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Finance report: district ends July with 7.2% fund balance; board discusses targets and bus depreciation
Summary
The business manager reported a 7.2% fund balance through July 31 and projected that at current burn rates this represents about 22 days of operating cash; board members discussed whether a 30‑day target (about 8%) is preferable and reviewed encumbrance software issues and bus depreciation timing.
The district’s business manager presented a finance snapshot through July 31 at the Aug. 28 board meeting showing a 7.2% fund balance, which was above the board policy minimum of 6%.
The presenter cautioned that July and August are seasonally high revenue months (state revenues flow then) and framed the 7.2% as equivalent to roughly 22 days of operations at the current daily expenditure rate. Board members debated whether the fund balance policy should aim at a 30‑day target (about 8%) or remain a percentage target, noting that the percentage‑to‑days relationship will fluctuate with revenue timing.
The business manager also highlighted certain pressure points in expenditures and encumbrances (special education and support services) and said the district had used a budget extension in July to account for revised projections. He noted software kinks in re‑encumbrance timing and recommended ongoing reconciliation work for smaller funds, associated student body accounts and capital project invoices.
On transportation, the business manager said the district is currently two buses behind its depreciation replacement schedule; August depreciation payments typically fund the equivalent of about one bus, and the district expects to present a bus purchase recommendation at an upcoming meeting.
"We have a 7.2% fund balance for July. The board policy is that have a minimum of 6% fund balance," the business manager said. He added that at the current daily spending rate the fund balance equates to approximately 22 days of operations, a practical way to view the reserve level.
What’s next: The board flagged the budget committee to discuss fund‑balance reporting and policy (percent vs. days), and business staff will continue to reconcile encumbrances and other smaller funds, and return with recommendations on bus replacement timing and the vehicle depreciation schedule.
Vote and motions: No formal action was taken on policy; the discussion will continue in committee.
