OCTOBER 17, 2017 1 10/16/2017 Welcome/Intro Recent Events - - PowerPoint PPT Presentation

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OCTOBER 17, 2017 1 10/16/2017 Welcome/Intro Recent Events - - PowerPoint PPT Presentation

10/16/2017 OCTOBER 17, 2017 1 10/16/2017 Welcome/Intro Recent Events Five-year Forecast Wrap-up and Summary 2 10/16/2017 CFO 27 year career Worked for career center, county and K-12 Undergrad in Finance-Insurance


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OCTOBER 17, 2017

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 Welcome/Intro  Recent Events  Five-year Forecast  Wrap-up and Summary

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 CFO

 27 year career  Worked for career center, county and K-12  Undergrad in Finance-Insurance  MBA  Hold dual licensure (treasurer/bus. mgr.)  Certified SFO designation  Experience at both State and National levels

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What has transpired over last year?

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 Old system (Harris)

 One of very few remaining in Ohio  Support Issues  Costly  Outdated

 New System (PowerSchool)

 Accommodate change in way we do business  More efficient  Able to handle State Reporting  Increased Accountability

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 State Auditor Award

 Year-end June 30, 2016  Accurate reporting  Clean opinion

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Moody's Upgrades Brunswick C.S.D., OH's GO to A2

 Negative outlook has been removed  Upgrade reflects the district’s improved financial position

following consecutive years of surplus operations driven by State aid increases and restriction of expenditure growth

Credit Strengths

 Sizable tax base  Improved cash reserves following consecutive operating

surpluses

 Manageable debt burden

Benefits

Lower borrowing costs Independent third-party analysis of financial operations

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On November 7th the residents of Brunswick will see Issue 17, a 2.3 mill bond issue, on the ballot for the Brunswick City School District. Money generated by Issue 17 will be used to build one new middle school on the district’s property that sits behind Edwards and Visintainer Middle Schools. This project will not only consolidate the district’s three middle schools, but also solve problems related to the age and condition of those buildings. The Need

Visintainer - 67 years old ; Edwards - 95 years old

Rated 2nd and 3rd worst buildings according to the Exceptional Needs Program for the State of Ohio

Two trailers for additional classroom space

Visintainer floods during heavy rains

Edwards has foundation issues

Music classes travel between buildings

Performing arts spaces and athletic facilities are limited or non-existent

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The Benefit

21st Century learning spaces - flexible, encourage active student learning, support curriculum

More opportunities for students - academics, arts, extracurricular, athletics

Provides elementary roof repairs and window replacements (lowers energy costs)

Strong Schools = Strong Community = Strong Property Values

Energy efficient buildings (middle school will be LEED certified) Financial

State money available - $18.3 million (37% of the cost)

Low millage (2.3 mills) for taxpayers

Good time to borrow money - lower interest rates, improved bond rating

One middle school translates to lower operating and maintenance costs

First bond issue in 17 years

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Cost for Homeowners Home Value Monthly Cost $100,000 $6.71 $150,000 $10.06 $200,000 $13.42 Through the OFCC (Ohio Facilities Construction Commission), Brunswick is eligible to receive approximately $18 million (37% of the cost) covered by the State of Ohio. Being able to address facilities and reduce the cost to the community makes this the best time to build. The district cannot receive the state money until a bond issue is passed.

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October 2017

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 Revenue  Updated with actual data from FY17  Factored in County Auditor information regarding tax

valuation

 Triennial Update in 2016; Reappraisal 2019  Adjustment for emergency levy collection

 Updated estimates for State funding according to the

most recent biennial budget.

 Noted impact of the loss of personal property tax

reimbursement beginning FY18

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 Expenses

 Updated data (actual FY17)  Factored in Expenses

 Personnel costs thru FY19 then projection

for FY20-22

 Health benefits based on trend

 11.5% FY18; 8-9% in subsequent years

 Adjustment to purchased services for

substitute costs and 2% growth factor

 Supplies/materials 2-3% growth factor  Capital outlay relatively flat

 Sales Tax funding  $583k Federal-State Diesel Bus Grant Award

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MAY 2017

  • OCT. 2017
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  • 10

10 20 30 40 50 60 70 80 90 FY18 FY19 FY20 FY21 FY22

Millions

5-YEAR FORECAST

REVENUE EXPENSES FUND BALANCE May 2017

  • Estimates based on Oct. 2017 Assumptions
  • Assumes Emergency Levy Renewals
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Mark C. Pepera, CFO mpepera@bcsoh.org