4.0 CASH BALANCE
Why do they need a levy now given their high cash balance?
We believe the 2009 levy is not needed, and can be put off for two more years. The Treasurer’s 11/1/08 five-year forecast shows there is enough in reserve to cover the forecasted expenditures without a May 2009 levy. http://fyf.oecn.k12.oh.us/ (Find Forecast by District Name, District Name, Generate Forecast, Generate Forecast.)
Sycamore’s beginning cash reserve and existing revenue stream is enough to cover the planned expenditures for two years without a new levy.
- Beginning cash balance $37,978,000. (Line 7.020)
- Existing General Property Tax levies generate about $51 million annual school revenue. (Line 1.010)
- Subtracting the forecasted expenditures (Line 5.050):
FY2009 – $74,500,000 forecast
FY2010 – $78,653,500 forecast
FY2011 – $80,915,700 forecast
FY2012 – $83,242,800 forecast
FY2013 – $85,644,100 forecast - As a result, the June 30 Cash Balance* (Line 7.020) in
2008-2009 school year is forecasted to be $39,164,900 and
2009-2010 is forecasted to be $32,525,199 and
2010-2011 is forecasted to be $18,820,699.
*Cash balances do not include revenue from the proposed May 2009 levy. Therefore, even if the levy fails, the school will not run out of money.
ALREADY FLUSH IN CASH!
Sycamore’s $39.1 million cash balance is 52% of revenue.
That percentage is higher than these local districts:
(To be read, Milford’s cash balance is 1% of revenue.)
| Milford | 1% |
| Cincinnati | 2% |
| Winton | 2% |
| Southwest | 2% |
| Reading | 4% |
| M. Healthy | 5% |
| Deer Park | 7% |
| Loveland | 8% |
| Finneytown | 11% |
| Norwood | 12% |
| Northwest | 14% |
| N. College | 16% |
| St. Bernard | 18% |
| Mariemont | 20% |
| Kings | 21% |
| Madeira | 26% |
| Three River | 26% |
| Princeton | 35% |
| Wyoming | 38% |
| Lockland | 42% |
| Oak hills | 44% |
“Kings Board of Education plans to ask voters to approve a 6.9-mill operating levy it will put on the May 4 ballot. …. A projected June 2010 ending balance of $7 million will drop to ….” Source: The Enquirer by Sue Kieswetter 1/9/10.
Note: Kings $7 million cash balance is 20% of revenue.
Sycamore’s is 52% of revenue.
“A school district’s cash balance should be about 6 percent to 8 percent of its revenue, (Treasurer Randy) Seymour said. In Milford’s case, that would be $3 million to $4 million.” Source: Cinti. Enq. 12/11/07 story, With coffers nearly empty, Milford schools move toward asking for levy.