1. 2015-2016 Preliminary Budget February 2, 2015

2. Mission Statement The Mission of the Kennett Consolidated School District is to provide a quality education that increases the achievement of every student in order for all to become successful and thoughtful contributors to society.

3. Expenditures

4. Total Expenses - $79,062,067

5. Expenditures Total Expenses - $79,062,067

6. Budget Development Foundation – Salaries ▪ Collective Bargaining Agreement ▪ Act 93 Agreement ▪ All Other Employees – Act 1 Index to 3% Maximum ▪ New Teaching Positions – High School S.T.E.M. – Special Education - 2 Positions – Middle School Social Studies ▪ Biology Remediation Program ▪ Ready to Learn Summer Tutoring Program ▪ No Retirements ▪ No Furloughs/Outsourcing

7. Budget Development Foundation – Benefits ▪ Medical/Prescription/Dental Insurance – First Look Projections ▪ Pennsylvania School Employees Retirement Contribution Rate – Certified by PSERS ▪ Vision, Life, and Disability Insurance – Trend Analysis ▪ Worker’s Compensation – SDIC Estimate

8. Budget Development Foundation – Allocations ▪ Instructional Buildings – 1.9% Increase ▪ Department Allocations – No Increase ▪ Special Education – CCIU Projection ▪ Student Transportation – Krapf Bus Company Agreement ▪ Annual Consumer Price Index or Minimum 2% ▪ Occupational Education – CCIU Tuition Formula ▪ Paraprofessionals – CCRES Agreement ▪ Act 1 Index ▪ Charter School Tuition – Current Enrollment x (Tuition Rates x Act 1 Index) ▪ Debt Service – No Increase

9. Expenditures DESCRIPTION 2014-2015 BUDGET 2015-2016 PRELIMINARY BUDGET $ INC (DEC) % INC(DEC) Salaries $ 28,886,644 $ 29,725,454 $ 838,8102.90% Employee Benefits 15,832,667 17,298,133 1,465,466 9.26% Purchased Prof. Svcs. 5,893,175 6,418,233 525,058 8.91% Purchased Property Svcs. 1,870,288 1,703,047 (167,241) -8.94% Other Contracted Svcs. 12,585,090 13,083,711 498,621 3.96% Supplies 2,246,872 2,202,820 (44,052) -1.96% Equipment 438,190 449,473 11,283 2.57% Other Objects 2,448,364 2,296,196 (152,168) -6.22% Other Financing Uses 5,695,500 5,885,000 189,500 3.33% TOTAL ALL OBJECTS $ 75,896,790 $ 79,062,067 $ 3,165,2774.17%

10. Expenditure Drivers ▪ Salaries – Existing Salaries ▪ Impact - $676,200 – 2.3% Increase – Three New Teaching Positions ▪ Impact - $162,610 – 0.6% Increase – Includes $10,000 for a Biology Remediation Program ▪ Benefits – Pennsylvania School Employees Retirement System ▪ Impact - $1,351,861 (Net Impact After State Subsidy- $619,375) – Prescription Insurance ▪ Impact - $167,758

11. Benefits DESCRIPTION 2014-2015 BUDGET 2015-2016 PRELIMINARY BUDGET $ INC (DEC) % INC(DEC) Life Insurance $ 25,753 $ 26,479 $ 7262.82% Income Protection 54,651 55,725 1,0741.97% Vision 74,838 88,817 13,97918.68% Social Security 2,221,182 2,253,623 32,4411.46% Retirement 6,213,503 7,565,364 1,351,86121.76% Tuition 320,000 245,000 (75,000)-23.44% Unemployment Comp. 45,781 40,000 (5,781)-12.63% Workers Compensation 162,810 166,648 3,8382.36% Medical 4,726,502 4,709,316 (17,186)-0.36% Dental 483,669 475,425 (8,244)-1.70% Prescription 1,423,978 1,591,736 167,75811.78% Other Benefits 80,000 -0.00% TOTAL ALL BENEFITS $ 15,832,667 $ 17,298,133 $ 1,465,466 9.26%

12. PSERS History/Projections Employer Contribution Rates

13. Act 110 of 2010 PSERS Rate “Collars” ▪ The rate caps limit the amount the pension component of the employer contribution rate can increase over the prior year’s rate as follows: – FY 2011-12 – not more than 3.0% – FY 2012-13 – not more than 3.5% – FY 2013-14 – not more than 4.5% – Thereafter – not more than 4.5% The estimate for 2015-2016 prior to the rate caps being established was 33.49% which would have translated to an additional net budgetary increase of $1.1 million.

14. Expenditure Drivers ▪ Purchased Professional Services – Home and Community Services ▪ Impact – $322,035 ▪ Personal Care Assistants – CCIU Market Place Services/Other ▪ Impact - $141,456 ▪ Special Education Services – Security and Safety Services ▪ Impact - $61,000 ▪ Middle School Security Guard

15. Expenditure Drivers ▪ Purchased Property Services – Electricity Savings ▪ Impact - ($167,700) ▪ Other Contracted Services – Occupational Education Tuition ▪ Impact - $180,666 – CCRES Paraprofessionals ▪ Impact - $208,445 – Affordable Care Act - $100,000- Core Services - $20,456 – Extended School Year - $36,000- Substitutes - $16,620 – High School Study Hall Monitor - $35,050 – Charter School Tuition ▪ Impact - $114,000

16. Charter School Tuition ▪ Fast Facts – Regular Education Tuition Rate - $10,345 – Special Education Tuition Rate - $24,175 – Traditional and Cyber Charter Schools ▪ Tuition Rates are Identical – Current Enrollment ▪ Regular Education – 157 ▪ Special Education – 49 – Avon Grove Charter School – Total 2015-16 Budgeted Expense - $2,750,000

17. Revenues

18. Total Revenues - $79,062,067

19. Revenues Total Revenues - $79,062,067

20. Revenues – State 2014-20152015-16 DESCRIPTIONBUDGETPRELIMINARY$ INC (DEC)% INC (DEC) BASIC ED SUBSIDY $5,135,000 $00.00% SPECIAL ED SUBSIDY 1,641,323 -0.00% TRANSPORTATION SUBSIDY 1,440,000 -0.00% RENTAL & SINKING FUND 362,000 560,408 198,40854.81% HEALTH SERVICES 86,000 -0.00% PROPERTY TAX REDUCTION ALLOCATION 1,379,058 -0.00% PA ACCOUNTABILITY GRANT 128,446 - (128,446)-100.00% READY TO LEARN BLOCK GRANT - 304,781 SOCIAL SECURITY 1,110,591 1,136,616 26,0252.34% RETIREMENT 3,106,752 3,839,237 732,48523.58% TOTAL REVENUE FROM STATE SOURCES $14,389,170$15,522,423$1,133,2537.88%

21. State Subsidy Increases

23. State Revenue Drivers ▪ Rental and Sinking Fund – State’s Share of Debt Service Obligation ▪ Impact - $148,000 – PDE’s Moratorium on Plan Con Projects Removed – Bancroft Elementary School Debt Service Issues are Eligible for Reimbursement – CCIU’s Debt Service for TCHS ▪ Impact - $48,000 ▪ Pass-Through Funding ▪ Ready To Learn Grant – Combined with Accountability Block Grant ▪ Impact - $176,335 ▪ Pennsylvania School Employees Retirement System – State’s Obligation to Reimburse 50% of the Certified Contribution Rate ▪ Impact - $732,485 (Net Impact After Mandatory Contribution is an Expense of $619,375)

24. Revenues – Local 2014-20152015-16 DESCRIPTIONBUDGETPRELIMINARY$ INC (DEC)% INC (DEC) CURRENT REAL ESTATE $52,677,984$54,210,008$1,532,0242.91% INTERIM REAL ESTATE 400,000 -0.00% PUBLIC UTILITY TAX 73,000 -0.00% EARNED INCOME 3,650,000 3,900,000 250,0006.85% TRANSFER TAX 700,000 -0.00% DELINQUENT TAX 1,450,000 1,700,000 250,00017.24% EARNINGS ON INVESTMENTS 50,000 -0.00% IDEA 565,257 -0.00% RENTALS/FEES/MISCELLANEOUS 150,000 -0.00% FACILITY USAGE/CONTRIBUTIONS 50,059 -0.00% FUND BALANCE APPROPRIATION 714,330 -0.00% TOTAL REVENUE FROM LOCAL SOURCES $60,480,630$62,512,654$2,032,0243.36%

25. Local Revenue Drivers ▪ Real Estate Tax – Imposition of Increased Millage Rate ▪ Impact - $1,398,343 – Growth of Assessment Base ▪ Impact - $133,681 ▪ Delinquent Real Estate Tax – Liens Filed with Chester County Tax Claim Bureau ▪ Impact - $250,000 ▪ Earned Income Tax – Collections Through Keystone Collection Group ▪ Impact - $250,000

26. Interim Real Estate Taxes

27. Transfer Taxes

28. Earned Income Taxes

29. Delinquent Taxes

30. Earnings from Investments

31. Summary

32. Preliminary Budget ▪ Proposed Real Estate Tax Increase – 2.67% Increase – 28.6871 Mills ▪ Apply for Act 1 Exceptions – PSERS Contributions ▪ Appropriation of Fund Balance – $714,320 ▪ Begin Process of Budget Deliberations – Finance Committee Meetings ▪ First Monday of Every Month ▪ Next Meeting – March 2, 2015 ▪ Open to the Public ▪ Governor Wolf’s Budget – Proposed Budget Release in March

33. Historical Millage Rates

34. Historical Millage Percentage Increase

35. Average Real Estate Tax

36. Average Real Estate Tax Increase

37. Real Estate Tax Rate History

38. Questions?