1. 2015-2016 Budget Information

2. 1 OUR School District…OUR Children This helps to maintain and increase property values We achieve this through a serious and balanced approach to year-round fiscal responsibility Excellent and Award-winning Educational Programs

3. 2 Budget Process  At all times during the process, the goal is to maintain the highest quality of excellence in our educational program for our students as possible. Our students’ needs come first!

4. Executive Summary 78% of the District’s revenue is generated at the local level. 92% of the local revenue is from annual real estate taxes. The average annual tax bill will increase by $91. The Act 1 Index for the District is 1.9%. The 2015-2016 tax increase will not exceed 1.9%. Rose Tree Media continues to have one of the lowest millage rates in Delaware County. Over the past five years, the District has had the third lowest millage rate. Recent tax appeals have been a challenge. However, potential future tax growth could be in the near future as a result of the transformation of the Granite Run mall and property developments in Middletown and Edgmont townships. Salaries and benefits comprise 70% of District expenditures. The PSERS retirement rate will increase to 25.84% from the current rate of 21.40%. The budget includes the addition of a.2 Chinese teaching position,.4 music teaching position, three elementary teaching positions, one special education teaching position and one special education assistant position due to increased enrollment. It also includes the reduction of a maintenance supervisor position and a reduction in salaries as a result of an early retirement incentive program. The District has enrolled in a high deductible medical health care plan in an effort to reduce costs. A new four year teacher’s contract was approved in 2014-2015 as well as a one year support staff contract. The addition of CNG buses to the District’s fleet will reduce costs and provide a cleaner environment for everyone in the community. The District continues to look for ways to improve efficiencies and cut costs.

5. Sources of Revenue Revenue is comprised of four sources: local, state, federal and fund balance.  Local revenue sources include real estate taxes, Per Capita taxes, tuitions, earnings on investments and miscellaneous revenue.  State revenue sources include state subsidies for Basic Education Funding, Special Education, and Transportation, State Property Tax Relief, Reimbursement for Social Security and Retirement payments.  Federal revenue source consists of Title I & II and ACCESS funds that have restricted uses.  Fund balance is the difference between assets and liabilities and results when revenues are greater than expenditures. It’s often referred to as a savings account, but does not consist of only cash.

6. The Act 1 Index The Act 1 Index is a result of the Taxpayer Relief Act of 2006, which established limits on tax increases. The Index is calculated based on the percentage of increase in the State Wide Average Weekly Wage (SAWW) and the percentage increase in the national Education Cost Index (ECI). The SAWW is determined by the Department of Labor and Industry in the same manner as the Unemployment Compensation Law and it is calculated on the previous calendar year. The ECI is also based on the previous 12-month period beginning July 1 st through June 30 th using Elementary and Secondary school data reported by the Bureau of Labor and Statistics. *SAWW calculation changed by Act 6 of 2011 to a 36-month from 12-month Fiscal Year 15/16 14/15 *13/14 12/13 11/12 10/11 09/10 08/09 07/08 06/07 SAWW $919 $898 $875 $872 $855 $847 $825 $788 $756 $735 ECI 121 119 117 116 114 112 109 105 101 97 SAWW % + 2.4% 2.6% 2.0% 2.1% 0.9% 2.7% 4.6% 4.3% 2.8% 4.2% ECI % + 1.4% 1.6% 1.4% 1.3% 1.9% 3.0% 3.6% 4.5% 4.0% 3.5% Base Index 1.9% 2.1% 1.7% 1.7% 1.4% 2.9% 4.1% 4.4% 3.4% 3.9%

7. Revenue Act 1 Index vs. RTMSD Increases 1.7 0%

8. Delaware County School District Proposed Mills Ranked by Mills - June 2014 For 2014-2015 7 Mills DistrictRankIncr % Incr # 14/15 13/14 12/13 William Penn153.00%1.230042.290041.0600 Wallingford-Swarthmore142.08%0.832540.944540.112039.3340 Ridley130.32%0.125039.250039.125038.2500 Chichester121.00%0.386839.070838.684038.3000 Southeast Delco113.00%1.118538.403437.284936.8246 Upper Darby102.30%0.778034.593033.815032.8500 Interboro91.50%0.494133.434732.940632.2000 Garnet Valley81.87%0.552530.094029.541529.0550 Springfield72.25%0.660429.960429.300028.7300 Haverford Twp.63.58%0.990828.669227.678426.7305 Chester Upland513.55%3.400028.490025.090024.4300 Penn-Delco42.50%0.631025.907025.276024.5490 Rose Tree Media31.84%0.423223.367722.944522.6143 Radnor20.00%0.000021.7122 21.8227 Marple Newtown10.00%0.000017.6839 17.2199 County Averages2.59%0.7749 31.5913 30.816530.2646

9. Delaware County School District Proposed Mills Ranked by Percentage - June 2014 for 2014-2015 8 Mills DistrictRankIncr %Incr #14/1513/1412/13 Chester Upland1513.55%3.400028.490025.090024.4300 Haverford Twp.143.58%0.990828.669227.678426.7305 Southeast Delco133.00%1.118538.403437.284936.8246 William Penn123.00%1.230042.290041.0600 Penn-Delco112.50%0.631025.907025.276024.5490 Upper Darby102.30%0.778034.593033.815032.8500 Springfield92.25%0.660429.960429.300028.7300 Wallingford-Swarthmore82.08%0.832540.944540.112039.3340 Garnet Valley71.87%0.552530.094029.541529.0550 Rose Tree Media61.84%0.423223.367722.944522.6143 Interboro51.50%0.494133.434732.940632.2000 Chichester41.00%0.386839.070838.684038.3000 Ridley30.32%0.125039.250039.125038.2500 Radnor20.00%0.000021.7122 21.8227 Marple Newtown10.00%0.000017.6839 17.2199 County Averages2.59%0.774931.591330.816530.2646

10. Assessment – Ten Year History

11. Revenue Budget Comparison 14/15 15/16 Major ObjectBudget Amount $ Incr/Decr% Incr/Decr Local 69,991,873 70,871,407 879,4141.26% State 13,155,632 14,177,6391,022,1277.77% Federal 664,100 627,500 -36,600-5.51% Fund Balance 3,502,652 4,565,4591,062,80730.34% Total 87,314,257 90,242,0052,927,7483.35%

12. Revenue Summary

13. Federal Revenue Federal SourceBudget Amount% of Total Title I 225,000 36% Title II 100,000 16% Access 302,500 48% 627,500 100%

14. State Revenue State SourceBudget Amount% of Total Basic Education Subsidy 2,707,966 19.10% Special Education Funding 1,800,000 12.70% Transportation 1,200,000 8.46% Property Tax Relief 1,633,131 11.52% Social Security Subsidy 1,486,81410.49% Retirement Subsidy 5,022,12835.42% Other 327,6002.31% 14,177,639 100.00%

15. Local Revenue Local SourceBudget Amount% of Total Real Estate Tax 65,402,28792.28% Transfer Tax 900,0001.27% Delinquent Taxes 1,500,0002.12% Current Per Capita 364,0000.51% Tuition 1,200,0001.69% Earnings on Investments 60,0000.08% Rentals/Other 1,445,1202.04% 70,871,407100.0%

16. 15  1 millage point (mill) is equal to approximately $2.79 million  Act 1 Index is 1.9%  2013-2014 Homestead exemption $211  2014-2015 Homestead exemption $213  2015-2016 Homestead exemption $217  Average homeowner assessment is $206,875  Average homeowner tax bill in 2015-2016 is $4,925  Increase in average homeowner tax bill for 2015-2016 is $91  The use of $4.5 million in fund balance  The Increase in state revenue was due to the rising PSERS rate, however other state revenue was level funded.  Decrease in assessment value due to tax appeals Key Facts and Figures of the Revenue Budget. -- Key Points --

17. 16 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Functions  1000 Instruction-regular, special, vocational, alternative education programs and the Delaware County Community College  2000 Support Services-guidance, administration, student health, business, operations and maintenance, student transportation, staff and technology services  3000 Operations of Non-Instructional Services-athletics, student activities, and community services  5000 Other Expenditures and Financing Uses-debt service, fund transfers, and budgetary reserve Expenditure Budget for 2015-2016 is $90,242,005

18. Expenditure Comparison by Function 14/1515/16$% Expense FunctionBudget Amount Incr/Decr Instructional Programs 47,559,621 50,086,8602,527,2395.31% Instr Support Svcs 7,723,263 7,981,950258,6873.35% Admin 4,329,018 4,351,13022,1120.51% Pupil Health 730,050 773,40143,3515.94% Business Svcs 1,181,274 1,234,09152,8174.47% Opn & Maint 7,719,720 7,742,88723,1670.30% Transportation 5,488,138 5,518,41230,2740.55% Central Support Svcs 1,055,662 1,076,93821,2762.02% Student Activities 1,483,352 1,565,10481,7525.51% Debt Service 8,571,806 8,717,879146,0731.70% Other Expenses 1,472,353 1,193,353-279,000-18.95% Total 87,314,257 90,242,0052,927,7483.35%

19. Expenditure Comparison by Function

20. 19 In accordance with the Pennsylvania Department of Education expenditures are categorized by objects and functions. Objects  Salaries - wages for all school district employees  Benefits - health care, tuition reimbursement, retirement and social security  Contracted Professional Services – tuition to the Intermediate Unit, legal and auditing services  Purchased Property Services - utilities, repairs, leases and rentals.  Other Purchased Services - transportation, property insurances, advertising, tuitions and travel  Supplies- books, general supplies and natural gas  Equipment - computers, furniture and vehicles  Other objects – interest on bonds, dues and fees  Other Uses of Funds – bond principal and fund transfers Expenditure Budget for 2015-2016

21. Expenditure Comparison by Object 14/1515/16 Major Object Budget Amount $ Incr/Decr%Incr/Decr Salaries 38,622,466 39,854,403 1,231,9373.19% Employee Benefits 21,939,496 23,963,428 2,023,9329.23% Contr Prof. Svc 3,951,124 3,712,092 (239,032)-6.05% Purch Property Svcs 3,152,818 3,468,110 315,29210.00% Other Purchased Svcs 6,052,057 5,788,765 (263,292)-4.35% Supplies/Books 3,029,031 3,140,200 111,1693.67% Property (Equipment) 662,597 513,967 (148,630)-22.43% Other Objects 2,917,648 2,737,913 (179,735)-6.16% Other Financing Uses 6,987,020 7,063,127 76,1071.09% Total 87,314,257 90,242,005 2,927,7483.35%

22. Expenditure Comparison by Object

23. 22 Rose Tree Media School District’s Expenditure Budget for 2015-2016

24. 23  Four Year RTMEA Contract  One Year ESPA Contract  The addition of a.2 Chinese teaching position and an additional.4 music teaching position  Reduction in staff costs through attrition  Elimination of a maintenance supervisor position  Reduction in Health Care Costs through a change in the health care plan  Rising PSERS retirement rate  Maintain Current Program  Savings through energy efficiencies Key Facts of the Expenditure Budget. -- Key Points --

25. 24 Budget FinalExpenditures 2014-2015 2015-2016 Instructional 1000 $47,559,621 $50,086,860 Support Services/ 2000 28,429,078 28,880,762 Operations Non-Instructional Services 3000 1,653,752 1,706,504 Other Financing Services 5000 9,671,806 9,567,879 Totals $87,314,257 $90,242,005 Budget Final Revenues 2014-2015 2015-2016 Local 6000 69,991,873 70,871,407 State 7000 13,155,632 14,177,639 Federal 8000 664,100 627,500 Sub Totals $83,811,605 $85,676,546 Fund Balance 3,502,652 4,565,459 Totals $87,314,257 $90,242,005 Summary Budget

26. 25 Challenges  Tax Appeals  Potential rapid housing developments  Level State Funding  Unfunded Mandates  Charter School Tuition  Alternative Education  Special Education  PSERS Retirement  Transportation  Academic Assessments  Common Core Costs  Future Retirement Costs  14/15 21.40% $ 8,334,577  15/16 25.84% $10,006,511  16/17 29.27% $11,898,692  17/18 30.25% $12,543,018  18/19 31.28% $13,229,504

27. 26  1.9% Act 1 Index  2015-2016 Homestead exemption $217  Average homeowner assessment is $206,079  Average homeowner tax bill is $4,925 for an annual increase of $91  Pending new construction market  Maintain Current Programs  Transportation CNG Project  Recipient of $300,000 DEP grant for the CNG Transportation Project for 12 additional buses  An Award Winning District  Blue Ribbon Schools  Nationally Ranked High School Highlights