1. 2018-19 Proposed Expenditure Budget
June 26, 2018

2. Budget Process
Input
Board Study/Executive Sessions
District Budget Committee
Negotiation Solution Team (NST) Meetings
Proposed Budget approval provides the limit – or framework - for the Adopted Budget
Scheduled to be considered June 26, 2018
Adopted Budget is the official budget
Scheduled to be considered July 10, 2018
(must be approved by July 15th each year)
Note – the State forms are the official adopted budget and the Gold Book represents our Working Budget
Net Result is the State Forms General Budget Limit from $200 million in FY17 to over $199 M in FY18 (ADM decreases offset by inflationary increases– still have $13.44M in DAA State-imposed cuts)

3. DVUSD Financial Priorities
Salary Increase for All Employees
Maintain Limited Capital Funding
Manage the Structural Deficit

4. Summary of Proposed Gold Book
Highlights of Proposed Budget Factors
Base Support Level
M&O Override continues at 15%
1.8% Inflationary increase added to M&O
Current Year funding provision included (projecting 0.5% reduction)
The Teacher Experience Index (TEI) is increased from to
Includes ongoing Proposition 123 funding
M&O carryforward projected to be $1,007,000

5. Summary of Proposed Gold Book
Highlights of Proposed Budget Factors (con’t)
Staffing is based on a projected student enrollment decrease of 0.5%, using current staffing standards
The class size standards that are used are KDG (26), 1st (28), 2nd-3rd (29), 4th (33), 5th-6th (34), 7th-8th at K-8 schools (27), 7th-8th at middle schools (28), high schools (27.5)
District Additional Assistance (capital) cut at least $10 million - or 65%
Continued use cash accounts included in budget at an amount of $2,500,000 (includes: half of 5-Cash Accounts, $2.1 M; Athletic Participation Fees, $300K; Parking Fee Increase $100K )
Includes a projection of $400,000 for Adjacent Ways projects
Net Result is the General Budget Limit increases from $199.8 million in FY18 to $213.7 million in FY19
Staffing is at “+1”

6. FY19 Proposed Budget Summary
Note – the State forms (GBL) are the official adopted budget and this represents our Gold Book, or Working Budget

7. Summary of Adjustments to 2018-19 Budget
Staffing
Salary increases provided for all employees:
$13 million in M&O assigned to salary increases
Certified Increase 12% (10% plus 2% in Classroom Site Fund)
Other Professional Staff 10%
Average Classified Increase 7%
Average Admin/Exempt Increase 4%
Decrease of 3.3 FTE Teachers (due to student decline)
Increase of 1.8 FTE Classified Staff (due to Special Education para professionals)
Classified Salary Increase for January 1, 2018 Proposition 206 Minimum Wage
Full-Time District Athletic Director Reestablished
Additional School-Based Administrative Support Included
Added Nursing as Hard-To-Fill Positions
Increased Substitute Teacher Pay by $5/Day

8. Summary of Adjustments to 2018-19 Budget (con’t)
Non-Staffing
Health Insurance rates increased 8.06% - or $1.896 million - with 100% of the increase funded from VSEBG reserves, as well as small plan design changes
State Retirement increased from 11.5% to 11.8%
Utilities were not increased (due to APS rate changes related to Federal Tax Reform)
Special Education Tuition increased $150,000
Capital Budget established at $4.88 million in FY19 from $4.4 million in FY18

9. Summary of FY19 State-Imposed Budget Reductions
District Additional Assistance (capital)
Reduction of at least $10,169,000 (65% of $15.6 M total)

10. Projected Tax Rate Implications of 2018-19 Budget
Proposition 117 (2012) Made Changes to Assessed Valuations
Primary and Secondary Assessed Valuation combined in to one Net Assessed Valuation
Existing Assessed Valuation growth limited to 5% annually
Implemented for Tax Year 2015 ( School Year)
DVUSD Net Assessed Valuation increased 5.5% to $2.575 Billion
Projected Tax Rate Changes
Primary Rate decreasing 1.0%, or ($ ), to $4.240
Secondary Rate increasing 5.2%, or $0.1278, to $2.600
Net impact on the average assessed value residential parcel of $202,776 is an annual increase of $66, or 7.2%
Combined Rate of $ a 6.1% - or $ – increase over FY16 combined amount of $6.324

11. Factors Impacting Tax Changes
Primary Tax
Assessed Valuation Change & Qualifying Tax Rate (QTR)
DVUSD Net Assessed Valuation increased 6.1%
QTR decreased (2.8%) from $ in to $ in
State Equalization Assistance Property Tax Rate (SETR)
Homeowner’s Rebate
Cash no longer being considered in tax rate calculation
Secondary Tax
Assessed Valuation Change
Fixed payment schedules for bonds and overrides being paid for by an increasing assessed valuation
Due to budgeting for Adjacent Ways, we will be required to publish a Truth and Taxation Notice

12. NOTE – includes an estimate of Homeowner’s Rebate

13. Deer Valley Unified School District Sample Parcel Tax Comparison 2017 to Projected 2018
NOTE – includes an estimate of Homeowner’s Rebate

14. Notes:
FY18 amounts were $400,000 with an annual property tax of $ for a $100,000 residence.
FY18 Adjacent Ways planned to be used for next modernization project and/or traffic signal on 51st Ave.

15. Questions/Comments