Manheim Central School District Budget Presentation May 11, 2020 - - PowerPoint PPT Presentation

SLIDE 1

Manheim Central School District Budget Presentation

May 11, 2020

Bryan Howett, Business Manager Kelly Martin, Asst. Business Manager

SLIDE 2

2020-21 Budget Update

5/11/2020 2

Current Year Projections: 19-20

Received retroactive Plan-Con payments for Doe Run and Baron El projects not budgeted for. The recurring amounts are captured in the 20-21 budget. The retroactive amounts are one-time “catch-up” funds.

BUDGETED AMOUNT PROJECTED AMOUNT VARIANCE REVENUE 56,121,773 $ 56,518,499 $ 396,726 $ EXPENDITURES 56,131,440 $ 55,906,170 $ 225,270 $ SURPLUS/(DEFICIT) (9,667) $ 612,329 $ 621,996 $ BUDGETED AMOUNT PROJECTED AMOUNT VARIANCE PLAN-CON ELEM PROJECTS 379,747 $ 1,080,955 $ 701,208 $ 2019-2020 PROJECTION 2019-2020 MAJOR ITEMS CONTRIBUTING TO VARIANCE

SLIDE 3

2020-21 Budget Update

5/11/2020 3

Millage Rate Increase 0% 1.30% 2.60% Revenue Revenue Revenue Revenue

Local Revenue

38,052,042 $ 38,485,969 $ 38,919,668 $

State Revenue

16,401,997 $ 16,401,997 $ 16,401,997 $

Federal Revenue

735,414 $ 735,414 $ 735,414 $

Total Revenues

55,189,453 $ 55,623,380 $ 56,057,079 $ Expenditures Expenditures Expenditures Expenditures

Salaries

21,786,172 $ 21,786,172 $ 21,786,172 $

Benefits

14,066,453 $ 14,066,453 $ 14,066,453 $

Operating Costs

14,558,356 $ 14,558,356 $ 14,558,356 $

Fund Transfers/Debt Service

6,347,757 $ 6,347,757 $ 6,347,757 $

Total Expenditures

56,758,738 $ 56,758,738 $ 56,758,738 $

Surplus/Deficit

(1,569,286) $ (1,135,359) $ (701,660) $

2020-2021 PROPOSED BUDGET AT VARIOUS MILLAGE OPTIONS

SLIDE 4

2020-21 Budget Update

5/11/2020 4

0% 14.6613 Current Tax ($) Increase New Tax Increase New Tax 3,665 48 $ 3,713 $ 95 $ 3,761 3,084 40 $ 3,124 $ 80 $ 3,164 2,853 37 $ 2,890 $ 74 $ 2,927 2,199 29 $ 2,228 $ 57 $ 2,256 1,466 19 $ 1,485 $ 38 $ 1,504 Median Homestead Value 194,600.00 $ Average Homestead Value 210,318.00 $ 250,000 210,318 194,600 150,000 100,000 Millage Rate 14.8518 15.0424 Assessed Values ($) Effect of Millage Increase on Taxpayers Percent Tax Increase 1.30% 2.60%

How would various millage rate increases impact homeowners?

• An increase at the 2.6% base index would increase the average home’s taxes by $80 per

year.

• An increase of 1.3% would increase the average home’s property tax by $40 per year.

SLIDE 5

2020-21 Budget Update

5/11/2020 5 Actual Actual Actual Actual Projected Proposed 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Unassigned Fund Balance Beginning of Yr 3,469,256 $ 3,353,017 $ 3,474,376 $ 4,208,836 $ 3,274,729 $ 3,885,702 $ Revenue: 49,984,797 $ 52,509,357 $ 53,318,704 $ 55,437,203 $ 56,518,499 $ 55,189,453 $ Local 34,331,927 36,299,034 36,996,358 38,608,533 38,938,360 38,052,042 State & Federal 15,652,871 16,210,323 16,322,346 16,828,670 17,580,139 17,137,411 Expenses 47,963,211 $ 50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 $ Net Change in Fund Balance 2,021,586 $ 1,634,188 $ 1,948,448 $ (1,010,315) $ 612,329 $ (1,569,286) $ Unassigned Fund Balance 3,353,017 $ 3,474,376 $ 4,208,836 $ 3,274,729 $ 3,885,702 $ 2,316,416 $ Restricted, Committed & Assigned FB 12,808,036 $ 14,320,864 $ 15,534,852 $ 15,458,644 $ 15,460,000 $ 15,460,000 $ Non-spendable 108,036 120,864 234,852 158,644 160,000 160,000 Committed for PSERS 3,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Assigned/Committed for Capital Projects 4,900,000 7,200,000 8,300,000 8,300,000 8,300,000 8,300,000 Committed for Debt Service 4,800,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Total Fund Balance 16,161,053 $ 17,795,240 $ 19,743,688 $ 18,733,373 $ 19,345,702 $ 17,776,416 $ DESCRIPTION FUND BALANCE ANALYSIS

SLIDE 6

2020-21 Budget Update

5/11/2020 6

SLIDE 7

2019-20 Budget Update

5/11/2020 7

SLIDE 8

2020-21 Budget Update

5/11/2020 8

Actual Actual Actual Actual Actual Actual Actual Actual Projected Proposed 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Local Revenue 30,114,053 $ 30,993,003 $ 31,946,560 $ 33,238,519 $ 34,331,927 $ 36,299,034 $ 36,996,358 $ 38,608,533 $ 38,938,360 $ 38,052,042 $ State Revenue 11,824,039 $ 12,132,619 $ 12,644,111 $ 13,267,413 $ 14,079,019 $ 14,662,100 $ 15,115,017 $ 16,008,460 $ 16,784,369 $ 16,401,997 $ Federal Revenue 615,808 $ 1,629,870 $ 1,312,901 $ 1,863,541 $ 1,573,852 $ 1,548,223 $ 1,207,329 $ 820,209 $ 795,770 $ 735,414 $ Total Revenue 42,553,899 $ 44,755,492 $ 45,903,572 $ 48,369,472 $ 49,984,797 $ 52,509,357 $ 53,318,704 $ 55,437,203 $ 56,518,499 $ 55,189,453 $ $ Increase 2,201,592 $ 1,148,080 $ 2,465,900 $ 1,615,325 $ 2,524,560 $ 809,347 $ 2,118,498 $ 1,081,296 $ (1,329,046) $ % Increase 5.17% 2.57% 5.37% 3.34% 5.05% 1.54% 3.97% 1.95%

• 2.35%

SLIDE 9

2020-21 Budget Update

5/11/2020 9

Percentage Breakdown of Revenue Sources

SLIDE 10

2020-21 Budget Update

5/11/2020 10

LOCAL REVENUE SOURCES

Numbers above are calculated with a 0% millage increase resulting in a projected decrease in local revenue Year over Year. Proposed revenues from RE Taxes accounts for 85.61% of local revenue and 59.03% of all MCSD revenue.

Projected Proposed 2019-2020 2020-2021 Current Real Estate Tax 32,500,000 $ 32,576,477 $ Interim Real Estate Tax 350,000 $ 310,000 $ Public Utilities Realty Tax 32,528 $ 33,000 $ Pay in Lieu of Taxes 2,985 $ 2,985 $ Earned Income taxes 3,250,000 $ 2,958,000 $ Transfer Taxes 575,000 $ 522,500 $ Delinquent Real Estate Tax 500,000 $ 550,000 $ Interest and Dividends 500,000 $ 105,000 $ Activities and Athletics 83,000 $ 76,300 $ Federal IDEA Passthrough 517,635 $ 500,000 $ Federal Revenue Local Sources 90,000 $ 90,000 $ Rental Income 15,000 $ 15,000 $ Tuition 40,000 $ 50,000 $ Miscellaneous Revenue 482,212 $ 262,780 $ All Local Revenue Sources 38,938,360 $ 38,052,042 $ Description of Source

SLIDE 11

2020-21 Budget Update

5/11/2020 11

School Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Act 1 4.70% 4.10% 5.30% 4.80% 3.40% 1.40% 1.70% 1.70% 2.10% 1.90% 2.40% 2.50% 2.40% 2.30% 2.60% MCSD 4.70% 0.00% 2.00% 2.00% 2.50% 1.00% 1.70% 1.70% 1.25% 1.00% 2.40% 0.00% 2.40% 2.30% 0.00%

Millage Rate

15.24 15.24 15.54 15.85 16.25 16.41 16.6889 16.9726 17.1848 17.3566 17.7731 17.7731 14.3317 14.6613 14.6613

SLIDE 12

2020-21 Budget Update

5/11/2020 12

Millage Decisions impact future years in a compounding fashion

YEAR TAX INC ACT 1 District Millage MILLS ALLOWED ASSESSMENT COLL REVENUE AT ACTUAL MILLS TAX IF ACT 1 EVERY YEAR ANNUAL EFFECT ON REVENUE

2016-17 2.40% 2.40% 13.9958 13.9958 $2,239,309,116 96.80% 30,338,013 $ 30,338,013 $

• $

2017-18 0.00% 2.50% 13.9958 14.3457 $2,282,465,141 96.80% 30,922,688 $ 31,695,755 $ 773,067 $ 2018-19 2.40% 2.40% 14.3317 14.6900 $2,333,957,800 96.80% 32,379,195 $ 33,188,674 $ 809,480 $ 2019-20 2.30% 2.30% 14.6613 15.0279 $2,354,616,500 96.80% 33,417,043 $ 34,252,535 $ 835,492 $ 2020-21 0.00% 2.60% 14.6613 15.4186 $2,376,447,100 95.80% 33,378,448 $ 35,102,513 $ 1,724,065 $ 2021-22 3.10% 3.10% 15.1158 15.8966 $2,394,270,453 96.00% 34,743,661 $ 36,538,242 $ 1,794,581 $ 2022-23 3.20% 3.20% 15.5995 16.4053 $2,412,227,482 96.00% 36,124,375 $ 37,990,272 $ 1,865,897 $ 2023-24 3.30% 3.30% 16.1143 16.9466 $2,430,319,188 96.00% 37,596,353 $ 39,538,280 $ 1,941,928 $ 2024-25 3.40% 3.40% 16.6622 17.5228 $2,448,546,582 96.00% 39,166,188 $ 41,189,201 $ 2,023,013 $ Cumulative Revenue foregone 11,767,523 $

Cumulative Impact of taxing below Act 1 (projected to 24-25)

Note: Millage and Assessed value prior to 2018-19 is adjusted for re-assessment

YEAR TAX INC ACT 1 Millage MILLS ALLOWED ASSESSMENT COLL REVENUE AT ACTUAL MILLS TAX IF ACT 1 EVERY YEAR ANNUAL EFFECT ON REVENUE 2016-17 2.40% 2.40% 13.9958 13.9958 $2,239,309,116 96.80% 30,338,013 30,338,013

• $

2017-18 0.00% 2.50% 13.9958 14.3457 $2,282,465,141 96.80% 30,922,688 31,695,755 773,067 $ 2018-19 2.40% 2.40% 14.3317 14.6900 $2,333,957,800 96.80% 32,379,195 33,188,674 809,480 $ 2019-20 2.30% 2.30% 14.6613 15.0279 $2,354,616,500 96.80% 33,417,043 34,252,535 835,492 $ 2020-21 0.00% 2.60% 14.6613 15.4186 $2,376,447,100 95.80% 33,378,448 35,102,513 1,724,065 $ 4,142,104 $

CUMULATIVE EFFECT OF TAXING UNDER ACT 1 INDEX (Since 2016-17)

Note: Millage and Assessed value prior to 2018-19 is adjusted for re-assessment

Cumulative Revenue Foregone

SLIDE 13

2020-21 Budget Update

5/11/2020 13

Year Taxable Assessed Dollar Growth % Assess Millage % Millage Homestead/ Farmstead RE Tax Collect Rate

2015-16 1,730,781,900 $ 31,415,400 $ 1.85% 17.3566 1.00% 833,060 $ 28,272,791 $ 96.80 2016-17 1,763,390,900 $ 32,609,000 $ 1.88% 17.7731 2.40% 830,455 $ 29,534,133 $ 96.80 2017-18 1,797,375,000 $ 33,984,100 $ 1.93% 17.7731 0.00% 837,965 $ 30,111,538 $ 96.80 Reassessment 2,282,450,565 $ 2018-19 2,333,957,800 $ 36,167,100 $ 2.26% 14.3317 2.40% 830,322 $ 31,575,443 $ 96.80 2019-20 2,354,616,500 $ 20,658,700 $ 0.89% 14.6613 2.30% 838,779 $ 32,605,105 $ 96.80 2020-21 2,376,447,100 $ 21,830,600 $ 0.93% 14.6613 0.00% 835,131 $ 32,578,393 $ 95.80

% Increase Assessed Value AV Growth Millage Growth RE Tax Revenue HS/FS RE Tax Revenue Additional Revenue Revenue / Mill

0.00% 2,376,447,100 $ 21,830,600 $ 313,354 $ 14.6613 835,131 $ 32,578,393 $ (26,713) $ 2,222,067 0.50% 2,376,447,100 $ 21,830,600 $ 313,354 $ 14.7346 835,131 $ 32,745,270 $ 140,165 $ 2,222,339 1.00% 2,376,447,100 $ 21,830,600 $ 313,354 $ 14.8079 835,131 $ 32,912,147 $ 307,042 $ 2,222,607 1.50% 2,376,447,100 $ 21,830,600 $ 313,354 $ 14.8812 835,131 $ 33,079,025 $ 473,920 $ 2,222,873 2.00% 2,376,447,100 $ 21,830,600 $ 313,354 $ 14.9545 835,131 $ 33,245,902 $ 640,797 $ 2,223,137 2.60% 2,376,447,100 $ 21,830,600 $ 313,354 $ 15.0425 835,131 $ 33,446,246 $ 841,141 $ 2,223,450

Real Estate Tax at Various Millage Rate Increases ASSESSED VALUE AND MILLAGE RATE GROWTH

SLIDE 14

2020-21 Budget Update

5/11/2020 14

SLIDE 15

2020-21 Budget Update

5/11/2020 15

STATE REVENUE SOURCES

PA has been hit hard with the COVID crisis. Basic Ed and Special Ed are budgeted level until more info is known.

MCSD has been allocated $388,786 from the CARES Act. PASBO has cautioned against including it as new dollars.

Projected Proposed 2019-20 2020-21 Basic Education Subsidy 7,251,124 $ 7,251,124 $ Tuition (1305 and 1306 Children) 20,000 $ 20,000 $ Vocational Education 45,000 $ 45,000 $ Special Education Subsidy 1,656,279 $ 1,656,279 $ Public Transportation Subsidy 1,072,199 $ 1,018,589 $ Non Public Transportation Subsidy 92,400 $ 92,400 $ Rental & Sinking Fund (PlanCon) 1,080,955 $ 569,960 $ Health Services 60,000 $ 60,000 $ State Property Tax Reduction 831,850 $ 832,903 $ Safe and Secure Schools Grant

• $

40,000 $ Ready to Learn Grant 301,665 $ 301,665 $ State Share of Social Sec & Medicare 786,724 $ 827,855 $ State Share of Retirement Contribution 3,586,173 $ 3,686,222 $ All State Revenue Services 16,784,369 $ 16,401,997 $ Description of Source

SLIDE 16

2020-21 Budget Update

5/11/2020 16

Fiscal School Year 2016/17 2017/18 2018/19 2019/20 2020/21

∆ over prior

Actual Actual Actual Projected Proposed Year Projected

1110 Regular Ed

21,845,172 $ 20,572,587 $ 21,489,931 $ 23,015,680 $ 23,145,960 $ 0.57%

1200 Special Ed

6,764,820 6,519,607 7,423,396 8,439,545 8,060,197

• 4.49%

1300 Vocational Ed

1,205,613 1,186,495 1,281,791 1,286,640 1,358,544 5.59%

1400 Other Instruction

12,619 165,345 114,381 87,617 95,408 8.89%

1800 Pre-School

137,780 78,857 80,643 75,334

• 6.58%

2100 Student Services

1,608,155 1,592,372 1,700,927 1,629,818 1,691,299 3.77%

2200 Staff Services

1,167,897 1,348,880 1,566,188 1,752,243 1,648,304

• 5.93%

2300 Administrative

2,618,879 2,579,507 2,592,333 2,712,463 2,613,637

• 3.64%

2400 Pupil Health

413,542 481,219 478,847 475,235 458,298

• 3.56%

2500 Business Services

716,200 670,009 709,384 775,198 770,528

• 0.60%

2600 Operations & Maint

3,435,468 3,976,120 4,152,040 3,665,394 4,094,081 11.70%

2700 Transportation

2,758,891 2,882,741 3,123,169 3,037,890 3,157,313 3.93%

2800 Central Svc - Technology

1,662,873 2,011,167 2,276,735 1,622,660 1,689,308 4.11%

2900 Other Support Svc

33,080 32,323 36,223 35,306 35,000

• 0.87%

3200 Activities & Athletics

1,064,639 1,159,250 1,192,455 1,148,493 1,211,270 5.47%

3300 Community Svc

21,696 46,561 29,851 35,855 56,500 57.58%

4100 Site Acquisition

• 10,000

1,930,663

• 0.00%

5100 Debt Service

5,445,052 6,012,738 6,171,924 6,027,491 6,167,757

5200 Transfers to Other Funds

100,574 (14,445) 98,422 78,000 180,000 $

5900 Budgetary Reserve

• 250,000

100.00%

Total Expenditures

50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 $ 1.52%

EXPENSES BY FUNCTION

Function Description 3.97%

SLIDE 17

2020-21 Budget Update

5/11/2020 17

Fiscal School Year 2016/17 2017/18 2018/19 2019/20 2020/21

∆ over prior

Actual Actual Actual Projected Proposed Year Projected

100 Salaries

20,102,821 $ 20,267,785 $ 21,025,162 $ 21,680,016 $ 21,786,172 $ 0.49%

200 Benefits

12,380,842 12,107,811 13,053,710 13,506,795 14,066,453 4.14%

300 Professional Services

4,294,064 3,748,196 4,379,076 4,933,403 4,168,165

• 15.51%

400 Property Services

953,839 1,228,650 1,450,816 1,588,524 1,395,744

• 12.14%

500 Other Services

4,865,474 5,439,179 5,634,170 5,523,107 5,826,846 5.50%

600 Supplies

2,637,538 2,366,332 2,584,537 2,392,888 2,781,298 16.23%

700 Equipment/Property

6,619 122,397 1,938,062 57,996 31,150

• 46.29%

800 Other Objects

88,345 2,634,906 2,948,565 2,675,441 2,866,343 7.14%

900 Other Uses of Funds

5,545,626 3,455,000 3,433,421 3,548,000 3,836,567 8.13%

Total Expenditures

50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 $ 1.52%

Adjusted Total Expenditure

50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 $

Growth in Expenditures

4.43% 0.97% 9.88%

• 0.96%

1.52% Dollar Growth in Expenditures 2,911,959 $ 495,087 $ 5,077,262 $ (541,349) $ 852,569 $ Object Description

EXPENSES BY OBJECT

SLIDE 18

2020-21 Budget Update

5/11/2020 18

Salary & Benefits makes up 63.16%

• f Budget.

SLIDE 19

2019-20 Budget Update

5/11/2020 19

SLIDE 20

2020-21 Budget Update

5/11/2020 20

2016-2017 2017-2018 2018-2019 2019-2020 Actual Actual Actual Projected Proposed $ ∆ % ∆

Salaries Professional 14,715,458 $ 14,956,451 $ 15,461,447 $ 16,013,943 $ 15,819,488 $ (194,456) $

• 1.21%

Support/Operations/Activities 3,633,827 $ 3,594,522 $ 3,839,864 $ 3,951,288 $ 4,221,205 $ 269,918 $ 6.83% Administration 1,753,536 $ 1,716,812 $ 1,723,852 $ 1,714,785 $ 1,745,479 $ 30,694 $ 1.79% Total Salaries 20,102,821 $ 20,267,785 $ 21,025,162 $ 21,680,016 $ 21,786,172 $ 106,156 $ 0.49% Change from Prior Year 1.85% 0.82% 3.74% 3.11% 0.49% 365,241 $ 164,964 $ 757,377 $ 654,855 $ 106,156 $ Benefits Insurances 4,484,742 $ 3,622,395 $ 4,181,983 $ 4,017,535 $ 4,263,800 $ 246,265 $ 6.13% Pension 5,901,773 $ 6,511,436 $ 6,948,261 $ 7,172,345 $ 7,372,443 $ 200,098 $ 2.79% Tuition Reimbursement 242,105 $ 227,387 $ 262,870 $ 425,888 $ 400,500 $ (25,388) $

• 5.96%

Social Security 1,479,662 $ 1,494,844 $ 1,550,848 $ 1,573,448 $ 1,655,709 $ 82,261 $ 5.23% Other (Work Comp, etc) 272,560 $ 251,749 $ 109,748 $ 317,579 $ 374,000 $ 56,421 $ 17.77% Total Benefits 12,380,841 $ 12,107,811 $ 13,053,710 $ 13,506,795 $ 14,066,453 $ 559,658 $ 4.14% Growth 8.93%

• 2.21%

7.81% 3.47% 4.14% BENEFITS % of salary 61.59% 59.74% 62.09% 62.30% 64.57% PSERS % of Salary 29.36% 32.13% 33.05% 33.08% 33.84% Insurances % of Salary 22.31% 17.87% 19.89% 18.53% 19.57%

Salary & Benefits Detail - General Fund Budget 2019-20

DESCRIPTION

2020-2021 Proposed

SLIDE 21

2020-21 Budget Update

5/11/2020 21

Professional Staff

228 227 227 228 223 Administrators 19.5 19.5 19.5 18.5 18.5

Cafeteria

23.5 21 23.5 23 21.5

Custodial

28 29.5 30.5 32.5 32.5

10 Month Administrative Asst

11 11 8 7 7

12 Month Admin Assistant

17 16 16 17 17

Technology

5 4 5 5 6

Support Staff (Aides)

60.5 57.5 60 62 65

PT Mail Carrier

0.5 0.5 0.5 0.5 0.5 Totals 393 386 390 393.5 391 2020-2021 Proposed

Breakdown of Labor in FTEs (Full-Time Equivalents)

2019-2020 Actual Type of Employee 2016-2017 Actual 2017-2018 Actual 2018-2019 Actual

SLIDE 22

2019-20 Budget Update

5/11/2020 22 2016/17 2017/18 2018/19 2019/20 2020/21 Actual Actual Actual Projected Proposed

Total FTE's (Not including Food Service) 369.5 365 366.5 370.5 369.5 Average Payroll Per FTE 54,405 $ 55,528 $ 57,367 $ 58,516 $ 58,961 $ Average PSERS Per FTE (Less State Share) 7,986 $ 8,920 $ 9,479 $ 9,679 $ 9,976 $ Average Insurance Costs Per FTE 12,137 $ 9,924 $ 11,411 $ 10,844 $ 11,539 $ Average Total Benefits Per FTE (Less State Share) 23,519 $ 22,205 $ 24,022 $ 24,653 $ 25,852 $ Total Average Salary and Benefits Per FTE 77,924 $ 77,733 $ 81,390 $ 83,168 $ 84,813 $ Total Benefits as a % of Labor Costs

43.23% 39.99% 41.87% 42.13% 43.85%

Salary and Benefits Per FTE - General Fund Budget 2020-21

SLIDE 23

2020-21 Budget Update

5/11/2020 23

SLIDE 24

2020-21 Budget Update

5/11/2020 24

Rates were forecasted on December 6, 2019 by PSERS and presume a 7.25% market return.

SLIDE 25

2020-21 Budget Update

5/11/2020 25

SLIDE 26

2020-21 Budget Update

5/11/2020 26

MCSD had planned to use approximately $7.5 Million from reserves to help phase millage in for the HS project. Period of FB Reserve Phase--in

SLIDE 27

2020-21 Budget Update

5/11/2020 27

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024.25 Debt Service 5,447,292 $ 6,016,115 $ 6,250,578 $ 6,022,313 $ 6,167,758 $ 6,824,136 $ 7,968,999 $ 8,470,923 $ 8,430,063 $ Total Expenses 50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 $ 58,430,408 $ 60,192,202 $ 62,037,139 $ 63,853,264 $ % of Expenses 10.71% 11.71% 11.07% 10.77% 10.87% 11.68% 13.24% 13.65% 13.20%

PROJECTED W/High School

SLIDE 28

2019-20 Budget Update

5/11/2020 28

5 YEAR FORECAST

Considerations and Assumptions

• A 0% increase was used for 2020-21. This projection assumes we will raise taxes to

the limits of the base index in future years.

• No debt service for the High School is included in this model.
• Assessed value growth was presented earlier. As a precaution, annual assessment

growth was fixed at 1.00% per year. We will have to keep a close eye on this assumption.

• PSERS released their estimates for employer rates through 27-28. Those figures

were assumed for this model.

• Annual Salary increases have been projected based on the current agreement with

the MCEA. This number is affected by “column movement” and attritional savings due to retirements. Those factors were not considered in this model.

SLIDE 29

2019-20 Budget Update

5/11/2020 29

5 YEAR FORECAST SUMMARY

Note: Debt Service for the Renovation of the HS is excluded

Budget History and Forecast 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

Revenue Actual Projected Forecasted Forecasted Forecasted Forecasted Forecasted

Local Revenue

38,608,533 $ 38,938,360 $ 38,052,042 $ 40,019,954 $ 41,855,543 $ 43,726,581 $ 45,749,024 $

State Revenue

16,008,460 16,784,369 16,404,839 16,737,436 17,115,312 17,486,194 17,882,397

Federal Revenue

820,209 795,770 735,414 735,414 735,414 735,414 735,414

Total Revenues

55,437,203 $ 56,518,499 $ 55,192,295 $ 57,492,804 $ 59,706,269 $ 61,948,189 $ 64,366,835 $

Expenditures

Actual Projected Forecasted Forecasted Forecasted Forecasted Forecasted

Salaries

21,025,162 $ 21,680,016 $ 21,786,172 $ 22,439,757 $ 23,112,950 $ 23,806,338 $ 24,520,528 $

Benefits

13,053,710 13,506,795 14,066,453 14,677,208 15,358,823 16,030,256 $ 16,725,226 $

Operating Costs

16,118,069 14,697,045 14,738,356 15,139,306 15,553,251 16,030,619 $ 16,471,852 $

Debt Service

6,250,578 6,022,313 6,167,758 6,174,136 6,167,177 6,169,926 $ 6,135,658 $

• $

Total Expenditures

56,447,518 $ 55,906,170 $ 56,758,738 $ 58,430,408 $ 60,192,202 $ 62,037,139 $ 63,853,264 $

Surplus/Deficit

(1,010,315) $ 612,329 $ (1,566,443) $ (937,603) $ (485,933) $ (88,951) $ 513,570 $

Fund Balance

Actual Projected Forecasted Forecasted Forecasted Forecasted Forecasted

Unassigned

3,274,729 $ 3,887,058 $ 3,320,615 $ 3,320,614 $ 3,320,614 $ 3,320,614 $ 3,834,185 $

Committed PSERS

2,000,000 2,000,000 2,000,000 1,062,397 576,464 487,514 487,514

Capital Projects

8,300,000 8,300,000 8,300,000 8,300,000 8,300,000 8,300,000 8,300,000

Debt Service

5,000,000 5,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Total Fund Balance

18,574,729 $ 19,187,058 $ 17,620,615 $ 16,683,011 $ 16,197,078 $ 16,108,128 $ 16,621,699 $

SLIDE 30

2019-20 Budget Update

5/11/2020 30

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Budget/Projection Proposed Forecasted Forecasted Forecasted Forecasted

Revenues

Local 38,608,533 $ 38,938,360 $ 38,052,042 $ 40,019,954 $ 41,855,543 $ 43,726,581 $ 45,749,024 $ Real Estate Taxes 33,011,328 $ 33,925,000 $ 33,958,977 $ 35,498,990 $ 37,159,728 $ 38,819,520 $ 40,577,785 $ Tax Billings 31,574,694 $ 32,500,000 $ 32,576,477 $ 34,064,070 $ 35,648,826 $ 37,265,022 $ 38,991,328 $ Other RE Taxes 1,436,634 $ 1,425,000 $ 1,382,500 $ 1,434,920 $ 1,510,902 $ 1,554,497 $ 1,586,457 $ Earned Income Taxes 3,620,089 $ 3,250,000 $ 2,958,000 $ 3,342,540 $ 3,442,816 $ 3,546,101 $ 3,652,484 $ Other Local Revenues 1,977,116 $ 1,763,360 $ 1,135,065 $ 1,178,424 $ 1,252,998 $ 1,360,961 $ 1,518,755 $ State 16,008,460 $ 16,784,369 $ 16,404,839 $ 16,737,436 $ 17,115,312 $ 17,486,194 $ 17,882,397 $ BEF 7,020,120 $ 7,251,124 $ 7,251,124 $ 7,359,891 $ 7,470,289 $ 7,582,344 $ 7,696,079 $ SEF 1,606,096 $ 1,656,279 $ 1,656,279 $ 1,705,967 $ 1,757,146 $ 1,809,861 $ 1,864,157 $ Ready to Learn 301,665 $ 301,665 $ 301,665 $ 301,665 $ 301,665 $ 301,665 $ 301,665 $ Transportation 1,139,129 $ 1,164,599 $ 1,110,989 $ 1,142,400 $ 1,142,400 $ 1,142,400 $ 1,142,400 $ PlanCon (MS & Elementaries) 724,906 $ 1,080,955 $ 544,501 $ 545,067 $ 544,448 $ 544,691 $ 561,470 $ PlanCon (CTC)

• $
• $

28,302 $ 28,302 $ 28,302 $ 28,302 $ 28,302 $ PSERS 3,475,138 $ 3,586,173 $ 3,686,222 $ 3,842,921 $ 4,034,088 $ 4,213,436 $ 4,397,512 $ Social Security 775,424 $ 672,081 $ 827,855 $ 858,321 $ 884,070 $ 910,592 $ 937,910 $ Other State Revenues 965,982 $ 1,071,493 $ 997,903 $ 952,903 $ 952,903 $ 952,903 $ 952,903 $ Federal 820,209 $ 795,770 $ 735,414 $ 735,414 $ 735,414 $ 735,414 $ 735,414 $ Federal Title 609,495 $ 600,270 $ 545,414 $ 545,414 $ 545,414 $ 545,414 $ 545,414 $ Medical Access 210,714 $ 160,500 $ 190,000 $ 190,000 $ 190,000 $ 190,000 $ 190,000 $ KTO/Miscellaneous

• $

35,000 $

• $
• $
• $
• $
• $

Total Revenues 55,437,203 $ 56,518,499 $ 55,192,295 $ 57,492,804 $ 59,706,269 $ 61,948,189 $ 64,366,835 $

Manheim Central School District Five Year Budget Projection (updated 5/2020)

SLIDE 31

2020-21 Budget Update

5/11/2020 31

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Expenditures Salaries 21,025,162 $ 21,680,016 $ 21,786,172 $ 22,439,757 $ 23,112,950 $ 23,806,338 $ 24,520,528 $ Taxes 1,550,848 $ 1,573,448 $ 1,655,709 $ 1,716,641 $ 1,768,141 $ 1,821,185 $ 1,875,820 $ Benefits 11,502,861 $ 11,933,347 $ 12,410,743 $ 12,960,566 $ 13,590,683 $ 14,209,071 $ 14,849,405 $ PSERS 6,948,261 $ 7,172,345 $ 7,372,443 $ 7,685,841 $ 8,068,176 $ 8,426,872 $ 8,795,023 $ Healthcare 4,181,983 $ 4,017,535 $ 4,263,800 $ 4,476,990 $ 4,700,840 $ 4,935,882 $ 5,182,676 $ Other Benefits 372,618 $ 743,467 $ 774,500 $ 797,735 $ 821,667 $ 846,317 $ 871,707 $ Substitutes 573,491 $ 550,000 $ 570,000 $ 570,000 $ 570,000 $ 570,000 $ 570,000 $ Charter Schools 739,877 $ 875,000 $ 875,000 $ 875,000 $ 875,000 $ 875,000 $ 875,000 $ Transportation 2,909,838 $ 2,912,700 $ 2,985,518 $ 3,060,155 $ 3,136,659 $ 3,215,076 $ 3,295,453 $ Capital Reserve Transfer 125,000 $ 175,000 $ 250,000 $ 250,000 $ 250,000 $ 300,000 $ 300,000 $ Debt Service (Includes HS) 6,250,578 $ 6,022,313 $ 6,167,758 $ 6,174,136 $ 6,167,177 $ 6,169,926 $ 6,135,658 $ Technology (Software&Hardware) 1,693,959 $ 1,542,604 $ 1,571,169 $ 1,600,448 $ 1,630,460 $ 1,661,221 $ 1,692,752 $ Educational & Operational Costs 10,075,904 $ 8,641,741 $ 8,486,669 $ 8,783,703 $ 9,091,132 $ 9,409,322 $ 9,738,648 $ Total Expenditures 56,447,518 $ 55,906,170 $ 56,758,738 $ 58,430,408 $ 60,192,202 $ 62,037,139 $ 63,853,264 $ Debt Service 11.07% 10.77% 10.87% 10.57% 10.25% 9.95% 9.61% Surplus/Deficit (1,010,315) $ 612,329 $ (1,566,443) $ (937,603) $ (485,933) $ (88,950) $ 513,571 $ Use of District Reserves to Balance Budgets Uses of Fund Balance 1,010,315 $ (612,329) $ 1,566,443 $ 937,603 $ 485,933 $ 88,950 $ (513,571) $ Assigned/Committed for PSERS

• $
• $
• $

937,603 $ 485,933 $ 88,950 $

• $

Assigned for Capital Projects

• $
• $
• $
• $
• $
• $
• $

Assigned for Debt Service

• $
• $

1,000,000 $

• $
• $
• $
• $

Unassigned and Uncommitted Funds 1,010,315 $ (612,329) $ 566,443 $ $ (0) $ $ (513,571) $ Use of Other Funds Capital Reserve

• $
• $
• $
• $
• $
• $
• $

Healthcare Fund

• $
• $
• $
• $
• $
• $
• $

Budget Balance

• $
• $
• $
• $
• $
• $
• $

SLIDE 32

2019-20 Budget Update

5/11/2020 32

5 YEAR FORECAST

Future Budget Concerns

• A 0% this year will have a compounding effect and will impact future budgets

negatively.

• Future Act 1 Indexes may be lowered due to calculation method.
• PSERS Rates may be impacted due to investment losses.
• Assessed Value growth, already declining, may be negatively impacted at least in

the short term.

SLIDE 33

2019-20 Budget Update

5/11/2020 33

ECONOMIC SHUTDOWN POTENTIAL IMPACT ON FUTURE ACT 1 BASE INDEXES

A school district's Act 1 index is calculated using an average of the 3-Year overlapping average

• f the Statewide Average Weekly Wage (SAWW) and the Employer Cost Index (ECI). The

SAWW is calculated from the monthly employment and quarterly wage data reported by employers on the state unemployment tax returns. The ECI shows the changes in the costs of labor for business in the US. A statewide decrease in wages will most likely lead to a lower SAWW and ECI, which will impact the average of the two.

Source: Independent Fiscal Office (IFO) School District Property Tax Forecast, February 2020

SLIDE 34

2019-20 Budget Update

5/11/2020 34

SLIDE 35

2019-20 Budget Update

5/11/2020 35

2021 Assessed Valuation 2,376,447,100 $ Millage Rate 14.6613 2021 2022 2023 2024 2025 Projected % Change to Assessed Valuation 0.00% 1.00% 1.00% 1.00% 1.00% Act 1 Index 2.60% 3.20% 3.30% 3.40% 3.50% Act 1 Index If Adjustment 2.60% 2.10% 1.80% 1.90% 2.00% Millage Rate determined by District 0.00% 3.20% 3.30% 3.40% 3.50% Collection Percentage Rate 95.80% 96.00% 96.20% 96.20% 96.20% Homestead/Farmstead Reduction $831,850 $831,850 $831,850 $831,850 $831,850 Homestead/Farmstead Carryover $4,228 $0 $0 $0 $0 PSERS Exception 0.0000 0.0000 0.0000 0.0000 0.0000 Special Education Exception 0.0000 0.0000 0.0000 0.0000 0.0000 Debt/Other Exceptions 0.0000 0.0000 0.0000 0.0000 0.0000 Total Referendum Exceptions 0.0000 0.0000 0.0000 0.0000 0.0000 Assessed Valuation $2,376,447,100 $2,400,211,571 $2,424,213,687 $2,448,455,824 $2,472,940,382 Millage Rate based on School District Plan 14.6613 15.1305 15.6298 16.1612 16.7268 Millage Rate based on Act 1 Index 15.0425 15.5239 16.0362 16.5814 17.1617 Millage Rate based on Future Rates Reduced 14.6613 14.9692 15.2386 15.5281 15.8387 2021 2022 2023 2024 2025 Total Change

Tax C Calcuation -

• F

Forecasted b by c current A Act 1 1 $33,445,339 $34,971,643 $36,597,679 $38,255,830 $40,026,907 $183,297,398 Tax C Calcuatio ion -

• S

SD I Incre rease & & C Curr rrent A Act 1 1 $32,577,485 $34,065,169 $35,649,916 $37,266,085 $38,992,293 $178,550,949

• $4,746,449

Tax C Calcuatio ion -

• S

SD i incre rease p plus r revised A Act $32,577,485 $33,693,501 $34,737,601 $35,774,872 $36,879,531 $173,662,991

• $9,634,407

PROPERTY TAX PROJECTION TOOL

SLIDE 36

2019-20 Budget Update

5/11/2020 36

Year Published Rates (1) Projected Payroll (2) ER Contribution Net Cost Inc ER Contribution Net Cost Budgetary Difference 2020-21 34.51% 21,786,172 $ 2021-22 34.95% 22,439,757 $ 7,842,695 $ 3,921,348 $ 2.00% 8,291,490 $ 4,145,745 $ 224,397.57 $ 2022-23 35.62% 23,112,950 $ 8,232,833 $ 4,116,416 $ 2.00% 8,695,092 $ 4,347,546 $ 231,129.50 $ 2023-24 36.12% 23,806,338 $ 8,598,849 $ 4,299,425 $ 2.00% 9,074,976 $ 4,537,488 $ 238,063.38 $ 2024-25 36.60% 24,520,528 $ 8,974,513 $ 4,487,257 $ 2.00% 9,464,924 $ 4,732,462 $ 245,205.28 $ 2025-26 37.23% 25,256,144 $ 9,402,863 $ 4,701,431 $ 2.00% 9,907,985 $ 4,953,993 $ 252,561.44 $ 2026-27 37.79% 26,013,829 $ 9,830,626 $ 4,915,313 $ 2.00% 10,350,902 $ 5,175,451 $ 260,138.29 $ 2027-28 38.17% 26,794,244 $ 10,227,363 $ 5,113,681 $ 2.00% 10,763,248 $ 5,381,624 $ 267,942.44 $ Cost At Current Rates If PSERS Rates Increase Impact of PSERS Rate Increase (1) A 7.25% investment return is presumed by PSERS. (2) Projected payroll assumes a rate increase based on current MCEA contract.

SLIDE 37

2020-21 Budget Update

5/11/2020 37

Average 1.62%

SLIDE 38

2020-21 Budget Update

5/11/2020 38 Description of Scenario 20-21 Tax Inc 2020-21 2021-22 2022-23 2023-24 2024-25 If COVID-19 and the related shutdown was just a bad dream. High School Debt fugured in. 2.60% 562,921 $ 195,835 $ (618,433) $ (765,492) $ (234,874) $ Steady Recovery, No change to Act 1, No Change to PSERS, Continue with HS project 0.00% (1,566,443) $ (1,587,603) $ (2,287,755) $ (2,389,948) $ (1,780,835) $ Steady Recovery, No change to Act 1, No Change to PSERS, No High School Debt 0.00% (1,566,443) $ (937,603) $ (485,933) $ (88,950) $ 513,571 $ Steady Recovery, No change to Act 1, No Change to PSERS, No High School Debt 1.30% (1,132,744) $ (484,606) $ (12,323) $ 405,660 $ 1,030,611 $ Longer Recovery, Future Act 1 Indexes impacted, No Change to PSERS, No High School Debt 0.00% (1,566,443) $ (1,315,513) $ (1,413,375) $ (1,604,686) $ (1,633,863) $ Longer Recovery, Future Act 1 Indexes impacted, No Change to PSERS, No High School Debt 1.30% (1,132,744) $ (867,344) $ (951,617) $ (1,129,450) $ (1,144,274) $ Longer Recovery, Future Act 1 Indexes impacted, PSERS rates impacted, No High School Debt 0.00% (1,566,443) $ (1,535,422) $ (1,639,882) $ (1,837,989) $ (1,874,164) $ Longer Recovery, Future Act 1 Indexes impacted, PSERS rates impacted, No High School Debt 1.30% (1,132,744) $ (1,087,254) $ (1,178,124) $ (1,362,752) $ (1,384,575) $

Various Scenarios from 5 Year Forecast Model

SLIDE 39

2018-19 Budget Update

5/11/2020 39

QUESTIONS/DISCUSSION