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Lee's Summit R‑VII treasurer reports delayed tax receipts, state‑aid shortfall; recommends $4.23M internal transfer
Summary
Treasurer Dr. Herzog reported local tax bills went out later than last year, producing delayed receipts that left operating fund percent-of-budget below last year; state adequacy funding remains below target and staff recommended a $4,231,222.72 transfer from the general fund to the special revenue fund to meet obligations.
Treasurer Dr. Herzog told the finance committee Lee's Summit R‑VII is running slightly behind on local revenue year to date (about 19.74% of expected receipts vs. 21% at the same point last year), largely because tax bills and notices went out later this year and many payments arrived after the Nov. 30 reporting cutoff.
“We did not start to receive some of our local revenue until late late November, early December,” Dr. Herzog said, explaining that mailed and emailed tax notices went out closer to Thanksgiving this year rather than on Nov. 1 as in 2024, pushing receipts into December. He added the district typically receives a large portion of annual local-tax revenue in December and expects those receipts to raise the operating fund balance in the coming weeks.
Dr. Herzog also said the state has not yet funded the full state adequacy target used in the district’s budget assumptions: the per‑student target number discussed in the meeting (referred to verbally in the transcript) has not been fully funded so far and the state’s payment to date was short of the target. Prop C receipts were also lower than anticipated, affecting percent‑to‑budget metrics even when dollar amounts remain substantial.
To meet obligations in special revenue (fund 2) for the month ending in November, Dr. Herzog presented a recommendation to transfer $4,231,222.72 from the general fund into fund 2 (no levy increase). The committee did not record a formal roll-call vote in the finance committee transcript; staff described this as the regular monthly transfer process used to keep fund 2 solvent.
Dr. Herzog reported a county‑payment timing issue: he said Jackson County deposits local-tax receipts weekly on Fridays and that recent Fridays produced lower deposits than typical. “On the twelfth, we received an email from the county saying that they were not making a payment, because they just an issue with their system,” he said, adding that the county anticipated resuming payments the following week.
What’s next: staff will process the recommended $4,231,222.72 transfer to fund 2 and monitor December receipts; the district expects larger local‑tax receipts through late December and into January that should improve operating-fund percentages.
