Bexley Schools’ quarterly school district income tax receipts fell by $1.2 million in July, a 22% decrease compared to July 2022.

This year’s significant decrease was projected, as Bexley Schools Treasurer Kyle Smith forecasted a future decrease of more than $1 million in the district's November 2022 and May 2023 Five-Year Forecast revenue projections. An important resource for Mr. Smith is the Finance Advisory Council, comprised of community members who assisted him in confirming this limited data-driven assumption.

Bexley Schools’ latest five-year forecast, issued in May, is available on the district’s website. The five-year forecast is the primary document used to assess the financial health of a public school in Ohio. The Ohio Department of Education requires each public school district to file this report at least twice annually.

School district income tax receipts are the district’s second largest revenue source. It is received quarterly and the July payment is typically the largest of the year. The schools’ .75% continuous income-tax levy was approved in 2004.

Projections Show No Additional Revenue Needed in Immediate Future

During the May 10 meeting of the Bexley Board of Education, Treasurer Kyle Smith provided a report on the school district’s five-year forecast. The five-year forecast, which is updated and submitted to the Ohio Department of Education each May and November, is the primary document used to assess the financial health of the district.

According to the latest forecasted projections and assumptions, the district will have a positive cash balance through Fiscal Year 2027. However, the district is expected to spend into the cash reserves/balance as early as Fiscal Year 2024.

Prior to last week’s Board meeting, Mr. Smith met with the schools’ Finance Advisory Council to discuss the forecast. He said everyone on the advisory council was in agreement that the district had sufficient revenues and would not need to seek additional revenue before the end of the 2023 calendar year.

According to Mr. Smith, “Two key factors have kept us from deficit spending this far past our 2019 levy: the one-time federal dollars related to the COVID pandemic and sizeable increases in School District Income Tax payments.”

Mr. Smith also went into detail about many of the unknowns of future revenue projections, which include flat funding of state support, potential income tax anomalies, and an upcoming property tax reappraisal from Franklin County.

“While it is rare for Bexley to see a reduction in property tax collections and state aid payments, we have experienced reductions in the School District Income Tax payments,” he explained.

In 2022, the Bexley Board of Education passed a cash-reserve policy stating that if the schools’ five-year forecast should have less than 70 days of operating cash within the first four years, the Treasurer shall report such a finding. The forecast presently shows 96 days of operating cash in Fiscal Year 2026, but 33 days in Fiscal Year 2027.

The complete five-year forecast document is available on the district’s website.

Published May 18, 2023 | District Newsletter

Bexley Schools Treasurer, Staff Receive State Audit Award

Bexley Schools’ Treasurer Kyle Smith and his staff recently earned the Auditor of State Award for having a clean audit of their work managing the school district’s finances.Given by state Auditor Keith Faber, the award recognizes Ohio government entities that meet the criteria of a “clean” audit report. “Clean” audits show no findings for recovery or indication of any weaknesses or deficiencies in their record-keeping or financial processes, nor indicate any financial or other concerns, such as public-records or banking issues.

Additionally, the district received an “Outstanding Achievement” designation in relation to open and transparent government. Using a star system, the state auditor grades government entities on whether they follow the auditor’s seven best practices in regard to the state’s Sunshine Law requirements.

The “Outstanding Achievement” rating is the state Auditor’s second-highest designation, indicating that Bexley Schools follow up to four of the state’s best practices.

“The STAR-rating program is new,” said Treasurer Smith. “We’re happy with our ‘Outstanding Achievement’ rating, but now we’re aiming for the highest designation in the future.”

Published March 30, 2023 | District Newsletter