What Treasurers Want Board Members to Know

Transcription

1 What Treasurers Want Board Members to Know Matt Bunting CFO/Treasurer Athens CSD Mike Sobul CFO/Treasurer Granville EVSD Ernie Strawser CFO/Treasurer Norwood CSD OSBA Capital Conference November 12, 2012

2 Sustainability What are the Indicators? How do we compare to Benchmarks? What are our Strategies?

3 Athens City Schools

4 An Indicating Trend 13,000 Total Per Pupil Expenditures 12,000 $11,799 11,000 $10,336 Per Pupil $ 10,000 9,000 8,000 $7,832 7,000 6,000 5, Fiscal Years PPE $ Increased 69.2% over the past 10 Years Athens City School District

5 The Challenge Income and Expense Simplified Statement Forecasted An Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Chan Beginning Cash Balance 9,449,869 8,314,680 4,921,918 1,873,374 (318,512) Revenue 28,803,048 28,006,255 28,325,499 29,030,784 27,784,041 Proposed Renew/Replacement Levies 0 0 1,752,593 3,398,334 5,691,909 Proposed New Levies Expenditures (29,938,237) (31,399,017) (33,126,637) (34,621,003) (36,146,193) Revenue Surplus or Deficit (1,135,189) (3,392,762) (3,048,544) (2,191,886) (8,362,152) Ending Cash Balance 8,314,680 4,921,918 1,873,374 (318,512) (8,680,664) $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- $(2,000,000) $(4,000,000) $(6,000,000) $8,314,680 Projected End of Year Balances $4,921,918 $1,873,374 ($318,512) $(8,000,000) $(10,000,000) ($8,680,664) Fiscal Years Athens City School District

6 Identifying Budget Reconciliation Potential Athens City School District

7 Return on Investment Athens City School District

8 The Results Income and Expense Simplified Statement Projected Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Beginning Balance 8,263,888 7,128,458 6,531,082 5,450,829 3,548,184 + Revenue 28,493,002 27,007,142 25,795,819 23,480,515 22,644,107 + Proposed Renew/Replacement Levies 1,537,763 3,297,220 5,934,737 6,957,281 + Proposed New Levies 250, , , , ,000 Expenditures (29,878,432) (29,642,281) (30,673,293) (31,817,897) (33,071,712) = Revenue Surplus or Deficit (1,135,430) (597,376) (1,080,253) (1,902,645) (2,970,324) Ending Balance 7,128,458 6,531,082 5,450,829 3,548, ,860 8,000,000 Projected End of Year Balances 7,000,000 6,000,000 5,000,000 4,000,000 $3,548,184 3,000,000 2,000,000 1,000, Athens City School District

9 Granville Exempted Village Schools

10 Revenue vs. Expenditures

11 Cash Balance

12 Enrollment

13 Enrollment

14 Enrollment Sharply declining Slowly Increasing

15 Norwood City Schools

16 Identify Challenges Projected Excess of Revenues Over (Under) Expenditures $0 -$1,000,000 -$2,000,000 -$3,000,000 -$4,000,000 -$5,000,000 -$6,000,000 -$7,000,000 -$8,000,000 -$9,000, Fiscal Year Cut Cost (we spend too much) Stabilize Levies Determine Service Levels Taxpayer Permission Too Much Red

17 Students Served

18 The Response Past Decisions Average Annual Percentage Change: Norwood City 4.60% Average of 5 Most Similar 3.12% Consumer Price Index (CPI) 2.51%

19 Cost Benchmark

20 $0 -$1,000,000 -$2,000,000 -$3,000,000 -$4,000,000 -$5,000,000 -$6,000,000 -$7,000,000 -$8,000,000 -$9,000,000 Projected Excess of Revenues Over (Under) Expenditures Fiscal Year Cut Cost (we spend too much) Stabilize Levies Determine Service Levels Taxpayer Permission Too Much Red Millions $27 $26 $26 $25 $25 $24 $24 $23 Revenue vs. Expenditures Revenue Renew/Replacement Levies New Levies Expenditures

21 Forecasts Can Change

22 Forecasts Change Trends Do Not Percentage Variance vs. Dollar Variance Spot the Trends The Main Thing Reversals are Unusual Decisions will bend

23 Any School District Financial Forecast FORECASTED Simplified Forecast General Property Tax (Real Estate) 13,515,275 13,425,184 13,409,067 13,503,927 13,582,193 Revenue: Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Tangible Personal Property Tax 809, , , , , Income Tax Unrestricted Grants in Aid 7,263,195 7,206,375 7,180,504 7,245,181 7,225, Restricted Grants in Aid 37,787 37,787 37,787 37,787 37, Restricted Federal Grants in Aid SFSF 26, Property Tax Allocation 3,076,390 3,080,673 3,097,165 3,107,942 3,112, All Other Operating Revenues 666, , , , ,652 Simplified Forecast Total Revenue 25,395,078 25,227,798 25,201,333 25,370,504 25,434, Total Other Financing Sources 238, Total Revenues and Other Financing Sources 25,633,696 25,227,798 25,201,333 25,370,504 25,434,327 Expenditures: Personnel Services 12,491,516 12,294,399 12,318,987 12,343,625 12,368, Employees' Retirement/Insurance Benefits 4,349,364 4,525,771 4,899,315 5,186,654 5,502, Purchased Services 5,057,357 5,218,217 5,331,490 5,446,463 5,563, Supplies and Materials 608, , , , , Capital Outlay 249, , , , , Other Objects 362, , , , , Total Expenditures 23,118,203 23,322,916 23,874,854 24,319,810 24,795, Total Other Financing Uses 1,445,000 1,445,000 1,445,000 1,445,000 1,445, Total Expenditures and Other Financing Uses 24,563,203 24,767,916 25,319,854 25,764,810 26,240,183 Excess of Rev & Other Financing Uses Over (Under) Expenditures and Other Financing Uses 1,070, ,882 (118,521) (394,306) (805,856) Cash Balance July 1 Excluding Proposed Renewal/ Replacement and New Levies 3,521,722 4,592,214 5,052,096 4,933,575 4,539, Cash Balance 4,592,214 5,052,096 4,933,575 4,539,269 #####

24 The Main Thing is to Keep the Main Thing the Main Thing

25 Dollars vs. Percents 2017 Original Cash Balance $3,733, % Revenue Variance 2013 $271,471 Number of Years 5 $1,357,355 Revised Cash Balance $5,090,768

26 Forecasts Change Trends Do Not Percentage Variance vs. Dollar Variance Spot the Trends The Main Thing Reversals are Unusual Decisions will bend

27 Sustainability Trends to Ask About Enrollment Demographics Income Levels, Population Age Benchmarks How Do We Compare? External and Internal Past Response Projected Response

28 Some Questions to Consider A. Is our budget balanced? i. What is our current year, three year and five year trend? ii. Are we spending more than we are taking in? a. If so, by how much, and when? iii. What is the timeline for affecting the projected outcome? iv. What can we do to affect the outcome? v. Are our current and interim choices in line with this information? B. Is spending in line with need? i. Enrollment ii. Staffing iii. Per pupil expenditures a. Level of Service

29 Thank You!