July 7, 2021 at 5:30 PM - Budget Committee
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I. CALL TO ORDER
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II. ROLL CALL
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III. APPROVAL OF AGENDA
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IV. PUBLIC COMMENTS
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V. 2021-2022 BUDGET PLANNING
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V.A. Timeline
Description:
The purpose of this agenda item is to discuss the next steps in the 2021-2022 budget process. Attached please find the budget timeline. Please note that the Third Draft of the Budget will be presented at the regular July Board Meeting. Please also note that the July Board Meeting includes a public hearing where the District provides a high level overview of the budget planning process and the public can ask any budget-related questions.
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V.B. Legislative Update
Description:
The purpose of this agenda item is to provide an update on the legislative process for the 2021-23 State Budget. Administration will provide the most recent information at the meeting and will review how this information correlates to our 2021-22 budget planning process.
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V.C. Review Third Draft of 2021-22 Budget
Description:
Administration will be preparing the Third Draft of the Budget on Tuesday, July 6th, when Steve Summers returns from surgery. The Third Draft will be added to the Budget Committee BoardBook by the end of the day on the 6th.
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V.C.1. Review Estimated Salary Increases
Description:
The first payroll of the 2021-22 fiscal year is July 15th. The employee groups receiving paychecks on July 15th include: Administrators/Admin Support, Administrative Assistants and Custodial/Maintenance. The School Board approved pay increases for all of these groups at the May Board meeting. Attached please find a pay increase document with both a $600 teacher point option and a $900 teacher point option. Both options result in a total salary and benefit increase that is higher than the funds that were originally allocated. At the June meeting, the School Board approved reallocating $143,442 from post employee benefits to salary increases. The $143,442 is a result of a decrease in the District's required contribution to our Fund 73. The $600 teacher point option is lower than the current allocated salary amount while the $900 teacher point option is higher than the current allocated salary amount.
Administration will be requesting approval of the teacher points option at the July regular School Board meeting, so that the teacher salary can be finalized before their first payroll of the 2021-22 fiscal year. The HR Committee will be meeting on July 7th at 4:30 PM to review teacher compensation options. I will provide an update to the Budget Committee at the meeting.
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V.D. Review Moody's Credit Report / Fund 41
Description:
The purpose of this agenda item is to review the Moody's credit report that was issued April 16, 2021. Moody's downgraded the District's credit rating from A1 to Aa2, which is a drop of 2 credit ratings. The two major reasons for the downgrade were the District's fund balance and cash flow. The School Board has purposely decreased the Fund 10 fund balance while increasing the Fund 41 fund balance. Attached please find the Moody's credit rating, the School Board policy on Fund 41, and a Fund 10/41 fund balance spreadsheet. Also please find attached a revised School Board policy on Fund 41 and an option for the 2021-22 budget regarding Funds 10 and 41.
The revised School Board policy on Fund 41 would result in a shift in Capital Maintenance funds from Fund 41 to Fund 10. The budget option results in the Capital Maintenance expenditures coming from Fund 41 while the property tax revenues are deposited into Fund 10. This plan would result in the District spending down Fund 41 over the next several fiscal years, while building up a Fund 10 Fund Balance for Capital Maintenance expenditures. This plan would address the Fund Balance concerns raised in the Moody's credit report. Administration will be requesting feedback from the Budget Committee on this option.
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VI. DISCUSSION/ACTION ON PROPOSALS
Description:
There are no proposals to review this month.
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VII. OTHER ITEMS FOR DISCUSSION
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VII.A. Fund 73 Fund Balance Information
Description:
The Budget Committee requested additional information on the Fund 73 Fund Balance. The Fund 73 Fund Balance as of June 30, 2020 was $6,605,582.82. The Fund 73 Fund Balance comprises an account with MidAmerica that is in individuals' names. This account totals $4,882,315.36. The second account with MidAmerica is in the District's name and this account totals $1,715,764.12.
The account that is in individuals' names is considered a health reimbursement account and this account is funded per the School Board approved employee handbooks. |
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VII.B. Staff Development Costs/Budgets
Description:
The Budget Committee requested additional information on the topic of Staff Development costs/budgets between the District budget and the building/departmental budgets. Attached please find reports from the District financial system on the District staff development budget, and the District grant staff development budgets. As you can see, the majority of staff development budgets come from District grants.
In reviewing staff development costs/budgets for buildings/departments, I have realized that a variety of different account codes are being used, and we are not able to provide a Skyward financial system report. However, we have pulled out the information for each building/department as follows:
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VIII. FUTURE AGENDA ITEMS
Description:
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IX. ADJOURN
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