Indian Hill board warned of tighter finances as state tax changes shrink projected revenue

Mick Davis, the district treasurer, told the Indian Hill Exempted Village Board that a cluster of recent state policy changes has materially reduced the district’s projected revenue and could create cash‑flow risk over the next five years. "I think this will probably be one of my most impactful five year forecasts that I'm ever gonna have here at Indian Hill," he said during his presentation.

Davis outlined three primary drivers of the revenue gap: changes tied to long‑standing House Bill 920 accounting rules and the district’s 20‑mill floor; proposed caps on inside millage discussed in bills the board cited (including references in the presentation to House Bill 186 and House Bill 335); and a new reappraisal scheduling approach from the Ohio Department of Taxation. Together, he said, those factors produce a significant delta between the October projection and the current forecast.

Why it matters: Davis projected that days of cash on hand measured as of June 30 would fall from about 49 days under earlier assumptions to roughly 31 days by 2030 under current law and reappraisal timing, a decline he called a constraint on the district’s flexibility for unexpected capital or operating needs. "As we get lower on days of cash on hand, we have cash flow risks," he said, noting rating‑agency impacts and the district’s limited ability to absorb shocks such as bus replacements or major building repairs.

Board reaction and next steps: Board members pressed Davis on what the decline would mean in practice and on options for mitigating the risk. The board discussed delaying levy timing, constraining expenditure growth and expanding committee review of programs and capital priorities. The board ultimately approved the February five‑year forecast as presented and directed further committee work to re‑examine expenditures and examine levy timing.

Details cited in the presentation: Davis said the district received unusual new construction value this year — about $38,000,000 in residential construction — that temporarily boosted revenues but is not a sustainable offset to the projected longer‑term decline. He also flagged a risk scenario outside current forecasting assumptions: organized efforts to abolish property taxes, which he said would eliminate roughly 85–90% of the district’s revenue and “could not be replaced by the state of Ohio in any meaningful way.”

Other budget items discussed: Davis reviewed several spending pressures that will affect forecasts, including transportation costs and a recent 15% increase the district absorbed for health‑insurance costs. He noted that new school buses approved by the board are priced at about $170,360 each, compared with roughly $106,000 about five years ago, and he emphasized that capital and operating costs continue to rise with inflation.

What happens next: The board said it will continue committee work to identify possible expenditure reductions, to plan levy timing with the aim of preserving program quality, and to expand public outreach so residents understand how property taxes fund local services. The board also scheduled more focused committee review of capital and enrollment pressures in the coming months.