Mount Vernon board approves May fiscal forecast, creates capital-projects and termination-benefits funds

MOUNT VERNON, Ohio — The Mount Vernon City School Board on Monday approved the district—s May financial forecast and established two new restricted funds to set aside money for facilities work and employee severance costs.

Treasurer Judy Forney presented the May forecast and told the board the district is "expecting to end this fiscal year with, the $19,734,000," while also warning that "we do need to appropriate an extra $10,000,000 I know that sounds like a lot." The forecast and the fund-creation resolutions passed on roll call.

The measures matter because they formalize a plan to reserve money for long-term maintenance and for payout of accumulated sick-time and severance. Forney said the district put about $2,000,000 in supplies and materials on the books this year (about $1,800,000 spent so far) and included a roughly $500,000 textbook-adoption expense. She described the district—s current revenue and expenditure picture and the uncertainty that remains while the state biennial budget is unsettled.

Forney walked the board through key line items: she reported year-to-date interest earnings of $757,000, noted that total expenditures are roughly $45 million with revenues near $50 million, and identified the textbook adoption and rising costs for supplies as contributors to higher-than-expected expenditures. She also said the district has historic severance costs of roughly $200,000—$250,000 over the past five years.

Under the approved resolutions the board established a Fund 070 (Capital Projects) account and a Fund 035 (Termination Benefits) account. Forney said the board will formally move money into those accounts at a later meeting, likely in June, depending on the final state budget outcome. "The board has to say broadly what we want to use it for, not specifically but broadly," Forney said when describing allowable uses for the capital projects fund.

Board members asked clarifying questions about timing and restrictions. The board voted on the fiscal-services package; the roll call recorded "Yes" votes from Dr. Bennett, Ms. Regolodai and Mrs. Gatzman and a "Yes" from Mr. Ward on the final tally. The motion carried.

The treasurer recommended the additional $10 million appropriation to ensure the district can cover end-of-year payables and encumbrances; Forney said the appropriation does not move money, it only permits spending that already exists in cash balances if needed. She also said any interest earned on money placed in the new funds will stay in those funds.

The board will revisit exact transfers and specific capital-project recommendations at the June meeting, after more clarity on the state budget and the district—s closing-year cash flow.