Northeastern School District Proposed FINAL Budget Presentation - - PowerPoint PPT Presentation

Northeastern School District

Proposed FINAL Budget Presentation 2017-2018 School Year

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

Proposed Final Budget Summary

DESCRIPTION 2017-18 BUDGET SUMMARY TOTAL REVENUE $66,291,468

• TOTAL EXPENDITURES

$65,891,468 Budget surplus To budgetary reserve $ 400,000 ($ 400,000) Use of Fund Balance $ Real Estate Tax increase $ 0 Balanced budget $

2017-18 budget highlights

2015-16 budget vs. actual results

• Audit showed both revenue and expenditures under-budget adding $1.1M to fund balance.
• Therefore, increased local revenue by $650k and removed daily substitutes totaling $450k from budget.

Revenue

• Local revenue is continuing to show growth – real estate and earned income tax.
• Since state having current year deficits, did not budget Gov. proposed basic ed or special ed funding

increases.

• Did not budget for a 5

th year for the SS/HS grant.

Expenditures

• Cost drivers include

– Salary + six new positions requested + School Resource Officer funding. – Retirement: Employer rate increased by +8.5% and continuing to grow for foreseeable future. – Refinancing of debt 2 yrs ago has temporarily offset retirement increases. Debt service will be almost $200k higher next year and will increase another $100K in coming years.

• Cost savings include:

– Negotiated health insurance cost sharing and good claims experience maintains health insurance cost at 3.1% premium share increase for 2017-18.

• Budgetary reserve of $400k.

Savings

• 10.5% of general fund expenditures
• General Fund budget balanced WITHOUT use of fund balance.
• $250k transfer from general fund to capital reserve fund included in budget.

Taxation

• Budget balanced WITHOUT a real estate tax increase.

3 year Budget Forecast

• Year 1: Balanced with some use of fund balance and by year 3, a deficit even with some use of fund balance.

Board actions: Salaries

• Considered:
• Tax collector’s pay incr.
• New Staffing requests
• Classified to move to

matrix for all ranges and move 1 step.

• Confidential employees

to receive +2.4% raise

• Co- and Extra-curricular

stipend increases +2.4%.

• Decided:
• Approved Jan 2017
• Pending budget approval
• Approved April 17, 2017
• Approved April 17, 2017
• Approved April 17, 2017

Board actions: Benefits

• Considered:
• Health insurance

– Employer funding rate +3.1%. – Confidential employees’ premium share at 8.5% – Classified employee’s premium share to 7%. – In 2018-19, both premium share becomes 7.5%

• Decided:
• Approved by LBT in Jan. 17
• Board approved 4/3/17
• Board approved 4/3/17
• Board approved 4/3/17

Board actions: Other

• Considered:
• LERTA resolution with

revised exemption schedule renewed.

• Eliminating per capita

taxes

• New item requests

including:

– Add 1 public bus and 1 non- public van – 6th grade Chromebooks

• Decided:
• LERTA resolution with revised

motion failed at April 17th mtg.

• Finance committee – keep

this reoccurring revenue – consider options to replace for 2018-19.

• Transportation committee

recommendation

• Finance committee

recommendation.

$42,958,095 $22,766,040 $567,333

2017 -2018 Revenue Categories

Local State Federal

$27,468,353 17,384,160 5,482,234 15,306,722 $250,000 $400,000 650000

2017-2018 Expenditure Categories

Salary Benefits Debt Service Other Transfer to Capital Reserve Budgetary Reserve

$2,101,329 $8,946,442 $225,000 $15,000 $175,000 $5,896,388 $25,000

2017-2018 Benefit Spending Plan

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

2.5 6.96 5.95

• 2.65

5.26 3.48 5.32 3.7 2.08 2.46

• 4
• 2

2 4 6 8 A2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18

Revenue Growth % - 10 year History

Revenue Growth % - 10 year History Linear (Revenue Growth % - 10 year History)

8.7 6.8 4.9

• 2.5

1.9 4 4.1 6 4 2.5

• 4
• 2

2 4 6 8 10 A2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18

Expenditure Growth% - 10 year History

Expenditure Growth% - 10 year History Linear (Expenditure Growth% - 10 year History)

7.94 5.23 4.22 3.62 6.35 8.5 11.2 12.36 10.91 10.59 2 4 6 8 10 12 14 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18

Fund Balance % of Expenditures - 10 years

Fund Balance % of Expenditures - 10 years Linear (Fund Balance % of Expenditures - 10 years)

TAXES: District Perspective

DISTRICT Perspective Real Estate Millage Increase 1 mil = $1.4M in new reoccurring revenue Index +2.5% Adjusted Index +3.4% No Exceptions to be filed Additional Real Estate Revenue possible through tax increase $910,000 to $1,240,000 $0

TAXES: Taxpayer Perspective

TAXPAYER Perspective Real Estate Millage Increase based on assessed property value $ 100k $ 150k $ 200k Tax increase: Adjusted Index to 3.4% Real Estate Tax bill at 26.98mils w/o H/F excl +$ 89 $ 2,698 +$ 133 $ 4050 +$ 178 $ 5,396

3 year Budget Forecast

• 2017-18 base year

– balanced with budgetary reserve, without use of fund balance and no tax increase recommendation.

• 2018-19

– balanced without budgetary reserve, with use of fund balance and no tax increase.

• 2019-20

– Depends on state funding increases to determine if balanced – Uses fund balance to help try to balance.

• 2020-21

– Deficit with use of fund balance

• See handout for details

Board to consider…

For 2017-18 budget:

• Will SS/HS grant be extended into a 5

th year. If not, will district finance SRO position?

• New visitor management software being reviewed with subcommittee

– Lowest quote is $15k with $4,800 annual support fee. – Visiting nearby school to view in operation.

– Budget Approval

• Proposed final budget approved at the board meeting on April 17

th

• Board to consider approving a final budget May 15th.

For 2018-19 budget:

• Contract decisions needed by the end of 2017-18: transportation, district-wide copier,

banking services

• Research the pros and cons of joining a self funded workers’ compensation consortium.
• Consider eliminating per capita taxes and replace with increased real estate millage

through board approval or replace with a +0.1% higher earned income tax through a referendum question at the November 2017 general election. If the majority of district voters approve, the higher EIT would go into effect 7/1/2018.

Longer term:

• High School building renovations

– Board hired architect at April 17

th for master feasibility study of high school not to

exceed $36k.

• Financing and timing of capital improvement projects including artificial turf replacement

and infrastructure costs to maintain aging buildings

• Ongoing efficiency – continue to look for cost savings opportunities.

Northeastern School District Questions and Answers