PRELIMINARY General Fund Operating Budget. Fiscal Year East South Street Kennett Square, PA 19348

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1 PRELIMINARY General Fund Operating Fiscal Year East South Street Kennett Square, PA 19348

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4 GENERAL FUND BUDGET TABLE OF CONTENTS ORGANIZATIONAL SECTION Board of Directors 1 Central Administration 1 School Administrators 2 Consultants and Advisors 3 Timeline 4 FINANCIAL SECTION Summary of General Fund 7 Summary of Revenue and Expenditures by Function 8 Summary of Expenditures and Other Financing by Object 9 Comparison of Revenues 10 Comparison of Expenditures 11 Revenue Summaries 14 Revenue - Explanations 16 Expenditure Summaries and Explanations Instructional 1000 Series 20 Support Services 2000 Series 28 Operation of Non-Instructional Services 3000 Series 49 Site/Facilities Improvement 4000 Series 54 Other Outlays 5000 Series 57 INFORMATIONAL SECTION Five Year Comparison of Revenues by Function 61 Five Year Comparison of Expenditures by Function 62 Five Year Comparison by Object 65 Historical Analysis of Millage Rate 66 Historical Analysis of Real Estate Tax Levy 66 Real Estate Tax Collections Analysis 67 Historical Analysis of Real Estate Assessments 68 Historical Analysis of STEB Market Value 68 Tax Duplicate Assessment Analysis by Property Classification 69 Tax Duplicate Assessment Analysis by Municipality 70 Principal Tax Payers 71 Common Level Ratio 71 Average Residential Assessment 72 Property Tax Reference Table 73 Demographic Statistics 74 Building Allocation 75 Debt Service Schedule 76 Outstanding Debt Service Schedule 77 Scholastic Aptitude Test (SAT) Mean Scores 78 SALARIES AND BENEFITS Attached and made part of this document June 10, 2013 Available by contacting the Director of Business Administration The Kennett Consolidated School District will not discriminate in its educational programs, activities, or employment practices, based on race, color, national origin, sex, disability, age, religion, ancestry, union membership, or any other legally protected classification. Announcement of this policy is in accordance with state and federal laws, including Title IX of the Education Amendments of 1972, Sections 503 and 504 of the Rehabilitation Act of 1973, and the Americans with Disabilities Act of Kennett Consolidated School District employees and participants who have an inquiry or complaint of harassment or discrimination, or need information about accommodations for persons with disabilities, should contact Dr. Barry Tomasetti, District Superintendent, 300 East South Street, Kennett Square, PA 19348, telephone (610)

5 Organizational

6 GENERAL FUND BUDGET ORGANIZATION BOARD OF SCHOOL DIRECTORS Heather Schaen, President Douglas B. Stirling, Vice President Michael Finnegan, Treasurer Rudy Alfonso Kendra LaCosta Dominic F. Perigo, Jr. Aline Frank Joseph Meola Janis W. Reynolds Mark T. Tracy, Secretary ADMINISTRATION Barry Tomasetti, Ed.D., District Superintendent Mark T. Tracy, Assistant to the Superintendent Business Affairs Sharon Bennett, Director of Special Education Nancy L. Tischer, Director of Human Resources Robert J. Perzel, Director of Construction and Facilities Management 1

7 GENERAL FUND BUDGET BUILDING DIRECTORY KENNETT CONSOLIDATED SCHOOL DISTRICT Administration Building 300 East South Street Kennett Square, Pennsylvania (610) KENNETT HIGH SCHOOL 100 E. South Street Kennett Square, PA Telephone: (610) Principal: Michael Barber Asst. Principal: Raymond Fernandez Asst. Principal: Tomorrow Jenkins KENNETT MIDDLE SCHOOL 195 Sunny Dell Road Landenberg, PA Telephone: (610) Principal: John Carr Asst. Principal: Lorenzo DeAngelis BANCROFT ELEMENTARY SCHOOL 181 Bancroft Road Kennett Square, PA Telephone: Principal: Leah McComsey GREENWOOD ELEMENTARY SCHOOL 420 Greenwood Road Kennett Square, PA Telephone: (610) Principal: Tracey Marino MARY D. LANG KINDERGARTEN CENTER 409 Center Street Kennett Square, PA Telephone: (610) Principal: Carla Horn NEW GARDEN ELEMENTARY SCHOOL 265 New Garden Road Post Office Box 488 Toughkenamon, PA Telephone: (610) Principal: Susan McArdle 2

8 GENERAL FUND BUDGET CONSULTANTS AND ADVISORS AUDIT FIRM Timothy D. Umbreit, P.C. Certified Public Accountant 714 East Baltimore Pike Kennett Square, PA SOLICITOR John R. Merrick Attorney At Law 117 South Broad Street Kennett Square, PA FINANCIAL ADVISORS RBC Capital Markets, LLC 2101 Oregon Pike Lancaster, PA FINANCIAL ADVISORS Public Financial Management One Keystone Plaza, Suite 300 North Front and Market Streets Harrisburg, PA BOND COUNSEL Kegel, Kelin, Almy & Lord LLP 24 North Lime Street Lancaster, PA OFFICIAL DEPOSITORY Fulton Bank 501 School House Road Kennett Square, PA

9 GENERAL FUND BUDGET BUDGET TIMELINE September 1, 2013 PDE publishes the Act 1 index (2.1% for ) October 7, 2013 October 18, 2013 Finance Committee Meeting Board Room, 7:00 PM Student enrollment projections from the Assistant to the Superintendent - Business Affairs Guidelines and base allocation developed by the Assistant to the Superintendent Business Affairs for each school based upon its student enrollment multiplied by a weighted dollar value November 18, 2013 November 22, 2013 December 9, 2013 December 13, 2013 Finance Committee Meeting - Board Room, 7:00 PM -Independent Auditor s Report for the Year Ended June Debt Service Schedules -Building Allocations -Homestead Mailings Draft salary and benefit projections for existing staff pending release of PSERS rates and first look rates from Reschini Group Finance Committee Meeting - Board Room, 7:00 PM -Salaries and Benefits -Revenues -Charter School Tuition Provide individualized packets to the administrative team with instructions, base allocation information, prior year s actual budget information, and the forms required for submission to the Assistant to the Superintendent - Business Affairs Initial planning, itemizing and prioritizing budgetary appropriations by principals and administrators Staffing requests, special request forms, and administrators budgets due to Assistant to the Superintendent - Business Affairs Board to certify to the PDE the total amount of tax credits due pursuant to the Sterling Act provisions December 16-30, 2013 December 30, 2013 January 6, 2014 January 30, 2014 planning conferences for administrative team to prioritize special request items, district-wide initiatives, and staffing requests Mail annual Homestead/Farmstead notice Finance Committee Meeting Board Room, 7:00 PM Deadline for preliminary budget to go on display Assistant to the Superintendent - Business Affairs budgets the revenue and calculates the tax millage rate required to fund the budget 4

10 GENERAL FUND BUDGET BUDGET TIMELINE (continued) January 31, 2014 Deadline for Board to give public notice of intent to adopt preliminary budget (10 days in advance of adoption) February 3, 2014 February 10, 2014 February 24, 2014 February 27, 2014 March 3, 2014 March 6, 2014 Finance Committee Meeting - Board Room, 7:00 PM Review and adopt the preliminary budget and tentative tax rates Submit proposed tax increase to PDE Advertise referendum exception if applicable Finance Committee Meeting Board Room, 7:00 PM PDE informs districts if proposed tax increase complies with or exceeds the index Submit exception filings to the court or PDE March 26, 2014 April 7, 2014 April 14, 2014 Court/PDE to rule and inform districts if exceptions have been granted or denied Finance Committee Meeting - Board Room, 7:00 PM Adopt the proposed final budget Certification of Use of PDE-2028 to PDE PDE-2028 available for public inspection April 15, 2014 May 1, 2014 PDE certifies amount of funds available in the property tax relief fund PDE notifies districts of property tax relief allocation Chester County submits Homestead/Farmstead report to district May 5, 2014 May 20, 2014 May 30, 2014 June 2, 2014 June 9, 2014 Finance Committee Meeting - Board Room, 7:00 PM Final budget on form PDE-2028 available for public inspection Give public notice of intent to adopt final budget Finance Committee Meeting - Board Room, 7:00 PM Adopt the budget and tax resolution Print and display the budget Assumptions: The District will seek referendum exceptions. The District will not seek approval through voter referendum. 5

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12 Financial

13 PRELIMINARY GENERAL FUND BUDGET SUMMARY OF PRELIMINARY GENERAL FUND BUDGET GENERAL FUND REVENUES Local Taxes $ 59,191,638 Interest on Investments 50,000 Other Local Revenue 765,298 State Revenue 14,429,880 Federal Revenue 1,100,579 TOTAL REVENUES 75,537,395 EXPENDITURES Regular Programs 31,014,744 Special Programs 11,729,066 Vocational Programs 1,411,131 Other Instructional Programs 187,408 Pupil Services 2,069,046 Instructional Support 2,148,291 Administrative Support 3,456,791 Health Services 761,612 Business Support 1,071,811 Maintenance Support 6,245,906 Student Transportation 5,008,677 Central Support 1,989,319 Intermediate Unit Support 37,551 Student Activities 1,070,070 Site/Facilities Improvement 50,000 Debt Service Interest 2,215,292 Debt Service Principal 5,695,000 ary Reserve 90,000 TOTAL EXPENDITURES 76,251,715 Deficiency of revenues under expenditures (714,320) OTHER FINANCING SOURCES (USES) Transfers in - Total Other Financing Sources (Uses) - Net Change in Fund Balances (714,320) Fund Balance - Beginning Estimated 4,531,150 Fund Balance - Ending Estimated 3,816,830 7

14 PRELIMINARY GENERAL FUND BUDGET SUMMARY OF REVENUES AND EXPENDITURES (by function) % CHANGE % OF EACH OVER CATEGORY FUNCTION DESCRIPTION ACTUAL BUDGET BUDGET BUDGET TO TOTAL REVENUES 6000 Local Sources $ 56,970,786 $ 58,323,980 $ 60,006, % 78.70% 7000 State Sources 13,126,038 13,720,619 14,429, % 18.92% 8000 Federal Sources 1,310,665 1,135,579 1,100, % 1.44% 0000 Fund Balance Appropriation - 714, , % 0.94% Total Revenue 71,407,489 73,894,508 76,251, % % EXPENDITURES 1000 Instructional 40,604,143 42,413,440 44,342, % 64.97% 2000 Support Services 21,269,313 22,354,827 22,789, % 33.39% 3000 Student Activities 1,103,352 1,052,321 1,070, % 1.57% 4000 Site/Facilities Improvement - 50,000 50,000 *** 0.07% Total Expenditures 62,976,808 65,870,588 68,251, % % OTHER FINANCING USES 5000 Debt Service 6,452,223 7,933,920 7,910, % 98.88% 5000 Interfund Transfers Out 1,312, % 0.00% 5000 ary Reserve - 90,000 90, % 1.12% Total Other Financing Uses 7,764,600 8,023,920 8,000, % % TOTAL EXPENDITURES & OTHER FINANCING USES $ 70,741,408 $ 73,894,508 $ 76,251, % % General Fund Summary of Revenues 1% 1% 19% Local Sources State Sources Federal Sources Fund Balance Appropriation 79% 8

15 PRELIMINARY GENERAL FUND BUDGET SUMMARY OF EXPENDITURES AND OTHER FINANCING USES (by object) % CHANGE % OF EACH OVER CATEGORY OBJECT DESCRIPTION ACTUAL BUDGET BUDGET BUDGET TO TOTAL 100 Salaries $ 30,038,652 $ 28,972,201 $ 29,315, % 38.45% 200 Employee Benefits 13,225,702 14,468,294 15,799, % 20.72% 300 Professional Services 5,511,055 5,719,740 5,876, % 7.71% 400 Purchased Property Services 1,508,448 1,905,088 1,905, % 2.50% 500 Other Contracted Services 10,126,078 12,054,293 12,537, % 16.44% 600 Books and Supplies 1,867,544 2,168,410 2,234, % 2.93% 700 Equipment 540, , , % 0.57% 800 Other Objects 2,570,971 2,772,792 2,448, % 3.21% 900 Other Uses of Funds 5,352,745 5,395,500 5,695, % 7.47% TOTAL EXPENDITURES $ 70,741,408 $ 73,894,508 $ 76,251, % % Summary of Expenditures by Object 3% 16% 3% 8% 1% 3% 7% 38% Salaries Employee Benefits Professional Services Purchased Property Services Other Contracted Services Books and Supplies Equipment Other Objects Other Uses of Funds 21% 9

16 PRELIMINARY GENERAL FUND BUDGET COMPARISON OF REVENUES BUDGET TO BUDGET CHANGE OVER FUNCTION/ BUDGET OBJECT DESCRIPTION ACTUAL BUDGET BUDGET $ % 6000 REVENUE SOURCES 6111 Current Real Estate Taxes $ 50,045,173 $ 51,648,348 $ 53,018,638 $ 1,370, % 6112 Interim Real Estate Taxes 405, , ,000 50, % 6113 Utility Taxes 73,021 70,000 73,000 3, % 6151 Earned Income 3,860,952 3,400,000 3,550, , % 6153 Realty Transfer Tax 710, , ,000 9, % 6411 Delinquent Real Estate Taxes 1,498,661 1,350,000 1,450, , % 6510 Investment Earnings 42,296 50,000 50, % 6832 IDEA 565, , , % 6910 Rentals 87, , , % 6990 Refunds and Other Miscellaneous Revenue 250,636 50,041 50, % TOTAL LOCAL SOURCES 57,539,072 58,323,980 60,006,936 1,682, % 7000 STATE SOURCES 7110 State Basic Subsidy 4,944,312 4,944,283 5,135, , % 7160 Tuition for Orphans 7, % 7250 Migratory Children 3, % 7271 Special Education 1,603,930 1,641,323 1,641, % 7310 Transportation 1,404,204 1,425,661 1,440,000 14, % 7320 Authority Rental Reimbursement 366, , ,000 (100,000) % 7330 Medical & Dental Reimbursement 88,334 86,000 86, % 7340 Property Tax Reduction Allocation 1,390,637 1,379,054 1,379, % 7501 Accountability Grant 128, , , % 7810 FICA Reimbursement 1,087,238 1,160,811 1,121,313 (39,498) -3.40% 7820 Retirement Reimbursement 1,778,637 2,493,041 3,136, , % TOTAL STATE SOURCES 12,803,268 13,720,619 14,429, , % 8000 FEDERAL SOURCES 8514 Title I 453, , , % 8515 Title II 134, , , % 8516 Title III 144, , , % 8709 ARRA - Ed Jobs Fund % 8810 Medical Assistance Reimbursement 322, , ,000 (35,000) % 8820 Medical Asst. Reimb. For Admin Claiming 9, % TOTAL FEDERAL SOURCES 1,065,149 1,135,579 1,100,579 (35,000) -3.08% 0000 OTHER APPROPRIATIONS 0000 Fund Balance Appropriation - 714, ,320 (10) 0.00% TOTAL OTHER APPROPRIATIONS - 714, ,320 (10) 0.00% TOTAL ALL REVENUE SOURCES $ 71,407,489 $ 73,894,508 $ 76,251,715 $ 2,357, % 10

17 PRELIMINARY GENERAL FUND BUDGET COMPARISON OF EXPENDITURES BUDGET TO BUDGET CHANGE OVER FUNCTION/ BUDGET OBJECT DESCRIPTION ACTUAL BUDGET BUDGET $ % 1100 REGULAR PROGRAMS 100 Salaries $ 17,582,648 $ 17,587,878 $ 17,830,435 $ 242, % 200 Employee Benefits 7,892,500 8,952,424 9,835, , % 300 Purchased Prof. Services 22, ,584 54, % 400 Purchased Prop. Services 2,332 7,100 6,900 (200) -2.82% 500 Other Contracted Services 2,141,927 2,591,699 2,776, , % 600 Books/Supplies 412, , ,771 67, % 700 Equipment 8,686 17,152 17, % 800 Other Objects TOTAL REGULAR PROGRAMS 28,063,225 29,582,509 31,014,744 1,432, % 1200 SPECIAL PROGRAMS 100 Salaries 3,311,758 2,483,639 2,515,530 31, % 200 Employee Benefits 1,644,322 1,344,900 1,388,557 43, % 300 Purchased Prof. Services 4,746,903 4,909,429 5,012, , % 400 Purchased Prop. Services 2,645 7,152 7, % 500 Other Contracted Services 1,328,609 2,547,634 2,730, , % 600 Books/Supplies 36,783 56,999 56, % 700 Equipment 4,178 13,136 13, % 800 Other Objects 2,140 4,500 4, % TOTAL SPECIAL PROGRAMS 11,077,338 11,367,389 11,729, , % 1300 VOCATIONAL PROGRAMS 500 Other Contracted Services 1,299,025 1,276,134 1,411, , % TOTAL VOCATIONAL PROGRAMS 1,299,025 1,276,134 1,411, , % 1400 OTHER INSTRUCTIONAL PROGRAMS 100 Salaries 67, Employee Benefits 13, Purchased Prof. Services - 60,000 60, % 400 Purchased Prop. Services Other Contracted Services 76, , , % 600 Books/Supplies 7, Equipment Other Objects TOTAL OTHER INSTRUCTIONAL PROGRAMS 164, , , % 2100 PUPIL SERVICES 100 Salaries 1,278,914 1,272,240 1,202,547 (69,693) -5.48% 200 Employee Benefits 536, , ,849 22, % 300 Purchased Prof. Services 211, , , % 400 Purchased Prop. Services Other Contracted Services 4,422 5,100 5, % 600 Books/Supplies 6,838 11,800 11, % 700 Equipment - 1,000 1, % 800 Other Objects % TOTAL PUPIL SERVICES 2,039,316 2,115,880 2,069,046 (46,834) -2.21% 2200 INSTRUCTIONAL SUPPORT 100 Salaries 1,023,336 1,058,846 1,080,084 21, % 200 Employee Benefits 395, , ,101 53, % 300 Purchased Prof. Services 21,458 77,643 77,493 (150) -0.19% 400 Purchased Prop. Services 3,802 5,650 5,550 (100) -1.77% 500 Other Contracted Services 22,593 27,154 30,154 3, % 600 Books/Supplies 454, , ,459 (300) -0.07% 700 Equipment 14,667 19,000 19, % 800 Other Objects 518 7,450 7, % TOTAL INSTRUCTIONAL SUPPORT 1,936,260 2,071,491 2,148,291 76, % 11

18 PRELIMINARY GENERAL FUND BUDGET COMPARISON OF EXPENDITURES BUDGET TO BUDGET CHANGE OVER FUNCTION/ BUDGET OBJECT DESCRIPTION ACTUAL BUDGET BUDGET $ % 2300 ADMINISTRATIVE SUPPORT 100 Salaries 2,037,888 2,018,792 2,059,991 41, % 200 Employee Benefits 704, , , , % 300 Purchased Prof. Services 152, , , % 400 Purchased Prop. Services Other Contracted Services 126, , ,073 (4,780) -3.99% 600 Books/Supplies 26,061 29,915 31,750 1, % 700 Equipment - 10,915 10, % 800 Other Objects 57,191 66,388 67, % TOTAL ADMINISTRATIVE SUPPORT 3,104,466 3,313,533 3,456, , % 2400 HEALTH SERVICES 100 Salaries 479, , ,427 2, % 200 Employee Benefits 210, , ,435 24, % 300 Purchased Prof. Services 16,366 8,300 8, % 400 Purchased Prop. Services % 500 Other Contracted Services Books/Supplies 21,065 21,961 21, % 700 Equipment % 800 Other Objects TOTAL HEALTH SERVICES 728, , ,612 27, % 2500 BUSINESS SUPPORT 100 Salaries 610, , ,350 12, % 200 Employee Benefits 232, , ,761 35, % 300 Purchased Prof. Services 33,411 54,800 54, % 400 Purchased Prop. Services 2, Other Contracted Services 7,541 9,250 9, % 600 Books/Supplies 5,755 15,000 15, % 700 Equipment 1,320 10,000 10, % 800 Other Objects 22,490 16,650 16, % TOTAL BUSINESS SUPPORT 916,689 1,024,196 1,071,811 47, % 2600 MAINTENANCE SUPPORT 100 Salaries 2,206,952 1,938,794 1,974,531 35, % 200 Employee Benefits 1,134,592 1,202,470 1,299,135 96, % 300 Purchased Prof. Services 68,494 27,194 27, % 400 Purchased Prop. Services 1,499,677 1,828,697 1,828, % 500 Other Contracted Services 203, , , % 600 Books/Supplies 585, , , % 700 Property 79, , , % 800 Other Objects 14,011 14,003 14, % TOTAL MAINTENANCE SUPPORT 5,791,906 6,113,504 6,245, , % 2700 STUDENT TRANSPORTATION 100 Salaries 111, , ,850 2, % 200 Employee Benefits 57,182 66,050 73,356 7, % 300 Purchased Prof. Services 2,800 3,000 3, % 400 Purchased Prop. Services 2,579 2,500 3, % 500 Other Contracted Services 4,693,340 4,805,591 4,778,121 (27,470) -0.57% 600 Books/Supplies 36,321 37,000 37, % 700 Equipment Other Objects 505 1, (1,000) % TOTAL STUDENT TRANSPORTATION 4,904,488 5,026,998 5,008,677 (18,321) -0.36% 12

19 PRELIMINARY GENERAL FUND BUDGET COMPARISON OF EXPENDITURES BUDGET TO BUDGET CHANGE OVER FUNCTION/ BUDGET OBJECT DESCRIPTION ACTUAL BUDGET BUDGET $ % 2800 CENTRAL SUPPORT 100 Salaries 710, , ,186 19, % 200 Employee Benefits 257, , ,759 52, % 300 Purchased Prof. Services 146,044 91,250 91, % 400 Purchased Prop. Services Other Contracted Services 83, , ,974 10, % 600 Books/Supplies 185, , ,150 (10,000) -3.09% 700 Equipment 424, , , % 800 Other Objects 1,897 3,500 3, % TOTAL CENTRAL SUPPORT 1,809,327 1,917,626 1,989,319 71, % 2900 INTERMEDIATE UNIT SUPPORT 500 Other Contracted Services 38,095 37,551 37, % TOTAL INTERMEDIATE UNIT SUPPORT 38,095 37,551 37, % 3000 OPERATION OF NONINSTRUCTIONAL SERVICES 100 Salaries 617, , ,434 2, % 200 Employee Benefits 145,219 71,408 79,990 8, % 300 Purchased Prof. Services 88,579 91,099 91, % 400 Purchased Prop. Services 991 3,000 3, % 500 Other Contracted Services 93, , , % 600 Books/Supplies 90,344 93, ,491 6, % 700 Equipment 7,608 4,000 4, % 800 Other Objects 59,910 29,781 29,281 (500) -1.68% TOTAL OPERATION OF NONINSTRUCTIONAL SERVICES 1,103,352 1,052,321 1,070,070 17, % 4000 SITE/FACILITIES IMPROVEMENT 400 Purchased Prop. Services - 50,000 50, % 700 Property/Equipment TOTAL SITE/FACILITIES IMPROVEMENT - 50,000 50, % 5100 OTHER FINANCING 800 Serial Bonds-Interest 2,397,222 2,538,920 2,215,292 (323,628) % 910 Serial Bonds-Principal 4,055,000 5,395,000 5,695, , % TOTAL OTHER FINANCING 6,452,222 7,933,920 7,910,292 (23,628) -0.30% 5200 INTERFUND TRANSERS 930 Capital Reserve Fund 1,312, % TOTAL INTERFUND TRANSFERS 1,312, BUDGETARY RESERVE 800 Reserve - 90,000 90, % TOTAL BUDGETARY RESERVE - 90,000 90, % TOTAL ALL FUNCTIONS $ 70,741,408 $ 73,894,508 $ 76,251,715 $ 2,357, % 13

20 PRELIMINARY GENERAL FUND BUDGET SUMMARY REVENUE ACCOUNT BUDGET BUDGET PERCENT INCREASE/ DECREASE 6000 REVENUE FROM LOCAL SOURCES $58,323,980 $ 60,006, REVENUE FROM STATE SOURCES 13,720,619 14,429, REVENUE FROM FEDERAL SOURCES 1,135,579 1,100, FUND BALANCE APPROPRIATION 714, , % 5.17% -3.08% 0.00% TOTAL REVENUE SERIES $73,894,508 $76,251, % REVENUES: Classified by type and source for the various funds of a school district, revenues are defined as additions to assets which do not increase any liability, do not represent the recovery of any expenditure, and do not represent the cancellation of certain liabilities or decrease in assets. (1) Revenue from LOCAL sources is the amount of money produced within the boundaries of the school district and available for use within the current fiscal year. (2) Revenue from STATE sources is revenue from funds produced within the boundaries of and collected by the State and distributed to school districts in amounts different proportionately from those which are collected within the district. (3) Revenue from FEDERAL sources is revenue from funds collected by the Federal Government and distributed to school districts in amounts that differ in proportion from those which h are collected within the district. (4) FUND BALANCE APPROPRIATION represents those funds available from prior year s resources that have not been reserved for special purposes. GENERAL FUND REVENUE $80,000,000 $60,000,000 $40,000,000 $20,000,000 Local Sources State Sources Federal Sources Fund Bal Approp $

21 PRELIMINARY GENERAL FUND BUDGET COMPARISON OF REVENUES BUDGET TO BUDGET CHANGE OVER FUNCTION/ BUDGET OBJECT DESCRIPTION ACTUAL BUDGET BUDGET $ % 6000 LOCAL SOURCES 6111 Current Real Estate Taxes $ 50,045,173 $ 51,686,946 $ 53,018,638 $ 1,331, % 6112 Interim Real Estate Taxes 405, , ,000 50, % 6113 Utility Taxes 73,021 70,000 73,000 3, % 6151 Earned Income Tax 3,860,952 3,400,000 3,550, , % 6153 Realty Transfer Tax 710, , ,000 48, % 6411 Delinquent Real Estate Taxes 1,498,661 1,350,000 1,450, , % Total Property Taxes, Penalties and Interest 56,593,172 57,508,682 59,191,638 1,682, % 6510 Investment Earnings 42,296 50,000 50, % Total Investment Earnings 42,296 50,000 50, % 6710 Revenue from Student Activities 23, Federal IDEA Pass-Through Revenue 565, , , % 6910 Rentals 87, , , % 6990 Refunds and Other Miscellaneous Revenue 227,261 50,041 50, % Total Other Local Sources 903, , , % TOTAL LOCAL SOURCES 57,539,072 58,323,980 60,006,936 1,682, % 7000 STATE SOURCES 7110 State Basic Subsidy 4,944,312 4,944,283 5,135, , % 7160 Tuition for Orphans 7, Migratory Children 3, Special Education 1,603,930 1,641,323 1,641, % 7310 Transportation 1,404,204 1,425,661 1,440,000 14, % 7320 Authority Rental Reimbursement 366, , ,000 (100,000) % 7330 Medical/Dental Reimbursement 88,334 86,000 86, % 7340 Property Tax Reducation Allocation 1,390,637 1,379,054 1,379, % 7501 Accountability Grant 128, , , % 7810 Social Security 1,087,238 1,160,811 1,121,313 (39,498) -3.40% 7820 Retirement 1,778,637 2,493,041 3,136, , % TOTAL STATE SOURCES 12,803,268 13,720,619 14,429, , % 8000 FEDERAL SOURCES 8514 Title I 453, , , % 8515 Title II 134, , , % 8516 Title III 144, , , % 8709 ARRA - Education Jobs Fund Medical Assistance Reimbursement 322, , ,000 (35,000) % 8820 Medical Asst. Reimb. For Admin. Claiming 9, TOTAL FEDERAL SOURCES 1,065,149 1,135,579 1,100,579 (35,000) -3.08% 0000 OTHER APPROPRIATIONS 0000 Fund Balance Appropriation - 714, ,320 (10) 0.00% TOTAL OTHER APPROPRIATIONS - 714, ,320 (10) 0.00% TOTAL ALL REVENUE SOURCES $ 71,407,489 $ 73,894,508 $ 76,251,715 $ 2,357, % 15

22 BUDGET EXPLANATION REVENUE 6111 Current Real Estate Taxes Real Estate Tax is the main source of revenue for funding the operation of the Kennett Consolidated School District. It is based on the assessed valuation of all taxable property within the School District. This year s tax is based on an assessed valuation of $2,003,093,785 and is estimated to be 96.5% collectable, resulting in a net budgetary value per mill of $1,932,986. The total millage required for is mills Interim Tax Interim Tax is revenue from the increase in assessed valuations of local property resulting from improvements or construction to that property during the school year. This year s estimate is based on historical data and the expected new construction in the area as determined by the number of building permits issued by municipalities Public Utility Realty Tax Lands and structures owned by public utilities and used in providing their services are subject to state taxation under Act 66 of The state collects and then distributes a prescribed sum among local taxing authorities including school districts and that payment of state tax in lieu of local taxes upon public utility realty Earned Income Tax Revenue received under Act 511 for taxes levied upon wages, salaries, commissions, net profits or other compensation of those who earn income within the taxing jurisdiction of the LEA. The School Board enacted an earned income tax effective October 1, 1997 in an effort to offset a portion of the real estate taxes Transfer Tax Transfer Tax is revenue collected by the County Recorder of Deeds on the value of all real estate property within the district boundaries sold during the year. This tax is equal to one half of one percent of the value of the property being sold and is paid at the time of the transfer. This year s estimate is based on historical data and anticipated housing trends for the area Delinquent Real Estate Tax Revenue received from taxes assessed and levied upon real property, which have become delinquent Investment Earnings Revenue received by investing school district money as it becomes available. This year s estimate assumes an average interest rate of 1% on investments plus additional earnings on invested cash balances in money market and savings accounts. Investments are made on a competitive basis with quotes obtained from major area banks, PLGIT, Pennsylvania Liquid Asset Fund pooled funds, and certificate placement programs Admissions Revenue from patrons of a school-sponsored activity, such as a concert or athletic event State Revenue Received From Other Pennsylvania Public Schools State revenue received from a Pennsylvania school district, area vocational-technical school or an intermediate unit as an agent of the Commonwealth of PA. 16

23 BUDGET EXPLANATION REVENUE 6832 Federal IDEA Revenue Received as Pass Through Federal IDEA revenue received by a school entity passed through from a primary recipient Rental Income Rental is revenue received from various governmental bodies, organizations, and civic groups for the rental of the district s buildings and facilities Tuition Income Tuition Income is the revenue collected from students with primary residence outside of the School District boundaries at a rate established annually by the Department of Education Miscellaneous Revenue from local sources not classified elsewhere Basic Education Funding Basic Education Funding is the primary source of state funding provided to local school districts. Each school district s share of this subsidy is based on a formula that takes into account the district s average daily membership (weighted), market value (Aid Ratio), personal income (Aid Ratio), Local Tax Effort, enrollment growth trends, and other provisions too numerous to discuss in this format Non-Public Transfers Revenue received by a school district from the Commonwealth of PA for temporary financial assistance on behalf of students enrolled in charter schools who attended a nonpublic school in the prior fiscal year. The grant payment is based on formula and is limited to the transition year Tuition (Section 1305 & 1306) Revenue received from the Commonwealth as tuition for children who are orphans and/or children who are placed in private homes by the court. Payments are made in accordance with Sections 1305 and 1306 of the School Code Migratory Children Revenue received from the Commonwealth of PA for attendance of Migratory Children in accordance with Section 2502 (Act 341 of 1959) and Section of the Public School Code Special Education Special Education revenue is reimbursement from the state for the operation of mandated special education programs. The subsidy is formula generated based on the total number of pupils in attendance at the school Educational Assistance Program (Tutoring) Revenue received as part of the Tutoring Initiative authorized by Act 48 of Transportation Transportation is a reimbursement to school districts for the operation of a school busing program in compliance with state laws and regulations. It is not required that each district operate a busing program, but if it does, it must comply with the state laws and regulations and is then eligible for reimbursement based on the number of students transported, miles driven, and other approved factors. 17