FINANCIAL AFFAIRS COMMITTEE MEETING January 7, 2020 Cheltenham - - PowerPoint PPT Presentation

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FINANCIAL AFFAIRS COMMITTEE MEETING January 7, 2020 Cheltenham - - PowerPoint PPT Presentation

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FINANCIAL AFFAIRS COMMITTEE MEETING January 7, 2020 Cheltenham Mission Statement Drawing on its cultural richness, creativity, and tradition of scholastic excellence, School District the Cheltenham School District strives to nurture each

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FINANCIAL AFFAIRS COMMITTEE MEETING

January 7, 2020

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Cheltenham School District Mission & Vision Statements

Mission Statement Drawing on its cultural richness, creativity, and tradition of scholastic excellence, the Cheltenham School District strives to nurture each child through a wealth of academic endeavors and community partnerships that provide the skills and vision needed to lead a productive and meaningful life beyond our classroom walls. Vision Statement With a clear connection between the classroom and the world, the Cheltenham School District will strive for excellence by: 1. inspiring our students to develop principled and knowledgeable responses to the local, national, and global challenges of the 21st century; 2. actively engaging parents in their children’s intellectual, social, and moral education; 3. encouraging faculty and staff to continually broaden the web of connections between their academic disciplines and the world on which they depend; 4. stimulating dynamic leadership of building and district administrators; and 5. creating partnerships with community individuals, institutions,

  • rganizations, and businesses that model real-world connections for all

students.

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2019/ 2019/20 20 Cost t Sav avings ngs

üAttritional savings as of December 31, 2019

  • Salaries - $337,249
  • Benefits - $168,454
  • $190,170 of this amount is a one time savings

üCopier Lease renewal - $12,000 üCopier quota implementation - savings unknown at this time üCHS 1:1 Chromebook lease renewal - $26,000 ü2019 Debt Refinancing Plan - $323,891 - one time savings* üPreliminary MCIU Transportation Costs - $200,000

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2019/ 2019/20 20 Unan Unanti ticipat pated d Expe pendi nditur tures

Currently tracking major budgeted expenditures:

üTransportation üSpecial Education üStudent Services As of December 31, 2019, Transportation expenditures are projecting slightly above budget by $50,150 due to the addition of 1 non-public van

  • Preliminary MCIU transportation costs (2018-19

expenditures impacting the 2019-20 budget) are currently $200,000 less than prior year; MCIU administrative overhead has not been released to date

  • Net savings - 149,850
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2019/ 2019/20 20 Unan Unanti ticipat pated d Expe pendi nditur tures

Currently tracking major budgeted expenditures:

üTransportation üSpecial Education üStudent Services As of December 31, 2019, Special Education has utilized 2 additional Lakeside slots. Based on the approved Lakeside contract, 10 were budgeted of which 6 were allocated for Special Education and 4 for General Education. 2 of the 4 slots will be converted into Special Education slots. Cost impact = $9,200 Funds will be transferred from within the Special Education budget to absorb the cost.

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2019-20 Budget - $ 2019-20 YTD - $ 2019-20 Encumb Variance - $ Variance - % Fiscal Year - % Projection Year-End REVENUES Local 93,724,350 88,166,519 5,557,831 94.07% 93,724,350 State 25,097,232 8,764,745 16,332,487 34.92% 25,097,232 Federal 735,042 10,223 724,819 1.39% 735,042 Fund Balance 2,733,728

  • 2,733,728
  • 2,663,149

TOTAL REVENUES and FUND BALANCE 122,290,352 96,941,487 25,348,865 79.27% 50.00% 122,219,773 EXPENDITURES 100 - Salary 51,819,415 21,495,957

  • 30,323,458

41.48% 51,482,166 200 - Benefits 31,099,303 13,021,788

  • 18,077,515

41.87% 31,910,849* 300 – Prof/Tech Svcs 7,790,352 3,657,005 1,821,670 2,311,677 70.33% 7,790,352 400- Purchased Property Svcs 1,450,432 713,450 189,893 547,089 62.28% 1,410,000* 500 – Other Purchased Svcs 14,490,290 4,195,279 1,706,176 8,588,835 40.73% 14,293,998* 600 - Supplies 3,768,152 1,799,629 269,978 1,698,545 54.92% 3,760,000 700 - Property 168,706 86,467 47,715 34,524 79.54% 168,706 800 - Other Objects 5,352,027 3,911,663 8,948 1,431,416 73.80% 5,352,027 900 – Other Financing Uses 6,351,675 1,870,000

  • 4,481,675

29.44% 6,027,784* TOTAL EXPENDITURES 122,290,352 50,751,238 4,044,380 67,494,734 44.81% 50.00% 122,219,773

Projections: * Indicates where cost savings have been applied; series 200 - Benefits reflects not applying the one time cost savings of premium holiday at $980,000

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2019-20 Budget - $ 2019-20 YTD - $ 2019-20 Encumb Variance - $ Variance - % Fiscal Year - % Projection Year-End REVENUES Local 93,724,350 88,166,519 5,557,831 94.07% 93,724,350 State 25,097,232 8,764,745 16,332,487 34.92% 25,097,232 Federal 735,042 10,223 724,819 1.39% 735,042 Fund Balance 2,733,728

  • 2,733,728
  • 2,663,149

TOTAL REVENUES and FUND BALANCE 122,290,352 96,941,487 25,348,865 79.27% 50.00% 122,219,773 EXPENDITURES Salaries/Benefits 82,918,718 34,517,745

  • 48,400,973

41.63% 83,393,015* Transportation 7,949,850 1,636,282 204,295 6,109,273 23.15% 7,800,000* Tuition – Cyber/Charter School 1,160,000 422,456 622,605 114,939 90.09% 1,113,558 Tuition - Other 4,433,426 1,568,891 813,868 2,050,667 53.75% 4,433,426 Debt Service 10,786,675 4,781,389

  • 6,005,286

44.33% 10,462,784 Equipment/Software Platforms 968,197 794,774 106,304 67,119 93.07% 968,197 Other 14,073,486 7,029,701 2,297,308 4,746,477 66.27% 14,024,902* TOTAL EXPENDITURES 122,290,352 50,751,238 4,044,380 67,494,734 44.81% 50.00% 122,219,773

Projections: * Indicates where cost savings have been appliedSalaries/Benefits reflects not applying the one time cost savings of premium holiday at $980,000

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122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 120,816,065 122,219,773 122,219,773 122,219,773 53,170,837 79,072,985 83,091,963 90,598,175 96,941,487 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 110,000,000 120,000,000 130,000,000 August September October November December Budgeted Revenues Projected Revenues Actual Revenues

REVENUES PROJECTED OVER TIME

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122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 120,816,065 122,219,773 122,219,773 122,219,773 12,768,875 21,950,542 35,910,494 47,004,698 54,795,618 10,000,000 30,000,000 50,000,000 70,000,000 90,000,000 110,000,000 130,000,000 August September October November December Budgeted Expenditures Projected Expenditures Actual Expenditures

EXPENDITURES PROJECTED OVER TIME

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2020 2020-21 21 Budge udget t Goal als

üReduce budgetary dependency on Fund Balance

Ø Expenditure reductions

üContinue to maximize cost efficiencies in the overall operating budget

Ø Reduce re-occurring expenditures in objects 300 - 500

üContinue to support student achievement/outcomes

Ø Double down on current programs Ø Year 2 - Curriculum Plan Ø Year 5 - Strategic Plan

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Ac Act t 1 Index Hi History

Year MPVI Aid Ratio Act 1 Index Adjusted Act 1 Index CSD Tax Increase

2006-07 3.90% 6.88% 2007-08 3.40% 8.49% 2008-09 4.40% 5.16% 2009-10 .2761 4.10% 5.34% 2010-11 .2660 2.90% 6.01% 2011-12 .2689 1.40% 0.00% 2012-13 .2852 1.70% 0.00% 2013-14 .3174 1.70% 1.70% 2014-15 .3389 2.10% 3.26% 2015-16 .3555 1.90% 1.90% 2016-17 .3645 2.40% 1.30% 2017-18 .3870 2.50% 1.90% 2018-19 .4003 2.40% 2.40% 2019-20 .3997 2.30% 2.6% 2.60% 2020-21 Established in July 2020 2.60% ? MPVI AID RATIO

Determination if a district’s current fiscal year Act 1 Index will be adjusted is based upon the prior year’s MPVI Aid Ratio

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2019-20 Budget 2020-21 Preliminary Budget

Revenues Local Current Real Estate Taxes 83,915,152 85,725,572 Act 511 Taxes 5,005,000 5,080,000 Other Local Revenue 4,804,198 4,963,350 State 25,097,232 25,013,152 Federal 735,042 635,042 Fund Balance 2,733,728

  • Total Revenues

122,290,352 121,417,116

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Re Revenue Assumptions

ØReal Estate Tax Revenue

  • Preliminary Certified Assessment Value from Montgomery County Board of Assessment Appeals for

the 2019-2020 tax year - $1,874,801,650

  • 0.05% increase from 2019-20
  • Continue to monitor assessment appeals and impact on county assessment
  • Act 1 Index of 2.6% or 1.2552 mills will generate an additional $2,259,609
  • Impact on Median Assessed homeowner ($144,290) = increase of $15.09/month or $181.12/year
  • Value of a mill is $1,800,185
  • Every 0.10% of an increase will generate $86,908 in additional tax revenue
  • Every 0.10% of an increase will increase the millage rate 0.0483 mills

ØEIT trend continues between 2-2.5% growth ØState Revenue

  • Reflects 2019-20 allocations

ØFederal Revenue

  • Reflects 2019-20 allocations

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Object Expenditure Description 2019-20 Budget 2020-21 Preliminary Budget 100 Salaries 51,819,415 51,063,249 200 Benefits 31,099,303 32,634,623 300 Prof & Tech Services 7,790,352 8,883,342 400 Purchased Property Services 1,450,432 1,457,958 500 Other Purchased Services 14,490,290 14,142,230 600 Supplies 3,768,152 4,050,406 700 Equipment 168,706 168,573 800 Other Objects 5,352,027 5,890,279 900 Other Uses of Funds 6,351,675 6,357,431 Total Expenditures 122,290,352 124,648,091

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Salaries/Wages

  • CEA contract expired June 30, 2019
  • BEC contract expires June 30, 2020

Special Education

  • New/additional services
  • Transportation
  • Out-of-District Tuition

General Education

  • Out-of-District Tuition

Charter/Cyber School Tuition

  • New Student Enrollment

Facilities

  • Unanticipated infrastructure

repairs

BUDGET DEVELOPMENT - PRELIMINARY OUTLOOK EXPENDITURES - UNKNOWN

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Ex Expenditure Assu ssumptions

Contractual Obligations (account for approximately 88% of the budget)

  • Salaries/Benefits - approximately 70% of budgeted expenditures
  • Operations including utilities, insurance and leases
  • Technology operational and educational renewals
  • Transportation
  • Debt Service

üCEA contract expired June 30, 2019 üBEC contract expires June 30, 2020

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2019-20 Budget 2020-21 First Look Budget REVENUES Local 93,724,350 95,768,922 State 25,097,232 25,013,152 Federal 735,042 635,042 Fund Balance 2,733,728

  • TOTAL REVENUES

122,290,352 121,417,116 EXPENDITURES 100 - Salary 51,819,415 51,063,249 200 - Benefits 31,099,303 32,634,623 300 - Prof/Tech Svcs 7,790,352 8,883,342 400 - Purchased Property Svcs 1,450,432 1,457,958 500 - Other Purchased Svcs 14,490,290 14,142,230 600 - Supplies 3,768,152 4,050,406 700 - Property 168,706 168,573 800 - Other Objects 5,352,027 5,890,279 900 - Other Financing Uses 6,351,675 6,357,431 TOTAL EXPENDITURES 122,290,352 124,648,091 (3,230,975)

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DATE ACTION

September 2019

  • PDE publishes 2019-20 Act 1 Index/Adjusted Act 1 Index

November 2019- December 2019

  • Adopt Resolution authorizing Proposed Preliminary Budget

display and advertising

  • Certify/File Sterling Act Tax Credit Data
  • Residential homestead notification

January 2020

  • Adopt Opt-out resolution or 2019-20 Proposed Preliminary

Budget available for public inspection

  • Adopt 2020-21 Preliminary Budget

February 2020

  • Publish intent to apply for referendum exceptions

March 2020

  • File referendum exception request with PDE

May 2020

  • Notification of property tax relief allocation from PDE
  • Adopt 2020-21 Proposed Final Budget and available for public

inspection June 2020

  • Publish intent to adopt 2020-21 Final Budget
  • Adopt 2019-20 Final Budget

2020-21 PDE BUDGET TIMELINE

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The Financial Affairs Committee recommends that the administration be authorized to approve the Preliminary Budget for the 2020-2021 fiscal year: Resolved, that the Board of School Directors:

  • approves the Preliminary 2020-2021 General Fund Budget in the

amount of $124,648,091

  • authorizes the posting and advertising of the General Fund Budget with

final adoption scheduled for June 9, 2020;

  • authorizes the Superintendent, Business Administrator and Solicitor to

take any and all actions necessary to ensure legal compliance with preliminary budget approval.

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Re Recommendation….