North Penn School District 2019-2020 Draft Preliminary Budget - - PowerPoint PPT Presentation

North Penn School District

2019-2020 Draft Preliminary Budget Special Finance Committee Meeting February 4, 2019

Budget Agenda

• Timeline
• 10,000 ft. summary overview
• Major drivers of budget
• Next steps

Takeaways

• Very early
• Challenging budget
• Worst case scenario
• Tighter budget

3 Step Process

Preliminary

Proposed Final

Final

2/4 First Draft of Preliminary Budget Special Finance Committee Meeting 2/12 Preliminary Budget Adoption Referendum Exceptions Consideration Board Worksession 5/16 Adoption of Proposed Final Budget Board Action Meeting 6/20 Adoption of Final Budget Board Action Meeting

Budget Timeline

Balanced Budget

Revenues = Expenses

Deficit Budget

Expenses > Revenues

Surplus Budget

Revenues > Expenditures

0%

$14.1 M

Deficit Budget

7.86%

To Balance

Budget Comparison

Fiscal Year Budget Revenues Expenses Surplus (Deficit) 2019-2020 $261,594,995 $275,684,302

• $14,089,307

2018-2019 $257,503,013 $260,247,826

• $2,744,813

$ Change $4,091,982 $15,436,476

• $11,344,493

% Change 1.59% 5.93%

Act I Index

0% 1.25% 2.5% 3.75% 5%

6

• 7

7

• 8

8

• 9

9

• 1

1

• 1

1 1 1

• 1

2 1 2

• 1

3 1 3

• 1

4 1 4

• 1

5 1 5

• 1

6 1 6

• 1

7 1 7

• 1

8 1 8

• 1

9 1 9

• 2

2

• 2

1 2 1

• 2

2 2 2

• 2

3 3.9% 3.4% 4.4% 4.1% 2.9% 1.4% 1.7% 1.7% 2.1% 1.9% 2.4% 2.5% 2.4% 2.3% 2.8% 3.3% 3.4%

Act 1Exceptions

Special Education $1,553,866

Act 1Exceptions

Retirement $48,056

Act 1Exceptions

Special Education Retirement +0.89% 3.19%

0.00% 1.40% 2.80% 4.20% 5.60% 7.00% 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

Expenditure Variances

• 1.60%
• 0.80%

0.00% 0.80% 1.60% 2.40% 3.20% 4.00% 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

Revenue Variances

Fund Balance Breakdown 6/30/18

Description Amount Nonspendable (inventory & prepaid items) $683,858 Assigned for self-funded insurance $2,700,000 Committed to PSERS $16,806,523 Unassigned (7.96%) $20,727,432 Total Fund Balances $40,917,813

Unassigned Fund Balance History

$0 $4,200,000 $8,400,000 $12,600,000 $16,800,000 $21,000,000 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

Ending Fund Balance

The Good…

• Expiration of technology lease ~ $1.4 M
• No retirements as of yet ~ $1,000,000
• Retirement rate ~ 2.57% increase

The Good…

• Health care 1st look rates ~ $464,356
• Growth in EIT, transfer tax, investment

income ~ $1,350,000

• Additional propane bus grant ~ $500,000

The Unknowns…

• State funding ~ 2.0% budgeted
• Federal funding ~ 2.0% budgeted
• Retirements
• Staffing changes
• Worker’s comp rates ~ 0% budgeted

The Financial Challenges…

• Capital plan ~ $500,000
• Retirement increase ~ $3.3 M
• Tax base ~ 0.13% increase
• Tax base ~ $242,254 new revenue

The Financial Challenges…

• Salary increases ~ $4.8 M
• Charter school tuition ~ $500,000
• New debt ~ $1.0 M

0% 8% 16% 24% 32% 40% 00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-15 16-17 18-19 20-21 22-23 24-25

Employer Rate

Retirement Rate

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20

Gross Retirement Expense

Retirement Expense

0% 4% 7% 11% 14% 18% 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20

Retirement % of Budget

Retirement as a % of Budget

Budget Scenario

Current Budget Deficit

• $14,089,307

Act 1Increase - 2.30% $4,127,883 Anticipated Retirements $1,000,000 Budgetary Reserve $1,500,000 Potential Positive Variances (0.50%) $2,686,396 Revised Deficit

• $4,775,028

Tax Scenarios

Tax Increase Additional Revenue Remaining Deficit Average Homestead Increase 0.00% $0.00 $14,089,307 $0 1.00% $1,786,171 $12,303,136 $38 1.50% $2,686,289 $11,403,018 $57 2.00% $3,586,406 $10,502,901 $75 2.30% $4,127,883 $9,961,424 $87 3.19% $5,731,218 $8,358,089 $121

Next Steps

• Line item review of all revenues and expenses
• Governor’s budget address
• PSERS rate stabilization fund utilization analysis
• Staffing recommendations
• 5-year projections
• Refine and update data based on new information

Discussion