Finance report: district posts revenue amendment, outlines capital and bond project priorities

District finance and operations staff presented the board with updated budget information, a recommended budget calendar and a prioritized list of capital and bond projects during the March 20 meeting.

Finance staff reported an increase in projected revenue captured in a budget amendment (presented to the board during the meeting) and said most of that increase was local and attributable primarily to investment income. Staff noted a substantial increase in bond-related expenditures to align with approvals made earlier in the fiscal year and displayed the monthly bond financial postings the district provides to the board.

Staff called attention to self-insurance trends and advised the board of preliminary information from Marsh & McLennan indicating benefits costs may need to increase (staff presented a preliminary 23.5% increase figure based on current expenditure trends). Staff said further analysis was expected and that Marsh & McLennan would provide an update in mid-April.

Capital and project placeholders and priorities presented to the board included (figures are the staff-reported preliminary estimates provided in the presentation): buses (no purchase recommended in the presented draft), $240,000 for replacing cafeteria tables (92 tables), a $250,000 contingency allocation, $750,000 for field and track/tennis repairs (Francis Howell High School track and tennis court repairs were highlighted), $2,000,000 for parking-lot repairs and resurfacing, new bleachers for Sager and Hollenbeck middle schools (approximately $158,000 each), a $370,000 HVAC allocation for Hackman Early Childhood Center (with other HVAC projects to be determined), $500,000 for furniture/fixtures/equipment, $206,000 for white-fleet replacements (including two HVAC vans), and $670,000 for roofs (including Fairmount and a section at Hollenbeck Middle School). Staff also identified replacement cycles and site prioritization procedures used to compile the list.

Staff updated the board on assessed valuation figures provided by Saint Charles County, noting an increase in assessed valuation (staff presented a 7.7% figure versus prior values and an 8.8% figure versus values published during the tax rate hearing). Staff said the Hancock Amendment cap and Consumer Price Index factor into levy calculations and presented a preliminary operating levy estimate of about 3.2777 (staff said the number would be refined in coming weeks). Staff said the district will bring a full budget recommendation at the June 5 meeting and seek final approval at the June 19 meeting; a debt-service defeasance recommendation is likely in May.

Board members asked clarifying questions about investment managers (staff named MOSIP and another pool) and how the district manages the portfolio and also about whether safety and security audit recommendations would be paid from operating funds or capital depending on the nature of the purchase or contract.

Finance staff closed by reminding the board that many of the presented figures were preliminary and that the budget process continues through June.