Wheatland-Chili Central Schools Budget Development General Support, Community Services, Transfers, and Debt Services

Transcription

1 Wheatland-Chili Central Schools Budget Development General Support, Community Services, Transfers, and Debt Services January 12, 2015 Board of Education Meeting

2 District Objectives Build a budget that: Supports Board of Education goals Preserves District assets Is fiscally responsible, reasonable, and balanced Build the budget with future budgets in mind: Assess dependence on appropriated fund balance Thorough analysis of five-year plan for use of reserves 2

3 Board of Education Priorities Encourage all students to do better. Improve communications and customer service. 3

4 District s Strategic Focus To provide academic excellence, which empowers all individuals to become motivated learners. To provide and maintain systems to support open communications with all stakeholders (Communication and Parent Involvement). To provide a competitive educational program that is sustainable for the community (Fiscal Accountability). To provide systems necessary for a clean, safe, and healthy environment to support the educational program (Operations). 4

5 Budget Development Timeline Date January 12 January 26 February 9 February 23 March 9 March 23 April 13 May 11 May 19 June 16 Presentation General Support, Community Services, Transfers, and Debt Services General Support (Facilities) and Transportation Instruction (Pupil Services, Special Education, BOCES) Instruction (Elementary, Secondary, Sports, Co- Curricular, Technology) and Employee Benefits Review Draft Budget Review Draft Budget Adoption of Proposed Budget Budget Hearing and Meet the Candidate Night Budget Vote Statewide Budget Revote Day 5

6 Budget Views Areas of Expenditure Budget View by Function Codes (general types of expenses) Three-Part Budget Summary View of Budget as Required by SED Regulations 6

7 Areas of Expenditure (function codes) Expenditure codes are arranged by functional unit and object of expenditure. The term function refers to the primary classification and description as to purpose (what was the purpose of the expenditure). The first four digits identify the function: General Support Instruction Transportation Community Service Employee Benefits Debt Service Interfund Transfers Each function is further subdivided to better classify the expenditure. For example, expenditure code 1325 in the General Support function identifies the Treasurer s Office within the financial office of the school district. 7

8 Three-Part Budget (Function Codes) Budget Type Administrative Program Capital Components Overall general support and management of the operations of the District: Board of Education costs Central and school administration Finance (including tax collection, purchasing, legal and auditing expenses) Curriculum development BOCES administrative expenses Largest portion of all planned expenditures for instruction and support services: Instructional, co-curricular, and athletic programs Counseling and health services Pupil transportation Costs associated with maintaining facilities and grounds: Building and equipment repairs Custodial and maintenance supplies Utilities Debt service 8

9 What do we know about the Budget? Major Non-Discretionary Expenses Employment contract provisions to meet instructional needs (salaries and benefits) Employer retirement costs, social security, unemployment (rates as mandated) Debt payments (similar to mortgage payments) BOCES administrative costs Auditing services (required by law) Services for special education students (tuitions and related services) Materials and textbooks required for instruction Utilities (electricity, heat, telephone, etc.) Transportation costs (as required by law) 9

10 Proposed Base Budget (by function codes) General Support Community Services, Transfers, and Debt Services 10

11 What do we know about General Support? Board of Education Membership in Monroe County School Boards and New York State School Boards Associations BOCES Policy Maintenance (Erie I BOCES) Legal Notices, Board Clerk Expenses, Annual Voting Expenses Central Administration Superintendent s Office: salaries and benefits, supplies, professional development Finance Business Office: salaries and benefits, supplies Auditing: internal auditor, external auditor, claims auditor Fiscal Planning and Advisory Services Tax Collection Treasury and Purchasing Functions 11

12 General Support (Continued) Other Costs Legal Expenses, including Labor Relations Service (Monroe #2 BOCES) Personnel: recruiting and fingerprinting (Monroe #2 BOCES) Public Information: newsletters, calendars, and legal notices Central Data Processing: financial management system Liability and Property Insurance BOCES Administrative Costs Facilities To be discussed at January 26, 2015 Board meeting 12

13 General Support (Continued) Type / Codes Dollar Amount Board of Education / Central Administration ( ) $263,462 Finance ( ) $304,447 Personnel / Public Information Services ( ) $118,710 Central Services ( ) $49,784 Special Items ( ) $165,889 TOTAL COST * $902,292 *Planning assumption for General Support Base Budget is 2.5% increase from Original Budget o General support also includes Facility Operations to be discussed at 1/26/15 Board meeting 13

14 What do we know about Community Services, Transfers, and Debt Services? Type (9901) Dollar Amount Transfer to Special Aid Funds 35,375 TOTAL COST $35,375 Type (7310) Dollar Amount Community Service (After School Program) 1,150 TOTAL COST $1,150 14

15 Community Services, Transfers, and Debt Services (Continued) Type (9901) Annual payments on serial bonds issued to fund past capital building projects Bonds Issued 2004 Bonds issued 2009 Bond Anticipation Note (BAN) issued 2014 Dollar Amount $0 $803,825 $467,615 Energy Performance Contract $108,960 TOTAL FIXED COST $1,380,400 15

16 Budget Variables for Revenues Anticipating a 1.5% increase in state aid Allowable levy growth (tax levy limit) is at 1.56% before exclusions (from 1.66% in ) District projections are based on 3% tax levy limit Planned decrease in use of Reserves based on five-year plan ($184,519): Decrease in use of ERS/Other Reserve from $200,000 in to $150,000 in ($50,000 less) Exhausted Debt Service Reserve in through use of $70,471 Decrease in use of appropriated fund balance from $326,616 in to $262,568 in ($64,048 less) 16

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18 Budget Variables for Expenses Increase in expenses from to : 2.5% increase in general support, instruction (pupil services, special education, BOCES, elementary, secondary, sports, co-curricular, technology), and pupil transportation 4.85% increase in benefits Decrease in expenses from to : 22.99% decrease in Teachers Retirement System (TRS) (from 17.53% to 13.5%) 9.45% decrease in Employees Retirement System (ERS) (20.1% to 18.2%) 18

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20 What is our starting point based on the budget variables? We are limited in our ability to raise additional revenue due to the tax levy limit To stay within a tax levy limit of 3%, assuming 1.5% increase in state aid, we have $420,584 of expenses that are not covered by revenues The amount of this difference will change as Revenues are better defined through our tax levy limit and state aid numbers Expenses are adjusted to align with revenues 20

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22 PROPOSED BUDGET Summary of Appropriation (By Function) Actual Expenditures Adopted Budget Adjusted Budget Proposed Base Budget Adopted vs. Proposed Base Budget Variance * Budget Variance Amount % General Support $ 1,774,234 $ 1,945,244 $ 1,967,781 $ 1,993,875 48, % Instruction 8,105,851 8,022,716 8,073,006 8,320, , % Pupil Transportation 787, , , ,535 19, % Employee Benefits 3,765,658 4,656,250 4,656,250 4,881, , % Community Services, Transfers, and Debt Services Community Service - 1,150 1,150 1, % Debt Service/Transfers to Debt Service 1,159,735 1,233,350 1,233,350 1,380, , % Transfers to Capital/Capital Reserve Fund % Transfer to Special Aid Fund 33,140 32,650 32,650 35,375 2, % TOTAL $ 15,625,715 $ 16,680,175 $ 16,759,963 $ 17,420,959 $ 740, % * Adjusted Budget increase is attributable to the $79,788 carryover encumbrances from the fiscal year.

23 Summary by Function Pupil Transportation 4.64% Instruction 47.76% Employee Benefits 28.02% General Support 11.45% Community Services, Transfers, and Debt Services 8.13%

24 Budget Development Process Follow the approved timeline Continue to explore staff assignments Work with leadership to adjust expenses to align with revenues 24

25 BUDGET DEVELOPMENT PROCESS January 26, 2015 General Support (Facilities) Transportation 25