Projected Merged Budget &

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1 Antietam School District & Exeter Township School District Projected Merged Budget & March 26, 2014

2 BUDGET SUMMARY Exeter Township School District Projected Revenue 69,486,393 71,787,292 73,893,496 Projected Expenditures 71,508,238 75,090,217 77,666,196 Revenue Less Exp (2,021,845) (3,302,925) (3,772,700) Fund Balance Beg of Year 13,303,002 11,281,157 7,978,232 Increase (Decrease) (2,021,845) (3,302,925) (3,772,700) Fund Balance End of Year 11,281,157 7,978,232 4,205,532

3 BUDGET SUMMARY Antietam School District Projected Revenue 16,251,499 16,739,982 17,157,720 Projected Expenditures 16,951,299 17,726,628 18,254,108 Revenue Less Exp (699,800) (986,646) (1,096,388) Fund Balance Beg of Year 3,970,015 3,270,215 2,283,569 Increase (Decrease) (699,800) (986,646) (1,096,388) Fund Balance End of Year 3,270,215 2,283,569 1,187,181

4 BUDGET SUMMARY Merged District Projected Revenue 88,527,274 91,051,216 Projected Expenditures 92,816,845 95,920,304 Revenue Less Exp (4,289,571) (4,869,088) Revenue Adjustments (1,026,782) (1,034,078) Expenditure Adjustments (749,732) (749,732) Revenue Less Exp Adjustments (277,050) (284,346) Net Revenue Less Exp (4,566,621) (5,153,434) Fund Balance Beg of Year 14,551,372 9,984,751 Increase (Decrease) (4,566,621) (5,153,434) Fund Balance End of Year 9,984,751 4,831,317

5 REVENUE ASSUMPTIONS Local Revenues Real Estate Taxes increased by the projected adjusted index of 3% each year Loss of revenue reducing ASD millage to ETSD rate Minimal, if any, increases based on trend data State Revenues Social Security & Retirement driven by wages and contribution rates Flat funded Federal Revenues Flat funded

6 REAL ESTATE TAXES Exeter Township School District Assessed Value 1,399,820,252 1,402,619,893 1,405,425,133 Millage Real Estate Tax 42,239,000 43,645,000 45,232,000 Antietam School District Assessed Value 261,416, ,865, ,277,301 Millage Real Estate Tax 8,630,985 8,917,730 9,236,820

7 REAL ESTATE TAXES ASD Assessed Value at ETSD Millage Rate Assessed Value 261,865, ,277,301 Millage Real Estate Tax 7,890,948 8,202,742 Incr/(Decr) (1,026,782) (1,034,078) Merged Real Estate Taxes Assessed Value 1,664,485,181 1,667,702,434 Millage Real Estate Tax 51,535,948 53,434,742

8 General Fund Expense Assumptions: Projections through Combined District On-going Cost Savings and Increases Projections through Wage increase 2% to 2.5% Attritional Savings: $175k per year Benefits: HC 9%; PSERs 21.4% to 30.25%; All Other 2% to 2.5% Supplies, Equipment, Purchased Services 1.9% to 2.5% inflationary factor Special Education Contracted Services, Tuition 2.5% increase based on trend Fuel & Utilities 3.5% per year Insurance 5% per year Replacement Textbooks 2% per year Technology Planned cycle of equipment replacement Debt Service Per payment schedule Major Repairs & Improvements- Use of general fund commitments or funded with capital project funds Combined District On-going Cost Savings and Increases ASD EA assumes ETEA contract salary schedule and benefits Eliminate staff based on school configuration ; efficient class sizes; school building closures; duplicate administrative and support services. Increase in Unemployment Compensation Potential increase in staff due to larger student population in ETSD high school, and more students being transported as well as larger transportation fleet. Transportation vehicle and operating cost increases due to transporting a portion of ASD students due to school configuration and ETSD s established transportation practices. Technology cost increases due to additional licensing/maint/renewal, and SHS one-to-one laptop initiative. Curriculum Add l textbook costs Building Operation cost savings resulting from closing buildings Other Included Costs Music Equipment

9 Combined School Districts Exeter Township School District & Antietam School District Combined School District Configuration Enrollment = 4709 Enrollment Decline of 312 students from Projected Enrollment Building Capacity Close MP Primary Mt. Penn Elem K-5 Close Jkwld Lorane K-5 Owatin K-5 Reiffton K-5 AJHSH 6-8 EJH 6-8 ESH 9-12 Enrollment Projections: Source Civic Research Alliance Report

10 Teacher Contract Changes in a Combined School District ASD to assume ETSD Contract Teacher Salary Schedule Based on ETSD Contract Schedule compared to ASD schedule with 2% escalation factor per year through ASD Teachers to assume ETSD Salary Schedule Incremental Wage Increase based on Salary Schedule in $435,606 Net Wage related cost increase in FICA and Retirement in $ 72,942 Other Benefit enhancements for ASD teachers EXFLEX, Retirement Pay $104,400 Potential Column Movement for ASD staff to M15, M60 $ 87,559 TOTAL $700,507 Note: Impact of status/bargaining unit changes of support personnel are not included in this analysis.

11 Staffing Changes in a Combined School District Eliminate Positions 28.5 FTE s (Full Time Equivalents) (General fund positions only) Teachers 12 Buildings & Grounds 4.5 Business Office Staff/Child Accounting 3 Principals 2 Elementary Building Secretaries 2 Superintendent 1 Business Manager 1 Buildings & Grounds Supervisor 1 Superintendent's Secretary 1 Health Assistant Total Cost Savings $2,366,027 Note: The teaching staff reduction figure is a compromise between proposals discussed by Superintendent s which ranged from 5 to 27 staff cuts. The average cost savings per teacher is $95,301; 12 cuts saves $1,143,616.. Appropriate staffing will depend upon schedules and anticipated class size. Other positions to be eliminated are the result of (2) school building closures, and duplicate administrative and support services. (Changes to food service staff are not included in the analysis.)

12 Staffing Changes in a Combined School District Add Position 2 FTE Recommended by ASD and ETSD Assistant Principal HighSchool 1 Transportation Secretary/Sub Driver 1 Total Cost of Recommended Positions $166,901 Unemployment Compensation Cost Increase 2 Years $366,834 Bus Driver wage and benefit costs will increase due to an increase in routes and driver hours but for purposes of this analysis the additional costs related to transportation were aggregated.

13 Staffing Changes in a Combined School District Add Positions 4 FTE s Recommendation proposed by ETSD; rejected by ASD Special Ed Supervisor (elem/middle/hs) 1 Student Support/Alt Ed Supervisor 1 Security Support 1 Bus Mechanic 1 Total Cost of Recommended Positions $339,460 (Not included in Combined District costs)

14 Combined School District Transportation Operations Increased Costs Exeter Township SD/Antietam SD Merger Study Estimate of Transportation Costs Based on Projected Costs I. Three-Tier school schedules 9-12; 6-8; K-5 I. Capital Investment: QTY Total Bus Purchase Cost - 78 Passenger school bus $ 99,000 Each 3 $ 297,000 Wheel Chair Lift Equipped Buses $ 107,000 Each 1 $ 107,000 Boundary Requirements expand when Antietam 54 Passenger Buses for Additional Non-Public Transp are transported $ 82,000 Each 2 $ 164,000 Add'l Two-way radios $ 330 Each 12 $ 3,960 Total New Vehicle Cost $ 571,960 Option to Lease Additional Buses - Annual Payments - 5 yr term; 4.5% $ 130,300 (1) II. Operating Cost: Additional Regular Routes per day $ Per Day 3 $ 160,185 Additional Special Needs Wheel Chair Lift Equipped bus $ Per Day 1 $ 53,395 Additional Non-Public Transportation Requirements $ Per Day 2 $ 106,790 Add'l Staff - (1) Mechanic Included with Staffing - (1) Secretary/ Spare Driver Included with Staffing Additional hours - more square miles to cover on route $ 60,000 ( 25 vehicles; 30 min; 181 days = 2308 hours Additional Mileage Fuel - Antietam 5 square miles; 46k miles $ 17,300 Total Additional Operating Cost $ 397,670 (2) V. Transportation Subsidy; FICA & Retirement State Reimbursement Increase $ 170,998 (3) Net Increase in General Fund Expense (1) + (2) - (3) $ 356,972

15 Combined School District Ongoing Increased or Reduced Costs Technology & Other Technology Licensing, Maintenance, and Renewal $91,426 Senior High School One-to-One Initiative to include ASD 9-12 students (annual lease pymt.) $46,200 Musical Instrument Lease $20,000 Facility Operations Closing Mt.Penn Primary Center and Jacksonwald Elementary will reduce utility, telecommunication, copier rental, repair & maintenance, and cleaning supply costs. Reduction in staff reflected in staffing changes. Estimated reduction in costs ($141,438)

16 One Time Costs Consultant - 2 Years $ 224,640 Technology $ 209,800 Textbooks $ 153,000 Library Books $ 30,000 Moving Expense $ 100,000 Furniture and Other Bldg Accommodations $ 25,000 Total One Time Costs $ 742,440

17 Other Budget Impact Items to Consider in a Combined School District Compensated Absences Benefit Waiver Available Real Estate for lease or sale Professional Development Costs Charter School enrollment increase and tuition costs Textbook purchase costs for schedule changes Subsidy changes due to combined aide ratio Funding from state toward implementation of merger Legal Fees Unassigned fund balance limitation of 8% of budgeted expenditures will apply in a combined school district Fund Balance Commitments Capital Project and Capital Reserve Funds

18 Exeter Township School District Antietam School District Adjustments Adjustments Combined Combined Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection DESCRIPTION REVENUE Assessed Value 1,399,820,252 1,402,619,893 1,405,425, ,416, ,865, ,277,301 1,664,485,181 1,667,702,434 Local Sources Millage One Time/ Upfront Costs Real Estate Tax 42,239,000 43,645,000 45,232,000 8,630,985 8,917,730 9,236,820 (1,026,782) (1,034,078) 51,535,948 53,434,742 Interim Real Estate Tax 50,060 51,040 51,040 10,000 10,000 10,000 61,040 61,040 Occupational Priviledge Tax 80,100 80,100 80, ,100 80,100 Realty Transfer Tax 407, , ,049 65,650 66,307 66, , ,019 Earned Income Tax 3,599,807 3,684,807 3,771, , , ,726 4,449,882 4,544,533 Mercantile Tax 574, , , , ,377 Delinquent Real Estate Tax 1,255,200 1,258,200 1,261, , , ,000 1,623,200 1,626,200 Interest Income 80,000 80,000 80,000 12,000 12,000 12,000 92,000 92,000 Tuition 77,490 77,490 77,490 45,000 45,000 45, , ,490 IU Federal funds 653, , , , , , , ,538 Misc Other Local Sources 476, , , , , , , ,762 State Sources Total Local Sources 49,494,371 51,051,408 52,797,009 10,193,489 10,488,466 10,815,870 (1,026,782) (1,034,078) 60,513,092 62,578,801 3% 3% 3% 3% 3% 3% Basic Instructional Subsidy 8,142,874 8,142,874 8,142,874 3,124,782 3,124,782 3,124,782 11,267,656 11,267,656 Special Education Subsidy 1,775,959 1,775,959 1,775, , , ,797 2,271,756 2,271,756 Transportation Subsidy 965, , , , , ,000 1,078,690 1,078,690 Property Tax Reduction 1,360,000 1,360,000 1,360, , , ,000 1,816,000 1,816,000 Rental & Sinking Fund Payments 1,485,787 1,490,121 1,490,121 98,402 98,339 98,360 1,588,460 1,588,481 Revenue for FICA Payments 1,192,850 1,230,875 1,269, , , ,165 1,573,674 1,622,040 Revenue for Retirement Payments 4,154,603 4,856,106 5,177,709 1,127,137 1,311,599 1,392,546 6,167,705 6,570,255 Accountability & EAP Grants 180, , ,893 50,000 50,000 50, , ,893 Misc. Other State Subsidies 206, , ,039 65,200 65,200 65, , ,239 Total State Sources 19,464,695 20,208,557 20,569,160 5,864,010 6,057,516 6,147,850-26,266,073 26,717,010 4% 2% 3% 1% 4% 2% Federal Sources 525, , , , , , , ,327 Other Financing Sources 2,000 2,000 2, ,000 2,000 Projected Revenue 69,486,393 71,787,292 73,893,496 16,251,499 16,739,982 17,157,720 (1,026,782) (1,034,078) 87,500,492 90,017,138 3% 3% 3% 2% 3% 3% Proj Summ Index Tax Inc

19 Exeter Township School District Antietam School District Adjustments Adjustments Combined Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection One Time/ DESCRIPTION Upfront Costs EXPENDITURES Salaries 30,336,200 31,303,260 32,295,080 7,393,193 7,594,977 7,802,473 (850,809) (850,809) 38,047,428 39,246,744 3% 3% 3% 3% 3% 3% Benefits 19,085,178 21,160,715 22,581,023 4,550,745 5,037,701 5,363,527 (272,083) (272,083) 25,926,333 27,672,467 11% 7% 11% 6% 11% 7% Non-Payroll Expendtures: Professional & Technical Serv. 2,324,402 2,365,020 2,422, , , ,368 2,901,964 2,972, , Purchased Property Services 1,778,206 1,830,358 1,884, , , ,145 (54,338) (54,338) 2,338,297 2,408, Other Purchased Services 5,049,631 5,178,933 5,311,619 1,560,589 1,607,407 1,655,629 37,776 37,776 6,824,116 7,005, Supplies, Books, Heat/AC, Fuel 2,339,295 2,402,202 2,466, , , , , ,422 3,137,020 3,214, , Property 820, , ,062 35,000 35,000 35, , , , Dues, Interest, Claims 5,342,690 5,338,049 5,316, , , ,185 5,949,975 5,901, Principal Payment, Reserve 4,349,601 4,463,769 4,478,327 1,225,000 1,245,000 1,175, , ,300 5,859,069 5,803, Major Maintenance 4,000 4,000 4,000-4,000 4, Bldg Renovations /760 - Major Improvements 79, , , Transfer to Capital Reserve Projected Expenditures 71,508,238 75,090,217 77,666,196 16,951,299 17,726,628 18,254,108 (749,732) (749,732) 92,067,113 95,170, ,440 5% 3% 5% 3% 5% 3% Revenue Less Exp (2,021,845) (3,302,925) (3,772,700) (699,800) (986,646) (1,096,388) (277,050) (284,346) (4,566,621) (5,153,434) (742,440) Combined Fund Balance Beg of Year 13,303,002 11,281,157 7,978,232 3,970,015 3,270,215 2,283,569 14,551,372 9,984,751 Fund Balance End of Year 11,281,157 7,978,232 4,205,532 3,270,215 2,283,569 1,187,181 (277,050) (284,346) 9,984,751 4,831,317 Proj Summ Index Tax Inc

Lower Merion Board of School Directors

Lower Merion Board of School Directors INITIAL 2018-19 BUDGET PRESENTATION January 22, 2018 Some important highlights This presentation is an initial budget update not a Preliminary Budget. A Preliminary