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Board adopts May five‑year forecast and funds initial phase of 20‑year capital plan
Summary
Willoughby‑Eastlake City Schools adopted its May 2025 five‑year forecast and approved a one‑time transfer to start a board‑approved 20‑year capital plan. The board also approved related consent items that suspend the district cash‑balance policy for fiscal 2025. Voting was unanimous, 5–0.
The Willoughby‑Eastlake City Schools Board of Education on May 12 adopted its May five‑year forecast and approved a one‑time transfer to fund the initial phase of a board‑approved 20‑year capital plan. The five‑year forecast passed by a 5–0 roll‑call vote.
Treasurer Mr. Charnello presented the forecast and told the board the district had collected "92.45% of our expected revenue" through April and that the one‑time transfer was intended to "get this plan off the ground." He said the transfer causes the district to deficit‑spend this fiscal year but that, under current assumptions, the district's cash balance remains positive through fiscal 2029. "This year we would finish with 73 days of cash on hand. Our cash balance policy requires 90 days of cash," Mr. Charnello said.
Board discussion emphasized the risks posed by pending state legislation, including references to House Bill 96 (the state budget) and multiple proposed property‑tax bills. The treasurer warned that changes to state funding and local property tax rules could materially alter the forecast. He noted that the district relies heavily on local revenue (about 77% of general fund revenues) and that state funding per pupil is substantially below district cost of education in Willoughby‑Eastlake.
The transfer to begin the capital plan was approved as part of the district's consent calendar and will be applied to short‑term capital needs identified in the newly adopted facilities plan; board members said some of the funds may be available to, for example, reacquire district buses currently leased.
As part of the consent calendar, the board approved a suspension of the district cash‑balance policy for fiscal 2025 to allow the one‑time transfer; the suspension also carried as part of the consent calendar vote (5–0). The district said it will revisit the policy and its cash‑balance position after state budget actions are finalized and when the November forecast is prepared.
The treasurer stressed the forecast is a management tool and will be updated in November after the state budget is finalized.
