North Penn School District 2020-2021 Budget Update May 4, 2020 - - PowerPoint PPT Presentation

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Apr 25, 2023 243 likes •492 views

North Penn School District 2020-2021 Budget Update May 4, 2020 Budget Timeline Finance Committee Meeting 5/4 Board Direction on Tax Rate Adoption of Proposed Final Budget 5/12 Board Worksession Adoption of Final Budget 6/18 Board Action

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North Penn School District

2020-2021 Budget Update May 4, 2020

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5/4 Finance Committee Meeting Board Direction on Tax Rate 5/12 Adoption of Proposed Final Budget Board Worksession 6/18 Adoption of Final Budget Board Action Meeting

Budget Timeline

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2.6%

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Act 1Exceptions

Special Education $1,541,260

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Act 1Exceptions

Special Education +0.84% 3.43%

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0%

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$11.1 M

Deficit Budget

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6.05%

To Balance

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It’s a Revenue Problem

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Revenue Changes

1. Preliminary Budget

$269,635,219

2. Changes from Preliminary to 4/14
$2,340,444
3. Retirement and SS Subsidy Reduction
$824,315
4. Earned Income Tax Reduction
$700,000
5. Realty Transfer Tax Reduction
$500,000
6. BEF and SEF Subsidy Reduction to 2019-20
$382,204
7. Real Estate Tax Collection @96.8%
$370,424
8. All Others

$29,528
9. Increased Assessed

Values $217,772

10. Current Revenue

$264,706,076

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PASBO Report Comparison

Revenue PASBO North Penn Earned Income Tax $14,806,383 $17,331,000 Delinquent Taxes $1,044,199 $2,000,000 Investment Income $395,489 $400,000 Realty Transfer Tax $2,637,418 $3,400,000 Interim Real Estate Tax $542,441 $800,000 Total $19,425,930 $23,931,000

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Expenditure Changes

1. Preliminary Budget

$282,498,098

2. Changes from Preliminary to 4/14
$2,185,591
3. Personnel Changes
$3,441,339
4. Pre-Purchase of 20-21Budgeted Items
$953,134
5. Bond Refunding Savings
$339,802
6. Worker’s Comp Premium Reduction
$82,558
7. Unemployment Compensation

$50,000

8. All Others

$304,797

9. Current Expenditures

$275,850,471

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Budget Comparison

Fiscal Year Budget Revenues Expenses Surplus (Deficit) 2020-2021 Current $264,706,076 $275,850,471

$11,144,395

2020-2021 Preliminary $269,635,219 $282,498,098

$12,862,879

2019-2020 $267,208,014 $273,977,289

$6,769,275

$ Change

$2,501,938

$1,873,182

$4,375,120

% Change

0.94%

0.68%

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Fund Balance Breakdown 6/30/19

Description Amount Nonspendable (inventory & prepaid items) $343,826 Assigned for self-funded insurance $2,700,000 Committed to PSERS $16,806,523 Unassigned (7.76%) $21,264,066 Total Fund Balances $41,114,415

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Budget Scenario

Current Budget Deficit

$11,144,395

Act 1Increase - 2.60% $4,782,259 Budgetary Reserve $1,500,000 *Potential Positive Variances (0.50%) $2,671,708 Projected Ending Deficit

$2,190,428

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6.40 12.80 19.20 25.60 32.00 North Penn County Average

Tax Rates

18% Below County Average

5th Lowest in County

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Tax Scenarios

Tax Increase Additional Revenue Remaining Deficit Average Homestead Increase 0.00% $0.00 $11,144,395 $0 1.00% $1,851,607 $9,292,788 $39 1.50% $2,768,230 $8,376,165 $58 2.00% $3,694,740 $7,449,655 $77 2.60% $4,782,259 $6,362,136 $100 3.43% $6,321,734 $4,822,661 $133

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Next Steps

Direction on tax rate for proposed final budget
Refine and update data based on new information
Closely monitor EIT and transfer tax collection for

possible additional reductions

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Discussion