Page 9 - Microsoft Word - CAFR Title Page

INTRODUCTION

The District And Its Facilities

The District serves an area of approximately 31 square miles in and around the City of Hudson (the “City”). It is located in
Summit County, approximately 28 miles southeast of downtown Cleveland and 14 miles north of Akron. The District is an
affluent suburban district that grew rapidly from 1980 to 2000 but has since leveled off. Nearly 100 percent of the City of Hudson
and portions of three other municipalities and a township are located within the District. They are: the City of Cuyahoga Falls, the
City of Stow, the Village of Boston Heights and Boston Township. Hudson’s population in 1980 was 12,645 residents. By 1990,
according to the U.S. Census Bureau, Hudson’s population had grown to 17,125 and the 2000 Census showed the population of the
City of Hudson was 22,439. The 2010 Census shows a population of 22,262.

Because of the rapid growth of Hudson and the surrounding area, the District recorded more than 19 consecutive years of
increasing enrollment until fiscal year 2000 when enrollment slowed. The District’s enrollment for fiscal year 2016 was 4,656
students. The District projects enrollment to slightly increase to 4,679 in 2021 and to 4,740 in 2027.

The District’s facilities include four elementary schools, one middle school (grades six to eight), one high school (grades nine to
twelve), a maintenance building, a bus garage, central offices residing in four houses, athletic fields and field houses. The ages of
the buildings vary from the oldest built in 1927 to the newest built in 2007. The majority of the District’s school buildings were
built before 1967.

Economic Condition And Outlook

Ohio’s unemployment rate was 5.0 percent in June 2016, and the nation’s unemployment rate for the same period was 4.9 percent.
Additionally, June 2016 employment in the Akron area was 349,200 with an unemployment rate of 4.9 percent. Specific
employment figures for the Hudson City School District are not available. (Ohio Department of Job and Family Services, U.S.
Bureau of Labor Statistics.)

Hudson is the headquarters for JoAnn Stores, Inc., for MeyerDC, and is also home to the division headquarters of Little Tikes Co.,
Caliber Logistics, Inc. (Federal Express), and Allstate Insurance. Arhaus Corporation headquarters is located in Boston Heights
within the Hudson City School District boundaries.

On a budgetary-basis, the District receives approximately 67 percent of its total general operating fund revenues from local
property tax collections. Therefore, the long-term financial health of the District is very dependent on its tax base. Tax rates are
certified by the Summit County Auditor’s Office and Board of Education approved. This year’s rates were Board approved on
March 9, 2016.

The District has an excellent relationship with the City of Hudson, which assures that commercial development projects selected
by the City are also highly desirable for the District. When the City of Hudson uses an inducement to attract a business, the City
seeks the input of the School District to see the impact an abatement would cause. The District will continue to work with the City
of Hudson to attract desirable development to the community.

Long-Term Financial Planning

The District prepares a five-year financial forecast annually for use as a tool for long range planning. The five-year forecast
contains projected local and state revenues, spending patterns within each area of the budget, and cash balances in the District’s
operating fund. The five-year forecast provides early warning signs of potential financial problems.

The District uses the five-year forecast to provide a basis for making financial decisions, including the construction of the annual
budget, adjustments to staffing levels, collective bargaining, and the placement of tax levies on the ballot. A specific example of
long range planning is the facilities study committee which will make recommendations to the superintendent regarding facilities
utilization, rationale of learning environments, and operational efficiencies.

HUDSON CITY SCHOOL DISTRICT

I5