Paw Paw Public Schools Budget Amendment Presentation 2016/2017 December 14, 2016

Financial Goal Policy 2201 10% Fund Equity Calendar Conservative Planning Budgets to the Board: Adopt Preliminary Budget prior to start of school year Mid year revision to reflect changes we know about End of year revision

Budget Amendment 2016/2017 General Fund School Service Fund Cafeteria Child Care Debt Information

Foundation $7,511 Foundation allowance (with equity and other payments rolled up into it) The fall count day is the 1st Wednesday in October to be within federal rules for special education related student data The funded count blend is based on 90% of the October count and 10% of prior February count. (This is consistent with last year) Students changing districts outside the county between count days will also impact funding for the year. Last year we had a net gain of 2 students. This is partially paid through local taxes (the 18 mills) with the majority paid to us by the State. Cash to districts is significantly behind expenditures. Local taxes are remitted to us after people pay the townships. Basically this means January through March. State Aid is paid in 11 installments starting October and ending in August after the end of the school year.

Enrollment Total K-12 Alt. Ed. Other Oct. Actual Count 2,220 2,100 111 9 Projected Count 2,203 2,090 104 9 Inc. (Dec.) 17 10 7 0 Allow. for error in projection 10 10 0 0 Feb count 2,185 2,092 84 9 Blended (funded) count Projected Blend 2,192 2,081 102 9 16/17 blended count 2,217 2,099 108 9 Increase in blended count 24 18 6 0

General Fund 2016/2017 Preliminary Budget (adopted June 2016) Revenue and Sources $ 20,091,867. Expenditures and Uses (20,242,636) Net Excess of Expenditures $ (150,769) Expected 6/30/17 total fund balance $4,403,947 21.76% Expected 6/30/17 unassigned fund balance $3,411,314 As % of total expenditures 16.85%

Funding changes State funding Per Pupil Foundation Grant (PPFG) rates were basically finalized when we presented our preliminary budget. The final amount was $7,511 which was the same as our budgeted rate. The October count enrollment was higher than estimated by 17 students total. We also allowed for a 10 student count error in our projection based on the 2015/16 experience. After considering these our projected State foundation revenue budget increased by $182,000 State Special Education Hold Harmless currently computes at a reduction of $60,000 for this school year.

Funding changes (cont.) The state increased the 147c retirement flow through by $160,000. This will have the same increase in expenditures as we immediately return the funds to the state as a payment into the retirement system. We added services to At Risk state aid program to use approximately $70,000 in carryover funds. This will also result in an increase in our expenditures by the same amount. The VBISD flow through funding is reduced $12,000. The net impact was an increase in revenue of approximately $353,000.

General Fund 2016/17 Other changes Actual ending fund balance at 6/30/16 was $409,000 more than projected which increased the beginning fund balance from preliminary estimates. This was a combination of increased revenues and fewer expenditures. It is a 2% variance of the total expenditure budget.

Expenditure Budget Changes Staffing changes and revised benefit costs are included in this presentation. This includes summer notices related to turnover, and summer staffing assignment changes. We did determine a need to increase staffing levels at the MS and in special education. This budget reflects the actual staffing as we currently anticipate it. Benefit budgets were adjusted to current insurance cost and retirement contribution expectations. The retirement flow through was increased $160,000 to match the increased revenue. The At Risk grant expenditure budget was increased to match the increased $70,000 revenues. Other 15/16 expenditures were reviewed and budget lines were adjusted as needed. The net impact is an increase in expenditure budget of approximately $320,000.

Where are we now? Preliminary 16/17 Budget Revised 16/17 Budget Revenue $ 20,091,867. $20,445,113. Expenditures (20,242,636) (20,562,181) Net deficit (150,769) (117,068) Beginning FB (Unassigned & Assigned) 4,554,716. 4,874,526. Ending FB (Unassigned & Assigned) $ 4,403,947. $4,757,458. % of Expenditures 21.76% 23.14% Ending Unassigned Fund Balance $ 3,411,314. $3,697,532. 16.85% 17.98%

General Fund 2016/2017 Revised Budget Ending Balance Estimates @ 6/30/2017 Assigned for Maintenance $ 424,646 Assigned for Technology 441,703 Assigned for Community Education 193,577 Subtotal Assigned Fund Balances $ 1,059,926 Unassigned Fund Balance 3,697,532 Total Assigned and Unassigned Fund Balance 6/30/17 $ 4,757,458 23.14% Unassigned Fund Balance @ 6/30/17 $ 3,697,532 17.98%

School Service Fund Revised 2016/17 Budget Revenue & incoming transfer $ 1,050,000. Expenditures & outgoing transfer (1,045,000) 2016/17 Excess Revenue $ 5,000. Est. Ending Fund Balance @ 6/30/17 $ 185,668 17.77%

Cafeteria Revised 2016/17 Budget Revenue & incoming transfer $ 995,000. Expenditures & outgoing transfer (990,000) 2016/17 Excess Revenue $ 5,000 Est. Ending Fund Balance @ 6/30/17 $ 145,874 14.73%

Child Care Program Revised 2016/17 Budget Revenue $ 55,000. Expenditures (55,000) 2016/17 Excess Expenditures $ 0.

Debt 2016/2017 Millage by Debt Issue (R=Refinance) 1998 Debt (R) 0.300 mills 2008 Debt (R) 1.400 mills 2012 Debt (R) 3.700 mills 2013 Debt (R) 1.800 mills 2014 Debt (series I) 0.400 mills 2014 Debt (R) 0.100 mills 2014 Debt (R) 0.200 mills 2015 Debt (R) 0.300 mills Total Debt Millage 8.200 mills

Debt 2016/2017 Debt Fund Revenue: Levy $ 3,649,101 Borrowing Nov., 2016 708,483 Borrowing May, 2017 1,308,676 Total $ 5,666,260 School Loan Revolving Fund balance at 6/30/16 (P&I) $ 5,216,227 Projected date to pay off loan 2037 Mandatory repayment date 2037