FINANCIAL AFFAIRS COMMITTEE MEETING January 7, 2020
Cheltenham Mission Statement Drawing on its cultural richness, creativity, and tradition of scholastic excellence, School District the Cheltenham School District strives to nurture each child through a wealth of academic endeavors and community partnerships that provide the skills and vision needed to lead a productive and meaningful life beyond our classroom walls. Mission & Vision Statement With a clear connection between the classroom and the world, the Cheltenham Vision School District will strive for excellence by: Statements 1. inspiring our students to develop principled and knowledgeable responses to the local, national, and global challenges of the 21st century; 2. actively engaging parents in their children’s intellectual, social, and moral education; 3. encouraging faculty and staff to continually broaden the web of connections between their academic disciplines and the world on which they depend; 4. stimulating dynamic leadership of building and district administrators; and 5. creating partnerships with community individuals, institutions, organizations, and businesses that model real-world connections for all students. 2
2019/ 2019/20 20 Cost t Sav avings ngs ü Attritional savings as of December 31, 2019 • Salaries - $337,249 • Benefits - $168,454 • $190,170 of this amount is a one time savings ü Copier Lease renewal - $12,000 ü Copier quota implementation - savings unknown at this time ü CHS 1:1 Chromebook lease renewal - $26,000 ü 2019 Debt Refinancing Plan - $323,891 - one time savings* ü Preliminary MCIU Transportation Costs - $200,000
2019/ 2019/20 20 Unan Unanti ticipat pated d Expe pendi nditur tures Currently tracking major budgeted expenditures: ü Transportation ü Special Education ü Student Services As of December 31, 2019, Transportation expenditures are projecting slightly above budget by $50,150 due to the addition of 1 non-public van • Preliminary MCIU transportation costs (2018-19 expenditures impacting the 2019-20 budget) are currently $200,000 less than prior year; MCIU administrative overhead has not been released to date • Net savings - 149,850
2019/ 2019/20 20 Unan Unanti ticipat pated d Expe pendi nditur tures Currently tracking major budgeted expenditures: ü Transportation ü Special Education ü Student Services As of December 31, 2019, Special Education has utilized 2 additional Lakeside slots. Based on the approved Lakeside contract, 10 were budgeted of which 6 were allocated for Special Education and 4 for General Education. 2 of the 4 slots will be converted into Special Education slots. Cost impact = $9,200 Funds will be transferred from within the Special Education budget to absorb the cost.
2019-20 2019-20 2019-20 Variance - Variance - Fiscal Projection Budget - $ YTD - $ Encumb $ % Year - % Year-End REVENUES Local 93,724,350 88,166,519 5,557,831 94.07% 93,724,350 State 25,097,232 8,764,745 16,332,487 34.92% 25,097,232 Federal 735,042 10,223 724,819 1.39% 735,042 Fund Balance 2,733,728 - 2,733,728 - 2,663,149 TOTAL REVENUES and FUND BALANCE 122,290,352 96,941,487 25,348,865 79.27% 50.00% 122,219,773 EXPENDITURES 100 - Salary 51,819,415 21,495,957 - 30,323,458 41.48% 51,482,166 200 - Benefits 31,099,303 13,021,788 - 18,077,515 41.87% 31,910,849* 300 – Prof/Tech Svcs 7,790,352 3,657,005 1,821,670 2,311,677 70.33% 7,790,352 400- Purchased Property Svcs 1,450,432 713,450 189,893 547,089 62.28% 1,410,000* 500 – Other Purchased Svcs 14,490,290 4,195,279 1,706,176 8,588,835 40.73% 14,293,998* 600 - Supplies 3,768,152 1,799,629 269,978 1,698,545 54.92% 3,760,000 700 - Property 168,706 86,467 47,715 34,524 79.54% 168,706 800 - Other Objects 5,352,027 3,911,663 8,948 1,431,416 73.80% 5,352,027 900 – Other Financing Uses 6,351,675 1,870,000 - 4,481,675 29.44% 6,027,784* TOTAL EXPENDITURES 122,290,352 50,751,238 4,044,380 67,494,734 44.81% 50.00% 122,219,773 Projections: * Indicates where cost savings have been applied; series 200 - Benefits reflects not applying the one time cost savings of premium holiday at $980,000
2019-20 2019-20 2019-20 Variance - Variance - Fiscal Projection Budget - $ YTD - $ Encumb $ % Year - % Year-End REVENUES Local 93,724,350 88,166,519 5,557,831 94.07% 93,724,350 State 25,097,232 8,764,745 16,332,487 34.92% 25,097,232 Federal 735,042 10,223 724,819 1.39% 735,042 Fund Balance 2,733,728 - 2,733,728 - 2,663,149 TOTAL REVENUES and FUND BALANCE 122,290,352 96,941,487 25,348,865 79.27% 50.00% 122,219,773 EXPENDITURES Salaries/Benefits 82,918,718 34,517,745 - 48,400,973 41.63% 83,393,015* Transportation 7,949,850 1,636,282 204,295 6,109,273 23.15% 7,800,000* Tuition – Cyber/Charter School 1,160,000 422,456 622,605 114,939 90.09% 1,113,558 Tuition - Other 4,433,426 1,568,891 813,868 2,050,667 53.75% 4,433,426 Debt Service 10,786,675 4,781,389 - 6,005,286 44.33% 10,462,784 Equipment/Software Platforms 968,197 794,774 106,304 67,119 93.07% 968,197 Other 14,073,486 7,029,701 2,297,308 4,746,477 66.27% 14,024,902* TOTAL EXPENDITURES 122,290,352 50,751,238 4,044,380 67,494,734 44.81% 50.00% 122,219,773 Projections: * Indicates where cost savings have been appliedSalaries/Benefits reflects not applying the one time cost savings of premium holiday at $980,000
REVENUES PROJECTED OVER TIME 130,000,000 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 120,000,000 122,290,352 120,816,065 122,219,773 122,219,773 122,219,773 110,000,000 96,941,487 100,000,000 90,598,175 90,000,000 83,091,963 79,072,985 80,000,000 70,000,000 60,000,000 53,170,837 50,000,000 August September October November December Budgeted Revenues Projected Revenues Actual Revenues
EXPENDITURES PROJECTED OVER TIME 130,000,000 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 122,290,352 122,219,773 122,219,773 122,219,773 120,816,065 110,000,000 90,000,000 70,000,000 54,795,618 47,004,698 50,000,000 35,910,494 21,950,542 30,000,000 12,768,875 10,000,000 August September October November December Budgeted Expenditures Projected Expenditures Actual Expenditures
2020 2020-21 21 Budge udget t Goal als ü Reduce budgetary dependency on Fund Balance Ø Expenditure reductions ü Continue to maximize cost efficiencies in the overall operating budget Ø Reduce re-occurring expenditures in objects 300 - 500 ü Continue to support student achievement/outcomes Ø Double down on current programs Ø Year 2 - Curriculum Plan Ø Year 5 - Strategic Plan
MPVI Aid Act 1 Adjusted CSD Year Ratio Index Act 1 Index Tax Increase 2006-07 3.90% 6.88% 2007-08 3.40% 8.49% 2008-09 4.40% 5.16% Act Ac t 1 Index 2009-10 .2761 4.10% 5.34% History Hi 2010-11 .2660 2.90% 6.01% 2011-12 .2689 1.40% 0.00% 2012-13 .2852 1.70% 0.00% 2013-14 .3174 1.70% 1.70% 2014-15 .3389 2.10% 3.26% MPVI AID 2015-16 .3555 1.90% 1.90% RATIO Determination if a 2016-17 .3645 2.40% 1.30% district’s current fiscal year Act 1 2017-18 .3870 2.50% 1.90% Index will be adjusted is based 2018-19 .4003 2.40% 2.40% upon the prior year’s 2019-20 .3997 2.30% 2.6% 2.60% MPVI Aid Ratio 2020-21 Established in July 2020 2.60% ?
2019-20 2020-21 Budget Preliminary Budget Revenues Local Current Real Estate Taxes 83,915,152 85,725,572 Act 511 Taxes 5,005,000 5,080,000 Other Local Revenue 4,804,198 4,963,350 State 25,097,232 25,013,152 Federal 735,042 635,042 Fund Balance 2,733,728 - Total Revenues 122,290,352 121,417,116 14
Re Revenue Assumptions Ø Real Estate Tax Revenue • Preliminary Certified Assessment Value from Montgomery County Board of Assessment Appeals for the 2019-2020 tax year - $1,874,801,650 • 0.05% increase from 2019-20 • Continue to monitor assessment appeals and impact on county assessment • Act 1 Index of 2.6% or 1.2552 mills will generate an additional $2,259,609 • Impact on Median Assessed homeowner ($144,290) = increase of $15.09/month or $181.12/year • Value of a mill is $1,800,185 • Every 0.10% of an increase will generate $86,908 in additional tax revenue • Every 0.10% of an increase will increase the millage rate 0.0483 mills Ø EIT trend continues between 2-2.5% growth Ø State Revenue • Reflects 2019-20 allocations Ø Federal Revenue • Reflects 2019-20 allocations 15
Expenditure 2019-20 2020-21 Object Description Budget Preliminary Budget 100 Salaries 51,819,415 51,063,249 200 Benefits 31,099,303 32,634,623 300 Prof & Tech Services 7,790,352 8,883,342 400 Purchased Property Services 1,450,432 1,457,958 500 Other Purchased Services 14,490,290 14,142,230 600 Supplies 3,768,152 4,050,406 700 Equipment 168,706 168,573 800 Other Objects 5,352,027 5,890,279 900 Other Uses of Funds 6,351,675 6,357,431 Total Expenditures 122,290,352 124,648,091 16
BUDGET DEVELOPMENT - PRELIMINARY OUTLOOK EXPENDITURES - UNKNOWN Salaries/Wages General Education • CEA contract expired June 30, 2019 • Out-of-District Tuition • BEC contract expires June 30, 2020 Charter/Cyber School Tuition • New Student Enrollment Special Education Facilities • New/additional services • Unanticipated infrastructure • Transportation repairs • Out-of-District Tuition
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