We have the same rules, if you move into another zone you don't lose any time, if you just transfer you lose a year.
Your other problem is kids playing?? In Memphis area they start playing in leagues in the 3/4 grade and I'm not talking about YMCA flag football. Good many of the middle schools have teams and have a playoff at the end of the year, same for freshman teams and jv teams. When my g/son was a freshman he had 3 games a week. Now he only got in one varsity game (maybe 2) but he was always in 2 games a week.
Sounds to me like ya'll don't get them into sports early enough.