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Dear Beachwood Residents,

Beachwood City Schools’ 2013 Popular Annual Report highlights our students’ academic achievements, contains a profile of our district and its offerings, and reports our district’s financial data for Fiscal Year 2013. It is available on our web site at beachwoodschools.org.

The following pages provide a synopsis of this Annual Report with snapshots of information that are most significant to Beachwood taxpayers. On these pages, you’ll see that your schools are in excellent financial health. With more than $5 million in operating efficiencies since the district’s last operating levy in 2005, Beachwood’s tax rate is still one of the lowest in the area. Meanwhile, Beachwood’s children continue to excel as we expand academic programming. Our 109.0 Performance Index on the 2012-2013 district report card was our highest ever.

Thank you for taking a few minutes to browse this report and for this community’s continued and unparalleled support of its children and schools.

Dr. Richard A. Markwardt Superintendent

Michele E. Mills Director of Finance/Treasurer

BOARD OF EDUCATIONDr. Brian Weiss, PresidentMitchel E. Luxenburg, Vice PresidentDavid B. Ostro, MemberJoshua Mintz, MemberSteve Rosen, Member

ADMINISTRATIONDr. Richard A Markwardt, SuperintendentMichele E. Mills, Director of Finance/TreasurerRobert P. Hardis, Assistant SuperintendentLauren J. Broderick, Director of Pupil ServicesKen Veon, Director of Curriculum & TechnologyKathleen Stroski, Assistant Treasurer

Beachwood Schools 2013Beachwood City School District Annual Report Summary For Fiscal Year Ended June 30, 2013

Annual Report

DISTRICT PROFILEEnrollment: 1,584 students Average Class Size: 122 students (per grade) Pupil/Teacher Ratio: 11.4-to-1 Faculty: 160 certificated teachers, 84% with Master’s degrees and/or PhDs Average Teaching Experience: 11.6 years (in Beachwood) Advanced Placement: 23 AP courses; 2013 recognition by College Board

2012-2013 DISTRICT REPORT CARDPerformance: • 109.0 Performance Index is the highest in the district’s history • Ranked 4th among Cuyahoga County’s 31 public school districts • Ranked 16th among Ohio’s 611 public districts • Ranked 19th among Ohio’s 871 reporting public and private districts Indicators: • 26 out of 26 Indicators Met Progress: • ‘A’ in Overall Value-Added • ‘A’ in Gifted Value-Added (Ranked 5th in state) • 100% of students scored proficient or higher in OGT reading and 4th grade OAA reading

ACADEMIC HIGHLIGHTSSee the following pages for the Beachwood City Schools’ academic highlights for the 2012-2013.

FINANCIAL REPORTSSee the following pages for a summary of Beachwood City Schools’ financial reports for Fiscal Year ended June 30, 2013.

The Beachwood City School District has not had an operating levy on the ballot since 2005 and is one of only four school districts in Ohio with Moody’s Aaa credit rating.

Beachwood Schools

Class of 2013• Classsize:121students• 99%graduationrate• 95%pursuingpost-secondaryeducation• Awardedmorethan$5.4millioninscholarships• 6NationalMeritFinalists;6NationalMeritCommendedStudents; 2NationalAchievementOutstandingParticipants

Academics: Beachwoodstudentsinallgradelevelsexcelledinregional,state,nationalandglobalcompetitionsinscienceandrobotics,math,writing,speechanddebate,worldaffairs,marketing,culinaryarts,finearts,athleticsandtechnology–amongmanyothers-including:• ABHSstudenttook1stplaceinthestateinspeechanddebate;ThreeBHS

studentswonbestdelegateataModelUNconference;andamarketingstudentplacedinthetop10attheInternationalDECAconference.

• 5BHSstudentsearnedperfectACTscores.• A3rdgraderqualifiedforthenationalvocabularybee;An8thgrader

qualifiedforthestategeographybee.• ThreeteamsfromBMSandHilltopfinishedinthetop20intheworldatthe

DestinationImagiNationGlobalFinals.• BHS’sAcademicChallengeteamfinishedinthetoptwoinnationforthe

thirdconsecutiveyear.5thgradeand6thgradetriviateamseachplaced1stinOhio.

• NewsweekmagazineratedBeachwoodHighSchoolthe#2highschoolinNortheastOhio.

Fine Arts:Beachwoodstudentsshowcasedtheirvisualandperformingartstalentsinthegreatercommunity.StudentartworkwasdisplayedattheClevelandMuseumofArtandHopkinsInternationalAirport,whileorchestrastudentsperformedateventsatClevelandMetroparksZooandCedarPoint.Beachwoodwasagainnamedamongthenation’sBestCommunitiesforMusicEducation.

Athletics:• Awrestlerwonthestatechampionship.• Theboystennisteamandgirls4x100relaytrackteameachcompetedatthe

statefinals.• TheboysandgirlsbasketballteamseachwonDistrictchampionships.• Thebaseballteamwonitssecondconsecutiveconferencechampionship.• Asoccerplayerwasoneofjust33ScholarAll-Americans.

Social Conscience: Studentsateachofourschoolsparticipatedinprojectsandeventsthatcelebrateourcommunity’srichculturalandsocialdiversity,anddemonstratecompassionandrespectforallmembers.

2012-2013 ACADEMIC HIGHLIGHTS

PROPERTY TAXESProperty tax dollars collected for the general fund from operating levies are used to pay for day-to-day operating expenses of the District, including salaries, benefits, utilities, books, materials, and equipment.

• The District levied and collected 35.25 mills for residential property, and 42.25 mills for commercial property.

• Beachwood has not had an operating levy on the ballot since 2005.

View the complete Annual Report at www.beachwoodschools.org.

2013 Annual Report

NET POSITION• Equity in Pooled Cash and Cash equivalents decreased

by $10,848,011 due to payments to contractors for the Beachwood High School building project.

• Accrued wages and benefits remained relatively flat.

REVENUE• The District’s revenues increased by

9.3 percent over 2012 due primarily to the District receiving unbudgeted revenue from the settlement of litigation regarding the valuation of real property.

• Program Revenues ($7,373,118) are for specific program areas and comprise 16 percent of the District’s total revenues.

• General Revenues ($38,607,807) account for 84 percent of all revenues. The largest portion of general revenues is property taxes levied on commercial and residential properties. Grants and Entitlements are from the State of Ohio and the federal government.

Governmental Activities 2013 2012

AssetsCurrent and Other Assets $61,777,555 $71,065,301 Captial Assets 59,934,185 45,768,048 Total Assets 121,711,740 116,833,349

LiabilitiesLong-term Liabilities 44,145,234 47,070,449 Other Liabilities 4,256,927 5,925,001 Total Liabilities 48,402,161 52,995,450

Deferred Inflows of ResourcesProperty Taxes 25,206,963 22,611,659

Net AssetsNet Investments in Capital Assets 18,082,152 18,670,053 Restricted 7,697,202 3,818,435 Unrestricted 22,323,262 18,737,752

Total Net Position $48,102,616 $41,226,240

2013 2012 2011 2010Program RevenuesCharges for Services and Sales $4,346,756 $3,920,001 $4,432,301 $3,900,838

Operating Grants and Contributions 3,026,362 3,190,174 3,368,012 2,726,566

Capital Grants and Contributions - - - -

General RevenuesProperty Taxes 27,450,186 28,034,000 26,914,433 23,881,579

Grants and Entitlements 5,647,472 6,385,851 6,845,143 6,141,675

Investments 73,323 221,860 332,985 252,177

Other 5,436,826 298,808 250,458 246,727

Total Revenue $45,980,925 $42,050,694 $42,143,332 $37,149,562

OPERATING LEVY CYCLESLocal School District

Operating Levies 2005-2012

2005, 2008, 2012 Rocky River

2005, 2007, 2008, 2010, 2011, 2012 Aurora

2007, 2008, 2011, 2012 Brecksville-Broadview Heights

2005, 2008, 2012 South Euclid-Lyndhurst

2008, 2012 Mayfield

2007, 2012 Chagrin Falls

2007, 2011 Cleveland Heights-University Heights

2006, 2010 (failed), 2011 Hudson

2011 Orange

2011 Independence

2006, 2010 Shaker Heights

2005, 2010 Solon

2006 Westlake

2005 Beachwood

Beachwood Schools 2013 Annual Report

Beachwood Board of Education 24601 Fairmount Boulevard Beachwood, Ohio 44122

View the complete Annual Report at www.beachwoodschools.org.

EXPENSESGovernmental Activities totaled $39,104,549, a slight decrease of 1.1 percent from Fiscal Year 2012 (from government-wide statements), primarily due to flat salaries in FY13. The primary expenses include classroom instruction, instructional support, transportation, and extracurricular activities. Each of these expense categories includes salaries, benefits, purchased services, supplies, and capital outlay. For example, costs for administration include administrative staff support, office supplies, and equipment, in addition to the cost of administrators. The following chart shows what percentages of the program expenses are spent on each of the various groups necessary to educate students.

36.3% Support Services

51.3% Instruction

5.3% Debt Service

4.0% Operation ofNon-Instructional Services

3.1% Extracurricular Activities

LONG-TERM PROJECTIONSFunding for public education continues to be under siege as the school choice proponents try to expand voucher programs for all Ohio students irrespective of the quality of their local public schools. Beachwood Schools already receives very little in state funding for education – less than $553 per pupil. The state voucher bill requests taking more than $5,500 per pupil away from the District to direct it to private/non-public schools. Ohio school choice program is already recognized nationally for its lack of oversight of academic expectations and fiscal operating standards.

The State has put public schools on notice that we must change our methods of doing business to achieve greater operational efficiencies, including tracking teacher and student performance and rewarding staff members accordingly. Beachwood Schools will continue to be innovators and will plan for the future with the focus on students remaining the crux of every decision.

Moody’s Investor Service confirmed the district’s Aaa credit rating. Beachwood Schools is one of only four school districts in the State of Ohio to be awarded this rating.