Mentor Public Schools 2022

Financial Report

Board of Education

The Mentor Board of Education consists of five citizens elected by nonpartisan ballot, each serving a four-year term. It functions as a policymaking body according to the mandates of state law and represents the State of Ohio and citizens of Mentor Public Schools on all matters and decisions dealing with public education and in some matters concerning services for nonpublic school students. The Board of Education determines the goals and priorities of the school district and authorizes the appointment of the superintendent, treasurer, teachers, and other staff members.

Welcome

We are proud to present this Annual Finan cial Report for fiscal year 2022 to our commu nity. This report is a new annual report that we are presenting to our community to share where our resources come from, how they are used, and how this impacts our taxpayers. Our goal is to publish this report annually to pro vide financial transparency in an understand able manner for our community.

Every aspect of our school is supported and shaped by our strategic plan. Our strategic plan supports our mission of inspiring students today to reach their potential tomorrow by ensuring a safe learning environment, provid ing a balanced, high-quality education through maximizing our resources and encouraging strong community partnerships. Through our budgeting and forecasting, we strive to support this mission while maintaining fiscal prudence to help our community achieve the best return on its investment.

Financial information presented in this report was prepared on the cash basis of accounting, which differs from the financial information prepared in accordance with generally accepted accounting principles (GAAP) in the United States. The in formation presented is unaudited and prepared for informational purposes only. An nual audited financial statements prepared in accordance to GAAP can be obtained at mentorschools.net under the CFO’s webpage.

I hope you find this report to be transparent and informative. If you have any ques tions, please feel free to contact me at wade@mentorschools.org or 440-974-5230.

Sincerely,

Our Mission Our Vision

Bill Wade Mentor Schools CFO/Treasurer

Mary Bryner President Tom Tuttle Vice President

Annie Payne Board Member

Maggie Cook Board Member

Virginia Jeschelnig Board Member

Craig Heath Superintendent

General Fund Financial Overview

Total revenues/resources decreased approximately 0.72% in fiscal year 2022 (July 2021 to June 2022). While we saw an increase of approximately $1.0 million (1.4%) more in Local Property Tax collections as a result of the Lake County auditor’s triennial property valuation increase, we also saw a reduction in our investment income of almost $1.4 million, causing our Local Sources of revenue to decrease by $453,713 from the prior year. Likewise, our State Funding was down approximately $620,000 based on the changes made with the Fair School Funding Plan. Additionally, we received $874,345 in emergency connectivity grant funding in fiscal year 2022 (FY22) that we did not receive in fiscal year 2021 (FY21) and therefore saw an increase in our Federal Funding by $458,709.

Total Expenditures increased by 5.28%. A primary driver was staffing and related benefits. Contracts for both employee unions included increases in base compensation of 2.25%. Additionally, there was an increase in transfers/advances to other funds to support the district’s five-year capital plan and $2.1 million transfer to the district’s budget reserve that did not get transferred over in FY21 as a result of the budget surplus experienced in fiscal year 2020 (FY20). Additionally, transportation costs in FY20 and FY21 were reduced because of the COVID-19 pandemic. Because busing returned to pre-pandemic services, we experienced more traditional costs associated within our transportation department albeit higher gasoline prices.

RESOURCES TAKEN IN

SERVICES PROVIDED

$66,572,212

$67,802,758

$5,930,300 $8,033,616

$5,972,540

$9,331,138

Where the Money Comes from

General Fund Revenue

Local Property Taxes include residential, commercial, and public utility property taxes and tax incremental financing proceeds. State Support includes aid based on the Fair School Funding Formula, the Homestead (owner-occupied) and Rollback credits, and the district’s portion of Casino Revenue. All Other Operational Revenue includes tuition, student activity fees, rental charges, investment income, and donations. The district received the majority of its revenue — 76% — from Local Property Taxes. The burden on local taxpayers is likely to grow as state aid is expected to remain steady. Approximately 69.3% of property taxes are generated from residential, 23.7% from commercial and 7.0% is from public utility. The district does not receive any local income tax.

Local Property Taxes

This graph shows the amount of cash collections received by the district from real and personal property taxes. Property taxes provide the majority of the local revenue to operate and maintain our schools. This district accounts for these collections in two funds:

General Fund (Operating Levy):

Tax dollars are received by the district for day-to-day operations, which primarily entail employee salaries and benefits.

Improvement:

Tax dollars are received by the district and can be used only for repairs, improvements to buildings and grounds, technology, vehicles, textbooks and other capital assets with a useful life of five years or more. These funds cannot be used for employee salaries and benefits.

Property Tax Revenue

Where the Money Comes from

State Support (General Fund)

State sources of revenue generated $23.8 million, or 22%, of all general fund revenues. Because of a relatively high property valuation and income per pupil, as well as other demographic figures, the district is considered wealthy and receives much less than the state average (43%).

In FY20 the state reduced its funding by approximately $1,976,127 due to the impact of the pandemic on the economy. This reduction only lasted one year. The state implemented a new funding model in FY22, commonly referred to as the Fair School Funding Model, which funds schools directly based on predetermined costs associated with educating students across the state and the number of students attending the district. The district saw a decrease in unrestricted aid (-$2,041,459) in FY22, but saw an increase in restricted aid ($1,486,641) with the new funding model. The district saw a net decrease in state aid of $554,818.

Revenue

The state legislature designated 34% of tax receipts generated from casinos to school districts across the state starting in calendar year 2013. As the chart to the right shows, while this money is appreciated, it provides minimal impact.

State Sources of Revenue Five Year Comparison

State Aid

State Aid

and Rollback

CASINO REVENUE

Revenue Percentage of Total General Fund Revenue

Where the Money Goes

and Services for

Where the Money Goes

INSTRUCTION

This is the largest disbursement category and relates to the direct instruction of our students. Students are directly impacted by expenditures from this category.

PUPIL SUPPORT

This area comprises all nursing, guidance services, speech, hearing, occupational therapy, physical therapy, and psychological services.

INSTRUCTIONAL STAFF SUPPORT

These costs include library services, curriculum development, staff training, and technology integration.

ADMINISTRATION

These costs are associated with the administration of the district both at the building and department level. The costs associated with fiscal management, including business operations, of the district are also associated with this area.

OPERATIONS AND MAINTENANCE

These are the costs associated with keeping the physical plant open, comfortable and safe for use and keeping the grounds, buildings, and equipment in effective working condition and state of repair, as well as costs associated with site improvements, maintenance, and construction.

ATHLETICS/ EXTRACURRICULAR ACTIVITIES

This area includes costs associated with the salaries, benefits, and supplies for student oriented clubs/ activities and athletics.

TRANSPORTATION

These are expenditures associated with providing transportation to the students who reside in Mentor Exempted Village school district consistent with the Board of Education policies and laws of the State of Ohio.

TRANSFERS/ADVANCES

These transfers/advances account for withdrawing money from one fund and placing it in another fund either temporarily (advance) or permanently (transfers).

OTHER

These are costs associated with food service, community services, and refunds of prior year receipts.

Tax Rates and Valuation

All tax rates for the district, except Inside Millage and our Emergency Levy, are reduced as property valuations increase. In accordance with House Bill 920, as property valuations increase during the triennial update and reappraisal periods, the voted millage is reduced to generate the same amount of tax revenue for the district as we received when each levy was initially approved by the voters. The chart to the right illustrates the difference between the district’s gross, or voted, tax rates and the effective, or the amount being collected for residential properties. The rates to the right are for the 2021 tax year collected in calendar year 2022.

Inside Millage*

Current Expense Levies

Levy

Improvement Levy

Total Rate

Inside Millage is provided by the Constitution of the State of Ohio and is levied without a vote of the people. It is called Inside Millage because it is “inside” the law. This millage rate does not change.

The chart to the right reflects the total property valuations for each of the collection years listed. The increase noted in 2019 was a result of the 2018 auditor reappraisal, and the increase in 2022 is a result of the 2021 triennial update.

Tax Rates and Valuation

SCHOOL TAXES ON A $100,000 OWNER/OCCUPIED HOME*

Tax Year 2017

Fund

General Fund

Permanent Improvement

General Fund

Year

Millage

Current Exp - Class

Res/Ag Continuing Exp - Class

Res/Ag

Levy

Tax Year 2019

Current Exp

Fund

General Fund

Permanent

Tax Year 2021

Millage

Current Exp - Class

Res/Ag

Continuing Exp - Class

Res/Ag

chart above shows the impact

demonstrates how the

of a

Fund

General Fund

Permanent Improvement

Tax Year 2018

Millage

Current Exp - Class

Res/Ag

Continuing Exp - Class

Res/Ag

Year Total

with

and

General Fund

General Fund

Permanent Improvement

Tax Year 2020

Millage

Current Exp - Class I Res/Ag

Continuing Exp - Class

Res/Ag

Year Total

Current

Continuing

Calculation takes into

for

Property Tax

Shown below are the percentages of each dollar going to each taxing entity for residents in Mentor and Mentor-on-the-Lake. *Percentagesmaynotbeexactbecauseofrounding.

City of Mentor Residents Property Tax Breakdown

Special Assessment 62.5%

2.7% 2.1%

Mentor Public Schools

Mentor Public Library

Metroparks

4.8%

Lakeland Community City of Mentor

5.1% 7.9%

Lake County

14.8%

City of Mentor-on-the-Lake Property Tax Breakdown

0.7%

Mentor Public Library

Special Assessment 2.3%

Mentor Public Schools

4.0%

Lakeland Community City of Mentor-on-the-Lake

4.3% 24.1%

Lake County

12.4%

Metroparks 52.2%

2022 School Property Tax Rates: How Mentor Public Schools Compares with Other Lake County Districts

below chart illustrates the residential effective property

remain in the

for

for

County. Despite funding

County

Harbor

Exempted Village

Riverside Local (Lake)

Local (Lake)

Local (Lake)

About Mentor Public Schools

Mentor Public Schools is a suburban school district that serves more than 7,100 students enrolled in pre-kindergarten through 12th grade from the City of Mentor and the surrounding communities of Mentoron-the-Lake, Concord Township, and Kirtland Hills. Our district oper ates seven elementary schools, two middle schools, one high school, one state-of-the-art specialized school for students with autism, and preschool programs, with just under 1,000 employees.

Mentor High School is one of the largest in the State of Ohio based on enrollment, which affords us the opportunity to offer students more than 200 courses through our current Program of Studies. Classes available include college or honors level, Advanced Placement (AP), ca reer technical education, art, music, a variety of elective options, and on line and distance learning courses. Providing more opportunities and student choices will ultimately help us better attain our goal of meeting and exceeding the instructional needs of all learners.

We believe providing an abun dance of extracurricular activities is

also an extremely important com ponent to producing well-rounded and successful students who are prepared for life after graduation. Our students learn the importance of community and giving back from the moment they step into our schools, as each school build ing supports an array of service activities and causes. In a typical graduating class, students can cel ebrate having provided more than 10,000 community service hours to benefit their neighbors. Additional ly, students have the opportunity to participate in more than 60 clubs, activities, and athletic teams.

While keeping students safe and providing a high-quality educa tion is a top priority, maintaining fiscal responsibility by being good stewards of our taxpayer dollars is equally important. Mentor Schools consistently earns the GFOA's Certificate of Achievement for Excellence in Financial Reporting. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its at tainment represents a significant accomplishment by a government and its management.

Our Schools

Mentor Public Schools operates seven elementary schools, two middle schools, one high school, one state-of-the-art specialized school for students with autism, and preschool programs. With just under 1,000 employees, Mentor Schools works to ensure a safe learning environment, provide a balanced, high-quality education, maximize district resources, and encourage strong community partnerships.

Mentor Schools provides a Crisis Hotline, 440-974-4663, that is available 24 hours a day, seven days a week to report any threat to the safety of our school community at any building or school event. A caller does not have to identify themselves or leave a message.

MENTOR HIGH SCHOOL

Principal: Jason Crowe 6477 Center St. 440-974-5300

MEMORIAL MIDDLE SCHOOL

Principal: Ericka Blackburn 8979 Mentor Ave. 440-974-2250

BELLFLOWER ELEMENTARY

Principal: Ms. Heather Hardy 6655 Reynolds Road 440-255-4212

SHORE MIDDLE SCHOOL

Principal: Tommy Dwyer 5670 Hopkins Road 440-257-8750

FAIRFAX ELEMENTARY

Principal: Ms. Melanie Pearn 6465 Curtiss Ct. 440-974-5294

Our Schools

HOPKINS ELEMENTARY

Principal: Christine Burwig 7565 Hopkins Road 440-255-6179

ORCHARD HOLLOW ELEMENTARY

Principal: Mrs. Jeniffer Harris 8700 Hendricks Road 440-257-5955

STERLING MORTON ELEMENTARY

Principal: Mr. Bill Porter 9292 Jordan Drive 440-257-5954

LAKE ELEMENTARY

Principal: Laurie Hoynes 7625 Pinehurst Road 440-257-8773

RIDGE ELEMENTARY

Principal: Mrs. Jodi Poremba 7860 Johnnycake Ridge Road 440-974-5400

MENTOR CARES

Director: Christy LaPaglia 5028 Forest Road 440-257-5951

Mentor Board of Education

Center St. Mentor, OH

Mary Bryner

Maggie Cook Virginia Jeschelnig Annie Payne Tom Tuttle Craig Heath Superintendent Bill Wade Chief Financial Officer

MISSION:

Inspiring Students Today to Reach Their Potential Tomorrow

VISION: Together we will: Ensure a safe learning environment

Provide a balanced, high quality education Maximize district resources

Encourage strong community partnerships Visit our website at mentorschools.net.

Holiday Concert Season is Coming Soon! Tis the season for Mentor Public Schools to shine! Throughout November and December, students will be filling the fine arts center with holiday joy and showcasing their talents with free concerts that are open to the public. Mark your calendar and don’t miss these amazing performances.

Find us on Facebook and Twitter

Nov.10: Memorial Orchestra Concert Nov. 12: Mentor High School Cabaret Concert Nov. 15: Memorial Choir Concert Nov.16: Shore Orchestra Concert Nov.17: Shore Choir Concert

Dec. 6: Shore Band Concert Dec. 8: Memorial Band Concert Dec. 12: Mentor High School Choir Concert Dec. 14: Mentor High School Bands Concert Dec. 15: Mentor High School Orchestra Concert All concerts start at 7 p.m. at the Mentor Fine Arts Center on the Mentor High School Campus (6477 Center St.). We hope to see you there!