2020-2021 School District Budget Development Discussion Brian D. - PowerPoint PPT Presentation

2020-2021 School District Budget Development Discussion Brian D. Russ, Superintendent Joanne M. George, Business Administrator Board of Education Meeting March 11, 2020

Agenda • East Aurora UFSD Values & Vision • Budget Development Considerations • Finance Committee Update • Tax Levy, Tax Rate and Equalization • Tax Levy Limit Calculations • 2020-2021 Long-Range Priorities • Budget Development Calendar

Budget Development We must remember: This is about more than reductions and balancing a budget. This is about determining how to best live our Values as we chart an ambitious and sustainable Vision ; upholding the integrity of our District as we strive to continue to provide excellent quality programs, environments, and experiences for our students, staff and community, both today and into the future

Considerations for the Budget Process • We are completely and unwaveringly committed to serving the interests of our students . • We are committed to exercising care and good judgment in managing the resources with which we are entrusted with, by our Community . • We are committed to conducting our business in an open, objective, and professional manner. • We are committed to constant improvement and future-focused planning.

Budget Finance Committee • 08/01/19 • Discussed 6/30/19 year-end financial information • Discussed debt service schedule and potential timing of a future capital project • Discussed Tax Certiorari claim • 11/26/19 • Discussed Tax Certiorari claim – legal update • Reviewed Budget Development Calendar • Reviewed worst case scenario for Tax Levy Limit for 2020-21 • Discussed Development of a future Facilities Time-line • Discussed Potential use of Repair Reserve

Budget Finance Committee Future Finance Committee Dates • 01/07/20 • • 2020-21 Priorities Extra Curricular Update • • Future Capital Outlay Projects Tax Cap Discussions • • Long-Range Planning Budget Assumptions review • 02/0410/20 • Tax Cap Scenarios − Use of $258,000 of Debt Service Reserve − New Legislation – BOCES Capital Exclusion • Buffalo News Article – Tax Levy, Equalization Rate and Tax Rate • 2020-21 Budget Development • 02/25/20 • Budget Development Assumptions updates/review • BOCES Participation Review • Projected 20-21 Appropriations and Revenue at this point • Budget Presentation • 03/0413/20

East Aurora Union Free School District Financial Rebuilding Total Increase: • Reserve/Fund Balance 2013-14 2016 - 17 2017 - 18 2018-19 16-17 to 17-18 - $1,677,250 • Employee Benefit 17-18 to 18-19 $1,152,550 • $922,933 $182,784 $258,458 $296,031 Accrued Liability Creation of Tax Cert Reserve: • 17-18 – Funded $270,000 • Retirement ERS $135,373 $5,253 $5,639 $85,820 18-19 – Used $208,000 Fisher Price Tax Refund • Retirement TRS $0.00 $0.00 $0.00 $80,000 18-19 – Funded $60,000 for new notice of Tax Cert • Capital Technology Reserve: • Liability + Insurance $237,532 $41,608 $41,636 $41,953 18-19 – Funded $200,000 • Capital - Project $1,131 $1,133 $151,134 $444,611 EBLAR Reserve: • 17-18 – Funded $75,000 • Repair $392,835 $393,355 $393,605 $396,659 18-19 – Funded $35,364 • Tax Cert $0.00 $0.00 $270,000 $123,754 Capital Reserve: • 17-18 – Funded $150,000 • Capital - Technology $0.00 $0.00 $0.00 $200,000 18-19 – Defunded $150,000 • Appropriated Fund 18-19 – Funded $442,494 • $980,000 $0.00 $418,148 $868,148 Balance Retirement ERS – 18-19 Funded $80,000 • Retirement TRS – 18-19 Funded $80,000 • Unappropriated Fund $636,277 $503,218 $1,265,981 $1,420,175 Debt Service Reserve – 19-20 Using $886,491 • Balance Appropriated Fund Balance – 17-18 $418,148 – 18-19 • $868,148 TOTAL $3,306,081 $1,127,351 $2,804,601 $3,957,151 Unappropriated Fund Balance at 3.91% from 1.52% • EAUFSD deemed Most Fiscally Stressed in State of New York • Debt Service Reserve $2,965,427 $1,596,675 $886,491 $1,355,704 16-17 and susceptible to stress in 17-18

HISTORICAL TOTAL FUND BALANCE ANALYSIS Unappropriated + Appropriated + Reserve Funds Fiscal Year Fund Balance East Aurora Union Free School 2008-09 $5,051,663 Total Fund Balance History 2009-10 $5,905,609 7,000,000 2010-11 $5,497,303 Most Fiscally 6,000,000 Stressed 2011-12 $5,802,860 In the State 5,000,000 2012-13 $5,663,694 * * 2013-14 $6,399,017 4,000,000 Most Fiscally Stressed 2014-15 $5,094,675 3,000,000 In the State 2015-16 $4,536,455 2,000,000 2016-17 $2,723,928 1,000,000 2017-18 $3,691,094 0 2018-19 $5,312,855 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 July 2019 $4,426,364

East Aurora Union Free School Fiscal Stress Score • EAUFSD – Three Year Fiscal Stress • 2017 – 73.3 • 2018 – 28.3 • 2020 – 10.0 • All NYS Schools 6.5 • Improving, but still need to be financially cautious January 23, 2020 December 29, 2017 December 28, 2018

Tax Levy Limit Calculation 2020-2021 Budget Planning 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Calculation Actual Actual Proposed Projected Projected Projected Real Property Tax Levy – Prior Yr $20465,729 $21,589,140 $22,550,127 $23,724,073 $24,395,350 $24,957,156 Tax Base Growth Factor 1.085 1.0090 1.0104 1.0093 1.0093 1.0093 PILOTS – Prior Year $42,850 $23,985 $12,325 $25,084 $25,836 $0 Capital Exclusion – Prior Year $0 $516,936 $846,151 $1,401,025 $1,529,206 $1,507,204 Allowable Growth Factor 1.0200 1.0200 1.0181 1.0143 1.0143 1.0143 PILOTS – New Year $23,985 $12,325 $25,084 $25,836 $0 $0 Tax Levy Limit Before Exclusions $21,072,204 $21,703,976 $22,323,048 $22,866,144 $23,449,952 $24,021,213 Capital Exclusion – New Year $516,936 $846,151 $1,401,025 $1,529,206 $1,507,204 $1,457,973 Tax Levy Limit $21,589,140 $22,550,127 $23,724,073 $24,395,350 $24,957,156 $25,479,186 Dollar Amount Change $1,123,411 $960,987 $1,173,946 $671,277 $561,805 $522,030 Percent Increase 5.49% 4.45% 5.21% 2.83% 2.30% 2.09% Tax Cap Compliant Legislative Change - BOCES Capital Exclusion = 0.4% Increase - $88,568 Tax Base Growth Factor = .99% Increase - $234,521

Tax Levy Limit Calculation Long-Range Budget Planning 2018-2019 Budget Planning Forecasted as: 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 15-16 Actual Actual Actual Projected Projected Projected Projected Projected Actual 2.56% 0.96% 6.90% 5.49% 2.74% 7.23% 1.76% 1.94% 1.78% 2019-2020 Budget Planning using $450,000 Appropriated Fund Balance Forecasted as: 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Actual Actual Actual Actual Actual Projected Projected Projected Projected 2.56% 0.96% 6.90% 5.49% 4.45% 4.75% 2.15% 2.18% 2.03% 2020-2021 Budget Planning Forecasted as: 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Actual Actual Actual Actual Actual Projected Projected Projected Projected 2.56% 0.96% 6.90% 5.49% 4.45% 5.21% 2.83% 2.30% 2.09% BOCES Capital Exclusion New Legislation

East Aurora Union Free School Tax Rate History and Projection 2017-2018 2018-2019 2019-2020 2020-2021 Tax Levy Actual Actual Actual Proposed EAUFSD $20,465,729 $21,589,140 $22,550,127 $23,724,073 2017-2018 2018-2019 2019-2020 2020-2021 Town Equalization Equalization Equalization Equalization Est. NYS has Aurora 35.00% 35.00% 32.50% Not posted New Rates Colden 41.00% 40.00% 37.00% Elma 4.28% 4.10% 4.10% Assuming 2017-2018 2018-2019 2019-2020 2020-2021 Equalization Town Actual Rate Actual Rate Actual Rate Estimated Rate Rates Remain Aurora $40.13 $42.58 $44.38 $46.22 the same and Colden $34.26 $37.26 $38.98 $40.60 1.0104% Assessment Elma $328.16 $353.52 $351.77 $366.39 Growth in Projected Rate Increases - 4.15% Aurora

Reserve Fund Planning Actual Actual Actual Actual Projected Projected Projected Projected Title 6/30/14 6/30/16 6/30/18 6/30/19 19-20 20-21 21-22 22-23 Encumbrances 127,509 197,904 0 24,606 75,000 75,000 75,000 75,000 EBLAR 922,933 602,049 258,458 296,031 296,031 296,031 296,031 296,031 135,373 4,838 5,639 85,820 85,820 85,820 85,820 85,820 ERS - Retirement TRS - Retirement 0 0 0 80,000 80,000 80,000 80,000 80,000 44,052 41,592 41,636 41,953 41,953 41,953 41,953 41,953 Liability Insurance 193,480 0 0 0 0 0 0 0 0 0 270,000 123,754 95,863 95,863 95,863 95,863 Tax Certiorari 1,131 1,133 151,134 0 0 0 0 0 Capital 2004 Technology 2019 0 0 0 200,000 200,000 225,000 250,000 275,000 0 0 0 444,611 494,611 544,611 594,611 644,611 Capital 2019 Repair 392,835 393,202 393,606 396,659 396,659 396,659 396,659 396,659 2,965,427 2,061,211 886,492 1,355,704 258,444 0 0 0 Debt Service Sub Total 4,782,740 3,301,929 2,006,965 3,049,138 2,024,381 1,840,937 1,915,937 1,990,937 Unappropriated FB 636,277 834,516 1,265,981 1,420,175 1,520,175 1,620,175 1,720,175 1,820,175 Appropriated FB 980,000 400,000 418,148 868,148 418,148 418,148 418,148 418,148 6,399,017 4,536,445 3,691,094 5,337,461 3,962,704 3,879,260 4,054,260 4,229,260 TOTAL