Understanding the Five-Year Forecast Process in Maple Heights City School District
Exploring the intricacies of the five-year forecast in Maple Heights City School District, covering the purpose, components, and recent updates, such as enrollment changes, agreements, and economic indicators impacting financial planning.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Five-Year Forecast Community Presentation May 20, 2024
What is a Five Year Forecast? It is a three year look back and five year look ahead It has two parts: the numbers, and the assumptions (the story) It only covers the General Fund It is a living document that is only a snapshot in time of the big picture. It is what we currently know and that we think will happen. It will be as accurate as possible, but these are educated guesses. It is updated every six months and presented to the BOE for approval before being submitted to the ODE It will focus on the present (FY24) with an eye on the future (FY25-28)
Why do we complete a five-year forecast? Ohio Revised Code Section 5705.391 mandates that school districts submit five-year projections of operational revenues and expenditures. The rules shall provide for the auditor of state or the department to examine the five-year projections and to determine whether any further fiscal analysis is needed to ascertain whether a district has the potential to incur a deficit during the first three years of the five-year period. Source: 2017 Lawriter LLC
Five Year Forecast Outline Topics we are going to cover tonight: General Fund Revenues Assumptions Expenditures Assumptions Five Year Forecast Summary
What is the General Fund? Used to account for all financial resources that are not restricted to specific purposes or otherwise required to be accounted for in another fund.
What is included as General Fund revenue? Cuyahoga County property tax revenues School foundation settlements from ODE Homestead and rollback Medicaid Reimbursements Miscellaneous revenue such as rentals, school fees and interest received from investments
Maple Heights City School District October 2023 Forecast
What has happened since October 2023 Enrollment number has decreased from 3,024 students to 2,906 students (118 less students) The district and MHTA successfully negotiated a 3 year agreement The district and MOST completed a 3 year agreement upon being voted on 30-year fixed mortgage rate dropped from 8.04% to a 7.65% US inflation is at 3.1% for 2024 STAR Ohio investment daily rate at 5.58%
Maple Heights City Schools General Fund Revenues and Assumptions
General Fund Revenues FY 24 Total Revenue : $55,417,771 02.070 : Total Other Financing Sources; 10.88% 01.010 : General Property Tax (Real Estate); 25.78% 01.060 : All Other Operating Revenue; 4.24% 01.050 : Property Tax Allocation; 3.33% 01.040 : Restricted Grants- in-Aid; 7.59% 01.020 : Tangible Personal Property Tax; 2.26% 01.035 : Unrestricted Grants- in-Aid; 45.91%
Revenue Assumptions General Property Taxes (Line 1.010) $14,287,184 General Property Taxes are the second largest source of revenue consisting of three current levies and an emergency levy. My commitment to the taxpayers is to spend, record and report your investment diligently, transparently and accurately.
Revenue Assumptions Public Utility Personal Property (Line 1.020) $1,250,856 The Public Utility Personal Property tax revenue is generated from the personal property values, additions and depreciation reported by utility companies.
Revenue Assumptions Unrestricted Grants-in-Aid (Line 1.035) $25,445,012 In FY 2022 Ohio adopted the Fair School Funding Plan. Funding is driven by a base cost methodology that incorporates components identified as necessary to the education process. Base cost is calculated as the cost to educate a typical child in Ohio (currently at 2022 rates) State and Local Share (Local share based upon the ability of a school district s community to generate revenue considering its income level and its property value) Categorical aid/targeted assistance (funding provided for a specific purpose such as Students with disabilities, Gifted students, English Language Learners and Transportation.) Maple Heights City School District has a calculated Base Cost (2022 figures) of $25,958,834. The Base Cost is currently calculated for two years using a statewide average from historical actual data.
Revenue Assumptions Restricted Grants-In-Aid (Line 1.040 & 1.045) $4,208,707 Restricted aid is the portion of state per pupil funding that must be classified as restricted use. Success and Wellness funding used to be its own separate fund but in FY2022, it was shifted to the General Fund but is still considered restricted. This restricted amount for FY 2024 is $651,814 This also includes Disadvantage Pupil Impact Aid, English Learners, Gifted and Career Technical Education.
Revenue Assumptions Property Tax Allocation (Line 1.050) $1,847,027 Primarily consists of reimbursements from the State of Ohio for local taxpayer credits or reductions. All other Operating Revenue (Line 1.060) $2,348,908 Includes tuition received for non-resident students educated by the district. It also includes interest income, payments in lieu of taxes, and miscellaneous revenue. Inflation and rate hikes have been driving interest income upwards.
Revenue Assumptions Total Other Financing Sources (Line 2.070) $6,030,077 This is the return of advances from the prior fiscal year that is typically done in July, and all other financing sources.
General Fund Expenditures FY 24 04.300 : Other Objects; 1.13% Total Expenditure : $47,685,123 05.040 : Total Other Financing Uses; 6.11% 04.060 : Interest and Fiscal Charges; 0.26% 03.050 : Capital Outlay: .65% 03.040 : Supplies and Materials; 4.60% 03.030 : Purchased Services: 20.61% 03.010 : Personal Services - Employee Salaries & Wages; 49.13% 03.020 : Employees' Retirement and Insurance Benefits; 17.52%
Expenditure Assumptions Personnel Services (Line 3.010) $23,426,847 This includes all salaries and wages of certified and classified employees, board office staff, Superintendent, Treasurer, department heads, substitutes and board members. The increase in FY 2025 includes identified staff that is funded by ESSER funds returning to the General Fund and negotiated increases for MHTA and M.O.S.T. (also included in FY 2026 and 2027) Employees Retirement/Insurance Benefits (Line 3.020) $8,353,951 This includes medical premiums, dental premiums, vision premiums, pension payments, Medicare, workers compensation and unemployment insurance. 67% of FY 2024 expenses are salaries and benefits
Expenditure Assumptions Purchased Services (Line 3.030) $9,827,712 This includes cost to other districts for special education instruction, tuition, utility costs, repairs, professional services, technical services, negative open enrollment and professional leave reimbursements. Supplies and Materials (Line 3.040) $2,193,253 This includes textbook adoptions, instructional supplies, office supplies, software, vehicle supplies and transportation fuel. There is a Science Textbook and ELL Textbook adoption included in FY 2024 and Math Textbook adoption included in FY 2025. Additional adoptions are anticipated in FY 2026-2028
Expenditure Assumptions Capital Outlay (Line 3.050) $309,006 This includes technology initiatives, bus replacement and equipment purchases. Interest and Fiscal Charges (Line 3.060-4.060) $123,035 These lines account for pass through payments, as well as monies received by a district on behalf of another governmental entity, plus principal and interest payments for general fund borrowing. Other Objects (Line 4.300) $537,682 This includes membership dues and fees, ESC contract deductions, County Auditor/Treasurer fees, audit expenses, and election expenses. Total All Other Financing Uses (Line 5.040) $2,913,636 This includes operating transfer outs, advances out at year-end and total other financing uses.
Maple Heights City School District May 2024 Forecast
Maple Heights City School District Five Year Forecast Chart Title 60 50 40 Millions 30 20 10 0 FY 2023 (Actual) FY 2024 (Est.) FY 2025 (Est.) Revenue FY 2026 (Est.) Cash Balance FY 2027 (Est.) FY 2028 (Est.) Expense
Maple Heights City School District Five Year Forecast Days Cash On Hand 160 139 140 129 117 120 100 94 82 79 80 Millions 63 60 53 50 37 40 20 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
