Tuesday, May 7, 2013
School Board members present: Kari Bradley, Conrad Smith
Administration present: Keith Gerritt, principal; Stephanie Taylor, assistant principal; Lori Bibeau, WCSU business manager
Meeting convened at 8:00 am.
Lori Bibeau focused on payroll expenses last month. Personnel costs are roughly 70% of overall budget. Leaves of absence can have positive or negative impacts on expenses against budget. Year end projections for payroll adjustments show a net savings. However Lori projects a deficit associated with unbudgeted/unplanned bussing expense for two students going to cosmetology program in Essex. The school may be reimbursed $14,844 by state which we should know within a month. The net adjustment for May is a deficit of approximately $2,000 and currently the fund balance projected to be $644,327.
We then discussed the Capital Fund. We are running surplus for the current year due to deferring the gym acoustics project. For next year, the expected capital fund budget proposal is $436,260, less than previously projected due to low bid on roof project. The Board will consider the capital budget at its next meeting.
We are expecting a loss of approximately $9,000 from the Food Services operations with some projected savings from a recent resignation. The State recently monitored Food Services operation for nutrition, menu, etc. and awarded an A+. The administration recommends not increasing meal prices at this time
Capital Fund Budgeting- The schools two bonds will be paid off in FY19-20 and FY21-22. The Bond Bank refund (refinance) put the savings in specific years (FY12-14, 17, 21). We are projecting roughly $500,000 for the annual capital budget (which is approximately depreciation expense). We posed several questions:
· Is that the right amount for future years?
· How will we fund capital budget in future?
· How much to hold in reserve capital budget?
We identified six options for addressing capital budget
- Draw down capital budget reserve
- Budget and spend less for capital expenses
- Increase allocation from annual budget
- Lower the 4% fund balance threshold for end of year reserves and divert excess to capital budget
- Request public vote for special article
The school treasurer not authorized to write checks without board orders. With upcoming summer break for the board, the administration is asking for authorization to issue checks without prior approval. The board will approve orders at subsequent meeting. This is common practice throughout the state.
Next meeting: June 18, 2013
July: No Finance Committee meeting. August 13, 2013 meeting: Lori will be out, Keith will lead
The Board may want to direct administration as to what to do with fund balance (ie: transfer funds above 4% to capital budget). This will be considered at the June board meeting. The committee should notify at next board meeting.
Submitted by Kari Bradley