Public Hearing FY 2020 Final Budget Dale C. Kelly, CPA September - PowerPoint PPT Presentation

Public Hearing FY 2020 Final Budget Dale C. Kelly, CPA September 10, 2019 Chief Financial Officer

Agenda • Presentation of proposed millage • Presentation of proposed budget • Superintendent’s comments • Public comments • Board discussion • Adoption of total millage • Adoption of 2019‐20 Budget 2

Property Taxes Residential Commercial Buildings 3

Property Taxes • Just Value (Property Appraiser) • Less: Save Our Homes Cap (Legislature) • Equals: Assessed Value • Less: Exemptions (Legislature) • Equals: Taxable Value • Times: Millage Rate (Legislature and Board) • Equals: Property Taxes 4

EDR Estimates Orange Taxable Values as of March 2019 250.0 200.0 150.0 In Billions 100.0 50.0 ‐ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5

Millage Rate Comparison Description 2018‐19 2019‐20 Change Required Local Effort 4.051 3.861 (0.190) Discretionary 0.748 0.748 ‐ Additional Voted Millage 1.000 1.000 ‐ Subtotal Operating 5.799 5.609 (0.190) Capital Projects 1.500 1.500 ‐ Total Millage 7.299 7.109 (0.190) 6

Millage Rates 10.00 9.00 Sp. Millage 8.00 1.000 1.000 1.000 1.000 1.000 Critical, 0.250 1.000 7.00 1.000 Sp. Millage 1.000 1.000 6.00 5.425 Required 5.00 5.396 5.297 5.230 5.226 5.114 4.970 Local 4.563 RLE 4.222 4.051 Effort 4.00 3.861 Reduced 3.00 1.564 2.00 Cap Millage Cap. Millage 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.00 Disc Mill Disc. Mill 0.748 0.748 0.748 0.748 0.748 0.748 0.748 0.748 0.748 0.748 0.748 0.00 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Disc Mill Cap Millage RLE Critical Sp. Millage 7

Rolled ‐ Back Rate • Current Year Taxable Values • Less: New Construction and Additions • Equals: Current Year Adjusted Taxable Values • Times: Rolled‐Back Rate (millage rate) • Equals: Prior Year Tax Proceeds 8

Rolled ‐ Back Rate • Required Local Effort – 1.57% over the rolled‐back rate • Total Millage – 3.79% over the rolled‐back rate 9

Homeowner Impact Description Values Taxes Home Just Value Prior Year* $ 202,625 Less Homestead Exemption $ 25,000 Taxable Value Prior Year $ 177,625 Taxes Paid Prior Year $ 1,296 Home Just Value Current Year $ 206,000 Less Homestead Exemption $ 25,000 Taxable Value Current Year $ 181,000 Taxes Proposed Current Year $ 1,287 Net Change in Taxes $ (9) *with Save Our Homes 10

Commercial Owner Impact Description Values Taxes Property Just Value Prior Year $ 938,350 Less Homestead Exemption $ ‐ Taxable Value Prior Year $ 938,350 Taxes Paid Prior Year $ 6,849 Property Just Value Current Year $ 1,000,000 Less Homestead Exemption $ ‐ Taxable Value Current Year $ 1,000,000 Taxes Proposed Current Year $ 7,109 Net Change in Taxes $ 260 11

Proposed Annual Budget 2019 ‐ 20 12

Timeline of Budget Process • Community input and legislative priorities – Fall • Governor’s Budget – January • Final EDR Forecast – March • Legislative Session – March through May • Budget Committee meetings – March through May • Initial school allocations – March • Board work sessions – April and June • Proposed millage and budget advertised – July 28 • Public hearing on Tentative Budget– July 30 • Public hearing on Adopted Budget– September 10 13

Budget Summary • Compensation to employees • Increased dollars for safety and mental health • Maintains focus on district’s strategic plan • Preserves academic programs, retains highly qualified teachers, and protects arts, athletics and student activities 14

Summary of Five Funds Fund 2018‐19 2019‐20 Difference General 2,150,793,740 2,231,730,988 80,937,248 Debt Service 222,532,629 227,833,851 5,301,222 Capital Projects 1,858,305,493 1,984,059,685 125,754,192 Special Revenue* 169,957,186 170,188,462 231,276 Internal Service 336,472,194 348,801,859 12,329,665 Totals 4,738,061,242 4,962,614,845 224,553,603 *Food Service only, other grant awards to be amended into budget as approved. 15

General Fund 16

General Fund • Budget – $2,231,730,988 • Operating budget of the school district • Primary source is the Florida Education Finance Program (FEFP) • Funding is equalized per student statewide • Revenues are primarily from state sales taxes and local property taxes • Also includes revenues from additional voted millage not to exceed 4 years 17

Estimated Revenue 18

FTE Actual and Forecast 250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000 170,000 160,000 150,000 07‐08 08‐09 09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 19

Total State Appropriations (All Funds) 45% 40% 35% 30% 25% 2016‐17 2017‐18 20% 2018‐19 2019‐20 15% 10% 5% 0% Education Enhance. and Ed. Human Services Criminal Justice and Natural General Government Judicial Branch Other Corrections Resources/Environ./Growth Mgt./Transp. 20

Education Appropriations (All Funds) 70% 60% 50% 2016‐17 40% 2017‐18 2018‐19 2019‐20 30% 20% 10% 0% Early Learning Public Schools Community Colleges Universities Other 21

Budgeted Funding Per Student Second Calculation FEFP With CPI Comparison 9,500.00 9,000.00 $639 Less 8,500.00 8,000.00 711.84 658.98 630.39 7,500.00 7,632.22 585.43 551.32 7,343.01 7,309.24 7,231.06 491.16 7,120.32 7,057.07 7,000.00 466.16 6,988.29 123.53 6,883.27 360.11 468.97 6,735.24 339.16 452.48 6,530.42 6,500.00 6,447.36 210.64 6,346.25 6,228.17 6,000.00 July 2007 July 2008 July 2009 July 2010 July 2011 July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 2018 July 2019 State Funding Federal Stimulus Critical Needs Millage Edu Jobs One Mill CPI 22

Percentage of State General Revenue Going to Education 70 65 60 Percent 55 50 45 40 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Fiscal Year End 23

Percentage of General Revenue to Public Schools 80 75 70 Percent 65 72.6 71.7 71.8 71.4 70.8 70.3 60 69.2 55 50 FY14 FY15 FY16 FY17 FY18 FY19 FY20 24 Fiscal Year End

Lottery Appropriations for Florida Reflects How Lottery Funds Were Dispersed to Education 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Public Schools Classrooms First & CSR Construction Community Colleges State Universities State Other 25

Estimated Revenues by Source Federal ‐ 0.61% Local ‐ 47.76% State ‐ 51.63% 26

Appropriations 27

Priorities • Compensation to employees • Increased mental health services • Increased safety at schools • Instructional support for Teaching and Learning • Preserving academic programs • Retain highly qualified teachers • Protect arts, athletics, and student activities 28

Other Budget Items • Health insurance‐increase of 10% • Florida Retirement System rate increases • Professional development days 29

General Fund Budgeted Appropriations by Function 80.0% 70.0% 60.0% 50.0% FY16-17 FY17-18 40.0% FY18-19 FY19-20 30.0% 20.0% 10.0% 0.0% Instr. & Instr Support School Administration Plant Operation & Transportation General Support General Admin. & Community & Debt Maint. Board Serv. 30

Capital Projects Fund 31

Capital Projects Fund • Budget – $1,984,059,685 • Primary revenue sources – sales surtax, property tax, impact fee • Minimal state support • Primary uses are for new relief schools, comprehensive renovations, capital renewal, and safety 32

Budgeted Capital Revenues by Source 700.00 600.00 500.00 400.00 Other State In Millions PECO Other Local 300.00 Sales Taxes Impact Fees Property Taxes 200.00 100.00 ‐ 2020 2021 2022 2023 2024 Fiscal Year 33

Capital Projects Use of Funds (Excluding Reserves) Debt Service & Ops 7.35% Buses & Equipment 1.17% Ancillary Facilities 1.08% Districtwide Capital 21.16% Charter Schools 0.62% Educational Tech 5.46% Portables 2.79% Safety Security Environ 7.84% Site Acquisition 2.74% Comprehensive Needs 22.18% Additional Schools 27.61% 34

Capital Plan • Continues with project priorities as previously presented • Includes funding for ballfield lighting at high schools • Includes the continuation of the refurbishing all the track and field components at our high schools • Includes new capacity projects based on recommendations from Advance Planning • Includes continuation of safety projects 35

Five ‐ Year New School Openings • 2019 Castleview ES • 2019 Horizon West MS • 2019 Water Spring ES • 2020 20‐E‐SW‐4 • 2020 85‐E‐W‐4 • 2020 83‐E‐SE‐3 36

Five ‐ Year New School Openings • 2021 80‐H‐SW‐4 • 2021 113‐H‐W‐4 • 2021 118‐E‐SW‐5 • 2021 43‐E‐SE‐2 • 2022 89‐E‐W‐4 • 2022 30‐E‐SE‐3 • 2022 90‐K8‐N‐7 • 2022 132‐M‐W‐4 37