FY Budget Development Thursday, October 20, 2011 Budget Committee Meeting

Agenda Welcome Budget Calendar & Process Teaming Exercise - Goals Prior Year Budget Development Parameters Budget Modeling Closing Remarks

Key Dates: ◦Meeting Dates: 11/17, 12/15, 1/19, 2/16, and 3/1 if needed ◦Community-Wide Focus Group: 2/6 at Mexico Elementary School ◦Board of Education Adopts Budget: 4/11 ◦Budget Hearing: 5/8 ◦Budget VOTE: 5/15/2012

Teaming Exercise Breakout into Teams You have 20 minutes What are your top 6 Priorities? Please be prepared to share with everyone!

Prior Year Budget Development Provide a Stable Tax Increase over the next five (5) years Maintain a Tax Levy under 3% Maintain Educational Programs for Students – Keep Cuts away from Kids! Maintain our Fine Arts and Sports Programs

BUDGET MODELING Historical Data Sensitivity Analysis Property Tax Cap Overview

Budget Year Total Appropriations % Change Tax Levy% Change Revenue% Increase $39,079, %$10,420, %$28,659, % $40,290, %$10,625, %$29,664, % $40,150, %$10,383, %$29,766, % $40,311, %$10,683, %$29,627, % $43,500, %$21,454, %$22,045, % $44,370, %$22,076, %$22,293, % $45,257, %$22,717, %$22,540, % $46,162, %$23,375, %$22,786, % $47,085, %$24,053, %$23,031, % $48,027, %$24,751, %$23,276, %

Sensitivity Analysis % budget inc $ inc levy 0.00%Total Appropriations43,500, % Estimated Revenues22,045,283 Balance/Levy21,454, % 1.00%Total Appropriations43,500,00043,935, % Estimated Revenues22,045,283 Balance/Levy21,454,71721,889, %435, %Total Appropriations43,500,00044,370, % Estimated Revenues22,045,283 Balance/Levy21,454,71722,324, %435, %Total Appropriations43,500,00044,805, % Estimated Revenues22,045,283 Balance/Levy21,454,71722,759, %435,000

Property Tax Cap Total Levy to Support Proposed Budget Tax Levy Limit + Coming School Year Exemptions = Maximum Allowable Tax Levy

Tax Levy Limit Prior Year Tax Levy X Tax Base Growth Factor + PILOTs (Prior Year) - Prior Year Exemptions (Not ERS & TRS) = Adjusted Prior Year Tax Levy X Allowable Levy Growth Factor (lesser of 2% or CPI) - PILOTs (receivable in coming year) + Allowable Carryover = TAX LEVY LIMIT

Coming School Year Exemptions Pension Costs: Increase in Employer Contribution Rates by More Than 2% over Prior Year Exemption = % over 2% X Salary Base = Exempt Amount (i.e. 2.6% increase,.6% excludable portion).006 X $20,000,000 = $120,000 (Exempt Amount) You would perform this calculation for both TRS and ERS

Property Tax Cap Summary Taxpayers are still voting on the spending plan (appropriations) Taxpayers will vote on the TAX LEVY LIMIT prior to EXEMPTIONS Property Tax Cap is in effect through the Fiscal Year