Budget Update and Planning March 5, 2018 Board of Education Meeting

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2018-2019 and Planning March 5, 2018 Board of Education Meeting General Support, Operations and Maintenance, Transportation, BOCES and Employee Benefits

Use of Debt Service Account OPTION 1 Actual 2017-18 Proposed 2018-19 Projected* 2019-20 Projected* 2020-21 Calculated Capital Exclusion $1,653,989 $1,555,357 $1,550,000 $1,550,000 Calculated Tax Levy Limit 6.07% 4.63% 3.69% 2.86% Use of Debt Service** $700,000 $375,000 $150,000 $0 Updated Capital Exclusion $953,989 $1,180,357 $1,400,000 $1,550,000 Updated Tax Levy Limit 2.83% 3.21% 3.15% 2.86% Impact of Project.79%.79%.73%.44% *Projected figures are based on the assumption that the state and local growth factors will remain the same as this year, 2% state and.42% local. However, the impact of the project will not change. **Final amounts approved by the Board of Education 3/5/2018 1

Use of Debt Service Account OPTION 2 Actual 2017-18 Proposed 2018-19 Projected* 2019-20 Projected* 2020-21 Projected* 2021-22 Calculated Capital Exclusion Calculated Tax Levy Limit $1,653,989 $1,555,357 $1,550,000 $1,550,000 $1,550,000 6.07% 4.63% 3.98% 3.32% 2.77% Use of Debt Service** $700,000 $450,000 $275,000 $100,000 $0 Updated Capital Exclusion $953,989 $1,105,357 $1,275,000 $1,450,000 $1,550,000 Updated Tax Levy Limit 2.83% 2.93% 2.97% 2.96% 2.77% Impact of Project.79%.51%.55%.54%.35% 3/5/2018 2

Major Factors Impacting Budget Expenses Health insurance increases Increase in New York State Teachers Retirement System Costs Increase in debt payments Contractual increases, MSSA, MSA and MAA contracts all negotiated for 2018-19. MTA expires 6/30/18, currently in negotiations. A few anticipated retirements from MSSA for 2018-19. Revenue Small increase in Foundation Aid/State Aid ($250,000) what will final budget look like? Increase in building aid helps off sets Debt Payments, along with Debt Service account and Capital Exclusion in the Tax Levy Calculation Growth factors in levy calculation (.0042,.02) Potential increase in rental (Center for Advanced Technology) 3/5/2018 3

2018-2019 Working Budget Status Working Budget $53,750,000 Working Revenue $52,850,000 Current GAP $900,000 3/5/2018 4

2017-18 Budget Status 2017-18 Budget Allocation of additional $350,000 to balance 2017-18 budget, total of $2 million in appropriated fund balance and reserves Additional unanticipated costs in 2017-18 Project at least a $750,000 depletion in Fund Balance at end of fiscal year 2018-19 GAP of $900,000 would be in addition to the projected $750,000 operating deficit from 2017-18. 3/5/2018 5

2018-2019 Working Budget The following slides outline the current working budget in these areas: General Support Operations & Maintenance Transportation BOCES Costs Employee Benefits 3/5/2018 6

General Support, Operations & Maintenance, Transportation & Benefits Summary of Cost Containment Initiatives RFPs for internal auditor, independent auditor, insurance and trash removal Participated in Ed Data cooperative purchasing initiative Annual bidding of supplies and services Participation in NYSMEC Consortium for electricity Locking in pricing for heating (natural gas) Solar initiative, completion now planned by December 2018 Participation in Capital Area Health Insurance Consortium (CASHIC) Participation in NYS Public Schools Statewide Workers Comp Trust Shared Transportation 3/5/2018 7

Operations and Maintenance Staffing 11 custodians 16.5 cleaners 1 Groundsman 1.5 Maintenance Mechanic Plow crew In-House Work Throughout the project have been able to save money by doing projects ourselves District Usage Buildings used not just by our own teams, clubs and PTO, but also for adult education, community groups, etc. 3/5/2018 8

A Day in Transportation Each day approximately 2,000 students are transported to and from school. These numbers include: 42 scheduled runs each day 27 Draper/High School runs 13 Bradt runs,13 Pinewood runs 6 in-district special needs runs, 7 out-of-district special needs runs 6 private/parochial runs 8 mid-day runs (CTE (Vo-Tech), Work-Based Learning, New Visions, Interns) 7 Draper/High School activity late runs, 2 two-hour detention runs 7 Pinewood late runs between Tuesdays and Thursdays 3/5/2018 9

Current Staffing - Driver Shortage Current Staffing 1 Full-time driver 40 Part-time drivers 5 Substitute drivers Driver Shortage 90% of Districts nationwide are experiencing some kind of shortage 37% would call the shortage severe Our mechanics have driven 63 separate runs this year due to shortage Driver Recruitment Bus in community with banner, encouraging people to apply Part of job fair in the fall Plan to do a Drive the Bus Day in the Spring to encourage people to explore it as an option 3/5/2018 10

Shared Transportation - Update Began shared transportation services in 2015-16 with Scotia-Glenville, Burnt Hills-Ballston Lake and Niskyuana as part of our efficiency plan In 2017-18: Other districts are transporting a total of 6 students on 4 different out-ofdistrict runs We are transporting a total of 17 students on 4 different runs Moving forward BOCES Grant: Have shared routing info with Transfinder Expand the number of shared runs Expand the number of districts Continue to explore sharing other supplies and services 3/5/2018 11

General Support Expenditures Acct Budget 2017-18 Proposed 2018-19 Incr./Decr. Board of Education A1010 $ 29,703 $ 31,882 $ 2,179 District Clerk A1040 $ 4,500 $ 4,500 $ - District Meeting A1060 $ 3,000 $ 3,000 $ - Chief School Administrator A1240 $ 238,421 $ 218,160 $ (20,261) Business Administration A1310 $ 513,711 $ 522,443 $ 8,732 Auditing A1320 $ 33,332 $ 33,420 $ 88 Treasurer A1325 $ 2,875 $ 2,875 $ - Tax Collector A1330 $ 6,500 $ 6,500 $ - Fiscal Agent Fees A1380 $ 3,000 $ 3,000 $ - Legal A1420 $ 50,000 $ 50,000 $ - Central Printing & Mailing A1670 $ 46,491 $ 47,850 $ 1,359 Central Data Processing A1680 $ 12,500 $ 12,500 $ - $ 944,033 $ 936,130 Subtotal Increase/Decrease $ (7,903) 3/5/2018 12

General Support Expenditures Acct Budget 2017-18 Proposed 2018-19 Incr./Decr. Unallocated Insurance A1910 $ 170,000 $ 185,000 $ 15,000 School Association Dues A1920 $ 2,500 $ 2,500 $ - Assessments School PropertyA1950 $ 20,000 $ 21,000 $ 1,000 Refund Real Property Taxes A1964 $ - $ - $ - Unclassified A1989 $ 75,000 $ 75,000 $ - Community Services Census A8070 $ 2,869 $ 2,407 $ (462) $ 270,369 $ 285,907 Subtotal Increase/Decrease $ 15,538 3/5/2018 13

Operations & Maintenance Proposed Expenditures Budget 2017-18 2018-19 Incr./Decr. Operations of Plant A1620 Salaries.160 $ 1,247,584 $ 1,237,250 $ (10,334) Equipment.200 $ 16,500 $ 11,500 $ (5,000) Testing and Inspection.400 $ 8,000 $ 12,000 $ 4,000 Fuel Oil.410 $ 230,000 $ 220,000 $ (10,000) Electricity.411 $ 500,000 $ 500,000 $ - Telephone.412 $ 40,000 $ 35,000 $ (5,000) Supplies.450 $ 116,000 $ 115,000 $ (1,000) Uniforms.456 $ 10,000 $ 11,000 $ 1,000 $ 2,168,084 $ 2,141,750 Subtotal Increase/Decrease $ (26,334) 3/5/2018 14

Operations & Maintenance Proposed Expenditures Budget 2017-18 2018-19 Incr./Decr. Maintenance of Plant A1621 Salaries.160 $ 222,211 $ 247,702 $ 25,491 Equipment.200 $ 20,000 $ 10,000 $ (10,000) Travel/Conference.406 $ 250 $ 250 $ - Maintenance Contracts.407 $ 150,000 $ 150,000 $ - Repairs.408 $ 55,000 $ 55,000 $ - Supplies.450 $ 90,000 $ 90,000 $ - $ 537,461 $ 552,952 Subtotal Increase/Decrease $ 15,491 3/5/2018 15

Pupil Transportation Proposed Expenditures Acct Budget 2017-18 2018-19 Incr./Decr. Pupil Transportation A5510 Salaries - Clerical.160 $ 72,001 $ 79,116 $ 7,115 Salaries - Other.170 $ 1,499,445 $ 1,517,279 $ 17,834 Salaries - Trips.180 $ 80,500 $ 80,500 $ - Equipment.200 $ 10,000 $ 10,000 $ - Other Expense.400 $ 70,500 $ 95,000 $ 24,500 Insurance.419 $ 95,000 $ 100,000 $ 5,000 Supplies.450 $ 122,500 $ 122,500 $ - Gasoline.451 $ 100,000 $ 90,000 $ (10,000) Diesel.459 $ 200,000 $ 170,000 $ (30,000) $ 2,249,946 $ 2,264,395 Subtotal Increase/Decrease $ 14,449 3/5/2018 16

Pupil Transportation Proposed Expenditures Acct Budget 2017-18 2018-19 Incr./Decr. Garage Building A5530 Other Expense.400 $ 3,250 $ 3,250 $ - Heat.170 $ 12,000 $ 12,000 $ - Electricity.180 $ 20,000 $ 25,000 $ 5,000 Telephone.200 $ 300 $ 300 $ - $ 35,550 $ 40,550 Subtotal Increase/Decrease $ 5,000 3/5/2018 17

Pupil Transportation 2018-19 PROPOSED Bus Purchase Requests 3 - Full size 72 passenger buses - Gasoline 3 33 passenger buses - Gasoline Proposition Amount = $470,000 Less State Share of Trans. Aid 69.7% = ($327,590) Est. Budget Impact District Share over 5 years = $142,410 (approx. $28,482 per year) No impact to 2018-19 budget - Debt/bond payments and state aid payments begin school year following a bus purchase, in this case 2019-20. Since the bond amount is similar to the bond amount expiring in 2019-20 the budgetary impact will be minimal, less than $1,000. 3/5/2018 18

BOCES BOCES was created by the NYS Legislature in 1948 to encourage school districts to pool and share resources Component school districts receive BOCES aid from the state to encourage them to share resources and to obtain economies of scale. The 2017-18 BOCES aid ratio is 64.6 percent. Actual aid for a particular Coser (co-operative service) can range from 30-65 percent. What is our overall BOCES aid percentage? Historically the actual aid we receive back on our expenses is approximately 52 percent. 3/6/2017 19

BOCES Expenses Expenditures Acct Budget 2017-18 Proposed 2018-19 Incr./Decr. Board of Education A1010 $ 2,000 $ 2,000 $ - Public Information A1480 $ 270,800 $ 246,500 $ (24,300) Operations of Plant A1620 $ 3,300 $ 3,300 $ - Central Data Processing A1680 $ 188,700 $ 260,000 $ 71,300 Admin and Capital A1981 $ 306,000 $ 306,000 $ - Supervision A2020 $ 29,478 $ 33,000 $ 3,522 Regional Planning A2060 $ 150,650 $ 171,000 $ 20,350 Inservice Education A2070 $ 35,000 $ 36,500 $ 1,500 Teaching - Reg. School A2110 $ 22,000 $ 30,000 $ 8,000 Prog - Students w/ Disabilites A2250 $ 975,000 $ 1,150,000 $ 175,000 Vocational Education A2280 $ 752,760 $ 806,000 $ 53,240 Summer School A2320 $ 95,000 $ 85,000 $ (10,000) Adult Education A2330 $ 10,000 $ 10,000 $ - Instructional Media A2610 $ 85,000 $ 85,000 $ - Computer Asst. Instruction A2630 $ 300,000 $ 260,000 $ (40,000) $ 3,225,688 $ 3,484,300 Subtotal Increase/Decrease $ 258,612 3/6/2017 20

Employee Benefits Health Insurance (Contractual) Life and Disability Insurance (Contractual) Teachers Retirement (TRS) (State Mandate) 10.63 percent (increased from 9.80 percent in 17-18) Employees Retirement (ERS) (State Mandate) 14.9 percent (reduced from 15.3 percent in 17-18) Workers Compensation (State Mandate) Unemployment (State Mandate) 3/5/2018 21

Employee Benefits Proposed ACCOUNT DESCRIPTION Budget 2017-18 2018-19 Incr./Decr. Employees Retirement A9010 $ 775,000 $ 775,000 $ - Teachers Retirement A9020 $ 2,100,000 $ 2,340,000 $ 240,000 Social Security A9030 $ 2,070,000 $ 2,130,000 $ 60,000 Workers Compensation A9040 $ 340,000 $ 385,000 $ 45,000 Life Insurance A9045 $ 70,000 $ 75,000 $ 5,000 Unemployment A9050 $ 100,000 $ 100,000 $ - Disability A9050 $ 10,000 $ 11,000 $ 1,000 Health Insurance A9060 $ 6,000,000 $ 6,900,000 $ 900,000 Employee Assistance & Othe A9089 $ 30,000 $ 25,000 $ (5,000) $ 11,495,000 $ 12,741,000 Subtotal Increase/Decrease $ 1,246,000 3/5/2018 22

Board of Education Vacancies Three (3) at large seats Three-year terms At least 25 signatures required on petition Petitions are currently available in District Office Petitions are due back to the District by Monday, April 16 at 5 p.m. 3/5/2018 23

Contingent Budget Rules If the proposed budget is not approved by the voters, the district may resubmit the original budget or submit a revised budget to the voters on the third Tuesday in June OR adopt a contingency budget that levies a tax no greater than that of the prior year (0% increase in the tax levy). If the resubmitted/revised budget proposal is NOT approved by the required margin, the Board MUST adopt a budget that levies a tax no greater than that of the prior year (0% increase in the tax levy) AND the budget would be subject to contingent budget requirements. Under a Contingency Budget, some items would need to be cut from the budget to meet the law with respect to definition of contingency appropriations. Cuts would be to student supplies, community use of buildings and grounds, certain equipment purchases and salary increases. 3/5/2018 24

Questions and Discussion 3/5/2018 25

Next Steps Next BOE Meeting: March 19, 2018, 6:30 p.m. Instruction, Revenue and Budget Recap April 16, 2018: Adoption of budget proposal May 15, 2018: Annual Budget Vote & BOE Election 3/6/2017 26