STREETSBORO CITY SCHOOLS FIVE YEAR FORECAST OCTOBER

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					    STREETSBORO CITY SCHOOLS
       FIVE-YEAR FORECAST
          OCTOBER 2009
 




                          

                 

                 
                                                                         Streetsboro City Schools
                                                                                      Portage County
                                                         Schedule of Revenues, Expenditures and Changes in Fund Balances
                                                          For the Fiscal Years Ended June 30, 2007, 2008 and 2009 Actual;
                                                            Forecasted Fiscal Years Ending June 30, 2010 Through 2014
                                                                                Actual                                                            Forecasted
                                                                  Fiscal Year   Fiscal Year   Fiscal Year   Average   Fiscal Year   Fiscal Year    Fiscal Year   Fiscal Year       Fiscal Year
                                                                     2007          2008          2009       Change       2010          2011           2012          2013              2014
         Revenues
1.010    General Property Tax (Real Estate)                       $10,244,340   $10,777,977   $11,232,759      4.7%   $11,235,693   $10,974,204    $10,553,909    $9,993,681        $9,425,049
1.020    Tangible Personal Property Tax                             2,481,610     1,820,336     1,398,951    -24.9%        55,415        25,000
1.035    Unrestricted State Grants-in-Aid                           4,069,505     4,107,521     4,100,371      0.4%     3,765,462     3,591,485      3,891,742     3,891,742         3,891,742
1.040    Restricted State Grants-in-Aid                                42,687         9,802        21,616     21.7%
1.045    Restricted Federal Grants-in-Aid - SFSF                                                                          255,703       350,257
1.050    Property Tax Allocation                                    2,214,538     2,962,052     3,701,017     29.4%     4,248,074     4,209,360      4,170,065     4,121,147         4,071,496
1.060    All Other Revenues                                           726,701       923,398       676,421      0.2%       625,308       626,220        626,220       626,220           626,220
1.070 Total Revenues                                              19,779,381    20,601,086    21,131,135       3.4%   20,185,655    19,776,526     19,241,936    18,632,790        18,014,507
         Other Financing Sources
2.010    Proceeds from Sale of Notes                                1,000,000                                           1,000,000
2.050    Advances-In                                                   11,073        23,060        40,358     91.6%       171,941       190,000         15,000        15,000            15,000
2.060    All Other Financing Sources                                    1,350           145                  -94.6%         4,000
2.070    Total Other Financing Sources                              1,012,423        23,205        40,358    -11.9%     1,175,941       190,000         15,000        15,000            15,000
2.080 Total Revenues and Other Financing Sources                  20,791,804    20,624,291    21,171,493      0.9%    21,361,596    19,966,526     19,256,936    18,647,790        18,029,507
      Expenditures
3.010 Personal Services                                            11,717,339    12,011,250    13,155,732      6.0%    13,150,577    13,388,811     14,592,750    15,189,276        15,791,577
3.020 Employees' Retirement/Insurance Benefits                      4,304,719     4,753,003     4,438,039      1.9%     4,534,860     4,533,811      4,987,021     5,385,638         5,821,329
3.030 Purchased Services                                            1,815,571     1,836,512     2,156,301      9.3%     2,031,426     2,120,733      2,161,545     2,252,644         2,349,371
3.040 Supplies and Materials                                          497,314       516,343       804,047     29.8%       601,720       538,620        543,620       548,870           554,383
3.050 Capital Outlay                                                  424,877       330,455       247,755    -23.6%
      Debt Service:
4.020  Principal-Notes                                              1,000,000                                           1,000,000
4.060  Interest and Fiscal Charges                                      6,898                                              12,500
4.300 Other Objects                                                   499,428       737,529       712,665     22.2%       515,465       522,810        583,188       593,109           603,330
4.500 Total Expenditures                                          20,266,146    20,185,092    21,514,539      3.1%    21,846,548    21,104,785     22,868,124    23,969,537        25,119,990
         Other Financing Uses
5.010    Operating Transfers-Out                                                      2,500        38,345                  40,000        40,000         40,000        40,000            40,000
5.020    Advances-Out                                                  23,060        40,358       171,942    200.5%       190,000        15,000         15,000        15,000            15,000
5.030    All Other Financing Uses
5.040    Total Other Financing Uses                                    23,060        42,858       210,287    238.3%       230,000        55,000         55,000        55,000            55,000
5.050 Total Expenditures and Other Financing Uses                 20,289,206    20,227,950    21,724,826      3.5%    22,076,548    21,159,785     22,923,124    24,024,537        25,174,990

6.010 Excess of Revenues and Other Financing Sources over
      (under) Expenditures and Other Financing Uses                  502,598       396,341       553,333- -130.4%        714,952-    1,193,259-     3,666,188-    5,376,747-        7,145,483-

7.010 Cash Balance July 1 - Excluding Proposed
      Renewal/Replacement and New Levies                             382,421       885,019     1,281,360     88.1%       728,027        13,075      1,180,184-    4,846,372-       10,223,119-

7.020 Cash Balance June 30                                           885,019     1,281,360       728,027      0.8%        13,075     1,180,184-     4,846,372-   10,223,119-       17,368,602-

8.010 Estimated Encumbrances June 30                                   16,143      262,147       154,013    741.3%

10.010 Fund Balance June 30 for Certification of Appropriations      868,876     1,019,213       574,014     -13.2%       13,075     1,180,184-     4,846,372-   10,223,119-       17,368,602-
       Revenue from Replacement/Renewal Levies
11.010 Income Tax - Renewal
11.020 Property Tax - Renewal or Replacement                                                                                            735,000      1,470,000     2,226,000         2,982,000

11.300 Cumulative Balance of Replacement/Renewal Levies                                                                                735,000      2,205,000     4,431,000         7,413,000

12.010 Fund Balance June 30 for Certification of Contracts,
       Salary Schedules and Other Obligations                        868,876     1,019,213       574,014     -13.2%       13,075       445,184-     2,641,372-    5,792,119-        9,955,602-

         Revenue from New Levies
13.010    Income Tax - New
13.020    Property Tax - New

13.030 Cumulative Balance of New Levies

15.010 Unreserved Fund Balance June 30                               868,876     1,019,213       574,014     -13.2%       13,075       445,184-     2,641,372-    5,792,119-        9,955,602-




                                                                                                                                                                               1
                        STREETSBORO CITY SCHOOLS
                     FIVE-YEAR FORECAST ASSUMPTIONS
                               OCTOBER 2009
 


Note: The school funding system in the State of Ohio is constantly changing. Accordingly, the
Streetsboro City School District’s Five-Year Forecast is based upon factors known as of this
date. The Treasurer/CFO will monitor the Five-Year Forecast and will update it as appropriate
for changes that may occur. Consistent with Ohio Administrative Code 3301-92-04, the Forecast
will be approved by the Streetsboro City School District Board of Education at least twice per
fiscal year in October and May and submitted to the Ohio Department of Education. The
following is a discussion of the pertinent assumptions used in the development of the attached
Five-Year Forecast of the Streetsboro City School District.



                               REVENUE ASSUMPTIONS
Line 1.010 – General Property Tax (Real Estate)

    •   Estimates of Fiscal Year 2010 real estate tax collections as provided by the Portage
        County Auditor are utilized are the base for these projections.
    •   A reduction is made to account for the anticipated decrease in tax collections that will
        result from the 2009 triennial update for Portage County. As of the date of this Forecast,
        revised valuation figures had not yet been provided by the Portage County Auditor;
        however, per discussions with the County, the District should expect a 5% decrease in
        valuations for Residential/Agricultural Property (Class I). The impact of this loss in
        valuation will be limited to inside (unvoted) millage (4.6 mills) as House Bill 920
        provides protection for outside (voted) millage. The anticipated loss of $60,000 is split
        evenly between Fiscal Year 2010 and Fiscal Year 2011 as taxes are collected on a
        calendar year basis and the decrease will commence on January 1, 2010.
    •   For Fiscal Year 2010, net delinquencies are assumed to increase by $200,000 due to the
        current state of the economy and the unemployment rate resulting in lower real estate tax
        collections.
    •   Fiscal Years 2011 – 2014 are reduced due to the expiration of levies on December 31,
        2009 (3.5 mills) and December 31, 2011 (3.6 mills). Collections upon these levies cease
        following the 2010 and 2012 calendar years. An offsetting increase for the replacement
        of these levies is included on Line 11.020.
    •   Fiscal Years 2011 – 2014 assume revenue growth due to new construction of 1.5%.




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                         STREETSBORO CITY SCHOOLS
                      FIVE-YEAR FORECAST ASSUMPTIONS
                                OCTOBER 2009
 
Line 1.020 – Tangible Personal Property Tax

    •   House Bill 66 incrementally phased out the tax on tangible personal property starting in
        2006. The Portage County Auditor’s Office indicated that the October 2009 and October
        2010 collections will represent the final collections of tangible personal property taxes
        other than those that may occur at a later date on outstanding delinquent taxes.
    •   Fiscal Year 2010 figure represents actual taxes received from the County in October
        2009.

Line 1.035 – Unrestricted State Grants in Aid

    •   The passage of House Bill 1 in July 2009 resulted in a decrease in basic State funding to
        the District of 1% (~$40,000) for Fiscal Year 2010 and an additional 2% (~$80,000) for
        Fiscal Year 2011.
    •   In order to minimize the decrease in base State funding amounts to the percentages
        mentioned above, the State of Ohio utilized Federal Stimulus dollars to compensate for
        State budget shortfalls. These Federal Stimulus dollars are referred to as State Fiscal
        Stabilization Funds and are reflected in this Forecast as Line 1.045 – Restricted Federal
        Grants-in-Aid – SFSF.
    •   For Fiscal Years 2010 and 2011, Special Education Transportation and Preschool Unit
        Funding are assumed to remain consistent with prior years and are forecasted to be
        $35,000 and $15,000, respectively, for each year. These sources of funding are
        considered to be outside of the base State funding amounts discussed above.
    •   For Fiscal Years 2012 – 2014, it is assumed that the State of Ohio will fund the District at
        Fiscal Year 2011 base funding levels. These projected amounts currently exclude Special
        Education Transportation and Preschool Unit funding.

Line 1.040 – Restricted State Grants in Aid

    •   Historically, this line item has primarily represented funds received from the State of
        Ohio for the purchase of buses. There is no provision made for this traditional source of
        funding in House Bill 1.

Line 1.045 – Restricted Federal Grants in Aid - SFSF

    •   Represent Federal Stimulus dollars received by the State of Ohio and passed through to
        Ohio Districts in the form of State Fiscal Stabilization Funds. The current year allocation
        from the State of Ohio represents ~6.5% of total basic State funding. Per discussion with
        the Ohio Department of Education Center for School Options and Finance, Fiscal Year
        2011 State Fiscal Stabilization Funds will amount to ~9% of total basic State funding.


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                         STREETSBORO CITY SCHOOLS
                      FIVE-YEAR FORECAST ASSUMPTIONS
                                OCTOBER 2009
 
Line 1.050 – Property Tax Allocation

    •   Includes entitlements and reimbursements from the State of Ohio related to property
        taxes such as the 10% and 2.5% tax reductions given to taxpayers for owner-occupied
        homes, the Homestead Exemption for qualifying senior and disabled citizens, Tangible
        Personal Property Tax Losses and Public Utility Tax Losses.
    •   10% and 2.5% rollback reimbursements are projected to amount to 6.6% of gross Real
        Estate taxes for the duration of the forecast.
    •   Homestead Exemption reimbursements are projected to amount to 1.3% of gross Real
        Estate taxes for the duration of the forecast.
    •   Tangible Personal Property Tax Loss reimbursements are assumed to remain consistent at
        $3,162,331 for the duration of the forecast.
    •   Public Utility Tax Loss reimbursements are assumed to remain consistent at $120,946 for
        the duration of the forecast.

Line 1.060 – All Other Revenues

    •   Includes income derived from tuition, investments, rentals, local company tax abatement
        incentive payments, City of Streetsboro income tax sharing agreement and other
        miscellaneous items.
    •   Investment income is not expected to be a significant source of current or future revenue
        given current interest rates and dwindling cash balances.
    •   Local company tax abatement incentive payments are projected to be $170,885 for Fiscal
        Year 2010 and then decrease to $114,720 and remain consistent for the duration of the
        forecast. The decrease is the result of the phase out of the tangible personal property tax.
    •   Revenue derived from the income tax sharing agreement with the City of Streetsboro is
        projected to increase as a result of the local income tax rate doubling from 1% to 2% in
        May 2009.
    •   All other items are projected to remain consistent.

Line 2.010 – Proceeds from Sale of Notes

    •   It is anticipated that the District will need to borrow $1,000,000 in the form of current tax
        revenue anticipation notes as a result of the shortfall in property tax collections utilized to
        service outstanding bonds and to cover general operating expenses during the month of
        January 2010. Tax advance payments from the County have historically commenced in
        late January or early February.




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                        STREETSBORO CITY SCHOOLS
                     FIVE-YEAR FORECAST ASSUMPTIONS
                               OCTOBER 2009
 
Line 2.050 – Advances - In

    •   Fiscal Year 2010 includes the return of the Fiscal Year 2009 Permanent Improvement
        Advance.
    •   Fiscal Year 2011 includes the return of the expected Fiscal Year 2010 Bond Retirement
        Advance in the amount of $175,000. There is also an assumption of an additional
        $15,000 in advances returned from other funds.

Line 2.060 – All Other Financing Sources

    •   Represents refunds of prior year expenditures.




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                         STREETSBORO CITY SCHOOLS
                      FIVE-YEAR FORECAST ASSUMPTIONS
                                OCTOBER 2009
 
                           EXPENDITURE ASSUMPTIONS
Line 3.010 – Personal Services

    •   Negotiated agreements are in place for both the Streetsboro Education Association (SEA)
        and the Streetsboro School Support Personnel Association (SSSPA) through June 30,
        2011.
    •   Both collective bargaining units received a 2.9% increase on base pay amounts for Fiscal
        Year 2010. Additionally, SSSPA received a 2.9% increase on base pay amounts for
        Fiscal Year 2011. According to the SEA agreement, a reopener will occur in the Spring
        of 2010 to discuss future salary amounts.
    •   Program reductions resulting from possible Levy failure in November 2009 are
        incorporated into the projections for Fiscal Year 2010 to avoid ending the year with a
        deficit balance in the General Fund at June 30, 2010. Further reductions are included for
        the first half of Fiscal Year 2011 to avoid a deficit balance in the General Fund at
        December 31, 2010.
    •   Fiscal Years 2012 – 2014 assume restoration to appropriate staffing levels.
    •   Savings from retirements during the Forecast period are not readily known and are not
        part of the projections.

Line 3.020 – Employees’ Retirement/Insurance Benefits

    •   Primarily consists of costs associated with Health Insurance, Public Retirement Systems,
        Medicare and Workers’ Compensation.
    •   The District is a member of the Portage Area Schools Consortium for Health Insurance.
    •   Health Insurance is projected to increase at a rate of 12% per year consistent with current
        healthcare trends.
    •   Most full-time employees pay a 10% and 7% employee contribution towards Health
        Insurance for family and single coverage, respectively.
    •   Retirement (14%), Medicare (1.45%) and Workers Compensation (~1%) costs are driven
        by forecasted salary/wage amounts multiplied by the respective benefit rate.
    •   Program reductions resulting from possible Levy failure in November 2009 are
        incorporated into the projections for Fiscal Year 2010 to avoid ending the year with a
        deficit balance in the General Fund at June 30, 2010. Further reductions are included for
        the first half of Fiscal Year 2011 to avoid a deficit balance in the General Fund at
        December 31, 2010.




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                        STREETSBORO CITY SCHOOLS
                     FIVE-YEAR FORECAST ASSUMPTIONS
                               OCTOBER 2009
 
Line 3.030 – Purchased Services

    •   Significant items within this category include computer services, legal fees, risk
        management insurance, utilities and tuition (i.e. open enrollment and community
        schools).
    •   Utilities are budgeted to increase between 3% and 7.5% annually.
    •   Tuition is budgeted to increase 5% annually.
    •   Most other budget line items are projected to remain flat.

Line 3.040 – Supplies and Materials

    •   Significant items within this category include educational supplies, textbooks, software,
        office supplies, maintenance supplies and fuel.
    •   Textbook costs for Fiscal Year 2010 are projected to be $175,000. For Fiscal Years 2011
        – 2014, textbooks are budgeted to be $75,000.
    •   Fuel is budgeted to increase 5% annually.
    •   Most other budget line items are projected to remain flat.

Line 3.050 – Capital Outlay

    •   There is currently no provision made for such expenditures in the Forecast.

Line 4.020 – Principal - Notes

    •   Represents repayment of current tax revenue anticipation notes. It is anticipated that the
        District will need to borrow $1,000,000 as a result of the shortfall in property tax
        collections utilized to service outstanding bonds and to cover general operating expenses
        during the month of January 2010. Tax advance payments from the County have
        historically commenced in late January or early February.

Line 4.060 – Interest and Fiscal Charges

    •   Assumes notes in the amount of $1,000,000 outstanding for 3 months at an interest rate
        of 5%.




                                                                                                7 
 
                        STREETSBORO CITY SCHOOLS
                     FIVE-YEAR FORECAST ASSUMPTIONS
                               OCTOBER 2009
 


Line 4.300 – Other Objects

    •   Significant items within this category include County Auditor and Treasurer’s Fees for
        the collection of property taxes, Portage County ESC contracted services deducted from
        basic State funding and annual financial audit fees.
    •   County Auditor and Treasurer’s Fees are budgeted to be $265,000 for Fiscal Year 2010,
        which is a decrease in excess of $50,000 from the prior year due to the phase out of the
        tangible personal property tax. Fiscal Years 2011 – 2014 are budgeted to increase 3%
        annually.
    •   Portage County ESC contracted service deductions are budgeted to be $150,000 for
        Fiscal Years 2010 and 2011, which is a decrease of ~$150,000 from Fiscal Year 2009.
        Fiscal Years 2012 – 2014 are budgeted at $200,000.
    •   Financial Audit fees are budgeted at $30,000 for Fiscal Year 2010 and are projected to
        increase 3% annually.

Line 5.010 – Operating Transfers Out

    •   Projected deficit from Food Service operations of $40,000 per year.

Line 5.020 – Operating Advances Out

    •   Fiscal Year 2010 Bond Retirement Advance in the amount of $175,000 due to shortfall in
        property tax collections.
    •   There is also an assumption of an additional $15,000 in advances to all other funds for
        Fiscal Year 2010 and beyond.




                   REVENUE FROM REPLACEMENT LEVIES
Line 11.020 – Property Tax Renewal Replacement

    •   Forecast assumes replacement of 3.5-mill levy during 2010 and 3.6-mill levy during
        2012.




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