ASHLAND – The financial future for Ashland City Schools is bright, according to the latest five-year forecast approved by the Ashland City Schools Board Monday night at its monthly meeting.
Treasurer Sue Guthrie’s forecast predicted Ashland will have more than $19 million in the bank by the end of fiscal year 2022.
According to the forecast, the district is expected to have money left over each fiscal year covered in the report: $996,119 for fiscal year 2018, $818,071 for 2019, $1,548,124 in 2020, $2,025,170 in 2021 and $2,159,686 in 2022.
The forecast predicts Ashland to have a cash balance of $13,045,402 in 2018, $13,863,473 in 2019, $15,411,597 in 2020, $17,437,767 in 2021 and $19,596,453 in 2022.
When presenting the new forecast, Guthrie said the biggest change since the last forecast in May involved planned capital outlays for several building projects the board has been discussing, including upgrades at Taft Intermediate and Edison Elementary.
Board member Bryan Lefelhoc, who serves on the finance committee, pointed out that the forecast accounts for moderate increases for both employee benefits and personnel services.
“I feel like we are being aggressive on revenue and we are being conservative on expenditures,” Lefelhoc said.
Lefelhoc said he has trouble trusting the five-year forecast but he does trust the work Guthrie put into developing the forecast.
“The anticipation is that these revenues are going to be there and the anticipation is that these expenses will not and I want to see that actually play out over the near future, the next few months,” Lefelhoc said.
Board member Rick Ewing warned against expecting that full $19 million to be in the bank five years from now. He pointed out that less than two years ago, the five-year forecast was calling for a $0 cash balance.
Guthrie said that lower utility costs and fuel prices have played a role in the district’s improved financial status.
“Obviously we’re all confident with the forecast or we wouldn’t be presenting it and considering it. The numbers are striking. The numbers are not of concern, because they’re very good numbers, but I just want us to understand that, just like it swung in the last two years, it can swing again,” Ewing said.
Wolfe also doubts the full $19 million will actually be in the bank in five years as forecast, but he believes that the current board and administration has made some positive changes that have put them in the current financial situation.
“The key change came when we decided six years ago that we were no longer going to spend more than we took in,” Wolfe said. “It isn’t an accident that we’re in this position. It is from that careful oversight at the board level and having the right management team in, in administrators and principals and even employees that buy in that we’re in this together.”
“Either way, we can’t help but be satisfied that we’ve figured out a mechanism to work proactively to stay within our budget. And as long as we do that, I think we can look the community in the face and say we’re doing what we need to do to keep from having to raise your taxes,” Wolfe said. “At least for once the school is not going to be the one that taxes your wallet, and we can be proud of that, too.”
Lefelhoc agreed with Wolfe’s reasoning for the district’s turnaround.
“I’ve been on this side of the table when it wasn’t so good and we had to lose positions and community members that were no longer employed here, and that’s not fun. But those decisions that we had to make are helping that quick turnaround and perhaps exponential growth if everything plays out as we hope,” Lefelhoc said. “That’s how easy everything can change. If you take care of today, tomorrow becomes a lot easier.”
Wolfe urged the district to consider spending some of its possible excess revenue on paying off its debt earlier.
“The community did pass bond issues to build new buildings and we’ve come in under budget and it might behoove us to pay that down quicker so they don’t have to pay the entire 33 years,” Wolfe said.
The treasurer said the board can revisit the issue after the plans are more set for the upcoming building projects.
During the Superintendent’s Report, Dr. Doug Marrah updated the board on the draft plans for construction work next summer at Taft and Edison. The plans call for making one bathroom at Edison and two at Taft Americans With Disabilities Act compliant, updating security at both schools and installing air conditioning at Taft.
Marrah said the security at the two schools will mirror what has already been established in other buildings, with all foot traffic directed to the front office with magnetically locked doors.
The superintendent said plans are also in the works to make Community Stadium ADA compliant and to build a field house near the stadium.
Ewing said the next step is to request proposals for these projects and to complete a master plan for addressing any stadium improvements or changes.
