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Budget Consultation Forum 2019-2020 Division Administration Office - - PowerPoint PPT Presentation

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Budget Consultation Forum 2019-2020 Division Administration Office J.L. Milne Boardroom 1031 6 th Street Brandon, MB March 4, 2019 7:00 p.m. https://www.bsd.ca/board/consultations/budget/Pages/2019-2020-Budget- Preparation.aspx 1

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Budget Consultation Forum

2019-2020

Division Administration Office – J.L. Milne Boardroom 1031 – 6th Street Brandon, MB March 4, 2019 – 7:00 p.m.

https://www.bsd.ca/board/consultations/budget/Pages/2019-2020-Budget- Preparation.aspx

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AGENDA

7:00 – 7:05 Welcome and Introduction

  • Dr. Linda Ross, Board Chairperson

7:05 – 7:30 2019-2020 Preliminary Budget Information

  • Mr. Kevan Sumner, Finance and Facilities Committee

Chairperson 7:30 – 8:00 Receive Public Feedback

  • Mr. Kevan Sumner, Finance and Facilities Committee

Chairperson (Moderator) 8:00 Closing Comments

  • Dr. Linda Ross, Board Chairperson

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  • Ward 1 City of Brandon - 8 Trustees
  • Ward 2 Rural Area – 1 Trustee
  • Total Staff Complement 1,200+
  • Total Enrollment 8,922 (Sept. 30, 2018)
  • Facilities
  • 22 School Buildings
  • 3 Additional Buildings
  • 1,115,036 sq. ft. building space
  • Transport 3,581 students
  • 45 School Buses
  • 13 Maintenance Vehicles

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Proposed 2019-2020 Budget Outline

  • 1. Budget Development Process
  • 2. Funding Announcement Summary
  • 3. Proposed 2019-2020 Operating Budget
  • 4. Budget Enhancements
  • 5. Special Requirement/Levy
  • 6. Next Steps

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1) Budget Development Process

  • Stakeholder meetings and budget preparation guidelines
  • Factors Impacting Budget Considerations
  • Comparison to the Manitoba Provincial Average and similar

Divisions

  • Estimating Enrollment
  • Developing Staff Budget
  • Accumulated Surplus and Reserves

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Finance and Facilities Committee

  • Stakeholder meetings
  • Establishment of budget preparation guidelines:

– Motion 48/2017 – Motion 69/2018

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That in preparing the 2018-2019 and future budgets, the budget process will be amended to require all requests from Trustees for budget additions or reductions be made to the Office of the Secretary-Treasurer by October 31st, and that individual Trustee requests shall then be integrated with Senior Administrative requests in the final list of preliminary budget and sustainability requests only after being reviewed and endorsed by an appropriate committee

  • f the Board. An exception to this process would be during an election year,

where the deadline for the budget requests would be December 15th of that year.

Motion 48/2017

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Motion 69/2018

That the following guidelines be initiated for the 2019-2020 Preliminary Budget Preparation: a) Inflationary increases be provided as advised by suppliers for non- controllable expenditures e.g.: employee benefits, insurance, fuel/propane for school buses, taxes and utilities; b) a 2.4% inflationary increase be provided for controllable services and supplies; c) A 2.4% inflationary increase on the school instructional supply budget; d) A 2.4% inflationary increase be provided for the Capital and Maintenance Budget; e) The 2019-2020 Budget provide for expected enrollment growth.

Establishing Guidelines for the 2019-2020 Preliminary Budget Preparation

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  • Implement a multi-year budget strategy to plan for future

sustainability and attempt to limit the school property tax impact on a typical home to the sum of inflationary pressures plus enrollment growth. Ability to achieve this goal is dependent upon provincial guidelines and funding support.

  • Continue to explore and develop the use of new and existing

learning spaces in Brandon School Division to support current and future programming, with an emphasis on safety, security and access.

  • To lobby the province for increased Tier II and Tier III support

given the large and increasing needs of the student population in Brandon School Division.

Finance and Facilities Governance Goals for 2018-2022

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Factors Impacting Budget Considerations

  • 2019-2020 Budget impact on the 2020 Special Levy
  • Enrollment Changes
  • Programs and infrastructure for increasing diversity of

student learning needs

  • Provincial legislation
  • Infrastructure and Support for Program Delivery
  • Collective Agreement Costs
  • Uncertainty of Funding
  • Effects of population growth on Facility Sustainability
  • Contingency Funds and Reserves

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Comparison to Provincial Average & Similar Divisions

2018-2019 FRAME BUDGET REPORT Provincial Average 2018-2019 Seven Oaks SD 2018-2019

  • St. James SD

2018-2019 Brandon SD 2018-2019 Brandon SD 2019-2020

Total Operating Expenses Related to Pupils 141,822,090 $ 107,407,529 $ 103,749,900 $ 105,345,000 $ K-12 F.T.E. Enrollment 11,233.0 8,351.5 8,594.0 8,673.5 Operating Fund Expenduiture/Pupil 13,284 $ 12,625 $ 12,861 $ 12,072 $ 12,146 $ **7th lowest in Province Pupil/Teacher Ratios - Regular Instruction 16.7 16.9 13.5 17.1 17.0

  • Educator

13.1 13.7 13.6 12.8 12.8 Divisional Administration Cost/Pupil 456 $ 378 $ 440 $ 378 $ 361 $ Special Levy Mill Rate 13.6 16.5 12.8 15.0 15.0 Assessment Per Resident Pupil 433,310 $ 327,972 $ 610,145 $ 373,941 $ 376,633 $

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Revenue By Source

Municipal 38.0% Provincial 60.3%

Federal 0.0% Other Divisions 0.4% First Nations 0.2% Private 0.8% Other 0.3%

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2019-2020 Revenue By Source Provincial Average Seven Oaks

  • St. James

BSD BSD Provincial 59.3% 66.9% 51.8% 60.5% 60.3% Municipal 33.8% 30.2% 44.8% 38.0% 38.0% Federal 0.2% 0.6% 0.0% 0.0% 0.0% Other Divisions 0.5% 0.9% 0.6% 0.4% 0.4% First Nations 4.1% 0.5% 0.2% 0.2% 0.2% Private 0.8% 0.9% 1.9% 0.8% 0.8% Other 0.2% 0.0% 0.7% 0.2% 0.3% 2018-2019

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Expense by Function

Regular Instruction 59.8% Student Support Services 21.0%

Community Education 0.3% Divisional Administration 3.0% Instructional & Other Support Services 3.2% Transportation of Pupils 2.5% Operations & Maintenance 8.4% Fiscal 1.7%

13 2019-2020 Expense by Function Provincial Average Seven Oaks

  • St. James

BSD BSD Regular Instruction 55.7% 59.0% 55.5% 59.8% 59.8% Student Support Services 18.6% 17.7% 22.2% 21.0% 21.0% Community Education 1.4% 2.0% 0.9% 0.4% 0.3% Divisional Administration 3.4% 2.9% 3.4% 3.1% 3.0% Instructional & Other Support Services 3.4% 4.1% 3.2% 3.2% 3.2% Transportation of Pupils 4.4% 2.6% 2.6% 2.5% 2.5% Operations & Maintenance 11.5% 9.9% 10.6% 8.4% 8.4% Fiscal 1.7% 1.8% 1.7% 1.7% 1.7% 2018-2019

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Expense by Object

Salaries & Employee Benefits 85.7%

Services 6.3% Supplies & Materials 6.1% Fiscal & Transfers 1.8%

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2019-2020 Expense by Function Provincial Average Seven Oaks

  • St. James

BSD BSD Salaries & Employee 83.1% 84.5% 82.3% 85.7% 85.7% Services 9.1% 7.0% 10.2% 6.4% 6.3% Supplies & Materials 6.1% 5.9% 5.4% 6.1% 6.1% Fiscal & Transfers 1.7% 2.6% 2.1% 1.8% 1.8% 2018-2019

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Enrollment

  • Increase of 117 students from September

2017 to September 2018.

  • For budgeting purposes, we are projecting a

1.3% (115 students) growth in enrollment.

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Enrollment

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Summary of Staff (FTE)

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Function

2018-2019 2019-2020 2018-2019 2019-2020 2018-2019 2019-2020

Regular Instruction 538.71 547.48 99.12 101.03 637.83 648.51 Student Support Services 142.43 140.83 247.80 258.70 390.23 399.53 Community Education and Services 0.75 0.75 3.00 3.00 3.75 3.75 Administration 2.00 2.00 24.15 23.15 26.15 25.15 Instructional & Other Services 16.25 16.13 7.64 7.64 23.89 23.77 Transportation

  • 43.46

43.46 43.46 43.46 Operations and Maintenance

  • 84.33

84.46 84.33 84.46 700.14 707.19 509.50 521.44 1,209.64 1,228.63

FTE = Full Time Equivalent

Teaching Support Staff Total

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Accumulated Surplus and Reserves

  • Accumulated surplus as of January 31, 2019

is $2,843,868.

  • This is 2.73% of the 2018-2019 Operating

Budget.

  • External Auditor recommends 5%
  • Manitoba Education mandates maximum 4%

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Accumulated Surplus

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Operating Fund Projected Accumulated Surplus Accumulated Surplus – July 1, 2018 $3,849,565 Less: Transfers from/(to) Capital Reserve Less: Designated Surplus (537,450) Less: Non-vested Sick Leave (468,247) Unallocated Accumulated Surplus as of January 31, 2019 $2,843,868 2018-2019 Operating Budget $104,279,300 % of Projected Unallocated Surplus on 2018-2019 Budget 2.73%

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Capital Reserves – Projected Balances

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2) Funding Announcement Summary

  • Increase of 0.5% or $6.6 million in Provincial Funding to public

schools for 2019-2020.

  • Increase in total funding for BSD of 1.0% or $550,576 over the

previous year.

  • The Province is continuing the phase out the Tax Incentive Grant

(TIG) funding and is in the second year of the six-year phase-out at 1/6 per year. The Brandon School Division (BSD) TIG funding for 2019-2020 is reduced by $308,002 to $1,232,009.

  • Cap on the General Support Grant (GSG) remains unchanged and is

based on December 31, 2018 payroll taxes.

  • Limit any increases to the Special Requirement to 2%

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3) Proposed 2019-2020 Operating Budget

The following Ministerial directions and guidelines have been used in developing the preliminary budget:

  • Provincial Guidelines for Bill 28 – The Public Services

Sustainability Act.

  • Reduction in the Tax Incentive Grant (TIG)
  • Limit any increases to the Special Requirement to two per cent

(2.0%).

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Proposed 2019-2020 Operating Budget

BUDGET 2018-2019 2019-2020 INCREASE BUDGET BUDGET (DECREASE) REVENUES Provincial Government 63,091,700 63,776,700 685,000 1.1% Federal Government 18,500 18,500

  • 0.0%

Municipal Government 39,581,200 40,192,600 611,400 1.5% Other School Divisions 386,300 457,400 71,100 18.4% First Nations 181,500 195,200 13,700 7.5% Private Organizations and Individuals 846,400 875,000 28,600 3.4% Other Sources 173,700 319,700 146,000 84.1% 104,279,300 105,835,100 1,555,800 1.5% EXPENDITURES Regular Instruction 62,362,000 63,282,100 920,100 1.5% Student Support Services 21,899,000 22,272,500 373,500 1.7% Community Education and Services 364,300 346,600 (17,700)

  • 4.9%

Divisional Administration 3,245,900 3,131,000 (114,900)

  • 3.5%

Instructional & Other Support Services 3,303,500 3,364,200 60,700 1.8% Transportation 2,579,100 2,653,300 74,200 2.9% Operations and Maintenance 8,691,600 8,937,300 245,700 2.8% Fiscal 1,795,900 1,808,100 12,200 0.7%

  • 104,241,300

105,795,100 1,553,800 1.5% Transfers To Capital 38,000 40,000 2,000 5.3% 104,279,300 105,835,100 1,555,800 1.5% NET SURPLUS (DEFICIT)

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4) Budget Enhancements

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  • Increase of 6.05 FTE teaching positions
  • Increase of 0.94 FTE support staff
  • An additional 10 FTE Educational Assistants
  • Maryland Park School Principal and Administrative

Assistant

  • Replace four (4) buses from the school bus capital

reserve.

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5) Special Requirement

  • Special Requirement is the amount required to be raised from

Municipalities during the Division's fiscal year. It represents the final source of revenue for the Board to fund budgeted expenditures.

  • For 2019-2020, the Minister directed School Divisions to limit

any increases to the Special Requirement to two per cent (2.0%).

  • The proposed 2019-2020 budget results in a 0.85% increase in

the Special Requirement

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Special Levy (Municipal Taxes)

  • Tax and budget increases/decreases in past years affect the 2019-

2020 operating budget.

  • 2018-2019 Budget committed an increase of $216,422 or 0.45% on

the 2019 Special Levy. The 0.45% mill rate increase is before factoring changes to property assessment, changes in revenue or expenditures.

  • 2019-2020 Special Requirement increase of $414,700
  • Budget decisions made this year will impact the 2020 Special Levy.

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Effect of the School Year Budget

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Property Taxes For Education

Historical property taxes based on a home in the Brandon School Division with a 2018 assessed value of $254,571.

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Year 2014 2015 2016 2017 2018 Assessed Value 225,000 $ 225,000 $ 251,325 $ 251,325 $ 254,571 $ Property Taxes for Education 1,569.78 $ 1,569.88 $ 1,639.56 $ 1,686.27 $ 1,723.85 $ Change $ 77.76 $ 0.10 $ 69.68 $ 46.71 $ 37.59 $ Change % 5.21% 0.006% 4.44% 2.85% 2.23% 5 Year Assessed Value Increase 29,571 $ 5 Year Total Education Tax Increase 231.83 $

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Education Property Tax on a Home Assessed at $254,571

2018 2019 $ Change % Change Budget - Special Requirement

48,712,200 $ 49,126,900 $ 414,700 $ 0.85%

Brandon School Division Tax Assessed Value*

254,571 $ 254,571 $

  • $

0.00%

Portioned Value @ 45%

114,557 114,557

Mill Rate

15.048 14.990 (0.058)

  • 0.39%

Total School Taxes

1,723.85 $ 1,717.18 $ (6.67) $

  • 0.39%

Annual (6.67) $ Monthly (0.56) $ "Typical" 1,200 Square Foot, 3-Bedroom, 2-Bath, 40 Year-Old Residential Property 2019-2020 Budget

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BSD 10 year budget comparison

K-12 Student Enrollment (FTE) 7,042.0 8,673.5 Total Operating Expenses Related to Pupils 63,334,000 $ 105,345,000 $ Operating Fund Expenditure / Pupil 8,994 $ 12,146 $ Total Staff Positions (FTE) 939.9 1,228.63 Revenue:

Provincial

60.5% 60.3%

Municipal

37.7% 38.0% Expenses:

Regular Instruction

58.2% 59.8%

Student Support Services

21.7% 21.1%

Community Education

0.2% 0.3%

Divisional Administration

2.9% 3.0%

Instructional & Other Support Services

2.8% 3.2%

Transportation of Pupils

2.8% 2.5%

Operations & Maintenance

9.6% 8.4%

Fiscal

1.7% 1.7%

Pupil/Teacher Ratio - Regular Instruction

18.3 17.0

Pupil/Teacher Ratio - Educator

13.9 12.8 2009-2010 2019-2020

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6) Next Steps

  • March 11, 2019 Board Meeting – Board Approves Budget
  • March 15, 2019 Special Levy to Municipalities

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Public Feedback

  • Mr. K. Sumner

Finance and Facilities Committee Chair (Moderator) Email your questions to info@bsd.ca

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Thank-you for coming!

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