Actual.nd f or@rl.d Op.ndna Fu

r.0 r0 - c.n.ral Prop.rq Tar (R.al Esrar.)r,020 Public Utility Pcrso..l Pmp.rty

r.035 ' Un6rricr.d cnntr.in'Aidl.0,ro - R6t i6.d Gants-in-Aidr.0a5 - Rardd.d F.d.nl 6Errs-in-Aid . SFSF

1.050 - PreD.rty T.r Allft.rlon

t7,20{.?o3 17.535.095 17.689,3963,30r,004 3,156,225 3,t46,735

10,,119,230 10,777,309 11,130,89619,765,215 20.O46p99 23.560,9r r

397375 1,229p5O 1;sq9557,719

,1,070,4f3 ,1071,001 ,1060,785

17,8a8.993 L1,472,O43 18,003,719 17942,431 14.128,,U63,233,2tA 3312,795 3,219,667 3,246,A71 3,2t1,102

11J5r,886 11,68/r,a56 11,920,879 12,t62,961 12,,t10r5321631,204 26,1t793,t 27,712,199 29,\19,149 30.6081111172,131 1,537,50a 1,5tr,50/t 1,587,50rt 1,587.50,i

J,t4t.t6a 2,t5a,2s5 2,a6t,s3t 2,273.60t 2,208,;73

2.010'P@..dt froh 91. otNot s2.020 - Slat Eh.ry...y Lo.N and Adv,nc.hents2.0,t0 ' OpeEtim Tra6f.B-ln

2.050. All oth.r Frn.ncinr Sour(.s

17,725 15,655 t5,tt772,147 18,u82

22.;2a 2o,ooo ,o,o* 2o.oo{ ,o,o*5979 100,000 l0O.O00 t0o,(x,0 100,000

3.010 - P.enn.l s.ryic.s3.020' EnDloyes' Reticm.nt/lnsuran.. B.n€fi r!3,030 Purcna3.d s. ices3.0,t0 - SupDll.! .nd tl.t ri.ls3.050. C.pirl Oud.y3.060 - lnt rrov.mm.nral

4.010 PrircrpalAllY.art,1.020 ' P.inoral Notes4.030 ' Pri.capal .state LoaN{.040 PnnciD.l . Stat€ Adeanc.s/1.050 . Prin.lp.l HB26a Lo.n4.055 Pri..ipal .Oth.r4.060 lnt r.st.nd Fis.al Ch.rxe

30,639,010 30,,q11,,163 30,a72,91a11,000,015 11.076689 12,061,9019,954,179 10.2s6,4a2 9.260,2052,619,450 3,A46,a09 2.413,505113,550 161,369 .ll,t,l7t

5.010 - Op.ntln, Transf.E,Out

5.030 - llI Oth.r Fln.ncinr Us.t

L475,500 868,5@ 2,26a.5d 2:6A.500 2373JOO,*.y ,..y ,r.y ,*.Y too.ooo

Cash Balancc]uly I - Excludinr Propo*d R€n.wal/-R.placement and N€w L.vica

' Esthat€d En.lmbranc€s lune 30

9.010 - T.nboots and lEtn.rDn.t rlat nals9.020 - Capirzl lmprov.m.n15

,,060 ' PbD.rO Td Adhn.e

2,372,622 |,72S,QO 1655,335 r,675100 1675, '0

!675,0@ r.575,OOO 1675,000

R.v fron Repl.em.nt/n€..w.t t .vt.sll.0l0 locoh.f.x . R.n.wat1r.020 Prop.rtyTa - R.newator ReDl...o€nrI I 030' Conulatrv. B3lanc. of R.Dta..n.nt/R.n.wat

13.010- ln.om.Tax - N.w13.020- Prop.riy Tax - .w13,030 CunuhtiE Bala.c. of N.w t vi.t

- R.v..ue fron Futur. stat Adqnam.nrt

32,497302 31,952,221 3/r,35650a 35,05r,€52 35,757,5301,3,46s,225 11,1O7,524 t5,317,29r 167!0,810 18306,3019,386,620 10,133,763 10380339 10,857,02,t t1,379,A272,796,700 3,a06823 3,501.259 ,r,005,,H7 3.731,72061,4,1€1 gaa,tal 558.181 5,r3,t81 ,t69,181

ar,7+8,466 3r,971891 38J58,125 38349,03? 36867238

Lancaster Cify SchoolsFYl6 through FY20

Fiscal ForecastAssumptions -May 2016

General Assumptions

This is a forecast based on the data avaitable at the time ofpreparation. The District is in the first year ofHB64, thebiennium budget for the State of Ohio for FY l6 and FY 17.

Funds included in this forecast are: Ceneral (001) and Education Jobs (504) in Fyl3 only.

Revenues:

General Property Tax

Property values are established each year by the County Auditor based on new construction and complete orupdated values. The most current reappraisal of district property values was for 2013 values collected in calendaryear 2014. The next update ofdistrict properfy values will be for the 2016 values collected in calendar year 2017.

o For 2013 (Reappraisal): Property values for residential/agricultural decreased lyo and Woperty values forcommercial/industrial increased 1.7o/o. Real estate valuation remained relatively flat with an overallincrease of .l loZ.

Fot 2014:. Crowth trends increased .5olo for residential/agriculture and decreased 2.37ocommercial/industrial. Real estate valuation remained relatively flat with an overall decreased .3 I o/o.

For 2015: Growh trends increased .347o for residentiaVagriculture and increased .43yocommercial/industrial. Real estate valuation remained relatively flat with an overall increased.687o.

For 2016 (update): Growth trends are estimated to be relatively flat for residentiauagriculturecommercial/industrial. It is estimated that the reappraisal to increase property values 2oZresidential/a$icultural and increase 2oZ for commercial/industrial.

for

andfor

o For 2017: Growth trends are estimated to be relatively flat for residential/agriculture andcommercial/industrial.

o For 2018: Crowth trends are estimated to be relatively flat for residential/agriculture andcommercial/industrial.

o For 2019 (Reappraisal): Growth trends are estimated to be relatively flat for residentiaUagriculture andcommercial/industrial. It is estimated that the reappraisal to increase property values 4oZ forresidentiaUagricu ltural and increase 4olo for commercial/industrial.

Tangible Personal Property Tar

Lancaster City Schools received an increase in TPP in FYll and FY12 due to the Rocky Pipeline which increasedYaluations by $19.86 million. Enterprise Liquids laid a smaller pipeline for shale liquids along a similar path asRocky (less pipeline running through our District), however, the pipeline is now carrying derivatives that are taxexempt; thus, the District will not receive the estimated $13 million in increased valuation in Tax Year 2015. Wewere expecting a third pipeline, the Bluegrass Pipeline, which was anticipated to increase valuations by $15 millionin Tax Year 2016 however this project and associated capital spending was suspended in May 2014, thus thepipeline's valuation has been removed ffom this forecast. Depreciation of l9lo on the pipelines has been calculated.

Lancaster City SchoolsFY16 through FY20

Fiscal ForecastAssumptions -May 2016

Revenues (continued):

Income Tax

A ten year 1.5% earned income tax went into effective on January 1,2007 and expires December 2016. Overall

collections for FY l6 were 2.8870 more than FYl5. FY l7 through the rest ofthe forecast shows slow steady growth

of 2%o each year. The District renewed the income tax on a continuing basis the fall of20l 5.

Unrestricled Grants in Aid

Historically, basic state funding was based on a full-time equivalency (FTE) count of students, Average Daily

Membership (ADM), during the first full week of October each year. Starting in Fiscal year 2015, a new count

replaced the October count week and was based on the annualized FTE enrollment ofeach student. A student's FTE

wis determined based on the school calendar and their enrollment and withdrawal dates rather than a snapshot ofone week in October. HB59 created a new funding formula calculation report referred to as the School Financepayment Repon (SFPR). Funding is based on how Districts compare to the state as far as Yaluation and income

rather than a per pupil amount as with the previous budget bill.

Details on the funding mechanism are available on the Ohio Department of Education's website

(www.education.ohio. gov).

Lancaster City Schools is not fully funded on the SFPR; therefore, the District is set to receive any cap increases that

are approved per the biennial budget bills.

FYl6 - FYlT: Funding per HB64 is set to inoease 7.5o4 each fiscal year.

FYl8 - FY20: Funding is anticipated to increase 57o each fiscal year.

*Funded ADM includes community school students however a deduction for community schools will be taken

within the expenditures.

Due to the closure of the two sponsored community schools, the Disrict received their cash balances which were

made up of state foundation revenue (FYl5: $631,134 LDA: FY l6: $50,000 LFCS).

Casino revenue was received starting in FY l3. Revenue allocations from the casino tax are intended to supplement

current state aid to schools districts. It is not supposed to supplant. This is not a guarantee that supplanting will not

occur in the future. The amount calculated for Lancaster City Schools is $51 per student based on October

enrollment and held flat ihrough the forecast.

Reslricted Grants in Aid

The Education Jobs Fund (Ed Jobs - Fund 504) was included as part of federal legislation that passed August 10,

2010. The program provided $10 billion for states to save or create education jobs for the 2010-201I school year;

however Diiniits hai until September 30,2012 to spend down the funds. Lancaster City Schools chose to spend

most of the $950,000 allocation on all day everyday kindergarten and a part-time English as a Second Language

teacher in FYl2. This funding is not expected past FYl2; however some revenue was received in FYl3 as we

requested reimbursement for summer payroll.

Starting in FYl4, state funds generated by the economically disadvantaged student aid component of the new

school-funding formula (HB59) must be reported as restricted. Funding must be sPent towards an extended school

day and school year, reading improvement and intervention, instructional technology or blended leaming,

professional development in reading instruction for teachers ofstudents in kindergarten through third grade, dropout

prevention, school safety and security measures, community leaming centers that address barriers to leaming, and/or

academic interventions for students in any of grades six through twelve.

2

Lancaster City SchoolsFYl6 through FY20

Fiscal ForecastAssumptions - May 2016

Revenues (continued):

Career Tech or vocational program funding, as well as catastrophic special education payments, are also classified

as restricted grants and are expected to remain flat.

Property Tax Allocation

Rollback and homestead reimbursements fiom the State of Ohio are categorized in this line' Rollback and

homestead reimbursem€nts will generally grow with new construction, reappraisals' updates and-new levies ln

years when replacement and renewal leviis go offthe tax duplicate, revenues in this category will fall.

Tangible Personal Property Ta.x (TPP) direct reimbursements from the state of ohio are also categorized here HB

i,,t? ZOTOiZOT r biennium budget bili, extended the period before the phase-down ofthe replacement payments for

the loss ofrpp to school districts ueian. Hers: Qol2l2ol3) phased out HB66 payments from the stale at a faster

,ut., not to exceed 2o/o of District's iotut ZOtO revinues, until ihe funds are eliminated Approximately half of all

Ohio school districts lost all oftheir reimbursements in iyt2 and FY 13. With the current budget bill, HB64' direct

ipi puy**o will once again be phased our. our District.will .receive approximately half of the allocation we

."..ii.d t^t y"u, (sl.gmilli'on x %) in fiscal year20l6. No allocations will be received beyond FYl6.

All Other Revenues

The largest revenue items in this category are as follows:

. Tuition and open enrollment for students from other districts'

o lnterest income.. Pay-to-participate fees for athletics, fine at1s, and clubs'

. Rental Income from Board owned property'

o ln Lieu ofTaxes Payments.o CAFS/Medicaidreimbursements'. E-rate revenues

Expenditures:

\Ep:Fiscalyeatzll6expendituresarebasedonthePermanentAppropriationMeasureapprovedinSeptember's"":or.r""b.ii" fo. details of our expenditures in the Fyl6 Budget Document.

Through the ohio School Faci|ities Commission, the School District will receive approximately $28 million in state

money to construct five ""* "1";;;;;;-;;;ijing, to ,"ptu." the existing eight elementary buildings- Voters

approved a 4.1 mill bond i*r. ;; Ni;;;'t i, ioizl n"or"i"g eight older smaller elementary schools to five new

larger schools, the Sct oot oistrict t aa toiealstri"t uno it is toJ early to determine any future savings or expenditures

related to the consotiaution. w. ur.-Jur"."ntty i^ pt'*" rr. Three elementary schools in Phase II opened this fall'

Personal Services

Fy l6 budget includes average raises lolo and average step increases of I .570. (26 pays) ira. rh'r' we" 25 Pavs in rY r l )

FY l7 budget includes average rarses I 5% and aveiage siep increases of I '5%' (2'1 pays)

FY l8 budget includes average ratses 07o and average step increases of I 5o/o' (26 pays)

FYlg budget includes average rarses 0%o and average step increases of l 5olo (26 pays)

FY20 budget includes average raises 0%o and average step increases of I 5o/o' (26 pays)

Additiona|personnelhavebeenaddedinfiscalyears2018-2020toabsorbanyadditionalstaffingneededtomeetclass size/siecial education/curriculum requirements'

Lancaster City SchoolsFYl6 through FY20

Fiscal ForecastAssumptions -May 2016

Expenditures (continued):

Employees Retirement/Insurance Benefits

The largest expenditures in this category are employee health insurance, employee retirement system payments andworkers compensation.

Employee health insurance premiums increased 5.57o in FYl6.Estimates going forward are: FYlS: l4%o; FY19: l5%; FY20:month insurance holiday in December 2012. 2013 and 2014.equivalent to 5500,000 for the District's General Fund. DentalFYI6.

Health insurance rates will increase 6Yo for FY17.l5%. The District/employees were gmnted a oneA one month health insurance premium holiday isinsurance increased 5.9% for FYl5 and 8.67% for

Purchased Services

The expenditures in this category include, but are not limited to: all district utilities, maintenance and repairs, charterschool payments, tuition, open enrollment, postage, and data processing services. Inflation in purchase services hasbeen set at l07o each fiscal year.

This line item decreased in FYl5 due a change in staff hired via purchased services fiom Fairfield Medical Centerfor occupational and physical therapy becoming District employees due to changes in the retirement system.

Community school payments and open enrollment payments make up the majority ofthis line item.

As part of our technology plan (July l, 2012 June 30, 2015) the District purchased iPads for high schools in theway of a $261 ,700lyear four year lease purchase agreement with payments beginning July I 5, 201 3.

Supplies and Materials

The expenditures in this category include, but are not limited to: instructional and office supplies, fuel, librarybooks, textbooks, and equipment valued less than $5,000 which do not meet our capitalization criteria. An annualincrease of 30lo has been applied to this line item for inflation.

Textbooks, the largest expenditure out of this category, are purchased on a cycle and fluctuate between fiscal yearsdepending on the subject. FY14 expenditures represent two year's textbook cycles due to timing ofpayments. TheDistrict postponed the adoption oftextbooks in FY l5 but resumed adoptions in Fyl6.

A Capital Plan was devised and has been rolled into this forecast. Operational supplies and materials expendituresare included in this line item.

Capital Outlay

Expenditures in this category are for building improvements and capital assets valued over $5,000. A Capital Planwas devised and has been rolled into this forecasl. Operational capital expenditures are included in this line item.Investment in a new career tech program or upgrades in current programs explains the large increase in FY 17.

Other Objects

Expenditures in this category include audit fees, propeny tax collection fees, income tax collection fees, anddues/memberships. An annual increase of670 has been applied to this line item for inflation.

4

Lancaster City SchoolsFYl6 through FY20

Fiscal ForecastAssumptions -May 2016

Other Financing Options

A Capital Plan was been devised and has been rolled into this forecast. It is broken down into three categories that

are funded by the conesponding fund: Operating (Ceneral Fund), Permanent Improvements (Permanent

Improvement Fund), and Capital Projects (Capital Projects Fund). Operating expenditures are shown wirhin the

appropriate categories of the forecast. Permanent Improvement expenditures are funded annually via a transfer.

Capital Projects expenditures have been funded upfiont for years FY l6-FY2 I via a transfer in FY 16.

With the passage of the income tax levy, the District has commined, in partnership with the Ohio Facilities

Construction Commission, to building two new junior high schools without increasing taxes. Bonds will be sold in

2016 and payments will be made from the General Fund over 23 years via transfers to a bond retirement fund.

Payments are slated to begin in FY 18.

Other transfers include covering the deficit of the TV Station, populating the Board Service Fund, and replenishing

the Severance Fund.

Advances Out is to cover deficits that may exist in any state or federal grant funds at fiscal year end.

5