Overview & Assumptions

February 5, 2020

Budget AssumptionsExpenditures = Revenues

Expenditures Salaries/Contractual Projections Health Insurance Projections TRS & ERS Projections

Revenueso State Aido Federal Aido Grantso Property Taxeso Reserves

Expenditures Projections

Category Change Est. Net

Salaries/Contractual PRELIMINARY (averaged) +3.17% +$252,910

Salaries for Instructional Program needs new +$297,333

Health Insurance: Excellus (Increase) +17% +$284,977

Health Insurance: United Health Care Medicare Advantage (Decrease)

-42% -$365,953

TRS: Estimated rates increase btw. 9.25% - 10.25% +0.89% +$47,158

ERS: Estimated rates by Tier of 9.7% to 16.2% none +$7,340

GST BOCES – PRELIMINARY based on a 1.9% increase • BOCES Director meeting scheduled for early March to

provide initial budget information. +1.9%GST BOCES Total Cost

$5,613,007

Maintenance

Capital Outlay Project: $225,000

Historically @ $100,000

Why the difference?

Identified need to address the TAE front entryway:

Structural Concern

Security

Functionality/efficiency

Impact on 20-21 Budget

Review existing Building Condition Survey to prioritize need.

Maintenance

Capital Outlay Project $225,000 - Potential scope of work to be completed at TAE.

Renovation of Main Entrance doors

Sump Pump with warning sensor in Boiler Room

Updates to Lighting Switches in Gym

Window Seal Upgrades

Upgrade paging wire and speakers

Community Room audio /visual upgrades

All work dependent upon cost constraints.

Expenditure Impact of Proposed Budget

19-20 Adopted Budget $22,797,180

20-21 Preliminary Proposed Budget $23,497,858

20-21 Projected Expenditure Increase $ 700,645

reflects a 3.07% increase

Sources of Revenue:State Aid

Governor’s Proposal

Foundation Aid – Increase of $93,747 or 1.23%

Executive Budget Proposal includes consolidating 10 expense based aids into Foundation Aid.

Additionally this is the first year of Community Schools Set-aside allocation.

Expense Based Aid – Building, Transportation, & Public Excess Cost High Cost Aid. Revenue is based on projection of current year expenditures and are higher than can be expected to be received.

Governor’s Proposed Budget

Governor’s Proposed Budget

The Impact of the Lack of Fully Funding Foundation Aid Formulas

Sources of Revenue Reserves

Current BalancesRetirement Contributions Reserve $ 1,169,864

TRS Contribution Reserve $ 125,000

Unemployment $ 176,307

Workers Compensation $ 696,466

Employee Benefit Accrued Liability $ 259,068

Tax Certiorari $ 7,249

Capital $ 901,374

Repair Reserve $ 205,769

The establishment and funding of reserves is an important consideration in the maintenance of a sound financial plan for any school district.

Sources of Revenue: Property Taxes

2nd largest source of Revenue

Historical Impact on Revenues2011-12 $ 6,736,1382012-13 $ 6,997,7152013-14 $ 7,375,5922014015 $ 7,440,6662015-16 $ 7,433,5942016-17 $ 7,446,3832017-18 $ 7,631,7982018-19 $ 7,811,9972019-20 $ 7,969,265

Range 0% 7,969,265 to Projected Tax Cap 1.96% = $8,125,569

Preliminary Tax Cap CalculationsTax Levy Cap - Calculations and Totals

Tax Levy Limit (Cap) Before Exclusions

Tax Levy Fiscal Year Ending (FYE) 06/30/2020 $7,969,265

Total Tax Cap Reserve Amount from FYE 06/30/2020 $0

Tax Base Growth Factor** 1.0059

PILOTS receivable FYE 06/30/2020 $180,181

Capital Tax Levy for FYE 06/30/2020457,362

Allowable levy growth factor*** 1.081

PILOTS receivable FYE 06/30/2021 $82,321

Available Carryover from FYE 06/30/2020 $0

Total Levy Limit Before Exclusions $7,796,859

** As determined by the NYS Office of Real Property Tax Services (ORPTS)

*** As determined by the NYS Office of the State Comptroller

Preliminary Tax Cap Calculations Cont’d

ExclusionsTax levy necessary for expenditures resulting from tort orders/judgments over 5% FYE 06/30/2020 tax levy

$0

Capital Tax Levy for FYE 06/30/2021 $328,710

Tax levy necessary for pension contribution expenditures casued by growth in the system average actuarial contribution rate (ERS) or normal contribution rate (TRS) in excess of 2 percentage points:

ERS $ 0

TRS $ 0

Total Exclusions $ 328,710 Tax Levy Limit, Plus Exclusions $ 8,125,569

Tax Levy Limit, Plus Exclusions % 1.96%

Proposed Levy for FYE 06/30/2021 $8,125,569

Difference Between Tax Levy Limit Plus Exclusions and Proposed Levy

($0)

Do you plan to override the cap in 2020? Yes No

Projected Expenditure to Revenue Gap

Proposed Budget Projections $23,497,825

Projected Revenues $23,090,824

based on 1.96% Cap

Current Gap $ 407,001

What is at stake?

18

If the resubmitted or revised budget is defeated the BOE must adopt a contingent budget consisting of “teachers” salaries & ordinary contingent expenses, subject to a cap on the administrative portion of

the budget, with no increase in tax levy over the prior year.

The Gap increases to $563,305

If the Voters reject the District’s proposed budget the Board of Education may do one of the following:

Resubmit the defeated budget

Submit a revised budget

Adopt a contingent budget

Questions?

Next Steps

March 4th

Updated Projections

Expenditure Adjustments

Prioritized Wants & Needs Lists

March 25th

Final Budget Adoption if Completed