Lexington Richland School District 5 reviews finances and fund-balance policy; board debates using set‑aside funds for construction management vs. teacher bonus

CFO Heather Tucker presented the district’s monthly financial summary for the month ending Nov. 30, 2024, and led a broader budget discussion that covered cash-flow timing, reserve thresholds and the district’s upcoming bond work tied to rezoning projects.

Tucker summarized year-to-date figures through November: the district reported roughly $76,500,000 in revenue year to date and approximately $80,700,000 in expenditures through November, noting that property-tax receipts generally arrive later in the calendar year and that the district remains on a standard seasonal cash-flow pattern. “We operate essentially on fund balance from August, September, October,” she said, explaining why the board’s reserve policy matters when much revenue is received after school starts.

Tucker walked the board through the composition of district revenue and long-term risks. In the district’s audited budget, state revenue accounted for about $147,000,000 — roughly 62% of total revenue — while local revenue (primarily property taxes) made up about 37.5%. She told trustees the district had relied on federal ESSER funds in recent years — an average of about $7.7 million per year over the last three years — and noted that ESSER funds will not continue at that level moving forward. Tucker warned of enrollment-related risk and charter-school adjustments that can reduce state funding, and she listed…