HEATH CITY SCHOOL DISTRICT
DRAFT
12/21/2021
Heath, Ohio
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
HEATH CITY SCHOOL DISTRICT
DRAFT
12/21/2021
Heath, Ohio
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
June 30, 2021
Prepared by:
Mr. Karl Zarins
Treasurer
HEATH CITY SCHOOL DISTRICT
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TABLE OF CONTENTS
INTRODUCTORY SECTION
A Letter of Transmittal ............................................................................................. v
B Members of the Board of Education and Administration ........................................... xi
C School District Organizational Chart ........................................................................ xii
D GFOA Certificate of Achievement .......................................................................... xiii
FINANCIAL SECTION
A Independent Auditor’s Report ..................................................................................... 1
B Management’s Discussion and Analysis ..................................................................... 5
C Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position.................................................................................. 18
Statement of Activities ...................................................................................... 21
Fund Financial Statements:
Governmental Funds:
Balance Sheet .................................................................................................... 22
Reconciliation of Total Governmental Fund Balances to Net Position of
Governmental Activities ............................................................................. 23
Statement of Revenues, Expenditures and Changes in Fund Balances .............. 24
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities.... 26
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual (Non-GAAP Budgetary Basis):
General Fund............................................................................................. 28
Notes to the Basic Financial Statements ................................................................ 30
D Required Supplementary Information:
Schedule of District’s Proportionate Share of the Net
Pension Liability ............................................................................................... 78
Schedule of District’s Pension Contributions .................................................... 80
Schedule of District’s Proportionate Share of the Net Other
Postemployment Benefits (OPEB) Liability (Asset) ......................................... 82
Schedule of District’s Other Postemployment
Benefit (OPEB) Contributions .......................................................................... 84
Notes to the Required Supplementary Information ................................................ 86
I
II
HEATH CITY SCHOOL DISTRICT
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E Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds Statements:
Combining Balance Sheet – Nonmajor Governmental Funds ........................... 95
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds................................................ 96
Combining Balance Sheet – Nonmajor Special Revenue Funds ....................... 97
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Special Revenue Funds .......................................... 100
Combining Balance Sheet – Nonmajor Capital Projects Funds ....................... 104
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Capital Projects Funds ........................................... 105
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual (Non-GAAP Budgetary Basis):
Major Governmental Funds:
Debt Service Fund:
Bond Retirement Fund ....................................................................... 106
Nonmajor Governmental Funds:
Special Revenue Funds:
Food Service Fund............................................................................ 107
Uniform School Supply Fund ........................................................... 108
Rotary Fund ...................................................................................... 109
Public School Support Fund ............................................................. 110
Student Managed Student Activity Fund .......................................... 111
District Managed Student Activity Fund .......................................... 112
Data Communications Fund ............................................................. 113
Student Wellness and Success Fund ................................................. 114
Other State Grants Fund ................................................................... 115
Elementary and Secondary School Emergency Relief Fund ............. 116
Coronavirus Relief Fund .................................................................. 117
Title VI-B Fund ................................................................................ 118
Title III Limited English Proficiency Fund ....................................... 119
Title I Fund ....................................................................................... 120
IDEA Preschool Grant for the Handicapped Fund............................ 121
Improving Teacher Quality Fund ..................................................... 122
Other Federal Grants Fund ............................................................... 123
Capital Projects Funds:
Permanent Improvement Fund .......................................................... 124
Building Fund ................................................................................... 125
HEATH CITY SCHOOL DISTRICT
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STATISTICAL SECTION
Net Position by Component - Last Ten Years ..................................................................... S 2
Changes in Net Position - Last Ten Years ........................................................................... S 4
Fund Balances, Governmental Funds - Last Ten Years ....................................................... S 8
Changes in Fund Balances, Governmental Funds - Last Ten Years .................................. S 10
Assessed Valuations and Estimated True Values of Taxable Property - Last Ten
Calendar Years .................................................................................................................. S 14
Property Tax Rates of Direct and Overlapping Governments - Last Ten
Calendar Years .................................................................................................................. S 16
Principal Taxpayers - Real Estate Tax and Public Utilities Personal Property -
Current Year and Nine Years Ago..................................................................................... S 19
Property Tax Levies and Collections - Last Ten Years ..................................................... S 20
Ratio of Outstanding Debt By Type - Last Ten Years ....................................................... S 22
Ratios of General Bonded Debt Outstanding - Last Ten Years ......................................... S 24
Computation of Direct and Overlapping Debt Attributable to Governmental
Activities - Current Year ................................................................................................... S 27
Debt Limitations - Last Ten Years .................................................................................... S 28
Demographic and Economic Statistics - Last Ten Years ................................................... S 30
Principal Employers - Current Year and Nine Years Ago ................................................. S 33
School District Employees by Type - Last Ten Years ....................................................... S 34
Operating Indicators - Cost per Pupil - Last Ten Years ..................................................... S 36
Operating Indicators by Function - Last Ten Years ........................................................... S 38
Operating Indicators - Teacher Base Salaries - Last Ten Years ......................................... S 40
Capital Asset Statistics by Building - Last Ten Years ....................................................... S 42
Educational and Operating Statistics - Last Ten Years ...................................................... S 44
III
HEATH CITY SCHOOL DISTRICT
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INTRODUCTORY SECTION
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December 27, 2021
Board of Education Members and Citizens of the Heath City School District:
As the Superintendent and Treasurer of the Heath City School District (the District), we are pleased to
submit to you this Comprehensive Annual Financial Report issued by the District. This Comprehensive
Annual Financial Report for the fiscal year ended June 30, 2021 is prepared in accordance with
accounting principles generally accepted in the United States of America (GAAP) and in conformance
with standards of financial reporting established by the Governmental Accounting Standards Board
(GASB) using guidelines recommended by the Government Finance Officers Association of the United
States and Canada (GFOA).
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation,
including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed
data is accurate in all material respects and is reported in a manner designed to present fairly the financial
position and results of operations of the District. All disclosures necessary to enable the reader to gain an
understanding of the District’s financial activities have been included.
Accounting principles generally accepted in the United States of America (GAAP) requires that
management provide a narrative introduction, overview and analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The Heath City School
District’s MD&A can be found immediately following the independent auditor’s report.
The District provides a full range of education programs and services to 1,733 students. These include
elementary and secondary curriculum offerings at the general, college preparatory, and vocational levels,
a broad range of co-curricular and extracurricular activities, and special education services.
HEATH CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2021
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ECONOMIC CONDITIONS AND OUTLOOK
The District is located within the City of Heath in Licking County, which is situated in the east-central
part of the state. Heath is a community of 10,412 people. It is located approximately 6 miles north of
Interstate 70, 45 miles east of Columbus and is bounded on the north by Newark, the county seat of
Licking County. State Routes 79 and 13 serve as the major transportation arteries.
The COVID-19 epidemic in 2020 and 2021 caused a disruption for many of the businesses in Heath,
particularly in service and retail sectors. While the District has seen some suppression and challenges to
values in these sectors, the economic uncertainty largely subsided due to the introduction of effective
vaccines. Other sectors have fared better. In 2020, the businesses located on the campus of the Heath-
Newark-Licking County Port Authority’s Central Ohio Aerospace and Technology Center increased their
employment by roughly 13%, according to information from the HNLCPA. Carvana opened its
prototype automobile receiving center and continually hired new employees throughout 2020, and
Nature’s One, an organic infant nutrition manufacturing facility, began operations and hired staff. These
are just a few examples of what proved to be only a slight dip in economic activity in the city.
Future job growth looks promising in the coming year, as facility expansions in the area (but not in the
District) were approved during 2020 for Vance Outdoors (20,000 additional square feet) and Robertson
Construction (1,500 square feet) for their new business operations. Additionally, two industrial
speculative buildings located on International Drive (20,000 sq. ft. and 67,000 sq. ft.) were completed in
2020 and are being actively marketed. Plans are also in the works for a 750,000 square foot facility to be
constructed in 2021 between Keller Drive and Thornwood Drive.
Long-Term Financial Planning – The District prepares a five-year forecast for use as a tool for long
range planning. The five-year forecast projects local and state revenues, spending patterns within each
area of the budget, and cash balances in the District’s operating fund. The District uses the five-year
forecast to provide a basis for making financial decisions, including the construction of the annual budget,
adjustments to staffing levels, collective bargaining, and the placement of tax levies on the ballot. The
District currently maintains a solid cash balance as a result of historically responsible management of its
finances.
While the early part of FY 21 was characterized by financial uncertainty due to the pandemic, in large
part, the District was able to weather the COVID-19 pandemic with the introduction of federal funding
and the availability of a vaccine. In FY 21, the District temporarily offered an online and in-person
education option. To offset these costs, safety and hygiene costs, educational remediation costs, and the
loss in state funding, the District was awarded almost $3.1 million in COVID-19 related federal funding
to be spent over several years.
In addition, the financial impact of the pandemic on the District has generally been more mild than
originally feared. General Fund revenues increased 1.3% on a cash basis compared to FY20. FY21 saw
property tax collections increase 0.7% and prior state funding cuts were partially reversed allowing an
increase of 3.6% compared to FY20. Meanwhile, General Fund expenditures only increased 1.9% in
FY21 vs. FY20 on a cash basis as additional costs related to COVID-19 were largely allocated to federal
grant funds and capital outlay costs were reallocated to the new permanent improvement levy fund.
HEATH CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2021
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OPERATING RESULTS AND MAJOR INITIATIVES
Current:
During fiscal year 2021, the District continued to work toward both operational and educational goals.
Academically, the 2020-21 school year did have achievement and value-added data, but did not have
letter grades, nor an overall district grade. While the District’s achievement scores declined from a
performance index score of 85.7, compared to a performance index of 90.6 in 2018-19, the District
actually improved when performance was looked at relative to the state. While the state average
performance index score decreased 10 points, Heath City Schools had only a 5 point decline. Looking
further at District data, specifically value-added, Heath City Schools compared more favorably to Ohio
districts than at any time in district history. Value-added (student growth) data was above expected
growth at the district, school, grade and teacher levels. District leadership believe this outstanding
performance is attributed to the continued work that we do on instructional improvement, but also on the
fact that our students were in person, five days a week for the entire 2020-21 school year. There were
many districts in Ohio that were either remote or hybrid for a good portion of the year, whereas Heath
City Schools had an in-person and remote learning option. The District had 15% of its students learning
remotely in a different curriculum, and the data above includes those students, but all other students
received in-person instruction.
Operationally, the District made several strides to modernize facilities, minimize financial variability, and
improve its business operations.
The residents of the Heath City Schools graciously passed a 4.0 mil permanent improvement levy
in April of 2020 and began receiving funding the second half of FY 21. This allows the District to
more proactively perform maintenance on its aging facilities and avoid large unexpected repairs.
It also offers flexibility to the District to either maintain existing facilities or potentially reallocate
a portion of these funds toward financing new facilities, should state funding become available
and voters approve financing a new construction project. In FY 21, the District replaced visitor
bleachers at its football stadium and an ionization system in two of its buildings to help prevent
the spread of airborne pathogens such as COVID-19. These costs were paid out of the Permanent
Improvement Fund, rather than the General Fund, as would have been the practice in prior years.
The District continued to modernize its administrative software and systems by expanding the
capacity of its Enterprise Resource Planning software to include a human resources module and
functionality.
HEATH CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2021
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Future:
Each year, the District updates a five-year continuous improvement plan developed by an administrative
team consisting of the Superintendent, administrators, staff members, business members and the
community. Using the Decision Framework and the Ohio Improvement Process the team identifies and
develops goals, objectives and strategies to help ensure all students learn and grow. Despite the realities
of operating during a pandemic, the District continues to work to improve its operations and educational
opportunities for its students.
Academically, the District is refocusing and continuing our work on instructional improvement during the
2021-22 school year. Our strongest concentration of work will be in the area of literacy. The District is
in year two of its comprehensive school literacy grant, and is converting to a researched based ELA
curriculum in grades 3-8. The District hired a literacy coordinator who is able to certify our teachers in
multi-sensory structured literacy, which is helpful in not only improving literacy instruction, but also in
meeting the requirements of the dyslexia support laws which are new in the 2021-22 school year.
District officials are also continuing work on the following initiatives:
Continued improvement of technological infrastructure.
Offer various classes of summer remediation and credit recovery at no cost to students and their
families.
Strive to meet all state indicators on the District report card.
Fully implement the “Leader in Me” program in the elementary grades (K-5) and the LEAD
program in grades 7-12.
Continue excellent growth on the state value-added measure, which is currently an “A”.
Utilize STAR Early Literacy, STAR Reading and Math Assessments and multiple dyslexia
screeners to identify students needing intervention, referral for possible gifted identification
and/or progress monitoring of students.
Utilize all available data to drive curricular decisions in the regular curriculum, intervention areas
and special education.
Operationally, the District will continue to expand the capabilities of its new ERP software system to
automate portions of its Fixed Asset tracking. Furthermore, the District will continue to prioritize and
address maintenance needs of its physical assets. In FY 22, the District expects to complete a roofing
project, and additional upgrades of its HVAC system.
HEATH CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2021
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FINANCIAL INFORMATION
ACCOUNTING SYSTEM -- The District’s accounting system is organized on a fund basis. Each fund
is a separate self-balancing accounting entity. The basis of accounting determines when transactions are
recorded in the financial records and reported on the financial statements. Government-wide financial
statements are prepared using the accrual basis of accounting. Governmental funds use the modified
accrual basis of accounting. Fiduciary funds also use the accrual basis of accounting.
INTERNAL CONTROLS -- The Treasurer of the District is responsible for establishing internal
controls designed to ensure that the assets of the District are protected from loss, theft, or misuse, and to
ensure that adequate accounting data is compiled to allow for the preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America. The
Management Team is responsible for assisting with implementation of the established internal controls.
The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed
the benefits likely to be derived; and (2) the valuation of cost and benefit requires estimates and
judgments by management.
BUDGETARY CONTROLS -- All governmental fund types are subject to annual expenditure budgets.
The procedures below outline the District’s budgetary procedures:
1. The county budget commission certifies its actions to the District by March 1. As part of this
certification, the District receives the official certificate of estimated resources which states the
projected receipts of each fund. On or about July 1, this certificate is amended to include any
unencumbered balances from the preceding year.
2. An annual appropriations measure is passed upon receipt of the County Auditor’s final tax
revenue estimates, October or November of each year for the period July 1 to June 30.
Unencumbered appropriations lapse at year-end and encumbered appropriations are reported as
expenditures in the current year. The Board adopts temporary appropriations at its June Board
meeting to cover expenditures until the adoption of the permanent appropriations. The
appropriations measure may be amended or supplemented during the year as new information
becomes available. Individual buildings and/or departments are given building budgeting funds
for instructional supplies, custodial supplies, meeting and mileage expenses and equipment.
Buildings and/or departments may move funds within their budgets with approval of the
Superintendent and Treasurer. Appropriations may not exceed estimated resources and
expenditures may not exceed appropriations in any fund at the fund level.
Additionally, the District maintains an encumbrance accounting system as a useful technique of
accomplishing budgetary control. Under encumbrance accounting, purchase orders, contracts and other
commitments for expenditures of funds are recorded in order to reserve that portion of the applicable
appropriation.
HEATH CITY SCHOOL DISTRICT
Letter of Transmittal
For the Fiscal Year Ended June 30, 2021
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OTHER INFORMATION
INDEPENDENT AUDIT -- This report includes an unmodified audit report regarding the District's
financial statements. The audit was conducted by Julian & Grube, Inc. on behalf of Keith Faber, Auditor
of State. The Independent Auditor's Report on the basic financial statements is included in the financial
section of this report.
AWARDS -- The Government Finance Officers Association of the United States and Canada (GFOA)
awards a Certificate of Achievement for Excellence in Financial Reporting to those governmental entities
who qualify. To be awarded a Certificate of Achievement, a governmental unit must prepare an easily
readable and efficiently organized Comprehensive Annual Financial Report whose contents satisfy all
program standards. The report must satisfy both accounting principles generally accepted in the United
States of America (GAAP) and applicable legal requirements respective to the reporting entity. A
Certificate of Achievement is valid for a period of one year only. The District received a Certificate of
Achievement for the year ended June 30, 2020. We believe this, our twentieth Comprehensive Annual
Financial Report, meets the high standards set by the GFOA for a Certificate of Achievement for
Excellence in Financial Reporting and we are submitting it to GFOA.
ACKNOWLEDGMENTS -- The preparation of the Comprehensive Annual Financial Report was made
possible by the diligence of the Treasurer’s staff. We are also grateful for the services of Donald J.
Schonhardt & Associates, Inc. for their assistance in preparing this report. We truly appreciate the
contribution made by each staff member in the preparation of this report.
In closing, without the patience and support of the Treasurer’s Office Staff and the Board of Education,
preparation of this report would not have been possible.
Respectfully submitted,
Trevor Thomas
Karl Zarins
Superintendent
Treasurer
HEATH CITY SCHOOL DISTRICT
Members of the Board of Education and Administration
For the Fiscal Year Ended June, 30, 2021
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Members of the Board of Education
Name
Title
Years of Service
Ms. Debbie Kelley
President
13
Mr. Sam Smith
Vice President
9
Dr. Craig Dyer
Member
5
Dr. Melody Klontz
Member
5
Ms. Dianne Winter
Member
5
Administration
Name
Title
Years of Service
Position
Total
Dr. Trevor Thomas
Superintendent
8
19
Mr. Karl Zarins
Treasurer
8
19
Ms. Kelly Holbrook
Assistant Superintendent
8
23
HEATH CITY SCHOOL DISTRICT
Organizational Chart
For the Fiscal Year Ended June 30, 2021
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Psychologist
Citizens
Secretary/
EMIS
Coordinator
Superintendent
Board of
Education
Secretary
High School
Principal
Treasurer
Elementary School
Principals
Special Education
Director
Maintenance/
Transportation
Supervisor
Assistant Superintendent
Cafeteria
Supervisor
Technology
Director
Accounting
Supervisor
Middle School
Principal
HEATH CITY SCHOOL DISTRICT
Government Finance Officers Association of the United States and Canada
Certificate of Achievement for Excellence in Financial Reporting
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12/21/2021
HEATH CITY SCHOOL DISTRICT
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12/28/2021
FINANCIAL SECTION
Independent Auditor’s Report
Heath City School District
Licking County
107 Lancaster Drive
Heath, Ohio 43056
To the Board of Education:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the Heath City School District, Licking County, Ohio, as of and for the
fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the
Heath City School District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Heath City School District’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Heath City School District’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information of
the Heath City School District, Licking County, Ohio, as of June 30, 2021, and the respective changes in financial
position, thereof and the budgetary comparison for the general fund for the fiscal year then ended in accordance with
accounting principles generally accepted in the United States of America.
1
Heath City School District
Independent Auditor’s Report
Page 2
Emphasis of Matters
As described in Note 2 to the financial statements, in 2021, the Heath City School District adopted new accounting
guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. As described
in Note 19 to the financial statements, the financial impact of COVID-19 and the continuing emergency measures
may impact subsequent periods of the Heath City School District. Our opinions are not modified with respect to
these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis, and schedules of net pension and other post-employment benefit assets and liabilities and pension and
other post-employment benefit contributions listed in the table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Heath City School District’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and statistical section, are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund
financial statements and schedules are fairly stated in all material respects in relation to the basic financial
statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
2
Heath City School District
Independent Auditor’s Report
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2021, on
our consideration of the Heath City School District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Heath City
School District’s internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Heath City School District’s
internal control over financial reporting and compliance.
Julian & Grube, Inc.
December 27, 2021
3
HEATH CITY SCHOOL DISTRICT
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HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
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The discussion and analysis of Heath City School District’s (the District) financial performance provides
an overall review of the District’s financial activities for the fiscal year ended June 30, 2021. The intent
of this discussion and analysis is to look at the District’s financial performance as a whole; readers should
also review the financial statements and notes to the basic financial statements to enhance their
understanding of the District’s financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2021 are as follows:
In total, net position increased $1,299,724, which represents a 70.6% decrease in the net deficit from the
2020 net deficit.
General revenues accounted for $20,712,518 in revenue or 80.3% of all revenues. Program specific
revenues in the form of charges for services and sales and grants and contributions accounted for
$5,068,416 or 19.7% of total revenues of $25,780,934.
The District had $24,481,210 in expenses related to governmental activities; only $5,068,416 of these
expenses were offset by program specific charges for services and sales and grants and contributions.
Among major funds, the general fund had $20,357,143 in revenues and $18,823,550 in expenditures.
The general fund’s fund balance increased from $11,234,319 to $12,687,912.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – management’s discussion and analysis and the basic financial
statements, required supplemental information, and an optional section that presents combining
statements for nonmajor governmental funds. The basic financial statements include two kinds of
statements that present different views of the District:
These statements are as follows:
1. The Government-Wide Financial Statements – These statements provide both long-term and
short-term information about the District’s overall financial status.
2. The Fund Financial Statements – These statements focus on individual parts of the District,
reporting the District’s operations in more detail than the government-wide statements.
The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
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Government-wide Statements
The government-wide statements report information about the District as a whole using accounting
methods similar to those used by private-sector companies. The statement of net position includes all of
the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. All of
the current year’s revenues and expenses are accounted for in the statement of activities regardless of
when cash is received or paid.
The two government-wide statements report the District’s net position and how it has changed. Net-
position (the difference between the District’s assets and deferred outflows of resources and liabilities and
deferred inflows of resources) is one way to measure the District’s financial health or position.
Over time, increases or decreases in the District’s net position are an indicator of whether its financial
health is improving or deteriorating, respectively.
To assess the overall health of the District you need to consider additional nonfinancial factors such as the
property tax base, current property tax laws, student enrollment growth and facility conditions.
The government-wide financial statements of the District reflect the following category for its activities:
Governmental Activities – Most of the District’s programs and services are reported here
including instruction, support services, operation and maintenance of plant, pupil
transportation and extracurricular activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the District’s most significant
funds, not the District as a whole. Funds are accounting devices that the District uses to keep track of
specific sources of funding and spending for particular purposes.
Governmental Funds – Most of the District’s activities are reported in governmental funds, which focus
on how money flows into and out of those funds and the balances left at year-end available for spending
in future periods. These funds are reported using an accounting method called modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the District’s general government
operations and the basic services it provides. Governmental fund information helps you determine
whether there are more or fewer financial resources that can be spent in the near future to finance
educational programs. The relationship (or differences) between governmental activities (reported in the
Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the
financial statements.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE
The Statement of Net Position provides a perspective of the District as a whole. The following table
provides a summary of the District’s net position for 2021 compared to 2020:
Increase
(Decrease)
Restated
2021 2020
Assets:
Current and other assets $30,418,736 $27,242,856 $3,175,880
Net OPEB Asset 1,179,055 1,073,566 105,489
Capital assets, Net 11,647,302 11,786,279 (138,977)
Total assets 43,245,093 40,102,701 3,142,392
Deferred outflows of resources:
Pension
4,280,393 3,893,319
387,074
OPEB 665,198 459,632 205,566
Total deferred outflows of resources 4,945,591 4,352,951 592,640
Liabilities:
Net pension liability 20,716,468 18,279,901 2,436,567
Net OPEB liability 1,524,887 1,693,185 (168,298)
Long-term debt outstanding 9,041,173 10,113,563 (1,072,390)
Other liabilities 2,248,588 2,490,759 (242,171)
Total liabilities 33,531,116 32,577,408 953,708
Deferred inflows of resources:
Property Tax
12,725,337 10,871,123
1,854,214
Refunding
172,550 201,307
(28,757)
Pension
120,356 863,641
(743,285)
OPEB 2,183,456 1,784,028 399,428
Total deferred inflows of resources 15,201,699 13,720,099 1,481,600
Net position (deficit):
Net Investment in capital assets 3,920,842 3,646,520 274,322
Restricted 2,713,189 2,474,259 238,930
Unrestricted (7,176,162) (7,962,634) 786,472
Total net deficit ($542,131) ($1,841,855) $1,299,724
Governmental
Activities
Net position of the District’s governmental activities increased by $1,299,724. This increase is partly
attributed to the increase in taxes due to the revaluation of property in the District and partly as a result of
maintaining expenses below revenues. As presented in the table of Changes in Net Position, total
governmental expenses of $24,481,210 were offset by program revenues of $5,068,416 and general
revenues of $20,712,518.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
The implementation of GASB Statement 68, “Accounting and Financial Reporting for Pensions—an
Amendment of GASB Statement 27” in fiscal year 2015 and GASB Statement 75, “Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions in fiscal year 2018,” significantly
revised accounting for costs and liabilities related to pension and to other postemployment benefits
(OPEB). For reasons discussed below, many end users of this financial statement will gain a clearer
understanding of the District’s actual financial condition by adding deferred inflows related to pension
and OPEB, the net pension liability and the net OPEB liability to the reported net position and subtracting
deferred outflows related to pension and OPEB and the net OPEB asset.
Governmental Accounting Standards Board standards are national and apply to all government financial
reports prepared in accordance with generally accepted accounting principles. Prior accounting for
pensions (GASB 27) and postemployment benefits (GASB 45) focused on a funding approach. This
approach limited pension and OPEB costs to contributions annually required by law, which may or may
not be sufficient to fully fund each plan’s net pension liability or net OPEB liability. GASB 68 and
GASB 75 take an earnings approach to pension and OPEB accounting; however, the nature of Ohio’s
statewide pension/OPEB plans and state law governing those systems requires additional explanation in
order to properly understand the information presented in these statements.
GASB 68 and GASB 75 require the net pension liability and the net OPEB liability to equal the District’s
proportionate share of each plan’s collective:
1. Present value of estimated future pension/OPEB benefits attributable to active and inactive
employees’ past service
2. Minus plan assets available to pay these benefits
GASB notes that pension and OPEB obligations, whether funded or unfunded, are part of the
“employment exchange” – that is, the employee is trading his or her labor in exchange for wages,
benefits, and the promise of a future pension and other postemployment benefits. GASB noted that the
unfunded portion of this promise is a present obligation of the government, part of a bargained-for benefit
to the employee, and should accordingly be reported by the government as a liability since they received
the benefit of the exchange. However, the District is not responsible for certain key factors affecting the
balance of these liabilities. In Ohio, the employee shares the obligation of funding pension benefits with
the employer. Both employer and employee contribution rates are capped by State statute. A change in
these caps requires action of both Houses of the General Assembly and approval of the Governor. Benefit
provisions are also determined by State statute. The Ohio Revised Code permits, but does not require the
retirement systems to provide healthcare to eligible benefit recipients. The retirement systems may
allocate a portion of the employer contributions to provide for these OPEB benefits.
The employee enters the employment exchange with the knowledge that the employer’s promise is
limited not by contract but by law. The employer enters the exchange also knowing that there is a
specific, legal limit to its contribution to the retirement system. In Ohio, there is no legal means to
enforce the unfunded liability of the pension/OPEB plan as against the public employer. State law
operates to mitigate/lessen the moral obligation of the public employer to the employee, because all
parties enter the employment exchange with notice as to the law. The retirement system is responsible for
the administration of the pension and OPEB plans.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
Most long-term liabilities have set repayment schedules or, in the case of compensated absences (i.e. sick
and vacation leave), are satisfied through paid time-off or termination payments. There is no repayment
schedule for the net pension liability or the net OPEB liability. As explained above, changes in benefits,
contribution rates, and return on investments affect the balance of these liabilities, but are outside the
control of the local government. In the event that contributions, investment returns, and other changes are
insufficient to keep up with required payments, State statute does not assign/identify the responsible party
for the unfunded portion. Due to the unique nature of how the net pension liability and the net OPEB
liability are satisfied, these liabilities are separately identified within the long-term liability section of the
statement of net position.
In accordance with GASB 68 and GASB 75, the District’s statements prepared on an accrual basis of
accounting include an annual pension expense and an annual OPEB expense for their proportionate share
of each plan’s change in net pension liability and net OPEB liability, respectively, not accounted for as
deferred inflows/outflows.
At year-end for governmental activities, capital assets represented 27% of total assets. Capital assets
include land, land improvements, buildings and improvements, furniture, fixtures and equipment and
vehicles. Capital assets, net of related debt to acquire the assets at June 30, 2021 were $3,920,842. These
capital assets are used to provide services to the students and are not available for future spending.
Although the District’s investment in capital assets is reported net of related debt, it should be noted that
the resources to repay the debt must be provided from other sources, since capital assets may not be used
to liquidate these liabilities. A portion of the District’s net position, $2,713,189, represents resources that
are subject to external restriction on how they may be used. Excluding the effect of GASB 68 and GASB
75, the District has approximately $11.2 million in unrestricted net position which may be used to meet
the District’s ongoing obligations to the students and creditors.
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HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
Changes in Net Position – The following table shows the changes in net position for fiscal years 2021 and
2020:
Increase
(Decrease)
Restated
2021 2020
Revenues
Program Revenues:
Charges for Services and Sales $2,535,116 $2,735,811 ($200,695)
Operating Grants and Contributions 2,492,212 1,635,333 856,879
Capital Grants and Contributions 41,088 837,500 (796,412)
Total Program Revenues 5,068,416 5,208,644 (140,228)
General Revenues:
Property Taxes 12,561,869 11,944,337 617,532
Grants and Entitlements 7,737,617 7,392,727 344,890
Other 413,032 546,043 (133,011)
Total General Revenues 20,712,518 19,883,107 829,411
Total Revenues 25,780,934 25,091,751 689,183
Program Expenses
Instruction 14,273,518 13,103,894 1,169,624
Support Services:
Pupils Support 1,308,266 1,214,501 93,765
Instructional Staff Support 967,695 846,060 121,635
Board of Education 156,391 138,228 18,163
Administration 1,924,020 1,730,240 193,780
Fiscal Services 705,579 718,154 (12,575)
Business 16,334 11,926 4,408
Operation and Maintenance of Plant 1,706,530 1,736,633 (30,103)
Pupil Transportation 786,334 815,607 (29,273)
Central 419,302 409,538 9,764
Operation of Non-Instructional Services:
Food Service Operations 970,484 911,863 58,621
Extracurricular Activities 1,000,564 995,357 5,207
Interest and Fiscal Charges 246,193 348,477 (102,284)
Total Expenses 24,481,210 22,980,478 1,500,732
Change in Net Position 1,299,724 2,111,273 (811,549)
Beginning Net Deficit, Restated (1,841,855) (3,953,128) 2,111,273
Ending Net Deficit ($542,131) ($1,841,855) $1,299,724
Governmental
Activities
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
Governmental Activities
The primary sources of revenues for governmental activities are derived from property taxes and grants
and entitlements. The primary sources total $20,299,486 and represent 98% of total general revenue.
The unique nature of property taxes in Ohio creates the need to routinely seek voter approval for
operating funds. In general, the overall revenue generated by the levy will not increase solely as a result
of inflation. As an example, a homeowner with a home valued at $100,000 and taxed at 1.0 mill would
pay $35.00 annually in taxes. If three years later the home were reappraised and increased to $200,000
(and this inflationary increase in value is comparable to other property owners) the effective tax rate
would become .5 mills and the owner would still pay $35.00.
Property taxes made up 49% of revenues for governmental activities for Heath City Schools in fiscal year
2021. The District’s reliance upon tax revenues is demonstrated by the following graph:
Percent
Revenue Sources 2021 of Total
General Grants $7,737,617 30.01%
Program Revenues 5,068,416 19.66%
General Tax Revenues 12,561,869 48.73%
General Other 413,032 1.60%
Total Revenue $25,780,934 100.00%
30.01%
19.66%
48.73%
1.60%
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT’S FUNDS
The District’s governmental funds reported a combined fund balance of $15,107,922, which is higher
than last year’s total of $13,592,056. The schedule below indicates the fund balance and the total change
in fund balance by fund type as of June 30, 2021 and 2020.
Restated
Fund Balance Fund Balance Increase
June 30, 2021 June 30, 2020 (Decrease)
General $12,687,912 $11,234,319 $1,453,593
Bond Retirement 1,956,731 1,684,827 271,904
Other Governmental 463,279 672,910 (209,631)
Total $15,107,922 $13,592,056 $1,515,866
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
General Fund – The tables that follow assist in illustrating the financial activities and balance of the
General Fund:
Restated
2021 2020 Increase
Revenues Revenues (Decrease)
Taxes $10,293,552 $10,344,526 ($50,974)
Tuition 2,130,956 2,047,087 83,869
Investment Earnings (5,519) 323,518 (329,037)
Class Materials and Fees 76,136 77,337 (1,201)
Intergovernmental - State 7,478,464 7,243,918 234,546
All Other Revenue 383,554 195,754 187,800
Total $20,357,143 $20,232,140 $125,003
General Fund revenues in 2021 increased approximately 0.6% compared to revenues in fiscal year 2020;
led by increases in state revenues and other revenues. State funding increased as the financial impact of
the COVID-19 pandemic became better understood and the Governor restored a portion of funding cuts
instituted in fiscal year 2020. Other revenues include a refund of prior year expenditures. The District
receives various contracted instructional services from the Licking County Educational Service Center
(ESC). These expenses are estimated at the beginning of the year and deducted from state funding. At
the conclusion of the year these expenses are compared to actual expenses. If estimated expenses exceed
actual expenses, as in this case, the difference is credited to the next year and recognized as revenue.
Tuition increased from the prior year due to a higher number of students attending Heath CSD through
open enrollment. There was a 13.3% increase in the number of students enrolled under the open
enrollment program. This may have been driven by the District offering in person instruction while
neighboring districts did not.
These increases are offset by declines in investment earnings and tax revenue. Investment earnings
decreased due to the decline in the fair value of the investments from 2020 and a decline in interest
earnings. The tax decrease is attributable to tax advances that are available and fluctuate on an annual
basis. The advance for fiscal year 2021 was less than for fiscal year 2020.
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HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
2021 2020 Increase
Expenditures Expenditures (Decrease)
Instruction $11,683,630 $11,177,894 $505,736
Supporting Services:
Pupils Support 662,274 778,249 (115,975)
Instructional Staff Support 839,231 707,007 132,224
Board of Education 156,391 138,228 18,163
Administration 1,714,132 1,501,501 212,631
Fiscal Services 635,824 634,393 1,431
Business 16,334 11,926 4,408
Operation and Maintenance of Plant 1,545,663 1,522,193 23,470
Pupil Transportation 640,445 727,512 (87,067)
Central 365,706 372,434 (6,728)
Operation of Non-Instructional Services:
Food Service Operations 20,671 1,062 19,609
Extracurricular Activities 481,140 600,917 (119,777)
Capital Outlay 1,898 495,108 (493,210)
Debt Service:
Principal Retirement 58,472 55,378 3,094
Interest and Fiscal Charges 1,739 4,832 (3,093)
Total $18,823,550 $18,728,634 $94,916
The expenditures increased by $94,916 or 0.5% compared to the prior year. Instruction services increased
4.5% from the prior year, accounting for the majority of the increase in expenditures from fiscal year
2020. The majority of these increases are explained by an increase in negotiated salaries in fiscal year
2021. Finally, the District’s curriculum replacement and improvement cycle required additional resources
in fiscal year 2021 compared to prior years.
Instructional staff support costs increased 18.7% from the prior year. The majority of this increase is due
to the addition of aides and additional non-contractual duty pay for teachers to respond to operating
conditions during pandemic conditions. These costs included the operation of an online option and
staffing classrooms during staff quarantines and challenges to find substitute teachers.
Administration costs increased 14.1% from the prior year. The majority of these increases is explained by
increases in salary and benefit costs due to negotiated salary increases, substitute costs for an extended
illness, additional salary costs of administering an online educational option, and other ancillary salary
costs that were better distributed to functional categories. In addition, there were also increases in supply
and purchased services costs to allow administrative staff to work from home in the event of mandated
closures and quarantines.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
Increases were offset by decreases in Pupil Support, Pupil Transportation, Extracurricular Activities, and
Capital Outlay. General Fund Capital Outlay represented the largest decline in costs in fiscal year 2021
compared to fiscal year 2020. The District passed a permanent improvement levy that requires the
establishment of its own fund to segregate revenues and expenditures. Therefore, these costs were
reallocated to the Permanent Improvement Fund; which is not reflected in the table above.
Extracurricular costs also declined 19.9% compared to fiscal year 2020. Because of the pandemic,
several extracurricular activities were cancelled or operated at a lesser capacity. Transportation costs
declined 12.0% compared to fiscal year 2020. Fiscal year 2020 costs included the purchase of a bus. In
fiscal year 2021 and going forward, these costs are reflected in the Permanent Improvement Fund.
Finally, pupil support costs declined 14.9% from the prior year largely because guidance counselor costs
were shifted to the Wellness Fund and federal grant funds; rather than being paid from the General Fund
as reflected above
Bond Retirement Fund – The fund balance increased 16.1% from fiscal year 2020. The District
refinanced its debt several years ago. However, more recently the District decided to maintain its taxing
authority to retire the debt early rather than to lower the tax rates. This bond retirement fund balance is
expected to continue to grow until there is a sufficient balance to retire its debt, and also end its bond levy
earlier.
GENERAL FUND BUDGETING HIGHLIGHTS
The District’s budget is prepared according to Ohio law and is based on accounting for certain
transactions on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted
fund is the General Fund.
During the course of fiscal year 2021 the District amended its General Fund budget several times. Final
budget amounts were $11,232 lower than original budget amounts. Actual expenditures (excluding other
financing uses), were 0.41% lower than originally budgeted expenditures and 0.47% lower than the final
budgeted expenditures. Final budget amounts and actual expenditures were tracked very closely.
Excluding other financing sources, revenues were 9.5% higher than originally budgeted and 0.3% higher
than the final budget. Deviations from the original budget are explained by a lower property tax
delinquency rate than anticipated, higher state funding than expected due to a mid-year reduction of
funding cuts, a higher open enrollment student population than originally anticipated, and a true up with
the Licking County ESC for overpayment for services in the prior year. The General Fund budget actual
revenue increased approximately $62,372 compared to the final budget estimates. This increase was a
result of higher state funding than anticipated.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal 2021, the District had $11,647,302 net of accumulated depreciation invested in land,
buildings, equipment, and vehicles. The following table shows fiscal year 2021 and 2020 balances:
Governmental Increase
Activities (Decrease)
2021 2020
Land $438,952 $438,952 $0
Land Improvements 3,500,009 3,102,709 397,300
Buildings and Improvements 23,612,500 23,085,263 527,237
Machinery and Equipment 1,678,380 1,632,810 45,570
Vehicles 1,067,041 1,105,670 (38,629)
Construction in Progress 0 240,381 (240,381)
Less: Accumulated Depreciation (18,649,580) (17,819,506) (830,074)
Totals $11,647,302 $11,786,279 ($138,977)
The District’s capital assets decreased in 2021 due to depreciation. Most of the depreciation was offset by
an increase in Land Improvements which consisted of visitor side bleachers and press box and an increase
in Building of a completed roof. In addition, the District purchased a new school bus and disposed of two
old school busses. Additional information on the District’s capital assets can be found in Note 9.
Debt
At June 30, 2021, the District had $9.0 million in general obligation bonds and compensated absences
outstanding, $1,113,877 due within one year. The following table summarizes the District’s debt
outstanding as of June 30, 2021 and 2020:
2021 2020
Governmental Activities:
General Obligation Bonds Payable $7,553,910 $8,655,813
Capital Leases Payable 0 58,472
Compensated Absences 1,487,263 1,399,278
Totals $9,041,173 $10,113,563
Under current state statutes, the District’s general obligation bonded debt issues are subject to a legal
limitation based on 9% of the total assessed value of real and personal property. At June 30, 2021, the
District’s outstanding debt was below the legal limit. Additional information on the District’s long-term
debt can be found in Note 12.
HEATH CITY SCHOOL DISTRICT
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021 Unaudited
DRAFT
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12/21/2021
ECONOMIC FACTORS
The Licking County Auditor performed its latest reappraisal of property values in calendar year 2017,
impacting collections for fiscal years 2018 and 2019. The county auditor conducts their reappraisal every
6
th
year, with an update the third year (CY 2020). This update impacts collections for fiscal years 2021
and 2022. Due to the strong real estate market in central Ohio, low unemployment and growth in Licking
County, property values are anticipated to appreciate or remain stable.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general
overview of the District’s finances and to show the District’s accountability for the money it receives. If
you have questions about this report or need additional financial information contact Mr. Karl Zarins,
Treasurer, Heath City School District.
HEATH CITY SCHOOL DISTRICT
DRAFT
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HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Statement of Net Position
June 30, 2021
Governmental
Activities
Assets:
Cash and Cash Equivalents 11,599,581$
Investments 4,684,974
Receivables:
Taxes 13,520,172
Accounts 12,606
Intergovernmental 288,325
Interest 13,351
Inventory 13,391
Prepaid Items 286,336
Net OPEB Asset 1,179,055
Capital Assets:
Nondepreciable Capital Assets 438,952
Depreciable Capital Assets, Net 11,208,350
Total Capital Assets, Net 11,647,302
Total Assets 43,245,093
Deferred Outflows of Resources:
Pension 4,280,393
OPEB 665,198
Total Deferred Outflows of Resources 4,945,591
Liabilities:
Accounts Payable 237,387
Accrued Wages and Benefits 1,658,921
Intergovernmental Payable 300,293
Early Retirement Incentive Payable 29,947
Accrued Interest Payable 22,040
Long Term Liabilities:
Due Within One Year 1,113,877
Due in More Than One Year:
Net Pension Liability 20,716,468
Net OPEB Liability 1,524,887
Other Amounts Due in More Than One Year 7,927,296
Total Liabilities 33,531,116
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Governmental
Activities
Deferred Inflows of Resources:
Property Taxes 12,725,337
Deferred Gain on Refunding 172,550
Pension 120,356
OPEB 2,183,456
Total Deferred Inflows of Resources 15,201,699
Net Position:
Net Investment in Capital Assets 3,920,842
Restricted For:
Capital Projects 416,777
Debt Service 1,948,331
Statutory Purposes 157,228
Federal and State Grant Programs 190,853
Unrestricted (Deficit) (7,176,162)
Total Net Position (Deficit) (542,131)$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
DRAFT
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HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Net (Expense)
Revenue and
Change in
Net Position
Expenses
Charges for
Services and Sales
Operating Grants
and Contributions
Capital Grants and
Contributions
Governmental
Activities
Governmental Activities:
Instruction 14,273,518$ 2,235,092$ 910,701$ 0$ (11,127,725)$
Support Services:
Pupils 1,308,266 0 672,605 0 (635,661)
Instructional Staff 967,695 0 75,793 0 (891,902)
Board of Education 156,391 0 0 0 (156,391)
Administration 1,924,020 0 44,853 0 (1,879,167)
Fiscal Services 705,579 0 0 0 (705,579)
Business 16,334 0 0 0 (16,334)
Operation and Maintenance of Plant 1,706,530 0 0 0 (1,706,530)
Pupil Transportation 786,334 0 7,905 41,088 (737,341)
Central 419,302 0 28,135 0 (391,167)
Operation of Non-Instructional Services:
Food Service Operations 970,484 169,945 752,220 0 (48,319)
Extracurricular Activities 1,000,564 130,079 0 0 (870,485)
Interest and Fiscal Charges 246,193 0 0 0 (246,193)
Total Governmental Activities
24,481,210$ 2,535,116$ 2,492,212$ 41,088$ (19,412,794)
10,246,008
1,422,031
893,830
7,737,617
14,794
398,238
20,712,518
1,299,724
(1,841,855)
(542,131)$
See accompanying notes to the basic financial statements
Change in Net Position
Net Position (Deficit) Beginning of Year, Restated
Net Position (Deficit) End of Year
Investment Earnings
Miscellaneous
Total General Revenues
Grants and Entitlements not Restricted to Specific Programs
Program Revenues
General Revenues
Property Taxes Levied for:
General Purposes
Debt Service
Capital Outlay
HEATH CITY SCHOOL DISTRICT
DRAFT
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Balance Sheet
Governmental Funds
June 30, 2021
General
Bond
Retirement
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and Cash Equivalents 8,903,212$ 1,879,001$ 817,368$ 11,599,581$
Investments 4,684,974 0 0 4,684,974
Receivables:
Taxes 10,670,115 1,477,516 1,372,541 13,520,172
Accounts 2,259 0 10,347 12,606
Intergovernmental 5,281 0 283,044 288,325
Interest 10,307 0 3,044 13,351
Interfund Loan Receivable 197,000 0 0 197,000
Inventory 0 0 13,391 13,391
Prepaid Items 230,870 0 55,466 286,336
Total Assets 24,704,018$ 3,356,517$ 2,555,201$ 30,615,736$
Liabilities:
Accounts Payable 93,019$ 0$ 144,368$ 237,387$
Accrued Wages and Benefits 1,472,228 0 186,693 1,658,921
Intergovernmental Payable 277,700 0 22,593 300,293
Interfund Loans Payable 0 0 197,000 197,000
Early Retirement Incentive Payable 29,947 0 0 29,947
Total Liabilities 1,872,894 0 550,654 2,423,548
Deferred Inflows of Resources:
Property Taxes 10,046,574 1,386,146 1,292,617 12,725,337
Unavailable Revenue 96,638 13,640 248,651 358,929
Total Deferred Inflows of Resources 10,143,212 1,399,786 1,541,268 13,084,266
Fund Balances:
Nonspendable 230,870 0 68,857 299,727
Restricted 0 1,956,731 704,885 2,661,616
Committed 248,247 0 0 248,247
Assigned 211,104 0 0 211,104
Unassigned (Deficit) 11,997,691 0 (310,463) 11,687,228
Total Fund Balances 12,687,912 1,956,731 463,279 15,107,922
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 24,704,018$ 3,356,517$ 2,555,201$ 30,615,736$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities
June 30, 2021
Total Governmental Fund Balances 15,107,922$
Amounts reported for governmental activities in the
statement of net position are different because
Capital Assets used in governmental activities are not
resources and therefore are not reported in the funds. 11,647,302
Other long-term assets are not available to pay for current-
period expenditures and therefore are deferred in the funds. 358,929
The net pension liability is not due and payable in the current period;
therefore, the liability and related deferred inflows/outflows are not
reported in governmental funds:
Deferred Outflows - Pension 4,280,393
Deferred Inflows - Pension (120,356)
Net Pension Liability (20,716,468) (16,556,431)
The net OPEB liability/asset is not due and payable nor available in
the current period; therefore, the liability/asset and related
deferred inflows/outflows are not reported in governmental funds:
Deferred Outflows - OPEB 665,198
Deferred Inflows - OPEB (2,183,456)
Net OPEB Asset 1,179,055
Net OPEB Liability (1,524,887) (1,864,090)
Long-term liabilities, including bonds and notes payable, are not
due and payable in the current period and therefore are not
reported in the funds.
General Obligation Bonds Payable (7,285,000)
Deferred Gain on Refunding (to be amortized over life of debt) (172,550)
Issuance Premium (to be amortized over life of debt) (268,910)
Compensated Absences Payable (1,487,263)
Accrued Interest Payable (22,040)
(9,235,763)
Net Position (Deficit) of Governmental Activities (542,131)$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2021
General
Bond
Retirement
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Local Sources:
Taxes 10,293,552$ 1,428,262$ 885,661$ 12,607,475$
Tuition 2,130,956 0 0 2,130,956
Food Services 0 0 169,945 169,945
Investment Earnings (5,519) 0 21,564 16,045
Extracurricular Activities 0 0 130,079 130,079
Class Materials and Fees 76,136 0 0 76,136
Intergovernmental - State 7,478,464 240,982 397,765 8,117,211
Intergovernmental - Federal 0 0 2,059,005 2,059,005
All Other Revenue 383,554 0 42,684 426,238
Total Revenues 20,357,143 1,669,244 3,706,703 25,733,090
Expenditures:
Current:
Instruction 11,683,630 0 1,226,334 12,909,964
Supporting Services:
Pupils 662,274 0 553,388 1,215,662
Instructional Staff 839,231 0 57,715 896,946
Board of Education 156,391 0 0 156,391
Administration 1,714,132 0 46,597 1,760,729
Fiscal Services 635,824 22,099 12,979 670,902
Business 16,334 0 0 16,334
Operation and Maintenance of Plant 1,545,663 0 0 1,545,663
Pupil Transportation 640,445 0 127,805 768,250
Central 365,706 0 41,764 407,470
Operation of Non-Instructional Services:
Food Service Operations 20,671 0 928,547 949,218
Extracurricular Activities 481,140 0 225,872 707,012
Capital Outlay 1,898 0 767,646 769,544
Debt Service:
Principal Retirement 58,472 1,110,000 0 1,168,472
Interest and Fiscal Charges 1,739 265,241 0 266,980
Total Expenditures 18,823,550 1,397,340 3,988,647 24,209,537
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,533,593 271,904 (281,944) 1,523,553
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
General
Bond
Retirement
Other
Governmental
Funds
Total
Governmental
Funds
Other Financing Sources (Uses):
Transfers In 0 0 80,000 80,000
Transfers Out (80,000) 0 0 (80,000)
Total Other Financing Sources (Uses) (80,000) 0 80,000 0
Net Change in Fund Balances 1,453,593 271,904 (201,944) 1,523,553
Fund Balances at Beginning of Year, Restated 11,234,319 1,684,827 672,910 13,592,056
Decrease in Inventory 0 0 (7,687) (7,687)
Fund Balances End of Year 12,687,912$ 1,956,731$ 463,279$ 15,107,922$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances Of Governmental Funds
To the Statement Of Activities
For the Fiscal Year Ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds 1,523,553$
Amounts reported for governmental activities in the statement of
activities are different because
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, the cost of those assets is allocated over
their estimated useful lives as depreciation expense. This is the amount
by which depreciation exceeded capital outlays in the current period. (119,936)
The net effect of various miscellaneous transactions involving capital
assets (i.e., disposals) is to increase net position. (19,041)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 47,844
Contractually required contributions are reported as expenditures in
governmental funds; however, the statement of net position reports
these amounts as deferred outflows. 1,592,305
Except for amounts reported as deferred inflows/outflows, changes in the
net pension liability are reported as pension expense in the statement of activities. (2,853,489)
Except for amounts reported as deferred inflows/outflows, changes in the
net OPEB liability/asset are reported as OPEB income/(expense) in the statement of activities.
34,901
The issuance of long-term debt (e.g. notes, leases) provides current
financial resources to governmental funds, while the repayment of the principal
of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. This amount is
the net effect of these differences in the treatment of long-term debt and
related items. 1,168,472
In the statement of activities, interest is accrued on outstanding bonds,
whereas in governmental funds, interest expenditure is reported
when due. 127
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Some expenses reported in the statement of activities do not require
the use of current financial resources and therefore are not reported
as expenditures in the governmental funds.
Compensated Absences (87,985)
Interest Accretion (52,915)
Amortization of Deferred Gain on Refunding 28,757
Amortization of Premium on Bond Issuance 44,818
Change in Inventory (7,687) (75,012)
Change in Net Position of Governmental Activities 1,299,724$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Statement of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
General Fund
For the Fiscal Year Ended June 30, 2021
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Local Sources:
Taxes
9,584,018$ 10,389,152$ 10,389,152$ 0$
Tuition
1,837,900 2,130,956 2,130,956 0
Investment Earnings
60,000 62,229 65,513 3,284
Class Material and Fees
3,000 5,000 3,833 (1,167)
Intergovernmental - State
7,057,806 7,417,891 7,477,277 59,386
All Other Revenues
94,000 336,122 336,991 869
Total Revenues 18,636,724 20,341,350 20,403,722 62,372
Expenditures:
Current:
Instruction 11,454,528 11,600,533 11,577,670 22,863
Support Services:
Pupils 699,509 656,643 651,417 5,226
Instructional Staff 719,038 827,106 820,479 6,627
Board of Education 162,900 180,092 176,812 3,280
Administration 1,556,276 1,700,790 1,689,096 11,694
Fiscal Services 778,870 637,243 635,823 1,420
Business 17,400 16,400 16,334 66
Operation and Maintenance of Plant 1,481,250 1,558,842 1,542,713 16,129
Pupil Transportation 922,150 628,527 625,769 2,758
Central 339,023 405,505 401,197 4,308
Non-Instructional Services:
Food Services 1,100 1,400 1,057 343
Extracurricular Activities 532,949 514,529 500,194 14,335
Capital Outlay 85,570 34,185 34,185 0
Debt Service:
Principal Retirement 58,472 58,472 58,472 0
Interest and Fiscal Charges 1,739 1,739 1,739 0
Total Expenditures 18,810,774 18,822,006 18,732,957 89,049
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(174,050) 1,519,344 1,670,765 151,421
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Other Financing Sources (Uses):
Sale of Capital Assets 1,000 0 0 0
Transfers Out (500,000) (123,035) (93,989) 29,046
Advances In 50,000 65,000 50,000 (15,000)
Advances Out (50,000) (200,000) (197,000) 3,000
Total Other Financing Sources (Uses) (499,000) (258,035) (240,989) 17,046
Net Change in Fund Balance
(673,050) 1,261,309 1,429,776 168,467
Fund Balance at Beginning of Year 11,602,076 11,602,076 11,602,076 0
Prior Year Encumbrances 165,010 165,010 165,010 0
Fund Balance at End of Year 11,094,036$ 13,028,395$ 13,196,862$ 168,467$
See accompanying notes to the basic financial statements
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
Heath City School District, Ohio (the District) is a body politic and corporate established for the
purpose of exercising the rights and privileges conveyed to it by the constitution and laws of the
State of Ohio.
The District is governed by a locally elected five member Board of Education (the Board) which
provides educational services. The Board controls the District’s instructional support facilities
staffed by approximately 68 noncertified and approximately 125 certified teaching personnel and
administrative employees providing education to 1,715 students.
The accompanying basic financial statements comply with the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 14, “The Financial Reporting Entity,” as
amended by GASB Statement No. 39, “Determining Whether Certain Organizations are
Component Units” and GASB Statement No. 61, “The Financial Reporting Entity: Omnibus” in
that the statements include all organizations, activities, functions and component units for which
the District (the reporting entity) is financially accountable. Financial accountability is defined as
the appointment of a voting majority of a legally separate organization and either the District’s
ability to impose its will over the organization's governing body or the possibility that the
organization will provide a financial benefit to, or impose a financial burden on, the District.
There were no potential component units that met the criteria to be included in the District’s
reporting entity. The District participates in two jointly governed organizations. These
organizations are the Licking Area Computer Association (LACA), which provides computer
services to school districts and the State Support Team (SST11) Region 11. The Licking County
Career and Technical Education Center acts as fiscal agent for LACA and the Educational
Service Center of Central Ohio is the fiscal agent for SST11. Based on the foregoing, the
reporting entity of the District includes the following services: instructional (regular, special
education, vocational), student guidance, extracurricular activities, food service, pupil
transportation and care and upkeep of grounds and buildings.
The accounting policies and financial reporting practices of the District conform to accounting
principles generally accepted in the United States of America as applicable to governmental units.
The following is a summary of its significant accounting policies.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Basis of Presentation - Fund Accounting
The accounting system is organized and operated on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, deferred outflows of resources,
liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses.
The following fund types are used by the District:
Governmental Funds - These are funds through which most governmental functions typically are
financed. The acquisition, use and balances of the District’s expendable financial resources and
the related current liabilities are accounted for through governmental funds. The measurement
focus is upon determination of “financial flow” (sources, uses and balances of financial
resources). The following are the District’s major governmental funds:
General Fund - This fund is the general operating fund of the District and is used to account for
all financial resources except those accounted for in another fund. The general fund balance is
available to the District for any purpose provided it is expended or transferred according to the
general laws of Ohio.
Bond Retirement Fund - This fund is used for the accumulation of resources for, and the payment
of, governmental long-term debt principal and interest.
The other governmental funds of the District account for grants and other resources whose use is
restricted to a particular purpose.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Presentation and Measurement Focus – Financial Statements
Government-wide Financial Statements – The statement of net position and the statement of
activities display information about the District as a whole. These statements include the
financial activities of the primary government.
The government-wide statements are prepared using the economic resources measurement focus
and differs from the manner in which governmental fund financial statements are prepared.
Governmental fund financial statements therefore include a reconciliation with brief explanations
to better identify the relationship between the government-wide statements and the statements for
governmental funds.
All assets, deferred outflows of resources, liabilities and deferred inflows of resources associated
with the operation of the District are included on the statement of net position.
The government-wide statement of activities presents a comparison between direct expenses and
program revenues for each function or program of the District’s governmental activities. Direct
expenses are those that are specifically associated with a service, program or department and
therefore clearly identifiable to a particular function. Program revenues include charges paid by
the recipient of the goods or services offered by the program and grants and contributions that are
restricted to meeting the operational or capital requirements of a particular program. Revenues
which are not classified as program revenues are presented as general revenues of the District,
with certain limited exceptions. The comparison of direct expenses with program revenues
identifies the extent to which each business segment or governmental function is self-financing or
draws from the general revenues of the District.
Fund Financial Statements – Fund financial statements report detailed information about the
District. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is presented in a separate column. Nonmajor funds are
aggregated and presented in a single column.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental fund types are accounted for using a flow of current
financial resources measurement focus. The financial statements for governmental funds are a
balance sheet, which generally includes only current assets, current deferred outflows, and current
liabilities, and current deferred inflows, and a statement of revenues, expenditures and changes in
fund balances, which reports on the sources (i.e., revenues and other financing sources) and uses
(i.e., expenditures and other financing uses) of current financial resources.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Basis of Accounting
Basis of accounting represents the methodology utilized in the recognition of revenues and
expenditures or expenses reported in the financial statements. The accounting and reporting
treatment applied to a fund is determined by its measurement focus.
The modified accrual basis of accounting is followed by the governmental funds. Under the
modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both
measurable and available. The term “available” means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period, which for the District is
considered to be 60 days after fiscal year end. Grants and entitlements must also meet eligibility,
timing and any contingency requirements. Expenditures are recognized in the accounting period
in which the fund liability is incurred, if measurable, except for unmatured interest and principal
on general long-term debt which is recognized when due.
Under the modified accrual basis, revenue considered susceptible to accrual at year end includes
property taxes, tuition, grants and entitlements, student fees, and interest on investments.
Delinquent property taxes measurable and available (received within 60 days) and amounts
available as an advance on future tax settlements are recognized as revenue at year end.
The accrual basis of accounting is utilized for reporting purposes by the government-wide
financial statements. Revenues are recognized when they are earned and expenses are recognized
when incurred.
Revenues – Exchange and Non-exchange Transactions – Revenue resulting from exchange
transactions, in which each party gives and receives essentially equal value, is recorded on the
accrual basis when the exchange takes place.
Nonexchange transactions, in which the District receives value without directly giving equal
value in return, include property taxes, grants, entitlements and donations. On an accrual basis,
revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Revenue from grants, entitlements and donations is recognized in the fiscal year in which all
eligibility requirements have been satisfied.
Eligibility requirements include timing requirements, which specify the year when the resources
are required to be used or the fiscal year when use is first permitted, matching requirements, in
which the District must provide local resources to be used for a specified purpose, and
expenditure requirements, in which the resources are provided to the District on a reimbursement
basis. On a modified accrual basis, revenue from nonexchange transactions must also be
available before it can be recognized.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Budgetary Process
The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the
preparation of budgetary documents within an established timetable. The major documents
prepared are the certificate of estimated resources and the appropriation resolution, all of which
are prepared on the budgetary basis of accounting. The certificate of estimated resources and the
appropriation resolution are subject to amendment throughout the year.
All funds other than custodial funds are legally required to be budgeted and appropriated;
however, only the General Fund is required to be reported. The primary level of budgetary
control is at the fund level. Budgetary modifications may only be made by resolution of the
Board of Education.
1. Estimated Resources
Prior to March 15, the Board accepts by formal resolution, the tax rates as determined by the
County Budget Commission and receives the Commission’s Certificate of Estimated Resources
which states the projected revenue of each fund. Prior to June 30, the District must revise its
budget so that the total contemplated expenditures from any fund during the ensuing fiscal year
will not exceed the amount available as stated in the certificate of estimated resources. The
revised budget then serves as the basis for the annual appropriations measure. On or about July 1,
the certificate of estimated resources is amended to include any unencumbered fund balances
from the preceding year. The certificate may be further amended during the year if a new source
of revenue is identified or actual receipts exceed current estimates. The amounts reported on the
budgetary statement reflect the amounts in the final amended official certificate of estimated
resources issued during fiscal year 2021.
2. Appropriations
A temporary appropriation measure to control expenditures may be passed on or about July 1 of
each year for the period July 1 through September 30. An annual appropriation resolution must
be passed by October 1 of each year for the period July 1 through June 30. The appropriation
resolution establishes spending controls at the fund level. The appropriation resolution may be
amended during the year as additional information becomes available, provided that total fund
appropriations do not exceed the current estimated resources as certified. The allocation of
appropriations among departments and objects within a fund may be modified during the year.
During the year, several supplemental appropriations were necessary to budget the use of
contingency funds. Administrative control is maintained through the establishment of more
detailed line-item budgets. The treasurer may allocate appropriations among departments within
a fund. The budgetary figures which appear in the “Statement of Revenues, Expenditures, and
Changes in Fund Balances-Budget and Actual” are provided on the budgetary basis to provide a
comparison of actual results to the final budget, including all amendments and modifications.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Budgetary Process (Continued)
3. Lapsing of Appropriations
At the close of each fiscal year, the unencumbered balance of each appropriation reverts to the
respective fund from which it was appropriated and becomes subject to future appropriations.
The encumbered appropriation balance is carried forward to the subsequent fiscal year and need
not be reappropriated.
4. Budgetary Basis of Accounting
The District’s budgetary process accounts for certain transactions on a basis other than
accounting principles generally accepted in the United States of America (GAAP). The major
differences between the budgetary basis and the GAAP basis lie in the manner in which revenues
and expenditures are recorded. Under the budgetary basis, revenues and expenditures are
recognized on a cash basis. Utilizing the cash basis, revenues are recorded when received in cash
and expenditures when paid. Under the GAAP basis, revenues and expenditures are recorded on
the modified accrual basis of accounting.
The following table summarizes the adjustments necessary to reconcile the GAAP basis
statements to the budgetary basis statements for the General Fund:
Net Change in Fund Balance
General Fund
GAAP Basis (as reported) $1,453,593
Increase (Decrease):
Accrued Revenues
at June 30, 2021,
received during FY 2022 (741,750)
Accrued Revenues
at June 30, 2020,
received during FY 2021 704,947
Accrued Expenditures
at June 30, 2021,
paid during FY 2022 1,872,894
Accrued Expenditures
at June 30, 2020,
paid during FY 2021 (1,933,703)
FY 2020 Prepaids for FY 2021 232,672
FY 2021 Prepaids for FY 2022 (230,870)
Perspective Difference-
Budgeted Special Revenue Funds
reclassified as General Fund 14,139
Adjustment to Fair Value 65,284
Encumbrances Outstanding (7,430)
Budget Basis $1,429,776
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Cash and Cash Equivalents
During fiscal year 2021, cash and cash equivalents included amounts in demand deposits,
short-term certificates of deposit with original maturities of three months or less, and the State
Treasury Asset Reserve (STAR Ohio). STAR Ohio is a very liquid investment and is reported as
a cash equivalent in the basic financial statements.
The District pools its cash for investment and resource management purposes. Each fund’s
equity in pooled cash and cash equivalents and investments represents the balance on hand as if
each fund maintained its own cash and investment account. See Note 5, “Cash, Cash Equivalents
and Investments.”
G. Investments
Investment procedures and interest allocations are restricted by provisions of the Ohio
Constitution and the Ohio Revised Code. In accordance with GASB Statement No. 31,
“Accounting and Financial Reporting for Certain Investments and for External Investment
Pools”, the District reports its investments in federal securities, negotiable certificates of deposit,
and commercial paper at fair value and its nonparticipating investment contracts (certificates of
deposit) at cost which approximates fair value. All investment income, including changes in the
fair value of investments, is recognized as revenue in the operating statements. Fair value is
determined by quoted market prices. See Note 5, “Cash, Cash Equivalents and Investments.”
During 2021, the District invested in STAR Ohio. STAR Ohio (the State Treasury Asset Reserve
of Ohio), is an investment pool managed by the State Treasurer’s Office which allows
governments within the State to pool their funds for investment purposes. STAR Ohio is not
registered with the SEC as an investment company, but has adopted Governmental Accounting
Standards Board (GASB), Statement No. 79, “Certain External Investment Pools and Pool
Participants.” The District measures its investment in STAR Ohio at the net asset value (NAV)
per share provided by STAR Ohio. The NAV per share is calculated on an amortized cost basis
that provides an NAV per share that approximates fair value. For 2021, there were no limitations
or restrictions on any participant withdrawals due to redemption notice periods, liquidity fees, or
redemption gates. However, notice must be given 24 hours in advance of all deposits and
withdrawals exceeding $100 million. STAR Ohio reserves the right to limit the transaction to
$250 million, requiring the excess amount to be transacted the following business day(s), but only
to the $250 million limit. All accounts of the participant will be combined for these purposes.
H. Inventory
On government-wide financial statements and the governmental fund financial statements,
purchased inventories held for resale are presented at the lower of cost or market and donated
commodities are presented at their entitlement value. Inventories are recorded on a first-in, first-
out basis and are expensed when used. Inventories are accounted for using the purchase method
on the governmental fund financial statements and using the consumption method on the
government-wide financial statements.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Inventory (Continued)
On the governmental fund financial statements, inventory is equally offset by a nonspendable
fund balance in the governmental funds which indicates that it does not constitute available
spendable resources even though it is a component of net current assets.
I. Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, 2021, are
recorded as prepaid items using the consumption method. A current asset for the prepaid amount
is recorded at the time of the purchase and an expenditure/expense is reported in the year in
which services are consumed.
J. Capital Assets and Depreciation
Capital assets are defined by the District as assets with an initial, individual cost of more than
$5,000.
1. Property, Plant and Equipment - Governmental Activities
Governmental activities capital assets are those assets specifically related to governmental
activities. These generally are acquired or constructed for governmental activities and are
recorded as expenditures in the governmental funds and are capitalized at cost (or estimated
historical cost for assets not purchased in recent years). These assets are reported in the
Governmental Activities column of the Government-wide Statement of Net Position, but they are
not reported in the Fund Financial Statements.
Donated capital assets are recorded at their acquisition value as of the date received. The District
does not possess any infrastructure. Estimated historical costs for governmental activities capital
asset values were initially determined by identifying historical costs where such information was
available. In cases where information supporting original cost was not obtainable, estimated
historical costs were developed. For certain capital assets, the estimates were arrived at by
indexing estimated current costs back to the estimated year of acquisition.
2. Depreciation
All capital assets are depreciated excluding land and construction in progress. Depreciation has
been provided using the straight-line method over the following estimated useful lives:
Description
Estimated Lives (in years)
Land Improvements
20
Buildings and Improvements
20-50
Equipment, Furniture and Fixtures
5-30
Vehicles
8
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
- 38 -
12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Long-Term Obligations
Long-term liabilities are being repaid from the following funds:
Obligation
Fund
General Obligation Bonds Payable
Bond Retirement Fund
Compensated Absences
General Fund, Food Service Fund
L. Compensated Absences
In accordance with GASB Statement No. 16, “Accounting for Compensated Absences,” vacation
benefits are accrued as a liability when an employee’s right to receive compensation is
attributable to services already rendered, and it is probable that the employee will be compensated
through paid time off or some other means, such as cash payments at termination or retirement.
Administrators and classified staff who work twelve month contracts are granted vacation leave
based on length of service and position. Sick leave benefits are accrued as a liability using the
vesting method. Employees may earn 15 days of sick leave per year up to a maximum of 330
days. Upon retirement, employees will receive one-fourth of the accumulated sick leave up to a
maximum of 56.75 days for certified employees or 61 days for noncertified employees, plus one
day for each year of service over ten years. Compensated absences accumulated by governmental
fund type employees are retired as an expense when earned in the government-wide financial
statements. For governmental fund financial statements, compensated absences are recognized as
a liability and expenditure to the extent payments come due each period upon the occurrence of
employee resignations and retirements. These amounts are recorded in the fund from which the
employees who have accumulated leave are paid. The noncurrent portion of the liability is not
reported in the fund financial statements.
M. Net Position
Net position represents the difference between assets and deferred outflows of resources, and
liabilities and deferred inflows of resources. Net investment in capital assets, consists of capital
assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings
used for the acquisition, construction or improvement of those assets. Net position is reported as
restricted when there are limitations imposed on their use either through the enabling legislation
adopted by the District or through external restrictions imposed by creditors, grantors or laws or
regulations of other governments.
The District policy is to first apply restricted resources when an expense is incurred for purposes
for which both restricted and unrestricted resources are available. The District did not have net
position restricted by enabling legislation at June 30, 2021.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Fund Balance
Fund balance is divided into five classifications based primarily on the extent to which the
District is bound to observe constraints imposed upon the use of the resources in the
governmental funds. The classifications are as follows:
Nonspendable - The nonspendable fund balance category includes amounts that cannot be spent
because they are not in spendable form, or legally or contractually required to be maintained
intact. The “not in spendable form” criterion includes items that are not expected to be converted
to cash. It also includes the long-term amount of loans receivable, as well as property acquired for
resale, unless the use of the proceeds from the collection of those receivables or from the sale of
those properties is restricted, committed, or assigned.
Restricted – The fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions.
Committed - The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by a formal action (resolution) of the District Board of
Education. Those committed amounts cannot be used for any other purpose unless the District
Board of Education removes or changes the specified use by taking the same type of action
(resolution) it employed to previously commit those amounts. Committed fund balance also
incorporates contractual obligations to the extent that existing resources in the fund have been
specifically committed for use in satisfying those contractual requirements.
Assigned - Amounts in the assigned fund balance classification are intended to be used by the
District for specific purposes but do not meet the criteria to be classified as restricted or
committed. The Board of Education may assign fund balance as it does when appropriating fund
balance to cover a gap between estimated revenues and appropriations in the subsequent year’s
appropriated budget. Through the District’s purchasing policy the Board of Education has given
the Treasurer the authority to constrain monies for intended purposes in the general fund, which
are reported as assigned fund balance.
Unassigned - Unassigned fund balance is the residual classification for the general fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed, or
assigned.
The District applies restricted resources first when expenditures are incurred for purposes for
which either restricted or unrestricted (committed, assigned, and unassigned) amounts are
available. Similarly, within unrestricted fund balance, committed amounts are reduced first
followed by assigned, and then unassigned amounts when expenditures are incurred for purposes
for which amounts in any of the unrestricted fund balance classifications could be used.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. Pensions/Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension/OPEB asset/liability, deferred outflows of resources
and deferred inflows of resources related to pensions/OPEB, and pension/OPEB expense,
information about the fiduciary net position of the pension/OPEB plans and additions
to/deductions from their fiduciary net position have been determined on the same basis as they
are reported by the pension/OPEB plans. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit
terms. The pension/OPEB plans report investments at fair value.
P. Interfund Activity
On the fund financial statements, receivables and payables resulting from short-term interfund
loans are classified as “Interfund loan receivables/payables”. These amounts are eliminated from
the government-wide financial statements. Exchange transactions between funds are reported as
revenues in the seller funds and as expenditures in the purchaser funds. Interfund services
provided and used are not eliminated in the process of consolidation. Flows of cash or goods
from one fund to another without a requirement for repayment are reported as interfund transfers.
Interfund transfers are reported as other financing sources/uses in governmental funds.
Repayments from funds responsible for particular expenditures/expenses to the funds that initially
paid for them are not presented on the basic financial statements. The effect of the transfers has
been eliminated from the government-wide financial statements.
Q. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
R. Extraordinary and Special Items
Extraordinary items are transactions or events that are both unusual in nature and infrequent in
occurrence. Extraordinary item transactions did not occur during fiscal year 2021. Special items
are transactions or events that are within the control of the Board of Education and that are either
unusual in nature or infrequent in occurrence. During fiscal year 2021, the District had no
extraordinary or special items.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
S. Bond Premiums, Bond Discounts, Gains/Losses on Refunding and Issuance Costs
In the government-wide financial statements, bond premiums and discounts are deferred and
amortized over the term of the bonds using the straight-line method, which approximates the
effective interest method. Bonds payable are reported net of the applicable bond premium and
discount. Bond issuance costs are expensed. Bond premiums are deferred and amortized over
the term of the bonds. Any gain or loss on refunding is allocated over the life of the old debt or
the new debt whichever is shorter.
On the governmental fund financial statements, governmental fund types recognize issuance
costs, bond premiums, and bond discounts in the current period. The face amount of the debt
issue is reported as other financing sources. Premiums and discounts received on debt issuances
are reported as other financing sources and uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
T. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. For the District,
deferred outflows of resources are reported on the government-wide statement of net position for
pensions and for OPEB. The deferred outflows of resources related to pensions and OPEB are
explained in Notes 10 and 11, respectively.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. Deferred inflows of
resources are reported on the government wide statement of net position for deferred gains on
refunding and deferred inflows of resources related to pensions and OPEB which are explained in
Notes 10 and 11, respectively. The deferred gain on refunding results from the difference in the
carrying value of the refunded debt and its reacquisition price. This amount is deferred and
amortized over the shorter of the life of the refunded or refunding debt. In addition, the
government-wide statement of net position and the governmental funds balance sheet report
property taxes that are intended to finance future fiscal periods are reported as deferred inflows.
The governmental funds balance sheet also reports deferred inflows which arise only under a
modified accrual basis of accounting. Accordingly, the item, unavailable amounts, is reported
only in the governmental funds balance sheet. The governmental funds report unavailable
amounts for property taxes, investment earnings, accounts, and grants. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become
available.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
U. Fair Value
The District categorizes its fair value measurements within the fair value hierarchy established by
accounting principles generally accepted in the United States of America. The hierarchy is based
on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
NOTE 2 – CHANGE IN ACCOUNTING PRINCIPLES/RESTATEMENT OF FUND BALANCE
/NET POSITION
For 2021, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 84,
“Fiduciary Activities,” and Statement No. 90, “Majority Equity Interests—an amendment of GASB
Statements No. 14 and No. 61.”
GASB Statement No. 84 establishes criteria for identifying fiduciary activities of all state and local
governments.
The implementation of GASB 84 had the following effect on net position and fund balance as reported
June 30, 2020:
Other Total
Governmental General Governmental Governmental
Activities Fund Funds Funds
Net Position/Fund Balance June 30, 2020 ($1,893,818) $11,233,358 $621,908 $13,540,093
Adjustments:
GASB 84 Fund Reclassification 51,963 961 51,002 51,963
Restated Net Position/
Fund Balance June 30, 2020 ($1,841,855) $11,234,319 $672,910 $13,592,056
Related to the implementation of GASB Statement 84, the, the District will no longer be reporting agency
funds.
GASB Statement No. 90 establishes criteria for reporting a government’s majority equity interest in a
legally separate organization. The implementation of this statement did not result in a restatement of the
District’s financial statements.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 3 – FUND BALANCES
Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based
primarily on the extent to which the District is bound to observe constraints imposed upon the use of
resources in the Governmental Funds. The constraints placed on fund balance for the major governmental
funds and all other governmental funds are presented below:
Other Total
General Governmental Governmental
Fund Debt Service Funds Funds
Nonspendable:
Prepaid Items $230,870 $0 $55,466 $286,336
Supplies Inventory 0 0 13,391 13,391
Total Nonspendable 230,870 0 68,857 299,727
Restricted:
Food Service Operations 0 0 39,613 39,613
Extracurricular Activities 0 0 106,267 106,267
Technology Improvements 0 0 437 437
Student Wellness and Success 0 0 154,164 154,164
Limited English Proficiency 0 0 916 916
Debt Service Payments 0 1,956,731 0 1,956,731
Capital Improvements 0 0 403,488 403,488
Total Restricted 0 1,956,731 704,885 2,661,616
Committed:
Employee Health Insurance 248,247 0 0 248,247
Total Committed 248,247 0 0 248,247
Assigned:
Assigned to Other Purposes 211,104 0 0 211,104
Total Assigned 211,104 0 0 211,104
Unassigned (Deficit) 11,997,691 0 (310,463) 11,687,228
Total Fund Balances $12,687,912 $1,956,731 $463,279 $15,107,922
Fund Balances
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 4 – EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL
FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances – total governmental funds and changes in net
position of governmental activities as reported in the government – wide statement of activities. The
following is a detailed listing of those reconciling items that are net adjustments or a combination of
several transactions:
Amount by which depreciation exceeded capital outlays in the current period:
Capital Outlay $899,929
Depreciation Expense (1,019,865)
($119,936)
Governmental revenues not reported in the funds:
Decrease in Delinquent Tax Revenue ($45,606)
Decrease in Accounts Receivable ($10,976)
Increase in Intergovernmental Grants Receivable 105,677
Decrease in Interest Earnings (1,251)
$47,844
Amount of current year contractually required contributions deferred:
Pension Contributions $1,547,281
OPEB Contributions 45,024
$1,592,305
Amount of bond and lease principal payments:
Bond Principal Payment $1,110,000
Capital Lease Payment 58,472
$1,168,472
This space intentionally left blank.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash resources of several individual funds are combined to form a pool of cash, cash equivalents and
investments. The District has adopted an Investment Policy that follows Ohio Revised Code Chapter 135
and applies the prudent person standard. The prudent person standard requires the Treasurer to exercise
the care, skill and experience that a prudent person would use to manage his/her personal financial affairs
and to seek investments that will preserve principal while maximizing income.
Statutes require the classification of funds held by the District into three categories. Category 1 consists
of “active” funds - those funds required to be kept in a “cash” or “near cash” status for immediate use by
the District. Such funds must be maintained either as cash in the District Treasury, in depository accounts
payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in
money market deposit accounts.
Category 2 consists of “inactive” funds - those funds not required for use within the current five year
period of designation of depositories. Inactive funds may be deposited or invested only as certificates of
deposit maturing not later than the end of the current period of designation of depositories, or by savings
or deposit accounts including, but limited to, passbook accounts.
Category 3 consists of “interim” funds - those funds which are not needed for immediate use but, which
will be needed before the end of the current period of designation of depositories. Interim funds may be
invested or deposited in the following securities:
United States treasury notes, bills, bonds, or any other obligation or security issued by the
United States treasury or any other obligation guaranteed as to principal or interest by the
United States;
Bonds, notes, debentures, or any other obligations or securities issued by any federal
government agency or instrumentality, including but not limited to, the federal national
mortgage association, federal home loan bank, federal farm credit bank, federal home
loan mortgage corporation, government national mortgage association, and student loan
marketing association. All federal agency securities shall be direct issuances of federal
government agencies or instrumentalities;
Written repurchase agreements in the securities listed above provided that the market
value of the securities subject to the repurchase agreement must exceed the principal
value of the agreement by at least two percent and be marked to market daily, and that the
term of the agreement must not exceed thirty days;
Interim deposits in eligible institutions applying for interim funds;
Bonds and other obligations of the State of Ohio, and with certain limitations including a
requirement for maturity within ten years from the date of settlement, bonds and other
obligations of political subdivisions of the State of Ohio, if training requirements have
been met;
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
- 46 -
12/21/2021
NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
No-load money market mutual funds consisting exclusively of obligations described in
the first two bullets of this section and repurchase agreements secured by such
obligations, provided that investments in securities described in this division are made
only through eligible institutions;
Time certificates of deposit accounts including, but not limited to, passbook accounts;
The State Treasury Asset Reserve of Ohio (STAR Ohio), and;
Certain bankers’ acceptances and commercial paper notes for a period not to exceed one
hundred and eighty days and two hundred seventy days, respectively, in an amount not to
exceed forty percent of the interim moneys available for investment at any one time.
Investments in stripped principal or interest obligations, reverse repurchase agreements, and
derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of
leverage, and short selling are also prohibited. Except as noted above, an investment must mature
within five years from the date of purchase, unless matched to a specific obligation or debt of the
District, and must be purchased with the expectation that it will be held to maturity.
A. Deposits
Custodial credit risk is the risk that in the event of bank failure, the government’s deposits may
not be returned. Protection of District cash and deposits is provided by the Federal Deposit
Insurance Corporation as well as qualified securities pledged by the institution holding the assets.
The District has no policy on custodial credit risk and is governed by Ohio Revised Code. Ohio
Law requires that deposits be placed in eligible banks or savings and loan associations located in
Ohio. Any public depository in which the District places deposits must pledge as collateral
eligible securities of aggregate market value equal to the excess of deposits not insured by the
Federal Deposit Insurance Corporation (FDIC). Ohio law requires that deposits be either insured
or be protected by eligible securities pledged to the District and deposited with a qualified trustee
by the financial institution as security for repayment whose market value at all times shall be at
least 105 percent of the deposits being secured, or participation in the Ohio Pooled Collateral
System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and
pledged to the Treasurer of State to secure the repayment of all public monies deposited in the
financial institution. OPCS requires the total market value of the securities pledged to be 102
percent of the deposits being secured or a rate set by the Treasurer of State.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
A. Deposits (Continued)
At year end the carrying amount of the District’s deposits was $10,435,513 and the bank balance
was $10,452,844. Federal depository insurance covered $10,424,342 of the bank balance and
$28,502 was uninsured. Of the remaining uninsured bank balance, the District was exposed to
custodial risk as follows:
Balance
Uninsured and collateralized with securities held in
the Ohio Pooled Collateral System $28,502
Total Balance $28,502
Following Ohio statues, the Board of Education has, by resolution, specified the funds to receive
an allocation of interest earnings. Interest revenue credited to the general fund during fiscal year
2021 amounted to $65,513. This includes $55,388 assigned from other District funds; however,
the reduction in fair value of the investments in the General Fund resulted in reporting negative
investment earnings in the General Fund.
B. Investments
The District's investments at June 30, 2021 were as follows:
Fair Value Credit Rating less than 1 1-3 years 3-5 years
STAR Ohio $1,165,168 a
AAAm
2
$1,165,168 $0 $0
FFCB Notes 160,105
Aaa
1
, AA+
2
160,105 0 0
FHLMC Notes 580,924
Aaa
1
, AA+
2
0 199,555 381,369
Commercial Paper 1,069,341
P-1
1
1,069,341 0 0
Negotiable CD 2,873,504
AAA
3
911,205 1,962,299 0
Total Investments $5,849,042 $3,305,819 $2,161,854 $381,369
Investment Maturities (in Years)
Moody’s Investor Service
Standard & Poor’s
All are fully FDIC insured and therefore have an implied AAA credit rating.
Measured on an amortized cost basis.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
- 48 -
12/21/2021
NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
B. Investments (Continued)
The District’s investments in federal agency securities (FFCB and FHLMC), Commercial Paper
and negotiable certificates of deposit are valued using a matrix pricing technique. Matrix pricing
is used to value securities based on the securities’ relationship to benchmark quoted prices. (Level
2 inputs).
Interest Rate Risk – The Ohio Revised Code generally limits security purchases to those that
mature within five years of settlement date. The District has no policy that limits investment
purchases beyond the requirements of the Ohio Revised Code.
Investment Credit Risk – The District has no investment policy that limits its investment choices
other than the limitation of State statute for “interim” funds described previously.
Concentration of Credit Risk – The District places no limit on the amount the District may invest
in one issuer. Of the District’s total investments, 20% are STAR Ohio, 3% are FFCB, 10 are
FHLMC, 18% are Commercial Paper, and 49% are Negotiable Certificates of Deposit.
Custodial Credit Risk – For an investment, custodial credit risk is the risk that in the event of the
failure of the counterparty, the District will not be able to recover the value of its investment or
collateral securities that are in the possession of an outside party. The District has no policy on
custodial credit risk and is governed by Ohio Revised Code as described under Deposits.
C. Reconciliation of Cash, Cash Equivalents and Investments
The classification of cash, cash equivalents and investments on the financial statements is based
on criteria set forth in GASB Statement No. 9. Certificates of deposit with an original maturity of
three months or less are treated as cash equivalents. The classification of cash and cash
equivalents (deposits) for purposes of this note are based on criteria set forth in GASB Statement
No. 3.
Cash and Cash
Equivalents Investments
Per Financial Statements $11,599,581 $4,684,974
Certificates of Deposit
(with maturities of more than 3 months) 1,100 (1,100)
STAR Ohio (1,165,168) 1,165,168
Per GASB Statement No. 3 $10,435,513 $5,849,042
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
- 49 -
12/21/2021
NOTE 6 - PROPERTY TAXES
Property taxes are levied and assessed on a calendar year basis while the District fiscal year runs from
July through June. First half tax collections are received by the District in the second half of the fiscal
year. Second half tax distributions occur in the first half of the following fiscal year.
Property taxes include amounts levied against all real and public utility property located in the District.
Real property tax revenue received in calendar 2021 represents collections of calendar year 2020 taxes.
Real property taxes received in calendar year 2021 were levied after April 1, 2020, on the assessed value
listed as of January 1, 2020, the lien date. Assessed values for real property taxes are established by State
law at 35 percent of appraised market value. Real property taxes are payable annually or semi-annually.
If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December
31 with the remainder payable by June 20. Under certain circumstances, State statute permits alternate
payment dates to be established.
Public utility property tax revenue received in calendar year 2021 represents collections of calendar year
2020 taxes. Public utility real and tangible personal property taxes received in calendar year 2021
became a lien December 31, 2019, were levied after April 1, 2020 and are collected with real property
taxes. Public utility real property is assessed at 35 percent of true value; public utility tangible personal
property currently is assessed at varying percentages of true value.
The District receives property taxes from Licking County. The County Auditor periodically advances to
the District its portion of the taxes collected. Second-half real property tax payments collected by the
County by June 30, 2021, are available to finance fiscal year 2021 operations. The amount available to be
advanced can vary based on the date the tax bills are sent. The assessed values upon which the fiscal year
2021 receipts were based are:
Assessed Values for Collection in:
2020 Second Half 2021 First Half
Agricultural/Residential and Other Real Estate $261,638,294 $285,512,290
Public Utility Personal 20,431,940 22,460,320
Total Assessed Value $282,070,234 $307,972,610
Tax rate per $1,000 of assessed valuation $62.00 $64.80
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 6 - PROPERTY TAXES (Continued)
Tax Abatement
The District incurs a reduction in property taxes through tax abatement agreements entered into by other
governments with property owners that reduce the District’s taxes.
As of June 30, 2021, another governmental entity provided tax abatements through the Community
Reinvestment Area (CRA) program. Under the authority of Ohio Revised Code (ORC) Section 3735.67,
the CRA program is an economic development tool administered by municipal and county governments
that provides real property tax exemptions for property owners who renovate existing or construct new
buildings. CRA’s are areas of land in which property owners can receive tax incentives for investing in
real property improvements. Under the CRA program, local governments petition to the Ohio
Development Services Agency (ODSA) for confirmation of a geographical area in which investment in
housing is desired. Once an area is confirmed by the ODSA, local governments may offer real property
tax exemptions to taxpayers that invest in that area. Property owners in the CRA can receive temporary
tax abatements for renovation of existing structures and new construction in these areas. Property owners
apply to the local legislative authority for approval to renovate or construct in the CRA. Upon approval
and certification of completion, the amount of the abatement is deducted from the individual or entity’s
property tax bill.
During fiscal year 2021, the District’s property tax revenues were reduced under agreements entered into
by another government as follows:
Government Entering District
Into Agreement Taxes Abated
City of Heath 561,246$
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
- 51 -
12/21/2021
NOTE 7 - RECEIVABLES
Receivables at June 30, 2021 consisted of accounts, taxes, intergovernmental and interest receivables. All
receivables are expected to be collected within the next year.
NOTE 8 - INTERFUND ACTIVITY
A. Interfund Receivables and Payables
Following is a summary of interfund receivables and payables for all funds at June 30, 2021:
Interfund Loan Interfund Loan
Receivables Payables
General Fund $197,000 $0
Nonmajor Governmental Funds 0 197,000
Totals $197,000 $197,000
The Interfund Loan is a short-term loan which will be paid back within the year. The primary
purpose of the interfund balance is to cover costs in specific funds where revenues were not
received by June 30, 2021.
B. Interfund Transfers
Following is a summary of transfers in and out for all funds for fiscal year 2021:
Fund Transfers In Transfers Out
General Fund $0 $80,000
Nonmajor Governmental Funds 80,000 0
Total All Funds $80,000 $80,000
Transfers from the General Fund were made to provide additional resources for a nonmajor
governmental fund. All transfers were made in compliance with Ohio Revised Code Sections
5705.14, 5705.15 and 5705.16.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 9 - CAPITAL ASSETS
Summary by category of changes in governmental activities capital assets at June 30, 2021:
Historical Cost:
Balance at Balance at
Class June 30, 2020 Additions Deletions June 30, 2021
Capital Assets not being depreciated:
Land $438,952 $0 $0 $438,952
Construction In Progress 240,381 0 (240,381) 0
Subtotal 679,333 0 (240,381) 438,952
Capital Assets being depreciated:
Land Improvements 3,102,709 436,800 (39,500) 3,500,009
Buildings and Improvements 23,085,263 538,040 (10,803) 23,612,500
Furniture, Fixtures and Equipment 1,632,810 45,570 0 1,678,380
Vehicles 1,105,670 119,900 (158,529) 1,067,041
Subtotal 28,926,452 1,140,310 (208,832) 29,857,930
Total Cost $29,605,785 $1,140,310 ($449,213) $30,296,882
Accumulated Depreciation:
Balance at Balance at
Class June 30, 2020 Additions Deletions June 30, 2021
Land Improvements ($1,869,468) ($143,902) $23,700 ($1,989,670)
Buildings and Improvements (13,833,891) (708,839) 7,562 (14,535,168)
Furniture, Fixtures and Equipment (1,299,795) (85,883) 0 (1,385,678)
Vehicles (816,352) (81,241) 158,529 (739,064)
Total Depreciation ($17,819,506) ($1,019,865) * $189,791 ($18,649,580)
Net Value: $11,786,279 $11,647,302
* Depreciation expenses were charged to governmental functions as follows:
Instruction
$485,727
Support Services:
Pupils 22,300
Instructional Staff
22,333
Administration
45,848
Fiscal Services
2,118
Operations and Maintenance of Plant
58,828
Pupil Transportation
98,259
Central
3,418
Operation of Non-Instructional Services:
Food Service
39,533
Extracurricular Activities
241,501
Total Depreciation Expense $1,019,865
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 10 - DEFINED BENEFIT PENSION PLANS
All of the District’s full-time employees participate in one of two separate retirement systems which are
cost-sharing, multiple-employer defined benefit pension plans.
A. Net Pension Liability
The net pension liability reported on the statement of net position represents a liability to
employees for pensions. Pensions are a component of exchange transactions-–between an
employer and its employees—of salaries and benefits for employee services. Pensions are
provided to an employee—on a deferred-payment basis—as part of the total compensation
package offered by an employer for employee services each financial period. The obligation to
sacrifice resources for pensions is a present obligation because it was created as a result of
employment exchanges that already have occurred.
The net pension liability represents the District’s proportionate share of each pension plan’s
collective actuarial present value of projected benefit payments attributable to past periods of
service, net of each pension plan’s fiduciary net position. The net pension liability calculation is
dependent on critical long-term variables, including estimated average life expectancies, earnings
on investments, cost of living adjustments and others. While these estimates use the best
information available, unknowable future events require adjusting this estimate annually.
Ohio Revised Code limits the District’s obligation for this liability to annually required payments.
The District cannot control benefit terms or the manner in which pensions are financed; however,
the District does receive the benefit of employees’ services in exchange for compensation
including pension.
GASB 68 assumes the liability is solely the obligation of the employer, because (1) they benefit
from employee services; and (2) State statute requires all funding to come from these employers.
All contributions to date have come solely from these employers (which also includes costs paid
in the form of withholdings from employees). State statute requires the pension plans to amortize
unfunded liabilities within 30 years. If the amortization period exceeds 30 years, each pension
plan’s board must propose corrective action to the State legislature. Any resulting legislative
change to benefits or funding could significantly affect the net pension liability. Resulting
adjustments to the net pension liability would be effective when the changes are legally
enforceable.
The proportionate share of each plan’s unfunded benefits is presented as a long-term net pension
liability on the accrual basis of accounting. Any liability for the contractually-required pension
contribution outstanding at the end of the year is included in intergovernmental payable on both
the accrual and modified accrual bases of accounting.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
B. Plan Description
School Employees Retirement System (SERS)
Plan Description –District non-teaching employees participate in SERS, a cost-sharing multiple-
employer defined benefit pension plan administered by SERS. SERS provides retirement,
disability and survivor benefits, annual cost-of-living adjustments, and death benefits to plan
members and beneficiaries. Authority to establish and amend benefits is provided by Ohio
Revised Code Chapter 3309. SERS issues a publicly available, stand-alone financial report that
includes financial statements, required supplementary information and detailed information about
SERS’ fiduciary net position. That report can be obtained by visiting the SERS website at
www.ohsers.org under Employers/Audit Resources.
Age and service requirements for retirement are as follows:
Eligible to Eligible to
Retire on or before Retire on or after
August 1, 2017 * August 1, 2017
Full Benefits Age 65 with 5 years of service credit; or Age 67 with 10 years of service credit; or
Any age with 30 years of service credit Age 57 with 30 years of service credit
Actuarially Reduced Benefits Age 60 with 5 years of service credit Age 62 with 10 years of service credit; or
Age 55 with 25 years of service credit Age 60 with 25 years of service credit
* Members with 25 years of service credit as of August 1, 2017, will be included in this plan.
Annual retirement benefits are calculated based on final average salary multiplied by a percentage
that varies based on year of service; 2.2 percent for the first thirty years of service and 2.5 percent
for years of service credit over 30. Final average salary is the average of the highest three years
of salary.
An individual whose benefit effective date is before April 1, 2018, is eligible for a cost of living
adjustment (COLA) on the first anniversary date of the benefit. Beginning April 1, 2018, new
benefit recipients must wait until the fourth anniversary of their benefit for COLA eligibility. The
COLA is added each year to the base benefit amount on the anniversary date of the benefit. A
three-year COLA suspension is in effect for all benefit recipients for the years 2018, 2019, and
2020. Upon resumption of the COLA, it will be indexed to the percentage increase in the CPI-W,
not to exceed 2.5 percent and with a floor of 0 percent. In 2020, the Board of Trustees approved a
0.5 percent cost-of-living adjustment (COLA) for eligible retirees and beneficiaries in 2021.
Funding Policy – Plan members are required to contribute 10 percent of their annual covered
salary and the School District is required to contribute 14 percent of annual covered payroll. The
contribution requirements of plan members and employers are established and may be amended
by the SERS’ Retirement Board up to statutory maximum amounts of 10 percent for plan
members and 14 percent for employers. The Retirement Board, acting with the advice of the
actuary, allocates the employer contribution rate among four of the System’s funds (Pension Trust
Fund, Death Benefit Fund, Medicare B Fund, and Health Care Fund). For the fiscal year ended
June 30, 2021, the allocation to pension, death benefits, and Medicare B was 14 percent. No
amount was allocated to the Health Care Fund.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
B. Plan Description (Continued)
The District’s contractually required contribution to SERS was $334,415 for fiscal year 2021. Of
this amount $14,330 is reported as an intergovernmental payable.
State Teachers Retirement System (STRS)
Plan Description –District licensed teachers and other faculty members participate in STRS
Ohio, a cost-sharing multiple-employer public employee retirement system administered by
STRS. STRS provides retirement and disability benefits to members and death and survivor
benefits to beneficiaries. STRS issues a stand-alone financial report that includes financial
statements, required supplementary information and detailed information about STRS’ fiduciary
net position. That report can be obtained by writing to STRS, 275 E. Broad St., Columbus, OH
43215-3771, by calling (888) 227-7877, or by visiting the STRS Web site at www.strsoh.org.
New members have a choice of three retirement plans; a Defined Benefit (DB) Plan, a Defined
Contribution (DC) Plan and a Combined Plan. Benefits are established by Ohio Revised Code
Chapter 3307. The DB plan offers an annual retirement allowance based on final average salary
multiplied by a percentage that varies based on years of service. Effective August 1, 2015, the
calculation is 2.2 percent of final average salary for the five highest years of earnings multiplied
by all years of service. In April 2017, the Retirement Board made the decision to reduce COLA
granted on or after July 1, 2017, to 0 percent to preserve the fiscal integrity of the retirement
system. Benefit recipients’ base benefit and past cost-of living increases are not affected by this
change. Members are eligible to retire at age 60 with five years of qualifying service credit, or
age 55 with 27 years of service, or 30 years of service regardless of age. Eligibility changes will
be phased in until August 1, 2026, when retirement eligibility for unreduced benefits will be five
years of service credit and age 65, or 35 years of service credit and at least age 60.
The DC Plan allows members to place all their member contributions and 9.53 percent of the 14
percent employer contributions into an investment account. Investment allocation decisions are
determined by the member. The remaining 4.47 percent of the 14 percent employer rate is
allocated to the defined benefit unfunded liability. A member is eligible to receive a retirement
benefit at age 50 and termination of employment. The member may elect to receive a lifetime
monthly annuity or a lump sum withdrawal.
The Combined Plan offers features of both the DB Plan and the DC Plan. In the Combined Plan,
12 percent of the 14 percent member rate goes to the DC Plan and the remaining 2 percent is
applied to the DB Plan. Member contributions to the DC Plan are allocated among investment
choices by the member, and contributions to the DB Plan from the employer and the member are
used to fund the defined benefit payment at a reduced level from the regular DB Plan. The
defined benefit portion of the Combined Plan payment is payable to a member on or after age 60
with five years of service. The defined contribution portion of the account may be taken as a lump
sum payment or converted to a lifetime monthly annuity at age fifty and after termination of
employment.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
B. Plan Description (Continued)
New members who choose the DC plan or Combined Plan will have another opportunity to
reselect a permanent plan during their fifth year of membership. Members may remain in the
same plan or transfer to another STRS plan. The optional annuitization of a member’s defined
contribution account or the defined contribution portion of a member’s Combined Plan account
to a lifetime benefit results in STRS bearing the risk of investment gain or loss on the account.
STRS has therefore included all three plan options as one defined benefit plan for GASB 68
reporting purposes.
A DB or Combined Plan member with five or more years of credited service who is determined
to be disabled may qualify for a disability benefit. New members must have at least ten years of
qualifying service credit that apply for disability benefits. Members in the DC Plan who become
disabled are entitled only to their account balance. Eligible survivors of members who die before
service retirement may qualify for monthly benefits. If a member of the DC Plan dies before
retirement benefits begin, the member’s designated beneficiary is entitled to receive the
member’s account balance.
Funding Policy – Employer and member contribution rates are established by the State Teachers
Retirement Board and limited by Chapter 3307 of the Ohio Revised Code. For the fiscal year
ended June 30, 2021, the employer rate was 14% and the member rate was 14% of covered
payroll. The fiscal year 2021 contribution rates were equal to the statutory maximum rates, and
the full employer contribution was allocated to the pension fund.
The District’s contractually required contribution to STRS was $1,212,866 for fiscal year 2021.
Of this amount $223,968 is reported as an intergovernmental payable.
C. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
The net pension liability was measured as of June 30, 2020, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
District's proportion of the net pension liability was based on the District's share of contributions
to the pension plan relative to the contributions of all participating entities.
This space intentionally left blank.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
C. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions (Continued)
Following is information related to the proportionate share and pension expense:
SERS STRS Total
Proportionate Share of the Net Pension Liability $4,483,767 $16,232,701 $20,716,468
Proportion of the Net Pension Liability -2021 0.0677899% 0.06708714%
Proportion of the Net Pension Liability -2020 0.0659427% 0.06481946%
Percentage Change 0.0018472% 0.00226768%
Pension Expense $567,544 $2,285,945 $2,853,489
At June 30, 2021, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
SERS STRS Total
Deferred Outflows of Resources
Differences between expected and
actual experience $8,709 $36,422 $45,131
Change of assumptions 0 871,381 871,381
Net difference between projected and
actual earnings on pension plan investments 284,629 789,398 1,074,027
District contributions subsequent to the
measurement date 334,415 1,212,866 1,547,281
Changes in proportionate share 67,000 675,573 742,573
Total Deferred Outflows of Resources $694,753 $3,585,640 $4,280,393
Deferred Inflows of Resources
Differences between expected and
actual experience $0 $103,796 $103,796
Changes in proportionate share 16,560 0 16,560
Total Deferred Inflows of Resources $16,560 $103,796 $120,356
$1,547,281 reported as deferred outflows of resources related to pension resulting from District
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the fiscal year ending June 30, 2022. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pension will be recognized in
pension expense as follows:
SERS STRS Total
Fiscal Year Ending June 30:
2022 $25,274 $755,524 $780,798
2023 110,751 455,825 566,576
2024 118,641 606,111 724,752
2025 89,112 451,518 540,630
Total $343,778 $2,268,978 $2,612,756
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
D. Actuarial Assumptions
School Employees Retirement System (SERS)
SERS’ total pension liability was determined by their actuaries in accordance with GASB
Statement No. 67, as part of their annual actuarial valuation for each defined benefit retirement
plan. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
(e.g., salaries, credited service) and assumptions about the probability of occurrence of events far
into the future (e.g., mortality, disabilities, retirements, employment termination). Actuarially
determined amounts are subject to continual review and potential modifications, as actual results
are compared with past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employers and plan members) and include the types of benefits provided at
the time of each valuation and the historical pattern of sharing benefit costs between the
employers and plan members to that point. The projection of benefits for financial reporting
purposes does not explicitly incorporate the potential effects of legal or contractual funding
limitations.
Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial
calculations will take into account the employee’s entire career with the employer and also take
into consideration the benefits, if any, paid to the employee after termination of employment until
the death of the employee and any applicable contingent annuitant. In many cases actuarial
calculations reflect several decades of service with the employer and the payment of benefits after
termination.
Key methods and assumptions used in calculating the total pension liability in the latest actuarial
valuation, prepared as of June 30, 2020, are presented below:
Wage Inflation
3.00 percent
Future Salary Increases, including inflation 3.50 percent to 18.20 percent
COLA or Ad Hoc COLA 2.5 percent
Investment Rate of Return 7.50 percent net of investment expense, including inflation
Actuarial Cost Method Entry Age Normal
For 2020, the mortality rates were based on the RP-2014 Blue Collar Mortality Table with fully
generational projection and a five year age set-back for both males and females. Mortality among
service retired members, and beneficiaries were based upon the RP-2014 Blue Collar Mortality
Table with fully generational projection with Scale BB, 120 percent of male rates, and 110
percent of female rates. Mortality among disable members were based upon the RP-2000
Disabled Mortality Table, 90 percent for male rates and 100 percent for female rates, set back five
years is used for the period after disability retirement.
The most recent experience study was completed June 30, 2015.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
D. Actuarial Assumptions (Continued)
The long-term return expectation for the Pension Plan Investments has been determined by using
a building-block approach and assumes a time horizon, as defined in SERS’ Statement of
Investment Policy. A forecasted rate of inflation serves as the baseline for the return expectation.
Various real return premiums over the baseline inflation rate have been established for each asset
class. The long-term expected nominal rate of return has been determined by calculating an
arithmetic weighted average of the expected real return premiums for each asset class, adding the
projected inflation rate, and adding the expected return from rebalanced uncorrelated asset
classes. The target allocation and best estimates of arithmetic real rates of return for each major
assets class are summarized in the following table:
Target
Asset Class Allocation
Cash 2.00 % 1.85 %
US Stocks 22.50 5.75
Non-US Stocks 22.50 6.50
Fixed Income 19.00 2.85
Private Equity 12.00 7.60
Real Assets 17.00 6.60
Multi-Asset Strategies 5.00 6.65
Total 100.00 %
Long Term Expected
Real Rate of Return
Discount Rate - The total pension liability was calculated using the discount rate of 7.50 percent.
The projection of cash flows used to determine the discount rate assumed the contributions from
employers and from the members would be computed based on contribution requirements as
stipulated by State statute. Projected inflows from investment earning were calculated using the
long-term assumed investment rate of return (7.50 percent). Based on those assumptions, the
plan’s fiduciary net position was projected to be available to make all future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefits to determine the total pension
liability.
Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate - Net pension liability is sensitive to changes in the discount rate, and to illustrate
the potential impact the following table presents the net pension liability calculated using the
discount rate of 7.50 percent, as well as what each plan’s net pension liability would be if it were
calculated using a discount rate that is one percentage point lower (6.50 percent), or one
percentage point higher (8.50 percent) than the current rate.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
D. Actuarial Assumptions (Continued)
Current
1% Decrease Discount Rate 1% Increase
(6.50%) (7.50%) (8.50%)
District's proportionate share
of the net pension liability $6,142,213 $4,483,767 $3,092,299
State Teachers Retirement System (STRS)
Key methods and assumptions used in the latest actuarial valuation, reflecting experience study
results used in the July 1, 2020 actuarial valuation are presented below:
Inflation
2.50 percent
Projected salary increases 12.50 percent at age 20 to
2.50 percent at age 65
Investment Rate of Return 7.45 percent, net of investment
expenses, including inflation
Discount Rate 7.45 percent
Payroll Increases 3 percent
Cost-of-Living Adjustments 0.0 percent, effective July 1, 2017
(COLA)
Post-retirement mortality rates for healthy retirees are based on the RP-2014 Annuitant Mortality
Table with 50 percent of rates through age 69, 70 percent of rates between ages 70 and 79, 90
percent of rates between ages 80 and 84, and 100 percent of rates thereafter, projected forward
generationally using mortality improvement scale MP-2016. Post-retirement disabled mortality
rates are based on the RP-2014 Disabled Mortality Table with 90 percent of rates for males and
100 percent of rates for females, projected forward generationally using mortality improvement
scale MP-2016. Pre-retirement mortality rates are based on RP-2014 Employee Mortality Table,
projected forward generationally using mortality improvement scale MP-2016.
Actuarial assumptions used in the July 1, 2020 valuation are based on the results of an actuarial
experience study for the period July 1, 2011 through June 30, 2016.
The 10 year expected real rate of return on pension plan investments was determined by STRS’
investment consultant by developing best estimates of expected future real rates of return for each
major asset class. The target allocation and best estimates of geometric real rates of return for
each major asset class are summarized as follows:
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 10 - DEFINED BENEFIT PENSION PLANS (Continued)
D. Actuarial Assumptions (Continued)
Target
Asset Class
Allocation
*
Domestic Equity 28.00 % 7.35 %
International Equity 23.00 7.55
Alternatives 17.00 7.09
Fixed Income 21.00 3.00
Real Estate 10.00 6.00
Liquidity Reserves 1.00 2.25
Total 100.00 %
Long Term Expected
Rate of Return **
*Target weights will be phased in over a 24-month period concluding on July 1, 2019.
**10-Year geometric nominal returns, which include the real rate of return and inflation
of 2.25% and does not include investment expenses. Over a 30-year period, STRS'
investment consultant indicates that the above target allocations should generate a return
above the actuarial rate of return, without net value added by management.
Discount Rate - The discount rate used to measure the total pension liability was 7.45 percent as
of June 30, 2020. The projection of cash flows used to determine the discount rate assumes
member and employer contributions will be made at the statutory contribution rates in accordance
with rate increases described above. For this purpose, only employer contributions that are
intended to fund benefits of current plan members and their beneficiaries are included. Projected
employer contributions that are intended to fund the service costs of future plan members and
their beneficiaries, as well as projected contributions from future plan members, are not included.
Based on those assumptions, STRS’ fiduciary net position was projected to be available to make
all projected future benefit payments to current plan members as of June 30, 2020. Therefore, the
long-term expected rate of return on pension plan investments of 7.45 percent was applied to all
periods of projected benefit payments to determine the total pension liability as of June 30, 2020.
Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate - The following table presents the District's proportionate share of the net pension
liability calculated using the current period discount rate assumption of 7.45 percent, as well as
what the District's proportionate share of the net pension liability would be if it were calculated
using a discount rate that is one-percentage-point lower (6.45 percent) or one-percentage-point
higher (8.45 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.45%) (7.45%) (8.45%)
District's proportionate share
of the net pension liability $23,112,540 $16,232,701 $10,402,610
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 11 - DEFINED BENEFIT OPEB PLANS
A. Net OPEB Liability (Asset)
The net OPEB liability (asset) reported on the statement of net position represents a liability
(asset) for OPEB. OPEB is a component of exchange transactions-–between an employer and its
employees—of salaries and benefits for employee services. OPEB are provided to an employee—
on a deferred-payment basis—as part of the total compensation package offered by an employer
for employee services each financial period. The obligation to sacrifice resources for OPEB is a
present obligation because it was created as a result of employment exchanges that already have
occurred.
The net OPEB liability (asset) represents the District’s proportionate share of each OPEB plan’s
collective actuarial present value of projected benefit payments attributable to past periods of
service, net of each OPEB plan’s fiduciary net position. The net OPEB liability (asset) calculation
is dependent on critical long-term variables, including estimated average life expectancies,
earnings on investments, cost of living adjustments and others. While these estimates use the best
information available, unknowable future events require adjusting these estimates annually.
Ohio Revised Code limits the District’s obligation to annually required payments. The District
cannot control benefit terms or the manner in which OPEB are financed; however, the District
does receive the benefit of employees’ services in exchange for compensation including OPEB.
GASB 75 assumes the liability is solely the obligation of the employer, because they benefit from
employee services. OPEB contributions come from these employers and health care plan
enrollees which pay a portion of the health care costs in the form of a monthly premium. State
statute requires the retirement systems to amortize unfunded OPEB liabilities within 30 years. If
the OPEB amortization period exceeds 30 years, each retirement system’s board must propose
corrective action to the State legislature. Any resulting legislative change to benefits or funding
could significantly affect the net OPEB liability (asset). Resulting adjustments to the net OPEB
liability (asset) would be effective when the changes are legally enforceable. The Ohio Revised
Code permits, but does not require the retirement systems to provide healthcare to eligible benefit
recipients.
The proportionate share of each plan’s unfunded benefits is presented as a long-term net OPEB
liability on the accrual basis of accounting. Any liability for the contractually-required OPEB
contribution outstanding at the end of the year is included in intergovernmental payable on both
the accrual and modified accrual bases of accounting.
B. Plan Description
School Employees Retirement System (SERS)
Health Care Plan Description - The District contributes to the SERS Health Care Fund,
administered by SERS for non-certificated retirees and their beneficiaries. For GASB 75
purposes, this plan is considered a cost-sharing other postemployment benefit (OPEB) plan.
SERS’ Health Care Plan provides healthcare benefits to eligible individuals receiving retirement,
disability, and survivor benefits, and to their eligible dependents. Members who retire after June
1, 1986, need 10 years of service credit, exclusive of most types of purchased credit, to qualify to
participate in SERS’ health care coverage.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
B. Plan Description (Continued)
In addition to age and service retirees, disability benefit recipients and beneficiaries who are
receiving monthly benefits due to the death of a member or retiree, are eligible for SERS’ health
care coverage. Most retirees and dependents choosing SERS’ health care coverage are over the
age of 65 and therefore enrolled in a fully insured Medicare Advantage plan; however, SERS
maintains a traditional, self-insured preferred provider organization for its non-Medicare retiree
population. For both groups, SERS offers a self-insured prescription drug program. Health care is
a benefit that is permitted, not mandated, by statute. The financial report of the Plan is included
in the SERS Comprehensive Annual Financial Report which can be obtained on SERS’ website at
www.ohsers.org under Employers/Audit Resources.
Access to health care for retirees and beneficiaries is permitted in accordance with Section 3309
of the Ohio Revised Code. The Health Care Fund was established and is administered in
accordance with Internal Revenue Code Section 105(e). SERS’ Retirement Board reserves the
right to change or discontinue any health plan or program. Active employee members do not
contribute to the Health Care Plan. The SERS Retirement Board established the rules for the
premiums paid by the retirees for health care coverage for themselves and their dependents or for
their surviving beneficiaries. Premiums vary depending on the plan selected, qualified years of
service, Medicare eligibility, and retirement status.
Funding Policy – State statute permits SERS to fund the health care benefits through employer
contributions. Each year, after the allocation for statutorily required pensions and benefits, the
Retirement Board may allocate the remainder of the employer contribution of 14 percent of
covered payroll to the Health Care Fund in accordance with the funding policy. For fiscal year
2021, 0.0 percent of covered payroll was contributed to health care. An additional health care
surcharge on employers is collected for employees earning less than an actuarially determined
minimum compensation amount, pro-rated if less than a full year of service credit was earned.
For fiscal year 2021, this amount was $23,000. Statutes provide that no employer shall pay a
health care surcharge greater than 2 percent of that employer’s SERS-covered payroll; nor may
SERS collect in aggregate more than 1.5 percent of the total statewide SERS-covered payroll for
the health care surcharge. For fiscal year 2021, the District’s surcharge obligation was $45,024.
The surcharge, added to the allocated portion of the 14 percent employer contribution rate is the
total amount assigned to the Health Care Fund. The District’s contractually required contribution
to SERS was $45,024 for fiscal year 2021, which is reported as an intergovernmental payable.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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12/21/2021
NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
B. Plan Description (Continued)
State Teachers Retirement System (STRS)
Plan Description – The District contributes to the cost sharing multiple employer defined benefit
Health Plan administered by the State Teachers Retirement System of Ohio (STRS Ohio) for
eligible retirees who participated in the defined benefit or combined pension plans offered by
STRS Ohio. Benefits include hospitalization, physicians’ fees, prescription drugs and
reimbursement of monthly Medicare Part B premiums. The Plan is included in the report of
STRS Ohio which may be obtained by visiting www.strsoh.org or by calling (888) 227-7877.
Funding Policy – Ohio Revised Code Chapter 3307 authorizes STRS Ohio to offer the Plan and
gives the Retirement Board authority over how much, if any, of the health care costs will be
absorbed by STRS Ohio. Active employee members do not contribute to the Plan. All benefit
recipients pay a monthly premium. Under Ohio law, funding for post-employment health care
may be deducted from employer contributions. For 2021, STRS Ohio allocated employer
contributions equal to zero percent of covered payroll to the Health Care Stabilization Fund.
C. OPEB Liability (Asset), OPEB Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to OPEB
The net OPEB liability (asset) was measured as of June 30, 2020, and the total OPEB liability
used to calculate the net OPEB liability (asset) was determined by an actuarial valuation as of that
date. The District's proportion of the net OPEB liability (asset) was based on the District's share
of contributions to the pension and OPEB plans relative to the projected contributions of all
participating entities. Following is information related to the proportionate share:
SERS STRS Total
Proportionate Share of the Net OPEB Liability (Asset) $1,524,887 ($1,179,055) $345,832
Proportion of the Net OPEB Liability (Asset) -2021 0.0701637% 0.06708714%
Proportion of the Net OPEB Liability (Asset) -2020 0.0673291% 0.06481946%
Percentage Change 0.0028346% 0.00226768%
OPEB Expense $26,295 ($61,196) ($34,901)
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
C. OPEB Liability (Asset), OPEB Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to OPEB (Continued)
At June 30, 2021, the District reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
SERS STRS Total
Deferred Outflows of Resources
Differences between expected and
actual experience $20,028 $75,550 $95,578
Changes of assumptions 259,942 19,462 279,404
Net difference between projected and
actual earnings on OPEB plan investments 17,181 41,322 58,503
Changes in proportionate share 148,912 37,777 186,689
District contributions subsequent to the
measurement date 45,024 0 45,024
Total Deferred Outflows of Resources $491,087 $174,111 $665,198
Deferred Inflows of Resources
Differences between expected and
actual experience $775,510 $234,851 $1,010,361
Changes of assumptions 38,409 1,119,905 1,158,314
Changes in proportionate share 14,781 0 14,781
Total Deferred Inflows of Resources $828,700 $1,354,756 $2,183,456
$45,024 reported as deferred outflows of resources related to OPEB resulting from District
contributions subsequent to the measurement date will be recognized as a reduction of the net
OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense
as follows:
SERS STRS Total
Fiscal Year Ending June 30:
2022 ($71,642) ($295,555) ($367,197)
2023 (70,397) (267,582) (337,979)
2024 (70,601) (257,773) (328,374)
2025 (82,342) (251,712) (334,054)
2026 (66,521) (51,574) (118,095)
Thereafter (21,134) (56,449) (77,583)
Total ($382,637) ($1,180,645) ($1,563,282)
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions
School Employees Retirement System (SERS)
The total OPEB liability is determined by SERS’ actuaries in accordance with GASB Statement
No. 74, as part of their annual actuarial valuation for each retirement plan. Actuarial valuations of
an ongoing plan involve estimates of the value of reported amounts (e.g., salaries, credited
service) and assumptions about the probability of occurrence of events far into the future (e.g.,
mortality, disabilities, retirements, employment terminations). Actuarially determined amounts
are subject to continual review and potential modifications, as actual results are compared with
past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employers and plan members) and include the types of benefits provided at
the time of each valuation and the historical pattern of sharing benefit costs between the
employers and plan members to that point. The projection of benefits for financial reporting
purposes does not explicitly incorporate the potential effects of legal or contractual funding
limitations.
Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial
calculations will take into account the employee's entire career with the employer and also take
into consideration the benefits, if any, paid to the employee after termination of employment until
the death of the employee and any applicable contingent annuitant. In many cases, actuarial
calculations reflect several decades of service with the employer and the payment of benefits after
termination.
Key methods and assumptions used in calculating the total OPEB liability in the latest actuarial
valuation, prepared as of June 30, 2020, are presented below:
Wage Inflation
3.00 percent
Future Salary Increases, including inflation 3.50 percent to 18.20 percent
Investment Rate of Return 7.50 percent net of investment
expense, including inflation
Municipal Bond Index Rate:
Measurement Date 2.45 percent
Prior Measurement Date 3.13 percent
Single Equivalent Interest Rate, net of plan investment expense,
including price inflation
Measurement Date 2.63 percent
Prior Measurement Date 3.22 percent
Medical Trend Assumption
Medicare - Measurement Date 5.25 to 4.75 percent
Pre-Medicare - Measurement Date 7.00 to 4.75 percent
Medicare - Prior Measurement Date 5.25 to 4.75 percent
Pre-Medicare - Prior Measurement Date 7.00 to 4.75 percent
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions (Continued)
Mortality rates were based on the RP-2014 Blue Collar Mortality Table with fully generational
projection and Scale BB, 120 percent of male rates and 110 percent of female rates. RP-2000
Disabled Mortality Table with 90 percent for male rates and 100 percent for female rates set back
five years.
The most recent experience study was completed for the five year period ended June 30, 2015.
The long-term expected rate of return on plan assets is reviewed as part of the actuarial five-year
experience study. The most recent study covers fiscal years 2010 through 2015, and was adopted
by the Board on April 21, 2016. Several factors are considered in evaluating the long-term rate of
return assumption including long-term historical data, estimates inherent in current market data,
and a log-normal distribution analysis in which best-estimate ranges of expected future real rates
of return were developed by the investment consultant for each major asset class. These ranges
were combined to produce the long-term expected rate of return, 7.50 percent, by weighting the
expected future real rates of return by the target asset allocation percentage and then adding
expected inflation. The capital market assumptions developed by the investment consultant are
intended for use over a 10-year horizon and may not be useful in setting the long-term rate of
return for funding pension plans which covers a longer timeframe. The assumption is intended to
be a long-term assumption and is not expected to change absent a significant change in the asset
allocation, a change in the inflation assumption, or a fundamental change in the market that alters
expected returns in future years.
The target asset allocation and best estimates of arithmetic real rates of return for each major asset
class, as used in the June 30, 2015 five-year experience study, are summarized as follows:
Target
Asset Class Allocation
Cash 2.00 % 1.85 %
US Stocks 22.50 5.75
Non-US Stocks 22.50 6.50
Fixed Income 19.00 2.85
Private Equity 12.00 7.60
Real Assets 17.00 6.60
Multi-Asset Strategies 5.00 6.65
Total 100.00 %
Long Term Expected
Real Rate of Return
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions (Continued)
Discount Rate - The discount rate used to measure the total OPEB liability at June 30, 2020 was
2.63%. The discount rate used to measure the total OPEB liability at June 30, 2019 was 3.22%.
The projection of cash flows used to determine the discount rate assumed that contributions will
be made from members and the System at the state statute contribution rate of 2.00% of projected
covered employee payroll each year, which includes a 1.50% payroll surcharge and 0.50% of
contributions from the basic benefits plan. Based on these assumptions, the OPEB plan’s
fiduciary net position was projected to become insufficient to make future benefit payments
during the fiscal year ending June 30, 2025. Therefore, the long-term expected rate of return on
OPEB plan assets was used to present value the projected benefit payments through the fiscal
year ending June 30, 2024 and the Fidelity General Obligation 20-year Municipal Bond Index
rate of 2.45%, as of June 30, 2020 (i.e. municipal bond rate), was used to present value the
projected benefit payments for the remaining years in the projection. The total present value of
projected benefit payments from all years was then used to determine the single rate of return that
was used as the discount rate. The projection of future benefit payments for all current plan
members was until the benefit payments ran out.
Sensitivity of the District's Proportionate Share of the Net OPEB Liability to Changes in the
Discount and Health Care Cost Trend Rates – The net OPEB liability is sensitive to changes in
the discount rate and the health care cost trend rate. The following table presents the net OPEB
liability of SERS, what SERS' net OPEB liability would be if it were calculated using a discount
rate that is 1 percentage point lower (1.63%) and higher (3.63%) than the current discount rate
(2.63%). Also shown is what SERS' net OPEB liability would be based on health care cost trend
rates that are 1 percentage point lower (6.00% decreasing to 3.75%) and higher (8.00%
decreasing to 5.75%) than the current rate.
Current
1% Decrease Discount Rate 1% Increase
(1.63%) (2.63%) (3.63%)
School District's proportionate share
of the net OPEB liability $1,866,424 $1,524,887 $1,253,366
Current
1% Decrease Trend Rate 1% Increase
(6.00% Decreasing
(7.00% Decreasing
(8.00% Decreasing
to 3.75%) to 4.75%) to 5.75%)
School District's proportionate share
of the net OPEB liability $1,200,732 $1,524,887 $1,958,364
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions (Continued)
State Teachers Retirement System (STRS)
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation
2.50%
Projected salary increases 12.50% at age 20 to
2.50% at age 65
Investment Rate of Return 7.45%, net of investment
expenses, including inflation
Payroll Increases 3.00%
Discount Rate of Return 7.45%
Health Care Cost Trends
Medical
Pre-Medicare 5.00% initial, 4% ultimate
Medicare (6.69%) initial, 4% ultimate
Prescription Drug
Pre-Medicare 6.50% initial, 4% ultimate
Medicare 11.87% initial, 4% ultimate
Projections of benefits include the historical pattern of sharing benefit costs between the
employers and retired plan members.
For healthy retirees the mortality rates are based on the RP-2014 Annuitant Mortality Table with
50 percent of rates through age 69, 70 percent of rates between ages 70 and 79, 90 percent of
rates between ages 80 and 84, and 100 percent of rates thereafter, projected forward
generationally using mortality improvement scale MP-2016. For disabled retirees, mortality rates
are based on the RP-2014 Disabled Mortality Table with 90 percent of rates for males and 100
percent of rates for females, projected forward generationally using mortality improvement scale
MP-2016.
Actuarial assumptions used in the June 30, 2020 valuation are based on the results of an actuarial
experience study for the period July 1, 2011 through June 30, 2016.
Benefit Term Changes Since the Prior Measurement Date - There was no change to the
claims costs process. Claim curves were updated to reflect the projected FYE 2021 premium
based on June 30, 2020 enrollment distribution. The non-Medicare subsidy percentage was
increased effective January 1, 2021 from 1.984% to 2.055% per year of service. The non-
Medicare frozen subsidy base premium was increased effective January 1, 2021. The Medicare
subsidy percentages were adjusted effective January 1, 2021 to 2.1% for the AMA Medicare plan.
The Medicare Part B monthly reimbursement elimination date was postponed indefinitely.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions (Continued)
STRS’ investment consultant develops an estimate range for the investment return assumption
based on the target allocation adopted by the Retirement Board. The target allocation and long-
term expected rate of return for each major asset class are summarized as follows:
Target
Asset Class
Allocation
*
Domestic Equity 28.00 % 7.35 %
International Equity 23.00 7.55
Alternatives 17.00 7.09
Fixed Income 21.00 3.00
Real Estate 10.00 6.00
Liquidity Reserves 1.00 2.25
Total 100.00 %
*Target weights will be phased in over a 24-month period concluding on July 1, 2019.
** 10 year annualized geometric nominal returns, which include the
real rate of return and inflation of 2.25 percent and does not include
investment expenses. Over a 30-year period, STRS' investment
consultant indicates that the above target allocations should
generate a return above the actual rate of return, without net
value added by management.
Long-Term Expected
Rate of Return **
Discount Rate - The discount rate used to measure the total OPEB liability was 7.45 percent as of
June 30, 2020. The projection of cash flows used to determine the discount rate assumes STRS
Ohio continues to allocate no employer contributions to the health care fund. Based on these
assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on OPEB plan assets of 7.45% was used to measure the total OPEB liability as of
June 30, 2020.
This space intentionally left blank.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 11 - DEFINED BENEFIT OPEB PLANS (Continued)
D. Actuarial Assumptions (Continued)
Sensitivity of the District's Proportionate Share of the Net OPEB Liability (Asset) to Changes
in the Discount and Health Care Cost Trend Rates – The net OPEB liability (asset) is sensitive
to changes in the discount and health care cost trend rates. To illustrate the potential impact the
following table presents the net OPEB liability (asset) calculated using the discount rate of 7.45
percent, as well as what the net OPEB liability (asset) would be if it were calculated using a
discount rate that is one percentage point lower (6.45 percent), or one percentage point higher
(8.45 percent) than the current rate. Also shown is the net OPEB liability (asset) calculated using
a health care cost trend rate this is one percentage point lower and one percentage point higher.
Current
1% Decrease Discount Rate 1% Increase
(6.45%) (7.45%) (8.45%)
School District's proportionate share
of the net OPEB liability (asset) ($1,025,855) ($1,179,055) ($1,309,041)
1% Decrease Current 1% Increase
in Trend Rate Trend Rate in Trend Rate
School District's proportionate share
of the net OPEB liability (asset) ($1,300,972) ($1,179,055) ($1,030,543)
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HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 12 - LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS
The original amounts of the General Obligation Bonds Payable used to finance the cost of various
building renovations and the cost of building a new high school and other building additions were
$993,350 and $16,247,718. The original amount of the 2005 refunding, $9,999,987, was used to refund
the $16,247,718 bond. The 2015 refunding of $7,340,000 was used to partially refund the 2005
refunding. All refunded bonds have $0 outstanding balance at June 30, 2021 because they have been
called.
Detail of the changes in the bonds, capital leases payable and compensated absences of the District for the
year ended June 30, 2021 is as follows:
Balance Balance Due Within
June 30, 2020 Issued Retired June 30, 2021 One Year
Governmental Activities:
General Obligation Bonds Payable:
School Improvement Bonds 6.38% $900,000 $0 ($5,000) $895,000 $25,000
School Improvement Bonds-Refunding-2005 2.75-4.2% 216,252 0 (216,252) 0 0
School Improvement Bonds-Refunding-2015 2-4% 6,450,000 0 (60,000) 6,390,000 975,000
Subtotal General Obligation Bonds Payable 7,566,252 0 (281,252) 7,285,000 1,000,000
Premium on Refunding Bonds 313,728 0 (44,818) 268,910 0
Interest Accretion 775,833 52,915 (828,748) 0 0
Total General Obligation Bonds Payable 8,655,813 52,915 (1,154,818) 7,553,910 1,000,000
Capital Leases 58,472 0 (58,472) 0 0
Compensated Absences 1,399,278 258,025 (170,040) 1,487,263 113,877
Total Governmental Activities $10,113,563 $310,940 ($1,383,330) $9,041,173 $1,113,877
Principal and Interest Requirements
A summary of the District’s future long-term debt funding requirements, including principal and
interest payments as of June 30, 2021, follows:
General Obligation
Bonds Payable
Years Principal Interest
2022 $1,000,000 $249,059
2023 1,135,000 209,453
2024 1,180,000 162,563
2025 1,225,000 119,119
2026 1,270,000 76,800
2027-2028 1,475,000 38,128
Totals $7,285,000 $855,122
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 13 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; natural disasters; and injuries to employees. During fiscal year 2021 the
District contracted with Ohio School plan for various insurance coverages, Indian Harbor Insurance
Company for cyber coverage and a Lloyd’s America, Inc insurance syndicate for excess cyber insurance
as follows:
Coverage
Deductible
Aggregate
Fleet Insurance
$1,000/Comprehensive
for buses, $2550 for autos
$1,000/Collision for
busses, $500 for autos
$4,000,000
Buildings and Contents
$1,000
$58,972,908
School District Liability
$2,500
$4,000,000
Educational Fiduciary and
Employee Benefits Liability
$2,500
$6,000,000
School Leaders Errors and
Omissions
$2,500
$6,000,000
Employee Theft and Crime
$500
$100,000
Cyber
$5,000
$1,000,000
Excess Cyber
$0
$1,000,000
Except for excess policy, crime, inland marine and computers, there has been no significant reduction in
insurance coverages from the prior year. In addition, settled claims resulting from these risks have not
exceeded commercial insurance coverages in any of the past three fiscal years.
This space intentionally left blank.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
DRAFT
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NOTE 13 - RISK MANAGEMENT (Continued)
The District was a member of a cyber risk insurance pool with other school districts that was insured by
Indian Harbor Insurance Company. The pool’s liability insurance was limited to $10 million in aggregate
or $1 million per school per incident. This pool is reinsured by a Lloyd’s reinsurance syndicate
administered by Paragon for excess cyber coverage with a pool aggregate limit set at $50 million or $1
million per school per incident over and above the first cyber policy for the policy period. Coverage
limits reflected in the table above are limits per pool member. The excess cyber insurance pool policy is
non-licensed in the State of Ohio and is not covered by the Ohio Insurance Guaranty Association in the
case of insolvency.
The District participates in the Ohio School Boards Association Workers’ Compensation Group Rating
Plan (the GRP), an insurance purchasing pool. The intent of the GRP is to achieve the benefit of a
reduced premium for the District by virtue of its grouping and representation with other participants in the
GRP. The workers’ compensation experience of the participating school districts is calculated as one
experience and a common premium rate is applied to all school districts in the GRP. Each participant
pays its workers’ compensation premium to the State, based on the rate for the GRP rather that its
individual rate. Total savings are then calculated and each participant’s individual performance is
compared to the overall savings percentage of the GRP. A participant will then either receive money
from or be required to contribute to the “Equity Pooling Fund”. This “equity pooling” arrangement
insures that each participant shares equally in the overall performance of the GRP. Participation in the
GRP is limited to school districts that can meet the GRP’s selection criteria. The firm of Hunter
Consulting Company provides administrative, cost control and actuarial services to the GRP. The GRP’s
business and affairs are conducted by a three member Board of Directors consisting of the President, the
President-elect and the Immediate Past President of the OSBA. The Executive Director of the OSBA, or
his designee, serves as coordinator of the program. Each year, the participating school districts pay an
enrollment fee to the GRP to cover the costs of administering the program.
The District provides health care coverage through the Ohio School Benefits Cooperative (Consortium)
which administers a “fully-funded” health plan for its member school districts allowing a “pooling” of
covered individuals and their claims. Muskingum Valley ESC acts as the consortium’s fiscal agent and
maintains the Consortium Fund. The Consortium contracts with a third party plan administrator that
handles the plan’s claims and other administrative services (currently Medical Mutual of Ohio). The
District contracts with Anthem Blue Cross and Blue Shield to provide vision and dental care insurance
commercial coverage.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 14 – STATUTORY RESERVES
The District is required by state law to set aside certain general fund revenue amounts for capital
acquisition into a reserve. Reserves are calculated and presented on a cash basis. During the fiscal year
ended June 30, 2021, the reserve activity (cash-basis) was as follows:
Capital
Acquisition
Reserve
Set-aside Cash Balance as of June 30, 2020 $0
Current Year Additions 318,308
Qualifying Offset (226,792)
Current Year Disbursements (121,064)
Totals ($29,548)
Balance Carried Forward to FY2022 $0
The District had qualifying disbursements and other offsets that reduced the set-aside amounts below zero
for the Capital Acquisition Reserve; however, this amount may not be used to reduce the set-aside
requirement for future years.
NOTE 15 - JOINTLY GOVERNED ORGANIZATIONS
A. Licking Area Computer Association
Licking Area Computer Association - The District is a participant in the Licking Area Computer
Association (LACA) which is a computer council of governments. LACA is an association of
public school districts within the boundaries of Licking and Muskingum Counties. The
organization was formed for the purpose of applying modern technology with the aid of
computers and other electronic equipment to administrative and instructional functions among
member school districts. The governing board of LACA consists of nineteen members made up
of the nineteen district superintendents or their designees. The District paid LACA $266,446 for
services provided during the year. Financial information can be obtained from their fiscal agent,
the Licking County Career and Technical Education Center, Ben Streby, who serves as Treasurer,
at 150 Price Road, Newark, Ohio 43055.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 15 - JOINTLY GOVERNED ORGANIZATIONS (Continued)
B. State Support Team Region 11
The District participates in the State Support Team (SST11) Region 11, a jointly governed
organization consisting of educational entities within Delaware, Fairfield, Franklin, Licking,
Madison, Pickaway, and Union counties. The purpose of the SST11 is to provide support
services to school districts, community schools, and chartered nonpublic schools within the
region by supporting State and school initiatives and efforts to improve school effectiveness and
student achievement with a specific reference to the provision of special education and related
services. The SST11 is governed by an advisory council, which is the policymaking body for the
educational entities within the region, who identifies regional needs and priorities for educational
services and develops corresponding policies to coordinate the delivery of services. They are also
charged with the responsibility of monitoring the implementation of State and regional initiatives
and school improvement efforts. The Advisory Council is made up of the director of the SST11,
the superintendent of each educational service center within the region, the superintendent of the
region’s largest and smallest school district, the director and an employee from each education
technology center, one representative of a four-year institution of higher education and appointed
by the Ohio Board of Regents, one representative of a two-year institution of higher education
and appointed by the Ohio Association of Community Colleges, three board of education
members (one each from a city, exempted village, and local school district within the region), and
one business representative. The degree of control exercised by any participating educational
entity is limited to its representation on the Advisory Council. Financial information can be
obtained from the Educational Service Center of Central Ohio, Citygate Business Park, 2080
Citygate Drive, Columbus, OH, 43219.
NOTE 16 – CONTINGENCIES
A. Grants
The District receives financial assistance from federal agencies in the form of grants. The
disbursement of funds received under these programs generally requires compliance with terms
and conditions specified in the grant agreements and is subject to audit by the grantor agencies.
Any disallowed claims resulting from such audits could become a liability. However, the effect
of any such disallowed claims on the overall financial position of the District at June 30, 2021, if
applicable, cannot be determined at this time.
B. Litigation
The District is not a party to any legal proceedings which seek damages or injunctive relief
generally incidental to its operations and pending projects as of June 30, 2021.
HEATH CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
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NOTE 17 – OTHER COMMITMENTS
The District utilizes encumbrance accounting as part of its budgetary controls. Encumbrances outstanding
at year end may be reported as part of restricted, committed, or assigned classifications of fund balance.
Encumbrances outstanding at fiscal year-end were as follows:
Governmental Funds:
General Fund $7,430
Other Governmental Funds 59,975
Total Governmental Funds $67,405
NOTE 18 - COMPLIANCE AND ACCOUNTABILITY
Fund Deficits - The fund deficits at June 30, 2021 of $229,015 in the Elementary and Secondary School
Emergency Relief Fund, $39,059 in the Title VI-B Fund, $11,617 in the Title I Fund, and $17,016 in the
Other Federal Grants Fund (special revenue funds) arose from the recognition of expenditures on the
modified accrual basis which are greater than expenditures recognized on the budgetary basis. The
general fund is liable for any deficits in these funds and provides transfers when cash is required, not
when accruals occur.
NOTE 19 – COVID-19
The United States and the State of Ohio declared a state of emergency in March 2020 due to the COVID-
19 pandemic. The financial impact of COVID-19 and the continuing emergency measures may impact
subsequent periods of the District. The impact on the District’s future operating costs, revenues, and
additional recovery from emergency funding, either federal or state, cannot be estimated.
HEATH CITY SCHOOL DISTRICT
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Required Supplementary Information
Schedule of District’s Proportionate Share of the Net Pension Liability
Last Eight Fiscal Years
State Teachers Retirement System
2014 2015 2016
District's proportion of the net pension
liability 0.05974744% 0.05974744% 0.06042891%
District's proportionate share of the net
pension liability $17,311,192 $14,532,645 $16,700,783
District's covered payroll $6,661,546 $6,196,446 $6,143,793
District's proportionate share of the net
pension liability as a percentage
of its covered payroll 259.87% 234.53% 271.83%
Plan fiduciary net position as a
percentage of the total pension
liability 69.30% 74.70% 72.10%
Source: District Treasurer's Office and State Teachers Retirement System
School Employees Retirement System
2014 2015 2016
District's proportion of the net pension
liability 0.052246% 0.052246% 0.06019250%
District's proportionate share of the net
pension liability $3,106,902 $2,644,140 $3,434,642
District's covered payroll $1,929,429 $1,526,782 $1,760,425
District's proportionate share of the net
pension liability as a percentage
of its covered payroll 161.03% 173.18% 195.10%
Plan fiduciary net position as a
percentage of the total pension
liability 65.52% 71.70% 69.16%
Source: District Treasurer's Office and School Employees Retirement System
Notes: The District implemented GASB Statement 68 in 2015.
The schedule is intended to show ten years of information. Additional years
will be displayed as they become available. Information prior to 2014 is not available.
Amounts presented as of the District's measurement date which is the prior year end.
See accompanying notes to the required supplementary information
HEATH CITY SCHOOL DISTRICT
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2017 2018 2019 2020 2021
0.06160468% 0.06196745% 0.06307086% 0.06481946% 0.06708714%
$20,620,943 $14,720,501 $13,867,866 $14,334,434 $16,232,701
$6,625,093 $6,743,314 $7,242,279 $7,571,543 $7,996,893
311.26% 218.30% 191.48% 189.32% 202.99%
66.80% 75.30% 77.30% 77.40% 75.48%
2017 2018 2019 2020 2021
0.06282560% 0.06279870% 0.06748890% 0.06594270% 0.06778990%
$4,598,254 $3,752,084 $3,865,214 $3,945,467 $4,483,767
$1,951,129 $2,087,236 $2,127,704 $2,227,059 $2,289,671
235.67% 179.76% 181.66% 177.16% 195.83%
62.98% 69.50% 71.36% 70.85% 68.55%
HEATH CITY SCHOOL DISTRICT
DRAFT
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Required Supplementary Information
Schedule of District’s Pension Contributions
Last Ten Fiscal Years
State Teachers Retirement System
Fiscal Year 2012 2013 2014 2015
Contractually required contribution $928,456 $866,001 $805,538 $860,131
Contributions in relation to the
contractually required contribution 928,456 866,001 805,538 860,131
Contribution deficiency (excess) $0 $0 $0 $0
District's covered payroll $7,141,969 $6,661,546 $6,196,446 $6,143,793
Contributions as a percentage of 13.00% 13.00% 13.00% 14.00%
covered payroll
Source: District Treasurer's Office and State Teachers Retirement System
School Employees Retirement System
Fiscal Year 2012 2013 2014 2015
Contractually required contribution $248,002 $267,033 $211,612 $232,024
Contributions in relation to the
contractually required contribution 248,002 267,033 211,612 232,024
Contribution deficiency (excess) $0 $0 $0 $0
District's covered payroll $1,843,881 $1,929,429 $1,526,782 $1,760,425
Contributions as a percentage of 13.45% 13.84% 13.86% 13.18%
covered payroll
Source: District Treasurer's Office and School Employees Retirement System
Notes: The District implemented GASB Statement 68 in 2015.
See accompanying notes to the required supplementary information
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2016 2017 2018 2019 2020 2021
$927,513 $944,064 $1,013,919 $1,060,016 $1,119,565 $1,212,866
927,513 944,064 1,013,919 1,060,016 1,119,565 1,212,866
$0 $0 $0 $0 $0 $0
$6,625,093 $6,743,314 $7,242,279 $7,571,543 $7,996,893 $8,663,329
14.00% 14.00% 14.00% 14.00% 14.00% 14.00%
2016 2017 2018 2019 2020 2021
$273,158 $292,213 $287,240 $300,653 $320,554 $334,415
273,158 292,213 287,240 300,653 320,554 334,415
$0 $0 $0 $0 $0 $0
$1,951,129 $2,087,236 $2,127,704 $2,227,059 $2,289,671 $2,388,679
14.00% 14.00% 13.50% 13.50% 14.00% 14.00%
HEATH CITY SCHOOL DISTRICT
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Required Supplementary Information
Schedule of the District’s Proportionate Share of the Net Other Postemployment Benefits
(OPEB) Liability (Asset)
Last Five Fiscal Years
Fiscal Year 2017 2018 2019
District's proportion of the net OPEB
liability (asset) 0.06160468% 0.06196745% 0.06307086%
District's proportionate share of the net
OPEB liability (asset) $3,294,634 $2,417,741 ($1,013,484)
District's covered payroll $6,625,093 $6,743,314 $7,242,279
District's proportionate share of the net
OPEB liability (asset) as a percentage
of its covered payroll 49.73% 35.85% (13.99%)
Plan fiduciary net position as a
percentage of the total OPEB
liability 37.30% 47.10% 176.00%
Source: District Treasurer's Office and State Teachers Retirement System
Fiscal Year 2017 2018 2019
District's proportion of the net OPEB
liability 0.06302890% 0.06310650% 0.06804590%
District's proportionate share of the net
OPEB liability $1,796,557 $1,693,613 $1,887,777
District's covered payroll $1,951,129 $2,087,236 $2,127,704
District's proportionate share of the net
OPEB liability as a percentage
of its covered payroll 92.08% 81.14% 88.72%
Plan fiduciary net position as a
percentage of the total OPEB
liability 11.49% 12.46% 13.57%
Source: District Treasurer's Office and School Employees Retirement System
Notes: The District implemented GASB Statement 75 in 2018.
The schedule is intended to show ten years of information. Additional years
will be displayed as they become available. Information prior to 2017 is not available.
The schedule is reported as of the measurement date of the Net OPEB Liability (Asset),
which is the prior year end.
See accompanying notes to the required supplementary information
School Employees Retirement System
State Teachers Retirement System
HEATH CITY SCHOOL DISTRICT
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2020 2021
0.06481946% 0.06708714%
($1,073,566) ($1,179,055)
$7,571,543 $7,996,893
(14.18%) (14.74%)
174.74% 182.13%
2020 2021
0.06732910% 0.07016370%
$1,693,185 $1,524,887
$2,227,059 $2,289,671
76.03% 66.60%
15.57% 18.17%
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Required Supplementary Information
Schedule of District’s Other Postemployment Benefit (OPEB) Contributions
Last Ten Fiscal Years
State Teachers Retirement System
2012 2013 2014 2015
Contractually required contribution $71,420 $66,615 $61,964 $0
Contributions in relation to the
contractually required contribution 71,420 66,615 61,964 0
Contribution deficiency (excess) $0 $0 $0 $0
District's covered payroll $7,141,969 $6,661,546 $6,196,446 $6,143,793
Contributions as a percentage of 1.00% 1.00% 1.00% 0.00%
covered payroll
Source: District Treasurer's Office and State Teachers Retirement System
School Employees Retirement System
2012 2013 2014 2015
Contractually required contribution $32,543 $28,773 $27,849 $45,014
Contributions in relation to the
contractually required contribution 32,543 28,773 27,849 45,014
Contribution deficiency (excess) $0 $0 $0 $0
District's covered payroll $1,843,881 $1,929,429 $1,526,782 $1,760,425
Contributions as a percentage of 1.76% 1.49% 1.82% 2.56%
covered payroll
Source: District Treasurer's Office and School Employees Retirement System
Notes: The District implemented GASB Statement 75 in 2018.
See accompanying notes to the required supplementary information
HEATH CITY SCHOOL DISTRICT
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2016 2017 2018 2019 2020 2021
$0 $0 $0 $0 $0 $0
0 0 0 0 0 0
$0 $0 $0 $0 $0 $0
$6,625,093 $6,743,314 $7,242,279 $7,571,543 $7,996,893 $8,663,329
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2016 2017 2018 2019 2020 2021
$29,156 $31,528 $45,529 $51,063 $44,215 $45,024
29,156 31,528 45,529 51,063 44,215 45,024
$0 $0 $0 $0 $0 $0
$1,951,129 $2,087,236 $2,127,704 $2,227,059 $2,289,671 $2,388,679
1.49% 1.51% 2.14% 2.29% 1.93% 1.88%
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
NET PENSION LIABILITY
SERS
Changes in benefit terms – For fiscal year 2021, 2020 and 2019, there were no changes to benefit terms.
For fiscal year 2018, the following were the most significant changes in benefits that affected the total
pension liability since the prior measurement date:
The cost-of-living adjustment was changed from a fixed 3.00 percent to a cost-of-living
adjustment that is indexed to CPI-W not greater than 2.5 percent with a floor of 0 percenter
beginning January 1, 2018. In addition, with the authority granted the Board under HB 49, the
Board has enacted a three-year COLA suspension for benefit recipients in calendars 2018, 2019,
and 2020.
There were no changes to benefit terms for fiscal years 2015 through 2017.
Changes in assumptions – For fiscal years 2021, 2020, and 2019 there were no changes in assumptions.
For fiscal year 2018, the following changes were made to the actuarial assumptions as identified. These
new assumptions compared with those used in fiscal year 2017 and prior are presented below:
Assumed rate of inflation was reduced from 3.25% to 3.00%
Payroll Growth Assumption was reduced from 4.00% to 3.50%
Assumed real wage growth was reduced from 0.75% to 0.50
Rates of withdrawal, retirement and disability were updated to reflect recent experience.
Mortality among active members was updated to the following:
o RP-2014 Blue Collar Mortality Table with fully generational projection and a five year
age set-back for both males and females. The above rates represent the base rates used.
Mortality among service retired members, and beneficiaries was updated to the following:
o RP-2014 Blue Collar Mortality Table with fully generational projection with Scale BB,
120% of male rates, and 110% of female rates.
Mortality among disable member was updated to the following:
o RP-2000 Disabled Mortality Table, 90% for male rates and 100% for female rates, set
back five years is used for the period after disability retirement.
There were no changes in assumptions for fiscal years 2015 through 2017.
HEATH CITY SCHOOL DISTRICT
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Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
STRS
Changes in benefit terms – For fiscal year 2021, 2020 and 2019, there were no changes to benefit terms.
For fiscal year 2018, the cost of living adjustment (COLA) was reduced to 0 percent effective July 1,
2017.
Changes in assumptions – For fiscal year 2021, 2020 and 2019, there were no changes in assumptions.
For fiscal year 2018, the following were the most significant changes of assumptions that affected the
total pension liability since the prior measurement date:
Inflation assumptions were lowered from 2.75 percent to 2.50 percent.
Investment return assumptions were lowered from 7.75 percent to 7.45 percent.
Total salary increases rates were lowered by decreasing merit component of the individual salary
increases, as well as by 0.25 percent due to lower inflation.
Payroll growth assumptions were lowered to 3.00 percent.
Updated the health and disability mortality assumption to the RP-2014 mortality tables with
generational improvement scale MP-2016.
Rates of retirement, termination and disability were modified to better reflect anticipated future
experience.
There were no changes in assumptions for fiscal years 2015 through 2017.
NET OPEB LIABILITY (ASSET)
SERS
Changes in benefit terms – For fiscal year 2021 - 2018, there were no changes to benefit terms.
Changes in assumptions – For fiscal year 2021, the following were the most significant changes of
assumptions that affected the total OPEB liability since the prior measurement date:
The municipal bond index rate decreased from 3.13 percent to 2.45 percent.
The single equivalent interest rate, net of plan investment expense, including price inflation
decreased from 3.22 percent to 2.63 percent.
For fiscal year 2020, the following were the most significant changes of assumptions that affected the
total OPEB liability since the prior measurement date:
The municipal bond index rate decreased from 3.62 percent to 3.13 percent.
The single equivalent interest rate, net of plan investment expense, including price inflation
decreased from 3.70 percent to 3.22 percent.
The medical trend assumption rate changed as follows:
o Medicare – 2019 – 5.375 to 4.75 percent, 2020 – 5.25 to 4.75 percent
o Pre-Medicare – 2019 – 7.25 to 4.75 percent, 2020 – 7.00 to 4.75
HEATH CITY SCHOOL DISTRICT
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Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
SERS (Continued)
For fiscal year 2019, the following were the most significant changes of assumptions that affected the
total OPEB liability since the prior measurement date:
The municipal bond index rate increased from 3.56 percent to 3.62 percent.
The single equivalent interest rate, net of plan investment expense, including price inflation
increased from 3.63 percent to 3.70 percent.
The medical trend assumption rate changed as follows:
o Medicare – 2018 – 5.50 to 5.00 percent, 2019 – 5.375 to 4.75 percent
o Pre-Medicare – 2018 – 7.50 to 5.00 percent, 2019 – 7.25 to 4.75
For fiscal year 2018, the following was the most significant change of assumptions that affected the total
OPEB liability since the prior measurement date:
The discount rate was increased from 2.98 percent to 3.63.
For fiscal year 2017, the following was the most significant change of assumptions that affected the total
OPEB liability since the prior measurement date:
Assumed rate of inflation was reduced from 3.25% to 3.00%
Payroll Growth Assumption was reduced from 4.00% to 3.50%
Assumed real wage growth was reduced from 0.75% to 0.50%
Rates of withdrawal, retirement and disability were updated to reflect recent experience.
Mortality among active members was updated to the following:
o RP-2014 Blue Collar Mortality Table with fully generational projection and a five year
age set-back for both males and females.
Mortality among service retired members, and beneficiaries was updated to the following:
o RP-2014 Blue Collar Mortality Table with fully generational projection with Scale BB,
120% of male rates, and 110% of female rates.
Mortality among disabled members was updated to the following:
o RP-2000 Disabled Mortality Table, 90% for male rates and 100% for female rates, set
back five years is used for the period after disability retirement.
STRS
Changes in benefit terms – For fiscal year 2021, the following was the most significant change in benefit
terms that affected the total OPEB liability since the prior measurement date:
The non-Medicare subsidy percentage was increased effective January 1, 2021 from 1.984% to
2.055% per year of service. The non-Medicare frozen subsidy base premium was increased
effective January 1, 2021. The Medicare subsidy percentages were adjusted effective January 1,
2021 to 2.1% for the AMA Medicare plan. The Medicare Part B monthly reimbursement
elimination date was postponed indefinitely.
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Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
STRS (Continued)
For fiscal year 2020, the following was the most significant change in benefit terms that affected the total
OPEB liability since the prior measurement date:
The non-Medicare subsidy percentage was increased effective January 1, 2020 from 1.944% to
1.984% per year of service. The non-Medicare frozen subsidy base premium was increased
effective January 1, 2020. The Medicare subsidy percentages were adjusted effective January 1,
2021 to 2.1% for the Medicare plan. The Medicare Part B monthly reimbursement elimination
date was postponed to January 1, 2021.
For fiscal year 2019, the following was the most significant change in benefit terms that affected the total
OPEB liability since the prior measurement date:
The subsidy multiplier for non-Medicare benefit recipients increased from 1.9 percent to 1.944
percent per year of service effective January 1, 2019. The non-Medicare frozen subsidy base
premium increased effective January 1, 2019 and all remaining Medicare Part B premium
reimbursements were scheduled to be discontinued beginning January 1, 2020, though the STRS
Board voted in June 2019 to extent the current Medicare Part B partial reimbursement for one
year.
For fiscal year 2018, STRS has the following changes in benefit terms since the previous measurement
date:
The HealthSpan HMO plans were eliminated.
The subsidy multiplier for non-Medicare benefit recipients was reduced to 1.9 percent per year of
service from 2.1 percent.
Medicare Part B premium reimbursements were discontinued for survivors and beneficiaries who
were age 65 by 2008 and either receiving a benefit or named as a beneficiary as of January 1,
2008.
The remaining Medicare Part B premium reimbursements will be phased out over a three-year
period.
There were no changes to benefit terms for fiscal year 2017.
Changes in assumptions – For fiscal year 2021 the following were the most significant changes of
assumptions that affected the total OPEB liability since the prior measurement date:
The health care trend assumption rate changed as follows:
o Medical Medicare – from 4.93 percent to (6.69) percent initial, 4 percent ultimate
o Medical Pre-Medicare – from 5.87 percent to 5.00 percent initial, 4 percent ultimate
o Prescription Drug Medicare – from 7.73 percent to 11.87 percent initial, 4 percent
ultimate
o Prescription Drug Pre-Medicare – from 9.62 percent to 6.50 initial, 4 percent ultimate
HEATH CITY SCHOOL DISTRICT
DRAFT
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Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2021
STRS (Continued)
For fiscal year 2020, the following were the most significant changes of assumptions that affected the
total OPEB liability since the prior measurement date:
The health care trend assumption rate changed as follows:
o Medical Medicare – from 6 percent to 5.87 percent initial, 4 percent ultimate
o Medical Pre-Medicare – from 5 percent to 4.93 percent initial, 4 percent ultimate
o Prescription Drug Medicare – from 8 percent to 7.73 percent initial, 4 percent ultimate
o Prescription Drug Pre-Medicare – from -5.23 percent to 9.62 initial, 4 percent ultimate
For fiscal year 2019, the following were the most significant changes of assumptions that affected the
total OPEB liability since the prior measurement date:
The discount rate increased from a 4.13 percent blended discount rate to 7.45 percent.
The health care trend assumption rate changed from 6 to 11 percent initial, 4.5 percent ultimate
to:
o Medical Medicare – 5 percent initial, 4 percent ultimate
o Medical Pre-Medicare – 6 percent initial, 4 percent ultimate
o Prescription Drug Medicare – -5.23 percent initial, 4 percent ultimate
o Prescription Drug Pre-Medicare – 8 percent initial, 4 percent ultimate
For fiscal year 2018, the following were the most significant changes of assumptions that affected the
total OPEB liability since the prior measurement date:
The discount rate was increased from 3.26 percent to 4.13 percent based on the methodology
defined under GASB 74.
The long-term rate of return was reduced to 7.45 percent.
Valuation-year per capita health costs were updated.
The percentage of future retirees electing each option was updated based on current data.
The assumed future trend rates were modified.
Decrement rates including mortality, disability, retirement, and withdrawal were modified.
The assumed percentage of future disabled retirees assumed to elect health coverage was
decreased from 84 percent to 65 percent, and the assumed percentage of terminated vested
participants assumed to elect health coverage at retirement was decreased from 47 percent to 30
percent.
The assumed salary scale was modified.
HEATH CITY SCHOOL DISTRICT
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COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
THE FOLLOWING COMBINING STATEMENTS AND SCHEDULES INCLUDE
THE MAJOR AND NONMAJOR GOVERNMENTAL FUNDS.
HEATH CITY SCHOOL DISTRICT
DRAFT
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12/21/2021
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue funds are used to account for the proceeds of specific revenue sources (other
than amounts relating to private purpose trusts or major capital projects) that are legally
restricted to expenditures for specified purposes.
Food Service Fund
To record financial transactions associated with food service operations.
Uniform School Supply Fund
To account for the purchase and sale of school supplies. Profits derived from sales must
be used for school purposes or activities. (The Balance Sheet and Statement of Revenues,
Expenditures and Changes in Fund Balances are not presented because this fund is
reported as part of the General Fund on a GAAP basis.)
Rotary Fund
To account for operations that provide goods and services provided by the District. (The
Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances
are not presented because this fund is reported as part of the General Fund on a GAAP
basis.)
Public School Support Fund
To account for specific local revenue sources, other than taxes that are restricted to
expenditures for specified purposes, curricular and extracurricular, approved by board
resolutions. (The Balance Sheet and Statement of Revenues, Expenditures and Changes in
Fund Balances are not presented because this fund is reported as part of the General Fund
on a GAAP basis.)
Student Managed Activity Fund
To account for student activity programs which have student participation in the
activity and have student management of the programs.
District Managed Student Activity Fund
To account for student activity programs which have student participation in the
activity, but do not have student management of the programs. Typically this
includes athletic programs, band, cheerleaders and other similar types of activities.
Data Communications Fund
To account for monies received to assist the District with data connectivity for
student instruction and communications.
Student Wellness and Success Fund
To account for monies received to assist the District to plan and launch health and
wellness services to meet the needs of student wellness initiatives.
(Continued)
HEATH CITY SCHOOL DISTRICT
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Special Revenue Funds (continued)
Other State Grants Fund
To account for monies from state agencies which are not classified elsewhere.
Elementary and Secondary School Emergency Relief Fund
To account for federal monies received to address the impact COVID-19 had and
continues to have on elementary and secondary schools.
Coronavirus Relief Fund
This fund is used to account for Coronavirus Relief funds received through passage
of the CARES Act. These funds can be used for necessary expenditures incurred due
to the Covid-19 public health emergency. (The Balance Sheet is not presented
because there are no assets or liabilities at fiscal year end.)
Title VI-B Fund
To account for monies received through grants to assist in the identification of
children with disabilities, development of procedural safeguards, implementation of
least restrictive alternative service patterns, and provision of full educational
opportunities to children with disabilities at the preschool, elementary and secondary
levels.
Title III Limited English Proficiency Fund
To account for federal monies for elementary and secondary school programs,
including activities at the pre-school level, to meet the educational needs of children
of limited English proficiency.
Title I Fund
To account for federal revenues received to meet the special needs of educationally
deprived children.
IDEA Preschool Grant for the Handicapped Fund
To account for federal grant funds to be used for the improvement and expansion of
services for handicapped children ages three (3) through five (5) years. (The Balance
Sheet is not presented because there are no assets or liabilities at fiscal year-end.)
Improving Teacher Quality Fund
To account for federal monies received which are used to hire additional classroom
teachers in grades 1 through 3, so that the number of students per teacher will be
reduced. (The Balance Sheet is not presented because there are no assets or liabilities
at fiscal year-end
Other Federal Grants Fund
To account for monies from Federal agencies which are not classified elsewhere.
(Continued)
HEATH CITY SCHOOL DISTRICT
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Nonmajor Governmental Funds (Continued)
Capital Projects Funds
The Capital Projects Funds are used to account for the financial resources to be used for the
acquisition or construction of major capital facilities, other than those financed by proprietary
or trust funds.
Permanent Improvement Fund
To account for financial resources to be used for the acquisition of major capital
assets.
Building Fund
To account for the acquisition, construction and improvement of capital facilities as
authorized by Chapter 5705 of the Ohio Revised Code.
HEATH CITY SCHOOL DISTRICT
DRAFT
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Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Nonmajor
Special
Revenue Funds
Nonmajor
Capital Projects
Funds
Total Nonmajor
Governmental
Funds
Assets:
Cash and Cash Equivalents 443,434$ 373,934$ 817,368$
Receivables:
Taxes 0 1,372,541 1,372,541
Accounts 10,347 0 10,347
Intergovernmental 283,044 0 283,044
Interest 0 3,044 3,044
Inventory 13,391 0 13,391
Prepaid Items 55,466 0 55,466
Total Assets 805,682$ 1,749,519$ 2,555,201$
Liabilities:
Accounts Payable 104,243$ 40,125$ 144,368$
Accrued Wages and Benefits 186,693 0 186,693
Intergovernmental Payable 22,593 0 22,593
Interfund Loans Payable 197,000 0 197,000
Total Liabilities 510,529 40,125 550,654
Deferred Inflows of Resources:
Property Taxes 0 1,292,617 1,292,617
Unavailable Revenue 235,362 13,289 248,651
Total Deferred Inflows of Resources 235,362 1,305,906 1,541,268
Fund Balances:
Nonspendable 68,857 0 68,857
Restricted 301,397 403,488 704,885
Unassigned (310,463) 0 (310,463)
Total Fund Balances 59,791 403,488 463,279
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 805,682$ 1,749,519$ 2,555,201$
HEATH CITY SCHOOL DISTRICT
DRAFT
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Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2021
Nonmajor
Special
Revenue Funds
Nonmajor
Capital Projects
Funds
Total Nonmajor
Governmental
Funds
Revenues:
Local Sources:
Taxes 0$ 885,661$ 885,661$
Food Services 169,945 0 169,945
Investment Earnings 0 21,564 21,564
Extracurricular Activities 130,079 0 130,079
Intergovernmental - State 368,618 29,147 397,765
Intergovernmental - Federal 2,059,005 0 2,059,005
All Other Revenue 42,684 0 42,684
Total Revenue 2,770,331 936,372 3,706,703
Expenditures:
Current:
Instruction 976,279 250,055 1,226,334
Supporting Services:
Pupils 553,388 0 553,388
Instructional Staff 57,715 0 57,715
Administration 46,597 0 46,597
Fiscal Services 0 12,979 12,979
Pupil Transportation 48,993 78,812 127,805
Central 36,128 5,636 41,764
Operation of Non-Instructional Services:
Food Service Operations 928,547 0 928,547
Extracurricular Activities 225,872 0 225,872
Capital Outlay 53,596 714,050 767,646
Total Expenditures 2,927,115 1,061,532 3,988,647
Excess (Deficiency) of Revenues
Over Expenditures (156,784) (125,160) (281,944)
Other Financing Sources (Uses):
Transfers In 80,000 0 80,000
Total Other Financing Sources (Uses) 80,000 0 80,000
Net Change in Fund Balance (76,784) (125,160) (201,944)
Fund Balances at Beginning of Year, Restated 144,262 528,648 672,910
Increase in Inventory (7,687) 0 (7,687)
Fund Balances End of Year 59,791$ 403,488$ 463,279$
HEATH CITY SCHOOL DISTRICT
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Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2021
Food Service
Student Managed
Activity
District Managed
Student Activity
Data
Communication
Assets:
Cash and Cash Equivalents 128,179$ 54,168$ 60,467$ 437$
Receivables:
Accounts 10,347 0 0 0
Intergovernmental 0 0 0 0
Inventory 13,391 0 0 0
Prepaid Items 13,013 0 0 0
Total Assets 164,930$ 54,168$ 60,467$ 437$
Liabilities:
Accounts Payable 39,851$ 0$ 7,690$ 0$
Accrued Wages and Benefits 47,714 0 587 0
Intergovernmental Payable 11,348 0 91 0
Interfund Loans Payable 0 0 0 0
Total Liabilities 98,913 0 8,368 0
Deferred Inflows of Resources:
Unavailable Revenue 0 0 0 0
Total Deferred Inflows of Resources 0 0 0 0
Fund Balances:
Nonspendable 26,404 0 0 0
Restricted 39,613 54,168 52,099 437
Unassigned 0 0 0 0
Total Fund Balances (Deficit) 66,017 54,168 52,099 437
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 164,930$ 54,168$ 60,467$ 437$
(Continued)
HEATH CITY SCHOOL DISTRICT
DRAFT
- 98 -
12/21/2021
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2021
Student Wellness
and Success
Other State
Grants
Elementary and
Secondary
School
Emergency Relief
Title VI-B
Assets:
Cash and Cash Equivalents 187,829$ 0$ 1,181$ 5,954$
Receivables:
Accounts 0 0 0 0
Intergovernmental 0 0 221,391 23,046
Inventory 0 0 0 0
Prepaid Items 4,697 24,000 2,780 5,296
Total Assets 192,526$ 24,000$ 225,352$ 34,296$
Liabilities:
Accounts Payable 0$ 0$ 35,538$ 0$
Accrued Wages and Benefits 29,054 0 49,282 42,843
Intergovernmental Payable 4,611 0 3,840 1,512
Interfund Loans Payable 0 0 154,000 29,000
Total Liabilities 33,665 0 242,660 73,355
Deferred Inflows of Resources:
Unavailable Revenue 0 0 211,707 0
Total Deferred Inflows of Resources 0 0 211,707 0
Fund Balances:
Nonspendable 4,697 24,000 2,780 5,296
Restricted 154,164 0 0 0
Unassigned 0 0 (231,795) (44,355)
Total Fund Balances (Deficit) 158,861 24,000 (229,015) (39,059)
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 192,526$ 24,000$ 225,352$ 34,296$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 99 -
12/21/2021
Title III
Limited English
Proficiency
Title I
Other Federal
Grants
Total Nonmajor
Special Revenue
Funds
1,204$ 2,091$ 1,924$ 443,434$
0 0 0 10,347
0 9,910 28,697 283,044
0 0 0 13,391
0 5,680 0 55,466
1,204$ 17,681$ 30,621$ 805,682$
288$ 0$ 20,876$ 104,243$
0 17,213 0 186,693
0 85 1,106 22,593
0 12,000 2,000 197,000
288 29,298 23,982 510,529
0 0 23,655 235,362
0 0 23,655 235,362
0 5,680 0 68,857
916 0 0 301,397
0 (17,297) (17,016) (310,463)
916 (11,617) (17,016) 59,791
1,204$ 17,681$ 30,621$ 805,682$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 100 -
12/21/2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
Food Service
Student
Managed
Activity
District
Managed
Student
Activity
Data
Communication
Revenues:
Local Sources:
Food Services 169,945$ 0$ 0$ 0$
Extracurricular Activities 0 23,855 106,224 0
Class Materials and Fees 0 0 0 0
Intergovernmental - State 7,125 0 0 7,200
Intergovernmental - Federal 745,095 0 0 0
All Other Revenue 0 7,800 34,884 0
Total Revenue 922,165 31,655 141,108 7,200
Expenditures:
Current:
Instruction 0 0 0 0
Supporting Services:
Pupils 0 0 0 0
Instructional Staff 0 0 0 0
Administration 0 0 0 0
Pupil Transportation 0 0 0 0
Central 0 0 0 7,193
Operation of Non-Instructional Services:
Food Service Operations 928,547 0 0 0
Extracurricular Activities 0 28,489 197,383 0
Capital Outlay 0 0 0 0
Total Expenditures 928,547 28,489 197,383 7,193
Excess (Deficiency) of Revenues
Over Expenditures (6,382) 3,166 (56,275) 7
Other Financing Sources (Uses):
Transfers In 0 0 80,000 0
Total Other Financing Sources (Uses) 0 0 80,000 0
Net Change in Fund Balance (6,382) 3,166 23,725 7
Fund Balances at Beginning of Yearn Restated 80,086 51,002 28,374 430
Decrease in Inventory (7,687) 0 0 0
Fund Balances End of Year 66,017$ 54,168$ 52,099$ 437$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 101 -
12/21/2021
Student
Wellness and
Success
Other State
Grants
Elementary and
Secondary
School
Emergency Relief
Coronavirus
Relief
Title VI-B
Title III
Limited English
Proficiency
0$ 0$ 0$ 0$ 0$ 0$
0 0 0 0 0 0
0 0 0 0 0 0
313,205 41,088 0 0 0 0
0 0 170,879 147,162 449,521 1,587
0 0 0 0 0 0
313,205 41,088 170,879 147,162 449,521 1,587
0 0 207,596 147,162 250,304 994
216,812 0 138,702 0 157,792 0
0 3,487 0 0 0 0
0 0 0 0 25,662 0
0 41,088 0 0 0 0
0 8,000 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 53,596 0 0 0
216,812 52,575 399,894 147,162 433,758 994
96,393 (11,487) (229,015) 0 15,763 593
0 0 0 0 0 0
0 0 0 0 0 0
96,393 (11,487) (229,015) 0 15,763 593
62,468 35,487 0 0 (54,822) 323
0 0 0 0 0 0
158,861$ 24,000$ (229,015)$ 0$ (39,059)$ 916$
(Continued)
HEATH CITY SCHOOL DISTRICT
DRAFT
- 102 -
12/21/2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
Title I
IDEA
Preschool
Grant for the
Handicapped
Improving
Teacher
Quality
Other Federal
Grants
Revenues:
Local Sources:
Food Services 0$ 0$ 0$ 0$
Extracurricular Activities 0 0 0 0
Class Materials and Fees 0 0 0 0
Intergovernmental - State 0 0 0 0
Intergovernmental - Federal 309,315 7,905 43,293 184,248
All Other Revenue 0 0 0 0
Total Revenue 309,315 7,905 43,293 184,248
Expenditures:
Current:
Instruction 264,300 0 0 105,923
Supporting Services:
Pupils 0 0 0 40,082
Instructional Staff 0 0 43,293 10,935
Administration 0 0 0 20,935
Pupil Transportation 0 7,905 0 0
Central 0 0 0 20,935
Operation of Non-Instructional Services:
Food Service Operations 0 0 0 0
Extracurricular Activities 0 0 0 0
Capital Outlay 0 0 0 0
Total Expenditures 264,300 7,905 43,293 198,810
Excess (Deficiency) of Revenues
Over Expenditures 45,015 0 0 (14,562)
Other Financing Sources (Uses):
Transfers In 0 0 0 0
Total Other Financing Sources (Uses) 0 0 0 0
Net Change in Fund Balance 45,015 0 0 (14,562)
Fund Balances at Beginning of Yearn Restated (56,632) 0 0 (2,454)
Decrease in Inventory 0 0 0 0
Fund Balances End of Year (11,617)$ 0$ 0$ (17,016)$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 103 -
12/21/2021
Total Nonmajor
Special
Revenue Funds
169,945$
130,079
0
368,618
2,059,005
42,684
2,770,331
976,279
553,388
57,715
46,597
48,993
36,128
928,547
225,872
53,596
2,927,115
(156,784)
80,000
80,000
(76,784)
144,262
(7,687)
59,791$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 104 -
12/21/2021
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2021
Permanent
Improvement
Building
Total Nonmajor
Capital Projects
Funds
Assets:
Cash and Cash Equivalents 346,814$ 27,120$ 373,934$
Receivables:
Taxes 1,372,541 0 1,372,541
Interest 3,044 0 3,044
Total Assets 1,722,399$ 27,120$ 1,749,519$
Liabilities:
Accounts Payable 40,125$ 0$ 40,125$
Total Liabilities 40,125 0 40,125
Deferred Inflows of Resources:
Property Taxes 1,292,617 0 1,292,617
Unavailable Revenue 13,289 0 13,289
Total Deferred Inflows of Resources 1,305,906 0 1,305,906
Fund Balances:
Restricted 376,368 27,120 403,488
Total Fund Balances 376,368 27,120 403,488
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 1,722,399$ 27,120$ 1,749,519$
HEATH CITY SCHOOL DISTRICT
DRAFT
- 105 -
12/21/2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Projects Funds
For the Fiscal Year Ended June 30, 2021
Permanent
Improvement
Building
Total Nonmajor
Capital Projects
Funds
Revenues:
Local Sources:
Taxes 885,661$ 0$ 885,661$
Investment Earnings 20,888 676 21,564
Intergovernmental - State 29,147 0 29,147
Total Revenue 935,696 676 936,372
Expenditures:
Current:
Instruction 250,055 0 250,055
Supporting Services:
Fiscal Services 12,979 0 12,979
Pupil Transportation 78,812 0 78,812
Central 5,636 0 5,636
Capital Outlay 714,050 0 714,050
Total Expenditures 1,061,532 0 1,061,532
Excess (Deficiency) of Revenues
Over (Under) Expenditures (125,836) 676 (125,160)
Other Financing Sources (Uses):
Net Change in Fund Balance (125,836) 676 (125,160)
Fund Balances at Beginning of Year 502,204 26,444 528,648
Fund Balances End of Year 376,368$ 27,120$ 403,488$
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Major Debt Service Fund – Bond Retirement Fund
For the Fiscal Year Ended June 30, 2021
DRAFT
- 106 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Taxes
1,439,002$ 1,439,002$ 0$
Intergovernmental - State
240,982 240,982 0
Total Revenues 1,679,984 1,679,984 0
Expenditures:
Current:
Support Services:
Fiscal Services 22,099 22,099 0
Total Support Services 22,099 22,099 0
Debt Service:
Principal Retirement 1,110,000 1,110,000 0
Interest and Fiscal Charges 265,325 265,241 84
Total Debt Service 1,375,325 1,375,241 84
Total Expenditures 1,397,424 1,397,340 84
Excess (Deficiency) of Revenues
Over (Under) Expenditures
282,560 282,644 84
Fund Balance at Beginning of Year 1,596,357 1,596,357 0
Fund Balance at End of Year 1,878,917$ 1,879,001$ 84$
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 107 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Food Services 134,546$ 167,254$ 32,708$
Intergovernmental - State
21,819 7,125 (14,694)
Intergovernmental - Federal
757,933 668,179 (89,754)
Total Revenues 914,298 842,558 (71,740)
Expenditures:
Non-Instructional Services:
Food Service Operations 805,100 802,172 2,928
Total Expenditures 805,100 802,172 2,928
Excess (Deficiency) of Revenues
Over (Under) Expenditures
109,198 40,386 (68,812)
Fund Balance at Beginning of Year 87,793 87,793 0
Fund Balance at End of Year 196,991$ 128,179$ (68,812)$
FOOD SERVICE FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 108 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Class Material and Fees 73,211$ 72,303$ (908)$
Total Revenues 73,211 72,303 (908)
Expenditures:
Instructional Services 70,530 69,812 718
Support Services:
Central 21,900 21,834 66
Total Expenditures 92,430 91,646 784
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(19,219) (19,343) (124)
Other Financing Sources (Uses):
Transfers In 13,989 13,989 0
Total Other Financing Sources (Uses): 13,989 13,989 0
Net Change in Fund Balance
(5,230) (5,354) (124)
Fund Balance at Beginning of Year 69,872 69,872 0
Fund Balance at End of Year 64,642$ 64,518$ (124)$
UNIFORM SCHOOL SUPPLY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 109 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
All Other Revenues 3,819$ 3,819$ 0$
Total Revenues 3,819 3,819 0
Expenditures:
Instructional Services 4,500 4,472 28
Total Expenditures 4,500 4,472 28
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(681) (653) 28
Fund Balance at Beginning of Year 9,771 9,771 0
Fund Balance at End of Year 9,090$ 9,118$ 28$
ROTARY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 110 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
All Other Revenues 33,156$ 41,144$ 7,988$
Total Revenues 33,156 41,144 7,988
Expenditures:
Instructional Services 9,388 8,425 963
Support Services:
Pupils 11,375 9,893 1,482
Instructional Staff 10,100 10,029 71
Administration 4,431 3,530 901
Central 5,483 5,217 266
Extracurricular 10,300 10,284 16
Capital Outlay 1,900 1,898 2
Total Expenditures 52,977 49,276 3,701
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(19,821) (8,132) 11,689
Fund Balance at Beginning of Year 212,666 212,666 0
Fund Balance at End of Year 192,845$ 204,534$ 11,689$
PUBLIC SCHOOL SUPPORT FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 111 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Extracurricular Activities 21,609$ 23,855$ 2,246$
All Other Revenues 7,300 7,800 500
Total Revenues 28,909 31,655 2,746
Expenditures:
Extracurricular Activities 30,208 28,489 1,719
Total Expenditures 30,208 28,489 1,719
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,299) 3,166 4,465
Other Financing Sources (Uses):
Transfers In 4,711 0 (4,711)
Transfers Out (4,711) 0 4,711
Total Other Financing Sources (Uses) 0 0 0
Net Change in Fund Balance (1,299) 3,166 4,465
Fund Balance at Beginning of Year 51,002 51,002 0
Fund Balance at End of Year 49,703$ 54,168$ 4,465$
STUDENT MANAGED ACTIVITY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 112 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Investment Earnings 0$ 0$ 0$
Extracurricular Activities 95,259 106,224 10,965
All Other Revenues 33,817 34,884 1,067
Total Revenues 129,076 141,108 12,032
Expenditures:
Extracurricular Activities 189,900 189,015 885
Total Expenditures 189,900 189,015 885
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(60,824) (47,907) 12,917
Other Financing Sources (Uses):
Transfers In 95,000 80,000 (15,000)
Advances Out (15,000) 0 15,000
Total Other Financing Sources (Uses) 80,000 80,000 0
Net Change in Fund Balance 19,176 32,093 12,917
Fund Balance at Beginning of Year 28,174 28,174 0
Prior Year Encumbrances 200 200 0
Fund Balance at End of Year 47,550$ 60,467$ 12,917$
DISTRICT MANAGED STUDENT ACTIVITY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 113 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - State
7,200$ 7,200$ 0$
Total Revenues 7,200 7,200 0
Expenditures:
Support Services:
Central 10,800 10,363 437
Total Expenditures 10,800 10,363 437
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(3,600) (3,163) 437
Fund Balance at Beginning of Year 3,600 3,600 0
Fund Balance at End of Year 0$ 437$ 437$
DATA COMMUNICATIONS FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 114 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - State
313,205$ 313,205$ 0$
Total Revenues 313,205 313,205 0
Expenditures:
Support Services:
Pupils 217,500 215,600 1,900
Total Expenditures 217,500 215,600 1,900
Excess (Deficiency) of Revenues
Over (Under) Expenditures
95,705 97,605 1,900
Fund Balance at Beginning of Year 90,224 90,224 0
Fund Balance at End of Year 185,929$ 187,829$ 1,900$
STUDENT WELLNESS AND SUCCESS FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 115 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - State
41,088$ 41,088$ 0$
Total Revenues 41,088 41,088 0
Expenditures:
Support Services:
Instructional Staff 3,487 3,487 0
Pupil Transportation 41,088 41,088 0
Total Expenditures 44,575 44,575 0
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(3,487) (3,487) 0
Fund Balance at Beginning of Year 3,487 3,487 0
Fund Balance at End of Year 0$ 0$ 0$
OTHER STATE GRANTS FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 116 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
161,195$ 161,195$ 0$
Total Revenues 161,195 161,195 0
Expenditures:
Instructional Services 184,726 184,579 147
Support Services:
Pupils 108,600 108,502 98
Capital Outlay 21,000 20,933 67
Total Expenditures 314,326 314,014 312
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(153,131) (152,819) 312
Other Financing Sources (Uses):
Advances In 154,000 154,000 0
Total Other Financing Sources (Uses): 154,000 154,000 0
Net Change in Fund Balance
869 1,181 312
Fund Balance at Beginning of Year 0 0 0
Fund Balance at End of Year 869$ 1,181$ 312$
ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 117 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
147,162$ 147,162$ 0$
Total Revenues 147,162 147,162 0
Expenditures:
Instructional Services 147,162 147,162 0
Total Expenditures 147,162 147,162 0
Excess (Deficiency) of Revenues
Over (Under) Expenditures
0 0 0
Fund Balance at Beginning of Year 0 0 0
Fund Balance at End of Year 0$ 0$ 0$
CORONAVIRUS RELIEF FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 118 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
426,474$ 426,475$ 1$
Total Revenues 426,474 426,475 1
Expenditures:
Instructional Services 248,380 242,511 5,869
Support Services:
Pupils 160,534 160,534 0
Administration 27,537 27,537 0
Total Expenditures 436,451 430,582 5,869
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(9,977) (4,107) 5,870
Other Financing Sources (Uses):
Advances In 29,000 29,000 0
Advances Out (25,000) (25,000) 0
Total Other Financing Sources (Uses) 4,000 4,000 0
Net Change in Fund Balance (5,977) (107) 5,870
Fund Balance at Beginning of Year 6,061 6,061 0
Fund Balance at End of Year 84$ 5,954$ 5,870$
TITLE VI-B FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 119 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
1,587$ 1,587$ 0$
Total Revenues 1,587 1,587 0
Expenditures:
Instructional Services 1,123 1,029 94
Total Expenditures 1,123 1,029 94
Excess (Deficiency) of Revenues
Over (Under) Expenditures
464 558 94
Fund Balance at Beginning of Year 323 323 0
Fund Balance at End of Year 787$ 881$ 94$
TITLE III LIMITED ENGLISH PROFICIENCY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 120 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
304,640$ 299,405$ (5,235)$
Total Revenues 304,640 299,405 (5,235)
Expenditures:
Instructional Services 296,586 294,619 1,967
Total Expenditures 296,586 294,619 1,967
Excess (Deficiency) of Revenues
Over (Under) Expenditures
8,054 4,786 (3,268)
Other Financing Sources (Uses):
Advances In 12,000 12,000 0
Advances Out (20,000) (20,000) 0
Total Other Financing Sources (Uses): (8,000) (8,000) 0
Net Change in Fund Balance
54 (3,214) (3,268)
Fund Balance at Beginning of Year 5,305 5,305 0
Fund Balance at End of Year 5,359$ 2,091$ (3,268)$
TITLE I FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 121 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
7,905$ 7,905$ 0$
Total Revenues 7,905 7,905 0
Expenditures:
Support Services:
Pupil Transportation 7,905 7,905 0
Total Expenditures 7,905 7,905 0
Excess (Deficiency) of Revenues
Over (Under) Expenditures
0 0 0
Fund Balance at Beginning of Year 0 0 0
Fund Balance at End of Year 0$ 0$ 0$
IDEA PRESCHOOL GRANT FOR THE HANDICAPPED FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 122 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
43,293$ 43,293$ 0$
Total Revenues 43,293 43,293 0
Expenditures:
Support Services:
Instructional Staff 43,293 43,293 0
Total Expenditures 43,293 43,293 0
Excess (Deficiency) of Revenues
Over (Under) Expenditures
0 0 0
Fund Balance at Beginning of Year 0 0 0
Fund Balance at End of Year 0$ 0$ 0$
IMPROVING TEACHER QUALITY FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2021
DRAFT
- 123 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental - Federal
179,206$ 179,206$ 0$
Total Revenues 179,206 179,206 0
Expenditures:
Instructional Services 85,543 85,543 0
Support Services:
Pupils 40,766 40,766 0
Instructional Staff 12,500 11,811 689
Administration 20,935 20,935 0
Central 20,935 20,935 0
Total Expenditures 180,679 179,990 689
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,473) (784) 689
Other Financing Sources (Uses):
Advances In 2,000 2,000 0
Advances Out (5,000) (5,000) 0
Total Other Financing Sources (Uses): (3,000) (3,000) 0
Net Change in Fund Balance
(4,473) (3,784) 689
Fund Balance at Beginning of Year 4,832 4,832 0
Fund Balance at End of Year 359$ 1,048$ 689$
OTHER FEDERAL GRANTS FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Capital Projects Funds
For the Fiscal Year Ended June 30, 2020
DRAFT
- 124 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Local Sources:
Taxes
830,015$ 829,631$ (384)$
Investment Earnings 16,484 19,999 3,515
Intergovernmental - State
29,147 29,147 0
All Other Revenues 0 0 0
Total Revenues 875,646 878,777 3,131
Expenditures:
Instructional Services 366,100 365,458 642
Support Services:
Fiscal Services 13,071 12,979 92
Pupil Transportation 78,812 78,812 0
Central 5,600 5,557 43
Capital Outlay 973,500 973,161 339
Total Expenditures 1,437,083 1,435,967 1,116
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(561,437) (557,190) 4,247
Fund Balance at Beginning of Year 255,818 255,818 0
Prior Year Encumbrances 589,410 589,410 0
Fund Balance at End of Year 283,791$ 288,038$ 4,247$
PERMANENT IMPROVEMENT FUND
HEATH CITY SCHOOL DISTRICT
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)
Nonmajor Capital Projects Funds
For the Fiscal Year Ended June 30, 2020
DRAFT
- 125 -
12/21/2021
Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Revenues:
Investment Earnings 707$ 676$ (31)$
Total Revenues 707 676 (31)
Expenditures:
Total Expenditures 0 0 0
Excess (Deficiency) of Revenues
Over (Under) Expenditures
707 676 (31)
Fund Balance at Beginning of Year 26,444 26,444 0
Fund Balance at End of Year 27,151$ 27,120$ (31)$
BUILDING FUND
HEATH CITY SCHOOL DISTRICT
DRAFT
- 126 -
12/21/2021
STATISTICAL SECTION
HEATH CITY SCHOOL DISTRICT
DRAFT
- S 1 -
8/7/2018
STATISTICAL TABLES
This part of the Districts comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about
the District's overall financial health.
Contents
Financial Trends
S 2 – S 13
These schedules contain trend information to help the reader understand how
the District's financial position has changed over time.
Revenue Capacity
S 14 – S 21
These schedules contain information to help the reader understand and assess
the factors affecting the District's ability to generate its most significant local
revenue sources, property taxes.
Debt Capacity
S 22 – S 29
These schedules present information to help the reader assess the affordability
of the District's current levels of outstanding debt and the District's ability to
issue additional debt in the future.
Economic and Demographic Information
S 30 – S 33
These schedules offer economic and demographic indicators to help the reader
understand the environment within which the District's financial activities take
place and to provide information that facilitates comparisons of financial
information over time and among governments.
Operating Information
S 34 – S 45
These schedules contain service and infrastructure data to help the reader
understand how the information in the District's financial report relates to the
services the District provides and the activities it performs.
Sources Note:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
2012 2013 2014 2015
Governmental Activities: *
Net Investment in Capital Assets $2,239,306 $1,569,237 $1,007,118 $668,117
Restricted for:
Capital Projects 738,118 692,224 653,740 661,314
Debt Service 1,128,253 1,042,315 1,038,847 1,063,596
Statutory Purposes 140,760 61,909 108,722 81,520
Federal and State Grant Programs 36,153 33,557 54,850 46,561
Unrestricted (1,279,996) (2,343,361) (20,546,771) (18,183,979)
Total Governmental Activities Net Position $3,002,594 $1,055,881 ($17,683,494) ($15,662,871)
Primary Government:
Net Investment in Capital Assets $2,239,306 $1,569,237 $1,007,118 $668,117
Restricted 2,043,284 1,830,005 1,856,159 1,852,991
Unrestricted (1,279,996) (2,343,361) (20,546,771) (18,183,979)
Total Primary Government Net Position $3,002,594 $1,055,881 ($17,683,494) ($15,662,871)
* Restated
Source: District Treasurer's Office
Heath City School District
Net Position by Component
Last Ten Years
(accrual basis of accounting)
- S 2 -
2016 2017 2018 2019 2020 2021
* *
$1,387,709 $1,638,635 $2,116,344 $2,516,261 $3,646,520 $3,920,842
560,592 589,014 679,363 737,612 531,613 416,777
1,237,784 998,467 1,395,292 1,442,042 1,682,531 1,948,331
81,982 95,543 56,396 111,260 145,630 157,228
77,319 48,913 35,836 38,835 114,485 190,853
(17,112,694) (20,943,208) (11,282,637) (8,799,138) (7,962,634) (7,176,162)
($13,767,308) ($17,572,636) ($6,999,406) ($3,953,128) ($1,841,855) ($542,131)
$1,387,709 $1,638,635 $2,116,344 $2,516,261 $3,646,520 $3,920,842
1,957,677 1,731,937 2,166,887 2,329,749 2,474,259 2,713,189
(17,112,694) (20,943,208) (11,282,637) (8,799,138) (7,962,634) (7,176,162)
($13,767,308) ($17,572,636) ($6,999,406) ($3,953,128) ($1,841,855) ($542,131)
Heath City School District
- S 3 -
2012 2013 2014 2015
Expenses
Governmental Activities:
Instruction $9,989,037 $10,304,880 $10,096,148 $10,513,018
Support Services:
Pupils 805,150 632,193 621,994 583,590
Instructional Staff 344,754 318,009 264,908 324,069
Board of Education 20,516 79,588 80,043 49,101
Administration 1,618,593 1,468,112 1,518,459 1,523,311
Fiscal Services 492,224 506,287 528,591 578,977
Business 17,713 29,284 14,330 20,438
Operation and Maintenance of Plant 1,306,882 1,351,000 1,330,607 1,507,678
Pupil Transportation 638,839 654,334 637,015 592,204
Central 280,810 275,932 308,948 451,684
Operation of Non-Instructional Services
Community Services 6,117 1,776 4,410 1,994
Food Service Operations 616,504 616,807 567,567 596,853
Shared Services 0 0 17,994 54,691
Other 1,900 0 0 0
Extracurricular Activities 574,354 601,322 593,994 618,078
Interest and Fiscal Charges 1,024,811 1,117,528 891,757 657,894
Total Primary Government Expenses $17,738,204 $17,957,052 $17,476,765 $18,073,580
Program Revenues
Governmental Activities:
Charges for Services
Instruction $137,166 $156,220 $600,894 $948,735
Support Services:
Pupils 45,392 41,000 43,788 60,609
Operation of Non-Instructional Services
Food Service Operations 241,808 220,566 186,257 152,316
Extracurricular Activities 87,820 102,999 134,064 124,900
Operating Grants and Contributions 838,086 895,828 1,026,547 1,087,236
Capital Grants and Contributions 0 0 0 0
Total Governmental Activities
Program Revenues 1,350,272 1,416,613 1,991,550 2,373,796
Heath City School District
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
- S 4 -
2016 2017 2018 2019 2020 2021
$11,220,535 $11,477,367 $5,716,009 $10,521,710 $13,103,894 $14,273,518
640,770 705,634 522,576 874,557 1,214,501 1,308,266
325,261 381,955 486,743 706,334 846,060 967,695
248,574 329,525 63,368 106,787 138,228 156,391
1,748,840 1,673,351 1,094,581 1,485,126 1,730,240 1,924,020
466,731 636,550 605,510 732,416 718,154 705,579
28,922 13,562 17,892 16,137 11,926 16,334
1,909,197 1,838,229 1,598,068 1,933,978 1,736,633 1,706,530
643,460 654,868 628,413 757,602 815,607 786,334
347,036 403,385 240,897 265,375 409,538 419,302
4,416 0 0 0 0 0
653,795 727,620 724,156 923,351 911,863 970,484
0 0 0 0 0 0
0 0 0 0 0 0
616,176 793,082 424,403 849,040 995,357 1,000,564
544,983 474,616 464,897 441,336 348,477 246,193
$19,398,696 $20,109,744 $12,587,513 $19,613,749 $22,980,478 $24,481,210
$1,037,209 $1,219,571 $1,484,917 $1,823,216 $2,145,424 $2,235,092
55,620 60,990 51,269 83,483 44,423 0
198,299 235,209 264,402 437,187 371,107 169,945
130,864 148,799 134,362 147,118 123,855 130,079
1,123,022 1,229,537 1,185,904 1,301,886 1,635,333 2,492,212
0 0 0 0 837,500 41,088
2,545,014 2,894,106 3,120,854 3,792,890 5,157,642 5,068,416
(Continued)
Heath City School District
- S 5 -
2012 2013 2014 2015
Net (Expense)/Revenue
Governmental Activities (16,387,932) (16,540,439) (15,485,215) (15,699,784)
Total Primary Government
Net (Expense)/Revenue ($16,387,932) ($16,540,439) ($15,485,215) ($15,699,784)
General Revenues and Other Changes in Net Position
Governmental Activities:
Property Taxes Levied for:
General Purposes $6,981,958 $6,623,175 $7,854,925 $8,621,606
Debt Service 1,161,817 1,095,634 1,171,836 1,290,787
Capital Outlay 172,436 177,920 186,087 187,583
Grants and Entitlements not
Restricted to Specific Programs 6,098,286 6,145,307 6,383,632 7,086,554
Investment Earnings 9,489 7,825 6,886 10,716
Miscellaneous 520,717 543,865 543,418 523,161
Total Primary Government $14,944,703 $14,593,726 $16,146,784 $17,720,407
Change in Net Position
Governmental Activities (1,443,229) (1,946,713) 661,569 2,020,623
Total Primary Government
Change in Net Position ($1,443,229) ($1,946,713) $661,569 $2,020,623
Source: District Treasurer's Office
Heath City School District
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
- S 6 -
2016 2017 2018 2019 2020 2021
(16,853,682) (17,215,638) (9,466,659) (15,820,859) (17,822,836) (19,412,794)
($16,853,682) ($17,215,638) ($9,466,659) ($15,820,859) ($17,822,836) ($19,412,794)
$9,279,815 $9,239,268 $10,485,484 $8,964,782 $10,333,478 $10,246,008
1,343,433 1,150,316 1,359,339 1,206,282 1,399,048 1,422,031
196,007 192,177 211,594 183,116 211,811 893,830
7,371,309 7,435,029 7,643,707 7,709,959 7,392,727 7,737,617
29,265 65,859 119,740 309,956 377,228 14,794
529,416 388,805 220,025 493,042 167,854 398,238
$18,749,245 $18,471,454 $20,039,889 $18,867,137 $19,882,146 $20,712,518
1,895,563 1,255,816 10,573,230 3,046,278 2,059,310 1,299,724
$1,895,563 $1,255,816 $10,573,230 $3,046,278 $2,059,310 $1,299,724
Heath City School District
- S 7 -
2012 2013 2014 2015
General Fund
Nonspendable $171,764 $58,886 $2,463 $2,075
Restricted 86,144 5,881 36,428 15,307
Committed 0 0 0 0
Assigned 143,303 124,352 717,659 187,650
Unassigned 1,167,714 0 533,211 2,810,841
Total General Fund 1,568,925 189,119 1,289,761 3,015,873
All Other Governmental Funds
Nonspendable 27,854 18,872 63,584 42,889
Restricted 1,893,664 1,811,895 1,779,099 1,809,505
Unassigned (21,255) (44,961) (27,959) (15,973)
Total All Other Governmental Funds 1,900,263 1,785,806 1,814,724 1,836,421
Total Governmental Funds $3,469,188 $1,974,925 $3,104,485 $4,852,294
* Restated
Source: District Treasurer's Office
Heath City School District
Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
- S 8 -
2016 2017 2018 2019 2020 2021
*
$27,763 $29,944 $0 $228,193 $232,672 $230,870
0 0 0 0 0 0
0 0 0 0 248,247 248,247
261,619 175,101 531,080 682,787 829,605 211,104
4,221,923 6,021,754 8,355,313 8,524,927 9,923,795 11,997,691
4,511,305 6,226,799 8,886,393 9,435,907 11,234,319 12,687,912
17,200 33,000 49,849 74,707 84,710 68,857
1,949,189 1,695,240 2,128,484 2,288,854 2,394,769 2,661,616
0 (53,802) (25,226) (47,486) (121,742) (310,463)
1,966,389 1,674,438 2,153,107 2,316,075 2,357,737 2,420,010
$6,477,694 $7,901,237 $11,039,500 $11,751,982 $13,592,056 $15,107,922
Heath City School District
- S 9 -
2012 2013 2014 2015
Revenues:
Local Sources:
Taxes $8,381,872 $8,082,155 $9,250,713 $10,115,662
Tuition 66,003 78,449 535,675 890,288
Food Service 241,808 220,566 186,257 152,316
Investment Earnings 9,590 7,807 6,416 9,938
Extracurricular Activities 87,820 102,999 134,064 124,900
Class Materials and Fees 64,454 76,887 64,719 57,449
Intergovernmental - State 6,115,330 6,048,971 6,647,676 7,194,372
Intergovernmental - Federal 836,314 920,119 879,254 982,893
All Other Revenue 572,818 585,749 583,706 584,368
Total Revenue 16,376,009 16,123,702 18,288,480 20,112,186
Expenditures:
Current:
Instruction 9,631,529 9,887,089 9,671,600 10,227,343
Supporting Services:
Pupils 809,099 609,970 597,979 610,112
Instructional Staff 324,278 301,093 243,751 317,931
Board of Education 20,516 79,588 80,043 49,101
Administration 1,638,441 1,506,325 1,459,945 1,507,152
Fiscal Services 487,692 502,551 536,825 573,425
Business 17,713 29,284 14,330 20,438
Operation and Maintenance of Plant 1,222,560 1,208,877 1,253,864 1,423,453
Pupil Transportation 585,119 613,996 584,559 544,902
Central 278,397 274,241 308,225 448,230
Operation of Non-Instructional Services
Community Services 6,117 1,776 4,410 1,994
Food Service Operations
583,818 583,763 531,695 553,134
Shared Services 0 0 17,994 54,691
Other 1,900 0 0 0
Extracurricular Activities 421,200 452,268 426,676 463,049
Capital Outlay 49,870 174,798 274,419 68,586
Debt Service:
Principal Retirement 866,702 983,849 923,699 1,022,773
Interest and Fiscal Charges 491,780 485,280 484,775 465,915
Total Expenditures 17,436,731 17,694,748 17,414,789 18,352,229
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,060,722) (1,571,046) 873,691 1,759,957
Heath City School District
Changes in Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
- S 10 -
2016 2017 2018 2019 2020 2021
$10,830,906 $10,637,252 $12,058,474 $10,332,895 $11,956,798 $12,607,475
979,931 1,161,902 1,425,622 1,743,264 2,047,087 2,130,956
198,299 235,209 264,402 437,187 371,107 169,945
28,683 62,562 112,336 301,643 371,613 16,045
130,864 148,799 134,362 147,118 123,855 130,079
56,246 57,169 59,295 65,452 77,337 76,136
7,435,863 7,556,848 7,754,127 7,840,232 7,825,680 8,117,211
1,040,547 1,037,083 1,134,337 1,175,567 1,097,468 2,059,005
585,668 450,295 261,294 591,025 233,277 426,238
21,287,007 21,347,119 23,204,249 22,634,383 24,104,222 25,733,090
10,839,935 10,872,530 11,090,703 11,414,377 11,902,325 12,909,964
625,555 657,412 644,394 918,782 1,113,697 1,215,662
305,817 321,093 581,614 694,798 757,647 896,946
248,574 329,525 63,368 106,787 138,228 156,391
1,726,393 1,516,556 1,703,790 1,535,711 1,541,750 1,760,729
514,527 601,325 629,735 692,595 658,746 670,902
28,922 13,562 17,892 16,137 11,926 16,334
1,677,527 1,570,171 1,575,075 1,830,963 1,522,193 1,545,663
607,345 554,295 652,338 705,637 734,678 768,250
344,887 408,367 246,830 296,739 389,984 407,470
4,416 0 0 0 0 0
603,909 699,024 709,644 869,190 873,348 949,218
0 0 0 0 0 0
0 0 0 0 0 0
460,474 591,781 631,697 751,048 778,300 707,012
308,295 646,597 173,287 725,296 735,489 769,544
1,073,448 1,135,286 1,063,627 1,182,351 1,160,378 1,168,472
437,664 331,426 295,132 276,662 271,592 266,980
19,807,688 20,248,950 20,079,126 22,017,073 22,590,281 24,209,537
1,479,319 1,098,169 3,125,123 617,310 1,513,941 1,523,553
(Continued)
Heath City School District
- S 11 -
2012 2013 2014 2015
Heath City School District
Changes in Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
Other Financing Sources (Uses):
Sale of Capital Assets 0 0 4,000 400
Insurance Proceeds 0 0 0 0
Refunding General Obligation Bonds Issued 0 0 0 0
Premium on General
Obligation Refunding Bond 0 0 0 0
Payment to Refunded Bond Escrow Agent 0 0 0 0
Other Financing Sources - Capital Leases 0 74,450 250,956 0
Transfers In 0 0 50,000 85,000
Transfers Out 0 0 (50,000) (85,000)
Total Other Financing Sources (Uses) 0 74,450 254,956 400
Net Change in Fund Balance ($1,060,722) ($1,496,596) $1,128,647 $1,760,357
Debt Service as a Percentage
of Noncapital Expenditures 7.81% 8.36% 8.21% 8.13%
Source: District Treasurer's Office
- S 12 -
2016 2017 2018 2019 2020 2021
Heath City School District
400 3,000 2,000 0 0 0
0 0 0 89,200 18,100 0
7,340,000 0 0 0 0 0
493,000 0 0 0 0 0
(7,688,354) 0 0 0 0 0
0 325,526 8,820 0 0 0
0 101,150 128,825 0 276,806 80,000
0 (101,150) (128,825) 0 (28,559) (80,000)
145,046 328,526 10,820 89,200 266,347 0
$1,624,365 $1,426,695 $3,135,943 $706,510 $1,780,288 $1,523,553
7.70% 7.43% 6.83% 6.88% 6.57% 6.16%
- S 13 -
Tax year 2011 2012 2013 2014
* **
Real Property
Assessed $246,409,720 $248,432,630 $248,446,390 $246,138,835
Actual 704,027,771 709,807,514 709,846,829 703,253,814
Public Utility
Assessed 6,342,490 6,675,260 7,976,040 8,025,020
Actual 6,342,490 6,675,260 7,976,040 8,025,020
Total
Assessed 252,752,210 255,107,890 256,422,430 254,163,855
Actual 710,370,261 716,482,774 717,822,869 711,278,834
Assessed Value as a
Percentage of Actual Value 35.58% 35.61% 35.72% 35.73%
Total Direct Tax Rate $55.70 $53.85 $61.75 $63.10
Source: Licking County Auditor
* Reappraisal
** Update
Presented on a calendar year basis because that is the manner
in which the information is maintained by the County.
Assessed value of Real Property is at 35%, Assessed value of Public Utility is at 100%.
Heath City School District
Assessed Valuations and Estimated True Values of Taxable Property
Last Ten Calendar Years
- S 14 -
2015 2016 2017 2018 2019 2020
* **
$234,500,020 $236,501,406 $259,175,790 $259,850,293 $261,638,294 $285,512,290
670,000,057 675,718,303 740,502,257 742,429,409 747,537,983 815,749,400
9,434,090 11,761,470 12,215,810 18,044,810 20,431,940 22,460,320
9,434,090 11,761,470 12,215,810 18,044,810 20,431,940 22,460,320
243,934,110 248,262,876 271,391,600 277,895,103 282,070,234 307,972,610
679,434,147 687,479,773 752,718,067 760,474,219 767,969,923 838,209,720
35.90% 36.11% 36.05% 36.54% 36.73% 36.74%
$64.30 $63.30 $62.60 $62.60 $62.00 $64.80
Heath City School District
- S 15 -
2011 2012 2013 2014
Direct District Rates
General Fund 49.30 47.60 55.50 56.60
Bond Retirement Fund 5.20 5.05 5.05 5.30
Permanent Improvement Fund 1.20 1.20 1.20 1.20
Total 55.70 53.85 61.75 63.10
Overlapping Rates
City of Heath 5.40 5.65 5.40 5.40
Career and Technical Education Center 2.54 2.48 2.56 2.54
Licking County 7.70 7.70 7.70 8.00
Licking County Library 1.00 1.00 1.00 1.00
Licking County Park District 0.00 0.00 0.25 0.25
Ohio Revised Code Sections 5705.02 and 5705.07 require a vote of the people for any millage exceeding the
"unvoted" or "inside" millage.
Source:
Licking County Auditor's Office
Licking County Treasurer's Office
Heath City School District
Property Tax Rates of Direct and Overlapping Governments
(per $1,000 of assessed value)
Last Ten Calendar Years
- S 16 -
2015 2016 2017 2018 2019 2020
57.80 57.20 56.10 56.10 55.50 54.30
5.30 4.90 5.30 5.30 5.30 5.30
1.20 1.20 1.20 1.20 1.20 5.20
64.30 63.30 62.60 62.60 62.00 64.80
6.40 6.40 6.40 6.40 6.40 6.40
2.58 2.57 2.55 2.55 2.55 2.50
8.00 8.00 9.50 9.50 9.50 9.50
1.00 1.00 1.00 1.00 1.00 1.00
0.25 0.25 0.25 0.25 0.25 0.25
Heath City School District
- S 17 -
Heath City School District
- S 18 -
Heath City School District
Principal Taxpayers
Real Estate Tax and Public Utilities Personal Property
Current Year and Nine Years Ago
Percent of
Total
Assessed Assessed
Name of Taxpayer Nature of Business Value Rank Value
Ohio Power Company Utility Company - Electric $12,716,060
1
4.13%
AEP Ohio Transmission Co, Inc. Utility Company - Electric 6,616,710
2
2.15%
Southgate Association Limited Partnership Shopping Center 5,512,500
3
1.79%
Glimcher Properties Limited Partnership Development 5,145,000
4
1.67%
Quest Heathwood Village LLC Apartments 4,094,900
5
1.33%
Wal*Mart Stores, Inc. Retail Store 3,308,240
6
1.07%
JLH Realty LLC Real Estate 3,102,290
7
1.01%
Heath-Newark-Licking
County Port Authority Real Estate - Leasing 3,004,200
8
0.98%
Kaiser Aluminum and
Chemical Corporation Aluminum Processing 2,646,250
9
0.86%
Cross Creek Limited Partnership Shopping Center 2,555,000
10
0.83%
Subtotal 48,701,150 15.82%
All Others 259,271,460 84.18%
Total $307,972,610 100.00%
Percent of
Total
Assessed Assessed
Name of Taxpayer Nature of Business Value Rank Value
Glimcher Properties Limited Partnership Development $9,933,600
1
3.93%
Southgate Association Limited Partnership Shopping Center 5,543,160
2
2.19%
Ohio Power Company Utility Company - Electric 4,953,280
3
1.96%
Heath-Newark-Licking
County Port Authority Real Estate - Leasing 4,008,550
4
1.59%
Wal*Mart Stores, Inc. Retail Store 2,807,670
5
1.11%
Cross Creek Limited Partnership Shopping Center 2,614,120
6
1.03%
Inland Western Heath Southgate LLC Shopping Center 2,571,800
7
1.02%
Kaiser Aluminum and
Chemical Corporation Aluminum Processing 2,427,780
8
0.96%
H&D Holding Company Development 2,332,260
9
0.92%
Glenwood Apartments LLC Apartments 2,136,820
10
0.85%
Subtotal 39,329,040 15.56%
All Others 213,423,170 84.44%
Total $252,752,210 100.00%
Source: Licking County Auditor - Land and Buildings
Based on valuation of property in 2020 and 2011
Presented on a calendar year basis because that is the manner
in which the information is maintained by the County.
Calendar Year 2011
Calendar Year 2020
- S 19 -
Collection Year 2011 2012 2013
Total Tax Levy $9,476,237 $9,495,631 $9,003,974
Collections within the Fiscal Year of the Levy
Current Tax Collections 9,196,764 9,149,588 8,709,214
Percent of Levy Collected 97.05% 96.36% 96.73%
Delinquent Tax Collections (1)
336,523 96,940 3,969
Total Tax Collections 9,533,287 9,246,528 8,713,183
Percent of Total Tax Collections To Tax Levy 100.60% 97.38% 96.77%
Accumulated Outstanding Delinquent Taxes 214,485 232,431 183,748
Percentage of Accumulated Delinquent Taxes to Total Tax Levy 2.26% 2.45% 2.04%
Source: Licking County Auditor's Office
Presented on a calendar year basis because that is the manner
in which the information is maintained by the County.
(1) The County's current computer system is unable to track delinquent tax collections by tax year.
Heath City School District
Property Tax Levies and Collections
Last Ten Years
- S 20 -
2014 2015 2016 2017 2018 2019 2020
$10,960,686 $11,119,757 $11,551,120 $11,419,479 $12,048,452 $12,409,906 $12,493,640
10,649,259 10,812,156 11,223,676 11,188,024 11,870,917 12,227,045 12,233,310
97.16% 97.23% 97.17% 97.97% 98.53% 98.53% 97.92%
167,209 161,863 284,617 225,920 197,873 203,873 242,426
10,816,468 10,974,019 11,508,293 11,413,944 12,068,790 12,430,918 12,475,736
98.68% 98.69% 99.63% 99.95% 100.17% 100.17% 99.86%
190,554 125,628 120,889 153,338 174,622 162,162 116,555
1.74% 1.13% 1.05% 1.34% 1.45% 1.31% 0.93%
Heath City School District
- S 21 -
2012 2013 2014 2015
Governmental Activities (1)
*
General Obligation Bonds Payable $15,061,386 $14,522,171 $13,902,047 $13,170,033
Capital Leases 69,131 64,732 301,989 204,216
Total Primary Government $15,130,517 $14,586,903 $14,204,036 $13,374,249
Population (2)
City of Heath 10,310 10,310 10,310 10,310
Outstanding Debt Per Capita 1,468 1,415 1,378 1,297
Income (3)
Personal (in thousands) 386,532 388,470 396,822 410,699
Percentage of Personal Income 3.91% 3.75% 3.58% 3.26%
* Restated for Deferred Charge on Refunding
Sources:
(1) District Treasurer's Office
(2) US Bureau of Census of Population
(3) US Department of Commerce, Bureau of Economic Analysis
(a) Per Capita Income is only available by County, Total Personal
Income is a calculation based on previous calendar year
Heath City School District
Ratio of Outstanding Debt By Type
Last Ten Years
- S 22 -
2016 2017 2018 2019 2020 2021
$12,140,782 $11,355,564 $10,566,487 $9,655,045 $8,655,813 $7,553,910
105,768 256,008 191,201 113,850 58,472 0
$12,246,550 $11,611,572 $10,757,688 $9,768,895 $8,714,285 $7,553,910
10,310 10,310 10,310 10,310 10,310 10,412
1,188 1,126 1,043 948 845 726
428,700 435,257 455,826 474,868 489,704 529,034
2.86% 2.67% 2.36% 2.06% 1.78% 1.43%
Heath City School District
- S 23 -
Year 2012 2013 2014 2015
Population (1)
10,310 10,310 10,310 10,310
Assessed Value (2)
252,752,210 255,107,890 256,422,430 254,163,855
General Bonded Debt (3)
General Obligation Bonds 15,061,386 14,522,171 13,902,047 13,170,033
Resources Available to Pay Principal (4)
1,103,745 1,042,575 1,049,893 1,075,169
Net General Bonded Debt 13,957,641 13,479,596 12,852,154 12,094,864
Ratio of Net Bonded Debt
to Assessed Value 5.52% 5.28% 5.01% 4.76%
Net Bonded Debt per Capita 1,353.80 1,307.43 1,246.57 1,173.12
Source:
(1) U.S. Bureau of Census of Population
(2) Licking County Auditor
(3) Includes all general obligation bonded debt supported by property taxes
(4) Includes only Debt Service funds available on a modified GAAP basis
for general obligation bonded debt supported by property taxes.
Heath City School District
Ratios of General Bonded Debt Outstanding
Last Ten Years
- S 24 -
2016 2017 2018 2019 2020 2021
10,310 10,310 10,310 10,310 10,310 10,412
243,934,110 248,262,876 271,391,600 277,895,103 282,070,234 307,972,610
12,140,782 11,355,564 10,566,487 9,655,045 8,655,813 7,553,910
1,242,170 1,006,492 1,399,129 1,443,227 1,684,827 1,956,731
10,898,612 10,349,072 9,167,358 8,211,818 6,970,986 5,597,179
4.47% 4.17% 3.38% 2.96% 2.47% 1.82%
1,057.09 1,003.79 889.17 796.49 676.14 537.57
Heath City School District
- S 25 -
Heath City School District
- S 26 -
Heath City School District
Computation of Direct and Overlapping
Debt Attributable to Governmental Activities
June 30, 2021
Percentage Amount
Applicable to Applicable to
Net Debt Heath City Heath City
Jurisdiction Outstanding School District School District
Direct:
Heath City School District $7,553,910 100.00% $7,553,910
Overlapping:
City of Heath 6,140,000 90.42% 5,551,788
Career and Technical Education Center
10,560,000 5.53% 583,968
Licking County 28,540,537 5.75% 1,641,081
Subtotal 7,776,837
Total $15,330,747
Source: Licking County and Fiscal Officers of Subdivision
Overlapping percentage was calculated by dividing each overlapping subdivision's assessed valuation
within the City by the subdivision's total assessed valuation.
- S 27 -
2012 2013 2014 2015
*
Net Assessed Valuation $252,752,210 $255,107,890 $256,422,430 $254,163,855
Legal Debt Limitation (%) (1)
9.00% 9.00% 9.00% 9.00%
Legal Debt Limitation ($) (1)
22,747,699 22,959,710 23,078,019 22,874,747
Applicable District Debt Outstanding 15,061,386 14,522,171 13,902,047 13,170,033
Less: Applicable Debt Service Fund Amounts (2)
(1,103,745) (1,042,575) (1,049,893) (1,075,169)
Net Indebtedness Subject to Limitation 13,957,641 13,479,596 12,852,154 12,094,864
Overall Legal Debt Margin $8,790,058 $9,480,114 $10,225,865 $10,779,883
Legal Debt Limitation (%) (1)
0.10% 0.10% 0.10% 0.10%
Legal Debt Limitation ($) (1)
252,752 255,108 256,422 254,164
Applicable District Debt Outstanding 0 0 0 0
Unvoted Legal Debt Margin $252,752 $255,108 $256,422 $254,164
Legal Debt Limitation (%) (1)
0.90% 0.90% 0.90% 0.90%
Legal Debt Limitation ($) (1)
2,274,770 2,295,971 2,307,802 2,287,475
Applicable District Debt Outstanding 0 0 0 0
Unvoted Energy Conservation
Loans Legal Debt Margin $2,274,770 $2,295,971 $2,307,802 $2,287,475
*Restated for Deferred Charge on Refunding
(1) Ohio Bond Law sets a limit of 9% for overall debt, 1/10 of 1% for unvoted debt,
and 9/10 of 1% for energy conservation debt.
(2) Includes only Debt Service funds available on a modified GAAP basis
for general obligation bonded debt supported by property taxes.
Heath City School District
Debt Limitations
Last Ten Years
- S 28 -
2016 2017 2018 2019 2020 2021
$243,934,110 $248,262,876 $271,391,600 $277,895,103 $282,070,234 $307,972,610
9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
21,954,070 22,343,659 24,425,244 25,010,559 25,386,321 27,717,535
12,140,782 11,355,564 10,566,487 9,655,045 8,655,813 7,553,910
(1,242,170) (1,006,492) (1,399,129) (1,443,227) (1,684,827) (1,956,731)
10,898,612 10,349,072 9,167,358 8,211,818 6,970,986 5,597,179
$11,055,458 $11,994,587 $15,257,886 $16,798,741 $18,415,335 $22,120,356
0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
243,934 248,263 271,392 277,895 282,070 307,973
0 0 0 0 0 0
$243,934 $248,263 $271,392 $277,895 $282,070 $307,973
0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
2,195,407 2,234,366 2,442,524 2,501,056 2,538,632 2,771,753
0 0 0 0 0 0
$2,195,407 $2,234,366 $2,442,524 $2,501,056 $2,538,632 $2,771,753
Heath City School District
- S 29 -
Calendar Year 2011 2012 2013 2014 2015
Population (1)
City of Heath 10,310 10,310 10,310 10,310 10,310
Licking County 166,983 167,719 168,503 169,390 170,570
Income (2) (a)
Total Personal (in thousands) 386,532 388,470 396,822 410,699 428,700
Per Capita
37,491 37,679 38,489 39,835 41,581
Unemployment Rate (3)
Federal 8.9% 8.1% 7.4% 6.2% 5.3%
State 8.6% 7.2% 7.4% 5.7% 4.9%
Licking County 8.0% 6.5% 6.9% 5.1% 4.4%
Fiscal Year 2012 2013 2014 2015 2016
School Enrollment (4)
Grades K - 2 347 353 359 393 397
Grades 3 - 5 381 379 382 398 410
Grades 6 - 8 419 408 388 406 396
Grades 9 - 12 455 477 505 486 479
JVS 56 55 48 65 70
Total 1,658 1,672 1,682 1,748 1,752
Sources:
(1) US Bureau of Census of Population
(2) US Department of Commerce, Bureau of Economic Analysis
(a) Per Capita Income is only available by County, Total Personal Income is a calculation
(3) State Department of Labor Statistics
(4) District Treasurer's Office
Note: In FY 18, all years of School Enrollment were restated using ODE October headcounts.
Heath City School District
Demographic and Economic Statistics
Last Ten Years
- S 30 -
2016 2017 2018 2019 2020
10,310 10,310 10,310 10,310 10,412
172,198 173,448 175,769 177,174 178,100
435,257 455,826 474,868 489,704 529,034
42,217 44,212 46,059 47,498 50,810
4.9% 4.4% 3.9% 3.7% 8.1%
4.9% 5.0% 4.6% 4.1% 8.1%
4.3% 4.2% 4.0% 3.7% 6.5%
2017 2018 2019 2020 2021
376 382 394 404 402
418 403 385 397 390
385 405 421 423 419
489 497 408 408 465
56 65 77 79 57
1,724 1,752 1,685 1,711 1,733
Heath City School District
- S 31 -
Heath City School District
- S 32 -
Heath City School District
Principal Employers
Current Year and Nine Years Ago
Number of
Employer Nature of Business Employees Rank
Central Ohio Aerospace & Technology Center Manufacturing
943
1
Super Wal-Mart Stores Retail Sales
512
2
Lowe's Home Center Retail Sales
319
3
JLH Automotive Retail Sales
313
4
Heath City Schools Education
307
5
Kaiser Aluminum & Chemical Co Manufacturing
226
6
The Laurels of Heath Health Care
215
7
Englefield Oil Petroleum Products
202
8
Mathews Ford Retail Sales
144
9
City of Heath Government
107
10
Total 3,288
Number of
Employer Nature of Business Employees Rank
Central Ohio Aerospace & Technology Center Manufacturing
902
1
Super Wal-Mart Stores Retail Sales
433
2
Arvin/Meritor Manufacturing
379
3
Heath City Schools Education
295
4
Kaiser Aluminum & Chemical Co. Manufacturing
270
5
Heath Nursing Home Health Care
230
6
Lowe's Home Center Retail Sales
208
7
John Hinderer Honda Retail Sales
182
8
Englefield Oil Petroleum Products
149
9
JC Penney's Retail Sales
149
10
Total 3,197
Sources: City of Heath. Presented on a calendar year basis because
that is the manner in which the information is maintained by the City.
Information for total City employment is not available.
2020
2011
- S 33 -
2012 2013 2014 2015 2016
Supervisory
Instructional Administrators 2.00 2.00 2.00 2.00 2.00
Noninstructional Administrators 1.00 1.00 1.00 6.00 6.00
Principals 4.00 4.00 4.00 4.00 4.00
Assistant Principals 1.00 1.00 2.00 1.00 1.00
Instruction
Classroom Teachers 102.00 100.00 104.00 97.50 94.50
Student Services
Guidance Counselors 2.50 1.00 1.00 1.00 1.00
Psychologists and Health Staff 1.00 1.00 1.00 2.00 2.00
Librarians 2.00 1.00 1.00 1.00 1.00
Support Services
Clerical/Bookkeeping 11.00 11.00 11.00 11.00 10.00
Tutors/Aides 2.00 1.00 1.00 14.00 14.50
Food Service 18.00 18.00 18.00 11.00 11.00
Maintenance/Grounds 9.00 9.00 9.00 9.00 9.00
Transportation 12.00 12.00 12.00 13.00 11.00
Total Employees 167.50 162.00 167.00 172.50 167.00
Method: The District began using EMIS staffing submissions as its source data in FY 18, and as such,
restated the statistics from FY 15 through FY 18 using available historical data. Staffing counts reflect
current positions at the time of submission of the final CK staff employment record for the fiscal year.
In addition, the figures represent only regular positions and exclude temporary or supplemental positions.
FTEs are defined as the District's definition of a full-time equivalent for that particular position. For example,
some positions are considered to be full-time at 6 hours per day (ex. Cooks), while others might be
7.25 hours per day (ex. Teachers). Staffing figures exclude any positions with less than 3 hours per day.
Source: District Treasurer's Office
Heath City School District
School District Employees by Type
Last Ten Years
- S 34 -
2017 2018 2019 2020 2021
2.00 2.00 2.00 2.00 2.00
6.00 6.00 7.00 7.00 6.00
3.00 4.00 4.00 4.00 4.00
1.00 1.00 2.00 2.00 2.00
89.75 96.25 100.50 103.60 101.12
1.00 1.00 1.00 2.00 2.00
2.00 6.00 6.00 6.00 4.50
1.00 1.00 1.00 1.00 1.00
11.50 12.00 11.00 11.00 11.00
12.00 10.00 9.50 10.40 11.00
9.00 10.00 9.50 8.00 11.50
9.00 9.00 9.50 8.50 7.00
13.00 12.00 10.00 12.00 9.00
160.25 170.25 173.00 177.50 172.12
Heath City School District
- S 35 -
Fiscal Year 2012 2013 2014 2015
Enrollment 1,658 1,672 1,682 1,748
Modified Accrual Basis
Operating Expenditures 17,436,731 17,694,748 17,414,789 18,352,229
Cost per Pupil 10,517 10,583 10,354 10,499
Percentage of Change 3.4% 0.6% (2.2%) 1.4%
Accrual Basis (1)
Expenses 16,713,393 16,839,524 16,585,008 17,415,686
Cost per Pupil 10,080 10,071 9,860 9,963
Percentage of Change 1.93% (0.09%) (2.10%) 1.04%
Teaching Staff 93 94 100 97.50
(1) Expenses exclude interest and fiscal charges
Source: District Treasurer's Office and Ohio Department of Education
Note: In FY 18, all years of Enrollment were restated using ODE October headcounts.
Heath City School District
Operating Indicators - Cost per Pupil
Last Ten Years
- S 36 -
2016 2017 2018 2019 2020 2021
1,752 1,724 1,752 1,685 1,711 1,733
19,807,688 20,248,950 20,079,126 22,017,073 22,590,281 24,209,537
11,306 11,745 11,461 13,067 13,203 13,970
7.7% 3.9% (2.4%) 14.0% 1.0% 5.8%
18,853,713 19,635,128 12,122,616 19,172,413 22,632,001 24,235,017
10,761 11,389 6,919 11,378 13,227 13,984
8.01% 5.84% (39.25%) 64.44% 16.25% 5.72%
94.50 89.75 96.25 100.50 103.60 101.12
Heath City School District
- S 37 -
2012 2013 2014 2015
Governmental Activities
Pupils
Enrollment 1,597 1,614 1,641 1,735
Graduates 116 112 117 133
Percent of Students with Disabilities 7.0% 7.1% 7.2% 7.2%
Board of Education
Regularly scheduled board meetings per year 12 12 12 12
Administration
School Attendance Rate 96.40% 96.20% 96.80% 96.70%
Fiscal Services
Purchase Orders Processed 2,116 2,355 2,367 2,241
Checks Issued (non payroll) 2,242 2,385 2,288 2,318
Operation and Maintenance of Plant
District Square Footage Maintained 291,068 291,068 291,068 291,068
District Square Miles Maintained 11.2 11.2 11.2 11.2
Pupil Transportation
Average Daily Students Transported 1,162 1,169 1,181 1,188
Average Daily Bus Fleet Miles 901 899 900 901
Number of Buses 16 16 16 16
Operation of Noninstructional Services
Food Service Operations
Students Lunches Served Annually 145,932 142,972 141,109 140,972
Percent of Free/Reduced Price Meals (1)
46% 47% 47% 48%
Extracurricular Activities
High School Varsity Teams 17 17 17 17
Source: District Treasurer's Office
(1) Food Service operation statistics began using the point of sale system reports in FY 2018
and restated statistics for FY 2017 for comparison purposes.
and restated statistics for FY 2017 for comparison purposes. FY 2020 reflects that in person
classes were not conducted due to state mandated closures due to COVID-19. Free lunches were
delivered and available from March through June 2020.
Heath City School District
Operating Indicators by Function
Last Ten Years
- S 38 -
2016 2017 2018 2019 2020 2021
1,718 1,712 1,752 1,685 1,711 1,733
137 108 106 115 131 145
7.2% 11.5% 13.8% 12.2% 15.0% 15.0%
12 12 12 12 12 12
96.80% 94.90% 94.00% 94.30% 95.30% 90.60%
2,287 2,416 2,420 1,940 1,655 1,768
2,302 2,249 2,114 2,443 1,918 2,371
291,068 291,068 291,068 291,068 291,068 291,068
11.2 11.2 11.2 11.2 11.2 11.2
1,188 885 886 845 848 621
901 581 533 534 547 488
16 17 16 15 15 14
141,172 134,229 134,746 140,613 126,854 124,930
49% 63% 57% 55% 60% 36%
17 21 22 23 23 24
Heath City School District
- S 39 -
Fiscal Year 2012 2013 2014 2015 2016
Minimum Salary 33,286 33,286 34,118 34,800 35,148
Maximum Salary 71,565 71,565 73,354 74,820 75,568
District Average Salary 54,334 54,057 52,671 51,776 52,446
State Average Salary (1)
56,715 56,307 55,913 55,242 57,154
Source: District Treasurer's Office and Ohio Department of Education
Fiscal Year 2012 2013 2014 2015 2016
Bachelor's Degree 6 6 27 26 23
Bachelor + 15 (1)
9 9 0 0 0
Master's Degree 57 56 64 67 72
Master's Degree + 15 (1)
9 9 0 0 0
Master's Degree + 30 12 12 9 9 9
Total 93 92 100 102 104
Source: District Treasurer's Office
(1) In 2014, the Bachelor's + 15 and Master's + 15 were removed per negotiations.
(2) Ohio Department of Education
Note: Teachers by Education counts are headcounts, while staffing levels are FTEs.
Furthermore, this schedule reflects all staff paid on the teaching salary schedules,
which includes some individuals with differing functional titles (ex. Guidance)
N/A means not available at the time this report was prepared
Last Ten Years
Heath City School District
Operating Indicators - Teacher Base Salaries
Last Ten Years
Operating Indicators - Teacher by Education
- S 40 -
2017 2018 2019 2020 2021
35,148 35,851 36,568 37,299 38,045
77,326 78,872 80,450 82,058 83,699
52,535 55,769 53,490 60,284 57,602
58,849 58,186 60,399 65,754 N\A
2017 2018 2019 2020 2021
34 30 33 32 30
0 0 0 0 0
57 59 61 64 70
0 0 0 0 0
9 12 10 10 12
100 101 104 106 112
Heath City School District
- S 41 -
2012 2013 2014 2015
Secondary
Heath High School
Square Footage 124,740 124,740 124,740 124,740
Capacity (students) 600 600 600 600
Enrollment 511 532 553 551
Middle
Heath Middle School
Square Footage 67,197 67,197 67,197 67,197
Capacity (students) 450 450 450 450
Enrollment 419 408 388 406
Elementary
Stevenson Elementary School
Square Footage 44,437 44,437 44,437 44,437
Capacity (students) 450 450 450 450
Enrollment 381 379 382 398
Garfield Elementary School
Square Footage 44,112 44,112 44,112 44,112
Capacity (students) 450 450 450 450
Enrollment 347 353 359 393
All Other
Central Administration Building
Square Footage 2,400 2,400 2,400 2,400
Capacity 14 14 14 14
Staff 13 13 12 13
Bus Garage
Square Footage 10,800 10,800 10,800 10,800
Capacity (Buses) 16 16 16 16
Source: District Treasurer's Office
Note: In FY 18, all years of School Enrollment were restated using ODE October headcounts.
Heath City School District
Capital Asset Statistics by Building
Last Ten Years
- S 42 -
2016 2017 2018 2019 2020 2021
124,740 124,700 124,700 124,700 124,700 124,700
600 600 600 600 600 600
549 545 562 485 487 522
67,197 67,197 67,197 67,197 67,197 67,197
450 450 450 450 450 450
396 385 405 421 423 419
44,437 44,437 44,437 44,437 44,437 44,437
450 450 450 450 450 450
410 418 403 385 397 390
44,112 44,112 44,112 44,112 44,112 44,112
450 450 450 450 450 450
397 376 382 394 404 402
2,400 2,400 2,400 2,400 2,400 2,400
14 14 14 14 14 14
13 13 13 13 13 12
10,800 10,800 10,800 10,800 10,800 10,800
16 17 16 15 15 14
Heath City School District
- S 43 -
2012 2013 2014 2015 2016
ACT Scores (Average)
Heath 21.8 21.7 21.8 21.9 21.9
Ohio 21.6 21.7 21.7 21.7 21.7
National 21.3 21.3 21.4 21.4 21.4
Cost per Student (ODE)
Heath 9,136 10,961 8,603 8,225 8,978
Ohio (Average) (1)
10,508 10,149 9,536 9,904 9,837
Attendance Rate
Heath 95.60% 94.80% 96.70% 94.90% 94.90%
Ohio (Average) 94.50% 94.20% 94.30% 94.10% 94.10%
Graduation Rate (2)
Heath 93.80% 93.30% 91.70% 96.90% 92.40%
Ohio (Average) 81.30% 82.20% 82.30% 83.00% 83.50%
Source:
District's Student Records and Ohio Department of Education
(1) ODE calculation is not based on GAAP financial reports. Beginning in 2014, Cost per Student is
based on Equivalent Pupil.
(2) The 2021 figures were not yet available.
(a) Beginning with FY12, the Graduation rates from ODE are calculated using a method required by federal law
that tracks students when they transfer from school to school- Longitudinal Graduation 4 Year Rate.
N/A - Not Available
Heath City School District
Educational and Operating Statistics
Last Ten Years
- S 44 -
` ` ` `
2017 2018 2019 2020 2021
21.3 18.3 18.5 19.1 18.2
22.0 20.3 20.0 19.2 18.9
21.0 20.8 20.7 20.6 20.3
9,480 8,335 8,914 8,654 9,372
10,445 9,353 9,724 9,883 10,336
94.90% 94.00% 94.30% 95.30% 90.60%
93.90% 93.70% 93.50% N/A N/A
92.80% 90.80% 93.30% 94.80% 94.80%
84.10% 85.30% 85.90% 87.20% 87.20%
Heath City School District
- S 45 -
Heath City School District
- S 46 -
