Presentation on theme: "2014 BUDGET Budget Hearing: October 14, 2013 Budget Adoption: October 28, 2013."— Presentation transcript:
2014 BUDGET Budget Hearing: October 14, 2013 Budget Adoption: October 28, 2013
PROPOSED BUDGET PRESENTATION Five Questions about this Proposed Budget: 1.How much do we propose to spend and on what would we spend it? 2.What revenues and resources will we have to support the needed expenditures? 3.Will our budget be balanced? 4.What does all this mean to the taxpayer? 5.What is our long-term outlook?
FIRST: The Required State of Indiana Budget Forms and Related Budget Documents
DLGFs State Budget Forms for 2014 Form 1 – Detail of Appropriations Form 2 – Projected Revenues Form 3 – Summary Totals of Appropriations and Levies Form 4A –Another Summary of Appropriations Form 4B – Calculation of Levies Required Supporting Documents: Current Year Worksheets Debt Service Worksheets CPF and Bus Replacement Plans Full copies of all state required budget forms and documents for 2014 are available in our budget book (hard copy available upon request) which is published on our website.
Advertised and Actual The Advertised Budget Required format Required forms Rates, levies, calculations pre-ordained or strongly recommended because of statutory process and state level oversight/direction The Actual Budget Anticipated revenues based on formulas and laws Anticipated expenditures based on continuing contracts and other obligations Projections!
DISCLAIMER: THE ESTIMATED EXPENDITURES, PROJECTIONS OF COSTS, TAX RATES, LEVIES, AND APPROPRIATIONS, AND ALL OTHER INFORMATION AND DATA PRESENTED HEREIN ARE INTENDED FOR INFORMATIONAL OR ANALYTICAL USE ONLY AND MAY NOT BE USED FOR ANY OTHER PURPOSE. THE STATE FORMS SHOWN IN OFFICIAL BUDGET (STATE FORMS 1 THROUGH 4B, THE CAPITAL PROJECTS PLAN, THE BUS REPLACEMENT PLAN, AND ALL OTHER STATE REQUIRED RELATED DOCUMENTS) CONSTITUTE THE OFFICIAL 2014 BUDGET OF THE ZIONSVILLE COMMUNITY SCHOOLS. DIFFERENCES BETWEEN THE AMOUNTS SHOWN ON THE OFFICIAL STATE FORMS AND DOCUMENTS AND ITEMS IN THIS PRESENTATION, IF ANY, ARE SPECULATIVE, BASED ON ASSUMPTIONS ABOUT CERTAIN FUTURE EVENTS, AND CANNOT BE CONSTRUED AS CONTRADICTIONS OF OR DISCREPANCIES IN OR WITH THE OFFICIAL BUDGET. FURTHER, THE PROJECTIONS AND ESTIMATES SHOWN, WHILE BASED ON THE MOST CURRENT INFORMATION AVAILABLE AT THE TIME OF THEIR FORMULATION, ARE SUBJECT TO UNKNOWN OR UNEXPECTED EVENTS AND CONTINGENCIES AT ANY TIME DURING THE BUDGET YEAR. THE ACTUAL FINANCIAL RESULTS ACHIEVED MAY THEREFORE BE MATERIALLY DIFFERENT FROM THE PROJECTIONS AND ESTIMATES SHOWN.
2014 BUDGET: REVENUES How much revenue will we have? What are the sources of our revenues?
The last time we had per pupil funding this low was in 2002, with nearly 2,000 fewer ZCS students to serve! Increasing enrollment Declining funding REVENUES
Inflation adjusted 2003 dollars Per Pupil Funding Referendum
State Funding Property Taxes Other REVENUES
These are property taxes ordered by DLGF but which are not required to be paid by taxpayers = loss to schools. REVENUES
2014 BUDGET: EXPENDITURES How much will we spend and on what will we spend it?
Proposed Expenditures Teachers Staff Debt Service
Proposed Expenditures Teachers Salaries and Benefits All Non- Teaching Staff Salaries and Benefits But See Next 2 Slides!!!
100% of Referendum Fund will be used for teacher salaries and benefits! These are direct instructional costs! Proposed Expenditures
Teachers Salaries and Benefits
Proposed Expenditures About Debt Service (Debt is Going Down!) No new debt since 2005 $61,905, in principal paid off since 2005 to date We expect to refinance the 2005 bond issues in 2015, which will be nearly 60% of all debt then, for a significant savings This budget continues our ongoing debt reduction
No New Construction Debt? No New Construction Debt? Zionsville Community Schools Projected enrollments through school year do not exceed current capacities at the elementary and middle schools (but some rebalancing may be required in the future) The capacity of ZCHS is projected to be exceeded in The use of 2005 bond proceeds for ZCHS should add sufficient capacity for the next several years
Zionsville Community Schools Total Debt drops below $200 million by year-end As of 12/31/2014, debt will be just under $185 million For 2015, the 2005 Bonds outstanding to refinance will be $103,560, Summary of the immediate future:
Recommendation: No New Construction Debt Window The goal of the Board and Superintendent is achievable for the next several years and should be acted upon. Appropriate parameters, including a delineation of the length and termination plan for the No New Debt declaration, must be formulated. An acknowledgement of variables/caveats and unknowns that could impact our situation must be incorporated and communicated well.
32.1% Salaries and Benefits Estimated Expenditures 21.7% Utilities & Insurance 24.2% Building Maintenance
Chart is per official plan. Actual expected 2014 purchases will be replacement of four or (possibly five depending on price) Type D buses. Estimated Expenditures
2014 BUDGET: CASH FLOWS AND CASH BALANCES Will our budget be balanced? YES
Projected Calendar Year 2014 Projected Calendar Year 2015 Projected School Year
Tax Rates and Levies
Local property tax rates compared with peer communities We were 15 th last year too among this same group of peers.
2013 Actual Tax Rate Effective Tax Rates 90% of Homeowners pay LESS than the actual tax rate. Tax Rates and Levies 2014 Estimated Tax Rate
Under $100K Tax Rates and Levies Over $1 million Mean ZCS home assessed value is $335,142
2014 BUDGET PRESENTATION SUMMARY: The five questions about the proposed budget: 1.How much would we actually spend and what will we spend it on? An estimated $67.6 million will be expended. 2.What revenues and resources will we have to support the needed expenditures? All combined, revenues should be about $67.8 million, which will be made up of approximately 49% State Funding, 47% Property Taxes, and 4% Other Sources. 3.Will our budget be balanced? We expect the General Fund to be balanced. CPF may need to use some reserves for phase II of the high school roof project. All other funds will be balanced. 4.What does all this mean to the taxpayer? The total property tax bill for 2014 should be the same as 2013 for nearly all homeowners and rental and agricultural property, with commercial property likely seeing a small increase. 5.What is our long-term outlook? With the operating referendum in place, our outlook is stable through However, the state funding formula is already set by law. A continuation of the current statutes will cause steady decline for ZCS at least through FY2018. Left unchanged, this will produce higher class sizes and financial instability adversely impacting our core educational mission. Our foremost financial challenge is to avert this danger to ZCS through effecting fundamental legislative change.