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To: Charlotte
Gregory, Interim Superintendent
From: Sandra
Owens, Business Manager
Date: November
3, 2009
Subject: Updated
Financial 5 Year Plan
In planning for the financial future of the school
district it was asked that the 5 year financial plan be updated using known
information and assumptions based on historic planning formats. In doing this
several assumptions have been used to establish the projected level of tax
increase/decrease necessary to sustain the district programs and the proposed
19.7 million dollar capital project. The following information is offered as
a means of understanding the information and the assumptions used to reach
the projections for financial planning through June 2015.
2010-2011
Projection
- Revenue
Assumptions
- State
Aid assumption based on a 2% increase as a result of expanded services
being purchased through QIII and the expectation of continued BOCES
Aid.
- The
use of 85k from the ERS Reserve set up to help phase in the increase
projections from the State Retirement System.
- The
use of 225k of prior year budget surplus, an increase of 81k. (This has
been as high as 400k+ in the past.)
- Expenditure
Assumptions
- Salary
based on 3% increase and retirement of 3 teachers at the end of 09-10
with MA3 used as replacement salaries.
- Assumes
projected increases in Teachers Retirement as well as State Employee
Retirement System’s.
- Increase
to health insurance based on replacement of all known retirements and
continuation of insurance for each retiree.
- Energy
growth of 5% although decreases have been seen through electric
decrease and the close monitoring of fuel pricing and strategic
purchasing.
2011-2012
Projection
- Revenue
Assumptions
- State
Aid again assumes 2% growth based on formulas currently used for
expense driven codes such as transportation and Questar
III services.
- No
reserve money being used this year as the tax growth is under 5% -
leave money to be used later to help build for project bump.
- The
use of 250k of prior year budget surplus.
- Expenditure
Assumptions
- Salary
based on the assumption of 2 retirements and savings for replacements
at MA3.
- Growth
of benefits at 5% based on historic data once double digit increases
are built in to system. (2007-08 growth was 185k, 2008-09 growth was
319k, 2009-10 growth was 48k due to SES closure – 2010-11 projection at
625k -future years calculated around 225k)
- Energy
growth at 5%.
2012-2013
Projection
- Revenue
Assumptions
- Continuation
of 2% growth assumption in State Aid.
- New
Building Aid project aid added to this year as the first payment will
be due June 2013 prior to end of year. Aid based on 19.7m project as
estimated by B. Donegan’s documents dated
9/29/09.
- Use
of reserves to smooth out increase necessary to bring the new payment
into the budget calculation. (25k unemployment reserve use-50k
retirement reserve use – 250k employee reserve use)
- The
use of 325k from prior year budget surplus.
- Expenditure
Assumptions
- Salary
growth of 3% less projected Grafton Elementary savings and the
assumption of 2 retirements being replaced at MA3.
- Benefit
growth of 5% less projected savings as a result of GES closure.
- Energy
growth of 5% less projected savings as a result of GES closure.
- Bond
payment as a result of 19.7m project as estimated by B. Donegan’s documents dated 9/29/09.
2013-2014
Projection
- Revenue
Assumptions
- Continuation
of 2% growth assumption in State Aid.
- The
use of 100k from employee benefit reserve and 50k from retirement
reserve for a total of 150k. (If no other contributions are made to
retirement reserve this will deplete the reserve.)
- The
use of 300k from prior year budget surplus.
- Expenditure
Assumptions
- Salary
growth of 3% with 2 retirements being replaced at MA3.
- Benefit
growth of 5%.
- Energy
growth of 5%.
2014-2015
Projection
- Revenue
Assumptions
- The
use of district reserve in the amount of 100k from employee benefit
reserve; this is assumed to be the final year that the use of reserves
is necessary.
- The
use of 300k from prior year budget surplus.
- Expenditure
Assumptions
- No
retirements in projection
- All
other areas assume same growth as in 2013-2014 projection.
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