5 Year Financial Forecast

5 Year Financial Forecast

Click the link below for the actual Five Year Forecast...the information below the link is an explanation of each line item. Please feel free to contact Mr. Doug Ackermann, Treasurer of Lockland Local Schools for any questions.

http://fyf.oecn.k12.oh.us/genForecast.asp?IRN=44230&Format=HTML

FY 2014
 Lockland Local School District
  Five Year Forecast – Notes

Lockland Local School District is located in southwest Ohio, and is part of Hamilton County. It is 1.23 square miles, with a population of 3,449. Since the year 2000, Lockland’s population has decreased 6.96%. The population growth rate is lower than the state average of + 1.62%, and the national average of + 9.71%. The median resident age is 35.7, where Ohio’s median age is 39.3 years. There are 51.3% males to 48.7% females. Within the population 25 years and older, 71.4% have a high school diploma, 8.6% have bachelor’s degree, and 2.8% having a graduate degree.

Over the years, the most common industry was manufacturing. Unfortunately, some prominent long time businesses have closed. Lockland was the home to Stearns and Foster, a one million square foot building that produced mattresses. General Electric had part of its plant located inside the village until it closed that portion of the plant. The Village of Lockland is working with the Hamilton County Economic Development Office to re-establish Lockland as a thriving opportunity for businesses to locate. Reinhart Foods, Adleta Construction and Rivertown Brewery are a few recent additions. Many other businesses have made Lockland their home with instant access to I-75. When The State of Ohio reclassified Tangible Personal Property Tax to the Commercial Activity Tax, Lockland LSD lost much needed revenue.

Over 40% of the residents are blue-collar workers, earning an estimated $17,250 per year. The median household income is $34,429, well below the state average. The age of most homes in the area is above the state average, and their values are below the state average. Lockland LSD educates many students who are currently on the Federal Free and Reduced Lunch Program. Not to mention, there are many students who must be educated by other districts, due to their special needs.

Lockland LSD works extremely hard at protecting the taxpayer’s money. Certain demands in educating children cause expenditures to rise periodically; therefore, we take our jobs very seriously, in watching your tax dollars, one day at a time.

Revenues
1.010   General Property Tax
Slight increases are hopeful for the coming years as the economy begins to move forward. The Village of Lockland is working diligently with the Hamilton County Economic Development Office attracting developers to invest in the area. While you are always hopeful of an economic recovery, one must realize property valuations have deflated in the last few years. Not to mention, delinquencies are always an unknown variable.
1.020  Tangible Personal Property Tax
With TPP totally phased out as of 2011, the remaining revenue is attributable to Public Utility Personal Property. The local utility has requested a reduction in assessed property value.
1.035  Unrestricted Grants-in-Aid
As of July 2013, the new funding formula is now being instituted. Therefore, Lockland LSD is expecting an increase of revenue from the biennium budget. However, the Lockland LSD is not on a guarantee, and is capped at 6.25% for FY14 and 10.50% for FY15. Casino revenue has helped, but, projected revenue will be down for a period of time as the State tracks casino attendance.
1.040  Restricted Grants
Career Tech funding of $9,450 is being granted to the Lockland LSD for restricted usage.
1.050  Property Tax Allocation
This is the reimbursement received from the State for the 2 ½ % Homestead Exemption and the 10% Rollback Tax. However, HB 59 specifies that there will not be any reimbursements on new levies after July 1, 2013. The State of Ohio is continuing the phase out of TPP, and beginning in 2014 the amount is frozen at 2013 levels.
1.060  All Other Revenue
This includes investment earnings, tuition, local fees and open enrollment. Since ADM is a major factor in state funding, Lockland LSD stresses the value of attracting and retaining students.
                                                                                                                                                                                                                                                                    
2.050 Advances In
These are the return of monies made available to certain funds that did not have enough resources to cover expenditures. The advance is usually paid back the next fiscal year.
2.060 All Other Sources
Refund of Prior Year Expenditure

Expenditures
3.010  Personal Services
There are no salary increases factored into personal services thru FY 2014.
3.020  Retirement/Insurance Benefits
Health premiums increased 0% in FY 2013, while only increasing 5% in FY 2014. There is a SERS catch-up expenditure from previous years of $16,000 per year, which extends from 2013 thru 2016.
3.030  Purchased Services
Tuition and other services for special needs students are reflective of demand. As well, deductions for open enrollment and community schools are posted in purchased services. Being in an older building, utilities and general repair are two of the larger costs centers. Unfortunately, legal expenditures were higher than forecasted for FY 2013, and are being carried into FY 2014 as Lockland LSD finalizes unforeseen circumstances.
3.040  Supplies and Materials
Because of an uncertain financial situation, Lockland LSD is only purchasing supplies and materials on an as needed basis.
3.050  Capital Outlay
Lockland LSD strives to respect the longevity of capital assets, knowing that capital expenditures occur from year to year. FY 2013 capital outlay was reasonable; however, FY 2014 could see an increase as buildings, equipment, machinery and furniture age.
4.055  Principal  -  4.060  Interest and Fiscal Charges
There are no debt payments to be paid from the General Fund.
4.300  Other Objects
This line item encompasses the county auditor and treasurer fees for collecting taxes. Property, casualty and liability insurance expenditures and membership dues are recorded here.
5.010  Operating Transfers
A transfer from the General Fund to other district funds becomes necessary from time to time. The Athletic and Band Funds are primary recipients of such a transfer. Lockland LSD’s Montessori Pre-School will also receive funds this fiscal year.
5.020  Advances Out 
These are monies paid to other funds with an operating deficit. The advance is paid back the next fiscal year.
8.010  Estimated Encumbrances
Encumbrances are financial obligations of the District which have not been expended at fiscal year-end. Encumbrances are projected to remain at the same level for the next fiscal year.
9.030  Budget Reserve
Lockland LSD believes in setting aside money in case unexpected expenditures arise.

Summary
Lockland LSD will end FY 2014 with a positive cash balance. However, FY 2014 projections appear to deplete the balance. While cutting expenditures is always a requirement, we will actively pursue state and federal grants in order to relieve stress off of the General Fund. Our mission is to educate the children of the District with a quality education. Finances can dictate the operational procedures; however, under most circumstances, they provide guidance for the District in order to follow the mission.





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