MARYSVILLE — In his report to the Marysville Exempt Village School District Board of Education at its regular meeting Thursday, District Treasurer/CFO Todd Johnson did not paint a pretty picture in his five-year forecast, pointing out that planned spending for the fiscal 2023 is already exceeding revenue, and that by 2027, the district’s expenses will exceed its revenue by $17.4 million.
Revenues are expected to remain stable over this five-year period, while expenses will increase steadily over the same period. Mr Johnson cited loss of revenue from tangible personal property tax, cuts to state funding and inflation as factors in his projections.
Mr Johnson and the finance committee presented two options the board could consider in the future, both of which are tax levies. Citing the pressing need for revenue, it was recommended that a levy (if there is to be one) should appear on the May 2, 2023 ballot on election day so that it can be implemented as soon as possible. .
The first option is a $7.9 million emergency levy that will generate $8.5 million a year, but if the Council goes that route it will likely be back on the ballot within three years. The second option presented is an emergency levy of 9.9 million with the stipulation that there would be a four-year pause before requesting new funds. This second option would generate $10.7 million per year in revenue for the district.
In order to obtain a levy in the May 2, 2023 ballot, the MEVSD BOE must have the measurement certified by the County Auditor and Board of Elections no later than January 20, 2023.
The board took no action on the information at Thursday’s meeting, but scheduled a special meeting for Wednesday, Nov. 2 at Early College High School beginning at 4:30 p.m. The only topic of discussion at this meeting will be the royalty and the public is encouraged to attend and share their comments with the board members. Board chair Sue Devine said a resolution considering a levy should be on the agenda for the BOE’s regular meeting on Nov. 17.
In another action, Marysville/Union County Economic Director Eric Phillips was on hand to address a new commercial development that sits within the MEVSD boundary in the far southeast corner of the city. Hardy World Construction is taking advantage of the Community Reinvestment Area and planning a new 120,000 square foot building on nine acres along Industrial Parkway and applying to MEVSD for a 10-year 75% tax abatement on property taxes. Since this construction falls under multiple legislative districts, the reduction must also be approved by the Ohio High Point Career Center School Board, Union County, the City of Marysville, and the County Port Authority of Marysville/Union, all of which will share some tax revenue.
Mr. Phillips has already made this presentation to the county and the city about it, which met with their approval, while it has yet to be presented to the Ohio Hi-Point Career Center BOE and the Port Authority of Marysville County. /Union. But given that the land in question currently generates about $250 in taxes per year, neither entity has shown any reluctance to adopt the measure.
As the planned construction is at the very end of the Marysville District line and will have no significant effect on school traffic, enrollment, or the general operation of the District, the resolution passed by a vote of 5 to 0. Mr. Phillips said that with the move, the district can expect to make around $10,000 a year from construction.
Again, the MEVSD school board called a special meeting at 4:30 p.m. on November 2 at the ECHS for the express purpose of discussing a tax levy.
Next meeting of the Board in ordinary session on Thursday, November 17 at 6 p.m.