Five Year Forecast 1 Miamisburg City School District FY 2014-15 - - PowerPoint PPT Presentation

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Five Year Forecast

Miamisburg City School District FY 2014-15 May 28, 2015

Major Revenue Assumptions

 Substitute emergency levy renewed in Feb 2010 is

modeled to be renewed and is included in the regular Property Tax categories. It was on the ballot to be renewed November 2014, so the renewal is seamless.

 State funding increased by $1,345,315 in FY 2014 due

to increased state funding (capped at 6.25%) and a full year of casino revenue. ($50 per student)

 State funding is increased by $1,640,830 in FY 2015

due to increased state funding. (capped at 10.5%).

 State funding in future years are projected to increase

by 7.50% in FY 2015 and FY 2016 due to the assumption that the cap will be lifted further.

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Major Revenue Assumptions

 The Tangible Personal Property Reimbursement

declined by $831,759 in FY 2012, declined by another $817,748 in FY 2013 and then is projected to decline by $842,523 in FY 2016 and another $416,597 in FY 2017. The amount of the reduction will be shifted to the taxpayer.

 State Fiscal Stabilization Funds of $924,424 were

eliminated completely in FY 2012. Ed Jobs Funds in FY 2012 of $586,140 helped soften the blow and were eliminated completely in FY 2013.

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State Funding Formula

 Without caps on the current increase of state

funding to schools, Miamisburg would have received an ADDITIONAL $5,422,018 in FY 2014 and would receive an ADDITIONAL $4,405,607 in FY 2015. That’s a total of $9,827,625 over 2 years.

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TIF Revenue

• On September 6, 2011 the district received $2 million plus

interest from the Austin Road Interchange Project. Recent contract changes allow us to place the entire amount in the General Fund. For the next several years the revenue will go towards debt service payments so the district will not receive revenue payments.

• The district has two TIF agreements. One is the Austin

Road Interchange Project and the other one is the Dayton Mall.

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Projected Revenue - Austin Road TIF

 Beginning in FY 2016 it is projected that the

realization of revenue from the Austin Road TIF will be $500,0000, which will consist of base payments and arrearage payments.

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Projected Revenue - Austin Road TIF

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Base Payment Arrearage Payment Kicker Payment TOTALS CY2016 810,677.00 283,300.00

• 1,093,977.00

CY2017 832,050.00 2,152,667.00

• 2,984,717.00

CY2018 956,491.00 454,435.00

• 1,410,926.00

CY2019 977,864.00 819,622.00 1,797,486.00 CY2020 999,237.00 837,115.00 1,836,352.00

Projected Revenue - Austin Road TIF

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Base Payment Arrearage Payment Kicker Payment TOTALS FY 2016 405,338.50 141,650.00 546,988.50 FY 2017 821,363.50 1,217,983.50

• 2,039,347.00

FY 2018 894,270.50 1,303,551.00

• 2,197,821.50

FY 2019 967,177.50 227,217.50 409,811.00 1,604,206.00 FY 2020 988,550.50

• 828,368.50

1,816,919.00

Property Tax Collections

Fiscal Year 9

• 5,0 0 0 ,0 0 0

10 ,0 0 0 ,0 0 0 15,0 0 0 ,0 0 0 20 ,0 0 0 ,0 0 0 25,0 0 0 ,0 0 0 30 ,0 0 0 ,0 0 0 20 0 9 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19

Property Tax Refunds

• August 2012 – Approx $209,000
• March 2013 – Approx $420,000
• August 2013 – Approx $346,928
• March 2014 – Approx $135,575
• August 2014 – Approx $ 50,000
• March 2015 – Approx $402,000

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These refunds are because of property tax valuation challenges, tax abatements, and tax exemptions

Tangible Taxes

Fiscal Year 11

• 50 0 ,0 0 0

1,0 0 0 ,0 0 0 1,50 0 ,0 0 0 2,0 0 0 ,0 0 0 2,50 0 ,0 0 0 20 0 9 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19

Tangible Tax & Tangible Reimbursement

Fiscal Year 12

• 1,0 0 0 ,0 0 0

2,0 0 0 ,0 0 0 3,0 0 0 ,0 0 0 4 ,0 0 0 ,0 0 0 5,0 0 0 ,0 0 0 6 ,0 0 0 ,0 0 0 20 0 9 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19

Tangible Tax Tangible Tax Reimbursement

Major Expenditure Assumptions

 Base salary freeze and step freeze for all staff for FY 2012, FY 2013. Step freeze

for FY 2014 and FY 2015. FY 2014 includes a three percent base salary increase and FY 2015 includes a two percent base salary increase. FY 2016 through FY 2019 includes a 2 % base salary increase for all staff, in addition to step increases.

 Board contribution levels for health, dental and life insurance remained the same

for FY 2011 through FY 2013. CY 2014 levels will increase by 5% and CY 2015 will increase by 2.5%. CY 2016 and 2017 are projected to increase by 2%.

 Increased medical costs in FY 2016 and beyond due to health care reform.  Additional staff for Kinder beginning in FY 2013 and additional staff in future

years as needs arise.

 Purchased services are projected to increase as the cost of tuition & utilities rise

and as more special education services are required.

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Salaries

Fiscal Year 14

25,0 0 0 ,0 0 0 26 ,0 0 0 ,0 0 0 27,0 0 0 ,0 0 0 28 ,0 0 0 ,0 0 0 29 ,0 0 0 ,0 0 0 30 ,0 0 0 ,0 0 0 31,0 0 0 ,0 0 0 32,0 0 0 ,0 0 0 33,0 0 0 ,0 0 0 34 ,0 0 0 ,0 0 0 35,0 0 0 ,0 0 0 36 ,0 0 0 ,0 0 0

Benefits

Fiscal Year 15

• 1,0 0 0 ,0 0 0

2,0 0 0 ,0 0 0 3,0 0 0 ,0 0 0 4 ,0 0 0 ,0 0 0 5,0 0 0 ,0 0 0 6 ,0 0 0 ,0 0 0 7,0 0 0 ,0 0 0 8 ,0 0 0 ,0 0 0 9 ,0 0 0 ,0 0 0 10 ,0 0 0 ,0 0 0 11,0 0 0 ,0 0 0 12,0 0 0 ,0 0 0 13,0 0 0 ,0 0 0 14 ,0 0 0 ,0 0 0

Purchased Services

16 Fiscal Year

• 1,0 0 0 ,0 0 0

2,0 0 0 ,0 0 0 3,0 0 0 ,0 0 0 4 ,0 0 0 ,0 0 0 5,0 0 0 ,0 0 0 6 ,0 0 0 ,0 0 0 7,0 0 0 ,0 0 0 8 ,0 0 0 ,0 0 0 9 ,0 0 0 ,0 0 0 10 ,0 0 0 ,0 0 0

How do revenues compare to expenditures?

17 Fiscal Year

4 0 ,0 0 0 ,0 0 0 4 2,0 0 0 ,0 0 0 4 4 ,0 0 0 ,0 0 0 4 6 ,0 0 0 ,0 0 0 4 8 ,0 0 0 ,0 0 0 50 ,0 0 0 ,0 0 0 52,0 0 0 ,0 0 0 54 ,0 0 0 ,0 0 0 56 ,0 0 0 ,0 0 0 58 ,0 0 0 ,0 0 0 6 0 ,0 0 0 ,0 0 0 6 2,0 0 0 ,0 0 0 Total Revenues Total Expenditures

Levy Cycles

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 Just like any privately held business, schools have

breakeven points too. Typically a school district

• perates within levy cycles. For example, the

common situation is for a school’s revenue to exceed expenditures for a period of years immediately following the passage of a levy. After several years, expenditures (driven by inflationary pressures) will eventually overtake revenues if the school simply attempts to maintain what they have.

What is the annual net overage or (shortfall)?

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(7,0 0 0 ,0 0 0 ) (6 ,0 0 0 ,0 0 0 ) (5,0 0 0 ,0 0 0 ) (4 ,0 0 0 ,0 0 0 ) (3,0 0 0 ,0 0 0 ) (2,0 0 0 ,0 0 0 ) (1,0 0 0 ,0 0 0 )

• 1,0 0 0 ,0 0 0

2,0 0 0 ,0 0 0 3,0 0 0 ,0 0 0 4 ,0 0 0 ,0 0 0 5,0 0 0 ,0 0 0

Excess of Revenue Over(Under) Expenditures

What is the effect on the cash balance ?

20 Fiscal Year

• 7,000,000
• 6,000,000
• 5,000,000
• 4,000,000
• 3,000,000
• 2,000,000
• 1,000,000

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019

End of Year Cash Balance

30 days of operating cash

Where does the money come from ?

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Real Estate Tax 55% Personal Property Tax 3% Other Local 3% State Foundation 27% Career Tech/ Restricted 1% State Tax Allocation 11% Other Financing 0%

Newer Levies

• $6,775,000

5 year Emergency Levy

• first passed 5/ 4/ 2010 as a 3 year
• renewed in 11/ 2012 for 5

years (runs until 2018)

• $7,225,000

5 year Substitute Emergency Levy

• passed 2/ 2/ 2010
• renewed in 11/ 2014 for 5 years

(runs until 2020)

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Conclusion

With the assumptions in this forecast we are able to balance the budget through FY 2018.

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