Agenda Item
Meeting Date: 10/21/2020 - 7:00 PM
Category: New Business
Type: Action
Subject: 12.1 FY21 Second Budget Revision
Strategic Plans:
Enclosure:
File Attachment:
Second Budget Revision FY21.pdf
Public Notes: The second budget revision is being provided to reflect additional accounting code changes required by DESE, the tax rate set by the BOE in August including the $0.10 transfer from Fund 3 to Fund 1, the final BOE AV numbers, staff movement on the salary schedule after completing summer graduate hours, the hiring of vacancies, updated enrollment numbers after school started for the 2020-2021 school year, including summer school, and finally, costs associated with COVID-19.

When the preliminary budget was approved in June, 2020, an overall deficit was anticipated in the Incidental, Teachers, and Capital Projects funds of ($822,448). The current Second Budget Revision projects a deficit of ($595,991) in the same funds.

The budget revision contains the following items which resulted in the above change in position.

• An increase in total Assessed Valuation of 3.73%; the preliminary budget projected an increase of 3.5%
• Placement of all staff on salary schedules based on additional training and experience; the preliminary budget projected the cost to be $50,000 and actual cost was $42,223.
• The revision includes $270,456 of additional local revenue which was a result of the voter approved $0.10 transfer from Fund 3 to Fund 1, $165,551 additional local revenue as a result of new construction, and $167,988 from the 3.73% increase in AV.
• The revision includes a reduction in summer school ADA of 21.26. The preliminary budget included a projected summer school ADA of 58.00 but due to COVID-19, actual summer school ADA was 36.74. Per the DESE September payment transmittal, the district is receiving $4,495.4680 per ADA which was approximately a $95,000 reduction in basic formula funding.
• Enrollment was updated to include a reduction of 21 students; however given that basic formula payment is based on current year or the higher of the two proceeding school years, the reduction in enrollment did not negatively effect the basic formula payment.
• The budget revision also includes a “withholding” in basic formula (state funding) of $384,781.84 or 96.6% funded. In the second budget revision, basic formula and Classroom Trust fund receipts total $11,002,530; however, per the DESE Basic Formula Calculation, 100% payment would be $11,387,311.84 (per September payment transmittal). This will be monitored closely.
• Due to COVID-19, there are nearly $200,000 of additional costs which include PPE, virtual personnel, technology, software, etc… Approximately $60,000 of these costs have been off-set with CARES funds provided by the City of Smithville. The district is in the process of completing a FEMA disaster assistance grant for up to 75% of these costs which has not been included in the budget revision.
• Due to COVID-19, all fall revenue for activities has been removed but activity revenue for winter and spring activities remain at the time of the revision.
• Due to COVID-19, substitute costs have been increased 20% to reflect possible staff absences.
• Restructuring of financial accounting coding to reflect expenditures by building location.
• Adjustments to revenue and expense accounts based on past three years historical trends.

This budget represents guidelines for the financial operation of the district during the 2021 fiscal year, and as such your study and discussion of this budget are encouraged and appreciated. In the Budget Summary section of this document, a three year comparison is included for all revenue and expenditure line items to give a historical vs current projections perspective. Administration will continue to closely monitor and inform the Board of progress on anticipated receipts and expenditures. Please contact us if you have questions regarding the information contained in this document.
Funding :
Exec. Summary
Recommendation: To approve the FY21 second budget revision as presented.
Approvals:
Recommended By:
Signed By:
Wayne Krueger - Financial Consultant
Signed By:
Dr. Todd Schuetz - Superintendent
Vote Results:

Original Motion
Member Sarah Lamer Moved, Member Len Matthies seconded to approve the Original motion 'To approve the FY21 second budget revision as presented.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 7 Nay: 0.
The motion Carried 7 - 0
   
Denney Fales     Yes
Sarah Lamer     Yes
Ian Saxton     Yes
Wade Kiefer     Yes
Len Matthies     Yes
Scott Haggerty     Yes
Susan Whitacre     Yes