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Township High School District 2112016-2017 Tentative Budget
PresentationAugust 18, 2016
2016-2017 Tentative Budget Parameters
0% Levy Increase from Prior Year Levy
FY17 Total Expenditures Less than FY16 Expenditure Budget
$2 Million Abatement of Debt Service Levy
No issuance of Phase II Life Safety Bonds ($10 million)
Committed Budget Reductions
Balanced Budget in Operating Funds
Driven by Strategic Priorities
Legal Requirements for Budget Adoption
School Districts must adopt a Budget by September 30, 2016 (105 ILCS 5/17-1)Prior to adoption, a School Board must:
1. Place the Tentative Budget on Public Display for at least 30 days
2. Publish a “Notice of Public Hearing” in a newspaper of general circulation within the District
3. Hold a public hearing4. Submit the budget electronically to ISBE within 30
days of adoption
EDUCATIONAL AND MUNICIPAL RETIREMENT/ SOCIAL SECURITY FUND
Educational Fund: Revenue Marginal increase in property tax
revenue
General State Aid not prorated for fist time since FY09
Categorical Aid increase due to special education student population changes and service allocation
Flat food service sales and tuition expected
CPPRT increase due to multi-year refund that was recorded in FY16
Other income increased due to expected revenue from sale of 2 building construction homes
Federal Aid decreased due to timing of payments in FY16
Budget % IncreaseREVENUE BY CATEGORY 2016-2017 (Decrease)
LOCAL PROPERTY TAXES 166,500,000 0.6%INTEREST ON INVESTMENTS 212,000 2.4%GENERAL STATE AID 6,660,600 5.5%CATEGORICAL STATE AID 5,808,300 3.7%FOOD SERVICE SALES 3,171,900 (0.2%)CORPORATE P.P.R. TAX 1,000,000 146.7%FEES & OTHER 3,575,550 7.1%TUITION 1,146,200 0.2%FEDERAL AID 6,591,400 (11.3%)
TOTAL REVENUE: 194,665,950 0.8%
FY17 Budget vs. FY16 Actuals
Educational Fund: Expenditures
Change in accounting method to reflect total salary and benefit costs
Purchased Services and Supplies account for additional grant funds, software licensing, and textbook replacements
Capital outlay decrease due to completion of software projects
Tuition increase due to accounting adjustment for NSSEO tuition costs
Non-Capitalized equipment decrease due to payment of copy equipment and iPads in FY16
Other income increased due to timing of expenditures with building construction homes
Budget % IncreaseEXPENDITURES BY CATEGORY 2016-2017 (Decrease)
SALARIES 134,428,390 10.6%EMPLOYEE BENEFITS 28,255,600 (21.8%)PURCHASED SERVICES 5,352,800 10.4%SUPPLIES & MATERIALS 7,150,840 7.0%CAPITAL OUTLAY 1,445,780 (37.2%)TUITION 7,415,000 11.0%NON-CAPITALIZED EQUIPMENT 2,631,200 (13.8%)OTHER 1,306,830 20.1%
TOTAL EXPENDITURES: 187,986,440 3.1%
FY17 Budget vs. FY16 Actuals
Educational Fund: Salaries & Benefits 9% TRS EMPLOYEE paid
benefit shifted from benefits to salaries in budget
This amount is the employee’s responsibility and is a deduction from their gross salary
There is no change to an employee’s gross salary or reporting of salary amounts as a result of this accounting change
TOTAL SALARY INCREASES ARE BUDGETED AT 2.3% AND TOTAL BENEFIT INCREASES ARE BUDGETED AT 4.8% FOR ALL EDUCATIONAL FUND EMPLOYEES
Budget % IncreaseEXPENDITURES BY CATEGORY 2016-2017 (Decrease)
SALARIES 134,428,390 10.6%EMPLOYEE BENEFITS 28,255,600 (21.8%)
Municipal Retirement/ Social Security Fund
Budget % IncreaseLOCAL REVENUE 2016-2017 (Decrease)
Local Property Taxes 9,560,000 0.4%Corporate Per. Prop. Repl. Tax 1,000,000 (16.7%)Interest on Investments 16,800 4.8%
TOTAL REVENUE: 10,576,800 (1.5%)
Budget % IncreaseEMPLOYER PENSION CONTRIB. 2016-2017 (Decrease)
Municipal Retirement (IMRF) 4,850,000 2.0%Social Security/Medicare 4,700,000 (3.9%)
TOTAL EXPENDITURES: 9,550,000 (1.0%)
OPERATING BUDGET BALANCE + (-) 1,026,800
SPECIAL ITEM - ADDT PMT TO IMFR (3,500,000)
FY17 Budget to FY16 Actual
FY17 Budget to FY16 Actual C.P.P.R.T revenue projected to
decrease following notice of overpayment in FY16
Decrease in benefits due to special education benefit allocation to Ed. Fund
Special payment of $3.5 million to IMRF in December 2016
Planned decrease in IMRF reserves
FY17 TENTATIVE BUDGETOverview of Revenues and Expenditures
2016-2017 Fiscal YearBeginning
Fund BalanceDirect
RevenueDirect
ExpendituresSurplus
(Deficit)Transfers In
(Out)
Additional IMRF
Payment
Projected Ending
Fund BalanceEducational 100,598,636 194,665,950 187,986,440 6,679,510 (12,937,000) 0 94,341,146Operations/Maintenance 15,968,753 31,025,800 28,247,550 2,778,250 0 18,747,003Debt Service 1,001,566 1,306,000 3,697,000 (2,391,000) 2,437,000 0 1,047,566Transportation 7,447,664 11,877,800 11,228,100 649,700 (1,500,000) 0 6,597,364Municipal Retirement/Social Security 8,010,975 10,576,800 9,550,000 1,026,800 0 (3,500,000) 5,537,775Capital Projects 1,620,724 10,000 13,785,000 (13,775,000) 14,000,000 0 1,845,724Working Cash 11,447,537 18,500 0 18,500 (5,000,000) 0 6,466,037Life Safety 116 5,000 1,900,000 (1,895,000) 3,000,000 0 1,105,116
146,095,971 249,485,850 256,394,090 (6,908,240) 0 (3,500,000) 135,687,731
2016-2017 Tentative Budget by Fund
Planned decrease of $10 million in
reserves
Revenue by Category
Local Property Tax Revenue is based off of the 2015 tax levy: 0% increase from prior year
Approximately 91% of all revenue from local sources
Revenue Summary- All Funds
Budget Actual % Increase
2016-2017 2015-2016 (Decrease)LOCAL PROPERTY TAXES 212,974,000 213,720,398 (0.3%)INTEREST ON INVESTMENT 313,900 305,563 2.7%GENERAL STATE AID 6,660,600 6,312,907 5.5%CATEGORICAL STATE AID 10,443,500 9,964,973 4.8%FOOD SERVICE SALES 3,171,900 3,178,099 (0.2%)CORPORATE P.P.R. TAX 3,000,000 2,605,366 15.1%FEES & OTHER 5,184,350 5,365,953 (3.4%)TUITION 1,146,200 1,143,651 0.2%FEDERAL AID 6,591,400 7,433,897 (11.3%)
249,485,850 250,030,807 (0.2%)
REVENUE BY CATEGORY
TOTAL DIRECT REVENUE:
FY17 Budget to FY16 Actual
Property tax revenue decrease due to prior year collections and debt service levy
Assumes 4 out of 5 State payments
C.P.P.R.T. revenue increases due to multi-year return of overpayment in FY16
Federal Aid decrease related to timing of payments in FY16
Expenditures by Category
Staffing levels to support enrollment and instructional programs
Continuation of multi-year capital improvement plan
73% of total expenditures are spent in the Educational Fund supporting the instructional program
Expenditure Summary-All Funds
Budget Actual % Increase
EXPENDITURES BY CATEGORY 2016-2017 2015-2016 (Decrease)SALARIES 151,435,040 138,139,551 9.6%EMPLOYEE BENEFITS 42,013,600 49,913,633 (15.8%)PURCHASED SERVICES 11,137,100 10,717,672 3.9%SUPPLIES & MATERIALS 9,110,840 8,875,957 2.6%UTILITIES 4,149,000 4,092,238 1.4%CAPITAL OUTLAY 22,752,480 28,679,325 (20.7%)DEBT SERVICE 3,697,000 7,847,434 (52.9%)TUITION 7,415,000 6,681,578 11.0%NON-CAPITALIZED EQUIPMENT 2,977,200 3,073,980 (3.1%)MISCELLANEOUS 1,706,830 1,472,331 15.9%TOTAL DIRECT EXPENDITURES: 256,394,090 259,493,699 (1.2%)
FY17 Budget to FY16 Actual
Salaries and benefits reflect reporting shift in accounting practice
Purchased services and supplies include additional grant fund expenditures, textbooks, software support, and Equal Opportunity Schools
Continuation of 5-year capital improvement plan
2016-2017 Facility Improvement ProjectsCapital Improvement Projects Total Budget Building
Pool Renovations 10,260,000 P,F,C,S,H
Media Center Renovations 1,425,000 P,F
Athletic Field Renovations 1,800,000 F,C,S
Bathroom Remodel 300,000 S
Total Capital Projects Expenditures: 13,785,000
Life Safety Projects Total Budget BuildingRoofs, Domestic Water Piping, Glass/Door Replacement
1,600,000 H
Roof, Domestic Water Piping 300,000 FTotal Life Safety Expenditures: 1,900,000
Interfund Transfers
Utilizes existing reserves to fund non-recurring improvement
projects without bonds
2016-2017 Tentative Budget SummaryFY17 Budget FY16 Actual FY16 Budget FY17 Budget to FY16
Actuals % Increase/ (Decrease)
Total Revenue $248,164,850 $247,740,711 239,346,500 0.2%
Total Expenditures $237,012,090 $232,543,419 238,941,500 1.9%
Excess of Revenue Over Expenditures
$11,152,760 $15,197,292 405,000
Other Sources/ Uses (Use of Reserves)
($22,937,000) ($4,590,600) (4,590,600)
OPERATING FUND SUMMARYs
FY17 Budget FY16 Actual FY16 Budget FY17 Budget to FY16 Actuals
% Increase/ (Decrease)
Total Revenue $249,485,850 $250,030,807 242,670,000 (0.2%)
Total Expenditures $256,394,090 $259,493,699 267,401,000 (1.2%)
Excess of Revenue Over Expenditures
$(6,908,240) (9,462,892) (24,731,000)
Additional IMRF Payment
($3,500,000) 0 0
ALL FUND SUMMARY
Tentative Budget Highlights
Academic Program Enhance-
ments
Balanced Budget
0% Levy Increase
Planned Use of
Existing Reserves
Expenditure Reduction
Budget Surplus Funds Future Capital Projects
IMRF Liability Payment
No Additional Debt
Continued Budget
Efficiencies
FIVE-YEAR FINANCIAL PROJECTIONS
Financial Projection AssumptionsAssumes CPI of 1.3% in 2018/2019 through 2020/2021Assumes no further bonded debtAssumes no pension cost shift, property tax freeze, or state
funding reform changesAssumes $10 million in capital projects each year for the
completion of projects identified for the next phase of improvements
Roof ReplacementsMechanical Equipment Replacement Restroom and Locker Room Renovations Turf Replacement Kitchen Renovations
Five-Year Financial Projections: OPERATING FUNDSCash Basis 2016‐2017 2017‐2018 2018‐2019 2019‐2020 2020‐2021
Budgeted % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐)BEGINNING FUND BALANCE 143,473,565$ 131,689,325$ 125,988,347$ 121,589,744$ 116,408,400$
TOTAL DIRECT REVENUE 248,164,850 0.2% 250,180,468 0.8% 253,946,937 1.5% 257,751,871 1.5% 261,670,987 1.5%
TOTAL DIRECT EXPENDITURES 237,012,090 1.9% 241,550,946 1.9% 245,915,040 1.8% 250,933,215 2.0% 256,572,532 2.2%
BUDGET SURPLUS/ (DEFICIT) 11,152,760 8,629,522 8,031,897 6,818,656 5,098,455
Transfer of Budget Surplus to Fund Future Capital Improvements, Life Safety Projects and IMRF Payment
Five-Year Financial Projection: ALL FUNDSCash Basis 2016‐2017 2017‐2018 2018‐2019 2019‐2020 2020‐2021
Budgeted % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐) Projected % +(‐)BEGINNING FUND BALANCE 146,095,971$ 135,687,731$ 126,258,731$ 121,855,731$ 116,674,731$
TOTAL DIRECT REVENUE 249,485,850 ‐0.2% 252,188,000 1.1% 253,943,000 0.7% 257,752,000 1.5% 261,671,000 1.5%
TOTAL DIRECT EXPENDITURES 256,394,090 ‐1.2% 259,617,000 1.3% 256,346,000 ‐1.3% 260,933,000 1.8% 267,773,000 2.6%
BUDGET SURPLUS/ (DEFICIT) (6,908,240) (7,429,000) (2,403,000) (3,181,000) (6,102,000)
TRANSFERS IN 20,330,500 18,430,500 18,000,000 12,500,000 10,000,000 TRANSFERS OUT (20,330,500) (18,430,500) (18,000,000) (12,500,000) (10,000,000)
SPECIAL PMT TO IMRF 3,500,000 2,000,000 2,000,000 2,000,000 2,000,000
ENDING FUND BALANCE 135,687,731$ 126,258,731$ 121,855,731$ 116,674,731$ 108,572,731$
Planned budget deficit as a result of the transfer of annual budget surpluses to fund future capital improvement projects
Operating Fund Balance % 52% 49% 47% 44% 40%of Next Yr. Expenditures
Next Steps
Approve the 2016-2017 tentative budget and place on file for public inspection for 30 days
Publish public hearing notice Conduct public hearing at the September 22, 2016
Board of Education meetingAdopt the final budget prior to September 30, 2016File the approved budget with ISBE within 30 days of
adoption