MOHAWK LOCAL SCHOOL DISTRICT Five-Year Financial Forecast Fiscal

What has Changed?

Forecast Summary

Revenue vs Expenditures Graph

Cash Balances Graph

SIGNIFICANT REVENUE ASSUMPTIONS

Property Tax and State Funding Trend

Real Estate Tax Class I – Residential/Agricultural Class 2 – Industrial/Commercial Public Utility Personal Property House Bill 920 Effect

Residential 35% of Market Value (determined every 6 years with an update in- between. 1 Mill =.001 Example: $200,000 home X 35% = $70,000 Taxable Value X 20 mills = $1,400 tax (less 12.5% rollback/homestead) = $1,

Agricultural CAUV – Current Agricultural Use Value Complicated formula comprised of Yield Information, Cropping Pattern, Crop Prices, Non-Land Production Costs and Capitalization Rate. Details can be found at _property/Explanation2015.pdf

House Bill 920 Effect Passed in As property values increase, the millage rate will decrease so that the same amount of tax is collected. This will occur until a floor is reached at 20 mills. Example 25 mills on $20,000,000 Taxable Class 1 Value = $500,000 tax revenue. If reappraisal is at $22,000,000, millage will adjust to 22.7 mills and the tax will remain $500,000.

Mohawk Millage Class 1 – 20 Mill Floor Class 2 – Mills Public Utility Tangible – Does not have a HB 920 effect

State Funding Core Aid – 52% ($250,889 decrease) Targeted Funding (Includes Agricultural Target) – 23% ($715,250 increase) Special Education 6% ($61,126 decrease) K-3 Literacy – 1% ($3,102 increase) Gifted – 1% ($887 increase) Transportation Aid – 6% ($21,142 decrease) Preschool - <1% - ($0 difference)

Supplemental Transportation (New) – 2% ($96,598 increase) Capacity Aid (New) – 7% ($367,122) Graduation Bonus (New) - <1% ($11,859 increase) Third Grade Proficiency Bonus (New) - <1% ($11,781 increase) Guarantees and Caps

Resources Trend

SIGNIFICANT EXPENDITURE ASSUMPTIONS

Expenditure Trend

Cash Flow

Plan for Long Term Fiscal Stability To meet long term capital needs, beginning in FY15 we began allocating 20% of income tax into a new Permanent Improvement Fund. This fund is paying for the HVAC improvements and other future capital projects. In FY16 and FY17 we will transfer an additional $500,000 each year into this fund. Beginning in FY14, we put $200,000 into a “rainy day” fund. It is the intent that we will allocate another $200,000 into this fund in FY16 and for the following 2 years. This fund is to be used in the future to avoid program cuts during those years when there is a major economic downturn.

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Contact: Treasurer, Roy B. Swartz, CPA (419)