General Operating Fund Analysis Report for September, 2013 Prepared by: Karen Obratil, Treasurer/CFO October 28,

Monthly Revenue by the Numbers 2 Month of September FY14FY14 Actual ForecastActualto Forecast $ Change% Change General Property Taxes (Real Estate) $875,000$965,548$90, % Tangible Personal Property Taxes 864, ,451 (483,549) % Unrestricted Grants-in-Aid 389, , % Property Tax Allocation % All Other Operating Revenue 250, ,011 19, % Total Revenue 2,378,640 2,006,276 (372,364)-18.56% Other Financing Sources Total Other Financing Sources 325,000345,80120, % TOTAL REVENUE + OTHER FINANCING SOURCES $2,703,640$2,352,077($351,563)-14.95%

Monthly Revenue – September FY14 = $2.4M Forecast = $2.7M 3

FYTD Revenue by the Numbers 4 Fiscal Year to Date - July-September ForecastFY14FY14 Actual EstimateActualsto Forecast $ Change% Change General Property Taxes (Real Estate)$13,349,183$13,389,548$40, % Tangible Personal Property Taxes 864, ,451 (483,549) % Unrestricted Grants-in-Aid 1,168,921 1,167,221 (1,700)-0.15% Property Tax Allocation 82,000 96,083 14, % All Other Operating Revenue 466, ,041 14, % Total Revenue 15,930,415 15,514,344 (416,071)-2.68% Other Financing Sources Total Other Financing Sources415,000450,46135, % TOTAL REVENUE + OTHER FINANCING SOURCES $16,345,415$15,964,805($380,610)-2.38%

FYTD Revenue (July - September) % 89.8% 91.3% 7.91% 86.25% $16,345,415

Monthly Expenditures by the Numbers 6 Month of September FY14FY14 Actual ForecastActualto Forecast $ Change% Change Personnel Services $1,701,348$1,681,400 $19, % Employees' Retirement/Insurance Benefits 700, ,924 6, % Purchased Services 400, ,262 48, % Supplies and Materials 250, ,908 (56,908) % Capital Outlay 20,000 25,089 (5,089) % Other Objects 300, ,630 (21,630) -6.73% TOTAL EXPENDITURES $3,371,348$3,380,213 ($8,865) -0.26%

Monthly Expenditure - September Forecast = $3,371,348 FY14 = $3,380,213 7

FYTD Expenditures by the Numbers 8 ForecastFY14FY14 Actual EstimateActualsto Forecast $ Change% Change Personnel Services $5,290,105$5,224,606$65, % Employees' Retirement/ Insurance Benefits 1,348,000 1,345,866 2, % Purchased Services 1,365,000 1,432,389 (67,389)-4.70% Supplies and Materials 489, ,041 (45,048)-8.42% Capital Outlay 175, ,424 (35,424)-16.83% Other Objects 347, ,769 (23,742)-6.40% Total Expenditures $9,015,125$9,119,095($103,970)-1.14%

FYTD Expenditures (July - September) 9 83% $9,119, %

Bottom Line Cash Balances – 9/30 10 Forecast to FY14 ForecastFY14 Actual$ Change% Change Revenue$16,345,415$15,964,805(380,610)-2.33% Expenditures 9,015,1259,119,095(103,970)-1.15% Excess of Revenue over Expenditures 7,330,290 6,845,710 (484,580)-3.48% Beg. Cash Balance 11,147,833$11,147,833 Ending Cash Balance$18,478,123$17,993,543($484,580) Outstanding P.O.s $5,074,268

Bottom Line - Graphics 11 $9M $9.1M

What’s included in the Financial Forecast? 12

TOTAL REVENUE = $40,726,704 (Excludes Other Financing Sources) 13

Tax Revenue = 70.8% of Total Operating Revenue Line – General Property Tax (Real Estate) 66.6% of Total Operating Revenue Real property is divided into two classes: Class I – Residential and Agricultural Class II – Commercial and Industrial Line – Tangible Personal Property Tax (Public Utility Taxes) 4.2% of Total Operating Revenue 14

Tax Revenue Estimate for FY14 Res/Ag$750,842x = $21,727,720 C/Ind$153,156x = 4,722,922 P/U $25,931x = 1,596,332 Inside Millsx 4.97 = 4,624,378 Tax Revenue estimate = $32,671,352 15

Other Local Revenue = 3.8% of Total Revenue  Interest Earnings on Investments  Tuition (from other districts and kindergarten)  Pay to Participate Fees  School Fees  Rentals  Administrative Fees for Auxiliary Service  Payment In Lieu of Taxes (PILOT)  Miscellaneous 16

State Revenue = 25.4% of Total Revenue Line Unrestricted Grants-in-Aid 11.5% of Total Revenue School Foundation program Line – Restricted Grants-in-Aid Catastrophic Aid for special education students Line – Property Tax Allocation 13.8% of Total Revenue Percentage of individual property tax bills paid by the State 12.5% of taxes due on all residential/agricultural property also includes tangible personal property replacement revenue. 17

Other Financing Sources Line Operational Transfers-in Money transferred from other funds into the General Fund. Line – Advances-in Money returned to the General Fund for repayment of advances from other funds Line – All Other Financing Sources Refunds of prior year expenditures 18

TOTAL EXPENDITURES = $38,887,434 (Excludes Other Financing Uses) 19

Personal Services – Line % of Total Expenditures  Employee Salaries  Classified Substitutes  Supplementals  Overtime  Termination Payments (Severance)  Board Members  Student Workers 20

Employees’ Retirement/Insurance Benefits Line (20.6% of Total Expenditures) Retirement – 14% of employees’ salaries Medicare – 1.45% of employees’ salaries Workers’ Comp rate –  Insurance Premiums  Medical : 94% Single, 88% Family  Dental  Vision  Life – 100%  Board paying 80% for Administrators Unemployment Compensation 21

Board Cost for Insurance Benefits Family Medical (SuperMed+)$1, (renewal 7/14) Dental $ Vision $38.95 Life 4.66 Total Family $1, ($18, annual*) * Monthly premium holidays July and August, Single Medical (SuperMed+) $ Dental $78.21 Vision $15.41 Life 4.66 Total Single $ ($7, annual*) 22

Annual Insurance Costs $4,070,000 MedicalDentalVisionLife $3,552,033 $397,743 $101,504 $18,720 23

Purchased Services – Line % of Total Expenditures Utility Costs (electricity, natural gas, trash removal, telephones, water & sewer) Transportation Services (Petermann) Teacher Substitutes (Rachel Wixey Associates) Legal Fees Health Services (PSI) Professional Meetings Special Education Transportation Special Education Tuition to Other Districts GAAP Conversion Legal Advertisements Repairs & Maintenance (buildings & vehicles) Data Processing (NEONET) and Technology (Smart Solutions) Fleet and Property Insurances 24

Supplies & Materials – Line % of Total Expenditures Core curriculum materials Instructional materials Textbook Replacements Technology supplies and software Custodial supplies Maintenance supplies Fuel Library books Administrative supplies 25

Capital Outlay – Line % of Total Expenditures New Equipment Replacement Equipment Technology Site Improvements Classroom Furnishings Maintenance vehicles Vans 26

Other Objects – Line % of Total Expenditures Summit County Auditor and Treasurer Fees Fees are assessed based on approximately 1.5% of the tax collections. Summit County Land Bank fees Summit County ESC fees Fees for services provided by the Summit County Educational Service Center. Election Costs Delinquent Tax Assessment Fees Fees are approximately.2% of tax collections Liability Insurance State Administrative fees Fees are assessed based approximately 1% of rollback and homestead collections. Professional membership fees Bank fees State Auditor fees 27

HB264 Energy Conservation Project $729, Energy Conservation Improvement Bonds, Series 2013 issued to pay for project on September 11, Bonds purchased by First Merit Bank at 3.39% interest. Interest and principal payments are considered a transfer in the Forecast since this is a general fund debt obligation. The money from the energy savings will be transferred to the bond retirement fund to pay the interest and principal payments in June and December. 28

Other Financing Uses Line – Operational Transfers-Out Money transferred into another fund. Line – Advances-Out Money temporarily advanced to other funds 29

What’s changed since the May 2013 Forecast Update? 30 Nordonia Hills City School District Forecast Comparison ko 10/22/2013 May, 2013 Forecast Submitted to ODE FORECASTED FY2013FY2014FY2015FY2016FY2017 Beginning Balance$6,731,067$10,250,483$11,331,655$9,241,756$5,557,616 Revenue 41,174,416 39,813,224 38,862,240 38,857,307 38,917,052 Expenditures (37,655,000) (38,732,052) (40,952,139) (42,541,447) (44,193,779) Revenue over/(under) Expenditures 3,519,416 1,081,172 (2,089,899) (3,684,140) (5,276,727) Ending Balance$10,250,483$11,331,655$9,241,756$5,557,616$280,889 Proposed October, 2013 Forecast ACTUALFORECASTED FY2013FY2014FY2015FY2016FY2017FY2018 Beginning Balance$6,731,066$11,147,823$13,407,506$13,469,693$11,601,492$7,505,899 Revenue 41,332,112 41,179,983 40,886,029 40,479,990 39,811,906 39,939,530 Expenditures (36,915,355) (38,920,300) (40,823,842) (42,348,191) (43,907,499) (45,452,761) Revenue over/(under) Expenditures 4,416,757 2,259,683 62,187 (1,868,201) (4,095,593) (5,513,231) Ending Balance$11,147,823$13,407,506$13,469,693$11,601,492$7,505,899$1,992,668