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Chagrin Falls treasurer warns of multi-year deficit; district could need levies or cuts
Summary
Treasurer presented a September financial report showing a $23.7 million general fund balance and a multi-year decline that will require either new levies or expenditure cuts if current trends continue, citing House Bill 920 and heavy reliance on property taxes.
The Chagrin Falls Exempted Village School District treasurer told the Board of Education on Oct. 15 that the district is beginning to spend down a $23,700,000 general fund balance and faces a multi-year deficit unless revenue increases or expenditures fall.
“Ending balance at the September in the general fund is $23,700,000,” the treasurer said while walking the board through September highlights and a multi-year cash-forecast model. The report showed that the district’s revenues are roughly 74–78% dependent on local property taxes and that effective millage is constrained by House Bill 920, which keeps effective mills from rising automatically with property-value increases.
The treasurer explained how the state’s reporting and forecast timelines have changed, noting that the official submission horizon moved from five to four years and that the district will still model five years internally for planning. He also described a large, one-time set of transfers in 2025 that moved money from the general fund into capital-project and permanent-improvement funds to avoid county cash-balance concerns; those transfers temporarily increased expenditures in the 2025 column of the forecast.
On the revenue side, the treasurer said the district expects modest growth from inside millage and new construction but warned that enrollment declines and state funding uncertainty make long-term estimates fragile. He said investment income rose in earlier years when interest rates were higher but will fall as the district spends down cash balances.
On the expenditure side, the treasurer said personnel costs account for about 79% of district spending and that health-care and retirement costs are expected to rise. “So the only way to correct this is either increase revenue or decrease expenses,” he said, adding the practical options are passing a levy or making cuts.
Board members asked for clarification about Ohio’s property-tax rankings and state tax-burden statistics; the treasurer said he would verify the exact numbers and source documents. The board later approved the financial forecast and monthly reports as part of the treasurer recommendations.
Next procedural steps announced during the meeting included approving the forecast as presented and bringing regular financial updates to the board; the treasurer said any material change to the district’s assumptions would prompt a resubmission to the state template.
