HomeMy WebLinkAboutLakewood Local School District - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
LAKEWOOD LOCAL SCHOOLS
HEBRON, OHIO
HEBRON ELEMENTARY
LITTLE LANCERS
We are pleased to present the Lakewood Local
School District’s Popular Annual Financial
Report (PAFR) for the fiscal year ended June 30,
2021. As steward of the community’s investments
in its schools, the District is committed to ensuring
residents have easy access to and understanding of
Lakewood Local’s finances.
The PAFR summarizes the financial activities and
operating results reported in the Lakewood Local
School District’s audited Comprehensive Annual
Financial Report. The PAFR is unaudited and
presented on a non-GAAP (Generally Accepted
Accounting Principle) basis. The PAFR does not
include full disclosures or segregated funds. The
General Fund is the largest fund from which most day-
to-day programs and services are provided. Some
readers may be interested in exploring the more
Comprehensive Annual Financial Report. For more
detailed financial information, including a discussion of
key changes in financial data from last fiscal year, our
economic condition and outlook, and our initiatives
and accomplishments, please refer to a copy of the
Comprehensive Annual Financial Report, which
is available under the Treasurer’s webpage at
www.lakewoodlocal.k12.oh.us/TreasurerCFO.
The publication of this report is part of our
commitment to transparency. We would like to
thank our community for their encouragement
in creating a report designed to more adequately
address their needs as taxpayers, as well as
for the opportunity to serve them. Questions,
comments and feedback regarding this report are
encouraged, so please do not hesitate to contact
me by phone or email at (740) 928-1928 or at
gplaisted@lakewoodlocal.org.
Respectfully Submitted,
Glenna J. Plaisted
Treasurer/CFO
November 30, 2021
LAKEWOOD LOCAL SCHOOL DISTRICT COMMUNITY MEMBERS,
1 LLSD Popular Annual Financial Report 2021
Superintendent
Director of District Services
Treasurer/CFO
Board of Education
LAKEWOOD LOCAL SCHOOL DISTRICT
Administrative Office Telephone (740) 928-1928 525 East Main Street Facsimile (740) 928-3152 Hebron, Ohio 43025 www.lakewoodlocal.k12.oh.us
ADMINISTRATIVE STRUCTURE
As of June 30, 2021
AWARD FOR
OUTSTANDING ACHIEVEMENT
POPULAR ANNUAL
FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Lakewood Local School District for its Popular Annual Financial Report for the fiscal year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government popular reports.
In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal.
TABLE OF CONTENTS
Financial Chart Page
Income Statement 2
Outstanding Debt 2
Balance Sheet 3
Five-Year Forecast 3
Revenues and Resources 4
Expenditures & Services 5
Local Property Taxes 6
State Funding 6
Assessed Values and Tax Rates 7
REVENUES AND RESOURCES OVER EXPENDITURES AND SERVICES (INCOME STATEMENT)
The income statement provides a summary of the district revenues and resources compared to the expenditures and services provided by the District. The amounts below reflect the General Fund.
Revenues & Resources FY21 FY20 FY19 FY18 (shown in thousands) #
Local Taxes $15,070 $14,719 $12,704 $14,768
State and Federal Revenue 7,080 7,010 7,870 8,179
Investment Income 47 393 506 249
Tuition & Fees 1,507 1,423 1,012 1,297
Other Revenues 376 208 128 187
Total Revenues & Resources $24,080 $23,753 $22,220 $24,680
Expenditures & Services FY21 FY20 FY19 FY18 (shown in thousands) #
Instruction * $14,991 $15,016 $14,590 $13,949
Pupil Support 1,203 1,355 1,572 1,557
Instructional Support** 933 801 718 629
Board/Administration/Fiscal 2,880 2,887 2,867 2,769
Business Support 14 16 26 27
Plant Operation 2,178 2,128 2,217 2,106
Transportation 1,918 1,882 1,797 1,828
Central Support 82 68 39 22
Extracurricular 381 376 360 350
Non-Instructional 42 10 3 1
Capital Outlay 394 82 52 1,672
Debt Service 38 31 31 36
Total Expenditures & Services $25,054 $24,652 $24,272 $24,946
Revenues & Resources (under) Expenditures & Services ($974) ($899) ($2,052) ($266)
LLSD Popular Annual Financial Report 2021 2
OUTSTANDING DEBT AT YEAR END – ALL FUNDS
Tax Dollars are received for the payment of principal and interest on a voter approved bond issue related to the construction of a new high school and other building renovations. This is not part of the General Fund.
Tax Dollars are received for the payment of principal and interest on one energy conservation project. These payments are included in the General
Fund and not the Debt Service Fund.
Tax dollars are also received for the payment of principal and interest on a stadium capital lease purchase agreement which was funded in February, 2017 for $2,500,000. These payments are included in the General Fund and not the Debt Service Fund.
Outstanding Debt FY21 FY20 FY19 FY18
Bond Payable $5,181,100 $5,962,117 $6,728,134 $7,484,151
Energy Conservation Note 183,541 275,312 367,083 458,854
Stadium Capital Lease Purchase Agreement 1,575,000 1,815,000 2,045,000 2,270,000
# Please refer to the definitions on Page 4 and Page 5.* Includes expenditures for teachers, teaching supplies, teaching equipment, and regular, special and vocational instruction.** Includes expenditures that help teachers.
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.
LLSD Popular Annual Financial Report 2021 3
FIVE - YEAR FORECAST (Cash Basis)
Assets FY21 FY20 FY19 FY18 (shown in thousands)
Cash and Investments** $13,822 $14,837 $16,349 $17,443
Receivables 16,158 14,916 14,743 14,483
Other Assets 333 308 313 328
Total Assets $30,313 $30,061 $31,405 $32,254
Liabilities FY21 FY20 FY19 FY18 (shown in thousands)
Amounts Owed $2,304 $2,539 $2,354 $2,228
to Employees and Vendors
Deferred Inflows of Resources 15,389 13,939 14,069 12,492
Total Liabilities and Deferred Inflows $17,693 $16,478 $16,423 $14,720
Assets over Liabilities and Deferred Inflows $12,620 $13,583 $14,982 $17,534
* * The District has had operating deficits since 2018. This results in a declining cash balance year after year.
FY21 FY22 FY23 FY24 FY25
Beginning Balance $14,912,948 $13,962,952 $13,069,705 $11,203,167 $7,277,204
+ Revenue 24,725,281 24,141,577 24,312,656 23,485,027 22,652,840
- Expenditures (25,675,277) (25,034,824) (26,179,194) (27,410,990) (28,718,070)
Revenue (Deficit) (949,996) (893,247) (1,866,538) (3,925,963) (6,065,230)
Ending Balance without levy renewal 13,962,952 13,069,705 11,203,167 7,277,204 1,211,974
Emergency Levy Renewal * $1,146,802 $2,293,664
The District is forecasting operating deficits. Our current five-year forecast, presented on a cash basis, projects Lakewood Local School will maintain at least a $1.2 million end-of-year cash balance through June 30, 2025. Current operating deficits are quickly depleting cash balances.
* The District has a five year emergency levy whose collections will end in calendar year 2023. The District's plan is to place this emergency
levy renewal on the ballot in November 2022. This line represents the revenue generated from the five year emergency levy renewal.
LLSD Popular Annual Financial Report 2021 4
OUR REVENUES AND RESOURCES FY21:
WHERE THE GENERAL FUND MONEY COMES FROM
OUR REVENUES AND RESOURCES:
DEFINITIONS
LOCAL TAXES are received from both residential and commercial properties and include real and public utility property taxes.
STATE AND FEDERAL REVENUES include formula state aid, homestead/rollback reimbursement, tangible personal property reimbursement
and monies received from both state and federal grants.
TUITION AND FEES are money received from patrons, other school districts, and other sources for education provided in the schools of
the district.
INVESTMENT EARNINGS are interest earned on monies invested by the School District.
OTHER REVENUES are money received which are not classified elsewhere.
62.6%
29.4%
6.3%
1.5%
0.2%
Local Taxes
State & Federal Revenue
Tuition & Fees
Other Revenue
Investment Income
TOTAL
REVENUES:
$24,080
(shown in thousands)
OUR EXPENDITURES AND SERVICES FY21:
WHERE THE MONEY GOES
5 LLSD Popular Annual Financial Report 2021
OUR EXPENDITURES AND SERVICES:
DEFINITIONS
INSTRUCTION is the largest expenditure category and relates to the direct instruction of our students. Students are directly impacted by expenditures from this category.
PUPIL SUPPORT expenditures include all guidance services, health/safety monitors, health aids, nurses, speech, hearing, occupational therapy, physical therapy and psychological services.
INSTRUCTIONAL SUPPORT expenditures include library services, technology integration, curriculum development, staff training and licensed professional development committee.
BOARD/ADMINISTRATION/FISCAL expenditures represent those of the administration and Board of Education’s operation of the
District. Also included in this category is school building secretarial support and financial services, such as payroll, accounts payable and receivable,
auditing, budgeting and reporting and fringe benefits administration.
BUSINESS SUPPORT expenditures include business services such as copier expenditures and courier services.
PLANT OPERATION expenditures relate to the safe and efficient environment of the school including building maintenance, grounds and custodial services.
TRANSPORTATION expenditures relate to providing transportation (mostly by bus) to all students who live in the Lakewood Local School District, consistent with Board of Education policies and the laws of the State of Ohio. On average the bus fleet transports approximately 693 students to Lakewood Local Schools.
CENTRAL SUPPORT expenditures include technology maintenance and computer network maintenance contracts.
EXTRACURRICULAR expenditures account for the salaries, benefits, and supplies for club and athletic related activities.
NON-INSTRUCTIONAL expenditures account for non-instructional services provided to the food service operation.
CAPITAL OUTLAY expenditures account for building and other facility additions and improvements.
DEBT SERVICE expenditures relate to a HB264 energy conservation project principal and interest payments and the principal and interest payments on a stadium capital lease purchase agreement.
TOTAL
EXPENDITURES
& SERVICES:
$25,054
(shown in thousands)
60%
11.4%
8.6%
7.7%
4.8%
Instruction
Board/Fiscal Administration
Plant Operation
Transportation
Pupil Support
3.7%
0.3%
0.2%
Instructional Support
1.5%Extracurricular
1.6%Capital Outlay
Central Support
Non-Instructional
0.1%
0.1%
Business Support
Debt Service
LLSD Popular Annual Financial Report 2021 6
STATE FUNDING
The chart to the right depicts the actual cash receipts for the
District’s General Fund from the State of Ohio. The primary
components of state revenues are unrestricted state aid, consisting
of State Foundation and property tax allocations which include
rollback and homestead payments. Rollback and homestead
payments represent the portion of the local tax bills paid by the
State instead of the local taxpayers. Other State revenue includes
tangible personal property tax loss reimbursement, career tech
weighted aid, economic disadvantaged funding, casino revenues,
special education catastrophic cost reimbursement and Ohio
Bureau of Workers Compensation grant monies.
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0 2021 2020 2019 2018 2017
$68
2
,
1
4
2
$73
0
,
0
2
6
$72
0
,
1
6
9
$73
3
,
2
8
9
SOURCES OF FUNDING: WHERE DOES THE MONEY COME FROM?
LOCAL PROPERTY TAXES
To the right is a graph depicting the amount of cash collections
received by the District’s General Fund and Bond Retirement
Fund from real and public utility property taxes. Lakewood
Local School District is very fortunate and appreciative for
all the support that it receives from the community. Property
taxes provide the largest source of local revenue to operate and
maintain our school and are received from both residential and
commercial properties. The district has two emergency operating
levies, a 10 year levy that was renewed in November, 2019 for
$3,528,880 and a 5 year levy for $2,353,259 that was renewed
in November 2017.
$10,000,000
$9 000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 2021 2020 2019 2018 2017
$80
7
,
0
9
6
$15
,
6
1
0
,
1
7
6
$14
,
7
3
2
,
5
1
7
$14
,
1
0
1
,
4
4
7
$13
,
4
3
0
,
2
4
0
$14
,
1
7
7
,
1
8
2
Operating Levy
Bond Retirement
$4,
9
2
3
,
7
2
3
$4,
6
9
6
,
2
6
9
$5,
2
4
1
,
3
7
6
$5,
3
2
2
,
9
7
5
$5,
7
7
0
,
9
2
1
$1,5
4
4
,
4
5
2
$1,2
5
7
,
2
5
3
$95
7
,
3
0
7
$66
7
,
4
9
7
$42
2
,
9
7
7
$$1,6
1
5
,
7
9
9
1,6
1
5
,
7
9
9
$$1,5
3
7
,
0
6
9
1,5
3
7
,
0
6
9
$$1,4
6
8
,
4
1
8
1,4
6
8
,
4
1
8
$$1,4
9
7
,
4
5
7
1,4
9
7
,
4
5
7
$$1,5
2
5
,
8
3
2
1,5
2
5
,
8
3
2
State Aid
Rollback & Homestead
Other State Revenues
7 LLSD Popular Annual Financial Report 2021
ASSESSED VALUES OF REAL AND PUBLIC UTILITY PROPERTY
Gross Effective Year Length
Type Rate** Rate** Approved Approved
Inside-Operating * 4.60 4.60 N/A Permanent
Voted-Operating * 34.20 15.40 Various Permanent
Emergency 4.20 4.20 2017 5 Year
Emergency 6.40 6.40 2019 10 Year
Bond Retirement 1.70 1.70 1998 28 Year
Total Rates 51.10 32.30 — —
UNBUNDLING THE TAX RATE
Collection Residential/ Commercial/ Public Total Year Agricultural Industrial Utility
2021 $ 399,640,900 $ 121,351,394 $ 38,771,990 $ 559,764,284
2020 329,034,400 113,244,389 36,716,240 478,995,029
2019 322,978,000 112,437,202 31,890,550 467,305,752
2018 320,881,210 110,396,132 30,572,020 461,849,362
2017 294,980,100 103,718,688 29,234,730 427,933,518
2016 292,955,630 102,715,220 27,025,450 422,696,300
* Rates are for the 2020 tax year collected in calendar year 2021.
** The difference between the gross and effective rate is due to tax reduction factors that generally prevent changes in voted taxes when valuation
of existing real property is increased or decreased.
WHERE DOES YOUR REAL ESTATE TAX MONEY GO?
Annual Cost
School $1,009.82
County 244.10
Township 216.99
C-TEC 78.16
Library 23.66
Park District 5.84
Total $1,578.57
Shown below are the 2021 collection year amounts that would be charged to the owner of a $100,000 home in the largest tax district of the District. The graph represents the percentage of each dollar going to each entity. The total of $1,578.57 is the annual amount the owner of a $100,000 home would pay in taxes.WHERE DOES A DOLLAR
OF YOUR
REAL ESTATE
TAX MONEY GO?
63.9%
15.5%
13.7%
5.0%
1.5%
School
County
Township
C-TEC
Library
.4%Park District
In collection year 2021, the District's 2020 triennial update year included on average a 22.67% increase in residential values and a 6.44% increase incommercial/industrial values. New construction for agricultural/residential values included on average a 2.11% increase.
LLSD Popular Annual Financial Report 2021 8
ECONOMIC CONDITION AND OUTLOOK
ENROLLMENT HISTORICAL AND PROJECTED ENROLLMENT
2,500
2,000
1,500
1,000
500
0 2014 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED
1,
8
0
4
1,
9
0
2
1,
8
7
8
1,
8
5
3
1,
8
4
4
1,
6
9
0
1,
6
4
8
1,
6
4
2
1,
6
3
6
1,
6
3
0
1,
6
2
4
The District served 1,690 students during the
2020-21 school year in grades K-12. Enrollment
overall in the District reflects a declining trend.
The District also operates a preschool which
served 40 students and is not included in the
above number. Based on historical trends,
enrollment is projected to continue to decline.
The Lakewood Local School District is currently in good financial condition. The District relies heavily on property tax revenues to
maintain its educational programs. The District has two temporary emergency operating levies. The District’s five year levy was renewed
in November 2017 and the District’s ten year levy was renewed in November 2019. These emergency levies represent approximately
41% of the total tax related revenues for the District. Passing these renewal levies maintains current District operations, allowing
the District to pay for things like salaries, utilities, maintenance and
existing programming. With the passage of these renewal levies and implementing planned reduction of expenditures over the next
couple years, the District will meet its operating expenses through fiscal year 2025. The District implemented a Plan of Reductions for
fiscal year 2021 and additional planned reductions will occur in fiscal years 2022 and beyond. As the District plans for the future, it will
monitor fiscal years 2025 and 2026 to keep the District in a positive fund balance position.
FINANCIAL ACCOMPLISHMENTS
The District received the Certificate of Excellence in Financial
Reporting from the Government Finance Officers Association for the Lakewood Local School District Comprehensive Annual Report
for Fiscal Year ended June 30, 2020. The Certificate of Achievement is the highest form of recognition in governmental accounting
and financial reporting, and its attainment represents a significant accomplishment by a government and its management. This is the
eighteenth consecutive year the District has received this award.
The District received the Award for Outstanding Achievement in Popular Annual Financial Reporting from the Government Finance Officers Association for the Lakewood Local School District Popular
Annual Financial Report (PAFR) for the Fiscal Year ended June 30,
2020. This colorful easy to read document is a useful tool in educating
the public and staff on the revenues and expenditures of the School District. This is the twelfth consecutive year the District has received
this award.
The District completed its initial 5 Year Capital Plan. The 5 Year Capital
Plan will be updated annually. This Plan allows the District to budget intelligently for the future as we are tasked to maintain our schools and
facilities. It incorporates all areas of the District including technology, transportation, food service, building and grounds, athletics and each
of the school buildings. It provides transparency to the District’s plans for the finances necessary to complete these projects.
MAJOR FINANCIAL INITIATIVES
One challenge the District faces when reviewing the five-year forecast is a declining cash balance. As the District approaches the renewal
date for the five-year emergency operating levy, the District will be evaluating the District’s projected financial needs to determine if the
renewal of the five-year emergency operating levy is enough or will the District need to seek additional revenues. The District implemented
a Plan of Reductions for fiscal year 2021 resulting in a savings of $447,619. A Plan of Reductions was also implemented during fiscal
year 2022.
The District has had five unfavorable attempts at the ballot for a new PreK-5 Elementary School bond issue. With the educational challenges
and the physical condition of Hebron Elementary School, the Board of Education and Administration are in support of decommissioning
Hebron Elementary by August 2023. The Hebron Elementary students will be relocated to the Jackson Intermediate buildings and a
modular classroom building. The costs of the decommission and the relocation has yet to be determined.
9 LLSD Popular Annual Financial Report 2021
2020-2021 REPORT CARD PERFORMANCE
The Ohio Department of Education’s (ODE) Ohio School Report
Cards are designed to give each school district a clear picture of
the progress in raising achievement and preparing our students
for their futures. The information provided in the Report Card
outlines areas that ODE views as most critical to successful learning.
The District did not receive an overall rating this year. The 2020-
2021 report card did not have grades or ratings per Ohio Law.
Below is the data received from the 2020-2021 school year.
Achievement Component- This represents the level of proficiency of
students on the state tests. It is made up of two parts: performance
index and indicators met. The District had a Performance Index of
72 out of 120, or 60%. We did not meet any of the Indicators.
Gap Closing- This shows how well we meet performance
expectations for sub-groups of students, such as our students with
disabilities and economically disadvantaged. The District did not
meet the Annual Measurable Objectives (AMOs) in any subgroup
for Reading or Math, but exceeded the AMOs in Graduation Rate
for all subgroups.
Progress- This measures the amount of growth students make from
year to year. This is calculated based on three years of data. The
students made more than expected growth in English Language
Arts at all grade levels. The students also made at or more than
expected growth in Math at 5, 6, 8, Algebra and Geometry.
Students were below expected growth in Math 7.
Improving At-Risk K-3 Reading- There is no component score given.
This component measures our success rate of moving students in
grades K-3 from off-track to on-track from fall to fall. The percentage
of students that increased to on-track was 28%. 72% of students
grades K-3 are on-track based on Fall Diagnostic Assessments.
We use Renaissance STAR assessments to determine student on-
track status and provide individualized Reading Improvement and
Monitoring Plans (RIMPS) for all students who are deemed to be
off-track.
Graduation Rate- This is the percent of students who graduate
that started at LHS, including students who may have moved and
did not enroll elsewhere. Data reflects the graduating classes of
2019 and 2020. There was no component score given. Our
4-year graduation rate is 95.3% and our 5-year graduations rate
is 93.8% as reported with ODE data. This is an increase over last
year and is higher than the state averages. We continue to focus
heavily on finding pathways to gradation for all students despite the
challenging graduation requirements that have been set.
Prepared for Success-This measures whether students are training
in a technical field or preparing for work or college. There was no
component score given. This data reflects the graduating classes
of 2019 and 2020. This measure awards credits for students who
earn remediation-free scores on the ACT for English, reading and
math exams, earn an honors Diploma or earn high marks on an
industry-recognized credentialing test in one of 13 high-demand
career fields. Districts get bonus points for students who achieve
at least one of the above and earn a score of 3 or higher on at
least one AP Exam or earn at least 3 credits in College Credit Plus
(CCP) courses. 25.5% of students participated in the College
Credit Plus program and 14.6% of students took AP courses. 80%
of the AP students earned a 3 or better on their AP exams. 17.2%
of students received Honors Diplomas. 15% of student earned
industry credentials.
PERFORMANCE DATA FROM THE 2020-21 STATE REPORT CARD
Graduation Rate ( 4 year) 95.3%
Student Attendance Rate 90.9%
Class of 2018 Entering College Within 2 Years 47.4%
% Meeting Third Grade Reading Guarantee 99.0%
% of Funds Spent on Classroom Instruction 67.6%
Teachers with Master's Degrees 74.2%
Average Experience of Teachers 18 years
Source: 2020-21 State Report Card.
Lakewood Local School District
Administrative Office
525 East Main Street, P.O. Box 70
Hebron, Ohio 43025
Telephone (740) 928-1928
Facsimile (740) 928-3152
www.lakewoodlocal.k12.oh.us
VISION
LAKEWOOD . . .
• Integrity
• Passion
• Innovation
. . . HOME
MISSION
We are a community of learners inspiring each child to explore, grow, and achieve.