The Maplewood Richmond Heights School District is committed to operating a first-class school district while practicing fiscal responsibility and efficient management of district resources.

2008-2009 MRH Budget

2007-2008 MRH Budget

Historical Perspective
Recent Accomplishments
Major Issues Facing the District
MRH Financial Documents




In April 2001, the voters approved a $.52 operating levy increase that was implemented in the 2001-2002 school year. A ruling by the Missouri Attorney General in November 2003 determined the State Auditor’s interpretation of the tax rate calculations for 2001, 2002, and 20003 was incorrect and the district did not receive all of its tax revenue for these years. The District is recouping or recovering the lost tax revenue for these years in the 2004, 2005, and 2006 tax years. In August 2004, the tax levy was set with a recoupment of 21 cents to recover a portion of the lost revenues from the 2001 taxes. In August 2005, the District plans to recoup all the lost 2002 tax revenue ($664,000). Due to these revenue variances, the current operating fund balance has and will continue to fluctuate over the next few years.

The School District has gone from a ($441,000) deficit in its current operating funds in 1996-1997 to a $2.4 million projected current operating fund balance in 2005-2006. The current operating fund balance for 2005-2006 is projected at 20.5% of expenditures and consists of an operating reserve of $1.8 million (15.6% of expenditures) and a capital projects reserve of $600,000 (4.9% of expenditures). The capital project reserve will be increased by $840,000 due to the sale of A.B. Green school in the 2005-2006 school year.

Since the financial crisis in 1997, the Board of Education and the District’s staff have prepared realistic budgets each year, and have used that budget as a critical decision-making tool. An in-depth budget workshop is presented to the Board of Education each year in May/June to analyze past performance and review the priorities of the District. One of the Board of Education’s directives for the 2005-2006 budget was to increase the reserves to 15% of expenditures and this has been achieved. Each month, financial statements showing comparisons to budget and to prior year are presented to the Board of Education.

The Board of Education has required the preparation of three-year financial projections on at least an annual basis. The Board uses the projections to view the future effects of past Board decisions and to gauge the impact of current financial proposals placed before the Board.

Various projections were presented to the Board of Education to assist them in the setting of salary schedules for the District’s most recent teachers’ agreement. In addition, financial projections were used extensively in the Board’s decision to place an $8.6 million bond issue proposal on the ballot in August 2004 and the public agreed with the Board and approved this ballot.

The State Auditor was petitioned to audit the School District for the year ended June 30, 2004. The auditors reviewed board minutes, written policies, financial records, and other pertinent documents and interviewed various personnel. Their findings were presented on July 20, 2005 in a public meeting.

1. Financial stability continues to be a priority of the District. In the recent past the District has established and adhered to carefully prepared budgets to maintain stability.
   
   
2. Budgets used as critical decision-making tools. Annual budgets are prepared on a "zero-base," with the input of all administrators and their staff. Once prepared and approved by the Board of Education, the budget is carefully adhered to and monitored on a monthly basis.
   
   
3. Financial projections used for planning purposes. Three-year financial projections are prepared on at least an annual basis, and reviewed prior to the Board’s approval of any major financial decision.
   
   
4. District issued and refinanced bonds. After the passage of the bond issue for $8.6 million in August 2004, $7.1 million bonds were issued in October 2004. By applying and being approved for a Qualified Zone Academy Bond (QZAB) grant in November 2004, the District was able to issue $1.5 million of QZAB bonds in December 2004 and saved the District $738,657 in interest. Also, in May 2005, the District refinanced $6.3 million of old bonds and saved the district $253,375 in interest.
   
   
5. Bonds are used for renovations. The 2004 bond money is being used for renovation projects at the High School and at the Early Childhood Center.
   
   
6. Salaries increase. The School District has worked very hard over the last five years to increase teacher’s salaries to the medium in the St. Louis area. The increases for teachers have been:
   2001-2002, 5%
   2002-2003, 6%
   2003-2004, 4.5%
   2004-2005, 3.5%
   2005-2006, 8%

1. Property taxes continue to be the major component of district funding comprising 71.2% of revenues in 2005-2006. Property taxes have increased from fiscal year 2005 to fiscal year 2006 due to reassessment, new commercial construction, and recoupment of taxes. After recovery of taxes in fiscal year 2006 and 2007, tax revenues will return to normal levels.
   
   
2. The District’s continued classification or state aid allocation purposes as "hold-harmless" results in minimal increases in the District’s state aid. The District has received a flat amount in state aid monies due to the current state aid formula calculation since 1993. In 2006-2007 fiscal year, a new formula will be implemented by the state. The state will continue to do fine tuning with the formula but all scenarios suggest the School District will receive a negligible increase.
   
   
3. The increasing competitiveness among St. Louis County school districts to attract and retain quality staff. Staffing compensation and benefits represent 79% of current operating expenditures in fiscal year 2006. Certified salaries were increased by 8% in fiscal year 2006. It is clear that school districts are becoming highly competitive in the setting of teachers’ salaries to attract and retain quality staff and MRH will continue to increase salaries to stay competitive.
   
   
4. Medical, dental, and life insurance premiums continue to increase dramatically each year. This problem is being experienced throughout the United States in both corporations and government entities. Medical premiums increased 15% in fiscal year 2005 and will increase 9.5% in fiscal year 2006. Matching retirement contributions continue to increase along with large increases in workman’s compensation insurance. This will continue to use funds that could be used for salary increases. This situation will need to be monitored carefully over the next few years and alternatives may need to be implemented.
   
   
5. The State Auditor’s findings were:
   • A need for a formal written policy on use of district credit cards
   • More documentation on food purchases and meals
   • Document reasons for exceptions to tuition reimbursement
   • Limitation on professional development travel
   • Consider eliminating the use of cash advances
   • Establish bidding requirements for items under $12,500
   • Bid professional services
   • Strictly monitor progress of construction projects and overages
   • Ensure budget amendments are made in a timely manner
   • Establish fixed assets and monitor surplus sales
   • Ensure cellular phones are used only for business purposes
   
   The School District set up a policy committee to review these recommendations and implement any necessary changes.