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Downingtown Area School DistrictBudgetFiscal Year 2020-2021540 Trestle PlaceDowningtown, Pennsylvania 19335Chester County610-269-8460www.dasd.org

Downingtown Area School DistrictBudget 2020-2021Table of ContentsExecutive Summary .1Board of School Directors .2Administration .3Buildings and Administrators .4Consultants and Advisors .5Executive Summary of the 2020-2021 Budget .6Organizational Section .22The School Entity .23Financial Structure and Reporting .30Classification and Presentation of Revenue and Expenditures .32Significant Laws Affecting Budget and Fiscal Administration .43Significant Policies and Procedures Affecting Budget and Fiscal Administration .46Organization Chart .50Mission Statement .51Comprehensive Education Plan .51Major Goals and Objectives.51Budget Development Process .52Financial Section .59Summary of Funds .60Summary of Funds – Forecast .61Summary of Governmental Funds .62Summary of Governmental Funds - Forecast .63General Fund65Summary of General Fund with Prior Years Comparison .66General Fund Forecast .68Detail of General Fund Revenue .70General Fund Expenditures by Object .71General Fund Expenditures by Function and Object .72Significant Revenue and Expenditure Categories Discussion, Analysis, and Trends .76Capital Projects Fund81Capital Projects Fund with Prior Years Comparison .82Capital Projects Fund Forecast .84Capital Expenditure Budget .85Capital Plan Detail .86i

Downingtown Area School DistrictBudget 2020-2021Table of ContentsDebt Service Fund89Debt Service Fund with Prior Years Comparison .90Debt Service Fund Forecast .91Proprietary Fund – Food Service Fund92Proprietary Fund – Food Service Fund with Prior Years Comparison .93Proprietary Fund – Food Service Fund Forecast .94Legal Debt Limit and Borrowing Capacity .95Schedule of Outstanding Debt .96Debt Amortization (Debt Service) Schedule .97Informational Section.99Assessed and Market Value of Taxable Property .100Real Estate Tax Rate and Collection Data .101Analysis of Property Tax Burden .102Chester County School District Property Tax Comparison .103District’s Ten Largest Real Estate Taxpayers .104Detail of District Tax Revenue .105Enrollment Forecasting Methodology and Techniques .106Enrollment History and Projections.107School Building Information .108Personnel Resource Allocation.109Debt Amortization (Debt Service) Schedule .111Performance Measurements .113Students Eligible for Free and Reduced Meals.123Glossary .124ii

This Meritorious Budget Award is presented toDOWNINGTOWN AREASCHOOL DISTRICTfor excellence in the preparation and issuance of its budgetfor the Fiscal Year 2019–2020.The budget adheres to the principles and standardsof ASBO International’s Meritorious Budget Award criteria.Claire Hertz, SFOPresidentDavid J. LewisExecutive Directoriii

Downingtown Area School DistrictExecutive SummaryFiscal Year 2020-2021 Budget1

Downingtown Area School DistrictBudget 2020-2021Downingtown Area School DistrictBoard of School DirectorsJane Bertone . PresidentRebecca Britton . Vice-PresidentAudrey Blust . MemberCaryn McCleary Ghrayeb . MemberRachel Gibson . MemberJoyce Houghton . MemberDavid Kring. MemberDr. Linda G. MacNeal . MemberLee Wisdom . MemberVirginia Warihay (non-voting member) . SecretaryDavid Matyas (non-voting member) . Treasurer2

Downingtown Area School DistrictBudget 2020-2021Downingtown Area School DistrictAdministration Senior Leadership TeamDr. Emilie M. Lonardi . SuperintendentDr. Louis Chance . Assistant SuperintendentDr. Robert Reed . Assistant SuperintendentDavid Matyas . Business ManagerMeghan Dennis . Director of Pupil ServicesDawna Hankins . Director of Human ResourcesDale Lauver .Director of FacilitiesDr. Gary J. Mattei . Director of TechnologyJennifer Shealy . Director of Communications3

Downingtown Area School DistrictBudget 2020-2021Downingtown Area School DistrictBuildings and AdministratorsElementary SchoolsBeaver Creek Elementary School601 Pennsylvania AvenueDowningtown, PA 19335Principal: Dr. Dawn LawlessBradford Heights Elementary School1330 Romig RoadDowningtown, PA 19335Principal: Ilana ShipeBrandywine-Wallace Elementary School435 Dilworth RoadDowningtown, PA 19335Principal: Dr. Shawn WrightEast Ward Elementary School435 Washington AvenueDowningtown, PA 19335Principal: Dr. Nick ArgonishLionville Elementary School526 W. Uwchlan AvenueDowningtown, PA 19335Principal: Shelda PerryPickering Valley Elementary School121 Byers RoadChester Springs, PA 19425Principal: Travis OrthShamona Creek Elementary School501 Dorlans Mill RoadDowningtown, PA 19335Principal: Dr. Melanie SusiUwchlan Hills Elementary School50 Peck RoadDowningtown, PA 19335Principal: Bob GieringWest Bradford Elementary School1475 Broad Run RoadDowningtown, PA 19335Principal: Deborah KearneySprington Manor Elementary School400 Fairview Rd.Glenmoore, PA 19343Principal: Stephan PronMarsh Creek 6th Grade Center489 Dorlans Mill Rd.Downingtown, PA 19335Principal: Tom MulveySecondary SchoolsDowningtown Middle School115 Rock Raymond RoadDowningtown, PA 19335Principal: Dr. Nick IndeglioLionville Middle School550 W. Uwchlan AvenueDowningtown, PA 19335Principal: Dr. Jonathan RossDowningtown High SchoolWest Campus445 Manor AvenueDowningtown, PA 19335Principal: Dr. Kurt BarkerDowningtown High SchoolEast Campus50 Devon DriveExton, PA 19341Principal: Paul E. Hurley, IIIDowningtown STEM Academy335 Manor AvenueDowningtown, PA 19335Headmaster: Art Campbell4

Downingtown Area School DistrictBudget 2020-2021Downingtown Area School DistrictConsultants and AdvisorsIndependent AuditorsBBD, LLP1835 Market StreetPhiladelphia, PA 19103Legal CounselLamb McErlane P.C.24 East Market Street, PO Box 565West Chester, PA 19381(General Counsel)Financial AdvisorPublic Financial ManagementOne Keystone Plaza, Suite 300North Front & Market StreetsHarrisburg, PA 171015

Downingtown Area School DistrictBudget 2020-2021Executive Summary of the 2020-2021 BudgetThe following is an executive summary of the District’s 2020-2021 budget. It is intendedto provide a high level presentation and comprehensive summary of the informationincluded throughout the full document.Budget PresentationThe Downingtown Area School District strategically budgets an annual spending planthat provides quality educational programs for all students while carefully managing theDistrict’s resources. The development, review, and consideration of the 2020-2021budget was completed with a detailed review of revenue and expenditure items toensure the necessary resources are available and allocated to meet the needs of theDistrict while minimizing tax increases for the District’s taxpayers.The information included in this document is structured to meet the requirements of theMeritorious Budget Award (MBA) of the Association of School Business OfficialsInternational (ASBO). The MBA is the highest form of recognition in budgeting forschool entities. Its attainment represents a significant accomplishment by a schoolentity and its management. The District has received the award since 2005-2006, andwe believe this 2020-2021 budget document also meets the requirements to receive theMBA. However, the most important focus in the presentation of the budget data is tocommunicate to the community and other stakeholders the District’s financial plan tosupport its educational programs and services.Impact of COVID-19, the Economy, and Government Funding on the 2020-2021BudgetThe development of the 2020-2021 budget took into consideration the anticipatedeffects of the COVID-19 pandemic on the economy. This resulted in overall real estateand earned income tax revenues to be budgeted lower than the prior year, as thepandemic is expected to have a negative impact on the economy. The District will nothave a tax rate increase for 2020-2021. Most state funding is budgeted to remain aboutthe same as prior year with the exception of the transportation subsidy, as that is basedon reimbursement of the 2019-2020 transportation cost which was significantly reduceddue to school being closed from mid-March to the end of the 2019-2020 school yeardue to the pandemic. An increase in state funding is seen in the subsidy for retirement6

Downingtown Area School DistrictBudget 2020-2021contributions, which is a function of the increase in the salary budget due to normalwage increases and additional needed positions. The District has budgeted about 1million for grant funding it will receive from the Federal CARES Act to help fundpandemic related expenses. On the expense side of the budget, the District reduceddepartment budgets by about 4 million and moved that amount into a contingencyaccount within the budget. The District will monitor actual revenue during the year andallow access to spend these contingency funds if sufficient revenue funding is available.Mission Statement, Comprehensive Education Plan, Goals and ObjectivesMission StatementProud of our tradition of excellence, the mission of the Downingtown Area SchoolDistrict is to educate all students to meet the rigorous challenges of a global society.Comprehensive Education PlanThe District’s has two goals for its comprehensive education plan.Goal #1: We will ensure a system is in place within the district that promotes, enhances,and sustains a shared vision of high expectations for all students through theeasy access of assessment data to adjust and modify instruction to meetindividual student needs.Goal #2: We will implement a comprehensive district-wide-system that will create apositive school climate by ensuring students who are academically and/orsocially/emotionally/behaviorally at risk are identified early and are supportedby a process that provides interventions based upon student needs andincludes procedures for monitoring effectiveness.Board of Directors Goals for the DistrictThe following are the Board of School Directors 2020-2021 goals for the District. Complete the Uwchlan Hills and STEM school construction projects on time. Analyze the latest student growth data and enrollment projections. Make long term facilities plans for student enrollment needs.The Board has developed objectives and measures of success in achieving their goals.The budget represents how the financial and human resources are allocated to supporteducational programs and services defined by the District’s mission, comprehensiveeducation plan goals, and Board goals. Preparing the annual budget requires decisionsthat represent a delicate balance between the educational needs of students and theability of the community to support the schools.7

Downingtown Area School DistrictBudget 2020-2021Budget Process and Allocation of ResourcesThe budget process is comprised of five phases – planning, preparation, adoption,implementation and evaluation. The process is driven by two objectives - to provideevery child in the District with the best possible educational opportunities and tomaximize the use of available resources. Within this framework, the Board attempts tobalance the educational needs of students and the resources available to the Districtfrom local, state, and federal sources. The timeline for the beginning of the annualbudget process starts in September so a preliminary budget can be adopted in Februaryif necessary. This preliminary budget serves to identify any potential tax increase overa state mandated limit (2.6% for 2020-2021) that will need to be addressed throughexceptions or voter approval before final adoption of the budget in June. If the Board ofDirectors adopts a resolution that it will not need to raise taxes above the statemandated limit, it can forgo the adoption of the preliminary budget in February.PlanningFor the fiscal year that begins July 1, the planning process for budgeting starts aboutten months prior in September of the previous year when the Administration develops abudget timeline that includes all of the important activities in the budgeting process.The timeline represents the guidelines for the preparation and adoption of the SchoolDistrict’s annual budget. Below is a summary of the timeline. September-December – Budget meetings held with each department head toreview all budget line items; Revenue budget developed January-February – Preliminary budget adopted or resolution adopted March-May – Budget refined and proposed budget adopted June – Final budget adoptedPreparationThe preparation of the budget is the process of defining service levels. Primary inputsinto this process are identifying course offerings in the educational program andprojecting student enrollment. With service levels defined, the District allocatesresources to meet these levels by developing staffing allocations; estimatingexpenditure needs to support programs and services; and projecting availablerevenues.AdoptionFor the 2020-2021 budget, the District adopted a resolution that it would not raise taxesabove the state mandated limit (Act 1 index) of 2.6%. This resolution was adopted inDecember 2019 and eliminated the need to adopt the preliminary budget for purposesof determining a tax rate increase. The budget continued to be reviewed and adjustedthrough June, and was adopted at the June 2020 Board meeting.ImplementationImplementation of the budget is accomplished through the budget administration andmanagement process. This involves regulating expenditures during the fiscal year toensure that they do not exceed authorized amounts and that they are used for intended,8

Downingtown Area School DistrictBudget 2020-2021proper, and legal purposes. This is done by monitoring expenditure account balances,monitoring purchases through a purchase order approval system, tracking revenuereceipts, making corrections in expenditure allocations to reflect changes in costs,service levels, or plans; and reporting to the Board and public on fiscal operations.EvaluationThe District maintains a budgetary accounting and control software information systemthat provides reports to assist Board Members, the Business Office staff, andresponsibility cost center managers in evaluating the implementation of the budget. Theaccounting information system also provides detail transactional information to allow forauditing of expenditure and revenue activity compared to the budget. Information is alsoproduced that allows for evaluating the overall financial condition of the District.Student EnrollmentA primary input into the budget process is the projecting of student enrollment. Below isa chart that shows the District’s enrollment trend.Enrollment History and tual2015201620162017Budget201720182018- 20192019 For the budget year 2020-2021 the student enrollment is 13,252. This is an increase of184 students over the 2019-2020 enrollment. This continues the trend of increasingenrollment over the past several years. Future year enrollment is estimated to continueto grow as residential development continues in the District and families move into theDistrict to be able to attend Downingtown schools. The District’s special educationstudent enrollment continues to grow due to the District’s strong support of specialeducation students and their needs. This has resulted in families of special educationstudents moving into the District specifically for the District’s special educationprograms.9

Downingtown Area School DistrictBudget 2020-2021Personnel ResourcesThe 2020-2021 budget includes the addition of about 16 classroom teachers to manageenrollment growth and class size. Two psychologists were added at the high schools toaddress mental health issues for students. Support staff positions increased by about33 full time equivalents due to increased need for classroom aides, clerical staff andadditional computer technicians.Summary of Budgets for All FundsThe following schedule presents a comparison of the total budget revenue andexpenditures in the current and prior year for each of the District’s funds. It representsthe financial resources budgeted to be available from local, state, and federal sources,as well as fund balance, to support the District’s programs and services. The GeneralFund, Capital Fund, and Debt Service Fund are Governmental Funds and theProprietary Food Service Fund is a non-governmental fund.Summary of Governmental Funds2020-2021Budget2019-2020Budget 224,739,9461,100,000250,000 226,292,8122,491,640523,332Total Revenue226,089,946229,307,784Expenditures:General FundCapital Projects FundDebt Service 8,0676,596,136Total enues:General FundCapital Projects FundDebt Service FundOther Financing 6164,462,088196,226,379 144,139,152 164,462,088Net Change in Fund Bal. -Orig. BudgetNet Change in Fund Bal.-Adj. for Est. ActuFund Balance July 1Fund Balance June 30Proprietary Fund - Food Service2020-2021BudgetRevenuesExpendituresNet Change in Fund BalanceFund Balance July 1Fund Balance June 30 -2020Budget 3,399,0523,384,24314,8091,935,5941,950,403

Downingtown Area School DistrictBudget 2020-2021The summary information above is discussed below by analyzing the trends and detailsof revenues and expenditures for each fund separately.General Fund Discussion and AnalysisGeneral Fund RevenueThe General Fund budget of the School District is funded from local, state and federalsources of revenue. The primary funding source for District operated programs andservices is local revenue, which accounts for 75.5% of the 224,739,946 total budgetedGeneral Fund revenue for the 2020-2021 fiscal year. Other revenue to fund operatingexpenditures is primarily derived from state subsidies. Federal sources are minimal andare derived primarily from federal grant money.Revenue Sources as a Percent of TotalRevenueRevenue Sources2020-2021BudgetLocal StateFederalTotal % 75.5%76.5%80.0%173,023,520224,739,946 tate2020-2021 BudgetFederal2019-2020 BudgetLocal SourcesThe largest portion of local revenue (83%) is derived from current taxes on real estateproperty. Current real estate tax revenue is budgeted to be about the same as the prioryear. Despite an increase in the assessed taxable value of property, the Districtanticipates a lower collection rate due to the pandemic, that will offset the revenue fromthe assessment growth. For 2020-2021 the assessed real estate property value is 5.63 billion, a 65 million (1.2%) increase over the 2019-2020 assessed value. Theassessed property value is the tax base on which the District levies a real estate tax.As shown in the chart below, growth in the tax base has been in the 0.9% to 1.5% rangesince 2016-2017. In the five years prior to 2016-2017, which includes economicrecession years, the District averaged 0.8% assessment growth each year.11

Downingtown Area School DistrictBudget 2020-2021Assessed Real Estate Property Values2.0% 5,650,000,000 5,600,000,000 5,550,000,0001.5% 5,500,000,000 5,450,000,0001.0% 5,400,000,000 5,350,000,0000.5% 5,300,000,000 5,250,000,000 2019‐2020Assessed Value2020‐2021Percent IncreaseResidential property accounts for about 80% of the total tax base with commercial,industrial, and agricultural property accounting for the remaining 20%. The real estatetax rate required to fund the District’s programs and services in 2020-2021 is 27.182mills which is unchanged from 2019-2020. The District is pleased to not have a taxincrease for its taxpayers in 2020-2021, the eighth year in a row. The chart belowshows a five-year history of the District’s tax rate.History of Real Estate Tax Rate .00%0.00%20.00015.00010.0005.0000.000% IncreaseFor 2020-2021, the property taxes due on the median assessed property value in theDistrict is 5,029. This reflects no increase from 2019-2020 based on a consistentaverage assessed property value of 185,000. To help offset the property tax burdenon taxpayers, the Pennsylvania Act 1 taxpayer relief law of 2006 provides qualifiedhomesteads a tax credit that is funded by state gaming revenue. For 2020-2021 theestimated amount of tax credit is 213 per homestead. The District is proud to continueto fund nationally recognized top performing schools without needing to raise taxes12

Downingtown Area School DistrictBudget 2020-2021since 2012-2013. The District has been able to achieve this with prudent financialmanagement, growth in other revenue sources, and controlling unnecessary spending.Revenue from local sources other than current real estate taxes is primarily derivedfrom earned income taxes, real estate transfer taxes, interim real estate taxes,delinquent real estate taxes, and interest income. The total of all other local sources ofrevenue are budgeted about 3.2 million lower than the 2019-2020 budget due to theprojected negative impact the pandemic will have on the economy and the relatedadverse effect on generating revenue from these sources.State SourcesPennsylvania school districts have experienced a substantial shift from the state level tothe local level to provide funding for school district budgets. The percentage of statefunding in relation to total revenue sources has declined significantly for decades. If theDistrict received the same percentage of total revenue from the state in 2020-2021 as itdid for example in 1995-1996 (27.2%), state sources of revenue would be about 8.5million higher in the 2020-2021 budget. This additional revenue could allow the Districtto expand programs and provide for additional resources that would help studentachievement. The additional funding would also reduce the need to rely more heavilyon taxpayers for funding.The 0.9% increase in state revenue in the 2020-2021 budget compared to the 20192020 budget is primarily caused by the 0.9 million increase in the contribution to thePublic School Employees Retirement System (PSERS). This increase is due to theincrease in the District’s wage base and the contribution rate of which the statereimburses half. The 2020-2021 contribution rate is 34.51% of employee wagescompared to 34.29% in 2019-2020. The rate is set by the state and contributions arerequired for all Pennsylvania school districts. Offsetting this increase is a decrease tothe transportation subsidy, as that is based on reimbursement of the 2019-2020transportation cost which was significantly reduced due to school being closed frommid-March to the end of the 2019-2020 school year due to the pandemic.Federal SourcesFederal revenue in the 2020-2021 budget continues to be minimal. However, theDistrict has budgeted an additional 1 million for grant funding it will receive from theFederal CARES Act to help fund pandemic related expenses. Other federal fundingincludes Title I, II, and III grant funding, and funding for the Medical ACCESS programfor special need students’ expenditure reimbursements.13

Downingtown Area School DistrictBudget 2020-2021General Fund ExpendituresFor the 2020-2021 fiscal year, total expenditures in the General Fund are budgeted toincrease from 220,629,805 to 226,292,812, an increase of 5,663,007. The followingtable details this increase by object expenditure category.General FundExpenditures &Other Uses of Funds (object)Salaries (100)Employee Benefits (200)Salary and BenefitsBudget2020-2021 Professional Services (300)Purchased Property Services(400)Other Purchased Services(500)Purchased & Professional 20 99,174,17661,321,135160,495,311 Change ,4710.8%0.1%-0.1%0.2%Supplies (600)7,316,1217,551,503(235,382)-3.1%Property .0%Other Objects & Contingency(800)Debt Service & Transfers (900)Other Objects and Uses of Funds(800/900)Total 230,812,460 Expenditure AnalysisSalaries increased from 2019-2020 to 2020-2021 due to employee wage increases andnew staff. The small increase in employee benefit costs is primarily due to an increasein the PSERS pension employer contributions offset by a decrease in the budget forhealthcare claims to reflect current projections.Overall, Purchased and Professional Services expenditures are about the same from2019-2020 to 2020-2021. Most of the increases in these accounts were moved toContingency accounts in an effort to restrict spending in 2020-2021 due to theanticipated reduction in revenue caused by the pandemic.The Supplies category includes all consumable material items that are expendable, andalso includes softw

Elementary Schools Beaver Creek Elementary School Bradford Heights Elementary School 601 Pennsylvania Avenue 1330 Romig Road Downingtown, PA 19335 Downingtown, PA 19335 Principal: Dr. Dawn Lawless Principal: Ilana Shipe Brandywine-Wallace Elementary Sch