Transcript Elida Local Schools

Elida Local Schools
Financial Summit III
Report to Stakeholders
Fiscal Year 2007-2008
Joel L. Parker,CPA
Summit Team






















Lynn Metzger, Metzger Financial Services
Bruce Opperman, WLIO
Phillip Morton, Elida Visionaries
Matt Huffman, State Representative
Dennis Swick, Mayor of Elida
Paul Basinger, Township Trustee
Pat Schymanski, Elida Visionaries
Peter Kesler, Ohio Foam Corporation
Cliff Barber, General Dynamics
David Anderson, The State Bank
Max Stover, First Federal Bank
Steve Boroff, Superior Federal Credit Union
Steve Romey, Attorney
Beth Jokinen, The Lima News
Mike Ford, Delphos Herald
Becky Foust, EEA
Sally Ulrich, Elida Board Member
Brenda Stocker, Elida Board Vice President
Don Diglia, Elida Superintendent
Joel Parker, Elida Treasurer
Faith Cummings, Elida NCLB Director
Jo Ellen Miller, Elida Information Director
Goals







Review data on high school project
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
THERE IS NO BUSINESS
LIKE PUBLIC SCHOOL BUSINESS






Ohio Revised Code
No Child Left Behind
Unfunded mandates-HB1
DeRolph case
Collective Bargaining
Tax structure
State
Budget
Levies/Bond Issues
Phantom Revenue
Voters
Raw product - 100%
accepted
Emotional Issues
TYPES OF LEVIES

BOND LEVY – Used to finance permanent
improvements, new construction or
renovation (Per ORC-MAY NOT BE USED FOR
OPERATIONS)

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

OPERATING LEVY-Used for current
operations (can be limited or continuing) can
be renewed or replaced

EMERGENCY LEVY-Used for operations
(limited to 5 years and generates a set amount)
can be renewed but not replaced

RENEW=same effective rate

REPLACE=original millage
ELIDA BUILDING PROJECT
Bond Issue $38,250,000
 NY Presentation
 Standard & Poor’s A+
 Moody’s A3
 2009 Interest Rate 3%
 All bonds have been sold
 6.46 Bond Issue and 1 mill PI Levy
(38,250,000 Bonds + 1,500,000 Interest)

Elida Building Project (continued)
Official Statement






Amount $38,249,986
Date September 4, 2008
Insured rating Standard & Poor’s AAA
and Moody’s Aaa
Issued in amounts of $5,000
Debt schedule 2009 through 2036
Great time to borrow!!
Bond Proceeds Invested








Per Ohio Revised Code
Per Elida Investment Policy
Omar Ganoom, Investment Banker
Federal Home Loan Banks/Mortgage Corp
Federal National Mortgage Association
Government and Agency Mutual Funds
Interest Income from May 2008 to April
2009 - $926,874
No Loss of Principal
Bid Process







Follow Ohio Revised Code 3313.46
Repair/Improvements over $25,000
Advertise for 2 weeks
Bid Bond included
May reject all bids
Lowest Responsible Bid
Audited every year
HS Building Contractor List





Architect-Garmann Miller, Minster OH
Construction Manager, Touchstone CPM, Lima,
OH
Sitework/Road - $2,182,700 RD Jones
Excavating, Harrod, OH
Geothermal Loop – Middleton Geothermal
Services LLC - $667,766 Akron, OH
Builder’s Risk Insurance - $23,689 Webb
Insurance, Lima, OH
OSFC Ranking





Year Rank
2006 386
2007 393
2008 399
2009 414
State Share
36%
35%
34% (Locked Rate)
32%
Legislative Concerns/History











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
HOW MANY CLIENTS?






Students
Tax payers
Boosters
Parents
Business partners
Local officials
WHO ARE WE?







Students – 2,420
Teachers- 146
Nurse –1
Guidance – 4
Professionals – 17
Secretaries – 16
Aides – 14
Maintenance
–2
Custodial – 14
Food Service – 25
Bus Drivers – 31
Asst Tech Co-1
 Total 271
4 Buildings
 81 square miles
Average Teacher Experience




EHS – 14.7 years
EMS – 15.5 years
EES – 15.6 years
EEK – 10.1 years
PERFORMANCE INDICATORS







Carry-over Margin 1-5%
Strength of Carry-over - 60 day
85% Rule on Salaries and Benefits
Debt to Total Assets
Residential Tax Rate
Per Pupil Spending (vs. other schools)
ADM Per Pupil Spending
AUDIT LIST





Annual Financial Audit by Auditor of State
ADM Audit by ODE(every 5 years)
Staffing Audit by ODE(5 years ago)
Curriculum Review by ODE
Annual Facility Inspection (Jared’s Law)
76 Day Cash Balance!
Cash Graph
6,000,000
5,000,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
4,000,000
3,000,000
2,000,000
1,000,000
Ja
nu
Fe ary
br
ua
ry
M
ar
ch
A
pr
il
M
ay
Ju
ne
Ju
l
A y
S ugu
ep
te s t
m
b
O er
ct
N obe
ov
em r
D
ec ber
em
be
r
General Fund Cash
7,000,00060 DAY CASH BALANCE ALMOST A REALITY
Month
June 30 Carry-Over *Gaining Strength*










1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$ 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
21 days
23 days
17 days
18 days
8 days
21 days
39 days
53 days
68 days
76 days
WHAT CHANGED?











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
Health Insurance






1/1/09 Medical Rate Increase 15%
1/1/09 Dental Rate Increase 20%
1/1/09 New Plan MDHP Developed
Meeting this year to introduce HDHP plan
Continue discussions on spousal
coordination of benefits
What are you doing/seeing???
What’s Else Can We Do?










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








Turn down
thermostats
Change drug
company
No health ins R/R
New health plans
Auto lights switches
Bid projects
MAC Grants
Early bus buy
Revenue Chart FYD as of June 30, 2008
General Fund
8%
8%
Real Estate
0%
42%
Personal
Property
Foundation
Restricted Aid
Homestead/Roll
Other
38%
4%
Expense Chart FYD as of June 30, 2008
1%
0%
0%
2%
4%
Salaries
20%
Retire/Ins
55%
Purchased
Service
Supplies
Capital Outlay
18%
Debt-Prin.
Debt-Int.
Other
General Fund Expenditures
Elida Transportation Data
500000
Amount
400000
300000
200000
Expended
Gallons
100000
Miles
0
1
2
3
4
5
6
7
8
Fiscal Year
2001
2002
2003
2004
2005
2006
2007
2008
Expended
86,985
61,233
70,591
66,988
92,372
144,618
127,159
193,731
Gallons
83,123
67,209
63,354
60,504
57,217
62,220
64,631
62,355
Miles
428,886
440,673
415,682
376,971
372,549
402,349
398,107
393,866
Fiscal Year
FOOD SERVICE
Fiscal Year
2000
2001
2002
2003
2004
2005
2006
2007
June
2008
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
Total
847,629
820,631
795,594
865,153
843,117
765,663
907,148 861,670
945,933
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
Total
818,693
848,406
897,183
885,189
893,162
760,571
756,256 849,843
858,889
28,936
(27,775)
(101,589)
(20,036)
(50,045)
5,092
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
Ending Balance
140,538
112,763
11,174
39,774
29,729
88,818
239,710 251,538
328,582
Net Gain/(Loss)
150,892
11,827
87,044
Program Spending
REPORT TO STAKEHOLDERS
General Fund Revenue
Local Revenue
Real Estate Taxes
Personal Property Taxes
General Fund Expenditures
$
Total Local
State Revenue
Foundation
Homestead Rollback
8,439,846
826,455
42%
4%
9,266,301
46%
7,574,892
1,533,802
-
Total State
9,108,694
Instructions
Regular
Special Education
Vocational
$
11,157,647
1,421,907
1,548
57%
7%
0%
Total Instructions
12,581,102
64%
Supporting Services
Pupil Support**
Instr. Staff Support##
Administration
Transportation
46% Business/Maintenance
659,045
526,551
1,307,607
1,359,025
2,442,644
3%
3%
7%
7%
13%
6,294,872
32%
Extracurriculars
490,641
3%
Debt Requirements
Principal/Interest
69,616
0%
19,436,231
100%
38%
8%
Total Support Svcs.
Other
Total Revenue
$
1,640,547
8%
20,015,542 100%
Total Expenditures
$
5 Year Forecast
Fiscal Year
2006
1.010
1.020
1.030
1.035
1.040
1.050
1.060
Revenues
General Property Tax (Real Estate)
Tangible Personal Property Tax
Income Tax
Unrestricted Grants-in-Aid
Restricted Grants-in-Aid
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
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
3.010
3.020
3.030
3.040
3.050
3.060
7.010
7.020
Fiscal Year
2007
Fiscal Year
2008
$7,354,275
1,531,472
$8,177,224
1,230,346
$8,439,846
826,456
7,434,281
126,781
913,801
1,191,073
7,567,028
80,380
1,186,853
1,327,283
7,511,293
63,599
1,533,802
1,640,547
18,551,683
19,569,114
20,015,543
67,214
527
67,741
55,511
9,700
65,211
12,000
18,619,424
19,634,325
20,027,543
9,731,655
3,189,571
3,445,327
631,558
463,637
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
10,511
50,883
52,924
2,248
309,612
18,734
311,736
16,692
287,247
17,784,119
18,781,647
19,436,233
55,511
2,000
16,398
12,000
55,511
2,000
16,398
17,839,630
18,783,647
19,452,631
779,794
850,678
574,912
Cash Balance July 1 - Excluding Proposed
Renewal/Replacement and New Levies
1,865,899
2,645,693
3,496,371
Cash Balance June 30
2,645,693
3,496,371
4,071,283
AUDIT REPORT






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
Salary Data – Get the Facts!!
Fiscal Year
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-2010
Average
Classified &
Teaching
5%
4%
1.5%
3%
3.5%
3.5%
3.5%
3.5%
3.44%
Admin.
6%
0%
0%
3%
3.5%
3.5%
3.5%
3.5%
2.88%
Health Ins.
50/50
50/50
50/50
The Lima News-April 1, 2007







Top 25
Lima Total $928,919(7 of top 25)
Shawnee Total $915,855(5 of top 25)
Bath Total $836,848 (5 of top 25)
Apollo Total $829,174 (1 of top 25)
Elida Total $760,064 (1 at 16th)
Delphos Total $753,602 (3 of top 25)
The Lima News April 1, 2007Superintendent Salary Data













Lima $115,269
Crestview $108,159
Allen East $102,019
Delphos $101,457
Auglaize ESC $96,600
New Bremen $93,767
Lincolnview $93,711
Putnam ESC $93,565
Waynesfield $92,426
Elida $91,628
Bluffton $88,642
Allen ECS $81,946
Miller City $80,458
How does our 2007
residential tax rate stack up?










Residential Tax Rate 2007
32.61 Bath
32.16 Lima
31.20 Allen East
30.59 Shawnee
28.49 Perry
27.93 Bluffton (Plus ½% income tax)
27.37 Elida
27.27 Spencerville(Plus 1% income tax)
26.80 Delphos
Comparison Group-Administrative Expense Per Pupil
ADMINISTRATIVE EXPENSES
1,400
1,200
1,000
800
600
400
200
-
i ty
e
tain
on
nt
mo
da
El i
alk
rw
No
on
use
Wa
ton
ng
lmi
Wi
Fre
C
na
ba
l lef
Be
Ur
fi n
Tif
on
eg
Or
ke
La
nce
fi a
De
y
ne
Si d
ll e
rvi
Or
n
l eo
po
ia
Na
lph
de
h ila
wP
Ne
ia
t av
Ba
ath
He
a
nn
ve
Ra
ke
La
iel d
e ff
Sh
on
l int
rt C
Po
on
nd
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
-
N
N
k
a
al
hi
w
lp
or
de
ila
Ph
ew
ke
La
a
id
El
a
vi
ta
Ba
on
gt
in
i lm
W
on
se
au
ne
W
ai
nt
fo
l le
Be
n
ffi
Ti
n
eo
ol
ap
N
C
n
go
re
n
to
l in
na
en
av
a
an
rb
th
ea
H
on
nd
Lo
e
i ll
rrv
O
t
on
em
Fr
ey
dn
ke
Si
La
ld
fie
ef
Sh
e
nc
ia
ef
i ty
C
D
U
R
O
rt
Po
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
ba
e
tain
on
Ur
l lef
Be
ke
La
ton
ng
lmi
Wi
ia
t av
Ba
alk
rw
No
on
eg
Or
y
ne
Si d
n
o
l int
ia
rt C
lph
Po
de
h ila
wP
Ne
nce
fi a
ke
De
La
iel d
e ff
Sh
ll e
rvi
Or
fi n
Tif
n
l eo
po
Na
da
El i
ath
He
on
use
Wa
STATE FUNDING FLAWS








Over-reliant on property taxes
No inflationary growth on property taxes
Phantom Revenue
Unfunded mandates
System too complicated
Many man hours on
levies(2000,2003,2004,2005,2006,2007,2008)
Schools get viewed as “Big Government Waste”
One of the few ways voters can express
frustration with taxes
PHANTOM REVENUE






Who is it??
State assumes we receive 23 mills from
local tax payers
Elida actually receives 20 mills
This 3 mill gap is a huge problem
The State deducts 3 more mills than we
actually receive
See SF3 handout (making sausage)
State Aid-Short Version
$5,732 x 2,416.91=13,853,728.12
 Less 8,388,445(.023 x364,714,999)
_______________



$5,465,283
No increase see line 19 decrease
23 Mill Charge- Off





FY
FY
FY
FY
FY
2005
2006
2007
2008
2009
$7,383,852
$7,870,054
$8,226,036
$8,317,517
$8,388,445
State Aid
FY
FY
FY
FY
FY
FY
2006
2007
2008
2009
2010
2011
$7,520,508
$7,504,941
$7,502,152
$7,502,152
$7,502,152
$7,352,109
TAX BASE
Tax Valuations
2001
Values
2002
Values
2003
Values
2004
Values
2005
Values
2006
Values
2007
Values
2008
Values
2002
2003
2004
2005
2006
2007
2008
2009
Ag/Residential
Commercial/Industrial
Sub Total
179,161,050
72,432,590
251,593,640
182,378,550
73,126,890
255,505,440
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
Utility Real
Total Real
43,010
251,636,650
45,410
255,550,850
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
9,296,660
40,797,097
50,093,757
9,603,630
39,268,817
48,872,447
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
301,730,407
304,423,297
343,006,982
352,679,500
347,556,892
365,306,588
355,724,125
355,199,360
20,946,010
20,946,010
20,946,010
24,203,770
24,291,910
69,828,126
69,828,126
69,828,126
5.40
14.60
5.80
0
0.90
5.40
14.60
5.70
0
0.90
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
26.70
26.60
25.82
25.04
27.68
27.14
27.37
34.73
Collected Year
Utility Personal
Tangible Personal
Total Personal
Total All
Exempt Values
Inside Millage
Outside - Continuing
Emergency Levy
Permanent Improvement
Bond Levy
Total Rate
Full
5.40
20.10
7.35
32.85
STATE BUDGET BREAKDOWN
Primary & Secondary Education 35%
 Medicaid 20%
 Colleges 13%

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
FY 2000-01
FY 2001-02
FY 2002-03
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
Total
34,144
58,311
59,248
91,489
80,184
67,983
69,260
661,651
PI Repairs-10 years
414,235
Total FY 96-07 HS
1,075,886
12 year Average
89,657.17
15,890
13,894
23,447
26,079
36,326
18,012
114,049
379,250
2,141
5,937
7,003
6,084
56,356
31,475
32,411
214,687
26,167
8,361
16,811
31,830
17,054
33,381
13,178
271,949
DISTRICT WIDE
REPAIRS
Cost per building/per student
Building Data
FY 06-07
Gomer
Repairs
Heat
13,178
33,361
Elida High
Repairs
Heat
69,260
Heat
122,339
102,557
Electric
9,524
Electric
Water
2,215
Water
EMS
25,305
EE
24,941
GK
33,361
Total
83,607
EHS
122,339
8,951
Difference
Total
58,278
Total
303,107
ADM
171
ADM
820
Per Student
341
Per Student
370
Elida Ele.
Repairs
32,411
Elida Middle
Repairs
Heat
24,941
Heat
25,305
Electric
31,015
Electric
65,598
114,049
38,732
Electric
EMS
EE
GK
Total
65,598
31,015
9,524
106,137
EHS
102,557
Difference
(3,580)
Square ft.
Water
11,405
Water
7,692
Total
99,772
Total
212,644
ADM
888
ADM
581
EMS
86,283
EE
67,642
GK
47,320
Total
201,245
EHS
135,117
Difference
Per Student
112
Per Student
366
(66,128)
Levy Timeline-Future Dates





March 2008 Bond Issue & PI
Fall 2009, 2010 Renew Emergency Levy
Fall 2012, 2013 Renew PI Levy
2012-2013 OSFC Issue
2014,2015 Renew Emergency Levy
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
5 Year Goals









Evaluate HB 1 and unfunded mandates
Continue to be lean
Continue to monitor health insurance
(Health Savings Accounts, Spousal language, Mandate
Generic Drugs)…impact of state pool
Enhance customer service
Maintain 0-2% profit margin
Continue to review staffing needs
Monitor new legislation
Diversify revenue streams(conversation)
Others ???? (group discussion)
Items of Concern











State Budget Cuts-HB 1
Health Care/BWC Increases
Utility Increases
Loss of tax valuation
Special Education Increases
Price of diesel
Price of wheat and food supplies
Loss on transportation
Loss to ESC’s
Fund All-day K
Fund Pre-school program
Building Timeline (Estimate)






March 4, 2008 Pass Bond Issue
March 13, 2008 1ST Meeting with
Architect
Early Spring 2009 – Complete Drawings
Late Spring 2009 – Bid out project
May 2009 – Break ground
Summer 2011 – Move in!
Meet the Team




Architect – Garmann Miller, Minster Ohio
Construction Management – Touchstone
CPM, Lima Ohio
Investment Banker – Omar Ganoom,
Columbus, Ohio
Construction Attorney – Bricker & Eckler,
Columbus, Ohio