Public Hearing FY 2019 Tentative Budget July 31, 2018 1
Agenda Presentation of proposed millage Presentation of proposed budget Superintendent s comments Public comments Board discussion Adoption of total millage Adoption of 2018 19 Tentative Budget and establishment of date for final hearing 2
Property Taxes Residential Commercial Buildings 3
Property Taxes Just Value (Property Appraiser) Less: Save Our Homes Cap (Legislature) Equals: Assessed Value Less: Exemptions (Legislature) Equals: Taxable Value Times: Millage Rate (Legislature and Board) Equals: Property Taxes 4
200.0 EDR Estimates Orange Taxable Values as of January 2018 180.0 160.0 140.0 120.0 In Billions 100.0 80.0 60.0 40.0 20.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5
Millage Rate Comparison Description 2017-18 2018-19 Change Required Local Effort 4.222 4.051 (0.171) Discretionary 0.748 0.748 - Additional Voted Millage 1.000 1.000 - Subtotal Operating 5.970 5.799 (0.171) Capital Projects 1.500 1.500 - Total Millage 7.470 7.299 (0.171) 6
OCPS Millage Rates 10.00 9.00 5.425 Required Local Effort Critical, 0.2500 5.3960 Sp. Millage 1.0000 5.2970 1.0000 5.2300 1.0000 5.1140 1.0000 5.2260 1.0000 4.9700 1.0000 4.5630 1.0000 4.2220 Sp. Millage 1.0000 RLE 4.0510 8.00 7.00 6.00 5.00 4.00 3.00 Cap Millage 1.5000 Disc Mill 0.7480 FY10 1.5000 0.7480 FY11 1.5000 0.7480 FY12 1.5000 0.7480 FY13 1.5000 0.7480 FY14 1.5000 0.7480 FY15 1.5000 0.7480 FY16 1.5000 0.7480 FY17 1.5000 0.7480 FY18 Cap. Millage 1.5000 Disc. Mill 0.7480 FY19 2.00 1.00 0.00 7
Rolled Back Rate Current Year Taxable Values Less: New Construction and Additions Equals: Current Year Adjusted Taxable Values Times: Rolled Back Rate (millage rate) Equals: Prior Year Tax Proceeds 8
Rolled Back Rate Required Local Effort 2.38% over the rolledback rate Total Millage 4.25% over the rolled back rate 9
Homeowner Impact with Save Our Homes Home Just Value Prior Year $ 182,689 Less Homestead Exemption $ 25,000 Taxable Value Prior Year $ 157,689 Taxes Paid Prior Year $ 1,178 Home Just Value Current Year $ 186,000 Less Homestead Exemption $ 25,000 Taxable Value Current Year $ 161,000 Taxes Proposed Current Year $ 1,175 Net Change in Taxes $ (3) 10
Commercial Owner Impact Property Just Value Prior Year $ 937,207 Less Homestead Exemption $ Taxable Value Prior Year $ 937,207 Taxes Paid Prior Year $ 7,001 Property Just Value Current Year $ 1,000,000 Less Homestead Exemption $ Taxable Value Current Year $ 1,000,000 Taxes Proposed Current Year $ 7,299 Net Change in Taxes $ 298 11
Proposed Annual Budget 2018 19 12
Timeline of Budget Process Community input and legislative priorities Fall Governor s Budget November Final EDR Forecast January Legislative Session January through March Budget Committee meetings January through March Initial school allocations March Board work sessions March, May, and June Proposed millage and budget advertised July 29 Public hearing July 31 Public hearing September 11 13
Budget Summary Compensation to employees Increased dollars for safety and mental health Maintains focus on district s strategic plan Preserves academic programs, retains highly qualified teachers, and protects arts, athletics and student activities 14
Summary of Five Funds Fund 2017 18 2018 19 Difference General 2,070,863,496 2,158,431,891 87,568,395 Debt Service 221,948,485 222,036,313 87,828 Capital Projects* 1,705,341,810 1,043,012,025 (662,329,785) Special Revenue** 155,965,850 167,105,665 11,139,815 Internal Service 337,797,423 336,015,721 (1,781,702) Totals 4,491,917,064 3,926,601,615 (565,315,449) *Includes carry over projects for 2017 18 only. **Food Service only, other grant awards to be amended into budget as approved. 15
General Fund 16
General Fund Budget $2,158,431,891 Operating budget of the school district Primary source is the Florida Education Finance Program (FEFP) Funding is equalized per student statewide Revenues are primarily from state sales taxes and local property taxes Also includes revenues from additional voted millage not to exceed 4 years 17
Estimated Revenue 18
250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000 170,000 160,000 FTE Actual and Forecast 150,000 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19
45% Total State Appropriations (All Funds) 40% 35% 30% 25% 20% 15% 10% 5% 2015 16 2016 17 2017 18 2018 19 0% 20
70% Education Appropriations (All Funds) 60% 50% 40% 30% 2015 16 2016 17 2017 18 2018 19 20% 10% 0% Early Learning Public Schools Community Colleges Universities Other 21
9,000.00 Budgeted Funding Per Student Second Calculation FEFP With CPI Comparison 8,500.00 8,000.00 7,500.00 7,000.00 6,500.00 6,000.00 7,309.24 6,988.29 360.11 6,530.42 123.53 339.16 6,447.36 468.97 210.64 6,228.17 452.48 6,346.25 466.16 6,735.24 491.16 6,883.27 551.32 7,057.07 585.43 7,120.32 630.39 7,231.06 658.98 7,343.01 July 2007 July 2008 July 2009 July 2010 July 2011 July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 2018 $749 Less State Funding Federal Stimulus Critical Needs Millage Edu Jobs One Mill CPI 22
Percentage of State General Revenue Going to Education 70 65 60 Percent 55 50 45 40 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 171819 Fiscal Year End 23
80 Percentage of General Revenue to Public Schools 75 70 Percent 65 60 72.6 71.7 71.8 71.4 69.2 70.3 55 50 FY14 FY15 FY16 FY17 FY18 FY19 Fiscal Year End 24
100% Lottery Appropriations for Florida Reflects How Lottery Funds Were Dispersed to Education 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Public Schools Classrooms First & CSR Construction Community Colleges State Universities State Other 25
Estimated Revenues by Source Federal, 0.62% Local, 47.36% State, 51.93% 26
Appropriations 27
Priorities Compensation to employees Increase School Resource Officers Increase safety measures Increase Mental Health support Preserve academic programs Retain highly qualified teachers Protect arts, athletics, and student activities 28
Other Budget Items Health insurance no increase Florida Retirement System rate increases Professional development days Continue progress towards new SIS 29
General Fund Budgeted Appropriations by Function 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 2015-16 2016-17 2017-18 2018-19 20.0% 10.0% 0.0% Instr. & Instr Support School Administration Plant Operation & Maint. Transportation General Support General Admin. & Board Community & Debt Serv. 30
Capital Projects Fund 31
Capital Projects Fund Budget $1,043,012,025 Primary revenue sources sales surtax, property tax, impact fee Minimal state support Primary uses are for comprehensive renovations, new schools, capital renewal, and debt service & operations 32
700.00 Budgeted Capital Revenues by Source 600.00 500.00 In Millions 400.00 300.00 200.00 Other State PECO Other Local Sales Taxes Impact Fees Property Taxes 100.00 2019 2020 2021 2022 2023 Fiscal Year 33
Capital Projects Use of Funds (Excluding Reserves) Ancillary Facilities 0.72% Debt Service & Ops 20.32% Districtwide Capital 18.08% Buses & Equipment 3.03% Charter Schools 1.32% Educational Tech 1.03% Portables 5.68% Comprehensive Needs 36.28% Safety Security Environ 1.66% Site Acquisition 1.45% Additional Schools 10.43% 34
Five Year New School Openings 2018 Audubon Park School 2019 37 M SW 4 2019 25 E SW 4 2019 49 E W 4 2020 20 E SW 4 2020 85 E W 4 2020 83 E SE 2 2020 118 E SW 5 35
Five Year New School Openings 2022 80 H SW 4 2022 30 E SE 3 2022 113 H W 4 36
FY2019 Comprehensive Projects Construction Southwest MS Lake George ES Magnolia School Sunrise ES Lake Gem ES Deerwood ES 37
FY2019 Comprehensive Projects Design Rolling Hills ES Winegard ES Pinar ES Meadow Woods MS Orange Technical College 4 Campuses Acceleration Academy West 38
Other FY19 Appropriations Digital curriculum expansion $40.2m School bus replacement $14.7m Capital Renewal $63.4m Portable moves and leasing $26.5m Charter school capital funding $6.4m District wide painting $5.8m Sunshades $4.5m 39
Debt Service Fund 40
Debt Service Fund Budget $222,036,313 Accumulates resources to pay long term debt Primary Revenue Sources State CO&DS Revenues Transfer from Capital Projects Fund 41
Special Revenue Fund 42
Special Revenue Budget $167,105,665 Initial budget includes Food Service Program only, a self supporting operation Funding is primarily from Federal reimbursement and USDA commodities, as well as local sales Meal prices will remain the same for 2018 19 Other Federal Grants will be amended into the budget as approved 43
Internal Service Fund 44
Internal Service Fund Total budget $336,015,721 Used to account for the district s Employee Benefit Trust Fund, Property Casualty Loss Fund, and Printing Services Fund 45
Internal Service Fund Employee Benefit Trust Fund Budget $286,437,834 Funded by Board contributions for employees and deductions for employees and dependents Medical claims payments and charges for services Plans continue to comply with Affordable Care Act requirements No increase in board contributions 46
Internal Service Fund Property Casualty Fund Budget $41,351,099 Property, Liability and Worker s Comp Claims Funded through charges to other budgets Printing Services Budget $8,226,787 Funded through charge backs to departments and schools 47
Remaining Actions Superintendent s comments Public comments Board discussion Adoption of total millage Adoption of 2018 19 Tentative Budget and establishment of date for final hearing 48