October 7, 2025

Five-Year Financial Forecast

Important Dates:

November 2025: Board of Education Election

December 31, 2026: Expiration of the Current Expense Levy, Passed May 2021

November 2027: Board of Education Election

December 1, 2027: Final Payment of the 2016 Bond Refunding

June 30, 2028: Expiration of CBA with IHEPO Negotiated in July, 2024

Overview:

District Revenue Forecast (Uncertainty) Expenditures
Summary

Revenue Overview

District Revenue Forecast

Property Value Breakdown Trends:

E S T I M A T E D

House Bill 920

In 1976, House Bill 920 (tax reduction factor) became Ohio State Law. This law provides a credit against all voted tax millage. When expected inflation causes property value to increase, additional credits are added to tax levies previously voted upon. This allows property owners to not pay more taxes than the amount in the voted upon levy. This means, that all increases in revenue received from districts who have a voted levy is from the additional amount added due to new construction.

*House Bill 920 - Does not allow school district revenue to increase uniformly with property market values

The 20-Mill Floor

The total tax rate for school district general fund levies cannot fall below 20 mills. Because of this, Ohio property tax rate cannot be adjusted down below the 20-mill mark. Because of this, when property value increases and the tax rate is not adjusted accordingly, taxes increase.

Property Taxes

The confluence of four forces has propelled Ohio’s residential property tax plight:

Rapidly escalating home values.

A relatively slow-growth Ohio economy with below average per capita income making it harder for many to pay their rising property tax bills.
Twenty years of state tax policy changes that have diminished state and local resources available for schools and local government funding, including a reduction in the share of local residential property taxes paid by the state and, separately, by businesses and public utilities, thus placing a greater burden on local residential and agricultural property owners. And to the extent that these are good ideas, this underscores the difficulty of addressing real property tax problems.
Local citizens dutifully and repeatedly supporting real property tax increases forced on them by a system that is overly constraining as it relates to limiting certain property tax growth.

Source: Ohio Education Policy Institute

House Bill 96 (Bi-Annual Budget Bill)

Governor Vetoes

Elimination of 5 levy types 40% carryover balance cap
Inclusion of emergency and substitute millage in 20 mill floor calculation County budget and commission authority to reduce millage
STRS pick-up

Political affiliation for school board races

Potential Legislative Overrides

Legislature can override any vetoes until December 31, 2026 Many proposed vetoes but only 1 veto overturned
Elimination of the 5 levy types

SUMMARY OF HOUSE BILL 96 OVERRIDE VETO

Source: https://www.brickergraydon.com/insights/publications/navigating-school-district-levy-options-going-forward

House Bill 186

Inflation cap credit: The bill proposes an "Inflation Cap Credit" for property owners in districts that are at the 20-mill floor for school taxes. This credit would limit increases in unvoted property tax revenue for those school districts to the rate of inflation. Statewide application: An amended version of the bill was updated to make the tax credit applicable to eligible homeowners in all 88 Ohio counties at the same time, rather than just in counties undergoing a reappraisal.
Expansion of scope: The amended bill also provides an immediate tax credit to all qualifying property owners, not just those experiencing large increases due to a reappraisal.
Adjustments to funding: The bill also mandates adjustments to the school funding formula to account for the property tax reductions.
Property types: The credit applies to residential and agricultural properties, as well as business and industrial property.

Indian Hill Impact

Loss of $4.5 million of future revenue

Other Bills Pending

HOUSE BILL 156 - Senior Property Tax Credit

Provide relief for senior citizens from rising property taxes. HOUSE BILL 335 - Elimination of Inside Millage
Has been eliminated

House Ways and Means Committee - adjust the rate of inside millage levy to limit any increase in revenue to 3%
HOUSE BILL 420 - Discontinuing the Continuum

To gradually eliminate property taxes levied for a continuing period of time, with the goal of ending them by 2030
HOUSE BILL 421 - Arresting Inside Millage

To give voters more power to reduce "inside millage," which are property taxes counties can charge without direct voter approval
HOUSE BILL 422 - The Triumph of the Tax Payer

To increase the vote threshold required to pass new property tax levies

Constitutional Amendment to Eliminate Property Taxe

Proposed amendment would:

Add to the constitution, “no real property shall be taxed, and no law shall impo taxes on real property.” It defines real property as land, crops, buildings and o permanent improvements.

In addition to schools, property taxes fund emergency services, parks, libraries, local governments, and other entities.

Property values are reduced by 35% when calculating taxes.

Other exemptions such as homestead, non-business credit, and the owner-occupancy credit which are reimbursed by the state.

Expenditures

2026

	
2026 (ESTIMATED)
	
2023

TOTAL EXPENDITURES
	
49,774,160
	
43,486,199

SALARY
	
54%
	
56%

BENEFITS
	
19%
	
18%

PURCHASED SERVICES
	
17%
	
15%

SUPPLIES & MATERIALS
	
5%
	
4%

CAPITAL OUTLAY
	
2%
	
3%

DEBT SERVICE
	
2%
	
1%

OTHER
	
1%
	
1%

SALARIES

2023-2026 up 10.1% or 3.4% per year New positions
Salary increases offset by replacement positions

BENEFITS 2023-2026 up 19.8% or 6.6% per year

Retirement increases in relation to salary Medical insurance
Up 23.3% or 7.8% per year

44.4% of benefits budget and 8.6% of total budget 2026 Renewal - 15.1%
Increase in HSA contributions

PURCHASED SERVICES 2023-2026 up 23.2% or 7.7% per year
Controllable vs. Non-Controllable Expenses

PURCHASED SERVICES UTILITIES

2023-2026 up 69.9% or 23.3% per year

13.4% of purchased service total and 2.2% of total budget Inflation
Heating & Cooling (much larger square footage) RELATED SERVICES
2023-2026 up 40.0% or 13.3% per year

30.3% of purchased service total and 5.1% of total budget More students
Inflation CUSTODIAL
2023-2026 up 29.2% or 9.7% per year

14.4% of purchased service total and 2.4% of total budget Inflation

PURCHASED SERVICES SUBSTITUTES
2023-2026 up 13% or 4.3% per year

7.5% of purchased service total and 1.3% of total budget Variable by year
COMMERCIAL INSURANCE

2023-2026 up 70.5% or 23.5% per year

3.1% of purchased service total and 0.5% of total budget Inflation
Increase in cybersecurity New buildings/equipment
PROFESSIONAL DEVELOPMENT/TRAVEL 2023-2026 down 5.3% or 1.8% per year
3.2% of purchased service total and 0.5% of total budget Increase over time of PD to match with our strategic plan Decrease - more internal opportunities

Projected Revenue, Expenditures, and Cash Balance

Mick Davis, CFO/Treasurer

Indian Hill Exempted Village School District

For additional details &

to view the complete presentation, visit: http://www.indianhillschools.org/Finance.aspx