Forecast shows stable finances, board discusses out-of-district extracurriculars

by Laura Bednar

Aug. 26 board of education meeting

Treasurer Kyle Kiffer presented his semiannual five-year forecast of the Nordonia Hills City Schools’ financial health.

General fund revenue is projected to be $65.7 million in 2027 with almost 70% coming from property taxes. Revenue is projected to rise to $66.6 million by 2030.

The district’s effective millage rate will decrease by 4 mills after the 2026 Summit County property reappraisal, according to Kiffer.

This is due to Ohio House Bill 920, which prevents an approved levy from collecting additional funds when property values increase.

Another factor affecting revenue growth is the GDP deflator, which caps growth on inside, or unvoted, millage. According to ohioschoolboards.org, “The inflationary cap will be applied every three years when the county goes through a reappraisal or a triennial update.”

Kiffer said this deflator will decrease the district’s inside millage from 4.97 mills to 4.71 mills and he projects it will stay there.

Nordonia will receive around $5.8 million from the state every year of the forecast through 2031. Kiffer projects the district will deficit spend only in 2030. The district’s daily cost per pupil will be $117 in 2027.

Expenditures are projected to be $61 million in 2027 and rise to $68.6 million in 2030. Salaries and wages account for 52% of expenses and are projected to increase by 3.4% annually through 2031. Employee benefits account for 22.34% of expenses and are projected to increase by 5.1% annually through 2031.

“The projected annual increase in health insurance costs is 7.5%,” said Kiffer.

There will be an increase in capital outlay costs for future roof repairs. Kiffer said the district has a depleted permanent improvement fund because the MGM Casino tax settlement payments have concluded. Money for future facility improvements will have to come from the general fund, according to Kiffer.

His key takeaways were to continue monitoring property tax reforms and other legislative activity; evaluate staffing levels, enrollment, class sizes and student needs; give attention to health insurance and benefit costs; and anticipate increased capital needs.

Extracurriculars

School board members discussed a regulation from the state legislature that allows students to participate in extracurriculars in other districts if their school does not offer them.

Matt Ford said he was concerned that if other students came to play a sport at Nordonia, the district would absorb the cost of an increased roster and required staffing.

Sandra Caramela-Miller said she was also concerned that out-of-district students may get playing time over Nordonia students if they have greater ability.

Board president Liz McKinley agreed, saying Nordonia students should not lose out in their home district. “We are not open enrollment in academics. I don’t see why athletics should have a different policy,” she said.

Ford said it should be taken on a case-by-case basis and not a blanket policy.

Jason Tidmore said he was comforted by the fact that the legislation says the two superintendents affected could agree on an arrangement that accommodates both districts.