N THE REMARKER NEWS MARCH 6, 2015 PAGE 4 F I N A N C E S AT ST. M A R K ’ S
Debt free? In light of the Board of Trustee Finance Committee’s recently announced goal to eliminate all debt in the coming years, The ReMarker investigates how the school’s endowment and asset-to-debt ratio stack up.
O
utstanding debt and weak balance sheets just aren’t problems here because the school has historically had such a high assets to debt ratio, says Finance Committee Chair Jeff Hillier ‘76. But as of this year, the Finance Committee has made plans to eliminate all debt in the next ten to 15 years. The only debt that remains to be paid off is from the Nearburg and Hicks package from the year 2000. Originally, the school took on $18,420,000 of debt to construct the two buildings. However, over time $4 million of the debt was paid off, lowering the total to $14,185,000. Now, the finance committee plans to pay off $10 million this August, leaving a balance of $4 million. The committee has added about $285,000 to the school yearly operating budget to refinance the final $4 million in an effort to eliminate the debt. “That’s an amount that we are comfortable will not impact the program at all, it’s not like we’re going ot have to cutback a program
or anyone’s salary,” Hiller said. “We are very comfortable that the budget can support that without interrupting the day to day operations of the school. Each time the school breaks ground on a new building, it has either a collection of pledges or cash in hand equal to the cost of the building. “Our goal is to pay for the buildings when we build them,” said Suzanne Townsend, director of Finance and Administration . “Even if its over the period during which the pledge is being paid, we still know they’re going to be paid. We don’t have doubt about that.” The school remains prudent in matters of debit, according to Townsend. “It’s wise to have your money in hand,” she said. Because the school’s assets are so much greater than its debts, the school is very flexible financially. “We can pay off debt that frees up the
money to go to program and to expand our program, or to build buildings, or to increase faculty compensation,” Hillier said. “We can do all those positive things instead of being saddled with a lot of debt payments.” Because of the school’s endowment involvement, about 25 percent of the operating budget is covered by the Endowment fund. The Endowment Fund also helps lower the cost of learning for each individual student. “If you take our 30 and a half million dollar budget and divide by 850 guys that’s about a $36,000 per year, that’s the cost of educating all you guys,” Hillier said. “Tuition is only $26,000 on average, so there’s a $10,000 scholarship if you will as a result of the endowment and the annual fund.” “The benefit there is it helps us to hold down tuition costs, so we’re very fortunate in that regard and I think we’re in a lot better shape than a lot of our peer schools,” Hillier said. “Our ratio of assets to debt is just very
enviable. There are not many secondary schools that https://www.facebook.com/tinsley.silcox?fref=ts are in that position.” The school wants to keep debt at a very low level in order to not only give the school more financial flexibility but also to set the school up for success in the future. “When we build a building, we build a building that will last for a hundred years,” Townsend said. “And a hundred years from now, we want the school to be in such a situation that it’s not burdened by massive debt that future Marksmen and the community will have to deal with. That’s just the prudent way to operate going forward.”
KEY
Endowment
components by percent
—statistics courtesy Business Office
Financial Aid Faculty Support Sustaining Program Support Awards
STORY BRADFORD BECK, SHOURYA KUMAR | ILLUSTRATIONS ZUYVA SEVILLA
James O’Donnell, master of the choristers of Westminster Abbey visits as Dennard Visiting Scholar guest speaker by Bradford Beck Organist and Master of the Choristers at Westminster Abbey in London, England, James O’Donnell, visited March 2-4 and played a recital on the Roosevelt Family Pipe Organ. O’Donnell was chosen to be a Dennard Visiting Scholar by the Visiting Scholar Student Advisory Board, which is comprised of class representatives, class presidents and other students that have applied. The school’s connection with O’Donnell began when the choir visited London in the summer as O’Donnell’s special guests. O’Donnell has many of the qualities that Morrison looks for in potential Visiting Scholars. “A Visiting Scholar must be an expert in his or her field,” Morrison said. “He or she must be a dynamic speaker, and it is great when that person has interacted with St. Mark’s students or the St. Mark’s community in the recent past.” After receiving nominations from faculty, staff, parents and alumni, the Student Advisory Board gives their input to Marjorie Morrison, head of the Visiting Scholar Program, and then meets with Headmaster David Dini, who makes the final decision. “The best nominations are from members of the community that have heard a person speak who is considered an expert in his or her field and who loves working with young people,” Morrison said. Morrison hopes students can gain new insight through O’Donnell’s visit. “I hope that his talk with Upper School
students will enrich their education and give them some insight into a world with which they may not be familiar,” Morrison said. Morrison also hopes the students can truly appreciate O’Donnell’s performance and his ability as a musician. “I hope that students and all members of the St. Mark’s Community appreciate the magnificence of the music he plays at his evening recital on the Roosevelt Family Pipe Organ.” Morrison sees the opportunity for students to have access to an expert as the best part of the Visiting Scholar Program. “Allowing them James O’Donnell to interact with these noted scholars in • Master of Choristers at Westminster various settings, Abbey. both casual and • His choir performed at wedding of Duke formal, is what it’s all and Duchess of about,” Morrison said. Cambridge. “Whether chatting • Directed the music for a service in the with the scholar at presence of Pope lunch, working with Benedict XVI. the scholar in a small group setting or asking questions at the end of an assembly, the boys have multiple opportunities to access these experts and get a feel for what their lives and work are like. These experiences are truly remarkable.” O’Donnell is widely known for his solo performances and skillful directing of various choristers and orchestras.
Do you wish to improve your Spanish speaking skills? Planning to travel this summer to a Spanish-speaking country? Do you want to do better on your next Spanish test? I can help. I have eighteen years of experience teaching at ESD in both Middle and Upper school, was educated in Madrid, Spain and am fully bilingual.
Contact Joanne Donheiser at donheiserj@gmail.com.
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