1. Annual School Board Budget Presentation to the Town Council
Presentation of the FY 2018 School Budget
April 25, 2017
Joint School Board and Town Council Budget Workshop
Jessica L. Sullivan, Town Council Finance Chair

2. Budget Authority
The Town Charter authorizes the Town Council to “adopt an annual budget” The “council shall approve the budget with or without amendments”

3. Budget Authority
The Town Council is legally required to review the school budget
Although the Town Council does not determine how to allocate the school budget, it must review the entire budget.

4. Budget Authority
The budget “ establishes the amount to be raised by property taxes”
In addition to our Town Charter, Maine state law requires the Town Council to approve the school budget amount that goes to the voters for validation. ( Sections 1485 and 2307, Title 20-A)

5. Average Municipal Department Tax Rate Increase
Municipal Data
2.68 %
Average Municipal Department Tax Rate Increase

6. Municipal Data cont.
Cape Elizabeth’s population has remained steady at just over 9000.

7. Municipal Data cont.
Municipal staff regular employee numbers range from and can grow to 201 when including on call firefighters and EMT workers

8. Revenue Sharing 2001-2018 Total Received $11,131,215
From $799,738 to $402,087
Down over 50%
Average $ 654,777/year

9. Average Tax Rate Increase
School Data
3.70 %
Average Tax Rate Increase

10. From a peak school enrollment
School Data cont.
From a peak school enrollment
of 1847 in 2006, enrollment has
declined to 1603 by 2017, a drop
of 244 students.

11. School Data cont.
The School Department projects a drop in enrollment by another 32 students next year

12. School Data cont.
In 2006 with an enrollment of 1847, school staff numbered
For 2018 with a projected enrollment of 1571,
down 276, staff will number

13. General Purpose aid to Education State School Subsidy 2001-2018
Total Received $44,174,060
From High of $3,403,682 in 2016 to Low of $1,793,363 in 2004
Average received is $2,598,474

14. Municipal and School Combined Data 2001-2018
Municipal Budget Average Tax Rate Increase 2.68%
School Budget Average Tax Rate Increase 3.70%
6.38 %
Average Combined Tax Rate (TR) Increase

15. Municipal and School Combined Data 2009-2018
Municipal Budget Average TR Increase 2.05 %
School Budget Average TR Increase %
Combined Average Budget TR Increase 4.9 %

16. Property Tax Projections
At the current rate of increase in municipal and school taxes, assuming no additional bonding( borrowing ), the following property tax increases are projected:

17. Property Tax Increase Projections by 2030 ( 12 years from FY 2018 )
Home Value of $300,000: $2,856
Home Value of $500,000: $4670
Home Value of $1,000,000: $9,520

18. The Property Tax Burden
Can We Sustain The Rate of Property Tax
Growth We Have Experienced ???

19. Current Proposed FY 18 Budgets
Municipal Budget Proposes a 1.4% increase
( $168,402 higher than last year)
School Budget Proposes a 2.4% increase
( $591,469 higher than last year )
Total Proposed Tax Rate Impact 4.1%

20. What If ??? Both Municipal and School Budgets Drop
By One Percent Each ?
This would decrease the Tax Rate Impact from 4.1 % to 3.1 %

21. 1 % Decrease Option
At 1.1%, (instead of 1.4% ) Municipal Budget increases by $132,911 ( instead of $168,000 )
At 1.5 %, ( instead of 2.4% ) School Budget increases by $372,805 ( instead of $591,469)

22. 1% Decrease Option
Results in a Combined Municipal and School budget increase of 2.6 %, Lower Than the 10 Year Average Combined Municipal and School budget increase of 4.9 %, and Lower the Combined 17 year Average of 6.8%