Perkiomen Valley School District Annual Report 2015-16 - Page 14

Federal . 51 %
State 20.95 %
Revenues

2015-16 Budget

Expenditures
Benefits 24.31 %
Debt Service 10.09 %
Guaranteed Energy Savings
Act . 63 %
Local 78.54 %
Salaries 43.28 %
Other 2.43 %
Fixtures , Furniture & Equipment 4.52 %
Repairs , Maintenance , Transportation & Utilities 14.63 %

Data Collection is Critical to PV ’ s Budget Planning Process

Collecting data is a critical component of Perkiomen Valley School District ’ s budget process . As the administration and School Board begin building the budget , large amounts of information are compiled in an effort to guide budget discussions .
Planning the 2015-16 budget was no exception . Hit once again with a dramatic increase in the employer contribution to the Pennsylvania School Employees Retirement System ( PSERS ), the district started the budget process with a $ 2.2 million deficit . But over months of data collection , research and deliberation , the district was able to close the gap between revenues and expenditures without negatively affecting the instructional program .
The $ 97,903,988 spending plan included cost-savings initiatives such as :
• Reducing building budgets by 10 percent
• Reducing staffing through attrition
• Eliminating busing for secondary students in the Perkiomen Greene development
• Instituting a bus waiver program for high school students to reduce transportation costs
• Using $ 350,000 from the Debt Service fund balance to offset costs for debt service payments
• Using $ 246,000 from the Pennsylvania School Employees Retirement System ( PSERS ) reserved fund to offset retirement benefit costs
• Negotiating an agreement with Student Transportation of America ( STA ) to reduce the transportation provider ’ s contractual increase from 2.2 percent to 2 percent
The adjustments above , along with some additional funding from the state for special education and strong earned income tax revenues , helped reduce the deficit down to $ 761,181 . A 1.2-percent tax increase closed the gap . For homeowners with an average assessment of $ 180,000 , the tax increase was approximately $ 66 .
Even after the passage of the 2015-16 budget , the Business Department and School Board continued to pursue savings opportunities . Here are some of the cost-savings initiatives that occurred during the last school year and had a positive impact on the budget :
• A bond issue was refinanced in January 2016 , resulting in a $ 1.9 million savings for the 2015-16 budget and a cumulative savings of
$ 6 million over the next 20 years .
• The district negotiated the sale of one of its properties , the Trappe Building . The proceeds from this sale were placed into the capital reserve , which will be used for future capital projects . In addition , this transaction allowed the Trappe Building property to be placed back onto the local tax rolls , leading to more revenue for the district .
• The district also saved $ 130,000 in operations by purchasing fuel through the Montgomery County Intermediate Unit ’ s fixed pricing models .
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