Hillsboro R-III board adopts FY25 budget amendment, adjusts capital and debt service planning

The Hillsboro R-III School District Board of Education approved a revision to the FY25 budget that adjusts revenue and expenditure projections, updates fund allocations and earmarks capital transfers.

District presenters said the general fund revenue projection increased by about $1.7 million after incorporating year-to-date actuals and updated estimates from the Missouri Department of Elementary and Secondary Education (DESE) and local tax collections. The district reported an assessed valuation of approximately $372 million, lower than the preliminary estimate of $380 million, and noted that adjustments to the debt service levy and interest earnings affected fund balances.

The presentation detailed several changes: reallocation of teacher funds (75% to fund 20 and 25% to fund 10), recognition of interest earnings and an escrow transaction tied to a property purchased in 2004, and a projected end-of-year general fund balance targeted at about 43.4% of expenditures. The capital fund showed an increase in available resources; staff proposed a planned transfer from the classroom trust fund of $850,000 plus an additional year-end transfer of approximately $1.8 million to support future capital needs including buses, a band trailer and field projects.

Presenters described capital lease obligations of about $2.5 million (including central office, farm equipment and energy leases) and explained why paying down certain leases immediately may not be advantageous when invested cash returns exceed the lease interest cost.

Board materials included a line-by-line recapitulation of revenues (current and delinquent taxes), expenditures and projected balances. Board members voted to authorize the amendment as presented.

The board approved the amendment and materials to allow staff to proceed with planned capital purchases and to set aside funds for multi-year staffing and facility plans.