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Board hears finance update: internet costs, fund balance and upcoming accounting changes
Summary
Patty reported a roughly $23,000-per-year ‘last-mile connectivity’ internet fee (district pays a quarter share), urged keeping the ending fund balance to offset declining enrollment, warned of rising PERS costs hitting the 2027–28 budget, and briefed the board on statewide accounting changes tied to legislation that will require software and coding conversions starting now with implementation pushed to July 2028.
Patty gave the board a financial update that flagged technology and long-term liabilities as near-term budget concerns.
She described a recurring charge the district pays as 'last-mile connectivity'—a portion of the internet service bill shared with other districts—and estimated the district’s share is in the "$23,000 range" per year. Patty said the district intends to preserve the ending fund balance to support operations as enrollment declines.
"That's a fourth of our payment... it's in the $23,000 range," Patty said, explaining that if the provider’s internet fails, district connectivity is affected.
Patty also warned the board that the district has not set aside a dedicated account for PERS liabilities and that the budget will be affected in the 2027–28 cycle as PERS obligations change: "Our budget will be hit in 27–28 with our PERS because our ... PERS bond is sunsetting." She said the district is exploring other avenues to prepare for the impact.
On state reporting, Patty said a statewide conversion to a new accounting/reporting framework tied to legislation (referred to in the packet as House Bill 141) will require extensive conversion work and vendor coordination; the implementation date has been pushed back to July 2028 but preparatory work must begin now.
"This is not just flipping a switch," Patty said, describing required software updates, staff training and two years of conversion work to show the new reporting structure. She said Oregon Association of School Business Officials (OASBO) is coordinating work sessions to support districts through the change.
Board members asked clarifying questions. Patty and administrators said they will continue to monitor PERS projections, keep the ending fund balance to provide flexibility, and bring additional budget detail to upcoming meetings.
