POTTSTOWN SCHOOL DISTRICTBUDGET WORKSHOP
2006-07 SCHOOL DISTRICT BUDGET
Ladies and Gentlemen,
The proposed budget for the 2006-07 fiscal year is being presented for your consideration Thursday, May 4, 2006. This will be an informational meeting on the budget and no vote will be taken.
The total of the 2006-07 proposed budget is $43,665,515. This is an increase of $1,805,335 or 4.31% over the estimated expenditures for the 2005-06 school year. This figure includes $400,000 for budgetary reserve. Actual expenditure increase without the budgetary reserve is $1,405,335 or 3.4% increase.
The proposed budget includes an increase in real estate millage of 1.4918 mills, from 28.1468 mills to 29.6386 mills. This represents an increase of 5.3% in real estate millage.
The district's adjusted index to increase real estate millage for 2006-07 is 5.3%. This proposed budget is within the index for the fourth straight year.
The increase in revenue from real estate taxes is $1,191,697 since each mill represents $798,832. The average residential property in Pottstown is assessed at $74,359 thus an increase of 1.4918 mills in real estate taxes amounts to $110.93 per year or $9.24 per month to the average residential property owner.
PROJECTED 2006-07 ALLOWABLEMILLAGE AND EXPENDITURE INCREASES
Pottstown School District Adjusted Index 5.3%
2005-06 Budgeted Expenditures $41,476,706
2006-07 Projected Revenue Increase $ 793,028
Estimated Dollar Value of 1 Mill = $798,832Current Millage Rate 28.1468Adjusted Index .053 Allowable Millage Increase 1.4918 Mills
Dollar Value Millage Increase $ 1,191,697
Estimated Dollar Value – Expenditure Growth $ 1,984,725
Estimated Allowable % Expenditure Growth($1,984,725 ÷ 41,476,706) 4.8%
Consumer Price Index – February 2006 4.4%
Average Tax Increase for Taxpayer with HomeValued at $74,359 x 1.4918 Mills = $ 110.93
FINANCIAL SUMMARY
2002-03 2003-04 2004-05 2005-06 2005-06 2006-07Actual Actual Actual Budget Estimate Budget
Revenue from Local Sources $23,820,670.74 $25,453,891.99 $ 26,484,675 $ 26,958,341 $27,301,598 $28,501,33467% 67.7% 66.1% 66% 66.3% 66.0%
Revenue from State Sources 10,758,429.13 11,020,163.04 12,054,573 12,287,338 12,254,861 13,106,06130.3% 29.3% 30.1% 30.1% 29.8% 30.4%
Revenue from Federal Sources 945,609.38 1,117,743.51 1,212,145 1,606,915 1,624,078 1,557,8672.7% 3.0% 3.0% 3.9% 3.9% 3.6%
Revenue from Other Finance Sources
Proceeds Extended Term Financing 325,000.8%
Total Receipts $35,524,709.25 $37,591,798.54 $ 40,076,393 $ 40,852,594 $41,180,537 $43,165,262
Beginning Fund Balance 3,494,733.36 3,170,420.79 3,287,356 624,112 3,957,487 500,253
Total Funds Available $39,019,442.61 $40,762,219.33 $ 43,363,749 $ 41,476,706 $45,138,024 $43,665,515
Less Disbursements 35,849,021.82 37,474,862.93 39,406,262 41,476,706 41,860,180 43,665,515
Balance $ 3,170,420.79 $ 3,287,356.40 $ 3,957,487 $ -0- $ 3,277,844 $ -0-
NOTE: 1 Mill = $798,832
FINANCIAL SUMMARY
Budget Estimate Increase2006-07 2005-06 (Decrease)
Local Revenue $28,501,334 $27,301,598 $ 1,199,736
State Revenue 13,106,061 12,254,861 851,200
Federal Revenue 1,557,867 1,624,078 ( 66,211)
Estimated Revenue $43,165,262 $41,180,537 $ 1,984,725
LESS:Estimated Expenditures 43,665,515 41,860,180 1,805,335
Estimated FundsRequired ($ 500,253) ($ 679,643) $ 179,390
Fund Balance 500,253 679,643 ( 179,390)
Balance $ -0- $ -0- $ -0-
1 Mill = $798,832
REVENUE HIGHLIGHTS
2006-07 2005-06 IncreaseBudget Estimate (Decrease)
Local Revenue:
Real Estate Taxes $23,676,266 $22,445,004 $1,231,262
Interim Real Estate Taxes 40,000 148,500 ( 108,500)
Earned Income Tax 1,565,500 1,550,000 15,500
Real Estate Transfer Tax 490,000 475,000 15,000
Delinquent Real Estate Tax 850,000 900,000 ( 50,000)
Interest Income 560,000 530,000 30,000
Tuition 105,000 36,393 68,607
Total Local Revenue Highlights $27,286,766 $26,084,897 $1,201,869
REVENUE HIGHLIGHTS
2006-07 2005-06 IncreaseBudget Estimate (Decrease)
State Revenue:
Basic Education Subsidy $ 7,557,060 $ 7,111,149 $445,911
Charter School Reimbursement 258,516 240,000 18,516
Special Education Subsidy 1,782,264 1,737,690 44,574
Accountability Block Grant 537,124 416,858 120,266
State Grants 60,400 75,641 ( 15,241)
State Share Social Security 777,340 741,690 35,650
State Share Retirement 671,124 472,013 199,111
Total State Revenue Highlights $11,643,828 $10,795,041 $848,878
REVENUE HIGHLIGHTS
2006-07 2005-06 IncreaseBudget Estimate (Decrease)
Federal Revenue:
Title I, IIA, V $ 795,342 $ 773,125 $ 22,217
CSR Grant 13,564 42,968 ( 29,404)
21st Century 487,139 559,926 ( 72,787)
Access Grant 124,004 112,929 11,075
Total Federal Revenue Highlights $ 1,420,049 $ 1,488,948 ($ 68,899)
Total Revenue Highlights $1,981,757
TOTAL ALL REVENUES $43,165,262 $41,180,537 $1,984,725
REAL ESTATE TAXES2001-2002 2002-03 2003-04 2004-05 2005-06 2006-07Actual Actual Actual Actual Estimate Budget
Assessed Valuation $811,270,791 $810,501,750 $806,218,259 $834,552,793 $830,652,577 $833,587,557
Tax Levy in Mills 23.8749 25.9101 26.3896 27.0565 28.1468 29.6386
Tax Levy 19,369,009 21,000,181 21,275,777 22,580,079 23,380,212 24,706,368
Actual/Estimated Collections 18,259,031 19,582,291 19,945,137 21,583,899 22,445,004 23,676,266
Percent of Collection-Year 94.3% 93.2% 93.7% 95.6% 96% 96%
Percent of Collection-March 92.9% 91.7% 92.3% 93.0% 94.4%
Value of Mill 764,779 755,778 755,795 797,734 797,426 798,832(Line 4 ÷ Line 2)
Total Amount Collected $ 253,904 $ 326,160 305,704 579,411 385,000(April-June)
EARNED INCOME TAXES
2001-2002 2002-03 2003-04 2004-05 2005-06Actual Actual Actual Actual Estimate
Total Receipts $2,995,687 $ 2,868,066 $ 3,066,928 $ 3,243,154 $ 3,297,632
LESS:Claims Paid 179,749 8,764 11,081 12,296 12,500Distributions (Other Collectors) 1,255,665 1,378,816 1,542,029 1,755,745 1,735,132
Net Collections - June 30 $1,560,273 $ 1,480,486 $ 1,513,818 $ 1,475,113 $ 1,550,000Percent of CollectionsRetained 52.1% 51.6% 49.4% 45.5% 47.0%
As of March 31Total Receipts $2,070,920 $ 2,046,944 $ 2,221,082 $ 2,352,633 $ 2,397,632
LESS:Claims Paid 78,908 1,888 2,696 2,468 1,785Distributions(Other Collectors) 924,820 1,034,233 1,197,577 1,368,718 1,346,541
Net Collections-March 31 $1,067,192 $ 1,010,823 $ 1,020,809 $ 981,447 $ 1,049,306
2006-07 RETIREMENT RATEThe Pennsylvania Public School Employee’s Retirement System Board, on Friday, December 9, 2005, set the newrate for the 2006-2007 employer retirement contribution. It will be increased from 4.69 to 6.46. The following is how this will affect the district based on 2005-2006 salaries:
2006-2007 Proposed Rate 6.46%2005-2006 Rate 4.69%Increase 1.77%% Increase 37.74%2005-2006 Estimated Retirement Wages $20,116,546
2005-06 2005-06 2006-07
Estimated Retirement Wages $20,128,507 $20,128,507 $20, 860,960
Retirement Rates .0469 .0646 .0646
Estimated Retirement Costs $ 944,027 $ 1,300,302 $ 1,347,618
Increased Retirement Costs $ 356,275 $ 403,591
% Increase 37.74% 42.75%
State Share of Increase $ 178,137 $ 201,795
Pottstown Share of Increase $ 178,138 $ 201,796
Pottstown School DistrictBudget Analysis by Object
2006-07 2006-07 2006-07Budget Increase to 2005-06 2005-06 Increase to 2004-05
% of Total 2005-06 Budget Estimate 2005-06 Est. Actual
100 Personnel Services 21,629,105 862,676 20,766,429 20,772,203 856,902 20,220,411 Salaries 49.53% 4.15% 4.13%
200 Personnel Services 7,212,999 703,218 6,509,781 6,500,826 712,173 6,007,212 Fringe Benefits 16.52% 10.80% 10.96%
300 Contracted 1,668,686 (88,329) 1,757,015 2,159,313 (490,627) 1,976,408 Professional Services 3.82% -5.03% -22.72%
Pottstown School DistrictBudget Analysis by Object
2006-07 2006-07 2006-07Budget Increase to 2005-06 2005-06 Increase to 2004-05
% of Total 2005-06 Budget Estimate 2005-06 Est. Actual
400 Other Contracted 1,392,195 (51,877) 1,444,072 1,507,876 (115,681) 1,442,876 Services 3.19% -3.59% -7.67%
500 Other Purchased 4,937,676 686,917 4,250,759 4,533,666 404,010 3,882,248 Services 11.31% 16.16% 8.91%
600 Supplies 2,180,061 404,032 1,776,029 1,739,729 440,332 1,603,155 4.99% 22.75% 25.31%
Pottstown School DistrictBudget Analysis by Object
2006-07 2006-07 2006-07Budget Increase to 2005-06 2005-06 Increase to 2004-05
% of Total 2005-06 Budget Estimate 2005-06 Est. Actual
700 Property & Equipment 338,614 229,627 108,987 388,470 (49,856) 404,983 0.78% 210.69% -12.83%
800 Other Objects 52,735 (25,525) 78,260 52,085 650 65,110 Dues & Fees 0.12% -32.62% 1.25%
Debt Service 3,191,221 (394,263) 3,585,484 3,201,970 (10,749) 3,150,628 7.31% -11.00% - -0.34%
Pottstown School DistrictBudget Analysis by Object
2006-07 2006-07 2006-07Budget Increase to 2005-06 2005-06 Increase to 2004-05
% of Total 2005-06 Budget Estimate 2005-06 Est. Actual
Athletic Fund Contribution 457,202 20,600 436,602 434,206 22,996 440,000 1.05% 4.72% 5.30%
Data Processing Fund 189,021 (16,317) 205,338 201,836 (12,815) 192,420 0.43% -7.95% -6.35%
Food Service Fund 7,000 - 7,000 11,000 6,387 0.02% 0.00%
Pottstown School DistrictBudget Analysis by Object
2006-07 2006-07 2006-07Budget Increase to 2005-06 2005-06 Increase to 2004-05
% of Total 2005-06 Budget Estimate 2005-06 Est. Actual
Capital Reserve 9,000 (131,950) 140,950 134,000 (125,000) 8,426 0.02% -93.28%
Capital Projects - (10,000) 10,000 223,000 (223,000) 6,000 0.00%
Budget Reserve 400,000 - 400,000 - 400,000 - 0.92%
43,665,516 2,188,810 41,476,706 41,860,180 1,805,336 39,406,262 5.28% 4.31%
2006-07 NEW PERSONNELAmount Mills
Staff DevelopmentLiteracy Coach (LTS)-Grant Funded
Salary $35,963Benefits 12,099 $ 48,062 .0602
Accountability Block Grant Funded ($48,062) (.0602)
Literacy Coach (Math) (LTS)
Salary $35,963Benefits 12,099 $ 48,062 .0602
2006-07 NEW PERSONNEL
Amount Mills
Special EducationLSS Teacher-Elementary-Grant Funded
Salary $41,200Benefits $13,131 $54,331 .0680
IDEA Grant (54,331) (.0680)
LSS Teacher-SecondarySalary $41,200Benefits $13,131 $54,331 .0680
2006-07 NEW PERSONNEL
Amount MillsEstimated Savings-LSS Tuition
Elementary $88,950Secondary 51,600 ( 140,550) (.1759)
Guidance ServicesMiddle School
Part-Time Guidance Secretaryto Full-Time (.5) 15,235 .0191
Support Services2-Occupational Therapists #1 67,221 .0841
#2 67,221 .08411-Physical Therapist 67,221 .0841
LESS: Estimated Contract Cost ( 197,830) (.2476)
Total Estimated Cost – New Personnel ($ 19,089) (.0239)
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Curriculum Budget
Language Arts Adoption:Elementary $128,000Middle School 8,397High School 11,557 $147,594 .1852
Foreign Language Adoption:Middle School $ 1,626High School 4,832 6,458 .0081
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Guidance BudgetAP Test Payments $ 7,462 .0093
Technology BudgetLincoln School TV Initiative-Equipment 12,000 .015Data Management Student Assessment
and Curriculum Software 59,006 .0739
ILS Replacement/Upgrade5 Elementary Buildings @ $30,000 150,000 .1878
Infrastructure Upgrades-NetworkSwitches 85,000 .1064
Replace 150 PC’s @ High School 142,000 .1778School Book Software 12,064 .0151
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Library BudgetLibrary Books $ 45,000 .0563
Staff DevelopmentContracted Literacy Coordinator 6,500 .0081
Support OperationsSubstitute Caller System:
Annual Cost $ 5,679One Time Setup 2,500
$ 8,179Cost-Current System 6,200 1,979 .0025
Occupation/Physical Therapist Supplies 6,600 .0083
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Maintenance Budget – BuildingsContracted Services:
Maintenance Building:Roof Repairs $ 2,700 .0034
Barth Elementary School:Roof Repairs over Exterior Doors 1,500 .0019
Edgewood Elementary School:Repair Leaking Boiler 4,000 .0050
Franklin Elementary School:Move Adm. Bldg. Boiler to Franklin 20,000 .0250Replace Columbia Boiler
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Lincoln Elementary School:Recoat Library Roof $ 4,400 .0055
Rupert Elementary School:Magnetic Door Lock 3,800 .0047
Pottstown Middle School:Upgrade Security System 2,000 .0025
Pottstown High School:Recoat Stage Roof 5,000 .0063Replace 2 Security Gates 2,400 .0030
2006-07 EXPENDITURE HIGHLIGHTS
Amount MillSupplies:
Maintenance Building:Roof Repair Materials 4,850 .0061
Edgewood Elementary School:Panic Door Hardware-Bus Entrance 3,000 .0037
Rupert Elementary School:Doors and Hardware 2,500 .0031
Exterior Basement Gate 2,000 .0025
Pottstown High School:2 Sets Exterior Doors 5,400 .0067
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Maintenance Budget – GroundsContracted Services:Administration Building:
Replace Front Sidewalk & Landing $ 5,900 .0074
Franklin Elementary School:Replace Baseball Backstop 4,400 .0055
Rupert Elementary School:Remove 2 Trees 2,000 .0025
2006-07 EXPENDITURE HIGHLIGHTS
Amount Mills
Maintenance Budget – EquipmentReplace John Deere Riding Mower 11,000 .013818’ Equipment Hauling Trailer 2,500 .0031
Security BudgetSafe Schools Equipment 3,000 .0037
Total Proposed Additional Budget Items $772,013 .9664
2006-2007 BUDGETPRIORITY #2 ITEMS DELETED FROM BUDGET
NEW PERSONNEL Amount Mills
Deficit($1,498,189) (1.875.8)
Regular EducationIST Teacher $ 52,356 .0655IST Coach 28,343 .0355
Special Education(2) Special Education Assistants 57,976 .0726
Technology BudgetRetirement – Eliminate Position through Attrition 12,614 .0158
Curriculum BudgetInternet II
Equipment 6,400 .0080
Virtual High SchoolFees $ 2,000Training 1,500 3,500 .0044
Amount MillsMaintenance Budget – Buildings
Contracted Services:Administration Building:
Fabricate/install hand rails (4) 2,500 .0031
Pottstown Middle School:Extend Gas Vent Pipes 3,500 .0044
Supplies:Administration Building:
Boiler Room Door 1,100 .0014
Rupert Elementary School:Exterior Basement Gate 2,000 .0025
Pottstown Middle School:1 Set Exterior Doors-S.E. Corner 1,500 .001930 Paper Towel Dispensers 1,500 .0019
Equipment:Pottstown High School:
Floor Finish Applicator 950 .0012
Maintenance Budget – GroundsContracted Services:Edgewood Elementary School:
Security Fence 4,500 .0056
Lincoln Elementary School:Patch Asphalt Dumpster 750 .0009
Amount Mills
Maintenance Budget – GroundsContracted Services - Continued:Pottstown Middle School:
Replace Concrete Landing S.W. Corner 2,000 .0025
Ground Supplies:Franklin Elementary School:
Infield Mix 1,000 .0013
Maintenance Budget – EquipmentLeaf Collection Machine 5,100 .0064
Athletic Budget:Reduce to 5.3% Index 5,150 .0064
TOTAL PRIORITY #2 ITEMS $192,739 .2255
Deficit ($1,498,189)Priority #2 Items 192,739
Revised Deficit ($1,305,450)
(1,305,450) ÷ $798,832 = 1.6342 or 5.81%
CAPITAL RESERVE
Amount Mills
Maintenance Budget – Equipment:Maintenance
Replace John Deere Riding Mower $11,000 .013818’ Equipment Hauling Trailer 2,500 .0031
TOTAL BUDGET ITEMS – UTILIZE CAPITAL RESERVE $13,500 .0169
Deficit ( 1,305,450)Capital Reserve 13,500
($1,291,950)
(1,291,950) ÷ $798,832 = 1.6173 or 5.75%
FUND BALANCE
Amount Mills
Technology Budget:High School
Utilize Fund Balance to Purchase ReplacementPC’s at the High School $100,253 .1255
Total Estimated Cost $142,000Fund Balance 100,253 – 70%General Fund $ 41,747 – 30%
Deficit ( 1,291,950)Fund Balance 100,253Revised Deficit ($1,191,657)
(1,191,697) ÷ $798,832 = 1.4918 or 5.3%
ESTIMATED FUND BALANCE
Estimated Fund Balance, June 30, 2006 $ 3,277,844
PLUS:Estimated Revenue – 2006-07 43,165,262
LESS:Estimated Expenditures $43,165,262
Fund Balance Expenditures:General Fund Expenditures 100,253 43,265,515
Estimated Fund Balance, June 30, 2007 $ 3,177,591
$3,177,591 ÷ $43,265,515 = 7.34%
NOTE: Expenditures and Revenues do not include $400,000 for Budgetary Reserve. We include $400,000 from Fund Balance to fund the Budetary Reserve.