Wissahickon School District...2015/16 vs 2016/17 •Local Revenue –Overall increase of $3.0M (Real Estate Assessment Value Increase, Tax Increase, Transfer Tax & EIT) •State Revenue

Wissahickon School District

Budget Introduction 2018-2019

November 2017

Review of Audited Revenue & Expense Summary for 2016-17

plus Challenges/Opportunities for 2018-19

1

Wissahickon School District• What is happening tonight (11/27/17)

– Review of the financial results of 2016-17

– Initial Discussion of the 2018-19 Budget

• What Happens Next

– Prepare the individual pieces of the budget

– Have meetings about potential new initiatives

– Make assumptions about items we don’t know yet (PSERS, Medical, etc)

– Present a consolidated budget to the Board late Dec/Early Jan

2

Wissahickon School DistrictBudget Update

General Fund Revenue & Expenses

DESCRIPTION 2015-2016 2016-2017

Actual Audited Revenue Total 92,275,916 96,767,922

Actual Audited Expenses Total 92,829,265 96,138,971(Transferred $1.0M 15/16 & $2.1M 16/17 to

. Capital Projects)

(Decrease)/Increase in General Fund Balance

(553,349) 628,951

3

Wissahickon School DistrictRevenue Summary2015/16 vs 2016/17

• Local Revenue – Overall increase of $3.0M (Real Estate Assessment Value Increase, Tax Increase, Transfer Tax & EIT)

• State Revenue – Overall increase of $1.3M (Primarily for PSERS – (50% of expense) )

• Federal Revenue – Flat

4

Wissahickon School DistrictRevenue Summary

Local Revenue $77.4 mill 80.0%

State Revenue $18.7 mill 19.3%

Federal/OthRev. $ 0.5 mill 0.7%

5

6

51.08%

30.36%

3.49%

1.87% 7.09%

2.85% 0.78%

0.70%

1.77%

Wissahickon School District2017-2018 Budgeted Expenses

100-SALARIES 200-BENEFITS 300-PROF & TECH SERVICES

400-PROPERTY SERVICES 500-OTHER PURCHASE SERV 600-SUPPLIES

700-PROPERTY 800-OTHER OBJECTS 900-FINANCING USES

Wissahickon School District 2018-19 Challenges/Opportunities

1) Real Estate Tax Uncertainty

2) Revenue: Real Estate Assessment Appeals

3) Expenses: Public School Employees’ Retirement System (PSERS)

4) Expenses: Facilities Plans

5) Keeping an eye on Enrollment Projections

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Assessment Appeals

• On the downslope

• Many large properties settled within District reserve amounts

• Several very significant properties remain under appeal (for several years) (143 Million 2015, 100 Million 2016, 43 Million 2017)

• Foulkeways still a very large appeal.

8


9

269 269 269 269 269 268 275 279 279 280 286 286 289 290 290

1,270 1,295 1,306 1,323 1,339 1,354 1,364 1,368 1,361 1,360 1,366 1,371 1,373 1,371 1,360

1,946 1,962 1,982 2,006 2,004 2,012 2,010 1,991 1,985 1,986 1,990 2,009 2,025 2,024 2,020

3,485 3,527 3,557 3,598 3,613 3,635 3,649 3,638 3,625 3,626 3,641 3,6663,686

3,685

3,670

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Mill

ion

s

Wissahickon School District Historical Assessed Value

Ambler Lower Gwynedd Whitpain Total*Estimated Assessed Value - Board of Assessment Appeals


Expenses

• PSERSActual Actual Actual Actual Actual Budget Budget

12/13 13/14 14/15 15/16 16/17 17/18 18/19

PSERS

Rate 12.36% 16.93% 21.40% 25.84% 30.03% 32.57% 34.18%*

Amount $5.6M $7.8M $10.1M $12.4M $14.8M $16.1M $16.9M*

* Projected

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* Based on 2016-17 Salaries

7.13%

4.76% 4.78%5.64%

8.65%

12.36%

16.93%

21.40%

25.84%

30.03%

32.57% 34.18%

$0.00

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*

Wissahickon PSERS Expense

PSERS Expense


12

12.36

16.93

21.40

25.84

30.03

32.57 34.18

35.6236.13

36.56

33.75

33.84

33.94

34.18 34.30

32.10

32.20

32.31

32.43

32.58

32.72

32.8833.03

18.12

14.27

12.46

10.43

8.807.28

5.93

4.55

4.14

4.00

3.88

3.75

3.62

0

5

10

15

20

25

30

35

40

Pe

rce

nt

Projected PSERS Employer Contribution Rate Most recent projections as of 6/30/16 in GREEN - 4 years only. Projections as of 6/30/15 in BLUE - 5 years. Projections as of 6/30/14 in red - 30 yrs.

We are here 17 Years Later


Expenses• Facilities

Capital Projects Fund of $19M for Capital Preservation vs 5-Year Capital Maintenance Plan projected total of over $25M

Average building age over 50 years other than Lower Gwynedd

13

14

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.0045.95

40.30 39.25

37.86

35.88 34.31 33.03

32.39

32.35

31.77 30.64

30.14

29.46

28.93 28.14 28.07

26.24 24.67

24.35 21.40

19.44 19.43

Mill

age

Montgomery County School District Millage Rate Comparison 2017-2018

Note: Chart does not include Bryn Athyn School DIstrict.Source: http://www.education.pa.gov/Teachers%20-%20Administrators/School%20Finances/Finances/FinancialDataElements/Pages/default.aspx#tab-1District

15

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

4.63%

4.09%4.06%

3.40% 3.39%

3.26%3.19%

3.05% 3.00%

2.90% 2.87%

2.81%2.80%

2.61% 2.59%2.54%

2.52%

2.40% 2.33%2.22%

2.08%

1.87%

1.15%

Pe

rce

nta

ge In

cre

ase

Montgomery County School District Average Tax Increase Last Eleven Years

Note: Chart does not include Bryn Athyn School DistrictChart represents 2007-08 through 2017-2018* - Act 1 Index started in 2005-06 - average calculated on last eleven years

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0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.00% 0.00%

1.81%

0.00%

1.03%

0.00% 0.00% 0.00% 0.00%

1.87%

4.51%

3.46%

3.90%

3.40%

4.40%4.10%

2.90%

1.40%1.70% 1.70%

2.10%1.90%

2.40%2.50%

2.40%

Wissahickon School DistrictTax Increase Compared to Act 1 Index

Tax Increase

Act 1 Index

*To be determined

Wissahickon School District

Timeline

Act 1 amount for 2018-2019 is 2.4%.

January – decide whether to have a Preliminary Budget with exceptions (Special Education/PSERS) or stay within the 2.4% index.

Various meetings and discussions concluding withthe May/June adoption of the 2018-2019 Budget.

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Questions

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Documents

Wissahickon School District...2015/16 vs 2016/17 •Local Revenue –Overall increase of $3.0M (Real Estate Assessment Value Increase, Tax Increase, Transfer Tax & EIT) •State Revenue