District treasurer projects multi-year surplus then gradual decline; warns on state property-tax proposals

Centerville City School District Treasurer (Miss Aldrick) told the board the district closed fiscal year 2025 with a $7.6 million surplus and presented a multi-year forecast that assumes a 0% base salary increase for 2025–26, staff reductions carried into the new year, the full phase-in of a recently passed levy and a projected property reappraisal increase assumed at 15% for the next reappraisal cycle.

The treasurer said the district's FY2026 forecast factors in categorical increases in transportation funding and a temporary performance guarantee payment tied to the district's five‑star rating, which together accounted for revenue increases. She said state funding in the forecast is a simulation because ODEW has not yet released updated funding numbers reflecting changes in the formula; the district expects to see updated state numbers in October and must submit its financial forecast to the state by Oct. 15 for this filing cycle.

The treasurer emphasized the district negotiated a multi‑year contract with certificated and classified staff and included those increases in the projections. On expenses, she noted step and lane increases, anticipated modest health insurance increases and relatively stable department budgets. She also explained Centerville uses its permanent improvement fund for major maintenance and bus purchases, which increases the personnel-cost percentage when compared with districts that purchase buses from their general funds.

The forecast assumes the recent levy will carry the district through a multi‑year period and that the district has built substantial cash reserves, but the treasurer warned trustees of state-level proposals that could limit levy placement options or change the property-tax system. She said the board's $9.5 million emergency levy that was renewed in 2022 could face limits on being placed on a future ballot if certain legislative measures pass, changing how districts collect or structure property-tax levies. The treasurer and board members called this an open policy issue without a definitive replacement revenue source from the state at this time.

Board members asked clarifying questions about what portion of local revenue the levy and local income tax contribute to the district budget and about the state timeline changes for financial forecast submissions.