mohawk local school district five-year financial forecast fiscal 2016-2020

MOHAWK LOCAL SCHOOL DISTRICT

Five-Year Financial Forecast

Fiscal 2016-2020

What has Changed?Previous Current Dollar PercentForecast Forecast Difference Difference

Amounts For Amounts For Between BetweenF.Y. 2016 F.Y. 2016 Previous Previous

Prepared on: Prepared on: and andRevenue: 5/14/2015 10/16/2015 Current Current

Real Estate & Property Al location $2,934,346 $2,897,392 -$36,954 -1.3%Publ ic Util i ty Personal Property $292,887 $311,803 $18,916 6.5%

Income Tax $1,381,151 $1,388,362 $7,212 0.5%State Foundation Restricted & Unrestricted $4,381,361 $5,128,622 $747,261 17.1%

Other Revenue $1,028,965 $1,026,505 -$2,460 -0.2%Other Non Operating Revenue $40,000 $45,175 $5,175 12.9%

Tota l Revenue $10,058,710 $10,797,859 $739,149 7.3%

Expenditures:Salaries $4,531,772 $4,767,032 $235,260 5.2%

Fringe Benefi ts $1,691,485 $1,856,365 $164,880 9.7%Purchased Services $2,515,482 $2,515,381 -$102 0.0%

Suppl ies , Debt, Capi ta l Outlay & Other $772,277 $845,501 $73,223 9.5%Other Non Operating Expenditures $276,230 $777,772 $501,542 181.6%

Tota l Expenditures $9,787,247 $10,762,050 $974,803 10.0%

Revenue Over/(Under) Expenditures $271,463 $35,809 -$235,654 -2.4%*

Ending Cash Ba lance $2,117,426 $1,883,576 -$233,851 -86.1%*

Forecast SummaryFiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

2016 2017 2018 2019 2020

Beginning Balance 1,847,767 1,883,576 1,899,983 2,146,578 2,225,526

+ Revenue 10,797,859 11,001,758 11,071,467 11,265,242 11,590,199

+ Proposed Renew/Replacement Levies - - - - - + Proposed New Levies - - - - -

- Expenditures (10,762,050) (10,985,350) (10,824,872) (11,186,294) (11,558,753)

= Revenue Surplus or Deficit 35,809 16,408 246,595 78,948 31,446

Ending Balance 1,883,576 1,899,983 2,146,578 2,225,526 2,256,972

Revenue Surplus or Deficit w/o Levies 35,809 16,408 246,595 78,948 31,446

Ending Balance w/o Levies 1,883,576 1,899,983 2,146,578 2,225,526 2,256,972

Revenue vs Expenditures Graph

Cash Balances Graph

2017 2018 2019 202016,408 246,595 78,948 31,446

1,899,983 2,146,578 2,225,526 2,256,972

16,408 246,595 78,948 31,446 1,899,983 2,146,578 2,225,526 2,256,972

- - - - 0 - - -

2017 2018 2019 20200 0 0 00 0 0 0

16,408 246,595 78,948 31,446 1,899,983 2,146,578 2,225,526 2,256,972

0

2,146,578

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2016 2017 2018 2019 2020

Year End Balances With & Without Proposed Levies

Cash Balance with Proposed Levies Cash Balance without Proposed Levies

SIGNIFICANT REVENUE ASSUMPTIONS

Prev. 5-Year PROJECTED 5-Year

Avg. Annual Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Avg. Annual

Change 2016 2017 2018 2019 2020 Change

Revenue:1.010 - Real Estate 5.44% 4.62% 1.32% 0.08% -0.04% 0.88% 1.37%

1.020 - Public Utility 18.04% 9.13% 0.00% 0.00% 0.00% 0.00% 1.83%

1.030 - Income Tax 4.03% 3.54% 3.10% 3.14% 3.18% 3.22% 3.24%1.035 - State Funding 1.28% 15.85% 2.05% 0.41% 2.87% 4.68% 5.17%

1.040 - Restr Aid 53.30% 2.64% -0.35% 0.18% -0.26% 0.40% 0.52%

1.045 - Restr Federal SFSF -49.59% n/a n/a n/a n/a n/a n/a

1.050 - Property Tax Alloc -1.42% 4.73% 1.11% 0.27% -0.17% 0.85% 1.36%

1.060 - All Other Operating Revenue3.33% 0.00% 1.95% 0.00% 0.00% 0.00% 0.39%

1.070 - Total Revenue 2.33% 9.09% 1.90% 0.64% 1.76% 2.90% 3.26%2.070 - Total Other Financing Sources23.06% -0.68% 0.00% 0.00% 0.00% 0.00% -0.14%

2.080 - Total Revenues and Other Financing Sources2.34% 9.05% 1.89% 0.63% 1.75% 2.88% 3.24%

Property Tax and State Funding Trend

Real Estate Tax

• Class I – Residential/Agricultural

• Class 2 – Industrial/Commercial

• Public Utility Personal Property

• House Bill 920 Effect

Residential

• 35% of Market Value (determined every 6 years with an update in-between.

• 1 Mill = .001

• Example: $200,000 home X 35% = $70,000 Taxable Value X 20 mills = $1,400 tax (less 12.5% rollback/homestead) = $1,225.00.

Agricultural• CAUV – Current Agricultural Use Value

• Complicated formula comprised of Yield Information, Cropping Pattern, Crop Prices, Non-Land Production Costs and Capitalization Rate.

• Details can be found at http://www.tax.ohio.gov/Portals/0/personal_property/Explanation2015.pdf

House Bill 920 Effect• Passed in 1976.

• As property values increase, the millage rate will decrease so that the same amount of tax is collected.

• This will occur until a floor is reached at 20 mills.

• Example 25 mills on $20,000,000 Taxable Class 1 Value = $500,000 tax revenue. If reappraisal is at $22,000,000, millage will adjust to 22.7 mills and the tax will remain $500,000.

Mohawk Millage

• Class 1 – 20 Mill Floor

• Class 2 – 23.61 Mills

• Public Utility Tangible – Does not have a HB 920 effect. 31.90

State Funding• Core Aid – 52% ($250,889 decrease)

• Targeted Funding (Includes Agricultural Target) – 23% ($715,250 increase)

• Special Education 6% ($61,126 decrease)

• K-3 Literacy – 1% ($3,102 increase)

• Gifted – 1% ($887 increase)

• Transportation Aid – 6% ($21,142 decrease)

• Preschool - <1% - ($0 difference)

• Supplemental Transportation (New) – 2% ($96,598 increase)

• Capacity Aid (New) – 7% ($367,122)

• Graduation Bonus (New) - <1% ($11,859 increase)

• Third Grade Proficiency Bonus (New) - <1% ($11,781 increase)

• Guarantees and Caps

Resources Trend

SIGNIFICANT EXPENDITURE ASSUMPTIONS

Prev. 5-Year PROJECTED 5-Year

Avg. Annual Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Avg. Annual

Change 2016 2017 2018 2019 2020 Change

Revenue:

3.010 - Salaries 0.89% 5.29% 3.99% 3.76% 3.42% 3.39% 3.97%

3.020 - Benefits -1.40% 11.13% 4.33% 4.24% 4.09% 4.09% 5.58%

3.030 - Purchased Services 7.33% -4.04% 0.37% 1.53% 2.72% 2.72% 0.66%

3.040 - Supplies & Materials 14.58% -6.00% 3.00% 3.00% 3.00% 3.00% 1.20%3.050 - Capital Outlay 68.75% -18.97% -26.86% 3.00% 3.00% 3.00% -7.37%

3.060 - Intergov n/a n/a n/a n/a n/a n/a n/a

4.010 - 4.060 - Debt n/a n/a n/a n/a n/a n/a n/a

4.300 - Other Objects 0.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

4.500 - Total Expenditures 2.93% 2.30% 2.15% 3.24% 3.34% 3.33% 2.87%

5.040 - Total Other Financing Uses18691.17% 191.10% 1.09% -62.45% 3.18% 3.22% 27.23%5.050 - Total Expenditures and Other Financing Uses3.47% 7.33% 2.07% -1.46% 3.34% 3.33% 2.92%

Expenditure Trend

Cash Flow

2016 2017

Plan for Long Term Fiscal Stability

• To meet long term capital needs, beginning in FY15 we began allocating 20% of income tax into a new Permanent Improvement Fund. This fund is paying for the HVAC improvements and other future capital projects. In FY16 and FY17 we will transfer an additional $500,000 each year into this fund.

• Beginning in FY14, we put $200,000 into a “rainy day” fund. It is the intent that we will allocate another $200,000 into this fund in FY16 and for the following 2 years. This fund is to be used in the future to avoid program cuts during those years when there is a major economic downturn.

VIEW IT ON THE INTERNET

• Forecast and notes are available for public viewing.

• www.mohawklocal.org

Contact:

• Treasurer, Roy B. Swartz, CPA

(419) 927-2414 roy.swartz@mohawklocal.org