1. 2015-2016 Budget Proposal BOARD OF EDUCATION MEETING TUESDAY, APRIL 14, 2015 2015-2016 BUDGET DEVELOPMENT

2. 2015-2016 Proposed Budget Presentation Overview  Board of Education Budget Development Goals  Timelines  Work to Date  Overview of Presentation 2015-2016 BUDGET DEVELOPMENT

3. Board of Education Budget Development Goals 1.Keep present tax levy at or below the cap 2.Preserve and improve core instructional programming to promote student achievement 3.Provide a foundation for future budgets 4.Maintain co-curricular opportunities (clubs, athletics, fine & performing arts) 5.Maintain the physical plants 2015-2016 BUDGET DEVELOPMENT

4. Fundamental Problem For the last five years Frontier expenses have exceeded its revenues. Frontier has used its savings account (fund balance) to make up the difference. 2015-2016 BUDGET DEVELOPMENT $26 million withheld by New York GEA 39 positions eliminated 56 student clubs eliminated Athletic reductions 6 teams & 125 students

5. Consequences of Fundamental Problem Student programming Student services School culture Buildings in disrepair Cash flow for summer obligations Job layoffs Moody credit downgrade increases interest rate De-stabilize tax rates & property values 2015-2016 BUDGET DEVELOPMENT

6. Stakeholders Budget Input  Sell District vacant property and FEC Building.  Outsource food service, transportation, and/or grounds.  Extend transportation pickup distance.  Eliminate and/or reduce professional growth funds.  Seek green energy grants.  Charge students a fee to participate in a musical or play; play an instrument; be a member of a chorus; play in a sport and/or intramurals; use of athletic facilities; be in a club.  Go paperless or set a goal of 80% reduction in paper.  Eliminate sick bank and/or sick buy back. 2015-2016 BUDGET DEVELOPMENT

7. Board of Education Budget Development Timeline 1.Determined budget goals 2.Determined 2015-2016 expenses based upon a program continuation model, i.e. no new programming. 3.Determined property levy tax cap at 2.12% 4.Determined potential revenue scenarios based upon Gov. Cuomo’s proposed budget with best scenario presenting $4,491,790 of expenses exceeding revenue. 5.March 24 th Board reviewed $1,550,619 in reductions and retirements, leaving a $2,941,171 gap. Increasing Middle School teacher staff would be an additional $317,000. 2015-2016 BUDGET DEVELOPMENT

8. 6.March 30 th NYS Budget adopted and 2015-16 aid projections were made available. 7.April 7 th Fund Balance review determines an estimate of $803,650 assigned and $1,522,502 unassigned fund balance. 8.April 14 th Board reviews and discusses budget presented by Superintendent. 9.April 21 st Final 2015-16 Budget adopted by the Board of Education. 2015-2016 BUDGET DEVELOPMENT Board of Education Budget Development Timeline

9. 2015-2016 Budget Summary: Expenditures $77,032,339 2015-2016 BUDGET DEVELOPMENT  3.72% increase over 2014-2015 budget  16.09 fewer FTE positions, budget to budget  4 additional FTE teachers at the Middle School  Print shop transition to copy center  10% reduction in materials & supplies

10. Employee Benefits  New York State Retirement System Contributions in 2015- 2016 Employees’ Retirement System (ERS) rate decreases from 20.1% to 18.2% Teachers’ Retirement System (TRS) rate decreases from 17.53% to 13.5% 2015-2016 BUDGET DEVELOPMENT

11. Capital Budget 2014-20152015-2016$ Change% Change Bus Purchases$867,290$881,353+$14,063+1.6% Debt Service$3,854,936$4,574,110+$719,174+18.7% 2015-2016 BUDGET DEVELOPMENT

12. Revenue: Major Sources  State Aid  Property Tax  Sales Tax  Miscellaneous 2015-2016 BUDGET DEVELOPMENT

13. Summary of Revenues 2015-2016 BUDGET DEVELOPMENT Summary of Revenues 2012-2013 Budget 2013-2014 Budget 2014-2015 Budget 2015-2016 Budget Real Property Tax$33,782,538$34,976,578$36,227,031$36,996,183 State Aid$26,967,702$27,825,430$28,576,205$31,452,434 Erie County Sales Tax$5,296,875$5,373,017$5,458,741$5,375,000 Miscellaneous$3,106,512$2,630,920$2,630,424$2,405,072 Appropriated Fund Balance$1,723,099$438,036$392,513$803,650 Total$70,876,726$71,243,981$73,284,914$77,032,339

14. Revenue: Gap Elimination Adjustment 2015-2016 BUDGET DEVELOPMENT Frontier Gap Elimination Adjustment 2010-2011 $6,312,746 2011-2012 $6,208,498 2012-2013 $5,335,138 2013-2014 $4,658,519 2014-2015 $3,553,328 Subtotal $26,068,229 2015-16 Proposed $1,299,327 Total $27,367,556

15. Revenue: Property Tax 2014-15 Actual 2015-16 Budget $ Change% Change Property Tax Levy $36,227,031 $36,996,183 $769,152 2.12% Payments in Lieu of Taxes (PILOT) $668,291 $677,739 $9,448 1.41% Interest on Tax Collections $2,529 $2,400 ($129) (5.1%) Total Property Tax Items $36,897,851 $37,676,322 $778,471 2.11% 2015-2016 BUDGET DEVELOPMENT

16. Original budget appropriation of Fund Balance to balance the budget 2015-2016 BUDGET DEVELOPMENT YEARAMOUNT 2011-2012$5,731,909 2012-2013$2,811,790 2013-2014$2,611,075 2014-2015$1,464,188 2015-2016$ 803,650

17. Fund Balance & Reserves used to support budget 2012-13 Actual 2013-14 Actual2014-15 Est Actual 2015-16 Budget Total Budget $72,285,048 $73,215,727 $74,271,938 $77,032,339 Total Revenues $69,153,627 $70,805,945 $72,892,401 $76,228,689 Appropriated Fund Balance/Reserves carried over from prior year $1,723,099 $438,036 $392,513 $803,650 Revenue + Fund Balance & Reserves $70,876,726 $71,243,981 $73,284,914 $77,032,339 Appropriated Fund Balance & Reserves as % of Budget 2.4%.6%.5% 1% 2015-2016 BUDGET DEVELOPMENT

18. Tax Rate 2014-15 Actual 2015-16 Budget $ Change% Change Tax Rate/$1000 Assessed Value $26.03 $26.52 $.49 1.9% 2015-2016 BUDGET DEVELOPMENT Tax rate is based on preliminary assessed valuation

19. Historical Perspective 2010-112011-122012-132013-142014-152015-16 School Budget $73,023,152$74,625,064$72,285,048$73,215,727$74,271,938$77,032,339 Tax Levy $31,850,000$32,889,500$33,778,041$34,969,020$36,227,031$36,996,183 Tax Rate $23.29 Hamburg $23.95 Hamburg $24.44 Hamburg $25.18 Hamburg $26.03 Hamburg $26.52 Hamburg $21.86 Eden $21.17 Eden $22.22 Eden $22.13 Eden $23.02 Eden $23.46 Eden 2015-2016 BUDGET DEVELOPMENT

20. Budget Scenario The 2015-16 budget being proposed is a 2.12% property tax levy increase. If the budget is defeated there can be a revote. If the second vote results in a defeat then the levy is frozen at the previous levy. This would result in an additional reduction of $769,152. WHAT DOES THIS MEAN? There would be additional teachers and staff cut, elimination of clubs and sports, no equipment purchases, and institute use of facilities fee. i.e. Girl & Boy Scouts, PTAs, etc… 2015-2016 BUDGET DEVELOPMENT