1. FY2016 Preliminary Budget Appoquinimink School District July 14, 2015 Presentation

2. What we will cover  Budget process and timeline  Goals  Tax rates  Major changes from last year’s final budget  Preliminary budget  Fund balances Preliminary Budget

3. May/June  Forecast final revenues/expenditures  Meet with schools and departments to discuss upcoming needs  Make Superintendent and Financial Advisory Committee aware of potential major budget issues  Project next fiscal year revenues based on forecasted final revenues/expenditures, draft State budget, and other known factors that may affect the budget Process and timeline

4. NOTE: New fiscal year begins July 1. State pre-loads appropriations in Appoquinimink School District’s “account” (typically 75%) June/July  Draft annual tax warrant  Draft preliminary budget based on final State budget and prior year figures  Preliminary budget and tax warrant reviewed by Financial Advisory Committee (FAC)  Preliminary budget and tax warrant presented to the Board for approval Process and timeline

5.  October/November – unit count finalized by DOE  December/January – balance of State money allocated to districts; prepare final budget  January/February – final budget reviewed by FAC, presented to Board  April through July – if needed, amendments to the final budget are considered by the FAC and Board Process and timeline

6. Monitoring and reporting  Finance Director monitors appropriation balances and expenditure budgets  Payroll staff monitor reports after each payroll disbursement  Finance staff, schools and departments review reports weekly/monthly as applicable  Monthly reporting to FAC, Board, public  Annual audits performed by State Auditor of Accounts (results posted on AoA web site) Process and timeline

7. Goals  Support the District’s mission and goals  Develop a transparent budget document that tells the big-picture story regarding our revenue and expenditure budgets, fund balances, tax rates and revenue, and bonded debt  Build and maintain our reserve Budgetary Goals

8. Tax rates  Operating: no change  Debt Service: -2.0¢ per $100  Match (Minor Capital, Tech, Extra Time, Reading and Math Specialists): -1.0¢ per $100 overall  Tuition: +3.6¢ per $100  Per penny tax revenue is up $6,871 ($198,701) Tax rates

9. In general  OEC (Other Employment Costs) went up from 30.08% of payroll to 30.48%, a 1.3% increase  Projected enrollment change is +230 students (+2.3%)  Projected inflation for budgeting purposes is +2.0% (CPI-All for Phila-Wilm-Atl City was +0.0%, Wash-Balto was +0.4%; without energy and food, Phila-Wilm-Atl City was +2.0%) Major changes from last FY

10. Revenue Budget Projections  Div I salaries (State formula salaries) – $2.7M increase over FY15 actual based on steps, OEC and benefit cost increases, and enrollment growth  Div II, Div III and Ed Sustainment increased based on enrollment growth. Ed Sustainment increased $1 million statewide and ASD will receive a share of it  State Transportation – decreased due to lower fuel costs Major changes from last FY

11.  Total local tax revenues increased due to increase in assessment base ($6,871 per penny) and 0.6¢ per $100 overall tax rate increase  Federal funds total is up 3.3% (preliminary allocations) Major changes from last FY

12. Expenditure Budget Projections  Div I, Federal, Trans – adjusted to match revenue  99940400/99999 Div III/Local Salaries – increased $2.65 million (4.6%) due to local raises, steps, OEC rate increases, and enrollment growth  Tuition - $765K increase due to local raises, OEC rate increase, increased needs-based special education enrollment, increased cost of out-of- district placements Major changes from last FY

13.  One-time budget line for Technology ($682K) to cover costs of infrastructure (wired and wireless) for the one-to-one iPad project and the bring your own device (BYOD) project, for some urgently needed hardware replacements (computers, printers, servers etc.), and a visitor sign-in system at each school Major changes from last FY

14. Match Tax Revenue and Associated Expenditures  To increase transparency, the four match tax components were split out:  Minor Capital Improvements (MCI)  Technology Match  Extra Time Match  Reading and Math Specialists Match Major changes from last FY

15. FY2016 Revenue Budget State Funds (Div I/II/III/Other)84,229,194 Minor Capital Projects State Share722,000 Local Funds Current Operations Tuition Match Taxes Debt Service Choice and Charter (payments) Other Local 18,856,845 8,503,197 1,764,561 6,194,250 (1,273,800) 3,732,000 Federal Funds2,951,214 Construction (State + Local)0 TOTAL125,541,388

16. FY2016 Revenue Budget StateLocalFederal FY 201672.8%24.7%2.5% FY 201572.9%24.5%2.6% FY 201471.8%25.9%2.3% FY 201374.9%22.9%2.2% FY 201272.6%23.1%4.3% FY 201172.6%23.7%3.7% Sources of Revenue (excludes Major Capital, Debt Service, Local Cafeteria)

17. FY2016 Expenditure Budget Operating Budget106,389,843 Tuition Special Placements Needs-Based 2,500,000 6,520,000 Match Tax Funds (excluding Minor Cap)1,110,000 Local Cafeteria2,900,000 Major/Minor Capital Improvements Major Capital Projects Minor Capital (State and Match) 0 1,203,333 Local Debt Service5,848,288 TOTAL126,471,464

18. Operating Fund Starting fund balance July 1 (unencumbered)8,416,227 Projected surplus (or shortfall) of revenues over expenditures, FY16 (414,590) Projected final fund balance (unencumbered) 8,001,637 This is our “local carryover” amount. It includes $4,500,000 in our Reserve Appropriation. Fund balances

19. Local Debt Service Fund Starting fund balance July 1 (unencumbered) 2,899,853 Projected surplus (or shortfall) of revenues over expenditures, FY16 354,962 Projected final fund balance (unencumbered) 3,254,815 Fund balances

20. Tuition Fund Starting fund balance July 1 (unencumbered) 824,730 Projected surplus (or shortfall) of revenues over expenditures, FY16 (660,603) Projected final fund balance (unencumbered) 164,127 Fund balances

21. Minor Capital Projects Match Fund Starting fund balance July 1 (unencumbered) 69,267 Projected surplus (or shortfall) of revenues over expenditures, FY16 127,608 Projected final fund balance (unencumbered) 196,875 Fund balances

22. Reading and Math Specialists Match Fund Starting fund balance July 1 (unencumbered) 61,941 Projected surplus (or shortfall) of revenues over expenditures, FY16 (7,757) Projected final fund balance (unencumbered) 54,184 Fund balances

23. Technology Match Fund Starting fund balance July 1 (unencumbered) 10,741 Projected surplus (or shortfall) of revenues over expenditures, FY16 (4,455) Projected final fund balance (unencumbered) 6,286 Fund balances

24. Extra Time Match Fund Starting fund balance July 1 (unencumbered) 525,283 Projected surplus (or shortfall) of revenues over expenditures, FY16 (80,241) Projected final fund balance (unencumbered) 445,042 Fund balances

25. Cafeteria Fund Starting fund balance July 1 (unencumbered)420,876 Projected surplus (or shortfall) of revenues over expenditures, FY16 (258,500) Projected final fund balance (unencumbered)162,376 Fund balances

26. FY2016 Preliminary Budget  Questions?