Defiance City School Five-Year Financial Forecast May 2020 - PowerPoint PPT Presentation

Defiance City School Five-Year Financial Forecast May 2020

REVENUES Taxes State Aid Other Property Class I/Class II Unrestricted Other Revenue Public Utility PP Restricted Other Sources Income Tax 2020 Property Tax Income Tax 7% Allocation PUPP 3% Unres Aid 57% Real Estate 19% 2020 All Other Rev 9% Res Aid Prop Tax 2% Alloc 3%

TAXES Property Tax Class I Residential and Agricultural 1.01 ➢ Residential Real Estate is 73.71% of Total Valuation. Residential ➢ Agricultural Real Estate is 3.76% of 73.71% Total Valuation. ➢ CLASS I Real Estate is 77.47% of Total Valuation. Agricultural 3.76% Class I changes when Update or Reappraisal occurs. ➢ 2017 – Reappraisal ➢ 2014 – Triennial Update ➢ Ag: $576,120 (-5.4%) ➢ Ag: $2,823,930 (37.3% CAUV ) ➢ Res:$11,920,430 (6.6%) ➢ Res:$403,760 (.2%) ➢ 2023 - Reappraisal ➢ 2020 – Triennial Update ➢ Ag: -$250,000 (2.6%) ➢ Ag: -$500,000 (-5%) ➢ Res: $5,000,000 (2.5%) ➢ Res:$1,000,000 (.5%) NOTE: If recession occurs in future years, property taxes could be affected by as much as a 3-10% decrease in valuation (that is not modeled in this forecast).

TAXES Property Tax Class II Commercial 1.01 ➢ Real Estate is 15.78% of ➢ 2014 – Triennial Update ➢ 2020 – Triennial Update total Valuation. ➢ -$158,560 ➢ $50,000 ➢ 2014 New Construction ➢ 2014 New Construction ➢ $620,100 ➢ $250,000 ➢ 2023 - Reappraisal ➢ 2017 – Reappraisal ➢ $1,987,210 ➢ $500,000 ➢ 2014 New Construction ➢ 2014 New Construction ➢ $470,700 ➢ $700,000 What are Effective Class I Class II Class at the District collection TY Millage: Fixed Rate Fixed Rate Floor? Fixed Sum rates? 2019 20.05 23.04 6.17 Class I rates 2020 20.01 23.02 6.18 are at the 2021 20-mill floor. 20.02 23.00 6.22 2022 20.00 22.98 Floor 0.00 2023 20.00 22.76 Floor 0.00

TAXES Property Tax Class I/II Real Estate 1.01 Financial Impact Summary FY 2020 – FY 2021 FY 2022 Decrease of $50,360 from October Decrease of $379,859 from October Decrease of $170,794 from October projections for line 1.01 RE and projections for line 1.01 RE and $17,672 for projections for line 1.01 RE and $11,416 for line 1.02 PUPP . line 1.02 PUPP . $19,797 for line 1.02 PUPP . Why? Why? Why? Delinquencies collected ➢ ➢ Reduction in Tax Year 2020 (Payable ➢ Reduction in Tax Year decrease $50,000(August 2021) Valuation 2021 (Payable 2022) 2020 2 nd half collection) 2021 collection rate reduced from Valuation ➢ Spring 1 st Half collections ➢ 98% TO 95% (last recession was ➢ Increases Delinquencies are recorded as actual between 3-10% - this forecast collects to catch up for contains 3% reduction in collection previous years decrease rates) Delinquencies collected decrease ➢ (May 2021/August 2021) $7,000,000 Collection Year Revenue Estimates by Class Based on Modeled Collection Rate $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PUPP $632,010 $692,145 $701,019 $736,440 $747,114 $779,794 $810,564 $826,437 $841,153 $870,614 Class II $1,144,418 $1,094,262 $1,093,849 $1,082,724 $1,119,844 $1,121,875 $1,055,811 $1,139,197 $1,146,532 $1,163,182 Class I $4,157,985 $4,196,006 $4,119,910 $4,368,435 $4,372,719 $4,408,582 $4,253,295 $4,434,391 $4,439,631 $4,527,280

TAXES Income Tax 1.03 Income taxes are broken into 4 parts: Historically (2015-2019): ➢ Withholding (appx $1,450,000/FY) ➢ Withholding 3.09% ➢ Estimated payments (appx $88,000/FY) ➢ Estimated payments 6.84% ➢ Payments with Returns (appx $543,000/FY) ➢ Payments with Returns -1.35% ➢ Refunds (appx $167,000/FY) ➢ Refunds 5.48% Collected 4 times a year Total collections FY20: $1,977,510 Forecast FY2021-2024: Income Tax Income Tax Actual and Projected $2,500,000 ➢ Expected withholding (74% of total collections) to decrease an $2,000,000 estimated 9.2% in July 2020 (based on OBM projections). $1,500,000 October 2020 also decreases to 2%. $1,000,000 $500,000 ➢ FY22-24 rates begin to move back to normal. $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

TAXES Property Tax Allocation 1.05 Percentage of Total Revenue: 3.3% Actual Projected 2019 2020 2021 2022 2023 2024 Homestead and Projections are not Based Upon Previous Fiscal Year Rollback remain Rollback and Homestead 10% Rollback Total Dollars 536,428 534,392 538,365 539,939 541,008 546,671 constant except 2.5% Residential Rollback Total Dollars 97,056 95,916 96,630 96,912 97,104 98,120 for TPP Phase out. Homestead Total Dollars 286,792 272,435 274,460 275,262 275,808 278,695 Adjustments (3,075) - - - - - FY 2020 was the Renewal Levy Reservation - - - (107,996) (215,865) last phase out year for TPP State Total Rollback and Homestead 917,200 902,743 909,455 912,113 805,924 707,622 reimbursement for Fixed Rate TPP Fixed-Rate Direct Reimbursement Revenue 161,440 << Annual Phase-Out of 5/8 Mill levies. $ - - - - - - - FY17 TPP Reimb: Current Exp Fixed-Rate TPP Reimb TPP for Reservation - - - - - - FY 2022 is the last TPP Elimination Due to Non Renewal - - - - - - phase out year for TPP State TPP for Above the Line - - - - - - reimbursement TPP Fixed-Sum Emergency Levy Reimbursement Rev Calendar Yr 42,806 28,538 14,269 - - - for Fixed Sum Emergency and Substitute Levy TPP Reimbursement - Phased Out 49,941 35,672 21,403 7,134 - - (Emergency) TPP for Reservation - - - - - - Levies. TPP Elimination Due to Non Renewal - - - - - - [Memo] Loss in Fixed Sum TPP Phase-Out Starting in FY 2018 (21,403) (35,672) (49,941) (64,210) (71,344) - FY23 TPP state TPP for Above the Line 49,941 35,672 21,403 7,134 - - Hold Harmless Adjustment for Current Cash Flow Trend: 16,402 Clause will be Total 983,543 938,415 930,858 919,247 805,924 707,622 FY 2019 Actual> 983,543 finished. Dollar Change over Prior year (11,051) (45,128) (7,557) (11,611) (113,323) (98,302) Percentage Change over Prior Year -1.11% -4.59% -0.81% -1.25% -12.33% -12.20%

STATE AIDE Unrestricted/Restricted Aide 1.035/1.04/1.045 Unrestricted Aide: Calculated using Enrollment, Base Aide from designated year, Special Education Transportation (t-reports), Preschool Funding ($4000/Special Needs Student), Student Wellness (moved to separate fund) and Casino Funding. Enrollment: District Educated ADM ➢ Actual students in chairs being educated at DCS: 2402 2,435.00 2,430.00 2,425.00 ➢ Current ADM Formula Funding Enrollment: 2,420.00 Total ADM Formula: ➢ 2,415.00 2649.13 Starting ADM ➢ 2,410.00 ➢ +222.19 OE In 2,405.00 ➢ -35.53 Community School 2,400.00 ➢ -347 OE Out 2,395.00 ➢ -4.93 Autism Scholarship 2,390.00 ➢ -10.93 JP Scholarship 2,385.00 ➢ -72.17 JVS 2,380.00 201620172018 2019 2020 2021 2022 2023 2024 ➢ TOTAL: 2400.76 *2017/2018 spike due to ECOT closing and online students returning to DCS then leaving in 2018 and2019.

STATE AIDE Unrestricted/Rest Continued Base Aide: Special Education: FY2020 - $359,293 Reduction in state aid FY2020-2024 - Supplemental for Special Needs Bus by Ohio Governor. riders based on T-report submission. FY2021 – Estimated 10% Reduction in Base Preschool: State Aid FY2021-2024 - $4000/special needs student enrolled in PS – decrease of $32,000 for reduction of class. FY2022 – Estimated 6.4% Reduction in Base State Aide (not an addition to Casino Funding: previous years cuts). FY21 Based on Enrollment and casino revenue, 40% Reduction for FY 21 for closure (reduction FY2023-25 Flatlined State Aide (FY2022). w/state aid adjustment). Unrestricted and Restricted Revenue 2019 2020 2021 2022 2023 2024 2,401 2,401 2,401 2,400 2,400 2,404 District Educated ADM $16,761,840 $16,744,199 $16,744,199 $16,744,199 $16,744,199 $16,744,199 Base Aid $99,969 $124,920 $124,920 $124,920 $124,920 $124,920 Spec Ed. Transp. Pre-School $420,899 $438,786 $406,786 $406,786 $406,786 $406,786 Casino Revenue $136,257 $124,839 $124,833 $124,800 $124,819 $124,994 HB 166 Additional Revenue $541,213 $781,665 $0 $0 $0 Student Wellness $0 $0 $0 $0 $0 upplemental Student Well. $0 $0 $0 $0 $0 Growing District Aid $56,357 -$359,293 -$1,868,173 -$1,071,629 -$1,071,629 -$1,071,629 Posting & CFO Adjustments $16,953,508 $16,577,051 $15,036,163 $15,832,675 $15,832,694 $15,832,869 Total Revenue $33,781 -$376,457 -$1,540,887 $796,512 $19 $175 YOY Change 0.2% -2.2% -9.3% 5.3% 0.0% 0.0% YOY % Change

OTHER Other Revenue 1.06 Tuition Related Revenue ➢ Tuition: 2,500,000 2,000,000 ➢ Open Enrollment 1,500,000 ➢ Excess Costs 1,000,000 ➢ Student Tuition ➢ Misc. Payments 500,000 (i.e. Summer School ) 0 2018 2019 2020 2021 2022 2023 2024 1223 - SF14H/Excess Cost Revenue 1227 - Open Enrollment ➢ Fee Based: Fee Based Revenue ➢ 1700 Class Materials ➢ 1810 Rentals 140,000 ➢ 1820 Donations 120,000 ➢ 1830/40 Services 100,000 ➢ 1860/1890 80,000 Fines/Other Misc. 60,000 40,000 ➢ Other Sources 20,000 ➢ Transfers/In/Out 0 2018 2019 2020 2021 2022 2023 2024 1700s 1810 1820 1830s & 1840s 1860 & 1890