1 / 45

Elida Local Schools Financial Summit IV

Elida Local Schools Financial Summit IV. Report to Stakeholders Fiscal Year 2008-09 Joel L. Parker,CPA. Goals. Review data on the emergency levy Review the financial condition of Elida Local Schools Expand the knowledge base on school funding issues

quinto
Download Presentation

Elida Local Schools Financial Summit IV

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Elida Local SchoolsFinancial Summit IV Report to Stakeholders Fiscal Year 2008-09 Joel L. Parker,CPA

  2. Goals • Review data on the emergency levy • Review the financial condition of Elida Local Schools • Expand the knowledge base on school funding issues • Review data for future financial planning • Exchange ideas on “best practices” • Encourage dialogue on future economic trends • Have summit representative report to the Board of Education on current condition

  3. TYPES OF LEVIES • BOND LEVY – Used to finance permanent improvements, new construction or renovation (Per ORC-MAY NOT BE USED FOR OPERATIONS) • PERMANENT IMPROVEMENT LEVY- Used for repairs/fixed assets with a useful life of 5 years (can be limited or continuing) and can be renewed or replaced

  4. TYPES OF LEVIES • OPERATING LEVY-Used for current operations (can be limited or continuing) can be renewed or replaced • EMERGENCY LEVY-Used for operations (limited to 5 years and generates a set amount) can be renewed but not replaced • RENEW=same effective rate • REPLACE=original millage

  5. History – Emergency Levy • Passed May 3, 2005 • 7.7 mills • 5 years • $2.7 million(increase $996,000) • Restore All-day Kindergarten • Restore EMS Art • Restore guidance services at EE and EMS • Reduce pay to participate • Provide additional buildings/grounds maint.

  6. Renew Emergency Levy • May 4, 2010 • 7.2 mills • 5 years • $2.7 million • NO INCREASE IN TAXES • NO ADDITIONAL REVENUE • Critical to everyday operations • 13% of operating budget = 50 people

  7. Renewal Levy - Facts • We continue to work lean • We recognize the state of the economy • We make no five year promise • State and local revenue are shrinking • Good stewards

  8. Concerns • State budget gap- $5-$10 billion • Projected loss to Elida FY 12- $1.6 to $2.1 million(what is coming?) • Tax delinquencies • Loss in state aid • Tax payer still hurting from recession • Unfunded mandates-HB 1

  9. WHAT HAVE WE DONE TO GET LEAN? • Staff cuts • Administrative cuts $239,155 • Administrative Wages-0% increase 2 yrs • Streamlined food service • Moved staff to PPO insurance plan • Moved to pay to participate • Passed a levy in 2005 to bring back specific programs • Reduce bus fuel consumption • Think long term • Savings on Retire/Rehire • Sharing on health premiums

  10. Continued • Withdrawal from ESC Alternative Program - $7,000 • Not replace mechanic - $58,472 • Hire Psychologist - $9,923 • 2004-05 one less teacher at EE • 2005-06 one less teacher at EE and HS • Partner with WCLA on software $14,000 • Review SF6 billing - $24,000

  11. Review Staffing Meal Policy American Express Bus Idle Share Ins Increases Bulk Paper Bid Property/Liability Diesel Grant Safe Route Grant Dir dep/email PO Hire maint. person Turn down thermostats Change drug company No health ins R/R New health plans Auto lights switches Bid projects MAC Grants Early bus buy What have we done to get lean?

  12. What have you done lately? • Review set points $74,000 • Reduce Teacher Academy $65,000 • Re-route buses(4) $84,444 • Reduce special ed teacher $76,102

  13. What will you do next year? • Consolidate choir position • Reduce MS teacher-(technology class) • Move Central Office secretary to HS • Reduce building budget • Lean on grant $ for technology • Work on reductions in health care • Reduce bus route • Review staffing

  14. Legislative Concerns/History • HB 920 Tax Reduction Factor • HB 152 Phantom Revenue • Budget Reduction Order • HB 95 Inventory Tax Phase Out • HB 282 Favored Charter Schools • HB 412 Mandated spending on repairs/educational supplies • SB 55 Increase in testing requirements • NCLB Increase in testing • 2008 State Budget Cuts • 2009 State Budget Cuts • HB 1 (Unfunded mandates) • Next State Budget $5-$10 billion hole

  15. Fund Raising Efforts • Fieldhouse Renovation $350,000 • Concession Building $150,000 • Locker/weight room $50,000

  16. WHO ARE WE? • Maintenance – 2 • Custodial – 14 • Food Service – 27 • Bus Drivers – 31 • Asst Tech Co-1 • Total 266 • 4 Buildings • 81 square miles • Students – 2,431 • Teachers- 149 • Nurse –1 • Guidance – 4 • Professionals – 17 • Secretaries – 14 • Aides – 6

  17. PERFORMANCE INDICATORS • Carry-over Growth 1-5%(update) • Strength of Carry-over - 60 day(update) • 85% Rule on Salaries and Benefits(update) • Review Levy Cycles • Debt to Total Assets • Residential Tax Rate • Per Pupil Spending (vs. other schools)

  18. 74Day Cash Balance! 60 DAY CASH BALANCE ALMOST A REALITY

  19. June 30 Carry-Over: A New Cycle • 1999 $ 936,422 21 days • 2000 $1,048,819 23 days • 2001 $ 758,675 17 days • 2002 $ 821,146 18 days • 2003 $ 360,933 8 days • 2004 $ 967,429 21 days • 2005 $1,865,900 39 days • 2006 $2,645,703 53 days • 2007 $3,496,376 68 days • 2008 $4,071,288 76 days • 2009 $4,127,565 74 days • 2010 $3,656,565 64 days • 2011 $2,492,978 43 days • 2012 $590,254 10 days • 2013 $(1,718,527) -30 days • 2014 $(4,445,843) -78 days

  20. Health Insurance • 1/1/09 Medical Rate Increase 15% • 1/1/09 Dental Rate Increase 20% • 1/1/09 New Plan MDHP Developed • 1/1/10 New High Deductible Plan • 1/1/10 Medical Rate Increase 20% • 1/1/10 Dental Rate Increase 20% • Meeting this year to introduce HDHP plan • Continue discussions on spousal coordination of benefits • What are you doing/seeing???

  21. General Fund

  22. General Fund Expenditures

  23. FOOD SERVICE

  24. Program Spending

  25. Special Education Costs • FY 07 $1,310,212 • FY 08 $1,421,808 • FY 09 $1,544,590

  26. AUDIT REPORT • Performed every year • Cost to taxpayers $16,000 • Cash basis (saves taxpayers $10,000-$13,000 each year) • Tests are performed on accounts payable, payroll, compliance with ORC, fund raising, athletics, food service, grants, etc. • Clean opinion • No adjustments

  27. ADMINISTRATIVE EXPENSES Administration: Salaries for administrators, office staff, and office supplies

  28. State Aid FY 2006 $7,434,281 FY 2007 $7,567,028 FY 2008 $7,511,293 FY 2009 $7,502,152 FY 2010 $7,454,097 FY 2011 $7,352,109 FY 2012 $5,079,869????

  29. TAX BASE

  30. STATE BUDGET BREAKDOWN • Primary & Secondary Education 35% • Medicaid 20% • Colleges 13%

  31. Real Estate Taxes • FY 06 $7,354,275 • FY 07 $8,177,224 • FY 08 $8,439,846 • FY 09 $8,374,682 • FY 10 $8,309,000

  32. Cost per building/per student

  33. State Budget Concerns-FY 2010 • CAT $ 1.3 billion new • Corporate Franchise Tax 1.1 billion loss • Tangible Property Tax 1.6 billion loss • Income Tax 2.1 billion loss • NET LOSS 3.5 billion in state revenue • 10 year job loss – 210,000 manufacturing • 10 year job loss- 4,000 Allen County • BUDGET GAP $5-$10 BILLION????

  34. Levy Timeline-Future Dates • May 2010 Renew Emergency Levy • Fall 2012, 2013 Renew PI Levy • 2012, 2013 Levy Discussion • 2012-2013 OSFC Issue • 2014,2015 Renew Emergency Levy

  35. Open Enrollment • FY 07 In $535,000 Out $1.3 million • FY 08 In $597,000 Out $1.4 million • FY 09 In $912,000 Out $1.5 million • FY 10 In $1.2 million Out $1.4 million

  36. Funding the Future-Diversify Revenue Stream • Medina-1st in state to pass Sales Tax for schools • Income Tax-Earned income only • Continue to communicate-always in levy mode • Strategic Planning on future levies

  37. 5 Year Goals • Evaluate HB 1 and unfunded mandates • Study state budget gap($10 billion???) • Continue to be lean/reduce spending • Continue to monitor health insurance (Health Savings Accounts, Spousal language, Mandate Generic Drugs)…impact of state pool • Enhance customer service • Maintain (–6%-0%) profit margin • Continue to review staffing needs • Monitor new legislation • Diversify revenue streams(conversation) • Others ???? (group discussion)

  38. Items of Concern • Hole in state budget • Loss of state income tax • Loss in homestead/rollback reimbursement • Tax delinquencies • Unemployment • Unfunded mandates • Health Care/BWC Increases • Utility Increases • Loss of tax valuation • Special Education Increases

More Related