Business office reports lower interest earnings; FY23‑24 ending fund balance confirmed at $24.6M

The district's business office presented monthly financials and highlighted three items: lower statewide LGIP interest rates, a new practice of separating GO bond receipts into a dedicated account, and the finalized FY23‑24 ending fund balance.

"Currently, our interest rate is about 4.25% compared to 5% at this time of last year," the business office reported. The presentation explained that because bond receipts for GO bond debt service will go into a dedicated LGIP account, interest earnings that previously flowed into the general fund will instead be applied to reduce future bond tax requirements for taxpayers. The business office projected the practice and declining rates will reduce general‑fund interest earnings by roughly $4,745,000 in fiscal year 2024‑25.

The office confirmed the audited ending fund balance for FY23‑24 as $24,600,000, slightly below an earlier estimate of $25,000,000; the difference reflected updated property‑tax calculations and deferred revenue adjustments. The presenter explained that the district builds budget forecasts on historical LGIP performance and cash‑flow needs, and that some short‑term investments (1–3 months) are chosen with advisor recommendations when LGIP limits are reached.

Board members pressed the business office on forecasting practices and the role of external investment managers in forward guidance. The business office replied managers provide options and short‑term rates but do not set district budget assumptions; budgeting relies on historical trends and current short‑term instruments when needed.