1. FY11 PRELIMINARY BUDGET LINCOLN-SUDBURY REGIONAL SCHOOL DISTRICT Presented to the School Committee December 9, 2009

2. BUDGET GUIDELINES LINCOLN -.5% No Override SUDBURY 4.5% Override FY’10 Operating FY’10 Pensions/Insurance Total FY’10 Budget $ 19,982,076 $ 3,718,484 $ 23,700,560 Increase / (Decrease) ($ 99,910) $ 1,066,525 FY’11 Operating FY’11 Pensions/Insurance Total FY’11 Budget $ 19,882,166 $ 3,778,105 $ 23,660,271 $ 24,767,085 Revised 12/17/20092 Level Staff based on 4.5% Sudbury Guideline $ - 939,743$ + 167,071

3. BUDGET ASSUMPTIONS Level Staff Moved staff on steps and applied negotiated cost of living increase and other contract provisions Projected costs for utilities, Special Education, health insurance and other contracts - as of December 9, 2009 Departmental and other expenses at 4.5% Athletic, Activity and other Fees continued at same amounts Revised 12/17/20093

4. ENROLLMENTS FY’10 enrollment was projected to be 1,640 (26 students over FY’10 actual). Increased class sizes resulted in students leaving for private school FY’11 projection based on 10-year average = 1,645 FY’11 projection is an increase of 31 students over FY’10 October 1 actual enrollment of 1,614 To offset this enrollment increase and maintain FY’10 class sizes, 1.6 FTEs are needed Revised 12/17/20094 GradeFY’10 ActualFY’11 ProjChange 9423436+13 10409420+11 11390405+15 12392384-8 Total1,6141,64531

5. BUDGET COMPONENTS FY’11 PRELIMINARY BUDGET Revised 12/17/20095

6. SALARIES $575,671 increase Step Increases Negotiated cost of living of 1.75% for all teachers Additional 1.0% for those at top step Master Teacher Stipend subject to years of service and performance All other staff adjusted similarly Revised 12/17/20096

7. SALARIES $575,671 increase CATEGORYTEACHERS ED’L SUPPORT ADMIN SUPPORT BUILDINGS & GROUNDS ADMINI- STRATION Steps$230,584$15,087$10,035$2,825 COLA$251,386$18,567$17,754$11,943$23,324 Longevity$6,880 Degrees$23,791-1,300 Stipends$4,500$518$120$550$9,136 Retirements (net)$-43,156$-20,000 Retire Incentive$-94,523 Staff Exchange$107,650 TOTAL$487,112$34,172$27,909$15,318$11,160 % INCREASE4.3%3.9%3.1%2.6%1.0% Revised 12/17/20097

8. PENSIONS & INSURANCES $352,957 increase Middlesex Retirement increase of 4.5% Unemployment reduced to prior year levels assuming no layoffs Workers Compensation level-funded based on historical premium costs FICA-Medicare tax increased to align with actual costs Property/Liability insurances only up 2.5% due to participation in MIIA programs for credit and review of coverages Revised 12/17/20098

9. PENSIONS & INSURANCES $352,957 increase Health Insurance Cost Containment Measures Negotiated 5% change in employer-employee contributions from 75%-25% to 70%-30% Instituted “rate saver” plans with higher co-pays and deductibles but lower premiums Negotiated incentive program to make less expensive plans more attractive Adopted Section 18 requiring eligible retirees to enroll in Medicare Revised 12/17/20099

10. HEALTH INSURANCE COST CONTAINMENT RESULTS Revised 12/17/200910

11. PENSIONS & INSURANCES $352,957 increase Health Insurance Budget Assumptions Health Insurance for active employees estimated at 12% premium increase Allowance for additional plans to accommodate qualifying events Retiree Medicare supplement plan rates fixed for first half of FY’11; estimated 5% increase for second half Additional allowance for plans for known retirements Medicare Part B penalty included Revised 12/17/200911

12. MANDATES $268,007 increase Special Education placement costs up $322,798 (13.4%) over FY’10 budget with a net of 6 new placements Special Education transportation is down $51,815 (9.6%) Other services reduced to reflect anticipated needs Section 504 services separated out from Special Education and estimated at $8,000 Revised 12/17/200912

13. UTILITIES $55,389 decrease Electricity is major utility for L-S and conservation and efficiency measures have been implemented Favorable rates locked in and projected costs result in $46,000 (6.5%) decrease Natural gas rates locked, resulting in $3,000 (4.5%) decrease Telephone costs estimated at $9,000 (15.2%) decrease based on history Revised 12/17/200913

14. CONTRACTUAL OBLIGATIONS $19,691 increase CATEGORY$ INCREASE% INCREASE Regular Transportation$13,8913.0% Cleaning Services$-0-0.0% Course Reimbursement$-0-0.0% Audits$ 5,00033.3% Conference/Travel$ 8005.1% Revised 12/17/200914

15. OPERATIONAL REQUIREMENTS $6,501 increase Includes banking services; network maintenance; student, financial, library and computer software maintenance; legal services; physician services; bid and personnel advertising; postage; memberships; graduation/cum laude/orientations; and waste water treatment plant maintenance Overall a 2.3% increase in all expenses Revised 12/17/200915

16. DEPARTMENTS $112,877 increase Instructional budgets for textbooks, materials, supplies, equipment, conferences, etc. are up 6.5% The actual dollar amount is almost equal to FY’05 budgeted and expended amounts, but with 142 more students projected Revised 12/17/200916

17. DEPARTMENTS $112,877 increase Other departments – Student Services, District Technology, and Athletics/Activities increased 4.5% or less The Administration budget includes an amount for a Superintendent/Principal search Buildings & Grounds is an 11% increase Revised 12/17/200917

18. CONTINGENCY $43,241 decrease Contingency was originally budgeted at $30,000 in FY’10 and also in FY’11 Savings resulting from all final hiring and budget adjustments resulted in an additional $210,312 in the FY’10 Contingency account The unbudgeted balance of $167,071 in the FY’11 budget is currently in Contingency Revised 12/17/200918

19. REVENUE OFFSETS $170,549 increase CATEGORY$ INCREASE% INCREASE Circuit Breaker$207,09445.0% Tuitions from Non-Residents $ -45,000-50.0% Athletic Fees $300 per sport $ 9,6004.0% Activity Fees $65 per student $ 00.0% Parking Fees $300 per year $ 00.0% Building Use$ -1,652-2.4% METCO Grant Offset$ 00.0% Library Copier Use Fees$ 507 Revised 12/17/200919

20. BUDGET COMPONENTS 4.5% Budget Expenses Salaries$15,753,695 Pensions & Insurance$3,777,194 Mandates$3,363,728 Utilities$815,046 Contractual Obligations$771,389 Operational Requirements$284,806 Less: Fees & Other Revenues$-1,269,691 Total Fixed Costs$23,496,167 Revised 12/17/2009 20

21. BUDGET COMPONENTS FY’11 Budget at 4.5%$24,767,085 Less: Fixed Costs- 23,496,167 Balance$ 1,270,918 Less: Department Requests- 1,073,847 Less: Contingency- 30,000 Balance Available$ 167,071 Revised 12/17/2009 21

22. PRELIMINARY BUDGET PRIORITIES FY’11 PRELIMINARY BUDGET Revised 12/17/200922

23. PRELIMINARY BUDGET PRIORITIES Restore House or.50 Administrator $54,000 – 0.50 – $ 165,917 2.00 FTE Teachers$ 120,832 2.00 FTE Guidance Counselor$ 60,416 1.00 FTE Library$ 20,569 0.17 FTE Nursing Services$ 10,026 0.20 FTE Peer Mediation$ 15,104 0.25 FTE Peer Leader/Tutor$ 15,104 0.25 FTE Tech Integration Spclst$ 30,208 0.50 FTE GRAND TOTAL $326,759 - $438,176 4.87 - 6.37 FTE Revised 12/17/200923

24. ASSESSMENT TO THE TOWNS FY’11 PRELIMINARY BUDGET Revised 12/17/200924

25. PRELIMINARY ASSESSMENT INFORMATION Apportionment ratio is a shift of.15% to Lincoln Chapter 70 state aid unknown at this time Anticipate Regional Transportation to be level to the reduced FY’10 amount Estimated Receipts lowered to reflect anticipated lower Medicaid reimbursement Reapportionment lower based on significant loss of interest income due to the downturn in the economy, reductions to State Aid in FY’09, and lower unexpended funds in FY’09 Debt Service, net of MSBA reimbursement and bond premiums, decreasing by $68,000 Revised 12/17/200925