofficialbudgetdocumentsubmittedtoPDE
![Page 23: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/23.jpg)
Timeline
• December 20 – Approval to display and advertise preliminary budget.
• January Board Meeting• Approve Preliminary Budget• Authorize the District to file for referendum exceptions
• February – April/May• District continues to review and update budget and provides monthly updates at the Finance Committee meetings.
• May Board –Proposed Final Budget Adoption Resolution• Authorize Proposed Final Budget Advertising and Public Inspection
• June Board – Final Budget Adoption Resolutions
![Page 24: Proposed Preliminary 19-20 Presentation - New Hope-Solebury … · 2019-01-03 · SY 2019‐2020 Preliminary vs 18‐19 Final Budget Summary of Changes –Salary and Benefits Expenditure](https://reader036.vdocuments.mx/reader036/viewer/2022081406/5f1056747e708231d4489cf5/html5/thumbnails/24.jpg)
QUESTIONS?