During the August 11, 2026, meeting of the Board of Education, it was my privilege to present Indian Hill’s five-year financial forecast. This powerful tool gives our Board of Education, our leadership team, and our community a forward-looking picture of the district’s finances so we can make thoughtful decisions before financial challenges become financial emergencies. Our most recent forecast contains both reassuring news and an important warning.

We completed Fiscal Year 2026 with results consistent with our previous projections. At the same time, the longer-term outlook remains challenging. Under the assumptions currently built into the forecast, recurring expenditures are expected to exceed recurring revenues in each year from FY27 through FY31. Importantly, the forecast does not assume any new operating revenue during that period. That distinction matters.

Indian Hill currently has cash reserves, and those reserves provide us with time to plan. But reserves are not recurring revenue. They can help bridge a financial gap for a period of time; they cannot permanently solve a structural imbalance between what comes in each year and what goes out. Our current forecast illustrates that clearly.

Projected days of cash on hand decline from 99 days in FY26 to 77 in FY27, 59 in FY28, 42 in FY29, 20 in FY30 and just four days in FY31. For a school district, declining reserves have implications beyond a number on a spreadsheet. They reduce financial flexibility, increase cash-flow risk, and can ultimately affect how outside organizations, including rating agencies, view the district’s fiscal health. That is why our work now matters so much.

A complicated property-tax environment

Understanding Indian Hill’s comprehensive financial outlook also requires understanding the way Ohio funds public schools.

As we shared in the February 2026 forecast, several primary factors have influenced our projected outlook – namely House Bill 186 and its impact on the 20-mill floor. House Bill 186 is enacted state legislation and introduces budgetary constraints that significantly impact our district’s projected cash balance. The new law caps revenue growth for 20-mill floor districts at the cumulative three-year rate of inflation following property reappraisals or updates. Currently, the Indian Hill School District sees increased income with increased property value, because we operate within the 20-mill floor. The new law slows the rate at which the district receives this additional revenue and includes an “Inflation Cap Credit” for property owners in districts like Indian Hill.

Now, that already complicated system is changing again, with state policy changes designed to limit certain property-tax revenue growth to inflation. At the same time, broader conversations about property-tax reform continue across Ohio. For school districts, these discussions create significant uncertainty around future revenue. For taxpayers, they reflect a very real concern about affordability.

Those two realities are not mutually exclusive. We should be able to acknowledge the strain rising property taxes can place on homeowners while also recognizing that local property taxes remain a critical source of funding for public schools and many other community services. Our responsibility is to plan prudently within the system that exists while carefully monitoring changes to that system.

Managing what we can control: Fiscal responsibility in action

Financial stewardship is not simply about revenue. It is also about disciplined expenditure management. Indian Hill continues to maximize taxpayer value while investing in world-class opportunities for students. We have captured more than $9.4 million in measurable taxpayer value, including:
•    $8.5 million in taxpayer savings through bond refinancing.
•    More than $588,000 secured through grants, partnerships, external funding, and operational safety grants.
•    $150,000+ generated annually through energy savings initiatives.
•    $430,000 in annual administrative savings through operational efficiencies.

We will continue monitoring staffing, benefits and purchased services; reviewing enrollment and staffing patterns for alignment; tracking medical insurance costs; evaluating the timing of capital needs; and comparing actual FY27 expenditures against our forecast assumptions.

These are important steps, and responsible cost management must remain part of our strategy.

But there is also an important mathematical reality we must acknowledge: when recurring expenditures consistently exceed recurring revenues, cost controls alone may not be enough to close the gap without eventually affecting programs, staffing or the educational experience we provide students.

That is why the Board will also need to evaluate sustainable revenue options and the appropriate timing for future conversations with the community. This is not a decision that should be made hastily. Nor should it be delayed until our financial flexibility has disappeared.

The expiration of the current expense levy at the end of 2026, future legislative developments, changing expenditure trends and the district’s declining projected cash position all make the next several years an important planning window.

Protecting what matters most

A five-year forecast is not simply a finance department planning tool; ultimately, fiscal stability is connected directly to our classrooms. It helps determine our ability to attract and retain exceptional educators, sustain high-quality academic and extracurricular opportunities, maintain our facilities and continue delivering the educational experience our community expects for Indian Hill students. That is why transparency is so important.

Our community deserves to understand not only where the district stands today, but where current trends could take us tomorrow. It also deserves time to understand the choices ahead and participate thoughtfully in those conversations. The forecast tells us that action and planning are necessary to avoid a financial emergency.

We have an opportunity now — while the district still has reserves and time — to make thoughtful decisions from a position of strength rather than waiting until circumstances dictate our choices.

As Treasurer/CFO, I will continue to provide the Board and our community with clear financial information, regularly update our assumptions as conditions change and help ensure that every decision reflects both fiscal responsibility and our commitment to students.

Indian Hill has long benefited from a community that values excellence and expects careful stewardship of its resources. Maintaining both will require the same qualities that have served this District well for years: transparency, discipline, thoughtful planning and a willingness to look beyond today. Our goal is straightforward: to preserve the strong financial foundation necessary to protect the exceptional educational experience our students deserve — not only this year, but for years to come.

IH IR: Connecting with our investors, our taxpayers

Finally, I want to hear from you. In partnership with Indian Hill Superintendent Dr. Melissa Stewart, I plan to launch a new series called Indian Hill Investor Relations, or simply “IH IR” to answer your questions about our district finances in a livestream event. Please email your questions to ihsdcommunication@ihsd.us. We will share the livestream time and date where you can get answers soon.

This is one more way we are striving to deliver factual, transparent communications about our district finances. I look forward to hearing from you.
   
Dedicated to the success of our Braves,

Mick Davis
Treasurer/CFO
Indian Hill School District

Photo caption: Indian Hill School District Treasurer/CFO Mick Davis presented the district’s five-year financial forecast during the August 11, 2026, Board of Education meeting.