Riverside Local School District Five Year Forecast Presentation May 22, 2018 Presented by: Gary A. Platko Educating Excellence!
Guidance ● The Ohio Department of Education (ODE) has developed a guide to assist teachers, administrators, Boards of Education, community members or other individuals in developing a general understanding of a school district’s five -year forecast. ● http://education.ohio.gov/getattachment/Topics/Fina nce-and-Funding/Five-Year-Forecast/How-to-Read-a- Five-Year-Forecast/HOW-TO-READ-A- FORECAST.pdf.aspx Educating Excellence!
General Information ● The five year forecast contains estimates based on the best information available at the time it is prepared ● The forecast is required to be updated and filed with ODE in October and May of each fiscal year ● The forecast contains three previous years of actual data (2015-2017) and five years of forecasted data (2018-2022) ● The numbers on the forecast only tell a small part of the story. The information contained in the forecast assumptions is an integral part of the forecast ● Riverside’s forecast includes the general fund and joint financing district fund Educating Excellence!
Major Changes from Previous Fiscal Year ● The district passed a 1.92 mill $38.5M bond issue in November 2016 to build two new elementary schools ● New buildings scheduled to open in August 2019 (Fiscal Year 2020) ● Construction fund is not part of the forecast ● The district passed a 4.90 mill continuous operating levy in May 2017 to be used for the following items ● Restore transportation services ● Restore elementary level programs ● Reduce pay to participate fees ● Collection of levy begins in second half of Fiscal Year 2018 ● New state biennium budget is now known for fiscal years 2018 and 2019. Educating Excellence!
Material Changes from October 2017 Forecast ● Spike in property tax revenue due to changes in federal tax law. Many taxpayers prepaid their taxes due in 2018 in late 2017 causing an unanticipated spike in the spring 2018 tax settlement. This is expected to reverse itself in fall 2018. ● 1.010 General Property Tax Revenue: $365,515 increase ● 1.020 Public Utility Personal Property: $551,677 increase ● 1.060 All Other Operating Revenues: $100,000 (Joint Financing) ● Collection of Medicaid Cost Report Settlements for fiscal years 2011, 2012, 2013, 2014, and 2015. ● Total Received: $671,468 + Over $50,000 in interim claims for 2018 ● Reflected in line 1.060 All Other Operating Revenues Educating Excellence!
Material Changes from October 2017 Forecast ● Collection of overcharges from Mentor Cares program for fiscal years 2012, 2013, and 2014 ● Total Received in 2018: $178,968.31 (Plus $82,171 received in 2017 for fiscal year 2015) ● Reflected in line 2.060 – All Other Financing Sources ● BWC proposes another $1.5 billion rebate ● Approximately equal to 85% of calendar year 2016 premium ● Estimated to receive $155,000 in fiscal year 2019 ● Reflected in line 2.060 – All Other Financing Sources ● ECOT closing – Decrease in total community school deduction of $273,068.17 - - ECOT portion: $243,835.95 ● (FY2018 October #1 compared to FY2018 May #2) ● Reduction to line 3.060 – Purchased Services Educating Excellence!
Executive Overview ● Solvent through the end of fiscal year 2022 (See line 7.020) ● Deficit spending is projected to start in fiscal year 2020 ● Deficit spending is where expenditures exceed revenues ● See line 6.010 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses ● There are efficiencies that will be gained by opening new facilities ● Some not currently reflected in the forecast, which may eliminate the projected deficit spending ● FY2020 begins another state biennium budget (Another in FY2022) ● The district will continue to carefully monitor future potential reductions in state funding and monitor staffing levels Educating Excellence!
Executive Overview
Revenues vs. Expenditures Note: Fiscal years 2015-2017 are actual. Fiscal years 2018-2022 are projected. Educating Excellence!
Revenue Note: Based on fiscal year 2018 projected revenue. Educating Excellence!
Revenue – Major Components ● General Property-Real Estate: $25,742,704 (55%) ● Primarily residential community (84%) ● Total valuation for TY2016 was $982,022,270 vs. $939,723,848 in TY2005 ● Increasing valuation results in additional revenue only from the district’s inside millage (4.80 mills) and the substitute levy (4.59 mills, on new construction only) ● All levies are in place for a continuous period ● The 4.90 mill levy passed in May 2017 started collection in the second half of FY2018 Educating Excellence!
Revenue – Major Components Educating Excellence!
Revenue – Major Components ● Unrestricted Grants-in-Aid: $8,871,076 (19%) ● State funding formula – funding based on enrollment ● Formula starts with $6,010 per student but is reduced by the state share index based on the district’s valuation per pupil and median income compared to state averages ● Riverside receives only 21.05% or $1,265 per student before “guarantee” ● Prior year was 22.5% or $1,350 per student ● The district is back on the “guarantee” ● Projected $494,847 in FY2018 and $1,106,060 in FY2019 ● ODE SFPR May #1 calculates the transitional aid guarantee at $487,648.05 ● Casino tax revenue - $49.50 per student (Down from $50.00) ● HB64 TPP supplement (hold harmless provision) ● Only effective for prior biennium budget (2016-2017) ● Received $91,468 in FY2016 and $161,328 in FY2017 (plus $69,693.08 to be received in FY2018 relating to FY2017) Educating Excellence!
Revenue – Major Components Educating Excellence!
Enrollment Projection (Headcount) Educating Excellence!
Revenue – Major Components ● Property Tax Allocation: $3,497,941 (8%) ● Homestead and rollback reimbursements from the state (No rollbacks apply to new levies passed after the August 2013 election) ● TPP reimbursement phase-out ● Previous and current biennium budget resumed phase-out by reducing it by 5/8 of property tax mill per year ● $3,096,995 in FY2011 ● $2,366,917 in FY2012 ● $1,644,808 in FY2013, FY2014, and FY2015 ● $947,309 in FY2016 ● $188,307 in FY2017 ● $0 in FY2018 and beyond! Educating Excellence!
Revenue – Major Components Educating Excellence!
Revenue – Major Components ● All Other Operating Revenues: $5,130,370 (11%) ● Joint Financing District - $2,261,403 ● In effect through tax year 2019 / collection year 2020 (1 st half of FY2021) ● Non-renewal of this levy would be detrimental! ● Monitoring effect of closing of Perry Nuclear Power Plant ● Pay to Participate fees - $200,000 ● Reduced from $318,655 in FY2017 due to reduced fees / passage of levy ● Open Enrollment In - $630,713 ● Classroom fees - $170,000 ● Medicaid Reimbursements - Projected a one time spike of $671,486 in FY2018 due to long outstanding cost report settlements for FY2011 ($47,927), FY2012 ($21,954), FY2013 ($202,811), FY2014 ($240,022), and FY2015 ($158,754) received in FY2018. Reimbursements expected to be $192,133 in FY2019 and $150,000 per year in FY2020 and beyond ● Includes various other revenue streams such as interest, SF14 tuition, excess cost, shared services, field trips, kindergarten tuition, rentals, fines, and manufactured homes tax revenue Educating Excellence!
Revenue – Major Components Educating Excellence!
Expenditures Note: Based on fiscal year 2018 projected expenditures. Educating Excellence!
Expenditures – Major Components ● Personnel Services: $22,686,285 (52%) ● Includes salary and wages for certified, classified, exempt, and administrators ● Also includes cost of substitute teachers ● Two bargaining units: RLEA and OAPSE ● RLEA contract in effect through fiscal year 2021 ● OAPSE contract in effect through fiscal year 2020 ● Certified step increase estimated at nearly 3% per year ● Certified degree changes estimated at 0.33% per year ● Classified salaries based on negotiated agreement ● Administrative and exempt salaries estimated to increase 3% per year ● Forecast assumes some adjustment to staffing levels and savings from retirements ● Adjustments for return of elementary level programming ● Anticipate some savings in FY2020 when new elementary schools open, but these savings are not currently reflected in the forecast due Educating Excellence!
Expenditures – Major Components ● Employees’ Retirement/Insurance Benefits: $9,203,264 (21%) ● Projections based on percentage of salaries include: retirement (14%), Medicare (1.45%), workers compensation (1.00%) ● Projections not based on percentage of salaries, but based on employee enrollment include: ● Medical Insurance: Increase of 8% per year in 2019 and beyond (Actual increase is 9%, but changes were made to the portion paid by employees) ● Dental and Vision: Increase of 3% per year in 2019 and beyond ● Member of Lake County Schools Council to help contain costs Educating Excellence!
Recommend
More recommend
