School forecast shows cash reserve lasting through 2023
NEXUS pipeline could lead to additional revenue
Doug Beeman
WADSWORTH – According to the latest projections, the Wadsworth City School District should be in the black through fiscal year 2023.
District Treasurer Doug Beeman presented the five-year financial forecast to the Board of Education earlier this month. By state law, he must present the forecast twice a year.
According to the forecast, the district would have an ending cash balance of $19.9 million at the end of fiscal year 2020, $17.1 million at the end of 2021, $12.3 million at the end of 2022 and $5.2 million at the end of 2023. If these projections stay on track, the district would have a negative cash balance of $4.8 million at the end of 2024.
“Right now, we are projecting a positive balance through fiscal year 2023 because the new revenues from the NEXUS pipeline pushed it out another year,” Beeman said.
The increase in property valuations from the pipeline is expected to bring the district roughly $1.5 million in additional annual revenue. But Beeman said the utility companies have until Dec. 6 to appeal those values. He said, currently, the district is projecting the additional revenue to be about $980,000 annually.
Beeman also broke down where the money is being spent in the district.
For fiscal year 2020, employee salaries make up 59 percent of the budget. Employee benefits make up 22 percent. Purchased services make up 14 percent, supplies make up 3 percent. Capital outlay such as buses, vehicles and technology make up 1 percent and “other” which includes county auditor and treasurer fees makes up 1 percent.
The district received $47.3 million in revenue for fiscal year 2019 and expenses were $46.7 million. Revenue for fiscal year 2020 is projected to be $48.8 million with expenses at $49.2 million.
District Treasurer Doug Beeman presented the five-year financial forecast to the Board of Education earlier this month. By state law, he must present the forecast twice a year.
According to the forecast, the district would have an ending cash balance of $19.9 million at the end of fiscal year 2020, $17.1 million at the end of 2021, $12.3 million at the end of 2022 and $5.2 million at the end of 2023. If these projections stay on track, the district would have a negative cash balance of $4.8 million at the end of 2024.
“Right now, we are projecting a positive balance through fiscal year 2023 because the new revenues from the NEXUS pipeline pushed it out another year,” Beeman said.
The increase in property valuations from the pipeline is expected to bring the district roughly $1.5 million in additional annual revenue. But Beeman said the utility companies have until Dec. 6 to appeal those values. He said, currently, the district is projecting the additional revenue to be about $980,000 annually.
Beeman also broke down where the money is being spent in the district.
For fiscal year 2020, employee salaries make up 59 percent of the budget. Employee benefits make up 22 percent. Purchased services make up 14 percent, supplies make up 3 percent. Capital outlay such as buses, vehicles and technology make up 1 percent and “other” which includes county auditor and treasurer fees makes up 1 percent.
The district received $47.3 million in revenue for fiscal year 2019 and expenses were $46.7 million. Revenue for fiscal year 2020 is projected to be $48.8 million with expenses at $49.2 million.
