2023-24 Long Range Financial Plan
AGENDA
✓ Fund Balance Activity ✓ Reserve Plan Overview ✓ Enrollment Updates ✓ Tax Cap & Data Dive ✓ Budget and Revenue Projections 2
“The time to repair the roof is when the sun is shining” John F. Kennedy
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Fund Balance-What is it? ✓ ✓ ✓ ✓
More than just reserves Includes non general funds Includes commodities and purchase order encumbrances How does Webster compare to other districts?
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Case Study #1
Your child has their first job and would like to purchase a house. The house of their dreams has a $3,000 monthly mortgage payment. They can only afford $2,500 per month from their salary. However, they have an inheritance from grandma of $15,000. They plan to take a little bit out of their inheritance each month to make up the difference.
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Case Study #2
Your child has their first job and would like to purchase a house. The house of their dreams has a $2,000 monthly mortgage payment. Their salary gives them $2,500 each month for mortgage payments and savings. However, they need to replace the septic system to purchase the house at a cost of $10,000. They plan to use savings to pay for the new septic system.
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Case Study #3
Your child has their first job and would like to purchase a house. The house of their dreams has a $2,000 monthly mortgage payment. In addition, they have $10,000 in savings. Their salary gives them $2,500 each month for mortgage payments and savings. However, they are purchasing an older house and realize that there may be unexpected expenses.
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Case Study #3-Continued
After they buy the house, every year something goes wrong: ✓ ✓ ✓ ✓ ✓
In the first year, the boiler needed to be replaced for $7,500. In the second year, they needed to patch the roof for $2,500. In the third year, they needed to change the plumbing to remove lead pipes for $8,000. In the fourth year, nothing went wrong. In the fifth year, their finished basement floods; it’s not covered by insurance, and they spent $11,000 on repairs.
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What is the lesson we can take away from these examples and apply to district financial operations?
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Reserve Plan
Why Start With Enrollment?
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Really is the basis for all planning Need it for facilities planning at SED Need it to plan out for class size, catchment changes Utilize the cohort survival methodology ❏ Based on weighted averages over a 10 year period ❏ A few tweaks to take into account known changes
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Enrollment
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How Does It Compare to all of NYS?
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How Does It Compare to Monroe 1 Districts?
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Tax Levy Limit Reminder that it is a cap on the Levy, not on tax rates!
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Three financial comparisons for thought generation
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“By failing to prepare, you are preparing to fail” Benjamin Franklin
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Expenditure and Revenue Projection
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Revenue Themes
Tax Levy
State Aid
Miscellaneous
Town reassessments to 100% equalization, which would cause a higher growth factor.
Foundation aid formula predictions are easy based on formula being operated at capacity
PILOT payments remain flat
CPI forecasted above 2% as well, both will have an impact on the formula being higher. Stable exemptions moving forward for capital exclusions
Expense based aids based on spending increases UPK-here to stay and local share pick up?
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Sales tax remain stable for now Interest earnings create a lot of volatility quarter to quarter Revenues such as tuitions, continuing education programs, facilities rentals are projected to remain flat to minimal increases.
Expenditure Themes
Salaries ✓
✓
Salaries for support staff are trending high due to minimum wage increases not stopping Potential breakage from retirements factored into instructional salaries
Debt Service ✓
The fifth year of planning has a surprise addition due to anticipated electric bus conversion
Benefits ✓
✓
Pension
Factored in a slowing of Medicare plan costs due to recent RASHP 1 changes Active plans trending high as prescription drug costs are skyrocketing
BOCES Services ✓
Tuition costs for BOCES program dependent on labor shortage predicted a higher trend
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✓
Reassessed the projection this year as market gains have not been as strong
Supplies/Contractuals ✓
With per pupil formulas for budgeting these costs are more readily containable based on enrollment fluctuations
THANKS! Any questions?
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