Board transfers referendum fund to operations and hears cash-balance update

The Elkhart Community Schools Board of Trustees approved a resolution May 27 to transfer amounts held in the operating referendum tax levy fund into the district’s operations fund, a procedural consolidation the administration described as permissible under Indiana law.

Administrators said the operating referendum fund currently holds approximately $3.5 million and no longer has a revenue source because the referendum has not been renewed in recent years. The transfer is intended as an accounting housecleaning measure and will not change the district’s overall cash balance, officials said.

In a financial update presented at the same meeting, the district reported a consolidated cash balance equal to about 5% of expenditures, below the state-prudential range cited in the presentation of roughly 10%–15%. The presentation noted the district expects local property tax receipts in June of roughly $13,000,000 and that those receipts will affect summer cash flows.

Finance staff said they are studying options to preserve an appropriate cash balance through the end of the fiscal year and may recommend borrowing if necessary; they also said steps such as summer schedule adjustments and other cost controls should provide some savings. The administration said it will provide additional details next month after working with policy analytics partners on scenarios tied to recent legislative changes.

The transfer resolution passed unanimously; board discussion confirmed the transfer would be completed after closing May to capture any final month expenses and reported at the June meeting.