fy17 tentative budget community consolidated school ... · legal requirements for budget adoption...
TRANSCRIPT
FY17
Tentative Budget
Community Consolidated School District 65
Board Finance Committee Meeting
August 15, 2016
Presentation Overview
I. Legal Requirements for Budget Adoption
II. Overview of FY16 Actual Revenues and
Expenditures
III. Overview of FY17 Budget
IV. Financial Projections FY18-FY21
V. Budget Summary
Legal Requirements for Budget
Adoption
Section I
Legal Requirements for Budget
Adoption
• School Districts must adopt a Budget by the end of the
first quarter of the fiscal year
• Prior to adoption, a School Board must:
1. Place the Tentative Budget on Public Display for at
least 30 days
2. Schedule a date and time for a Public Hearing on the
Proposed Budget
3. Publish a “Notice of Public Hearing” in a newspaper
of general circulation within the District
4. Conduct a Public Hearing on the date and at the time
specified in the “Notice of Public Hearing”
Overview of FY16 Revenues
and Expenditures
Section II
FY16- Financial Highlights
101% of FY16 Revenues were collected 101% FY16 Expenditures were spent FY16 ended with a $1.1 million surplus (before
prepayments), $1.1 million surplus was budgeted
A portion of the surplus was used to prepay FY17 expenditures ($0.9 million) to help balance the FY17 budget
Approximately $0.2 million of the FY16 surplus was used to increase the size of the District’s fund balance to avoid a downgrade by bond rating agencies
FY16 Budget Vs. Actuals (Operating)
Revenues Expenditures
Budget $111,746,870 $110,633,852
Actuals $112,350,090 $112,147,345
$111,746,870
$110,633,852
$112,350,090 $112,147,345
$105,000,000
$106,000,000
$107,000,000
$108,000,000
$109,000,000
$110,000,000
$111,000,000
$112,000,000
$113,000,000
Revenues Expenditures
Overview of the FY17 Budget
Section III
FY17 Budget Highlights
FY17 Operating Budget is the District’s 15th consecutive
Balanced Budget, with revenues exceeding expenditures by
$79,119
Short term measures like prepayments, budget reductions and
efficiencies helped balance the budget
A version of the Zero-Based Budgeting (ZBB) methodology was
used to develop the budget
Spending is aligned with District priorities and strategic
initiatives, including K-3 literacy, expansion of ELL services,
recruitment initiatives and focused professional development
Budget supports Strategic Plan goals, maximizes student
learning and professional development
Overview of FY17 Revenues
Operating Revenues are projected to increase by 2%
Revenues are derived from the following sources: Local
Property Taxes : growth subject to the CPI factor
(2014 CPI factor was 0.8%)
Corporate Personal Property Replacement Tax (CPPRT) subject to state adjustments resulting from the state’s calculation error
Tuition, Fees, Earnings on Investments, Lunch revenue, TIF surplus payments
Flow Through State and Federal
State General State Aid funded at 100%
Categorical Aid (four payments are scheduled)
Federal
Federal Revenues are projected to increase by 2.5%
Transfers
Transfers of interest income
FY17 Operating Revenue Sources
$114.1 million
Property Taxes , $85,528,965, 75%
Corp. Prop. Replacement Tax, $2,030,745, 2%
Other Local Revenues, $4,955,129, 4%
Flow Through Revenues, $300,000, 0% General State Aid,
$4,717,021, 4%
State Aid Categorical, $7,884,629, 7%
Federal Aid, $8,669,155, 8%
Transfers, $16,132, 0%
History of the CPI Factor
3.4
1.6
2.4
1.9
3.3 3.4
2.5
4.1
0.1
2.7
1.5
3
1.7 1.5
0.8 0.7
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
PE
RC
EN
TA
GE
CALENDAR YEARS
CONSUMER PRICE INDEX (CPI) HISTORY
Comparison of FY17 Budget and FY16 Actuals
Operating Revenues
Property Taxes
Corp. Prop. Replacement
Tax
Other Local Revenues
Flow Through Revenues
General State Aid
State Aid Categorical
Federal Aid Transfers
FY16 ACTUALS $85,924,819 $2,030,745 $4,603,887 $0 $4,441,198 $6,980,482 $8,356,053 $12,906
FY17 BUDGET $85,528,965 $2,030,745 $4,955,129 $300,000 $4,717,021 $7,884,629 $8,669,155 $16,132
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
Overview of FY17 Expenditures
FY17 Operating Expenditures are increasing by 2% Costs are driven primarily by staffing costs, student
enrollment and services to students FY17 salaries are estimated, employee contracts and
agreements expired at the end of FY16 Salaries include additional 13.5 FTEs of instructional and
student support positions, due to higher student enrollment, as well as (partial) savings related to retirements
Student enrollment is projected to increase by 86 students to 7,457
Benefits include higher Early Retirement Option (ERO) costs of $0.8 million
Health insurance costs will be flat Costs of Special Education tuition continue to rise The net cost of Park Budget is projected to increase by
2%
FY17 Operating Expenditures
$114 million
Salaries, $82,308,385, 72%
Benefits, $14,100,320, 12%
Purchased Services, $9,550,656, 9%
Supplies, $4,601,708, 4%
Capital Outlay, $55,000, 0%
Other
Objects/Tuition/Transfers, $3,341,533, 3%
Termination Benefits, $65,054, 0%
Comparison of FY17 Budget and FY16 Actuals
Operating Expenditures
Salaries Benefits Purchased Services
Supplies Capital Outlay Other
Objects/Tuition/Transfers
Termination Benefits
FY16 ACTUALS $78,447,586 $14,997,135 $10,045,287 $4,508,988 $564,519 $3,520,670 $63,160
FY17 BUDGET $82,308,385 $14,100,320 $9,550,656 $4,601,708 $55,000 $3,341,533 $65,054
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
FY17 Expenditures by Function
0%
10%
20%
30%
40%
50%
60% 52%
19%
4% 4% 6%
4% 4% 3% 3%
FY17 Non-Personnel Budget Reductions &
Efficiencies
CATEGORY OF
REDUCTIONS
AMOUNT DESCRIPTION OF REDUCTIONS
REPAIRS & MAINTENANCE $50,000 DELAYED REPAIR & MAINTENANCE PROJECTS.
REPAIRS WILL BE PRIORITIZED
CENTRAL OFFICE NON-
PERSONNEL EXPENDITURES
$100,000 VARIOUS REDUCTIONS TO PURCHASED
SERVICES, SUPPLIES AND CAPITAL OUTLAY
PURCHASES
HEATING/GAS EXPENDITURES $260,000 LOWER UTILITY COSTS
CURRICULUM SUPPLIES $100,000 REDUCTIONS TO CURRICULUM SUPPLIES WILL
EXTEND THE TIMELINE NEEDED TO IMPLEMENT
NEW CURRICULUM IN THE FUTURE
CONSULTING SERVICES $50,000 FEWER PROJECTS WILL BE COMPLETED
FURNITURE $20,000 LESS SCHOOL FURNITURE WILL BE PURCHASED
TOTAL $580,000
Other Changes to the FY17 Budget
Salary costs reflect additional 13.5 FTEs added to the FY17 budget based on enrollment and programmatic needs:
6 teaching positions (Gen Ed and ELL)
2.5 FTE coach positions
1 psychologist
3 Teacher Assistants
2 FTE central office support positions
1 fewer maintenance position
Health Insurance savings
Reduction in Net cost of Park School due to additional efficiencies in comparison with the Draft Tentative budget
Financial Projections
FY18-FY21
Section IV
FISCAL YEAR ACTUALS
2015-16
TEN. BGDT
2016-17
PROJ’D
2017-18
PROJ’D
2018-19
PROJ’D
2019-20
PROJ’D
2020-21
TOTAL REVENUES
$112,350,088
114,101,775
114,900,518
116,989,554 122,046,409
122,938,208
TOTAL
EXPENDITURES
$112,147,345 $114,022,656 $119,406,052 $123,999,351 $128,681,438 $133,527,165
REVENUES-
EXPENDITURES
$202,743
$79,119
($4,505,534)
($7,009,797)
($6,635,030)
($10,588,957)
TECHNOLOGY
EXPENDITURES N/A N/A $1,900,000 $1,900,000 $1,900,000 $1,900,000
REVENUES-
EXPENDITURES W.
TECHNOLOGY $202,743 $79,119 ($6,405,534) ($8,909,797) ($8,535,030) ($12,488,957)
PENSION COST SHIFT
(VERY LIKELY in FY18) N/A $0 ($333,998) ($695,305) ($1,083,234) ($1,501,179)
OTHER STATE
FINANCIAL THREATS N/A $0 ($2,752,258) ($6,174,548) ($9,673,172) ($12,185,582)
REVENUES-EXP’S W. ALL THREATS $202,743 $79,119 ($9,491,789) ($15,779,650) ($19,291,436) ($26,175,718)
UPDATED Financial Projections
FY18-FY21
FY18-FY21 Financial Projections
Structural Deficit
Structural Deficit
Projections of D65 Operating Fund Balance
$22,318,193 $22,397,313
$17,891,779
$10,881,982
$4,246,952
($6,342,005) ($10,000,000)
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
FUND BALANCE AT 25%
Budget Summary
Section V
Budget Summary
FY17 Budget is Balanced, but the majority of its costs are estimated and subject to change
Nominal increases in future revenues
Very large operating deficits projected for FY18-FY21, BEFORE taking in account capital technology expenditures and state financial threats
District’s fund balance remains low in comparison with other school districts at 20%
Uncertainty at the state level continues; future changes to the state funding formula are likely
FISCAL YEAR ACTUALS
2015-16
TEN. BGDT
2016-17
PROJ’D
2017-18
PROJ’D
2018-19
PROJ’D
2019-20
PROJ’D
2020-21
TOTAL REVENUES
$112,350,088
114,101,775
114,900,518
116,989,554 122,046,409
122,938,208
TOTAL
EXPENDITURES
$112,147,345 $114,022,656 $119,406,052 $123,999,351 $128,681,438 $133,527,165
REVENUES-
EXPENDITURES
$202,743
$79,119
($4,505,534)
($7,009,797)
($6,635,030)
($10,588,957)
TECHNOLOGY
EXPENDITURES N/A N/A $1,900,000 $1,900,000 $1,900,000 $1,900,000
REVENUES-
EXPENDITURES W.
TECHNOLOGY $202,743 $79,119 ($6,405,534) ($8,909,797) ($8,535,030) ($12,488,957)
PENSION COST SHIFT
(VERY LIKELY in FY18) N/A $0 ($333,998) ($695,305) ($1,083,234) ($1,501,179)
OTHER STATE
FINANCIAL THREATS N/A $0 ($2,752,258) ($6,174,548) ($9,673,172) ($12,185,582)
REVENUES-EXP’S W. ALL THREATS $202,743 $79,119 ($9,491,789) ($15,779,650) ($19,291,436) ($26,175,718)
Budget Summary: UPDATED Financial
Projections FY18-FY21