Indian Hill School District Five-Year Forecast May 2022 Update

Mick Davis

At the Indian Hill Board of Education Meeting Tuesday, May 17, I shared an update of the District’s five-year financial forecast. This important planning tool is required by the Ohio Department of Education and presented twice a year, in November and May. The forecast aligns our income and expenses to our District’s current and future goals with respect to academics, operations, and facilities.

Tax Reductions
First, I want to note that our taxpayers will see a second significant tax reduction as 1.18 mills from our 2001 bond falls off in 2027. The first reduction happened after the District did an excellent job structuring the refinancing of bonds to achieve taxpayer savings of $8.5 million. That savings for residents was in the form of reduced millage paid toward the bonds. Effective in 2019, a significant share of what residents paid on this bond expired – reducing the bond debt by 1.74 mills. That amounted to an annual reduction of approximately $300 on a $500,000 home, and an annual savings of approximately $600 on a $1 million home.

Bond/Operating Levy Investment
We are now in the first calendar year for collecting on the combined operating and bond issue passed by the community May 4, 2021. As a reminder, the bond issue is a 30-year financial commitment that generates an estimated $77 million for our facilities. The operational levy is a 5-year commitment that generates an estimated $3.3 million per year for five years in operating funds with an option to place a renewal on a future ballot.

Construction
As we communicated in our recent Building a Brave Future Construction Update, the original master plan cost estimate was $77 million for construction taking place at all four of our facilities. This work includes building a new Unified Arts wing to replace the “sawtooth” at Indian Hill Elementary School, building a new Indian Hill Middle School building, and making significant safety and mechanical upgrades across our campus. Due to current market conditions, operational research during the beginning phases of construction, and community engagement this school year which revealed the need to increase the scope of the project, in April 2022 the master plan cost estimate was $78.6 million. This past spring, the Board approved an additional nearly $2 million in added scope. We will continue to provide updates as the project evolves. 

Continued Conservative Fiscal Management
I think it is important to note again this spring, this past school year has been a positive year for the Indian Hill School District, and we appreciate the support of our stakeholders to make that possible. As with the examples of how we managed past bonds, the Indian Hill School District has a history of looking for opportunities to provide cost savings to our stakeholders in all that we do as an organization, while ensuring we provide unparalleled experiences for our students. As we look toward the future using our five-year forecast, we know our budget is balanced; our financial outlook is stable; our focus is to continue to provide our stakeholders the excellence they expect and deserve, and doing so in a fiscally responsible manner.

Again, thank you for the continued support of our schools. You can count on continued timely financial updates. Should you have any questions about our District’s finances, please contact me directly. 

Sincerely,
Mick Davis
CFO/Treasurer
Indian Hill Exempted Village School District
Posted May 18, 2022