Open Finance Committee Meeting

March 9, 2015

Budget GoalsTo maintain all district programs at a

level of excellence.

To maintain all current class sizes.

To deliver a budget at the lowest possible cost to taxpayers in order to uphold the district’s track record of efficient spending.

How Chatham ComparesPer-Pupil AP Participation Post-Secondary

Budgetary Cost Rate EnrollmentChatham $12,954 70.1% 93.0%New Providence $13,165 42.2% 88.0%Millburn $14,608 61.9% 87.0%Livingston $14,385 55.4% 89.0%Madison $13,752 49.6% 85.0%Westfield $13,087 44.8% 90.0%Bernards $13,897 53.6% 88.0%Summit $14,291 68.0% 84.0%Montgomery $13,907 62.4% 88.0%Princeton $18,688 87.8% 86.0%State Average $14,783 NA NA

School District

1. Budgetary costs are taken from the NJDOE Taxpayers’ Guide to Education Spending, 2014 (http://www.state.nj.us/education/guide/2014/)

2. Performance data are taken from the NJDOE School Performance Reports, 2015 (http://education.state.nj.us/pr/)3. AP Participation Rate = Number of students, as a percentage of 11th and 12th graders, who took at least one AP test in 2013-20144. Post-Secondary Enrollment = % of students enrolled in higher education 16 months after high school graduation

How Chatham Compares—Morris County

1. Budgetary costs are taken from the NJDOE Taxpayers’ Guide to Education Spending, 2014 (http://www.state.nj.us/education/guide/2014/)

Per-PupilBudgetary Cost

Mountain Lakes NABoonton $17,777Morris $15,883Parsippany-Troy Hills $15,310Roxbury $14,904Kinnelon $14,840Pequannock $14,572Montville $14,462Randolph $14,403Jefferson $14,224Madison $13,752Chatham $12,954Dover $11,738

School District

County Average = $14,568

Updates since Last Meeting (2/23)

State Aid is flat

The district qualifies for $183,801 of tax levy waiver

The maximum tax levy increase the Board could propose is $1,338,653, or 2.3%

Budget Prior Two Years2013/2014: 3.46% tax levy increase

◦ “second questions” for school counseling staff and security personnel

2014/2015: 3.34% tax levy increase ◦ “second question” for STEM staff and

resources

2015/2016 Budget: Expenditures

Sufficient funding to maintain program excellence and current class sizes.

Modest capital improvements◦ Restrooms at CHS; 40% state funding◦ Parking lot paving at WAS

Staff to support special education programs

Overview of ExpendituresDescription Adjusted Budget

2014/2015Proposed Budget

2015/2016 Adj Bud vs Prop

Bud % Change

Instruction -- Regular $21,966,711 $22,487,021 $520,310 2.37%Instruction -- Special Ed $10,300,070 $10,538,625 $238,555 2.32%

Co-Curricular Activities & Athletics $1,101,454 $1,132,117 $30,663 2.78%Attendance/Nursing Services $719,953 $705,927 ($14,026) -1.95%

Guidance $1,342,742 $1,379,272 $36,530 2.72%Curriculum/Instruction $2,274,839 $2,322,407 $47,568 2.09%General Administration $1,215,263 $1,108,432 ($106,831) -8.79%School Administration $2,795,321 $2,840,346 $45,025 1.61%

Central Office & Admin Info Technology $1,417,479 $1,435,655 $18,176 1.28%Operation Maintenance $5,607,326 $5,724,313 $116,987 2.09%

Transportation $2,528,907 $2,509,854 ($19,053) -0.75%Employee Benefits $9,356,011 $9,567,421 $211,410 2.26%

Transfer to Charter School $10,500 $0 ($10,500) -100.00%Summer School $167,150 $182,000 $14,850 8.88%

Subtotal General Expenditures $60,803,726 $61,933,390 $1,129,664 1.86%Capital Outlay $1,712,771 $426,669 ($1,286,102) -75.09%

Grants & Entitlements $1,392,552 $915,214 ($477,338) -34.28%Debt Repayments $2,732,888 $2,683,751 ($49,137) -1.80%

Prior Year Open Purchase Orders $3,281,688 $0 ($3,281,688) -100.00% Total Expenditures $69,923,625 $65,959,024 ($3,964,601) -5.67%

Overview of Revenues/Expenditures and Tax Increase

Adjusted Budget

2014/2015

Proposed Budget

2015/2016Tax Increase 3.34% 1.77%Local Tax Levy 57,742,607 58,767,459Enrollment Adjustment 0Free Balance 276,750 282,490Capital Reserve WD 1,570,000 412,459Other Revenue 574,000 544,510State Aid/Extraordinary 400,000 400,000Additional State Aid 1,953,141 1,953,141Prior Year Encumbrances 3,281,687 0Total Operating Budget 65,798,185 62,360,059Federal Sources 927,846 740,140Other Grants 464,706 175,074Debt Repayment 2,732,888 2,683,751Total Revenue 69,923,625 65,959,024Estimated Expenditures as of 3/6/2015 65,959,024Reduction in Expenses to Balance Budget 0

Estimated Tax Impact2013/2014 2014/2015 2015/2016

Tax Levy Increase 3.46% 3.34% 1.77%Local Tax Levy 55,874,234 57,742,607 58,767,459

Chatham Borough $33.63 $25.79 $15.23Chatham Township $41.32 $48.45 $27.95

Chatham Borough $235.43 $180.56 $106.62Chatham Township $289.27 $339.12 $195.67

Estimated Annual Tax Impact--per $100,000 of Assessed Value

Estimated Annual Tax Impact--$700,000 Home

Tax Levy ComparisonYEAR Increase

2005/2006 6.8%2006/2007 4.1%2007/2008 8.2%2008/2009 7.6%2009/2010 2.2%2010/2011 7.4%2011/2012 2.4%2012/2013 2.3%2013/2014 3.5%2014/2015 3.3%

PROPOSED 2015/2016 1.77%

Tax Levy Comparison1.77% proposed tax levy

increase results in a tax impact per $100,000 that is more than 41% lower than last year’s tax impact in both the Borough and Township.

Tax Levy AuthorityThe district is proposing a budget

that does not exercise the $183,801 in tax levy waiver.

The district’s proposed budget is $130,000 below the 2% allowable tax levy amount.

The district will have $313,801of “banked cap” available for the 2016/2017 budget year.

April Budget Vote18 school districts out of 500+

continue to have an April budget vote District County District County

Bridgeton Cumberland Newark EssexChatham Morris New Brunswick MiddlesexCliffside Park Bergen North Bergen BergenFairview Bergen Oakland BergenGarfield Bergen Palisades Park BergenGreenwich Warren Passaic PassaicHackensack Bergen Riverdale MorrisIrvington Essex Totowa PassaicNeptune Monmouth Weehawkin Hudson

Source: The Star Ledger, March 8, 2015.

CalendarMarch 9: Open Finance Committee meetingMarch 9: Submittal of preliminary budget to

ECSMarch 23: Public Budget HearingMarch 31: Deadline for voter registrationApril 21: Vote-by-mail applications must be

received by County Board of Elections

April 21: Budget Vote, Referendum Vote, and School Board Election

7:00 am – 9:00 pm, CMS and CHS

Referendum ComparisonTotal $ Amountof Referendum

Gymnasiums at CMS and WASClassrooms at CMS, WAS, and LAFCougar Field HouseLibraries at CMS and LAFTurf FieldsAuditoriums at CMS and CHSSTEM Labs at CMSClassrooms at MAS and WASCougar Field ImprovementsTurf Field at CHS

2015 $24,838,000 $25* $25*

Year Projects Tax Impact per $100,000 of AssessmentBOROUGH TOWNSHIP

2005 $26,712,000 $71 $57

*includes savings derived from refunding of the current debt and state’s share of over 10% of project cost

How Chatham ComparesPer-Pupil AP Participation Post-Secondary

Budgetary Cost Rate EnrollmentChatham $12,954 70.1% 93.0%New Providence $13,165 42.2% 88.0%Millburn $14,608 61.9% 87.0%Livingston $14,385 55.4% 89.0%Madison $13,752 49.6% 85.0%Westfield $13,087 44.8% 90.0%Bernards $13,897 53.6% 88.0%Summit $14,291 68.0% 84.0%Montgomery $13,907 62.4% 88.0%Princeton $18,688 87.8% 86.0%State Average $14,783 NA NA

School District

1. Budgetary costs are taken from the NJDOE Taxpayers’ Guide to Education Spending, 2014 (http://www.state.nj.us/education/guide/2014/)

2. Performance data are taken from the NJDOE School Performance Reports, 2015 (http://education.state.nj.us/pr/)3. AP Participation Rate = Number of students, as a percentage of 11th and 12th graders, who took at least one AP test in 2013-20144. Post-Secondary Enrollment = % of students enrolled in higher education 16 months after high school graduation