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Finance director unveils new consolidated report and flags delayed tax collections, fund balances and insurance costs
Summary
Doug Schwinn presented a new consolidated financial report to the board, citing a roughly $610,000 year‑to‑date revenue delay tied to county tax collection timing after SB 190 and a $1,000,000 increase in expenditures driven primarily by salaries, large textbook purchases and insurance costs; he warned the self‑funded insurance plan saw high‑cost claimants early and will require monitoring.
The Kearney R‑I finance director introduced a new consolidated financial report intended to replace two of the district’s monthly reports and walked the board through revenue and expenditure trends.
“On the surface that sounds a little concerning,” Doug Schwinn said of a roughly $610,000 shortfall versus last year; he attributed much of the decrease to delayed county tax collections connected to implementation of Senate Bill 190. Schwinn said the county extended time frames for tax payments, so the district expects the money but later than usual — possibly into March — rather than lost.
Schwinn said year‑to‑date expenditures were up about $1,000,000 compared with last year. In a deeper breakdown he identified salaries and retirement costs ($512,000), a substantial textbook expense ($262,000 that hit this year but not last year), a transfer into the self‑funded insurance fund of a little more than $300,000, and increases in property/casualty and workers' compensation costs (roughly $145,000) as key drivers of the increase.
He reviewed performance by fund: Nutrition Services showed revenue and expenditures tracking closely but improved versus last year; the Activity Fund displayed revenue estimated at $1,145,000 with district subsidization of activity expenditures; Before and After School Care revenues and expenditures were roughly in line with last year; and capital/bond project activity was driven by timing differences in project payments.
On the self‑funded insurance fund (Fund 5), Schwinn and other staff said the plan started with a limited number of unexpectedly high‑cost claimants that have stressed early results. Board members pressed on runway and contingency plans; district staff said they are working with brokers and considering cost containment strategies this spring, and noted that reverting to a fully funded approach would likely cause large premium increases.
Schwinn also explained the district’s cash‑flow rhythm: the typical low point is in late December (he cited a December 31 cash low of about $3,683,000) followed by the large January tax payment; maintaining a healthy carryover balance prevents potential fiscal stress and state intervention if a district becomes dangerously low.
Board members asked for continued visibility into fund balances and historical trends; Schwinn said the new report includes multi‑year history and he invited feedback on details board members would like added.
