Page 26 - Hudson CAFR Report 2018

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

(UNAUDITED)

The management’s discussion and analysis of Hudson City School District’s (the “District”) financial performance
provides an overall review of the District’s financial activities for the fiscal year ended June 30, 2018. The intent of this
discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the
transmittal letter, the basic financial statements and the notes to the basic financial statements to enhance their
understanding of the District’s financial performance.

Financial Highlights

Key financial highlights for 2018 are as follows:

 In total, net position increased $37,456,221 from 2017’s net position, as restated. Net position of governmental
activities increased $37,194,494 and net position of business-type activities increased $261,727.

 Total governmental activities revenues were $76,672,757. General revenues related to governmental activities
accounted for $67,718,315 or 88.32% of all revenues. Program specific revenues related to governmental activities
in the form of charges for services and sales, grants and contributions accounted for $8,954,442 or 11.68% of total
revenues.

 The District had $39,478,263 in expenses related to governmental activities; only $8,954,442 of these expenses was
offset by program specific charges for services, grants or contributions. General revenues supporting governmental
activities (primarily taxes and unrestricted grants and entitlements) of $67,718,315 were adequate to provide for
these programs.

 The District had $1,318,933 in expenses related to business-type activities; program specific revenues in the form of
charges for services amounted to $1,492,116. Business-type activities also received general revenues of $88,544 in
the form of grants.

 The District’s major governmental funds are the general fund and the building fund. The general fund had
$65,747,757 in revenues and other financing sources and $63,077,839 in expenditures and other financing uses.
This resulted in an increase in fund balance from $30,850,123 to $33,520,041.

 The building fund had $83,372,348 in revenues and other financing sources and $1,838,665 in expenditures and
other financing uses, resulting in an increase in fund balance of $81,533,683.

 The District issued general obligation bonds in fiscal year 2018 in the amount of $81.55 million. The bond proceeds
are being used to finance various capital improvements throughout the District, including the construction of a new
middle school.

Using the Comprehensive Annual Financial Report (CAFR)

This annual report consists of a series of financial statements and notes to those statements. These statements are
organized so the reader can understand the District as a financial whole, or as an entire operating entity. The statements
then proceed to provide an increasingly detailed look at specific financial activities.

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