City Schools of Decatur reviews FY27 draft budget, flags fund‑balance drawdown and recurring costs
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Summary
Board and staff presented FY27 draft 1 showing proposed salary/benefit increases, one‑time investments and a projected drawdown of fund balance from ~20% to about 7.7% if draft spending holds; officials said the first draft will be revised to balance recurring costs and recommended moving only one‑time items from reserves.
City Schools of Decatur officials on March 10 presented the first draft of the fiscal year 2027 general fund budget and warned that, as proposed, recurring salary and benefit increases would reduce the district’s fund balance substantially.
In a 90‑minute budget presentation, Chief Financial Officer Lonita Broom said the district projects revenues will rise modestly but that expenditures are increasing by roughly $10.7 million in draft 1, driven largely by salary and benefit costs (about $7 million). The preliminary draft assumes $3.7 million in one‑time uses of fund balance (including ERP implementation and early childhood learning center start‑up costs) and projects an ending fund balance near 7.7% of expenditures if no further changes are made.
The nut graph: Board members and finance staff said the draft is an opening offer, not a final plan, and emphasized the difference between one‑time uses of reserves and permanent recurring costs. Several board members urged staff to rework the draft to avoid using ongoing general‑fund revenue to cover costs pulled from SPLOST or other nonrecurring sources.
Finance staff described three categories of proposed one‑time spending: $915,000 for ECLC start‑up (furniture, instructional materials), $800,000 for an enterprise resource planning (ERP) finance/HR system, and $1.5 million for school‑specific repair and maintenance. Ongoing operating costs for the planned early childhood learning center were estimated at roughly $3.2 million with anticipated tuition and program revenues of about $2.3 million, leaving a modest net operating impact in later years once fully in service.
Board members focused on sustainability. Member questions centered on (a) which items in the draft are truly one‑time versus recurring, (b) whether SPLOST recurring costs have been shifted to the general fund to free SPLOST capacity, and (c) how state proposals (including recent property‑tax relief bills) could affect local revenue. Finance staff said some recurring software and license costs currently budgeted in SPLOST were proposed to move to the general fund, and that that move would increase recurring operating expenses.
What’s next: Staff will circulate revised budget drafts at subsequent board meetings, with a community budget hearing scheduled and a tentative budget expected in May and a final budget in June. The board asked staff to provide clearer multi‑year projections, a breakout of onetime versus recurring expenditures by function, and sensitivity runs showing the effect of different salary options.
Quotes: “This is the first draft,” CFO Lonita Broom said. “We will need to sharpen our pencils and reconcile recurring costs so the district remains sustainable.”
The board set a community meeting for March 25 to review the budget and related items; staff said the FY27 budget will be revised based on board direction and additional state allotment information before further votes.
