GENERAL FUND BUDGET PRESENTATION FISCAL YEAR April 22, 2014 John T. Scully Business Administrator

Act 1 –Overview and Limit Budget Challenges Budget Performance and Projection Budget to Budget Change Analysis Revenue Budget Expenditure Budget Debt Service Other Funds Agenda

Act 1 –Overview and Limit Act 1 of 2006 (Mandated Tax Increase Limit): Compliance with the tax limit index became mandatory for all school districts in 2006 The Act 1 index consists of the state SAWW (Statewide Average Weekly Wage) index and the federal ECI (Employment Cost) index The base index for Garnet Valley is 2.1%. The proposed GVSD tax increase (2.45%) is above the index. GVSD has not submitted to PDE for Act 1 tax exceptions and the Administration must continue to look for additional revenues or sustainable budget reductions to get us at or below the Act 1 index prior to final adoption

Budget to Budget Change Analysis Proposed Budget :$93,184,878 Current Budget :$87,454,320 Expenditure increase ($)$ 5,730,558 Expenditure increase (%)6.5%

Budget Challenges Residential and Commercial tax Appeals Limited tax base growth ($6,788,482) – amounts to approx. $198,000 in tax revenue Low interest income returns Level funding from the State Level funding from the Federal Government

Budget Challenges Increases in mandated expenditures – Special Education – State Retirement (PSERS) – Student Transportation Increases in other expenditures – Salaries – Employee Benefits – Textbook Adoptions – Utilities

General Fund Operating Budget (summary) Budget to ProposedCurrent Year Budget Proposed Budget SummaryBudgetProjectionBudgetChange Beginning Total Fund Balance10,350,9398,777,5477,982,1002,368,839 Revenues: Local76,226,97673,059,68472,520,2733,706,703 State13,064,54014,352,89513,269,988(205,448) Federal1,608,874 1,664,059(55,185) Fund Balance Applied0 Total Revenue Budget90,900,39089,021,45387,454,3203,446,070 Total Available Resources101,251,32997,799,00095,436,4205,814,909 Fund Balance Applied0 Avail Res.net of Fund Bal.Applied101,251,32997,799,00095,436,4205,814,909 Total Expenditure Budget93,184,87887,448,06187,454,3205,730,558 Total Ending Fund Balance8,066,45110,350,9397,982,10084,351 Fund Balance Composition:0 Committed2,410,1293,610,129 (1,200,000) Uncommitted5,656,3226,740,8104,371,9711,284,351 Total Fund Balance8,066,45110,350,9397,982,10084,351

Budget to Budget Change Analysis VS. BUDGETANTICIPATEDPROPOSED13-14 BUDGET DESCRIPTION INC/(DEC) EXPENSES: 100SALARIES 44,225, ,075, ,379, ,154, BENEFITS 21,835, ,029, ,583, ,747, PROFESSIONAL AND TECHNICAL SERVICES 2,146, ,712, , PURCHASED PROPERTY SERVICES 1,981, ,956, (24,857.00) 500OTHER PURCHASED SERVICES 2,102, ,399, , SUPPLIES 3,732, ,307, , PROPERTY , OTHER OBJECTS 4,881, ,831, ,397, (484,355.25) 900OTHER FINANCING USES 6,550, ,550, ,199, , TOTAL 87,454, ,448, ,184, ,730,558.49

Budget to Budget Change Analysis Wages & Benefits:Chng %Change $Total Wages: Administration1.85%$92,107$5,058,623$4,966,516$4,985,092 Transportation-3.81%($82,654)$2,084,337$2,166,991$2,037,736 Maintenance2.63%$53,207$2,074,568$2,021,361$1,995,030 Paraprofessionals2.44%$120,375$5,061,529$4,941,154$4,576,625 Secretaries & clerks1.40%$17,366$1,253,519$1,236,153$1,103,701 Teachers3.30%$953,978$29,846,995$28,893,017$28,208,917 Total Wages Change2.61%$1,154,377$45,379,569$44,225,192$42,907,101 Benefits: Medical3.84%$325,505$8,794,450$8,468,945$8,502,484 Dental-4.63%($26,753)$551,250$578,003$580,000 Prescription10.33%$189,669$2,025,579$1,835,910$1,794,470 Cost Share103.36%($457,428)($900,000)($442,572)($585,000) FICA1.33%$43,987$3,339,557$3,295,570$3,230,575 PSERS35.03%$2,481,088$9,564,248$7,083,160$5,077,553 Life insurance2.83%$1,900$69,000$67,100$65,910 Disability0.25%$300$120,000$119,700$119,330 Tuition0.00%$0$353,080 Unemployment comp0.00%$0$98,236 $171,836 Workers comp50.10%$189,593$568,000$378,407$355,231 Total Benefits Change12.58%$2,747,861$24,583,400$21,835,539$19,665,469 Total Wages & Benefits5.91%$3,902,238$69,962,969$66,060,731$62,572,570

Budget to Budget Change Analysis Employee Benefits Budget Actual Budget Projection Budget % Inc/(Dec) Medical 6,714,364 7,784,694 7,480,747 8,160, % Prescription 2,119,447 1,835,910 2,027, % Dental 527, , , , % Vision 92,158 94, , , % Employee Cost Share (585,000) (442,572) (900,000) (985,500)9.50% Life 37,261 67,100 69, % Tuition reimbursement 268, , % Disability 113, , , % Workers/Unemp Compensation 490, , , % Social Security 3,219,769 3,295,570 3,339, % Retirement 5,794,635 7,672,530 10,166, % Total 18,791,993 21,835,539 21,029,280 24,583, %

Budget to Budget Change Analysis PSERS History Budget School Year Net GVSD PSERS Cost Net Annual Increase / (Decrease) Gross Contribution Rate Net Contribution Rate $1,023, %3.230% $1,237,111$213, %3.570% $1,338,546$101, %2.380% $1,390,672$52, %2.390% $1,485,932$95, %4.110% $1,759,091$368, %4.330% $2,697,373$938, %6.180% $3,719,480$1,022, %8.470% $4,782,124$1,062, %10.700%

Garnet Valley School District Millage Analysis Assessed Value 14-15: $2,451,958,997 Assessed Value 13-14: $2,445,170,515 Increase in Assessed Value $ 6,788,482 (2.70%) District revenue from change in assessed value: x $6,788,482 = $198,227 increase

Garnet Valley School District Millage Analysis Concord & Chester Heights: – Proposed Mills 14-15: – Current Mills 13-14: – Mill Rate Increase: (2.45%) Bethel: – Proposed Mills 14-15: – Additional Mills DCCC:.3500 – Total Proposed Mills: – Current Mills 13-14: – Mill Rate Increase: (2.45%)

Garnet Valley School District Budget Millage Analysis Concord & Chester Heights: – Proposed Mills : – Current Mills : – Mill Rate Increase: (2.45%) Bethel: – Proposed Mills : – Additional Mills DCCC:.3500 – Total Proposed Mills: – Current Mills 13-14: – Mill Rate Increase: (2.45%)

Garnet Valley School District Budget Capital Projects Fund Beginning Fund Balance 7/1/2014 $ 525, Revenues: Tranfers From Other Funds $ - Bond Proceeds $ - Total Additions $ - Expenses: Gesa Project $ 315, Maintenance Equipment $ - Maintenance Projects $ - Total Expenses $ (315,000.00) Ending Fund Balance 6/30/2015 $ 210,000.00

Garnet Valley School District Budget Capital Reserve Fund Beginning Fund Balance 7/1/2014 $ 2,700, Revenues: Tranfers From Other Funds $ - Bond Proceeds $ 1,250, Total Additions $ 1,250, Expenses: Technology Equipment $ 712, School Buses $ 392, Maintenance Equipment $ 145, Financial - H/R Software $ 225, Total Expenses $ (1,475,000.00) Ending Fund Balance 6/30/2015 $ 2,475,000.00

Garnet Valley School District Budget Food Service Fund Beginning Fund Balance 7/1/2014 $ 88, Revenues: Breakfast/Lunch Sales $ 1,594, NSLP Subsidy $ 277, Catering Sales $ 55, Total Additions $ 1,926, Expenses: Cost of Food $ 862, Vendor Rebates $ (125,277.00) Salaries & Benefits $ 928, Direct Expenses $ 110, Management/Administrative Fee $ 150, Total Expenses $ (1,926,706.00) Ending Fund Balance 6/30/2015 $ 88,298.00