Page 93 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017

NOTE 16 - BUDGETARY BASIS OF ACCOUNTING - (Continued)

The adjustments necessary to convert the results of operations for the year on the budget basis to the GAAP
basis for the general fund is as follows:

Net Change in Fund Balance

General fund
Budget basis $ 2,457,473
Net adjustment for revenue accruals (4,017,319)
Net adjustment for expenditure accruals (7,689)
Net adjustment for other sources/uses (64,715)
Funds budgeted elsewhere 121,975
Adjustment for encumbrances 771,206
GAAP basis $ (739,069)

Certain funds that are legally budgeted in separate special revenue funds are considered part of the general
fund on a GAAP basis. This includes the rotary fund, public school support fund and special trust fund.

NOTE 17 - COOPERATIVE AGREEMENT

In 2004, the City of Hudson and the District entered into a cooperative agreement to dedicate 13.5 percent
of the revenues that are collected annually from an additional 1 percent municipal income tax levy to
provide for the acquisition, construction, equipping, furnishing, financing, and the operation and
maintenance of Community Learning Centers. The District is considered the owner of the improvements to
the Community Learning Centers. The agreement shall remain for so long as a portion of the municipal
income tax is being levied for the purpose of providing dedicated tax revenues, or for such time as debt
issued to finance costs associated with the Community Learning Centers is outstanding, whichever period
ends later.

The City of Hudson shall make payments to the District in an amount sufficient to enable the District to
make timely debt service payments on the Certificates of Participation that were issued by the District to
finance improvement costs associated with the Community Learning Centers. The City of Hudson shall
also make payments to the District in which the funds will be applied to pay costs of improvements to the
Community Learning Centers, as detailed in the agreement. The District received $1,403,079 from the City
of Hudson during fiscal year 2017 as a result of this agreement. This revenue is reported in the building
fund and debt service fund, both of which are nonmajor governmental funds.

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