OVERVIEW OF FINANCIAL STATUS Presented To: Harpursville CSD Presented On: December 12, 2018 Presented By: Kathy Blackman, C.P.A. Controller, Central Business Office

Tonight’s Topics 2018-19 Projected Performance Long Range Plan Fiscal Stress Calculation Questions Harpursville Central School District

Projection of 2018-2019 2018-2019 Projected Revenues $19,551,538 Projected Expenditures $19,702,766 Projected Operating Surplus/(Deficit) ($151,228) Projected Gain (Loss) in Total Fund Balance Note: This projection is expected to be refined as additional information on such things as staffing changes, boces services, tuition costs and utilities become available. Harpursville Central School District

Projected 18-19 performance Factors that have contributed to the 2018-19 projection: Revenue Additional Revenue for BOCES classrooms Higher than anticipated Excess Cost Aid (Special Education Placements) Increased BOCES surplus Expenditures Savings on Special Education placements, including open positions related to special education services Capital Project The additional revenue & reduced expenditures have enabled the district to allocate additional resources to the upcoming capital project. This will reduce the overall cost to the taxpayers over the entire life of the project. Harpursville Central School District

Projected Status of Fund Balance 6/30/2019 2017-18 2018-19 Projected Increase/ (Decrease) Restricted Reserves $2,820,529 $2,533,098 ($287,431) Appropriated FB $500,000 -0- Encumbrances $815 $0 ($815) Unassigned FB $777,226 $914,244 $137,018 TOTAL FUND BALANCE $4,098,570 $3,947,342 ($151,228) Harpursville Central School District

Assumptions in the long range projection Revenues: Foundation Aid would increase 2% for each year Expenditure Driven State Aid (excluding Building Aid) would increase between 2%- 5% each year The tax levy is projected at an estimated amount each year Harpursville Central School District

Assumptions in the long range projection Expenditures: Staff is based on current staff of record plus 2 positions (1 instructional + 1 non-instructional) Health Insurance is projected at an estimated 11.94% increase in 19-20 and then a change each year thereafter (to 12%, 11%, and 10% respectively). Teacher Retirement System (TRS) costs are projected to drop for 19-20 then moderately increase, while the Employee Retirement System (ERS) costs are projected to be relatively flat ERS rates are assumed to increase, but at the same time, more employees are being hired at the Tier 6 level which is a lower cost rate. Harpursville Central School District

Long Range Projection 2018-19 2019-20 2020-21 2021-22 2022-23 Tax Levy % 3.08% 3.00%* 3.25% 4.12% 2.56% State Aid % 3.54% 2.00% Beginning Fund Balance $4,098,570 $3,947,342 $4,048,702 $3,545,878 $2,415,978 Operating Surplus/ (Deficit) $(151,228) $101,360 $(502,824) $(1,129,900) $(1,767,564) Ending Fund Balance $648,414 *projected tax levy limit in 2019-20 is 5.45% Harpursville Central School District

Long Range Projection Average expenditures are projected to be 4.7%, while average revenues over the same period are projected to be 2.82%. Harpursville Central School District

Revenue Anticipation Notes (RANS) Borrowed $2M – July 2017 Borrowed $1M – July 2018 RAN is due in March 2019 No additional borrowing will be needed Harpursville Central School District

Fiscal Monitoring System Office of State Comptroller Budgetary Solvency Perspective Based on a 100-point scale Financial Indicators Fiscal Score Designation Provides a score to reflect the ability of a school district to generate enough revenues to meet expenditures Harpursville Central School District

Scoring classifications Significant fiscal distress 65% 100% Moderate fiscal distress 45% 64.9% Susceptible fiscal distress 25% 44.9% No designation 0% 24.9% Harpursville Central School District

Reliance on Short Term Debt Financial indicators Fund Balance Unassigned Total Operating Deficit Each of the past three years Cash Cash Ratio Cash % of Monthly Expenditures Reliance on Short Term Debt % Change in Short-term Debt Issued Harpursville Central School District

Fund Balance Year-end Fund Balance - Weighted 50% Weighting 0.0% Unassigned Fund Balance/ Expenditures 4.1% (Prior year 3.2%) Zero Points (Prior year 0 points) Total Fund Balance/Expenditures 21.7% (Prior year 19.2%) Zero Points (Prior year 0 points) Weighting 0.0% Harpursville Central School District

Revenue - Expenditures/ Expenditures Operating deficits Operating Deficits - Weighted 20% Revenue - Expenditures/ Expenditures 2015-16 -8% 1 Point 2016-17 -3.1% 2017-18 1.7% 0 points Weighting 16.4% Harpursville Central School District

Operating deficits Harpursville Central School District

Cash indicators Cash Indicators - Weighted 20% Weighting 3.3% Cash + Investments/ Current Liabilities Cash % of Monthly Expenditures Cash Ratio 100.0% (Prior year 49.8%) 0 Points (Prior year 3 points) (Cash + Investments)/(Expenditures/12 months) 71.5% (Prior year 28.4%) 3.3 Points (Prior year 10 points) Weighting 3.3% Harpursville Central School District

Reliance on Short-term Cash flow Debt Use of Short Term Debt - Weighted 10% Short term debt issued current year – prior year/ Short term debt issued prior year Short term debt issuance 0.0% (Prior year 100.00%) 0 Points (Prior year 10 points) Weighting 10.0% Harpursville Central School District

Harpursville Classification: No Designation Summary Indicator Calculation 2017-18 2016-17 2015-16 Calculation 2014-15 Fund Balance 0.0% Operating Deficit 13.4% 20.0% Cash 3.3% 16.7% Short-term Debt 10.0% TOTAL 50.0% 36.7% Harpursville Classification: No Designation Harpursville Central School District

Questions