Presentation to the Mechanicville Board of Education March 21, 2019 2019-20 Revenue Budget Presentation to the Mechanicville Board of Education March 21, 2019

Outline of Presentation Draft Budget Goals Overview of the major components of our revenue sources Update on the Tax Levy Cap Update on State Aid Local Revenue Sources Questions (throughout) Budget Development Next Steps

Draft Budget Goals 2019-20 1. Maintain and enhance high quality instruction and intervention program, faculty and staff 2. Continue to support and improve student social and emotional support systems 3. Establish a sustainable 3 to 5 year financial plan through collaborative, transparent 2019-20 budget development while staying within the Tax Levy Cap

Revenue Sources The predominant sources of revenue for the District is the Tax Levy (49.1%) and NYS Aid (42.7%). The remaining revenue comes from a variety of miscellaneous sources (1.6%) and savings (6.6%). Savings is a combination of appropriated fund balance and reserves. Other sources include: PILOTS, interest income, Medicaid reimbursement, use of facility fees and refunds from BOCES.

Revenue Sources

Historic Information on Tax Levy

Update on the 2019-20 Tax Levy Cap Tax Levy Limit Calculation= +5.2% Levy limit has been submitted to the Office of the State Comptroller as required What rate will we present to public for the 2019-20 Budget Plan? 2% = $13,523,823 3% = $13,656,410 4% = $13,788,996 Cap Max 5.2% = $13,942,791

2019-20 State Aid Projections 2018-19 Actual 2019-20 Gov Bud Difference Difference (%) Foundation $7,248,328 $7,322,516 $74,188 1.0% BOCES $755,396 $806,396 $51,000 6.8% High Cost (SWD) $270,236 $301,516 $31,280 11.6% Private Excess Cost (SWD) $424,469 $432,765 $8,296 2.0% Hardware/Tech $21,650 $21,360 -$290 -1.3% Software, Library, Textbooks $112,511 $111,482 -$1,029 -.9% Transportation $923,875 $991,716 $67,841 7.3% Building $1,481,392 $2,137,830 $656,438 44.4% TOTAL $11,237,857 $12,125,581 $887,724 7.8%

2019-20 Local Revenue Projections Estimated Revenue 2018-19 2019-20 PILOT’s $185,000 Interest $120,000 $100,000 Medicaid $65,000 BOCES Refund $117,000 $90,000 Interfund Transfers (Library Debt) $103,575 $105,200 Miscellaneous $15,000 $3,000 TOTAL LOCAL REVENUE $605,575 $548,200

2019-20 Projected Use of Savings Appropriated Fund Balance and Reserves 2018-19 2019-20 Appropriated Fund Balance *exact amount TBD $1,783,000 $1,783,000* Use of Reserves (Reserve Balance) Reserve for Debt ($299,753) Employee Benefit Accrued Liability ($225,172) ERS Retirement Contribution ($185,070) TOTAL SAVING USE

SUMMARY: 2019-20 Est. 4.0% budget to budget growth = 2019-20 expenditure of $28,093,958 * Assumption based upon contractual obligations/ health care costs/ debt payments *FINAL budget-to-budget increase to be determined with final revenue and expense determinations Revenues Required State Aid $12,125,581 Taxes (Tax Levy Cap 3.2%) $13,682,927 Other $548,200 Savings $1,737,250 TOTAL Revenue $28,093,958

Three Year Projections. assumption: NYS aid at 3% Three Year Projections * assumption: NYS aid at 3% * assumption: Budget to budget growth at 4.0% inclusive of contracts/health care/project debt * assumption: Tax cap at around 3.2% (1) TBD based upon final revenue and expense determinations Expenditures Current 2018-19 Projected 2019-20 (1) 2020-21 2021-22 2022-23 Total Budget $27,013,421 $28,093,958 $29,217,716 $30,386,425 $31,601,882 Revenues State Aid $11,548,186 $12,125,581 $12,489,348 $12,864,029 $13,249,950 Taxes $13,258,650 $13,682,927 $14,120,780 $14,572,645 $15,038,970 Other $423,585 $548,200 Savings Required $1,783,000 $1,737,250 $2,059,388 $2,401,551 $2,764,762 Total Revenue

Questions from the Board of Education 2019-20 Revenue Plan

Next Steps Budget Planning March 21 Budget Goals Revenues April 4 Expenditures April 18 Draft Budget Adopt Budget May 9 Budget Hearing May 21 Budget VOTE