Public HearingFY 2021 Tentative BudgetDale C. Kelly, CPAChief Financial Officer July 30, 2020

Agenda

2

• Presentation of proposed millage• Presentation of proposed budget• Superintendent’s comments• Public comments• Board discussion• Adoption of total millage• Adoption of 2020-21 Tentative Budget and

establishment of date for final hearing

Property Taxes

3

Commercial BuildingsResidential

4

• 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

Property Taxes

EDR EstimatesOrange Taxable Values

as of January 2020

5

-

50.0

100.0

150.0

200.0

250.0

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 2025

In B

illio

ns

6

Description 2019-20 2020-21 Change

Required Local Effort 3.861 3.609 (0.252)

Discretionary 0.748 0.748 -

Additional Voted Millage 1.000 1.000 -

Subtotal Operating 5.609 5.357 (0.252)

Capital Projects 1.500 1.500 -

Total Millage 7.109 6.857 (0.252)

Millage Rate Comparison

Millage Rates

7

Disc. Mill0.74800.74800.74800.74800.74800.74800.74800.74800.74800.74800.7480Disc Mill

0.7480

1.5000 Cap. Millage1.5000

1.50001.50001.50001.50001.50001.50001.50001.50001.5000Cap Millage1.5000

RLE3.6090

3.86104.05104.22204.56304.97005.22605.11405.23005.29705.3960

5.425Required

LocalEffort

Critical, 0.2500

Sp. Millage1.0000

1.00001.00001.00001.0000

1.00001.00001.00001.0000Sp. Millage1.0000

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10Disc Mill Cap Millage RLE Critical Sp. Millage

Reduced 1.816

8

3.5%

6.9%

8.4%

7.6% 7.4%6.8% 6.7%

6.1%

1.8%

4.9%

5.9%

0.0% 0.0%

1.4%1.9% 2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

State Tax Roll Increase vs. State RLE $ Increase

State Tax Roll Increase State RLE $ Increase

9

• 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

Rolled-Back Rate

Rolled-Back Rate

10

• Required Local Effort – 1.89% under the rolled-back rate

• Total Millage – 1.24% over the rolled-back rate

11

Homeowner Impactwith Save Our Homes

Home Just Value Prior Year $ 212,683 Less Homestead Exemption $ 25,000 Taxable Value Prior Year $ 187,683 Taxes Paid Prior Year $ 1,334

Home Just Value Current Year $ 217,000 Less Homestead Exemption $ 25,000 Taxable Value Current Year $ 192,000 Taxes Proposed Current Year $ 1,317

Net Change in Taxes $ (17)

12

Commercial Owner Impact

Property Just Value Prior Year $ 952,744 Less Homestead Exemption $ -Taxable Value Prior Year $ 952,744 Taxes Paid Prior Year $ 6,773

Property Just Value Current Year $ 1,000,000 Less Homestead Exemption $ -Taxable Value Current Year $ 1,000,000 Taxes Proposed Current Year $ 6,857

Net Change in Taxes $ 84

13

Proposed Annual Budget2020-21

Timeline of Budget Process

14

• Community input and legislative priorities – Fall• Governor’s Budget – January• EDR Forecast – January• Legislative Session – January through March• Budget Project Sessions – October through March• Initial school allocations – March• Board work sessions – June• Proposed millage and budget advertised – July 26• Public hearing on Tentative Budget– July 30• Public hearing on Adopted Budget – September 8

Budget Summary

15

• COVID-19 impacts and potential for revenue shortfall• New Teacher Salary Categorical • Limited FEFP funding• CARES Act funding• Maintains focus on district’s strategic plan• Preserves academic programs, retains highly qualified teachers,

and protects arts, athletics and student activities

CARES Act Funding

16

• ESSER - Elementary and Secondary School Emergency Relief Fund

• $55.4 million • Charter schools-$3.6m• Private schools-$2.8m• Remaining Cohort 8 devices-$8.1m• Regression intervention materials-$2.4m• Instructional technology equipment-$1.4m• ESE evaluations $255K• Contracted custodial services-$1.9m• Additional LPNs and Health Assistants-$7.3m• Substitute at each school-$4.4m• Hand-held thermometers-$153K• Bottle filling stations-$1.8m• Furniture movers-$900K• Athletic support-$1.6m• Indirect costs-$2.2m• Reserve for projected shortfall-$16.6m

• GEER - Governor’s Emergency Education Relief Fund

• $5.1 million • Charter schools-$243K• Private schools-$280K• Jump Start summer camp-$419K• 3rd Grade Reading camp-$1.1m• Tutoring-$3.0m• Transportation/Other-$77K

Other Items Under Review

17

• Walking thermal scanners-$531K• UV lighting in HVAC units-$13.2m

18

Summary of Five FundsFund 2019-2020 2020-21 Difference

General 2,231,730,988 2,217,760,062 (13,970,926)

Debt Service 227,833,851 230,437,362 2,603,511

Capital Projects* 1,984,059,685 1,226,031,739 (758,027,946)

Special Revenue** 170,188,462 161,801,967 (8,386,495)

Internal Service 348,801,859 348,008,014 (793,845)

Totals 4,962,614,845 4,184,039,144 (778,575,701)

*Includes carry-over projects for 2019-20 only.

**Food Service only, other grant awards to be amended into budget as approved.

19

General Fund

General Fund

20

• Budget – $2,217,760,062• 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

21

Estimated Revenue

FTE Actual and Forecast

22

150,000

160,000

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

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 20-21

Total State Appropriations (All Funds)

23

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Education Enhance. and Ed.Other

Human Services Criminal Justice andCorrections

NaturalResources/Environ./Growth

Mgt./Transp.

General Government Judicial Branch

2017-18

2018-19

2019-20

2020-21

Education Appropriations (All Funds)

24

0%

10%

20%

30%

40%

50%

60%

70%

Early Learning Public Schools Community Colleges Universities Other

2017-18

2018-19

2019-20

2020-21

Budgeted Funding Per StudentSecond Calculation FEFP

With CPI Comparison

25

7,309.24

6,988.29

6,530.42

6,447.36

6,228.17

6,346.25

6,735.24

6,883.27

7,057.07 7,120.32 7,231.06

7,343.01

7,632.22 7,745.71

360.11 339.16

123.53

210.64

468.97 452.48

466.16

491.16

551.32 585.43

630.39 658.98

711.84

768.88

6,000.00

6,500.00

7,000.00

7,500.00

8,000.00

8,500.00

9,000.00

9,500.00

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 July 2020

State Funding Federal Stimulus Critical Needs Millage Edu Jobs One Mill CPI

$669Less

Percentage of State General Revenue Going to Education

26

40

45

50

55

60

65

70

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 21

Perc

ent

Fiscal Year End

27

72.6 71.7 71.8 71.469.2 70.3 70.8 71.2

50

55

60

65

70

75

80

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Perc

ent

Fiscal Year End

Percentage of General Revenue to Public Schools

Lottery Appropriations for FloridaReflects How Lottery Funds Were Dispersed to Education

28

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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 21

Public Schools Classrooms First & CSR Construction Community Colleges State Universities State Other

Estimated Revenues by Source

29

Federal - 0.49%

State - 51.46%

Local - 48.05%

30

Appropriations

Priorities

31

• Reopening with 3 instructional models• COVID-19 safety measures• Social Emotional Learning • Preserving academic programs• Retain highly qualified teachers• Protect arts, athletics, and student activities

Other Budget Implications

32

• Potential FTE/Enrollment Decline• Florida Retirement System rate increases 10% - $15.5m• Previous year 1.5% salary impact on FY21 budget - $17m• Additional pre-planning day for instructional staff - $4.7m• Family Empowerment Scholarship - $15.8m• Looming State revenue shortfalls

General FundBudgeted Appropriations by Function

33

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Instr. & Instr Support SchoolAdministration

Plant Operation &Maint.

Transportation General Support General Admin. &Board

Community & DebtServ.

FY17-18

FY18-19

FY19-20

FY20-21

34

Capital Projects Fund

Capital Projects Fund

35

• Budget – $1,226,031,739• Primary revenue sources – sales surtax, property tax,

impact fee• Minimal state support• Primary uses are for comprehensive renovations, new

schools, capital renewal, and debt service & operations

Budgeted Capital Revenues by Source

36

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

2021 2022 2023 2024 2025

In M

illio

ns

Fiscal Year

Other State

PECO

Sales Taxes

Impact Fees

Property Taxes

Capital Projects Use of Funds(Excluding Reserves)

37

Districtwide Capital 5.90%

Comprehensive Needs 16.41%

Additional Schools 33.14%

Site Acquisition 0.92%

Security System/Environmental Projects 0.32%

Portables 3.48%

Educational Tech 4.97%

Charter Schools 1.62%

Buses & Equipment 2.97%

Debt Service & Ops 30.27%

Tentative Capital Plan

38

• Projected revenues adjusted for COVID-19 impact• Includes new capacity projects based on

recommendations from Advance Planning• Includes Functional Equity projects • Completes the digital rollout to all elementary• Includes Pre-2003 Sales Tax schools• Includes funding for repurposing schools • Capital renewal funding throughout sales tax

Five-Year New School Openings

39

• 2020 Sunshine ES• 2020 Summerlake ES• 2020 Vista Pointe ES• 2021 113-H-W-4• 2021 43-E-SE-2• 2021 80-H-SW-4

Five-Year New School Openings

40

• 2022 89-E-W-4• 2022 114-E-W-4• 2022 30-E-SE-3• 2022 90-K8-N-7• 2022 132-M-W-4• 2023 118-E-SW-5• 2023 65-M-W-4• 2023 45-M-SE-2

Five-Year New School Openings

41

• 2024 47-E-W-4• 2024 58-E-SE-2

FY2021 Comprehensive Projects -Construction

42

• Orange Technical College – Orlando• Orange Technical College – Westside

FY2021 Comprehensive Projects -Design

43

• Orange Technical College – Mid Florida Tech • Orange Technical College – Winter Park• Howard MS (Pre-2003 Sales Tax schools)• Lakeview MS (Pre-2003 Sales Tax schools)• Three Points ES (Pre-2003 Sales Tax schools)• Winter Park HS (Pre-2003 Sales Tax schools)

Other FY21 Appropriations

44

• School bus replacement - $16.1m• Portable moves and leasing - $18.9m• Charter school capital funding - $8.7m• District-wide painting - $5.8m• One-time transfer from contingency - $22.8m

45

Debt Service Fund

Debt Service Fund

46

• Budget - $230,437,362• Accumulates resources to pay long-term debt• Primary Revenue Sources

-State CO&DS Revenues-Transfer from Capital Projects Fund

47

Special Revenue Fund

Special Revenue

48

• Budget – $161,801,967• Initial budget includes Food Service Program only, a

self-supporting operation• Funding is primarily from Federal reimbursement and

USDA commodities, as well as local sales• Meal prices will remain the same for 2020-21

Other Federal Grants will be amended into the budget as approved

49

Internal Service Fund

Internal Service Fund

50

• Total budget – $348,008,015 • Used to account for the district’s Employee Benefit

Trust Fund, Property Casualty Loss Fund, and Printing Services Fund

Internal Service Fund

51

Employee Benefit Trust Fund• Budget – $305,187,303• Funded by Board contributions for employees and

deductions for employees and dependents• Medical and prescription claims payments and charges

for services• Plans continue to comply with Affordable Care Act

requirements• Reflects premium and plan changes

Internal Service Fund

52

Property Casualty Fund• Budget – $37,960,172 • Property, Liability and Worker’s Comp Claims• Funded through charges to other budgets

Printing Services• Budget – $4,860,540• Funded through charge-backs to departments and

schools

Remaining Actions

53

• Superintendent’s comments• Public comments• Board discussion• Adoption of total millage• Adoption of 2020-21 Tentative Budget and

establishment of date for final hearing