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Board reviews FY26 general fund, LTFM reserves and 10‑year facilities plan
Summary
District staff presented the proposed FY26 general fund budget, projected revenues and expenditures, and a 10‑year Local Facilities and Maintenance (LTFM) plan that includes reserves for roofing and site projects. The board discussed replacement costs and a rising property liability insurance expense.
St Clair County Schools staff presented the district's FY26 projected budgets, including general fund, food service, community service and building construction funds, and a 10‑year plan for Local Facilities and Maintenance (LTFM) spending.
Staff reported FY26 projected general fund revenues of about $10.9 million and expenditures of about $10.872 million, leaving a modest projected increase in fund balance but a predicted decline in the unassigned balance. The presentation said the district expects an ending general fund balance around $3.8 million and highlighted $326,000 of LTFM revenue included in that projection with only $38,000 of LTFM expenditures in FY26.
The district emphasized its LTFM reserve as a tool for planned maintenance: staff said the district expects to hold about $1.5 million in the LTFM fund balance at the end of the year and is using building fund balances to finance recent major projects such as new chillers, boilers, a parking lot, playground and track. The staff presentation also included a preliminary 10‑year schedule that lists possible roof and site projects; an example line inserted in the plan anticipates a $300,000 roof repair in 2032.
Board members pressed staff on the sharp rise in property and liability insurance costs. Staff explained that increases in building replacement value drove much of the premium increase: the district's insured replacement cost rose by roughly $12 million in FY26, and that increase accounted for $17,800 of a reported $24,800 premium rise in the current year. Staff described ongoing efforts to seek competitive bids and to manage replacement‑cost estimates.
Food service and equipment needs also received attention. The board authorized plans to use food service reserves for equipment purchases of approximately $25,000 and discussed procuring battery backup to sustain meal service during power outages. Staff said emergency lighting upgrades were recently completed in restrooms and that battery backup procurement is under review.
The board discussed using the LTFM plan to set aside funds for predictable near‑term maintenance such as track resurfacing and sidewalks; staff said they would continue to update the plan and to submit required LTFM documentation during the summer audit cycle.
No formal vote on the general fund budget was recorded in the transcript excerpt; the presentation functioned as the board's formal review and set the agenda for subsequent budget adoption steps.
