BIG WALNUT LOCAL SCHOOL DISTRICT- DELAWARE COUNTY SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE FISCAL YEARS ENDED JUNE 30, 2018, 2019 and 2020 ACTUAL FORECASTED FISCAL YEARS ENDING
JUNE 30, 2021 THROUGH JUNE 30, 2025

Forecast Provided By
Big Walnut Local School District Treasurer's Office
Jeremy Buskirk, Treasurer/CFO November 19, 2020

Big Walnut Local School District Delaware County
Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2018, 2019 and 2020 Actual; Forecasted Fiscal Years Ending June 30, 2021 Through 2025

	Actual
		Forecasted
	
	Fiscal Year         Fiscal Year         Fiscal Year 2018                   2019                   2020
	Average Change
	Fiscal Year         Fiscal Year         Fiscal Year         Fiscal Year         Fiscal Year 2021                   2022                   2023                   2024                   2025

Revenues
1.010     General Property Tax (Real Estate) 1.020     Tangible Personal Property
1.030     Income Tax
1.035     Unrestricted State Grants-in-Aid 1.040     Restricted State Grants-in-Aid 1.045     Restricted Federal Funds
1.050     Property Tax Allocation 1.060     All Other Revenues 1.070 Total Revenues

Other Financing Sources 2.010     Proceeds from Sale of Notes
2.020     State Emergency Loans and Advancements (Approved) 2.040     Operating Transfers-In
2.050     Advances-In
2.060     All Other Financing Sources 2.070     Total Other Financing Sources
2.080 Total Revenues and Other Financing Sources

Expenditures 3.010     Personnel Services
3.020     Employees' Retirement/Insurance Benefits 3.030     Purchased Services
3.040     Supplies and Materials 3.050     Capital Outlay
3.060     Intergovernmental Debt Service:
4.010	Principal-All (Historical Only) 4.020	Principal-Notes
4.030	Principal-State Loans
4.040	Principal-State Advancements 4.050	Principal-HB 264 Loans
4.055	Principal-Other
4.060	Interest and Fiscal Charges 4.300     Other Objects
4.500 Total Expenditures

Other Financing Uses 5.010     Operating Transfers-Out 5.020     Advances-Out
5.030     All Other Financing Uses 5.040     Total Other Financing Uses
5.050 Total Expenditures and Other Financing Uses 6.010 Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses

7.010 Cash Balance July 1 - Excluding Proposed Renewal/Replacement and New Levies

7.020 Cash Balance June 30

8.010 Estimated Encumbrances June 30

`	Reservation of Fund Balance
9.010	Textbooks and Instructional Materials 9.020	Capital Improvements
9.030	Budget Reserve 9.040	DPIA
9.045	Fiscal Stabilization 9.050	Debt Service
9.060	Property Tax Advances 9.070	Bus Purchases
9.080	Subtotal
Fund Balance June 30 for Certification of 10.010 Appropriations
	
17,574,730            18,283,805            19,459,483 4,497,858              4,457,625              4,492,567 6,901,674              7,609,785              8,208,628 6,844,308              6,883,850              6,505,464 51,038                  82,077                 176,387
0	0	0 2,442,919              2,575,146              2,690,631 1,657,908              2,179,404              1,838,750
	
5.2% -0.1% 9.1% -2.5% 87.9% 0.0% 4.9% 7.9%
	
21,144,161            22,395,194             22,832,494            23,945,379            24,930,196 4,441,538             4,314,344              4,204,851             4,087,031              3,972,468 7,959,783             8,039,283              8,279,569             8,640,904              9,014,885 6,511,784             6,850,811              6,909,763             7,170,162              7,180,748
94,559                  94,559                  94,559                  94,559                  94,559 0                         0                          0                         0                          0
2,870,291             3,058,649              3,120,618             3,279,891              3,432,143 1,494,136             1,457,723              1,455,029             1,453,885              1,454,148
	
	39,970,435	42,071,692	43,371,910
	4.2%
	44,516,252	46,210,563	46,896,883	48,671,811	50,079,148

-	-	--	-	--	-	--	-	-
159,108	375,379	146,611
	
0.0% 0.0% 0.0% 0.0% 37.5%
	
-	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	-
82,900	12,738	12,738	12,738	12,738
	
	159,108	375,379	146,611
	37.5%
	82,900	12,738	12,738	12,738	12,738
	
	40,129,543	42,447,071	43,518,521
	4.1%
	44,599,152	46,223,301	46,909,621	48,684,549	50,091,886

$22,300,785           $23,102,495           $23,828,519 $10,109,935            11,159,419            12,083,661 $5,600,413              5,492,543              5,530,294 1,074,984              1,052,607                 980,710 436,716                  15,335                      580
-	-	-

-	-	--	-	--	-	--	-	--	-	--	-	--	-	-
$510,312	527,508	558,704
	
3.4% 9.3% -0.6% -4.5%
-96.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6%
	
25,230,318            27,799,882             30,065,750            32,821,938            34,948,528 12,210,482            13,159,719             14,537,204            16,210,516            17,741,782 6,217,453             6,823,513              7,426,500             7,886,642              8,233,833 1,101,464             1,129,317              1,157,902             1,237,239              1,268,547 10,600                  10,000                  10,000                  10,000                  10,000
-	-	-	-	-

-	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	-
624,243	639,338	657,238	677,357	698,080
	
	40,033,145	41,349,907	42,982,468
	3.6%
	45,394,560	49,561,770	53,854,594	58,843,691	62,900,770

$0                          -                 100,000 -                          -                          -$0                          -                          -
	
0.0% 0.0% 0.0%
	
100,000	-	-	-	--	-	-	-	--	-	-	-	-
	
	-	-	100,000
	0.0%
	100,000	-	-	-	-
	
	40,033,145	41,349,907	43,082,468
	3.7%
	45,494,560	49,561,770	53,854,594	58,843,691	62,900,770

96,398	1,097,164	436,053

489.0%

(895,409)	(3,338,469)	(6,944,973)	(10,159,142)	(12,808,884)

9,972,788	10,069,186	11,166,350
	
5.9%
	
11,602,403	10,706,994	7,368,525	423,552	(9,735,590)

	10,069,186	11,166,350	11,602,403
	7.4%
	10,706,994	7,368,525	423,552	(9,735,590)	(22,544,474)

	339,757	280,428	364,730
	6.3%
	372,025	379,465	387,054	394,795	402,691

-	-	--	-	--	-	--	-	--	-	--	-	--	-	--	-	-
-	-	-
	
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0%
	
-	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	--	-	-	-	-
-	-	-	-	-

9,729,429	10,885,922	11,237,673
	
7.6%
	
10,334,970	6,989,060	36,498	(10,130,386)	(22,947,165)

1

Big Walnut Local School District Delaware County
Schedule of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2018, 2019 and 2020 Actual; Forecasted Fiscal Years Ending June 30, 2021 Through 2025

	Actual
		Forecasted
	
	Fiscal Year         Fiscal Year         Fiscal Year 2018                   2019                   2020
	Average Change
	Fiscal Year         Fiscal Year         Fiscal Year         Fiscal Year         Fiscal Year 2021                   2022                   2023                   2024                   2025
	
Revenue from Replacement/Renewal Levies 11.010      Income Tax - Renewal
11.020      Property Tax - Renewal or Replacement

11.300 Cumulative Balance of Replacement/Renewal Levies 12.010 Fund Balance June 30 for Certification of Contracts,
Salary Schedules and Other Obligations

Revenue from New Levies 13.010      Income Tax - New 13.020      Property Tax - New

13.030 Cumulative Balance of New Levies

14.010 Revenue from Future State Advancements

15.010 Unreserved Fund Balance June 30
	
--
	
0.0% 0.0%
	
-                          -                           -                          -                          -$0                       $0                        $0                       $0                        $0
	
	-
	0.0%
	-	-	-	-	-

9,729,429	10,885,922	11,237,673

7.6%

10,334,970	6,989,060	36,498	(10,130,386)	(22,947,165)

0.0% 0.0%
	
-                          -                           -                          -                          --                          -                           -                       $0                        $0
	
	-	-	-
	0.0%
	-	-	-	-	-

0.0%
	
-	-	-	-	-
	
	9,729,429	10,885,922	11,237,673
	7.6%
	10,334,970	6,989,060	36,498	(10,130,386)	(22,947,165)

2

Big Walnut Local School District –Delaware County Notes to the Five Year Forecast General Fund Only

For fiscal year 2021 (July 1, 2020 – June 30, 2021) school districts in Ohio are required to file a five (5) year financial forecasts by November 30, 2020, and May 31, 2021. The five-year forecast includes three years of actual and five years of projected general fund revenues and expenditures. HB166, the new state biennium budget provided new restricted state funding to school districts in Fiscal Years 2020 and 2021 specifically for Student Wellness and Success but regular foundation funding was reduced May 6, 2020 for all school districts for FY20 and FY2. The Student Wellness and Success Fund revenues are restricted and are required to be accounted for in a Special Revenue Fund (Fund 467) and are NOT General Fund revenue and consequently not included in this forecast.

Fiscal year 2021 (July 1, 2020-June 30, 2021) is the first year of the five-year forecast and is considered the baseline year. Our forecast is being updated to reflect the most current economic data available to us for the November 2020 filing.

Economic Outlook
It is prudent in long range forecasting to consider the economic climate that our long-range projection of revenues and expenses are made. State and local resources are under stress as the economy recovers from the COVID-19 Global Pandemic. We have reviewed historical data from the Great Recession of 2008, but there is no recent historic data or similar economic situation to compare to what the district is facing now. The pandemic’s economic impact makes it challenging to project where our finances will be through fiscal year 2025. Data and assumptions noted in this forecast are based on the best and most reliable data available to us as of the date of this forecast.

The state of Ohio provides roughly 50% of all school district funding so the state’s financial health is a stabilizing factor for school district funding. The state of Ohio ended FY20 $1.1 billion or 4.6% under estimated tax revenues and $866 million below actual FY19 tax revenues. Note that $441.5 million of this shortfall was due to the April 15, 2020 state tax filing deadline moved to July 15, 2020. Total state program expenditures ended FY20 $865.1 million under estimated expenses. The state ended in essentially an even position in FY20 and has maintained the $2.7 billion in the Budget Stabilization Fund. Through August 2020 the state of Ohio bottom-line is $389 million better than estimated. Ohio’s economy is recovering along with improving employment.

Due to closures from the COVID-19 pandemic unemployment rates statewide rose rapidly from 4.7% in February to 17.4% in April. Rates have improved to 8.8% in August and are trending lower according to the Ohio Office of Budget and Management. As unemployment rates drop this positively impacts state and local revenues for districts. These indicators suggest the state of Ohio’s overall economy is rebounding and should be able to maintain stable funding through the foundation program through the forecast period.

Forecast Risks and Uncertainty:
In addition to the above noted uncertaintydue to the COVID-19 Pandemic, a five-year financial forecast typically has inherent risks and uncertainties. This is due to normal economic uncertainties and to state legislative changes that will occur in the spring of 2021 and 2023 due to deliberation of the next two (2) state biennium budgets for FY22-23 and FY24-25 which affect this five-year forecast. We have estimated revenues and expenses based on the best data available to us and the laws in effect at this time. The items below give a short description of the current issues and how they may affect our forecast long term:

3

1) Delaware County experienced the reappraisal for the 2017 tax year to be collected in 2018, which increased residential/agricultural, assessed values by $67.6 million or an increase of 10.12%, and an increase of $2.8 million or 4.84% for commercial/industrial values. The changes authorized by HB49 to CAUV values lower Class I agricultural values for counties experiencing a reappraisal of update in Tax Year 2017. Since Delaware County experienced a reappraisal in 2017, these changes essentially took effect immediately and decreased our agricultural assessed valuation by 14.29% compared to Tax Year 2016. It is anticipated this reduction will be mostly offset by HB920 as rates will adjust up if net values for Class I are lower. The cuts in CAUV will shift a larger tax burden to residential taxpayers which may be an unintended consequence of the legislature responding to agricultural interests.

2) The State Budget represents 21.29% of district revenues and is an area of risk to revenue. The future risk comes in FY22 and beyond if the state economy stalls or worsens and the funding formula in future state budgets reduce funding to our district. There are two future State Biennium Budgets covering the period from FY22-23 and FY24-25 in this forecast. Future uncertainty in both the state foundation funding formula and the state’s economy makes this area an elevated risk to district funding long range through FY25. We will adjust the forecast in future years as we have data to help guide this decision.

3) While state funding was initially guaranteed at the FY19 level, the Coronavirus Pandemic caused the most rapid and largest decrease of employment in history. In order to balance the State Budget on May 6, 2020 the Governor ordered a reduction of state foundation funding to school districts by $300.5 million by the end of June 2020. Districts with less local capacity to raise revenue received a smaller percent decrease. Many higher wealth districts saw more than a 6% decrease in state funding resulting in the Ohio legislature to approve HB164 effective June 19, 2020 that ensured no district received a cut to funding more than 6%. The calculation in HB164 included one-time CARES dollars, and the cuts for the basis of FY21 are estimated to be 8.8% less than the FY19 levels. We do not feel that there will be further cuts in FY21 as the economy is rebounding from the sharp drop in employment in March and April 2020 and state tax revenues are rebounding. We believe Ohio’s economy will continue to improve and that FY22-23 we will see approximately one-half of the decrease that the district received in FY21 and then will see funding returned to the FY19 levels in FY24-FY25.

4) HB166 the current state budget for FY20-21 froze funding for all school districts in Ohio at their FY19 level with the only exception being the addition of Enrollment Growth Supplement money for a small number of growing districts. Our district is estimated to receive enrollment growth money for FY20-21 and will treat it as guaranteed in FY22-24. The only increase in funding to all districts in Ohio is restricted use money for Student Wellness and Success which is restricted in use and must be placed in Fund 467 and is not General Fund money and thus not included in the forecast. We have assumed this money will not continue after FY21.

5) HB166 continues the manyprovisions contained in priorstatebiennium budgets that will continue to draw funds away from our district through continuing school choice programs such as College Credit Plus, Community Schools and increases in per pupil scholarship amounts deducted from our state aid in the 2020 and 2021 school years, even though funding for our students was not increased to our district for this biennium budget.	College Credit Plus costs continue to increase as this program becomes more understood. We continue to watch closely the EdChoice Voucher legislation. HB197 passed in March 2020 freezes EdChoice eligibility of 517 buildings for the school year of 2019-2020. The district does not have any school buildings that are designated as underperforming but the measures used by the state could be changed for the future. These are examples of new choice programs that increase with each biennium budget and cost the district money. Expansion or creation of programs such as these exposes the district to new expenditures that are not currently in the forecast. We are monitoring any new threats to our state aid and increased costs very closely.

4

6) The enrollment reporting for the state is very difficult to track. This is another area that we must monitor very closely especially with the increased enrollment that we are expecting from new housing developments.

7) Labor relations in the district have been fairly amicable with all parties working for the best interest of students and realizing the resource challenges the district faces. We believe as the district moves forward a good working relationship will continue.

The major lines of reference for the forecast are noted below in the headings to make it easier to relate the assumptions made for the forecast item and refer back to the forecast. It should be of assistance to the reader to review the assumptions noted below in understanding the overall financial forecast for our district. If you would like further information please feel free to contact Jeremy Buskirk, Treasurer at 740-965-3010.

General Fund Revenue, Expenditure and Ending Cash Balance Actual FY18-20 and Estimated FY21-25 The graph captures in one snapshot the operating scenario facing the district over the next few years.

	

	

	

Act18	Act19	Act20	Est21	Est22	Est23	Est24	Est25

	

GeneralFund Revenue, Expenditures & Cash Balance $70,000,000

$60,000,000

$50,000,000

$40,000,000

$30,000,000

$20,000,000

$10,000,000

$-

$(10,000,000)

$(20,000,000)

$(30,000,000)

Revenue	Expenditures	Ending Bal.

5

Revenue Assumptions

All Revenue Sources General Fund FY21

GeneralFundEstimatedRevenuesFY21$ 44,516,252

Other State 6.45%

Local Sources 78.71%

State Foundation 14.84%

Other Local 3.36%

Real Estate Taxes 47.50%

Income Tax 17.88%

State Sources 21.29%

PUPP Tax 10.47%

Real Estate Value Assumptions – Line # 1.010
The County Auditor, based on new construction, demolitions, BOR/BTA activity and complete reappraisal or updated values, establishes property values each year.

Delaware County went through a reappraisal for the 2017 tax year to be collected in 2018, which included a 10.12% increase in Class I reappraisal and a 4.84% increase for Class II. The Class I reappraisal includes the decreases for CAUV due to the changes in HB49 that took effect in the first year for any county going through either reappraisal or update after the passage of the law. This will cause a shift in taxes from agricultural taxpayers to residential taxpayers and may contribute to lower than anticipated taxes to our district.

There will be a reappraisal update in 2020 for collection in 2021. The district is estimating a 10% increase of values for Class I and a 0% increase in Class II for this update based on initial estimates from Delaware County.

The growth of new construction for homes has increased the district’s valuations each year between the reappraisal in 2017 and the update in 2020. With the growth in the district, we continue to be at the 20 mill floor for the tax rates to be collected in 2017 for our Class I property. When values increase reduction factors are increased and House Bill 920 decreases effective tax rates so the district tax revenues are held harmless, until the effective millage is lowered to 20 mills. No district can collect less than 20 mills if the district voted millage is greater than 20 mills. Only the Class I rates will be at the 20 mill floor with the new values. Since the district is at the 20 mill floor the district will see some increase in the amount that is collected for taxes. The substitute emergency levy is not included in the millage rate for the 20 mill floor.

6

Data captured from the different townships and villages is used to estimate new construction for each collection year for the forecast. These are only estimates based on information provided at this time. The actual increase for new construction in Class I was 32,694,810 and Class II was 6,083,240 for 2019 collection in 2020. This is important in that new construction is taxed at the full voted rate and not subject to the effective millage rates, for the first year of collection, which will increase the estimate for taxes being collected. Due to the downturn in the economyfrom COVID-19 the district is reducingthe new construction estimates for Class I property in collection years 2021 and 2022 to 150 new homes instead of the 200 home, with an increase to 200 new homes for collection in 2023 and a 1% increase in the 2024 collection with a decrease to $20 million in 2025.

The AEP Vassell Substation continues to be a very important section of the Public Utility Personal Property (PUPP) tax valuation for the district. Since the substation was first added to the values in 2016 the district has seen increases and decreases each year in PUPP tax values. The district has been told to expect decreases in PUPP throughout the remainder of the forecast due to depreciation of the power plant equipment of approximately 3% to 3.5% each year. However, in 2019 for collection in 2020 there was a $1.17 million increase instead of the 2% decrease that was expected in the November forecast. Due to new planned housing developments, we believe there will be additions to public utility infrastructure that will compensate for current depreciation, and our projections assume decreases throughout the forecast in this line of 2.0% in fiscal year 2021, 2.25% in fiscal year 2022, and 2.5% in fiscal years 2023 and beyond. The PUPP collections are 50% for each half collection in 2020.

ESTIMATED ASSESSED VALUE (AV) BY COLLECTION YEARS
	Estimated
	Estimated
	Estimated
	Estimated
	Estimated
	
	TAXYEAR2020
	TAXYEAR2021
	TAXYEAR2022
	TAXYEAR2023
	TAXYEAR2024
	
Classification
	COLLECT 2021
	COLLECT 2022
	COLLECT 2023
	COLLECT 2024
	COLLECT 2025
	
Res./Ag.
	$935,877,771
	$954,082,771
	$978,412,771
	$1,061,692,537
	$1,081,522,537
	
Comm./Ind.
	$67,484,950
	$68,309,950
	$69,134,950
	$71,342,649
	$69,959,950
	
Public Utility(PUPP)
	$130,269,645
	$127,338,578
	$124,155,114
	$121,051,236
	$118,024,955
	
TotalAssessedValue
		$1,133,632,366
		$1,149,731,299
		$1,171,702,835
		$1,254,086,422
		$1,269,507,442

Propertytaxlevies areestimated to becollected at 98.14%of the annual amount, which accounts fordelinquencies that occur. Due to economic challenges some residents may encounter, our delinquency rate may increase, but this is somethingwe will need to monitor for the second half propertytax collections. We, also, anticipate 51.45% of the Res/Ag and Comm/Ind property taxes will be collected in the February tax settlement and 48.55% will be collected in the August tax settlement. While we saw a shift from historical trends in 2018 payments, which we believe was due to federal tax law changes, we believe collection splits between first and second half will come back in line with trends.

ESTIMATED REAL ESTATE TAX - Line #1.010
Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Est. PropertyTaxes Line #1.010
	$21,144,161
	$22,395,194
	$22,832,494
	$23,945,379
	$24,930,196

Estimated Tangible Personal Tax & PUPP Taxes – Line#1.020
There was a phase out of TPP taxes beginning in FY06 with HB66 that was adopted in June 2005. TPP tax assessments ended in FY11. The only amounts received after FY11 are from delinquent TPP taxes outstanding as of 2010. Big Walnut does not receive any TPP payments.

The amounts on this line of the forecast consist of Public Utility Personal Property (PUPP) tax payments. The amounts noted below are tax payments from public utilities. The values for PUPP are noted on the estimated assessments table above under Public Utility, which was $132.9 million in assessed values in 2019 collected in 2020 and estimated to be about $130.3 million in assessed value for 2020 collected in 2021. These tax payments

7

are collected at the district’s gross voted millage rate. Collections are typically 50% in February and 50% in August along with the real estate settlements from the county auditor.

ESTIMATED PUBLIC UTILITY PERSONAL TAX – Line 1.020
Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Public UtilityPersonalPropertyTaxes
	$4,441,538
	$4,314,344
	$4,204,851
	$4,087,031
	$3,972,468
	
Est. PUPP Taxes Line 1.020
		$4,441,538
		$4,314,344
		$4,204,851
		$4,087,031
		$3,972,468

School District Income Tax – Line #1.03
The district passed an income tax (SDIT) of .75% effective in 1995, which was approved as a continuing tax in 2003. The amount of growth in income tax is difficult to estimate as most of the information from the Ohio Department of Taxation is confidential. TheDepartment of Taxation has previouslyadvised forincreases between 2.0% and 4.0% for school income taxes. The district has received increases that have out-paced these estimates in the past years, and until the impacts of COVID-19, we believed this trend would have continued without the effects of COVID-19. In FY20, we saw an increase of 7.87% increase over FY19, which might have been even greater, had the SDIT filing date not been changed due to COVID-19 pandemic. The COVID-19 pandemic has changed our projections of a 6.0% growth in FY21 through FY25 to -4% in FY21, 0% increase in, 2% increase in FY23 and a 3.5% increase in FY24 and FY25. In addition, we are estimating growth from new families based on the following assumption: 100 families per year in FY21-FY23 and 90 families per year in FY24 and FY25 with an annual familyincome of approximately $106,000 as estimated data from U.S. Census Bureau, 2013-2017 American Community Survey as compiled by Ohio Municipal Advisory Council OMAC data. This will be something we monitor closely as we plan for the coming years.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
SDIT Collection
	$8,208,628
	$7,959,783
	$8,039,283
	$8,279,569
	$8,640,904
	
Adjustments
	-$248,845
	$79,500
	$240,286
	$361,335
	$373,982
	
Total toLine #1.030
		$7,959,783
		$8,
	039,283
		$
	8,279,569
		$
	8,640,904
		$
	9,014,885

State Foundation Revenue Estimates – Lines #1.035, 1.040 and 1.045
A) Unrestricted State Foundation Revenue & Casino Revenue– Line #1.035
The amounts estimated for state funding are based on HB166 and HB164 following the May 6, 2020 foundation cuts.	Initially state aid funding for all 610 traditional school districts and 49 Joint Vocational and Career Centers was frozen for FY20 & FY21 at the FY19 funding level. The State Foundation Funding Formula used since FY14 was dropped in FY20 after six (6) years. HB305 is currently being considered by the legislature and may produce a successor funding formula for the FY22-23 biennium budget but there is nothing to base future projections on. At this time we are estimating that the amount for FY22-FY23 will be at the FY19 level less approximately ½ of the amount of the reduction that the district received in FY21. We will increase FY-24-FY25 to the FY19 level of funding.

In FY20, the Governor ordered a reduction of state foundation funding by $300.5 million to be reduced from districts bi-monthly payments by the end of June 2020. The reductions were made using an equalized per-pupil approach which resulted in districts with less local capacity to raise revenue to receive smaller percentage decreases. The state-share index that was last calculated in FY19 was used to apportion the FY20 ordered reduction to traditional public-school districts. For Big Walnut, this reduction equated to $935,803 or 14.72% of the basic formula amount. HB164 reimbursed approximately 70 districts that had originally had more than 6% deducted from the state funding reduction in FY20. For the calculation of the 6% cap on funding reductions, one-time federal CARES dollars were included to reduce the original reductions. At this time, the state funding for FY21 is being reduced by approximately $559,878 or 8.8% from the FY19, and this is the same cut received in FY20.

8

Enrollment Growth Supplement: This funding element that was also introduced by Am. Sub. HB 166 for implementation in FY20 is aimed at providing additional funding to school districts that have experienced increased enrollment the past 3 years. The district will receive this funding in FY21 $365,788. At this point, we are hopeful that these funds will not also be taken away and are anticipating these resources to continue.

Supplemental Funding for Student Wellness and Success (Restricted Fund 467)
Nearly all of the new funding for K-12 public education in the FY20-21 Executive Budget is provided through a formula allocating $250 million in FY20 and $358 million in FY21 based upon each district’s percentage of students in households at or below 185% of the Federal Poverty Level (FPL) and the total number of students enrolled in each district. In FY20 proposed funding ranges from $20 per student to $250 per student and in FY21 funding ranges from $25 per student to $300 per student. All schools and students are to receive a minimum additional funding of $25,000 in FY20 and $30,000 in FY21. Our district is to receive $202,324 in FY21. Money will be received twice each year in October and February. These dollars are to be deposited in a Special Revenue Fund 467, which is not included in this forecast, and are restricted to expenses that follow a plan developed in coordination with one of the approved community partner organizations approved in HB166.

Our district added new initiatives to service student needs per our plan as identified in 3317.26 (B) which will be funded in the new Fund 467. These initiatives are a partnership with the Education Service Center of Central Ohio and focus on student mental health and physical wellness. We anticipate that these funds will be discontinued in FY22-25. These new initiatives have been greatly needed to support our students and will need to be picked up by the General fund. Our forecast has accounted for this transition of costs to the General fund for FY22-25.

Future State Budgets:
Our funding status for the FY22-25 will depend on two (2) new state budgets which are unknown. With the change to the state funding and no growth for the FY20-21 state amounts, we had not planned on increases to the state funding for any year of the forecast. As previously noted, we have made adjustments to our state funding based on very recent reduction due to COVID-19 and are estimating future funding with minimal additional guidance at this point. We believe our current state funding estimates for FY20-25 are reasonable and will adjust the forecast in the future when we have authoritative data to work with.

Casino Revenue: On November 3, 2009 Ohio voters passed the Ohio casino ballot issue. This issue allowed for the opening of four (4) casinos one each in Cleveland, Toledo, Columbus and Cincinnati. As of March 4, 2013 all four (4) casinos were open for business and generating Gross Casino Tax Revenues (GCR). Thirty-three percent (33%) of the gross casino revenue is collected as a tax. School districts receive 34% of the 33% GCR that is paid into a student fund at the state level. These funds are distributed to school districts twice a year on the 31st of January and August each year which began for the first time on January 31, 2013.

Due to the COVID-19 closing the casinos in 2020 we are reducing the amount of funding in FY21 by 40% then increasing the amount in FY22 by 25%, FY23 by 32% and 1% in FY24 as we go through the next few years we will adjust as the funding information is available.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Basic Aid-Unrestricted
	$5,790,932
	$6,093,268
	$6,093,268
	$6,343,268
	$6,343,268
	
AdditionalAidItems
	$598,756
	$598,756
	$598,756
	$598,756
	$598,756
	
Basic Aid-UnrestrictedSubtotal
	$
	6,389,688
	$
	6,692,024
	$
	6,692,024
	$
	6,942,024
	$
	6,942,024
	
OhioCasinoCommissionODT
	$122,095
	$158,786
	$217,738
	$228,138
	$238,724
	
TotalLine # 1.035
		$
	6,511,784
		$
	6,850,811
		$
	6,909,763
		$
	7,170,162
		$
	7,180,748

9

B) Restricted State Revenues – Line # 1.040
HB64 continues funding two restricted sources of revenues to school district which are Economic Disadvantaged Funding and Career Technical Education funding. We have incorporated this amount into the restricted aid amount in Line #1.04 forFY21-25. Thedistrict also submitsforcatastrophiccosts, which provides reimbursement for a portion of the extraordinary costs paid for students with special needs.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
EconomicallyDisadvantage Aid
	$13,065
	$13,065
	$13,065
	$13,065
	$13,065
	
Career Tech- Restricted
	$1,494
	$1,494
	$1,494
	$1,494
	$1,494
	
Catestrophic Aid
	$80,000
	$80,000
	$80,000
	$80,000
	$80,000
	
Total Line #1.040
		$94,559
		$94,559
		$94,559
		$94,559
		$94,559

Restricted Federal Grants in Aid – line #1.045
There is no additional restricted federal funding projected in this forecast.

Summary of State Foundation Revenues
SUMMARY
	FY21
	FY22
	FY23
	FY24
	FY25
	
UnrestrictedLine # 1.035
	$6,511,784
	$6,850,811
	$6,909,763
	$7,170,162
	$7,180,748
	
RestrictedLine # 1.040
	$94,559
	$94,559
	$94,559
	$94,559
	$94,559
	
RestrictedFed. Grants Line #1.045
	$0
	$0
	$0
	$0
	$0
	
TotalState FoundationRevenue
	$6,606,3
	43
	$6,945,3
	70
	$7,004,3
	22
	$7,264,7
	21
	$7,275,3
	07

State Taxes Reimbursement/Property Tax Allocation A) Rollback and Homestead Reimbursement
Rollback funds are reimbursements paid to the district from Ohio for tax credits given owner occupied residences equaling 12.5% of the gross property taxes charged residential taxpayers on tax levies passed prior to September 29, 2013. HB59 eliminated the 10% and 2.5% rollback on new levies approved after September 29, 2013 which is the effective date of HB59. HB66 the FY06-07 budget bill previously eliminated 10% rollback on Class II (commercial and industrial) property.

Homestead Exemptions are also credits paid to the district from the state of Ohio for qualified elderly and disabled. In 2007 HB119 expanded the Homestead Exemption for all seniors over age 65 years of age or older or who are disabled regardless of income. Effective September 29, 2013 HB59 changed the requirement for Homestead Exemptions. Individual taxpayers who did not currently have their Homestead Exemption approved or those who did not get a new application approved for tax year 2013, and who become eligible thereafter only receive a Homestead Exemption if they meet the income qualifications. Taxpayers who had their Homestead Exemption as of September 29, 2013 did not lose it going forward and did not have to meet the new income qualification. These changes have slowed the growth of homestead reimbursements to the district, and as with the rollback reimbursements above, increases the taxes collected locally on taxpayers.

b) Tangible Personal Property Reimbursements –
The previous state budget bill HB153 reduced all reimbursements that the district received on TPP replacement dollars for both Fixed Rate and Fixed Sum Levies.

10

Summary of State Tax Reimbursement – Line #1.050
Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
a) RollbackandHomestead
	$2,870,291
	$3,058,649
	$3,120,618
	$3,279,891
	$3,432,143
	
b) TPP Reimbursement - FixedRate
	$0
	$0
	$0
	$0
	$0
	
TotalTaxReimb./Prop. TaxAllocations #1.
	0
	$2,870,2
	91
		$3,058,6
	49
		$3,120,6
	18
		$3,279,8
	91
		$3,432,1
	43

Other Local Revenues – Line #1.060
All other local revenue encompasses any type of revenue that does not fit into the above lines. The main source of revenue in this area is tuition for court placed students, preschool tuition, full-day kindergarten tuition, open enrollment, general rental fees, interest earnings and Medicaid reimbursements.

We anticipate TIF receipts to continue throughout the forecast period with a modest growth rate which is indicative of the past trends. The TIF payments are from the Sunbury Mills Plaza development.

The district is using the October #2 payment report for Open Enrollment and is expecting a ½% increase each year for remaining years of the forecast. We have reduced FY21 interest by 60% and FY22 by another 25% due to the rapid reduction in interest rates to help stimulate the economy due to the COVID-19 pandemic and 10% decrease in FY23 through FY25 for declining balances.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
TIF andPILOTS
	$153,233
	$154,765
	$156,313
	$157,876
	$159,455
	
Tuition
	$565,004
	$570,654
	$576,361
	$582,124
	$587,945
	
OpenEnrollment
	$284,036
	$285,456
	$286,883
	$288,318
	$289,759
	
Interest
	$192,052
	$144,039
	$129,635
	$116,672
	$105,005
	
Class Fees
	$213,053
	$215,184
	$217,335
	$219,509
	$221,704
	
Other Miscellaneous Receipts
	$86,757
	$87,625
	$88,501
	$89,386
	$90,280
	
TotalLine # 1.060
		$1,
	494,136
		$1,
	457,723
		$1,
	455,029
		$1,
	453,885
		$1,
	454,148

Short-TermBorrowing –Lines #2.010 &Line#2.020 –Thereis no additional borrowingplanned in the forecast at this time.

Transfers In / Return of Advances – Line #2.040 & Line #2.050
These are non-operating revenues which are the repayment of short term loans to other funds over the previous fiscal year and reimbursements for expenses received for a previous fiscal year in the current fiscal year. The district does not anticipate any Transfers or Advances during the remainder of the forecast.

All Other Financial Sources – Line #2.060
This funding source is typically a refund of prior year expenditures and one-time payments that are very unpredictable.

The district will receive a BWC for $70,162 in FY21 but does not expect refunds in future years of the forecast. The district is estimating amounts for FY22 through FY25 based on currently received receipts and historical trends for this revenue area without BWC refunds.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
AllOther Sources
	$82,900
	$12,738
	$12,738
	$12,738
	$12,738

11

Expenditures Assumptions

The district’s leadership team is always looking at ways to improve the education of the students whether with changes in curriculum or new technology needs. As the administration of the district constantly reviews expenditures the education of our students is the forefront of decision making.

All Operating Expense Categories - General Fund FY21

GeneralFund Operating Expenditures Est. FY21 $45,394,560

Wages 55.58%

Debt Pmts. 0.00%

Other 1.38%

Capital 0.02%

Materials 2.43%

Services 13.70%

Benefits 26.90%

Wages – Line #3.010
The district evaluates staffing needs with the help of enrollment projections that are based on the study conducted for the district by Future Think. Even though the district continues to see enrollment growth minimal staffing increases have been made recently due to budget pressures. District leadership is currently reviewing staffing needs for both instructional and support roles as we attempt to accommodate anticipated enrollment growth and a focus on supporting the whole child. These staffing increases are being accounted for in the estimated net new hires in our forecast 3.75 in FY21, 29.10 in FY22, 15.50 in FY23, 25.50 in FY24 and 6.05 in FY25. Previously, the planned positions were mainly for staffing we believed were necessary to meet the demands of the new buildings, state or federal requirements for busing and students with special needs. The staffing accounted for in FY22 – FY25 account for returning services and support roles that were reduced in FY20 and FY21 due to budget pressures and uncertainty from COVID-19 as well as additional positions to provide our students with more opportunities and support. These estimates will be adjusted each year with the needs of the educational programs and as actual student information is available. The district will continue to keep a close watch of available resources to evaluate whether additional staffing can be accommodated or if other action will need to be taken. The district approved a contract in the fall of 2019 with BWEA and BWPSS that runs retroactively from July 1, 2019 to June 30, 2021. These agreements provide a 3% increase in wages for each year and modifies the district’s insurance plan design, which will be discussed in the next section. Step increases for current employees are estimated to be 2.6%. The district has a contract with both OAPSE 524 and 696 unions that run from July1, 2020

12

to June 30, 2022, which provide a 1.5% increase in wages for each year. The district is forecasting an increase of 3% growth in Substitutes and Extra Curricular wages during the forecast years.

Summary of Personal Services – Line #3.010
Source
	F
	Y21
	F
	Y22
	F
	Y23
	F
	Y24
	F
	Y25
	
Base Wages
	$22,677,298
	$24,025,595
	$26,553,247
	$28,766,323
	$31,466,446
	
Wage adjustments
		$565,685
		$466,529
		$531,065
		$575,326
		$629,329
	
Steps & Training
	$589,610
	$624,665
	$690,384
	$747,924
	$818,128
	
Growth/Replacement staff
		$395,789
		$1,376,130
		$930,015
		$1,322,180
		$572,102
	
Other
	$200,000
	$200,000
	$200,000
	$200,000
	$200,000
	
Salary In Lieu of Insurance
		$227,231
		$241,319
		$265,451
		$291,996
		$321,196
	
Substututes & Supplemental
	$927,491
	$955,316
	$983,976
	$1,013,495
	$1,043,900
	
Severance
		$50,000
		$50,000
		$50,000
		$50,000
		$50,000
	
Administration
	$0
	$0
	$0
	$0
	$0
	
Staff Reductions (Retire/Resignation)
		($402,786)
		($139,673)
		($138,388)
		($145,307)
		($152,573)
	
TotalWages Line 3.010
		$2
	5,230,31
	8
		$2
	7,799,88
	2
		$3
	0,065,75
	0
		$3
	2,821,93
	8
		$3
	4,948,52
	8

Fringe Benefits Estimates – Line #3.020
A)	STRS/SERS will increase as Wages Increase
As required by law the BOE pays 14% of all employee wages to STRS or SERS. The district is using a blended rate of 15.9% for those that received pick-up on pick-up of the retirement and the additional amount is for the SERS Surcharge which is an additional employer charge based on the salaries of lower-paid members, which is used for SERS insurance upon retirement.

B)	Insurance
As the graph below notes health care is a significant cost for the district and continues to be a real challenge as costs rise. Through the negotiations with the BWEA, administrators and classified support staff, the district made modifications to its medical insurance plan design and implement a high deductible health plan (HDHP), which started in calendar year 2020. This plan change decreased our anticipated premium increase and resulted in slightly lower participation. This has resulted in a lower overall insurance trend percentage for FY20 and FY21 and provided significant savings for the district. In negotiations with our OAPSE Local 524 and 696 unions in the summer of 2020, it was agreed that these individuals would join the HDHP starting in calendar year 2021. These adjustments have caused our anticipated cost of insurance for FY21 to be 4.2%. This is lower than in previous years as more of the staff are enrolled in the high deductible policies and premium caps were increased within the policies. The district is expecting a 6.2% in FY22 and 10.0% for FY23-FY25. This increase is a blend of the districts history of claims increases and the industry standards of annual premium increases.

The Further Consolidated Appropriations Act of 2020, included a full repeal of three taxes originally imposed by the Affordable Care Act (ACA): the 40% Excise Tax on employer-sponsored coverage (a.k.a. “Cadillac Tax”), the Health Insurance Industry Fee (a.k.a. the Health Insurer Tax), and the Medical Device Tax.

C)	Workers Compensation & Unemployment Compensation
The district will move toRetro Group Rating in FY21 for Worker’s Compensation payments, which is anticipated to lower payments in future years. The district for the past two years has had nominal claims for Unemployment, however, due to higher unemployment rates from the COVID-19 pandemic the district is increasing unemployment for part-time staff that are unemployed by their regular employer as the district has to pay for the portion that is equivalent for their salaries at Big Walnut schools.	Therefore, the district is increasing unemployment costs in FY21 to $25,000 with a decrease in FY22 to $10,000 and the remainder of the forecast decreased to $3,000 each year.

13

D)	Medicare
Medicarewill continuetoincreaseat the rate of increases in wages and as new employees arehired. Contributions are 1.45% for all new employees to the district onor after April 1, 1986. These amounts are growing at the general growth rate of wages.

E)	Tuition and Other Benefits
The district implemented an early retirement incentive plan in the spring of 2019, which effected retirements for both FY20 and FY21. This lineaccounts forthe final expenditures forthis plan in FY21. Withthe implementation of the high deductible health plan, the District agreed to make contributions into health savings accounts for employees on the plan, which are also account for in this line in FY21 and FY22. No further payments are being planned for after FY22. These costs will be deceased to the normal tuition reimbursement beginning in FY23 through the remainder of the forecast.

Summary of Fringe Benefits – Line #3.020
Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
STRS/SERS
	$3,941,923
	$4,325,836
	$4,688,249
	$5,113,008
	$5,458,523
	
Insurance's
	$7,487,134
	$8,248,086
	$9,262,886
	$10,471,623
	$11,619,473
	
Workers Comp/Unemployment
	$118,840
	$107,300
	$102,217
	$102,067
	$109,134
	
Medicare
	$365,840
	$403,098
	$435,953
	$475,918
	$506,754
	
TuitionandOther Benefits
	$296,745
	$75,399
	$47,899
	$47,899
	$47,899
	
TotalLine 3.020
		$1
	2,210,482
		$13,
	159,719
		$14,
	537,204
		$16,
	210,516
		$17,
	741,782

Fringe Benefits Costs Actual FY18-20 and Estimated FY21-25

Fringe Benefit Cost FY18 ThroughFY25

$20,000,000

$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

Act18	Act19	Act20	Est21	Est22	Est23	Est24	Est25

14

Purchased Services – Line #3.030
An overall average inflation of 2% is being estimated for this category. CommunitySchool deductions and tuition An overall average inflation of 2% is being estimated for most categories of the forecast. Community School deductions and tuition paid to other districts are the largest unknown costs for the district as these areas are dependent upon the information that is received from other districts and can fluctuate significantly from one year to the next; we are increasing the insurance, leases and other line by $168,335 accounting for actual appropriated servicesthat wereestimated as part of our needs-based budgetingprocess.Municipal leases forstudent technology are forecasted on this line. The District uses the permanent improvement levy funds to pay for buses that had previously been paid as a general fund cost in this line.

Due to COVID-19, we evaluated future years and either reduced or deferred some supports we had hoped to be able to provide for FY21 but have built in increased supports for the remainder of the forecast. In FY21, the district anticipates FTE needs of 0.5 occupational therapist, 0.2 physical therapist and 0.5 speech therapist as contracted services. As a wayto help absorb some of the state reductions, we plan to reduce 4.5 tutoring positions with an increase of $168,335 to account for actual appropriated services that were identified as part of our budgeting process. For FY22, the district is also planning to recode to the general fund from the Student Wellness and Success Fund for 1.0 nurse services and 1.0 mental health specialist as we are not counting on these funds to be renewed with the next state budget. In addition, 1.0 nursing, 1.0 mental health, 0.5 occupational therapy, 1.0 psychologist, 0.5 speech, and 1.0 technology support services are being planned. In FY23, the district is planning on additional FTE supports of 1.0 for athletic coordination, 1.0 for mental health, and 4.0 tutors to be paid through the ESC. For FY24 the district is planning for additional ESC costs for 0.2 adaptive physical education, 0.5 occupational therapy, 0.2 physical therapy, 1.0 technologysupport and 4 tutors. In FY25, 1.0 fornursingservices, 0.5 speech services, and 1.0 tutor supports are planned for in our purchased services.

Phones and Internet Services are increased annually by 2% and will have additional increase in FY21 of $12,180 for the new building and additional internet services.

Utilities are being increased annually by 3%, and we will see increases in FY21 for the new elementary and a partial reduction at Harrison Street as the entire building is not needed for the first year as it is used as an Early Learning Center. In FY23, we will see changes for the new high school being open and bringing the intermediate school off line for a year, and in FY24 we anticipate increases for reopening the intermediate school as an updated elementary school.

Maintenance and repair costs will increase with the changes and additions of the new buildings and have a base increase of 2% each year.

Purchased Services – Line #3.030
Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Insurance,Leases,Postage,& Other
	$771,848
	$787,285
	$803,031
	$819,092
	$835,474
	
ProfessionalServices,LegalFees & ESC
	$2,587,552
	$3,114,323
	$3,447,834
	$3,767,571
	$3,970,862
	
Tuition,OE,SF14,CCP & Excess Costs
	$1,198,919
	$1,222,898
	$1,247,356
	$1,272,303
	$1,297,749
	
CommunitySchoolDeductions
	$482,049
	$491,690
	$501,524
	$511,554
	$521,785
	
Phone andInternet Services
	$89,800
	$91,596
	$93,428
	$95,296
	$97,202
	
Utilities
	$669,100
	$689,173
	$883,248
	$951,745
	$1,022,298
	
BuildingRepairs & Services
	$418,185
	$426,548
	$450,079
	$469,081
	$488,462
	
TotalLine 3.030
	$
	6,217,453
	$
	6,823,513
	$
	7,426,500
	$
	7,886,642
	$
	8,233,833

15

Supplies and Materials – Line #3.040
On average an inflation rate of 3% is being estimated for this category of expenses which are characterized by classroom supplies, textbooks, copy paper, maintenance supplies, materials, and bus fuel. We are anticipating additional costs for educational supplies and maintenance supplies when each of the new schools are opened in FY21, FY23, and FY24.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Supplies,Textbooks,andother
	$519,099
	$529,481
	$540,071
	$580,872
	$592,490
	
Maintenance & TransportationSupplies
	$582,365
	$599,836
	$617,831
	$656,366
	$676,057
	
TotalLine 3.040
		$
	1,101,464
		$
	1,129,317
		$
	1,157,902
		$
	1,237,239
		$
	1,268,547

Equipment – Line # 3.050
The district continues to update its capital projects budget to update the aging bus fleet and replenish or refresh other assets such as roofing, asphalt, computers, desks and chairs that will be paid from the permanent improvement fund or within construction fund for the new buildings.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
CapitalOutlay
	$10,600
	$10,000
	$10,000
	$10,000
	$10,000
	
Technology
	$0
	$0
	$0
	$0
	$0
	
FacilityUpkeep
	$0
	$0
	$0
	$0
	$0
	
Replacement Bus Purchases
	$0
	$0
	$0
	$0
	$0
	
TotalLine 3.050
	$10,6
	00
	$10,0
	00
	$10,0
	00
	$10,0
	00
	$10,0
	00

Principal and Interest Payment – Lines # 4.05 and 4.06
There is no additional borrowing planned in the forecast at this time.

Other Expenses – Line #4.300
The category of Other Expenses consists primarily of Auditor & Treasurer fees, SDIT collection fees and our annual audit and other miscellaneous expenses. The district uses an average increase of 2.8% for the annual increase for this area.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
Auditor & Treasurer Fees
	$380,603
	$392,021
	$403,782
	$415,895
	$428,372
	
CountyESC
	$24,597
	$25,089
	$25,591
	$26,103
	$26,625
	
SDIT TaxCollectionFees
	$119,397
	$120,589
	$124,194
	$129,614
	$135,223
	
Other expenses
	$99,646
	$101,639
	$103,672
	$105,745
	$107,860
	
TotalLine 4.300
	$624,243
	$639,338
	$657,238
	$677,357
	$698,080

Transfers Out/Advances Out – Line #5.010
This account group covers fund to fund transfer and end of year short term loans from the General Fund to other funds until they have received reimbursements and can repay the General Fund. The district is anticipating transferring to the Food Service Fund due to the COVID-19 pandemic in FY21.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
OperatingTransfers Out Line #5.010
	$100,000
	$0
	$0
	$0
	$0
	
Advances Out Line #5.020
	$0
	$0
	$0
	$0
	$0
	
Total
		$100,0
	00
		$0
		$0
		$0
		$0

16

Encumbrances –Line #8.010
These are outstanding purchase orders that have not been approved for payment as the goods were not received in the fiscal year in which they were ordered.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
EstimatedEncumbrances
		$372,025
		$379,465
		$387,054
		$394,795
		$402,691

Operating Expenditures Actual FY18 through FY20 and Estimated FY21 through FY25.
As the graph below indicates the largest expenditure for the district is that of staffing. We are attempting to accommodate the needs of a growing student population with these expenditures, but understand the challenging budgetary constraints we face.

General Fund ExpendituresActual FY18 ThroughEst.FY25

$70,000,000

$60,000,000

$50,000,000

$40,000,000

$30,000,000

$20,000,000
	Other Expenses
Capital

Material

Services

Benefits

Wages

$10,000,000

$0
Act 18	Act 19	Act 20	Est 21	Est 22	Est 23	Est 24	Est 25

Ending Unencumbered Cash Balance – Line#15.010
This amount must not go below $-0- or the district General Fund will violate all Ohio Budgetary Laws. Any multi-year contract which is knowingly signed which results in a negative unencumbered cash balance is a violation of 5705.412, ORC punishable by personal liability of $10,000. While we have been able to shrink the variance between revenues and expenditures from May, we are anticipating with current trends to begin utilizing our cash balance or “rainy day fund” for current year operating needs.

Source
	FY21
	FY22
	FY23
	FY24
	FY25
	
EndingCashBalance
		$10,334,970
		$6,989,060
		$36,498
			(10,130,386)
			(22,947,165)

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True Cash Days
TheGovernment Financial Officers Association (GFOA) recommends, at aminimum, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. Based on the current fund balances the district will not have the sixty (60) day balance at the end of FY22.

EndingCashBalance in True CashDays

89	96	95 100

50

83

51	0

0

(50)

(100)

(150)
Act 18	Act 19	Act 20	Est 21	Est 22

(63)

(133)

Est 23	Est 24	Est 25

CONCLUSION

The Big Walnut Local Schools would like to offer a sincere thank you to the voters for the continued support of our schools with the passage of the 5.45 Mill Substitute Emergency Levy at the April 2020 election. Amidst the challenges of COVID-19, the support of our community is greatly appreciated and of utmost importance. This levy will help to continue opportunities for our students’ education now and in the future.

The district administration notes that this current state biennium budget is why we have to be mindful and watch each state budget carefully as HB166 has not provided new unrestricted operating funds to our district. Future state biennium budgets could affect us positively or negatively for FY22 through FY25, especially with the COVID-19 pandemic reducing state revenues through FY20 and FY21.

The district will receive funding through the CARES Act of approximately $384,350 that is to be used for help due to the COVID-19 pandemic. These funds are restricted in federal grants and are not included in the forecast, however expenditures within our general fund can be offset by the amount of federal dollars. We will monitor this and all other funding that is affecting our forecast from the pandemic.

District administrations appreciates the supportive Big Walnut communityand are activelyplanningfor the future needs of our students while keeping an eye on the financial stability of the district. The administration is mindful that there are many risks and uncertainties that will need to be considered in future planning.

As you read through the notes and review the forecast, remember that the forecast is based on the information that is known at the time that it is prepared.

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