Antietam

School District
&
Exeter Township School District

Projected Merged Budget

2016-17 & 2017-18
March 26, 2014
1

BUDGET SUMMARY
Exeter Township School District
2015-2016

2016-2017

2017-2018

Projected Revenue

69,486,393

71,787,292

73,893,496

Projected Expenditures

71,508,238

75,090,217

77,666,196

Revenue Less Exp

(2,021,845)

(3,302,925)

(3,772,700)

Fund Balance Beg of Year

13,303,002

11,281,157

7,978,232

Increase (Decrease)

(2,021,845)

(3,302,925)

(3,772,700)

Fund Balance End of Year

11,281,157

7,978,232

4,205,532

BUDGET SUMMARY
Antietam School District
2015-2016

2016-2017

2017-2018

Projected Revenue

16,251,499

16,739,982

17,157,720

Projected Expenditures

16,951,299

17,726,628

18,254,108

Revenue Less Exp

Fund Balance Beg of Year

Increase (Decrease)
Fund Balance End of Year

(699,800)

3,970,015
(699,800)
3,270,215
3

(986,646) (1,096,388)

3,270,215

2,283,569

(986,646) (1,096,388)
2,283,569

1,187,181

BUDGET SUMMARY
Merged District
2016-2017

2017-2018

Projected Revenue
Projected Expenditures
Revenue Less Exp

88,527,274
92,816,845
(4,289,571)

91,051,216
95,920,304
(4,869,088)

Revenue Adjustments
Expenditure Adjustments
Revenue Less Exp Adjustments

(1,026,782)
(749,732)
(277,050)

(1,034,078)
(749,732)
(284,346)

Net Revenue Less Exp

(4,566,621)

(5,153,434)

Fund Balance Beg of Year

Increase (Decrease)
Fund Balance End of Year

14,551,372
(4,566,621)
9,984,751

9,984,751
(5,153,434)
4,831,317

REVENUE ASSUMPTIONS
Local Revenues
Real Estate Taxes increased by the projected adjusted
index of 3% each year
Loss of revenue reducing ASD millage to ETSD rate
Minimal, if any, increases based on trend data
State Revenues
Social Security & Retirement driven by wages and
contribution rates
Flat funded
Federal Revenues
Flat funded
5

REAL ESTATE TAXES

Exeter Township School District

Assessed Value
Millage
Real Estate Tax

2015-2016

2016-2017

2017-2018

1,399,820,252
32.5753
42,239,000

1,402,619,893
33.5526
43,645,000

1,405,425,133
34.6598
45,232,000

Antietam School District

Assessed Value
Millage

Real Estate Tax

2015-2016

2016-2017

2017-2018

261,416,994

261,865,288

262,277,301

36.5900

37.6800

38.8100

8,917,730

9,236,820

8,630,985

REAL ESTATE TAXES

ASD Assessed Value at ETSD Millage Rate

Assessed Value
Millage
Real Estate Tax
Incr/(Decr)

2016-2017

2017-2018

261,865,288
33.5526
7,890,948
(1,026,782)

262,277,301
34.6598
8,202,742
(1,034,078)

Merged Real Estate Taxes

2016-2017
Assessed Value
Millage
Real Estate Tax

1,664,485,181
33.5526
51,535,948
7

2017-2018
1,667,702,434
34.6598
53,434,742

General Fund Expense Assumptions:

Projections through 2017-2018
Combined District On-going Cost Savings and Increases

Projections through 2017-2018

Wage increase 2% to 2.5%

Attritional Savings: $175k per year
Benefits: HC 9%; PSERs 21.4% to
30.25%; All Other 2% to 2.5%
Supplies, Equipment, Purchased Services
1.9% to 2.5% inflationary factor
Special Education Contracted Services,
Tuition 2.5% increase based on trend
Fuel & Utilities 3.5% per year
Insurance 5% per year
Replacement Textbooks 2% per year
Technology Planned cycle of equipment
replacement
Debt Service Per payment schedule
Major Repairs & Improvements- Use of
general fund commitments or funded with
capital project funds

Combined District On-going Cost

Savings and Increases

ASD EA assumes ETEA contract salary

schedule and benefits
Eliminate staff based on school
configuration ; efficient class sizes; school
building closures; duplicate administrative
and support services.
Increase in Unemployment Compensation
Potential increase in staff due to larger
student population in ETSD high school,
and more students being transported as
well as larger transportation fleet.
Transportation vehicle and operating cost
increases due to transporting a portion of
ASD students due to school configuration
and ETSDs established transportation
practices.
Technology cost increases due to
additional licensing/maint/renewal, and
SHS one-to-one laptop initiative.
Curriculum Addl textbook costs
Building Operation cost savings resulting
from closing buildings
Other Included Costs Music Equipment

Combined School Districts

Exeter Township School District & Antietam School District
Combined School District Configuration
2016-2017 Enrollment = 4709
Enrollment Decline of 312 students from 2013-14
1800
1620
1550

1600
1400
1200
1000

900

800

700

675
600

600

625

600
510 500

480

Projected Enrollment

700
570

Building Capacity

570

360

400

225
200
Close

Close

0
MP Primary

Mt. Penn
Elem K-5

Jkwld

Lorane K-5

Owatin K-5 Reiffton K-5 AJHSH 6-8

Enrollment Projections: Source Civic Research Alliance Report

9

EJH 6-8

ESH 9-12

Teacher Contract Changes in a Combined School District

ASD to assume ETSD Contract 2016-2017
Teacher Salary Schedule Based on ETSD 2015-16 Contract Schedule
compared to 2012-13 ASD schedule with 2% escalation factor per year
through 2015-16. 91 ASD Teachers to assume ETSD Salary Schedule

Incremental Wage Increase based on Salary Schedule in 16-17

$435,606

Net Wage related cost increase in FICA and Retirement in 16-17

$ 72,942

Other Benefit enhancements for ASD teachers EXFLEX, Retirement Pay

$104,400

Potential Column Movement for ASD staff to M15, M60

$ 87,559

TOTAL

$700,507

Note: Impact of status/bargaining unit changes of support personnel are not included in this analysis.

10

Staffing Changes in a Combined School District

Eliminate Positions 28.5 FTEs (Full Time Equivalents)
(General fund positions only)
Teachers
Buildings & Grounds
Business Office Staff/Child Accounting
Principals
Elementary Building Secretaries
Superintendent
Business Manager
Buildings & Grounds Supervisor
Superintendent's Secretary
Health Assistant

Total Cost Savings

12
4.5
3
2
2
1
1
1
1
1
28.5

$2,366,027

Note: The teaching staff reduction figure is a compromise between proposals discussed by
Superintendents which ranged from 5 to 27 staff cuts. The average cost savings per
teacher is $95,301; 12 cuts saves $1,143,616.. Appropriate staffing will depend upon
schedules and anticipated class size. Other positions to be eliminated are the result of (2)
school building closures, and duplicate administrative and support services.
(Changes to food service staff are not included in the analysis .)
11

Staffing Changes in a Combined School District

Add Position 2 FTE Recommended by ASD and ETSD

Assistant Principal HighSchool
Transportation Secretary/Sub Driver

1
1

Total Cost of Recommended Positions

$166,901

Unemployment Compensation Cost Increase 2 Years

Bus Driver wage and benefit costs will increase due to an increase in routes and
driver hours but for purposes of this analysis the additional costs related to
transportation were aggregated.

12

$366,834

Staffing Changes in a Combined School District

Add Positions 4 FTEs Recommendation proposed by ETSD;
rejected by ASD
Special Ed Supervisor (elem/middle/hs)
Student Support/Alt Ed Supervisor
Security Support
Bus Mechanic

1
1
1
1

Total Cost of Recommended Positions

$339,460
(Not included in Combined District costs)

13

Combined School District

Transportation Operations Increased Costs
Exeter Township SD/Antietam SD Merger Study
Estimate of Transportation Costs
Based on Projected 2016-2017 Costs

I. Three-Tier school schedules

9-12; 6-8; K-5

I. Capital Investment:
Bus Purchase Cost - 78 Passenger school bus
Wheel Chair Lift Equipped Buses

54 Passenger Buses for Additional Non-Public Transp.

Add'l Two-way radios

QTY

Bounda ry Requi rements

expa nd when Anti eta m
7-12 a re tra ns ported

$
$

99,000 Each
107,000 Each

3 $
1 $

Total
297,000
107,000

$
$

82,000 Each
330 Each

2 $
12 $

164,000
3,960

571,960

130,300 (1)

Total New Vehicle Cost

Option to Lease Additional Buses - Annual Payments - 5 yr term; 4.5%

II. Operating Cost:

Additional Regular Routes per day
Additional Special Needs Wheel Chair Lift Equipped bus
Additional Non-Public Transportation Requirements
Add'l Staff - (1) Mechanic
- (1) Secretary/ Spare Driver
Additional hours - more square miles to cover on route
( 25 vehicles; 30 min; 181 days = 2308 hours
Additional Mileage Fuel - Antietam 5 square miles; 46k miles

$
295.00 Per Day
$
295.00 Per Day
$
295.00 Per Day
Included with Staffing
Included with Staffing

Total Additional Operating Cost

V. Transportation Subsidy; FICA & Retirement State Reimbursement Increase

Net Increase in General Fund Expense (1) + (2) - (3)

14

3 $
1 $
2 $

160,185
53,395
106,790

60,000

$
$

17,300
397,670 (2)

170,998 (3)

356,972

Combined School District

Ongoing Increased or Reduced Costs

Technology & Other

Technology Licensing, Maintenance,

and Renewal
$91,426

Senior High School One-to-One Initiative

to include ASD 9-12 students (annual
lease pymt.)
$46,200

Facility Operations

Closing Mt.Penn Primary Center and

Jacksonwald Elementary will reduce utility,
telecommunication, copier rental, repair &
maintenance, and cleaning supply costs.
Reduction in staff reflected in staffing
changes.
Estimated reduction in costs ($141,438)

Musical Instrument Lease $20,000

15

One Time Costs

Consultant - 2 Years

$ 224,640

Technology

$ 209,800

Textbooks

$ 153,000

Library Books

$ 30,000

Moving Expense

$ 100,000

Furniture and Other Bldg Accommodations $ 25,000

Total One Time Costs $ 742,440
16

Other Budget Impact Items to Consider

in a Combined School District

Compensated Absences
Benefit Waiver
Available Real Estate for lease or sale
Professional Development Costs
Charter School enrollment increase and tuition costs
Textbook purchase costs for schedule changes
Subsidy changes due to combined aide ratio
Funding from state toward implementation of merger
Legal Fees
Unassigned fund balance limitation of 8% of budgeted expenditures will
apply in a combined school district
Fund Balance Commitments
Capital Project and Capital Reserve Funds
17

Exeter Township School District

DESCRIPTION

Adjustments

Adjustments

Combined

Projection

Projection

Projection

Projection

Antietam School District

Projection

Projection

Projection

Projection

Projection

Combined
Projection

2015-2016

2016-2017

2017-2018

2015-2016

2016-2017

2017-2018

2016-2017

2017-2018

2016-2017

2017-2018

One Time/
Upfront Costs

REVENUE
Assessed Value

1,399,820,252

1,402,619,893

1,405,425,133

261,416,994

261,865,288

262,277,301

1,664,485,181

1,667,702,434

32.5753

33.5526

34.6598

36.5900

37.6800

38.8100

42,239,000
50,060
80,100
407,726
3,599,807
574,998
1,255,200
80,000
77,490
653,291
476,700

43,645,000
51,040
80,100
413,841
3,684,807
583,623
1,258,200
80,000
77,490
666,356
510,950

45,232,000
51,040
80,100
420,049
3,771,807
592,377
1,261,200
80,000
77,490
679,684
551,262

8,630,985
10,000
65,650
757,500
365,000
12,000
45,000
181,854
125,500

8,917,730
10,000
66,307
765,075
365,000
12,000
45,000
181,854
125,500

9,236,820
10,000
66,970
772,726
365,000
12,000
45,000
181,854
125,500

(1,026,782)

(1,034,078)

51,535,948
61,040
80,100
480,148
4,449,882
583,623
1,623,200
92,000
122,490
848,210
636,450

53,434,742
61,040
80,100
487,019
4,544,533
592,377
1,626,200
92,000
122,490
861,538
676,762

49,494,371

51,051,408
3%

52,797,009
3%

10,193,489

10,488,466
3%

10,815,870
3%

(1,026,782)

(1,034,078)

60,513,092
3%

62,578,801
3%

8,142,874
1,775,959
965,690
1,360,000
1,485,787
1,192,850
4,154,603
180,893
206,039

8,142,874
1,775,959
965,690
1,360,000
1,490,121
1,230,875
4,856,106
180,893
206,039

8,142,874
1,775,959
965,690
1,360,000
1,490,121
1,269,875
5,177,709
180,893
206,039

3,124,782
495,797
113,000
456,000
98,402
333,692
1,127,137
50,000
65,200

3,124,782
495,797
113,000
456,000
98,339
342,799
1,311,599
50,000
65,200

3,124,782
495,797
113,000
456,000
98,360
352,165
1,392,546
50,000
65,200

11,267,656
2,271,756
1,078,690
1,816,000
1,588,460
1,573,674
6,167,705
230,893
271,239

11,267,656
2,271,756
1,078,690
1,816,000
1,588,481
1,622,040
6,570,255
230,893
271,239

19,464,695

20,208,557
4%
525,327
2,000

20,569,160
2%
525,327
2,000

5,864,010

6,057,516
3%
194,000
-

6,147,850
1%
194,000
-

26,266,073
4%
719,327
2,000

26,717,010
2%
719,327
2,000

71,787,292
3%

73,893,496
3%

16,251,499

16,739,982
3%

17,157,720
2%

87,500,492
3%

90,017,138
3%

Local Sources
Millage
Real Estate Tax
Interim Real Estate Tax
Occupational Priviledge Tax
Realty Transfer Tax
Earned Income Tax
Mercantile Tax
Delinquent Real Estate Tax
Interest Income
Tuition
IU Federal funds
Misc Other Local Sources
Total Local Sources

33.5526

34.6598

State Sources
Basic Instructional Subsidy
Special Education Subsidy
Transportation Subsidy
Property Tax Reduction
Rental & Sinking Fund Payments
Revenue for FICA Payments
Revenue for Retirement Payments
Accountability & EAP Grants
Misc. Other State Subsidies
Total State Sources
Federal Sources
Other Financing Sources
Projected Revenue

525,327
2,000
69,486,393

194,000

18

(1,026,782)

(1,034,078)

Proj Summ Index Tax Inc

Exeter Township School District

DESCRIPTION

Adjustments

Adjustments

Combined

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Projection

2015-2016

2016-2017

2017-2018

2015-2016

2016-2017

2017-2018

2016-2017

2017-2018

2016-2017

2017-2018

EXPENDITURES
Salaries

30,336,200

Benefits

19,085,178

Non-Payroll Expendtures:
300 - Professional & Technical Serv.
400 - Purchased Property Services
500 - Other Purchased Services
600 - Supplies, Books, Heat/AC, Fuel
700 - Property
800 - Dues, Interest, Claims
900 - Principal Payment, Reserve
430 - Major Maintenance
450 - Bldg Renovations
750/760 - Major Improvements
900 - Transfer to Capital Reserve
Projected Expenditures

Antietam School District

31,303,260
3%
21,160,715
11%

32,295,080
3%
22,581,023
7%

7,393,193

2,324,402
1,778,206
5,049,631
2,339,295
820,035
5,342,690
4,349,601
4,000
79,000

2,365,020
1,830,358
5,178,933
2,402,202
895,911
5,338,049
4,463,769
4,000
148,000

2,422,010
1,884,090
5,311,619
2,466,863
907,062
5,316,122
4,478,327
4,000

523,848
545,900
1,560,589
483,313
35,000
633,711
1,225,000

71,508,238

77,666,196
3%
(3,772,700)

16,951,299

7,978,232
4,205,532

3,970,015
3,270,215

Revenue Less Exp

(2,021,845)

75,090,217
5%
(3,302,925)

Fund Balance Beg of Year

Fund Balance End of Year

13,303,002
11,281,157

11,281,157
7,978,232

4,550,745

(699,800)

7,594,977
3%
5,037,701
11%

7,802,473
3%
5,363,527
6%

536,944
562,277
1,607,407
495,396
35,000
611,926
1,245,000
-

550,368
579,145
1,655,629
507,781
35,000
585,185
1,175,000

17,726,628
5%
(986,646)

18,254,108
3%
(1,096,388)

3,270,215
2,283,569

2,283,569
1,187,181

19

(850,809)

(850,809)

(272,083)

(272,083)

(54,338)
37,776
239,422

(54,338)
37,776
239,422

150,300

150,300

Combined
One Time/
Upfront Costs

38,047,428
3%
25,926,333
11%

39,246,744
3%
27,672,467
7%

2,901,964
2,338,297
6,824,116
3,137,020
930,911
5,949,975
5,859,069
4,000

2,972,378
2,408,897
7,005,024
3,214,066
942,062
5,901,307
5,803,627
4,000
-

324,640

95,170,572
3%
(5,153,434)

742,440

9,984,751
4,831,317

148,000

(749,732)

(749,732)

(277,050)

(284,346)

92,067,113
5%
(4,566,621)

(277,050)

(284,346)

14,551,372
9,984,751

Proj Summ Index Tax Inc

183,000
234,800

(742,440)