Page 39 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
(UNAUDITED)

Debt Administration

At June 30, 2017, the District had $18,910,113 in general obligation bonds, certificates of participation and capital leases
outstanding. Of this total, $1,187,787 is due within one year and $17,722,326 is due in greater than one year. The
following table summarizes the District’s outstanding debt.

Outstanding Debt, at Year End

Governmental Governmental
Activities Activities
2017 2016
Energy Conservation Bonds $ 1,105,000 $ 1,305,000
Qualified School Construction Bonds 1,285,000 1,435,000
Certificates of Participation 16,165,000 16,785,000
Capital Leases 355,113 540,024
Total $ 18,910,113 $ 20,065,024

All bonds are general obligations of the District for which the full faith and credit of the District is pledged for
repayment. There were no additions to long-term debt in fiscal year 2017 and principal payments for the year were
$1,154,911.

See Note 8 in the notes to the basic financial statements for more information on the District’s debt administration.

Current Financial Related Activities

The District has carefully managed its general fund budgets in order to optimize the dollars available for educating the
students it serves, and to minimize the levy millage amounts needed periodically from the community’s citizens. The
general fund cash balance was $32,302,679 at June 30, 2017. Fiscal year-end general fund cash balances were
$29,016,141, $24,398,732, $19,504,427 and $15,585,850 at June 30 in fiscal years 2016, 2015, 2014 and 2013,
respectively. Sound fiscal management by the Board of Education and Administration has enabled the District to
maintain a healthy cash balance and continue a quality, comprehensive educational program.

Property taxes revenue is the District’s main source of revenue, comprising 64.7% of all cash receipts for the general
fund in fiscal year 2017. Property taxes are largely dependent upon assessed property values, which are determined by
the Summit County Fiscal Officer. Real property values totaled $948,759,150 in 2016 for calendar year 2017 tax
collections, and have increased $67,922,110 (7.71%) since 2012, the last time the County conducted a reappraisal. The
County is currently conducting another reappraisal which will be effective for calendar year 2018 tax collections.

The voters of the District passed an additional 4.9 mill operating levy in May 2011. Collections on this levy began in
calendar year 2012. The District’s 1.5 mill permanent improvement tax levy was renewed in May 2017 for another five
years. With Board guidance, the recent fiscal year budgets have been carefully managed in order to maintain the
integrity of the financial planning process, while being cognizant of future tax levy levels that are reasonable and in
accordance with the expected educational excellence of our community.

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