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School District Efficiency Study Morrisville-Eaton Central School

District Advisory Committee Meeting

FINANCESAUGUST 20, 2014

Castallo and Silky Education ConsultantsJessica Cohen & Alan Pole, Consultants

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Follow Up From Previous Meetings

Castallo & Silky-Education Consultants

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Follow-up from Previous Meetings

• Enrollment projections

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Enrollment Projections Update

• 2013 Live Birth Data = 47– Projection based on 5 year average was 57

• Changes K – 12 enrollment projections for 2018 to 2020

2018-19 from 744 to 7332019-20 from 752 to 7412020-21 from 765 to 752

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FINANCES

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School District Finances• School district finances are like personal

finances in many ways……..they have money coming in (income/revenues), they have money going out (expenses/expenditures), and they have (hopefully!) savings accounts (savings/reserves)

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School District Revenue Sources

State & Federal Sources-64.9%

Property Taxes & STAR-27.7%

Operating Grants-5.4%

Charges for Services-1.0%

Other-1.0%

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School District Expenses

Instruction-68.7%

General Support-16.7%

Pupil Transportation-9.0%

Food Service Program-3.1%

Debt Service-2.5%

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History of School District Budgets

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History of School District Budgets

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-1512,000,000

12,500,000

13,000,000

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

13,300,254

14,075,370

14,545,182

15,061,255

14,378,569

14,821,982

15,246,424

15,025,042

History of School District General Fund Budgets

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School District Audit for 2012-13

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History of State and Federal Aid

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History of Reserves

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Fund Balance to Reduce Taxes

2008-09 2009-10 2010-11 2011-12 2012-130

50,000

100,000

150,000

200,000

250,000

300,000

350,000

90,000

125,000

200,000

250,000

300,000

History of Assigned Fund Balance to Reduce Taxes

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Current Outstanding Bonds

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Current Outstanding Bonds

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History of True Value Tax Rates

2009-10 2010-11 2011-12 2012-13 2013-14$13.50

$14.00

$14.50

$15.00

$15.50

$16.00

$14.39 $14.52

$15.03 $15.24

$15.70

History of True Value Tax Rates

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Tax Rates of Area Districts

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Bond Schedule for $24M Addition

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Financial Summary

Program $0

Transportation $0

Staffing -$170,560

Facilities $1,100,000

Net Increase $929,440

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Tax Impact of Building Addition

The district does not have any money in a capital reserve account

1% increase in taxes generates $35,000 in additional revenue for the

district$929,440/$35,000 =26.6% increase in taxes

to fund the addition

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Something to Remember!

• Even if the district decides not to move the elementary school to the middle/high school campus, the 2010 building condition survey identifies the following work to be considered:– Middle/High School-$3,889,264– Elementary School - $4,469,806

$8,480,838

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Study Recommendation

• It is recommended that the Morrisville-Eaton Central School District not close the Edward R. Andrews Elementary School and move the elementary grades to the middle/high school campus.

• It is recommended that the district's facilities committee reconvene to review the building condition survey and provide input to the Board of Education regarding future capital needs.

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“Take Aways”• Approximately 93% of school district revenue

comes from state aid and local taxes• The school district budget has remained

relatively constant over the past 5 years• The district is receiving less state aid today

than it was 5 years ago• The district has continued to use more of its

fund balance to control taxes in each of the past 5 years

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“Take Aways”• It would cost approximately $1,100,000/year for the

next 20 years to move the elementary school to the middle/high school campus

• After accounting for program savings, the net cost of moving the elementary school would be approximately $929,440/year or an increase in taxes of 26.6%

• Whether or not the district decides to move the elementary school, there will be facilities improvements to be considered of approximately $8,480,838

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“Take Aways”• It is recommended that the district not close

the Edward R. Andrews Elementary School and move the elementary grades to the middle/high school campus

• It is recommended that the district's facilities committee reconvene to review the building condition survey and provide input to the Board of Education regarding future capital needs.

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Questions