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Finance committee reviews $5.97 million December transfer, delayed reimbursements and bond planning
Summary
Treasurer's report showed a December transfer of $5,973,093.72 to special revenue, delayed state nutrition reimbursements, investment opportunities tied to possible bond proceeds, and a planned $6 million defeasance to save interest.
Lee's Summit R-VII's finance committee heard a treasurer's report that included the district's December transfer to special revenue, an update on revenue timing and delayed state reimbursements, a planned defeasance for interest savings, and how the district would handle bond proceeds if the April bond election succeeds.
"Our transfer from the general fund to our special revenue fund for December, is $5,973,093.72," Mr. Holder, the district treasurer, told the committee. He described December as a typical month for transfers and noted weekly county collections affect timing. Holder said that December had fewer collection dates than the prior year and that a large county remittance received in early January would change operating fund totals.
Holder discussed timing strategies to estimate and realize revenue earlier in the fiscal year. He said the district could estimate after the January free-and-reduced-lunch count and "in February, we could estimate and we could, still do that conservatively," which could bring special revenue fund receipts into view by March.
The treasurer also reported delayed state reimbursements to the nutrition services fund. "We have not received a payment from the state for November, which normally we would have received in December, but not only did we not receive November, we're still waiting on October lunch," Holder said. He noted the district had received the October breakfast reimbursement but not the larger lunch reimbursement, which is typically "between $34,000" and thus skews the nutrition services revenue picture.
On investments and bond planning, Holder outlined how the district would invest bond proceeds after a successful April election. He said the district would likely sell a portion of bonds in June and then invest proceeds using a draw schedule, keeping some funds liquid for near-term bills and investing longer-term proceeds in term investments when appropriate.
Holder also said the district plans to "bring a defeasance, $6,000,000, of a that will save us over $1,000,000 of interest" to the board in February. That planned defeasance is intended to reduce future interest costs on outstanding debt.
No formal committee votes were recorded on these matters during the meeting. Staff said they would bring back budget amendments and additional details in future finance committee or board packets.
