Page 103 - Hudson CAFR Report 2018

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

NOTE 18 - OTHER COMMITMENTS

The District utilizes encumbrance accounting as part of its budgetary controls. Encumbrances outstanding
at year end may be reported as part of restricted, committed, or assigned classifications of fund balance. At
year end, the District’s commitments for encumbrances in the governmental funds were as follows:

Fund Year-End
General fund Encumbrances
Building fund $ 853,909
Nonmajor governmental funds
440,102
Total 93,523

$ 1,387,534

NOTE 19 - TAX ABATEMENTS ENTERED INTO BY OTHER GOVERNMENTS

The City of Hudson and the Village of Boston Heights have entered into agreements with local businesses
for the abatement of property taxes to bring jobs and economic development into the area. These
agreements affect the property tax receipts collected and distributed to the District. As a result of the
agreements, the District’s property tax revenues were reduced by $1,193,454 during fiscal year 2018. The
District received $658,751 as compensation for the foregone taxes, which is recorded as payment in lieu of
taxes revenue in the general fund.

F 82