Business services outlines debt schedule, $35.7M capital plan and $7,200-per-employee health benefit
Loading...
Summary
Executive Director Cara Stacell walked the board through four restricted funds that make up 36% of the district budget, highlighting a 10-year debt principal near $238 million, a preliminary $35.7 million capital budget and a health benefit trust that covers 5,466 lives and pays $7,200 per employee annually.
Cara Stacell, the districts executive director of business services, presented a multi-part budget briefing focused on restricted funds that cannot be used for daily operations: the debt service fund (Fund 30), bond fund (Fund 43), capital projects fund (Fund 40) and the health benefit trust (Fund 72).
Stacell said Fund 30 is used to repay voter-approved general obligation debt and that the districts current levy distribution is $0.73 per $100 of assessed valuation. She summarized long-range amortization projections and stated that, over the next 10 years, the amount of debt principal to be paid off or retired is "a little less than $238,000,000." She said amortization schedules by bond series are posted in the budget document and counsel structures repayment schedules to balance levy impact and principal payments.
On the bond fund, Stacell reported current-year bond revenue at $37,000,000 and said that revenue will fall in the coming year as fewer bonds are sold; she told the board the bond fund currently shows a projected excess of about $15,900,000. Capital projects (Fund 40) were described as restricted to major capital expenditures and equipment purchases; Stacell noted a DESE-calculated preliminary transfer ceiling of $11,800,000 and said the district preliminarily plans to transfer $10,000,000. The preliminary capital budget was presented at an estimated $35,700,000 and will focus on one-time projects including renovation of Harrison Stadium and HVAC upgrades at Kickapoo and selected elementary schools.
Stacell also described the health benefit trust (Fund 72), named current vendors (Anthem; Point C, formerly MedPay; Capital Rx; and a benefit broker), and highlighted that the district currently pays 100% of employee insurance for the base plan and HSA option. She quantified the employer-provided value as approximately $7,200 annually per qualifying employee and said the trust supports 5,466 covered lives, including dependents. Stacell told the board that changes to plan design or premium contributions typically come before the board in October and any rate changes take effect in January.
Board members asked technical questions about fund coding (capital vs. operating), time limits on bond funds versus capital funds, the purpose of the debt service fund balance and the mechanics behind balloon payments on certain years. Stacell answered that capital items above applicable thresholds must be coded to Fund 40, bond amortization schedules indicate principal-payment spikes and that bond counsel and amortization schedules guide levy calculations so a "no tax increase" plan was possible when assessed valuation increased.
Representative quotes from the meeting included Stacells explanation of fund purpose: "The purpose of this fund is to account for all of the transactions related to the revenue and the repayment of voter approved debt." Board members pressed staff on transparency of schedules and reserve assumptions; Stacell repeatedly pointed to the published amortization schedule in the budget document for series-by-year principal and interest detail.
Next steps: staff will continue budget development with the remaining presentation schedule and bring a final budget recommendation to the board in June; preliminary contracts and associated bids will be brought to the April 28 regular meeting for vote.
