Cary Unit 26 treasurer says FY25 budget will be amended as cash flow tightens; amended budget to go on display

At a Committee of the Whole meeting April 21, 2025, Mr. Shepherd, treasurer for Cary Community Consolidated School District 26, told board members the district is three quarters through the fiscal year and is preparing an amended FY25 budget to reflect new information on revenues, interest earnings and planned capital spending.

Mr. Shepherd said district revenues are “coming in right along, in line with the projection,” but that local property-tax timing and slower state payments — especially transportation reimbursements — have contributed to a tighter near-term cash position. He said the district is planning for a roughly 20% reduction in state transportation claim funding for next year and that energy payments and unanticipated custodial costs will tighten the budget over the next three months.

The amendment includes updated beginning cash balances for the education, transportation and IMRF/social security funds to match the audit; an increase in projected interest earnings (from an initially conservative estimate of $200,000 to roughly $900,000); inclusion of revenue tied to the Maplewood property IGA with the village; and proposed fund transfers, including a $1,000,000 transfer from the operations and maintenance fund to capital improvements. Mr. Shepherd said some proceeds previously expected to be transferred to capital will instead be reinvested because the community referendum removed the need for that transfer.

He described a planned investment strategy with PMA to earn more on cash balances the district does not immediately need, noting the district will ladder maturities and consider short- and medium-term certificates. Board members asked about an investment maturing this summer; Mr. Shepherd said approximately $3.1 million to $3.2 million of investments will come due, and the district expects to reinvest roughly half and use the other half for capital depending on timing.

On capital spending, Mr. Shepherd said invoices tied to bond-funded projects will begin appearing in June and that the district expects to begin using bond proceeds early in the next fiscal year. He said the amended budget will reflect expected capital spending tied to projects planned for the coming months.

Mr. Shepherd recommended the board place the amended FY25 budget on public display next week. He said the amendment will remain on display through June and that the board will need to approve the final amended budget before the June 30 deadline; he noted the Committee of the Whole is scheduled to meet June 23 to allow the board to meet statutory timing requirements.

Board members voiced general support and thanked staff for the reporting. No final vote on the amended budget was taken at the April 21 Committee of the Whole meeting; Mr. Shepherd said the district will return the amended budget to the board for action after the display period.

The meeting later moved to closed session under statutory authority for personnel matters.