Antietam School District & Exeter Township School District Projected Merged Budget 2016-17 & 2017-18 March 26, 2014
BUDGET SUMMARY Exeter Township School District 2015-2016 2016-2017 2017-2018 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
BUDGET SUMMARY Antietam School District 2015-2016 2016-2017 2017-2018 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
BUDGET SUMMARY Merged District 2016-2017 2017-2018 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
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
REAL ESTATE TAXES Exeter Township School District 2015-2016 2016-2017 2017-2018 Assessed Value 1,399,820,252 1,402,619,893 1,405,425,133 Millage 32.5753 33.5526 34.6598 Real Estate Tax 42,239,000 43,645,000 45,232,000 Antietam School District 2015-2016 2016-2017 2017-2018 Assessed Value 261,416,994 261,865,288 262,277,301 Millage 36.5900 37.6800 38.8100 Real Estate Tax 8,630,985 8,917,730 9,236,820
REAL ESTATE TAXES ASD Assessed Value at ETSD Millage Rate 2016-2017 2017-2018 Assessed Value 261,865,288 262,277,301 Millage 33.5526 34.6598 Real Estate Tax 7,890,948 8,202,742 Incr/(Decr) (1,026,782) (1,034,078) Merged Real Estate Taxes 2016-2017 2017-2018 Assessed Value 1,664,485,181 1,667,702,434 Millage 33.5526 34.6598 Real Estate Tax 51,535,948 53,434,742
General Fund Expense Assumptions: Projections through 2017-2018 Combined District On-going Cost Savings and Increases Projections through 2017-2018 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
1800 1600 Combined School Districts Exeter Township School District & Antietam School District Combined School District Configuration 2016-2017 Enrollment = 4709 Enrollment Decline of 312 students from 2013-14 1620 1550 1400 1200 1000 900 800 600 480 600 675 510500 600 700 625 570 570 700 Projected Enrollment Building Capacity 400 360 200 225 0 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
Teacher Contract Changes in a Combined School District ASD to assume ETSD Contract 2016-2017 Teacher Salary Schedule Based on ETSD 2015-16 Contract Schedule compared to 2012-13 ASD schedule with 2% escalation factor per year through 2015-16. 91 ASD Teachers to assume ETSD Salary Schedule Incremental Wage Increase based on Salary Schedule in 16-17 $435,606 Net Wage related cost increase in FICA and Retirement in 16-17 $ 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.
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 1 28.5 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.)
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.
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)
Combined School District Transportation Operations Increased Costs Exeter Township SD/Antietam SD Merger Study Estimate of Transportation Costs Based on Projected 2016-2017 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. 7-12 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 $ 295.00 Per Day 3 $ 160,185 Additional Special Needs Wheel Chair Lift Equipped bus $ 295.00 Per Day 1 $ 53,395 Additional Non-Public Transportation Requirements $ 295.00 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
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)
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
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
Exeter Township School District Antietam School District Adjustments Adjustments Combined Combined Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection DESCRIPTION 2015-2016 2016-2017 2017-2018 2015-2016 2016-2017 2017-2018 2016-2017 2017-2018 2016-2017 2017-2018 REVENUE Assessed Value 1,399,820,252 1,402,619,893 1,405,425,133 261,416,994 261,865,288 262,277,301 1,664,485,181 1,667,702,434 Local Sources Millage 32.5753 33.5526 34.6598 36.5900 37.6800 38.8100 33.5526 34.6598 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 80,100 Realty Transfer Tax 407,726 413,841 420,049 65,650 66,307 66,970 480,148 487,019 Earned Income Tax 3,599,807 3,684,807 3,771,807 757,500 765,075 772,726 4,449,882 4,544,533 Mercantile Tax 574,998 583,623 592,377 - - - 583,623 592,377 Delinquent Real Estate Tax 1,255,200 1,258,200 1,261,200 365,000 365,000 365,000 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 45,000 122,490 122,490 IU Federal funds 653,291 666,356 679,684 181,854 181,854 181,854 848,210 861,538 Misc Other Local Sources 476,700 510,950 551,262 125,500 125,500 125,500 636,450 676,762 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 1,775,959 495,797 495,797 495,797 2,271,756 2,271,756 Transportation Subsidy 965,690 965,690 965,690 113,000 113,000 113,000 1,078,690 1,078,690 Property Tax Reduction 1,360,000 1,360,000 1,360,000 456,000 456,000 456,000 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 1,269,875 333,692 342,799 352,165 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 180,893 180,893 180,893 50,000 50,000 50,000 230,893 230,893 Misc. Other State Subsidies 206,039 206,039 206,039 65,200 65,200 65,200 271,239 271,239 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 525,327 525,327 525,327 194,000 194,000 194,000 719,327 719,327 Other Financing Sources 2,000 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
Exeter Township School District Antietam School District Adjustments Adjustments Combined Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection One Time/ DESCRIPTION 2015-2016 2016-2017 2017-2018 2015-2016 2016-2017 2017-2018 2016-2017 2017-2018 2016-2017 2017-2018 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: 300 - Professional & Technical Serv. 2,324,402 2,365,020 2,422,010 523,848 536,944 550,368 2,901,964 2,972,378 324,640 400 - Purchased Property Services 1,778,206 1,830,358 1,884,090 545,900 562,277 579,145 (54,338) (54,338) 2,338,297 2,408,897 500 - 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 7,005,024 600 - Supplies, Books, Heat/AC, Fuel 2,339,295 2,402,202 2,466,863 483,313 495,396 507,781 239,422 239,422 3,137,020 3,214,066 183,000 700 - Property 820,035 895,911 907,062 35,000 35,000 35,000 930,911 942,062 234,800 800 - Dues, Interest, Claims 5,342,690 5,338,049 5,316,122 633,711 611,926 585,185 5,949,975 5,901,307 900 - Principal Payment, Reserve 4,349,601 4,463,769 4,478,327 1,225,000 1,245,000 1,175,000 150,300 150,300 5,859,069 5,803,627 430 - Major Maintenance 4,000 4,000 4,000-4,000 4,000 450 - Bldg Renovations - - - - 750/760 - Major Improvements 79,000 148,000 - - 148,000-900 - 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 95,170,572 742,440 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