2021 22 Budget Community Presentations BUDGET HEARING MAY

2021 -22 Budget Community Presentations BUDGET HEARING, MAY 11, 2021

District Mission Statement With our children as our focus, and with accountability and honesty as our guiding principles, Schenevus Central School will provide a caring, stable, secure and academically challenging environment; one that motivates each student to discover, practice and master the skills to pursue a productive lifetime of work and learning within our community, and the world.

NOTEWORTHY ITEMS - 2021 -22 BUDGET ü Initial uncertainty/concern surrounding State Aid projections/reductions required deep dive into all areas of the budget to identify potential cost savings. ü All sections of Pre-K to 8 th grade at one section (due to cuts over the past 3 years) No cuts to program in 2021 -22. ü Security Camera Project – 3 rd /final phase of cameras will be purchased in 2021 -22. 100% aidable/reimbursed and no cost to taxpayers. ü High Deductible Health Plan implemented 7/1/2020 = opportunity for savings for Fiscal year 2020 -21. Budgeted/projected Utilization Rate for 2021 -22 reduced to 70% = no future savings projected. This allowed for a minimal overall budget increase over Prior Year. ü COVID Pandemic highlighted need for Technology Plan to support educational platforms.

Proposed Budget for 2021 -2022 1. 26 % increase over current year budget $ 119, 086

2021 -22 Spending Plan: Administration The Administrative Component of the budget focuses on expenditures associated with business operations and administration of the district. This includes the school board, the offices of the superintendent and principal, general administration, finance management, and legal costs. § 10% of Total Budget § $984, 229 § Increase of $46, 028 (4. 91%) over current year (2020 -21) § Major changes due to increased BOCES costs, contractual expenditures (new services to meet new mandates, bi-annual GASB reporting, change in Fiscal Agent, and recoding of BOCES Capital Expenses back to Special Items)

2021 -22 Spending Plan: Program The Program Component of the budget focuses on the cost of instruction and student services, including Teaching, Special Education programs, Instructional Media, Pupil Services, and Transportation. § 71% of Total Budget § $6, 751, 841 § Increase of $88, 692 (1. 33%) over current year (2020 -21) § This slight increase is a result of contractual salary increases, Changes in BOCES services and the incorporation of a Technology Plan to meet the ever-growing needs of classroom technology, maintenance of 1: 1 initiatives (hardware lifespan less than 4 years). These increases, have been offset by the savings in employee benefits (health insurance). We will continue to maximize Transportation aid and plan to purchase instructional media services through BOCES to reduce district cost and generate additional aid.

2021 -22 Spending Plan: Program In summary: üAll teaching programs have been maintained vs. current year. (no cuts to program) üNo major changes anticipated in Special Education Programs/Tuition costs vs. current year üProvision for realistic Technology Plan/Instructional media üAthletics and Extracurricular activities are expected to resume fully in 2021 -22 üNewer buses require fewer repairs – cost efficient & diesel efficient

2021 -22 Spending Plan: Capital The Capital Component of the budget focuses on the cost of operation and maintenance of school facilities, and the district's obligations on debt. § 19% of Total Budget § $1, 846, 115 § Decrease of $15, 634 (-0. 84%) over current year (2020 -21) No major changes over Prior Year. Contractual salary increases have been offset by health insurance reductions creating a small decrease. §

Budgetary Changes since 2018 -19

How did the Budget increase by just 1. 26% compared to 4. 57% last year? ØOn average school district budgets increase 3 - 4% annually due to contractual salary increases, all other expenses (supplies, materials, services) typically increase from year to year. ØHealth insurance savings even after a 4. 5% premium increase due to our projected Utilization Rate of 70% - based on our first year of usage and the anticipation of a return to pre-Covid medical visits. ØTwo Administrators vs. 3 in PY – is this sustainable?

Proposed Budget for 2021 -2022 Balancing the Budget Expenditure recap 1. 26 % increase in expenditures over current year budget $ 119, 086

Revenues must equal expenses = Balanced budget Revenue MUST equal $ 9, 582, 185 from: 1. State Aid 2. Other Local Revenue 3. Property Taxes 4. Reserve Use 5. Fund Balance

Revenues must equal expenses = Balanced budget Total Budget $ 9, 582, 185 State Aid Projection $ 5, 557, 782 includes increase in foundation aid § Other Revenue Projection $ 239, 500 (Transportation, Medicaid Reimbursements) § Tax Levy - Negative Tax Levy Cap § Reserve & Fund Balance Use – (Appropriated $244, 150 in current year) §

Tax Cap Calculation 2021 -22

Tax Levy at the Tax Levy Limit of – 1. 208% § § § Tax Levy at Allowable Limit = $3, 482, 319 Decrease of -$ 42, 570 vs current year Leaves a budget gap of - $ 302, 584 ($3, 784, 903 – $3, 482, 319) Options to close the gap: Ø Raise Taxes above the Cap Ø Use Fund Balance/Reserves

Revenue Breakdown BOE approved/proposed Revenues

BOE suggested Tax Levy increase above the Cap & Use of Fund Balance § Tax Levy Increase of $ 229, 118 Above the Tax Cap allowable limit at 6. 5% over PY § Total Proposed Tax Levy = $ 3, 754, 007 § To present a tax levy above this Maximum Allowable Tax Levy requires a Super Majority of 60%+ 1 voter approval § Use of Fund Balance $ 30, 986 §

Restricted Reserve Totals Expected as of 7/1/2021 Unemployment Reserve - $66, 103 EBLAR Reserve - $487, 048 Note: Use of $244, 150 as revenue was approved as part of closing current year 2020 -21 budget gap. Fortunately, due to COVID & Health Insurance savings we have not needed to use $244, 150 out of reserves.

Ballot Proposition for Budget BUDGET PROPOSITION YES [ ] NO [ ] To authorize the Board of Education to expend a sum not to exceed $9, 582, 185, which is an increase at the cap of 6. 5% for the school year July 1, 2021 to June 30, 2022; and that the Board of Education is duly authorized to levy the necessary tax for this purpose.

Board of Education - Elections Voters will elect one Board of Education member to serve (1) five-year. § The seat is currently held by Stacie Haynes and will expire on June 30, 2021. § There are 2 candidates running for this seat: § Jamie Osborne & Cory Spooner §

Board of Education Candidate on Ballot SCHOOL BOARD MEMBERS Vote for one (1) 5 -year term Member, (If you select more than (1) one, your vote will be null and void) Osborne, Jamie [ ] Spooner, Cory [ ] WRITE-IN__________

Bus Proposition – 1 new bus You will be voting on a proposition to add 1 new bus This will replace the oldest bus which will be traded in Our transportation aid amount is 90% New bus costs no more than $122, 000 Aid from NYS on new bus = $109, 800 Total cost of new bus to taxpayer = $12, 200 bonded for 5 years = $2, 440 per year. § Cost of keeping a school bus past 5 years in repair costs is much greater § § §

Bus Proposition What if buses are not purchased on a 5 -year cycle? § Bus trade-in amounts decrease – Get much less on trade in year 6, 7, etc. § Bus repairs are out of warranty after 5 -years and the need to hire more staff to fix and maintain both mechanical and body issues, increases. Currently only have bus mechanic 1 X/week. § Given our aid of 90% on transportation, it is more cost effective to purchase buses on a 5 -year cycle than to keep older buses. § It costs more money to keep a bus longer than 5 years.

Bus Proposition – What if we merge? § The Merger Study showed that in the event of a merger all buses will need to be used from each district. § Buying a new bus in 2021 will not be wasted if merger is positive as all buses will be needed. § In the event of a merger, transportation aid remains at 90% § Worcester purchases buses on a 5 -year cycle as well, so bus fleet will be combined and will continue on 5 -year cycle.

Bus Proposition on Ballot BUS PROPOSITION YES [ ] NO [ ] RESOLVED THAT THE BOARD OF EDUCATION OF THE SCHENEVUS CENTRAL SCHOOL DISTRICT IS HEREBY AUTHORIZED TO UNDERTAKE THE ACQUISITION OF ONE (1) 65 PASSENGER SCHOOL BUS AT AN ESTIMATED MAXIMUM COST OF $122, 000. 00, LESS TRADE-IN VALUE, IF ANY, AND THAT SUCH COSTS, OR SO MUCH THEREOF AS MAY BE NECESSARY, SHALL BE RAISED BY THE LEVY OF A TAX TO BE COLLECTED IN ANNUAL INSTALLMENTS; AND, IN ANTICIPATION OF SUCH TAX, DEBT OBLIGATIONS OF THE SCHOOL DISTRICT AS MAY BE NECESSARY NOT TO EXCEED $122, 000 SHALL BE ISSUED, OR THE SCHOOL DISTRICT MAY ENTER INTO AN INSTALLMENT PURCHASE CONTRACT IF THE BOARD OF EDUCATION DETERMINES THAT IT IS IN THE BEST INTEREST OF THE SCHOOL DISTRICT TO FINANCE THE PURCHASE IN THAT METHOD.

Next Steps May 11 th May 13 th May 18 th Today - Budget Hearing @ BOE Meeting - Schenevus CSD Thursday – Zoom Budget presentation with Q and A at 5: 00 pm Annual School District Budget Vote and School Board Election Vote Expiring seat held by Stacie Haynes Candidates running: Jamie Osborne, Cory Spooner June 15 th Statewide Budget Revote Day - 2 nd chance to vote same or different budget July 1 st Implement 2021 -22 Budget

What happens if the June 15 th revote is defeated? Contingent Budget § If the second proposed budget is defeated by voters, the Board of Education must adopt a contingent budget. § Under New York State’s tax “cap” law, a district can levy a tax no greater than that of the prior budget year - a zero percent increase - in a contingent budget. § Remove all equipment expenditures § Remove all non-contract employees’ salary increases (N/A) § No outside groups or organizations’ use of facilities and grounds § Use of Reserves/Fund Balance in the amount of $257, 014. Or cut non-mandates. 27

Communications Plan/Transparency Budget documents are all available at www. schenevuscsd. org Budget presentations: Thursday, May 13 th at 5: 00 pm via zoom Links will be provided on Facebook and our website, and a recording of the presentation will be available the following day.

Questions?