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School committee amends FY26 operational budget, reviews FY25 closeout and approves $8.7 million borrowing
Summary
The committee adopted six budget motions to reflect increased state aid, reviewed FY25 revenues and expenditures and authorized short‑term borrowing of $8.7 million for capital work; officials described higher interest earnings and moving funds between accounts.
Director of Finance Jay presented an operations update and asked the committee to adopt six motions to amend the FY26 operational budget to reflect higher than anticipated state aid and other adjustments. He told the committee the net increase in state aid was about $145,000 in Chapter 70 funds, with smaller transportation adjustments.
Committee members voted to approve the six budget motions. The motions set operational appropriations, assessed member town shares and appropriated state aid and specific transfers from revolving accounts, as read at the meeting.
Jay also reviewed fiscal year 2025 closeout results. He said revenue exceeded earlier estimates by roughly $900,000, driven in part by larger district revenue and a one‑time uptick in transportation payments. A major change came from interest income: after negotiating with the district’s bank, Jay said interest earnings rose from roughly $1,300 per month to about $38,000 in a recent month after the bank raised rates on the district’s deposits.
Nut graf: The committee approved the required budget amendments for FY26, accepted a summary of FY25 carryforward and reserve balances, and authorized short‑term borrowing for capital needs. Officials emphasized the need to track prior‑year invoices and to maintain reserve balances for credit rating purposes.
Borrowing and capital finance
Jay said the district completed a short‑term bond sale and recommended the committee approve borrowing $8,700,000 (the bond principal as stated in the borrowing documents; premium proceeds increase available project cash). The committee approved the borrowing vote presented in the meeting warrant.
Jay said the district opened a separate capital project account with Rockland Trust yielding about 4% interest and worked with municipal advisors (Hilltop Securities) and underwriters to issue the short‑term debt. He described the borrowing as a temporary instrument while final project costs are confirmed and said funds will be refined in future borrowing steps.
FY25 closeout highlights
- Additional revenue: roughly $900,000 above budget, including about $280,000 in additional state aid and an increase in district revenue.
- Expenditures: salary savings of about $185,000; overspending on contract services (largely special‑education contracts) of roughly $300,000; savings in supplies of about $124,000.
- Reserves: undesignated fund balance certified at about $1.63 million; school choice and revolving account balances reported and discussed.
Ending: The committee voted to approve the budget motions, accepted the FY25 closeout summary, and authorized the borrowing; the finance director said more detailed reports would follow as year‑end reconciliations and capital project plans are finalized.
