May 4, 2010 Levy Information – Presented by Steve Farnsworth, Superintendent& Bart Griffith, Treasurer

Discussion Topics: 1. What is Our Message

2. Financially Accountable

3. Examples of Cost Containment

4. Hudson City School District: A Profile of Excellence

5. The Effects of Ohio’s School Funding Structure and Unfunded Mandates

6. Looking Forward

To equip students with a competitive 21st century education.

To be fiscally responsible with your tax dollars.

To continue to tighten our belts and contain costs.

To find new sources of revenue (i.e. grants, Race to the Top funds and gas wells on school property).

IT’S UP TO US… the school district: IT’S UP TO US… the school district:

To provide resources because the state of Ohio is NOT solving school funding.(Hudson ranks 486/612 districts for basic state aid

per pupil.)

To continue to provide our own resources for an excellent education for our students.

To ensure Hudson remains a desirable location for new economic development.

To protect the value of our homes.

To guide the district on a path of continued excellence

IT’S UP TO US… the community: IT’S UP TO US… the community:

Because voter-approved, school funds can ONLY be used for their intended purpose and must remain in our district .

Because resources are needed to maintain top-flight staff and safe, efficient facilities.

Because the district must continue to provide challenging programming in academics, arts and athletics.

Because we want to remain an “Excellent - with Distinction” school district.

Because we want to provide vibrant, efficient HCER programs that serve the entire community.

FOR ALL OF US: FOR ALL OF US:

IT’S UP TO US…To be financially responsible with your tax dollars.IT’S UP TO US…To be financially responsible with your tax dollars.

Hudson has consistently earned recognition for “Excellence in Financial Reporting” and for “Making Your Tax Dollars Work”.

Each year, a Comprehensive Financial Report is submitted to state, national and international auditing bodies for external reviews. A rating of “Excellent” is the top award.

Less than 5% of the 5,500 entities that the Auditor of State’s Office audits each year receive the “Making Your Tax Dollars Work” Award.

We have received and heeded advice from the Citizens Financial Advisory Committee.

Understanding Hudson’s Declining EnrollmentUnderstanding Hudson’s Declining Enrollment

School Year

2004-05

2005-06 2006-07 2007-08 2008-09

Decline in Students

97 79 159 72 134

Total decrease is 541 students over a 5-year period

Average of 108 students per year

Average of just 8.3 students per grade level

Understanding Hudson’s Declining EnrollmentUnderstanding Hudson’s Declining Enrollment It takes a long time and a significant drop in enrollment per grade before a district can reduce staff without increasing class size.

The district instituted a full-time equivalent (FTE) freeze & began reduction of elementary teachers in grades where enrollment dropped enough to eliminate a classroom.

In 2010, enrollment has reached the point that additional reductions are feasible in certain grades.

Of 77 Northeast Ohio communities, Hudson ranks 28th

in property taxes paid.

Cleveland Magazine, “Rating the Suburbs” Survey

June, 2009

Source- Cleveland Plain Dealer Vital Statistics

IT’S UP TO US…To be financially responsible with your tax dollars.IT’S UP TO US…To be financially responsible with your tax dollars.

Source – Ohio Dept. Education

IT’S UP TO US…To continue to tighten our belts and contain costs. IT’S UP TO US…To continue to tighten our belts and contain costs.

Doubled the life of the 2006 Operating Levy which was to last only 2 years.

Saved taxpayers nearly $5,788,000 through cost avoidance and savings programs since 2006.

Committed to an additional reduction of $1,000,000 in personnel costs.

IT’S UP TO US…to find new sources of revenue, including grants, Race to Top Funds and gas wells.

IT’S UP TO US…to find new sources of revenue, including grants, Race to Top Funds and gas wells.

The district has received $619,000 in grants funding since the 2007-2008 school year.

District applied for Federal Race to the Top Funds in December 09.

Gas Wells: District receives $60,000 per year in free natural gas and royalties.

2008 National Blue Ribbon High School – One of only 5 high schools in Ohio to receive this award.

“Excellent” and “Excellent – with Distinction” - State rankings for nine years.

2008 National Siemens Award for AP curriculum in math, science and technology.

Ranked in the top 3% in the nation by Newsweek for AP curriculum.

764 AP tests were given in 2009 – the most ever in district history.

A Profile in Academic Excellence A Profile in Academic Excellence

14 seniors have been recognized by the National Merit

Scholarship program – Semi-finalist (6) or commended (8).

74% of college-bound seniors took the SAT and scored well above the national average. SAT CATEGORY

National Mean Score

Hudson Mean Score

The Hudson Difference

READING 501 552 +51MATH 515 568 +53WRITING 493 534 +41

A Profile in Academic Excellence A Profile in Academic Excellence

79% of college bound seniors took the ACT. ACT record set in 2009.

ACT CATEGORY National Mean Score

Hudson Mean Score

ENGLISH 20.6 25.2

MATH 21.0 25.4

COMPOSITE 21.1 25.4

School District Record!

A Profile in Academic Excellence A Profile in Academic Excellence

Class of 2009: 96% of graduating seniors went to college or military academies.

97% of our students with special needs met the requirements to graduate with a regular high school diploma.

Number Percentage

4-YEAR COLLEGE 374 93%

2-YEAR COLLEGE 14 >3%

MILITARY 2 >1%

WORK 12 3%

A Profile in Academic Excellence A Profile in Academic Excellence

12 high school students received Gold, Silver and Honorable mention in the 2010 55th Annual Scholastic Art Competition.

Sixth grader, Lily Riffle, won 1stplace in the Ohio Art Education Association 2010 Flag Design Competition, 6-8 grade category.

Hudson High School Marching Band was invited to perform at the Buffalo Bills vs. New York Jets game in Toronto.

Hudson High School Orchestra has been selected to perform in Italy this summer.

A Profile in Artistic Excellence A Profile in Artistic Excellence

50% of our high school students participate in athletics

Hudson High School athletic teams won 7 Division and Sectional Championships this fall.

57 athletes were named to All-Division First and Second Teams.

7 athletes were named to All-Ohio teams.

Hudson High School Football team was recognized by the Ohio High School Football Coaches Association for Academic Excellence - one of only 20 out of 714 eligible high schools.

A Profile in Athletic Excellence A Profile in Athletic Excellence

The Effects of Ohio’s School Funding Structure and Unfunded Mandates

The Effects of Ohio’s School Funding Structure and Unfunded Mandates

Since 1976, H.B. 920 maintains revenue at essentially the same level, regardless of inflation.

Without H.B. 920, our district would not have to be on the ballot every 3-4 years.

As expenses inevitably grow due to inflation, an Ohio school district has no way to meet these costs but to pass an operating levy.

Understanding House Bill 920Understanding House Bill 920

Understanding House Bill 920Understanding House Bill 920LEVY HISTORY

YEAR VOTEDVoted Millage Effective Millage

1976 and Prior 31.2 mills 7.28 mills

1981 7.1 mills 2.15 mills

1986 4.9 mills 2.08 mills

1990 6.8 mills 3.41 mills

1994 5.5 mills 3.65 mills

1998 5.3 mills 4.12 mills

2003 5.5 mills 4.85 mills

2006 5.5 mills 5.25 mills

$1,000,000 less in investment earnings since 2008.

$425,000 loss in reassessed property values

Additional $175,000 requested in reassessed property value from Summa.

$500,000 in fees to Summit County annually to collect our property taxes

Basic State Aid Cuts:o - $188,000 in 2010o - $235,000 in 2011o - $350,000 in 2012

Additional Loss in Revenues Additional Loss in Revenues

All these

reductions total 2.65 mills

• Tangible personal property tax loss will total $2,000,000 by 2014 and $4,000,000 by 2016 = 4.2 mills

Additional Loss in RevenueAdditional Loss in Revenue

Submission to state for special education reimbursement

Submitted

Amount Received

2008-2009 2010 $335,409.74

May 2010

2007-2008 2009 $607,884.95

$171,086.51

2006-2007 2008 $435,476.13

$131,054.02

2005-2006 2006 $663,173.63

$214,653.53

2004-2005 2005 $664,038.20

$141,258.63

Seeking every dollar in RevenueSeeking every dollar in Revenue

The Statedecide

show

muchdistric

tsare paid.

*Reimbursement begins at $27, 375 for some students. Other reimbursements are determined by disability.

District cannot pick or control the number or type of students we receive (i.e. special needs students vs. regular)

Cannot control state mandates such as all day kindergarten.

Public utility and personal property assessment reduction

Federal mandates such as “No Child Left Behind” and other “Special Needs” requirements

Other Factors that Impact ExpendituresOther Factors that Impact Expenditures

Looking Forward: The passage of this levy must be combined with responsible cost containment for long-term success.

Looking Forward: The passage of this levy must be combined with responsible cost containment for long-term success.

YEAR END BALANCES

2010-2011

2011-2012 2012-2013

WITH LEVY $9 million $6.8 million $1 million

WITHOUT LEVY $7 million

- $1.7 million

- $13 million

Looking Forward: if LEVY PASSES:Looking Forward: if LEVY PASSES:Our children can continue to receive

unmatched academic excellence.It will help keep home values high.

Hudson home value increased 4.3% in latest reassessment

Strengthened partnerships with Chamber of Commerce, HEDC, Hudson Schools Foundation, City of Hudson

The district can continue to support HCER and HCTV operations.

The district remains committed to academic excellence, cost containment and increasing additional revenue streams.

Looking Forward: IF LEVY PASSES:Looking Forward: IF LEVY PASSES:Approximate additional cost to the

homeowner based on the following market values:

o Per $100,000 market valuation = $181 per year

o Per $200,000 market valuation = $362 per year

o Per $300,000 market valuation = $543 per year

QUESTIONS?QUESTIONS?If you have questions about the May 4, 2010 Operating Levy, please contact:

Superintendent Steve Farnsworth: 330-653-1216 | farnswos@hudson.edu

Treasurer Bart Griffith:330-653-1270 | griffitb@hudson.edu

Levy information available online at www.hudson.edu Click on “Levy”