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Kenston treasurer: five-year forecast shows short-term surplus, deficits start in 2027; levy timing highlighted
Summary
Treasurer Seth Kales presented the district's five-year forecast, reporting a modest surplus through 2026 after which projected deficit spending begins in 2027; officials said a PI levy reduced pressure on the general fund and identified 2028'29 as the window to plan for any operating levy.
Kenston Local School District Treasurer Seth Kales delivered the district's five-year financial forecast during the Oct. 13 meeting, telling the board the district expects a small surplus in fiscal 2026 before resuming deficit spending in 2027 and beyond and recommending early planning for any operating levy.
Kales said last year's operations produced a $705,000 surplus and the forecast projects a $346,000 surplus for the current fiscal year, which together add roughly $1 million to the district's cash balance. He estimated the district's projected ending general-fund cash balance for June 30, 2026, at about $9.39 million. "We were deficit spending for a couple of years, and last year we had a surplus of $705,000," Kales said. "This year we anticipate about $346,000 in total surplus."
Why it matters: Kales and board members framed the forecast as a planning tool. He said local property taxes supply roughly 75% of general-fund revenue and that wider state policy or reappraisal actions can materially alter projections. He also credited voters for approving a five-year PI (permanent improvement) levy that he said relieved the general fund by funding capital projects outside the general fund.
Key figures and assumptions Kales reported include: - Per-pupil general-fund expenditure of about $18,459 (roughly $103 per day based on 180 days). - A built-in benefits increase assumption of about 8% per year from 2027 to 2030, reflecting the district's self-insured status. - PI levy revenue: roughly $1.2 million per year over five years; the district transferred historic amounts (about $1.5 million in 2024 and about $800,000 in 2025) into the PI fund as part of the plan.
Board action: The board approved the five-year forecast by roll call during the meeting. The motion was moved and seconded and recorded by roll call with unanimous "yes" votes from the five members present.
Steps to manage the outlook: Kales said the district is monitoring enrollment trends and the potential development at the Geauga Lake property (apartment units underway) that could moderate enrollment declines. He recommended continued attention to staffing aligned with enrollment, close management of third-party purchase services (special education placements and contracts), pursuing available grants and periodic analysis of whether services can be brought in-house.
Kales also flagged proposed state-level bills that could affect the district, including measures to change property-tax procedures and county budget commission authority; he urged the board to monitor legislation because changes could curtail levy collections or shift revenue authority.
Ending: Board members thanked Kales for the presentation. The forecast was approved by roll call; Kales said he would continue to provide updates and that the district will use the PI levy to fund visible capital projects already planned.
