Proposed Final Budget New Hope-Solebury SY 2017-2018 School - PDF document

5/25/17 Proposed Final Budget New Hope-Solebury SY 2017-2018 School District • Preliminary budget for SY 2016-2017 showed a deficit of ~$4.1m A Look Back • Retirement incentive for professional and Reflecting on administrative staff members • Total retirees: 10 the Past • Approximate savings: $1m • Actual use of fund balance to balance budget: ~$1.3m 1

5/25/17 • Elimination of one administrative position (Director of Custodial Services) • Reduction of one administrative position (Director of Food Services) from 12 months to 10 months Administrative Staffing Changes • Reclassification of the Director of Human Improving Resources to Supervisor of Personnel Relations Efficiencies, • Reclassification of the Director of Pupil Services to the Director of Special Education Reducing Costs • Expansion of the Athletic Director position to include assistant principal responsibilities • Reclassification of Assistant to the Superintendent/Assistant Superintendent to Director of Education • Labor conversion of payroll services to a contracted service • Curtailment of Elementary Spanish and Middle School Family & Consumer Sciences Professional Staffing Changes Improving • Elementary health incorporated into physical education and science classes Efficiencies, • Expansion of library/technology at the elementary level Reducing Costs • Several positions eliminated by attrition (i.e. retirements, resignations) due to enrollment 2

5/25/17 Offer the best quality education possible for our Offer community’s children Increase Increase student achievement and growth SY 2017-2018 Provide Provide comprehensive services to students Budgetary Goals Align Align to class size guidelines Encourage professional development and professional Encourage growth Develop Develop a capital projects committed fund balance • Federal Budget (Title I, II, IDEA) • Pennsylvania State Budget • Charter School Enrollments and Tuition • New Hope-Solebury Education Budgetary Unknowns Association Contract Negotiations • Preparation for New Hope- Solebury Education Support Personnel Contract Negotiations • Preparation for Act 93 Meet and Discuss 3

5/25/17 Proposed Final Budget Highlights Budgetary Areas 2017-2018 2016-2017 Change Expenditures 40,322,697 40,110,960 0.5% Revenues 40,105,610 38,704,888 3.6% Use of Fund Balance 217,088 1,406,072 Ending Uncommitted Fund 2,708,861 2,925,949 Balance Fund Balance as a % of 6.7% 7.3% Expenditures SY 2017-2018 Revenues Revenue Type 2015-2016 2016-2017 2017-2018 Change % of Total Actual Budget Final Revenue 6000 Local 31,298,049 32,309,011 33,475,128 1,166,117 83% 7000 State 5,702,806 6,126,362 6,410,982 284,620 16% 8000 Federal 88,318 269,515 219,500 (50,015) 1% Total 37,089,173 38,704,888 40,105,610 1,400,722 — Revenue Comparison – Increase of $1,400,722 — Tax Increase – 4.0% generates $1.1M in new revenue — EIT Reduction - $50,000 in line with current estimates — Other Local – Increase of $50,000 for Donations — State Revenue – Increase of $284,620 Education Funding – Flat to 16-17 Budget — Retirement and Social Security Subsidy – Increase of $235,000 — — Federal Revenue – Decrease of $50,000 Reduced Special Education Contingency - Use of Medical Access Monies to cover any increased costs — 4

5/25/17 SY 2017 – 2018 Expenditures Expense Type 2015-2016 2016-2017 2017-2018 Increase/ % Total Actual Budget Budget (Decrease) Expenditures 100 Salaries 18,033,385 18,132,048 18,204,647 72,599 45.1% 200 Benefits 9,896,482 10,703,968 11,115,588 411,620 27.6% 300 Professional Services 2,043,782 2,224,688 2,022,341 (202,346) 5.0% 400 Property Services 295,507 432,085 391,886 (40,199) 1.0% 500 Other Purchased Svcs 2,948,775 3,348,823 3,447,689 98,866 8.6% 600 Supplies & Books 1,321,278 1,600,449 1,751,451 151,002 4.3% 700 Equipment 25,095 75,300 96,210 20,910 0.2% 800 Interest, Fees & Dues 630,075 971,913 1,065,386 93,473 2.6% 900 Principal & Transfers 3,194,712 2,621,686 2,227,500 (394,186) 5.5% Total 38,389,092 40,110,960 40,322,697 211,737 5

5/25/17 New Hope-Solebury Millage History Fiscal Year Tax Rate Change Average Tax Average % Increase Act 1 Index Bill Increase 2009/2010 79.84 3.14 4,537 178 4.09% 4.10% 2010/2011 82.15 2.31 4,668 131 2.90% 2.90% 2011/2012 83.30 1.15 4,733 65 1.39% 1.40% 2012/2013 84.72 1.42 4,814 80 1.70% 1.70% 2013/2014 86.16 1.44 4,896 81 1.70% 1.70% 2014/2015 87.96 1.81 4,998 102 2.10% 2.10% 2015/2016 89.64 1.67 5,093 94 1.90% 1.90% 2016/2017 93.9387 4.30 5,338 244 4.80% 2.40% 2017/2018 97.6962 3.76 5,551 213 4.00% 2.50% Millage - Bucks County Schools 2016/2017 200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 - *Source - BucksCounty.org - Government-Finance-Board of Assessment-Millage Rates **New Hope-Solebury includes millage increase for 17-18 6

5/25/17 Budget History 6.00% Budget History 5.00% • SY 2011-2012 to SY 2015-2016 4.00% • Total expenditure increase of 20% or 4% per year 3.00% • Tax Rate increase of 8.8% or 1.76% per year 2.00% • SY 2016-2017 to SY 2017-2018 1.00% • Total expenditure increase of 1.52% or 0.76% per year 0.00% 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Expenditure % Change Tax Rate % Change SY 2017-2018 Preliminary vs Proposed Final Budget Summary of Changes – Salary and Benefits Expenditure Reduction / Amount Description (Increase) Administrative Staffing Changes 217,000 HR Director to Supervisor, Director of Operations replacement, Director of Custodial and Maintenance Eliminated Teacher Retirement Incentive 143,000 3 Retirements Professional Staffing Changes 431,000 Reduction of 4 FTE – Enrollment Professional Staffing Other (217,000) 2 LTS for Known Paid Leaves, 1 FTE placeholder – class size, Mid Year Column Movements Support Staff Changes (10,000) Superintendent Admin Assist retire and replace at lower salary, PT Custodian reallocated to weekend to reduce overtime, Add Instructional Assistant for student need. ESY Staffing 31,000 ESY Staffing efficiencies. Medical Benefits 184,000 Preliminary Projections of 11.1% increase and final was 5.1%, also includes open enrollment changes 7

5/25/17 SY 2017-2018 Preliminary vs Proposed Final Budget Summary of Changes – Other Functions Expenditure Reduction / Amount Description (Increase) Needs Based Budgeting – 2 nd review of all budgets Building/Department Budgets 140,000 Transportation Efficiencies 62,000 Consolidation of non-public buses 1:1 Program Device Purchase (150,000) Purchase versus Lease saves 10,000 over 2 years Legal Costs (50,000) Contract Negotiations Donations (40,000) Received in 16-17 to expend in 17-18 Capital Improvements (47,000) 16-17 Added a placeholder to the budget for this item. Increases to 57,000 and is funded with PlanCon reimbursement Budgetary Reserve (50,000) Added 50,000 for future donations with an offsetting revenue item of 50,000 for donation receipts. Budget Projections SY 2017-2018 through SY 2020-2021 Year Revenues Expenses Deficit Ending Fund Balance 2017-2018 Preliminary (1) 40.1 M 41.0 M 0.9 M 2.7 M 2017-2018 Proposed Final (1) 40.1 M 40.3 M 0.2 M 3.4 M 2018-2019 (2) 40.7 M 41.3 M 0.6 M 2.8 M 2019-2020 (2) 41.5 M 42.5 M 1.1 M 1.8 M 2020-2021 (2) 42.2 M 43.7 M 1.5 M 0.3 M (1) – 4.0% Tax Increase (2) – 2.0% Tax Increase 8

5/25/17 Expense to Revenue Gap - Continues Trending Apart 45,000,000 43,000,000 41,000,000 39,000,000 37,000,000 35,000,000 33,000,000 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 Revenue Expense Current Fund Balance Projections Current Prelim - 17-18 Prelim - 16-17 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - (2,000,000) (4,000,000) (6,000,000) (8,000,000) (10,000,000) (12,000,000) 9

5/25/17 • Financial Position of the district continues to improve – still fragile • Recommending approval of this Proposed Final Budget to be put on public display • Final budget will include updates if any new information becomes available. Summary • This presentation only includes the budget highlights • Supplemental data and reports are included in the budget packet • Including form PDE-2028 which is the official budget document submitted to PDE • May 25 –Proposed Final Budget Adoption Resolution • Authorize Proposed Final Budget Advertising and Public Inspection • May 29 – Advertise and make budget available for public inspection Timeline • June 26 – Final Budget Adoption Resolution • Real Estate Tax Resolution • Homestead/Farmstead Exclusion Resolution • Installment Payment of Real Estate Tax Resolution 10

5/25/17 QUESTIONS? 11