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Board hears finance update; approves bus replacement financing and budget amendments
Summary
The Lee County Board of Education received a monthly finance update showing a remaining budget of roughly $32.1 million and approved a master replacement bus financing agreement for four buses totaling $626,364 plus related budget amendments and several maintenance and procurement items on the consent agenda.
The board received its April finance report showing a fiscal-year budget of $136,755,323.70, year-to-date expenditures of $99,000,007.84, encumbrances of $4,868,009.98 and a remaining budget of $32,102,026.06, representing 76.53% spent as of April, a finance staff member told the board.
Operations Committee chair Mister Momo reviewed multiple capital and maintenance items that appeared on the consent agenda, including an RFQ for a bus garage (six submissions), HVAC upgrades ($109,900), intercom upgrades ($427,665.64) and custodial floor waxing ($38,850). He also noted a request to purchase a new driver’s education vehicle for $26,037.64 and insurance renewals for general liability and automobile coverage with North Carolina School Boards Trust.
On new business the board approved a master replacement bus financing agreement for four buses that have reached the end of their useful life. "The state pays for the buses, but the school system carries the debt on our books," Mister Momo said, explaining the state’s role and that the district cannot retain titles for repurposing retired buses. The financing amount presented to the board was $626,364; a motion to approve the agreement passed by voice vote.
The board also approved budget amendments appropriating additional state funds (PRC 071 supplemental funds paid in April), federal indirect cost recovery and capital outlay to book the newly financed buses. Miss Jones, finance staff, said the capital outlay amendment is linked to the bus-financing agreement and that she would provide additional budget amendment details at the operations committee meeting ahead of the July board meeting.
Several maintenance and service contracts were listed on the consent agenda and approved by the board: intercom upgrades recommended to True IP ($427,665.64, lottery funds), HVAC work to Baker Mechanical ($109,900, lottery funds), and facility floor work to Citywide ($38,850, custodial budget). The board also approved renewal of HR and finance software (Link) for $70,442.21 and insurance renewals (worker’s comp and cyber-liability renewals discussed at the meeting showed a workers’ comp and cyber total of $227,809 across lines discussed).
Board members asked for clarification of the interest rate tied to the state bus financing; Miss Jones said she would follow up with the specific rate for the board by email. The board approved consent items and budget amendments by voice vote.
Why it matters: The bus purchase and related capital items affect transportation capacity and the district’s long-term capital liabilities; contract awards and budget amendments allocate district and restricted funds for operations and maintenance.
What’s next: The operations committee will review RFQ responses for the bus garage and additional budget amendments will be presented to the committee and then the full board at the July meeting, district staff said.
