Hopewell Area School District

2018‐2019 Proposed Final General Fund Budget
Board Presentation May 7, 2018

Mission Statement

The Hopewell Area School District is committed to preparing students to be productive citizens and life‐long learners in an ever‐changing world.

2

Property Tax Relief

• State confirmed that $619,500,000 available for state‐funded property

will be tax relief.

• Hopewell’s allocation of those funds is $1,150,422.28.

• County Assessor’s office confirmed the number of Homesteads and Farmsteads of
5,414.

• HS/FS tax relief will be approximately $212.44/each

3

Average Assessments/Taxes

	Number of Taxable Parcels
	Total Assessed Value
	Average Assessed Value
	Average Current School Taxes (73.2)
	Average Value of 1 Mill
	
Hopewell Twp
	6,909
	$171,794,987
	$24,865
	$1,820.12
	$24.87
	
Independence Twp
	1,449
	$33,497,171
	$23,117
	$1,692.16
	$23.12
	
Raccoon Twp
	1,670
	$36,907,926
	$22,101
	$1,617.79
	$22.10
	
Totals
	10,028
	$242,200,084
	$23,361
	$1,710.02
	$23.36

4

Beaver County Tax Statistics

BEAVER COUNTY SCHOOL DISTRICTS

												
											incr/decr
	
		2009
	2010
	2011
	2012
	2013
	2014
	2015
	2016
	2017
	from 2009
	
ALIQUIPPA
	
Land
	195.00
	198.00
	202.00
	207.00
	212.00
	218.00
	224.00
	232
	240.50
	45.50

Building
	31.00
	32.00
	32.50
	33.00
	33.85
	34.00
	34.75
	36
	37.30
	6.30
	
AMBRIDGE
		61.02
	63.34
	69.84
	72.94
	73.94
	73.94
	75.86
	79.29
	79.29
	18.27
	
BEAVER
		61.70
	63.90
	65.00
	66.40
	67.80
	69.60
	72.20
	74.90
	77.60
	15.90
	
BIG BEAVER FALLS
		61.00
	61.00
	62.00
	62.00
	63.00
	64.00
	64.00
	66.00
	67.00
	6.00
	
BLACKHAWK
		51.26
	52.76
	53.76
	54.94
	56.14
	57.68
	59.12
	63.99
	63.99
	12.73
	
CENTRAL VALLEY
		46.80
	46.80
	47.65
	48.69
	48.69
	49.96
	51.15
	53.56
	55.67
	8.87
	
FREEDOM
		41.20
	42.00
	44.00
	44.00
	47.00
	48.30
	53.40
	57.00
	58.90
	17.70
	
HOPEWELL
		66.00
	67.00
	67.00
	67.00
	68.50
	68.50
	70.00
	72.2
	73.20
	7.20
	
MIDLAND
		28.00
	28.00
	28.00
	28.00
	28.75
	29.50
	30.25
	31.00
	31.75
	3.75
	
NEW BRIGHTON
		49.00
	51.00
	53.30
	54.60
	54.60
	57.15
	60.30
	62.47
	64.78
	15.78
	
RIVERSIDE
		60.50
	60.50
	60.50
	60.50
	61.95
	61.95
	63.50
	65.55
	67.05
	6.55
	
ROCHESTER
		53.18
	55.18
	55.18
	56.18
	62.00
	65.25
	67.00
	69.25
	70.75
	17.57
	
SOUTHSIDE
		50.00
	50.00
	51.00
	51.00
	51.00
	52.40
	53.40
	54.90
	54.90
	4.90
	
WESTERN BEAVER
		41.00
	42.50
	43.30
	46.85
	49.00
	51.00
	54.00
	56
	57.00
	16.00

												
2018‐2019 Act 1 Index 3.1%
											
Maximum allowable tax increase 2.269 mills
									
On average, a mill brings in about $226,000 after collection rate is applied
							
Every District raised taxes in 2015 except Beaver Falls
							
Every District raised taxes in 2016
										
11 out of 14 Districts raised taxes in 2017

5

Proposed Final General Fund Budget Revenue Breakdown

General Fund
	2014
	2015
	2016
	2017
	2018
	2019
		
Revenues
	ACTUAL
	ACTUAL
	ACTUAL
	ACTUAL
	BUDGET
	BUDGET
	Variance
	
Real Estate Taxes
	14,060,911
	13,968,088
	14,406,531
	14,871,314
	15,186,312
	15,986,928
	800,616
	
Public Utility Realty
	20,992
	21,659
	20,494
	19,651
	20,000
	19,000
	(1,000)
	
Payments in Lieu of Tax
	21,877
	21,877
	22,347
	22,664
	22,600
	23,000
	400
	
Act 511 Taxes
	2,531,562
	2,557,134
	2,347,798
	2,657,417
	2,585,000
	2,620,000
	35,000
	
Other Local Income
	1,580,565
	1,649,338
	1,878,835
	1,624,103
	1,521,500
	1,508,700
	(12,800)
	
Basic Instr Subsidy
	9,466,355
	9,466,406
	9,550,552
	9,660,884
	9,706,814
	9,687,058
	(19,756)
	
Tuition
	‐
	19,717
	19,927
	36,186
	20,000
	25,000
	5,000
	
Special Education Subsidy
	1,711,607
	1,810,295
	1,841,483
	1,888,113
	1,903,347
	1,900,512
	(2,835)
	
Transportation
	795,564
	893,785
	881,011
	923,521
	825,000
	875,000
	50,000
	
Revenue for Specific Ed Prog
	‐
	‐
	‐
				‐
	
Other State Revenue
	4,587,858
	5,036,503
	4,744,918
	6,648,168
	6,146,874
	6,281,843
	134,969
	
Federal Revenue
	450,413
	381,942
	447,538
	400,330
	420,000
	374,000
	(46,000)
	
Other Financing Sources
	4,420
	5,310
	5,767
	15,474
	5,000
	5,000
	‐
	
TOTAL REVENUES
	35,232,124
	35,832,054
	36,167,201
	38,767,825
	38,362,447
	39,306,041
	943,594

Overall increase of 2.46% over prior year mainly due to increase in assessed values and tax increase of 2 mills.

6

2018‐19 Preliminary Budget Revenues

1.6%

23.2%

Real Estate Taxes 40.8%	Act 511 Taxes
Other Local Income Basic Instr Subsidy Other State Revenue Federal Revenue

24.7%

3.2% 6.6%

7

Proposed Final Expenditure Budget

2014

2015

2016

2017

2018

2019
		
Expenditures
	ACTUAL
	ACTUAL
	ACTUAL
	ACTUAL
	BUDGET
	BUDGET
	Variance
	
Regular Education
	$ 14,073,512
	$	14,365,362
	$	15,123,748
	$	16,005,500
	$	16,140,022
	$	17,132,657
	992,635
	
Special Education
	$ 4,575,694
	$	4,704,010
	$	4,926,245
	$	5,756,633
	$	5,886,297
	$	6,124,896
	238,599
	
Vocational Education
	$ 1,247,364
	$	1,040,772
	$	1,134,317
	$	1,182,345
	$	1,194,709
	$	1,094,005
	(100,704)
	
Other Instructional Prgms
	$	96,709
	$	168,098
	$	119,126
	$	169,311
	$	104,542
	$	182,162
	77,620
	
Pupil Personnel‐Counseling
	$	932,645
	$	893,388
	$	938,921
	$	964,207
	$	1,018,656
	$	1,060,877
	42,221
	
Instructional Support‐Library/Prof Dev
	$	650,454
	$	700,517
	$	583,318
	$	635,493
	$	674,092
	$	671,363
	(2,729)
	
Administration
	$ 2,003,197
	$	1,974,191
	$	2,273,092
	$	2,361,092
	$	2,542,875
	$	2,584,249
	41,374
	
Pupil Health
	$	538,208
	$	538,613
	$	582,443
	$	596,599
	$	655,626
	$	663,480
	7,854
	
Business
	$	651,865
	$	679,686
	$	710,667
	$	686,801
	$	766,075
	$	667,284
	(98,791)
	
Operations/Maintenance
	$ 3,351,243
	$	3,442,612
	$	3,579,238
	$	3,805,384
	$	4,006,195
	$	4,066,832
	60,637
	
Transportation
	$ 1,823,316
	$	2,027,650
	$	2,263,070
	$	2,390,715
	$	2,339,130
	$	2,310,913
	(28,217)
	
Technology
	$	294,487
	$	79,655
	$	409,823
	$	414,745
	$	511,811
	$	540,309
	28,498
	
Other Support Svcs‐IU
	$	22,426
	$	17,783
	$	17,790
	$	46,842
	$	18,500
	$	19,275
	775
	
Student Activities/Athletics
	$	835,524
	$	872,104
	$	815,509
	$	869,701
	$	1,008,808
	$	1,043,310
	34,502
	
Community Services
	$	19,115
	$	19,556
	$	23,644
	$	21,574
	$	25,662
	$	22,471
	(3,191)
	
Facility Acquistion/Improvement
	$	‐
	$	‐
	$	‐
	$	‐
	$	‐
	$	2,000
	2,000
	
Debt Service
	$ 3,102,730
	$	3,102,287
	$	2,661,076
	$	2,804,690
	$	3,105,975
	$	3,106,775
	800
	
Refund of Prior Year Expenses
	$	19,413
	$	57,583
	$	4,660
	$	16,697
	$	‐
	$	‐
	‐
	
Fund Transfers
	$	‐
	$	758,098
	$	718,902
	$	707,361
	$	‐
	$	‐
	‐
	
Budgetary Reserve
					$	75,000
	$	75,000
	‐
	
Total Expenses/Budget
	$ 34,237,902
	$	35,741,965
	$	36,885,589
	$	39,435,690
	$	40,073,975
	$	41,367,858
	$ 1,293,883

8

Salaries and Benefits
	
25,022,563
	
25,565,258
	
27,299,108
	
28,695,929
	
29,910,784
	
30,895,566

Operating Expenses
	
6,093,196
	
6,258,735
	
6,201,843
	
7,211,013
	
7,208,191
	
7,507,292

Facilities Acquisition/Imp
	
‐

Debt Service/Transfers
	
3,810,737
	
3,917,969
	
3,384,638
	
3,528,748
	
2,955,000
	
2,965,000

TOTAL EXPENDITURES
	
34,926,496
	
35,741,962
	
36,885,589
	
39,435,690
	
40,073,975
	
41,367,858

Proposed Final Expenditure Budget by Object

0.33% 3.53%
5.74% 2.01%

5.88%

7.83%	Sals and Benefits Prof Ed Svcs Repairs/Leases Tuition/Travel Supplies/Books
74.68%	Prop & Equip

Fees/Debt Svc

9

2018‐19 Proposed Final Budget Operating Summary

2014
	
2015
	
2016
	
2017
	
2018
	
2019

ACTUAL
	
ACTUAL
	
ACTUAL
	
ACTUAL
	
BUDGET
	
BUDGET

Revenue

$35,232,124

$35,832,054

$36,167,201

$38,767,825

$38,362,447

$39,306,041
	
Expenses/ Budget

$34,237,902

$35,741,965

$36,885,589

$39,435,690

$40,073,975

$41,367,858
	
Surplus/ (Deficit)

$994,222

$90,089

$(718,388)

$(667,865)

$(1,711,528)

$(2,061,817)

Fund Balance:
							
Beginning of Year

$8,100,789

$9,095,011

$9,185,100

$8,466,712

$7,798,847

$6,087,319

End of Year
	
$9,095,011
	
$9,185,100
	
$8,466,712
	
$7,798,847
	
$6,087,319
	
$4,025,502

10

Budget Shortfall

The 2018‐2019 Proposed Final Budget projects a deficit:

– Revenues

– Expenditures

– Deficit (2 mill tax increase)

– Deficit (1 mill tax increase) – Deficit (no tax increase)

$39,306,041 ($41,367,858)

($2,061,817)

($2,288,274) ($2,514,731)

11

Contributing factors

• 3.44% increase for teachers budgeted (based on average increase from last contract) and
other contractual increases

• 3% increase in health insurance

• Additional 1st grade and Kindergarten teachers

• Increase in PSERS Employer rate from 32.57% to 33.43%

• Cyber/Charter School tuition – 112 students currently enrolled.

12

Next Steps

• Continue contract negotiations with hopeful resolution prior to final budget passage

• Continue to monitor State budget process

• Review General Fund for possible expenditures to move to Capital Reserve

• Continue account review and scrutiny

• Approve Final General Fund Budget on June 4th

13

DISCUSSION/QUESTIONS