Middletown City School District
Five-Year Forecast Presentation
Kelley Thorpe, Treasurer
Presented May 5, 2014

May 2014 Five-Year Forecast UPDATE
• Still missing some critical and necessary information
• Pieces of the puzzle – Negotiations and programmatic changes
• Forecast is designed to be a fluid document that can be modified with changes in the economic environment
• Does not represent the entire financial picture
– only considers the General Fund

Forecast Assumptions
• Revenues:
– This forecast assumes small operating revenue increase for FY15; but not beyond
– Increase from ODE is planned
– Decrease in property values and real estate taxes

Forecast Assumptions
• Expenditures:
– This forecast assumes a slight decrease in expenses
• All budget managers given a 2% reduction for FY15
• Increase in severance due to retirements (STRS
Changes)
• Have Included a 12% increase for health insurance for
FY15 and 15% increase for outlying years

Revenue Details
Fiscal Year
2014
Fiscal Year
2015
Fiscal Year
2016
Fiscal Year
2017
Fiscal Year
2018
Revenues
General Property Tax (Real
Estate) 27,586,034 27,406,695 27,456,695 27,561,158 27,763,566
Tangible Personal Property Tax
(0) 0 (0) (0) 0
Unrestricted State Grants-in-Aid
25,792,965 27,158,516 27,158,516 27,158,516 27,158,516
Restricted State Grants-in-Aid
Property Tax Allocation
All Other Revenues
4,131,791 4,131,791 4,131,791 4,131,791 4,131,791
8,109,964 7,900,136 7,750,136 7,612,203 7,486,437
3,932,332 1,532,332 1,532,332 1,532,332 1,532,332
Total Revenues 69,553,086 68,129,469 68,029,469 67,995,999 68,072,642

Revenue Details
Operating Revenues
6%
12%
5%
40%
37%
General Property Tax (Real
Estate)
Unrestricted State Grantsin-Aid
Restricted State Grants-in-
Aid
Property Tax Allocation
All Other Revenues

Expenditure Details
Fiscal Year
2014
Fiscal Year
2015
Fiscal Year
2016
Fiscal Year
2017
Fiscal Year
2018
Expenditures
Personal Services
Employees' Retirement/Insurance
Benefits
Purchased Services
Supplies and Materials
Capital Outlay
Principal-HB 264 Loans
Interest and Fiscal Charges
Other Objects
Total Expenditures
29,197,574 29,400,568 28,824,070 28,896,130 28,968,370
11,544,685 11,324,410 12,051,189 13,221,135 14,622,915
23,841,580 23,742,989 24,338,409 24,792,918 25,256,518
1,176,343
1,600,000
1,352,816
-
1,393,400
-
1,435,202 1,478,258
-
160,580
77,395
705,227
210,082
84,323
691,122
214,802
75,407
698,034
219,750
66,262
705,014
229,939
56,802
712,064
68,303,384 66,806,310 67,595,311 69,336,412 71,324,867

Expenditure Details
2%
0%
35%
2%
17%
43%
Personal Services
Employees'
Retirement/Insurance Benefits
Purchased Services
Supplies and Materials
Capital Outlay
Debt Service:
Other Objects

Comparison to October
Oct FY14 May FY14 Difference
General Property Tax (Real Estate) 27,592,794 27,586,034 (6,760)
Unrestricted State Grants-in-Aid 29,674,192 25,792,965 (3,881,227)
Restricted State Grants-in-Aid 150,000 4,131,791 3,981,791
Property Tax Allocation 8,314,033 8,109,964 (204,069)
All Other Revenues
Total Revenues
Personal Services
Retirement/Insurance Benefits
Purchased Services
Supplies and Materials
Capital Outlay
Debt Service:
Reason
Split with Restricted
1,532,332 1,468,332 (64,000)
67,263,351 67,089,086 (174,265)
-
Without Borrowing Included
28,997,574 29,197,574 200,000
11,670,361 11,544,685 (125,676)
More retirees than predicted
22,716,580 23,841,580 1,125,000 More students to charter/community schools
1,016,870 1,176,343
1,600,000 1,600,000
219,701 237,975
159,473
-
18,274
Other Objects
Total Expenses
705,227 705,227 -
66,926,313 68,303,384 1,377,071
Cash Balance 2,760,258 2,072,921 (687,337)

Bottom Line
Cash
Balance
2014 2015 2016
2,072,921 2,696,080 2,430,238
2017 2018
389,825 (3,562,400)
Important Puzzle Pieces:
1. In negotiations with MTA; no increases to base salary included in this forecast
2. Tomorrow’s election; if fail – will need to increase expenses for maintenance/repairs
3. Programmatic changes – know we need to do something different with alternative education due to Union Day closing – but decisions have not yet been finalized

Questions