1. The Budget Under Act 1 – Amended by Act 25 of 2011
11/8/2018
The Budget Under Act 1 – Amended by Act 25 of 2011
Preliminary General Fund Budget
Revenue
November 15, 2011
11/8/2018

2. Presidential Election Year Timeline
Act 1 Budget Timeline geared to primary election date
Normal primary election date = third Tuesday in May
Presidential election year primary election date = fourth Tuesday in April (4/24/12)
2012 primary election is 23 days earlier than 2011 – so all dates are accelerated about 3 weeks.
11/8/2018

3. Exeter Township School District
Budget Timeline FY
Exeter Township School District
Timeline for events related to the FY General Fund Budget Timeline PRELIMINARY & PROPOSED FINAL
Date
Action
September 1, 2011
Index is published in PA Bulletin - 1.7
November 15, 2011
Board Reviews preliminary budget
December 6, 2011
December 20, 2011
Board Reviews preliminary budget & Preliminary budget available for public display, or adopt a resolution indicating that taxes won't be raised above the index.
January 17, 2012
School Board Adopts Preliminary Budget
February 9, 2012
Deadline to submit exception filings to PDE
March 20, 2012
Board Reviews Proposed Final Budget
April 17, 2012
Update to Proposed Final Budget
May 1, 2012
Department of Education notifies school districts of the amount of their allocation of property tax reduction funding.
May 8, 2012
May 15, 2012
Adopt FY proposed final budget and mail Certification of Use of PDE 2028 to PDE
May 30, 2012
School District Deadline to make Proposed Final Budget available for public inspection on PDE 2028
June 8, 2012
School District Deadline to offer Public Notice of it's intent to adopt the Final Budget
June 19, 2012
Final Budget adoption; set millage

4. General Fund Revenue by Source
FY 08-09
FY 09-10
FY 10-11
FY 11-12
FY 12-13
Actual
Final Budget
Revised Budget
Preliminary Budget
FY to 11-12
Local Sources
$ 42,444,873
$ 44,268,538
$ ,665,715
$ 44,878,887
$ 45,005,334
$ 44,724,655
$ (280,679)
-0.62%
State Sources
$ 15,688,658
$ 14,914,669
$ ,028,523
$ 15,995,757
$ 16,100,207
$ 16,732,324
$ ,117
3.93%
Federal Sources
$ ,630
$ 1,729,883
$ ,054,020
$ ,071
$ ,786 $
0.00%
Other Sources
$ ,263
$ ,506 $
$ ,416
$ ,000
$ (271,416)
-99.27%
Total Revenue
$ 59,246,424
$ 61,030,596
$ ,748,258
$ 61,743,131
$ 61,958,743
$ 62,038,765
$ ,022
0.13%
% Change from PY
6.9%
3.0%
4.5%
-3.1%
-2.8%
Excl Other Financing Sources
Before Real Estate Tax Increase
11/8/2018

5. 11/8/2018

6. Revenue from Local Sources
11-12
12-13
Revised Budget
Preliminary Budget
Change
% of Local
Real Estate (Millage )
$ ,457,582
$ ,090,337
$ (367,245)
85%
Earned Income Tax (.5%)
$ ,211,526
$ ,259,699
$ ,173 7%
Business Privilege (.00075/.00050)
$ ,000
$ ,000 $ 1%
Transfer Tax (.5%)
$ ,000
$ ,000
$ ,000
0.4%
Per Cap/LST ($10/10)
$ ,134
$ ,134
0.5%
Total Taxes Levied
$ ,554,242
$ ,254,170
$ (300,072)
11/8/2018

7. 11/8/2018

8. 11/8/2018

9. 11/8/2018

10. Real Estate Tax Number Budget before State Property Tax Reduction
EXETER TOWNSHIP SCHOOL DISTRICT
PROPERTY TAX AMOUNT
Collection rate 96.00%
Total = July '12 Assessments ESTIMATE
$ 1,390,246,600
Current millage
29.982
Tax Levy w/o homestead exclusion
$ ,682,374
Collection rate
96.00%
Real Estate Tax Number Budget
$40,015,079
Senior Citizen Volunteer program cost
$5,000
Revenue to Berks County Industrial Development Authority
$281,000
Real Estate Tax Number Budget before State Property Tax Reduction
$39,729,079
Estimate of State Property Tax Reduction
$ ,355,000
Real Estate Tax Net of Property Tax Reduction
$ ,374,079
11/8/2018

11. 11/8/2018

12. 11/8/2018

13. 11/8/2018

14. 11/8/2018

15. OTHER LOCAL REVENUE 11-12 12-13 Revised Budget Preliminary Budget
Change
% of Local
Delinquent
$ ,154,000
$ ,200,000
$ ,000 3%
Earnings on Investment
$ ,000
$ ,000 $
0.3%
Federal IDEIA - IU
$ ,797
$ ,797 2%
Other
$ ,295
$ ,688
$ (26,607) 1%
Total Other Local Revenue
$ ,451,092
$ ,470,485
$ ,393 6%
11/8/2018

16. 11/8/2018

17. Local Revenue Trends
Real Estate Tax Collection Rate is projected to be 96.5% versus 96% budgeted resulting in a $131,000 favorable budget variance net of discount and penalty.
12-13 Real Estate Tax Collection Rate Assumption – 96%
Due to the sluggish housing market, and property assessment reductions, the real property assessment growth is estimated to decrease by .67%
Residential and Commercial assessment reductions effective for will likely result in $310,000 less in real estate tax revenue.
Real Estate Tax revenue is projected to decrease by $385,000, budget to budget before any tax increase.
Most other local revenue sources continue to be constrained.
11/8/2018

18. “Noteworthy” Other Local Revenue Sources 11-12
Rentals – Clearwire Wireless Communication Site Lease at Senior High - $18,500
Stadium Rentals - $5,000
Hess Demand Response Program - $12,600
Antietam Student Athlete Fees - $14,600
Extracurricular Activity Fee – Estimated- $40,000
ECEF & APT Donations - $50,000
11/8/2018

19. General Fund Revenue by Source
FY 08-09
FY 09-10
FY 10-11
FY 11-12
FY 12-13
Actual
Final Budget
Revised Budget
Preliminary Budget
FY to 10-11
FY to 11-12
Local Sources
$ 42,444,873
$ 44,268,538
$ ,665,715
$ 44,878,887
$ 45,005,334
$ 44,724,655
$ (660,381)
$ (280,679)
State Sources
$ 15,688,658
$ 14,914,669
$ ,028,523
$ 15,995,757
$ 16,100,207
$ 16,732,324
$ ,684
$ ,117
Federal Sources
$ ,630
$ 1,729,883
$ ,054,020
$ ,071
$ ,786
$ (1,474,234) $
Other Sources
$ ,263
$ ,506 $
$ ,416
$ ,000
$ (271,416)
Total Revenue
$ 59,246,424
$ 61,030,596
$ ,748,258
$ 61,743,131
$ 61,958,743
$ 62,038,765
$ (1,789,515)
$ ,022
% Change from PY
6.9%
3.0%
4.5%
-3.1%
-2.8%
0.13%
-2.81%
11/8/2018

20. State Sources of Revenue
11-12
12-13
Change
Basic & Operating Subsidies
$ ,018,244
$ 8,018,244 $
Subsidies for Non-Educational Programs
$ ,188,743
$ 2,213,629
$ 24,886
Specific Educational Program Subsidies
$ ,775,959
$ 1,775,959
Subsidies for State Paid Benefits
$ ,581,718
$ 3,188,599
$ 606,881
Property Tax Relief
$ ,354,650
$ 1,355,000 $
Extra Grants
$ ,893
$ ,893
Total
$ ,100,207
$ 16,732,324
$ 632,117
11/8/2018

21. Exeter Township School District Basic Ed Funding & Other State Grants FY FY FY FY
State Appropriation - BEF
$ 7,881,905
$ 7,353,296
$ ,073,431
$ 7,888,244
Federal EdJobs Appropriation $ $
$ ,705
Federal ARRA Appropriation
$ ,554
$ ,928
Total BEF
$ 8,342,850
$ ,632,064
Other State Funding:
EAP
$ ,587
$ ,843
$ ,576
Dual Enrollment
$ ,668
$ ,072
$ ,256
Accountability Block Grant
$ ,629
$ ,211
$ ,420
$ ,893
Reimb of Charter School Exp
$ ,855
$ ,963
$ ,670
$ ,739
$ ,089
$ ,922
Total BEF & Other Funding
$ 8,567,644
$ 9,050,939
$ ,306,986
$ 8,069,137
Change Yr to Yr.
$ ,295
$ ,047
$ (1,237,849)

22. 11/8/2018
11/8/2018

23. 11/8/2018

24. State Sources of Revenue
Basic Ed Subsidy – Governor is looking at a status quo for next year. Legislators are saying that while they don’t expect the subsidy to decrease, they see little or no increase. (2% at most = $157,765).
Debt Service Reimbursement will be revised based on the debt service savings realized from refunding.
State reimbursement for employer paid social security will be revised based on the budgeted wages for FY
State reimbursement for employer paid retirement contributions for FY increases by an estimated $570,000 due to the increase in the contribution rate from 8.65% to 12.19%, or a 40% increase. This line item is also subject to revision based on budgeted wages for FY
11/8/2018

25. Federal & Other Revenue
Federal Revenue
11-12
12-13
Change
Title I
$ ,640
$ ,640 $
Title II
$ ,146
$ ,146
Medical Assistance
$ ,000
$ ,000
$ ,786
$ ,786
Other Revenue
Proceeds from Extended Term Financing
$ ,416 $
$ (271,416)
Sale of Assets
$ ,000
$ ,000
$ ,416
11/8/2018

26. Act 1 Index
Each September, PDE publishes the index for use in the determination of allowable tax rate increases in the following fiscal year. The base index is the average of the percentage increase in the statewide average weekly wage, as determined by the PA Department of Labor and Industry, for the preceding calendar year and the percentage increase in the Employment Cost Index for Elementary and Secondary Schools, as determined by the Bureau of Labor Statistics in the U.S. Department of Labor, for the previous 12-month period ending June 30. For a school district with a market value/personal income aid ratio (MV/PI AR) greater than , its index equals the base index multiplied by the sum of 0.75 and its MV/PI AR for the current year.
Exeter Township School District Index for FY = 2.2%
11/8/2018

27. Exeter Township School District Calculation of Adjusted Index
For Use in FY Budget
I. Act 1 Index based on SAWW and ECI
1.7%
II. ETSD MV/PI AR Aide Ratio
0.5306
III. Calculation of Adjusted Index:
MV/PI AR
Adjustment
0.75
Factor for Increase
1.2806
Adjusted Index (Act 1 Index (x) Adj Factor
2.2%
IV. Maximum Real Estate Millage Increase
FY Mills
29.982
Adjusted Index 11-12
Maximum Tax Rate FY w/o referendum exceptions
30.635
Mill Change
0.653
Value of a Mill
$ 1,350,000
Dollar Value of Real Estate Tax Increase
$ ,164
11/8/2018

28. 11/8/2018

29. Changes to Act 1 – Act 25 of 2011 Eliminates all but three exceptions:
Pension (calculation revised)
Special Education (calculation revised)
Debt (grandfathered, and electoral debt)
11/8/2018

30. Pension Exception
If the anticipated increase in the school district‘s share of payments to the Public School Employees‘ Retirement System between and is greater than the school district‘s index, the school district will be eligible for an exception equal to the portion of the estimated payment increase that exceeds its index.
ETSD
Pension Exception FY FY
School District Index
BASE SALARY FOR REFERENDUM EXCEPTION
Employer Retirement Rate
SD Share of Retirement %
SD Retirement Cost
Difference
Index % of PY Share of Payments to PSERS
Est of Exception Amount
1.8%
$ ,953,505
8.65%
4.06%
$ ,216,205
2.2%
12.19%
5.72%
$ ,713,935
$ ,730
$ ,757
$ 470,974
11/8/2018

31. Debt Exception Clarification of Tax Rate Rescission
Based on the original language contained in the Taxpayer Relief Act, PDE previously interpreted ―final payment of interest and principal‖ – a phrase found in section 333(f) in conjunction with approved debt exceptions – to require the rescission of tax rates following either the last scheduled payment of a bond issue or the refinancing of a bond issue.
Act 25 of 2011 added section 333(o) to clarify ―final payment of interest and principal‖ for previously-approved Academic or Nonacademic school building projects to not include a school district‘s payment of debt as a result of refunding or refinancing the debt.
However, previously-approved Grandfathered Debt (indebtedness incurred prior to the effective date) and Electoral Debt referendum exceptions must still be rescinded according to the language in the Taxpayer Relief Act – following either the last scheduled payment of a bond issue or the refinancing of a bond issue. If indebtedness was refinanced, school districts may request approval of a referendum exception for the refinanced indebtedness but only in the fiscal year immediately following rescission of the originally-approved tax rate increase related to the refinanced principal.
11/8/2018

32. FY FY
FY With Refinancing
FY No Refinancing
Millage
29.624
29.982
Year to Year Increase in Millage
1.2%
Rescinded Mills Due to Refinancing
(0.50)
Base Mills Subject to Index
29.481
A. Maximum Mills Based on Index
30.129
30.642
Index
2.20%
Increase in Mills
0.147
0.660
Additional Revenue Generated
$ ,038
$ 890,465
Effective Increase In Millage w/No Exceptions
0.49%
B. Debt Exception - Recission
$ ,543
0.5011
Millage Including Rescission Amount (A + B)
30.631
2.16%
C. Retirement Exception
$ ,974
$ 470,974
0.3489
D. Debt Exception - New Allowable
$ ,007
$ 322,741
Note: Would not take more than "before refunding exception amount"
0.2391
Millage w/ Rescission, Retirement ( A+B+C)
30.979
30.990
3.3%
3.4%
Millage w/ Rescission, Retirement, New Debt( A+B+C+D)
31.219
31.230
11/8/2018

34. Budget Review Dates to remember
December 6th & 20th – Expenditure and Fund Balance Review
January 10, 2012 – Revisions
January 17, 2012 – Adoption of Preliminary Budget for
11/8/2018