1. BOE Work Session
May 3, 2017

2. CF Vision 2020

3. 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.

4. 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

5. 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 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

6. Forecasting and Budget Planning Subject to Change!

7. 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)

8. 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

9. 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*

10. Why do we need a to achieve a $2M carryover
Why do we need a to achieve a $2M carryover? October 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)

11. 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.

12. Excess Cost and Catastrophic Cost Reimbursements
(* approximated amounts)
Excess Cost and Catastrophic Cost Reimbursements
Excess Cost Reimbursement:
$259, 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, ($96, more than FY16)

13. Excess Cost and Catastrophic Cost Reimbursements
(* approximated amounts)
Excess Cost and Catastrophic Cost Reimbursements
Catastrophic Cost Reimbursement:
FY16
$1,279, submitted to ODE
$122, received
FY17
$1,913, submitted to ODE
$194,165.92* anticipated receipts

14. 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* *

15. 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, 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, in salary and benefits.
Thus, we have increased classroom capacity while reducing central office capacity.

16. 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.

17. (* approximated amounts)
2017 Decisions
College and Career Readiness – $387, Instructional Technology - $83, Human Resources - $125, Operations - $97, Total Reductions = $694, Some of these savings will impact the FY17 budget Most of the savings will impact FY18 and beyond

18. 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.

19. 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

20. 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

21. 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

22. (* 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

23. Textbook Adoptions Subject Area Elementary Middle High Mathematics
2016
ELA
2011
2007
Science
2000
Social Studies
2003
Music
Art
1992
Health
1999
Business
Careers
Foreign Languages
Industrial Technologies

24. 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