PublicHearingFY2020TentativeBudgetDale C. Kelly, CPAChief Financial Officer July 30, 2019

Agenda

• Presentation of proposed millage• Presentation of proposed budget• Superintendent’s comments• Public comments• Board discussion• Adoption of total millage• Adoption of 2019‐20 Tentative Budget and establishment of date for final hearing

2

Commercial BuildingsResidential

PropertyTaxes

3

• 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

PropertyTaxes

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EDR EstimatesOrange Taxable Values

as of March 2019

5

 ‐

 50.0

 100.0

 150.0

 200.0

 250.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

In Billions

Description 2018‐19 2019‐20 Change

Required Local Effort 4.051  3.861  (0.190)

Discretionary 0.748  0.748  ‐

Additional Voted Millage 1.000  1.000  ‐

Subtotal Operating 5.799  5.609  (0.190)

Capital Projects 1.500  1.500  ‐

Total Millage 7.299  7.109  (0.190)

Millage Rate Comparison

6

7

Reduced 1.549

Disc. Mill0.7480.7480.7480.7480.7480.7480.7480.7480.7480.748Disc Mill

0.748

Cap. Millage1.5001.5001.5001.5001.5001.5001.5001.5001.5001.500Cap Millage

1.500

RLE3.861

4.0514.2224.5634.9705.2265.1145.2305.2975.396

5.425RequiredLocalEffort

Critical, 0.250

Sp. Millage1.000

1.0001.0001.000

1.0001.0001.0001.000Sp. Millage1.000

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

FY20FY19FY18FY17FY16FY15FY14FY13FY12FY11FY10Disc Mill Cap Millage RLE Critical Sp. Millage

Millage Rates

Reduced 1.564

Rolled‐BackRate

• 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‐BackRate

• Required Local Effort – 1.57% over the rolled‐back rate

• Total Millage – 3.79% over the rolled‐back rate

9

Homeowner Impact

10

with Save Our Homes

Home Just Value Prior Year $  202,625 

Less Homestead Exemption $    25,000 

Taxable Value Prior Year $  177,625 

Taxes Paid Prior Year $  1,296 

Home Just Value Current Year $  206,000 

Less Homestead Exemption $    25,000 

Taxable Value Current Year $  181,000 

Taxes Proposed Current Year $  1,287 

Net Change in Taxes $       (9)

Commercial Owner Impact

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Property Just Value Prior Year $      938,350 

Less Homestead Exemption $                 ‐Taxable Value Prior Year $      938,350 Taxes Paid Prior Year $    6,849 

Property Just Value Current Year $   1,000,000 Less Homestead Exemption $                 ‐

Taxable Value Current Year $   1,000,000 Taxes Proposed Current Year $    7,109 

Net Change in Taxes $        260 

12

ProposedAnnualBudget2019‐20

TimelineofBudgetProcess

• Community input and legislative priorities – Fall• Governor’s Budget – January• Final EDR Forecast – March• Legislative Session – March through May• Budget Committee meetings – March through May• Initial school allocations – March• Board work sessions – April and June• Proposed millage and budget advertised – July 28• Public hearing on Tentative Budget– July 30• Public hearing on Adopted Budget– September 10

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BudgetSummary

• 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

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Summary of Five Funds

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Fund 2018‐19 2019‐20 Difference

General 2,150,793,740  2,228,016,437  77,222,697 

Debt Service 222,532,629  224,838,528  2,305,899 

Capital Projects* 1,858,305,493  1,402,416,774  (455,888,719)

Special Revenue** 169,957,186  174,727,229  4,770,043 

Internal Service 336,472,194  344,450,772  7,978,578 

Totals 4,738,061,242  4,374,449,740  (363,611,502)

*Includes carry‐over projects for 2018‐19 only.                                                                                 

**Food Service only, other grant awards to be amended into budget as approved.                                               

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GeneralFund

GeneralFund

• Budget – $2,228,016,437• 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

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18

EstimatedRevenue

FTE Actual and Forecast 

19

150,000

160,000

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

07‐08 08‐09 09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20

Total State Appropriations (All Funds)

20

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Education Enhance. and Ed.Other

Human Services Criminal Justice andCorrections

NaturalResources/Environ./Growth

Mgt./Transp.

General Government Judicial Branch

2016‐17

2017‐18

2018‐19

2019‐20

Education Appropriations (All Funds)

21

0%

10%

20%

30%

40%

50%

60%

70%

Early Learning Public Schools Community Colleges Universities Other

2016‐17

2017‐18

2018‐19

2019‐20

Budgeted Funding Per StudentSecond Calculation FEFPWith CPI Comparison

7,309.24 

6,988.29 

6,530.42 

6,447.36 

6,228.17 

6,346.25 

6,735.24 

6,883.27 

7,057.07 7,120.32  7,231.06 

7,343.01 

7,632.22 

360.11 

339.16 

123.53 

210.64 

468.97 452.48 

466.16 

491.16 

551.32 585.43 

630.39 658.98 

711.84 

 6,000.00

 6,500.00

 7,000.00

 7,500.00

 8,000.00

 8,500.00

 9,000.00

 9,500.00

July 2007 July 2008 July 2009 July 2010 July 2011 July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 2018 July 2019

State Funding Federal Stimulus Critical Needs Millage Edu Jobs One Mill CPI

$639Less

22

Percentage of State General Revenue Going to Education

40

45

50

55

60

65

70

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 17 18 19 20

Perc

ent

Fiscal Year End 23

Percentage of General Revenue to Public Schools

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72.6 71.7 71.8 71.469.2 70.3 70.8

50

55

60

65

70

75

80

FY14 FY15 FY16 FY17 FY18 FY19 FY20

Percen

t

Fiscal Year End

Lottery Appropriations for FloridaReflects How Lottery Funds Were Dispersed to Education

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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 20

Public Schools Classrooms First & CSR Construction Community Colleges State Universities State Other25

Estimated Revenues by Source

26

Federal ‐ 0.61%

State ‐ 51.63%

Local ‐ 47.76%

Appropriations

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Priorities

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• Compensation to employees• Increased mental health services• Increased safety at schools• Instructional support for Teaching and Learning• Preserving academic programs• Retain highly qualified teachers• Protect arts, athletics, and student activities

OtherBudgetItems

• Health insurance‐increase of 10%• Florida Retirement System rate increases• Professional development days

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General FundBudgeted Appropriations by Function

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Instr. & Instr Support SchoolAdministration

Plant Operation &Maint.

Transportation General Support General Admin. &Board

Community & DebtServ.

FY16-17

FY17-18

FY18-19

FY19-20

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CapitalProjectsFund

31

CapitalProjectsFund

• Budget – $1,402,416,774• 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

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Budgeted Capital Revenues by Source

 ‐

 100.00

 200.00

 300.00

 400.00

 500.00

 600.00

 700.00

2020 2021 2022 2023 2024

In M

illions

Fiscal Year

Other State

PECO

Other Local

Sales Taxes

Impact Fees

Property Taxes

33

Capital Projects Use of Funds(Excluding Reserves)

Districtwide Capital 25.96%

Comprehensive Needs 9.64%

Additional Schools 37.04%

Site Acquisition 1.03%

Safety Security Environ 1.15%

Portables 3.04%

Educational Tech 6.70%

Charter Schools  1.05%

Buses & Equipment1.96%

Ancillary Facilities 0.08%

Debt Service & Ops 12.35%

34

TentativeCapitalPlan

• Continues with project priorities as previously presented

• Includes funding for ballfield lighting at high schools• Includes the continuation of the refurbishing all the track and field components at our high schools

• Includes new capacity projects based on recommendations from Advance Planning

• Includes continuation of safety projects

35

Five‐YearNewSchoolOpenings

• 2019  Castleview ES• 2019  Horizon West MS• 2019  Water Spring ES• 2020  20‐E‐SW‐4• 2020  85‐E‐W‐4• 2020  83‐E‐SE‐3

36

Five‐YearNewSchoolOpenings

• 2021  80‐H‐SW‐4• 2021  113‐H‐W‐4• 2021  118‐E‐SW‐5• 2021  43‐E‐SE‐2• 2022  89‐E‐W‐4• 2022  30‐E‐SE‐3• 2022  90‐K8‐N‐7• 2022  132‐M‐W‐4

37

Five‐YearNewSchoolOpenings

• 2023  65‐M‐W‐4• 2023  68‐M‐SE‐2

38

FY2020ComprehensiveProjects‐Construction

• Meadow Woods MS• Acceleration West

39

FY2020ComprehensiveProjects‐Design

• Orange Technical College – Orlando• Orange Technical College – Winter Park

40

OtherFY20Appropriations

• Digital curriculum expansion‐ $46.5m• School bus replacement‐ $15.2m• Portable moves and leasing‐ $23.6m• Charter school capital funding‐ $8.2m• District‐wide painting‐ $5.8m

41

DebtServiceFund

42

DebtServiceFund

• Budget ‐ $224,838,528• Accumulates resources to pay long‐term debt• Primary Revenue Sources

‐State CO&DS Revenues‐Transfer from Capital Projects Fund

43

SpecialRevenueFund

44

SpecialRevenue

• Budget – $174,727,229• 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 2019‐20

Other Federal Grants will be amended into the budget as approved

45

InternalServiceFund

46

InternalServiceFund

• Total budget – $344,450,772• Used to account for the district’s Employee Benefit Trust Fund, Property Casualty Loss Fund, and Printing Services Fund

47

InternalServiceFund

Employee Benefit Trust Fund• Budget – $296,350,061• 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

• Increase of 10% in board contributions

48

InternalServiceFund

Property Casualty Fund• Budget – $40,900,884 • Property, Liability and Worker’s Comp Claims• Funded through charges to other budgets

Printing Services• Budget – $7,199,827• Funded through charge‐backs to departments and schools

49

RemainingActions

• Superintendent’s comments• Public comments• Board discussion• Adoption of total millage• Adoption of 2019‐20 Tentative Budget and establishment of date for final hearing 

50