Riverside Local School District Five Year Forecast Presentation May - - PowerPoint PPT Presentation

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Riverside Local School District Five Year Forecast Presentation May - - PowerPoint PPT Presentation

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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,

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Educating Excellence!

Riverside Local School District

Five Year Forecast Presentation May 22, 2018 Presented by: Gary A. Platko

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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!

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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

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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!

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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!

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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

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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
  • ver (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!

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Executive Overview

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Revenues vs. Expenditures

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Note: Fiscal years 2015-2017 are actual. Fiscal years 2018-2022 are projected.

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Revenue

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Note: Based on fiscal year 2018 projected revenue.

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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

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Revenue – Major Components

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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)

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Revenue – Major Components

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Enrollment Projection (Headcount)

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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!

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Revenue – Major Components

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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 (1st 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!

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Revenue – Major Components

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Expenditures

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Note: Based on fiscal year 2018 projected expenditures.

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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

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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
  • n 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!

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Expenditures – Major Components

  • Purchased Services: $9,639,608 (22%)
  • Approximately 50% of the costs for purchased services are

for tuition based costs, which includes open enrollment

  • ut ($1,761,814), community school deductions

($850,000), scholarships out ($900,000), and other tuition related items ($1,348,585)

  • Purchased services includes a wide range of other items

including special education services, instructional services, utilities, postage, printing, repairs, security, contracted transportation services, insurance, legal services, etc.

  • Each item is assessed individually and projected based on

historical information, current trends, and information known at the time the forecast was prepared

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Open Enrollment

Students Based On Funded FTE In: 104.944 Out: 293.724 Loss: 188.780 In: 80.040 Out: 220.852 Loss: 140.812

Note: FY2017 based on SFPR Final #3 and FY2018 based on SFPR May No. 1 payment from ODE.

FY2018 FY2017

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Community School Deduction

Educating Excellence!

Note: FY2017 based on SFPR Final #3 and FY2018 based on SFPR May No. 1 payment from ODE.

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Cash Balance

  • Ending Cash Balance (Line 7.020) – This line represents the total cash

balance without including reservations or outstanding obligations. In ODE’s experience, school districts should attempt to maintain a 30 – 60 day cash reserve

  • Ending cash balance expressed in number of days at June 30th:
  • 2011 Actual: $645,248

5.32 Days

  • 2012 Actual: $869,525

7.28 Days

  • 2013 Actual: $2,861,301

26.65 Days

  • 2014 Actual: $4,416,412

42.02 Days

  • 2015 Actual: $5,819,516

52.77 Days

  • 2016 Actual: $6,516,309

57.91 Days

  • 2017 Actual: $5,367,589

46.12 Days

  • 2018 Projected: $8,002,676

66.58 Days

  • 2019 Projected: $8,499,196 68.63 Days
  • 2020 Projected: $8,187,574

63.80 Days

  • 2021 Projected: $6,296,764 47.19 Days

Educating Excellence!

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Cash Flow – FY2018 and FY2019

Educating Excellence!