Transcript The Budget Under Act I - Exeter Township School District

The Budget Under Act 1 –
Amended by Act 25 of 2011
Preliminary General Fund Budget
Revenue
2012-2013
November 15, 2011
7/17/2015
1
Presidential Election Year Timeline
• Act 1 Budget Timeline geared to primary
election date
• Normal primary election date = third Tuesday
in May
• Presidential election year primary election
date = fourth Tuesday in April (4/24/12)
• 2012 primary election is 23 days earlier than
2011 – so all dates are accelerated about 3
weeks.
7/17/2015
2
Budget Timeline FY 2012-2013
Exeter Township School District
Timeline for events related to the FY 2012-2013 General Fund Budget Timeline PRELIMINARY &
PROPOSED FINAL
Date
Action
September 1, 2011
Index is published in PA Bulletin - 1.7
November 15, 2011
December 6, 2011
December 20, 2011
Board Reviews preliminary budget
Board Reviews preliminary budget
Board Reviews preliminary budget & Preliminary 2012-2013 budget available for
public display, or adopt a resolution indicating that taxes won't be raised above the
index.
January 17, 2012
School Board Adopts Preliminary Budget
February 9, 2012
Deadline to submit exception filings to PDE
March 20, 2012
Board Reviews Proposed Final Budget
April 17, 2012
Update to Proposed Final Budget
Department of Education notifies school districts of the amount of their allocation of
property tax reduction funding.
May 1, 2012
May 8, 2012
May 30, 2012
Update to Proposed Final Budget
Adopt FY 2012-13 proposed final budget and mail Certification of Use of PDE
2028 to PDE
School District Deadline to make 2012-2013 Proposed Final Budget available for
public inspection on PDE 2028
June 8, 2012
June 19, 2012
School District Deadline to offer Public Notice of it's intent to adopt the 2012-2013
Final Budget
Final Budget adoption; set millage
May 15, 2012
General Fund Revenue by Source
FY 08-09
FY 09-10
Actual
Local
Sources
State
Sources
Federal
Sources
Other
Sources
Total
Revenue
% Change
from PY
Actual
Actual
FY 11-12
FY 11-12
FY 12-13
Final Budget
Revised
Budget
Preliminary
Budget
FY 12-13 to FY 12-13
11-12
to 11-12
$ 42,444,873
$ 44,268,538
$
45,665,715 $ 44,878,887 $ 45,005,334 $ 44,724,655
$
(280,679)
-0.62%
$ 15,688,658
$ 14,914,669
$
16,028,523 $ 15,995,757 $ 16,100,207 $ 16,732,324
$
632,117
3.93%
$
755,630
$ 1,729,883
$
$
357,263
$
117,506
$
$ 61,030,596
$
$ 59,246,424
6.9%
3.0%
Excl Other
Financing
Sources
7/17/2015
FY 10-11
2,054,020 $
595,071 $
579,786 $
579,786
$
273,416 $
273,416 $
2,000
$
(271,416)
-99.27%
63,748,258 $ 61,743,131 $ 61,958,743 $ 62,038,765
$
80,022
0.13%
-
4.5%
$
-3.1%
-2.8%
0.13%
-
0.00%
0.13%
Before Real Estate
Tax Increase
4
FY 2011-2012 General Fund
Budget Revenue
Federal
Sources
$579,786
1%
Other
Sources
$273,416
0%
State
Sources
$16,100,207
26%
Federal
Sources
$579,786
1%
Other
Sources
$2,000 0%
State
Sources
$16,732,324
27%
Local
Sources
$45,005,334
73%
7/17/2015
FY 2012-2013 General Fund
Budget Revenue
Local
Sources
$44,724,655
72%
5
TAXES LEVIED 2011-2012
$475,000
$3,211,526
$181,000
$229,134
Real Estate (Millage 29.982)
Earned Income Tax (.5%)
Business Priviledge (.00075/.00050)
Transfer Tax (.5%)
Per Cap/LST ($10/10)
$38,457,582
Revenue from Local Sources
11-12
Revised Budget
12-13
Preliminary Budget
Change
% of Local
Real Estate (Millage 29.982)
$
38,457,582
$
38,090,337
$
(367,245)
85%
Earned Income Tax (.5%)
Business Privilege
(.00075/.00050)
Transfer Tax (.5%)
$
3,211,526
$
3,259,699
$
48,173
7%
$
$
475,000
181,000
$
$
475,000
200,000
$
$
19,000
1%
0.4%
Per Cap/LST ($10/10)
$
229,134
$
229,134
$
Total Taxes Levied
$
42,554,242
$
42,254,170
$
7/17/2015
-
0.5%
(300,072)
6
Tax Base Use 2012
2% 2%
15%
RESIDENTIAL VALUE
COMMERCIAL VALUE
INDUSTRIAL VALUE
FARMSTEAD
81%
7/17/2015
7
Exeter Township School District
Property Assessed Value
$1,450,000,000
$1,399,596,200
$1,401,439,300
$1,400,000,000
$1,390,246,600
$1,373,937,000
$1,366,991,700
$1,340,594,300
$1,350,000,000
$1,320,526,700
$1,297,807,500
$1,300,000,000
$1,255,245,100
$1,250,000,000
Property Assessed Value
$1,204,082,600
$1,200,000,000
$1,159,022,700
$1,150,000,000
$1,100,000,000
$1,050,000,000
$1,000,000,000
7/17/2015
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
8
Exeter Township School District
Real Estate Assessed Value - Percentage Increase per Yr.
(10 yr Trend)
5.00%
4.25%
4.00%
3.89%
% Increase in
Assessed Value
3.39%
3.00%
Linear (% Increase in
Assessed Value)
2.00%
2.00%
1.97%
1.75%
Exeter Commons & Super
Walmart full build-out
1.52%
1.00%
0.51%
0.00%
-0.67%
-1.00%
7/17/2015
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EXETER TOWNSHIP SCHOOL DISTRICT
PROPERTY TAX AMOUNT
Collection rate 96.00%
Total = July '12 Assessments ESTIMATE
$
Current millage
Tax Levy w/o homestead exclusion
29.982
$
Collection rate
$40,015,079
Senior Citizen Volunteer program cost
Revenue to Berks County Industrial Development
Authority
7/17/2015
41,682,374
96.00%
Real Estate Tax Number Budget
Real Estate Tax Number Budget before State
Property Tax Reduction
Estimate of State Property Tax Reduction
Real Estate Tax Net of Property Tax Reduction
1,390,246,600
$5,000
$281,000
$
$
$39,729,079
1,355,000
38,374,079
10
CURRENT REAL ESTATE TAX
40,000,000
39,000,000
$38,487,283
$38,665,577
$38,758,000
$38,374,079
38,000,000
37,000,000
36,000,000
35,000,000
$36,226,646
$35,220,326
34,000,000
33,000,000
7/17/2015
Actual
Actual
Actual
Final Budget Adopted
6/21/2011
Revised Budget
Preliminary Budget
08-09
09-10
10-11
11-12
11-12
12-13
11
Interim Revenue
900,000
800,000
$817,678
700,000
600,000
$550,598
500,000
$464,046
400,000
300,000
$296,475
200,000
100,000
$109,202
$107,000
$107,000
0
Actual 06-07
7/17/2015
Actual 07-08
Actual 08-09
Actual 09-10
Actual 10-11
Revised Budget 11-12 Preliminary Budget
12-13
12
Transfer Tax Revenue
900,000
800,000
700,000
$812,388
$688,187
600,000
$$$
$560,000
500,000
$469,467
400,000
$353,448
300,000
200,000
$181,000
$200,000
100,000
7/17/2015
13
$3,950,000
Earned Income Tax Revenue
$3,750,000
$3,502,010; Includes
Significant Prior Year
collections.
$3,550,000
$3,350,000
$3,328,596
$3,371,056
3,259,699
$3,211,526
$3,150,000
$3,108,726
$3,098,148
$2,950,000
$2,750,000
7/17/2015
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OTHER LOCAL REVENUE
11-12
12-13
Revised Budget
Preliminary Budget
Change
Delinquent
Earnings on
Investment
$
1,154,000
$
1,200,000
$
$
113,000
$
113,000
$
-
0.3%
Federal IDEIA - IU
$
738,797
$
738,797
$
-
2%
Other
Total Other Local
Revenue
$
445,295
$
418,688
$
(26,607)
1%
$
2,451,092
$
2,470,485
$
19,393
6%
7/17/2015
46,000
% of Local
3%
15
Investment Income
1,200,000.00
$1,032,736
1,000,000.00
$1,014,261
$$$
800,000.00
600,000.00
$585,564
400,000.00
200,000.00
$198,275
$112,920
$113,000
$113,000
0.00
7/17/2015
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Local Revenue Trends
– 11-12 Real Estate Tax Collection Rate is projected to be 96.5% versus
96% budgeted resulting in a $131,000 favorable budget variance net of
discount and penalty.
– 12-13 Real Estate Tax Collection Rate Assumption – 96%
– Due to the sluggish housing market, and property assessment
reductions, the real property assessment growth is estimated to
decrease by .67%
– Residential and Commercial assessment reductions effective for 1213 will likely result in $310,000 less in real estate tax revenue.
– Real Estate Tax revenue is projected to decrease by $385,000, budget
to budget before any tax increase.
– Most other local revenue sources continue to be constrained.
7/17/2015
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“Noteworthy” Other Local Revenue Sources 11-12
• Rentals – Clearwire Wireless Communication Site Lease
at Senior High - $18,500
• Stadium Rentals - $5,000
• Hess Demand Response Program - $12,600
• Antietam Student Athlete Fees - $14,600
• Extracurricular Activity Fee – Estimated- $40,000
• ECEF & APT Donations - $50,000
7/17/2015
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General Fund Revenue by Source
FY 08-09
FY 09-10
Actual
Local
Sources
State
Sources
Federal
Sources
Other
Sources
Total
Revenue
% Change
from PY
FY 10-11
Actual
Actual
FY 11-12
FY 11-12
FY 12-13
Final Budget
Revised
Budget
Preliminary
Budget
FY 11-12 to
10-11
$ 42,444,873
$ 44,268,538
$
45,665,715 $ 44,878,887 $ 45,005,334 $ 44,724,655 $
$ 15,688,658
$ 14,914,669
$
16,028,523 $ 15,995,757 $ 16,100,207 $ 16,732,324 $
$
755,630
$ 1,729,883
$
$
357,263
$
117,506
$
$ 61,030,596
$
$ 59,246,424
7/17/2015
6.9%
3.0%
2,054,020 $
-
579,786 $
273,416 $
273,416 $
(660,381) $
71,684
$
(280,679)
632,117
579,786 $ (1,474,234) $
(271,416)
63,748,258 $ 61,743,131 $ 61,958,743 $ 62,038,765 $ (1,789,515) $
80,022
-3.1%
-2.8%
2,000
0.13%
$
-
273,416 $
4.5%
$
595,071 $
FY 12-13 to
11-12
-2.81%
0.13%
19
State Sources of Revenue
11-12
Basic & Operating Subsidies
Subsidies for Non-Educational
Programs
Specific Educational Program
Subsidies
12-13
Change
$
8,018,244
$ 8,018,244
$
$
2,188,743
$ 2,213,629
$ 24,886
$
1,775,959
$ 1,775,959
$
Subsidies for State Paid Benefits $
2,581,718
$ 3,188,599
$ 606,881
Property Tax Relief
$
1,354,650
$ 1,355,000
$
350
Extra Grants
$
180,893
$
$
-
Total
$
16,100,207
7/17/2015
180,893
$ 16,732,324
-
-
$ 632,117
20
Exeter Township School District
Basic Ed Funding & Other State Grants
FY 2008-09
State Appropriation BEF $ 7,881,905
Federal
EdJobs
Appropriation $
Federal
ARRA Appropriation $
Total BEF $ 7,881,905
FY 2009-10
FY 2010-11
$ 7,353,296
$
7,073,431
$
$
579,705
$ 989,554
$ 8,342,850
$
$
978,928
8,632,064
-
FY 2011-12
$ 7,888,244
$
-
$
$ 7,888,244
Other State Funding:
EAP $
11,587
$
83,843
$
86,576
$
-
Dual Enrollment $
77,668
$
11,072
$
24,256
$
-
Accountability Block
Grant $
492,629
$
495,211
$
460,420
$
180,893
Reimb of Charter
School Exp $
103,855
$
117,963
$
103,670
$
-
$
685,739
$
708,089
$
674,922
$
180,893
$ 9,050,939
$
9,306,986
$ 8,069,137
$
$
256,047
$ (1,237,849)
Total BEF & Other
Funding $ 8,567,644
Change Yr to Yr.
483,295
BASIC INSTRUCTIONAL SUBSIDY
8,000,000.00
$7,881,905
7,800,000.00
$7,907,511
$7,888,244
$7,888,244
7,600,000.00
7,400,000.00
$7,353,296
$7,328,942
7,200,000.00
$7,073,431
7,000,000.00
$7,000,396
6,800,000.00
6,600,000.00
6,400,000.00
7/17/2015
Actual
Actual
Actual
Actual
Actual
Final Budget
Adopted
6/21/2011
Revised Budget
Preliminary
Budget
06-07
07-08
08-09
09-10
10-11
11-12
11-12
12-13
22
State Sources of Revenue
$9,000,000
$8,000,000
$7,000,000
$6,000,000
Axis Title
Basic & Operating Subsidies
$5,000,000
Subsidies for Non-Educational Programs
Specific Educational Program Subsidies
Subsidies for State Paid Benefits
$4,000,000
Property Tax Relief
Extra Grants
$3,000,000
$2,000,000
$1,000,000
$-
7/17/2015
08-09
09-10
10-11
11-12
12-13
23
State Sources of Revenue
• Basic Ed Subsidy – Governor is looking at a status quo for next year.
Legislators are saying that while they don’t expect the subsidy to
decrease, they see little or no increase. (2% at most = $157,765).
• Debt Service Reimbursement will be revised based on the debt service
savings realized from refunding.
• State reimbursement for employer paid social security will be revised
based on the budgeted wages for FY 2012-2013.
• State reimbursement for employer paid retirement contributions for
FY 2012-2013 increases by an estimated $570,000 due to the increase
in the contribution rate from 8.65% to 12.19%, or a 40% increase.
This line item is also subject to revision based on budgeted wages for
FY 2012-2013.
7/17/2015
24
Federal & Other Revenue
Federal Revenue
11-12
12-13
Change
Title I
$
308,640
$
308,640
$
-
Title II
$
71,146
$
71,146
$
-
Medical Assistance
$
200,000
$
200,000
$
-
$
579,786
$
579,786
$
-
Other Revenue
11-12
12-13
Change
Proceeds from Extended
Term Financing
$
271,416
$
-
$
Sale of Assets
$
2,000
$
2,000
$
$
273,416
$
2,000
$
7/17/2015
(271,416)
(271,416)
25
Act 1 Index
•
•
Each September, PDE publishes the index for use in the determination of allowable
tax rate increases in the following fiscal year. The base index is the average of the
percentage increase in the statewide average weekly wage, as determined by the
PA Department of Labor and Industry, for the preceding calendar year and the
percentage increase in the Employment Cost Index for Elementary and Secondary
Schools, as determined by the Bureau of Labor Statistics in the U.S. Department of
Labor, for the previous 12-month period ending June 30. For a school district with
a market value/personal income aid ratio (MV/PI AR) greater than 0.4000, its index
equals the base index multiplied by the sum of 0.75 and its MV/PI AR for the
current year.
Exeter Township School District Index for FY 12-13 = 2.2%
7/17/2015
26
Exeter Township School District
Calculation of Adjusted Index
For Use in FY 2012-2013 Budget
I. Act 1 Index based on SAWW and
ECI
1.7%
II. ETSD MV/PI AR Aide Ratio
0.5306
III. Calculation of Adjusted Index:
MV/PI AR
Adjustment
Factor for Increase
0.5306
0.75
1.2806
Adjusted Index (Act 1 Index (x) Adj Factor
2.2%
IV. Maximum Real Estate Millage Increase
FY 11-12 Mills
Adjusted Index 11-12
29.982
2.2%
Maximum Tax Rate FY 12-13 w/o referendum
exceptions
30.635
0.653
Mill Change
7/17/2015
Value of a Mill
$
1,350,000
Dollar Value of Real Estate Tax
Increase
$
881,164
27
Exeter Township School District Act 1 Index & Millage Increase Data
10.0%
9.9%
9.0%
8.0%
7.6%
7.0%
6.8%
6.0%
5.5%
5.2%
5.0%
4.8%
3.9%
4.0%
4.2%
4.1%
4.3%
3.4%
3.0%
3.0%
3.7%
3.5%
2.9%
2.2%
2.0%
1.8%
1.4%
1.2%
1.0%
FY06-07
7/17/2015
FY07-08
FY08-09
State Index
FY09-10
ETSD Index
FY10-11
Adopted Mill Increase
FY 11-12
1.7%
FY 12-13
28
Changes to Act 1 – Act 25 of 2011
• Eliminates all but three exceptions:
– Pension (calculation revised)
– Special Education (calculation revised)
– Debt (grandfathered, and electoral debt)
7/17/2015
29
Pension Exception
•
If the anticipated increase in the school district‘s share of payments to the Public
School Employees‘ Retirement System between 2011-2012 and 2012-2013 is greater
than the school district‘s index, the school district will be eligible for an exception
equal to the portion of the estimated payment increase that exceeds its index.
ETSD
Pension Exception
FY 2012-2013
FY
School
District
Index
2011-2012 BASE
SALARY FOR
Employer
REFERENDUM Retirement
EXCEPTION
Rate
SD Share of
Retirement
46.94%
SD Retirement
Cost
2011-2012
1.8% $
29,953,505
8.65%
4.06% $
1,216,205
2012-2013
2.2% $
29,953,505
12.19%
5.72% $
1,713,935 $
7/17/2015
Difference
Index % of
PY Share of
Est of
Payments Exception
to PSERS
Amount
497,730 $
26,757 $ 470,974
30
Debt Exception
•
•
•
•
Clarification of Tax Rate Rescission
Based on the original language contained in the Taxpayer Relief Act, PDE
previously interpreted ―final payment of interest and principal‖ – a phrase found
in section 333(f) in conjunction with approved debt exceptions – to require the
rescission of tax rates following either the last scheduled payment of a bond issue
or the refinancing of a bond issue.
Act 25 of 2011 added section 333(o) to clarify ―final payment of interest and
principal‖ for previously-approved Academic or Nonacademic school building
projects to not include a school district‘s payment of debt as a result of refunding
or refinancing the debt.
However, previously-approved Grandfathered Debt (indebtedness incurred prior
to the effective date) and Electoral Debt referendum exceptions must still be
rescinded according to the language in the Taxpayer Relief Act – following either
the last scheduled payment of a bond issue or the refinancing of a bond issue. If
indebtedness was refinanced, school districts may request approval of a
referendum exception for the refinanced indebtedness but only in the fiscal year
immediately following rescission of the originally-approved tax rate increase
related to the refinanced principal.
7/17/2015
31
Millage
Year to Year Increase in Millage
FY 2012-2013 FY 2012With
2013 - No
FY 2010-11 FY 2011-12 Refinancing Refinancing
29.624
29.982
1.2%
Rescinded Mills Due to Refinancing
Base Mills Subject to Index
(0.50)
29.481
0
29.982
30.129
A. Maximum Mills Based on Index
Index
Increase in Mills
Additional Revenue Generated
Effective Increase In Millage w/No Exceptions
B. Debt Exception - Recission
$
$
Millage Including Rescission Amount (A + B)
30.642
2.20%
0.147
199,038
0.49%
0.660
$ 890,465
2.20%
676,543
0.5011
30.631
2.16%
C. Retirement Exception
$
470,974
0.3489
$ 470,974
0.3489
D. Debt Exception - New Allowable
Note: Would not take more than "before refunding exception
amount"
$
998,007
$ 322,741
0.2391
0.2391
30.979
3.3%
31.219
30.990
3.4%
31.230
Millage w/ Rescission, Retirement ( A+B+C)
7/17/2015
2.20%
Millage w/ Rescission, Retirement, New Debt( A+B+C+D)
32
Budget Review Dates to remember
• December 6th & 20th – Expenditure and Fund Balance Review
• January 10, 2012 – Revisions
• January 17, 2012 – Adoption of Preliminary Budget for 2012-2013
7/17/2015
34