MSD Washington Township 2011 Budget Hearing Public Hearing
MSD Washington Township 2011 Budget Hearing
Public Hearing 2011 Budget 2011 -2012 -2013 Capital Projects Fund Plan 2011 -2022 School Bus Replacement Plan
The Budgetary Process Building Requests Superintendent’s Cabinet review Board of Education Study Session Adoption – September 07, 2010 Department of Local Government Finance approval – Early 2011 o Final Budget Order – Early 2011 o o o
General Fund o Major Sources of Revenue n State Support o Levy eliminated 2009 - State support increases to offset the loss of levy. o State now retains local taxes: Excise, CVET, FIT o 4. 55% cut in Tuition Support from state $64, 665, 949 - $2, 948, 071 = 61, 717, 878 2010 (2009 -2010) o ADM is up for 2011 -conserv. est. +350 $66, 468, 550 - $2, 948, 071 = 63, 520, 479 2011 (2010 -2011) $1, 772, 601 increase if the State does not cut our budget
2011 Budget continued o Revenue estimates – General Fund n General Fund formula will calculate the level of funding for 2011. How much will depend on what our final enrollment is for the 2010 -2011 school year. (Early estimates show our Average Daily Membership is higher than last year. ) n Miscellaneous revenue estimates are consistent year to year and for budgetary purposes are estimated a little on the low side.
Revenue – General Fund Actual 2005 Actual 2006 Actual 2007 Actual 2008 Actual 2009 Budget 2010 Budget 2011 Property Taxes 35, 959, 241 37, 818, 816 41, 812, 205 43, 125, 009 1, 035, 689 -0 - 59. 75% 62. 28% 64. 68% 63. 60% 1. 56% State Support 17, 149, 699 14, 761, 461 13, 614, 270 15, 869, 118 62, 573, 754 61, 717, 878 61, 747, 878 28. 50% 24. 31% 21. 06% 23. 40% 94. 47% 96. 14% 96. 90% Other Local Taxes 3, 463, 850 3, 636, 893 3, 550, 006 3, 566, 892 43, 887 -0 - Misc. Revenue 3, 605, 627 4, 503, 741 5, 660, 143 5, 235, 540 2, 576, 965 2, 475, 484 1, 968, 500 Total Revenues 60, 178, 417 60, 720, 911 64, 636, 624 66, 577, 777 66, 230, 295 64, 193, 362 63, 716, 378 Rev. Est. CPI 64, 806, 579 66, 880, 389 68, 753, 041 71, 365, 656 71, 080, 193 71, 628, 875
General Fund Expenditures 2007 Expenditures 2008 Expenditures 2009 Expenditures 2010 Appropriations 2011 Adjusted Budget Salaries 41, 787, 889 42, 501, 845 42, 790, 223 44, 129, 341 43, 241, 360 Employee Benefits 14, 355, 521 14, 737, 167 14, 660, 226 14, 824, 804 15, 391, 857 Sub-Total 56, 143, 410 57, 239, 012 57, 450, 449 58, 954, 145 58, 633, 217 % of Total Budget 91. 90% 92. 04% 91. 35% 91. 33% 90. 92% Purchased Services 3, 971, 616 4, 033, 907 3, 624, 466 3, 655, 355 3, 843, 386 Supplies 590, 525 645, 417 1, 633, 992 1, 762, 195 1, 835, 176 Other 384, 989 264, 946 179, 972 175, 832 175, 249 Total 61, 090, 540 62, 183, 282 62, 888, 879 64, 547, 527 64, 487, 028 1. 78% 1. 13%% 2. 64% (. 09%) % Change from Previous Year
Budget Reduction Plan General Fund o School Closures – Harcourt and Wyandotte o Prior Budget cuts 2006 & 2007 n $553, 006 & $1, 715, 431 o $1. 1 million budget reduction beginning 2010 to reduce the size of the new referendum. o Personnel (attrition/retirements/reductions)
Referendum Fund-New & Old o Old referendum is in it’s final year n The $0. 10 tax rate used for the Referendum Fund is neutralized by a $0. 10 reduction in the CPF rate. n n n Teacher salaries & benefits Classified salaries % benefits Administrative salaries & benefits Budget deficit reduction Operating Balance 55. 0% 12. 2% 8. 0% 10. 8% 14. 0% o Percentages are applied to the total estimated revenue for the fund. o Revenue for 2009 was - $5, 772, 142
2011 – First Year-New Referendum o The new referendum is for 2011 -2017 o The tax rate of the new referendum will not exceed $0. 08. o It is applied to the assessed value of the school district and it is our intention to have approximately $4 million available for each of the seven years. o Spending plan – Not set ahead of time like the old referendum. o Will be used to support GF related exp. o Will be revenue neutral-CPF rate reduction
Debt Service Fund o Lease payments to Building Corporation o 2010 General Obligation Bond ($2 million) n Old debt coming off-new goes on-rate neutral o Unreimbursed textbook expense o Interest on temporary loans o Amortization schedules are used to determine need.
Retirement/Severance Bond Debt Service Fund o $1. 46 Million due in 2011. o Principal and Interest on pension bonds.
Capital Projects Fund-Continued o The advertised budget for 2011 is approximately $21. 1 million. The actual estimate will need to be close to $9. 4 million. The advertised budget will be reduced by the Referendum Fund levy (about $4. 0 million). The remainder will be reduced after changes in AV for 2011 and the impact of the circuit breakers is unknown.
Capital Projects Fund-Estimated (in millions) o o o o Professional Services Building acquisition/construction Purchase of equipment Emergency allocation Utility services Maintenance of equipment Technology Total $0. 7 $3. 0 $1. 6 $0. 2 $2. 0 $0. 1 $1. 8 $9. 4 o Estimated budget for 2011 is $9. 4 million. o Changes in AV have a significant impact on the CPF. The amount moving to Referendum is constant at $0. 08.
Increased Homestead Deductions Impact on AV - 2009 o Standard Deduction – lesser of 60% of the AV or $45, 000. Any home with an AV of $75, 000 can receive the full $45, 000 deduction. o $75, 001 - $600, 000 Additional 35% o Above $600, 001 – Additional 25%
Increased Homestead Deductions Impact on AV (continued) o 2007 pay 2008 AV $6, 763, 679, 942 o 2008 pay 2009 AV $5, 491, 106, 301 (18. 8%) o 2009 pay 2010 AV $5, 530, 854, 782 +. 7% o 2010 pay 2011 AV $4, 951, 000 (10. 5%)
Impact on MSDWT Fund Max Levy 2008 Max Levy 2009 Revenue Lost CPF $10, 429, 594 $8, 840, 681 ($1, 588, 913) REF $ 6, 763, 680 $5, 491, 106 ($1, 272, 574) Total $17, 193, 274 $14, 331, 787($2, 861, 487)
Impact on MSDWT – cont. Fund Max Levy 2010 Est. Max Levy 2011 Revenue CPF $8, 893, 614 $ 9, 159, 505 ($1, 304, 097) REF $5, 530, 855 $ 3, 960, 867 Gained(Lost) $ -0 - Total $14, 424, 469 $13, 120, 372 ($1, 304, 097)
Transportation Fund o Levy cap for 2011 is estimated at $6, 570, 000. This is a 2. 9% increase over 2010. The 2. 9% is the Average 6 Year Growth Rate of the Personal Nonfarm Income Growth Factor.
Bus Replacement Fund o Twelve (12) Year Bus Replacement Plan for the years 2011 – 2022. o MSDWT will purchase 10 new buses in 2011. Will utilize CIESC bid as we did in 2009 & 2010. We have already notified the vendor of our intent and that will help secure favorable pricing. o This fund is used to neutralize the debt payments for pension bonds.
Other Current and Future Budget Issues New Reassessment – July 1, 2010 Funding formula New hires after Jul 01, 1995 Competitive salaries/benefits Circuit Breakers were fully in effect for the first time beginning in 2010 o New State budget July 1, 2011 o General Assembly o Indiana economy and possible budget reductions o o o
Impact of Reassessment on MSDWT o 2007 Budget – Received May 2008. o 2007 Revenue- Settlement at end of August 2008. o 2008 Budget – Received May 2009. o 2008 Revenue- Settlement at end of August 2009. o 2009 Budget – Anticipated end of September 2009. o 2009 Revenue- First tax bill in Nov. 2009 with final settlement occurring in Spring 2010. o 2010 Budget – Anticipated in Spring of 2010 o 2010 Revenue – Bill and collect all revenue in 2010. o WE ARE BACK ON SCHEDULE BEGINNING 2010
Cash Flow – Critical Issue o Cash Flow will be an important financial issue facing the district. n Short term borrowing-MSDWT will continue to issue tax warrants so the district will have enough money to meet our obligations in all funds. n Use district resources to meet the most critical needs of our students and to maintain quality programs.
Assessed Values for 2011 q Current estimate for 2010 pay 2011 q $4, 951, 084, 079 Down $745, 462, 330 or 13. 1% q $545, 435, 938 being held out for appeals. This will help protect us from a shortfall but will cause rates to go up a little and possibly add to our potential loss of revenue due to the Caps. 2011 estimated loss from caps $260, 814
Budget Adoption September 07, 2010
QUESTIONS?
MSD Washington Township 2011 Budget Hearing
- Slides: 29
