OVERVIEW OF FINANCIAL STATUS

1. OVERVIEW OF FINANCIAL STATUS Presented To: Chenango Forks CSD Presented On: November 14, 2013 Presented By: Kathy Blackman, C.P.A. Controller, Central Business Office

2. Tonight’s Topics • Fund Balance Concepts • Long Range Projection Assumptions • CBO Long Range Projection • Other Long Range Projection Scenarios • Summary of Scenarios • Impact to Programs • Questions

3. Fund Balance • Fund Balance is the Equity of the School District • Unassigned Fund Balance is that part of Fund Balance which is not designated for reserves, tax levy reductions, etc. • Unassigned Fund Balance is statutorily limited to 4% of the budget for the upcoming school year • Assigned Fund Balance is the amount of fund balance designated to support the following year’s budget.

4. Structural Deficit • A budget deficit that results from a fundamental imbalance in government receipts and expenditures, as opposed to one based on one-time or short-term factors.

5. Long Range Projections • Developed based on ACTUAL projected expenditures and revenues—NOTBUDGET • 2013-2014 thru 2017-2018 • Breaks down major categories of expenditures and revenues and applies a series of assumptions

6. Long Range Projection Assumptions Expenditure Increases • Salaries: 2.5% all years • TRS Rate: Increase to 17.75% and then slowly decrease • ERS Rate: Small decrease in 14-15 with continued decrease • Health Insurance: 3.99% in 14-15 and then 7% • BOCES: 7% in 14-15 and then 4% • Fuel & Utilities: 3% all years • Debt Service: Based on actual schedules • All Other Expenditures: 1% all years

7. Long Range Projection Assumptions Revenue Increases • Building Aid: Based on projected debt service • All Other State Aid: 1.5% all years • Other Revenue: Flat with adjustments made for anticipated change in health insurance surplus distribution • Tax Levy: 1.5% in 14-15 and 2% Thereafter

8. CBO Long Term Projection1.5% Levy and 2% Thereafter *Excludes encumbrance carry over

9. Additional Scenarios In the following scenarios the only change that was made was for the tax levy: • 2.5% for 4 years • 9.9%, 9.9% and then 2.5% for 2 years • 0% for one year and 2.5% thereafter • 12.5% for one year and 2.5% thereafter

10. Long Term Projection2.5% Tax Levy Increase Annually *Excludes encumbrance carry over

11. Long Term Projection9.9% Tax Levy Increase for 2 Years *Excludes encumbrance carry over

12. Long Term Projection0% Tax Levy Increase for 1 Year *Excludes encumbrance carry over

13. Long Term Projection12.5% Tax Levy Increase for 1 Year *Excludes encumbrance carry over

14. Summary

15. Summary

16. Impact to Programs