Board of Education Budget Discussion 2018-2019 January 2018 Joe Hochreiter Enrique Catalan This year we are including in our budget presentations pictures of our students’ art.

Historical Data

Historical Data: School Budgets Budget vs. Expenses E = Estimated Budget vs. Taxes

Historical Data: Revenues Revenues Over Time By Source Percent Change of Revenues By Source

Historical Data: Fund Balance Maximum allowed by State

Historical Data: Tax Cap

Historical Data: Assessed Valuation

Historical Data: Tax Rates

2018-2019 Preliminary Budget

Revenues and Fund Balance

Revenues Assumptions State aid and BOCES increase 2.5% Other Income stays the same at ~ one million. Sales Tax and Transfers increase slightly to $867,000 and $80,000, respectively PILOTs increase $542,323 as follows: Entergy’s new contract allows for the same increase as the NYS Tax CAP (2%E) - $473,008 RESCO PILOT increases $69,315 based on the 2011 agreement with City of Peekskill and Peekskill School District

Fund Balance Fund Balance decreases $2,246,588 or 60% as follows: Fund balance restricted from debt service decreases from $403,118 to $256,530 Fund balance transfer to Repair Reserve was a one time transfer of $2,200,000 during the 2017-18 school year Assigned fund balance increases from $1,200,000 to $1,300,000

Expenditures

Expenditures Assumptions Maintain same number of programs and attempt, where possible, to reduce staff levels from attritions Reduction in equipment budget district-wide Increase of computer leases by $100k to account for loan to pay for new system under the Smart Bond Increase of approximately $500K in TRS due to a higher employer contribution rate (11% vs. 9.8%) Reduction in debt and interest expense of ~ $180k due to lower capital outlays

Expenditures Assumptions (Cont’d) ERS employer contribution rate decreases 0.25% compared to 2017-18. However, total amount increases by 1.9% due to salary increases Health insurance premium increases 3.75% Increase of $270K in health insurance 661 employees and retirees are insured with the District 329 retirees get Medicare Part B 152 employees get buy-out

Preliminary Budget

Preliminary Budget 2018-2019 Preliminary Budget $78,920,998 to $80,314,454 Budget 2017-18 $79,649,118* Budget Increase/(Decrease) $(728,120) to $665,336 Percent Increase -0.9% to 0.8% Preliminary Tax Levy $42,612,565 Tax Levy 2017-18 $41,750,353 Percent Inc./(Dec.) 2.1% * Includes $2.2m for Repair Reserve

CAP Information NYS CAP 2018-19 (E) 2.0% Hen Hud CAP 2018-19 (E) 2.1% Tax Levy 2018-19 (E) $42.6 m Hen Hud CAP 2017-18 $41,750,353 Hen Hud CAP 2018-19 Inc. $862,212 Hen Hud Percent Inc. 2.1%

Long Term Projections *2017-18 Budget includes $2.2m for Repair Reserve

Revenue Projections 2018-2019

Expense Projections 2017-18 2018-19 % Chg. Administrative $ 4,618,141 $ 4,658,238 0.86% Program $62,981,887 $66,029,581 4.8% Capital* $12,023,090 $ 9,626,635 -19.9% Total $79,623,118 $80,314,454 0.87% * Includes $2.2m for Repair Reserve in 2017-18 Administrative , $4,658,238 6% Program $66,029,581 82% Capital $9,626,635, 12% Let’s start with our expense projections.

Largest Increases/(Decreases) Expenditures TOTAL SALARIES $1,218,066 TEACHER RETIREMENT SYTEM 492,753 HEALTH INSURANCE 269,386 SPECIAL EDUCATION AND RELATED SERVICES 134,316 SOCIAL SECURITY 93,182 DEBT AND INTEREST EXPENSE (181,133)

Thank you for your attention Due to the economic situation that we are going through, we thought that it would be important to begin our budget season with an overview of the world markets.