1. Hewlett -Woodmere Board of Education Budget Work Session 2017-18 Budget Development
November 9, 2016

2. Agenda Employee Benefits: (9010 and 9020 series)
Teachers’ and Employees’ Retirement System overview
Initial budgetary projections
Debt Service (9700 series)
Debt Service Schedules for
Inter-Fund Transfers for
Transportation (5000 series)
Emerging trends
Projection of expenses
Capital Projects Planning
Potential sources and uses of funds
Listing of Projects from our 5 year facilities plan
Possible capital projects for voter approval in May 2017
Timeline
Setting Priorities
Board and Community Questions and Discussion

3. Teachers’ and Employees’ Retirement Systems Expenditures
Budget Development
Teachers’ and Employees’ Retirement Systems Expenditures

4. Retirement Contributions TRS
Teachers’ Retirement System (TRS)
Expansion of tiers of service
Impact of new employee contributions over time
We have about 435 employees in TRS the vast majority are in Tier 4 (3% employee contribution for 10 years) and a growing number in Tiers 5 and 6
In Tier 5 employees contribute 3% of salary toward retirement
In Tier 6 employees contribute between 3% to 6% depending upon salary level.
Employee contributions over time should help to stabilize and control the growth of employer contribution rates.

5. TRS Expense
TRS expense is accrued in the year in which staff members work, but paid in the following year
July 1 through June 30 Fiscal Year
$6,586,665
$6,045,205
$5,757,705 (estimate)
$5,000,000 (preliminary estimate)
Contribution rates estimated to drop from 11.72% to Between 9.5% and 10.5%. These rates will apply to fiscal year NYSTRS member salaries and will be collected by TRS in the Fall of Reduced expense in TRS may help offset other areas of expected increases like health insurance and transportation. There will be no TRS exclusion with respect to the Tax Cap Calculation.

6. Retirement Contributions ERS
Employees' Retirement System (ERS)
Expansion of tiers of service
Impact of new employee contributions over time
We have about 223 employees in ERS the vast majority are in Tier 4 and a growing number in Tiers 5 and 6
In Tiers 4 and 5 employees contribute 3% of salary toward retirement
In Tier 6 employees contribute between 3% to 6% depending upon salary level.
Over time as Employees in Tiers 3 and 4 retire we should see a decrease in ERS pension costs overall.

7. Employees’ Retirement System (ERS) Expenses (
Employees’ Retirement System (ERS) Expenses (*based on ERS Estimated bills 2016 & 2017)
Year of Payment
Fiscal Year
Budgeted
Actual
Fall 2014
$2,525,750
$1,874,591
Fall 2015
$2,230,950
$1,790,180
Fall 2016
$1,857,000
$1,696,153*
Fall 2017
$1,750,000 *
TBD

8. 2016

9. 2016

10. 2017

11. 2017

12. ERS vs TRS: Long Term
Both programs project just under 8% annualized investment returns.
ERS is more aggressive in adjusting rates if prior year returns do not meet the target
TRS uses a 5 year smoothing approach which can lead to a gap between rate charged and rate necessary to achieve full funding. Sometimes this causes spikes in the employer contribution rates over time

13. Debt Service and other Inter-fund Transfers
Budget Development
Debt Service and other Inter-fund Transfers

14. Debt Service (9700 series)
The District is obligated to make payments on long term debt:
Hewlett High School Bond Issue
Refinanced at lower rates in 2011
Last payment: June, 2021
Woodmere Middle School Bond Issue
Issued in 2009
Last payment: November, 2024
Shared Energy Savings Project (ESCO)
Refinanced at lower rates in 2015
Last payment: April, 2024

15. Debt Service Payments Excluding Library Bond-Paid in Full July 2014
Debt Service Payments Excluding Library Bond-Paid in Full July 2014 * BOE may consider using available reserves to pay off ESCO outstanding debt
Project
Hewlett HS
Principal
$1,325,000
$1,355,000
$1,420,000
Interest
$ ,500
$ 375,000
$ 307,250
Total
$1,726,500
$1,730,000
$1,727,250
Woodmere MS
$1,475,000
$1,530,000
$1,595,000
$ 604,938
$ 559,863
$ 512,988
$2,079,938
$2,089,863
$2,107,988
ESCO
$359,474
$366,445
$ 373,566
$ 65,784
$ 58,813
$ 51,706
$ 425,258
$425,258
$425,258*
Budget/Grand Total
$4,231,696
$4,245,121
$4,260,496

16. Inter-Fund Transfer Summer Special Education Budget code (9701)
Summer Special Education; must budget 20% of total Summer Special education program costs 80% of the total cost is paid by SED
We currently Budget $165,000 and it appears to be adequately funded (otherwise the external auditors would recommend an increase).
Recommendation for continue funding at $165,000.

17. Other 9000 function series budget recommendations for 2017-18 subject to revision @ 11/09/16
Code Description
Funding
Proposed funding
Comments
TAN Interest
$150,000
Anticipates possible short term cash flow borrowing
Transfer to School lunch
$14,000
Very small amount of general fund support especially compared to other districts
Transfer Summer Special Education
$165,000
Maintains adequate funding level
Transfer to Capital
$2,000,000
Already sustained a major reduction for

18. Transportation Expenditures
Budget Development
Transportation Expenditures

19. Transportation (5000 Budget function series)
The only series where additional funds cannot be transferred in during the year
Voters set general transportation limits
Distance limits for special education are set by the state
Parents have up to April 1st to submit requests for transportation to private schools for the following year
Rates for renewal of contracts are not set until after the budget vote and are based upon CPI figures released mid -June

20. Transportation (5000 series) continued
Emerging Trends with Budgetary Implications:
Increase in nonpublic school students being transported (from 923 in to 1,181 in : An increase of 258 students in that time period).
Growth in parent placements in schools in New York City and Brooklyn
Requests for transportation beyond the15 mile limit.
Expansion of the scope of Special Education transportation needs.
Decline in the number of contractors willing to bid our routes.
Evolving expectations for service.

21. Oh, the Places you’ll go! (from the book of the same name…Dr.Seuss)
HEWLETT-WOODMERE PUBLIC SCHOOLS: TRANSPORTATION
SCHOOLS SERVICED
Bais Yaakov Ateres Academy
Kew Gardens
Bais Yaakov Ateres Miriam
Far Rockaway
Beth Rivka
Brooklyn
Bnos Bais Yaakov
Bnos Malka Academy
Forest Hills
Bobov Yeshiva
BOCES CCA
Wantagh
BOCES Rosemary Kennedy
Boces Seamans Neck
Seaford
Brandies School
Lawrence
Brooklyn Free School
Brookville Center for Childrens svc (AHRC)
Brookville
Center for Developmental Disabilities
Woodbury
Chedar at the Ohel
Valley Stream
Chedar Girls Division
Lynbrook
Crescent School
Hempstead
Fusion Academy
Genesis Outreach
East Meadow
Gerald Clapps
Levittown
HAFTR Elementary School
HAFTR High School
Cedarhurst
HAFTR Middle School

22. Oh, the Places you’ll go. (from the book of the same name…Dr
Oh, the Places you’ll go! (from the book of the same name…Dr.Seuss) Continued
Hagedorn Little Village
Seaford
HALB
Long Beach
HALB - DRS Yeshiva HS for Boys
Woodmere
HALB - Lev Chana Early Childhood Center
Hewlett
HANC Elementary School
West Hempstead
HANC High School
Uniondale
Harmony Heights
East Norwich
IVDU Elementary
Lawrence
Kellenberg Memorial High School
Kulanu Torah Academy HS
Cedarhurst
Lawrence High School
Lawrence Woodmere Academy
Mesivta Ateres Yaakov of LI
Mesivta Chaim Shlomo
Far Rockaway
North Shore Hebrew Academy High School
Great Neck
Rambam Mesivta
Robert Louis Stevenson
Manhattan
Sacred Heart Academy
Hempstead
School for Language and Communication Development
Richmond Hill
Shalhevet High School
Valley Stream
Shefa School
Shevach High School for Girls
Flushing
Shulamith School for Girls - Early Childhood Center

23. Oh, the Places you’ll go. (from the book of the same name…Dr
Oh, the Places you’ll go! (from the book of the same name…Dr.Seuss) Continued
Shulamith School for Girls - Lower Division
Lawrence
Shulamith School for Girls - Middle Division
Siach Yitzchok
Far Rockaway
Solomon Schechter Middle School / High School
Williston Park
St Agnes Cathedral School
Rockville Centre
St Mary's High School
Manhasset
St Raymond School
East Rockaway
Stella K. Abraham High School for Girls
Hewlett
Summit School (Lower)
Flushing
Summit School (Upper)
Jamaica Estates
The Children's Learning Ctr UCP
Roosevelt
The Seal Program of Great Neck
Great Neck
Tichon Meir Moshe
Torah Academy for Girls - Elem
Torah Academy for Girls High Schools
United Nations Int. Sch.
Vincent Smith School
Port Washington
Waldorf School
Garden City
Yeshiva Central Queens
Yeshiva Darchei Torah
Yeshiva Far Rockaway
Yeshiva Har Torah
Little Neck
Yeshiva Ketana of LI
Inwood
Yeshiva Ketana of LI - Kindergarten
Valley Stream
Yeshiva of South Shore
Yeshiva of South Shore - Hollander Early Childhood Center
Yeshiva Shaarei Chaim
Yeshiva University
New York
Yeshiva University High School for Girls
Holliswood
Yeshivath Gesher

24. Transportation (5000 series) trends, continued
The two most expensive bus routes go to Manhattan and Brooklyn and have crossed the $45,000 level for the start of the year
$58,610
$47,990
The most recent bid for a van with attendant just opened at $7,585 per month for a single pupil – private placement
There has been an increase in the number of routes requiring additional supervision

25. Projected @ 11/09/16 and updated regularly
Transportation Expense History *Estimated amount for budget as of 11/09/16
Budgeted
$5,348,189
$5,314,169
$5,480,267
$5,623,254
$6,162,954*
Actual
$4,662,354
$4,855,291
$4,945,270
$5,365,102
TBD
Balance:
Budget vs Actual
$685,835
$458,878
$534,997
$258,152
Budget % Change
.4%
-0.6%
3.1%
2.6%
9.6% Est.
Expenditure %
Change
.9%
0.3%
6.5%
8.5%
CPI % for Contract Extensions
1.4%
1.9%
0.9%
TBD June 2017
11/09/16 and updated regularly

26. Capital Planning and Expenditures
Budget Development
Capital Planning and Expenditures

27. Capital Expenditures Choosing among priorities
Planning Tools and Resources
Five Year Facilities Plan (to be adopted by Board in November and forwarded to state in December???)
Board Facilities Tour: Began October 19, 2016 and on going
Identification of high priority projects
Updates on construction cost trends
Input from:
BOE/Community
Administration
Staff and
Students

28. Funding Capital Expenditures
5 year Capital Plan draft includes almost $100,000,000 for projects ranging from repairs to improvements
Sources of Funds
Annual budgetary transfer to Capital Fund
Currently $2,000,000
Repair Reserve Funds
Board hearing for release
Capital Reserve Funds and Transfer of Reserves
Voter approval for release
Bond Issue (Always an option but not recommended)
A major undertaking
Public hearing and voter approval required
Requires budget support for debt, typically 20 year issue

29. 2017-2018 Budget Development Capital Projects planning Possible Scenario
Ask for voter approval on May 16, 2017 for a proposition to establish a new capital reserve for that aligns with our new Reserve Management Plan and which would involve the transfer from some existing reserve accounts to this new capital reserve account

30. Bleachers/Lighting at Woodmere Middle School
Budget Development Possible Capital Projects for Consideration (not prioritized) Funded from Reserves and at no additional cost to taxpayers and without having to borrow
Hewlett High school HVAC Upgrades, weight room renovation, auditorium renovation, tennis court resurfacing
District wide window replacements, roofs, masonry, floor tile, paving, PA systems, bathrooms
Bleachers/Lighting at Woodmere Middle School
Playground replacements and resurfacing at all elementary schools
Adding additional synthetic turf fields(OES/WMS)
WEC locker room and shower
Technology/infrastructure upgrades

31. Sources of Funds for Capital Projects
Transfer to Capital Fund
16-17 funding was approved at $2,000,000 - Recommend keeping it the same for (Budget neutral)
Repair Reserve
Current funding level: $852,371 (950,000 transferred for HVAC)
Existing Capital Reserves
Long Range Building Improvement Fund #3
Current funding level: $420,029 ($2.8M transferred out HVAC)
Long Range Building Improvement Fund #4
Current funding level: $3,000,000 ($4.0M transferred out HVAC)
Implement Reserve Management Plan
Transfer from closed reserve accounts and overfunded reserve accounts to fund a new Long Range Building Improvement Plan #5

32. Capital Expenditures further considerations
Recommendations for repairs/renovations to be included in Transfer to Capital Fund
Why windows matter
When is it appropriate for projects to be funded through budget appropriations in the Maintenance budget codes
Updates From Board of Education Building Inspections

33. The End - Thank you!
Questions
Comments
Additions
Deletions
Etc.