District projects modest fund-balance growth, $21M LTFM bonding and possible $800K insurance shortfall
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Lakeville's revised budget projects a $3.2M-$3.3M increase in the general fund balance to about $29M, plans a roughly $21M LTFM bonding, and flags a potential $800,000 shortfall in the internal service (insurance) fund that administration said could be covered by temporary borrowing against the general fund.
Bill Holmgren, executive director of business services, presented the district's revised budget at the Feb. 10 work session and highlighted key changes and risks.
Holmgren said the general fund balance is expected to increase by roughly $3.2 million to $3.3 million, bringing the projected total to about $29 million. "On the first page... we're expecting about 3.2 to $3,300,000 increase in the total fund balance," Holmgren said.
He noted an anticipated building-construction fund increase tied to a planned borrowing for LTFM (long-term facilities maintenance) of about $21 million and said Ehlers will report on borrowing progress at the next meeting. Holmgren also described revenue gains from higher interest earnings, increased third-party billing for special education services and higher facility rental income.
On expenditures, Holmgren said salaries and benefits are increasing (approximately 6%), with larger percentage moves in areas that reflect new hires such as deans and counselors. Transportation costs rose in part from a 4% contract increase and greater route needs as enrollment increased.
A risk area is the internal service (insurance) fund. Holmgren said a five-year average estimate suggests a potential $800,000 shortfall by the end of the year; he said the district could temporarily borrow from the general fund or address the gap through other options. "We looked at a 5 year average... we're showing that $800,000 deficit in the fund balance. Potentially. Potentially it could be better," Holmgren said.
Holmgren said corrections to a draft spreadsheet error will be made in the upcoming budget book and that a full book will be provided at the next board meeting for formal consideration.