1. Trimble County Public Schools
Tentative Budget
Trimble County Public Schools
Ohio Valley Educational Cooperative Financial Services
5/19/2017

2. Tentative Budget
Each local board of education is required to approve a Tentative Budget on or before May 30 each year.
The purpose of this law is to assure that the local board of education has an opportunity to review all proposed revenues and expenses before the upcoming school year begins.
This is the 2nd formal step in developing the annual working budget.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

3. 2017-18 Tentative Budget REVENUE STUDENTS
Some basic revenue considerations and how they are addressed in this Tentative Budget are:
STUDENTS
How many students are expected to enroll and what rate of attendance will occur?
Ohio Valley Educational Cooperative Financial Services
5/19/2017

4. 2017-18 Tentative Budget STUDENTS
Projected enrollment for staffing levels was 1,169 as discussed during the board’s approval of the allocations to school councils in February. This budget is based on 1, final FTE-ADA for
No growth in ADA is projected during the first two (2) school months in compared to the same period in Thus, Trimble County’s SEEK is expected to be calculated using the prior year FTE-ADA.
If final ADA for is less than 1, , SEEK revenue for will be lower than projected.
If final ADA is higher than 1, , SEEK revenue in will be higher.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

5. 2017-18 Tentative Budget ASSESSED VALUE OF TAXABLE PROPERTY
As noted during the January Draft Budget review the estimated assessed value for is $626,703,182.
The certified total assessment was $604,719,716.
The projected assessed value is about 3.64% higher than the certified total assessment.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

6. 2017-18 Tentative Budget ASSESSED VALUE OF TAXABLE PROPERTY
The estimated assessment includes a 4.28% increase in real estate (including approximately 1.94% in new growth).
Tangible property is projected to decrease by 0.64%.
Public Service Company (PSC) real estate assessment is projected to increase by 3.97%.
PSC tangible property is projected to increase by 1.59%.
Motor vehicles at wholesale book value are projected to increase by 2.70%.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

7. 2017-18 Tentative Budget TAX LEVY
The Tentative Budget is based on a projected combined property tax rate of 66.9 cents per $100 of assessed value for real estate and 66.9 cents per $100 of assessed value for tangible property.
The projected rates are the same as the rates levied the prior year but could be higher if growth in existing assessment is less than 4%.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

8. 2017-18 Tentative Budget TAX LEVY
Under certain conditions Kentucky law allows a local school district to levy a rate that will generate 4% increase in local tax revenue.
There is a good chance the 4% increase rate is likely to be higher than the previous year due to the overall projected assessment for being less than 4% higher than the certified assessment.
The projected motor vehicle rate per $100 assessed value is cents and the 3% utility tax levy was also projected for continuation.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

9. Summary of Projected Revenues - 2017-18 Tentative Budget
Table A
Summary of Projected Revenues Tentative Budget
Fund
Actual
Budget
Tentative $
Change %
General Fund (*)
$11,766,932
$10,471,057
$9,888,706
($582,351)
-5.6%
Special Revenue Fund (#)
$1,880,722
$1,093,014
$1,189,519
$96,505
8.8%
Capital Outlay Fund
$122,623
$116,684
$113,237
($3,447)
-3.0%
Building Fund
$465,652
$456,432
$442,935
($13,497)
Food Service Fund
$975,375
$770,411
$802,161
$31,750
4.1%
Total
$15,211,304
$12,907,598
$12,436,558
($471,040)
-3.6%
*All columns exclude state payments on-behalf of the school district.
#“Projected” Special Revenue Fund will be adjusted as Grants are verified by KDE
Ohio Valley Educational Cooperative Financial Services
5/19/2017

10. Tentative Budget
Due to uncertainty about Special Revenue funding, the district is not required to account for Special Revenue funds in the Draft Budget presented to the Board in January.
The Tentative Budget includes $1,189,519 as an estimate of these federal, state and local funds.
The Special Revenue fund will be adjusted (up or down) as grants are verified by the Kentucky Department of Education (KDE).
Ohio Valley Educational Cooperative Financial Services
5/19/2017

11. Tentative Budget
Table B on the next slide presents an overview of recommended changes in projected revenue in all funds (except Special Revenue) since the January review of projected receipts and expenses. Projected revenue in the Draft Budget was $11,214,589. The Tentative Budget projection is up by $32,450 across all funds.
The 2016 General Assembly set the SEEK base at $3,981 per ADA; the same as The SEEK base used in the January Draft Budget projection was the same.
Projected Special Revenue funding is excluded from Table B in order to compare revenues from the Draft and Tentative Budgets. Reporting of this fund is not required in the Draft Budget. More definitive funding information should be available by the time the Board considers the Working Budget in September.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

12. Comparison - Projected Revenues - 2017-18 Draft & Tentative Budget
Table B
Comparison - Projected Revenues Draft & Tentative Budget
Fund
Draft
Tentative $
Change %
General Fund (*)
$9,888,706 $0
0.0%
Special Revenue Fund
Capital Outlay Fund
$113,237
Building Fund
$442,935
Food Service Fund
$769,711
$802,161
$32,450
4.2%
Total
$11,214,589
$11,247,039
0.3%
*All columns exclude state payments on-behalf of the school district.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

13. Comparison - Projected Revenue - 2017-18 Draft & Tentative Budget
Table C presents a more detailed overview of recommended changes in projected revenue in the General Fund since the January review of projected receipts and expenses.
Projected General Fund revenue in the Draft Budget was $9,888,706. The Tentative Budget projection is unchanged.
Table C
Comparison - Projected Revenue Draft & Tentative Budget
General Fund
Revenue Source
Draft
Tentative $
Change %
Beginning Unrestricted Balance
$1,268,050 $0
0.0%
Local GF Revenue
$4,299,137
State GF Revenue (*)
$4,264,019
Federal GF Revenue
$55,000
Other Receipts
$2,500
Total General Fund
$9,888,706
*All columns exclude state payments on-behalf of the school district.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

14. Tentative Budget
BEGINNING BALANCE
How many dollars will be in the projected unassigned beginning balance?
The Tentative Budget’s estimated unassigned beginning balance of $1,268,050 (see Table C on the previous slide) is based on a careful review of expected revenues and planned expenses for the remainder of
The unassigned beginning balance in the Tentative Budget is unchanged from the January Draft Budget estimate.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

15. 2017-18 Tentative Budget EXPENSES DEBT SERVICE
Table D on the next slide shows the district’s required debt service payments and projected capital (restricted) revenues.
Total scheduled debt service is $552,663. This obligation is budgeted for payment from the Capital Outlay and Building funds.
Projected recurring revenue from the Capital Outlay and Building funds is $556,172.
The district has sufficient projected capital (restricted) funds to pay the scheduled debt service ($552,663) from these funds with an uncommitted remaining balance of $3,509.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

16. Projected Bonded Debt Payment - 2017-18
Tentative Budget
Table D
Projected Bonded Debt Payment
Total
Debt Service
Building
Fund
Capital Outlay
Principal
$433,876 $0
Interest
$118,787
$9,059
$109,728
Total (Restricted Funds)
$552,663
$442,935
Projected Recurring Revenue
$556,172
$113,237
Uncommitted
$3,509
Ohio Valley Educational Cooperative Financial Services
5/19/2017

17. 2017-18 Tentative Budget OTHER OBLIGATIONS
Does the proposed budget provide for all known obligations for the fiscal budget year, such as salary improvements for additional experience or fringe benefits costs such as accumulated sick leave at retirement?
The cost of advancing all personnel in all funds for an additional year of experience was included in the Draft Budget.
The Tentative Budget includes all certified and classified positions allocated to school councils approved in February.
The Tentative Budget includes an amount in the general fund budget for accrued sick leave with a similar amount in a restricted reserve. Thus, 100% of the potential obligation for this benefit is budgeted.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

18. 2017-18 Tentative Budget ALLOCATIONS TO SCHOOL COUNCILS
Has the board allocated sufficient funds to school councils to meet the staffing and other requirements of 702 KAR 3:245?
The allocation approved by the board in February exceeds the minimum requirements for Sections 4 and 5 of the state regulation on allocations to councils.
The Section 6 allocation meets the $100 minimum set by the 2016 General Assembly in the state's biennial budget.
The salary schedule improvements enacted by the board are automatically incorporated into the allocation to school councils.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

19. 2017-18 Tentative Budget ALLOCATIONS TO SCHOOL COUNCILS (continued)
The Tentative Budget includes funding through Section 7 of the SBDM state regulation.
The next adjustment to council allocations will be in September (if more or fewer students enroll). At the end of the second school month the Section 6 and 7 allocations will be adjusted (up or down) based on the first two (2) months actual FTE-ADA per the district's Growth Factor Report. 
The Tentative Budget includes line item changes based on budgets received from school councils.
Each school’s allocation is budgeted based on its submitted budget. As funds are actually expended, the expense is posted to the appropriate object code.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

20. 2017-18 Tentative Budget SALARY SCHEDULE IMPROVEMENTS
No salary schedule improvements for are included in the Tentative Budget.
This budget reflects 0% salary schedule improvements for certified and classified staff.
It is important to note that approximately 82% of the General Fund is dedicated to personnel expense.
A summary of personnel and benefits as a portion of the General Fund, excluding accumulated sick leave, for the last three (3) years is in Table E on the next slide.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

21. Summary of Projected Personnel Expense - 2017-18 Tentative Budget
Table E
Summary of Projected Personnel Expense Tentative Budget
Actual
Budget
Tentative $
Change %
Salaries GF Personnel
$6,775,305
$6,657,081
$6,389,733
($267,348)
-4.0%
Percent General Fund
67.91%
72.27%
72.97%
Benefits excl. accum. sk. Lv. (*)
$717,515
$817,838
$787,038
($30,800)
-3.8%
7.19%
8.88%
8.99%
Total Salaries & Benefits
$7,492,820
$7,474,919
$7,176,771
($298,148)
75.10%
81.15%
81.95%
*All columns exclude state payments on-behalf of the school district.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

22. 2017-18 Tentative Budget SUMMARY OF PROJECTED EXPENSES
Table F (see next slide) provides an overview of all proposed general fund expenses and changes made since the January review of projected expenses.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

23. Summary of Projected GF Expense - 2017-18 Tentative Budget
Table F
Summary of Projected GF Expense Tentative Budget
Object
Description
Actual
Budget
Tentative $ %
Change
0100
SALARIES PERSONNEL SERVICES
$6,775,305
$6,657,081
$6,389,733
($267,348)
-4.0%
Percent of General Fund Expense
67.9%
72.3%
73.0%
0200
EMPLOYEE BENEFITS (*)
$717,515
$817,838
$787,038
($30,800)
-3.8%
7.2%
8.9%
9.0%
0300
PURCHASED PROF & TECH SERVICES
$464,127
$379,570
$378,495
($1,075)
-0.3%
4.7%
4.1%
4.3%
0400
PURCHASED PROPERTY SERVICES
$337,801
$199,300
$182,568
($16,732)
-8.4%
3.4%
2.2%
2.1%
0500
OTHER PURCHASED SERVICES
$270,258
$252,274
$240,011
($12,263)
-4.9%
2.7%
0600
SUPPLIES
$633,445
$661,369
$635,701
($25,668)
-3.9%
6.3%
7.3%
0700
PROPERTY
$103,342
$201,600
$107,000
($94,600)
-46.9%
1.0%
1.2%
0800
DEBT SERVICE AND MISCELLANEOUS
$54,234
$12,849
$18,024
$5,175
40.3%
0.5%
0.1%
0.2%
0900
OTHER ITEMS
$620,697
$29,405
$18,645
($10,760)
-36.6%
6.2%
0.3%
General Fund Estimated Expense
$9,976,724
$9,211,286
$8,757,215
($454,071)
0840
CONTINGENCY** $0
$1,259,771
$1,131,491
($128,280)
-10.2%
0.0%
13.7%
12.9%
General Fund Total (Est Expense + Contingency)
$10,471,057
$9,888,706
($582,351)
-5.6%
*All columns exclude state revenue/ payments on-behalf of the school district.
**The Contingency is not an estimated expense. It is the budget's reserve. The "Percent of General Fund Expense" represents the Contingency's percentage of the budget's estimated expense.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

24. 2017-18 Tentative Budget EXPENSES
Proposed expenses are detailed in the Tentative Budget attached to the information in the material received by the Board for this meeting.
The totals for each fund are equal to the projected revenue plus the fund balance for each fund.
Table G (see next slide) provides an overview of all proposed General Fund expenses and changes made since the January review of projected expenses.
Projected certified and classified salary improvements are included in Table G.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

25. Comparison - Projected GF Expense - 2017-18 Draft & Tentative Budget
Table G
Comparison - Projected GF Expense Draft & Tentative Budget
General Fund .
Object
Description
Draft
Tentative $ %
Change
0100
SALARIES PERSONNEL SERVICES
$6,730,029
$6,389,733
($340,296)
-5.1%
Percent of General Fund Expense
72.77%
72.97%
0200
EMPLOYEE BENEFITS (*)
$826,796
$787,038
($39,758)
-4.8%
8.94%
8.99%
0300
PURCHASED PROF & TECH SERVICES
$371,220
$378,495
$7,275
2.0%
4.01%
4.32%
0400
PURCHASED PROPERTY SERVICES
$202,318
$182,568
($19,750)
-9.8%
2.19%
2.08%
0500
OTHER PURCHASED SERVICES
$252,274
$240,011
($12,263)
-4.9%
2.73%
2.74%
0600
SUPPLIES
$650,601
$635,701
($14,900)
-2.3%
7.03%
7.26%
0700
PROPERTY
$202,250
$107,000
($95,250)
-47.1%
1.22%
0800
DEBT SERVICE AND MISCELLANEOUS
$13,149
$18,024
$4,875
37.1%
0.14%
0.21%
0900
OTHER ITEMS $0
$18,645
100.0%
0.00%
General Fund Estimated Expense
$9,248,637
$8,757,215
($491,422)
-5.3%
0840
CONTINGENCY**
$639,969
$1,131,491
$491,522
76.8%
6.92%
12.92%
General Fund Total (Est Expense + Contingency)
$9,888,706
0.0%
*All columns exclude state revenue/ payments on-behalf of the school district.
**The Contingency is not an estimated expense. It is the budget's reserve. The "Percent of General Fund Expense" represents the Contingency's percentage of the budget's estimated expense.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

26. 2017-18 Tentative Budget BUDGET RESERVE
Does the proposed budget include a sufficient reserve?
A fundamental basis of budgeting is not to spend more than you receive. There are some years when the carry forward balance is above 5% that a local school board may decide to spend more than they receive, excluding the carry forward balance.
KDE defines “total budget” as the budgeted expenditures in the General and Food Service funds excluding the Contingency. The budgeted reserve (Contingency) in the Tentative Budget has been determined accordingly.
The board must include a minimum reserve (Contingency) of at least 2% of the total budget ($249,736). This budget includes an unrestricted General Fund reserve (Contingency) of $1,131,491 (8.0% of the total budget).
Ohio Valley Educational Cooperative Financial Services
5/19/2017

27. 2017-18 Tentative Budget BUDGET RESERVE
It is important to remember that an adequate unrestricted reserve (Contingency) provides a “buffer” to minimize the disruption of instructional programs deemed critical by the Board during times of negative shifts in revenue.
Since the potential for a reduction in state SEEK funding exists, any reduction in state SEEK would negatively impact the unrestricted General Fund reserve (Contingency).
The district had a reserve (Contingency) of $1,259,771 at the beginning of
The Tentative Budget includes an estimated General Fund carry forward balance of $1,268,050. The actual carry forward will not be confirmed until the Annual Financial Report is filed in late July. It is possible, however, that final expenses could be higher than revenue. This development would have a negative impact on the projected unassigned beginning balance.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

28. 2017-18 Tentative Budget BUDGET RESERVE
The “Expense as Percent of Revenue” in this budget is 101.6%. What does this mean?
It means estimated expense exceeds projected recurring revenue by $136,559.
It is not a structurally balanced budget.
This budget contains a sufficient reserve for
Table H presents the district’s most recent five (5) year “Expense as Percent of Revenue” historical trend.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

29. Expense as Percent of Revenue – 2017-18 Tentative Budget
Table H
Expense as Percent of Revenue – Tentative Budget 
Tentative
Projected GF Revenues less Beginning Balance (*)
$8,555,160
$8,586,967
$8,625,422
$8,619,532
$8,620,656
Projected GF Expenses less Contingency (*)
$9,185,918
$9,599,800
$9,285,374
$9,095,884
$8,757,215
+/- Difference
($630,758)
($1,012,833)
($659,952)
($476,352)
($136,559)
Expense as Percent of Revenue
107.4%
111.8%
107.7%
105.5%
101.6%
*All columns exclude state payments on-behalf of the school district.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

30. Tentative Budget
Table I presents a comparison of the “Expense as Percent of Revenue” at the Draft and Tentative stages of developing the FY Working Budget.
Projected recurring General Fund revenue did not increase, but estimated General Fund expenses decreased by $491,422.
Table I
Comparison - Expense as Percent of Revenue –
Draft & Tentative Budget
Draft
Tentative $
Change
Projected GF Revenues less Beginning Balance (*)
$8,620,656 $0
Projected GF Expenses less Contingency (*)
$9,248,637
$8,757,215
($491,422)
+/- Difference
($627,981)
($136,559)
$491,422
Expense as Percent of Revenue
107.3%
101.6%
*All columns exclude state revenue/ payments on-behalf of the school district.
Ohio Valley Educational Cooperative Financial Services
5/19/2017

31. 2017-18 Tentative Budget RECOMMENDATION
Approve the Tentative Budget as described in this enclosure.
Ohio Valley Educational Cooperative Financial Services
5/19/2017