1. BUDGET HEARING II Presented to the Board of Education MAY 10, 2016

2. * Maintains all current programs. * Projected enrollment of: 3384 * Reallocates faculty for Middle School enrollment increases. * Adds faculty for High School enrollment increases. * --.4 FTE Math teacher * --.2 FTE ASL teacher * Continues Literacy Initiative: Reading and Writing. * Commits to STEM Initiative: 1.0 FTE PLTW teacher.

3. Prior Year Tax Levy x Assessment Growth FactorAs set by the state = 1.0122 + Current PILOTs -Exemptions x Lower of CPI or 2%As set by the state =.12 - Next Year’s PILOTs + Carryover + Exemptions = Allowable Tax Levy for Next YearEstimated Rate = 1.00% **Often times cost saving opportunities such as reductions in debt service or increases in building aid negatively impacts the exemption calculation, having an adverse effect on the allowable tax levy. **

4. Under the law, the level of voter approval needed to pass a budget depends upon the amount of the tax levy required by the proposed budget: * If the tax levy is at or below the allowable tax levy limit set by the tax cap, a simple majority (50 percent plus one) is needed for budget approval. * If the tax levy exceeds the district’s allowable tax levy limit, the support of a supermajority (60 percent or more) of voters is required for budget approval. Annual funding of a rye education should be determined at the local level regardless of the law, but dependent on how the community defines success.

5. * Employer Retirement Contributions * TEACHERS’ RETIREMENT SYSTEM (TRS) * Projected contribution rate for 2016/17 is 11.72% * 2016/17 projected expenditure: $4,600,000, more than doubled since 2009/10 * 85% of all staff participates in TRS * EMPLOYEES’ RETIREMENT SYSTEM (ERS) * Projected blended contribution rate for 2016/17 is 15.5% * 2016/17 projected expenditure: $1,100,000 * Current staff population resides in the highest rated Tiers 3&4 of the six tiers Estimated pension costs for 2016/17 represent 6.81% of the total budget. * Employee/Retiree Health Care Benefit Costs * Anticipated rate INCREASE of 3.14%

6. Approved 2015/16Proposed 2016/17Change In $'s % of Budget 1. Salaries 43,445,272 45,506,610 2,061,33853.50% 2. Benefits 20,285,700 19,960,700 (325,000)23.47% Total 1-2 63,730,972 65,467,310 1,736,33876.96% 3. General Education- Includes: Classroom Support, Library, Video Production, Guidance, Health Services, Co-Curricular, BOCES Services, Youth Programming & Services 2,080,012 2,157,172 77,1602.54% 4. Special Education- Includes BOCES Services 4,042,185 4,284,414 242,2295.04% Total 3-4 6,122,197 6,441,586 319,3897.57% 5. Athletics 334,250 398,550 64,3000.47% 6. Technology 1,332,000 1,481,400 149,4001.74% 7. Curriculum Development 385,600 365,600 (20,000)0.43% 8. Transportation- Related To: Athletics & Special Education 1,478,195 1,475,500 (2,695)1.73% Total 5-8 3,530,045 3,721,050 191,0054.37% 9. District Wide Support- Includes: Board, Voting/District Clerk, Superintendent Support, Fiscal, Legal, Human Resources, Public Information, Security, Student Information System, Liability Insurance, Sewer Assessment, BOCES Administrative Services 1,877,768 1,945,711 67,9432.29% 10. Facilities 2,544,500 2,572,500 28,0003.02% 11. Debt Service 4,214,121 4,046,716 (167,405)4.76% 12. Interfund Transfers- Capital, Lunch, Special Aid 865,000 870,000 5,0001.02% Total 9-12 9,501,389 9,434,927 (66,462)11.09% TOTAL BUDGET 82,884,603 85,064,873 2,180,270100.00% % Change Budget To Budget 2.63%

7. 2015-16 2016-17 TOTAL SPENDING BUDGET 82,884,603 85,064,873 Change in $ 2,180,270 % Change Budget to Budget 2.63% PROPOSED BUDGET 82,884,603 85,064,873 TOTAL NON-TAX REVENUE 6,804,686 7,204,085 USE OF FUND BALANCE 1,300,000 2,330,000 PROPERTY TAXES/STAR 74,779,916 75,530,788 TOTAL REVENUE BUDGET 82,884,603 85,064,873 TAX LEVY CHANGE1.00% REMAINING FUND BALANCE10,280,4457,950,445

8. * Non-Tax Revenue $7.20M * $400K increase from 2015/16 * State aid increase of: $157K, (including GEA elimination: $116K) * Plus use of Reserves of $2.33M * $1M increase from 2015/16 * Allowable Tax Revenue $75.53M * $750K increase from 2015/16 (within Tax Cap)

10. * The Estimated Tax Levy: $75,530,788 amount raised by taxes to support recommended budget. * Tax Levy Increase: 1.00% * Actual Taxable Assessments were $126,558,663 for 7/1/15. The resulting actual tax rate per thousand of assessment was $595.57. * Estimated Taxable Assessments for 7/1/16 are currently $126,937,740 (will continue to be updated). The resulting actual tax rate per thousand of assessment is $595.02. * Estimated annual increase of: $73.15, on the average Rye property assessment of : $29,150 * Individual assessments that have not increased from the previous year, will result in an overall tax bill decrease.

11. * A second proposition question will be on the May 17th ballot related to the Osborn Emergency Furnace replacement, allowing the District the ability to borrow funds to support this one time capital expense * OSBORN SCHOOL FURNACE BOND PROPOSITION: * Shall the Rye City School District bond resolution adopted April 5, 2016, authorizing the replacement of the furnace at the Osborn Elementary School, including incidental improvements and expenses in connection therewith, at a maximum estimated cost of $1,800,000; and authorizing the issuance of not exceeding $1,800,000 bonds of said School District to pay the cost thereof, and providing for the levy of a tax in annual installments therefor and in anticipation thereof to issue said obligations, be approved? * Bonding for capital expenses like furnaces and roofs is the most fiscally-prudent way to pay for them. The District can borrow money at a low interest rate and pay it back over time. * Borrowing has little annual impact on taxes because the costs are spread over the term of the issued bond. * District debt service will increase as of the 2017/18 budget (2017 tax bill) as a result of this issuance. * The current 16/17 proposed transfer to capital budget will have to be utilized for this project, delaying other much needed work if the proposition vote is unsuccessful.

12. Tuesday, May 17, 2016 RMS Gym: 7AM – 9PM VOTE: Budget, Bond & Trustees