Monday, April 28, 2014 Dr. Harold Sarver Memorial Library at HMS -7:00 p.m. Special Meeting

Hampton Township School District 4591 School Drive Allison Park, PA 15101 Monday, April 28, 2014 Dr. Harold Sarver Memorial Library at HMS -7:00 p.m. Special Meeting SPECIAL MEETING The Board of Directors of the Hampton Township School District welcomes comments from visitors, who are invited to address the Board at the beginning of the meeting. Speakers are asked to limit their comments to three to five minutes and if multiple speakers are addressing the same topic, we ask that you limit your collective remarks to 15 to 20 minutes. The Board will not discuss personnel matters in public. The Board holds a regularly scheduled work session for the purpose of examining proposals and recommendations made by the staff, public, legal counsel, consultants, or the Board. This process ensures a thorough review of all items before they are placed on the voting agenda. The public is encouraged to attend the Board Work Session. Thank you. Does anyone wish to address the Board at this time? VOTING AGENDA 1. Call to Order 7:00 p.m. Pledge of Allegiance 2. Roll Call 3. It is recommended and I move that the Board approves a change in status for Dr. Marguerite Imbarlina, from an Assistant High School Principal to the Principal at Hampton High School, at a salary TBD, effective July 1, 2014. Discussion: Action: Moved: Second: Aye: Nay: 4. Adjournment WORK SESSION - BUDGET AGENDA 1. Finance... Larry Vasko, Chair

HAMPTON TOWNSHIP SCHOOL DISTRICT APRIL 28, 2014 BUDGET WORK SESSION 7:00P.M. HAMPTON MIDDLE SCHOOL DR. HAROLD SARVER LIBRARY BUDGET WORK SESSION AGENDA TOPIC PRESENTER 1) *Enrollment Projections/Staffing Dr. Hoover/Mr. Finch 2) *June 30, 2014 Fund Balance Projection Dr. Hoover/Mr. Kline a) *Discussion of Transfer to Capital Projects Fund for Dr. Hoover /Mr. Kline Capital Reserve Items and/or High School Project 3) *2014 2015 Proposed Final Budget #2 Dr. Hoover/Mr. Kline Informational Item: *Allegheny County School District Millage Rates 5 Year History NOTE: It will be necessary for the Board to consider the approval of the Proposed Final Budget at the May 5, 2014 Work Session rather than at the Voting Meeting on May 12, 2014. According to state guidelines, there must be thirty (30) days between the approval of the Proposed Final Budget and the Final Budget. There are only twenty eight (28) days from the May 12, 2014 Voting Meeting to the June 9, 2014 Voting Meeting. *attachments

4/28/2014 HAMPTON TOWNSHIP SCHOOL DISTRICT ESTIMATED ENDING FUND BALANCE AS OF JUNE 30, 2014 Fund Balance Summary: Budget Variance 2013-14 2013-14 Favorable Description Budget Projected (Unfavorable) Beginning Unassigned Fund Balance (7/1/2013): 3,579,652 3,579,652 - * Add Projected 2013-14 Revenues Over (Under) Expenditures: (418,000) 163,681 581,681 ** Add: PSERS Stabilization Funds for 2013-14: 418,000 418,000 - Projected Ending Unassigned Fund Balance @ 6/30/2014: 3,579,652 4,161,333 581,681 *** Ending Unassigned Fund Balance as a % of 2014/2015 Budget: 9.09% Amount of Unassigned Fund Balance exceeding 8% of 14/15 Budget: 498,258 * - Detail of Revenues and Expenditures on Pages 2-5 ** - The PSERS Stabilization funds are appropriated from the District's committed fund balance; therefore at the end of the fiscal year, they will revert to the unassigned fund balance (unless a change is made to the PSERS Stabilization Fund or the surplus is designated for another purpose) *** - State Section 688 Guidelines state that the budgeted ending fund balance can not exceed 8% of the following year's budget if the District desires to increase the millage rate Unreserved Fund Balance History: Unreserved % of Following Year ending: Fund Balance $ Years Budget June 30, 2013 3,579,652 8.15% June 30, 2012 5,738,225 13.33% June 30, 2011 4,326,415 10.30% June 30, 2010 3,022,072 7.23% June 30, 2009 3,015,768 7.49% June 30, 2008 5,195,412 13.00% June 30, 2007 4,873,570 12.47% June 30, 2006 3,783,854 10.12% June 30, 2005 2,647,572 7.36% June 30, 2004 2,230,482 6.41% 1

4/28/2014 HAMPTON TOWNSHIP SCHOOL DISTRICT ESTIMATED ENDING FUND BALANCE AS OF JUNE 30, 2014 Fund Balance Summary: Budget Variance 2013-14 2013-14 Favorable Description Budget Projected (Unfavorable) REVENUES LOCAL REVENUES Real Estate Tax 26,161,393 26,400,000 238,607 Other Taxes 5,101,500 4,891,713 (209,787) Other Local Revenues 530,000 427,041 (102,959) Total Local Revenues 31,792,893 31,718,754 (74,139) STATE REVENUES Basic Subsidies 4,723,267 4,751,103 27,836 Special Education 1,440,427 1,448,222 7,795 Other State Subsidies 5,136,149 5,167,264 31,115 Total State Revenues 11,299,843 11,366,589 66,746 FEDERAL REVENUES Title II & Title V 155,000 145,000 (10,000) Other Federal Revenues 240,000 125,000 (115,000) Total Federal Revenues 395,000 270,000 (125,000) OTHER FUNDING SOURCES Sale of Fixed Assets 4,000 7,820 3,820 Total Other Funding Sources 4,000 7,820 3,820 Total Revenues 43,491,736 43,363,163 (128,573) EXPENDITURES INSTRUCTIONAL PROGRAMS Regular Programs Salaries & Employee Benefits 18,607,557 18,592,980 14,577 Other 1,410,006 1,362,975 47,031 Total 20,017,563 19,955,954 61,609 Special Programs Salaries & Employee Benefits 2,856,321 2,750,398 105,923 Other 589,037 596,792 (7,755) Total 3,445,358 3,347,190 98,168 2

4/28/2014 HAMPTON TOWNSHIP SCHOOL DISTRICT ESTIMATED ENDING FUND BALANCE AS OF JUNE 30, 2014 Fund Balance Summary: Budget Variance 2013-14 2013-14 Favorable Description Budget Projected (Unfavorable) Vocational Programs Salaries & Employee Benefits - - Other 566,420 566,420 - Total 566,420 566,420 - Other Instructional Programs Salaries & Employee Benefits 22,080 22,380 (300) Other 50,000-50,000 Total 72,080 22,380 49,700 TOTAL INSTRUCTIONAL 24,101,421 23,891,945 209,476 SUPPORT SERVICES Pupil Personnal Salaries & Employee Benefits 1,199,492 1,072,045 127,447 Other 22,495 62,381 (39,886) Total 1,221,987 1,134,426 87,561 Instructional Services Salaries & Employee Benefits 888,299 928,654 (40,355) Other 169,073 162,672 6,401 Total 1,057,372 1,091,326 (33,954) Administration Salaries & Employee Benefits 2,600,554 2,508,698 91,856 Other 577,902 543,850 34,052 Total 3,178,456 3,052,548 125,908 Health Services Salaries & Employee Benefits 479,985 460,396 19,589 Other 20,490 14,102 6,388 Total 500,475 474,498 25,977 Business Services Salaries & Employee Benefits 347,254 344,134 3,120 3

4/28/2014 HAMPTON TOWNSHIP SCHOOL DISTRICT ESTIMATED ENDING FUND BALANCE AS OF JUNE 30, 2014 Fund Balance Summary: Budget Variance 2013-14 2013-14 Favorable Description Budget Projected (Unfavorable) Other 30,900 25,797 5,103 Total 378,154 369,931 8,223 Plant Operation & Maintenance Salaries & Employee Benefits 2,533,582 2,539,308 (5,726) Other 1,480,608 1,429,528 51,080 Total 4,014,190 3,968,835 45,355 Transportation Salaries & Employee Benefits 33,059 29,670 3,389 Other 2,140,367 2,107,260 33,107 Total 2,173,426 2,136,930 36,496 Central Services Salaries & Employee Benefits 486,259 482,392 3,867 Other 228,771 225,377 3,394 Total 715,030 707,768 7,262 Other Services Salaries & Employee Benefits - - - Other 47,528 47,654 (126) Total 47,528 47,654 (126) TOTAL SUPPORT SERVICES 13,286,618 12,983,918 302,700 NON INSTRUCTIONAL SERVICES Student Activities Salaries & Employee Benefits 791,301 747,434 43,867 Other 366,637 376,109 (9,472) Total 1,157,938 1,123,543 34,395 TOTAL NON INSTRUCTIONAL 1,157,938 1,123,543 34,395 OTHER FINANCING USES Debt Service & Fund Transfers Salaries & Employee Benefits - - - 4

4/28/2014 HAMPTON TOWNSHIP SCHOOL DISTRICT ESTIMATED ENDING FUND BALANCE AS OF JUNE 30, 2014 Fund Balance Summary: Budget Variance 2013-14 2013-14 Favorable Description Budget Projected (Unfavorable) Other 5,363,759 5,200,076 163,683 Total 5,363,759 5,200,076 163,683 TOTAL OTHER FINANCING USES 5,363,759 5,200,076 163,683 TOTAL EXPENDITURES 43,909,736 43,199,482 710,254 Revenues Over (Under) Expenditures (418,000) 163,681 581,681 5

HAMPTON TOWNSHIP SCHOOL DISTRICT 4/28/2014 PROJECTED 2015-16 BUDGET WITH / WITHOUT TAX INCREASE IN 2014-15 BUDGET Projection #1 Projection #2 Projection #3 Projection #4 Projection #5 Projection #6 Tax Increase of Tax Increase of Tax Increase of Tax Increase of No Tax Increase No Tax Increase 0.33 mills to balance 0.33 mills to balance 0.33 mills to balance 0.33 mills to balance to 2014-15 Budget to 2014-15 Budget 2014-15 Budget with 2014-15 Budget with 2014-15 Budget with 2014-15 Budget with $7.5 million with $7.5 million $6.5 million bond issue $6.5 million bond issue $7.5 million bond issue $7.5 million bond issue bond issue bond issue Description "wrapped" debt service level debt service "wrapped" debt service level debt service "wrapped" debt service level debt service Projected 2015-16 Revenues: 46,190,000 46,190,000 46,190,000 46,190,000 45,690,000 45,690,000 Projected 2015-16 Expenditures (without HS debt): (47,650,000) (47,650,000) (47,650,000) (47,650,000) (47,650,000) (47,650,000) 2015-16 Debt Payment for HS Project @ $7.5 million (280,000) (455,000) (320,000) (530,000) (320,000) (530,000) Gross 2015-16 Shortfall: (1,740,000) (1,915,000) (1,780,000) (1,990,000) (2,280,000) (2,490,000) 2015-16 PSERS Stabilization Fund allocation: 722,000 722,000 722,000 722,000 722,000 722,000 Net 2015-16 Shortfall: (1,018,000) (1,193,000) (1,058,000) (1,268,000) (1,558,000) (1,768,000) Millage Equivalent of 2015-16 Shortfall 0.67 0.79 0.70 0.84 1.03 1.17 % Millage Rate Increase 3.73% 4.37% 3.90% 4.67% 5.85% 6.63% Projected 2015-16 Act 1 Index 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Additional Funds "above" Act 1 Index to balance budget 271,000 446,000 311,000 521,000 825,000 1,035,000 Projected Allowable PSERS Exception 412,000 412,000 412,000 412,000 412,000 412,000 Can 2015-16 Budget be balanced with Act 1 Increase + the PSERS exception? Yes Likely Yes Likely Unlikely Unlikely Options #1 and #2 assume a balanced 2014-15 budget and a transfer of $1,000,000 to the capital projects fund to reduce the debt issuance for the potential high school project. (bond issue of $6.5 million) Options #3 and #4 assume a balanced 2014-15 budget without the transfer to the capital projects fund (bond issue of $7.5 million) Options #5 and #6 assume the utilization of unassigned fund balance (forgoing a tax increase) to balance the 2014-15 budget and a bond issue of $7.5 million.

Allegheny County School Districts 5 Year Millage Rate History School District Name 2013-14 2012-13 2011-12 2010-11 2009-10 McKeesport 15.22 17.49 17.05 16.71 16.71 Chartiers Valley 16.22 19.88 19.88 19.88 19.32 Montour 16.90 18.90 18.90 18.90 18.90 Quaker Valley 16.93 21.25 20.95 20.70 19.75 North Hills 17.06 21.26 20.91 19.91 19.35 South Allegheny 17.24 18.49 18.49 18.11 18.11 North Allegheny 17.40 20.92 20.26 19.74 18.99 Duquesne 17.50 21.10 21.10 21.10 21.10 Hampton Township School District 17.59 21.35 21.35 20.88 20.88 Avonworth 17.70 20.94 20.00 20.00 19.30 West Jefferson Hills 18.10 21.08 21.08 21.08 21.08 Moon Area 18.12 21.30 21.30 21.30 21.30 Fox Chapel 18.45 21.56 21.56 21.26 20.78 West Allegheny 18.51 22.00 22.00 22.00 22.00 Gateway 18.62 21.85 21.02 21.02 19.41 Keystone Oaks 18.63 22.03 22.03 22.03 21.31 Plum 18.76 22.20 22.20 22.20 22.20 Carlynton 19.09 23.15 23.15 24.15 24.15 Pine Richland 19.21 22.82 21.91 21.91 20.20 Baldwin-Whitehall 19.61 23.40 23.40 23.40 23.50 Allegheny Valley 19.95 23.46 23.46 23.46 23.46 West Mifflin 20.46 22.99 22.99 22.99 22.99 Elizabeth Forward 20.61 25.01 25.01 23.76 23.51 Shaler 20.76 25.63 25.63 25.63 24.70 Riverview 21.18 25.36 24.79 24.05 23.26 Steel Valley 21.31 24.16 24.16 24.07 21.21 Upper St. Clair 21.41 25.72 24.10 23.77 23.37 Woodland Hills 21.80 26.21 25.65 25.65 25.65 South Park 21.85 25.99 25.99 25.99 25.99 Bethel Park 21.86 25.49 24.97 24.56 23.73 Deer Lakes 21.95 26.69 26.69 26.25 26.25 Mt. Lebanon 22.61 27.13 26.63 26.63 24.11 Cornell 22.75 26.55 25.96 24.11 22.93 Sto - Rox 23.19 25.00 25.00 25.00 25.00 Penn Hills 23.47 24.81 24.81 24.81 24.81 Northgate 23.71 28.60 28.60 27.60 24.50 Highlands 23.80 26.41 26.41 24.41 23.71 South Fayette 24.71 28.82 27.83 24.88 24.04 Brentwood 24.80 28.27 28.27 28.27 28.27 Clairton 25.25 26.80 25.79 25.79 22.00 East Allegheny 27.54 27.54 27.54 27.54 26.54 Wilkinsburg 32.63 36.67 35.00 35.00 35.00 County Wide Average 20.58 23.96 23.66 23.35 22.70 Hampton Township Schools Millage 17.59 21.35 21.35 20.88 20.88 Difference - Favorable (Unfavorable) 2.99 2.61 2.31 2.47 1.82 Difference % - Favorable (Unfavorable) 14.54% 10.89% 9.77% 10.56% 8.01% Hampton Millage Ranking (1 = lowest) 9 12 12 9 12