Manheim Central School District Budget Presentation May 11, 2020 - PowerPoint PPT Presentation

Manheim Central School District Budget Presentation May 11, 2020 Bryan Howett, Business Manager Kelly Martin, Asst. Business Manager

2020-21 Budget Update Current Year Projections: 19-20 2019-2020 PROJECTION BUDGETED AMOUNT PROJECTED AMOUNT VARIANCE REVENUE $ 56,121,773 $ 56,518,499 $ 396,726 EXPENDITURES $ 56,131,440 $ 55,906,170 $ 225,270 SURPLUS/(DEFICIT) $ (9,667) $ 612,329 $ 621,996 2019-2020 MAJOR ITEMS CONTRIBUTING TO VARIANCE BUDGETED AMOUNT PROJECTED AMOUNT VARIANCE PLAN-CON ELEM PROJECTS $ 379,747 $ 1,080,955 $ 701,208 Received retroactive Plan-Con payments for Doe Run and Baron El projects not budgeted for. The recurring amounts are captured in the 20-21 budget. The retroactive amounts are one-time “catch-up” funds. 5/11/2020 2

2020-21 Budget Update 2020-2021 PROPOSED BUDGET AT VARIOUS MILLAGE OPTIONS Millage Rate Increase 0% 1.30% 2.60% Revenue Revenue Revenue Revenue Local Revenue $ 38,052,042 $ 38,485,969 $ 38,919,668 State Revenue $ 16,401,997 $ 16,401,997 $ 16,401,997 Federal Revenue $ 735,414 $ 735,414 $ 735,414 Total Revenues $ 55,189,453 $ 55,623,380 $ 56,057,079 Expenditures Expenditures Expenditures Expenditures Salaries $ 21,786,172 $ 21,786,172 $ 21,786,172 Benefits $ 14,066,453 $ 14,066,453 $ 14,066,453 Operating Costs $ 14,558,356 $ 14,558,356 $ 14,558,356 Fund Transfers/Debt Service $ 6,347,757 $ 6,347,757 $ 6,347,757 Total Expenditures $ 56,758,738 $ 56,758,738 $ 56,758,738 Surplus/Deficit $ (1,569,286) $ (1,135,359) $ (701,660) 5/11/2020 3

2020-21 Budget Update How would various millage rate increases impact homeowners? Effect of Millage Increase on Taxpayers Percent Tax Increase 0% 1.30% 2.60% Millage Rate 14.6613 14.8518 15.0424 Assessed Values ($) Current Tax ($) Increase New Tax Increase New Tax 250,000 3,665 $ 48 $ 3,713 $ 95 3,761 210,318 3,084 $ 40 $ 3,124 $ 80 3,164 194,600 2,853 $ 37 $ 2,890 $ 74 2,927 150,000 2,199 $ 29 $ 2,228 $ 57 2,256 100,000 1,466 $ 19 $ 1,485 $ 38 1,504 Median Homestead Value $ 194,600.00 Average Homestead Value $ 210,318.00  An increase at the 2.6% base index would increase the average home’s taxes by $80 per year.  An increase of 1.3% would increase the average home’s property tax by $40 per year. 5/11/2020 4

2020-21 Budget Update FUND BALANCE ANALYSIS Actual Actual Actual Actual Projected Proposed DESCRIPTION 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Unassigned Fund Balance Beginning of Yr $ 3,469,256 $ 3,353,017 $ 3,474,376 $ 4,208,836 $ 3,274,729 $ 3,885,702 Revenue: $ 49,984,797 $ 52,509,357 $ 53,318,704 $ 55,437,203 $ 56,518,499 $ 55,189,453 Local 34,331,927 36,299,034 36,996,358 38,608,533 38,938,360 38,052,042 State & Federal 15,652,871 16,210,323 16,322,346 16,828,670 17,580,139 17,137,411 Expenses $ 47,963,211 $ 50,875,169 $ 51,370,256 $ 56,447,518 $ 55,906,170 $ 56,758,738 Net Change in Fund Balance $ 2,021,586 $ 1,634,188 $ 1,948,448 $ (1,010,315) $ 612,329 $ (1,569,286) Unassigned Fund Balance $ 3,353,017 $ 3,474,376 $ 4,208,836 $ 3,274,729 $ 3,885,702 $ 2,316,416 Restricted, Committed & Assigned FB $ 12,808,036 $ 14,320,864 $ 15,534,852 $ 15,458,644 $ 15,460,000 $ 15,460,000 Non-spendable 108,036 120,864 234,852 158,644 160,000 160,000 Committed for PSERS 3,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Assigned/Committed for Capital Projects 4,900,000 7,200,000 8,300,000 8,300,000 8,300,000 8,300,000 Committed for Debt Service 4,800,000 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Total Fund Balance $ 16,161,053 $ 17,795,240 $ 19,743,688 $ 18,733,373 $ 19,345,702 $ 17,776,416 5/11/2020 5

2020-21 Budget Update 5/11/2020 6

2019-20 Budget Update 5/11/2020 7

2020-21 Budget Update Actual Actual Actual Actual Actual Actual Actual Actual Projected Proposed 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Local Revenue $ 30,114,053 $ 30,993,003 $ 31,946,560 $ 33,238,519 $ 34,331,927 $ 36,299,034 $ 36,996,358 $ 38,608,533 $ 38,938,360 $ 38,052,042 State Revenue $ 11,824,039 $ 12,132,619 $ 12,644,111 $ 13,267,413 $ 14,079,019 $ 14,662,100 $ 15,115,017 $ 16,008,460 $ 16,784,369 $ 16,401,997 Federal Revenue $ 615,808 $ 1,629,870 $ 1,312,901 $ 1,863,541 $ 1,573,852 $ 1,548,223 $ 1,207,329 $ 820,209 $ 795,770 $ 735,414 Total Revenue $ 42,553,899 $ 44,755,492 $ 45,903,572 $ 48,369,472 $ 49,984,797 $ 52,509,357 $ 53,318,704 $ 55,437,203 $ 56,518,499 $ 55,189,453 $ Increase $ 2,201,592 $ 1,148,080 $ 2,465,900 $ 1,615,325 $ 2,524,560 $ 809,347 $ 2,118,498 $ 1,081,296 $ (1,329,046) % Increase 5.17% 2.57% 5.37% 3.34% 5.05% 1.54% 3.97% 1.95% -2.35% 5/11/2020 8

2020-21 Budget Update Percentage Breakdown of Revenue Sources 5/11/2020 9

2020-21 Budget Update LOCAL REVENUE SOURCES Projected Proposed Description of Source 2019-2020 2020-2021 Current Real Estate Tax $ 32,500,000 $ 32,576,477 Interim Real Estate Tax $ 350,000 $ 310,000 Public Utilities Realty Tax $ 32,528 $ 33,000 Pay in Lieu of Taxes $ 2,985 $ 2,985 Earned Income taxes $ 3,250,000 $ 2,958,000 Transfer Taxes $ 575,000 $ 522,500 Delinquent Real Estate Tax $ 500,000 $ 550,000 Interest and Dividends $ 500,000 $ 105,000 Activities and Athletics $ 83,000 $ 76,300 Federal IDEA Passthrough $ 517,635 $ 500,000 Federal Revenue Local Sources $ 90,000 $ 90,000 Rental Income $ 15,000 $ 15,000 Proposed revenues from RE Tuition $ 40,000 $ 50,000 Taxes accounts for 85.61% of Miscellaneous Revenue $ 482,212 $ 262,780 local revenue and 59.03% of All Local Revenue Sources $ 38,938,360 $ 38,052,042 all MCSD revenue. Numbers above are calculated with a 0% millage increase resulting in a projected decrease in local revenue Year over Year. 5/11/2020 10

2020-21 Budget Update School Year 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 Act 1 4.70% 4.10% 5.30% 4.80% 3.40% 1.40% 1.70% 1.70% 2.10% 1.90% 2.40% 2.50% 2.40% 2.30% 2.60% MCSD 4.70% 0.00% 2.00% 2.00% 2.50% 1.00% 1.70% 1.70% 1.25% 1.00% 2.40% 0.00% 2.40% 2.30% 0.00% Millage Rate 15.24 15.24 15.54 15.85 16.25 16.41 16.6889 16.9726 17.1848 17.3566 17.7731 17.7731 14.3317 14.6613 14.6613 5/11/2020 11

2020-21 Budget Update Millage Decisions impact future years in a compounding fashion CUMULATIVE EFFECT OF TAXING UNDER ACT 1 INDEX (Since 2016-17) MILLS REVENUE AT ACTUAL TAX IF ACT 1 EVERY ANNUAL EFFECT ON YEAR TAX INC ACT 1 Millage ASSESSMENT COLL ALLOWED MILLS YEAR REVENUE 2016-17 2.40% 2.40% 13.9958 13.9958 $2,239,309,116 96.80% 30,338,013 30,338,013 $ - 2017-18 0.00% 2.50% 13.9958 14.3457 $2,282,465,141 96.80% 30,922,688 31,695,755 $ 773,067 2018-19 2.40% 2.40% 14.3317 14.6900 $2,333,957,800 96.80% 32,379,195 33,188,674 $ 809,480 2019-20 2.30% 2.30% 14.6613 15.0279 $2,354,616,500 96.80% 33,417,043 34,252,535 $ 835,492 2020-21 0.00% 2.60% 14.6613 15.4186 $2,376,447,100 95.80% 33,378,448 35,102,513 $ 1,724,065 Cumulative Revenue Foregone $ 4,142,104 Note: Millage and Assessed value prior to 2018-19 is adjusted for re-assessment Cumulative Impact of taxing below Act 1 (projected to 24-25) District MILLS REVENUE AT ACTUAL TAX IF ACT 1 EVERY ANNUAL EFFECT ON YEAR TAX INC ACT 1 ASSESSMENT COLL Millage ALLOWED MILLS YEAR REVENUE 2016-17 2.40% 2.40% 13.9958 13.9958 $2,239,309,116 96.80% $ 30,338,013 $ 30,338,013 $ - 2017-18 0.00% 2.50% 13.9958 14.3457 $2,282,465,141 96.80% $ 30,922,688 $ 31,695,755 $ 773,067 2018-19 2.40% 2.40% 14.3317 14.6900 $2,333,957,800 96.80% $ 32,379,195 $ 33,188,674 $ 809,480 2019-20 2.30% 2.30% 14.6613 15.0279 $2,354,616,500 96.80% $ 33,417,043 $ 34,252,535 $ 835,492 2020-21 0.00% 2.60% 14.6613 15.4186 $2,376,447,100 95.80% $ 33,378,448 $ 35,102,513 $ 1,724,065 2021-22 3.10% 3.10% 15.1158 15.8966 $2,394,270,453 96.00% $ 34,743,661 $ 36,538,242 $ 1,794,581 2022-23 3.20% 3.20% 15.5995 16.4053 $2,412,227,482 96.00% $ 36,124,375 $ 37,990,272 $ 1,865,897 2023-24 3.30% 3.30% 16.1143 16.9466 $2,430,319,188 96.00% $ 37,596,353 $ 39,538,280 $ 1,941,928 2024-25 3.40% 3.40% 16.6622 17.5228 $2,448,546,582 96.00% $ 39,166,188 $ 41,189,201 $ 2,023,013 Note: Millage and Assessed value prior to 2018-19 is adjusted for re-assessment Cumulative Revenue foregone $ 11,767,523 5/11/2020 12