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Springfield R‑XII finance staff outline debt, bond and health-benefit trust plans as budget season begins

3043045 · April 16, 2025
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Summary

District finance staff presented preliminary budgets and long-range debt projections for the debt service, bond (capital projects), capital projects fund and Health Benefit Trust Fund; presentation included debt-service levy, remaining bond capacity and self‑insured health plan enrollment and cost figures.

Kara Stacell, the district’s finance presenter, briefed the Springfield R‑XII Board of Education on preliminary budget assumptions for four central funds in the district’s 2025–26 budget: the debt service fund, the bond (capital) fund, the capital projects fund and the Health Benefit Trust (self‑insured health) Fund.

Stacell told the board the district’s debt service fund (Fund 30) is supported primarily by a debt service levy currently set at 73 cents per $100 of assessed valuation and by carryover fund balance and interest earnings. She said long‑range projections show fairly consistent annual debt payments and that, over the next 10 years, the district will repay roughly $197 million in principal across seven active series.

Stacell described the bond fund (Fund 43, sub‑fund of capital projects) as the repository for voter‑approved bond proceeds and the expenditures specified in the ballot language. She said the district still has $30 million in bonds to issue from the April 2023 authorization and that bond proceeds are reflected primarily as fund balance carryover in years when no bond sale occurs.

On capital projects (Fund 40), Stacell noted the district’s preliminary DESE‑calculated allowable transfer for next year is approximately $11.1 million and that capital outlays currently under consideration (non‑bond capital) total about $23 million in the preliminary estimate. The district maintains a multi‑year capital forecast and prioritizes life‑cycle replacements to reduce year‑to‑year volatility.

On employee health benefits, Stacell said the Health Benefit Trust (Fund 72) covers three plan options (base, buy‑up and a health savings account/high‑deductible plan). In the current year the district pays 100% of premiums for the base plan and the HSA plan; Stacell said the district’s annual per‑qualifying‑employee cost is $6,984 (about $582 per month). The most recent census in the presentation showed the plan covers approximately 5,328 lives, including dependents. Stacell said the district reviews plan design and contribution levels annually and has a three‑year market review cycle for providers; the HBT procurement was currently out to market.

Stacell closed by outlining the budget development schedule: a follow‑up presentation on the general and teachers’ fund in May, small‑group meetings, and a final recommended budget in June for adoption by the July 1 statutory deadline.

Board members asked clarifying questions about retiree coverage and the composition of the bond and debt balances; Stacell explained retiree subscribers may remain on the plan and pay their own premiums through the third‑party administrator (MedPay) and that fund balances are used to smooth payment obligations when principal schedules spike. Several members noted recent growth in assessed valuation helped maintain levy rates, and Stacell confirmed investment earnings had returned meaningful interest in recent high‑rate years.

No budget votes were taken at the meeting; the presentation was informational and part of the district’s developing budget process.