Board posts spring financial forecast

Elyria City Schools is looking to be on a smooth path with its 2018 through 2022 five-year financial forecast.

A forecast of the five-year plan was first shared in October with the Elyria School Board. An updated forecast was shared May 2 during their school board meeting.

Shown in the plan, Elyria’s financial picture has improved significantly since the filing of the October forecast, according to Treasurer Joy Clickenger.

Clickenger said the main driver of the improvement is the health insurance renewal, which is effective July 1.

She said the district assumed a 12 percent premium health care increase that was listed in the October forecast. However, in the fiscal report of 2019, there will be zero increase.

There is also an additional $700,000 in revenue for fiscal year 2018, Clickenger added.

In the report, revenues a are a bit above the forecasted level by less than 0.5 percent of what was estimated in October.

Also, the expenditures are just a hair lower by 0.4 percent than what was estimated.

In total, the district is expecting to take in $1.25 million more than what is being expended in 2018, the plan said.

Clickenger said that these factors have improved the district’s financial picture and pushed its deficit spending to fiscal year 2020.

She also shared there will be more than $12 million in cash reserves by 2022.

During the meeting, she noted the forecast is based on history and trends and covers only what a school’s general fund is.

She added those funds are not meant for the construction costs of the district’s new five-school master plan.

The district is finalizing details of the construction of the new schools.

In addition, revenue is expected to remain flat in the district’s largest sources of revenue, which is state aid and property taxes.

Clickenger said the biggest risk factor to the forecast is state aid, which depends on the number of students in general and what schools they are attending.

However, she advised that the district believes its enrollment is stabilizing and that should not be an issue in the future.

The Ohio Education Department requires this full update on financial status of schools twice a year to be aware of any financial problems, Clickenger said. Although, finance is not an issue for Elyria City Schools, she added.

The district has enough funds to go toward the needs of students, she said.

Based on the trends in the forecast and what the future looks like for the district financially, things are looking good, Clickenger said.