Treasurer reports August finances: revenue flat, cash transfers and higher insurance claims noted

Fairfield Union Local School District Treasurer Mrs. Roberts reported to the board that through the month of August the district had received $8.8 million in revenue, essentially flat compared with the same point last year.

Roberts explained the year-over-year property and public tax figure looks down about 9% but that was driven by a one-time true-up payment last year of roughly $225,000; excluding that payment revenue is down about 4%. Income tax receipts were up about 6% and state grants were up about 7%. Roberts said supplies spending is higher due to an early purchase of laptops to take advantage of lower pricing and that expenditures appear down about 10% for the month largely because last August included a three-pay period while this August had two pay periods; the district recently negotiated a change from 26 to 24 pay periods annually.

Roberts reported an ending cash balance through August of $12.1 million compared with $21.6 million the prior year; she said the decrease reflects a large transfer into the district’s 034 maintenance fund to support the master plan. She said she will present a five-year forecast at the next board meeting.

On insurance, Roberts said health insurance revenue is up and premiums increased for plan A (10%) and plan B (3%), but claims are high: year-to-date claims were up 32%, with “a handful” of participants already exceeding the $100,000 stop-loss threshold. She said those high claims will be reimbursed under stop-loss arrangements but are driving volatile short-term costs. Dental insurance showed modest claim increases but remains in good shape.

Roberts closed by reminding the board the district will continue to monitor revenue, expenditures and claims and will use cash balances to offset short-term increases if needed. She said further detail will be included in the five-year forecast to be presented at the next meeting.