1. Williamsville Central School District Long-Range Financial Plan and Reserve Plan Report December 2016
Prepared By: Thomas Maturski - Assistant Superintendent
Scott G. Martzloff - Superintendent

2. Long-Range Financial Plan: Interpretation and Usage
Insight into the impact of budget development decisions
Reviews the critical internal and external factors that result in revenue and expense changes in future budget years
Five-year forecast of revenue and expense budgets
Information is at a point in time and will not be updated in the budget process

3. Balanced Budgeting Process Requirement
New York State requires the Expense budget to equal the Revenue budget
Each budget (fiscal year) must be approved by the Board of Education and the Community
School districts must follow applicable State law regarding the budget process (ex. Tax cap, Public notice, Budget vote)

4. WCSD Budget Development Process
Estimate Total Revenue
Determine program increase amounts to sustain programs
Review prior year budget expenditures
Calculate difference between revenue and expense budgets
Consider program enhancements
Implement efficiencies and/or reallocate funds due to program needs
Develop and discuss budget reduction options
Update of budget information
Include budget reductions in preliminary budget
Discuss preliminary budget
Approve preliminary budget and seek community approval

5. Revenue - Impact of Tax Cap
Although there is no tax levy increase limit for the District exceeding the calculated Tax Cap/Tax Threshold limit requires super-majority voter approval (60%)
A budget defeat allows only one revised budget vote
If there are two budget vote defeats, there is a mandated % levy increase
May 2016 – New York State Education Department
There were 34 school districts throughout the state that proposed budgets that exceeded their tax cap limit. Eight of these budgets or 25% failed to be approved by their communities.

6. Revenue – (Impact tax Cap/Threshold Law)

7. Historical Changes

8. Long-Range Forecast - Revenue
State Aid – New York State foundation aid is estimated to increase at approximately 2.0% each year or $600,000.
Full restoration of the past GEA reduction occurred in = +$3,225,278.
Sales Tax – An average increase of $50,000 is projected.
Loss of purchasing power of the Canadian dollar appears to have impacted sales tax revenues
Tax Levy – The tax levy is projected under the tax cap/threshold amount
Average increase of 1.50% or $1.8 million for and
Average increase of 2.00% or $2.4 million for and
Appropriated Reserves - Decrease due to reductions in reserve balances in
Reduced $150,000 in budget
Fund Balance – No change in appropriation level for $5,424,000
Reduced $124,000 by the year

9. Human Resource Expense Drivers
Salary increases per negotiated contracts - increases
New York State Retirement system rate changes – decreases
Health insurance (self-insured) – increase or decrease based on claims
Workers compensation – employee safety/injury
Social security payments (Federal law) – increase dependent on number of employees and rate changes
Changes in staffing – retirements-decreases, instructional programs-increases

10. Human Resources - Expense Drivers

11. Long-Range Forecast - Expense
Salary – The forecasted increase ranges from 2.50%-2.00%.
Teacher and Employee Retirement Systems – A decrease of $525,000 over the time period of the plan.
Health Insurance – No increase is included for Future increases are conservatively budgeted in at $1.2 million, at $1.3 million and at $1.7 million.
Utilities – No change is made to any year of the forecast.
Facilities – No increase or decreases are included to these budgets. Facility maintenance and improvements are highly dependent on the Repair Reserve.
Transportation – Contract increases based on the Student Transportation of America agreement. Agreement expires at the end of the year. Other school districts have experienced major increases in transportation costs with new contracts.

12. 2016-17 - Long-Range Plan Summary of Forecast 2017-18 2018-19 2019-20
Expense Budget
$ 186,049,402
$190,154,042
$ 193,858,860
$198,071,969
Revenue Budget
$ 185,058,573
$187,241,654
$ 190,164,827
$193,221,963
Current Year Reductions Required
$ (990,829)
$ (2,912,388)
$ (3,694,032)
$ (4,850,006)
Forecasted Balanced Budget
Projected Budget Increases
$ ,033,796
1.66%
$ 4,104,641
2.21%
$ ,704,817
1.95%
$ 4,213,110
2.17%

13. Long-Range Plan - Financial Summary
Revenue – No major increases in State aid are projected in the plan, Tax Levies issued under the Tax Cap.
Expense – Reflects human resource increases between 2.5% and 2.0%. Stability in retirement system rates, increases in health insurance in future years.
New Mandates – Mandates that could detrimentally increase expenses and if tied to State Aid they could negatively affect future district budgets and instructional programs.
Other Considerations – Transportation contract expires in Fuel and utility increases may change based on world events. Interest rates may increase changing government programs as a result of the presidential election.

14. Long-Range Plan - Financial Summary
Key Factors for Future Budget Development:
Revenue budget dictates the expense reductions required to balance the budget
Control of expense budget will continue to require to focus on Human Resource areas
Potential for significant changes in other expense categories
Continuation of a reduction reserve allocations to sustainable levels is critical to the district and its budget process

15. Long-Range Reserve Plan
Ability to sustain/minimize program reductions
Need for the District to maintain reserve balances for self- funded expenses
Acknowledge that reserve balances will diminish and not be a viable revenue option at a future point in time
Long-range reserve plan transitions the appropriated reserve amounts to sustainable levels

18. Conclusion: Long-Range Financial and Reserve Plan
Reiterate that the plan is projected at a fixed point in time
The plan should not be interpreted as a definite financial forecast
The plan is a tool to assist in decision making for current and future budgets
Future Long-Range Budgeting Goal:
Revenue increases = expense increases = budget stabilization
Creates Stability for the District’s Educational Programs