1. Financial Presentation March 2017
Aurora City Schools
Financial Presentation March 2017

2. $34.4 Million Operating Expenditures

3. Two Expenditure Categories Account for 93% of the District’s Expenditures
Salaries and Benefits %
Purchased Services 7%

5. Increases in Base Pay-Aurora Staff
School Year
Increase on Base 0%
.75%
1.0%
1.25%

6. $34 Million Operating Revenue

7. Three Revenue Sources Account for 94% of the District’s Revenue
1. General Property Tax 68%
2. State Student Aid 17%
• $6,000 per Student Core Funding FY17
• Aurora has a 20.2% State Share
• Aurora receives $1,212 per Student
3. Property Tax Allocation %
• Real Property Tax Rollbacks on Levies before August 2013
• Included TPP Reimbursement prior to FY17

9. There are Two Types of Millage
Inside Millage – Unvoted – Aurora has 5.6 mills of Unvoted Millage – Revenue grows with increases in valuation
Voted Millage – HB 920 (1976) Limits revenue to the amount generated when the levy was initially approved

10. Example
50 New Homes x $300,000 Average Cost = $15,000,000
$15,000,000 x .35 (assessed value) = $5,250,000 increase in valuation
$5,250,000 x = $29,400 additional tax revenue

11. Levy Cycles
For districts like Aurora, with a high reliance on local property taxes to fund operations, there is little opportunity for annual revenue growth without voters passing additional levies.
As expenditures grow faster than revenues, maintaining cash balances becomes unsustainable without adding new revenue from additional levies.
This is called a levy cycle.

13. Expenditure and Revenue Growth

14. Revenue and Expenditure Growth with New Levy

16. Issue #4: Levy Issue-May 2017
5.9 mill operating levy (Continuing)
$207 per $100,000 of valuation; Will generate $3.7 Million
Mill – A unit of taxing measure equaling $1 for every $1,000 of assessed valuation (35% of value).
Last new operating levy money was November 2012
Aurora has an strong record of levy passage. Last failure in 2007– guard against the “It’ll pass, it always passes” mentality.
November Yes- 1,897 No- 1,998
March Yes- 3,348 No- 2,950
November Yes- 4,568 No- 4,346

17. A Proud Tradition of Academic Excellence
Our district is a leader in academic excellence and financial efficiency!
Designated “America’s Most Challenging High Schools” – Washington Post, “America’s Top High Schools”- Newsweek Magazine, & “Gold Medal School” - U.S. News & World Report.
ASCD performance index score ranks our district in the “top 1-2%” of all public school districts in Ohio while our costs are in the 21st percentile.

18. A Proud Tradition of Financial Efficiency
Ohio Auditor of State Award- Six consecutive years!
Energy Star Certificate- U.S. Environmental Protection Agency
Over $500,000 in energy savings in past five years.

19. Have We Tightened Our Belt?
Implemented Pay to Participate Fees.
Eliminated 7th & 8th grade boys and girls soccer, softball and baseball teams.
Eliminated Technology Integration Position
Eliminated Secretary Position
Eliminated $90,000/Yr. Maintenance Contract

20. Aurora’s Outstanding Results Are An Economic Value
DISTRICT
District Pupil/Administrator Ratio
District Expenditure Per Pupil
AURORA
211/1
11,319
Revere
204/1
13,110
Hudson
182/1
12,966
Chagrin Falls
176/1
13,412
Brecksville/Broadview Hts.
174/1
11,936
Solon
168/1
13,866
Kenston
158/1
12,304
Westlake
157/1
13,271
Bay Village
154/1
12,242
Kent
133/1
14,034
Beachwood
125/1
21,165
West Geauga
91/1
12,711
Rocky River
79/1
12,520
The larger the #, the better the ratio. We have an admin for every 211 students, where Solon has one for every 168
Solon’s $2,547 per student is actually over 7.5 million dollars per year in additional expenditures

21. Economic Value!! District Expenditure per Child
Difference in Total $’s/Year
AURORA
$11, 319
Solon
$13, 866
$7.4 Million
Hudson
$12,966
$4.8 Million
Beachwood
$21,165
$28.5 Million
Kenston
$12,304
$2.8 Million
Chagrin Falls
$13,412
$6.0 Million
West Geauga
$12,711
$4.0 Million
Took the difference between the amount spent and multiplied it by 2,900 students

22. What Has Changed? Less State Support 2011- 27.8% 2016- 25.1%%
State Average %
This is a revenue issue, not a spending problem.
Loss of state revenue due to the rollback and then elimination of TPP

23. Tax Bill- Comparable Districts
District Name
2017 Tax Bill Per 100,000
North Olmsted (North Olmsted schools)
$3,088
Bay Village (Bay schools)
$2,982
Chagrin Falls (Chagrin Falls schools)
$2,642
Rocky River (Rocky River schools)
$2,550
Mayfield (Mayfield schools)
$2,541
Bainbridge Twp. (Kenston schools)
$2,441
Orange (Orange schools)
$2,346
Strongsville (Strongsville schools)
$2,303
Solon (Solon schools)
$2,295
North Royalton (North Royalton schools)
$2,253
Brecksville (Brecksville-Broadview Hts. schools)
$2,237
Copley Twp. (Copley/Fairlawn schools)
$2,230
Twinsburg Twp. (Twinsburg schools)
$2,187
Hudson (Hudson schools)
$2,170
Stow (Stow-Munroe Falls schools)
$2,158
Beachwood (Beachwood schools)
$2,095
Aurora (Aurora schools)
$1,873

24. Where do my Property Taxes Go?

25. Most Common Questions 1. Will we ever see taxes decrease?
Yes- As more houses are built, each homeowner sees a small reduction. Also, just this past December 1.52 mills came off the tax roles.
2. Didn’t we just pass a levy?
Yes- we have 3 (5-Year) levies- 2 operating and 1 permanent improvement that are renewed every 5 years.
3. We have $7 Million; why do we need 5.9 mills?
Due to inflationary measures we are currently in deficit spending. Levies do not generate more revenue over the years. Thus, revenue stays flat and expenses continue to increase. Current rollover ranks us in bottom ¼ of all districts.

26. Cuts Due to Levy Failure
Eliminate 1 School Resource Officer (SRO)
Increase Athletic Pay to Participate Fees
Eliminate Board AP Test Contribution
Personnel- Eliminate 5 Employees
Supplementals- Elimination of several supplemental positions
Eliminate Field Trips
Reduction in Professional Development Budget

27. Communications Strategy
This levy is necessary due to the state cuts in funding. This revenue is essential to maintain our current academic programs.
Levies are a fact of life for Ohio school districts. The current public school funding structure in Ohio means that virtually every school district throughout the state must return to voters for financial support on average every three to five years.
We will be transparent with all the facts and figures as they are presented in all of our materials.
These dollars are necessary for use to maintain our district performance and meet all of the accountability measures.

28. Key Campaign Messages
This is a revenue issue, not a spending problem. The majority of the revenue generated by the levy will be used to prevent a deficit and will prevent reductions in academic programing.
Protect the value of your home.
Financial need for the levy. We are now in a place where we need to replace those state dollars.
Superior student achievement.
Consequences of a levy failure.
Continued fiscal responsibility.
We are not adding staff, programs, etc..
If the levy fails there will be cuts- still being finalized with the board- the personnel will be informed in March

29. Let’s Maintain Our Excellence
May 2nd, 2017
5.9 mill operating levy