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 28, 2019 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 28, 2019 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

November (formerly October) and May of each fiscal year

  • The forecast contains three previous years of actual data

(2016-2018) and five years of forecasted data (2019-2023)

  • 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 Lake

County School Financing District fund

Educating Excellence!

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Executive Overview

  • Solvent through the end of fiscal year 2023 (See line 7.020)
  • Deficit spending is projected to start in fiscal year 2022
  • 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
  • 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, which change with the opening of the two new elementary schools in August 2019 (FY2020).

Educating Excellence!

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Executive Overview

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Revenues vs. Expenditures

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Note: Fiscal years 2016-2018 are actual. Fiscal years 2019-2023 are projected.

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Revenue

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Note: Based on fiscal year 2019 projected revenue.

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Revenue – Major Components

  • General Property-Real Estate: $27,595,604 (57%)
  • Primarily residential community (83.49%)
  • Total valuation for TY2018 was $1,053,471,060 vs.

$1,092,640,400 in TY2008

  • Increasing valuation results in additional revenue only from the

district’s inside millage (4.80 mills) and the substitute levy (4.19 mills, on new construction only)

  • All operating 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 (Collecting at 4.56 mills)

  • TY2018 is a reappraisal year. Valuations increased from

$963,672,210 to $1,053,471,060 or 9.3%

  • Includes changes from new construction,

Board of Revisions, new exemptions, etc.

Educating Excellence!

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Revenue – Major Components

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Current Levies

  • 2018 Tax Year / 2019 Collection Year

Educating Excellence!

Levy Effective Tax Rate Inside Millage 4.80 1976 – Current Expense (33.10 Mills) 11.85 1980 – Current Expense (4.50 Mills) 2.29 1986 – Current Expense (4.90 Mills) 2.72 2009 – Substitute Levy (4.59 Mills)* 4.19 2017 – Current Expense (4.90 Mills) 4.52 Total General Fund Millage 30.37 2016 – Permanent Improvement (2.50 Mills)** 2.31 2016 – Phase I Debt (Originally 1.92 Mills) 1.56 Total Millage 34.24 *Originally a 2004 Five Year Emergency Levy that was converted to a Substitute Levy for tax year 2009. ** Replaced expiring 1.89 mill PI levy and expired 1993 0.85 mill Bond Issue

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Comparison of Residential Tax Rates

Educating Excellence!

District Effective Tax Rate TY2018/CY2019 Wickliffe 52.24 Painesville City* 47.24 Fairport Harbor 47.20 Willoughby-Eastlake 47.05 Kirtland 40.37 Mentor 38.15 Riverside* 34.24 Madison* 32.11 Perry* 21.52 * Effective rates do not include the joint financing district effective tax rate of 2.28 Mills

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Revenue – Major Components

  • Unrestricted Grants-in-Aid: $8,941,969 (19%)
  • State funding formula – funding based on enrollment
  • Formula starts with $6,020 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 21.1% or $1,268 per student before

“guarantee”

  • The district is back on the “guarantee”
  • ODE SFPR May #2 calculates the transitional aid guarantee at

$1,033,624.70

  • Casino tax revenue - $52.00 per student

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Revenue – Major Components

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Enrollment Projection (Headcount)

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Kindergarten Enrollment

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  • District saw an unexpected spike in kindergarten

enrollment in FY2019

  • All-Day kindergarten to begin in FY2020
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Revenue – Major Components

  • Property Tax Allocation: $3,656,656 (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: $4,457,637 (9%)
  • Joint Financing District - $2,090,000
  • In effect through tax year 2019 / collection year 2020 (1st half of FY2021)
  • Non-renewal of this levy would be detrimental!
  • Districts tentatively agreed to new allocation for levy renewal
  • Would result in increased revenue for Riverside
  • Would protect Riverside from future devaluations of the Perry Nuclear Power Plant
  • Pay to Participate fees - $200,591
  • Open Enrollment In - $560,000
  • Classroom fees - $199,718
  • Medicaid Reimbursements - $283,877
  • Expecting $270,531.86 for 2017 cost report settlement (may receive in FY2019)
  • Interest Revenue - $250,000
  • Includes various other revenue streams such as SF14 tuition, excess

cost, shared services, field trips, kindergarten tuition, preschool fees, 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 2019 projected expenditures.

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Expenditures – Major Components

  • Personnel Services: $23,196,864 (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 (especially for

new buildings) and savings from retirements

  • Including all day kindergarten and in house preschool program

Educating Excellence!

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Expenditures – Major Components

  • Employees’ Retirement/Insurance Benefits: $9,950,135

(22%)

  • Projections based on percentage of salaries include:

retirement (14.00%), 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 for FY2019 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: $9,384,481 (21%)
  • Approximately 50% of the costs for purchased services are

for tuition based costs, which includes open enrollment

  • ut ($1,820,000), community school deductions

($860,000), scholarships out ($825,000), and other tuition related items ($1,188,011)

  • 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: 105.254 Out: 294.134 Loss: 188.880 In: 92.716 Out: 301.988 Loss: 209.272

Note: FY2019 based on SFPR May #2 and FY2018 based on SFPR Final #2 payment from ODE.

FY2018 FY2019

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Community School Deduction

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Note: FY2019 based on SFPR September #2 and FY2018 based on SFPR May #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:
  • 2016 Actual: $6,516,309

57.91 Days

  • 2017 Actual: $5,367,589

46.12 Days

  • 2018 Actual: $8,904,643

75.04 Days

  • 2019 Projected: $12,079,860 98.48 Days
  • 2020 Projected: $14,158,893 111.63 Days
  • 2021 Projected: $14,712,473 111.87 Days
  • 2022 Projected: $13,531,871 99.34 Days
  • 2023 Projected: $10,804,586 76.56 Days

Educating Excellence!

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Cash Flow – FY2019 and FY2020

Educating Excellence!

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What Could Change?

  • Revenue:
  • Property Tax Valuations
  • PUPP Valuation Reversal
  • Enrollment Spikes (Fairway Pines - 250+ homes and

Former Leimco Property Development - 150+ homes)

  • Funding Formula Changes (FY2020)
  • Additional funding for wellness and wrap-around

services, Cupp/Patterson Proposal

  • Future Open Enrollment Policies
  • Lake County School Financing District Renewal
  • Expenditures
  • Staffing Levels
  • Health Care Plan Changes
  • Purchased Services (Community Schools, Open

Enrollment)

Educating Excellence!