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District treasurer reports steady finances and final bond payment expected this week
Summary
Cary Community Consolidated School District 26 Treasurer presented midyear financials showing revenues largely on track, federal reimbursements that temporarily inflated December figures, and a final bond payment due that will close a prior chapter of district debt.
Mister Shepherd, the district treasurer, told the Committee of the Whole on Jan. 21 that the district’s fiscal year is tracking close to projections and that a final bond payment will be made "probably tomorrow," which will close the debt issued during an earlier financial crisis.
The presentation, delivered roughly halfway through the fiscal year, showed year-to-date state revenue slightly higher than projections because the district received a state maintenance grant. Shepherd said federal reimbursements in December also temporarily increased revenues after the district submitted special-education expenditure reports.
Shepherd said year-to-date expenditures are lower than projected overall but noted "other expenditures"—largely maintenance of facilities—are outpacing projections. He cautioned that payroll accruals in June and assumptions in the cash-flow model, especially around property tax timing and investment maturities, may overstate the year-end surplus. "While I think that we are going to run a surplus this fiscal year, I do not believe it's going to be the size and scope of the surplus that's listed on here," he said.
Shepherd described the mechanics of the final bond payment: the district will pay the invoiced amount and later receive a partial refund, which causes a reporting spike in February. He said the district currently holds a sizable investment portfolio, including federal treasuries that will be liquidated and reinvested as needed, and that capital-improvement bond proceeds will decline as summer construction begins.
Board members asked about marking the bond payoff for the community. Julie Jetty, board member, suggested a communication to parents and a webpage notice to note the milestone; Shepherd agreed that the district could post an announcement and include it in a parent letter.
The treasurer closed by saying the cash-flow model shows the district ending the year in good shape but urged caution about the model’s timing assumptions.
