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HomeMy WebLinkAboutSpringfield City School District - Public Financial ReportDIVERSE COLLABORATIVE STUDENT-CENTERED CURIOUS POPULARANNUALFINANCIALREPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 1500 W Jefferson Street, Springfield, Ohio 45506 • Phone:(937) 505-2800 • www.scsdoh.org EVERY STUDENT EVERY OPPORTUNITY EVERY DAY 2021 FINANCIAL POSITION STATEMENT The Financial Position statement below shows what the District has compared to what the District owes. The difference between the two is Net Position of the District. Currently we have Net Position of $113 million. The District experienced an increase in Net Position from prior year due to an increase in restricted grant revenue and increase property tax revenue. STATEMENT OF NET POSITION ALL FUNDS AS OF JUNE 30, 2020 AND JUNE 30, 2021 Assets 2021 2020 Cash & Investments $88,371,588 $84,679,858 Receivables $45,022,158 $38,597,634 Net OPEB Asset $6,596,219 $6,362,322 Capital Assets $154,595,420 $159,766,378 Deferred Outflows of Resources $23,484,363 $24,372,616 Total Assets $318,069,748 $313,778,808 Liabilites 2021 2020 Short-Term Liabilities $14,164,226 $12,814,787 Long-Term Liabilities $154,308,374 $147,958,894 Deferred Inflows of Resources $36,645,799 $37,741,439 Total Liabilities $205,118,399 $198,515,120 Total Net Position $112,951,349 $115,263,688 Total Liabilities and Net Position $318,069,748 $313,778,808 This Popular Annual Financial Report (PAFR) is intended to present the financial status of Springfield City School District in an easy-to-read format. We hope this helps you understand the basic financial health and the operations of our District. We also prepare a more detailed Annual Comprehensive Financial Report (AFCR) that reports all financial operations in accordance with Generally Accepted Accounting Principles (GAAP). The information presented on this page and the adjacent page is generated from accrual statements presented in the AFCR and includes all funds. The remainder of the report is reported on a cash basis and includes information related to the Five Year Forecast including the General Fund and related debt. The AFCR provides an additional level of detail. The AFCR and the Five Year Forecast can be obtained by contacting the Treasurer’s Department at 937-505-2811. We appreciate the support of our Board of Education for encouraging us to create this document. We sincerely hope that it helps demonstrate that our District is effectively managing our federal, state and local tax dollars to work to educate Springfield’s students. SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT We are proud to present this Popular Annual Financial Report for the Springfield City School District for the fiscal year that ended June 30, 2021. 2 Note: Fiscal Year 2020 is restated due to implementing GASB 84 in fiscal year 2021 STATEMENT OF ACTIVITIES ALL FUNDS AS OF JUNE 30, 2020 AND JUNE 30, 2021 Revenues 2021 2020 Property Taxes $27,784,499 $26,894,381 Basic Aid $82,895,090 $81,542,374 Program Grants $20,330,683 $17,148,466 Charges for Service $2,240,706 $2,950,426 Miscellaneous $2,776,798 $2,609,543 Total Revenues $136,027,776 $131,145,190 Expenses 2021 2020 Instruction $79,609,372 $71,846,377 Pupil Support $11,607,780 $9,722,658 Staff Support $6,012,475 $5,171,677 Administration $10,381,631 $9,241,166 Fiscal $1,976,063 $2,020,395 Maintenance & Operations $9,614,787 $9,291,838 Pupil Transportation $2,612,983 $2,727,539 Central $3,065,769 $3,053,786 Non Instructional Services $6,468,057 $6,855,025 Extracurricular Activities $1,086,061 $1,288,037 Interest and Fiscal Charges $593,844 $611,349 Unallocated Depreciation $5,311,293 $5,291,211 Total Expenses $138,340,115 $127,121,058 Change in Net Position ($2,312,339)$4,024,132 Net Position at Beginning of the Year $115,263,688 $111,239,556 Net Position at End of the Year $112,951,349 $115,263,688 EXPENDITURE DISTRIBUTION (GAAP BASIS) FY 2021 REVENUE DISTRIBUTION (GAAP BASIS) FY 2021 SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT 3 Note: Fiscal Year 2020 is restated due to implementing GASB 84 in fiscal year 2021 ACCOUNTING AND REPORTING Under State law, the District is required to prepare an appropriation budget, estimated revenue budget, a five year forecast and monthly reports on the cash basis of accounting. Revenues are reported when received and expenditures are recorded when expenses occur. The District uses the Five Year Forecast as the building block of the annual appropriation budget and documents the “budget to actual” variance to the Board of Education on a monthly basis. State law also requires the preparation of annual financial statements in accordance with Generally Accepted Accounting Principles, therefore, we prepare the Annual Financial Report. The table below reflects the conversion from cash statements to accrual statements of all funds. Accrual statements recognize revenues when measureable and earned, expenses are recorded at the time the liability can be measured. Accrual statements also record long term assets (assets with a life greater than or equal to seven years) and long term debt. The District provides financial reports in order to make the financial information as transparent and understandable to the user as possible. The experienced reader understands that the table below converts cash basis reports to accrual reports in an over simplified method and summarizes transactions posted to generate accrual statements. We prepared this report to link the documents because each report has value to management of the District and to any user requiring financial information, including the residents of the Springfield City School District. The remainder of this report focuses on the cash basis of reporting because the District believes in the importance of presenting consistent data locally, which relates to the Five Year Forecast that is required to be on a cash basis of reporting. SPRINGFIELD CITY SCHOOL DISTRICT BALANCE SHEET | ALL FUNDS AS OF JUNE 30, 2021 Assets Cash Conversion GAAP Cash & Investments $88,276,766 $94,822 $88,371,588 Receivables $0 $68,506,521 $68,506,521 Net OPEB Asset $0 $6,596,219 $6,596,219 Capital Assets $0 $154,595,420 $154,595,420 Total Assets $88,276,766 $229,792,982 $318,069,748 Liabilites Cash Conversion GAAP Short-Term Liabilities $0 $14,164,226 $14,164,226 Long-Term Liabilities $0 $190,954,173 $190,954,173 Total Liabilities $0 $205,118,399 $205,118,399 Total Net Position $88,276,766 $24,674,583 $112,951,349 SPRINGFIELD CITY SCHOOL DISTRICT INCOME STATEMENT | ALL FUNDS FOR FISCAL YEAR ENDED JUNE 30, 2021 Assets Cash Conversion GAAP Beginning Equity $84,327,806 $30,935,882 $115,263,688 Revenues $152,923,340 $(16,895,564) $136,027,776 Expenses/Expenditures $148,974,380 $(10,634,265)$138,340,115 Ending Equity $88,276,766 $24,674,583 $112,951,349 SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT4 CASH BASIS FIVE YEAR FORECAST The Five Year Forecast is the District’s projection of cash available; noting the general direction that the finances of the Springfield City School District are heading will help you understand any levy issues facing the District. The forecast reflects funding component computations from House Bill 110 (the State’s biennium budget). The Board of Education and District administration will continue to study the forecast and the educational needs with the resources the community provides. If you would like more detailed information you may obtain the complete Five Year Forecast by contacting the Treasurer’s Department. ACTUAL FOR FISCAL YEAR | GENERAL FUND Act 2019 Act 2020 Act 2021 Revenue $107,763,084 $106,372,199 $109,566,224 Expenditures $102,113,592 $99,975,977 $105,916,728 Ending Cash Balance $41,710,025 $48,106,247 $51,755,743 PROJECTED FIVE YEAR FORECAST BY FISCAL YEAR | GENERAL FUND Assets Est 2022 Est 2023 Est 2024 Est 2025 Est 2026 Revenue $98,701,150 $99,848,969 $100,003,535 $98,515,045 $97,343,615 Expenditures $94,365,927 $101,103,301 $108,229,756 $113,164,493 $118,407,009 Ending Cash Balance $56,090,966 $54,836,634 $46,610,413 $31,960,965 $10,897,571 FINANCIAL FIVE-YEAR FORECAST WITH 3 YEARS OF HISTORY | GENERAL FUND SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT 5 WHERE DOES THE MONEY COME FROM? Our District receives 76% of our revenues (all funds) from State and Federal sources. The largest revenue source for the Springfield City School District is the basic aid received per student from the State of Ohio. Our property tax receipts from our local taxpayers accounts for 21% of our revenue. GENERAL FUND AND RELATED FUNDS The District’s General Fund, which supports most of our operations, is made up of monies from the federal and state government, Springfield property tax revenues, and other sources like tuition, fees, and interest. Springfield property taxes made up 21% of our General Fund revenues in fiscal year 2021; these revenues totaled $22.7 million. The State and Federal revenue made up 77% of our General Fund revenues; these revenues totaled $81.5 million in fiscal year 2021. The largest portion of this was in the State Basic Aid which was $77.8 million. The relative contribution of each funding source is shown in the chart to the right. This chart illustrates the substantial risk that the District faces since 77% of our General Fund revenue is controlled by the State. UNDERSTANDING PROPERTY TAX Owners of residential or business real estate pay taxes to fund many services and agencies within their community. In the Springfield City School District, property taxes are collected to fund public education, social services, the career technical school, the city government, the county government and in some cases township expenses. The amount collected must be approved by the local voters. Most levies are approved for a certain period of time, and then put before the voters for renewal or replacement when they expire. In Springfield, our school levies are “fixed sum” levies, which means when voters approve a levy, they approve the total amount of money that the levy will provide. That total amount does not change over time – there is no inflation or cost-of-living increase in a fixed sum property tax. Furthermore, when this type of levy is renewed, the amount originally voted on remains in effect for the length of the renewal levy. UNDERSTANDING PROPERTY TAXES REQUIRES THAT YOU UNDERSTAND A FEW TERMS: Mill: 1/10 of a cent per $1,000 of assessed value Effective Millage: the actual tax rate collected after HB920 reduces the tax rates for inflation (See HB920) HB920: Common name of the Ohio law that requires the reduction of the property owner’s millage and limits tax dollars paid to the original levy (no inflation) Rollback and Homestead: Roughly a 12.5% tax credit to homeowners where the State pays 12.5% of the tax bills to the District, instead of having the homeowners pay that portion of their tax bill. This does not apply to New or Replaced levies, only renewal levies. SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT6 ALL FUNDS REVENUE DISTRIBUTION (CASH BASIS) FY 2021 GENERAL FUND REVENUE DISTRIBUTION (CASH BASIS) FY 2021 PROPERTY TAX REVENUE SOURCES (CASH BASIS) FY 2021 BY FUNCTION Direct Instruction: the largest expenditure includes all services dealing with teaching students. Building Operation: involves heating, cooling, custodial services, and keeping buildings and grounds safe and in good working condition. Administrative Support: includes the overall administration of the building and the District as a whole. These include centralized department heads, building principals and secretarial support. Pupil Support: are activities designed to assist and improve the well-being of the student and supplement the teaching process. These include guidance, nursing, speech, hearing, social and psychological services. Business Operations: Include fiscal services such as payroll, accounts payable, budgeting and auditing, as well as warehousing, purchasing and insurance. Instructional Staff Support: Includes library, technology integration, mentoring and teacher aides. Transportation: the cost of transporting students in accordance with the Board of Education policies and Ohio law. Food Service: includes expenditures to provide breakfast and lunch to students. Other: extracurricular activities and miscellaneous expenditures that do not fit in the other categories. Capital Outlay: acquisition or construction of facilities or purchase of other capital assets. Interest and Fiscal Charges: principal and interest payments on outstanding debt. BY OBJECT Salary and Benefits: are 73% of expenditures Purchased Services: includes payments to other schools in Ed Choice vouchers, community charter schools, utilities and contracts for services Supplies and Materials: office supplies, diesel fuel, instructional supplies and computer software Other: includes County Auditor and Treasurer fees, property insurance and other expenditures WHERE DOES THE MONEY GO? SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT GENERAL FUND EXPENDITURES BY FUNCTION (CASH BASIS) FY 2021 GENERAL FUND EXPENDITURES BY OBJECT (CASH BASIS) FY 2021 ALL FUNDS EXPENDITURES BY FUNCTION (CASH BASIS) FY 2021 7 SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT8 EXPENDITURE PER PUPIL The chart below shows how the Springfield City School District’s fiscal year 2021 expenditures per pupil compared to other districts, which the Ohio Department of Education has computed and determined, are similar to our district. Comparing the District to the group; we are in the top third of the expenditure per pupil, which reflects the increasing cost of the education of the students in urban areas. The top goal of the Board of Education and Administration is to increase student performance within the means provided by the community. MAJOR INITIATIVES AND PROJECTS The District continues its focus on aligning classroom instruction to Ohio’s Learning Standards in core subjects by increasing targeted professional development to this foundational educational practice. In addition, the District continued work with the State Support Team 10 to in the use of the Teaching and Learning Review (TLR). The TLR provides a research based platform to measure the use of best practices in the classroom setting. By analyzing the instructional practice data from the TLR, the District will better support more consistent and effective tier one instruction, which leads to improved student outcomes. In addition to the TLR, the District partnered with Leadership Excelleration to implement a leadership development program specifically designed to meet the needs of our leadership team that will ensure that the next generation of leaders are prepared to lead the district into the future. The intent of the partnership is to equip the SCSD Leadership Team to become high-potential leaders, succeed with strategy, alignment, and execution in current roles and succeed at the next level. The District is committed to positive behavior interventions and supports, a multi-tiered system of supports (MTSS), decreasing the number of exclusionary discipline actions, and aligning instruction with standards. In addition, the District continues to provide high quality preschool to families regardless of ability to pay. The decision to continue to commit resources to current programs and to continue to provide a no-cost preschool program were made because the School District believes in these foundational efforts that allow staff and students to grow together. The Career ConnectED Center at The Dome includes training spaces and meeting rooms, community oriented District program offices, and innovative spaces for students to develop power skills as they explore digital media, computer science, welding, and woodworking. Programming receives grant funding from the Community Health Foundation, The United Way, and Silfex. The CareerConnectED Center engages more than 1,000 students each year. The Springfield City School District’s role as a leader in addressing the full set of skills, traits, and behaviors required for success in college, career, and life continues to be recognized at the state level. SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT HOW YOUR SCHOOL PROPERTY TAXES ARE COLLECTED The effective residential property tax rate for the Springfield City School District for 2021 was 39.51 mills. Residential taxes are calculated by applying the effective rate to the assessed valuation of your property. The assessed valuation is only 35% of the fair market value of your property. The example to the right illustrates the tax bill calculation for a property that has a fair market value of $100,000. COMPARED VOTED AND EFFECTIVE MILLAGE RATES Because of HB920, school districts do not collect taxes at the voter-approved rates. Instead school districts get the taxes based on the effective (reduced) tax rates. The chart below illustrates the difference between the voter-approved tax rates and the actual tax rates collected. A TRUE COMPARISON OF PROPERTY TAXES The best way to compare school district property tax values is to compare what a 1 mill levy would raise per student. A wealthier tax base will raise more per mill per student. Because wealthier tax bases collect more per student, wealthier districts tend to have lower tax rates. Springfield has a low wealth tax base which translates to a low tax yield per unit. EXAMPLE Fair Market Value $100,000 Multiply Assessed Value 35% Equals Taxable Value $35,000 Multiply Millage Rate 0.03951 Equal Total Tax $1,383 Less State Credit 12.5%87.5% Total School Tax Billed to the Taxpayer $1,210 Beavercreek City SD $259.61 Centerville City SD $281.43 Greenville City SD $187.34 Kettering City SD $202.01 Lebanon City SD $194.50 Miamisburg City SD $199.35 Northmont City SD $146.07 Piqua City SD $121.53 Sidney City SD $138.93 Springboro Community SD $226.06 Springfield City SD $78.00 Trotwood-Madison City SD $71.28 Troy City SD $187.29 Vandalia-Butler City SD $234.34 Wayne Local SD $220.10 West Carrollton City SD $136.67 Xenia Community SD $173.73 It is important to note that February 2006 is the last new operating tax levy passed in the District. Renewal levies do not generate new revenues. Effective Millage Voted Millage 9 SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT10 HISTORY OF LEVIES Date Voted Millage Pass/Fail Type Purpose 19-Nov 7 Pass Renewal 10-Year Operating Nov-17 10.61 Pass Renewal Continuous Emergency Operating Nov-15 7 Pass Renewal 5-Year Operating May-13 4.96 Pass New Capital and Maintenance May-11 9.59 Pass Renewal 7- Year Emergency Operating Nov-09 7 Pass Renewal 5-Year Operating Feb-06 9 Pass New 5- Year Emergency Operating Nov-05 10.88 Fail New 5- Year Emergency Operating May-05 7 Pass Renewal 5-Year Operating Feb-05 8.99 Fail New 5- Year Emergency Operating Nov-04 8.99 Fail New 5- Year Emergency Operating Mar-04 10.15 Fail New 5- Year Emergency Operating Nov-00 Bond Pass New Construction $38 Million Nov-00 0.5 Pass New OFSC Maintenance Nov-99 7 Pass Renewal 5-Year Operating It is important to note that February 2006 is the last new operating tax levy passed in the District. Renewal levies do not generate new revenues. OUTSTANDING DEBT AT FISCAL YEAR ENDED JUNE 30, 2021 AND JUNE 30, 2020 Issue Outstanding 6/30/21 Outstanding 6/30/20 2006 Various Refunding Bonds $5,155,711 $4,889,128 2010 Energy Conservation Bonds $335,000 $400,000 2013 School Facility Construction Bonds $4,521,017 $4,797,854 2016 Refunding Bonds $2,644,279 $5,193,559 2019 School Facility Construction Bonds $8,464,808 $8,859,552 Total $21,120,815 $24,140,093 -$3,019,278 This table presents the District’s Long-Term Debt as of June 30, 2021. Outstanding debt decreased $3.02 million from the prior fiscal year. The District’s AFCR provides more detailed information. SPRINGFIELD CITY SCHOOL DISTRICT | POPULAR ANNUAL FINANCIAL REPORT THE SPRINGFIELD CITY SCHOOL DISTRICT ADMINISTRATION Robert F. Hill, Superintendent/CEO Nicole L. Cottrell, District Treasurer/CFO Kristen Kettlehake, Director of Teaching, Learning and Professional Development Michelle ‘MJ’ Jones, Executive Director of Human Capital Heidi Shanor, Director of Elementary Education Todd Buck, Director of Secondary Education Jennifer Bogenrife, Director of Student Services Ken Pack, Director of Technology 11 DIVERSE COLLABORATIVE STUDENT-CENTERED CURIOUS THE SPRINGFIELD CITY SCHOOL DISTRICT BOARD OF EDUCATION Mrs. Joan Elder Member Mr. Chris Williams Member Mrs. Carol Dunlap Member Ms. Anita Biles President Mr. Jamie Callan Vice President DIVERSE COLLABORATIVE STUDENT-CENTERED CURIOUS POPULARANNUALFINANCIALREPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 1500 W Jefferson Street, Springfield, Ohio 45506 • Phone:(937) 505-2800 • www.scsdoh.org Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to Springfield City School District Ohio For its Annual Financial Report for the Fiscal Year Ended June 30, 2020 Executive Director/CEO In 2020, the Springfield City School District earned national recognition for its Popular Annual Financial Report (PAFR). We are pleased to provide this easily read report to our community. This report, along with the more detailed Comprehensive Annual Financial Report (CAFR) are on our district website at www.scsdoh.org