Proposed Final Budget New Hope Solebury FY 2019 2020 School - - PowerPoint PPT Presentation

Proposed Final Budget FY 2019‐2020

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 2019‐2020

Budgetary Goals

Budgetary Process

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

budget with a tax increase of 2.75%

• Act 1 Base Index: 2.30%
• Act 1 Exceptions: 0.45%
• Feb‐May – Budget reviews with

building/department leaders.

• Enrollment/Class Size/Staffing reviews
• May – Proposed Final Budget Approval
• Structurally balanced budget with a 2.3% tax

increase

• June – Final Budget Approval
• Changes would only include updated

information for unknown items

Budgetary Unknowns

• Federal Budget (Title I, II, IDEA)
• Pennsylvania State Budget
• Kindergarten enrollment
• Charter School/MBIT Enrollments
• Transportation Contract/Seatbelts

Proposed Final Budget Highlights

Budgetary Areas 2018‐2019 2019‐2020 Change Expenditures 41,054,823 42,234,666 2.9% Revenues 41,054,823 42,234,666 2.9% Use of Fund Balance Ending Unassigned Fund Balance 3,268,813 3,268,813 Fund Balance as a % of Expenditures 7.96% 7.74%

FY 2019‐2020 Revenues

 Revenue Comparison – Increase of $1,179,843

 Tax Increase – 2.3% generates $700k in new revenue



Act 1 Index – 2.3%  Interest Income – Increase of $150,000 to a total of $250,000  State Revenue – Increase of $193,147



Education Funding – Flat to 18‐19 Budget until state budget is approved



Retirement and Social Security Subsidy increases as PSERS employer rate and salaries increase.  Federal Revenue – Increase of $69,051



Primarily due to the proposed usage of School Based Access Funding for increases in special education needs/costs

Revenue Type 2017‐2018 Actual 2018‐2019 Budget 2019‐2020 Final Change % of Total Revenue 6000 Local 34,634,549 34,191,554 35,109,199 917,645 83% 7000 State 6,365,485 6,489,370 6,682,517 193,147 16% 8000 Federal 86,906 373,899 442,950 69,051 1% Total 41,086,940 41,054,823 42,234,666 1,179,843

FY 2019 – 2020 Expenditures

Expense Type 2017‐2018 Actual 2018‐2019 Budget 2019‐2020 Final Increase / (Decrease) % of Total Expenses 100 Salaries 17,563,773 18,367,472 18,697,472 330,000 44% 200 Benefits 10,601,915 11,493,861 11,900,530 406,669 28% 300 Professional Services 1,955,245 2,388,796 2,660,418 271,622 6% 400 Property Services 302,106 392,525 411,272 18,747 1% 500 Other Purchased Svcs 3,009,914 3,159,875 3,056,933 (102,942) 7% 600 Supplies & Books 1,519,813 1,542,595 1,732,431 189,836 4% 700 Equipment 144,993 429,075 472,368 43,293 1% 800 Interest, Fees & Dues 1,077,759 1,144,124 1,121,742 (22,382) 3% 900 Principal & Transfers 2,790,000 2,136,500 2,181,500 45,000 5% Total 38,965,518 41,054,823 42,234,666 1,179,843

New Hope‐Solebury Millage History

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

2011/2012 83.30 1.15 4,503 62 1.39% 1.40% 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%

Median Assessed Value: 54,155

• FY 2011‐2012 to FY 2015‐2016
• Total expenditure increase of 20%
• r 4% per year
• Tax Rate increase of 8.8% or

1.76% per year

• FY 2016‐2017 to FY 2018‐2019
• Total expenditure increase of

2.9% or 1% per year

• FY 2019‐2020
• Total expenditure increase of

2.9%

Budget History

FY 2019‐2020 Preliminary vs Proposed Final Budget

Summary of Changes – Salary and Benefits

Expenditure Reduction / (Increase) Amount Description

Salary 50,000 Maintains current staffing levels district wide other than a .5 FTE reduction in HS Science. Includes all contracted salary increases. Medical Benefits 20,000 Preliminary Projections of 7% increase and final was 5%, also includes open enrollment changes Dental Benefits 13,000 Preliminary Projections of 10% and final was 4%.

FY 2019‐2020 Preliminary vs Proposed Final Budget

Summary of Changes – Other Functions

Expenditure Reduction / (Increase) Amount Description

Special Education – Tuition (272,000) Increase for student programming needs MBIT Enrollment 55,000 MBIT Final Budget based on 18.25 ADM and current projection is 12‐15. Charter School Enrollment 24,000 Reduction of 1 Charter School Student Property Insurance/Legal 30,000 Property Insurance estimates from campus revitalization were reduced. Legal was reduced based on prior 3 year averages. Building/Department Budgets 55,000 Reductions from reviews from January – May. No impacts to programs or services. Capital Improvement Plan (87,000) Current budget appropriates $330,000 for capital

• improvements. The goal is to move this line item to 1‐2% of

the overall expenditure budget ($400k ‐ $800k)

FY 2019‐2020 Proposed Final Budget

Budgetary Placeholders/Open Items

Expenditure Reduction / (Increase) Amount Description

Staffing – Enrollment Placeholder $93,000 Kindergarten enrollment is currently at xx. If enrollment reaches xx the recommendation would be to add a LTS teacher. Staffing – EDR Budget to Actual Trend $91,000 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 $46,000 This amount represents charter school tuition for either 2 regular ed students 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 will be identified in safety audit completed in April 2019. Capital Reserve/Projects $330,000 Goal is to increase this to 1‐2% of expenditure budget. 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.

33,000,000 35,000,000 37,000,000 39,000,000 41,000,000 43,000,000 45,000,000 47,000,000 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21 21‐22 22‐23

Expense to Revenue Gap Continues to Close Expense Revenue: 2% Projection Revenue: IFO Act 1

‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Fund Balance Projections

Fund Balance: 2% Projection Fund Balance: IFO Projection

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 – 2.3%
• 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 23 –Proposed Final Budget

Approval

• Authorize Proposed Final Budget

Advertising and Public Inspection

• May 24 – Advertise and make budget

available for public inspection

• June 24 – 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 $2.9M
• Estimated that an additional $2M will be available to transfer

into the fund in November 2019.

• Additionally the General Fund has a committed fund balance
• f $1,760,000.
• Completed the list of immediate projects for 2019‐

2020 and this budget reflects those needs.

• Athletic facility review is still being completed
• This budget may need to be updated once that is complete.
• 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 is still being reviewed and will be

made available when complete.

District Facility / Location Project Description Amount Construction Project Close Out Campus Revitalization Project Budget Overruns $200,000 District Wide Campus Signage including ADA Parking $25,000 UES Replace Backflow Prevention – 2 Units $10,000 UES Install Gutters and Downspouts $4,000 MS Replace Library Carpet $80,000 HS Replace 2 Boilers (removed from renovation project) $500,000 HS Replace VCT Flooring – 2nd floor (removed from project) $20,000 HS Asbestos Abatement – VCT flooring removal $30,000 HS Repair and Repoint Brickwork $5,000 Athletic Resurface Track $205,000 Athletic Replace Tennis Courts $700,000 Total Projects $1,779,000

QUESTIONS?