Financial Fast Facts-The Newsletter

Welcome to the third 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, videos and newsletters, CLICK HERE or scan the QR code below.

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

How is the District spending down its cash reserves, and will any of it be used for the proposed bond issue?

Our community recently did not vote to approve the renewal of our May 2019 operating levy. As a result, our District has experienced a reduction in annual revenue of approximately $10 million. As outlined in our February Financial Forecast, this loss of revenue has resulted in deficit spending - over $3 million last year, with a projected deficit spend of approximately $10 million this year. If this trend continues over the next two school years, the District is projected to enter a cash deficit by the 2028–2029 school year if no corrective action is taken.

Based on the February 2026 forecast, within the Operating Fund (General Fund), the District is projected to end the fiscal year on June 30, 2026 with a cash balance of $36,247,203, which represents 38.66% of projected expenditures.

This reflects an overall cash reduction of $9,838,929 for FY 2026, as expenditures are currently exceeding revenues. On average, this equates to a daily spend-down of approximately $26,956.

See the graphics below for additional details.

Fund 070 Capital Projects - As of February 2026, the District has $21,434,784 set aside in a Fund 070 Capital Projects Fund that the Board has committed for the following projects, associated with the upcoming Bond Issue:

• $10,500,000 - Reduce Bond Request to the community
  

• $ 8,000,000 - Investment in arts and athletics facilities

• $2,100,000 - SMS & SHS Performing Arts Upgrades

• $2,700,000 - SHS & SMS Stadium Upgrades

• $3,200,000 - SHS Baseball / Softball Project

• $ 2,500,000 - Pay off Muraski Debt to allow for the Muraski renovation

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.

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, February represents 66.67% of the fiscal year (8 out of 12 months completed).

February 2026 Financial Highlights

* Cash Position:

• Month-end cash balance: $32,556,481

• This is down $14,846,009 (32.82%) from last year
  
  

* Revenue Update:

• Year-to-Date: Revenues totaled $46,094,103—down $8,766,959 (15.98%) from last year's $54,861,062

• Fiscal Year Projection: We're trending $1,200,767 (1.43%) lower than forecasted, now projected at $82,859,012

* Expenditure Update:

• Year-to-Date: Expenditures totaled $61,623,753—up $2,865,918 (4.88%) from last year

• Fiscal Year Projection: We're trending $4,984 (1.3%) higher than forecasted, now projected at $93,898,708
  
  

* Looking Ahead:

• Net unfavorable impact to forecast: -$1,205,752

• Projected ending cash balance (June 30, 2026): $37,041,451 (39.45% of projected expenditures)

• Overall projected cash spend-down: -$11,044,680

What's Driving These Numbers?

REVENUES

February Snapshot:

• Revenues were $5,713,134 lower than last February

• February Tax advance was $5,760,00 lower than last February

• State revenues increased by $103,786

• Other revenues decreased by $56,920, primarily due to reduced interest income ($66,875) resulting from lower interest rates and decreased cash available for investment
  
  

Year-to-Date:

• The $8.77 million decrease is primarily due to a decline in the February property tax advance and a decrease in overall tax revenue resulting from the expired renewal levy.

• However, we have some positive news:

• State Foundation revenue is up $506,964 primarily due to the performance bonus

• Other revenues are up $219,531 net, including a one-time county reimbursement of $882,559

• These gains are partially offset by decreases in interest income ($313,293) and TIF revenue ($235,768)
  
  

Why We're Trending Below Forecast: We're trending $1.200 million (1.43%) lower than forecasted primarily due to final tax settlement results received in March:

• Residential and commercial tax collections are $856,379 lower than expected

• Public utility tax collections are $463,057 lower than expected

EXPENDITURES

February Snapshot:

• Expenditures were $355,306 higher than last February

• Salaries and benefits increased by $139,370

• Non-personnel expenses increased by $215,936

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

Year-to-Date:

• The $2.87 million (4.88%) increase over last year is driven by:

• Salaries and benefits: up $2,012,71 (3.98%)

• Non-personnel expenses: up $853,176 (10.35%), including:

• Professional services (nurses, OT/PT therapy): $72,522 higher

• Utilities: $155,242 higher

• Special education placements: $384,089 higher

• Textbooks: $181,757 higher
  
  

Why We're Trending Below Forecast: We're trending $4,984 (0.01%) higher than the $93.9 million forecast

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 February 2026 Monthly Financial Status Report

• CLICK HERE to view the February 2026 Monthly Financial Status Report Supplement

• CLICK HERE for the February 2026 forecast presentation slidedeck

• CLICK HERE for the February 2026 forecast statements and assumptions

• CLICK HERE for the video of the February 23, 2026 BOE presentation.

February Forecast for Strongsville City Schools

The general fund February forecast was presented and approved by the Board of Education at their February 23, 2026 meeting and submitted to the Ohio Department of Education and Workforce.

Due to legislative changes in the state’s biennial budget, forecast deadlines have shifted earlier. This past fall’s forecast was due by October 15 rather than the previous deadline of November 30. Since this fall was a transition year, future and fall submissions will be due even earlier-in August. Similarly, spring forecasts are now due in February instead of May.

Revenues for the current fiscal year, FY2026 are estimated at $84.1 million—a decrease of $2.5 million, or 2.90%:

• Between FY2021 and FY2025, annual revenues averaged $86.9 million with minimal growth. However, a significant change occurred in the second half of FY2025: our 2019 renewal levy expired, resulting in an annual revenue loss of $9.9 million.

• This $9.9 million reduction accounts for the substantial revenue decrease in FY2026 and will continue to impact future years.

• Of our total revenues of $84.1 million, only $10.5 million—or 12%—comes from the state funding formula. Nearly 77% of our total funding is generated from local property taxes, which means our school district is heavily reliant on community support for operations.

• The district has another renewal levy generating $8.3 million annually that expires in FY2028. Originally approved by voters in 2002, this levy's collections will cease after December 31, 2027, if not renewed.
  
  

Expenditures for the current fiscal year, FY2026 are estimated at $93.9 million—an increase of $4.1 million, or 4.6%:

• Over the past five fiscal years (FY2021-FY2025), expenditures increased at an average annual rate of 6.5%. Future projections (FY2026 onward) estimate a moderated growth rate of 3.6% annually.

• These increases are driven by: additional staff needed for growing enrollment and student needs, competitive salaries, rising healthcare costs, higher utility expenses, and general inflation in goods and services.
  
  

Our District is entering a period of deficit spending, where annual expenditures will exceed revenues, requiring us to draw down cash reserves. The February 2026 forecast for the general operating fund projects FY2026 revenues of $84.1 million dollars against expenditures of $93.9 million dollars—a gap of $9.8 million.

As you see in the chart below, the gap continues to increase in each of the following fiscal years.

Cash Balance fiscal year 2026, the ending cash balance is projected to be approximately $38.3 million, which represents 38.66% of expenditures.

As expenditures continue outpacing revenues, the district will deplete its cash reserves. Current projections show this deficit gap widening each year, leading to a projected cash deficit of negative $15.0 million in FY2029.

For additional details on the fall forecast and annual budget, see the following links:

• CLICK HERE for the February 2026 forecast presentation slidedeck

• CLICK HERE for the February 2026 forecast statements and assumptions

• CLICK HERE for the video of the February 23, 2026 BOE presentation.