1. Norwood-Norfolk Central School District
Budget Presentation

2. Discussion Projected Revenues Tax Levy History State Aid History
1st Draft Revenues as a % of total
Projected Expenses
Historical data on high dollar expenses
1st Draft Expenditures as a % of total
What is the Gap?
How do we fill the GAP?

3. Revenues

4. Estimated Revenue Budget
Current Year
1st Draft
Category $ %
Tax Levy (including STAR)
$ 6,389,134 $
0.00%
State/Federal Aid **
$15,135,083
$ 15,356,399
$ ,316
1.46%
Other Misc Revenue
$ ,106
$ ,574
$ (84,532)
27.35%
Appropriated Fund Balance
$ ,569 $
$ (462,569)
(100.00%)
Reserves
$ ,220
$ (468,220)
TOTAL REVENUE:
$22,764,112
$ 21,970,107
$ (794,005)
(3.49%)
1st draft tax levy remains flat. The maximum allowable tax levy to remain under the cap is unknown until the Consumer Price Index (CPI) is available. The CPI is expected to be available mid-January 2018.
The State/Federal Aid category includes the following changes:
The first draft includes an increase of $221,316 in building aid which is the result of finalizing our recent capital project.
The first draft does not include an adjustment to expense driven aid categories including BOCES aid and 10-month public excess cost aid. We will include these adjustments in our 2nd draft after the Business Manager has time to analyze the figures.
The first draft does not include an increase in foundation aid or instructional materials aid because the projected state aid figures are not available.
The other misc revenue category is decreasing $84,532 due to increases and offsetting decreases as explained below:
A known PILOT agreement between the St. Lawrence County Industrial Development Agency and St. Lawrence Gas Company, Inc. This PILOT agreement ends after the Fiscal Year. The projected PILOT payment in is increasing $18,468.
Interest and earnings budget is increasing $21,500 from $3,500 due to more favorable rates of return. The total budget of $25,000 is more in line with actual and current figures.
The BOCES refund budget is decreasing $120,000 from $150,000 in If you recall, we knew in advance the BOCES refund in would be significant and therefore, we modified the budget. The reason for the large refund in was due to overpriced special education services in BOCES planned to modify their special education service costs in which will result in a lower refund in The BOCES refund budget is now $30,000.
E-rate service revenue is decreasing because we will no longer see a refund for our phone service costs. The phone service costs were phased out is the last year for e-rate on phone services. The result is a $4,500 decrease in the revenue budget.
You may want to mention the category II funding. I do not have anything in the budget at this point until I have more information. We can spend a maximum of $ per student on Category II projects with aid at 80%. For instance, if we have 1,000 students, we can spend $151,200 and receive $120,960 in reimbursements. This results in a $30,240 local impact to our expenditure budget. The total available funds of $151,200 can be spent in one year or over a maximum of 5 years.
1st draft appropriated fund balance and reserves allocations are $0 to illustrate the first draft budget gap.

5. Tax Levy History NNCS has complied with the tax cap since inception.
This chart shows the approved total tax levy in $ and also the % increase each year for the past 7 years.

6. Tax Levy History

7. Tax Levy History
Graph illustrates the % change in tax levy dollars from year to year. This chart is the same information as the previous chart but excludes the total tax levy in $.

8. Tax Rate History
Graph illustrates the tax rate per thousand from a town assessed at 100%. The tax rate increase from to equates to a 2.21% increase. The tax rate per thousand in dollars is shown on the next graph. So, even though the tax levy increased 2%, the tax rate per thousand increased 2.21%.

9. Tax Rate History
This graph illustrates the % increase/decrease in the tax rate per thousand. The tax levy increased by 2%. The actual tax rate increased 2.21% due to factors such as equalization rates and assessments as determine by local town assessors.
Equalization rate is the total assessed value of a municipality divided by the total market value of the municipality.

10. State Aid History – Foundation Aid Only
Below is the variance per year of actual foundation aid versus full phase-in foundation aid
07-08 – 2,780,191
08-09 – 2,172,897
09-10 – 2,364,195
10-11 – 2,374,822
11-12 – 3,025,961
12-13 – 3,064,236
13-14 – 2,632,755
14-15 – 2,655,623
15-16 – 3,165,122
16-17 – 2,402,664
17-18 – 2,085,542

11. State Aid History
aid is increasing over primarily due to an increase in building aid of $774,000 which resulted from finalizing a capital project, permanently financing the project, and now generating building.
Transportation aid is decreasing approximately $80,526 between to due to a decrease in expenses from to
Excess cost aid is increasing around $81,000, however private excess cost aid is decreasing $105,000 due to a residential enrollment change.
BOCES aid increased from to due to increased costs.
The “other” state aid category is projected to decrease in over due possible reductions in homeless aid. Homeless aid is unknown at this time.

12. State Aid History
This graph shows state aid without building aid and illustrates a steady increase since projected state aid is below the trendline.

13. Revenues - % of Total Budget

14. Expenditures

15. Estimated Expenditure Budget
Expenses:
Current Year
1st Draft
Category $ %
Salaries
$ 8,224,359
$ 8,183,729
$ (40,630)
(0.50)%
Employees Retirement (ERS)
$ ,154
$ ,965
$ ,811
0.81%
Teachers Retirement (TRS)
$ ,962
$ ,934
$ ,972
9.34%
FICA
$ ,996
$ ,503
$ (5,493)
(0.81)%
Health Insurance
$ 5,037,008
$ 5,288,512
$ ,504
5.31%
Other Benefits
$ ,979
$ ,796
$ (25,183)
(11.10)%
BOCES Services
$ 1,985,047
$ 2,012,402
$ ,355
1.34%
Special Education Tuition
$ 2,289,313
$ 2,316,037
$ ,724
1.30%
Utilities
$ ,285
$ ,081
$ ,796
4.55%
Debt Service/Transfers
$ 1,818,326
$ 2,093,921
$ ,595
17.25%
Equipment
$ ,800
$ ,300
$ (8,500)
(5.07)%
Other (contractual, conferences, Supplies)
$ ,883
$ ,306
$ ,423
0.46%
TOTAL EXPENSES:
$ 22,764,112
$23,364,486
$ ,374
1.53%
Assumptions:
Salaries - 3% projected increase to all (all union contracts expire 6/30/2020). The % increase is lower than expected due to 4 teacher retirements, 1 administrative retirement and savings from the CSEA settled contract.
ERS – rate remaining approximately the same at 15%
TRS – rate increasing from 9.8% to between 10.5% and 11%
FICA – rate remaining the same. decrease due to decrease in salaries
Health insurance – premiums are expected to increase 7%. The % increase shown in the chart is less than 7% due to Rider 9 savings from CSEA and additional contributions in from CSEA.
Other benefits – includes worker’s compensation insurance and administration, unemployment insurance, dental/vision district contribution, $1,000 contribution to 403(b) for administration and compensated absences for sick day payout for retiring teachers. This category is decreasing due to a slight decrease in worker’s compensation premiums and a decrease in budgeted retirement incentives and sick time payouts. It is possible the retirement incentives and sick time payouts will decrease further after retirements are known. The deadline to submit intent to retire letters is February 1st.
BOCES Services – assumed a 3% increase until costs are known – waiting on BOCES. Projections are based on current purchased services with unit costs increasing 3%.
Tuition for SWD – assumed a 3% increase in unit cost and used current enrollment projections with adjustments from CSE Office.
Utilities – rates are currently unknown. Initial projections include a 25% increase in diesel expense, gasoline budget remaining the same and a 10% increase in the electricity projection.
Debt service/Transfers – based on amortization schedules for current and new debt. This category is increasing due to an increase in principal and interest payments on the new capital construction bond. There is also a $10,000 increase in interfund transfers to cover the district local share for the summer 4408 special education program. The actual expense in was nearly $50,000. This is now the projected budget amount. The district is responsible for 20% of the 4408 program costs. There is also a $6,500 budget addition to transfer funds to the school lunch program to cover outstanding lunch charges at year end (per policy).
Bus purchases – purchased through the capital fund with bonds issued annually. The only general fund expense is the annual BOND payment under debt service.
Equipment – includes equipment for maintenance, bus garage, fitness center and classroom equipment. There is an $8,500 decrease in equipment due to moving the budgeted expense for the fitness center equipment to the debt service portion of the budget (per the external auditor – it belongs under the debt service portion of budget labeled installment purchase contract).
The other category includes contractual expenses, conferences, supplies – no major changes for the 1st draft.

16. Historical EXPENSE Budget
1st draft budget for is a 1.53% increase over the budget.

17. Employee’s Retirement Expense History
The ERS Plan year runs from April to March annually. 15% is the rate from April 2017 to March The budget includes a projection for the rate from April 2019 to June 2019 of 15%. The rate between to is remaining relatively flat.

18. Teacher’s Retirement Expense History
Teacher’s retirement expense budget is $641,962 in which is 2.82% of the total budget.
st draft budget projection includes a $69,972 increase in the TRS expense over the budget. The increase is due to an increase in the contribution rate.
History of rates:
09-10: 6.19%
10-11: 8.62%
11-12: 11.11%
12-13: 11.84%
13-14: 16.25%
14-15: 17.53%
15-16: 13.26%
16-17: 11.72%
17-18: 9.8%
17-18: 10.5% to 11% (rate is not final) – the 1st draft budget projects the TRS expense based on an 11% rate.

19. Health Insurance Expense History
Premiums are estimated at a 7% increase per Locey & Cahill
Health insurance budget from to is an increase of $251,504 due to the premium increase. The overall increase in health insurance expense is offset by a decrease from CSEA changing to Rider 9 and an increase in their contributions.
All active and retired members are under the lowest cost Rider 9 premium.
Premiums are estimated to increase 7% in

20. History of Special Education Costs (BOCES & Residential Programs)
This graph only illustrates special education costs for students enrolled in BOCES programs or private placements out of district. This does not include in-house costs for students with disabilities. The projected budget for BOCES SWD and private placements is $2,316,037.

21. Expenditures - % of Total Budget
66.19% of the budget is dedicated to staff and faculty salary and benefits.

22. What is the GAP? Projected Revenue Budget $ 21,970,107
Projected Expenditure Budget $(23,364,486)
1st Draft Budget GAP $( 1,394,379)
The budget included $468,220 in reserves and $462,569 in fund balance to balance the budget. Total = $930,789

23. How do we fill the GAP? Reductions in District Spending
Three Options:
Reductions in District Spending
Increase Tax Levy
What is our limit??
Use Reserves and Fund Balance
We will not know our tax levy limit until after the January 16th BOE meeting. We are waiting on
The allowable levy growth factor
Executive budget
Possible pension exclusion – not likely

24. What is Next? 2/6/2018: Budget Work Session with Board of Education
Fund Balance & Reserves
2/8/2018: Supervisor’s Budget Meeting
2/20/2018: Review budget updates at Regular Board of Education Meeting
2/26/2018: Administrative Council Budget Meeting
2/27/2018: Budget Work Session Meeting with Board of Education

25. Questions