1. Preliminary Budget
January 23, 2017

2. Budget Time Line
February 3, 2017 Deadline for Board to give public notice of intent to adopt preliminary budget (10 days in advance of adoption)
February 6, 2017 Finance Committee Meeting - MDLKC, 7:00 PM
Long Range Plan for Facilities
February 13, 2017 Review and adopt the preliminary budget and tentative tax rates
February 19, 2017 Submit proposed tax increase to PDE
March 6, 2017 Finance Committee Meeting – MDLKC, 7:00 PM
Commonwealth Budget
State Revenues Revised
Long Range Plan for Technology

3. 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.

4. Summary

5. Preliminary Budget Proposed Real Estate Tax Increase 2.79% Increase
Mills
Appropriation of Fund Balance
$714,330
Begin Process of Budget Deliberations
Finance Committee Meetings
First Monday of Every Month
Next Meeting – February 6, 2017
Open to the Public
Governor’s Commonwealth Budget
Presentation – February 7, 2017
Modified Act 1 Index of 2.9%
No referendum exceptions are required

6. Proposed Tax Increase

7. Average Residential Tax Increase

8. Expenditures

9. Expenditures
Total Expenses - $84,510,237

10. Expenditures
Total Expenses - $84,510,237

11. Budget Development Foundation
Salaries
Collective Bargaining Agreement – Kennett Education Association
Act 93 Agreement – Expires June 30, 2017
All Other Employees – Act 1 Index to 3% Maximum
New Positions
TBA
No Dedicated Funds
No Retirements
No Furloughs/Outsourcing

12. Budget Development Foundation
Benefits
Medical/Prescription/Dental Insurance
First Look Projections
Medical – 1.69%
Prescription – 1.45%
Pennsylvania School Employees Retirement Contribution Rate
Certified by PSERS – 32.57%
Increase of 9%
Vision, Life, and Disability Insurance
Trend Analysis
Worker’s Compensation
SDIC Estimate

13. Budget Development Foundation
Allocations
Instructional Buildings
2.5% Increase
Department Allocations
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 Change

14. Expenditures DESCRIPTION 2016-17 BUDGET 2017-18 PRELIMINARY
$ INC (DEC)
% INC (DEC)
Salaries
$ 29,835,752
$ 30,752,303
$ ,551
3.07%
Employee Benefits
19,343,825
20,601,843
1,258,018
6.50%
Purchased Prof. Svcs.
7,171,363
7,388,159
216,796
3.02%
Purchased Property Svcs.
1,822,913
1,869,016
46,103
2.53%
Other Contracted Svcs.
13,550,811
13,815,793
264,982
1.96%
Supplies
2,045,177
1,974,782
(70,395)
-3.44%
Equipment
493,570
580,096
86,526
17.53%
Other Objects
1,854,953
1,738,245
(116,708)
-6.29%
Other Financing Uses
5,675,000
5,790,000
115,000
2.03%
TOTAL EXPENDITURES
$ 81,793,364
$ 84,510,237
$ 2,716,873
3.32%

15. Expenditure Drivers Salaries Benefits
Existing Salaries
Impact - $916,551
3.07% Increase
No New Positions
No Retirements
Benefits
Pennsylvania School Employees Retirement System
Impact - $948,409 (Net Impact After State Subsidy- $474,204)
10.55%
Medical
Impact - $141,751
2.76%
Prescription Insurance
Impact - $62,149
3.41%

16. Benefits DESCRIPTION 2016-17 BUDGET 2017-18 PRELIMINARY $ INC (DEC)
Life Insurance
$ ,646
$ ,354 $
2.66%
Income Protection
60,021
61,651
$ ,630
2.72%
Vision
77,694
82,580
$ ,886
6.29%
Social Security
2,249,015
2,291,543
$ ,528
1.89%
Retirement
8,987,471
9,935,880
$ ,409
10.55%
Tuition
220,000 $
0.00%
Unemployment Comp.
38,868
38,319
$ (549)
-1.41%
Workers Compensation
190,011
192,481
$ ,470
1.30%
Medical
5,137,114
5,278,865
$ ,751
2.76%
Dental
455,150
509,186
$ ,036
11.87%
Prescription
1,821,835
1,883,984
$ ,149
3.41%
Other Benefits
80,000
TOTAL ALL BENEFITS
$ 19,343,825
$ 20,601,843
$ 1,258,018
6.50%

17. PSERS History/Projections Employer Contribution Rates

18. PSERS History/Projections Employer Contribution Rates

19. Expenditure Drivers Purchased Professional Services
CCIU Marketplace Services/Other
Special Education Services
Impact - $105,531
Curriculum Professional Development
Math in Focus
Impact – $28,650
Purchased Property Services
Capital Improvement
Impact - $25,000
Other Contracted Services
Charter School Tuition
Impact - $250,000
Equipment
Student Technology
Impact - $50,000
Student Transportation
Special Education Replacement Vehicle

20. Charter School Tuition
Fast Facts
Regular Education Tuition Rate - $11,575
Special Education Tuition Rate - $27,737
Traditional and Cyber Charter Schools
Tuition Rates are Identical
Current Enrollment
Regular Education – 165
Special Education – 46
Avon Grove Charter School
Total Budgeted Expense - $3,250,000

21. Revenues

22. Revenues
Total Revenues - $84,510,237

23. Revenues
Total Revenues - $84,510,237

24. Revenues – State 2016-17 2017-18 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
BASIC ED SUBSIDY
$5,591,325
$5,553,319
($38,006)
-0.68%
SPECIAL ED SUBSIDY
1,787,505 -
0.00%
TRANSPORTATION SUBSIDY
1,440,000
1,500,000
60,000
4.17%
RENTAL & SINKING FUND
560,408
HEALTH SERVICES
86,000
PROPERTY TAX REDUCTION ALLOCATION
1,457,389
PA ACCOUNTABILITY GRANT
READY TO LEARN BLOCK GRANT
304,781
400,617
95,836
31.44%
SOCIAL SECURITY
1,141,898
1,145,771
3,873
0.34%
RETIREMENT
4,524,093
4,915,690
391,597
8.66%
TOTAL REVENUE FROM STATE SOURCES
$16,893,399
$17,406,699
$513,300
3.04%

25. State Revenue Drivers Read to Learn Basic Education
Adjusted to Allocation
Impact – ($38,006)
Student Transportation
Impact - $60,000
Read to Learn
Impact - $95,836
Pennsylvania School Employees Retirement System
State’s Obligation to Reimburse 50% of the Certified Contribution Rate
Impact - $391,597

26. Revenues – Local 2016-17 2017-18 DESCRIPTION BUDGET PRELIMINARY
$ INC (DEC)
% INC (DEC)
CURRENT REAL ESTATE
$55,516,376
$57,168,052
$1,651,676
2.98%
INTERIM REAL ESTATE
400,000 -
0.00%
PUBLIC UTILITY TAX
73,000
EARNED INCOME
4,000,000
4,200,000
200,000
5.00%
TRANSFER TAX
725,000
800,000
75,000
10.34%
DELINQUENT TAX
1,725,000
1,775,000
50,000
2.90%
EARNINGS ON INVESTMENTS
50,142
80,000
29,858
59.55%
IDEA
565,257
RENTALS/CONTRIBUTIONS/MISC. REVENUE
285,181
300,000
14,819
5.20%
FUND BALANCE APPROPRIATION
714,330
TOTAL REVENUE FROM LOCAL SOURCES
$64,054,286
$66,075,639
$2,021,353
3.16%

27. Local Revenue Drivers Real Estate Tax Earned Income Tax Transfer Tax
Imposition of Increased Millage Rate
Impact - $1,535,375
Growth of Assessment Base
Impact - $116,301
Earned Income Tax
Collections Through Keystone Collections Group
Impact - $200,000
Transfer Tax
Residential Sales
Impact - $75,000
Delinquent Real Estate Tax
Liens Filed with Chester County Tax Claim Bureau
Impact - $50,000
Interest Earnings
Investments
Impact - $29,858

28. History and Forecast of the Act 1 Index
Qualified for Weighted Act 1 Index – Effective

29. Maximum Tax Increase Calculation
Percentage
Mills
Modified Act 1 Index
2.9%
Allowable Exceptions
Expenditure Value
Retirement Contributions
$ ,979
.1624
Special Education Expenditures
$ ,589
.0218
Maximum Tax Increase with Exceptions
3.5%

30. Chester County School Districts Comparison of Assessment Growth
Percent Change
Assessment Growth
Valuation at Kennett's Millage Rate
Avon Grove
1,732,036,108
1,906,176,326
10.1%
174,140,218
$ ,091,999
Coatesville
2,711,310,056
2,917,158,576
7.6%
205,848,520
$ ,019,175
Downingtown
4,835,004,847
5,418,944,499
12.1%
583,939,652
$ ,074,863
Kennett
2,030,291,064
2,021,416,348
-0.4%
-8,874,716
$ (259,504)
Octorara
636,320,890
679,171,222
6.7%
42,850,332
$ ,252,978
Owen J Roberts
2,218,009,018
2,345,759,905
5.8%
127,750,887
$ ,735,538
Oxford
1,093,224,724
1,146,601,339
4.9%
53,376,615
$ ,560,775
Phoenixville
1,919,191,624
2,046,811,154
6.6%
127,619,530
$ ,731,697
Twin Valley
611,805,451
673,450,210
61,644,759
$ ,802,542
Unionville Chadds Ford
1,860,335,210
1,942,481,910
4.4%
82,146,700
$ ,402,035
West Chester
7,530,971,464
7,824,511,310
3.9%
293,539,846
$ ,583,340
Great Valley
3,346,634,677
3,643,060,581
8.9%
296,425,904
$ ,667,731
Tredyffrin Easttown
4,791,973,415
4,914,912,097
2.6%
122,938,682
$ ,594,825
Springford
114,705,700
116,292,740
1.4%
1,587,040
$ ,406
Totals
35,431,814,248
37,596,748,217
6.1%

31. Where to go from here? Finance Committee Meetings
1st Monday of Each Month March - June
Evaluate Commonwealth Budget Implications
Governor’s Presentation on February 7, 2017
Potential Legislative Actions
Capitalize on Retirements
Track Enrollment and Class Sizes for Staffing Recommendations