Elmira Heights Central School District Budget Presentation February 10, 2014

Transcription

1 Elmira Heights Central School District Budget Presentation February 10,

2 2 Budget Development

3 3 Budget Development

4 Budget Factors Budget $20,054,526 1% Budget Increase $200, Tax Levy $7,375,592 1% Tax Levy Increase $73, % Budget Increase = 2.71% tax levy increase

5 BOCES Budget Projected $ Increase Projected % increase in Levy Budgeted $4,691, Current $4,692, Current + 3% $4,832,879 $140, % 5 The actual BOCES budget is unknown at this time. It will be presented to the district on Feb 11 th. We anticipate Special Education to increase due to the number of students anticipated. In addition, benefits are anticipated to increase (Health insurance, TRS, Worker s Comp).

6 Selected Benefit Projections ERS Contribution decreasing from 21.10% to 20.40% (Tier 4 %-majority of employees) (.70% decrease) TRS Contribution increasing from 16.25% to 17.53% (1.28% increase) 6

7 Selected Benefit Projections Workers Comp increasing due to experience increase from.94 to 1.09 (.15 increase) 7 Health Insurance 8% estimated increase in NY44 Plan (Family from $15,582 to $16,824; Single from $5742 to $6,204 annually). More retirees selected Medicare Advantage Plan than anticipated (currently 71 retirees & spouses in this plan out of 160 total). Only eligible if you are Medicare eligible. Medicare premium 1/1/14 increased 13%. Rate will change again 1/1/15 increase unknown at this time.

8 Selected Benefit Projections Benefit Budgeted Projected Projected $ Increase Projected % increase in Levy ERS $275,000 $281,000 $6,000 TRS $901,782 $1,013,000 $111,218 Workers Comp $84,560 $94,000 $9,440 Health Insurance $2,480,893 $2,508,840 $27,947 8 Total $3,742,235 $3,896,840 $154, %

9 9 Staffing

10 10 Budget Development

11 How Can Reserves Be Accessed? Reserve Current Balance Capital Reserve $808,163 Funds can be transferred to other reserves only by voter approval Reserve can be terminated by voter approval prior to specified expiration date Remaining funds must first be applied to outstanding bonded indebtedness and secondarily to reduce the tax levy Would need voter approval to terminate and use towards debt service. Indebtedness in excess of $10mil so would not be able to apply any towards reducing the tax levy. 11

12 How Can Reserves Be Accessed? Reserve Current Balance Repair Reserve $203,957 Unneeded balance may be transferred to Capital, Tax Certiorari or Retirement Contribution Reserves Could be transferred to Capital and included in termination of Capital Reserve to be applied to indebtedness or: Could be transferred to Retirement Contribution Reserve to offset future ERS costs. 12

13 How Can Reserves Be Accessed? Reserve Current Balance Workers Compensation Reserve $87,414 Funds remaining at the end of the school year may be transferred, within 60 days of the end of the school year, to other reserve funds or applied to budgetary appropriations for the new school year. Workers Compensation cost for estimated at $94,

14 How Can Reserves Be Accessed? Reserve Current Balance Unemployment Reserve $25,000 Funds remaining at the end of the school year may be transferred, within 60 days of the end of the school year, to other reserve funds or applied to budgetary appropriations for the new school year. Budget for is $25,000. Can only use actual charges each year. 14

15 How Can Reserves Be Accessed? Reserve Current Balance Mandatory Reserve for Debt Service $455,938 Funds may only be used for debt services or to retire outstanding obligations Proceeds in excess of indebtedness may be expended for any other lawful district purpose (does not apply at this time due to current indebtedness) Bonded Indebtedness at 7/1/2014 $10,130,

16 How Can Reserves Be Accessed? Reserve Current Balance Tax Certiorari Reserve $2,796 Money not expended must be returned to the General Fund on or before the 1 st day of the 4 th school year after the after deposit of monies into reserve unless such claims are still open. Can terminate or disposed of after exhaustion of all appeals. Interest only remaining in reserve so may be transferred back to the General Fund. No other outstanding claims to our knowledge. 16

17 How Can Reserves Be Accessed? Reserve Current Balance Reserve for Employee Benefit Accrued Liability (EBALR) Upon termination by Board, balance not required to satisfy all incurred or accrued liabilities may be transferred to any other reserve fund(s) authorized in General Municipal Law (GML). May not be used to fund health insurance or post-retirement benefits (retirement incentives). $257,743 Comptroller s office and auditors stated that current compensated absences should not be reserved for ($109,866 could be transferred back to the General Fund). Balance of $147,877 could be transferred to another reserve. 17

18 How Can Reserves Be Accessed? Reserve Current Balance Reserve for Retirement Contributions (ERS only) $462,478 Expenditures can be authorized by Board resolution (use as revenue to offset expenditures) Transfers from or back to other reserve funds require a public hearing with 15 days notice published in official newspaper. Can be used to offset ERS expense in ; estimated at $281,000. Would leave approximate balance of $181,

19 Unassigned Fund Balance Current Balance Unassigned Fund Balance (4% of subsequent year s budget) District s savings account that can be used to pay for unforseen expenses. $767,074 Can be used to offset expenditures in

20 Reserve/Fund Balance Unassigned Fund Balance & Reserve Summary Current Balance Estimate to use in Remaining Estimated Reserves Capital Reserve $808,163 $0 $808,163 Repair Reserve $203,957 $0 $203,957 Workers Compensation $87,414 $87,414 $0 Unemployment $25,000 $25,000 $0 Debt Service (**see tax cap slide) $455,938 $135, ,938 Tax Certiorari $2,796 $2,796 $0 EBALR $257,743 $109,866 $147,877 ERS Reserve $462,478 $281,000 $181,478 Unassigned Fund Balance $767,074 $3,076 $763,998 Total Reserves/Unassigned FB $3,070,563 $638,000 $2,432,563 20

21 21 Budget Development

22 Capital Outlay Project/NYSAFE The District has been reviewing the possibility of doing a $100,000 Capital Outlay Project and a $35,000 NYSAFE project. Cost of projects would be offset by transfers from the Debt Service fund. $100,000 projects would be done each year until the debt service fund is exhausted. NYSAFE projects have 10% incentive aid in & per legislation. Possibly do additional projects in future years even if incentive is not continued (would be aided at selected building aid ratio). 22

23 Capital Outlay Project/NYSAFE 23 Capital Outlay Project (COP) see hand-out Wholly funded through capital outlay and have a total cost of no more than $100,000. SED will apply appropriate building aid ratio. Project must be approved by Facilities Planning and designated as a COP. Aid is not received until year after expenses incurred. NYSAFE Project (New York Secure Ammunition and Firearms Enforcement Act) -see hand-out All eligible expenses will be aided at the current year RWADA aid ratio (currently.784) plus 10% (.884) Aids stationary metal detectors, security cameras, electronic security systems and hardened doors.

24 24 Budget Development

25 How Will We Close the Gap? What are the choices? Further program cuts/staff reduction Use of Reserves Combination of both 25

26 Next Board Meetings February 24, :00 p.m. March 10, :00 p.m. TAE Community Room 26

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