WORKING BUDGET PRESENTATION September 12, 2013

Revenue Unaudited Carry Forward Balance - $5,934, Increased $564, from draft budget (only as a result of additional revenue from Impact Aid) General Real Property - $3,236,950 FY 13 actual tax collections = $3,269, Board adopted the compensating rate, meaning should generate the same revenue. We budgeted conservatively in case of a decrease in the collection rate of about 1%. PSC (Public Service Companies) - $95,000 Left Constant 3 year average is $106, year average is $102, Over the last 13 years we have seen a high of $139, in FY 05 to a low of $75, in FY09. Delinquent Property Tax - $50,700 Left Constant FY 13 actual = $52, year average is $52, year average is $53,097.75

Revenue Motor Vehicle - $425,000 Increased by $25,000 Consistently increased since year average = $431, year average = $418, FY 13 Actual Collections = $442, KDE Tax Reports  $484,969 Utility Tax Rate - $875,000 Left constant 3 year average = $883, year average = $889, FY 13 Actual Collections = $882, Revenue in Lieu of Taxes - $650,000 The FY10 additional revenue was $1,128, (TVA was approximately $642, and the additional money above that amount was new Impact Aid money) FY 11 Actuals were $1,457, (TVA money decreased this year to $564, which is down $77,204.16; Impact Aid - $893,767.97). FY 12 Actuals are $1,443, (TVA money decreased again this year to $535, which is down $29,008.68; Impact Aid - $908,438.15). FY 13 Actuals are $4,771, (TVA money slightly increased to $536,130.60; Impact Aid - $4,235,460.03). We simply cannot make an accurate prediction for Revenue in Lieu of Taxes. We are budgeting based on TVA being approximately $500, and Impact Aid being $150, for a total of $650,000 mentioned above.

Revenue Interest Income - $30,000 Left Constant FY 10 was 97, FY 11 was $36, FY 12 was $25, FY 13 was $31, Interest is based on interest rates and the amount of funds available for investing

SEEK Trend - Trigg Slight Increase since the Tentative Budget - $12,458 $49,056 less than FY Per Pupil $ 3, $ 3, $ 3, $ 3, $ 3, ADA Final Seek $ 7,110, $ 6,487, $ 6,097, $ 6,954, $ 6,808, $ 6,759, SFSF $ 662, $ 552, Total State Money $ 7,149, $ 6,650, $ 6,954, $ 6,808, $ 6,759, Difference over Prior Year $ 39, $ (499,304.00) $ 304, $ (146,162.00) $ (49,057.00) $ 3, $ 3, $ 3, $ 3, $ 3,565.05

Revenue (con’t) Restricted State Revenue - $0 (now in Fund 2) Highly Skilled Educator Program (MOU on Agenda tonight) Medicaid Reimbursements - $1,500 Same as in the Tentative Budget We have not submitted Medicaid Reimbursements for FY 13, but plan to start again in FY 14. Therefore, we have estimated that the reimbursements will produce a revenue of approximately $1,500 Total Revenue for Fund 1 Fund 1 Budget for FY 13 was $17,567,  Fund 1 Tentative Budget for FY 14 is $18,005,  Fund 1 Working Budget for FY 14 is $18,184,190.81

Expenditures Includes 3.5% of base SEEK per student to councils for instruction Changes in amounts for retirement (KTRS & CERS) - County Retirement decreased this year (18.89%, down from 19.55%) for Classified Employees. KTRS is increased to 1.5% (up from 1.0%) that is matched locally for any Certified Employee. Increase in amounts for salaries due 1% salary increase approved at the May meeting. Fund transfers show the money earmarked for the KETS match that is due in FY14. The KISTA payment is budgeted at $25,714- paying for buses There are 2.5 buses in the budget for a total of $225,000 (including additional money to cover the cost of cameras on the buses) Budgeted $230,000 in Court Judgments to cover KSBA Assessment Budgeted $180,000 for NxGL Learning Initiatives. $30,000 per school $60,000 district level (most professional development costs to train teachers in the initiatives) Increased some salary codes to offset cuts to Fund 2 cuts (see notes on Fund 2)

Controlled Expenditures (Impact Aid Primarily)

FUND 2 – SPECIAL REVENUE- $2,184,206 Fund II (Special Revenue) includes restricted funds designated for specific purposes. Linda has attached a description of each of the Fund 2 Projects; on the last page of the document you will find a chart that details the cuts and shows how the FY 14 funding compares to the FY 13 funding for the various programs You will notice that the Federal Sequestration is impacting our district with Federal Funds (i.e., Title I, Title II, IDEA-B, etc.). Most of the cuts are being absorbed within that funding source. Cuts have been significant in Fund 2 programs over the last few years, causing the general fund to have to pick up additional expenses, with even deeper cuts as a result of sequestration. State programs are all being reduced for FY 14, except for Vocational Center (+34,301), Staff Development (+$136.00), Safe Schools (+6.00), Community Education (unchanged), and Gifted & Talented (unchanged). $10,000 Grant for being one of the first districts to raise the Compulsory Attendance Age to 18 As you probably remember, there must be a match in fringe benefits in federal programs, currently at %. Additionally, insurance (medical and life) and state administration fee are taken from federal programs, which is not done for employees paid from Fund 1.

FUND 310 – CAPITAL OUTLAY- $434, The revenue is based on information received from KDE (100 / ADA) and our interest rates. The expenses are based on the bond payment and the balance is budgeted in construction services. This is another controlled expense. As a reminder: Balance from Capital Outlay is escrowed as of June 30 of odd number years for any SFCC offer.

FUND 320 – BUILDING FUND- $797, The new revenue is based on the required nickel, information received from KDE, and interest rates. The expenses are based on bond payments and the balance is budgeted in construction services. Again, this is a controlled expense. As a reminder: Balance from Building Fund is escrowed as of June 30 of odd number years for any SFCC offer.

FUND 400 – DEBT SERVICE – $797, Fund 400 is new fund required by the Kentucky Department of Education to handle Debt Service. This money is already shown FUND 310 and FUND 320 and does not impact our overall total budget. Basically a flow through account – money transferred from 310 and 320 to make bond payments.

FUND 51 – SCHOOL FOOD SERVICE- $1,563, We often refer to Food Service as a “stand alone” business. The board does support the program with in – kind contributions, such as space, utilities and insurance. Probably not going to be Required to Increase Meal Prices The program is in good financial standing at this time.

FUND 52 – CHILD CARE- $144,850 Trigg Tots is a break – even endeavor. Similar to Fund 51, it is a “stand alone” business. Similar to our Food Service program, the district does provide space, utilities and insurance. Expenses are based on the 2014 anticipated salary and fringe costs and projected food costs.

Total Tentative Budget - $23,308,733.85