Cherokee County finance staff report positive budget outlook; board briefed on opt-out resolution and $100M bond sale

Cherokee County School District finance staff presented the monthly financial report for the month ending Jan. 31, 2025, and outlined FY26 budget development assumptions, potential savings and priorities while briefing the board on a proposed opt-out resolution and reporting results from a competitive bond sale.

Finance presenter Mr. Owen said the general fund has received $407,800,000 in revenue, representing 68.3% of the budget, and total operating expenditures of $293,600,000 were reported for the seventh month of the fiscal year (58.3% complete). The district reported a building fund balance of $65,500,000 and debt service fund balance of $45,800,000; staff said Edsplus (ESPLOST) collections for January were $6,800,000 (collections reflecting December activity).

On FY26 budget development, staff presented the calendar of hearings and a projection that assumes the board will opt out of the statewide floating homestead exemption under the November 2024 constitutional change and House Bill 581. The staff summary identified approximately $1.3 million in division-budget reductions already captured and about $9.9 million in redundancies that could be shed as the district aligns resources to newly adopted materials and systems, resulting in a net positive projection of about $13.9 million on one summary table.

Priorities identified for FY26 included honoring the CCSD salary scale (estimated $3.5 million), investing in student/teacher instructional resources (approximately $8.7 million identified in the five-year budget for FY26) and increasing school-based allocations for classroom supplies (at least $500,000). Staff noted that each 1% across-the-board cost-of-living adjustment would cost roughly $3.1 million in local funds.

Staff briefed the board on action item No. 1, a resolution to opt out of the statewide floating homestead exemption as provided by the constitutional amendment approved by voters in November 2024 and House Bill 581; during the work session a board member suggested removing that item from the consent agenda for separate action in the business meeting, and no final adoption occurred during the work session.

On bond financing, staff reported results of a competitive sale conducted that day. The district issued $100,000,000 in general obligation bonds and generated a premium of about $8,600,000. Staff reported a true interest cost of approximately 2.966%. In a separate refunding of the 2015 series, the district realized approximately $5,100,000 in savings with a net present value savings of 6.05% (board policy requires at least 3% net present value savings).

Board members praised the finance team's results and noted strong market interest and multiple bidders. The bond sale was presented as eligible for consent.