Gateway School District Gateway School District General Fund BudgetGeneral Fund Budget

Preliminary Summary Budget Information for Preliminary Summary Budget Information for the 2015-2016 Fiscal Yearthe 2015-2016 Fiscal Year

As of April 13, 2015As of April 13, 2015

Summary of Preliminary Total Summary of Preliminary Total Revenues for 2015-2016Revenues for 2015-2016

Projected Preliminary Total Revenues for the Projected Preliminary Total Revenues for the 2015-2016 fiscal year of 2015-2016 fiscal year of $68,982,000.$68,982,000.

(***Projected Preliminary Total Revenues (***Projected Preliminary Total Revenues currently DON’T include any real estate tax currently DON’T include any real estate tax increase ($0) for the 2015-2016 fiscal year.***)increase ($0) for the 2015-2016 fiscal year.***)

DecreaseDecrease of ($1,198,000) or (1.71%)of ($1,198,000) or (1.71%) under the under the 2014-2015 fiscal year budgeted Total Revenues.2014-2015 fiscal year budgeted Total Revenues.

Summary of Preliminary Total Summary of Preliminary Total Expenditures for 2015-2016Expenditures for 2015-2016

Projected Preliminary Total Expenditures for the Projected Preliminary Total Expenditures for the 2015-2016 fiscal year of 2015-2016 fiscal year of $73,293,000.$73,293,000.

IncreaseIncrease of $3,113,000 or 4.44%of $3,113,000 or 4.44% over the over the 2014-2015 fiscal year budgeted Total 2014-2015 fiscal year budgeted Total Expenditures.Expenditures.

Net Preliminary Budgetary Net Preliminary Budgetary Shortfall or Deficit for 2015-2016Shortfall or Deficit for 2015-2016

DecreaseDecrease in Revenues of in Revenues of ($1,198,000)($1,198,000) + + IncreaseIncrease in Expenditures of in Expenditures of $3,113,000$3,113,000 = =

Net Projected Preliminary Total Budget Net Projected Preliminary Total Budget Shortfall or Deficit for the 2015-2016 Shortfall or Deficit for the 2015-2016 fiscal year of ($4,311,000).fiscal year of ($4,311,000).

Two Significant Issues Impacting Two Significant Issues Impacting the Budget for 2015-2016the Budget for 2015-2016

Net Revenues are DecreasingNet Revenues are Decreasing primarily due to primarily due to a Decrease in Current Year Real Estate Tax a Decrease in Current Year Real Estate Tax Revenues and the 14-15 fiscal year Utilization of Revenues and the 14-15 fiscal year Utilization of Fund Balance. Fund Balance.

Net Expenditures are IncreasingNet Expenditures are Increasing primarily due primarily due to an Increase in the Required Employer PSERS to an Increase in the Required Employer PSERS contribution.contribution.

Direct District Impact of Preliminary State Direct District Impact of Preliminary State Budget Proposals for 2015-2016 Budget Proposals for 2015-2016

IncreaseIncrease of of $605,778$605,778 in Basic Education in Basic Education Subsidy in the State budget. Subsidy in the State budget.

IncreaseIncrease of of $162,885$162,885 in Special Education in Special Education Subsidy. Subsidy.

Increases Increases NOTNOT Included in the 2015-2016 fiscal Included in the 2015-2016 fiscal year Budget due to the unlikelihood of the State year Budget due to the unlikelihood of the State being able to fund the increases. Time will tell! being able to fund the increases. Time will tell!

Direct District Impact of Preliminary State Direct District Impact of Preliminary State Budget Proposals for 2015-2016Budget Proposals for 2015-2016

State grant called the State grant called the Ready to Learn Block GrantReady to Learn Block Grant (RLBG) to be (RLBG) to be included in the BEF for the 2015-2016 fiscal year - included in the BEF for the 2015-2016 fiscal year - ??

Restore the Accountability Block Grant funding - Restore the Accountability Block Grant funding - ?? (This grant was (This grant was collapsed into the RLBG for the 2014-2015 fiscal year.)collapsed into the RLBG for the 2014-2015 fiscal year.)

Charter school funding reimbursement of approximately Charter school funding reimbursement of approximately 10%10% of the of the required charter school tuition expenditure payments the District is required charter school tuition expenditure payments the District is required to make for the 2015-2016 fiscal year - required to make for the 2015-2016 fiscal year - ??

Reduction in tuition expenditure payments paid by the District to Reduction in tuition expenditure payments paid by the District to cyber charter schools for the 2015-2016 fiscal year - cyber charter schools for the 2015-2016 fiscal year - ??

319,590

528,654

794,782 846,678 818,538

1,108,661

1,736,928

2,106,318

3,286,398

3,811,628

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Charter & Cyber Charter School Expenditures

Proposed Change to Cyber Proposed Change to Cyber Charter School TuitionCharter School Tuition

Establish a statewide regular education student tuition Establish a statewide regular education student tuition rate for cyber charter schools of rate for cyber charter schools of $5,950$5,950..

GSD Adjusted 14-15 Rate $13,282.09GSD Adjusted 14-15 Rate $13,282.09 Less: New State Rate (Less: New State Rate ($5,950.00$5,950.00) ) GSD Savings Per Student GSD Savings Per Student $7,332.09$7,332.09

Projected GSD Regular Education Cyber School Savings Projected GSD Regular Education Cyber School Savings of of $388,600.77 for 53 students$388,600.77 for 53 students..

Other Proposed Charter Other Proposed Charter School ChangesSchool Changes

For cyber charter school special education students, the For cyber charter school special education students, the flat rate of $5,950 would be marked up based on the cost flat rate of $5,950 would be marked up based on the cost category of the student over three different cost category of the student over three different cost categories.categories.

Make pension “double-dip” permanent.Make pension “double-dip” permanent.

Require an annual reconciliation and audit of Require an annual reconciliation and audit of expenditures & require refunds of excess tuition paid expenditures & require refunds of excess tuition paid back to the school districts.back to the school districts.

Proposed State Tax Increases Proposed State Tax Increases and New State Taxesand New State Taxes

Increase the State’s Personal Income Tax from 3.07% to Increase the State’s Personal Income Tax from 3.07% to 3.70%3.70%.. Increase the State’s Sales Tax from 6.0% to Increase the State’s Sales Tax from 6.0% to 6.6%6.6% & eliminate nearly & eliminate nearly

all current exemptions (day care expense & nursing home care).all current exemptions (day care expense & nursing home care). Increase the State’s Cigarette Tax from $1.60 per pack to Increase the State’s Cigarette Tax from $1.60 per pack to $2.60$2.60 per per

pack.pack. Create a New Natural Gas Severance Tax of Create a New Natural Gas Severance Tax of 5%5% at the well head at the well head

plus $.047 per MCFplus $.047 per MCF.. Increase the State’s Bank Shares Tax from .89% to Increase the State’s Bank Shares Tax from .89% to 1.25%1.25%.. Decrease the state’s Corporate Net Income Tax from 9.99% to Decrease the state’s Corporate Net Income Tax from 9.99% to

5.99%5.99% beginning in tax year 2016 and then further reductions over beginning in tax year 2016 and then further reductions over subsequent years.subsequent years.

State Retirement Changes – No State Retirement Changes – No Immediate Changes for 2015-2016Immediate Changes for 2015-2016

No changes to the Pennsylvania School No changes to the Pennsylvania School Employees Retirement System (Employees Retirement System (PSERSPSERS) have ) have been immediately proposed to provide financial been immediately proposed to provide financial relief to the school districts. relief to the school districts.

(***ALL Changes to PSERS must first be (***ALL Changes to PSERS must first be approved by the State Legislature.***)approved by the State Legislature.***)

Eliminate PSERS fund management fees and Eliminate PSERS fund management fees and issue bonds for the unfunded pension liability - issue bonds for the unfunded pension liability - ??

PA Pension Reform IssuesPA Pension Reform Issues $50 billion in unfunded State Pensions (SERS & PSERS).$50 billion in unfunded State Pensions (SERS & PSERS). PA is PA is 22ndnd-most underfunded pension-most underfunded pension next to New Jersey. next to New Jersey. Proposed plan to issue Proposed plan to issue $3 billion$3 billion in pension bonds to reduce in pension bonds to reduce

unfunded liability by $8 billion.unfunded liability by $8 billion. 33rdrd-worst Moody’s credit rating-worst Moody’s credit rating of any state (Illinois & New Jersey of any state (Illinois & New Jersey

rank worse).rank worse). Pension bonds to be paid through increased profits earned through Pension bonds to be paid through increased profits earned through

modernization of State LCB system.modernization of State LCB system. Current plan management fees and associated income – “You get Current plan management fees and associated income – “You get

what you pay for.”what you pay for.” For $482 million in investment fees, PSERS earned an additional For $482 million in investment fees, PSERS earned an additional

$1.27 billion net of the fees above the index return.$1.27 billion net of the fees above the index return.

State Retirement Changes – No State Retirement Changes – No Expected Changes for 2015-2016Expected Changes for 2015-2016

NONO expected reduction in the projected 2015- expected reduction in the projected 2015-2016 fiscal year employer contribution rate of 2016 fiscal year employer contribution rate of 25.84%. 25.84%.

Current Current netnet effect (Increase in Expenditures of effect (Increase in Expenditures of $1,567,289 Less Increase in State 50% $1,567,289 Less Increase in State 50% Reimbursement Subsidy of $783,644) in the Reimbursement Subsidy of $783,644) in the 2015-2016 fiscal year Preliminary Budget is an 2015-2016 fiscal year Preliminary Budget is an increase in pension expenditures of increase in pension expenditures of $783,645$783,645 to to PSERS. PSERS.

16.93

21.4

25.84

29.6930.62

31.5632.23

.

5.

10.

15.

20.

25.

30.

35.

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

Actual & Projected PSERS Employer Rates

1,341,136

1,870,435

2,173,665

1,433,857 1,480,574

1,859,348

2,738,924

3,849,120

5,207,707

6,858,148

8,415,593

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Employer Retirement (PSERS) Expenditures

Preliminary Revenue and Preliminary Revenue and Expenditure Issues for 2015-2016Expenditure Issues for 2015-2016

ReductionReduction in Current Real Estate Tax revenues in Current Real Estate Tax revenues ((Loss of $579,189Loss of $579,189).).

Actual Increases of Actual Increases of 22..75% for PPO & 2.75% for 75% for PPO & 2.75% for EPOEPO (EPO is formerly the HMO) in employer (EPO is formerly the HMO) in employer medical insurance expenditures. medical insurance expenditures.

Increase of 4.44%Increase of 4.44% (from 21.40% to (from 21.40% to 25.84%25.84%) in ) in required employer retirement benefit required employer retirement benefit expenditures to PSERS. expenditures to PSERS.

Composition of Major Revenue Composition of Major Revenue Categories for 2015-2016Categories for 2015-2016

LocalLocal – – 72%72% of the Preliminary 15-16 Budget. of the Preliminary 15-16 Budget.

StateState – – 26%26% of the Preliminary 15-16 Budget. of the Preliminary 15-16 Budget.

FederalFederal - - 2%2% of the Preliminary 15-16 Budget. of the Preliminary 15-16 Budget.

FLAT or very Little Revenue Growth Projected in the FLAT or very Little Revenue Growth Projected in the 2015-2016 fiscal year Budget2015-2016 fiscal year Budget..

Local Revenues72%

State Revenues26%

Federal Revenues2%

Major Revenue Categories for 2015-2016

Major Types of Local Revenue Major Types of Local Revenue Categories for 2015-2016Categories for 2015-2016

Current Real Estate Tax (Largest)Current Real Estate Tax (Largest).. Current Earned Income Tax.Current Earned Income Tax. Delinquent Real Estate Tax.Delinquent Real Estate Tax. Mercantile Tax.Mercantile Tax. Deed Transfer Tax. Deed Transfer Tax. Delinquent Earned Income Tax. Delinquent Earned Income Tax. Local Services Tax. Local Services Tax.

Major Types of State Revenue Major Types of State Revenue Categories for 2015-2016Categories for 2015-2016

Basic Education Subsidy (Largest)Basic Education Subsidy (Largest).. Retirement Reimbursement Subsidy – 50%. Retirement Reimbursement Subsidy – 50%. Special Education Subsidy. Special Education Subsidy. Property Tax Reduction Allocation. Property Tax Reduction Allocation. SS & FICA Reimbursement Subsidy – 50%.SS & FICA Reimbursement Subsidy – 50%. Transportation Reimbursement Subsidy.Transportation Reimbursement Subsidy. Debt Service Reimbursement Subsidy.Debt Service Reimbursement Subsidy. Ready To Learn Block Grant. Ready To Learn Block Grant.

Major Types of Federal Revenue Major Types of Federal Revenue Categories for 2015-2016Categories for 2015-2016

Title I Funds (Largest)Title I Funds (Largest) - Passed Through PDE. - Passed Through PDE. IDEA Funds - Passed Through the AIU#3.IDEA Funds - Passed Through the AIU#3. Title II Funds - Passed Through PDE.Title II Funds - Passed Through PDE. ACCESS Funds - Passed Through PDE.ACCESS Funds - Passed Through PDE. Title III Funds - Passed Through PDE.Title III Funds - Passed Through PDE.

Top Ten Revenues for 2015-2016Top Ten Revenues for 2015-2016

1. 1. Current Real Estate TaxesCurrent Real Estate Taxes - - $41,749,302$41,749,302 2. Basic Education Subsidy - $7,019,9432. Basic Education Subsidy - $7,019,943 3. Retirement Reimburse. Subsidy - $4,207,7963. Retirement Reimburse. Subsidy - $4,207,796 4. Current Earned Income Taxes - $3,600,0004. Current Earned Income Taxes - $3,600,000 5. Special Education Subsidy - $1,987,3055. Special Education Subsidy - $1,987,305 6. Delinquent Real Estate Taxes - $1,503,000 6. Delinquent Real Estate Taxes - $1,503,000 7. State Property Tax Reduction - $1,459,7417. State Property Tax Reduction - $1,459,741 8. SS & FICA Reimburse. Subsidy - $1,253,3418. SS & FICA Reimburse. Subsidy - $1,253,341 9. Mercantile Taxes - $1,223,0009. Mercantile Taxes - $1,223,000 10.Transportation Reimb. Subsidy - $1,175,00010.Transportation Reimb. Subsidy - $1,175,000

Current Real Estate Taxes61%

BEF10%

PSERS6%

EIT5%SEF

3%D.R.E.

2%Prop2%

SS2%

Merc2%

Trans2%

Other5%

Major Revenue Categories for 2015-2016

Top Ten Expenditures for 2015-2016Top Ten Expenditures for 2015-2016

1. 1. All Employee Wages & SalariesAll Employee Wages & Salaries - - $32,348,000$32,348,000 2. Retirement Expenditures - $8,415,5932. Retirement Expenditures - $8,415,593 3. Health Insurance Expenditures - $6,050,0003. Health Insurance Expenditures - $6,050,000 4. Transportation Expenditures - $4,432,0004. Transportation Expenditures - $4,432,000 5. Bond Debt Service Expenditures - $4,003,2505. Bond Debt Service Expenditures - $4,003,250 6. Charter & Cyber School Expenditures - $3,900,000 6. Charter & Cyber School Expenditures - $3,900,000 7. Special Education Expenditures (Other) - $2,857,0007. Special Education Expenditures (Other) - $2,857,000 8. SS & FICA Expenditures - $2,506,6838. SS & FICA Expenditures - $2,506,683 9. Technology Expenditures (All) - $1,757,0009. Technology Expenditures (All) - $1,757,000 10.Utility Expenditures - $1,062,00010.Utility Expenditures - $1,062,000

Current Real Estate Taxes61%

BEF10%

PSERS6%

EIT5%SEF

3%D.R.E.

2%Prop2%

SS2%

Merc2%

Trans2%

Other5%

Major Revenue Categories for 2015-2016

Employee Wages & Salaries

44%

PSERS12%

Health Insurance8%

Transportation6%

Bond Debt Service6%

Charters5%

Special Ed4%SS

3%Tech2%

Utility2%

Other Exps.8%

Major Expenditure Categories for 2015-2016

Preliminary Total Personnel & Employee Preliminary Total Personnel & Employee Benefit Expenditures for 2015-2016Benefit Expenditures for 2015-2016

Projected Preliminary Personnel Wage & Salary Projected Preliminary Personnel Wage & Salary Expenditures = Expenditures = 44.1%44.1% of the 2015-2016 fiscal of the 2015-2016 fiscal year Budget.year Budget.

Projected Preliminary Employee Benefits Projected Preliminary Employee Benefits Expenditures = Expenditures = 24.4%24.4% of the 2015-2016 fiscal of the 2015-2016 fiscal year Budget.year Budget.

Projected Preliminary Total Gross Employee Projected Preliminary Total Gross Employee Expenditures = 68.5% of the Total 2015-2016 Expenditures = 68.5% of the Total 2015-2016 fiscal year Preliminary Budget.fiscal year Preliminary Budget.

Projection of Ending Total Fund Projection of Ending Total Fund Balance at 6/30/15 for 2014-2015Balance at 6/30/15 for 2014-2015

Beginning Fund Balance as of 7/1/14 Beginning Fund Balance as of 7/1/14 $10,074,826$10,074,826

Less: 1. Fund Balance to Balance 14-15 Budget ($1,777,000)Less: 1. Fund Balance to Balance 14-15 Budget ($1,777,000) 2. P/Y Real Estate Tax Refunds 2. P/Y Real Estate Tax Refunds ($ 451,945) ($ 451,945) 3. C/Y Real Estate Tax Refunds ($ 238,512)3. C/Y Real Estate Tax Refunds ($ 238,512) 4. Student Parking Fees Not Collected ($ 9,800)4. Student Parking Fees Not Collected ($ 9,800) 5. Other Expenditures ($ To Be Determined)5. Other Expenditures ($ To Be Determined)

Add: 1. No Major Increases to List at this Time. Add: 1. No Major Increases to List at this Time. $ 0$ 0 Net Projected Decrease for 2014-2015 Fiscal Year Net Projected Decrease for 2014-2015 Fiscal Year ($2,477,257)($2,477,257)

Projected Ending Fund Balance as of 6/30/15 Projected Ending Fund Balance as of 6/30/15 $7,597,569$7,597,569

Composition of Projected Ending Fund Composition of Projected Ending Fund Balance at 6/30/15 for 2014-2015Balance at 6/30/15 for 2014-2015

Unassigned Fund Balance $1,043,551Unassigned Fund Balance $1,043,551 Nonspendable Fund Balance $ 886,504Nonspendable Fund Balance $ 886,504 Committed Fund Balance Committed Fund Balance $5,667,514$5,667,514

Projected Total Fund Balance Projected Total Fund Balance $7,597,569$7,597,569

Components of Fund BalanceComponents of Fund Balance Unassigned Fund BalanceUnassigned Fund Balance: Portion that : Portion that is immediately availableis immediately available

to be utilized for identified purposes such as balancing the Budget & to be utilized for identified purposes such as balancing the Budget & making transfers to other funds.making transfers to other funds.

Nonspendable Fund BalanceNonspendable Fund Balance: Portion that offsets the amount of : Portion that offsets the amount of Prepaid Expenditures on the District’s balance sheet & Prepaid Expenditures on the District’s balance sheet & is not is not availableavailable for expenditure. for expenditure.

Committed Fund BalanceCommitted Fund Balance: Portion that : Portion that is not immediately is not immediately availableavailable due to official designation by the Board for specific due to official designation by the Board for specific purposes through a formal Board resolution. Can be designated by purposes through a formal Board resolution. Can be designated by the Board for different purposes or classified back to Unassigned the Board for different purposes or classified back to Unassigned Fund Balance through an additional formal Board resolution. Fund Balance through an additional formal Board resolution. Designations Currently IncludeDesignations Currently Include: 1. Future employer health insurance : 1. Future employer health insurance increases; 2. Future employer pension cost increases; & 3. Future increases; 2. Future employer pension cost increases; & 3. Future capital repair project expenditures for District school buildings. capital repair project expenditures for District school buildings.

Projection of Total Fund Balance at Projection of Total Fund Balance at 6/30/16 for 2015-20166/30/16 for 2015-2016

Projected Fund Balance as of 7/1/15 $ 7,597,569Projected Fund Balance as of 7/1/15 $ 7,597,569

Less: Projected Utilization to Balance the Less: Projected Utilization to Balance the ($ 4,311,000)($ 4,311,000) 2015-2016 fiscal year Budget 2015-2016 fiscal year Budget

Projected Fund Balance as of 6/30/16 Projected Fund Balance as of 6/30/16 $ 3,286,569$ 3,286,569

The Projected Total Ending Fund Balance Represents The Projected Total Ending Fund Balance Represents 4.48%4.48% of the of the Preliminary 2015-2016 fiscal year Budget.Preliminary 2015-2016 fiscal year Budget.

((NOTENOTE:: The Unassigned Fund Balance portion of the Total Ending The Unassigned Fund Balance portion of the Total Ending Fund Balance is projected to be Fund Balance is projected to be 1.42%1.42% of the 2015-2016 fiscal year of the 2015-2016 fiscal year budgeted expenditures which is in compliance with 24 PS 6-688 or budgeted expenditures which is in compliance with 24 PS 6-688 or less than less than 8%8% in a fiscal year when the real estate tax millage rate is in a fiscal year when the real estate tax millage rate is increased by the District.)increased by the District.)

Balancing Two Fiscal Year BudgetsBalancing Two Fiscal Year Budgets

Utilization of Fund BalanceUtilization of Fund Balance::

Projected Net Used for 15-16 $4,311,000Projected Net Used for 15-16 $4,311,000

Less: 14-15 Utilization (Less: 14-15 Utilization ($1,777,000$1,777,000))

Actual Amount for 15-16 $2,534,000Actual Amount for 15-16 $2,534,000

What if Only Two Budget Line Items What if Only Two Budget Line Items Didn’t Change for 2015-2016?Didn’t Change for 2015-2016?

Utilization of Fund Balance ($4,311,000)Utilization of Fund Balance ($4,311,000) Add: Net Increase in PSERS $ 783,645Add: Net Increase in PSERS $ 783,645 Expenditures.Expenditures. Add: Net Decrease in Current Year Add: Net Decrease in Current Year $ 579,189$ 579,189

Real Estate Tax Revenue.Real Estate Tax Revenue.

Adjusted Utilization of Fund BalanceAdjusted Utilization of Fund Balance ($2,948,166) ($2,948,166) for the 2015-2016 fiscal year if thefor the 2015-2016 fiscal year if the PSERS Rate & Current Year RealPSERS Rate & Current Year Real

Estate Tax Revenues Didn’t Change.Estate Tax Revenues Didn’t Change.

Gateway School District Gateway School District General Fund BudgetGeneral Fund Budget

Preliminary Real Estate Tax Millage Rate & Other Preliminary Real Estate Tax Millage Rate & Other Budget Information for the 2015-2016 Fiscal YearBudget Information for the 2015-2016 Fiscal Year

As of April 13, 2015As of April 13, 2015

What is Millage?What is Millage? Millage is a tax rate applied to a real estate property’s Millage is a tax rate applied to a real estate property’s

assessed valuation for the purpose of revenue assessed valuation for the purpose of revenue generation by a taxing body such as the District.generation by a taxing body such as the District.

Each mill represents $1 of tax assessment per Each mill represents $1 of tax assessment per $1,000 of assessed property value.$1,000 of assessed property value.

A mill is derived from the root word mill, which means A mill is derived from the root word mill, which means “thousand.”“thousand.”

Thus, one mill is one part per thousand or 0.1% which Thus, one mill is one part per thousand or 0.1% which can also be expressed as .001 for calculation purposes.can also be expressed as .001 for calculation purposes.

Gateway School District Real Estate Tax Gateway School District Real Estate Tax Millage Rate for 2014-2015Millage Rate for 2014-2015

At At 18.8919 Mills18.8919 Mills in the 2014-2015 fiscal year, in the 2014-2015 fiscal year, GSD has the GSD has the 1818thth Lowest Lowest Millage RateMillage Rate out of out of 42 school districts in Allegheny County.42 school districts in Allegheny County.

McKeesport Area School District – McKeesport Area School District – LowestLowest in in Allegheny County at Allegheny County at 15.70 Mills15.70 Mills..

Wilkinsburg Area School District – Wilkinsburg Area School District – HighestHighest in in Allegheny County at Allegheny County at 32.63 Mills32.63 Mills..

Neighboring Allegheny County School District Neighboring Allegheny County School District Real Estate Tax Millage Rates for 2014-2015Real Estate Tax Millage Rates for 2014-2015

Gateway School District – Gateway School District – 18.891918.8919 Mills Mills Plum Borough School Dist. – Plum Borough School Dist. – 18.758018.7580 Mills Mills Penn Hills School District – Penn Hills School District – 24.154024.1540 Mills Mills Woodland Hills School Dist. – Woodland Hills School Dist. – 22.40022.400 Mills Mills East Allegheny School Dist. – East Allegheny School Dist. – 27.54027.540 Mills Mills

18.6283 18.63 18.6718.758

18.8461 18.8919

19.2083

19.604

20.3494

20.6052

21.31

17.

17.5

18.

18.5

19.

19.5

20.

20.5

21.

21.5

22.

Fox Chapel Keystone Oaks Avonworth Plum Borough Moon Area Gateway Pine-Richland Carlynton Allegheny ValleyElizabeth Forward Steel Valley

Select Allegheny County Real Estate Tax Millage Rates for 14-15

Effects of Allegheny County Real Effects of Allegheny County Real Estate Reassessment in 2015-2016Estate Reassessment in 2015-2016

Real estate assessment values for properties located in Real estate assessment values for properties located in Monroeville and Pitcairn Monroeville and Pitcairn CONTINUECONTINUE to decrease in to decrease in value and owner appeals will value and owner appeals will CONTINUECONTINUE to occur in the to occur in the 2015-2016 fiscal year.2015-2016 fiscal year.

Current year and prior year real estate tax refunds will Current year and prior year real estate tax refunds will CONTINUECONTINUE to have a negative effect on current year to have a negative effect on current year real estate tax revenue as well as prior year real estate real estate tax revenue as well as prior year real estate tax refund expenditures which will ultimately effect the tax refund expenditures which will ultimately effect the District’s Fund Balance.District’s Fund Balance.

District Real Estate Assessment District Real Estate Assessment Issues for 2015-2016Issues for 2015-2016

The current total assessed value of the District’s real estate The current total assessed value of the District’s real estate properties properties CONTINUECONTINUE to decrease each month. to decrease each month.

The number of taxpayer appeals The number of taxpayer appeals CONTINUECONTINUE to occur and the to occur and the successful taxpayer appeals further decrease the total assessed successful taxpayer appeals further decrease the total assessed real estate value of the District.real estate value of the District.

Thus, the District’s calculation of real estate tax revenue for the Thus, the District’s calculation of real estate tax revenue for the 2015-2016 fiscal year has factored in an adjustment for the 2015-2016 fiscal year has factored in an adjustment for the continuation of successful taxpayer appeals.continuation of successful taxpayer appeals.

In addition, new taxpayer appeals will probably In addition, new taxpayer appeals will probably CONTINUECONTINUE to be to be initiated during the 2015-2016 fiscal year which initiated during the 2015-2016 fiscal year which CAN NOTCAN NOT be be quantified by the District. quantified by the District.

Continued Decline of District Total Real Continued Decline of District Total Real Estate Assessed Values During 13-14Estate Assessed Values During 13-14

6/14/136/14/13 Total Value Total Value $2,499,750,315$2,499,750,315 7/19/13 Total Value $2,463,880,1157/19/13 Total Value $2,463,880,115 8/23/13 Total Value $2,461,222,7158/23/13 Total Value $2,461,222,715 9/27/13 Total Value $2,453,451,1659/27/13 Total Value $2,453,451,165 11/8/13 Total Value $2,453,099,91511/8/13 Total Value $2,453,099,915 11/12/13 Total Value $2,447,304,61611/12/13 Total Value $2,447,304,616 12/13/13 Total Value $2,445,921,91612/13/13 Total Value $2,445,921,916 1/15/14 Total Value $2,451,626,716 (Certified Value from Allegheny County)1/15/14 Total Value $2,451,626,716 (Certified Value from Allegheny County) 1/24/14 Total Value $2,449,255,9161/24/14 Total Value $2,449,255,916 2/21/14 Total Value $2,442,479,7162/21/14 Total Value $2,442,479,716 3/28/14 Total Value $2,438,104,5663/28/14 Total Value $2,438,104,566 4/4/14 Total Value $2,438,038,0664/4/14 Total Value $2,438,038,066 4/28/14 Total Value $2,437,550,2414/28/14 Total Value $2,437,550,241 5/2/14 Total Value $2,432,476,0415/2/14 Total Value $2,432,476,041 5/9/14 Total Value $2,432,411,0415/9/14 Total Value $2,432,411,041 5/23/14 Total Value5/23/14 Total Value $2,432,411,041 $2,432,411,041 5/30/145/30/14 Total Value Total Value $2,418,463,341$2,418,463,341

From 6/14/13 to 5/30/14, the Total Real Estate Assessed Value of the District continued to Decrease by From 6/14/13 to 5/30/14, the Total Real Estate Assessed Value of the District continued to Decrease by ($81,286,974) or (3.25%).($81,286,974) or (3.25%).

District utilized a (District utilized a ($36,000,000)$36,000,000) assessment value adjustment leaving a balance of ( assessment value adjustment leaving a balance of ($45,286,974)$45,286,974) unanticipated unanticipated for the 2013-2014 fiscal year. for the 2013-2014 fiscal year.

Continued Decline of District Total Real Continued Decline of District Total Real Estate Assessed Values During 14-15Estate Assessed Values During 14-15

6/14/136/14/13 Total Value Total Value $2,499,750,315$2,499,750,315 7/25/14 Total Value $2,416,512,1817/25/14 Total Value $2,416,512,181 8/29/14 Total Value $2,394,109,7818/29/14 Total Value $2,394,109,781 9/26/14 Total Value $2,392,062,9319/26/14 Total Value $2,392,062,931 10/31/14 Total Value $2,391,193,13110/31/14 Total Value $2,391,193,131 11/28/14 Total Value $2,390,995,23111/28/14 Total Value $2,390,995,231 12/12/14 Total Value $2,384,813,33112/12/14 Total Value $2,384,813,331 1/9/15 Total Value $2,392,251,431 (Certified Value from Allegheny County)1/9/15 Total Value $2,392,251,431 (Certified Value from Allegheny County) 2/20/15 Total Value $2,388,870,3312/20/15 Total Value $2,388,870,331 3/27/153/27/15 Total Value Total Value $2,388,979,556$2,388,979,556 4/??/15 Total Value $2,3??,???,??? (To be reported at future Budget & Finance Committee Meetings) 4/??/15 Total Value $2,3??,???,??? (To be reported at future Budget & Finance Committee Meetings) 5/??/15 Total Value $2,3??,???,??? (To be reported at future Budget & Finance Committee Meetings) 5/??/15 Total Value $2,3??,???,??? (To be reported at future Budget & Finance Committee Meetings) 6/??/156/??/15 Total Value Total Value $2,3??,???,???$2,3??,???,??? (To be reported at future Budget & Finance Committee Meetings) (To be reported at future Budget & Finance Committee Meetings)

From 6/14/13 to 3/27/15, the Total Real Estate Assessed Value of the District continued to Decrease by From 6/14/13 to 3/27/15, the Total Real Estate Assessed Value of the District continued to Decrease by ($110,770,759) or (4.43%).($110,770,759) or (4.43%).

District utilized a total of (District utilized a total of ($41,000,000)$41,000,000) in assessment value adjustments based on available assessment appeal in assessment value adjustments based on available assessment appeal information leaving a total balance of (information leaving a total balance of ($69,770,759)$69,770,759) unanticipated for the 2013-2014 and 2014-2015 fiscal years. unanticipated for the 2013-2014 and 2014-2015 fiscal years.

2,49

9,75

0,31

5

2,46

3,88

0,11

5

2,46

1,22

2,71

5

2,45

3,45

1,16

5

2,45

3,09

9,91

5 2,

447,

304,

616

2,44

5,92

1,91

6

2,45

1,62

6,71

6 2,

449,

255,

916

2,44

2,47

9,71

6

2,43

8,10

4,56

6 2,

438,

038,

066

2,43

7,55

0,24

1 2,

432,

476,

041

2,43

2,41

1,04

1

2,43

2,41

1,04

1 2,

418,

463,

341

2,41

6,51

2,18

1

2,39

4,10

9,78

1

2,39

2,06

2,93

1

2,39

1,19

3,13

1

2,39

0,99

5,23

1

2,38

4,81

3,33

1

2,39

2,25

1,46

1

2,38

8,87

0,33

1

2,38

8,97

9,55

6

DISTRICT REAL ESTATE ASSESSED VALUES - LOSS OF (110,770,759) FROM 6/14/13 TO 3/27/15

Assessed Value Adjustment for Taxpayer Assessed Value Adjustment for Taxpayer Real Estate Appeals in 2015-2016Real Estate Appeals in 2015-2016

District has utilized an adjustment of District has utilized an adjustment of $$7,500,0007,500,000 for current taxpayer real estate for current taxpayer real estate appeals which appeals which MAYMAY require the District to require the District to issue a refund or return current year issue a refund or return current year revenue collected by the District to the revenue collected by the District to the taxpayers during the 2015-2016 fiscal year taxpayers during the 2015-2016 fiscal year after a successful appeal. after a successful appeal.

Primary Reason for the Continued Primary Reason for the Continued Decline in District Total Real Estate Decline in District Total Real Estate

Assessed Values for 2014-2015Assessed Values for 2014-2015

Successful and Pending Taxpayer Real Estate Successful and Pending Taxpayer Real Estate Assessment Appeals!Assessment Appeals!

Thus, the District’s real estate tax millage rate was set Thus, the District’s real estate tax millage rate was set TOO LOWTOO LOW for the 2013-2014 fiscal year and is for the 2013-2014 fiscal year and is TOO TOO LOWLOW for the 2014-2015 and 2015-2016 fiscal years for the 2014-2015 and 2015-2016 fiscal years without any additional increases to equalize the real without any additional increases to equalize the real estate tax revenues back to the original calculated and estate tax revenues back to the original calculated and intended revenue amount for the 2013-2014 fiscal year.intended revenue amount for the 2013-2014 fiscal year.

Analysis of Projected Real Estate Analysis of Projected Real Estate Tax Revenue at 6/30/15 for 2014-Tax Revenue at 6/30/15 for 2014-

20152015 Amounts through 4/9/15 with additional amounts To Be Determined (TBD) Amounts through 4/9/15 with additional amounts To Be Determined (TBD)

Amount Originally Budgeted $42,328,491Amount Originally Budgeted $42,328,491Less: Amount Collected ($41,783,239)Less: Amount Collected ($41,783,239)Add: Refunds to Taxpayers Add: Refunds to Taxpayers $ 238,512$ 238,512Balance to be Collected $ 783,764Balance to be Collected $ 783,764Less: Future Delinquents Less: Future Delinquents ($ TBD)($ TBD)Amount Never to be Collected $ TBDAmount Never to be Collected $ TBDPercentage Never to be Collected TBD%Percentage Never to be Collected TBD%

Correct Real Estate Tax Millage RateCorrect Real Estate Tax Millage Rate

Utilizing the actual Utilizing the actual $110,770,759$110,770,759 decrease in the decrease in the District’s total assessed value in calculating the revenue District’s total assessed value in calculating the revenue for the 2013-2014 fiscal year, the correctly adjusted for the 2013-2014 fiscal year, the correctly adjusted millage rate would have been established at millage rate would have been established at 19.544519.5445 Mills.Mills.

District’s rank would have changed from the 18District’s rank would have changed from the 18thth to the to the 1919thth Lowest Lowest Millage Rate in Allegheny County for the Millage Rate in Allegheny County for the 2014-2015 fiscal year. 2014-2015 fiscal year.

Represents an increase of Represents an increase of .6526.6526 Mills over the 18.8919 Mills over the 18.8919 mills previously set for the 2013-2014 fiscal year.mills previously set for the 2013-2014 fiscal year.

2.3% Index - Equivalent in Mills2.3% Index - Equivalent in Mills

The District is permitted to increase the millage rate by up to a The District is permitted to increase the millage rate by up to a 2.3%2.3% (Index) for the 2015-2016 fiscal year.(Index) for the 2015-2016 fiscal year.

Current Millage: 18.8919 MillsCurrent Millage: 18.8919 Mills Multiplied by 2.3% Index: Multiplied by 2.3% Index: X .023X .023 Max Increase in Millage of: Max Increase in Millage of: .4345.4345 MillsMills

Thus, the maximum amount the Real Estate Tax Millage Rate Thus, the maximum amount the Real Estate Tax Millage Rate CANCAN be for the 2015-2016 Fiscal Year is 18.8919 Mills + .4345 be for the 2015-2016 Fiscal Year is 18.8919 Mills + .4345 Mills = 19.3264 Mills.Mills = 19.3264 Mills.

***NO INCREASE IN THE MILLAGE RATE IS CURRENTLY ***NO INCREASE IN THE MILLAGE RATE IS CURRENTLY UTILIZED TO BALANCE THE DISTRICT’S BUDGET FOR THE UTILIZED TO BALANCE THE DISTRICT’S BUDGET FOR THE 2015-2016 FISCAL YEAR.***2015-2016 FISCAL YEAR.***

Comparison of 2014-2015 to Maximum Real Comparison of 2014-2015 to Maximum Real Estate Tax Millage Rate FOR 2015-2016Estate Tax Millage Rate FOR 2015-2016

2014-2015 Millage Rate: 18.8919 Mills2014-2015 Millage Rate: 18.8919 Mills 2015-2016 Maximum Millage Rate: 19.3264 Mills2015-2016 Maximum Millage Rate: 19.3264 Mills

Maximum Increase of (.4345 Mills) in the Millage Rate.Maximum Increase of (.4345 Mills) in the Millage Rate.

Maximum Increase of (2.3%) in the Millage Rate.Maximum Increase of (2.3%) in the Millage Rate.

***NO increase in the real estate tax millage rate is ***NO increase in the real estate tax millage rate is currently included in the Preliminary Budget for the currently included in the Preliminary Budget for the 2015-2016 fiscal year. A full increase of 2.3% will 2015-2016 fiscal year. A full increase of 2.3% will yield a net amount of approximately $993,776.65.***yield a net amount of approximately $993,776.65.***

$ Amount of Real Estate Tax Maximum Millage $ Amount of Real Estate Tax Maximum Millage Increase Per Resident Available for 2015-2016Increase Per Resident Available for 2015-2016

MonroevilleMonroeville::

Based on median taxable Based on median taxable value of value of $107,800$107,800..

At Maximum 2.3% Index At Maximum 2.3% Index = = $46.84/YEAR$46.84/YEAR..

At Maximum 2.3% Index At Maximum 2.3% Index = = $3.90/MONTH$3.90/MONTH..

PitcairnPitcairn::

Based on median taxable Based on median taxable value of value of $35,000$35,000..

At Maximum 2.3% Index At Maximum 2.3% Index = = $15.21/YEAR$15.21/YEAR..

At Maximum 2.3% Index At Maximum 2.3% Index = = $1.27/MONTH$1.27/MONTH..

Assessment Value for 2015-2016Assessment Value for 2015-2016

Allegheny County formally issued new certified real estate Allegheny County formally issued new certified real estate assessment values via a CD on 1/9/15 for properties located in assessment values via a CD on 1/9/15 for properties located in Monroeville and Pitcairn to be utilized by the District for the Monroeville and Pitcairn to be utilized by the District for the preliminary real estate tax calculations required in the 2015-2016 preliminary real estate tax calculations required in the 2015-2016 fiscal year Budget.fiscal year Budget.

Allegheny County will issue another CD to the District in May 2015 Allegheny County will issue another CD to the District in May 2015 with the eligible homestead properties to receive property tax relief with the eligible homestead properties to receive property tax relief for the 2015-2016 fiscal year.for the 2015-2016 fiscal year.

District compares the total 1/9/15 & the May 2015 real estate District compares the total 1/9/15 & the May 2015 real estate assessment values and millage rate calculations to the value and assessment values and millage rate calculations to the value and millage rate calculations performed on the available summary millage rate calculations performed on the available summary assessment values per the Allegheny County website. The County assessment values per the Allegheny County website. The County updates the District’s summary assessment values every two updates the District’s summary assessment values every two weeks.weeks.

Homestead Exclusion for 2015-2016Homestead Exclusion for 2015-2016

The 2014-2015 fiscal year amount is initially projected to be in the District’s The 2014-2015 fiscal year amount is initially projected to be in the District’s 2015-2016 fiscal year Budget. 2015-2016 fiscal year Budget.

State will determine (on April 15, 2015) whether any gaming revenues will State will determine (on April 15, 2015) whether any gaming revenues will actually be available for distribution to the school districts during the 2015-actually be available for distribution to the school districts during the 2015-2016 fiscal year.2016 fiscal year.

PDE will then certify and officially release the actual distribution amount to PDE will then certify and officially release the actual distribution amount to the District on May 1, 2015 (the amount of the District on May 1, 2015 (the amount of $1,459,741.27$1,459,741.27 was received for was received for the 2014-2015 fiscal year) for the 2015-2016 fiscal year.the 2014-2015 fiscal year) for the 2015-2016 fiscal year.

The 2015-2016 fiscal year would be the The 2015-2016 fiscal year would be the 88thth year year in a row for the District to in a row for the District to receive and to distribute a State gaming revenue distribution.receive and to distribute a State gaming revenue distribution.

Impact of the distribution would be Impact of the distribution would be revenue neutralrevenue neutral in the District’s 2015- in the District’s 2015-2016 fiscal year Budget.2016 fiscal year Budget.

1,458,174.25

1,458,759.37

1,458,929.28

1,458,800.97

1,458,979.17

1,459,253.43

1,459,741.27

1457000.

1457500.

1458000.

1458500.

1459000.

1459500.

1460000.

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Actual State Property Tax Reduction Allocations - $1,567.02 Increase

Homestead Exclusion for 2014-2015Homestead Exclusion for 2014-2015

$174.63$174.63 per eligible homestead property in per eligible homestead property in both Monroeville & Pitcairn for the 2014-both Monroeville & Pitcairn for the 2014-2015 fiscal year. 2015 fiscal year. ((15-16 should be similar.)15-16 should be similar.)

Monroeville Monroeville PitcairnPitcairn

.4345 Mill Increase $ 46.84 $ 15.21.4345 Mill Increase $ 46.84 $ 15.21

Less: Exclusion Less: Exclusion ($174.63)($174.63) ($174.63)($174.63)

Net Credit EffectNet Credit Effect ($127.79)($127.79) ($159.42)($159.42)

Budget Process for 2015-2016 Budget Process for 2015-2016

A not to exceed Index A not to exceed Index ((2.3%2.3%)) resolution resolution was previouslywas previously adopted by the Board on adopted by the Board on January 28, 2015 for the 2015-2016 fiscal year.January 28, 2015 for the 2015-2016 fiscal year.

Thus, referendum exceptions Thus, referendum exceptions have not beenhave not been requested and requested and will not bewill not be utilized by utilized by the District for the 2015-2016 fiscal year to further increase the millage rate above the the District for the 2015-2016 fiscal year to further increase the millage rate above the 2.3% Index rate.2.3% Index rate.

The Proposed Final 2015-2016 General Fund Budget will be considered for adoption The Proposed Final 2015-2016 General Fund Budget will be considered for adoption by the Board on May 20, 2015. The Budget will be displayed via the by the Board on May 20, 2015. The Budget will be displayed via the PDE-2028PDE-2028 form form on the District’s website at on the District’s website at www.gatewayk12.orgwww.gatewayk12.org

Various detailed Excel spread sheets will also be displayed on the District’s website Various detailed Excel spread sheets will also be displayed on the District’s website at at www.gatewayk12.orgwww.gatewayk12.org

Thus, the Pre-Act 1 budget timeline will continue to be followed by the District Thus, the Pre-Act 1 budget timeline will continue to be followed by the District through final Budget adoption by the Board on June 24, 2015.through final Budget adoption by the Board on June 24, 2015.

Future Budget Meeting Dates & Future Budget Meeting Dates & Topics for 2015-2016 Topics for 2015-2016

May 21, 2015May 21, 2015: Review of Staffing Requirements : Review of Staffing Requirements & Personnel Budget.& Personnel Budget.

June 1, 2015June 1, 2015: Final Public Hearing.: Final Public Hearing.

(All Budget & Finance Committee Meetings will be held in the High School LGI at 7:00 (All Budget & Finance Committee Meetings will be held in the High School LGI at 7:00 p.m.)p.m.)