Wheatland-Chili Central Schools 2015-2016 Budget Development - - PowerPoint PPT Presentation

Wheatland-Chili Central Schools 2015-2016 Budget Development

General Support (Facilities) and Transportation January 26, 2015 Board of Education Meeting

District Objectives

• Build a 2015-2016 budget that:

– Supports Board of Education goals – Preserves District assets – Is fiscally responsible, reasonable, and balanced

• Build the 2015-2016 budget with future

budgets in mind:

– Assess dependence on appropriated fund balance – Thorough analysis of five-year plan for use of reserves

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Board of Education Priorities

• Encourage all students to do better.
• Improve communications and customer service.

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District’s Strategic Focus

• To provide academic excellence, which empowers all

individuals to become motivated learners.

• To provide and maintain systems to support open

communications with all stakeholders (Communication and Parent Involvement).

• To provide a competitive educational program that is

sustainable for the community (Fiscal Accountability).

• To provide systems necessary for a clean, safe, and

healthy environment to support the educational program (Operations).

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2015-2016 Budget Development Timeline

Date Presentation January 12 General Support, Community Services, Transfers, and Debt Services January 26 General Support (Facilities) and Transportation February 9 Instruction (Pupil Services, Special Education, BOCES) February 23 Instruction (Elementary, Secondary, Sports, Co- Curricular, Technology) and Employee Benefits March 9 Review Draft Budget March 23 Review Draft Budget April 13 Adoption of Proposed Budget May 11 Budget Hearing and Meet the Candidate Night May 19 Budget Vote June 16 Statewide Budget Revote Day

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Budget Views

• Areas of Expenditure
• Budget View by Function Codes

(general types of expenses)

• Three-Part Budget
• Summary View of Budget as

Required by SED Regulations

Areas of Expenditure (function codes)

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Expenditure codes are arranged by functional unit and object of expenditure. The term function refers to the primary classification and description as to purpose (what was the purpose of the expenditure). The first four digits identify the function:

• 1000 – 1999 General Support
• 2000 – 2999 Instruction
• 5000 – 5999 Transportation
• 6000 – 8999 Community Service
• 9000 – 9099 Employee Benefits
• 9700 – 9799 Debt Service
• 9900 – 9999 Interfund Transfers

Each function is further subdivided to better classify the expenditure. For example, expenditure code 1325 in the General Support function identifies the Treasurer’s Office within the financial office of the school district.

Three-Part Budget (Function Codes)

Budget Type Components Administrative Overall general support and management of the operations of the District:

• Board of Education costs
• Central and school administration
• Finance (including tax collection, purchasing, legal and auditing

expenses)

• Curriculum development
• BOCES administrative expenses

Program Largest portion of all planned expenditures for instruction and support services:

• Instructional, co-curricular, and athletic programs
• Counseling and health services
• Pupil transportation

Capital Costs associated with maintaining facilities and grounds:

• Building and equipment repairs
• Custodial and maintenance supplies
• Utilities
• Debt service

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What do we know about the 2015-2016 Budget?

Major Non-Discretionary Expenses

• Employment contract provisions to meet instructional needs

(salaries and benefits)

• Employer retirement costs, social security, unemployment

(rates as mandated)

• Debt payments (similar to mortgage payments)
• BOCES administrative costs
• Auditing services (required by law)
• Services for special education students (tuitions and related

services)

• Materials and textbooks required for instruction
• Utilities (electricity, heat, telephone, etc.)
• Transportation costs (as required by law)

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2015-2016 Proposed Base Budget (by function codes)

• General Support (Facilities) – Budget

Function Codes 1620 - 1621

Facilities Staffing (Current)

Staff Full-Time Equivalents (FTEs) Director, Facilities and Transportation 0.5 Custodians, Assistant Custodians, and Cleaners MS/HS

• T. J. Connor

AM PM 2.0 3.0 1.0 2.5 Grounds 1.5 Clerical 0.5 Shared Facilities (Monroe #2 BOCES) 0.5

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General Support – Facilities (1/20/15)

Category (1620 - 1621) Dollar Amount Operations (General Support) Building Staff and Support (salaries only) 361,074 Utilities 425,160 Custodial Supplies/Equipment 57,974 Liability Insurance 1,932 SUBTOTAL Operations $ 846,140 Maintenance (General Support) Grounds Staff (Salaries Only) 38,317 Contracted Repairs and Services 149,958 Maintenance Supplies/Equipment 57,169 SUBTOTAL Maintenance $ 245,443 TOTAL FACILITIES $ 1,091,583

Budget Category Amount Facilities % of Budget Category

General Support 1,993,875 1,091,583 (without benefits) 54.75% Proposed Based Budget – 2015-2016 17,420,959 1,271,309 (with benefits estimate*) 7.30% 13

General Support – Facilities (1/20/15)

*Benefits Estimate Salary Benefits %

399,391 179,726 45.00% Cost per square foot (459,029 square feet): $2.32 in 2014-2015 compared to $2.38 projected for 2015-2016

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2015-2016 Proposed Base Budget (by function codes)

• Transportation (Budget Function

Codes 5510 and 5530)

Transportation Staffing (Current)

Staff Full-Time Equivalents (FTEs) Director, Facilities and Transportation 0.5 Mechanics 2.0 Drivers 14.0 Monitor 1.0 plus two-hour per day assignment Clerical 0.5

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Transportation Services

Category (5510) Dollar Amount Staff and Support 504,269 Contractual (includes Nurse Services) 20,997 Insurance 33,948 Supplies 26,726 Parts 22,038 Fuel 153,750 SUBTOTAL Transportation $ 761,728 Category (5530) Dollar Amount Staff (Garage Custodial) 1,727 Contractual 38,258 Insurance 4,792 Supplies 2,030 SUBTOTAL Garage Building $ 46,807 TOTAL TRANSPORTATION AND GARAGE $ 808,535

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Budget Category Amount Transportation % of Budget Category

Transportation 808,535 808,535 (without benefits) 100.00% Proposed Base Budget – 2015-2016 17,420,959 1,036,233 (with benefits estimate*) 5.95% 17

Transportation Services Budget (as of 1/20/15)

Benefits Estimate Salary Benefits %

505,996 227,698 45.00% Per pupil costs (in-district, outside placements, private/parochial): $1,050 in 2014-2015 (751 students); $1,094 in 2015-2016 (739 students)

Transportation Fuel History

*Due to the operational risks that are inherent in the District's operations as well as the consideration of Five-Year Reserve Plan. TOTAL Gallons Cost *BUDGET 2013-14 32,241 96,276 150,000 2012-13 41,895 130,268 125,000 2011-12 39,956 123,467 150,000 2010-11 37,750 104,301 92,500 2009-10 34,709 76,647 110,000 AVG (Round) $40,000 $110,000 $125,500

Monroe 2-Orleans BOCES Bid Coordination

• f Cooperative Bids for Energy

Electricity Supply:

• 17 district and BOCES participants
• Bid period is calendar year
• Bid is opened in late October to early November
• Supply cost is commodity pricing
• For the last several years, our awarded vendor

has been Energy Cooperative of America, a non-profit ESCO (energy supply company) who has provided the lowest cost for electricity supply

Monroe 2-Orleans BOCES Bid Coordination

• f Cooperative Bids for Energy

Natural Gas Supply:

• 14 district and BOCES participants
• Bid period is fiscal year
• Bid opening dates have varied; the bid for FY15-16 will
• pen this March as we move it closer to the bid contract

period (4 years ago BOCES bid out a year ahead, and had done so for several years)

• Large accounts (SC-3) require nominating (estimating)

supply amounts by month, and subsequent balancing for

• ver/under usage to estimates
• We have the option to ‘lock-in’ supply costs for any portion
• r all of the bid, before or during the bid period
• We rely on our energy consultant for review of historical

information and review of current market conditions to supply a recommendation regarding locking in vs. ‘floating’ (paying commodity)

Both bids are scripted with the assistance of the consultant, primarily for review regarding energy regulations and his review

• f bidders to assure they are qualified suppliers. After the

consultant analyzes bids submitted, the bid award recommendations are provided by Monroe 2-Orleans BOCES to the participants. The decision in the gas bid to lock-in vs. float commodity pricing is made by a majority vote of the bid participants after weighing in on the consultant’s information and/or recommendation.

Monroe 2-Orleans BOCES Bid Coordination

• f Cooperative Bids for Energy

Budget Variables for 2015-2016 - Revenues

• Anticipating a 1.5% increase in state aid
• Allowable levy growth (tax levy limit) is at 1.56% before

exclusions (from 1.66% in 2014-2015)

• District projections are based on 3% tax levy limit
• Planned decrease in use of Reserves based on five-year

plan ($184,519):

• Decrease in use of ERS/Other Reserve from $200,000 in

2014-2015 to $150,000 in 2015-2016 ($50,000 less)

• Exhausted Debt Service Reserve in 2014-2015 through

use of $70,471

• Decrease in use of appropriated fund balance from

$326,616 in 2014-2015 to $262,568 in 2015-2016 ($64,048 less)

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Budget Variables for 2015-2016 - Expenses

• Increase in expenses from 2014-2015 to 2015-2016:
• 2.5% increase in general support, instruction (pupil

services, special education, BOCES, elementary, secondary, sports, co-curricular, technology), and pupil transportation

• 4.83% increase in benefits
• Decrease in expenses from 2014-2015 to 2015-2016:
• 22.99% decrease in Teachers Retirement System (TRS)

(from 17.53% to 13.5%)

• 9.45% decrease in Employees Retirement System (ERS)

(20.1% to 18.2%)

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What is our starting point based

• n the budget variables?
• We are limited in our ability to raise additional revenue due to

the tax levy limit

• To stay within a tax levy limit of 3%, assuming 1.5% increase

in state aid, we have $420,584 of expenses that are not covered by revenues

• The amount of this “difference” will change as
• Revenues are better defined through our tax levy limit and state aid

numbers

• Expenses are adjusted to align with revenues

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2015-16 PROP ROPOSED OSED BUDG DGET ET Summ mmar ary y of Appropr priation ation (By y Func nction) n)

Actual Expenditures Adopted Budget Adjusted Budget Proposed Base Budget Adopted vs. Proposed Base Budget Variance 2013-14 2014-15 2014-15* 2015-16 Budget Variance Amount %

General Support $ 1,774,234 $ 1,945,244 $ 1,967,781 $ 1,993,875 48,631 2.50% Instruction 8,105,851 8,022,716 8,073,006 8,320,549 297,833 3.71% Pupil Transportation 787,097 788,815 795,776 808,535 19,720 2.50% Employee Benefits 3,765,658 4,656,250 4,656,250 4,881,075 224,825 4.83% Community Services, Transfers, and Debt Services Community Service

• 1,150

1,150 1,150

• 0.00%

Debt Service/Transfers to Debt Service 1,159,735 1,233,350 1,233,350 1,380,400 147,050 11.92% Transfers to Capital/Capital Reserve Fund -

• 0.00%

Transfer to Special Aid Fund 33,140 32,650 32,650 35,375 2,725 8.35% TOTAL $ 15,625,715 $ 16,680,175 $ 16,759,963 $ 17,420,959 $ 740,784 4.44% *2014-15 Adjusted Budget increase is attributable to the $79,788 carryover encumbrances from the 2013-14 fiscal year.

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General Support 11.45% Instruction 47.76% Pupil Transportation 4.64% Employee Benefits 28.02% Community Services, Transfers, and Debt Services 8.13%

Summary by Function

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2015-2016 Budget Development Process

• Follow the approved timeline
• Work together to creatively budget for our

existing level of educational services

• Continue to review and adjust use of overtime
• Reduce supplies when possible
• Prioritize machinery replacement
• Continue to explore energy saving programs
• Work with leadership to adjust expenses

to align with revenues

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2015-2016 BUDGET DEVELOPMENT PROCESS

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February 9, 2015

• Instruction (Pupil Services,

Special Education, BOCES)