What are Revenue Drivers and How Do They Impact the “Other” Local Funding Sources at West Clermont?

Revenue drivers are the key factors that influence or determine the amount of revenue generated from a particular source. In school district finance, revenue drivers are the variables that affect how much funding a district receives from each revenue source. Understanding revenue drivers is important for forecasting future revenues and making financial plans.
For the "other" local funding sources available to West Clermont School District, the revenue drivers are as follows:

1. Tuition: The number of students attending West Clermont schools from outside the district and the tuition rates charged. If more students opt to pay tuition to attend West Clermont, this revenue will increase. Tuition is expected to increase slightly each year at West Clermont, likely based on a small projected increase in the number of tuition-paying students and/or tuition rates.
2. Interest: The district's cash balances and prevailing interest rates. When the district has more money invested and/or interest rates rise, interest earnings will increase. Interest revenue fluctuates with projected interest rates, declining after a peak in FY24 as rates are expected to fall.
3. Payment In Lieu of Taxes (PILOT): Agreements with local businesses or housing developments that receive tax exemptions. The payments are negotiated and can change over time based on the agreements. New PILOT agreements or changes to existing ones will affect this revenue. PILOTs are forecast to remain flat, indicating no expected changes to the agreements.
4. Rentals and Miscellaneous Receipts: The amount of district facilities rented out to community groups and the rental rates charged. If the district rents out more space or increases rental rates, this revenue will grow. Rentals are not broken out specifically but may be included in the miscellaneous receipts, which are projected to grow slowly. Various small revenue sources such as fees, donations, and sale of assets make up the miscellaneous category. These are less predictable and can fluctuate based on one-time events.

The revenue drivers for West Clermont's "other" local revenues are mostly expected to remain stable or grow slowly, except for interest which declines after FY24. The district's assumptions about these drivers inform their revenue projections in the five-year forecast.