Budget Presentation Final Review, Taxes, & 5-Year Projection - - PowerPoint PPT Presentation

Budget Presentation

Final Review, Taxes, & 5-Year Projection

March 27th, 2017 6:00 P.M.

Meeting Agenda

• 2017-18 Budget Status
• Six Year Projections (to show w/o debt service)
• Uniform assumptions
• 2% tax increase
• 3% tax increase
• 0% tax increase
• PASBO Conference Update
• Berks Health Trust Update

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2017-18 Budget Summary

2017-18 Initial Budget 2017-18 Current Budget

Revenues 31,188,373 31,284,106 Expenditures 33,414,310 33,161,040 Revenues over Expenditures (2,225,937) (1,876,934) Beginning Fund Balance (Projected) 8,549,271 8,890,478 Ending Fund Balance 6,323,334 7,013,544

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2017-18 Operating Budget Summary

2017-18 Budget Revenues 31,284,106 Expenditures 31,675,440 Revenues over Expenditures (391,334)

• New Reductions/Additions
• State revenue based on

Governor’s budget

• $48k in basic ed. subsidy
• $19k in special ed. subsidy
• Unlikely that transportation

subsidy reduction will occur based on lack of interest from the legislature.

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Forecasted Revenue Assumptions

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• Local Revenue Increases (other than R/E taxes)
• 2% - interims, per capita, EIT, IDEA, rentals, donations, tuitions
• 1% - all others including transfer taxes, delinquents, interest, gate receipts
• State Revenue Increases
• 1% - basic education, special education, transportation, property tax rebate
• Social security and PSERS increased based on 50% of expenditure
• All others flat funded
• Federal Revenue Increases
• 1% for Title I and Title II
• Could change based on federal budget (elimination of Title II)
• All Access revenues removed

Forecasted Expenditure Assumptions

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• Salaries
• 3.5% - medical opt out (based on assumed increase in medical benefits)
• 2.8% - professional staff, LT subs
• 2.5% - admin, technical, clerical, maintenance, custodial
• 1% - co-curricular, coaches
• Includes reduction 1 of FTE per year
• Benefits
• 7% - medical and RX
• 2% - life insurance, LTD, vision, dental, tuition reimbursement
• Social security, PSERS, unemployment, and workers comp % of salaries
• Peak PSERS rate – 36.4% in 21-22
• Average rate – 35.17%

Forecasted Expenditure Assumptions

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• Professional Services
• 3% - regular and special education services
• 2% - business services, event/game official services
• 1% - other services
• Property Services
• 2% - repair and maintenance services
• 1% - lawn care, snow, trash, rentals
• Other Services
• 3% - tuitions (charter, private)
• 2% - transportation, insurance, advertising, BCTC

Forecasted Expenditure Assumptions

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• Supplies
• 3% - gasoline and diesel
• 2% - fuel oil
• 1% - natural gas, electric
• .5% - other supplies
• Equipment – no increase
• Includes $200k/year for construction project contingency
• Budgetary reserve – flat $200k per year
• Dues, Fees, Debt Service
• 2% - dues/fees
• Debt service based on existing payoff schedule for principal and interest

Specific Projection Assumptions

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• Three scenarios
• 2% R/E tax increase, 3% increase, or

0% increase

• Each scenario includes a .1% increase

for interims and assessment changes

• Adjustments to fund balance and

potential construction projects after debt is retired for each scenario

• Attempt to budget $1.5mm for projects

starting in 22-23

Construction Projects

Elementary Intermediate/Middle School High School

• Intercom, clock, and

phone upgrade

• Rubber gym floor

replacement

• Building envelope
• Windows
• Building envelope
• Replace hot water heaters
• Intercom/Clock upgrade
• Condensing boilers
• Auditorium renovations
• Stadium (lights and

replacement)

• Scoreboards
• Chiller replacement
• Air handler upgrades
• Phone upgrade
• Blacktop repair
• Grease trap

replacement

• Building envelope
• Soccer field lights
• Scoreboards

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Fund Balance

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• Use of fund balance questions
• Amount to draw down from

committed fund balance for PSERS employer rate increases?

• Categories and amounts of assigned

fund balance?

• Creation of a capital reserve fund to

move money for future capital expenditures?

• Change in allowable fund balance

amounts?

• Current 8% cap to unassigned
• Possible caps to total fund balance?

Fund Balance Designation Projected Y/E 16-17 Committed 1,663,000 Assigned 6,306,000 Unassigned 921,478

PASBO Conference Updates

• Property Tax Elimination
• Current count at almost 30 no-votes
• Other potential options
• Changes based on age and income level

for seniors

• State Budget
• Increases to basic and special ed.

appear solid

• Transportation subsidy decreases less

than likely

• Concerns from legislature
• Method of changes to formula – 2 years in

arrears

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Berks Health Trust Update

• Current not-to-exceed rate – 7.5%
• Budgeted 7%
• Expected final rate in May
• RX Request for Proposal
• Health trust awarded new Pharmacy Benefit Manager RFP to Express Scripts

(administered through Mercer)

• Potential $3.9mm in savings to the trust
• Stop loss insurance renewal
• Stop loss coverage insurance for high claims over $350k/year
• 12 claims in the consortium
• 67% increase in coverage with laser to 4 highest claimants
• Approx. 230% increase without laser

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Upcoming Meetings

• Upcoming meetings
• April 3, 2017 – Regular Board Meeting
• May 1, 2017 – Regular Board Meeting
• Approval of the proposed final budget
• Adjustments can still be made
• June 5, 2017 – Regular Board Meeting
• Approval of the final budget
• June 19, 2017 – Regular Board Meeting

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