Five Year Forecast Financial Report

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1

Five Year Forecast

Financial Report

November 2021

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Forecast Methodology - This forecast is prepared based upon historical trends and current factors. This information is then extrapolated into estimates for subsequent years. The forecast variables can change multiple times throughout the fiscal year and while cash flow monitoring helps to identify unexpected variances no process is guaranteed. The intent is to provide the district's financial trend over time and a roadmap for decisions aimed at encouraging

Forecast Purpose/Objectives

To serve as a basis for determining the school district's ability to sign the certificate required by O.R.C. §5705.412, commonly known as the "412 certificate."

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Note: Cash balance includes any existing levy modeled as renewed during the forecast. Cash balance is not reduced for encumbrances.

Financial Forecast

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

2021 2022 2023 2024 2025

Beginning Balance 14,699,035 9,210,600 3,425,177 (3,305,839) (12,108,343)

+ Revenue 52,908,444 54,292,301 56,006,446 56,600,046 57,285,257 + Proposed Renew/Replacement Levies - - - - -+ Proposed New Levies - - - - -- Expenditures (58,396,879) (60,077,723) (62,737,463) (65,402,550) (68,209,844)

Ending Balance with renewal levies 9,210,600 3,425,177 (3,305,839) (12,108,343) (23,032,930)

Note: Not Reduced for Encumbrances Analysis Without Renewal Levies Included:

Revenue Surplus or Deficit w/o Levies (5,488,435) (5,785,422) (6,731,017) (8,802,504) (10,924,587)

Ending Balance w/o Levies 9,210,600 3,425,177 (3,305,839) (12,108,343) (23,032,930)

3 The District has accumulated cash reserves since the passage of the 6.20 mill levy in 2016. The cash reserves are being utilized in FY 2021 and FY 2022 to maintain current programs and services, along with addressing the cost of reopening during the pandemic.

(6,731,017)

In FY 2021 a revenue shortfall is expected. This means that expenditures are expected to be greater than revenue by $5,488,435 in FY 2021. By the last year of the forecast, FY 2025, the district is expected to have a revenue shortfall where expenditures are projected to be greater than revenue by $10,924,587 The district would need to cut its FY 2025 projected expenses by 19.07% in order to balance its budget without additional revenue.

(10,924,587)

The Board of Education is beginning a process in November 2021 to evaluate current revenues and expenditures to determine the decisions necessary to achieve financial stability beyond June 30, 2022. Any combination of additional revenue or expenditure reductions would need to be accomplished in calendar year 2021 to balance the forecast for FY 2023 and beyond.

= Revenue Surplus or Deficit (5,488,435) (5,785,422) (8,802,504) -- -- -- -- -- --

-(23,032,930)

-$40,000,000 -$20,000,000 $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000

2020 Actual 2021 Projected 2022 Projected 2023 Projected 2024 Projected 2025 Projected

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Revenue Sources and Forecast Year-Over-Year Projected Overview

Projected RevenueRenewal Levy Revenue

2015 $0 2016 $41,718,136 2017 $45,235,721 2018 $50,977,538 2019 $52,347,551 2020 $52,301,657 2021 $52,908,444 $0 2022 $54,292,301 $0 2023 $56,006,446 $0 2024 $56,600,046 $0 2025 $57,285,257 $0

3-Year Historical Actual Average Annual Dollar Change Compared to 5-Year Projected

Historical Projected Projected

Average Average Compared to

Annual Annual Historical

$$ Change $$ Change Variance

Real Estate $1,670,162 $881,235 ($788,927)

Public Utility $531,058 $53,943 ($477,115)

Income Tax $0 $0 $0

State Funding $162,223 $320,223 $158,000

Prop Tax Alloc ($393,343) ($43,348) $349,995

All Othr Op Rev $301,023 ($166,456) ($467,479)

Other Sources $84,189 ($48,876) ($133,065)

Total Average Annual Change $2,355,312 $996,720 ($1,358,592)

5.10% 1.84% -3.26%

$2,853,450

Total revenue increased 5.10% or $2,355,312 annually during the past five years and is projected to increase 1.84% or $996,720 annually through FY2025. Real Estate has the most projected average annual variance compared to the historical average at -$788,927

The 6.20 mill operating levy passed in calendar year 2016 for collection beginning in FY 2017 is responsible for the majority of the revenue increase in the historical data.

Note: Expenditure average annual change is projected

to be > On an annual average basis, expenditures are projected to grow faster than revenue.

Real Estate Real Estate State Funding State Funding 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Sources of Revenue Over Time

Real Estate Public Utility

Income Tax State Funding

Prop Tax Alloc All Othr Op Rev

Other Sources 8.43% 12.69% 2.69% -0.09% 1.16% 2.62% 3.16% 1.06% 1.21% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% ($1,000,000) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

Annual Dollar Change Annual Percentage Change

$41, 718, 136 $45, 235, 721 $50, 977, 538 $52, 347, 551 $52, 301, 657 $52, 908, 444 $54, 292, 301 $56, 006, 446 $56, 600, 046 $57, 285, 257 $0 $0 $0 $0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

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1.010 - General Property Tax (Real Estate)

2015 $0 2016 $24,490,616 2017 $27,422,830 2018 $30,545,493 2019 $30,447,928 2020 $32,433,316 2021 $33,871,233 $0 2022 $35,649,040 $0 2023 $36,463,520 $0 2024 $36,598,696 $0 2025 $36,839,489 $0

Values, Tax Rates and Gross Collections

Tax Yr Valuation Value Change Class I Rate Change Class II Rate Change

2019 928,849,040 28,231,060 38.13 - 41.36 -2020 1,002,805,140 73,956,100 38.08 (0.05) 41.44 0.08 2021 1,026,755,140 23,950,000 37.21 (0.87) 41.86 0.42 2022 1,029,455,140 2,700,000 37.21 (0.00) 42.03 0.17 2023 1,033,155,140 3,700,000 37.21 (0.00) 42.12 0.09 2024 1,060,630,140 27,475,000 36.39 (0.82) 42.05 (0.07)

*Projected % trends include renewal levies

5 Real estate property tax revenue accounts for 62.01% of total revenue. Class I or residential/agricultural taxes make up approximately 73.76% of the real estate property tax revenue. The Class I tax rate is 38.08 mills in tax year 2020. The projections reflect an average gross collection rate of 99.9% annually through tax year 2024. The revenue changed at an average annual historical rate of 5.86% and is projected to change at an average annual rate of 2.60% through FY 2025.

The real estate line item is projecting updated values for Tax Year 2020 (collection 2021) based on the conversion of TIF property in Deerfield Township to taxable, as well as, updated home values based on sales in 2019 from the County Auditor. The TIF property will create new commercial tax base for the District, but is partially offset by a loss of Payment in Lieu of Taxes in the Other Revenue line item.

Gross Collection Rate

97.1%

100.6% 100.6% 100.6%

Revenue collected from taxes levied by a school district by the assessed valuation of real property using effective tax rates for class I (residential/agricultural) and class II (business).

99.7% Including Delinquencies 100.6% $24, 490, 616 $27, 422, 830 $30, 545, 493 $30, 447, 928 $32, 433, 316 $33, 871, 233 $35, 649, 040 $36, 463, 520 $36, 598, 696 $36, 839, 489 $0 $0 $0 $0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Renewal Levy Revenue

11.97% _11.39% -0.32% 6.52% 4.43% 5.25% 2.28% 0.37% 0.66% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% ($500,000) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

62.0% 64.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

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1.020 - Public Utility Personal Property

2015 $0 2016 $2,518 $2,518 2017 $0 $0 2018 $1,370,278 $1,370,278 2019 $1,419,827 $1,419,827 2020 $1,593,175 $1,593,175 2021 $1,655,666 $0 $1,655,666 2022 $1,704,895 $0 $1,704,895 2023 $1,755,842 $0 $1,755,842 2024 $1,808,508 $0 $1,808,508 2025 $1,862,892 $0 $1,862,892

Values and Tax Rates

Tax Year Valuation Value Change Full Voted Rate Change 2019 23,633,970 1,383,510 68.73 -2020 24,333,970 700,000 68.73 -2021 25,058,970 725,000 68.73 -2022 25,808,970 750,000 68.73 -2023 26,583,970 775,000 68.73 -2024 27,383,970 800,000 68.73

-*Projected % trends include renewal levies

The public utility personal property tax revenue is generated from the personal property values, additions, and depreciation reported by the utility companies. This category currently makes up 3.05% of total district revenue. The property is taxed at the full voted tax rate which in tax year 2020 is 68.73 mills. The forecast is modeling an average gross collection rate of 100.00%. The revenue changed historically at an average annual dollar amount of $531,058 and is projected to change at an average annual dollar amount of $53,943 through FY 2025.

100.0% Gross Collection Rate

100.0%

100.0% 100.0% Revenue generated from public utility personal property valuations multiplied by the district's full voted tax rate.

Including Delinquencies 100.0% 100.0% $2, 518 $0 $1, 370, 278 $1, 419, 827 $1, 593, 175 $1, 655, 666 $1, 704, 895 $1, 755, 842 $1, 808, 508 $1, 862, 892 $0 $0 $0 $0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

-100.00% 0.00% 3.62% 12.21% 3.92% 2.97% 2.99% 3.00% 3.01% -120.00% -100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00% ($200,000) $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

3.0% 3.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

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1.030 - No Income Tax

Projected RevenueRenewal Levy Revenue 2015 -2016 -2017 -2018 -2019 -2020 -2021 - -2022 - -2023 - -2024 - -2025 -

-*Projected % trends include renewal levies

7 The district does not have an income tax levy.

Revenue collected from income tax earmarked specifically to support schools with a voter approved tax by residents of the school district; separate from federal, state and municipal income taxes.

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

- - - -

-2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% $0 $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

0.0% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

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1.035 - Unrestricted Grants-in-Aid

The District experienced a $765,000 reduction in state aid in May 2020 and it is carried forward again for FY 2021. The forecast is projecting the reduction will be captured back from 2023-2025, but provides no new funding for enrollment. The graphic to the left is based on students services provided. It is not a "butts in seats" enrollment and should not be compared to those enrollment counts maintained by the District. Funds received through the State Foundation Program with no restriction.

The FY 2019 per pupil and foundation revenue amount is the base aid amount used in FY 2019. In addition to its FY 2021 base funding amount of $9,442,964 the district calculated FY 2021 categorical funding such as spec. ed., preschool, casino of $660,073. Projected amounts less than the FY 2019 base indicate state budget cuts and other assumed change. For fiscal year 2022 - 2025, the district is projecting an average annual increase of 3.80% Note: Wellness funding is not included in these calculations. $8, 795, 339 $9, 239, 315 $9, 983, 379 $10, 262, 512 $9, 879, 282 $9, 888, 688 $10, 293, 983 $10, 708, 837 $11, 109, 330 $11, 480, 936 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 18.9% 20.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Unrestricted as % of Total Revenue

5.05% 8.05% 2.80% -3.73% 0.10% 4.10% 4.03% _3.74% 3.34% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

3,

916 4,

060 4,

196 4,

274 _4,

431 _4,

512 _4,

649 4,

759 4,

872 4,

994 5,

103

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

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1.040 & 1.045 - Restricted Grants-in-Aid

9 Restricted aid is the portion of state per pupil funding that must be classifed as restricted use. Historically the district's restricted state aid changed annually on average by -$51,099 and is projected to change annually on average by -$108. Restricted funds represent 0.04% of total revenue.

Funds received through the State Foundation Program or other allocations that are restricted for specific purposes.

$167, 700 $171, 664 $21, 255 $17, 824 $18, 366 $17, 824 $17, 824 $17, 824 $17, 824 $17, 824 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.0% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Restricted as % of Total Revenue

2.36% -87.62% -16.14% 3.04% -2.95% 0.00% 0.00% 0.00% 0.00% -100.00% -90.00% -80.00% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 0.00% 10.00% ($160,000) ($140,000) ($120,000) ($100,000) ($80,000) ($60,000) ($40,000) ($20,000) $0 $20,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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1.050 - Property Tax Allocation

2015 $0 2016 $5,335,791 2017 $4,746,373 2018 $4,373,561 2019 $3,990,732 2020 $3,566,344 2021 $3,221,515 $0 2022 $3,274,047 $0 2023 $3,304,911 $0 2024 $3,322,176 $0 2025 $3,349,604 $0

*Projected % trends include renewal levies

Property tax allocation primarily consists of reimbursements from the state of Ohio for local taxpayer credits or reductions. The state reduces the local taxpayer's tax bill with a 10% rollback credit, and 2.5% owner-occupied rollback credit, plus a homestead credit for qualifying taxpayers. In FY 2021, approximately 10.4% local residential property taxes will be reimbursed by the state in the form of rollback credits and approximately 1.4% will be reimbursed in the form of qualifying homestead exemption credits.

In addition to these reimbursements the District completed the Phase Out of Tangible Personal Property Tax Replacement Payments in FY 2020. The Kings LSD received over $5M in Tangible Personal Property Tax in 2005 when HB 66 eliminated the business inventory and equipment tax. Operating levies in 2010 and 2016 helped fill the gap created by the loss of the tax and phase out of replacement payments. However, the lack of a state funding formula does not provide the opportunity for the change in tax base to readjust our share of state support. Additionally, the increased enrollment has made the lack of a formual more apparent.

Includes funds received for Tangible Personal Property Tax Reimbursement, Electric Deregulation, Homestead and Rollback.

$5, 335, 791 $4, 746, 373 $4, 373, 561 $3, 990, 732 $3, 566, 344 $3, 221, 515 $3, 274, 047 $3, 304, 911 $3, 322, 176 $3, 349, 604 $0 $0 $0 $0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

6.8% 5.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Property Tax Allocation as % of Total

Revenue

-11.05% -7.85% -8.75% -10.63% -9.67% 1.63% 0.94% _0.52% 0.83% -12.00% -10.00% -8.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% ($700,000) ($600,000) ($500,000) ($400,000) ($300,000) ($200,000) ($100,000) $0 $100,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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1.060 - All Other Operating Revenues

11 Other revenue includes tuition received by the district for non-resident students educated by the district. It also includes interest income, payments in lieu of taxes, and miscellaneous revenue. The historical average annual change was $301,023. The projected average annual change is -$166,456 through FY 2025.

The phase out of TIF areas in the City of Lebanon and Deerfield Township has reduced future Payments in Lieu of Taxes starting in FY 2020. Interest income is projected to decrease from $474,000 in FY 2020 to $240,000 in FY 2021 and $120,000 annually thereafter. Reduced interest rates and declining cash

reserves are the primary reasons for the decline in investment income.

Operating revenue sources not included in other lines; examples include tuition, fees, earnings on investments, rentals, and donations.

$2, 922, 703 $3, 653, 725 $4, 603, 703 $5, 784, 737 $4, 556, 794 $3, 578, 012 $3, 342, 512 $3, 745, 512 $3, 733, 512 $3, 724, 512 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 8.7% _6.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Other Revenue as % of Total Revenue

25.01% 26.00% 25.65% -21.23% -21.48% -6.58% 12.06% -0.32% -0.24% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% ($1,500,000) ($1,000,000) ($500,000) $0 $500,000 $1,000,000 $1,500,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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2.070 - Total Other Financing Sources

FORECASTED

2020

2021

2022

2023

2024

2025

Transfers In - - - -Advances In 64,575 575,506 - - - -All Other Financing Sources 189,806 100,000 10,000 10,000 10,000 10,000

Other sources includes revenue that is generally classified as non-operating. It is typically in the form of advances-in which are the repayment of temporary loans made from the general fund to other district funds. In FY 2020 the district receipted $64,575 as advances-in and is projecting advances of $575,506 in FY 2021. The district also receives other financing sources such as refund of prior year expenditures in this category. The district is projecting that all other financing sources will be $100,000 in FY 2021 and average $10,000 annually through FY 2025.

Includes proceeds from sale of notes, state emergency loans and advancements, operating transfers-in, and all other financing sources like sale and loss of assets, and refund of prior year expenditures.

$3, 470 $1, 814 $79, 870 $423, 989 $254, 381 $675, 506 $10, 000 $10, 000 $10, 000 $10, 000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Other Sources as % of Total Revenue

-47.73% 4303.34% 430.85% -40.00% 165.55% -98.52% 0.00% 0.00% 0.00% -500.00% 0.00% 500.00% 1000.00% 1500.00% 2000.00% 2500.00% 3000.00% 3500.00% 4000.00% 4500.00% 5000.00% ($800,000) ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 $600,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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Expenditure Categories and Forecast Year-Over-Year Projected Overview

3-Year Historical Actual Average Annual Dollar Change Compared to 5-Year Projected

Historical Projected Projected

Average Average Compared to

Annual Annual Historical

$$ Change $$ Change Variance

Salaries $1,366,828 $1,246,670 ($120,159)

Benefits $726,987 $941,787 $214,800

Purchased Services $1,185,036 $702,177 ($482,859)

Supplies & Materials ($89,158) $52,110 $141,268

Capital Outlay $7,081 $3,123 ($3,958)

Intergov & Debt ($1,467) $595 $2,062

Other Objects $23,087 $12,090 ($10,998)

Other Uses $188,995 ($105,101) ($294,096)

Total Average Annual Change $3,407,390 $2,853,450 ($553,940)

7.26% 5.29% -1.97%

$2,853,450

13 Total expenditures increased 7.26% or $3,407,390 annually during the past five years and is projected to increase 5.29% or $2,853,450 annually through FY2025. Purchased Services has the largest projected average annual variance compared to the historical average at -$482,859.

Note: Expenditure average annual change is projected

to be > On an annual average basis, revenues are projected to grow slower than expenditures. Salaries _Salaries Benefits _Benefits 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Expenditure Categories Over Time

Salaries Benefits

Purchased Services Supplies & Materials

Capital Outlay Intergov & Debt

Other Objects Other Uses

$43, 328, 916 $43, 720, 424 $47, 281, 667 $50, 797, 897 $53, 942, 594 $58, 396, 879 $60, 077, 723 $62, 737, 463 $65, 402, 550 $68, 209, 844 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.90% 8.15% 7.44% 6.19% 8.26% 2.88% 4.43% _4.25% _4.29% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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3.010 - Personnel Services

Salaries represent 53.39% of total expenditures and increased at a historical average annual rate of 5.26% or $1,366,828. This category of

expenditure is projected to grow at an average annual rate of 4.00% or $1,246,670 through FY 2025. The projected average annual rate of change is -1.26% less than the five year historical annual average.

The District has included 5 new teaching positions each year of the forecast to address projected enrollment. A base wage increase of 1% annually is forecasted along with projected longevity step increases. The District is in negotiations with its teachers and classified bargaining units for the current school year (2020-21) and beyond.

Employee salaries and wages, including extended time, severance pay, supplemental contracts, etc.

$2 4 ,3 1 1,6 5 6 $2 4 ,6 9 9,6 5 5 $2 6 ,0 5 0,6 8 8 $2 7 ,7 9 9,7 1 2 $2 8 ,8 0 0,1 4 0 $3 0 ,6 3 2,2 7 4 $3 1 ,4 9 3,9 5 6 $3 2 ,7 0 2,1 0 6 $3 3 ,8 5 6,0 6 9 $3 5 ,0 3 3,4 8 9 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 53.4% _51.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Salaries as % of Total Expenditures

1.60% 5.47% 6.71% 3.60% 6.36% 2.81% 3.84% _3.53% 3.48% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

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3.020 - Employees' Benefits

15 Benefits represent 20.98% of total expenditures and increased at a historical average annual rate of 7.40% This category of expenditure is

projected to grow at an annual average rate of 7.21% through FY 2025. The projected average annual rate of change is -0.19% less than the five year historical annual average.

The District offers a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to its employees who work in excess of 30 hours per week on a pro-rated basis. The forecast projects for a 10% increase in the premium of HDHP plan with no plan design changes. The District has been experiencing high claims experience and implemented an Opt Out Program in 2020 (FY 2021) to help employees find affordable coverage options. The premium increase for 2020 was 26% higher than 2019. The Opt Out program reduced the overall premium spend to 13% year-over-year (YOY). The increase for calendar 2021 is 7.5% and the forecast reflects that cost. The Opt Out will continue for 2021 with the continued goal to remove risk from the plan to bring claims utilization in line with existing premium.

Retirement for all employees, Workers Compensation, early retirement incentives, Medicare, unemployment, pickup on pickup, and all health-related insurances. $ 8 ,9 7 0 ,4 3 0 $ 9 ,1 3 5 ,5 2 1 $9 ,8 01 ,1 48 $ 1 0 ,5 2 5 ,9 2 2 $ 1 1 ,3 1 6 ,4 8 3 $ 1 2 ,3 2 8 ,0 4 2 $ 1 3 ,0 4 0 ,0 2 8 $ 1 3 ,9 6 5 ,8 4 3 $ 1 4 ,9 5 6 ,4 8 7 $ 1 6 ,0 2 5 ,4 1 9 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 21.0% 23.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Benefits as % of Total Expenditures

1.84% 7.29% 7.39% 7.51% 8.94% 5.78% 7.10% 7.09% 7.15% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(16)

3.030 - Purchased Services

Purchased Services represent 21.16% of total expenditures and increased at a historical average annual rate of 13.29%. This category of

expenditure is projected to grow at an annual average rate of 5.59% through FY 2025. The projected average annual rate of change is -7.70% less than the five year historical annual average.

Purchased Services has been the fastest growing area of the budget due to initiatives to out-source services previously directly provided by a District employee. Certain technology network management, 2nd and 3rd shift custodial services and substitute teaching services have been outsourced to reduce cost. These services would have been reflected in the salaries and fringe benefit line items historically. The District outsources transportation and has since 2007. No additional out sourcing of services has been included in the forecast.

Amounts paid for personal services rendered by personnel who are not on the payroll of the school district, expenses for tuition paid to other districts, utilities costs and other services which the school district may purchase.

$7 ,6 76 ,5 96 $7 ,8 5 9 ,3 7 1 $9 ,2 7 6 ,0 8 4 $1 0 ,3 0 8,1 6 2 $1 1 ,4 1 4,4 7 8 $1 3,0 08 ,1 79 $1 3 ,4 4 3,4 0 7 $1 3 ,9 1 8,6 4 2 $1 4 ,4 1 2,4 0 7 $1 4 ,9 2 5,3 6 3 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 21.2% 21.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Purchased Services as % of Total

Expenditures

2.38% 18.03% 11.13% _10.73% 13.96% 3.35% 3.54% 3.55% 3.56% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(17)

3.040 - Supplies & Materials

17 The supplies line item has two factors contributing to the uneven history and spend for FY 2021. The spend for 2020 was significantly lower because of the school closure that occurred in March 2020. Bus fuel, cleaning supplies and consumable items were not purchased creating a small one-time savings. In FY 2021 the District has had to increase supply spending on cleaning supplies and PPE. Additionally, a curriculum iniatiative in Science added approximately $100K to the curriculum budget for FY 2021. That spend is not expected to continue and the forecast expects PPE and cleaning supplies to resume to a normal level.

Supplies & Materials represent 1.96% of total expenditures and decreased at a historical average annual rate of -6.74%. This category of expenditure is projected to grow at an annual average rate of 5.86% through FY 2025. The projected average annual rate of change is 12.60% more than the five year historical annual average.

Expenditures for general supplies, instructional materials including textbooks and media material, bus fuel and tires, and all other maintenance supplies. $ 1,2 69 ,3 4 7 $ 1,3 26 ,3 5 7 $ 1,2 83 ,2 6 8 $ 1,3 17 ,0 6 7 $ 1,0 58 ,8 8 4 $ 1,4 56 ,6 9 8 $ 1,2 16 ,3 8 0 $ 1,2 49 ,6 0 2 $ 1,2 83 ,9 4 1 $ 1,3 19 ,4 3 5 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2.0% 1.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Supplies & Materials as % of Total

Expenditures

4.49% -3.25% 2.63% -19.60% 37.57% -16.50% 2.73% 2.75% 2.76% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% ($300,000) ($200,000) ($100,000) $0 $100,000 $200,000 $300,000 $400,000 $500,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(18)

3.050 - Capital Outlay

This line includes expenditures for items having at least a five-year life expectancy, such as land, buildings, improvements of grounds, equipment, computers/technology, furnishings, and buses.

Capital Outlay represent 0.04% of total expenditures and increased at a historical average annual amount of $7,081. This category of expenditure is projected to grow at an annual average amount of $3,123 through FY 2025. The projected average annual change is less than the five year historical annual average.

The District addresses its captial needs with a Permanent Improvement Levy that was approved in 1990 and was converted to a continuing levy in 2015. $ 34 3 ,7 9 4 $440 $59 ,4 37 $ 5 6 ,2 37 $ 2 1 ,6 83 $ 3 3 ,1 37 $ 3 4 ,1 31 $ 3 5 ,1 55 $ 3 6 ,2 09 $ 3 7 ,2 96 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.0% 0.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Capital Outlay

-99.87% 13416.64% -5.38% -61.44% 52.83% 3.00% 3.00% 3.00% 3.00% -2000.00% 0.00% 2000.00% 4000.00% 6000.00% 8000.00% 10000.00% 12000.00% 14000.00% 16000.00% ($400,000) ($350,000) ($300,000) ($250,000) ($200,000) ($150,000) ($100,000) ($50,000) $0 $50,000 $100,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(19)

3.060-4.060 - Intergovernmental & Debt

19 These lines account for pass through payments, as well as monies received by a district on behalf of another governmental entity, plus principal and interest payments for general fund borrowing.

The Intergovernmental/Debt expenditure category details general fund debt issued by the District.

The debt service represents the payment on a financing completed in 2015 to make energy improvements to the District facilities.

$2 0 0 ,2 50 $2 3 1 ,1 25 $2 3 1 ,4 00 $2 2 6 ,6 00 $2 2 6 ,7 25 $2 26 ,7 00 $2 2 6 ,5 25 $2 3 1 ,1 25 $2 3 0 ,5 00 $2 2 9 ,7 00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.4% 0.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Debt as % of Total Expenditures

15.42% 0.12% -2.07% 0.06% -0.01% -0.08% 2.03% -0.27% -0.35% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% ($10,000) ($5,000) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(20)

4.300 - Other Objects

Primary components for this expenditure line are membership dues and fees, ESC contract deductions, County Auditor/Treasurer fees, audit expenses, and election expenses.

Other Objects represent 0.98% of total expenditures and increased at a historical average annual rate of 5.06%. This category of expenditure is projected to grow at an annual average rate of 2.22% through FY 2025. The projected average annual rate of change is -2.84% less than the five year historical annual average.

Of the $561,849 projected to be spent in FY 2021, tax collection fees represent approximately $410,000 of the total. The remaining spend is memberships, audit fees and liability insurance.

$ 55 1 ,2 9 4 $ 45 9 ,4 3 2 $ 52 2 ,4 4 2 $ 49 9 ,6 2 3 $ 52 8 ,6 9 5 $ 56 1 ,8 4 9 $ 57 3 ,2 9 6 $ 58 4 ,9 9 0 $ 57 6 ,9 3 7 $ 58 9 ,1 4 3 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1.0% 0.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Other Objects as % of Total

Expenditures

-16.66% 13.71% -4.37% 5.82% 6.27% 2.04% 2.04% -1.38% 2.12% -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% ($100,000) ($80,000) ($60,000) ($40,000) ($20,000) $0 $20,000 $40,000 $60,000 $80,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(21)

5.040 - Total Other Financing Uses

FORECASTED

2020 2021 2022 2023 2024 2025

Transfers Out - 150,000 50,000 50,000 50,000 50,000 Advances Out 575,506 - - - - -Other Financing Uses - - -

-21 Other uses includes expenditures that are generally classified as non-operating. It is typically in the form of advances-out which are then repaid into the general fund from the other district funds. In FY 2020 the district had advances-out and has no advances-out forecasted through FY 2025. The district can also move general funds permanently to other funds and as the schedule above presents, the district has transfers forecasted through FY 2025. The table above presents the district's planned advances and transfers. The district can also have other uses of funds which is reflected in the table above.

Operating transfers-out, advances out to other funds, and all other general fund financing uses.

The transfers projected are to cover shortfalls anticipated due to the pandemic in athletics and the preschool program. The closure of school in the spring and the reduced capacities this fall have limited the ability to generate revenue necessary to cover these costs.

$ 5 ,5 4 8 $8 ,5 22 $ 5 7,2 00 $ 6 4,5 75 $5 7 5 ,5 06 $1 5 0 ,0 00 $ 5 0,0 00 $ 5 0,0 00 $ 5 0,0 00 $ 5 0,0 00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1.1% _0.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2020 2025

Other Objects as % of Total

Expenditures

53.60% 571.24% 12.89% 791.22% -73.94% -66.67% 0.00% 0.00% 0.00% -200.00% -100.00% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% 700.00% 800.00% 900.00% ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 $600,000 2017 2018 2019 2020 2021 2022 2023 2024 2025

Year-Over-Year Dollar & Percentage Change

(22)

Actual FORECASTED

Fiscal Year: 2020 2021 2022 2023 2024 2025

Revenue:

1.010 - General Property Tax (Real Estate) 32,433,316 33,871,233 35,649,040 36,463,520 36,598,696 36,839,489

1.020 - Public Utility Personal Property 1,593,175 1,655,666 1,704,895 1,755,842 1,808,508 1,862,892

1.030 - Income Tax - - - - -

-1.035 - Unrestricted Grants-in-Aid 9,879,282 9,888,688 10,293,983 10,708,837 11,109,330 11,480,936

1.040 - Restricted Grants-in-Aid 18,366 17,824 17,824 17,824 17,824 17,824

1.050 - Property Tax Allocation 3,566,344 3,221,515 3,274,047 3,304,911 3,322,176 3,349,604

1.060 - All Other Operating Revenues 4,556,794 3,578,012 3,342,512 3,745,512 3,733,512 3,724,512

1.070 - Total Revenue 52,047,276 52,232,938 54,282,301 55,996,446 56,590,046 57,275,257

Other Financing Sources:

2.010 - Proceeds from Sale of Notes - - - - -

-2.020 - State Emergency Loans and Adv - - - - -

-2.040 - Operating Transfers-In - - - - -

-2.050 - Advances-In 64,575 575,506 - - -

-2.060 - All Other Financing Sources 189,806 100,000 10,000 10,000 10,000 10,000

2.070 - Total Other Financing Sources 254,381 675,506 10,000 10,000 10,000 10,000

2.080 - Total Rev & Other Sources 52,301,657 52,908,444 54,292,301 56,006,446 56,600,046 57,285,257

Expenditures:

3.010 - Personnel Services 28,800,140 30,632,274 31,493,956 32,702,106 33,856,069 35,033,489

3.020 - Employee Benefits 11,316,483 12,328,042 13,040,028 13,965,843 14,956,487 16,025,419

3.030 - Purchased Services 11,414,478 13,008,179 13,443,407 13,918,642 14,412,407 14,925,363

3.040 - Supplies and Materials 1,058,884 1,456,698 1,216,380 1,249,602 1,283,941 1,319,435

3.050 - Capital Outlay 21,683 33,137 34,131 35,155 36,209 37,296

Intergovernmental & Debt Service 226,725 226,700 226,525 231,125 230,500 229,700

4.300 - Other Objects 528,695 561,849 573,296 584,990 576,937 589,143

4.500 - Total Expenditures 53,367,088 58,246,879 60,027,723 62,687,463 65,352,550 68,159,844

Other Financing Uses

5.010 - Operating Transfers-Out - 150,000 50,000 50,000 50,000 50,000

5.020 - Advances-Out 575,506 - - - -

-5.030 - All Other Financing Uses - - - - -

-5.040 - Total Other Financing Uses 575,506 150,000 50,000 50,000 50,000 50,000

5.050 - Total Exp and Other Financing Uses 53,942,594 58,396,879 60,077,723 62,737,463 65,402,550 68,209,844

6.010 - Excess of Rev Over/(Under) Exp (1,640,937) (5,488,435) (5,785,422) (6,731,017) (8,802,504) (10,924,587)

7.010 - Cash Balance July 1 (No Levies) 16,339,972 14,699,035 9,210,600 3,425,177 (3,305,839) (12,108,343)

7.020 - Cash Balance June 30 (No Levies) 14,699,035 9,210,600 3,425,177 (3,305,839) (12,108,343) (23,032,930)

Reservations

8.010 - Estimated Encumbrances June 30 - - - - -

-9.080 - Reservations Subtotal - - - - -

-10.010 - Fund Bal June 30 for Cert of App 14,699,035 9,210,600 3,425,177 (3,305,839) (12,108,343) (23,032,930)

Rev from Replacement/Renewal Levies

11.010 & 11.020 - Renewal Levies - - - -

-11.030 - Cumulative Balance of Levies - - - - -

-12.010 - Fund Bal June 30 for Cert of Obligations 14,699,035 9,210,600 3,425,177 (3,305,839) (12,108,343) (23,032,930)

Revenue from New Levies

13.010 & 13.020 - New Levies - - - -

-13.030 - Cumulative Balance of New Levies - - - - -

Five Year Forecast Financial Report