gvsd budget pres apr 19 2010 b

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Garnet Valley School District

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GENERAL FUND BUDGET PRESENTATIONFISCAL YEAR 2010 -2011

• April 19, 2010• Thomas E. Delaney• Business Administrator

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• 1 0910 Budget Performance and Projection• 2 Budget to Budget Change Analysis• 3 1011 Revenue Budget• 4 1011 Expenditure Budget• 5 1011 Spec Ed, Maint., Transp.• 6 1011 Capital Equipment Needs / Financing• 7 Debt Svc, Future Debt Svc, Debt Portfolio and

available borrowing capacity

Agenda

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General Fund 0910 Revenue BudgetPerformance to Date & Projections

2007-2008 2008-2009 2009-2010 2009-2010 ProjectionTwo Year One Year Curr. Year Projected (Under) Over

Revenue Summary Prev. Actual Prev. Actual Budget June 30,2010 BudgetRegular Property Tax&DCCC 53,406,543 55,735,762 61,886,108 59,481,542 (2,404,566)Interim Tax 2,332,995 1,564,245 1,050,700 869,000 (181,700)Transfer Tax 1,608,528 505,899 934,940 934,940 0Delinquent Tax 1,129,076 1,378,663 1,142,539 1,270,000 127,461Investment Income 856,415 480,977 313,260 104,420 (208,840)Other Local Revenues 2,594,617 3,171,938 2,088,578 3,534,806 1,446,228Total Local Sources 61,928,174 62,837,484 67,416,125 66,194,708 (1,221,417)State Subsidies 9,459,576 10,525,377 10,995,389 10,971,814 (23,575)Federal Subsidies 607,964 720,291 1,017,090 1,017,090 0Total Revenues 71,995,714 74,083,152 79,428,604 78,183,612 (1,244,992)Use of Fund Balance 1,050,000 (1,050,000)Total Resources 71,995,714 74,083,152 80,478,604 78,183,612 (2,294,992)Summary:Revenue (Under) Budget (1,244,992) (1,244,992)Expense Under (Over) Budget 1,586,303 1,586,303Projected Increase (Decrease) of Fund Balance vs. Budget 341,311 341,311Planned (Use) of Fund Balance per Budget (1,050,000) (1,050,000) 0Net Fund Balance Projected to be (Used) (1,050,000) (708,689) 341,311Beginning of Year Fund Balance 5,736,400 8,157,944 2,421,544End of Year Projected Fund Balance 4,686,400 7,449,255 2,762,855

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• Revenues:• Property Tax Collections FY 0910• Regular property tax collections are projected to be under budget by $2.4

million, of which $1.5 million is made up through offsetting homestead tax relief. Maris Grove did not pay $1.9million in tax, which was liened.

• Interim tax collections are projected to be under budget by $182 thousand.• Transfer tax revenue is projected to meet its budget level. • Delinquent tax should exceed budget by $127 thousand. Since 0910

delinquent taxes were recently liened, the district may receive more delinquent tax revenue, as taxpayers re-pay the county for liened taxes.

• Preliminary interim assessment base growth for April, May, and June is included in the total estimated assessment base. If the data is not finalized prior to the County tax data file generation this June, the district will bill any pending interim month as a full year interim tax, rather than as part of the regular tax billing.


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• Investment Earnings• Earnings through June are projected to fall short

of budgeted revenue by $209,000, which is offset by similar savings in the cost of the district’s variable rate debt service.

• The district has experienced low yields this year on its investments due to the recession. The district is keeping more of its funds in short term investments until yields improve.

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Garnet Valley School DistrictGeneral Fund 0910 Revenue BudgetPerformance to Date & Projections

Daily 0.0982% 0.0227%

7day 0.1118% 0.0247%

3 month .14% 0.16% 0.10%

6 month .21% 0.24% 0.20%

1 year .36% 0.45% 0.65%

2 year 1.03%

5 year 2.58%

10 year 3.87%30 year 4.75%

Notes:

1% = 1/100 = 1.0000%One tenth of 1 pct = 1/1000 = 0.1000%or ten basis points

PSDLAF Liquid

Indicated Yields for Selected Securities

As of Friday April 2, 2010

Treasuries Agencies CDs PSDLAF Max

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• Current Interest Rates• The Federal Reserve Open Market Committee

has set the federal funds rate (the overnight rate that banks lend money to each other) to 0.20%. The rate a year ago was 0.19%.

• US 90 day treasury bills are trading to yield 0.16% (0.14% a year ago).

• The one month LIBOR rate is 0.25% ( 0.50% a year ago).

• Currently, 20 year AAA GO bonds yield 4.15% ( 4.7% a year ago).

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DVRFA Rates

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Garnet Valley School DistrictBudget Performance Projection

Two Year One Year Curr. YearRevenue Summary Prev. Actual Prev. Actual BudgetRegular Property Tax&DCCC 53,406,543 55,735,762 61,886,108Interim Tax 2,332,995 1,564,245 1,050,700Transfer Tax 1,608,528 505,899 934,940Delinquent Tax 1,129,076 1,378,663 1,142,539Investment Income 856,415 480,977 313,260Other Local Revenues 2,594,617 3,171,938 2,088,578Total Local Sources 61,928,174 62,837,484 67,416,125State Subsidies 9,459,576 10,525,377 10,995,389Federal Subsidies 607,964 720,291 1,017,090Total Revenues 71,995,714 74,083,152 79,428,604Use of Fund Balance 1,050,000Total Resources 71,995,714 74,083,152 80,478,604Summary:Revenue (Under) BudgetExpense Under BudgetProjected Increase (Decrease) of Fund BalancePlanned (Use) of Fund Balance

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General Fund 0910 Expenditure BudgetPerformance to Date & Projections

• Projected Significant Over–Expenditures 0910: • DCIU SPED $154,413• DCIU Fair Sh $ 31,343• DCIU EI $ 40,000• ESY $ 49,312• APPS: $214,000• PRRI: $ 54,705• Total $543,773

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Budget Summary2010 - 2011 2009 - 2010 2009 - 2010 Bdgt to Bdgt

Budget Summary Budget Estimate Budget ChangeBeginning Total Fund Balance 7,076,800 8,157,944 5,736,400 1,340,400Revenues: Local 71,544,497 66,194,708 67,416,125 4,128,372 State 10,015,006 10,971,814 10,995,389 (980,383) Federal 1,017,090 1,017,090 1,017,090 0 Fund Balance Applied 1,063,182 1,050,000 13,182Total Revenue Budget 83,639,775 78,183,612 80,478,604 3,161,171Total Available Resources 90,716,575 86,341,556 86,215,004 4,501,571 Fund Balance Applied (1,063,182) 0 (1,050,000) (13,182)Avail Res.net of Fund Bal.Applied 89,653,393 86,341,556 85,165,004 4,488,389Expenditures Special Ed. & PPS 1,437,750 1,890,769 1,365,546 72,204 Instructional cost ctrs 4,759,361 4,864,230 4,961,894 (202,533) Wages 43,237,783 41,237,244 41,237,244 2,000,539 Benefits 17,772,332 15,325,161 16,402,931 1,369,401 Distrwide & supporting cost ctrs 5,215,427 5,174,676 5,227,976 (12,549) Debt svc, transfers and reserves 11,217,122 10,400,221 11,283,013 (65,891)Total Expenditure Budget 83,639,775 78,892,301 80,478,604 3,161,171Total Ending Fund Balance 6,013,618 7,449,255 4,686,400 1,327,218Fund Balance Composition: Designated 0 1,137,875 0 0 Undesignated 6,013,618 6,311,380 4,686,400 1,327,218 Total Fund Balance 6,013,618 7,449,255 4,686,400 1,327,218

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General Fund Proposed Operating Budget:Budget to Budget Changes

Excluding contract wage, benefit, and outside agencies (DCCC andSpec Ed.) all other cost center allocations were held constant or

decreased.

Budget to Budget Increases (Source & Use): Source UseLocal - Regular Property Tax 3,053,143Local - Regular Property Tax - DCCC 14,751Local - All Other (393,784)State (Incl BEF, Transp, FICA PSERS) 487,061Federal 0Special Ed 72,204Other Instruct. (C.S., VoTech, SubSvc, Athl) (202,533)Wages 2,000,539Benefits 1,369,401Transportation 0Maintenance 0Community College 14,751All Other (27,300)Debt Service & Tfrs (including Textbooks) (65,891)Total Budget to Budget Increases 3,161,171 3,161,171

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• Proposed Budget 1011: $83,639,775• Current Budget 0910: $80,478,604

• Increase ($): $ 3,161,171• Increase (%): 3.93%

General Fund 1011 Operating Budget

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• Concord & Chester Heights:• Proposed Mills 1011: 27.470• Current Mills 0910: 26.698• Mill Increase: 0.772 (2.89%)

• Bethel:• Proposed Mills 1011: 27.856• Current Mills 0910: 27.068• Mill Increase: 0.788 (2.91%)

Mills

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• Concord & Chester Heights:• Proposed Tax 1011: $2,747.00• Current Tax 0910: $2,669.80• Tax Increase: $ 77.20 (2.892%)

• Bethel:• Proposed Tax 1011: $2,785.60• Current Tax 0910: $2,706.80• Tax Increase: $ 79.80 (2.9111%)

Tax Per 100,000 Assessment

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• Value of a mill 1011: $2,355,115• Value of a mill 0910: $2,308,856• Increase $ 46,259 (2.00%)

(2.27% in prior year)

• District revenue from growth in mill:• Next Year:• 26.698 x $46,259 = $1,235,023• This Year:• 26.079 x $51,192 = $1,335,036

District Tax Revenue – Growth in Mill

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• Act 72 of 2004 Property Tax Reduction Index:• Act 72 of 2004 originally established the creation of an

annual index for participating districts that limits future property tax rate increases. Compliance with the tax limit index became mandatory for all school districts with the passage of Act 1 of 2006. The property tax index consists of the state SAWWS (Statewide Average Weekly Wage) index and the federal ECI (Employment Cost) index. The 1011 unenhanced, base index for Garnet Valley is 2.9%. The proposed GVSD 1011 tax increase (2.89%) is below the allowed index.

Property Tax Reduction Index

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Revenue Per Student

Budget Budget Budget Budget Budget2010-2011 2009-2010 2008-2009 2007-2008 2006-2007

Students:Projected Students: 4,821 4,836 4,759 4,803 4,588

Revenue Per Student:Property tax revenue per student 13,419 12,746 12,372 11,165 10,792Other local revenue per student 1,642 1,715 1,969 1,920 1,525State revenue per student 2,077 1,970 1,935 1,848 1,796Federal revenue per student 211 210 214 211 147Total revenue per student 17,349 16,642 16,490 15,144 14,260

Property tax revenue per student 77.35% 76.59% 75.03% 73.73% 75.68%Other local revenue per student 9.46% 10.30% 11.94% 12.68% 10.69%State revenue per student 11.97% 11.84% 11.73% 12.20% 12.59%Federal revenue per student 1.22% 1.26% 1.30% 1.39% 1.03%Total revenue per student 100.00% 100.00% 100.00% 100.00% 100.00%

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Revenue Share Per Student

Rev / stdnt $Local $4,215 $8,489 $7,199 $8,886 $13,084 $14,340 $14,309State $1,085 $1,869 $1,649 $1,429 $1,848 $1,935 $1,970Federal $26 $38 $32 $28 $211 $214 $210Totals $5,326 $10,396 $8,880 $10,343 $15,143 $16,489 $16,489

Rev / stdnt % 1986 - 1987 1991 - 1992 1996 - 1997 2001 - 2002 2007 - 2008 2008 - 2009 2009 - 2010Local 79.14% 81.66% 81.07% 85.91% 86.40% 86.97% 86.78%State 20.37% 17.98% 18.57% 13.82% 12.20% 11.74% 11.95%Federal 0.49% 0.37% 0.36% 0.27% 1.39% 1.30% 1.27%Totals 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

2007 - 2008 2008 - 2009 2009 - 20101986 - 1987 1991 - 1992 1996 – 1997 2001 - 2002

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Total District Revenues by Funding Source Graph

Pct Funding Source by Year

0

0.2

0.4

0.6

0.8

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1986 - 1987 1991 - 1992 1996 - 1997 2001 - 2002 2007 - 2008 2008 - 2009 2009 - 2010

Years 1986 to 2010

PctF

unde

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StateLocalFederal

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Total District Expenditures,Cost per Student

Budget Budget Budget Budget BudgetCost per Student 2010 - 2011 2009 - 2010 2008 - 2009 2007 - 2008 2006 - 2007Special Ed. & PPS 1,437,750 1,352,410 1,306,138 1,219,039 998,915Instructional Costs 4,759,361 4,829,199 5,155,529 4,596,423 4,508,490Wages 43,237,783 41,237,244 39,742,947 36,734,139 33,540,178Benefits 17,772,332 16,402,931 15,759,346 14,158,896 11,916,984District-wide Supporting Cost Ctrs 5,215,427 5,175,395 5,216,406 4,705,676 4,669,270Debt Service,Transfers and Reserve 11,217,122 11,481,425 11,290,606 11,317,493 9,789,603Total Budget 83,639,775 80,478,604 78,470,972 72,731,666 65,423,440

Students: 4,821 4,836 4,759 4,803 4,588Cost per Student, Gross 17,349 16,642 16,489 15,143 14,260

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Total District Expenditures,By Object Code - Graph

0809 Expenses

54%

18%

5%

9%0%

14% WagesBenefitsPurch SvcSuppliesFees DuesDebt

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Direct Staff FTE

Staffing 1011 0910 0809 0708Admininstrators 22 22 22 22Administrative support 29 29 28 28Transportation 65 65 65 64Maintenance 47 47 46 45Paraprofessionals 211 211 233 213Secretaries 36 36 33 32Teachers 413 413 405 390Totals 823 823 832 794

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Illustrative Starting Teacher Compensation

New Teacher Cost 1011 0910 0809 0708Salary $44,200 $42,518 $40,664 $39,652Fica, Retire, Life, Disabilty, WC $3,691 $3,363 $3,219 $3,139Medical, etc. $19,204 $17,383 $15,735 $14,794Total Costs $67,095 $63,264 $59,618 $57,585

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• Compensation Benefit Increases:• The proposed budget reflects overall

compensation benefit increases of $1,369,401, reflecting changes in participation, claims experience, coverages, as well as rate increases from benefit carriers.

Benefits

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• State Retirement Provision:• The proposed budget includes a net

increase of $309,845 to fund PSERS. The state mandated gross retirement contribution rate is 4.88% which is 50% reimbursed by the State.

• The district’s net contribution rate is expected to spike in FY 12-13, when its net rate will climb to 14.61%.

PSERS

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Special Education

Budget Budget Budget Budget BudgetSpec Ed 1011 0910 0809 0708 0607Total costs, net of compensation $1,437,750 $1,365,546 $1,306,138 $993,039 $840,663

Spec Ed Students:Remedial 948 948 965 972 966Gifted 398 398 400 393 402Total 1,346 1,346 1,365 1,365 1,368

Net Cost Per Student $1,068 $1,015 $957 $728 $615

Percent of Students in Special EdTotal GVSD Students 4,821 4,836 4,759 4,803 4,588Pct in Spec Ed Programs 27.92% 27.83% 28.68% 28.42% 29.82%

Although the average incremental cost for a special education student is about $1,000, special education costs can exceed $60,000 per student for some students with exceptional needs.

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Maintenance

Budget Budget Budget Budget BudgetMaintenance Dept 1011 0910 0809 0708 0607

400 1,115,338 1,081,363 1,029,890 1,003,300 926,680500 2,500 2,500 2,500 2,500 2,500600 2,136,007 2,169,982 2,224,110 1,941,130 1,994,050

Total 3,253,845 3,253,845 3,256,500 2,946,930 2,923,230Less:Elctr,Gas,Oil (1,779,647) (1,816,422) (1,870,150) (1,576,628) (1,626,150)Net 1,474,198 1,437,423 1,386,350 1,370,302 1,297,080Sq Ft Concord (05/06 & Prior = Pennington School Location) Concord 133,043 133,043 133,043 133,043 133,043 BSES 90,000 90,000 90,000 90,000 90,000 GVES 116,600 116,600 116,600 116,600 116,600 GVMS 175,300 175,300 175,300 175,300 175,300 GVHS 267,422 267,422 267,422 267,422 267,422 Tot Sq Ft 782,365 782,365 782,365 782,365 782,365

Costs / Sq Ft Net of energy 1.88 1.84 1.77 1.75 1.66 Energy 2.27 2.32 2.39 2.02 2.08 Total 4.16 4.16 4.16 3.77 3.74

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Transportation

Transportation Dept. Budget Budget Budget Budget BudgetExcl Insur, Xing Guards 1011 0910 0809 0708 0607

300 2,800 2,800 2,800 2,800 2,800400 61,854 61,854 61,854 58,000 58,000500 11,550 11,550 10,850 4,750 2,250600 439,580 439,580 489,580 480,000 480,250800 250 250 250 250 250

Total Cost 516,034 516,034 565,334 545,800 543,550Less Fuel & Oil 325,300 325,300 375,300 368,500 368,500Net Operating Cost 190,734 190,734 190,034 177,300 175,050

Transportation Dept. Vehicle InventoryBuses 53 53 51 50 50Spares 10 10 12 9 9Wheel Chair 2 2 2 2 2Band Bus 1 1 1 1 1Jeep 1 1 1 1 1Utility Truck 1 1 1 1 1Vans 10 10 10 10 10Total 78 78 78 74 74

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Transportation

Budget Budget Budget Budget Budget1011 0910 0809 0708 0607

Cost per Vehicle per YearOperating Cost 2,445 2,445 2,436 2,396 2,366Fuel&Oil Cost 4,171 4,171 4,812 4,980 4,980Total 6,616 6,616 7,248 7,376 7,345

Cost per Vehicle per Day (180 Days)Operating Cost 13.59 13.59 13.54 13.31 13.14Fuel&Oil Cost 23.17 23.17 26.73 27.67 27.67Total 36.75 36.75 40.27 40.98 40.81

Fleet Miles (0708-latest PDE) 664,919 664,919 664,919 664,919 664,919Average Gallons per Mile 5.54 5.54 5.54 5.54 5.54Gallons Bid / Year 120,000 120,000 120,000 120,000 120,000Average Miles per Vehicle/Yr 8,525 8,525 8,525 8,985 8,985Average Miles per Vehicle/Day 47.36 47.36 47.36 49.92 49.92

Cost per Mile (Excludes Bus Cost Amortization, Insurance, and Driver Costs)Operating Cost 0.29 0.29 0.29 0.27 0.26Fuel&Oil Cost 0.49 0.49 0.56 0.55 0.55

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• Technology $508,482• Transportation $542,716• Buildings $ 76,838• Maintenance $115,000• Athletics $ 6,964

• Total $1,250,000

Capital Equipment - Tentative

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• The total appropriation for all district general obligation, lease appropriation, equipment note debt service and contingency reserve will be $11,217,122. ($11,283,013 currently). Variable rate debt is scheduled at 2.5% (3.5% prior year). Debt service includes financing for capital equipment purchases.

Debt Svc

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Changes in Debt & Debt SvcOutstanding Debt Service Debt Service

Debt Change in Approp AppropIssue 06/30/11 O/S Debt: 0910 1011

GVHS Add'l 2,646,546 0 0 0Rfd 1993 GOB 6,035,000 (1,335,000) 1,720,210 1,722,090Rfd $10M Apr 15 2007 11,738,000 (452,000) 861,170 747,333Rfd 1999 GOB 0 0 1,093,030 0Rfd 1998A & 2004 21,165,000 (435,000) 1,388,323 1,391,723Ffd 2001A GOB 8,585,000 (45,000) 362,139 401,976New Conc & Prjcts 2 6,780,000 (320,000) 628,905 627,125Rfd GOB 2004,2002 36,665,000 (355,000) 1,983,723 1,985,123Rfd GOB 2003 3,950,000 (955,000) 1,092,400Refunding 2000 15,790,000 (780,000) 1,548,158 1,542,958DVRFA Dec 2005 0 0 266,835 0DVRFA Nov 2006 0 (263,000) 281,300 265,740DVRFA Oct 2007 263,000 (254,000) 300,005 273,500DVRFA Nov 2008 646,000 (307,000) 408,195 355,175DVRFA Nov 2009 951,000 (299,000) 378,250DVRFA Nov 2010 New 1,250,000 1,250,000 25,521 18,229Trustee Services - Fees 0 22,000 22,000Vo Tech 176,700 0 33,500 33,500DCCC 101,373 0 0 0Budgetary Reserve 0 360,000 360,000Total Debt, Debt Svc, & Reserve 116,742,619 (4,550,000) 11,283,013 11,217,121

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• 09/10 $11,283,013• 10/11 $11,217,122• 11/12 $11,238,657• 12/13 $11,249,052• 13/14 $11,261,913• 14/15 $11,331,896• 15/16 $11,395,808

Future debt service assumes: (1)DVRFA equipment notes are renewed when maturity is due; (2) variable rate notes incur interest of 2.5%; and,(3) $360,000 is renewed annually as a contingency reserve.

Future Debt Svc

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• Fixed: 1011:87.28%; 0910 87.48%• Variable: 1011:12.72%; 0910 12.52% Next Year:• Total Fixed Debt: $101,894,619• Total Var Debt: $ 14,848,000• Total Debt: $116,742,619 Current Year:• Total Fixed Debt: $106,034,619• Total Var Debt: $ 15,173,000• Total Debt: $121,207,619

Debt Portfolio 1011

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• The district’s current available borrowing capacity is $38,946,395.

• Borrowing capacity changes annually based upon the average of the last three years of general fund revenues and the level of the general obligation issues outstanding.

Avail Borrowing Capacity

gvsd budget pres apr 19 2010 b

Documents

year interim tax

year revenue summary

revenue budget performance

budget expense

delinquent tax revenue

beginning of year fund

expenditure budget

budget level