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HomeMy WebLinkAboutBeavercreek City Schools - Public Financial ReportBeavercreek City School District Fiscal Year 2020/2021 PAFR TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada (GFOA)hasgivenanAwardforOutstandingAchievementinPopularAnnual FinancialReportingtotheBeavercreekCitySchoolDistrictforitsPopular AnnualFinancialReportforthefiscalyearendedJune30,2020.TheAwardfor OutstandingAchievementinPopularAnnualFinancialReportingisaprestigious nationalawardrecognizingconformancewiththehigheststandardsfor preparationofstateandlocalgovernmentpopularreports. InordertoreceiveanAwardforOutstandingAchievementinPopularAnnual FinancialReporting,agovernmentunitmustpublishaPopularAnnualFinancial Report,whosecontentsconformtoprogramstandardsofcreativity, presentation,understandability,andreaderappeal. AnAwardforOutstandingAchievementinPopularAnnualFinancialReporting isvalidforaperiodofoneyearonly.Webelieveourcurrentreportcontinuesto conformtothePopularAnnualFinancialReportingrequirements,andweare submittingittoGFOAtodetermineitseligibilityforanotherAward. 1 Beavercreek City School District Fiscal Year 2020/2021 PAFR Dear Friends of the Beavercreek City School District: The Treasurer’s office is pleased to present the Beavercreek City School District’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. The PAFR is an unaudited report that summarizes the District’s financial activities and operating results in a way that can be more easily understood by the reader. The School District has also published an Annual Comprehensive Financial Report (ACFR) for fiscal year 2021. The ACFR is an audited report and is prepared on a Generally Accepted Accounting Principles (GAAP) basis, which requires greater disclosure than the PAFR. Copies of the PAFR and ACFR may be requested from the Treasurer’s office by calling (937) 426-1522 or on the School District’s website at: https://www.gocreek.org/page/comprehensive-annual-financial-reports https://www.gocreek.org/page/popular-annual-financial-reports-pafr School District Profile The Beavercreek City School District provided education and related services to 7,658 students in grades K through 12 for the 2020-2021 school year. Geographically, the School District encompasses 52 square miles located primarily within the City of Beavercreek and Beavercreek Township. The population of the City of Beavercreek was estimated to be 55,451 for calendar year 2020. The unemployment rate for the area was 5.2% at June 30, 2021 and the median personal state income for calendar year 2019 (latest available information) was $54,975. The students enrolled in the School District attend 6 elementary schools (K-5), 2 middle schools (6-8), 1 freshman school (9), 1 high school (9-12), and 1 pre-kindergarten center. The School District currently has about 920 full-time employees; approximately 470 are teaching professionals, all of whom have at least a bachelor’s degree. The 2020-2021 starting salary for a teacher with a bachelor’s degree was $41,261; the maximum teacher salary (master degree with 45 additional credit hours and 32 years’ experience) is $108,067. An elected five-member Board of Education serves as policy makers of the School District. The Board adopts the annual tax budget and annual appropriations resolution that serves as the basis for control over and authorization of all expenditures of the School District’s tax money. Elected Officials/Board of Education Administrative Personnel JoAnn Rigano President Paul Otten Superintendent Dennis Morrison Vice-President Krista Hunt Member Penelope Rucker, M.Ed. Treasurer/CFO Chris Stein Member Gene Taylor Member 2 Beavercreek City School District Fiscal Year 2020/2021 PAFR School District Initiatives and Achievements Mission Statement TO CREATE A STUDENT-CENTERED EDUCATIONAL COMMUNITY THROUGH INNOVATION AND COLLABORATION, INSPIRING AND PREPARING ALL TO LEAD AND SERVE. Major Initiatives and Achievements: The 2020-2021 academic school year brought many challenges and opportunities for growth, including: ¾ In response to the needs of our families amidst the on-going global pandemic, the District provided families with fully online options for students in grades K-12; Lincoln Learning to students in grades K-5 and Edmentum Courseware, customized by our teachers, to students grades 6-12. To support our online students, the role of Teacher Student Advocate (TSA) was created and teachers across the district had time reserved in their schedules to serve students in this new way. A few weeks into the school year, it became clear that Lincoln Learning was not going to meet the needs of many of our elementary online students, so we quickly created and launched a virtual option utilizing our own teachers and tools from Google. ¾ The District continues to prioritize meeting the needs of the whole child through the work of the Whole Child Advisory Council. For the 2020-2021 school year, the Council focused on conducting a student school climate survey to determine areas of strength and need which was used to develop a District Whole Child Plan targeting student/teacher connectivity and college and career readiness. Once completed, the District’s Whole Child Plan was shared with building staff, buildings created a building level goal that extended the District's Whole Child Plan or developed a different goal based on the student school climate survey. The goals established through this process are to be implemented in the 2021-2022 school year. ¾ The Social Emotional Learning assessment will be developed in conjunction with the implementation of the Whole Child Plan during the 2021-2022 school year aimed at identifying student needs and services that could be provided to meet those needs. The District added social services and healthcare workers to help identify the needs and have partnered with numerous social and healthcare service providers in the area to assist in providing the necessary services to our students. Beavercreek City Schools’ Character Education Program supports and aligns with the District’s vision to Inspire, Lead, and Empower our students. Our Character Education Program is a key component to helping our students understand what it means to lead and to be good citizens. The core of the program encompasses pillars of character that include caring, citizenship, fairness, respect, responsibility, and trustworthiness. Each year, Beavercreek selects a character education theme and a corresponding service- learning opportunity. The 2020-2021 service-learning theme was Creek United, selected due to the impact the pandemic had on our school and community. The Character Education Committee created activities throughout the year to help ensure that all students, in person and virtual, felt connected to their school community. This included letters to students who were virtual, social groups for virtual students, and a community wide scavenger hunt. The elimination of State testing in the spring of 2020 and the elimination of accountability measures related to testing conducted in the Spring of 2021 continues to limit the type of data the District has historically shared within this report. Our continued use of NWEA MAP, as well as analysis of data from Spring of 2021 state assessments has enabled the District to continue to identify strengths and areas for growth related to academic achievement. A particular area of success evidenced by the Ohio State Testing results is a District-wide strength in writing, which has been an on-going focus area for the District. We continue to identify ways to improve instructional practices related to differentiated instruction for all students in response to the analysis of our student data. The District also developed curricular maps to align with the social emotional learning standards developed by the Ohio Department of Education during the 2019-2020 school year and implemented those standards throughout the 2020-2021 school year. 3 Beavercreek City School District Fiscal Year 2020/2021 PAFR Summarized Financial Reports Readers of the Financial Activity Statement and Financial Position Statement should keep in mind that the numbers in both reports are taken from the District’s Comprehensive Annual Financial Report (ACFR), but are presented in a non-GAAP format. Revenues and Resources over Expenditures and Services The Financial Activity Statement, known in accounting terms as the income statement, provides a summary of the resources (revenues) and services (expenditures) of the District’s General Fund. Resources Taken In (in thousands) FY’21 FY’20 FY’19 FY’18 Taxes $73,326 $66,857 $60,614 $59,188 State and Federal Revenue 23,495 21,867 23,574 21,421 Investment Income 71 755 1,157 522 Tuition & Fees 1,848 2,116 1,889 2,238 Extracurricular 271 363 322 362 All Other Sources 341 342 251 258 TOTAL Revenues & Resources 99,352 92,300 87,807 83,989 Services Provided (in thousands) FY’21 FY’20 FY’19 FY’18 Instruction: Regular $40,170 $37,646 $38,520 $36,923 Special 19,831 18,828 18,495 21,421 Student Intervention Services 454 231 224 299 Vocation and Other 2,934 2,596 2,489 2,620 Support Services: Pupils 6,695 6,201 5,944 5,688 Instructional Staff 2,108 2,221 2,337 2,324 Board of Education 64 53 58 81 Administration 6,045 5,746 5,791 5,406 Fiscal 1,675 1,634 1,393 1,264 Business 383 359 368 385 Operation and Maintenance of Plant 6,823 6,439 6,822 6,732 Pupil Transportation 5,865 5,654 6,292 5,836 Central 1,149 1,221 1,120 1,055 Operation of Non-Instructional Services 10 1,394 37 31 Extracurricular Activities 1,744 1,761 1,627 1,680 Capital Outlay 782 104 1,288 62 All Other Uses 259 259 259 0 TOTAL Expenditures & Services 96,991 92,347 93,064 87,569 Revenues & Resources Over Expenditures & Services 2,361 (47) (5,257) (3,580) 4 Beavercreek City School District Fiscal Year 2020/2021 PAFR Our Expenditures and Services: Overall, expenditures of the General Fund increased by $4.6 million for fiscal year 2021 compared to those reported for fiscal year 2020 due to additional employees as well as general increase in wages and benefits of existing employees. Of the $4.6 million increase in expenditures, nearly $4.1 million were reported in the direct student instruction functional areas based on the implemented academic goals implemented. Definitions Instruction includes the activities directly dealing with the teaching of pupils or the interaction between teacher and pupil. Teaching may be provided for pupils in a school, in a classroom, in another location, such as in a home or hospital, and through other approved media such as television, radio, telephone, correspondence and aides or classroom assistants of any type who assist in the instructional process. Technology used by students in the classroom or technology that has a student-instruction focus should also be coded here. Instruction includes regular, special, student intervention services, vocational and other instructional services. Support Services provide administrative, technical (such as guidance and health), and logistical support to facilitate and enhance instruction, and to a lesser degree, community services. Supporting services exist as adjuncts for the fulfillment of the objectives of instruction, rather than as entities within themselves. Support services include pupils, instructional staff, board of education, administration, fiscal, business, operation and maintenance of plant, pupil transportation, and central services. Operation of Non-Instructional/Shared Services are concerned with providing non-instructional services to students, staff or the community. Also includes providing certain services to other school districts. Extracurricular Activities are activities under the guidance or supervision of qualified adults which are designed to provide opportunities for pupils to participate in such experiences on an individual basis, in small groups, or in large groups - at school events, public events, or a combination of these - for purposes such as motivation, enjoyment, and skill improvement. In practice, participation usually is not required and credit usually is not given. When participation is required, or credit given, the activity generally is considered to be curricular course. Capital Outlay activities are concerned with acquiring land and buildings, remodeling buildings, constructing buildings and additions to buildings, initially installing or extending service systems and other built-up equipment, and improving sites. Debt Service Transactions primarily for the purpose of discharging the School District's commitment for interest and principal on debt. 5 Beavercreek City School District Fiscal Year 2020/2021 PAFR Our Revenues and Resources FY 21: Where the General Fund Money Comes From Our Expenditures and Services FY 21: Where the General Fund Money Goes Taxes 73.8% Tuition&Fees 1.9%Interest 0.1% Intergovernmental 23.6% Extracurricular 0.3% Other 0.3% Instruction 65.4% Extracurricular 1.8% SupportServices 31.8% AllOtherUses 1.0% 6 Beavercreek City School District Fiscal Year 2020/2021 PAFR Assessed Values of Property Real Estate Taxes Collection Year Residential/ Agricultural Commercial/ Industrial Public Utility Total 2022 $1,559,366,980 $484,500,440 $47,383,960 $2,091,251,380 2020 1,369,114,770 471,756,730 46,490,400 1,887,361,900 2019 1,353,095,620 460,311,550 43,586,740 1,856,993,910 2018 1,335,577,410 467,100,610 41,177,570 1,843,855,590 2017 1,247,737,900 461,030,990 39,757,570 1,748,526,460 State and Federal Sources State and Federal sources of revenue generated nearly $23.5 million or 23.7% of all General Fund revenue. State support comes mostly from State Aid, which is a formula calculation based upon student enrollment. The Ohio General Assembly determines what an adequate education costs in the State’s biennial education budget (Basic State Aid). The $1.6 million increase in intergovernmental revenue for fiscal year 2021 compared to the prior year related to the elimination of the reductions in Basic State Aid implemented by the State during the last quarter of fiscal year 2020 in an effort to offset State budget issues caused by the pandemic. The State of Ohio also provides taxpayers with property tax relief which is subsequently remitted to the district by the State. A significant portion comes from Rollback and Homestead payments, which represents the portion of the local tax bill paid by the State instead of the local taxpayer. Currently, the State pays 10% of the taxes due on all property and an additional 2.5% on residential and agricultural owner-occupied property. An additional exemption is provided to senior disabled citizens, regardless of income. The most recent State budget, however, has eliminated the property tax rollback on any new levy passed after August 2013. Further property tax relief was granted in 2005 when the State eliminated the tangible personal property tax on businesses Other sources of intergovernmental revenue include the public utility reimbursement, tangible personal property loss reimbursement, federal impact aid, and casino revenue. In Ohio, the funding of schools is shared by the State and local school districts. The chart below depicts the different intergovernmental revenue sources received by the School District as a percentage of total intergovernmental revenue. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2021 2020 2019 Miscellaneous SharedCasinotax ReimbursementofPPTaxLoss FederalImpactAid Homestead&Rollback BasicStateAid 7 Beavercreek City School District Fiscal Year 2020/2021 PAFR Five Year Financial Forecast The School District annually prepares a five-year forecast, which is required by the State of Ohio, to ensure long-term financial success. The five-year financial forecast provides actual cash basis data on each major revenue and expenditure category for the past three fiscal years and forecasts these same categories for an additional five fiscal year. The five-year financial forecast is a planning tool used to certify if funds are available for future expenditures and additionally to strategize when the School District will need to return to voters for additional funds or reduce expenditures accordingly. The five-year financial forecast is published on the Ohio Department of Education’s website for public use. Revenue amounts presented below anticipate future renewal of existing property tax levies set to expire during the projected period. Actuals by Fiscal Year - General Fund As of June 30, 2019 2020 2021 Revenue $87,488,237 $92,216,169 $100,223,918 Expenditure 90,859,448 92,456,157 96,452,078 Ending Balance 21,340,646 21,100,658 24,872,498 Projected Five-Year Forecast by Fiscal Year - General Fund 2022 2023 2024 2025 2026 Revenue $100,751,987 $100,918,715 $102,314,113 $103,428,998 $103,909,443 Expenditure 98,881,157 100,834,268 105,027,515 109,643,537 114,468,687 Ending Balance 26,258,601 26,343,048 23,629,646 17,415,107 6,855,863 Note: Five-year forecast is required to be prepared using the cash basis of accounting, which is a different accounting basis than that presented within the School District’s annual ACFR. In May 2019, voters approved a new, 6.15 mill five-year emergency operating levy that is estimated to generate an additional $11.4 million per year for the School District. Since property taxes are levied and paid on a calendar year basis while the School District reports on a fiscal year ending June 30th; property taxes received within a fiscal year represent the 1st half of one tax year and the 2nd half of another tax year. Therefore, only one-half of the anticipated additional taxes was collected during the 2nd half of fiscal year 2020; fiscal year 2021 was the first full year of collection of the additional revenue. Voter approval will again be needed within five years for this additional revenue to continue. The School District also has a 10.9 mill emergency operating levy, which would begin to phase out in fiscal year 2022, if not renewed prior to December 31, 2021. This levy renewal was approved by voters in May 2021, with nearly 75% voting yes. All other operating levies are continuing levies and therefore do not need voter approval for collections to continue. $Ͳ $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 2019 2020 2021 2022 2023 2024 2025 2026ReceiptsDisbursementsEndingBalance 8 Beavercreek City School District Fiscal Year 2020/2021 PAFR Property Values and Taxes Property taxes are assessed and levied on a calendar year basis. The School District receives property taxes from two taxing years during the School District’s fiscal year that begins July 1st and ends June 30th. The assessed values upon which the fiscal year 2021 taxes were collected are as follows: Property Values 2019 % Change 2020 %Change 2021 Real Property $1,813,407,170 1.52% $1,840,871,500 11.03% $2,043,867,420 Public Utility $43,586,740 6.66% $46,490,400 1.92% $47,383,960 Total $1,856,993,910 1.64% $1,887,361,900 10.80% $2,091,251,380 Overall, there was a 10.8% increase in property values from 2020 to 2021 due to complete property reappraisal, which occurs once every six years, as well as the significant increase in real estate prices in the local area. It is important to remember the School District does not receive an equal corresponding increase to property tax revenue due to tax limits imposed by State statutes. Comparative Data When comparing itself to other school districts, the School District uses the most recent information provided by the Greene County Auditor. This data provides the most reliable comparison among school districts. Property Tax Rates - Since the School District depends on local tax support for 73.8% of its general fund revenue, tax rates are crucial to the School District and its taxpayers. HB 920 reduces the voted millage rate to an effective tax rate in order to generate the same amount of revenue received in the first year of collection. When taxpayers vote for a certain number of mills, they are actually voting for the collection of a specific amount of money. That is because mills are a fraction of the community’s total assessed value. Several districts above supplement property taxes with local school district income taxes. Income tax rates of 1.00% are denoted by “ * ”, 1.25% denoted by “ ** ”, and 0.50% denoted by “ *** “ above. Ͳ 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Greeneview* CedarCliff** Xenia*** Beavercreek Fairborn*** BellbrookͲSugarcreek YellowSprings* SchoolTax RateͲ GreeneCounty Operating DebtService Improvements 9 Beavercreek City School District Fiscal Year 2020/2021 PAFR Property Tax Rate Structure The manner in which the School District’s property tax levies are structured is important to ensure adequate resources are available to meet operating expenses. If levies set to expire are not renewed or replaced prior to the expiration date, the School District will encounter loss of revenue associated with that particular levy for at least one calendar year. The School District currently has two operating levies that will require subsequent voter approval for collection to continue; the 6.15 mill emergency levy initially approved by voters in May 2019 and will expire on December 31, 2024 and the 10.9 mill emergency levy recently renewed by voters in May 2021 which expires on December 31, 2026. Combined, these two levies represent 36.6% of the operating property tax revenue projected to be collected in fiscal year 2022, which underscores the importance future levy renewals. Levy Type Millage Rate Expiration Date Operating Inside Millage - unvoted 4.6 Continuous Continuous Operating Millage - voted 25.5 Continuous Substitute Emergency Operating Levy - voted 6.3 Continuous 5-year Emergency Operating Levy – voted 9.7 12/31/2026 5-year Emergency Operating Levy – voted 6.1 12/31/2024 Bond Issues 28-year, $84 million Bond Levy – voted 2.6 12/31/2035 Permanent Improvements Inside Millage – unvoted 1.0 Continuous 5 year Permanent Improvement Levy – voted 1.0 12/31/2023 Outstanding Debt At fiscal year ended June 30th Issue 2021 2020 2019 Voted Improvement & Refunding Bonds $65,207,579 $69,310,017 $74,525,053 Unvoted Athletic Facility Bonds 225,000 335,000 440,000 Energy Conservation Bonds 3,348,000 0 0 Capital Lease Obligations 486,821 715,782 935,619 Total $69,267,400 $70,360,799 $75,900,672 During fiscal year 2021, the School District paid a total of $6.1 million in principal debt service payments and anticipates paying an additional $4.9 million in fiscal year 2022. During the fiscal year, the School District advanced refunded $20.2 million of previously issued debt to save $3.6 million in debt service payments over the next 15 years and issued $3.3 million of energy conservation lease-purchase obligation bonds to finance lighting projects throughout all School District facilities. 10 Beavercreek City School District Fiscal Year 2020/2021 PAFR Statement of Net Position - All Funds The Statement of Net Position presents an aggregate view of the School District governmental activities and provides a long-term view of those finances. The Statement of Net Position is organized so the reader can understand Beavercreek City School District as a financial whole, an entire operating entity. This statement includes assets and deferred outflows of resources and liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private- sector companies. The accrual basis of accounting takes into account all the current fiscal year’s revenues and expenses regardless of when cash is received or paid. The amount below represents the difference between the assets and deferred outflows of resources and the liabilities and deferred inflows of resources which the School District must pay. This amount provides the “net position” of the School District. Assets 6/30/2021 6/30/2020 6/30/2019 Cash and Investments $36,751,766 $34,280,024 $36,353,964 Receivables 85,168,944 84,090,194 78,731,590 Other Assets 3,367,628 59,714 65,207 Capital Assets 78,669,596 83,446,926 89,538,872 Total Assets 203,957,934 201,876,858 204,689,633 Deferred Outflows of Resources Deferred Outflows of Resources 32,591,472 32,963,193 41,101,823 Liabilities Current Liabilities 10,873,733 10,122,087 12,136,630 Long-Term Liabilities 207,435,450 201,865,893 205,625,480 Total Liabilities 218,309,183 211,987,980 217,762,110 Deferred Inflows of Resources Deferred Inflows of Resources 92,608,148 92,763,036 88,701,030 Net Position Total Net Position $(74,367,925) $(69,910,965) $(60,671,684) The increases in pooled cash and receivables due to additional tax revenues associated with new tax levy which was in its first full year of collection. Net capital assets decreased as current year depreciation expense exceeded current year capital asset additions. The increase in the net pension accounts for most of the increase in long-term liabilities, as well as deferred outflows and inflows of resources, offset somewhat by scheduled debt payments made. 11     Beavercreek City Schools Snapshot   EMPLOYEES           Maintained by District custodians, maintenance and ground staff: STUDENTS         SQUARE FOOTAGE 2021 GRADUATION RATE         ACREAGE   STUDENTS BUSSED DAILY BUSES IN FLEET         LUNCHES SERVED  2021 ATTENDANCE RATE