Carr, Riggs and Ingram used revenue estimates and projections as described and calculated in the feasibility study produced by Dr. Ira Harvey.

Transcription

1 2

2 The following pro-forma budget projection scenario uses revenue sources as described and calculated in the feasibility study produced by Dr. Ira Harvey along with projected expenses estimated by Carr, Riggs, and Ingram to administer Gardendale s separate school system at an improved level above the anticipated status quo level. The total number of teachers were increased by 10% (approximately 13 teacher units) resulting in an additional salary cost of $871,000 and increasing direct classroom expenses by $67,000. Also, debt service costs were increased $316,554 which could theoretically support debt principal of $4,600,000 at 3.5% over 20 years. Capital outlay costs were also increased by $250,000 annually for a total estimated capital outlay cost of $500,000. The remaining expenses in this pro-forma budget projection remained equal to the first status quo version based on the methodologies described in the Budget Methodologies section below. This scenario illustrates only one of many scenarios that a future school board and superintendent could use to better the school system. Budget Methodologies Carr, Riggs and Ingram was engaged by the Gardendale City Council to prepare pro-forma budget projections for the anticipated Gardendale City School System. A pro-forma budget is generally defined as a statement provided in advance to describe items of the financial position of an administration for a definite period of time based on estimates of expenditures during the period and proposals for financing them. Carr, Riggs and Ingram used revenue estimates and projections as described and calculated in the feasibility study produced by Dr. Ira Harvey. Carr, Riggs and Ingram used the following methods to develop expense projections for the pro-forma budget: 1. Detailed analysis of 3 local school systems with ADMs (student counts) ranging from 3000 to Budget information obtained from the State Department of Education website related to Gardendale Local Schools as generated by Jefferson County Board of Education. 3. Summarized analysis of budget and actual income statements of 6 school systems with ADMs ranging from 2500 to Information obtained from the State Department of Education website related to Gardendale Local Schools personnel counts. 5. Interviews and consultations with 3 local school system Chief School Finance Officers (CSFOs). 6. Review of budget theory by State Department of Education officials. 7. Review of budget theory by 2 local CSFOs. One must remember, the pro-forma budget projections created by Carr, Riggs, and Ingram are only estimates and scenarios based on projected factors such as anticipated revenue funding, ADM, teacher units, support personnel, buses, fixed asset conditions and many other items. Revenue projections could be adversely affected by State proration or any other government funding cuts which could impact future expenses. A budget employed by a future Gardendale School system will be created by a local School Board and Superintendent that are yet to be selected. The ultimate official Gardendale School System budget will vary from these pro-forma budget projections.

3 The certified public accounting firm of Carr, Riggs & Ingram specializes in providing comprehensive audit, accounting and consulting services to the governmental sector. Their firm- wide experience encompasses serving over 150 governmental entities including cities, school systems, and other governmental agencies. Specifically, Carr, Riggs, and Ingram audits and provides consultation to over 30 school systems firm- wide. Their Birmingham office audits six local school systems in the Gardendale area. Jason Harpe and Brian Barksdale are partners in the Carr, Riggs, and Ingram Birmingham office and they have focused on providing auditing and consultation to school boards for over 50 years combined. Carr, Riggs, and Ingram have steadily developed a reputation for innovation, knowledge, excellence, and expertise in the school system arena. They have the expertise in school system accounting to provide the pro- forma budgeting services that the City feels is an important component of the due diligence required during the discussions about the potential formation of the Gardendale School System.

4 Key Term Defini=ons PRO FORMA Provided in advance to prescribe form or describe items. BUDGET A statement of the financial posi=on of an administra=on for a definite period of =me based on es=mates of expenditures during the period and proposals for financing them. Source: Merriam Webster s Dic=onary

5 Key Term Defini=on ADM Average Daily Membership = Student Count

6 Budget methodology 1. Detailed analysis of 3 local school systems with ADMs ranging from 3000 to Budget informa=on obtained from the State Department of Educa=on website related to Gardendale Schools as generated by Jefferson County BOE. 3. Summarized analysis of budget and actual income statements of 6 school systems with ADMs ranging from 2500 to 2800.

7 Budget methodology contd. 4. Informa=on obtained from the State Department of Educa=on website related to Gardendale local schools personnel counts. 5. Interviews and consulta=ons with three local system CSFOs. 6. Reviewed by Start Department of Educa=on officials. 7. Reviewed by 2 local CSFOs.

8 Gardendale City Board of Education Pro-Forma Budget - All Funds Combined September 30, 201X Version 2 Pro-Forma Budgeted Amounts All Funds Revenues State 11,468,559 Federal 1,956,078 Local 7,359, mill property tax 2,000,000 Other 57,357 Total revenues 22,841,119 Expenditures Current: Instructional services 10,878,000 Instructional support 3,720,000 Operation and maintenance 2,231,200 Auxiliary services 2,121,725 General administration and central support 1,536,000 Public and non-public local school funds 597,348 Debt service 370,106 Debt service - new 316,555 Capital outlay 500,000 Total expenditures 22,270,933 Excess (deficiency) of revenues over expenditures 570,186

9 Gardendale City Schools Annual Instructional Services Budget Expenses 4 Schools 126 Teachers (see Harvey report) plus 8 Local and Federal funded units Account Description Positions ADM = 2214 Average teacher salary including benefits ($47, % benefits) Estimated budget amount Full time teacher positions , ,710, % more teachers , , Support personnel 28 20, , Direct classroom expenses , , Estimated grand total 10,878,000.00

10 Gardendale City Schools Annual Instructional Support Budget Expenses 4 Schools Account Description Estimated Budget Amount Guidance counseling 387, School nurses 222, Social Services 27, Speech pathologist 60, Other student support services 200, Transportation director 65, Trade/Technical School Coordinator 65, Staff development 70, Library 285, Other staff services 15, School administration 1,284, Other related services 85, Other student support 31, Staff development 50, Media services other 10, Athletic supplements 166, CNP Program manager 30, Career technical and trade school 150, Alternative school 92, Burkett Center 310, Substitute teacher pay 100, Other 15, Estimated grand total 3,720,000.00

11 Gardendale City Schools Annual Operation and Maintenance Budget Expenses 4 schools Account Description Estimated budget amount Building services security 20, Building services maintenance staff 180, Building services custodial salaries (before benefits) 420, Building services other pay 36, Building services P&C insurance 75, Building services software maintenance 2, Building services building repair and maintenance 75, Building services equipment rental services 50, Building services contract custodial services 50, Building services garbage and waste disposal contract 50, Building utilities mobile communications 120, Building utilities electricity 624, Building utilities water and sewer 125, Building utilities natural gas 45, Building services insurance services 66, Building services janitorial supplies 50, Building services maintenance supplies 50, Building miscellaneous expense 50, Grounds services land and building repairs 50, Maintenance vehicles service and upkeep 7, Maintenance secretary 35, Maintenance shop costs 50, Estimated grand total 2,231,200.00

12 Gardendale City Schools Annual Auxiliary Services Budget Expenses Bus Operations and Child Nutrition Account Description 2012 Report Balance 2011 Report Balance 2010 Report Balance Estimated budget amount Bus costs local school basis of 12 Buses 292, , , , CNP Costs Elementary Snow Rogers Middle High Proposed ADM Current ADM , % % % % Amount per 2013 JCBOE budget 481, , , , Based on JCBOE budget adjusted for ADM count reductions per Study 438, , , , ,227, Transportation supplies 11, , , , Estimated total 1,821, Diseconomy of scale and additional cushion as recommended by Dr. Harvey's report. 300, Estimated grand total 2,121,724.95

13 Gardendale City Schools Annual General Administration and Central Support Budget 4 Schools Estimated Account Description budget amount General Board services 160, Superintendent office 300, Special Area Executive Coordinator 77, Accounting department 295, IT Department 398, Central office support 165, Special area executive supervisor 50, Clerks and miscellaneous personnel costs 55, Board compensation 36, Estimated grand total 1,536,000.00

14 Gardendale City Schools Annual Other Expense Budget Expenses Extended day, Pre school, Community Education, Items for resale 4 Schools Account Description 2012 Report Balance 2011 Report Balance 2010 Report Balance 3 year average local school per ADM 3044 Gardendale per ADM 2214 Gardendale Estimate Total extended day care 88, , , , , , Total pre school 1,234, ,236, ,247, ,239, , , Total other expenditures 236, , , , , , Total community education 132, , , , , , Estimated grand total 1,691, ,653, ,647, ,664, ,210,328.01

15 Gardendale City Schools Annual Debt Service Budget 4 Schools Description Estimated budget amount Required debt service on assumed Jefferson County debt 370, Potential leftover funds for capital outlay OR new debt 316,554.54

16 Gardendale City Schools Annual Debt Service Budget 4 Schools Description Estimated budget amount Capital outlay 500,000.00