General Fund Budget Fiscal Year 2016 1 May 12, 2015 Board Meeting - PowerPoint PPT Presentation

General Fund Budget Fiscal Year 2016 1 May 12, 2015 Board Meeting FY2016 General Fund Budget Preparation 5/12/2015

Agenda 2 • Budget Preparation - Key Dates • General Fund Revenue Projection • FY2016 Budget Proposal • General Fund Revenue & Expenditure History • FY2016 General Fund Budget Advertisement • Questions and Comments FY2016 General Fund Budget Recommendation 5/12/2015

Budget Preparation – Key Dates 3 • FEBRUARY/MARCH, 2015 Cabinet discussion of budget items and pending legislation • FEBRUARY 6, 2015 Financial overview at the annual Board retreat • MARCH 24, 2015 First budget presentation to the Board • APRIL 21, 2015 Budget work session with Board • MAY 1, 2015 Budget work session with Board • Administration’s budget recommendation to the Board MAY 12, 2015 • The Board’s tentative adoption of FY2016 budget MAY 19, 2015 • JUNE 2, 2015 Budget advertised in the legal organ • JUNE 16, 2015 Public hearing and adoption of the FY2016 General Fund Budget FY2016 General Fund Budget Recommendation 5/12/2015

FY2016 Projected General Fund Revenue 4 CITY TAX REVENUE PROJECTED COMMENT Projected overall increase in real property digest of 6%; however, a Advalorem Tax Revenue: Property Taxes, projected 2% increase in exemptions; 30% decrease in motor Motor Vehicle taxes, Title Advalorem Tax 45,583,483 vehicle digest. No increase projected in TAVT. Continued millage (TAVT) rate of 17.97. Excise taxes and real estate transactions to remain static based Other Taxes: REITT, Excise, Intangible 1,450,000 upon activity in FY15. Total City Tax Revenue 47,033,483 Projected increase of 3% ($1,437,181) over FY15 budget. STATE REVENUE PROJECTED COMMENT QBE State Funding: State allotment based upon calculated FTE and CPI reporting, less Increased state revenue for the reduction in austerity of $1.4 38,635,375 austerity and local fair share amounts; included million (38% reduction). Increase in charter funding of $33,402. projected funding for growth of 100 students. State Grants: Career Technical Grants (CTAE), Preschool Handicapped Grant, Bonds for Buses, 350,000 Projection for state grants as amount varies annually. Residential Treatment Center Total State Revenue 38,985,375 Increase of 4.6% over FY15 state revenue. OTHER REVENUE PROJECTED COMMENT Transfer In of Excel Fund Balance for 1,378,697 BOE approved 8/19/2014 Competitive Compensation Decrease of 20% overall with projected 15% decrease in tuition Tuition, Local Revenue, Earnings on 1,300,000 revenue, with modest increase in interest income, Erate and Investments, E-rate indirect cost. Total Other Revenue 2,678,697 Increase of 72% from prior year due to transfer in PROJECTED FY16 GENERAL FUND REVENUE 88,697,555 Increase of $4,235,895 or 5% from FY15 budgeted revenue FY2016 General Fund Budget Recommendation 5/12/2015

FY2016 Budget Proposal 5 ITEM # GENERAL FUND - PROPOSED ADDITIONS TO EXPENDITURES NOTES AMOUNT ($) A Human Resources Increase in certified salaries for classroom personnel for competitive alignment; $2,286,000 approved by BOE 2/10/15; Competitive Compensation Alignment - Certified Teachers A1 ** additional $791,517 due to recent changes in other metro area with Bachelor, Master, Specialist and Doctoral Degrees salary schedules; $1.379M to be transferred from Excel. 3,077,517 A2 Competitive Compensation Alignment - Other Certified Increase in certified salary schedule for non-classroom Personnel with Bachelor, Master, Specialist and Doctoral personnel for competitive alignment with other metro area Degrees districts. 319,094 4% increase for General Fund classified positions, except certain Salary Increase for Classified Personnel (except certain transportation positions whose salary schedules are being A3 Transportation positions) increased for competitiveness. 354,000 Revision of salary schedules for Bus Drivers, Master Drivers, Competitive Compensation Alignment - Transportation Dispatchers, Monitors and Field Safety Coordinators. Increase A4 Department hourly rate for competitiveness, reduction in salaried hours. 49,692 **Approved by BOE February, 2015 Subtotal of Employee Competitive Increases 3,800,303 69% of Total Proposed Increase FY2016 General Fund Budget Recommendation 5/12/2015

FY2016 Budget Proposal 6 ITEM # GENERAL FUND - PROPOSED ADDITIONS (cont'd) NOTES AMOUNT ($) A4 State Increase in Teachers Retirement System Premiums Increase in mandated employer premium. 498,000 A5 Increase in Allotments for Enrollment Growth Projected increase of of 4.75 certified for growth with 4 additional certified and 3 classified allotments in contingency, if 817,000 needed. A6 State Increase in Classified Health The legislature has proposed an increase of $1800/year per 200,000 classified employee beginning mid-year on 1/1/16. A7 ** Referral Incentive Bonus for Certified Positions $500 referral bonus for existing employees who refer 30,000 successful new certified hires; approved by BOE 2/10/15. A8** Expansion of Signing Incentives Expand signing incentives to Special Education and Foreign 14,200 Language areas; approved by BOE 2/10/15. A9 Movement of Enhanced Roles from Charter System Funds The cost of enhanced roles piloted in FY15 is being moved to 155,000 the General Fund because the pilot has been successful. A10 Middle Years Program (MYP) Coordinator at Marietta High Part-time coordinator for the MYP program at Marietta High 45,000 School School due to growth in the program. A11 Reduction of .5 Allotment at MHS Offset for .5 MYP Coordinator at MHS. (41,000) FY2016 General Fund Budget Recommendation 5/12/2015

FY2016 Budget Proposal 7 ITEM # GENERAL FUND - PROPOSED ADDITIONS (cont'd) NOTES AMOUNT ($) Addition of .5 clerical positions to assist with records processing A12 Addition of Clerical Support 97,800 at high mobility schools. A13 Reduction of two Paraprofessional Positions Reduction of two paraprofessional positions to offset the (101,750) addition of clerical support at high mobility schools. A14 Increase Work Days for MHS IB Coordinator Restoration of work days that had been reduced in prior year 4,300 budgets. A15 Competitively Adjust MHS Clerical Allotment Move allotment to exempt status for Fair Labor Standards Act 15,210 (FLSA) and increase for competitive realignment. A16 Competitively Adjust Human Resources Personnel Three positions moved to exempt status for FLSA with competitive realignment to be offset with reduction of 10,500 overtime/compensatory time. A17 Reduction in HR Overtime/Compensatory Time Savings as a result of movement to exempt status for FLSA. (6,000) A18 ** Graduate Marietta Success Center Consolidation of district resources within MHS; equipment costs to be taken from Charter funds; approved by BOE 2/10/15. 173,204 A19 ** Marietta High School Staff Allotments A reduction in Marietta High School staff allotments to offset the cost of Graduate Marietta Success Center; approved by BOE (165,438) 2/10/15. Subtotal of Human Resources Budget Increase 5,546,329 FY2016 General Fund Budget Recommendation 5/12/2015

FY2016 Budget Proposal 8 ITEM # GENERAL FUND - PROPOSED ADDITIONS (cont'd) NOTES AMOUNT ($) B Operations B1 Increase to School Nurse Contract Proposed increase to contract with Cobb Douglas Board of Health for nursing services; current contract $448,678; 29,358 proposed FY2016 contract $478,036. B2 Ombudsman Contract Renegotiation resulted in a reduction to the annual contract (60,000) amount. B3 Performance Evaluation Physicals for Transportation Initial cost for occupational physical evaluation for drivers; Employees offset in future years by reduction in workers compensation 12,000 costs; frequency of evaluations is dependent upon success of program. NET PROPOSED EXPENDITURE INCREASE AS OF 5/12/2015 5,527,687 FY2016 General Fund Budget Recommendation 5/12/2015

9 Projected FY16 General Fund Revenue $88,697,555 Approved FY15 Expenditure Budget $85,119,976 Less: Net Change in Interfund Transfers (217,838) FY15 Items Not Continued in FY16 (152,208) Plus: Proposed Expenditure Increase (as noted above) 5,527,687 Proposed FY16 Expenditure Budget $90,277,617 Proposed Use of Fund Balance ($1,580,062) FY2016 General Fund Budget Recommendation 5/12/2015