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HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016

(UNAUDITED)

Governmental Activities

Net position of the District’s governmental activities increased $5,222,381. Program revenues supported
13.24% of the total governmental expenses.

Total revenues for governmental activities decreased $1,742,941 or 2.40%. The primary sources of revenue for
governmental activities are derived from property taxes and unrestricted grants and entitlements. These two revenue
sources represent 86.56% of total governmental revenue. Grants and entitlements reported as general revenues consist
primarily of the unrestricted portion of the District’s State Foundation revenue. The decrease in property taxes revenue is
mostly due to fluctuations in the amount of tax collected and available for advance at fiscal year-end by the Summit
County Fiscal Officer. Tax advances available are recorded as revenue under GAAP. The amount of tax advances
available at June 30, 2016, 2015 and 2014 was approximately $9.2 million, $8.8 million and $6.4 million, respectively.
This amount can vary depending upon when the County Fiscal Officer distributes tax bills.

The overall increase in expenses was $1,581,325 or 2.47%. This increase is primarily a result of increased pension
expenses for the District due to the overall increase in net pension liability reported by the School Employees Retirement
System and the State Teachers Retirement System. The largest expense of the District is for instructional programs.
Instruction expenses totaled $38,633,579 or 58.96% of total governmental expenses for fiscal year 2016.

The following graph presents the District’s governmental activities revenues and expenses for fiscal years 2016 and
2015.

Governmental Activities - Revenues and Expenses

$75,000,000 $70,747,248 $72,490,189
$70,000,000
$65,000,000 $65,524,867 $63,943,542 Expenses
$60,000,000 Revenues
$55,000,000

2016 2015

The statement of activities shows the cost of program services and the charges for services and grants offsetting those
services. The following table shows, for governmental activities, the total cost of services and the net cost of services for
2016 and 2015. That is, it identifies the cost of these services supported by taxes revenue and unrestricted grants and
entitlements.

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