1. Mountain Lakes Board of Education
Budget 1

2. Mountain Lakes School District Budget Goals
We are committed to providing the resources that allow us to build upon the successful educational partnership that exists among our students, staff, families, community and administration.
We provide a dynamic and continuously evolving curriculum with a focus on rigorous academic preparation, developing personal resiliency and promoting life-long learning skills for all learners.
MLHS graduates earn admission to the most competitive colleges, universities and military academies around the world. Achieving our goals enables each student to actualize his or her unique potential.
Where

3. Objectives Discuss Proposed 2018-2019 Budget
Expense reductions to support student achievement and district curriculum goals:
Salary increases from the current MLEA contract continue to be offset by changes in teaching staff composition (retirements) and other savings from the contract
By changing our healthcare benefits provider to Cigna from Horizon as of 1/1/18, we reduced our annual premium increase by $360,000, from $760,000 to $400, Had we stayed with Horizon, our premiums would have increased by 19%, while Cigna agreed to a 10% increase.
Changes in long-term substitute teacher compensation structure
Maintain buildings and grounds in support of district goals and increase capital outlay by 60%
Maintain manageable tax increase to provide a thorough and efficient education
Budgets for the past 8 years included tax levy increases at an average of 1.66%
Maximize alternate revenue sources
Before and after-care program at Wildwood continues to be well-received and well- attended, estimated revenue $200,000
Biotech Academy, estimated revenue $254,800
Engage in a Community Dialogue

4. Proposed 2018-19 Budget(1) 2017-2018 $ (+/-) % (+/-) General Fund
$ (+/-)
% (+/-)
General Fund
Current Expenses
$26,639,929
$27,305,395
$665,466
2.50%
Capital Outlay
$248,298
$398,298
$150,000
60.00%
Subtotal
$26,888,227
$27,703,693
$815,466
3.03%
Fed/State programs
$288,000
$244,800
($43,200)
(15.00%)
Debt Service
$1,137,825
$1,148,125
$10,300
0.90%
Total
$28,314,052
$29,096,618
$782,566
2.76%
(1) For Wildwood School, Briarcliff Middle School, and Mountain Lakes High School 4 4

5. 2018-19 Budget Analysis Current Expenses: $29,096,618
vs (1):
Special Ed (Incl. Tuition) – up 22.3%
Instruction – down 2.8%
Employee Benefits – up 6.4%
Capital Outlay – up 60%
Operation & Maintenance – up 4.7%
Maintains budget goals
Maintains class sizes: K
(core academic content)
Percentage change from
Questions: Contact Daniel A. Borgo; 5 5

6. Capital Projects: $398,298 High School: $57,000.00
Floor Covering $18,000.00
Furniture/Cabinet Replacement & Upgrade $28,500.00
Heat System Repairs $10,500.00
High School: $57,000.00
Alertus System $14,000.00
Air Condition, Phase II $30,000
Briarcliff School: $44,000.00
Replacement of Cabinets $12,000.00
Repair/Replacement Unit Ventilation $13,000.00
Alertus System $14,000.00
Gym Floor Repairs $12,000.00
Wildwood School: $51,000.00
Exterior Trim $31,000.00
Floor Covering $13,500.00
Temperature Controls $9,500.00
Lake Drive School: $54,000.00
School Bus Replacement $68,000.00
Grand Stands (ramp) $26,000.00
Tech Lease Purchase $50,000.00
State SDA Assessment $48,298.00
District: $192,298.00 6

7. Revenue Sources – 2 Yr. Period
Current Budget
Tentative Budget
Change
Balances Appropriated + Reserves
$700,000
$549,171
($150,829)
Capital Reserve
$200,000
$300,000
$100,000
Boonton Twp Tuition $16,291 vs $16,617)
$4,333,408
$4,420,122
$86,714
Tuition ( Non-res. = HS, 4 BC, 3 WW; Faculty = 34)
$243,700
$262,500
$18,800
Academy for Biotech (35 students) $7,280
$116,025
$254,800
$138,775
State Aid
$787,376
$837,405
$50,029
Other Aid
$288,000
$244,800
($43,200)
Debt Service
$114,197
$99,741
($15,276)
Miscellaneous
$187,229
$207,229
$20,000
Sub Total
$6,969,935
$7,175,768
$205,013
Local Taxes
$21,344,117
$21,920,850
$576,733
TOTAL REVENUE
$28,314,052
$29,096,618
$782,566 7 7 7 7

8. Tax Impact for Mountain Lakes Homeowner
Impact
% (+/-)
General Fund
$20,320,489(1)
$20,872,466
$551,977
2.72%(1)
Debt Service(2)
$1,023,628
$1,048,384
$24,756
2.42%
Total
$21,344,117
$21,920,850
$576,733
2.70%
Tax increase of approximately $343 on the average home assessed at $783,584
Tax levy attributable to Schools represents ~68% of Homeowners’ local taxes, with balance going to Borough, County, and Open Space
Refinancing of Serial Bonds in 5/2015 will reduce annual debt service by $30 - $35K per year through 2023
Tax levy cap including adjustment by NJDOE for increases in healthcare costs is $20,978,901 or a 3.24% increase
(2) Includes debt service aid of $98,921 and $99,741 respectively for and 8 8

9. Financial Management Appropriations from 2010-11 through
were $2.50M below allowable cap 9

10. Our $29.1 Million Budget Is Hard to Find in State and News Reporting
$37.8 million overall school budget
Per state reports and news reporting
Including debt service and all forms of federal/state aid
$8.7 million attributable to Lake Drive
Fully charged back to sending districts
Absorb some overhead/other expenses (Approx. $1.0 million)
$29.1 million “Mountain Lakes” budget
$28.0 million projected spending
$1.1 million debt service (previously approved via referendums) 10 10

11. Academy for Biotechnology 1st Year Program Analysis
• Advisory Council update
• New courses, planned curricular changes
• Student Survey/Focus Group results
• Faculty Survey results
• Overall class size impact
• Co curricular involvement
• Enrollment for :
18 Returning Sophomores (4 Mountain Lakes Residents)
22 New Freshman (5 Mountain Lakes Residents)

12. Classes for MLHS students(1)
Academy for Biotechnology Budget
Year
# Students OD/ML
Revenue
Expenses
Net Proceeds
Classes for MLHS students(1)
15/5
$147,200 Actual
$25,000 Start Up Monies
$43,700 2
$33,000 (2) 6th Periods
$45,500 ML Students
$102,500 Total
30/5
$254,800 Projected
$54,031 Salaries (1) Teacher
$107,269
$15,000 HB
$146,531 Total
45/5
$364,000 Projected
$152,000 Salaries (2) Teachers
$77,000 3
$30,000 HB (2) Teachers
$49,500 (3) 6th Periods
$10,000 Supplies
$287,000 Total
60/5
$473,200 Projected
$190,000 Salaries (2) Teachers
$133,200
$35,000 HB
$20,000 Supplies
$340,000 Total
NOTE: Expenses funded by Morris County Vo-Tech include books, lab equipment, classroom outfitting, the first year salary and benefits of the Biotech teacher, ~40% of salary and benefits in year two and ~25% in year three.
(1) Classes available for ML students (non Biotech) taught by Biotech Academy teacher(s).

13. Future Budget Considerations Tax Impact of Referendum
Change in Budget From Prior Year:
Budget Before Referendum (1) (2)
$576,733
$395,112
$439,148
$413,032
Operating Costs from Referendum (1) (3) -
$300,000
$6,000
$6,120
Referendum Debt Service (4)
$850,178
$55,138
($14,246)
Total Change
$1,545,290
$500,286
$404,906
Change Tax Levy From Prior Year (5)
$343
$258
$287
$270 NA
$196 $4
$555
$36
($9)
Total
$1,008
$326
$264
Assumes 2% increase in general fund tax levy after
Debt service for current debt, net of state aid. Assumes no change in debt service aid after
Incremental operating expenses includes: 2-3 new teachers, technology, custodial services, utilities, and other transition costs
Referendum debt, net of state aid. Assumes 26 year bond at 4.0% with first principal payment made in
Assumes no change in tax ratable base after Assumes the average home assessed at $783,584 13

14. Additional Future Budget Considerations
Long-term capital expenditure plan independent of the referendum.
Continued increases in healthcare costs.
Mountain Lakes Education Association contract renewal, July 1, 2018.
Ongoing efforts to find alternative revenue sources and/or operating expense savings.