North Penn School District 2020-2021 Preliminary Budget January 6, - - PowerPoint PPT Presentation

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North Penn School District 2020-2021 Preliminary Budget January 6, - - PowerPoint PPT Presentation

Nov 03, 2022 110 likes •604 views

North Penn School District 2020-2021 Preliminary Budget January 6, 2020 In-N-Out Yes, Now Act 1 (Not Barometer Potpourri But What Burgers) $200 $200 $200 $200 $200 $200 $400 $400 $400 $400 $400 $400 $600 $600 $600 $600

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North Penn School District

2020-2021 Preliminary Budget January 6, 2020

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Act 1 Yes, But In-N-Out (Not Burgers) Barometer Potpourri Now What $200 $200 $200 $200 $200 $200 $400 $400 $400 $400 $400 $400 $600 $600 $600 $600 $600 $600 $800 $800 $800 $800 $800 $800 $1000 $1000 $1000 $1000 $1000 $1000

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A property tax relief bill passed by the PA legislature in 2006 which set a cap on the amount a school district can raise property taxes.

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What is Act 1?

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1/6 First Draft of Preliminary Budget Finance Committee Meeting 1/16 Preliminary Budget Adoption Referendum Exceptions Consideration Board Action Meeting 5/12 Adoption of Proposed Final Budget Board Action Meeting 6/18 Adoption of Final Budget Board Action Meeting

Budget Timeline

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Act I Index

0% 1.25% 2.5% 3.75% 5%

6

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7

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8

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9

  • 1

1

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1 1 1

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2 1 2

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3 1 3

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4 1 4

  • 1

5 1 5

  • 1

6 1 6

  • 1

7 1 7

  • 1

8 1 8

  • 1

9 1 9

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2

  • 2

1 2 1

  • 2

2 2 2

  • 2

3 2 3

  • 2

4 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% 2.6% 2.8% 3.0% 3.2%

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A school district that adopts a preliminary budget with real estate taxes that exceed its Act 1 index may seek these.

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What are exceptions?

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Act 1Exceptions

Special Education $1,784,958

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Act 1Exceptions

Retirement $0

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Act 1Exceptions

Special Education +0.97% 3.57%

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1.00 2.00 3.00 4.00 5.00 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20

Act 1 NP Tax

Act 1Index vs. NP Tax Increase

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A financial plan based on income (in) and expenses (out).

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What is a budget?

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0%

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$12.9 M

Deficit Budget

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6.96%

To Balance

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Budget Comparison

Fiscal Year Budget Revenues Expenses Surplus (Deficit) 2020-2021 $269,635,219 $282,498,098

  • $12,862,879

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

  • $6,769,275

$ Change $2,427,205 $8,520,809

  • $6,093,604

% Change 0.91% 3.11%

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Expenditure Increase Drivers

Salaries (includes placeholder for 22 new positions) $3,946,895 PSERS $1,702,802 Legal Settlements $1,000,000 Textbook Replacements $500,000 Technology Security Assessment $290,000 Charter School Tuition $475,964 Total increase in major items $7,915,661 Total expenditure increase $8,520,809 Act 1 index revenue @ 2.6% $4,786,870

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Debt 5% All Others 17% Salaries and Benefits 78%

Spending Breakdown

$282,498,098

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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 26-27

Employer Rate

Retirement Rate

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$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 20-21

Gross Retirement Expense

Retirement Expense

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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 20-21

Retirement % of Budget

Retirement as a % of Budget

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Charter Tuition Rates

$0 $8,000 $16,000 $24,000 $32,000 $40,000 15-16 16-17 17-18 18-19 19-20

$35,869 $34,912 $32,123 $31,226 $29,318 $14,416 $14,083 $13,039 $12,681 $12,216

Regular Special

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Charter School Tuition

$0 $600,000 $1,200,000 $1,800,000 $2,400,000 $3,000,000 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21

$313,683 $279,956 $2,740,016.00 $2,264,052.00 $2,734,003.00 $2,423,136.00 $2,007,432.00 $1,968,590.00 $1,772,642.00 $1,685,936.00 $1,399,879.00 $1,497,793.00 $1,472,451.00 $1,387,296.00

Expense Subsidy

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Spending Allocation by Function

6% 1% 29% 63%

Instruction Support Services Non-Instructional Support Other Expenditures and Financing

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Federal 1% All Others 10% State 21% Real Estate Taxes 68%

Revenue Breakdown

$269,635,219

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Local Revenue Allocation

4% 1% 1% 7% 87%

Real estate/interims Earned income tax (EIT) Transfer tax Delinquent tax Other

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Tax Base History

$6,800,000,000 $6,900,000,000 $7,000,000,000 $7,100,000,000 $7,200,000,000 $7,300,000,000 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21

Assessed value - Annualized increase of 0.50%

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Assessed Value Impact

Fiscal Year Assessed Value Millage Revenue @ 97% Collection 2020-21 $7,284,989,925 26.0957 $184,403,704 2019-20 $7,269,192,917 26.0957 $184,003,837 Change $15,797,008 0.22% $399,867 0.22%

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State Revenue Allocation

4% 9% 42% 9% 4% 12% 20%

Basic Ed Special Ed Transportation Property Tax Reduction Retirement Social Security Other

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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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The practice of comparing performance metrics to industry bests.

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What is benchmarking?

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6.40 12.80 19.20 25.60 32.00 North Penn County Average

Tax Rates

18% Below County Average

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Bond Rating Moody’s AA1 19 in PA

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Per Pupil Expense

$10,000 $13,750 $17,500 $21,250 $25,000 2018

$22,619 $20,040

North Penn IU Avg. The chart shows the total per pupil expenditures relative to other school districts in Montgomery County. North Penn is ranked 17 out of 21 districts.

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Instructional Expense

$5,000 $6,250 $7,500 $8,750 $10,000 2018

$9,174 $8,731

North Penn IU Avg.

The chart shows the instructional (1100 function) per pupil expenditures relative to other school districts in Montgomery County. North Penn is ranked 12 out of 21 districts.

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Special Ed. Expense

$0 $1,000 $2,000 $3,000 $4,000 $5,000 2018

$3,579 $3,621

North Penn IU Avg.

The chart shows the special programs (1200 function) per pupil expenditures relative to other school districts in Montgomery County. North Penn is ranked 9

  • ut of 21 districts.
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The Good…

  • Expiration of final lease ~ $97,000
  • No retirements as of yet ~ $1,000,000
  • Retirement rate ~ 0.64% increase
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The Good…

  • Health care 1st look rates ~ $0
  • Growth in EIT and transfer tax ~ $781,000
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The Unknowns…

  • Basic education funding ~ 3.0% increase
  • Special education funding ~ 2.6% increase
  • Federal funding ~ 0.0% increase
  • Retirements
  • Staffing changes
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Budget Scenario

Current Budget Deficit

  • $12,862,879

Act 1Increase - 2.60% $4,786,870 Special Education Exception $1,784,958 Anticipated Retirements $1,000,000 Budgetary Reserve $1,500,000 Potential Positive Variances (0.50%) $2,760,667 Projected Ending Deficit

  • $1,030,384
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0.00% 0.48% 0.96% 1.44% 1.92% 2.40% 14-15 15-16 16-17 17-18 18-19

Expenditure Variances

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0.00% 0.80% 1.60% 2.40% 3.20% 4.00% 14-15 15-16 16-17 17-18 18-19

Revenue Variances

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Tax Scenarios

Tax Increase Additional Revenue Remaining Deficit Average Homestead Increase 0.00% $0.00 $12,862,879 $0 1.00% $1,853,392 $11,009,487 $39 1.50% $2,770,899 $10,091,980 $58 2.00% $3,698,302 $9,164,577 $77 2.60% $4,786,870 $8,076,009 $100 3.57% $6,570,989 $6,291,890 $138

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Next Steps

  • Line item review of all revenues and expenses
  • 10-year capital plan prioritization
  • Staffing recommendations
  • 5-year projections
  • Refine and update data based on new information
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Discussion