Central Dauphin School District 2018-2019 Budget Presenta<on #9 - PowerPoint PPT Presentation

Central Dauphin School District 2018-2019 Budget Presenta<on #9 May 7, 2018

2018-2019 Budget Timeline Post the Proposed Preliminary Budget Approve the with a tax increase including available Resolution NOT to excep@ons (1/25/2018) exceed 2.8% tax NO increase (no later than 1/25/2018) YES Adver@se a no@ce of intent to adopt the Preliminary Budget AND a no@ce to seek Adopt the BALANCED referendum excep@ons from PDE (no Preliminary Final later than 10 days prior to adop@on) Budget (no later than 5/31/2018) Approve the Preliminary Budget with a Adopt the Final tax increase including excep@ons (no Budget (no later later than 2/14/2018) than 6/30/2018)

Budget Pressures Poverty Homeless Students Special Educa@on English as a Second Language Building Needs Popula@on Growth Tax Appeals Pension

Aid Ra<os • Market Value Aid Ra@o 2014-2015 0.3494 2015-2016 0.3541 2016-2017 0.3907 2017-2018 0.3933 • Personal Income Aid Ra@o 2014-2015 0.4075 2015-2016 0.4315 2016-2017 0.4467 2017-2018 0.4403

Aid Ra<os • MV/PI Aid Ra@o – Used to calculate Act 1 Index 2014-2015 0.3726 2015-2016 0.3850 2016-2017 0.4130 2017-2018 0.4120

Aid Ra<o Comparison 0.4400 0.4200 0.4000 0.3800 0.3600 0.3400 0.3200 0.3000 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 Market Value Aid Ra@o 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Personal Income Aid Ra@o 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018.

Total Popula<on Increase Year Population Variation Student Enrollment 11800 2011-2012 10,831 11600 2012-2013 10,946 115 11400 2013-2014 10,916 -30 2014-2015 11,059 143 11200 2015-2016 11,285 226 11000 2016-2017 11,491 206 10800 2017-2018 11,675 184 10600 10400 844 Total Growth 7.8% Total Growth as a Percentage

Special Educa<on Year Population Variation Student Enrollment 2000 2011-2012 1,367 1900 2012-2013 1,468 101 1800 1700 2013-2014 1,412 -56 1600 2014-2015 1,501 89 1500 2015-2016 1,633 132 1400 2016-2017 1,756 123 1300 2017-2018 1,861 105 1200 1100 1000 494 Total Growth 36.1% Total Growth as a Percentage

Special Educa<on Special Educa3on Expenditures Total Expenditures Year Variance $31 $29 2011-2012 $ 18,079,758 2012-2013 $ 20,231,043 11.9% $27 2013-2014 $ 22,544,017 11.4% Millions $25 2014-2015 $ 25,168,947 11.6% $23 2015-2016 $ 27,969,012 11.1% $21 2016-2017 $ 29,652,481 6.0% $19 $17 $15

English Learners Year Population Variation Student Enrollment 900 2011-2012 406 800 2012-2013 420 14 700 2013-2014 434 14 600 2014-2015 485 51 500 2015-2016 497 12 400 2016-2017 607 110 300 2017-2018 823 216 200 100 417 0 Total Growth 102.7% Total Growth as a Percentage

Homeless Students Year Population Variation Student Enrollment 180 2012-2013 47 160 2013-2014 80 33 140 2014-2015 119 39 120 2015-2016 127 8 100 2016-2017 120 -7 80 2017-2018 170 50 60 40 123 Total Growth 20 261.7% 0 Total Growth as a Percentage

Staffing Levels • Legacy costs of collec@ve bargaining agreements (CBA) are fixed • Outlays as good as they can be • Star@ng salaries to a_ract good candidates • Modest annual salary increases • Healthcare premium share, co-pays, spousal coverage/surcharges • Good CBAs, but never a nega@ve cost • Budget • Without a tax increase there will need to be across the board staffing cuts • Class sizes will increase to 25-30 • Altera@on and curtailment of programs • Hiring freezes – Open posi@ons are not filled

PSERS Employer Contribu<on Rate 10 15 20 25 30 35 40 45 0 5 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

Source: June 30, 2016 PSERS Actuarial Valua@on

PSERS Stabiliza<on Account • 2013-14 $1,726,907 • 2014-15 $3,417,059 • 2015-16 $3,423,376 • 2016-17 $ 0 • 2017-18 $2,884,962 • Total Amount from Stabiliza@on $12,637,304

SWAP Transac<ons • 2009-10 $566,009 • 2010-11 $699,474 • 2011-12 $764,214 • 2012-13 $804,795 • 2013-14 $785,283 • 2014-15 $1,418,089 • Total Earnings on SWAPs $5,037,864 • Total Amount available for use $3,686,009

Debt Refinancing Series 2016: NPV Savings = $11,941,860 (16.1% of the principal refunded) Series 2016A: NPV Savings = $2,071,431 (6.8% of the principal refunded) Total Savings = $14,013,291

Debt Service/SWAP Strategy 16000000 • Applying the use of the SWAP 14000000 savings to smooth annual debt 12000000 service payments un@l they drop 10000000 in 2020-21 8000000 • $1,185,000 6000000 • $1,185,000 4000000 • $1,185,000 2000000 0

Debt Service/SWAP Strategy 16000000 16000000 14000000 14000000 12000000 12000000 10000000 10000000 8000000 8000000 6000000 6000000 4000000 4000000 2000000 2000000 0 0

Debt Restructure • Higher interest rate environment • Possible nega@ve affect on our credit ra@ng • No tax increase • Structurally unbalanced budget • Scoop refunding • Placed on nega@ve watch • Downgrade • $7 million scoop refunding • $2.5 million NPV interest cost

Funds Generated Earnings on SWAPs $5,037,864 Energy Savings $4,817,009 PSERS Stabiliza@on $12,637,304 Debt Refinancing $14,013,291 Total Funds Generated $36,505,488

Outstanding Tax Appeals • Norfolk Southern • Largest single real estate taxpayer • Annual payment $552,110 • Refund owed $1,821,351.31 • Spring Creek Nursing Home • Property was tax exempt from 2006 to 2015 • Tax phase-in agreement with Dauphin County • Dauphin County added it back onto the taxable rolls in 2015 at an assessed value of $29,384,900 • Phase-in amount between $8,400,000 and $10,500,000 • 3 rd largest real estate taxpayer has now decreased from $473,567 to $169,218 • Refund amount owed $499,815.93

Central Dauphin School District General Fund Detail Report (Actual) (Actual) (Actual) (Budget) (Projected) (Projected) (Projected) (Projected) (Projected) Home Reports 2015 2016 2017 2018 2019 2020 2021 2022 2023 Act_3 Act_2 Act_1 BudgetVar Projected_1 Projected_2 Projected_3 Projected_4 Projected_5 REVENUES LOCAL REVENUE Real Estate Taxes 14.6008 ≈ 1.98% 14.8622 ≈ 1.79% 15.2188 ≈ 2.40% 16.1160 ≈ 5.90% 16.1160 ≈ 0.00% 16.1160 ≈ 0.00% 16.1160 ≈ 0.00% 16.1160 ≈ 0.00% 16.1160 ≈ 0.00% Current Real Estate Taxes 76,188,433 79,089,698 81,717,245 87,358,297 87,185,854 87,637,444 88,091,292 88,547,409 89,005,807 Interim Real Estate Taxes 249,016 328,492 252,626 306,600 300,000 306,600 313,345 320,239 327,284 Public Utility Realty Taxes 143,849 129,906 130,123 130,000 122,000 124,684 127,427 130,230 133,096 Payments in Lieu of Current Taxes/State & Local 234,554 460,262 467,562 467,562 437,000 446,614 456,440 466,481 476,744 Total Real Estate Taxes 76,815,852 80,008,358 82,567,557 88,262,459 88,044,854 88,515,342 88,988,504 89,464,360 89,942,930 Act 511 Taxes Current Act 1 Earned Income Taxes 36,828,195 36,911,904 39,813,958 37,115,582 39,600,000 40,471,200 41,361,566 42,271,521 43,201,494 Real Estate Transfer Taxes 2,588,599 2,474,773 2,245,409 1,601,194 2,400,000 2,452,800 2,506,762 2,561,910 2,618,272 Total Act 511 Taxes 39,416,794 39,386,677 42,059,368 38,716,776 42,000,000 42,924,000 43,868,328 44,833,431 45,819,767 Other Local Revenue Delinquent on Taxes Levied/Assessed by the LEA 3,790,988 3,687,604 4,072,964 3,648,540 3,700,000 3,781,400 3,864,591 3,949,612 4,036,503 Earnings on Investments 1,482,070 81,863 144,485 81,000 200,000 204,400 208,897 213,493 218,189 Revenue From Student Activities 23,777 24,800 24,159 24,000 24,000 24,528 25,068 25,619 26,183 Rev from Intermediary Srcs/Pass-Thru Funds from Other Schls 82,900 State Revenue Received from Other Public Schools 5,415 Federal IDEA received from an IU 1,636,097 1,754,742 1,961,718 1,915,234 2,025,997 2,070,569 2,116,121 2,162,676 2,210,255 Federal Revenue Received from Other Intermediary Sources Rentals 5,400 9,650 10,551 9,650 9,862 10,079 10,301 10,528 10,759 Contributions and Donations from Private Sources 35,616 28,884 33,275 Tuition from Patrons Regular Day School Tuition 6,160 Receipts from Other LEAS in PA - Education 924,895 1,029,356 1,193,921 1,047,550 1,070,596 1,094,149 1,118,220 1,142,821 1,167,963 Services Provided Other Local Governmental Units/LEAs Refunds and Other Misc. Revenue 100,696 112,231 46,435 269,431 50,000 50,000 50,000 50,000 50,000 Refunds of Prior Years' Expenditures 16,871 197,363 52,404 45,000 45,000 45,000 45,000 45,000 45,000 Energy Efficiency Revenues and Incentives 2,058 10,840 12,279 All Other Local Revenues 1,107,255 1,632,948 2,251,553 1,650,000 2,160,000 2,207,520 2,256,085 2,305,719 2,356,445 Total Other Local Revenue 9,125,724 8,581,855 9,886,644 8,690,405 9,285,455 9,487,645 9,694,284 9,905,468 10,121,298 TOTAL LOCAL REVENUE 125,358,369 127,976,890 134,513,568 135,669,640 139,330,310 140,926,988 142,551,115 144,203,259 145,883,995