This action might not be possible to undo. Are you sure you want to continue?
Painesville Township Five Year Forecast for Fiscal Year 2009
District Type: Local IRN: 047894 County: Lake Date Submitted: 5/27/2009 Date Processed: 5/30/2009
1.010 General Property (Real Estate) 1.020 Tangible Personal Property Tax 1.035 Unrestricted Grants-in-Aid 1.040 Restricted Grants-in-Aid 1.050 Property Tax Allocation 1.060 All Other Operating Revenue 1.070 Total Revenue 2.050 Advances-In 2.060 All Other Financial Sources 2.070 Total Other Financing Sources 2.080 Total Revenues and Other Financing Sources 3.010 Personnel Services 3.020 Employees' Retirement/Insurance Benefits 3.030 Purchased Services 3.040 Supplies and Materials 3.050 Capital Outlay 4.300 Other Objects 4.500 Total Expenditures 5.010 Operational Transfers - Out 5.020 Advances - Out 5.030 All Other Financing Uses 5.040 Total Other Financing Uses 5.050 Total Expenditure and Other Financing Uses 170,431 248,796 369,915 258 258 77,289 115,875
Forecasted 2008 2009
1,493,671 6,800,000 334,100 5,156,229 4,032,000
750,000 6,800,000 355,000 6,031,303 3,957,000 50,000 50,000
750,000 6,800,000 355,000 5,780,188 3,857,000 50,000 50,000
750,000 6,800,000 355,000 5,399,704 3,807,000 50,000 50,000
26,566,334 750,000 6,800,000 355,000 5,026,852 3,757,000 43,255,186 50,000 50,000 43,305,186 27,174,720 10,982,122 7,144,509 2,437,689 82,038 650,228 48,471,306 75,000 50,000 50,000 175,000 48,646,306
19,116,632 20,552,180 21,887,752 22,618,227 22,829,090 23,296,224 24,149,314 4,511,755 2,868,792 2,444,789 6,895,893 6,839,368 6,323,172 401,280 345,918 388,368 2,474,927 3,574,439 4,641,464 4,681,747 4,599,653 4,653,975 77,289 115,875
38,082,234 38,780,350 40,339,520 40,434,227 40,722,393 40,838,412 41,261,018
38,082,492 38,857,639 40,455,395 40,434,227 40,772,393 40,888,412 41,311,018 20,863,064 21,353,831 22,367,805 23,443,156 24,243,610 25,183,585 26,160,145 6,779,917 7,474,738 8,287,714 5,546,788 5,513,127 6,115,688 1,741,036 1,784,027 2,119,598 222,783 503,092 168,431 2,000 57,931 529,877 248,046 750 172,627 549,185 368,115 1,800 8,801,275 6,178,912 2,194,492 125,510 578,388 150,000 50,000 50,000 250,000 9,120,354 6,406,495 2,252,812 79,357 595,560 75,000 50,000 50,000 175,000 9,701,621 10,321,343 6,643,033 2,312,753 80,216 613,246 75,000 50,000 50,000 175,000 6,888,906 2,374,363 81,109 631,464 75,000 50,000 50,000 175,000
35,656,680 36,713,531 39,612,617 41,321,733 42,698,188 44,534,454 46,457,330
35,827,111 36,962,327 39,982,532 41,571,733 42,873,188 44,709,454 46,632,330
6.010 Excess Rev & Oth Financing Sources over(under) Exp & Oth Financing 2,255,381 1,895,312 7.010 Beginning Cash Balance 7.020 Ending Cash Balance 8.010 Outstanding Encumbrances 9.030 Budget Reserve 9.080 Total Reservations 10.010 Fund Balance June 30 for Certification of Appropriations 12.010 Fund Bal June 30 for Cert of Contracts,Salary Sched,Oth Obligations 15.010 Unreserved Fund Balance June 30
472,863 (1,137,506) (2,100,795) (3,821,042) (5,321,312) (5,341,120) 7,765,541 6,628,035 600,000 585,565 585,565 5,442,470 5,442,470 5,442,470 6,628,035 4,527,240 600,000 585,565 585,565 3,341,675 3,341,675 3,341,675 4,527,240 600,000 585,565 585,565 706,198 (4,615,114) 600,000 585,565 585,565 600,000 585,565 585,565 706,198 (4,615,114) (9,956,234)
3,141,985 5,397,366 7,292,678 5,397,366 7,292,678 7,765,541 599,164 1,042,749 585,565 585,565 585,565 585,565 681,622 585,565 585,565
4,212,637 5,664,364 6,498,354 4,212,637 5,664,364 6,498,354 4,212,637 5,664,364 6,498,354
(479,367) (5,800,679) (11,141,799) (479,367) (5,800,679) (11,141,799) (479,367) (5,800,679) (11,141,799)
Notes to the Five Year Forecast
Riverside Local School District Assumptions Five-Year Forecast
GENERAL: This financial forecast presents, to the best of management's knowledge, the District's expected revenue, expenditures and changes
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (1 of 8)09/10/2009 5:56:04 PM
in the general fund balance for the forecast period. reflects its judgment as of May 14, 2009, the date
Accordingly, the forecast
of this forecast, of the expected conditions and its expected course of action. The assumptions disclosed herein are those that management believes are significant to the forecast. differences between the forecast and actual results because events and circumstances, many out of the District's control, frequently do not occur as expected, and those differences may be material. There will usually be
This financial forecast includes three years of historical data and five years of projected data in the District's General Fund. The current fiscal year, 2009, is the first year of projected data.
REVENUES: Property Taxes - Property tax revenue estimates are based on current legislation and historical growth patterns, including updates and reappraisals, and are substantiated by information provided for the upcoming fiscal year from the county auditor. The property tax figures are based on historical collection levels.
1.010 General Property Tax (Real Estate) Property values are established each year by the County Auditor based on new construction and complete or updated values. The There will also values reflect the full reappraisal that occurred in 2006. be a triennial update for the 2009 values collected in 2010. These changes have been factored into the projection for District propert y values.
During update and reappraisal years, residential and agricultural real estate property is expected to increase 18.47% and commercial and industrial real estate property is expected to increase 9.99%. During non-update and non-reappraisal years, residential and agricultural real estate property is expected to increase 4.0% and commercial and industrial real estate property is expected to increase 2.61%. These percentages are based on the historical increases from 1988 through 2007. The May 2009 Revision reflects the current real estate market conditions and assumes no incre ase in values as part of the revaluation in 2010.
Tax levies are collected on a calendar basis (January through December), and our fiscal year is July through June. Real estate Because we cannot taxes are settled or paid twice a year; in March and August. assume a renewal or replacement levy will pass by December 2009, the last payment on this levy will be August 2009 (fiscal year 2010). To comply with the format of the forecast, the real estate taxes (line 1.010) reflect the half-year loss in fiscal year 2010 and a full year loss in 2011 and 2012.
1.020 Tangible Personal Property Tax Personal property tax, primarily taxes on business inventories, and equipment are most affected by changes in inventory levels and legislative actions that alter the assessment rate. to predict as evidenced by their historical pattern; annual percentage changes in valuation ranging from +13.5% to -22.85%. These taxes are difficult
House Bill 66 phases out the tax on the tangible personal property of general businesses, telephone and telecommunications
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (2 of 8)09/10/2009 5:56:04 PM
companies, and railroads.
The tax on general business and railroad property
will be eliminated by 2009, and the tax on telephone and telecommunications property will be eliminated by 2011. The tax is phased out by reducing the assessment rate on the property each year. At the same time, the bill replaces the revenue lost due to phasing out the tax. In the first five years, school districts and local governments are reimbursed fully for lost revenue; in the following seven years, the reimbursements are phased out. 2006 - 2010: The "Hold-Harmless Period" The tax on tangible property is to be phased out over the period from 2006 to 2009. During this "Hold Harmless Period" all taxing authorities will be fully reimbursed relative to prior law for revenue lost due to the taxable value reductions prescribed by HB 66. Reimbursement will be made for the base year amount, except that taxing authorit ies are only reimbursed for inventory property assessment percentage reductions beyond those already in place before the passag e of HB 66. This means taxing authorities are only reimbursed for the amount of revenue projected by using listing percentages for inventory property of 23% in 2006, 21% in 2007, 19% for 2008, and 17% for 2009. All qualifying fixed-rate levies will be reimbursed to reflect the losses in tax revenue during the phase-out of the tangible property tax. All qualifying school district emergency levies will be reimbursed at 100% of the base year amount beginning in 2006, subject to the half-mill threshold adjustment for all fixed-sum levies of the school distri ct, even if the emergency levy expires, is reduced, or is not levied by the school district for any of these years. No reimbursement will be received for the fixed sum levies since the half-mill threshold was not met. continues to be collected. HB 66 treats each of the different types of tangible property somewhat different ly for the purposes of phasing out the tax on tangible property. First: all new manufacturing and machinery property put into service in 2005 or thereafter is excluded from taxation. Second: since inventory property is currently being phased out (withou t reimbursement), HB 66 provides reimbursement only for that portion of the lost revenue that is over and above the amount that would be lost according to prior law. Third: telephone company tangible property does not begin to be phased out until tax year 2007. Due to these differences the reimbursement rates for each of the types of property varies slightly. In tax year 2006, for example, the assessment rate on furniture and fixtures (part of the "other property" classification) is reduced by one-fourth (from 25% to 18.75%). The state reimbursement payment of 25% of the base year amount holds schools harmless, so that they receive 100% of the base year amount by a combination of local levies and state reimbursement payments. In tax year 2006 the assessment rate on existing manufacturing machinery and equipment is also reduced by one-fourth to 18.75 percent. However, new manufacturing machinery and equipment is not listed for taxation at all. In an effort to hold schools governments harmless, the reimbursement rate for manufacturing machinery and equipment is set at 33.8 percent of the base year amount instead of 25 percent. The higher reimbursement rate is designed to offse t the loss in local tax revenue due to the new The millage on these levies will be increa sed so that the original dollar amount of the levy
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (3 of 8)09/10/2009 5:56:04 PM
manufacturing machinery and equipment having a zero assessment rate, so that in general schools and local governments receive 100% of the base year amount through a combination of reimbursement payments and local property tax revenues. In tax years 2007 and 2008, the reimbursement rates for machinery and equipment continue to be higher than the percentage decline in the assessment rate to attempt to account for new property coming on the rolls with a zero assessmen t rate. In general, the values used to determine the reimbursements to school districts are (1) the tax year 2004 property values in the district as of August 31, 2005, (2) the "qualifying levy" rates, (3) a percentag e equal to the difference between the new (HB 66) and old assessment rates, and (4) the reimbursement rate, which, for non-telepho ne company property, is equal to 100 percent from 2006 to 2010 and a declining percentage thereafter. These reimbursements are accounted for in line 1.035 - Unrestricted Grants-in-Ai d. Effective January 1, 2001, non-municipal owned electric utilities were deregulat ed in the State of Ohio. Electric company personal Effective May 1, 2001, property was reduced from 100% assessed value to 25%. a kilowatt-hour tax will begin to be collected. 37.8% of these dollars will be deposited in a new Property Tax Replacement Fund (PTRF). 70% of the PTRF will be paid to school districts that lost revenue as determined by the Ohio Department of Taxation. First distributions will be made to cover costs of fixed sum levies such as debt and emergency levies. will be replaced from 2002 through 2006, after this a phase out formula will begin. and began in February 2002. Distributions from the PTRF will be semi-annual Next, fixed rate levies
The amounts do not anticipate the automatic passage of a replacement or renewal levy. That means that when a levy is scheduled to Althoug expire, the estimated property tax revenue has a corresponding decline. h new levies may be proposed during this time period, no new levies are included in these amounts.
1.035 Unrestricted Grants-in-Aid The per pupil average daily membership (ADM) funding amounts for 2009 is $5,732 The following factors could also impact the state funding to the District: income factor adjustments, transportation guarantees, vocational education factors, assessed value adjustments due to inventory tax reductions, and special education factors. Also, it is assumed that there will be adequate funding in subsequent years to fund these components. ze no increase in State Foundation revenue during the forecast period. The District will recogni
On March 24, 1997, the Ohio Supreme Court rendered a decision declaring certain portions of the Ohio school funding plan unconstitutional. The Court stayed the effect of its ruling for one year to Declared unconstitutional was the State's allow the Ohio General Assembly to design a plan to remedy the defects in the system. "School Foundation Program", which provides significant amounts of money to school districts.
Since the Supreme Court ruling, the Ohio General Assembly has passed numerous pieces of legislation in an attempt to address the issues identified by the Court. The Court of Common Pleas in Perry County has reviewed the new laws and on February 26, 1999
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (4 of 8)09/10/2009 5:56:04 PM
determined they are not sufficiently responsive to the constitutional issues raised under the "thorough and efficient" clause of the Ohio Constitution. The State appealed the decision made by the Court of In May 2000 Common Pleas to the Ohio Supreme Court.
the Supreme Court ruled that the State of Ohio had not done enough to comply with the original order found in the original case. The court gave the State of Ohio until June 15, 2001 to correct funding of schoo ls. The school funding system was declared unconstitutional again in September 2001, and most recently in December 2002. The Supreme Court has again directed the General Assembly to enact a school funding scheme that is "thorough and efficient."
As of the date of this forecast, the District is unable to determine what effect , if any, ongoing litigation will have on its future State funding under the foundation program, and on its financial operatio ns from fiscal years 2009 through 2013.
1.040 Restricted Grants-in-Aid Restricted grants-in-aid is the School Bus Purchase Allowance program that provi des subsidies for school bus purchases. bus. Currently, the District receives about $30,000 annually to offset the cost of a school
1.050 Property Tax Allocation The rollback and homestead reimbursements are tax credits by the State of Ohio granted to owners of real estate property. District. A 10% reduction in the property taxes paid by the owner is paid by the state to the If the property owner occupies the property, then an additional 2.5% reduction in the property taxes is paid by the state to the District instead of the property owner. Increases in this line item are anticipated to reflect the anticipated increases in real estate growth and to the personal property tax reimbursement.
1.060 All Other Revenues Other revenues include investment earnings, proceed from rental of the District facilities, athletic pay-to-participate fees, tuition from other districts for special education students and open enrollment students. These revenue items can greatly fluctuate from year-to-year based on changes in interest rates, usage of facilit ies and students attending the District for either special or regular education. revenue. This line item has been substantially decreased due to the continued decrease in open enrollment
EXPENDITURES 3.010 Personal Services This line accounts for the salaries of the entire staff. agreement for the classified staff expires July 31, 2010 and includes base salary increases of 2% each of the three years of the negotiated agreement. The current negotiated agreement for the teaching staff expires August 31, 2011 and includes annual base salary increases of 3%, 2.3% and 3% over the three years of the negotiated agreement. Total base salaries are projected Increases in staffin to increase at historical annual averages per year after the expiration of the current negotiated agreements. g levels due to increases in enrollment have been anticipated. The current negotiated
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (5 of 8)09/10/2009 5:56:04 PM
3.020 Employees' Retirement/Insurance Benefits This line accounts for the fringe benefits (Board paid contributions to employee retirement systems, medical, dental, vision and life insurance premiums, Medicare, and workers' compensation) of the entire staff. These benefits were calculated using the actual rates for employee retirement systems (14%), Medicare (1.45%) and workers' compe nsation (1%) of the related salaries shown on the personal services line. contributions. Health and life insurance is expected to increase and average of 8%, annually after employee
3.030 Purchased Services For planning purposes, this area is projected to increase approximately 3% annua lly. The main budget items in this area include all utilities (gas, electric, water, sewer, phone, garbage), community school tuition, post secondary education option tuition, special education tuition, outgoing open enrollment tuition, property, liability , and vehicle insurance, equipment repairs and rentals, and postage. These budget items are generally considered the fixed cost items of operating the District.
3.040 Supplies and Materials For planning purposes, this area is projected to increase approximately 3% annua lly. The main budget item in this area includes This is one area that is governed instructional supplies, maintenance and custodial supplies, and transportation fuel and parts. by the House Bill 412 and Senate Bill 345 fiscal accountability standards that require 3% of the prior year's base cost multiplied by the District's student population to be used for textbooks and instructional supplies purchases. These forecasted figures comply with those mandates. The amount for textbooks and instructional supplies is budgeted to increase every year of the forecast period.
3.050 Capital Outlay For planning purposes, this area is projected to increase approximately 3% annua lly. Capital outlay includes all new and Again, this is an area that is governed replacement equipment for the District. by the House Bill 412 and Senate Bill 345 requirements mandating purchases toward capital improvements and maintenance. The permanent improvement levy fund (separate from the general operating fund) meets this requirement, thus reducing the burden from the general fund.
Other Financing Uses These line items cover fund-to-fund transfers and end of year short-term loans from the General Fund to other funds until they have received reimbursement and can repay the General Fund.
RESERVATION OF FUND BALANCE 9.010 Textbook and Instructional Materials On an annual basis, the textbook and instructional materials set-aside requireme nts are expected to be met through General Fund expenditures already projected in the future; therefore there are no additional reservations required.
9.020 Capital Improvements
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (6 of 8)09/10/2009 5:56:04 PM
On an annual basis, the capital improvements and maintenance set-aside requireme nts are expected to be met through Permanent Improvement Fund expenditures; therefore there are no additional reservations required.
9.030 Budget Reserve The budget reserve includes the Bureau of Workers' Compensation rebates received and the phase-in amounts previously required by House Bill 412. The Board of Education passed a resolution retaining this reser ve under R. C. 5705.13(A).
REVENUE FROM REPLACEMENT/RENEWAL LEVIES 11.020 Property Tax - Renewal or Replacement A five-year, 1.74 mill operating levy was renewed in 2004. or replaced in calendar year 2009. If it is not It must be renewed
renewed or replaced, the District will lose approximately $637,500 for fiscal year 2010 and $1,275,000 annually thereafter.
A five-year, 3.3 mill operating levy was passed in 2004. It must be renewed or replaced in calendar year 2009. If it is not renewed or replaced, the District will lose approximately $1,412,500 for fiscal year 2010 and $2,825,000 annually thereafter.
These levies were replaced by a substitute levy passed in May 2009.
ADM FORECASTS 20.010 Kindergarten - October Count 20.015 Grades 1-12 - October Count Enrollment (ADM) is based on actual numbers, FY 2006, FY2007, FY2008 and FY2009. Projections are based on historical increases. While the District has had three enrollment studies conducted, all three have underestimated the growth in enrollment. While it is anticipated that this growth in enrollment will continue, many factors will effect the actual change in enrollment. These factors include birth rate, building activity, real estate transactions and other econom ic conditions.
Kindergarten - February Count
20.025 Grades 1-12 - February Count Projected enrollment for the February counts is the same as the October count since, based on the first year two separate counts have been made, there is very little difference in the counts.
REASONS FOR REVISION: The major changes to this revised forecast are as follows:
General Property Tax (Real Estate) Revenue has been changed to
the current real estate market conditions and assumes no increase in values as part of the revaluation in 2010. These differences effect the revenues for the FY2009 through FY2013. This line also now includes the projected income from the substitute levy passed in May 2009.
Tangible Personal Property Tax has been adjusted to reflect current revenue.
The Employees' Retirement/Insurance Benefits amounts have been reduced to
reflect a lower annual rate for health insurance.
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (7 of 8)09/10/2009 5:56:04 PM
Revenue from Replacement/Renewal Levies has been changed to reflect the
passage of the Substitute Levy in May 2009.
ADM count for FY2009 has been changed to reflect actual ADM.
Copyright © 2001 - ODE, Site developed and hosted by SSDT
http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=47894&Format=HTML (8 of 8)09/10/2009 5:56:04 PM
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.