Kenmore-Town of Tonawanda UFSD Budget Budget Work Session March 5, 2013

Tax Levy Threshold Calculation-OSC 3/1/2013 A.Total Real Property Tax Levy for Base Year$71,899,428 B.Tax Base Growth Factor (minimum of 1.0) C.Product of A * B$71,899,428 D.Base Year PILOTS$4,053,987 E.Sum of C + D$75,953,415 F.Base Year Capital Tax Levy$0 G.Difference of E - F$75,953,415 H.Allowable Levy Growth Factor based on CPI (2% for ) I.Product of G * H$77,472,483 J.Budget Year PILOTS$3,972,408 K.Difference of I - J$73,500,075 L.Equals Tax Levy Limit$73,500,075 M.Budget Year Torts and Judgements above 5% of Levy$0 N.Budget Year Capital Tax Levy$0 O.Budget Year Pension Expense above 2% increase in rate$1,362,822 Eligible Prior Year Carryover$1,106,079 P.Tax Levy Limit Adjusted for Transfers + Exclusions (Sum L-O)$75,968,976 Total Tax Levy Percentage Increase5.66%

Tax Levy Threshold  The Allowable Tax Cap Increase Is 5.66%  If all other factors in the tax rate formula remain the same, the added cost to a taxpayer owning a $100,000 house (market value) would be $115  The Tax Levy increase remains the same as it was in the 2/5/13 budget draft (5.40%)

Changes in Budget Since 2/5/13 ItemNotes Structural Deficit Reduction? Amount TRS Rate Reduction from to Y-$140,000 Superintendent Voluntary Reductions Salary below already-taken reduction N-$443 -Flex Plan Contribution N-$1,700 -Health Insurance Contribution In addition to 20% rate of contribution N-$1,234 BOCES Adjustments-Admin Fees Y-$12,000 BOCES Adjustments-Novanet N$10,670 BOCES Adjustments-Computer Asst. Instr. Y-$35,000 BOCES Adjustments-Athletics Y-$780

Changes in Budget Since 2/5/13 ItemNotes Structural Deficit Reduction? Amount Reduce Kindergarten Aides to 4 Hours Y-$161,568 Reduce 2.5 Teacher Aides Y-$38,900 Reduce 2 Special Ed. Aides 1 on 1 aides whose students graduated Y-$31,100 Reduce 1 GroundskeeperAttritionY-$43,000 Reduce 1 Laborer Y-$25,000 Salary Adjustments Y-$177,968

Changes in Budget Since 2/5/13 ItemNotes Structural Deficit Reduction? Amount KTA Retirements: Savings are breakage, not reductions Elementary-2 Y-$90,000 Secondary-3 Y-$135,000 Occupational Education-2 Y-$90,000 Special Education-5 Y-$225,000 Library Media Specialists-3 Y-$135,000 Additional Use of Surplus & FBRevenue OnlyN-$1,000,000

Changes in Budget Since 2/5/13 ItemNotes Structural Deficit Reduction? Amount Salary Reductions-ERS Benefit reduction related to salary reductions Y-$62,011 Salary Reductions-TRS Benefit reduction related to salary reductions Y-$109,688 Salary Reductions-FICA Benefit reduction related to salary reductions Y-$74,554 Salary Reductions-Health Ins. Benefit reduction related to salary reductions Y-$17,200 TOTAL CHANGES SINCE 2/5/13-$2,596,476

Budget Status Draft Budget 2:  Total Expenditures:$149,405,548  Total Revenue:$148,922,344  Current Deficit$ 483,204

Current Budget Status: Deficit Reduction Progress

Use of Fund Balance and Reserves

State Aid Comparison In Millions of Dollars $9.0 Million reduction since

State Aid Comparison In Millions of Dollars Approximately the same aid as

State Budget: Current Outlook  Expect an on-time budget again this year  Anticipated adoption date of March 21 due to Easter and Passover holidays  Legislative changes/proposals are anticipated during the week of March 11

State Aid: Executive Proposal Remaining Questions  Possibility that Building Aid is overstated due to timing of Building Aid  Possibility that Building Aid is overstated due to recalculated interest rates  Possible distribution of “extra” $200 million  Possible option to select a stable rate option for retirement system contributions

Stable Rate Option for Retirement System Contributions  Option to “lock-in” long-term stable rate pension contributions  25-year term  Proposed rates are 12% for the Employees Retirement System (ERS) and 12.5% for the Teachers Retirement System (TRS)  May increase the rate up to 2% every 5 years  May select one system and not the other

Stable Rate Option for Retirement System Contributions  Current rates are set at 20.9% for ERS and 16.25% for TRS  Only a proposal and not a law at this time  The State Comptroller is questioning the legality and actuarial soundness of the proposal since the funds, by law, must be fully funded

Bus Purchase Proposition  Two 65-Passenger Buses$228,046  One Wheelchair Bus$ 69,000  Four 30-Passenger Buses$228,000  Proposition Total$525,046  70 % of this purchase will be aided by New York State  No effect on the budget

Going Forward:  Any further retirements?  Contract settlement?  Determine further reductions in payroll costs for staff not involved with direct instruction to mirror student enrollment decline (2.56%)  Analyze the alternative “Stable Rate Pension Contribution Option” proposed in the Governor’s budget  Analyze the effects of sequestration  Lobby and write to legislators!

Questions?