Logan-Hocking Local School District Moodys Rating Presentation - - PowerPoint PPT Presentation

Logan-Hocking Local School District Moody’s Rating Presentation

August 3, 2020

COMMUNITY OVERVIEW

State & School District Map

2

US Rt 33

$19,206 $20,440 $21,297 $21,543 $21,800 $21,981 $22,775 $23,604 $24,463 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

Historical Per Capita Income

$48,519 $51,122 $50,355 $52,891 $52,733 $53,114 $54,369 $61,070 $63,849 $0 $20,000 $40,000 $60,000 $80,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

Historical Median Family Income

COMMUNITY OVERVIEW

Increasing Wealth Trends Within the District

3

Source: US Census Bureau

• Increasing wealth trend within the District
• Both median family income and per capita income have been increasing since 2010
• Median family income increased by 31.6% since 2010
• Per capita income increased by 27.4% since 2010

COMMUNITY OVERVIEW

Very Affordable District

4

Assumes $126,000 home value and $63,849 median family income. Source: US Census Bureau and Ohio Municipal Advisory Council

• Taking into account all property taxes & any school district income taxes that the average homeowners pays:
• Relative to surrounding districts, Logan-Hocking LSD is affordable
• Compared to urban districts closer to Columbus, Logan-Hogan LSD is most affordable
• The dollar is stretched a lot further in the District – residents don’t need as much to live off of

$1,826 $1,943 $1,994 $2,166 $2,437 $2,450 $2,783 $3,069 $3,133 $3,312 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500

Vinton County LSD New Lexington CSD Logan-Hocking LSD Southern LSD Nelsonville-York CSD Logan Elm LSD Alexander LSD Amanda-Clearcreek LSD Berne Union LSD Fairfield Union LSD

Affordability Comparison of Surrounding School Districts

$1,994 $2,804 $3,010 $3,050 $3,151 $3,336 $3,561 $3,902 $3,975 $0 $1,000 $2,000 $3,000 $4,000 $5,000

Logan-Hocking LSD Groveport-Madison LSD Columbus CSD Whitehall CSD Hamilton LSD Pickerington LSD Gahanna-Jefferson CSD Bexley CSD Reynoldsburg CSD

Affordability Comparison of Southeastern Columbus MSA Districts

Rank Employer County Industry Employees 1 Ohio University Athens Education 4,345 2 Adena Regional Medical Center Ross Healthcare 3,452 3 Kenworth Truck Company (Paccar) Ross Manufacturing 2,285 4 Fairfield Medical Center Fairfield Healthcare 1,864 5 Veterans Affairs Medical Center Ross Healthcare 1,567 6 Ohio Health Athens Healthcare 947 7 Fairfield County Fairfield Government 938 8 Anchor Hocking Corporation Fairfield Manufacturing 900 9 Pixelle Ross Manufacturing 874 10 Lancaster City School District Fairfield Education 705 11 Athens County Athens Government 630 12 Chillicothe Correctional Institute Ross Ohio Penal Institution 543 13 Ross County Correctional Institute Ross Ohio Penal Institution 505 14 Logan-Hocking Local School District Hocking Education 466 15 Ross County Ross Government 431 16 City of Lancaster Fairfield Government 430 17 Kroger Fairfield Grocery 412 18 Pickaway/Ross JVSD Ross Education 371 19 Athens City School District Athens Education 347 20 Chillicothe City School District Ross Education 340 21 Walmart Athens Retail 336 22 Hocking County Government Hocking Government 316 23 Hocking College Athens Education 300 24 Kroger Athens Grocery 300 25 Hocking Valley Community Hospital Hocking Healthcare 285 26 City of Chillicothe Ross Government 285 27 Walmart Hocking Retail 265 28 Smead Manufacturing Hocking Manufacturing 230

LOCAL & REGIONAL ECONOMY

Diversified Employment Opportunities within the Region

5

Source: City of Lancaster, Athens Chamber of Commerce, Ross County, Logan-Hocking Local School District. Repeated employers indicate locations and employees in different counties.

LOCAL & REGIONAL ECONOMY

Diversified Employment Opportunities within the District

6

Source: Logan-Hocking Local School District

Rank Employer Industry Employees 1 Logan-Hocking Local School District Education 466 2 Hocking County Government Government 316 3 Hocking Valley Community Hospital Healthcare 285 4 Walmart Retail 265 5 Smead Manufacturing Manufacturing 230 6 Amanda Manufacturing Manufacturing 191 7 Kroger Grocery 135 8 City of Logan Government 130 9 Logan Care, LLC Healthcare 113 10 Logan Clay Products Company Manufacturing 87

SCHOOL DISTRICT OVERVIEW

Leadership Team

7

Board Member Service with District Since Present Term Expires December 31 Occupation

• Dr. Scott Anzalone, President

2008 2023 Family Physician Lance Bell, V.P. 2014 2021 Pharmacist Amy Black 2020 2023 Nurse Practitioner Elizabeth Amnah 2018 2021 Retired Educator Mark Barrell 2018 2021 Retired District Employee Superintendent Monte Bainter 2016 Contract Superintendent Treasurer Paul Shaw CPA CGMA RSBFO 1992 Contract Treasurer

SCHOOL DISTRICT OVERVIEW

Chieftain Center Fieldhouse Project

8

• New Chieftain Center Fieldhouse Project
• Project Description:
• The Project includes the construction of a 86,000 sf facility with 6 lane 200 meter indoor running track, four full size

basketball courts, 12,000 sf turf area, two classrooms, weight & wrestling room, high jump, pole vault, long jump, throwing area, mezzanine viewing area, locker rooms, broadcast room, collapsible batting cages, concessions and restrooms.

• Programming including: Junior ROTC, Broadcasting/Technology and Curriculum based programs within facility
• Is available for community usage as well – “Hub of the Community”
• Funding Source:
• Issuance of Certificate of Participation “COPs” in the amount of $8.5 million
• Ribbon cutting and opening was in November, 2019
• Repayment Sources:
• Cash - $250k committed by the Board & $1.75 Million committed from Chieftain Boosters fundraising campaign of

which $1,388,000 has been received by the District to date

• Dedicated Additional Permanent Improvement Fund – Funded with Transfer of Inside Millage
• 2020: Transferred 1.025 Mills to “Permanent Improvement Fund – General”
• Generates $822,000 annually (2020 Calendar Collection)
• Sufficient to repay the annual COPs payments (approx. $498,000/year)
• No increase in tax burden for the current taxpayers
• The goal was to have inside millage equal the current taxpayer millage reduction as a result of the new

pipeline value

• District’s general fund revenues not be negatively affected by this Project
• Outside user fees will cover ongoing operational costs of the new facility

• Leach Xpress Pipeline (Trans Canada Corporation)
• Pipeline Overview
• Interstate pipeline transporting up to 1.5 Billion cubic

feet per day of natural gas through Ohio and West Virginia

• Pipeline is 150 miles long with diameters of 30 and 36

inches

• Includes 3 new compressor stations
• Timing
• Finished construction of new pipeline and compressor

station within the District in 2017

• Placed in-service on January 1, 2018
• Tax value became public in 2019 (Public Utility and Personal

Property)

• Assessed value of the pipeline within the

District is approximately $105 Million

• First tax revenues collected in Spring 2020
• Annual tax revenues of $3.4 Million began in

2020 for the District

SCHOOL DISTRICT OVERVIEW

Funding for Chieftain Center Fieldhouse

9

*Estimated revenues per year pipeline is calculated assuming current 2020 assessed values and first half 2020 collections.

• Inside Millage within the District
• Historically Transferred Inside Millage for Specific Needs within the District
• Always transferred inside millage as a result of existing millage being reduced
• Revenues from inside millage increases as assessed valuations grow
• Historical Transfers of Inside Millage within the District
• 1997: Transferred 1.00 Mill to “Permanent Improvement Fund – General”
• Can be used for textbooks, buses, equipment, buildings, lease-purchase agreements, etc.
• Generates $802,000 annually (2020 Calendar Collection)
• 2001: Transferred .50 Mills to “Permanent Improvement Fund – Technology”
• Provides for technology needs throughout the buildings
• Generates $401,000 annually (2020 Calendar Collection)
• 2013: Transferred .875 Mills to “Permanent Improvement Fund – General”
• Provides for additional permanent improvement needs including technology and maintenance

staff

• Generates $702,000 annually (2020 Calendar Collection)
• District transferred available remaining 1.525 mills of inside millage beginning in 2020
• 2020: Transferred 1.025 Mills to “Permanent Improvement Fund – General”
• Generates $822,000 annually (2020 Calendar Collection)
• Sufficient to repay the annual COPs payments (approx. $498,000/year)
• 2020: Transferred 0.50 Mills to “Permanent Improvement Fund – Technology”
• Generates $401,000 annually (2020 Calendar Collection)
• Provides funds for additional technology needs throughout the District

SCHOOL DISTRICT OVERVIEW

Funding for Chieftain Center and Other Permanent Improvements

10

*Estimated revenues per year from inside millage movement is calculated assuming current 2020 assessed values and first half 2020 collections.

SCHOOL DISTRICT OVERVIEW

New Chieftain Center Fieldhouse Project

11

SCHOOL DISTRICT OVERVIEW

New Chieftain Center Fieldhouse Project Conceptual Plans

12

FINANCIAL OVERVIEW

Strong Community Support Since 1981

13

• Non-Reliant on Operating Levies
• Non-Reliant on Permanent Improvement Levies
• 100% Operating Levy Passing Rate Since 1981!
• No need to go to the voters for additional funds
• Maintains low cost of living for residents
• Provides for long-term needs of the School District
• Inside Millage Revenues Increase as Tax Base Increases

Bond Elections

Election Date Millage Bond Issue Amount Purpose Years Result For Against Percentage For (Against) 5/8/2001 3.70 $23,680,000 Cnstrctn, Site Imprvmnts 28 Approved 3,643 2,245 61.87 % (38.13 %) 11/7/1989 5.70 $12,190,000 Building & Improvements 23 Approved 3,299 3,199 50.77 % (49.23 %) 11/4/1986 Unavailable* $9,175,000 Building & Improvements Unavailable* Defeated 2,670 3,780 41.40 % (58.60 %)

Levy Elections

Election Date Millage New/Renewal Purpose Years Result For Against Percentage For (Against) 5/8/2001 0.50 New Permanent Improvement CT Approved 3,643 2,245 61.87 % (38.13 %) 11/3/1981 7.00 New Current Expense CT Approved 3,209 3,003 51.66 % (48.34 %)

*The millage rate and term put on the ballot were unable to be easily be found at this time.

FINANCIAL OVERVIEW

Enrollment Trend

14

Source: Ohio Department of Education and Logan Hocking Local School District.

• Logan-Hocking LSD headcount from 2012 - 2020 = -6.23%
• State of Ohio headcount 2012-2020 = -4.32%

4,080 4,147 4,090 4,069 3,987 3,927 3,925 3,893 3,826 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY2020

FINANCIAL OVERVIEW

Positive Historical Net Open Enrollment

15

• Logan-Hocking LSD has experienced positive and growing net open enrollment historically
• Due to the geographical size of District, the District has seen fluctuations of open enrollment out due to

convenience of families living closer to other school districts

• Consistently, the District has realized positive net open enrollment due to:
• Academics, athletics, theatre and other extracurricular activities provided by District
• Future open enrollment should be positive and growing due to:
• New Chieftain Center Fieldhouse Project which will include:
• Junior ROTC, Broadcasting/Technology and other curriculum-based programming
• Logan-Hocking LSD rents the second and third floor of a new theatre in downtown Logan.
• District has a strong theatre group and having a nice theatre was important to the community.
• The District only accepts an open enrolled student if it makes sense financially to do so

Source: Treasurer’s Office

Historical Open Enrollment

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

In

125 126 131 182 189 194 189

Out

100 110 114 119 125 125 118

Net In

25 16 17 63 64 69 71

FINANCIAL OVERVIEW

Properly Managed Staffing Trends

16

• Three Labor Unions
• Certified Employees - Logan Education Association

(LEA)

• Negotiated a new 3 year contract in May, 2018
• Base salary increases of 2.25% in FY 2019, 3.0% in FY

2020 and 4.0% FY 2021

• Contract in effect until August 31, 2021
• Next Negotiations in 2021
• OAPSE #218 – Classified employees
• Negotiated a new 3 year contract in Summer 2019
• Hourly increases of $0.75 in FY2019, $0.80 in FY

2020

• FY2021 is to be determined with a wage opener

clause in the current contract

• Contract in effect until June 30, 2022
• Next Negotiations in 2022
• OAPSE #126– Classified employees
• Negotiated a new 3 year contract in Summer 2018
• Included age adjustments and certain fringe benefits
• Hourly increases of $0.35 in FY2019, $0.35 in FY

2020 and $0.40 in FY2021

• Contract in effect until June 30, 2021
• Next Negotiations in 2021
• For all 3 Unions, the Five-Year Forecast assumes no base salary

increase post FY21 and step increase of about 1.5% annually

• Pupil Teacher Ratio of 15.7:1 is low

compared to similar districts in Ohio

• Administration closely monitoring for

appropriate staffing levels

• District realizes expenditure reductions

could be realized if they had to make reductions

• Proactive Approach to Maintaining

Relationship with Union

• Realistic expectations for negotiations
• Transparency and Trust
• Treasurer, Superintendent and Union

President attend meetings

FINANCIAL OVERVIEW

Key Financial Management Initiatives

17

• Remain Fiscally Conservative
• Maintain & Encourage Open Enrollment
• Manage Staffing Needs Based on Enrollment
• Control Health Insurance & Benefits
• Partially self funded insured by South Central

Ohio Insurance Consortium

• Established Health Savings Accounts and

Flexible Spending Accounts

• Control Expenditures & Improve Business

Operational Efficiencies

• Maintain & Grow Strong General Fund Balance
• Cash Balance as a Percent of Revenues: 26.64%

(FYE 2019)

• Fund Balance as Percent of Revenues: 21.28%

(FYE 2019)

• Cash Balance Policy
• General fund cash balance policy of 2 months
• perating expenses
• Investment Policy
• Established and proven Investment policy
• Continuous Improvement Plan
• District Level Team – consists of

administrators, teachers and parents

• Building Level Team – analyze and make

decisions

• Recently adopted a new formal plan
• Capital Planning
• Technology Improvement Plan
• Bus / Textbook Improvement Plan
• Energy Conservation Program
• Cumulative savings over $2 million from

December 2010 – March, 2018

• National Awards Winner
• Designated energy specialist on staff
• Monthly Reports Reviewed by Board

Includes General Fund and Bond Retirement Fund Source: Logan-Hocking LSD Financial Audits – GAAP Basis

Collection Agricultural Residential Commercial Industrial Public Utility Utility Personal Personal Tangible Mineral Total Value % Res. / Ag. 2001 22,309,230 183,034,550 25,393,770 8,905,690 40,014,940 98,640 28,730,874 863,490 309,351,184 66% 2002 25,901,310 223,076,220 28,045,020 8,945,590 36,466,430 104,020 31,010,313 770,060 354,318,963 70% 2003 26,681,750 231,378,190 30,263,080 7,930,990 38,285,640 100,480 31,059,718 825,090 366,524,938 70% 2004 27,158,570 239,874,680 30,149,510 7,531,630 39,006,680 97,180 29,106,834 805,580 373,730,664 71% 2005 31,573,130 282,470,840 35,857,890 8,599,280 38,482,050 101,810 31,638,536 1,279,880 430,003,416 73% 2006 31,967,500 291,263,260 33,960,860 7,778,350 38,627,340 113,510 31,229,875 1,284,340 436,225,035 74% 2007 32,527,660 298,110,880 34,136,250 7,941,590 38,918,040 106,060 21,259,620 1,129,190 434,129,290 76% 2008 36,864,720 336,527,490 37,344,660 7,148,650 37,175,190 101,320 16,296,013 743,710 472,201,753 79% 2009 37,191,380 342,086,210 37,711,160 7,016,370 38,054,960 99,700 8,559,000 558,930 471,277,710 80% 2010 37,175,670 348,434,250 37,989,730 7,031,380 40,312,680 102,050 884,420 541,820 472,472,000 82% 2011 37,569,500 348,717,820 38,569,340 6,791,910 41,753,470 94,450 428,770 472,330 474,397,590 81% 2012 38,695,160 352,542,350 38,414,940 6,679,090 43,230,500 93,700 470,740 480,126,480 81% 2013 39,010,620 354,195,800 39,469,290 7,062,740 44,686,660 95,080 479,000 484,999,190 81% 2014 43,043,790 343,122,170 39,536,100 7,389,780 46,575,080 94,410 476,170 480,237,500 80% 2015 43,969,590 346,826,790 39,317,280 7,378,660 47,602,120 89,520 463,390 485,647,350 80% 2016 44,841,310 349,990,370 39,005,470 7,507,190 54,033,110 85,540 428,990 495,891,980 80% 2017 35,964,570 382,811,820 42,701,150 8,040,440 65,567,410 87,390 505,020 535,677,800 78% 2018 37,759,880 386,496,290 40,947,840 7,267,230 73,270,410 88,710 381,780 546,212,140 78% 2019 37,442,210 390,998,560 41,521,520 7,274,170 90,286,830 87,670 332,480 567,943,440 75% 2020 37,238,360 457,055,790 42,836,200 6,710,540 258,133,830 88,710 240,120 802,303,550 62% Reappraisal Year Update Year

• Assessed Value Trends – Reliable & Significant Growth
• The District is very much “Recession Proof” in term of Assessed Values – One small decrease in 2014
• Other small decreases were due to TPP phase out and showed overall growth in other areas
• Growth of $56 Million in Residential values during 2020 update year
• Public Utility Values increased by $168 Million in 2020
• Leach Xpress pipeline has been placed in service January 1, 2018 – Revenues received in 2020
• Estimated new annual property tax revenues of approximately $3.4 Million will paid in 2020

FINANCIAL OVERVIEW

Growth in Historical Assessed Valuations

18

Source: Ohio Municipal Advisory Council and Ohio Department of Taxation.

$9,748,744 $10,243,579 $10,566,103 $13,730,809 $16,069,036 $16,180,922 $16,370,826 $16,497,044 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2017 2018 2019 2020 Est. 2021 Est. 2022 Est. 2023 Est. 2024 Est.

FINANCIAL OVERVIEW

Increasing Property Tax Revenues

19

Source: Logan-Hocking Local School District May, 2020 Five Year Forecast

• Projected growth in revenues is due to:
• Anticipated some conservative growth within the District based upon historical trends
• Majority of the growth is due to Leach Xpress Pipeline in 2020 & 2021 and other public utility and

residential growth

$21,500,015 $21,763,051 $22,328,369 $21,721,391 $21,114,763 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2017 2018 2019 2020 Est. 2021 Est.

FINANCIAL OVERVIEW

State Funding

20

• The District is Currently a Capped Under the Current Funding Formula
• Reliable and stable funding under current administration
• District qualifies for the Community Eligibility Provision for Food Services
• Provided an additional annual aid of $600k in 2019 which put the District at the funding cap
• Stable State Funding for Logan-Hocking Local School District Under State Budget:
• FY 2017 State Total Funding: $21,500,015
• FY 2018 State Total Funding: $21,763,051 (1.22% increase from FY 2017)
• FY 2019 State Total Funding: $22,328,369 (2.60% increase from FY 2018)
• FY 2020 State Total Funding: $21,721,391 (2.72% decrease from FY 2019)
• FY 2021 State Total Funding: $21,114,763 (2.79% decrease from FY 2020)
• Conservative funding estimate based upon indications due to COVID-19
• District estimated two times the impact of the FY2020 cut in FY 2021

Source: Logan-Hocking Local School District’s May, 2020 Five Year Forecast

FINANCIAL OVERVIEW

Very Strong Financial Management

21

• Successfully Controlled Operating Expenses Historically
• The District has consistently managed operating expenses to generate a surplus in 2014 - 2017
• Planned expenditures in 2018 and 2019 caused total expenses to increase due to:
• 27th payroll in 2019 as opposed to the normal 26
• Raises to staff to compete with Central Ohio

Includes General Fund and Bond Retirement Fund Source: Logan-Hocking LSD Financial Audits – GAAP Basis

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2014 2015 2016 2017 2018 2019 Revenues Expenses 0.70x 0.80x 0.90x 1.00x 1.10x 1.20x 1.30x 1.40x 2014 2015 2016 2017 2018 2019 Revenues over Expenses

• Fund balance currently 21.28% of revenues as of FYE 2019
• Cash balance currently 26.64% of revenues as of FYE 2019
• The recent reductions in fund and cash balances was a planned reduction due to planned one-time expenditures in 2018 & 2019.
• District does not anticipate this to continue.
• District has a Cash Balance Policy of 2 Months Operating Expenses

FINANCIAL OVERVIEW

Very Strong & Improving Fund Balances

22

Includes General Fund and Bond Retirement Fund Source: Logan-Hocking LSD Financial Audits – GAAP Basis

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2014 2015 2016 2017 2018 2019 Fund Balance Cash Balance 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 2014 2015 2016 2017 2018 2019 Fund Balance as a % of Revenue Cash Balance as a % of Revenue

FINANCIAL OVERVIEW

May 2020 Forecast Versus Actual

23

Forecasted Actual Line 5/30/2020 6/30/2020 1.010 General Property (Real Estate) 9,013,201 9,013,201 1.020 Tangible Personal Property Tax 4,717,608 4,717,608 1.035 Unrestricted Grants-in-Aid 18,052,869 18,148,684 1.040 Restricted Grants-in-Aid 3,668,522 3,663,909 1.050 Property Tax Allocation 1,370,952 1,349,402 1.060 All Other Operating Revenue 2,672,454 2,624,049 1.070 Total Revenue 39,495,606 39,516,853 2.070 Total Other Financing Sources 595,157 597,836 2.080 Total Revenues and Other Financing Sources 40,090,763 40,114,689 3.010 Personnel Services 23,526,529 23,292,732 3.020 Employees' Retirement/Insurance Benefits 10,294,444 10,462,863 3.030 Purchased Services 4,147,487 3,947,351 3.040 Supplies and Materials 933,911 1,019,368 3.050 Capital Outlay 25,000 35,312 4.300 Other Objects 544,998 683,958 4.500 Total Expenditures 39,472,369 39,441,584 5.040 Total Other Financing Uses 650,000 557,043 5.050 Total Expenditure and Other Financing Uses 40,122,369 39,998,627 6.010 Excess Rev & Oth Financing Sources over(under) Exp & Oth Financing

• 31,606

116,062 7.010 Beginning Cash Balance 4,834,032 4,834,032 7.020 Ending Cash Balance 4,802,426 4,950,094 8.010 Outstanding Encumbrances 100,000 100,000 10.010 Fund Balance June 30 for Certification of Appropriations 4,702,426 4,850,094 12.010 Fund Bal June 30 for Cert of Contracts,Salary Sched,Oth Obligations 4,702,426 4,850,094 15.010 Unreserved Fund Balance June 30 4,702,426 4,850,094 Cash Balance (15.010) as a Percent of Revenue (2.080) 11.73% 12.09%

FINANCIAL OVERVIEW

Five Year Forecast – Filed May, 2020

24

DEBT OVERVIEW

Current Financings Outstanding

25

• Current Debt Outstanding
• UTGO Refunding Bonds, Series 2015
• $6,165,000 currently outstanding
• Optional call date of December 1, 2023
• Final Maturity 2025
• UTGO Refunding Bonds, Series 2016
• $4,885,000 currently outstanding
• Optional call date of December 1, 2025
• Final Maturity 2029
• LTGO Theater Project Bonds, Series 2019
• $500,000 currently outstanding
• Optional call date of December 1, 2019
• Final Maturity 2044 (Fixed 25 Year Rate of 2.60% with Bank)
• Current Lease or Certificates of Participation Outstanding
• Lease Purchase for Facility Improvements
• $1,330,870 currently outstanding
• Annual Lease Payment Obligation of $53,103
• Final maturity of June 1, 2033
• Currently being repaid by permanent improvement inside millage
• Certificates of Participation, Series 2018
• $8,335,000 currently outstanding
• Annual COPs Payment Obligation of $8,335,000
• Final Maturity of December 1, 2047
• Optional call of December 1, 2025

SUMMARY & CLOSING

Maintain “Aa2” GO Bond Rating

26

• Affordable District Compared to Adjacent Districts
• Non-Reliant on Operating Levies
• Strong Conservative Management Team
• Strong & Improving Open Enrollment Trend
• Large & Significantly Growing Tax Base
• Assessed Values Only Had One Real Drop in the last 20 Years
• Public Utility Values Increased by $168 Million in 2020
• Healthy Financial Indicators of the District
• Consistently Managed Operating Expenses to Generate Operating Surplus in the Previous 4 of last 6 Years
• Planned deficit spending in 2018 & 2019 due to District knew future increase in revenues due to pipeline
• Strong Cash / Fund Balance as Percent of Revenues of 26.64% & 21.28% as of FYE 2019
• Expected in increase fund balances with additional new pipeline revenues – projected conservative surplus in 2021 - 2023
• Low Debt Burden & Debt Ratios
• Overall Since Last Rating:
• District has Become Wealthier; Tax Base has Increased Significantly; Planned Spenddown of Reserves
• Collecting Revenues from Leach Xpress Pipeline
• Utilizing Inside Millage which allows for growth in revenues as tax base continues to grow.

Includes General Fund and Bond Retirement Fund Source: Logan-Hocking LSD Financial Audits – GAAP Basis