TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY

What Are The District's General Fund Revenue Sources?

Local Taxes are comprised of Real Estate,

Revenue Sources - Percentage View
Personal Property, and Income Tax. State
Foundation is comprised of both
3% Local Taxes
Unrestricted Per-Pupil Basic Aid,
Transportation, Special Education, and
Other State Aid. State Property Tax 35% State Property Tax
Rollback
Rollback represents a state reimbursement
of the homestead reduction on local State Foundation
property taxes. All Other includes
investment earnings, federal, and open 58% All Other
enrollment (if applicable). 4%

Where Does The District Spend Its General Fund Dollars?

Expenditures - Percentage View Daily Expenditures Per-Pupil Instruction

8% 3% Building
$3.54 $1.22 Operations
13% $5.58
Administration

Pupil Support
56% $25.37
20% $8.70 Staff Support

These pie charts provide a percentage view of expenses by category, as well as a look at those same expenditures in a daily per-pupil
format . Instruction relates to expenditures at the classroom level. Building operations includes building maintenance, utilities, etc.
Administration covers both central office personel, as well as building principals and clerical support. Pupil support provides for
transportation, classroom aides, etc. Staff support includes staff training and curriculum enhancement.

What is the Local Taxpayer's Share of Educating a Student?

Resident Share of the Daily Cost to Educate a Student

The Daily Cost includes services such as
textbooks, building repair and upkeep, as
$50.00 $44.40 well as teacher salaries. When thought
$45.00 about on a daily basis the cost is more
$40.00 representative of expenses a family will
$35.00 face in day-to-day living.
$30.00
The resident share includes only revenue
$25.00 received from residential / agricultural real
$20.00 estate taxes plus income taxes.
$15.00
$13.17
$10.00
$5.00
$0.00
Daily Cost to Educate a Student Resident Share of the Daily Cost

© 2009 BAIRD-SBS Note: Fiscal Year 2009

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 TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY

What Is The Valuation Breakdown By Property Classification?

Calendar Year 2009
Residential / Agricultural valuations include only residential
Valuations By Classification
privately owned dwellings and farms. Commercial / Industrial
Tangible valuations represents land and buildings owned by business
Personal and industry. Both Res / Ag and Commercial real estate
Property
propery is taxed at 35% of market value.
6%
Commercial/ Tangible Personal Property includes equipment and inventory
Residential/
Industrial
Agricultural owned by business and industry. This property is currently
12%
82% taxed at 25% of its market value. However, it is important to
note the General Tangible component of this tax base is
scheduled to be phased-out over a four year period beginning
in 2006.

What Are The Changes In Local Property Values?

Valuation Trend Analysis

(History & Projected)
Residential / Agricultural and Commercial / Industrial Residential/
values are updated every 3 years through Agricultural
reappraisals and updates of property values $450,000,000
$400,000,000
conducted by the County Auditor. This creates the $350,000,000 Commercial/
Valuation

stair-step effect in real estate values depicted in the $300,000,000 Industrial

graph. Tangible values can be erratic. $250,000,000
$200,000,000 Tangible
$150,000,000 Personal
Increases in valuations are caused by a combination
$100,000,000 Property
of reappraisal and update (inflationary) growth, as $50,000,000
well as newly added property (non-inflationary) $0
growth.
04

05

06

07

08

09

10

11

12

13
20

20

20

20

20

20

20

20

20

20
Calendar Year

What Is The Effect Of Inflation On These Values?

Total Valuation Growth / Loss

60.00% Reappraisal --
Historic Current Projected Inflation
40.00%

20.00%

0.00% Total New

Growth / Loss
Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind

Comm / Ind
Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

Res / Ag

Pers Tang

-20.00%

-40.00%

-60.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013
-80.00%

-100.00%

-120.00%

Calendar Year

The areas depicted in red indicate reappraisal (inflationary) valuation growth. Valuation reappraisals or valuation updates occur once
every 3 years per county. School districts that reside completely within one county, will only experience this type of valuation growth once
every 3 years. Districts that have effective millage rates above the 20 mill floor do not receive the benefit of additional revenue from
these types of valuation increases (except for growth applied to inside millage, which normally is rather insignificant).

The areas depicted in blue indicate new growth / loss of property valuation. Valuation increases associated with new property growth do
translate into additional revenue for the district. However, generally speaking increases in valuation results in a loss of State basic aide
revenue, which can increase local taxpayer cost and decrease State revenue with no net revenue to the school district.

© 2009 BAIRD-SBS

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 TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY

How Are Local Revenue Sources Changing Compared To State Revenue Sources?

Revenue Sources

$20,000,000
$18,000,000
$16,000,000 Local Tax
$14,000,000 Revenue
$12,000,000
$10,000,000 Revenue from
$8,000,000 State
$6,000,000
$4,000,000
$2,000,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year

It is important to note the trend depicted in this graph. Is local revenue sources increasing at a faster rate than
revenue from the State? If this is the case, it represents a shifting of the tax burden from the State to the local tax
payers. This is a classical example of the "phantom" revenue effect engrained in the current state foundation funding
formula.

How Are Expenditure Categories Changing?

Expenditure Categories
$25,000,000

$20,000,000 Salaries

$15,000,000 Benefits

$10,000,000 Purch Serv,

Supplies, &
Equip
$5,000,000 All Other

$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year

Schools are a service oriented business. As such, most of a school's resources are dedicated to salaries and fringe
benefit expenditures. A school must offer competitive wages and benefits to attract and retain the most qualified staff
possible to deliver a quality education to its students.

Other expenses a school district realizes incude utililities, maintance and upkeep of facilities, supplies (textbooks,
teaching materials, office supplies, etc.), equipment (computers, furniture, and other hardware). These costs are
reflected by the Purch Serv., Supplies, & Equipment line on the graph. These costs are driven by inflationary
pressures. The All Other category depicted on this graph includes County Auditor and Treasurer fees for the
collection of real estate taxes, as well as advances and transfers.

© 2009 BAIRD-SBS

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 TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY

How Does Our District Compare To Similar Districts And The State Average?

Our Revenue Compared To Other Districts

$5,500
$5,000 TEAYS VALLEY
LOCAL
$4,500 SCHOOL
$4,000 DISTRICT - -
$3,500 PICKAWAY
Per Pupil

$3,000 COUNTY
SIMILAR
$2,500 DISTRICTS
$2,000
$1,500
$1,000
$500 STATE
$0 AVERAGE
Local State Federal
Revenue Sources

This graph compares the District's revenue sources to the state average and to the average of those districts considered most similar by the
Ohio Department of Education.

Our Expenditures Compared To Other Districts

$6,000
TEAYS VALLEY
LOCAL SCHOOL
$5,000
DISTRICT - -
PICKAWAY
$4,000 COUNTY
Per Pupil

SIMILAR
$3,000 DISTRICTS

$2,000

$1,000 STATE AVERAGE

$0
Instruction Building Oper Administration Pupil Support Staff Support

Type of Expenditure

This graph compares the District's expenditures to similar districts, as well as to State averages.

© 2009 BAIRD-SBS Note: Fiscal Year 2009

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 TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY
How Do Revenues Compare To Expenditures?

Revenues & Expenditures

$40,000,000

$35,000,000

$30,000,000
Total Revenues
$25,000,000

$20,000,000
Total
$15,000,000 Expenditures

$10,000,000

$5,000,000

$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year

Just like any privately held business, schools have breakeven points too. Typically a school district operates within levy
cycles. For example, the common situation is for a school's revenue to exceed expenditures for a period of years
immediately following the passage of a levy. However, because of HB920 which limits inflationary growth on locally
approved levies, expenditures (driven by inflationary pressures) will eventually overtake revenues if the school simply
attempts to maintain what they have.

What Is The Annual Net Overage Or (Shortfall)?

Excess of Revenues Over (Under) Expenditures

2,000,000

1,000,000

-1,000,000

-2,000,000

-3,000,000

-4,000,000

-5,000,000

-6,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Fiscal Year

The above graph shows the annual operating surplus or deficit of the District. This may be the most important management information tool the
District has at its diposal because it indicates trends. When expenditures begin to exceed revenues on a regular basis, it signals a need for
decisions regarding either increasing revenue or decreasing expenditures.

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 TEAYS VALLEY LOCAL SCHOOL DISTRICT - - PICKAWAY COUNTY
What Is The Effect On The Cash Balance?

Historic and Projected End Of Year Cash Balances

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

-$2,000,000

-$4,000,000

-$6,000,000

-$8,000,000

-$10,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year

This graph shows the results of our projection assumptions on CASH. No one can predict a cash balance To The
Penny . That is why we should consider trends rather than exact dollar amounts. For example, a declining cash balance
may indicate a trend that needs to be addressed.

© 2009 BAIRD-SBS

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