Five Year Financial Forecast October Cleveland Municipal School District

Five Year Forecast - Contents 2 Major Assumptions General Fund Revenues General Fund Expenditures Five Year Forecast Summary

Cleveland Municipal School District 3 Major Assumptions

4 Revenue: Property Tax Collection Rate - The forecast assumes the collection rate will remain at same level as 2013 (2014 has not yet been released). A 1% change in the collection rate represents $2.5 million. Assessed valuation will increase 2.6% to $5.1 billion in All property values will be updated for the 2016 collection year. No change is anticipated. On 11/6/12 residents passed a 4 year 15 mill levy with collection beginning January The forecast assumes the levy will expire December 31, State Funding–Cleveland is on the guarantee for FY14 and FY15. Assumes slight decrease in FY16-FY19 based on enrollment decline. Assumes the district will be on the guarantee for FY16-FY19. Assumes no change in State reimbursement of Tangible Personal Property Taxes.

Major Assumptions continued 5 Expenditures : Staffing assumptions: Healthcare rates are forecasted to increase an average of 10% in FY15 - FY19. Forecast assumes all union agreements as currently defined. Forecast assumes $3.6 million of strategic investments per year. – Improve IT Infrastructure – Improve IT support – Community Wrap Around Forecast assumes additional dollars for investment schools. $7.0 million FY15, $10.5 million FY16-FY19. Forecast assumes $16 million of continued aggressive fiscal management to gain efficiencies per year in FY Forecast assumes an average 4% annual increase in charter enrollment in FY Forecast assumes a reduction of 20% each year for e-rate discount. FY15FY16FY17FY18FY19 G F5,1165,0375,0175,0034,990

Cleveland Municipal School District 6 General Fund Revenues

Cleveland Municipal School District FY

Cleveland Municipal School District Local Taxes – Property Tax Revenue 8

Cleveland Municipal School District Property Taxes – Current Collection Rate 9 Current Collection Rate Calendar Year

Cleveland Municipal School District Property Taxes – Total Collection Rate 10 Current Collection Rate Calendar Year 89.3%

Cleveland Municipal School District State Foundation Revenue 11 Revenue (In Millions) Fiscal Year

Cleveland Municipal School District State Foundation Revenue – Excluding Charter School Portion 12 Revenue (In Millions) Fiscal Year

Cleveland Municipal School District Education Jobs 13

Cleveland Municipal School District Property Tax Allocation – State Hold Harmless Reimbursements 14

Cleveland Municipal School District Other Revenue 15 Revenue (In Millions)

General Fund Revenue 16 *Projected – Excluding Advances

Cleveland Municipal School District 17 General Fund Expenditures

Cleveland Municipal School District Where the Money Goes 18

Cleveland Municipal School District Salaries 19

Cleveland Municipal School District Fringe Benefits 20

Cleveland Municipal School District Purchased Services 21 Expenditures (In Millions)

Cleveland Municipal School District Supplies, Textbooks, Equipment, and Other Expenditures 22

General Fund Expenditures 23 *Projected – Excluding Advances

Cleveland Municipal School District 24 Five-Year Forecast Summary

Cleveland Municipal School District October 2014 Five-Year Forecast (in millions of dollars) 25

Questions 26 Cleveland Municipal School District