Northeastern School District Proposed FINAL Budget Presentation 2017-2018 School Year The Bobcat Way: 100% of our students will graduate and be fully prepared for post-secondary education.
Proposed Final Budget Summary DESCRIPTION 2017-18 BUDGET SUMMARY TOTAL REVENUE $66,291,468 - TOTAL EXPENDITURES $65,891,468 Budget surplus $ 400,000 To budgetary reserve ($ 400,000) Use of Fund Balance $ 0 Real Estate Tax increase $ 0 Balanced budget $ 0
2017-18 budget highlights 2015-16 budget vs. actual results Audit showed both revenue and expenditures under-budget adding $1.1M to fund balance. • Therefore, increased local revenue by $650k and removed daily substitutes totaling $450k from budget. • Revenue Local revenue is continuing to show growth – real estate and earned income tax. • Since state having current year deficits, did not budget Gov. proposed basic ed or special ed funding • increases. th year for the SS/HS grant. Did not budget for a 5 • Expenditures Cost drivers include • Salary + six new positions requested + School Resource Officer funding. – Retirement: Employer rate increased by +8.5% and continuing to grow for foreseeable future. – Refinancing of debt 2 yrs ago has temporarily offset retirement increases. Debt service will be almost – $200k higher next year and will increase another $100K in coming years. Cost savings include: • Negotiated health insurance cost sharing and good claims experience maintains health insurance cost – at 3.1% premium share increase for 2017-18. Budgetary reserve of $400k. • Savings 10.5% of general fund expenditures • General Fund budget balanced WITHOUT use of fund balance. • $250k transfer from general fund to capital reserve fund included in budget. • Taxation Budget balanced WITHOUT a real estate tax increase. • 3 year Budget Forecast Year 1: Balanced with some use of fund balance and by year 3, a deficit even with some use of fund balance. •
Board actions: Salaries • Considered: • Decided: • Tax collector’s pay incr. • Approved Jan 2017 • New Staffing requests • Pending budget approval • Classified to move to • Approved April 17, 2017 matrix for all ranges and move 1 step. • Confidential employees • Approved April 17, 2017 to receive +2.4% raise • Co- and Extra-curricular • Approved April 17, 2017 stipend increases +2.4%.
Board actions: Benefits • Considered: • Decided: • Health insurance – Employer funding rate • Approved by LBT in Jan. 17 +3.1%. – Confidential employees’ • Board approved 4/3/17 premium share at 8.5% – Classified employee’s • Board approved 4/3/17 premium share to 7%. • Board approved 4/3/17 – In 2018-19, both premium share becomes 7.5%
Board actions: Other • Considered: • Decided: • LERTA resolution with revised • LERTA resolution with motion failed at April 17 th revised exemption mtg. schedule renewed. • Finance committee – keep • Eliminating per capita this reoccurring revenue – taxes consider options to replace for 2018-19. • New item requests including: • Transportation committee – Add 1 public bus and 1 non- recommendation public van • Finance committee – 6 th grade Chromebooks recommendation.
2017 -2018 Revenue Categories $567,333 $22,766,040 $42,958,095 Local State Federal
2017-2018 Expenditure Categories 5,482,234 15,306,722 $400,000 17,384,160 650000 $250,000 $27,468,353 Salary Benefits Debt Service Other Transfer to Capital Reserve Budgetary Reserve
2017-2018 Benefit Spending Plan $25,000 $2,101,329 $5,896,388 $8,946,442 $175,000 $15,000 $225,000 Social Security Retirement Tuition Reimbursement Unemployment Compensation Workers' Compensation Health Insurance Group Life Insurance
Revenue Growth % - 10 year History 8 6.96 5.95 6 5.32 5.26 3.7 4 3.48 2.5 2.46 2.08 2 0 A2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18 -2 -2.65 -4 Revenue Growth % - 10 year History Linear (Revenue Growth % - 10 year History)
Expenditure Growth% - 10 year History 10 8.7 8 6.8 6 6 4.9 4.1 4 4 4 2.5 1.9 2 0 A2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18 -2 -2.5 -4 Expenditure Growth% - 10 year History Linear (Expenditure Growth% - 10 year History)
Fund Balance % of Expenditures - 10 years 14 12.36 12 11.2 10.91 10.59 10 8.5 7.94 8 6.35 6 5.23 4.22 3.62 4 2 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 B2016-17 B2017-18 Fund Balance % of Expenditures - 10 years Linear (Fund Balance % of Expenditures - 10 years)
TAXES: District Perspective DISTRICT Perspective Index No Exceptions Real Estate Millage Increase +2.5% to be filed 1 mil = $1.4M in new reoccurring revenue Adjusted Index +3.4% Additional Real Estate Revenue possible $910,000 to $0 through tax increase $1,240,000
TAXES: Taxpayer Perspective TAXPAYER Perspective $ 100k $ 150k $ 200k Real Estate Millage Increase based on assessed property value Tax increase: Adjusted Index to 3.4% +$ 89 +$ 133 +$ 178 Real Estate Tax bill at 26.98mils w/o H/F excl $ 2,698 $ 4050 $ 5,396
3 year Budget Forecast • 2017-18 base year – balanced with budgetary reserve, without use of fund balance and no tax increase recommendation. • 2018-19 – balanced without budgetary reserve, with use of fund balance and no tax increase. • 2019-20 – Depends on state funding increases to determine if balanced – Uses fund balance to help try to balance. • 2020-21 – Deficit with use of fund balance • See handout for details
Board to consider… For 2017-18 budget: th year. If not, will district finance SRO position? Will SS/HS grant be extended into a 5 • New visitor management software being reviewed with subcommittee • – Lowest quote is $15k with $4,800 annual support fee. – Visiting nearby school to view in operation. – Budget Approval th Proposed final budget approved at the board meeting on April 17 • Board to consider approving a final budget May 15th. • For 2018-19 budget : Contract decisions needed by the end of 2017-18: transportation, district-wide copier, • banking services Research the pros and cons of joining a self funded workers’ compensation consortium. • Consider eliminating per capita taxes and replace with increased real estate millage • through board approval or replace with a +0.1% higher earned income tax through a referendum question at the November 2017 general election. If the majority of district voters approve, the higher EIT would go into effect 7/1/2018. Longer term: High School building renovations • th for master feasibility study of high school not to – Board hired architect at April 17 exceed $36k. Financing and timing of capital improvement projects including artificial turf replacement • and infrastructure costs to maintain aging buildings Ongoing efficiency – continue to look for cost savings opportunities. •
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