independence local schools · 1.01 real estate estimates 8 o fy‐2018 ‐tif revenue moved to line...

INDEPENDENCE LOCAL SCHOOLS

FISCAL YEAR 2019OCTOBER FORECAST SUMMARY

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OperatingDaysAvailable: 205 170 130 84 32

FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear2019 2020 2021 2022 2023

BeginningBalance 10,627,489 10,316,936 8,964,530 7,074,053 4,729,093

+Revenue 18,089,145 17,877,653 17,971,028 18,094,006 18,184,494+ProposedRenew/ReplacementLevies ‐ ‐ ‐ ‐ ‐+ProposedNewLevies ‐ ‐ ‐ ‐ ‐‐Expenditures (18,399,698) (19,230,059) (19,861,505) (20,438,966) (21,063,764)=RevenueSurplusorDeficit (310,553) (1,352,406) (1,890,477) (2,344,960) (2,879,270)

EndingBalance 10,316,936 8,964,530 7,074,053 4,729,093 1,849,823

RevenueSurplusorDeficitw/oLevies (310,553) (1,352,406) (1,890,477) (2,344,960) (2,879,270)EndingBalancew/oLevies 10,316,936 8,964,530 7,074,053 4,729,093 1,849,823

Revenue/Expenditure SummaryIncome and Expense Simplified Statement ‐ Projected Fiscal Years

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Continuously trying to push deficit spending out one year at a time.

Includes Steps, Education & Base adjustments.Fy‐19 ‐ 2.25%, Fy‐20‐ 2.5%,

Minimal level of operating day = 90

Revenue & Expenditure Comparison

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BOR/BTA REFUNDS

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Current BOR/BTA Outstanding:• 5 Decrease @ $97k.• 37 Increase @$922k.

General Fund Refund Projection –Including TIF Refund Estimates:

• FY‐19 $538k • FY‐20 $310k• FY‐21 $300k• FY‐22 $300k• Fy‐23 $300k

ESC – Refund FY‐19:• Education Service Center exempt status refund $201k.

• ESC will reimburse district in full after receipt of refund.• Contribution will be reflected in line 1.06 “Other Revenue”

of forecast.

Refunds History – All Funds

ACTUAL Agricultura #P Residential #P ClassII(All)#R PP/PUPP #OJ

27,306,70427,833,53428,308,534

2021 388,8402022 388,840

TotalValuationsbyPropertyClassification

2015 388,8402016 388,8402017 388,840

388,840196,430,250196,876,172

388,8402020 388,840

10,779,01029,259,247

1,640,720(4,163,150)(5,085,440)

Residential

2019

198,450,590181,909,760173,393,940180,737,320195,985,917

199,757,400238,735,630347,530

ClassII(All)200,039,350 16,106,220

18,952,48020,192,65022,521,00024,612,24025,794,59326,539,475

2013

Total455,719,670239,228,070

240,264,230251,360,430252,462,460253,806,850266,635,147269,934,220273,274,531280,715,075283,290,075

TotalClassI239,574,100239,083,160240,611,760251,749,270252,851,300254,195,690267,023,987270,323,060273,663,371281,103,915283,678,915

TaxYear Agricultural PP/PUPP

2017

17,533,550 456,374,110 654,440 0.1%0.4%‐0.9%‐1.1%2.4%6.4%0.9%0.9%2.1%0.8%

4,488,2874,553,463

199,272,442200,297,442

2012 346,030

2014 347,530

10,363,6434,075,000

2018

2017PropertyValuationClass%ofTotalYOY%

‐4.9%

458,014,830453,851,680448,766,240459,545,250488,804,497493,292,785497,846,247508,209,890512,284,890

YOY$Change(23,500,040)

Agricultural0.08%

Residential55.23%

Class II (All)39.33%

PP/PUPP5.36%

Tax Duplicate Property Valuation Projections(Not including TIF Values)

Class I Assumptions:• 2018 county reappraisal.• Projecting 5.1% valuation increase or $12.8m.• Projects to be at 20 mil floor.

• Revenue growth on full millage.• Increased new construction – approximately

$2.m per year.

Class II Assumptions:• 2018 county reappraisal.• Projecting 8.4% increase in commercial values or

$15.2m.• Increased new construction.• Revenue growth on Inside millage (6.1).• New construction growth in TIF projections.

TIF NumberPrimary Type of

TIFTY 2011

Taxable ValueTY 2012






Taxable valueTY 2018




Taxable value

310005 Residential 6,718,110 6,718,110 6,718,110 6,718,110 6,718,110310010 Commercial 8,147,930 6,594,805 6,594,805 6,856,570 7,779,205 6,324,920 8,435,980 8,857,779 8,946,357 9,035,820 9,082,298310015 Commercial 0 0 0 0 0310020 Commercial 6,758,955 5,775,455 5,775,455 5,811,295 4,799,270 3,668,665 3,792,915 3,982,561 4,022,386 4,062,610 4,083,507310025 Commercial 2,672,530 2,806,157 2,834,218 2,862,560 2,877,284310030 Commercial 5,381,600 8,767,150 9,442,790 8,594,320 7,445,305 8,267,735 8,111,390 8,516,960 8,602,129 8,688,150 8,732,840310035 Commercial 3,077,655 3,231,538 3,263,853 3,296,492 3,313,448310040 Commercial 3,120,740 4,426,240 4,742,780 3,911,845 3,646,825 3,905,405 3,662,295 3,845,410 3,883,864 3,922,702 3,942,880310050 Commercial 5,138,735 10,738,735 10,808,735 13,363,735 13,363,735 13,363,735 13,363,735 14,031,922 14,172,241 14,313,963 14,387,590310060 Commercial 1,753,535 1,960,840 1,960,840 1,960,840 1,657,390 1,657,390 1,657,390 1,740,260 1,757,662 1,775,239 1,784,370310070 Commercial 3,777,760 3,820,005 3,886,330 3,735,165 2,865,695 2,410,975 2,982,175 3,131,284 3,162,597 3,194,223 3,210,653310080 Commercial 7,328,790 7,606,690 7,606,690 7,601,125 7,211,225 7,211,225 7,102,270 7,457,384 7,531,957 7,607,277 7,646,407310090 Commercial 909,055 942,585 945,945 945,945 913,080 913,080 913,080 958,734 968,321 978,005 983,035310100 Residential 2,037,210 2,074,800 2,119,040 2,120,790 2,473,275 2,579,780 2,583,735 2,842,109 2,984,214 3,103,582 3,119,546310120 Residential 491,575 684,530 995,260 1,053,360 1,282,050 1,397,410 1,407,035 1,547,739 1,625,125 1,690,130 1,698,824

Total Assessed Valuation: 44,845,885$ 53,391,835$ 54,878,670$ 55,954,990$ 53,437,055$ 51,700,320$ 66,480,295$ 69,667,943$ 70,473,035$ 71,248,864$ 71,580,792$

New TIF Residential (Chestnut woods)

New TIF (Bowl)

New TIF (Home‐2‐Suites)

New TIF (Spring Hill)

TIF Valuation Estimates

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• Fy‐2019 Inflated TIF payment.• New TIF’s 1st and 2nd half payments

received on Fall 2018 settlement.

• Estimated values of new TIF projects.Actual FY 2015 385,093Actual FY 2016 536,895Actual FY 2017 181,200Actual FY 2018 112,006Projection FY 2019 222,347Projection FY 2020 110,000Projection FY 2021 100,000Projection FY 2022 100,000Projection FY 2023 100,000

TIF Refund EstimateFY Operating EstimateActual FY 2015 1,699,558Actual FY 2016 1,279,262Actual FY 2017 1,785,292Actual FY 2018 1,882,671Projection FY 2019 2,528,559Projection FY 2020 2,043,336Projection FY 2021 2,078,997Projection FY 2022 2,096,895

CollectionYr. Rate: 1stHalfSplit Rate: 2ndHalfSplitActual 2014 98.1% 54.1% 92.9% 51.2%

2015 98.1% 54.1% 88.8% 56.6%2016 97.9% 54.2% 92.4% 53.1%2017 97.9% 54.4% 97.7% 58.3%2018 97.8% 58.6% 93.2% 56.7%

Estimated 2019 98.0% 54.0% 95.0% 56.0%2020 98.0% 54.0% 95.0% 56.0%2021 98.0% 54.0% 95.0% 56.0%2022 98.0% 54.0% 95.0% 56.0%2023 98.0% 54.0% 95.0% 56.0%

ClassIICollectionsClassICollections

Collection Rate Analysis

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4 parcels = 60% of delinquencies

One Owner of 6 parcels = 82% of delinquencies

SettlementSheetAnalysis Actual Actual Actual Actual ActualCollectionYear> 2018 2017 2016 2015 2014

CurrentCollectionRate(CurrentLeviedLocalTaxes):ClassIPotentialTaxRevenueLevied 6,699,503 6,654,938 6,542,990 6,304,097 6,278,022

ClassICurrentCollectionsperSettlementSheet 6,553,723 6,512,567 6,408,398 6,182,757 6,159,363ClassICollectionRate 97.8% 97.9% 97.9% 98.1% 98.1%

ClassIIPotentialTaxRevenueLevied 5,752,345 5,646,015 5,884,598 6,380,186 6,462,152ClassIICurrentCollectionsperSettlementSheet 5,360,010 5,514,418 5,436,294 5,664,550 6,000,166

ClassIICollectionRate 93.2% 97.7% 92.4% 88.8% 92.9%

CombinedCurrentCollectionRatebothClassIandClassII 95.7% 97.8% 95.3% 93.4% 95.4%

Delinquencies: GrossDelinquenciesCollected1sthalf 337,796 189,647 255,495 264,664 361,320GrossDelinquenciesCollected2ndhalf 22,640 27,560 16,196 58,979 129,654

TotalAnnualGrossDelinquenciesCollected 360,436 217,207 271,692 323,643 490,974

Class I Class IIParcels Residential Parcels Com./Ind.38 273,944.56$ 12 262,843.43$

Delinquent Tax Report

1.01 Real Estate Estimates

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o Fy‐2018 ‐ TIF revenue moved to line 1.06 of forecast.

o Projections: Reappraisal 2018 collection 2019. Fy‐19 ESC refund $201k. Fy‐18 Increased collection split Class I – lower Fy‐

19 collection projections. Decreasing refunds. Class I (residential) reaching 20 mil floor.

TaxRevenue FiscalYear>> 2018Actual 2019 2020 2021 2022 2023TotalResidential,Ag,andBusinessCurrentTaxes 12,149,801 11,805,295 12,368,281 12,440,678 12,563,915 12,672,544

PriorYearDelinquencies 365,356 222,640 250,000 250,000 250,000 250,000NetFiscalYearAdvances (114,000) ‐ ‐ ‐ ‐ ‐

Refunds (86,570) (316,383) (200,000) (200,000) (200,000) (200,000)OtherAdjustments 39,139 ‐ ‐ ‐ ‐ ‐

Total 13,423,583 12,353,726 11,711,552 12,418,281 12,490,678 12,613,915 12,722,544DollarChangeoverPrioryear (1,069,857) (642,175) 706,729 72,397 123,237 108,629

1.02 Tangible Personal Property

PUPP Includes:

Telephone companiesTelegraph companiesElectric companiesNatural gas companiesPipe‐Line companies RailroadsWater worksWater transportationHeating companiesRural electric companies

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PUPP Valuation Projections

Tax Year P.U. Personal Actual 2011 14,613,270$ 5.25%Actual 2012 16,106,220$ 10.22%Actual 2013 17,533,550$ 8.86%Actual 2014 18,952,480$ 8.09%Actual 2015 20,192,650$ 6.54%Actual 2016 22,521,000$ 11.53%Actual 2017 24,612,240$ 9.29%

Estimated 2018 25,794,593$ 4.80%Estimated 2019 26,539,475$ 2.89%Estimated 2020 27,306,703$ 2.89%Estimated 2021 27,833,533$ 1.93%

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

2018 Actual 2019 2020 2021 2022 2023

1.02PublicUtilityPersonal 773,807 820,121 842,268 865,315 881,871 894,620DollarChangeoverPriorYear 76,402 46,314 22,147 23,047 16,556 12,749PercentageChangeoverPriorYear 10.96% 5.99% 2.70% 2.74% 1.91% 1.45%

1.020‐ PublicUtilityPersonalProperty

4.3%

FY2018PublicUtilityasa%ofTotalRevenue

1.035 Unrestricted (Foundation)

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The elimination of 50% of regular transportation funding ($123k) over the next two fiscal years (2018 & 2019) has moved the district from a CAP funded district to a Guarantee or formula funded district. Eliminates any growth potential in State funding.

Projected2018 2019 2020 2021 2022 2023

FinalFundingAmount 629,806 612,099 611,256 620,926 636,836 648,066UnfundedFormulaAboveCap $46,616 $0 $0 $0 $0 $0

Preschool 76,514 77,342 78,000 80,000 80,000 80,000SpecialEducationTransportation 50,979 50,979 42,500 42,500 42,500 42,500

PerPupil,FY16: $48.60 CasinoFunding 54,138 53,612 54,215 56,237 58,026 59,1282016TPPHoldHarmless80% ‐

CareerTech‐NegativeAdjtoRestricted (843) (843) ‐ ‐ ‐ ‐nDisadvantaged‐NegativeAdjtoRestricted (583) (624) (635) (659) (679) (692)

AdjustmentsTPP20% 81,560 ‐ ‐ ‐ ‐AdjustmentforCurrentCashFlowTrend: 2,265

893,836 792,565 785,335 799,005 816,682 829,003

1.05 Property tax Allocation

• Fy‐18 – Fy‐22 fixed‐sum emergency phase out.

1.050‐PropertyTaxAllocation Actual Projected2018 2019 2020 2021 2022 2023

ProjectionsarenotBasedUponPreviousFiscalYear10%RollbackTotalDollars 776,089 786,282 799,842 808,432 821,569 833,105

2.5%ResidentialRollbackTotalDollars 162,740 166,034 168,898 170,712 173,486 175,922HomesteadTotalDollars 175,319 174,367 177,374 179,279 182,192 184,751

18,427 ‐ ‐ ‐ ‐ ‐TotalRollbackandHomestead 1,132,575 1,126,684 1,146,114 1,158,423 1,177,247 1,193,777

‐TPPFixed‐RateDirectReimbursementRevenue ‐ ‐ ‐ ‐

TPPFixed‐SumEmergencyLevyReimbursementRevenue 95,551 74,317 53,084 31,850 10,617 ‐Total 1,228,126 1,201,001 1,199,198 1,190,274 1,187,864 1,193,777


2018 Actual 2019 2020 2021 2022 2023

1.06OtherRevenue 2,721,716 3,485,080 2,591,936 2,585,097 2,552,995 2,503,858

1.06 Other Revenue

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Property Tax Settlements

Includes TIF revenue projections.

Description 2018 2019 2020 2021 2022 20231190‐OtherLocal‐TIF 1,882,671 2,528,559 2,043,336 2,078,997 2,096,895 2,052,758

Actual Actual ActualSettlements: Fy‐20 Fy‐19 Fy‐18 Fy‐17 Fy‐16

Cleveland Clinic ‐$ ‐$ ‐$ 618,483$ ‐$ ESC Return of Refund 201,465$ Corp. Plaza (Pending) 54,822$ 54,822$

Corp. Plaza & Park (Pending) 31,381$ 31,381 Rockside Square I & II 20,000 15,000 15,000 ‐ ‐ JDI Tax yr. 2013 & 14 36,633 36,633

JDI Tax yr. 2015 & 16 & 17 57,868 59,133 58,332 JAGI Cleveland Holiday Inn 35,000 35,000 30,000 ‐ ‐

Kent State ‐ ‐ ‐ 25,000 25,000 Hampton Inn 17,985 17,750 20,000 20,000 Double Tree 37,500 37,500 37,500 37,500 37,500

Estimated Receivables: 92,500$ 451,021$ 245,586$ 795,948$ 119,133$

3.01 Personnel

Include steps & Ed. movement + 2% ‐ 2.25% ‐ 2.5% base raises 2018‐20.

2019 Includes additional employees. Intervention Specialist. Computer Ed. Kdg. Maintenance

2019 Includes two RIF positions. 2019 Total +2 FTE employees.

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• 53% of total general fund expenditures.• Not including ESC personnel.• 2018 addition of 2nd grd. & pre‐school.

Fixed Base Increases:2% 2.25% 2.5%

Forecasted Base Increases:1% 1% 1%


2018 Actual 2019 2020 2021 2022 2023

3.01Personnel 9,177,284 9,654,801 10,051,812 10,317,845 10,569,179 10,826,713264,648 477,517 397,011 266,033 251,334 257,5342.97% 5.20% 4.11% 2.65% 2.44% 2.44%

‐2.02%

0.49%1.25%

3.31%2.97%

5.20%

4.11%

2.65%2.44%2.44%

‐3.00%‐2.00%‐1.00%0.00%1.00%2.00%3.00%4.00%5.00%6.00%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

%ChangePersonnelServices

3.02 Benefits

Estimated 10% increase in health costs for fiscal years 2020 – 2023.

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FY‐20198.5% health insurance rate increase.


2018 Actual 2019 2020 2021 2022 2023

3.02EmployeeBenefits 3,402,806 3,687,854 3,937,130 4,183,189 4,446,347 4,732,164282,003 285,048 249,276 246,059 263,158 285,8179.04% 8.38% 6.76% 6.25% 6.29% 6.43%

3.03 Purchase Services

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Purchase Services Include: Utilities. Professional development. Legal services. ESC services. Building‐transportation

contracted services. Special ed. services, etc.


2018 Actual 2019 2020 2021 2022 2023

3.03PurchaseServices 3,468,319 3,611,234 3,791,796 3,943,468 4,022,337 4,102,784249,153 142,915 180,562 151,672 78,869 80,4477.74% 4.12% 5.00% 4.00% 2.00% 2.00%

Purposed Actual Actual Actual Actual Actual ActualFy‐19 Fy‐18 Fy‐17 Fy‐16 Fy‐15 Fy‐14 Fy‐13

Utilities 482,500 420,367 420,555 356,846 485,691 449,946 425,916 ESC Personnel 1,073,625 1,143,164 1,084,227 1,017,443 1,048,293 1,032,193 988,487 Building repairs 172,000 134,453 122,653 176,105 247,501 133,500 161,649

Legal/PR/Evaluations 145,000 131,285 115,044 100,123 121,540 122,484 115,940

Noteworthy Purchase Services

3.04 Supplies3.05 Equipment

• Increased for curriculum/textbook needs previous paid from P.I. fund.

• Evaluated on a yearly basis according to needs.

o Technology purchases previously paid with permanent improvement for equipment & technology supplies.

o 2019 Infrastructure upgrades.

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2018 Actual 2019 2020 2021 2022 2023

3.04Supplies 653,368 600,000 600,000 600,000 600,000 600,000


2018 Actual 2019 2020 2021 2022 2023

3.05CapitalOutlay 204,717 285,258 150,002 150,002 150,002 150,002

Debt Service H.B. 264Energy Conservation Improvement Bonds

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2018 2019 2020 2021 2022 2023ProjectionsarenotBasedUponPreviousFiscalYear

4.050‐Principal‐HB264Loan 85,000 85,000 90,000 90,000 90,000 95,0004.060‐InterestandFiscalCharge 22,456 20,544 18,418 16,100 13,700 11,200

Total[4.060] 107,456$ 105,544$ 108,418$ 106,100$ 103,700$ 106,200$

4.3 Other

• Looked at historical data & trends.• Includes:

• Liability insurance.• Board expenses.• Organizational dues/fees• County auditor/treasurer

fees.• Yearly financial report.• Auditing services (2yr. Cycle).

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2018 Actual 2019 2020 2021 2022 2023

4.3OtherObjects 275,358 265,001 300,901 270,901 307,401 308,401

FY‐18 Actual FY‐17 Actual FY‐16 Actual FY‐15 Actual FY‐14 Actual County Auditor/Treas. Fees 205,978$ 179,588$ 183,224$ 214,993$ 225,309$ Financial Rpt. /Audit Fees 30,840 6,000 46,300 5,000 43,000 ESC Deduction 6,716 6,578 6,416 6,630 6,769 Liability Ins. 6,710 19,892 19,670 20,354 21,371

209k

312k278k 283k

235k275k 265k

300k270k

307k 308k

‐

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

4.300‐ OtherObjects

5.01 Transfer Out

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Manuscript debt payments 2012‐2015.

2018 – Increase café & athletic transfer to avoid deficit spending in Fy‐2019.• Auditors recommendations.

PercentageofTotalExpenditures: Actual1.0% 2018 2019 2020 2021 2022 20235.010‐OperatingTransfers‐Out

Cafeteria 80,000 50,000 50,000 50,000 50,000 50,000Athletic 100,000 40,000 40,000 40,000 40,000 40,000

CapitalProjects ‐ 100,000 200,000 200,000 150,000 150,000Total[5.010] 180,000$ 190,000$ 290,000$ 290,000$ 240,000$ 240,000$

Projected

independence local schools · 1.01 real estate estimates 8 o fy‐2018 ‐tif revenue moved to line...

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