Flagler Schools build utility increases, chiller project costs and potential IDEA grant delay into budget

Flagler County School District staff told the school board on Nov. 4 that projected increases in electric and water rates have been built into the current budget but could require cuts if final rates come in higher.

Board members asked about projected increases from Florida Power & Light and the Flagler Pankhurst water utility after vendor payments and renewals were presented. Plant‑services staff said FPL had projected roughly an 18% increase for commercial customers and that the district had already included such increases in the budget. Staff cautioned the final approved rate could be lower and that the projection drives the district’s planning assumptions.

Facilities staff also said changes in the district’s energy management systems influenced recent electricity use. The district is phasing in a chilled‑energy‑storage (CEP) project; staff said the temporary replacement of ice‑storage operations with increased nighttime air‑conditioning load contributed to current high usage and that the district expects to return to ice‑storage operations in January, which should reduce some load.

On water, staff described “substantial” year‑over‑year increases; a roughly 30% figure was raised by a board member during the discussion and staff said they had budgeted for earlier notices but sometimes receive incremental adjustments after budgets are set. Staff said they receive official rate‑change letters and present them to finance for adjustments if needed.

Board members pressed staff whether the district would need to cut programs to absorb additional utility increases. Finance staff said school and department budgets are already lean, with personnel representing the majority of costs, and that the district maintains a priority list of cost‑saving measures and would pursue those from the lowest priorities upward if additional funding needs arise.

Staff also briefed the board about a supplemental payment to a contractor (listed as DACG for a chiller/CEP project). The payment discussed in the meeting was connected to phased chiller plant replacements; staff said the CEP upgrade has been a multi‑year effort with about $4 million of work last year and roughly $2 million in the current year and estimated the project at approximately 70% complete.

Separately, staff warned that a federal government shutdown could delay the IDEA grant roll‑forward and related reimbursements. The district said a delayed roll‑forward has in prior years required the general fund to temporarily charge some salaries until federal reimbursements arrive (staff said roll‑forwards often come through in March), and that they were monitoring that risk.

Smaller vendor items discussed included ParentSquare and Imagine Learning renewals; staff described both as annual renewals. No board action on the utility projections, the CEP project or the IDEA funding was taken at the workshop; staff said they had included the known projections in the adopted budget and would return with adjustments if official notices altered those assumptions.