HomeMy WebLinkAboutLancaster City School District - Public Financial ReportLancaster City Schools
Lancaster City Schools •Lancaster,Ohio
Popular AnnualFinancialReportfortheyearendingJune30,2021
New high school rendering -Construction to begin Summer 2022
We are pleased to present the Lancaster City School District’sPopularAnnualFinancialReport(PAFR)for the year endingJune30,2021.This report makes our District’s finances easier tounderstand,and communicates our financial situation in an open andaccountablemanner.
The PAFR summarizes the financial activities and operating resultsreportedintheLancasterCitySchoolDistrict’s audited AnnualComprehensiveFinancialReport(ACFR).The PAFR is unaudited andpresentedonanon-GAAP (Generally Accepted Accounting Principle)basis,which primarily deals with full disclosure and segregated funds.The statements presented on page 3 and the pie charts on page 4 consistoftheGeneralFundoftheDistrict.General Fund is the largest fund fromwhichmostday-to-day programs and services are provided.For moredetailedfinancialinformation,including a discussion of key changes infinancialdatafromlastfiscalyear,our economic condition and outlook,initiatives and accomplishments,please refer to a copy of theComprehensiveAnnualFinancialReport,which is available atwww.lancaster.k12.oh.us.
The Lancaster City School District is proud of this report and the supportofferedbytheBoardofEducationinitscreation.Ultimately,we would liketothankourcitizensfortheirencouragementincreatingareportdesignedtomoreadequatelyaddresstheirneedsastaxpayers,aswellasfortheopportunitytoservethem.Questions,comments andfeedbackregardingthisreportareencouraged,so please do nothesitatetocontacttheTreasurer's office at (740)687-7315 or atj_taylor@lcsschools.net.Respectfully submitted,
Julie L.TaylorTreasurer
Superintendent
Page 2 •Lancaster City School District
TreasurerBoardofEducationLANCASTERCITYSCHOOLS:ADMINISTRATIVE STRUCTURE AS OF JUNE 30,2021
ADMINISTRATIVE OFFICES345E.MULBERRY STREETLANCASTER,OHIO 43130
TELEPHONE (740)687-7300FACSIMILE(740)687-3430www.lancaster.k12.oh.us
TO THE CITIZENS OF THE LANCASTER CITY SCHOOLS,
LANCASTER CITY SCHOOL DISTRICT
December 15,2021
The Government Finance Officers AssociationoftheUnitedStatesandCanada(GFOA)has given an Award for OutstandingAchievementinPopularAnnualFinancialReportingtotheLancasterCitySchoolsforitsPopularAnnualFinancialReportforthefiscalyearendedJune30,2020.The Award for OutstandingAchievementinPopularAnnualFinancialReportingisaprestigiousnationalaward-recognizing conformance with the higheststandardsforpreparationofstateandlocalgovernmentpopularreports.
In order to receive an Award for OutstandingAchievementinPopularAnnualFinancialReporting,a government unit must publishaPopularAnnualFinancialReport,whose contentsconformtoprogramstandardsofc r e a t i v i t y ,p r e s e n t a t i o n ,understandabilityandreaderappeal.
AWARD FOR OUTSTANDINGACHIEVEMENTPOPULARANNUALFINANCIALREPORTING
Director ofFederalPrograms
Director ofStudentServices
Director ofHumanResources
Director ofSecondaryEducation
Director ofElementaryEducation
DirectorofBusiness
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SUMMARIZED FINANCIAL REPORTS
Resources Taken In(shownin thousands)FY'21 FY'20 FY'19 FY'18Taxes$39,826 $36,674 $33,663 $35,727StateandFederalRevenue$32,367 $31,510 $32,600 $31,875InvestmentIncome$148 $1,803 $1,790 $588Tuition&Fees $1,537 $1,400 $1,334 $1,334Extracurricular$106 $136 $170 $174Miscellaneous$1,201 $1,058 $885 $766TOTALRevenues&Resources^$75,185 $72,581 $70,442 $70,464
Services Provided*(shown inthousands)FY'21 FY'20 FY'19 FY'18Instruction$46,430 $45,100 $42,322 $42,243PupilSupport$3,488 $3,923 $4,719 $4,539InstructionalSupport$2,930 $3,026 $2,688 $2,352Board/Administration/Fiscal $7,389 $7,386 $6,745 $6,585BusinessSupport$354 $335 $343 $333PlantOperation$5,309 $4,972 $5,265 $5,125Transportation$3,071 $2,809 $3,052 $2,975CentralSupport$1,030 $1,145 $1,166 $1,133Extracurricular$1,195 $1,156 $1,153 $1,130CapitalOutlay$25 $69 $36 $25DebtService/Other Non-Instructional $123 $350 $401 $407TOTALExpenditures&Service^$71,344 $70,271 $67,890 $66,847Revenues&Resources OverExpenditures&Services $3,841 $2,310 $3,617 $2,098
REVENUES AND RESOURCESOVEREXPENDITURESANDSERVICES
Popular Annual Financial Report •Page 3
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.
Readers of the Financial Activity Statement and Financial Position Statement should keep in mind that the numbers in bothreportsaretakenfromtheDistrict’s Annual Comprehensive Financial Report (ACFR),but are presented in a non-GAAP format.TheComprehensiveAnnualFinancialReportcanbeobtainedfromtheTreasurer’s office or https:/www.lancaster.k12.oh.us/administration/3.
INSTRUCTION is the largest expenditure categoryandrelatestothedirectinstructionofourstudents.Students are directly impacted byexpendituresfromthiscategory.PUPIL SUPPORT areas comprise all guidanceservices,lunchroom aides,speech,hearing,occupational therapy,physical therapy,andpsychologicalservices.INSTRUCTIONAL SUPPORT costs include libraryservices,technology integration,curriculumdevelopment,instrumental staff training,andaudio-visual services.BOARD/ADMINISTRATION/FISCAL costs representthoseoftheadministrationandBoardofEducation’s operation of the District.Alsoincludedinthiscategoryareschoolbuildingsecretarialsupport,financial services,such aspayroll,accounts payable and receivable,auditing,budgeting and reporting,and fringebenefitsadministration.BUSINESS SUPPORT costs include businessservicessuchasriskmanagement,construction,management,and courier services.PLANT OPERATION expenditures relate to thesafeandefficientenvironmentoftheschoolincludingbuildingmaintenance,grounds andcustodialservices.TRANSPORTATION expenditures relate toprovidingtransportation(mostly by bus)to allstudentswholiveintheLancasterCitySchoolDistrictconsistentwithBoardofEducationpoliciesandthelawsoftheStateofOhio.Onaveragethebusfleettransportsapproximately746studentstoLancasterCitySchoolsand14studentstonon-public schools.CENTRAL SUPPORT expenditures includetechonology,maintenance staff,and computernetworkmaintenancecontracts.EXTRACURRICULAR expenditures account forsalaries,benefits,and supplies for club andathleticrelatedactivities.
OUR EXPENDITURES AND SERVICES:DEFINITIONS
CAPITAL LEASESThechartbelowcapturestheDistrict’s long-term capital lease obligations:Capital Leases FY’21 FY’20 FY’19 FY’18CapitalLeases/Total Outstanding $183,694 $228,164 $223,690 $495,646
*Please refer to the definitions to the right of this chart.^Property taxes decreased in FY19 due to a decrease in the amount available as of fiscal year end duetotimingofthepropertytaxcollectiondatessetbytheCountyAuditor.State and Federal RevenuedecreasedinFY20duetoastatewidereductioninschoolfundingduetotheCOVID-19 pandemic.Instruction expenditures increased in FY20 due to payroll and benefit cost increases and large curriculumsupplypurchases.Investment income decreased in FY21 due to the lower interest rates offered oninvestments.Pupil supportexpenditures decreased in FY21 duetostaff being paid out of Student SuccessandWellnessFunds.
During FY13,the District entered into a four year lease obligation for equipment andaccessoriesnecessaryforimplementationofthe1:1 iPad initiative at Lancaster High School.In FY15,the District entered into a five year lease for new copier equipment.During FY17,the District entered into a four year lease for new chromebooks.
Page 4 •Lancaster City School District
OUR REVENUES AND RESOURCES FY21:WHERE THE GENERAL FUND MONEY COMES FROM
OUR EXPENDITURES AND SERVICES FY21:WHERE THE MONEY GOES
TOTAL REVENUES:$75,185(SHOWN IN THOUSANDS)
TOTAL SERVICES AND EXPENDITURES:$71,344(SHOWN IN THOUSANDS)
TAXES52.97%STATE ANDFEDERALREVENUE43.05%
MISCELLANEOUS 1.60%
TUITION AND FEES 2.04%
INSTRUCTION65.08%
PUPIL SUPPORT 4.89%
CAPITAL OUTLAY 0.04%
EXTRACURRICULAR 1.67%
INSTRUCTIONAL SUPPORT 4.11%
TRANSPORTATION 4.30%
BUSINESS SUPPORT 0.50%
BOARD/ADMINISTRATION/FISCAL 10.36%
PLANT OPERATION7.44%
EXTRACURRICULAR 0.14%
CENTRAL 1.44%
Financial Benefits (shownin millions of$)FY'21 FY'20 FY'19 FY'18CashandInvestments$44.54 $44.39 $43.83 $42.10Receivables$31.33 $30.49 $30.63 $27.74OtherAssets$0.59 $0.46 $0.46 $0.63TotalFinancialBenefits$76.46 $75.34 $74.92 $70.47
BENEFITS OVER DETRIMENTSTheFinancialPositionStatement,known inaccountingtermsasthebalancesheet,reportsthebenefits(assets)available to provideservices.Detriments (liabilities)are the amountsforwhichtheDistrictisobligatedtopayinthefuture.The amount below represents thedifferencebetweenthebenefitsoftheDistrictandthedetrimentswhichitmustpay.TheamountprovidesthenetworthoftheDistrict.
Financial Detriments(shown inmillionsof$)FY'21 FY'20 FY'19 FY'18AmountOwedtoEmployeesandVendors$7.43 $8.15 $7.84 $6.82ShortTermDebt$0.36 $0.06 $0.09 $0.15OtherLiabilities$24.88 $24.68 $24.18 $20.21TotalFinancialDetriments$32.67 $32.89 $32.11 $27.18
Benefits over Detriments $43.79 $42.45 $42.81 $43.29
INVESTMENT INCOME 0.20%
DEBT SERVICES/OTHER NON-INSTRUCTIONAL0.17%
^Receivables increased in FY19dueto an increase in property taxesandincometaxesreceivables.Other Liabilities increased in FY19 due to an increase indeferredpropertytaxrevenuerecognizedintheperiod.Receivables increasedinFY21duetoanincreaseinincometaxesreceivable.Amounts owed toEmployeesandVendorsdecreasedinF21duetotimingofpayments.
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0 2014 2015
$$10,919,272
11,159,854
2013
10,468,860
$
2016
$11,556,995
2016
$12,010,139
$13,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0 2017 2018 2019 2020
$12,010,139
$13,000,000
$12,275,780
$12,875,809
$12,961,759
2021
$14,276,643
$14,000,000
$15,000,000SCHOOLDISTRICTINCOMETAXInNovember2006,voters approved a one and onehalfpercentearnedincometaxeffectivefor10years.The income tax was renewed on a continuous basis inNovember2015.The Ohio Department of Taxationadministersthemonitoring,auditing,and collecting ofthistax.Years are presented on a June 30 fiscal year-end basis.Economic condition and outlook can befoundintheACFR’s transmittal letter.
Page 5 •Lancaster City School District
SOURCES OF FUNDING:WHERE DOES THE MONEY COME FROM?
$26,000,000
$24,000,000
$22,000,000
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$0 2017
$21,950,275
2018
$23,206,832
2019
$20,457,918
2020
$23,367,966
2021
$25,198,674
$25,000,000
$24,000,000
$23,000,000
$22,000,000
$21,000,000
$20,000,000
$0
$26,000,000
$
$
$
$
$
$
27,000,000
28,000,000
29,000,000
30,000,000
31,000,000
32,000,000
2017
$29,592,276
1,523,935
$
2018
1,393,632
$
$30,480,808
2020
1,061,232
$
$30,448,544
2019
1,126,723
$
$31,472,812
2021
1,599,175
$
$30,768,343
PROPERTY TAXESTotherightisagraphdepicting the amount of taxcollectionsleviedbytheDistrictfromrealandpersonalpropertytaxes.Property taxes provide amajorityofthelocalrevenuetooperateandmaintainourschools.Property taxes increased in FY18 due toanincreaseinrealestatepropertyvaluationandcollectionofdeliquenttaxes.Property taxesdecreasedinFY19duetoadecreaseintheamountavailableasoffiscalyearendduetotimingofthepropertytaxcollectiondatessetbytheCountyAuditor.Property taxes decreased in FY19 due to adecreaseintheamountavailableasoffiscalyearendduetotimingofthepropertytaxcollectiondatessetbytheCountyAuditor.
STATE FUNDINGThecharttotherightdepicts the revenue for theDistrict's General Fund from the State of Ohio andtherevenuesdeductedfromourstatepaymentsandsenttocharterschools.The state sends part of ourstaterevenuetocharterschoolstopayforstudentsfromourdistrictattendingcharterschools.Moniesreceivedfromthestatearecriticalinrunningafiscallysolventschooldistrict.Years are presentedonaJune30fiscalyear-end basis.Charter SchoolrevenueincreasedinF21duetoanincreaseinfamiliessearchingforalternateeducationoptionsinresponsetoCOVID-19.
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0 6,403
6,406
6,354
2019 202020172018
6,133
2021
PROJECTED
6,128
2022
6,302
PROJECTED
6,468
2024
PROJECTED
6,468
2023
PROJECTED
6,468
2025
Enrollment projections help the District as it plansforitslong-range facility needs.The District has fluctuated between 6,133 and 6,406overthelastfiveyears.Enrollment is expected toincreaseslightlyoverthenextfiveyears;however,this is based on projections not predictions.
ENROLLMENT –CURRENT TREND AND MOST LIKELY PROJECTION
Collection Residential/Commercial/PublicYearAgriculturalIndustrialUtility Total2021$771,522,750 $258,980,770 $79,625,390 $1,110,128,9102020$765,493,610 $256,363,780 $70,762,830 $1,092,620,2202019$651,189,120 $249,606,860 $62,774,980 $963,570,9602018$645,511,750 $245,633,080 $56,237,600 $947,382,4302017$639,780,840 $252,019,550 $54,517,070 $946,317,4602016$619,442,520 $247,328,750 $51,539,360 $918,310,6302015$617,354,180 $246,263,980 $48,501,740 $912,119,9002014$614,184,870 $252,145,190 $48,977,450 $915,307,5102013$618,293,410 $247,941,310 $48,644,050 $914,878,7702012$616,978,730 $245,316,740 $44,756,650 $907,052,1202011$615,749,980 $240,753,390 $44,246,800*$900,750,170
Gross Effective Year LengthTypeRate**Rate**Approved ApprovedInside-Operating*4.00 4.00*N/A PermanentVoted-Operating*60.60 16.00*Various PermanentVoted-Permanent Improvement*0.50 0.41 2012 PermanentVoted-Bond Retirement*2.80 2.80 2012 37 yearVoted-Bond Retirement*3.70 3.70 2019 37 yearTOTALRATES71.60 26.90 ____
UNBUNDLING THE TAX RATE *Rates are for the 2020 tax yearcollectedintheyear2021.**The difference between thegrossandeffectiverateisduetotaxreductionfactorsthatgenerallypreventchangesinvotedtaxeswhenvaluationofexistingrealpropertyisincreasedordecreased.
Shown to the right are the 2021collectionyearamountsthatwouldbechargedtotheownerofa$100,000 home in the largest taxdistrictofthedistrict.The graphrepresentsthepercentageofeachdollargoingtoeachentity.The totalof$1,530.06 is the annual amounttheownerofa$100,000 homewouldpayintaxes.
WHERE DOES A DOLLAR OF YOUR REAL ESTATE TAX MONEY GO?
School 62%
Library 1%County 23%Annual CostCounty $357.22School$941.97Library$14.33HistoricalParks$10.99City$205.55TOTAL$1,530.06
ASSESSED VALUES OF REAL AND TANGIBLE PERSONAL PROPERTY
Popular Annual Financial Report •Page 6
City 13%
*Increases in assessed values in FY17 are due to an real estate market amd growth as well as trienennial valuation iupdates/
Historical Parks 1%
2020-2021 STATE-ISSUED REPORT CARDStartingwithstatereportcardsforthe2012-13 school year,OhiobegangradingschoolsonanA-Fscale.The A-F system replacedOhio’s previous school ratingsystemthatgaveschoollabelslike“Excellent”and “ContinuousImprovement.”The Ohio SchoolReportCardsnowincludesixmajorcomponents-Achievement,Progress,Gap Closing,GraduationRate,K-3 Literacy and Prepared forSuccess.Beginning with the 2017-18 report card,schools received asingle,official grade that reflectstheiroverallperformance.For moredetailedinformation,go to the OhioDepartmentofEducation’s websiteatwww.ode.state.oh.us.
Popular Annual Financial Report •Page 7
FACILITIES:Through a partnership with the Ohio Facilities ConstructionCommission(OFCC),Lancaster City School District completeda$78.5 million project to construction of five new elementarybuildings.Three buildings opened for fiscal year 2016 and theremainingtwoopenedduringfiscalyear2017.The projectcameinontimeandunderbudget.
The District extended its partnership with the OFCC toconstructtwonewjuniorhighschoolbuildings.The total projecthasnotbeenclosedoutatthistimebutestimatedtobe$55million.The District’s share of the project was funded withoperatingfunds(made possible with the renewal of the incometaxinNovember2015onacontinuingbasis).One junior highopenedinJanuary2020andthesecondoneopenedinAugust2020.
In May 2019,voters approved a 3.7 mill bond issue to constructanewhighschool–the final phase of the District’s facilitymasterplan.The District sold $61M in bonds in April 2020(during the COVID-19 pandemic).Low interest rates savedtaxpayers$41.3M over 37 year term (which was reduced from40years).This project will also be co-funded in partnership withOFCC.The District and OFCC completed a signed ProjectAgreementonDecember1,2021;although the District isapproximately50%through the planning process.FINANCE:Lancaster City School District has received the GovernmentFinanceOfficersAssociation(GFOA)Certificate ofAchievementforExcellenceinFinancialReportingfortwenty-eight years out of the last twenty-nine years (the School Districtdidnotsubmitanapplicationfor1995).The Certificate of
MAJOR INITIATIVES &ACCOMPLISHMENTSAchievement is a prestigious national award recognizingconformancewiththehigheststandardsforpreparationofStateandlocalgovernmentfinancialreports.Lancaster City SchoolDistricthasbeenawardedtheAwardforOutstandingAchievementinPopularAnnualFinancialReporting(PAFR)from GFOA for thelastthirteenyears.In addition,the District was awarded the OhioAuditorofStateAwardwithDistinctionforexcellenceinfinancialreporting.BUILDINGS/DEPARTMENTS:There were a number of specific initiatives and accomplishmentsmadeduringthefiscalyearendedJune30,2021*:•Nearly completed the second stage of architectural design,called Design Development,for the Lancaster High Schoolnewbuildingproject.This provides a set of drawings to theConstructionManageratRisktobeginestimatingtheproject'scost.•Had 8 OCC Buckeye Division champion teams this year andfinishedsecondintheOCCAll-sports award for our division.•Mount Pleasant Elementary Green Gales Club collected over1,000 pounds of caps and worked with the Recycling Center tostoreuntilwearereadytoturntheminforadditionalrecycledfurnitureforourcourtyardarea.•Thomas Ewing Middle School Student Council provided thankyousnackstoallthoseinvolvedinthevaccinationclinicforLCS.*A list of initiative and accomplishments for each building anddepartmentcanbefoundintheACFRtransmittalletterstartingonpagev.
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ADMINISTRATIVE OFFICES345E.MULBERRY STREET,LANCASTER,OHIO 43130TELEPHONE(740)687-7300 ~FACSIMILE (740)687-3430www.lancaster.k12.oh.us
Printing of the PAFR provided by Fairfield Medical Center
Lancaster City Schools,the Place to Be forLearning,Caring,Succeeding
LANCASTER CITY SCHOOL DISTRICT
Tarhe PreschoolGradeKOpenedAugust2015Enrollment:146
Gorsuch West ElementaryGradesK-5OpenedAugust2015Enrollment:530
Medill ElementaryGradesK-5OpenedJanuary2017Enrollment:617
Mt.Pleasant ElementaryGradesK-5OpenedAugust2015Enrollment:538
Tallmadge ElementaryGradesK-5OpenedAugust2016Enrollment:523
Tarhe Trails ElementaryGradesK-5OpenedAugust2015Enrollment:562
General Sherman Junior HighGrades6-8OpenedAugust2020Enrollment:716
Thomas Ewing Junior HighGrades6-8OpenedAugust2015Enrollment:728
Lancaster High SchoolGrades9-12OpenedAugust1963Enrollment:1,773