Preliminary Budget February 2, 2015

Mission Statement The Mission of the Kennett Consolidated School District is to provide a quality education that increases the achievement of every student in order for all to become successful and thoughtful contributors to society.

Expenditures

Total Expenses - $79,062,067

Expenditures Total Expenses - $79,062,067

Budget Development Foundation – Salaries ▪ Collective Bargaining Agreement ▪ Act 93 Agreement ▪ All Other Employees – Act 1 Index to 3% Maximum ▪ New Teaching Positions – High School S.T.E.M. – Special Education - 2 Positions – Middle School Social Studies ▪ Biology Remediation Program ▪ Ready to Learn Summer Tutoring Program ▪ No Retirements ▪ No Furloughs/Outsourcing

Budget Development Foundation – Benefits ▪ Medical/Prescription/Dental Insurance – First Look Projections ▪ Pennsylvania School Employees Retirement Contribution Rate – Certified by PSERS ▪ Vision, Life, and Disability Insurance – Trend Analysis ▪ Worker’s Compensation – SDIC Estimate

Budget Development Foundation – Allocations ▪ Instructional Buildings – 1.9% Increase ▪ Department Allocations – No Increase ▪ Special Education – CCIU Projection ▪ Student Transportation – Krapf Bus Company Agreement ▪ Annual Consumer Price Index or Minimum 2% ▪ Occupational Education – CCIU Tuition Formula ▪ Paraprofessionals – CCRES Agreement ▪ Act 1 Index ▪ Charter School Tuition – Current Enrollment x (Tuition Rates x Act 1 Index) ▪ Debt Service – No Increase

Expenditures DESCRIPTION BUDGET PRELIMINARY BUDGET $ INC (DEC) % INC(DEC) Salaries $ 28,886,644 $ 29,725,454 $ 838, % Employee Benefits 15,832,667 17,298,133 1,465, % Purchased Prof. Svcs. 5,893,175 6,418, , % Purchased Property Svcs. 1,870,288 1,703,047 (167,241) -8.94% Other Contracted Svcs. 12,585,090 13,083, , % Supplies 2,246,872 2,202,820 (44,052) -1.96% Equipment 438, ,473 11, % Other Objects 2,448,364 2,296,196 (152,168) -6.22% Other Financing Uses 5,695,500 5,885, , % TOTAL ALL OBJECTS $ 75,896,790 $ 79,062,067 $ 3,165, %

Expenditure Drivers ▪ Salaries – Existing Salaries ▪ Impact - $676,200 – 2.3% Increase – Three New Teaching Positions ▪ Impact - $162,610 – 0.6% Increase – Includes $10,000 for a Biology Remediation Program ▪ Benefits – Pennsylvania School Employees Retirement System ▪ Impact - $1,351,861 (Net Impact After State Subsidy- $619,375) – Prescription Insurance ▪ Impact - $167,758

Benefits DESCRIPTION BUDGET PRELIMINARY BUDGET $ INC (DEC) % INC(DEC) Life Insurance $ 25,753 $ 26,479 $ % Income Protection 54,651 55,725 1, % Vision 74,838 88,817 13, % Social Security 2,221,182 2,253,623 32, % Retirement 6,213,503 7,565,364 1,351, % Tuition 320, ,000 (75,000)-23.44% Unemployment Comp. 45,781 40,000 (5,781)-12.63% Workers Compensation 162, ,648 3, % Medical 4,726,502 4,709,316 (17,186)-0.36% Dental 483, ,425 (8,244)-1.70% Prescription 1,423,978 1,591, , % Other Benefits 80, % TOTAL ALL BENEFITS $ 15,832,667 $ 17,298,133 $ 1,465, %

PSERS History/Projections Employer Contribution Rates

Act 110 of 2010 PSERS Rate “Collars” ▪ The rate caps limit the amount the pension component of the employer contribution rate can increase over the prior year’s rate as follows: – FY – not more than 3.0% – FY – not more than 3.5% – FY – not more than 4.5% – Thereafter – not more than 4.5% The estimate for prior to the rate caps being established was 33.49% which would have translated to an additional net budgetary increase of $1.1 million.

Expenditure Drivers ▪ Purchased Professional Services – Home and Community Services ▪ Impact – $322,035 ▪ Personal Care Assistants – CCIU Market Place Services/Other ▪ Impact - $141,456 ▪ Special Education Services – Security and Safety Services ▪ Impact - $61,000 ▪ Middle School Security Guard

Expenditure Drivers ▪ Purchased Property Services – Electricity Savings ▪ Impact - ($167,700) ▪ Other Contracted Services – Occupational Education Tuition ▪ Impact - $180,666 – CCRES Paraprofessionals ▪ Impact - $208,445 – Affordable Care Act - $100,000- Core Services - $20,456 – Extended School Year - $36,000- Substitutes - $16,620 – High School Study Hall Monitor - $35,050 – Charter School Tuition ▪ Impact - $114,000

Charter School Tuition ▪ Fast Facts – Regular Education Tuition Rate - $10,345 – Special Education Tuition Rate - $24,175 – Traditional and Cyber Charter Schools ▪ Tuition Rates are Identical – Current Enrollment ▪ Regular Education – 157 ▪ Special Education – 49 – Avon Grove Charter School – Total Budgeted Expense - $2,750,000

Revenues

Total Revenues - $79,062,067

Revenues Total Revenues - $79,062,067

Revenues – State DESCRIPTIONBUDGETPRELIMINARY$ INC (DEC)% INC (DEC) BASIC ED SUBSIDY $5,135,000 $00.00% SPECIAL ED SUBSIDY 1,641, % TRANSPORTATION SUBSIDY 1,440, % RENTAL & SINKING FUND 362, , , % HEALTH SERVICES 86, % PROPERTY TAX REDUCTION ALLOCATION 1,379, % PA ACCOUNTABILITY GRANT 128,446 - (128,446) % READY TO LEARN BLOCK GRANT - 304,781 SOCIAL SECURITY 1,110,591 1,136,616 26, % RETIREMENT 3,106,752 3,839, , % TOTAL REVENUE FROM STATE SOURCES $14,389,170$15,522,423$1,133, %

State Subsidy Increases

State Revenue Drivers ▪ Rental and Sinking Fund – State’s Share of Debt Service Obligation ▪ Impact - $148,000 – PDE’s Moratorium on Plan Con Projects Removed – Bancroft Elementary School Debt Service Issues are Eligible for Reimbursement – CCIU’s Debt Service for TCHS ▪ Impact - $48,000 ▪ Pass-Through Funding ▪ Ready To Learn Grant – Combined with Accountability Block Grant ▪ Impact - $176,335 ▪ Pennsylvania School Employees Retirement System – State’s Obligation to Reimburse 50% of the Certified Contribution Rate ▪ Impact - $732,485 (Net Impact After Mandatory Contribution is an Expense of $619,375)

Revenues – Local DESCRIPTIONBUDGETPRELIMINARY$ INC (DEC)% INC (DEC) CURRENT REAL ESTATE $52,677,984$54,210,008$1,532, % INTERIM REAL ESTATE 400, % PUBLIC UTILITY TAX 73, % EARNED INCOME 3,650,000 3,900, , % TRANSFER TAX 700, % DELINQUENT TAX 1,450,000 1,700, , % EARNINGS ON INVESTMENTS 50, % IDEA 565, % RENTALS/FEES/MISCELLANEOUS 150, % FACILITY USAGE/CONTRIBUTIONS 50, % FUND BALANCE APPROPRIATION 714, % TOTAL REVENUE FROM LOCAL SOURCES $60,480,630$62,512,654$2,032, %

Local Revenue Drivers ▪ Real Estate Tax – Imposition of Increased Millage Rate ▪ Impact - $1,398,343 – Growth of Assessment Base ▪ Impact - $133,681 ▪ Delinquent Real Estate Tax – Liens Filed with Chester County Tax Claim Bureau ▪ Impact - $250,000 ▪ Earned Income Tax – Collections Through Keystone Collection Group ▪ Impact - $250,000

Interim Real Estate Taxes

Transfer Taxes

Earned Income Taxes

Delinquent Taxes

Earnings from Investments

Summary

Preliminary Budget ▪ Proposed Real Estate Tax Increase – 2.67% Increase – Mills ▪ Apply for Act 1 Exceptions – PSERS Contributions ▪ Appropriation of Fund Balance – $714,320 ▪ Begin Process of Budget Deliberations – Finance Committee Meetings ▪ First Monday of Every Month ▪ Next Meeting – March 2, 2015 ▪ Open to the Public ▪ Governor Wolf’s Budget – Proposed Budget Release in March

Historical Millage Rates

Historical Millage Percentage Increase

Average Real Estate Tax

Average Real Estate Tax Increase

Real Estate Tax Rate History

Questions?