2024-25 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
Enrollment
Why Start With Enrollment?
✓ ✓ ✓ ✓
Enrollment projections are 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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What Does Enrollment Change in Monroe County Look Like?
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Tax Levy Limit Reminder that it is a cap on the Levy, not on tax rates!
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Four 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 ✓
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✓
The growth factor has some fluctuation due to assessment variability and town reassessments CPI forecasted above 2% as well, both will have an impact on the formula being higher. Stable exemptions moving forward for capital exclusions
State Aid ✓ ✓
✓
✓ ✓
Miscellaneous
Unpredictability returns to the Foundation aid formula! Difficult to estimate, looked at trend increase before the phase in to predict Outlook is less rosy than in previous projections for state funding Expense based aids should remain stable UPK-still making changes to our reporting and funding streams
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✓ ✓ ✓
✓
PILOT payments remain flat 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 no slowing down of minimum wage increases Domino impact on FICA/Pension costs Potential breakage from retirements factored into instructional salaries
Debt Service ✓
You will now see a two year impact in the projection for EV Bus conversion costs just on the bus expenditure side
Benefits ✓ ✓
✓
Pension
What a difference a year makes Adjusted impact to outgoing years for RASHP 2 cost increase factors Medical trend impacts projections immensely in the outgoing years!
BOCES Services ✓
✓
Tuition costs for BOCES program dependent on labor shortage predicted a higher trend Software and Infrastructure needs not slowing down
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✓
✓ ✓
Reassessed the projection for ERS as there was another increase TRS has remained stable Will the market change with new Federal Administration?
Supplies/Contractuals ✓
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With per pupil formulas for budgeting these costs are more readily containable based on enrollment fluctuations Realistically will see cuts here as budget for 2025-26 comes around
THANKS! Any questions?
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