Proposed budget

Transcription

1 W-1 Proposed budget Michelle Vargas, chief financial officer, May 22, 2017 Budget timeline Fiscal year (FY) June 2016: set parameters for FY17 budget. December 2016: certified pay 2017 levy. January 2017: funding legislative session begin. February 2017: enrollment projections. February through May 2017: staffing. February through April 2017: department and site budgets. 1

2 W-2 Budget timeline FY May 8, 2017: final budget FY17 budget amendment. May 22, 2017: legislative session scheduled to end. May 22, 2017: review proposed FY18 budget all funds. June 26, 2017: approve FY18 budget all funds. Budget Proposed for all funds 2

3 W-3 Revenue assumption State aid revenue increase of $9.1 million: $4.9 million increase in general education revenue. $4 million in basic formula increase. Formula increase of 1.5%, or $91,to $6,158. Increased average daily pupil unit estimate of 130. $930 thousand operating capital revenue due to shift from levy. $1.8 million increase in long-term facilities maintenance (LTFM) revenue. $2.5 million increase in special education revenue. Revenue assumptions Property tax revenue decrease of $544 thousand: $1.9 million increase for referendum. $1.4 million reduction in lease payments and operating capital levies. $784 thousand decrease in health and safety adjustments. $335 thousand reduction in LTFM. 3

4 W-4 Revenue assumptions Federal revenue decrease of $783 thousand: $313 thousand Title II reduction to remove carryover budget. $259 thousand special education Individuals with Disabilities Education Act (IDEA) reduction to remove carryover budget. $178 thousand Title III reduction to remove carryover budget. Other local revenue increase of $340 thousand: $400 thousand increase in projected investment earnings. $60 thousand reduction in miscellaneous local revenue to remove grant dollars not yet approved for FY18. Revenue summary Revenues Amended Proposed budget budget $ change % change Property tax $80,286,352 $79,742,438 ($543,913) -0.7% State revenue $386,257,112 $395,388,956 $9,131, % Federal revenue $14,411,318 $13,627,542 ($783,776) -5.4% Local sales $332,050 $323,950 ($8,100) -2.4% Other local revenue $11,818,120 $12,158,074 $339, % Total revenues $493,104,952 $501,240,961 $8,136, % Property tax includes $1.9 referendum increase offset by $2.2 million reduction for lease payments, operating capital and health and safety and $335 thousand reduction in LTFM shifted to aid. State revenue includes $4.9 million net increase general education aid, $1.8 million LTFM revenue and $2.5 million increase in special education revenue. Federal reduction of $784 thousand to remove carryover entitlements from prior year. 4

5 W-5 Revenue by source State Revenue $395,388,956 79% Federal Revenue $13,627,542 3% Property Tax $79,742,439 16% Local Sales $323,950 0% Other Local Revenue $12,158,074 2% Referendum & Local Opt $45,831,121 9% Property Tax Other $33,911,318 7% Total Revenue FY2018 $501,240,961 Expenditure assumptions 20 full time equivalency (FTE) for increased enrollment. Board approved special education 22 FTE staff increase. $1.4 million increase in LTFM projects. $8 million reduction in capital lease and building projects from prior year: Blaine land purchase, University Avenue and vehicle storage building. $783 thousand reduction for federal carryover budgets. $149 thousand increase for technology levy expenditures. 5

6 W-6 Expenditure assumptions Salaries estimated to increase based on previously negotiated contracts at 2.5 percent. The Federal Insurance Contributions Act (FICA), Public Employees Retirement Association (PERA) and the Teachers Retirement Association (TRA) estimated at 2.5 percent increase. Health, dental, group life and disability insurance premium contributions are projected to increase 5 percent. Expenditure assumptions Elementary, middle and high school instructional staffing ratios are unchanged. Utilities are estimated to increase at 3 percent percent increase for transportation expenses. All other non-salary service expenditures are expected to remain level with the current budget. All staff with budgetary responsibility will manage expenses within allocations and revenue streams. 6

7 W-7 Expenditures detail summary Expenditures Amended Proposed budget budget $ change % change Salaries $288,690,524 $298,101,438 $9,410, % Benefits $92,838,663 $97,074,459 $4,235, % Purchased services $49,209,271 $49,990,833 $781, % Supplies $19,650,946 $19,800,219 $149, % Capital and other $44,691,441 $37,997,971 ($6,693,470) -15.0% Total expenditures $495,080,845 $502,964,920 $7,884, % Salaries include an increase estimate of 2.5% on compensation, plus 20 FTE for increased enrollment, plus 21 board approved special education FTE. Benefits include 2.5% on TRA/PERA/FICA, 5% on health, dental, life and long-term disability insurances, along with the corresponding adjustments for the staff additions and reductions. Capital and other includes $8.1 million decrease in land purchases and construction and $1.4 million increase in LTFM projects. Expenditure by object Benefits $97,074,459 19% Purchased Services $49,990,833 10% Salaries $298,101,438 59% Supplies $19,800,219 4% Capital and Other $37,997,971 8% Total expenditures FY2018 $502,964,920 7

8 W-8 Budget summary General fund balance FY18 By assigned, restricted and unassigned 8

9 W-9 Food service fund FY18 Budget summary Revenues Food service fund FY18 Revenue summary Adopted budget Revenue increase of $517,661 or 2.6% Meal price increase $.05 lunch. Proposed budget $ change % change Local revenue $17,200 $11,200 ($6,000) -34.9% State revenue $1,273,446 $1,143,087 ($130,359) -10.2% Federal revenue $9,569,766 $10,131,356 $561, % Local sales $9,377,380 $9,469,810 $92, % Total revenues $20,237,792 $20,755,453 $517, % State revenue decrease of $130 thousand due to shift to federal. Federal revenue increase of $561 thousand due 3% federal increase and increased breakfast participation. 9

10 W-10 Food service fund FY18 Revenue by source Local Sales $9,469,810 46% Local Revenue $11,200 0% State Revenue $1,143,087 5% Federal Revenue $10,131,356 49% Total revenue FY2018 $20,755,453 Food service fund FY18 Expenditure summary Expenditures Adopted budget Proposed budget $ change % change Salaries $6,522,036 $7,001,746 $479, % Benefits $2,334,244 $2,653,029 $318, % Purchased services $612,877 $582,417 ($30,460) -5.0% Supplies $10,080,749 $10,226,965 $146, % Equipment $704,000 $640,000 ($64,000) -9.1% Other $34,000 $35,000 $1, % Total expenditures $20,287,906 $21,139,157 $851, % Expenditure increase of $851,251 or 4.2% $798 thousand increase in compensation. $146 thousand increase for food and produce and a reduction in capital projects and equipment of $64 thousand. 10

11 W-11 Food service fund FY18 Expenditures by object Capital Expenditures $640,000 3% Purchased Services $582,417 3% Other $35,000 0% Salaries & Benefits $9,654,775 46% Supplies $10,226,965 48% Total expenditures FY2018 $21,139,157 Community service fund FY18 Budget summary 11

12 W-12 Community service fund FY18 Revenue summary Revenue increase of $688,365 or 3.1% $735 thousand increase in Adventures Plus fees due to increased enrollment. $185 thousand increase in school readiness due to increased special education fees. $194 thousand decrease in adult basic education due to declining enrollment that is typical with strong economy. $67 thousand reduction in adult community schools based on prior year results. Revenues Community service fund FY18 Revenue summary Amended budget Proposed budget $ change % change Local revenue $15,634,622 $16,405,844 $771, % State revenue $6,389,711 $6,323,285 ($75,426) -1.2% Federal revenue $182,431 $175,000 ($7,431) -4.1% Transfers in $55,000 $55,000 $0 0.0% Total revenues $22,270,764 $22,959,129 $688, % 12

13 W-13 Community service fund FY18 Revenue by source Other Local Revenue $12,932,295 56% State Revenue $6,323,285 28% Property Taxes $3,473,549 15% Federal Revenue $175,000 1% Transfer In $55,000 0% Total revenue FY2018 $22,959,129 Community service funds FY18 Expenditure summary Expenditure increase of $629,537 or 2.8% $807 thousand in staff, services and supplies to support adventures plus program growth. $278 thousand in staff, services and supplies to support school readiness program growth. $213 thousand reduction in central services to eliminate one-time costs budgeted in prior year for retirements and transition of staff. $153 thousand reduction in adult basic education corresponding to the reduction in revenue and program needs. $42 thousand reduction in adult Community Schools programming. 13

14 W-14 Expenditures Amended budget Proposed budget $ change % change Salaries $13,380,143 $13,679,730 $299, % Benefits $4,237,530 $4,283,173 $45, % Purchased services Community service funds FY18 Expenditure summary $2,928,550 $3,177,797 $249, % Supplies $1,660,588 $1,786,709 $126, % Capital $72,885 $3,500 ($69,385) -95.2% Other $31,155 $9,479 ($21,676) -69.6% Total expenditures $22,310,851 $22,940,388 $629, % Community service fund FY18 Expenditures by object Capital Expenditures $3,500 0% Other $9,479 0% Supplies $1,786,709 8% Purchased Services $3,177,797 14% Salaries & Benefits $17,962,903 78% Total expenditures FY2018 $22,940,388 14

15 W-15 Capital projects fund FY18 Revenue, expenditures and fund balance Revenue will remain at $0. Only projects over $2 million will be tracked in the capital projects fund. Expenditures decreasing by $2.4 million to $688 thousand. A portion of the 2014A certificates of participation bond interest payments will be made out of the capital projects fund to fully spend the remaining excess balance. Fund balance is projected to be $0. Capital projects fund FY18 Budget summary 15

16 W-16 Debt service fund FY18 Revenue, expenditures and fund balance Revenue is decreasing by $20 million due to the sale of refunding bonds in the prior year not reoccurring. Expenditures are increasing by $279 thousand due to reduced principal and interest payments. Fund balance is projected to be $21.3 million. $18.7 million is in an escrow account to pay off the 2009A other post employment benefits (OPEB) bonds in February Debt service fund FY18 Budget summary 16

17 W-17 Debt service fund FY18 Debt summary Debt service fund FY18 Debt summary Legal debt limit at 07/01/17 (15% of market value)...$2,951,864,324 Less outstanding debt subject to Limit...$ 23,665,000 Legal debt margin...$2,928,199,324 *OPEB debt is not subject to the legal debt margin limit. 17

18 W-18 Debt service fund FY18 Debt payments excluding escrow payments 12,000,000 10,000,000 10,023,145 9,819,395 9,814,603 Total principal and interest 8,000,000 6,000,000 4,000,000 2,000,000 1,929,403 1,943,503 - FY18 FY19 FY20 FY21 FY22 Trust fund FY18 Revenue, expenditures and fund balance Revenue projected to increase $75 thousand to $950,000. Investment revenue is linked to anticipated market value increase of the OPEB trust account. Expenditures are projected to decrease by $225 thousand to $1,300,000. $250 thousand decrease to remove retiree trust payments into the internal service fund. $25 thousand increase in scholarships. Fund balance is decreasing by $350 thousand to $32.6 million. $31 million is the projected balance of the OPEB trust. 18

19 W-19 Trust fund FY18 Budget summary Budget Proposed for all funds 19

20 W-20 Comments and questions ahschools.us 20