1. Frontier Central School District 2014-2015 BUDGET WORKSHOP Part I Board of Education Meeting Tuesday, January 21, 2014 mac2014budget120901

2. Introductory Statement Interim Superintendent : Paul G. Hashem 2 mac2014budget120902

3. Frontier must present the budget in 3 component parts: 1.Program component 2.Capital component 3.Administrative component 3 mac2014budget120903

4. Component 1-Program *  All salaries & benefits of instructional faculty  In-service training  Programs for students with disabilities  Occupational Education  Library & Audiovisual  District Transportation Services & Bus Garage  Legal Services  Computer-assisted instruction  Guidance  Attendance  Health Services  Psychological & Social Work Services  Co-curricular activities  Interscholastic Athletics  Transfers to school lunch * This list is not all inclusive, but addresses the majority of topics of the component. 4 mac2014budget120904

5. Component 2-Capital *  All Transportation, capital, debt service and lease expenditures  Annual debt service for all facilities financed by bonds  Judgments from tax certiorari or payments or settlements of court judgments or administrative orders  Construction costs or building improvements  All expenditures associated with custodial salaries and benefits, service contracts, utilities, etc.  Maintenance, operation, and repair of school facilities  School bus purchases/leases  Rental and maintenance operations * This list is not all inclusive, but addresses the majority of topics of the component. 5 mac2014budget120905

6. Component 3-Administrative *  All Superintendent salary and benefits  All office and administrative salaries and benefits (including central office & building administrators)  All expenditures of the operation of the School Board  District Clerk & district meetings  Treasurer  Purchasing  Evaluations (APPR)  Legal services not covered in programming  Auditing  Records management  Public Information Services  Central printing & mailing  Curriculum development  Supervision of all students  Planning and research  Data processing  Personnel * This list is not all inclusive, but addresses the majority of topics of the component. 6 mac2014budget120906

7. Administrative Efficiency Source: Business First 10/3/13 7 Frontier #10 of 429 !! mac2014budget120907

8. Administrative Efficiency Source: Business First 10/3/13 8 Frontier #10 of 429 !! Only 2.1% separates #1-#10 mac2014budget120908

9. Business First Rankings for WNY Administrative Efficiency at Frontier Central School District 9 mac2014budget120909 YearRank 2008-091 2009-101 2010-112 2011-121 2012-132

10. 2014-2015 REVENUE BUDGET DRAFT FRONTIER CENTRAL SCHOOL DISTRICT DRAFT PROPERTY TAX CAP CALCULATION- A 2013-142014-15VARIANCE PRIOR YEAR TAX LEVY$33,782,538$34,969,020$1,186,482 TAX BASE GROWTH FACTOR1.0085$34,069,6901.0070$35,213,803$1,144,113 GROWTH FACTOR IS PROVIDED BY NYS PLUS: PAYMENTS IN LIEU OF TAXES RECEIVABLE DURING PRIOR YEAR$602,359$604,359$2,000 MINUS: TAXES LEVIED FOR EXEMPTIONS DURING PRIOR YEAR$655,654$681,784$26,130 LOCAL SHARE OF CAPITAL, TRANSPORTATION VEHICLE DEBT ADJUSTED PRIOR YEAR TAX LEVY$34,016,395$35,136,378$1,119,983 ALLOWABLE LEVY GROWTH FACTOR1.0200$34,696,7221.014648$35,651,056$954,334 GROWTH FACTOR DETERMINED BY NYS MINUS: PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING YEAR$529,734$616,446$86,712 ESTIMATED PILOTS FOR 2014-2015 FISCAL YEAR PLUS: AVAILABLE CARRYOVER (IF ANY)$0 TAX LEVY LIMIT$34,166,988$35,034,610$867,622 10 mac2014budget120910

11. 2013-142014-15VARIANCE ALLOWABLE GROWTH BEFORE EXEMPTIONS$384,450$65,590($318,861) PERCENTAGE INCREASE BEFORE EXEMPTIONS1.1380%0.1876%(0.9504%) EXEMPTIONS: CAPITAL TAX LEVY$83,480$641,313 LOCAL SHARE OF CAPITAL, TRANSPORTATION VEHICLE DEBT ERS INCREASE$0 DID NOT GO ABOVE 2% SO NO EXCLUSION (20.9 % TO 20.1%) TRS INCREASE$718,552$0 PRESENTLY INCREASE IS ESTIMATED AT 1.50% (16.25% TO 17.75% INCREASE OF 1.50% LESS 2% = NO EXCLUSION) TOTAL$802,032$641,313($160,719) MAXIMUM ALLOWABLE LEVY$34,969,020$35,675,923$706,903 THE DISTRICT WOULD BE ABLE TO INCREASE THE LEVY BY THE AMOUNT LISTED AND NEED ONLY A FIFTY-ONE PERCENT MAJORITY$1,186,482$706,903($479,579) THE ALLOWABLE PERCENTAGE INCREASE WOULD THEN BE:3.5121%2.0215%(1.4906%) 2014-2015 REVENUE BUDGET DRAFT FRONTIER CENTRAL SCHOOL DISTRICT DRAFT PROPERTY TAX CAP CALCULATION- B 11 mac2014budget120911

12. Tax Cap Comparison – Frontier Central School District 2013-14 Actual Tax Levy 2014-15 Draft 2% Tax Levy CalculationDifference Allowable Levy$34,969,020$35,675,923$706,903 Increase in Levy$1,186,482$706,903($479,579) Allowable % Increase3.5121%2.0215%(1.4906%) Tax Base Growth Factor.85%.70%(.15%) Allowable Growth Factor 2.00%1.4648%(.5352%) 12

13. Draft Revenue Projections For 2014-15 Fiscal Year 2013-14 Budget 2013-14 Projected 2013-14 Budget to 2013-14 Projected 2014-15 Budget DRAFT 2013-14 Projected to 2014-15 Budget SUMMARY OF REVENUES Real Property Tax34,969,02034,976,5787,55835,675,923699,345 State Aid28,013,89827,857,097(156,801)27,410,941(446,156) Erie County Sales Tax 5,327,7505,333,1635,4135,369,42936,266 Miscellaneous2,293,9842,552,208258,2242,349,152(203,056) Appropriated Fund Balance/Reserves 2,611,075 01,250,000(1,361,075) Total Revenues73,215,72773,330,121114,39472,055,445(1,274,676 ) 13 mac2014budget120913

14. How much does it cost?? Then & Now mac2014budget120914

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18. * Estimate is statistically different from estimate for the previous year shown (p<.05). SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2013. Average Annual Premiums for Single and Family Coverage, 1999-2013 mac2014budget120918

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20. General Inflation Examples: 20 mac2014budget120920

21. EMPLOYEE SALARIES & BENEFITS  Total 2013-14 Budget :$73,215,727  Total 2013-14 Budgeted : Salaries & Benefits$56,414,668  What percentage of the total Budget is Salaries & Benefits? 77% 21 mac2014budget120921

22. Changes in NYS Retirement Rates Over Time 22 mac2014budget120922

23. Focus Questions To Consider For Areas of Possible Reductions: What is essential to Frontier’s District Mission? --Education of our children!! Back to Basics? What practices/programs initiated in the past can no longer be sustained in their current format and associated costs? What must be altered / eliminated as we move forward? ANY questions/comments to Board members from community members or stakeholders on the 2014-15 budget should be directed to Mr. Hashem, Interim Superintendent. 23 mac2014budget120923

24. Board Member Budget Worksheet Areas Suggested For Possible Reductions Programs: ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ Programs: ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ 24 Once we have all our Programs listed, each Board member should rank their top ten to consider for possible reductions. Please rank them in 1 – 10 order with 1 being first choice for possible reduction and so on. mac2014budget120907