wednesday, june 24, 2020 8:00am – regular meeting agenda of... · meeting will be held using...

Wednesday,June24,2020 Meetingwillbeheldusingvideoconferencingtechnology,outofrespectforthestate’sstay-at-homeorderdue

totheCOVID-19pandemic.Themeetingwillbestreamedliveviathedistrict’sYouTubeChanneltoensurethatmembersofthepublicmayattendthemeetingvirtually.

8:00am–RegularMeeting I. MeetingCalledtoOrder/RollCall

II. Additionsto/ApprovalofAgenda III. CommunicationstotheBoard a. RemarksbySuperintendent,Dr.PaulImhoff b. UpperArlingtonEducationAssociation

IV. PublicParticipation—30minutesmaximum

TheUpperArlingtonBoardofEducationispleasedtowelcomecommunitymembersandreservestimesforpublicparticipationduringeachofitsregularmeetings.Publicparticipationsessionswillcontinueinthevirtualsetting.ConsistentwithBoardBylaw0169.1,pleaseconsiderthefollowingifyouareinterestedinprovidingacommentduringtheBoardofEducationmeeting.

• Publicparticipationshallbepermittedasindicatedontheorderofbusiness(agenda);• Attendeesmustregistertheirintentiontoparticipateinthepublicportionofthemeetingbyemailing

[email protected],addressandtopicofcommentnolaterthan4p.m.onTuesday,June23,2020;

• Participantswillbecontactedbyadistrictemployeetocoordinateparticipationinthevirtualmeeting;• Participationrequestsreceivedafter4p.m.onJune23,2020willbeincorporatedintothenextregularmeetingofthe

UpperArlingtonBoardofEducation;• Participantsmustberecognizedbythepresidingofficerandwillberequestedtoprefacetheircommentsbyan

announcementoftheirname,address,andgroupaffiliation,ifandwhenappropriate; • Eachstatementmadebyaparticipantshallbelimitedtofive(5)minutesduration,unlessextendedbythepresiding

officer; • Noparticipantmayspeakmorethanonceonthesametopicunlessallotherswhowishtospeakonthattopichave

beenheard;• Allstatementsshallbedirectedtothepresidingofficer;nopersonmayaddressorquestionBoardmembersindividually;• Thepresidingofficermayprohibitcommentsthatarefrivolous,repetitive,and/orharassingandinterrupt,warnor

terminateaparticipant’sstatementwhenitistoolengthy,personallydirected,abusive,off-topicantagonistic,obscene,orirrelevant;and

• Theportionofthemeetingduringwhichtheparticipationofthepublicisinvitedshallbelimitedtothirty(30)minutes,unlessextendedbyavoteoftheBoard.

BoardPolicy0169.1maybereadinisentiretyonthedistrictwebsite:www.uaschools.org

V. ItemsforInformation 1. Superintendent’supdate a. Diversity,EquityandInclusionupdate

2. Treasurer’supdate a. FiveYearForecastRevision

June24,2020

VI. ConsentAgenda–TheSuperintendentrecommendsthefollowingitemsforaction:

A. Superintendent B. Fiscal 1. FinalFY20Appropriations—ExhibitB-1 2. TemporaryFY21Appropriations—ExhibitB-2 3. ApprovalofRevisedFive-YearForecastandassumptions—ExhibitB-3 4. Transfers/Advances—ExhibitB-4 5. Contracts

� RenewalofcontractwithMcKeonEducationGroupforSt.AndrewSchoolforFY20-21inanamountnottoexceed$118,000.ThiscontractispaidwithfundsallocatedtoSt.Andrew.

� ContractwithColumbusSpeechandHearingCenterforSt.AndrewforFY20-21inanamountnottoexceed$64,800.ThiscontractispaidwithfundsallocatedtoSt.Andrew.

� ContractwithColumbusTherapyAssociatesforSt.AndrewforFY20-21occupationaltherapyservicesat$75/hr.ThiscontractispaidwithfundsallocatedtoSt.Andrew.

� RenewalofcontractwithEducationProjectsandPartnershipsLLCforFY20-21inanamountnottoexceed$44,250. C. HumanResources 1. CertifiedStaff a. LeaveofAbsence Name Position AmountofLeave Reason EffectiveDate WhitneySchumacher Teacher 1.0 ChildcareLeave 08/17/2020-09/11/2020

2. ClassifiedStaff a. ChangeofStatus

Name CurrentPosition NewPosition Step EffectiveDate

KimGard Secretary(10month) Secretary(12month) 5 06/22/2020

b. One-yearextensionofcollectivebargainingagreementbetweenOAPSE,LocalChapter201andtheUpperArlingtonBoardofEducation,July1,2020throughJune30,2021

3. OtherStaff a. AcceptanceofResignation

Name Position Reason EffectiveDate

KristinaL.Garrison ExecutiveAssistant Resignation 07/03/2020

b. InitialAppointment*

Name Position Step EffectiveDate MaxKoontz TechnologySupportTechnician 2 07/06/2020 * Allappointmentsofpersonnelarespecificallyconditionedonandsubjecttosuccessfulbackgroundchecks,receiptand

finaladministrativereviewofallapplicationrecordsandreceiptofallothernecessarydocumentation. 4. BurbankEarlyChildhoodSchools:(BECS) � ProgramChangeResolution—ExhibitC-1

� BECSStaffReductionResolution—ExhibitC-2

� AbolishmentofBECSpart-timereceptionistpositionresolution—ExhibitC-3

� AbolishmentofBECShealthaidepositionresolution—ExhibitC-4

5. BoardPolicies—ExhibitC-5

June24,2020

6. SupplementalContracts Position Employee School Amount FTE 7thGradeHeadGirlsVolleyballCoach LydiaShivers Hastings $2,729.00 HeadCrossCountryCoach KellyRepicky Hastings $2,384.00 HeadGirlsTennisCoach CarolynLombardo Hastings $1,791.00 HeadBoysGolfCoach RickWickiser Hastings $3,430.00 8thGradeHeadFootballCoach AdamOliver Jones $7,627.00 8thGradeHeadGirlsVolleyballCoach KaraCulp Jones $3,430.00 HeadCrossCountryCoach GrantRiesen Jones $3,430.00 HeadGirlsGolfCoach MarkJohnston Jones $4,163.00 HeadBoysGolfCoach NickJudy Jones $3,779.00 Co-8thGradeHeadFootballCoach VincentDeMaria Hastings $3,087.00 7thGradeAssistantFootballCoach BrianHardesty Jones $3,155.75

7. PupilActivityProgramContracts* Position Name School Amount FTE 8thGradeHeadFieldHockeyCoach JacquelineDeLaney Jones $2,661.00 Co-8thGradeHeadFootballCoach DujuanWhite Hastings $2,516.50 8thGradeAssistantFootballCoach TylerTanner Hastings $1,791.90 8thGradeAssistantFootballCoach GaryDarby Hastings $1,432.35 7thGradeAssistantFootballCoach PatrickDimmick Hastings $2,866.00 7thGradeAssistantFootballCoach JeromeTurner Hastings $2,068.95 7thGradeHeadFootballCoach VinceLyons Hastings $3,595.00 7thGradeHeadCheerFootballCoach KendallColombo Hastings $1,791.00 8thGradeHeadCheerFootballCoach ErinTossey Hastings $1,791.00 8thGradeHeadBoysSoccerCoach DanteBayliss-Garcia Hastings $3,430.00 7thGradeHeadBoysSoccerCoach BlakeHolder Hastings $2,384.00 8thGradeHeadGirlsSoccerCoach KendallMitchell Hastings $2,384.00 8thGradeHeadGirlsVolleyballCoach PhilNagy Hastings $2,729.00 HeadGirlsGolfCoach KatherineGuertin Hastings $2,384.00 7thGradeCo-HeadFieldHockeyCoach JessicaSaffell Hastings/Jones $1,791.00 7thGradeCo-HeadFieldHockeyCoach SamanthaWelsh Hastings/Jones $1,791.00 SiteManager MattRice Hastings $675.00 SiteManager MitchellBodden Hastings $675.00 8thGradeAssistantFootballCoach KarlSevers Jones $1,034.47 7thGradeHeadFootballCoach KyleRoberts Jones $4,410.00 7thGradeAssistantFootballCoach BryanFerres Jones $2,866.50 8thGradeAssistantFootballCoach ChuckYoder Jones $2,866.50 7thGradeAssistantFootballCoach JamesFout Jones $1,034.47 7thGradeHeadCheerFootballCoach MaryKateKeethler Jones $1,791.00 8thGradeHeadCheerFootballCoach LeslieRogers Jones $1,791.00 8thGradeHeadBoysSoccerCoach IgnacioGarcia Jones $4,575.00 7thGradeHeadBoysSoccerCoach DaveBlamo Jones $2,729.00 8thGradeHeadGirlsSoccerCoach GraceffaSantina Jones $2,384.00 7thGradeHeadGirlsVolleyballCoach SydneyMasters Jones $2,384.00 AssistantCrossCountryCoach ZacharyCarley Jones $1,773.85 SiteManager MindyBean Jones $675.00 SiteManager NoahTornes Jones $675.00 * Allappointmentsofpersonnelarespecificallyconditionedonandsubjecttosuccessfulbackgroundchecks,receiptandfinaladministrative

reviewofallapplicationrecordsandreceiptofallothernecessarydocumentation.

June24,2020

D. Operations 1. ApprovaltoSell/Dispose/DonateEquipment DescriptionofAsset/Quantity Building/Department UACSDTagand/orSerialNumber

UASCDTagand/orserialnumber Reason

ElementaryImprovements Windermere 20120012 Demolished Carpet Windermere 20160018 Demolished Roof Windermere 20170024 Demolished GasLine Windermere 20180006 Demolished ElementaryAddition Windermere 20603428 Demolished ElementaryAddition Windermere 20603429 Demolished ElementaryAddition Windermere 20603430 Demolished ElementaryAddition Windermere 20603431 Demolished GasMeter Windermere 20603467 Demolished ElementarySchool Windermere 20603978 Demolished Monitor Graf 101187 Broken AppleComputer Graf 110888 Broken Ipad Graf 113668 Obsolete iPad Graf IUAS000135961P Obsolete KodakCamera Graf 111226 Obsolete AcerMonitor Graf 111366 Obsolete HP2420Copier Graf 005876,004724,004723,005863,100490,

004727,004719,004726,005864, Obsolete

HP2430Copier Graf 100438 Obsolete HP4100Copier Graf 000977 Obsolete HP4250Copier Graf 005865,104011,102181,60714,60692 Obsolete HP4350Copier Graf 104014,101117,104012 Obsolete AppleiMac20inch Graf 111701 Obsolete Smartboard Graf 103606 Obsolete Smartboard Graf 103607 Obsolete Smartboard Graf 103053 Obsolete iPadAir2 Graf 113951 Damaged iMac Graf 112908 Damaged DocumentCamera Graf 102409 Obsolete DocumentCamera Graf 104232 Obsolete Projector Graf 113285 Damaged Projector Graf 005862 Obsolete Projector Graf 005575 Obsolete Tripod Graf 102888 Obsolete Projector Graf 103322 Damaged DocumentCamera Graf 102406 Obsolete iMac Graf 112718 Damaged iMac Graf 112728 Damaged iMac Graf 112789 Damaged DellMonitor Graf 102928 Obsolete DellMonitor Graf 101240 Obsolete DocumentCamera Graf 101802 Broken DocumentCamera Graf 006498 Broken Projector Graf 103409 Broken imac Graf 112865 Damaged iBookG4(laptop) Graf 005528 Obsolete 2. Contracts

�Renewalofproperty,casualtyandliabilityinsurancewithLibertyMutualInsuranceandcyberliabilityinsurancewithTravelersInsurance—ExhibitD-1

� RenewalofexcessworkerscompensationinsurancewithBenchmarkInsuranceCompany—ExhibitD-2 VII. Other VIII. Adjournment

Date: 06/23/20 Upper Arlington City Schools Page 1Time: 12:45 pm Appropriation Resolution Report (APPRES)

001 GENERAL 98,742,026.96 002 BOND RETIREMENT 20,669,346.62 003 PERMANENT IMPROVEMENT 4,090,521.35 004 BUILDING 89,315,301.62 006 FOOD SERVICE 1,805,583.41 007 SPECIAL TRUST 39,101.44 009 UNIFORM SCHOOL SUPPLIES 143,115.70 018 PUBLIC SCHOOL SUPPORT 268,692.79 019 OTHER GRANT 336,875.27 020 SPECIAL ENTERPRISE FUND 3,149,196.42 022 DISTRICT AGENCY 66,595.89 024 EMPLOYEE BENEFITS SELF INS. 11,491,571.91 026 EMPLOYEE BENEFITS AGENCY FUND 1,246,060.62 027 WORKMANS COMPENSATION-SELF INS 10,000.00 070 CAPITAL PROJECTS 5,133,932.00 200 STUDENT MANAGED ACTIVITY 172,798.78 300 DISTRICT MANAGED ACTIVITY 874,387.55 401 AUXILIARY SERVICES 459,784.47 499 MISCELLANEOUS STATE GRANT FUND 4,770.10 507 ELEM/SECONDARY SCH EMER RELIEF 117,386.00 516 IDEA PART B GRANTS 1,940,654.79 551 LIMITED ENGLISH PROFICIENCY 24,838.70 572 TITLE I DISADVANTAGED CHILDREN 408,114.20 590 IMPROVING TEACHER QUALITY 124,837.41 599 MISCELLANEOUS FED. GRANT FUND 31,178.47

Grand Total All Funds 240,666,672.47

Exhibit B-1June 24, 2020

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2019-20 Final Appropriations

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Date: 06/23/20 Upper Arlington City Schools Page 1Time: 2:12 pm Appropriation Resolution Report (APPRES)

001 GENERAL 102,376,872.27 002 BOND RETIREMENT 18,900,059.48 003 PERMANENT IMPROVEMENT 2,591,954.50 004 BUILDING 3,878,545.42 006 FOOD SERVICE 1,528,980.92 007 SPECIAL TRUST 131,825.00 009 UNIFORM SCHOOL SUPPLIES 219,836.00 018 PUBLIC SCHOOL SUPPORT 385,000.00 019 OTHER GRANT 549,372.87 020 SPECIAL ENTERPRISE FUND 1,483,863.25 022 DISTRICT AGENCY 62,000.00 024 EMPLOYEE BENEFITS SELF INS. 12,083,325.00 026 EMPLOYEE BENEFITS AGENCY FUND 1,360,000.00 027 WORKMANS COMPENSATION-SELF INS 5,000.00 070 CAPITAL PROJECTS 1,920,139.95 200 STUDENT MANAGED ACTIVITY 315,645.46 300 DISTRICT MANAGED ACTIVITY 990,602.31 401 AUXILIARY SERVICES 110,013.08 467 STUDENT WELLNESS AND SUCCESS 172,993.23 499 MISCELLANEOUS STATE GRANT FUND 4,335.00 507 ELEM/SECONDARY SCH EMER RELIEF 304,438.98 516 IDEA PART B GRANTS 1,946,321.76 551 LIMITED ENGLISH PROFICIENCY 27,762.81 572 TITLE I DISADVANTAGED CHILDREN 435,876.67 587 IDEA PRESCHOOL-HANDICAPPED 27,553.82 590 IMPROVING TEACHER QUALITY 106,275.04 599 MISCELLANEOUS FED. GRANT FUND 32,615.51

Grand Total All Funds 151,951,208.33

Exhibit B-2June 24, 2020

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2020-21 Temporary Appropriations

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UPPER ARLINGTON CITY SCHOOL DISTRICT ‐ ‐ FRANKLIN COUNTYSchedule Of Revenue, Expenditures and Changes In Fund Balances

Actual and Forecasted Operating Fund

ACTUAL FORECASTEDFiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

2017 2018 2019 2020 2021 2022 2023 2024Revenue:

1.010 ‐ General Property Tax (Real Estate) 68,856,634 76,125,020 72,034,093 77,276,510 77,107,124 77,742,929 79,059,222 80,262,169 1.020 ‐ Public Utility Personal Property 2,582,307 2,682,905 2,875,000 3,056,571 3,127,936 3,127,945 3,127,945 3,127,945 1.035 ‐ Unrestricted Grants‐in‐Aid 4,140,220 4,223,849 4,263,513 3,696,570 2,054,931 2,126,328 2,302,045 2,315,613 1.040 ‐ Restricted Grants‐in‐Aid 42,810 51,723 54,163 65,196 55,000 55,000 55,000 55,000 1.050 ‐ Property Tax Allocation 8,964,542 9,015,764 8,989,092 8,994,353 9,127,086 9,246,563 9,284,951 9,351,936 1.060 ‐ All Other Operating Revenues 2,997,358 3,070,182 4,901,988 5,204,152 3,301,000 3,181,000 3,031,000 2,981,000

1.070 ‐ Total Revenue 87,583,871 95,169,444 93,117,850 98,293,352 94,773,077 95,479,765 96,860,163 98,093,663 Other Financing Sources:

2.040 ‐ Transfers‐In ‐ ‐ 437,761 ‐ ‐ ‐ ‐ ‐ 2.050 ‐ Advances‐In 177,524 88,798 88,308 138,750 2,213,500 1,070,000 150,000 150,000 2.060 ‐ All Other Financing Sources 20,236 56,915 6,175 20,000 20,000 20,000 20,000 20,000 2.070 ‐ Total Other Financing Sources 197,760 145,713 532,244 158,750 2,233,500 1,090,000 170,000 170,000

2.080 ‐ Total Revenues and Other Financing Sources 87,781,631 95,315,157 93,650,094 98,452,102 97,006,577 96,569,765 97,030,163 98,263,663 Expenditures:

3.010 ‐ Personnel Services 50,868,565 53,346,604 56,406,658 57,747,000 60,997,000 63,223,000 64,714,000 66,802,000 3.020 ‐ Employees' Retirement/Insurance Benefits 18,389,255 19,110,408 19,736,830 20,447,000 21,942,000 22,658,000 23,813,000 25,080,000 3.030 ‐ Purchased Services 11,391,740 12,290,902 13,130,502 13,329,356 14,908,150 15,448,200 16,147,600 17,094,100 3.040 ‐ Supplies and Materials 1,853,599 2,013,219 2,079,822 2,106,127 2,412,600 2,481,100 2,451,600 2,521,100 3.050 ‐ Capital Outlay 117,986 144,872 303,591 218,000 200,000 210,000 221,000 232,000 4.300 ‐ Other Objects 1,304,899 1,331,691 958,286 1,375,000 1,437,900 1,482,700 1,516,400 1,550,800

4.500 ‐ Total Expenditures 83,926,044 88,237,697 92,615,689 95,222,483 101,897,650 105,503,000 108,863,600 113,280,000 Other Financing Uses

5.010 ‐ Operating Transfers‐Out 78,350 78,312 920,041 57,663 425,000 80,000 80,000 80,000 5.020 ‐ Advances‐Out 83,634 88,308 138,750 2,213,500 1,070,000 150,000 150,000 150,000 5.030 ‐ All Other Financing Uses ‐ 5,572 ‐ ‐ ‐ ‐ ‐ ‐ 5.040 ‐ Total Other Financing Uses 161,984 172,192 1,058,791 2,271,163 1,495,000 230,000 230,000 230,000

5.050 ‐ Total Expenditures and Other Financing Uses 84,088,028 88,409,889 93,674,480 97,493,646 103,392,650 105,733,000 109,093,600 113,510,000 Excess of Rev & Other Financing Uses Over (Under) 6.010 ‐ Expenditures and Other Financing Uses 3,693,603 6,905,268 (24,386) 958,456 (6,386,073) (9,163,235) (12,063,437) (15,246,337)

Cash Balance July 1 ‐ Excluding Proposed Renewal/7.010 ‐ Replacement and New Levies 39,456,015 43,149,618 50,054,886 50,030,501 50,988,957 44,602,884 35,439,649 23,376,212

7.020 ‐ Cash Balance June 30 43,149,618 50,054,886 50,030,501 50,988,957 44,602,884 35,439,649 23,376,212 8,129,875

8.010 ‐ Estimated Encumbrances June 30 770,412 787,092 738,171 1,282,000 1,000,000 850,000 850,000 850,000

Reservations of Fund Balance:9.030 ‐ Budget Reserve 20,981,511 22,059,424 23,153,922 23,806,000 13,247,000 13,715,000 14,152,000 14,726,000

15.010 ‐ Unreserved Fund Balance June 30 21,397,695 27,208,370 26,138,407 25,900,957 30,355,884 20,874,649 8,374,212 (7,446,125)

See accompanying summary of significant forecast assumptions and accounting practices. Board Approved ____________

DRAFT Exhibit B-3June 24, 2020

UPPER ARLINGTON CITY SCHOOL DISTRICT June 2020 Five-Year Forecast Assumptions/Notes

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OVERVIEW The Five-Year Forecast (Forecast) is required to be completed twice a year (November & May) for the General Fund and submitted to the Ohio Department of Education. Assumptions contained in this Forecast are based on information that is deemed the best available as of the time of preparation. Actual amounts may differ significantly from those contained in the Forecast. All school districts in the state of Ohio report on a fiscal year. A fiscal year (FY) begins July 1st and ends June 30th. For example, FY20 begins July 1, 2019 and ends June 30, 2020. This Forecast includes the general operating fund of the District, called the General Fund. Enrollment Annually, the District contracts with a third party to complete enrollment projections. This enrollment growth will influence future staffing and space needs of the District (see notes Line 3.01 – Personnel Services for more details).

Actual Actual Actual Actual Projected Projected Projected Projected

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 K-5 2,727 2,820 2,858 2,888 2,920 2,928 2,961 2,965

6-8 1,408 1,409 1,411 1,452 1,469 1,502 1,562 1,604

9-12 1,805 1,860 1,868 1,831 1,875 1,882 1,869 1,937

Total 5,940 6,089 6,137 6,171 6,264 6,312 6,392 6,506

Source: Projected enrollment recommended data obtained from "Enrollment Projections Report" dated November 2019 – Cooperative Strategies

Coronavirus (COVID-19) Pandemic On March 14, 2020, the Director of the Ohio Department of Health, ordered all school buildings that provide any kindergarten through grade twelve instruction in the State of Ohio be closed to students beginning on March 17, 2020 to prevent the spread of COVID-19 in the State of Ohio. The Director later extended this order through the remainder of the 2019-20 school year. While the buildings remain closed, students have participated in distance learning at all grade levels. District FY20 expenditures increased less than expected due to the building closures. The district has delayed a tax levy request planned for November 2020 by one year due to the impact of the Pandemic. In order to offset the financial impact of this delay the Board of Education has implemented a budget reduction plan over the next four years and a temporary change in its budget reserve policy (see below). The following revenue streams are impacted by the Pandemic:

State Funding In the previous Forecast (November 2019), the district forecasted little change in basic aid state funding over the years as the current state biennium budget continued to flat fund the district for FY20 and FY21, receiving the approximate amount of funding as in prior years in the General Fund. However, this biennium budget also included a new supplemental funding category for growing districts based on a per student allocation. The District was forecasted to receive $150,000 in FY20 and $223,000 in FY21 through FY24 On May 7, 2020, the Ohio Department of Education (ODE) implemented funding reductions to all districts in the State of Ohio to assist the state in balancing its 2019-20 budget. ODE implemented a methodology for these reductions that affected districts across Ohio differently.

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State Funding, continued The district’s budget reduction for 2019-20 was approximately $1.83 million or 53% of its basic aid state funding. Based on the state’s current economic condition, the district believes these funds will be withheld annually through FY24. The District also expects the state to eliminate the “growing district” supplemental funding in FY21 and beyond.

Update: The legislature passed HB164 and the governor signed it on June 19th, 2020. HB164 included language to set a cap on the budget reduction amount for FY2020, thus decreasing the budget reduction amount to approximately $500,000 for this district. However, the district continues to include the $1.8 million in state budget reductions in FY21 through FY24 based on the anticipated economic challenges for the state economy.

The State Legislature designated 34% of tax receipts generated from casinos to school districts across the state starting in calendar year 2013. The District received casino receipts of approximately $327,000 in FY19. Casinos are currently closed due to the pandemic and even when they reopen, activity is expected to be less than in past years. Therefore, the district has decreased its revenue projections from its previous forecast for casino allocation for FY21 by 70% ($229,000) and FY22 by 50% ($162,000). The total impact of these revisions to the state revenue projections through FY24 compared to the previous five year forecast (November 2019) is a decrease of $9.1 million.

Other Revenue The district also decreased revenue forecasted in other revenue areas. These reductions were made as facility rental income will be less due to the mandatory requirement of closing school facilities from March 17 through at least June 30, 2020. Even though buildings may re-open in FY21, the expected requirements limiting mass gatherings will affect future rentals. Additionally, extracurricular fees will be less in FY20, as the spring athletic season was canceled. These revisions were not material to the forecast; however, it is important to realize the Pandemic has impacted multiple areas of revenue.

Federal Cares Act The District’s allocation for funds related to the Federal Cares Act, passed through the State of Ohio, is approximately $250,000 (net). This allocation is NOT included in this forecast, as these funds are recorded in a special federal grant fund, and not the general fund. Budget Stabilization The Board formally adopted the practice of maintaining three months of expenditures as a cash reserve into policy on May 10, 2016. The intent of this reserve is to help stabilize the budget for unanticipated events. In June 2020, the Board reduced the cash reserve amount to 1.56 months of expenditures starting in FY21 and beyond in order to decrease the impact of delaying a planned operating levy request by one year. Additional details of this budget stabilization reserve are included in note Line 9.03 – Budget Reserve. Safety and Security The safety of students and staff is a top priority of the District. In FY18, the District had a third party conduct a district-wide safety audit in partnership with the Upper Arlington Division of Police and the Upper Arlington Division of Fire. At the request of the Board of Education, the Superintendent issued a Safety Audit Summary Report and Recommendations. This report and the related recommendations were approved by the Board of Education in June 2018. Various costs associated with these recommendations are included in this forecast.

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REVENUE The graphs below illustrate the allocation of actual revenue amounts between categories for FY19 and the projected allocation between revenue categories for FY24 based on forecasted amounts.

BASED ON ACTUAL REVENUE

BASED ON PROJECTED REVENUE

See detail notes on revenue categories on pages 4-9.

Real Estate78.0%

Public Utility3.0%State

Funding4.7%

Prop Tax Alloc

10.4%

All Othr Op Rev

3.6%

Othr Sources

0.2%

2016

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Line 1.010 – Real Estate Tax

**2015-2019 are actual amounts and 2020-20224 are projected amounts.

The three reasons real estate tax revenue increase are: new levy, new construction and, to a lesser degree, appraisals. Levies As mentioned previously, the District’s residents approved a 3.75 mill new operating levy in November 2017. This levy generates an additional $6.5 million annually. Revenue collection for this levy started in calendar year 2018; thus, approximately half the collection amount was recorded in FY18 and a full year of collection was reported in FY19. See “Collection” section below for additional information related to FY18 and FY19. New Construction The District is landlocked with very few vacant lots; thus, the majority of residential new construction, which is minimal, consists mostly of remodeling existing homes. Residential new construction has resulted in assessed valuation increasing between 0.30% and 1.28% since 2002. More recently, residential new construction increased assessed valuation by .5% in calendar years 2017 and 2018 and .4% in calendar year 2019. New construction is projected to increase by .5% in calendar years 2021-2024. In calendar year 2020, new construction increased residential valuation by .7% generating approximately $495,000 of additional revenue (includes the State’s amount for homestead and rollback). Appraisals The County Auditor performs appraisals every three years. The latest appraisal by the county was conducted in the fall of 2017 and resulted in a 12.1% increase in residential valuation for calendar year 2018. The previous appraisal occurred in calendar year 2015 which impacted fiscal years 2015 and 2016. The 2015 appraisal resulted in a residential valuation increase of 7.77%. The County Auditor is currently performing the next appraisal, which will affect residential valuations for calendar year 2021. The district has forecasted a 14% increase in residential properties related to this appraisal. Due to the number of valuation challenges filed by homeowners requesting decreases in valuation throughout the years, the District’s residential valuation is projected to decrease by .15% during non-appraisal years (collection year 2019 and 2020 valuation decreased .4% and .2%, respectively). See the “Class I Variance Graph” for past fluctuations and future projections on appraisals. Additionally, as valuation challenges are finalized the impact of the decision could generate one-time refunds related to prior year payments as was the case in fiscal year 2019.

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Line 1.010 – Real Estate Tax, continued Overall, Upper Arlington maintained its property values during challenging economic times. However, it is important to realize that increased or decreased valuation due to the appraisal process has little impact on District’s revenue due to HB 920. In its simplest form, HB 920 means as district valuation increases, most tax rates decrease (or vice versa) so districts receive the same revenue as the year before. The only exception to this rule is something called “inside millage” which is not reduced or increased. The inside millage rate was set decades ago. For Upper Arlington, the inside millage rate is 5.65 mills. As valuations increase the district receives additional revenue generated from inside mills and as valuations decrease the district loses revenue. The estimated impact of a 12% increase in valuation due to the reappraisal in calendar year 2018 is approximately $1,000,000 (includes the State’s amount for homestead and rollback), not a 12% increase in total residential tax revenue. This graph illustrates the history and future projections of inflationary increases on residential valuations.

*Tax Years 2007-2019 are actual percentages and 2020-2030 are projections. Collections In calendar year 2018, more residents paid their entire tax bill in 1 payment (received in March 2018 – FY2018) due to the pending tax reform change versus splitting their tax bill over 2 payments (2nd payment usually received in August 2018 – fiscal year 2019). This change in payment pattern led to an approximate 5% increase in tax revenue in FY18 but a 5% tax revenue decrease in FY19. This change in payment pattern is only a timing difference and has no impact over a two year period. This change in pattern is expected to only impact calendar year 2018. Other The District records all Tax Incremental Financing (TIF) and Payment in lieu of Tax (PILOT) receipts in Other Revenue. Property values recorded in the TIF area are reclassified and revenue generated from these areas are reported as “Other Revenue” instead of “Real Estate Tax”. See note Line 1.06 – All Other Revenue for additional information.

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6/16

Lines 1.02 – Public Utility Personal Property Tax


The only amounts reported in line 1.02 are revenue related to public utility personal property tax (PUPPT) and delinquent PPT payments related to prior years. Utility companies continue to lobby for a decrease in these taxes; however, to date no changes have occurred. PUPPT increased in calendar year 2018 (FY18 and FY19) due to a new 3.75 mil operating levy that was discussed previously. The District will reduce PUPPT .5% starting in calendar year 2021 to account for the depreciation of utility assets generating this revenue.

DRAFT


7/16

Line 1.035 - Unrestricted Grants-in-Aid


The District receives approximately the same amount of state foundation support as it did more than 10 years ago. FY14 & FY15 HB 59 was passed in June 2013 and created a new school funding formula which impacted FY14 and FY15. The new funding formula included a caveat that a district receiving less state funds from the new formula than what was received in FY13 would be kept whole. This concept is called the “Transitional Aid Guarantee” (Guarantee). This District is one of many districts on this Guarantee. Also, as part of HB59, Preschool funding now flows through the District versus being paid directly to the Education Service Center of Central Ohio (ESC), the provider of early learning for the District. This change increased revenue by approximately $224,000. Overall, the impact on the bottom line is minimal because expenditures also increased since the funding now flows through the District. The State Legislature designated 34% of tax receipts generated from casinos to school districts across the state starting in calendar year 2013. The District received casino receipts of approximately $327,000 in FY19 and projects minimal increase each fiscal year thereafter. This revenue stream is highly volatile; however, overall fluctuations will not have a material impact on the District’s financial position. FY16, FY17, FY18 & FY19 The budget legislation passed in June 2015 (impacting FY16 & FY17) and June 2017 (impacting FY18 & FY19) had little impact on the district’s funding as both budgets continued the concept of the “Transitional Aid Guarantee” (Guarantee). The minimal increase seen in the chart above is due to increased enrollment in special needs preschool; however, this additional funding is paid to a third party providing services to the District’s special needs preschool students. FY20 & FY21 Once again, the state’s biennium budget passed for FY20 & FY21 had little impact on the District’s allocation as base funding was frozen. A new supplemental funding category for growing districts was added to this budget based on a per student allocation. The District was expecting to receive $150,000 in FY20 and $220,000 in FY21 and beyond. However, in May 2020 the State decreased the District’s base funding allocation by approximately $500,000 due to the state’s budget crisis impacted by COVID-19. The District also reduced casino revenue in FY21 and FY22 and eliminated the estimated supplemental aid for growing districts in FY21 and beyond. (See more details on the impact of COVID-19 on pg. 1).

DRAFT


8/16

Line 1.035 - Unrestricted Grants-in-Aid, continued FY22, FY23 & FY24 The District assumed base state funding for these years will be reduced by $1.8 million from the FY19 allocation. This was the original reduction amount for FY20 that was announced by the state before the legislature passed HB164 limiting the reduction amount for FY20 (See more details on the impact of COVID-19 on pg. 1).

Line 1.05 - Property Tax Allocation


Rollback & Homestead are State of Ohio programs which reduce an individual’s share of property taxes. The Homestead exemption requires the state to pay a portion of property taxes for lower income senior citizens. The Rollback exemption requires the state to pay approximately 12.5% of an individual’s property taxes. Effective November 2013, the State will no longer pay this Rollback exemption on any new levies. Revenue related to both Homestead and Rollback exemptions will increase as valuations increase; however, only revenue generated from the Homestead exemption will increase related to any new levies.

DRAFT


9/16

Line 1.06 – All Other Operating Revenue


This category consists of a number of revenue sources including: investment income, tuition, extracurricular fees, tax incremental financing receipts, and others. Investment earnings are related to current and expected market conditions. As investment balances and rates have continued to increase and the district invests in longer maturities investment income has increased. The District’s investment income for FY19 was $1,806,000 compared to $1,307,000 in FY15. However, as cash balances decrease in future years and interest rates decrease due to economic challenges, investment earnings are also projected to decrease. Investment earnings are forecasted to decrease $800,000 in FY21. Tuition and other revenues are expected to remain consistent during the five-year projection, while rental income is expected to decrease starting in FY20 by $150,000 as a major weekend tenant relocated and fewer spaces will be available to rent due to construction. Additionally, due to COVID-19 the district’s buildings are closed and not rented. This caused an additional decrease of $133,000 in rental income in FY20. In FY20, the district received a surplus refund from the County Auditor of $228,500 related to real estate assessment fees. This refund is not projected in future years due to the challenging economic times. Tax Incremental Financing (TIF). TIF financing redirects routine property taxes to various projects. In most TIF cases, the District’s portion of TIF collections is equal to property tax collections without a TIF; however, because the project is classified as a TIF the District records the revenue separate from real estate taxes. In FY17, the District received TIF payments for seven projects in the City of Upper Arlington. The FY17 amount included a one-time payment that is not expected in FY18 and beyond. The increase in FY19 is due to 3 additional TIFs, the impact of the 2017 levy and several one-time back payments related to a prior year. In FY20, the district is expecting additional one-time payments. The following amounts are specifically related to TIF revenue:

Actual Actual Actual Projected Projected Projected Projected Projected

FY17 FY18 FY19 FY20 FY21 FY22 FY22 FY23

$ 1,439,000 $ 1,297,000 $ 2,155,000 $ 2,357,000 $ 1,808,000 $ 1,808,000 $ 1,808,000 $ 1,808,000

DRAFT


10/16

EXPENDITURES The graphs below illustrate the allocation of actual expenditure amounts between categories for FY19 and the projected allocation between expenditure categories for FY24 based on forecasted amounts.

BASED ON ACTUAL EXPENDITURES

BASED ON PROJECTED EXPENDITURES

See detail notes on expenditure categories on pages 11-16.

DRAFT


11/16

Line 3.01 – Personnel Services (Salaries)


Salaries and wages for staff are based on negotiated agreements expiring in June 2020 for support personnel and June 2021 for teachers. For projection purposes, the District expects increases in wages in FY21 and beyond to be market driven. Other factors related to wages are costs associated with changes in education categories and annual advancement (steps) on the salary schedule. The teachers’ association contract included no increases on the salary schedule from January 2015 to July 2017, a 2% increase starting in August 2017 and between 2.35% - 2.5% increases from August 2018 to August 2020. The support personnel’s contract included no increases on the salary schedule from January 2014 through December 2016, a 2.5% increase starting January 2017 for 18 months, a 2% increase starting in July 2018 and a 1.75% increase starting in July 2019. In both of these contracts, automatic step increases occurred. The District had large groups of retirees (25) in FY14 and (19) in FY15. Many of these retirees took advantage of the early separation agreement the District offers which impacts the following fiscal year. As experienced teachers retired, skilled but less experienced teachers filled the open positions thus decreasing personnel expenditures. As fewer employees are eligible to retire, the average number of retirees over the last few years is six. The District is projecting seven staff retirements per year for the remaining years of the forecast. As enrollment continues to grow, additional staff is necessary. The enrollment increase has caused specific grade levels at specific buildings to become too large thus requiring additional staff in the classroom and supporting the classroom, along with additional needs in the special education program. In addition, all day kindergarten is projected to start in FY22. In the General Fund, the District added 9 staff members (FY17), 12 staff members (FY18), 10 staff members (FY19) and 9 staff members (FY20). As part of the district’s budget reduction plan, the district has implemented a hiring freeze through FY23 on new positions, excluding staff related to the implementation of all-day kindergarten in FY22. This plan has eliminated or deferred approximately 14 new positions (teaching and non-teaching) included in previous forecasts. See pg.1 – Coronavirus (COVID-19) Pandemic for more details.

DRAFT


12/16

Line 3.02 – Employees’ Benefits


Insurance (53% of employees’ benefit expenditures) Annual health insurance renewals and future negotiated agreements will affect this category. The District is self-insured and offers a high-deductible medical insurance plan. On average, premium increases have been less than the industry trend excluding 2016. Unfortunately, in 2015 the District’s claims exceeded expectations. These large claims greatly impacted the premium increase for 2016. The medical premium for 2016 increased 26%. Fortunately, the claims in 2016 were less than projected which led to no increase in insurance premiums for 2017. Premiums increased 2.5% in 2018 and there was no increase in premiums in 2019. Future premium increases for calendar years 2020-2021 are projected at 3% as co-insurance will be implemented in 2020. Future increases for calendar years 2022-2024 are projected at 7% based on current trend. Additionally, the number of staff utilizing the insurance plans increase as staffing increased. See line 3.01 – Personnel Services for additional detail on staffing. The District will continue to review insurance plans and processes for future savings. Pension (43% of employees’ benefit expenditures) The Ohio Revised Code requires all districts to contribute 14% of total employees’ payroll into a state pension system (i.e. State Teachers Retirement System (STRS) or School Employees Retirement System (SERS)). Any fluctuations in payroll will have a direct impact on pension expenditures. See line 3.01 – Personnel Services for additional detail on payroll fluctuations.

DRAFT


13/16

Line 3.03 – Purchased Services


GENERAL TRENDS This line includes items such as charter school payments, autism scholarships, tuition owed to other public entities for District students attending programs at these entities, transportation of pupils, property insurance, legal services, utilities, technology contracts/leases, substitutes, professional development and others. It also includes a contract with the Education Service Center of Central Ohio (ESC) for staffing and various student programs related to special education. FY20 expenditures were less than expected due to the closure of district buildings for 3 months related to the Pandemic. See pg.1 – Coronavirus (COVID-19) Pandemic for more details. ESC As District enrollment continues to increase it also increases ESC costs due to additional enrollment in the various ESC programs and additional required support. This increase is most notable in the special education services for preschool. The costs associated with this program increased by approximately $200,000 in FY17 as an additional classroom was added. ESC programs in FY21 and beyond are projected to increase 4-5% a year due to program enrollment and staffing costs. Additionally, as enrollment continues to increase the district added two coordinator positions through the ESC in FY20 to assist in the student services department. The addition of two coordinator positions planned for the teaching/learning department in FY21 has been deferred until FY24 due to the hiring freeze discussed earlier. The District also contracts with the ESC for all classroom substitutes. This cost increases annually as staffing continues to grow in the District. Tuition and Other Payments An area of increasing cost but also cost uncertainty in the future is tuition/other payments required to be paid for District students attending other entities such as STEM schools, charter schools, Franklin County Board of Development Disabilities, and other special education programs. The District has little control over these expenditures. In FY17, the cost of these programs increased approximately $400,000 (25%) and in FY20 costs are projected to increase an additional $300,000 (15%). Future costs related to these programs are estimated to increase 3-7% annually.

DRAFT


14/16

Line 3.03 – Purchased Services, continued Technology As noted in the Overview on page 1, the District implemented a digital conversion program in FY16 as part of its Strategic Plan. In FY17, the District made its first lease payment (approximately $500,000) related to technology devices for all elementary students. This amount was reallocated from the supplies, other purchased services and capital outlay expenditure lines (see note Line 3.04 Materials and Supplies and Line 3.05 – Capital Outlay for more detail). Safety As mentioned earlier, the District has implemented recommendations related to safety and security in both FY19 and FY20.

Line 3.04 – Supplies & Materials

**2015-2019 are actual amounts and 2020-2024 are projected amounts. These items include textbooks, software, instructional materials, and building budget items that go toward classroom and office supplies, teacher training, classroom equipment, and library materials. Over the last several years, the District evaluated its curriculum, including related textbooks and various software. During this time few textbooks and related software was purchased. However, several curriculum review cycles have ended and in FY20 and beyond the forecast includes budgets for the implementation of new instructional materials and related software. Software used for district operations is also included in this category (i.e. virus protection, human resources, fiscal, networking, etc.). FY20 expenditures were less than expected due to the closure of district buildings for 3 months related to the Pandemic and a freeze on any non-essential purchases. See pg.1 – Coronavirus (COVID-19) Pandemic for more details.

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15/16

Line 3.05 – Capital Outlay


Expenditures in this category include equipment, furniture, technology, vehicles, etc. Most capital outlay expenditures for building improvements and maintenance are reported in the District’s Permanent Improvement Fund which is not included in the Forecast. This fund was created in 2007 thanks to the District’s residents passing a 2.0 mill permanent improvement levy. These funds cannot be used for employees’ salaries and benefits.

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16/16

Line 4.3 – Other Objects


The primary item is auditor/treasurer fees for collection of taxes. In FY15 and FY19 the County Auditor reduced tax collection fees by approximately $230,000. This reduction is not expected to occur in FY20-FY24. In calendar year 2014, Franklin County implemented a new fee in order to create funds for a county land bank. The County charges a 5% fee on all delinquent tax collections and related penalties.

Line 9.03 – Budget Reserve Reserve Established in 2013 In 2013, as the Board was reviewing its future financial needs and discussing the November 2013 levy, the administration recommended that the District continue to follow its informal practice of reserving an amount equal to 3 months of expenditures (25% of annual expenditures) set aside for future budget stabilization needs. This practice was formalized by the Board in May 2016 when it adopted this practice into policy. This reservation allows the District to be fiscally responsible and stay financially sound in times of unexpected revenue shortfall or unanticipated budget requirements. In addition, this practice will trigger conversations of future levy needs and budget reduction requirements when the reserve amount cannot be fulfilled due to decreasing fund balances. The District began to illustrate this reserve in the Forecast starting in FY15. The Coronavirus (COVID-19) Pandemic has affected the economy in various ways across the world and the district. The purpose of a budget reserve is to protect the district’s finances during unexpected times like this. The Board of Education has chosen to reduce the budget reserve to 13% of annual expenditures in order to limit the impact of delaying, for one year, a request to the community for an additional tax levy.

DRAFT

ExhibitB-4June24,2020

B. Fiscal

4. Transfers/Advances

TRANSFERFROM TO AMOUNT GeneralFund IBTesting(018-9104) $2,110.45 GeneralFund Arlingtonian(200-9100) $1,152.58 ADVANCEFROM TO AMOUNT GeneralFund ElementaryAuthorVisits(019-9166) $10,000.00 GeneralFund LegacyCampaign(070-9519) $1,920,139.95 GeneralFund StateBusProgram(499-9020) $4,335.00 GeneralFund ESSER(507-9021) $117,386.00 GeneralFund FY20IDEA(516-9120) $77,691.64 GeneralFund FY20IDEARestoration(516-9120) $26,331.15 GeneralFund FY20TitleIIILIEL(551-9020) $2,439.39 GeneralFund FY20TitleI(572-9020) $43,629.60 GeneralFund FY20TitleII-A(590-9020) $7,326.20 GeneralFund FY20TitleIV-A(599-9020) $4,136.34

RESOLUTION

WHEREAS, on March 14, 2020, Amy Acton, MD, MPH, Director of the Ohio Department of Health, ordered all school buildings that provide any kindergarten through grade twelve instruction in the State of Ohio be closed to students beginning on March 17, 2020 to prevent the spread of COVID-19 in the State of Ohio ("School Closure Order");

WHEREAS, the Ohio Department of Education ("ODE") determined the School Closure Order applied to preschool programs licensed by the Department that operate in school buildings;

WHEREAS, the Board operates a preschool program licensed by the Ohio Department of Education at its Burbank Early Childhood School ("BECS");

WHEREAS, on May 29, 2020, Dr. Acton issued an order reopening child care facilities ("Child Care Order"), which specified that ODE licensed preschool programs could reopen subject to compliance with regulations to be adopted by ODE consistent with the Child Care Order;

WHEREAS, ODE adopted such regulations ("Regulations") regarding the operation of licensed preschool programs on June 9, 2020;

WHEREAS, in order to comply with the safety requirements of the Regulations, the Board has determined it will reduce the number of students enrolled at BECS during the 2020-2021 school year and take such other actions as necessary to ensure student safety.

NOW, THEREFORE, BE IT RESOLVED by the Upper Arlington City School District Board of Education that:

1. All 2020 BECS Summer Sessions will be cancelled;2. The BECS Young Preschool and Kindergarten Wrap-Around programs will be

suspended during the 2020-2021 school year;3. No student who attends BECS during the 2020-2021 school year shall be dual

enrolled in a home daycare program, or any other non-BECS preschool program.

BE IT FURTHER RESOLVED, that the Board has deemed it a proper public purpose to refund payments already collected for the foregoing programs, and will refund such payments already paid to the Board for summer 2020 and the 2020-2021 school year, including any nonrefundable deposits.

BE IT FURTHER RESOLVED, that the Board authorizes and directs the administration to take all actions necessary and consistent with this resolution.

Exhibit C-1June 24, 2020

Exhibit C-5 June 24, 2020

Board Policy Update: Items for Action

Number Policy Description Revised (changes reflect additions to and/or deletions from existing policies) 4120 Employment of Certified Staff Reflects current Ohio law and

should be adopted 4120.08 Employment of Personnel for

Co-Curricular/Extra Curricular Activities Reflects current Ohio law and

should be adopted

Exhibit D-1June 24, 2020

Exhibit D-2June 24, 2020

wednesday, june 24, 2020 8:00am – regular meeting agenda of... · meeting will be held using...

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