BUDGET REPORT

BUDGET REPORT 2013-14

District Office Demond Means, Ed.D., Superintendent Vacant, Assistant Superintendent of Educational Services Gail Grieger, Executive Director of Business Services Vacant, Executive Director of Human Resources Melissa McCrady, Executive Director of Communications Vacant, Director of Pupil Services Jeridon Clark, Director of Technology Kyle Thompson, Director of Buildings and Grounds 5000 W. Mequon Rd. Mequon, WI 53092 262.238.8500 Homestead High School Brett Bowers, Principal 5000 W. Mequon Rd. Mequon, WI 53092 262.238.5900 Lake Shore Middle School Vacant, Principal 11036 N. Range Line Rd. Mequon, WI 53092 262.238.7600 Steffen Middle School Deborah Anderson, Principal 6633 W. Steffen Dr. Mequon, WI 53092 262.238.4700 Donges Bay Elementary Allison Rudich, Principal 2401 W. Donges Bay Rd. Mequon, WI 53092 262.238.7920 Oriole Lane Elementary Mary Jo Tye, Principal 12850 N. Oriole Ln. Mequon, WI 53097 262.238.4220 Wilson Elementary Jocelyn Sulsberger, Principal 11001 N. Buntrock Rd. Mequon, WI 53092 262.238.4600 M-T Recreation Dept. Ryan Mangan, Director 11040 N. Range Line Rd. Mequon, WI 53092 262.238.7535 EXECUTIVE SUMMARY 1. The total budget proposed for the 2013-14 school year is $52,272,170. a. Net total expenditures (less interfund transfers and refinance costs) for 2013-14 are $47,440,315. b. Net total expenditures reflect a 3.22% increase from the prior year. c. Budget includes use of $775,000 of fund reserves for security related projects. Refer to pages 8 and 9 for information on expenditures and revenue included in this budget. 2. Mequon and Thiensville residents are being asked to support property taxes for school purposes in the amount of $37,939,925 for the 2013-14 budget. a. The proposed tax levy is an increase of $378,428 or 1.01% more than prior year. b. A levy rate of $9.28/$1000 of equalized value is projected based on a 3% decrease in property valuations. All else being equal, on a home valued at $350,000, this represents an increase in school property taxes of $210. c. This is the maximum levy allowed by law. Refer to page 7 for projected and historical information on taxation, levy rates and equalized value. 3. We anticipate having 3,400 resident students enrolled as of September, 2013. a. This is a decrease of 72 resident students since September, 2012. b. District enrollment has decreased for 12 of the past 14 years. c. The amount the district is able to tax is limited to resident enrollment. Refer to page 7 for projected and historical information on enrollment. 4. Highlights of the 2013-14 budget include: a. Expansion of Advanced Placement courses at HHS. b. The expansion of AVID program to middle schools. c. Hiring of Director of Human Resources and Director of Communications positions. d. Security upgrades including entrance renovations at all buildings. 2 Mequon-Thiensville School District 2013-2014 District Budget Report

Letter from the Superintendent TO THE CITIZENS OF MEQUON-THIENSVILLE Dear Community Members, There are two central purposes of school district budgets. The first is more structural, providing a financial framework for the transparent accounting of revenue and expenditures and clear articulation to community taxpayers. The second and more important purpose is moral in nature. A school district budget aims to deploy the resources schools need to ensure that students have the opportunity to maximize their academic, artistic and athletic abilities. Enclosed you will find the proposed budget for the 2013-2014 school year. The budget is aligned to the strategic plan approved by the Board of Education in the fall of 2012. However, the financial context in which the 2013-2014 school year budget was developed highlights the continuing difficulty local school officials are having in ensuring the very best in academic programming and artistic and athletic opportunities for our children. The school district continues to work within the context of reduced revenue to properly establish academic programming. Although we continue to perform well as an aggregate, there are subgroups of children who need specialized interventions to ensure that they are also college and career ready. The necessity of aligning the budgeting process with the academic vision of the school district underscores our need for fiscal support from our community. In the Mequon-Thiensville School District, we are proud of our academic accomplishments. Most recently, we were ranked among the best school districts in Wisconsin by the state s new school report card accountability system. In addition, district students posted some of the best Wisconsin Knowledge and Concept Examination (WKCE) results in the Milwaukee metropolitan area. When you consider that the state has increased the rigor of the WKCE scoring system, the performance of our students is even more impressive. We continue to be proud that our students achievements have ranked Mequon- Thiensville among the best districts in the state by any standard metrics available. I would be remiss if I did not take this opportunity to thank all of the stakeholders who contribute to making our school district such a high-quality educational organization. We continue to be appreciative of the taxpayers who support our school system through public funds. Our parents maintain a level of involvement that is unrivaled in the area, and we would be unable provide our present services to our children without the support of our parent community. I would also like to thank the Mequon-Thiensville Education Foundation (MTEF) for its unwavering financial and moral support of our school district s vision and mission, which enables us to strive for true academic excellence. Finally, I want to thank our teachers and students. I have never been as privileged to work with such a dedicated and hard-working group of people as I am now. I am pleased to report to the community that for this school year, we have once again found a path to efficiently and effectively apply the funding available to us to maintain the rich academic tradition of the Mequon-Thiensville School District. Our success is reflected in the performance of our students on standardized assessments and in the excellence of the fine arts and extracurricular activities we continue to offer. Thank you for your investment in the public schools of Mequon and Thiensville. Sincerely, DEMOND A. MEANS, Ed. D. Superintendent of Schools 3 Mequon-Thiensville Visit us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District Budget School District Report 3

DISTRICT GOALS District Goals 1. The Mequon-Thiensville School District will continually evaluate and improve its curriculum, instructional practices and assessment tools so that all students demonstrate academic growth relevant to our everchanging world. 2. The Mequon-Thiensville School District will continually embrace a shared leadership model, which supports the growth of educational leaders including: faculty, staff, administration, parents and community. HIGHLIGHTS of the 2013-14 BUDGET The Mequon-Thiensville School District is committed to upholding its long tradition of excellence. The district continually seeks to increase efficiency, raise the bar for student achievement and provide a world-class education to all of its students. The district s 2013-2014 budget keeps these goals in mind, maximizing the effectiveness of community members investment in their schools. The following overview provides general information on the 2013-14 budget. 3. The Mequon-Thiensville School District will continue to foster a climate that honors diversity, attempts to instill goodness in all children, and upholds shared goals and values. District Curricular Goals 1. Effective literacy instruction for all learners. 2. Creation and analysis of common assessments for enhanced instructional practice and student learning. 3. Data analysis of student performance for the purpose of planning instruction to help all students grow and learn every year. 4 Mequon-Thiensville School District 2013-2014 District Budget Report

The Funding Formula: Since 1993-94 Wisconsin public school districts have operated under legislatively mandated revenue limits. A district s revenue limit is the maximum amount of revenue it may raise through general state aid and property taxes. Each school district s available revenue was initially based upon the amount of per pupil spending in 1992-93. The limit is adjusted annually (either increased or decreased) based on a three-year rolling enrollment factor and an annual per pupil adjustment pending legislative approval. School districts must get voter approval through a referendum to expend any funds that exceed the revenue limit. As a result of the funding formula, enrollment has a significant impact on the district s budget. The Mequon-Thiensville School District has experienced a decrease in enrollment for 12 of the past 14 years. Historical, current, and projected resident enrollment data is provided in the chart below: RESIDENT K-12 ENROLLMENT 5,000 4,000 3,000 2,000 1,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 9-12 6-8 K-5 ECH 5 Mequon-Thiensville Visit us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District Budget School District Report 5

WHERE the MONEY COMES FROM - REVENUE SOURCES State Rules on School Funding: Wisconsin public school districts derive their revenue through four major sources: 1) state aid; 2) property tax; 3) federal aid; and 4) other local non-property tax revenues (such as fees, interest earnings, and rental income). The Mequon-Thiensville School District receives very little general state aid primarily due to high property values. Under current law, there is a limit on the annual amount of revenue each school district can raise through the combination of general state aid, computer aid and property taxes. The Mequon-Thiensville School District revenue comes from the following main sources: Property Taxes 84.3% State / Federal Aid 11.9% Other Local Sources 2.7% Other Sources 1.1% HOW the FUNDS ARE SPENT - EXPENDITURES The Mequon-Thiensville School District general operating expenditures fall into the following five major categories: Salaries; Employee Benefits; Purchased Services; Supplies/Equipment; and Debt/Insurance/Other Miscellaneous. Salaries 53.8% Employee Benefits 22.3% Purchased Services 17.6% Supplies/Equipment 4.4% Debt/Insurance/Other Misc. 1.9% The majority (93.7%) of our operational budget is detailed in the following two categories: Salaries/Benefits: Seventy-six percent of our operational budget is allocated for employees salaries and benefits. In addition to teachers, administrators and support staff, compensation for substitute teachers, seasonal custodial help, coaches/advisors for extracurricular activities, curriculum and staff development and early retirement benefits are also included in this figure. Purchased Services: This includes: 1) Services performed by individuals other than district employees for such things as audit, legal, pupil transportation, custodial cleaning, student tuition payments and speakers/consultants 2) Property-related services such as maintenance projects, utilities, communications, publications, and fuel for buses 6 Mequon-Thiensville School District 2011-2012 District Budget Report

TAX LEVY and RATE INFORMATION The following table details the mill rate required to fund the projected 2013-14 tax levy. Fund 2013-14 Levy Rate* 2012-13 Levy Rate Inc/(Dec) Percent Changes General $35,343,789 8.65 $34,969,404 8.09 $374,385 1.07% Debt Service 2,368,556 0.58 2,364,513 0.54 4,043 0.17% Community Service 227,580 0.05 227,580 0.05 0 0.00% Totals $37,939,925 9.28 $37,561,497 8.68 $378,428 1.01% *The 2013-14 levy rate is illustrated with the assumption that the budget is adopted utilizing the projected tax levy and a 3% decrease in the equalized valuation of property in the Mequon-Thiensville School District. ENROLLMENT and TAXATION HISTORY Year Resident Enrollment Equalized Valuation Tax Levy Percentage Change in Tax Levy Tax Rate/$1,000 Equalized Tax Levy Per Pupil 1999-00 4,017 2,636,693,883 30,862,886 11.70 7,683 2000-01 4,016 3,022,066,920 31,455,051 1.92% 10.41 7,832 2001-02 3,938 3,200,447,843 32,721,963 4.03% 10.22 8,309 2002-03 3,980 3,436,669,403 33,972,893 3.82% 9.89 8,536 2003-04 3,932 3,679,041,699 35,262,223 3.80% 9.58 8,968 2004-05 3,914 4,002,136,393 36,354,766 3.10% 9.08 9,288 2005-06 3,906 4,246,693,443 37,470,563 3.07% 8.82 9,593 2006-07 3,827 4,481,952,659 38,326,546 2.28% 8.55 10,015 2007-08 3,723 4,844,264,583 39,285,513 2.50% 8.11 10,552 2008-09 3,687 4,770,573,610 40,433,861 2.92% 8.48 10,967 2009-10 3,587 4,633,148,080 40,461,776 0.07% 8.73 11,280 2010-11 3,624 4,484,326,853 40,335,694-0.31% 8.99 11,130 2011-12 3,497 4,352,780,656 37,795,126-6.30% 8.68 10,808 2012-13 3,472 4,214,016,365 37,561,497-0.62% 8.91 10,818 2013-14 3,400 4,087,595,874 37,939,925 1.01% *9.28 11,159 *Estimated assuming a 3% decrease in valuation and total tax levy in the amount of $37,939,925. 7 Mequon-Thiensville Visit us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District Budget School District Report 7

BUDGET and TAX LEVY HIGHLIGHTS The 2013-14 budget proposes a total tax levy in the amount of $37,939,925, an increase of $378,428 or 1.01% from the 2012-13 levy. This is the maximum levy allowed by law assuming general aid and student enrollment estimates that will be updated in October. Preliminary information indicates the equalized value of property in the school district will decrease by 3%. Assuming a 3% decrease in property value and total levy in the amount of $37,939,925, the estimated tax levy rate for 2013-14 will be $9.28 per $1000 of equalized property value or an increase of $0.60 from the previous year. Outstanding indebtedness as of July 1, 2013 is $3,250,000 in short-term notes that will be repaid by September 4, 2013 and $14,230,000 in general obligation bonds that will be repaid through 2020. PROPOSED BUDGET for 2013-14 GENERAL FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 7,644,510.00 9,238,734.51 9,963,734.51 Ending Fund Balance 9,238,734.51 9,963,734.51 9,188,734.51 REVENUES & OTHER FINANCING SOURCES Transfers-In (Source 100) 0.00 0.00 0.00 Local Sources (Source 200) 36,341,649.00 36,103,655.00 36,454,756.00 Inter-district Payments (Source 300 + 400) 393,152.00 354,475.00 404,776.00 Intermediate Sources (Source 500) 0.00 0.00 0.00 State Sources (Source 600) 2,639,965.00 2,638,345.00 2,424,583.00 Federal Sources (Source 700) 193,910.00 247,982.00 247,982.00 All Other Sources (Source 800 + 900) 58,024.00 49,000.00 45,000.00 TOTAL REVENUES & OTHER FINANCING SOURCES 39,626,700.00 39,393,457.00 39,577,097.00 EXPENDITURES & OTHER FINANCING USES Instruction (Function 100 000) 19,964,264.00 19,462,494.00 19,625,984.00 Support Services (Function 200 000) 13,247,194.00 14,057,356.00 15,604,201.00 Non-Program Transactions (Function 400 000) 4,821,017.49 5,148,607.00 5,121,912.00 TOTAL EXPENDITURES & OTHER FINANCING USES 38,032,475.49 38,668,457.00 40,352,097.00 SPECIAL PROJECTS FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 36,405.00 48,298.00 48,298.00 Ending Fund Balance 48,298.00 48,298.00 48,298.00 REVENUES & OTHER FINANCING SOURCES 7,427,511.00 7,029,793.00 7,147,796.00 EXPENDITURES & OTHER FINANCING USES 7,415,618.00 7,029,793.00 7,147,796.00 DEBT SERVICE FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 443,806.00 415,337.00 280,366.00 Ending Fund Balance 415,337.00 280,366.00 247,272.00 REVENUES & OTHER FINANCING SOURCES 2,690,784.00 15,951,255.00 2,633,903.00 EXPENDITURES & OTHER FINANCING USES 2,719,253.00 16,086,226.00 2,666,997.00 8 Mequon-Thiensville School District 2013-2014 District Budget Report

PROPOSED BUDGET for 2013-14 (CONT.) CAPITAL PROJECTS FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 0.00 0.00 0.00 Ending Fund Balance 0.00 0.00 0.00 REVENUES & OTHER FINANCING SOURCES 0.00 0.00 0.00 EXPENDITURES & OTHER FINANCING USES 0.00 0.00 0.00 FOOD SERVICE FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 336,557.00 397,089.00 378,089.00 Ending Fund Balance 397,089.00 378,089.00 378,089.00 REVENUES & OTHER FINANCING SOURCES 1,357,288.00 1,372,000.00 1,241,000.00 EXPENDITURES & OTHER FINANCING USES 1,296,756.00 1,391,000.00 1,241,000.00 COMMUNITY SERVICE FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 380,707.00 391,964.00 391,964.00 Ending Fund Balance 391,964.00 391,964.00 380,964.00 REVENUES & OTHER FINANCING SOURCES 833,025.00 850,192.00 853,280.00 EXPENDITURES & OTHER FINANCING USES 821,768.00 850,192.00 864,280.00 PACKAGE & COOPERATIVE PROGRAM FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 Beginning Fund Balance 0.00 0.00 0.00 Ending Fund Balance 0.00 0.00 0.00 REVENUES & OTHER FINANCING SOURCES 19,452.00 0.00 0.00 EXPENDITURES & OTHER FINANCING USES 19,452.00 0.00 0.00 TOTAL EXPENDITURES AND OTHER FINANCING USES ALL FUNDS Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 GROSS TOTAL EXPENDITURES -- ALL FUNDS 50,305,322.49 64,025,668.00 52,272,170.00 Interfund Transfers (Source 100) - ALL FUNDS 4,556,339.49 4,826,454.00 4,831,855.00 Refinancing Expenditures (FUND 30) 0.00 13,237,510.00 0.00 NET TOTAL EXPENDITURES ALL FUNDS 45,748,983.00 45,961,704.00 47,440,315.00 PERCENTAGE INCREASE - NET TOTAL FUND EXPENDITURES FROM PRIOR YEAR 0.46% 3.22% PROPOSED PROPERTY TAX LEVY FUND Audited 2011-2012 Unaudited 2012-2013 Budget 2013-2014 General Fund 35,220,046.00 34,969,404.00 35,343,789.00 Referendum Debt Service Fund 2,347,500.00 2,364,513.00 2,368,556.00 Non-Referendum Debt Service Fund 0.00 0.00 0.00 Capital Expansion Fund 0.00 0.00 0.00 Community Service Fund 227,580.00 227,580.00 227,580.00 TOTAL SCHOOL LEVY 37,795,126.00 37,561,497.00 37,939,925.00 PERCENTAGE INCREASE- TOTAL LEVY FROM PRIOR YEAR -0.62% 1.01% 9 Mequon-Thiensville Visit us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District Budget School District Report 9

ACADEMIC ACHIEVEMENTS OF THE 2012-2013 SCHOOL YEAR The true measure of a great school district is the academic accomplishments produced by students, teachers and administrators on an annual basis. When looking back on this past school year, the residents of the Mequon- Thiensville School District have a great deal to be proud of when reflecting on the academic productivity of their local public schools. In the past year, the district accomplished the following: The district s overall scores on the state-issued Wisconsin Knowledge and Concepts Exam (WKCE) surpassed the state average by 27.1 percentage points in reading and 28.3 percentage points in math. A comprehensive strategic plan was finalized that will drive efforts to move the district toward even greater levels of student performance. The district created a robust data dashboard that will be used to demonstrate progress toward meeting school and districtlevel objectives. Students throughout the district won prestigious state and national honors for their performance in and out of the classroom. District schools received ratings of Exceeds Expectations or Significantly Exceeds Expectations on the new Wisconsin state report card s Overall Accountability Rating measure. The rating is based on each school s Overall Accountability Score. FISCAL RESPONSIBILITY AND ACCOUNTABILITY The Mequon-Thiensville School District continues to face a number of funding challenges due to declining enrollment and a state funding formula that limits revenue to schools based on student enrollment. However, these challenges should not be confused with the financial condition of the school district, which is one of the healthiest in the state of Wisconsin. District officials have been fiscally responsible by making tough decisions to balance budgets annually, never jeopardizing the investment of taxpayers. Some measures of our fiscal health include the following key indicators: 1) Moody s Investors Service has reviewed and affirmed a rating of Aaa for the Mequon-Thiensville School District General Obligation Refunding Bonds. This is the highest rating an agency can receive. The school district is one of just six in the state of Wisconsin assigned a Aaa rating from Moody s. 2) The Mequon-Thiensville School District s outstanding general obligation debt (principal only) as of June 30, 2012 is $16,850,000. The district has consistently paid off debt and is well below the legal debt limit of $418,544,703. Repayment trends are detailed below: Year Ended June 30 Outstanding Principal Retired 2008 $24,259,993 $1,672,420 2009 $22,587,573 $1,922,260 2010 $20,665,313 $1,810,313 2011 $18,855,000 $2,005,000 2012 $16,850,000 $2,095,000 The school district refinanced a portion of general obligation debt in 2013, reducing its average interest rate on payments from 4.00% to 0.9891%. This resulted in total interest savings to taxpayers of $1,296,000 over the remaining life of the obligations. The district will be debt free by 2020. 3) The Mequon-Thiensville School District maintains a healthy fund balance. As of June 30, 2012, the district s general fund balance of $9.2 million represents 22.8% of the district s general and special education fund operating expenditures. District auditors have recommended a reasonable level of fund balance at year-end to be 20-25%. The district is well within audit recommendations and uses fund balance appropriately for one-time capital expenditures not recurring costs. A solid fund balance is critical to the overall financial health of a school district. The district maintains a fund balance sufficient to minimize the need to borrow on a temporary basis for cash flow needs. An increase in fund reserves over the past several years has resulted in the Mequon-Thiensville School District borrowing 39% less for cash flow purposes, or a reduction of $4 million during the 2012-13 school year. 10 Mequon-Thiensville School District 2013-2014 District Budget Report

DISTRICT MAINTAINS HIGHEST POSSIBLE BOND RATING As a result of the district s sound financial practices, Moody s, the bond rating agency, has maintained Mequon-Thiensville School District at the highest rating possible, Aaa. This rating is based, in part, on the general good health of the district s finances. MTSD is one of only six districts in Wisconsin to receive the Aaa rating. COMMUNITY SERVICE FUND The Community Service Fund is used to account for activities that are not elementary and secondary educational programs, but have the primary function of serving the community. Transactions are accounted for in Fund 80. The district adopts a separate tax levy to support these activities. The Mequon-Thiensville School District operates the recreation department for the communities of Mequon and Thiensville and program operations are recorded in the Community Service Fund. All of these activities take place outside of the K-12 instructional and extracurricular arena and are open to the public for participation. The Mequon-Thiensville Recreation Department provides a number of recreational, leisure and enrichment activities for youth and adults. The total budget for 2013-14 is $864,280. Expenditures include compensation of office/management staff; program coaches/instructors/supervisors; custodial services; building/machine rental payments and supplies/ materials for programs. A capital expenditure of $11,000 from Fund 80 reserves is planned in 2013-14 for stage lighting upgrades used in youth drama programs. Seventythree percent of the revenue needed to support this budget comes from program fees, ticket sales and investment earnings. The remaining 27% is supported by the local tax levy. The proposed tax levy for 2013-14 is $227,500. The tax levy for the Community Service Fund has not increased since the 2009-10 fiscal year. Mequon-Thiensville Recreation Department Mission Statement The role of the M-T Recreation Department is to create a closer partnership between school and community through greater utilization of school facilities, resources, and improved community relations. Public schools, an important resource in every community, are an integral part of our recreation programming. Utilizing public school resources, through recreation and leisure programming, expands and enhances lifelong learning opportunities in the community while making maximum use of existing school and community resources. 11 Visit Mequon-Thiensville us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District School Budget District Report 11

BUDGET FREQUENTLY ASKED QUESTIONS (FAQs) The development of a school budget is a complex and challenging process, given limited funding and legislative mandates. The following questions and answers were developed to help readers gain a better understanding of the issues affecting public school finance. Why does the school district face an annual budget shortfall? A shortfall or budget deficit exists when expenses exceed revenue. To eliminate a deficit, the district must increase revenue or reduce expenditures. The largest source of revenue for the MTSD is the local property tax (84%). State law enacted in 1994 places a cap, or limit, on the amount a school district can collect from local property taxes. This limit is directly related to student enrollment. MTSD has experienced declining enrollment for 12 of the past 14 years, and as a result, the district has less tax levy authority and ultimately receives less revenue available to support budget needs. Public school districts are a labor-intensive business. The largest expenditure is employee compensation. Increases in employee compensation, while extremely competitive with our comparables, have exceeded the growth in Mequon- Thiensville s available revenue, causing budget shortfalls or deficits. Until recently, school boards were required to offer teachers a minimum 3.8% annual increase in total compensation (salary and benefits) over the previous year or face going to mediation/ arbitration, where the comparables applied were much higher and there was a risk of higher settlements. Act 10 legislation has allowed more authority to control those costs. Does the school district have the right to increase the tax levy beyond the state-imposed revenue limit? No. Districts may only exceed the revenue limit if voters approve the increase in a referendum. If enrollment declines, wouldn t costs decrease as well? Yes but not proportionately. For 2013-14, the district s taxing authority (revenue) will go down by $10,504 for each full-time resident student we lose over a three-year period, but certain costs are not reduced in proportion to student headcount. For example, a classroom of 22 students has the same fixed costs to function as a classroom of 25 students, but having three fewer students in that classroom would result in the district losing $31,512 in revenue over a three-year period. Similarly, there is no cost savings to operate a bus transporting 70 students versus 76 students. The preliminary state budget has provided for no increase in the per pupil amount for 2013-14 school year. 12 Mequon-Thiensville School District 2013-2014 District Budget Report

Can the school district increase student fees to cover the annual deficit? The Wisconsin Constitution limits a school district s authority to assess fees except under limited circumstances, providing that public schools shall be free and without charge for tuition to all children between the ages of 4 and 20 years. Courts have ruled that schools may charge fees for books and items of a similar nature, except in cases of indigence, and for social and extracurricular activities because they are not necessary elements of a high school career. Schools may not charge for instructional time, such as teacher salaries, apparatus, building costs or maintenance. Any course that is credited for graduation, even if it is not required for graduation, must be provided without charge. Could the school district use fund reserves to balance the budget? That would be unwise to do on a regular basis. School district fund reserves are maintained for cash flow purposes (to minimize the expense of short-term borrowing) and to provide for unplanned expenditures. Using fund reserves to balance budgets is a borrowing technique that does not address the financial situation. Operating budgets include recurring costs that must be funded annually from a recurring source of revenue. Declining fund reserves would have a negative impact on the district s long-term financial position, resulting in lower credit ratings that increase the cost of borrowing. The district is using $775,000 of fund reserves in 2013-14 to help offset the cost of the one-time security renovations. 13 Visit Mequon-Thiensville us online at http://www.mtsd.k12.wi.us School District Mequon-Thiensville 2013-2014 District School Budget District Report 13

BOARD of EDUCATION (l to r): Kathryn Houpt, Clerk; Cheryle Rebholz; James Liska, Treasurer; Suzette Urbashich; Gary Laev; Stephanie Clark, Vice President; Mary Cyrier, President Public Notification of Nondiscrimination Policy The Board of Education does not discriminate on the basis of any characteristic protected under State or Federal law including, but not limited to race, color, age, sex, creed or religion, handicap or disability, marital status, citizenship status, veteran status, membership in the national guard, State defense or reserves, sexual orientation, national origin, ancestry, arrest record, conviction record, use or non-use of lawful products off the District s premises during non-working hours, or any other characteristic protected by law. The District Administrator shall appoint and publicize the name of the compliance officer whose responsibility it will be to ensure that Federal and State regulations are complied with and that any inquiries or complaints are dealt with promptly in accordance with law. S/He shall also ensure that proper notice of nondiscrimination for Title II, Title VI, Title VII, Title IX, Section 504, and the Age Act is provided to students, their parents, staff members, and the general public. 111.31, 118.20, Wis. Stats. 42 U.S.C. 2000e et seq., Civil Rights Act of 1964 42 U.S.C. 12112, Americans with Disabilities Act of 1990 29 U.S.C. 701 et seq., Rehabilitation Act of 1973 20 U.S.C. 1681 et seq., Title IX Any questions concerning this policy should be directed to: Dr. Demond Means, Superintendent Mequon-Thiensville School District 5000 W. Mequon Road Mequon, WI 53092 262-238-8502 Rev: 3/1/11 14 Mequon-Thiensville School District 2013-2014 District Budget Report

MEQUON-THIENSVILLE SCHOOL DISTRICT 2013-14 SCHOOL CALENDAR September 3 FIRST DAY OF SCHOOL September 5 Observance No School K-12 November 26 No School K-8 November 27, 28 & 29 THANKSGIVING RECESS No School K-12 December 5 No School 9-12 December 20 Last Day of School Before Winter Break January 2 School Resumes February 14 & 17 No School K-12 March 13 No School K-12 April 11 Last Day of School Before Spring Break April 21 School Resumes May 26 MEMORIAL DAY No School June 12 LAST DAY OF SCHOOL See website for detailed calendars. Visit us online at http://www.mtsd.k12.wi.us Mequon-Thiensville School District 15

MEQUON-THIENSVILLE SCHOOL DISTRICT 5000 West Mequon Road Mequon, Wisconsin 53092 Non-Profit Org. U.S. Postage PAID Thiensville, WI Permit No. 8058 Resident Mequon-Thiensville 53092 & 53097 ANNUAL MEETING AGENDA The Mequon-Thiensville School District Annual Meeting will begin at 7:00 p.m. on Monday, July 22, 2013. The meeting will be held in the Range Line Conference Room located at 11040 N. Range Line Rd., Mequon, WI 53092. 1. Call to Order 2. Election of Chairperson 3. Approval of Minutes of Last Annual Meeting 4. Report from the District Superintendent 5. Report of the Treasurer 6. Presentation of the Proposed School Budget and Recreation Program Budget for 2013-14 7. Discussion and Questions Concerning the Proposed 2013-14 Budget 8. Levying of 2013-14 School Tax 9. Action to Authorize School Board to Establish Date for 2014 Annual Meeting 10. Other Business 11. Adjournment VOTER ELIGIBILITY U. S. Citizen Age 18 or Older on July 22, 2013 School District Resident at Least 28 Days Prior to Annual Meeting WHY SHOULD YOU ATTEND the SCHOOL DISTRICT ANNUAL MEETING? To hear and participate in discussion of the 2013-14 school district budget To help the district formulate educational policy To vote on the 2013-14 school district levy