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Committee hears budget shift to balance and a proposed 3.5% property tax increase
Summary
Staff said monthly projections have moved the district from an approximate $450,000 deficit to a balanced position after a proposed $3 million transfer to capital reserves; the draft budget includes a 3.5% property tax increase and planned borrowing of roughly $45 million for a capital project.
Staff member presented updated budget projections and told the committee that monthly adjustments and recommended transfers have narrowed the previously stated deficit. "Last month, we were looking about it... $450,000 deficit or so. This year, it's balanced at 0," the staff member said, noting a recommended transfer to capital reserve that factors into the calculations.
Staff said the overall expenses are projected around $128.4 million with an operational deficit of roughly $400,000 and that the district expects to borrow approximately $45 million for an identified capital project; staff estimated that borrowing will create around $3,000,000 in general-fund expense over the coming years.
The current draft budget includes a proposed 3.5% property tax increase. "Our current version of our budget maintains a tax increase at 3.5%," the staff member said, adding that the change would be about a $285 increase on an assessed property in the presented example. Committee members recognized that the narrow projection margins limited extended debate over that rate this year.
Staff outlined committed fund-balance recommendations: maintaining a real-estate assessment committed fund balance at $2,500,000; a health-care stabilization fund at $2,600,000; adding $55,000 for safety and security initiatives; and removing a $1,400,000 line for the financial-refresh project. Staff said the board will continue reviewing these figures as June revenue and other final data come in before the audit closing.
