Methacton School District

1

• Methacton School District
• 2009-10 Preliminary Budget

2
Budget Challenges

• Goal to Preserve Program and Class Size
• Economic Downturn
• Real Estate Market Impact
• Reduction in Collection Rate of R/E Taxes
• Significant Drop in Interim Tax Collections
• Significant Drop in Transfer Tax Collections
• Loss of Interest Income
• Inclusion of New Debt Service for 5-6 Building
• Balancing Revenues with Minimal Increase in
  Expenditures

3
Budget Process and Status

• Timeline
• February 17 Preliminary Approval
• May 19 Proposed Approval
• June 23 Final Adoption
• Budget Available for Public Inspection Jan 28
• Act 1 Impact
• Real Estate Tax Limit 4.10
• Using Exception for Debt Service
• Other Exceptions Available
• Tax Rebate/Credit

4
2008-09 Budget Status

• Revenue Shortfall 2,835,859
• Expenditure Variance 1,640,558
• Net Variance 1,195,271
• Shortfall to be funded by Fund Balance

5
Expenditure History
6
Other Expenditure Data

• Percent of 2009-10 Budget
• Salaries 48.73
• Benefits 19.11
• Instructional Services 10.16
• Non-Instructional Services 9.38
• Debt Service Transfers 12.62

7
Major Expenditures

• Professional Positions Decline 235,000
• New Prof Position Spec Ed
  47,000
• Existing Salaries Increase 970,985
• IU/NMCTC Tuitions Increase 77,128
• Retirement Total Cost
  2,015,041
• Health Benefit Costs Increase
  893,280
• Expenditures Increase 2,240,499
• Net of Debt Service Increase
  230,206
• Percentage Increase 0.27

8
Cuts to Proposed Budget

• Retirement Contribution 1,050,583
• Technology 238,858
• Facilities Budget 220,000
• Position Reductions 235,000
• Associated Benefits 75,000
• Prescription Plan Savings 210,000
• Building Budgets 121,964
• Transportation Budget 884,812
• Asst. Supt. Budget 221,985
• Contracted Security Services 72,000

9
Percentage Change - Expenditures

• Breakdown of Expenditure Variances
• 2008-09 vs. 2009-10 Budgets
• Salaries 2.00
• Benefits 1.17
• Instructional Services -5.54
• Non-Instructional Services -1.15
• Debt Service Transfers 20.17

10
Revenue History
11
Local Revenue Analysis

• R/E Tax Rev Collection Rate - Down .75
• Interim Tax Collections - Down 800,000
• R/E Transfer Tax Collections Down 500,000
• Investment Income - Down 200,000

12
Revenue Graph
81.45
16.98
1.57
13
Fund Balance Capital Reserve Usage

• 2007-08 Ending Fund Balance 6,074,192
• 2008-09 Expected Usage 1,195,271
• 2008-09 Ending Fund Balance 4,878,121
• Capital Reserve Fund Usage in Lieu of
• General Fund Use 525,000

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Millage Impact
15
Millage Impact
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Expenditure Summary

• Salaries 42,159,857 2.0
• Benefits 16,537,522 1.17
• Instruction 8,790,094 -5.54
• Non-Instr Support 8,114,524 -1.15
• Debt Service 10,916,607 20.17
• Total Expenditures 86,518,594 2.66

17
Revenue Summary

• Local 67,091,080
• State 13,989,690
• Federal 990,000
• Fund Balance 300,000
• Total Revenues 82,370,770

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Budget Summary

• Revenues 82,370,770
• Expenditures 86,518,594
• Shortfall 4,147,824
• Millage Increase 1.72 Mills
• Tax Bill Increase Average 301.17
• Estimated Tax Credit 290.00

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Closing Comments

• Adopt Preliminary Budget on February 17
• Continue to control costs via
• Negotiations
• Consortiums/Joint Purchasing
• Review of Three Year Plan
• Best Practices/Fiscal Responsibility

20
Questions/Comments