ledgemont inside millage proposal

8/13/2019 Ledgemont inside millage proposal

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LEDGEMONT

LOCALSCHOOL

DISTRICT

PUBLIC HEARING ONPROPOSED MOVEMENTOF INSIDE MILLAGE

JANUARY 13, 20146:30 P.M.


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FUND Purpose Date Passed(voted)

Type MillageOriginallyAuthorized

General Fund Operational

Inside Millage

N/A

Set by law

Continuous 3.5

General Fund OperationalInside Millage

N/ASet by law

Continuous 1.0

General Fund Operational 1976 & prior Continuous 25.4

General Fund Operational Feb. 5, 1980 Continuous 4.5

General Fund Operational May 3, 1988 Continuous 7.9

General Fund Operational Nov. 3, 1992 Continuous 8.9

TOTAL - 51.2 46.7 voted

4.5 set by law

ORIGINAL MILLAGELEDGEMONT LOCAL SCHOOL DISTRICT


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INSIDE MILLAGE Minimum tax millage set by Statutorylegislation which will raise a specified amount of tax dollars.Inside millage is not affected by inflation or new construction ina district. Inside millage will always be assessed to everyproperty in the district at the same rate into the future. At

Ledgemont School District, our Inside Millage is set at 4.5%

OUTSIDE MILLAGE Taxpayer voted millage. Outside millage isaffected by inflation over time. Outside millage rate is set at thetime of authorization (vote), but the dollars collected are limitedto the original amount authorized. Thus, as property valuesincrease over time, the dollars collected remain constant causing the effective rate of tax to decrease as the propertyvalues increase.

AUTHORIZED MILLAGE The amount of millage approved byvoters in any given election.

DEFINITION OF TERMS


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Type MillageOriginally

Authorized

2014Effective

Millage Rate


N/ASet by law

Continuous 3.5 3.5


N/ASet by law

Continuous 1.0 1.0

General Fund Operational 1976 & prior Continuous 25.4 6.297523

General Fund Operational Feb. 5, 1980 Continuous 4.5 1.336527

General Fund Operational May 3, 1988 Continuous 7.9 3.508777

General Fund Operational Nov. 3, 1992 Continuous 8.9 4.481523

TOTAL 46.7 voted

4.5 set by law

15.62435 voted

4.5 set by law

CURRENT EFFECTIVE MILLAGELEDGEMONT LOCAL SCHOOL DISTRICT


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0

5

10

15

20

25

30

INSIDEMILLAGE

1976 & PRIOR 5-Feb-80 3-May-88 3-Nov-92

ORIGINAL MILLAGE CURRENT EFFECTIVE RATE

TAX EFFECT OF INFLATIONOVER TIME


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0

10

20

30

40

50

60

INSIDE STATUTORY MILLAGE

OUTSIDE VOTEDMILLAGE

TOTAL COMBINEDMILLAGE

ORIGINAL MILLAGE CURRENT EFFECTIVE RATE

TAX EFFECT OF INFLATIONOVER TIME


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CONTINUOUS LEVY A levy whose millage does not expire. This levywill a lways be assessed and does n ot need to be renewed in order tocontinue generating funds for a school distr ict .

EXPIRING LEVY A levy which has a set term of collection typically 3,5, or 10 years. Th ese levies can be renewed as they expire byadditional vote of the distr ict residents prior to their expiration.

OPERATING LEVY (for ge neral operating expenses) A levy whose fundsare used for general operating expenses.

SPECIAL PURPOSE LEVY A levy whose funds are set aside for specif icand intended purposes. Funds generated from these levies are notallowed to be comingled with general operational funds and must beaccounted for separately in the books and records of the collectingentity ( the distr ict) . Funds may ONLY be spent on the intendedpurpose. (Examples Permanent I mprovement Levy, Bond Levy, DebtService Levy, Capital Improvement/Facili ty Construction Levy)

DEFINITION OF TERMS


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LEDGEMONT SCHOOL DISTRICT:HAS NO EXPIRING PROPERT Y TAX LEVIESHAS NO SPECIAL PURPOSE TAX LEVIES

ALL of Ledgemonts Voted Property Tax Levies are Continuous

THEY WILL FOREVER CONTINUE TO DECLINE IN MILLAGEas property values increase over t ime.

THEY WILL NEVER COLLECT MORE DOLLARSthan they did when they were originally passed.

SPECIFICS TOLEDGEMONT SCHOOL DISTRICT


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LEDGEMONT SCHOOL DISTRICT:

HAS NOT PASSED A NEW PROPERTY TAX LEVY SINCE

NOVEMBER 3, 1992

SPECIFICS TOLEDGEMONT SCHOOL DISTRICT


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GENERAL FUND Schools operate under a segregatedsystem of cash accounting with different funds (or cash)set aside for different legal purposes. The GENERAL FUND isthe day-to-day operating fund for the school district.

OPERATIONAL EXPENSES Day to day expenses of running theschools. Includes things like salaries, employee benefits,utilities, cost of transportation, classroom supplies, special edservices, gen eral facility repairs & maintenance, insurance,legal & other professional fees, and all administrative costs.

SPECIAL PURPOSE FUNDS Funds (cash) legally separatedfrom the day to day operational funds of the school districtthat are used specifically for the intended purpose for whichthey are designated.

DEFINITION OF TERMS


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GENERAL FUNDReceives revenue from:

State Foundation Payments - from The State of OhioReal Estate Taxes from district property ownersSchool District Income Taxes from district wage earners

Medicaid Reimbursements from eligible families served in schoolOpen Enrolled In students from other school districtsOther minor miscellaneous revenues

Expenses include:Salaries & benefits of all teaching & administrative employees, maintenance& custodial staff, educational aides, clinic staff, library staff and co-curricularadvisors.Includes the cost of all utilities, student transportation, classroom supplies,special education services, general facility repairs & maintenance, insurance,legal & other professional fees, and all administrative costs.Also absorbs the States chargebacks for Open Enrolled Out students,payments to Community & Charter Schools, and P.S.E.O. tuition costs to localcollegesVirtual Learning Academy costs

LEDGEMONT FUNDS


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DISTRICT MANAGED STUDENT ACTIVITY FUNDSReceives revenue from:

Donations, Fundraisers for specific activities, VendingExpenses include:

Payments for specified activity supplies & functions, donations directed by

each group, field trip transportation for group activitiesExamples of District Managed Student Activities: Yearbook, Newspaper, Student Council, Marching/Pep Band, Teen Institute,Art Club , Principal Directed Discretionary Funds

STUDENT MANAGED ACTIVITY FUNDS

Receives revenue from:Donations & Fundraisers held by the various groupsExpenses include:

Payments for specified activity supplies & functions chosen by the students(Homecoming expenses, Prom expenses)

Examples of District Managed Student Activities:Class of 2014, Class of 2015, Class of 2016,

LEDGEMONT FUNDS


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ATHLETIC FUNDReceives revenue from:

Pay-to-Participate FeesGate & Ticket Sales

Expenses include:

Salaries & benefits of coaches & advisorsSupply purchases for direct athletic needs, payments to officials, ticket-takers & security, uniforms, league fees , and transportation to all athleticevents.

FOOD SERVICE FUNDReceives revenue from:

Cafeteria sales at elementary & high schoolFederal & state free & reduced breakfast & lunch program

Expenses include:Salaries & benefits of food-service staffFood & supply purchases for direct cafeteria use

Direct repairs & maintenance to kitchen facility & equipment

LEDGEMONT FUNDS


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BUILDING IMPROVEMENT FUNDSLedgemont has NO special purpose levy for permanent improvements.Approximately $23,000 has been set aside for an anticipated sewer tie-in atthe High School building

TRUST FUNDS

As the Beneficiary of cer tain Trusts (such as The Francis Spatz Lei ghtonTestamentary Trust), trust funds are segregated in the books and records ofthe district. Trust funds are not available to pay General Fund expenses .

SCHOLARSHIP FUNDSLedgemont School District manages a variety of scholarships which areawarded at Graduation each year. Funds held in the scholarship accountsare carried over from year to year and are not available to be spent on

General Fund expenses.

GRANT FUNDSA variety of grant funds are received annually from the Federal Government.These funds are required to be segregated and spent strictly on items setforth in the grant applications. Some examples of allowable expendituresinclude Teacher Professional Development, Intervention & Tutoring salarypayments, and technology improvements for rural districts.

LEDGEMONT FUNDS


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REVENUES EXPENSES

Open Enrollment, PSEO,State Mandated

Programs

General OperationalCosts

Salaries & Benefits

Earned Income Tax

Real Property Taxes

State Foundation

LEDGEMONT SCHOOL DISTRICTBALANCE BETWEEN GENERAL FUND

REVENUE & EXPENSE


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REVENUES

EXPENSES

LEDGEMONT SCHOOL DISTRICTBALANCE BETWEEN GENERAL FUND

REVENUE & EXPENSE


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Borrow (Repay) BALANCE

2010-11 State of Ohio Borrow $2,170,000 $2,170,000


2011-12 Repayments ($1,085,000) $2,762,000


2012-13 Repayments ($1,085,000) $2,791,000

2013-14 Repayments ($419,250) $2,371,750

2013-14 State of Ohio Borrow(Projected) $300,000 2,671,750

STATE SOLVENCY ASSISTANCE FUNDLOAN HISTORY


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STATE LAWALLOWS FORTHE MOVE OF

INSIDEMILLAGE

from GeneralFund /

OperationalFunds forspecific

purposes asset forth by

law.

DEBTSERVICE IS

ONE OFTHOSE

ALLOWABLE

PURPOSES

Per OhioRevised Code

(O.R.C.)Inside Millagetax revenues

can bemoved and

reallocated tospecifically

address DebtService needs

of a schooldistrict.

LEDGEMONTSCHOOLDISTRICT

CANREQUEST

THAT UP TO4.5 MILLS OF

INSIDEMILLAGE BECOLLECTED

ANDDESIGNATEDSPECIFICALLY

TO REPAYDEBTS.

MOVING INSIDE MILLAGE FOR THEPURPOSE OF DEBT SERVICE


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Funds are collected as usual

Revenues are diverted from the General Fund

Cash is segregated from General Funds available cash

Funds are no longer allowed to be spent on operationalexpenses

Funds MUST be spent on the specifically identified andintended purpose

WHAT HAPPENS TO THE FUNDS GENERATEDWHEN INSIDE MILLAGE IS MOVED?


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FUNDS ARE DIVERTEDAS LONG AS NEEDED TO

SATISFY THEREQUIREMENTS OF THE

INTENDED PURPOSEBoards ini t ia l resolut ion would set a t ime l imit

on the requested move.

HOW LONG ARE THE FUNDS DIVERTED?


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AdvertisePublic

Hearing

HoldPublic

Hearing

PassBoard

Resolution

SubmitResolution to

CountyAuditor for

presentationto the County

BudgetCommission

Millage ismoved with

the nextcalendar /

tax year

FORLEDGEMONTTHIS WOULD

BE 2015

STEPS NECESSARY TO SUCCESS


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Minimum millage set at 20 Mills for school districts operating fund

Ohio Law states that district residents must contribute a minimum of 20effective mills to their school districts general operating fund. This iscalled The 20 Mill Floor

Ledgemont is just above the 20 Mill Floor at 21.12453 Mills beingcharged to residents annually

If the district moves 4.5 of those fixed mills to debt service, we areleft with 15.62453

This is under the minimum floor set by state law

The county would be required to re-set our tax rate to reflect an additionalcharge to bump the rate back up to 20 Mills for General Operations

The bump would amount to 4.37565 mills

HOW DOES LEDGEMONT END UPWITH ADDITIONAL FUNDS?


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ADDITIONAL MILLAGE ASSESSED BY COUNTY(not voted by residents)

4.37565 Mills $401,350 annually

MILLAGE MOVED TO DEDICATED DEBT SERVICE FUND

4.5 Inside Mills $451,573 annually

FINANCIAL IMPACT TO LEDGMONTSCHOOL DISTRICT


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NET EFFECT ON GENERAL FUND

Increase of 4.37565 Mills increase of $401,350

TAXPAYERS ASSESSED ADDITIONAL FUNDS

6-7 years $401,350 annually

2,671,750 CURRENT DEBT REPAID TO STATE OF OHIO

6-7 years $451,573 annually

FINANCIAL IMPACT TO LEDGMONTSCHOOL DISTRICT


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It is a formulated plan to repay State of Ohio Solvency Assistance Loans .

It is a plan with a finite beginning and a finite end .

Millage movement for debt service is permissible by State law .

Provides the district with a viable opportunity to recover from financialstress that loan repayments have placed the district under.

Gives the district breathing room and time to explore furtherreductions, changes, and opportunities.

Allows debt to be addressed, thereby making Ledgemont an attractivepartner for many shared service opportunities.

IN SHORTIT GIVES LEDGEMONT OPTIONS

WHY DO THIS?


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Solvency Assistance Advances not specifically identified as Debt undercurrent state law

Current Ohio law is vague as to the nature of Solvency AssistanceAdvances

No legal precedence for millage move for this sort of repayment

Ohio Department of Education may not be willing to agree to Extendedpayment terms as requested by Ledgemont Board of Education

Property Tax payers may be unhappy with the unvoted millage bump -up

POTENTIAL SETBACKS


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MILLAGE REVERTSBACK TO ITS

ORIGINAL STATE

4.5 Mills REVERTSBACK TO INSIDEMILLAGE

RESIDENTS ARE NO LONGER

ASSESSED THE ADDITIONALBUMPED -UP TAX

LEDEMONT EXITS FROMTHIS PERIOD DEBT FREE

WHAT HAPPENS WHEN DEBTIS FULLY REPAID?


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Ledgemont Local SD Average Household Income$49,646

Ledgemont Local SD Aggregate Property ValueHuntsburg Township - $680,830

Montville Township - $52,240,320Thompson Township - $49,45 3,680

TOTAL PROPERT Y VALUE: $102,374,830

SOME FINANCIAL STATISTICS


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LEDGEMONTLOCAL

SCHOOLDISTRICT

TAX BUDGET HEARING

JANUARY 13, 20127:15 P.M.


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Type MillageOriginally

Authorized

2014Effective

Millage Rate


N/ASet by law

Continuous 3.5 3.5


N/ASet by law

Continuous 1.0 1.0

General Fund Operational 1976 & prior Continuous 25.4 6.297523

General Fund Operational Feb. 5, 1980 Continuous 4.5 1.336527

General Fund Operational May 3, 1988 Continuous 7.9 3.508777

General Fund Operational Nov. 3, 1992 Continuous 8.9 4.481523

TOTAL 46.7 voted4.5 set by law

15.62435 voted4.5 set by law

CURRENT 2014 MILLAGE LEDGEMONT LOCAL SCHOOL DISTRICT


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DESCRIPTION FY12 Actual FY13 Actual FY14 Estimate FY15 BUDGET

Property Taxes 1,885,475 1,901,779 1,899,000 1,867,231

Grants In Aid 44,221 32,428 30,000 25,000

Property Tax Allocation 494,681 398,945 401,000 401,000

Public Utility 64,880 8,550 0 0School Foundation 1,929,894 1,996,251 2,025,000 2,025,000

Income Tax 603,290 1,028,466 1,099,961 1,100,000

Other Revenue 2,607,184 1,491,641 599,000 275,000

TOTAL REVENUE 7,629,625 6,858,060 6,053,961 5,693,231

EXPENDITURES 8,101,212 6,752,523 6,384,184 5,691,465

Over/(Under) (471,587) 105,537 (330,223) 1,766

Beginning Cash 775,514 303,927 409,464 79,241

Ending Cash 303,927 409,464 79,241 81,007

Yr. End Encumbrances 79,000 7,117 79,000 79,000

LEDGEMONT LSD GENERAL FUND - 001


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Property Taxes 0 0 0 0

Homestead & Rollback 0 0 0 0

Property Tax Allocation 0 0 0 0

Public Utility 0 0 0 0

Other Revenue 20,434 0 0 0

TOTAL REVENUE 20,434 0 0 0

EXPENDITURES 25,289 695 700 700

Over/(Under) (4,855) (695) (700) (700)

Beginning Cash 27,763 22,908 22,213 21,513

Ending Cash 22,908 22,213 21,513 20,813

Yr. End Encumbrances 0 0 0 0

LEDGEMONT LSD PERMANENTIMPROVEMENT FUND - 003


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Property Taxes 0 0 0 225,736

Homestead & Rollback 0 0 0 0

Public Utility 0 0 0 0

Other Revenue 0 0 0 0

TOTAL REVENUE 0 0 0 225,736

EXPENDITURES 44,760 18,910 0 225,736

Over/(Under) (44,760) (18,910) 0 0

Beginning Cash 63,670 18,910 0 0

Ending Cash 18,910 0 0 0

Yr. End Encumbrances 0 0 0 0

LEDGEMONT LSD PROPOSEDDEBT SERVICE FUND - 002


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PURPOSE OF NOTES Date ofIssue

Actual &Proposed

Date Dues

PrincipalOutstanding at

July 1, 2014

FY15 BUDGET

Repayment of State

Solvency AssistanceIndebtedness

Feb 1, 2012 June 30, 2017

Actual

$1,257,750 $419,250

Feb 1, 2013 June 30, 2019Proposed

$1,114,000 $222,800

Feb 1, 2014 June 30, 2020 $300,000 $0

TOTAL $2,671,750 $642,050

LEDGEMONT LSD SCHEDULE OF INDEBTEDNESS


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Fund by Type BeginningBalance

Total EstimatedReceipts

Total ResourcesAvailable forExpenditure

Total EstimatedExpenditures &Encumbrances

Ending EstimatedUnencumbered

Balance

SPECIAL REVENUE FUNDS

Public School Support 22,500 45,000 67,500 55,250 12,250

Student Activities 0 45,000 45,000 45,000 0

EMIS 0 8,000 8,000 8,000 0

Public Connectivity 0 3,600 3,600 3,600 0

Race to the Top 3,500 0 3,500 3,500 0

IDEA B 1,200 109,000 110,200 108,200 2,000

Title I 0 40,000 40,000 40,000 0

Title II-AImproving Teacher Quality 0 19,000 19,000 19,000 0

REAP 0 10,000 10,000 10,000 0

TOTAL

SPECIAL REVENUE FUNDS 27,200 279,600 306,800 292,550 14,250

LEDGEMONT LSDSTATEMENT OF FUND ACTIVITY

( F U N D S W I T H R E V E N U E O T H E R T H A N L O C A L TA X E S )


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Fund by Type BeginningBalance

Total EstimatedReceipts

Total ResourcesAvailable forExpenditure

Total EstimatedExpenditures &Encumbrances

Ending EstimatedUnencumbered

Balance

ENTERPRISE FUNDS

Food Service 0 128,000 128,000 128,000 0

Latchkey 7,500 20,000 27,500 20,000 7,500

TOTAL ENTERPRISE 7,500 148,000 155,500 148,000 7,500

INTERNAL SERVICE FUNDS

District Agency (Teachers) 1,000 3,750 4,750 3,750 1,000

TOTAL INTERNAL SERVICE 1,000 3,750 4,750 3,750 1,000

FIDUCIARY FUNDS

Student Activity 45,000 75,000 120,000 95,000 25,000

Trust Funds 58,000 0 58,000 18,000 40,000

TOTAL FIDUCIARY FUNDS 103,000 75,000 178,000 113,000 65,000

LEDGEMONT LSDSTATEMENT OF FUND ACTIVITY

( F U N D S W I T H R E V E N U E O T H E R T H A N L O C A L TA X E S )

ledgemont inside millage proposal

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