1. Dr. Alex Anemone, Superintendent Mr. Robert Brown, Interim Business Administrator April 27, 2015

2.  Davor Gjivoje – President  John Flynn – Vice President  Kim Macaulay  Howard Kotkin*  Abi Singh*  * members – Facilities and Finance Committee

3. $ Amount$ Change% Change Local Tax Levy (includes banked cap and health benefits exemption) $10,068,785$323,859+3.32% Funds 11, 12 (operating budget, capital outlay) $10,492,717$237,701+2.31% TOTAL BUDGET$11,065,630$219,945+2.02%

4. TimelineBudget Process Fall 2014Facilities and Finance Committee meetings; Administrative meetings 11/3/1415/16 Budget Guidelines unanimously approved by BOE 12/5/15Preliminary Budget Report I 2/2/15Preliminary Budget Report II 2/27/15State Aid 3/16/15Tentative Budget unanimously approved by BOE 3/18/15Tentative Budget submitted to ECS 3/27/15Tentative Budget approved by ECS 4/27/15Public Hearing on the Budget 7/1/15Fiscal year begins

5.  Annual presentation required by NJDOE.  Advertised by district in April 9 edition of the Observer-Tribune.  Presentation includes: ◦ Budget highlights ◦ Revenue ◦ Expenses ◦ Tax levy impact

6.  Fiscally conservative budget - increase of only 2.02%!  Meets all 15/16 budget guidelines.  Maintains staffing configuration, co- curricular activities, and small class size.  Low administrative costs ◦ Regional limit = $2,086 per pupil ◦ HTS = $1,968 per pupil  Budgets money for professional development and curriculum writing.

7.  Budgets money for complete renovation of 6 (original) bathrooms in Elementary School.  Strong emphasis on technology integration.  Provides adequate financial resources for yet- to-be named 15/16 district goals.  This budget allows for HTS to continue on its upward trajectory and maintain its position as one of the premier PK-8 public school districts in New Jersey.

8. Budget Year(s)Local Tax Levy Increase 1997-2011 (average)6.01% 2011-20121.96% 2012-20131.78% 2013-20141.50% 2014-20152.81% (includes banked cap and health benefits exemption) 2015-2016 Local taxes ~ 91% of total budget 3.32% (includes banked cap and health benefits exemption)

10. $ State Aid$ Change% Change 2009-2010$364,473N/A 2010-20110($364,473)(100%) 2011-2012$181,191 N/A 2012-2013$225,137$43,94624.3% 2013-2014$225,137$00% 2014-2015$233,677$8,5403.8% 2015-2016$233,677$00%

12. 2009-20102015-2016 Categorical State Aid$364,473$233,677 Categorical State Aid as a Percentage of the Budget 3.97%2.11%

13. Year Saved$ AmountYear Expires 2012-2013$82,496 Added to 15/16 budget 2015-2016 2013-2014$74,3902016-2017 2014-2015$0N/A 2015-2016$0N/A

14. Budget Year Ending Budgeted Fund Balance Added to Budget Year State Aid for that Budget Year June 30, 2010$3,0282011-2012$181,191 (50% banked) June 30, 2011$3202012-2013$225,137 June 30, 2012$174,8902013-2014$225,137 June 30, 2013$274,5612014-2015$233,677 June 30, 2014$274,6802015-2016$233,677

16. 2014-2015$ Changes2015-2016 Local Tax Levy$9,254,883$347,003$9,601,886 Tuition PK-8$52,300$7,700$60,000 Transportation Fees$10,000($1,000)$9,000 Building Usage Fees$9,000($1,500)$7,500 Misc. Revenue$15,000$17,614$32,614 State Aid (categorical)$233,677None$233,677 Extraordinary Aid (SE)$200,000($10,000)$190,000 Budgeted Fund Balance$274,561$119$274,680 Capital Reserve$205,595($122,235)$83,360 Special Revenue$82,481($12,368)$70,113 Local Tax Levy (Debt Sv.)$490,043($23,144)$466,899 Debt Service Aid$37,682($1,781)$35,901 TOTAL$10,865,222$200,408$11,065,630

17. 2014-2015$ Changes2015-2016 Gen. Ed. Instruction$2,399,826($60,401)$2,339,425 Sp. Ed. Instruction$994,441$139,000$1,133,441 Sp. Ed./Tuition$2,715,293$64,200$2,779,493 Attendance/Health/LMC$190,492$17,886$208,378 Impr. Instruction$159,875$12,823$172,698 Supp. Svc. Gen. Admin.$309,077($11,423)$297,654 Supp. Svc. Sch. Admin.$94,712$12,480$107,192 Central Svc./IT$132,926$21,874$154,800 Operation/Plant$894,781($25,722)$869,059 Transportation$878,624$77,386$956,010 Employee Benefits$1,276,589$111,834$1,388,423 TOTAL$10,046,636$359,937$10,406,573

18. 2014-2015$ Changes2015-2016 Total – Fund 11 Operating Budget $10,046,636$359,937$10,406,573 Total – Fund 12 Capital Outlay $208,380($122,236)$86,144 Total – Fund 20 Special Revenue $82,481($12,368)$70,113 Total – Fund 40 Debt Service $527,725($24,925)$502,800 TOTAL$10,865,222$200,408$11,065,630

19. Medical Benefits + Rx State Aid (Categorical) Special Revenue (Fund 20 – Federal) 2012-2013$821,511$225,137$156,810 2015-2016$1,055,321 (rates not official until 5/1/15) $233,677$82,481 Variance+$233,810 +28.5% +$8,540 +3.8% ($74,329) (47.4%)

20. 20142015 Total Taxable Assessment $2,027,888,710$2,019,860,930 Average Residential Assessment $1,196,734$1,194,558 Current Tax Rate0.465 Proposed Tax Rate0.481 Difference+0.016 +3.44% $191/year/average house

21.  In 2012, Gov. Christie signed legislation that eliminated the need for the public to vote on the school budget if it remains at or below the 2% tax levy cap, including specific exemptions such as banked cap or the health benefits waiver.  On 2/13/12, the BOE adopted a resolution to move the annual school election to November.  Since the 15/16 budget is within the cap, it will not be on the ballot in November. The public will vote for BOE members in the general election on Tuesday, November 3, 2015.