ProposedFinalBudgetFY2019‐2020

NewHope‐SoleburySchoolDistrict

Offerthebestqualityeducationpossibleforourcommunity’schildrenOffer

IncreasestudentachievementandgrowthIncrease

ProvidecomprehensiveservicestostudentsProvide

AligntoclasssizeguidelinesAlign

EncourageprofessionaldevelopmentandprofessionalgrowthEncourage

DevelopcapitalplanwithfundingstrategiesDevelop

FY2019‐2020

BudgetaryGoals

BudgetaryProcess

• Sep/Oct– BudgetDiscussionsBegin• Jan– Boardapprovedapreliminarybudgetwithataxincreaseof2.75%• Act1BaseIndex:2.30%• Act1Exceptions:0.45%

• Feb‐May– Budgetreviewswithbuilding/departmentleaders.• Enrollment/ClassSize/Staffingreviews

• May– ProposedFinalBudgetApproval• Structurallybalancedbudgetwitha2.3%taxincrease

• June– FinalBudgetApproval• Changeswouldonlyincludeupdatedinformationforunknownitems

BudgetaryUnknowns

• FederalBudget(TitleI,II,IDEA)• PennsylvaniaStateBudget• Kindergartenenrollment• CharterSchool/MBITEnrollments• TransportationContract/Seatbelts

ProposedFinalBudgetHighlightsBudgetaryAreas 2018‐2019 2019‐2020 Change

Expenditures 41,054,823 42,234,666 2.9%

Revenues 41,054,823 42,234,666 2.9%

UseofFundBalance 0 0

EndingUnassignedFundBalance 3,268,813 3,268,813

FundBalanceasa%ofExpenditures

7.96% 7.74%

FY2019‐2020Revenues

RevenueComparison– Increaseof$1,179,843 TaxIncrease– 2.3%generates$700kinnewrevenue

Act1Index– 2.3% InterestIncome– Increaseof$150,000toatotalof$250,000 StateRevenue– Increaseof$193,147

EducationFunding– Flatto18‐19Budgetuntilstatebudgetisapproved RetirementandSocialSecuritySubsidyincreasesasPSERSemployerrateandsalariesincrease.

FederalRevenue– Increaseof$69,051 PrimarilyduetotheproposedusageofSchoolBasedAccessFundingforincreasesinspecialeducationneeds/costs

RevenueType2017‐2018Actual

2018‐2019Budget

2019‐2020Final Change

%ofTotalRevenue

6000Local 34,634,549 34,191,554 35,109,199 917,645 83%7000State 6,365,485 6,489,370 6,682,517 193,147 16%8000Federal 86,906 373,899 442,950 69,051 1%Total 41,086,940 41,054,823 42,234,666 1,179,843

FY2019– 2020Expenditures

ExpenseType2017‐2018Actual

2018‐2019Budget

2019‐2020Final

Increase/(Decrease)

%ofTotalExpenses

100Salaries 17,563,773 18,367,472 18,697,472 330,000 44%200Benefits 10,601,915 11,493,861 11,900,530 406,669 28%300ProfessionalServices 1,955,245 2,388,796 2,660,418 271,622 6%400PropertyServices 302,106 392,525 411,272 18,747 1%500OtherPurchasedSvcs 3,009,914 3,159,875 3,056,933 (102,942) 7%600Supplies&Books 1,519,813 1,542,595 1,732,431 189,836 4%700Equipment 144,993 429,075 472,368 43,293 1%800Interest,Fees&Dues 1,077,759 1,144,124 1,121,742 (22,382) 3%900Principal&Transfers 2,790,000 2,136,500 2,181,500 45,000 5%Total 38,965,518 41,054,823 42,234,666 1,179,843

NewHope‐Solebury MillageHistoryFiscalYear TaxRate Change AverageTax

BillAverageIncrease

%Increase Act1Index

2011/2012 83.30 1.15 4,503 62 1.39% 1.40%

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%

MedianAssessedValue:54,155

• FY2011‐2012toFY2015‐2016• Totalexpenditureincreaseof20%or4%peryear

• TaxRateincreaseof8.8%or1.76%peryear

• FY2016‐2017toFY2018‐2019• Totalexpenditureincreaseof2.9%or1%peryear

• FY2019‐2020• Totalexpenditureincreaseof2.9%

BudgetHistory

FY2019‐2020PreliminaryvsProposedFinalBudgetSummaryofChanges– SalaryandBenefits

ExpenditureReduction/(Increase)

Amount Description

Salary 50,000 Maintains currentstaffinglevelsdistrictwideotherthana.5FTEreductioninHSScience.Includesallcontractedsalaryincreases.

Medical Benefits 20,000 Preliminary Projectionsof7%increaseandfinalwas5%,alsoincludesopenenrollmentchanges

DentalBenefits 13,000 PreliminaryProjectionsof10%andfinalwas4%.

FY2019‐2020PreliminaryvsProposedFinalBudgetSummaryofChanges– OtherFunctions

ExpenditureReduction/(Increase)

Amount Description

SpecialEducation – Tuition (272,000) Increase forstudentprogrammingneeds

MBITEnrollment 55,000 MBITFinalBudgetbased on18.25ADMandcurrentprojectionis12‐15.

Charter SchoolEnrollment 24,000 Reductionof1CharterSchoolStudent

PropertyInsurance/Legal 30,000 PropertyInsurance estimatesfromcampusrevitalizationwerereduced.Legalwasreducedbasedonprior3yearaverages.

Building/DepartmentBudgets 55,000 Reductionsfromreviews fromJanuary– May.Noimpactstoprogramsorservices.

CapitalImprovement Plan (87,000) Currentbudgetappropriates $330,000forcapitalimprovements.Thegoalistomovethislineitemto1‐2%oftheoverallexpenditurebudget($400k‐ $800k)

FY2019‐2020ProposedFinalBudgetBudgetaryPlaceholders/OpenItems

ExpenditureReduction/(Increase)

Amount Description

Staffing– EnrollmentPlaceholder

$93,000 Kindergarten enrollmentiscurrentlyatxx.IfenrollmentreachesxxtherecommendationwouldbetoaddaLTSteacher.

Staffing– EDRBudgettoActualTrend

$91,000 NHSEA contractidentifiesEDR’sandassociatedstipends.ThebudgetincludesallEDRstipendsandthisistheaverageamountunderbudgetperyear.

CharterSchoolTuition $46,000 Thisamountrepresents charterschooltuitionforeither2regularedstudentsor1specialed student.

SpecialEducationContingency

$150,000 Forunknown specialeducationcoststhatmayarisethroughouttheyearincludingnewstudents.Revenueoffsetforthisitem.

Safety &Security $100,000 Specific considerationswillbeidentifiedinsafetyauditcompletedinApril2019.

CapitalReserve/Projects $330,000 Goalistoincreasethisto1‐2%ofexpenditurebudget.BudgetaryReserve $150,000 Fortruly unknownitemsthatcan’tbeplannedfor.

*The total expenditure budget cannot be increased/decreased after approval. Therefore it is essential to prepare for budgetary unknowns that could have substantial impacts.

 33,000,000

 35,000,000

 37,000,000

 39,000,000

 41,000,000

 43,000,000

 45,000,000

 47,000,000

12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21 21‐22 22‐23

Expense to Revenue Gap Continues to Close

Expense Revenue: 2% Projection Revenue: IFO Act 1

 ‐

 1,000,000

 2,000,000

 3,000,000

 4,000,000

 5,000,000

 6,000,000

 7,000,000

 8,000,000

 9,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Fund Balance Projections

Fund Balance: 2% Projection Fund Balance: IFO Projection

Summary

• FinancialPositionofthedistrictisstable.• RecommendingapprovalofthisProposedFinalBudgettobeputonpublicdisplay• TaxincreaseattheAct1Index– 2.3%

• Finalbudgetwillincludeupdatesifanynewinformationbecomesavailable.

• Thispresentationonlyincludesthebudgethighlights• Supplementaldataandreportsareincludedinthebudgetpacket• IncludingformPDE‐2028whichistheofficialbudgetdocumentsubmittedtoPDE

Timeline

• May 23 –Proposed Final Budget Approval• Authorize Proposed Final Budget Advertising and Public Inspection

• May 24 – Advertise and make budget available for public inspection

• June 24 – Final Budget Adoption Resolution• Real Estate Tax Resolution• Homestead/Farmstead Exclusion Resolution 

• Installment Payment of Real Estate Tax Resolution

CapitalReserveFundBudget

• 2018‐2019ProcessbeganforfundingaCapitalReserveFund• Purposeofthefundistosetfundingasidefortheimmediateandlongertermneedsformaintenanceandupkeepofdistrictfacilities.

• 2018completedafacilityconditionassessmentthatidentified650+projectsatatotalestimatedcostof$37Moverthenext20years.

• Currentfundingavailableinthefundis$2.9M• Estimatedthatanadditional$2MwillbeavailabletotransferintothefundinNovember2019.

• AdditionallytheGeneralFundhasacommittedfundbalanceof$1,760,000.

• Completedthelistofimmediateprojectsfor2019‐2020andthisbudgetreflectsthoseneeds.• Athleticfacilityreviewisstillbeingcompleted• Thisbudgetmayneedtobeupdatedoncethatiscomplete.

• CapitalReserveFunddoesnotrequirethesamelevelofbudgetauthorizationasGeneralFund.• Bestpracticeistocompleteanannualbudgetforthisfundforanagreedtospendingplan.

• A5yearplanisstillbeingreviewedandwillbemadeavailablewhencomplete.

District Facility / Location Project Description Amount

Construction Project Close Out Campus Revitalization Project Budget Overruns $200,000

District Wide Campus Signage including ADA Parking $25,000

UES Replace Backflow Prevention – 2 Units $10,000

UES Install Gutters and Downspouts $4,000

MS Replace Library Carpet $80,000

HS Replace 2 Boilers (removed from renovation project) $500,000

HS Replace VCT Flooring – 2nd floor (removed from project) $20,000

HS Asbestos Abatement – VCT flooring removal $30,000

HS Repair and Repoint Brickwork $5,000

Athletic Resurface Track $205,000

Athletic Replace Tennis Courts $700,000

Total Projects $1,779,000

QUESTIONS?