Budget Presentation Final Review, Taxes, & 5-Year Projection March 27 th , 2017 6:00 P.M.
Budget PresentationFinal Review, Taxes, & 5-Year Projection
March 27th, 20176:00 P.M.
Meeting Agenda• 2017-18 Budget Status• Six Year Projections (to show w/o debt service)
• Uniform assumptions• 2% tax increase• 3% tax increase• 0% tax increase
• PASBO Conference Update• Berks Health Trust Update
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2017-18 Budget Summary
2017-18 Initial Budget
2017-18 Current Budget
Revenues 31,188,373 31,284,106
Expenditures 33,414,310 33,161,040
Revenues over Expenditures (2,225,937) (1,876,934)
Beginning Fund Balance (Projected) 8,549,271 8,890,478
Ending Fund Balance 6,323,334 7,013,5443
2017-18 Operating Budget Summary
2017-18 Budget
Revenues 31,284,106
Expenditures 31,675,440
Revenues over Expenditures (391,334)
• New Reductions/Additions• State revenue based on
Governor’s budget• $48k in basic ed. subsidy• $19k in special ed. subsidy
• Unlikely that transportation subsidy reduction will occur based on lack of interest from the legislature.
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Forecasted Revenue Assumptions
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• Local Revenue Increases (other than R/E taxes)• 2% - interims, per capita, EIT, IDEA, rentals, donations, tuitions• 1% - all others including transfer taxes, delinquents, interest, gate receipts
• State Revenue Increases• 1% - basic education, special education, transportation, property tax rebate• Social security and PSERS increased based on 50% of expenditure• All others flat funded
• Federal Revenue Increases• 1% for Title I and Title II • Could change based on federal budget (elimination of Title II)• All Access revenues removed
Forecasted Expenditure Assumptions
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• Salaries (aggregate average increases)• 3.5% - medical opt out (based on assumed increase in medical benefits)• 2.8% - professional staff, LT subs • 2.5% - admin, technical, clerical, maintenance, custodial• 1% - co-curricular, coaches• Includes reduction 1 of FTE per year based on enrollment trends
• Benefits (aggregate average increases)• 7% - medical and RX• 2% - life insurance, LTD, vision, dental, tuition reimbursement• Social security, PSERS, unemployment, and workers comp % of salaries
• Peak PSERS rate – 36.4% in 21-22• Average rate – 35.17%
Forecasted Expenditure Assumptions
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• Professional Services• 3% - regular and special education services• 2% - business services, event/game official services • 1% - other services
• Property Services• 2% - repair and maintenance services• 1% - lawn care, snow, trash, rentals
• Other Services• 3% - tuitions (charter, private)• 2% - transportation, insurance, advertising, BCTC
Forecasted Expenditure Assumptions
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• Supplies• 3% - gasoline and diesel• 2% - fuel oil• 1% - natural gas, electric• .5% - other supplies
• Equipment – no increase• Includes $200k/year for construction project contingency• Ongoing maintenance items included in property services
• Budgetary reserve – flat $200k per year• Dues, Fees, Debt Service
• 2% - dues/fees• Debt service based on existing payoff schedule for principal and interest
Specific Projection Assumptions
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• Three scenarios• 2% R/E tax increase, 3% increase, or
0% increase• Each scenario includes a .1% increase
for interims and assessment changes• Adjustments to fund balance and
potential construction projects after debt is retired for each scenario
• Attempt to budget $1.5mm for projects starting in 22-23
Construction Projects
Elementary Intermediate/Middle School High School
• Intercom, clock, and phone upgrade
• Rubber gym floor replacement
• Building envelope• Windows
• Building envelope• Replace hot water heaters• Intercom/Clock upgrade• Condensing boilers• Auditorium renovations• Stadium (lights and
replacement)• Scoreboards
• Chiller replacement• Air handler upgrades• Phone upgrade• Blacktop repair• Grease trap
replacement• Building envelope• Soccer field lights• Scoreboards
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Fund Balance
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• Use of fund balance questions• Amount to draw down from
committed fund balance for PSERS employer rate increases?
• Categories and amounts of assigned fund balance?
• Creation of a capital reserve fund to move money for future capital expenditures?
• Change in allowable fund balance amounts?
• Current 8% cap to unassigned• Possible caps to total fund balance?
Fund Balance Designation
Projected Y/E 16-17
Committed 1,663,000
Assigned 6,306,000
Unassigned 921,478
PASBO Conference Updates
• Property Tax Elimination• Current count at almost 30 no-votes • Other potential options
• Changes based on age and income level for seniors
• State Budget • Increases to basic and special ed.
appear solid• Transportation subsidy decreases less
than likely• Concerns from legislature• Method of changes to formula – 2 years in
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Berks Health Trust Update• Current not-to-exceed rate – 7.5%
• Budgeted 7%• Expected final rate in May
• RX Request for Proposal• Health trust awarded new Pharmacy Benefit Manager RFP to Express Scripts
(administered through Mercer)• Potential $3.9mm in savings to the trust
• Stop loss insurance renewal • Stop loss coverage insurance for high claims over $350k/year• 12 claims in the consortium• 67% increase in coverage with laser (removal) of 4 highest claimants• Approx. 230% increase without laser
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Upcoming Meetings
• Upcoming meetings• April 3, 2017 – Regular Board Meeting• May 1, 2017 – Regular Board Meeting
• Approval of the proposed final budget• Adjustments can still be made
• June 5, 2017 – Regular Board Meeting• Approval of the final budget
• June 19, 2017 – Regular Board Meeting
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