Proposed Final Budget New Hope-Solebury FY 2020-2021 School - - PowerPoint PPT Presentation

Proposed Final Budget FY 2020-2021

New Hope-Solebury School District

Offer the best quality education possible for our community’s children

Offer

Increase student achievement and growth

Increase

Provide comprehensive services to students

Provide

Align to class size guidelines

Align

Encourage professional development and professional growth

Encourage

Develop capital plan with funding strategies

Develop

FY 2020-2021

Budgetary Goals

Budgetary Process

• Sep/Oct – Budget Discussions Begin
• Jan – Board approved a preliminary

budget with a tax increase of 3.0%

• Act 1 Base Index: 2.60%
• Act 1 Exceptions: 0.40%
• Feb-May – Budget reviews with

building/department leaders.

• Enrollment/Class Size/Staffing reviews
• May – Proposed Final Budget Approval
• Budget includes a 2.6% tax increase
• June – Final Budget Approval
• Changes would include items based on

updated information

Budgetary Unknowns

• Federal Budget (Title I, II, IDEA)
• Pennsylvania State Budget
• Kindergarten enrollment
• Charter School/MBIT Enrollments
• Impact of Coronavirus Pandemic

Proposed Final Budget Highlights

Budgetary Areas 2019-2020 2020-2021 Change Expenditures 42,234,666 42,936,781 1.66% Revenues 42,234,666 42,498,455 0.62% Use of Fund Balance (438,326) Ending Unassigned Fund Balance 3,268,813 2,830,487 Fund Balance as a % of Expenditures 7.74% 6.60%

FY 2020-2021 Revenues

 Revenue Comparison – Increase of $92,382

 Tax Increase – 2.6% generates $780k in new revenue



Act 1 Index – 2.6%  Reduction in EIT and Transfer Taxes of $640K  Interest Income – Decrease of $50,000 to a total of $200,000  State Revenue – Increase of $171,407



Education Funding – Recent estimates from PDE until state budget is approved



Retirement and Social Security Subsidy increases as PSERS employer rate and salaries increase.  Federal Revenue – No change

Revenue Type 2018-2019 Actual 2019-2020 Budget 2020-2021 Budget Change % of Total Revenue 6000 Local 35,343,434 35,109,199 35,201,581 92,382 83% 7000 State 6,428,652 6,682,517 6,853,924 171,407 16% 8000 Federal 30,820 442,950 442,950

• 1%

Total 41,802,906 42,234,666 42,498,455 263,789

FY 2020 – 2021 Expenditures

Expense Type 2018-2019 Actual 2019-2020 Budget 2020-2021 Budget Increase / (Decrease) % of Total Expenses 100 Salaries 17,845,815 18,697,488 19,252,244 554,756 45% 200 Benefits 10,910,316 11,900,514 12,169,458 268,944 28% 300 Professional Services 1,975,867 2,660,418 2,564,103 (96,315) 6% 400 Property Services 371,367 411,272 409,474 (1,798) 1% 500 Other Purchased Svcs 2,795,641 3,056,933 2,998,673 (58,260) 7% 600 Supplies & Books 1,275,990 1,732,431 1,792,792 60,361 4% 700 Equipment 286,797 472,368 392,250 (80,118) 1% 800 Interest, Fees & Dues 1,139,919 1,121,742 1,156,287 34,545 3% 900 Principal & Transfers 4,106,422 2,181,500 2,201,500 20,000 5% Total 40,708,134 42,234,666 42,936,781 702,115

73% 20% 7%

Expenditures

Personnel Non-Personnel Debt Service

New Hope-Solebury Millage History

Fiscal Year Tax Rate Change Average Tax Bill Average Increase % Increase Act 1 Index

2012/2013 84.72 1.42 4,579 76 1.70% 1.70% 2013/2014 86.16 1.44 4,657 78 1.70% 1.70% 2014/2015 87.96 1.81 4,755 98 2.10% 2.10% 2015/2016 89.64 1.67 4,845 90 1.90% 1.90% 2016/2017 93.94 4.30 5,078 232 4.80% 2.40% 2017/2018 97.69 3.76 5,279 201 4.00% 2.50% 2018/2019 100.04 2.34 5,420 141 2.40% 2.40% 2019/2020 102.3418 2.30 5,542 122 2.30% 2.30% 2020/2021 105.0027 2.60 5,686 144 2.60% 2.60%

Median Assessed Value: 54,150

• FY 2012-2013 to FY 2016-2017
• Total expenditure increase of 23%
• r 4.6% per year
• Tax Rate increase of 10.8% or

2.16% per year

• FY 2017-2018 to FY 2019-2020
• Total expenditure increase of

4.7% or 1.56% per year

• FY 2020-2021
• Total expenditure increase of

1.66%

Budget History

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21

Budget History

Expenditure % Change Tax Rate % Change

FY 2020-2021 Preliminary vs Proposed Final Budget

Summary of Changes – Salary and Benefits

Expenditure Reduction / (Increase) Amount Description

Salary

• 0-

Maintains current staffing levels district wide. Includes all contracted salary increases. Medical Benefits (57,000) Preliminary Projections of 6% increase and final was 8%. Stop Loss Benefit Premium 310,000 Increased Claim limit from $25,000 to $150,000.

FY 2020-2021 Preliminary vs Proposed Final Budget

Summary of Changes – Other Functions

Expenditure Reduction / (Increase) Amount Description

Special Education – Tuition 16,000 Decrease in student programming needs Insurance (4,250) Increase due to additional Cyber Protection policy Consulting Services (22,500) Increase for Benefits Consultant’s agreement Building/Department Budgets 198,000 Reductions from reviews from January – May. No impact to programs or services.

FY 2020-2021 Proposed Final Budget

Budgetary Placeholders/Open Items

Expenditure Reduction / (Increase) Amount Description

Staffing – Enrollment Placeholder $95,000 If Kindergarten enrollment increases the recommendation would be to add an LTS teacher. Staffing – EDR Budget to Actual Trend $90,000 NHSEA contract identifies EDR’s and associated stipends. The budget includes all EDR stipends and this is the average amount under budget per year. Charter School Tuition $45,000 This amount represents charter school tuition for either 2 Regular Ed student or 1 Special Ed student. Special Education Contingency $150,000 For unknown special education costs that may arise throughout the year including new students. Revenue offset for this item. Safety & Security $100,000 Specific considerations were identified in safety audit. Budgetary Reserve $150,000 For truly unknown items that can’t be planned for.

*The total expenditure budget cannot be increased/decreased after approval. Therefore it is essential to prepare for budgetary unknowns that could have substantial impacts.

Summary

• Financial Position of the district is stable.
• Recommending approval of this Proposed

Final Budget to be put on public display

• Tax increase at the Act 1 Index – 2.6%
• Final budget will include updates if any

new information becomes available.

• This presentation only includes the

budget highlights

• Supplemental data and reports are

included in the budget packet

• Including form PDE-2028 which is

the official budget document submitted to PDE

Timeline

• May 28 –Proposed Final Budget

Approval

• Authorize Proposed Final Budget

Advertising and Public Inspection

• May 29 – Advertise and make budget

available for public inspection

• June 25 – Final Budget Adoption

Resolution

• Real Estate Tax Resolution
• Homestead/Farmstead Exclusion

Resolution

• Installment Payment of Real Estate

Tax Resolution

Capital Reserve Fund Budget

• 2018-2019 Process began for funding a Capital

Reserve Fund

• Purpose of the fund is to set funding aside for the immediate

and longer term needs for maintenance and upkeep of district facilities.

• 2018 completed a facility condition assessment that

identified 650+ projects at a total estimated cost of $37M over the next 20 years.

• Current funding available in the fund is $4.9M
• Additionally the General Fund has a committed fund balance
• f $1,760,000.
• Capital Reserve Fund does not require the same level
• f budget authorization as General Fund.
• Best practice is to complete an annual budget for this fund for

an agreed to spending plan.

• A 5 year plan has been developed and will

continuously be updated as project needs change.

• A 10 year plan is still being developed and will be

made available when complete.

District Facility / Location Project Description Estimated Amount Construction Project Close Out Campus Revitalization Project Remaining Budget $10,000 District Wide Roofing $900,000 LES Sprinkler, Full Retrofit $160,000 HS Windows $180,000 HS Replace VCT Flooring – Classrooms and Hallway $230,000 HS Asbestos Abatement – VCT flooring removal $30,000 Athletic Replace Tennis Courts $600,000 Total Estimated Amount $2,110,000

QUESTIONS?