Loading...
HomeMy WebLinkAboutPickerington Local School District - Public Financial ReportPopular Annual Financial Report For the year ended June 30, 2021 Pickerington Schools, Pickerington, OH | Fairfield & Franklin Counties 2 District Leadership Pictured left to right,bottom row: Treasurer Ryan Jenkins, Board of Education Board President Clay Lopez, Board Member Lori Sanders, and Superintendent Chris Briggs.Top row, left to right: Board member Vanessa Niekamp, Board Vide President Keith Kristoff, and Board Member Cathy Olshefski. Pickerington Schools are fortunate to have a supportive community that is a partner in the education of our children. As steward of the community’s investments in its schools, the district is committed to ensuring residents have easy access to and understanding of Pickerington Schools’ finances. This Popular Annual Financial Report (PAFR) is part of our commitment to transparency. It offers an easy-to-understand overview of the district’s general operating activities, as well as key financial trends and data. The PAFR contains highlights of district finances, with key data taken from audited financial statements in the district’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2021. The intention of this report is to summarize the financial activities and operating results reported in the district’s audited Annual Comprehensive Financial Report. The PAFR is unaudited and presented on a non-GAAP (Generally Accepted Accounting Principles) basis. The PAFR does not include full disclosures or segregated funds. Some readers may be interested in exploring the more comprehensive ACFR. That document can be found at www.pickerington.k12.oh.us/finances and at the Ohio Auditor of State’s website, www.auditor.state.oh.us. Questions, comments, and feedback about this report are encouraged. Contact the Treasurer’s Office at (614) 920-6111 or email ryan_jenkins@plsd.us.Respectfully submitted, Timothy “Ryan” Jenkins Treasurer Table of Contents Financial Chart Page Balance Sheet 3 Service Definitions 4 Income Statement 5 Revenues & Resources, Expenditures & Services 6 Property Taxes 7 State Funding 7 Income Taxes 8 Five-Year Forecast 9 Outstanding Debt 10 Tax Rates and Assessed Values 11 3 Liabilities and Deferred Inflows* Amount Owed to Employees and Vendors Deferred Inflows otal Total Liabilities and Deferred Inflows ** Assets Over Liabilities and Deferred Inflows ** Assets Over Liabilities and Deferred Inflows (Balance Sheet) The financial position statement, known in accounting terms as the balance sheet, reports the assets the district has available to provide services along with the liabilities (amounts for which the district is obligated to pay in the future) and deferred inflows (primarily, assets that do not finance the current fiscal year). The district’s net position (net worth) is found by subtracting the district’s liabilities and deferred inflows from its assets. The amounts below are for the district’s General Fund. Assets* Cash and Investments Receivables Other Assets Total Assets ** * Shown in thousands ** Totals may differ due to rounding Source: ACS 5-Year Estimates Educational Attainment Population 25 & Over Less than 9th grade 7599th - 12th grade, no diploma 808 High school grad (includes GED) 7,393 Some college no degree 7,361 Associate's Degree 2,914 Bachelor’s Degree 8,911 Grad/Professional Degree 5,211 Total 33,357 Median Household Income, Per Capita Income, Inflation Adjusted Dollars 2020 2019 Median Household Income Past 12 Mos. $93,840 $90,389 (Inflation Adjusted by Yr.) Per Capita Income (Inflation Adjusted by Yr. $37,520 $36,568 Employee Status Age16 & OverI In Labor Force 28,407 Civilian Labor Force 28,308 Employed 27,501 Unemployed 807 In Armed Forces 99 Not in Labor Force 11,066 Total 39,473 Source: ACS 5-Year Estimates Source: ACS 5-Year Estimates Community Statistics FY21 FY20 FY19 FY18 $35,319 $35,435 $38,231 $36,341 $51,952 $47,497 $46,584 $45,657 $40 $327 $424 $493 $87,311 $83,259 $85,240 $82,489 FY21 FY20 FY19 FY18 $14,596 $13,223 $13,630 $12,922 $39,236 $38,155 $35,069 $28,031 $33,479 $31,881 $36,541 $41,536 $53,832 $51,378 $48,699 $40,953 4 INSTRUCTION: Activities directly dealing with teaching students or interaction between teachers and students. This includes all aides and classroom assistants who assist in the instructional process. Technology used by students is also included here. PUPIL SUPPORT: Activities that assess and improve students’ well-being and that supplement the teaching process. This includes guidance services, health services, psychological services, and support services for students with disabilities. INSTRUCTIONAL STAFF SUPPORT: Activities associated with helping the instructional staff with the content and process of providing learning experiences for students. BOARD/ADMINISTRATION/FISCAL: Activities associated with establishing and administrating policy that operates the school district. This includes budgeting, receiving/disbursing, financial accounting, payroll, inventory control, auditing, and fiscal services rendered by persons in the Treasurer’s Office. PLANT OPERATION: Activities that keep our facilities open, comfortable, and safe for use and that keep the grounds, buildings, and equipment in an effective working condition and state of repair. This includes activities that maintain safety in buildings, on the grounds, and near the schools. TRANSPORTATION: Activities concerned with getting students to and from school, as provided by state law. It also includes transportation to school activities. CENTRAL SUPPORT: Activities, other than general administration, that assist in providing the other instructional and supporting services programs. This includes planning, research, development, evaluation, information, and statistical/ data processing services. EXTRACURRICULAR: District-sponsored activities that give students opportunities to participate in athletics, musical groups, clubs, and other experiences on an individual basis at school events or public events under the guidance or supervision of qualified adults. FACILITIES ACQUISITION AND CONSTRUCTION: Activities concerned with acquiring land and buildings, along with remodeling, constructing, or making additions to buildings. This includes initially installing or extending service systems and other built-up equipment, as well as improving sites. NON-INSTRUCTIONAL SERVICES: Activities concerned with providing non-instructional services to students, staff, and the community. This includes providing certain services to other school districts. CAPITAL OUTLAY: Expenditures to acquire or add to capital assets. This includes expenditures for land or existing buildings; improvement of grounds; construction, addition, or remodeling of buildings; and initial and additional equipment furnishings and vehicles. DEBT SERVICE: Transactions primarily to discharge the district’s commitment for interest and principal on debt. BUSINESS SERVICES: Those activities concerned with purchasing, receiving, transporting, exchanging and maintaining goods and services for the school district. Understanding Services and Expenditures Definitions 5 FY21 FY20 FY19 FY18 Revenues & Resources Over Expenditures & Services The income statement provides a summary of district revenues and resources compared to the expenditures and services provided by the district. The amounts below reflect the General Fund. Revenues & Resources (shown in thousands) Property and Income Taxes State and Federal Revenue Investment Income Tuition Extracurricular Miscellaneous Total Revenues & Resources Other Financing Sources Expenditures & Services (shown in thousands) Instruction * Pupil Support Instructional Staff Support ** Board/Administration/Fiscal Business Support Plant Operation Transportation Central Support Operation of Non-instructional Extracurricular Facilities Acquisition & Construction Capital Outlay Debt Service Total Expenditures & Services *** Other Financing Uses Revenues & Resources Over (Under) Expenditures, Services & Financing Uses * Includes expenditures for teachers, teaching supplies, teaching equipment, and regular, special, and vocational instruction.** Includes expenditures that help teachers.*** General Fund expenditures increased from FY18 to FY21, due mainly to negotiated staff raises of 2.25% (FY18), 2.50% (FY19), 2.00% (FY20) and 2.00% (FY21). In the latest data released by the Ohio Department of Education (ODE) for the 2020-2021 school year, the Pickerington Schools spent 72.60% of all expenditures on classroom instruction. On an equivalent pupil basis, this equated to spending $9,876 per equivalent pupil. To calculate the expenditure per equivalent pupil, total classroom expenses are divided by Average Daily Membership, with added weights applied to students with higher needs (e.g., special education, English Learners). Pickerington also ranks 7th highest in percentage of operating expenditures out of 14 Ohio school districts with 10,000 or more students. More information about district spending can be found at https:// reportcard.education.ohio.gov/district/ finance/046896. How Much Do We Spend in the Classroom? $63,561 $56,245 $50,378 $62,176 $62,919 $61,493 $62,762 $61,014 $230 $1,793 $1,950 $720 $662 $459 $705 $820 $1,318 $974 $803 $1,010 $1,554 $1,734 $1,227 $1,388 $130,244 $122,699 $117,824 $127,128 $42 $1,650 $218 $315 FY21 FY20 FY19 FY18 $81,439 $79,566 $75,702 $72,428 $7,752 $7,940 $8,183 $7,657 $5,348 $5,529 $5,149 $5,304 $12,116 $11,587 $11,274 $11,111 $386 $460 $591 $502 $9,970 $10,680 $10,830 $10,831 $5,917 $5,917 $6,254 $6,070 $454 $101 $1 $120 $1,365 $1,305 $1,332 $1,151 $243 $41 $65 $100 $2,061 $1,930 $2,175 $2,010 $42 $1,639 $0 $259 $1,093 $1,042 $733 $881 $128,186 $127,739 $122,287 $118,425 $500 $1,252 $750 $1,000 $1,600 ($4,640) ($4,995) $8,017 6 In November of 2021, Moody's Investor Services updated its credit analysis of the Pickerington Schools, and it affirmed its Aa2 rating of the Pickerington Schools. According to the Moody's scale, this deems Pickerington Schools' long-term debt to be considered Investment Grade, and is considered to be in the 2nd highest tier of Investment Grade debt (high-grade). The report noted the following credit strengths: 1. Resident income of 163% of US the median is very strong. 2. Cash balance of 35.1% is robust. Similar to a 'credit-score' for a private individual, our Moody's rating provides potential purchasers of district debt with the assurances that their investment is sound. This ultimately means lower borrowing costs for the district in the form of lower interest rates, which is an important factor leading into any proposed future bond issue to build new facilities to address robust enrollment growth. More info: https://www.pickerington.k12.oh.us/ finances/ Moody’s Investor Services Updated Analysis Total Revenues and Resources (Shown in thousands) $130,244 TotalExpendituresand Services (Shown in thousands) $128,186 7 Property Taxes Property taxes provide most of the local revenue to operate and maintain our schools. The district receives property taxes from residents and businesses in Fairfield and Franklin counties. This graph shows revenues received by the General Fund from real and personal property taxes. For FY21, property taxes increased $2.9 million (7.48%). Actual tax cash receipts actually increased $1.7 million, or 4.31%, from FY20. The remaining increase in property tax revenue is due to fluctuations in the amount of tax advances available from the Fairfield and Franklin County Auditors at June 30, 2021, June 30, 2020, and June 30, 2019, which are recorded as revenue. State Funding State money is critical to running a fiscally solvent school district. The primary components of state revenues are unrestricted state aid, consisting of State Foundation (a formula calculation based upon student enrollment), and property tax allocations, which include homestead and rollback payments. Those payments represent the portion of the local tax bill paid by the state on behalf of district residents. This graph shows revenues for the district’s General Fund from the state of Ohio. In contrast to several consecutive years of increasing funding, state funding during the FY20-FY21 biennium was negatively impacted by budget cuts from the state of Ohio resulting from the Coronavirus How Many, and What Percent, of Students Are Publicly Educated? Nursery School / Preschool 456 53.27% Kindergarten 736 94.00% Elementary:Grades 1-4 2,929 87.07% Elementary:Grades 5-8 3,128 91.68% High School:Grades 9-12 3,562 92.04% College, Undergraduate 2,093 80.94% Source: ACS 5-Year Estimates 8 School District Income Tax The district has a 1 percent income tax. Revenues from the income tax are reported in the district’s General Fund and are used to support school operations. In FY21, income taxes increased over FY20 because the tax filing deadline for calendar year 2019 was moved to July 15, 2020. This shifted a significant amount of FY20 tax revenue to FY21. Source: ACS 5-Year Estimates Presence of Computer and Type of Internet Community Statistics 2019 2018 Has a Computer 17,251 17,094 With Dialup Internet Alone 36 97 With Broadband Internet 16,427 16,169 Without Internet Subscription 788 828 No Computer 738 764 Total 17,989 17,858 Income in the Past 12 Months (in 2019 Inflation-Adjusted Dollars) Households Families Married-Couple Nonfamily Families Households Less than $10,000 1.90% 1.6% .10% 5.4% $10,000 to $14,999 1.60% .70% .10% 5.5% $15,000 to $24,999 5.00% 2.60% 1.10% 10.80% $25,000 to $34,999 7.10% 5.10% 3.50% 15.90% $35,000 to $49,999 8.20% 7.30% 6.10% 11.80% $50,000 to $74,999 15.10% 14.00% 11.60% 21.10% $75,000 to $99,999 14.30% 14.20% 14.40% 12.30% $100,000 to $149,999 25.40% 28.60% 32.30% 11.90% $150,000 to $199,999 12.20% 14.30% 17.30% 4.50% $200,000 or more 9.40% 11.70% 13.40% .80% Median income $93,840 $107,387 $118,518 $50,414 Mean income $107,209 $119,338 N/A $60,730 Source: 2019 ACS 5-Year Estimates Total 17,989 14,039 11,446 3,950 9 Beginning Balance $31,531,298 $31,693,521 $29,302,271 $26,457,886 $20,724,731 $11,895,311 + Revenue $125,867,889 $126,564,124 $130,519,779 $132,614,360 $134,756,222 $140,150,246 - Expenditures ($125,705,666) ($128,955,374) ($133,364,164) ($138,347,515) ($143,585,642) ($149,119,016) Revenue Surplus or (Deficit) $162,223 ($2,391,250) ($2,844,385) ($5,733,155) ($8,829,420) ($8,968,770) Ending Balance $31,693,521 $29,302,271 $26,457,886 $20,724,731 $11,895,311 $2,926,541 Five-Year Forecast The district is forecasting operating deficits for the next 5 school years. Our current five-year forecast, presented on a cash basis, projects Pickerington Schools will maintain at least a $10 million end-of-year cash balance through at least June 30, 2025. The district has not placed an operating levy on the ballot since 2011. Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 Fiscal Year2025 Nativity by Language Spoken at Home, Population 5-17 Years Old English only 10,648 Spanish 295 Indo-European 292 Asian/Pacific Islander 86 Other 124 Source: ACS 5-Year Estimates Race by Total Population White alone 37,962 Black/African American 9,445 American Indian/Alaska Native 14 Asian 2,027 Hawaii/Pacific Island Native 56 Other race 991 Two or more races 1,864 Community Statistics Fiscal Year 2026 Median Home Value 2021 $220,930 2020 $219,970 Source: Fairfield County Auditor 10 Outstanding Debt at Year End The chart below captures the district’s long-term bond obligations. These bonds were issued for construction and/or renovation of school buildings and construction of a public library. Outstanding Debt (shown in thousands) Series 2006 Capital Appreciation Bonds Series 2006 Capital Appreciation Bonds Accreted Interest Series 2014 Current Interest Refunding Bonds Series 2015 Current Interest Refunding Bonds Series 2016B Current Interest Refunding Bonds Series 2016 Current Interest Refunding Bonds Series 2020 Current Interest Refunding Bonds Graduation Rate (4-year) 95.2% Student Attendance Rate 92.6% Class of 2018 Entering College Within 2 Years 74.4% % Meeting Third Grade Reading Guarantee 100% Performance Data From the 2020-21 State Report Card ACT Participation 94.2% AP Course Participation 58.8% Teachers with Master’s Degrees 80.8% Average Experience of Teachers 14 years Amounts shown in thousands Source: 2020-21 State Report Card. More details can be found at https://education.ohio.gov and in the Pickerington Schools ACFR at www.pickerington.k12.oh.us/finances/ Total Outstanding Debt: FY21 FY20 FY19 FY18 $0 $0 $1,548 $3,245 $0 $0 $3,792 $6,954 $8,450 $20,400 $23,130 $25,755 $8,805 $8,805 $8,805 $8,805 $10,010 $10,010 $10,010 $10,010 $9,900 $37,855 $44,365 $45,260 $46,130 $75,020 $83,580 $92,545 $100,899 Median Earnings Past 12 Months by Gender by Educational Attainment Educational Attainment Level Less than high school graduate High school graduate (includes equivalency) Some college or Associate's Degree Bachelor's Degree Graduate or professional degree Male Female Total $40,613 $25,019 $26,629 $44,029 $27,137 $33,861 $52,667 $34,968 $43,099 $81,621 $54,778 $65,947 $88,583 $68,665 $81,871 Community Statistics Source: 2019 ACS 5-Year Estimates 11 2021 $1,380,621,480 $199,704,810 $36,931,130 $1,617,257,420 2020 $1,329,689,610 $204,456,910 $31,257,790 $1,565,404,310 2019 $1,293,190,780 $200,415,100 $30,273,440 $1,523,879,320 2018 $1,056,812,230 $188,993,210 $26,389,680 $1,272,195,120 2017 $1,034,462,730 $188,373,010 $23,973,550 $1,246,809,290 2016 $1,015,327,750 $178,813,220 $21,581,640 $1,215,722,610 2015 $929,969,940 $190,934,860 $21,084,440 $1,141,989,240 Unbundling the Tax Rate District tax rates (except inside millage) are reduced as valuations increase. In accordance with House Bill 920, as property values increase during the triennial update and reappraisal periods, the voted millage is reduced. As a result, the district receives the same amount of voted tax revenue as it did when voters initially approved each levy. The district only receives additional tax revenue from new construction or when voters approve new tax issues. The chart below shows the difference in the district’s gross (voted) residential/agricultural tax rates, compared to the effective rates, which are what is collected. These rates are for the 2021 tax year, collected in 2022. Type Gross Rate Effective Rate Length Approved Inside - Operating 4.50 4.50 Permanent Voted - Operating 67.70 22.93 Permanent Classroom Facilities 0.50 0.30 31 Years Bond Retirement 7.00 7.00 Various Total Rates 79.70 34.73 Tax Burden on Homeowners Assessed Values of Real Property CollectionYear Agricultural/Residential & Other Real Estate Public Utility Personal Property Total During the past five collection years, overall growth of taxable valuation has averaged 6.61%. During that same time, growth in residential values due to new construction has averaged 2.18%. Commercial/ Industrial Tax Rollback Factors: Increase in Valuation Does Not Equal Increase in Voted Taxes While the valuation of taxable property in aggregate across the district has grown substantially over the past five years, the chart above shows that voted tax rates have been ‘rolled back’ accordingly consistent with Ohio Law. This means that the tax burden on a $250,000 home in 2018 has decreased by about 18.94% by 2021. $3,116 PAFR, ACFR Receive GFOA Awards Following a review by a panel of independent reviewers, the district’s Popular Annual Financial Report (PAFR) for the year ending June 30, 2020, received the Award for Outstanding Achievement in Popular Annual Financial Reporting from the Government Finance Officers Association (GFOA) of the United States and Canada. The evaluation included evaluation of information presented, reader appeal, understandability, distribution, and other elements. Pickerington Schools also received the Certificate of Achievement for Excellence in Financial Reporting from the GFOA for its Annual Comprehensive Financial Report (ACFR). The Certificate of Achievement is the highest form of recognition in the area of government accounting and financial reporting. Its attainment represents a significant accomplishment by a governmental agency and its administrators.