Grandview Heights Schools: Five-Year Financial Forecast Update

On October 9, 2024, the Grandview Heights Schools Board of Education approved the district’s five-year financial forecast, showing a stable financial outlook for the future due in large part to a strong local tax base.  Local funding, which includes Grandview Yard revenue and property taxes from residents and businesses, accounts for 88% of the district’s operating budget.  

Tax revenue projections reflect little growth over the next several years due to House Bill 920, an Ohio law that safeguards property owners by limiting inflationary growth on voted property tax levies.  This means, as the values of residential and commercial property increase over time with each reappraisal, tax rates are reduced so the overall tax paid by property owners to the school district remains about the same.  

Over fiscal years 2028 and 2029, the district’s tax revenue is expected to increase due to the planned construction of a new electricity substation on West Fifth Avenue in Marble Cliff.  Unlike residential and commercial property, public utility property gradually depreciates in value over time, meaning the expected tax revenue will also gradually decrease following the initial investment.

Grandview Yard continues to be a strong source of local revenue steadily increasing each year as growth and development continue.  This revenue growth has been critical in helping the district keep up with inflationary increases in expenses, growth the district does not realize on property tax revenue due to House Bill 920. 

Grandview Heights Schools has also benefited financially by leveraging higher interest rates to  strategically invest funds not needed for immediate cash flow needs.  Investment income exceeded $700,000 for the 2023-2024 year, significantly surpassing initial estimates.  With interest rates now expected to decline, a decrease in revenue is expected for 2024-2025; however, investment income remains a strong overall source of local funding.

These strong performances of local revenue are great news considering our district receives very little funding from the state. We are extremely appreciative to our community for its continued support of our schools. It is this support that allows Grandview Heights Schools to provide the high-quality education that our community expects and our students deserve.

Lastly, the forecast highlights the Board of Education’s continued commitment to the community, setting aside funds from the Grandview Yard each year to lower the 2018 bond levy millage collected from taxpayers.  The district earmarked $1,058,906 from its 2024-2025 budget for this purpose and the forecast reflects our ongoing commitment to the community.

Grandview Heights Schools appreciates and values the continued support of the community as we remain focused on our mission to maximize and personalize every student’s learning, while continuing to be good stewards of the tax dollars that you, our taxpayers, so generously provide.