Transcript Elida Local Schools

Elida Local Schools
Financial Summit IV
Report to Stakeholders
Fiscal Year 2008-09
Joel L. Parker,CPA
Goals
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Review data on the emergency levy
Review the financial condition of Elida Local
Schools
Expand the knowledge base on school funding
issues
Review data for future financial planning
Exchange ideas on “best practices”
Encourage dialogue on future economic trends
Have summit representative report to the Board
of Education on current condition
TYPES OF LEVIES
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BOND LEVY – Used to finance permanent
improvements, new construction or
renovation (Per ORC-MAY NOT BE USED FOR
OPERATIONS)
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PERMANENT IMPROVEMENT LEVY- Used
for repairs/fixed assets with a useful life
of 5 years (can be limited or continuing) and
can be renewed or replaced
TYPES OF LEVIES
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OPERATING LEVY-Used for current
operations (can be limited or continuing) can
be renewed or replaced
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EMERGENCY LEVY-Used for operations
(limited to 5 years and generates a set amount)
can be renewed but not replaced
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RENEW=same effective rate
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REPLACE=original millage
History – Emergency Levy
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Passed May 3, 2005
7.7 mills
5 years
$2.7 million(increase $996,000)
Restore All-day Kindergarten
Restore EMS Art
Restore guidance services at EE and EMS
Reduce pay to participate
Provide additional buildings/grounds maint.
Renew Emergency Levy
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May 4, 2010
7.2 mills
5 years
$2.7 million
NO INCREASE IN TAXES
NO ADDITIONAL REVENUE
Critical to everyday operations
13% of operating budget = 50 people
Renewal Levy - Facts
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We continue to work lean
We recognize the state of the economy
We make no five year promise
State and local revenue are shrinking
Good stewards
Concerns
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State budget gap- $5-$10 billion
Projected loss to Elida FY 12- $1.6 to
$2.1 million(what is coming?)
Tax delinquencies
Loss in state aid
Tax payer still hurting from recession
Unfunded mandates-HB 1
WHAT HAVE WE DONE TO GET LEAN?
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Staff cuts
Administrative cuts $239,155
Administrative Wages-0% increase 2 yrs
Streamlined food service
Moved staff to PPO insurance plan
Moved to pay to participate
Passed a levy in 2005 to bring back specific
programs
Reduce bus fuel consumption
Think long term
Savings on Retire/Rehire
Sharing on health premiums
Continued
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Withdrawal from ESC Alternative Program
- $7,000
Not replace mechanic - $58,472
Hire Psychologist - $9,923
2004-05 one less teacher at EE
2005-06 one less teacher at EE and HS
Partner with WCLA on software $14,000
Review SF6 billing - $24,000
What have we done to get lean?
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Review Staffing
Meal Policy
American Express
Bus Idle
Share Ins Increases
Bulk Paper
Bid Property/Liability
Diesel Grant
Safe Route Grant
Dir dep/email PO
Hire maint. person
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Turn down
thermostats
Change drug
company
No health ins R/R
New health plans
Auto lights switches
Bid projects
MAC Grants
Early bus buy
What have you done lately?
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Review set points $74,000
Reduce Teacher Academy $65,000
Re-route buses(4) $84,444
Reduce special ed teacher $76,102
What will you do next year?
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Consolidate choir position
Reduce MS teacher-(technology class)
Move Central Office secretary to HS
Reduce building budget
Lean on grant $ for technology
Work on reductions in health care
Reduce bus route
Review staffing
Legislative Concerns/History
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HB 920 Tax Reduction Factor
HB 152 Phantom Revenue
Budget Reduction Order
HB 95 Inventory Tax Phase Out
HB 282 Favored Charter Schools
HB 412 Mandated spending on
repairs/educational supplies
SB 55 Increase in testing requirements
NCLB Increase in testing
2008 State Budget Cuts
2009 State Budget Cuts
HB 1 (Unfunded mandates)
Next State Budget $5-$10 billion hole
Fund Raising Efforts
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Fieldhouse Renovation $350,000
Concession Building $150,000
Locker/weight room $50,000
WHO ARE WE?
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Students – 2,431
Teachers- 149
Nurse –1
Guidance – 4
Professionals – 17
Secretaries – 14
Aides – 6
Maintenance
–2
Custodial – 14
Food Service – 27
Bus Drivers – 31
Asst Tech Co-1
 Total 266
4 Buildings
 81 square miles
PERFORMANCE INDICATORS
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Carry-over Growth 1-5%(update)
Strength of Carry-over - 60 day(update)
85% Rule on Salaries and
Benefits(update)
Review Levy Cycles
Debt to Total Assets
Residential Tax Rate
Per Pupil Spending (vs. other schools)
74 Day Cash Balance!
Cash Graph
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Ja
nu
Fe ary
br
ua
ry
M
ar
ch
Ap
ril
M
ay
Ju
ne
Ju
Au ly
Se gu
pt st
em
b
O er
ct
N obe
ov
em r
D
ec ber
em
be
r
General Fund Cash
7,000,000
60 DAY CASH BALANCE ALMOST A REALITY
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
June 30 Carry-Over: A New Cycle
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1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 936,422
$1,048,819
$ 758,675
$ 821,146
$ 360,933
$ 967,429
$1,865,900
$2,645,703
$3,496,376
$4,071,288
$4,127,565
$3,656,565
$2,492,978
$590,254
$(1,718,527)
$(4,445,843)
21 days
23 days
17 days
18 days
8 days
21 days
39 days
53 days
68 days
76 days
74 days
64 days
43 days
10 days
-30 days
-78 days
Health Insurance
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1/1/09 Medical Rate Increase 15%
1/1/09 Dental Rate Increase 20%
1/1/09 New Plan MDHP Developed
1/1/10 New High Deductible Plan
1/1/10 Medical Rate Increase 20%
1/1/10 Dental Rate Increase 20%
Meeting this year to introduce HDHP plan
Continue discussions on spousal coordination of
benefits
What are you doing/seeing???
Elida Local Schools - Data Graph
12,000,000
Dollars
10,000,000
Tax Revenue-Real
State Aid
Interest Income
Salaries
Benefits
Utilities
8,000,000
6,000,000
4,000,000
2,000,000
2005 2006 2007 2008 2009 2010
Fiscal Year
Revenue Chart FYD as of June 30, 2009
General Fund
9%
Real Estate
9%
Personal Property
0%
42%
State Foundation
State-Restricted Aid
State Reimb.Homestead/Rollback
Other
37%
3%
Expense Chart FYD as of June 30, 2009
2%
0%
0%
2%
4%
Salaries
20%
53%
Retirement &
Insurance
Purchased
Service
Supplies
Capital Outlay
19%
Debt-Prin.
Debt-Int.
Other
General Fund Expenditures
Elida Local Schools - Data Graph
12,000,000
Dollars
10,000,000
Tax Revenue-Real
State Aid
Interest Income
Salaries
Benefits
Utilities
8,000,000
6,000,000
4,000,000
2,000,000
2005 2006 2007 2008 2009 2010
Fiscal Year
Elida Local Schools
Data Graph
2005
Tax Revenue-Real 6,852,071
State Aid
7,502,306
Interest Income
61,043
Salaries
9,322,548
Benefits
3,144,906
Utilities
346,954
2006
2007
2008
2009
2010
7,354,275 8,177,224 8,439,846 8,374,682 8,389,617
7,434,281 7,567,028 7,511,293 7,538,352 7,463,806
120,591
181,360 240,122
109,127
78,001
9,731,655 10,221,067 10,429,896 10,852,446 11,269,418
3,189,571 3,421,171 3,548,084 3,736,686 4,103,825
423,099
425,259 481,129
435,568
425,259
FOOD SERVICE
Fiscal Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Revenue
Federal
State
Local
243,346
10,072
594,211
234,529
10,092
576,010
223,494
10,756
561,344
278,530
10,706
575,917
243,644
12,630
586,843
239,122
13,207
513,334
320,161 279,240
11,028
10,954
575,959 571,476
386,010
11,001
548,922
430,062
11,507
559,512
Total
847,629
820,631
795,594
865,153
843,117
765,663
907,148 861,670
945,933
1,001,081
Expenses
Salaries
Fringes
Purchased Service
Supplies
Equipment
325,736
134,816
9,128
339,680
9,333
332,741
156,892
8,421
338,004
12,348
345,760
198,125
5,285
327,304
20,709
353,996
211,198
5,011
314,984
-
350,154
245,929
4,507
292,572
-
276,396
181,288
7,022
279,624
16,241
283,380 313,751
153,651 179,800
11,485
13,657
307,740 342,635
-
317,182
171,619
16,928
351,055
2,105
335,930
179,011
15,275
390,685
-
Total
818,693
848,406
897,183
885,189
893,162
760,571
756,256 849,843
858,889
920,901
28,936
(27,775)
(101,589)
(20,036)
(50,045)
5,092
87,044
80,180
Plus Advances
Plus Beginning Bal.
111,602
140,538
112,763
48,636
11,174
40,000
39,774
54,000
29,726
88,818 239,711
(10,000)
251,538
(15,000)
328,582
Ending Balance
140,538
112,763
11,174
39,774
29,729
88,818
239,710 251,538
328,582
393,762
Net Gain/(Loss)
150,892
11,827
Program Spending
General Fund Revenue
Local Revenue
Real Estate Taxes
Personal Property Taxes
General Fund Expenditures
$
Total Local
8,374,681
635,757
9,010,438
State Revenue
Foundation
Homestead Rollback
7,614,418
1,905,561
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Total State
9,519,979
Instructions
41% Regular
3% Special Education
Vocational
44%
Total Instructions
$
11,703,262
1,544,590
2,281
58%
8%
0%
13,250,133
64%
679,166
512,129
1,356,766
1,246,318
2,523,631
3%
3%
7%
6%
13%
6,318,010
31%
Extracurriculars
517,228
3%
Debt Requirements
Principal/Interest
69,616
0%
20,154,987
100%
Supporting Services
Pupil Support**
Instr. Staff Support##
Administration
Transportation
47% Business/Maintenance
37%
9%
Total Support Svcs.
Other
Total Revenue
$
1,906,096
9%
20,436,513 100%
Total Expenditures
$
Elida Local Schools
Allen County
Schedule of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2007, 2008 and 2009 Actual;
Forecasted Fiscal Years Ending June 30, 2010 Through 2014
Actual
Fiscal Year
2007
1.010
1.020
1.030
1.035
1.040
1.045
1.050
1.060
Revenues
General Property Tax (Real Estate)
Tangible Personal Property Tax
Income Tax
Unrestricted State Grants-in-Aid
Restricted State Grants-in-Aid
Restricted Federal Grants-in-Aid - SFSF
Property Tax Allocation
All Other Revenues
1.070 Total Revenues
2.010
2.020
2.040
2.050
2.060
2.070
Other Financing Sources
Proceeds from Sale of Notes
State Emergency Loans and Advancements (Approved)
Operating Transfers-In
Advances-In
All Other Financing Sources
Total Other Financing Sources
2.080 Total Revenues and Other Financing Sources
3.010
3.020
3.030
3.040
3.050
3.060
4.010
4.020
4.030
4.040
4.050
4.055
4.060
4.300
Expenditures
Personal Services
Employees' Retirement/Insurance Benefits
Purchased Services
Supplies and Materials
Capital Outlay
Intergovernmental
Debt Service:
Principal-All (Historical Only)
Principal-Notes
Principal-State Loans
Principal-State Advancements
Principal-HB 264 Loans
Principal-Other
Interest and Fiscal Charges
Other Objects
4.500 Total Expenditures
5.010
5.020
5.030
5.040
Other Financing Uses
Operating Transfers-Out
Advances-Out
All Other Financing Uses
Total Other Financing Uses
5.050 Total Expenditures and Other Financing Uses
6.010 Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses
7.010 Cash Balance July 1 - Excluding Proposed
Renewal/Replacement and New Levies
Fiscal Year
2008
Forecasted
Fiscal Year
2009
Average
Change
Fiscal Year
2010
Fiscal Year
2011
Fiscal Year
2012
$8,177,224
1,230,346
$8,439,846
826,456
$8,374,682
635,757
1.2%
-28.0%
$8,309,000
440,000
$6,973,000
340,000
$5,646,000
240,000
7,567,028
80,380
7,511,293
63,599
7,538,352
76,062
-0.2%
-0.6%
1,533,802
1,640,547
1,905,561
1,703,588
19,569,114
20,015,543
20,234,002
26.7%
13.7%
1.7%
6,865,484
51,720
475,613
2,200,000
1,775,000
6,865,484
50,000
1,186,853
1,327,283
6,978,484
51,720
475,613
2,100,000
1,750,000
20,104,817
18,680,817
16,901,484
55,511
9,700
65,211
12,000
41.6%
256,647
25,000
25,000
12,000
31,398
202,510
233,908
883.8%
256,647
25,000
25,000
19,634,325
20,027,543
20,467,910
2.1%
20,361,464
18,705,817
16,926,484
10,221,067
3,421,171
3,707,597
738,752
311,707
10,429,896
3,548,084
3,916,011
796,835
388,544
10,852,446
3,736,686
4,083,617
717,250
381,339
3.0%
4.5%
5.0%
-1.1%
11.4%
11,269,418
4,103,825
4,110,000
750,000
200,161
11,403,451
4,332,927
4,125,000
650,000
150,000
11,539,092
4,579,423
4,150,000
675,000
175,000
50,883
52,924
54,985
4.0%
57,791
60,001
62,051
18,734
311,736
16,692
287,247
14,631
314,035
-11.6%
0.7%
12,318
303,944
10,025
315,000
7,642
320,000
18,781,647
19,436,233
20,154,989
3.6%
20,807,457
21,046,404
21,508,208
2,000
16,398
256,647
1092.5%
25,000
25,000
25,000
2,300,000
1,800,000
2,000
16,398
256,647
1092.5%
25,000
25,000
25,000
18,783,647
19,452,631
20,411,636
4.2%
20,832,457
21,071,404
21,533,208
850,678
574,912
56,274
-61.3%
2,645,694
3,496,372
4,071,284
24.3%
470,9934,127,558
2,365,587-
4,606,724-
3,656,565
1,290,978
Special Education Costs
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FY 07 $1,310,212
FY 08 $1,421,808
FY 09 $1,544,590
FY 2008
FY 08 YTD
June
FY 08 YTD
June
FY 09 YTD
$8,439,846
$8,439,846
$8,374,681
(65,165)
-0.77%
826,455
826,455
635,757
(190,698)
-23.07%
7,511,292
7,511,292
7,538,353
27,061
0.36%
63,600
63,600
76,065
12,465
19.60%
Homestead & Rollback
1,533,802
1,533,802
1,905,561
371,759
0.00%
Other Revenues
1,640,547
1,640,547
1,703,586
63,039
3.84%
Revenue
Real Estate
Personal Property
Unrestricted State Aid
Restricted Grants - State
FY
Difference
Percent
Change
Sale of Notes
-
-
-
-
0.00%
Transfers
-
-
-
-
0.00%
Advances
All Other Sources
Total
Expenditures
Personnel Services
12,000
-
12,000
-
31,398
19,398
0.00%
202,510
202,510
0.00%
20,027,542
20,027,542
20,467,911
440,369
10,429,893
10,429,893
10,852,446
422,553
4.05%
Retirement/Insurance Benefits
3,548,085
3,548,085
3,736,685
188,600
5.32%
Purchased Services
3,916,011
3,916,011
4,083,616
167,605
4.28%
Supplies and Materials
796,835
796,835
717,250
(79,585)
-9.99%
Capital Outlay
388,546
388,546
381,339
(7,207)
-1.85%
Debt Service - Principal
52,924
52,924
54,985
2,061
3.89%
Debt Service - Interest
16,692
16,692
14,631
(2,061)
287,246
16,398
287,246
16,398
314,035
256,647
19,452,630
19,452,630
20,411,634
574,912
574,912
56,277
3,496,376
3,496,376
4,071,288
$4,071,288
$4,071,288
$4,127,565
Other
Transfers
Advances
Totals
Revenue Over/(Under) Exp
Opening Balance
Ending Balance
26,789
240,249
-12.35%
9.33%
0.00%
0.00%
AUDIT REPORT
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Performed every year
Cost to taxpayers $16,000
Cash basis (saves taxpayers $10,000$13,000 each year)
Tests are performed on accounts
payable, payroll, compliance with ORC,
fund raising, athletics, food service,
grants, etc.
Clean opinion
No adjustments
Comparison Group-Administrative Expense Per Pupil
ADMINISTRATIVE EXPENSES
1,400
1,200
1,000
800
600
400
200
-
n
eo
us
Wa
fi n
Tif
da
El i
ton
i ng
lm
Wi
e
nc
fi a
De
alk
nt
mo
rw
No
Fre
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ke
La
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f on
l le
Be
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Si d
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eg
Or
C
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ath
He
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Ra
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rt C
ia
Po
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Ph
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n
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e
Na
ak
dL
iel
e ff
Sh
ll e
rvi
Or
on
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Lo
Administration: Salaries for administrators, office staff, and office supplies
Comparison Group-Expense Per Pupil
12,000
10,000
8,000
6,000
4,000
2,000
-
a
hi
lp
de
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Ph
ew
N
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au
W
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fie
ef
Sh
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C
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O
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Comparison Group-Report Card Data
30
25
20
15
10
5
-
on
nd
Lo
a
nn
ve
Ra
nt
mo
Fre
y
Ci t
na
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Ur
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Be
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Wi
on
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Po
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Si d
La
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Sh
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Or
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Or
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No
State Aid
FY
FY
FY
FY
FY
FY
FY
2006
2007
2008
2009
2010
2011
2012
$7,434,281
$7,567,028
$7,511,293
$7,502,152
$7,454,097
$7,352,109
$5,079,869????
TAX BASE
Tax Valuations
2003
Values
2004
Values
2005
Values
2006
Values
2007
Values
2008
Values
2009
Values
2004
2005
2006
2007
2008
2009
2010
Ag/Residential
Commercial/Industrial
Sub Total
213,179,340
87,268,820
300,448,160
216,149,940
90,926,040
307,075,980
219,179,010
91,884,270
311,063,280
240,726,340
97,276,200
338,002,540
243,660,870
100,017,980
343,678,850
246,525,140
101,438,990
347,964,130
244,378,910
108,803,850
353,182,760
Utility Real
Total Real
47,120
300,495,280
47,890
307,123,870
31,820
311,095,100
21,120
338,023,660
21,590
343,700,440
19,340
347,983,470
22,190
353,204,950
9,517,850
32,993,852
42,511,702
9,280,790
36,274,840
45,555,630
8,795,910
27,665,882
36,461,792
8,919,930
18,362,998
27,282,928
6,906,750
5,116,935
12,023,685
7,215,890
7,215,890
7,471,370
7,471,370
343,006,982
352,679,500
347,556,892
365,306,588
355,724,125
355,199,360
360,676,320
20,946,010
24,203,770
24,291,910
69,828,126
69,828,126
69,828,126
29,657,730
Collected Year
Utility Personal
Tangible Personal
Total Personal
Total All
Exempt Values
Emergency
Inside Millage
Outside - Continuing
Emergency Levy
Permanent Improvement
Bond Levy
Total Rate
Full
5.40
20.10
7.35
32.85
2,704,741
5.40
14.60
5.00
0
0.82
5.40
14.64
5.00
0
0.00
5.40
14.64
7.64
0
0.00
5.40
14.60
7.14
0
0.00
5.40
14.62
7.35
0
0.00
5.40
14.60
7.34
0.999
6.39
5.40
14.785
7.24
1
6.56
25.82
25.04
27.68
27.14
27.37
34.73
34.985
STATE BUDGET BREAKDOWN
Primary & Secondary Education 35%
 Medicaid 20%
 Colleges 13%

Real Estate Taxes





FY
FY
FY
FY
FY
06
07
08
09
10
$7,354,275
$8,177,224
$8,439,846
$8,374,682
$8,309,000
Cost per building/per student
FY 08
Gomer
FY 09
Elementary
FY 08
FY 09
Electric
Gas
Water/Sewer
9,665
47,672
9,069
9,945
47,958
7,011
Electric
Gas
Water/Sewer
32,267
27,336
9,670
35,860
22,893
12,223
Total
66,406
64,914
Total
69,273
70,976
Students
176
171
Students
892
936
Per Student
377
380
Per Student
78
76
FY 08
Electric
Gas
Water/Sewer
Middle
FY 09
63,195
28,473
8,514
72,505
21,539
7,749
100,182
101,793
Students
538
553
Per Student
186
184
Total
Fieldhouse
FY 08
FY 09
Electric
Gas
Water/Sewer
13,731
30,273
59
14,400
24,550
278
Total
44,063
39,228
FY 08
High
FY 09
Electric
Gas
Water/Sewer
41,508
124,803
10,346
42,378
83,396
8,643
Total
176,657
134,417
Students
777
771
Per Student
227
174
State Budget Concerns-FY 2010








CAT $ 1.3 billion new
Corporate Franchise Tax 1.1 billion loss
Tangible Property Tax 1.6 billion loss
Income Tax 2.1 billion loss
NET LOSS 3.5 billion in state revenue
10 year job loss – 210,000 manufacturing
10 year job loss- 4,000 Allen County
BUDGET GAP $5-$10 BILLION????
Levy Timeline-Future Dates





May 2010 Renew Emergency Levy
Fall 2012, 2013 Renew PI Levy
2012, 2013 Levy Discussion
2012-2013 OSFC Issue
2014,2015 Renew Emergency Levy
Open Enrollment




FY
FY
FY
FY
07
08
09
10
In
In
In
In
$535,000 Out $1.3 million
$597,000 Out $1.4 million
$912,000 Out $1.5 million
$1.2 million Out $1.4 million
Funding the Future-Diversify
Revenue Stream




Medina-1st in state to pass Sales Tax for
schools
Income Tax-Earned income only
Continue to communicate-always in levy
mode
Strategic Planning on future levies
5 Year Goals










Evaluate HB 1 and unfunded mandates
Study state budget gap($10 billion???)
Continue to be lean/reduce spending
Continue to monitor health insurance
(Health Savings Accounts, Spousal language, Mandate
Generic Drugs)…impact of state pool
Enhance customer service
Maintain (–6%-0%) profit margin
Continue to review staffing needs
Monitor new legislation
Diversify revenue streams(conversation)
Others ???? (group discussion)
Items of Concern










Hole in state budget
Loss of state income tax
Loss in homestead/rollback reimbursement
Tax delinquencies
Unemployment
Unfunded mandates
Health Care/BWC Increases
Utility Increases
Loss of tax valuation
Special Education Increases