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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)

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 $24,398,732 at June 30, 2015. Fiscal year-end general fund cash balances were
$19,504,427, $15,585,850, $11,957,932 and $10,791,463 at June 30 in fiscal years 2014, 2013, 2012 and 2011,
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 65.9% of all cash receipts in fiscal year 2015.
Property taxes are largely dependent upon assessed property values, which are determined by the Summit County Fiscal
Officer. Real property values totaled $919,449,390 in 2014 for calendar year 2015 tax collections, and have increased
$38,612,350 (4.38%) since 2011 primarily because of the County’s triennial update of values that occurred in 2014. The
next reappraisal will be conducted in 2017.

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 November 2012 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.

The District’s second largest revenue source is unrestricted State aid from the State Foundation program. The State’s per
pupil funding formula generated 17.0% of all District receipts in fiscal year 2015. The District is on the funding
guarantee which means that the District will receive an adjusted total funding amount that is at least equal to the amount
received in fiscal year 2015, or approximately $10.4 million.

The District's per pupil valuation of $205,043 is 147.38% of the State average per pupil valuation of $139,128. It is this
ratio that drives the District's per pupil funding which calculates a State share of 21.31%. Districts with lower per pupil
valuation receive higher levels of State share of the $5,900 formula amount per pupil. In fiscal year 2016 the formula
calculates about $1,257 per pupil. The District's calculated formula funding is $8,717,513 and the District is guaranteed
$10,703,327. It is this guarantee of approximately $2.0 million that is subject to legislative reduction in future years.

The District has committed itself to educational and financial excellence for many years. The budgeting and internal
controls utilized by the District have resulted in unmodified audit opinions. Each challenge identified in this section is
viewed simultaneously as an opportunity for the District to foray down paths not previously traveled to continue its
commitment to excellence. The District is committed to living within its financial means, and working with the
community it serves in order to garner adequate resources to support the educational program. The Board will continue
to evaluate all aspects of its operations, making prudent decisions where appropriate, in order to maximize its resources
and offer excellent educational offerings.

Contacting the District’s Financial Management

This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of
the District’s finances and to show the District’s accountability for the money it receives. Questions about this report or
requests for additional financial information can be made by writing to Mrs. Kathryn Sines, Treasurer/CFO, Hudson City
School District, 2386 Hudson-Aurora Road, Hudson, Ohio 44236 or by calling (330) 653-1270.

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