BOE Work Session May 3, 2017
CF Vision 2020
CF Vision 2020 Focus Area #4 Buildings and Resource Leveraging We are committed to leveraging facilities and resources – we will work with the Ohio School Facilities Commission and others to determine the feasibility of renovation and/or reconstruction of the buildings in our district; we will recommend the most feasible Master Plan to the community for review; and, we will implement strategies to maximize the efficacy of the systems of operations in our district.
CF Vision 2020 Focus Area #4 Buildings and Resource Leveraging Plan and prepare for the passage of three renewal levies Prepare to replace or renovate all school buildings in the district Develop and implement a comprehensive facility maintenance and capital improvement plan
CF Vision 2020 Focus Area #4 Buildings and Resource Leveraging 2016-2017 SMART Goals By the end of 16-17, investigate and develop a model educational environment for 2020 to associate with the strategic plan. Uniting for Our Future During the 16-17 school year, we will support the community in passing the renewal levy. November 2016, 9.97 mill renewal passed with 69% approval May 2017, 4.75 mill renewal passed with 76% approval
Forecasting and Budget Planning Subject to Change!
FY18 – Historical Review of Five-year Forecasts Projected FY18 Expenditures October 2013 October 2014 October 2015 October 2016 Revenue $50,690,328 $51,143,796 $51,895,627 $53,197,694 Salaries (100) $28,139,068 $28,426,726 $28,034,824 $28,006,336 Benefits (200) $12,931,206 $11,756,962 $12,650,085 $12,830,970 Purchased Service (400) $8,397,932 $9,910,349 $10,684,818 $11,554,056 Supplies and Materials (500) $801,864 $1,083,516 $890,860 $1,399,094 Capital Improvement (600) $637,164 $622,637 $263,220 $301,715 Other (800) $851,741 $645,525 $600,208 $601,031 Expenditures $51,878,976 $52,565,714 $53,244,014 $54,302,271 Rev/Exp ($1,188,648) ($1,421,918) ($1,348,387) ($1,104,577) Projected Cash Balance $564,555 $1,568,573 $2,374,282 $1,676,540 We have projected this scenario for the last four years We attempted to add additional revenue in: May 2011 (Replacement –less than anticipated additional revenue) May 2013 (Permanent Improvement) November 2015 (Bond/Permanent Improvement)
Impact of Replacement and PI Levies Summit County Budget Commission Tax Rates Calendar Year Total Valuation 9.97 mill Replacement 3.0 mill Permanent Improvement Calendar Year Impact 2011* $805,330,570 $8,029,145 N/A 2012 (FY12/FY13) $739,981,290 $7,377,614 ($651,531) $651,531 2013 (FY13/FY14) $739,732,130 $7,375,129 ($654,015) $654,015 2014 (FY14/FY15) $741,295,430 $7,390,715 ($638,430) $2,223,886 $2,862,316 2015 (FY15/FY16) $725,362,500 $7,231,885 ($797,260) $2,176,087 $2,973,347 2016 (FY16/FY17) $733,422,760 $7,312,225 ($716,920) $2,200,268 $2,917,188 2017 (FY17/FY18) $727,614,480 $7,253,880 ($775,265) $2,182,843 $2,958,108 Cumulative Impact $4,233,421 $8,783,084 $13,016,505 Changes at the state and local level have a dramatic impact over time…an additional $13 million in revenue! Changes in legislation impacted valuation in 2012 and beyond Passage of the PI Levy in 2013 would have dramatically improved our fiscal position
Impact of Budget Planning Revenue over Expenditures Fiscal Year Forecasted Year-end Revenue/ Expenditures October 2012 Five-year Forecast (6.01) Actual Difference Year-end Cash Balance October 2012 Five-year Forecast (12.01) 2013 ($403,806) $455,133 $858,939 $3,537,663 $4,378,089 $840,426 2014 (1,133,794) $60,314 $1,194,108 $2,403,868 $4,180,553 $1,776,685 2015 ($1,563,257) $114,391 $1,677,648 $840,612 $4,541,308 $3,700,696 2016 ($2,781,831) ($1,047,827) $1,734,004 ($1,941,219) $3,385,765 $5,326,984 2017 ($3,410,556) ($712,364)* $2,698,186* ($5,351,775)* $2,781,117* $8,132,892*
Why do we need a to achieve a $2M carryover Why do we need a to achieve a $2M carryover? October 2016 Five-year Forecast FY17 FY18 FY19 FY20 FY21 Revenue $52,486,060 $53,197,694 $54,043,158 $55,298,397 $56.471,980 Expenditures $53,198,424 $54,302,271 $55,835,596 $57,227,521 $58,860,640 Revenue/Expenditures ($712,364) ($1,104,577) ($1,792,438) ($1,929,124) ($2,388,660) Projected Cash Balance $2,781,117 $1,676,540 ($115,898) ($2,045,022) ($4,433,682) Projected Cash Balance – with ~ $2 million reduction in expenditures beginning FY18 $3,676,540 $3,884,102 $3,954,978 $3,566,318 Cash Carryover Percentage with reduction 5.12% 6.58% 6.79% 6.72% N/A Revenue is projected with passage of calendar year 2017 renewals (9.97, 4.75) and calendar year 2020 renewal (7.9) factored into the equation; they do not include the projection of any new money Without change, we risk ODE Fiscal Watch beginning FY21 Without change, we may not make payroll in February 2018 Without change, we will run out of money by June 2019 The current average cash carryover in Summit County school districts is approximately 31%; good practice is at least 25% (3 months)
Why approximately $2M Reduction? FY17 - October 2016 Five-year Forecast FY18 - October 2016 Five-year Forecast FY18 Budget Plan -Initial Projected FY 18 Revenue $52,486,060 $53,197,694 Salaries (100) $27,466,021 $28,006,336 $26,500,000 Benefits (200) $12,111,534 $12,830,970 $11,500,000 Purchased Service (400) $11,340,049 $11,554,056 $11,000,000 Supplies and Materials (500) $1,258,813 $1,399,094 $900,000 Capital Improvement (600) $152,999 $301,715 $300,000 Other (800) $594,384 $601,031 $600,000 Total Expenditures $53,198,424 $54,302,271 $51,150,000 YTD REV/EXP ($712,364) ($1,104,577) $2,047,694 By targeting an approximate $2M carry-over for FY18 we hope to allow for: certification of bargaining agreements, major unpredicted expense, and fiscal stability by increasing our cash carryover position To achieve the carryover identified above, we need to reduce expenditure by approximately $2M from FY17 projections.
Excess Cost and Catastrophic Cost Reimbursements (* approximated amounts) Excess Cost and Catastrophic Cost Reimbursements Excess Cost Reimbursement: $259,584.68 Excess Cost Reimbursement from Ohio was received in July 2016 (FY17) instead on FY16. Should the payment have arrived by June 30 as it should have: The FY16 deficit spend would have been $788,242 instead of $1,047,827 as it appears on the Five-year Forecast; and, The FY17 deficit spend may have been forecasted as $971,948 instead of $712,364 as it appears on the Five-year Forecast. The good news is, FY17 Excess Cost Reimbursements have already been collected in the amount of $355,595.52 ($96,010.84 more than FY16)
Excess Cost and Catastrophic Cost Reimbursements (* approximated amounts) Excess Cost and Catastrophic Cost Reimbursements Catastrophic Cost Reimbursement: FY16 $1,279,691.19 submitted to ODE $122,049.05 received FY17 $1,913,046.25 submitted to ODE $194,165.92* anticipated receipts
What has been done this year? – CCR and IT (* approximated amounts) What has been done this year? – CCR and IT Actuals Reduced the number of Chromecarts purchased from 20 to 10 $59,077.02 Transition from iReady, COGAT & IOWA to NWEA MAP $87,497.80 Use of NWEA MAP for K-3 Diagnostics and not providing subs for administration of assessments $2,500.00 Out of the Box SPED Placement – pro-rated amount $50,107.56 Nursing Services adjusted based on need $45,329.43 Internally Scanned Graduation and Withdrawal Records $7,000.00* Recycling of Title I supplies $1,000.00* Elimination of consulting for Design Challenges and Authentic Learning $103,480.92 Kindergarten Parent Night packages not purchased (provided instead in partnership with Summit Education Initiative SEI) New Security Contract $4,559.88 Revised printer and copier contract $14,005.56 BoardDocs LT $6,000.00 Postponing the adoption of MS Science Text (which was going to proposed prior to March 2016) $89,917.80 TOTAL $471,475.97* *
What has been done this year? – Human Resources (* approximated amounts) What has been done this year? – Human Resources Changes in central of administration resulted in $203,040.51 of reduced expenditures: Director of Business Operations, Buildings and Grounds Supervisor, Transportation Supervisor, Food Services Supervisor, Special Education Supervisor, Interim Treasurer District wide we experienced changes in 42 positions (additions and subtractions) from FY16 to FY17. Together, the above yielded a total savings of $125,745.87 in salary and benefits. Thus, we have increased classroom capacity while reducing central office capacity.
What has been done? - Operations (* approximated amounts) What has been done? - Operations Buildings and Grounds - $82,238 A reduction of 111 hours of contracted service and service calls estimated at $13,578 in savings so far Eliminated four service agreements estimated at $45,908. We now have the capability of doing the work in-house. Food Service equipment repairs estimated at $15,600. We now have the capability of doing the work in-house. Renegotiated contract with Spirit for uniforms and dust mops with savings of $7,152 Transportation - $14,902 Incorporated two Special Education trips into existing routes.
(* approximated amounts) 2017 Decisions College and Career Readiness – $387,833.51 Instructional Technology - $83,642.46 Human Resources - $125,745.87 Operations - $97,140.00 Total Reductions = $694,361.84 Some of these savings will impact the FY17 budget Most of the savings will impact FY18 and beyond
How do we get to $2M in reductions? Certified Staff Position Estimated Savings Elem – Four (4) certified positions $240,047.86 MS – Twelve (12) certified positions $607,372.28 HS – Eight (8) certified positions $430,426.07 Supplemental Contracts $110,429** Total Certified Reductions $1,388,275.21** Based upon enrollment, scheduling, programming, and current collective bargaining agreement language.
How do we get to $2M in reductions? Classified/Support Position Estimated Savings ESC – Seven (7) support positions $107,463.00 Monitors $109,138.64 Three (3) secretarial positions $116,639.44 One (1) cleaner position $52,488.18 Food Service Hours $72,615.94 Eliminate Summer Casual Labor $21,065.81 Total Classified Reductions $426,922.83
Operational Recommendations Position Savings Technology Fee - $30 per student $90,000.00 Increase Pay-to-Participate - $100 per sport; $75 for Marching Band; $25 per activity with an individual cap of $200 and a family cap of $500 $33,000.00 Expand to state minimum 2 mile radius - Eliminate two (2) bus routes $48,330.00 Total Operational Considerations $171,330.00
Estimated Cost Reductions Savings Certified Reductions $1,388,275.21 Classified Reductions $426,922.83 Operational Recommendations $171,330.00 Total Reductions $1,986,528.04 In an effort to maintain as much current programming, class sizes within reason, and opportunities for students as possible Subject to FY17 financial results, enrollment, variable operational costs, and the state biennium budget
(* approximated amounts) What’s next? By passing the renewal yesterday, we have time to seek additional funds: The next renewal would be required prior to December 31, 2020. Operational Emergency Income Tax Permanent Improvement Combination (Bond/Permanent Improvement) The Board will have to discuss the options and perhaps resurrect the Uniting for Our Future meetings to poll community members. Why do we need additional funds: Textbook adoptions Capital improvements Cost of doing business
Textbook Adoptions Subject Area Elementary Middle High Mathematics 2016 2004-2016 1994-2008 ELA 2011 2007 1997-2000 Science 2000 2001-2007 2002-2014 Social Studies 2003 2003-2008 Music Art 1992 Health 1999 Business 1992-2007 Careers Foreign Languages 2003-2006 Industrial Technologies 1996-2005
Capital Improvement Plan Area FY18 FY19 FY20 FY21 FY22 Roofs – Repair Only $635,880 $667,674 $701,058 $903,976 $948,870 Mechanical, Electrical, Plumbing, HVAC $800,000 $1,200,000 $750,000 $450,000 Windows $844,752 $576,248 $987,516 $900,044 $560,715 Doors $0 $35,100 $72,760 $60,800 $11,100 Buses, Vehicles, Equipment $160,000 $220,000 Parking Lots $93,500 $105,100 $97,100 $86,700 $42,500 Annual Total $2,374,132 $2,344,122 $3,218,434 $2,861,520 $2,233,185 Master Facilities Plan (Phase 1 – 5.98 mills included 0.5 mills of additional PI): $4,351,134 (Based on Calendar Year 2017 Valuation) Cost of $209.30/year per $100,000 of property valuation Capital Improvement Plan: If fully executed will cost an average of $2,606,278/year equates to 3.58 mills Cost of $125.30/year per $100,000 of property valuation