2015-16 Proposed Final Budget Presentation (May 11, 2015) Selinsgrove Area School District.
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Transcript of 2015-16 Proposed Final Budget Presentation (May 11, 2015) Selinsgrove Area School District.
2015-16 Proposed Final Budget Presentation (May 11, 2015)
Selinsgrove Area School District
GENERAL FUND FINANCIAL STATEMENT(Current financial position)
2013-14 Actual
2014-15 Budget
2014-15 Projected
Beginning Balance
$ 8,082,703 $ 7,846,270 $ 8,757,776
Revenues $ 37,944,959 $ 39,026,090 $ 39,183,741
Expenditures $ 35,919,886 $ 39,371,589 $ 38,130,917
Surplus/(Deficit) $ 2,025,073 $ (345,499) $ 1,052,824
Transfer out to Capital Reserve
$ (1,350,000)
$ (600,000)
Transfer out to Debt Service
$ (400,000)
Ending Balance $ 8,757,776 $ 7,500,771 $ 8,810,600
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2014-15 BUDGET SAVINGS (Current Yr.)
Adopted budget balance $(345,500) Personnel Salary Savings (2.5%) $ 269,000 Fringes/Benefit Savings $ 98,000 Medical insurance savings $ 436,000 Transportation savings $ 128,000 Facilities budget savings $ 76,000 All other department savings (net) $ 14,000 Revenues over budget $ 182,000 Not using budgetary reserve $ 195,000Total Savings (projected surplus) 2.7% $1.05 million
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TOTAL FUND BALANCES AT 6-30-15
Designations (“buckets”) Balance
Restricted - Special Ed ACCESS $ 348,981
Nonspendable - Inventory of Supplies
$ 32,709
Nonspendable – Prepaid Expenses $ 67,547
Committed – Retiree Healthcare $ 2,318,334
Committed - Future PSERS Expenses
$ 3,214,716
Committed – Educational Resources
$ 306,389
Unassigned Balance $ 2,521,924 (6.3% of budget)
TOTAL GENERAL FUND RESERVES $ 8,810,600 (23.1% of budget)
DEBT SERVICE FUND RESERVES $ 1,871,228
CAPITAL RESERVE FUND RESERVES $ 1,855,910
TOTAL ALL GOV’T FUNDS RESERVES
$ 12,537,738
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FUTURE CAPITAL RESERVE PROJECTS – Importance of maintaining a healthy Capital Reserve Fund
Project Amount Project start date
Intermediate school roof project
$ 251,700 Summer 2015
Middle school addition (total cost of $818,000 balance from food service)
$ 344,000 Summer 2015
High school bleacher replacement
$ 163,100 Summer 2015
Football field turf replacement (total cost of $313,000)
$ 247,300 as needed
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Other expenses: annual summer maintenance projects for carpeting, paving, vehicle replacement, roof restoration. Middle school HVAC system replacement, Intermediate school building controls upgrade (possible performance contract), stadium track surface replacement, renovation of science labs at MS & HS . Fund used to offset any unforeseen major equipment replacement.
2015-16 BUDGET SUMMARY FLOW OF FUNDS – GENERAL FUND
Beginning Fund Balance $ 8,810,600
Revenues (without tax increase) $39,807,709
Expenditures $41,475,773
Deficit ( $1,668,064)
Transfer in from Educational Resources Reserve
$ 125,000
Transfer in from PSERS Reserve
$ 321,472
Adj Deficit before tax increase
( $1,221,592)
Proposed 1.58 mills (2.5%) Act 1 allowable tax increase
$392,666
Operating Deficit to be covered from unassigned fund balance
( $828,926)
Ending Fund Balance $ 7,535,202
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REVENUE HIGHLIGHTS
Moderately growing local economy 1.58 mill real estate tax increase (2.5%) and a 0.6%
growth in the overall real estate base Earned Income Tax collections budgeted with a 3%
increase from proj 14-15 collections Basic education subsidy level funding (state funding
is uncertain at this point) (Gov. proposal 6.6% increase)
Special education subsidy level funding Accountability Block Grant level funding Increase in Keystone Literacy Grant Year 4 funding of
$93,000 (four year total grant funds of $2.98 million)
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2015-16 REVENUE BY SOURCE
LOCAL61%
STATE35%
FEDERAL4%
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$24.4 M
$14.2 M
$1.6 M
State averages: Local 54%, State 41%, Federal 3%, Other 2%
HISTORICAL REVENUES BY SOURCE
$-
$5
$10
$15
$20
$25
11-12 12-13 13-14 14-15 15-16
9
millions
local
state
federal
EXPENDITURE HIGHLIGHTS
Six teacher retirements at end of 14/15 school year (replacing all positions)
2.5 new teaching positions in budget – 5th grade, MS math, part-time HS gifted
Salary increases per personnel contracts – teachers 4.5% salary plus 1.65% steps, administrators 3.5%, classified 4.5%
PSERS rate increase from 21.40% to 25.84% Medical insurance premium increase of 3.8% Building and technology budgets level funded (5th year at reduced
funding)
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EXPENDITURE HIGHLIGHTS
Transfer out to debt service fund reduced by $400,000 (debt service reserves to be used)
Capital reserve transfer of $96,000 reflects Jackson-Penn rental income
New Middle school math textbook series ($125,000)
New part-time PIMS coordinator (shared service)
Total budget of $41.48 million – overall increase of $2.1 million or 5.3% from 14/15 original budget
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MAJOR EXPENDITURE INCREASES
EXPENSE INCREASE FROM 14-15 Budget
EMPLOYER SHR OF RETIREMENT EXP
$ 1,022,992 25.7%
EMPLOYEE SALARY/WAGES $ 749,580 4.1%
OTHER EMPLOYEE BENEFITS $ 145,000 2.3%
SUN TECH CONTRIBUTIONS $ 110,172 12.1%
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2015-16 EXPENDITURE ANALYSIS
Contractual/ Fixed97%
Discretionary3%
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Personnel costs, student tuition, transportation, utilities, debt service
Supplies, textbooks, equipment ,repairs, travel
HISTORICAL USE OF FUNDS
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Personnel costs make up 75% of total budget
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
11-12 12-13 13-14 14-15 15-16
Wages/ Salaries
Fringes/ Benefits
Professional Svcs
Property Svcs
Purchased Svcs
Supplies
Equipment
Debt Service
Transfers Out
FUTURE BUDGET CONCERNS Modest economic recovery producing
inadequate local and state revenue growth Act 1 index will remain low Uncertainty at the state level (supportive
Governor but reluctant legislature) New basic education funding formula Shift away from property tax towards less
predictable income and sales taxes Teacher contract ends next year 6/30/16 Unfunded Pension system - PSERS rate
increases to reach 32% of payroll
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PROJECTED PSERS RATE
4.785.64
8.6512.36
16.93
21.4025.84
29.6930.6231.56 32.23
0
5
10
15
20
25
30
35
09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Employer % Rate
PSERS Rate
16Fiscal Year
NET PSERS COST TO DISTRICT10 Year Analysis
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FUTURE BUDGET PROJECTIONS
18
GENERAL FUND PROJECTED ENDING FUND BALANCE
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PROPOSED FINAL BUDGET SUMMARY“THE BOTTOM LINE”
REVENUES (with 1.58 mill real est incr)
$40,200,375
EXPENSES ($41,475,773)
USE OF FUND BALANCE ($125,000 FROM EDUCATIONAL RESOURCES, $321,472 FROM PSERS, & $828,926 UNASSIGNED)
$ 1,275,398
MILLAGE INCREASE% INCREASE
1.58 2.5%
TOTAL MILLS 1 mill = $248,500 in revenue
64.99
INCREASE TO AVG HOMEOWNERHomestead/Farmstead credit $133
$43 ($3.59 per month)
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PRESENTATION SUMMARY (POINTS TO REMEMBER)
Financial reserves (fund balance) – very strong position in the short term
State funding is uncertain (new funding formula, tax shift away from real estate)
Significant budget challenges remain for the future – PSERS, Healthcare, teacher contract
Importance of long-term budgeting decisions and forecasting
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