Octorara Area School District

2014-2015 Budget Presentation

December 09, 2013

Octorara Area School District

2012-13 Review
2013-14 Update
2014-15 Draft Budget

Octorara Area School District

2012-13 Review

2012-13 Budget vs. Actual

Revenues
Expenses
Net
Revenue
Total Local
Earned Income
Total State
Bond Reimbursement
PA Accountability
Social Security Reimb.
Retirement Reimb.
Tuition
Total Federal
Med Assist ACCESS
Reimb.
Title I

Budget
45,564,536
46,664,375
(1,099,839)

Actual
46,117,967
44,276,648
1,841,319

Variance
553,431
2,387,727
2,941,158

32,449,126

33,130,582

681,456

1,525,000

2,184,113

659,113

11,897,722

11,744,866

(152,856)

740,000

687,354

(52,646)

120,294

120,294

663,511

(57,489)

721,000
1,168,000

1,133,216

%
101.21
94.88

(34,784)

70,000

26,179

(43,821)

1,217,688

1,238,489

20,801

220,000

268,774

48,774

847,688

823,853

(23,835)
4

Major Line Items

2012-13 District Revenue Breakdown

2012-13 Local Revenue Breakdown

Selected Local Revenue History

State Revenues

2012-13 Expense Summary

Budget
Salaries

Actual

Variance
Fav/(Unfav)

$18,930,094

$18,270,660

$659,434

$7,569,667

$6,802,150

$767,517

$3,927,349

$4,003,795

($76,446)

$934,200

$739,450

$194,750

$6,829,406

$6,556,208

$1,432,497

$1,298,515

$340,500

$321,380

$3,325,063

$2,954,491

Outsourced Facilities Supervisor Position,

Lower Sub Costs, Less movement on scale

Benefits
Lower Health Care Costs, Soc. Sec., Ret.

Outside Services
Outsourced Facilities Supervisor Position

Repairs/Maint. Services
Repairs/Maint., Lower Elec., Equip. Rental

Trans/Ins/Tuit/Charter

$273,198

Lower Charter School Enrollments

Supplies

$133,982

Supplies, Diesel Fuel, Natural Gas,

Capital
Dues/Fees/Interest

$19,120
$370,572

Budgetary Reserve not used / Refinanced

2008 Bond

Fund Trans/Principle

$3,375,600

$3,330,000

$45,600

Refinanced 2008 Bond

$46,664,376

$44,276,648

$2,387,727
9

Salary History

10

Required Health Care Premium History

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Total
Claims

2007-08 125,662

155,158 136,697

72,382 314,496 142,374 154,855 156,865 191,785 153,187 105,242 100,415

1,809,118

2008-09 138,017

154,536 179,266 197,349 112,362 171,333 163,946 127,176 130,016 157,056 149,241 249,891

1,930,189

2009-10 210,312

199,979

387,660 269,845 233,779 327,650 173,159 166,326 177,709 173,201 183,685 214,261

2,717,566

2010-11

295,022

207,814 172,910 172,384 177,774 212,662 156,411 240,869 233,482 167,544 216,282 405,977

2,659,130

2011-12

159,715

353,869 173,042 181,337 188,531 185,511 179,597 190,868 202,832 171,487 132,966 240,458

2,360,212

2012-13

163,938

144,581 187,274 129,059 178,849 181,508 267,891 144,066 171,179 207,599 257,640 178,721

2,212,305

2013-14

205,665

179,340 154,368 490,034 188,500

1,217,907

Does not include Stop Loss Premiums & Admin Fees

11

Claims History

12

Selected General Fund Expenditures

13

Assigned Fund Balance Rollforward

2010 -11
Designation

2011 -12
Budget

2011 -12
Assignments

2012-13
Budget

2012-13
Assignments

2013-14
Budget

Total
Assigned

Fringe Benefit

$75,000

($132,750)

$439,991

$0

$331,149

$0

$846,140

PSERS

$261,600

($475,000)

$475,000

($250,000)

$450,000

Extraordinary Building/Grounds
Repairs

$75,000

$0

$0

$0

$210,330

$0

$312,890

Extraordinary Utility Costs i.e.

Electric

$0

($20,000)

$20,000

$0

$0

$0

$20,000

Transportation - Fuel

$0

$0

$0

$0

$0

$0

$20,000

Improvements in Technology

$0

($40,000)

$40,000

$0

$0

($40,000)

$0

Designated Reserve for Interest

Expense Bond Issue

$0

($217,280)

$217,280

($304,589)

$304,589

($224,553) $588,036

Designated Reserve for H.S.

Project

$204,000

($325,000)

$325,000

($545,250)

$545,250

($325,000) $1,090,500

Current Year Assignments

$615,600

($1,210,030)

$1,517,271

($1,099,839)

$1,841,318

($839,553) $3,972,366

Total Assigned Fund Balance

$2,663,360

$1,453,330

$2,970,601

$1,870,762

$4,811,919

$3,972,366

Type of Reserve

($250,000) $1,094,800

14

Fund Balance Summary

2010 -11
Designation

2011 -12
Budget

2011 -12
Assignments

2012-13
Budget

2012-13
Assignments

2013-14
Budget

Total
Assigned

Current Year Assignments

$615,600

($1,210,030)

$1,517,271

($1,099,839)

$1,841,318

($839,553) $3,972,366

Total Assigned Fund Balance

$2,663,360

$1,453,330

$2,970,601

$1,870,762

$4,811,919

$3,972,366

Total Unassigned Fund Balance

3,642,161

3,642,161

3,574,717

3,574,717

3,568,060

3,354,417

Y/E Audited Fund Balance

$6,305,521

$5,095,491

$6,545,318

$5,445,479

$8,379,978

$7,326,782

Type of Reserve

15

Octorara Area School District

2013-14 Outlook

16

Projected Variances from Approved Budget

Revenue
EIT

Budget

Estimate

Variance

$1,600,000

$1,900,000

$300,000

$6,091,088

$5,959,635

$131,453

$250,000

$0

$250,000

Expense
Debt Service
Budgetary Reserve

17

Octorara Area School District

2014-15 Draft Budget

18

Octorara Area School District

Items to Consider:
1. Act 1 Index
2. State Funding
3. Retirement Rates
4. Affordable Care Act
5. Capital Improvements

19

Octorara Area School District

Base Index 2.1%

20

1,018,358,424

78.81

273,736,547

21.19

21

22

PSERS Retirement Rate History &

Projections
Fiscal Year

Rate

2008-09

4.76 Actual

2009-10

4.78 Actual

2010-11

5.64 Actual Original 8.22

2011-12

8.65 Actual

2012-13

12.36 Actual

2013-14

16.93 Actual

2014-15

21.40 Certified

2015-16

25.80 Projected

2016-17

28.30 Projected

23

Octorara Area School Dist

Projected PSERS Contribution

Fiscal
Year

**
Salaries

Employers
Contrib.
Rate

Total

State Share

OASD Net

Contrib.

(50%)

Cost

Increase

2007-08

17,699,680

7.13%

1,236,178

605,496

630,682

155,434

2008-09

19,040,645

4.76%

884,286

501,654

382,632

(248,050)

2009-10

19,827,415

4.78%

924,765

475,782

448,983

66,351

2010-11

19,746,819

5.64%

1,093,029

556,276

536,753

87,770

2011-12

18,663,617

8.65%

1,576,968

788,484

788,484

251,731

2012-13

18,270,660

12.36%

2,197,106

1,098,553

1,098,553

310,069

2013-14

19,019,212

16.93%

3,219,953

1,609,976

1,609,976

511,423

2014-15

19,214,930

21.40%

4,111,995

2,055,998

2,055,998

446,021

1.00% 2015-16

19,407,079

25.80%

5,007,026

2,503,513

2,503,513

447,516

1.00% 2016-17

19,601,150

28.30%

5,547,125

2,773,563

2,773,563

270,050

Octorara Area School District

On the Horizon
Affordable Care Act

PCORI (Patient-Center Outcomes Reach Institute Fees) Fees to

finance comparative effectiveness research. $1 per covered life
in 2014, $2 in 2015. (2014 - $730, 2015 - $1,460)

Reinsurance Fees Health insurance issuers and self-funded

group health plans must pay fees to a transitional reinsurance
program for the first three years of health insurance exchange
operation (2014-2016). $5.25/month ($63/yr.) x average
number of covered lives. ($45,990 / Yr.)

Excise Tax (Cadillac Tax) 40% excise tax on employers for the
value of health insurance benefits exceeding established
thresholds. For individual coverage - $10,200, family coverage
$27,500.
25

2014-15 vs. 2013-14 Expense Summary

Variance
2014-15 Budget
$19,214,930

2013-14 Budget
$19,019,212

$195,717

$9,315,198

$8,565,997

$749,200

$4,250,458

$3,977,803

$272,655

$797,375

$851,100

($53,725)

$6,091,056

$6,281,930

($190,874)

Supplies

$1,584,828

$1,542,653

$42,175

Capital
Dues/Fees/Interest

$445,175
$3,110,308

$448,816
$3,254,680

($3,641)
($144,372)

$3,425,600

$3,550,600

($125,000)

$48,234,927

$47,492,791

$742,135

Salaries
Includes Athletics & Security

Benefits
Retirement Rate 21.40% vs. 16.93%
$889K

Outside Services
Repairs/Maint. Services
Electric Projection ($73K)

Trans/Ins/Tuit/Charter
Vocational/Technical ($154K), Charter
School Tuition ($150K).

Bond Interest ($125K)

Fund Trans/Principle
Fund Transfer Eliminated ($230K),
Bond Principal $125K

26

Questions

27