2019-2020 School District Budget Development Discussion Brian D. - - PowerPoint PPT Presentation

2019-2020 School District Budget Development Discussion

Brian D. Russ, Superintendent Joanne M. George, Business Administrator Board of Education Meeting March 13, 2019

Budget Development

We must remember: This is about more than reductions and balancing a budget. This is about our Values & Vision and upholding the integrity of our commitment to provide excellent quality programs and services to our students.

Considerations for the Budget Process

• We are completely and unwaveringly committed to

serving the interests of our students.

• We are committed to exercising care and good judgment

in managing the resources with which we are entrusted.

• We are committed to conducting our business in an open,
• bjective, and professional manner.
• We are committed to constant improvement and

future-focused planning.

Budget Finance Committee

• 10/31/18

− Set future dates − Set future agenda items − Discussed 12/05/18 BOE Budget Presentation

• 11/26/18

− Discussed adding a column to the Finance Committee working document to reflect

the monthly BOE “Grid” report

− Discussed adding Revenue rows to the BOE monthly “Grid” report − Discussed future agenda items ØPrepare Reserve Documents – Postponed discussion ØPrepare costs for 2019-2020 new requests – Discussed this document − Discussed potential restorations – SRO, Social Worker, Equipment

Budget Finance Committee

• 01/02/19

− Reviewed and discussed various scenarios using Debt Service Reserve

funds to manage current and future Tax Levy Limit Calculations

− Discussed additional scenarios for managing the Tax Levy Limit Calculations − Discussed Establishing a Capital Reserve Fund to manage future Facility

Project needs

• 02/04/19 Agenda

− Reviewed and discussed an additional Tax Cap Projection − Reviewed Governor’s State Aid Projection − Reviewed Fiscal Stress Score − Project expense categories for 2019-20, 2020-21, 2021-22, 2022-23 − Reviewed Reserve Fund Accounts

Budget Finance Committee

• 02/25/19

− Additional Tax Cap Projection – Use of Debt Service & Pay down of BAN − Potential Propositions ØGeneral Fund Budget ØEstablishment of Technology Reserve ØEstablishment of Capital Project Reserve

• 03/11/19

ØRevised Revenue Budget ØCapital Markets Recent Sale of Bonds – results

• Future Finance Committee Dates

Ø04/08/19 Ø04/29/19

Prior Year Staffing Reductions

Previous Budgetary Reductions 3.0 FTE Administrator – Assistant Principal, Principal & Dir. of Instructional Technology 23 FTE K–12 General Education Teachers 2.0 FTE Non-Teaching Districtwide Staff Public Relations Representative 2.0 FTE Business Office Staff Reductions 1.0 FTE Maintenance Helper/Maintenance Mechanic 4.0 FTE Technician Positions 2.0 FTE Technology Integrator Positions

Multi- Year Budget Priorities 2019-20 through 2022-23

• Restoration of Social Worker
• SRO – School Resource Officer(s)
• Wellness & Athletic Initiatives

− Restoration of Modified Sports − Purchase a new utility vehicle − Volleyball – Girls Modified – Boys JV − Lacrosse – Modified Girls & Boys − Fitness Center Cardio Equipment − Fitness Center Strength Equipment – EAEF Grant $21,515 − Fitness Center Supervision − STA Sports Performance Contract − Budget Line item Restorations (Materials & Supplies, Contractual)

• Restoration of Technology Technician Position (s)

− 2.0 FTE Technician Positions - 1.0 FTE Started 2/4/2019, 1.0 FTE Starting 7/1/2019 − Restoration of Materials & Supplies and Contractual - $15,000 − Develop Disaster Recovery Plan and Equipment Purchases to support the plan

• Buildings & Grounds Initiatives

− Equipment Restorations − Truck Leases − $100,000 Capital outlay project (s) –Transfer from Buildings & Grounds − 1.0 FTE Maintenance Helper/Maintenance Mechanic − 1.0 FTE Clerical Position

Multi- Year Budget Priorities 2019-20 through 2022-23

• Elementary School Initiatives

− 1.0 FTE Position (Kindergarten) − Restoration of Special Area positions − 0.5 FTE Reading − K-4 STEAM Coordinator − 0.5 FTE Math AIS − 1.0 Literacy Coach − Increase to Materials & Supplies and Contractual Line Items

• Middle School Initiatives

− 1.0 FTE Position − Honors Experience Ø Materials & Supplies Ø Contractual Ø 0.2 FTE − LOTE Experience at 6th Grade − 5-8 STEAM Coordinator − 0.6 FTE AIS Reading − Academic Resource Center (ARC) − Increase to Materials & Supplies and Contractual Line Items

Multi- Year Budget Priorities 2019-20 through 2022-23

• High School Initiatives

− Continued Restoration of High School Electives Ø 0.4 FTE Art Ø 0.4 FTE Math Ø 0.4 FTE ELA Ø 6th Assignment Science Ø 6th Assignment Social Studies − Academic Resource Center (ARC) − 4.0 FTE - Return to an 8 period Schedule − Increase to Materials & Supplies and Contractual Line Items

Multi- Year Budget Priorities 2019-20 through 2022-23

• District Initiatives

− Continuation of Class Size Reductions − Restoration of Administrator(s) − Clerical Staff Restorations(s) − Chromebook Purchases − Building Level/Department Budget Restorations (Materials & Supplies, Contractual) − STEAM Initiatives Ø 1.0 FTE STEAM Teaching Position – High School Ø STEAM Materials & Supplies

• Continued Rebuilding of Financial Stability

−

Unappropriated Fund Balance increased to 4% − Increased to Reserve Funds Ø Technology Reserve Ø Capital Reserve

Multi-Year Budget Completions 2018-19 Budget Planning

Priority Completed during 2018-2019 Year Completed Estimated Cost

1.0 FTE Parkdale Classroom Teachers 2018-2019 $68,805 0.5 FTE Parkdale Math AIS 2018-2019 $34,403 0.2 FTE Parkdale Library Media Specialist 2018-2019 $15,237 0.2 FTE Parkdale Physical Education Teacher 2018-2019 $13,761 2.0 FTE Middle School Classroom Teachers 2018-2019 $137,610 0.5 FTE Middle School Business Classes 0.4 FTE - 2018-2019 $34,403 0.6 FTE Middle School Music Teacher 0.5 FTE - 2018-2019 $39,055 1.0 FTE Social Worker 2nd Semester 18-19 $34,100 High School Elective Additions Ongoing $18,000 0.6 FTE High School Physical Education Teacher 2018-2019 $41,283 Grounds Workers – From Part-time to Full-Time 0.5 FTE - 2018-2019 $18,593 Added Funding for Technology – Build Tech Reserve $150,000 - 2018-2019 $50,000 1.0 FTE Technology Position 2nd Semester 18-19 $17,500 Restore Modified Sports to Whole ½ -2018-2019 $10,000 Security Upgrades Raptor – 2018-2019 $20,000

2019-20 Proposed Budget Restorations

Priority Completed in 2019-2020 Estimated Cost

ATHLETICS Modified Sports Restored to Whole $10,000 Volleyball Girls Modified & Boys JV $7,466 Utility Vehicle $11,000 Restoration of Materials & Supplies $5,000 TECHNOLOGY 1.0 FTE Technology Department Position $38,000 BUILDINGS & GROUNDS Capital Outlay Project – Middle School Replacement of Window Balances Reallocated $100,000 Tractor Replacement Reallocated $11,300 Equipment Restorations Reallocated $28,000 Building Condition Survey $40,000 PARKDALE Restoration of Materials & Supplies $2,500 1.0 FTE Elementary Teacher $68,805

2019-20 Proposed Budget Restorations

Priority Completed in 2019-2020 Estimated Cost MIDDLE SCHOOL Six - 6th Assignments $41,304 Academic Resource Center - ARC $23,792 STEAM Materials & Supplies $5,000 Restoration of Materials & Supplies $3,500 HIGH SCHOOL 1.0 FTE Technology Education Teacher $46,067 0.4 FTE Art Position Restoration $31,090 0.4 FTE Math Position Restoration $17,314 0.6 FTE ELA Position Restoration (0.4 FTE HS 0.2 FTE MS) $27,367 Three 6th Assignments – Science, Social Studies, Art $20,652 Academic Resource Center - ARC $22,610 Restoration of Materials & Supplies $5,000

Parkdale – Projected 2019-2020 Class Sizes

Grade Level Estimated Class Size Kindergarten 22 First Grade 20.6 Second Grade 22.3 Third Grade 20.5 Fourth Grade 22.8

“East Aurora Schools Experience

$1.7 million surplus”

Reserve/Fund Balance 2016 - 17 2017 - 18

Employee Benefit Accrued Liability $182,784 $258,458 Retirement ERS $5,253 $5,639 Liability $41,608 $41,636 Capital $1,133 $151,134 Repair $393,355 $393,605 Tax Cert $0.00 $270,000 Appropriated Fund Balance $0.00 $418,148 Unappropriated Fund Balance $503,218 $1,265,981 TOTAL $,1,127,351 $2,804,601

• Total Increase of $1,677,250
• Creation of Tax Cert Reserve - $208,000 towards

Fisher Price Tax Refund

• $150,000 Capital Technology Reserve
• $75,674 to rebuild EBLAR Reserve
• $418,148 Appropriated to the 2018-19 Budget
• Unappropriated Fund Balance at 3.69% from 1.52%
• EAUFSD deemed Most Fiscally Stressed in State of

New York 2016-17 − Results of 2017-18 is a good first step in regaining fiscal stability − Important to remember – we are not out of the woods yet

The East Aurora Bee Newspaper -Thursday, October 25, 2018

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

East Aurora Union Free School Total Fund Balance History Fiscal Year Fund Balance 2008-09 $5,051,663 2009-10 $5,905,609 2010-11 $5,497,303 2011-12 $5,802,860 2012-13 $5,663,694 2013-14 $6,399,017 2014-15 $5,094,675 2015-16 $4,536,455 2016-17 $2,723,928 2017-18 $3,691,094

Most Fiscally Stressed In the State

HISTORICAL TOTAL FUND BALANCE ANALYSIS Unappropriated + Appropriated + Reserve Funds

Most Fiscally Stressed In the State

* *

East Aurora Union Free School Fiscal Stress Score

“East Aurora’s score fell 45 percentage points and from significant stress to susceptible to stress in the span of one year. In past years, it had experienced

• perating deficits, had low liquidity and low fund balances; in SY 2017-2018, the

District reported a healthier fund balance and better cash position. (See Figure 5.)”

December 29, 2017 December 28, 2018

Reserve Fund Planning

Title Actual 6/30/14 Actual 6/30/16 Actual 6/30/18 Projected 18-19 Projected 19-20 Projected 20-21 Projected 21-22 Projected 22-23

Encumbrances 127,509 197,904 EBLAR 922,933 602,049 258,458 258,458 258,458 258,458 258,458 258,458 ERS - Retirement 135,373 4,838 5,639 5,639 55,639 80,639 105,639 130,639 Liability 44,052 41,592 41,636 41,636 41,636 41,636 41,636 41,636 Insurance 193,480 Tax Certiorari 270,000 62,000 62,000 62,000 62,000 62,000 Capital 2004 1,131 1,133 151,134 Technology 2019 150,000 200,000 250,000 300,000 350,000 Capital 2019 151,134 251,134 401,134 551,134 701,134 Repair 392,835 393,202 393,606 393,606 393,606 393,606 393,606 393,606 Debt Service 2,965,427 2,061,211 886,492 886,492 Sub Total 4,782,740 3,301,929 2,006,965 1,948,965 1,262,473 1,487,473 1,712,473 1,937,473 Unappropriated FB 636,277 834,516 1,265,981 1,453,274 1,505,932 1,539,345 1,568,000 1,598,000 Appropriated FB 980,000 400,000 418,148 868,148 418,148 418,148 418,148 418,148 TOTAL 6,399,017 4,536,445 3,691,094 4,270,387 3,186,553 3,444,966 3,698,621 3,953,621

Tax Levy Limit Calculation Long-Range Budget Planning

15-16 Actual 16-17 Actual 17-18 Actual 18-19 Actual 19-20 Projected 20-21 Projected

21-22 Projected 22-23 Projected 23-24 Projected 2.56% 0.96% 6.90% 5.49% 2.74% 7.23% 1.76% 1.94% 1.78%

2018-2019 Budget Planning Forecasted as:

15-16 Actual 16-17 Actual 17-18 Actual 18-19 Actual 19-20 Actual 20-21 Projected 21-22 Projected 22-23 Projected 23-24 Projected 2.56% 0.96% 6.90% 5.49% 4.45% 4.75% 2.15% 2.18% 2.03%

2019-2020 Budget Planning using $450,000 Appropriated Fund Balance Forecasted as: Impact to a $100,000 Assessed Value Home - $190

Tax Levy Limit Calculation Long-Range Budget Planning

How Did We Get Here?

• Parkdale Capital Improvement Project from 2009

− Relied on Debt Service Reserve until 2015 to offset local share

• Current Capital Project $23,550,000 Authorization

− Assumes a July 2019 Serial Bond Lock-In − Assumes Pre-Payment of $450,000 on BAN and; − The use of $886,491 Debt Service Reserve to Pre-pay BAN Ø Results in less of a local share in future Tax Levy Limit Calculations Ø Resulting in a more stable Tax Levy Limit in the Future

Proposed 2019-2020 Expenditure Budget

Expense Category 2018-19 Adopted 2019-20 Projected Year-Year $ Change Year-Year % Change Salaries $14,387,082 $15,643,807 $1,256,725 8.74% Fringe Benefits $6,701,183 $6,258,618 $(442,565)

• 6.60%

Equipment $57,000 $96,000 $39,000 68.42% Supplies $606,080 $622,630 $16,550 2.73% Contractual $2,649,125 $2,368,784 $(280,341)

• 10.58%

State Aided/Tuition $581,573 $639,073 $57,500 9.89% BOCES $4,791,210 $4,796,050 $4,840 0.10% Transportation $1,901,798 $1,953,084 $51,286 2.70% Sub Total $31,675,051 $32,378,046 $702,995 2.22% Debt Service/Interfund $2,656,861 $3,953,808 $1,296,947 48.82% TOTAL $34,331,912 $36,331,854 $1,999,942 5.83%

Proposed 2019-2020 Revenue Budget

Revenue Category 2018-19 Adopted 2019-20 Projected Dollar Change Percent Change Property Tax Items $21,615,127 $22,574,452 $959,325 4.44% State Aid less Building Aid $7,559,363 $7,598,983 $39,620 0.52% State Aid – Building Aid $2,062,774 $2,711,771 $648,997 31.46% Sales Tax $2,000,000 $2,000,000 $0 0.00% Miscellaneous Revenue $468,500 $578,500 $110,000 23.48%% Appropriated Reserves $208,000 $0 $(208,000)

• 100.00%

Appropriated Fund Balance $418,148 $868,148 $450,000 107.62% TOTAL $34,331,912 $36,331,854 $1,860,658 5.83%

Re-Cap of 2019-20 Proposed Budget

Scenarios for the Proposed Budget - May 21 ,2019 $450K Appropriated Fund Balance Current Budget 2018-2019 $34,331,912 Increase in Tentative Budget $1,999,942 Total Proposed Budget May 21, 2019 $36,331,854 Percent Increase in Tentative Budget 5.83% Projected Tax Levy Increase 4.45% Estimated Approximate Tax Impact $100,000 Assessed Value Home $190

The 2019-20 Proposed Budget is Tax Cap Compliant

Proposition #1 - Budget

Shall the following resolution be adopted? RESOLVED, that the budget for the East Aurora Union Free School District (the “District”) for the fiscal year commencing July 1, 2019 and ending June 30, 2020, as presented by the Board of Education of the District (the “Board”) in the amount of $xx,xxx,xxx, is hereby approved and adopted, and the required funds appropriated, and the necessary real property taxes required shall be levied on the taxable property in the District to be collected as required by law.

Proposed Proposition #2 Establishment of a Technology Reserve Fund

Shall the following resolution be adopted? RESOLVED, that the Board of Education (the “Board”) of the East Aurora Union Free School District (the “District” is hereby authorized to establish a technology reserve fund pursuant to Section 3651 of the Education Law of the State of New York (the “Fund”); that the Fund shall be known as the “Technology Reserve Fund, 2019” of the District; that the Fund shall be established for the purpose of financing, in whole

• r in part, (a) the acquisition, installation, improvement, expansion or upgrading of technology related

equipment, machinery, systems or apparatus (collectively, “Technology Assets”) and (b) the cost of renovating, reconstructing, altering, upgrading, furnishing and equipping various District buildings, facilities and sites to better accommodate the use of and/or instruction in such Technology Assets; that the ultimate amount of such Fund shall not be greater than $x,xxx,xxx (plus interest earned thereon); that the probable term of such Fund shall be not longer than ten (10) years; and that the permissible sources from which the Board is authorized to appropriate monies to such Fund from time to time shall be (a) unappropriated fund balance of the District, (b) State aid received as reimbursement for expenditures by the District in connection with District technology (whether or not such expenditures were financed in whole or in part from the Fund), (c) the proceeds from the sale of unneeded District real or personal property and (d) such other sources as the Board or the voters of the District may direct from time to time.

Proposed Proposition #3

Establishment of a Capital Improvements Reserve Fund

Shall the following resolution be adopted? RESOLVED, that the Board of Education (the “Board”) of the East Aurora Union Free School District (the “District”) is hereby authorized (1) to establish a capital improvements reserve fund pursuant to Section 3651 of the Education Law of the State of New York (the “Fund”); that the Fund shall be known as “Capital Improvements Reserve Fund 2019” of the District; that the Fund shall be established for the purpose of financing, in whole or in part, the acquisition, construction, reconstruction, expansion, renovation, alteration and improvement of buildings, facilities, sites and real property by the District, or the District’s share of the cost of any capital improvements project undertaken by a Board of Cooperative Educational Services (“BOCES”) of which the District is or may be a component district, including, in all cases, the acquisition of necessary furnishings, equipment, machinery and apparatus; that the ultimate amount of such Fund shall be not greater than $XX,XXX,XXX (plus interest earned thereon); that the probable term of such Fund shall be not longer than ten (10) years; and the permissible sources from which the Board is authorized to appropriate monies to such Fund from time to time shall be (a) unappropriated fund balance of the District, (b) State aid received as reimbursement for expenditures by the District in connection with District capital improvements (whether or not such improvements were financed in whole or in part from the Fund), (c) the proceeds from the sale of unneeded District real or personal property and (d) such other sources as the Board or the voters of the District may direct from time to time; and (2) to transfer into the Fund the modest remaining balance (which stood at $1,133.85 as of February 6, 2019) from the District’s existing Capital Reserve Fund that was established in 2004 (and amended in 2005), and then to terminate such older fund.

Budget Development Calendar

December 5, 2018 Preliminary Budget Presentation December 9, 2018 Budget Workshop January 9, 2019 Budget Workshop February 13, 2019 Budget Workshop March 1, 2019 Submit calculation for tax levy limit March 6, 2019 Board Meeting - Budget Workshop March 13, 2019 Community Budget Forum March 20, 2019 Board Meeting - Budget Workshop April 3, 2019 Budget Workshop April 17, 2019 Adoption of School District Budget & Property Tax Report Card April 18, 2019 Submit Property Tax Report Card April 27, 2019 Budget Document Available May 8, 2019 Hold Hearing on Proposed 2019-2020 Budget May 14, 2019 Mail Out Budget Notice May 21, 2019 Annual Budget Vote

Discussion

• Board of Education Priorities
• Board of Education Direction on Budget Development