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District shows expenditures down and revenues up

By TIM TROGLEN Reporter Published: June 18, 2017 12:00 AM

HUDSON -- The latest five-year forecast update showed that while state funding is still unsure, the local district can stay within its budget and be successful.

By law, the forecast must be filed by the end of October each year and updated by the end of May.

The forecast was presented last month by Treasurer Kathryn Sines and unanimously passed by the Board. The update, mandated by law, was of the October 2016 forecast which showed the district in sound financial shape through 2021. The forecast was sent to the state after passage.

The forecast is only on general fund money which accounts for about 70 percent of all of the district's finances, according to Sines.

The numbers showed real estate revenue, which is the district's largest revenue source, up .12 percent, or $70,750 of what was projected in October.

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Salaries and benefits make up about 80 percent of the district's expenditures, Sines said.

"They are lower than projected," Sines told the Board of Education.

Expenditures came in at $1.6 million or 1.69 percent lower than projected.

"We continue to look at every expenditure," Sines said. "All departments and building budgets have stayed at or below budgeted amounts which is evident by these numbers."

The cash balance reflected the higher revenues and lower expenditures, coming in at $1.7 million or 3.59 percent higher than projected.

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Sines said the district has worked hard to keep expenditures down but must continue to watch state legislatures and work to keep spending down.

The October forecast projected revenues will decrease by 0.5 percent annually.

By 2021, revenue is forecast to be $59.91 million, with expenditures at $68.92 million.

However, due to carryover balances and reserved funds, the numbers show a positive ending balance each year through 2021, which is projected to finish with an ending balance of $8.63 million.

By 2021, real estate will make up 70.9 percent of revenues, with 16.8 percent coming from state funding.

Sines has called the forecast a living document which is always changing.

"The district will continue to make sound budget decisions and proactive financial recommendations," Sines summarized. "Each year the district will review spending and adjust decisions to help ensure ongoing stability."

The district also was helped May 2 when voters approved Issue 13, a, a continuation of the current 1.5 mill Permanent Improvement Fund.

The PIF, which was not a new tax, will generate about $1.38 million a year, according to the Summit County Fiscal Office.

No future levies were projected in the current forecast.

Email: ttroglen@recordpub.com

Phone: 330-541-9435

Twitter: @Trog_RPC


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