Susquehanna Twp. School District 2016-17 Preliminary Expenditure Budget

8/20/2019 Susquehanna Twp. School District 2016-17 Preliminary Expenditure Budget

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SUSQUEHANNA TOWNSHIP

SCHOOL DISTRICT

Overview of 2016

-

2017

Preliminary General

Fund Budget

(Expenditure Focus)



Budget Development Considerations

2

• Early in 2016-2017 Budget Process – Only ended 1st Qtr.of 15-16 fiscal year

• Administrator Budgets have not yet been received – DueDecember 11, 2015

• Audited 14-15 fiscal year financial statements are not yetavailable

• Difficult to make final projections at this point in thefiscal year

• 2016-2017 Expenditure projections will continue tochange throughout the budget development process



2016 -2017 Expenditure Composition

3

A. 100 & 200 – Wages & BenefitsB. 300 – CAIU, Professional Development, and Teacher Substitute Costs.C. 500 – Student Transportation and Out of District Student Tuition Costs.

D. 800 & 900 – Debt Service Costs.



2016-2017 Fiscal Year Spending Plan Increase

4

A. Overview of additional funds necessary to meet 16-17 spending planB. $2.4 million in new money – 5% IncreaseC. Increase approximately $1.0 million less than last year this time.

DESCRIPTION AMOUNT

2016-2017 F.Y. PRELIMINARY GF OPERATING BUDGET $50,372,904

2015-2016 F.Y CURRENT GF OPERATING BUDGET $47,972,923

$ VALUE OF PRELIMINARY BUDGET INCREASE $2,399,981

% VALUE OF PRELIMINARY BUDGET INCREASE 5.00%



2016-2017 Budgetary Pressure Points

• Distr ict Salary Contracts – Professional Staff (STEA)

– Support Staff (STESPA)

– Custodial & Maintenance Staff (Teamsters)

– Act 93 (Administrative) & Other Staff

• Mandated Pennsylvania Schools Employee Retirement(PSERS) Contributions

• Medical Insurance Cost

• CAIU & Out of District Tuition Students

5



Financial Impact – Preliminary Salaries

6

• Total Salaries Increase

– Staff Contracts

• Instructional

• Non-Instructional

– Stipends

$630,029

A. Total wage increase requires an additional $630,029. Staff contracts ranging from 2.60% to 3.85% drive $530,029 Approximately $100,000 to realign budget to address Stipends costs.



PSERS Employer Contribution Rates

7

A. 10 Year Analysis of PSERS rates. Escalate at record pace.B. 16-17 rate set by the Commonwealth at29.69%; 3.85% increase over current year.C. 16-17 Employer required to pay 29.69 cents on every dollar of PSERS eligible wages.D. 17-18 rate stabilization at 30.25% representing only .56% increase.



5 Year Review of Employer Retirement Contributions

8

Fiscal Year Basis PSERS Rate PSERS Cost2012-2013 Actual 12.36% $2,413,011

2013-2014 Actual 16.93% $3,212,339

2014-2015 Actual Unaudited 21.40% $3,947,462

2015-2016 Budget 25.84% $5,181,575 INCREASE

2016-2017 Preliminary Budget 29.69% $6,133,072 $951,497

Amount

$20,657,029

29.69%

$6,133,072

2016-2017

Preliminary Salaries:

PSERS Rate:

Anticipated PSERS Cost:

A. 16-17 Budget requires the inclusion of an additional$951,497 to fund PSERS.B. Over the past 5 years the district has added $3.72 million to its GF Budget to fund

PSERS costs.



5 Year Review of Medical Insurance Cost

9

Description

2012-2013

Actual

Audited

2013-2014

Actual

Audited

2014-2015

Actual

Unaudited

2015-2016

Budget

2016-2017

Preliminary

Budget

Medical Insurance Payments $3,289,150 $4,151,177 $4,333,312 $4,802,876 $5,187,106

% Increase/(Decrease) -4.25% 26.21% 4.39% 10.84% 8.00%

$ Value Increase/(Decrease) ($145,878) $862,027 $182,135 $469,564 $384,230

A. 16-17 Medical Insurance Budget currently based on a8% anticipated increase.B. Fully Insured Plan with a Health Reimbursement Arrangement (HRA).C. In 15-16 (Current Year) - 1st Quarter 2015 Data – Trending @ 6.25% increase over 14-15

Medical Insurance Cost.



5 Year Review – Comparison of Salaries/Benefits

10

2012-2013 - It cost the STSD 40 cents per salary dollar for employee benefits.

2016-2017 - It cost the STSD 65 cents per salary dollar for employee benefits.

Cost of employee benefits has practically doubled over 5 years ($7.69 to $13.62 million).

16-17 Total Salaries & Benefits cost equate to$34.28 million representing Increase

when compared to 15-16 of $2,145,511. (Well over state index max dollars).



Out of District Students Cost Impact

11

AUDITED AUDITED UNAUDITED BUDGET BUDGET Difference

Description Object 2012-2013 F.Y. 2013-2014 F.Y. 2014-2015 F.Y. 2015-2016 F.Y. 2016-2017 F.Y. Inc./(Dec.)

(CAIU) Professional Education Services 300 $872,612 $815,061 $1,087,794 $868,961 $939,033 $70,072Tuition 560 $643,069 $456,527 $316,601 $380,000 $479,147 $99,147

Tuition To Other LEAs 561 $23,078 $15,853 $20,283 $200,000 $20,034 -$179,966

Tuition To PA Charter 562 $598,673 $694,897 $1,158,347 $700,000 $829,565 $129,565

Tuition To Area Vocational Technical School 564 $1,325,137 $1,295,987 $1,334,221 $1,372,502 $1,292,695 -$79,807

Tuition To Higher Education 566 $519,790 $520,170 $403,741 $539,138 $488,452 -$50,686

Tuition To Approved Private Schools 567 $20,690 $39,635 $32,145 $0 $31,286 $31,286

Tuition To APS 568 $434,121 $285,561 $510,597 $215,000 $416,245 $201,245

Tuition Other 569 $194,528 $333,227 $475,276 $317,858 $339,359 $21,501

IU Payment By Withholding 595 $40,433 $40,055 $40,308 $40,000 $40,869 $869

TOTAL $4,672,131 $4,496,974 $5,379,313 $4,633,459 $4,876,685 $243,226

OBJECT DESCRIPTIONS

595 - Intermediate Unit withholding payments.

569 - Other paid tuition.

Out of District Tuition & Professional Education Services Budget FootnotesNOTE 1: 2016-2017 CAIU & Out of District Tuition Preliminary Budget based on a 1.5% increase of 3 Yr. Average.

NOTE 2: Tuition To Area Vocational Technical School includes STSD share of DCTS Debt Service.

300 - Cost for students e ducated and transported by the CAIU. Additionally, district share of CAIU Operating Expenditures cost.

560 - Tuition paid to other educational agencies for STSD residents who are students at other educational agencies.

561 - Tuition paid to other districts for STSD residents who are students at other districts.

562 - Tuition paid to Charter Schools & Cyber Charter Schools for STSD residents who are students at Charter & Cyber Schools.564 - Tuition paid to Area Vocational Technical School for STSD residents who are students at DCTS (District Share of Debt Service Included).

566 - Tuition paid to Harrisburg Area Community College for STSD residents who are students at Hbg. Community College.

567 - Tuition paid to Approved Private Schools (APS) & Charter Schools for Deaf and Bl ind STSD residents who are students at APS's and Charter Schools.

568 - Tuition paid to Private Rehabilitative Institutions (PRRIs) In State & Detention Centers. Alternative Ed. also included.



Debt Service Payment Schedule

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No. YrsRemaining FISCALYEAR G.O. BondsSeries A 2012 G.O. BondsSeries 2012 G.O. BondsSeries 2011 G.O. BondsSeries 2013 G.O. BondsSeries 2014 DCTS Share2015 Issue Total DebtService

1 2015-2016 $646,401 $417,318 $574,134 $1,532,943 $298,058 $87,450 $3,556,304

2 2016-2017 $276,401 $794,543 $573,334 $1,537,793 $298,028 $113,911 $3,594,010

3 2017-2018 $274,916 $1,602,593 $571,934 $719,768 $302,978 $221,850 $3,694,039

4 2018-2019 $277,959 $1,930,893 $574,934 $392,793 $297,863 $222,145 $3,696,587

5 2019-2020 $275,684 $1,930,693 $571,584 $396,893 $297,788 $222,543 $3,695,185

6 2020-2021 $1,827,884 $379,793 $572,934 $400,211 $297,700 $222,100 $3,700,622

7 2021-2022 $2,053,984 $149,193 $572,894 $392,268 $302,600 $221,595 $3,692,534

8 2022-2023 $2,059,019 $153,010 $576,525 $393,205 $297,200 $221,902 $3,700,8619 2023-2024 $383,906 $1,821,630 $573,850 $398,129 $297,000 $221,789 $3,696,304

10 2024-2025 $0 $2,211,840 $575,000 $392,328 $296,800 $222,517 $3,698,485

11 2025-2026 $0 $0 $348,400 $449,628 $2,396,600 $222,134 $3,416,762

12 2026-2027 $0 $0 $0 $449,696 $2,747,400 $222,569 $3,419,665

13 2027-2028 $0 $0 $0 $448,470 $2,750,800 $221,890 $3,421,160

14 2028-2029 $0 $0 $0 $222,116 $222,116

15 2029-2030 $0 $0 $0 $221,999 $221,999

16 2030-2031 $0 $0 $0 $222,138 $222,138

$8,076,154 $11,391,506 $6,085,523 $7,904,125 $10,880,815 $3,310,648 $47,648,771TOTALS

5 STSD Bond Issues & 1 DCTS Bond Issue

A. Overview of existing Debt Portfolio.5 STSD Bond Issues and 1 DCTS Bond Issue.B. Total outstanding debt due is $47.65 million.C. Debt retirements begin in 2023-2024 and conclude in 2030-2031.



Annual Debt Service Impact/Fluctuation

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2025-2026 - $281,723 reduction in annual debt service payment. 2028-2029 - $3,199,044 reduction in annual debt service payment. 2030-2031 – Final debt service payment on existing debt.



Overview of 2016-2017 Preliminary Expenditures(Service Area/Commodity)

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A. Overview of G.F. budget by major object.B. Total increase equates to approximately $2.4 million or 5%.C. Drivers: Salaries & Benefits, Professional & Technical Services, and Other Purchased Services.D. $125,000 - Funds reclassified from object 600 (Supplies) to object 300 (Professional &

Technical Services) to accommodate for anticipated increases in professional development.

EXPENDITURES2015-2016

BUDGET

2016-2017

PRELIMINARYBUDGET

$ VALUE

INCREASE/(DECREASE)

% VALUE

INCREASE/(DECREASE)

100 - Salaries $20,027,000 $20,657,029 $630,029 3.15%

200 - Benefits $12,104,970 $13,620,452 $1,515,482 12.52%

300 - Purchased Professional & Technical Services $2,386,303 $2,581,375 $195,072 8.17%

400 - Purchased Property Services $1,281,967 $1,281,967 $0 0.00%

500 - Other Purchased Services $6,434,329 $6,607,483 $173,154 2.69%

600 - Supplies $1,611,942 $1,486,942 ($125,000) 8.41%

700 - Property/Equipment $557,052 $557,052 $0 0.00%

800 - Other Objects (Debt Service) $1,114,360 $1,065,604 ($48,756) 4.58%

900 - Other Financing Uses (Debt Service) $2,455,000 $2,515,000 $60,000 2.44%

TOTAL EXPENDITURES $47,972,923 $50,372,904 $2,399,981 5.00%



2016-2017 Fiscal YearPreliminary Budgetary Shortfall

15

Short fall - $4,574,607 (Without Tax Increase)



Real Estate Tax Scenarios For ConsiderationPartial Funding of Budgetary Shortfall

16

A. Budget with No Tax increase requires$4.57 million utilization of F.B.B. Budget with 2.4% increase (STSD State Index) generates $627,320 requiring a $3.95

million dollar utilization of F.B.

Option A Option B Option C Option D

Revenues/Expenditures Data No Tax Increase

Act 1 Index Max Tax Increase

(No Exceptions)


(If Exceptions Granted)

Act 1 Index Between:

Cap & Exceptions Limit


Revenues (Includes a $229,001 in Real Estate Taxes due to assessed value growth) $45,798,297 $45,798,297 $0 $0

Expenditures $50,372,904 $50,372,904 $0 $0

(Shortfall)/Surplus Pre-Tax Increase ($4,574,607) ($4,574,607) $0 $0

Additional Real Estate Tax Dollars (Millage Increase X $ Value of Mill) $0 $627,320 $0 $0

(Shortfall)/Surplus Post-Tax Increase ($4,574,607) ($3,947,287) $0 $0

Estimated Fund Balance Utilization (Budget) $4,574,607 $3,947,287 $0 $0

Revenues vs. Expenditures (Over)/Under $0 $0 $0 $0

Millage Data No Tax Increase


(No Exceptions)



Act 1 Index Max Tax

Increase (If Exceptions

2015-2016 Millage Rate 17.0200 17.0200 0.0000 0.0000

2016-2017 Millage Rate 17.0200 17.4284 0.0000 0.0000

Millage Increase 0.0000 0.4084 0.0000 0.0000

Millage % Increase 0.00% 2.40% 0.00% 0.00%

Estimated $ Value of Mill @ 93.20% Collection Rate $1,648,115.26 $1,648,115.26 $0.00 $0.00

Fund Balance Data No Tax IncreaseAct 1 Index Max Tax Increase

(No Exceptions)Act 1 Index Max Tax Increase

(If Exceptions Granted)Act 1 Index Max Tax

Increase (If Exceptions

Estimated Fund Balance (Budget) - July 1, 2016 $11,540,668 $11,540,668 $0 $0

Estimated Fund Balance Use (Budget) (General Fund) ($4,574,607) ($3,947,287) $0 $0

Estimated Fund Balance (Budget) - June 30, 2017 $6,966,061 $7,593,381 $0 $0

2016-2017 PRELIMINARY BUDGET - FINANCING SCENARIOS



General Fund & Capital Projects/Reserves Fund

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General Fund

Capital Projects &Capital ReserveFunds

A. 10 Year review of fluctuation in fund balances.B. 2007-2008 through 2013-2014 represents actual audited data.C. 2014-2015 through 2016-2017 represents budgeted data.D. 14-15 expended remainder of GOB proceeds for H.S. & TWH Projects.E. 14-15 forward budgetary deficits continue to reduce F.B.F. Budgets must ideally be balanced without fund balance utilization to address projected

trend.

$2.71

$4.57



2016-2017 Budget Development – Next Steps

• Continue exploring and reviewing costcontainment/reduction measures:

– Staff input

– Contracted services

– Supplies & equipment savings opportunities

– Staffing assessments and realignments

– Other

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Oslwen C. Anderson, Jr.

Business Manager

Susquehanna Township School District

717-657-5100

Overview of 2016-2017 Preliminary

General Fund Budget(Expenditures Focus)

Susquehanna Twp. School District 2016-17 Preliminary Expenditure Budget

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