1. Opening the meeting
A. Call to Order, Roll Call, Pledge of Allegiance
2. Recommendation to permit Board member(s) to participate electronically
3. Recognition of Visitors/Communication to the Board (Goals 2,4)
4. Question/Answer Session (Goal 4)
Mr. Kirkus presented the following changes to the budget.
Summary of changes from Tentative FY21 budget to Final FY21 budget
Total expected direct revenues were projected down by about $137K in the final budget as compared to the tentative budget. These changes are primarily due to changes in anticipated tax revenue and food service program revenue, and increases in federal funding related to Coronavirus.
Total expected direct expenditures were projected up by $2.2M dollars. The changes include increases to the Capital Projects fund budget of approximately $1.1M dollars, and approximately $550K in additional expenditures in both the Operations and Maintenance (O&M) fund and the Education fund (Ed fund) - many of which were related to Coronavirus. In fact, since July 1st the district has already expended or encumbered $436,595 that can be tied back to the pandemic from these two funds - about half of which is for additional student technology.
The revised expenditures in the Capital Projects fund will allow us to pay off any remaining balances on our recent projects, and provide us with approximately $2M in the Capital Projects fund to begin work on projects for next year. A transfer of $1M from the O&M fund into the Capital Projects fund is budgeted, and will be required in order to maintain an adequate balance in the Capital Projects fund.
In addition to the transfer of $1M from O&M to Capital Projects, we have also budgeted a second transfer of $1.2M from the O&M fund to the Debt Service fund to make payment on our outstanding debt certificates. Payments are made in December and June of each year on our debt certificates. The December payment includes principal and interest and this year it will be $973,600 and the June payment is interest only and will be $163,850. After these payments are made our outstanding debt certificate principal will be $7,830,000. The debt certificates will be paid in full as of 12/1/2028.
Both of these transfers will be brought to the Board for approval next month at the October Board of Education meeting.
Finally, the budget shows a slight deficit of about $215,608 according to the ISBE calculation on page 17 of the printed budget. The budget does include significant contingency amounts totalling $850K in the operating funds which we are unlikely to spend, so this small operating deficit is effectively neutralized.
Although the budget does not include a structural deficit, it does project an overall fund balance decrease of $4.3M, $3.5M of which is from capital spending, most of the rest is from paying down our debt. We started the year with $38.6M in the bank, and we expect to end the year with around $34.2M.
Total direct revenues are budgeted at $55.8M and expenditures for FY21 are budgeted at $60.1M.