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MOHAWK LOCAL SCHOOL DISTRICT
Five-Year Financial Forecast
Fiscal 2016-2020
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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%*
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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
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Revenue vs Expenditures Graph
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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
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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%
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Property Tax and State Funding Trend
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Real Estate Tax
• Class I – Residential/Agricultural
• Class 2 – Industrial/Commercial
• Public Utility Personal Property
• House Bill 920 Effect
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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.
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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
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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.
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Mohawk Millage
• Class 1 – 20 Mill Floor
• Class 2 – 23.61 Mills
• Public Utility Tangible – Does not have a HB 920 effect. 31.90
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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)
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• 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
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Resources Trend
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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%
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Expenditure Trend
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Cash Flow
2016 2017
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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.
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VIEW IT ON THE INTERNET
• Forecast and notes are available for public viewing.
• www.mohawklocal.org