NORTHRIDGE LOCAL SCHOOL DISTRICT - LICKING COUNTY SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEARS ENDED ACTUAL

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1 NORTHRIDGE LOCAL SCHOOL DISTRICT - LICKING COUNTY SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEARS ENDED ACTUAL JUNE 30, 2015, 2016, and 2017 FORECASTED FISCAL YEARS ENDING JUNE 30, 2018 THROUGH 2022 Forecast Provided By NORTHRIDGE LOCAL SCHOOL DISTRICT Treasurer's Office BRITT LEWIS, MBA - TREASURER/CFO May 21, 2018

2 NORTHRIDGE LOCAL SCHOOL DISTRICT Licking County Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2015, 2016, 2017 Forecasted Fiscal Year Ending June 30, 2018 through 2022 Actual Forecasted Fiscal Year Fiscal Year Fiscal Year Average Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Change Revenues General Property Tax (Real Estate) 6,697,082 7,027,710 7,226, % 7,372,726 7,396,208 6,390,215 5,661,479 5,742, Tangible Personal Property % Income Tax 76,201 45,093 34, % $30,692 $0 $0 $0 $ Unrestricted State Grants-in-Aid 4,346,366 4,591,668 4,719, % 4,700,967 4,653,756 4,653,306 4,652,847 4,652, Restricted State Grants-in-Aid 36,435 43,490 53, % 54,096 54,637 55,184 55,736 56, Restricted Fed. SFSF Fd. 532 FY10&11/Ed Jobs Fd.504 FY % Property Tax Allocation 910, , , % 965, , , , , All Other Revenues 764, , , % 835, , , , , Total Revenues 12,831,069 13,379,101 13,917, % 13,959,951 13,921,190 12,798,022 11,965,477 12,067,354 Other Financing Sources Proceeds from Sale of Notes % State Emergency Loans and Advancements (Approved) % Operating Transfers-In 7,444-3, % Advances-In % 10,000 10,000 10,000 10,000 10, All Other Financing Sources 0 2,386 7, % 23,113 5,000 5,000 5,000 5, Total Other Financing Sources 7,444 2,386 11, % 33,113 15,000 15,000 15,000 15, Total Revenues and Other Financing Sources 12,838,513 13,381,487 13,928, % 13,993,064 13,936,190 12,813,022 11,980,477 12,082,354 Expenditures Personal Services $5,274,910 $5,534,759 $5,815, % $5,847,551 $5,849,724 $5,851,941 $5,854,202 $5,856, Employees' Retirement/Insurance Benefits 1,653,430 1,890,450 1,931, % $1,950,100 $2,040,664 $2,118,420 $2,202,374 $2,293, Purchased Services 4,254,436 4,675,857 4,594, % $4,767,279 $4,947,045 $5,134,258 $5,329,260 $5,532, Supplies and Materials 738, , , % $633, , , , , Capital Outlay 1,936,162 88,959 19, % $206, , , , , Intergovernmental % Debt Service: Principal-All (Historical Only) 75,000 80,000 80, % Principal-Notes - 14,744 14, % Principal-State Loans % Principal-State Advancements % Principal-HB 264 Loans % $97,425 $97,425 $80,000 $0 $ Principal-Other % Interest and Fiscal Charges 22,206 21,205 17, % $10,734 $10,734 $5,367 $0 $ Other Objects 462, , , % $220,466 $226,544 $232,794 $239,220 $245, Total Expenditures $14,417,474 13,124,183 13,308, % 13,732,889 14,030,317 14,300,246 14,522,256 14,845,161 Other Financing Uses Operating Transfers-Out - 611, , % Advances-Out % 10,000 10,000 10,000 10,000 10, All Other Financing Uses , % $6,263 $0 $0 $0 $ Total Other Financing Uses , , % 16,263 10,000 10,000 10,000 10, Total Expenditures and Other Financing Uses 14,417,825 13,735,867 13,648, % 13,749,152 14,040,317 14,310,246 14,532,256 14,855, Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses (1,579,312) (354,380) 280, % 243,912 (104,127) (1,497,224) (2,551,779) (2,772,807) Cash Balance July 1 - Excluding Proposed Renewal/Replacement and New Levies 8,548,798 6,969,486 6,615, % 6,895,724 7,139,636 7,035,509 5,538,285 2,986, Cash Balance June 30 6,969,486 6,615,106 6,895, % 7,139,636 7,035,509 5,538,285 2,986, , Estimated Encumbrances June , , , % 65,000 65,000 65,000 65,000 65,000 Reservation of Fund Balance Textbooks and Instructional Materials % Capital Improvements % Budget Reserve 60 Days % 2,288,815 2,338,386 2,383,374 2,420,376 2,474, DPIA % Fiscal Stabilization % Debt Service % Property Tax Advances % Bus Purchases % Subtotal % 2,288,815 2,338,386 2,383,374 2,420,376 2,474, Fund Balance June 30 for Certification of Appropriations 6,720,268 6,370,286 6,751, % 4,785,821 4,632,123 3,089, ,130 (2,325,495) Northridge~ /8/2018 1

3 NORTHRIDGE LOCAL SCHOOL DISTRICT Licking County Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2015, 2016, 2017 Forecasted Fiscal Year Ending June 30, 2018 through 2022 Actual Forecasted Fiscal Year Fiscal Year Fiscal Year Average Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Change Revenue from Replacement/Renewal Levies Income Tax - Renewal % Property Tax - Renewal or Replacement % - - 1,092,000 2,100,000 2,100, Cumulative Balance of Replacement/Renewal Levies % - - 1,092,000 3,192,000 5,292, Fund Balance June 30 for Certification of Contracts, Salary Schedules and Other Obligations 6,720,268 6,370,286 6,751, % 4,785,821 4,632,123 4,181,911 3,693,130 2,966,506 Revenue from New Levies Income Tax - New 0.0% Property Tax - New 0.0% Cumulative Balance of New Levies % Revenue from Future State Advancements - 0.0% Unreserved Fund Balance June 30 6,720,268 6,370,286 6,751, % 4,785,821 4,632,123 4,181,911 3,693,130 2,966,506 Northridge~ /8/2018 2

4 Northridge Local School District Licking County Notes to the Five Year Forecast General Fund Only May 21, 2018 Introduction to the Five Year Forecast All school districts in Ohio are required to file a five (5) year forecast by October 31, and May 31, in each fiscal year. The five year forecast includes three years of actual and five years of projected general fund revenues and expenditures. Fiscal year 2018 (July 1, 2017-June 30, 2018) is the first year of the five year forecast and is considered the baseline year. Our forecast is being updated to reflect the most current economic data available to us for the May 2018 filing. Revenues: The overview of revenues shows that we are substantially on target with original estimates at this point in the year. Total General Fund revenues (line 1.07) are estimated to be $13,959,951 or 2.5% higher than the October forecasted amount of $13,623,191. This indicates the October forecast of revenue receipts was 97.5% accurate. The increase in revenue from the October forecast is due to higher than expected increase in property tax values as a result of the 2017 tax reappraisal. Expenditures: At this time operating expenditures on Line 4.50 for FY18 are estimated to be on target with the projection of $13,751,002. Unreserved Ending Cash Balance: With overall revenue being slightly higher and overall expenditures on target with estimates we expect our unencumbered ending cash balance to be up slightly to end around $4,785,821 for FY18. Forecast Risks and Uncertainty: A five year financial forecast has risks and uncertainty not only due to economic uncertainties but also due to state legislative changes that will occur in the spring of 2019 and 2021 due to deliberation of the next two (2) state biennium budgets for FY20-21 and FY22-23, both of which affect this five year forecast. We have estimated revenues and expenses based on the best data available to us at the time of this forecast. The items below give a short description of the current issues and how they may affect our forecast long term: I. Class I values increased $19.6 million or 7.7% and Class II values increased $1.2 million or 18.8% in the tax year Public Utility values increased by $788,350 in Overall, all value in the district rose 7.13% in total. II. III. The State Budget represents 41% of district revenues, which means it is a significant area of risk to revenue. The risk comes in FY20 and beyond if the state economy worsens or if the funding formula in future state budget reduces funding to our district. There are two future State Biennium Budgets covering the period from FY20-21 and FY22-23 in this forecast. Future uncertainty in both the state foundation funding formula and the state s economy makes this area an elevated risk to district funding long range through FY22. There are many provisions in the current state budget bill HB49 that will continue to draw funds from our district through continuing school choice programs such as College Credit Plus and increases in 3

5 amounts deducted from our state aid in the school years. The cost of each Peterson Special Needs voucher and Autism Scholarship Program increased sharply FY16 from $20,000 to $27,000 each, a 35% increase. College Credit Plus costs continue to increase as this program becomes more understood. These are examples of new choice programs that cost the district money. Expansion or creation of programs such as these exposes the district to new expenditures that are not currently in the forecast. We are monitoring any new threats to our state aid and increased costs very closely. IV. Patient Protection and Affordable Care Act (PPACA) This program was approved March 23, 2010 along with the Health Care and Education Reconciliation Act. It is uncertain to what extent the implementation of PPACA will cost our district in additional funds especially since it is being reviewed carefully at the federal level for amendment or repeal. We are not certain what these added costs may be but there are taxes mandated by the act which we are aware of. Longer-term, a significant concern is the 40% Cadillac Tax but in December 2017 this was delayed until 2022 by congress. This tax would be imposed on plans whose value of benefits exceeds $10,200 for individual plans and $27,500 for family plans. The rules and implementation of the PPACA is an ongoing issue we are watching closely to evaluate the effect on our district. V. Labor relations in the district have been amicable with all parties working for the best interest of students and realizing the resource challenges the district faces. We believe as the district moves forward a strong working relationship will continue. The major lines of reference for the forecast are noted below in the headings to make it easier to relate the assumptions made for the forecast item and refer back to the forecast. It should be of assistance to the reader in understanding the district forecast by reviewing the assumptions noted below. If you would like further information about the forecast, please feel free to contact Mr. Britt Lewis, MBA - Treasurer/CFO of Northridge Local Schools General Fund Revenue, Expenditure and Ending Cash Balance: General Fund Revenue, Expenditures & Cash Balance $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 Emergency Levy Expires 12/31/19 $6,000,000 $4,000,000 $2,000,000 $- Act Act Act Est Est Est Est Est Revenue Expenditures Ending Bal. 4

6 Revenue Assumptions Estimated General Fund Operating Revenue for FY18 General Fund Revenues Estimated 2018 $ 13,959,951 Other State 6.9% State Foundation 34.1% Real Estate Taxes 52.8% State Sources 41.% Other Local 6.2% Tang. Tax 0.0% Local Sources 59.% Real Estate Value Assumptions Line # Property Values are established each year by our County Auditors based on new construction, demolitions, BOR/BTA activity and complete reappraisal or updated values. The District collects property taxes from Licking, Knox and Delaware Counties. A reappraisal update of the district property value occurred in 2014 for collection in calendar year Class I property values increased 14.4% as a result of the update. The increase in Class I values was primarily due to a sharp increase in Current Agricultural Use Value (CAUV) due to 30% of our Class I property being agricultural. Class II (Commercial/Industrial values) values did not experience any significant change. An update and reappraisal is occurred again in tax year 2017 for collection in FY18. Class I values increased $19.6 million or 7.7% and Class II values increased $1.2 million or 18.8% in the tax year 2017 reappraisal. In Tax Year 2017 PUPP values rose by $783,350, a 4% increase due to additional investment in the area by AEP. This will increase tax collections through the forecast period. ESTIMATED ASSESSED VALUE (AV) BY COLLECTION YEARS Estimated Estimated Estimated Estimated Estimated TAX YEAR 2017 TAX YEAR 2018 TAX YEAR 2019 TAX YEAR 2020 TAX YEAR 2021 Classification Collect 2018 Collect 2019 Collect 2020 COLLECT 2021 COLLECT 2022 Res./Ag. $274,462,720 $275,312,720 $276,162,720 $285,297,602 $286,147,602 Comm./Ind. 7,296,957 7,346,957 7,396,957 7,446,957 7,496,957 Public Utility Personal Property (PUPP) 20,470,020 20,570,020 20,670,020 20,770,020 20,870,020 Tangible Personal Property (TPP) Total Assessed Value $302,229,697 $303,229,697 $304,229,697 $313,514,579 $314,514,579 5

7 ESTIMATED REAL ESTATE TAX (Line #1.010) Est. General Property Taxes to Line #1.010 $7,372,726 $7,396,208 $6,390,215 $5,661,479 $5,742,307 Property tax levies are estimated to be collected at 100% of the annual amount. In general, 55% of the Res/Ag. and Comm/Ind. are expected to be collected in February tax settlements and 45% collected in August tax settlements. Public Utility tax settlements (PUPP taxes) are estimated to be received 50% in February and 50% in the August settlement from three County Auditors. Renewal and Replacement Levies Line #11.02 The levy passed in 2015 will expire on December 31, Renewal revenue has been moved to Line from Line 1.01, 1.02 and 2.05 of the forecast in FY20. New Tax Levies Line # No new levies are modeled in this forecast. Income Tax Line #1.03 The District s 1% school district income tax was non-renewed in November As a result, the amount estimated for FY18 is for delinquent payments and no income tax collections are projected in FY19 and beyond. Other Local Revenues Line #1.060 Revenues from all other sources are based on historical growth patterns. This revenue largely consists of rental income, open enrollment, tuition payments, and Medicaid reimbursements, parking pass fees, donations, grade level fees and investment income. The majority of other revenues are comprised of open enrollment and tuition revenue. Open enrollment is expected to remain mostly steady with slight increases based on anticipated increases in state per pupil funding. Rental of property mainly consists of revenue received from Peterman for use of the District s bus facilities. The district maintains a conservative investment philosophy, investing predominately in Star Ohio, CD s, US Agencies and interest bearing sweep accounts. Interest rates are estimated to remain low for the forecast. Open Enrollment Gross $633,098 $639,429 $645,823 $652,281 $658,804 Interest 6,116 6,177 6,239 6,301 6,364 Rentals 18,069 18,250 18,433 18,617 18,803 Catastrophic Cost Reimbursement Tuition SF-14 & SF-14H 127, , , , ,115 Medicaid, Erate and Class fees 50,697 50,697 50,697 50,697 50,697 Total Line # $835,901 $843,753 $851,684 $859,693 $867,783 State Taxes Reimbursement/Property Tax Allocation Line a) Rollback and Homestead Reimbursement Rollback funds are reimbursements paid to the district from Ohio for tax credits given owner occupied residences equaling 12.5% of the gross property taxes charged residential taxpayers on tax levies passed prior to September 29, HB59 eliminated the 10% and 2.5% rollback on new levies approved after September 29, 2013 which is the effective date of HB59. HB66 the FY06-07 budget bill previously eliminated 10% rollback on Class II (commercial and industrial) property. 6

8 Homestead Exemptions are also credits paid to the district from the state of Ohio for qualified elderly and disabled. In 2007 HB119 expanded the Homestead Exemption for all seniors over age 65 years of age or older or who are disabled regardless of income. Effective September 29, 2013 HB59 changed the requirement for Homestead Exemptions. Individual taxpayers who do not currently have their Homestead Exemption approved or those who do not get a new application approved for tax year 2013, and who become eligible thereafter will only receive a Homestead Exemption if they meet the income qualifications. Taxpayers who had their Homestead Exemption as of September 29, 2013 will not loose it going forward and will not have to meet the new income qualification. This will slow the growth of homestead reimbursements to the district, and as with the rollback reimbursements above, increase the taxes collected locally on taxpayers. b) Tangible Personal Property Reimbursements Fixed Rate The district no longer receives any fixed rate reimbursement. c) Tangible Personal Property Reimbursements Fixed Sum The district receives no fixed sum levy reimbursements as its emergency levy was not in place by 2004 to qualify for TPP fixed sum funding. Summary of State Tax Reimbursement Line #1.050 a) Rollback and Homestead $965,569 $972,836 $847,633 $735,722 $748,593 b) TPP Reimbursement - Fixed Rate c) TPP Reimbursement - Fixed Sum Total Tax Reimb./Prop. Tax Allocations #1.050 $965,569 $972,836 $847,633 $735,722 $748,593 Comparison of Local Revenue and State Revenue: $9,000,000 General Fund Local Revenue Vs. State $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Act Act Act Est Est Est Est Est A= Actual E= Estimated Local Revenue State Revenue 7

9 State Foundation Revenue Estimates A) Unrestricted State Foundation Revenue Line #1.035 HB49 largely retains the current funding formula used to determine the amount and allocation of state aid to school districts, however there were various changes made to the formula for FY18 and FY19. The amounts estimated for state funding are based on component computations from the most recent State Foundation Payment Report for FY18. Estimates for FY19 state aid are based on ODE simulations of HB49 for FY19. We are projected to be a Guarantee district regarding state funding in FY18. HB49 continues to use the State Share Index (SSI) as a key district wealth measure. The SSI is the formula s measure of a districts capacity to raise local revenue. The higher a district s ability to raise taxes based on wealth the lower the SSI will be, and vice versa. The index is derived from a district s wealth index, which is based on a valuation index, and for certain districts, an income index. Property wealth per pupil is still the major factor in the SSI. Generally, the higher the property valuation per pupil, the lower a district s SSI and therefor the percentage of state aid. The SSI for FY18 and FY19 will be calculated using Tax Year 2014, 2015, and 2016 average assessed values for the district. It will be calculated once for both fiscal year 18 and 19. The SSI is applied to the per pupil opportunity grant calculation and many of the other categorical funding items in the state foundation formula as noted below: 1) Opportunity Grant Per pupil amount increased.17% from $6,000 in FY17 to $6,010 in FY18 and.17% to $6,020 in FY19. Well below inflation rates. 2) Targeted Assistance Tier I based on wealth and Tier II based on percentage of district agricultural assessed value. Higher the percentage of agricultural value, higher the targeted assistance. 3) Special Education Additional Aid Based on six (6) weighted funding categories of disability. 4) Limited English Proficiency Based on three (3) funded categories based on time student enrolled in schools. 5) Economically Disadvantaged Aid- Based on number and concentration of economically disadvantaged students compared to state average. 6) K-3 Literacy Funds - Based on district K-3 average daily membership and two funded Tiers. 7) Gifted Funds Based on average daily membership at $5.05 in FY18 & FY19. 8) Career-Technical Education Funds Based on career technical average daily membership and five (5) weighted funding categories students enrolled in. Funding guaranteed at FY17 levels individually and is in addition to the Cap in FY18 and FY19. 9) Transportation Aid Funding based on total ridership rather than qualifying ridership in determining statewide cost per rider. Reduces state minimum share from 50% to 37.5% in FY18 and 25% in FY19. HB49 continues additional funds that can be earned by a district or is intended to help a district who has an undue burden or inability to raise local revenue; however, some items are now included in CAP district payments: 1) Capacity Aid Provides additional funding for districts where income generated for one mill of property tax is below the state median for what is generated. Included in FY18 and FY19 Guarantee payments and moved to be inside the Cap amount for districts. Not in addition to the Cap payments. 2) Transportation Supplement Provides additional funding for districts with rider density (riders per square mile) less than 35 students in FY18 and 50 in FY19. Provides additional funding based on rider density and the number of miles driven by the school buses. Included in FY18 and FY19 Guarantee payments and moved to be inside the Cap amount for districts. Not in addition to the Cap payments. 3) 3 rd Grade Reading Proficiency Bonus - Provides a bonus to districts based on third grade reading results, is included in FY18 & 19 guarantee at FY17 levels and is in addition to the Cap payments. 8

10 4) High School Graduation Rate Bonus - Provides a bonus to districts based on high school graduation rates up to approximately $450 per student and is included in FY18 & 19 guarantee at FY17 levels and is in addition to the Cap payments. Transitional Guarantee Phase-Out- For the first time HB49 includes a phase-out of funding for districts on the guarantee. If a guarantee district s average daily membership (ADM) over three (3) years from FY14-FY16, on average fell by 10% or more, they will loose 5% of their funding from FY17 levels. If the average ADM loss is less than 5% then they will be guaranteed at 100% of FY17 levels. If average ADM loss is between 5% and 10% loss then funding is cut on a sliding scale of loss up to 5%. We are projected to be a guarantee district at 100% of FY17 levels for FY18 and FY19. Our current SFPR estimates for FY18 are using March #2 SFPR average daily membership (ADM) and holding student numbers steady through FY22. Beginning in FY16, the state changed the way it measures student ADM. Student counts are now supposed to be updated October 31, March 31, and June 30 of the fiscal year. In most cases the district will not know its actual student funded ADM until the end of June 2018, and then there will be adjustments into the succeeding fiscal year. Future State Budgets: Our funding status for the FY20-22 will depend on two (2) new state budgets which are unknown. We have been very conservative in our estimates of future state funding lowering per pupil growth to.5% per year FY20-FY22, due to the potential for the economy to be slower. On November 3, 2009 Ohio voters passed the Ohio casino ballot issue. This issue allowed for the opening of four (4) casinos one each in Cleveland, Toledo, Columbus and Cincinnati. As of March 4, 2013 all four (4) casinos were open for business and generating Gross Casino Tax Revenues (GCR). Thirty-three percent (33%) of the gross casino revenue will be collected as a tax. School districts will receive 34% of the 33% GCR that will be paid into a student fund at the state level. These funds will be distributed to school districts on the 31 st of January and August each year which began for the first time on January 31, The state indicated recently that revenues from casinos are not growing robustly as originally predicted but are still growing slowly as the economy has improved. Actual numbers generated for FY18 statewide were 1,791,647 students at $51.37 per pupil. That is a decline of 4 tenths of 1% percent from the prior year. For FY19-22 we estimated another 4 tenths of 1% decline in pupils to 1,784,480 and GCR increasing to $92.9 million or $52 per pupil. We will increase estimates for out years when actual casino revenues show signs of stronger increases. Basic Aid-Unrestricted $4,599,787 $4,552,475 $4,551,928 $4,551,376 $4,550,818 Additional Aid Items 39,164 39,164 39,164 39,164 39,164 Basic Aid-Unrestricted Subtotal $4,638,951 $4,591,639 $4,591,092 $4,590,540 $4,589,982 Ohio Casino Commission ODT 62,016 62,117 62,214 62,307 62,395 Total Unrestricted State Aid Line # $4,700,967 $4,653,756 $4,653,306 $4,652,847 $4,652,377 B) Restricted State Revenues Line # HB49 continues funding two restricted sources of revenue, Economically Disadvantaged and Career Technical funds. The amount of the Economically Disadvantaged Aid is estimated to grow by 1% each remaining year of the forecast. 9

11 Economically Disadvantaged Aid $25,017 $25,267 $25,520 $25,775 $26,033 Career Tech - Restricted 29,079 29,370 29,664 29,961 30,261 Total Restricted State Revenues Line #1.040 $54,096 $54,637 $55,184 $55,736 $56,294 C) Restricted Federal Grants in Aid line #1.045 The district received its final payment of Ed Jobs money in FY13. These funds will no longer be available. Summary of State Foundation Unrestricted and Restricted Funds Unrestricted Line # $4,700,967 $4,653,756 $4,653,306 $4,652,847 $4,652,377 Restricted Line # ,096 54,637 55,184 55,736 56,294 Fed. Grants - SFSF & Ed Jobs Line # Total State Foundation Revenue $4,755,063 $4,708,393 $4,708,490 $4,708,583 $4,708,671 Short-Term Borrowing Lines #2.010 & Line #2.020 There is no short term borrowing planned in this forecast at this time from any sources. Transfers In / Return of Advances Line #2.040 & Line #2.050 Returns of advances to other funds from the previous year comprise most of the historical revenue in this category Transfers In - Line $0 $0 $0 $0 $0 Advance Returns - Line $10,000 $10,000 $10,000 $10,000 $10,000 Total Transfer & Advances In $10,000 $10,000 $10,000 $10,000 $10,000 All Other Financial Sources Line #2.060 & Line # This funding source is typically a refund of prior year expenditures that are very unpredictable. FY18 FY19 FY20 FY21 FY22 Refund of prior years expenditures $23,113 $5,000 $5,000 $5,000 $5,000 10

12 Expenditures Assumptions Estimated General Fund Operating Expenditures for FY18: General Fund Operating Expenditures Est. FY2018 $13,732,889 Wages 42% Debt Pmts. 1% Other 2% Capital 1% Benefits 14% Materials 5% Services 35% Wages Line #3.010 The model reflects a base and step increase of 0% FY18-FY22. Base Wages $5,638,880 $5,638,880 $5,638,880 $5,638,880 $5,638,880 Increases/ Merit Based Pay Steps & Training/Performance Pay Growth Unfunded Recapture Substitutes & Supplementals 108, , , , ,628 Severance & Ret. Incentive 100, , , , ,000 Staff Reductions Total Wages Line $5,847,551 $5,849,724 $5,851,941 $5,854,202 $5,856,508 Fringe Benefits Estimates Line 3.02 This area of the forecast captures all costs associated with benefits and retirement costs, which all except health insurance being directly related to the wages paid. The district pays 14% of each dollar paid in wages to either the State Teachers Retirement System or the School Employees Retirement System as required by Ohio law. A) STRS/SERS As required by law the BOE pays 14% of all employee wages to STRS or SERS. B) Insurance Estimated increases are 8% in FY This is based on our current employee census and claims data. 11

13 C) Workers Compensation & Unemployment Compensation Workers Compensation is expected to remain at about.55% of wages in FY18-FY22. Unemployment costs are expected to remain relatively low at.2% of wages in FY18 and beyond. D) Medicare Medicare will continue to increase at the rate of increases in wages. Contributions are 1.45% for all new employees to the district on or after April 1, These amounts are growing at the general growth rate of wages. Summary of Fringe Benefits Line #3.020 STRS/SERS $917,435 $917,739 $918,049 $918,366 $918,689 Insurance's 895, ,490 1,044,889 1,128,480 1,218,758 Workers Comp/Unemployment 19,663 37,789 37,804 37,818 37,834 Medicare 84,321 84,789 84,821 84,853 84,886 Other/Tuition 32,857 32,857 32,857 32,857 32,857 Total Line $1,950,100 $2,040,664 $2,118,420 $2,202,374 $2,293,024 Purchased Services Line #3.030 Purchased services consist of items such as property services, utilities, open-enrollment, bus services, legal services and payments to community schools. An overall inflation of 5% is being estimated for this category of expenses for FY Base Services & ESC $1,462,825 $1,506,710 $1,551,911 $1,598,468 $1,646,422 Open Enrollment Deduction 728, , , , ,438 Community School Deductions 332, , , , ,038 Tuition/Sp. Ed. Scholarships/College Credit + 451, , , , ,794 Transportation Contract 1,439,561 1,482,748 1,527,230 1,573,047 1,620,238 Rentals 59,387 61,169 63,004 64,894 66,841 Utilities 293, , , , ,635 Total Line $4,767,279 $4,947,045 $5,134,258 $5,329,260 $5,532,406 Supplies and Materials Line #3.040 Supplies and materials consists of fuel, computers, textbooks, instructional supplies, maintenance supplies and custodial supplies. These are all necessary to help facilitate and meet the operational needs and education goals of the District. For FY 18-22, supplies and materials are expected to increase by 2% mainly due to an increase in the projected cost of textbook and instructional materials. Supplies $633,334 $646,001 $658,921 $672,099 $685,541 Budget Reserves or (Reductions) Total Line $633,334 $646,001 $658,921 $672,099 $685,541 Equipment Line # Capital outlay expenditures are related to the acquisition of, or additions to, fixed assets. Included are expenditures for land or existing buildings, improvements of grounds, construction of buildings, additions to buildings, initial and additional equipment, furnishings and vehicles. The district facilities are in dire need of attention and in future years capital costs are projected to increase. Expenditures for FY are expected to 12

14 increase of 3% per year. In addition to this equipment line it will be critical for the District to secure additional funding through a permanent improvement levy (PI). Capital Outlay $206,000 $212,180 $218,545 $225,101 $231,854 Replacement Bus Purchases Peterman Contribution Total Line $206,000 $212,180 $218,545 $225,101 $231,854 Debt Service Line #4.010/4.050/4.060 House Bill 264 allows for the issuance of un-voted debt for the purpose of financing energy saving capital improvements. The approval of such projects is processed through the Ohio School Facilities Commission. The House Bill 264 debt was issued in 2005 in the amount of $995,000 and will mature on 12/1/2019. HB 264 Principal Line # $97,425 $97,425 $80,000 $0 $0 Interest on TANS & HB 264 Total Line $10,734 $10,734 $5,367 $0 $0 Other Expenses Line #4.300 Other expenses consist of membership dues, treasurer fees and dues, bank fees, election expenses and payments to the Licking County Educational Service Center (LCESC). County Auditor & Treasurer Fees $117,610 $121,138 $124,772 $128,515 $132,370 County ESC 53,554 54,625 55,718 56,832 57,969 Other expenses 49,302 50,781 52,304 53,873 55,489 Budget Reductions Increased A&T Fees for New Levies Total Line $220,466 $226,544 $232,794 $239,220 $245,828 13

15 Total Expenditure Categories Actual FY15 through FY17 and Estimated FY18 through FY22 General Fund Operating Expenditures Actual FY2015 Through Estimated 2022 $16,000,000 $14,000,000 $12,000,000 Other Expenses Capital $10,000,000 Material $8,000,000 Services $6,000,000 Benefits Wages $4,000,000 $2,000,000 $0 Act Act Act Est Est Est Est Est Transfers Out/Advances Out Line# and This account group covers fund to fund transfer and end of year short term loans from the General Fund to other funds until they have received reimbursements and can repay the General Fund. Advances are limited in impact to the General Fund as the amounts are repaid as soon as dollars are received in the debtor fund. Operating Transfers Out Line #5.010 $0 $0 $0 $0 $0 Advances Out Line # ,000 10,000 10,000 10,000 10,000 Total $10,000 $10,000 $10,000 $10,000 $10,000 Encumbrances Line#8.010 These are outstanding purchase orders that have not been approved for payment as the goods were not received in the fiscal year in which they were ordered. Estimates are based on historic trends. FY18 FY19 FY20 FY21 FY22 Estimated Encumbrances $65,000 $65,000 $65,000 $65,000 $65,000 Reservation of Fund Balance for Budget Reserve Line#9.03 The district has established a Budget Reserve in the five year forecast beginning in FY15. The budget reservation equates to 60 days operating cash or two months of operations. These funds are withheld from being available for appropriation and for certification of 412 certificates. 14

16 Ending Unencumbered Cash Balance The Bottom-line Line# This amount must not go below $-0- or the district General Fund will violate all Ohio Budgetary Laws. Any multi-year contract which is knowingly signed which results in a negative unencumbered cash balance is a violation of , ORC punishable by personal liability of $10,000, unless an alternative 412 certificate can be issued pursuant to HB153 effective September 30, Below is the estimated cash balance after considering the Budget Reserve and including the renewal of the levy that expires on December 31, FY18 FY19 FY20 FY21 FY22 Ending Cash Balance $4,785,821 $4,632,123 $4,181,911 $3,693,130 $2,966,506 General Fund Ending Cash Balance Revenues with Renewal Levy vs Expenditure $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Act Act Act Est Est Est Est Est A= Act E= Est Revenue W/Renewals Expenditures Ending Cash Balances 60 Day Cash Ratio True Cash Days Ending Balance Another way to look at ending cash is to state it in True Cash Days. In other words, how many days could the district operate at year end if no additional revenues were received. This is the Current Years Ending Cash Balance divided by (Current Years Expenditures/365 days) = number of days the district could operate without additional resources or a severe resource interruption. The government finance officers association recommends no less than two (2) months or 60 days cash is on hand at year end but could be more depending on each districts complexity and risk factors for revenue collection. This is calculated including transfers as this is a predictable funding source for other funds such as capital, athletics and severance reserves. As noted in the chart on the following page the levy renewal in 2019 is critical for the district to have adequate cash reserves in FY20. Balances in FY21 are estimated to be below a minimum 30 day level of cash at this time. 15

17 Ending Cash Balance in True Cash Days-Without Levy Renewal (50) Act Act Act Est Est Est Est Est (57) (100) 16