WYOMING CITY SCHOOL DISTRICT. Hamilton County, Ohio. Annual Financial Information Statement

Transcription

1 WYOMING CITY SCHOOL DISTRICT Hamilton County, Ohio 2012 Annual Financial Information Statement This Annual Financial Information Statement pertains to the operations of Wyoming City School District for the fiscal year ended June 30, This Annual Financial Information Statement is intended to satisfy the District's Continuing Disclosure obligations for providing annual financial information and operating data in compliance with Securities and Exchange Commission Rule 15c2-12. Questions regarding information contained in this Annual Financial Information Statement should be directed to: Ronda Johnson, Treasurer, Wyoming City School District, 420 Springfield Pike, Wyoming, Ohio The date of this Annual Financial Information Statement is February 1, 2012.

2 TABLE OF CONTENTS REGARDING THIS ANNUAL FINANCIAL INFORMATION STATEMENT...1 GENERAL INFORMATION AND OPERATING DATA CONCERNING THE BOARD OF EDUCATION AND THE SCHOOL DISTRICT...3 About the District...3 Organization and Officials of the Board of Education...4 Governing Body...4 Budget Procedure...4 Employees...4 Enrollment...5 FINANCIAL MATTERS...6 Accounting - Basis and Policies...6 Investment Policy...6 Financial Condition of the School District...6 Assessed Valuation of the School District...7 Largest Taxpayers...7 Collections and Delinquencies of Ad Valorem Taxes...7 Unvoted and Voted Taxes for Local Purposes...8 Sources of Income...9 Voting Records...10 State Funding for Public Schools...10 Outstanding Debt...12 Future Financings...12 Lease Obligations...12 Pension Obligations...13 CONCLUDING STATEMENT...14 APPENDICES Appendix A - Unaudited Financial Reports for the Year Ended June 30, 2011 Appendix B Budget Appropriations Appendix C - Financial Statement

3 REGARDING THIS ANNUAL FINANCIAL INFORMATION STATEMENT This Annual Financial Information Statement does not constitute an offering of any security of the Board of Education of the School District of Wyoming (the "School District" or "District"), County of Hamilton, Ohio. The information herein is subject to change without notice. The delivery of this Annual Financial Information Statement shall not create any implication that there has been no change in the affairs of the School District since the date hereof. Neither the Securities and Exchange Commission nor any other federal, state, municipal or other governmental entity or agency except the School District will have, at the request of the School District, passed upon the accuracy or adequacy of this Annual Financial Information Statement. This Annual Financial Information Statement, which includes the cover page and Appendices A through C, has been prepared by the School District, pursuant to Continuing Disclosure Agreements and Certificates entered into by the School District in compliance with Securities and Exchange Commission Rule 15c-2-12 for outstanding obligations of the School District. Certain information contained herein is not required to be supplied under the Rule and the School District is under no obligation to provide this additional information in the future. This Annual Financial Information Statement is not sufficient to base an investment decision on but should be read in conjunction with the original offering document and all subsequent updates. All financial and other information presented in this Annual Financial Information Statement has been provided by the School District from its records, except for information expressly attributed to other sources. The presentation of information, including tables of receipts from taxes and other sources, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the School District. No representation is made that past experience, as is shown by the financial and other information, will necessarily continue or be repeated in the future. Insofar as the statements contained in this Annual Financial Information Statement involve matters of opinion or estimates, even if not expressly stated as such, such statements are made as such and not as representations of fact or certainty, no representation is made that any of such statements have been or will be realized, and such statements should be regarded as suggesting independent investigation or consultation of other sources prior to the making of investment decisions. Certain information may not be current; however, attempts were made to date and document sources of information. References herein to provisions of Ohio law, whether codified in the Ohio Revised Code (the "Revised Code") or uncodified, or to the provisions of the Ohio Constitution or the School District's resolutions, are references to such provisions as they presently exist. Any of these provisions may from time to time be amended, repealed or supplemented.

4 As used in this Annual Financial Information Statement, "School District" means Wyoming City School District; and "State" or "Ohio" means the State of Ohio. Any addresses of or links to web sites, which may be contained herein, are given for the convenience of the user only. The School District has not participated in the preparation, compilation or selection of information on these websites, and therefore presents no warranties or representations of the material contained therein. Further, the School District assumes no responsibility or liability for the contents there. Certain information contained in this Annual Financial Information Statement is attributed to the Ohio Municipal Advisory Council (OMAC). OMAC compiles information from official and other sources. OMAC believes the information it compiles is accurate and reliable, but OMAC does not independently confirm or verify the information and does not guaranty its accuracy. OMAC has not reviewed this Official Statement to confirm that the information attributed to it is information provided by OMAC or for any other purpose. Additional information concerning this Annual Financial Information Statement, as well as copies of the basic documentation relating to any outstanding obligations of the School District, is available from Ronda Johnson, Treasurer, Wyoming City School District, 420 Springfield Pike, Wyoming, Ohio 45215, (513) , Ext. 12. GENERAL INFORMATION AND OPERATING DATA CONCERNING THE BOARD OF EDUCATION AND THE SCHOOL DISTRICT There follows in this Annual Financial Information Statement a brief description of the District, together with certain information concerning its governmental organization, its indebtedness, current major revenue sources and general and specific funds. About the District The Wyoming City School District encompasses approximately 2.5 square miles. The 2010 population of the School District was estimated at over 8,352 including the City of Wyoming. The District consists of 3 elementary schools (grades K-4), 1 middle school (grades 5-8), and 1 high school (grades 9-12). The school year student enrollment is 1,939. The District currently employs 165 certified personnel and 77 support personnel. The District is providing transportation for 337 public school students. The District's administrative staff consists of the following: Superintendent (1), Assistant Superintendent (1), Principals (3), Assistant Principals (3), Treasurer (1), Public Information Officer (1), Special Education Director (1) and Athletic Director (1). The District is accredited by the North Central Association of Colleges and Schools and offers a comprehensive academic curriculum including college preparation, advanced placement, gifted education vocational, and special education programs. In addition to academic and related services, students have the opportunity to participate in a wide range of extra-curricular activities for both boys and girls. These include football, basketball, cheerleading, cross-country, baseball, golf, softball, track, swimming, volleyball and wrestling. Students may also participate in such activities as orchestra, band, 3

5 chorus, show choir, drama, district musical, student council, school newspaper, National Honor Society, foreign language clubs, yearbook and pep band. The major sources of revenue to the District are local property taxes on real and personal property, along with State aid. Other funds, such as lunch programs and special classes are funded for their expenditures by designated State and Federal grants. Organization and Officials of the Board of Education The Board of Education is a body politic and corporate and, as such, can be sued and can sue, can enter into contracts and can be contracted with, can acquire, hold, possess and dispose of real and personal property, and take and hold in trust for the use and benefit of the District, any grant or devise of land, and any donation or bequest of money or other personal property. Subject to the provisions of the State Constitution, the District operates pursuant to the Ohio Revised Code. Under such law, there is no authority for the District to have a charter or adopt local laws. Governing Body The governing body is made up of five elected-at-large members with overlapping four-year terms. The present board members, the expiration of each member's term, the number of years each board member has served on the board and their principal occupations are as follows: BOARD OF EDUCATION Name Service Began Term Expires Current Occupation Todd Levy, President 1/ Business Owner Lynn P. Larson, Vice President 1/ Homemaker Terry Marty 6/ Business Owner Jeanie Zoller 1/ Retired Sheryl Felner 1/ Homemaker Budget Procedure Prior to 1986, the District's fiscal year was the calendar year. Since July 1, 1986, the fiscal year for all Ohio school districts has run from July 1 to June 30. Each spring, the Administration reviews the enrollment projections along with the objectives of the upcoming fiscal year. A tentative budget is prepared for review by the Administration and the Board of Education. The budget is then approved at a public meeting of said Board. Employees The Board currently employs 242 (including non-teaching personnel). In fiscal year , the Board paid $13,801,620 in salaries and wages to these employees (including substitutes) and $4,536,729 for fringe benefits which include state employer retirement contributions, workers' compensation insurance coverage, unemployment compensation, severance payments, and medical, dental and life insurance premiums. Of the Board's current employees, 164 are certified by the Ohio Department of Education serving as classroom teachers, education specialists and administrators. The starting salary for a teacher with a bachelor's degree for the period beginning August 1, 2011 was 4

6 $38,598. The maximum teacher salary in 2011 for a Master's Degree plus 36 semester hours was $93,408 with 25 years experience. The District concluded negotiations with most employee groups for contracts expiring as shown in the table below. The number of employees in bargaining units, the collective bargaining agents, which represent them and the dates of expiration of the various collective bargaining agreements follow: Enrollment No. of Employees in Expiration Bargaining Units Contract Union Date 141 Wyoming Association of Education 6/30/2014 Actual enrollment in the School District for the school year and projected enrollment for the year are shown in the table below: Grades School Year K Total Enrollment , * ,931 *Projected Source: Records of the Treasurer of the Board of Education The following is a description of both the existing school facilities, including name of school, grades housed and student capacity: Basic Data Concerning the School Facilities for Grades Enrollment Capacity 3 Elementary Schools Elm Avenue Elementary K Hilltop Elementary K Vermont Elementary K Middle School Wyoming Middle High School Wyoming High TOTAL 1,939 2,300 5

7 FINANCIAL MATTERS Accounting - Basis and Policies The School District maintains its records in accordance with the Uniform System of Accounting prescribed by the Department of Audit for the State of Ohio. Examinations of the records are conducted on an annual basis by the Department. The most recent examination of the District's records by the Department covered the period ending June 30, All Board of Education expenditures are made in accordance with the annual appropriation resolution adopted at the beginning of the fiscal year at a total not to exceed the Amended Certificate of Estimated Resources certified by the County Budget Commission. All receipts are classified in accordance with the guidelines prescribed by the office of the Auditor of the State. Other special funds for grants and restricted monies and their related budgets are maintained in accordance with the agreements or specific purposes designated for these funds. These funds are also maintained in accordance with guidelines of the Auditor of State and are included in the two-year audits conducted by the Department of Audit. The Board of Education's fiscal year corresponds with the July 1 to June 30 school year. The collection of taxes is made on a calendar year basis. The responsibilities for the major financial functions of the Board of Education are divided between the Board of Education and the Treasurer. The Treasurer is the fiscal officer of the Board of Education, its chief accounting officer, and serves the Board of Education as financial advisor. The Treasurer keeps the accounts of the Board of Education and is responsible for accurate statements of all moneys received and expended and of all taxes. At the end of each fiscal year, the Treasurer must examine the accounts of all offices and departments of the Board of Education. The Treasurer is not to allow the amount set aside for any appropriation to be overdrawn, or the amount appropriated for any one item of expense to be drawn upon for any other purpose, or allow a voucher to be paid unless sufficient funds are in the treasury of the Board of Education to the credit of the fund upon which such voucher is drawn. Investment Policy The School District is limited by the Uniform Depository Act and the Ohio Revised Code Chapter 135 on its investments. The School District makes all investments in accordance with the law. The School District values safety, liquidity and return in that order. Interest earned in the general fund by the School District in 2011 totaled $65, Financial Condition of the School District The Board of Education maintained an unencumbered balance in the general operating fund last year as shown by the following cash basis analysis of the general fund: Fiscal Year Beginning Cash Ending Cash Ending Balance Receipts Expenditures Balance 6/30/11 $12,593,819 $21,324, $21,470, $12,447,

8 Assessed Valuation of the School District The assessed valuation of property within the School District subject to levy of ad valorem taxes last year is indicated in the following table: Tax Year Real (a) Tangible Personal Assessed Valuation Public Utility (b) Total Assessed Valuation % Increase Over Previous Year 2010 $299,436,090 $0 $3,312,790 $300,748,880 (0.09%) ,750, ,604, ,355,890 (9.77%) (a) Including public utility (b) Tangible personal only Source: Hamilton County Auditor Largest Taxpayers The largest taxpayers within the School District for tax collection year 2011 (tax year 2010) are shown in the following table: Taxpayer Total Assessed Valuation (Real and Personal Property) % of Total Assessed Valuation 1. Duke Energy Ohio, Inc $3,474, % 2. Heritage Apartment Co. 980, Wyoming Community Improvement 479, Landers, Thomas & B. Kay 424, Rutter, Michael & Meilan 416, Pepper, John E. Jr. & Frances 395, Lipson, Susan C. 386, Loper, David K. & Elizabeth S 385, Ward, Nancy B. TR 362, Jackson, Phyllis A. TR 360, Source: Hamilton County Auditor *Duke Energy Ohio ( Duke Energy ) has filed a complaint challenging the valuation or assessment of its property. Duke Energy has communicated to the District that while the appeal is pending it will pay 90% of the current amount due as determined by the County Auditor. If the challenge is overturned Duke Energy will be required to pay the remaining 10% plus an additional 4% penalty. Collections and Delinquencies of Ad Valorem Taxes The following table sets forth the amounts billed for ad valorem real estate and public utility taxes and tangible personal property taxes for the School District on the tax duplicate for the tax year 2010 (collection year 2011): 7

9 Real Estate, Public Utility and Tangible Personal Property Tax Collection Percentages Current Real Property Delinquent Tax Collection Year Year Billed Collected % Billed Collected % $11,713,863 $11,411, % $332,133 $264, % ,735,200 11,488, , , Current Tangible Personal Property Delinquent Tax Collection Year Year Billed Collected % Billed Collected % $9,675 $9, % $21,218 $ % , Unvoted and Voted Taxes for Local Purposes To meet current expenses of subdivisions, the laws of Ohio authorize two types of ad valorem tax levies - unvoted and voted. Unvoted ad valorem tax levies are permitted by the State Constitution and the Revised Code so long as all such unvoted taxes do not exceed one per cent (ten mills) of any property's assessed valuation. This limitation is known as the "ten-mill limitation" and such unvoted taxes are referred to as the "inside millage". Ohio law permits voted ad valorem tax levies outside the one percent limitation when approved by a majority of the electors of a taxing District voting on the proposition. A voted tax levy for a board of education is generally initiated by a resolution of the Board of Education to place such a levy on the ballot at a general, primary or special election. The following chart lists the effective rates of taxation for the General Fund and Bond Retirement Fund of the Board of Education for the valuation year 2011 (collection year 2012): RATES OF TAXATION FULL RES./AGRICULTURAL COMMERCIAL/IND. Bond Bond Bond Year Inside Outside Ret. Total Inside Outside Ret. Total Inside Outside Ret. Total Source: Hamilton County Auditor 8

10 Sources of Income The following chart shows the sources of income for the General Fund of the Board of Education for the fiscal year ended June 30, 2011: Sources and Uses of Income - General Fund REVENUES: From local sources: Taxes $14,521,182 Tuition 681,161 Earnings on investments 98,302 Other local revenues 331,817 Intergovernmental state, federal, and local 6,463,172 Extracurricular activities 19,741 TOTAL REVENUES $22,115,375 EXPENDITURES: Current: Instruction: Regular $11,016,006 Special 1,921,337 Vocational 106,326 Other 18,396 Support services: Pupil 1,775,639 Instructional staff 916,459 General administration 225,222 School administration 1,715,374 Fiscal 910,599 Business 1,113 Operations and maintenance 1,565,925 Public transportation 387,755 Operation of Non-Instructional Services 4,583 Extra-curricular 483,587 Repayment of Debt 125,520 Capital Outlay 177,060 TOTAL EXPENDITURES $21,450,981 Excess (deficiency) of revenues $664,394 Over (under) expenditures OTHER FINANCING SOURCES (USES): Contributions and Donations $0 Advances In 0 Transfer In 0 Refund Prior Year Expenses 0 Transfers Out (35,000) Advance Out 0 Refund Prior Year Receipts TOTAL OTHER FINANCING SOURCES (USES): $(35,000) Excess (deficiency) of revenues and $629,394 Other financing sources over (under) Expenditures and other uses Fund balance, July 1 (restated $13,825,386 Fund balance, June 30 $14,454,780 Source: Records of the Treasurer of the District 9

11 Voting Records In May 2005, the District placed a permanent improvement levy on the ballot. The levy passed with 57.93% of the voters approving the levy. The District has not had an issue on the ballot since State Funding for Public Schools Public schools in Ohio receive financial assistance from the State. There are certain requirements for receipt of state funding; for example, the school district must levy at least 20 mills for operating purposes, certain reporting and accounting requirements must be met, schools in the district must be open for a minimum number of days or hours for instructional purposes, and teachers salaries must meet certain criteria. Failure to comply with these requirements may result in the elimination or reduction of benefits received by a school district. The State Budget eliminates the Evidence-Based Model as the program to provide state funding to the school districts. A new funding mechanism has not yet been formulated so for fiscal year schools will be funded pursuant to a transitional formula (the Bridge Formula ) until a new final formula is devised. The Bridge Formula provides funding to districts based upon a fiscal year amount per pupil basis. For fiscal year each school district is to receive no less state foundation aid as they received in fiscal year after subtracting the state fiscal stabilization funds from the funding total. The Board of Education currently participates in the Foundation Program and, as shown in the following table, relies on the Foundation Program for approximately 24.19% of its operating revenues: Fiscal General Fund State Year Revenues Foundation % of General Fund Revenues Consisting of State Foundation $22,331,288 $5,272, % ,324,903 5,157, Since the funding for the Foundation Program must be appropriated by the General Assembly for each biennium, there can be no assurance that current funding levels will be continued. From time to time there may be an increase, a stabilization or a reduction of the level of State assistance to School Districts. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 10

12 Overlapping Governmental Entities The major political subdivisions overlapping all or a portion of the territory of the School District, the approximate percentages of the assessed valuation of such subdivisions located within the School District and the net overlapping debt (excluding self-supporting debt) attributable to the School District from such subdivisions are as follows: Subdivision % of Assessed Valuation Within School District Net Debt Wyoming City School District % $17,179,230 Hamilton County ,270,741 Wyoming City ,184,954 Great Oaks Joint Vocational School ,750 Cincinnati Hamilton Co. P/A Misc Hamilton County Park District Misc TOTAL $29,909,675 Net Debt Net Overall Debt Total Per Capita % of A/V Total Per Capita % of A/V $17,179,230 $2, % $29,909,674 $3, % Source: Ohio Municipal Advisory Council January 27, Each of these entities operates independently under and is governed by Ohio Law with its own budget, tax rate within the "ten-mill limitation" discussed herein at "BOARD OF EDUCATION DEBT AND OTHER LONG-TERM OBLIGATIONS Indirect Debt Limitations". Principal Amounts of Outstanding Debt Leeway for Additional Debt Within Direct Debt Limitations Total Debt $17,189,230 Exempt Debt 0 Total non-exempt debt 17,189,230 1/10th of 1% of tax valuation (unvoted debt limitation 271,356 Total limited tax non-exempt bonds outstanding 0 Debt leeway within the 1/10th of 1% unvoted debt limitation but subject to indirect debt limitation 271,356 9% of tax valuation (voted and unvoted debt limitation 24,422,030 Total non-exempt bonds outstanding 17,189,230 Balance in Bond Retirement Fund $1,342,272 Net Non-exempt Debt 15,846,958 Debt leeway within debt limitation 8,575,072 11

13 Outstanding Debt Date of Original Issue The District currently has the following outstanding bonds, notes and other debt obligations: Purpose General Obligation Bonds Interest Rate Final Maturity Original Amount Issued Amount Outstanding 11/01/98 School Improvement % 12/01/27 $21,600,000 $3,735,000* 08/15/05 School Improv Refunding % 12/01/24 18,449,983 13,454,230 * Remainder has been defeased Date of Original Issue Purpose Lease Purchase Interest Rate Final Maturity $40,049,983 $17,189,230 Original Amount Issued Amount Outstanding 04/23/01 Building Improvement 6.03% 06/01/26 $ 950,000 $867,500 04/23/01 Building Improvement* 8.75% 06/01/16 550, ,000 * Taxable Lease Purchase is not considered debt for state law purposes. Future Financings $1,500,000 $1,149,500 The Board is asking for voter approval on March 6, 2012, for a $25,037,114 bond issue for a middle school improvement project. The project includes renovating portions of the current facility and also new construction for math, science and technology along with classroom expansion for fine arts. Improvements for the health and safety of students are also planned, pending voter approval. Lease Obligations The Board of Education currently has the following lease obligations for equipment and property leased by the District: Maintenance garage (building) Copiers (District) $10,500 per year $70,000 per year 12

14 Pension Obligations The tables below show the employee and employer contributions to the retirement programs of certificated and classified employees of the District for the fiscal years and : Retirement Programs State Teachers' Retirement - Certificated Employees Employer Contribution Member Contribution Year Percent $ Amount Percent $ Amount % $1,625,818 10% $984, ,650, ,021,331 School Employee Retirement - Classified Employees Employer Contribution Member Contribution Year Percent $ Amount Percent $ Amount % $445,247 10% $239, , ,154 Source: Records of the Treasurer of the Board of Education and Records of State Teachers Retirement System and School Employees Retirement System The Board of Education's annual contributions to STRS and SERS are treated as a current expense and are paid primarily from its General Fund. Payments are deducted by the State from each monthly School Foundation Program payment. Current law establishes maximum contribution rates to STRS of 10% and to SERS of 10% for the employees' portion and 14% for the employer's portion. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 13

15 CONCLUDING STATEMENT This Annual Financial Information Statement has been duly authorized and prepared by, and executed and delivered for and on behalf of, the Board of Education by its President and Treasurer. BOARD OF EDUCATION OF THE WYOMING CITY SCHOOL DISTRICT By: /s/ Todd Levy President By: /s/ Ronda Johnson Treasurer Dated: February 1,

16 APPENDIX A FINANCIAL REPORT OF THE BOARD OF EDUCATION Unaudited financial reports for the year ended June 30, 2011

17 2012 BUDGET APPROPRIATIONS APPENDIX B

18 APPENDIX C FINANCIAL STATEMENT FOR BOARD OF EDUCATION Ohio Revised Code Sections , and I, Ronda Johnson, Treasurer of the Board of Education of the Wyoming City School District in Hamilton County, Ohio, do hereby certify that the following statements concerning the finances of such Board of Education and School District are true and correct: 1. Tax valuation of the School District as shown by the tax lists and duplicates for the calendar year 2012, the year most recently certified for collection: $ 271,355, Total principal amount of all outstanding securities of the Board of Education, including the present issue of $ 0 : $ 17,189, Exempt securities included in item 2: (a) Notes issued in anticipation of the collection of current revenues under Section O.R.C.: $ (b) Notes issued in anticipation of the collection of taxes under Sections or O.R.C.: $ (c) Notes with maturities over one year and issued in anticipation of the collection of the proceeds from a specifically identified voter-approved tax levy under Section or Section O.R.C.: $ (d) Securities issued under Sections to O.R.C. to participate in Federal aid programs: $ (e) Securities issued prior to August 19, 1994 to finance energy conservation measures under Section O.R.C.: $ (f) Securities evidencing loans received under Sections , and O.R.C.: $ (g) Securities issued to establish a self-insurance program for health care benefits under Section O.R.C.: $ (h) Other exempt securities: $ Total of items 3(a) to 3 (h) inclusive: $ 0 4. (a) Total securities subject to 9% limitation [item 2 minus item 3]: $ 17,189,230 (b) Bond retirement fund applicable to principal of such securities: $ 1,342,272 (c) Net amount subject to 9% limitation: $ 15,846, Securities included in item 4(a), but issued without authority of an election: $ 6. (a) Securities included in item 5 issued for energy conservation measures under Section O.R.C.after August 19, 1994 and Section (G) O.RC. $ (b) Bond retirement fund applicable to principal of such securities: $ (c) Net amount subject to 9/10 of 1% limitation of Section (G) O.R.C.: $ 7. (a) Unvoted securities issued for other purposes [item 5 minus item 6(a)]: $ (b) Bond retirement fund applicable to principal of such securities: $ (c) Net amount subject to 1/10 of 1% limitation of Section (A) O.R.C.: $ 8. Bonds or notes issued for the purpose of classroom facilities from the State under Chapter O.R.C., included in item 4(a): $ 9. Bonds or notes included in item 4(a) but issued beyond 9% limitation by virtue of certification as approved special needs district under Section (E) O.R.C.: $ IN WITNESS WHEREOF, I have hereunto set my hand this 1 st day of February, Ronda Johnson Treasurer PECK, SHAFFER & WILLIAMS LLP BOND ATTORNEYS CINCINNATI AND COLUMBUS, OHIO