Northeastern School District Preliminary Budget Presentation - - PowerPoint PPT Presentation

Northeastern School District

Preliminary Budget Presentation 2019-2020 School Year

The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.

Preliminary Budget Summary

DESCRIPTION 2019-20 BUDGET SUMMARY TOTAL REVENUE $ 71,398,000

• TOTAL EXPENDITURES
• $70,552,000

Gross surplus (rounded) $ 846,000 Use of Fund Balance Budgetary Reserve Other RE Tax increase Budget (w/o spec. request) Budget (w/ spec. requests) $ $ (400,000) $ 0 $ 446,000 $ TBD Note: Above #s include transfer to Capital Reserve Capital Improvements HS Renovations (tax increase) $ (300,000) $ (224,000)

Big Picture 2017-18 Audit results

• Summary
• Actual revenue over-budget $2.5M or

+3.87%.

• Actual expenditures were only under by

$147k or 0.22%.

• Note main areas of revenue and

expenditure results that were different from budget and prior yr actuals

• Due to a large transfer to Capital Reserve

for HS renovations, GF net position decreased by $1.1M to $10.4M.

Big Picture 2019-20 BUDGET

• Revenue

– Top increases from 2018-19 budget – Comments on local, state, and federal

• Expenditures

– Top increases from 2018-19 budget – Areas to watch this year:

• Labor negotiations with both NEA and Act 93
• Redistricting of elementary schools
• HS renovation project
• Other contracts
• Charter School tuition

Local, 46,143,049 , 65% State, $24,302,331 , 34% Federal, $728,620 , 1% Tax for HS Renovations, $224,000 , 0%

2019-20 Revenue

Local State Federal Tax for HS Renovations

• 10,000,000

20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

10 year Revenue History

6.1%

• 2.36%

5.55% 3.61% 5.62% 3.84% 6.72% 1.91%

• 0.32%

4.02%

• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

Revenue % - 10 yr History

Salary, $28,613,566 , 40% Benefits, $18,596,555 , 26% Debt Service, $5,840,786 , 8% Other, $16,877,093 , 24% Safe Schools, $100,000 , 0% Transfer to Capital Reserve, $300,000 , 1% Transfer HS renovations, $224,000 , 0% Budgetary Reserve, $400,000 , 1%

2019-20 Expenditures

Salary Benefits Debt Service Other Safe Schools Transfer to Capital Reserve Transfer HS renovations Budgetary Reserve

Salary

• By contract:

– Professional = TBD - contract expires 6/30/19 – Central Office administrators = under individual contracts – raise TBD – Act 93 Administrators = TBD – expires 6/30/19

• Budgeted but Board decides:

– Confidential = +2.3% (index) – Classified = +2.7% (avg) – move 1 step on matrix* – Co-/Extra-curricular = longevity only

• Total projected salary increase = +$877k

Group Life Insurance, $27,000 , 0% Social Security, $2,169,048 , 12% Retirement, 9,916,391 , 53% Tuition Reimbursement, $250,000 , 2% Unemployment Compensation, $10,000 , 0% Worker's Compensation, $225,000 , 1% Health Insurance, $5,999,117 , 32%

2019-20 BENEFITS

Group Life Insurance Social Security Retirement Tuition Reimbursement Unemployment Compensation Worker's Compensation Health Insurance

Benefits: Health Insurance

• Funding rate to LBT:

– As of 6/30/18, $4.5M as net position in LBT – For 2019-20, 0% medical rate offered. – Recommend funding at 3% increase

• Smooth future rate increases at 3% per year. Medical trend is

double.

• boosts fund balance at LBT for future labor negotiations – poss health

saving accounts in next contract.

• District cost at $6M (assumes +3% funding)
• Current employee cost sharing:

– Premium share = +3% increase – Deductible at $500/$1500 – Spousal surcharge at $100/mth

4.9%

• 2.5%

1.9% 3.5% 4.6% 3.6% 3.3% 4.2% 4.80% 3.37%

• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2010-11 2011-12 2012-13 2013-14 2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

Total Exp % Growth -10 yr History

3.2% 3.7% 1.6% 6.0% 3.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Salary Benefits Debt Service Other Total

Expenditure Growth % (2018-19 to 2019-20)

Series1

4.26% 3.62% 6.35% 8.54% 11.20% 12.64% 18.26% 15.86% 16.26% 16.29% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% A2010-11 A2011-12 A2012-13 A2013-14 A2014-15 A2015-16 A2016-17 A2017-18 B2018-19 B2019-20

Total Fund Balance % - 10 yr History

TAXES: District Perspective

DISTRICT Perspective Real Estate Millage Increase 1 mil = $1.4M in new reoccurring revenue Index +2.3% Adjusted Index +3.1% No Exceptions to be filed Additional Real Estate Revenue possible through tax increase $840,000 to $1,134,000 $0

TAXES: Taxpayer Perspective

TAXPAYER Perspective Real Estate Millage Increase based on assessed property value $ 100k $ 150k $ 200k Tax increase: Adjusted Index to 3.1% Real Estate Tax bill at 27.06mils w/o H/F excl +$ 81 $ 2,706 +$ 122 $ 4,059 +$ 162 $ 5,412

Board to consider…

• Salary

– Any Confidential, Classified, co-curricular, and extra-curricular raises will need board approval. – Labor negotiations begin w/ NEA and Act 93 administrators – Classified hourly rate matrix – New special staffing requests

• Benefits

– Health insurance – select funding rate of either +0% or +3% for 1/2019 LBT mtg

• Academics and Operations

– $100k of safe schools funding not yet allocated for Act 44 and ALICE. Waiting to learn results of safe schools grant (part B) submitted in October. – Contract decisions needed by the end of 2018-19:

• Questeq (technology)
• Legal services
• GF Other

– Redistricting the elementary buildings – Revenue – no added state subsidy money added to budget.

– Maintain budgetary reserve to mitigate some uncertainty.

Board to consider…

• General Fund Balance

– Keeping unassigned fund balance as a % of total budgeted expenditures between 4% - 8%. – Recommend moving any funds >8% of unassigned fund balance to Capital Reserve for future capital needs. – $2.0M of committed and assigned fund balance for use towards PSERS. Consider holding for now since PSERS continues to raise the employer rate % level.

• Other Funds

– Keeping fund balances strong in LBT for labor negotiations and HI budget forecasts – Timing and funding of new artificial turf and new high school (or major renovations) needed

• Taxes

– See the HS master plan to determine if the current annual tax increase of +0.16 mils is correct. – Caution using “budget surplus” for too many reoccurring expenditures as it may have long term tax implications. – File tax resolution or preliminary budget with exceptions

Northeastern School District Questions and Answers