Eastwood expenses on the rise
Written by MARIE THOMAS BAIRD Sentinel Education Editor
Monday, 28 October 2013 11:05
PEMBERVILLE - As with many school districts around the county, Eastwood is projecting a steady increase in expenses combined with a steady drop in revenue for the near future.
At last week's school board meeting, district Treasurer Dave Michel presented his five-year financial forecast, which is required each year by the state.
In the forecast, Michel noted a $464,000 drop in revenue over the next five years combined with a $1.2 million increase in expenditures.
Michel has projected both property tax and income tax collection as flat at $4.6 million and $1.8 million, respectfully, each year through 2017-18. He also has figured on no increase in state funding during that time, and kept that line item at $6 million.
Income tax income has stayed constant at around $1.8 million in three of the last four years, Michel explained in his report.
He projected a 35-percent drop in all other revenue during that same time, which encompasses the complete loss of $300,000 from Troy Energy, a flat estimate of $60,000 for participation fees, and a slight increase in open enrollment funds through 2015-16.
For expenses, the district expects for salary costs to increase from $8.2 million this year to $8.6 million in 2017-18.
Retirement and insurance benefits also will go up in that time, as will purchased services such as electricity, gas, postage, trash, water, professional meetings and travel, legal fees and maintenance. Services are expected to increase to $1.2 million in 2017-18 compared to $900,000 this year.
Supplies and materials will drop each year for the next four years due to fewer school supplies for fewer students plus fewer replacement parts with the purchase of two new buses.
The bottom line is revenue for this year is $13.75 million, which drops to $13.32 million in 2017-18. During that same time, expenses go from $14.67 million to $15.95 million.
This year's fund balance is expected to end at $8.35 million, but will steadily decrease to $476,676 in five years due to having to draw from it to cover growing expenses.
The district's five-year, 2.0-mill property tax renewal request in November is for permanent improvements only and is not used for general operating expenses.
Also at the meeting, the board:
â€¢Â Â Â Recognized the continued support of the now disbanded Luckey Kiwanis Club, and accepted a $600 donation from the group. The Kiwanis has sponsored the high school Key Club for years, and the school club will continue.
â€¢Â Â Â Commended high school art students Dylan Herrig, Sarah Selzer, Jenne Venier and Cassandra VanDenk for winning the chalk walk competition at the Black Swamp Arts Festival. Teacher Lauren Smith said the $500 winning prize will go to purchase an electric potters wheel and other items for her department.
â€¢Â Â Â Recognized Jacob Rahe as the October Student of the Month at the high school.
â€¢Â Â Â Accepted a retirement request from bus driver Wanda Root, effective Nov. 1; and a resignation request from teacher Richard Keyes, effective Oct. 1.
â€¢Â Â Â Learned from Superintendent Brent Welker that the district received $24,000 to reimburse security efforts in all of its buildings. The Ohio School Facilities Commission offered the grants through its School Security Grant Program, established in the recently passed state budget bill. The bill authorizes OSFC to reimburse public schools for school security. The district board approved a contract with Marygrove Awning for $20,000 to begin installing shatter-proof glass films at the school buildings; and spent $19,000 with Habitec to install additional cameras and door security, again at all the buildings.