HomeMy WebLinkAboutNewark City School District - Public Financial ReportWe are pleased to present the Newark City School District’sPopularFinancialReport(PAFR)for the year ending June 30,2021.Newark Schools are very fortunate to be part of a community thatsignificantlyvalueseducationandthebettermentofourchildrenandtheirfu-ture.This report makes our District’s finances easier to understand,and com-municates our financial situation in an open and accountable manner.
The PAFR summarizes the financial activities and operating resultsreportedintheNewarkCitySchoolDistrict’s audited ComprehensiveAnnualFinancialReport(CAFR).The PAFR is unaudited and presented onanon-GAAP (Generally Accepted Accounting Principle)basis,whichprimarilydealswithfulldisclosureandsegregatedfunds.The statements pre-sented on page 3 and the pie charts on page 4 consist of the General FundoftheDistrict.General Fund is the largest fund from which mostday-today programs and services are provided.For more detailed financial in-formation,including a discussion of key changes in financial datafromlastfiscalyear,our economic condition and outlook,initiatives andaccomplishments,please refer to a copy of the Comprehensive AnnualFinancialReport,which is available at www.newarkcityschools.us.
The Newark City School District is proud of this report and the supportofferedbytheBoardofEducationinitscreation.Ultimately,we wouldliketothankourcitizensfortheirencouragementincreatingareportdesignedtomoreadequatelyaddresstheirneedsastaxpayers,aswellasfortheopportunitytoservethem.Questions,comments and feedbackregardingthisreportareencouraged,so please do not hesitate to contact theTreasurer's office at (740)670-7010 or at jvalladares@newarkcityschools.org.
Respectfully submitted,
Julio ValladaresTreasurer
Superintendent
Page 2 •Newark City School District
Director ofCertificatedPersonnel
Director ofClassifiedPersonnel&Support Services
Director (s)ofCurriculum&StaffDevelopment
CommunityOutreachCoordiniator
Director ofStudentsServices
SpecialProgramsCoordinator
TreasurerBoardofEducationNEWARKCITYSCHOOLS:ADMINISTRATIVE STRUCTURE AS OF JUNE 30,2021
ADMINISTRATIVE SERVICE CENTER621MOUNTVERNONROADNEWARK,OHIO 43055
TELEPHONE (740)670-7000FACSIMILE(740)670-7047www.newarkcityschools.us
TO THE CITIZENS OF THE NEWARK CITY SCHOOLS,
NEWARK CITY SCHOOL DISTRICT
December 9,2021
The Government Finance Officers Associa-tion of the United States and Canada (GFOA)has given an Award for OutstandingAchievementinPopularAnnualFinancialReportingtotheNewarkCitySchoolsforitsPopularAnnualFinancialReportforthefiscalyearendedJune30,2019.The Award forOutstandingAchievementinPopularAnnualFinancialReportingisaprestigiousnationalawardrecognizingconformancewiththehigh-est standards for preparation of state andlocalgovernmentpopularreports.
In order to receiveanAwardforO u t s t a n d i n gAchievementinPopularAnnualFinancialReporting,a government unitmustpublishaPop-ular Annual Finan-cial Report,whosecontentsconformtoprogramstandardsofcreativity,presen-tation,understand-ability and readerappeal.
AWARD FOR OUTSTANDINGACHIEVEMENTPOPULARANNUALFINANCIALREPORTING
Government Finance Officers Association
Certificate of AchievementforExcellencein Financial Reporting
Presented to
Newark City School DistrictOhio
For its Comprehensive AnnualFinancial ReportFor the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
SUMMARIZED FINANCIAL REPORTS
Resources Taken In(shown inthousands)FY’21 FY’20 FY’19 FY’18Taxes$32,478 $30,649 $30,532 $29,624StateandFederalRevenue$43,011 $42,257 $43,442 $42,267InvestmentIncome$176 $878 $1,032 $495Tuition$2,045 $1,820 $1,812 $1,231Extracurricular$10 $14 $18 $23Miscellaneous$666 $823 $951 $1,102TOTALRevenues&Resources $78,387 $76,442 $77,788 $74,742ServicesProvided(shown inthousands)FY’21 FY’20 FY’19 FY’18Instruction*$51,263 $49,549 $47,943 $46,131PupilSupport$3,118 $3,909 $4,438 $4,262InstructionalSupport**$3,236 $2,259 $2,396 $2,014Administration/Fiscal $6,013 $5,813 $5,709 $5,213BusinessSupport$635 $611 $584 $611PlantOperation$6,510 $6,374 $6,679 $6,184Transportation$3,029 $3,373 $3,339 $3,303Central$1,054 $986 $1,080 $636CapitalQuality$14 -$300 -Debt $161 $161 $161 $56Extracurricular$905 $950 $899 $893TOTALExpenditures&Service $75,937 $73,985 $73,528 $69,303Revenues&Resources OverExpenditures&Services $2,450 $2,457 $4,260 $5,440
REVENUES AND RESOURCES OVER EXPENDITURES AND SERVICES
Popular Annual Financial Report •Page 3
Financial Benefits FY'21 FY'20 FY'19 FY'18CashandInvestments$44.02 $43.96 $41.59 $34.53Receivables$22.58 $27.81 $27.03 $25.94OtherAssets$0.93 $0.21 $0.22 $0.22TotalFinancialBenefits$67.53 $71.98 $68.84 $60.68
BENEFITS OVER DETRIMENTSTheFinancialPositionStatement,known in accounting terms as the balance sheet,reports the benefits (assets)available to provide services.Detriments (liabilities)are the amounts for which the District is obligated to pay in the future.The amount below represents the difference betweenthebenefitsoftheDistrictandthedetrimentswhichitmustpay.The amount provides the net worth of the District.
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 both reports aretakenfromtheDistrict’s Comprehensive Annual Financial Report (CAFR),but are presented in a non-GAAP format.The Comprehensive Annual Financial Report can be obtained from the Treasurer’s office or www.newarkcityschools.us.
Financial Detriments FY'21 FY'20 FY'19 FY'18AmountOwedtoEmployeesandVendors$8.09 $7.60 $7.05 $6.34OtherLiabilities$14.15 $21.18 $21.05 $20.93TotalFinancialDetriments$22.25 $28.79 $28.10 $27.27
Benefits over Detriments $45.28 $43.19 $40.74 $33.41
*Includesexpenditures forteachers,teaching suppliesand teaching equipment.**Includes expendituresthathelpteacherssuchaslibrary expenditures,literacy coordinators,mentorteachersandfunds forteacherdevelopment.Capitaloutlay increasedasthe Districtenteredintoacapitalleaseobligationforcopierequipmentin fiscalyear 2016.Capitaloutlayisreportedfor thepresentvalueofthefuture lease paymentsin theyearofinception.No capitalleaseobligations were enteredintoduringfiscalyears2015,2014,or2013.Debtexpenditures decreasedbetweenfiscal year2014 and2015astheDistrictmadethefinal debtpaymentsona capitalleaseobligationforcomputerequipmentin fiscalyear 2014.
(showninmillions)(shown inmillions)
Page 4 •Newark City School District
INSTRUCTION is the largest expendi-ture category and relates to the di-rect instruction of our students.Students are directly impacted byexpendituresfromthiscategory.PLANT OPERATION expenditures re-late to the safe and efficient environ-ment of the school includingbuildingmaintenance,grounds andcustodialservices.TRANSPORTATION expendituresrelatetoprovidingtransportation(mostly by bus)to all students wholiveintheNewarkCitySchoolDistrictconsistentwithBoardofEducationpoliciesandthelawsoftheStateofOhio.On average the bus fleet trans-ports approximately 2,763 students toNewarkCitySchoolsofwhich324arespecialeducationstudents,140studentstonon-public schools and184studentstocommunityschools.
BOARD/ADMINISTRATION/FISCALcostsrepresentthoseoftheadmin-istration and Board of Education’soperationoftheDistrict.Also in-cluded in this category are schoolbuildingsecretarialsupport,finan-cial services,such as payroll,accounts payable and receivable,auditing,budgeting and reporting,and fringe benefits administration.BUSINESS SUPPORT costs includebusinessservicessuchasriskmanagement,construction man-agement,central warehousing,courier services,and copy expendi-tures.PUPIL SUPPORT areas comprise allguidanceservices,speech,hearing,occupational therapy,physical ther-apy,and psychological services.
INSTRUCTIONAL STAFF SUPPORTcostsincludelibraryservices,men-tor teacher program,technologyintegrationsupport,and literacycollaborativesupport.CENTRAL SUPPORT expendituresincludecommunityrelationsandtechnologymaintenancestaff,computer network maintenancecontracts,district wide postagecosts,and strategic planning typeactivities.EXTRACURRICULAR expendituresaccountforthesalariesandbenefitsofclubadvisorsandathleticcoaches.
OUR REVENUES AND RESOURCES FY21:WHERE THE GENERALFUNDMONEYCOMESFROM
OUR EXPENDITURES AND SERVICES FY21:WHERE THE MONEY GOES
TOTAL REVENUES:$78,377(SHOWN IN THOUSANDS)
TOTAL SERVICES AND EXPENDITURES:$75,937(SHOWN IN THOUSANDS)
TAXES41.40%
STATE ANDFEDERALREVENUE54.90%
INVESTMENT INCOME.20%MISCELLANEOUS.90%
TUITION2.60%
INSTRUCTION67.50%
PUPIL SUPPORT4.10%
MISCELLANEOUS3.60%
INSTRUCTIONAL SUPPORT4.30%
OUR EXPENDITURES AND SERVICES:DEFINITIONS
ADMINISTRATION/FISCAL7.90%
PLANT OPERATION8.60%
TRANSPORTATION4.00%
$
$
2014 2015
27,576,179
30,853,571
$
$
4,619,647
4,831,949
$$
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0 2016
32,900,348
$4,930,025
$
2017
36,068,465
$4,610,274
$
2018
39,151,047
$3,487,496
$
2019
40,441,756
$2,876,140
$
2020
39,630,475
$2,745,329
$
2021
39,681,980
$3,359,834
$
School District Income TaxInMay2007,May 2011 and March 2016 voters reneweda1percentincometaxeffectiveforfiveyears.The OhioDepartmentofTaxationadministersthemonitoring,auditing and collecting of this tax.Years are presentedonaJune30fiscalyear-end basis.
Page 5 •Newark City School District
SOURCES OF FUNDING:WHERE DOES THE MONEY COME FROM?
$
$
2014
24,291,305
$469,663
$
2015
23,900,065
$445,718
$
2016
24,838,545
$478,964
$
2017
24,691,382
451,693
$
$
2018
24,283,032
309,505
$
$
2019
24,884,504
345,648
$
$
2020
25,958,763
453,453
$
$
2021
27,937,232
508,942
$
$
$
$
2014 2015
27,576,179
30,853,571
$
$
4,619,647
4,831,949
$$
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0 2016
32,900,348
$4,930,025
$
2017
36,068,465
$4,610,274
$
2018
39,151,047
$3,487,496
$
2019
40,441,756
$2,876,140
$
2020
39,630,475
$2,745,329
$
2021
39,681,980
$3,359,834
$
PROPERTY TAXESTotherightisagraphdepicting the amount of cashcollectionsreceivedbytheDistrictfromrealandpersonalpropertytaxes.Property taxes provide amajorityofthelocalrevenuetooperateandmaintainourschools.The School District by law is the fiscalagentfortheNewarkPublicLibrary.The Districtcollectsthepropertytaxesnecessarytopaythedebtissuedtoconstructthenewlibrary.Voters approvedthisissueattheNovember1997election.In May 2009thedistrictpasseda7.5 mill five year emergencylevy.Only half of this levy was collected in FY10.OnMay8,2018 this emergency levy was renewed.
STATE FUNDINGThecharttotherightdepicts the actual cash receiptsfortheDistrict’s General Fund from the State of Ohioandtherevenuesdeductedfromourstatepaymentsandsenttocharterschools.The state sends part ofourstaterevenuetocharterschoolstopayforstu-dents from our district attending charter schools.Monies received from the state are critical in runningafiscallysolventschooldistrict.Years are presentedonaJune30Fiscalyear-end basis.
Collection Residential/Commercial/Public TangibleYearAgriculturalIndustrialUtilityPersonal Total2021$726,442,520 $210,089,874 $42,993,230 $0 $983,142,8142020$602,797,630 $208,705,788 $42,993,230 $0 $854,496,6482019$600,643,710 $203,901,734 $40,524,110 $0 $845,069,5542018$600,207,480 $205,842,298 $39,031,530 $0 $845,081,3082017$545,137,180 $195,120,383 $33,848,440 $0*$774,106,0032016$544,397,510 $190,781,080 $34,608,820 $0*$769,787,4102015$548,884,865 $215,109,405 $33,481,090 $0*$797,475,3602014$564,164,560 $211,818,810 $32,917,890 $0*$808,901,2602013$563,381,600 $204,551,500 $30,947,940 $0*$798,881,040
Gross Effective Year LengthTypeRateRateApprovedApprovedInside-Operating*4.10 4.10*N/A PermanentVoted-Operating*23.40 15.90*Various PermanentEmergencyOp.6.10 6.10 2019 10 yearsPermanentImprovement2.90 1.45 2005 PermanentLibraryBond0.63 0.63 1997 25 yearsBuildingBond5.30 5.30 2004 28 yearsTOTALRATES42.43 33.48 ____
UNBUNDLING THE TAX RATE
*Rates are for the 2020 taxyearcollectedintheyear2021.
Shown to the right are the 2020 collection year amounts that would be charged to the owner of a $100,000 home in the largesttaxdistrictofthedistrict.The graph represents the percentage of each dollar going to each entity.The total of $1501.23 is theannualamounttheownerofa$100,000 home would pay in taxes.
WHERE DOES A DOLLAR OF YOUR REAL ESTATE TAX MONEY GO?
School 68.0%
CTEC*5.1%City 7.4%
County 17.3%
*Career and Technology Education Center of Licking County
ASSESSED VALUES OF REAL AND TANGIBLE PERSONAL PROPERTY
Popular Annual Financial Report •Page 6
*Tangible Personal hasbeenphasedout.
Library 1.8%Annual CostSchool $1,037.79County$242.01City$114.69CTEC*$77.49LickingCountyLibrary$23.46LickingParkDistrict$5.79TOTAL$1,501.23
Parks District 0.4%
OUTSTANDING DEBT AT YEAR END —ALL FUNDSThechartbelowcapturestheDistrict’s long-term debt obligations.As fiscal agent for the Newark Public Library,the District passedan.81 mill tax levy in FY98 for facility improvements to the public library.During fiscal year 2006,the District refunded a portion ofthelibrarybondsfor$295,270 in tax savings.In 2004,the District passed a 5.9 mill tax levy for $70 million of debt for the District’sshareoftheOhioSchoolsFacilitiesCommission$131.5 million project.The debt was issued in two installments:$50 million and$20 million.During FY12,the District refunded a portion of the $50 million for $557,144 in tax savings.
During FY 2014 the District had two bank qualified issues of “General Obligation Refunding Bonds.”The delivery date of the firstonewas12/30/2013 for $9,996,354.50.The second issue was delivered on 4/09/2014 for $9,988,113.80.The retired bonds fromthisissuewerefromtheGeneralObligationBondSeries2005,2005A.
During FY2016 the District refunded the 2006 Library Facility Bonds Refunded,the 2005 School Improvement Bonds,and the2005ASchoolImprovementBonds.All of the initial construction bonds have been refunded at least once or twice to obtain the bestpossibleinterestratefortheDistrict’s long term financing.No refunding or new issues are planned in the next fiscal year.
Outstanding Debt FY’21 FY’20 FY’19 FY’18GeneralObligationBonds2006LibraryFacilityBondRefunded----2005 School Improvement Bonds -- --2005ASchool Improvement Bonds -- --2012 School Improvement Refunding Bonds $5,775,000 $7,495,000 $8,545,000 $8,545,0002013SchoolImprovementRefundingBonds$15,000 $4,940,000 $5,834,862 $7,522,8622014SchoolImprovementRefundingBonds$21,709 $8,484,788 $8,554,788 $8,619,7882016RefundingofSeries2005Bonds$18,710,000 $18,710,000 $18,710,000 $18,710,0002016RefundingofSeries2005ABonds$715,000 $1,390,000 $1,490,000 $2,125,0002016RefundingofLibraryRefundingBonds$940,000 $1,395.000 $1,840,000 $2,285,0002021RefundingofSeries2013Bonds$4,852,5962021RefundingofSeries2014Bonds$8,379,267TaxAnticipationNotesWhiteFieldProject--$1,200,000 $1,350,000TotalOutstanding$39,408,572 $42,414,788 $46,177,650 $49,157,650
6,230 6,127
6,253
6,428
6,280
2022
6,406
2023
6,470
6,900
6,800
6,700
6,600
6,500
6,400
6,300
6,200
6,100
6,000 2024
6,534
2025
6,665
2026
6,7986,157
Enrollment in the district has been trendingfairlyflatoverthelastdecade.Some yearsslightlyupthenitdropsbackdown.Thedataprovidedareprojectionsonlynotpredictions.
ENROLLMENT –CURRENT TREND AND MOST LIKELY PROJECTION
*The decrease in enrollment from FY20's(actual)to FY21's (projected)is dueto parents/guardiansoptingfortheirstudentstobeeducatedviaonlineorhomeschooledduetotheCOVID19pandemic.
*
Popular Annual Financial Report •Page 7
NEWARK CITY SCHOOL DISTRICTADMINISTRATIVESERVICECENTER621MOUNTVERNONROAD,NEWARK,OHIO 43055TELEPHONE(740)670-7000 ~FACSIMILE (740)670-7047www.newarkcityschools.us
Mission statementThemissionofNewarkCitySchools is to ensureaqualityeducationforallstudentstobecomeproductivecitizensinaglobalsociety.
Vision statementToaccomplishthemissionofNewarkCity Schools,wewillprovidesuperiorresources,rigorous and relevantprograms,a safe and secure learning environment,and a highly skilled and caring staff in partnership withstudents,parents,and community members.