Financial Fast Facts-The Newsletter

Welcome to the second issue of Financial Fast Facts - The Newsletter, with Strongsville City Schools Treasurer George Anagnostou.

Over the last two school years, as part of the District's strategic plan, we launched Financial Fast Facts to keep our community informed about Strongsville City Schools' finances. What began as informative infographics evolved into a video series and now we are adding this newsletter.

To view previous Financial Fast Facts infographics and videos, CLICK HERE or scan the QR code below.

Each month at our second Board of Education meeting, we present the district's financial reports under the Treasurer's Report section. These reports include a detailed financial status report and a supplemental report highlighting monthly revenues and expenditures, year-to-date comparisons, and projections against our five-year forecast.

Since our fiscal year runs from July through June, December marks the halfway point—making this an important milestone to review our financial health.

December 2025 Financial Highlights

Cash Position:

• Month-end cash balance: $41,071,533

• This is down $8,745,855 (15.64%) from last year

Revenue Update:

• Year-to-Date: Revenues totaled $39,781,231—down $3,252,901 (7.56%) from last year's $43,034,132

• Fiscal Year Projection: We're trending $1,432,287 (1.72%) higher than forecasted, now projected at $84,507,778

Expenditure Update:

• Year-to-Date: Expenditures totaled $46,795,830—up $2,279,822 (5.12%) from last year

• Fiscal Year Projection: We're trending $1,263,195 (1.3%) lower than forecasted, now projected at $94,044,574 (comparable to receiving $1.30 in change from a $100 purchase)

Looking Ahead:

• Net favorable impact to forecast: $2,695,483

• Projected ending cash balance (June 30, 2026): $38,549,336 (40.99% of projected expenditures)

• Overall projected cash spend-down: -$9,536,790

What's Driving These Numbers?

Revenues

December Snapshot:

• Revenues were $82,561 lower than last December

• State revenues increased by $21,369

• Other revenues decreased by $103,930, primarily due to lower advance returns from other funds ($84,658) and reduced interest income ($16,289) resulting from lower interest rates

Year-to-Date:

• The $3.25 million decrease is primarily due to property tax revenue from the expired renewal levy

• However, we have some positive news:

• State Foundation revenue is up $340,385 thanks to a performance bonus

• Other revenues are up $238,169 net, including a one-time county reimbursement of $882,559

• These gains are partially offset by decreases in interest income ($174,865) and TIF revenue ($235,768)

Why We're Trending Above Forecast: We're trending $1.43 million (1.72%) higher than forecasted due to revenues received after the forecast was prepared:

• County reimbursement: $882,559

• State Foundation performance bonus: $304,831

• Higher-than-estimated State Foundation transportation funding: $256,011 (actual dollars were released by ODE in December after October ridership reports were submitted)

Expenditures

December Snapshot:

• Expenditures were $147,661 higher than last December

• Salaries and benefits increased by $134,788

• Non-personnel expenses increased by $12,873

• These increases are primarily due to the timing of invoice payments, particularly for special education tuition and utilities

Year-to-Date:

• The $2.28 million (5.12%) increase over last year is driven by:

• Salaries and benefits: up $1,749,772 (4.63%)

• Non-personnel expenses: up $530,049 (7.88%), including:

• Professional services (nurses, OT/PT therapy): $135,392 higher

• Utilities: $193,250 higher

• Special education placements: $150,368 higher

• Textbooks: $188,711 higher

Why We're Trending Below Forecast: We're trending $1.26 million (1.3%) lower than the $95.3 million forecasted—about 1.3% of the total budget (comparable to receiving $1.30 in change from a $100 purchase). Here's why:

• Salaries and Benefits: $1,152,679 (1.44%) below forecast

• Salaries: $750,771 below forecast

• Benefits: $401,908 below forecast

Key variances include:

• Substitutes: $172,472 lower in salaries and $176,624 lower in benefits (full-time substitute positions remain unfilled as substitutes cover teacher leaves)

• SMS: $99,561 lower in salaries and $41,116 lower in benefits (due to parental leave, an open aide position being filled, and an unneeded intervention specialist position)

• Transportation: $115,879 lower in salaries and $74,154 lower in benefits (open positions from normal attrition)

• Workers' compensation annual premium: $47,050 less than estimated

• Non-personnel: Approximately $110,516 lower, primarily due to timing differences in encumbrance carryovers and payments

Important Context

Due to recent legislative changes, forecasts are now due earlier and must align with the district's annual budget. This year's forecast was due in October and prepared in September using August data—just two weeks into the school year. Next year, the forecast will be due in August before school starts.

The forecast is a fluid document that provides a fiscal roadmap of where we're heading. While there may be some twists and turns along the way, the reality remains: we are still deficit spending by approximately $10 million, and the funding cliff remains unchanged, with a cash deficit projected for fiscal year 2029.

Access the Full Reports:

• CLICK HERE to view the December 2025 Monthly Financial Status Report

• CLICK HERE to view the December 2025 Monthly Financial Status Report Supplement

• CLICK HERE for the September 2025 forecast presentation slidedeck

• CLICK HERE for the September 2025 forecast statements and assumptions

• CLICK HERE for the video of the September 25, 2025 BOE presentation.

For this months Q & A section, we have received the following questions from the community:

What is a "Mill" in property tax purposes?

In Ohio, school property taxes are calculated in “mills.” A mill represents $1 of tax for every $1,000 of a property’s assessed value.

It is important to note that property taxes in Ohio are not calculated on a home’s full market value. Instead, properties are taxed on 35% of their appraised market value, which is known as the assessed value.

Example:

• Home market value: $300,000

• Assessed value (35%): $105,000

• One mill = $1 per $1,000 of assessed value

• So, 1 mill on this home = $105 per year
  
  

If a school district’s effective tax rate is 27.23 mills, the school portion of the tax on this example home would be:

105 × 27.23 = $2,859.15 annually

The “effective” millage rate reflects the actual rate applied after state-mandated reductions (such as House Bill 920 credits) and other adjustments. This is why the effective rate is often lower than the originally voted millage.

What is the difference between a bond issue and an operating levy?

A bond issue, allows the district to issue bonds, which work like a mortgage loan, and use those proceeds to construct buildings. The bond levy dollars collected annually pay the principal and interest payments on those bonds, similar to a mortgage payment. The typical term is 35 to 37 years, and the levy dollars can only be used for that purpose.

An operating levy generates funds for the district's ongoing day-to-day expenditures, things like salaries, utilities, transportation, instructional materials, and other operational costs.

What's On Your Mind?

What topics are important to you? What would you like to have covered in a future Financial Fast Fact episode/newsletter? Scan the QR code below or CLICK HERE to complete the survey and/or submit a question.