June 26, 2013 - Staff Report
A budget for the 2013-2014 school year that projects a deficit of $660,000 was adopted last week by the Mehlville Board of Education.
Board members voted 4-3 to approve the 2013-2014 budget that projects total expenditures of $105,725,000 with anticipated revenue of $105,065,000 — a deficit of $660,000. Board President Mark Stoner, board Vice President Lori Trakas and board Secretary Rich Franz were opposed.
For the 2012-2013 school year, which ends June 30, the district projects total expenditures of $100,050,000 with anticipated revenue of $102,300,000 — a surplus of $2,250,000.
Based on a projected total cash balance of $31,010,068 on June 30, the 2013-2104 budget estimates a balance of $30,350,068 on June 30, 2014.
Under state law, a school district is required to maintain a 3-percent balance in its operating funds or be considered a “distressed” district.
The approved 2013-2014 budget projects an operating fund balance of $21,563,557 — 22.58 percent — on June 30, 2014. That balance includes food service, activities and athletics. Excluding those, a fund balance of $19,435,696 — 21.79 percent — is projected on June 30, 2014.
Mehlville’s operating fund balance was projected to be $22,124,557 — 23.25 percent — on June 30. That balance includes food service, activities and athletics. Excluding those, a fund balance of $19,934,696 — 22.35 percent — is projected on June 30.
Regarding revenue for the coming school year, Chief Financial Officer Noel Knobloch wrote in his budget message that preliminary assessed values for residential property decreased by roughly 7 percent.
New construction amounted to $1.3 million, while personal property increased by $1.9 million, according to Knobloch.
“The net effect of these changes would result in an increase of approximately $300,000 when calculated in accordance with the Hancock Amendment,” he wrote.
Regarding expenditures, Knobloch wrote that the approved budget anticipates staffing will increase by six to 10 certified positions with the majority of the increase in full-day kindergarten, which begins this fall.
“The return to the three-tier bus system will require approximately 10 additional drivers,” he wrote. “However, those additions are not expected to increase overall payroll costs as the amount of hours driven will be approximately the same.”
Medical insurance costs are increasing more than the rate of inflation, and Knobloch projects medical premiums will increase 12 percent to 15 percent. The increase will be shared between the district and employees.