elida local schools financial summit ii n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Elida Local Schools Financial Summit II PowerPoint Presentation
Download Presentation
Elida Local Schools Financial Summit II

Loading in 2 Seconds...

play fullscreen
1 / 54

Elida Local Schools Financial Summit II - PowerPoint PPT Presentation


  • 120 Views
  • Uploaded on

Elida Local Schools Financial Summit II. Report to Stakeholders Fiscal Year 2006-2007 Joel L. Parker,CPA. Summit Team. Lynn Metzger, Metzger Financial Services Bruce Opperman, WLIO Phillip Morton, Elida Visionaries Matt Huffman, State Representative Mike Estes, Village of Elida

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Elida Local Schools Financial Summit II' - doctor


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
elida local schools financial summit ii

Elida Local SchoolsFinancial Summit II

Report to Stakeholders

Fiscal Year 2006-2007

Joel L. Parker,CPA

summit team
Summit Team
  • Lynn Metzger, Metzger Financial Services
  • Bruce Opperman, WLIO
  • Phillip Morton, Elida Visionaries
  • Matt Huffman, State Representative
  • Mike Estes, Village of Elida
  • Dennis Swick, Mayor of Elida
  • Paul Basinger, Township Trustee
  • Pat Schymanski, Elida Visionaries
  • Peter Kesler, Ohio Foam Corporation
  • Cliff Barber, General Dynamics
  • David Anderson, The State Bank
  • Max Stover, First Federal Bank
  • Steve Boroff, Superior Federal Credit Union
  • Steve Romey, Attorney
  • Beth Jokinen, The Lima News
  • Mike Ford, Delphos Herald
  • Sally Ulrich, Elida Board Member
  • Brenda Stocker, Elida Board Vice President
  • Don Diglia, Elida Superintendent
  • Joel Parker, Elida Treasurer
  • Faith Cummings, Elida NCLB Director
  • Jo Ellen Miller, Elida Information Director
goals
Goals
  • Review data on high school bond issue
  • 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
there is no business like public school business
THERE IS NO BUSINESS LIKE PUBLIC SCHOOL BUSINESS
  • Ohio Revised Code
  • No Child Left Behind
  • Unfunded mandates
  • DeRolph case
  • Collective Bargaining
  • Tax structure
  • State Budget
  • Levies/Bond Issues
  • Phantom Revenue
  • Voters
  • Raw product - 100% accepted
  • Emotional Issues
types of levies
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
types of levies1
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
elida building project
ELIDA BUILDING PROJECT
  • Elida High School $39,750,000
  • 6.46 Bond Issue and 1 mill PI Levy

(38,250,000 Bonds + 1,500,000 Interest)

osfc ranking
OSFC Ranking
  • Year Rank State Share
  • 2006 386 36%
  • 2007 393 35%
  • 2008 399 34%
why now
WHY NOW?
  • Close one 90+ year old building
  • Take advantage of current construction costs
  • Improve air quality and handicap accessibility
  • Expand community partnerships
  • Protect local and community real estate values
  • Better investment of tax-payer money
  • Great interest rate 4.25%-4.50%
  • Hungry contractors(good time to bid)
  • Excellent strategic planning
  • The need goes back to 1969---The Right Plan The Right Time!
benefits to community
Benefits to Community
  • Protect property values
  • Provide “Center Piece” for the community
  • Attract new families
  • Retain old families
  • Provide safe, healthy learning environment
  • Loss to open enrollment $834,000
  • Loss to community schools $506,000
get the message out answer every question
Get The Message Out! Answer Every Question!
  • Newsletters
  • Web Site
  • Door to Door
  • Town meeting
  • Mailings to voters
  • TV and radio shows
  • Signs
  • TV ads
  • Newspaper ads
  • Notes from teachers
inflation defined
Inflation Defined
  • 1969 New High School $2,150,000
  • 2006 New High School $37,000,000
  • 2007 New High School $39,750,000
  • 1997 - $92 per square foot
  • 2007 - $211 per square foot
  • (Review Trend Data)
interest savings on 40 million new high school
Interest Savingson $40 Million New High School
  • 7.0% - 28 years $51,000,000
  • 4.5% - 28 years $30,422,000
  • A Great Time to Borrow!
legislative concerns history
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
how many clients
HOW MANY CLIENTS?
  • Students
  • Tax payers
  • Boosters
  • Parents
  • Business partners
  • Local officials
who are we
WHO ARE WE?
  • Maintenance – 2
  • Custodial – 13.5
  • Food Service – 25
  • Bus Drivers – 31
  • Asst Tech Co-1
  • Total 268.5
  • 4 Buildings
  • 81 square miles
  • Students – 2,458
  • Teachers- 145
  • Nurse –1
  • Guidance – 4
  • Professionals – 16
  • Secretaries – 16
  • Aides – 14
average teacher experience
Average Teacher Experience
  • EHS – 19.1 years
  • EMS – 17.0 years
  • EES – 16.9 years
  • EEK – 7.6 years
performance indicators
PERFORMANCE INDICATORS
  • Carry-over Margin 1-5%
  • Strength of Carry-over - 60 day
  • 80% Rule on Salaries and Benefits
  • Debt to Total Assets
  • Residential Tax Rate
  • Per Pupil Spending (vs. other schools)
  • ADM Per Pupil Spending
audit list
AUDIT LIST
  • Annual Financial Audit by Auditor of State
  • ADM Audit by ODE(every 5 years)
  • Staffing Audit by ODE(5 years ago)
  • Curriculum Review by ODE
  • Annual Facility Inspection (Jared’s Law)
slide21

68 Day Cash Balance!

60 DAY CASH BALANCE ALMOST A REALITY

june 30 carry over gaining strength
June 30 Carry-Over *Gaining Strength*
  • 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
what changed
WHAT CHANGED?
  • 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
  • Savings on Retire/Rehire
  • Sharing on health premiums
audit report
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
the lima news april 1 2007
The Lima News-April 1, 2007
  • Top 25
  • Lima Total $928,919(7 of top 25)
  • Shawnee Total $915,855(5 of top 25)
  • Bath Total $836,848 (5 of top 25)
  • Apollo Total $829,174 (1 of top 25)
  • Elida Total $760,064 (1 at 16th)
  • Delphos Total $753,602 (3 of top 25)
the lima news april 1 2007 superintendent salary data
The Lima News April 1, 2007-Superintendent Salary Data
  • Lima $115,269
  • Crestview $108,159
  • Allen East $102,019
  • Delphos $101,457
  • Auglaize ESC $96,600
  • New Bremen $93,767
  • Lincolnview $93,711
  • Putnam ESC $93,565
  • Waynesfield $92,426
  • Elida $91,628
how does our 2007 residential tax rate stack up
How does our 2007 residential tax rate stack up?
  • Residential Tax Rate 2007
  • 31.44 Lima City
  • 31.26 Allen East
  • 31.15 Bath
  • 29.76 Shawnee
  • 29.23 Bluffton
  • 27.86 Perry
  • 27.09 Spencerville (Plus 1% income tax)
  • 27.14 ELIDA
  • 26.80 Delphos
slide34

Administrative Expenditures

Expenditures Per Pupil

Percentage of Total Expenditures

Lima City School

$1,228

13.1%

State Expenditures

$1,143

12.2%

Spencerville

$1,025

13.3%

Delphos City

$1,005

12.7%

Allen East

$961

12.9%

Perry

$933

13.4%

Bath

$882

11.7%

Bluffton

$856

11.1%

Shawnee

$831

11.5%

Elida

$811

11.3%

ADMINISTRATIVE EXPENSES

Administration: Salaries for administrators, office staff, and office supplies

slide35

Building Operations Expenditures

Expenditures Per Pupil

Percentage of Total Expenditures

Bluffton

$1,804

23.3%

State Expenditures

$1,779

19.0%

Shawnee

$1,749

24.2%

Bath

$1,716

22.7%

Lima City

$1,673

17.9%

Perry

$1,664

23.9%

Allen East

$1,567

21.0%

Spencerville

$1,529

19.8%

Elida

$1,412

19.7%

Delphos

$1,326

16.8%

BUILDING EXPENSES

Building Operations:Utilities, maintenance, repairs, busses and lunchroom expenses

staff support expenses

Staff Support Expenditures

Expenditures Per Pupil

Percentage of Total Expenditures

Lima City

$389

4.2%

State Expenditures

$293

3.1%

Bluffton

$155

2.0%

Elida

$90

1.3%

Spencerville

$51

0.7%

Bath

$35

0.5%

Allen East

$34

0.4%

Perry Local

$25

0.4%

Shawnee

$24

0.3%

Delphos

$12

0.1%

Staff Support Expenses

Staff Support: Teacher training and other professional development activities

pupil support expenses

Pupil Support Expenditures

Expenditures Per Pupil

Percentage of Total Expenditures

State Expenditures

$935

10.0%

Lima City

$931

9.9%

Delphos

$907

11.5%

Bath

$851

11.3%

Spencerville

$806

10.5%

Shawnee

$727

10.1%

Allen East

$688

9.2%

Bluffton

$672

8.7%

Elida

$669

9.4%

Perry

$623

9.0%

Pupil Support Expenses

Pupil Support: Salaries for librarians, counselors, and nurses

instructional support

Instructional Expenditures

Expenditures Per Pupil

Percentage of Total Expenditures

State Expenditures

$5,205

55.6%

Lima City

$5,148

54.9%

Delphos

$4,664

58.9%

Spencerville

$4,299

55.8%

Bluffton

$4,244

54.9%

Allen East

$4,220

56.5%

Elida

$4,169

58.3%

Bath

$4,070

53.9%

Shawnee

$3,891

53.9%

Perry

$3,704

53.3%

Instructional Support

Instruction: Teacher and education professional salaries and classroom materials

state funding flaws
STATE FUNDING FLAWS
  • Over-reliant on property taxes
  • No inflationary growth on property taxes
  • Phantom Revenue
  • Unfunded mandates
  • System too complicated
  • Many man hours on levies(2000,2003,2004,2005,2006,2007,2008)
  • Schools get viewed as “Big Government Waste”
  • One of the few ways voters can express frustration with taxes
phantom revenue
PHANTOM REVENUE
  • Who is it??
  • State assumes we receive 23 mills from local tax payers
  • Elida actually receives 20 mills
  • This 3 mill gap is a huge problem
  • The State deducts 3 more mills than we actually receive
  • See SF3 handout (making sausage)
state aid short version
State Aid-Short Version
  • $5,403 x 1.00687x2,442.15=13,285,586
  • Less 8,226,036(.023 x357,653,735)

_______________

  • $5,059,550
23 mill charge off
23 Mill Charge- Off
  • FY 2005 $7,383,852
  • FY 2006 $7,870,054
  • FY 2007 $8,226,035
state aid
State Aid

FY 2006 $7,520,508

FY 2007 $7,520,508

FY 2008 $7,458,619

FY 2009 $7,458,619

state budget breakdown
STATE BUDGET BREAKDOWN
  • Primary & Secondary Education 35%
  • Medicaid 20%
  • Colleges 13%
state budget concerns fy 2010
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
constitutional amendment
CONSTITUTIONAL AMENDMENT
  • High-quality education is a fundamental right for every Ohio child
  • Determine levels of funding based on student need
  • Eliminate “Phantom Revenue”
  • Exempt Ohio seniors and disabled from property taxes on the first $40,000 of the market value of their homes
  • Create an independent commission appointed by Ohio’s top elected leaders(to monitor efficiency)
  • Direct the commission to report annually to the governor
  • Create and maintain a permanent local government fund to support local government services
  • Establish a system to fund colleges at no less than 2007 amounts and increases annually based on state’s personal income percentage
5 year goals
5 Year Goals
  • Pass a building bond issue
  • Continue to monitor health insurance (Health Savings Accounts, Spousal language, Mandate Generic Drugs)…impact of state pool
  • Enhance customer service
  • Maintain 0-5% profit margin
  • Continue to review staffing needs
  • Monitor new legislation
  • Others ???? (group discussion)
cliff s barber

Cliff S. Barber

“From a cost savings standpoint the bond issue is a "no-brainer". The annual maintenance cost for the old high school alone is over $100,000per year and that does not include the $122,000 per year in heating costs. Also, the addition to the middle school will save $4.4 million in operating and personnel expenses over the life of the bond by allowing the district to operate three buildings instead of four thus allowing the middle school addition to pay for itself. “

david a anderson president lima region the state bank and trust company

“I haven’t talked to anyone that won’t agree Elida NEEDS a new high school. I don’t think anyone could reasonably argue otherwise. Both the high school and Gomer buildings are tired and costly. For example, over the past 10 years alone our school district has spent $4.80/sf, $4.39/sf and $2.87/sf on repairs at the Gomer building, high school and middle school, respectively. By comparison that translates into $300,000 of excess costs being absorbed to keep the older buildings operational. If a major problem presents itself at the high school or Gomer, which is highly probable, we’ll be forced to put more “band-aids on craters.” We need to take action now. Waiting would cost everyone much, much more…and we’re not just talking about money!”

David A. Anderson

President - Lima Region

The State Bank and Trust Company

david a anderson president lima region the state bank and trust company1

“It is clearly documented that new school facilities improve attitudes and enhance the education process. If we do not update our facilities we not only leave money on the table (35% from the State of Ohio), we all but assure ourselves that future graduating classes will continually fall behind their peers that have access to better technology and equipment that come with new buildings.”

David A. Anderson

President - Lima Region

The State Bank and Trust Company

david a anderson president lima region the state bank and trust company2

“From an economic development perspective, we need to be aware that new business prospects care about the quality of schools when determining where to locate. They understand that modern, well-maintained facilities provide students with access to advanced technology and equipment that will be important to the future quality of their workforce. Likewise, prospective new residents also make choices based on the quality of schools. Anyone who has ever moved from one community to another knows that part of the process involves evaluating which school district to move within. I know my family did when we chose Elida in 1994. With all the new school facilities now surrounding the Elida School District, what’s the chance of new residents making that same choice today? Exactly! We need to take action now.”

David A. Anderson

President - Lima Region

The State Bank and Trust Company