Budget. Enrollment Debt Service March 13, 2017

Transcription

1 Budget Enrollment Debt Service March 13,

2 Mission-Focused Budgeting All students are provided the opportunity and necessary support to engage in relevant, challenging work which contributes to their academic and social growth and development. All staff, teachers, and administrators are part of a larger learning community working together to build collective capacity in order to provide a high-quality, relevant, equitable education for all. 2

3 Enrollment 3

4 Enrollment Projections The Basics Historical Perspective Current Year s Data (actual vs. projected) Birth Data Cohort Survival Ratios Modified Cohort Survival Ratios Projections Elementary vs. Secondary Projections Other Factors 4

5 Historical Perspective Maplewood Annexation K , , , , , , , , , , , ,963 Total 5,648 5,528 5,512 5,479 5,435 5,346 5

6 2014 Surprise September 2014 unexpected increase in enrollment. K Projected 2, Actual 2,572 Difference Total 838 1,950 5, ,965 5,

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15 A 25 year high 15

16 Live Birth Data Projections Very difficult to predict. Use a MS Excel Formula and Trend Based upon last 5 years of data Factors include Nationwide demographics Local demographics Economy Weather 16

17 Enrollment Projections Cohort Survival Method How many students survive from birth to K How many students survive from K to 1st Grade and so on... 17

18 Enrollment Projections Modified Cohort Survival Method Use averaging to smooth out the results. Use of 3 year and 7 year averages. More weight given to most recent data. Multiple projections. 18

19 Enrollment Projections Projections to Historical Peaks - K-6 2, ,072 - Total 5,648 (2002) (2008) (2007) (2008) 19

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23 Enrollment Projections Total Enrollment Kindergarten through 12th Grade Projected enrollment surpasses historical high of 5,648 in Surpasses 6,000 in Surpasses 6,200 in Surpasses 6,400 in Surpasses 6,600 in

24 Enrollment Projections Other factors Trending Birth Data Survival Ratios Continued housing development Interest rates Land availability Type of Construction Other unknowns 24

25 Actions Taken to Date: District Administration has been forced to: Significantly increase class size. Utilize office space for instructional settings. Convert computer labs to classrooms. Transfer (and transport) students from their traditional elementary school zone to a different elementary school. Currently, 265 elementary students are currently being sent to an elementary school outside their traditional neighborhood school zone. 25

26 Class Size Comparison: Kindergarten 1st Grade 2nd Grade 3rd Grade 4th Grade 5th Grade 6th Grade Current Average 22 students 22 students 26 students 25 students 24 students 23 students 26 students * Projection 24 students 27 students 29 students 30 students 30 students 29 students 27 students *Assuming that no additional classrooms are available. 26

27 Future Considerations Continue to redistrict new students. Continue to increase class size. Consider the use of temporary classrooms. Seek voter approval for a building project to expand capacity at the elementary grade levels. 27

28 Questions 28

29 Debt Service 29

30 Existing Debt Service - Bonds Bonds - From previous capital construction projects. Three serial bonds outstanding. As of June 30, 2017 the balance of principal & interest outstanding will be $16,139,583. All current debt will be paid off by the end of Review of Debt Service Schedule Handout.

31 Existing Debt Service - Installment Lease Installment Lease - Purchase of Instructional Technology One installment lease outstanding. As of June 30, 2017 the balance of principal & interest outstanding will be $290,000. This debt will be paid off in

32 Debt Service Bond Principal Bond Interest Total Bond Payments Installment Principal Installment Interest Total Installment Payments $290, $3,465,000 $ 553,932 $4,018, $2,445,000 $ 433,313 $2,878,313 $283,343 $286,652 $ 6,658 $ 3,348 $290,001 32

33 Debt Service Payment Schedule A reduction of $1,140,619

34 Does North Colonie have a debt limit? Centralized school districts such as North Colonie have a statutory debt limit. This debt limit is 10 percent of the total full value of the property within the school district. The current full value in North Colonie is $4,720,824,182 therefore our debt limit is $472,082,418. Our current outstanding debt is $16,429,583 which is less than 3.5 percent of our debt limit. 34

35 Annual Debt Expense Annual Debt North Colonie Bethlehem Ballston Spa Niskayuna Guilderland Shenendehowa $4,018,932 $12,370,155 $6,955,548 $10,408,626 $7,084,859 $10,975,000 Total Budget % of Budget $105,338,269 $96,540,000 $88,459,730 $80,442,905 $96,590,045 $166,308, %* 12.8% 7.9% 12.9% 7.3% 6.6% *North Colonie debt expense drops to $2,878,313 or 2.7% in

36 Why is North Colonie well positioned for a major building project? Existing debt is very low. Some debt will be retired in and all existing debt will be retired in Current interest rates are very low. The strength of our bond rating (Aa2, AA stable). A very healthy tax base. The existing transfer to capital appropriation, which is currently $3.45M. The enhanced building aid ratio due to the Maplewood annexation. 36

37 Building Aid Capital projects are eligible for building aid based upon the aidability of the work and the aid ratio that the District is assigned. For projects funded by long term debt, both principal and interest payments qualify for building aid. Building aid will be paid over a period of 15, 20 or 30 years depending upon the scope of construction. 37

38 Enhanced Building Aid due to the Maplewood Annexation The Maplewood Common School District was annexed by North Colonie Central School District in Due to this annexation, North Colonie receives additional operating aid ($1,428,293 in ) and a higher building aid ratio (69 percent). The additional operating aid is reduced over time and ends after fifteen years. The higher building aid ratio expires 10 years after annexation or June 30, Therefore the building aid ratio would revert to 52 percent. If construction contracts are signed prior to that date, the higher aid ratio is locked in for the life of the bond. 38

39 Questions 39

40 What s next? Budget committee schedule: Wednesday, March 1, 7:00 p.m. Preliminary Budget Overview Monday, March 6, 7:00 p.m. Maintenance & Interfund Transfers Monday, March 13, 7:00 p.m. Debt Service & Enrollment Thursday, March 23, 7:00 p.m. Instructional Technology & Equipment Thursday, March 30, 7:00 p.m. Staffing, New Programs & Initiatives Monday, April 3, 7:00 p.m. Revenue & use of Fund Balance Wednesday, April 5, 7:00 p.m. (Adopt budget) May 3, 7:00 p.m. Budget hearing & Meet the BOE candidates night May 16: Annual Budget Vote & Board of Education Election 40