Lancaster City Schools

Transcription

1 Lancaster City Schools Popular Annual Financial Report Medill Kick Off Celebration October 8, 2015 for the year ending June 30, 2015 Lancaster City Schools Lancaster, Ohio

2 LANCASTER CITY SCHOOL DISTRICT ADMINISTRATIVE OFFICES 345 E. MULBERRY STREET LANCASTER, OHIO TELEPHONE (740) FACSIMILE (740) December 16, 2015 TO THE CITIZENS OF THE LANCASTER CITY SCHOOLS, We are pleased to present the Lancaster City School District s Popular Annual Financial Report (PAFR) for the year ending June 30, This report makes our District s finances easier to understand, and communicates our financial situation in an open and accountable manner. The PAFR summarizes the financial activities and operating results reported in the Lancaster City School District s audited Comprehensive Annual Financial Report (CAFR). The PAFR is unaudited and presented on a non-gaap (Generally Accepted Accounting Principle) basis, which primarily deals with full disclosure and segregated funds. The statements presented on page 3 and the pie charts on page 4 consist of the General Fund of the District. General Fund is the largest fund from which most day-to-day programs and services are provided. For more detailed financial information, including a discussion of key changes in financial data from last fiscal year, our economic condition and outlook, initiatives and accomplishments, please refer to a copy of the Comprehensive Annual Financial Report, which is available at The Lancaster City School District is proud of this report and the support offered by the Board of Education in its creation. Ultimately, we would like to thank our citizens for their encouragement in creating a report designed to more adequately address their needs as taxpayers, as well as for the opportunity to serve them. Questions, comments and feedback regarding this report are encouraged, so please do not hesitate to contact the Treasurer's office at (740) or at j_taylor@lancaster.k12.oh.us. Respectfully submitted, AWARD FOR OUTSTANDING ACHIEVEMENT POPULAR ANNUAL FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Lancaster City Schools for its Popular Annual Financial Report for the fiscal year ended June 30, The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national awardrecognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of c r e a t i v i t y, p r e s e n t a t i o n, understandability and reader appeal. Julie L. Taylor Treasurer LANCASTER CITY SCHOOLS: ADMINISTRATIVE STRUCTURE AS OF JUNE 30, 2015 Superintendent Board of Education Treasurer Director of Human Resources Director of Instructional Services Director of Business Director of Educational Information & Tech Services Director of Student Services Page 2 Lancaster City School District

3 SUMMARIZED FINANCIAL REPORTS Readers of the Financial Activity Statement and Financial Position Statement should keep in mind that the numbers in both reports are taken from the District s Comprehensive Annual Financial Report (CAFR), but are presented in a non-gaap format. The Comprehensive Annual Financial Report can be obtained from the Treasurer s office or REVENUES AND RESOURCES OVER EXPENDITURES AND SERVICES The Financial Activity Statement, known in accounting terms as the income statement, provides a summary of the resources (revenues) and services (expenditures) of the District. Resources Taken In (shown in thousands) FY'15 FY'14 FY'13 FY'12 Taxes 32,474 33,478 30,925 29,037 State and Federal Revenue 29,745 26,838 24,983 25,062 Investment Income Tuition & Fees 1,227 1,306 1,135 1,045 Extracurricular Miscellaneous TOTAL Revenues & Resources^ 64,340 62,399 57,717 55,803 Services Provided* (shown in thousands) FY'15 FY'14 FY'13 FY'12 Instruction 36,502 36,986 34,954 32,955 Pupil Support 3,463 3,275 3,086 3,220 Instructional Support 1,962 1,849 3,025 2,849 Board/Administration/Fiscal 5,474 5,445 5,662 5,278 Business Support Plant Operation 4,735 4,778 4,856 4,680 Transportation 2,124 1,750 1,700 1,675 Central Support 1,012 1, Extracurricular Capital Outlay Debt Service/Other Non-Instructional TOTAL Expenditures & Service^ 57,181 57,432 56,207 53,239 Revenues & Resources Over Expenditures & Services 7,159 4,967 1,510 2,564 * Please refer to the definitions to the right of this chart. ^ Total revenue increased in FY15 due to increases in intergovernmental revenue. Total expenditures increased in FY13 and FY14 due to increased expedenditures in regular and special instruction. CAPITAL LEASES The chart below captures the District s long-term debt obligations: Capital Leases FY 15 FY'14 FY'13 FY'12 Capital Leases/Total Outstanding 459, ,908 1,254, ,240 During Fiscal Year 2013, the District entered into a four year lease obligation for equipment and accessories necessary for implementation of the 1:1 ipad initiative at Lancaster High School. During Fiscal Year 2015, the District entered into a five year lease for new copier equipment. OUR EXPENDITURES AND SERVICES: DEFINITIONS INSTRUCTION is the largest expenditure category and relates to the direct instruction of our students. Students are directly impacted by expenditures from this category. PUPIL SUPPORT areas comprise all guidance services, lunchroom aides, speech, hearing, occupational therapy, physical therapy, and psychological services. INSTRUCTIONAL SUPPORT costs include library services, technology integration, curriculum development, instrumental staff training, and audio-visual services. BOARD/ADMINISTRATION/FISCAL costs represent those of the administration and Board of Education s operation of the District. Also included in this category are school building secretarial support, financial services, such as payroll, accounts payable and receivable, auditing, budgeting and reporting, and fringe benefits administration. BUSINESS SUPPORT costs include business services such as risk management, construction, management, and courier services. PLANT OPERATION expenditures relate to the safe and efficient environment of the school including building maintenance, grounds and custodial services. TRANSPORTATION expenditures relate to providing transportation (mostly by bus) to all students who live in the Lancaster City School District consistent with Board of Education policies and the laws of the State of Ohio. On average the bus fleet transports approximately 1,998 students to Lancaster City Schools and 18 students to non-public schools. CENTRAL SUPPORT expenditures include techonology, maintenance staff, and computer network maintenance contracts. EXTRACURRICULAR expenditures account for salaries, benefits, and supplies for club and athletic related activities. Popular Annual Financial Report Page 3

4 OUR REVENUES AND RESOURCES FY15: WHERE THE GENERAL FUND MONEY COMES FROM INVESTMENT INCOME 0.5% TUITION AND FEES 1.9% MISCELLANEOUS 0.6% EXTRACURRICULAR 0.3% STATE AND FEDERAL REVENUE 46.2% TAXES 50.5% TOTAL REVENUES: 64,340 (SHOWN IN THOUSANDS) OUR EXPENDITURES AND SERVICES FY15: WHERE THE MONEY GOES BUSINESS SUPPORT 0.5% TRANSPORTATION 3.7% BOARD/ADMINISTRATION/ FISCAL 9.6% PLANT OPERATION 8.3% EXTRACURRICULAR 1.7% CENTRAL 1.8% CAPITAL OUTLAY 0.4% DEBT SERVICES/ OTHER NON-INSTRUCTIONAL 0.7% INSTRUCTION 63.8% PUPIL SUPPORT 6.1% INSTRUCTIONAL SUPPORT 3.4% TOTAL SERVICES AND EXPENDITURES: 57,181 (SHOWN IN THOUSANDS) BENEFITS OVER DETRIMENTS The Financial Position Statement, known in accounting terms as the balance sheet, reports the benefits (assets) available to provide services. Detriments (liabilities) are the amounts for which the District is obligated to pay in the future. The amount below represents the difference between the benefits of the District and the detriments which it must pay. The amount provides the net worth of the District. Financial Benefits (shown in millions of ) FY'15 FY'14 FY'13 FY'12 Cash and Investments Receivables Other Assets Total Financial Benefits Financial Detriments (shown in millions of ) FY'15 FY'14 FY'13 FY'12 Amount Owed to Employees and Vendors Short Term Debt Other Liabilities Total Financial Detriments Benefits over Detriments Page 4 Lancaster City School District

5 SOURCES OF FUNDING: WHERE DOES THE MONEY COME FROM? PROPERTY TAXES To the right is a graph depicting the amount of tax collections levied by the District from real and personal property taxes. Property taxes provide a majority of the local revenue to operate and maintain our schools. Property taxes increased in FY11 due to a large increase in public utility personal property valuation due to the addition of a natural gas pipeline. Property taxes increased in FY13 and FY14 due to an increase in District real property valuation. Property taxes decreased in FY15 due to a decrease in real estate property valuation. 26,000,000 24,000,000 22,000,000 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000, ,451,956 18,670,963 20,333,007 22,402,732 21,181, STATE FUNDING The chart to the right depicts the revenue for the District's General Fund from the State of Ohio and the revenues deducted from our state payments and sent to charter schools. The state sends part of our state revenue to charter schools to pay for students from our district attending charter schools. Monies received from the state are critical in running a fiscally solvent school district. Years are presented on a June 30 fiscal year-end basis. 32,000,000 31,000,000 30,000,000 29,000,000 28,000,000 27,000,000 26,000,000 25,000,000 24,000,000 1,508,354 1,919,715 1,995,687 1,702,726 1,305,881 23,000,000 22,000,000 21,000,000 20,000, ,462,031 23,142,290 22,987,264 25,135,351 28,438, SCHOOL DISTRICT INCOME TAX 12,000,000 In November 2006, voters approved a one and one half percent earned income tax effective for 10 years. The income tax was renewed on a continuous basis in November The Ohio Department of Taxation administers the monitoring, auditing, and collecting of this tax. Years are presented on a June 30 fiscal yearend basis. Economic condition and outlook can be found in the CAFR s transmittal letter. 10,000,000 8,000,000 6,000,000 4,000,000 2,000, ,992, ,274, ,468, ,919,272 11,159, Page 5 Lancaster City School District

6 ENROLLMENT CURRENT TREND AND MOST LIKELY PROJECTION Enrollment projections help the District as it plans for its long-range facility needs. The District has fluctuated between 6,025 and 6,245 over the last five years. Enrollment is expected to increase slightly over the next five years; however, this is based on projections not predictions. 7,000 6,000 5,000 4,000 3,000 2,000 1, ,028 6,083 6,025 6,218 6, ,281 6, PROJECTED PROJECTED 6,339 6, PROJECTED PROJECTED ASSESSED VALUES OF REAL AND TANGIBLE PERSONAL PROPERTY Collection Residential/ Commercial/ Public Tangible Year Agricultural Industrial Utility Personal Total ,354, ,263,980 48,501, ,119, ,184, ,145,190 48,977, ,307, ,293, ,941,310 48,644, ,878, ,978, ,316,740 44,756, ,052, ,749, ,753,390 44,246,800* 900,750, ,841, ,888,380 24,843, , ,218, ,678, ,949,890 23,299,690 1,316, ,244, ,950, ,287,400 22,601,540 1,761, ,601, ,892, ,415,740 25,379,020 20,369, ,057, ,512, ,642,280 25,354,560 30,990, ,499, ,089, ,661,990 25,676,090 59,005, ,432,981 * The increase in Public Utility in 2011 is due to the Rockies Express Pipeline coming through the District. UNBUNDLING THE TAX RATE Gross Effective Year Length Type Rate** Rate** Approved Approved Inside-Operating* * N/A Permanent Voted-Operating* * Various Permanent Voted-Permanent Improvement* Permanent Voted-Bond Retirement* year TOTAL RATES WHERE DOES A DOLLAR OF YOUR REAL ESTATE TAX MONEY GO? Shown to the right are the 2015 collection year amounts that would be charged to the owner of a 100,000 home in the largest tax district of the district. The graph represents the percentage of each dollar going to each entity. The total of 1, is the annual amount the owner of a 100,000 home would pay in taxes. Library 1% Popular Annual Financial Report Page 6 Historic Parks 1% City 16% School 63% County 19% * Rates are for the 2014 tax year collected in the year **The difference between the gross and effective rate is due to tax reduction factors that generally prevent changes in voted taxes when valuation of existing real property is increased or decreased. Annual Cost County School Library Historic Parks City TOTAL 1,427.47

7 MAJOR INITIATIVES & ACCOMPLISHMENTS FACILITIES: Through the Ohio Facilities Construction Commission (OFCC), formerly the Ohio School Facilities Commission, Lancaster City School District has begun receiving part of the approximately 28 million in state money to construct five new elementary buildings to replace the existing eight elementary buildings. The total project is estimated to be 90 million. Voters approved a 4.1 mill bond issue on March 6, The School Facilities Construction and Improvement Bonds were sold on August 21, Three of the five elementary buildings opened in the fall of Groundbreaking ceremonies have been held for the remaining two elementary buildings which are expected to open in FINANCE: Lancaster City School District has received a Certificate of Achievement for twenty-two years out of the last twenty-three years (the School District did not submit a CAFR for fiscal year 1995). The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of State and local government financial reports. The CAFR is used as a basis for this document. Lancaster City School District has been awarded the Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) from GFOA for the last six years. In addition, the District was awarded the Ohio Auditor of State Award with Distinction for excellence in financial reporting. BUILDINGS/DEPARTMENTS: There were a number of specific initiatives and accomplishments made during the fiscal year ended June 30, Some of those were as follows: LHS students earned over 1,850 semester hours of college credit through dual enrollment/college Credit Plus programs. General Sherman s Power of the Pen team sent seven writers to the State competition and finished 10th in the state of Ohio. Tarhe Elementary earned the 2015 OAESA Hall of Fame School Award. West students were fed on the weekends due to two new projects: Blessings in a Backpack provided families with a backpack of food every weekend and Peanut Butter and Joy sent 80 kids home at the end of the month with bread, peanut butter, and other food items to assist families in making it through to the first of the next month. Food service continued to maintain a positive account balance resulting in State approval to waive the mandated meal price increase. Bus drivers and staff pulled together to make the 1st phase of the redistricting project successful. This involved the rerouting of 2700 students to 3 new elementary schools. *A list of initiative and accomplishments for each building and department can be found in the CAFR transmittal letter starting on page v STATE-ISSUED REPORT CARD (MOST RECENT AVAILABLE: SEE NOTES BELOW) Starting with state report cards for the school year, Ohio began grading schools on an A-F scale. The A-F system replaced Ohio s previous school rating system that gave school labels like Excellent and Continuous Improvement. The A-F system is being phased in over time. For the and school years, each school and district can receive up to nine separate A-F grades, one for each area graded. Schools expected to receive a single, official grade that reflected their overall performance for the school year; however, those report cards will not be available until February For more detailed information, go to the Ohio Department of Education s website at Popular Annual Financial Report Page 7

8 Lancaster City Schools, the Place to Be for Learning, Caring, Succeeding LANCASTER CITY SCHOOL DISTRICT ADMINISTRATIVE OFFICES 345 E. MULBERRY STREET, LANCASTER, OHIO TELEPHONE (740) ~ FACSIMILE (740) Printing of the PAFR provided by Fairfield Medical Center