Proposed Final Budget New Hope-Solebury FY 2020-2021 School - PowerPoint PPT Presentation

Proposed Final Budget New Hope-Solebury FY 2020-2021 School District

Offer the best quality education possible for our Offer community’s children Increase Increase student achievement and growth FY 2020-2021 Provide Provide comprehensive services to students Budgetary Goals Align Align to class size guidelines Encourage professional development and professional Encourage growth Develop Develop capital plan with funding strategies

• Sep/Oct – Budget Discussions Begin • Jan – Board approved a preliminary budget with a tax increase of 3.0% • Act 1 Base Index: 2.60% • Act 1 Exceptions: 0.40% • Feb-May – Budget reviews with building/department leaders. Budgetary Process • Enrollment/Class Size/Staffing reviews • May – Proposed Final Budget Approval • Budget includes a 2.6% tax increase • June – Final Budget Approval • Changes would include items based on updated information

• Federal Budget (Title I, II, IDEA) • Pennsylvania State Budget • Kindergarten enrollment Budgetary Unknowns • Charter School/MBIT Enrollments • Impact of Coronavirus Pandemic

Proposed Final Budget Highlights Budgetary Areas 2019-2020 2020-2021 Change Expenditures 42,234,666 42,936,781 1.66% Revenues 42,234,666 42,498,455 0.62% Use of Fund Balance 0 (438,326) Ending Unassigned Fund Balance 3,268,813 2,830,487 Fund Balance as a % of 7.74% 6.60% Expenditures

FY 2020-2021 Revenues 2018-2019 2019-2020 2020-2021 % of Total Revenue Type Actual Budget Budget Change Revenue 6000 Local 35,343,434 35,109,199 35,201,581 92,382 83% 7000 State 6,428,652 6,682,517 6,853,924 171,407 16% 8000 Federal 30,820 442,950 442,950 - 1% Total 41,802,906 42,234,666 42,498,455 263,789  Revenue Comparison – Increase of $92,382  Tax Increase – 2.6% generates $780k in new revenue Act 1 Index – 2.6%   Reduction in EIT and Transfer Taxes of $640K  Interest Income – Decrease of $50,000 to a total of $200,000  State Revenue – Increase of $171,407 Education Funding – Recent estimates from PDE until state budget is approved  Retirement and Social Security Subsidy increases as PSERS employer rate and salaries increase.   Federal Revenue – No change

FY 2020 – 2021 Expenditures 2018-2019 2019-2020 2020-2021 Increase / % of Total Expense Type Actual Budget Budget (Decrease) Expenses 100 Salaries 17,845,815 18,697,488 19,252,244 554,756 45% 200 Benefits 10,910,316 11,900,514 12,169,458 268,944 28% 300 Professional Services 1,975,867 2,660,418 2,564,103 (96,315) 6% 400 Property Services 371,367 411,272 409,474 (1,798) 1% 500 Other Purchased Svcs 2,795,641 3,056,933 2,998,673 (58,260) 7% 600 Supplies & Books 1,275,990 1,732,431 1,792,792 60,361 4% 700 Equipment 286,797 472,368 392,250 (80,118) 1% 800 Interest, Fees & Dues 1,139,919 1,121,742 1,156,287 34,545 3% 900 Principal & Transfers 4,106,422 2,181,500 2,201,500 20,000 5% Total 40,708,134 42,234,666 42,936,781 702,115

Expenditures 7% 20% 73% Personnel Non-Personnel Debt Service

New Hope-Solebury Millage History Fiscal Year Tax Rate Change Average Tax Average % Increase Act 1 Index Bill Increase 2012/2013 84.72 1.42 4,579 76 1.70% 1.70% 2013/2014 86.16 1.44 4,657 78 1.70% 1.70% 2014/2015 87.96 1.81 4,755 98 2.10% 2.10% 2015/2016 89.64 1.67 4,845 90 1.90% 1.90% 2016/2017 93.94 4.30 5,078 232 4.80% 2.40% 2017/2018 97.69 3.76 5,279 201 4.00% 2.50% 2018/2019 100.04 2.34 5,420 141 2.40% 2.40% 2019/2020 102.3418 2.30 5,542 122 2.30% 2.30% 2020/2021 105.0027 2.60 5,686 144 2.60% 2.60% Median Assessed Value: 54,150

Budget History 6.00% Budget History 5.00% • FY 2012-2013 to FY 2016-2017 • Total expenditure increase of 23% 4.00% or 4.6% per year • Tax Rate increase of 10.8% or 2.16% per year 3.00% • FY 2017-2018 to FY 2019-2020 2.00% • Total expenditure increase of 4.7% or 1.56% per year 1.00% • FY 2020-2021 • Total expenditure increase of 0.00% 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 1.66% Expenditure % Change Tax Rate % Change

FY 2020-2021 Preliminary vs Proposed Final Budget Summary of Changes – Salary and Benefits Expenditure Reduction / Amount Description (Increase) Salary -0- Maintains current staffing levels district wide. Includes all contracted salary increases. Medical Benefits (57,000) Preliminary Projections of 6% increase and final was 8%. Stop Loss Benefit Premium 310,000 Increased Claim limit from $25,000 to $150,000.

FY 2020-2021 Preliminary vs Proposed Final Budget Summary of Changes – Other Functions Expenditure Reduction / Amount Description (Increase) Special Education – Tuition 16,000 Decrease in student programming needs Insurance (4,250) Increase due to additional Cyber Protection policy Consulting Services (22,500) Increase for Benefits Consultant’s agreement Building/Department Budgets 198,000 Reductions from reviews from January – May. No impact to programs or services.

FY 2020-2021 Proposed Final Budget Budgetary Placeholders/Open Items Expenditure Reduction Amount Description / (Increase) Staffing – Enrollment $95,000 If Kindergarten enrollment increases the recommendation would be to add Placeholder an LTS teacher. Staffing – EDR Budget to $90,000 NHSEA contract identifies EDR’s and associated stipends. The budget Actual Trend includes all EDR stipends and this is the average amount under budget per year. Charter School Tuition $45,000 This amount represents charter school tuition for either 2 Regular Ed student or 1 Special Ed student. Special Education $150,000 For unknown special education costs that may arise throughout the year Contingency including new students. Revenue offset for this item. Safety & Security $100,000 Specific considerations were identified in safety audit. Budgetary Reserve $150,000 For truly unknown items that can’t be planned for. *The total expenditure budget cannot be increased/decreased after approval. Therefore it is essential to prepare for budgetary unknowns that could have substantial impacts.

• Financial Position of the district is stable. • Recommending approval of this Proposed Final Budget to be put on public display • Tax increase at the Act 1 Index – 2.6% • 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 28 – Proposed Final Budget Approval • Authorize Proposed Final Budget Advertising and Public Inspection • May 29 – Advertise and make budget available for public inspection Timeline • June 25 – Final Budget Adoption Resolution • Real Estate Tax Resolution • Homestead/Farmstead Exclusion Resolution • Installment Payment of Real Estate Tax Resolution

• 2018-2019 Process began for funding a Capital Reserve Fund • Purpose of the fund is to set funding aside for the immediate and longer term needs for maintenance and upkeep of district facilities. • 2018 completed a facility condition assessment that identified 650+ projects at a total estimated cost of $37M over the next 20 years. • Current funding available in the fund is $4.9M Capital Reserve Fund • Additionally the General Fund has a committed fund balance Budget of $1,760,000. • Capital Reserve Fund does not require the same level of budget authorization as General Fund. • Best practice is to complete an annual budget for this fund for an agreed to spending plan. • A 5 year plan has been developed and will continuously be updated as project needs change. • A 10 year plan is still being developed and will be made available when complete.

District Facility / Location Project Description Estimated Amount Construction Project Close Out Campus Revitalization Project Remaining Budget $10,000 District Wide Roofing $900,000 LES Sprinkler, Full Retrofit $160,000 HS Windows $180,000 HS Replace VCT Flooring – Classrooms and Hallway $230,000 HS Asbestos Abatement – VCT flooring removal $30,000 Athletic Replace Tennis Courts $600,000 Total Estimated Amount $2,110,000

QUESTIONS?