1. GENERAL FUND BUDGET PRESENTATION FISCAL YEAR 2014-2015 April 22, 2014 John T. Scully Business Administrator

2. Act 1 –Overview and 2014-15Limit 2014-15 Budget Challenges 2013-14 Budget Performance and Projection Budget to Budget Change Analysis 2014-15 Revenue Budget 2014-15 Expenditure Budget 2014-15 Debt Service 2014-15 Other Funds Agenda

3. Act 1 –Overview and 2014-15Limit Act 1 of 2006 (Mandated Tax Increase Limit): Compliance with the tax limit index became mandatory for all school districts in 2006 The Act 1 index consists of the state SAWW (Statewide Average Weekly Wage) index and the federal ECI (Employment Cost) index The 13-14 base index for Garnet Valley is 2.1%. The proposed GVSD 13-14 tax increase (2.45%) is above the index. GVSD has not submitted to PDE for Act 1 tax exceptions and the Administration must continue to look for additional revenues or sustainable budget reductions to get us at or below the Act 1 index prior to final adoption

4. Budget to Budget Change Analysis Proposed Budget 2014-15:$93,184,878 Current Budget 2013-14:$87,454,320 Expenditure increase ($)$ 5,730,558 Expenditure increase (%)6.5%

5. 2014-15 Budget Challenges Residential and Commercial tax Appeals Limited tax base growth ($6,788,482) – amounts to approx. $198,000 in tax revenue Low interest income returns Level funding from the State Level funding from the Federal Government

6. 2014-15 Budget Challenges Increases in mandated expenditures – Special Education – State Retirement (PSERS) – Student Transportation Increases in other expenditures – Salaries – Employee Benefits – Textbook Adoptions – Utilities

7. General Fund Operating Budget (summary) 2014-152013-242013-14Budget to ProposedCurrent Year Budget Proposed Budget SummaryBudgetProjectionBudgetChange Beginning Total Fund Balance10,350,9398,777,5477,982,1002,368,839 Revenues: Local76,226,97673,059,68472,520,2733,706,703 State13,064,54014,352,89513,269,988(205,448) Federal1,608,874 1,664,059(55,185) Fund Balance Applied0 Total Revenue Budget90,900,39089,021,45387,454,3203,446,070 Total Available Resources101,251,32997,799,00095,436,4205,814,909 Fund Balance Applied0 Avail Res.net of Fund Bal.Applied101,251,32997,799,00095,436,4205,814,909 Total Expenditure Budget93,184,87887,448,06187,454,3205,730,558 Total Ending Fund Balance8,066,45110,350,9397,982,10084,351 Fund Balance Composition:0 Committed2,410,1293,610,129 (1,200,000) Uncommitted5,656,3226,740,8104,371,9711,284,351 Total Fund Balance8,066,45110,350,9397,982,10084,351

8. Budget to Budget Change Analysis 14-15 VS. BUDGETANTICIPATEDPROPOSED13-14 BUDGET DESCRIPTION2013-14 2014-15INC/(DEC) EXPENSES: 100SALARIES 44,225,192.00 44,075,192.00 45,379,569.35 1,154,377.35 200BENEFITS 21,835,539.00 21,029,280.00 24,583,400.00 2,747,861.00 300PROFESSIONAL AND TECHNICAL SERVICES 2,146,440.00 2,712,677.06 566,237.06 400PURCHASED PROPERTY SERVICES 1,981,023.00 1,956,166.00 (24,857.00) 500OTHER PURCHASED SERVICES 2,102,514.00 2,399,199.00 296,685.00 600SUPPLIES 3,732,077.00 4,307,687.33 575,610.33 700PROPERTY - - 250,000.00 800OTHER OBJECTS 4,881,535.00 4,831,535.00 4,397,179.75 (484,355.25) 900OTHER FINANCING USES 6,550,000.00 7,550,000.00 7,199,000.00 649,000.00 TOTAL 87,454,320.00 87,448,061.00 93,184,878.49 5,730,558.49

9. Budget to Budget Change Analysis Wages & Benefits:Chng %Change $Total 14-15 13-1412-13 Wages: Administration1.85%$92,107$5,058,623$4,966,516$4,985,092 Transportation-3.81%($82,654)$2,084,337$2,166,991$2,037,736 Maintenance2.63%$53,207$2,074,568$2,021,361$1,995,030 Paraprofessionals2.44%$120,375$5,061,529$4,941,154$4,576,625 Secretaries & clerks1.40%$17,366$1,253,519$1,236,153$1,103,701 Teachers3.30%$953,978$29,846,995$28,893,017$28,208,917 Total Wages Change2.61%$1,154,377$45,379,569$44,225,192$42,907,101 Benefits: Medical3.84%$325,505$8,794,450$8,468,945$8,502,484 Dental-4.63%($26,753)$551,250$578,003$580,000 Prescription10.33%$189,669$2,025,579$1,835,910$1,794,470 Cost Share103.36%($457,428)($900,000)($442,572)($585,000) FICA1.33%$43,987$3,339,557$3,295,570$3,230,575 PSERS35.03%$2,481,088$9,564,248$7,083,160$5,077,553 Life insurance2.83%$1,900$69,000$67,100$65,910 Disability0.25%$300$120,000$119,700$119,330 Tuition0.00%$0$353,080 Unemployment comp0.00%$0$98,236 $171,836 Workers comp50.10%$189,593$568,000$378,407$355,231 Total Benefits Change12.58%$2,747,861$24,583,400$21,835,539$19,665,469 Total Wages & Benefits5.91%$3,902,238$69,962,969$66,060,731$62,572,570

10. Budget to Budget Change Analysis Employee Benefits Budget 2014-15 2012-13 Actual 2013-14 Budget 2013-14 Projection 2014-15 Budget % Inc/(Dec) Medical 6,714,364 7,784,694 7,480,747 8,160,4659.09% Prescription 2,119,447 1,835,910 2,027,57910.44% Dental 527,823 578,003 525,000 551,2505.00% Vision 92,158 94,881 103,000 115,54512.18% Employee Cost Share (585,000) (442,572) (900,000) (985,500)9.50% Life 37,261 67,100 69,0002.83% Tuition reimbursement 268,189 353,080 0.00% Disability 113,294 119,700 120,0000.25% Workers/Unemp Compensation 490,052 476,643 666,23639.78% Social Security 3,219,769 3,295,570 3,339,5571.33% Retirement 5,794,635 7,672,530 10,166,18832.50% Total 18,791,993 21,835,539 21,029,280 24,583,40016.90%

11. Budget to Budget Change Analysis PSERS History Budget 2014-15 School Year Net GVSD PSERS Cost Net Annual Increase / (Decrease) Gross Contribution Rate Net Contribution Rate 2006-07$1,023,972 6.460%3.230% 2007-08$1,237,111$213,1397.130%3.570% 2008-09$1,338,546$101,4354.760%2.380% 2009-10$1,390,672$52,1254.780%2.390% 2010-11$1,485,932$95,2618.220%4.110% 2011-12$1,759,091$368,4198.650%4.330% 2012-13$2,697,373$938,28312.360%6.180% 2013-14$3,719,480$1,022,10716.930%8.470% 2014-15$4,782,124$1,062,64421.400%10.700%

12. Garnet Valley School District Millage Analysis Assessed Value 14-15: $2,451,958,997 Assessed Value 13-14: $2,445,170,515 Increase in Assessed Value $ 6,788,482 (2.70%) District revenue from change in assessed value: 29.2006 x $6,788,482 = $198,227 increase

13. Garnet Valley School District Millage Analysis Concord & Chester Heights: – Proposed Mills 14-15: 29.9161 – Current Mills 13-14: 29.2006 – Mill Rate Increase: 0.7155 (2.45%) Bethel: – Proposed Mills 14-15: 29.9161 – Additional Mills DCCC:.3500 – Total Proposed Mills:30.2661 – Current Mills 13-14: 29.5415 – Mill Rate Increase: 0.7246 (2.45%)

14. Garnet Valley School District 2014-15 Budget Millage Analysis Concord & Chester Heights: – Proposed Mills 2014-15: 29.9161 – Current Mills 2013-14: 29.2006 – Mill Rate Increase: 0.7155 (2.45%) Bethel: – Proposed Mills 2014-15: 29.9161 – Additional Mills DCCC:.3500 – Total Proposed Mills: 30.2661 – Current Mills 13-14: 29.5415 – Mill Rate Increase: 0.7246 (2.45%)

15. Garnet Valley School District 2014-15 Budget Capital Projects Fund Beginning Fund Balance 7/1/2014 $ 525,000.00 Revenues: Tranfers From Other Funds $ - Bond Proceeds $ - Total Additions $ - Expenses: Gesa Project $ 315,000.00 Maintenance Equipment $ - Maintenance Projects $ - Total Expenses $ (315,000.00) Ending Fund Balance 6/30/2015 $ 210,000.00

16. Garnet Valley School District 2014-15 Budget Capital Reserve Fund Beginning Fund Balance 7/1/2014 $ 2,700,000.00 Revenues: Tranfers From Other Funds $ - Bond Proceeds $ 1,250,000.00 Total Additions $ 1,250,000.00 Expenses: Technology Equipment $ 712,800.00 School Buses $ 392,000.00 Maintenance Equipment $ 145,200.00 Financial - H/R Software $ 225,000.00 Total Expenses $ (1,475,000.00) Ending Fund Balance 6/30/2015 $ 2,475,000.00

17. Garnet Valley School District 2014-15 Budget Food Service Fund Beginning Fund Balance 7/1/2014 $ 88,298.00 Revenues: Breakfast/Lunch Sales $ 1,594,186.00 NSLP Subsidy $ 277,480.00 Catering Sales $ 55,040.00 Total Additions $ 1,926,706.00 Expenses: Cost of Food $ 862,044.00 Vendor Rebates $ (125,277.00) Salaries & Benefits $ 928,495.00 Direct Expenses $ 110,649.00 Management/Administrative Fee $ 150,795.00 Total Expenses $ (1,926,706.00) Ending Fund Balance 6/30/2015 $ 88,298.00