IN Fox Chapel Area Summer 2018 | Page 13

fox chapel area school district In addition, the district maintains funds reserved for capital projects. The district had issued bonds during 2017 for capital improvement projects at Dorseyville Middle School and the Fairview, Kerr, and O’Hara elementary buildings. The district was able to issue those bonds at a savings due to lower market interest rates. In 2018- 2019, the district will be drawing down $655,000 from the capital projects’ assigned fund balance to cover a portion of the costs (see * on page 10) associated with the new Kerr Elementary building construction. By implementing sound financial strategies to manage expenditures and anticipate possible revenue shortfalls, the district’s future financial health continues to be stronger than many in the commonwealth. Gaming Funds Distribution** On May 2, 2018, the Pennsylvania Department of Education provided the Fox Chapel Area School District with the amount of the district’s share of gaming funds available for distribution. The proposed final budget includes a distribution of $1,476,655. The method of distributing these funds, as prescribed by Act 1, the Taxpayer Relief Act, will be via the implementation of the homestead exclusion. Under this provision, any property in the school district that was approved by Allegheny County as a homestead will have the lesser of its taxable value, or an estimated $9,655.61 of its taxable value, excluded for the purpose of calculating current school district real estate taxes for the 2018 tax year. The owners of the 7,827 properties in the district that qualified for the homestead exclusion will receive the equivalent of a $188.66 reduction in their property taxes. Property owners who currently do not have an approved homestead exclusion will have the opportunity to apply again when the district sends out letters to those homeowners in December 2018. **Allegheny County has certified that there are 7,827 properties in the Fox Chapel Area School District that qualify for the homestead exclusion. If that number is adjusted by the county to include more or less properties, it could affect the amount of the final reduction. 2018-2019 PROPOSED FINAL BUDGET REVENUES & EXPENDITURES Budgeted Revenues Current Real Estate Taxes: 65.22% $63,408,938 Other Real Estate Taxes: 0.09% $85,000 Act 511 Taxes: 8.73% $8,486,000 $13,183,997 Other Local Income: 1.52% Other State Revenue: 13.56% $13,183,997 Federal Revenue: 1.11% $1,076,923 Other Financing Sources: 0.80% $779,351 $97,222,505 2.47% $2,402,142 3.83% $3,720,479 1.52% $1,479,675 2.68% $2,600,000 8.73% $8,486,000 .09% $85,000 1.11% .80% $1,076,923 $779,351 Delinquent Taxes (Real Estate & Act 511): 2.67% $2,600,000 $63,408,938 Basic Instructional & Operating Subsidy: 3.83% $3,720,479 Revenue for Specific Educational Programs: 2.47% $2,402,142 TOTAL REVENUES Unassigned Fund Balance Revenues & Unassigned Fund Balance Budgeted Expenditures 2300 - Administration: 6.19% $6,111,166 2600 - Operations & Maintenance: 7.30% $7,204,163 2700 - Student Transportation: 4.30% $4,239,782 2000 - Remaining Support Services: 1.89% $1,868,941 3000 - Noninstructional Services: 2.88% $2,843,577 4000 - Facilities: 0.77% 5000 - Other Financing: 5.77% TOTAL EXPENDITURES Budgetary Reserve Expenditures + Budgetary Reserve $5,695,421 $4,644,791 $101,867,296 $5,695,421 $764,900 $2,843,577 $1,868,941 $4,239,782 1000 - Instruction, 2100 - Pupil Services, 2200 - Instructional Support Services, 2400 - Pupil Health: 70.90% $69,985,869 $764,900 $1,479,675 $7,204,163 $6,111,166 $69,985,869 $98,713,819 $4,644,791 $103,358,610 The district will balance the budget by utilizing money from the available fund balance. FOX CHAPEL AREA ❘ SUMMER 2018 11