With 2023 fast approaching, the Marysville School District is presenting a clearer picture of the levy voters will be asked to approve in May.
At Thursday night’s meeting, district treasurer Todd Johnson said that he and the finance committee have looked at two options for 5-year emergency levies, one at 7.9 mills and the other at 9.9 mills.
“The 9.9 mill is what they (the finance committee) landed on as their recommendation,” Johnson said. “The 9.9 mill is what I would recommend to the board.”
The treasurer explained that the 7.9-mill levy would cost the owner of a $200,000 home an additional $533 annually. It would generate $8.5 million per year, but that figure does not keep the district out of deficit spending.
“If we pass a 7.9-mill levy, at no point do revenues exceed expenditures (over the 5-year term),” Johnson said.
In fiscal year 2023, which is the current budget year, expenditures are projected to outpace revenue by $3.7 million, Johnson said. The district is able to stay in the black because it has built up $25 million in cash reserves.
“Some might look at our cash balance this year, of about $25 million, and say ‘you’ve got that large cash balance, why do you need a levy why don’t we just wait?’” Johnson said. “We talked about … how much expenditures are exceeding revenues – that’s why we can’t wait, that number is only growing which means we are eating into that cash balance very quick.”
On the current path, projections show the district with a positive balance through fiscal year 2025, but cash reserves should be depleted in 2026.
According to Johnson, the 7.9 mill option, if approved would only keep the district above water for a few years.
“There’s a good chance, I’d say a very good chance, we’d be back on the ballot in three years,” Johnson said, admitting that if certain conditions aligned the district might be able to wait an additional year.
The treasurer said the 9.9-mill option would allow the district to make a “levy guarantee” that it would not come back to voters for at least four years.
“If we passed this 9.9 mill levy we won’t be back until 2027,” Johnson said.
The 9.9-mill option would generate $10.7 million per year and would cost a $200,000 homeowner $693 per year.
Johnson said the 9.9-mill option would allow the district revenue to come close to meeting expenditures, greatly reducing the impact on cash reserves.
Johnson explained that the projected shortfall was too large for district fend off by cutting expenses. He said stay afloat over the next four years $8 million would need to be trimmed out of the budget, the equivalent of 115 staff positions.
Johnson said that in order to put the issue on the May 2 ballot, the board must make a decision in the issue by Jan. 20. Board President Sue Devine said the board has called a special meeting for Nov. 2 where the board will fully discuss the topic, ahead of a potential vote on the issue at the November regular meeting.
In other business, the board:
-Approved a tax abatement for Hardy World for construction of a 122,000-square-foot facility on 10 acres in the Marysville Innovation park. The facility will eventually house three businesses with a projected 75 jobs and $3.7-million payroll.
Union County Economic Development Director Eric Phillips said Hardy World is seeking a 10-year, 75% abatement on property taxes. Anything about a 60% abatement requires approval of the impacted school board. Through a revenue share agreement between the city of Marysville and the schools, each entity will share all property tax and income tax generated from the site, an estimated $500,000 total for each entity. The schools will also receive an addition $10,000 donation from the company, each year of the abatement and will have opportunities for internships. Board member Jermaine Ferguson said it will be important for the economic development office stay on top of the project to ensure the job and payroll targets are met.
The board approved the abatement 5-0.
–Learned that the district offices will begin operating out of the Chestnut Street building on Oct. 31. This will allow renovation work to begin at the Edgewood Drive administrative offices in order to convert them into classrooms by next school year.
-Approved a realignment of elementary boundaries so that the new housing development north of Cook’s Point will now be in the Navin region, rather than Mill Valley Elementary.
–Heard first reading on a policy to allow the employment of substitute teachers who do not hold post-secondary degrees, a change recently allowed in the state of Ohio. Superintendent Diane Allen said the district is provided substitutes by an educational service center and this allows that entity a new avenue to secure candidates.