Mountain Lakes Board of Education

2009 – 2010 Budget Hearing

Not “Business as Usual”

March 30, 2009

2

Respecting today’s reality: spending discipline, creativity and savings

• Tight control over on-going expenses • Significant new sources of recurring savings • Re-investment of savings/other in necessary roof

repairs– $1,049,647 to be spent at High School & Wildwood

(toward total cost of $1.8 million) – Roof repairs account for 150% of 2009/10 general

fund tax increase (…and >70% of increase in expenses)

• 2nd lowest overall tax increase in 10+ years – +3.66% / +$682,942 overall– +$338 for average home

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Respecting today’s reality: spending discipline, creativity and savings

• Prior year savings of $407,897 carried forward to help offset 2009/10 expenses

• All 2009/10 school instructional budgets are flat or down versus 2008/09

• Several new sources of recurring savings– Reduction of 1 administrator, 2 teachers, 1 custodian (-$324,556)

• In addition to 1 administrator eliminated in 2008/09– Newly negotiated health benefits opt-out (-$33,240 savings to-

date)

• Utilizing $225,000 Capital Reserve established in June 2008 to help fund roof replacements

• Implementing State mandated inclusive pre-school program at no incremental cost

• No reduction in current programs

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5

Entire tax increase is traceable to roof repairs: WHY NOW?

• High School & Wildwood roofs in need of repair – Sections to be replaced are 15-18 years old– Included in Long Range 5-Year Facilities Plan

• Failure to address situation now threatens additional damage & even higher repair costs

• Expect meaningful “savings” due to current market conditions (bidding more competitive than usual)

• 40% state subsidy of $738,885 at risk if we wait– Cost to District only $1,049,647 out of $1.8 million total

• Represents an appropriate “investment” of the one-time $123,990 Boonton Township tuition recapture

• Utilizes the $225,000 Capital Reserve established last year• Enables participation in solar energy project (& future

savings)• Addresses non-recurring cost within state cap and without

taking on any additional debt

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Budgetary Goals

• Maintain a Budget in Accordance with New Accountability Regulations

• Maintain Programs and Favorable Class Size

• Reduce Cost Where Appropriate (Staffing, Health Benefit Buyback, Hiring Practices and Cooperative Purchasing)

7

The Surplus and New Fiscal Accountability

• Surplus– Limited to 2% for 2009-2010

• New Fiscal Accountability– Tax Levy Cap– User Friendly Budget– Administrative Cost Limits

8

State Aid

• Aid Figures Released March 12, 2009

• Same Allotment as 2008-2009

• State Entitlement Aid 2009-2010 $951,058

• Represents Less than 3% of Total Revenue

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Enrollment ComparisonMtn. Lakes AI Mtn. Lakes AI

Actual Actual Projected Projected 2008-2009 2008-2009 Total 2009-2010 2009-2010 Total

High School 646* 52 698 700* 46 746

Briarcliff School 295 20 315 298 19 317

Wildwood School 490** - 490 501** - 501Pre-school Program 30 30

Subtotal HS,BC,WW 1431 72 1503 1529 65 1594

Lake Drive School - 102 102 - 95 95Auditorily Impaired

GRAND TOTAL 1431 174 1605 1529 160 1689

*Includes 270 Boonton Twp. Students and 8 Non-resident Tuition Students**Includes 3 Non-resident Tuition Students

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2009–10 Budget Analysis(Excluding Lake Drive School)

Administration7%

Employee Benefits14%

Health Services

1%

Special Projects

2%

Debt Service5%

Capital Outlay

4%

Special Education

12%

Transportation

2%Operation & Maintenance

12%

Instruction

41%

BUDGET ALLOCATIONS $25,658,493

EXPENDITURES UNDER GAAPCLASSIFICATION AND CODING SYSTEM

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Budget Highlights 2009-10

• All School Budgets (Instructional items) held at or below ‘08–’09 levels

• Reduction of two teaching positions, saving $140,846

• Reduction of one administrator, saving $134,402

• Reduction of one custodian, saving $49,308

• All existing and new courses taught by existing staff

• Implement new inclusive State mandated pre-school program at zero incremental cost

• Major Roof Projects (Wildwood and High School) totaling $1,847,211; State funding in excess of $700,000

• Second lowest tax increase in over a decade

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Superintendent Highlights

• Maintain the Highest Quality of Education

• Goals of the Long Range Education Plan

• Continue Progress in Curriculum Development

• Continue Progress in Professional Development

• Maintain Favorable Class Sizes at All Levels

• Maintain All Current Course Offerings and Programs

• Implement a New Inclusive Pre-school in the District

• Repair Roof on High School and Wildwood School

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2009-10 Proposed Capital Projects

High SchoolSection of Roof (over 75% will be completed) $815,455

Wildwood SchoolCircular Roof $234,192Subtotal $1,049,647

Briarcliff SchoolInstructional Equipment $9,200

Special EducationInstructional Equipment $20,010

TechnologyEquipment $12,301

Grand Total $1,091,158

Roof Replacements Represent 96.1% of Capital Outlay Budget.

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Proposed 2009-10 Budget2008-2009 2009-2010 Increase $ Increase%

General FundAppropriations:Current Expense $22,134,417 $22,915,461 $781,044 3.53%Capital Outlay $400,510 $1,091,158 $690,648 172.44%

OVERALL $22,534,927 $24,006,619 $1,471,692 6.53%

Tax Levy:General Fund $17,504,158 $18,204,324 $700,166 4.00%Debt Service $1,133,184 $1,115,960 -$17,224 -1.52%

OVERALL $18,637,342 $19,320,284 $682,942 3.66%

Roof replacements represent 150% of our General Fund tax increase.

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Revenue Source - 3 Yr. PeriodCurrent Budget Tentative Budget Change

2008-2009 2009-2010 2009-2010

BalancesAppropriated $100,000 $407,897 $307,897

Capital Reserve $0 $225,000 $225,000

Local Taxes $18,637,342 $19,320,284 $682,942

Tuition (Btn. Twp. = 270) $3,539,700 $3,646,350 $106,650Tuition (Non-res. =11) $186,905 $148,000 -$38,905 (8 ) HS (3) Elementary)Back Tuition (Btn. Twp.) $0 $123,990 $123,990Tuition Pre-school $0 $60,000 $60,000

State Aid $979,165 $951,058 -$28,107

Other $511,549 $410,508 -$101,041

Miscellaneous $240,000 $240,000 $0 TOTAL REVENUE $24,194,661 $25,533,087 $1,338,426

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Homeowner Tax Increase

2008-2009 2009-2010 Increase % Increase

General Fund $17,504,158 $18,204,324 $700,166 4.00%Debt Service $1,133,184 $1,115,960 -$17,224 -1.52%TOTAL $18,637,342 $19,320,284 $682,942 3.66%

2008 School Taxes on average assessed residence of $1,007,624 = $12,4642009 School Taxes on average assessed residence of $866,208 = $12,802(Increase of $338)

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2009-10 Tax Impact Analysis Assessments Chg. Rate Chg. Tax Levy Year

1999 $601,005,851 +2.43% 1.693 2.54% 7.55% 99-00

2000 $608,818,258 + 1.25% 1.768 4.44% 4.08% 00-01

2001 $616,122,556 +1.20% 1.897 7.28% 12.84% 01-02

2002 $624,249,760 +1.32% 2.043 7.70% 5.84% 02-03

2003 $630,961,930 +1.07% 2.181 6.75% 9.63% 03-04

2004 $634,515,951 +.55% 2.387 9.43% 10.43% 04-05

2005 $639,917,067 +.85% 2.520 5.57% 2.90% 05-06

2006 $1,474,084,000 +230.36% 1.137 54.88% 4.95% 06-07

2007 $1,473,816,100 -0.01% 1.190 4.62% 4.32% 07-08

2008 $1,477,533,321 +.0025% 1.237 3.92% 4.09% 08-09

2009 $1,284,172,607 -13.08% 1.478 19.48% 3.66% 09-10

2008 School Taxes on average assessed residence of $ 1,007,624 = $12,464. (Increase of $479)

2009 School Taxes on a verage assessed resid ence of $86 6,208 = $12,802. (Increase of $338)

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The Election

• Budget Public Hearing – March 30, 2009

• Election: April 21, 2009

• Polls Open from 7:00 am – 9:00 pm

• Mountain Lakes High School

• Board Member ElectionThree Year Term (vote for three [3])– Petrina Dawson– Catherine Mitchell– Kim M. Sheppell

• Resolved, that there should be raised for the General Fund, $18,204,324 for the ensuing school year. (2009-2010)

Mountain Lakes 2007/ 08 Actual Cost per Student Figures(per A4-1/A4-2 State Report)

# of How Viewed? $ 000 Students* * $/ Student

Total District Spending* $31,930.8 1682.5 $18,978

Total Lake Drive School* $12,122.8 199.2 $60,858

Total District Spending, excl. Lake Drive* $19,808.0 1483.3 $13,354

Costs not included in State-defined comparisons* $1,221.0 1483.3 $823

Mt. Lakes, excl. LD and costs not included by State $18,587.0 1483.3 $12,531

MLHS $9,260.8 693.6 $13,352

Briarcliff $3,657.6 300.9 $12,155

Wildwood $5,668.7 488.8 $11,597

Nearby School Districts (as Budgeted)* * *

"Mountain Lakes as Shown in State Report" $18,502

Boonton Town (K-12) $14,283 Butler Boro (K-12) $13,740 Chathams (K-12) $11,807 Parsippany-Troy Hills $13,462 Kinnelon (K-12) $12,158

Boonton Township (K-8) $12,077

Morris Hills Regional (9-12) $15,706 West Morris Regional (9-12) $14,372

* Not comparable to generally published Cost/ Student figures (which exclude certain Out of District Tuition and Student Transportation Expenses)* * based on Average Daily Enrollment figures* * * based on 2007/08 Budgets, per NJDOE website Comparative Spending Guide