In Kettering, February Tax Collection For Kettering Schools Exceeds Budget Prediction — By $1 Million

According to the memorandum (shown below) prepared by Kettering Schools’ Treasurer, Steve Clark, because property tax revenues and personal property taxes, so far this year, have been higher than predicted, the amount of tax collected in February for Kettering Schools is $1 million more than Mr. Clark originally predicted.

Mr. Clark, in his memo, warns that it may be April before Kettering Schools will know for certain the total amount of tax collected. Below is his memo and a truncated version of his financial report. (Here is a PDF of the full report.)

Kettering City School District

Memorandum

To:       Kettering City Board of Education Members, Superintendent, Directors, Principals, Supervisors, Administrators, Mike Bock
From:  Steve Clark, Treasurer/CFO

Date:    March 4, 2010
Re:        February, 2010 Financial Information (fiscal year 2010)

Enclosed is the fiscal year 2010 monthly spending plan report that compares projected and actual fiscal year-to-date general fund revenues, expenditures and unencumbered balances, through February, 2010, based on the five-year forecast (Revision 1007).

Year-To-Date (Y-T-D) real estate taxes were 3.0% ($1.2 million,) higher than anticipated through February.  However, don’t start spending the money; we haven’t received our February settlement yet. Last year the settlement was in April and the final general fund amount was $5.4 million. We still need to receive $4.1 million to meet the estimate for the year.  Since we only receive 90% of tax revenue collected from an advance, I estimate the County Treasurer has at least $2.4 million to distribute to us.

School foundation (state funding) was $365,000 (5%) higher than forecast.  It’s my understanding that when the Department of Education began paying school districts under the new funding formula in October, they actually paid a little more than was due at that time.  As the year progresses, that surplus should decline.  Last month we were 6% over the estimate so that seems to be the case.  The tangible personal property tax reimbursement remained over projections through February ($279,000 or 4%).

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