Riverside Schools Five Year Forecast (5/27/2009)

8/14/2019 Riverside Schools Five Year Forecast (5/27/2009)

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ttp://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML

Painesville Township Five Year Forecast for Fiscal Year 2009

trict Type: Local

N: 047894

unty: Lake

e Submitted: 5/27/2009 Date Processed: 5/30/2009

Actual Forecasted

Line 2006 2007 2008 2009 2010 2011 2012 2

10 General Property (Real Estate) 19,116,632 20,552,180 21,887,752 22,618,227 22,829,090 23,296,224 24,149,314 26

20 Tangible Personal Property Tax 4,511,755 2,868,792 2,444,789 1,493,671 750,000 750,000 750,000

35 Unrestricted Grants-in-Aid 6,895,893 6,839,368 6,323,172 6,800,000 6,800,000 6,800,000 6,800,000 6

40 Restricted Grants-in-Aid 401,280 345,918 388,368 334,100 355,000 355,000 355,000

50 Property Tax Allocation 2,474,927 3,574,439 4,641,464 5,156,229 6,031,303 5,780,188 5,399,704 5

60 All Other Operating Revenue 4,681,747 4,599,653 4,653,975 4,032,000 3,957,000 3,857,000 3,807,000 3

70 Total Revenue 38,082,234 38,780,350 40,339,520 40,434,227 40,722,393 40,838,412 41,261,018 43

50 Advances-In 77,289 115,875 50,000 50,000 50,000

60 All Other Financial Sources 258

70 Total Other Financing Sources 258 77,289 115,875 50,000 50,000 50,000

80 Total Revenues and Other Financing Sources 38,082,492 38,857,639 40,455,395 40,434,227 40,772,393 40,888,412 41,311,018 43

10 Personnel Services 20,863,064 21,353,831 22,367,805 23,443,156 24,243,610 25,183,585 26,160,145 27

20 Employees' Retirement/Insurance Benefits 6,779,917 7,474,738 8,287,714 8,801,275 9,120,354 9,701,621 10,321,343 10

30 Purchased Services 5,546,788 5,513,127 6,115,688 6,178,912 6,406,495 6,643,033 6,888,906 7

40 Supplies and Materials 1,741,036 1,784,027 2,119,598 2,194,492 2,252,812 2,312,753 2,374,363 2

50 Capital Outlay 222,783 57,931 172,627 125,510 79,357 80,216 81,109

00 Other Objects 503,092 529,877 549,185 578,388 595,560 613,246 631,464

00 Total Expenditures 35,656,680 36,713,531 39,612,617 41,321,733 42,698,188 44,534,454 46,457,330 48

10 Operational Transfers - Out 168,431 248,046 368,115 150,000 75,000 75,000 75,000

20 Advances - Out 2,000 750 1,800 50,000 50,000 50,000 50,000

30 All Other Financing Uses 50,000 50,000 50,000 50,000

40 Total Other Financing Uses 170,431 248,796 369,915 250,000 175,000 175,000 175,000

50 Total Expenditure and Other Financing Uses 35,827,111 36,962,327 39,982,532 41,571,733 42,873,188 44,709,454 46,632,330 48

10 Excess Rev & Oth Financing Sources over(under) Exp & Oth Financing 2,255,381 1,895,312 472,863 (1,137,506) (2,100,795) (3,821,042) (5,321,312) (5,

10 Beginning Cash Balance 3,141,985 5,397,366 7,292,678 7,765,541 6,628,035 4,527,240 706,198 (4,6

20 Ending Cash Balance 5,397,366 7,292,678 7,765,541 6,628,035 4,527,240 706,198 (4,615,114) (9,9

10 Outstanding Encumbrances 599,164 1,042,749 681,622 600,000 600,000 600,000 600,000

30 Budget Reserve 585,565 585,565 585,565 585,565 585,565 585,565 585,565

80 Total Reservations 585,565 585,565 585,565 585,565 585,565 585,565 585,565

010 Fund Balance June 30 for Certification of Appropriations 4,212,637 5,664,364 6,498,354 5,442,470 3,341,675 (479,367) (5,800,679) (11,

010 Fund Bal June 30 for Cert of Contracts,Salary Sched,Oth Obligations 4,212,637 5,664,364 6,498,354 5,442,470 3,341,675 (479,367) (5,800,679) (11,

010 Unreserved Fund Balance June 30 4,212,637 5,664,364 6,498,354 5,442,470 3,341,675 (479,367) (5,800,679) (11,

Notes to the Five Year Forecast

verside Local School District

umptions

ve-Year Forecast

NERAL:

s financial forecast presents, to the best of management's knowledge, the

trict's expected revenue, expenditures and changes

ttp://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (1 of 8)09/10/2009 5:56:04 PM


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the general fund balance for the forecast period. Accordingly, the forecast

lects its judgment as of May 14, 2009, the date

this forecast, of the expected conditions and its expected course of action.

assumptions disclosed herein are those that

agement believes are significant to the forecast. There will usually be

ferences between the forecast and actual results

ause events and circumstances, many out of the District's control, frequently

not occur as expected, and those differences

y be material.

s financial forecast includes three years of historical data and five years

projected data in the District's General Fund.

current fiscal year, 2009, is the first year of projected data.

VENUES:

perty Taxes - Property tax revenue estimates are based on current legislation

d historical growth patterns, including updates

d reappraisals, and are substantiated by information provided for the upcoming

cal year from the county auditor. The property

x figures are based on historical collection levels.

10 General Property Tax (Real Estate)

perty values are established each year by the County Auditor based on new

struction and complete or updated values. The

ues reflect the full reappraisal that occurred in 2006. There will also

a triennial update for the 2009 values collected in

0. These changes have been factored into the projection for District propert

values.

ing update and reappraisal years, residential and agricultural real estate

perty is expected to increase 18.47% and

mmercial and industrial real estate property is expected to increase 9.99%.

ing non-update and non-reappraisal years,

idential and agricultural real estate property is expected to increase 4.0%

d commercial and industrial real estate propertyexpected to increase 2.61%. These percentages are based on the historical

reases from 1988 through 2007. The May 2009

vision reflects the current real estate market conditions and assumes no incre

in values as part of the revaluation in 2010.

x levies are collected on a calendar basis (January through December), and

fiscal year is July through June. Real estate

xes are settled or paid twice a year; in March and August. Because we cannot

ume a renewal or replacement levy will pass by

ember 2009, the last payment on this levy will be August 2009 (fiscal year

0). To comply with the format of the forecast,

real estate taxes (line 1.010) reflect the half-year loss in fiscal year

0 and a full year loss in 2011 and 2012.

20 Tangible Personal Property Tax

sonal property tax, primarily taxes on business inventories, and equipment

most affected by changes in inventory levels and

gislative actions that alter the assessment rate. These taxes are difficult

predict as evidenced by their historical pattern;

ual percentage changes in valuation ranging from +13.5% to -22.85%.

se Bill 66 phases out the tax on the tangible personal property of general

inesses, telephone and telecommunications



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mpanies, and railroads. The tax on general business and railroad property

l be eliminated by 2009, and the tax on telephone

d telecommunications property will be eliminated by 2011. The tax is phased

by reducing the assessment rate on the property

h year. At the same time, the bill replaces the revenue lost due to phasing

the tax. In the first five years, school

tricts and local governments are reimbursed fully for lost revenue; in the

lowing seven years, the reimbursements are phased

.

6 - 2010: The "Hold-Harmless Period"

tax on tangible property is to be phased out over the period from 2006 to

9. During this "Hold Harmless Period" all taxing

horities will be fully reimbursed relative to prior law for revenue lost

to the taxable value reductions prescribed by HB

mbursement will be made for the base year amount, except that taxing authorit

are only reimbursed for inventory property

essment percentage reductions beyond those already in place before the passag

f HB 66. This means taxing authorities are only

mbursed for the amount of revenue projected by using listing percentages

inventory property of 23% in 2006, 21% in 2007, 19%

2008, and 17% for 2009.

qualifying fixed-rate levies will be reimbursed to reflect the losses in

x revenue during the phase-out of the tangible

perty tax.

qualifying school district emergency levies will be reimbursed at 100% of

base year amount beginning in 2006, subject to

half-mill threshold adjustment for all fixed-sum levies of the school distri

even if the emergency levy expires, is reduced,

is not levied by the school district for any of these years. No reimbursement

l be received for the fixed sum levies since

half-mill threshold was not met. The millage on these levies will be increa

d so that the original dollar amount of the levy

tinues to be collected.

66 treats each of the different types of tangible property somewhat different

for the purposes of phasing out the tax on

gible property. First: all new manufacturing and machinery property put into

vice in 2005 or thereafter is excluded from

xation. Second: since inventory property is currently being phased out (withou

eimbursement), HB 66 provides reimbursement only

that portion of the lost revenue that is over and above the amount that

ld be lost according to prior law. Third: telephone

mpany tangible property does not begin to be phased out until tax year 2007.

to these differences the reimbursement rates for

h of the types of property varies slightly.

tax year 2006, for example, the assessment rate on furniture and fixtures

rt of the "other property" classification) is

duced by one-fourth (from 25% to 18.75%). The state reimbursement payment25% of the base year amount holds schools harmless,

that they receive 100% of the base year amount by a combination of local

vies and state reimbursement payments.

tax year 2006 the assessment rate on existing manufacturing machinery and

ipment is also reduced by one-fourth to 18.75

cent. However, new manufacturing machinery and equipment is not listed for

xation at all. In an effort to hold schools

vernments harmless, the reimbursement rate for manufacturing machinery and

ipment is set at 33.8 percent of the base year

unt instead of 25 percent. The higher reimbursement rate is designed to offse

he loss in local tax revenue due to the new



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ufacturing machinery and equipment having a zero assessment rate, so that

general schools and local governments receive 100%

the base year amount through a combination of reimbursement payments and

al property tax revenues. In tax years 2007 and

8, the reimbursement rates for machinery and equipment continue to be higher

n the percentage decline in the assessment rate

attempt to account for new property coming on the rolls with a zero assessmen

ate.

general, the values used to determine the reimbursements to school districts

(1) the tax year 2004 property values in the

trict as of August 31, 2005, (2) the "qualifying levy" rates, (3) a percentag

qual to the difference between the new (HB 66)

d old assessment rates, and (4) the reimbursement rate, which, for non-telepho

company property, is equal to 100 percent from

6 to 2010 and a declining percentage thereafter.

se reimbursements are accounted for in line 1.035 - Unrestricted Grants-in-Ai

ective January 1, 2001, non-municipal owned electric utilities were deregulat

in the State of Ohio. Electric company personal

perty was reduced from 100% assessed value to 25%. Effective May 1, 2001,

ilowatt-hour tax will begin to be collected.

8% of these dollars will be deposited in a new Property Tax Replacement Fund

RF). 70% of the PTRF will be paid to school

tricts that lost revenue as determined by the Ohio Department of Taxation.

st distributions will be made to cover costs of

xed sum levies such as debt and emergency levies. Next, fixed rate levies

l be replaced from 2002 through 2006, after this a

se out formula will begin. Distributions from the PTRF will be semi-annual

d began in February 2002.

amounts do not anticipate the automatic passage of a replacement or renewal

vy. That means that when a levy is scheduled to

ire, the estimated property tax revenue has a corresponding decline. Althoug

ew levies may be proposed during this time

iod, no new levies are included in these amounts.

35 Unrestricted Grants-in-Aid

per pupil average daily membership (ADM) funding amounts for 2009 is $5,732

following factors could also impact the state

ding to the District: income factor adjustments, transportation guarantees,

ational education factors, assessed value

ustments due to inventory tax reductions, and special education factors.

o, it is assumed that there will be adequate

ding in subsequent years to fund these components. The District will recogni

no increase in State Foundation revenue during

forecast period.

March 24, 1997, the Ohio Supreme Court rendered a decision declaring certain

tions of the Ohio school funding plan

onstitutional. The Court stayed the effect of its ruling for one year to

ow the Ohio General Assembly to design a plan to

medy the defects in the system. Declared unconstitutional was the State's

hool Foundation Program", which provides

gnificant amounts of money to school districts.

ce the Supreme Court ruling, the Ohio General Assembly has passed numerous

ces of legislation in an attempt to address the

ues identified by the Court. The Court of Common Pleas in Perry County has

viewed the new laws and on February 26, 1999



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ermined they are not sufficiently responsive to the constitutional issues

sed under the "thorough and efficient" clause of

Ohio Constitution. The State appealed the decision made by the Court of

mmon Pleas to the Ohio Supreme Court. In May 2000

Supreme Court ruled that the State of Ohio had not done enough to comply

h the original order found in the original case.

court gave the State of Ohio until June 15, 2001 to correct funding of schoo

The school funding system was declared

onstitutional again in September 2001, and most recently in December 2002.

Supreme Court has again directed the General

embly to enact a school funding scheme that is "thorough and efficient."

of the date of this forecast, the District is unable to determine what effect

f any, ongoing litigation will have on its

ure State funding under the foundation program, and on its financial operatio

from fiscal years 2009 through 2013.

40 Restricted Grants-in-Aid

tricted grants-in-aid is the School Bus Purchase Allowance program that provi

subsidies for school bus purchases. Currently,

District receives about $30,000 annually to offset the cost of a school

.

50 Property Tax Allocation

rollback and homestead reimbursements are tax credits by the State of Ohio

nted to owners of real estate property. A 10%

duction in the property taxes paid by the owner is paid by the state to the

trict. If the property owner occupies the

perty, then an additional 2.5% reduction in the property taxes is paid by

state to the District instead of the property

er. Increases in this line item are anticipated to reflect the anticipated

reases in real estate growth and to the personal

perty tax reimbursement.

60 All Other Revenuesher revenues include investment earnings, proceed from rental of the District

ilities, athletic pay-to-participate fees,

tion from other districts for special education students and open enrollment

dents. These revenue items can greatly

ctuate from year-to-year based on changes in interest rates, usage of facilit

and students attending the District for either

cial or regular education. This line item has been substantially decreased

to the continued decrease in open enrollment

venue.

ENDITURES

10 Personal Services

s line accounts for the salaries of the entire staff. The current negotiated

eement for the classified staff expires July

2010 and includes base salary increases of 2% each of the three years of

negotiated agreement. The current negotiated

eement for the teaching staff expires August 31, 2011 and includes annual

e salary increases of 3%, 2.3% and 3% over the

ee years of the negotiated agreement. Total base salaries are projected

increase at historical annual averages per year

er the expiration of the current negotiated agreements. Increases in staffin

evels due to increases in enrollment have been

icipated.



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20 Employees' Retirement/Insurance Benefits

s line accounts for the fringe benefits (Board paid contributions to employee

irement systems, medical, dental, vision and

e insurance premiums, Medicare, and workers' compensation) of the entire

ff. These benefits were calculated using the actual

es for employee retirement systems (14%), Medicare (1.45%) and workers' compe

tion (1%) of the related salaries shown on the

sonal services line. Health and life insurance is expected to increase and

rage of 8%, annually after employee

tributions.

30 Purchased Services

planning purposes, this area is projected to increase approximately 3% annua

y. The main budget items in this area include

utilities (gas, electric, water, sewer, phone, garbage), community school

tion, post secondary education option tuition,

cial education tuition, outgoing open enrollment tuition, property, liability

nd vehicle insurance, equipment repairs and

tals, and postage. These budget items are generally considered the fixed

t items of operating the District.

40 Supplies and Materials


y. The main budget item in this area includes

tructional supplies, maintenance and custodial supplies, and transportation

l and parts. This is one area that is governed

the House Bill 412 and Senate Bill 345 fiscal accountability standards that

quire 3% of the prior year's base cost multiplied

the District's student population to be used for textbooks and instructional

plies purchases. These forecasted figures

mply with those mandates. The amount for textbooks and instructional supplies

budgeted to increase every year of the forecast

iod.

50 Capital Outlay


y. Capital outlay includes all new and

lacement equipment for the District. Again, this is an area that is governed

the House Bill 412 and Senate Bill 345

quirements mandating purchases toward capital improvements and maintenance.

permanent improvement levy fund (separate from

general operating fund) meets this requirement, thus reducing the burden

m the general fund.

her Financing Uses

se line items cover fund-to-fund transfers and end of year short-term loans

m the General Fund to other funds until they have

eived reimbursement and can repay the General Fund.

ERVATION OF FUND BALANCE

10 Textbook and Instructional Materials

an annual basis, the textbook and instructional materials set-aside requireme

are expected to be met through General Fund

enditures already projected in the future; therefore there are no additional

ervations required.

20 Capital Improvements



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an annual basis, the capital improvements and maintenance set-aside requireme

are expected to be met through Permanent

rovement Fund expenditures; therefore there are no additional reservations

quired.

30 Budget Reserve

budget reserve includes the Bureau of Workers' Compensation rebates received

d the phase-in amounts previously required by

se Bill 412. The Board of Education passed a resolution retaining this reser

under R. C. 5705.13(A).

VENUE FROM REPLACEMENT/RENEWAL LEVIES

020 Property Tax - Renewal or Replacement

five-year, 1.74 mill operating levy was renewed in 2004. It must be renewed

replaced in calendar year 2009. If it is not

ewed or replaced, the District will lose approximately $637,500 for fiscal

r 2010 and $1,275,000 annually thereafter.

ive-year, 3.3 mill operating levy was passed in 2004. It must be renewed

replaced in calendar year 2009. If it is not

ewed or replaced, the District will lose approximately $1,412,500 for fiscal

r 2010 and $2,825,000 annually thereafter.

se levies were replaced by a substitute levy passed in May 2009.

M FORECASTS

010 Kindergarten - October Count

015 Grades 1-12 - October Count

ollment (ADM) is based on actual numbers, FY 2006, FY2007, FY2008 and FY2009.

jections are based on historical increases.

le the District has had three enrollment studies conducted, all three have

derestimated the growth in enrollment. While it is

icipated that this growth in enrollment will continue, many factors will

ect the actual change in enrollment. These factors

lude birth rate, building activity, real estate transactions and other econom

conditions.

020 Kindergarten - February Count

025 Grades 1-12 - February Count

jected enrollment for the February counts is the same as the October count

ce, based on the first year two separate counts

ve been made, there is very little difference in the counts.

ASONS FOR REVISION:

major changes to this revised forecast are as follows:

General Property Tax (Real Estate) Revenue has been changed to reflect

current real estate market conditions and assumes

increase in values as part of the revaluation in 2010. These differences

ect the revenues for the FY2009 through FY2013. This

e also now includes the projected income from the substitute levy passed

May 2009.

Tangible Personal Property Tax has been adjusted to reflect current revenue.

The Employees' Retirement/Insurance Benefits amounts have been reduced to

lect a lower annual rate for health insurance.



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Revenue from Replacement/Renewal Levies has been changed to reflect the

sage of the Substitute Levy in May 2009.

ADM count for FY2009 has been changed to reflect actual ADM.

_________________________________

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Riverside Schools Five Year Forecast (5/27/2009)

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Transcript of Riverside Schools Five Year Forecast (5/27/2009)