1. Budget Forum
6:30 P.M., May 25, 2017

2. This Evening’s Agenda
Budget vs Preliminary Budget
Changes to:
Estimated Revenues
Appropriations
Taxes/Homestead/Farmstead
Historic Perspective
Forecasts
Questions -

3. Preliminary Budget Update

4. Targeted Use of Fund Balance
Preliminary Budget – Use of Fund Balance
$ (4,436,538)
Targeted Use of Fund Balance:
Unreserved/Undesignated
$ (4,000,000)
Future Education Initiatives
(207,976)
Total
(4,207,976)
Additional Reductions
$ (228,562)

5. Changes in Estimated Revenues
Local Revenues, Budget page F3
Current Real Estate Taxes - $4,672,600
Earned Income Taxes - $200,000
Realty Transfer Taxes - $350,000
Earnings on Investments - $500,000

6. Changes in Estimated Revenues (continued)
State Revenues, Budget page F-3
Basic Education increase $269,851
Transportation Subsidy decrease $(200,000)
State Share of Employer Retirement Contribution increased by $1,525,831
Federal Revenues (not received through the Intermediate Unit) Budget page F-3
Adjusted to reflect most recent information $1,453,000
ACCESS Funds Reduced by $(312,418) to $900,000

7. 2017-2018 Real Estate Tax Estimated Revenue Calculation, Budget page F-4
2016 Budgeted Assessed Value
$ 1,280,245,370
Less: Act 153 Properties
(3,083,590)
Adjusted Taxable Assessed Value
1,277,161,780
Collection Rate
97.20%
Value of One Mil (Assessed Value X Collection Rate/1,000)
1,241,401
Proposed Millage Rate
120.71
Revenue Prior to Act 153 Property Revenue
149,849,515
Revenue Generated from Act 153 Properties
246,834
Rounding
(4,381)
Total Real Estate Tax Revenue Prior to Tax Relief Reduction
150,091,968
Less: Gaming Revenue
5,525,912
$ ,566,056
2017 Real estate assessed value increased by $8,980,090 to $1,280,245,370 or 0.71%.
This equates to an additional $1,027,973 in current real estate tax revenue without increasing the 2017 mil rate of

8. Preliminary Budget
2.5% Property Tax Mill Increase(Act 1 Index = 2.50%) :
mils to or 2.94 mils
Median Homestead Assessed Value of 38,520 equate to $ increase.
Assessed Value
Increase in Taxes
$ ,000 $
30,000
88.20
38,520
113.25
40,000
117.60
50,000
147.00
60,000
176.40
70,000
205.80
80,000
235.20
90,000
264.60
100,000
294.00

9. 2017-2018 Homestead Farmstead Rebate
State Allocation
$5,584,992.63
Remaining Funds,
54,809.44
Total Funds Available
$5,639,802.07
Homesteads
20,016
Farmsteads 47
Total
20,063
Reduction for Each Homestead and Farmstead
$281.10
Fiscal Year
Homestead/Farmstead Reduction
Annual Increase (Decrease)
274.71
252.39
(22.32)
279.03
26.64
245.27
(33.76)
281.10
35.83
249.36
(31.74)
259.60
10.24
264.75
5.15
273.82
9.07
7.28

10. Changes in Appropriations
Budget
Preliminary Budget
Variance
Salaries
FTE
Amount
% Change
CREA
839.60
$ ,422,816
843.60
$ ,231,245
4.00
$ (191,571)
-0.24%
CRESPA
447.40
15,427,220
454.73
15,963,497
7.33
536,277
3.48%
Administration
44.00
6,097,303
45.00
6,282,754
1.00
185,451
3.04%
Clerical
6.40
419,891
415,726 -
(4,165)
-0.99%
Other
5,379,563
5,772,573
393,010
7.31%
Total Salaries
1,337.40
108,746,793
1,349.73
109,665,795
12.33
919,002
0.85%
Employee Benefits
Healthcare
21,495,028
23,378,480
1,883,452
8.76%
Dental
1,601,592
1,560,945
(40,647)
-2.54%
Vision
104,442
108,741
4,299
4.12%
403 (b) Contributions
116,358
100,000
(16,358)
-14.06%
Flex Contributions
138,500
138,000
(500)
-0.36%
Life Insurance
162,188
161,402
(786)
-0.48%
Disability
100,389
130,302
29,913
29.80%
Social Security
8,013,364
8,024,204
10,840
0.14%
Retirement
32,590,763
35,648,563
3,057,800
9.38%
Tuition Reimbursement
0.00%
Unemployment
271,344
274,044
2,700
1.00%
Worker's Compensation
543,698
548,264
4,566
0.84%
Total Employee Benefits
65,237,666
70,172,945
4,935,279
7.57%
Total Salaries and Benefits
173,984,459
179,838,740
5,854,281
3.36%
Objects
52,557,477
53,926,603
1,369,126
2.61%
Total Budget
$226,541,936
$233,765,343
$7,223,407
3.19%

11. Preliminary Budget Update – Selected 300-900 Objects

12. Why must we increase the mil rate the full 2.50%?
Maintaining the educational program of the District at the levels.
Slow the reduction of our existing fund balance.
Continue to fund the annual capital expenditures of the District at $3 million annually.
Financial uncertainty at the state level
Elimination of Property Taxes
State budget deficit without any long-term solutions

13. Beginning Fund Balance Increase (Decrease) In Fund Balance
Financial History
Year
Beginning Fund Balance
Revenues
Expenditures
Fund Transfers
Increase (Decrease) In Fund Balance
Ending Fund Balance
$26,376,726
$ 195,837,757
$ 194,277,845
$1,559,912
$27,936,638
27,936,638
195,576,225
194,083,327
1,492,898
29,429,536
202,011,272
199,329,334
4,009,054
(1)
(1,327,116)
28,102,420
207,988,082
204,111,975
2,931,534
(2)
944,573
29,046,993
215,779,441
209,730,036
5,531,453
(3)
517,952
29,564,945
216,348,750
216,886,321
4,000,000
(4)
(4,537,571)
25,027,374
Transfer includes $440,000 contribution to bond refunding.
Transfer includes $600,000 contribution to bond refunding.
Transfer includes $650,000 contribution to bond refunding and $1,000,000 transfer to self-insurance fund.
Transfer includes $1,000,000 contribution to bond refunding.
Year
Mil Rate
Increase (Decrease)
% Change
110.68
0.00
0.00%
112.56
1.88
1.70%
114.02
1.46
1.30%
114.72
0.70
0.61%
115.01
0.29
0.25%
117.77
2.76
2.40%

14. Where have we been?
We faced financial challenges in the and Budgets.
$14.2 Million and $14.0 Million Deficits respectively.
Staff Reductions:
Other savings affecting staffing:
Aramark contract reduction $468,000 – Staff duties are adjusted
Total
Administrative
(4.00)
(1.00)
(5.00)
Professional
(42.00)
(15.70)
(57.70)
Support
(19.00)
(23.44)
(42.44)
(65.00)
(40.14)
(105.14)

15. Where have we been? (Continued)
District budget increased from $199.3 million in to $226.5 million in An increase of $27. 2 million or 13.68% over the seven years.
$23.8 million of that increase was retirement. The employer’s contribution rate went from 8.65% to 30.03%
The additional $3.4 million included all other cost centers, including salaries, healthcare and other employee benefits, operations of our facilities, student transportation, instructional materials and debt service.

16. Summary of Financial Forecast
Year
Description/ Closing
Begin
Fund Balance
Revenues
Expenditures
Fund Transfers
Increase (Decrease) In Fund Balance
Ending Fund Balance
% Tax Increase
Budget
25,027,374
222,205,072
226,541,936
3,000,000
(7,336,864)
17,690,510
2.40%
Projected
224,427,123
224,277,754
(2,850,631)
22,176,743
231,303,891
31,237,936
(2,934,045)
19,242,698
2.50%
No Closings
237,136,368
236,627,840
(2,491,472)
16,751,226
Middle School
236,944,428
234,879,104
(934,676)
18,308,022
Middle School and Elementary
236,864,955
234,182,502
(317,547)
18,925,151

17. Next Steps in the Approval Process
June 1 Finance Committee Meeting
Discuss changes to the Final Budget
Feedback from Board Members
June 15 Board Meeting
Adoption of Final Budget

18. Questions - budget@crsd.org

19. Middle School Project Financing

20. Capital Planning – Middle School Projects
Over the past six years, we have been managing our existing debt to minimize the budgetary impact of the large capital expenditures needed at the middle school level.
Refinanced bond issues when appropriate and utilized the savings to reduce our future debt costs; over $15.5 million in reduced debt service;
Contributed financially from the general fund to reduce the amount of the refunding bond issues to further reduce future debt service.
Maintain a “AA” credit rating and strong name in the municipal bond market to reduce the cost of our debt;
Took advantage of the historically low interest rates in the municipal bond market.
Thus we are able to finance the $105 million middle school projects and only increase taxes by under 0.75 mils over three years.
We have also been able to structure our debt to allow for future borrowing additional capital needs.