Recommended Tax Rate Fiscal Year 2017 Red Clay Consolidated School - - PowerPoint PPT Presentation

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Recommended Tax Rate Fiscal Year 2017

Red Clay Consolidated School District Jill M. Floore, Chief Financial Officer July 13, 2016

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Rate development considerations

Four rate categories:

• Current Expense

– local operating funds set by voters – last operating referendum 2015 for $0.20/.10/.05; FY17 second year of three year phase-in

• Minor Capital Improvement/Match Tax

– Local share based state authority to match existing

• r prior appropriations

– Includes Minor Capital Improvements, Technology Maintenance, Resource Teachers, and Extra Time Match.

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Rate development considerations

• Tuition

Local funds for special schools and tuition eligible programs including Meadowood, Richardson Park ILC, ELL, First State School, private placement and consortium, and Basic, Intense and Complex students in Red Clay schools or at schools outside Red Clay (i.e. Delaware Autistic Program and Delaware School for the Deaf). Services driven by student needs and required services.

• Debt Service

Local share of principal and interest payments for capital improvement bonds authorized by voters in capital referenda. FY16 was fourth and final year of phasing for 2012 major capital improvement program.

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Rate development assumptions

• 14 Del. C. §1916(d) requires Tax Warrant be submitted to

New Castle County by July 14, 2016

• Red Clay’s assessed property $5,289,173,202
• Net value of assessment increase by $46.5M or

.89% (slight increase from .66% in FY16)

• Red Clay loss to tax pool $2.0M, an increase from $1.9M

in FY16.

• Tax pool allocation factor frozen for fourth year -

unresolved issue with calculation of tuition funded

• students. Holds rate artificially lower than it would be for

Red Clay.

• Equalization formula frozen again in FY17. Formula

close to where it would be without freezing.

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FY16 Year-End and FY17 State Budget

• FY16 local operating funds balance ended at

$9,010,437 vs $8,944,499 in FY16.

• Operating Referendum eliminated deficit spending

for current year. Previous year was $5.3M.

• State Budget left districts relatively untouched.

Teacher steps were funded. A general state salary increase was funded for 1.5% effective October 1,

• 2016. OEC rate increased by 1.01% which also

directly impacts local salaries.

• WEIC as well as funding for ELL, High Poverty

and Basic K-3 special education students unaddressed in FY17 state budget.

• State budget issues continue in FY18

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Recommended Tax Rates FY2017

Includes both residential and non-residential Per $100 of assessed value Assumes 99% collection rate

Amount per average household $1,741.37, an increase of $152.19

Tax Category 2015- 2016 2016- 2017 Difference Local Tax Rate Dollar Value Current Expense $1.426 $1.526 $0.100 $78,669,301 Tuition $0.362 $0.382 $0.020 $20,002,595 Debt Service $0.146 $0.216 $0.070 $11,424,614 Match Tax $0.050 $0.050 $0.000 $2,644,587 TOTAL $1.984 $2.174 $0.190 $112,741,097

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Current Expense 1.526/100 (+$.10)

Funds operating budget. Last operating referendum 2015. FY17 second of three year phase-in plan of $.20/.10/.05.

Tax Category 2015- 2016 2016- 2017 Difference Local Tax Rate Dollar Value Current Expense $1.426 $1.526 $0.100 $78,669,301

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MCI and Match Tax .05/100 (no change)

Technology Match - $645,279 Minor Capital Improvement - $764,048 RTI/Resource Teachers - $744,641 Extra Time Match - $432,977

Tax Category 2015- 2016 2016- 2017 Difference Local Tax Rate Dollar Value Match Tax $0.050 $0.050 $0.000 $2,644,587

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Debt Service $.216/100 (+$.07)

Bond repayment schedules for 30 year Debt Service. FY17 first significant year of impact from 2012 $117M Capital Improvement Program. Reductions in previous debt offset increases in first four years. FY17 highest year and rate will begin to decrease again within 2 years.

Tax Category 2015- 2016 2016- 2017 Difference Local Tax Rate Dollar Value Debt Service $0.146 $0.216 $0.070 $11,424,614

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Tuition $0.382/100 (+$.02)

FY16 Final Budget FY16 Actual FY17 Preliminary Budget Difference from FY16 Actual % Change

REVENUE:

Opening Balance -Tuition Funds 2,158,067 2,158,067 2,145,299 (12,768)

• 0.6%

Tuition Tax 18,788,543 18,653,969 20,204,642 1,550,673 8.3% Tuition billing 1,433,574 1,889,740 1,927,535 37,795 2.0% State Revenue (1st State, Unique Alt) 1,185,871 1,226,077 1,250,599 24,522 2.0% Total Tuition Revenue 23,566,055 23,927,853 25,528,074 1,600,221 6.7% . EXPENDITURES: Tuition Payments to Other Agencies 2,925,099 2,610,140 2,687,024 76,884 2.9% Unique Alternatives/Private Placement 1,784,679 1,022,331 1,073,448 51,117 5.0% Consortium 311,740 316,375 325,866 9,491 3.0% Meadowood Program 3,450,350 4,150,350 4,850,000 699,650 16.9% Intensive Learning Centers 4,044,000 4,344,000 4,544,000 200,000 4.6% ELL/LEP 3,400,000 3,000,000 3,700,000 700,000 23.3% First State School 1,150,000 1,150,000 1,150,000 0.0% Needs-Based Special Education Funding 5,566,000 4,500,000 4,750,000 250,000 5.6% Tuition Contingency 469,714 404,093 404,093 Total Expenditures 23,101,582 21,093,196 23,484,431 2,391,235 11.3% Current Year Revenues over Expenses (1,693,594) 676,590 (101,655) (778,246)

• 115.0%

Estimated June 30 Balance 464,473 2,134,657 2,043,644 (91,013)

• 4.3%

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5 Year Tax Rates History

Includes both residential and non-residential Per $100 of assessed value

Current Debt Match Expense Service Tax 2012-2013 $1.226 $0.242 $0.136 $0.028 $1.632

• 1.81%

2013-2014 $1.226 $0.327 $0.136 $0.052 $1.741 6.68% 2014-2015 $1.226 $0.352 $0.141 $0.052 $1.771 1.72% 2015-2016 $1.426 $0.362 $0.146 $0.050 $1.984 12.03% 2016-2017 $1.526 $0.382 $0.216 $0.050 $2.174 9.58% Percent Increase TOTAL Year Tuition

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All rates – Breakdown by Percentage All Rates by Percentage

Current Expense, $1.526 , 70% Tuition, $0.382 , 18% Debt Service, $0.216 , 10% Match Tax, $0.050 , 2%

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Next Steps

• Tax rate was reviewed and recommended by

CFRC at July 12, 2016 meeting.

• Tax Warrant Delivered to New Castle County

July 14, 2016 for tax bills

• Majority of tax bills paid in Sept/Oct
• August, 2016 Board approval of FY17

Preliminary Budget

• Continued monthly Community Financial

Review Committee meetings