1. Upper Merion Area School District Finance Committee Presentation
April 18, 2016

2. 2016-17 Proposed Final Budget -Additional Staffing- -0% Real Estate Tax Increase-
Revenues
$90,578,384
Expenditures
$93,360,130
Use of PSERS Stabilization Fund
($289,474)
Adjusted Expenditures
$93,070,656
Revenues Over (Under) Expenses
($2,492,273)

3. Expenditures
300’s – Appraisal Services, Legal Services, Tax Collector Salaries & Commissions. Technology Services, Special Education, Early Intervention.

4. Revenues
300’s – Appraisal Services, Legal Services, Tax Collector Salaries & Commissions. Technology Services, Special Education, Early Intervention.

5. Realty Transfer Tax 2015-16 2016-17 $ Change % Change
$1,277,810 $0
0.00%
Typical Realty Transfer Taxes generate $100,000/ month or $1,200,000/ year.
Realty Transfer Taxes = $1,553,225
A. $600,000– Attributed to 6 specific transactions.
B. $950,000 – Considered Typical Realty Transfer Tax for
– Approximately $2.5M through March 2016
A. $1,600,000 attributed to 8 specific transactions.
B. $900,000 considered typical realty transfer tax for
History $936,690; $1,357,714
$913,575; $2,039,151
$1,553,225

6. Current Real Estate Taxes
Budget
Actual
Variance
$64,859,737
$64,710,548
($149,189)
$64,556,661
$65,286,864
$730,203
$66,966,730
$65,341,604
($1,625,126)
$68,642,021
$67,954,363
($687,658)
YTD
$71,981,082
$70,321,145
($1,659,937)

7. Fund Balance June 30, 2015 Fund Balance $14,600,000 2015-16 Net Income
$3,200,000
Budgeted Transfer to Capital Reserve
($700,000)
Fund Balance Spend
($400,000)
Transfer to Capital Reserve
($2,000,000)
June 30, 2016 Fund Balance
$14,700,000

8. Fund Balance Assigned Fund Balance $8,000,000 Unassigned Fund Balance
$6,700,000
June 30, 2016 Fund Balance
$14,700,000

9. Use of Fund Balance Fund Balance June 30, 2016 $ 16,000,000
$ ,000,000
Budget Year Shortfall
$ (2,000,000)
Fund Balance
June 30, 2017
$ ,000,000
Budget Year Shortfall
$ (2,000,000)
Total Shortfall
$ (4,000,000)
Tax Increase
$ ,000,000
Net Budget Shortfall
$ (2,000,000)
Fund Balance
June 30, 2018
$ ,000,000

10. Use of Fund Balance Fund Balance June 30, 2018 $ 12,000,000
$ ,000,000
Budget Year Shortfall
$ (2,000,000)
Total Shortfall
$ (4,000,000)
Tax Increase
$ ,000,000
Net Budget Shortfall
$ (2,000,000)
Fund Balance
June 30, 2019
$ ,000,000
Budget Year Shortfall
$ (2,000,000)
Total Shortfall
$ (4,000,000)
Tax Increase
$ ,000,000
Net Budget Shortfall
$ (2,000,000)
Fund Balance
June 30, 2020
$ ,000,000

11. Excel Forecast Model

12. Long Term implications of forgoing $2.5M in Revenue in 2016-17
$2,492,273
5 years
$12,461,265
$2,492,273
10 years
$24,922,730

13. Proposed Final Budget Options
Real Estate Tax Option
$ Increase
% increase
Increase/ 100,000 Assessed Value
No Increase $0
0.00%
Act 1 Index
$1,705,449
2.37%
$45
Exceptions
(Retirement)
$571,762
0.79%
$15
Total
$2,277,211
3.16%
$60

14. Recommendation Act 1 Index Plus Exceptions necessary to support contractual and mandated increases in expenditures. Additional increases in recurring revenues and decreases in recurring expenditures to be used for Academic and Operational Needs. Additional Assessed Value from Redevelopment to be used for staffing of Additional School and other projected growth.

15. Academic & Operational Needs
Special Education
Elementary– Learning Support Teacher
High School - Emotional Support Teacher
Middle School – 2 Teachers - Co-Teaching Model & Emotional Support
Student Services
Psychologist
2 Early Intervention Aides
Secondary
High School – 0.4 Health & Phys Ed
High School – English/ Social Studies Teacher
Middle School - Instructional Coach

16. Academic & Operational Needs
Elementary – Professional & Suport
Elementary – 1.3 ESL Teachers - Increasing numbers of ESL Students
Elementary – 0.5 Reading Specialist
Elementary – 0.2 Music Teacher
District
0.5 Security Guard
Technology Systems Specialist
Educational Computer Aide
Technology Certifications
Grant Writer

17. Discussion & Questions

18. Potential Adjustments to Budget:
Elimination of Budgetary Reserve - $250,000
Elimination of Assessment Appeal Losses - $100,000
Elimination of Real Estate Advisor Fees - $200,000
Elimination of Capital Equipment Line Item - $50,000
Elimination of Transfer to Capital Reserve for busses - $500,000
Subtotal - $1,100,000
Budget Shortfall - $2,492,273
Budget Eliminations - $1,100,000
Remaining Shortfall - $1,392,273 = .37Mills = 1.95% millage increase

19. Long Term implications of forgoing $1.1M in Revenue in 2016-17
$1,100,000
5 years
$5,500,000
$1,100,000
10 years
$11,000,000

20. Additional Potential Adjustments to Budget:
10% cut to building budgets - $75,000
10% cut to supplies - $125,000
Personnel - $1,192,273 ~14 positions or combination of positions and programs
Subtotal – 1,392,273
Subtotal from previous list - $1,100,000
Total Adjustment to Budget - $2,492,273
Budget Shortfall - $2,492,273
Budget Eliminations - $2,492,273
Remaining Shortfall - $0

21. Current Redevelopment
2016
Ifly
Pet Smart
King of Prussia Mall Expansion
Fed Ex Distribution Center
Village at Valley Forge
Apartment Complex #1 – 363 Units
Retail – 250,000 square feet

22. Current Redevelopment
Apartment Complex – Bridgeview – 250 Unit
Townhomes – Bridgeview – 335 Units
Apartment Complex – Moore Rd – 248 Units
Apartment Complex – Vandenburg – 311 Units
Village at Valley Forge
Apartment Complex #2 – 339 Units
Apartment Complex #3 – 276 Units
Stacked Townhomes – 132 Units
Age Restricted Apartments – 232 Units