2018 Financial Annual Report
Letter from the Treasurer Mariemont City Schools is an excellent school district that provides an exceptional value to our community. We continue to make progress and our students are rated near the top of both state and national standards on a regular basis. We know that our community expects a tremendous academic experience and that is the foundation of our work. Education today is different than it was 50 years ago and will only continue to evolve. We pride ourselves on paving the way for educational advancements, including personalized options for students and amplified learning in the classroom. The only way to adequately prepare students for tomorrow’s world is to be on the cutting edge of educational practice today. We also know that, without a balanced budget, accurate forecasting and fiscal responsibility, these outstanding classroom expectations and achievements are not possible. It is important for us to transparently share with you the financial status of Mariemont City Schools and for you to be informed as to what your investment in our schools means for students as well as residents. Four years ago we passed an operating levy for day-to-day expenses such as teachers, technology, maintenance and utilities. The promise in 2014 was to make those dollars last for three years, and I am proud to say that because of our fiscal responsibility, we have stretched those funds to four years. But we can’t stretch these dollars any further without impacting the quality of education in the classroom. In addition, our nearly 50-year-old high school facility is failing our students and depleting our operating budget with its continued system maintenance and repairs. Action must be taken if we want to maintain the excellence in our classrooms and continue to provide an exceptional value to our community. This Financial Annual Report is designed to give you a first-hand look at our district’s financial status. Please review the information and feel free to contact me should you have any additional questions. I am happy to discuss this information with our community at any time. Sincerely,
Tom Golinar Treasurer/CFO Mariemont City Schools
2018 Financial Annual Report
Where Does the Money Come From? The state of Ohio has decreased its funding to Mariemont City Schools by 19%. In fact, the district has lost more than $1 million in state aid since the 2014-15 school year.
74%
1%
Local Taxes
Other
25%
State Revenue
How do Taxes Compare? AVERAGE 2017 SCHOOL PROPERTY TAX PER $100,000 OF VALUE $1,868
$1,700 - $1,900 Finneytown, St. Bernard and Winton Woods
Average
$1,500 - $1,700 Cincinnati Public, Deer Park, Madeira, MARIEMONT and Wyoming*
$1,300 - $1,500 Loveland, Mt. Healthy, Norwood and Reading $1,100 - $1,300 Forest Hills, North College Hill, Princeton, Sycamore, Milford and Lockland
$0
$1,100
* School district also collects an income tax
$1,622 Average
$1,434
Average
$1,179
Average
$1,300
$1,500
$1,700
$1,900
2018 Financial Annual Report
What About Facility Costs? Needs at Mariemont Junior High School, Mariemont Elementary School and Terrace Park Elementary School were addressed in 2010 and now the same must be done for Mariemont High School. The infrastructure needs of the high school facility are many; aging systems, roofs, wiring and plumbing are noticeable and in need of repair and/or replacement. The district has spent over $500,000 over the last five years in repairs and maintenance at the high school. One-fourth of the HVAC units are not functioning; sewage backups into the building are frequent; the electrical grid has been maxed out; roofs are leaking. Because of these failing systems, the district needs to budget $1,000,000 annually for the high school maintenance unless action is taken now.
$1,000,000 annually for Mariemont High School maintenance
What is the Process to Address These Needs?
Mariemont City Schools began a two-year community process in 2016 to recognize and identify the needs at Mariemont High School. Hundreds of community members participated in facility teams, attended forums and school chats or took the district’s statistically-valid, third-party survey to give feedback and ask questions about the process. After two years of community participation, members of the Community Project Team and Finance Team made recommendations to the board of education for consideration of the project scope and budget before a final decision is put before voters in November, 2018. For more information on this plan, visit the MHS Facility Project section of our website www.mariemontschools.org.
2018 Financial Annual Report
How has Funding from the State Changed? State foundation is the per pupil funding provided by the state of Ohio. The Mariemont City School District only receives 30% of the total per pupil funding it should receive from the state. This issue is only exasperated by the recent total elimination of the TPP (tangible personal property) tax reimbursement that the district had received from the state for years.
STATE FOUNDATION AND TPP REIMBURSEMENT
TPP $439,744
State $3,645,491
TPP $0
State $3,930,844 Projected State $3,216,726
TPP $0
Projected State $3,217,521
TPP $0
FY18
$3,216,726
FY19
$3,217,521
FY20
TPP $0
Projected State $3,103,789
TPP $0
Projected State $2,980,135 Projected State $2,847,564
FY15
TPP $916,860
State $3,299,979
TPP $0
$3,103,789
$4,216,839
FY16
$4,085,235
FY17
$3,930,844
What are the Spending Priorities?
FY21
$2,980,135
FY22
$2,847,564
In the Mariemont City School District, the majority of the annual budget goes directly to students and staff through instruction. If the district wants to continue providing a great value for its residents, it must ensure that appropriate levels of funding are being allocated into classrooms.
EXPENSES BY AREA FOR FY 2017
12%
Maintenance & Facilities
69%
Instruction
10%
Administrative & Fiscal Services
4%
Transportation
3%
Extracurricular
2%
Other
2018 Financial Annual Report
Ensuring an Efficient Budget Mariemont City Schools knows the importance of an efficient budget and strives to maintain its excellent track record in this area. A thorough review of every school and department budget is completed annually and each school is provided a per-student budget to keep in alignment with the overall district budget. If a school or department is in need of an increase, the school submits a proposal for the Treasurer to review with every penny being monitored and accounted for to maximize efficiency and accountability. Additionally, staffing levels and programs are reviewed and adjusted each year based upon student needs.
How Does the Budget Impact Classroom Learning? Mariemont City Schools prides itself on being on the cutting edge of instructional best practice in our classrooms. Because fiscal responsibility has resulted in a steady cash flow to instruction and teaching, the district is achieving at an astonishing rate. Mariemont High School students combine for an ACT score more than five points above the national average and accumulated $6.9 million in earned scholarships in 2017. The district is among the top 3% of all school districts in Ohio with a Performance Index of 106.75 for the 2016-17 school year. The Warriors BEyond program has enriched the learning of students in all buildings, presenting hands-on, real-life experiences in and out of the classroom. Additionally, an increase in world language, arts and STEM (Science, Technology, Engineering and Math) classes have broadened the educational experiences of students while preparing them to be global learners and deeply committed members of the community and world. These types of excellent programs are made possible because of strong financial management and continued financial support from taxpayers.
2018 Financial Annual Report
What are Others Saying About our Fiscal Management? In 2017 the Mariemont City School District received the Auditor of the State award from the Ohio Auditor’s Office. The award is presented to entities who file timely financial reports in accordance with GAAP, as well as receive a “clean” audit report. The “clean” audit report means the district’s financial audit did not contain findings for recovery, material citations, material weaknesses, significant deficiencies, audit findings or any questioned costs. The district takes pride in its clean and accurate record-keeping and responsible spending practices, even in the face of state budget cuts and revenue decreases. Strong financial management is the result of continued intentional practice and high standards.
NEXT OPERATING LEVY
2018
2017 Budget growth kept to
2016
since our last levy
2015
2%
Operating Levy Timeline
LAST OPERATING LEVY
2014
Voters approved the last operating levy in 2014. The promise in 2014 was to make those dollars last for three years; however, with strong fiscal management the district stretched those funds to four years. The Community Finance Committee recommends an Operating Levy in November, 2018.
2018 Financial Annual Report
Excellent Value for the Community
Mariemont City Schools provides an excellent value for its community with its continued success in and out of the classrooms. The district makes strong financial decisions that protect valuable resources. In accordance with the Destination 2026 strategic plan, it aims to provide students with the knowledge, skills and experiences they will need to compete globally and succeed consistently in tomorrow’s world. Mariemont High School offers 20 Advanced Placement courses and 40 elective classes while Mariemont Junior High School has 25 elective offerings for its students. The district features a comprehensive world language program beginning in the elementary schools and continuing through high school. Also, a district-wide STEM (science, technology, engineering and math) program is in all buildings.
Mariemont City Schools 2 Warrior Way • Cincinnati, Ohio 45227 513-272-7500 • www.mariemontschools.org
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