FY2017 Preliminary Budget

and Tax Warrant

Appoquinimink School District
July 12, 2016 Presentation

Preliminary Budget
What we will cover
Budget process and timeline
Goals
Tax rates
Major changes from last years final budget
Preliminary budget
Fund balances

Process and timeline

May/June
Forecast final revenues/expenditures
Meet with schools and departments to discuss
upcoming needs
Make Superintendent and Financial Advisory
Committee aware of potential major budget issues
Project next fiscal year revenues based on
forecasted final revenues/expenditures, draft State
budget, and other known factors that may affect the
budget

Process and timeline

NOTE: New fiscal year begins July 1. State pre-loads appropriations
in Appoquinimink School Districts account (typically 75%)

June/July
Draft annual tax warrant
Draft preliminary budget based on final State budget
and prior year figures
Preliminary budget and tax warrant reviewed by
Financial Advisory Committee (FAC)
Preliminary budget and tax warrant presented to the
Board for approval

Process and timeline

October/November unit count finalized by DOE
December/January balance of State money
allocated to districts; prepare final budget
January/February final budget reviewed by FAC,
presented to Board
April through July if needed, amendments to the
final budget are considered by the FAC and Board

Process and timeline

Monitoring and reporting
Finance Director monitors appropriation balances
and expenditure budgets
Payroll staff monitor reports after each payroll
disbursement
Finance staff, schools and departments review
reports weekly/monthly as applicable
Monthly reporting to FAC, Board, public
Annual audits performed by State Auditor of
Accounts (results posted on AoA web site)

Budgetary Goals
Goals
Support the Districts mission and goals
Develop a transparent budget document that
tells the big-picture story regarding our revenue
and expenditure budgets, fund balances, tax
rates and revenue, and bonded debt
Build and maintain our reserve

Tax rates
Tax Warrant
Operating:

no change
Debt Service: no change
Match (Minor Capital, Tech, Extra Time, Reading
and Math Specialists): -0.1 per $100 overall
Tuition: +7.76 per $100
Per penny tax revenue is up $7,060 ($205,761)

Major changes from last FY

In general
OEC

(Other Employment Costs) went up from

30.48% of payroll to 31.49%, a difference of
1.01% (OEC costs increasing 3.3% over FY16)
Projected enrollment change used for budgeting
is +4.0%
Projected inflation for budgeting purposes is
+1.0% (based on recent CPI figures)

Major changes from last FY

Revenue Budget Projections
Div

I salaries (State formula salaries): $4.7M increase

over FY16 actual based on steps, OEC and benefit
cost increases, and enrollment growth
Div II, Div III increased based on enrollment growth
Homeless Transportation, Unique Alternatives figures
based on FY16 final and known changes/trends

Major changes from last FY

Total

local tax revenues increased due to growth

in assessment base ($7,060 per penny) and
tuition tax rate increase
Federal funds total is up 4.2% (preliminary
allocations)
Charter payout estimate set to 110% of FY16
final

Major changes from last FY

Expenditure Budget Projections
Div I, Federal, Trans adjusted to match revenue
99920000/99999 Curriculum/General increased
$558K due to

Read180/Math 180 program

Dual Enrollment coursework
Blended Learning support
Appoquinimink Aspiring Administrators program
continuation (original grant ran out)

Major changes from last FY

99920000/99999

Curriculum/General increased
$558K due to (continued)

New Pathway costs

New professional development enhancements
Response to Intervention support
Testing (PSAT, SAT, MAP)*
Graduation*

* Frees up some funds at schools

Major changes from last FY

99920600/99999

Technology/General increased
to cover costs of technology replacement, middle
school tablets, and infrastructure needs
99940400/99999 Div III/Local Salaries increased
$2.77 million due to enrollment growth, local
raises, steps, OEC rate increases, programmatic
additions (Teacher-Leader Program $150K,
academic EPERs $34K)

Major changes from last FY

99960100/95422

Maintenance/Portables
decreased $957K to just cover lease payments
999602000/99999 Utilities/General increased
$140K for network bandwidth increases
Tuition - $815K increase due to local raises,
OEC rate increase, increased needs-based
special education enrollment

FY2017 Revenue Budget

State Funds (Div I/II/III/Other)

91,828,756

Minor Capital Projects State Share

Local Funds
Current Operations
Tuition
Match Taxes
Debt Service
Choice and Charter (payments)
Other Local
Federal Funds

762,252
19,528,196
10,401,150
1,666,828
6,414,055
(1,424,851)
4,493,500
3,084,151

Construction (State + Local)

85,000
TOTAL

136,839,038

FY2017 Revenue Budget

Sources of Revenue
(excludes Major Capital, Debt Service, Local Cafeteria)
State

Local

Federal

FY 2017

72.8%

24.8%

2.4%

FY 2016

72.8%

24.7%

2.5%

FY 2015

72.9%

24.5%

2.6%

FY 2014

71.8%

25.9%

2.3%

FY 2013

74.9%

22.9%

2.2%

FY 2012

72.6%

23.1%

4.3%

FY2017 Expenditure Budget

Operating Budget

117,717,208

Tuition
Special Placements
Needs-Based

2,465,000
7,860,000

Match Tax Funds (excluding Minor Cap)

1,155,000

Local Cafeteria

3,185,000

Major/Minor Capital Improvements

Major Capital Projects
Minor Capital (State and Match)

85,000
1,270,420

Local Debt Service

5,627,536
TOTAL

139,365,164

Fund balances
Operating Fund
Starting fund balance July 1 (unencumbered) 8,695,427
Projected surplus (or shortfall) of revenues
over expenditures, FY17
(3,273,974)
Projected final fund balance (unencumbered) 5,421,453

This is our local carryover amount.

It includes $4,500,000 in our Reserve Appropriation.

Fund balances
Local Debt Service Fund
Starting fund balance July 1 (unencumbered) 3,444,282
Projected surplus (or shortfall) of revenues
over expenditures, FY17
801,519
Projected final fund balance (unencumbered) 4,245,801

Fund balances
Tuition Fund
Starting fund balance July 1 (unencumbered)
Projected surplus (or shortfall) of revenues
over expenditures, FY17
(28,961)
Projected final fund balance (unencumbered)

31,669

2,708

Fund balances
Minor Capital Projects Match Fund
Starting fund balance July 1 (unencumbered) 185,002
Projected surplus (or shortfall) of revenues
over expenditures, FY17
119,458
Projected final fund balance (unencumbered) 304,460

Fund balances
Reading and Math Specialists Match Fund
Starting fund balance July 1 (unencumbered) 98,349
Projected surplus (or shortfall) of revenues
over expenditures, FY17
(7,262)
Projected final fund balance (unencumbered) 91,087

Fund balances
Technology Match Fund
Starting fund balance July 1 (unencumbered) 22,476
Projected surplus (or shortfall) of revenues
over expenditures, FY17
(18,393)
Projected final fund balance (unencumbered) 4,083

Fund balances
Extra Time Match Fund
Starting fund balance July 1 (unencumbered) 459,688
Projected surplus (or shortfall) of revenues
over expenditures, FY17
(90,144)
Projected final fund balance (unencumbered) 369,544

Fund balances
Cafeteria Fund
Starting fund balance July 1 (unencumbered) 476,549
Projected surplus (or shortfall) of revenues
over expenditures, FY17
0
Projected final fund balance (unencumbered) 476,549

FY2017 Preliminary Budget

Questions?