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District finance briefing: enrollment dip, investments and a $391,000 emergency bus lift
Summary
Director of financial services told the board the district is roughly 81 students down from projections (an estimated local revenue impact of about $800,000), reported a stronger-than-expected beginning fund balance and described cash-flow strategies and investments; an emergency bus-lift replacement cost $391,000 and insurance costs rose more than budgeted.
The Lebanon Community School District’s finance director updated trustees on the district’s fiscal position, saying the system is managing cash flow and investments while absorbing an enrollment shortfall of about 81 students.
The director told the board auditors will be on site the following week to close fiscal year 2023–24 and that recent receipts—$209,000 (a second payment for a max-study accrual), $386,000 from indirect-rate claims, $125,000 in late property tax payments, and about $40,000 in investment interest—have improved the district’s cash position. The director said those items helped offset expected reductions from lower enrollment.
When asked to quantify the enrollment drop, trustees were told the local revenue impact of 81 fewer students is “about $800,000.” The director said the district ended the prior fiscal year with a stronger beginning fund balance (reported as 8.8 in the packet) and is monitoring encumbrances and insurance changes that will post after open enrollment closes.
On the expenditure side, the director reported an emergency replacement of a bus lift that cost $391,000 and a property/liability insurance increase materially higher than budgeted (the director reported an approximate 20.7% increase versus a budgeted 10%). Those unplanned costs and contract-driven salary/benefit changes will be reconciled in the coming month’s reports.
The director walked trustees through the district’s cash‑management strategy: diversifying investments among a local government investment pool (LGIP at about 5.3%), a money‑market account (reported near 5.7%), and a managed portfolio with Piper Sandler (approximate average yield 5.04%). Some longer investments are callable; the director noted a $3,000,000 holding that was called, triggering liquidity adjustments.
Board members asked about timing and liquidity of investments; the director said maturities are staggered monthly and that Piper Sandler investments typically mature in 6–18 months, with the longest concentrated near May–June. Trustees asked for continued updates as audit adjustments are finalized.
The meeting record shows questions from trustees and administrative clarifications but no formal budget adoption at this meeting; the finance director said final numbers would be reconciled after auditors complete work and open enrollment results are processed.
