Binghamton City School District Financial Outlook

Binghamton City School District Long-Range Plan & Tax Levy Limit Presented by: Kathy Blackman, CPA, Central Business Office Controller February 23, 2021 1 Educate Empower Challenge

Projected 2020-2021 Performance Projected 6/30/2021 Revenues $122,129,184 Expenditures $116,293,346 Operating Loss/Profit $ 5,835,838 Note: This projection is expected to be refined as additional become available. Educate Empower Challenge 2

Projected 2020-2021 Performance Factors that have contributed to the 2020-21 projection: Revenues: Restoration of the 20% state aid withholding Expenditures Significant savings in salaries due to reduced and unfilled positions especially non-instructional, substitute teachers & stipends and related benefits Reduced costs related to students with disabilities and alternative education placements Reduced utility and fuel costs The District instituted a spending freeze which has generated program savings Educate Empower Challenge 3

Projected Status of Fund Balance 6/30/21 2019-20 Actual 2020-21 Projected Increase/ (Decrease) Non-Spendable FB $44,606 $44,606 $-0- Restricted Reserves $10,957,368 $16,604,357 $5,646,989 Appropriated FB $2,450,000 $2,450,000 $-0- Encumbrances $620,775 $0 ($620,775) Unassigned FB $4,040,677 $4,850,301 $809,624 TOTAL FUND BALANCE $18,113,426 $23,949,264 $5,835,838 Educate Empower Challenge 4

Projected Status of Reserves 6/30/21 2019-20 Actual 2020-21 Projected Increase/ (Decrease) Unemployment Reserve $399,223 $164,939 ($234,284) Retirement Contrib. (ERS) $6,013,250 $6,017,231 $3,981 RCR Sub-fund (TRS) $1,716,059 $2,609,173 $893,114 Employee Benefit Accrued Liability $253,998 $254,249 $251 Tax Certiorari Reserve $825,583 $758,375 ($67,208) Capital Reserve $1,749,255 $1,750,390 $1,135 Potential Funding of Reserves $-0- $5,050,000 $5,050,000 TOTAL FUND BALANCE $10,957,368 $16,604,357 $5,646,989 Educate Empower Challenge 5

Assumptions in the long range projection Projected Revenues Revenues: State Aid assumes a 0% increase in Foundation Aid and a 20% restoration per year of the LDFA over 5 years Expenditure Driven State Aid (excluding Building Aid) are projected to decrease for 2021-22, then increase modestly The tax levy is projected at an estimated Tax Levy Limit Tax Levy State Aid Other Educate Empower Challenge 6

Assumptions in the long range projection Projected Expenditures Expenditures: Staff is based on the current draft of the 2021-22 Budget The modified health Insurance rate is projected at an estimated 1.70% increase in 2021-22, then 7.00% each year thereafter. Teacher (TRS) and Employee (ERS) Retirement Systems costs are projected to moderately increase Other costs, including BOCES are projected to increase based on in- person instruction Salaries Benefits Debt/Interfund to Capital Other Educate Empower Challenge 7

Long Range Projection 2020-21 2021-22 2022-23 2023-24 2024-25 Tax Levy % 1.95% 0.64% 0.32% 2.25% 1.90% Beginning Fund Balance $18,113,426 $23,949,264 $25,222,395 $21,700,439 $10,203,700 Operating Surplus/ (Deficit) $5,835,838 $1,273,131 $(3,521,956) $(11,496,739) $(14,702,007) Ending Fund Balance $23,949,264 $25,222,395 $21,700,439 $10,203,700 ($4,498,307) Educate Empower Challenge 8

Long Range Projection 10,000,000 Total Projected Operating Surplus/(Deficit) 5,000,000 0 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 -5,000,000 -10,000,000 -15,000,000 -20,000,000 Funding cliff as a result of the loss of Federal Stimulus Educate Empower Challenge 9

Long Range Projection Current Projection Reduce Expenses and Use Reserves in 2022-2023 to close gap Reduce Expenses and Increase Use of Reserves in 2023-2024 to close gap $10,000,000 $5,000,000 $0 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 ($5,000,000) ($10,000,000) ($15,000,000) ($20,000,000) Funding cliff as a result of the loss of Federal Stimulus Educate Empower Challenge 10

Tax Levy Limit Calculation Step 1 Prior Year Tax Levy Step 2 Tax Base Growth Factor Step 3 PILOTS 2020-21 Step 4 Exclusions 2020-21 (Capital Levy & Torts) Step 5 Allowable Growth Factor Step 6 Available Carryover Step 7 PILOTS 2021-22 Step 8 Exclusions 2021-22 (Capital Levy, Pensions & Torts) Result Maximum Allowable Levy within Tax Levy Limit Educate Empower Challenge 11

Binghamton TAX LIMIT STEPS Step 1 Prior Tax Levy $ 43,666,029 Step 2 x Tax Base Growth Factor 1.00 $ 43,666,029 Step 3 + PILOTS current year $ 1,118,936 Step 4 - Exclusion: Capital Levy, current year ($ 1,141,280) $ 43,643,685 Step 5 x Allowable Growth Factor 1.23% $ 44,180,502 Step 6 + Available Carryover -0- Step 7 - PILOTS next year ($ 1,179,346) TAX LEVY LIMIT $ 43,001,156 Step 8 + Exclusion: Capital Levy, next year $ 945,770 MAXIMUM ALLOWABLE LEVY LIMIT $ 43,946,926 Educate Empower Challenge 12

Maximum allowable tax levy LIMIT Maximum Tax Levy Increase without Super Majority 2021-22 Maximum Allowable Tax Levy* $43,946,926 2020-21 Tax Levy $43,666,029 Maximum increase in Tax Levy to remain under Tax Levy Limit $ 280,897 Percentage Increase 0.64% *Without voter approval in excess of 60% Educate Empower Challenge 13

Variables impacting levy limit Allowable Growth Factor Capital Levy PILOTS $536,817 ($195,510) ($60,410) 1.23% Decrease in 2021-22 Increase in PILOTS Total = $280,897 Educate Empower Challenge 14

Questions Educate Empower Challenge 15