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HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015

(UNAUDITED)

General Fund Budgeting Highlights

The District’s budget is prepared according to Ohio law and is based on accounting for certain transactions on a basis of
cash receipts, disbursements and encumbrances. The District uses site-based budgeting and the budgeting systems are
designed to tightly control total site budgets but provide flexibility for site management. The most significant budgeted
fund is the general fund.

For the general fund, both the original and final budgeted revenues and other financing sources were $65,515,324.
Actual revenues and other financing sources were $61,201,933, or $4,313,391 lower than the final budget. This large
variance is mostly due to over budgeting property taxes and State Foundation revenue.

General fund original and final budget appropriations (expenditures and other financing uses) were $59,713,380. The
actual budget basis expenditures and other financing uses for fiscal year 2015 totaled $57,507,690, which is $2,205,690
less than the final budget appropriations. The District routinely appropriates more resources than actually projected in
order to reflect what expenditures would be in a worst-case scenario.

Capital Assets and Debt Administration

Capital Assets

At the end of fiscal year 2015, the District had $57,382,419 invested in land, construction in progress, land
improvements, buildings and improvements, furniture and equipment, vehicles and computer software. This entire
amount is reported in governmental activities. The following table shows fiscal year 2015 balances compared to 2014:

Capital Assets at June 30
(Net of Depreciation)

Governmental Activities

Land 2015 2014
Construction in progress (CIP)
Land improvements $ 1,032,204 $ 1,032,204
Building and improvements 322,179 523,955
Furniture and equipment
Vehicles 4,325,124 4,329,314
Computer software 46,912,197 45,605,270

Total 3,414,797 3,425,574
1,252,617 1,138,088

123,301 243,345

$ 57,382,419 $ 56,297,750

The net increase in capital assets is a result of acquisitions of $3,277,368 exceeding depreciation expense of $2,168,691
and disposals (net of accumulated depreciation) of $24,008. The most significant acquisition in fiscal year 2015 was the
construction of a new athletic center which cost approximately $2.2 million. Construction in progress at June 30, 2015
consists of a tennis court improvements project.

The following graphs show the breakdown of governmental activities capital assets by category for 2015 and 2014.

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